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25.1.2.7
(01-01-2003)
Excise Tax Fraud
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In addition to other indications of fraud, the
following incidents should be considered in excise cases:
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Taxpayer previously filed returns and paid excise
tax but stopped filing and paying without explanation.
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Taxpayer sold the article at a tax included price
but did not report or pay tax to government.
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Taxpayer handles identical products, considers one
taxable and the other not taxable.
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In collected taxes cases warranting assertion
of the Trust Fund Recovery Penalty, there will be instances when any appreciable
delay in asserting and collecting the tax or penalty would jeopardize the
revenue. In all such cases, the area director is authorized to decide whether
collection of the penalty might be jeopardized. If in the area director’s
opinion the revenue might be jeopardized by following such procedure, the
director may disregard it and promptly assess and collect the penalty involved,
making necessary quick assessments or jeopardy assessments, as circumstances
warrant. Except for potential jeopardy cases, the Service does not authorize
assessment of additional penalties during the time a recommendation for criminal
prosecution is under consideration or during the period such cases may be
awaiting trial or pending an appeal.
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