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Issue regulations clarifying that written supervisory approval required under IRC § 6751(b) must occur prior to the first time the IRS formally communicates the proposed penalties to the taxpayer in writing.
IRS RESPONSE TO RECOMMENDATION: None given.
CORRECTIVE ACTION: N/A
TAS RESPONSE: Regulations will benefit taxpayers by clarifying the timing for the supervisory approval.
ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted
OPEN or CLOSED: Closed
DUE DATE FOR ACTION (if left open): N/A
Update the IRM to require written supervisory approval not just “prior to the issuance of the Statutory Notice of Deficiency (SNOD)” but instead “prior to the first time the penalties are communicated to the taxpayer formally as part of a written communication that advises the taxpayer the penalties will be proposed.”
IRS RESPONSE TO RECOMMENDATION: None given.
CORRECTIVE ACTION: N/A
TAS RESPONSE: Removing the misleading guidance from the IRMs will prevent employees from securing supervisory approval for penalties at a time that is too late.
ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted
OPEN or CLOSED: Closed
DUE DATE FOR ACTION (if left open): N/A
