25.4.2  "Caution Upon Contact" Taxpayer

25.4.2.1  (07-08-2008)
Introduction

  1. The designation of "Caution Upon Contact" must be based on reliable evidence or information. There must also be a nexus to tax administration.

  2. Taxpayers must be identified by Social Security Numbers and/or Employer Identification Numbers.

  3. A PDT designation takes precedence over a CAU designation. As a result, taxpayers who have been identified as PDT's cannot be simultaneously designated with the CAU indicator.

  4. The following criteria have been established for determining CAU status:

    1. Threat of physical harm that is less severe or immediate than necessary to satisfy PDT criteria;

    2. Suicide threat by the taxpayer; or

    3. Filing or threatening to file a frivolous lien or a frivolous criminal or civil legal action against an IRS employee or contractor or an IRS employee's or contractor's immediate family member.

    Note:

    The preceding criteria were approved by Chief Counsel. Adherence to the criteria is essential to ensure compliance with the Privacy Act. If a particular situation represents a borderline case in the application of the above criteria, the determination should be made in favor of the CAU designation (erring on the side of caution) for the protection of Service employees.

  5. A taxpayer who meets any of the above criteria should be approached with caution.

25.4.2.2  (07-08-2008)
Reporting to the Office of Employee Protection (OEP)

  1. Employees will complete and submit a Caution Indicator Referral Report, Form 13090, to the OEP via fax, mail or a secure E-mail message. Employees should provide a copy of the completed form to their immediate manager.

  2. The form should contain a minimal amount of tax information and only what is necessary to establish a nexus to tax administration.

  3. When preparing Form 13090, employees should be sure to:

    1. State only the facts necessary to explain the incident;

    2. Provide the taxpayer's Social Security Number or Employer Identification Number; and

    3. Describe the exact words, body language or gestures made by the taxpayer.

25.4.2.3  (07-08-2008)
Office of Employee Protection's Role

  1. The OEP will:

    • Initiate a CAU case

    • Evaluate the Caution Indicator Referral Report, Form 13090, against the CAU criteria

    • Make a determination as to whether or not CAU criteria have been met

    • Input and remove the CAU indicator to and from IDRS/Master File and Non-Master File accounts

    • Maintain the CAU Indicator database

    • Function as liaison with General Legal Services (GLS)

    • Provide information and feedback to the referring employee and the referring employee's manager as to the case disposition

    • Perform CAU five-year reviews

25.4.2.4  (07-08-2008)
CAU Determination and Appeal

  1. The Chief, OEP has the authority to make all CAU determinations.

  2. Cases determined to not meet CAU criteria can be appealed by the referring employee's manager.

  3. The referring employee's manager should contact the OEP, either in writing or by telephone, to discuss the reasons for disagreement.

  4. If an agreement is not reached between the OEP and the employee's manager, the OEP will forward the case to GLS. GLS will make a final decision on the determination.

25.4.2.5  (07-08-2008)
CAU Indicator

  1. Input and removal of the CAU indicator onto IDRS is restricted to the OEP.

  2. Input of the CAU indicator will result in "CAU" appearing on the systems and documents listed in Exhibit 25.4.2-1.

25.4.2.6  (07-08-2008)
CAU Indicator versus PDT Indicator

  1. If a CAU case meets PDT criteria rather than CAU criteria:

    1. The OEP will notify the referring employee and his/her manager that a PDT case will be initiated on the reported incident.

    2. The OEP will contact the referring employee's local TIGTA Field Division to begin an investigation and to initiate a PDT case.

25.4.2.7  (07-08-2008)
Five-Year Review of CAU Records

  1. A CAU indicator will remain on the taxpayer's IDRS/Master File and/or Non-Master File account for five years, at which time, the status will be reevaluated by the OEP.

  2. Any taxpayer who has been designated with a CAU indicator for five years, and who meets one or both of the following criteria, will retain the CAU indicator for an additional five-year period:

    1. An additional CAU or PDT referral was made during the five-year period under review and/or

    2. There is current IRS activity at the time of the review.

  3. If the taxpayer does not meet either of the above criteria, the OEP will remove the CAU indicator from that taxpayer's IDRS/Master File and/or Non-Master File account.

Exhibit 25.4.2-1  (07-08-2008)
List of "CAU" Coded Systems and Documents

The CAU indicator will be reflected on the following:

  • National Computing Center (NCC) Transcripts (except Privacy Act Transcripts)

  • Microfilm Replacement System (MRS)Transcripts

  • Audit Information Management System (AIMS)

    • AIMS Display (AMDIS)

    • AIMS Weekly Updates

    • AIMS Charge-Out (Form 5546)

  • Federal Tax Deposit (FTD) Alerts (BMF only)

  • Integrated Data Retrieval System (IDRS) Transcripts

    • Tax Modules (TXMOD)

    • Entity Modules (ENMOD)

    • Summary Modules (SUMRY)

    • Taxpayer Delinquent Inquiry (TDINQ)

  • Corporate Files On Line (CFOL) Modules

    • Individual Master File On Line (IMFOL)

    • Business Master File On Line (BMFOL)

    • Information National On Line Entity (INOLE)

  • Balance Due Accounts

  • Return Delinquency Accounts

  • Daily Transaction Registers (DTR's)

  • Integrated Collection System (ICS) screens

  • Automated Collection System (ACS) Web

  • Examination Returns Control System (ERCS) screens


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