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Part 5. Collecting Process

Chapter 1. General Collecting Procedures

Section 18. Locating Taxpayers and their Assets

5.1.18  Locating Taxpayers and their Assets

5.1.18.1  (05-20-2008)
Locating Taxpayers and their Assets

  1. This IRM describes the various sources available to Collection Field function (CFf) employees to facilitate locating taxpayers and their assets and also provides procedures to help protect taxpayer privacy when using these sources.

  2. Follow taxpayer privacy procedures when you use these sources.

  3. Use these sources to locate taxpayers and their assets.

    Note:

    In general, this IRM does not provide specific case dollar criteria for using the locator sources discussed below. This is because you should apply a strategic approach to your casework and consider the different aspects of each case such as the size of the liability, complexity of the case, compliance history, and the cooperation level of the taxpayer to determine the applicable extent of your locator research.

    Note:

    Some of the locator sources discussed below do include a reference to the Law Enforcement Manual (LEM).

  4. See IRM 5.1.18.5.1, Use of Asset Locator Research Results.

  5. Follow the procedures in IRM 5.1.17, Third-Party Contacts , as it pertains to respecting taxpayer rights in accordance with IRC 7602(c), Notice of contact of third parties.

    1. Verify that advance notification of potential third party contact has been provided to the taxpayer and/or his/her Power of Attorney (POA) before you begin to locate taxpayers and their assets.

      Note:

      If you cannot verify advance notification of potential third party contact, then provide notification to the taxpayer.

    2. Refer to paragraph (3) in IRM 5.1.17.2, Third-Party Contacts , for a list of contacts not considered a third-party contact.

5.1.18.2  (05-20-2008)
Locator Services Program

  1. The goal of the Locator Services Program is to expand and automate effective locator services. Locator services are those automated or manual services that assist employees in locating taxpayers and their assets.

  2. Headquarters is responsible for providing leadership, support, assistance, technical expertise, funding, and oversight for all locator service activity nationwide. Headquarters is also responsible for allocation of resources to the area offices for maintaining current local locator services.

  3. Elevate any concerns about the administration of the Locator Services Program to Headquarters via your local management.

5.1.18.3  (05-20-2008)
Locator Services Security Policies

  1. The use of IRS locator services is forOfficial Use Only . Security guidelines provide for the maintenance, protection, and confidentiality of information. Security guidelines are set forth in IRM 1.2.1, Policies of the Internal Revenue Service.

  2. Be aware when you access taxpayer data including locator services information and always be cognizant of the existing security and legal regulations regarding access to taxpayer data/information.

5.1.18.3.1  (05-20-2008)
Disclosure of Locator Services Information

  1. All information collected by the IRS with regard to collecting tax liability is protected by IRM 6103; any disclosure must meet IRC 6103 standards.

  2. Ensure any disclosure you make of taxpayer return information conforms to IRC 6103(k)(6) (e.g., name, address, and Taxpayer Identification Number to a credit reporting agency to obtain a full credit report).

  3. Analyze each such disclosure on a case-by-case basis to ensure the disclosure is necessary to obtain the information contained in the desired report (e.g., a report from the national asset locator tool or a credit report), as follows:

    1. Is the specific return information disclosed limited to the minimum information necessary to obtain the report?

    2. Is the return information from our BAL Due or lien files?

    3. Is the information in the desired report not otherwise reasonably available from other sources?

5.1.18.4  (05-20-2008)
Internet

  1. The Internet is a powerful tool for gathering information about individuals and businesses. The information on the Internet can assist IRS employees in locating taxpayers and their assets. A great amount of information is available free of charge although many web sites charge a usage fee or provide information on a subscription basis.

  2. The Service has current corporate contracts for locator services, credit bureau services, and tax law research services. These services are managed by Servicewide Policy, Directives, and Electronic Research (SPDER).

  3. SPDER provides IRS employees with Internet / Intranet access on an as-needed basis.

  4. Internet / Intranet access provides IRS employees with access to a number of computer applications including:

    • the national asset locator tool — Accurint (at the time of publication of this IRM),

    • the credit bureau web browser — Smart.Alx (at the time of publication of this IRM), and

    • the tax research portal — LexisNexis® (at the time of publication of this IRM).

  5. Effective use of the Internet can include the use of various web sites to locate taxpayers and their assets. Refer to the E-Business web site as instructed in IRM 5.1.18.4.1.1.1, Collection Web Site, for information on helpful internet sites and tips on using the Internet effectively.

  6. Access the IRS Intranet Home Page at this link: http://irweb.irs.gov/

  7. Access the SPDER web site at this link: http://spder.web.irs.gov

  8. Refer to IRM 1.4.5, Resource Guide For Managers - Corporate Tax Administration Tools, for helpful information regarding the background on the corporate delivery of electronic research services, an overview of each corporate tax administration tool, how to access them, and the related training products.

5.1.18.4.1  (05-20-2008)
Using the Internet / Intranet

  1. Use the Internet / Intranet to help you do the following:

    1. locate taxpayers or their assets,

    2. understand various types of businesses;

    3. understand various types of property ownership, and/or

    4. confirm/validate the information taxpayers have provided to you.

  2. Enhance your case processing skills by performing effective Internet research in an interactive mode to receive current and historical data about your taxpayer.

5.1.18.4.1.1  (05-20-2008)
IRWeb

  1. The Web address of the IRWeb is: http://irweb.irs.gov.

    Note:

    The IRWeb is the IRS employee Intranet portal and should be the default home page on every employee's Web browser.

  2. The IRWeb provides:

    • a search engine (IRWeb Intranet Search) in the upper left-hand corner of the IRWeb

      Note:

      The search engine will help you find the information you are looking for. At the time of publication of this IRM, the search engine is powered by Google™.

    • important Servicewide news headlines in the top center section of the IRWeb

    • links to Employee Tools/Services in the upper right-hand corner of the IRWeb

    • links to important information in the upper left-hand corner of the IRWeb below the search engine

    • links to other helpful information

5.1.18.4.1.1.1  (05-20-2008)
Collection Web Site

  1. Access the Collection web site directly at: http://sbse.web.irs.gov/Collection/default.htm

  2. Find the Collection web site by following these links:

    • IRWeb — http://irweb.irs.gov/

    • Services & Enforcement — http://irweb.irs.gov/org/index.asp#DCSE

    • Small Business/Self-Employed (SB/SE) — http://sbse.web.irs.gov/

    • Collection — http://sbse.web.irs.gov/Collection/default.htm

  3. Become familiar with the helpful information available on the Collection web site such as:

    • Investigative Techniques and Sources — provides industry and profession specific information to facilitate case resolution,

    • Quick Index to Collection IG Memoranda — provides Interim Guidance Directives,

    • Collection Program Letter — provides the current SB/SE Collection Program Letter, and

    • Ask Collection Policy — secure technical clarification of procedures currently in the IRM or raise issues that need clarification in future IRM updates.

    • E-Business Link — this link will take you directly to the "Collection Corner" .

    The "Collection Corner" will help you to determine:

    1. when to use the Internet,

    2. what to look for,

    3. where to find it, and

    4. how to correctly interpret the information you find.

5.1.18.4.1.2  (05-20-2008)
Tax Law Research

  1. The Service has current corporate contracts for tax and legal research services. These services are managed by Servicewide Policy, Directives, and Electronic Research (SPDER). SPDER provides IRS employees with the following:

    1. an up-to-date, searchable web-based version of the Internal Revenue Manual (IRM), and

    2. primary and secondary Federal tax resources, news, business, and legal sources.

    Reminder:


    Although you could perform tax and legal research using a search engine (such as Google, MSN, Yahoo, or AOL), you should use the commercial electronic research services provided by the Service. The trustworthy sources provided by the Service (such as CCH, LexisNexis®, or Westlaw at the time of publication of this IRM) yield more credible results upon which you can base your tax administration decision. The vendors stake their livelihood on accuracy and timeliness of their material and their editors, researchers, and attorneys ensure the authenticity of the content so you can be confident you can rely upon the information they provide.

  2. These electronic research services are fully linked to cited references which allow access to all tax law research material from one place.

5.1.18.4.1.2.1  (05-20-2008)
"IRM Online"

  1. The online version of the Internal Revenue Manual (IRM) is provided by LexisNexis® at the time of publication of this IRM. The IRM Online is the most up-to-date source for all internal policies, procedures and guidance. See IRM 5.1.18.4.1.2.1.1, Interim Guidance Directives.

  2. IRM Online is both searchable and linked:

    • the IRM Online is fully searchable, either from the table of contents or by key-word, and

    • the IRM Online links users directly to referenced documents such as a code section or a Revenue Ruling.

  3. There are two versions of IRM Online:

    • the complete IRM including Official-Use-Only (OUO) information (not including the Law Enforcement Manual (LEM)), and

    • the non-OUO version of the IRM.

  4. Click on the "IRM" link on the IRWeb at: http://irweb.irs.gov/ to access the IRM online. Here is the direct link to the IRM online: http://rnet.web.irs.gov/IRMOnline/irm.htm

5.1.18.4.1.2.1.1  (05-20-2008)
Interim Guidance Directives

  1. Sometimes Headquarters will issue an Interim Guidance Memorandum to provide the most up-to-date guidance about a particular subject.

    Reminder:

    Remember to search the Small Business/Self Employed Cross-Functional Program Management Interim Guidance Directives to determine if there is an applicable Interim Guidance Memorandum about the subject you are researching in the IRM.

  2. Access the Small Business/Self Employed Cross-Functional Program Management Interim Guidance Directives at: http://sbse.web.irs.gov/MS/IGMemos/default.asp

5.1.18.4.1.2.2  (05-20-2008)
"e-Research"

  1. Access the IRS Intranet Home Page (IRWeb) at this link: http://irweb.irs.gov/

  2. Click on the "e-Research" link on the IRWeb to access to ReferenceNet. Here is the direct link to ReferenceNet: http://rnet.web.irs.gov/index.htm

5.1.18.4.1.3  (05-20-2008)
ReferenceNet

  1. Servicewide Directives and Electronic Research (SPDER) provides the ReferenceNet web site as an end-user tool for the entire IRS population. ReferenceNet is a portal for core IRS policies, procedures, legal and tax research services, and other instructions to staff.

  2. .ReferenceNet contains information and links including the following:

    • ID administrators

    • customer support numbers,

    • training related to research services,

    • helpful links to IRM resources, and

    • instructions to staff.

    Follow either of these steps to access ReferenceNet:

    1. Access ReferenceNet via the "ReferenceNet" link on the SPDER web site at: http://spder.web.irs.gov, or

    2. Access ReferenceNet directly at: http://rnet.web.irs.gov/index.htm

5.1.18.4.1.3.1  (05-20-2008)
Tax Research Portal

  1. At the time of publication of this IRM, LexisNexis® is the primary provider of tax law information for IRS employees. You can use LexisNexis® to check your facts if you need to research an Internal Revenue Code section, a Revenue Ruling, or keep abreast of a pending tax court decision. LexisNexis® is contracted by the Service to provide employees access to comprehensive tax law research and the LexisNexis® Tax Research Portal makes research simple.

  2. Click on this link to access the Tax Research Portal: http://www.lexisnexis.com/clients/irshome/

  3. Click on the SB/SE tab to find the most popular tools.

5.1.18.5  (05-20-2008)
Asset Locator Research

  1. Employees are required to research public records in-person or online to locate taxpayers and/or their assets. The Service has a current corporate contract for online asset/locator research services for IRS employees. This national asset locator tool contract is managed by Servicewide Policy, Directives, and Electronic Research (SPDER).

  2. The national asset locator tool provides easy access to public records such as real estate transactions, real property, corporate officers, vehicles, and aircraft, as well as information on people and businesses. There are vast resources available on the Internet which can also provide information on these topics, and should be considered as a supplement to the national asset locator tool. The tips and leads available from the national asset locator tool help ensure quality case work and a high level of customer service whether searching one county or nationwide.

    Note:

    At the time of publication of this IRM revision, the current contract vendor is LexisNexis®, and the national asset locator tool is Accurint.

    Note:

    Information from the national asset locator tool is not considered adequate where the IRM requires court house records research.

  3. Contact the appropriate ID administrator listed on ReferenceNet for your operating division to secure an ID and password.

    1. access ReferenceNet via the SPDER web site at: http://spder.web.irs.gov, or

    2. access ReferenceNet directly at: http://rnet.web.irs.gov/index.htm.

  4. Secure an ID and password from the administrator.

  5. Use your ID and password to access the national asset locator tool to research public records data and perform nationwide research on your taxpayer.

5.1.18.5.1  (05-20-2008)
Use of Asset Locator Research Results

  1. Use the asset locator research results to resolve the account as described in the following procedures.

5.1.18.5.1.1  (05-20-2008)
New Address

  1. Check command code NAMES to eliminate new addresses received from asset locator research for individuals with similar names but different SSNs.

  2. Use any new address received from asset locator research to attempt taxpayer contact, if you have not yet made taxpayer contact.

  3. Take one of the following actions to attempt to contact the taxpayer at the new address:

    1. Make a field call or send a letter to the taxpayer's address regarding addresses within your local area, or

    2. Send a letter to the taxpayer's address regarding addresses outside of your local area.

      Note:

      These procedures are generally followed when you have been unable to locate a taxpayer during the initial field contact attempt. See IRM 5.1.10, Taxpayer Contacts , for initial contact requirements.

      Note:

      See IRM 5.1.18.13, United States Postal Service, for further information on the use of postal tracers in these situations.

5.1.18.5.1.2  (05-20-2008)
New Asset Information

  1. Use the any new asset information received from asset locator research to attempt to resolve the account:

    1. work with the taxpayer to resolve the account, or

    2. take enforced collection action, as appropriate.

    Caution:

    A search of the actual court house records or other governmental records is required to verify the accuracy of the information obtained from the national asset locator tool prior to taking any enforced collection actions where court house records research is required.

5.1.18.6  (05-20-2008)
Locator Services Support

  1. Functional Automation Support (FAS) provides automation technical support, system issues troubleshooting, and training for software programs used by Collection Field function (CFf) employees.

  2. The primary programs supported by FAS include:

    • Case Diagnostic Tools, and/or

    • Locator Services.

    Note:

    FAS also supports infrastructural systems (other applications) as well, including Automated Trust Fund Recovery (ATFR), Integrated Collection System (ICS), and ENTITY, but these system/applications are not locator services, so the FAS support for infrastructural systems is not discussed in this IRM section.

  3. Locator Services include (but are not limited to) the following:

    • the national asset locator tool (Accurint at the time of publication of this IRM)

    • the credit bureau web browser (Smart.Alx at the time of publication of this IRM)

    • the tax research portal (LexisNexis® at the time of publication of this IRM)

    • Department of Motor Vehicles (DMV)

  4. Case Diagnostic Tools include (but are not limited to) the following:

    • Title Reports

    • Uniform Commercial Code (UCC)

    • Corporate Information — Secretary of State

    • Employment Development Department (EDD)

  5. Contact the appropriate Collection Automation Coordinator (CAC) or Functional Automation Coordinator (FAC) in FAS if you require assistance, support, or training.

    1. Contact the CAC for your area for case diagnostic tools and/or locator services support or training.

    2. Contact the FAC for your area for case diagnostic tools and/or locator services support or assistance.

  6. Collection Automation Coordinators (CACs) are professional employees who are subject matter experts (SMEs) for the case diagnostic tools and locator services. CACs:

    • ensure automation programs and management applications are compatible with all technical, legal, and administrative provisions,

    • complete analytical reviews,

    • develop reports, memoranda, and decision packages.

    • coordinate and conduct training, and

    • act as liaison with other functions at Headquarters, the Areas, and MITS.

  7. Functional Automation Coordinators (FACs) are technical employees who provide administrative support to the Area CACs . FACs:

    • oversee OL 5081 applications, and

    • support commercial off-the-Shelf (COTS) software.

  8. Use this link to access the FAS web site: http://fas.web.irs.gov/

5.1.18.6.1  (05-20-2008)
Procurement of Locator Services

  1. Functional Automation Support (FAS) provides procurement support. Generally, the Functional Automation Coordinator (FAC) or the Collection Automation Coordinator (CAC) is responsible for requisitioning specific locator services and related equipment. The responsible procurement office will provide any necessary procurement assistance. "Local" contracts may still be required for data that is unavailable from the national contract vehicles.

  2. FAS supports local locator service contracts such as contracts with the state for employment and DMV information as well as title report contracts. FAS inputs the annual contract renewals and completes the monthly, quarterly, or annual "Receipt and Acceptance" . Some contracts require automation support to connect from the IRS network to the vendor network. In these cases, FAS has acted as a facilitator between MITS, Mission Assurance, and the end users to ensure the setup, installation, and testing of software when necessary. In some cases, based on requests from the Area, FAS will locate new vendors, secure contracts for services, etc. FAS will support end users on the use of national locator services contracts as well as use of the local contracts.

  3. Use this link to access the FAS web site: http://fas.web.irs.gov/

  4. Refer to IRM 1.4.5, Corporate Tax Administration Tools, when considering any procurements. It provides helpful information regarding the background on the corporate delivery of electronic research services, an overview of each corporate tax administration tool, how to access them, and the related training products.

5.1.18.6.2  (05-20-2008)
Training on the Use of Locator Services

  1. Functional Automation Support (FAS) provides training for software programs used by Collection Field function (CFf) employees to facilitate effective use of the various locator services. Managers are responsible for ensuring employees:

    1. have access to the tools needed to perform the job effectively, and

    2. receive the training required to use the tools effectively.

  2. Collection management will work with Learning & Education (L&E) personnel to ensure that appropriate locator services related topics are adequately covered in Collection CPE sessions.

  3. The Servicewide Directives and Electronic Research (SPDER) web site at: http://spder.web.irs.gov provides information on all the locator services training products.

5.1.18.7  (05-20-2008)
Real Property Records

  1. Real property records are a critical source for locating taxpayers and their major assets. Many real property records are available online although real property records have yet to become universally automated. However, electronic real property research may only provide limited coverage and also has other limitations. In many instances, the locator vendor provides electronic coverage of a particular state, but many counties in that state are not covered. The electronic grantee/grantor indexes may not be sufficient to determine how ownership in a piece of property occurred or was conveyed. Additionally, the public records data in third-party vendor electronic systems may have errors because data is sometimes entered poorly, processed incorrectly, is not up-to-date is not up-to-date, and is generally not free from defect.

  2. In some states, and especially in large metropolitan areas, the real property records are available electronically from the courthouse without going through a third-party vendor.

  3. Some collection areas have been able to arrange for direct data base access where courthouse records are automated, but such arrangements may be complicated by the varying systems encountered from one county/city to the next. See IRM 5.1.18.6.1, Procurement of Locator Services.

  4. Real property records are currently available for all the states and the District of Columbia through the national asset locator tool.

    Exception:

    Due to contractual restrictions, real property records are not currently available for Maine through the national asset locator tool.

  5. Search real property records as provided in your area, either in-person or online, according to the following procedures.

5.1.18.7.1  (05-20-2008)
In-Person Records Check at the Courthouse

  1. Complete a real property records search in-person if you do not have the ability to research online.

  2. Use any new address or new asset information received from real property research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.7.2  (05-20-2008)
Electronic Access to Actual Courthouse Records

  1. Complete a real property records search electronically if you have the ability to research both the index and the actual documents online.

    Note:

    Researching actual property tax records online is notconsidered a courthouse real property records search.

  2. Use any new address or new asset information received from real property research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.7.3  (05-20-2008)
Electronic Access to Third-Party Vendor Records

  1. Complete a real property records search electronically if you have access to the records via a third-party vendor.

    Note:

    Researching third-party vendor property tax records online isnotconsidered a courthouse real property records search.

  2. Become aware if the electronic property records for your area have limitations.

  3. Do not rely upon third-party vendor electronic sources as definitively accurate.

  4. Verify third-party vendor electronic real property records data prior to taking enforced collection action.

    Reminder:

    You must make a field visit and perform a courthouse records check prior to seizure unless you have online access directly from the courthouse and can research records as stated in (4) above. See IRM 5.10.1.3.3, Equity Determination .

  5. Use any new address or new asset information received from real property research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.7.4  (05-20-2008)
Title Reports

  1. Title reports provide the following information:

    • Liens and Judgments — Listing of recorded property liens, tax certificates, and claims against the property.

    • Legal and Vesting — Full real estate legal description with the official county stamp of recording.

    • Current Owner — Identification of the actual owner of the subject property and ownership structure (i.e., joint, individual, trust, etc.)

    • Purchase Price / Date — Reveals what the current owners paid, seller information, and deed document details.

    • Mortgage Amount — Mortgage details for open loans against the property with lender name, amounts, and dates. Copy of current deed showing conveyance with abstract of all current liens, mortgages, and recorded documents.

    Note:

    FAS provides the support to secure title reports, however FAS does not support interpretation of the title reports.

  2. Secure a title report as provided in your area.

  3. Use any new address or new asset information received from a title report as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.8  (05-20-2008)
Department of Motor Vehicles

  1. All states and the District of Columbia have a department or office of motor vehicles (DMV). DMVs require state residents who own a motor vehicle to register their motor vehicle and require state residents who drive a motor vehicle to hold a valid driver license. In addition to driver licenses, motor vehicle departments issue identification (ID) cards to persons who require an ID card. The ID card looks like a driver license, but is used for identification purposes only.

  2. Information maintained by the various motor vehicle departments varies from state to state. Most states provide driver information, secured ownership information, lien holders, and vehicle information on cars, trucks, etc. ID card information is also provided.

  3. Information from twenty-five state motor vehicle departments is currently available through the national asset locator tool at the time of publication of this IRM. Due to contractual and regulatory restrictions, some states are not available, and it is illegal to make this information public in some other states. Some collection areas have been able to arrange for direct data base access to motor vehicle records.

  4. Use any new address or new asset information received from DMV as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.9  (05-20-2008)
Uniform Commercial Code

  1. National Uniform Commercial Code (UCC) filing records contain information from commercial lien filings. These records can help find assets used by businesses to secure commercial loans or to learn about financial relationships between businesses and individuals. The results include:

    • debtor name and address,

    • date and state of filing,

    • document number,

    • legal type,

    • secured parties name and address,

    • number of secured parties,

    • number of debtor parties,

    • number of filings, and

    • list of collateral.

  2. Uniform Commercial Code (UCC) information is currently available for all the states and the District of Columbia through the national asset locator tool.

  3. Use the "UCC Filings" tab in the national asset locator tool to conduct your search.

  4. Useany of the search criteria provided in the"UCC Filings" template.

  5. Use any new address or new asset information received from UCC research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.10  (05-20-2008)
Corporate Information — Secretary of State

  1. Corporate information refers to each individual state's Secretary of State, State Corporation Commission, or equivalent. These organizations provide information regarding the date of incorporation and the officers of the corporation.

  2. All states and the District of Columbia require that corporations register at the time of their incorporation, and the registration information is usually maintained in each state's capital. Secretary of State information is one of the most effective sources available for corporate accounts. It provides third party information, corporate officers, and registered agents, and is also fairly effective for verifying the existence of assets. However, the effectiveness of Secretary of State information varies from one state to another based on the method used to access the information.

  3. Secretary of State information is currently available for all the states and the District of Columbia through the national asset locator tool at the time of publication of this IRM with one exception.

    Exception:

    Due to contractual restrictions, Secretary of State information is not currently available for Delaware through the national asset locator tool. Revenue officers in the Dover, Delaware commuting area can make a field visit to the state office where visitors are permitted free access to the on-site computers provided and are allowed to write the information down free of charge. Revenue officers outside of the Dover, Delaware commuting area can access the Secretary of State of Delaware at: http://www.corp.delaware.gov/ to secure corporate information online for a fee charged to the employee's Enforcement Purchase Card. At the time of publication of this IRM, the fee is $10.00 per entity for status or $20.00 per entity for more detailed information including current franchise tax assessment, current filing history, and more. See IRM 1.32.6, Purchase Card Program Handbook.

  4. Use the corporate information received from the Secretary of State research to assess the Trust Fund Recovery Penalty (TFRP), if applicable.

  5. Use any new address or new asset information received from researching Secretary of State as discussed above in IRM 5.1.18.5.1 , Use of Asset Locator Research Results.

5.1.18.10.1  (05-20-2008)
Limited Liability Company Information — Secretary of State

  1. Limited Liability Company (LLC) Information is maintained by each individual state's Secretary of State, or equivalent, often in the same database as corporation records. These organizations provide information regarding the date of organization and the members and/or managers of the LLC.

  2. Information available from state records may assist you in identifying the taxpayer liable for certain employment taxes. See IRM 5.1.21, Collecting from Limited Liability Companies , for additional information.

5.1.18.11  (05-20-2008)
Employment Development Department

  1. The Employment Development Department (EDD) is a state agency, and in some states the agency name is different (the name changes from state to state). EDD provides secure information regarding the payroll information supplied by employers who have filed with the state. EDD information is especially useful when an employer may have filed state employment tax returns but not federal employment tax returns. Information includes number of employees, payroll, etc. The various state employment commissions (EC) have proven to be some of the best available sources of wage levy data. Access to these sources has been greatly enhanced by on-line vendor access and tape-to-tape exchange programs. These levy sources are very effective because the information is updated quarterly.

  2. Use IDRS command code ECREQ to request employment data from the specific states participating in the employment commission (EC) programs.

  3. Use any new address or new asset information received from EDD as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.12  (05-20-2008)
State Employment Commission Program —Tape Exchange Agreements

  1. The State Employment Commission Program involves tape exchange agreements between areas and the states. Every two weeks, a tape containing a file of all IMF taxpayers in fourth notice status is mailed to participating states by the responsible service center campuses. The controlling location code of the taxpayer determines to which state the taxpayer's record is sent.

  2. This tape contains records for both primary and secondary Social Security Numbers (SSN). The state matches the SSN on the tape with those on its employment commission (EC) data base. For each SSN on the tape, the state will return at least one record, but, in many instances, multiple records may be returned, depending on how many quarters of information the state's database contains.

    1. If no records exist for the SSN, a"no-match" record will be returned . No levy source record is created on IDRS for a no-match record.

    2. If a record does exist for the SSN, a matched record will be returned including the names and addresses of the taxpayer's employers. For each matched record returned, a levy source record is created on IDRS. If IDRS shows that this levy source, as identified by the Employer's Identification Number (EIN) or state identification number, duplicates one previously sent, it will be dropped. The levy source record will identify whether the levy source belongs to the primary or secondary SSN.

  3. When a balance due account (BAL DUE) is passed to ACS, all levy source records on IDRS are forwarded automatically. If for any reason, the return tape is processed after the case goes to ACS, the EC levy source will be forwarded to ACS at the next update.

  4. Use CC LEVYS to obtain EC information already received from participating states.

  5. See IRM 5.11, Notice of Levy.

  6. Use any new address or new asset information received from researching CC LEVYS as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.

5.1.18.13  (05-20-2008)
United States Postal Service

  1. The United States Postal Service (USPS) provides an address update product — the National Change of Address Linkage (NCOALink). The IRS is a licensee of NCOALink, and as a licensee, the USPS provides a consolidated data file with change-of-address information to the IRS on a regular basis to help reduce undeliverable mail.

  2. The IRS receives a weekly file from the USPS. The file contains all of the reported changes of address in the United States for the week. The NCOALink file is matched with the Master File, which is updated with any address changes reported in the past 48 months.

  3. The only time the address of a taxpayer updates through NCOALink is when the taxpayer gives the USPS a change of address form. Then, and only then, will the taxpayer’s address be changed from one location to another. The "from" address must match what is on IDRS for the "to" address to be updated as the new address for a taxpayer.

  4. The Service benefits from this address update process by using the new addresses provided by the USPS to attempt contact/maintain contact with taxpayers. It isnot necessary to verify the taxpayer's Master File address with a postal tracer, as the address is updated by NCOALink.

5.1.18.13.1  (05-20-2008)
Multiple Possible Addresses

  1. Many times the national asset locator tool provides multiple possible new addresses; they come from diverse sources such as credit applications, mortgage companies, etc. The NCOALink product will attempt to match the Master File address with any change of address form filed in the past 48 months, if the taxpayer provided a change of address to the USPS. It may be most efficient to send correspondence to multiple addresses since the USPS will deliver mail from the Service to an address where other mail is delivered to the taxpayer. .

  2. Do not send a postal tracer to verify the Master File address for a taxpayer.

  3. Do not update the Master File address with information received from a postal tracer.

  4. Follow the appropriate procedure below when you find multiple addresses for a taxpayer to verify the taxpayer's address:

    1. Check command code NAMES to eliminate new addresses received from asset locator research for individuals with similar names but different SSNs.

    2. Consider making a field call or sending an appropriate contact letter to the taxpayer's address for addresses within your local area.

    3. Consider sending a letter to the taxpayer's address for addresses outside of your local area.

    4. Use a postal tracer to verify onlythose addresses that do not appear on the Master File.

    Note:

    These procedures are generally followed when you have been unable to locate a taxpayer during the initial field contact attempt. See IRM 5.1.10, Taxpayer Contacts , for initial contact requirements.

  5. Follow the procedures below if you need to send a postal tracer.

5.1.18.13.2  (05-20-2008)
Locating the Taxpayer's Address

  1. Ask the postal carrier for directions to a taxpayer's address if you need assistance locating the taxpayer's address in cases of Rural Route addresses or if a location has new streets not yet reflected on local maps.

    Note:

    It is always acceptable to request directions from the postal carrier.

5.1.18.13.2.1  (05-20-2008)
Rural Route Addresses

  1. Print rural route addresses on a piece of mail as follows:

    • "RR N BOX NN"

    Note:

    Do not use the words " RURAL," "NUMBER," "NO.," or the pound sign (#).

5.1.18.13.3  (05-20-2008)
Postal Tracer — Form 4759

  1. National Change of Address Linkage (NCOALink) substantially reduces the need for using postal tracers to obtain new addresses for most taxpayers. However, NCOALink does not eliminate the need for using postal tracers. There are two appropriate uses for postal tracers. Use a postal tracer to:

    1. obtain the physical address of a post office box holder, or

    2. verify an address that does not appear on the Master File.

  2. Do not send a postal tracer to obtain a new address for a taxpayer withoutfollowing the above procedures regarding multiple possible addresses.

    Reminder:

    If a taxpayer has a new address, and the United States Postal Service (USPS) is delivering mail to that address, USPS will deliver a letter from the Service whether or not the taxpayer has filed a change of address with the USPS. When the USPS has a new address for a taxpayer, the IRS also has that new address.

  3. Use Form 4759, Address Information Request - Postal Tracer, in the following manner:

    1. Submit Form 4759 to the Postmaster by delivering Form 4759 in person or sending the Form 4759 by mail to the local post office, or

    2. Send Form 4759 in the mail via the USPS to any post office outside of your local area.

  4. Follow the appropriate procedure below upon receipt of the taxpayer's physical address:

    1. Make a field call to the taxpayer's address for addresses within your local area, or

    2. Send a letter to the taxpayer's address for addresses outside your local area.

  5. Do not update the Master File address with information received from a postal tracer.

  6. Use any new address or new asset information from the USPS research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.


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