TEB - Closing Agreement Terms

TEB prepares the closing agreements. This section discusses some of the general terms we use to resolve specific matters.

Some violations are covered by a special closing agreement program. Generally, this program is described in a public announcement or notice and includes the closing agreement template to use. When this program applies, the issuer and the IRS must use the closing agreement template that is provided.

To determine a closing agreement’s resolution terms, the examiner, group manager, TEB Program Manager and the Committee consider the compliance failure’s facts and circumstances.

If the issuer or other party that executes the agreement fails to comply with its terms, TEB considers the significance of that failure. If a failure to comply with a material term of the closing agreement constitutes a new deliberate action or intentional act within the meaning of the Regulations and constitutes a new violation with respect to the bond issue, you may need to prepare a later closing agreement to resolve a new violation arising after the execution of a closing agreement (See IRM 4.70.14.2.1.5.9.1, TEB – General Rules Applicable to Closing Agreements).