8.11.6  FBAR Penalties

Manual Transmittal

October 28, 2013

Purpose

(1) This transmits revised IRM 8.11.6, Penalties Worked in Appeals, FBAR Penalties.

Material Changes

(1) Updated references and made editorial changes throughout.

(2) Revised IRM 8.11.6.1 to discuss new forms available for electronic filing, clarifies when Alternative Dispute Resolution rights are not available for FBAR cases, made reference to mitigation threshold conditions for FBAR penalties, joint and severable liability, accrual of interest, unagreed closings, bankruptcy relief, electronic filing requirements for FBARs, and the venue for FBAR cases. Changed the time for completing post-assessed FBAR cases from 60 days to 120 days.

(3) Revised IRM 8.11.6.2 clarifies premature referrals, updated information on how to contact the FBAR Coordinator, added that protested years should match the case summary card, and added that IRS Counsel memo is needed for willful penalties over $10,000.

(4) IRM 8.11.6.3.1 Clarified that an Appeals Officer has the authority to execute a Title 31 FBAR extension.

(5) Moved Account and Processing Support (APS) procedures for establishing FBAR cases on ACDS to IRM 8.20.5.24.

(6) IRM 8.11.6.5 Clarified the information to be verified and contained on the case summary card for FBAR cases. Changed the time for completing post-assessed FBAR cases from 60 days to 120 days.

(7) IRM 8.11.6.6 Clarified instructions for processing a payment received for an FBAR penalty.

(8) IRM 8.11.6.8 makes reference to APS closing procedures for all types of FBAR cases now contained in IRM 8.20.7.25, Foreign Bank and Financial Accounts (FBAR) Penalty Case Closing Procedures.

(9) IRM 8.11.6.8.2 Clarified closing procedures for pre-assessed FBAR cases.

(10) IRM 8.11.6.8.3 Clarified closing procedures for post-assessed FBAR cases.

Effect on Other Documents

This supersedes IRM 8.11.6 dated August 14, 2012 (effective October 1, 2012).

Audience

Appeals employees

Effective Date

(10-28-2013)


Susan L. Latham
Director, Policy, Quality and Case Support

8.11.6.1  (10-28-2013)
FBAR Overview

  1. The Financial Crimes Enforcement Network (FinCEN) delegated to IRS its enforcement authority for penalties imposed under Title 31, Sections 5314 - 5321 for the failure to file Form 114 , Report Of Foreign Bank And Financial Accounts (FBAR). This delegation was effective April 8, 2003, by memorandum of agreement between FinCEN and IRS.

    Note:

    Form TD F 90-22.1 is now obsolete.

  2. Form 114, Report of Foreign Bank and Financial Accounts, must be filed by US persons who have a financial interest in or signature authority over one or more financial accounts in foreign countries with an aggregate value exceeding $10,000 at any time during the calendar year. Failure to file this form may result in civil and/or criminal penalties. The civil penalties may be appealed.

  3. FinCEN has introduced new Form 114(a), Record of Authorization to Electronically File FBARs, for filers who submit Reports of Foreign Bank and Financial Accounts (FBARs) jointly with spouses, or wish to submit them via third-party preparers.

  4. Effective July 1, 2013, filers must electronically file the FBAR through the Bank Secrecy Act E-File System.

  5. FBAR reports are now filed only via FinCEN’s electronic filing system. Filings can be researched on the Currency and Banking Retrieval System (CBRS) or on Integrated Data Retrieval System (IDRS) using command code (cc): IRPTRO. Penalty cases, assessments and payments are recorded on a separate FBAR database maintained by the Enterprise Computing Center (ECC).

  6. Post-assessed FBAR cases in excess of $100,000 cannot be compromised by Appeals without approval of Department of Justice (DOJ). See 31 USC 3711(a)(2) and 31 CFR §902.1(a) and (b). Once assessed, the penalty becomes a claim of the U.S. Government.

  7. Pre-assessed FBAR penalties are eligible for Fast Track Settlement only if the FBAR 30 day letter, Letter 3709 has not been issued to the taxpayer.

  8. Pre-Assessed FBAR penalties are eligible for Fast Track Mediation. Refer to IRM 8.26.3, Small Business Self Employed (SB/SE) Fast Track Mediation .

  9. Post-assessed FBAR penalties do not have Alternative Dispute Resolution (ADR) rights.

  10. Post Appeals Mediation (PAM) is not available on any FBAR penalty case.

  11. Refer to IRM 4.26.16.4.6, Mitigation, for mitigation threshold conditions for FBAR penalties.

  12. There is no joint and severable liability with FBAR penalty cases.

  13. Interest on FBAR penalties does not accrue until the penalty is assessed.

  14. Unagreed FBAR cases are closed immediately to Enterprise Computing Center (ECC) for assessment. A statutory notice of deficiency is not issued.

  15. Title 11 Bankruptcy does not provide relief for FBAR penalty debt.

  16. FBAR penalties may come to Appeals as stand-alone cases or together with a related income tax or international penalty.

  17. FBAR penalties are an Appeals Coordinated Issue and require a referral to International Operations prior to holding the first conference. International issue guidelines are available from the Appeals International Technical Specialist (ITS).

  18. The FBAR penalty case will usually be received in Appeals pre-assessment. However, upon request, Appeals will also conduct post-assessment hearings as provided in Title 31 CFR 5.4 and 900 to consider FBAR penalty liability and collection.

    Note:

    Post-assessment FBAR penalty cases are priority cases and must be worked expeditiously. Appeals requires these cases be completed and approved within 120 days of assignment. This is calculated from the Appeals Officer assigned date (ASGNDATE) to the date the Appeals Team Manager (ATM) approves the case for closing (ACAP date).

  19. The venue for challenging FBAR penalties is the United States District Court, not the United States Tax Court.

  20. Additional FBAR Resource materials available:

    • IRM 4.26.16 ,Report of Foreign Bank and Financial Accounts (FBAR). It should be used as a reference for background and statute information.

    • IRM 4.26.17, Report of Foreign Bank and Financial Accounts (FBAR) Procedures.

    • LB&I website http://lmsb.irs.gov/hq/pqa/Post-filing/pfa_FBAR_Home.asp

    • SBSE website http://mysbse.web.irs.gov/aboutsbse/frdbsa/default.aspx

    • IRS.gov http://www.irs.gov

    • FinCEN website http://bsaefiling.fincen.treas.gov

8.11.6.2  (10-28-2013)
FBAR Administrative Case Files

  1. Appeals requires 180 days remaining on the assessment statute of limitations at the time the administrative file is received. Cases with less than 180 days remaining on the assessment statute of limitations at the time the case is received by Appeals should be returned to the originating function as a premature referral so an extension may be secured. If no statute extension is secured then the penalty can be assessed and the taxpayer will be given post-assessment appeal rights. Refer to IRM 8.11.6.3.1 for information on the statute of limitations for FBAR cases.

    Note:

    The FBAR penalty applies and is assessed separately and not jointly. There should be one individual under examination per FBAR case file.

  2. Administrative files are generally forwarded to the Appeals Office by:

    Type of FBAR case Sent by
    Post-assessed FBAR penalty

    Note:

    Verify penalty assessment by reviewing Form 13448Penalty Assessment Certification Summary (Title 31 "FBAR") , which should be in the case file.

    The FBAR Penalty Coordinator at the Enterprise Computing Center
    Pre-assesed FBAR penalty Compliance Tech Services

    Note:

    Email "*SBSE BSA Compliance - FBAR Penalty Coordinator" for information on the penalty assessment or contact the Appeals FBAR Coordinator regarding the FBAR assessment. The Coordinator can be found in the Appeals Domestic & International Issue Locator by searching either Issue:FBAR or UIL:9999-99-01 (Uniform Issue List) on the Domestic & International Issue Locator.http://appeals.web.irs.gov/TG_locator/application/query.asp.

  3. The administrative file will contain the following documents:

    • A brief summary memorandum explaining the FBAR violation(s) containing statistical information which includes:

      Item Number Description
      1. A discussion of the FBAR violations.
      2. The number of penalty assessments.
      3. The dollar amounts.
      4. The FBAR case disposition.

    • A Form 13535, Foreign Bank and Financial Accounts Report Related Statute Memorandum, signed by the designated Program Manager affirming that the information shows the FBAR violations were committed in furtherance of income tax violations, when appropriate.

    • A copy of any delinquent FBAR(s) secured by examination

    • FBAR issue workpapers

    • FBAR 30-Day Letter

      Note:

      Letter 3709 for pre-assessment

      Note:

      Letter 3708 for post-assessment

    • Taxpayer's protest. The protested years should be the same as the years on the case summary card.

    • FBAR/Title 31 Power of Attorney Form 2848, if applicable.

    • IRS Counsel Opinion memo for FBAR penalties larger than $10,000 (for willful penalties only).

8.11.6.3  (10-28-2013)
FBAR Statute of Limitations

  1. The statutes of limitations on assessment statute expiration date (ASED) and collection statute expiration date (CSED) of FBAR penalties are defined under Title 31, the Bank Secrecy Act.

  2. FBAR penalty cases may be sent to Appeals either pre-assessment or post-assessment.

  3. Appeals controls the statute of limitations in pre-assessment cases with the ASED and in post-assessment cases with the applicable CSED.

  4. Statute of limitations must be determined on each individual under examination.

    Note:

    Married couples under FBAR examination are treated as individual cases and an extension must be obtained from each individual under examination.

8.11.6.3.1  (10-28-2013)
FBAR Penalty Statute of Limitations on Assessment (ASED)

  1. The statute of limitations on assessment (ASED) and collection (CSED) of FBAR penalties are defined under Title 31, the Bank Secrecy Act.

    TYPE OF VIOLATION ASED
    Failure to file FBAR report (either willful or non-willful) 6 years from the due date of the FBAR report (Due date is 06/30/YYYY)
    Failure to maintain required records (either willful or non-willful) 6 years from the date the IRS first asks for the records

    • For questions concerning extending the time to assess an FBAR penalty and for a copy of the consent form, contact the Appeals FBAR Coordinator.

    • Use the Title 31 statute extension form.

    • An Appeals Officer has the authority to execute a Title 31 FBAR statute extension. See IRM 1.2.52.14, Delegation Order 25-13 (formerly DO 4-35, Rev. 1).

    Examples
    Example 1: In calendar year 2004, a foreign bank account owned by a U.S. person exceeds $10,000.00. The Report of Foreign Bank and Financial Accounts (Form TD F 90-22.1) is due June 30, 2005, but the account holder does not file one. The assessment statute of limitations for failing to file an FBAR report expires June 30, 2011.
    Example 2: Same facts as in Example 1, and in addition, the account holder failed to maintain required records. An examiner requested the records on March 1, 2008. The assessment statute of limitations for failing to maintain required records expires on March 1, 2014.

    Note:

    If both types of violations have occurred, examiners can assert both the failure-to-file an FBAR report penalty and failure to maintain required records penalty on the same account for the same period. However, Compliance policy in 4.26.16.4.7, FBAR Penalties - Examiner Discretion, allows examiners discretion over whether to assert multiple violations against one FBAR report.

  2. For procedures on protecting the statute of limitations, refer to IRM 8.21.3.1.3.1, Protecting Statues, General Guidelines.

  3. For information on preparing consents, refer to IRM 8.21.3.1.3.3, Consent Processing, in conjunction with advice from a Counsel FBAR coordinator.

8.11.6.3.1.1  (10-28-2013)
FBAR Penalty Statute of Limitations on Collection

  1. On post-assessment FBAR cases only the collection statute expiration date (CSED) will be entered on ACDS (Appeals Centralized Database System) to control the statute of limitations.

  2. There are two separate collection limitation periods for FBAR cases and they run concurrently:

    • CSED Explanation
      2-year limitation on filing suit period in which the Government may file a civil action to recover an FBAR penalty.
      10-year limitation on offsetting payment period in which the Government may obtain payment of the FBAR by offsetting payments

  3. The following table provides information on when to use the 2-year or 10-year date:

    If FBAR received Statute Date Statute Code
    30 days before the expiration of the 2-year CSED enter a date 2 years from the date of assessment enter statute code FBAR2
    within 30 days of or after the 2-year CSED enter a date 10 years from the date of the assessment enter statute code FBAR10

8.11.6.4  (10-28-2013)
Establishing FBAR Penalty Cases on ACDS

  1. For Account and Processing Support (APS) procedures regarding establishing FBAR cases on ACDS, refer to IRM 8.20.5.24, Foreign Bank Account Report (FBAR) Penalty Cases.

8.11.6.5  (10-28-2013)
Appeals Officer Procedures for FBAR Penalty Cases

  1. All FBAR penalty cases are controlled on ACDS (Appeals Centralized Database System).

  2. The taxpayer name is the U.S. person subject to the FBAR penalty and could include:

    • an individual citizen or resident of the United States

    • a U.S. entity (includes corporations, partnerships, LLCs, estates, trusts, and any other legal entity formed in the U.S.)

  3. Upon receipt of the case, the Appeals Officer will verify the following Case Summary Card (CSC) information requesting changes when required:

    • Entity information (address and spelling),

    • TIN to ensure correct account is controlled on ACDS.

    • MFT = 00

    • Type code = FBAR

    • Feature Code = AI, IC and IT and any others which apply

    • Category Code = Other

    • UIL Code= 9999.99-01

    • AIMS indicator = E(xempt). FBAR cases are not controlled on AIMS (Audit Information Management System) or ERCS (Examination Returns Control System).

    • POA/Representative information

    • Tax periods at issue covered by the Representative's authority

    • Statute Date or Statute Code, these fields must be validated within five (5) days of receipt. See IRM 8.21.3 , Appeals Technical Employees Statute Responsibility.

    • STATDATE (statute date) or STATCODE (statute code) will be input as follows and is dependent upon whether this is pre or post-assessment: The table below provides information on what entries to make:

      If FBAR Penalty is: STATDATE (statute date) CODE (statute code)
      Not assessed 6 years from the date of the violation, either the due date of the FBAR report or date on which records requested. Blank
      Assessed with more than 30 days before the expiration of the 2-year CSED 2 years from the date of assessment FBAR2
      Assessed and within 30 days of the expiration of the 2-year CSED or the CSED has expired 10 years from the date of assessment FBAR10

    • Verify the uniform ACDS acknowledgment letter and enclosure were sent to the taxpayer with Pub 4227 Overview of the Appeals Process . Do not include Pub 4167 and Notice 1016 as they are not applicable to FBAR cases.

    • Verify the years on ACDS match the years protested by taxpayer. If there are additional years in the case file that have not been closed by Exam and have not been protested by the taxpayer, contact the Appeals FBAR Coordinator to have the Revenue Agent send or prepare Form 13536, FBAR Monitoring Document to ECC to either have the tax year closed with a warning letter or have the year opened. Once the tax year has either been open or closed by ECC, ACDS must be updated accordingly.

    • Prepare referral Form 13381, Appeals Technical Guidance Referral, through ACDS and forward to the International Technical Specialist (ITS) responsible for the issue. A list of Appeals Coordinated issues and the responsible ITS can be found at http://appeals.web.irs.gov/TG_locator/application/query.asp.

    • Case Activity Record (CAR) codes - mandatory codes:

      CARATS code CARATS code definition
      CR Case Received
      CF/xx Conference type/xx =
      • FF - fact-to-face

      • ML - by mail

      • NN - not necessary

      • NR - no response

      • NS - no show

      • PC - telephone call

      • VC - video conference

      DM Determination Made
      AC-FR Final Determination Made

      Note:

      Additional CARATS codes will be entered to properly document case activity. Additional information relating to ACDS can be found in CARATS Operational Definitions at located on the Utilities pop-up menu within ACDS.


  4. Verify the FBAR penalty assessment status. E-mail "*SBSE BSA Compliance-FBAR Penalty Coordinator" for assessment verification or contact the Appeals FBAR Coordinator for the assessment status.

  5. Post-assessment FBAR penalty cases are priority cases and must be worked expeditiously. Appeals requires these cases be approved and closed within 120 days of assignment to an Appeals Officer (assignment to ACAP).

8.11.6.6  (10-28-2013)
Payment Procedures for FBAR Case

  1. If payment is received on an FBAR penalty case:

    • Photocopy the check or money order and attach to the original Form 13449, Agreement to Assessment and Collection of Penalties Under 31 USC 5321(a)(5) and 5321(a)(6)..

    • Complete Form 3210 Document Transmittal, describing all documents attached.

    • Forward the original payment with a copy of the Form 13449, Agreement to Assessment and Collection of Penalties Under 31 U.S.C. 5321(a)(5) and 5321(a)(6), and Form 3210 Document Transmittal, by UPS Overnight mail to the following address:

    Internal Revenue Service

    Enterprise Computing Center

    Attn: FBAR Coordinator, Tel 313-234-1611

    985 Michigan Ave

    Detroit, MI 48226

    • Send Form 13449 , Agreement to Assessment and Collection of Penalties Under 31 U.S.C. 5321(a)(5) and 5321(a)(6), executed by the ATM to ECC for posting prior to closing the case. ECC will send Form 13448 Penalty Assessment Certification Summary (Title 31 "FBAR"), for verification of assessment to put in the case file.

  2. DO NOT USEForm 3244, Payment Posting Voucher, when processing a payment on an FBAR penalty case. See IRM 8.11.6.7 when this occurs to resolve the problem.

  3. The information above is also available in IRM 4.26.17.4.5Closing the FBAR Case - Payment .

8.11.6.7  (10-28-2013)
Problems Related to FBAR Case Payment Posting

  1. Form 3244 Payment Posting Voucher, is not used to post the payment for FBAR penalty cases.

  2. If Form 3244 Payment Posting Voucher, is inadvertently executed take the following steps:

    • The Appeals employee will be responsible for tracing the payment to ensure that it is refunded from the tax module

    • The Appeals employee will then need to obtain another payment which will be sent to ECC for posting to the FBAR database

    • Enterprise Computing Center (ECC) will record and process the payment, using, as appropriate:

      Type of Document Title
      Form 13448 Penalty Assessments Certification Summary (Title 31 FBAR) (internal document)
      Letter 3708 Notice and Demand for Payment of FBAR Penalty (copy)
      Notice 1330 Information on Making FBAR Penalty Payment by Check

8.11.6.8  (10-28-2013)
FBAR Closing Procedures

  1. Refer to IRM 8.20.7.25, Foreign Bank and Financial Accounts (FBAR) Penalty Case Closing Procedures, for APS procedures for closing all types of FBAR cases.

  2. There are three types of closings for an FBAR penalty case. Determine the type of case and follow those instructions outlined in the following sections:

    • Premature Referral

    • Pre-Assessment

    • Post-Assessment

  3. It is important to know which type of FBAR case to determine the valid ACDS closing codes:

    Determination Made CLOSINGCD
    Agreed or No Change - valid only for pre-assessment case 03
    Unagreed or Partially Sustained valid only for pre-assessment case 13
    Sustained in Fullvalid only for post-assessment case 14
    Not Sustainedvalid only for post-assessment case 15
    Partially Sustainedvalid only for post-assessment case 16
    Premature Referral valid for either pre-assessment or post-assessment 20

8.11.6.8.1  (10-28-2013)
FBAR Closing - Premature Referral

  1. Appeals may have received the income tax case or international penalty case along with the FBAR case or only the FBAR case.

  2. See the table below for information on handling the case as a premature referral:

    If Premature Referral- jurisdiction is released on the Then
    Combined income tax, FBAR and International Penalty case
    • close cases together

    • return to the originating Compliance office, generally the Technical Services (TS) staff

    • Appeals Officer prepares Form 5402 Appeals Transmittal and Case Memo, to notify the ECC FBAR Penalty coordinator jurisdiction is released.

    Income tax case only
    • return to the originating Compliance office

    • Appeals Officer prepares Form 5402 Appeals Transmittal and Case Memo, to notify the ECC FBAR Penalty coordinator jurisdiction is released

    FBAR case only is being returned as a premature referral
    • return to the originating group

    • notify the ECC FBAR Penalty Coordinator

    • Appeals Officer prepares Form 5402 Appeals Transmittal and Case Memo, to notify the ECC FBAR Penalty Coordinator jurisdiction is released.

  3. ACDS field entries for closing the premature referral. Case level entries are:

    • Closing Code: 20 - Premature Referral (Jurisdiction Released)

    • Date Closed : Date case sent to the Quality Measurement Staff (QMS) or Group Manager

    • ACAPDATE : Date ATM signed Form 5402 Appeals Transmittal and Case Memo

    • Action : ACKCLS

    • To Date: Date case sent to QMS or Group Manager

    • From Date: entered when receipted Form 3210Document Transmittal is received back.

  4. No entries are required at the return level.

  5. Send the FBAR file with transmittal Form 3210, Document Transmittal, to Technical Services or the originating group.

  6. Send a photocopy of Form 5402, Appeals Transmittal and Case Memo, and Appeals Case Memorandum (ACM) to ECC at the following address:

    Internal Revenue Service

    Attn: FBAR Penalty Coordinator

    P.O. Box 33113

    Detroit, MI 48232–0113

8.11.6.8.2  (10-28-2013)
FBAR Closing - Pre-Assessment Case

  1. The Appeals Officer will prepare the closing letter and Form 5402.

  2. There are two types of Agreed FBAR cases:

    • Agreed with signed waiver Form 13449, Agreement to Assessment and Collection of Penalties under 31 USC 5321(a)(5) and 5321(a)(6), and itemized statement attached to Form 13449.

    • No Change case - FBAR is not sustained and signed Form 13449 is not required.

  3. An unagreed case is when the FBAR penalty is fully or partially sustained. Form 13449 is not required for an unagreed case. Send/fax the Form 5402 to the FBAR Coordinator at ECC.

  4. Send Form 13449 , Agreement to Assessment and Collection of Penalties Under 31 U.S.C. 5321(a)(5) and 5321(a)(6), to ECC for posting prior to closing case. ECC will send Form 13448 for verification of assessment to put in case file. Send a copy of the executed Form 13449 to the taxpayer with the appropriate closing letter.

  5. The FBAR Coordinator at ECC can be contacted at:

    Internal Revenue Service

    Attn: FBAR Penalty Coordinator

    P.O. Box 33113

    Detroit, MI 48232–0113

    Fax (313) 234-2278

    Email *SBSE BSA Compliance-FBAR Penalty Coordinator

  6. The Appeals Officer will date and mail the letter after it is approved and signed by the Appeals Team Manager (ATM) prior to the time the case is being closed to Account and Processing Support (APS). For an unagreed case use Letter 5143, for an agreed case use Letter 5080, and for a full concession case use Letter 913.

  7. ACDS Closing entries :

    • Closing Codes: see table above in IRM 8.11.6.8

    • Date Closed : Date Case sent to ECC

    • ACAPDATE: Date the ATM approves the case and signs Form 5402.

    • ACTION: ACKCLS

    • To Date: Date case was sent to the FBAR Penalty Coordinator at ECC.

    • From Date: Date the receipted Form 3210 was acknowledged by ECC.

    • Revised Penalty - Def/OA:

      Agreement type Dollar entry for each tax period
      Agreed with waiver enter total amount of penalty agreed to
      No Change enter zero (0)
      Unagreed total amount of the penalty imposed

8.11.6.8.3  (10-28-2013)
FBAR Closing - Post-Assessment Case

  1. Post-assessment FBAR cases are priority cases and require expedited handling.

    Note:

    Pay special attention to those cases where the FBAR assessment is more than 180 days old.

  2. The Appeals Officer will prepare the closing letter and Form 5402, Appeals Transmittal and Case Memo.

  3. The Appeals Officer will date and mail the closing letter after it is signed by the ATM.

  4. ACDS field entries for closing post-assessment FBAR cases:

    • Closing Codes:

      ACDS Closing Code Closing Code Definition
      14 sustained in full
      15 not sustained
      16 partially sustained

    • Date Closed: Date case sent to the FBAR Penalty Coordinator at ECC. APS will send case to ECC.

    • ACAPDATE: Date the ATM approves the case and signs Form 5402.

    • Action: ACKCLS

    • To Date: Date the case was sent to the FBAR Penalty Coordinator at ECC.

    • From Date: Date receipted copy of Form 3210 received from ECC.

    • Revised Penalty amounts:

    • Type of closing (closing code) Dollar entry for each tax period
      Sustained in full (14) enter total amount of penalty agreed to
      Not Sustained (15) enter zero (0)
      Partially Sustained (16) revised penalty amount

  5. The FBAR administrative file should contain the following additional documents at closing:

    • Form 13449, Agreement to Assessment and Collection of Penalties under 31 USC 5321(a)(5) and 5321(a)(6), and itemized attachment if agreed and Form 13448, Penalty Assessment Certification Summary (Title 31 "FBAR"), from ECC. This is the verification assessment was made.

    • Form 5402 and Appeals Case Memorandum. If the case has both pre-assessment and post-assessment penalties, close all penalties together on the same 5402. Use the closing code for the post-assessed year on the Form 5402.

    • FBAR penalty computation, if any changes were made

    • Appeals closing letter dated and signed by ATM. The AO will mail the closing letter prior to case going to APS. For an unagreed case use Letter 5143, for an agreed case use Letter 5080, and for a no-change case use Letter 913.

    • Original and copy of any delinquent FBAR(s) secured by Appeals.

  6. APS sends the FBAR file by UPS Ground with Form 3210, Document Transmittal, to:

    Internal Revenue Service

    Enterprise Computing Center

    Attn: FBAR Penalty Coordinator 313-234-1611

    985 Michigan Ave

    Detroit, MI 48226

8.11.6.9  (10-28-2013)
FBAR Administrative File

  1. The following documents should be included in the administrative file:

    • Form 5402, Appeals Transmittal and Case Memo, and ACM

    • Form 13449 , Agreement to Assessment and Collection of Penalties Under 31 U.S.C. 5321(a)(5) and 5321(a)(6), and itemized attachments

    • Copy of any checks received in Appeals

    • Closing letter which has been signed and mailed

    • CARATS activity record

    • Copy of any FBAR(s) received by Appeals

    • FBAR Penalty Computation spreadsheet/worksheet

    • Copy of Form 13448 , Penalty Assessment Certification Summary (Title 31 "FBAR"), ECC assessment of penalty, if applicable

    • ACDS Case summary card

    • Additional items identified as necessary


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