5.1.20  Collection Inventory

5.1.20.1  (05-27-2008)
Collection Inventory — Overview

  1. This IRM provides information, guidance, and procedures for Collection Field function (CFf) employees regarding collection inventory selection, delivery, and management.

  2. The procedures in this IRM are specifically for revenue officers due to the complex nature of the collection cases assigned to them although other employees in SB/SE and employees in other functions may refer to this IRM.

5.1.20.2  (05-27-2008)
Collection Inventory Management

  1. Our inventory selection and delivery systems deliver current, potentially collectible inventory to CFf. Collection inventory is selected and delivered by the Inventory Delivery System (IDS). IDS uses decision analytics, risked based collection criteria, and established business rules to route cases to:

    • the Automated Collection System (ACS)

    • the Queue (The Queue is a function of IDRS; cases remain in the Queue until requested.)

    • direct assignment to Collection Field function (CFf) as noted in IRM 5.1.20.2.3.1

  2. IDS uses the Address Research (ADR) application and outside vendors (such as the National Change of Address from the United States Postal Service) to locate good addresses for undelivered mail.

  3. IDS also uses the Telephone Number Research (TNR) application to locate current phone numbers for taxpayers.

  4. IDS receives data from the Automated Collection System (ACS), Automated Substitute for Return (ASFR), Automated 6020(b) (A6020b), Taxpayer Delinquent Account (TDA), and Taxpayer Delinquency Investigation (TDI), IDS requests relevant information from Corporate Files On Line (CFOL).

5.1.20.2.1  (05-27-2008)
Collection Inventory Management — Prioritization

  1. Risk-Based Collection is the way inventory is prioritized in the field; cases are categorized according to their risk level. The Inventory Delivery System (IDS) routes cases according to Risk-Based Collection criteria and decision analytics. Risk-Based Collection is a program of integrated policy, strategy, and measures that emphasizes long-term compliance solutions through the development and application of risk-based decision support tools. Decision analytics uses advanced modeling techniques to identify the most productive cases. These cases are then accelerated for immediate issuance to front-line collection employees.

  2. Both ENTITY and IDS use risk–based Collection criteria defined by their programs. The ENTITY System delivers inventory to the field and is prioritized by ENTITY-defined risk levels:

    • High Risk = 99, 101 - 108 (High Risk 100 = direct assignment to GM Hold File (bypass queue))

    • Medium Risk = 201 - 208

    • Low Risk = 301 - 303 and 399

5.1.20.2.2  (05-27-2008)
Collection Inventory Management — Tools

  1. Several tools are available to field employees to assist with inventory management. The available tools are:

    • the Integrated Collection System (ICS), and

    • the Entity Case Management System (ENTITY).

5.1.20.2.2.1  (05-27-2008)
Integrated Collection System

  1. The Integrated Collection System (ICS) provides workload management, case assignment/tracking, inventory control, electronic processing, and case analysis tools to support the SB/SE organization collection fieldwork. ICS is a two-tier system supporting detached/docked laptops.

  2. Access the ICS web site for further information including updates about ICS changes: http://icsweb.web.irs.gov/default.htm.

5.1.20.2.2.2  (05-27-2008)
Resources and Workload Management System (RWMS)

  1. The Resources and Workload Management System (RWMS) is currently used as one of several factors to determine the grade and risk levels of cases.

    Note:

    Future enhancements to the Inventory Delivery System (IDS) include the use of Consolidated Decision Analytics (CDA). RWMS data will no longer be used as the primary source to determine grade and risk level.

5.1.20.2.2.3  (05-27-2008)
ENTITY

  1. The ENTITY Case Management System is an automated system used at the group, territory, Area, and National level. The ENTITY system uses data from ICS and IDRS (Delinquent Investigation/Account Listing (DIAL) extracts) for case management, report compilation, and management information.

  2. See IRM 5.3.1, ENTITY Case Management System.

  3. See IRM 5.3.1.2.1, Case Assignment Procedures.

5.1.20.2.3  (05-27-2008)
Collection Inventory Management — Rules

  1. Existing business rules limit or restrict Balance Due Account (BAL DUE) and Delinquent Return Investigation (DEL RET) movement in several different ways.

5.1.20.2.3.1  (05-27-2008)
Cases that Bypass ACS and the Queue that go Directly to ICS

  1. The following BAL DUE or DEL RET cases move directly from notice status to active collection by CFf. These cases bypass both ACS and the Queue and are assigned directly to ICS (cases will be sent directly to the manager's hold file):

    • Any Non Master File (NMF) account

    • IRS Employee

    • Transaction Code (TC) 148-9 (Letter 903)

    • Any revenue officer manual (quick or prompt) assessment

    • Wage & Investment (W&I) case transferred to SB/SE campus or case transferred outside of current campus with an imbedded field assignment number or last Master File Status was Status 26

    • Possible problem/duplicate case where there is no Service Center (SC) History and the case is NOT being transferred and the last Master File Status 26

    • Open BAL DUE or DEL RET already assigned to ICS – new module added

    • Current IDRS assignment number to ICS and no open BAL DUE or DEL RET

      Example:

      CIP, OI, etc.

    • Quick Assessments

    • Prompt Assessments

    • Defaulted IBTF IA's

    • NMF Cases

    • Cases with Sub Code = 601, 602, 603 (Taxpayer Requested Contact)

    • Cases with Sub Code = 604 (Large Dollar Asset Case - IMF)

    • Any cases returning from Appeals (Status 72) - the most recent prior assignment was CFf

    • Any Innocent spouse (MFT 31) assessment - Master File Status = 21 and the most recent prior assignment was CFf

5.1.20.2.3.2  (05-27-2008)
Cases that Bypass ACS and Go to the Queue

  1. The following BAL DUE and DEL RET cases bypass ACS. They move from notice status directly to the Queue where they await assignment for collection:

    • TC 148-5, 6, 7 or significant account Intelligence code

    • Any DEL RET where the case code is 914 or 3949; Offer in Compromise (OIC) acceptance year is significant; Windfall Profit Tax, MFT 03 with abstract number 50 or 52 and abstract amount (assessment) is significant

    • MFT 12, 15, 31, 52, 61, 63, 64, 77, or 78

      Note:

      For DEL RET, MFT must be 12, 52, 61, 63, or 64

    • Left hand freeze code L , or a posted or pending non reversed TC 971 containing action code 65 – Innocent Spouse

    • Any installment agreement needing financial review

    • Effective January 2003: Any W&I BAL DUE with the most recent history record entry of notice type Computer Paragraph (CP) 504 and secondary BAL DUE selection code RP8

    • Any W&I DEL RET where the Repeater Indicator is 4 or 8

    • W&I case transferred to SB/SE campus or case transferred outside of current campus with an imbedded Queue assignment or last Master File Status = Status 24

    • Master File Collection Location Code (CLC) housekeeping or possible problem/duplicate case where there is no SC Status history and the case is NOT being transferred and the last Master File Status = Status 24

    • Any DEL RET or COMBO where the DEL RET Selection Code is 38

    • Any DEL RET where the MFT is 03 and the delinquent module filing requirement is 6 or 7

5.1.20.2.3.3  (05-27-2008)
Cases that Cannot be Moved to the Queue

  1. The following cases (whether when directly assigned or later routed to ICS) are restricted from moving to the Queue:

    1. Any Non Master File (NMF) account

    2. IRS Employee

    3. Refund Hold (DEL RET) case

    4. TC 148- 9 (Letter 903), reverse with a TC 149 as appropriate

    5. MFT 31, 46, or 79 and Collection Statute Expiration Date (CSED) expires within six months

    6. Secondary DEL RET Code I

    7. DEL RET notice code T (duplicate request)

    8. A "Code 1" PPIA ("Asset Case" ) will be prevented from moving to the Queue. A "Code 2" PPIA ("No Asset Case" ) will allow the case to go the Queue. These criteria are displayed the table below.

      Note:

      These codes can be found by checking IADIS or the IA record on ICS.

      Type of Case Code Restricted from Moving to the Queue?
      PPIA "Asset" Case 1 Yes
      PPIA "No Asset " Case 2 No

    9. Related module in Status 76 (immediate TDA pending) or related module in Status 77 (accelerated notice account)

      Note:

      You must wait until the related module(s) goes to Status 26 and then put the case in the queue.)

    10. Taxpayer cases, with some or all modules, under Appeals jurisdiction for a CDP or equivalent hearing.

      Note:

      This restriction from moving to the Queue is not systemic.

      Exception:

      If you open an OI on ICS, you may send the case to the Queue.

    11. Restrictive Conditions listed in Section 8 of Document 6209

      Note:

      IDRS balance due processing identifies certain restrictive conditions which prohibit issuance of balance due notice and TDA. If a restrictive condition exists on a tax module eligible for update to notice of TDA status, the module will not update to the next status. It will be analyzed in the next processing cycle for issuance of the appropriate status.
      If any of the conditions displayed in the table below (Master File Codes — Restrictive Conditions) are present on a module/account, IDRS will not update the status or resume balance due notice/TDA issuance until all restrictive conditions are removed.
      These conditions must be taken into consideration when a command code or transaction code are input to reactivate the balance due notice/TDA routine.

      Master File Codes — Restrictive Conditions
      1. Unreversed TC 470
      2. Pending TC 470 (no CC, CC 94, or cc 98)
      3. Left-hand freeze 0 (0-)
      4. Right hand freeze A, J, V, or X
      5. Pending unpostable transaction code (UN or NU)
      6. Current cycle is earlier than cycle of return due date
      7. FTP penalty or interest accrual amount is negative
      8. MasterfiIe balance due notice issued within the past 5 vveeks
      9. Unreversed TC 914. TC 916. TC 918 present
      10. Pinex notice 569T or 569R issued within the past 5 weeks
      11. PN TC 150 - 400, 411, 412, 488, 520 (except CC 71, 72, 75, or 84), .530, 534, 535, 611-692 (except TC 6XO), 701-772 (except TC 7XO), 792, 802, 806, 807, 820-843, 850, 890, 971, 976, 977
      12. lf next notice is 505 (TDA) and -G freeze present
      13. Module within 6 months of the latest CSED
      14. Unreversed TC 608 present
      15. LEFT-HAND-FREEZE-CD contains an L-
      16. Private Debt Collection Indicator Code

    Note:

    Most of these cases are currently identifiable by ICS and are blocked up-front. Those cases not blocked will return to ICS or show up on the ICS/ENTITY Quality Analyst (IQA) listing.

5.1.20.2.3.4  (05-27-2008)
Cases with Restricted Assignment

  1. The following cases (whether directly assigned or later routed to ICS) are restricted from moving from their present assignment. These cases cannot be sent to the Queue and they are not transferable, etc., when the following conditions are present:

    • Disaster code 1, 2, or 3

    • Left hand freeze code O

    • Any IMF case with a Killed in Terrorist Action (KITA) indicator 2

5.1.20.2.4  (05-27-2008)
Collection Inventory Management— Assignments and Inventory Levels

  1. Inventory is delivered to CFf in different ways; there are various types of revenue officer assignments. Target Inventory Levels were implemented to establish consistent inventory levels and maximize customer service and productivity for revenue officers nationwide. The ENTITY Case Management system is the primary method by which managers assign cases to the revenue officers. Once cases have been assigned, they may be reassigned using ICS.

5.1.20.2.4.1  (05-27-2008)
Revenue Officer Assignments

  1. Revenue Officer assignments consist of the following:

    1. Balance Due Accounts (BAL DUEs)

      Note:

      The dollar criteria for routine BAL DUE issuance is included in paragraph (2) below..

    2. Delinquent Return Investigations (DEL RETs)

    3. Courtesy Investigations (OIs)

    4. Federal Tax Deposit Alerts (FTD Alerts)

    5. Offers in Compromise (Form 656 , Offer in Compromise, and Form 2525 , Record of Offer in Compromise)

    6. Compliance Initiative (or Improvement) Projects (CIPs) (formerly known as Returns Compliance Programs)

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5.1.20.2.4.1.1  (06-01-2010)
Document Routing

  1. CFf prepares Form 795/795A (CG), Daily Report of Collection Activity, to transmit secured payments and/or returns for processing or Form 795/795B (CG) to transmit closed cases as discussed in IRM 5.1.2, Remittances, Form 809, and Designated Payments.

  2. CFf uses Form 3210, Document Transmittal, to transmit all tax related documents to the campus when the use of Form 795/795A or Form 795/795B (CG) is not appropriate. Form 3210 is not required, but may be used, for intra-office routing of tax related documents in the same territory.

  3. Campuses use Form 3210, to transmit assignments and other tax related items. Compliance Services Collection Operation (CSCO) is required to transmit items to field offices for assignment as appropriate, as follows:

    1. Case assignments are attached to Form 1976, Assignment Slip, for routing to the proper responsibility unit and then batched for shipment to the field office on Form 3210.

    2. Other work items, such as Offers in Compromise, estate tax extensions and CP-44s, are attached toForm 1725, Routing Slip, and then transmitted on Form 3210.

    3. Delinquent Investigation/Account Listings (DIALS) are attached to Form Form 3210.

5.1.20.2.4.2  (05-27-2008)
Targeted Inventory Levels

  1. Targeted Inventory Levels are used in an effort to secure maximum productivity for Collection Field function (CFf) without a cost to quality and customer service. National inventory ranges are established to provide a measure of uniformity between the various field offices. The national ranges are as follows:

    • Grade 13 — 34 to 50 taxpayer cases

    • Grade 12 — 34 to 50 taxpayer cases

    • Grade 11 — 53 to 79 taxpayer cases

    • Grade 9 — 70 to 95 taxpayer cases

    • Grade 5/7— 59 to 89 taxpayer cases

  2. The following factors must be considered to determine the appropriate inventory level:

    • National targeted inventory ranges

    • Level of case difficulty

    • Geographical area covered

    • Collateral duties, e.g., official union duties, Equal Employment Opportunity (EEO) assignments, on-the-job instructor assignments, and quality improvement assignments.

  3. Identify and discuss situations such as unmanageable inventory levels and/ or mis-graded cases with your manager.

    Note:

    Managers utilize ENTITY reports to monitor inventory levels and case grades.

  4. When your assigned inventory is in excess of the national maximum level (or other appropriate reduced level) for your grade for more than 10 workdays, the IRM requirements relating to prompt initial and follow-up contacts will be suspended for the time period that you carry the higher inventory level.


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