SECTION 3. ACTION BEFORE

APPEALS CONSIDERATION

.01 If the Internal Revenue Service (IRS) proposes to assert either the Dyed Fuel Penalty or the Refusal Penalty against a taxpayer, the IRS will notify the taxpayer in writing. If the taxpayer does

June 4, 2001 1322 2001–23 I.R.B.

not agree with the proposed penalty, the taxpayer will be asked to complete Form 12009, Request for an Informal Confer- ence and Appeals Review, and submit it, within 30 days from the date of this notification, to the IRS supervisor responsible for the taxpayer’s case. Form 12009 is included as an Appendix to this Revenue Procedure. If the taxpayer does not submit this form to the IRS within this 30 day period, the IRS will, in the case of the Dyed Fuel Penalty, assess the penalty or, in the case of the Refusal Penalty, take appropriate legal action to collect the penalty.

.02 If the taxpayer submits Form 12009 on a timely basis, the IRS supervisor responsible for the case will review the information submitted by the taxpayer on the taxpayer’s Form 12009 and will contact the taxpayer to arrange a conference. If, after this conference, the IRS still proposes to assert the penalty, the IRS supervisor will so notify the taxpayer. The taxpayer then has 30 days from the date of this notification to request that the case be reviewed by Appeals. The taxpayer makes this request by contacting the IRS supervisor who will then forward the case to Appeals. An Appeals Officer will then contact the taxpayer and, if necessary, arrange for a conference in Appeals.