Justice Manual § 6-6.422

When submitting a settlement offer to the Tax Division for approval, the United States Attorney should allow a sufficient period of time for the Tax Division to act on the offer. The amount of time required will vary, depending upon the nature and complexity of the case, and the amount involved. For example, the Tax Division must submit a settlement involving a refund or credit in excess of $2 million of income ($5 million of income in the case of corporations), estate or gift tax, or certain excise taxes to the Joint Committee on Taxation. For such a case, the Government is likely to need a minimum of 90 days. Even in a relatively uncomplicated matter, where the case requires no additional investigation or submissions, the Government will need a minimum of 45 days.

Additionally, the Tax Division needs time to consult with IRS counsel or obtain additional information from the IRS. Except in a case that IRS counsel has classified as S.O.P. (Settlement Option Procedure), the Tax Division will always obtain the written recommendation of IRS counsel on a settlement offer in a tax case. Further, before the Tax Division can act on any offer, the IRS may need to prepare additional computations and/or conduct an investigation. When a settlement is based on collectability, the IRS may also need to conduct an investigation.

For all of these reasons, the United States Attorney should protect the Government's interest by urging the proponent of the offer and the court to allow the Government ample time to process an offer.