LB&I directive - New IRS enforcement process for noncompliance with IDRs is delayed 

February 10:  The IRS Large Business and International (LB&I) division announced, via an emailed newsletter, a delayed effective date for new, more stringent enforcement process when taxpayers do not timely comply with information document requests (IDRs) or do not provide complete responses to an IDR by the response date.

The LB&I directive (November 4, 2103) had an original effective date of January 2, 2014. According to the February 2014 newsletter alert, the new IRD enforcement procedures will not be effective until March 3, 2014.

The effective date is being delayed based on “…additional feedback . . . received from managers, employees and NTEU,” and the LB&I newsletter indicates that this feedback will be “incorporate it into the Directive.” Read the LB&I newsletter [PDF 160 KB]

Directive on IDR enforcement process

The LB&I directive (November 4, 2013) provides three "graduated steps" in the IDR enforcement process:

  • A delinquency notice
  • A pre-summons letter
  • A summons

The LB&I directive states that this three-step enforcement process is mandatory and that there are no exceptions.

Under the directive, LB&I managers—at all levels—are to be actively involved early in the IDR process and must determine that IRS Counsel is prepared to enforce IDRs through the issuance of a summons, if necessary.

The LB&I directive originally stated that the IDR enforcement process was to be effective beginning January 2, 2014—as of that date, the process would apply only to IDRs that were issued in accordance with certain requirements. However, if the IDR failed to meet these requirements, it was to be re-issued to conform to the new requirements, including a new response date, at which time other enforcement procedures would then apply to that IDR.

In addition, to allow for a smooth transition to these new enforcement procedures, LB&I examiners were directed not to issue delinquency notices prior to February 3, 2014.

Read TaxNewsFlash-United States (November 4, 2013).

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