4.15.1. Jeopardy and Terminations

(1) This IRM provides examiners with information and guidance on the Jeopardy/Termination Assessments Program. This text provides guidelines on the use, approval, definition, and conditions of a jeopardy or termination (jeopardy/termination) assessment, who is responsible for recommending a jeopardy/termination, and balancing the criminal and civil aspects when there is a potential criminal case. This text also provides examiners with guidelines for the identification, assignment, development, and referral of jeopardy/termination assessments, administrative and judicial review procedures, and post-assessment procedures.

(1) By law, the Internal Revenue Service has the authority to conduct examinations under Title 26, Internal Revenue Code, Subtitle F - Procedures and Administration, Chapter 78, Discovery of Liability and Enforcement of Title, Subchapter A, Examination and Inspection, which includes, but is not limited to, the following IRC sections:

• IRC 6201, Assessment Authority.

• IRC 6851, Termination Assessments of Income Tax.

• IRC 6852, Termination Assessments in Case of Flagrant Political Expenditures of IRC 501(c)(3) Organizations.

• IRC 6861, Jeopardy Assessments of Income, Estate, Gift and Certain Excise Taxes.

• IRC 6862, Jeopardy Assessments of Taxes Other Than Income, Estate, Gift, and Certain Excise Taxes.

• IRC 6867, Presumptions Where Owner of Large Amount of Cash is Not Identified.

• IRC 7602, Examination of Books and Witnesses.

(1) The Director, Headquarters Examination, is the executive responsible for providing policy and guidance for Field employees and ensuring consistent application of policy, procedures and tax law to effect tax administration while protecting taxpayers’ rights. See IRM 1.1.16.3.5, Headquarters Examination, for additional information.

(2) The Director, Examination - Field and Campus Policy, reports to the Director, Headquarters Examination, and is responsible for the delivery of policy and guidance that impacts the Field Examination process. See IRM 1.1.16.3.5.1, Field and Campus Policy, for additional information.

(3) Field Examination Special Processes (FESP), which is under the Director, Examination - Field and Campus Policy, is the group responsible for providing oversight and policy and procedural guidance on specialized examination processes to SB/SE Field examiners and managers. See IRM 1.1.16.3.5.1.2, Field Exam Special Processes.

(1) Periodic program reviews are conducted by FESP to:

• Assess the effectiveness of specific programs within Examination or across the organization,

• Determine if procedures are followed,

• Validate policies and procedures, and

• Identify and share best/proven practices.

(1) The following table lists commonly used acronyms:

(1) The following table lists commonly used terms and associated definitions:

(1) The following table contains related resources referenced in this IRM:

(1) In any case which might cause serious inconvenience to the general public, the Director, Examination must be notified. If necessary, the Director, Examination will notify the Commissioner of the respective Business Operating Division (BOD). Examples of such cases include those involving banks, newspapers, insurance companies, hospitals, and public utility companies.

(2) The Area Director may request advice in any jeopardy/termination assessment situation from the Field, Counsel, or another function.

(1) The Area Director must exclude themselves from personal involvement in cases in the following situations:

1. They had access to grand jury information or are listed on the Rule 6(e), Grand Jury List.

2. They have reasonable cause.

3. They would be restricted by the rules of conduct applicable to government, executive branch and Treasury employees.

4. They have a conflict of interest.

(1) If the Area Director has excluded themselves, the following officials are delegated the authority to personally approve a jeopardy/termination assessment in the order prescribed below:

1. Director, Field Examination, (SB/SE)

2. Director of Field Operations, Criminal Investigation (CI)

3. Director, Employee Plans (EP)

4. Director, Exempt Organizations (EO)

(2) The authority of the Chief Counsel to approve a jeopardy/termination has been delegated to Associate Area Counsel. Contact Counsel for assistance in obtaining written approval. See IRM 30.3.2.4.3.1, Subject Matter Responsibility and Functions.

(1) Examination is responsible for recommending jeopardy/termination assessments in cases under their active consideration and referrals from outside agencies.

(2) Appeals may forward a report to Examination on a case pending before Appeals, for Examination to determine, if a jeopardy/termination situation exists. Examination will limit its investigation to a determination that collection of the current proposed deficiency will be endangered if regular assessment and collection procedures are followed. Appeals is responsible for making the final determination of the tax liability.

(1) Collection is responsible for recommending jeopardy/termination assessments in any case in which collection of the tax would be jeopardized by delay, except those cases under active consideration by Examination, Criminal Investigation (CI) or Tax Exempt and Government Entities (TE/GE).

(2) If Collection receives information on cases under active consideration by another BOD or territory function, the Director of Examination or the Field Territory Manager must report such information by memorandum to the affected BOD or territory function.

(1) CI is responsible for recommending jeopardy/termination assessments in cases under active consideration or joint active consideration by Cl and Examination, CI and Collection, or CI and TE/GE.

(2) If CI receives information on cases under active consideration by another BOD or territory function, the CI Special Agent in Charge (SAC) will report such information by memorandum to the affected BOD or territory function.

(1) TE/GE is responsible for recommending jeopardy/termination assessments in cases under active consideration by TE/GE.

(2) If TE/GE receives information on cases under active consideration by another BOD, the Director, Employee Plans, Director, Exempt Organizations; or Director, Government Entities, will report such information by memorandum to the affected BOD or Field Territory Manager.

(1) Appeals will forward a report to Examination or TE/GE, as applicable, if during an Appeals consideration of a case, it is determined a jeopardy/termination may be advisable. Examination or TE/GE is responsible for recommending the jeopardy/termination assessment.

(2) Appeals is responsible for determining the final tax liability if the liability case is under Appeals’ jurisdiction at the time of the jeopardy/termination recommendation. See IRM 8.7.1.6.3, Jeopardy Assessments on Cases Pending in Appeals.

(1) Any other function discovering or receiving information indicating the possible existence of a situation requiring a jeopardy/termination assessment will report such information by memorandum to the affected territory function.

(1) Jeopardy/termination assessments will be withheld in potential criminal tax investigations to the extent necessary to avoid imperiling successful investigation or prosecution of such criminal investigations. Civil enforcement actions with respect to the same taxable periods and same types of taxes for those periods included in the criminal investigation may imperil subsequent prosecution. On the other hand, when such action is warranted in those investigations, it must be taken whenever it is feasible to do so.

(2) Contact Cl if a jeopardy/termination assessment is considered on a case that has potential for a criminal tax investigation or may affect pending prosecution investigations.

(1) Criminal Investigation (CI) Opinion—If the taxpayer is under criminal investigation, contact CI to determine whether to proceed with the civil aspect.

(2) If CI agrees, civil enforcement actions can proceed without impeding the criminal aspect of the case. The responsible civil function will coordinate meetings with CI to be held periodically.

(3) Counsel Opinion—CI and Examination will obtain the opinion of their respective Counsel, if there is doubt as to whether a proposed civil action would imperil prosecution.

(4) If CI, Examination, and their respective Counsel cannot reach agreement, resolution will be elevated to the next level of management as described in IRM 1.2.1.5.11, Policy Statement 4–26 (Formerly P-4-84), Criminal and Civil Aspects in Enforcement.

(5) Generally, there will be no suspension of collection action on assessed amounts of tax liabilities reported on filed returns.

(1) The Exam Coordinator will review all cases to determine if the case meets the criteria for a jeopardy/termination assessment is met. See IRM 4.15.1.5

(1) The Exam Coordinator will contact and coordinate with other functions regarding jeopardy/terminations under Examination responsibility.

(2) The Exam Coordinator will contact other functions to determine if the taxpayer is under active consideration by another function or operating division.

(3) The Exam Coordinator will inform other functions of a possible jeopardy/termination case and will:

1. Contact Counsel to discuss the possible jeopardy/termination assessment.

   Note: Counsel must approve in writing, their concurrence with a jeopardy/termination assessment.

2. Notify the CCP Manager that a potential jeopardy/termination assessment case is underway. Provide CCP Manager with a tentative target date for assessment purposes and with the number of entities and tax periods involved.

3. Inform the Examination Field Territory Manager of the possible jeopardy/termination.

4. Contact the Field Collections Group Manager where the case resides and request an RO be assigned to the case.

(1) The Exam Coordinator will contact the group manager to request an examiner be assigned to the Jeopardy/Termination case. The group manager will provide the Exam Coordinator with the name of the examiner who will prepare the jeopardy/termination case. The examiners selected are generally from SEP groups. See IRM 4.16.1.3.1, General, for more information on the role of SEP examiners.

(1) The Exam Coordinator will manage the jeopardy/termination case to make sure the case is developed, prepared, and processed as quickly as possible. Due to the urgency involved in jeopardy/termination cases, the case will be given the highest priority of handling within and between the various functions.

1. Jeopardy Assessment controls must be established on Master File (MF).

Note: CCP can still process the jeopardy assessment, if a tax year is not on MF. See IRM 4.15.3.2.2, How Assessment is Made.

2. Termination Assessment controls must be established on Non-Master File Tax (NMF) 20 account.

3. Securing Temporary TINs for Jeopardy/Termination Assessment. See IRM 4.15.1.9.3.4, for more information on temporary TINs.

(1) The Exam Coordinator will deliver or send electronically encrypted, the complete package relating to the proposed jeopardy/termination assessment to the officials listed below, for concurrence or comment, prior to referral to the Area Director. See IRM 4.15.1.9.4.

(2) The assessment can be made through another campus in a different time zone in an emergency situation.

(3) Function officials listed below must approve the complete package prior to securing approval from the Area Director. Approval will be in the order shown below:

1. Exam Group Manager,

2. Exam Territory (Area) Manager,

3. Collection Group Manager,

4. Collection Territory Manager,

5. Special Agent in Charge (SAC), CI,

   Caution: If there is an open grand jury investigation, the SAC of the assigned special agent will not sign Form 2644, Recommendation for Jeopardy/Termination Assessment. The Exam Coordinator and Technical Services Jeopardy/Termination Coordinator will work together to determine which SAC will sign Form 2644. If an Acting SAC approves and signs Form 2644, the Exam Coordinator or assigned examiner will secure a copy of the acting designation to associate with the file.

6. Technical Services Group Manager,

7. Technical Services Territory Manager and

8. Area Counsel

Note: Counsel must sign last, except for the Area Director. Otherwise, review by other officials may be perfunctory or influenced by the fact Counsel has already approved. Each review must be meaningful.

(4) The examiner will make the necessary corrections and resubmit the package for approval if any official does not approve the package.

(5) The disagreement will be elevated through existing management channels for resolution, if any official does not approve and agreement cannot be reached between the officials.

(6) The Exam Coordinator will deliver the completed package by mail or send it electronically encrypted to the Area Director for approval after approval is secured from the function officials.

(1) The Exam Coordinator will coordinate with CCP and Collection after the Area Director has approved the jeopardy/termination. The Exam Coordinator will forward the appropriate files to the remaining business units as identified in IRM 4.15.1.9.

1. Delivery to CCP— The Exam Coordinator will EEfax the Form 2644, Recommendation for Jeopardy/Termination Assessment, signed by the Exam Coordinator, to CCP. The Exam Coordinator will provide their name and telephone number. After the assessment is made, CCP will return to the Exam Coordinator an electronic copy of Form 2644 with the DLN and 23C data. The Exam Coordinator will enter the DLN and 23C data on the remaining Forms 2644.

   Note: If a tax year is not on MF, CCP can still process the jeopardy assessment. The assessment will not appear right away but it will be a legal assessment as long as there is a signed 23C certificate. The assessment will post once the account is established on MF. See IRM 4.15.3.2.2, How Assessment is Made.

2. Delivery to Collection—The Exam Coordinator will deliver or send by secured e-mail the collection file to the Collection Revenue Officer (RO) and Collection Group Manager of the applicable geographic area. Please see IRM 5.1.4.3.4, Assessment and Post Assessment Procedures. The Technical Services Reviewer will secure the Technical Services Group Manager signature on three copies of the jeopardy or termination letter with the current date. The Technical Services Reviewer will deliver by EEfax, secured e-mail or certified mail two originals of the Jeopardy or Termination Letter to Collection. Collection will make provisions for serving the "Written Statement" consisting of the jeopardy or termination letter, tax computation, and narrative, along with the Notice and Demand to Pay Tax within five calendar days of the 23C date. The Technical Services Reviewer will send the jeopardy or termination letter, narrative, and tax computation to the taxpayer(s) via certified mail within five calendar days of the 23C date. Technical Services will suspend and hold the case file for 35 calendar days after the 23C date to allow time for the taxpayer(s) to request an administrative review.

   Note: To allow the Revenue Officer to meet the five-day requirement to serve the notices, assessments must be made early in the week. It is best to give Collection advanced notice the assessment will be made so they can schedule to serve the notices the same day as the assessments are processed, if possible.

3. Forward to Other Functions—The Exam Coordinator will forward the remaining respective files to Technical Services and Cl. See IRM 4.15.1.9 for contents of each file and distribution of the approval package.

(1) The Exam Coordinator will prepare Form 6388, Semi-Annual Report of Jeopardy and Termination Assessments, for their Field Territory Manager if required, or alternate report required if Form 6388 is not used in their respective Area.

(1) An employee can receive information from many sources, inside and outside the U.S. Government. When an employee receives information indicating a jeopardy/termination situation may exist, the following information will be obtained, if applicable:

1. Name, including any aliases,

2. Date of birth, if available,

3. Address(es),

4. TIN (generally, a SSN or EIN),

5. Arrest record,

6. Filing history (secure AMDIS, IDRS transcripts, or similar documents such as BMFOL or IMFOL, for the last three years),

(2) If a referral for a jeopardy/termination assessment is received from another organizational unit of the IRS, the Treasury Department, or Department of Justice (DOJ), the referral will be transmitted to the Field Territory Manager who will ascertain the status of the case. If the information shown on the referral is too general and/or vague to support a jeopardy/termination assessment, the referral will be assigned to an examiner to develop the facts necessary for approval or disapproval as expeditiously as possible. Any such oral referral received must be confirmed in writing prior to referral to the Area Director.

(3) The employee receiving the information indicating a possible jeopardy/termination situation, with group manager approval, will contact the Exam Coordinator.

(1) Evidence of meeting conditions for a jeopardy/termination assessment must be developed and documented to the maximum extent. Include indications that collection of tax will be endangered if regular assessment and collection procedures are followed. Include information regarding the taxpayer’s financial condition. All evidence and information must be available for review to determine if the jeopardy/termination is reasonable under the circumstances.

(2) The factors discussed below for flight, concealment, and insolvency, although not all inclusive, must be explored to the extent practical.

(1) The examiner will:

1. Establish, as thoroughly and sufficiently as circumstances permit, a reasonable belief that income has been earned, a tax is or will become due, and the tax will not be collected unless immediate action is taken.

   Note: Exclude unlawful wiretap evidence entirely and other tainted (Grand Jury) or illegally obtained evidence, if possible. Consult Counsel if there are doubts as to legality.

2. Interview the taxpayer, the arresting officer(s), and other knowledgeable persons such as associates, employers when possible and applicable. See IRM 4.15.1.9.2.1.

   Caution: Examiners must exercise caution before interviewing the taxpayer. The government’s position could be impeded if the taxpayer has knowledge of a possible termination or jeopardy assessment. If the case has fraud potential, or if the taxpayer is interviewed while in custody, the examiner will not interview the taxpayer without the presence of a special agent. The special agent will advise the taxpayer of their constitutional rights.

(2) An interview of someone other than the taxpayer is a third-party contact. If a third-party contact is necessary, see IRM 25.27, Third Party Contacts, for general third-party contact procedural guidance and IRM 4.16.1.4.5, SEP Responsibilities and Case Development, Third-Party Contacts, for information specific to SEP cases.

(1) A pre-approval report will be prepared by the examiner. The pre-approval report will consist of the following:

1. The appropriate jeopardy or termination letter in IRM 4.15.1.9.3.1,

2. Tax computation,

3. Narrative,

4. Copy of return, and

5. Other information.

(2) The Exam Coordinator will review the pre-approval report.

1. If the Exam Coordinator agrees with the report, the examiner will deliver, or send electronically encrypted, the report to the Technical Services staff for review.

2. If Technical Services concurs, the examiner and/or Technical Services reviewer will deliver, or send electronically, the report to Counsel for review.

3. If Counsel concurs, the pre-approval report will be returned to the examiner for preparation of the approval report.

4. If the Exam Coordinator, Technical Services, or Counsel does not agree with the pre-approval report, the examiner will make the necessary corrections, and resubmit the package for agreement.

Note: If the jeopardy/termination is determined not to exist, a memorandum to the file will be prepared to document the reasons for discontinuance. The file, with the memorandum to file, will be returned to the Exam Coordinator for record keeping.

(3) The Exam Coordinator will notify CCP an assessment is coming prior to the acceptance of the pre-approval report. The Exam Coordinator will send a draft copy of Form 5344, Examination Closing Record, Form 2644, Recommendation for Jeopardy/Termination Assessment, and Form 4549, Report of Income Tax Examination Changes, to CCP after the pre-approval report is approved.

(4) If the pre-approval report is accepted, an approval report will be prepared. The approval report is part of the package that is submitted for the Area Director’s approval of the jeopardy/termination assessment.

(1) The examiner will prepare the approval report after the pre-approval report has been accepted. The approval report is part of the package to be submitted to the Area Director and Counsel for approval of the jeopardy/termination assessment.

(2) The approval report will consist of the following items:

1. Form 2644, Recommendation for Jeopardy/Termination Assessment—A separate Form 2644, in triplicate, will be prepared for each taxpayer in cases involving transferor-transferee liability or assessment of Trust Fund Recovery Penalty (TFRP) as provided in IRC 6672, Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax. For possessor of cash assessments, the taxpayer’s name will include the words "as Possessor of Certain Cash" following the taxpayer’s name.

   Note: Form 2644 must be signed by the Exam Coordinator for the respective Area.

2. Form 2645, List of Property Belonging to Taxpayer—Must list all property of which the examiner has knowledge. It provides Examination and Collection with any information on property or distrainable assets belonging to the taxpayer.

3. Form 3198, Special Handling Notice for Examination Case Processing—Under "Expedite Processing", on the first page, check block "Other" and insert: For a jeopardy: "Jeopardy assessment of type of tax." Include the type of tax, income or other (whichever type is applicable). For a termination: "Termination assessment of income tax. "Under "Forward to Technical Services" check the boxes for "Jeopardy or Termination" and "Other" and in the section after "Other"—document the following: For a jeopardy: "Jeopardy Assessment" For a termination: "Do not make refund or post full year return." For a possessor of cash: "This is an assessment made under provisions of IRC 6867, Presumptions Where Owner of Large Amount of Cash is Not Identified. Do not merge account for (insert possessor’s name)."

4. Form 4135, Criminal Investigation Control Notice—This form places a TC 914 on MF to prevent the posting of the full year return, and is prepared for terminations and possessor of cash only. Place an "X" in the Box "TC 914." For a termination: Under Remarks found on page 2, indicate "This is a termination assessment of income tax. Do not post full year return. Send any returns received to Field Territory Manager, XXXX Area." For a possessor of cash: (either a jeopardy or termination)—Under remarks, indicate "This is a jeopardy/termination (choose one) assessment under the provisions of IRC 6867. Do not merge account for (insert Possessor’s Name) as Possessor of Certain Cash with taxpayer’s personal account". See IRM 4.15.1.10.6, for more information on possessor of cash.

5. Form 5345-D, Examination Request-ERCS (Examination Returns Control System) Users, is prepared for terminations only. Item 1 must reflect Source Code 60 (to requisition the full-period return for follow-up action). Item 17, "Reason for Request/Related Return" will be completed by the Exam Coordinator for year-end follow-up action.

6. Form 5346, Examination Information Report, is prepared for terminations only. Enter in "Information Obtained," the following "Termination of taxable period."

7. Form 11661, Fraud Development Recommendation-Examination. This form is used in cases where the civil fraud penalty is proposed.

8. Jeopardy/Termination Letter—see IRM 4.15.1.9.3.1.

9. Tax computation—see IRM 4.15.1.9.3.2.

10. Narrative—see IRM 4.15.1.9.3.3.

11. Copy of Return—see IRM 4.15.1.9.3.4.

12. Other Information—see IRM 4.15.1.9.3.5.

13. Counsel Memo.

14. Form 4549, Report of Income Tax Examination Changes.

15. Form 5344, Examination Closing Record.

16. Compliance Evaluation and other supporting lead sheets.

(3) A total of five files of the approval package are prepared for a jeopardy/termination assessment. The files are sent to: Technical Services, Exam Coordinator, Criminal Investigation (CI), Centralized Case Processing (CCP) and Collection (the Revenue Officer who will assert the levy). The table below summarizes the contents that are included in each approval package sent to the respective functions:

(1) The Exam Coordinator will ensure an examination is completed in order for a Statutory Notice of Deficiency (SNOD) to be issued, as required by the jeopardy/termination provisions. The examination file, which includes the jeopardy/termination assessment file, is completed and assembled according to case file assembly procedures. The completed case will be forwarded to Technical Services for issuance of the required SNOD.

(2) If a full year return is not filed or accepted, a SNOD is required to be mailed to the last known address of the taxpayer.

(3) Exam Technical Services is responsible for issuing the SNODs in jeopardy/termination assessments, except in cases pending in Appeals. All SNODs prepared in jeopardy/termination cases will be reviewed by Counsel before issuance.

(4) Jeopardy—A SNOD is required to be mailed to the last known address of the taxpayer within 60 calendar days of the date of the assessment. See IRM 4.8.9.17.3.1, Jeopardy Notice of Deficiency, and IRM 4.8.8.7.1.3, Preparing Notices of Deficiency, for more information. An examination of the taxpayer, preparation of the SNOD, and review of the notice by Counsel, will be completed within the 60-day period.

(5) Termination—A SNOD is required to be mailed to the last known address of the taxpayer, for the taxpayer’s full taxable year, within 60 calendar days after the later of the following:

1. The due date of the taxpayer’s return for the taxable year, including extensions, or

2. The date the taxpayer files a return for the taxable year if the taxpayer files a return by the due date, including extensions. However, if the taxpayer does not file a return, the SNOD must be sent within 60 calendar days after the due date of the return, including extensions. See Perlowin v. Sassi, 711 F.2d 910, 912 (9th Cir. 1983) and Ramirez v. Commissioner, 87 T.C. 643, 648 n.2 (1986).

(1) Termination assessment provisions require the taxpayer who is subject to a termination assessment to file a full year return, and the IRS to issue a SNOD to the taxpayer with respect to that full year return. Generally, the SNOD will be issued within 60 calendar days from the due date of the return including extensions. Controls must be established to follow through on termination assessments. For termination assessments, Exam is responsible for establishing/requesting NMF controls and to determine whether or not the taxpayer files a full year’s return and the location of the filing for termination assessments.

(1) If the taxpayer, who is subject of the jeopardy/termination assessment, files a request for an administrative review, the Exam Coordinator will forward the request to Technical Services. The request is made by the taxpayer after the assessment is made.

(1) This IRM subsection discusses IRC 7429, Review of Jeopardy Levy or Assessment Procedures, which provides for administrative and judicial review of jeopardy and termination assessments. Jeopardy/termination assessments under IRC 6867, Presumptions Where Owner of Large Amount of Cash is Not Identified, are not entitled to administrative and judicial review under IRC 7429.

(1) During administrative or judicial review of the jeopardy/termination assessment action, there may be a determination the assessment was improperly made or excessive in amount, or Appeals may overturn the assessment. If the Area Director believes a jeopardy/termination assessment is excessive in amount, or if it is shown to the satisfaction of the Area Director a jeopardy situation does not exist, they may abate the assessment in whole or in part.

(2) An abatement of all or part of the tax must be supported by a statement of reasons, the report of findings, and a new computation of tax. Copies of the Area Director's, Appeals', or Counsel's statement of reasons, report of findings, and new computation of tax will be included in the file of any jeopardy/termination assessment.

(3) The jeopardy/termination assessment case file (including the statement of reasons, report of findings, and a new computation of tax) will be forwarded according to whether a judicial or administrative decision is made.

(4) Counsel will relay court orders to abate all or part of the tax to Technical Services.

(5) Appeals will relay Appeals’ decisions to abate all or a part of the tax to Technical Services.

(6) Other Decision — The Area Director's decision to abate all or part of the tax will be relayed to Technical Services.

(7) Technical Services will forward the following information:

1. The case file to Technical Services Manager, for immediate processing of the abatement. Form 5344, Examination Closing Record, will be prepared to decrease tax, penalty, and interest for cases open in Exam. Form 3870, Request for Adjustment, will be used in other cases. See IRM 4.8.8.7.1.4, Abating Jeopardy/Termination Assessments, for instructions on abating jeopardy/termination assessment cases by Technical Services.

2. The information to the Collection Territory Manager, to advise them of the redetermined liability, of any restrictions on the collection action which may be pursued, or of a final decision by the court which may permit sale of seized property. If a part of the assessment remains, collection action may be resumed for the balance due. If an excess collection has been made, the Campus will refund the excess. No refund will be made until the case is closed.

3. A copy of the statement of reasons, report of findings, and a new computation of tax for granting an abatement, to the Exam Area Director and the Exam Coordinator for review.

(1) If an individual comes forward and claims ownership of cash (or cash equivalent) related to an assessment per IRC 6867, Presumptions Where Owner of Large Amount of Cash is Not Identified, they will be advised to submit a written request to the Area Director marked for the attention of the Exam Coordinator. See IRM 4.8.8.7.1.3.3, Possessor of Cash Notice of Deficiency, for more information.

(2) The written request for return of the subject property will be signed under penalty of perjury. The request will contain the following information:

1. The name, address, and SSN of the person submitting the request,

2. A detailed description of the property levied upon, if other than cash; if cash, state the exact amount seized,

3. A description of the claimant's basis for claiming the property levied upon as belonging to the claimant,

4. The name and address of the "Possessor" of the cash or cash equivalent (the person who was originally found to be in possession of the cash and who denied its ownership and did not properly identify the true owner) and

5. The originating operating division, the date of lien or levy as shown on Form 668–A, Notice of Levy, or Form 668–B, Levy, or in lieu thereof, a statement of the reasons why such information cannot be furnished.

(3) If the Exam Coordinator determines the written request is valid, they will forward any changes to the original assessment based on the written request to Technical Services. Technical Services is responsible for abating any overassessment and refunding the overassessment to the claimant, if applicable. See IRM 4.15.1.10.5, for more information on abatement procedures. Exam will notify Technical Services of their determination so Technical Services can arrange for disposition of any noncash items seized.

(4) The original assessment will be abated. If circumstances dictate, another assessment may be made on the individual that came forward and claimed the cash. The assessment, against the owner of the cash, that replaces the original assessment, will be treated as dating back to the date of the original assessment.