5.19.12  Centralized Case Processing - Liens

5.19.12.1  (01-01-2010)
Centralized Case Processing Liens Overview

  1. The Centralized Case Processing Lien Operation (CLU) uses the Automated Lien System (ALS) for preparing lien documents and retrieving inventory listings. Case Processing is responsible for maintenance of the ALS on an inventory level. The operation is also responsible for answering lien related taxpayer requests.

  2. Major duties of CLU are:

    • Processing ALS generated documents.

    • Researching taxpayer accounts.

    • Processing requests for manual liens, releases, and withdrawals.

    • Responding to calls and correspondence from taxpayers, practitioners and other third parties.

    • Assisting IRS employees regarding non technical ALS related lien issues.

    • Communicating verbally and in writing with taxpayers, taxpayers designees, recording officials, and IRS employees.

    • Certifying payment of recording fees.

    • Reconciling systemic issues identified by ALS error listings.

    • Issuing ALS passwords and maintenance of ALS information tables.

  3. CLU will assist taxpayers and work cases requiring research and input of accurate information onto the taxpayer accounts using primarily three computer systems, Integrated Data Retrieval System (IDRS), Automated Lien System (ALS) and Automated Non Master File (ANMF). Other systems, such as Integrated Collection System (ICS), Accurint, Netronline, and secure E-mail may be used.

5.19.12.1.1  (01-01-2010)
Requirements for NFTL

  1. The format and content of lien documents are governed by the Internal Revenue Service. ALS is the system used to maintain lien documents

  2. IRC § 6320 requires the IRS to provide taxpayers with notification when a Notice of Federal Tax Lien (NFTL) is filed. The notice provides the taxpayer with information regarding their right to a hearing, the tax periods on the lien, and the amount of the assessed balance. This notice is known as a Collection Due Process notice (CDP). The CDP gives the taxpayer notification 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 the name of the originator of the lien.

  3. In order to comply with IRC § 6320 the taxpayer is provided a copy of the lien. The following documents are sent by certified mail:

    • Letter 3172(CDP), Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320.

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

    • Publication 594, The 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 Hearing.

  4. ALS generates CDP notices the day after the lien is printed. The CDP notice is sent to the Centralized Print Site (CPS) for printing and mailing. The ALS calculates the taxpayers 30 day response due date.

    Note:

    The taxpayers 30 day period for requesting a hearing begins the day following the 5 business day period after the filing of the NFTL. The taxpayers response due date is computed by adding the 5 business day period for preparation and mailing of the CDP notice with the 30 calendar days allotted for the taxpayers response.

    Example:

    A NFTL is filed June 1, 2006. The CDP notice must be mailed by June 8, 2006. The taxpayers response due date is July 8, 2006.

  5. Liens that are created in recording offices where the process is completed electronically must be approved prior to the input of the Power of Attorney (POA) or co-obligor. This approval must only be done on Tuesday and Thursday.

  6. The notice to the POA is Letter 3262, POA Lien Notification. This letter is sent non certified by CPS.

  7. There are five other letters that notify the taxpayer of a lien filing. These notices do not provide appeal rights and are not sent by certified mail. These letters are:

    • Letter 3171, Notice of Additional Federal Tax Lien Filing. This letter is generated by ALS and must be mailed by the CLU. See IRM 5.19.12.6.3.

    • Letter 3271, Power of Attorney (POA) Notification of Additional Lien. This letter is generated by ALS and must be mailed by the CLU. See IRM 5.19.12.6.3.

    • Letter 3177, Notice notifying of Federal Tax Lien Filing- Nominee or Alter Ego. ALS does not prepare this notice. The originator must manually send a notice to recipients identified as the nominee or alter ego .

    • Letter 3886, Notice to Taxpayer of Nominee/Alter Ego of Federal Tax Lien Filing. ALS does not prepare this notice, which is issued to the taxpayer in nominee situations if the taxpayer previously did not receive previous appeal rights notification (L3172).

    • Letter 3527, NFTL Filing – Child Support Obligations. ALS does not prepare this notice. The originator must notice the recipients manually.

5.19.12.2  (01-01-2010)
Lien Documents

  1. The decision to file a Notice of Federal Tax Lien (NFTL) is made by:

    • Revenue Officers

    • ACS Customer Service Representatives

    • Offer Specialists

    • Advisors

    • Insolvency Specialists

    • Some tax examiners

  2. These filing requests are received by ALS through the following methods:

    • Systemically through ICS

    • Downloading from ACS tapes

    • Manual input directly on ALS

  3. The Automated Lien System (ALS) allows the creation of a number of lien documents:

    • Form 668Y Notice of Federal Tax Lien.

    • Form 668Z Certificate of Release of NFTL. ALS will also produce a partial release of lien.

    • Form 12474 Revocation of Certificate of Release. ALS will also produce a partial revocation of release.

    • Form 12474A Revocation of Self-Releasing Lien. ALS will also produce a partial revocation of a self-released lien.

    • Form 10916(c) Withdrawal of Notice of Federal Tax Lien. ALS will also produce a partial withdrawal of lien.

  4. Certain guidelines must be followed when preparing a lien on ALS. Review the request and reject any request with items that do not follow the guidelines in IRM 5.19.12.2.1 . Explain why the request is being rejected.

5.19.12.2.1  (01-01-2010)
Form 668Y, Notice of Federal Tax Lien

  1. There are three sections of the lien form that must be completed when creating a lien. When a request is made to create a lien, review for the information shown in the table below:

    Lien Section Information to be Listed within the Section
    Entity
    • Taxpayer's name and address, the name of the general partner when applicable.

    • Entity type Example: Individual, Sole Proprietor, Corporation, Partnership.

    • Business Operation Division (BOD) Example: SBSE, W&I.

    • Taxpayer Identification Number (TIN).

    Tax Module
    • MFT or Type of return or Civil Penalty Code

    • Assessment dates.

    • Dollar amounts.

    Administrative
    • Requestor’s name.

    • Requestor's assignment number.

    • Recording office in which the lien is to be filed.

      Note:

      ALS will default to the recording office assigned to the zip code of the taxpayer's address. Use this recording office if no recording office is given on the request.

  2. The Create screen is used to create and generate NFTL on ALS. The screen is divided into the same input segments as listed above for the requests.

  3. While completing the entity section you will first enter the TIN. ALS will check the Delinquent Inventory/Account Listing (DIAL):

    • If the TIN is found, the DIAL entity information is displayed

    • If the TIN is not found on the DIAL, ALS matches against other liens on ALS and if any are located the entity will be displayed.

      Note:

      There is a possibility there could be multiple entities displayed, select the correct one or input the entity.

    • If the TIN is not found the user will receive a message. " TIN Not Found, Input New Entity"

    Note:

    Ensure the correct entity is used. ALWAYS check the name control that is systemically generated to ensure it is appropriate.

  4. Verify the name control on ALS is correct, update as necessary. This action will prevent the lien filing indicator from going unpostable.

  5. If DIAL located the entity and brought up the information it will also bring up the tax periods for which no lien has been filed. Refer to Document 7329, ALS User Guide, for directions on input of periods.

  6. Occasionally the court will not generate. If this happens, check the zip code on IDRS to ensure the zip code was listed on the request correctly.

    • If the address on the request matches the address on IDRS but the zip code is different, use the IDRS zip code.

    • If the address on the request matches the address on IDRS and the zip code is the same, research http://zip4.usps.com/zip4/welcome.jsp . This is the U. S. Postal Service web site.

    • Once the research is completed and the correct recording office identified, ensure the court is not under a disaster area freeze or is not a paper court that is within ALS and no longer used because the court now is filed through the ELF procedure. These courts were established prior to electronic filing. See IRM 5.19.12.11.1. on Disaster Protocol and See IRM 5.19.12.12. on ELF liens . Forward the zip code and the correct recording office to the ALS coordinators to update the Zip Code table in ALS for future use.

  7. After all periods have been entered, review all lien information for accuracy.

  8. Enter the requestors information. If the requestor is:

    • ACS.

    • Accounts Management.

    • Or the Taxpayer Advocate's office through Accounts Management.

    See IRM 5.19.12.2.1.2. for the assignment number chart.

  9. All other requestors should supply their employee assignment number in their request. Liens cannot be created without an employee assignment number. The employee must be established on ALS.

    Note:

    DO NOT USE THE ACS ASSIGNMENT NUMBERS FOR ANY EMPLOYEE NOT FROM THE LIST See IRM 5.19.12.2.1.2..

  10. Request the lien be filed in another location when requested.

  11. Input the information regarding the POA when applicable. Electronically filed liens must be approved before the POA information can be entered.

  12. Fees charged by recording offices are assessed against the taxpayer as a TC 360. Included in the fee assessed are both the charges for filing and releasing of the lien. This upload from ALS to IDRS is done on Friday morning and covers the liens that were on vouchers from the prior Friday through Thursday. The fees assessed are based on the ALS fee tables, but are updated if the amount is edited on the voucher. This fee will be assessed against the oldest assessment from the modules on the lien.

  13. ALS will also send a lien filing indicator "TC 582" for all periods on the lien. See IRM 5.19.12.8.1. TC 360 Rejects and See IRM 5.19.12.9. GUF Unpostables for information regarding correction of unposted TC 360 and TC 582

  14. When a lien is suppressed from the voucher and from printing it is considered a manual filing and the prep date will be treated as a print date and the fees will be assessed as though it was on a voucher. The fees will be based on the court fee table.

  15. Creation of liens on ALS must be completed within 5 business days of receipt of the request.

  16. Time spent creating liens is reported under OFP code 810-69080.

5.19.12.2.1.1  (12-16-2008)
Power of Attorney (POA) /Co-Obligor

  1. It is the responsibility of the requestor of a lien to ensure they notify the CLU of all Powers of Attorney and Co-Obligors that are to be noticed.

  2. Upon receipt of the POA/Co-Obligor information ALS must be updated using the literal command NOTADD. Refer to Document 7329, on steps to complete this process.

  3. When the POA information is for a co-obligor it is important to load the co-obligor before loading the POA. When the POA is input highlight the appropriate co-obligors name on the NOTADD screen. The POA will receive a copy of the Letter 3172 for their specific client.

5.19.12.2.1.2  (12-16-2008)
ALS Assigned Numbers

  1. ALS employee assignment numbers are known by different names by the various operations. The Collection field groups use TSIGN as a number that is used on ICS and ALS. This number is employee specific. ACS does not use a TSIGN or an employee specific assignment number. ACS ALS assignment numbers are:

    BOD Assignment number
    SB/SE The first two digits of the number will be the same as the area location followed by 000008. Example: 21000008 is the ACS site for SBSE area 1. The first two digits will always default to the area the input person is logged into on ALS.
    W&I The first two digits of the number will be the same as the area location followed by 000000. Example: 11000000 is W&I area 1. The first two digits will always default to the area the input person is logged into on ALS.

5.19.12.2.1.3  (12-16-2008)
Loading of Previously Recorded Liens to ALS (SCREATE)

  1. Taxpayers may call in to request a lien release for a lien that is not on ALS. This may have happened because a lien was deleted from the ALS system or the lien was hand carried to the recording office after being manually prepared and not loaded to ALS.

    Note:

    DO NOT USE THE CREATE SCREEN. When the court recording data is prior to the creation of the lien, the lien must be created using SCREATE. Create screen method does not allow the input of recording information that is dated prior to the creation of the lien.

  2. The lien must be loaded to ALS in order to release the lien. If a request for release of lien or a request for payoff of a lien is received and there is no record of a lien on ALS, the person making the request will need to supply a copy of the recorded lien in order to create the lien on ALS. This is to ensure the lien is a federal tax lien, and to give the recording information needed to take further action on the lien. When creating the lien on ALS, all information must be exactly the same as the original.

  3. To create the lien on ALS using the SCREATE literal command, input the SLID number from the copy supplied with the request to create the lien.

  4. When liens are filed with no SLID (hand typed liens that were hand carried to the recording office and no SLID was secured prior to the recordation), a SLID will need to be created (made up). Input the created SLID. If the SLID is already in use, ALS will not allow the creation of the lien, and another SLID will need to be created and entered. Continue until the lien is created. Input a history explaining why the lien was created and that the SLID was created. Refer to Document 7329,ALS User Guide, for direction on how to load the lien.

  5. Immediately after creating the lien input the recording information to the court screen.

    Note:

    Do not use SCREATE screen to input recording info, use "court" to input the data. Corrections to CRD can only be made if the initial input of the CRD was done through " court" .

  6. Charge time for resolving lien and request creation requests to OFP 810-69080.

5.19.12.2.2  (01-01-2010)
Lien Input Requirements

  1. Certain input requirements for entity, MFT, and tax period data must be followed when creating the lien on ALS. The following are the most common requirements. This list is not all inclusive.

  2. DO NOT CREATE LIENS WITH:

    • master file and non master file periods on the same lien.

    • Civil Penalty modules using a joint name line.

    • MFT 31 modules using a joint name line.

    • Both IMF and BMF modules on the same lien.

    • MFT 59 modules and other MFT types on the same lien.

    • An incorrect name control. See Document 7071 IMF Name Control Job Aid and Document 7071-A BMF Name Control Job Aid for help in determining the correct name control.

    • An input response such as "duplicate lien" or"lien already filed" , review the lien information to ensure accuracy.

    • Joint names split between two lines. Both names must appear on the first name line. Use "and" or "& " between the names. This ensures both parties receive a CDP notice.

    • A zip code located in a designated disaster area, when a -O freeze has been placed on the IDRS account. See IRM 5.19.12.2.1 . for details on screen input.

    • The abbreviation of CIVPEN for civil penalty assessments. Use the IRC Code number as the tax type (MFT) on ALS.

    • The lien modules are for a joint assessment with one taxpayer’s name on the first name line and the second taxpayer’s name on the second name line. Since both taxpayers are liable, both names must appear on the first name line. This ensures both parties receive a CDP notice.

    • Anything other than "MFT31" as the tax type (MFT) when inputting liens on MFT31 modules.

  3. When unable to create the lien, reject the request back to the originator, with an explanation of why the lien could not be created.

5.19.12.2.3  (01-01-2010)
Amended Lien

  1. Information on a lien can be corrected on ALS until it is printed from the ALS print spool (Tuesday and Thursday). If a correction can be made prior, there is no need to amend the lien. Review the ALS print spool for the SLID number of the lien to be amended. Refer to Document 7329, ALS User Guide, on how to make these corrections.

  2. After a lien has been printed from the ALS spool, the system will only allow a change to the name control. If the name control is the only correction that needs to be made, no amended lien is required.

  3. For liens that were created in an electronic court, the approval of the ELF approval queue is equivalent to printing and mailing other documents. Once the approval is done the status of the lien changes from " new" to "approved elf" the lien cannot be changed. Corrections prior to the approval can be achieved by disapproving the lien and correctly inputting the lien. Changes to an approved lien require preparation of an amended lien.

  4. You may receive requests for either corrected or amended liens, the terms are used interchangeably by the requestor. Determine if the lien has been printed, this will determine if the lien can be corrected or amended.

  5. In order to amend a lien, recording information is needed on the original lien. If no recording information was input to ALS:

    • Use the best research method available to locate the recording information.

    • If unable to locate the recording info, notify the originator that no recording information could be found and ask for direction.

  6. For step by step instruction on how to complete the request for amended lien on ALS refer to the ALS features file for ALS version 8.3.

  7. Amended lien documents will remain in paper format for all electronic courts in MN and for the LA County electronic court. The amend program will generate a print file for amended documents to be sent to these courts. The Court program will allow the input of recording information on these amendment SLIDs. Once CRD is input to the amended lien the lien will be converted to an electronic lien and the release will be electronic.

  8. For the courts of USDC Boston and Secretary of State Connecticut, no paper lien needs to be sent. Complete the amended lien on ALS and the document will show up as an amended lien on ALS for viewing.

  9. Amended liens for Secretary of State California will be completed in the same manner as non electronically filed amended liens.

  10. The ALS Amend program will issue a new CDP Notice based on the reason for amending. The CDP Notice will generate when the amended document is printed. A CDP Notice will not generate for changes to the MFT, TIN or name control.

  11. Amended liens are to be completed within 5 days of receipt by CLU.

  12. OFP 810-69080 is charged for completing the amended liens.

5.19.12.2.4  (01-01-2010)
Not to Be Filed Lien

  1. The information sharing between IDRS and ALS relies on the correct TIN, MFT, tax period and name control. In order for IDRS to pass information such as updated CSED or satisfaction of a tax module to ALS, a lien must be created with the matching information from the original lien but with the corrected TIN and/or MFT. Any other errors must be amended to correct the lien.

  2. To assist in having IDRS notified of a lien filing and subsequently ALS notified of a satisfied account module, a Not to be filed liens (NTBFL) is loaded to ALS.

  3. NTBFL, also referred to as dummy liens, are created when the TIN, MFT and/or tax period were incorrect on a recorded lien. This type of lien is only input by the lien unit.

  4. NTBF liens must be created with the matching information from the original lien but with the corrected TIN MFT and/or module.

  5. NEVER mail NTBFLs to recording offices . These liens are for internal use only. The history should be reviewed to determine appropriate steps when a NTBFL is printed.

  6. To create a NTBFL follow lien creation procedures in Document 7329,ALS User Guide, and the following guidance :

    • Suppress the lien from the billing support voucher.

    • Select not to be filed as the recording office.

    • Input a history explaining the reason for the NTBFL and the SLID number of the lien you are addressing. Remember: when the release occurs this history needs to supply the assistor with enough information to release the appropriate lien.

  7. As the modules on the lien are satisfied IDRS will notify ALS. Each module on the NTBFL lien will be updated as satisfied. The modules are placed on the SATMOD report so that the module on the original lien can be marked as satisfied. This is to ensure no delays in release of the recorded lien.

  8. After all the modules on the lien have been satisfied the lien will systemically release. A release will be placed into the print spool.

    Note:

    Not to be filed liens or release of NTBFLs are not to be filed with any recording office. They are used to inform of an action to be taken.

  9. The employee reviewing the lien documents will pull the release of a NTBFL and use the ALS history information to release the original lien.

  10. When the all modules on the original lien are satisfied, a release will generate and print for both the NTBFL and the original lien. The release of the NTBFL can be discarded after use.

  11. OFP 810-69080 is charged for completing the creation of NTBFL.

5.19.12.2.5  (12-16-2008)
Estate Tax Liens

  1. The lien unit will receive manually prepared (Form 668H and Form 668J) estate tax liens and releases from the Advisory operation. These documents will be received by mail transmitted with a Form 3210.

  2. In the event a call is received from an advisor on where to send the estate tax lien/release direct them to SERP "who where" tab which will give them the address to CLU. The serp link is http://serp.enterprise.irs.gov/databases/who-where.dr/als.dr/case-processing-lien-units.htm .

  3. The CLU FORT will manage all estate tax lien and related documents. See IRM 5.19.12.10.2

5.19.12.2.6  (01-01-2010)
Other Types of Liens and Related Documents

  1. The lien unit will receive manually prepared documents from the Advisory and LMSB International. The documents include:

    • Certificate of Non Attachment

    • Nominee Lien where specific property descriptions are typed on the face of the lien

    • Mutual Collections Assistance Requests (MCAR)

    Some of these documents are not loaded to ALS, but will be filed with documents that are created on ALS.

  2. The lien documents will be placed in the normal batch processing.

  3. Certificates of Non Attachment (CNA)are not liens. They are certificates created when a third party contacts the IRS for documentation that explains they are not the taxpayer on the lien, but that they have a similar name. The CNA can be filed with the recording office following the same procedures as filing a lien that is not on ALS. The CNA must be added to the voucher and the fees need to be computed.

  4. Nominee liens are manually prepared by the revenue officer or Advisory and forwarded to CLU for recordation. Load the nominee lien into ALS using CREATE. Refer to Document 7329, for direction. REMEMBER: The entity type will be nominee. Do not have the lien placed on the BSV. It should be stored only. The manually prepared lien will have a property description. Input a history to give an overview of the property description. Place the SLID number of the ALS created lien on the manually prepared nominee lien and place in the normal batch processing .

    Note:

    If the nominee lien cannot be created on ALS using one lien because of excessive periods, contact the Revenue Officer and explain that the lien cannot be loaded to ALS to mirror the nominee and advise that multiple nominee liens would be necessary.

  5. MCAR liens are created because certain tax treaties contain clauses under which our treaty partners can request assistance from the Service in collecting taxes owed them by individuals residing in the United States. The mutual collection treaty partners are:

    • France

    • Sweden

    • Denmark

    • Canada

    • the Netherlands

  6. MCAR liens will not look like NFTLs. The lien should come with a request explaining the lien is to be filed and who needs to receive the recorded document back. The lien documents will be placed in the normal batch processing.

  7. When these documents are returned from the recording office, forward them to the requestor.

5.19.12.2.7  (01-01-2010)
Refiling a Notice of Federal Tax Lien

  1. Prior to the lien expiration, you may receive a request to refile a NFTL. This is done when the CSED has been extended and the lien is within 1 year and 30 days of expiring. The request will need to specify what lien periods the requestor wants refiled, the new CSED, and if the dollar amount of the assessment is the same as the lien or if there is a change.

  2. Refer to Document 7329, to input the refile. Refiled liens are addressed by module because the expiration date may be different for each module. Example: A lien was filed with 4 modules , the first module will expire in 6 months, the second module will expire in 2 years, the third will expire in 4 years, and the fourth will expire in 6 years. A refile can be done on the first module, but the other modules are not within the 1 year time frame for refiling.

  3. The refile is processed the same as any lien, no special processing is required once the lien is created on ALS.

    Note:

    Ensure enough time is left on the refile time frame for the new lien document to be processed. Many times the refiled lien reaches the recording office after the deadline and is rejected by the recording office. Advise the requestor that not enough time is available to ensure recording when applicable. The requestor would need to revoke the release of lien and then file a new lien.

5.19.12.2.8  (12-16-2008)
Lien Release

  1. Liens are released when all modules are satisfied. They can be satisfied by various methods, Including:

    • Full pay.

    • Accepted offer in compromise.

    • Abatement of tax, penalty or interest.

    • Statute expiration

  2. The majority of lien release generation is done systemically. When a tax module with a lien filed indicator (TC 582) on IDRS is satisfied and the account goes into status 12, a satisfied module indicator is sent systemically to ALS. This process is done through the program ModSat. The screen on ALS will identify satisfied periods with a 528 in the status column of the lien. Each weekend, the ALS system runs a program called Relscan, which looks for liens that have all modules satisfied and generates a release for the lien. If all modules on the lien are not satisfied, the lien will not release.

5.19.12.2.8.1  (12-16-2008)
Manual Release of Liens

  1. There are times when releases of lien are completed on ALS manually. When the request for release is made by the taxpayer or a third party take the following steps:

    • Research ALS to determine if the lien has been released.

    • If the lien has not been released research IDRS to verify how and when the lien modules were satisfied. If the periods are satisfied release the lien. If they are not, give the taxpayer a payoff amount to satisfy the lien.

  2. The chart below explains the date to use when satisfying a module or releasing a lien.

    Module satisfied by Date equals TC Code Date equals
    Bankruptcy Discharge Date TC 521
    Pending discharge from bankruptcy (request by IRS employee prior to discharge posting) Date given by requestor No TC date, date given by requestor
    OIC Date account compromised TC 788
    Pending OIC from MOIC/COIC (request by IRS employee prior to acceptance closure posting) Date given by requestor No TC date, date given by requestor
    Credit transfer Date of original credit moved TC 670 or credit transaction code
    Payment credit TC 670 or credit transaction code
    Adjustment Adjustment transaction date TC will vary. ex: TC 291 or 301
    Pending adjustment (request by IRS employee prior to adjustment posting) Date given by requestor No TC date, date given by requestor
    CSED expiration CSED Expired TC 608
    Status 12 tolerance account Date the account went status 12 Status 12 date
    Credit Offset Date overpayment for another module was moved TC 706 date

    Note:

    See Law Enforcement Manual V, section 5.12.3 relating to tolerance balances due.

  3. When liens are released on ALS, document in the ALS history why the release is being generated.

  4. When the request for release is from an IRS employee, research is only done on ALS to ensure all liens to be released are addressed. The history on ALS should include enough information to identify the requestor.

  5. For direction on how to complete the request on ALS, refer to Document 7329.

  6. OFP 810-69080 is used for completing the release of liens.

  7. DO NOT USE ACS TSIGNS TO RELEASE LIENS. The originator must provide a TSIGN.

5.19.12.2.8.2  (12-16-2008)
Reversing a Release of Lien

  1. If the release has been input but the release has not yet been printed, and it is determined the lien should not be released, a user with the appropriate permissions can reverse the release of a lien. This is usually a manager. Refer to Document 7329-A for direction.

    Note:

    Ensure that when a release of lien is reversed, the individual modules are addressed. If all of the modules show satisfied in one way or another, the lien will release again when Relscan is run.

  2. Once a lien release is recorded or expired, the only way to reverse the release would be to file a revocation at the appropriate recording office. If the revocation request is for a recorded release of lien, the requestor of the revocation must supply the recording date of the release to complete the revocation. Release recording information is not kept on ALS.

  3. When the request for a new lien is included with the request for the revocation it is imperative that these actions be completed in the proper sequence. The revocation must be prepared and recorded with the recording office PRIOR to the NEW lien being filed. Ensure that the recording office is made aware that the revocation needs to be recorded prior to the recording of the new lien. A note to the recorder giving this direction should also include the SLID number of both the revocation and the new lien.

    Note:

    The taxpayer must receive the CDP notice on the new lien if a CDP notice has not been previously sent with respect to the periods on the original NFTL.

  4. If the release that is being revoked was based on a self-released lien, no release recording information is necessary. The recording information for the document is the original lien recording information.

  5. OFP 810-69080 is charged for completing the reversal or revocation of release of liens.

5.19.12.2.8.3  (01-01-2010)
Partial Lien Releases

  1. There are times when it will be necessary to release the lien against one of the taxpayers listed on the lien. This happens on a joint entity when one spouse has been granted a discharge in a bankruptcy, has an accepted offer in compromise, or has been granted innocent spouse relief. When this happens a partial release of lien is prepared on ALS to release the lien against the no longer liable spouse.

  2. Most of these requests are generated systemically, including those in ELF courts; but requests from IRS employees may also be received.

  3. In order for ALS to generate a partial release, the system establishes an ALS-only document identified as a "spec doc" in the status column on ALS. From this spec doc the partial release is prepared for the no longer liable spouse.

  4. When manually completing the partial release, follow the same procedures for a manual release requests from an IRS employee. See IRM 5.19.12.2.8.1.and follow the direction given in Document 7329.

    Note:

    In certain instances, the liability under the joint entity may show satisfied, but the liability was split to separate liabilities under MFT 31. Ensure no liability exists under either MFT 30 or MFT 31 before processing the release request.

  5. A taxpayer may also request a release on a specific module on a lien. If the tax module is satisfied, a partial release can be generated for the specific period. For individual periods that have expired or self-released, follow self released lien procedures. See IRM 5.19.12.2.8.4.

  6. The TP copy of the partial releases for paper courts are systemically generated. Partial releases for ELF courts are printed and mailed by CLU and can be found in SPOOL/ELF.mmdd.

  7. Partial releases when IDRS shows a TC 971-102 Exam Tax Court or TC971-103 Appeals Tax Court require additional research. See IRM 5.19.12.13.6.

  8. OFP 810-69080 is charged for completing the partial release of liens.

5.19.12.2.8.4  (01-01-2010)
Self-Releasing Liens

  1. Self releasing liens are liens that do not have a release document issued systemically. These are liens in which the statutory period for refiling for each module on the lien has expired and no refile was filed. The modules on the lien may or may not have been satisfied by methods listed in IRM 5.19.12.2.7.1(2).

  2. All modules on a lien have a Collection Expiration Date (CSED). This date is reflected on the lien in Column E, "Last Day for Refiling " which is 30 days after the original CSED for the module. If after the lien is filed, actions on the taxpayer's account extend the CSED beyond this date, the lien must be refiled to continue the effect of the lien. If the lien is not refiled by the date in Column E, the lien will self-release. Example: The taxpayer files bankruptcy and the bankruptcy is later dismissed. The CSED is extended and updated on IDRS, but the lien will still expire unless refiled. Since each module has it's own refile date, the status of the lien must consider each module.

  3. When the request for lien release is for liens that have self-released, review IDRS to ensure the CSED has not been extended and to determine if there is still a balance due on the module(s).

  4. If the CSED has been extended and there is still a balance due, determine the status of the account and take the appropriate referral action. If the account status is:

    • Status 26 - Refer to RO or RO group.

    • Status 22 - Refer to ACS.

    • Status 72 - 520 cc 60–67 and 81 Refer to Insolvency.

    • Status 72 - 520 cc 73, 75 or 80 Refer to the assigned Advisory unit.

    • Prepare a 3645CS letter to explain that their request is being referred. Refer to IRM 2.4.6 on creating a correspondex letter.

    See IRM 5.19.12.7.6.2.for additional information on referrals.

  5. For all other self-released liens with no balance due, advise the taxpayer the lien serves as a release. If after going over the self releasing lien statement on the document with the taxpayer, the taxpayer still wants to have a certificate of release of lien, explain to the taxpayer that you will provide a release of lien that they will need to file at the recording office. Explain that some recording offices do not accept the release of lien because they recognize the lien as being self-released.

    Note:

    Advise the taxpayer they should give a copy of the lien with the self-released language to the credit reporting agency or any office that is questioning the lien.

  6. Generate the release by the literal command "prnt 668 " and select 668Z for the document this will produce the information from the lien on a release. Update the release document with the current date. Send the release document and the Notice 48, Release of Federal Tax Lien, to the taxpayer. Update ALS with a history stating "TP requested release of self-released lien. "prnt 668 " and Notice 48 was sent to TP " .

    Note:

    Sending a notice of release to the county can cause the entire batch of documents to be rejected. Many counties consider the self-released lien and will reject as previously released. Contact with the county needs to be done prior to sending a notice of release on a self-released lien.

  7. For liens filed in ELF courts the lien will need to be released on ALS, so that a electronic release will be sent. There is no way to send the taxpayer a document for recording.

  8. OFP 810-69080 is charged for completing the release of liens.

5.19.12.2.9  (01-01-2010)
Lien Withdrawal

  1. In certain situations the IRS may withdraw a Notice of Federal Tax Lien. Only Advisory and Insolvency Managers can approve the withdrawal of a NFTL.

  2. Advisory or Insolvency sends approved withdrawal requests to CLU for processing actions.

  3. Check ALS for recording information and take the following steps:

    If Then
    No recording information on ALS
    • Advise the request originator that no recording information is on ALS and research must be conducted. If the requestor wishes to conduct the research, explain that they need to return the recording information.

    • Use the best research tool available for locating the recording information.

    Recording information is on ALS
    • Input the withdrawal on ALS. Refer to Document 7329, for direction.

    • Advise the requestor the withdrawal has been completed.

  4. The team manager will approve the withdrawal in ALS.

  5. Reverse the TC 360 lien filing fee on IDRS.

  6. Lien withdrawals must be completed within 5 business days of receipt.

  7. After the lien withdrawal is printed for recordation, the withdrawal is to be scanned and sent via secure E-mail to the requestor.

  8. When the court has electronic filing (ELF), print the facsimile after creating the withdrawal and scan the document for sending to the requestor by secure E-mail. For a listing of ELF courts, See IRM 5.19.12.12.

  9. OFP 810-69080 is charged for completing the withdrawal of liens.

5.19.12.2.9.1  (01-01-2010)
Partial Withdrawals

  1. Advisory or Insolvency will send the approved partial withdrawal requests to CLU for processing actions. See IRM 5.19.12.2.9.

  2. Partial lien withdrawals must be completed within 5 business days of receipt

  3. After the lien withdrawal is printed for recordation, the withdrawal will be scanned and sent via secure E-mail to the requestor.

  4. When the court has ELF filing, print the facsimile after creating the withdrawal and scan the document for sending to the requestor by secure E-mail. For a listing of ELF courts, See IRM 5.19.12.12.

  5. Do not reverse the TC 360.

  6. OFP 810-69080 is charged for completing the partial withdrawal of liens

5.19.12.2.9.2  (12-16-2008)
Mis Directed Withdrawal Requests

  1. In the event a request for a withdrawal is received from a taxpayer , check IDRS to determine the status of the account. If:

    • Status 72, refer to Insolvency.

    • Status 26, refer to the Revenue Officer assigned.

    • Any other status, refer to Advisory.

    Prepare a 3645CS letter to explain that the request is being referred. Refer to IRM 2.4.6 for creating a correspondex letter.

  2. If the request is received from field personnel, reject the request back to the originator and explain that the request must come through Advisory or Insolvency.

5.19.12.3  (01-01-2010)
Document Printing

  1. Lien documents including liens, releases, withdrawals and revocations are printed on Tuesdays and Thursdays only. Printing of the lien starts the clock on the 5 day requirement to issue the CDP Notice.

  2. Liens erroneously printed on days other than Tuesdays and Thursdays will cause a delay in the issuance of the CDP, causing the 5 day time frame not to be met.

  3. Printing and mailing of the lien documents starts the day after the 668Y and Z listings are completed and the voucher reviewed for additions and subtractions. All printing and mailing must be completed within 3 days.

  4. All documents are to be printed on day one, Tuesday or Thursday. This would also be the day all ELF liens are approved.

  5. Day two is available to finish packaging lien documents going to the "billing" courts and complete the mailing. this would also be the day all ELF court liens are to be sent for recording.

    Note:

    Ensure that all courts within the same voucher are mailed at the same time. This has impact to the date input to the voucher program.

    For "convenience check " courts day two would be for delivery of documents to the check writers.

  6. Day three is available for checks to be completed and all documents to be mailed.

    Note:

    Ensure that all courts within the same voucher are mailed at the same time. This has impact to the date input to the voucher program.

  7. If the documents for each state can be completed prior to 2 days for billing and 3 days for convenience check they can be mailed.

  8. The TC 582, TC 583 and TC 360 posting are directly related to the document creation and printing process. ALS reviews lien documents that were created and printed during the week prior to the TC delivery. ALS is set to look for liens that were created from the prior Friday through Thursday that were also printed the on Tuesday or Thursday. If liens are printed after the cutoff no delivery will be sent to masterfile.

  9. Example: A lien was created on July 7, 2009, the lien would be printed during the July 9, 2009 processing and the TCs would be delivered to masterfile July 10, 2009. If the same lien was not printed and processed until July 14, 2009, no TC would be sent because the cutoff time had passed.

  10. If documents are not printed timely, the applicable transaction codes will not generate to IDRS.

  11. Use OFP 790-69010 to report time spent reviewing and editing the BSV and working the 668Y and 668Z listings.

    Note:

    Managerial approval of the ELF liens is equivalent to printing of the liens and will trigger the CDP generation. The managerial approval must be done on Tuesday and Thursday to ensure CDP notices are timely printed and mailed. The upload of the ELF files from ALS should only be done on Wednesday and Friday.

5.19.12.3.1  (12-16-2008)
SPOOL and OLD SPOOL

  1. The print spool contains lien related documents to be printed.

  2. There are two print spools found on ALS. On the ALS print menu they are identified as SPOOL and SPOOL.OLD.

    • SPOOL is the "active" spool or queue and contains lien documents waiting to be printed.

    • SPOOL.OLD is the "back-up" spool or queue and contains lien documents and reports that have already been printed.

  3. Review of the active spool queue should be completed after each printing to ensure all documents are printed that correspond to the range of dates being worked.

  4. ALS reports are located in the Reports file on the print menu.

  5. Once documents are printed, they move from the "spool " queue to the "spool.old" queue. Documents are retrievable from spool.old for 17 days. Refer to Document 7329, for more information.

5.19.12.3.2  (12-16-2008)
Billing Support Voucher

  1. ALS assigns each new voucher a unique number consisting of a voucher number, account number and payment type identifier.

  2. The voucher number is made up of three parts.

    • The account number is the court ID number that is assigned in the ALS Court Table.

    • The voucher number that is generated sequentially and used for all vouchers within the state (unless one specific court is being built).

    • The payment type identifier, which will be "I" for convenience check courts, "B" for billing courts or "E" for ELF courts.

    For example, the BSV number is 330032-10 I; 330032 represents the account number of the court and 10 represents the voucher number. The I represents convenience check type of payment. The number will appear on the generated BSV and can be used to locate the BSV for editing.

  3. When a voucher is generated for states where there are multiple methods of payment, the voucher program will provide a voucher for the convenience check courts within the state, a second voucher for billing courts within the state and if applicable a third for the ELF courts within the state.

  4. A billing support voucher is built for the range of dates of the documents being filed. The range of dates for voucher/documents generated on Tuesday equals Wednesday through Saturday and the range of dates for voucher/documents generated on Thursday equals Sunday through Tuesday.

  5. The voucher that is stored in ALS must exactly reflect the voucher as it was sent to the recorder, including filing fees and documents.

5.19.12.3.3  (01-01-2010)
ALS 668Y and 668Z Listing

  1. The 668Z Listing show documents targeted for placement on a BSV that are missing information such as recording data. The 668Y listing shows documents that are targeted for placement on a BSV but are not in the print queue. Documents are missing from the print queue when "on voucher" "store only" option was selected when the request was input in ALS.

  2. Generate the listings on Monday or Wednesday prior to the printing and mailing of the BSV. Once generated, the reports can be located in each area’s reports print queue. Some listings are run overnight in CRON and are placed in the area’s reports print queue on Monday and Wednesday and do not need to be generated.

  3. Use the information on the listing to research documents that need clarification and determine appropriate action. Listings generated on Monday, must be resolved before printing and mailing on Tuesday; the listings generated on Wednesday must be resolved before printing and mailing on Thursday.

5.19.12.3.3.1  (01-01-2010)
Resolving the 668Y Listing

  1. The 668Y listing identifies accounts that are "Missing " from the print queue. This occurs when the lien was hand carried to the recording office. To resolve, research ALS for history information indicating the lien was hand carried and take appropriate actions.

  2. Input an ALS voucher history if adding the document to the voucher.

5.19.12.3.3.2  (01-01-2010)
Resolving the 668Z Listing

  1. This listing indicates a reason the account was identified for research. This will be identified on the listing in the "HOW " column.

  2. If the reason shown on the listing is "No Recd" , this means there is no recording data on ALS. To resolve, research for recording data using the best method of research for the court.

  3. If recording data is located, input the data and notate the listing with the actions taken; input an ALS history "Z listing worked. "

  4. If recording data cannot be located after using all available research methods, the recording office has been contacted, and it has been 90 days since the lien was filed, remove the SLID from ALS. Notate the listing with the actions taken; input an ALS history "Z listing worked CRD lien never filed, removed lien."

  5. If the reason shown on the listing is "Missing" , research ALS history for information that the release was hand carried to the recording office.

  6. Upon verification that the lien was hand carried, remove the release from the BSV. If unable to determine if the release was hand carried, file the release. Input an ALS voucher history indicating the action taken

5.19.12.3.3.3  (01-01-2010)
BSV Review

  1. BSV's and related documents should not be printed outside of the normal processing on Tuesday and Thursday. The BSV are to be reviewed on ALS before printing to ensure completeness and accuracy.

  2. Prior to printing, review the BSV to identify:

    • The appropriate court was selected when the lien was created. Correct the court and add to the appropriate voucher.

    • Not to be Filed Liens (NTBFL).These liens are for internal use only to alert you of an action to be taken. Take corrective action based on the ALS history. DO NOT FILE A NTBFL OR RELEASE OF A NTBFL

      Note:

      In the event you discover a NTBFL was filed, contact the FORT for direction.

    • Liens on individual taxpayers filed with Secretary of State inappropriately. Remove the lien and notify the originator of the removal and why it was removed.

    • Paper documents generated for ELF courts, unless the document that must be sent by paper, such as an amended lien, change the court to reflect the ELF court and add to voucher for the appropriate court. Ensure the lien is approved in the ELF approval queue. Remove from the paper court voucher as applicable.

    • Property designations such as "Real Property" and "Personal Property" . These designations will no longer appear on the lien document. Liens are no longer filed in " Personal Property" courts and should be removed from ALS. Edit the BSV to remove the document . Notify the originator that liens for this court are no longer an option for filing. Releases for "Personal Property" courts are filed. The release must match the lien as filed including the court.

    • That recording fees are appropriate according to the court's requirements.

  3. Any request to add estate tax liens to a voucher are to be hand carried to the FORT.

  4. Check the team’s "Add/Pull Folder" for Nominee, Alter Ego, and MCAR lien requests.

    Note:

    All actions to update the BSV on line must be taken to reflect changes identified by Y and Z listings actions, add/pull requests and any inappropriate documents addressed, before printing the BSV. Inform your manager when complete resolution of the " Y" and "Z" listings has not been reached and when a release has been removed from the BSV.

  5. Ensure that you refer to the range of dates listed on the BSV and print all documents for each day. Refer to Document 7329 for specific instructions.

5.19.12.3.4  (01-01-2010)
Editing the Voucher

  1. Vouchers can be researched by invoice number and specific court or a by a specific SLID.

  2. Editing can be done to change a standard fee or to add or delete a particular document from the voucher.

  3. History items pertaining to any editing of a particular voucher are stored separately from lien history. This history becomes part of the voucher history.

  4. Review and editing of the voucher to correct fees and add or delete documents are to be done before documents are generated.

  5. When adding a partial release to a voucher use the SLID of the original lien; DO NOT use the SLID of the SPEC DOC.

    Note:

    If you input the SPEC DOC SLID, this will cause the system to jam up during the printing process, and will delay the lien processing.

  6. If there are two partial releases on the same lien, only the last partial release will be produced. When this occurs, manually add the second partial release to the voucher without the input of the SLID number. Input a history to ALS voucher identifying the court and reason for adding.

5.19.12.3.5  (01-01-2010)
Printing and Mailing Documents for Recordation

  1. Documents are ready for sending to the recording office after:

    • The BSV is updated as required.

    • All additions to the batch have been inserted.

    • All documents identified to be removed, have been removed.

    • All documents have been printed, reviewed, and corrective actions taken.

    The batch(s) of documents are now ready to be prepared for shipment to the recording offices.

  2. Sort the batches of liens by the type of payment the recording office receives:

    • Convenience check.

    • Invoice request by the recording office.

  3. For Billing courts:

    • Create a sealed package containing the recorder’s copy of the BSV and the documents for each recording office for which you have documents.

    • Keep all packages for courts with the same voucher number together, all must be mailed the same day.

  4. For convenience check courts:

    • Create an unsealed package containing the recorder's copy of the BSV and the documents for each recording office for which there are documents.

    • Keep all packages for courts with the same voucher number together, all must be mailed the same day.

    • Take the packages to the convenience check team for check writing.

  5. Once packages are completed, ensure all courts with the same voucher number are together and carry the mailing packet with the file copy to Receipt and Control where they will be date stamped and the packets mailed to the recording office.

    Note:

    Ensure the address is correct, the voucher has the address on it, if incorrect, update as necessary and notify the ALS coordinator so that ALS can be updated.

  6. After inputting the mail date on ALS, file the lien team copy of BSV by county. See IRM 5.19.12.

5.19.12.3.5.1  (01-01-2010)
Input of Date Stamp on ALS

  1. Once the documents are mailed to the recorder, a date must be input to the ALS voucher program, to indicate the mail out date. The Receipt and Control date stamp on the paper BSV is the date to be entered.

  2. For electronically filed courts, the file transmission date is the date to be used. See IRM 5.19.12.for information on ELF.

  3. This date must be input the day following the packages being mailed.

  4. All documents with the same voucher number for within the state are to be mailed the same day. For example, voucher number 1111-B for Arizona is for all billing courts and voucher 1112-I is for all Arizona convenience check courts. All 1111-B vouchers must be mailed at the same time and all 1112-I vouchers must be mailed at the same time.

5.19.12.4  (12-16-2008)
Returned Documents from Recording Offices

  1. Recording offices can return documents for a variety of reasons. This section deals with the most common.

5.19.12.4.1  (01-01-2010)
Recorded Documents

  1. The recording office will record the lien documents and return the documents to the CLU.

  2. The recorded liens will have court recording data (CRD). Generally this will be book and page with a date of recordation. This will vary depending on the recording office.

  3. If the document is a foreign tax lien or release, send the recorded foreign tax lien/release to International, using a Form 3210. These types of documents are not loaded to the ALS, therefore no CRD input is necessary.

  4. If lien is an estate tax lien/release, send the document to the FORT for monitoring and next actions. See IRM 5.19.12.2.5. for more information on processing estate tax liens.

  5. For all other types of liens, input recording information into ALS through the court screen. Refer to Document 7329, for direction.

  6. Returned release of foreign tax liens are to be returned to the originator.

  7. Returned release of estate tax liens are to be hand carried to the FORT, which is the control point for this type of lien.

  8. Recording information for liens must be input into ALS within 5 business days of receipt of lien from the recording office.

5.19.12.4.1.1  (01-01-2010)
Court Recording Information

  1. When recorded liens are received back from the recording office the documents should be reviewed to ensure all documents in the batch have recording information.

  2. Also check the batch for the following:

    • Duplicate lien filings (the recorder filed both part 1 and 2 of the lien). See IRM 5.19.12.13.4.

    • NTBFL, which indicates they should not have been filed. See IRM 5.19.12.2.4.

    • Information in the batch to indicate rejected documents. See IRM 5.19.12.4.2.

    • Invoice from the recorder. See IRM 5.19.12.5.1.

    • Checks for overpayment of recording fees included. See IRM 5.19.12.4.2.

    • Information regarding changes in recording fees or general information from the recording office. See IRM 5.19.12.7.5.

  3. The basis of the lien priority of the IRS lien is the filing date and time. The recording office provides this data. The recording office also supplies the location and the filing number. It is crucial to accurately input court data in a timely fashion.

    Note:

    Incorrect data can cause a future release of lien to be rejected by the court. Verify the data being input to the correct SLID and that the data is entered correctly.

  4. Some recording offices only use recording numbers, some use book and page numbers, some use serial numbers, and some use a combination of the above.

  5. The court input data screen on ALS can be set to go directly to the fields that are required by the recorder. This is referred to as the "Court Recording Window Flow. " Once the required fields are identified, forward the information to the ALS Coordinators through your manager, requesting the window flow be set. Provide the name of the recording office and what fields the recorder uses.

  6. The following is a combination list that is available for set up:

    • a = input book, page and then court serial (recording) number

    • b = input only book and page

    • B = input time and then book and page

    • c = input UCC recording info and then court serial (recording) number

    • C = input time and book

    • d = electronic no access

    • D = electronic no access

    • e = input time, UCC, and court serial (recording) number

    • E = input time, book, page and UCC recording info

    • l = input time, book, page and court serial (recording) number

    • L =input time, book, page and court serial (recording) number

    • n = input book and court serial (recording) number

    • N = input book, page and court serial (recording) number

    • s = input only court serial (recording) number

    • S = input time and then court serial (recording) number

    • u = input only UCC recording info

    • U = input time and then UCC recording info

      Note:

      The date is always included in the combination, this is a default setting.

  7. When other combinations not listed above are identified, explain this on the request to the ALS coordinator. The ALS coordinator may be able to coordinate 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 court.

  8. When inputting recording information and it is discovered the lien already has recording information, verify the SLID and the court on the document is the same as the SLID and court on ALS. This may be a duplicate filing. Additional research will need to be conducted. See IRM 5.19.12.13.4., Duplicate Filing of Liens.

  9. Once all of the data is input to ALS, verify that all lien documents were recorded by reviewing the associated voucher using the ALS voucher program. Refer to the ALS 8.6 features file for more information.

  10. If the documents were returned without a BSV attached, find the voucher number by researching one of the liens in the batch on ALS, court screen.

  11. This can be done by accessing the voucher program, when all lien documents have received CRD, the information shows up on the first page of the voucher. In the event you do see that all recording data has been received and entered, but the voucher program does not show all recorded:

    • check the voucher for the lien that does not show up as recorded

    • verify the lien was sent with the voucher

    • check for estate, nominee, MCARS, non-attachments, or any other document that was added with out a slid number.

  12. When a discrepancy is discovered and not all liens were returned, contact the recording office to determine why the recording information was not returned. Annotate your findings on the voucher program.

  13. When inputting a history to the Voucher Program, identify the court impacted by the history. The voucher number is for all courts within the state.

  14. Recording information needs to be input to ALS within 5 days of receipt. Refer to Document 7329, ALS User Guide, for direction on how to input the data to the court screen.

  15. 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  (01-01-2010)
Unrecorded Documents

  1. Recording offices may return documents that are unrecorded for the following reasons:

    • Incorrect fees paid by convenience check - When batches of liens are sent to a recording office that requires payment at the time of filing, without a convenience check or for an amount that is not consistent with the fee schedule for the recording office, they may be returned. Forward the batch of documents to the convenience check cashier team to complete corrective actions on the fees.

    • Convenience check sent to a billing court - A convenience check may be returned by a recording office when the recorder does not accept checks for payment but invoices the IRS for recording fees. When checks are returned keep the envelope and the check and forward to the convenience check cashier team.

    • Overpayment of Fees - recording offices may send a check and at times cash for the amount of overpayment that they received with a batch. Forward these checks to the convenience check cashiers team.

    • Releases with missing recording or incorrect recording information - If no recording information is listed or if recording information is on the document but is incorrect, research must be done immediately. The research should include all available methods including contact with the recording office. If the recording information is correct but in the wrong fields, correct the recording information on ALS and PRNT 668, update the BSV and place a history on the voucher program.

    • Documents were sent to the wrong county - If the recording office identifies that the document is for another court location they may return the document and advise that the document must be sent to another location.

  2. The ALS voucher program will be used for tracking of rejected lien batches and individual documents that are rejected. Refer to your ALS features file for information on how to use this tool in the voucher program.

  3. When the documents are returned , input a history on the voucher on ALS, include the court ID number in the history. If the entire batch was rejected the history should read Voucher rejected (input court ID), incorrect recording fees. If specific documents were rejected the history should read Document (enter slid number(s)) rejected by (input court ID), (enter reason for rejection).

  4. Return the corrected document(s) to the recording office. If only specific documents were returned unrecorded, add to the next voucher that will be going to the court. If no voucher is going out on the next processing day, generate a new voucher for the documents to be sent. When you are able to use the same voucher to resend to the recorder, ensure the file copy of the BSV is date stamped with the current mailing date.

  5. Rejected lien documents are to be tracked from the time of receipt until resolution is made.

  6. Resolution is to be made within 3 business days of receipt to CLU, this corresponds with the number of days to process lien batches. See IRM 5.19.12.3.

5.19.12.5  (12-16-2008)
Recording Fees

  1. Most recording offices charge a fee for recording documents. The amount charged and how they are paid varies. Examples include:

    1. monthly invoice is submitted and the charge is $5.00 per document

    2. quarterly invoice is submitted, and the charge is $3.00 for liens and $1.00 for releases

    3. no invoice is submitted, recording office relies on IRS to submit payment monthly based on BSV's

    4. payment by check is expected at the time of recording

  2. It is very important if notification is received from a recording office on changes to their fee schedule that the changes are given immediately to:

    • the manager of the team responsible for filing with that recording office.

    • the ALS coordinators in order for the court fees to be updated on ALS.

    • the team preparing the batches to that recording office for use when updating the BSV.

5.19.12.5.1  (01-01-2010)
Invoices

  1. One of the payment methods used by some courts is the " direct bill" method. This method is billing in arrears for services provided. Filing locations that utilize the direct bill method will accept and file liens and releases and then submit a periodic bill to the lien unit for reconciliation and subsequent payment by Beckley Finance. Monthly billing is preferred, but the service will accept any scheduled billing (e.g. per filing, weekly, etc.).

  2. In the event no invoice is received within the normal receipt time frame for the court, make contact with the court to prompt receipt of the invoice.

  3. In the event an invoice is not received from a particular court, an invoice must be constructed and certified within 14 calendar days starting the 1st day of the month following filing of lien documents.

    Example: Lexington, KY had 500 lien documents filed during the month of July. They do not submit an invoice for payment, but rely on the IRS to compute the recording fees and make payment. An invoice needs to be constructed and certified by August 14.

  4. Invoices received from the recording office are to be certified and paid within 14 calendar days of receipt. Take the following actions:

    • Date stamp the invoice with the received date by CLU.

    • Review the invoice comparing it with any supporting documentation supplied by the recording office or with the file copies of the BSV's.

    • Review the voucher on ALS to determine what was sent for recordation and what the recording fees were.

    If Then
    The invoice matches the file copies or the BSVs returned by the recording office with the invoice

    Note:

    There are some recording offices that will stamp the BSV indicating they are using the document as an invoice.

    Assemble two sets of the payment package, which should include:
    • Certified statement with signature.

    • Recorder invoice with certified statement or date stamp.

    • BSV Part 2 Filing Jurisdiction summary report that relates to the invoice.
      Send Set 1 of the package to Beckley Finance Center for payment issuance to the recording office using a Form 3210 at: Beckley Finance Center PO Box 9002 Beckley, WV 25802-9002.


      Set 2 of the package is the file copy. The package should be filed by Area, State, Recording Office and Date.

    If the invoice does not match the file copies of the BSVs or the BSVs returned by the recording office with the invoice.
    • Review the voucher program to determine if additional recordings were sent to the court and there is no file copy. Do not run a voucher or a potential lost lien report for this review. Review the voucher online

    • Be sure to check for any rejected lien documents that were returned to the court within the billing time frame.

    • Contact the recording office to clear up the discrepancy and determine the amount owed.

    • Document all steps taken. If an agreement still cannot be reached with the recording office, forward the issue to your manager.

    • If the manager cannot resolve the issue, the case should be forwarded to the FORT.

    • The FORT should work the issue by following the billing issue resolution procedure.

    Note:

    If you find out the filing fees have changed, notify your manager so the ALS coordinator can update the ALS court fee table and the team can be alerted prior to filing again with the recording office.

5.19.12.5.2  (01-01-2010)
Convenience Check Payments

  1. Citibank convenience checks are used to pay for services (filing fees) in locations (counties, parishes, etc.) that require payment at the time services are requested. A convenience check holder must attend training via Centra, with SB/SE Finance providing on-site supplemental training and assistance.

  2. New convenience check holders will receive their checks after full completion of the training/tutorial. Convenience check holders are authorized to use the Quickbooks software program to print checks; the maximum amount per transaction/convenience check is $3000.00.

  3. In the event fees for a particular court exceed $3000.00 management must contact the recorder to establish other means of payment through Treasury.

  4. After the lien documents are received from the printing and review process, the convenience check cashier will receive the recorder’s copy and the lien team copy of the BSVs for convenience check counties to complete the recording process.

    • Verify the convenience check request is for a court that is to receive payment at the time of filing. This can be determined by the "I" for convenience check directly after the invoice number.

    • Write the convenience check for the amount listed on the BSV for recording fees.

    • Write check number on lien team file copy of the BSV.

    • Make a 3rd copy of the BSV and retain for the convenience check file.

    • Create a package containing the convenience check, recorder’s copy of the BSV and documents.

    • Staple or paper clip the check to the voucher.

    • Give the package to the manager or lead for review for review.

    • Once the package is correct, the TE will seal and forward to the clerk.

      Note:

      ALL COURTS WITHIN THE STATE SHARING THE SAME VOUCHER NUMBER MUST BE MAILED AT THE SAME TIME. The voucher program was designed to minimize the amount of data entry to the mailing date field of the voucher program. A voucher is produced for each court within a state using the same billing type on the same voucher number. Each voucher number must be mailed on the same date, no changes are to be made to the date once input.

    • The clerk proceeds with the date stamping of the cover sheet.

  5. The manager will review that the court is a convenience check court, the check is signed, is made out to the correct court, is for the correct amount, and that the check number is listed on lien team copy of the voucher.

  6. Convenience checks are to be written within one business day of receiving the BSVs for the convenience check courts.

  7. Use OFP 810–69110 for all work regarding the convenience check fund.

5.19.12.5.2.1  (01-01-2010)
Monthly Bank Reconciliation

  1. Each convenience check cashier will balance their assigned checkbook monthly. A follow up with the recorder must be completed on convenience checks that have not been processed by Citibank within 60 days from the issue date.

  2. The SB/SE budget analyst receives the monthly bank statements from Citibank. The analyst is to provide the statements to the convenience check holders no later than the 12th calendar day of each month.

  3. The statement will be used by the convenience check holders to reconcile all activity for the billing period (9th of each month through the 8th of the following month). If a check holder has no activity during a billing cycle, no statement will be generated.

  4. Sum totals are required for the check expenses and the check fees on the Excel statement.

  5. Expenses that span fiscal years are to be separated (by total) and charged to the appropriate fiscal year. The fiscal year to be charged is determined by the date that the check is written and mailed.

  6. Convenience check holders will reconcile the Excel statement with their check register. A copy of the check register page(s) that apply to the cleared checks included on the statement must be attached to the statement.

  7. Any disputed charges are to be processed using a dispute form. One dispute form per statement should be used – a convenience check holder may include multiple issues/disputes with one form, attaching a separate sheet, if necessary, to provide all the details. The check holder should fax the dispute form and any attachments to Citibank and attach a copy to the reconciled statement. The check holder must sign the statement and provide it to their Approving Official for review and signature/approval. A copy of the signed statement should be maintained prior to submission.

  8. Beckley requires a list of checks that have been written but not yet cleared. This is used to record an accrual in the Integrated Financial System (IFS). This includes checks that have been written since the statement date and up through the day the check holder prepares and reconciles their current statement. Using Quickbooks software, under "Reconciliation " , select "do a full report" and the listing and dollar amounts will be automatic.

  9. If a check holder has no statement for a specific billing period but has uncleared checks to report, he/she still must prepare and provide the Uncleared Checks monthly listing to the local SB/SE budget analyst.

  10. By no later than the 23rd calendar day of each month provide the SB/SE budget analyst with the following:

    • the check holder’s signed statement

    • copy of the check register page(s)

    • copies of any dispute forms

    • the check holder’s uncleared listing

    • Uncleared Checks – Monthly Listing

  11. The SB/SE budget analyst will review all submissions, resolve any obvious discrepancies, and forward the statement to the Beckley Finance Center by the 26th calendar day of each month.

5.19.12.5.2.2  (12-16-2008)
Voiding a Convenience Check/Returned Check

  1. Examples of reasons to void a check:

    • An issued check is not negotiated and is returned to the Convenience Check Holder.

    • A payee calls and states the check is incorrect – they must return the check for the Lien Unit to void.

    • A check holder makes a mistake in writing the check.

    Note:

    Stamp "Void" on the original check and the duplicate copy

  2. Quickbooks has a "void" process built into the program. Insert the amount of the check in the memo section since Quickbooks will take out the dollar amount in the check register. This will provide a good audit trail.

  3. Original "voided" checks will be sent to SBSE Program Coordinator on the same business day via Form 3210. The SBSE Program Coordinator will maintain an inventory for all voided checks for each cardholder and send that listing to the SBSE Budget Analyst and Centralized Lien Unit Manager before the 8th of the month.

5.19.12.5.2.3  (01-01-2010)
Returned Payments

  1. If the convenience check cardholder determines an overpayment was made, refer to the AWSS Convenience Check handbook.

    • The original Check Holder will stamp the check "void" and follow the "void" procedures. See IRM 5.19.12.5.2.2.

    • If the reason for overpayment is a change in the lien fee, ensure the information is given to the FORT for changes to be made to the ALS fee tables and the lien team that processes liens for the court.

    • Issue a new convenience check for the correct lien fee amount to the payee.

  2. If the check amount is incorrect (insufficient amount) to pay associated lien fees:

    • Returned checks are sent to the original convenience check holder.

    • Original check holder will issue a second convenience check for the additional amount and will send both checks to the payee.

  3. If the original check was sent to the wrong address and needs to be sent to the correct court take the following actions:

    • Obtain the correct address of the County Clerk and confirm the lien fees. If check fee is sufficient, mail to the correct court.

    • Forward the correct address to the Fort Team. This will be used to update the ALS database with the correct address.

    • Ensure the new date stamp is on the voucher prior to mailing, update the voucher program with a history stating "court " (enter court id number) is being mailed (input date), voucher was rejected due to incorrect (enter either the word address or court). See IRM 5.19.12.4.2.

5.19.12.5.2.4  (12-16-2008)
Verification of Check Clearance

  1. Convenience check holders are to call Citibank Customer Service to verify if a check that has not appeared on a statement has cleared.

  2. When calling Citibank Customer Service, the check holder needs to place the call to access their account, a third party cannot do so. If they ask for a Verification Number – that will be the check holder’s service computation date that was included in the original Citibank Set-up Form.

  3. Convenience check holders can also research this information online in Citidirect.

5.19.12.5.2.5  (01-01-2010)
Stop Payments

  1. Convenience check holders will need to document why a stop payment is needed. A recommended source would be written documentation from the payee. At a minimum, a statement prepared by the check holder should be included in the file.

  2. Prepare the SBSE Stop Pay Worksheet and forward to the SBSE Program Coordinator via E-mail with a copy to the Approving Official and the SBSE Budget Analysts.

  3. The SBSE program coordinator will then contact Citibank Customer Service and have Citibank issue the stop payment. If the SBSE Program Coordinator is not available, the SBSE Budget Analyst, will contact Citibank.

  4. Once the stop payment is issued, acknowledgement is sent back to the check holder and Approving Official via the SBSE worksheet.

  5. After 48 hours have passed, the SBSE program coordinator (or SBSE Budget Analyst if they called in the stop payment) will verify on Citidirect that the check has not cleared and then notify the check holder and Approving Official that a replacement check may be issued.

  6. The check holder will complete the SBSE worksheet and send it back to the SBSE program coordinator with the new check number, date issued, dollar amount and payee.

  7. The SBSE program coordinator will update the AWSS spreadsheet. The AWSS spreadsheet will be sent to the AWSS Coordinator at the end of each month. There is a $10 charge (charged to the IRS’ National Account) for each stop payment.

    Note:

    PLEASE NOTATE ALL STOP PAYMENT FEES AS THEY APPEAR ON THE STATEMENT

  8. Stop payments need to be entered into the check registers. On Quickbooks – enter this fee in the "reconciliation " section as a "Service Charge" . This will automatically go into the check register.

5.19.12.5.2.6  (12-16-2008)
Refund Checks Received from Court

  1. If a court refunds cash as a refund of fees paid to them, complete the following:

    • If the cash is in excess of $1.00, obtain a money order (using part of the cash returned for the money order fee) . The money order should be made payable to "U. S. Treasury" and mailed to the Beckley Finance Center, via the Receipt and Control Section.

    • If the cash is $1.00 or less, send the cash to Beckley.

    • Utilize a Form 3210 to transmit the money order or cash and indicate the proper fiscal year commitment funding code.

    • Include a copy of the money order receipt.

    • If you know what Citibank Convenience Check this refund is from, please include the check number on the F3210.

  2. If the refund of fees is in the form of a check:

    • Forward to the Beckley Finance Center.

    • Utilize a Form 3210 to transmit the check and indicate the proper fiscal year commitment funding code.

    • If you know what Citibank Convenience Check this refund is from, please include the check number on the F3210.

5.19.12.5.2.7  (12-16-2008)
Dishonored Checks

  1. Contact the SBSE program coordinator immediately if a Citibank Check is rejected/declined.

5.19.12.5.2.8  (12-16-2008)
Reordering Checks

  1. The check holder completes the Laser Check Order Form.

  2. The approving official must sign and fax the order form to the SBSE program coordinator.

  3. The SBSE program coordinator will sign off and include the accounting code data and fax the form to AWSS, who will place the order.

  4. When checks are received, convenience check holders are to inspect the checks to insure all information on the checks is correct, i.e. name and check numbers. The convenience check holders must E-mail the SBSE program coordinator with the date the checks were received and the check range numbers.

  5. The SBSE program coordinator will update the inventory register maintained for each cashier.

    Note:

    Contact the SBSE program coordinator to obtain a Laser Check Order Form.

5.19.12.5.2.9  (12-16-2008)
Signature Stamps

  1. Citibank allows convenience check holders to sign their checks. However, the payee must also accept signature stamps. The Lien Unit manager must determine if this is allowable.

  2. Prior to purchasing a signature stamp (via RTS), insure the payees will accept a check with a stamped signature.

5.19.12.5.2.10  (01-01-2010)
When a Cashier Leaves

  1. When a cashier leaves the position, the Check Holder/Approving Official must conduct an inventory of all unused checks.

  2. Once all checks are accounted for, the check holder should destroy the unused checks with the manager as a witness.

  3. Send an E-mail to the SBSE program coordinator with the check range numbers and the date the unused checks were destroyed.

  4. Since a check holder’s account will still have uncleared checks to verify, the Approving Official will need to conduct the monthly reconciliation until all checks have been accounted for.

  5. When all checks have cleared, the SBSE program coordinator will prepare the form to close the account.

  6. If a check holder leaves the service, his/her account will automatically be closed. AWSS will have to notify Citibank that checks will still be clearing and request that they continue to allow them to post and clear.

  7. The Approving Official and the SBSE program coordinator are to track all activity in this type of closed account until all checks have cleared.

5.19.12.5.2.11  (01-01-2010)
Lien Convenience Check Fund Expenditures

  1. Convenience check holders can only write checks for lien fees. Any other type of request for funds (Emergency Salary, Travel Advances) must go to an authorized AWSS Small Purchase Convenience Check Fund Cashier.


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