Full Compliance Check is required on all balance due calls to identify if the taxpayer filed and paid all types of tax, penalties and interest for which the service has identified them as potentially liable. Research the account for return delinquency modules, including cross-reference taxpayer identification numbers displayed on all Master Files. If a taxpayer is self employed and has a cross reference Employer Identification Number (EIN), research the BMF side of the account to determine if the taxpayer has any outstanding balances/open Taxpayer Delinquency Investigations (TDI) that must be addressed. For sole proprietors, if research shows there are balances due or return delinquencies on both the IMF and BMF accounts, IMF can transfer the call to BMF #92025.

Determine liability based on the information in IRM 5.19.2.6.4.5IMF-Determining Liability

If the IMF TDI can not be closed and the taxpayer is requesting an installment agreement, take the following actions on the balance due account:

IMF taxpayers may still qualify for the Full Pay within 60 to 120 day agreement even with open TDI’s. IRM 21.3.12.4.3 (5) Taxpayer Can Full Pay Within 60 to 120 Days - IMF, BMF Out-of-Business or BMF In-Business Non-Trust Fund Accounts

AM employees including those that work NSIA do not have the authority to open a TDI.

BMF-Establish whether the taxpayer filed all returns identified as delinquent. Determine liability based on the information in IRM 5.19.2.6.5.4BMF Determining Liability.

To address unfiled current year IMF/BMF returns, see the table below.

For IMF taxpayers, if the return is not filed but no TDI has been open, address the unfiled return by advising the taxpayer of the missing return and the need to file. Then continue with normal collection procedures for balances owed.
For BMF accounts, taxpayers must be in compliance in filing all tax returns. Determine if an open TDI exists. If there is no open TDI follow normal collection procedures.

Annotate full compliance check (FCC) completed on AMS. If the returns are missing but there are no open TDIs annotate AMS that the missing returns have been addressed.

Many times a taxpayer will request an explanation on how the penalties are assessed on a balance owed.

Failure to pay penalty is charged on unpaid tax only (Unlike interest which is charged on the total balance owed). For each month or part of a month the tax remains unpaid the taxpayer is subject to FTP penalty. The normal rate for FTP penalty is 1/2% per month. The total FTP charged can not exceed 25% of the total tax owed.

The penalty is charged for the month if the balance remains unpaid from the first day of the month. This means if the taxpayer owes on 4–15 and then full pays the account on 5–16, the taxpayer will owe 2 months of FTP. This is because as of the first day of the next month (5–15) the balance went unpaid.

The FTP penalty will increase to 1% for any month following:

FTP is module specific. This means the amount of FTP charged is unique to each module. All modules are not necessarily charged at the same rate.

For any taxpayer that files a return on or before the due date (including extension) and requests an installment agreement the penalty will decrease to 1/4 percent for any month that begins on or after the taxpayer has entered into an installment agreement. Taxpayers charged a Failure to File Penalty are not eligible for the FTP decrease. The date the agreement goes into effect is identified by a TC 971 ac 063. The 1/4 percent rate will end the month following a termination of the agreement. See IRM 20.1.2.2.8.1.2 1/4 Percent Penalty Rate- IRC 6651(h) for more information.

CC INTSTD will show the current FTP rate and accruals.

An ASFR assessment can be identified by the following:

.

If the taxpayer disputes a balance due as a result of an Substitute For Return (SFR) assessment, research the account to determine if the taxpayer filed a return.

If taxpayer has filed a tax return under the spouse's SSN but there is an SFR assessment on the taxpayer's account:

If the taxpayer wants to enter a payment agreement for any balance due including the SFR assessment, follow the procedures in IRM 21.3.12.4, Determine the Earliest The Taxpayer Can Full Pay.

For more information on taxpayer disputes involving a balance due as a result of a SFR assessment IRM 5.19.1.3.3.2, Adjusting Tax for a Balance Due.

When a taxpayer fails to file required returns, files false or fraudulent returns, IRS prepares returns under IRC section 6020(b) and processes them as originals. A 6020(b) return is identified on a tax module by the literal 6020(b) at the end of the TC 150 Document Locator Number (DLN), Computer Condition Code (CCC) 4 and certain closing codes posted with TC 59X. Some of the most common closing codes are 08, 09, 38, 39, 63, and 64.

If the taxpayer disputes a balance due as a result of a return filed under IRC section 6020(b), take the following actions:

If the taxpayer claims to be a victim of identity theft after the balance due notice is explained, see IRM 21.9.2.3, Identity Theft - Telephone Overview

If the taxpayer disputes a balance due as a result of an AUR assessment, the taxpayer must substantiate the reason for their disagreement with the AUR assessment.

If the taxpayer requests a copy of the AUR notice, follow procedures in IRM 21.3.1.4.-60, Copies of CP 2000/2501/2893C.

If the taxpayer's contact is in reference to a CP 2000, follow the procedures in IRM 21.3.1.4.59, Resolving or Referring Underreporter Cases.

If the taxpayer wants to enter into a payment agreement for any balance due including the AUR assessment, follow the procedures in IRM 21.3.12.4, Determine the Earliest The Taxpayer Can Full Pay.

If the taxpayer wants to enter into an agreement but the assessment has not posted to IDRS, see IRM 21.3.12.4.5.1 Pre-assessed Installment Agreements (IAPND) and Unassessed Modules.

If the taxpayer claims to be a victim of identity theft after the balance due notice is explained, see IRM 21.9.2.3, Identity Theft - Telephone Overview

If the taxpayer disputes a balance due as a result of an audit assessment, take the following actions:

If the taxpayer wants to enter a payment agreement for any balance due including the audit assessment, follow the procedures in IRM 21.3.12.4, Determine the Earliest The Taxpayer Can Full Pay.

If the taxpayer disputes a balance due as a result of a math error and can substantiate why the math error assessment is not correct, refer to IRM 21.5.4.4.4, Math Error Substantiated Protest Processing

If the taxpayer disputes a balance due as a result of a math error but cannot substantiate why the math error assessment is not correct, refer to IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing.

If the taxpayer disputes a balance due as a result of a missing payment or Federal Tax Deposit (FTD), attempt to locate the payment per IRM 21.5.7.3, Missing Payments Research.

If the payment is found, refer to IRM 21.5.8.4, Credit Transfer Processing.

If the taxpayer disputes owing a balance due because they are an innocent spouse, follow procedures in IRM 21.6.8.7(5), MFT 31 Procedures.

If the spouse requests an installment agreement and there is an unreversed TC 971 ac 065 (Innocent Spouse request completed/reversed) on any balance due module, take the following actions:

The Service, under Internal Revenue Code (IRC) 6672, is permitted to assess a Trust Fund Recovery Penalty (TFRP) against any person required to collect, account for and pay over taxes held in trust who willfully fails to perform any of these activities, or willfully attempts to evade or defeat any such tax or it's payment. This penalty applies to employers who are required to file employment tax returns and are responsible for withholding Federal Tax from their employees and depositing the tax timely. TFRP is a “pecuniary” penalty, meaning the government has suffered an actual monetary loss for unpaid trust fund taxes. The penalty is equal to the total amount of tax evaded, not collected, or not accounted for and paid over. For more information, see IRM 5.19.14Trust Fund Recovery Penalty (TFRP)

The responsible person may be one or more of, but not limited to, the following:

When more than one individual is assessed a TFRP, each responsible party may be assessed all or only a portion of the unpaid trust fund liability. Liability for each party is determined for each tax period with unpaid trust fund liability. A responsible party may have left the business and only owe for tax periods during the time they were involved with the business.

Though TFRP may be assessed against several individuals, the total liability is collected (ultimately retained) only once from either:

When more than one individual is assessed the penalty Transaction Code (TC) 240 with Reference Number (RN) 618), the amount collected is equal to the unpaid trust fund owed by the business entity, plus interest and fees owed by the individuals trust fund portion of the business, plus accruals for each quarter involved. This assessment will appear under the taxpayer's SSN as a MFT 55 account, for BMF under MFT 13.

If the taxpayer is questioning the assessment, complete a Form 4442 and fax to TFRP liaison. See TFRP Liaison.

Balance due issues regarding TFRP assessments, whether Can't Pay, Won't Pay, Will Pay or Bankruptcy should be worked per normal procedures provided elsewhere in this IRM. For more information, see IRM 5.19.1.4.4Trust Fund Recovery Penalty Issues

FUTA discrepancy cases result from the computerized and manual certifications of payments to State Unemployment Insurance Agencies.

Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, adjustments processed under this program can be recognized by the following non-refile blocking series on Masterfile Tax Code (MFT) 10 accounts:

If the taxpayer disputes a balance due as a result of a FUTA assessment, follow procedures in IRM 21.7.3.4.10, FUTA Certification Program ? Discrepancy Cases.

The purpose of the IRS CAWR program is to ensure that employers paid and reported the proper amount of taxes, withholding, and advanced earned income credit. CAWR cases result from a discrepancy between information reported on the employment tax returns for entire year and informational returns, such as Form W?2, Wage and Tax Statement, and Form W-3 , Transmittal of Wage and Tax Statements to the Social Security Administration (SSA)and the Form 1099-R and W-2G withholding amounts to the amounts reported on the Form 94X (Form 941, 943, 944, 945 , Schedule H (Form 1040 and Form 1041 )) employment tax returns.

CAWR tax assessments can be found on MFTs 01, 11, 14 and 16 and identified by blocking series 55 after a TC 290 assessment. CAWR civil penalty assessments can be found on MFT 13 and identified by a TC 240 with penalty reference number of 549 or 550. For a listing of 500 Series Penalty Reference Numbers refer to IRM 20.1.7?5, 500 Series Reference Numbers.

If the taxpayer disputes a balance due as a result of a CAWR assessment, instruct taxpayer to mail or fax their information to the CAWR Unit per IRM 4.19.4.11.1, CSR - Researching IRS-CAWR/SSA-CAWR Issues, with correspondence explaining the reason for lack of or late filing of documentation as demanded by law for reconsideration of assessment..

This section is for IMF and all BMF taxpayers. The following procedures are for taxpayers making full payment on the account within 10 days. If the taxpayer is requesting a payoff figure and the accounts are in status 60, see IRM 21.3.12.5.1 Taxpayer Requests An Installment Agreement Payoff Amount

If there is no balance present:

Ask the taxpayer if there is any recent payment(s) or levy(s) potentially affecting their account balance. Reduce the payoff amount by anticipated credits not yet pending on IDRS.

Before determining the payoff amount, it is necessary to ask the taxpayer how they will be making the payment (for example: mailing, credit card etc.) See the table below to determine the computation date to be used for each method of payment.

Research the account to ensure all balances are included in the payoff calculation. If there are accounts in status 23 or 53 and there is no TXMOD up for the accounts additional steps must be taken to include these modules.

Advise the taxpayer to make the check or money order payable to "United States Treasury." The following should be notated on the check or money order:

Provide the taxpayer with correct mailing address. See SERP Who/Where-Where to File- Forms and Payments for the correct mailing address.

If the taxpayer is full paying the account, input CC STAUP (do not input if account is in status 6X) to hold the collections notices and allow time for the payment to post.

Document the amount and computation date on AMS or CC ENMOD if AMS is not available.

IMPORTANT ? The procedures in this sub-section apply only to IMF, BMF out of business or BMF in?business non?trust fund accounts . Taxpayers who are in?business with an open trust fund tax filing requirement are not eligible for a 11 to 59 day full pay agreement for past due trust fund taxes. In these cases, follow procedures in IRM 21.3.12.4.7 In-Business Trust Fund (IBTF) Express Agreement Criteria.

Compute the payoff using the If and Then chart in IRM 21.3.12.4.1(4) Can Full Pay Balance Due Now (Payoff within 1 to 10 days)). Document the amount and computation date on AMS.

Provide the taxpayer with correct mailing address. See SERP Who/Where-Where to File- Forms and Payments for the correct mailing address.

Advise the taxpayer to make the check or money order made payable to "United States Treasury." Provide the taxpayer with the check/money order annotations. See IRM 21.3.12.4.1 (6) Can Full Pay Balance Due Now (Payoff within 1 to 10 days)

If the taxpayer is full paying the account input CC STAUP to hold the collections notices and allow time for the payment to post.

IMPORTANT ? Taxpayers who are in?business with an open trust fund tax filing requirement are not eligible for a 60 to 120 day full pay agreement for past due trust fund taxes. In these cases, follow procedures in IRM 21.3.12.4.7 ,In-Business Trust Fund (IBTF) Express Agreement Criteria The procedures in this sub-section apply only to IMF, BMF out of business or BMF in?business non trust fund accounts.

Such agreements may be granted on assessed or pre-assessed balances. If the balance has not yet been assessed see Exhibit 5.19.1–9IDRS Input of Pre-assessed IAs and Full Pay Agreements.

These procedures also include taxpayers who claim they are filing a refund return or an amended return that will full pay their balance due.

The taxpayer can request more than one full pay agreement provided the total time does not exceed maximum 120 days.

If the taxpayer has an open TDI, s/he may still qualify for the Full Pay within 60 or 120 day agreement. However, the agreement cannot be input using CC IAGRE. Advise the caller a hold will be placed on the account for 9 weeks and establish a firm date for filing the missing returns. Once the return is filed, they may call back for the additional 30–60 days if necessary . Input STAUP for 9 cycles and notate AMS with date the Full Pay Agreement began. Update AMS with the date for filing the missing return along with the full pay information. Input CC STAUP following the guidelines in IRM 21.3.12.4.2 Taxpayer Can Full Pay Within 10 to 59 Days and send a Letter 681C.

If the taxpayer qualifies for a 60 to 120 days full pay agreement:

If there are any accounts with balances showing on IMFOLI but there is no TXMOD available, the accounts are either in status 53, TC 530 present, or 23. Input the CC IAGRE prior to using CC MFREQ to create the accounts on IDRS. If there are other balances on the account the IA will have to be input as an un-assessed module. This will allow the MFREQ'd accounts to be added into the agreement after the accounts return to IDRS. See IRM 21.3.12.5.5 Adding a New Module to an Existing or Defaulted Agreement for information on the input an unassessed module. If the only modules involved in the agreement are in status 23 or 53, and they are not current on IDRS, you must reverse the TC 530 or CC MFREQ the status 23 accounts. Create a (in house) Form 4442 referral to have the Full Pay Agreement input once the accounts return to IDRS,

For IMF: If the assessed balance due is $100,000 or more, and the taxpayer cannot full pay in 120 days, transfer the call to:

When a request for an agreement involves a SSN and EIN (both IMF and BMF) for a Sole Proprietor, combine the aggregate assessed balance of assessment (CC SUMRY balance) of all modules. Determine if the taxpayer meets the requirements to qualify for an installment agreement. An IMF account and related BMF account must be included in one agreement. Employees on IMF applications can transfer calls to BMF (#92025) if a BMF balance due or return delinquency exists.

IDRS Input of Installment Agreements, CC IAORG for information in inputting a cross reference IA.

If there are 2 related IMF accounts, determine the account with the earliest CSED and input the agreement under that SSN with the cross reference to the other SSN. See IRM 5.19.1–7

Research the accounts to determine if there is a potential CSED issue. The CSED is usually 10 years from the date of assessment. CC IMFOLT will show up to three CSED for the given tax module.

If there are any accounts with balances showing on IMFOLI but there is no TXMOD available, the accounts are either in status 53, TC 530 present, or 23. Input the CC IAGRE prior to using CC MFREQ to create the accounts on IDRS. If there are other balances on the account the IA will have to be input as an un-assessed module. This will allow the MFREQ'd accounts to be added into the agreement after the accounts return to IDRS. See IRM 21.3.12.5.5 Adding a New Module to an Existing or Defaulted Agreement for information on the input an unassessed module. If the only modules involved in the agreement are in status 23 or 53, and they are not current on IDRS, you must reverse the TC 530 or CC MFREQ the status 23 accounts. Create a (in house) Form 4442 referral to have the Full Pay Agreement input once the accounts return to IDRS.

Determine if BMF account balance due includes trust fund modules and taxpayer has an open trust fund tax filing requirement (i.e., MFTs 01, 03, 09, 11, 12, 14, 16 and 72):

Determine if taxpayer's BMF account is in business:

If the IMF only taxpayer is in compliance, determine if the balance due and payment proposal meet guaranteed or streamlined installment agreement criteria.

Guaranteed Installment Agreement, IRC 6159 (c), requires the IRS to accept the taxpayer's proposal of an IA if the following conditions are met:

Streamlined Installment Agreement (SIA) is considered when the aggregate assessed balance (CC SUMRY) is $25,000 or less, can be paid in full within 72 months and the CSED is protected. The type of taxpayers that qualify for a SIA are: IMF, Out of Business and BMF income ONLY (Form 1120 ) see, IRM 5.19.1.5.5.3, IMF/BMF Related Accounts, for additional information.

In January 2012, all NSIA and PPS employees are authorized to establish Streamlined IAs between $25,001 and $50,000 when the taxpayer meets the following criteria:

If a BMF taxpayer owing more than $25,000 aggregate unpaid balance of assessment, they can choose to reduce their liability to $25,000 or less making a lump sum payment in order to participate. Accounts Management (AM) employees cannot process the Lump Sum option. See IRM 5.19.1.5.5.1.1 , Lump Sum Payment for IBTF Express ONLY. AM employees will:

For a BMF taxpayer only: In-Business Trust Fund (IBTF) Agreement can be considered for small businesses who have an unpaid balance of assessment of $25,000 or less. AM employees are authorized to establish IBTF Express Agreements up to $10,000 in unpaid balance of assessments, see IRM 21.3.12.4.7, In-Business Trust Fund (IBTF) Express Agreement Criteria.

Non-streamlined Installment Agreement (NSIA) is considered when the IMF, sole proprietorship, and Out of Business only taxpayer cannot qualify for a Streamlined Installment Agreement. A complete financial statement must be completed to determine the monthly payment amount. See IRM 21.3.12.4.6, Proposal Does Not Meet Guaranteed or Streamlined Installment Agreement Criteria

Advise the taxpayer of the three types of installment agreements available:

In accordance with the law, each year the IRS mails a Notice CP 89, Annual Installment Agreement Statement, to every taxpayer with an IA. The statement provides:

Prior to transferring the call to NSIA, ask the taxpayer if they can answer questions relating to their monthly expenses. Examples would include: mortgage/rent payments, utility bills, food, and car payments. If the taxpayer cannot provide this information do not transfer the call. Follow the procedures in paragraph 4.

If the taxpayer has financial information available and you are on a Non-Streamlined Installment Agreement (NSIA) application, follow non- streamlined procedures in IRM 5.19.1.6, Securing Financial Information.

If the IMF taxpayer has financial information available, but you are on IMF SIA application, transfer to Non-Streamlined Installment Agreements per Telephone Transfer Guide.

If the taxpayer does not have financial information available take the following account actions:

Accounts Management (AM) employees are authorized to establish IBTF Express Agreements up to the aggregate assessed balance (CC SUMRY) of $10,000 .

In order to participate in the new IBTF Express Agreements, taxpayers must meet the following criteria:

If AM receives a request for an IBTF Express Agreement AM employees will research the account to determine:

Taxpayer meets all IBTF criteria and is in full compliance:

If the taxpayer has a IBTF-Express Installment Agreement, they can convert to a IBTF-Express DDIA per IRM 5.19.1.5.5.13.1 (8), Direct Debit Installment Agreement - Form 433–D , Installment Agreement, and Form 9465, Installment Agreement Request, and meet all of the requirements listed in (2) above.

The Installment Agreement (IA) User Fee allows the IRS to recover costs of administering the IA program. The IA user fees are structured as follows:

The origination fee is established by regulation and cannot be waived for any reason for any installment agreement. The reinstatement/revision fee can only be waived for those reasons cited in paragraph (5) below. Hardship criteria does not apply to the user fee.

The user fee is non-refundable even if :

See the table below for when to charge a user fee.

The user fee can not be waived due to hardship or based on an individual decision from an IRS employee. If the taxpayer qualifies for the reduced user fee, the computer will automatically recognize the situation and charge the appropriate fee. To provide the taxpayer with the correct user fee amount, research CC ENMOD for the Low Income Indicator, (LII). The chart below will provide guidance for when the user fee can be waived.

The user fee module is created when the CP 521, Installment Agreement Reminder Notice, generates and a TC 694, Designated Payment Code (DPC) 49, 50 or 51 posts to Master File. User Fee modules are created on IDRS under MFT 13 (BMF) or MFT 55 (IMF).

The User fee transfer program, or "sweep", is run every weekend after four (4) cycles on accounts with unpaid user fees. The user fee will be systemically screened for payments to satisfy the user fee amount. If during the sweep there is not a sufficient amount of payment to cover the entire user fee amount, the fee will not be taken at all during that sweep. (No partial amount will be taken).

Change the payment amount, payment due date, payment due cycle, and any other data requiring updates using CC IAGRE to generate CC IAREV. If manual transfer of the User Fee is necessary see the table below.

Once the originator fee is paid, update the user fee to "Y", revised/reinstated fee due.

For additional information on the user fee, see IRM 5.19.1.5.5.5Installment Agreement Payment Methods and User Fees (UF) Overview

When speaking to the taxpayer, advise them verbally a user fee is charged and is taken from their first payment(s). Research the account to determine if the taxpayer qualifies for the reduce fee. CC ENMOD will show the Low Income Indicator (LII). Provide the taxpayer with the appropriate user fee to be charged.

Advise the taxpayer verbally or in writing the terms of the agreement. If sending a Letter 681C or Letter 2273C it is only necessary to advise the taxpayer a confirmation letter is being sent. Advise the caller the terms of the agreement are explained in the letter.

If verbally providing the caller the terms of the agreement, advise them:

Advise the taxpayer verbally or in writing how to annotate the check. If sending a Letter 681C or Letter 2273C it is only necessary to advise the taxpayer the information on how to annotate the check is contained in the letter. If providing the information verbally, advise the taxpayer of the following:

Provide the taxpayer with correct mailing address. See SERP Who/Where-Where to File- Forms and Payments for the correct mailing address.

If the taxpayer asks how the payments are applied, explain payments are applied in the following order:

Taxpayers cannot delegate installment agreement payments. Payments are applied to the balance with the oldest CSED.

When the taxpayer enters into a payment arrangement, either a 60 to 120 day agreement or installment agreement, it is necessary to confirm the conditions of the agreement in writing.

For installment agreement requests the following information should be included in outgoing balance due correspondence (Letters 2273C or 3127C):

Do not provide a lockbox address in any "C" letters. Lockbox will only process payments with the CP 521, Installment Agreement Reminder Notice, or CP 523, Installment Agreement Default Notice.

Providing the taxpayer with their current balance due in outgoing correspondence is not required when the taxpayer has contacted us and set up an agreement which will pay the balances owed.

For Full Pay Within 60 to 120 day Agreement requests the following information should be included in outgoing balance due correspondence Letter 681C :

Currently Not Collectible send the Letter 4624CCase Closed -- Currently Not Collectible; Lien Filing Notification on Currently Not Collectible which should include the following:

All other issues should be handled accordingly and address the taxpayer's requests and concerns.

If multiple issues are involved, select the letter that best addresses the main issue. Use open paragraphs to address any additional IRS or taxpayer issues.

Determine if the taxpayer has filed all returns through the date of business closure. If Yes, continue on to (2) below. If No take the following actions:

Determine if the aggregate assessed balance is $25,000 or less, without trust fund accounts, and the taxpayer agrees to an agreement that will full pay within 60 months or before the CSED, whichever is earlier. If No, continue on to (3) below. If Yes, take the following actions:

If the aggregate assessed balance is more than $25,000 and/or the taxpayer does not agree to an agreement that will full pay within 60 months or before the CSED, whichever is earlier, take the following actions:

If the assessed balance due is ≡ ≡ ≡ ≡ ≡ ≡ or more, transfer the call to:

Accounts that cannot be closed Currently Not Collectible by Compliance and AM:

Accounts can be removed from the collection process. Accounts may be reported CNC for a variety of reasons using transaction code (TC) 530 on a REQ77. It is a requirement that TC 530 be defined by the appropriate closing code. The correct closing code is important because it sets a minimum total positive income amount the taxpayer can report before the TC 530 is systemically be reversed.

Determine if the taxpayer meets Front End Mirror Assessments Process for Currently Not Collectible Hardship Closures (CNC). See IRM 21.3.12.4.5.3Front End Mirror Assessments Process for Installment Agreements (IA) and Currently Not Collectible Hardship Closures (CNC) for the criteria.

A taxpayer must be in full compliance with the filing of the returns to be placed in CNC. If there are accounts in status 02/03, determine if the TDI can be closed per IRM 5.19.2.6.4.5 IMF-Determining Liability .

CNC criteria for closing accounts CNC:

When reporting an account as CNC input the TC 530 using REQ77. Input the appropriate closing code and Responsibility Unit Code 9.

For cases that do not meet exception criteria, a financial analysis must be completed. Employees working SIA applications, if the taxpayer states they cannot pay but do not meet exception criteria, transfer the call to NSIA. For employees working NSIA or PPS applications, see IRM 5.19.1.7.1.5 CNC Unable to Pay – Hardship

For accounts being closed CNC, unable to pay- hardship, send a Letter 4624C providing the taxpayer with the CNC terms. If sending the letter advising the taxpayer the CNC terms are in the letter is sufficient. See IRM 21.3.12.4.10 Balance Due Outgoing Correspondence. A verbal reviewing of the terms is not needed.

For other issues relating to CNC see: