SB/SE Memo Updates Policy on Extension Consent Documents

Expiration Date: 05-30-2021
Impacted IRM: 25.6.22

May 30, 2019

MEMORANDUM FOR
SB/SE DIRECTOR, EXAMINATION
LB&I DIRECTOR, EXAMINATION
TE/GE DIRECTOR, EXAMINATION
W&I DIRECTOR, EXAMINATION
APPEALS DIRECTOR, EXAMINATION

FROM:
Maha Williams
Director, Examination — Field and Campus Policy

SUBJECT:
Policy Update on Use of Form 56 and Form 872-H for Employee Plans

The purpose of this memorandum is to provide updated guidance regarding Form 56, Notice Concerning Fiduciary Relationship, and Form 872-H, Consent to Extend the Time to Assess Tax on a Trust, when soliciting an extension of an assessment statute expiration date (ASED) for an Employee Plan.

Currently, IRM 25.6.22.5.3, Taxpayer's Name, states the consent must indicate the name of the plan and the plan number. The update requires Form 56 be secured to determine the name of the trust.

Additionally, IRM 25.6.22.6.13, Employee Plans, states if the trust does not have an EIN, the plan sponsor's EIN may be used on Form 872-H. This is incorrect and will be removed from the IRM.

This guidance is effective immediately and will be incorporated into the applicable IRM sections within two years of enactment. The changes to be made to these IRMs are shown in Attachment 1 and Attachment 2. This is the authoritative policy regarding these changes on assessment statute extension consent documents and supersedes any existing policies to the contrary.

If you have any questions, please contact me, or a member of your staff may contact Christopher T. Vickers, Acting Program Manager, Examination Field and Campus Policy, Field Exam Special Processes, at 813-302-5539.

Attachment 1 — IRM 25.6.22.5.3, Taxpayer's Name
Attachment 2 — IRM 25.6.22.6.13, Employee Plans

Distribution:
IRS.gov

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Attachment 1 to SBSE-25-0419-0015, Policy Update on Use of Form 56
and Form 872-H for Employee Plans

25.6.22.5.3 (MM-DD-YYYY)
Taxpayer's Name

(1) The consent should be prepared and signed using the same name as that used on the return as filed, unless since filing, there has been a name change. In these situations, the consent should be prepared using both names, but the signature line should only show the current name; however, showing both the current and former names on the signature line is also acceptable.

(2) Abbreviated names, such as “Geo.”, “Chas.”, “Jas.”, “Wm.”, should not be used in the name line of the consent or the signature line, unless they are used on the return in both the name and signature block. If an entity's legal name contains abbreviations, the abbreviations should be used.

(3) For Employee Plan matters, the consent must indicate the name of the trust.

Note: Form 56 must be secured to determine who is the current fiduciary. The fiduciary is the person who has the authority to sign the extension consent form. See IRM 25.6.22.4.1, Fiduciary Relationships, for additional guidance.

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Attachment 2 to SBSE-25-0419-0015, Policy Update on Use of
Form 56 and Form 872-H for Employee Plans

25.6.22.6.13 (MM-DD-YYYY)
Employee Plans

(8) Research should be conducted to determine if the trust has an EIN. If it is determined that the trust does have an EIN, then the correct trust EIN should be used on Form 872-H. If the trust does not have an EIN, the applicable line should be left blank. When preparing Form 872–H:

• Input the trust name and current address on the appropriate lines

• Input the word “Income” on the “Kind of tax” line

• Input a date on the “Expiration date” line that is far enough in the future to allow ample time for the case to be processed

• The trustee(s) must sign the consent form exactly as their name appears on Form 56 (the trustee must be a current trustee)

• Ensure that the consent is dated on the “Date signed” line next to the signatures

• See IRM 4.71.9, Statute Control Procedures, and http://tege.web.irs.gov/article.asp?category=job&title=employee-plans-exhibits&path=/my-job/8_internal-revenue-manual, Exhibits 7, 8, 9 and 12, for examples of completed Form 872-H.