5.8.3  Centralized Offer in Compromise Transfers, Perfection, and Case Building

Manual Transmittal

May 14, 2013

Purpose

(1) This transmits a revision for IRM 5.8, Offer in Compromise, Section 3 — Transfers, Perfection and Case Building.

Material Changes

(1) This revision is a complete rewrite and reorganization of IRM 5.8.3.

(2) The procedures in this section of the IRM apply to the Process Examiners duties in the Centralized OIC sites. Sections have been removed from 5.8.2 and inserted in 5.8.3. All sections have been renumbered and reorganized as appropriate.

(3) 5.8.3.2 incorporates Interim Guidance Memo SBSE-05-0213-011, reissued on 02-01-2013.

(4) 5.8.3.3 previously 5.8.3.2- Added language for new AOIC Appeals CDP procedures.

(5) Deleted former subsection 5.8.3.3, Processing Offer Transfers Between COIC Sites.

(6) 5.8.3.4 - Added language for field transfer criteria and timeframe to be used in field transfer letter incorporating Interim Guidance Memo SBSE-05-0612-016, issued on 06-29-2012.

(7) 5.8.3.4 (2) added language to allow Combo A letter to be sent to the taxpayer on cases being transferred to the field.

(8) 5.8.3.5 incorporates Interim Guidance Memo SBSE-05-1212-098, reissued on 12-31-2012 on Securing Related Offers.

(9) 5.8.3.6 and 5.8.3.6.1 previously 5.8.3.4.1 and 5.8.3.4.2 incorporates Interim Guidance Memo SBSE-05-0213-010, reissued on 02-01-2013 defining case building and perfection of offers transferred to the field and an added note to ensure correct DPC codes on any payments.

(10) Deleted former section 5.8.3.6, Screen for Obvious Full Pay, per Interim Guidance Memo SBSE-05-0712-060, issued 07-24-2012.

(11) 5.8.3.7 and 5.8.3.7.1 incorporated Interim Guidance Memo SBSE-05-0213-010, reissued on 02-01-2013 defining case building and perfection for offers worked in the COIC sites.

(12) 5.8.3.8 - Added new subsection on requesting Estimated Tax Payments as part of case building procedures.

(13) 5.8.3.9 - New subsection on the AOIC Combo letter. This section was separated out from the previous 5.8.3.7.1 COIC Case Building Actions.

(14) 5.8.3.10 previously 5.8.3.9.

(15) Deleted former section 5.8.3.11, Exception Processing for Offers in Compromise Involving Taxpayers in Combat Zones.

(16) 5.8.3.11 - Added new subsection on processing telephone responses to Combo letters.

(17) 5.8.3.12 previously 5.8.3.10.

(18) 5.8.3.13 previously 5.8.3.8.

(19) 5.8.3.13.1 previously 5.8.3.8.1.

(20) 5.8.3.13.2 previously 5.8.3.8.2.

(21) 5.8.3.14 previously 5.8.2.5.1.

(22) 5.8.3.15 and 5.8.3.15.1 previously 5.8.3.12 and 5.8.3.12.1.

(23) 5.8.3.15.1 now titled Additional Procedures for Dishonored Checks formerly Procedures for Dishonored Payments When Offer is Still Assigned to COIC.

(24) 5.8.3.16 previously 5.8.3.13 Added language on manual refund monitoring.

(25) 5.8.17 previously 5.8.3.14.

(26) 5.8.3.17.1 - Added new subsection, Expedite Handling for Short Collection Statute Expiration Dates on Related Offers.

(27) 5.8.3.18, 18.1,18.2, 18.3 previously 5.8.3.15, 15.1,15.2,15.3.

(28) 5.8.3.18.4 previously 5.8.3.15.4 - Added language on requirements for Form 2848 representation on offers filed by joint taxpayers.

(29) 5.8.3.19 previously 5.8.3.16.

Effect on Other Documents

This material supersedes IRM 5.8.3, dated 03-26-2010. This material incorporates Interim Guidance Memos SBSE-05-0213-011, Centralized Offer in Compromise Defining Case Building Procedures, reissued on 02-01-2013, SBSE-05-0612-016, Interim Letters for Offer in Compromise, issued on 06-29-2012, SBSE-05-0212-098, Securing Related Offers, reissued on 12-31--2012, SBSE-05-0213-010, Centralized Offer in Compromise Case Building, reissued on 02/01/2013 and SBSE-05-0712-060, Centralized Offer in Compromise (COIC) Screen for Obvious Full Pay Processing, issued 07-12-2012.

Audience

SB/SE Collection and Campus Compliance employees.

Effective Date

(05-14-2013)

Scott Reisher
Director Collection Policy

5.8.3.1  (03-26-2010)
Overview

  1. Process Examiners (PE) are responsible for making a processability determination on all offer receipts, other than those based solely upon Doubt as to Liability (DATL). Processable offers are then perfected and built (i.e., internal and external information is secured to verify financial information) before being assigned for investigation. This chapter explains the procedures to be followed for determining jurisdictional responsibility, transferring cases, perfecting offers, and case building for offers in compromise.

5.8.3.2  (05-14-2013)
Perfection and Case Building Timeframes

  1. If an offer is received with payment(s), processability must be determined within 24 hours of IRS received date and case building completed within 16 days of Area Office, AO, received date.

  2. If no payment(s) is submitted, processability and case building must be completed within 16 days of the AO received date.

5.8.3.3  (05-14-2013)
Routing Cases Based on Jurisdictional Responsibility

  1. Except for CDP offers meeting COIC criteria, for all cases cited in the table below, generate and send the transfer letter to the taxpayer and/or POA, if applicable. Ensure all TC 480 or STAUPs have been input, as appropriate.

  2. The following table provides guidance when it has been determined that Collection does not have jurisdictional responsibility:

    If responsibility lies with… Then…
    DATL, other than Trust Fund Recovery Penalty (TFRP) - DATL and Personal Liability Excise Tax (PLET) - DATL Send the offer directly to the centralized DATL processing unit located at the Brookhaven campus. No fee is required for these offers. If the offer was loaded to the Automated Offer in Compromise system (AOIC) delete the offer. The offer will be loaded to AOIC, AO 19, by the DATL team.
    Appeals - Non-Collection Due Process (CDP) Move the payments from the AOIC Payment Screen to the AOIC Appeals Fee Screen. Delete the offer from AOIC and forward the case to Appeals using the Appeals Transmittal Form 3210. See Exhibit 5.8.3-1.
    Appeals - CDP offers meeting COIC criteria
    • Load offer on AOIC

    • Select OCC 10

    • Update Offer Type, Collection Due Process ,which will generate an offer type "P"

    • Assign offer to next appropriate inventory; 51XX, 60XX.

    Appeals - CDP offers that do not meet COIC criteria
    • Load offer on AOIC

    • Select OCC 10

    • Update Offer Type Collection Due Process which will generate an offer type "P"

    • Transfer offer to AO 21

    • Forward complete offer file to Appeals

5.8.3.4  (05-14-2013)
Field Cases – Identification and Transfer

  1. Once the COIC sites have loaded the offer to AOIC and completed initial processing and perfection, pending offers in the following categories will be immediately transferred to the appropriate Area Office to be worked in a field group:

    • Corporations

    • Employment Tax from Partnerships

    • Estates and trusts

    • Currently incarcerated taxpayers

    • Trust Fund Recovery Penalty (TFRP) – Doubt as to Liability (DATL)

    • Personal Liability Excise Tax (PLET) - Doubt as to Liability (DATL)

    • Any business with employees

    • IMF taxpayers involved in a closely held corporation

    • Limited Liability Partnership (LLP) and Limited Liability Company (LLC)

    • IMF taxpayers whose primary source of income is from a partnership

    • Sole proprietors with gross receipts over $500,000

    • International taxpayers

    • Offers worked by a field OS within the past 24 months

    • Docketed court cases

    • Offers involving court-ordered restitution

    • Department of Justice, see IRM 5.8.2

  2. Prior to transfer to the field, COIC will generate the AOIC transfer letter or Combo A letter and send to the taxpayer. When preparing the letter, the PE must use 120 days as the time frame for taxpayer contact.

  3. All offers forwarded to Area offices for investigation will be sent to a central point designated by the Area office.

5.8.3.5  (05-14-2013)
Processing Forms 656 and Initial Offer Payments

  1. Taxpayers are required to include one application fee and TIPRA payment or check the Low Income Certification box in Section 4 of the Form 656 for each Form 656, Offer in Compromise, submitted, other than those based solely on DATL.

  2. There should only be as many Forms 656 as there are entities. In conjunction with an acceptance letter, the Form 656 constitutes a binding agreement between the government and the taxpayer.

    Example:

    (1) Two taxpayers who jointly owe the same liability (including spouses living separately or divorced) may submit a joint OIC on one Form 656 showing each name, address, and taxpayer identification number. However, separate OICs (one for each person) may be submitted if the individuals deem it to be appropriate for their particular situation.

    Example:

    (2) Taxpayers who owe both joint liabilities and TFRP liabilities for the same quarters and the same amount, must submit two offers.

  3. There may be instances when a taxpayer sends in three offers when only two are required. In those cases you should:

    • Add the applicable MFTs from the third offer to each of the remaining two offers.

    • Treat any additional application fee and/or TIPRA payment as a deposit (apply it to the 4710 account).

    • Inform the taxpayer, preferably by telephone, of the actions taken.

    • Put an "X" through the first page of the third offer and keep it in the case file.

  4. The table below is intended to assist in identifying a processable offer for application fee purposes and provide guidance on advising the taxpayer when more than one Form 656, application fee, and/or TIPRA payment is required.

    If... Then the requirement is...
    (1) two TPs owe joint liabilities only (without checking the Low Income Certification box in Section 4 of the Form 656) to send in one Form 656 with one application fee and TIPRA payment.
    (2) two TPs owe joint liabilities only but they send in two Forms 656 with one check for the $150 application fee and TIPRA payment (without checking the Low Income Certification box in Section 4 of the Form 656) to send in one Form 656, application fee, and TIPRA payment. PEs will:
    • Load all liabilities to the AOIC MFT screen

    • Put an "X" through the first page of the second offer and keep it in the case file

    .
    (3) two TPs have separate liabilities only and they send in two Forms 656 but one $150 application fee and TIPRA payment (without checking the Low Income Certification box in Section 4 of the Form 656). to send in two separate Forms 656 with two separate application fees and TIPRA payments. However, if only one application fee and TIPRA payment was sent with the two separate offers PEs will:
    • Load all liabilities to the AOIC MFT screen using the appropriate "P" , Primary, or "S" , Secondary, designation.

    • Put an "X" through the first page of the second offer and keep it in the case file

    • The related offer will be secured by the Offer Examiner/Offer Specialist (OE/OS) prior to accepting the offer.

    (4) two TPs have joint liabilities and one or both of the TPs also have separate liabilities and the TPs submit one Form 656 with both the joint and separate liabilities and only one $150 application fee and TIPRA payment (without checking the Low Income Certification box in Section 4 of the Form 656). to send in two separate Forms 656 with two separate application fees and TIPRA payments. The offer will be deemed processable and the PE will:
    • Load all liabilities to the AOIC MFT screen using the appropriate "B" , Both, "P" , Primary, or "S" , Secondary, designation.

    • The offer will be perfected by the OE or OS prior to accepting the offer. The PE will not secure the second offer.

    (5) a corporation or partnership is submitting an OIC and one Form 656 is submitted that includes both the corporation or partnership and individual liabilities with one application fee and TIPRA payment (The Low Income Certification for individuals only. In this scenario, no Low Income Certification was indicated on the Form 656) to send in two separate Form’s 656, one for the corporation or partnership and the other for the individual.
    • Prepare an amended/revised Form 656 by completing items 1 through 5 with the entity and tax liability information for the business (corporation or partnership).

    • Prepare a second Form 656 by completing items 1 through 5 with the entity and tax liability of the individual.

    • Annotate the top of the Form 656, "Related to Offer Number" , inserting the number of the original offer. This will help identify that the offer was submitted in response to a perfection request.

      Note:

      Clerical units should be aware that new offers received in the PO Box designated for response correspondence must keep all correspondence and attachments associated with the offer to assist in the identification of the related offer.

    • Include Option Y in the combo letter.

    • Include the amended/revised Form 656, and the copy of the original Form 656 with the combo letter .

    • If the TPs refuse to perfect the offer, return the original offer without any further consideration.

    (6) two taxpayers have joint liabilities and either or both of the taxpayers also have separate liabilities and they submit two Forms 656 listing the joint liabilities on one and the separate liabilities on the other, but only one application fee and TIPRA payment (without checking the Low Income Certification box in Section 4 of the Form 656). to send in two separate offers with two separate application fees and TIPRA payments. However, if the taxpayers submitted two offers and one application fee and TIPRA payment, the PE will:
    • Load the joint Form 656

    • Load all liabilities to the AOIC MFT screen using the appropriate "B" , Both, "P" , Primary, or "S" , Secondary, designation

    • Put an "X" through the first page of the second offer and keep it in the case file

    • The offer will be perfected by the OE or OS prior to accepting the offer. The PE will not secure the second offer

    (7) an LLC is submitting an OIC and one Form 656 is submitted that includes both the LLC and individual liabilities with one application fee and TIPRA payment for the individual (without checking the Low Income Certification box in Section 4 of the Form 656).

    Note:

    To assist in the identification of an LLC see IRM 5.1.21.10.2 ,Offers In Compromise

    to send in two separate Forms 656, follow procedures in (5) above, unless the LLC is classified as a disregarded entity and the liabilities are for wages paid prior to 1/1/2009 or excise tax liabilities for periods ending prior to 1/1/2008, which may be included on the same Form 656 as the taxpayers individual or sole proprietorship liabilities.

    Note:

    In instances where the liability is owed by an LLC for employment taxes on wages paid prior to and subsequent to 1/1/2009 or excise tax liabilities prior to and subsequent to 1/1/2008, the taxpayer may be required to submit two Forms 656, application fees, and TIPRA payments, even though the liabilities may have been reported under the same EIN, if the liabilities incurred prior to the dates specified above relate to an LLC classified as a disregarded entity.

  5. Individuals or self-employed taxpayers filing a DATC or ETA offer should complete and attach Form 433-A(OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals.

  6. All other forms of business entities (partnerships, corporations, limited liability companies, etc.) should submit Form 433-B(OIC), Collection Information Statement for Businesses.

    Note:

    Page 4 of Form 433-B(OIC) may not be required if information provided by the taxpayer includes a current Profit and Loss statement and/or sufficient information to make a determination.

  7. Taxpayers who submit an offer to compromise individually owed tax and also have a substantial interest in an ongoing business may be required to submit a Form 433-B(OIC) for that business.

5.8.3.6  (05-14-2013)
Perfecting Field Cases

  1. Certain critical errors in an offer must be corrected in order to perfect the offer and enable the Service to begin the offer investigation. For field cases, the only issues that will be perfected are the following:

    • Additional Forms 656; related application fee and TIPRA payment(s)

    • Balance of any TIPRA shortfall due at the time of submission

    • The offer was submitted on an obsolete Form 656

    • The Form 433A(OIC) and/or 433B(OIC) is missing

  2. Document the AOIC history to summarize any perfection issues.

  3. These cases must be flagged while in the hold file waiting for the taxpayer's response.

  4. Upon receipt of the response, the case must be immediately pulled and shipped to the receiving field office.

  5. If the taxpayer fails to perfect the offer, return the offer without further contact.

    Note:

    PEs must ensure all payments received have the correct Designated Payment Codes (DPC).

5.8.3.6.1  (05-14-2013)
Field Cases - Case Building

  1. Case building for field cases should be minimal.

  2. Prior to the transfer of cases to an Area office, COIC will include in the case file prints of IMFOLT or BMFOLT or a print of the Masterfile screen from AOIC.

  3. COIC will generate the TC 480 and Status 71 through the AOIC system. However, there may be situations when the Status 71 cannot be systemically generated (e.g., MFT 31 modules created prior to January 2005, imminent statute, etc.). In those cases where AOIC does not systemically generate the appropriate TC 480 and/or Status 71, COIC must manually input the appropriate codes.

    Note:

    If the TC 480 was manually input, it must be manually reversed. The AOIC history should be notated to alert the OE/OS that the TC 480 must be manually reversed at closing.

5.8.3.7  (05-14-2013)
Perfecting COIC Cases

  1. Prior to beginning an OIC investigation, certain critical errors must be corrected to perfect the offer. The combo letter on the AOIC system is designed to communicate with the taxpayer and/or their representative to request the necessary corrective action. If there is no response to the request letter, the OIC may be returned with no further contact. A return for failure to perfect an offer does not require a Form 1271, Rejection or Withdrawal Memorandum. The taxpayer has no appeal rights when the offer is closed as a return. The following errors must be corrected before beginning the investigation:

    • The offer was submitted on an obsolete Form 656, Offer in Compromise.

    • Balance of any TIPRA shortfall due at the time of submission.

    • There are unfiled tax returns (generally, this will not exceed a 6-year look-back period without managerial approval).

    • Form 433-A(OIC) and/or 433-B(OIC) is blank, partially completed, or missing.

    Note:

    An original return will not be requested if there is already a Substitute for Return (SFR) assessment on Master File.

  2. When sending a combo letter to perfect the errors listed above , also request the information shown below, if necessary.

    • The taxpayer's name, physical address or taxpayer identification number (TIN) is missing or incorrect and cannot be determined from IDRS or other documents submitted with the offer.

      Note:

      If the information can be located on IDRS or other documents submitted with the offer, input the correct information on AOIC and continue processing the offer.

    • An amount of money is offered, but the payment terms are not specified.

    • The taxpayer(s) signature is missing on Form 656.

    • The offered amount is blank or zero, unless terms are present.

  3. If a tax period with an amount due is missing from the Form 656, but all tax periods due can be determined from IDRS or other documents submitted with the offer, add the missing periods to the AOIC MFT screen and include them on the Form 656.

  4. When a taxpayer has included a tax period(s) for which there is no apparent amount due, do not add the tax period(s) to AOIC. Contact the taxpayer to determine if any issues are pending that may result in additional tax.

  5. If the basis for compromise is not indicated but it can be determined by reviewing the package, begin the investigation.

  6. An offer can be investigated but cannot be accepted until all errors are corrected and/or an amended Form 656 is signed. Therefore, offers will not be returned by the PE if the taxpayer fails to respond to any perfection issue listed in paragraph 2 above.

    Note:

    PEs must ensure all payments received have the correct Designated Payment Codes (DPC).

5.8.3.7.1  (05-14-2013)
Case Building for COIC Offers

  1. Case building for COIC cases should be minimal and will be limited to include prints of the following in-house research:

    • Copy of the NFTL, if notice of filing is on the Automated Lien System (ALS)

    • Applicable IDRS prints

  2. COIC will generate the TC 480 and Status 71 through the AOIC system. However, there may be situations when the TC 480/Status 71 cannot be systemically generated (e.g., MFT 31 modules created prior to January 2005, imminent statute, etc.). In those cases where AOIC does not systemically generate the appropriate TC 480 and/or Status 71, COIC must manually input the appropriate codes.

    Note:

    If the TC 480 was manually input it must be manually reversed. The AOIC history should be notated to alert the OE/OS that the TC 480 must be manually reversed at closing.

5.8.3.8  (05-14-2013)
PE Requests for Estimated Tax Payments

  1. PEs will request delinquent estimated tax (ES) payments as part of their case building actions for all self-employed taxpayers.

  2. Determine if the taxpayer is currently self-employed. If research indicates the taxpayer is no longer self-employed, and has not been self-employed for the entire calendar year, no ES payments are required.

  3. In order to be considered for an OIC, the self-employed taxpayer must be current with filing and payment requirements in the year in which the offer was submitted. ES payments are generally due quarterly; April 15th, June 15th, September 15th and January 15th of the following year.

  4. Self employed taxpayers are required to pay an amount equal to their current year self employment tax liability or the self employment tax owed in the prior year, whichever is less.

  5. To determine whether ES payments are required:

    • Check IMFOLI for the current year. ES payments may be identified by TC 640.

    • If quarterly ES payments are posted to the account, no further action is necessary.

  6. If there are no payments, or missing payments, take the following actions

    • Check the prior year TXMOD to determine the taxpayer's total tax liability (TC 150),

    • Subtract any withholding tax (TC 806),

    • If the result is $1,000 or more, this would be the amount due for ES payments in the current year. If the result is under $1,000, the taxpayer is not liable for ES payments.

    • Divide the total amount by 4 to get the quarterly amount due.

    • Determine the amount due up to the current date and request the shortfall using the Combo letter, paragraph AZ.

    • Annotate the remarks section of AOIC with your request and schedule appropriate follow-up.

  7. If an ES payment is the only corrective action requested in the Combo letter, the offer should be assigned to 60XX. PEs will not return the offer if the taxpayer fails to respond.

5.8.3.9  (05-14-2013)
AOIC Combo Letter

  1. The combo letter on the AOIC system is designed to communicate with the taxpayer and/or their representative to advise the taxpayer that their offer has been received or to request the necessary corrective action(s).

  2. If no perfection is required, issue the AOIC Combo Letter, Paragraph A. The date of possible taxpayer contact must reflect 120 days from the date of the Combo letter. Document the AOIC remarks with this information.

  3. If perfection is required, prepare the combo letter using the paragraphs that address all deficiencies. Include Pub 1, Your Rights as a Taxpayer, and Pub 594, The IRS Collection Process.

  4. Before mailing the AOIC Combo Letter to the taxpayer and representative, if appropriate, you must ensure the representative is authorized to receive correspondence. If a disclosure issue exists, use the applicable paragraph to indicate this in the AOIC Combo Letter, and do not send a copy of the letter to the representative. Instead, send the representative a letter notifying him or her that correspondence has been sent to his or her client and he or she must contact his or her client for the information.

  5. Post-date all AOIC Combo Letters five (5) calendar days. Schedule follow-up for the 45th day from the date of the letter. This means that at least 50 calendar days (5 postdate plus 45 calendar days from the date of the letter) will have elapsed before an established follow-up date.

  6. Envelopes containing the AOIC Combo Letter, which require a response (Options B, C, or D), must be stamped or otherwise marked "URGENT-TIME SENSITIVE" .

  7. Document the AOIC remarks to summarize all applicable perfection issues and the mailing date of the letter.

  8. Input the appropriate follow-up date.

  9. Retain a copy of the signed and dated AOIC Combo Letter in the file.

  10. Assign the offer to the applicable AOIC assignment number.

  11. If there is no response to the Combo letter, the OIC may be returned with no further contact. A return for failure to perfect an offer does not require a Form 1271, Rejection or Withdrawal Memorandum. The taxpayer has no appeal rights when the offer is closed as a return. For additional information on return reconsideration procedures see IRM 5.8.7.3, Return Reconsideration.

5.8.3.10  (05-14-2013)
Processing Taxpayer Responses to Combo Letters

  1. If the combo letter requested critical perfection information, but the taxpayer fails to respond, the offer may be returned with no further contact.

  2. If the offer is assigned to 51XX and the taxpayer responds, incorporate the response into the file and assign to 5500 or 5558, as appropriate.

  3. Responses received on cases assigned to 5150 (field) must be reviewed immediately, assigned to a PE for expedite processing, and transferred to the appropriate field drop point.

  4. All other responses must be reviewed within 10 calendar days of assignment to the PE.

  5. Upon reviewing the response, take the next appropriate action; assign to 60XX or return.

  6. If the taxpayer or their representative requests an extension of time to comply with the request for information, a reasonable amount of time should be granted. Document the AOIC history indicating the new deadline for the response. If the taxpayer and/or the representative fails to meet the additional deadline, return the offer with no further contact.

    Note:

    If the only corrective action requested was for estimated tax payments, the offer will not be returned by the PE if the taxpayer fails to respond. See 5.8.3.8, Estimated Tax Payments, above.

  7. If the request included unfiled or delinquent returns and the taxpayer failed to file the requested returns, provide copies, or provide a valid reason for not filing and internal sources do not reflect that the return(s) have been filed, the offer may be returned with no further contact.

    Note:

    If the taxpayer gives an explanation supporting special circumstances, the offer should be forwarded to 60XX for further consideration.

  8. If the request included:

    • Missing TIPRA payments,

    • Perfection of Form 656, Offer in Compromise (current revision or related Form 656 and applicable payments),

    • Missing Form 433-A(OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B(OIC), Collection Information Statement for Businesses,

    and the taxpayer failed to provide or address the missing payments or forms, internal research does not reflect the payment(s) have been received, and no special circumstances were identified, the offer may be returned with no further contact. For additional information on return reconsideration procedures see IRM 5.8.7.3, Return Reconsideration.

  9. Update the AOIC remarks summarizing the documents or payments received.

  10. Sign any amended or revised Forms 656 with the current date. Retain the original and any amended Forms 656 in the file.

  11. PEs are required to initiate the next appropriate action on cases where taxpayers have responded to the combo letter within 10 calendar days from the date the offer is assigned to the PE.

  12. An interim letter, advising 90 days for the next taxpayer contact, must be sent after the PE reviews the response, prior to assignment to an OE holding inventory. Document the AOIC Remarks that the interim letter was issued.

5.8.3.11  (05-14-2013)
Processing Telephone Responses to Combo Letters

  1. PEs are responsible for answering incoming calls from taxpayers, tax representatives and internal customers on the COIC toll-free telephone line.

  2. Generally these calls involve taxpayer inquiries regarding the status of pending offers or questions about a letter they received.

  3. For the majority of the calls, the PE should access the offer on AOIC and, by reviewing the remarks screen, satisfactorily answer the taxpayer's questions.

  4. There will be times when it will be necessary for the PE to take additional follow-up actions to address the taxpayer's concerns.

  5. The table below illustrates when follow-up actions must be taken.

    If the taxpayer... Then the PE will...
    states they received a letter indicating the need to file a delinquent tax return but indicate they are not liable for filing a return
    • Accept oral testimony.

    • Document the conversation in AOIC Remarks.

    • If this is the only corrective action that was requested, pull the case from 51XX and assign to 60XX.

    wishes to withdraw their offer
    • Accept oral testimony (withdrawal requests are not required to be made in writing). Inform taxpayer that there are no Appeal rights if the offer is withdrawn.

    • Document the conversation in AOIC remarks.

    • Pull the case from 51XX

    • Assign case for withdrawal processing.

    states they have special circumstances which may require expedite handling, such as:
    • Imminent foreclosure on home

    • Medical conditions

    • Funds for offer only available for a limited time

    • Document AOIC remarks.

    • Pull case from assigned inventory.

    • Give case to manager to expedite.

      Note:

      See "Expedite Handling" 5.8.3.17

  6. Any additional discussions with the taxpayer or tax representative that may require follow-up actions should be discussed with the manager.

  7. All phone calls must be well documented in the AOIC Remarks Screen.

5.8.3.12  (05-14-2013)
No Reply Procedures

  1. After the offer is determined processable and a combo letter has been sent, the offer should be held until the follow up date expires to allow the taxpayer to provide the requested information.

  2. If the taxpayer or their representative requests an extension of time to comply with the request for information, a reasonable amount of time should be granted. Document the AOIC history indicating the new deadline for the response. If the taxpayer and/or the representative fail to meet the additional deadline, return the offer with no additional contact.

  3. After the designated time period has passed and no response has been received, the "No Reply" return process will be initiated by the COIC site designated manager. The AOIC system will generate all the necessary letters and documents to allow for the closing of the case off of AOIC.

  4. Before closing the offer, check AOIC to verify that no response was received. Check IDRS to ensure there is no Combat Zone, -C Freeze, on the account. For additional information see IRM 5.19.10.6 , Combat Zone Freeze Codes.

  5. When returning the offer:

    • Retain the original Form 656, Offer in Compromise, any amended Forms 656, and a copy of the return letter in the file.

    • Cross out all IRS received dates with an "X" .

    • Stamp the Form 656 with RETURN and add the current date.

    • Update the case remarks on AOIC, including the reason for the return.

    • Include a copy of the history in the file and give the file to the manager for approval.

    Note:

    For information on return reconsideration procedures see IRM 5.8.7.3, Return Reconsideration.

5.8.3.13  (05-14-2013)
Processing Form 657, Offer in Compromise/Revenue Officer Report

  1. All OICs forwarded with a Form 657, Offer in Compromise/Revenue Officer Report, will be processed following expedite handling. See IRM 5.8.3.18, Expedite Handling, below for additional instructions on expedite handling.

  2. If an offer was sent in by an Revenue Officer (RO) with a Form 657 attached and the RO has determined that the OIC was submitted solely to delay collection, the COIC site will contact the originating RO to advise when the return letter has been issued. Unless a jeopardy situation exists, the RO must wait for COIC notification that the return letter has been issued before taking any collection enforcement action. See IRM 5.8.4.20, Offer Submitted Solely to Delay Collection, for solely to delay procedures.

  3. If the offer account is in Status 26 and the Form 657 was not received, the COIC site will contact the RO to request Form 657 and continue processing the offer.

  4. If a taxpayer or POA contacts the COIC site concerning an offer returned as solely to delay based on an RO recommendation, the call should be referred to the field Collection RO group manager.

5.8.3.13.1  (05-14-2013)
Offers Submitted Solely to Delay Collection per Forms 657

  1. When an RO determines that an offer is submitted solely to delay collection, the offer can be returned to the taxpayer without further consideration.

    Note:

    The term solely to delay collection is defined as an offer that was submitted for the sole purpose of avoiding or delaying collection activity. See IRM 5.8.4.20, Offer Submitted Solely to Delay Collection, for examples of solely to delay.

  2. The field OIC group manager and the COIC Unit Manager have delegated authority to approve returns based on solely to delay collection.

  3. An OIC is not considered submitted solely to delay collection just because there is an imminent CSED issue or if an offer has been rejected after investigation and the taxpayer exercises appeal rights.

5.8.3.13.2  (05-14-2013)
PE Procedures for Processing Forms 657 Submitted Solely to Delay

  1. The COIC site will:

    • Screen out all Forms 657, Offer in Compromise/Revenue Officer Report,

    • Make all Forms 657 a priority,

    • Promptly process, and

    • Immediately return the offer as solely to delay collection.

  2. Form 657 serves to establish coordination between the field Collection RO group, the offer group, and the COIC site to provide case documentation regarding these determinations, and to ensure collection action is not pursued until the offer is closed.

  3. If the COIC unit manager agrees with the determination, the COIC manager or employee will contact the originating field Collection RO to advise that the return letter has been issued.

  4. If the COIC unit manager disagrees with the determination, discussions should be initiated with the field Collection RO manager to reach an agreeable solution.

  5. Once the return letter is sent and the case reassigned to the field Collection RO, then the field Collection RO assigned the case must initiate appropriate collection action in accordance with IRM 5.1.10.8, Timely Follow Ups.

5.8.3.14  (05-14-2013)
Input and Verification of TC 480

  1. The PE must verify that the TC 480 has posted to each tax period shown on the Form 656.

  2. If the TC 480 has not posted, it must be manually input. If a manual input is required, document the AOIC history indicating that the TC 480 must be manually reversed at closing.

  3. The table below provides instruction for inputting the TC 480.

    If ... Then ...
    TC 480 is not present Input the TC 480 using CC REQ77. Use the date the Form 656 was signed by the IRS official as the transaction date, not the date the taxpayer signed.

    Note:

    If the TC 480 is manually input, it must be manually released.

    All TC 480s present do not have the same date the Form 656 was signed by the IRS official
    • Input TC 483 using CC REQ77.

    • Input TC 470 using CC REQ77 to prevent balance due notices from issuing.

    • Input TC 480 using CC REQ77 with the correct date; include a posting delay code of 1.

5.8.3.15  (05-14-2013)
Dishonored Payments

  1. For payments processed through Paper Check Conversion (PCC) Cincinnati Accounting receives the initial notification of a dishonored OIC payment from the Federal Reserve Bank through the Electronic Verification and Image Services (ELVIS) automated system.

  2. The Cincinnati Dishonored Check Unit will notify the taxpayer by mailing them a copy of the dishonored check and Form 12993-A, Check for Offer in Compromise Payment Not Accepted by Bank.

  3. Cincinnati Accounting will fax copies of the dishonored payments to the COIC site that originated Form 3210, Document Transmittal .

  4. Notification of dishonored payments that are processed through Remittance Strategy-Paper Check Conversion ( RS-PCC) will originate from Ogden Accounting.

  5. Upon notification of a dishonored application fee and/or TIPRA payment, the site will determine the current AOIC offer assignment.

  6. If the payment has been moved from the 4710 Account to the Master File, the Dishonored Check Unit will reverse the payment with a TC 671. If no notification of the dishonored payment is received, the dishonored check can also be identified by the TC 671 posted on IDRS.

  7. Upon notification of a dishonored application fee and/or TIPRA payment, the offer will be immediately returned to the taxpayer with the appropriate AOIC letter for a dishonored check. Document the AOIC history with the following information:

    • Which check(s) (application fee, TIPRA payment, or both) was returned,

    • The check number; and

    • Date the check was dishonored

  8. There may be no notification of dishonored checks processed through RS-PCC. Check IDRS for the posting of a TC 671 that may also include a secondary TC 280 or TC 286, dishonored check penalty.

  9. If the payment was dishonored while still in the 4710 account, Accounting will annotate their copy of the Form 3210 as appropriate.

    If... Then...
    The dishonored check was a deposit Notify Monitoring Offer in Compromise (MOIC) and continue investigation of the case.
    The dishonored check was for either the application fee or TIPRA payments Notify MOIC and stop investigation of the case.

  10. If the taxpayer or an authorized representative offers to replace the dishonored check and requests reconsideration of their offer, contact by the taxpayer or their representative must be made within 30 days of the date of the initial AOIC return letter. The replacement payment must be in the form of certified funds (money order, cashier check, etc.) and received within a reasonable amount of time. See IRM 5.8.7, Return, Terminate, Withdraw, and Reject Processing, for reconsideration procedures.

  11. When contacted:

    • Inform the taxpayer or the authorized representative that the offer will not be reconsidered if the payment is not made with certified funds.

    • A due date for receipt of the payment must be provided to the taxpayer or the authorized representative.

    • Advise the taxpayer or their representative to submit the payment by overnight mail.

    • Document the case history.

  12. Inform the taxpayer or the authorized representative that the certified funds must be mailed to either of the following addresses:

    Brookhaven: Mail Stop 681, PO Box 9011, Holtsville, NY 11742

    Memphis: AMC-Stop 880, PO Box 30834, Memphis, TN 38130-0834

  13. To ensure proper handling, advise the taxpayer to include a letter requesting reconsideration of the offer.

  14. If the payment was dishonored while still residing in the 4710 Account, the payment should be processed through established deposit procedures. A copy of Form 3210 must be forwarded to the appropriate MOIC function. Clearly indicate on the copy of Form 3210 that the payment is a replacement for a dishonored check. MOIC will load the payment on the AOIC deposit screen once the AOIC record is reloaded. MOIC is responsible for ensuring the payment is applied to the Master File as originally intended.

    Note:

    The offer will be reloaded, and a new offer number will generate. The new Form 3210 will reflect the new offer number. Cross reference the original offer number in the AOIC history, and in the remarks section of Form 3210 to ensure Accounting is aware there may be two Forms 3210 with different offer numbers for the same taxpayer.

  15. If the payment was dishonored with a TC 671 on the Master File, prepare a Form 3244, Payment Posting Voucher, to post the payment as a replacement for the dishonored payment.

  16. Upon receipt of the replacement payment, the employee that processes the payment must also:

    • Reload the offer on AOIC, if appropriate.

    • Verify if the payment was received within the established deadline as annotated in the AOIC remarks.

  17. If the payment is not received by the specified due date, the payment will be processed in accordance with TIPRA payment requirements, and the case will not be opened as a reconsideration. See IRM 5.8.7.3, Return Reconsideration, for reconsideration procedures.

5.8.3.15.1  (05-14-2013)
Additional Procedures for Dishonored Payments

  1. If the offer is still assigned to a COIC site, COIC will immediately cease processing the associated offer, update AOIC and return it to the taxpayer, utilizing letter option RET-AA.

  2. If the offer is assigned to an Area office, COIC will telephone the employee assigned the offer (or the manager of the assigned function, if no individual is specified on AOIC) to advise of the dishonored payment. Once contact is made with the assigned area employee or manager, COIC will fax a copy of the dishonored check to include in the case file and document AOIC to indicate to whom the information was communicated.

  3. If the case was processed as an Appeals CDP offer, COIC should query the Appeals Centralized Database System (ACDS) to determine which Appeals employee is assigned the case. COIC will telephone the Appeals employee to advise of the dishonored check and fax a copy to include in the Appeals case file. COIC will update the AOIC.

  4. If notification of the dishonored check occurs after the offer was closed on AOIC, the designated AOIC liaison within the COIC site will contact the Headquarters AOIC analyst to correct the application fee record of the closed offer.

5.8.3.16  (05-14-2013)
"Application Fee Refund/Apply Listing" Validation

  1. When an erroneous processability determination is corrected after forwarding the related application fee remittance for deposit, the COIC sites will need to determine whether the remittance has been deposited and credited to the taxpayer’s liability. An application Fee Refund/Apply Listing should be generated from AOIC to identify application fees that were initially determined to be processable, but later determined to be not processable. Generation of this listing is required in order for the COIC site to verify and authorize a manual refund.

  2. The COIC sites should request MOIC to generate the Application Fee Refund/Apply Listing on a monthly basis.

  3. Generally, when an offer is deemed not processable, the Service includes the taxpayer's application fee, and in some cases the initial TIPRA payment, see IRM 5.8.2.3, Processability, with the return disposition letter. However, depending on the elapsed time between inputting a processability change on AOIC from "Y" to an "N" , the Service may have already deposited the related application fee and applied the payment to the taxpayer's liability on Master File.

    If... Then...
    the payment has been deposited and still resides in the 4710 Account at the time the offer is deemed not processable prepare a Form 3753, Manual Refund Posting Voucher, to manually refund.
    the payment has been applied prepare the Form 5792, Request for IDRS Generated Refund, to manually refund.

    Note:

    The comments recorded on the Form 5792 must specifically state that the offer was deemed not processable and the taxpayer is entitled to the refund of the application fee. Include a contact name and number on the Form 5792 to provide Accounting a contact if questions should arise.

  4. To determine whether or not a manual refund of the application fee should be issued, research the completed Form 3210, Document Transmittal, to determine whether the application fee was deposited by the Service or returned to the taxpayer via manual refund procedures.

  5. Thorough research and care is required when determining which offers on the application Fee Refund/Apply Listing should receive manual refunds.

    If... Then...
    Research indicated that the application fee was returned to the taxpayer(s) The designated COIC site AOIC liaison should contact the Headquarters AOIC analyst to make the necessary adjustment to the application fee information to remove it from the Refund/Apply Listing. This action will eliminate the potential for the taxpayer to receive an erroneous refund.
    Research indicated that the application fee was deposited and still resides in the 4710 Account Contact the Monitoring Offer in Compromise (MOIC) function co-located with the COIC site and request a manual refund be generated to the taxpayer(s) using Form 3753.
    Research indicated that the application fee was deposited and has been applied to the Master File
    • Prepare Form 5792 to manually refund the application fee payment.

    • The designated COIC site AOIC liaison should contact the Headquarter AOIC analyst to make the necessary adjustment to the application fee information to remove the payment from the Refund/Apply Listing.

  6. To request the MOIC function to issue manual refunds, prepare a memorandum that includes:

    • The offer number,

    • The taxpayer(s) name and

    • The taxpayer(s) identification number (TIN).

  7. Records that support the COIC sites decision to either remove the offer record from the Refund/Apply Listing or to issue a manual refund must be retained for one year. At a minimum, the file should consist of:

    • Copies of the Refund/Apply Listing or a memorandum detailing the requested information,

    • Copies of the Form 3210 and

    • Any other supporting documentation necessary to support the decision, including, but not limited to, the Remittance Processing System daily remittance registers.

  8. TIPRA does not allow refunds of periodic payments. However, it does allow refunds of the application fee, the initial TIPRA payment in limited circumstances, see IRM 5.8.2.3 , Processability, and any deposits the taxpayer may have made.

  9. All IDRS manual refunds must be monitored to ensure they are issued to the taxpayer and to avoid duplicate refunds.

  10. When a manual refund is generated:

    • Open an IDRS control base and place in "M" status.

    • The status of the refund must be updated weekly on the Manual Refund listing.

    • Monitor open controls until posting of the TC 840.

    • Close IDRS control when the manual refund has posted.

    Note:

    For additional information see IRM 21.4.4.5.1, Monitoring Manual Refunds.

5.8.3.17  (05-14-2013)
Expedite Handling

  1. There may be occasions where a taxpayer or Power of Attorney requests expedited processing of their OIC due to an emergency or perceived emergency situation. Situations that may warrant expedited case processing include (but are not limited to):

    • A contract or business agreement requiring the taxpayer, as a condition of the contract or agreement, to resolve the tax liability by a specific date,

    • Availability of the money to fund the offer is limited to a certain time; and

    • A terminal illness may affect the ability to complete the payment terms.

    Note:

    Contact by phone, fax, or mail may identify an emergency situation not initiated by the taxpayer. Once identified, expedite processing may become necessary. Follow the procedures in paragraphs (3) and (4) below and discuss with your manager.

  2. Processing Forms 656, Offer in Compromise, must be given priority consideration and handled expeditiously due to pending collection action.

  3. Offers received with a request for expedited processing should be referred to management for a decision on whether or not expedited treatment is warranted.

  4. If a decision is made to expedite offer processing, the manager should document the AOIC history indicating the basis for the decision. Form 656 should be clearly labeled at the top "Emergency Processing Requested." Immediate processability and assignment for investigation should be made.

  5. Every effort should be made to close the offer within 90 calendar days of receipt. In an attempt to bring the case to a prompt and timely resolution and to meet the special needs of the taxpayer, immediate contact should be made with the taxpayer to request any additional information needed.

  6. If a decision is made not to expedite the case, the manager should document the basis for the decision on the AOIC history. Contact the taxpayer by telephone or correspondence explaining the basis for the decision. The case should be worked under routine processing.

5.8.3.17.1  (05-14-2013)
Expedite Handling for Short Collection Statute Expiration Dates on Related Offers

  1. The Collection Statute Expiration Date (CSED) is ten years from the date of a tax assessment.

  2. PEs are responsible for ensuring there are no tax liabilities with less than one year remaining on the CSED for any offer received that will require a request for a related offer prior to acceptance. CSED dates can be found on the AOIC MFT screen and on the IDRS prints in the case files.

  3. If any CSED is identified that is less than one year from the date the offer was received and there are no perfection issues:

    • Document AOIC Remarks screen,

    • Send Combo A to the taxpayer and representative, if applicable and

    • Give case file to manager to be expedited to an OE.

    Note:

    If case is to be transferred to the field, write: "Expedite - Short CSED" , on the front of the case folder.

  4. If a CSED is identified that is less than one year from the date the offer was received and perfection of the offer is required:

    • Send a Combo letter to request the needed perfection,

    • Document the AOIC Remarks screen and

    • Flag case for expedited handling,

    • When the response is received, give case file to the manager to be expedited to an OE.

    • If no response is received, return offer following IRM 5.8.3.12, No Reply Procedures.

    Note:

    If case is to be transferred to the field, write: "Expedite - Short CSED" , on the front of the case folder.

5.8.3.18  (05-14-2013)
Third Party Authorizations

  1. Taxpayers who wish to be represented must submit a properly executed Form 2848, Power of Attorney and Declaration of Representative. Input the representative's information on AOIC and retain a copy of the form in the paper case file. Forward the original for recording on the Centralized Authorization File (CAF).

  2. Send all original correspondence to the taxpayer and provide a copy to the representative if the taxpayer has checked the box in Part 2 of Form 2848.

  3. Individuals who are not authorized to practice before the IRS with respect to a collection matter (such as unenrolled return preparers and registered tax return preparers) may accompany taxpayers to meetings with a completed Form 8821, Taxpayer Information Authorization, or other proper authorization, and receive and provide information that relates to the offer investigation. They are not authorized to represent the taxpayers or sign documents relating to offers in compromise. See IRM 5.1.10.6.2, Right to Representation.

  4. If the offer contains liabilities for tax years or periods that are not also included on Form 2848, a letter cannot be sent to the representative covering these periods. Instead, send a redacted letter to the representative. The letter sent to the taxpayer can request completion of a Form 8821 or a Form 2848 to cover the missing periods.

  5. If, during the investigation, it is discovered that the POA no longer represents the taxpayer, secure a letter revoking the POA and document the case history. Remove the POA information from AOIC.

  6. Where a recognized representative has unreasonably delayed or hindered an examination, collection, or investigation by failing to furnish, after repeated requests, non-privileged information necessary to the examination, collection or investigation, the IRS employee conducting the examination, collection, or investigation may be given permission to bypass the representative and contact the taxpayer directly for such information [26 C.F.R. § 601.506 (b) (Statement of Procedural Rules)]. Prior to contacting the taxpayer directly, the IRS employee must first initiate bypass procedures. See IRM 5.1.23.5, By-Passing a Taxpayer's Representative, for procedures to bypass a POA.

5.8.3.18.1  (05-14-2013)
Third Party Authorization Requests

  1. During the course of the investigation, a taxpayer may submit a Form 2848 designating a third-party as their representative or power of attorney, or the taxpayer may submit a Form 8821 designating an appointee or may complete Section 11 of Form 656, Offer in Compromise, for a Third Party Designee. When properly completed and filed by the taxpayer, each of these documents should be recognized during an investigation, and interaction with the third party should be governed by the parameters allowed within each of these authorization forms.

    • Form 2848 - authorizes an eligible individual (e.g., attorney, CPA, enrolled agent, or enrolled actuary) to represent a taxpayer before the IRS and allows the individual to receive confidential information.

    • Form 8821 authorizes any individual, corporation, or partnership to inspect and/or receive a taxpayer's confidential information for the type of tax and the years listed on Form 8821, Item 3.

    • Section 11 of Form 656 allows a third party designee to discuss the offer with the IRS and allows the IRS to discuss with the designee any additional information needed to process the offer.

  2. The table below provides guidance to assist in distinguishing the differences between the Form 2848, Form 8821, and item 14 on the Form 656.

    Type of Form Designee may be individual or entity Designee can inspect limited tax info Designee may receive limited written info Designee can represent TP on collection matters Designee can execute waivers, consents, etc TP can designate more than one individual/ entity on the form Designee may redelegate to another individual or entity Unenrolled return preparer or registered tax preparercan be designated
    Form 8821 Either Yes Yes No No Yes No Yes
    Form 656 Section 11 Individual Only Yes No No No No No Yes
    Form 2848 Individual Only Yes Yes Yes Yes Yes Yes (Individuals Only) Yes (but only for examination matters with respect to a return he/she prepared)

5.8.3.18.2  (05-14-2013)
Form 8821, Tax Information Authorization (Rev. 10/2011)

  1. If Form 8821 is missing critical information that can only be provided by the taxpayer (e.g., tax years, type of tax, missing taxpayer signature, date), return to the taxpayer.

  2. Information that may be disclosed to the designee is limited to the type of tax, tax form number, tax years or periods, or specific tax matter that is listed on the Form 8821, item 3.

  3. If Form 8821, item 5a is checked, the designee is also entitled to receive copies of tax information, notices, and other written communication on an ongoing basis for the type of tax, tax form number, tax years, or specific tax matter listed under item 3.

  4. The designee is not authorized to respond to any type of correspondence on behalf of the taxpayer if the response advocates a position that would indicate that the designee is taking on a representational role.

  5. Mail the original Form 8821 to the appropriate Centralized Authorization File (CAF) campus in Memphis, Ogden, or Philadelphia (International), depending on the taxpayer’s state of residence. Page 2 of Form 8821 provides mailing addresses to be used.

  6. Form 8821 may also be faxed. Refer to page 2 of Form 8821 for detailed fax information. If the form is faxed, retain the original in the case file. Document the history to indicate the date and campus to which the form was sent.

5.8.3.18.3  (05-14-2013)
Form 656, Offer in Compromise, Section 11: Third Party Designee (Rev. 5/2012)

  1. The information and/or documentation that may be disclosed to the designee is limited only to information and/or documentation necessary to process an offer.

  2. Information may include tax liabilities omitted on the Form 656 or unfiled tax returns affecting the acceptance of the offer.

5.8.3.18.4  (05-14-2013)
Form 2848, Power of Attorney and Declaration of Representative (Rev. 3/2012)

  1. As of March 2004, the IRS will not honor a Form 2848, Power of Attorney and Declaration of Representative, if it designates a representative who is not authorized to practice before the IRS. Further, the form will not be treated as a Taxpayer Information Authorization. Form 8821, Taxpayer Information Authorization, is required to allow those individuals, who cannot practice before Collection personnel to access tax information beyond what would be allowed if they completed Section 11 of Form 656, Offer in Compromise.

  2. Taxpayers may authorize a student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) to represent them under a special order issued by the Office of Professional Responsibility (OPR). A copy of the letter from OPR authorizing practice before the IRS must be attached to Form 2848. Students who have been authorized to practice by a special order may, subject to any limitations set forth in the letter from OPR, represent taxpayers before any IRS office and should be treated the same as any other taxpayer representative designated on Form 2848.

  3. The power to sign the taxpayer's tax returns can be granted only in limited situations. Refer to Form 2848 and Treasury Regulations 1.6012-1(a)(5) and 1.6061-1(a) for additional information.

  4. If a joint return has been filed, one or both spouses may choose to be represented by a POA. However, beginning in October, 2011, If both spouses choose to be represented by the same individual(s) or different individuals, both the husband and wife are required to file and sign separate Forms 2848. If only one spouse is to be represented, only the one that will be represented is required to sign the Form 2848. Regardless, any authorized representative of either spouse is allowed access to tax information related to the joint tax return.

  5. Mail or fax Form 2848 to the appropriate Centralized Authorization File (CAF) campus in Memphis, Ogden, or Philadelphia (International) depending on the taxpayer's state of residence. Refer to the Instructions on the Form 2848 for mailing addresses and fax numbers. If the Form 2848 is faxed, retain the original in the case file. Document the case to indicate the date and campus to which the form was sent.

5.8.3.19  (05-14-2013)
Processing Forms 4844 from Automated Collection Services, Toll Free, or Other Service Divisions

  1. Form 4844, Request for Terminal Action, will be prepared by Automated Collection System (ACS), Toll Free, and Walk-in operations to provide information submitted by the taxpayer on a previously filed offer in compromise. Normally, these forms will be prepared if the taxpayer has yet to be contacted or notified of the status of the offer within 45 calendar days of the offer being submitted for processing.

  2. Form 4844 will be faxed to the appropriate COIC sites. The forms should be reviewed within 48 hours of receipt and any necessary action taken on the account based on the information provided.

Exhibit 5.8.3-1 
Form 3210 – To Appeals with Open TIPRA Statute

Appeals Transmittal used for transmitting OICs worked in conjunction with a CDP.

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