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20.1.10.1
(01-01-2006)
Overview
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This section of the consolidated penalty IRM discusses
the excise tax penalties and miscellaneous penalties not included in the other
chapters.
20.1.10.1.1
(01-01-2006)
Common Features
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In general, each penalty discussed in this chapter
is unique and will stand alone unless otherwise indicated. Exceptions and
additional information are noted in the discussions of the specific penalties.
However, some general procedures will apply.
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Statute of Limitations.In
general, the additions to tax, additional amounts, and assessable penalties
in IRC sections 6651–6657 and IRC sections 6671–6723 are assessed, collected,
and paid in the same manner as taxes. To the extent such an item pertains
to a tax return, the assessment is subject to the period of limitation in
IRC section 6501 (generally, three years
from the later of the due date (unextended) or the filing of the return.
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Reasonable Cause.Determination
as to whether or not reasonable cause exists must be based on a careful consideration
of the facts and circumstances of each case prior to the assertion of a penalty.
Examiners should consider any reason a taxpayer provides in conjunction with
the guidelines, principles and evaluating factors identified in the Introduction
and Penalty Relief Chapter. See IRM 20.1.1.3.1 ,
Reasonable Cause, as well as the applicable IRC section and Treasury Regulations
relating to the specific penalty.
Note:
Relief from a penalty may also be
provided through Statutory Exceptions, Administrative Waivers, and Correction
of Service Error. See IRM 20.1.1.3, Relief
from Penalties.
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Abatements.Information on
penalty abatements and penalty reason codes (PRC) is discussed in IRM 20.1.1.3.
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Penalty Transaction Codes.See
Exhibit 20.1.1–4 for a list of penalty transaction codes.
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Penalty Reference Numbers.See
Exhibit 20.1.1–5 and 20.1.1–6 for a list of penalty reference
numbers (PRN.)
20.1.10.1.2
(01-01-2006)
Who Asserts/
Assesses
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A service center or compliance function may determine that a penalty
should be imposed.
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At a service center, the penalty may generate automatically, or
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Compliance functions consider the penalty during an examination or during
personal contact with the taxpayer.
20.1.10.1.3
(01-01-2006)
Assertion/ Assessment
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Penalty reference numbers (PRNs) are used to assess
non-tax return related penalties (conduct or information returns).
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The five hundred (500) series PRNs are usually generated
as a result of computer matching programs and used to identify the failure.
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The six hundred (600) series PRNs are generally
used to assess penalties as the result of an examination or other compliance
activity.
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See Exhibit 20.1.1–5 and 20.1.1–6 for
a complete list of current PRNs .
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