IMRS Monthly Overview – August 2016
The Issue Management Resolution System (IMRS) Monthly Overview provides a synopsis of some of the issues received and/or closed by the Issue Management Resolution System staff during the past month. The Monthly Overview informs the public about the work of IMRS and highlights the issues that we think would be of most interest to external stakeholders.
Recently Closed Issues
Policy, Practice, Procedures
IMRS Issue 16-0002130
Issue: Because pension and retirement plans provide for the taxpayer’s future welfare, the IRS should only levy these assets after following certain procedures. One item to consider is a payment agreement. Per its policy on payment agreements, Collection recommends rejection if there's sufficient equity or cash available to fully pay the taxes or to make a significant partial payment of the taxes and the payment is not received by a certain date. Equity in pension and retirement accounts must be considered when making this decision. Could the Service revise its policy and waive the 10 percent penalty when liquidating a retirement account to resolve a delinquent tax account?
Response: IRC 72(t)(2)(A)(vii) provides for a 10 percent additional tax on early distributions from qualified retirement plans except if the money is withdrawn because of a notice of levy served on the retirement account. The IRS can't waive the 10 percent tax, and since it is not a penalty, abatement for reasonable cause doesn't apply. The IRS issued guidance on June 14, 2016, that allows the taxpayer to request a levy on their retirement account. (See IPU 16U1064 issued 06-14-2016 for IRM 126.96.36.199.)
IMRS Issue 16-0002158
Issue: The deputy director of the Wisconsin Department of Revenue notified the IRS that its phone assistors are incorrectly giving Wisconsin taxpayers the general phone number instead of the refund number for checking their state refunds.
Response: The IRS posted an alert for phone assistors to ensure they use the refund number rather than the general number when providing Wisconsin taxpayers the phone number to check their state refunds.
NOTE: The IRS also provides current and previous reports on this site. You can also access reports for issues closed in prior years on the same page. We invite you to raise your issues/concerns with your local stakeholder liaison.