Memo Provides Guidance on Timing of Penalty Approvals

Expiration Date: 05/20/2022
Impacted IRM: 20.1.1

Date: May 20, 2020

MEMORANDUM FOR DIRECTORS OF EXAMINATION EMPLOYEES WHO ASSERT PENALTIES SUBJECT TO IRC 6751(b)(1)

FROM:
Victor G. Onorato
Director, Business Support Office (BSO)

SUBJECT:
Interim Guidance on Timing of Supervisory Approval with Respect to IRC 6751(b)(1)

This memorandum provides guidance regarding supervisory approval of proposed penalties under section 6751(b)(1) until IRM 20.1.1 is revised. Please ensure that this information is distributed to all affected employees within your organization.

Background

Section 6751(b)(1) provides that no penalty under this title shall be assessed unless the initial determination of such assessment is personally approved in writing by the immediate supervisor of the individual making such determination or such higher-level official as the Secretary may designate. This section applies to all civil penalties in the Internal Revenue Code (IRC), except for penalties under section 6651, Failure to file tax return or to pay tax; section 6654, Failure by individual to pay estimated income tax; section 6655, Failure by corporation to pay estimated income tax; and penalties that are automatically calculated through electronic means.

The change to the IRM is effective immediately and is shown in Attachment 1: IRM 20.1.1.2.3.1, Timing of Supervisory Approval. This is the authoritative policy regarding these changes on timing of supervisory approval and supersedes any existing policies to the contrary.

Attachment 1

20.1.1.2.3.1 (MM-DD-YYYY)
Timing of Supervisory Approval

If you have any questions, you may contact me, or a member of your staff may contact John McInelly, Program Manager, Office of Servicewide Penalties, at 801-620-2203.

Distribution:
IRS.gov (http://www.IRS.gov)