4.90.10 Statute Control Procedures

Manual Transmittal

October 17, 2016


(1) This transmits revised IRM 4.90.10, Federal, State and Local Governments, Statute Control Procedures.

Material Changes

(1) The following IRM sections were renumbered and many were also modified with revised or additional content:

Previous IRM Subsection New IRM Subsection and added Civil Penalty Cases. thru (11) thru (o) thru (7) (a) thru (i) Removed and changed title. thru (3) and changed title.
none (1) thru (3) and changed to five days from 10 days. and added Assistant Deputy Commissioner, GE/SS.

(2) Director, Government Entities replaced with Assistant Deputy Commissioner, Government Entities/Shared Services (GE/SS).

(3) Changes made to comply with Office of Appeals requirement that 410 days remain on the statute of limitations on closed unagreed cases going to Appeals.

(4) Increases the days required on the statute of limitations from 240 to 270 and also addresses 100% electronic cases.

(5) Reference to Exempt Organizations status code removed.

(6) Updated to meet the requirements of P.L. 111-274 (H.R. 946), the Plain Writing Act of 2010. The Act provides that writing must be clear, concise, well-organized, and follow other best practices appropriate to the subject or field and intended audience.

Effect on Other Documents

This supersedes IRM 4.90.10, dated December 6, 2013.


Tax Exempt Government Entities
Government Entities/Shared Services
Federal, State and Local Governments

Effective Date


Paul A. Marmolejo
Director, Federal, State and Local Governments
Government Entities/Shared Services
Tax Exempt Government Entities


  1. This section establishes uniform FSLG procedures for the control of the Assessment Statute Expiration date (ASED). Everyone plays an important role in monitoring the groups’ statute control process:

    • Managers (e.g. Field Manager, CPM Manger, etc.)

    • Management Assistants (MA)

    • Specialists

  2. Specialists and Field Managers (Managers) must exercise due diligence to ensure that valid consents to extend ASED are secured and executed.

  3. Short statute cases are defined as cases with fewer than 270 days remaining on the ASED.

  4. Statute controls are required for the following activities under audit:

    • Tax Returns

    • Civil Penalty cases

  5. Statute rules that apply to delinquent returns and substitutes for return can be found in IRM 25.6.

  6. The ASED extension should not be longer than is needed to complete the audit and administratively close the case.

  7. Use the proper extension form to extend the ASED:

    Form Form Title Extends
    Form SS-10 Consent to Extend the Time to Assess Employment Taxes The following taxes:
    • Federal Contributions Act (FICA)

    • Federal Unemployment Contributions Act (FUTA)

    • Income Tax Withholding provisions (FITW)

    • Railroad Retirement Tax ACT (RRTA)

    • Back-up Withholding (BUWH)

    Form 872 Consent to Extend the Time to Assess Tax
    • ASED for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.

    • See IRM, Form 872, Consent to Extend the Time to Assess Tax, for Form 1042.

    Form 872-B Consent to Extend the Time to Assess Miscellaneous Excise Taxes
    • ASED on IRC 6721 and IRC 6722 penalties.

    • See IRM, Penalties under IRC 6721 and 6722.

  8. Additional guidance:

    • IRM 4.23.14, Statute Control and Extension

    • IRM 25.6, Statute of Limitations

Responsibility of Field Managers

  1. Field Managers (Managers) have these primary responsibilities for statute controls for activities in the group’s unassigned inventory:

    • Initiating

    • Monitoring

    • Maintaining

  2. All tax returns for which issues are being considered must be controlled on RCCMS and AIMS and the ASED must be protected.


    Civil Penalty activities are not controlled on AIMS but still must be controlled on RCCMS and their ASEDs must be protected.

  3. Ensure the ASED is accurate on both systems, including any required alpha code.

  4. Ensure Specialists:

    • Understand the law about statutes.

    • Maintain required statute controls.

    • Ensure that cases are timely closed to protect the ASED.

  5. Managers:

    1. Review and reconcile the monthly AIMS Table 4.0, Returns with Statute Date Pending, and Reporting Compliance Case Management System (RCCMS) for returns with normal ASED expiring within 270 days.

    2. Ensure that an RCCMS statute listing is generated and given to Specialists to prepare Forms 895, Notice of Statute Expiration, on all activities (returns and civil penalties) where the normal ASED will expire within 270 days.

    3. Ensure that Specialists prepare and submit Forms 895 when there are 270 or fewer days remaining on the normal ASED.

    4. Review Forms 895, including comments, account information (e.g. BMFOLT) and returns, if available, to verify the accuracy of the ASEDs.

    5. Initial and date Forms 895 to indicate verification of the ASEDs.

    6. Return initialed copies of Forms 895 to Specialists to place in the RCCMS case files and attach to the cover of paper case file folders when applicable.

    7. Keep a copy of the initialed Forms 895 in the group’s statute control file.

    8. Review the statute control file once a month and take necessary actions to expedite case closure for pending ASEDs.

    9. Ensure the Forms 895 stay with the case files and are attached to paper case files closed or transferred with fewer than 270 days remaining on the normal ASED.

    10. Ensure that cases have at least the following number of days remaining on the ASEDs when closed from the group:

      • 180 days - agreed cases

      • 270 days - unagreed/unprotested cases

      • 410 days - unagreed/protested (Appeals) cases

    11. Ensure that paper case files with fewer than 270 days remaining on the ASED are placed in red folders.


      Remove cases from red folders If the ASED is extended to a period greater than 270 days.

    12. Ensure that the transmittal email (for 100% electronic cases) and the Form 3210, Document Transmittal, (for paper case files) clearly state "SHORT STATUTE CASE-SOL=DD/MM/YYYY" for cases with fewer than 270 days remaining on the ASEDs.

    13. Call and send a follow-up email notifying the receiving manager that the case is being transferred or closed from the group with fewer than 270 days remaining on the ASED.

    14. Hand carry, use overnight mail or an express delivery service to ship paper case files with fewer than 180 days remaining on the ASED and then follow-up to ensure they are received timely.

    15. Provide additional instructions to Specialists, as needed, to protect the ASED.

Responsibility of Specialist

  1. Specialists are responsible for these statute controls for all activities in their inventory:

    • Verifying the accuracy of the ASED.

    • Protecting the ASED for prior and subsequent tax periods and related activities that are open.

    • Monitoring and maintaining appropriate statute controls.

  2. Specialists:

    1. Review the ASED and account information (e.g. BMFOLT) to determine the correct ASED for all activities in their inventory.

    2. Prepare, sign, date and submit Forms 895 to the Manager for activities with fewer than 270 days remaining on the normal ASEDs.

    3. Review the monthly RCCMS statue listing and annotate the following:

      • Update/correct statute date.

      • Date consent to extend the statute was solicited.

      • Type of closure expected (e.g. agreed, unagreed or no change).

      • Estimate case completion date.

      • Estimate date 30-day letter, if applicable, will be submitted to Manager for review (if unagreed closure expected).

      • Date case was submitted to Manager for closure.

      • Comments explaining any unusual situations or considerations.

    4. Secure email the RCCMS statute listing to the Manager and Management Assistant (MA) within two weeks.

    5. Consider requesting the taxpayer’s consent to extend the ASED if within 365 days of expiration.


      Specialist must get their Manager’s written approval before soliciting consents. See IRM 25.6.22, Extension of Assessment Statute of Limitations By Consent.

    6. Note the reasons in the "Remarks" section of all copies of Forms 895 if they decide not to request the taxpayer’s consent to extend the ASED.

    7. Take necessary actions to promptly close the case if taxpayer declined to consent to extending the ASED.

    8. Prepare a memo if it is determined that an ASED will be updated from a live statute to an alpha code statute. Then:

      • Ask Managers to sign the memo and send to the Field Operations Manager (FOM).

      • Promptly update ASED with the applicable alpha code on RCCMS and AIMS.

      • Post the signed memo to the RCCMS Office Documents folder.

      • Note all actions on the case activity record.

    9. Discuss the need to control prior years’ returns with Manager. Document Manager’s approval/disapproval in the case activity record. If the Manager approves, then within five days:

      • Establish the prior years’ returns on RCCMS and AIMS.

      • Prepare and submit Forms 895, if applicable, to the Manager.

Responsibility of Management Assistant

  1. MAs:

    • Generate a list of RCCMS activities by Specialists with statute dates expiring within 270 days each month on (or about) the Web-Based Employee Technical Time System (WebETS) cycle ending date.

    • Secure email the RCCMS statute listing to each employee within five days of the WebETS cycle ending date and cc the Managers.


      Specialists must respond with the information within two weeks.

Responsibility of Compliance and Program Management (CPM)

  1. The CPM Manager is responsible for maintaining statute controls for returns under CPM’s jurisdiction and will:

    1. Verify the ASED for all cases received from groups.

    2. Ensure that all cases are promptly assigned to a reviewer and that reviewer promptly reviews and closes cases that meet the following ASED criteria:

    • 180 days - agreed cases

    • 270 days - unagreed cases not going to Appeals

    • 410 days - unagreed cases going to Appeals

All Cases with ASEDs of 270 or Fewer Days

  1. All files sent to CPM or the Closing Unit must include:

    • Forms 895 completed with current statute information, signed and placed as first item outside the folder.

    • Form 3198-A, TE/GE Special Handling Notice, placed on the outside of the case folder.

    • Current INOLES and AMDIS (no more than 10 days old).

    • Proper updates to AIMS through RCCMS for status code 20 (to CPM), 51 (closing unit) or 55 (if ever in status code 38).

    • The ASED clearly annotated in the email and/or Form 3210.

  2. Cases with fewer than 270 days on the ASED received in CPM may be returned to the group with Form 3990, Reviewer’s Report, with a copy sent to the FOM, if:

    • No prior notification given. See IRM (2).

    • No indication of timely solicitation of a statute extension.

    • Unexplained delays in processing.

  3. When closing cases with fewer than 270 days on the ASED to CPM or the Closing Unit, the RCCMS case closing comments dialog box must clearly indicate the ASED to alert the receiver that the case requires expeditious handling.

ASED Required Time Frames for Cases Closing

  1. Cases going to Appeals must have 410 days remaining on the ASED when the case is closed to CPM.

  2. All other cases, including unagreed cases not going to Appeals and deletion requests (Form 10904 , Request for Record Deletion from AIMS), must have the following minimum number of days left on the ASED when the group closes them to CPM or the Closing Unit.

    Days Managers will call and follow-up email notifying the Receiving Manager: Managers:
    180 to 270 When closing the case either to CPM or the Closing Unit.
    • Written notification (e.g. email) from Managers to the CPM Manager regarding the pending submission of the case.

    120 to 179 Before transferring the case on RCCMS
    • Hand carry, use overnight mail or use express delivery service that can be tracked to ship the case.

    • Follow up to ensure the case is received timely.

    61 to 119 days With a copy to the:
    • FOM

    • CPM Manager

    • Indicate whether an assessment is to be made.

    • Hand carry, use overnight mail, or use an express delivery service that can be tracked to ship the case.

    • Follow up to ensure the case is received timely.

    60 days or less Receiving manager with a copy to the:
    • FSLG Director

    • FOM

    • CPM Manager

    • Assistant Deputy Commissioner, GE/SS

    • Monitor (CPM Manager and Managers) the case to AIMS closure to ensure assessments are completed timely.

    • Hand carry, use overnight mail or use an express delivery service that can be tracked to ship the case.

    • Ensure the case is received timely.

Procedures for AIMS Table 4.0

  1. AIMS Table 4.0, Returns with Statute Pending, is a computer generated listing from AIMS data showing returns in all status codes where an examination is charged to an examination group on AIMS and:

    1. The ASED has expired.

    2. The ASED is due to expire within 210 days or less.

    3. The statute is extended due to special characteristics (e.g. claims, non-filed returns, etc.).

  2. The FSLG AIMS Coordinator is responsible for receiving, distributing and following up on Table 4.0.

    1. Each month, the FSLG AIMS Coordinator will forward AIMS Table 4.0 to all groups (including CPM) with a due date of two weeks to take necessary actions and submit the completed Table 4.0 to the CPM Manager.

    2. Managers, in collaboration with MAs and Specialists, complete this report.

Group Responsibilities

  1. Upon receipt of Table 4.0, check the listed cases against the group’s RCCMS inventory listing and the returns or return information, such as BMFOL or TXMOD, to ensure:

    • Current ASEDs are reflected on the table.

    • Proper statute control actions are taken.

  2. To work Table 4.0 correctly, the Manager must ensure that the following steps are taken and the proper comments written next to each line item.

    1. Each AIMS account listed must be reviewed.

    2. If the case is still in the group's inventory and the ASED is accurate, write "correct" in the comment section.

    3. If the case was closed from the group, write "C" and the date closed in the comment section of Table 4.0. Ensure that the statute has been updated on AIMS. For cases that have been out of the group for more than 30 days, contact the receiving manager to verify the case was received.

    4. If a statute extension was secured and the statute updated on RCCMS and AIMS, then:

      • Line through the previous ASED.

      • Record the updated ASED in red.

      • Provide an AMDIS print as verification.

    5. If a statute extension was requested, but not yet received, write "SE" and the date requested.

    6. If the ASED, organization code or status code on RCCMS and AIMS is incorrect, indicate the correct information in red . Provide an AMDIS print and/or appropriate document as verification that RCCMS and AIMS have been corrected.

  3. If there is an AIMS account on Table 4.0 where the group cannot find any documentation for that specific AIMS account, but did find information on a related AIMS account, provide copies of that information to the AIMS Coordinator.

  4. If an AIMS account on Table 4.0 cannot be located in the group’s inventory and there is no information that indicates it was previously closed, write no record or NR in the Comments. Use a no record (NR) comment only when Managers are certain that the case was never in the group.

  5. Managers must sign the completed Table 4.0 and send it with the required documentation to the CPM Manager by secure e-mail or e-fax within two weeks.

CPM Responsibilities

  1. CPM Manager sends the AIMS Tables 4.0 received from the groups to the FSLG AIMS Coordinator.

  2. The FSLG AIMS Coordinator must:

    1. Analyze each table to ensure that proper and timely actions have been taken by the Manager.

    2. Research cases indicated as closed from the groups for more than five weeks and those indicating no record on Integrated Data Retrieval System (IDRS). If the research shows the case is:

      • Closed, annotate the Table 4.0 and take no further action.

      • Opened, coordinate with the Group to resolve the issue.

    3. Return the completed AIMS Tables 4.0 to the CPM Manager within two weeks.

  3. CPM Manager will follow-up on any significant problems identified, including groups that did not submit Tables 4.0.

Expired Statute Reports

  1. This section provides information on expired ASEDs.


  1. A preliminary Form 3999 , Statute Expiration Report, is completed and forwarded to the FOM or the CPM Manager within five days of discovering an expired ASED.

  2. A final Form 3999 can be prepared as the initial report if all of the necessary information is available and the five day time-frame can be met.

  3. The final Form 3999, if not submitted as the initial report, is prepared within 60 days of the date of the preliminary report.

Responsibility for Preparation of Form 3999

  1. The individual discovering the expired ASED is responsible for preparing the preliminary Form 3999. This does not indicate that this person was solely, if at all, responsible for the ASED. This person should prepare a narrative of the facts and circumstances, with a time line, leading up to the expired ASED. The narrative is based on a review of the paper and/or electronic case file, IDRS data and group statute control files.

  2. The manager of the function/area having possession of the return or accounts (e.g. AIMS and RCCMS) when the ASED expired is responsible for preparing the final Form 3999.

Instructions for Preparation of Form 3999

  1. When completing Form 3999, be sure to address the following line items:

    Box # Entry
    Box 12
    • (a) Year or Period(s) Expired

    • (b) Date of Statute Expiration

    • (c) Amount of Deficiency or (Overassessment)

    Box 13
    "Status and Location of Return at Time of Expiration"
    • State the RCCMS and AIMS status code, physical location of the case file, and type of employee who had control of the case.

    • Use the location of the return at date of discovery if it is not determinable where a case was on the date of expiration.

    • Include any reference that might indicate location and status prior to expiration.

    Box 14
    "The Statute expired because of..."
    • This section must show a chronological narrative of the status, location and types of employees controlling or affecting the physical case file since it entered the examination stream.

    • Once this is performed, provide a summary statement referencing these facts and primary and secondary factors resulting the expired ASED.

    Box 15
    "Corrective action taken or recommended to prevent recurrence of statute expiration."
    • State systemic or personnel changes to be made to this problem in the future.

    • Include each type of employee and each function considered responsible for the ASED expiration.

    • Explain if disciplinary action was considered and recommended without identifying the responsible employee. The disciplinary action taken will be the subject of a separate report.

    Signatures Required
    • Manager of the group that identified the expired ASED.

    • Manager of the group that had control of the account the time the ASED expired.

    • FOM (if statute expired in a field group).

    • FSLG Director.

Preliminary Report, Form 3999

  1. Boxes 1 through 12 are completed when the preliminary report is submitted.

  2. The preliminary report includes a:

    • Brief narrative of why the ASED expired.

    • Time line illustrating the processing of the case leading to the expiration of the ASED.

  3. Distribute the original and three copies of the completed preliminary report as follows:

    • The original to the FSLG Director.

    • A copy for the case file.

    • A copy for the Manager of the group that identified the expired ASED.

    • A copy for the Manager of the group that had control of the account the time the ASED expired.

    • A copy for the FOM (if the statute expired in a field group).

Final Report, Form 3999

  1. Complete all items including the following additional information:

    1. Any change in the facts of the case discovered subsequent to the initial report (if applicable).

    2. Narratives from other affected functions cited in the preliminary report (as applicable).

Distribution of Completed Final Form 3999

  1. When the final Form 3999 is completed, distribute the original and three copies as follows:

    1. The original to the Assistant Deputy Commissioner, GE/SS.

    2. A copy for the FSLG Director.

    3. A copy for the case file.

    4. A copy for the CPM Manager, who must maintain copies for trend review.

    5. A copy for the Manager of the group that identified the expired ASED.

    6. A copy for the Manager of the group that had control of the account the time the ASED expired.

    7. A copy for the FOM (if the statute expired in a field group).


  1. The Assistant Deputy Commissioner, GE/SS must resolve any jurisdictional disputes.