BobKamman
Level 15
‎07-07-2020 06:52 PM

When all else fails, read the Internal Revenue Manual that IRS employees are required to follow.

4.12.1.3 (10-05-2010)
Enforcement Period

  1. Policy Statement 5-133 (P-5-133), IRM 1.2.14.1.18, Delinquent returns—enforcement of filing requirements, discusses delinquent returns and the enforcement filing requirements. The enforcement period is not to be more than six years. However, the extent to which delinquency procedures will be enforced will depend upon the facts and circumstances of each case, and by reference to factors ensuring evenhanded administration of staffing and other Service resources. Enforcement for longer or shorter periods may be used when consideration has been given to:

    1. The taxpayer’s prior history of noncompliance.

    2. The existence of income from illegal sources.

    3. The effect upon voluntary compliance.

    4. The anticipated revenue in relation to the time and effort, required to determine tax due.

    5. Any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.

    4.12.1.3.1 (10-05-2010)
    Management Approval

    1. Management approval is necessary if the enforcement activity is less than or exceeds the six-year period. Document the case file by:

      1. Outlining the facts of the case; and

      2. Detailing the reasons on Lead Sheet 130, Multi-year and Related Returns Lead Sheet, why enforcement for the longer or shorter period is recommended. (Deviating from P-5-133). If warranted, attach supporting workpapers.

       

    2. Group manager approval is not needed if the nonfiler voluntarily files returns beyond the established enforcement period.