If the affected taxpayer's account balance is above the deferral level of LEM V, accelerate to ACS.

For accounts below deferral level criteria, prepare Form 53, Report of Currently Not Collectible (CNC) Taxes, and use closing code 28. Annotate the top of the Form 53 with the name of the disaster. Include a statement documenting the impact of the disaster on the taxpayer. Attach correspondence to Form 53 and submit to manager for approval.

After approval, input TC 530 with appropriate closing code.

Maintain a disaster suspense file of affected taxpayer's accounts reported CNC.

Inability to pay account CNC is reactivated after 65 cycles if the Total Positive Income (TPI) shown on a subsequent return equals or exceeds a certain amount. Generally, follow-up is performed on these accounts. Mandatory follow-up should not be requested if the account balance is less than the deferral level in LEM V.

At the end of the suspension period for collection activities, taxpayer contacts within the covered disaster area must be made with caution and extreme sensitivity to the taxpayer’s personal circumstances. Stress and fatigue are factors requiring consideration, even in instances where taxpayers did not experience any personal, monetary, or physical damage from the disaster.

Any enforcement-related written or telephone contact made with taxpayers in the covered disaster area should begin with an assessment of the impact of the disaster on the taxpayer and should provide an opportunity to defer action for a reasonable period of time.

This section contains the operating procedures for Collection Field function (CFf).

Many taxpayers and tax practitioners in a covered disaster area may be unable to meet filing deadlines or make timely federal tax payments that become due shortly after the event.

Within 24-48 hours following a major disaster, the CFf Territory Manager (TM) has the following options pending receipt of the Disaster Relief Guideline memorandum:

Based on the Disaster Relief Memorandum, the TM may be required to suspend compliance actions in each of the covered disaster zip code areas.

When collection activity is suspended because of a disaster:

At the end of the suspension period, resume taxpayer contacts within the covered disaster area, using the soft contact procedures.

When collection activity is not suspended during a disaster period:

Collection activities requiring action:

When securing returns, documents and payments where the due date falls within the disaster relief period, consider the following:

Upon expiration of the suspension of field collection contacts, soft contacts procedures are implemented.

If the contact results in information indicating that the taxpayer is not affected by the disaster and an -O freeze was placed on the entity:

Conversely, the taxpayer may provide information indicating that they have been impacted by the disaster event. If so:

If an -O freeze is not present on the entity but the taxpayer self identifies as a disaster victim:

The -S freeze code provides filing and payment relief (interest and penalty relief) without systemically suspending collection activity.

The -S freeze applies to returns and payments that are due during the disaster relief window. The -S freeze is not applicable to late filing and payment situations established prior to the filing and payment relief period that occurred in the Disaster Relief Memorandum.

Soft contact must be used when initiating a taxpayer contact to determine whether collection activity is appropriate. Soft contact is required in four situations:

Soft contact entails approaching the taxpayer with caution and extreme sensitivity to their personal circumstances. Stress and fatigue are factors needing consideration, even in instances where taxpayers did not experience any personal, monetary, or physical damage from the disaster.

Any enforcement-related contact with a taxpayer in a covered disaster area must begin with an assessment of impact of the disaster on the taxpayer. The soft contact provides the opportunity to make that assessment on a case-by-case basis, enabling either:

If a summons was issued prior to the enforcement suspension period:

In the event of a disaster that results in IRS granting tax relief, whether or not the President issues a disaster declaration, the Office of Media Relations is responsible for preparing appropriate news releases to publicize relief activities and services. At a minimum, the publicity will provide taxpayers and practitioners with the following information:

The National Media Relations Office coordinates with the Field Media Relations Specialist(s) assigned to the area in which the disaster occurred, the National Disaster Assistance Coordinator (DPO), and Chief Counsel to secure approval of the news release text. The release is issued by the Field Media Relations Specialist(s) covering the disaster area, or by the National Media Relations Office, as appropriate.

The National Media Relations Office provides the news release to the Legislative Affairs and National Public Liaison Offices for appropriate dissemination to congressional offices and practitioner organizations. The Field Media Relations Specialist(s) provides the news release to local Governmental Liaisons for their use in notifying appropriate agencies of the relief provisions.

Communications and Liaison embedded within the operating divisions consider whether additional publicity is necessary to communicate relief provisions and activities (e.g., Practitioner Newsletter articles, mail-outs to trade associations and/or labor unions, etc.). SB/SE Stakeholder Liaison (SL) and W&I Stakeholder Partnerships, Education and Communication (SPEC) offices participate, as appropriate, in disseminating information on relief actions and assistance.

When a disaster occurs, it is essential that the Internal Revenue Service provide timely, accurate information to Congress on the steps taken to assist disaster victims with their tax affairs.

Contacts with Congressional offices on Capitol Hill are typically handled by the Director, Legislative Affairs. Contacts with local congressional offices are typically handled by field Congressional Affairs Program (CAP) contacts. See IRM 25.16.1.5(5) for the role of the State GL. The CAP helps ensure that the desired level of timely and accurate information is provided to Congress. The following types of information must be made available to both Legislative Affairs and SB/SE Governmental Liaisons on an expedited basis as soon as a Presidential Disaster Declaration or other relief procedures are issued:

SB/SE Governmental Liaisons identify, for Legislative Affairs, the Members of Congress (Senators and Representatives) whose states or districts are impacted by the disaster.

Legislative Affairs coordinates, as needed, with SB/SE Governmental Liaisons relative to notifications or other contacts with specific congressional offices.

MITS will coordinate with the DPO or designee in the Disaster Assistance Program Office.

MITS Customer Communications Branch (CCB) posts the Disaster Relief Memorandum to http://www.icce.irs.gov/fema along with an ASCII text file containing the disaster zip code listing input to the TC971 file for setting the -O and -S freeze.

MITS CSB creates and posts an Excel spreadsheet containing the zip code listings for Notice Suppression and Notice 1155 stuffers to http://www.icce.irs.gov/fema

After the web page has been updated, MITS CSB E-mails the memorandum and web page link to IMF Posting and Analysis Section for TC971 processing. MITS CSB also E-mails the memorandum to the CPS East and West so they can conduct Notice Suppression and Notice 1155 Stuffer processing.

TAS takes the following actions when contacted by a taxpayer who qualifies for disaster relief based on a Presidential or other disaster declaration or claims to be impacted by these disasters.

Use the following guidelines when processing possible disaster relief cases:

TAS coordinates with SB/SE CLD - Field GL. State, local government and congressional directives and inquiries related to disaster assistance are shared.

Special case coding may be required when using the Taxpayer Advocate Management Information System (TAMIS).

Initial contacts (telephone or written) are not made to taxpayers in the covered disaster area during the enforcement suspension period unless there are compelling reasons to do so. Intercept any correspondence that has been generated, but not yet mailed, and hold for the duration of the enforcement suspension period.

Attempt to contact the taxpayer by telephone to determine when a scheduled, but not yet initiated, examination can be rescheduled. If taxpayer contact is not possible, send a new appointment letter when postal services have been restored and postpone the examination starting date until the enforcement suspension period has expired. Consider surveying the return, if possible.

If an examination has commenced, attempt to contact the taxpayer by telephone to ascertain whether and, if so, how long the examination needs to be suspended. Do not attempt to resume the examination unless the taxpayer has been contacted by telephone or letter. Give the taxpayer additional time as needed to provide any information previously requested.

Delay issuing the examination report and 30-day letter until the expiration of the enforcement suspension period, provided sufficient time remains under the statute of limitations on assessment. If the 30-day letter has already been sent, advise the taxpayer in writing that additional time is being granted to submit a protest and request for Appeals hearing.

Delay issuing statutory notices until the expiration of the enforcement suspension period, provided time remaining under the statute permits. Because the deficiency notice must be sent to the taxpayer’s last known address to be valid, ascertain whether the taxpayer has advised the IRS, by any means, of an address change. If the notification of an address change does not rise to the level of changing the taxpayers last known address, send the deficiency notice to the last known address with a copy to the new address.

If the taxpayer was not contacted by the date of the disaster, see IRM 25.16.1.12.5(4), and follow the procedures.

For an examination in process, if a letter requesting information was sent immediately before, during, or immediately after the disaster, wait until the response date in the letter expires to ascertain if the information is furnished. If the information is not furnished or the taxpayer does not contact the IRS by the response date, attempt to contact the taxpayer by telephone. Do not treat the matter as a "no response case" until the expiration of the enforcement suspension period, at which time the letter or notice should be re-mailed, provided postal services are available.

Process cases in a 30-day or 90-day letter status as indicated above. See IRM 25.16.1.12.5.

When appropriate, allow taxpayers an opportunity to request additional time to comply with correspondence sent after a disaster.

See IRM 25.16.1.8.22 for information about summons enforcement.

Delay issuing inquiry letters until the expiration of the enforcement suspension period.

If an inquiry letter has already been sent, the IRS must either issue a notice of examination within 90 days after the date the inquiry letter is sent, terminate the inquiry without an examination, or change the organization’s tax status or liability. Therefore, contact the organization if it does not respond by the 15-day response date specified in the inquiry letter.

In dealing with a church organization, the special limitations on the period of assessment must be on taxable years that remain open under the time limits of the statute and for which tax might be assessed. Accordingly, do not delay issuing notices of examination past the end of the tax year so that an earlier tax year thereby falls outside the three or six-year periods.

Suspend until the expiration of the enforcement suspension period any letter that requires a taxpayer response, including any letters returning incomplete applications, requests for additional information, and proposed or final adverse letters.

Applications for recognition of exemption from organizations that provide disaster relief should be reviewed for handling on an expedited basis, using the facts and circumstances test. Such applications may be marked above the heading of the form by the following notation: "Disaster Relief."

Questions concerning application matters or the filing of returns relating to exempt organizations are directed to TE/GE at (877) 829 – 5500 (toll-free).

Favorable ruling and determination letters and other letters requiring no taxpayer response are issued as soon as postal services are available.

If a Headquarters conference was scheduled within the enforcement suspension period, attempt to contact the organization to reschedule.

The provisions of Rev. Proc. 92 - 85 and the application of the regulations on Procedure and Administration Section § 301.9100 – 1 should be utilized in those situations where organizations requesting exemption under the provisions of IRC § 501(c)(3), (c)(9), or (c)(17) have missed the 15 – month filing requirements due to the disaster.

IRC § 7508A permits the Secretary to postpone the time for performing specified acts by taxpayers affected by a federally declared disaster or a terrorist or military action. The period of postponement can be up to one year.

If an act is postponed under IRC § 7508Aa plan is not treated as failing to follow its terms if the act is performed by the postponed date rather than the date specified in the plan.

Regulations, at section 301.7508A -1 , provide a non-exclusive listing of acts that may be postponed and of categories of "affected taxpayers" .

An additional list of acts that may be postponed is contained in Rev. Proc. 2007-56, Rev. Proc. 2007-34IRB 388 (or subsequent guidance). Acts within the employee benefits area are listed in section 8 of the Revenue Procedure, acts relating to exempt organization issues are in section 10, and acts relating to tax-exempt bonds are in section 16.

The regulations issued under IRC § 7508A provide that taxpayers filing an Automatic Extension of Time to File, who are subsequently affected by a federally declared disaster, are entitled to postpone the filing of the return for a period not to exceed:

The Automatic Extension of Time to File and the Disaster Relief period shall run concurrently and not as an addition of time to either extension.

Some scenarios of the impact on Disaster Relief periods in conjunction with the filing of Automatic Extension of Time To File US Individual Income Tax Return include:

When an area is designated as a federally declared disaster area (or in the case of a terrorist or military action), the IRS issues a notice or other guidance (such as a news release) specifying the acts postponed, for whom, and the period of postponement. Such guidance refers to the Regulation and Revenue Procedure (described above) for the acts postponed and taxpayers impacted.

The Commissioner, LMSB, designates an LMSB Executive/Senior Manager to act as the LMSB Disaster Coordinator.

The LMSB Disaster Coordinator duties include:

LMSB managers follow the guidelines contained in the Disaster Relief Memorandum issued by the Director, CLD, in dealing with LMSB taxpayers in the disaster covered area for impacted taxpayers.

LMSB managers should be prepared to address the disaster as follows:

Refer to IRM 25.16.1.8.22, for information on summons enforcement.

Examiners/Managers should be prepared to respond to a variety of tax and procedural questions from taxpayers during/after a disaster. LMSB Team Managers should contact taxpayers currently under examination to determine the impact on the taxpayer following the disaster.

LMSB Team Managers should be prepared to offer assistance to LMSB taxpayers impacted by the disaster, such as:

The State Disaster Assistance Coordinator (SDAC) may direct staff from LMSB to provide assistance at FEMA Disaster Recovery Centers.

When a disaster or other emergency occurs, limited excused absences may be administratively granted to allow employees to tend to personal matters such as clean up, securing emergency funds and other related activities. The specific amount of time allotted by the Executive Order generally varies from disaster to disaster. The determination to approve an excused absence must be made on a case-by-case basis. Refer to IRM 6.600, Absence and Leave and, Article 36 of the National Agreement, for guidance on the use of excused absence.

The Office of the Chief, Human Capital Office, is responsible for communicating leave policy when a disaster occurs. Excused absences are not authorized to assist relatives or fellow employees. However, if appropriate, management may approve the use of annual leave or leave without pay for these situations.

When a disaster occurs, FEMA can request that the IRS provide IRS employees to assist FEMA in accordance with the Robert T. Stafford Disaster Relief and Emergency Assistance Act. If this happens, the following leave and pay rules apply:

Travel information for per diem, allowable expenses and commuting areas can be found in Document 9648, Travel Reimbursement and Accounting System (TRAS) - Traveler's Handbook (TRAS User Guide). IRM 1763, Travel Handbook, has been declared obsolete. This IRM was restructured and released under IRM 1.32, Servicewide Policies and Procedures. Interim instructions are found on the Chief Financial Officer Web site at http://cfo.fin.irs.gov/IntFinMgmt/PolicyProcedures/Docs/IRMs/Travel_Handbook.doc

Overtime Information can be found in the Time and Leave Handbook, Document 11103, and in IRM 6.500.1.12.3, Overtime Pay Provisions.

Compensatory Time information can be found in the Time and Leave Handbook, Document 11103.

Credit hours are earned and used in fifteen (15) minute increments. Credit hour carryover balances may not exceed 24 hours at the end of a pay period for full time employees. Part-time employees may carry forward a maximum of one-fourth (1/4) of the hours in the employee’s biweekly workweek.

Additional information concerning credit hours is provided in the Time and Leave Handbook, Document 11103, and in IRM 6.600, Absence and Leave.

Within the IRS, the aggregate compensation limitations are administered in accordance with the provisions at 5 CFR 530.203. No employee of the IRS may receive any allowance, differential, bonus, award, or other similar cash payment under 5 U.S.C., in any calendar year to the extent such pay, in combination with basic pay, would cause the aggregate compensation of the employee to exceed the rate for Level I of the Executive Schedule at the end of the calendar year. Premium pay information is in the Time and Leave Handbook, Document 11103, and in IRM 6.500.1.1.2, Pay and Allowances - Pay Administration.

Information concerning time and attendance reporting is available in the Pay, Leave and Benefits category of the Employee Resource Center Web Site at http://erc.web.irs.gov.

Information on time and attendance processing and transmission is in the SETR User Guide that is available at the following site: http://erc.web.irs.gov/Docs/2002/AWSS/PS/Setr/Guide3081.pdf .

AWSS issues special time reporting directions as required based on the severity of each disaster situation. This guidance is in the form of SETR Alerts and is posted on the SETR Web Site at http://websetr.enterprise.irs.gov/mainlogin.asp . Users must log into the SETR application to access this information.

Some employees may express the need for professional counseling to help them deal with disaster-related problems. The methods for obtaining Employee Assistance Program (EAP) services should be made readily available. Stationing a counselor near the relief center to provide crisis counseling on an informal basis may be helpful for individuals who are reluctant to request formal counseling resources. Traumatic Incident Specialists may also be available for an on-site assistance visit, if necessary.

Employees in need of counseling should call 1-800-977-7631 or 1-800-697-0353 (TDD). The EAP service is available 24 hours each day. More information about the Employee Assistance Program can be found in Document 9931, IRS Employee Assistance Program, Counseling, Work Life and Dependent Care Service.

Special agents must respect the feelings of victims of a disaster or those individuals enduring hardships or disruptions in the impacted disaster area. The Special Agent in Charge (SAC) may consult with the State Disaster Assistance Coordinator (SDAC) to consider the appropriateness of limiting enforcement activities until the conditions of the disaster have been alleviated. The SAC may issue guidelines covering general types of proscribed activities, or may choose to require pre-approval at the Supervisory Special Agent level for various activities on a case-by-case basis.

In grand jury investigations and investigations pending legal action, any decisions to limit or suspend activities must be closely coordinated with the U.S. Attorney's Office.

Some financial crimes and tax evasion schemes, such as profiteering and price gouging, proliferate during and after disasters. Criminal Investigation may wish to focus attention on these areas as a potential source of investigations.

The SAC may wish to consider making special agents available to assist local law enforcement authorities in a disaster. General Legal Services shall be consulted to determine the legal authority and potential liability issues involved before any such assistance is provided.