Part 13. Taxpayer Advocate Service

Chapter 1. Taxpayer Advocate Case Procedures

Section 7. Taxpayer Advocate Service (TAS) Case Criteria

13.1.7 Taxpayer Advocate Service (TAS) Case Criteria

Manual Transmittal

September 21, 2021

Purpose

(1) This transmits revised IRM 13.1.7, Taxpayer Advocate Case Processing, Taxpayer Advocate Service (TAS) Case Criteria.

Material Changes

(1) IRM 13.1.7.1 added new section Program Scope and Objectives.

(2) IRM 13.1.7.2 added verbiage to reinforce the statutory provisions that are the basis for our case criteria.

(3) IRM 13.1.7.3.1 added Regulatory and Statutory Authority as it relates to each criteria code.

(4) IRM 13.1.7.3.2 added Regulatory and Statutory Authority as it relates to each criteria code.

(5) IRM 13.1.7.3.2.2 incorporated IPU 21U0932, issued 07-13-2021, updated to clarify criteria 7 acceptance.

(6) IRM 13.1.7.3.3 added Regulatory and Statutory Authority as it relates to each criteria code.

(7) IRM 13.1.7.3.4 added Regulatory and Statutory Authority as it relates to each criteria code.

(8) IRM 13.1.7.4 incorporated IPU 21U0932, issued 07-13-2021, updated to include streamline exceptions to limitations on Taxpayer Advocate Service case criteria and renumbered.

(9) IRM 13.1.7.4(7) incorporated IPU 21U0922, issued 07-08-2021, updated to add TAS case acceptance criteria exception per IGM TAS 13-0721-0009, Interim Guidance - Advance Child Tax Credit.

(10) IRM 13.1.7.4(6) incorporated IPU 21U0728, issued 05-13-2021, updated to include cases involving the exclusion of unemployment compensation received in taxable year 2020 from gross income as an exception to TAS case criteria per IGM TAS-13-0521-0006, Interim Guidance on Exceptions to TAS Case Acceptance Criteria For Taxpayer Issues Related to Unemployment Compensation Received in Taxable Year 2020.

(11) IRM 13.1.7.4(4) incorporated IPU 21U0454, issued 03-23-2021, updated to include ERS Status 100 as an exception to TAS case acceptance.

(12) IRM 13.1.7.4(4) incorporated IPU 21U0394, issued 03-12-2021, updated to clarify TAS case acceptance criteria on ERS cases.

(13) IRM 13.1.7.4(9) incorporated IPU 21U0149, issued 01-26-2021, updated to add TAS case acceptance criteria exceptions per IGM TAS 13-0121-0003, Interim Guidance on Exceptions to TAS Case Acceptance Criteria Taxpayer Issues Solely Related to the Processing of Original and Amended Returns with No Indication of IRS Receipt of the Return.

(14) IRM 13.1.7.4(5) incorporated IPU 21U0149, issued 01-26-2021, updated to add TAS case acceptance criteria exceptions per IGM TAS 13-0121-0001, Interim Guidance on Exclusion from TAS Case Acceptance Criteria Taxpayers Impacted by Pre-Refund Wage Verification Hold and Amended Returns.

(15) IRM 13.1.7.4(10) incorporated IPU 20U0945, issued 08-26-2020, updated guidance for cases not eligible for TAS assistance.

(16) IRM 13.1.7.4(1) incorporated IPU 20U0671 issued 06-04-2020, added guidance for case acceptance of Economic Impact Payment (EIP) issues per TAS-13-0520-0011 Interim Guidance - Economic Impact Payments and TAS Case Acceptance.

(17) IRM 13.1.7.4(1) incorporated IPU 20U0345, issued 03-20-2020, added change to case acceptance criteria for Pre-Refund Wage Verification Hold and Amended Returns.

(18) IRM 13.1.7.5(2) incorporated IPU 21U0100, issued 01-19-2021, updated to remove note allowing case acceptance for EIP refund tracers.

(19) IRM 13.1.7.5(2) incorporated IPU 21U0044, issued 01-05-2021, updated to add note to include case acceptance to EIP refund tracers.

(20) IRM 13.1.7.5 incorporated IPU 20U1268, issued 11-24-2020, updated EIP TAS case acceptance criteria per IGM TAS-13-1120-0018, Interim Guidance - Economic Impact Payments.

(21) IRM 13.1.7.5 incorporated IPU 20U0945, issued 08-26-2020, added new content listing case acceptance criteria for Economic Impact Payment issues.

(22) IRM 13.1.7.6 incorporated IPU 20U0945, issued 08-26-2020, new subsection, content moved from IRM 13.1.7.5.

(23) Exhibit 13.1.7-1 Updated processing times for various issues due to IRM changes.

(24) Exhibit 13.1.7-2 Terms added new exhibit.

(25) Exhibit 13.1.7-3 Acronyms added new exhibit.

(26) Exhibit 13.1.7-4 Case Criteria Crosswalk to 7811 and Regulations added new exhibit.

(27) Minor editorial, grammar, and punctuation changes and updated IRM references.

Effect on Other Documents

IRM 13.1.7, Taxpayer Advocate Case Procedures dated February 5, 2016, superseded. The following IRM Procedural Updates (IPUs) issued from March 2, 2020 through March 23, 2021 have been incorporated into this IRM 20U0345, 20U0671, 20U0945, 20U1268, 21U0044, 21U0100, 21U0149, 21U0394 and 21U0454.

Audience

Primarily Taxpayer Advocate Service Employees.

Effective Date

(09-21-2021)

Bonnie Fuentes
Executive Director Case Advocacy, Intake and Technical Support

13.1.7.1 (09-21-2021)

Program Scope and Objectives

  1. Purpose: This IRM discusses information to consider in determining when a taxpayer meets TAS case criteria to be referred to TAS for resolution and to assist in determining case criteria based on statutory and regulatory authority.

  2. Audience: These procedures apply to all IRS employees when determining when a taxpayer would qualify for TAS assistance.

  3. Policy Owner: The National Taxpayer Advocate (NTA).

  4. Program Owner: The Director, Technical Analysis and Guidance, who reports to (EDCA-ITS).

13.1.7.1.1 (09-21-2021)

Background

  1. TAS has identified criteria that qualify taxpayers for TAS assistance, which includes an independent review by a TAS employee of actions that have been taken or need to be taken to resolve the problems taxpayers are experiencing. TAS Criteria 1-9 reflect situations requiring acceptance of taxpayer cases to be worked by TAS. TAS commonly refers to Criteria 1-4 as “Economic Burden” cases, Criteria 5-7 as “Systemic Burden” cases, Criteria 8 as “Best Interest of the Taxpayer” and Criteria 9 as “Public Policy.”

13.1.7.1.2 (09-21-2021)

Responsibilities

  1. IRS employees working individual taxpayer issues are responsible for determining when a taxpayer’s issue meets criterion for referral to TAS.

  2. TAS employees are responsible for making case acceptance determinations and will take appropriate actions to move a taxpayer’s issue to resolution while taking the taxpayer’s best interests into consideration based on the procedures in this IRM section.

13.1.7.1.3 (09-21-2021)

Authority

  1. Pursuant to IRC 7803(c), the Office of the Taxpayer Advocate (known as the Taxpayer Advocate Service (TAS)) shall assist taxpayers to resolve problems with the IRS.

13.1.7.1.4 (09-21-2021)

Program Reports

  1. Reports to monitor the quality of TAS cases are derived from TAMIS and the TAS Case Quality Review System (CQRS). Monthly, quarterly, and fiscal year cumulative reports as well as drill down reports are available for data analysis.

13.1.7.1.5 (09-21-2021)

Terms

  1. Exhibit 13.1.7-2 contains a list of terms and their definitions used throughout this IRM.

13.1.7.1.6 (09-21-2021)

Acronyms

  1. Exhibit 13.1.7-3 contains a list of acronyms and their definitions used throughout this IRM.

13.1.7.1.7 (09-21-2021)

Related Resources

  1. All related IRM resources are listed in Exhibit 13.1.7-1, General Response Time Guidelines.

  2. Exhibit 13.1.7-4 contains a Crosswalk which matches Case Criteria to IRC 7811 and Treas. Reg. 301-7811-1.

13.1.7.2 (09-21-2021)

Introduction to TAS Case Criteria

  1. Under IRC 7803(c)(2)(C)(ii), the National Taxpayer Advocate has developed case criteria for referring taxpayers to TAS. Those criteria are Criteria 1-9 and are explained in greater detail in this chapter. The case criteria is based in part on IRC 7811 and the corresponding Treasury Regulation dealing with the circumstances in which TAS may issue a Taxpayer Assistance Order (TAO). Although case criteria and significant hardship for purposes of a TAO are not always the same, they are nonetheless very closely aligned. A detailed crosswalk is in Exhibit 13.1.7-4. Keep in mind that TAS’s ability to assist taxpayers is much broader than the circumstances which qualify for a TAO.

  2. TAS Case Criteria should not be viewed as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief. Similarly, as discussed in IRM 13.1.20, TAS Taxpayer Assistance Order (TAO), the criteria under which TAS accepts a case does not govern whether TAS can issue a TAO.

  3. Taxpayers do not need to validate their hardship to be accepted into the TAS program. TAS employees may need to document the hardship in the course of developing the case and determining what relief is appropriate.

13.1.7.3 (09-21-2021)

TAS Case Criteria

  1. As an independent organization within the IRS, TAS helps taxpayers resolve problems with the IRS and recommends changes to prevent future problems. TAS fulfills its statutory mission by working with taxpayers to resolve problems with the IRS. TAS case acceptance criteria fall into four main categories:

  2. Economic Burden - Economic burden cases are those involving a financial difficulty to the taxpayer: an IRS action or inaction has caused or will cause negative financial consequences or have a long-term adverse impact on the taxpayer.

    • Criteria 1: The taxpayer is experiencing economic harm or is about to suffer economic harm.

    • Criteria 2: The taxpayer is facing an immediate threat of adverse action.

    • Criteria 3: The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).

    • Criteria 4: The taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted.

     

  3. Systemic Burden - Systemic burden cases are those in which an IRS process, system, or procedure has failed to operate as intended, and as a result the IRS has failed to timely respond to or resolve a taxpayer’s issue.

    • Criteria 5: The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.

    • Criteria 6: The taxpayer has not received a response or resolution to the problem or inquiry by the date promised.

    • Criteria 7: A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer’s problem or dispute within the IRS.

     

  4. Best Interest of the Taxpayer - TAS acceptance of these cases will help ensure that taxpayers receive fair and equitable treatment and that their rights as taxpayers are protected.

    • Criteria 8: The manner in which the tax laws are being administered raises considerations of equity, or has impaired or will impair the taxpayer’s rights.

     

  5. Public Policy - Acceptance of cases into TAS under this category will be determined by the NTA and will generally be based on a unique set of circumstances warranting assistance to certain taxpayers.

    • Criteria 9: The National Taxpayer Advocate determines compelling public policy warrants assistance to an individual or group of taxpayers.

13.1.7.3.1 (09-21-2021)

TAS Case Criteria 1–4, Economic Burden

  1. Criteria 1 – Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1, the taxpayer is experiencing economic harm or is about to suffer economic harm. The economic harm may be the result of actions by the IRS or created because of circumstances in the taxpayer’s personal life.

    IRC 7811(a)(2)(A), (C), and (D) outline three examples of significant hardship that are categorized below as Case Criteria 2, 3 and 4. Economic harm situations that require TAS’s assistance but do not fall under these criteria will be captured under Case Criteria 1.

    Note:

    Be careful not to confuse "economic harm" with "economic hardship." The term "economic hardship" has significance in the context of IRC 6343, Authority to release levy and return property.

    Example:

    A taxpayer’s return has been selected for examination based on the claim for Earned Income Tax Credit (EITC). The taxpayer is expecting a $3,000 refund but cannot wait for the completion of the examination, as the taxpayer has a serious medical condition and no health insurance. She needs the money to pay for prescription drugs and nonelective surgery. This case should be accepted into the TAS program as a Criteria 1 case.

  2. Criteria 2 -- Per IRC 7811(a)(2)(A) and Treas. Reg. 301.7811-1(a)(4)(ii)(A), the taxpayer is facing an immediate threat of adverse action. Most situations will involve an action by the IRS, such as filing a Notice of Federal Tax Lien, serving a Notice of Levy, or seizing property.
    Threat of adverse actions can also involve the taxpayer’s personal situations, such as utility cutoffs or evictions. Such actions may result in negative financial consequences or economic burden to the taxpayer. A warning of impending action that will negatively impact the taxpayer is considered a "threat" . An immediate threat is defined as an action that will take place in the very near future.

    Example:

    On June 15, the taxpayer came to TAS with an eviction notice stating that he will be evicted on July 1 if his rent is not paid. The taxpayer is awaiting a refund of $2,000 on his Form 1040 income tax return. This refund will pay in full his arrearage, thus preventing the eviction. This case would be accepted into the TAS program as a Criteria 2 case because the threat of adverse action exists (the eviction notice), and the threat is immediate (15 days).

  3. Criteria 3 -- Per IRC 7811(a)(2)(C) and Treas. Reg. 301.7811-1(a)(4)(ii)(C), the taxpayer will incur significant costs if relief is not granted (including fees for professional representation). Situations where the IRS is unable to immediately make adjustments, process returns, release a lien, etc., could result in the taxpayer having to incur significant costs. Significant costs could include professional fees for representation.

    Note:

    The Local Taxpayer Advocate (LTA) will determine what constitutes significant costs based on the facts and circumstances of each case.

    Example:

    The IRS sends a corporation a notice requesting payment of an outstanding balance of employment taxes and penalties owed by the business. The notice indicates that the business has employment tax balances with respect to 12 employment tax quarters totaling $10,000. The business provides documentation to the IRS, which contends that if all payments were correctly applied to each quarter, there would be no balance due. The IRS requests additional records and documentation. Because there are 12 quarters involved, to comply with this request the business asserts that it will need to hire an accountant, who estimates he will charge at least $5,000 to organize all the records and provide a detailed analysis of how to apply the deposits and payments. The business is facing significant costs.

  4. Criteria 4 -- IRC 7811(a)(2)(D) and Treas. Reg. 301.7811-1(a)(4)(ii)(D), the taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted. This includes situations where a taxpayer may lose assets, income, or potential income if relief is not provided. Some situations include loss of the ability to be licensed or bonded as part of the taxpayer’s occupation, or loss of borrowing power or clients due to filing of a Notice of Federal Tax Lien. Other situations may involve damage to credit ratings resulting in denial of a loan.

    Example:

    The taxpayer has a lien on his property due to an outstanding tax liability. He is trying to refinance his mortgage, which would result in a lower monthly payment and would allow him to pay his outstanding tax liability. He has filed an amended return which would eliminate the tax liability. The amended return has been selected for examination, but no action has been taken. This case should be accepted into the TAS program as a Criteria 4 case.

13.1.7.3.2 (09-21-2021)

TAS Case Criteria 5 – 7, Systemic Burden

  1. Criteria 5 -- Per IRC 7811(a)(2)(B) and Treas. Reg. 301.7811-1(a)(4)(ii)(B) and (iii), the taxpayer has experienced a delay of more than 30 days to resolve a tax account problem. See also Treas. Reg. 301.7811-1(a)(4)(iv) Example 2.

    1. Where there is an established time frame for a specific action based on an IRM, IRS form, or other official document, Criteria 5 is met when the problem or inquiry is delayed more than 30 days beyond the normal response time for the particular action. Refer to Exhibit 13.1.7-1, General Response Time Guidelines, for established normal response times on various (not inclusive) issues.

      Example:

      A taxpayer files an individual income tax return with a Schedule C claiming business expenses. The taxpayer received a notice ten months ago that the return was selected for examination and provided the requested documentation. The taxpayer has received no further contact from the IRS which is a delay of more than 30 days beyond normal response time.

       

    2. Where there is no established time frame for a specific action based on an IRM, IRS form, or other official document, Criteria 5 is met when the problem or inquiry is delayed more than 30 days after the initial date the taxpayer made a request for IRS assistance.

      Example:

      A taxpayer received an examination determination from a revenue agent. On January 10, the taxpayer wrote to the IRS, requesting an interest calculation so she could pay her account in full. On March 1, the taxpayer contacts TAS for the interest calculation because she has not received a response to her letter. Since more than 30 days have passed from January 10, Criteria 5 is met.

       

    3. Criteria 5 is met when the IRS sends multiple interim responses and no other actions by the IRS have been taken. Interim letters can extend prescribed time frames unless the delay is extensive or unreasonable. Judgment should be used to determine if the operating division or function’s delay is justified or whether it is an unwarranted delay.

      Example:

      A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty on June 12. The taxpayer receives a response from the IRS on July 1, acknowledging receipt of his letter and informing him that it will be another 30 days before his inquiry can be answered. On July 27, the taxpayer receives another IRS letter stating that it will take an additional eight weeks for a reply. The TAS employee checks IDRS information and no action has been taken by the IRS on the taxpayer’s account other than sending the second interim correspondence. The taxpayer’s circumstances meet Criteria 5.

       

    4. Delays due to taxpayer unresponsiveness will not meet Criteria 5.

      Example:

      A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty on June 12. The taxpayer receives a response from the IRS on July 1, acknowledging receipt of his letter and requesting additional information by July 12 to abate the penalty. On July 27, the taxpayer receives another IRS letter with a second request for information. The taxpayer has not submitted any information for consideration. The taxpayer contacts TAS for assistance on August 1, stating the penalty has not been abated. The TAS employee checks IDRS and determines from the history items that multiple requests for information were sent to the taxpayer. The TAS employee asks if the taxpayer has received any contact from the IRS. The taxpayer states he did receive a request for more information but has not mailed it in. This circumstance does not meet Criteria 5. However, TAS should still explain to the taxpayer what information the IRS, in general, needs to make a penalty abatement.

       

  2. Criteria 6 -- Per IRC 7811(a)(1)(B) and Treas. Reg 301.7811-1(a)(4)(ii), the taxpayer has not received a response or resolution to the problem or inquiry by the date promised.

    Example:

    The taxpayer has been in contact with the Correspondence Examination unit at an IRS campus because of alleged unreported income. The tax examiner requested substantiation of the taxpayer’s basis of some stock transactions. The taxpayer sent the information five weeks ago. The taxpayer received IRS correspondence acknowledging receipt of the information. The IRS correspondence also indicated that a determination would be made and the taxpayer would be contacted by March 5. On March 7, the taxpayer contacts the NTA toll-free number for assistance. The inquiry is accepted into TAS as a Criteria 6 case because the taxpayer was not contacted by the promised date of March 5.

  3. Criteria 7 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii), a system or procedure has either failed to operate as intended or failed to resolve the taxpayer’s problem or dispute within the IRS.

    1. When a taxpayer specifically requests TAS assistance and no other case criteria is met, accept the case under Case Criteria 7. These cases meet TAS criteria because the taxpayer’s hesitance or unwillingness to work within the IRS structure to resolve his or her problem is an indication of a systemic failure. Document the conversation in the TAMIS history.

    2. The following are examples of when an inquiry meets criteria 7:

    Example:

    The IRS examined a taxpayer’s return in a prior year for EITC and subsequently allowed the credit. The taxpayer filed her subsequent year return and the IRS failed to issue her refund. The taxpayer contacts TAS for assistance. TAS determines the refund was held because the IDRS transaction code 810 indicator was never reversed, as it should have been. The taxpayer’s circumstances meet Criteria 7 because the IRS’s procedures for releasing a refund freeze failed to operate as intended.

    Example:

    A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty and requests a credit elect to the next quarter. The IRS abates the penalty, but the overpayment has not been credited to the next quarter. The taxpayer’s circumstances meet Criteria 7 because the IRS’s procedures for crediting overpayments failed to operate as intended.

    Reminder:

    See IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria, before accepting a case under Systemic Burden.

13.1.7.3.3 (09-21-2021)

TAS Case Criteria 8, Best Interest of the Taxpayer

  1. Criteria 8 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii); TBOR, the manner in which the tax laws are being administered raise considerations of equity or has impaired or will impair the taxpayer’s rights. Although many TAS cases may generally involve equity considerations or impair taxpayer rights, Case Criteria 8 should only be used if the case does not fit into any other TAS case criteria. Thus, if a case can be accepted into any other case criteria (1 – 7 or 9), the case should not be accepted under Case Criteria 8.

     

    Example:

    You receive a Congressional inquiry on behalf of a constituent regarding their 2018 balance. The account is not in a collection status and the taxpayer is on an installment agreement. The taxpayer contacted the IRS directly but does not feel that they were given fair and equitable treatment and the payment amount they were given is too high for their income level. The Congressional office is requesting that TAS assist with this issue and review the payment arrangement.

    Note:

    RRA ’98 1203(b)(3) addresses violations of taxpayers' constitutional or civil rights by an IRS employee. The Treasury Inspector General for Tax Administration (TIGTA) has responsibility for investigating such alleged violations. If you believe a taxpayer's constitutional or civil rights were violated by an IRS employee, please refer to IRM 13.1.15, Customer Complaints / RRA 98 Section 1203 Procedures.

  2. Looking at the significant hardship requirement in IRC 7811 may be useful in making a Criteria 8 determination. Section 7811 provides “the National Taxpayer Advocate may issue a Taxpayer Assistance Order if the National Taxpayer Advocate determines the taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the Secretary. “ Treas. Reg. 301.7811-1(a)(4), further explains that significant hardship means “a serious privation is caused or about to be caused to the taxpayer as the result of the particular manner in which the revenue laws are being administered by the IRS.” Thus, if a taxpayer is experiencing or about to experience a serious privation of taxpayer rights, then the case meets Criteria 8.
    In considering whether a taxpayer is experiencing or about to experience a serious privation of taxpayer rights, consider whether any of the taxpayer’s rights have been impaired. See IRM 13.1.2.2.1 , Taxpayer Bill of Rights (TBOR).
    If any of these rights have been impaired and no other case criteria fits, it would be appropriate to accept the case under Criteria 8. If no rights have been impaired, next consider the equities. If the action the IRS is taking is not equitable, a case can also be classified as Criteria 8.

13.1.7.3.4 (09-21-2021)

TAS Case Criteria 9, TAS Public Policy

  1. Criteria 9 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii), the NTA determines compelling public policy warrants assistance to an individual or group of taxpayers. The NTA has the sole authority for determining which issues are included in this criterion and will so designate by memo.

     

    Example:

    The NTA determined inquiries related to organizations where the IRS automatically revoked their tax-exempt status because the organization did not file an annual return or notice for three consecutive years met this criteria.

     

    Note:

    Criteria 9 should only be used when the taxpayer’s case does not fit within any other criteria.

  2. TAS issues interim guidance at least once every two years on case issues authorized for acceptance under Criteria 9. See e.g., IGM TAS-13-0721-0008, Accepting Cases Under TAS Case Criteria 9, Public Policy.

13.1.7.4 (09-21-2021)

Exceptions to Taxpayer Advocate Service Criteria

  1. There are certain cases that should not be accepted into TAS:

  2. The taxpayer’s complaint or inquiry only questions the constitutionality of the tax system:

  3. The focus of the taxpayer’s inquiry solely involves frivolous tax strategies intended to avoid or delay the filing or paying of federal taxes:

  4. As of January 15, 2021, per TAS-13-0121-0001, Interim Guidance on Exclusion from TAS Case Acceptance Criteria Taxpayers Impacted by Pre-Refund Wage Verification Hold and Amended Returns, TAS will not accept filing season 2021 Pre-Refund Wage Verification Hold (PRWVH) cases until April 15, 2021. However, TAS will continue accepting those PRWVH cases that otherwise meet case acceptance criteria:

    If the Inquiry Then
    Is received from a Congressional Office where the taxpayer’s refund has been stopped by a Refund Integrity Verification Operation (RIVO) filter beginning March 5, 2021. TAS will accept the case.
    These cases will be coded in TAMIS as Criteria 9 even if they may also qualify under Criteria 1 through 8.
    Involves an Offset Bypass Refund (OBR). TAS will accept the case.
    See IRM 13.1.24.6.2, Advocating for Taxpayers Seeking Offset Bypass Refunds.
    Involves returns for prior tax years (i.e., for tax years before 2020) if the return was filed before the current filing season. In these situations, the return would be held over from prior year’s processing refund freezes. TAS will accept the case.

    Note:

    If the prior year return was recently filed (after January 1, 2021) the limitations on case acceptance will apply.

  5. IRS and TAS will refer taxpayer meeting TAS criteria 5-7 (systemic burden) who seek assistance with an identity theft issue to the Accounts Management Identity Protection Specialized Unit (IPSU). See IRM 25.23.3.2.6, Identity Theft Assistance Request (ITAR) - General Information, and IRM 13.1.16.15.1, IPSU Referral Procedures:

  6. TAS will generally not accept the following types of inquires involving the Processing of Original Returns (Issue Code (IC) 310, Unpostable/Rejected Returns (IC 315), Processing of Amended Returns (IC 330), and Injured Spouse Claims (IC 340) that fall within Systemic Burden Criteria 5-7:

    1. In these four categories of cases, processing delays typically arise either because the affected functions are overloaded with work or because of systemic processing glitches. Assuming these processing delays do not create an economic burden, TAS’s role is typically limited to issuing an Operations Assistance Request (OAR) to the appropriate function to advocate for resolution of the taxpayer’s problem, providing updates to taxpayers, and looking for patterns of delay to identify systemic problems.

    2. There are two notable exceptions under which TAS will continue to accept Systemic Burden cases involving the four categories identified above. The first exception is for cases received from a Congressional Office, see TAS-13-0721-0008, Interim Guidance on Accepting Cases Under TAS Case Criteria 9, Public Policy. The second exception is for cases related to other issues for which TAS may advocate, such as an open examination or collection action that a refund from, or the processing of, the amended or original return or claim would resolve.

    3. The following examples illustrate these guidelines:

      Example:

      Single-Issue Systemic Burden Inquiry:


      Facts: The normal processing time for a Form 1040-X, Amended U.S. Individual Income Tax Return, is approximately eight to 12 weeks. The taxpayer filed 2020 Form 1040-X more than four months ago expecting a refund and has no other outstanding issues with examination or collection. Because of the IRS delay in processing the amended return, the taxpayer’s circumstances meet TAS Criteria 5. Under the new guidelines, refer the taxpayer to the appropriate IRS function for resolution and do not establish a TAS case.

      Example:

      Systemic Burden Inquiry Referred by Congressional Office:


      Assume the same facts as in Example 1, except that the case has been referred by a congressional office. Establish a TAS case.

      Example:

      Systemic Burden Inquiry Affecting Other Tax Issues:


      Assume the same facts as in Example 1, except that the taxpayer has an outstanding balance for tax year 2019 and has been receiving IRS collection notices. The taxpayer’s expected refund would fully pay the balance due and leave the taxpayer with a small refund. Accept the taxpayer’s inquiry and establish a TAS case because facilitating the processing of the amended return will resolve an open collection issue. As of January 19, 2021, TAS will not accept new cases solely related to the processing of original and amended returns where there is no indication of receipt of the return on IRS systems. As of March 11, 2021, TAS will not accept any non-Congressional referrals for a return in ERS Status 900, and as of March 22, 2021, this includes ERS Status 100. ERS Status 100 and 900 cases are not in active ERS inventory and cannot be accessed and worked by TAS or other IRS employees until they are moved to the Status 100 inventory. However, TAS will continue accepting those cases involving the processing of original and amended returns that otherwise meet case acceptance criteria.

  7. As of January 19, 2021, cases identified per TAS-13-0121-0003, Interim Guidance on Exceptions to TAS Case Acceptance Criteria Taxpayer Issues Solely Related to the Processing of Original Acceptance Criteria Taxpayers Issues Solely Related to the Processing of Original and Amended Returns with No Indication of IRS Receipt of the Return. Under this temporary guidance, TAS will not accept new cases solely related to the processing of original and amended returns where there is no indication of receipt of the return on IRS systems. As of March 11, 2021, TAS will not accept any non-Congressional referrals for a return in ERS Status 900, and as of March 22, 2021, this includes ERS Status 100. ERS Status 100 and 900 cases are not in active ERS inventory and cannot be accessed and worked by TAS or other IRS employees. However, TAS will continue accepting those cases involving the processing of original and amended returns that otherwise meet case acceptance criteria. This guidance is summarized below:

    If the inquiry Then
    Is received from a Congressional Office, including ERS Status 100 and 900 cases. TAS will accept the case.
    These cases will be coded in TAMIS as Criteria 9 even if they may also qualify under Criteria 1 through 8.
    Involves an Offset Bypass Refund (OBR). TAS will accept the case.
    See IRM 13.1.24.6.2, Advocating for Taxpayers Seeking Offset Bypass Refunds.
    Involves other issues, such as Collection, that are not dependent on receipt of the return before TAS can begin advocating on the taxpayer’s behalf. TAS will accept the case.
    Is received from any source, other than a Congressional Office, and involves a return that is not showing as received on IDRS. TAS will not accept the case. See IRM 21.4.1.4.1, Locating the Taxpayer’s Return.
    Is received from any source, other than a Congressional Office, and the return is in ERS status 100 or 900. TAS will not accept the case.

  8. As of May 4, 2021, per TAS-13-0521-0006, Interim Guidance on Exceptions to TAS Case Acceptance Criteria For Taxpayer Issues Related to Unemployment Compensation Received in Taxable Year 2020, TAS will generally not accept cases involving the exclusion of unemployment compensation received in taxable year 2020 from gross income per IRC 85(c). However, TAS will continue to accept those unemployment compensation cases that otherwise meet case acceptance criteria:

    If the Inquiry Then
    Involves identity theft where the taxpayer’s inquiry meets TAS case acceptance criteria 1-4, 8 and 9. TAS will accept the case.
    Involves identity theft where the taxpayer’s inquiry meets TAS case acceptance criteria 5-7. TAS will not accept the case, see paragraph (8) below.
    Involves an Offset Bypass Refund (OBR). TAS will accept the case.
    See IRM 13.1.24.6.2.

  9. As of July 2, 2021, per TAS-13-0721-0009, Interim Guidance - Advance Child Tax Credit, TAS will generally not accept stand-alone Advance Child Tax Credit (ACTC) cases. TAS cannot expedite resolution or improve assistance to taxpayers in these situations. However, TAS will accept ACTC cases that also involve other issues meeting normal TAS criteria for which TAS may advocate.

    If the Inquiry Then
    Involves stand-alone ACTC issues including, but not limited to:

    • Unenrollment,

    • Use of the Non-Filer Sign-up Tool,

    • ACTC payment inquiries, or

    • IRS Online Account accessibility, such as IRS username, ID.me, etc.

    		 TAS will not accept the case.
    Involves unresolved account issues per IRM 21.6.3.4.1.24.2(9), Advance CTC, that meet TAS criteria and are postponing ACTC payments. TAS will accept the case.
    Involves ACTC and other issues meeting normal TAS criteria for which TAS may advocate. TAS will accept the case.

  10. For any issue where TAS is not able to directly assist the taxpayer, TAS will:

    1. Educate the taxpayer and direct them to any available IRS resources and provide the appropriate IRS toll-free number, if available;

    2. Use outreach and other forums to gather feedback and improve the IRS’s educational resources and

    3. Identify systemic problems using the Systemic Advocacy Management System (SAMS) and work with the IRS to correct them.

13.1.7.5 (09-21-2021)

TAS Case Criteria for Economic Impact Payment (EIP) Issues

  1. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), created IRC 6428, which provides for a recovery rebate credit (RRC) for eligible individuals. The CARES Act allows for the advanced payment of the RRC (referred to as Economic Impact Payments (EIP)) until December 31, 2020. Taxpayers will report the RRC on their tax year 2020 tax return and reduce the credit by the EIP, if applicable. Refer to IRM 21.6.3.4.2.13, Economic Impact Payments, for IRS guidance on identifying and resolving Economic Impact Payment (EIP) issues.

  2. Beginning November 23, 2020, TAS will not accept new cases involving stand-alone EIP issues, except those referred to TAS by Congressional Offices. For Congressional Offices, TAS will not accept new cases involving stand-alone EIP issues beginning November 24, 2020.

  3. August 10, 2020 through November 23, 2020, TAS accepted cases involving the following EIP issues:

    1. Where the EIP is delayed because of problems stemming from a filed 2019 or 2018 tax return and TAS assistance may result in the systemic release of the EIP. See IRM 21.6.3.4.2.13.1(5), Economic Impact Payments - Account Information, for a list of situations where TAS’s normal casework will systemically release an EIP.

    2. Unresolved lost/missing EIP direct deposit (not returned by the Electronic Originator (ERO), bank, or third-party) and paper checks.

    3. Unresolved Returned/Undeliverable EIP paper checks.

    4. EIP issues where the IRS has established manual adjustment procedures as discussed in IRM 21.6.3.4.2.13.3, Economic Impact Payments - Manual Adjustments, including:
      • Unresolved Math Errors affecting EIP.
      • Resolved Math Errors where the EIP was affected but not corrected based on resolution of the Math Error.
      • EIPs returned in full by the taxpayer (e.g., ineligible, religious objections, etc.).
      • EIPs returned by joint filers, where one individual on a jointly filed return is ineligible (e.g., deceased or incarcerated).
      • Unprocessed Injured Spouse Allocations, where Form 8379, Injured Spouse Allocation, is associated with the return used to calculate the EIP.

      Note:

      When applying TAS Criteria 5 to the issues in this subsection TAS will use August 10, 2020 as the normal IRS processing time for EIP issues. This means TAS will accept these issues as new cases under Criteria 5 beginning September 10, 2020. TAS will immediately accept cases under other criteria, including hardship cases under Criteria 1-4. See IRM 13.1.7.3.2, TAS Criteria 5-7, Systemic Burden

    5. Any other issues deemed eligible by the Deputy National Taxpayer Advocate.

  4. TAS cases involving EIP issues were coded CARES in the N.O. Use field on Taxpayer Screen 5 of TAMIS. TAS employees will continue to use CARES in the N.O. Use field on TAMIS for other cases impacted by the CARES Act.

13.1.7.6 (09-21-2021)

Same Day Resolution by Operations

  1. Problems that meet TAS criteria do not necessarily need to be sent to TAS when an operating division or function can immediately resolve them. It is important that all IRS employees handle potential TAS cases with the taxpayer’s best interest in mind. The definition of "Same Day Resolution" is "within 24 hours" . The following two situations meet the definition of "Same Day Resolution:"

    • The issue can be resolved within 24 hours.

    • The IRS takes steps within 24 hours to resolve the taxpayer’s issue.

    Cases that can be resolved on the "Same Day" should not be referred to TAS unless the taxpayer makes the request. Before referring potential cases to TAS, the following guidelines will be applied:

    1. A case meeting TAS criteria may be retained in the general program area when the problem has been corrected or will be resolved immediately (within 24 hours) to the taxpayer’s satisfaction, or resolution is undertaken (within 24 hours) AND

    2. The taxpayer is advised of the name, phone number, and unique identification number of the employee who resolved the problem, AND

    3. The NTA toll-free number, 1-877-777-4778, is provided and the taxpayer is advised that TAS is available if the resolution is not satisfactory.

Exhibit 13.1.7-1

General Response Time Guidelines

Issue IRM Reference Processing Time
Account Referral Form 4442 / e-4442 IRM 21.3.5.4.6.3 30 Days from Receipt
Adjustment / Math Error Notices IRM 21.3.1.5 See Specific Math Error
Audit / Collection Adjustment Overpayment (CP 210) IRM 21.3.1.5.90 2 to 5 Weeks
Collection Adjustment Balance Due (CP 220) IRM 21.3.1.5.90 2 to 5 Weeks
Copy of Audit Report IRM 21.5.10.4.4 60 Days
Copy of CP 2000 / 2501 / 2893C IRM 21.3.1.5.55 60 Days
Correspondence to the Accounts Management IRM 21.3.3.3.4 30 Days
Credit Transfer Overpayment (CP 62) IRM 21.3.1.5.39 2 to 4 Weeks
DDIA Changes in CSCO IRM 5.19.1.6.4.13.2 3 business days from receipt.
Form SS-4 Submitted by Mail IRM 21.7.13.3.6.1 4 Weeks
Form SS-4 Submitted by Fax IRM 21.7.13.3.7.2 2 weeks by mail, or TP can call back after 4 Business Days to receive EIN via phone or 1 week by return fax.
Form SS-4 Submitted by EIN Toll-Free Telephone Service IRM 21.7.13.3.5.1 Immediately under certain conditions
Form SS-8 IRM 21.7.2.5.3 180 Days from Receipt
Form W-7 / W-7A Instructions 7 Weeks (9 to 11 weeks during peak processing periods of January 15 through April 30)
Form 3911 Form 6 Weeks
Form 4506 - Copy of Return Instructions 75 Days
Form 4506 - Copy of W-2 Instructions 75 Days
Form 8379 Attached to Original Return Instructions 14 Weeks or 11 Weeks, if filed electronically
Form 8857 Instructions 6 Months
-A Freeze (Amended Returns) IRM 21.5.6.4.2 16 Weeks
-D Freeze IRM 21.5.6.4.8 45 Days
E Freeze IRM 21.5.6.4.9 6 Weeks from Control
S Freeze IRM 21.4.3.5.3 4 to 6 Weeks
T Freeze IRM 21.5.6.4.39 None Provided
INTST Payoffs by Phone IRM 5.19.1.6.2 Add 10 Days to Date TP States Payment will be made
INTST Payoffs by Mail IRM 5.19.1.6.2 Add 21 Days to Date TP States Payment will be made
Refund from Paper Return IRM 21.4.1.4. 6 to 8 Weeks
Refund from ELF Return IRM 21.4.1.4 3 Weeks
Refund from Form 1040-X IRM 21.4.1.4 16 Weeks
Response from Taxpayer to Underreporter IRM 4.19.2.3.1. 30 Days
Unpostable is Open IRM 21.5.5.3.3 6 to 8 Weeks
Unpostable is Closed IRM 21.5.5.3.4 6 Weeks
Exhibit 13.1.7-2

Terms

Term Definition
Case Advocacy Any employee working to advocate for the taxpayer. (This could include Intakes, Case Advocates, TAGMs, LTAs, etc.).
Economic Impact Payment (EIP) A recovery rebate credit for eligible individuals disbursed in fiscal year 2020.
Offset Bypass Refund (OBR) Issuance of a manual refund without first satisfying outstanding Federal tax liabilities when the taxpayer has an economic hardship.
Operations Assistance Request (OAR) Refers to Form 12412 which TAS employees use to recommend or request that the IRS act to resolve an issue when TAS lacks the statutory or delegated authority to resolve a taxpayer’s problem.
Pre-Refund Wage Verification Hold (PRWVH) Refers to the revenue protection program managed by the Return Integrity Verification Operation (RIVO) that identifies returns reporting false or fraudulent income.
TAMIS Computerized inventory control and report system used by TAS employees to assign, control, and maintain TAS inventory.
Taxpayer Assistance Order (TAO) A statutory tool used by TAS to order the IRS to take certain actions, cease certain actions, or refrain from taking certain actions. See IRC 7811 and IRM 13.1.20, TAS Taxpayer Assistance Order (TAO) Process. TAS uses Form 9102 to issue a TAO to the IRS.
Exhibit 13.1.7-3

Acronyms

Acronyms Definitions
ACTC Advance Child Tax Credit
CP Computer Paragraph
CQRS Case Quality Review System
CSCO Compliance Services Collection Operations
EDCA Executive Director Case Advocacy
EIP Economic Impact Payment
ELF Electronic Filing System
EITC Earned Income Tax Credit
ERS Error Resolution System
IDRS Integrated Data Retrieval System
IGM Interim Guidance Memorandum
IPSU Identity Protection Specialized Unit
IRC Internal Revenue Code
IRM Internal Revenue Manual
ITAP Internal Technical Advisor Program
ITAR Identity Theft Assistance Request
ITS Internal Technical Support
LITC Low Income Taxpayer Clinic
LTA Local Taxpayer Advocate
NTA National Taxpayer Advocate
OAR Operations Assistance Request
OBR Offset Bypass Refund
PRWVH Pre-Refund Wage Verification Hold
RIVO Return Integrity Verification Operations
RRC Rebate Recovery Credit
TAMIS Taxpayer Advocate Management Information System
TAO Taxpayer Assistance Order
TAS Taxpayer Advocate Service
TBOR Taxpayer Bill of Rights
TIGTA Treasury Inspector General for Tax Administration
Exhibit 13.1.7-4

Case Criteria Crosswalk to 7811 and Regulations

Type TAS Criteria Description Statutory Authority Regulatory Authority
Economic Burden 1 The taxpayer is experiencing economic harm or is about to suffer economic harm. 7811(a) (1)(B) -- Sec’y via Regs 301.7811-1(a)(4)(ii) -- serious privation.
Economic Burden 2 The taxpayer is facing an immediate threat of adverse action. 7811(a)(2)(A) 301.7811-1(a)(4)(ii)(A); (iv) Example 1
Economic Burden 3 The taxpayer will incur significant costs if relief is not granted (including fees for professional representation). 7811(a)(2)(C) 301.7811-1(a)(4)(ii)(C); (iv) Example 3
Economic Burden 4 The taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted. 7811(a)(2)(D) 301.7811-1(a)(4)(ii)(D); (iv) Example 4
Systemic Burden 5 The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem. 7811(a)(2)(B) 301.7811-1(a)(4)(ii)(B) and (iii); (iv) Example 2
Systemic Burden 6 The taxpayer has not received a response or resolution to the problem or inquiry by the date promised. 7811(a)(1)(B) -- Sec’y via Regs 301.7811-1(a)(4)(ii); (iv) Example 2
System Burden 7 A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer's problem or dispute within the IRS. 7811(a)(1)(B) -- Sec’y via Regs 301.7811-1(a)(4)(ii)
Best Interest of Taxpayer 8 The manner in which the tax laws are being administered raises considerations of equity, or has impaired or will impair the taxpayer's rights. 7811(a)(1)(B) -- Sec’y via Regs 301.7811-1(a)(4)(ii) -- serious privation; TBOR
Public Policy 9 The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers. 7811(a)(1)(B) -- Sec’y via Regs 301.7811-1(a)(4)(ii) -- serious privation; failure to resolve.