5.9.11  Insolvency Mail Processing

5.9.11.1  (10-15-2010)
Insolvency Mail

  1. National Addresses. The Internal Revenue Service has established two national addresses for the receipt of most Insolvency mail, one for trustee remittances and another for administrative mail. Chapter 7 and Chapter 13 payments are to be sent to Insolvency Remittance, Post Office Box 21125, Philadelphia, PA 19114-0325. Administrative mail such as court documents, forms, general correspondence, and most other bankruptcy related communications should be sent to Centralized Insolvency Operation, Post Office Box 21126, Philadelphia, PA 19114–0326.

    Note:

    Effective on 1/2/2011, all trustee remittances will be mailed to Centralized Insolvency Operation, Post Office Box 7317, Philadelphia, PA 19101-7317. Administrative mail such as court documents, forms, etc. will be mailed to Centralized Insolvency Operation, Post Office Box 7346, Philadelphia, PA 19101-7346.

  2. Local Addresses. From a standpoint of practicality, some mail should continue to be mailed to local Field Insolvency addresses. However, mail better handled at the Centralized Insolvency Operation (CIO) and received at a Field office should be faxed (if "expedite" ) or sent by overnight courier to the CIO street address: 2970 Market St., Philadelphia, PA 19104. (See IRM 5.9.11.2(3), Expedite Mail for CIO.)

5.9.11.2  (10-15-2010)
Field Insolvency Mail

  1. Local Mail Receipt. Mail received by Field Insolvency offices must be date stamped upon receipt. When multiple documents are received in one envelope, the front page of each document must be stamped individually. Assignment of mail opening, stamping, sorting and distribution is determined by local Insolvency management.

  2. Mail Meant for CIO. Mail that may be received in the Field, but normally worked by Centralized Insolvency includes the following:

    • Notices of bankruptcy filings (§ 341 notices)

    • Correspondence on cases assigned to CIO

    • Chapter 13 or 7 trustee payments

    • Documents from courts, Counsel, AUSA, SAUSA, and trustees for cases assigned to CIO

    The nature of these receipts must be reviewed to determine if expedited handling is required.

  3. Expedite Mail for the CIO. Mail to be considered as "expedite" includes:

    • first notices of bankruptcy filings for all chapters

    • Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), for cases assigned to the CIO

    • violations of the automatic stay for cases assigned to the CIO

    • any notice/order/objection naming the Service and giving a deadline to respond for cases assigned to the CIO

    • mail requiring action within 10 calendar days for cases assigned to the CIO

      Note:

      Expedite mail that will eventually be handled by Field Insolvency even though the case is currently residing at the CIO, such as adversary proceedings or Chapter 13 amendments to plans, should be retained and worked by the Field. The Field should reassign the case to the Field's inventory until the issue is resolved, at which time the case can be transferred back to the CIO.

  4. Speciality Mail Received by the Field. A Field Insolvency office may receive mail for a special proceeding being worked by another Field office.

    • Securities Investor Protection Act (SIPA) cases are worked by St. Paul Insolvency for Area West and by Manhattan Insolvency for Area East.

    • All Foreign Bank and Financial Account Reports (FBAR) cases are worked by Los Angeles Insolvency.

    • All Chapter 15, Cross-Border Insolvency cases are worked by the Field Insolvency office in Philadelphia.

    • All FDIC Receivership cases are worked by the Field Insolvency office in Dallas.


    Mail concerning these cases received in other Field Insolvency offices must be forwarded to the appropriate Insolvency office following the expedite procedures in paragraph (5) below.

  5. Expedite Mail Procedures for the Field. When a piece of mail is identified as "expedite, " the assigned Field employee must transmit, on the day of receipt, a copy by fax to a designated CIO liaison. After the fax has been sent, the Field employee must telephone the liaison to advise the CIO a fax has been transmitted that requires immediate attention.

  6. Solicited Mail. Courts are expected to send all notices to the national post office box because it is listed as the Service's address of record for all court generated documents. But local Insolvency caseworkers should ask debtors, trustees, and debtors-in-possession involved with Chapter 9, 11, 12, and 15 cases to mail correspondence directly to the local office address. If mail from those sources, other than payments, is received at the CIO, it will be forwarded to the appropriate Field Insolvency office.

  7. Mail Forwarded from the CIO. When CIO tax examiners forward mail to Field Insolvency, and the Field determines no action is needed on the correspondence, the receiving caseworker must annotate in the AIS history the correspondence has been received and no actions were taken. Then, the unnecessary correspondence should be placed in classified waste. The mail should not be returned to the CIO unless the CIO has a demonstrable need to work that specific piece of correspondence. If that is the case, the Field caseworker must explain in the history why that correspondence requires CIO action.

  8. Original Returns. If appropriate, Field Insolvency should request debtors to mail original prepetition tax returns directly to the local Insolvency office address. In cases where multiple returns are received in a single envelope, a received date must be stamped on the front page of each return. The left margin of the first sheet of the original returns should be annotated with "TC 599 69." Within one business day of receipt, the return along with any attached payment must be sent to the delegated Campus for processing. Form 3210 must accompany the returns and remittances annotating:

    • the volume and return type(s) (e.g., 1040, 941, 1065)

    • the TIN(s)

    • the dollar amount(s) of the check(s)

    Note:

    If an Insolvency caseworker cannot review a return before it is sent for processing, photocopies should be made for later review.

  9. Trustee Payments. Although the Office of the US Trustee has advised trustees of the national address for mailing Chapter 7 and Chapter 13 payments, some Chapter 7 or Chapter 13 trustee payments may be sent to local offices in error. After being date stamped, these misdirected checks from trustees should be overnighted to the CIO Payment Posting Unit using Form 3210. For trustee checks Form 3210 must list the check(s) received from the trustee(s) by check number and the trustee's last name. The checks must be sent to Centralized Insolvency Operation, 2970 Market St., Philadelphia, PA 19104.

    Note:

    Chapter 11 and 12 checks should be posted by the Field Insolvency office assigned to the cases and forwarded to the Remittance Processing Units in the appropriate Campuses. (See IRM 5.9.15, Payments in Bankruptcy.)

5.9.11.3  (10-15-2010)
Centralized Insolvency Operations Mail Processing

  1. Mail Receipts. Insolvency mail received at the CIO consists of letters, court documents, correspondence, plans, forms, payments and other communications. CIO tax examiners sort and distribute the administrative receipts to either the appropriate CIO units or Field Insolvency groups. All mail concerning Chapters 9, 11, 12, or 15, with the exception of 341 notices, is sent to the appropriate Field Insolvency offices regardless of the nature of the mail.

  2. Live Checks. " Live" checks (those that are negotiable) are not to leave the Campus Support function of the mail room. If a live check (not a photocopy) is received outside of the Campus Support function, it must be returned to the mail room immediately. Bankruptcy payments remitted by the bankruptcy estate and received by Centralized Insolvency will be processed at the Campus site regardless of chapter type. Procedures for advising Field Insolvency caseworkers of Chapter 11, Chapter 12, and Chapter 15 payments received and posted at the CIO can be found in IRM 5.9.15 Payments in Bankruptcy.

5.9.11.3.1  (10-15-2010)
Administrative Mail

  1. Mail Receipt. The CIO clerical units receive mail based on a daily schedule set by the Campus Support function. Mail received for Insolvency is extracted by Campus Support. Insolvency mail tax examiners must date stamp the front page of each document received in the Centralized site.

  2. Tax Returns. Original tax returns are sometimes delivered through Insolvency mail. In cases where multiple returns are received in a single envelope, the Insolvency mail tax examiners must ensure a received date is stamped on the front page of each return. Original returns involving all bankruptcy chapters (except Chapter 7 No Asset) must be photocopied by the mail unit. CIO tax examiners must input TC 599 cc 69 on the appropriate master file tax (MFT) and tax period using FRM49 to indicate an original return has been received. After the photocopies are made and the TC 599s are input, the returns must be reviewed by the CIO tax examiners to identify those that are considered "statute imminent returns" by referring to the Statute Alert issued for Campus processing. CIO management will establish local procedures for processing statute imminent returns received by taxpayers in bankruptcy. IRM 21.8.1.1.15.3,Statute Year Claims, and IRM 25.6.1.9.9.2, After Hours & Imminent Assessments, provide information for addressing statute imminent returns. Returns not meeting the statute imminent return criteria must be forwarded to the appropriate Campus for processing. The photocopies will be sent by fax or overnight mail to the Field specialist currently assigned the case.

  3. Transmittal Required. When moving mail out of the clerical unit to Insolvency Field groups or to other CIO units, mail tax examiners must prepare Form 3210, Document Transmittal , to accompany the referenced mail item(s).

  4. Types of Mail. Administrative mail is classified into the following categories:

    1. Time Sensitive Mail. Mail setting a deadline date for an IRS response within ten calendar days is considered time sensitive and must be given expedited handling.

    2. Routine Insolvency Mail. Routine mail gives notice of a case action, but does not require an immediate response or may not require any response from the Service. It may be routine mail requiring further processing or routine mail requiring no further processing.

    3. Direct to Classified Waste. This is bankruptcy mail that has no bearing on the Service's handling of a case. ( Exhibit 5.9.11-2)

    4. Non-Insolvency Mail. Misrouted mail is correspondence that does not belong to Insolvency.

5.9.11.3.2  (10-15-2010)
Time Sensitive Mail

  1. Identifying Time Sensitive Mail. For Insolvency's purposes the definition of "time sensitive" mail is documents and letters requiring IRS action of some kind within ten calendar days. Examples of mail that can be time sensitive include the following:

    • Objection to proof of claim

    • Notice of levy

    • Notice of lien

    • Notice of hearing to waive 341 meeting of creditors

    • Motion to sell property free and clear of liens

    • Notice of emergency hearing (involving IRS)

    • Adversary proceeding (involving IRS)

    • Notice of summons and complaint (involving IRS)

    • Automatic stay violations

    • Any notice/order/objection naming IRS and giving a deadline to respond

    • Motion for a cash collateral agreement

    • Notice of § 341 hearing (and case not loaded onto AIS)

    • Urgent correspondence from attorneys, Area Counsel, or other interested parties

    • FBAR correspondence (to be forwarded to Los Angeles Insolvency)

  2. Specialty Mail for Field Insolvency. In addition to bankruptcies, the Field Insolvency operation handles receiverships, assignments for the benefit of creditors, FBAR bankruptcies, and SIPA proceedings. When the CIO receives correspondence on any of these issues, that mail must be processed using time sensitive procedures.

    1. Receiverships and Assignments. All mail regarding receiverships and assignments for the benefit of creditors must be forwarded to the local Field Insolvency office handling that court's jurisdiction.

    2. SIPA Procedures. All mail concerning SIPA proceedings for jurisdictions in Insolvency Area East must be forwarded to the Manhattan Insolvency office. All mail concerning SIPA proceedings for jurisdictions in Insolvency Area West must be forwarded to the St. Paul Insolvency office.

    3. FBAR Correspondence. All FBAR mail must be forwarded to the Los Angeles office for processing.

      Note:

      Specialty mail may be forwarded by scanning the document(s) and E-mailing the scans to the appropriate office.

  3. Processing Time Sensitive Mail. If the mail is time sensitive, the mail tax examiner must query the case on the Automated Insolvency System (AIS) or the Integrated Data Retrieval System (IDRS) to determine where and to whom the case is assigned. (See Exhibit 5.9.11-1.)

  4. AIS Research. When the case appears on the AIS screen, the name and docket number must match the debtor name and the docket number on the notice. The state in which the bankruptcy was filed can help identify the correct case. The court jurisdiction code within a state (e.g., ILN for Illinois North) may also be helpful.

  5. Advising Field Insolvency. Within two workdays of receipt, the mail tax examiner must advise Field Insolvency of the notice. Methods of advice may include:

    • transmission of a secure E-mail to a designated Field group E-mail box with a "read receipt" request

    • sending a copy of the notice via overnight delivery to the Field caseworker assigned the case

      Note:

      Managerial approval is required for overnight shipping.

    • faxing a copy to the Field caseworker or group secretary, preceded by a phone call to advise the office of the fax


    The preferred method for time sensitive communication will be via E-mail. A copy of the E-mail will be retained for 60 days. If an Out of Office (OOO) response is received, the original message will be forwarded to the individual designated in the OOO message. No action will be taken to confirm the receipt of information submitted via E-mail. It will be assumed the employee is receiving messages unless an OOO message is received.

  6. Documentation. The mail tax examiner must document the AIS case history briefly with the nature of the time sensitive mail and the actions taken.

  7. Assigned to Campus. If the case is assigned to a Centralized Insolvency unit, the tax examiner must identify and sort by team/assignee and follow approved methods of intra-Campus delivery to the appropriate team lead. The time sensitive mail must be delivered to the proper CIO unit within two workdays of receipt.

5.9.11.3.3  (03-01-2007)
Routine Insolvency Mail

  1. Routine Mail. Routine mail does not require an immediate IRS response, or it may not require an IRS response at all. Routine mail can be a motion, notice, or order advising the Service of an action. This type of mail may include:

    • order of dismissal

    • order of discharge

    • order of conversion

    • notice of possible dividend

    • other routine notice

    • photocopy of an Insolvency check

    • acknowledgement of receipt of a proof of claim

  2. Routine Mail and AIS Action. In processing routine mail, the tax examiner must determine if AIS processing is required by the clerical unit, such as the input of dismissal or conversion dates. In cases where AIS data must be input, the tax examiner must query the case referenced in the correspondence on AIS. ( Exhibit 5.9.11-1) After the tax examiner has verified that the name, taxpayer identification number (TIN), and docket number on the notice match the name on the AIS screen, (s)he must document the type of notice received and what action, if any, is being taken.

5.9.11.3.3.1  (10-15-2010)
Routine Notice Requiring Further Processing

  1. Further Processing Required. Routine notices requiring further processing can include the following:

    • Original tax returns (See IRM 5.9.11.3.1(2).)

    • Photocopies of tax returns

    • Order vacating/revoking/rescinding or terminating the discharge

    • Order reinstating/revoking or rescinding a dismissal

    • Notice to file a claim

    • IRS Form 4442, Inquiry Referral

    • Any motion or order mentioning IRS

    • Copy of an amended plan (send to the Field)

    • Copy of a Chapter 11 disclosure statement (send to the Field)

    • Copy of a bankruptcy petition and case not loaded on AIS

    • Trustee's final report and account (except Chapter 7N and Chapter 13)

    • Motion to amend or modify a confirmed plan (They must be forwarded to Field Insolvency.)

    • Order establishing a deadline to object

    • Area Counsel responses/requests

    • Correspondence from debtors, trustees or attorneys

    • Any correspondence addressed to a specific Insolvency employee

    • Case reassignment (changing judges)

    • Change of venue

  2. Disposition. When mail is a routine notice or order (not time sensitive) requiring further processing and the tax examiner accesses the case on AIS, if the case is assigned to Field Insolvency, the tax examiner must annotate the standard employee identification (SEID) designation in the upper right hand corner of the document before forwarding it to Field Insolvency. The tax examiner must prepare Form 3210, Document Transmittal, to accompany mail leaving the clerical unit. AIS documentation of receipt of this mail by CIO tax examiners is not required.

  3. Timeframe. The CIO must forward routine mail to Field Insolvency offices, if forwarding is necessary, at least twice weekly via the US Postal Service priority mail or an overnight courier service. The choice is up to the discretion of CIO management.

5.9.11.3.3.2  (10-15-2010)
Routine Notice Requiring No Further Processing

  1. No Further Processing Required. Routine notices received from the bankruptcy court requiring no further processing may include the following:

    • Motion or application to employ another attorney/accountant

    • Duplicate notices of any kind

    • Copy of a petition and the case is already loaded on AIS

      Note:

      Chapter type and petition date should be verified with AIS data before discarding potentially duplicate petitions.

    • Order approving reaffirmation agreement

    • Order granting a motion to amend schedules

    • Notice pursuant to Rule 2002

    • Motion to abandon property (unless Notice of Federal Tax Lien filed)

    • Payment of priority claim wages

  2. Review and Document. If the mail is a routine notice or order requiring no further processing, the tax examiner should query the case on AIS and document the case regarding the type of notice received unless the notice is a duplication of an earlier notice. The documentation should be brief. After documentation, the mail can be discarded in classified waste.

    Exception:

    Items on the classified waste list ( Exhibit 5.9.11-2) may be disposed of without annotating their receipt in the AIS history.

    Reminder:

    All mail for Chapter 9, 11, or 12 cases, except those items identified on the classified waste list (Exhibit 5.9.11-2), must be forwarded to the appropriate Field Insolvency office via Form 3210. Unless special handling is required on any of these documents, the AIS history need not document the receipt of the correspondence at the CIO.

5.9.11.3.4  (03-01-2007)
Direct to Classified Waste

  1. Direct to Classified Waste. Some mail is sent to the IRS as a matter of course when it has no relevance to Insolvency case processing. This mail can be directed to classified waste without annotating either AIS task-specific screens (such as the proof of claim screen) or the AIS history screen. Exhibit 5.9.11-2 provides a list of notices and documents that are included in this category of mail.

5.9.11.3.5  (10-15-2010)
Inputting Dismissal Dates

  1. Clerical Actions. CIO tax examiners input dismissal dates for all chapters on the AIS entity screen when paper notifications of dismissal are received in the CIO. To input the dismissal date on AIS, the tax examiner must take the following steps.

    STEP ACTION
    1 Access the case on AIS. (See Exhibit 5.9.11-1.)
    2 Review the Taxpayer Screen to determine if a dismissal date is present.
    3 If a dismissal date has been entered or the case has otherwise been closed as no liability or full paid, no action is necessary. The dismissal order should be placed in classified waste unless otherwise directed by the manager.
    4 If no date is present, input the dismissal date, fill in the "Noticed on" field if required, and update the AIS history. These inputs cause the dismissed case to appear on the court closure report, so the technical units or Field Insolvency caseworkers can take the final closing actions. IRM 5.9.18.2(2) lists issues that may need to be resolved before closing a case, some of which pertain to dismissals.

  2. Field Cases. After CIO tax examiners input dismissal dates, paper dismissals for Chapters 9, 11 and 12 are mailed to the Field Insolvency groups assigned the cases.

5.9.11.3.6  (10-15-2010)
Discharge Orders

  1. Clerical Actions on Paper Discharges. If the mail being sorted is an order for discharge, the Insolvency tax examiner must take the following steps.

    STEP ACTION
    1 Access the case on AIS (see Exhibit 5.9.11-1).
    "2" To ensure a discharge is processed correctly, it is extremely important to verify the proper chapter type is listed on AIS. If the chapter type does not match; take action to convert the case on AIS. IRM 5.9.11.3.8.
    3 Review the Taxpayer Screen to determine if a discharge date is present.
    4 If a discharge date has been entered that matches the date on the notice, or the case has otherwise been closed as no liability or full paid, no action is necessary. The order should be placed in classified waste unless otherwise directed by the manager.
    5 If no date is present or if the discharge date on the notice differs from the discharge date on AIS, forward the notice to the assigned technical unit.

5.9.11.3.7  (10-15-2010)
Document Disposition

  1. Distribution. Duplicate correspondence or correspondence cited on the classified waste list requires no AIS history documentation. Receipt of other correspondence must be documented on AIS if it is routine and will be disposed of in classified waste or is correspondence that requires special handling such as time sensitive mail or original tax returns. Tax Examiners do not need to annotate the AIS history concerning routine correspondence being forwarded to Field Insolvency or to other areas of the CIO.

    Reminder:

    All correspondence forwarded outside of the clerical unit working mail must be listed on Form 3210, Document Transmittal.

5.9.11.3.8  (10-15-2010)
Conversion or Dividend

  1. Order of Conversion or Notice of Possible Dividend. Chapter 11, Chapter 12, or Chapter 13 cases may be converted to Chapter 7 Asset or No Asset cases, and Chapter 7 Asset cases may be converted to Chapter 7 No Asset cases. Occasionally a Chapter 7 case is converted to a Chapter 11 proceeding. Most bankruptcy courts open Chapter 7 cases as no asset cases. A Notice of Possible Dividend converts a Chapter 7 No Asset case to a Chapter 7 Asset case. Conversions to a Chapter 7 Asset case may also be identified as "Notice of Assets" or "Notice to File Proof of Claim" . When an Order for Conversion or Notice of Possible Dividend is received, the Insolvency tax examiner must take the following steps.

    STEP ACTION
    1 Access the case on AIS (See Exhibit 5.9.11-1).
    2 Review the Taxpayer Screen to determine if the conversion date is present.
    3 If the correct conversion date is present, place the notice in classified waste.
    4 If no date is present, input the "Court Date" field, the new 341 meeting date, if any, the new bar date, if any, and the chapter to which the case is converted. If the notice does not provide a bar date, input the bar date as 90 days from the 341 meeting date.
    5 If a paper Notice of Conversion is received, review the trustee information to determine if the trustee has been changed. If so, input the new trustee information on AIS. If the previous trustee had requested a refund turnover, remove the "TTEE RFND" from the "Classification" field and annotate actions taken in the AIS history. Check for the appropriate 520 cc. If different, change the closing code on IDRS. Remove the follow up date from the Letter Screen.
    6 If the case is assigned to a Field employee, notify the employee via secured E-mail, fax, or telephone of the conversion.
    7 If necessary, transfer the case to the proper Field or CIO caseworker. (See Exhibits 5.9.5-1 and 5.9.5-2.)
    8 If the case is assigned to the CIO, walk the notice to the CIO team lead or deliver by any other approved method of distribution.
    9 Document the case history.

5.9.11.3.9  (10-15-2010)
Turnover Requests

  1. Refund Credits to Trustees. CIO tax examiners are responsible for inputting trustee turnover information on AIS. If an entity for the debtor has not been established on master file, the mail tax examiner should take the case to the clerical lead to set up a dummy module. The guidance in IRM 5.9.15.5(2), Procedures for Creating New (Dummy) Modules, should be followed to establish an account for the debtor on master file. But if an entity for the debtor is already on master file, the tax examiner will only need to input a TC 520 cc 81 on the debtor's most recent tax period to prevent a systemic refund to the debtor.

  2. Property of the Estate. In Chapter 7 and Chapter 13 cases, prepetition refunds are considered part of the estate. In Chapter 13 cases postpetition refunds are also considered part of the estate if such refunds are committed to the plan or the plan provides that property of the estate does not vest in the debtor until the plan is completed. Procedures for setting up a request for a refund turnover to a Chapter 7 trustee are found in Exhibit 5.9.6-2. Turnover requests for Chapter 13 refund credits are handled similarly. To signal the presence of a trustee turnover request-, on the AIS Taxpayer Screen, the CIO tax examiner must click on "TTEE RFND" from the drop down menu in the "Classification" field.

5.9.11.3.10  (10-15-2010)
Rescission of Trustee Turnover Requests

  1. When a trustee decides that he/she no longer has an interest in the taxpayer's refund, the trustee will notice IRS. The title of the notice may vary from court to court. Some notices may be titled as Vacate Turnover, Reverse Request for Refund, Release the Trustee's Directive for Refund or Order Abandoning Trustee's Interest in Refund. The following actions should be taken when this type of notice is received:

    • Remove "TTEE RFND" from the case classification field on AIS.

    • If the case is a no liability case and the only reason the case was open on AIS was because of the trustee turnover order, input a TC 522 on IDRS to reverse the TC 520. Use the current date as the TC 522 input date and close the case on AIS as "No Liability" using the current date.

    • If the case had an outstanding liability, a discharge was previously received, and the closing actions were completed by ADS as indicated by "RegDiscCmplte-RC" or "SupDiscComplte-SC" in the method of closure field on the Taxpayer Screen on AIS, input the current date in the "On AIS" field on the Taxpayer Screen and close the case on AIS.

    • If the case should remain open because an adjustment is in process and has not been completed, or because the case is open and a claim has been filed, etc., do not reverse the TC 520.

5.9.11.3.11  (10-15-2010)
Non-Insolvency Mail

  1. Misrouted Mail. Mail is sometimes misrouted to the Insolvency mail drop. The tax examiner should query AIS and, if necessary, IDRS to determine the intended destination of the mail. If the mail is non-Insolvency, the tax examiner should make a reasonable attempt to determine the correct mail address and forward it accordingly. If all efforts to locate the proper recipient are fruitless, the tax examiner should return it to Campus Support.

5.9.11.4  (10-15-2010)
Undeliverable (UD) Mail

  1. Returned Mail. Mail sent by the Service to the last address of record or the address provided in the bankruptcy records may be returned to the sender (CIO or Field Insolvency) as undeliverable (UD). The US Postal Service has abbreviations to explain why UD mail is being returned, such as FOE (forwarding order expired) or UAA (undeliverable as addressed). Processing of UD mail depends on the return address of the sender and the nature of the correspondence.

  2. Field Insolvency UD Mail. Field Insolvency necessarily sends some mail to debtors, attorneys, trustees, and third parties giving the local Insolvency location as the return address. When this mail is returned to the local office as UD, depending on the urgency of the mail and local practice, the specialist or advisor receiving the UD mail is responsible for obtaining a correct mailing address for the mail recipient. The AIS history must be updated with the nature of the mail, who was to have received the mail, and if appropriate, what steps were taken to secure a valid address, and if the correspondence was resent to a newly found address. If a determination is made not to pursue a new address, the correspondence should be disposed of in classified waste.

  3. CIO UD Mail. The bulk of correspondence going to debtors has the national post office box for the CIO as the return address. Consequently most UD mail will be received by the CIO. The CIO's processing of UD mail depends on the correspondence being returned.

    1. 1714 Letter. When 1714 letters (notices advising debtors of missing tax returns) are received by the CIO as undeliverable, the CIO mail tax examiner should annotate in the AIS history that the letter has been returned as UD and give enough of the bad address so anyone attempting to mail subsequent correspondence to the debtor will not use the bad address. After the AIS history has been updated, the UD mail should be disposed of in classified waste.

    2. 3927-C Letter. When 3927-C letters (notices advising debtors of postpetition debt and asking for payment) are returned to the CIO as undeliverable, the CIO tax examiner should update the AIS history stating the letter has been returned as UD and give enough of the bad address so subsequent correspondence to the debtor will not be sent to the bad address. After the AIS history has been updated, the UD mail should be disposed of in classified waste. Then the case should be reassigned to the Field for processing in the manner appropriate for that local office.

    3. 3929-C Letter. When 3929-C letters advising debtors to stop making installment agreement payments are returned as UD mail, generally the Chapter 13 plan has not yet been confirmed, and Field Insolvency has control of the case. The CIO tax examiner must update the AIS history stating the letter has been returned as UD and give enough of the bad address so subsequent correspondence will not be sent to the bad address. The Field caseworker must attempt to locate a current address for the debtor, usually by contacting the debtor's attorney. See IRM 5.9.4.17,Installment Agreements and Bankruptcy, to determine when voluntary installment payments can be retained in Chapter 7 cases. After the AIS history has been updated, the UD mail should be disposed of in classified waste.

      Reminder:

      Field Insolvency specialists are responsible for resolving stay violations on cases assigned to them.

Exhibit 5.9.11-1 
Accessing a Case on AIS

STEP ACTION
1 Sign onto the NT network.
2 Double click on the AIS-Oracle icon.
3 At the bottom of the screen that appears, input logon and password and click on "Connect" or hit "Enter" on the computer key pad.
4 The AIS "Welcome" screen will appear with a menu on the left-hand side.
5 Select the "Case Files" tab from the menu to bring up the Taxpayer Screen.
6 Click on the "Query" button on the Taxpayer Screen tool bar.
7 Several methods may be used to access the correct case. One of the most effective methods is to query the "AIS Case Number" field using the numeric case number followed by the percent sign (%) and refining the query further by including the taxpayer's last name in the "Last Name" field followed by the percent sign (%) on the Taxpayer Screen on AIS. Example: 06%12345% and Taxpayer%. Another way to query a corporate entity is by using the name of the corporation followed by the percent sign (%) in the "Last Name" field on the Taxpayer Screen and the initials for the state where the debtor is located followed by the percent sign (%) in the "Court" field. Example: ABC Corporation% and GA%.

Note:

Completing as many fields on the Taxpayer Screen as possible better targets the search for the proper case.
8 Click on "Execute" on the Taxpayer Screen tool bar.
9 If the correct case does not immediately appear, click on "Next" on the tool bar until the case in question is displayed.
10 Once the correct debtor is identified, you may select the desired screen by clicking on the tabs immediately beneath the tool bar.

Exhibit 5.9.11-2 
Mail Direct to Classified Waste

CIO employees may discard the following categories of mail for Chapter 7 and Chapter 13 cases without annotating their receipt on AIS. If the employee is unsure if a notice can be placed into classified waste, the employee should consult with their lead or their manager.

  • acknowledgement of proof of claim receipt

  • correspondence for cases closed as no liability except for trustee turnover requests

  • trustee report of confirmation

  • motion to amend order requiring strict compliance

  • motion to convert

  • motion to discharge

  • motion to incur debt

  • notice of intent to pay claims

  • trustee motion to allow claims determination and designation of unsecured dividend

  • administrative order allowing claims

  • order granting motion to retain excess insurance proceeds

  • notice of report on claims and setting bar date for objections

  • order for payment of fees in installments

  • order determining debtor's compliance with filing requirements

  • order establishing 1) duties of trustee and debtor; 2) plan confirmation procedures; 3) requirements for debtor's compliance; 4) procedures for allowance of administrative expenses; and 5) procedures for adequate protection payments

  • unsworn declaration under penalty of perjury

  • trustee final report

  • order to add creditor, not IRS

  • 341 Meeting minutes

  • notice of no distribution on 7 No Assets

  • certificate of service

  • mailing matrix

  • order for attorneys to be paid additional expenses

  • order authorizing appointment of accountants

  • notice of trustee intent to sell personal property

  • notice of filing final report

  • order directed to debtor's employer

  • notice requesting interim counsel

  • trustee application to settle disputed matter not including IRS

  • blank proofs of claim (with or without discharge managers' names)

  • notification that motion/order filed electronically

  • trustee report of receipts

  • motion to reduce percentage paid to unsecured general creditors

  • trustee interim report and account and notice of objection deadline in completed case and ready for discharge

  • order to show cause not involving the IRS

  • notice of plan completion, final account and eligibility of debtors for discharge

  • Chapter 13 case management order

  • motion to amend confirmation order to provide for correct arrearage

  • notice of consummation of Chapter 13 plan

  • trustee notice to debtor and creditors of filed claims, classification, and proposed distribution

  • notice of hearing for payment of attorney fees

  • motion for disbursement of debtor settlement proceeds

  • final decree

  • notice of discharge on a case closed as no liability (NL)

  • notice of dismissal on a case closed as no liability (NL)

  • notice of vacated discharge on a case closed as no liability (NL)

  • notice of reinstatement after discharge on a case closed as no liability (NL)

  • notice to creditors and others of provisions

  • motion to advance mortgage

  • motion to forgive missed payments

  • motion to add missed payments to mortgage arrearage

  • motion and notice to allow claims

  • motion to borrow money to purchase a vehicle

  • declaration of employee of trustee office

  • motion regarding automatic stay not specifically mentioning the IRS

  • order returning documents to debtor

  • motion to permit postpetition financing

  • motion to suspend payments

  • motion to substitute attorney

  • motion to dismiss

  • trustee recommendations concerning claims

  • trustee opposition/objection to confirmation of plan

  • conditional dismissals

  • original confirmation orders

  • notice of an original confirmation hearing

  • original plans

  • original schedules

  • amended or modified mailing matrix

  • trustee objection to exemptions

  • Notice of reinstatement after dismissal on a case closed as NL

  • motion regarding automatic stay

  • amended motion to extend the automatic stay

  • notice of Chapter 13 plan

  • notice of trustee filing a report of no distribution

  • notice of trustee's final report and application for compensation

  • order authorizing trustee to employ an attorney to represent debtor and bankruptcy estate

  • order denying motion to extend automatic stay

  • order denying confirmation

  • order for case management of a Chapter 13 case

  • order granting motion to excuse debtor

  • amended order to the employer to pay trustee

  • transfer of claim other than for security

CIO employees may discard the following categories of mail for Chapter 9, 11, and 12 cases without annotating their receipt on AIS:

  • duplicate 341 notices where the 341 date is already present on AIS

  • original 341 notices after the notice has been added to AIS

  • original plans

  • schedules

  • confirmation orders

  • all documents on closed cases with the exception of an order to vacate the dismissal or discharge


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