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

Manual Transmittal

September 21, 2012

Purpose

(1) This transmits revised IRM 8.22.1, Front-End and Interim Processing of Collection Due Process and Equivalent Hearing Cases.

Material Changes

(1) Revised IRM to reflect new organizational titles resulting from the Appeals 2012 Alignment Project.

Effect on Other Documents

This IRM supersedes IRM 8.22.1 dated May 18, 2012.

Audience

Account and Processing Support employees, Appeals Officers, Settlement Officers and Appeals Account Resolution Specialists.

Effective Date

(10-01-2012)


Susan L. Latham
Director, Policy, Quality and Case Support

8.22.1.1  (10-01-2012)
Receipts

  1. Cases will be sent to Appeals on a Form 3210.

  2. All CDP or EH cases received in Appeals must include a transmittal Form 12153-A or Form 12153-B:

    • Form 12153-A – field cases

    • Form 12153-B – ACS cases

      Note:

      If a case is received that does not include a Form 12153-A or Form 12153-B, return it to the originator immediately. Use Form 3210 to 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 Form 12153-B.

  3. If the case has the appropriate Form 12153-A or Form 12153-B, acknowledge receipt on the Form 3210 and return the acknowledgement copy to the originating office.

  4. Form 12153-A or Form 12153-B transmittal will have the following case data to be used in carding the case in on ACDS:

    • Taxpayer Name(s)

    • TIN(s)

    • 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

8.22.1.1.1  (10-01-2012)
Initial Review

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

8.22.1.1.1.1  (10-01-2012)
Determine TYPE

  1. Cases will be carded-in with one or more of the following three (3) types:

    1. DPLV - Levy hearing request: Taxpayer must receive a CDP Levy Notice (Letter 1058 , LT-11 , CP77, CP90 , CP92 , CP242 , CP297 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  (10-01-2012)
Determine Timeliness

  1. If taxpayers receive a CDP Lien or Levy notice, they may qualify for one of the following types of hearings 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  (10-01-2012)
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 informing taxpayers 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 if they believe that the Collection function did not carry out Appeals' determination or if there was a change in circumstances that affects the determination. See IRM 8.22.9.20

8.22.1.1.1.2.1.1  (10-01-2012)
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. 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 the request for a hearing was received by the IRS office listed in the CDP notice. The CDP notice directs taxpayers where to send the request for a hearing. Refer only to the Form 12153-A (box 6) or Form 12153-B (box 4) for the date of the TC 520.

  3. 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 the request for a hearing was received by the IRS office listed in the CDP notice. The CDP notice directs taxpayers where to send the request for a hearing. Refer only to the Form 12153-A (box 6) or Form 12153-B (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 the request for a hearing was received by the IRS office listed in the CDP notice. The CDP notice directs taxpayers where to send the request for a hearing. As in (2) and (3) above, refer only to the Form 12153-A (box 6) or Form 12153-B (box 4).

      Note:

      When determining the TC 520 date, do not use a date other than what appears on Form 12153-A (box 6) or Form 12153-B (box 4).

8.22.1.1.1.2.2  (10-01-2012)
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 within the one-year plus 5 business day period 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 (Letter 3210) rather than a Notice of Determination.

    3. Have no right to seek judicial review of the decision (taxpayers may, however, seek judicial review if they dispute that their EH case was actually a timely CDP request).

      Note:

      If the EH case has a related ABINT or IS (Innocent Spouse) WUNO, the abatement of interest or innocent spouse portion of the EH hearing is eligible for judicial review. These types of EH cases are resolved by issuing a modified Decision Letter (Letter 4440 for abatement of interest and a Letter 4439 for innocent spouse relief). Also see IRM 8.22.1.3.4 for more info on EH Decision Letters.

    4. Will not have a suspended collection statute (no TC 520s are input to IDRS).

    5. Do not qualify for retained jurisdiction hearings.

8.22.1.1.1.2.2.1  (10-01-2012)
CDPTD - Separate Timeliness Determination Cases

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

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

    2. Where the request is late and the taxpayer fails to timely perfect a request for an EH.

    3. Submitted after the one-year time frame for requesting an EH.

  2. Field Collection and ACS will fax the APS office in St. Paul and the Cincinnati Campus Appeals office in Florence, KY the following documents:

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

    2. Form 12153

    3. CDP Notice (Letter 3172,Letter 1058, LT-11, CP77 , CP90, CP92, CP242, CP297

    4. Envelope

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

    6. ACS only: Copy of AMS history

    Note:

    Collection has been directed to only fax Separate Timeliness Determinations to the St. Paul and Cincinnati Campus Appeals APS units based on the state where the taxpayer resides.

  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 CDPTD cases to the hearing officer ATM as follows:

    1. Cincinnati Campus Appeals APS will deliver their cases to the Local AO/SO teams.

    2. St. Paul APS will deliver their cases to Team 6 in St. Paul.

  5. See IRM 8.22.5.9 - 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  (10-01-2012)
Retained Jurisdiction

  1. Appeals retains jurisdiction over its 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

8.22.1.1.1.3  (10-01-2012)
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 (for RRAP cases only)

    • 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. Hearing officers will add additional feature codes they determine are applicable.

8.22.1.1.1.4  (10-01-2012)
Determine "Linked" 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 Form 12153-B for the TYPE. Do NOT change Collection's classification of a tax period. That is the responsibility of the AARS or hearing officer. Some CDP or EH cases will have related cases that are linked within the same WUNO and others may require related cases that have separate WUNOs.

  2. Establish separate work units for:

    1. Hearing requests where some years are timely (CDP) and some years are not (EH)

    2. Retained Jurisdiction (RJ feature code) hearing requests

    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)

    5. Joint 1040 liabilities for a husband and wife and one spouse has a separate TFRP assessment

  3. Establish linked cases within each WUNO where there are:

    1. More than one Master File Transaction (MFT) as part of a case

      Example:

      A business entity has MFTs 01, 10 and 02

      Example:

      A single taxpayer owes MFT 30 and MFT 55 liabilities

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

    3. Joint liabilities where spouses residing together file separate Form 12153s

    4. MFT 31 modules created by CCISO as a result of one spouse filing an Innocent Spouse claim on a joint year

8.22.1.1.1.5  (10-01-2012)
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 with a feature code "DP" :

    1. OIC

    2. ABINT

    3. Innocent Spouse

    4. Liability Issues

  2. Hearing officers will transmit 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, LIABILITY) workunit with feature code = DP" and in the NOTE field list the XREF with the 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.

    Note:

    Both the newly created WUNO and the original CDP WUNO should cross reference each other in the NOTE field and have "DP" in the feature code field.

  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  (10-01-2012)
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 = The date the Form 656 was received by the Service (date stamp in upper right hand portion). The TIPRA statute will be two years from this date.

    2. RECDATE = The date the hearing officer's request for a new CDP/OIC WUNO was received in the APS function.

      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.

    3. ASGNDATE = The date the new CDP/OIC WUNO was assigned to the hearing officer.

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

    5. Cross-reference the related CDP WUNO in the NOTE field.

    6. Add "DP" in the feature code field and if the OIC is a DATL, add an additional "LI" feature code.

  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. STATDATE = The REQAPPL date + two years. Input this date for every OIC tax period.

    3. Statute CODE = "TIPRA" Input this code for every OIC tax period.

      Note:

      TIPRA is the statute code used to monitor the 2-year mandatory TIPRA acceptance date.

8.22.1.1.1.5.2  (10-01-2012)
ABINT

  1. The hearing officer must first determine that interest abatement has been properly raised before the ABINT WUNO can be created.

  2. Use the following dates for carding-in purposes:

    1. REQAPPL = The date the hearing officer determined that interest abatement could be raised (hearing officers are instructed to supply this date on the ACDS Update Request form).

    2. RECDATE = The date APS function received the request to create an ABINT WUNO.

    3. ASGNDATE = The date ABINT WUNO was assigned to the hearing officer.

    4. Cross-reference the related CDP WUNO in the NOTE field.

    5. Add "DP" in the feature code field.

8.22.1.1.1.5.3  (10-01-2012)
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 following dates for carding-in purposes:

    1. REQAPPL = The date CCISO's determination is received in Appeals (hearing officers are instructed to supply this date on the ACDS Update Request form).

    2. RECDATE = The date the APS function received the request to create the IS WUNO.

    3. ASGNDATE = The date IS WUNO was assigned to the hearing officer.

    4. Cross-reference the related CDP WUNO in the NOTE field.

    5. Add "DP" and "SD" in the feature code field.

  3. When a spouse files for IS relief, CCISO mirrors joint liabilities for the years in dispute, resulting in two MFT 31 modules that reflect each individual’s:

    • Separate tax liability under each spouse’s separate Social Security Number

    • Collection Statute Expiration Date (CSED)

    • Assessment Statute Expiration Date (ASED)

  4. Hearing officers will request that APS update ACDS and CDPTS to ensure that these systems reflect the same information that is on IDRS. See IRM 8.22.8.10.2 (4) for a listing of possible actions APS must take when updating a CDP IS case.

8.22.1.1.1.5.4  (10-01-2012)
Liability Issues

  1. Hearing officers will determine if taxpayers can raise a liability issue in CDP or EH cases.

  2. If the hearing officer determines that a liability issue can be raised, a new WUNO will be established. Hearing officers will inform APS of the case Type and Feature Code needed based upon the following information:

    Issue Case Type Feature Code
    Innocent Spouse after CCISO makes preliminary determination: I SD, DP
    Income Tax or other Exam-related issue I DP
    Penalties:
    • Failure to File

    • Failure to Pay

    • Deposit Penalties

    • Estimated Tax

    PENAP DP
    Penalties:
    • 6700

    • 6701

    • 6702(a)

    • 6702(b)

    • 6707A

    6700, 6701, 6702, 6707, 6707A See ACDS UTILITIES for a listing of TYPE codes and IRM exhibit 8.20.3-1 DP
    Interest abatement ABINT DP
    Payroll liabilities assessed under IRC 6020(b) procedures EMPL DP
    Trust Fund Recovery Penalty TFRP DP
  3. In the NOTE field, APS will cross-reference the CDP WUNO. APS will also cross-reference the newly created liability WUNO in the CDP NOTE field.

  4. Use the following dates for carding-in purposes:

    • REQAPPL = The date the hearing officer determined the liability could be raised (hearing officers are instructed to supply this date on the ACDS Update Request form).

    • RECDATE = The date the APS function received the request to create a Liability WUNO.

    • ASGNDATE = The date the WUNO was assigned to a hearing officer.

8.22.1.1.2  (10-01-2012)
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 Holding Tank by TIN when carding-in ACS and ICS CDP cases.

  3. eCase automatically transfers specific data fields to ACDS.

    Note:

    Cases with MFT 52 for Estate tax returns (Form 706) use 000000 for the tax year field, not the date of death of the taxpayer.

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

    1. Verify entity information via IDRS cc INOLES and ENMOD.

    2. Compare the IDRS address information with Form 12153-A / Form 12153-B and use the most recent address.

  5. ACDS carding-in procedures:

    Code Source/Action
    TP Name eCase and/or Form 12153-A / Form 12153-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 /Form 12153-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 /Form 12153-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 in the "NOTE" field that the secondary spouse requested the hearing.

    TIN TYPE eCase and/or Form 12153-A / Form 12153-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 /Form 12153-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 (6) below for linking criteria.

    TYPE Form 12153-A /Form 12153-B:
    • DPLN (lien)

    • DPLV (levy)

    • DPL2 (joint lien and levy)

    FEATRCD
    • 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 for Rapid Response Appeals Process (RRAP) cases

    • 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 /Form 12153-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. The ACDS Utilities Menu has an active listing of PBCs as well as IRM 8.20.3.3.56.5.1 Additionally, the following are remote ACS call sites with their associated campus operation: Buffalo (Andover 190); Denver (Ogden 298); Des Moines (Memphis 297); Detroit (Cincinnati 296); Jacksonville (Atlanta 191); Nashville (Memphis 297); Oakland (Ogden 298); Puerto Rico (Austin 192); Seattle (Fresno 193).
    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
    TAX PERIOD eCase and/or Form 12153-A /Form 12153-B: Enter all tax periods listed on Form 12153-A /Form 12153-B. A tax period modifier, N (no return)..
    STATDATE Form 12153-A /Form 12153-B:
    1. Leave blank for CDP

    2. Enter earliest CSED for EH or RJ periods. When there are multiple tax periods, only enter the earliest CSED once and in the first tax period field. The remaining periods will be left blank.

    STATCODE
    • 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 when you link MFTs within a WUNO:

    REQAPPL

    RECDATE

    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 RECDATE date. This case should, instead, be created as a DPL2. Do not link a CDP case with an EH case. Separate WUNOs are required. See IRM 8.22.1.1.1.4.

8.22.1.1.2.1  (10-01-2012)
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

  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

    RECDATE = 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). See IRM 8.22.1.1.2 (5)

  3. Link MFTs on the same entity.

  4. Do not link IMF and BMF.

8.22.1.1.2.2  (10-01-2012)
CDP/EH Cases with Special Card-In Requirements

  1. Some CDP or EH cases require special entries when they are carded-in. The following types of CDP/EH cases require special entries:

8.22.1.1.2.2.1  (10-01-2012)
Son of Boss Cases

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

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

    1. Location Field 8 (LOC 8) = SOB

    2. NOTE field- input "Son of Boss Tax Shelter"

  3. If the hearing officer identifies a CDP case as involving a SOB liability subsequent to assignment, the hearing officer will request that APS input "SOB" to the LOC 8 field and the notation "Son of BOSS Tax Shelter" in the NOTE field.

  4. If the hearing officer determines the taxpayer is not barred from challenging a SOB liability in CDP, the hearing officer will request that APS establish a separate WUNO for consideration of the liability issue. The hearing officer will provide APS with the following:

    • A copy of the CDP case summary card noted at the top "Create a separate WUNO with feature code "DP" and with the note "XREF (WUNO of related CDP)" .

    • The correct case Type, according to the issue.

    • The date Appeals determined the SOB liability is eligible for consideration in the CDP hearing. Use this date for the REQAPPL date. Use the date the hearing officer's request for the SOB WUNO was received in the APS function for the RECDATE date and the ASGNDATE should be the date the SOB WUNO was assigned to the hearing officer.

    • A request that APS enter the notation "SOB" in the LOC 8 field and the notation "Son of BOSS Tax Shelter" in the NOTE field of the newly created WUNO.

  5. Create the requested WUNO within three work days and return the newly created WUNO to the requesting hearing officer.

8.22.1.1.2.2.2  (10-01-2012)
Rapid Response Appeals Process (RRAP)

  1. The Rapid Response Appeals Process (RRAP) is a redefinition of what constitutes a pyramiding in-business trust fund (IBTF) taxpayer. RRAP provides priority procedures for cases identified as pyramiding in-business trust fund Collection Due Process (CDP) cases in Appeals. Only those cases which meet certain criteria qualify for the RRAP process.

  2. Appeals will not identify a case as a pyramiding "PY" or a "RRAP" case once it is received in Appeals through a routine CDP transmittal. For a case to be considered and worked under priority procedures as a pyramiding in-business trust fund taxpayer, the case must be identified by the RO prior to the transmittal of the case to Appeals. It must be forwarded to Appeals using the RRAP procedures below.

  3. After approval by the RO's manager, the digitized case documents should be forwarded to the appropriate Appeals Technical Coordinator via encrypted email. A courtesy copy will also be sent to the appropriate Appeals RRAP APS Coordinator. The RO will email the documents within forty-five days of the receipt of the CDP request.

  4. Collection areas will send RRAP cases via encrypted email to the RRAP Technical Coordinators and the APS Coordinators as follows:

    1. Cases from the following SBSE areas will be sent to the RRAP Technical Coordinator East, and RRAP APS Coordinator East

      North Atlantic Area
      South Atlantic Area
      Central Area
      Gulf Area states of Georgia, Alabama, Mississippi, Tennessee, and Louisiana
      Midwest Area state of Indiana

    2. Cases from the following SBSE areas will be sent to the RRAP Technical Coordinator West and RRAP APS Coordinator West

      California Area
      Western Area
      Gulf Area states of Oklahoma, Texas, and Arkansas
      Midwest Area states of North Dakota, South Dakota, Nebraska, Kansas, Missouri, Minnesota, Iowa, Wisconsin, and Illinois

    3. The email addresses of the RRAP coordinators can be found on the case routing link located at the Appeals home page.

  5. The email subject line should contain "CDP IBTF RRAP Case - XXXX" . The XXXX reflects the case name control.

  6. Account and Processing Support Support Section (APS):

    • The Processing Team Manager (PTM) will email the case to a Tax Examiner (TE) who will card-in the digitized CDP hearing request within one business day of receipt

    • The TE will:

      Add feature code "PY" to indicate an IBTF pyramiding taxpayer
      Add "RRAP" to the LOC 7 field

      Note:

      The only CDP cases that should have a "PY" feature code are cases that are identified as being either a DETL or a RRAP case.

    • The PTM will inform the Appeals RRAP Technical Coordinator by email that the case has been carded-in and is ready for assignment

  7. After the PTM has informed the Appeals RRAP Technical Coordinator ATM by email that the case has been carded-in, the ATM will assign the case to a hearing officer within five (5) business days.

8.22.1.1.2.2.3  (10-01-2012)

Limited Liability Corporations (LLC)

  1. Collection will identify LLC cases on the Form 12153-A / Form 12153-B. LLC cases are discussed in more detail in IRM 8.22.6.6 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, the hearing officer may later determine that the LLC is a disregarded single member entity. The hearing officer will complete an ACDS update form and submit it to APS for action. APS will make the following additions to the CSC:

    1. Add the single member name to the name line of the ACDS entity section after or below the LLC name, for example: xxxxx LLC, xxx xxxxx, owner

    2. Add the single member SSN to the TIN2 field

    3. Cross reference any additional WUNOs that are created due to the type of tax and the entity that is responsible to pay it. This info will be provided by the hearing officer.

8.22.1.1.2.3  (10-01-2012)
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. Email 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)

    You can find the correct email address on OUTLOOK

  4. An APS employee will be assigned the "ACDS Update Request Form" within 24 hours of receipt. APS will email 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  (10-01-2012)
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 11 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.

    Stage Title Stage Title
    1 Receipt of Hearing Request 2 Front End Processing (ACS)
    3 Transferred To Appeals 4 Received By Appeals
    7 Appeals Decision Reached 8 Tax Court Petition Date
    9 Tax Court Decision Date 12 Resolved Prior to Appeals Consideration
    13 Appeals Case Closed - Sent to Collection 14 Closed Case Received in Collection
    24 Closing Actions Taken by Collection (if applicable)    
  3. APS is responsible for updating the following stages:

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

      Note:

      If Stage 3 is not input by field collection or ACS, the case can be updated to Stage 4 from Stage 1.

      Note:

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

      Note:

      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.

    2. Stage 7 - Appeals Decision Reached - Update to Stage 7 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 the letter issued in a CDP/EH case does not require monitoring, Stage 7 and Stage 13 will have the same date.

      Note:

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

  4. APS is also responsible for inputting all CDPTS updates received from hearing officers while the case is in Appeals' jurisdiction. These updates can include:

    1. Changing a case TYPE from a CDP to an EH or vice versa.

    2. Changing a case TYPE from a lien to a levy or vice versa.

    3. Removing tax periods that do not qualify for a hearing.

    4. Updating MFT 30 modules by replacing them with MFT 31 modules with all of the appropriate 520/521 postings when the Service has mirrored a taxpayer account. See IRM 8.22.8.10.2(4) for what can be required for IS cases.

    5. Adding tax periods that qualify for a hearing by inputting Stage 1 on the CDPTS and then updating it to Stage 4. Appeals does not need to contact Collection to add missing periods or to place a case into Stage 3. APS should not return a CDP case to Collection as a premature referral because all of the periods are not present on CDPTS.

      Note:

      Any period added to CDPTS must be added to ACDS and have the appropriate TC 520 added to IDRS.

  5. See IRM 5.1.9 and IRM 8.22.4.7 for additional information on the CDP Tracking System.

8.22.1.2  (10-01-2012)
Interim Processes

  1. There are many interim processes that may take place after the hearing officer receives a CDP/EH hearing request and 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, ABINT or LIABILITY WUNOs - See IRM 8.22.1.1.1.5.1, IRM 8.22.1.1.1.5.2, IRM 8.22.1.1.1.5.3 and IRM 8.22.1.1.1.5.4.

    3. Abatement of interest, penalty or tax

    4. Credit transfer

8.22.1.2.1  (10-01-2012)
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, Courtesy Investigation, or Form 10467, Appeals Division Feedback Report and Transmittal Memorandum, for this purpose.

  2. Hearing officers issue ARIs for 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 send an encrypted email to their servicing APS office with a copy of the ARI request so that ACDS can be updated.

  4. Upon receipt of the email, 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

8.22.1.2.2  (10-01-2012)
Interim Adjustments

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

  2. Hearing officers will generally prepare adjustment requests 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 officer's ATM, who will ensure the need for the interim action.

  3. Hearing officers will email, fax, or hand-carry all interim adjustment requests to their servicing APS CDP campus units at either Brookhaven, Fresno, Memphis or Philadelphia.

    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, that their interim adjustment has been processed. If there are inaccuracies with the adjustment request, APS will attempt to rectify the discrepancy with the initiator in the most time efficient manner, elevating any unresolved issues to the PTM / ATM level if need be.

8.22.1.3  (10-01-2012)
Closing Letters

  1. A closing letter will be prepared for most CDP and Equivalent Hearing closing. The type of letter and 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 and CDPTD.

  2. Information on the type and purpose of most closing letters is also contained in IRM 8.22.9.7.

8.22.1.3.1  (10-01-2012)
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.

      Note:

      Case files will be transmitted to APS accompanied by Form 13929, Bankruptcy Resolution Transmittal Memorandum-CDP Cases. This transmittal contains instructions for APS on how to issue the L4299. The L4299 will be issued by the APS office that issues NODs for the hearing officer. If a response is received from the taxpayer, the hearing officer will request the file back from APS. If there is no response from the taxpayer within the suspense period, the case will be closed by the back-end CDP APS units like a normal defaulted NOD case. The back-end APS units will send a copy of the Form L4299 to the Insolvency unit listed in the Form 13929.

    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. Place 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 on 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 postmarked with the same date that is on the Notice of Determination.

      Caution:

      APS must be aware of local mail room requirements regarding postmark dates to ensure that the postmark and letter dates are the same.

    • 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 postmarked with the same date that is on the Notice of Determination.

    • 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 postmarked with the same date that is on the Notice of Determination

    • 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  (10-01-2012)
CDP Cases Remanded by the U.S. Tax Court and 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 Letter 3978 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 email APS with their assignment information and APS will take the following action:

    1. Input interim closing code 42 "Remanded Case" . This will change the case from PART 3 (Counsel jurisdiction) to PART 2 (Appeals jurisdiction) on ACDS.

    2. Input "REMAND" in the LOC 3 field.

  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. Input interim closing code 43, Petitioned Case. This will return the case to PART 3 (Counsel jurisdiction) on ACDS

    2. 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 8.22.9.19.

8.22.1.3.3  (10-01-2012)
CDP/Equivalent Hearing: Disregarded Hearing Letter

  1. When issuing a Letter 4381, follow established procedures for issuing a notice of determination or a decision letter. See IRM 8.22.5.5.3 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 case is closed with closing code 13.

  9. Return the entire case file to the field or ACS when 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 Letter 4830, Letter 3846, Letter 4381

8.22.1.3.4  (10-01-2012)
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.

      Note:

      Hearing officers will issue Letter 4300 themselves and send a copy to the Insolvency unit assigned the case. APS does not need to issue this letter to the taxpayer. The hearing officer will retain the case file in inventory for thirty days. Once all issues have been resolved, the case will be submitted to APS for closing. APS does not need to issue any letters. This will be annotated on the Form 5402 by the hearing officer.

    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 CDP Back-End Campus offices.

  3. Combination EH and Innocent Spouse or EH and Abatement of Interest claim (Letter 4440 and Letter 4439) are processed by Campus back-end 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 unless it has been chosen for AQMS review.

    Caution:

    If the EH WUNO is closed separate from the CDP WUNO, copy a complete set of documents and place it with the CDP WUNO.

  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 (Letter 4439 and Letter 4440) will be sent by certified mail.

  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 Letter 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

  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  (10-01-2012)
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 Account and Processing Support 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  (10-01-2012)
CDP/EH OIC Acceptance Letter

  1. Hearing officers will prepare the OIC acceptance Letter 673 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  (10-01-2012)
Form 12257 Waiver Closing Letter

  1. Hearing officers will prepare closing Letter 4382 if they secure a Form 12257 Waiver.

  2. The closing letter requires the ATM or hearing officer's signature.

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

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

  5. Send separate letters to joint taxpayers who are not living at the same address and enclose Form 12257 with each.

8.22.1.3.8  (10-01-2012)
Retained Jurisdiction Closing Letter

  1. Hearing officers will prepare an Appeals Case Memorandum and a CAP type 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  (10-01-2012)
Procedures for Closing CDPTD (Separate Timeliness Determination) Cases

  1. CDPTD cases will not have a closing letter. Appeals does not communicate with the taxpayer regarding 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 Form 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 Form 5402 after case is closed on ACDS.

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

8.22.1.5  (10-01-2012)
Procedures for Determining If the Taxpayer Petitioned Tax Court

  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 to the U.S. Tax Court

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

    3. Defaulting the determination letter

  2. The U.S. Tax Court has sole jurisdiction for CDP NODs.

  3. Office of Chief Counsel provides Appeals with docketed case information via an automated system called TLCATS: The Tax Litigation Counsel Automated Tracking System.

    1. TLCATS - 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 the taxpayer's TIN, review TLCATS using one of the default dates in (4) above..

    1. 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  (10-01-2012)
Procedures for Petitioned Cases - DCJUR

  1. Use "Special Activities Menu" , option 5 "Closing Code 42/43 Update" to update ACDS case/returns screen:

    1. DKTNO = docket number

    2. CLOSINGCD = 43 (This closing code will move the case to Part 3, status E/T)

    3. DATECLSD = date case sent to Counsel

    4. Determination Letter STATDATE= do not delete entry

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

    6. DC OFFICE = enter the local Counsel office

    7. ATTORNEY = attorney's name

  2. Update CDPTS to Stage 8.

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

  4. See IRM 8.22.3.9.1 for procedures to follow after the Tax Court decision is entered and becomes final.

8.22.1.5.2  (10-01-2012)
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

  2. Innocent Spouse WUNO: See IRM 25.15.12.14.2 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  (10-01-2012)
Premature CDP Case Closing on ACDS - Reopening Procedures

  1. Occasionally, the APS DIMS unit (Docket Information Management System) will identify a CDP case on a DIMS listing that was erroneously closed as a default and 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 notify the PTM (of the back-end APS unit that closed the CDP case) that the case has been docketed and the closing should be recalled.

  4. The back-end APS 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 the NOTE field, explain the reason for the recall

  5. The back-end APS 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.

  6. The back-end APS unit will take the necessary steps to locate the administrative file and forward it to Area Counsel.

  7. The back-end APS unit will take responsibility of the recalled CDP case for all actions up to and after the Tax Court decision becomes final. See IRM 8.22.3.


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