5.19.12  Centralized Lien Operation (Cont. 1)

5.19.12.4 
Returned Documents from Recording Offices

5.19.12.4.1 
Recorded Documents

5.19.12.4.1.1  (04-28-2015)
Court Recording Information

  1. The court recording data (CRD) on returned documents will vary in the data provided and the way it is provided. Most often the CRD is on the lien document, but some recording offices may list the CRD on the voucher or a separate spreadsheet. If the data returned is not understandable, use available research tools to resolve including, if needed, contacting the recording office.

  2. Some recording offices only use recording numbers, some use book and page numbers, some use serial or UCC numbers, and some use a combination of the above. The clock time when the document was filed is not used by ALS and does not need to be input.

  3. The COURT input data screen on ALS can be set to go directly to the fields that are required by the specific recording office. This is referred to as the "Court Recording Window Flow." See the ALS User Guide for the combinations available for set up.

    1. If a change to the required fields is identified, forward the information to the ALS Coordinator through your Manager or Lead. Provide the name of the recording office and what fields the recording office uses.

    2. If combinations not listed in the ALS User Guide are identified, explain this on the request to the ALS coordinator. The ALS coordinator may be able to arrange an additional combination with the ALS programming staff.

      Note:

      Prior to requesting an additional combination, be sure to verify the field is required information by the recording office.

  4. Input the CRD for each lien document. See the ALS User Guide for instruction. Verify the data is input to the correct SLID and is entered correctly.

    Note:

    Incorrect data can cause future documents, such as a release of lien, to be rejected by the recording office.

  5. If there is not sufficient space in ALS to enter the full recording number supplied by the recording office, drop the first two (2) digits of the year followed by the rest of the data (e.g. "2015098765" would be "15098765" ). If not previously done, also take the following actions.

    1. Contact the recording office to ensure this will not cause future, related documents to be rejected. If no resolution is met, refer to FORT.

    2. Put a history on MAINTXC of the agreement.

  6. When inputting recording information and it is discovered that the lien document already has recording information, verify the SLID and the recording office on the document are the same as on ALS. Conduct additional research as needed to determine if this is a duplicate filing. If it is found to be a duplicate, see IRM 5.19.12.2.4, Duplicate Filings of NFTL, for further guidance.

  7. Once all of the data is input to ALS, verify that all lien documents were recorded by reviewing the associated voucher on the ALS voucher program. Refer to the ALS User Guide for more information.

    1. If the documents were returned without a BSV attached, find the voucher number by researching one of the SLIDs in the batch on ALS COURT screen.

  8. Verify that all documents on the BSV have been recorded by checking the recorded document indicator on the first page of the voucher. If the voucher program does not show all lien documents as recorded, take the additional steps as needed.

    1. Check the voucher for the SLID that does not show up as recorded

    2. Verify the lien document was sent with the voucher

    3. Check if the document was an estate or MCAR NFTL, a non-attachment, or any other document that was added to the BSV without a SLID.

  9. When a discrepancy is discovered or not all lien documents were returned, contact the recording office to determine why the recording information was not returned. Input a history of your findings on the voucher program.

    Reminder:

    When inputting a history to the voucher program, identify the recording office impacted by the history. The voucher number is for all courts within the state.

  10. Recording information must be input to ALS within five (5) days after receipt of the document.

  11. Use OFP 790-69030 for time spent inputting recording information and OFP 790-69040 for sorting and reviewing incoming documents.

5.19.12.4.2  (04-28-2015)
Unrecorded Documents

  1. Recording offices might return (or reject) documents that are unrecorded for various reasons including, but not limited to:

    • Incorrect fees paid, e.g., a batch of lien documents is sent to a recording office with an amount that is not consistent with the fee schedule for the recording office;

    • Overpayment of fees, e.g., the recording office receives a payment larger than is needed;

    • Release or withdrawal documents filed with missing or incorrect recording information; or

    • Documents were sent to the wrong recording office.

  2. Lien documents might be rejected in whole batches or individually, based on the recording office and the reason for the rejection. The ALS voucher program will be used for tracking of rejected lien batches and individual documents that are rejected. Refer to the ALS User Guide for information on how to use this tool in the voucher program.

  3. When document(s) are returned as unrecorded, research the situation and take corrective action as needed. These actions may include, but are not limited to:

    • Correcting the fees and/or forwarding an updated schedule of fees to the ALS Coordinator;

    • Processing an overpayment following IRM 5.19.12.5.1, Refund Received from Recording Offices;

    • Researching and correcting CRD in ALS; or

    • Updating filing location information.

  4. Input a history on the voucher on ALS for the rejected documents. The history should include the court ID number, state the voucher was rejected, and specify the reason for the rejection. If specific documents from a batch were rejected, the history should also include the SLIDs.

  5. Return the corrected document(s) to the recording office. If rejected due to an IRS error, send apology letter with returned documents. See Exhibit 5.19.12-5, Sample Letter to Recording Office on Rejected Lien Documents.

  6. Whenever possible, use the same voucher to re-send the documents to the recording office. A written history must be placed on the file copy of the voucher. It must include name, actions taken, and date closed along with a new date stamp showing the date it was mailed. If using the same voucher is not possible, use a different voucher.

    1. If only specific documents were returned unrecorded, add the corrected documents to the next voucher that will be going to the recording office.

    2. If no voucher is going out on the next processing day, generate a new voucher for the documents to be sent.

  7. Rejected lien documents are to be tracked from the time of receipt until resolution is made. All actions taken should be notated on a reject log spreadsheet. The Manager or Lead should check and initial the spreadsheet, thus verifying all information is correct and all inclusive. If the reject cannot be resolved at team level, the case should be referred to FORT for resolution.

    Note:

    If the documents returned with the rejected voucher have been recorded, these documents are not rejected and should not be counted as such.

  8. Resolution should be completed within five (5) business days after receipt in CLO, this corresponds with the number of days to process lien document batches. See IRM 5.19.12.3, Document Printing.

  9. Copies of the rejected vouchers and supporting documentation are retained for periodic review and analysis.

  10. For time spent working unrecorded documents, use OFP 810-69150.

5.19.12.5  (04-28-2015)
Recording Fees

  1. Most recording offices charge a fee for recording documents. The amount charged varies by recording office. The amount also varies by the type of document being recorded.

  2. Periodically recording offices change their fee schedule. When notification is received from a recording office on fee changes, immediately forward the information to the Manager or Lead of the team responsible for filing with the recording office. If the notification is received through a phone call, complete a Team to Team referral and an ALS Coordinator form and forward to the appropriate team.

  3. Once the appropriate team receives the change information, the following actions should be taken.

    1. Verify the request is not a previous action.

    2. Inform the team of the fee changes immediately so any pending vouchers can be adjusted.

    3. Notify the ALS Coordinator to update the court fees on ALS.

5.19.12.5.1  (04-28-2015)
Refund Received from Recording Office

  1. It is important that fee schedules are kept up-to-date and that vouchers properly reflect the documents being filed so that the amount paid to the recording office in association with the filings is accurate. At times--normally because of rejected documents--the amount paid may exceed the amount due. Often this overpayment is resolved with adjustments in future vouchers, but occasionally a recording office will refund the overpaid amount to CLO.

  2. Generally a recording office refunds overpayment in the form of a check; however, it might return cash.

    1. If a recording office returns cash as a refund of fees paid to them and the cash is in excess of $1.00, obtain a money order made payable to "U. S. Treasury" . Use part of the cash returned for the money order fee.

    2. If a recording office returns cash as a refund of fees paid to them and the cash is $1.00 or less, no money order is needed.

  3. Complete a Form 3210 indicating the proper fiscal year commitment funding code and, if known, the BSV number associated with the overpayment. Include a copy of the money order receipt, if applicable.

  4. Mail the Form 3210 with the check, money order, or cash (if less than $1.00) to the Beckley Finance Center via the Receipt and Control Section.

  5. Notate the BSV, if known, that a check was returned and update the ALS voucher history. In the notation include:

    • your name,

    • the amount of the refund,

    • check number or type of refunds (e.g., cash, money order, etc.),

    • reason for the return, if one is given, and

    • the date.

5.19.12.6  (04-28-2015)
Collection Due Process

  1. IRC § 6320 requires the IRS to provide taxpayers with notification when a NFTL is filed. If it is the first time a NFTL has been filed for the tax period, the notice provides the taxpayer with information regarding their right to a hearing and the amount of the assessed balance. This notice is known as a Collection Due Process (CDP) notice. The CDP notice advises the taxpayer that they have 30 days to request a hearing on the filing of the NFTL. The notice also provides the taxpayer with information on how to obtain a certificate of release and contact information for questions. See IRM 5.12.6, Appeals Processes Involving Liens, for additional information on CDP notices for NFTLs.

  2. To comply with IRC § 6320, Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320, is provided to the taxpayer by certified mail, registered mail, or in person. The following documents are sent with the Letter 3172:

    • A copy of Form 668(Y)(c),Notice of Federal Tax Lien (If filing is done in an electronic court, a facsimile of the NFTL is sent).

    • Publication 594, The IRS Collection Process.

    • Publication 1450, Instructions on How to Request a Certificate of Release of Federal Tax Lien.

    • Publication 1660,Collection Appeal Rights.

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

  3. The process of generating CDP notices begins when the Billing Support Vouchers (BSV) are printed from ALS to transmit the NFTLs to the recording offices (or when NFTLs for electronic filing locations are approved). The day after the NFTLs are printed, the CDP notices are generated and forwarded to Correspondence Production Services (CPS), which prints and mails the notices in accordance with legal requirements.

  4. ALS calculates the taxpayer's 30-day response due date for the CDP notice.

    1. The L-3172 must be mailed within five (5) business days after the NFTL is filed. For purposes of this calculation, the NFTL is considered filed on the date it should be received by the recording office.

    2. The Service calculates an estimated filing date by adding three (3) business days to the NFTL mailing date.

    3. The taxpayer's response due date on the letter is determined by adding five (5) business days plus 30 calendar days to the estimated filing date.

      Example:

      A NFTL is mailed April 2, 2014. The CDP notice must be mailed by April 14, 2014 (i.e. April 2 plus three (3) business days plus five (5) business days). The taxpayer's response due date is May 14, 2014 (i.e. 30 days later).

  5. CPS receives a file from ALS each Wednesday and Friday night which contains data for CDP notices. These notices are printed and assembled with the appropriate publications and mailed by certified or registered mail to the taxpayers and co-obligors. The generation, printing, and mailing of the notices follows an established schedule to adhere to the five-day requirement for notification as stipulated in IRC § 6320. See IRM 5.12.6.3, Collection Due Process (CDP) and Collection Due Process (CDP) Notices, for further details.

5.19.12.6.1  (04-28-2015)
Certified and Registered U. S. Postal Listings

  1. Certified and registered mail listings are generated to show all the notices that were mailed on a specific date. The listings show a United States Postal Service (USPS) date stamp to indicate that CDP notices were mailed and provide documentation that the IRS complied with the notification requirements of IRC § 6320.

  2. CDP notices mailed to an address within the United States; U.S. territories of Guam, Puerto Rico, Virgin Islands, and Saipan; and APO/FPO addresses are mailed certified. ALS produces U. S. Postal Form 3877 along with the taxpayer notice in a file sent to the CPS. The Form 3877 lists the certified mail number and the name and address of the receiving taxpayer.

  3. CDP notices mailed to foreign country addresses are mailed registered. ALS produces a Registered Mail Listing along with the CDP Notice

  4. Once CPS prints and mails the taxpayer notices, the certified and registered mail listings are stamped by the USPS with the date of mailing and forwarded to CLO for record keeping.

  5. Copies of the weekly certified and monthly registered listings can be found on Control D. These copies are used to monitor for receipt of the USPS date-stamped listings. If the date-stamped listing is not received within 14 calendar days from the date of the listings, contact the print site to secure the date-stamped copy.

  6. When the date-stamped listing is received, verify that each page is date-stamped with a legible USPS date stamp and no pages are missing. Contact the print site to secure missing or illegible pages.

  7. After verification that all pages are received, scan the listings to appropriate storage media (e.g., DVD, CD). Use separate media for certified and registered listings.

  8. Review the media to ensure:

    • all pages have been scanned,

    • the USPS date stamp is legible, and

    • the media is searchable.

  9. Label the media by content (Registered or Certified Form 3877), month and year.

  10. If scanning is being completed by another area, in addition to the above, verify that all paper listings and media are returned to CLO and all pages have been scanned.

  11. Retain the media in date order for ten (10) years, then forward to the Federal Records Center.

  12. Retain scanned paper listings for three (3) years, then forward to the Federal Records Center.

  13. When a request for a Form 3877 is received, use ALS Display to research the certified mail number. Follow local procedures for pulling a copy of the Form 3877 and forwarding it to the requestor.

5.19.12.6.2  (04-28-2015)
Other Notices

  1. Under IRC § 6320, the IRS must notify taxpayers in writing of their right to a CDP hearing with the Office of Appeals the first time a tax period is included on a NFTL. If the same tax period appears on a subsequently filed NFTL, the IRS notifies the taxpayer of the filing, but the taxpayer is not entitled to CDP rights. Additionally, the IRS notifies a Power of Attorney (POA) when a NFTL is filed against their client and notifies a third party if they have been named on a special condition NFTL.

  2. The most common non-CDP notices are generated through ALS and printed and mailed by CPS. Some other notices require manual preparation and issuance by the requestor. The following chart describes the different notices and how they are generally issued.

    Notice Issued to... Issued by...
    Letter 3171,Notice of Federal Tax Lien Additional Filing Taxpayer when a NFTL is filed on a tax period included on a previous NFTL CPS
    Letter 3262, POA Notification of Notice of Federal Tax Lien Filing POA when a new NFTL is filed and the taxpayer (client) received Letter 3172 CPS
    Letter 3271, POA Notification of Additional Federal Tax Lien Filing POA when a NFTL is filed on a tax period included on a previous NFTL and the taxpayer (client) received Letter 3171 CPS
    Letter 3886, Notice to Taxpayer of Nominee/ Alter Ego Federal Tax Lien Filing Taxpayer when a special condition NFTL is filed against a third party holding title to taxpayer assets Requestor
    Letter 3177, Letter Notifying of Federal Tax Lien Filing - Nominee or Alter Ego Third party nominee/ alter ego/ transferee when a special condition NFTL is filed against a them for holding title to taxpayer assets Requestor
    Letter 3527, Notice of Federal Tax Lien Filing - Child Support Obligation Taxpayer when a NFTL is filed for outstanding child support payments Requestor
  3. The above non-CDP notices are sent by regular mail. Do not send these notices by certified mail.

5.19.12.7  (04-28-2015)
Customer Contacts

  1. CLO receives inquiries and requests from a variety of internal customers (e.g., Field employees, Taxpayer Assistance Centers (TAC)) and external customers (e.g., taxpayers, practitioners, third parties, recording offices). CLO must provide customers complete and accurate responses. It is important that all employees are familiar with the major duties and responsibilities in providing quality service to customers. See the following sections for general guidance on customer contacts:

    • IRM 21.1.3, Operational Guidelines Overview

    • IRM 21.1.1.7, Communication Skills

    • IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

5.19.12.7.1  (04-28-2015)
Internal Contacts

  1. IRS employees are considered internal contacts for CLO. Recording offices are also considered internal contacts for CLO relative to the methods of communication available to exchange information for the effective processing of lien documents. Specific taxpayer account information should not be disclosed to recording offices without proper authorization.

  2. Contacts can be made by mail or fax and, with an IRS employee, by secure email.

  3. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be followed when faxing confidential information.

    Caution:

    When emailing Personally Identifiable Information (PII) or Sensitive But Unclassified (SBU) information messages or attachments, always use IRS approved encryption technology. See IRM 1.10.3.2.1, Secure Messaging and Encryption.

5.19.12.7.1.1  (04-28-2015)
Request to Stop a Lien Document

  1. There will be times when an IRS employee will contact CLO to have a lien document stopped before filing.

    Example:

    The NFTL was requested and the taxpayer full paid the following day.

    Example:

    A release of lien is systemically generated, but the payment causing the release is reversed.

  2. The ability of CLO to stop a lien document before filing depends on whether the document has been printed and sent to the recording office.

  3. NFTLs can be removed (deleted) from ALS prior to printing of the NFTL. When a request to stop the NFTL has been made and the NFTL has not been printed, take the following actions.

    1. Do not print the NFTL.

    2. Research to see if a voucher has been built that includes the NFTL.

    3. Give all research and documentation for deletion of the NFTL immediately to the Team Manager for review and to delete the NFTL from ALS and, if built, the BSV.

    4. If the BSV has been built but the NFTL has not yet printed, ensure the employee processing the documents is aware of the request to remove the NFTL from the voucher.

  4. After printing the NFTL but before sending it to the recording office, the NFTL must be physically pulled from the batch prepared for mailing. Once successfully pulled, take the following actions.

    1. Give all information immediately to the Team Manager for review and to delete the NFTL from ALS and the BSV.

    2. Ensure the employee processing the documents is aware of the request to remove the NFTL from the voucher.

  5. After sending the NFTL to the recording office, advise the requestor the NFTL cannot be stopped by CLO.

  6. Depending on when the NFTL is stopped in the process, the CDP notice may still be generated. Advise the requestor of the possibility that the CDP notice may be issued even though the NFTL is not filed. Since no NFTL is filed, the CDP notice is not valid. It is the responsibility of the requestor to reverse the TC 971 AC 252 if the notice is inadvertently issued.

  7. In situations where a request is received to stop the filing of other lien documents, most commonly a release or withdrawal, similar processes as described above apply. Instead of deleting the lien document from ALS though, the action generating the lien document must be reversed. A user with the appropriate permissions, usually a Manager, can reverse a release or withdrawal on ALS. Refer to the ALS User Guide for direction.

  8. If the release, withdrawal, or other document has been sent to the recording office, CLO can attempt to contact the recording office to see if they could reject the document before recordation, but generally the document cannot be stopped.

5.19.12.7.2  (04-28-2015)
Taxpayer Assistance Center Requests

  1. To expedite securing a payoff letter or release of lien, taxpayers may go to a Taxpayer Assistance Center (TAC) to request assistance.

  2. If the TAC office receives a request for a payoff , the TAC office should do the computation unless the request is for a Restricted Interest (RI) or restricted penalty account. See IRM 21.3.4.12.5.3, Lien Payoff Requests.

  3. When there is restricted interest and/or penalties the field assistor should send a request through secure email and in the subject line state Lien Payoff Request-Restricted Interest/Penalty Account/Walk-in Taxpayer. The following information should be included in the email:

    • Taxpayer name and address and identifying number.

    • Taxpayer's telephone number and the best time to reach them, if additional information is needed.

    • Computation date for payoff.

    • Tax module(s) to be included in the payoff.

    • Requestor's name and post of duty.

    • Any conditions that may impact calculation, e.g., combat zone dates.

  4. All CLO Team email boxes must be monitored for TAC requests that need to be expedited. If the payoff request is sent to the Walk-in Mailbox in error, forward the email to the correct team with a copy to the requestor.

  5. The field assistor will advise the taxpayer the request has been submitted and when they can expect a response. The taxpayer will be supplied the toll-free number to CLO.

  6. Complete the computation using cc COMPA or COMPAF, as necessary. For cases requiring further computations, forward the request to the CCP Exam Unit for calculation. The CCP Exam Unit should provide the CLO with a time estimate for when they will provide a response to the payoff request.

  7. Reply to all persons on the requesting email when there are questions needing clarification or acknowledging receipt of the request. Also, reply to all with the estimated time-frame for the payoff to be sent to the taxpayer.

  8. Prepare a payoff letter using the ALS Payoff Utility after receiving the computations from the Exam Team. Mail the payoff letter to the taxpayer.

    Note:

    In the event the taxpayer has an urgent need, the TAC Manager should contact the CLO Manager to determine the time frame for completion of the request.

  9. A taxpayer visiting a TAC office might request an immediate lien release to hand carry to the recording office. In these situations, the TAC assistor will conduct initial research to determine the status of the taxpayer's account and will contact CLO, as needed.

  10. If the taxpayer is fully paying the liability by cash, certified funds, or other secured payment type described in IRM 5.12.3.3.1.1 , Liability Satisfied by Payment, the field assistor will send a request for lien release through secured email to CLO. The request will include:

    • The taxpayer's name and TIN

    • The tax periods being satisfied

    • How the periods are being satisfied (cash, certified funds, satisfied previously on IDRS), the amount of the payment, and a statement that the account is or will be in status 12

    • Date of the payment or when the modules were satisfied

    • The Field Assistor's name and post of duty

    • The name of an additional field assistor to cc on response

  11. As needed, ask for any additional information or clarifications by secure email. This should include any alerts to system down issues.

  12. It is the responsibility of TAC to ensure the accuracy of all requests for an immediate release of a lien. CLO does not verify the validity of the request for a lien release since TAC has the authority to release a lien under IRM 1.2.44.5, Delegation Order 5-4 (rev. 3). However, review the request to ensure that all the modules on the NFTL are addressed either by the payment received by TAC or by showing satisfied on ALS. If any module on the NFTL is not addressed, contact TAC for additional research or clarification.

  13. Verify the NFTL has court recording data on ALS. If there is no recording data, use available research methods to locate the recording information. Inform the TAC employee of the delay.

  14. Input the release on ALS following standard processing procedures, with the following exceptions:

    1. Use your TSIGN as the requesting employee.

    2. Indicate the release has already been recorded so the release does not go onto the voucher for the next printing cycle.

    3. Advise the Manager that immediate approval of the release is needed on ALS.

  15. If the lien has self-released, advise the TAC employee of the situation. If the taxpayer still wants a certificate of release, prepare one following the instructions in IRM 5.19.12.2.7.4, Self-Releasing Liens.

  16. Print the release, scan it, and send it to the requestor by secured email. For NFTLs filed in electronic courts, provide a facsimile of the NFTL showing the release status and advise the assistor of the ELF procedures.

  17. Update ALS with a history about the immediate release, specifying the requesting field assistor's name and post of duty.

  18. Notify the team responsible for processing lien documents where the release will be hand carried so the release can be removed from the voucher and print batch.

  19. The process from receipt of the TAC email to the return of the release should be completed within one (1) hour. If it will take longer than one hour, contact the TAC employee immediately.

  20. Upon receipt of the release, the TAC assistor will date stamp the certificate and provide it to the taxpayer. The taxpayer will be advised that when they hand carry the release to the recording office, they may be charged a fee to file the release.

  21. If the payment is made by personal check or non-certified funds, the field assistor will process the payment and update IDRS with the taxpayer's most recent address, if needed. TAC will inform the taxpayer that the lien will be released within 30 days and a copy of the certificate of release will be mailed to their address.

5.19.12.7.3  (04-28-2015)
Taxpayer Advocate Service (TAS)

  1. TAS referrals regarding NFTL actions are sent to the FORT via Form 3210. The FORT TAS Liaison will acknowledge receipt of the TAS referral by telephone or Email within:

    • one (1) business day of receipt of an expedited case (Case Criteria 1-4, Economic Hardship), and

    • three (3) business days of receipt of a non-expedited case (Case Criteria 5-8, Systemic Hardship).

  2. The FORT forwards the TAS referral to the applicable lien team. Upon receipt, the Team Manager takes the following actions.

    1. Assigns the case to a tax examiner.

    2. Monitors the case assignment log to ensure timely case completion.

  3. The tax examiner must complete the requested action:

    • within three (3) business days of receipt of expedited cases or

    • by the Requested Completion Date shown in Item 3 of the Form 12412, Operations Assistance Request (OAR), for non-expedited cases.

  4. The tax examiner works with the TAS Liaison in the FORT to resolve any issues that prevent case resolution.

  5. If the tax examiner working the OAR determines additional research or documentation is required on an OAR, the tax examiner contacts the assigned TAS employee within one (1) workday of the determination, or within one (1) business day of the receipt of the OAR on expedited cases.

    1. If the assigned TAS employee cannot provide the additional information within three (3) business days of the request, the tax examiner may return the OAR to TAS and the case will be closed out of inventory.

  6. If the case cannot be completed by the requested completion date, the tax examiner must contact the TAS Liaison to renegotiate a completion date. If resolution of the case cannot be completed by the negotiated completion date or there is disagreement about the negotiated completion date, the tax examiner should elevate the disagreement to the Team Manager.

  7. After taking the necessary actions to resolve the issues of the case, complete Form 12412, Section VI, 1a & 1b and return the completed case to the Team Manager or Lead for review. If requested case actions cannot be completed, return the case to the TAS Liaison with an explanation of why case cannot be resolved.

  8. The Manager takes the following actions.

    1. Reviews completed cases to ensure correct actions were taken.

    2. Completes Section VI of Form 12412.

    3. Sends the case back to the FORT TAS Liaison and the TAS Case Advocate.

5.19.12.7.4  (04-28-2015)
Recording Offices

  1. CLO might be contacted by recording offices via the internal toll-free line or other means regarding payment or recording issues. As much as possible, the assigned state team should attempt to provide "one-stop service" to facilitate the filing process.

  2. When a call is received on the toll-free line from a recording office, identify the recording office’s information and determine the problem.

    1. If the problem can be resolved independently, take the appropriate actions. Such issues may include, but are not limited to, verification of a walk-in release, fee adjustment, and missing or incorrect recording data.

    2. If you cannot resolve the problem, place the caller on hold and contact the Manager or Lead of the team assigned the recording office's state. If contact is made, transfer the call to the Manager/Lead’s Aspect telephone line. Otherwise, document information about the call and hand carry to the appropriate Manager/Lead.

    3. If the problem cannot be resolved while the recorder is on the line and the situation is such that a document cannot be recorded and/or the entire BSV may be rejected, promise a call back within the hour and take appropriate action to resolve the problem.

  3. When notified of a recording issue by means other than by telephone, attempt to resolve the issue by conducting research and, if necessary, contacting the recording office.

  4. In situations where the recording office raises a question about a payment, explain the payment process, including TOP offset. As needed, provide one of the following resources as a contact point for further information:

    • Internet Payment Platform (IPP) at (866) 973-3131 or Email: ippgroup@bos.frb.org;

    • Beckley Finance Center Lien Technician at (304) 254-3300; or

    • Treasury Offset Program at (800) 304-3107.

  5. If there is a payment issue that cannot be resolved through IPP or TOP offset, elevate the issue to Beckley Finance Center. They will research the issue and contact the recording office, if necessary.

    • If Beckley is able to resolve, they will notify the CLO team.

    • If Beckley is unable to resolve, refer to the FORT for resolution.

  6. For all other communications from the recording offices, determine the appropriate action to take. As needed, consult the Team Manager, Lead, or FORT.

  7. Document the ALS voucher program with the steps taken to resolve an issue.

  8. For a recording issue that cannot be resolved, elevate the issue to the FORT.

5.19.12.7.4.1  (04-28-2015)
Treasury Offset Program (TOP)

  1. The Treasury Offset Program (TOP) is a federal, centralized offset program administered by Financial Management Services (FMS) to collect delinquent debts. Before a vendor (i.e., recording office) is issued a federal payment (including payment of filing fees), FMS searches its database to determine whether the jurisdiction as a whole owes a federal debt.

  2. A TOP offset occurs when another department within the same government jurisdiction as the recording office owes a federal debt. The payment designated for the lien document fees is offset to apply toward the debt of the other department.

  3. The TOP offset is usually discovered by the recording office when they receive a diminished amount for the recording of the lien documents. The reduced amount may be as low as one dollar ($1.00), but will not be less than that amount.

  4. TOP offsets continue until the debt of the other department is fully paid.

  5. When a call from a recording office about a TOP offset is received, attempt to resolve the issue by explaining the offset program. Information in Pub 1468, Guidelines for Processing Notices of Federal Tax Lien Documents, may be helpful. If unable to resolve the issue, immediately refer the matter to the FORT.

  6. If the FORT is unable to resolve the issue by providing additional information to the recording office, research is conducted for the specific state law that covers the filing responsibility of the particular recording office.

  7. The FORT prepares a letter to address the situation and demand that the lien documents be filed. As needed, Counsel may be consulted to assist with the research and the wording of the letter. See Exhibit 5.19.12-4 for a sample format of a letter developed with Counsel.

  8. The letter is signed by the CLO Operations Manager and mailed to the recording office. If the BSV and documents were rejected by the recording office, return them with the letter serving as a transmittal.

  9. If the recording office refuses to file the lien documents after receiving the letter from the Operations Manager, refer the issue back to the FORT. The FORT will prepare a formal referral to Counsel for legal intervention.

5.19.12.7.5  (04-28-2015)
External Contacts

  1. CLO is regularly contacted by taxpayers, taxpayer representatives, and other third parties including banks, title companies, and prospective purchasers. These are considered external contacts. These contacts can be by mail, fax, or on the Aspect toll free line.

  2. Disclosure rules must be followed on each and every contact. The following are only some of the disclosure rules.

    1. Before disclosing any tax information, verify that you are speaking to the taxpayer or their authorized representative. See guidelines in IRM 21.1.3, Operational Guidelines Overview.

    2. Exercise caution when leaving information on answering machines or voice mail. See IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail.

    3. Observe requirements before faxing confidential information to taxpayers. See IRM 11.3.1.11, Facsimile Transmission of Tax Information .

    4. Do not send email with taxpayer information outside the IRS, even if authorized by the taxpayer. See IRM 11.3.1.14.2, Electronic Mail and Secure Messaging .

  3. Any correspondence being faxed or mailed to the taxpayer must have the SSN redacted to the last four digits in the SSN.

  4. When speaking to the taxpayer, verify the taxpayer's address. If the current address differs from IDRS, update the IDRS address using an appropriate command code (e.g., ENREQ). Be sure to enter your name, title, and phone number in the REMARKS field. See IRM 21.1.3.20 Oral Statement Authority, for guidelines on updating the taxpayer's address.

  5. Any correspondence returned to CLO as undeliverable should be destroyed in accordance with locally prescribed guidelines. Correspondence not requiring a follow-up action by the addressee should not need additional research.

5.19.12.7.5.1  (04-28-2015)
Third Parties

  1. Disclosure of information on a request from third parties requires one of the following:

    • Valid Form 2848, Power of Attorney and Declaration of Representative;

    • Valid Form 8821, Tax Information Authorization;

    • Telephonic authorization from the taxpayer in accordance with IRM 11.3.3.2.1, Requirements for Oral Authorization; or

    • A written request from a person who demonstrates that they possess, or intend to obtain, a right in the property attached by the lien. The written request should include the reasons the information is desired and properly identify the NFTL in question. A prospective purchaser should attach a copy of the sales contract or a lender loan application. See IRM 11.3.11.10, Disclosure of Amount of Outstanding Lien.

      Note:

      See IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication. for more information.

  2. If taxpayers wish to authorize a person to act on their behalf to resolve tax matters, they must complete Form 2848. When taxpayers wish to authorize a third party to inspect or receive confidential information they can submit a Form 8821 to make this designation.

  3. Verify on IDRS Centralized Authorization File (CAF) if authorization has been received and established for the taxpayer. If not, the taxpayer or Power of Attorney (POA) needs to submit the appropriate form to receive information on the taxpayer's account.

  4. When the authorization form is received, review the document to ensure it is valid. Review the instructions for the Form 2848. See IRM 21.3.7.5.1 , Essential Elements for Form 2848 and Form 8821.

  5. Upon receipt of an inquiry from an authorized third party, research ALS to verify that a NFTL exists. If a NFTL is not found on ALS ask for additional information to identify why they believe there is a NFTL. Some possibilities and actions to take are in the chart below:

    If the inquiry pertains to a(n).. Then..
    Estate tax lien Provide contact information for the Advisory Estate Tax Group
    MCAR notice of lien Provide contact information for International
    State lien Advise the requestor to call the State that issued the lien
    Levy Provide the contact information for the employee or function assigned the case.
  6. Review the authorization to ensure the tax modules that are listed match the modules on the NFTL(s) in question.

    1. If the authorization does not cover the tax periods on the NFTL, send the response directly to the taxpayer.

    2. If the authorization covers some, but not all the tax periods on the NFTL, the tax information shown on the NFTL (or Collection due process notice) can be given to the representative. If the representative wishes to further discuss the non-covered periods, a revised/new authorization form must be filed.

  7. The checking of box 4, 5 or 6 on Form 8821 does not relate to the validity of the form. If box 4 is not checked on the Form 8821, forward the Form 8821 to the CAF unit. If box 4 on Form 8821 is checked, do not send the Form 8821 to the CAF. The CAF unit addresses box 5 and/or 6 on Form(s) 8821 they receive.

  8. When a Form 8821 or 2848 is received and is not on IDRS CFINK, input an ALS history with the contact information and years applicable. This can be used for further follow up contacts and letter issuance, and no re-submission of the Form 2848 or Form 8821 will be necessary. Forward the forms to the CAF area when appropriate.

    Note:

    Generally, third party requests related to Form 8821 must be made within 60 days of the authorization. However, when Form 8821 is submitted by a mortgage, title, or escrow company in connection with a lien payoff, the form is exempt from the 60-day rule for signature as the request is considered "resolving an issue related to a Federal tax matter." See IRM 11.3.3.1.1, General Requirements for Disclosure to Designee.

  9. When the taxpayer verbally authorizes information to be given to a third party, document the ALS history that verbal authorization was given, who was authorized, the contact information of the third party, and for what tax modules the authorization was given.

    Note:

    Once documented, the verbal authorization remains valid until such time as the financial transaction is completed or the authorization is revoked, thereby eliminating the need for a second consent or Form 8821.

5.19.12.7.5.2  (04-28-2015)
Request for Payoff

  1. Requests for lien payoffs can be received in a variety of ways (e.g., mail, fax, Aspect toll-free line) from a variety of customers (e.g., taxpayers, POAs, authorized third parties). Payoff computations are completed using the ALS Payoff Utility, which generates Letter 3640, Taxpayer Lien Payoff , or Letter 3641, Third Party Lien Payoff.

    Reminder:

    Disclosure guidelines must be followed when addressing requests. See IRM 21.1.3.2, General Disclosure Guidelines.

  2. When a payoff request is received, research ALS and IDRS to determine the status of the NFTL and the tax periods.

  3. Research ALS to verify that a NFTL exists and whether the NFTL is still in effect.

    1. If a NFTL is not found on ALS ask the requestor to provide information to identify why they believe there is a NFTL. Some possibilities and actions to take are shown in the chart below:

    If the request pertains to a(n).. Then..
    Estate tax lien Refer the request to Advisory Estate Tax Group
    MCAR notice of lien Refer the request to International
    State lien Advise the requestor to call the State that issued the lien
    Levy Refer the request to the employee or function assigned the case.
  4. Determine whether the request should be referred to another office based on the status of the tax module(s) on IDRS.

    If status is.. And.. And if the inquiry is...
    by phone, then.. in writing, then..
    26 The account is assigned to a revenue officer (RO) or RO Group
    i) Provide the requestor the RO/Group contact information.
    ii) Advise the requestor to contact the RO/Group to secure a payoff and/or discuss their account.

    i) Fax the request to the attention of the assigned RO/Group. Include Form 8821 if applicable.
    ii) Email the RO/Group advising of the referral. Include the received date of the request, requestor information, if Form 8821 was sent with the fax, and the fax number used.
    71 The TC 780 is posted on IDRS. Advise the requestor to contact MOIC and provide the hot line number as listed on SERP. Refer the request to the MOIC function as shown on SERP.
    71 The TC 780 is not posted on IDRS Complete the request. Complete the request.
    72 The TC 520 closing code is 60-67, 81, or 83-89 Advise the requestor to contact the Centralized Insolvency Operation (CIO) and provide the toll free number listed on SERP (800-973-0424). Fax the request to CIO using the fax number listed on SERP (855-235-6787).
    72 The TC 520 closing code is 70-75 or 80 Advise the requestor the case is an Advisory issue and provide the phone number of the assigned Advisory Office. (See Pub 4235) Fax the request to the assigned Advisory Office. (See Pub 4235)
    72 The TC 520 closing code is none of the above Complete the request. Complete the request.
    Any not listed Any condition not listed Complete the request. Complete the request.
  5. Refer the payoff request to the assigned function for completion of the request if any of the modules are in the described status as shown in the chart. Whenever referring a written payoff request to another function, take the following actions.

    1. Send the requestor Correspondex Letter 3645CS to advise of the referral.

    2. Input an ALS history of the request and to which office it was referred.

  6. For requests not in status 26, 71, or 72, or not in a condition relative to those statuses (as shown in the chart above), complete the payoff request. See the ALS User Guide for instructions on using the Payoff utility.

  7. Using caution, determine the tax modules to include in the payoff amount.

    1. Do not include modules that have the status "self released" on ALS.

    2. If IDRS shows a balance due on the self-released module(s), complete the payoff without the self-released modules and determine the IDRS Status. If the account is in IDRS Status 26, 71, 72 a determination to revoke the self-release and file a new NFTL on the self-released modules is needed by the assigned function.

  8. ALS Payoff Utility will compute the payoff amount for modules on TXMOD.

    1. If a module is not on the Taxpayer Information File (TIF), use IDRS command MFREQ/RECON to retrieve the tax module and its related entity data from Master File (MF).

    2. During dead cycles, MFREQ/RECON are not available so if all NFTL modules are not on TXMOD, prepare a manual computation and letter.

  9. Compute the payoff to the:

    • date given by the requester or

    • 30 days from the request date if no date is given

  10. Computation of payoff amount is systemic unless there is a computation hold on penalty/interest requiring a manual computation. If manual computations are needed, complete the computation and update the ALS Payoff Utility letter.

    1. If interest is manually computed, send a copy of the interest computation report to the taxpayer with the payoff letter.

      Reminder:

      Pursuant to IRC 6651(d)(2), add 10 days to the L-1058 or Status 58 date when calculating interest using COMPA.

  11. If an "I" freeze is present, it could mean there is additional interest due on the account and the module is not truly satisfied. Follow procedures for Restricted Interest and send these to the FORT for review and to Exam for calculation.

  12. If there is a COMP Hold on an account due to a pending adjustment (i.e., TC 29X/30X), an accurate payoff cannot be computed until those transactions have posted. Explain to the taxpayer there is a pending adjustment on the account, a payoff cannot be completed until that adjustment posts, and the requested payoff letter may take longer than the normal processing time. Look at the cycle date next to the pending transaction and complete the payoff at that time

  13. ALS Payoff Utility requires identification of who has requested the payoff. Use:

    • "T" if the request is from the taxpayer,

    • "P" if the request is from a valid Form 2848 or the POA is on the CAF, or

    • "O" if the request is from a valid Form 8821 or person showing a material interest.

    Reminder:

    Do not disclose information if the request is not from the person owing the debt or an authorized third party.

  14. Before generating any letter, review for accuracy of the:

    • Entity

    • Taxpayer current mailing address, as verified through request received

    • Tax periods

    • Manual computation of Penalty/Interest

  15. Print and mail the letter to the taxpayer and/or the authorized third party as soon as the letter becomes available. For expedited requests fax the request when a fax number has been supplied.

    1. If the request is input to ALS by 1:00 P.M. EST, the letter will be available to print and send at 11:00 A.M. EST the next business day.

    2. When the payoff request is received by phone, input the letter request to ALS while the requestor is on the line.

  16. Managers should review the print queue to ensure all payoff letters are printed and mailed timely.

  17. For payoff requests received by phone, take action according to the table below. Advise the requestor of current processing time frames and, if applicable and appropriate, any reasons the payoff may be delayed (e.g., restricted interest, pending adjustment).

    If the caller... Then...
    Indicates an immediate need for a payoff amount Compute the amount due using INTST, AMS/DI, or other available program and provide a verbal payoff amount.
    Requests written confirmation of the payoff Request the payoff letter through ALS while the customer is on the line and mail the Letter 3640/3641 as soon as it is available.
    Expresses a need for an immediate payoff letter due to a hardship (e.g. imminent closing, insists they will incur financial harm, previous request input to ALS did not print and no time to re-request) Compute the amount due using INTST, AMS/DI, or other available program and, with Manager/Lead concurrence, manually prepare a payoff letter to send to the caller.
    Requests a faxed copy of the payoff letter Fax the payoff letter as soon as it is available.

    Note:

    AMS/DI will provide payoffs for all of the modules on the TIF that the taxpayer owes. For modules not on the TIF, MFREQC must be used to include them.

  18. Maintain any manual payoff letters in the team until the letter expires.

  19. Input an ALS history once the payoff letter is provided verbally, faxed, or mailed. Notate any special circumstances such as manual processing or need for immediate payoff.

  20. When a request for an updated payoff is received from a third party:

    • Check the history on ALS to verify that a payoff has been previously input.

    • Verify the name and address of the third party requestor by viewing the payoff letter. If the same third party has previously received a payoff letter no new Form 8821 is needed.

  21. Payoff requests must be completed and mailed within 14 calendar days from receipt in CLO. If the request is taken by phone the request must be input directly into ALS while the caller is on hold.

    Exception:

    For payoff request being held for pending adjustments (TC 29X/30X), the 14 -day time frame is not applicable. The payoff request should be completed as soon as possible after the adjustment has posted.

  22. Time spent preparing payoffs should be reported as follows:

    • If the request is received by phone, use OFP 700 69000 and do not take a closure count. This includes faxes received in conjunction with the call.

    • If a written request is received, use OFP 810 69070 and report a closure count.

5.19.12.7.5.3  (04-28-2015)
Lien Payment Processing

  1. Payments received as a result of a request for a lien payoff are processed by CIRSC Submission Processing.

  2. Lien payments should be sent to one of the following addresses based on the mailing type used.

    Regular Mail Overnight Mail
    Internal Revenue Service
    P.O. Box 145595 Stop 8420-G
    Cincinnati, Ohio 45250-5595
    Internal Revenue Service
    201 W Rivercenter Blvd, Stop 8420-G
    Covington, KY 41011
  3. If a copy of Letter 3640 or 3641 is received with the payment, Submission Processing will apply the funds to the open modules as shown on the letter.

  4. If the Letter 3640 or 3641 is received with certified funds, Submission Processing will process the funds as described above and notify CLO that the payment was made by certified funds. After reviewing the case to ensure all the tax periods on the NFTL will be fully satisfied after the certified funds are applied, input a release of the lien on ALS. The release must be input within five (5) business days after notification.

  5. Occasionally, a payment may be discovered in the course of sorting CLO receipts. If this occurs, research ALS to determine where the payment should be posted and complete a Form 3244, Payment Posting Voucher, indicating the:

    • Tax module for the payment to post,

    • Date payment received,

    • Amount of payment, and

    • TC 670 with a designation payment code (DPC) of 007.

      Note:

      A separate Form 3244 must be prepared for each tax module on which money is being applied.

  6. In addition to the Form 3244, complete a Form 4287, Record of Discovered Remittances. See IRM 3.8.46, Discovered Remittance, for additional information.

  7. Forward the completed Forms 3244 and 4287 to Submission Processing, Receipt & Control for payment processing.

  8. Payments must be processed within one (1) business day of receipt.

5.19.12.7.5.4  (04-28-2015)
Request for Release of Lien

  1. An external request for a lien release can come to CLO via the Aspect Toll Free system, mail, or fax. Generally the requests are from the taxpayer or their representative, but occasionally a request is received from a third party.

    Reminder:

    Follow disclosure guidelines prior to giving any information. See IRM 21.1.3.2, General Disclosure Guidelines.

  2. Upon receipt of a release request, research ALS to determine if the lien has been released.

    1. If the lien has been released, advise the requestor of the status.

    2. If the lien has not been released, research IDRS.

  3. Determine the status of the account on IDRS.

    1. For accounts in status 26, 71, or 72, follow referral instructions in IRM 5.19.12.7.5.2, Request for Payoff.

    2. Refer accounts with a "Z" freeze to Criminal Investigations (CI). Do not tell the taxpayer you are referring the case to CI.

    3. For accounts not meeting referral criteria, work the release request.

  4. Review IDRS to determine if the NFTL modules are satisfied.

    1. Check status 12 modules for an "I" freeze, which could mean there is additional interest due and the module is not truly satisfied.

    2. Be alert for partial release situations.

    3. Be alert for assessments split to different MFTs or modules moved to NMF.

  5. Based on the information available, take action according to the table below.

    If... Then...
    The NFTL modules are satisfied and the lien release has already been issued Advise the taxpayer of the release and that a copy would have been sent to the last known address at the time of release.
    If more than 30 days have passed since the release date:
    a) Verify the address for the taxpayer
    b) As necessary, follow procedures for updating the address in IDRS (see IRM 21.1.3.20 Oral Statement Authority).
    c) Provide the taxpayer with a copy of the release or, in the case of ELF filings, send a facsimile.
    The NFTL modules are satisfied, but the lien release has not been issued a) Ensure that the recording information for the NFTL is in ALS. If the recording information is missing, use the best research method available to locate the recording data.
    b) Review ALS and IDRS to determine any other reason the lien release may not have been issued (e.g., reversed payment, freeze code).
    c) Verify the taxpayer’s address and update IDRS if necessary.
    d) Input the lien release on ALS and explain to the taxpayer that a copy of the release will be mailed.
    The NFTL modules are not satisfied and there are credit balances on IDRS that will satisfy the NFTL modules a) Complete Form 2424 to transfer the credit to the appropriate module. See IRM 21.5.8, Credit Transfers.
    b) Input the lien release on ALS and explain to the taxpayer that a copy of the release will be mailed.
    The NFTL modules are not satisfied, and there are no credit balances on IDRS Advise the taxpayer and proceed to the Payoff Letter Process. See IRM 5.19.12.7.5.2, Request for Payoff.
    IDRS shows the assessments for the NFTL modules were abated but an unpaid NFTL filing fee remains Advise the taxpayer of the outstanding balance to pay and the option to submit an abatement request to the Advisory Office where they reside.
    If the lien has self-released Follow the procedures in IRM 5.19.12.2.7.4, Self-Releasing Liens.
  6. The lien release process is described in IRM 5.19.12.2.7, Lien Release.

  7. Releases of satisfied liens must be input to ALS within five (5) business days after receipt of the request.

  8. Time spent releasing liens should be charged as follows:

    • If the request is received by phone, use OFP 700 69000 and do not take a closure count.

    • If a written request is received, use OFP 810 69080 and report a closure count.

5.19.12.7.5.5  (04-28-2015)
Other Types of Requests

  1. CLO responds to requests for lien payoffs, releases of lien, and NFTL withdrawals after the lien has been released. CLO also handles all general lien-related inquiries before referring the more technical/legal questions to the FORT, Advisory, or other appropriate office.

  2. Inquiries can include, but are not limited to, the following:

    • Certificate of Discharge - Among other provisions, a lien must be satisfied (e.g., paid in full) in order to be "released." A discharge allows the taxpayer to sell a specific piece of property free from the effects of the lien without satisfying the lien. This piece of property is specifically "discharged" from the lien when the IRS receives what Advisory determines to be the value of the Government’s interest in the property. See IRM 5.12.10.3 , Discharge of Property, for more details.

    • Certificate of Nonattachment - A NFTL identifies the taxpayer by name, address and redacted TIN. However, at times the lien may mistakenly be associated with a third party or a third party's property. Most often this occurs when the taxpayer and third party have a similar name. The IRS may, upon receipt of documented evidence, issue a certificate that the third party may use as proof that they are not the person, and theirs is not the property, that is subject to the lien. See IRM 5.12.10.13, Certificate of Nonattachment, for more details.

    • Certificate of Subordination - The filing of the NFTL establishes the priority of the lien against certain creditors. Subordination allows another creditor to move ahead of the IRS lien in priority in order to benefit the Government. Most often this is requested when a taxpayer is getting a second mortgage or is refinancing an existing loan. The IRS can consider subordinating its lien to the new financing if the Government receives the value of its interest or the financing will ultimately increase the collection of the tax debt. See IRM 5.12.10.6, Subordination of Lien, for more details.

    • Withdrawal of NFTL - A lien cannot be released until the tax debt is satisfied or the CSED passes. A withdrawal removes the NFTL that was filed but the tax debt is still owed and the taxpayer is still liable for it. A NFTL may be withdrawn when certain conditions are met, including the NFTL was filed improperly or the withdrawal will facilitate collection. See IRM 5.12.9.3, Conditions for NFTL Withdrawal, for more details. A NFTL may also be withdrawn after the lien has been released. See IRM 5.19.12.2.8, NFTL Withdrawal.

  3. When handling inquiries for lien-related certificates, ensure the taxpayer understands that the submission of a request does not reflect approval of their request. The determinations for discharge, subordination, non-attachments, and withdrawals before lien release are generally made by Advisory. CLO has no impact on those determinations.

  4. In the table below are common inquiries involving liens that may be received and the action to be taken.

    Inquiry Response
    Taxpayer wants to SELL or transfer ownership of his property; however, the proceeds from the sale will not satisfy the lien. a) Tell the taxpayer to contact the Advisory Office where the property is located to apply for a Certificate of Discharge of Property from a Federal Tax Lien.
    b) Refer the taxpayer to Publication 783, Instructions on how to apply for a Certificate of Discharge of Property From Federal Tax Lien.
    c) Advise the taxpayer to read this publication BEFORE contacting Advisory.
    Taxpayer wants to REFINANCE her mortgage to lower the interest rate; however she cannot borrow enough to satisfy the lien. a) Tell the taxpayer to contact the Advisory Office where their property is located to apply for a Certificate of Subordination of Federal Tax Lien.
    b) Refer the taxpayer to Publication 784 , How to Prepare an Application for a Certificate of Subordination of Federal Tax Lien.
    c) Advise the caller to read the publication BEFORE contacting Advisory.
    Taxpayer wants to SELL property or REFINANCE a mortgage and should be able to satisfy the lien from the proceeds. a) Secure information from the taxpayer to provide a payoff for the NFTL. (See IRM 5.19.12.7.5.2, Request for Payoff.)
    b) Advise the taxpayer that if the proceeds will not be sufficient for the payoff, they need to apply for a discharge or subordination, as applicable, and inform them of that process, as necessary.
    Caller says he is harmed by a Notice of Federal Tax Lien on a delinquent taxpayer with the same or similar name. a) Tell the caller to contact the Advisory Office where the NFTL is filed to apply for a Certificate of Nonattachment of Federal Tax Lien.
    b) Refer the caller to Publication 1024, How to Prepare an Application for a Certificate of Nonattachment of Federal Tax Lien.
    c) Instruct the caller to read the publication BEFORE contacting Advisory.
    Taxpayer wants to get the lien REMOVED as it is affecting their employment. a) Tell the taxpayer they can apply for a Withdrawal of Notice of Federal Tax Lien.
    b) Refer the taxpayer to Form 11277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
    c) Ask the taxpayer whether the tax liability is still owed or the lien has been released.
    d) If the tax liability is still owed, advise the taxpayer to send their request to the Advisory office where they live.
    e) If the lien has been released, advise the taxpayer to send their request to CLO.
    Caller has applied for [any of the above] and has tried to contact Advisory several times, but has had no response. a) Apologize for the delay.
    b) Ask how long ago the application was made.
    c) Check ICS to look up the taxpayer's account. Check the history to determine the status.
    d) Advise the taxpayer of the status and of any questions or additional information needed, as noted in the history.
    e) Verify the taxpayer has the correct contact information for the Advisory office assigned.
    f) If the taxpayer indicates it has been more than 60 days since the application was submitted to the correct office, refer the issue to the Taxpayer Advocate Services using Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order). Input a history to IDRS ENMOD for the taxpayer, stating "911 to TAS."
    g) Input a history to ICS of the actions taken.
    Taxpayer has questions about how the lien shows on their credit report. Advise the taxpayer to contact the credit reporting agency/credit bureau. IRS does not report NFTL filings or lien releases to any credit reporting agency. How the agency shows the document on the credit report and the length of time it appears there is determined by that agency.
    Taxpayer wants to know any of the following:
    - What is the lien for?
    - What does the lien attach to?
    - Why were they not told that a NFTL would be filed?
    a) Advise the taxpayer that answers to common questions regarding federal tax liens can be found in Publication 594, The IRS Collection Process, or by searching "liens" on the IRS website (www.IRS.gov).
    b) Inform the taxpayer to contact their local Advisory Office if they have any additional questions regarding liens after reading the publication or reviewing the website.
    c) If the taxpayer has specific questions regarding their account, refer them to the assigned function/employee or, if not assigned, to the toll free line at 1-800-829-1040.
    Taxpayer requests abatement of the NFTL filing fee (TC 360) a) Advise the taxpayer that filing fees are generally only abated if the taxpayer did not cause the situation leading to the assessments or filing or the NFTL was filed due to an IRS error. See IRM 5.12.3.5.6, NFTL Fee Abatements, for additional information.
    b) If the taxpayer feels one of those factors was present, advise the taxpayer to send a letter to their local Advisory office providing their name, TIN, NFTL information, and reason for requesting the abatement.
    Caller wants to know why you cannot answer their questions. a) Tell the taxpayer that questions that are technical in nature are handled by the Advisory office.
    b) Advise the taxpayer to contact their local Advisory office.
    c) As needed, send Form 4442 to Advisory giving a detailed description of the taxpayer's questions.
  5. When referring a caller to a publication, form, or other document, ask questions to determine the best way for the caller to obtain the document and take action accordingly.

    • The document can be downloaded by the caller from the IRS website (www.IRS.gov).

    • The document can be mailed or faxed to the caller.

    • If circumstances require, necessary information from the document can be provided verbally to the caller.

    Reminder:

    Instructional videos are available on www.IRS.gov to assist the caller in the completion of lien certificate applications. The caller can access these videos, and other information about liens, on the website by typing "liens" in the search box and following the links.

  6. When referring a caller to Advisory, determine the best way for the caller to obtain the contact information shown in Publication 4235, Collection Advisory Group Addresses, and take action accordingly.

  7. If the request is written, use the correspondex Letter 3645C, Taxpayer Inquiry Response/Referral to Another Area.

  8. Do not attempt to answer technical questions about processes not assigned to CLO (e.g., discharges, subordinations). Do not give any opinion on the taxpayer’s chances of securing approval of their request.

5.19.12.8  (04-28-2015)
Field Office Resource Team (FORT)

  1. The FORT is CLO's technical resource for lien law, ALS coordination, and elevated recording office issues. The FORT is available to answer CLO's questions as they relate to NFTLs, releases, and withdrawals.

  2. The ALS coordinator(s) maintains the ALS system and is available to answer questions and update maintenance items on ALS as well as issue secondary passwords.

  3. Different types of referrals will come into the FORT, usually from the CLO teams, but they may also come directly from the recording office, an employee in the field, the Government Liaison, or other internal and external sources. Referrals may involve, but are not limited to:

    • Court fee changes

    • Zip Code updates

    • Billing issues that have not been resolved

    • Technical questions on how to resolve a request

    • Work stoppages due to recording office rejections

    • Suggestions for systemic or procedural improvements

  4. The FORT works with Headquarters staff, as necessary, to address issues beyond their control.

  5. The FORT is also the central point for Taxpayer Advocate Service referrals.

5.19.12.8.1  (04-28-2015)
Recording Fee Issues

  1. CLO receives questions regarding recording fee issues and work stoppages due to missing payment, cover sheets, and confusion on documents. The CLO teams work with the recording offices to clarify and correct any problems that may come up. When the recording office and the teams cannot reach agreement, the issue is referred to the FORT.

  2. Referrals of recording office issues should be sent to the FORT by email or on a Technical Referral form. The referral will become the informational copy and all steps and history should be placed onto the referral. Once the FORT takes ownership of the issue, it sends an informational copy of the issue to the Government Liaison (GL), if appropriate.

  3. The FORT researches the issue and attempts to resolve. As needed, the FORT works with appropriate parties, which may include the CLO team, recording office, Finance, GL, Headquarters or Counsel..

    1. When the FORT resolves the issue, the resolution is documented and all appropriate parties are notified

    2. If the FORT cannot resolve the issue, it must work with Finance, GL, Counsel or other appropriate parties to reach resolution. The FORT should send an informational copy of the issue to Headquarters..

  4. The FORT coordinates implementation of the resolution by working with appropriate parties.

    1. If the FORT team member contacts the recording office, a history is placed on the referral. This referral form will be updated by all individuals who take an action on the issue.

    2. If the FORT brings in Finance, Government Liaison, Headquarters or Counsel, the referral form is sent as an historical document for updating.

  5. The FORT maintains a copy of the closed referral documents for one year. These types of issues can be used for analysis and educational purposes.

  6. Issues sent to the FORT for resolution are considered a work stoppage. The FORT must make contact with the recording office within two (2) business days after receipt. Resolution may take longer. Interim guidance must be given to the referring lien team within three (3) business days. Resolution should be achieved as soon as possible.

  7. Document the ALS voucher history as well as the file copy of the BSV if a work stoppage occurs.

5.19.12.8.2  (04-28-2015)
Filing Estate Tax Lien Documents

  1. Estate tax liens are filed on Forms 668-H or 668-J, Notice of Federal Estate Tax Lien Under Internal Revenue Laws. Notices of estate tax lien are not created on or otherwise loaded to ALS. The Forms 668-H and 668-J are manually prepared by the Advisory Estate Tax Group.

    Note:

    Notices of estate tax lien are different from NFTLs filed against the estate. Forms 668-H and 668-J are for unique liens for special estate tax elections provided by the IRC. The estate can still be liable for regular assessments made under IRC § 6321. These would be shown on Form 668(Y)(c). Requests for regular NFTLs should be processed according to standard procedures. See IRM 5.5.8.1.1, Comparison Chart Federal Estate Tax Liens, for further details.

  2. Estate tax lien documents are processed through the FORT. Forward any Forms 668-H or 668-J received by the CLO teams to the FORT.

  3. All estate tax lien documents must be tracked. The tracking includes the following information:

    • Name of estate

    • TIN, using a "V" ( or occasionally "W" ) definer

    • Date received in CLO

    • Originator (requestor) of the Form 668-H or 668-J

    • Recording office for filing

    • Date sent to the recording office

    • Voucher number of the billing support voucher (BSV) used to forward to the recording office

    • Date recording information received back in CLO.

    • Date document was sent back to the originator.

    • Whether the Form 3210 included a request for a TC 360 and 582 input.

      Note:

      All Forms 668-J should have a TC 360 and 582 input. Form 668-H only have a TC 360 and 582 input upon request by Advisory.

  4. Acknowledge receipt of the lien document by returning the Form 3210 to the originator.

  5. Generate a separate voucher for the estate tax lien document using the ALS voucher program.

  6. Determine the amount of the recording fee charged by the recording office (to file and to release) by checking the ALS court screens. Due to changing fees and other special requirements, if there is no indication that it was done recently, verify the amount by calling the recording office. Document the voucher history with the name of the person who verified the amount.

    1. Input the fee to record the notice of estate tax lien on the voucher program for use when filing the lien document.

    2. Note the entire recording fee for subsequent posting of the TC 360.

    3. Note the release fee for when the release of the estate tax lien is filed.

  7. There are occasions when the court may require special handling for estate tax lien documents. Refer to any special requirements the court may have and ensure these requirements are listed on the ALS MAINTXC screen.

  8. Once the voucher is built, send the estate tax lien document(s) to the recording office via regular mail.

  9. When the notice of estate tax lien has been recorded and received back from the recording office, input the TC 360 and TC 582 as applicable.

    1. Input a TC 360 and TC 582 for ALL Forms 668-J filed.

    2. Input a TC 360 and TC 582 for Forms 668-H ONLY when requested by the Advisor, usually on the Form 3210. These inputs will be on MFT 52 for module 000000

      Note:

      The transaction date of the TC 582 should be the date the notice of lien was mailed to the recording office. The TC 360 should be the date the notice of lien was recorded.

  10. When the recorded document is returned, close out the tracking of the document by inputting the recording information and mail the recorded document to the originator using a Form 3210. Update the voucher history on ALS.

  11. Review the tracking document monthly to ensure the notices of estate tax lien submitted to the recording office more than 90 days prior have been recorded and returned. If the lien document was not recorded in this time frame, review the voucher program to determine whether the estate tax lien document was rejected by the recording office.

    1. If the recording office rejected the lien document and it was returned to CLO, update the tracking document to show the latest date the lien document was mailed to the recorder. Work the reject following standard procedures.

    2. If the lien document was never rejected, contact the recording office to determine the status of the filing. Notify the originator of the findings.

  12. Store the tracking information for one year from when the recorded document was returned to the originator.

  13. Process estate tax lien releases in a similar manner as described above.

    1. Review IDRS for a posted TC 582 and, as necessary, input a TC 583 for ALL Form 668-J releases and for Form 668-H releases as requested by the Advisor.

      Note:

      The transaction date of the TC 583 should be the date the release was mailed to the recording office.

  14. Retain Forms 3210 and applicable documents relative to estate tax liens for a minimum of 18 months.

  15. If a request for payoff or release of lien is received on an estate tax lien do not complete the request. Refer the request to Advisory's Estate Tax Group.

5.19.12.9  (04-28-2015)
ALS Inventory Listings

  1. ALS produces several listings for CLO's review to ensure actions are taken on lien documents in ALS that could not be achieved systemically.

  2. Some of the listings pertain to problems in the systemic posting of information from ALS to Master File, including the:

    • TC 582, which indicates a NFTL was filed,

    • TC 360, which reflects the cost of filing the NFTL and the future release, and

    • TC 971 AC 252, which indicates the CDP notice was issued.

    Note:

    ALS and Master File exchange information on a weekly basis to upload the transaction codes for NFTLs processed through ALS. Additionally, ALS receives information from Master File, including notification when modules are satisfied.

  3. Some of the listings pertain to issues in the interface between ALS and other systems, including the Integrated Collection System (ICS) and Automated Collection System (ACS).

5.19.12.9.1  (04-28-2015)
TC 360 Rejects

  1. When a NFTL is filed, the taxpayer's account is assessed a TC 360 for the amount the recording office charges for filing and releasing the lien. The TC 360 posts to the NFTL module with the oldest assessment date.

    Note:

    ALS does not send a TC 360 to Non-Master File (NMF) accounts. TC 360 must be manually entered on NFTLs for NMF modules. These NFTLs contain a TIN suffix of "N" .

  2. During the upload process if there is a mismatch between ALS and Master File of information for the module the TC 360 will be rejected. The notification of the rejection will be listed on the TC 360 reject listing.

  3. Two listings are generated to the reports section of the print queue.

    • The listing entitled "XX.360_errXX.mmdd" lists accounts on Master File.

    • The listing entitled "NMF_360_XX.mmdd" lists accounts on Non-Master File.

  4. The listings are dated and identify the cause for the rejection of the TC 360, the TIN, name control, MFT, tax period and SBSE area. Review the NFTL on ALS and match the entity and tax module information with IDRS.

    If the rejection was caused by a... Then...
    Name control mismatch Review the entity on IDRS to determine the extent of the problem.
    a) If the name was in error, request an amended NFTL. See IRM 5.19.12.2.3, Resolving Errors on NFTLs.
    b) If only the name control is incorrect, edit the name control on ALS and manually assess the TC 360.
    MFT mismatch Create a Not to Be Filed NFTL on ALS and manually assess the TC 360. See IRM 5.19.12.2.3.3, Not to Be Filed NFTL.
    Tax period mismatch Create an amended NFTL on ALS. See IRM 5.19.12.2.3, Resolving Errors on NFTLs

    Note:

    Do not input a TC 360 on accounts that are in IDRS status 12.

  5. When resolving unpostable TC 360s, use the unpostable date for input. If the unpostable date is not available, use the date of the report.

  6. Generally, when the TC 360 is rejected the TC 582 will also be rejected. When working the TC 360 listing, address the unpostable TC 582, if present on IDRS.

  7. NMF requires coordination with the Non-Master File Team in Submission Processing in order to ensure the TC 360 is posted to the account.

  8. This report should be worked within five (5) business days after the date of receipt.

  9. Report time under OFP 810–69130.

5.19.12.9.2  (04-28-2015)
TC 971 SIA Error Report

  1. A TC 971 AC 252 is posted to Master File to indicate the CDP notice (Letter 3172) was issued for the NFTL filing. For NFTLs processed through ALS, the TC 971 AC 252 is triggered by the printing of the voucher for the NFTL and the code is posted to each module on the NFTL.

  2. During the upload process if there is a mismatch between ALS and Master File of information for the module, the TC 971 will reject. The notification of the rejection will be listed on the TC 971 Standardized IDRS Access (SIA) error report.

    Note:

    See the chart in IRM 5.19.12.9.1, TC 360 Rejects, for rejection causes.

  3. The listings are dated and identify the cause for the rejection. Generally, when the TC 971 AC 252 is rejected, the TC 360 will also reject and the TC 582 will go unpostable. Follow the procedures in the chart in IRM 5.19.12.9.1, TC 360 Rejects, to correct the cause for the rejection.

  4. When an amended NFTL is filed to correct a tax period, a new CDP notice and TC 971 AC 252 will be systemically generated. For all other corrective actions, manually input the TC 971 AC 252 to each module on the NFTL.

    Note:

    When resolving unpostable TC 971 AC 252, use the unpostable date for input. If the unpostable date is not available, use the date of the report.

  5. This report is to be worked within five (5) business days after the date of receipt.

  6. Report time under OFP 810-69130.

5.19.12.9.3  (04-28-2015)
MODSAT - Satisfied Module Rejection Report

  1. Each week, Master File downloads to ALS a data extraction of the modules that went to status 12 and had an open NFTL indicator (TC 582). Through the MODSAT program, those modules are marked as satisfied on ALS. MODSAT also generates a listing of those modules from the extract that could not systemically be marked as satisfied.

    Note:

    A mirrored report NMF SATMOD Reject Listing is produced from a match done between the automated Non-Master File (ANMF) and ALS. Both reports are worked the same way.

  2. The rejection of the satisfied indicator by ALS may be the result of not finding the corresponding module on ALS due to one or more of the following conditions:

    • TIN does not match with ALS TIN.

    • TIN did match, but MFT and/or tax period did not match.

    • A manual NFTL was filed and not loaded to ALS. .

    • A module on a NTBFL was satisfied and the module on the original NFTL needs to be marked satisfied.

  3. The rejection may also be the result of the module having a condition that limits the systemic release such as a restricted interest/penalty freeze or bad check indicator.

  4. MODSAT produces two different reports, both which generate on Tuesday and appear in the Area 27 print queue on Wednesday.

    • SAT_REJ is for normal workable rejects.

    • SAT_NF is for entity not found rejects

  5. To resolve the items on the listings there are two functions that can be used.

    • SAT is used to satisfy the module and will also close the item from the report.

    • RSAT is used to close the module from the report when the module cannot be found on ALS.

  6. Using the tax module and TIN information from the reject listing, research ALS and IDRS, if necessary, to identify the module on a NFTL in ALS. Take appropriate action according to the table below.

    If... Then use...
    The module is found on ALS and the TIN is correct SAT to input the satisfaction indicator for the module on ALS.
    The module and TIN cannot be located on a NFTL on ALS RSAT with closing code "N" to indicate there is no action to be taken and remove the case from the report.
    The module is found on ALS but the TIN is incorrect SAT to input the satisfaction indicator for the module on ALS and
    RSAT with closing code "S" to close the module from the listing.
  7. Refer to the ALS User Guide for direction on how to input SAT and RSAT.

  8. Using SAT will cause the satisfaction indicator for the module on ALS and update the RSAT screen. When the lien module is located and the module is satisfied, DO NOT USE THE RSAT SCREEN TO CLOSE THE MODULE FROM THE LISTING.

  9. When searching RSAT by the TIN, there can be multiple modules found. Be sure to address the correct module and do not edit closed modules. Look for the module that has no closing entry.

  10. For SAT to properly generate the closing indicator on ALS, the module information entered to SAT must match that shown on the NFTL. Occasionally, differences in the tax period formats used by Master File and ALS may cause a discrepancy (see example below). When an input to SAT does not take, print a facsimile of the NFTL to verify the tax period ending date and re-input the information to SAT as needed.

    Note:

    A tax period is input to ALS showing an ending date of 12/13/2012. Because Master File uses the format YYYYMM for its ending dates, the TC 582 posts on Master File to the module ending 201212. When the module is satisfied, Master File information is downloaded to ALS and the period ending date is converted by ALS to its MM/DD/YYYY format as the 12/31/2012. Since this tax period ending date does not match the one input to ALS for the NFTL, the satisfied module indicator rejects.

  11. This report should be worked within five (5) business days after the receipt date.

  12. Time working this report is to be reported under OFP 810-69130.

5.19.12.9.4  (04-28-2015)
ACS/ICS Rejects

  1. The ACS Reject Report is generated each time an ACS/ICS data is loaded to ALS and shows NFTL requests that are rejected, generally due to invalid data and form type, incorrect Zip Code, or court not found in ALS.

  2. To access the report from the print spool, select "ACS.mmdd" then select and print "acs.rejects."

  3. CLO actions on these listings are limited to cases rejected for Unknown Zip Code or Court Not Found.

  4. Verify that the Zip Code shown on the listing is correct for the address using the USPS web site (http://zip4.usps.com/zip4/welcome.jsp).

    1. If the Zip Code is correct on the request, notify the ALS coordinator to add the Zip Code/Court to ALS.

    2. If the Zip Code is incorrect on the request, take the necessary actions to correct the request.

  5. If the reject was for another reason, follow the table below.

    If the rejected NFTL was input through... Then...
    ACS Notify ACS support in the Cincinnati Campus about the reject
    ICS Take no additional action. The requestor will receive a notice systemically from ICS.
  6. Listings requiring CLO actions should be monitored until all actions are completed. Managerial review should be completed on the original listings to ensure correct closing actions are completed.

  7. Systemic rejects must be resolved by CLO within three (3) business days after the receipt date. Prompt processing allows timely filing of the NFTL.

  8. Report time under OFP 810–69130.

5.19.12.9.4.1  (04-28-2015)
ICS POA Reject

  1. ICS POA rejects are associated with NFTLs systemically loaded to ALS through ICS. They are caused when the POA information is incomplete or contains invalid city, state, or Zip Code information.

  2. To access the report from the print spool select "ACS.mmdd" then select and print "poa_rejects."

  3. Research IDRS to obtain the correct information to complete the POA input.

  4. Using ALS NOTADD, access the SLID shown on the listing and input the correct POA information.

    Note:

    For NFTLs filed in ELF courts, POA information cannot be input on ALS until the ELF filings have been approved.

    See IRM 5.19.12.2.1.2, Power of Attorney/Co-obligor.

  5. Listings requiring CLO actions should be monitored until all actions are completed.

  6. The listings must be resolved within three (3) business days after the receipt date.

  7. Report time under OFP 810–69130.

5.19.12.9.5  (04-28-2015)
Potential Lost NFTLs

  1. ALS generates the Potential Lost Lien Report (PLL) on the 5th day of each month. The report lists NFTLs that have been created but no recordation date has been entered into the court screen on ALS. This report must be worked monthly.

  2. Recording information is used by the recording office to associate any subsequent documents with the original NFTL. ALS prevents subsequent action from being taken on a NFTL without the recording information input.

    Example:

    A NFTL is filed in XYZ county on page 435 of book 1289. The IRS subsequently wants to withdraw the NFTL. For the recording office to show the withdrawal of the appropriate NFTL, they must reference the recording information of the original NFTL.

  3. Several things can happen to cause a NFTL to appear on the PLL,

    • Recording offices can take days, weeks and, at times, months to record the NFTL and return it to the IRS. If the recorded NFTL is not timely returned, recording information cannot be input to ALS.

    • In certain situations, a revenue officer may manually prepare a NFTL and hand carry it to the recording office. Revenue officers are required to send the recording information to CLO so ALS can be updated with the information. Sometimes, the recording information is not sent to CLO for input to ALS.

      Note:

      A SLID beginning with 27xxxxxxx that has not appeared on a voucher may indicate that it was hand carried by a revenue officer.

    • On occasion, recording information for a NFTL may be input incorrectly under the wrong SLID, which causes the NFTL to appear as not being recorded.

  4. The PLL shows NFTLs that were prepared at least 90 days prior to the listing. This time frame is used to allow for the recording process to be completed. NFTLs that require a subsequent action within 90 days of the preparation date must to be worked immediately. Do not wait for the NFTL to show up on the PLL.

    Example:

    Advisory approves and requests a withdrawal on a NFTL that was prepared 2 weeks ago. The NFTL has not come back from the recording office. Research must be done to secure the recording information so the withdrawal request can be completed.

  5. Some issues that cause a lost condition can be prevented. When working the 668Z Listing, immediate research and corrective action must be taken. Do not wait until the NFTL has reached the PLL to complete the research. See IRM 5.19.12.3.3.2, Resolving the 668Z Listing.

  6. Take the following actions to secure recording information when working the PLL.

    1. Ensure any CRD from the recording office has been input to ALS by checking for any batches of recording data received and awaiting input.

    2. Verify whether the NFTL was rejected by the recording office and has been re-sent, causing a delay in the recordation.

    3. Review the ALS and voucher history to determine if the NFTL was pulled from the batch for some reason.

    4. Check to see if the batch was returned from the recording office for corrections and, if so, whether enough time has passed for the recording information to have been received.

      Note:

      Review of the voucher program will show if all other NFTLs on the voucher received recording information. This information should always be verified at the time recording information is entered. See IRM 5.19.12.4.1.1, Court Recording Information..

    5. Research the status of the NFTL using an available search engine such as Accurint, Netronline, or the local recording office website.

    6. If the NFTL was filed by Field Collection, contact the RO and ask if they have the recording information.

    7. When all the above actions have been completed and questions regarding the recording data remain, contact the recording office, explain the situation, and request the information. If the recording office will not give the information, refer the situation to the FORT for resolution.

  7. When the CRD is secured for the NFTL, input it to ALS.

    1. If the lien is released, print the release and add it to the next voucher for the recording office. If no voucher is generated the next print day, generate one for the recording office.

    2. For information on input of CRD for any ELF courts, see IRM 5.19.12.12.1Manual Input of Recording Information to ELF Offices.

  8. When the CRD cannot be determined for the NFTL, check IDRS for the status of the account and the modules. It may be appropriate to remove the NFTL from ALS, which will place the NFTL into "lost lien" status. Take the necessary actions as shown in the chart below.

    Caution:

    All available methods of research must be utilized before removing the NFTL from ALS. Once a NFTL is removed, a release of the lien will not be generated.

    If IDRS shows... And the modules are in.. Then...
    The NFTL modules have no balance due Status 12 Remove the NFTL as a lost lien
    All the NFTL modules have a balance due Any status except 72 Print the NFTL and add to the next voucher for the court. If no voucher is generated on the next print day, generate one for the court.
    All the NFTL modules have a balance due Status 72 Remove the NFTL from ALS as lost and
    secure email the PLL Notification Memo (Exhibit 5.19.12-3) to the function assigned the case to determine if a replacement NFTL request is needed.
    Only some of the NFTL modules have a balance due Any status except 26, 71, or 72 Remove the NFTL from ALS as a lost lien and
    create a new NFTL for the balance due modules using available information.
    Only some of the NFTL modules have a balance due Status 26, 71, or 72 Remove the NFTL from ALS as lost and
    secure email the PLL Notification Memo (Exhibit 5.19.12-3) to the function assigned the case to determine if a replacement NFTL request is needed.
    Status Refer to...
    26 RO
    71 Centralized Offer in Compromise (COIC)
    72 with TC 520 cc 60-67, 81, or 83-89 Centralized Insolvency Operation (CIO)
    72 with TC 520 cc 70-75 or 80 Advisory office for the applicable state
  9. For any NFTLs marked as "lost" on ALS and not being re-sent, reverse the original TC 360 and input a TC 583 DC 4 on IDRS. If a new NFTL is subsequently created, a new TC 360 and 582 will be generated.

  10. If a PLL was worked and a NFTL was re-sent for recordation, due to the timing it may show up on the following month's PLL. This is considered a roll-over and will not be overage.

  11. ALWAYS input a history on the Potential Lost Lien Report and ALS, if applicable, stating "Lost Lien worked" and what action was taken. For example, a history could state: Lost lien research was completed using (Accurint, Netronline, and/or recording office web page) on (give date) closing lien from lost lien report.

  12. Receipts will be counted for each team for the daily inventory. A closure occurs when the Court Recording Data is entered or the NFTL status is changed to “lost” in ALS.

  13. The FORT is generally responsible for printing the PLL, distributing it to the applicable teams to work, and monitoring the overall counts. The CLO teams are responsible for resolving the NFTLs on the PLL, monitoring their inventory, and elevating issues of chronically-slow recording offices.

  14. Report time working PLL issues under OFP 810–69130.

5.19.12.10  (04-28-2015)
GUF Unpostables

  1. The Generalized Unpostable Framework (GUF) provides listings of the unpostable TC 582 cases. These unpostable listings are located on Control D, GUF 5547 file.

  2. The FORT accesses the Control D GUF files weekly to print, assign and distribute to the CLO teams. The teams are responsible for resolving the unpostables.

  3. Common unpostable resolutions are found in Exhibit 5.19.12-1, Unpostable Job Aid. The resolutions shown may not fit every situation; each case resolution is based on the individual situation.

  4. In most cases, the TC 582 should be re-input using the date of the unpostable TC 582, which should be approximately seven (7) calendar days within the creation date of the NFTL.

    1. If there is no unpostable date, use the date the NFTL was created.

    2. If the TC 582 continues to unpost (i.e., does not post after two inputs), DO NOT keep re-inputting the TC 582. See your Manager/Lead for guidance.

  5. If requesting an amended NFTL to correct the unpostable condition review ALS to ensure court recording data is present. If CRD is not present, use the best research methods available to obtain recording information. See IRM 5.19.12.2.3, Resolving Errors on NFTLs.

  6. Be sure to close the IDRS control base after IDRS actions are completed.

  7. When research shows that an account has not been established (prompt assessments), close the IDRS control base and notify the revenue officer that the NFTL filed indicator on IDRS could not post. The revenue officer is responsible for monitoring IDRS for establishment of the account and ensuring that the TC 582 and TC 360 are posted. See IRM 5.12.7.12.2, Lien Notice Filing Indicator (LFI).

  8. When the account is on NMF, contact the Non-Master File Team in Submission Processing to ensure the TC 582 is posted.

  9. While researching, if it is identified the TC 360 and 971 AC 252 also did not post, research the unpostable code in Document 6209 and resolve the unpostable condition appropriately.

  10. Document actions taken on the Unpostable Excel sheet.

  11. Unpostables should be closed within five (5) business days after receipt of the listing.

  12. Report time closing unpostables under OFP 810-69130.

5.19.12.11  (04-28-2015)
ALS Maintenance

  1. Maintenance of the ALS database is generally the responsibility of the ALS functional coordinator.

  2. All functions of the system must be monitored by management to ensure all NFTLs and related documents processed through ALS are produced timely and correctly.

  3. All available system logs must be monitored and steps taken to notify management if irregularities exist so that corrective actions can be taken.

    1. Logs are located in the ALS Lien Application Menu and the Print Lien Document Queue Menu under ALS LOG FILES.

      Note:

      The reports and logs generated on the Automated Lien System are specified in the ALS User Guide.

  4. The following subsections address common maintenance issues addressed by the ALS coordinator. For details on ALS tables, logs, and reports see the ALS User Guide.

5.19.12.11.1  (04-28-2015)
Menus

  1. A menu is a set of options used to move from place to place within an automated application. Each option will either execute a program or take the user to another menu.

  2. Generally, menus are standardized based on the position type and permission level of the employee. Menus can be developed by the ALS coordinators as needed. Refer to the ALS User Guide for information on how to create menus.

    Reminder:

    Literal commands can be entered from the menu prompt to go directly to a specific function. See the ALS User Guide for details.

5.19.12.11.2  (04-28-2015)
Employee Access and Maintenance

  1. Each employee using ALS has permissions specific to his/her job responsibilities. For a listing of the normal permissions allowed for each position type refer to IRM 5.12.1–1 , ALS Permissions Chart.

  2. Employees requesting access to ALS must complete an Online 5081. Employees will not be established on ALS if they do not complete the Online 5081. See the ALS User Guide for details on requesting ALS access.

  3. Employees needing more than general research capabilities on ALS must request a secondary password in ALS to gain the additional functionality. This secondary password is requested with the Online 5081 requests, but is approved by the ALS Coordinator.

  4. The ALS Coordinator is notified by email when there are requests awaiting their approval and approves the Online 5081 as the system administrator.

  5. When the requests are not complete with all necessary information, the request is rejected by the ALS Coordinator and the additional information requested.

  6. Generally, the permissions established for the employee by their position type should not be changed. If a variation is justified, modification of the existing permissions (or the deletion of permissions, as necessary) is done through the Online 5081 system by the ALS Coordinator.

    Exception:

    CLO employees can request change to established permissions through an email to the ALS Coordinator in FORT.

  7. When an employee uses a pseudonym, the employee must identify their real name as well as the previously-approved pseudonym on the online 5081 request.

  8. Request for password reset to ALS (i.e., UNIX password) is done through the Online 5081 system or calling the Enterprise Help Desk. Request for second level password reset is completed by emailing the ALS Functional Coordinator at *SBSE CLO FORT.

5.19.12.11.3  (04-28-2015)
Court Tables

  1. Within ALS are tables that include all recording offices available for document filing. These recording offices ("courts" ) are assigned a five or six-digit ID number.

  2. The court table is maintained by the ALS Coordinator. Refer to MAINTXC screen on ALS for the appropriate court number. Because the court numbers are linked to all the historical documents in ALS, NEVER REMOVE A COURT ID FROM ALS. Always coordinate with the ALS programming staff if it is believed a ID number should be removed.

5.19.12.11.4  (04-28-2015)
Zip Code Tables

  1. When a NFTL is created in ALS, the filing location defaults to the recording office corresponding with the taxpayer's Zip Code. These default filing offices are determined by the Zip Code tables. Occasionally, due to changes in Zip Code alignment, the use of previously unused Zip Codes, or restrictions regarding the Zip Code, the tables must be updated.

  2. The ALS Coordinator is responsible for maintaining the Zip Code tables. The ALS function Maintxz is used for this purpose.

  3. The Coordinator may receive referrals regarding unknown or incorrect Zip Codes; however, most updates are driven by the Zip Code report portion of the ACS/ICS rejects. See IRM 5.19.12.9.4, ACS/ICS Rejects..

  4. Change requests should include the following:

    • Zip Code, including the 4 digit extension, when necessary

    • The recording office that has been identified as the court of record

    • If the Zip Code is currently in ALS, to what recording office the Zip Code points and to what it should be changed

    • If the request is for an addition of a new Zip Code, to which recording office the Zip Code should point.

  5. When requests for changes or additions are made, verify the Zip Code is not in a disaster area that has had enforcement activity suspended.

    1. If the Zip Code is in a disaster area, input the Zip Code and the freeze so that no new NFTLs can be filed.

    2. If in doubt whether the Zip Code is affected (e.g., an entire county is not impacted), contact the Disaster Coordinator for guidance.

  6. Keep a listing of all Zip Code changes. Submit these changes quarterly to the Headquarters Analyst for ICS, so that ICS can be updated with the changes and additional Zip Codes. ICS updates their system quarterly.

5.19.12.11.5  (04-28-2015)
POD Key Listing

  1. Each week, ALS receives an extract from ICS of its nationwide employee table. Based on the current employee ID, name and new employee number, badge number, area code and phone number, information in ALS will be updated to match information transmitted by ICS.

  2. ICS employee information is updated systemically in ALS, with the exception of the Post of Duty (POD) code. Use Maintro to add the POD code. Also use Maintro to add or modify information for all other ALS users in the same POD.

  3. Requests for POD code updates outside the systemic reports should be on the RO POD ALS Update Form and emailed to *SBSE CLO FORT.

  4. Revenue Officers cannot file NFTLs until the POD is corrected. It is imperative the report is worked by the FORT on the day it is generated.

5.19.12.11.6  (04-28-2015)
Voucher Removal/Correction

  1. Routine corrections to vouchers (e.g., changing fee, adding/deleting lien document) can be done by the CLO teams. See IRM 5.19.12.3.4, Editing the Billing Support Voucher. Significant changes to the voucher or the removal of it are referred by the teams to the ALS coordinator by sending an Email to *SBSE CLO FORT.

  2. There are occasions when it is necessary to remove a voucher from ALS. The Coordinator can remove the voucher, but it is only to be done when:

    • it has been verified that the voucher has not been mailed to any of the recording offices on the voucher and no mailing date has been input, and

    • the request has been approved by the CLO Department Manager.

  3. The ALS Coordinator also corrects dates that have been entered into the date field of the voucher program. Permission to change the date may be given to CLO Department Managers; however, tracking of these changes needs to be maintained by the ALS Coordinator.

  4. Requests for voucher changes and the tracking of the vouchers should contain the following:

    • Voucher number

    • Recording offices involved

    • Reason for removal/correction

    • Department Manager approving the request

  5. Vouchers being removed must be tracked by the FORT to verify they have not been previously requested and for review purposes.

  6. The listing of voucher changes is maintained for 6 months.

5.19.12.12  (04-28-2015)
Electronic Lien Filings (ELF)

  1. The majority of lien documents are filed by paper and mailed through the USPS. There are some recording offices that do receive information electronically. Non-paper filings are considered Electronic Lien Filings (ELF).

  2. The recording offices that currently file NFTLs and releases electronically are:

    • All recording offices in the state of Minnesota

    • United States District Court (USDC) in Boston, MA

    • Secretary of State (SOS), CT

    • Los Angeles, CA

    • Secretary of State (SOS), CA (partial)

    • City of New York (partial)

  3. Information is exchanged with the ELF recording offices in various ways by ALS. Also, not all lien documents can be provided electronically with all the recording offices. For example, revocation notices and amended NFTLs for Minnesota recording offices must be filed by hard copy (paper) but those same documents for the USDC can be filed electronically. See the ALS User Guide for further details on the differences between the ELF recording offices.

  4. The FORT has general oversight responsibility for the ELF exchange process; however, the CLO Teams are responsible for the normal processing of the lien documents. Coordination between the person delivering the ELF files and the team assigned the recording office is essential.

  5. NFTLs prepared for ELF recording offices must be approved from the ALS queue each Tuesday and Thursday by the applicable Team Manager. The NFTLs being approved should be for the same range of dates as all other lien documents in that print batch. Approval on ELF is equivalent to the print process in triggering the CDP notice.

    1. The approval of ELF filings produces a document file the day after the approval is done. This file is delivered to the recording office for the recordation of the lien documents.

      Reminder:

      NFTLs must be approved prior to the input of the POA or Co-Obligor information to ALS.

    2. Lien releases do not go through an approval process since they do not trigger a CDP notice. Each day a file is generated for the prior day. When delivery is made to the court there will be multiple release files and one NFTL file.

  6. Vouchers prepared for the ELF recording offices should follow standard procedures, with certain exceptions.

    1. Ensure the voucher for the ELF recording office matches the NFTLs approved and other lien documents for filing.

    2. Identify the voucher for ELF recording offices with the payment definer of "E" .

    3. Date stamp the voucher with the date the file is delivered.

  7. Maintain a log of all files sent to, and returned from, the ELF recording offices with the number and type of errors or rejected records.

5.19.12.12.1  (04-28-2015)
Manual Input of Recording Information to ELF Offices

  1. NFTLs for ELF recording offices are electronic files on ALS. Recording information cannot be manually input into an electronic file using the regular CRD process. The ALS Coordinator must add the recording information into a file for upload to ALS.

  2. If a NFTL filed through ELF does not show recording data but through research the data is located, send an email to the FORT with the:

    • SLID number and

    • court recording data found.

  3. When recording information files are uploaded to ALS and notification is given during the upload process that some of the recording information cannot be loaded, review the information. The following are some common scenarios that could occur and how to resolve.

    If... Then...
    There is a transposition of numbers (i.e., SLID not correct) a) Notify the recording office of the situation.
    b) Determine which SLID the information is for.
    c) Correct the file and upload the information again.
    The recording information was previously loaded Determine if this is a duplicate filing and take appropriate action. See IRM 5.19.12.2.4, Duplicate Filings of NFTL.
    The recording information is for a release of lien and not the NFTL itself No action is required.

5.19.12.13  (04-28-2015)
Special Circumstances

  1. In this section are types of special circumstances that require special handling or contact with the appropriate function and/or coordinator.

5.19.12.13.1  (04-28-2015)
Signature of Lien Documents

  1. Although not required for legal sufficiency, lien documents are signed by an IRS official prior to filing to facilitate the recordation process with the recording offices. The lien documents printed in the CLO for recordation and taxpayer copies of the documents printed at CPS are imprinted with a digitized signature of a delegated official. See IRM 1.2.44.5, Delegation Order 5-4 (rev. 3).

  2. When the person whose signature is on the lien documents changes, programming must be updated in ALS and at CPS with the new signatory's name, title, and signature

  3. CLO management is responsible for notifying Collection Policy, the ALS programming staff, and/or other applicable when changes to the signature are needed.

5.19.12.13.2  (04-28-2015)
Disaster Protocol

  1. When a disaster is declared, the National Disaster coordinator's office issues the disaster declaration to the IRS and it is posted on SERP.

  2. The FORT coordinates the impacts of the disaster on CLO processing with guidance from Headquarters, as needed.

  3. The FORT takes the following actions.

    1. Provides guidance for the filing of lien documents, including documents already in the print queue, that are located in a Zip Code designated as a disaster area.

    2. Sets the freeze indicator on ALS for all Zip Codes designated with an "O" freeze on IDRS, which will block systemic NFTL requests in those Zip Codes.

    3. Monitors to ensure the freeze indicator on ALS is reversed once the disaster relief time frame has passed.

    4. Communicates to CLO employees what Zip Codes have a disaster freeze so that NFTLs are not created in these Zip Codes.

    5. Determines if the recording office receiving the lien documents is conducting business to determine if releases of lien can be mailed.

  4. In the event the impacted Zip Code relates to an ELF recording office, coordinate with Headquarters on how to proceed.

  5. It is imperative that ALS maintenance tables for recording offices (Maintxc), Zip Codes (Maintxz), and disaster freezes (Maintdisv) are kept current and accurate as these tables interact to ensure disaster freezes are applied to the correct filing locations.

5.19.12.13.2.1  (04-28-2015)
Pending Collection Activity Suspension (-O Freeze)

  1. When a disaster has occurred and the decision for the suspension of collection activity has not yet been made, documents should be processed as normal.

  2. When the FORT is alerted by Headquarters that the potential exists for the -O freeze to be placed on IDRS, the FORT notifies the CLO teams of the situation and what Zip Codes, counties, or states are impacted. .

  3. The FORT notification to the CLO teams should advise that:

    • A decision is pending on the suspension of collection activity (-O freeze).

    • Requests for NFTL creations in the impacted areas should be held pending the -O freeze decision.

    • The teams responsible for the impacted areas should generate two vouchers for the impacted state--one for new NFTL filings and one for releases and other documents--and immediately send the voucher numbers to the ALS Coordinator

    • New NFTLs must not be printed for impacted areas.

    • Processing requests for releases or withdrawals, and their vouchers, should continue.

    • The FORT will provide additional information as soon as it becomes available.

  4. Upon notification from the FORT, the CLO team for the impacted area takes the following actions.

    1. Generate two vouchers for the impacted recording office(s)--one for new NFTL filings and one for releases and other documents.

      Reminder:

      Be aware of NFTLs against a taxpayer in a disaster area filed in other locations.

    2. Immediately relay the voucher numbers to the ALS Coordinator.

    3. Immediately notify the ALS Coordinator of the number of NFTLs in each impacted recording office.

    4. Process the vouchers for releases and other documents as normal.

  5. Following these procedures ensures the NFTLs within the ALS system are held pending the decision to freeze the accounts and enables the site to timely process the lien release filings.

  6. The ALS Coordinator takes the following actions.

    1. Request the ALS Programmers remove the impacted recording offices from "voucher only" for the identified voucher numbers.

      Note:

      If the state has a Secretary of State (SOS) filing requirement, ALWAYS include the SOS voucher in the request.

    2. Verify all Zip Codes within a county/parish/jurisdiction are impacted Zip Codes. When all Zip Codes are not impacted, request a listing from the ALS Programmers of the SLIDs, entity, Zip Codes, and the names of the originators of the NFTLs for the impacted recording offices.

    3. Notify the responsible team that the ALS programmers have removed the NFTLs in the impacted recording offices from the voucher (include SOS, if applicable) and advise the team to process the voucher.

      Note:

      When the voucher is processed, only the recording offices that were not removed will be generated. The documents for the removed recording offices will remain in the queue.

    4. Match the requested listing(s) against the impacted Zip Codes. When the -O freeze is set, the CLO team will use this listing to delete the NFTLs from ALS and notify the originator of the removal of the NFTL.

      Reminder:

      DO NOT give this listing to the teams for deletion of the lien until the -O freeze is set.

    5. Notify the teams that the NFTL vouchers for the state can be processed. This excludes impacted States and, when applicable, SOS.

  7. Once notification is received that the -O freeze is in effect, the FORT immediately takes the following actions.

    1. Notifies CLO employees that the -O freeze is in effect and any requests for NFTL filings in impacted areas should be rejected to the originator. This includes any requests that were held pending the final decision.

    2. Gives the listing of impacted SLIDs received from the ALS Programmers to the responsible team for deletion from ALS.

    3. Advises the responsible team to generate and process a voucher for lien documents for the SOS (when applicable) using the appropriate range of dates. Be sure the range of dates covers all documents that were pending in the queue.

    4. Inputs the impacted Zip Codes to the "MAINTDISV" screen to stop further generation of NFTLs in the impacted area(s).

  8. Upon notification from the FORT, the CLO team takes the following actions.

    1. Returns all requests for NFTL filings in the impacted areas to the originators with an explanation that the -O freeze is in effect and the NFTL cannot be input.

    2. Deletes the NFTLs on the ALS vouchers for the impacted areas that were held pending the disaster determination.

    3. When the entire county is not impacted, uses the listing of impacted SLIDs and Zip Codes provided by the ALS Coordinator to delete the NFTLs.

    4. Processes the vouchers as normal once all impacted SLIDs have been removed.

      Note:

      Only the unaffected recording offices will be shown on the voucher. Review the voucher to verify this

    5. Generates specific voucher(s) for the impacted recording offices.

  9. If the -O freeze is not set, the CLO teams generate vouchers for the recording offices and process as normal.

  10. Regardless of whether an -O freeze is set or not, normal printing schedules should be followed (i.e., Tuesdays and Thursdays).

5.19.12.13.3  (04-28-2015)
Identity (ID) Theft

  1. CLO may encounter situations or receive inquiries from internal and external customers regarding identity theft. CLO refers all cases regarding identity theft to the function assigned the case, which is then responsible to work the case per instructions in their respective IRM (e.g., IRM 5.1.28, Identity Theft for Collection Employees.

    If the account is... Refer to...
    Status 26 RO
    Status 71 Appropriate OIC Unit
    Status 72 with
    TC 520 cc 60-67, 81, or 83-89
    Centralized Insolvency Operation
    Status 72 with
    TC 520 cc 70–75, 80, or 82
    Advisory office where the taxpayer resides
    Status 72 with
    TC 520 cc 76 or 77
    Appeals office
    MFT 31 with a TC 971 AC 104 Innocent Spouse Unit
    Any other status or condition and NFTL filed Advisory office where the taxpayer resides
    Any other status or condition and no NFTL filed ID Theft Team through the Team Manager or Lead
  2. Document the referral in the ALS history, including the date the referral is made, the status, and name of the referred employee or office.

  3. If the assigned office determines that action is necessary to address an NFTL filed against a victim of identify theft, the office will submit a request to CLO following standard procedures. Generally, the request will be for the release of an erroneous NFTL, but in some instances it may be for a withdrawal of the NFTL. See IRM 5.12.3.10, Erroneous NFTL in ID Theft Situation.

  4. Process requests for release or withdrawal following standard procedures.

5.19.12.14  (04-28-2015)
Judicial Foreclosures

  1. CLO may receive requests from the United States Attorney's Office (USAO) for NFTL information relative to judicial foreclosure cases. These requests may be received by fax, E-fax, mail, email, or telephone.

  2. Requests are worked in accordance with the procedures found in IRM 5.12.4.2, Judicial Foreclosures.

Exhibit 5.19.12-1 
Unpostable Job Aid

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Exhibit 5.19.12-2 
Glossary of Common Acronyms and Terms for Centralized Lien Operation

Acronym Definition
ACS Automated Collection Service
AIS Automated Insolvency System
ALS Automated Lien System
AMS Accounts Management System
BMF Business Master File
BSV Billing Support Voucher
CAF Centralized Authorization File
CAP Collection Appeals Program
CCP Centralized Case Processing
CDP Collection Due Process
CIO Centralized Insolvency Operation
CLO Centralized Lien Operation
COIC Centralized Offer in Compromise
CPS Correspondence Production Services
CRD Court Recording Date
CSED Collection Statute Expiration Date
DDIA Direct Debit Installment Agreement
DPC Designated Payment Code
EFT Electronic Fund Transfer
EIN Employer Identification number
ELF Electronic Lien Filing
FMS Financial Management Service
FORT Field Office Resource Team
ICS Integrated Collection System
IDRS Integrated Data Retrieval System
IFS Integrated Financial System
IMF Individual Master File
IRC Internal Revenue Code
IRM Internal Revenue Manual
LFI Lien Filed Indicator
LLC Limited Liability Company
MCAR Mutual Collection Assistance Request
MF Master File
MFT Master File Transaction
MOIC Monitoring Offer in Compromise
NAOC NFTL After Original CSED (aka Portland Lien)
NFOI Non-Field Other Investigation
NFTL Notice of Federal Tax Lien
NMF Non-Master File
NTBFL Not To Be Filed (Notice of) Lien
OIC Offer In Compromise
PDF Portable Data Format
PII Personally Identifiable Information
PLL Potentially Lost (Notice of) Lien
POA Power of Attorney
POD Post of Duty
POL Payoff Letter
RO Revenue Officer
SFR Substitute for Return
SLID Serial Lien Identification Number
SSN Social Security Number
TAC Taxpayer Assistance Center (Walk-in)
TAS Taxpayer Advocate Service
TC Transaction Code
TFRP Trust Fund Recovery Penalty
TIN Taxpayer Identification Number
TM Territory Manager
USDC United States District Court
USPS United States Postal Service
Generic CLO Term Common Reference
County Recording office (e.g., county recorder)
Court Recording office (also an ALS command)
Field Field Collection
Release Certificate of Release of Federal Tax Lien
Revocation Revocation of the release of the federal tax lien
Spool ALS print repository
Voucher Billing Support Voucher (also an ALS command)
Withdrawal Withdrawal of Notice of Federal Tax Lien

Exhibit 5.19.12-3 
Sample Notification of Lost NFTL

This memorandum template is for use by CLO when contacting Field employees about lost NFTLs.

Notification of Lost Notice of Federal Tax Lien


Date:
From: Centralized Lien Operation, Team ------
To:

Taxpayer:
TIN:
SLID(s):

The Notice of Federal Tax Lien referenced above appeared on the Automated Lien System (ALS) Potential Lost Lien Report. This occurs when no recording information is reported for a NFTL within 90 days of its creation.

In accordance with lost NFTL procedures in IRM 5.12.7.14 and 5.19.12.9.5, we researched available sources, but were unable to locate any data indicating the NFTL was recorded. As a result, the NFTL has been removed from the Potential Lost Lien Report and it is no longer an active NFTL on ALS. Also, TCs 583 and 361 have been input to IDRS to reverse the Lien Filing Indicator and filing fee for this NFTL.

Since you are assigned the taxpayer’s case, we are notifying you of the situation so that you can make a determination regarding a replacement for this NFTL. Please take the following actions:

  1. Make a determination whether a replacement NFTL is appropriate for the tax modules on this lost NFTL.

  2. If a replacement NFTL is appropriate, complete Form 12636 and submit it via secure email to the CLO Team shown above. If a replacement NFTL is not appropriate, no further action is required.

No response to this memo is necessary. This situation is no longer controlled by CLO. A facsimile of the NFTL is attached for your convenience. If you have any questions, please call our internal line at 1-800-913-4170.

Exhibit 5.19.12-4 
Sample Letter to Recording Office on Treasury Offset Program

This letter template is for use by CLO when contacting recording offices about TOP offsets and their requirement to file lien documents despite the offset.

[Recording Official]
[Recording Office]
[Address]

re: Billing Support Voucher: [BSV #, Date of BSV]

Dear [Name of Recording Official, if known]

This letter concerns lien documents returned by your office without being recorded. The Internal Revenue Service Centralized Lien Operation (CLO) submitted [xxx] Notices of Federal Tax Lien, [xxx] Certificates of Release, and [xxx] Withdrawal notices to your office for filing with the Billing Support Voucher (BSV) referenced above. Your office returned the lien documents citing non-payment of the filing fees.

The Internal Revenue Service did, in fact, pay the fees at issue. Simultaneously with the filings, a certified payment of $[xxxxx] was transmitted from the Department of the Treasury Financial Management Service (FMS), the agency that disburses lien filing fees. The payment, however, was subject to an administrative offset by the Treasury Offset Program to satisfy a delinquent debt owed by another agency of [insert state/ county]. To show that FMS made the post-offset payment, a payment of $1.00 (or other reduced amount) was deposited into your bank account.

The Treasury Offset Program (TOP) is a federal centralized offset program administered by FMS to collect delinquent debts owed by vendors to other government agencies. Before a vendor receives a federal payment (including payment of lien filing fees), FMS searches the database to determine whether the jurisdiction as a whole owes a federal debt. If a debt is found, FMS offsets the payment to apply toward the delinquency and sends a payment of at least $1.00 to the vendor as indication of payment. Enclosed is additional information regarding TOP. You can also find information about TOP at http://www.fms.treas.gov.

A notice of federal tax lien (NFTL) preserves the federal government’s lien priority in a delinquent taxpayer’s property by giving notice to certain competing creditors. Therefore, it is vital that recording offices timely file and record each NFTL and, once satisfied, each certificate of release to prevent harm to the taxpayer. Moreover, the Internal Revenue Code accords to taxpayers the statutory right to a release of the tax lien within 30 days of satisfaction.

{Optional paragraph if applicable} [Insert State] has adopted a version of the Uniform Federal Tax Lien Registration Act or similar legislation at [insert applicable state law reference]. State law requires you to file federal lien documents regardless of payment. Moreover, as demonstrated, the federal government has paid the filing fees.

The government has both a common law and a statutory right of setoff. United States v. Tafoya, 803 F.2d 140, 141-42 (5th Cir. 1986). “The government has the same right which belongs to every creditor, to apply the unappropriated moneys of his debtor, in his hands, in extinguishment of the debts due to him.” United States v. Munsey Trust Co., 332 U.S. 234, 239 (1947). Your office must work with the State function that incurred the federal debt to internally account for the funds. Your office is not permitted to discontinue filing federal tax lien documents because of the offset situation.

We request that your office immediately record the lien documents referenced above and any other documents you receive from the Internal Revenue Service in the future. If you have any questions on this matter, please contact me at the number shown above.

Sincerely,

[Name]
Operations Manager
Centralized Lien Operation

Enclosure

Exhibit 5.19.12-5 
Sample Letter to Recording Office on Rejected Lien Documents

This letter template is for use by CLO when returning lien documents to recording offices to correct an IRS filing error. The text detailing the specifics of the situation should be modified to fit the situation.

[Recording Official]
[Recording Office]
[Address]

Dear [Name of Recording Official, if known]

Enclosed please find the lien documents and Billing Support Voucher [BSV #], originally dated [BSV date] you returned to our office citing the following error:
□ Payment issue
□ Duplicate filing
□ Missing or incorrect recording data for related document
 SLIDs: ________________________________________________________
□ Other:

We apologize for our error and have corrected the situation in the attached documents. We ask that you record these documents as soon as possible.

We appreciate your feedback on this situation as it helps us to improve our quality. If there is a problem with recording documents that we send you in the future, the fastest way to resolve the problem is to contact us on our toll-free hot line at 1-800-913-4170. This line is always answered by a live operator and we can usually resolve the issue immediately. Delays in filing notices of lien can jeopardize the interest of the government and delays in filing releases of lien can harm taxpayers. To minimize delays, we would appreciate the opportunity to correct the error without your having to return the documents.

If you have any questions or comments about our operation, please contact us. Thank you for your consideration and assistance.

Sincerely,

[Name]
Operations Manager
Centralized Lien Operation

Enclosure


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