Secure a SOL extension, as necessary.

Complete Form 2363-A, Request for IDRS Input for BMF-EO Entity Change, if a transfer is due to a permanent change of address.

Notify CP&C EO Referrals if the case is the result of a referral.

The manager transfers the case via RCCMS.

Reason the requested location is more efficient for the examination.

Taxpayer's current address, phone number, and current principal place of business.

Address/location of taxpayer's books, records, and source documents.

Information as to who possesses the required records and is available to expediently resolve issues.

Available resources in the area to which the taxpayer requests transfer, if known.

Other factors that show how conducting the examination at a particular location poses undue inconvenience to the taxpayer.

Organization's current address.

Location of the organization's business.

Location of the organization's books and records, including vouchers, invoices, cancelled checks, and other documents usually maintained at the business site.

Location where the IRS can perform the examination most efficiently.

Availability of the IRS's resources at the location to which the organization requests a transfer.

Other circumstances that indicate conducting the examination at a particular location would create undue inconvenience to the organization.

Participants > 1,000.

Multiemployer plan.

Leveraged ESOP / TRASOP / KSOP.

Defined benefit (DB) average benefit test.

Separate line of business rules.

IRC 403(b) plan for an educational organization which is a state, a political subdivision of a state, or an agency or instrumentality of any one of these.

Cash balance plans (conversions) and hybrid plans.

IRC 457 plans.

Governmental and church plans (> 999 employees).

Determination application for the same plan was graded as a GS-12 case.

Participants > 200 and < 1,001.

Defined benefit (DB) plan terminations.

DB safe harbor plans with permitted disparity.

DB collectively bargained plans.

Target benefit plans.

ESOP / TRASOP / KSOP (not leveraged).

Defined contribution (DC) plans using the average benefit test.

Affiliated service group status.

Cash balance plans (no conversion issues).

IRC 412(3) fully insured plans.

Governmental and church plans (< 1,000 employees).

Orphan plans.

The IRC 403(b) plan is sponsored by an organization recognized by the IRS as a IRC 501(c)(3) organization.

The sponsor employs fewer than 1,000 employees.

There are no related IRC 457 plan features.

Collectively bargained or terminated DC plans.

DC plans with permitted disparity.

Plans using the ratio percentage test.

DB safe harbor plans without permitted disparity (non-integrated).

IRC 408(k) or IRC 408(p) plans (Simplified Employee Pensions (SEP) or SIMPLE IRA).

All other plans without Grade 12 and 13 factors.

Plans with fewer than 201 participants.

Some factors that may increase the case grade include failures relating to:

Other factors that may increase the case grade include:

Factors that may decrease the case grade include:

You need experience as necessary to determine and resolve issues and apply established laws, precedents and methods frequently used and generally applicable;

May have complicated features involving controversy or a number of interrelated issues;

The impact of case decisions may extend beyond the organization or metropolitan area because of the scope of activities or the nature of the issues.

Direct precedent isn’t available or appropriate.

Controversy due to interpretation or adaptation of precedents.

Complications involving interrelated questions of a factual, financial, legal or accounting nature.

Issues impacting larger organizations of regional or national stature or that may arouse public attention.

Investigation of issues requiring ingenuity.

Resolution of issues requiring considerable tact and discretion.

Complexities necessitating a high degree of experience and sophistication.

Decisions that may involve substantial and/or large sums of money or large numbers of people, with the possibility of widespread public attention.

Complications that could occur, involving intricately related major issues or unusual issues with conflicting or nonexistent precedents.

Predict the appropriate overall grade level for the position of employees doing work assigned in accordance with it, or

Supersede OPM standards in any way.

Restricting the scope to single issue items to reduce the grade.

Assigning the case to a senior examiner, while assigning the junior examiner to help in the examination.

Assigning the case to the junior examiner, while assigning a senior examiner to coach the junior examiner through the examination.

Reviewing Web-based Employee Technical Time System (WebETS) monthly to ensure that the time spent doesn’t exceed the 25 % threshold.

Applied for exemption under IRC 501(c)(4) by filing Form 1024, or

Filed at least one Form 990 Return of Organization Exempt From Income Tax or, if eligible, Form 990-EZ Short Form Return of Organization Exempt From Income Tax, or Form 990-N Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ.

IRC 6652(c)(4)(A) imposes a penalty of $20 per day, up to a maximum of $5,000, for each day after the due date that an organization doesn’t submit Form 8976.

The penalty is automatically applied when organizations file Form 8976 more than 60 days after the date of organization. The penalty posts to a civil penalty module (MFT 13) and the IRS issues a CP 215, Civil Penalty notice to the organization.

The penalty can be abated if an organization’s failure to timely submit the Form 8976 was due to reasonable cause.

A similar penalty is imposed by IRC 6652(c)(4)(B) on organization managers who, in response to a written IRS request, don’t submit Form 8976 by the date specified in the written request.

See IRM 20.1.8.3.2.4, IRC 6652(c)(4) – Failure to Submit Notice of Intent to Operate as IRC 501(c)(4) Organization Under IRC 506, for additional information on the IRC 6652(c)(4) penalties.

After an organization submits Form 8976, the IRS reviews it to ensure that the organization has provided all required information (name, address, EIN, date of organization, state and country of organization, purpose statement). If Form 8976 is complete and filed timely, IRS updates master file status code to 36 and issues Letter 5822 (acknowledgement letter) electronically. If IRS doesn’t accept the Form 8976 for any reason, we issue Letter 5823 (notice of non-acceptance) and refund the user fee.

An organization’s Form 8976 isn’t an application within the meaning of IRC 6104 and isn’t open to public disclosure. The IRS doesn’t keep a publicly available database of filed Forms 8976. See section 7.01, Rev. Proc. 2016-41.

For Forms 8976 filed beginning in January 2017, IDRS shows a date of organization (as given by the organization on Form 8976 - ORG DT:MM-DD-YYYY) and a date of IRC Section 506 notification (in other words, the Form 8976 user fee date - REG DT:MM-DD-YYYY). These new fields are displayed near the top of the first page of BMFOLO (before the EO submodule information).

BMFOLO doesn’t record Forms 8976 filed before January 2017. Consequently, you must contact the taxpayer to determine whether they filed Form 8976 before January 2017. Contact your group manager and TEGEDC, if necessary, if the taxpayer claims they filed Form 8976 before January 2017 but refuses to or can’t provide proof they filed.

If Form 8976 was timely filed or if the organization wasn’t required to file Form 8976, you must notate this conclusion on the Form 5773.

If Form 8976 was not filed, send a written demand, requesting the organization submit the Form 8976 by a specified date determined reasonable under the circumstances. You must verify that the Form 8976 is filed in response to your written demand by securing either proof of filing from the organization (for example, a copy of Letter 5822) or a BMFOLO showing that it was filed. See 2b below if the taxpayer refuses to file Form 8976 in response to the written demand.

Form 8976 filed late: If, in response to the written demand, the organization submits Form 8976 late, you don’t need to assess the penalties against the organization, because the penalty is automatically assessed when IRS issues the CP 215 Notice. Refer to IRM 20.1.1.3.2 Reasonable Cause, to determine whether the organization’s failure to timely submit a completed Form 8976 was due to reasonable cause. Document all determinations of reasonable cause in sufficient detail in the workpapers. Get a reasonable cause statement from the organization and include it in the RCCMS case file.

Failure to file Form 8976: If, in response to the written demand, the taxpayer fails to file Form 8976 by the date specified in the written demand, consult with your group manager and TEGEDC, as necessary, to discuss applying the penalty on the organization’s managers and/or other compliance actions. Document the discussion, penalty approval and/or compliance actions taken on the CCR.

Solicit the delinquent return(s).

Establish the case on AIMS Master File for the applicable MFT. If the taxpayer has a Form 5500, Annual Return/Report of Employee Benefit Plan, filing requirement, follow the procedures in IRM 4.70.13.9.4.1 EP Form 5500 Considerations.

Delete the NMF AIMS account (the NRU account) using Form 10904, following the procedures in IRM 4.70.14.2.1.2.4.2 EP NRU Cases Established in Error.

The case may be surveyed per group manager discretion.

The examination may continue at the group manager’s discretion.

All related Forms 5500 series, 5330, and 990-T returns. A related return is defined as a Form 5500 filed by the plan sponsor or an affiliated employer (e.g., member of a controlled group or an affiliated service group) for another plan.

Income and employment taxes reported on Form W-2 and Form 1099-MISC.

Form 1099-R for plan distributions.

This verification should be done during the pre-examination analysis phase of the examination using IDRS command code BMFOL.

Certain parts of plan examinations may reveal that the plan sponsor/employer has an employment tax issue.

If you determine that a possible classification issue exists, contact an Employment Tax Specialist through the Specialist Referral System.

Be alert to possible withholding issues. During an examination of a plan, EP reviews Form W-2 to verify certain items for plan qualification, such as compensation and deferrals. While reviewing the Forms W-2, you may discover a Form W-4 withholding issue, such as employees who have little or no income tax withholding. In certain instances, you may want to obtain RTVUE prints for questionable employees.

If you determine that the taxpayer has questionable Form W-4, make copies of the Forms W-4 for those employees who are still employed by the taxpayer and forward them to the W-4 Coordinator at the appropriate Service Center. The following information must be contained on each Form W-4: Employee name, address and SSN; Employer name, address and EIN; Marital status and number of allowances claimed by the employee; Date of the W-4; and items pertaining to exempt status (complete when applicable).

Make sure the Forms W-4 that you send to the Service Center's W-4 Coordinator are legible and complete. Submit Form W-4 to the Service Center’s W-4 Coordinator, where the taxpayer files Form 941, at the earliest date possible on Form 3210. See Form 941 instructions for the appropriate Service Centers. Provide the employer’s name, address, EIN and the number of forms attached in the body of the Form 3210. If the employer has not filed any Forms W-4 with the IRS and the Forms W-4 are questionable, notate the Form 3210 with a note indicating multiple questionable Forms W-4 are attached. Specify in the workpapers that you sent the Forms W-4 to the Service Center.

It is important that taxpayers timely file these returns as required.

See the specific return and instructions to the applicable return for more information on filing requirements.

Examples of information returns that should be inspected include: Other Forms 5500 filed by the employer; Form 1099-R and Form 1096, which are related to plan distributions; Form W-2 ;Form 8300, involving plan assets; Form 945, related to distributions from the plan; and Form 1042.

The adequacy of taxpayer’s records is a critical factor in determining the scope of the examination. Normally, continue the examination to a point where it is reasonably certain that the information return requirements have been fulfilled. Generally, a detailed examination (including any penalty consideration) is warranted if available information indicates that: Information returns were not filed, income amounts were materially incorrect as reported or the time required to make the necessary verifications and/or to get copies of the incorrect or delinquent information returns justifies improving voluntary compliance (payor or payees).

If you discover that the entity has not filed returns or forms that are under the examination jurisdiction of EO/GE or one of the Examination Functional Units’ (LB&I, SB/SE or W&I), prepare and forward Form 5666 to Classification.

There are three specific areas where you may identify an invalid SSN:

To satisfy the required filing checks, your workpapers must document the steps taken and support the conclusion noted for filed returns.

The waiver must be properly authorized and documented.

Document a manager’s authorization on the CCR and applicable workpaper. Include the reason used to support the waiver, and an analysis if the waiver is based on a computation.

Authorization and documentation can take the form of a group manager’s memo to the group specifying conditions or circumstances to justify a waiver. You can reference the group manager’s memo on Form 5773, at section.

Check for the filing of returns listed in the succeeding paragraphs, absent a waiver.

In general, for any IRC 170(c) organization involved in fund-raising or receives donated property, check for:

In general, for any organization involved in gaming, check for:

In general, for any educational, research or health care provider organization, check for:

In general, for any applicable large employer organization as defined by IRC 4980H or provider of minimal essential health coverage, check for:

In general, for any organization with a food or beverage establishment or social club where tipping is customary, check for Form 8207, Employer’s Annual Information Return of Tip Income and Allocated Tips.

In general, for organizations with international or foreign features, or with foreign workers and contractors, check for:

In general, for organizations that issue bonds, check for Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues and Form 8038-T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate.

In general, for organizations that may be involved in reportable or abusive transactions, check for:

In general, for organizations making political expenditures, or for political organizations, check for:

See Exhibit 4.70.12-1, EO Filing Check Guidance Table, at the second column, for a complete list of filing checks that are required but are waiver-eligible.

If information obtained from the case file, outside sources, internal databases, or from the conduct of the exam, indicates potential non-compliance, you may conduct a compliance check.

Optional filing and compliance checks include:

Identify returns that should be filed during the filing check phase.

Reconcile related returns with line items shown on the primary return under examination.

If the examination reveals transactions with related organizations, or the sharing of facilities, inspect pertinent related returns for accurate reporting.

During the examination of a Form 990, Form 990-EZ, Form 990-PF or Form 990-BL where the facts and circumstances warrant, inspect the officers’ personal income tax returns by securing a RTVUE printout to determine whether all gross income items (from the EO exam) have been reported.

If an officer didn't properly report all items of gross income, prepare a discrepancy adjustment report. If a full examination is warranted, complete Form 5666, TE/GE Referral Information Report, or Form 5346, and forward to CP&C Referrals for consideration by the appropriate function.

Group manager: Refer an approved information report to CP&C Referrals for transmittal to the appropriate division for consideration.

If an organization potentially violated the provisions of IRC 4980B concerning the continuation of health care benefits, prepare Form 5666 or Form 5436 and send to CP&C Referrals for forwarding to the appropriate PSP outside of EO.

Ensure policies to verify the statute of expiration is accurate, including proper determination of assessment statute expiration date (ASED) or any alpha codes used or to be used.

Properly identify statute expiration dates on tax returns and/or information returns (filed and non-filed).

Closely monitor all controlled cases to protect all statutes of limitations to prevent their expiration.

Identifying and protecting the statute of limitations for returns in their inventory, including all primary and related returns covered by the scope and depth of exams being conducted. You are also responsible for protecting the statute of limitations for subsequent tax years if there is a potential tax effect.

Verifying the correctness of the statute of limitations date shown on RCCMS/AIMS for each return in their inventory and verifying ASED alpha day codes.

Initiating and completing the Statute Validation process in RCCMS.

Document on CCR you have completed the statute validation process in RCCMS.

Obtain managerial approval before you open an examination of a return with fewer than 12 months remaining on the statute.

Document the approval and justification, or disapproval on the CCR.

Consider factors such as the amount of potential tax liability and the impact on plan participants before opening a year with a short statute.

If you/your manager decide to examine a return with 270 days or less remaining of the statute of limitations, submit a request for AIMS/RCCMS establishment and statute validation.

IDRS

AIMS

Received date stamped by the campus on the face of the original return.

Postmark date on the envelope in which the return was mailed, if attached.

Serious criticism of the IRS’s administration of the tax law.

Inconsistent treatment of similarly situated taxpayers.

The establishment of a precedent that seriously hampers IRS subsequent attempts to take corrective action.

The loss of a substantial amount of tax revenues.

The statute date doesn’t change unless you update it to reflect an executed statute extension or to an alpha statute code.

The group manager and specialist must continue to monitor the statute.

Use inventory validation guidelines, monthly reconciliation of AIMS Table 4.0, Returns with Statute Date Pending, and RCCMS, to ensure you start statute control procedures within 270 days of its expiration.

Either secure a statute extension on Form 872-H to extend a short statute, or with your group manager’s approval, update the statute of limitations on the corresponding Form 5500 return to alpha code "PP" . See IRM 4.70.12.3.7.7, Use of Alpha Codes.

When the statute is updated to alpha code "PP" (for example, 12/PP/2018), prepare a memo of explanation justifying the use of alpha code "PP" , obtain your manager’s signature on the memo.

Forward a copy of the memo to your Area Manager.

Update the statute of limitations to alpha code "PP" immediately upon assignment.

When you expand the scope of a project code 6451 examination to include an IRC 401(a) issue and the statute of limitations is still open for that year, the general statute of limitation procedures contained in this IRM apply and you must protect the statute of limitations for Form 5500 / Form 1041.

When you expand the scope of a project code 6451 examination to include an IRC 401(a) issue and the statute of limitations is closed for that year, the statute of limitations on RCCMS and AIMS should continue to reflect alpha code "PP" for that year. If Form 5500 examinations are opened in later years for which the statute is still open, the general statute of limitations procedures contained in this IRM apply and you must protect the statute of limitations for Form 5500 / Form 1041.

25% omission of income taxes. The statute of limitations is extended from three years to six years from the date the return is filed or deemed filed, whichever is later, if there has been a substantial omission of 25% of the amount of gross income properly includible on the return. See IRC 6501(e)(1) and 26 CFR 301.6501(e)-1(a). This does not apply to employment tax returns (Forms 940/941/944) that underestimate originally reported wages.

Exceptions to statute of limitations. In the following circumstances, there is no assessment statute of limitations. See IRC 6501(c).
• False or fraudulent returns
• Failure to file a returns
• Willful attempt to defeat or evade tax in any manner

In the following circumstances, the assessment statute of limitations is altered. See IRC 6501(c).
•Certain amended returns
Extension of the statute by agreement

IRC 4940 Tax: If a private foundation omits from its primary return tax imposed by IRC 4940 an amount of tax properly includible which is in excess of 25% of the amount of tax imposed by IRC 4940 which is reported on the return, the tax may be assessed at any time within six years after the return was filed. If a private foundation discloses in its return (or in a schedule or statement attached thereto) the nature, source, and amount of any income giving rise to any omitted tax, the tax arising from such income is counted as reported on the return in computing whether the foundation has omitted more than 25% of the tax reported on its return. See IRC 6501(e)(3) and 26 CFR 301.6501(e)-1(c)(3)(i). IRC Chapter 41 and IRC Chapter 42 Excise Taxes (Other than IRC 4940): If a public charity or a private foundation, trust, or other organization, as the case may be, fails to disclose an item subject to tax under IRC 4911, IRC 4912, IRC 4941(a), IRC 4942(a), IRC 4943(a), IRC 4944(a), IRC 4945(a), IRC 4951(a), and IRC 4952(a).

IRC 4953, and/or IRC 4958 in its primary return (or a schedule or statement attached thereto), the tax arising from any transaction not disclosed may be assessed at any time within six years after the return was filed. See IRC 6501(e)(3) and 26 CFR 301.-6501(e)-1(c)(3)(ii).

Form 5330. There has been an omission of more than 25% of the excise tax due, unless disclosure of the item giving rise to the tax was made in a manner that adequately apprises the Secretary of the existence and nature of the item. See IRC 6501(e)(3) and 26 CFR 301.6501(e)-1(c).

IRC 4953, and/or IRC 4958 in its primary return (or a schedule or statement attached thereto), the tax arising from any transaction not disclosed may be assessed at any time within six years after the return was filed. See IRC 6501(e)(3) and 26 CFR 301.-6501(e)-1(c)(3)(ii).

The filing of a primary return which discloses sufficient facts to apprise the IRS of the potential existence of unrelated business taxable income begins the running of the period of limitations on assessment of tax on Form 990-T, Rev. Rul. 69-247, 1969-1 C.B. 30.

The filing of a primary return which discloses sufficient facts to apprise the IRS of the potential existence of tax on political expenditures may begin the running of the period of limitations on assessment of tax on Form 1120-POL even though Form 1120-POL was not filed based on the rationale applied to unrelated business income in Rev. Rul. 69-247, 1969-1 C.B. 303.

A primary return filed by a public charity, a private foundation, a non-exempt charitable trust, or a IRC 501(c)(4) starts the running of the period of limitations on the assessment of excise tax on a Form 4720 filed or required to be filed by the organization, private foundation or trust and on Form 4720 filed or required to be filed by foundation managers and/or disqualified persons. The filing of the primary return starts the running of the period of limitations on assessment of excise tax on Form 4720 even if the transaction, act, or failure to act that gives rise to the excise tax on Form 4720 isn’t disclosed on the primary return. The filing of a Form 4720 by the organization, foundation manager or disqualified person doesn't start the running of the statute of limitation. See IRC 6501(l)(1) and 26 CFR 301.6501(n)-1.

The filing of a primary return by a taxpayer, who determines in good faith that they are an exempt organization under IRC 501(c), starts the running of the statute of limitation, if the organization is later held to be a taxable organization. See IRC 6501(g)(2) and 26 CFR 301.6501(g)-1(b). (Applies to both organizations ruled as exempt by EO Determinations and to AIMS status 36 cases.)

An income tax return received within 60 days before the ASED.

The amended return shows the taxpayer owes additional tax.

There must be sufficient information to calculate tax liability.

The document must purport to be a return.

There must be an honest and reasonable attempt to satisfy the requirements of the tax law.

The taxpayer must execute the return under penalties of perjury.

On the RCCMS NRU case, enter the statute date of the related Form 941, Form 1120, Form 1120-S, Form 1065, or Form 1040, (as applicable) affected by the NRU examination.

The statute date will help you and your manager monitor the case for a timely referral or pursuit of a Form 1040/1120 discrepancy adjustment, or pursuit and assessment of applicable penalties, when necessary.

Initially, Classification uses the normal statute date of the related Form 941 for IRC 403(b) and IRC 457(b) examinations for RCCMS statute control purposes.

EP won’t control the Form 941 return for IRC 403(b) and IRC 457(b) examinations on AIMS since EP does not have jurisdiction to examine Forms 941.

Even though EP does not control the Form 941 statute date on AIMS for the applicable tax years, protect the Government’s interests for any potential tax adjustments to that return before the statute expires.

Steps to protect the Government's interest would include making a timely referral on Form 5666 with Exempt Organizations (EO) (or whichever business unit has jurisdiction over the taxpayer) to ensure the Form 941 statute is protected for any proposed adjustments.

When you make a timely referral to EO (or whichever business unit has jurisdiction over the taxpayer), the responsibility to protect the statute no longer rests with you. When you make a timely referral, update the statute of limitations to alpha code "EE" in RCCMS and NMF AIMS (for example, 04/EE/2018).

You may update the statute date for the IRC 403(b) and IRC 457(b) examination to alpha code "EE" when you and your manager determine that there are no tax consequences to the related Form 941 or the Form 941 tax is insignificant.

You may update the statute date for the IRC 403(b) and IRC 457(b) examination to alpha code "EE" when you pick up a prior year and the related Form 941 statute has already barred.

The statute of limitations for Form 941 is extended by Form SS-10. See Employee Plans Examination Exhibits.

Form SS-10 may be secured by EP Examinations or by EO or FSL/ET.

When secured, and the group has a scanner, scan the Form SS-10 and save it in RCCMS Office Documents folder using the RCCMS Naming Convention, regardless of whether EO or FSL/ET secures it. If not scanned, place a copy of the SS-10 in the paper case file.

Initiator. Enter the examiner’s name and phone number.

Date. Enter the current date.

Taxpayer Name. Enter the name of the Taxpayer.

EIN OR SSN. Enter the TIN of the Taxpayer.

TRC. Highlight "560" and enter the new statute date as MM/DD/YYYY.

MFT Code. Enter 01 for Form 941.

Taxable Period. Enter the taxable period being extended as YYYYMM.

Send through secure email or efax the completed Form 3177 and Form SS-10 to the manager of the TE/GE Closing Group in Brooklyn. The efax number is 855-821-0089.

The Efax Cover Sheet should contain the following note: "Please update the statute on Form 941. The return is not controlled on AIMS."

Initially, EP Classification uses the normal statute date of the related Form 1040 for SEP, SARSEP, SIMPLE IRA, and 457(f) examinations for control purposes on RCCMS.

If you establish the related Form 1040 discrepancy adjustment on AIMS and RCCMS, you may update the statute date for the SEP, SARSEP, SIMPLE IRA, or IRC 457(f) examination to alpha code "EE" .

You may update the statute date for the SEP, SARSEP, or SIMPLE IRA examination to alpha code "EE" in RCCMS and NMF AIMS when you and your manager determine that the SEP/SARSEP complies with IRC 408(k) or the SIMPLE IRA complies with IRC 408(p).

There is no means to extend the NBTI statute. The statute can only be alpha coded to "EE" . The statute date may be updated to alpha code "EE" when examiner and manager determine it's warranted.

Clearly identify the need for a consent before you solicit it.

Obtain your group manager's approval before you request a taxpayer to execute a consent and document the approval in the case file.

See IRM 25.6.22, Extension of Assessment Statute of Limitations by Consent, for instructions on obtaining consents, and see IRM 25.6.22.2.1(3), Assessment, for a list of some conditions that allow a statute extension.

Appropriate transmittal letter; see below: IRM 4.70.12.3.7.6, Letters Used to Transmit Executed Consents.

Pub 1035, Extending the Tax Assessment Period, (latest revision).

Form 872, Form 872-H, or Form SS-10, whichever is appropriate.

Inspect the signed forms for errors, markings and edits, signature, date and title of an authorized individual.

Stamp all signed consent forms with the received date.

Submit all signed consent forms to your group manager for signature.

Upload executed consent form in the RCCMS case file.

Prepare and issue Letter 929 or Letter 1343 for the taxpayer, enclosing the executed extension form.

If there is a designated representative, prepare Letter 937-A enclosing a copy of the executed consent form.

Update the statute date on RCCMS (manually on Form 5595 if needed), Keep a copy of Form 5595 for the case file.

Complete the statute validation and request manager approval in RCCMS.

Document these actions on the CCR.

However, if the alterations on the consent are acceptable to the IRS, the taxpayer has initialed each alteration, and there is not sufficient time to perfect the consent, the IRS representative signing the consent may initial alterations and sign the consent.

Advice of TEGEDC must be sought before accepting an altered consent.

Solicit corrected consents to the taxpayer.

Solicit Form 56 if Form 872-H is received with Form 56.

Discuss the next course of action with your group manager.

If follow-up is the next course of action, issue Letter 928 Request to Extend Statute - Follow-up, enclosing Pub 1035.

Discuss the next course of action with your group manager.

Generally, inform the taxpayer that not extending a statute date could jeopardize its ability to appeal. Per IRM 8.20.5.3.1.2(2), Verifying Administrative File Contents, Appeals requires at least 365 days remain on the statute date when they receive the case. For cases previously returned to the examination group by Appeals, Appeals requires at least 180 days remain on the statute date. See IRM 8.20.5.3.1.2(2), Exception; and IRM 8.2.1.4(1), Step 1, Exception.

Copy of the executed consent form (Form 872, Form SS-10 or Form 872-H),

Pub 1035,

Form 56 (if the consent pertains to Form 1041 or Form 990-T), and

A self-addressed return envelope.

The form should be executed by an authorized IRS representative.

Upload the executed consent form in the RCCMS case file and mail the original back to the taxpayer.

A decision has been made that there are no other issues on the return which warrant an assessment,

180 days or less remain in the statute of limitations for assessment, and

The claimed refund/abatement has not been paid.

Alpha code "AB" designates that the statutory limitation pertaining to the period of time for assessment of tax for the taxable period is no longer pertinent because any applicable tax has been addressed in or waived by a closing agreement that has been properly executed by both the taxpayer and a delegated IRS official.

The month (MM) and year (YYYY) entries accompanying the AB alpha code are the month and year the statute expired, absent the properly executed closing agreement waiving the assessment statute of limitations.

An appropriate statement in the "Comments" section of the statute validation request would be: "Concurrence memorandum approved on [date signed by the Area Manager or Director]."

Alpha code "CC" may also be used with a tax return under joint investigation which has a statutory period for assessment that expired before the return was established on AIMS.

If Criminal Investigation withdraws from the joint investigation prior to the expiration of the statute, the statute controls should be updated to reflect the normal statute expiration date, or other applicable alpha code if some other exception to the normal three-year assessment statute applies.

The month and year appearing with alpha code "EE" represent the date that is six years from the date the SFR posted.

Update the case to alpha code "EE" through RCCMS by selecting alpha code "EE" on the "alpha day" line in the first RCCMS "General" tab. Do this after the SFR is processed, the return is posted and the examination is established on AIMS.

If you receive a a late filed return from a taxpayer, replace the alpha code "EE" statute designation with the true statute expiration date based on the date the return was received by the IRS.

Get AIMS transcripts throughout the examination, at least once every six months, to check for posting of a filed return (such as transaction code 976 or 977).

Do not use alpha code II for Forms 1040 related to Form 5329 examinations (for example, the statute date of Forms 1040 related to Forms 5329 under examination should no longer be updated to alpha code "II" ).

Alpha code "II" can be used when IRS determined there are no income tax issues of material tax consequence on the Form 1040 return, which require examination, or the assessment statute has already expired for the income taxes.

Since the extended tax assessment statute resulting from the non-filing of Other Taxes only applies to the tax liability relating to the Other Tax and does not apply to the income tax ASED, decide carefully that no income tax issues are present on the return before you update the statute to alpha code "II" .

If there are income tax issues of tax consequence based on inspection of the Form 1040 and the period for assessment of the income taxes has not expired, don’t update the statute to alpha code "II" . Take action to protect the income tax assessment statute of limitations.

If fraud is proven, there is no limit on the period for assessment.

The taxpayer cannot undo the fraudulent return by filing a non-fraudulent amended return. See Badaracco v. Commissioner, 464 U.S. 386 (1984).

If the original return is fraudulent, an increase in the tax liability can be assessed at any time.

As a general rule, the IRS relies on IRC 6501(c)(1) to keep the statute open only in situations where the normal three-year statute has otherwise expired.

Unless the exception stated in the next paragraph, only the examining group may request to update the statute to alpha code "PP" with no less than 60 days remaining on the statute andno more than 270 days remaining on the statute.

When you/your manager decide to pick up an examination of Form 5500 series for a prior year for which the statute of limitations has expired or has less than 271 days remaining, immediately update the statute of limitations to alpha code "PP" .

The group manager must determine with certainty that Form 1041 won’t be due for the period under examination, or if a timely referral is made to the Examination Functional Unit (such as SBSE), that EP is no longer responsible for protecting the statute of limitations on Form 1041.

All reasonable attempts were made to extend the ASED and documented the reasons for not extending.

Determine with certainty that applicable forms won’t be due for the period under examination, or if a timely referral is made to the Examination Functional Unit (such as SB/SE) that TE/GE is no longer responsible for protecting the statute of limitations on said forms.

If there’s to be a converted return, the tax will be within the tolerance described in IRM 25.6.1.13.2.4(1)a, Identifying Barred Statute Cases.

Have a valid reason to keep the examination open. Simply needing or wanting more time to close an examination without further justification isn’t a valid reason to use alpha code PP.

Follow the following steps for obtaining approval to use alpha code "PP" :

Include the following items in the Memorandum of Explanation:

If we later determine that alpha code "PP" was inappropriate, you may need to complete Form 3999 per IRM 4.70.12.3.7.8, Barred Statute Reporting - Form 3999, Statute Expiration Report.

Include a copy of the AIMS print in the case file (or RCCMS) to verify the date the statute was updated to alpha code "PP" .

The use of alpha code "PP" doesn’t relieve you from carefully monitoring normal statute expiration dates for all examined returns.

If neither the taxpayer nor the "material advisor" disclose the required information, the period of time for assessment of any tax with respect to the "listed transaction" is unlimited.

Other exceptions to the normal statutory period for assessment of tax may also apply to the tax return in question and IRC 6501(c)(10) does not shorten any other applicable period for assessment, such as the general three-year period prescribed by IRC 6501(a).

IRC 6707A(c)(2) defines a "listed transaction" as a transaction that is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction.

IRC 6501(c)(10) should generally be relied upon to extend the period for assessment only in those instances when the normal three year statute for the year has expired.

The statute may be updated to alpha code "WW" when you’ve determined that IRC 6501(c)(10) applies and the normal three-year assessment statute applicable to the entire return may be allowed to expire if: (1) a consent to extend the assessment statute for the entire return can not be obtained after timely and proper solicitation, (2) the case file is documented with adequate justification for letting the assessment statute applicable to the entire return expire in reliance on IRC 6501(c)(10) written TEGEDC approval is obtained in advance of the normal three-year assessment statute expiration date, and (4) written area manager approval is obtained in advance of the normal three-year assessment statute expiration date.

In order to determine if the one-year period under IRC 6501(c)(10) has started to run, consult Rev. Proc. 2005-26, or subsequently published guidance, to determine if the taxpayer or "material advisor" has complied with the requirements contained in the applicable published guidance.

The statute is one year after the earlier of the date the taxpayer discloses the transaction, as discussed in the above-referenced revenue procedure, or the date that a "material advisor" meets the requirements of IRC 6112 with respect to a request by the Secretary under IRC 6112 relating to the transaction.

The statute date determined under IRC 6501(c)(10) can be extended by consent agreement (Form 872) but the examiner needs to bear in mind that consent agreements to extend the IRC 6501(c)(10) statute date only apply to the period for assessing the liability related to the "listed transaction" .

The group manager will ensure the statute validation is completed and submitted for manager approval in RCCMS.

A copy of the AIMS print will be included in the case file (or RCCMS) to verify the date of the statute was updated to alpha code "WW" .

Alpha code "XX" should not be used to reflect an alpha code statute on AIMS.

Return preparer penalty controls for penalties under IRC 6694(a) and IRC 6695 are to reflect a date three years after either the due date of the return (without regard to an extension of time to file) or the date the return or claim for refund with respect to which the penalty is assessed was filed, whichever is later.

Alpha code "XX" can be used to designate that a return preparer penalty under IRC 6713 for preparer’s unauthorized disclosure or use of taxpayer information may be assessed at any time.

Alpha code "XX" can also be used to designate that the penalties under IRC 6700 and IRC 6701 for promoting abusive tax shelters and aiding and abetting understatement of the tax liability, respectively, may be assessed at any time.

For instructions on preparing a final adverse determination letter (FADL), see IRM 4.70.14.6.9.2, EO – Final Adverse Determination Letter Case Processing.

For instructions on preparing a SNOD, see IRM 4.8.9, Statutory Notices of Deficiency.

For instructions on preparation of Letter 3523, Notice of Employment Tax Determination Under IRC 7436. See IRM 4.8.10, Notice of Employment Tax Determination Under IRC 7436.

Arrange for pre-issuance review of the draft 90-day letter with TEGEDC. Refer also to the TE/GE Area Counsel Directory.

Review functions are not available for pre-issuance review.

With the group manager’s approval, send the completed 90-day letter package to the appropriate area address in order to obtain the signatures on the 90-day letter. Include pre-addressed mailing envelopes with the package.

Regarding the SNOD and Letter 3523, Notice of Employment Tax Determination Under IRC 7436, the area manager signs and issues the 90-day letter to the taxpayer via certified mail.

Regarding the FADL, forward the two copies of the FADL to the Manager, FSL/ET (or designee) for signature. The Manager, FSL/ET (or designee) will return the signed FADLs to the area office for issuance via certified mail.

The 90-day letter that was issued and the date issued. See the "Other" checkbox (or the "Stat Notice Issued Date" checkbox), located in the "Mandatory Review/Operations, Planning & Review" section of the form.

The recomputed statute date after issuing an SNOD or Letter 3523, Notice of Employment Tax Determination Under IRC 7436. See IRM 4.5.2-5, Computation of Statute Dates.

Consult with TEGEDC whether to issue a substitute transmittal letter in lieu of a 30-day letter.

If the substitute transmittal letter is to be issued, determine the content, format, timing and issuance of the letter with TEGEDC.

Include in the transmittal letter why a standard 30-day letter can’t be issued if so advised by Counsel.

Include the most recent Taxpayer Advocate Service (TAS) paragraph in the cover letter by reviewing TAS paragraphs in recently published 30-day letters.

Enclose your report of examination if so advised by Counsel.

Issue the substitute transmittal letter transmitting your report of examination, either before or on the day of issuance of the 90-day letter to which it pertains.

The statute control clerk or other designated employee will annotate the statute expiration date of all incoming returns on a case-tracking sheet.

The manager or a designated individual will verify the statute of limitations date and initial the tracking sheet as appropriate.

All cases received with less than 180 days on agreed cases or 365 days on unagreed cases should be assigned as soon as possible.

The statute control file will be checked at least monthly and, where required, the reviewers will secure consents extending the statute and update AIMS and RCCMS on assigned cases.

The three-year statute of limitations begins to run on the date the administrator files the Form 5500 series return. See IRC 6501(l)(1).

If the filed Form 5500 does not adequately disclose the prohibited transaction, the six-year statute period applies. The excise tax may be assessed at any time within six years after the later of the date the Form 5500 series return was filed or due.

It is the filing of the Form 5500 for the plan year in which the prohibited transaction occurs that starts the running of the statute of limitations for IRC 4975 excise tax imposed on a disqualified person for a discrete act. The Form 5500 filed for the year in which the discrete act occurred governs the Form 5330 statute of limitations for the initial year in which the prohibited transaction occurred, and also for all years within the taxable period. The taxable period ends on the earlier of: i) Mandatory Review mailing of the notice of deficiency (90-Day Letter), ii) the assessment of the excise tax under IRC 4975(a), or iii) the correction of the prohibited transaction.

The IRS must assess all excise taxes on a disqualified person for a discrete transaction, even those payable in later tax years, before the statute of limitations expires for the tax year in which the transaction initially occurred. The IRS can’t assess any excise tax on a prohibited transaction payable in any year, once the statute has expired for the disqualified person’s tax year in which the transaction occurred if that prohibited transaction is a discrete act.

See IRM 4.70.12.3.8.8, Securing Consents for Form 5330, for instructions on preparing Form 872 for a prohibited transaction that is a discrete act.

In addition to the original transaction, a new transaction is deemed to occur on the first day of each subsequent taxable year of the disqualified person. The amount involved is reported and taxed in the initial tax year and again in each subsequent tax year until the original transaction is corrected.

The filing of the Form 5500 return for the year in which the prohibited transaction first occurred starts the running of the statute of limitations for purposes of the tax on the actual transaction occurring in that plan year. It does not start the running of the statute of limitations for the transactions deemed to occur in subsequent plan years.

There are separate statutes of limitations for the transactions deemed to occur in each subsequent year. The filing of the Form 5500 return for each subsequent plan year starts the running of the statutes for transactions deemed to reoccur in that year.

Unlike a discrete act, the statutory period may expire for the act engaged in the first year, but IRS may assess the tax for subsequent acts deemed to have occurred for which the statutory period has not expired.

Excise tax related to a year for which the statute of limitations has expired may not be tiered into later years.

IRC 4973 – Excise Tax on excess contributions to certain tax-favored accounts and annuities.

IRC 4974 – Excise tax on certain accumulations in qualified retirement plans.

IRC 72(t) – Additional 10 Percent Tax on Early Distributions from Qualified Retirement Plans

The due date of the Form 5500 (the last day of the seventh month after the end of the plan year), or

The date the Form 5500 was filed.

The trust must file a Form 1041 for those years during which the plan is disqualified and the statute of limitations is open.

The Form 1041 is filed on behalf of the trust by the trustee.

The trust is responsible for paying the tax, and the trustee is responsible for making sure that the Form 1041 is filed and the taxes are paid.

The trustee (or authorized representative) must sign the statute extension form (Form 872-H) in order for the extension to be valid.

Form 872-H must be signed by a current trustee and dated, which may be a different individual than the person who was a trustee when Form 5500 was filed.

Form 872-H would be secured for the trust year ending 12/31/2015. If the Form 5500 for the 9/30/2016 plan year was filed timely on 4/30/2017, the statute of limitations for the trust year ending 12/31/2015 would expire on 4/30/2020.

Form 872-H would be secured for a short trust year (10/1/2015 through 12/31/2015) if the 9/30/2016 plan year is the initial year of proposed revocation or disqualification (for example, the plan sponsor failed to include eligible employees in the plan and you determined that this issue didn’t occur in the 9/30/2015 plan year).

If you need to extend the statute of limitations for the trust year ending 12/31/2016, you’d complete Form 872-H for the trust year ending 12/31/2016 for a full calendar year (1/1/2016 through 12/31/2016). The statute of limitations would be based on the Form 5500 for the plan year ending 9/30/2017. The statute of limitations for the trust year ending 12/31/2016 would expire on 4/30/2021 if the Form 5500 for the 9/30/2017 plan year was timely filed on 4/30/2018.

If the plan disqualification extends to an earlier plan year, Form 872-H would be secured for the entire 2015 calendar year (for example, the plan sponsor failed to amend the plan timely for EGTRRA, or the plan sponsor failed to include eligible employees in the plan in an earlier plan year).

Do not use the plan sponsor's EIN on Form 872-H.

If the trust does not have an EIN, then leave the "Taxpayer Identification Number" line on Form 872-H blank.

Research to determine if the trust has an EIN: Ask the plan sponsor or trustee if the trust has its own EIN. Also, review all documentation you received when reviewing the plan assets for the existence of a trust EIN.

If the trust does not have its own EIN, the taxpayer can obtain an EIN for the trust by: i) filing Form SS-4 (see Form SS-4 instructions) or ii) online at Form SS-4 Instructions . See IRM 4.70.12.3.8.13, Obtaining a Trust EIN.

List the name of the authorized individual's name (for example, group manager's name) who will sign the consent on the "IRS Official's Name" line.

List in the title of the authorized individual (such as Manager, Group 7672) on the "IRS Official's Title" line.

Be cautious and document the authority for the acting assignment in case the person’s authority to sign the consent is later questioned.

Attach the document giving authority to act to the IRS’s copy of the consent.

Use the name of the master trust.

Use the EIN of the master trust (all have an EIN).

Use the address of the master trust.

The issue giving rise to the excise tax has been corrected (in the case of IRC 4971 and IRC 4975 excise tax), and

The responsible party has filed Form 5330 (or signed and submitted Form 870-EP) for the correct amount of tax.

Form 5330 was filed,

The tax reported is incorrect, and

The statute of limitations is less than the number of days specified above.

List the complete name of the person or entity responsible for filing the Form 5330 on the "Name(s)" line.

List the EIN or SSN of the person responsible for filing the Form 5330 in the "Taxpayer Identification Number" block.

List the current address of the person or entity responsible for filing the Form 5330 on the address line.

For IRC 4975 excise tax, insert "IRC 4975 excise" as the type of tax.

For all other excise tax, insert "excise" as the type of tax.

Enter the tax period for which the statute is being extended.

Input a date on the "Expiration date" line of Form 872 that is far enough in the future to allow ample time for case processing.

Fill in the name and title of the authorized individual who will sign on behalf of the IRS (normally the group manager).

Persons officially acting for someone authorized to sign consents may sign consents. Be cautious and document the authority for the acting assignment in case the person’s authority to sign the consent is later questioned. Attach the document giving authority to act to the IRS’s copy of the consent.

Make sure the consent is dated on the "Date signed" line next to the signatures.

See Employee Plans Examination Exhibits for an example of Form 872 for a continuing prohibited transaction (IRC 4975 excise tax).

The preferred way to prepare an extension is to complete a restricted consent that specifies the type of tax (IRC 4975 excise) and the initial year in paragraph (1) of Form 872.

Include in the consent an additional paragraph (6) that lists each subsequent tax year beginning with the second tax year and ending with the current tax year.

See Employee Plans Examination Exhibits for an example of Form 872 for a discrete prohibited transaction.

More than one disqualified person may be involved in the same prohibited transaction. In such cases, all of the parties are jointly and severally liable.

Secure the consent to extend the statutory period from all disqualified persons who may be subject to tax on the prohibited transaction.

While each disqualified person must sign a separate consent, only one must pay the tax.

Obtaining a statute extension for the Form 5500 does not extend the statute of limitations for IRC 4975 excise tax on a prohibited transaction that occurred in that plan year.

List the name of the trust on the "Name(s)" line of Form 872-H.

List the employer identification number (EIN) of the trust in the "Taxpayer Identification Number" block.

List the current address of the trust on the address line.

Insert "income" as the type of tax.

Enter the tax period for which the statute is being extended.

Input a date on the "Expiration date" line of Form 872-H that is far enough in the future to allow ample time for case processing.

Type the name of the authorized individual's name (e.g., group manager's name) who will sign the consent on the "IRS Official's Name" line.

IRS Delegation Order 25-2 (see IRM 1.2.2.15.2) provides that group managers and Reviewers (grade GS-11 or higher) are authorized to sign consents (Form 872 or Form 872-H).

Persons officially acting for someone authorized to sign consents may sign consents. Be cautious and document the authority for the acting assignment in case the person’s authority to sign the consent is later questioned. Attach the document giving authority to act to the IRS’s copy of the consent.

Make sure the consent is dated on the "Date signed" line next to the signatures.

Prepare the consent using the same name(s) as that under which the return was filed, unless since filing, there has been a name change. If the name changed, prepare the consent using both names (for example, "Mary J. Smith, formerly Mary J. Brown" ).

For a jointly filed Form 1040, list both spouses’ names (for example, William L. Smith and Jane M. Smith).

List the EIN or SSN in the "Taxpayer Identification Number" block. For a jointly filed Form 1040, list only the primary SSN.

Insert "income" as the type of tax.

Use the taxpayer’s current address, rather than the address shown on the return. Determine the current address based on the best information available, including IDRS, correspondence from the taxpayer, etc.

Enter the tax period for which the statute is being extended.

State the year covered by the consent in full, including the month, day, and year.

Input a date on the "Expiration date" line of Form 872 that is far enough in the future to allow ample time for case processing.

Type the name of the authorized individual's name (for example, group manager's name) who will sign the consent on the IRS Official’s Name line.

The consent must be signed and dated by a corporate officer when extending the statute for a Form 1120.

The consent must be signed and dated by both spouses when extending the statute for a jointly filed Form 1040.

IRS Delegation Order 25-2 (see IRM 1.2.2.15.2) provides that group managers and reviewers (grade GS-11 or higher) are authorized to sign consents (Form 872 or Form 872-H).

Persons officially acting for someone authorized to sign consents may sign consents. Be cautious and document the authority for the acting assignment in case the person’s authority to sign the consent is later questioned. Attach the document giving authority to act to the IRS’s copy of the consent.

Make sure the consent is dated on the "Date signed" line next to the signatures.

Form 5329 was filed, and

The statute of limitations is less than the number of days specified above.

List the complete name of the person responsible for filing the Form 5329 on the "Name(s)" line.

List the SSN of the person responsible for filing the Form 5329 in the "Taxpayer Identification Number" block.

List the current address of the person responsible for filing the Form 5329 on the address line.

List "excise" as the type of tax.

Enter the tax period for which the statute is being extended.

Input a date on the "Expiration date" line of Form 872 that is far enough in the future to allow ample time for case processing.

Fill in the name and title of the authorized individual who will sign on behalf of the IRS (normally the group manager).

Persons officially acting for someone authorized to sign consents may sign consents. Be cautious and document the authority for the acting assignment in case the person’s authority to sign the consent is later questioned. Attach the document giving authority to act to the IRS’s copy of the consent.

Make sure the consent is dated on the "Date signed" line next to the signatures.

A "listed transaction" is a type of "reportable transaction" .

A "listed transaction" is defined as a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of IRC 6011.

The date on which the Secretary is furnished the information so required, or

The date that a material advisor meets the requirements of IRC 6112 with respect to a request by the Secretary under IRC 6112(b) relating to such transaction with respect to such taxpayer.

Include Counsel’s written approval in the penalty case file.

Get the Counsel attorney’s contact information from the EP Abusive Tax Avoidance Transaction (ATAT) Coordinator.

Solicit a statute extension if the statute will expire within 210 days on an agreed case and one year on an unagreed case.

A case is considered agreed if Form 870-EP is signed by the taxpayer.

List the complete name of the person or entity on the "Names(s)" line of Form 872.

List the employer identification number (EIN) or social security number (SSN) on the "TIN" line of the Form 872.

List the current address of the person or entity on the "Address" line of Form 872.

If you’re extending both the income tax statute and IRC 6707A penalty statute, list "Income and IRC 6707A Penalty" on the "Kind of tax" line of Form 872.

If you’re extending the IRC 6707A penalty statute only, list "IRC 6707A Penalty" on the "Kind of tax" line of Form 872.

Enter the tax period for which the statute is being extended on the applicable line of Form 872.

Enter a date on the "xpiration date" line of Form 872 that is far enough in the future to allow ample time for the penalty case to process.

Include in the consent an additional paragraph (6) that reads as follows: "Without otherwise limiting the applicability of this agreement, this agreement also extends to the expiration date identified in paragraph (1) above, the period of limitations for assessing any penalty pursuant to IRC section 6707A, Penalty For Failure to Include Reportable Transaction Information with the Return, with respect to the taxpayers, kind of tax and tax periods identified above."

To extend the statute for a partnership (Form 1065), the Form 872 should be signed by the General Partner and not the Tax Matters Partner. Since there isn’t a line on the Form 872 for a General Partner to sign, strike through the words "Corporate Name" and insert "Partnership Name" and strike through "Corporate Officer" and insert "General Partner" .

Type the name of the authorized individual's name (e.g., group manager's name) who will sign the consent on the "IRS Official's Name" line.

Per IRS Delegation Order 25-2, group managers and reviewers (grade GS-11 or higher) are authorized to sign consents (Form 872).

Make sure the consent is dated on the "Date signed" line next to the signatures.

See Employee Plans Examination Exhibits for an example of a completed Form 872 for a IRC 6707A penalty case.

If the return is charged out to an SB/SE group, that group must update the statute.

If the return is not charged out to any group (the examination is not established on AIMS by either EP, SB/SE or LB&I), follow the instructions in IRM 4.70.12.3.8.12(14), Securing Consents for IRC 6707A Penalties, to update the statute on Master File using Form 3177.

If Form 872 is secured only for the IRC 6707A penalty, update only Non-Master File AIMS for the penalty case and RCCMS.

Initiator – Enter the examiner’s name and phone number.

Date – Enter the current date.

Taxpayer Name – Enter the name of the Taxpayer.

EIN OR SSN – Enter the TIN of the Taxpayer.

TRC – Highlight "560" and enter the new statute date as MM/DD/YY.

MFT Code – Enter 02 for Form 1120, 06 for Form 1065, or 30 for Form 1040.

Taxable Period – Enter the taxable period being extended as YYYY/MM.

Efax the completed Form 3177, Form 872 and AMDIS print to the manager of the TE/GE Closing Group in Brooklyn. The efax number is 855-821-0089.

The Efax Cover Sheet should contain the following note: "Please update the statute on this return. The return is not controlled on AIMS."

See Employee Plans Examination Exhibits for an example of a completed Form 3177.

Send an encrypted email to *TE/GE CPC Case Assignment. The subject line of the email should include “Request for CP2100 recreates”. Include the PMFOLB prints for each tax year.

Review PMFOLS for the entity and tax years needed. This will ensure research has been conducted and that data exists for the entity and years requested.

Send an email to *TE/GE CPC Case Assignment. The subject line of the email should include “Request for IRPTR data”. Include the PMFOLS print for each tax year. Include the completed Form 15270 Information Returns Processing Transcript (IRPTR) Form.

Once the Excel report is created, it is sent to the recipient via Outlook or TEAMS, depending on the size of the file. In the event the file is too large for TEAMS, it can be saved and encrypted on a flash drive and then securely mailed to the recipient overnight.

Address the EEFax to the Kansas City Submission Processing Center.

Use the EEFax number for the Accounting Operations Department (888) 981-6493.

Send an email to *W&I KCSPC Non-Master File Team.

Include your name, address, phone and EEFax number.

Request in the bottom section of Form 10321, a Non-Master File transcript and list the name of the entity, TIN of the entity, MFT 28, and the tax period (e.g., "Please provide a Non-Master File transcript for XYZ Corporation; EIN XX-XXXXXXX; MFT 28; Tax period 201911" ).

Activate the PWMGT tool by using command code PWACT. Follow the on-screen prompts.

Use the PWMGT tool, skip the password field in SINON screen and answer the security question in the PWMGT field. Follow the on-screen prompts.

If yes, the organizational requirements have been satisfied.

If not, obtain the Determination Administrative File (determination file) in RCCMS.

If RCCMS doesn’t include the determination file, request a copy of the file by sending a secure email, attaching Form 14264, Request for EP or EO Administrative File form, to *TEGE Determinations Processing.

If the determination file indicated the organization attested it made conforming amendments as part of the determination process, but the examination reflects no attempt to implement the required changes, propose revocation after discussion with the manager.

If the organization attempted to implement the required changes but wasn’t successful, (e.g., the organization added a dissolution clause, which the examiner concludes still doesn’t satisfy the organizational test), inform the organization that it must amend its organizing document. Prior to closing the case, secure a conformed copy of the amendments consistent with IDR procedures.

If the determination file shows that the organization applied on Form 1023-EZ and doesn’t have organizing documents, propose revocation after discussion with the manager.

Close the case with DC 19, Amendment Secured, unless other issues require a higher priority DC.

Close the case with the proper revocation DC.

ITG is also responsible for ensuring that the IRS is in compliance with relevant Presidential Executive Orders that outline the relationships and protocols required in working with tribes.

The ITG staff is specially trained in the unique areas of tax law and protocol that apply to Indian tribes

High volume of expenditures, both payroll and non-payroll.

Involvement with public sector employers and employees.

Section 218 Agreements.

Mandatory 1991 Social Security provisions for those who aren’t members of a public retirement system.

Mandatory Medicare.

Reason exam was selected

Materiality of the issue (dollar amount, permanency, timing)

Impact on taxpayer compliance or taxpayer behavior

Risk analysis: resource requirements (costs) vs. expected return on pursuing (benefits)

80/20 Concept: The goal of any examination is to determine compliance and/or the substantially correct tax liability. The "80/20 concept" is "value-added" decision making that weighs the impact of our decisions (potential results) with our investment of additional case time (cost). Apply the 80/20 concept throughout the exam to reevaluate the examination scope. Consider the facts and circumstances, evaluate internal controls, and use professional judgment to determine whether to expand or contract the scope. Document the reasons for expanding or contracting the scope on the case chronology record (CCR) (Form 9984, or Form 5464).

Mid-Exam Decision Point (50% Rule): This refers to performing a risk-based analysis of the examination at its mid-point. Determine the mid-point of the examination based on the number of issues classified/identified or the number of hours you’ve spent. At the mid-point of the examination, determine whether to examine the remaining classified/identified issues based on the facts and circumstances, evaluating internal controls and your judgment.

Issue Letter 5859, Full Bond Redemption - Compliance Issue Identified.

Report the Principal amount of bonds redeemed and the present value of the tax on the interest that would have accrued on the bonds to their stated redemption date in the RCCMS closing record.

On RCCMS, use disposal code 115, Full Bond Redemption Without Agreement, and ARDI Code 1-Fully Paid.

Issue closing letter (Letter 6089, Examination Closed - No Change).

Close on RCCMS with disposal code 107, No Change.