Example:

Payments must be manually processed if EFTPS is unavailable or otherwise expected to be unavailable on the anticipated due date for the payment.

The issuer of the tax-advantaged bonds, the conduit borrower or, in the case of an IRC 6700 penalty exam, the taxpayer, may submit the closing agreement amounts.

If the closing agreement payment relates to the issuer’s potential tax liability (for example, denial of an IRC 6431 credit payment) or the bondholders (for example, inclusion of interest income or denial of a tax credit), then report the payment using the issuer’s EIN regardless of the source of the payment.

If the closing agreement payment relates to the potential tax liability of the conduit borrower (for example, IRC 150(b) or IRC 168(g) adjustments), then credit the payment to the borrower using an appropriate MFT.

If the closing agreement payment relates to a potential promoter penalty, then credit the payment to the taxpayer subject to the IRC 6700 penalty.

In all cases, the group manager or examiner must verify that the Master File entity account for the EIN of the taxpayer who’ll submit the electronic payment is accurate. If there isn’t an entity account for the EIN, the group manager or examiner must ensure that one is created on Master File. The group manager or examiner must confirm the existence of the entity accounts in advance of execution of the closing agreement to allow time to establish the account, if necessary.

The examiner forwards to the group manager documentation confirming the issuer’s required performance under the terms of the closing agreement have been met, together with all necessary closing agreement transmittal letters Letter 1595-D, Final Signed and Approved Closing Agreement Transmittal Letter.

The group manager:

Confirms the executed documents are consistent with the document approved by the TEB Program Manager.

Confirms any required actions including: settlement payments, redemptions, notices, escrows have been completed.

Scans the executed closing agreement received from the issuer.

Prints all closing and transmittal letters and affixes the signature stamp for the TEB Program Manager and then scans the signed letters.

Securely emails the closing agreement package to the TEB Program Assistant or other person designated by the Director and the Director (with a cc to the TEB Program Manager).

The closing agreement package must contain:

The Closing Agreement Committee Approval, including the Closing Agreement Briefing Memo.

Verification that the IRS received the resolution amount.

The scanned executed closing agreement.

The scanned signed closing and transmittal letters.

The TEB Program Assistant or other person designated by the Director coordinates with the Director for execution of the closing agreement. The Director may sign the closing agreement with a manual or electronic signature. The TEB Program Assistant or other person designated by the Director:

Dates all closing and transmittal letters.

Securely emails an electronic copy of the dated closing and transmittal letter 1595-D and one copy of the executed closing agreement to the originating group manager (with a cc copy to the TEB Program Manager).

Mails the executed original agreement to the issuer and sends copies of the agreement to the other signatories and any representative required to receive a copy along with the closing letters and transmittal letter 1595-D.

Securely emails an electronic version of the executed closing agreement to the Committee members.

The originating group manager ensures that copies of the dated and signed closing and transmittal letters and executed closing agreement are in the case file.

The originating group manager sends by secure email a copy of the closing agreement involving direct pay bonds to the Direct Pay Bonds Compliance Review Coordinator in TEB Technical when the resolution involves any change in the debt service schedule for the bonds.