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Part 5. Collecting Process

Chapter 1. General Collecting Procedures

Section 10. Taxpayer Contacts

5.1.10  Taxpayer Contacts

5.1.10.1  (01-15-2008)
Pre-Contact

  1. Upon receipt of a new case, conduct an initial analysis of the case by,

    • reviewing IDRS, as appropriate

    • reviewing previous case history including Desktop Integration account information, and ensuring that actions already taken on cases worked in the Automated Collection System (ACS) call sites are not unnecessarily duplicated

    • creating Integrated Collection System (ICS) modules for periods in notice status

    • determining if the taxpayer has a representative (see IRM 5.1.10.5.2, Right to Representation)

    • determining if a TC 914, Active Criminal Investigation (CI) is present on any module. Note that in some cases CI may request that no contact be made with the taxpayer or the taxpayer's representative. (See IRM 5.1.5.1, Parallel Investigations, for procedures on required coordination with CI)

    • determining if the case requires special handling (see IRM 5.1.12)

    • deciding what issues to address during initial contact with the taxpayer

    • scheduling field contact within contact time frames outlined in IRM 5.1.10.3.1

    • determining whether the taxpayer is included in the Federal Payment Levy Program (FPLP) by the presence of FPLP in red on the ICS case summary and module summary screens. (See IRM 5.11.7.2.)

  2. Be alert for the potentially dangerous taxpayer code (see IRM 5.1.3.1.)

  3. Attempt to verify that the taxpayer has been advised of potential third party contacts. Effective May 16, 2005, advance notification of potential third party contact is incorporated into Publication 1, Your Rights as a Taxpayer. CP Notice 504 (for balance due modules) and CP Notice 518 (for delinquent return modules) include Notice 1219 A or B, Notice of Potential Third Party Contact. Mail or hand deliver the appropriate Letter 3164 if you cannot verify that the taxpayer has received Publication 1 (rev. 5/2005) or Notice 1219 A or B. Letter 3164 does not need to be provided to a taxpayer for third party contacts of which advance notice has otherwise been provided.

    Note:

    See IRM 5.1.17, Third Party Contacts, for IRC 7602(c) procedures to follow when contacting anyone other than the taxpayer regarding the determination or collection of the taxpayer's tax liability.

  4. For a limited liability company (LLC) with employment tax liabilities that accrue prior to January 1, 2009, attempt to determine whether the LLC or its owner is the liable taxpayer.

  5. The unique factors of each case need to be considered when deciding on the amount of research needed prior to initial contact and the depth of the financial investigation required for locating and verifying asset information. Refer to IRM 5.1.30, Strategic Approach to Case Work, and IRM 5.1.31, Workload Management,for strategies to guide you in effectively planning and carrying out your case actions. Refer to IRM 5.1.11, Delinquent Return Accounts, for detailed pre-contact and contact guidelines for delinquent return investigations.

5.1.10.2  (01-15-2008)
Fair Tax Collection Practices

  1. IRC 6304 imposes certain restrictions with respect to IRS communications with taxpayers regarding unpaid tax. This provision specifically prohibits the IRS from harassing or abusing taxpayers.

  2. This law applies to communications with all taxpayers, including business entities.

  3. Violations of IRC 6304 could subject the United States to civil action (IRC 7433) by the taxpayer. Violations of IRC 6304 could also subject Service employees to termination for misconduct.

5.1.10.2.1  (08-21-2006)
Contacting Taxpayers

  1. Some contacts cannot be made without the prior consent of the taxpayer. These include:

    1. Contacting the taxpayer at any unusual time or place, or at a time or place an employee knows, or should know, is inconvenient to the taxpayer

    2. Contacting the taxpayer at work if there is reason to believe the employer does not allow such contact

    3. Directly contacting a taxpayer if the Service knows the taxpayer has an authorized representative and knows or can readily ascertain the representative's name and address.

    Exception:

    • The representative consents to the employee directly contacting the taxpayer
    • The contact is authorized by a court
    • The representative does not respond in a reasonable time (see Bypassing Taxpayer's Representative, IRM 5.1.1.7.7).

  2. Employees can generally assume that it is convenient to contact the taxpayer after 8:00 a.m. and before 9:00 p.m. local time at the taxpayer's location, unless there is reason to know otherwise.

  3. Take any necessary precautions to protect your safety and security when in the field. (See IRM 5.1.3, Safety, Employee and Security Programs.)

5.1.10.2.2  (01-15-2008)
Promoting Public Confidence

  1. It is IRS policy not to use methods which are threatening or harassing to the public. See Policy Statement P–1–1. IRC 6304 prohibits employees from harassing, oppressing, or abusing any person in connection with the collection of any unpaid tax.

  2. The following actions are considered violations:

    1. The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person

    2. The use of obscene, profane, or abusive language

    3. Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass any person at the called number, or

    4. Placing telephone calls without meaningful disclosure to the taxpayer of the caller's identity.

  3. If a telephone call is placed to a third party only to acquire location information (taxpayer's place of abode and phone number at such place, or place of employment) in connection with the collection of unpaid tax, employees should identify themselves by name only. Employees should not identify themselves by title or as a Service employee unless the third party expressly requests that information.

  4. At times, third party contact by telephone may result in obtaining information with respect to the determination or collection of the taxpayer's liability, i.e., a levy source. In such instances, employees should identify themselves as Service employees and follow third party contact procedures, including the reprisal determination.

  5. When an employee attempts to contact a taxpayer by telephone and someone other than the taxpayer answers the phone, the employee should not identify himself or herself as a Service employee or state the reason for the attempted contact. However, if the employee seeks information about the taxpayer from the person who answered the phone that may help in determining or collecting the liability, follow third party contact procedures and make a reprisal determination. Follow the guidelines in IRM 11.3.2.6.1 for leaving messages involving confidential information on answering machines/voice mail when trying to contact taxpayers or their representatives.

    Note:

    If it cannot be verified that the taxpayer has been provided with advance notice that third party contacts may be made, then the employee should not seek information about the taxpayer from the third party and should not identify himself or herself as an IRS employee unless expressly asked.

  6. The use of cellular and cordless devices carries certain inherent security vulnerabilities. Precautions must be taken when discussing sensitive taxpayer information using these devices. Refer to IRM 11.3.2.6.2 for guidelines on the use of cellular phones and cordless devices for communications of sensitive but unclassified information. Classified information should never be discussed using a cellular or cordless phone.

  7. When a taxpayer states he or she has been the victim of identity theft, follow the guidelines in IRM 5.1.12.2 for standard documentation requirements and detailed procedures for resolving the case.

5.1.10.3  (01-15-2008)
Initial Contact

  1. Revenue officers should make prompt contact on all taxpayer cases. In most cases, the initial contact with all taxpayers will be the result of a field call. If the initial contact with a taxpayer is not a field call, the reason why must be documented in the case history. If the taxpayer has a representative with a valid power of attorney, then contact will be made with the representative. For BMF taxpayers, arrange to meet the taxpayer and the representative at the taxpayer's place of business. When contacting the POA, follow guidelines for effective initial contact. If initial contact is not at the taxpayer's place of business, a field visit to the taxpayer's place of business must still take place, when practical. Visiting the taxpayer's business, assessing the operation, and viewing the assets will help you make an informed collectibility determination. For IMF taxpayers with a representative, the initial contact does not have to be at the individual's residence; however, a field call to view the property or other assets may be necessary at a later date.

    Reminder:

    During initial contact with a taxpayer, provide your title, last name, and employee identification number. Do not refer to your employee identification number as a badge number.

  2. Use of an appointment letter to initiate contact with a taxpayer will occur only when extenuating circumstances exist such as when your assigned inventory covers a large geographical area. For BMF taxpayers, you must still visit the taxpayer's place of business to view the business and its assets, when practical.

    Note:

    Revenue officers assigned taxpayer cases located in a foreign country should make the initial contact via registered mail whenever U.S. Postal regulations permit such use, because time zones, travel concerns, and country restrictions may limit the ability to make telephone or field contact with the taxpayer.

  3. Form 2246, Field Contact Card, is used to advise taxpayers or third parties how to contact the assigned revenue officer regarding an official IRS matter. It can be left at the business establishment or residence of taxpayers or other persons who are not in when called upon. To avoid unauthorized disclosure, tax information of a confidential nature must not be written on Form 2246. As a general rule, the time frame for taxpayers to respond should be two business days. Revenue officers may use other reasonable time frames as warranted by the circumstances of the case. The time frame selected by the revenue officer will serve to establish deadlines for follow-up should the taxpayer fail to respond.

  4. When initial contact is attempted and the taxpayer is unable or unwilling to provide all the necessary information, attempt to secure as much preliminary information as possible, e.g. verify receipt of Publication 1, amount/returns due, asset and income information, source of levy, etc. The case history will be documented accordingly. If the taxpayer is unable to provide the information, an appointment will be scheduled to meet in person and complete the interview. If the taxpayer is unwilling, the revenue officer will proceed with appropriate enforcement action. Warn the taxpayer of enforcement action that may take place for failure to comply with the request.

5.1.10.3.1  (01-15-2008)
Initial Contact Time Frames

  1. Make initial taxpayer contact within the following time frames. The date of case receipt is the "Employee Assign Date" on ICS.

    1. Contact BMF/IMF/NMF Large DolIar/X Coded Bal Due/Del Ret and Federal Agency Bal Due/Del Ret within 30 calendar days from date of receipt.

      Note:

      Contact taxpayers identified as repeaters and taxpayers that are pyramiding trust fund taxes within 30 calendar days from receipt of the case. See IRM 5.7.8.2, Identifying Repeater Trust Fund Taxpayers and IRM 5.7.8.3, Pyramiding Trust Fund Taxpayers.

    2. Contact BMF/IMF/NMF/Bal Due/Del Ret and all others within 45 calendar days from date of receipt.

    3. Contact FTD Alerts within 15 calendar days from date of receipt.

    4. Contact CIP Leads within 60 calendar days from date of receipt.

  2. These suggested time frames were established as guidance for revenue officers throughout the Service. Revenue officers must document the case history with the reason for any delay.

    Note:

    The initial contact time frames in (1) above are the maximum time frames for field contact. Wherever possible, revenue officers should strive to make field calls as soon as possible after case receipt, ideally within the first week of assignment.

  3. Refer to Targeted Inventory Levels, IRM 5.1.1.13.5, for instances in which time frames for timely initial and follow-up contacts may be waived.

  4. A field call to the taxpayer's address within the above time frames that does not result in taxpayer contact will meet the requirement for timely contact. Choose one of the following from the ICS Taxpayer Contact pick list to document the contact:

    • Attempted Contact (Contact Type F, if field contact was attempted), or

    • TP or POA Contact, if actual contact was made.

  5. A phone call or appointment letter within the above time frames that does not result in timely taxpayer contact will not meet the requirement for timely contact. Leaving a message is not considered contact with the taxpayer.

    Note:

    When working an Offer in Compromise, see IRM 5.8.4.7, Initial Action, Follow-up, and Closing Action Time Frames.

5.1.10.3.2  (01-15-2008)
Effective Initial Contact

  1. An effective initial contact is the cornerstone to timely and effective case resolution. As part of the initial contact

    • Determine whether the taxpayer received Publication 1, Your Rights as a Taxpayer

    • Explain the collection process to the taxpayer and the taxpayer's rights under that process

    If Then
    The taxpayer did not receive Publication 1 The revenue officer will provide the taxpayer with a copy and allow the taxpayer time to review it
    The taxpayer has any questions about the provisions covered in Publication 1 The revenue officer will take the time to answer the questions
    During the initial contact, or during subsequent contacts, the taxpayer requests to have the case reviewed by a supervisor The contact employee should give the taxpayer the name, telephone number and address of his/her supervisor

    The revenue officer must document the case history to reflect that on the initial contact the taxpayer was asked:

    • If the taxpayer received Publication 1, and

    • If he or she had any questions

    The appropriate items on the ICS History pick list will satisfy the documentation requirements for Publication 1. This documentation is necessary only once in a continuing case investigation.

    Note:

    Investigation of an Offer in Compromise is not considered a continuation of the Bal Due investigation.

  2. During initial contact with a taxpayer,

    1. Request immediate full/part payment of all delinquent accounts (including accounts in notice status) and explain the various forms of payment such as check, money order, electronic payment, credit card, and Electronic Federal Tax Payment System (EFTPS) for future Federal Tax Deposits.

    2. Request immediate filing of all delinquent returns.

    3. Secure verification of filing and payment when the taxpayer indicates that the tax was paid, the returns were filed, or both. If the liability is incorrect, allow the taxpayer the opportunity to file an amended or corrected return, or determine whether an adjustment or payment tracer is necessary.

    4. Determine and document the taxpayer's compliance with current filing, payment, and deposit requirements, including type of depositor. Document compliance on the ICS Full Compliance Check screen.

    5. Determine the reason for the delinquency and advise the taxpayer how to avoid future delinquencies.

    6. Request the taxpayer file current returns and make estimated tax payments through you and provide you with copies of Federal Tax Deposit receipts or with EFTPS acknowledgment numbers. Advise the taxpayer that doing so will allow you to monitor their compliance with current filing, paying, and deposit requirements until the case is resolved.

      Note:

      Consider securing payroll summary sheets from the taxpayer to verify the correct amount is being deposited.

    7. Determine whether the taxpayer is a federal contractor. If the taxpayer is a federal contractor, obtain the name of the federal contracting agency and the contract number.

    Exception:

    When fraud indicators are evidenced see IRM 5.1.11.6.2, Referrals to Criminal Investigation .

  3. If the taxpayer is unable to comply with the above, proceed as follows:

    If Then
    Tax is due Request the maximum amount payable that day to avoid additional penalty and interest.
    Returns are due or the taxpayer is unable to provide proof of filing Attempt to secure sufficient information so that an accurate return can be prepared if the taxpayer fails to file by the specified date. Such information might include:
     • income amounts
     • income sources
     • filing status
     • gross wages paid
     • withholding amounts
     • bank accounts
    The information will allow the revenue officer to proceed with the next collection action, e.g., IRC §6020(b), substitute for return (SFR), or summons.
    Tax is due and the taxpayer is unable to pay in full or provide proof of full payment If the taxpayer does not qualify for a guaranteed, streamlined, or in-business trust fund express installment agreement (see IRM 5.14, Installment Agreements), attempt to secure a complete Collection Information Statement and discuss other collection alternatives. At a minimum, secure basic asset information, e.g., bank accounts, primary accounts receivable, employer and wage information, real and personal property owned. Make a lien determination within 10 days of attempted contact. See IRM 5.12, Federal Tax Liens.
    Other action is required (i.e., payment tracer, adjustment) Secure sufficient information to take the necessary action.
    The case is not resolved during the initial contact Discuss a realistic plan for case resolution with the taxpayer, establish and document a plan of action for resolving the case to be updated as warranted, and keep the taxpayer informed of the status and resolution of their case.

  4. When the taxpayer is required to take action such as file returns, provide information, pay the balance, etc., explain and document the following:

    1. What is expected and the deadline for receipt. Form 9297, Summary of Taxpayer Contact, will be used in face-to-face meetings to list the information/documents required and the deadline date for receipt. The taxpayer will receive the original and the revenue officer will retain a copy in the case file. The case history will be documented with a brief summary statement referencing the Form 9297. There may be some instances when the Form 9297 will not be used, (for example: in potential fraud cases.) If the Form 9297 is not used, the revenue officer will provide a brief explanation in the history. The Form 9297 will be used for any subsequent deadlines set in face-to-face meetings. (Form 9297 is not mandatory during telephone contacts.)

    2. Specific type of enforcement action that may take place for failure to comply (not necessarily the particular asset, bank account, etc.) Form 9297 is not adequate for use as a warning of enforcement action.

    3. Various forms of payment such as check, money order, electronic payment, credit card, EFTPS for future Federal Tax Deposits, etc.

    Note:

    Do not use "Warned of Enforcement Action" or "WOEA" or any similar abbreviation when documenting the case history unless you include the specific type of enforcement action(s) you advised the taxpayer or representative you would take if the taxpayer did not comply.

  5. Issue Letter 1058, Notice of Intent to Levy and Notice of Your Right to a Hearing, and all required enclosures when a deadline is set for the taxpayer to take a specific action and when all conditions in IRM 5.11.1 are met. Use discretion when issuing the L-1058 on initial contact with an IMF-only balance due taxpayer. See IRM sections 5.11.1.2.2 and 5.11.1.2.2.2 for exceptions and additional guidance on issuance of L-1058.

  6. Take the following additional actions when contacting a corporation:

    1. Determine individuals responsible for depositing and paying over trust fund taxes.

    2. Explain the Trust Fund Recovery Penalty (TFRP) provisions to the responsible or potentially responsible person(s). For repeater and pyramiding trust fund taxpayers, use the Automated Trust Fund Recovery system to make a rough calculation of the penalty and be prepared to discuss the potential amount of the penalty.

    3. Begin the TFRP investigation if full payment is not secured. Attempt to conduct interviews with all potentially responsible persons using Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Tax. See IRM 5.7.4, Investigation and Recommendation of the Trust Fund Recovery Penalty.

      Note:

      The decision to conduct an IMF compliance check when investigating a corporate liability should be made on a case by case basis. Revenue officers should not routinely conduct cross compliance checks of employees who may be handling the tax matters of a corporation solely on the basis of the individual's employment with the business.

  7. Take the following additional actions when contacting a sole proprietor or partnership:

    1. Verify compliance with IMF filing and paying requirements.

    2. Explain that sole proprietors and general partners are personally liable for employment and excise taxes incurred in the operations of the business.

    3. Attempt to secure the personal asset information of the proprietor or partner(s).

    4. In the event TFRP provisions are applicable, follow procedures for corporations above.

  8. Take the following additional actions when contacting a limited liability company (LLC):

    1. Verify the owner(s) of the LLC during the period(s) of delinquency.

    2. Determine the classification of the LLC to identify the taxpayer.

    3. When the single member/owner of the LLC is identified as the liable taxpayer

      • Explain that the owner is directly liable for those taxes incurred in the operation of the LLC.

      • Verify compliance with the owner's filing and paying requirements.

      • Attempt to secure asset information of the owner.

      • In the event TFRP provisions are applicable for a non-owner, follow procedures for corporations above.

    4. When the LLC is identified as the liable taxpayer, follow procedures for corporations above.

5.1.10.4  (01-15-2008)
Contact Letters

  1. The pre-printed letters available to correspond with taxpayers include:

    • Letter 725(DO) to set up an appointment with a taxpayer

    • Letter 729(DO) to address unfiled returns

    • Letter 728 to provide the current balance due

    • Letter 3220(DO) to provide the balance due after receipt of payment

    • Letter 3221(DO) to respond to an inquiry regarding the balance due

    • Letter 3586 (CG) to schedule an appointment to conduct a Trust Fund Recovery Penalty interview

  2. Any letter required by statute (Letters 1058, 2975, 3164, 3172, 2439(P), etc.) relating to a joint return under IRC § 6013 must be sent separately to each individual who filed the joint return.

  3. This requirement also extends to letters not required by statute that contain the elements of a notice and demand (amount of tax due stated and payment of tax due demanded) such as Letters 728, 3220, and 3221.

  4. When the owner of a limited liability company (LLC) is the liable taxpayer, Letters 1058, 2975, 3172, and 2439(P) must be issued to the owner, not to the LLC. Notice to the owner is required even when the Letter 1058 or 3172 notice was previously issued in the name of the disregarded LLC.

    Reminder:

    All correspondence to taxpayers must include your title, last name, employee identification number, and telephone number.

    Reminder:

    An appointment letter to initiate contact with a taxpayer will be used only under extenuating circumstances.

5.1.10.5  (08-21-2006)
Taxpayer Rights

  1. Awareness of taxpayer rights is vitally important to the revenue officer job. Taxpayer rights, in addition to the ones listed below and in Publication 1, are addressed throughout IRM Part 5 and in IRM 5.1.9, Collection Appeal Rights.

5.1.10.5.1  (01-15-2008)
Rights During Interviews

  1. Generally, if a taxpayer states during any interview that he or she wishes to consult with an authorized representative, the employee will suspend the interview to permit such consultation.

    If Then
    The interview is being conducted because of a summons The interview should not be suspended.
    The interview is suspended Allow up to 10 business days for the consultation. This includes when a seizure is taking place unless the delay could result in the disappearance or dissipation of the asset or if the seizure is being made pursuant to a writ or judicial approval.

  2. The taxpayer has the right to make an audio recording of an in-person interview, when the interview relates to the determination or collection of tax (for additional guidance see Taxpayer Request to Make An Audio Recording, IRM 5.1.1.8).

5.1.10.5.2  (08-21-2006)
Right to Representation

  1. Taxpayers have the right to be represented in their tax matters by:

    • An attorney

    • A certified public accountant

    • An individual enrolled to practice before the Service

    • An officer or full time employee of the taxpayer organization (e.g. , corporation)

    • A fiduciary for the taxpayer

    • A member of the taxpayer's immediate family

  2. If the taxpayer has a representative, secure a written power of attorney (Form 2848, Power of Attorney and Declaration of Representative, may be used.) A taxpayer may authorize the Service to provide confidential tax return information to a third party designated on Form 8821, Tax Information Authorization, but this form does not authorize the third party to represent the taxpayer. For detailed information on taxpayer representation and disclosure to a designee, see IRM 5.1.1.7, Processing Third Party Authorizations, and IRM 11.3.3, Disclosure to Designees and Practitioners.

  3. If all open periods are not reflected on Form 2848 or Form 8821, contact the taxpayer to secure an up-to-date form.

    Note:

    Unenrolled return preparers are not permitted to act as a taxpayer representative before Collection.

5.1.10.5.3  (08-21-2006)
Other Taxpayer Rights

  1. Taxpayers generally have the right to designate the application of voluntary payments to their accounts.

  2. Upon request, taxpayers are entitled to receipts for any payments made on their accounts, whether in current or delinquent status.

    Note:

    If a cash payment is received, issue Form 809, Receipt for Payment of Taxes (see IRM 5.1.2.2). Usually, the taxpayer’s canceled check, copy of bank check, or money order, is the taxpayer's receipt for non-cash payments. However, a receipt will be issued if requested by the taxpayer.

  3. Taxpayers have the right to submit an offer to compromise a tax liability, and have the offer considered on its merits. See IRM 5.8, Offer in Compromise.

  4. A taxpayer may have a right to an installment agreement. See IRM 5.14, Installment Agreements.

  5. Taxpayers may request that their case be transferred to another IRS office. Generally, such requests will be honored if the taxpayer has a valid reason.

5.1.10.5.4  (01-15-2008)
Privacy Act of 1974

  1. The Privacy Act of 1974 (5 U.S.C. § 552a) creates a series of requirements governing the record-keeping practices of federal agencies, as they relate to the collection, maintenance, and disclosure of information pertaining to individuals. The statute also provides individuals with certain rights of access to agency records pertaining to them. For a more detailed discussion of IRS implementation of the Privacy Act, and Service employee responsibilities under the statute, see IRM 11.3.14, Privacy Act General Provisions , and IRM 11.3.19, Privacy Act Accounting for Disclosures .

  2. Taxpayers seeking access to records pertaining to an open case should, to the extent possible, be given access to their records as part of the normal administrative process without having to resort to a formal Privacy Act or Freedom of Information Act request. However, where a taxpayer insists upon the more formalized procedures of the Privacy Act or the Freedom of Information Act (5 U.S.C. § 552), the taxpayer should be directed to the disclosure office having responsibility for the records. Any written request received by Collection personnel which cites the Privacy Act or Freedom of Information Act should be forwarded to the appropriate disclosure office for handling in accordance with the provisions of IRM 11.3, Disclosure of Official Information.

  3. Although taxpayers have certain rights of access to agency records under the Privacy Act, as well as the Freedom of Information Act, returns and return information are confidential in accordance with IRC § 6103(a). Returns and return information shall be disclosed only as authorized by IRC § 6103 and the underlying Treasury Regulations.

  4. Collection employees are authorized by IRC § 6103(k)(6) and Treasury Regulation 301.6103(k)(6)-1 to disclose return information to the extent necessary to obtain information which may be related to a Collection investigation and which is not otherwise reasonably available. No special permission or authorization is needed to make investigative disclosures under the circumstances and conditions described in Treasury Regulation 301.6103(k)(6)-1, so long as the Collection employee is performing official duties for collection activity. It is important to note that IRC § 6103(k)(6) and Treasury Regulation 301.6103(k)(6)-1 permit the disclosure of return information in the investigatory process, but do not authorize the disclosure of the taxpayer's return. See IRM 11.3.21 for more detail on investigative disclosures.

    Note:

    Authorization to disclose the taxpayer's return information under IRC 6103 should not be confused with authorization to contact third parties under IRC 7602(c). If the IRS contacts a third party to obtain information about the taxpayer, then the advance notice and record keeping requirements of IRC 7602(c) must be met unless the taxpayer authorizes the contact.

5.1.10.6  (01-15-2008)
Case Histories

  1. Collection will use the Integrated Collection System (ICS) history functionality to record actions and decisions taken on cases. It is extremely important that case histories are documented clearly, accurately, completely, and in a timely manner. Entries should be made in chronological order and recorded the day the action occurs or as soon as practical thereafter.

  2. Certain actions taken by ICS users generate systemic history entries. Management may determine the type and degree of additional documentation required. However, such items as action expected of taxpayers, target dates established, taxpayer compliance, plan of action, enforcement actions, financial analysis, etc., should be included as part of the case history. ICS pick lists are available to record many of these actions. ICS pick lists must be used when documenting the following actions: taxpayer contact, taxpayer or asset location activity, FTD verification, and closing narrative (for BMF accounts.)

    Note:

    Numerous other sections of IRM Part 5 require that other specific actions be documented in the case history.

  3. A history entry should be made to reference an action even though a form or document relative to the action is in the case file.

  4. When related IMF and BMF accounts are present, the cases should be cross–referenced; separate histories are maintained by ICS.

  5. When a Non-Master File account is present with a related Master File account sharing a TIN, ICS maintains separate histories and permits narrative history to be written to both history files with one posting.

  6. When Forms 2747 exist for the older part of the case history, they should remain associated with the case file when the case is closed.

  7. ICS users accessing a non-assigned case are encouraged to write a brief narrative history explaining the access.

  8. All requests for deletion of ICS history must be in writing. The request should state exactly which history entry is to be deleted and explain why the request is being made, e.g., history documented in the wrong case. The concurrence of the Territory Manager must be noted on the request prior to the deletion. The ICS/Entity Quality Analyst or the Territory Manager performing the deletion should maintain the request with a print of the history before and after the deletion until the case records are deleted from the ICS archives.

  9. Taxpayer records of any kind, including copies of checks, cannot be maintained by Collection personnel after disposition of the account. All records must be disposed of in accordance with approved records control schedules.

5.1.10.7  (08-21-2006)
Timely Follow-ups

  1. The deadline given to a taxpayer or representative to comply with a request for information or action should be reasonable in respect to the information or action requested. When setting a deadline, ensure that sufficient time is calendared to carry out follow-up actions if the deadline is not met.

  2. When a taxpayer or representative misses a specific deadline, follow-up action should be initiated within ten (10) calendar days unless unique circumstances warrant a delay.

  3. A reasonable request by a taxpayer or representative for an extension of a deadline may be granted at the revenue officer's discretion. Form 9297 will be issued when a new deadline is set in face-to-face meetings with the taxpayer or representative.

  4. Follow-up action should move the case toward resolution. Follow-up actions include, but are not limited to,

    • Filing Notice of Federal Tax Lien (IRM 5.12)

    • Issuing Notice of Levy (IRM 5.11)

    • Issuing a summons (IRM 25.5)

    • Conducting the TFRP investigation (IRM 5.7)

    Note:

    A phone call or letter to a taxpayer or representative to inquire about a missed deadline is not considered an appropriate follow-up action.

  5. Take follow-up actions simultaneously, as appropriate.

5.1.10.8  (08-21-2006)
Collection Case File Check Sheet

  1. Revenue Officers must ensure the quality and completeness of all closed and transferred files. A Collection Case File Check Sheet, Form 13353, is available as a reference tool for revenue officers. The form lists critical items that must be included in the closed or transferred case file before it is shipped for processing and/or records retention.

  2. Revenue officers are responsible for verifying that forms reflecting action taken to close the case (Form 433-D, Form 53, etc.,) are included in the closed or transferred file along with supporting documentation such as Form 433-A/B, Collection Information Statement, Form 2848, Power of Attorney and Declaration of Representative, and so on.

  3. Form 13353 may be used to identify the type of case and documents attached. If Form 13353 is not used, the revenue officer will include the ICS Case Summary Screen or a similar document to identify the case closure, indicating in writing the type of disposition (IA, CNC, ADJ, etc.). If a case file folder is used, it is suggested that the identifying document be attached to the left side of the case file folder, and that all other closing, processing, and supporting documents be attached to the inside right side of the file folder. All related documents should be grouped together (i.e., documents supporting the Collection Information Statement with the 433-A, etc.).

  4. Remove extraneous material that is not needed to support the case closure or that does not reflect actions taken in the course of the case. (Examples are maps, blank pages, duplicate documents, etc.).

  5. Refer to the ICS User's Guide for detailed instructions on processing and routing closed cases to the Centralized Case Processing (CCP) Unit. Specific guidance associated with each type of case closure can also be found throughout Part V of the IRM.

5.1.10.9  (08-21-2006)
Timely Case Closing Actions

  1. At the point in a case when all necessary action has been taken, all required documentation has been secured, and case disposition action can be taken, close the case promptly, normally within 15 days. Groups should ship cases to CCP as soon as they are closed so that review samples can be readily available for selection.


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