Rev. Proc. 63-5

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to announce that examining officers of the Internal Revenue Service will, at the conclusion of an examination, invite voluntary payment of agreed deficiencies, or additional taxes, plus any applicable interest or penalties.

SEC. 2. SCOPE.

This procedure will be followed by examining officers in income, excise, and employment tax cases whether examined by field or office interview audit techniques.

SEC. 3. PROCEDURE.

.01 Examining officers will encourage offers of payment by taxpayers as soon as the examination has been completed and a firm figure for a proposed deficiency or additional tax has been determined. Since payments prior to the determination of the proposed deficiency or additional tax will not stop the running of interest, whenever an offer of payment is made prior to the tax determination, the examining officer will inform the taxpayer that it is preferable to make payment when the amount of the proposed deficiency or additional tax is determined.

.02 If the taxpayer agrees to the examining officer's findings but does not offer to pay the deficiency or additional tax found to be due, the examining officer will then invite payment thereof, together with any applicable interest or penalty. He will explain to the taxpayer the interest savings available because of paying at that time, rather than waiting for a formal notice to pay. The examining officer can accept properly completed checks or money orders but not each currency or coin).

.03 Prepayment by the taxpayer at the invitation of the examining officer, or at any time prior to receipt of the formal notice to pay, is entirely voluntary on the part of the taxpayer.

SEC. 4. INQUIRIES.

Inquiries relating to this Revenue Procedure should be addressed to the Assistant Commissioner (Compliance) for the attention of CP:A:P.