Note:

There is no closing letter for claims on Forms 1040 or 1120 if the taxpayer signs and returns Form 2297 and Form 3363.

If the taxpayer timely files a protest to Appeals (including claims cases). When the taxpayer responds to the 30-Day Letter with a protest to Appeals, examiners should follow the Appeals steps outlined in IRM 4.70.14.7, Closing Cases to Appeals, while also referring to the Appeals publication provided by the 30-day letter that was issued. We recently revised this section with our most current instructions for considering requests for appeals.

If the taxpayer concedes the issue or wants to enter into a closing agreement resolution, discuss the taxpayer’s proposal with the group manager for closing agreement resolution as a CAP or a DO 8-3 closing agreement. Follow the relevant procedures in IRM 4.70.14.2.1.2.2, EP - EPCRS and Closing Agreements, for those processes. If resolution is successful, update and prepare workpapers in the appropriate places to show the issue(s) resolution.

Reclassify the Administrative Record (if the case is a previously unagreed Form 5500) to a correspondence file.

Issue the appropriate closing letter.

Close the case to the TE/GE Closing Group.

If the taxpayer gives additional information that changes the government’s position, discuss case resolution with the group manager. If the group manager agrees that the case can be resolved, he/she will coordinate case processing with the examiner.

For all unagreed cases including claims, if the taxpayer doesn’t respond or chooses not to appeal, then the case will be closed to EP Mandatory Review for issuance of a 90-day letter or a final claim disallowance letter.

If a taxpayer agrees and signs Form 870-EP for a Form 5330 and 990-T examination or files Forms 5330, close the case per IRM 4.70.14.2.1.2.4, EP – Processing Agreed Forms 5330 and 990-T, whether they paid or not, and process any returns or checks received per IRM 4.70.13.9.5.2, EP Processing Delinquent Forms 5330 and 990-T.

If a taxpayer agrees and signs Form 4549-E for Form 1040/1120/Form 5329 discrepancy adjustments, close the case per IRM 4.70.15.5, Agreed Tax Change.

If a qualification issue is resolved through a closing agreement, close the case per IRM 4.70.14.2.1.2.2.2, EP - EPCRS Closing Agreements or IRM 4.70.14.2.1.2.2.3, EP - DO 8-3 Closing Agreements.