5.14.4  Financial Reviews, Below Deferral Level Accounts, Joint and Several Liability Relief Under IRC Section 6015, Withdrawals and Multiple Entities  (08-05-2010)
No Financial Reviews on Most IDRS Monitored Agreements

  1. Mailing of computer paragraph (CP) 522, "Review Financial Condition" has been suspended.

  2. Taxpayers whose cases are monitored in Centralized Case Processing, either in status 60 or manually, may also be contacted to obtain updated financial information, but not by use of CP 522

  3. Before entering into installment agreements, schedule changes in monthly payment amounts based on anticipated changes in taxpayers’ ability to pay. (See IRM  (03-04-2011)
Installment Agreements on Below Deferral (Account Issuance) Level Taxpayers & Procedures for Uncollectible Accounts

  1. Notice status balance due accounts less than the amount specified in IRM may be input to installment agreement status for indeterminate periods of time provided:

    • agreements do not extend past the CSED, and

    • taxpayers can make monthly payments of at least ≡ ≡ ≡ . (This minimum does not apply to guaranteed agreements — see IRM

  2. The agreements discussed in IRM may be taken if:

    1. The liability includes the total amount outstanding, including accruals and currently not collectible accounts;

    2. Equal monthly installments are required for IDRS monitoring; and

    3. there are no other balances due.

  3. Prepare Form 433–D or Form 2159 (levy source information is not required on these agreements); process per the guidance provided in IRM (See also IRM, regarding IDRS monitoring.)

  4. In cases in which the payment would be less than ≡ , (except guaranteed installment agreements):

    1. request that the taxpayer adjust Form W–4 (following the procedures outlined in IRM so the positive amount shown as being available for payments is instead used to increase current withholding; then,

    2. follow the instructions in IRM 5.16 — Currently Not Collectible.

  5. Reporting Accounts Uncollectible: If, based on analysis of Collection Information Statements taxpayers are unable to make payments, consider reporting accounts uncollectible — see IRM 5.16. Provide taxpayers with the address at the Campus where the taxpayer files returns (for mailing voluntary payments). Taxpayers who are unable to make payments generally should not be granted installment agreements.

  6. If taxpayers are able to make payments, but unable to fully pay all balance due accounts, then Partial Payment Installment Agreements may be considered (see IRM  (03-04-2011)
Installment Agreements and Multiple Entities

  1. Related entities can be included in one installment agreement. The agreement locator number will auto-populate on ICS to XX63, if there are no other conditions. The ALN ensures proper systemic monitoring of these agreements. For this type of IA , ensure the taxpayer entities are in filing and payment compliance (IRM prior to requesting the pending IA indicator (IRM When the pending IA indicator is present (TC971AC043) on the entity and one of the taxpayers is not in compliance at the time the IA is ready to be granted, a recommendation for rejection can be given to the independent administrative reviewer regarding only the person or entity that is not in compliance, and the taxpayer that is in compliance may be granted an installment agreement (if appropriate). The following types of taxes may be combined in one installment agreement:

    1. Taxes for two or more Form 1120S corporations if they share the same sole officer.

    2. A sole proprietorship’s taxes (on the sole prop.’s tax ID number) and the individual income taxes of the sole owner of the sole proprietorship.

    3. Taxes for married couples, even if the taxes are owed individually.

  2. When a request for an IA involves an SSN and EIN (Sole Proprietor) or two SSN's, some years filed joint and some single, combine the aggregate unpaid balance of assessment (CC SUMRY) of all modules. Determine if the taxpayer meets the requirements to qualify for an IA. An IMF account and related BMF account must be included in one IA.

  3. Select the correct IA type based on the combined aggregate unpaid balance of assessments (SUMRY) of all the modules on the related entities. The correct IA type is based on the dollar threshold and type of tax governed by the IA type (Streamlined, IBTF-Express, IBTF-IA).

  4. For installment agreements on multiple entities:

    1. Ensure the cross referenced identification number is entered when completing the IA on ICS by answering “Yes” to the question “Are there other TINs to be included with this installment agreement” to ensure proper input. Campuses will input agreements on the entity with the earliest CSED first.


      ONLY make this election when the cross-referenced TIN has an unresolved Bal Due on IDRS.

    2. Both agreements will cross- reference the related EIN or SSN using ALN (XX63). ALN (XX63) will be systemically included on the IA form by ICS (This ensures the accounts appear on the Installment Agreement Account Listings in the correct category.)

    3. The primary taxpayer identification number (TIN) will dictate the Campus to which the agreement will be routed for input. Primary SB/SE TINs will be routed to SB/SE Campuses. Primary W&I TINs will be routed to W&I Campuses for monitoring.

    4. The Campus that inputs the agreement will ensure that ALN XX63 is input on both agreements and the secondary TINs tax modules are input to IDRS status 63 and monitored at the same Campus.

    5. Since the secondary agreement is monitored wherever the primary agreement is set up, this will sometimes result in SB/SE Campuses monitoring W&I cases and W&I Campuses monitoring SB/SE cases.


    If an IMF account is included with an in-business BMF account, it must be input in accordance with the procedures provided in IRM 5.14.7, regardless of which TIN has the earliest CSED. The primary TIN for these agreements is the business entity.


    See IRM for Campus processes.

  5. These types of I/As , with an ALN of "xx63" cannot be systemically uploaded. ICS will block the input. Process this type of agreement by e-mailing the F433-D to the appropriate CCP mailbox (see below) or mail it on a Form 3210 to CCP at Mail Stop 5-E04.114.

    • Area Offices 21, 22, 23, 24, and 35 use *SBSE CCS GCP EAST1

    • Area Office 25 use *SBSE CCS GCP WEST2

    • Area Offices 26, 27 use *SBSE CCS GCP WEST1

  6. For certain liabilities assessed in the name and EIN of an LLC, different single member owners (SMOs) may be liable for separate tax periods assessed in the same name and EIN. See IRM 5.1.21 , Collecting from Limited Liability Companies. If multiple SMOs are liable for different tax periods assessed in the same name and EIN separate installment agreements would be required for each taxpayer and should be established using the Manually Monitored procedures in IRM .


    When the SMO is liable for some tax periods and the LLC is liable for different tax periods assessed in the LLC's name and EIN, follow the procedures in IRM 5.14.7 for a combined SMO/LLC installment agreement.

  7. Ensure a TC130 is input for the appropriate Social Security Number(s).  (03-04-2011)
Joint and Several Liability Relief Under IRC Section 6015 and Installment Agreement Requests

  1. In situations in which one joint taxpayer has requested relief from joint and several liability under IRC section 6015, if the nonrequesting spouse requests an installment agreement, and there is an unreversed TC 971 AC 065 on any balance due module or a MFT 31 has been established, then:

    1. Follow normal procedures to determine if the taxpayer qualifies for an installment agreement; and include all modules (even the modules with the unreversed TC 971 AC 065) in calculating if the proposed payment amount would full pay the liability before the Collection Statute Expiration Date (CSED). See IRM

    2. If the taxpayer qualifies for an installment agreement, make sure all balance due accounts are included, including those with TC 971 AC 065, and establish the installment agreement using Manually Monitored procedures in IRM

  2. If the spouse filing a claim requests an installment agreement and there is an unreversed TC 971 AC 065 on any balance due module, then:

    1. follow normal procedures to determine if the taxpayer qualifies for an installment agreement and, include all modules (even the modules with the unreversed TC 971 AC 065) in calculating if the agreement would fully pay the liability before the CSED.

    2. If the taxpayer qualifies for an installment agreement include all modules except those with an unreversed TC 971 AC 065 in the agreement itself.


      Use of the PPIA procedures provided in IRM is also an option if the taxpayer is unable to fully pay all balance due accounts through an installment agreement.

    3. Establish the agreement using Manually Monitored procedures in IRM

    4. If after such agreements are in effect claims filed under section 6015 are denied and the requesting spouse requests addition of the balance due account(s) to installment agreements, request this on Form 4844.

    5. Note on Form 4844 that the agreement for the case may now be monitored by IDRS if no other conditions exist that are mentioned in IRM

  3. To input pending installment agreement codes (TC 971 AC 043) or installment agreement codes (TC 971 AC 063), when an unreversed TC 971 AC 065 already exists on a tax module:

    1. reverse the TC 971 AC 065 using TC 972 AC 065;

    2. input TC 971 AC 043 or AC 063; and

    3. re-input TC 971 AC 065 (after the pending or installment agreement code is on the tax module)  (03-04-2011)
Withdrawal of Installment Agreement Requests

  1. Taxpayers may withdraw installment agreement requests either verbally or in writing.

  2. Exhibit 5.14.4–1 provides the format for withdrawal of installment agreement requests. This format must be used regardless of whether requests for withdrawal are verbal or written.

  3. Verbal requests are effective five (5) calendar days from the day they are received unless a written confirmation of a verbal request is received within the five (5) day period. (See IRM

  4. Include the reason for the withdrawal request in the appropriate part of the form.

  5. If, after a verbal request for withdrawal, written confirmation is not received, document the case file as to how the request for withdrawal occurred.

  6. Installment agreements are considered withdrawn (i.e., withdrawals are effective):

    1. upon receipt of written requests for withdrawal, or

    2. five (5) calendar days after a verbal request for withdrawal.

  7. Withdrawals should not be solicited by contact employees, but questions may be asked to clarify misunderstanding of taxpayers’ statements.

  8. Request input of TC 972 AC 043 (if a TC 971 AC 043 was previously input) on the effective date of the withdrawal. If the case has already been input into installment agreement status, then:

    • request input of TC 971 AC 163 instead, and

    • ensure accounts are removed from status 60 and the appropriate collection status is input.


    No independent review or appeal rights are required in this situation.

  9. If the installment agreement request was a joint request on a jointly filed return, both taxpayers must sign one request or separate requests for withdrawal for the request to be honored.


    If one or both of the requests is verbal, see IRM regarding the effective date.

  10. No independent review is required in the case of withdrawals. (See IRM

Exhibit 5.14.4-1 
Withdrawal of Request for Installment Agreement

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