Part 5. Collecting Process

Chapter 12. Federal Tax Liens

Section 6. Procedures for Lien Processing

5.12.6  Procedures for Lien Processing

5.12.6.1  (07-16-2010)
Management and Responsibility

  1. Collection Policy has overall responsibility for the lien program and the Automated Lien System (ALS).

    1. Forward requests for "Omni" (universal) access to the ALS database to Collection Policy, Technical, for approval.

    2. The request will contain the reason Omni access is required and when access is needed. Requests may be submitted via e-mail.

    3. Collection Policy will respond to requests within seven calendar days.

    4. Authorization to add Omni users will be provided to ALS programmers.

  2. Based on policies established by Collection Policy, Centralized Case Processing and the Centralized Lien Unit (CLU) are responsible for:

    1. Processing requests for and maintaining Notices of Federal Tax Lien (NFTL) generated by the Automated Lien System (ALS).

    2. Processing requests submitted by Insolvency and Advisory, Manually Monitored Offer-in-Compromise, and Innocent Spouse functions for partial withdrawals, partial releases, nominee liens and estate tax liens (See IRM 5.5.8 for estate tax lien processing procedures).

    3. Issuing lien certificates related to NFTLs, such as releases and withdrawals, generated by the system.

    4. Facilitating payment of recording fees to the appropriate recording official.

    5. Administration of the ALS database, including but not limited to, adding and removing users, resolving exception reports, providing assistance to other functional users.

    6. Responding to written and telephone requests for lien payoffs and releases.

    7. Mailing all documents timely.

    8. Liaison with internal and external stakeholders.

5.12.6.1.1  (07-16-2010)
Managing the Lien Process

  1. Managing the lien process encompasses many duties including reviewing lien documents for completeness such as ensuring there is name, address, balance due, and tax period information on each NFTL.

  2. Ensuring the timely processing of lien documents including:

    1. Form 668(Y)(c), Notice of Federal Tax Lien,

    2. Form 668Z, Certificate of Release of Federal Tax Lien,

    3. Form 10916(c), Certificate of Withdrawal of Notice of Federal Tax Lien,

    4. Form 12474, Revocation of Certificate of Release of Notice of Federal Tax Lien,

    5. Form 12474A, Revocation of Certificate of Release of Notice of Federal Tax Lien (Self-Releasing),

    6. NMF lien releases,

    7. Form 668H, Estate Tax Lien,

    8. Form 668J, Estate Tax Lien.

  3. Inputting court recording data timely.

  4. Responding to requests for information on lien documents.

  5. Providing copies of lien documents to employees and taxpayers.

  6. Ensuring timely resolution of ALS generated reports.

    1. MF SATMOD Reject Report

    2. NMF SATMOD Reject Entity Report

    3. TC 360 Reject Report

    4. NMF TC 360 Report

    5. Lost Lien Report

    6. Potential Refile Report (CLU does not resolve this report, but will provide copies for other functions.)

    7. Missing POD Listing

    8. ACS/ICS Reject Report

    9. Nullified Distribution Report (Unpostables)

      Note:

      This report is not generated by ALS. CLU employees use Control D to locate unpostable TC 582s for resolution.

  7. Establishing positive lines of communication with internal and external customers. For example:

    1. establishing a liaison between the Automated Call Site (ACS) and the Centralized Lien Unit to enable effective and efficient resolution of problems.

    2. contacting Area Counsel and Area Governmental Liaison staff.

    3. practitioners

    4. enrolled agents

    5. compliance officers, i.e., revenue officers, insolvency technicians, Advisors, OIC specialists, tax examiners, etc.

  8. Establishing a lien quality review process for the creation of liens.

    1. Is the taxpayer's name (first and last) correct?

    2. Is the city, state and zip code correct?

    3. Is the recording information, i.e., county and state, correct?

    4. Has the tax period information been added?

    5. Is there a total balance due at the bottom of Form 668(Y)(c)?

    6. If a low dollar lien, was the amount verified on IDRS.

  9. Establishing quality review procedures for processing lien documents prior to mailing, to determine if the following actions were taken:

    1. Were office support vouchers attached?

    2. Were documents signed?

    3. Were document signatures legible and within the signature space?

    4. Were all documents accounted for?

    5. Had any documents been removed?

    6. Was appropriate documentation attached?

    7. Was the billing voucher annotated and documentation attached?

    8. Did all releases have recording information listed?

    9. Were two copies sent to those recording offices that require it?

    10. Were return envelopes attached when required?

    11. Were envelopes prepared for the correct county?

    12. Were all documents aligned with the correct billing support voucher?

  10. Quality review processes should also be established for payoff and telephone assistance. The review process and methodology will be developed by Compliance Services, Case Processing.

  11. Certifying payment of recording fees.

5.12.6.1.2  (07-16-2010)
Managing Work Processed During Dead Cycles

  1. Master file updates its systems during the middle of December through the first week of January, each year. This period is known as the " dead cycles" . During this time, master file does not provide Status 12 extracts or DIAL downloads to ALS.

  2. Systemic releases do not occur during dead cycles.

  3. Lien releases can be manually input to ALS during this time.

  4. Document processing will continue in accordance with established time frames.

  5. Certificates of release must be processed within the established 30 day time frame. Therefore, when master file is back on line, immediate processing must occur, including printing and mailing of certificates of release.

  6. Transaction codes 582 and 360 for work processed during this time period will be posted when master file resumes processing.

5.12.6.2  (07-16-2010)
Functional Coordinator Responsibilities

  1. The ALS Functional Coordinator is located in the Field Office Resource Team (FORT) at the Cincinnati Campus. The responsibilities of the ALS Functional Coordinator include, but are not limited to:

    1. Establishing permissions and menu groups for users.

    2. Generating and providing reports to the appropriate management official.

    3. Updating local files and/or permissions.

    4. Serving as a resource person for users experiencing problems, responding to questions, etc.

    5. Periodically reviewing all ALS permissions to ensure menu accuracy.

  2. Contact the coordinator when you require assistance with the ALS, including personal access.

    Note:

    The ALS Coordinator resets the ALS secondary password only. UNIX login passwords are reset through the MITS Help Desk.

  3. For assistance with POD addresses, group numbers, or county/zip code matches, contact the IQA, ICS/Entity Quality Analyst who will coordinate the changes with the Collection Policy Analyst or ALS Functional Coordinator.

5.12.6.2.1  (07-16-2010)
ALS Permissions

  1. While Collection Policy governs most aspects of the ALS system, the ALS Functional Coordinator ensures permissions are accurate and current using information provided by functional managers. NOTE: See IRM 5.12.6.1(1) for employees requesting Omni access.

  2. An On-line (OL) 5081 (in rare instances - paper Form 5081) must be approved by the appropriate manager. This is used to request user additions, name changes, or deletions. If a paper Form 5081 is submitted, ensure all required signatures have been obtained prior to forwarding the form to the system administrator and maintain a copy of the paper form.

  3. The OL5081 for new users should indicate the types of permissions or capabilities the employee requires; i.e., research, create, approval, temporary access vs. permanent ′→access, etc. Subsequent changes affecting the user's account, with the exception of a name change or deletion, may be accomplished via e-mail, memorandum, or OL5081 forwarded by the manager or his designee to the functional coordinator. Functional coordinators names and phone numbers are located on SERP/Automated Lien System, Who/Where.

    Note:

    Deleting employees from ALS should not occur without the functional managers approval, including those received from systems administrators.

  4. Requests to have a UNIX login reset will be made through the MITS Help Desk. For those users with increased permissions on ALS, ask that your secondary password reset be sent to the functional coordinator by secure e-mail and that the secure email include the user's name and ALS login.

  5. Changes affecting the user's account, such as requests for additional permissions or removal of permissions, will be submitted via OL5081 after approval by the manager or his designee.

    Note:

    Deleting employees from ALS, require the functional manager′s approval including those requests received from systems administrators.

  6. Updates to user profiles and issuance of passwords must be made by CLU within three (3) days of receipt of request.

  7. The functional coordinator works with the employee's manager and/or the Policy Lien Program Analyst, when necessary, to ensure proper permissions are given. See Exhibit 5.12.6-1, ALS Permissions Chart

  8. Functional managers will create and provide an IDRS TSIGN number for all employees added to ALS. (See ADP Handbook, Section 11, Collection, for guidance.) Employees cannot be added to ALS without a TSIGN. ALS uses the TSIGN number to associate lien requestor (and approver) information with lien documents. Therefore, ensure employee Integrated Data Retrieval System (IDRS) TSIGN numbers are included on ALS access requests. ALS access requests cannot be processed unless employee TSIGNs are provided.

    Note:

    ALS programmers and Compliance Policy staff do not provide TSIGNs for ALS use. Occasionally, the ALS Functional Coordinator will assist functional managers.

  9. When removing or requesting employee permissions, provide the following employee information:

    1. function, i.e., MOIC, COIC, CIO, etc.,

    2. mailing address,

    3. job title,

    4. telephone number, and

    5. employee identification number.

  10. Use the OL5081 process to remove retired or resigned employees from the database immediately upon notification.

5.12.6.3  (07-16-2010)
Creating the Notice of Federal Tax Lien, Form 668(Y)(c)

  1. Notices of Federal Tax Lien (except estate tax liens) will be filed through the Automated Lien System (ALS).

  2. Follow instructions in the ALS User Guide to create the lien when using the ALS. The following information is required:

    1. Entity information: taxpayer identification number, name and address, as well as the name control.

      Note:

      ALS systemically partially redacts SSNs on original lien filing requests issued after January 2006. Releases, withdrawals, revocations, etc., associated with NFTLs issued prior to January 2006 were issued with full SSNs. Effective January 2008, SSNs were partially redacted (xxx-xx-1234) on all documents sent to recording offices, including those where the original document was recorded with the full SSN.

      Note:

      ALS will reject, to the originator, any NFTL with an incomplete address. DO NOT issue NFTLs with SSNs or "Local " in the street address line, numbers (e.g., 12222) without a street name; a blank street name, etc.

      Note:

      ICS users should update any incomplete address on ICS prior to requesting the lien through ICS. Revenue officers must check their ICS notifications daily for rejects. Rejects must be resolved and the NFTL reinput. Failure to follow these procedures will result in a NFTL not being filed

    2. Tax assessment information: MFT, tax period, assessment date, taxpayer identification number, last date for refiling, and the unpaid balance of assessment.

      Note:

      ALS rejects any lien request that does not have a current valid assessment date or is requested less than 10 days after assessment. Revenue officers must not use projected assessment dates when requesting NFTL. NFTL requests less than 10 days after assessment must go through jeopardy lien processing because the statutory lien does not arise until 10 days after assessment. ROs need to check their ICS notifications daily for rejects. Rejects must be resolved and the NFTL reinput. Failure to follow these procedures will result in a NFTL not being filed.

    3. Recording Office information: place of filing and the recording office address.

      Note:

      If a NFTL is rejected by the recording office, CLU will secure e-mail the originator, attach a copy of the rejected document and explain the reason for the rejection.

    4. Administrative information: employee name, assignment number, phone number and location.

  3. Requests for filing and refiling NFTLs will be submitted by secure e-mail to the Centralized Lien Unit (CLU), if the user does not have ICS access, Create, and/or ALS Refile permissions. See Exhibit 5.12.6-2 , Request for Filing or Refiling a Notice of Federal Tax Lien.

  4. CLU will complete requests received from revenue officers. These requests should be rare and restricted to instances where the revenue officer does not have access to ICS or the lien cannot be filed through ICS, i.e., locked out of computer, computer broken, etc. Requests for lien filings should be rare from Advisory and Insolvency because of existing ALS permissions to create liens.

    Note:

    Amended and nominee/alter ego/transferee liens may require special handling, such as the suppression of the collection due process notice. Sufficient information will be input to ALS to ensure the appropriate CDP notice is generated.

5.12.6.3.1  (07-16-2010)
Requesting NFTLs Using Form 12636

  1. Generally liens are systemically created on ALS from ICS or ACS data uploads. Employees in the walk-in, correspondence, Appeals, Examination (Innocent Spouse examiners) and toll free areas do not have ALS access. Other employees may be able to research lien information using ALS but do not have the capability to create documents.

  2. Form12636 will be secure e-mailed to CLU for preparation of NFTLs by employees without ALS access. The information outlined in 5.12.6.3(2) will be provided in all requests.

    Note:

    This is a fillable form located on the Intranet and may be saved to your computer for future use. There is also an ICS Template that can be used by ICS users.

  3. Prior to submission the requesting employee will review Form 12636 to determine if all the information required to prepare the NFTL, including name and telephone number of the contact person for generation of the CDP notice, has been provided. This information is not available in CLU.

    Note:

    The lien unit may contact the requester for additional information, if necessary.

  4. The employee requesting the NFTL will provide the entity information regarding the spouse, POA, partners, etc.

  5. Requests received by CLU will be input to ALS within 5 business days of receiving the request.

  6. Follow up CDP actions will be ACS Support's responsibility, for employees identified in (1) above.

  7. Employees with ALS access may research ALS using the taxpayer's TIN to determine if the NFTL has been created.

5.12.6.3.2  (07-16-2010)
Manually Prepared NFTLs

  1. In certain exigent circumstances, a NFTL may need to be filed more quickly than it can be using the systemic process. These situations necessitate the NFTL being manually prepared and personally delivered to the recording office.

  2. As a general rule, these manual preparations fall under two categories.

    1. Requests by revenue officers who are personally carrying the NFTL to the recorders.

    2. Requests by employees without access to the ALS.

  3. Manually prepared NFTLs will be kept to a minimum. The information described in IRM 5.12.6.3 will be used to prepare the NFTL.

    Note:

    Remember to redact the SSNs when appropriate.

5.12.6.3.2.1  (07-16-2010)
Manually Prepared NFTLs Without ICS

  1. Employees who need to prepare a NFTL for immediate recordation but do not have the ICS process in 5.12.3.2.2 available to them will generate a SLID on ALS or will contact CLU to secure a SLID.

  2. The employee will create the lien on ALS by inputting all required information. If the employee does not have ALS input capabilities, secure e-mail Form 12636 to CLU requesting that a SLID be issued immediately.

    Note:

    Form 12636 is a fillable form, located on the Intranet (or an ICS macro) and can be downloaded and saved to your computer for future use.

    Note:

    Request that the printing of the NFTL be suppressed before the SLID is generated. If printing is not suppressed, a duplicate lien will be systemically generated.

    Note:

    CDP notices are systemically generated by ALS for ICS manually prepared liens.

  3. Type the lien information, including the serial number obtained from ALS, into Form 668(Y)(c).

    Note:

    Only serial identification (SLID) numbers generated by ALS will be used on NFTLs. Employees will not create (make-up) SLID numbers. NFTLs issued without systemically generated numbers will not be released by ALS.

  4. Print the NFTL on your local printer.

  5. Make arrangements with a field employee, to have the NFTL hand carried to the recording office. Recording fees are to be paid by the employee and added to the employee's travel voucher for reimbursement UNLESS the filing fee exceeds normal costs AND the recorder accepts the billing support voucher (Form 3982). If the recorder accepts the Form 3982, instruct the recorder to fax the billing voucher to the CLU for payment.

    Note:

    The majority of recorders are paid by Electronic Fund Transfers (EFT). CLU, in the past, arranged with some recording offices to allow ROs to add NFTL fees to the monthly billing invoice. You will need to speak with the CLU team responsible for your area to determine if this method is still available. If so, provide the recording official with Form 3982, Billing Support for Lien and Certificate Fees.

  6. After filing, the stamped document will be returned to the originator, who is responsible for inputting recording data on ALS within 4 calendar days of filing the NFTL. If the employee does not have ALS input capabilities, the complete recording information must be sent via secure e-mail to CLU with the request that it be input to ALS.

    Note:

    If recording information is not input to ALS, timely lien release may not occur.

5.12.6.3.2.2  (07-16-2010)
Manually Prepared NFTLs Using ICS

  1. Revenue officers hand carrying NFTLs for immediate recordation will select the manual ICS lien process on the ICS system to receive a SLID notification via ICS to prepare NFTLs prior to requesting the NFTL.

    Note:

    CDP notices are systemically generated by ALS for ICS manually prepared liens.

  2. Type the lien information, including serial number obtained from ICS, into the into the ICS template, Form 668(Y)(c).

    Note:

    Only serial lien identification (SLID) numbers generated by ICS or ALS will be used on NFTLs. Revenue officers will not create (make-up) SLID numbers. NFTLs issued without systemically generated numbers will not be released by ALS. Refer to the ICS User Guide for assistance or contact your manager.

  3. Print the ICS template NFTL on your local printer.

  4. When hand carried to the recording office, recording fees are to be paid by the employee and added to the employee's travel voucher for reimbursement UNLESS the filing fee exceeds normal costs AND the recorder accepts the billing support voucher (Form 3982). If the recorder accepts the Form 3982, instruct the recorder to fax the billing voucher to the CLU for payment.

    Note:

    The majority of recorders are paid by Electronic Fund Transfers (EFT). CLU, in the past, arranged with some recording offices to allow ROs to add NFTL fees to the monthly billing invoice. You will need to speak with the CLU team responsible for your area to determine if this method is still available. If so, provide the recording official with Form 3982, Billing Support for Lien and Certificate Fees.

  5. Revenue officers are responsible for inputting recording data within 4 calendar days of filing the NFTL. If the RO does not have ALS input capabilities, the complete recording information (including the taxpayer's name and TIN or the NFTL SLID) must be secure e-mailed to CLU for ALS input.

    Note:

    If recording data is not input to ALS, timely lien release may not occur.

5.12.6.3.2.3  (07-16-2010)
Filing NFTLs in Jeopardy Situations

  1. Revenue officers will request a SLID from the CCP FORT when preparing NFTLs in jeopardy situations. See IRM 5.1.4 for more information on jeopardy situations.

  2. Create the NFTL using the ICS template. When there is no master file account, hold the lien until the account is established.

  3. Hand carry the NFTL to the recording office the same day you receive the SLID; pay the recording fee, obtain the recording data.

  4. Retain the recorded NFTL.

  5. Monitor master file to determine when the account has been established. Once the account has been established, forward the NFTL with the recording information to the FORT to complete ALS input and to post the TC 582 and TC 360.

  6. If the lien filing is in a different area, initiate an OI with the manager's approval. Determine the RO group working that area and forward the request attached to Form 3210 for NFTL filing.

  7. Note on the front of the OI that this is a jeopardy situation and that immediate recordation is required.

  8. The RO group receiving the OI will hand carry the NFTL to the recording office.

  9. The acknowledgement copy of the 3210 with a copy of the recorded document will immediately be returned to the originating office.

  10. The originating revenue officer will follow procedures in (4) and (5) above to complete the process.

5.12.6.3.2.4  (07-16-2010)
Preparing NFTLs Filed After Original CSED (NAOC)

  1. A "Portland" lien (hereafter known as the NFTL After Original CSED (NAOC)) is a NFTL filed after the original 10 year collection statute has expired. CSED can be extended due to an extension or suspension. For example, the tax liability was assessed 10/20/1990. The taxpayer filed bankruptcy which suspended the statute and a new CSED calculation posted to IDRS of 12/20/2005. The NFTL was filed in 2002. Since the filing occurred after the original 10 year statute would have expired, the system will prompt for a date and if nothing is entered places N/A or blank in column (e), the refile by date field.

  2. When inputting these liens to ALS, the system will ask for the new CSED. Enter the master file last CSED date or, if the CSED is suspended, a date that is at least 20 years after the assessment date.

    Note:

    When completing a request form, it is essential to show the updated CSED for each period to be refiled. The updated CSED will be input to ALS . If the CSED is in suspense, the CSED field of Form 12636 should show all asterisks (**/**/****) or a future date (e.g., original CSED plus 20 years). The CSED will update on ALS once the suspense status is resolved. Do not put N/A in the CSED field of Form 12636.

  3. Although N/A appears in the refile by date field (column (e)), the rules for refiling do not change. The lien must be refiled timely in order that the "notice" of lien remains valid against third parties and more importantly, that the statutory lien is not inadvertently released because of incorrect information in column "e" .

  4. Refile deadlines can be calculated using the formula below:

    1. Calculate the original refile deadline according to IRC 6323(g)(3)(A), [10/20/1990 + 10 years 30 days = 11/19/2000]

    2. For a second refile period deadline calculate the refile period according to IRC 6323(g)(3)(B), [the one year period ending 10 years after the first refile deadline, [11/19/2000 + 10 years = 11/19/2010]

    3. For a third refile period deadline calculate the refile period according to IRC 6323(g)(3)(B), [the one year period ending 20 years after the first refile deadline, [11/19/2000 + 20 years = 11/19/2020].

    4. Enter the date calculated using the above methodology in column (e) of the NFTL.

      Note:

      The refile period calculations for old assessments may vary due to prior law. Contact Advisory and Counsel if a tax assessment CSED or lien refile period ended prior to November 5, 1990. See IRM 5.12.2.20.2.1 for additional information.

  5. When the module is satisfied, ALS will systemically issue a release.

5.12.6.3.3  (07-16-2010)
Duplicate NFTL

  1. Duplicate NFTLs are those filed on a taxpayer with entity, tax period information, and filing location identical to that of a previously filed NFTL. All employees will research IDRS or ALS before inputting NFTL requests to ensure duplicates are not requested. If CLU is inputting the NFTL, notify them immediately.

  2. If research indicates a previously recorded NFTL exists, do not request a new lien. If CLU is inputting the NFTL, notify the requesting employee.

  3. If a duplicate NFTL is recorded, issue Letter 2440, Notification of Duplicate Notice of Federal Tax Lien Filing to notify the taxpayer when duplicate liens are filed. CLU or revenue officers may issue L2440.

  4. Regardless of the reason for a duplicate lien filing, the last document recorded will be withdrawn.

  5. When duplication occurs at the recording office because both copies of the NFTL are recorded or duplicate notices were mailed, CLU will submit a request for withdrawal to Collection Advisory. Do not use ALS to prepare the withdrawal. Use the Intranet fillable form (Form 10916(c)).

  6. Revenue officers who inadvertently record a duplicate NFTL will submit and obtain approval of the withdrawal through Advisory. When approval is received, they will secure e-mail the prepared and signed withdrawal to CLU. Recording information for the second recorded NFTL will be placed on the withdrawal.

  7. If the originator is no longer assigned the case, forward the request to the Advisory area where the taxpayer resides for approval.

  8. Recording fees for withdrawals will not be posted to the taxpayer's account.

5.12.6.3.4  (07-16-2010)
Adding Recording Data to ALS

  1. The priority of the federal tax lien amongst other creditors is determined by the filing date and time. In regard to a federal tax lien that attaches to real property, state law may impact the priority accorded to the lien if it requires that the document filed also be indexed and arranged in local records in such manner that a reasonable inspection of the index will reveal the existence of the notice of federal tax lien. Most recording offices provide recording or indexing data which includes the date, time, book number, page number, and time of the recording. It is important to accurately and timely input correct recording office data. Recording data (book number, page, etc.) differ amongst recording offices, i.e., some use the recording number, some use the book and page, some use the serial numbers, some use a combination of the above. The court input data screen is set by the ALS functional coordinator.

  2. Immediately input recording data (daily) when received, but no later than 4 calendar days after receipt. If ALS access is not available secure e-mail or fax the recording data to the CLU.

  3. If the employee has appropriate ALS permissions, input the recording data by taking the following steps:

    1. Select "Input Court Recording Data" from the "ALS Lien Application Menu" or type the literal " court" at the prompt.

    2. Select a specific lien by using the standard options displayed at the bottom of the screen.

    3. Select #7 Record, after accessing the correct lien.

      Note:

      If researching by TIN or NAME, select #5 and choose the correct SLID for update. Then select #7 Record.

    4. Enter all recording data provided by the recording office by following the prompts. The cursor will be at the date field. (a) Date – date notice was filed, mmddyyyy. (b) Time – records time and day recorded, hhmm (after 12:00 PM you must enter the hour using military time, for example, 1:00 PM is 1300, 2:00 PM is 1400, etc.). (c) Book – number of the book where the lien is recorded. (d) Page – page number of the recording book. (e) UCC – Uniform Commercial Code number assigned to the lien. (f) NO – serial number assigned to lien as a recorder’s reference.

    5. Press "N" or type "OK" at the prompt, if you need to edit the record. This will allow you to re-input entries.

    6. Press "Y" to return to the lien record.

    7. Press "E" to return to the lien menu or CTRL "U" to exit.

  4. When inputting recording data, review the lien to verify that the county identified on the lien matches the county where the lien was filed. This is very important since it establishes our lien priority.

  5. If the (filing location) counties don't match, contact the appropriate lien team for assistance with the correction. The team will assist with any corrective action they deem appropriate. The lien may not be properly released in the correct county if the appropriate information is not found on ALS once the tax liability is satisfied.

  6. Add an ALS history with an explanation of the error.

  7. When revenue officers manually release NFTLs there are a few important tasks.

    1. First they must ensure they have properly included the original NFTL recording information on the certificate of release.

    2. Second they must provide the manual release recording information to CLU for input to ALS or input the manual release recording information to ALS personally.

    This ensures that ALS is appropriately updated and when cross-referenced provides accurate data.

5.12.6.3.5  (07-16-2010)
Correcting the NFTL

  1. The ALS database should always contain NFTL records that mirror information filed at recording offices. Exceptions are documents not created by ALS or changed after generation.

  2. An error may be corrected prior to the NFTL being mailed (normally within 2 days of request) for recordation. Contact CLU by secure e-mail to request the correction.

  3. After the document has been mailed for recordation, changes will not be made to the document. The NFTL must be amended.

  4. If changes were made after generation, add an ALS history item explaining the change.

5.12.6.3.6  (07-16-2010)
Amending the NFTL

  1. Amending NFTLs occurs after the NFTL has been mailed. Recording data must be input to ALS before an NFTL can be amended.

  2. A NFTL should be amended if:

    1. The name is incorrect (does not clearly identify the taxpayer to other creditors, i.e., Y. Corn should be Yale Cornell.

    2. The assessment date is incorrect.

    3. The tax period is incorrect.

    4. The unpaid balance of assessment at the time of filing is significantly different from what is listed on the NFTL for example, the NFTL shows $30,000,000 and the actual assessment is $30,000.

    5. The name of a non-liable taxpayer is mistakenly placed on the NFTL.

    6. The name and/or address of a government official (e.g., Secretary of the Treasury, IRS Commissioner, etc.) is improperly shown as fiduciary or trustee.

      Note:

      Normally, NFTLs are not amended for an incorrect address only. The address can be changed in conjunction with another correction to the NFTL.

  3. Use ALS to amend recorded NFTLs. Field employees with " Amend" permissions may elect to amend the NFTL. Otherwise have CLU amend the NFTL by sending them via secure email the following:

    1. the serial number (SLID) of the NFTL,

    2. the court recording data for the NFTL, if not already in ALS; and,

    3. the correction to be made (e.g., change the name of the taxpayer from Y. Corn to Yale Cornell).

  4. NFTLs should be amended within five days of receipt of request by the appropriate lien team. Contact the appropriate CLU team if the amended lien is not on ALS within that time.

  5. ALS will generate a new CDP notice for amendments to the tax period.

  6. For NFTLs not generated by ALS (nominee, alter ego, transferee liens), the requesting employee will prepare the amended lien document. Secure e-mail scanned documents to the appropriate lien team for processing.

  7. If the NFTL is amended due to the erroneous inclusion of a name of government official, notify the group manager. If the NFTL is related to an abusive tax avoidance (ATAT) situation, also notify the ATAT Collection Policy Analyst.

  8. CLU procedures are found in 5.19.12.

5.12.6.3.7  (07-16-2010)
Mutual Collection Assistance Requests (MCAR)

  1. The U.S. tax treaties with Canada, Denmark, France, Netherlands, and Sweden provide that the treaty partner may request assistance from the IRS in collecting taxes owed to the treaty partner by individuals residing in the United States.

  2. To request collection assistance, the treaty partner sends a Mutual Collection Assistance Request (MCAR) to the Office of the Deputy Commissioner (International), LMSB, who serves as the U.S. Competent Authority under tax treaties.

  3. The Office of the Deputy Commissioner (International), LMSB, forwards the MCARs to the MCAR Coordinator, SB/SE International, Group 19.

  4. For general procedures processing incoming MCARs, see IRM 5.1.8.

5.12.6.3.7.1  (03-15-2005)
Preparing Form 668(Y)(c) from MCARs

  1. When the filing of a lien is required, International will make a request by means of a courtesy investigation to the revenue officer group responsible for the zip code where the taxpayer resides.

    Note:

    Do not use ALS to prepare MCAR liens.

    Note:

    CDP notices will not be created for MCAR liens.

    1. Use the format shown in Exhibit 5.12.2-1 as a guide to prepare Form 668(Y)(c), Notice of Federal Tax Lien.

    2. Use only the serial number provided by International.

    3. If the taxpayer identification number is not known, use the Taxpayer Control Number (TCN) assigned by International to the MCAR assessment as the identifying number.

    4. Use the Last day for Refiling collection statute date provided by the treaty partner as provided to you by International.

  2. The NFTL will be filed in the appropriate recording office.

  3. A reasonable time after filing of the notice of the MCAR lien, the revenue officer group responsible for the zip code where the taxpayer resides will send a letter notifying the taxpayer of the lien filing, along with Publication 1660, Collection Appeal Rights, and referencing the Article in the tax convention authorizing the MCAR claim. Collection Due Process rights are not available to taxpayers subject to an MCAR claim. However, if the revenue officer and the taxpayer disagree on the application of the MCAR provisions in the relevant tax convention or the terms of an installment agreement, a Collection Appeals Program hearing may be requested by the taxpayer (see IRM 8.24.1).

  4. When CLU receives the recorded copy of the NFTL, it will be forwarded to the requesting revenue officer.

  5. The revenue officer will return a copy of the NFTL to International once the lien is recorded. The revenue officer will provide the appropriate recording information to International.

  6. Do not request input of TC 582.

  7. Do not request input of TC 360, filing fees are not assessed against MCAR taxpayers.

5.12.6.3.7.2  (03-15-2005)
Refiling and Release of MCARs

  1. International will be responsible for determining whether to refile or release the NFTL.

  2. NFTLs for refiling and certificates of release will be:

    1. prepared by International,

    2. forwarded to the appropriate revenue officer group responsible for the zip code where the taxpayer resides,

    3. forwarded by the revenue officer group to the CLU with a request to complete the recording process, if appropriate.

  3. Do not input TC 582 for the refile or TC 583 if the NFTL is released.

  4. Do not input TC 360 for filing fees.

5.12.6.3.8  (07-16-2010)
Printing the NFTL

  1. NFTLs will be printed within 5 business days of input to ALS.

  2. Liens are printed on Tuesdays and Thursdays ONLY. However, when deemed necessary by CLU management, liens may be printed other days. CLU will ensure that CDP notices are issued timely in these instances.

  3. CLU is allotted 3 business days (including the print day) for administrative processing. Documents are normally sent to recording offices by close of business the next business day.

  4. The taxpayer's copy is printed with the CDP notice.

  5. CLU procedures are found in IRM 5.19.12

5.12.6.3.9  (07-16-2010)
Mailing the NFTL

  1. CLU mails NFTLs within 2 business days, starting the day after the NFTL is printed.

  2. Most local officials accept the NFTL (for filing) by mail.

    Note:

    For a NFTL mailed to a recording office that does not require the lien to be indexed in order to give notice to third parties of its existence, the date the NFTL is delivered by the U.S. Postal Service to the recording office is the date it is filed. Because it is generally not possible to know the date a recording office receives the NFTL in the mail, the Service has made certain assumptions in order to identify the last date by which the taxpayer can request a CDP hearing. The Service presumes that it takes three business days, beginning the business day after mailing, for a NFTL to be received in the mail by a local recording office. As a result, under the Service's assumptions, the NFTL is "deemed filed" on the third business day after the mailing date. Thus, if a NFTL is printed on Tuesday and mailed on Thursday, it is deemed filed on Tuesday of the following week. A taxpayer can challenge this presumed filing date if he can show that the recording office received the NFTL on a date later than under the Service's presumed filing date. See IRM 5.1.9.3.2.1.
    Additionally, the assumption that a NFTL is received by a recording office 3 business days following the date of mailing and thus deemed filed does not take into account that some states' laws require deeds affecting real property be indexed. In such states, pursuant to IRC section 6323(f)(4), filing is not complete until such NFTL is indexed by the local recording official and recorded in the index at a place of public filing in such a manner that a reasonable inspection of the index will reveal its existence. Thus, there could be a case in which the taxpayer will be able to dispute the Service's calculation of the last date by which a CDP hearing can be requested upon showing that the Service's assumptions are incorrect.

  3. The CLU is responsible for preparing a transmittal, Form 3915, Processing Notices and Releases of Federal Tax Lien and Other Related Certificates, that accompanies Parts 1 and 2, if necessary.

  4. Part 2 of the NFTL is mailed to the recording office, when appropriate, unless an agreement exists between IRS and the recording office to issue one copy.

  5. The Service bears the cost of obtaining the court recording data by including a self-addressed postage paid envelope, E-25C, for the return of Part 2, when required.

  6. If the NFTL is not accepted by mail or circumstances dictate immediate action, the NFTL will be delivered personally to the proper recording official.

  7. CLU procedures are found in IRM 5.19.12.

5.12.6.3.10  (07-16-2010)
Refiling the NFTL

  1. Refiling the NFTL is essential to maintain the Service's priority established by the original lien filing when the collection statute is extended. See IRM 5.12.2.20 for lien refiling procedures.

  2. Requests for refiles will be input through ALS.

  3. Employees who do not have ALS permissions to refile liens will request the NFTL refiling by submitting a request (Form 12636) to CLU.

  4. Form 12636 must include all information that should be updated, i.e., dollar amount, address, CSED.

    Note:

    It is essential to show the updated CSED for each period to be refiled so that this may properly be input to ALS. If the CSED is in suspense due to litigation, the CSED field of Form 12636 should show all asterisks (**/**/****) or a future date (e.g., CSED plus 20 years). The CSED will update on ALS once the suspense status is resolved. Do not put N/A in the CSED field of Form 12636.

  5. Employees with ALS refile permissions, refer to the ALS User Guide for guidance on how to create these documents.

  6. CLU prints and mails refiled documents.

  7. CLU procedures are found in IRM 5.19.12.

5.12.6.3.11  (03-15-2005)
Out-of-Area Lien Filing

  1. A NFTL filing request received for a recording office outside your lien team area is described as an out-of-area lien.

  2. These liens can be input by your team, but will be printed by the lien team that is assigned the area where the recording office is located.

  3. Upon receipt, but not later than 5 business days after receipt, the NFTL will be input to ALS, printed and mailed.

  4. Employees will enter the zip code (in Create) where the property is located. ALS will display the corresponding filing jurisdiction.

  5. The appropriate CDP notice will be generated and printed at the centralized print site.

5.12.6.3.12  (07-16-2010)
Not To Be Filed Liens

  1. Not to be filed liens (NTBFL) are created by CLU when a non-critical error, e.g., TIN or MFT, is found on a recorded lien. The information sharing between IDRS and ALS relies on the correct TIN, MFT, tax period and name control. In order for IDRS to pass information such as updated CSED or satisfaction of a tax module to ALS, a lien must be created with matching information from the original lien but with the corrected TIN and/or MFT. Any other corrections will be made by amending the lien.

  2. Requests should be submitted using Form 13809.

  3. The ALS name control can be corrected without creating a NTBFL.

  4. The history screen is documented listing the original lien's SLID number and the NTBFL SLID number.

  5. NTBFLs are not mailed to recording offices. These liens are for internal use only.

  6. When the lien modules are satisfied on IDRS the notification will come down to ALS updating the NTBFL. Once all the modules are satisfied the NTBFL will generate a release to the print queue.

  7. When the release is printed the lien clerk will be alerted to the NTBFL status of the release and will take steps to immediately release the corresponding original lien.

  8. If a NTBFL is sent to the recording office in error, and you become aware of the filing, immediately call the lien unit so that they may contact the recording official via telephone to retrieve the notice.

    If a not to be filed lien and there is then
    is recorded a balance due. contact Collection Advisory to request approval of a withdrawal.
    is recorded. no balance due (full paid). contact CLU for issuance of a certificate of release.
    is not recorded   contact the recording official requesting the not to be filed lien be returned without being recorded. If the recording office does not return the NFTL, CCP will add a ALS history item including the date, name of contact and resolution.

  9. Advisory will approve or deny withdrawals within seven calendar days.

  10. CLU procedures are found in IRM 5.19.12.2.3.

5.12.6.3.13  (07-16-2010)
Removing the NFTL

  1. When a NFTL has been requested in error, the requesting employee may request that the NFTL be removed from documents being mailed to the recording office.

  2. Employees who request lien filings will contact the CLU, by calling the internal toll free number or via secure e-mail, to have the lien removed after a request for lien filing has been made.

  3. Requests must be received and CLU actions completed by 8:00 PM EST on the day after the lien is printed (Wednesday or Friday). Timely requests eliminate the generation of the CDP notice.

  4. Request that CLU document the reason the lien is being removed and keep the documentation.

  5. CLU procedures are found in IRM 5.19.12.7.2.1.

5.12.6.3.14  (07-16-2010)
Obtaining Copies of Recorded Documents

  1. CLU will not pay fees for certified copies or faxes of lien documents.

  2. Employees who require certified copies will:

    1. obtain a travel advance, or

    2. claim the expense on a travel voucher.

  3. Invoices received from recording offices will be forwarded to the group manager for resolution. The group manager will be responsible for ensuring the invoice is paid within 10 calendar days of receipt.

  4. Recording offices will be provided the name, phone number and mailing address of the group manager to pursue fee collection.

  5. To prevent further payment requests from recording officials, CLU may annotate the location of the invoice and retain a copy in their files.

5.12.6.4  (07-16-2010)
Collection Due Process (RRA) Notices

  1. IRC 6320 requires that the Service notify taxpayers of their rights to a lien collection due process hearing within 5 business days of filing the NFTL.

    Note:

    The 5 business day period begins to run the day after the 3 business day period allotted for delivery of the NFTL to the local recording office.

  2. The CDP notice (L3172, Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320, is created in the ALS database when the NFTL is printed.

  3. CLU procedures are found in IRM 5.19.12.

5.12.6.4.1  (07-16-2010)
Mailing the CDP Notice

  1. ALS systemically creates certified mail numbers and listings for domestic mail. Listings have the following information:

    1. certified mail number,

    2. taxpayer name,

    3. address,

    4. postage cost,

    5. certified mail cost,

    6. total postage per item listed.

  2. Within 5 business days of printing the NFTL, the CDP notice will be mailed.

  3. The day after the lien is printed, the CDP notice is generated and forwarded to the Correspondence Production Services (CPS) Branch for scheduled printing and mailing. The print sites mail notices no later than 5 business days after they are received.

  4. CPS encloses:

    1. Publication 594, The IRS Collection Process,

    2. Publication 1450, Instructions on Requesting a Certificate of Release of Federal Tax Lien,

    3. Publication 1660, Collection Appeal Rights,

    4. Form 668(Y)(c), Notice of Federal Tax Lien, and

    5. Form 12153, Request for a Collection Due Process or Equivalent Hearing.

  5. See IRM 5.12.6.4.1.2 for registered mail procedures.

  6. CLU procedures are found in IRM 5.19.12.

5.12.6.4.1.1  (11-30-2007)
Mailing Manually Prepared CDP Notices

  1. There may be rare instances when a manually prepared CDP notice is required.

  2. L3172, will be prepared, printed and sent certified mail to the taxpayer within the required 5 business day period after the NFTL is filed by the requesting employee.

  3. The response due date will be computed by the employee preparing the notice by adding 3 business days for NFTL mail delivery to the recording office (allowed by IRS) and the 5 business days and 30 calendar day periods required by IRC 6320.

  4. Complete and attach USPS Form 3800, Certified Mail Receipt.

  5. Document the ICS history with the certified mail number, the date stamped on the receipt (or retain a copy) and the date mailed to the CLU.

  6. Express mail or scan into a PDF file, the USPS date stamped receipt to CLU for filing and retention. If the receipt is scanned, retain the original in the case file.

  7. CLU will file USPS Forms 3800, Certified Mail Receipt, by date and taxpayer last name.

5.12.6.4.1.2  (11-30-2007)
Registered Mail Receipts (Foreign Mail)

  1. Lien CDP notices must be sent to foreign countries by registered mail. CPS manually prepares a registered mail listing for all IRS registered mail. The register is not prepared by function.

  2. ALS creates a certified mail listing for taxpayers with foreign addresses.

  3. CPS will provide CLU, when available, with a copy of the ALS certified mail listing without a date stamp and a copy of the date stamped registered mail listing.

  4. CLU will retain both registers. The ALS register will serve as a research document when determining if a foreign notice was issued.

  5. Registered mail listings will be identified and marked as: FOREIGN: Registered Mail.

  6. Retain registers in date order by month/year, in the same manner as certified mail listings.

5.12.6.4.1.3  (07-16-2010)
Collection Due Process Lien Notice Propriety

  1. Under IRC 6320, the Internal Revenue Service must notify taxpayers in writing of their right to a Collection Due Process (CDP) hearing within five business days after a Notice of Federal Tax Lien (NFTL) is filed.

  2. Notification is proper whether or not the notice is received, as long as it is properly left at the taxpayer's dwelling or usual place of business or sent by certified or registered mail to the taxpayer's last known address. Failure to provide proper, timely IRC 6320 notification does not affect the validity or priority of the NFTL.

  3. When it is determined proper and timely notification was not provided, the IRS must promptly provide the taxpayer with a substitute notice and an opportunity to request a CDP hearing. See Q-A11 and Q-A12 in Treasury Regulation 301.6320-1(a)(2).

5.12.6.4.2  (07-16-2010)
Amended NFTL Generates New L3172

  1. IRC 6320 requires that taxpayers be provided one appeal opportunity per tax period, per assessment.

  2. A new CDP notice (L3172) is required when the tax period is corrected. A new 30 day response due date is required.
    EXAMPLE: The taxpayer's name is misspelled, i.e., Jane Smith the correct spelling is Smyth and the tax period on the lien is 2000. The correct tax period is 2002. The taxpayer is entitled to a hearing for each tax period. The incorrect spelling of the taxpayer's name should also be corrected. A correction of the name only will not create a new CDP notice. A L3171 will be created.

  3. ALS will generate the appropriate CDP notice. The notice will be printed and mailed from the Correspondence Production Services sites.

  4. If an NFTL is amended manually, the CDP notice must be mailed within five business days of the NFTL filing.

  5. The requesting employee will send the new CDP Notice (L3172) by certified mail or registered mail (foreign addresses) to the taxpayer's last known address not more than five business days after the 3 business days allotted for delivery of the NFTL to the recorder's office (i.e., the deemed filing date).

  6. The new CDP notice (L3172) may, alternatively, be delivered to the taxpayer in person or left at his home or usual place of business (which includes his place of employment).

  7. CLU procedures are found in IRM 5.19.12.2.2.

5.12.6.4.2.1  (07-16-2010)
Suppressed CDP Notices for Amended Liens

  1. Amended lien requests may be forwarded to CLU for input to ALS or users may use the ALS "Amend" option.

  2. Upon receipt of the request, the amended lien information is input into ALS. A lien is amended to correct information, such as, the taxpayers' name, the tax period, MFT, etc. See IRM 5.12.2.

  3. ALS will allow users to amend the taxpayer's name, balance due and tax period.

  4. The ALS history on both the original lien and the amended lien should be documented to include the following information:

    1. requestor's name

    2. reason for amendment

    3. SLID number of the amended lien

  5. The amended NFTL will be printed by CLU during the normal printing process (Tuesdays and Thursdays ONLY).

  6. A copy of the amended lien is printed by CPS and mailed to the taxpayer.

  7. CLU submits the amended lien for recording using normal processing procedures.

  8. A CDP notice will be issued systemically, if necessary.

  9. The CLU retains and files the certified mail receipt.

5.12.6.4.3  (07-16-2010)
Returned CDP Notices

  1. All undelivered mail (including registered mail) will be returned to the requesting employee or the office designated by the function for address verification. All returned mail will be researched and resolved within 7 calendar days of receipt.

  2. Check IDRS to verify the address.

    If the address Then
    is correct or is the last known address no action is required
    is not the last known address and the new address was effective prior to or during the same cycle of the NFTL filing that caused the CDP notice to be issued issue a new notice to the new address.
    is not the current last known address but the new address was not effective until after the cycle date of the date of the NFTL filing that caused the CDP notice to be issued a new notice is not required but if the new address becomes known during the next cycle, send a courtesy copy of the notice to the new address

  3. In cases where a new address is found, employees may use the ALS NOTADD option to ensure a new L3172 is created. A re-issuance of a CDP with a new Appeal date and/or co obligor can be input using the [A]dd Co-obligor option through the ALS NOTADD screen. Using this option will always generate a new L-3172. 4. For re-issuing CDP notices, select Add co-obligor and enter the taxpayer’s name and mailing address. Answer "Yes" to process the request.

  4. Employees receiving returned lien CDP notices will:

    1. Research IDRS to verify the notice address.

    2. Issue a new notice if a new last known address is found on IDRS AND the current address was on IDRS prior to the date of the CDP notice. Check the cycle date on the address on ENMOD. Compare the cycle date to the cycle date of the CDP notice. If the cycle date on the ENMOD address is prior to or in the same cycle as the notice date, input the new address through NOTADD for re-issuance of the CDP notice.

    3. Revenue officers will retain returned mail notices in the case file or if the case is closed, forward the notice to the closed file attached to Form 3210, Document Transmittal.

    4. Employees with automated systems who cannot retain the returned document will document the case history showing the above actions were taken and with the approval of their immediate manager, destroy the returned mail.

    5. Request input of or input the appropriate TC 971 and action code. See IRM 5.12.6.4.3.1.

  5. If the reissued CDP notice is returned, there is no need for additional research because the reissued notice was mailed to the last known address at the time, based on prior research.

  6. If the address is incomplete, the correct address will be input and reissued with a new 30 day response due date. ALS will systemically generate a new response due date for notices corrected through the system.

  7. If the address is complete, and the employee requesting the NFTL has a recent address change, a substitute notice will be issued.

  8. CLU will request input of the appropriate IDRS transaction and action codes for any mail they process.

  9. CLU procedures are found in IRM 5.19.12.6.4.

5.12.6.4.3.1  (07-16-2010)
Transaction Code 971 Posting for Receipt and Delivery of CDP Notices

  1. Transaction code (TC) 971 with an action code (AC) posted to IDRS enables employees to determine the status of lien collection due process notices without ALS research.

  2. ALS systemically posts the TC 971 AC 252 indicator on IDRS to reflect the taxpayer's receipt of their CDP notice. Expect to see the TC 971 AC 252 post on IDRS 10 days after the NFTL is printed in CLU for mailing to the recording office. The week the NFTL is printed in CLU and sent for recording, ALS sends a file to the Centralized Print Sites containing the new NFTL requiring a CDP notice issuance. Then the following week ALS sends a file of the new NFTL to IDRS to post the TC 971 AC 252. This file is sent to IDRS at the same time as the ALS file containing the TC 360 filing fee information.

  3. If the TC 971 AC 252 does not post, contact the FORT and take steps to ensure that, either systemically or manually, the TC 971 AC 252 posts to IDRS.

  4. ALS will also systemically upload to IDRS the delivery results for the CDP notices. ALS will combine these CDP notice delivery results with the same week’s TC971 AC252 and TC360 transactions file. To have ALS systemically post the CDP notice delivery results:

    1. Go to the lien notice screen by typing in �NOTADD� at the menu prompt or selecting �RRA Lien Notice� from the menu.

    2. On the NOTADD screen, select the action that is to be taken such as updating a mailing address; marking the notice undeliverable, refused, unclaimed; etc.

    3. Enter the certified mail number used for the CDP notice when selecting delivery results unclaimed (TC 971 AC 253), undeliverable (TC 971 AC 254), or refused (TC 971 AC 255).

    4. Answer "yes" at the confirmation question.

  5. Revenue officers who manually prepare lien CDP notices must also request the input of this information.

5.12.6.4.4  (07-16-2010)
CDP Notices Returned by CPS

  1. CPS returns certified and registered mail CDP notices with bad addresses to CLU through the FORT for resolution. Once the FORT is notified of the bad address, CPS no longer has responsibility for ensuring that mailing occurs. Responsibility reverts to CLU.

  2. Incorrect/bad address notices returned by CPS are resolved by CLU immediately.

  3. If the address is correct, the notice must be mailed.

  4. CLU will:

    1. Verify the address on IDRS. If the last known address is a bad address (no street name, a series of numbers, e.g., 1212 without a street name, a blank street name, etc.), use CC FIND to locate the last mailable address provided by the taxpayer.

    2. Determine account status.

    3. If the lien is released, no action is required.

    4. If a bankruptcy occurred after the lien filing, issue a new CDP notice.

    5. In all other cases, issue the CDP notice.

  5. Use ALS NOTADD to create new notices when a new address is found or the address format can be corrected.

  6. If the address is correct (verified by IDRS research), but CPS software doesn't recognize it as a good address, use the L3172 ICS template to create a new CDP notice. A new CDP notice must be issued. DO NOT create the notice on ALS. CPS software will continue to reject the notice.

    Note:

    A mismatch of the city and zip code or the state and zip code may cause a bad address reject.

  7. Compute the taxpayer′s 30 day response due date beginning the day after the CDP notice is issued.

    Note:

    The presumption is that the notice is mailed the same day it is prepared. If the notice is mailed later than the prepared date, use the date you intend to mail the notice to compute the taxpayer's 30 day response due time period.

  8. Send the notice certified using USPS Form 3877, Certified Mail List or USPS Form 3800, Certified Mail Receipt, from CLU.

    1. Document the ALS history with the certified mail number and date mailed.

    2. Retain USPS Form 3800, Certified Mail Receipt, in date order by year and taxpayer name.

    .

  9. CLU researches and verifies the IDRS address for incorrect/bad address notices issued to taxpayers living outside the USA. CDP notices issued to taxpayers living outside the USA are sent registered mail. Notices will be corrected in the same manner as described above. However, registered mail receipts, USPS Form 3650, will be used for mailing.

    1. Registers will be retained, identified and marked as FOREIGN: Registered Mail.

    2. Retain registers in date order by month/year and taxpayer name.

5.12.6.4.5  (07-16-2010)
Creating Notices for the Power of Attorney (POA)/Taxpayer Representative and Co-obligors

  1. Employees with the appropriate ALS permissions, should use ALS to create CDP notices for the taxpayer's representative, POA and co-obligors.

  2. Employees without ALS permissions or ICS must submit a request, via secure e-mail within 4 calendar days of requesting the NFTL, to the lien processing unit.

    Note:

    ICS systemically sends the POA information on ICS to ALS if the POA record matches at least one period on the lien.

    Note:

    CDP notices issued to co-obligors (ex-spouses, spouses living at a different address) and business partners must be issued within five business days of filing of the NFTL and sent certified mail.

  3. Requests forwarded to the CLU for the issuance of POA CDP notices must be requested by secure e-mail and include the name and address of the representative as well as the taxpayer's name, TIN, and tax period.

  4. If CLU is not notified, employees responsible for making lien filing determinations are responsible for ensuring that the appropriate persons receive a copy of the CDP notice and all enclosures (Publications 594, 1450, 1660, Form 668(Y)(c), Form 12153).

    Note:

    Document the case ICS history with the date representative information is provided to CLU.

    Note:

    Employees will issue cover letter, L3262, POA Lien Notification Letter, for letters provided to the taxpayer's representative, when ALS is not used.

  5. Employees, other than those in ACS and revenue officers, must use secure e-mail to forward the name and address to the CLU. CLU will use the information to prepare the CDP notice for co-obligors. Examples of co-obligors are: ex-spouse, spouse living at a different address, and partners in a partnership, power of attorney and taxpayers' representatives.

  6. Upon receipt, the information will be immediately added to ALS. Information received by the CLU prior to the taxpayer′s CDP notice being generated, will be mailed the same day as the taxpayer's notice.

  7. ACS POA information is input directly into ALS by ACS Support. If this method is not used, the information must be secure e-mailed to CLU. Notices created for co-obligors will be printed and mailed the next business day.

  8. In no instance will the notice be mailed later than 5 days after receipt of the POA/taxpayer's representative's information.

  9. CLU procedures are found in IRM 5.19.12.2.1.1.


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