FSL/ET - AD Hoc Closing Agreement Procedures and Policy

Refer to IRM 8.13.1. The FSL/ET Closing Agreement Coordinator, Director, Government Entities and TEGEDC, as needed, may consider an ad hoc closing agreement to resolve a taxpayer’s prior tax year compliance issue. The taxpayer would not be under examination. The Director, Government Entities signs all ad hoc closing agreements.

FSL/ET closing agreements will generally require Forms W-2/W-2c to be furnished and filed as part of the agreement, unless a specific dollar amount per employee cannot be determined. Any deviation from such policy will be rare and will require the approval from both EEE Counsel and the Director of Government Entities.

Closing agreement tax assessments for barred assessment statute years (i.e. Section 218 retroactive pay issues) will be made per current Chief Financial Officer’s guidance.

Taxpayers will generally pursue the assessment of tax on all open years for the closing agreement issue via amended tax returns (for example, Form 941-X) and provide a copy to the FSL/ET Closing Agreement Coordinator. Facts and circumstances will govern any exceptions to this general policy.