5.19.10  Collection Operations Transcript Processing (Cont. 2)

5.19.10.9 
EFT Listings

5.19.10.9.2  (05-14-2008)
EFT 1240 Listing - CSCO Processing

  1. The EFT 1240 is a computer system run generating our DDIA payment requests and prenotes to the correspondent bank on a daily basis. This listing must be processed within 5 working days of receipt. Prenote and payment requests look the same; however, prenotes are always for ".00" dollars.

  2. The EFT 1240 also generates a listing posting the TC 670 to affected taxpayer accounts on IDRS. DDIA TC 670 transactions use a special blocking series and DLN.

    Example:

    " 97318-000-80116-6" : The document code is always "18" , with a blocking series of "800" to "899" .

  3. Blocking series "800" to "899" is used by Master File to produce a CP 57, Taxpayer Inquiry, Notice of Insufficient Funds, or CP 166, Insufficient Funds on Direct Debit Installment Agreement, for BMF accounts.

5.19.10.9.2.1  (09-15-2010)
EFT 1240 Error Records

  1. EFT 1240 are assessed on control-D by CSCO on a daily basis and must be worked within one day of receipt.

  2. CSCO contacts Computer Services immediately if the EFT 1240 listing is not received.

  3. Review the listing to ensure no error records are present. If records are present, notify the Computer Branch IMMEDIATELY; otherwise, destroy the listing.

5.19.10.9.2.2  (05-14-2008)
EFT 12 Expected Deposits Not Sent to Bank - CSCO Processing

  1. EFT 12 displays a listing of "Expected Deposit Dates not Sent to Bank" , this listing must be processed within 5 working days of receipt. This means there was DDIA information, prenotes and payment requests, to be sent to the correspondent bank on that date, but we did not do the necessary transmission.

  2. If a date appears in this section, the liaison notifies the Computer Branch immediately upon receipt for correction.

    Caution:

    This must be done within TWO days from the run date of EFT 12.

  3. If Computer Branch is not notified within two days, we must:

    1. Re-input the DDIA, generating new prenotes
      or

    2. Wait until the next month to send our payment requests

5.19.10.9.3  (02-01-2014)
EFT 18 Listing - CSCO Processing

  1. The EFT 18 program is used to notify CSCO on a daily basis and must be worked within 10 days of receipt.,

    • If there was a problem with a payment request

    • It also is the computer run posting TC 671 and TC 280 to the taxpayer accounts reversing the credit the EFT 12 program applied to the taxpayer’s account

      Note:

      If the original documents must be secured from another center, the time frame for processing the account on the error listing increases to three days.

    • It is put in EFTAD and indicates rejected by bank. TC 670 posts without a TC 280 and is given a skip and turned off and is then treated as a skipped payment, but the DDIA does not default unless the skip was previously used.

  2. Transaction Codes 671 and 280 are identified by special blocking series and document codes as described in IRM 5.19.10.9.2, EFT 1240 Listing - CSCO Processing:

    • The first TC 671 generates CP 57, Taxpayer Inquiry, Notice of Insufficient Funds, and turns off the Skip Indicator

    • The second TC 671 causes the agreement to default

  3. EFT 18 generates a hard copy listing received daily in CSCO.

  4. The EFT 18 Listing consists of:

    • Non-Payment Problem Register

5.19.10.9.3.1  (02-01-2014)
Non-Payment Problem Register

  1. The Non-Payment Problem Register generates whenever a payment is not received from the financial institution; work this problem register within ten days of receipt.

  2. When working this listing, ensure the taxpayer is allowed a skip if you reinstate the agreement.

  3. The following are associated RCs and resolutions:

    Return RC Resolution
    • 01: Insufficient Funds

    • 09: UncollectedFunds

    1. Research IDRS.

    2. Check CC EFTAD for 3 or more rejected debits within the past 12 months. If 3 or more are present, default the IA.

    • 02: Account Closed

    • 03: No Account/Unable to Locate

    • 12: Branch Sold to Another Financial Institution

    • 13: Receiving Financial Institution (FI) Not Qualified to Participate

    • 16: Account Frozen

    • 18: Improper Effective Entry Date

    • 19: Amount Field Error

    • 23: Credit Entry Refused by Receiver

    • 25: Addenda Error

    • 26: Mandatory Field Error

    • 27: Trace Number Error

    • 28: Routing Number Check Digit Error

    • 30: RCF Not Check Truncation Participant

    • 31: Permissible Return Entry

    • 32: RDFI Non-settlement

    • 34: Participation us Limited by a Federal or State Supervisor

    • 35: Return of Improper Debit Entry

    • 70: Permissible return not accepted

    1. Convert to a regular agreement, requiring the taxpayer to mail a check or money order and stop future DDIA payment requests by turning off the EFT Indicator

    2. Change the ALN from "03XX" to an appropriate ALN.

    3. Send a letter advising the taxpayer we established an installment agreement and reminder notices will be sent to them monthly.

    • 04: Invalid Account Number

    • 05: No Prenotification on File

    • 06: Return Requested by Originating Institution

    • 11: Check Truncation Entry Rerun

    • 17: File Record Edit Criteria

    • 20: Non-transaction Account

    • 21: Invalid Company Identification

    • 22: Invalid Individual ID Number

    • 24: Duplicate Entry

    1. Research the original document and/or contact the taxpayer.

    2. If unable to locate the case file and/or contact the taxpayer, convert to a regular IA and send Letter 1961C, Installment Agreement for Direct Debit Form 433-D Not Granted.

    • 07: Authorization Revoked by Customer

    • 08: Payment Stopped

    • 10: Customer Advises Not Authorized

    • 14: Account-Holder Deceased

    • 15: Individual (Beneficiary) Deceased

    • 29: Corporate Customer Advises Not Authorized

    Default Agreement
    Financial Institution Error:
    • 71: Misrouted Dishonored Return

    • 72: Untimely Dishonored Return

    • 73: Timely Original Return

    1. The first time these codes are returned, allow an additional skip and update AMS narrative.

    2. If these codes are received again in the following month convert to a regular agreement requiring the taxpayer to mail a check or money order. Stop future DDIA payment requests by turning off the EFT Indicator. Change ALN from "03XX" to another appropriate ALN.

    3. Send a letter advising the taxpayer we established an IA and reminder notices are sent monthly.

    Taxpayer Error:
    • 74: Corrected Return

    • 75: Original Return - Not a Duplicate

    • 76: No Errors Found

    1. The first time these codes are returned, allow an additional skip and update AMS narrative.

    2. If these codes are received again in the following month, default the agreement.

  4. Verify the TC 671 and TC 286 posted to the taxpayer’s accounts:

    If... Then...
    Transaction Codes 671 and 286 are present Take no action
    Transaction Codes 671 and 286 are not present Notify the Computer Branch immediately
    The return RC indicates the taxpayer closed the account or stopped payment and this is the first TC 671 Manually default the DDIA to prevent a second request for the payment.

  5. The other return RCs cause the system to default the agreement when the second TC 671 posts to the account; no further action is necessary.

  6. If the EFT 18 displays error records, the liaison reports the problem to the Computer Branch immediately.

  7. Retain the EFT 18 listing for one year. File the EFT 18 listings in reverse chronological order by Mellon (or Bank of America) Date.

  8. Sometimes an EFT 18 listing generates, but TC 671 and TC 280 do not post to IDRS. Accounting Operations is out of balance in this circumstance:

    1. The Computer Branch can correct this condition in most cases.

    2. When they are unable to correct this condition, CSCO prepares a one-sided Form 2424, Account Adjustment Voucher, for each affected taxpayer, to reverse the credit, attaching a copy of the EFT 18 with the appropriate taxpayer underlined in RED as backup documentation.

5.19.10.9.4  (05-14-2008)
EFT 16 Listing - CSCO Processing

  1. The EFT 16 Listing identifies when Accounting Operations is "out of balance" due to activity occurring for DDIAs. This arises when the correspondent bank gives return items, such as bad payments, on paper instead of through the EFT 18 Listing. This listing must be processed within 5 working days of receipt.

    1. When this occurs, a one-sided Form 2424, Account Adjustment Voucher, is prepared to manually reverse the taxpayer’s credit.

    2. Collection assists Accounting Operations with required research to resolve the out of balance condition.

    3. However, Accounting Operations needs minimal assistance in such matters as the correspondent bank provides the taxpayer data necessary to identify the problem account.

  2. The EFT 16 Listing generates daily, routed to Accounting Operations.

    1. If CSCO receives an EFT 16, follow up with Accounting Operations within one day of receipt to determine if they received a copy.

    2. If Accounting Operations did not receive it, forward the EFT 16 Listing to Accounting Operations.

    3. If Accounting Operations did receive it, destroy the EFT 16 Listing.

5.19.10.9.5  (02-01-2014)
EFT 10 Listing - CSCO Processing

  1. The EFT 10 Listing is an error list generated by Computer Services. CSCO receives this listing each week; and it must be worked within 10 days of receipt. The number of accounts on this list is low if CSCO inputs DDIAs correctly and works the EFT 18 Listings in a timely manner. The EFT 10 ensures the DDIA program functions correctly and CSCO processes the agreements correctly.

  2. Take the following actions to resolve different error categories:

    If... Then...
    Status Now Closed: The account is no longer in ST 60
    1. Check IDRS for a cross reference account in ST 63.

    2. Establish a DDIA on the cross reference account if the primary account is in ST 12.

    3. Default the cross reference account if the primary account is not in ST 12.

    Agreement Not on EFT File
    1. Check the Agreement Locator Number (ALN) on CC IADIS.

    2. Turn off the EFT Indicator if the ALN denotes it is not a DDIA.

    3. Check CC EFTAD for bank data if the ALN denotes it is a DDIA.

    4. If bank data not present on CC EFTAD, pull the Form 433-D, Installment Agreement or Form 9465, Installment Agreement Request, to obtain the data.

    5. If bank data is found, input the data using CC IAGRE and CC EFTNT.

    6. If a Form 433-D or Form 9465, cannot be found, make two attempts to call the taxpayer to verify information.

    7. If unable to contact the taxpayer, convert the DDIA to a regular IA. Send Letter 1961C, Installment Agreement for Direct Debit Form 433-D, to inform the taxpayer of the change and request banking information.

    8. If there was a TIN - Merge, re-input the bank data.

    Negative Confirmation on Bank Information: EFT 18 Listing not timely worked
    1. Access CC EFTAD and determine the date of the EFT 18.

    2. Pull EFT 18 and correct the prenote information. See IRM 5.19.10.9.3, EFT 18 Listing - CSCO Processing.

    3. If unable to locate the EFT 18, convert to a regular IA and send Letter 1961C, Installment Agreement for Direct Debit Form 433-D Not Granted.

    Duplicate Payment Date: Payment date changed within 15 days of scheduled payment due date Notify the taxpayer they should send us this month’s payment via check or money order, and the DDIA will resume the following month.

    Caution:

    Sometimes during computer processing, the payment erroneously is pulled regardless, resulting in two payments taken from the account in a single month.

    Payment Amount: .00
    1. Check CC IADIS, to verify the payment amount.

    2. Correct the payment amount using the information on Form 433-D, if ".00" displays in the payment amount field.

  3. If other error records or notations appear on EFT 10, notify the Computer Branch.

5.19.10.9.6  (10-15-2012)
EFT 14 Listing - CSCO Processing

  1. The EFT 14 Listing is a report generated by the Computer Branch. CSCO receives this report weekly. This listing must be processed within 10 days of receipt.

    • The first part of the report is the "Dropped Account Register" . This listing is a record of all accounts in DDIA status with no DDIA activity for six (6) months

      Note:

      File this listing in reverse chronological order and retain the listing for one year

      .

    • The second part of the report is the "Inactive Accounts List" ; this a list of DDIA accounts in DDIA status with no payments requested within eight cycles.

  2. Review accounts on the "Inactive Accounts List" within five days of receipt to determine why no payment request was generated. This listing is typically small if the EFT 10 and EFT 18 Listings are worked timely.

  3. The most common reason for accounts appearing on this listing is the prenote period did not expire in time to make a payment request or the account is no longer in DDIA status.

    1. Verify the account is in ST 60.

    2. Check CC IADIS, to see if the EFT indicator is off

    3. If indicator is on, take no action

    4. Verify the DDIA information using CC EFTAD, to see if the prenote was input less than 15 days prior to the payment due date.

    5. If the prenote was input less than 15 days prior to the payment due date, take no action.

    6. For all other conditions, notify Computer Services.

  4. EFT 14 also displays a list of "Expected Deposit Dates Not Sent to Bank" ; for related instructions see: IRM 5.19.10.9.2.2, EFT 12 Expected Deposits Not Sent to Bank - CSCO Processing.

5.19.10.9.7  (05-14-2008)
EFT 19 Listing - CSCO Processing

  1. The CSCO liaison requests this listing if they are aware of any financial institution (FI) closure within the campus jurisdiction; the Computer Branch only generates the listing on as needed basis, this listing must be processed within 10 days of receipt.

  2. EFT 19 lists all ABA/Transit Numbers on the EFT database. The listing also includes account information sorted by ABA/Transit Number in ascending order, including:

    • The edited TIN

    • The Taxpayer name

    • A payment date, if applicable

  3. When reviewing the EFT 19, if a taxpayer’s DDIA appears for the ABA/Transit Number of the FI having closed, take the following actions:

    1. Stop the current payment on the EFT File using CC EFTOF.

    2. Revise the IA as a regular IA and stop future DDIA payments by turning off the EFT Indicator.

      Reminder:

      Change the ALN from "03XX" to an appropriate ALN

    3. Send a letter to the taxpayer, with Form 433-D., Installment Agreement, advising them we established an IA and reminder notices are sent monthly. In the unlikely event the reminder is not sent, a payment must still be made prior to the scheduled dated.

      Reminder:

      Request the taxpayer complete the enclosed Form 433-D to establish a new DDIA if they still wish to have a DDIA.

5.19.10.9.8  (05-14-2008)
EFT 20 Listing - CSCO Processing

  1. You may request the Computer Branch generate this report if research is required for accounts dropping off IDRS; use EFT 20 to create a hard copy transcript of all EFT activity occurring on an account, this listing must be processed within 10 days of receipt.

  2. EFT 20 retains the data on an account for up to six (6) months after no longer in DDIA status; after six months, the account is retired to the EFT 14 listing, which is manually researched by CSCO.

    Reminder:

    Use of the EFT 20 is rare and usually needed if the correspondent bank requests the Trace Number of a prenote or payment request; the Trace Number is not displayed on IDRS.

5.19.10.9.9  (05-14-2008)
EFT 28 Listing - CSCO Processing

  1. This listing allows CSCO to verify the information on the EFT file corresponds with the IA file on IDRS. The listing is created semi-annually, in April and October and must be processed within 30 days of receipt.

    Note:

    The DDIA liaison notifies the Computer Branch to run the EFT 2811 Listing in April and October.

  2. The listing includes a summary of accounts in the following categories:

    • The status on the EFT file does not agree with corresponding status on the TIF

    • An active account on the TIF is not on EFT file

    • The taxpayer is on EFT file, but not on the TIF

5.19.10.9.9.1  (02-01-2014)
Status on EFT File Differs from TIF – CSCO Processing

  1. When the status on EFT file differs with TIF data, this indicates the IA displayed on CC EFTAD does not agree with the EFT Indicator displayed on IADIS. Check the ALN displayed on IADIS. It is not necessary to also check EFTAD for this, and:

    If... And... Then...
    The account is an active DDIA, not full paid or defaulted Intentionally left blank Ensure the EFT Indicator is "[1]" . If not, change the EFT indicator to "[1]" .
    The account is an inactive DDIA, full paid or defaulted The EFT Indicator is "[0]" or "[2] " Take no action
    The account is an inactive DDIA, full paid or defaulted The EFT Indicator is "[1]" Change the EFT Indicator to "[0]"

  2. If the ALN indicates the account is no longer a DDIA, ensure the EFT Indicator is "[0]" . If Letter 1961C, Installment Agreement for Direct Debit Form 433-D Not Granted, was not previously sent when the DDIA was converted to a regular IA, send it now, informing the taxpayer:

    • We accepted and processed their agreement.

    • Of the return address if CP 521, Installment Agreement Reminder Notice , is not received and/or the payment address if mailing their payment with a CP 521 using the CSCO campus having jurisdiction.

5.19.10.9.9.2  (02-01-2014)
Active Account on TIF Not on EFT File – CSCO Processing

  1. When an active account is on the TIF, but not on the EFT file, this indicates the account is on IDRS, the EFT indicator is ON, but there is no bank data available on the account.

    1. Check the ALN

    2. Change the EFT indicator to "[0]" if the ALN shows the account is not a DDIA

  2. Follow below for DDIA ALNs.

    If... Then...
    The ALN shows that this should be a DDIA
    1. Pull the Form 433-D, Installment Agreement, and verify that the agreement is a DDIA.

    2. Input the bank account information using CC IAGRE and EFTNT.

    3. Revise the first payment cycle if necessary.

    Form 433D, Installment Agreement, cannot be found Contact the taxpayer to verify information.
    Unable to contact the taxpayer
    1. Convert to a regular IA.

    2. Send Letter 1961C, Installment Agreement for Direct Debit Form 433-D Not Granted.

  3. If the agreement is not a DDIA or the file indicates it should no longer be a DDIA, change the EFT indicator to "[0]" .

5.19.10.9.9.3  (04-28-2008)
Taxpayer on EFT File But Not on TIF – CSCO Processing

  1. When the taxpayer is listed on the EFT File, but is not on the Taxpayer Identification File (TIF), this indicates the account is on the EFT File but not on IDRS. Check the installment status on EFTAD.

  2. If the Payment Status is "[D]" , take no action. The account drops off six months from the last EFT update.

  3. If any status other than "[D]" displays, notify the appropriate point of contact in Headquarters Information Technology(IT).

5.19.10.9.10  (04-28-2008)
Purging the Direct Debit Installment Agreement File and Disposition of Cases

  1. This subsection provides instructions for purging, or pulling and disposing of documents for DDIA files.

  2. There are two type of purges:

    • Weekly Purge: Accounts identified on the Installment Agreement Accounts List (IAAL)

    • Yearly Purge: All accounts in the IA file

  3. Purge the IA file every twelve months, using one of the following methods:

    • Pull all cases simultaneously

    • Pull cases by alpha throughout the year. Pull one alpha file every two weeks

  4. Verify the status of each case on IDRS and dispose of the documents as follows:

    If... Then...
    An open DDIA in any ST 6X Refile the document
    Not in ST 6X, but has a balance due Destroy the document
    Closed (ST 12) Destroy the document

5.19.10.10  (02-01-2014)
Installment Agreement Accounts List (IAAL)

  1. The IAT tools as listed in IRM 5.19.10.1, Compliance Services Collection Operation Transcript Overview must be used by Campus Compliance employees for procedures outlined in this IRM. When an action must be taken and an IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate due to a specific situation, the case should be worked without the tool, using IDRS. For more information on each tool as well as a job aid for each tool see the IAT Website.

  2. This subsection provides procedures for working accounts appearing on the IAAL. Each week, the CSCO Operation receives an IAAL which contains installment agreements with changes on a ST 60 account.

5.19.10.10.1  (02-01-2014)
IAAL Processing Time Frames and Dispositions – CSCO Processing

  1. Work the IAAL upon receipt based on the Installment Agreement Priority Listing. For additional information see Exhibit 5.19.10-4, IAAL Prioritization List.

  2. Complete ALL actions within established time frames based on tier assignment of each category.

    Exception:

    The above guidelines exclude the MFT 31 category: see IRM 5.19.10.10.13, MFT 31 Category on the IAAL.

  3. Annotate each account on the IAAL. Documentation on AMS should indicate IAAL processing and actions taken on accounts.

    Example:

    IAAL: Reinstated, Defaulted, etc.

  4. AMS documentation is not required for cases closed through GII. If a case is closed by GII, documentation of actions taken can be found on ENMOD.

5.19.10.10.1.1  (09-15-2010)
Multiple-Condition Cases

  1. Review the history items on IDRS using CC ENMOD and/or AMS for all multiple-condition cases.

  2. Cases with Agreement Locator Number (ALN) "12XX" are field or ACS multiple-condition cases.

  3. Cases with Agreement Locator Number (ALN) "92XX" are campus multiple-condition cases.

  4. When working a case with a multiple condition ALN, research AMS/ENMOD to find the conditions not represented in the ALN and address both conditions.

    Example:

    XREF IA, "XX63" , with a backup-53, "XX53" , use ALN "9263" and a history instructing to CNC the account in case of default.

5.19.10.10.1.2  (02-01-2014)
Revising or Reinstating Accounts on the IAAL

  1. Reinstate an IA using CC IAGRE. For managerial approval requirements, see IRM 5.19.1.5.4.8, IA Managerial Approval.

  2. Re-input cross reference TINs (SSN or EIN) if included in the IA. Do not charge any additional user fee, including original or reinstatement, on these accounts.

  3. Re-input a three-year review date on IMF only, BMF Trust Fund. see IRM 5.14.11.5, Considerations after Default or Termination, Including Reinstatement.

  4. Re-input the EFT indicator on DDIA. For additional information see IRM 5.19.1.10, DDIA Monitoring Procedures - CSCO Processing.

  5. Update the ALN as appropriate.

    Example:

    The ALN is "0136" and CSCO reinstates the agreement; update the ALN to "9036"

  6. Update the appropriate User Fee code. For additional information see IRM 5.19.1-13, IA User Fee Codes.

5.19.10.10.2  (04-28-2008)
IAAL Full Paid Category

  1. All accounts reaching full-paid, ST 12, during the week displayed on the weekly IAAL, process these accounts as follows.

  2. No action is required on Full Paid accounts with the following exceptions:

    ALN... Agreement Type...
    XX27 Restricted P&I Accounts
    XX08 Continuous Wage Levy
    11XX Payroll Deduction Agreement (PDIA)
    XX32 Anticipated Debit Module
    12XX Multiple Conditions
    91XX Payroll Deduction Agreement (PDIA)
    XX12 Partial Pay Agreement (PPIA) with all CSEDs expired
    92XX Multiple Conditions

5.19.10.10.2.1  (02-01-2014)
Full Paid Restricted Interest and Penalty Accounts

  1. Installment Agreements under the Restricted Interest and Penalty Category on the IAAL, include modules that contain restricted interest and/or FTP penalty, which must be assessed and collected. Each restricted module appears on the IAAL when updated to ST 12.

  2. If any module contains a posted TC 608, the module's last CSED has expired. TC 608 generates a G− and/or −I freeze and appears on the IAAL if account is in ST 6X. GII systemically closes these accounts and places a history "GII-IAAL" and "GIICSEDEXP" on CC ENMOD.

  3. Research IDRS to determine which tax period(s) caused the account to appear on the IAAL. The tax period(s) to be addressed will have a FTP penalty freeze and/or interest freeze, with or without a B− freeze. See Document 6209, Section 8A.- 4, Master File Freeze Codes and IDRS Status 48 for the B− freeze. Determine if accruals were assessed and collected:

    If... Then...
    No additional interest or penalty adjustment is necessary Input TC 290 for .00 with blocking series 05 (Use Blocking Series 00 if you have original return) and Hold Code (HC) 3.
    There are modules where accruals were not assessed and collected, and there are more than six months remaining on the CSED
    1. Research the account following the above procedures in paragraph 2.

    2. re-compute the interest or FTP using DMI, or CC COMPA/COMPAD allowing for all applicable waivers, suspensions and rate changes, to the current 23C date. See IRM 20.1, Penalty Handbook and IRM 20.2, Interest, for more detailed instructions.

    3. Assess accruals or correct the penalty or interest using CC ADJ54 in blocking 05 (unless you ordered the document from files.) and HC 0. Do not create a balance due on the tax period of less than ≡ as described in IRM 21.3.1.4.51.2, Adjusting CP 86 Accounts.

    4. If the available credit is more than the additional amount due, assess only the additional amount and let the remainder refund or offset.

    5. Reinstate the agreement using CC IAGRE. Revise the installment agreement locator number to XX32. Change the assessment indicator to "1" , allowing the new assessment to post without suspending the agreement.

      Note:


      Enter a history on AMS indicating the additional assessment amount and actions taken. If the response is IAPND, reinstate the agreement by using IADIS information.

    6. Send the appropriate letter to inform the taxpayer of the changes.

    7. Waive the user fee and annotate AMS with the reason if all applicable fees have been paid.

    The only modules in which accruals were not assessed and collected have less than six months remaining on the CSED No action is required if the balance is zero on that tax period. If there is a credit on the module, resolve the credit by assessing any penalty or interest due, up to the credit amount. If no additional penalty or interest is due, input a TC 290 .00.
    Accruals were assessed and collected on all modules No action is required.

5.19.10.10.2.2  (02-01-2014)
Full Paid Continuous Wage Levy Accounts

  1. It is imperative the wage levy is released immediately when the account becomes full paid. Whenever possible levy releases should be faxed to the employer to prevent collection of excess levy proceeds. See IRM 11.3.1.11, Facsimile Transmission of Tax Information, for guidelines.

  2. Determine the levy source from the CC IADIS record. If not found, review the following for levy source data. Update AMS with the levy source when found.

    • CC ENMOD and CC TXMOD history

    • AMS history

    • RTR System to view payment documents

    • CC LEVYE

    • ACS archives. If CWL was established by ACS per the Originator Code or ALN on CC IADIS, contact the ACS Support Liaison under SERP Who/Where.

  3. Process accounts with a continuous wage levy, Agreement Locator Number "XX08" as follows:

    If... And... Then...
    The account is full paid, including accruals of P&I
    • The previous levy release shows on CC ENMOD or elsewhere
      and

    • No payments are being received

    No action is required.
    The account is full paid, including accruals of P&I
    • No levy release shows on CC ENMOD or elsewhere
      OR

    • Payments are still being received AND the levy source can be determined

    1. Prepare a release of the levy on wages, Form 668-D, Release of Levy/Release of Property From Levy. For levy release procedures, see IRM 5.19.4.4.10, Levy Release: General Information.

    2. Fax Part 1 to the employer if the number is available, otherwise Mail Part 1 to the employer

    3. Mail Part 2 to the taxpayer

    4. Retain Part 3 in a file for one year.,

    The account is full paid, including accruals of P&I No levy release is shown and the levy source can NOT be determined
    1. Make two attempts to contact the taxpayer to identify the levy source and the number to fax the release. If unable to obtain the information send Letter 2571C, To Employer: Discontinue/Adjust Payroll Deduction, to the taxpayer authorizing the release of the continuous wage levy.

    2. Advise the taxpayer to give their employer a copy of the letter if unable to fax.

    The account is not full paid, including accruals of P&I Restricted interest and/or penalty was not assessed
    1. Follow procedures for computing and assessing accruals in IRM 5.19.10.10.2.1, Full Paid Restricted Interest and Penalty Accounts.

    2. Reinstate the IA and change the assessment indicator to "1" . ALN should be "XX08" .

    3. Waive the User Fee.

5.19.10.10.2.3  (09-15-2010)
Cross-Referenced TINs on Status 60 Accounts

  1. If the cross reference account is in ST 63, update the IA to ST 60. Do not charge any additional user fee, for original or reinstatement, on ST 63 accounts. Keep the same user fee on the cross reference agreement.

  2. Update the ALN

    Example:

    "9063" becomes "9036" if streamlined.

  3. If the cross reference TIN is full paid, take no action.

  4. Review history items on ENMOD or AMS. If the agreement was a PPIA, history item, "PPIA/xref" should display. When setting up the cross-referenced TIN on a PPIA:

    1. Use the appropriate ALN; for additional information
      See IRM 5.19.1-11, ALNs.

    2. Use a PPIA indicator of "2" .

    3. Use a Review Suppress Indicator (RSI) of "5" for IMF and "6" for BMF.

    4. Use the review cycle shown on the original TIN

      Exception:

      If the only remaining modules all contain a CSED expiring sooner than the original review cycle, use an RSI of "6" and a review cycle coinciding with the date the CSED expires. The case generates on the IAAL so a letter may be sent informing the taxpayer payments are not required.

5.19.10.10.2.4  (02-01-2014)
Full Paid Payroll Deduction Agreements – CSCO Processing

  1. Notify the employer to discontinue payments if the payroll deduction installment agreement (PDIA) is full paid early because of a credit offset, or similar condition. Use Letter 2571C, To Employer: Discontinue/Adjust Payroll Deduction.

  2. Send Letter 2571C, To Employer: Discontinue/Adjust Payroll Deduction, to the employer if accruals are assessed on a restricted penalty and/or interest module in addition to the letter sent to the taxpayer regarding the assessment.

    Note:

    Letter 3230C, Third Party Contact Letter and Letter 3230SP, Third Party Contact Letter - Spanish Version, are not required on Full Paid accounts.

5.19.10.10.2.5  (10-15-2012)
Previous Agreement Full Paid with Anticipated Debit Module (XX32) – CSCO Processing

  1. Process these accounts per established guidelines: see IRM 5.19.10.10.3.4, Anticipated Debits on the IAAL.

5.19.10.10.2.6  (04-28-2008)
Expired CSED – Partial Payment Installment Agreements

  1. When the CSED expires on the final module of a PPIA, the account is listed on the IAAL in the full paid category; work these accounts as follows.

  2. Review the account to confirm the CSED is expiring on the final module of the PPIA. Send Letter 3127C, Revision/Reinstatement to Installment Agreement, informing the taxpayer the CSED is about to expire, and they are not required to make payments, but they may make voluntary payments.

  3. It is possible a PPIA can be full paid due to unanticipated payment or offset; no action is necessary on these cases.

5.19.10.10.3  (04-28-2008)
IAAL Suspended and Suspended Over 4 Weeks (Status 61)

  1. When certain changes occur on an account in ST 60, the agreement suspends. The account updates to ST 61 and appears in the "Suspended" category on the IAAL. If required action is not taken on accounts in the suspended category, the account reappears every four weeks on the IAAL in the "ST 61 over 4 Weeks" category.

  2. Taxpayers do not receive reminder notices while their accounts are in ST 61. It is extremely important to work these cases as quickly as possible. See Exhibit 5.19.10-4, IAAL Prioritization List.

5.19.10.10.3.1  (02-01-2014)
Suspended — Pre-Bal or Expired Pre-Assessed Installment Agreement (PreIA)

  1. Pending Installment Agreements appear on the IAAL for two reasons:

    • The preassessed module(s) was/were not the actual balance due posted and the monthly payment or balance does not meet streamlined criteria.

    • The return or proposed assessment does not post after 16 cycles (EXPRE).

  2. To input corrections or suspend a PreIA, nullify the IA using CC IADFL, suppress the default notice, and reinstate the IA or extend the PreIA for an additional 16 cycles:

    1. To revise a PreIA to include an assessed module(s), first nullify the IA and suppress the default notice, using Review Action "3" , and reinstate it, using Review Action "1" .

    2. To extend a PreIA, use Review Action "2" .

  3. Take the following actions:

    If... Then...
    The payment amount is less than the 1/72 criteria (Pre-Bal)

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. If the payment is not the same as the original agreement or the taxpayer does not propose a new monthly payment, determine the payment amount to meet the 1/72 criteria.

    2. Send Letter 2273C, Installment Agreement Accepted - Terms Explained, advising the taxpayer of the revised payment amount and to call or write if the taxpayer agrees with the new monthly payment amount.

    3. Include Form 433-F, Collection/Information Statement, and advise the taxpayer to complete the form and return it only if they do not agree with the revised monthly payment amount

    4. Warn the taxpayer that enforcement action may be taken if response is not received within 15 days of the date of the letter.

    5. Input STAUP 22 05

    The balance due is above ≡ ≡ ≡ ≡ ≡ ≡ ≡ (for IMF and Out of Business (OOB) Sole Proprietor) Reject the IA request and send Form 433-F, Collection/Information Statement. For additional information: see IRM 5.19.1.5.4.9, IA Rejection Criteria.
    The anticipated module is paid in full Take no action
    • The taxpayer did not yet file a return
      and

    • There is no TC 460 dated just before or any time after the PreIA was input

    Take no action
    • Any module on SUMRY is in ST 26
      and

    • The collection assignment is to a RO

    Take no action
    All modules on SUMRY are in ST 71 or 72 Take no action
    The proposed assessment is still pending on IDRS, but there is an open control to ASFR, AUR or Examination Extend the agreement
    The return has not posted because the TC 150, 290 or 300 went unpostable on TXMOD Extend the agreement
    • The assessment posted and the PreIA was a Full Pay Request agreement and account not full paid
      and

    • The due date for full payment plus two additional cycles has not passed

    Input a STAUP 22 for two cycles beyond the scheduled full payment date on the module
    The name controls on IDRS or MF do not match

    Reminder:

    Make sure the agreement was input for the intended taxpayer.

    1. If the IA was input on the wrong account, establish the IA under the correct account

    2. If the IA was input on the correct account, nullify the IA, suppressing the default notice. Correct the name control on IDRS. Reinstate the IA.

    3. If the correct account is unknown, take no action

    The anticipated module is in ST 23 or 53 on SUMRY
    1. There is an un-reversed TC 530 newer than the date the PreIA was input. Take no action.

    2. There is an older un-reversed TC 530. Reverse with a TC 531. Nullify the original agreement and reinstate the IA.

    The anticipated module is in ST 23 and/or CNC on MF only
    1. There is an un-reversed TC 530 newer than the date of the PreIA was input. Take no action.

    2. There is an older un-reversed TC 530. You must nullify the original agreement and reinstate the IA first, then reverse the TC 530 with the TC 531.

    There is any other open control base Determine whether it is necessary to make contact before taking any action on the account
    You cannot determine the reason why the PreIA expired Extend the IA unless it was previously extended once; otherwise take no action

5.19.10.10.3.2  (02-01-2014)
Suspended for New Assessment

  1. There are several different reasons an account suspends. The next proper action depends primarily on the reason the account suspended. CC IADIS indicates the reason for the suspension:

    • The assessment indicator only pulls in a new assessment if it posts within ten cycles from the cycle the assessment indicator was turned on.

    • Accruals only assessments, TC 276 and TC 196, do not appear on the IAAL Suspended Category.

    • If reinstating the IA, to allow an additional future assessment to be included in the agreement, input the assessment indicator on the IA.

  2. A new module, or "New Mod" , is the most common reason for an account to suspend:

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    If... Then...
    The assessed balance, including the new assessment, meets streamlined criteria per IRM 5.19.1.5.4(9), IAs or meets the guidelines for an In-Business Trust Fund Express Agreement per IRM 5.19.1.5.4.2, IA Requirements IBTF Express Agreement and taxpayer is in full compliance with filing requirements
    See also IRM 5.19.1.1.6, Case Processing Authority Levels and Exhibit 5.19.1–11, ALNs.
    1. Reinstate the IA.

    2. Send the appropriate letter and inform the taxpayer that the new module has been included and payments have not changed.

    3. Charge the appropriate User Fee per IRM 5.19.1.5.4.6(9) and 10), IA Payment Methods and User Fees (UF) Overview.


    Exception:

    If the agreement is a DDIA or PDIA, default the agreement. Do not include the new module in the IA.

    The new module is fully paid Reinstate the IA
    The IA is fully paid, everything except the new mod Input CC STAUP on the new module, moving it from suspended status into the notice stream as follows:
    STAUP 56 01 (IMF)
    STAUP 58 01 (BMF)
    All others Take the appropriate action depending on if working an IA, extension or CTWL in the IRM subsections to follow.

5.19.10.10.3.3  (02-01-2014)
Unanticipated Debits on the IAAL

  1. Research IDRS using CC SUMRY and CC TXMOD to determine which debit posted. All modules are in ST 61 including the new assessment.

    Note:

    There are IMF modules on the IAAL that default and have an aggregate unpaid balance of assessment of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .Allow these cases to default. Do not follow the procedures in IRM 5.19.1.5.4.5, Account Statuses Affecting IAs. Put comments on AMS "Exceeds Campus Authority" . This should allow the account to send the taxpayer a CP 523.

  2. Only SB/SE and WI CSCO Operation(s) assigned to work DDIA agreements may input and revise DDIAs.

  3. Prior to reinstating the agreement you must check the CSED to determine if the module(s) will full pay before the existing CSED expires; for additional information see IRM 25.6.1.12, Collection Statute Expiration Date (CSED).

  4. Reinstate the agreement using CC IAGRE and waive the User Fee if the new debt is paid or any of the conditions in the list below are met:

    • Has a history on ENMOD, TXMOD or AMS that the new debit should be included but the ALN is not "XX32"

    • Is for the tax period during which the IA was established and the account balance is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Requires no more than two additional monthly payments

    • Results from penalties and interest, and/or assessments of tax for periods covered by the agreement. If the new debit brings the total balance due at or above ≡ ≡ ≡ ≡ ≡ ≡ , managerial approval is required.

    • Is for ≡ ≡ ≡ ≡ or less

  5. If none of the conditions in (4) are met and the assessed balance, including the new debit, meets streamlined criteria, follow IRM 5.19.10.10.3.2(2), Suspended for New Assessment.

  6. If you determine that the taxpayer has an unfiled return(s), DO NOT default the IA if conditions meet one of the criteria above. Because an IA has already been granted to the taxpayer we cannot now default the IA for an unfiled return.

  7. Default the agreement if the account does not meet conditions outlined above; use CC IADFL with default category "NEW MOD."

5.19.10.10.3.4  (02-01-2014)
Anticipated Debits on the IAAL

  1. Reinstate the agreement using CC IAGRE if the debit was anticipated or the Agreement Locator Number (ALN) is "XX32" . Waive the user fee and enter a history on ENMOD of, "Fee Waived" and annotate the reason on AMS.

    Note:

    If the IA was recently revised and the revision User Fee has not been paid, do not waive the user fee. Taxpayer is liable to pay the revision user fee charge.

  2. Take the following actions:

    If... And... Then...
    • The ALN is "XX32"

    • There are still assessed modules with a balance due

    History items on CC ENMOD, TXMOD or AMS indicate the new module was anticipated
    1. Reinstate the agreement.

    2. Change the ALN to the appropriate number.

    • The ALN was "XX32"

    • The assessed modules were full paid, but the new assessment is not yet assessed

    Example:


    Anticipated debt on next year's return due to nonpayment of ES Taxes, open control for AUR, ASFR, or Examination, etc.

    • History items on CC ENMOD, TXMOD or AMS indicate the new module was anticipated

    • AMS shows the proposed amount of the new assessment

    1. Reinstate the agreement using CC IAPND.

    2. Waive the user fee, as this was intended to be a part of the existing IA when established.

    3. Input a User Fee Code of "5" and input history on ENMOD of, "Fee Waived" .

    4. Annotate AMS with the reason.

    • The ALN was "XX32"

    • The assessed modules were paid, but the new assessment is not yet assessed

    Example:


    Anticipated debt on next year's return due to nonpayment of ES Taxes, open control for AUR, ASFR, or Examination, etc.

    • History items on CC ENMOD, TXMOD, or AMS indicate if the new module was anticipated.

    • AMS does not show the proposed amount of the new assessment.

    • And you are unable to determine the amount of the proposed assessment.

    1. Do not reinstate the IA.

    2. Send the taxpayer Letter 2272C, Installment Agreement Cannot Be Considered, with Form 9465, Installment Agreement Request.

    3. Advise the taxpayer to send Form 9465 when they receive a bill for the new assessment.

    The new account balance totals more than ≡ ≡ ≡ ≡ ≡ (for IMF and OOB Sole Proprietor) The total balance can be paid within 72 months
    1. Determine if a lien should be filed.

    2. Send Letter 2603C, Installment Agreement Accepted-Notice of Federal Tax Lien Will be Filed, notifying the taxpayer of our intent to file a lien.

    3. Input a history item on CC ENMOD.

    4. Request a lien after 30 days if the taxpayer does not respond.

    5. Open a control base to monitor for lien filing.

    New liability brings the total balance above ≡ ≡ ≡ ≡ ≡ ≡ ≡ (for IMF and OOB Sole Proprietor) One payment will bring it within SIA Reinstate only as DDIA
    New liability brings the total balance above ≡ ≡ ≡ ≡ ≡ (for IMF and OOB Sole Proprietor) One payment will not bring to within SIA
    1. Input STAUP 2209.

    2. Send Form 433-F, Collection/Information Statement or Form 433-B, Collection Information Statement for Businesses.

5.19.10.10.3.5  (09-15-2010)
New Debit Extends Agreement Beyond CSED – CSCO Processing

  1. Check history items on ENMOD or AMS. If new debit is indicated it was included in PPIA proposal (financial secured), reinstate the agreement; for additional information: see IRM 5.19.1.5.5, PPIA.

  2. If there is no indication the new debit was included in a PPIA, default the account using CC IADFL and input STAUP 2201, allowing the case to go to ACS.

5.19.10.10.3.6  (02-01-2014)
New Debit on Continuous Wage Levy – CSCO Processing

  1. Continuous Wage Levies are identified by the Agreement Locator Number (ALN) XX08. Take the following actions:

    1. Default the account using CC IADFL

    2. Input STAUP 2200

    3. ASGNI/ASGNB 0120; for input procedures see IRM 2.4.27, Command Code ASGNI/ASGNB formerly TSIGN.

5.19.10.10.4  (02-01-2014)
IAAL Defaulted Category (Status 64)

  1. The account appears on the IAAL five cycles after it updates to ST 64 if no action occurs in the interim. Process these accounts immediately to prevent Taxpayer’s Delinquent Account (TDA) issuance in seven (7) cycles.

    Note:

    There are IMF modules on the IAAL that default and have an aggregate unpaid balance of assessment of $100,000-$999,999. Allow these cases to default. Do not follow the procedures in IRM 5.19.1.5.4.5, Account Statuses Affecting IAs. Put comments on AMS "Exceeds Campus Authority" . CP 523s are issued when account goes into ST 64

  2. The IA defaults and the status changes from ST 60, and ST 63 in some instances, to ST 64 when the following conditions occur:

    Installment Agreement Action Description
    DEFAULTED-PMT INS The required payment was not made
    DEFAULTED-BAD CHK The payment was dishonored
    DEFAULTED-F/S OLD Failure to provide requested financial information
    DEFAULTED-C/R DFL A manual default was input using CC IADFL due to a default on a cross reference account
    DEFAULTED-NEW MOD A new balance due module appears on the account
    DEFAULTED-TDA MOD A balance due module updates to TDA status
    DEFAULTED-OTHER A manual default was input using CC IADFL for all other conditions. This includes accounts defaulting out of the Suspended category.

  3. See the IRM references below for accounts with the following characteristics displayed on the IAAL:

    • Payroll Deduction: ALN "11XX" and "91XX" : see IRM 5.19.10.10.4.1, Defaulted Payroll Deduction Agreements/Payment Missing

    • Continuous Wage Levies: ALN "XX08" : See IRM 5.19.10.10.4.2, Defaulted Continuous Wage Levy

    • Cross reference Accounts: Identified as "CR TINS" , ST 63: See IRM 5.19.10.10.4.3, Defaulted Installment Agreement with Cross Reference TIN

    • Currently Not Collectible (CNC): ALN "XX53" : See IRM 5.19.10.10.4.4, Defaulted with Backup 53 (ALN XX53)

    • Partial Payment Installment Agreements: ALN "12" : See IRM 5.19.10.10.4.4, Defaulted with Backup 53 (ALN XX53)

  4. For all other above deferral accounts appearing under the categories DEFAULTED-PMT INS and DEFAULTED-BAD CHK see below.

    If... Then...
    Required payment is missing
    1. Research account, and any cross reference accounts, for payment.

    2. If payment is located, transfer it, if appropriate.

    3. Reinstate the agreement.

    4. Waive the User Fee.

    5. Annotate AMS with comments.

    Payment was dishonored
    1. Research account, to determine if taxpayer made up dishonored payment.

    2. Reinstate the agreement.

    3. Advise the taxpayer of the User Fee.

    4. Annotate AMS with comments.

  5. For accounts below deferral amounts shown in IRM 5.19.1.1.6, Case Processing Authority Levels:

    1. If there are cross-referenced accounts, take all modules into consideration when determining deferral.

    2. Work any accounts that are PDIA, Wage Levy, or Federal Employee/Retiree (FERDI, denoted by "FED—EMP-F" under the appropriate IAAL procedures

    3. For all other below deferral accounts, take no action.

5.19.10.10.4.1  (09-15-2010)
Defaulted Payroll Deduction Agreements/Payment Missing

  1. Make two phone attempts during the day you work the case; make an attempt to determine why we did not receive the payment, to both:

    • The employer, during the day

    • The taxpayer, during the evening

  2. Do not hold the case for a return call. Do not reinstate the agreement if unable to reach the employer or the taxpayer. Document on AMS, "unable to contact" .

  3. Take the following actions based on the response from the employer or taxpayer:

    If... And... Then...
    The employer/taxpayer indicates payments were made N/A
    1. Initiate payment tracer action. If payment located, transfer if appropriate

    2. Reinstate the agreement.

    3. Waive the User Fee.

    4. Enter literal on ENMOD.

    5. and Annotate AMS with reason.

    The employer/taxpayer indicates the taxpayer was temporarily laid off The taxpayer will return to work before the next monthly payment is due or the following month
    1. Reinstate the agreement.

    2. Input the name, address and telephone number, if available, if the employer information is not already on IAGRE. Reinput the ALN to activate the generation of the systemic letter when the account becomes full paid.

    3. Update the next payment due cycle, if necessary.

    4. Send Letter 2273C, Installment Agreement Accepted-Terms Explained, informing the taxpayer the IA was reinstated. Advise them of $45 User Fee.

    5. If the taxpayer contacts us, advise them to contact their employer to start sending payments on the agreed payment date.

    The employer/taxpayer indicates they temporarily laid off the taxpayer The taxpayer will not return to work before the next monthly payment is due, or the following month Do not reinstate the agreement.
    The employer indicates the taxpayer no longer works there N/A
    1. Do not reinstate the agreement.

    2. Delete the levy source and telephone number, if applicable.

5.19.10.10.4.2  (02-01-2014)
Defaulted Continuous Wage Levy

  1. Review IDRS for payments on defaulted continuous wage levies.

  2. Reinstate the Continuous Wage Levy if the levy source is making payments, but are less than the amount shown on the original agreement. Change the monthly payment amount to the amount currently received each month.

  3. Contact the employer regarding the missing payments if they are not found on the account:

    If the employer indicates... And... Then...
    Payments were sent N/A
    1. Initiate payment tracer action and reinstate the agreement.

    2. Waive the User Fee.

    3. Update AMS history.

    The taxpayer is temporarily laid off The taxpayer will return to work before the next monthly payment is due, or the following month
    1. Reinstate the agreement and update the payment due cycle, if necessary.

    2. Waive the User Fee.

    3. Update AMS history.

    The taxpayer is temporarily laid off The taxpayer will not return to work before the next monthly payment is due, or the following month
    1. Review IDRS for the previous assignment number.

    2. If a field assignment, input CC ASGNI with an assignment number of "6466" .

    3. All others, input STAUP 2200 and ASGNI "0120" .

  4. If unable to reach the employer after two attempts, review IDRS for the previous assignment number:

    1. If field assignment, input CC ASGNI with assignment number of 6466

    2. All others input STAUP 22 00 and ASGNI 0120

5.19.10.10.4.3  (04-28-2008)
Defaulted Installment Agreement with Cross Reference TIN

  1. Input CC STAUP for 07 cycles on all modules on the cross reference TIN if the account will not be reinstated.

  2. Reinstate the cross reference TIN to ST 63 if the IA is reinstated.

5.19.10.10.4.4  (02-01-2014)
Defaulted with Backup 53 (ALN XX53)

  1. These accounts include instances where a determination of CNC is made as backup to the IA in case of default. These accounts are established with an Agreement Locator Number (ALN) of "XX53" . Partial Payment Installment Agreements may also have a backup 53 indicated as a history item on CC ENMOD or in AMS narrative.

  2. Process these accounts as follows:

    If... And... Then...
    • The reason for default is payment insufficient or bad check
      and

    • The Collection Information Statement (CIS), if required, is less than twelve months old

    Form 53, Report of Currently Not Collectible Taxes, or AMS narrative, does reflect managerial approval Input TC 530 with the closing code shown in the AMS narrative
    • The reason for default is payment insufficient or bad check
      and

    • The Collection Information Statement (CIS), if required, is less than twelve months old

    Form 53, Report of Currently Not Collectible Taxes, or AMS narrative does not reflect managerial approval
    1. Secure managerial approval.

    2. Input TC 530 as referenced above.

    • The CNC information is incomplete or data cannot be located
      and

    • The Collection Information Statement or Financial Screen, if required, is over twelve months old

    N/A
    1. Send Letter 484C, Collection Information Statement Requested (Form 433-F/Form 433-D) Inability to Pay/Transfer.

    2. Enclose Form 433-F or Form 433-B, for determination.

    3. Input STAUP 2206.

    The IA is for a deceased taxpayer account N/A
    1. Input TC 530 cc 08.

    2. Release the 130 freeze.

    A Partial Payment IA, ALN "12"
    • There is a backup 53 history item on ENMOD of "PPIA/CNCXX "
      or

    • In AMS history, usually at the bottom of the financial statement

    1. The "XX" reflects one of the TC 530 action codes of 24 to 32.

    2. Input the appropriate TC 530 if the history item is present on ENMOD or on AMS.

    3. Take no action if there is no history item to reflect the backup 53.

5.19.10.10.4.5  (04-28-2008)
IAAL Out of Campus Accounts – CSCO Processing

  1. Transfer out of campus taxpayer accounts to the appropriate campus for the taxpayer; for procedures: see IRM 5.19.1.3.1, Account Actions on Referral/Redirects.

5.19.10.10.5  (02-01-2014)
IAAL Deferred Agreement Over One Year (Status 63) – CSCO Processing

  1. When an IA is input to an account and a cross reference TIN is input, the cross reference account updates to ST 63. No payment reminders are sent and payment analysis is not made on these accounts. If the account is in ST 63 for one year with no update, it appears on the IAAL for review:

    If... Then...
    The related cross reference account is still in ST 60 Take no action
    The related cross reference account is in ST 22, 24 or 26
    1. Default the ST 63 account using CC IADFL.

    2. Input STAUP 2201 to issue the TDA.

    The related cross reference account is in ST 53 Update the ST 63 account to ST 53.
    The related cross reference account is in ST 12, full paid Update the ST 63 account to ST 60 using CC IAGRE.
    The related cross reference account is in a status other than ST 22, 60 or 12 Review the history items and payment history on the related cross reference account to determine if the ST 63 account should be defaulted or updated to ST 60.

5.19.10.10.6  (10-15-2012)
IAAL Review Agreements

  1. Accounts which display on the IAAL in category "Review Agreements" are those which had an indicator input to suppress the agreement review notice when the IA was established. These accounts generate to the IAAL two cycles prior to the agreement review cycle.

  2. All accounts, which appear under Review Agreements during the week, will display on the weekly IAAL or, a CP 522 notice is received for review. Work these accounts as follows:

    If... Then...
    A continuous wage levy, refund to full pay the account, or restricted interest and/or penalty Follow the instructions in the next subsections of this IRM.
    Partial Payment Installment Agreement with ALN "12" of PPIA indicator These accounts are monitored by the field's CCP. through IAT. See IRM 5.4.11.5, Installment Agreements Monitored by Integrated Automation Technologies (IAT). Cases not meeting systemic parameters of the IAT monitoring process will be generated on a Manual Action List (MAL). Advise your manager if these installment agreements appear on the CSCO IAAL.
    All others
    1. Update next review cycle for "3" years, or 156 cycles

    2. Change the "Suppress Rev Notice" Indicator to "1" .

    3. Reinstate to ST 60.

    4. Destroy the notice.

5.19.10.10.6.1  (10-15-2012)
IAAL Review of Continuous Wage Levy – CSCO Processing

  1. Process Agreement Locator Number "XX08" , Continuous Wage Levy, accounts as follows:

    If... And... Then...
    The remaining balance due, including accruals, is less than the monthly payment amount N/A Send Form 688-D, Release of Levy on Wages, Salary and Other Income, to the employer showing the remaining balance due. For levy release procedures see IRM 5.19.4.4.10, Levy Release: General Information.
    The remaining balance due is larger than the monthly payment amount For Legacy Cases Only: The account will not be full paid before the CSED and the levy form was annotated, "Monitor Levy as IA, Unable to Secure Form 900."
    1. Input a new review date one month before the CSED expires.

    2. Input a Suppress Review Notice Indicator of "5" for bypass of the ≡ ≡ ≡ ≡ analysis.

    The remaining balance due is larger than the monthly payment amount The CSED expires in 30 - 60 days Send a levy release to the employer advising one additional payment should be made. For levy release procedures see IRM 5.19.4.4.10, Levy Release: General Information.

5.19.10.10.6.2  (02-01-2014)
IAAL Review for Refund to Full Pay Account – CSCO Processing

  1. Accounts appear on the IAAL for review when a refund is expected to full pay the account and the refund did not appear on the account. Research IDRS and Master File to determine if the return was filed:

    If... And... Then...
    • Return was filed
      or

    • Did not post and you cannot determine if it was filed

    Did not full pay the account
    1. Update the IA showing the original payment amount as the payment amount on CC IADIS.

    2. Allow reminder notices to issue.

5.19.10.10.6.3  (02-01-2014)
IAAL Review of Restricted Interest and Penalty Accounts – CSCO Processing

  1. Compute and assess restricted interest and/or penalty accounts with ALN "XX27" ; for procedures to compute restricted interest and/or penalty: see IRM 5.19.10.10.2.1, Full Paid Restricted Interest and Penalty Accounts.

  2. Turn the assessment indicator on with CC IAGRE.

5.19.10.10.7  (02-01-2014)
Litigation Module on the IAAL – CSCO Processing

  1. Accounts displaying on the IAAL in Litigation must be reviewed on IDRS. Accounts are on the IAAL due to a pending TC 520, usually with a Bankruptcy Closing Code. If due to a TC 520 with a Litigation Closing Code, no action is necessary.

  2. Bankruptcy modules are identified with TC 520 closing codes 81, 83, 60 through 67, or 85. Only closing codes 81, 60, 62, 64 and 66 allow post-petition tax years to remain in ST 60 or progress to collection status if IA is default.

  3. For any module already in ST 72, or in ST 60 with a pending TC 520 and a bankruptcy closing code, take no action.

  4. For any module in ST 61, with no pending or posted TC 520 with a bankruptcy closing code, default the agreement using IADFL, with default category "OTHER" and input STAUP 2200.

  5. Bankruptcy only suspends the IA for the duration of the bankruptcy. At the conclusion of the bankruptcy Insolvency takes the following actions:

    1. Input TC 521s to reverse all open TC 520s

    2. Request reinstatement of the IA and waive the user fee generally with Form 4844, Request for Terminal Action, with copies of the prior agreement IADIS prints as attachments

5.19.10.10.8  (02-01-2014)
IAAL TC 914 on Agreement – CSCO Processing

  1. If a TC 914 appears on the IAAL, forward the account to the campus RO for contact with CI to determine if:

    • The IA should continue

    • ST 91 (CI Hold) should be input

    Note:

    If your campus does not have an in-house RO, forward to the CI function.

5.19.10.10.9  (02-01-2014)
IAAL Account Transferred – CSCO Processing

  1. Take no action on accounts transferred:

    • In accordance with current procedures: in IRM 5.19.1.3.1, Account Actions on Referral/Redirects.
      or

    • When the case defaulted and the account was transferred

  2. Accounts appearing on the IAAL under the following titles are accounts where the Collection Location Code (CLC) is being changed with a Doc Code 50:

    • "PAYROLLDIA TRANSFER"

    • "WAGE LEVY TRANSFER"

    • "CNC TRANSFER"

  3. Review the history on CC IADIS for the following:

    " XFERXX XX"

    Note:

    The first "XX" indicates the site the account came from; the second "XX" indicates the gaining site.

    Example:

    "XFER29 49 "

  4. Locate the paper file related to these types of agreements and mail them via Form 3210, Document Transmittal, to the gaining site. Indicate on Form 3210, "Account Transferred" Re-input the IA at your site.

    Note:

    Once all employer information has been input to CC IAGRE and the paper files eliminated, this category will be removed from the IAAL.

5.19.10.10.10  (10-15-2012)
IAAL Lien Determination – CSCO Processing

  1. A lien determination is required to reinstate cases with a balance due above ≡ ≡ ≡ ≡ if the agreement does not meet streamlined criteria.

  2. See IRM 5.19.4.5.1(1), Before Filing Liens. If this information is present on the account being researched, follow procedures in (3) below in filing a lien. If no written warning of lien filing is present, do nothing on the account.

  3. If the ALN is "XX66" , (File Lien in Event of Default), prepare a lien request and submit to Centralized Lien Processing. The originator already determined a lien must be filed if the IA defaults and the taxpayer was informed of this action. See Lien Payoff/Release Contact Numbers on SERP Who/Where. Click on the link to the "ALS Lien Assistant" for instructions on submitting your request.

5.19.10.10.11  (04-28-2008)
IAAL DDIA in New Center

  1. The "DDIA IN NEWCTR" requires the DDIA be re-input at the new campus. Pull the DDIA file and forward to the new campus using Form 3210, Document Transmittal. Indicate on Form 3210, "Attn: DDIA Liaison" , and, "Account Transferred, DDIA needs to be re-input at your site" . For the mailing address of DDIA liaisons, see DDIA Liaisons (Campus) on SERP Who/Where.

5.19.10.10.12  (02-01-2014)
IAAL Categories: "ORIGINATION FEE TRACKING" , "REINSTATEMENT FEE TRACKING" , and "DISHONORED CHECKS" (formerly "USER FEE ERROR LISTING" )

  1. The User Fee is deducted from the payment in CP 521, Installment Agreement Reminder Notice, processing and applied to the User Fee module:

    • MFT 13: BMF

    • MFT 55: IMF

    Note:

    For definition, see IRM 5.19.1.5.4.6.1, User Fee Modules (MFT 13 and MFT 55).

  2. IDRS generates a listing on the IAAL under two categories for all payments, regardless of status, where there is:

    • No Agreement

    • User Fee Code inconsistent

    • Duplicate Original Fee

    • Duplicate Revision Fee

    • Dishonored Checks

  3. The "ORIGINATION FEE TRACKING" heading category includes only:

    • Origination paid discrepancies

    • Duplicate payment(s)

    • Dishonored checks

  4. When the billing record shows the origination fee was paid, and a TC 694/DPC 50 or 49 posts in the current cycle, the account is listed under the origination tracking category.

  5. The "REINSTATEMENT FEE TRACKING" heading category only includes:

    • Reinstatement paid discrepancies

    • Duplicate payment(s)

    • Dishonored checks

  6. When the billing record shows the reinstatement fee was paid and a TC 694/DPC 51 posts in the current cycle, the account is listed under the reinstatement tracking category.

  7. CSCO must determine what the billing record should reflect and if any other action is needed.

    Note:

    The billing record is defined as: IDRS — IADIS user fee codes 0 - 9.

  8. This listing generates due to the MFT 13/55 reflecting a duplicate or possible mismatch of the TC 694.

  9. Both origination and reinstatement fee tracking categories include dishonored checks. When a check is dishonored, identify the accounts by a reversed TC 694 with a TC 695 Doc Code 87. Accounting Operations also inputs TC 361. When these appear on the IAAL listing, the fee is set as "Not Paid" . CSCO must review and/or reverse the correct code.

  10. In both categories, including Dishonored Check information, research the account to determine if the user fee is a:

    • A true duplicate

    • Discrepancy, or

    • Dishonored check

  11. Based on this determination, take the appropriate action and update the fee

    Example:

    Transfer, abate, etc.

  12. In most instances, MFT 13/55 does not display on IDRS; research these accounts using CC CFOL.

    Caution:

    When researching the account, a duplicate fee paid may actually be due and collected because of the account leaving ST 6X and another IA or reinstatement was established or initiated, creating a new Original or Reinstatement fee billing. For true duplicate fees collected see paragraph (15) below.

    Example:

    The taxpayer initiated an agreement creating an original user fee due, paid the fee of $120.00, and later defaulted, subsequently initiating a new agreement fee. In this scenario, both fees are due, but may reflect on the listing as a duplicate fee because of the duplicate TC 694; this example requires no transfer/abatement of the fee.

  13. Discrepancies may result in the TC 694 with the incorrect DPC code of 49 - 51. The mismatches often occur because the IA was IAREV, or revised, in some way after the bill for the user fee went out and the time this fee payment comes in. Research IDRS or Master File to determine if the incorrect DPC code 49 - 51 should be revised on IDRS or the User Fee

    Example:

    A $120.00 origination fee was due; however, the incorrect DPC user fee reflects only a $50.00 fee collected; this example requires a correction of the additional $70.00 applied towards the user fee. Transfer, per paragraph (15) below.

    Example:

    The taxpayer only actually owes a reinstatement user fee of $50.00 and the incorrect fee of $120.00 was collected; therefore, creating a $70.00 overpayment. This example requires a correction of the overpaid portion of the fee, transfer per paragraph (17) below.

  14. To update the user fee:

    1. Initiate CC IAREV

    2. The CC IAGRE displays CC IAREV if there is an IA (ST 60)

    3. To update the screen, input "0" in the "Review Account" field

    4. Proceed to the "User Fee CD" field and update with the appropriate user fee code

    Reminder:

    Only update the user fee code on ST 60 accounts; for other status accounts, take no action on updating the user fee code. These accounts are updated if the agreement is re-input or reinstated with the appropriate user fee due.

  15. To transfer or abate a user fee payment: see IRM 5.19.1.5.4.6.3, User Fee Payment Transfer/User Fee Abatements.

    Reminder:

    When transferring or abating the fee, ensure to update the fee on ST 60 accounts per paragraphs (12) through (14) above.

  16. If more than one duplicate user fee is deducted, it may be an indicator the taxpayer is submitting a copy of the original CP 521, Installment Agreement Reminder Notice, with subsequent installment payments:

    1. Contact the taxpayer with instructions to avoid this condition occurring in the future.

    2. If unable to reach the taxpayer by phone, send Letter 3127C, Revision/Reinstatement to Installment Agreement, to explain the circumstances.

    3. Create a history item on ENMOD and add the reason the duplicate fee is appropriate to AMS.

      Example:

      "DUP-UF-LTR"

  17. For all other information regarding user fees, refer to the following IRM references for a complete overview, identification, establishment, module identification, and fee payment/abatement:

    • IRM 5.19.1.5.4.6, IA Payment Methods and User Fees (UF) Overview

    • IRM 5.19.1.5.4.6.1, User Fee Modules (MFT 13 and MFT 55)

    • IRM 5.19.1.5.4.6.2, Manual Establishment of a User Fee Module

    • IRM 5.19.1.5.4.6.3, User Fee Payment Transfer/User Fee Abatements

5.19.10.10.13  (02-01-2014)
MFT 31 Category on the IAAL

  1. Installment Agreements are not transferred to MFT 31 modules when accounts are mirrored. The TINs generate on the IAAL for necessary action.

  2. Four weeks after appearing on the IAAL, review the accounts and determine the status of the IA prior to the mirroring. If the account was mirrored due to Innocent Spouse activity, follow the chart below:

    If... Then...
    The IA on the joint account defaulted and CP 523, IMF Installment Agreement Default Notice, was issued Take no action.
    The IA on the joint account would default; however, the mirroring of the account prevented the default

    Example:


    MFT 30 200212, Balance: .00, Status 12
    MFT 30 200312, Balance: 2,000.00, Status 21
    The MFT 30 200212 module was mirrored (MFT 31), but a new liability posted (MFT 30 200312).

    Re-establish the IA on the joint account, the balance due modules should now be MFT 31, and immediately default the agreement. This causes the CP 523, IMF Installment Agreement Default Notice, to generate.

    Note:

    If the joint account has an L— freeze, send Form 4442, Inquiry Referral, to CCP and request they issue a default Letter 2975CNotice of Intent to Levy - Intent to Terminate Your Installment Agreement (Spouse) - Certified Mail, to the taxpayer.

    • The IA was only for modules now mirrored

    • There is a balance due, now on MFT 31

    • No activity occurred resulting in the IA defaulting

    Re-establish the IA on the account without an L− freeze (nonpetitioning spouse).
    The IA is still active (ST 61) on nonmirrored module(s) in the joint account only

    Example:


    MFT 30 200212, Balance: .00, Status 12
    MFT 30 200312, Balance: 2,000.00, Status 61
    MFT 31 200212, Balance: 1,200.00, Status 21

    1. Add the MFT 31 module to the existing IA.

    2. Suppress the restructuring user fee and allow the skip.

  3. In all cases where the IA is re-established, use the same terms present on the MFT 30 modules. Do not change the user fee code current on IAREV; if the current user fee code is:

    1. "0" , it should remain as "0"

    2. "5" , it should remain as "5"

  4. In this scenario, allow the skip.

5.19.10.10.14  (05-14-2008)
IAAL "Military Combat Zone" (CSCO Processing)

  1. All accounts that were in IA status prior to entering a CZ and have now exited the CZ will appear on the IAAL under this new category.

5.19.10.10.14.1  (02-01-2014)
IAAL Military Combat - Suspense Period

  1. All CZ participants (military and nonmilitary) are entitled to a suspense period of 180 days from the date of departure from the CZ in addition to the time they spent serving in the CZ.

  2. All collection action (e.g. notices, letters, telephone calls, liens, levies, installment agreements, etc.) will be stopped during this time period. In addition, all penalties and interest will be waived on any balance due accounts.

  3. The start date of the suspense period begins the day following the transaction date of the TC 500, Closing Code XX (exit date).

  4. The ending date of the suspense period is calculated from the transaction date of the TC 500 Closing Code XX (exit date) plus 180 days for Balance Due cases.

  5. On return delinquencies for 2001 and subsequent period, the taxpayer will be given 180 days plus 105 (106 leap year) if the taxpayer was in the CZ for the entire filing period from the transaction date of TC 500 closing code XX (exit date). The 105 (or 106) days only applies to the filing of a tax return and is not used to compute the new CSED. See IRM 5.19.10.6.4, Combat Zone Computation of Suspense Period.

5.19.10.10.14.2  (02-01-2014)
IAAL Military Combat - Accruals

  1. Assessment of penalties and interest will require manual computations of accruals.

  2. The CZ period must be computed before accruals can be calculated. Use the CZ entry date and exit date displayed on IMFOLE plus 180 days to compute the suspense period. The accrual of penalties and interest is suspended from the entry date to the exit date, plus 180 days.

    1. Compute penalties and interest from their transaction date to the date of the TC 500 cc 52, 54 or 56 (entry date). Then compute the penalties and interest from the TC 500 cc 53, 55 or 57 (exit date) plus 180 days.

    2. The account may require the addition of penalties erroneously abated by the computer. These accounts can be identified by the presence of a TC 277 and/or TC 167 in balance due modules assessed prior to entering the CZ. The taxpayer is still liable for these penalties. Compute these penalties from the return due date to the entry date into the CZ and update the account on IDRS using CC ADJ54.

5.19.10.10.14.3  (01-15-2013)
IAAL Military Combat - Reinstatement of Installment Agreements

  1. CZ accounts previously in ST 60 will be printed on the IAAL under the heading "Military Combat" . It is important that these accounts are worked within two cycles to prevent them from automatically updating to ST 20 and issuing the first balance due notice (CP 501, IMF 1st Notice - Balance Due). Use the following instructions for contacting the taxpayer regarding their prior agreement. For cases appearing on the IAAL under "Military Combat":

    1. Send Letter 2702C, Combat Zone, informing the taxpayer that the prior IA has been reinstated unless the taxpayer wishes to full pay the balance due or change the date of payment and/or the payment amounts. Letter 2702C, Combat Zone, must include the updated balance due amount and that full payment will be expected, if the terms of the agreement are not met. The updated balance due amount will require the manual computation of interest and penalties to allow for the suspended period.

    2. Input a STAUP 56 for XX cycles (determine # of cycles remaining in suspense). The account will immediately update to ST 48. Input the IA using CC IADIS. Ensure that the automatic skip indicator is set to allow the taxpayer to miss one payment before the account is defaulted for nonpayment.

      Note:

      No reinstatement user fee will be charged.

Exhibit 5.19.10-1 
Restrictive Conditions

IDRS balance due processing identifies certain restrictive conditions which prohibits issuance of balance due notice and TDA. The module will not update to the next status. It will be analyzed in the next processing cycle for issuance of the appropriate status. The following table lists restrictive conditions.

Restrictive Conditions
1 Module within six months of the latest CSED
2 Unreversed TC 470
3 Pending TC 470 (no cc, cc 94, or cc 98)
4 Unreversed TC 608 present
5 Left hand freeze O. Re-establishment of an account
6 Pending unpostable transaction code (UN or NU)
7 FTP penalty or interest accrual amount is negative
8 Current cycle is earlier than cycle of return due date
9 Right hand freeze A, J, V, or X
10 If next notice is 505 (TDA) and −G freeze present
11 PN TC 150–400, 411, 412, 488, 520 (except cc 71, 72, 75, or 84), 530, 534, 535, 611–692 (except TC 6x0), 701–772 (except TC 7x0), 792, 802, 806, 807, 820–843, 850, 890, 971, 976, 977
12 Master file balance due notice issued within the past 5 weeks
13 Unreversed TC 914, TC 916, TC 918 present
14 Pinex notice 569T or 569R issued within the past 5 weeks

Exhibit 5.19.10-2 
Reason Codes, TDA/TDI, Explanation

RCs are generated based on certain conditions on the Master File and IDRS. They are for informational purposes only. The following chart displays RCs, explanations, and states whether or not the RC is for TDA, TDI or both.

Reason Code Explanation TDA/TDI
33 Various freeze or hold conditions exist TDA or TDI
55 Balance due module, first balance due notice has been issued TDA
6I Master File (MF) Status is 60, SC Status is 12 TDA
6T SC Status is 26 MF Status is 22, 24, or 26 TDA
BU A transaction went unpostable TDA or TDI
EE TDI in progress TDI
FF ST 53 and another tax year is being extracted with a RC other than FF TDA
PA Module is in a balance due notice status. CSED is not expired. TDA
PB Module is in TDA status. CSED is not expired. TDA
PC Module is in IA status. CSED is not expired TDA
PD Module is in suspense or deferred action status. CSED is not expired TDA
QQ TDI notice status TDI
SS TDI processing suspended on this module TDI
T1 TDI closed by TC 594 or TC 599 TDI
T2 TDI closed by TC 593 TDI
T3 TDI closed. Transferred to another campus TDI
T4 Closed TDI tax module for any reason other than those pertaining to other RCs TDI
T5 TDI closed; NMF posting (TC 590) TDI
UA Open Control Base TDA or TDI
UB
UM
US

Exhibit 5.19.10-3 
EFT Prioritization List

The EFT (Electronic Funds Transfer) Listings are segmented into three tiers based on processing deadlines.

Tier 1 must be worked in 5 calendar days from received date.

  • EFT 12

  • EFT 16

  • EFT 1240

  • EFT 1825

Tier 2 must be worked in 10 calendar days from received date.

  • EFT 10

  • EFT 14

  • EFT 18

  • EFT 19

  • EFT 20

  • EFT 1823

Tier 3 must be worked in 30 calendar days from received date.

  • EFT 28

Exhibit 5.19.10-4 
IAAL Prioritization List

The IAAL is segmented into three Tiers based on processing deadlines:

  • Tier 1 must be completed within five (5) working days

  • Tier 2 must be completed within ten (10) working days

  • Tier 3 must be worked within 45 working days

Tier 1 (must be worked within 5 working days) includes the following categories:

  • Defaulted (ST 64)

  • Military Combat

  • Full Paid (restricted P&I Only)

  • Full Paid (Multiple Conditions)

  • Full Paid (All Others)

Tier 2 (must be worked within 10 working days) includes the following categories:

  • Originator Tracking Fee

  • Reinstatement Tracking Fee

  • Deferred Agreement Over One Year (ST 63)

  • Suspended (ST61), exception: June, July, December and January: 20 working days

    Exception:

    June, July, December and January: 50% in ten business days

Tier 3 (must be worked within 45 working days) includes the following categories:

  • MFT 31

  • Review Agreements

  • Lien Determination

  • Litigation Module

  • TC 914 on Agreement

  • Account Transferred

Exhibit 5.19.10-5 
CSED Computation Reference Table

Use the information in the "Suspension Time Frame" column to compute the CSED. See IRM 5.19.10.4.4.1, CSED Considerations and subsections for additional guidance.

Transaction Code Closing Code or Definer Code Description Suspension Time Frame IRM References
468/469 n/a Estate Tax Lien
  • Suspended from the TC 468 to the TC 469

  • IDRS does not update the CSED

  • IRM 5.1.19.3.12

  • IRM 5.5.5.2

488/489 n/a Estate Tax Lien
  • Suspended from the ST 14 date (TC 488) to the TC 489 date

  • IRM 5.1.19.3.12

  • IRM 5.5.7.9.1

480/481/482/ 780/550 definer 07 Offer In-Compromise
  • For specific guidance, follow, Exhibit 5.19.10-6 and
    Exhibit 5.19.10-7.

  • TC 481 (rejected OIC) dates include the 30 days and any appeal period or

  • If Offer is returned and TC 481 is input, the 30 days does NOT apply

  • IRM 5.1.19.3.4

  • IRM 5.8.10.7

  • IRM 5.19.7.3.7

  • IRM 8.21.5.4.3

500/550 cc 51 (cc 50 was used prior to 2004) and definer 06 Military Deferment
  • Suspended for the period of military service plus an additional 270 days

  • TC 500 definer code 06 will be entered with the correct CSED

  • IRM 5.1.19.3.9

  • IRM 5.4.12.2.3

500 cc 52,54, or 56 (enter) and 53, 55, or 57 (exit) Combat Zone
  • Use the TC 500 dates on CC IMFOLE to compute the CSED

  • Suspended from the date of entry to the date of exit plus 180 days

  • For multiple overlapping periods, 180 days is added to the last exit date

  • See IRM 5.19.10.4.4.1, CSED Considerations, for additional guidance when computing CSEDs with Combat Zone suspensions.

  • IRM 5.1.7.9.3

  • IRM 5.1.19.3.8

  • IRM 20.2.7.7.1

520/521 or 550 cc 60 - 67, 81, 83 and 85 - 89, definer 03 Bankruptcy
  • Suspended from the TC 520 to the TC 521 date plus six months

  • If a TC 520 date is within six months of a previously posted TC 521, compute the suspension from the first TC 520 to the last TC 521 and add six months to the end.

  • TC 520s dated after July 1986 and TC 521s dated after January 1987 are systemically computed in most cases.

  • A TC 521 with statistical indicator 999, will reverse all open TC 520s in the module for closing codes 81, 83, 85 through 89 and 60 through 67

  • cc 84 does not suspend the CSED

  • TC 522 is input to remove a TC 520 and does not affect the CSED

  • IRM 5.1.19.3.1.1

  • IRM 5.9.4.2

  • IRM 5.9.5.6

  • IRM 5.9.5.6.1

  • IRM 5.9.5.6.2

  • IRM 5.9.17.19

  • Document 6209 11.8.8

520/521 or 550 cc 76 or 77 and 70 (TC 520 only), definer 10 Collection Due Process
  • Suspended from the TC 520 to the TC 521 date

  • If the recalculated CSED is less than 90 days from the TC 521 date, then the CSED extends to 90 days from the TC 521 date

  • CSEDs are automatically calculated for TC 520/521s posted as of 01–01–2001, except when only one spouse requested the hearing

  • Prior to January 2000, TC 520 cc 70 was used for all hearing requests and reversed with TC 521 no closing code

  • Closing codes 70 through 75 do not suspend the CSED.

    Note:


    cc 73 suspends the CSED for MFT 55 and MFT 01. See below.

  • IRM 5.1.9.3.6

  • IRM 5.1.9.3.6.1

  • IRM 5.19.8.4.10

  • Document 6209, 11.8.8

520/521 cc 73 (MFT 55 and MFT 01 ONLY) Litigation
  • Period is from TC 520 date to TC 521 date.

  • CSED is suspended for TC 520/521 posted cycle 200002 or later for tax periods 199901 and subsequent

  • Prior to cycle 200002 cc 73 did not suspend the CSED.

 
520/521 or 520/550/521 cc 76 - 80, definer 04 District Court Litigation/Judgment
  • Suspended from the TC 520 to the TC 521 date unless a new TC 550 is posted with a later transaction date

  • If the tax liability is reduced to judgment, the CSED is extended indefinitely until satisfied (TC 550 definer code 04)

  • cc 84 does not suspend the CSED

  • IRM 5.1.19.3.2

  • IRM 5.1.19.3.2.1

  • IRM 5.5.1.9

  • IRM 5.9.6.7

  • IRM 25.3.5.6

  • Document 6209, 11.8.8

520/550/521 cc 80, definer 02 District Court Litigation - Assets in Control of the Court Suspended from the TC 520 to the TC 521 date plus six months
  • IRM 5.5.1.9

  • Document 6209, 11.8.8

520/521
470/472
cc 82 (TC 520) or
cc 95 (TC 470)
Civil Penalty with Appeal Rights
  • Suspended from the TC 520 to the TC 521 date

  • May be suspended with TC 470 cc 95. A new TC 550 should be input when the TC 470 is reversed. See IRM 5.19.10.4.4.1, CSED Considerations.

  • Document 6209, 11.8.8

  • IRM 5.19.14.1.5 Note, TFRP Statute of Limitations

520/521 varies Summons Enforcement Period is from the date the suit is filed until the proceeding is resolved
  • IRM 25.6.1.12.2.1

520/521 varies Third Party Summons Period is from six months after the service of the summons and ending on the date of the final resolution of the summoned party’s response
  • IRM 25.6.1.12.2.1

550 definer code 01 Installment Agreement with Form 900, Tax Collection Waiver
  • Accept the CSED date input with TC 550 definer code 01 as valid.

  • Refer to IRM 5.19.10.4.4.3, for additional guidance.

  • ONLY Field employees have the authorization to secure Form 900 Waivers

  • IRM 5.1.19.3.5

  • IRM 5.14.2.1.3

  • IRM 5.14.2.2.2

550 definer code 08 Wrongful Levy (Seizure) Suspended from the date property is wrongfully seized or received to the date it is returned or the date a wrongful levy judgment becomes final, plus 30 days
  • IRM 5.1.19.3.10

  • IRM 5.10.6.15

550 definer 08 Wrongful Lien Suspended from the date any person becomes entitled to a certificate of discharge of lien until 30 days after the earlier of the earliest date on which the Service no longer holds any of the amount as a deposit or bond or the date a judgment concerning the value of the Service’s interest in the property becomes final
  • IRM 5.1.19.3.11

550 definer 09 Taxpayer Living Outside of the US
  • Suspended while the taxpayer is outside the U.S. if absence is for a continuous period of at least six months

  • CSED does not expire until six months after the taxpayer's return to the country

  • IRM 5.1.19.3.7.1

550   Enforcement of the Two-Tier Tax Scheme (Exempt Organization Only) For specific guidance refer to the IRM references.
  • IRM 5.1.19.3.14

  • IRM 7.27.15.3.4

971/972 AC 043/063/163 Installment Agreement - Pending, Rejected or Appealed
  • Effective for transactions dated 3/9/2002 and after

  • From the TC 971 AC 043 to the TC 971 AC 063 dates for pending IAs

  • For 30 days following a rejected IA. TC 971 AC 043 to the TC 972 AC 043 dates. The transaction date of the TC 972 AC 043 includes the 30 days

  • For 30 days following termination. Master File adds 30 days to the TC 971 AC 163 date. except when TC 971 AC 163 is generated by ST 12

  • During the appeal of the terminated or rejected IA.

  • If the TC 971/972 AC 043 dates are the same, the CSED is not suspended

  • TC 972 AC 043 dates include the 30 days.

  • IRM 5.14.2.1

  • IRM 5.14.2.2

  • IRM 25.6.1.12.2.1

971/972 AC 065 Innocent Spouse
  • Suspended from the TC 971 AC 065 to the TC 972 AC 065 date

  • TC 971/972 AC 065 with the same dates does not suspend the CSED

  • IRM 25.15.1.8

  • IRM 25.15.2.4.2

971/550 AC 99/98 and definer code 05 Taxpayer Assistance Order
  • Suspended from the TC 971 AC 99 to the TC 971 AC 98 dates.

  • Until Information System computer program changes, the TC 971 AC 99 and 98 will not suspend the statute. Statute must be revised using TC 550 definer code 05.

  • IRM 13.1.14.3.1

  • IRM 13.1.14.4.2

  • IRM 13.1.14.4.2.2

Exhibit 5.19.10-6 
CSED Chart for OIC

Use the following tables to manually compute the CSED when OIC is present on the module.

If... And... CSED suspension is... In addition...
TC 480 date is 12/31/1999 and prior Any TC 550 or TC 290 with an amount is present prior to 01/01/2007 TC 480 to TC 481/482/781/788
  • Add 1 year

  • Exclude the days from 12/21/2000 through 03/08/2002

TC 780 date is 12/31/1999 and prior TC 480 to TC 781/788
  • Add 1 year

  • Exclude the days from 12/21/2000 through 03/08/2002

  • Stop at the later of the original CSED or 12/31/2002

TC 481/482 date is 12/31/1999 and prior TC 480 to TC 481/482
TC 480 date is 01/01/00 or later TC 481/482/780 is 01/01/00 or later TC 480 to TC 481/482/780 Exclude the days from 12/21/00 through 03/08/2002
TC 480 date is 03/09/2002 or later TC 481/482/780 is 03/09/2002 or later TC 480 to TC 481/482/780  
Be aware of the following:
  • TC 480/483 does not suspend the CSED.

  • Do not add any days to the TC 481 date. The 30 days and any appeal period is included in the TC 481 date.

  • If an Offer is rejected as unprocessable, the TC 481 date may be less than 30 days from the TC 480 date.

Exhibit 5.19.10-7 
CSED Chart for OIC (continued)

Use the following table to compute a CSED when an OIC is pending prior to 01/01/2000 but accepted, rejected or withdrawn 01/01/2000 or later.

If... And... CSED suspension is...
TC 480 date is 12/31/1999 and prior TC 481/482/780 is 01/01/2000 or later If the original CSED is later than 12/31/2002:
  1. Compute the number of days from 01/01/2000 to TC 481/482/780.

  2. Exclude any days from 12/21/2000 through 03/08/2002.

  3. Add to original CSED. This is the new CSED.

If the original CSED is earlier than 12/31/2002:
  1. Compute the number of days from TC 480 date to 12/31/1999, plus 1 year and add to the original CSED.

  2. Then, add the number of days from 01/01/2000 to TC 481/482/780 date.

  3. Exclude any days from 12/21/2000 through 03/08/2002. This is the new CSED.

Exhibit 5.19.10-8 
Manual Calculations of a CSED Using the Julian Date Calendar

Use when the transaction date does not extend past the calendar year:

STEP Action
1 Identify the assessment on the tax module. (TC 150, Return Posted, TC 290 or TC 300, additional assessments etc.)
2 Take the date of the assessment (TC 150, TC 290, TC 300) and add 10 years. This is the original CSED date of that assessment. For example: If a taxpayer’s return posted (TC 150) on 04-15-2005, the original CSED is 04-15-2015.
3 Take the original CSED and exchange the date of 04-15-2015 with the corresponding Julian Date using Document 5657 or the Julian Date Calendar. For example: 04-15-2015 Julian date is 105. (2015 is not a leap year).
4 Review the tax module to identify any transactions that suspend the CSED. (TC 480, TC 780, TC 520, TC 521 etc.) Take the date of the beginning TC such as TC 480 or TC 520, and exchange the date for the corresponding Julian date using Document 5657 or Julian Date Calendar. For example if TC 480 is on the account with a date of 05-01-2005, the Julian date is 121.
5 Take the closing transaction or the transaction that ends the CSED extension, such as TC 780 or TC 521, and exchange the date for the corresponding Julian date. If TC 780 is dated 06-30-2005 the Julian date is 181.
6 Then take the larger Julian date and subtract the smaller Julian Date. In the above example, 181-121=60, The CSED is extended 60 days.
7 Add the result in step 6 to the Julian date of the original CSED. (105 and add 60 days) 105+60=165. Find the date corresponding to Julian date (165). It is June 14.
  The new CSED for the module in this example is 06-14-2015.

Exhibit 5.19.10-9 
Manual Calculations of a CSED Using the Julian Date Calendar

Use when the transaction date extends past the calendar year:

STEP ACTION
1 Review the module and find the assessment (TC 150, TC 290 or TC 300).
2 Take the assessment date and add 10 years, this is the Original CSED date. Example 04-15-2005 + 10 years= 4-15-2015.
3 Exchange the original CSED date of 04-15-2015 with the corresponding Julian date of 04-15-2015 using Document 5657 or the Julian Date Calendar. The corresponding Julian date of 04-15-2015 is 105 (2015 is not a leap year).
4 Review the tax module to identify any transactions that suspend the CSED. (TC 480, TC 780, TC 520, TC 521 etc.) Take the date of the beginning TC, such as TC 480 or TC 520, and exchange the date for the corresponding Julian date of that day using Document 5657 or Julian Date Calendar. For example, if a TC 480 is on the account with a date of 11-01-2005, the Julian date is 305.
5 If the closing transaction date is in the following year, (Example: TC 780 is 02-01-2006), take the ending Julian date for year 2005 (2005 is not a leap year, so the Julian date would be 365) subtract the Julian date from the opening TC 480. (365-305=60). From 11-01-2005 to 12-31-2005 the CSED was extended 60 days. Then find the corresponding Julian date of the TC 780 in 2006 (not a leap year) and add to the 60 days. The Julian date of 02-01-2006 is 32; add 60+32=92. The CSED will be extended for a total of 92 days.
6 Take the Julian date of the Original CSED (105) and add the amount of CSED extension (92 days). 105+92=197.
7 Find the date corresponding to the Julian date (197). It is 07-16-2015.
  The CSED for the module in this example is 07-16-2015.

Exhibit 5.19.10-10 
CSED Calculator Worksheet

See IRM 5.19.10.4.2, Transaction Codes and Case Actions that Suspend or Extend the CSED for situations that extend the CSED.

CSED Calculator Worksheet
TIN   Tax Period  
  TC Transaction Date Julian
Assessment Date      
Original CSED Date    
CSED Extension TC Code & Start Date      
CSED Extension TC Code & Stop Date      
Additional Months/Days    
CSED Extension TC Code & Start Date      
CSED Extension TC Code & Stop Date      
Additional Months/Days    
CSED Extension TC Code & Start Date      
CSED Extension TC Code & Stop Date      
Additional Months/Days    
CSED Extension TC Code & Start Date      
CSED Extension TC Code & Start Date      
Additional Months/Days    
Extended CSED Date    

More Internal Revenue Manual