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Part 1. Organization, Finance and Management

Chapter 2. Servicewide Policies and Authorities

Section 51. Delegation of Authorities for Penalties and Interest Activities

1.2.51  Delegation of Authorities for Penalties and Interest Activities

1.2.51.1  (10-08-2010)
Introduction

  1. This IRM contains a combination of newly restructured, renumbered and revised Delegation Orders. Each Delegation Order is categorized by the process to which it belongs. The fact that Delegation Orders apply to all Service personnel involved in the type of program, activity, function, or work process covered by the Delegations of Authority remains unchanged.

  2. This IRM will now only be available electronically. Visit http://publish.no.irs.gov/catlg.html for a pdf version or visit IRM Online at http://irm.web.irs.gov/

  3. Any Delegation Orders approved after this revision of IRM 1.2.51 can be found on the Electronic Freedom of Information Reading Room at http://www.irs.gov/foia/content/0,,id=132732,00.html under the "Recently Approved Delegation Orders." tab. They will remain on the web until the next revision is made to this IRM.

    Note:

    If any Delegation Orders have been inadvertently omitted from this Section they are still considered official and in full force and effect. Please send any discrepancies found to spder@irs.gov.

  4. The following is a listing of all sections in the delegation order series:

    • IRM 1.2.2,Delegations of Authority;

    • IRM 1.2.40,Delegations of Authority for Organization, Finance and Management Activities;

    • IRM 1.2.41,Delegations of Authority for Information Technology Activities;

    • IRM 1.2.42,Delegations of Authority for Submission Processing Activities;

    • IRM 1.2.43,Delegations of Authority for the Examining Process;

    • IRM 1.2.44,Delegations of Authority for the Collecting Process;

    • IRM 1.2.45,Delegations of Authority for Human Resource Management Activities;

    • IRM 1.2.46,Delegations of Authority for the Rulings and Agreements Process;

    • IRM 1.2.47,Delegations of Authority for the Appeals Process;

    • IRM 1.2.48,Delegations of Authority for Criminal Investigations Activities;

    • IRM 1.2.49,Delegations of Authority for Communications, Liaison and Disclosure Activities;

    • IRM 1.2.50,Delegations of Authority for Taxpayer Advocate Service Activities;

    • IRM 1.2.51,Delegations of Authority for Penalties and Interest Activities;

    • IRM 1.2.52,Delegations of Authority for Special Topics Activities;

    • IRM 1.2.53,Delegations of Authority for Chief Counsel Activities.

    • IRM 1.2.54,Delegations of Authority for Security, Privacy and Assurance Activities.

1.2.51.2  (05-22-1997)
Delegation Order 20-1 (formerly DO-228, Rev. 3)

  1. Abate Interest Due to IRS Error or Delay (Updated (10-02-2000) to reflect additional new organizational titles required by IRS Modernization.)

  2. Authority: To abate assessed and unassessed interest due to IRS unreasonable error or delay under IRC § 6404(e)(1) and to issue notices of final determination not to abate interest.

  3. Delegated to: Chiefs of Appeals; Division Chiefs of Examination, Collection, Employee Plans and Exempt Organizations, Compliance, and Tax Accounts.

    Note:

    This authority is also delegated to Appeals Area Directors and Deputy Appeals Area Directors; LB&I Territory Managers; W&I Territory Managers; SB/SE Territory Managers; Directors, Federal, State and Local Governments, Indian Tribal Governments and Tax Exempt Bonds Field Operations Managers; TE/GE Area Managers; Customer Service Center Chief, Directors, Accounts Management Field and Directors, Compliance Services Field; and Submission Processing Center Chiefs.

  4. Redelegation: This authority may be redelegated to associate chiefs of appeals; district and service center branch chiefs (and equivalent positions). It may be further redelegated to first line managers for abatements under $2,500.

    Note:

    This authority may also be redelegated to Appeals Team Managers and Team Case Leaders; Customer Service Center Branch Managers and Group Managers and LB&I Team Managers as to their respective cases; and Submission Processing Field Branch Managers and Group Managers as to their respective cases.

  5. Authority: To issue notices of final determination not to abate interest in any instance in which an IRC § 6404(e)(1) claim for interest abatement is immediately disallowable because the claim falls outside the scope of the statute.

  6. Delegated to: The assigned interest abatement coordinator.

  7. Redelegation: This authority may not be redelegated.

  8. Sources of Authority: Treasury Order 150-10 and 26 CFR 301.6404.

  9. To the extent that the authority previously exercised consistent with this order may require ratification, it is hereby approved and ratified. This order supersedes Delegation Order No. 228 (Rev. 2), effective May 3, 1994.

  10. Signed: John M. Dalrymple, for James E. Donelson, Acting Chief Compliance Officer

1.2.51.3  (07-29-2008)
Delegation Order 20–2 (New)

  1. Approve Suspension of Interest on Certain Listed and Reportable Transactions Where Taxpayer Acted Reasonably and in Good Faith

  2. Authority: To approve suspension of interest under IRC § 6404(g) on certain listed and reportable transactions where the taxpayer has acted reasonably and in good faith and the interest has been assessed.

  3. Delegated to: Technical Services Exam Manager (Small Business/Self- Employed); Director of Field Operations (Large Business and International).

  4. Redelegation: This authority may not be redelegated.

  5. Authority: To approve suspension of interest under IRC § 6404(g) on certain listed and reportable transactions where the taxpayer has acted reasonably and in good faith and the interest has been assessed and is less than $100,000 for a single tax year.

  6. Delegated to: Interest Abatement Coordinators in Exam Technical Services (Small Business/Self-Employed).

  7. Redelegation: This authority may not be redelegated.

  8. Sources of Authority: IRC § 6404(g); 26 CFR 301.6404-4T; Pub.L.109-135 § 303; Pub.L. 109-432 § 426(b).

  9. To the extent that the authority previously exercised consistent with this Order may require ratification; it is hereby affirmed and ratified.

  10. Signed: Linda E. Stiff, Deputy Commissioner for Services and Enforcement

Exhibit 1.2.51-1 
Delegation Orders by Old Number, New Number and Title

New Number Old Number Title
20-1 228 (Rev. 3) Abate Interest Due to IRS Error or Delay
20–2 New Approve Suspension of Interest on Certain Listed and Reportable Transactions Where Taxpayer Acted Reasonably and in Good Faith

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