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Part 8. Appeals

Chapter 22. Collection Due Process

Section 1. Front-End and Interim Processing of Collection Due Process and Equivalent Hearing Cases

8.22.1  Front-End and Interim Processing of Collection Due Process and Equivalent Hearing Cases

8.22.1.1  (04-07-2009)
Receipts

  1. All cases received in Appeals must include a transmittal form 12153-A or 12153-B:

    • Form 12153-A - field cases

    • Form 12153-B - ACS cases

      Note:

      All cases coming to Appeals must include a transmittal Form 12153-A or 12153-B; if a case is received that does not include a Form 12153-A or 12153-B, return it to the originator immediately. Using a Form 3210, return the case to the originating office with instructions that the case cannot be accepted by Appeals without a signed and completed Form 12153-A or 12153-B.

  2. The transmittal form will have the following case data to use in carding-in the case on ACDS:

    • Taxpayer Name(s)

    • TINs

    • Date Hearing Request Received

    • POA information (if applicable)

    • Earliest CSED (for EH/RJ hearing requests)

    • MFT/Tax Periods

    • Taxpayer Type

    • Type of Hearing

    • Type of Notice

    • Office Referring Request

    • Location of Referring Collection employee

    • Contact names

    • Active Case Status

    • Documents included in file

  3. Cases will be sent to Appeals with a Form 3210. Acknowledge receipt on the Form 3210 and return the acknowledgement copy to the originating office.

8.22.1.1.1  (10-19-2007)
Initial Review

  1. Refer to Form 12153-A and/or 12153-B to properly card-in the case on ACDS.

8.22.1.1.1.1  (04-07-2009)
Determine TYPE

  1. Card-in cases with one or more of the following three (3) types:

    1. DPLV - Levy hearing request: Taxpayer must receive a CDP Levy Notice (Letter 1058, LT11, CP90, CP92, CP242, CP297 or CP77) before they can request a levy hearing.

    2. DPLN - Lien hearing request: A Notice of Federal Tax Lien is sent for filing and the taxpayer is issued a Letter 3172 before they can request a lien hearing.

    3. DPL2 - Lien and levy hearing request: Taxpayer is sent both a CDP Levy Notice and CDP Lien notice and requests both types of hearings.

8.22.1.1.1.2  (10-19-2007)
Determine Timeliness

  1. If taxpayers receive a CDP Lien or Levy Notice, they may qualify for one of the following types of hearing before Appeals:

    • Collection Due Process (CDP) Hearing

    • Equivalent Hearing (EH)

    • Retained Jurisdiction (RJ) Hearing, which may become necessary after a CDP hearing

8.22.1.1.1.2.1  (10-19-2007)
CDP - A Timely Request

  1. To receive a CDP levy hearing:

    1. The taxpayer must submit a written request for a CDP levy hearing within the 30-day period commencing the day after the date of the CDP levy notice.

    2. If the CDP levy notice is not available for purposes of identifying the date of the CDP levy notice, a TC 971 AC 069 on the tax module identifies the date the CDP levy notice was issued.

  2. To receive a CDP lien hearing:

    1. The taxpayer must submit a written request on or before the "must file by" date on the Letter 3172.

  3. Timely (CDP) hearing requests suspend the collection statute, which is reflected by TC 520 cc 76 or 77.

  4. If Appeals upholds the collection action it issues any one of a number of letters indicating aNotice of Determination Concerning Collection Action(s) Under IRC 6320 and/or IRC 6330, informing taxpayer’s of their right to seek judicial review of Appeals determination in Tax Court; if taxpayers agree with the resolution they may sign a Form 12257, Summary Notice of Determination, waiving their judicial review rights.

  5. Taxpayers may return to Appeals for a Retained Jurisdiction hearing regarding the determination, e.g., collection actions under that determination or a change in circumstances which affects the determination.

8.22.1.1.1.2.1.1  (04-07-2009)
TC 520 cc 76/77

  1. Tax Examiners will input TC 520 cc 76 or 77 on field-sourced CDP hearing requests only. The TC 520 cc 76 or 77 will be input at Stage 4 of the CDP Tracking System. See IRM 8.22.1.1.3.

  2. Levy hearing request (DPLV):

    1. Use TC 520 cc 77 for levy hearing requests.

    2. The date of the TC 520 cc 77 is the date by which the request for a hearing was received by the IRS office to which the taxpayer was directed to send the request. Refer only to the Form 12153-A (box 4) for the date of the TC 520.

  3. Lien hearing request (DPLN):

    1. Use TC 520 cc 76 for lien hearing requests.

    2. The date of the TC 520 cc 76 is the date by which the request for a hearing was received by the IRS to which the taxpayer was directed to send the request. Refer only to the Form 12153-A (box 4) for the date of the TC 520.

  4. Lien and levy hearing requests (DPL2):

    1. Both lien and levy hearing requests must be timely and received on the same date to qualify as DPL2.

    2. Use TC 520 cc 76 for joint lien and levy hearing requests. The date of the TC 520 cc 76 is the date by which the request for a hearing was received by the IRS office to which the taxpayer was directed to send the request. As in (2) and (3) above, refer only to the Form 12153-A (box 4) for the date of the TC 520.

      Note:

      When determining the TC 520 date, do not use a date other than what appears on Form 12153-A (box 4).

8.22.1.1.1.2.2  (10-19-2007)
Equivalent Hearing - A Late Request

  1. Taxpayers must request an equivalent hearing (EH) in writing.

    Note:

    Late-filed requests for a CDP hearing are not automatically classified as a request for an equivalent hearing.

    Note:

    Taxpayers may, verbally, perfect a late-filed CDP request; an additional written request for an EH is not required.

  2. The taxpayer must request an EH within the following timeframes:

    1. Levy - A taxpayer must submit a written request for an EH within the one-year period starting the day after the date of the CDP Notice.

    2. Lien – A taxpayer must submit a written request for an EH one-year plus 5 days starting the day following the filing of the Notice of Federal Tax Lien (NFTL).

  3. EH requests:

    1. Will have Feature Code EH

    2. Are issued a decision letter rather than a Notice of Determination

    3. Have no right to seek judicial review of the decision (taxpayers may, however, seek judicial review of the "timeliness" determination)

    4. Will not have a suspended collection statute (no TC 520 controls)

    5. Do not qualify for retained jurisdiction

8.22.1.1.1.2.2.1  (04-07-2009)
CDPTD - Separate Timeliness Determination Cases

  1. Appeals must review ALL late-filed CDP requests:

    1. Submitted after the one-year timeframe for requesting an EH.

    2. Where the request is late and the taxpayer fails to request an EH.

  2. Collection will fax the APS office in St. Paul, Hartford, or Memphis, the following documents:

    1. Fax cover sheet prominently identifying the request as a "SEPARATE TIMELINESS DETERMINATION"

    2. Form 12153

    3. CDP Notice (L3172, L1058, LT-11, CP77, CP90, CP92, CP242, CP297)

    4. Envelope

    5. Copy of letter, as applicable, sent to taxpayer

    6. ACS only: Copy of DI history

    Note:

    Collection has been directed to only fax Separate Timeliness Determinations, based on the State the taxpayer resides in, to the Memphis, Hartford and St. Paul APS units.

  3. See IRM 8.22.1.1.2.1 for card-in procedures for CDPTD cases.

  4. After the case is carded-in, deliver the request to the Settlement Officer ATM as follows:

    1. Memphis APS - Team #9 or #10 (Memphis campus)

    2. Hartford APS -Team #10 (Hartford)

    3. St. Paul APS –Team #17 (St. Paul)

  5. See IRM 8.22.2.2.4.10 - Separate Timeliness Determinations - for technical review procedures on CDPTDs.

  6. See IRM 8.22.1.4 for CDPTD closing actions.

8.22.1.1.1.2.3  (04-07-2009)
Retained Jurisdiction

  1. Retained Jurisdiction - Appeals retains jurisdiction over it's determinations on timely-filed (CDP) hearing requests. There are two situations where taxpayers may return to Appeals under Retained Jurisdiction:

    1. if they believe that Collection did not carry out the Appeals determination as written

    2. if they have a change in circumstances which affects the Appeals determination

  2. Retained Jurisdiction cases will:

    1. have Feature Code RJ

    2. will not have a TC 520

    3. will be issued a closing letter

      Note:

      Stages 15 and 16, CDPTS stages previously used for the receipt and closure of RJ cases, have been discontinued.

8.22.1.1.1.3  (04-07-2009)
Determine Feature Codes

  1. CDP cases may have one or more of the following Feature Codes:

    • CO = OIC collection alternative investigated by COIC (both the CDP and the OIC WUNO will have CO Feature Code)

    • DP = Related WUNO (both the CDP and related WUNO will have the DP Feature Code)

    • DR = Disaster Relief

    • EH = Equivalent Hearing

    • EI = EITC considered within CDP jurisdiction

    • FV = Frivolous or Delaying Argument

    • ID = Identity Theft

    • NF = Non-Filer

    • PY = Pyramiding In-Business trust fund taxpayer

    • RJ = Retained Jurisdiction

    • SD = Spousal Defense

    • TR = Transferred-in from another Appeals area

    • T1 = Economic Hardship TAS Case

    • T5 = Systemic Hardship TAS Case

  2. APS will add the feature codes EH and RJ when carding-in an Equivalent Hearing or Retained Jurisdiction case.

  3. The hearing officers assigned the cases will add additional feature codes they determine are applicable.

8.22.1.1.1.4  (10-19-2007)
Determine "Related Case" or " Separate WUNO."

  1. A hearing request case may include tax periods that are CDP, EH, and RJ. Refer to the Form 12153-A (or B) for the TYPE. Do NOT change Collection's classification of a tax period. That is the responsibility of the Screener or hearing officer.

  2. Establish separate work units for:

    1. CDP cases with EH code for equivalent hearing cases

    2. CDP cases with RJ code for retained hearing cases

    3. Business Master File (BMF) cases related to an Individual Master File (IMF)

    4. BMF accounts with different EINs. (regardless that they may be related)

  3. Establish related cases within each WUNO. Examples of related cases are:

    1. where more than one Master File Transaction (MFT) is a part of a case

      Example:

      A business entity has MFTs 01, 10 and 02

      Example:

      Joint liabilities where the husband is PRI for some years and the wife is PRI for other years

      Example:

      Joint liabilities where spouses residing together file separate Forms 12153

8.22.1.1.1.5  (10-19-2007)
CDP-Related Cases Requiring Separate WUNOs

  1. The following issues, when raised in a CDP/EH case, will be carded-in with a separate WUNO and assigned feature code DP:

    1. OIC

    2. ABINT

    3. Innocent Spouse

  2. Hearing officers will fax or hand-carry the following documents to their servicing APS office to request creation of the related CDP case summary card:

    1. A copy of the CDP case summary card noted at the top in red "Please create (OIC, ABINT, IS) workunit" with feature code = DP and Notes - XREF (WUNO of the related case).

    2. For OICs only: a copy of page one of Form(s) 656 identifying all periods included on the OIC.

    3. For OICs only: IMFOLI (IMF) or BMFOLI (BMF) with the TOTAL MOD BALANCE totalled for all periods.

  3. Assign the CDP-related WUNO to the hearing officer assigned the CDP WUNO unless specifically directed otherwise.

  4. Follow the procedures in IRM 8.20.5 for establishing Innocent Spouse and Interest Abatement (ABINT) cases. Follow the procedures in IRM 8.23.6 for establishing OIC cases, The exceptions to the regular card-in procedures are listed below.

8.22.1.1.1.5.1  (04-07-2009)
OIC

  1. The hearing officer will date-stamp Form 656 in the upper right corner of Page 1 with the date the Service received the offer. For carding-in purposes:

    1. REQAPPL and RECDATE = date stamped in upper right-hand corner of Form 656

      Note:

      The REQAPPL dates for CDP and non-CDP OICs are different. The REQAPPL date for a non-CDP OIC is the postmark date of the taxpayer's request for appeal.

    2. ASGNDATE = current date (provided by hearing officer)

    3. SOURCE, DO, and PBC entries = those in the related CDP case(s).

  2. Summary Return Information fields:

    1. Add all OIC tax periods to the OIC WUNO

      Note:

      No period(s) should be added to the CDP WUNO just because they are included on the OIC.

    2. Add STAT DATE, which is RECDATE of OIC + Two years

    3. Add STAT CODE"TIPRA" for every OIC period.

      Note:

      TIPRA is a new STAT code used to monitor the 2-year "TIPRA determination" date.

8.22.1.1.1.5.2  (10-19-2007)
ABINT

  1. The hearing officer must first determine that interest abatement has been properly raised before the ABINT WUNO is carded-in.

  2. Use the date the hearing officer requests establishment of a separate ABINT WUNO for REQAPPL, RECDATE and ASGNDATE.

8.22.1.1.1.5.3  (10-19-2007)
Innocent Spouse

  1. CCISO investigates CDP Innocent Spouse claims. At the completion of CCISO's investigation, only claims where CCISO recommends partial or no relief will be carded-in.

  2. Use the date the CCISO's determination is received in Appeals for the REQAPPL, RECDATE, and ASGNDATE.

8.22.1.1.2  (04-07-2009)
Carding-in CDP and EH Cases

  1. Appeals receives eCase data from the Automated Collection System (ACS) and the Integrated Collection System (ICS).

  2. Search the eCase pool by TIN when carding-in ACS and ICS CDP cases.

  3. eCase automatically transfers specific data fields to ACDS.

  4. Verify the data and enter additional information when necessary.

    1. Verify entity information via IDRS cc ENMOD.

  5. ACDS carding-in procedures:

    Code Source/Action
    TP Name eCase and/or Form 12153-A/B

    Note:

    ONLY use the name(s) of the taxpayer(s) requesting the hearing. If the secondary taxpayer in a joint liability requests the hearing, ONLY use the name of the secondary taxpayer.

    Address eCase and/or Form 12153-A/B

    Note:

    ONLY use the address of the taxpayer requesting the hearing. If the secondary taxpayer in a joint liability requests the hearing, use the address of the secondary taxpayer.

    TIN eCase and/or Form 12153-A/B.

    Note:

    Always use the PRIMARY TIN. to card-in a joint case. The PRIMARY TIN must be used even if the SECONDARY TIN. solely requested the hearing. PRIMARY TINs. MUST be used on ACDS to match CDPTS. Enter secondary TIN. on TIN2 line. Enter on "Note" line that secondary spouse requests hearing.

    TIN TYPE eCase and/or Form 12153-A/B: MFT 30 only:

    • Pri (Primary)

    • Sec (Secondary)

    • Both

    Note:

    Use "Sec" for TIN TYPE where the secondary TIN solely requests the hearing of a joint liability.

    MFT eCase and/or Form 12153-A/B

    Note:

    Do NOT link EIN. and SSN. TINs. as they are separate entities. A BMF accompanying an IMF will have a separate WUNO. The MFTs. within an EIN or SSN. may be linked. See (7) below for linking criteria.

    TYPE Form 12153-A/B:

    • DPLN (lien)

    • DPLV (levy)

    • DPL2 (joint lien and levy)
    FEATCD

    • CO = OIC collection alternative investigated by COIC (both the CDP and the OIC WUNO will have the CO Feature Code)

    • DP = Related WUNO (Both the CDP and related WUNO will have the DP Feature Code)

    • DR = Disaster Relief

    • EH = Equivalent Hearing

    • EI = EITC considered within CDP jurisdiction

    • FV = Frivolous or delaying argument

    • ID = Identity Theft

    • NF = Non-Filer

    • PY = Pyramiding In-Business trust fund taxpayer

    • RJ = Retained Jurisdiction

    • SD = Spousal Defense

    • TR = Transferred-in from another Appeals Area

    • T1 = Economic Hardship TAS Case

    • T5 = Systemic Hardship TAS Case
    AO ATM will assign
    ASGNDATE Date ATM assigns case
    REQAPPL Form 12153-A/B = Stage 1 date on the CDPTS
    RECDATE Date case received in Appeals
    CREDATE Computer generated
    SOURCE

    • CO (Field)

    • SC (ACS)
    DO Two-digit code identifying the compliance office or campus that sent the case to Appeals
    PBC Primary Business Codes - The Primary Business Code (PBC) is based upon the Business Unit supplying the case to Appeals (see ACDS Utilities Menu for active PBCs).
    KEYTP

    • If the case you are establishing is the key case, leave this item blank

    • If there is more than one case in the work unit, enter the name of the key case

      Note:

      Do not input KEYTP for cases that are not linked.
    KEYTIN Enter the TIN of the key taxpayer
    KEYPER Enter earliest tax period of the key taxpayer as shown on transmittal.
    REPNAME Form 2848 or CFINK: Enter the name (last name first) and address of the taxpayer’s representative
    GRADE Determined by ATM
    AIMS Enter E since these cases will not be controlled on AIMS
    TXPERIOD eCase and/or Form 12153-A/B: Enter all tax periods listed on Form 12153-A/B. A tax period modifier, N (no return) or C (copy of return) should be added to each tax period.
    STATDATE Form 12153-A/B:

    1. Leave blank for CDP

    2. Enter earliest CSED for EH or RJ periods
    STATCD

    • SUSP for CDP cases

    • CSED for EH or RJ
    SND Leave blank
    PROPOSED TAX PEN/DEF Leave blank
    REVISED TAX/PEN Leave blank
    DDAMTCLM Leave blank
    ACTION Enter date and locations (From/To) when shipping case to another Appeals office

  6. Linking criteria. The following fields must be identical to link MFTs within a WUNO:

    REQAPPL

    RECAPP

    TYPE =

    DPLN (with feature code EH)

    DPLN (w/o feature code EH)

    DPLV (with feature code EH)

    DPLV (w/o feature code EH)

    DPL2 (with feature code EH)

    DPL2 (w/o feature code EH)

    Note:

    Do not link a DPLN (with or w/o EH) with a DPLV (with or without EH) with the same REQAPPL and RECAPP date. This case should, instead, be created as a DPL2.

8.22.1.1.2.1  (04-07-2009)
Carding-In Separate Timeliness Determinations: TYPE = CDPTD

  1. Separate Timeliness Determination cases are not:

    1. added to CDPTS

    2. sent a Uniform Acknowledgement Letter

    3. sent an Appeals closing letter

    4. maintained in a "closed office file"

  2. Only the following ACDS fields are completed for TYPE = CDPTD:

    TP Name

    TIN

    Street, City, State, Zip

    MFT

    TYPE = CDPTD

    SOURCE

    DO

    REQAPPL = Use date Collection provides on fax cover sheet

    RECAPP = Date received in Appeals

    KEYPER = Oldest period

    AIMS = E

    TAXPER = List all tax periods on CDP Lien or Levy Notice

    CODE = SUSP

    PRIBUSCD = The Primary Business Code (PBC) is based upon the Business Unit supplying the case to Appeals (See ACDS Utilities Menu for active codes).

  3. Link MFTs on the same entity.

  4. Do not link IMF and BMF.

8.22.1.1.2.2  (10-19-2007)
CDP/EH Cases with Special Card-In Requirements

  1. Some CDP or EH cases require special feature codes or entries in LOC fields.

8.22.1.1.2.2.1  (04-07-2009)
Son of Boss Cases

  1. Collection will identify a Son of Boss case on Form 12153-A/B.

  2. Input the following additional information on ACDS for SOB-identified cases:

    1. Location Field 8 (LOC 8) = SOB

    2. Note section - input "Son of Boss Tax Shelter"

8.22.1.1.2.2.2  (04-07-2009)

Limited Liability Corporations (LLC)

  1. Collection will identify LLC cases on the Form 12153-A/B. LLC cases are discussed in more detail in IRM 8.22.2 and IRM 5.1.21.

  2. An LLC is carded-in on ACDS as the case appears on IDRS. The information on ACDS must match IDRS.

  3. After initial carding-in of the case, when the hearing officer later determines that the LLC is a disregarded single-owner, after APS receives the ACDS update form, make the following additions to the CSC:

    1. Add the single-owner name to the name line of the ACDS entity section BEHIND the LLC name, for example: xxxxx LLC, xxx xxxxx, owner

    2. Add the single owner SSN to the TIN2 field

8.22.1.1.2.3  (10-19-2007)
ACDS Update and Correction Procedures

  1. The campus and field offices will use the following procedures to request assistance from APS in correcting or updating ACDS.

  2. Prepare "ACDS Update Request Form" found on APGolf under ACDS Updates, completing only the required items.

  3. Find the correct E-mail address on OUTLOOK and E-mail the update request form via encrypted E-mail (do not send to the PTM’s mailbox) to:

    *AP-TS-APS-(your Area, East or West)-(your APS local office)

  4. APS will process the "ACDS Update Request Form" within 24 hours of receipt. APS will E-mail the requesting employee if clarification is needed to process the request.

  5. APS will return any requests for update/corrections that are not submitted via the electronic form/mailbox. The electronic mailboxes allow APS management to monitor timeliness and accuracy of the updates.

8.22.1.1.3  (04-07-2009)
Collection Due Process Tracking System (CDPTS)

  1. The CDPTS is an IDRS-based system used to monitor the progress and location of hearing requests. A case is added to the CDPTS upon receipt of a CDP or Equivalent Hearing request containing the required information to request a hearing. As the case is processed, the CDPTS is updated to reflect the current status of the case.

  2. There are 13 current stages in the CDPTS. Each stage reflects the process that a CDP case or Equivalent Hearing case can follow. Not all stages are applicable in all situations.

    Figure 8.22.1-1

    Stage Title Stage Title
    1 Receipt of Hearing Request 10 District Court Complaint Date (effective 10/17/2006, all judicial reviews are in Tax Court)
    2 Reserved 11 District Court Decision Date
    3 Used When a Case is Transferred To Appeals 12 Resolved Prior to Appeals Consideration
    4 Received By Appeals 13 Appeals Case Closed - Sent to Compliance
    5 (Discontinued) Previously used when ARI was issued to Compliance. 14 Closed Case Received in Collection
    6 (Discontinued) Previously used when an ARI was returned from Compliance. 15 (Discontinued) Previously used for Retained Jurisdiction case in Appeals
    7 Appeals Decision Reached 16 (Discontinued) Previously used for Retained Jurisdiction case closed
    8 Tax Court Decision Reached 24 Concluding Actions Taken
    9 Tax Court Decision Date    

  3. APS is responsible for updating the following stages:

    1. Stage 4 - Update to Stage 4 with the date the case is received from Collection.

      Note:

      Collection will no longer update a case to stage 3. The case should be updated to Stage 4 from Stage 1.

      ACS will continue to update to stage 3.

      Note:

      If the case is not in Stage 1, do not card the case in. Return to originator on a Form 3210 with an explanation in the "Remarks" section that the case needs to be added to CDPTS and returned to Appeals.

      Note:

      As of January 1, 2007, APS will input TC 520 cc 76/77 on field-sourced cases at Stage 4. A dialogue box will appear when adding Stage 4 that will ask "yes" or "no" for a TC 520. Answer "yes" for Revenue Officer cases and insert the "REQAPPL" date where indicated.

      Reminder:

      After updating the case to Stage 4, print a CDPTS screen shot to verify that all of the necessary periods were included in the update. Include a copy of the input screen in the case file.

    2. Stage 7 - Update to Stage 7, Appeals Decision Reached, when issuing the Decision/Determination/Closing letter with the Reason Code (CS=Collection Sustained; CA=Collection Alternative; PR=Premature Referral; WD=Withdrawal) and Resolution Reason listed on customized CDP 5402.

    3. Stage 8 - Update to Stage 8 with Tax Court Petition Date

    4. Stage 9 - Update to Stage 9 with Tax Court Decision Date

    5. Stage 13 - Update when case is closed in Appeals. If a Determination Letter was issued, this will be after completion of suspense period and, if applicable, any court reviews. If a Decision Letter or Closing Letter (with withdrawal or Form 12257 Waiver) is issued, Stage 7 and Stage 13 may have the same date.

      Note:

      All back-end processing, including input of installment agreements, CNC, etc. must be complete prior to update to Stage 13.

      Reminder:

      After updating the case to Stage 13, print a CDPTS screen shot to verify that all of the necessary periods were included in the update. Include a copy of the input screen in the closed office file.

  4. See IRM 5.1.9 and IRM 8.22.2 for additional information on the CDP Tracking System.

8.22.1.2  (10-19-2007)
Interim Processes

  1. There are many interim processes that may take place after the hearing officer receives a CDP/EH hearing request before they issue a Determination, Decision or Closing Letter. Some of the Interim Processes are:

    1. Issuing an ARI to Compliance

    2. Carding-in a related OIC, Innocent Spouse or ABINT WUNO See IRM 8.22.1.1.1.5.1. See IRM 8.22.1.1.1.5.2. See IRM 8.22.1.1.1.5.3.

    3. Abatement of interest, penalty or tax

    4. Credit transfer

8.22.1.2.1  (04-07-2009)
ARI Issuance - Required ACDS Updates

  1. Hearing officers will send Compliance a written request when specific information or action is needed on a CDP or EH case. Hearing officers will use Form 2209, Other Investigation, or Form 10467, Appeals Referral investigation, for this purpose.

  2. Hearing officers will issue ARIs in the following circumstances

    • BA - Bankruptcy

    • CD - Case Development OIC

    • EI - EITC Determination

    • FV - Financial Verification

    • IS - Innocent Spouse Determination

    • LD - Liability Determination

    • OT - Other Case Development

  3. The hearing officer will E-mail, encrypted, a copy of the ARI to their servicing APS office with a request to update ACDS.

  4. Upon receipt of the E-mail, APS will:

    1. update ACDS to DDJRET, which will automatically update the ACDS status to E/DD

  5. Using encrypted E-mail, the hearing officer will alert APS when Compliance completes the ARI investigation. APS will:

    1. return the case to the appropriate ACDS status. Enter the date of receipt of the information in the "From" field on ACDS

  6. The requirements to update the CDPTS to stages 5 and 6 as the ARI is opened and closed have been discontinued.

8.22.1.2.2  (10-19-2007)
Interim Adjustments

  1. Hearing officers may require an interim adjustment before closing their CDP/EH case.

  2. Hearing officers will prepare adjustment requests generally using one of the following forms:

    1. Form 3870 - Request for Adjustment

    2. Form 2424 – Credit Transfer

    3. Form 4159 – Payment Tracer

    Note:

    Interim adjustment requests must be initialed by the hearing officers ATM who will ensure the need for the interim action.

  3. Hearing officers will E-mail, fax, or hand-carry all interim adjustment requests to the APS CDP campus units at either Memphis or Fresno .

    Note:

    The hearing officer will generate the "ACDS Update Request form" on APGOLF, retitle the form "CDP Interim Adjustment Request form" as a cover sheet for the adjustment form.

  4. APS employees will inform the requesting employee via fax or E-mail after processing their interim adjustment.

8.22.1.3  (04-07-2009)
Closing Letters

  1. A closing letter will be prepared for every CDP and Equivalent Hearing closing. The type of letters and the mailing requirements for each letter are discussed below.

    Note:

    The only exception where a closing letter is not required is for withdrawn CDP cases that did not receive an Appeals acknowledgment letter.

  2. Information on the type and purpose of most closing letters is also contained in IRM 8.22.2.

8.22.1.3.1  (04-07-2009)
CDP: Notices of Determination

  1. In an unagreed CDP case, the hearing officer will prepare one of the following Notices:

    1. Letter 3193, Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or 6330.

    2. Letter 4299, Notice of Determination Concerning Collection Action(s) under Section 6320 and/or 6330, Case Resolved in Bankruptcy Court - When CDP issues are resolved in bankruptcy court.

    3. Letter 4389, Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or 6330 and Abatement of Interest Under Section 6404 - When abatement of interest is raised as an issue.

    4. Letter 4390, Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or Your Request for Relief from Joint and Several Liability under Section 6015 - When innocent spouse is raised as an issue.

    Note:

    The hearing officer will no longer prepare a separate Innocent Spouse determination letter or an Interest Abatement claim disallowance letter when these issues are raised during the hearing. Instead, the combination letters will now be used to communicate the decision of Appeals.

  2. A Determination Letter must be sent separately, certified or registered, to each joint filer.

  3. The steps for issuing a notice of determination letter are:

    1. Verify the address using ENMOD, SPARQ or INOLES

    2. Send the letter Certified Mail if the taxpayer lives within the U.S. Send the letter Registered Mail if the taxpayer lives outside the U.S.

    3. Send the appropriate copies of the letter to the authorized representative, if there is one.

    4. Put a copy of the letter(s) and all attachments in the administrative file.

    5. Enter the taxpayer’s name, mailing address as it appears on the envelope, and the mailing date in the Form 3877 mailing record.

  4. Update CDPTS = Stage 07 when determination letter issued.

  5. Update ACDS for CDP WUNO:

    • SNTYPE = 030A

    • SNDATE =date letter is mailed. The letter MUST be mailed on the date on the letter

    • Letter 3193 LACTION = CDP–DEF

    • Letter 3193 LTODATE= Letter Date + 60 days

      Note:

      The LTODATE represents the default date. Use the ACDS Utilities Menu "Target Date" tool, if necessary, to determine the LTODATE

      Note:

      The default date is not the systemically-calculated SNEXPDATE + 30 days.

    • SND = Y

  6. Update ACDS for CDP-related Innocent Spouse WUNO:

    Note:

    CDP cases with related Innocent Spouse WUNOs must now use combination closing letter 4390 to communicate the decision of Appeals.

    • SNTYPE = 090A

    • SNDATE =Date letter 4390 is mailed. The letter MUST be mailed on the date on the letter.

    • Letter 4390 LACTION = IS–DEF

    • Letter 4390 LTODATE= Letter Date + 120 days

      Note:

      The LTODATE represents the default date

    • SND = Y

  7. Update ACDS for CDP-related Abatement of Interest WUNO:

    Note:

    CDP cases with CDP-related Abatement of Interest WUNOs must now use combination closing letter 4389 to communicate the decision of Appeals.

    • SNTYPE = 180A

    • SNDATE =Date letter 4389 is mailed. The letter MUST be mailed on the date on the letter.

    • Letter 4389 LACTION = AI–DEF

    • Letter 4389 LTODATE= Letter Date + 210 days

      Note:

      The LTODATE represents the default date

    • SND = Y

  8. Suspend the administrative file until one of the following occurs:

    1. the taxpayer petitions

    2. the time period for filing a petition expires

  9. Generate an Ad Hoc report using either SNTYPE=060A, 120A, or 210A to follow up on the default dates. See IRM 8.22.1.5.

8.22.1.3.2  (04-07-2009)
CDP: Supplemental Notices of Determination

  1. Occasionally, a court will remand a CDP case to Appeals for further action. When this occurs, Appeals will generally issue a Supplemental Notice of Determination after reconsideration of the case.

  2. After first contacting the ATM, the remanded case will be sent by Counsel directly to the hearing officer to whom the case will be assigned.

  3. Upon receiving the remanded case from Counsel, the SO will E-mail APS with their assignment information, and APS will take the following action:

    1. Change the case from PART 3 (Counsel jurisdiction) to PART 2 (Appeals jurisdiction) on ACDS

    2. Input interim closing code 42, Remanded Case

  4. When work on the remanded case has been completed, the hearing officer will prepare Form 2828 to return the case to APS, through the ATM.

  5. Upon receiving the case from the ATM, APS will take the following actions:

    1. Return the case to PART 3 on ACDS

    2. Input interim closing code 43, Petitioned Case

    3. Mail the Supplemental Notice of Determination

  6. Send the Supplemental Notice of Determination Letter as follows:

    1. Separately, to each joint filer

    2. Via regular mail, not certified or registered mail.

  7. Return the case to Area Counsel using Form 3210.

    Note:

    Technical Guidance for working remanded CDP cases can be found in IRM 8.22.2.3.

8.22.1.3.3  (04-07-2009)
CDP/Equivalent Hearing: Disregard Letter

  1. When issuing a Letter 4381, follow established procedures for issuing a notice of determination or a decision letter. See IRM 8.22.2.2.10.3.1 for procedures to disregard a CDP/EH request.

  2. The Letter 4381 will be sent by first class mail. Certified or registered mailing is not required.

  3. If the hearing request is signed by both joint taxpayers who are living at the same address, send a single letter addressed to both taxpayers.

  4. Send separate letters to joint taxpayers that are not living at the same address.

  5. Send a copy of the letter(s) to the authorized representative, as needed.

  6. Verify addresses using ENMOD, INOLES or SPARQ.

  7. Place a copy of the letter and all attachments in the administrative file.

  8. Follow established procedures to close the case on ACDS and the CDPTS.

    Note:

    There is a new closing code (cc 13)

    for disregarded hearing requests. Input TC 522 cc 76 or cc 77 when a CDP or EH case is closed with closing code 13.

  9. Return the entire case file to the field or ACS where the case is closed as "disregarded" (cc 13). The case file must include the following:

    1. The taxpayer's frivolous hearing request, and

    2. All Appeals correspondence, including the Appeals Letters 4830, 3846 and 4381.

  10. Make a copy of all documents for a closed office file.

  11. For a period of two years, retain the disregarded hearing request closed office file.

8.22.1.3.4  (04-07-2009)
Equivalent Hearing: Decision Letters

  1. In an equivalent hearing case, the hearing officer will prepare one of the following decision letters:

    1. Letter 3210, Decision Letter Concerning Equivalent Hearing Under Section 6320 and/or 6330 of the Internal Revenue Code.

    2. Letter 4300, Decision Letter Concerning Equivalent Hearing Under Section 6320 and/or 6330 of the Internal Revenue Code - Case Resolved in Bankruptcy Court - When the case issues are resolved in bankruptcy court.

    3. Letter 4439, Decision Letter Concerning Equivalent Hearing Under Section 6320 and/or 6330 of the Internal Revenue Code and Your Request for Relief and Several Liability Under Section 6015 - When innocent spouse is raised as an issue.

    4. Letter 4440, Decision Letter Concerning Equivalent Hearing Under Section 6320 and/or 6330 of the Internal Revenue Code and Abatement of Interest Under Section 6404 - When abatement of interest is raised as an issue.

      Note:

      The hearing officer will no longer prepare a separate innocent spouse or interest abatement claim disallowance letter when these issues are raised during the equivalent hearing. Instead, the hearing officer will prepare combination letters to communicate the decision of Appeals.

  2. Stand-alone EH cases (Letter 3210) are closed and processed by APS Campus offices.

  3. Combination EH and Innocent Spouse of Abatement of Interest claim letters (Letters 4440 and 4439) are processed by Campus APS AFTER the suspense period for the NODs.

  4. If a case has both EH and CDP work units, close the EH work unit. Do not hold the EH work unit pending the resolution of the CDP.

    Caution:

    If the EH WUNO is closed separate from the CDP WUNO, copy a complete set of documents for an EH closed office file.

  5. A Decision Letter will always be sent separately to joint filers. Send Decision Letters as follows:

    1. Verify the address using ENMOD, INOLES or SPARQ.

    2. Send the appropriate copies of the letter(s) to the authorized representative, if there is one.

    3. Put a copy of the letter and all attachments in the administrative file.

  6. Combination letters 4439 and 4440 will be sent by certified mail. See IRM 8.22.1.3.1 for certified mail requirements.

  7. Follow guidance in IRM 8.22.1.3.1 for ACDS entries when issuing a Decision Letter involving Interest Abatement or Innocent Spouse WUNOs.

  8. Follow guidance in IRM 8.22.1.3.1 for ACDS entries when mailing a Combination letter 4439 or 4440; see IRM 8.20.7 for ACDS closing actions at the conclusion of the suspense period.

  9. An EH WUNO must be suspended with a related ABINT or IS WUNO. The EH WUNO cannot be closed on ACDS until the related ABINT or IS WUNO is also closed.

  10. To update an EH WUNO on ACDS:

    1. Input appropriate closing code

    2. LTODATE - MM/DD/YYYY = date the EH Decision Letter was issued

  11. Close PEAs: Use PEAs closing code 03 and a completed date equal to the date the closing actions are completed.

8.22.1.3.5  (04-07-2009)
CDP/EH Withdrawal Acknowledgement Letter

  1. In all cases where Appeals has previously sent the taxpayer the Uniform Acknowledgement Letter or combination UAL-Substantive Contact Letter, hearing officers will prepare a Letter 4383 if they secure a Form 12256.

  2. The Letter 4383:

    1. Provides the taxpayer with the date Appeals received the withdrawal.

    2. Provides Appeals Processing with the date Appeals received the withdrawal. The received date of the withdrawal is used for input of the TC 521 cc 76/77.

    3. May be signed by either the hearing officer or the Collection Specialist.

    4. If joint taxpayers are living at the same address, send a single letter addressed to both taxpayers.

    5. If joint taxpayers are not living at the same address, send separate letters.

  3. Do not enclose a copy of Form 12256.

  4. Send the taxpayer the original closing letter with a copy to their authorized representative, if they have one.

  5. Appeals will not send the taxpayer Letter 4383 if the withdrawal was received before Appeals acknowledged receipt of the case with either the UAL or combination UAL-SCL.

8.22.1.3.6  (04-07-2009)
CDP/EH OIC Acceptance Letter

  1. Hearing officers will prepare the OIC acceptance letter (L673) for CDP/EH OICs they accept.

  2. APS will date and issue the OIC acceptance letter to the taxpayer as an attachment to the CDP Notice of Determination, EH Decision letter, or Form 12257.

    Note:

    The CDP Letters and the OIC Acceptance Letter must have the same date.

8.22.1.3.7  (04-07-2009)
Form 12257 Waiver Closing Letter

  1. Hearing officers will prepare a closing letter if they secure a Form 12257 Waiver.

  2. A closing letter accompanying a Form 12257 requires the ATM's signature.

  3. If joint taxpayers are living at the same address, send a single letter addressed to both taxpayers at that address.

  4. Send separate letters to joint taxpayers who are not living at the same address.

  5. Enclose a copy of Form 12257 with the closing letter.

  6. Send the taxpayer the original closing letter and the original waiver with a copy to the authorized representative, if applicable.

8.22.1.3.8  (10-19-2007)
Retained Jurisdiction Closing Letter

  1. Hearing officers will prepare an Appeals Case Memorandum and a closing letter for an RJ case.

  2. The Form 5402 may suffice as the ACM.

  3. Send the taxpayer the original closing letter with a copy to their authorized representative, if they have one.

8.22.1.4  (04-07-2009)
Procedures for Closing CDPTD (Separate Timeliness Determination) Cases

  1. CDPTD cases will not have a closing letter. Appeals does not communicate with the taxpayer re timeliness determinations. Appeals timeliness determination is provided to Collection who relays the information to the taxpayer.

  2. Use Form 5402 to close the case on ACDS. The 5402 will not have an ATM signature; no review is necessary. See IRM 8.22.3.3.2.7 for CDPTD closing code definitions.

  3. Shred 5402 after case is closed on ACDS.

  4. You do not need to update CDPTS (CDPTDs are not added to CDPTS).

  5. You do not need to prepare a closed "office file" .

8.22.1.5  (10-19-2007)
Procedures for Determining Whether the Taxpayer Petitioned

  1. This section contains procedures for:

    1. determining whether a taxpayer petitioned their CDP NOD or a related Innocent Spouse NOD or Interest Abatement Claim Disallowance in the U.S. Tax Court

    2. processing the administrative file to Counsel on a petitioned case

    3. defaulting the determination letter

  2. Effective October 17, 2006, the U.S. Tax Court has sole jurisdiction for CDP NODs. PACER no longer is required to be checked, since PACER records U.S. District Court filings which are no longer applicable to CDP cases.

  3. Office of Chief Counsel provides Appeals with docketed case information via an automated system, TLCATS:

    1. TLCATS - The Tax Litigation Counsel Automated Tracking System is a management information system used by the Office of Chief Counsel to track all aspects of Tax Litigation cases. It is an on-line interactive and batch processing system that allows Chief Counsel personnel to store and retrieve case data throughout all phases of the Tax Litigation process allowing for case coordination nationwide.

  4. Generate an Ad Hoc report to follow up on the default dates:

    1. CDP = 060A

    2. Innocent Spouse = 120A

    3. Interest Abatement = 210A

    Caution:

    If a CDP WUNO. is suspended with a related ABINT or IS WUNO, the CDP WUNO cannot be closed on ACDS until the related WUNO is also closed.

  5. Using TIN of case, review TLCATS using one of the default dates in (4) above..

    1. Look for an "L" after the CASE NUM on line 1. "L" indicates CDP.

    2. If you do not find a case with an "L" , also look, also, for an "S" after the CASE NUM. A CDP case may also have an "S" for Small-docketed.

      Note:

      "S" cases cannot be appealed.

  6. See IRM 8.22.1.5.1 if the NOD was petitioned.

  7. See IRM 8.22.1.5.2 if the NOD was not petitioned.

8.22.1.5.1  (04-07-2009)
Procedures for Petitioned Cases

  1. Update ACDS case/returns screen:

    1. DKTNO = docket number

    2. CLOSINGCD = 43 (This closing code will move the case to status E/T)

    3. DATECLSD = date case sent to Counsel

    4. ACTION = DCJUR

    5. TODATE = date case sent to Counsel

    6. Determination Letter STATDATE= do not delete entry

    7. STATCODE = SUSP for each tax period identified on the petition

  2. Update CDPTS to Stage 8.

  3. Send the administrative file to the Area Counsel having jurisdiction. If Form 2828, Transmittal Memo, is used, file a copy in the office file, and establish a follow-up "tickler" control until Counsel acknowledges receipt of the administrative file.

  4. See IRM 8.22.3.7 for procedures following entry of the Tax Court decision.

8.22.1.5.2  (10-19-2007)
Defaulting Notices of Determination (NOD)

  1. After all applicable suspense periods (CDP, IS, ABINT) have expired, if no petition has been filed, update the WUNOs on ACDS as follows:

    1. CDP

    • Closing code = 05

    • LACTION = date shipped to and name of campus site (from drop down box), if applicable

  2. Innocent Spouse WUNO: See IRM 25.25 for closing actions.

  3. Interest Abatement WUNO: See IRM 8.20.7 for closing actions.

  4. See IRM 8.22.3 for CDP Back-End Processing for CDP and EH cases.

8.22.1.6  (04-07-2009)
Premature CDP Case Closing on ACDS - Reopening Procedures

  1. Occasionally, the APS DIMS unit will identify a CDP case on a DIMS listing, erroneously closed as a default, that needs to be reopened.

  2. Examples of why a CDP case has been closed on ACDS and needs to be reopened are:

    1. Late-filed petition

    2. Taxpayer checked incorrect box when filing their petition and case was not flagged as CDP on TLCATS

  3. The DIMS unit will take the following actions on ACDS to reopen a case:

    1. Using the "Special Activities" menu on ACDS, recall the case to the hearing officer. The "recall" removes the previous closing information that APS input

    2. Input closing code 43

    3. Enter docket number

    4. Enter name of Counsel attorney

    5. In notes, explain the reason for the recall

  4. The DIMS unit will also reinstate codes on IDRS/CDPTS as follows:

    1. IDRS: Input TC 520. See IRM 8.22.1.1.1.2.1.1.

    2. CDPTS: Delete Stage 13 and update to Stage 8. See IRM 8.22.1.1.3.

  5. The DIMS unit will take the necessary steps to locate the administrative file and forward it to the Area Counsel.

  6. The APS CDP unit will take responsibility of the recalled CDP case for back-end closing actions after the Tax Court decision is entered. See IRM 8.22.3.


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