Part 5. Collecting Process

Chapter 7. Trust Fund Compliance

Section 6. Trust Fund Penalty Assessment Action

5.7.6  Trust Fund Penalty Assessment Action

5.7.6.1 Taxpayer's Response to Letter 1153(DO)
5.7.6.2 Revenue Officer Assessment Actions
5.7.6.3 Technical Services - Advisory (Control Point Monitoring — CPM) Actions for Assessment
5.7.6.4 Quick and Prompt Assessment Actions
5.7.6.5 Case File Documentation
5.7.6.6 Retrieving TFRP Case Files

5.7.6.1  (02-01-2007)
Taxpayer's Response to Letter 1153(DO)

1. After Letter 1153(DO) and Form 2751, Proposed Assessment of Trust Fund Recovery Penalty, have been properly delivered (IRM 5.7.4.7), the responsible party has 60 days (75 if the letter was addressed outside of the United States) from the date of the mailing of the notice or the date of personal delivery to respond.

   A protest is timely if it is postmarked or mailed by certified or registered mail, so that the mailing date can be proven, on or before the 60th day after the date the Letter 1153(DO) was mailed or personally delivered. A postage meter stamp is not evidence of when a request for appeal was mailed; it merely establishes when it was stamped.

   In determining the timeliness of the appeal, the guidelines in IRC 7503 should be followed which state in part:

   When the last day prescribed under authority of the internal revenue laws for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday.

   Allow an additional 5 days beyond the response period allowed in the Letter 1153(DO) to enable the Service to receive and process all timely mailed requests.

2. The responsible party can take the following actions in response to Letter 1153(DO):

   • Agree to the assessment by signing Form 2751

   • Appeal the proposed assessment

   • Provide no response

3. The ATFR application will not allow you to proceed until one of the following actions occurs:

   • The 60 day time period expires

   • Form 2751 is signed (which waives the 60 day restriction on notice and demand if signed by the taxpayer — IRM 5.7.4.7(2) and (3))

   • A protest letter is received

   • A jeopardy assessment is being made

5.7.6.1.1  (04-13-2006)
No Response (Unagreed) Cases

1. If the taxpayer fails to respond to Letter 1153(DO) within 60 days after the mailing or personal delivery date, (75 if the letter was addressed outside of the U. S.) plus five days to allow the Service to receive and process all timely mailed protests, then the case is considered unagreed.

2. For regular assessments, follow the procedures in IRM 5.7.6.2 and 5.7.6.3 for requesting assessment of the TFRP. For cases requiring quick or prompt assessment action follow the procedures in IRM 5.7.6.4.

   Note:

   Quick assessment action should be taken when there are less than 30 days remaining on the ASED; prompt assessment action should be taken when immediate collection action is needed on the account.

3. Follow the procedures in IRM 5.7.7.2 for processing payments received from the responsible party prior to the actual assessment of the TFRP.

4. If the taxpayer is unable to full pay the proposed assessment, follow the instructions in IRM 5.15.1, Financial Analysis, to determine the appropriate case resolution based on an analysis of the taxpayer's financial condition. This may include a pre-assessed CNC or pre-assessed installment agreement or, if appropriate, taking the necessary actions to have the TFRP account assigned via ICS.

5.7.6.1.2  (04-13-2006)
Agreed Cases

1. If the taxpayer agrees to the assessment by signing Form 2751, prepare Letter 1155(DO) and deliver the letter to the responsible person no later than 14 calendar days after receipt of the signed Form 2751. Prepare the letter using the ATFR application whenever possible. Document the case file with an explanation if Letter 1155(DO) is delivered more than 14 days after receipt of the signed Form 2751.

   Note:

   If the responsible person has filed bankruptcy and the automatic stay is still in effect, modify the letter to delete any reference to the Service collecting the TFRP, to any actions the taxpayer should take to delay the Service's collection activity, and to any collection actions the Service may take in jeopardy circumstances. The modified version will print from ATFR if the responsible person's bankruptcy information is input.

2. Input the date the Form 2751 was signed onto the ATFR application.

3. For regular assessments, follow the procedures in IRM 5.7.6.2 and 5.7.6.3 for requesting assessment of the TFRP. For cases requiring quick or prompt assessment action follow the procedures in IRM 5.7.6.4.

   Note:

   Quick assessment action should be taken when there are less than 30 days remaining on the ASED; prompt assessment action should be taken when immediate collection action is needed on the account.

4. Unless the responsible person has filed bankruptcy, request full payment from the responsible person when he or she agrees to the assessment by signing Form 2751.

   Note:

   Contact Insolvency for advice on how to proceed on cases where the responsible person has filed bankruptcy; see IRM 5.7.4.8.4 for information on ensuring a timely proof of claim is prepared for these cases.

5. Follow the procedures in IRM 5.7.7.2 for processing payments received from the responsible party prior to the actual assessment of the TFRP.

6. If the taxpayer is unable to full pay the proposed assessment, follow the instructions in IRM 5.15.1, Financial Analysis, to determine the appropriate case resolution based on an analysis of the taxpayer's financial condition. This may include a pre-assessed CNC or pre-assessed installment agreement or, if appropriate, taking the necessary actions to have the TFRP account assigned via ICS.

5.7.6.1.3  (04-13-2006)
Appealing the Proposed Assessment

1. Letter 1153(DO) advises the responsible party of his or her appeal rights. The form that the appeal must take is based on the dollar amount of the proposed assessment.

2. Letter 1153(DO) also advises the responsible party that they may contact the revenue officer within ten days of the Letter 1153(DO) if:

   • They don't agree with the proposed assessment

   • Have additional information to support their case

   • Wish to try to resolve the matter informally

     Note:

     In order to preserve their appeal rights, the responsible party must mail (or fax, if applicable) a written appeal within 60 days of the mailing or personal delivery of the letter (75 days if the letter is addressed to the responsible party outside of the United States). If the revenue officer does not agree with the information submitted informally, then the revenue officer should advise the taxpayer that they must follow the appeal procedures included in the Letter 1153(DO).

3. TFRP cases are also eligible for Fast Track Mediation (FTM). This program is designed to expedite case resolution since the entire process normally takes 30-40 days to complete. Additional information can be found in Publication 3605, Fast Track Mediation - A Process for Prompt Resolution of Issues. Publication 3605 should be provided to the taxpayer to explain the FTM process.

4. The ASED is only extended for cases where the taxpayer files a proper appeal within the allowable time period; FTM has no impact on the ASED or the regular appeals procedures. Advise the taxpayer that even if they choose FTM, they must continue to follow the procedures in Letter 1153(DO) by filing the appropriate request within 60 days of issuance of the Letter 1153(DO) if they wish to have the case considered by the Appeals office in case the FTM is not resolved in their favor.

5. Both the taxpayer and the revenue officer must agree to mediate. The taxpayer must have completed a Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Tax, and supplied all requested back-up documentation related to the trust fund recovery penalty investigation. To initiate the FTM process, the revenue officer will complete an "Agreement to Mediate" and a " Summary of Issues" and forward the documents to Appeals within three days of securing the taxpayer's signature.

6. If the parties do not reach an agreement, then the case will be forwarded to Appeals if the taxpayer followed the instructions in Letter 1153(DO) regarding the formal appeal process. The case will then be assigned to a different Appeals officer. If the taxpayer did not follow the formal appeals process, the case should be forwarded for assessment. The taxpayer may still file a claim for refund and abatement after assessment.

7. If the revenue officer agrees with the information that was submitted informally or if the parties reach an agreement through the mediation process, then the revenue officer should change the determination by following the procedures in IRM 5.7.6.1.7.

8. If the revenue officer does not change the determination based on the information submitted informally, he or she should advise the taxpayer to follow the formal protest procedures outlined in Letter 1153(DO) in order to protect their appeal rights.

9. If the amount of the period that the responsible party is protesting is:

   Dollar Amount Type of Appeal

   $25,000 or Less	Small Case Request
   More than $25,000	Formal Written Protest

   Note:

   If one period is more than $25,000 the taxpayer must submit a formal Written Protest.

10. IRM 5.7.6.1.4 contains the guidelines on the information that the taxpayer should include in a Small Case Request. IRM 5.7.6.1.5 contains the information that the taxpayer should include in a Formal Written Protest. The responsible party should submit any additional information or documentation that he or she wants the Settlement Officer/Appeals Officer to consider.

    Note:

    Usually appeals of penalty cases involve issues of responsibility and/or willfulness or how the penalty was calculated.

5.7.6.1.4  (04-13-2006)
Small Case Request

1. The potentially responsible party should submit a Small Case Request in duplicate and should include:

   • A copy of the Letter 1153(DO) or the responsible party's name, address, Social Security number, and any other identifying information

   • A statement that the responsible party wants an Appeals conference

   • A list of issues the responsible party disagrees with and an explanation of why he or she disagrees

5.7.6.1.5  (04-13-2006)
Formal Written Protest

1. The potentially responsible party should submit a Formal Written Protest in duplicate and should include:

   • The responsible party's name, address, and Social Security number

   • A copy of the Letter 1153(DO) or date and number of the letter

   • A statement that the responsible party wants a conference

   • The tax periods involved (from Form 2751)

   • A list of issues the responsible party disagrees with and an explanation of why he or she disagrees

     Note:

     The following statement must be added to declare that the information submitted in this item is true: "Under penalties of perjury, I declare that I have examined the facts presented in this statement and any accompanying information, and, to the best of my knowledge and belief, they are true, correct, and complete."

   • If applicable, the law or other authority the responsible party is relying on to support his or her arguments along with an explanation of what the law is and how it applies

2. If an authorized representative (Form 2848, Power of Attorney and Declaration of Representative, or a properly written power of attorney or authorization is acceptable) prepares and signs the protest for the responsible party, he or she must substitute a declaration stating:

   • That he or she submitted the protest and accompanying documents

   • Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct

5.7.6.1.6  (04-13-2006)
Receipt of Protest

1. If the responsible party responds to Letter 1153(DO) within the appropriate time frames (see IRM 5.7.3.6.2 and IRM 5.7.6.1(1)), review the request within 10 days of receipt to determine if the information is complete as discussed in IRM 5.7.6.1.4 (Small Case Request) or 5.7.6.1.5 (Formal Written Protest).

   Note:

   A protest filed within the appropriate timeframe is considered timely even if it is incomplete. Retain the protest mailing envelope (or original faxed document) so the timeliness of the protest can be determined. Protests that are filed timely on cases where the Letter 1153(DO) was delivered properly extend the ASED until 30 days after Appeals' "final administrative determination" (IRM 5.7.3.6.2).

2. If the information in the protest is incomplete, retain the original and within 10 days of the initial review return a copy of the incomplete protest to the responsible party along with a letter that:

   • Clearly identifies the protest

   • Lists the actions the taxpayer must take and the additional information that is needed in order to perfect the appeal

   • Gives the responsible party 45 calendar days to perfect the protest

3. Even if the responsible party does not perfect the protest at the end of the 45 day time period, the revenue officer should still follow the procedures in IRM 5.7.6.1.8 to send the case to Technical Services - Advisory where it will be forwarded to Appeals.

4. After receiving a timely appeal, the case will be reviewed to determine whether further action or development is required before referring the case to Appeals (Rev Proc 2005-34). If further development is needed, the revenue officer will attempt to complete the additional development within 45 calendar days and forward the case to Technical Services - Advisory where it will be forwarded to Appeals. If the additional case development cannot be completed within 45 calendar days, document the history with the reasons.

5. Protests that are filed after the allowable time frames will also be forwarded to Technical Services - Advisory where it will be forwarded to Appeals for their consideration if the revenue officer does not change his or her determination on the case based on the information provided in the protest.

   Note:

   If the protest is not timely, do not transmit cases with less than one year remaining on the ASED to Tech Services for forwarding to Appeals unless a waiver extending the statutory period has been secured (see IRM 5.7.3.6.1 for the actions required when securing a waiver). Protests that are not filed within the allowable time frames do not extend the ASED under TBOR 2 (see IRM 5.7.3.6.2 for the impact a timely filed protest has on the ASED). If a responsible party files a protest that is not timely and refuses to sign the Form 2750 waiver, advise the responsible party that the TFRP assessment will be made and inform the responsible party of his or her right to file a claim for refund and abatement (IRM 5.7.7.6)

5.7.6.1.7  (04-13-2006)
Revenue Officer Agrees With Protest

1. If the information that the responsible party submits changes the revenue officer's determination on the case, the revenue officer may concede the case in whole or in part. See IRM 5.7.6.1.8 for the procedures to follow if the revenue officer does not change his or her determination based on the information that was submitted with the protest.

2. To make the appropriate change on Form 4183, Recommendation Re: Trust Fund Recovery Penalty Assessment, input the protest received date on the ATFR system and change the responsibility to partial or none for each period. The TFRP should then be re-calculated and the applicable forms updated. Group Manager approval must be secured on Amended Forms 4183.

3. If a responsible party protests the entire assessment and:

   IF: THEN:

   the revenue officer concedes the case in part	make the appropriate changes per 5.7.6.1.7(2) and follow the procedures in 5.7.6.1.8 for the portion of the TFRP that is still being protested
   the revenue officer concedes the case in whole	make the appropriate changes per 5.7.6.1.7(2) and advise the taxpayer the TFRP assessment will not be made

4. If the taxpayer is only protesting part of the assessment and the revenue officer agrees with the information submitted, the revenue officer will make the changes on Form 4183 as indicated in 5.7.6.1.7(2), advise the taxpayer of the change, and attempt to secure the taxpayer's signature on the updated Form 2751.

5.7.6.1.8  (04-13-2006)
Revenue Officer Disagrees With Protest

1. If the information that the responsible party submits does not change the revenue officer's determination on the case, or if the responsible party protests the entire assessment and the revenue officer only concedes the case in part, the revenue officer will:

   1. Prepare a rebuttal memorandum which individually and thoroughly addresses each issue raised in the responsible party's protest as well as the basis for the recommendation.

      Note:

      Include all information that supports the recommendation and reference the evidence secured, as well as any work papers reflecting the manner in which payments have been applied, specifically any payments directed by the taxpayer, court order, etc.

   2. Input to ATFR the date the protest letter was received.

   3. Send Letter 1154(DO) to the responsible party and enter the date onto ATFR.

   4. Generate and print Form 2749, Request for Trust Fund Recovery Penalty Assessment, and Form 3210, Document Transmittal.

      Note:

      If the taxpayer submits a timely appeal do not make a quick assessment until after the appeals determination. (See IRM 5.7.3.6.2(2).

   5. Input the "2749 to CPM" date onto ATFR

   6. Managerial review of the file must be completed prior to forwarding the case file to Technical Services - Advisory. The manager must review the file to determine that the assessment is fully supported and the case file contains all the necessary documents.

   7. The case file, with the assessment and supporting documents, including the protest mailing envelope (or original faxed document) in the appropriate case file tabs, (Document 9708), is forwarded to Technical Services - Advisory. Technical Services - Advisory will review the file for completeness and forward to Appeals. Revenue Officers are NOT to send the case file directly to Appeals.

      Note:

      These actions should generally be taken within 45 calendar days of receipt of a perfected protest, or within 45 calendar days of the established deadline for perfecting an incomplete protest

      Note:

      If a timely appeal is received, do not make a quick assessment until after the appeals determination. (See IRM 5.7.3.6.2(2))

2. Upon receipt of the TFRP package, Technical Services - Advisory will conduct a technical review or the case file and, if it is complete and acceptable will forward it to Appeals (see IRM 5.7.6.1.9).

5.7.6.1.9  (08-24-2006)
Transmittal of Case to Appeals

1. After receipt of the TFRP file, Technical Services - Advisory will review the case file for completeness and the information available on ATFR prior to transmitting the case to Appeals.

2. When the case is sent to Appeals, Technical Services - Advisory will:

   1. Enter onto ATFR the date sent to Appeals.

   2. Annotate Form 2749 in red "ASED extended by TBOR 2" for cases where a timely protest was filed. For cases NOT protected by TBOR2, Technical Services will put in red "the earliest ASED date" on Form 2749. This will alert Appeals to the statute situation and alert Technical Services - Advisory of the need to quick assess (IRM 5.7.6.4) if the proposed assessment is sustained by Appeals.

   3. Attach Form 3210 to the case file and show the date of expiration of the statutory assessment period on the transmittal for cases with less than six months on the ASED. Notate "Case under Taxpayer Bill of Rights 2" , if applicable. The remarks section of Form 3210 must reflect "TFRP Appeal Case - Advisory Review Completed."

      Reminder:

      The ASED is not extended under Taxpayer Bill of Rights 2 if the protest was not filed timely. Technical Services - Advisory will ensure Form 2750 has been secured or the TFRP assessment made if the ASED is less than one year on untimely appeals (IRM 5.7.6.

   4. Control the case on ICS by creating a case and a Non-Field (NF) OI under the SSN of the potentially responsible person.

3. Submit related cases (two or more responsible persons for the same corporation) together whenever possible.

   Note:

   For cases where one or more responsible parties agrees to the assessment and at least one other party is appealing the assessment, submit all files together to the unit in Technical Services - Advisory for cases that are being appealed. Since the ASED is not protected for the cases that are not being appealed, Technical Services - Advisory will complete the review and will submit the non-appealed cases for assessment and will forward the appealed cases to Appeals.

5.7.6.1.10  (04-13-2006)
Controlling and Monitoring Appeal Cases

1. Each Territory should establish a system for reviewing decisions made by Appeals to determine whether quality issues exist that need to be addressed. The Territory should arrange periodic meetings with Appeals to discuss trends, workloads and other issues of interest. Technical Services - Advisory may also establish a process to follow-up on overage Appeals cases.

2. If Appeals sends a case back asking for further information, provide the information within 45 calendar days. This date may be extended by mutual agreement. Appeals will retain jurisdiction on these cases if the ASED is held open only by the timely protest. This is to preserve the time in Appeals plus 30 days, under IRC 6672(b).

3. Once a final determination has been made, Appeals will:

   • Notify Technical Services - Advisory of their decision

   • Notate their memorandum "ASED expires 30 days from (the specific date Appeals has made their determination)" when applicable

4. Technical Services - Advisory will update the ATFR system with the date the case was returned from Appeals and the decision (No change, Partial Change, or Not Responsible) made by Appeals. Advisory will also make an ICS history entry with the same information and note when ATFR was updated.

   Note:

   If a responsible person has been determined to be responsible for only part of a quarter, the amount of that quarter will have to be changed to reflect the amount specified in the decision by Appeals.

5. If Appeals does not sustain the original proposed assessment, a new Form 2749 must be printed to reflect the correct TFRP amount based on the decision by Appeals.

6. Technical Services - Advisory will be responsible for completing any necessary quick assessment action (IRM 5.7.6.4) and ensuring the ASED is protected on these Appeals cases.

5.7.6.2  (04-13-2006)
Revenue Officer Assessment Actions

1. The revenue officer will generate and print a Form 2749 for each responsible person. The revenue officer will check IDRS to make sure all periods are included on Form 2749.

   Note:

   Do not include any periods for which there is no outstanding trust fund balance.

2. On Form 2749, the revenue officer will:

   1. Indicate in the comments if the corporation is out of business.

   2. Annotate "Bankruptcy" in red on top of form and provide basic bankruptcy information for cases where the responsible party or the employer has filed bankruptcy.

   3. Verify the correct entity name, address and TIN by using CC INOLE.

      Note:

      Prepare Form 2363, Master File Entity Change, when the information on CC INOLE is not current.

   4. Leave blank the blocks for "Amount of Penalty Assessed" , "Assessment Date" , and "Identifying Number" .

3. The revenue officer will prepare Form 3210A, enter the " 2749 to CPM" date onto ATFR, and forward the case file to Technical Services - Advisory.

   Note:

   Include a copy of Form 2750 if a waiver was secured from the taxpayer.

4. If levy information was secured for a responsible party, prepare Form 4844, Request for Terminal Action, so the levy information can be loaded to the IDRS levy file. The name, address, and TIN of the responsible party will be included on the Form 4844, and the Remarks section will contain:

   • Levy source name and address

   • Ending period of current tax year

   • Current IDRS cycle period

   • Wage Earner Code (P-Primary if taxpayer files Form 1040 individually or if the taxpayer files a joint Form 1040 and has the primary TIN; S-Secondary if the taxpayer files a joint Form 1040 and has the secondary TIN)

   • Levy Literal = "RT"

5.7.6.3  (08-24-2006)
Technical Services - Advisory (Control Point Monitoring — CPM) Actions for Assessment

1. The ATFR-CPM system is used to track and monitor trust fund cases received from the field and the compliance center. CPM is responsible for setting the final disposition of the case from ATFR when it is released from the compliance center.

2. Cases are systemically added to the CPM inventory after the revenue officer selects "2749 to CPM" to dispose of the responsible person's file. The CPM unit has the ability to record the following information:

   • Processing dates for Form 2749

   • Appeals case information

   • Date the TFRP package is sent to the Federal Records Center

   • Pertinent bankruptcy case information

   • TFRP assessment information

   • TFRP package requests from revenue officers

   • Form 843 claim information

3. Technical Services - Advisory will review the case files to determine if they are complete (IRM 5.7.6.5). Incomplete files will be returned to the revenue officer for the required documentation. If the case file is complete, CPM will:

   1. Verify the current Form 2749 balance on ATFR to ensure that the proper trust fund amount will be assessed by the compliance center.

      Note:

      If the balance has been reduced, generate a new Form 2749 and retain it in the case file.

   2. Enter the date the Form 2749 was transmitted to the compliance center in the "2749 to SC" field on ATFR.

   Note:

   It is no longer necessary to mail any documents to the compliance center for regular assessments . The ATFR-AO application will transmit the information systemically to the ATFR-CC part of the application. For quick and prompt assessment procedures, follow the instructions in 5.7.6.4, 5.7.6.4.1, and 5.7.6.4.2.

4. For cases assessed as regular assessments, it is no longer necessary for CPM to enter the Document Locator Numbers (DLN), assessment date, and assessment amount onto ATFR since this information will be entered systemically as part of the ATFR-CC part of the application. The assessment information is normally available on IDRS within 11-17 days after the "2749 to SC" date. For accelerated (quick, prompt, or jeopardy) assessments, CPM will update ATFR with the following information:

   • 2749 Assessed Date

   • Assessed Amounts (if different than the displayed amount)

   • DLN

   Note:

   This information must be input for quick, prompt, or jeopardy cases in order to avoid the potential for duplicate assessments.

5. For cases when the Form 2749 was generated prior to August 17, 2001, TFRP cases are assessed via the combined assessment method. For these cases, the assessments for all quarters are combined into one assessment under the assessment period for the last quarter of the liability. For cases when the Form 2749 is generated after August 17, 2001, the assessment will be made under the separate assessment method with each quarter assessed separately. There are two specific exceptions to this:

   1. If there are related individuals who have already been assessed under the combined assessment method, and the assessment for another individual is delayed beyond August 17, 2001 (usually because of an appeal), this individual will also be assessed under the combined assessment method in order to maintain consistency of the assessment method within that case.

   2. If there is more than one trust fund being assessed for the same assessment period, for example, Forms 941 and 945 for the fourth quarter of 2000, these assessments will be combined as one assessment.

6. The LEM criteria for assessment of each individual period is found in LEM 5.7.2 for MFT 55 cases.

7. Retain TFRP case files in Technical Services - Advisory until retirement to the Federal Records Center (see IRM Exhibit 1.15.28-1 for TFRP records retention information).

8. Technical Services-Control Point Monitoring employees will add the accession number and the Federal Records Center (FRC) location in the ATFR history prior to the normal purge of TFRP files to the FRC. This procedure will be followed until the ATFR system is updated to incorporate a designated field for this specific information. When ATFR is updated, the information will be placed in the designated field and the file location information will no longer be required in the case history.

5.7.6.4  (04-13-2006)
Quick and Prompt Assessment Actions

1. Quick assessment procedures are required when the assessment statute expires within 30 days.

   Note:

   If a timely appeal is received, do not make a quick assessment until after the appeals determination. (See IRM 5.7.3.6.2(2)). Technical Services - Advisory is responsible for making the quick assessments once the appeals determination is final (IRM 5.7.6.1.10)

2. Prompt assessment procedures should be used when collection appears to be at risk and the intention is to proceed with collection action immediately following the period for notice and demand.

3. Do not prompt assess the TFRP if:

   • The taxpayer will be granted or already has an existing undefaulted installment agreement

   • The assessment will be reported as currently not collectible

   • There are no distrainable assets or levy sources

   • No enforcement action is planned

4. Quick or prompt assessment for a TFRP may be made only after the taxpayer takes one of the following actions:

   • Signs Form 2751

   • Fails to respond to the Letter 1153(DO) within the appropriate time period

   • Completes the appeal process

5. Quick and prompt assessments may be requested under the following methods:

   • Telephone requests (IRM 5.7.6.4.1)

   • Facsimile (FAX) requests (IRM 5.7.6.4.2)

     Note:

     Ensure that the information is submitted to the appropriate SB/SE Compliance Center since only these centers are staffed to make these types of assessments.

6. The initiating office will prepare a separate Form 2859, Request for Quick or Prompt Assessment, for each period that is to be assessed. If one period on Form 2749 must be quick assessed in order to protect the statute, all periods on the Form 2749 must be quick assessed. Complete Form 2859 with all necessary information, including the initiator's name and address. Also include information as to whether the assessment is "agreed " or "unagreed" . Managerial approval of Form 2859 is required.

   Reminder:

   Only use "agreed" if the taxpayer signed Form 2751.

7. For both telephonic and fax assessments, Accounting Control/Services in the appropriate SB/SE Compliance Center will prepare Form 3552, Prompt Assessment Billing Assembly, and forward it to the initiator. The initiator will immediately deliver or mail certified Parts 3 and 4 of Form 3552, along with Publication 1, to the taxpayer. Notice 960 may also be included with Form 3552 to remind the taxpayer of the procedures to follow in order to file a claim for refund and request abatement of the liability. Multiple Forms 3552 for the same taxpayer may be mailed together. Accounting Control/Services will also forward copies of the Forms 2749 and 3552 to the TFRP unit in Compliance Services Collection Operations (CSCO) for input of the appropriate cross-referencing information and UNLCER information.

8. Send the TFRP case file to Technical Services - Advisory where it will be maintained until retired to the Federal Records Center (see IRM Exhibit 1.15.28-1 for TFRP records retention information).

5.7.6.4.1  (04-13-2006)
Telephone Requests for Quick or Prompt Assessments

1. For telephone requests, the initiating office will contact the appropriate Accounting Control/Services unit in one of the SB/SE Compliance Centers and provide them with the requested information from Forms 2859 and 2749.

2. Accounting Control/Services will:

   1. Assign a DLN.

   2. Prepare an Assessment Certificate.

   3. Notify the initiator of the appropriate DLN and 23–C (assessment) date.

      Note:

      The initiator will then ensure that the DLN , 23–C date, and the "2749 to SC date" are input onto ATFR.

3. The initiating office will mail the following documents to Accounting Control/Services (do not mail any documents to CSCO since this could result in a duplicate assessment):

   • Parts 1, 2 & 3 of Form 2859

   • Parts 1, 2, 3 & 4 of Form 2749

     Note:

     These forms must be submitted for each separate period that is to be assessed.

4. After making the assessment and receiving the documents from the initiator, Accounting Control/Services will send a copy of Form 2749 (with the DLN and 23–C date entered) and Form 3552 to the TFRP unit in CSCO for input of the appropriate cross referencing and UNLCE information.

5.7.6.4.2  (04-13-2006)
Fax Requests for Quick or Prompt Assessments

1. For fax requests, the initiating office will fax the following information to the appropriate Accounting Control/Services unit in one of the SB/SE Compliance Centers (do not fax or mail any documents to CSCO since this could result in a duplicate assessment):

   • Form 2859(T), Prompt or Quick Assessment Transmittal Request

   • Parts 1, 2, & 3 of Form 2859

   • Parts 1, 2, 3 & 4 of Form 2749

     Note:

     These forms must be submitted for each separate period that is to be assessed.

2. Upon receipt, Accounting Control/Services will process the request and either fax the appropriate form or telephone the initiator and provide the 23–C date and the DLN. The initiator will then input the DLN, 23–C date, and "2749 to SC" date onto ATFR.

3. After receiving the documents from the initiator and making the assessment, Accounting Control/Services will send a copy of Form 2749 (with the DLN and 23–C date entered) and Form 3552 to the TFRP unit in CSCO for input of the appropriate cross referencing and UNLCE information.

5.7.6.5  (04-13-2006)
Case File Documentation

1. A completed TFRP case file will consist of the following documents:

   Form/Letter Description

   Form 3210A	Document Transmittal for Trust Fund Recovery Penalty Cases
   Form 2749	Request for Trust Fund Recovery Penalty Assessment
   Form 4183 (including page 4)	Recommendation Re: Trust Fund Recovery Penalty Assessment
   Form 4180 (or an explanation as to why the form is not included)	Report of Interview or Personal Liability for Excise Tax with Individual Relative to Trust Fund Recovery Penalty
   Letter 1153(DO)	Letter giving taxpayer 60–day notice of proposed Trust Fund Recovery Penalty
   Form 2751	Proposed Assessment of Trust Fund Recovery Penalty
   	Corporate ICS balance due case history
   	TFRP Investigation history (ATFR or otherwise)
   	Collectibility determination (or reference to history date when collectibility determination was completed if not prepared as a separate document. Include the collectibility determination in the 4183 narrative.
   	Relevant back-up documents (cancelled checks, bank statements, etc.) or correspondence (letter from responsible person designating payment to trust fund, etc.)
   	Photocopies of related Forms 941, Employers Quarterly Federal Tax Return (or applicable signature document for electronically filed returns - IRM 5.7.4.2.4(4)

2. Copies of the following documents, if secured or prepared as part of the TFRP investigation, must also be included in the TFRP case file:

   Form/Letter Description

   Form 433A or Form 433F	Collection Information Statement
   Form 2750	Waiver Extending Statutory Period for Assessment of Trust Fund Recovery Penalty
   Form 9327	Nonassertion Recommendation of Uncollectible Trust Fund Recovery Penalty or of Uncollectible Personal Liability for Excise Tax
   Form 4181	Questionnaire Relating to Federal Trust Fund Tax Matters of Employer
   Letter 1154(DO)	Letter advising that protest is being forwarded to Appeals
   Letter 1155(DO)	Letter advising taxpayer the Service received taxpayer's consent to assess Trust Fund Recovery Penalty
   Form 2859	Request for Quick or Prompt Assessment
   Form 2644	Recommendation for Jeopardy or Termination Assessment

3. Other information that must be included in the TFRP case file, if it was secured, includes:

   • Protest letters along with the mailing envelope

   • Documents submitted in support of a responsible person’s protest

   • Revenue officer’s rebuttal to responsible person's protest

   • Back-up documentation for collectibility determinations

   Note:

   Adequate supporting documentation must be contained in the file(s) to fully support all recommendations for assertion. If the bank records or Forms 941 are not included in the case file, document the case file as to why they are not included and are not necessary.

4. Create and maintain a separate TFRP file for each party against whom the TFRP is assessed. If multiple related assessments are made with regard to a single employer, the supporting documentation should be maintained in the key file (Document 9600C) and cross-referenced in the supplemental files (Document 9526). Keep all related TFRP files together whenever possible (see IRM 5.7.6.1.9(3) for situations when not all parties are appealing the assessment).

   Note:

   If there are no responsible parties being assessed the TFRP on a particular account (for example, allresponsible parties were determined to be not collectible), maintain the TFRP files with the balance due case file. Do not submit these files to Technical Services - Advisory.

5. Include copies of any approved Forms 4183, Forms 9327, as well as any Form 2750 waivers that were secured in the balance due case file.

5.7.6.6  (04-13-2006)
Retrieving TFRP Case Files

1. TFRP case files are maintained in the Control Point Monitoring unit in Technical Services - Advisory for two years after the assessment. After two years the files are sent to the Federal Records Center where they are destroyed 12 years after assessment (this allows for the CSED plus 2 years for the taxpayer to file a claim for refund (Exhibit 1.15.28-1, Item 41(c).

2. Submit requests for TFRP case files to the CPM unit in the office where the assessment was made. If the case file is no longer in the CPM unit, the CPM unit will follow the guidelines in IRM 1.15.4.9 for requesting records from the Federal Records Center using Form 2275, Records Request, Charge, and Recharge.

   Note:

   If you are unsure where the assessment was made, contact your local Advisory office for assistance.