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Part 13. Taxpayer Advocate Service

Chapter 1. Taxpayer Advocate Case Procedures

Section 10. Special Processes

13.1.10  Special Processes

13.1.10.1  (10-01-2001)
Overview

  1. This section describes special processes necessary to work specific issues. All employees of the Taxpayer Advocate Service (TAS) must be aware of the these special processes.

13.1.10.2  (10-31-2004)
Obtaining Legal Advice From Chief Counsel

  1. When working your cases, you may come upon issues that are beyond the scope of your expertise. Your options include discussing the case with your manager, consulting a Technical Advisor, consulting with the Operating Division or Functional Unit, or contacting the Chief Counsel office for a legal opinion. The Technical Advisors are our primary source for interpreting internal policies and procedures, while Chief Counsel provides legal advice on the rights and responsibilities of both taxpayers and the Internal Revenue Service under the Code.

  2. Generally, the field offices of the Division Counsel (Small Business/Self Employed) will provide routine legal support or advice, whether oral or written, to the (TAS). In every Counsel SB/SE post of duty there will be a manager or senior attorney designated as the point of contact (SB/SE contact) for TAS issues.

  3. Advice on issues involving non-tax administration matters such as personnel, labor, and procurement should be requested from your local General Legal Services office. Similarly, advice on criminal tax matters should be requested from your local Criminal Tax Counsel office.

  4. Counsel's procedures for providing legal advice to TAS are included in the Chief Counsel Directives Manual (CCDM). You can find the CCDM under the IRM link on the TAS Intranet site at http://counsel.web.irs.gov/intranet_new/deskguide/ccdmchapters/.

13.1.10.2.1  (08-21-2000)
Who Initiates Contact

  1. If you believe that you may need legal advice, contact the Technical Advisor or your manager. That person will either answer your question or recommend a request for legal advice from the SB/SE contact. The Technical Advisor or your manager will determine who will make the request from the SB/SE contact. This applies whether you are a Local, Area or Operating Division Taxpayer Advocate employee.

  2. If a case has been elevated to an Area Taxpayer Advocate (ATA) who determines that legal advice is warranted, but the Local Taxpayer Advocate (LTA) office did not request advice initially, the LTA should request advice on behalf of the ATA from the Local Taxpayer Advocate's SB/SE contact.

13.1.10.2.2  (08-21-2000)
Advice Requests

  1. When a potential imminent hardship does not allow time for processing a written request or when your question is simple enough to warrant an oral response, call the designated SB/SE contact after making contact as described in IRM 13.1.10.2.1, Who Initiates Contact . Have available a summary of the relevant facts and questions. The SB/SE contact will answer your question or refer you to the appropriate attorney. Counsel's policy is to respond within 24 hours to requests for oral advice.

  2. At the request of Counsel or whenever legal assistance requires the review or analysis of a complicated set of facts, prepare a written request (signed by the ATA, LTA or Taxpayer Advocate group manager) clearly stating:

    1. The legal issue on which you are seeking advice

    2. A summary of the relevant facts and case history

    3. Your analysis (if any) of the appropriate statute or other law

    4. A description of any prior contacts on the case with other IRS employees and/or Chief Counsel attorneys

    5. A proposed response date

    6. Your name and telephone number

13.1.10.2.3  (08-21-2000)
Time Frames for Advice by Counsel

  1. The assigned Counsel attorney should contact you to confirm receipt of a written request, determine when a response is needed, and discuss the specific date by which Counsel will provide a response. In discussing the response date, consider the need to avoid unnecessary hardship to the taxpayer and the need for Counsel to work with other offices in the IRS. Counsel should provide you with written notification (either by fax, E-mail, or memorandum) of the name and telephone number of the attorney assigned to answer the request and the anticipated completion date.

  2. Keep both the taxpayer and the assigned attorney informed about any significant developments in the case while Counsel is preparing legal advice.

  3. If Counsel does not provide legal advice by the agreed upon date, contact the assigned attorney to determine the reason for the delay. If the taxpayer will not experience additional unnecessary hardship, consider whether you can agree to an adjusted response date. If the taxpayer will experience unnecessary hardship and the attorney anticipates a continued delay, advise the attorney of the need and reasons for the expedited consideration. If the attorney is unable to provide a response within a time frame that you believe is workable, suggest that the attorney consult with his or her manager for other options. Advise your manager of the situation for further guidance and assistance.

13.1.10.2.4  (08-21-2000)
Additional Review by Counsel

  1. When Counsel provides legal advice in response to your request and you believe the advice should be reviewed at a higher level in Counsel, contact your manager. Your manager will determine whether such review is warranted. If so, your LTA or the ATA should forward the request and any documents for review to the Area Counsel SB/SE who oversees the SB/SE contact office. If, after the review conducted under the direction of the Area Counsel, your manager believes additional review is warranted, your manager should inform the Area Counsel. The Area Counsel will forward the request and any material for review to the Division Counsel SB/SE and simultaneously forward a copy to the Office of the Counsel to the National Taxpayer Advocate (CNTA). Division Counsel SB/SE will provide a response after consultation with the CNTA.

13.1.10.3  (10-31-2004)
Disclosure Issues and Taxpayer Authentication

  1. As an Internal Revenue Service employee, you are responsible for protecting tax returns and tax return information and privacy act records. Internal Revenue Code Section 6103 (IRC §6103) contains provisions for protecting and disclosing confidential returns or return information. The Privacy Act protects the confidentiality of records retrieved by an identifier for an individual. You can use IRM 11.3, Disclosure of Official Information concerning disclosure situations you may encounter.

  2. You are responsible for ensuring you are speaking to the correct taxpayer. You must verify that you are speaking to the correct taxpayer/representative . Follow IRM 21.1.3.2.3, Required Taxpayer Authentication and if necessary IRM 21.1.3.2.4, Additional Taxpayer Authentication. For information on POA or representatives follow IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication.

  3. Prior to providing authorized tax return information to the individual, you must query the taxpayer and conduct IDRS research to validate the taxpayer's responses (e.g. name and TIN). For a list of the research command codes, refer to IRM 21.1.3.2.3(8) Required Taxpayer Authentication.

  4. Document your actions of authenticating the taxpayer and any verification of third party authorizations on TAMIS history.

  5. On subsequent contacts, in which you previously authenticated the taxpayer/representative, and you have positive voice recognition, additional taxpayer authentication is not necessary.

13.1.10.3.1  (10-31-2004)
Power of Attorney, Other Representatives and Third Party (Check Box) Designations

  1. There are times when taxpayers may ask accountants, attorneys or enrolled agents to assist with tax problems or to represent them before the IRS. To authorize a party as power of attorney (POA), the representative may submit a Form 2848, Power of Attorney and Declaration of Representative. See IRM 21.3.7.3, Third Party Authorization Research.

  2. A taxpayer can appoint someone to receive their tax account information by signing Form 8821, Tax Information Authorization (TIA). This allows the authorized party to receive tax account information, but does not allow them to advocate for the taxpayer or argue examination or collection issues. Unenrolled agents have limited power and are not allowed to argue tax-related issues.

  3. Treas. Reg. §301–6103(c)-IT(b) authorizes the IRS to accept non-written requests or consents (Oral Disclosure Consents) authorizing the disclosure of return information to third parties to assist taxpayers in resolving their federal tax matters. Only the taxpayer or his/her authorized representative, who has been previously given the authority by a Power of Attorney to appoint other designees, can give an Oral Disclosure Consent. Oral Disclosure Consents may be taken from taxpayers, or his/her authorized representative, who have open account issues or to whom some type of notice has been issued from IRS. The disclosure of return information must be limited to the information covered in the verbal consent and disclosure can only be made to third parties helping taxpayers resolve a Federal tax matter. The Oral Disclosure Consent expires when the account issue is closed.

  4. To record an Oral Disclosure Consent for a taxpayer inquiry where no TAS case is generated, TAS employees will follow the IRM 21 procedures. Refer to 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821) for requirements and history item format using CC ACTON.

  5. To record an Oral Disclosure Consent for TAS cases, TAS employees will record authorizations on TAMIS instead of IDRS.

  6. Effective January 2, 2002, the CAF Units will process requests for Oral Tax Information Authorization (Paperless Form 8821) in the CAF database. In order to request an oral Tax Information Authorization request the taxpayer must have the assigned CAF number to the third party, or else the Form 8821 must be submitted in writing. The paperless Forms 8821 allow the appointee to contact IRS by telephone and to receive notices and transcripts, but only if the data requested is needed to resolve a Federal tax matter. They do not allow the appointee to receive refunds for the taxpayer, not to advocate for the taxpayer.

  7. To record an Oral Disclosure Consent for a taxpayer inquiry where no TAS case is generated, TAS employees will follow the IRM 21 procedures. Refer to 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821) for requirements and history item format using CC ACTON.

  8. To record an Oral Disclosure Consent for TAS cases, TAS employees will record authorizations on TAMIS instead of IDRS.

  9. A taxpayer can designate a third party contact by checking the box on their tax return. This designee is known as a the Third Party Designee. The Third Party Designee is authorized to receive tax information relating to return processing issues (i.e. notices), refund or payment; respond to missing information on the return and discuss math errors. Refer to 21.1.3.3.1, Third Party Designee Authentication for information on authorization and disclosure.

  10. Refer to either Publication 4019, Third Party Authorizations (Job Aid), or to IRM 21.3.10.2.6, Locating Information for Different Types of Authorization, for references concerning different types of authorization (Website: http://serp.enterprise.irs.gov/databases/irm.dr/current/21.dr/21.3.dr/21.3.10.2.6.htm).

  11. You can send original, photocopied, or faxed copies of Forms 2848 or 8821 to the CAF unit to be processed. If a POA/TIA is received that is not attached to any return or document, route it to the appropriate centralized CAF unit, see IRM 21.3.7. Document the date the Form 2848 or 8821 was sent to the CAF unit in the "Date Form 2548/8821 sent to CAF" field in the TAMIS POA Screen. If the authorization is attached to correspondence, review the correspondence to determine if other requests are involved. If other requests are involved:

    • Fax a copy of the authorization (Form 2848 or Form 8821) to the CAF function for processing

    • Send a copy of the correspondence and authorization to the appropriate office(s) to complete the request(s).

  12. Do not detach POAs/TIAs filed for specific issues from the related document or send them to the CAF function, unless the document includes authorization for release of return information in addition to the specific issue. In this case, a copy of the POA/TIA should be sent to the appropriate centralized CAF unit to input the return portion on the CAF system.

  13. Examples of specific issues include, but are not limited, to the following:

    • Form 843, Claim for Refund and Request for Abatement

    • Form 966, Corporate Dissolution or Liquidation (Form 964 is obsolete)

    • Form W–4, Employee's Withholding Allowance Certificate

    • Form 4361, Application for Exemption from Self-Employment Tax for use by Ministers, Members of Religious Orders, and Christian Science Practitioners

    • Form 1128, Application to Adopt, Change, or Retain a Tax Year

    • Form SS–4, Application for Employer Identification Number

  14. If you receive a "General Power of Attorney" or "Durable Power of Attorney" which does not contain sufficient authorization to process on CAF, retain it in the case file or keep it attached to the related return. If it is attached to a completed Form 2848, both forms should be sent to the CAF function for processing.

  15. Documentation should be included in the case history as to whether the forms were sent to the campus for processing. If not, documentation should list the reasons for not sending the forms for processing.

  16. Congressional offices provide their own authorization forms completed by their constituents and will forward the authorization forms to TAS or IRS office. The IRS accepts these forms as tax information authorizations. The IRS also accepts correspondence addressed and sent to congressional offices as authorization for releasing tax information if the correspondence contains ALL of the following information:

    • If the correspondence is addressed to the Senator or Congresswomen requesting the information; and

    • The person whose tax information is requested has sent AND signed the letter; and

    • The correspondence contains the taxpayer's name and Social Security Number; and

    • Help in the tax matter is specifically requested.

    Note:

    It is important to remember TAS cannot honor a third party request for assistance from a congressional office.

    Example:

    A brother or other individual without POA cannot obtain assistance from the IRS on his sister's behalf regarding a tax matter by writing to his congressman. If this type of correspondence is received, call the congressional office and ask that the taxpayer, in this case the sister complete one of their authorization forms.

  17. Ensure that any valid power of attorney or written authorization on file that provides for sending correspondence or copies of correspondence to the representative is honored.

13.1.10.3.2  (04-01-2003)
Misuse of IRC §6103

  1. The Restructuring and Reform Act of 1998, §1203(b)(7), deals with the willful misuse of provisions of §6103 of the Internal Revenue Code of 1986. This provision deals with the withholding of information from a congressional inquiry. Congressional inquiries are mandatory authorized disclosures and the willful disregard of statutory provisions for disclosing such information would subject the employee to disciplinary action under the provisions of RRA 98, §1203. The Director, Legislative Affairs should be informed immediately if any request for tax information from a congressional committee.

  2. Internal Revenue Code (IRC) Section 6103(f)(1) provides for the disclosure of tax information upon receipt of a written request from the Chairman of the Committee on Ways and Means of the House of Representatives, the Chairman of the Committee on Finance of the Senate, or the Chairman of the Joint Committee on Taxation. Pursuant to the IRC Sections 6103(f)(1) and (f)(4), the Chairman of the Committee of Ways and Means has authorized the Chairman of the Subcommittee on Oversight to request and obtain tax information relating to certain broad categories. If any return or return information can be associated with or otherwise identify, directly or indirectly, a particular taxpayer, the committee must be sitting in closed executive session or have the taxpayer's written consent. However, this is contingent on the specific verbiage in Ways and Means authorizing letter.

  3. Only officials with authority under Delegation Order 156, as revised, may approve disclosure to be made to congressional committees under IRC §6103.

  4. IRM 11.3, Disclosure of Official Information, covers disclosure guidelines for Committees of Congress, Congressional committees, such as grand jury and informant information, and sets out record keeping requirements when making disclosures to Congressional committees.

13.1.10.3.3  (04-01-2003)
Notice of Third Party Contacts

  1. Section 3417 of RRA98 revised Internal Revenue Code §7602(c) to require that IRS employees provide taxpayers with notice of contact of third parties. Under this section you must provide taxpayers with prior notification that third parties may be contacted during the determination or collection of that specific taxpayer's federal tax liability. This section also requires you provide a list, periodically and upon taxpayer request, of third parties that have been contacted. This is effective for all third party contacts made after January 18, 1999.

    Note:

    See IRM 13.1.2.6, RRA 98 §3417 Third Party Contacts for taxpayer's authorization of third party contact when signing Form 911.

  2. When you receive a criteria 1–4 hardship request there are times when you must contact a bank or landlord to verify the facts of the taxpayer's circumstances. The taxpayer may be requesting immediate assistance, such as releasing a levy or expediting a refund. Contacts with third parties, even in the instances of hardship determination, are considered to be in connection with the determination or collection of a tax liability and, as such, are §7602(c) contacts.

  3. If the taxpayer has signed the Form 911, check to see if the revision date is March 2000 or later. This form has a paragraph which provides taxpayer authorization for making third party contacts and if signed, allows TAS employees to contact third parties without having to comply with the notice and record keeping requirements of Section 7602(c).

  4. If no Form 911 is signed and the taxpayer authorizes specific third party contact(s), the best practice is to complete a Form 12180 (Exhibit 13.1.10–1) and have it signed by the taxpayer. This form should remain with the case file. Where the taxpayer is not in direct contact with you, it is appropriate for the taxpayer to Fax a signed copy of the Form 12180 to you and remain in the case file.

  5. If the taxpayer gives Oral Authorization , IRS employees are not required to complete a Form 12180, in all cases. See IRM 13.1.7.3.3.2, IRC §7602(c) Oral Authorization for §7602(c) Third Party Contact for more information on this topic.

  6. You should document your case file with the date the taxpayer provided the authorization. Assistors can also meet the requirements of this law by utilizing 3-way calling with the taxpayer on the line.

  7. If the taxpayer does not authorize contact, you should ensure the taxpayer receives a reasonable notice via Letter 3164J, Notification of Potential Third Party Contact that third parties may be contacted and should record contacts made to third parties. Allow 10 days after mailing Letter 3164J before contacting any third party, then file Form 12175 with your third party contact coordinator.

13.1.10.4  (10-31-2004)
Handling Suicide Threats

  1. You may experience instances when talking to taxpayers either in person or on the telephone when they indicate suicidal intentions, either directly or indirectly. These communications are not only sensitive, but may be uncomfortable for you as well. You need to know what to say, what you can do, and what you cannot do.

  2. At other times, you will receive a case where either the front line employee has already had the first conversation with the taxpayer, or the suicidal intention is stated or hinted at in correspondence. In these situations, you will at least have time to prepare what you are going to say before contacting the taxpayer.

  3. Stay Calm

  4. You are not expected or encouraged to " counsel" or provide therapy to any taxpayer. Instead, you are to listen to the taxpayer, ask concerned questions, take the taxpayer's feelings seriously, and respond effectively.

  5. Alert your immediate manager to a suicide threat situation immediately. It is suggested a manager or supervisor handle a call or inquiry.

  6. If the inquiry is a live telephone call, ask the taxpayer for his or her location (including phone number) from which he or she is calling. Document the caller's address and location.

  7. Ask another employee to immediately contact the local law enforcement or government suicide prevention authority. Report the threat and the caller's location to the local authorities. When a phone number and or the caller's location is obtained from the caller, IRS can relay this information to local authorities, as this is not a disclosure of return/account information, see IRM 13.1.10.4.2 for situations when the taxpayer's location is not obtained by the taxpayer.

  8. While reporting a suicide threat to local law enforcement authorities, state only that the threat was made during a contact involving "official business" . Be careful not to mention the underlying reason for the taxpayer's call or the fact that is was related to a tax issue.

  9. Contact your local Disclosure Officer as soon as possible and inform him/her of the threat. Contact should be made if a threat is received either orally or from correspondence.

  10. Refer to IRM 21.1.3.12, Suicide Threats for additional information on handling suicide threats.

13.1.10.4.1  (04-01-2003)
Crisis Center Directory and Other Contact Points

  1. Each Local Taxpayer Advocate should maintain listings of phone numbers for State and Federal police and local Suicide prevention organizations.

13.1.10.4.2  (04-01-2003)
Discussion of Disclosure Issues

  1. One of the major considerations in helping a potentially suicidal taxpayer is "What information can I provide to an outside party, such as the police department or suicide intervention service, and still meet the legal obligation to protect the confidentiality of tax information? "

13.1.10.4.2.1  (04-01-2003)
Disclosure in Emergency Situations Pursuant to IRC 6103(i)(3)(B)

  1. Disclosure provisions of the IRC limit the release of confidential taxpayer information to others. In situations where there is an immediate danger of death or physical injury to any individual, IRC 6103(i)(3)(B)(i) allows disclosure of tax return information to a Federal or State law enforcement agency.

  2. By itself, a suicide threat to IRS is not considered tax information and therefore is not covered by the rules limiting tax disclosures. If you can get the address or current location directly from the taxpayer or from a public source (e.g. telephone book, internet or other public source), then 6103 rules do not apply to that location information.

  3. If the taxpayer's location must be obtained by accessing the tax information (e.g. through IDRS), IRS employees must follow the procedures related to disclosures under IRC 6103(i)(3)(b)(i).

  4. If the taxpayer will not provide their location, an authorized IRS employee (as defined in Delegation Order 156) can use IRS systems (e.g. IDRS), in order to give the information to Federal or State law enforcement agencies. See IRM 11.3.28.9 for Suicide Threat disclosure guidelines. Note that this form of disclosure may be only made to the appropriate State or Federal authorities and NOT local police.

  5. In all instances, only disclose information relevant to the threat. Tax-related information cannot be disclosed.

  6. Contact your local Disclosure Officer as soon as possible and inform them of the threat and of any information that was disclosed to Federal or State law enforcement.

13.1.10.4.3  (04-01-2003)
Incident Report

  1. As soon as possible after the event an incident report should be prepared and forwarded to the TAS Area Taxpayer Advocate. The report should include the following information:

    • Employee/manager information-names, location, phone numbers

    • Taxpayer name, EIN(s), address, phone number

    • Date and time of incident

    • Description of incident

    • Action(s) taken

    • Current status

13.1.10.5  (10-31-2004)
Disaster Related Case Processing

  1. General procedures for handling disaster related issues can be found in IRM 25.16, Disaster Assistance and Emergency Relief.

  2. Taxpayers who are victims of a disaster and make their initial contact for assistance to TAS should receive expedited handling in accordance with Disaster Relief procedures. TAS employees should be aware of the disaster procedures. Taxpayers should be directed to the function that has been assigned to assist with the issue involved. A local Disaster Coordinator is generally designated and may be contacted for the proper referral point.

  3. In directing the taxpayer to the proper contact point, TAS employees should make a "live" transfer of the call, or offer to have the appropriate person make a return call, whenever possible.

  4. In extraordinary circumstances, disaster victims may also qualify for hardship processing offered by the Taxpayer Advocate Service. Disaster related cases qualifying for TAS handling should be controlled on TAMIS and assigned the appropriate case criteria codes.

  5. New and open TAS cases, impacted by a disaster, will be treated with the utmost sensitivity. TAS employees will advise their manager of any such case. Timeframes for contacting the taxpayer, setting deadlines, and allowing extra time for response before closure, etc., should be extended based on the disaster circumstance and on reasonable judgement. Under no circumstances should a case, where the taxpayer has requested additional time be closed, until it has been discussed with your manager.

  6. Contact with taxpayers affected by a disaster situation should be handled with care in a sympathetic manner.

  7. Ensure that necessary stays on collections actions are requested and or input on TAS cases affected by disasters.

  8. Local Taxpayer Advocates will participate on the team convened by the Field Assistance Area Director to determine the assistance and resources to be devoted to disaster recovery situations, whether Federally declared or otherwise. The LTA will consult the ATA and National Taxpayer Advocate before committing TAS resources to a disaster recovery endeavor.

13.1.10.6  (10-31-2004)
Media Involvement-Related Issues

  1. The TAS communication office should always be notified of any media contacts. While the case advocate will be responsible for resolving the taxpayer's issue, the manager will determine who will contact the taxpayer and/or media. Refer to IRM 13.6, TAS Communications .

  2. Managers should coordinate with the TAS Communication office and the Office of Disclosure on the content of the responses.

13.1.10.7  (10-31-2004)
Combat Zone-Related Issues

  1. Cases involving "combat zone" issues require special handling.

  2. Procedures on handling combat zone issues can be found in IRM 21.6.6.4.19.1.2, KITA/KIA Procedures for All Functions and on SERP. Key words related to combat zone issues are KIA (Killed In Action) and KITA (Killed In Terrorist Action).

13.1.10.8  (10-01-2001)
Small Business Regulatory Enforcement Fairness Act (SBREFA) Cases

  1. There may be times when you receive a TAS case notated "SBREFA Case." Taxpayer comments (compliments/complaints) about the IRS may be referred to the IRS from the Small Business Administration (SBA) Ombudsman. These cases will come from Taxpayer Account Operations Office and may or may not meet TAS Criteria.

  2. All forms documenting SBREFA/IRS Taxpayer Advocate Service cases with taxpayer questions or issues must be controlled on TAMIS within 3 workdays of the receipt by the TAS office. The following should be entered on TAMIS on the Taxpayer Screen

    • The appropriate Business Operating Division Code (BOD)

    • Select special case code 60 to identify the case as a SBREFA case.

    • The TAS received date is when it was identified as falling under SBREFA procedures.

  3. Senior Associate Advocates (SAAs) or above should work the case as any other TAS case with the exception that NO contact should be made directly with the taxpayer unless proper disclosure documentation for the SBA Ombudsman is needed.

13.1.10.8.1  (04-01-2003)
Working SBREFA Cases

  1. Generally, the referrals will be made on the SBA's Federal Agency Appraisal Form. The form includes a confidentiality/disclosure section with three options for the taxpayer to complete. If the taxpayer agrees to allow the IRS to disclose tax-related information, a completed Form 8821, Tax Information Authorization, must accompany the Federal Agency Appraisal Form.

  2. If the taxpayer selects option, " 1" on the Appraisal Form to allow disclosure only to the SBA Ombudsman and the Regional Fairness Board, the SBA will review the case and advise the Small Business/Self Employed (SB/SE) Operating Division of the issue. The SB/SE will review these situations for trends and take appropriate action. No TAS case will be created.

  3. If the taxpayer selects option " 2" to allow disclosure to the relevant Federal government agency or option "3" to allow full disclosure, a completed Form 8821 authorizing disclosure by the IRS must accompany the SBA form. Disclosure of tax information to the SBA Ombudsman is dependent on a properly completed Form 8821 signed the by the taxpayer.

    1. The Taxpayer Account Operations (TAO) SBREFA Analyst will fax the case to the Area SBREFA contact responsible for the taxpayer's geographic region.

    2. The Area SBREFA contact will forward the case by fax to the Local Taxpayer Advocate (LTA) responsible for that case.

    3. Within 10 workdays, the LTA will notify the SBA Ombudsman by correspondence which office is assigned the case.

    4. Within 30 workdays, the SAA should draft a closing letter for the NTA's signature to the SBA Ombudsman for review/revision by the TAO SBREFA Analyst.

    5. The TAO SBREFA analyst will send the closing letter to the SBA Ombudsman after it is signed by the National Taxpayer Advocate.

    6. The TAO SBREFA analyst will send a copy of the signed letter to the LTA so that the case can be closed on TAMIS.

  4. If the taxpayer selects option " 2" to allow disclosure to the relevant Federal government agency or option "3" to allow full disclosure and does not complete a Form 8821 authorizing disclosure by the IRS to the SBA:

    1. The TAO SBREFA analyst will fax the case to the Area SBREFA contact responsible for the taxpayer's geographic region.

    2. The Area SBREFA contact will forward the case by fax to the LTA responsible for that type of problem.

    3. Within 10 workdays, the LTA will issue an interim response with no taxpayer identification (except the taxpayer's name) to the SBA Ombudsman. No tax information may be disclosed.

    4. Within 30 workdays, the SAA should draft a closing letter to the SBA Ombudsman for review/revision by the TAO SBREFA Analyst.

    5. The TAO SBREFA Analyst will send the closing letter to the SBA Ombudsman after it is signed by the National Taxpayer Advocate. No tax information may be disclosed.

    6. The TAO SBREFA Analyst will send a copy of the signed letter to the LTA so that the case can be closed on TAMIS.

13.1.10.9  (10-31-2004)
Accounts in Criminal Investigation (CI)

  1. There are many taxpayers in our system who have legitimate problems with their accounts that need to be corrected regardless of the freeze codes on their accounts. Any accounts with a:

    • Transaction Code (TC) 910;

    • TC 914;

    • TC 916;

    • TC 918;

    • "-Z" Freeze Code;

    • "Z-" Freeze Code; or

    • "P-" Freeze Code with Category Code "CRIM" in the Control base,

    require Special handling. These codes indicate Criminal Investigation (CI) involvement in the case. Do not inform the taxpayer about the Criminal Investigation. CI sometimes reviews tax returns to determine if criminal activities such as refund schemes and the like are present on a return. Criminal Investigation has set up Fraud Detection Centers (FDC) at each of the campuses to centrally control these returns.

  2. When you see these codes in your IDRS research, the case should be transferred to the TAS office co-located with the FDC controlling the case. Case advocates should contact the Questionable Refund Detection Team (QRDT) within the local FDC, for the status of the account and follow the QRDT's instructions on how to handle the case. In most instances, the QRDT will determine the status of any previous refund inquiry and notify the TAS office. Depending on the nature of the account, either you or QRDT will contact the taxpayer.

  3. If an inquiry indicates the taxpayer is suffering or about to suffer a significant hardship (criteria 1–4), contact the QRDT to determine if a refund is appropriate.

  4. For a CI case to meet TAS criteria 5–7, it must be more than 6 weeks since the return was filed and more than 180 calendar days from the initial inquiry. Criteria is met when CI indicates a promise date and that date has passed. Case activity must be coordinated with CI and cannot be closed until the determination is made and all appropriate actions post.

  5. If you receive a CI case identified as a "no contact" case in the account history, TAS Case Advocates must still follow IRM 13.1.7 procedures regarding timely initial case contact; however, disclose no taxpayer account information unless CI approves the disclosure.

  6. Cases placed in the program and later determined to have criminal involvement may be closed after documenting the case history that CI advised the case advocates of criminal involvement. A closing letter is required with appropriate language as determined by CI.

  7. Cases involving a scheme in which the taxpayer may be an injured party should not be automatically excluded from the program. Cases should be reviewed to determine the appropriate action. Cases cannot be closed until all appropriate actions have been completed and posted to the account. See IRM 13.1.7.10, Closing Criteria for more information on when a CI case can be closed.

13.1.10.10  (10-01-2001)
Cases Processed Under the Jurisdiction of Chief Counsel and TE/GE

  1. There are times when taxpayers want to request written guidance on issues under the jurisdiction of the Chief Counsel or the Commissioner (Tax Exempt and Government Entities). The most requested form of written guidance is the letter ruling. The National Office issues letter rulings to taxpayers on prospective transactions and certain completed transactions. The procedures for issuing letter rulings and technical advice are contained in revenue procedures designated by the current year. Refer to the Intranet for current letter ruling procedures and user fees.

  2. If contacted by a taxpayer concerning letter rulings, advise them that, generally, the appropriate user fee must accompany all requests for letter rulings, determination letters, and closing agreements.

  3. Advise taxpayers that the time needed to process a ruling request is affected by many variable factors including present inventory of cases, complexity of the issue, whether there is legal precedent for the requested ruling and whether the request was properly submitted in accordance with the Revenue Procedure.

  4. Generally, taxpayers that have not received responses within the indicated time frames may write or call the contact person on the acknowledgment letter. If you receive this type of case, contact the Operating Division having jurisdiction for information about the case.

13.1.10.10.1  (10-01-2001)
Request for Assistance in Which Counsel has Jurisdiction

  1. When a taxpayer requests assistance from TAS in a case in which jurisdiction rests with Chief Counsel, the TAS employee should advise Counsel that a request for assistance has been made and seek any information that Counsel has with respect to the issues.

  2. The types of cases in which Chief Counsel generally has jurisdiction include cases that are in or have been referred for litigation (Tax Court and other court cases), cases involving requests for technical advice or a letter ruling, or other types of non-docketed cases requiring legal assistance (closing agreement cases).

  3. When it is unclear whether a case is within the jurisdiction of Chief Counsel, an inquiry should be directed to the Division Counsel SB/SE contact. See IRM 13.1.10.2 for more information on this topic.

13.1.10.10.2  (04-01-2003)
Processing Times for Letter Rulings

  1. The Associate Chief Counsels of the various counsel functions are responsible for issuing letter rulings.

    • Form 1128 — Application to Adopt, Change or Retain a Tax Year Cases are generally completed in 60 to 90 days.

    • Form 3115 — Application for Change in Accounting Method

    • There are a large volume of these requests and processing time varies based on receipts, staffing, and case complexity. The average processing time for a case with little complexity is 9–12 months.

  2. All Other Letter Ruling Requests

    • Twenty-one day cases — Most letter ruling requests require the Chief Counsel branch receiving the request to contact the taxpayer within 21 days of receipt in the branch. If the ruling request is one requiring a call within 21 days and no call or other contact has been received, the taxpayer may call or write to the contact person listed on the acknowledgment letter.

    • If the ruling request is for a change in accounting method or a change in accounting period, the office receiving the request should make contact within 21 days. A taxpayer inquiring about the status of his/her request may call or write to the contact person shown on the acknowledgment letter.

13.1.10.10.3  (04-01-2003)
Tax Exempt and Government Entities Division (TE/GE) Ruling Requests

  1. The Commissioner, Tax Exempt and Government Entities Division, is responsible for the processing of the following forms:

    • Form 5308 — Ruling Request for Change in Plan/Trust Year — 30 to 60 day completion.

    • Form 1128 — Application to Adopt, Change or Retain a Tax Year—30–60 day completion.

    • Form 3115 — Application for Change in Accounting Method — Four to six month completion.

    • Opinion Letter Requests — Employee Plans is responsible for issuing opinion letters to sponsors of Master and Prototype (M&P) Plans. Generally, opinion letters are issued within four to six months; however, case processing may take longer following the passage of major pension legislation.

    • Form 1023 or 1024 — Application for Recognition of Exemption —These forms are sent directly to the Ohio Key Office (Cincinnati POD) by the organization. Allow 120 calendar days for subsequent contact (not necessarily completion). Taxpayers can call 1-877-829-5500 to check on the status of the determination to be an exempt organization.

  2. All Other Exempt Organizations or Employee Plans Ruling Requests are generally completed from two to six months. Ruling requests are assigned to technical personnel within a short time after receipt in the appropriate office.

  3. General Information Cases — Requests for general information about employee plans or exempt organizations are answered generally within 60 days from the date of receipt in the National Office.

13.1.10.11  (04-01-2003)
U.S. Possession(s) including Requests for Certificate of Filing

  1. Cases involving a certification of filing, U.S. possession or territory issue is a direct transfer to the International TAS office (DO66).

13.1.10.12  (04-01-2003)
Automated Levy Program Procedures on Taxpayer Advocate Cases

  1. This section provides information on the Automated Levy Program. Automated levies are divided into three categories:

    1. Federal Payment Levies

    2. State Income Tax Levies

    3. Other Automated Levies, such as Alaska Permanent Fund Dividend Levy Program in TAS.

13.1.10.12.1  (04-01-2003)
Federal Payment Levy Program (FPLP)

  1. IRC §6331(h) authorizes the IRS to issue systemic continuous levies against certain federal payments. The law allows up to 15% of specified federal payments to be levied.

  2. The Department of the Treasury, Financial Management Service (FMS) is the disbursing agent from many of the federal payments that can be levied.

  3. FPLP is a paperless, automated levy program the IRS has implemented with FMS that will systemically attach 15% of certain federal payments made by FMS.

13.1.10.12.1.1  (10-31-2004)
Federal Payments Subject to Levy

  1. An interagency agreement between the IRS and FMS has been developed and includes Federal Payment Levy issuance on the following:

    1. Federal retirement income disbursed for the Office of Personnel Management

    2. Federal (non military) vendor payments

    3. Federal employee travel voucher advances and reimbursements

    4. Federal employee salaries disbursed through the U.S. Department of Agriculture National Finance Center and the U.S. Department of Interior National Business Center

    5. Military (Defense Finance Accounting Service) contractor payments

    6. Social Security benefit payments under Title II (Old Age, Survivors and Disability Insurance) of the SS Act Dependent child benefits, lump sum death payments and Prouty benefits (recipients who are aged 72 on or before 1971)), under Title II are NOT subject to the levy. Supplemental Security Income (SSI) payments and payments with partial withholding to repay a debt owed to Social Security are also not subject to the FPLP.

      Note:

      The Social Security Benefit payments of IMF taxpayers will be excluded from an FPLP levy if their total positive income on their latest tax return is below the amount shown in LEM 5.19.9.3.2.1 and there is no TDI (Status 03) for any subsequent year. Refer to IRM 5.11.7.2.5.2, SSA No Levy Indicator .

  2. For jointly filed returns, the levy will attach only to the primary taxpayer's benefit payment.

  3. If a taxpayer is receiving two or more types of federal payments that are avail