Review taxpayer correspondence for the following information:

Take the following actions if the taxpayer meets the requirements for military deferment as outlined above:

The FORT will monitor all Military Deferment accounts until the deferment period expires (military deferment begin date to release/discharge date plus 180 days).

If the initial request for military deferment does not include sufficient information to grant a military deferment:

If the response contains sufficient information to grant the deferment, follow related instructions. IRM 5.19.1.4.9.1(2)

Resume normal collection activity if no response is received within 60 days.

Prepare Denial Letter 3079C, Denial For Military Deferment, for signature of Chief, Collection Operations.

Resume normal collection activity.

Follow the instructions for determining if the taxpayer meets the criteria for military deferment for cases in Status 60, 61, 63 and 64. IRM 5.19.1.4.9, Military Deferment.

Treat the installment agreement account as a request for military deferment when the taxpayer asks for a reduced payment amount due to material impairment resulting from active military service; use the chart below in such circumstances:

The Centralized Case Processing Operations, Field Resource Team (FORT) works Military Deferment Transcripts; for additional information see IRM 5.1.7

In-Business Trust Fund (IBTF) Express installment agreements may be granted if:

Campus Compliance employees must request full payment or suggest the liability is paid within 60 – 120 days. If the taxpayer is unable to full pay today or within 60-120 days:

Forward requests for an IBTF IA exceeding the dollar criteria to the field for processing; refer to the IRM 5.19.1.5.5.4 (11) transfers to the field.

Managerial approval is required.

If an IBTF Express agreement defaults, or is terminated, they may be reinstated or a new agreement may be granted immediately if:

If the taxpayer has delinquent returns and/or is not current in making FTD deposits for the current quarter, take the following actions:

Input the in-business trust fund IA using agreement locator number (ALN) XX15. XX15 was "previously" set aside for revenue officers but is now required for all functions in relationship to in-business trust fund IA. Exhibit 5.19.1-9.

After qualifications are met, always send Letter 2273C, Installment Agreement Accepted - Terms Explained.

Forward requests for an IA exceeding authority levels shown in IRM 5.19.1.5.5.4.to the field for processing. IRM 5.19.1.5.5.4. Installment Agreements

ACS W&I EMPLOYEES ONLY working incoming calls transfer calls to SB/SE

Enter history item "EXCDIAAUTH" on IDRS ENMOD or document AMS comments with Exceeds IA Authority.

Accounts Management and SB/SE Compliance employees may grant an IA for In-Business No Trust Fund or Form 1120 income taxes if the balance due is less than $25,000 assessed balance and will pay within five years. The following guidelines apply:

When both in business sole proprietor trust fund taxes and IMF taxes are involved, before considering the IA, IRM 5.19.1.5. In Business Trust Fund Express Agreement

If the dollar criteria is not met and FCC compliance is met, forward to the field for processing. IRM 5.19.1.5.5.2, Installment Agreement Requirements - In Business Trust Fund Express Agreement.

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.

When the taxpayers are divorced or separated follow IRM 5.19.1.5.5.11.1, Front End Mirror Assessments Process for IAs and CNCs

Federal tax refunds are subject to offset to pay balance due accounts during the life of the IA, including refunds from income taxes of individuals whose sole proprietorship or partnerships owe taxes. Ensure a TC 130 is input for the appropriate Social Security Number(s). For TC 130 input see IRM 5.19.10.3.5, Input of TC 130 on IDRS

For Installment Agreements involving cross-references, one account in Status 60 (primary) and the other in Status 63 (secondary). Use the agreement locator number (ALN) of "XX63" . Cross-reference agreements can be a combination of IMF/BMF or IMF/IMF:

When the first account is full paid, it appears on the IAAL documenting the Status 63 account to be placed in Status 60. For IAAL procedures: IRM 5.19.10.10

IMF modules with an aggregate unpaid balance of assessment (CC SUMRY) of≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ are classified as Large Dollar. These modules are worked by W&I and SB/SE IMF Large Dollar Inventory teams. This authority encompasses IMF accounts. .

If any modules are in ST 22 and you do not have access to the ACS system, transfer the caller to ACS. If unable to transfer the call, provide the taxpayer with the toll-free number for ACS. W&I 1–800–829–7650, SBSE 1–800–829–3903.

For correspondence, refer to ACS Support. Exhibit 5.19.1-2.

If there is a TC 480 or TC 780 on the account (ST 71), through AMS generate a Form 4442 to refer the request to the Compliance Services Offer in Compromise Unit at the campuses.

If any modules are in ST 72 (Bankruptcy): IRM 5.19.1.4.2. for procedures. If the taxpayer is calling to request an Installment Agreement (IA) a new tool is available under the Who/Where tab on the SERP home page titled Installment Agreement Requests When in a Chapter 13 Bankruptcy. Utilize this tool to determine if an Installment Agreement can be granted.

If there are potential indicators of fraud see IRM 25.1.11.4 and the taxpayer initiates an installment agreement, suspend any attempts to resolve the case and advise the taxpayer the case is subject to review and to make voluntary payments in the interim, see IRM 25.1.11.5

Research CC INOLES to check for cross-reference IMF/BMF TINs. IRM 5.19.1.5.5.3., IMF/BMF Related Account

For the dollar criteria for BMF accounts for Accounts Management and Compliance initiated IA, for In-business trust fund (referred to as In-Business Express agreements) IRM 5.19.1.5

Filing and paying compliance must be considered prior to granting an IA. IRM 5.19.1.3.4.1.

If not current on filing and payment compliance, follow rejection criteria. IRM 5.19.1.5.5.8., Installment Agreement Rejection Criteria.

If the request exceeds BMF authority and the case is in notice or queue status (ST24)

If the request exceeds BMF authority and the case is in Status 22 (ACS/ACSS employees Only):

Research IDRS and check for any balance due modules not current on IDRS (ST 23 or ST 53); these modules must be included in the IA. Take the following actions if ST 23 or ST 53 modules are involved.

The following Installment Agreement payment methods are available for the taxpayer

Advise the taxpayer verbally or in writing that penalty and interest CONTINUE to accrue until the tax is paid in full.

In accordance with the law, each year the IRS mails a Computer Paragraph, CP 89, Annual Installment Agreement Statement, to every taxpayer with an IA; the statement provides the dollar amount of beginning account balance(s) due and:

The Installment Agreement (IA) User Fee allows the IRS to recover costs of administering the IA program. For Installment Agreements with acceptance dates prior to January 1, 2007, origination fees were $43, and reinstatement fees were $24. Effective January 1, 2007, IA user fees are structured as follows:

The origination fee is established by regulation and cannot be waived for any reason for any installment agreement. The reinstatement/revision fee can only be waived for those reasons cited in paragraph (10) below. Hardship criteria do not apply to the user fee.

The user fee is non-refundable even if the taxpayer

When the customer makes a payment all of the money will be applied to tax. The User Fee Sweep (described below) will credit the UF account if necessary.

The IA user fee Transfer Program sweeps all active IMF IAs, coded as "user fee due", and moves the money from the tax account to an accounting fund for IA user fee. The sweep is done weekly, beginning 4 weeks after a TC670 has posted to the account. The payment is reversed with a TC 672 (Saturday julian date) in the DLN of the credit transfer, from "001" through "365" .

See the table below for when to charge a user fee.

There are very few instances when a user fee is waived. The user fee cannot be waived based on an individual decision from an IRS employee. The fee must be charged on all installment agreements except instances cited in the table below. When waiving the fee, enter a narrative on AMS.

For agreements with effective dates after January 1, 2007, taxpayers may qualify for a reduced origination or DDIA user fee, if they qualify as low income. There is no reduced fee for reinstatement installment agreement. As of January 2008, taxpayers meeting the established low income criteria are identified systemically and the account systemically adjusted.

User Fee discrepancies appear on the Installment Agreement Accounts Listing in CSCO; for additional information:

These discrepancies are generally worked on the IAAL and are listed for accounts where there is:

A pending IA is an IA that cannot be immediately input.

To qualify for a pending IA, including independent review with appeal rights, a taxpayer must meet the following criteria:

Only an IA request meeting the above criteria require input of a TC 971 AC 043 and are entitled to receive independent review and appeal rights. TC 971 AC 043 is input via CC REQ77 and used when input of the agreement is delayed or the agreement is pending or rejected. Input of the TC 971 protects the taxpayer from enforcement action while the agreement is pending.

Installment Agreements must be approved by a manager or the manager designee when:

Submit agreements for managerial review without delay. Input the agreement terms.

When a manager reviews an IA request for approval, document the following if approved:

If the manager does not agree the IA be granted, return the case to the originating employee for follow-up. The manager should document the reason the agreement was not approved in AMS comments.

For telephone contact requests requiring managerial review, advise the taxpayer they will receive a letter from us with our determination of the request within 14 days. If the agreement is accepted, input the IA and send a Letter 2273C with IA terms and conditions.

Review the IA request meeting all of the pending IA criteria; to determine if the IA should be rejected: IRM 5.19.1.5.5.6., Pending Installment Agreement Criteria.

After researching the account, Accounts Management and Compliance employees must use the following criteria to determine if the IA should be rejected:

For ACS/ACSS cases, assigned TOR6, TOS5 and the only information on the module is a TC 971 AC 043 indicating a pending IA, take the following actions:

Requests solely to delay collection action are rejected but not sent for independent review and do not have appeal rights. Do not input a TC 971 AC 043. Follow procedures in paragraph (5) below for actions to take when rejecting an IA request. The following requests for an agreement are included in this category:

Take the following actions when rejecting an IA request in paragraph (4) above:

IRC 7122(e) requires the Service to review all proposed rejections of taxpayer requests for IAs prior to communicating the rejection to the taxpayer and giving the taxpayer the opportunity to appeal. Only requests meeting all criteria are required to be identified as a pending agreement, have an independent review prior to rejecting the request to make payments, and be given appeal rights. For criteria: IRM 5.19.1.5.5.6., Pending Installment Agreement Criteria.

If during a telephone contact the taxpayer requests an IA and you propose for rejection, advise the taxpayer:

Take the following actions to prepare the case for review before informing the taxpayer of the rejection:

Forward the completed Form 12233 with attachments to the Independent Reviewer in your site.

The case is reviewed by the Independent Reviewer and returned to the originating employee within five days. The decision to uphold a rejection must be supported by one or more of the following factors:

If the rejection is sustained, the reviewer does the following:

If the rejection is not sustained:

.

Cases are suspended for 60 days allowing the taxpayer time to receive information, take appropriate action, and mail the information back to us; this includes information needed to establish an agreement or file an appeal.

Cases are filed in date and alpha order, respectively.

If you receive correspondence responding to a case held in the suspense file, associate the correspondence with the file and return it to the appropriate employee to complete processing.

If there is an open control base on IDRS the employee must be contacted. A control indicates an area or person is waiting for specific information from the taxpayer to close their case. See Document 6209, Section 14, Case History Status Code.

Each week, purge the cases from the rejected Installment Agreement file having exceeded their suspense period. Once the 60 day suspense period expires, check IDRS and AMS comments, seeing if any action was taken on the account, and if the TC 971 AC 043 is still on the module. If the balance due modules are in ST 60, destroy the Form 12233 and all attachments.

Input TC 972 AC 043 via CC REQ77 to reverse the TC 971 AC 043 using the expiration date of the 60 day suspense period.

For ACS cases, work the R6 inventory, for ACSS work the S5 inventory. Proceed with next case processing or work inventory lists, as appropriate. Proceed with collection action by issuing Letter LT11 if levy sources are available and no Letter LT11 was previously issued, or reassign the case "TOR5,21,LEVY" if levy issuance is the next appropriate action.

Place these cases in the twelve month suspense file for one year after the rejection was communicated to the taxpayer. After one year from the date of rejection, purge these cases from the file and destroy. (See IRM 1.15.52)

Do not forward correspondence or refer the taxpayer on an account when there is an open control in an "M" status with an activity code of "IAREJ" .

Do not refer a taxpayer to the Innocent Spouse Operation when they request an Installment Agreement and there is an unreversed TC 971 AC 065. Follow procedures below to process these requests. If the TC 971 AC 065 is reversed, follow normal procedures to establish on the MFT 31 module.

If the non-requesting spouse requests an Installment Agreement, establish the agreement on the MFT 31 module for the non-requesting spouse.

If the requesting spouse requests an Installment Agreement and there is an unreversed TC 971 AC 065 on any balance due module, take the following actions.

The input of Installment Agreements provides closure of telephone inquiries or correspondence; for Input of IAs:

If the account has a TSIGN of "0110" or "0120" , change the TSIGN to "0000" using CC ASGN (I or B); if the agreement defaults and goes back to ACS, it loads into the appropriate inventory; for input procedures see IRM 2.4.27 .

Cross-reference agreements can be a combination of IMF/BMF or IMF/IMF; for input procedures: IRM 5.19.1.5.5.3., IMF/BMF Related Accounts.

All Installment Agreements not immediately input onto IDRS, such as those requiring managerial approval. The following items must be documented on AMS:

Use systemic confirmation Letter 3217C when inputting the agreement via CC IAGRE unless there are other issues to address; for information on sending Letter 3217C See Exhibit 5.19.1-6. and Exhibit 5.19.1-7

Use Letter 2273C when Letter 3217C is not appropriate. For the return address and payment address, use the CSCO campus having jurisdiction.

The originator code identifies:

Select the originator code applicable to the IA; for Installment Agreement Originator Codes: Exhibit 5.19.1-10.

Originator codes can be updated when agreements leave Status 6X and are re-established; originator codes cannot be changed when the account is in Status 6X.

TC 971 AC 063 generates on the modules two weekends after input of the IA on IDRS; TC 971 AC 163 generates to reverse the AC 043 and AC 063 when the Installment Agreement becomes full paid or defaults and leaves status 6X.

A Direct Debit Installment Agreement (DDIA) is an agreement for which the taxpayer authorizes the IRS to request electronic transfer of funds from their checking account or shared draft account to the IRS; such payments are withdrawn on the same date each month.

If the taxpayer requests to make Electronic Funds Transfer Payments (EFT) through the internet using online banking methods, it is considered a regular Installment Agreement and not a DDIA.

Advantages to the taxpayer include:

To establish a DDIA, the taxpayer must submit a voided check or the routing and account number with their request.

Banking law requires the service to maintain a file of all DDIA’s within CSCO, either by paper or electronic media. (guidelines to be established by HQ).

All DDIA requests received in functions other than CSCO are routed to the CSCO DDIA liaisons with jurisdiction for the taxpayer account for SB/SE Campuses. W&I DDIA requests are consolidated at three campuses:

Inform the customer a 30 day verification process takes place between the IRS, our processing bank and the customers bank. Then the customer will receive a paper CP521 requesting the User Fee and their first payment. It will take up to 8 week after the 30 day verification before we request the first electronic payment (could be up to 3 months total).

Based on Balance Due State Mapping, route the DDIA to the appropriate CSCO site.

DDIA requests received in CSCO should be input by the receiving CSCO campus; the receiving campus must maintain these files to work various listings generated by the DDIA program

Any subsequent revisions to a DDIA are input through IDRS by the receiving CSCO site. Once input, the request must be mailed to the site inputting the original DDIA to associate it with the original file. Use the CSCO Campus address see, SERP Campus DDIA Liaisons for routing information; ensure the case is annotated with the following:

If necessary to review the paper DDIA request, use the Service Center Contact listing on SERP under Campus DDIA Liaisons; the site forwards the case file or notification the file cannot be found by fax within 48 hours to the requestor.

If a customer makes a telephonic request for a DDIA, establish as a regular IA and tell the customer to make his payments manually. Send the customer a Form 433D to complete, and provide the appropriate CSCO return address. Tell the customer he will be billed for the $105 User Fee and CSCO will revise to a DDIA upon receipt of the request and credit $53 back to tax.