TEB - Execution of Closing Agreements

After the closing agreement has been through the required approval process, the examiner must send an execution copy of the closing agreement to the issuer and any other applicable parties for signature using Letter 1595, Closing Agreement Request for Taxpayer Signature Transmittal Letter. Be sure to use selectable paragraphs as applicable. Enclose Form 15094 when selecting paragraph G on Letter 1595.

Closing agreements are executed first by the taxpayer and other parties to the transaction, as applicable, and then by TEB. TEB signs the closing agreement only when the payment of the resolution amount is verified on the IRS systems and proof of any other required actions is received. Secure the taxpayer’s "wet ink" signature. (IRS signatures may be digital.)

In the transmittal, the examiner must direct the issuer to mail the closing agreement executed by the issuer and other applicable parties directly to the examiner’s group manager, at the address set forth in the transmittal. Upon receipt of the executed agreement from the issuer, the group manager emails a copy of the executed agreement to the examiner.

Examiner must confirm and document:

Payment of the Settlement Payment was made and is reflected on the proper IRS account module.

Any required payment was made from sources other than proceeds of tax-advantaged bonds.

Bonds that were described as redeemed and retired in the lettered paragraphs of the agreement have been redeemed and retired.

Any public statement or notice required under the agreement has been issued.

Any required escrow has been established and fully funded with sources other than proceeds of tax-advantaged bonds.

Any other required terms of the agreement have been met.

Signatory is someone eligible to sign a tax return or execute contracts.

If there are errors, return the closing agreement to the taxpayer using Letter 1595-B, Closing Agreement Return for Correction Transmittal Letter.

TEB receives all closing agreement payments through the Electronic Federal Tax Payment System (EFTPS) unless unusual circumstances warrant manually processing payments by certified check.