CCA 1313030: IRS attorney discusses obsolete streamlined injunction procedures

Plain-English summary

An IRS attorney responded to a request for materials about streamlined injunctions used in employment-tax collection matters. The memo says that streamlined injunctions were generally a thing of the past because the former project allowed revenue officers to skip certain steps, including informing taxpayers about monthly filing and special deposit procedures. It points to IRS guidance indicating that those procedures were obsolete. The memo also notes that the cases it relies on were not decided under IRC § 7402 and that courts do not analyze § 7402 cases in the way the referenced subsection suggests.

Ruling snapshot

• Question: What materials and legal guidance apply to streamlined injunctions used to stop pyramiding employment taxes?
• Outcome: Advice given about obsolete IRS procedures and the limits of the cited case analysis.
• Key authorities: IRC § 7402; IRM 5.17.4.17.1; IRM 5.7.2.1, Letter 903 (DO)

Full text (IRS public release)

ID: CCA-945550-12 Number: 201313030
Release Date: 3/29/2013
Office: --------------
UILC: 7402.00-00

From: -----------------
Sent: Tuesday, September 4, 2012 5:55 PM
To: ----------------------
Cc:
Subject: RE: Streamlined Injunctions to Stop Pyramiding Employment Taxes - Need materials if any -----

Hi ---------

Sorry for the delayed response. I'm working at home today and am having problems accessing things on
the intranet. So I haven't finished looking for materials that might be helpful.

I can say, though, that generally streamlined injunctions, per se, are a thing of the past. The former
streamlined injunction project involved allowing RO's to skip certain otherwise required steps, such as
informing taxpayers about monthly filing and special deposit procedures, in the case of certain taxpayers..

This memo discussed the project:

But as this interim memo indicates, those steps are obsolete.

This is also indicated in the current 5.17.4.17.1,
http://serp.enterprise.irs.gov/databases/irm.dr/current/5.dr/5.17.dr/5.17.4.dr/5.17.4.17.1.htm.

-------------------------------------------------------------------------------------------------------- The cases it relies upon
were not decided under section 7402, and the courts do not analyze section 7402 cases the way the
subsection indicates. Though the analysis is similar that that.

IRM 5.7.2.1, Letter 903 (DO), has recently been updated in light of the obsolescence of montly filing and
spcial deposit procedures.
http://serp.enterprise.irs.gov/databases/irm.dr/current/5.dr/5.7.dr/5.7.2.dr/5.7.2.1.htm

I'll reply again tomorrow.

ATTACHMENT 1: REDACTED

ATTACHMENT 2: Nov. 15, 2012 Guidance Regarding Interim Guidance