Purpose: This section describes the actions taken or considered by Taxpayer Advocate Service (TAS) employees as they work on building and resolving a case. This section also encourages employees to consider the best interests of the taxpayer as they work a case to completion.

Audience: These procedures apply to all Case Advocacy employees working taxpayer cases.

Policy Owner: The Executive Director Case Advocacy, Intake & Technical Support (EDCA-ITS), who reports to the Deputy National Taxpayer Advocate (DNTA).

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

TAS case resolution presents a challenge, because our case levels are affected not only by fluctuations in IRS activities and systemic issues, but also by external factors, including new legislation, natural disasters, and the general environment. For Intake and Case Advocates, the pressure of new and continuing cases can be daunting.

For many taxpayers, the TAS employee is the one person in the IRS who has the time to listen to them and fully address their tax problems. Therefore, we do not want our case procedures to be so cumbersome that TAS employees feel like they are just checking items off a list and are no longer advocating for the taxpayer. On the other hand, TAS employees must adhere to certain procedures that are designed to properly implement the congressional mandates and direction found in IRC 7803, and IRC 7811, including the identification of systemic problems and their solutions.

TAS has a responsibility to ensure that our procedures help, not impede us from fulfilling our mission, without imposing unnecessary burden on TAS employees. TAS employees, in return, must try to understand why a given procedure is necessary to TAS’s mission, and suggest procedures that might better achieve that goal and when appropriate, suggest procedures using the established process (e.g., Systemic Advocacy Management System (SAMS)) that might better achieve that goal.

There are generally three phases to resolving a TAS case:

It is important not to confuse the concept of “hardship” and the concept of “significant hardship.” To issue a Taxpayer Assistance Order (TAO), the Internal Revenue Code (IRC) requires that the taxpayer be suffering or about to suffer a significant hardship. 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 IRM 13.1.7; but all TAS cases involve some form of hardship. To issue a Taxpayer Assistance Order (TAO), IRC 7811 requires that the taxpayer be suffering or about to suffer a significant hardship. TAS’s ability to assist taxpayers is rather broad; however, circumstances that allow TAS to issue a TAO are determined under IRC 7811, and hold certain limitations. A case should be accepted into TAS based on the case acceptance criteria. While a “significant hardship” under IRC 7811, isn’t required for TAS to accept a case, TAS Case Criteria and IRC 7811 are closely aligned.

The decision of whether a TAO can be issued because of a significant hardship within the meaning of IRC 7811, is a separate decision from whether the taxpayer is suffering a hardship that qualifies for TAS assistance under Criteria 1 through 4. TAS’s ability to issue a TAO because of a significant hardship is an option in certain circumstances for resolving a case, but significant hardship is not the basis for accepting a case into TAS.

You will see places in IRM 13 that refer to hardship. Again, do not confuse “hardship” with “significant hardship.” Such references to hardship generally should be viewed in the context of Criteria 1 through 4 as references to economic burden. To accept a case into TAS under Criteria 1 through 4, the taxpayer must allege that the hardship presents an economic burden. The nature of the economic burden will dictate under which specific criteria (1, 2, 3, or 4) TAS should accept the case.

Using the right terms is important in working TAS cases. For example, we changed the term formerly used in our case criteria to designate Criteria 1 through 4 from “economic hardship” to “economic burden.” We did this because TAS and IRS employees alike, were confusing the idea of what it takes to get into TAS as a case with what it takes to get relief from a levy under IRC 6343(a)(1)(D), (where the term “economic hardship” is used in the Code to allow for release of levy). These are two different concepts. Meeting TAS’s economic burden case criteria does not automatically qualify the taxpayer for relief under IRC 6343(a)(1)(D), economic hardship.

The five essential components of working TAS cases are:

The time frames discussed in this IRM are the maximum allowed for taking case actions. Certain cases may involve issues that require TAS’s immediate attention and will be worked more expeditiously than this IRM suggests. TAS employees must review the specific facts and circumstances of certain time-sensitive cases received from his or her manager or acting designated official and take necessary actions to immediately address or resolve the time-sensitive issue(s). See IRM 13.1.16.8, Sources of TAS Cases and Initial Intake Actions.

Specific dates must be used by TAS employees when identifying, taking, or requesting actions of any kind (e.g., conducting additional research or contacting the taxpayer). These dates should be reasonable and established using appropriate guidelines. Use of these dates keeps the case moving from intake to resolution, and enables any employee involved in the case to monitor and track the actions taken.

A Follow-Up Date (FUD) is a date established to move the case toward resolution. A FUD documents when TAS plans to take the next case action.

A Next Contact Date (NCD) is a date given to the taxpayer or representative as to when TAS will make the next contact.

If you are unable to reach the taxpayer on or before the NCD and the taxpayer gave approval to leave a message on the answering machine, ensure all requirements in IRM 13.1.6.7, Leaving Messages on Answering Machines, are met by documenting the TAMIS history before leaving a message.

An Estimated Completion Date (ECD) is an estimated date for case resolution, communicated to the taxpayer or representative, and documented in the TAMIS history.

This section describes the actions that TAS will take within three workdays of the Taxpayer Advocate Received Date (TARD) for Criteria 1–4 cases and within five workdays of the TARD for Criteria 5–9 cases. Actions that are not taken within these timeframes should be taken on the first available date afterwards.

TAS employees need to take the following actions in this section, if appropriate, as part of their initial case actions and establish reasonable follow-up dates for all pending actions.

Review the TAS Case Criteria Code to determine if it is correct. There are two types of errors that may result in incorrect coding: administrative errors and factual errors. Generally, the criteria code will not be changed on a case unless the incorrect code was input on the case when the case was taken into TAS and an administrative or factual error occurred.

Conduct additional research. Research IDRS and other IRS databases to determine the status of the issue and if there are any controls by an Operating Division (OD) or Functional Unit. Use the Research field on the TAMIS Initial Actions Screen to document research conducted.

Control the case on IDRS. Open an IDRS control base on all affected accounts and modules. Document this on the TAMIS Initial Actions Screen by entering the date in the “IDRS Control“ Established Date field.

Suspend Collection Activity. Attempt to suspend all lien filings and levy actions, including blocking levies under the Automated Levy Program (e.g., Federal Payment Levy Program (FPLP) and State Income Tax Levy Program (SITLP)), until a final decision on the issue is made. Input STAUPs, request Automated Collection System (ACS) holds, block FPLP and SITLP, and contact Revenue Officers, as appropriate. Document your actions and date of action on the TAMIS Initial Actions Screen or TAMIS History Screen. Document, in the TAMIS History, items that cannot be captured on the Initial Actions Screen. If you are unable to suspend a notice, lien filing, or levy action prior to issuance, notify the taxpayer immediately. See IRM 13.1.10.11, Suspending Collection Action, for additional information. If it will take more than three (3) workdays to suspend lien filings and levy action, negotiate a completion date for the suspension with the OD/Functional unit.

Document POA Information. When a representative is involved, document the name, contact information, and authorization on the TAMIS POA Screen.

Request Internal Information. Make requests for any information needed from internal sources. Order internal documents, if applicable.

Third-Party Contacts. Determine whether a third-party contact is necessary and whether the taxpayer has already received notification of possible third-party contacts or signed a March 2000 (or later) revision of Form 911. The Form 911 provides notice to the taxpayer of the potential need to contact third parties in order to respond to the taxpayer’s request for assistance. When signing Form 911, the taxpayer is authorizing TAS to contact third parties. No further notification to the taxpayer is required. The taxpayer(s) or certain representatives (e.g., attorneys, Certified Public Accountants (CPAs), or enrolled agents) with a valid POA, Form 2848), may give authorization over the telephone to contact third parties. Follow the instructions listed in IRM 13.1.2.5, Third Party Contacts, when securing and documenting permissions to make third party contacts. Document permissions in TAMIS. Record third-party contacts on the TAMIS Third Party Contact Screen. When a Third-Party Contact is made by TAS, document TXMOD on IDRS. Do this by inputting CC REQ77, TC 971 AC 616, Third Party Contact notification made by Taxpayer Advocate.

IRC 7811, Significant Hardship Determination. Determine if you have enough information to make an accurate IRC 7811, Significant Hardship Determination, or if additional information is needed to make this determination. If enough information exists, make the determination at this point in the case. For additional information, See IRM 13.1.18.9, Making an IRC 7811 Significant Hardship Determination.

The Initial Actions Screen on TAMIS assists TAS employees when documenting initial case actions and initial contacts. TAS employees are required to use the Initial Actions Screen.

If the initial contact is not completed during case intake, contact the taxpayer or representative by telephone within three workdays of the TARD for criteria 1-4 cases, and within five workdays of the TARD for criteria 5-9 cases, to notify the taxpayer of TAS’s involvement and independence from the IRS. See IRM 13.1.2.4.2, Inform Taxpayer of TAS’s Independence. For taxpayers speaking a language other than English, see IRM 13.1.16.4.5, Assisting Taxpayers Speaking a Language Other Than English.

Explain the confidentiality rule of IRC 7803(c)(4)(A)(iv). TAS personnel should also tell taxpayers that they will generally need to provide information to IRS personnel to resolve the taxpayer’s problem. See IRM 13.1.5.6, Communicating Confidentiality Rules to Taxpayers and Taxpayers’ Representatives.

The following is an example of what TAS employees could tell a taxpayer or representative when he or she contacts TAS: The IRC gives TAS the discretion not to disclose certain information to the IRS. However, TAS will likely have to disclose to the IRS at least some of the information to obtain the assistance or relief you are requesting.

It is important to secure all documentation needed to support case resolution. This documentation may be required by the OD/Functional Unit or may be required by TAS to take an action (e.g., issuing a manual refund) per the IRM or other procedural guidance. TAS will generally request from the taxpayer only the information required by the IRC, regulations, IRM, or other procedural guidance. Do not request documents from the taxpayer that are already present on IRS systems (e.g., CIS, AMS, RGS/CEAS, ALS). Document in TAMIS all the information requested from the taxpayer, the date the taxpayer has agreed to provide the documentation, and other information discussed, relevant to the case.

Leaving a message on an answering machine is not considered an Initial Contact with the taxpayer. There are certain actions that must take place during initial contact that can only be satisfied by personal contact with the taxpayer or by sending a letter within the prescribed time frames. See IRM 13.1.6.7, for disclosure rules when leaving messages on answering machines.

If you receive a transferred case after the initial acknowledgment (see TAS Letters, Transfer Letter 2902L), you are required to contact the taxpayer by the date promised. However, if the taxpayer has circumstances that would be made worse by waiting until the promised NCD or FUD, action must be taken sooner. See IRM 13.1.18.4, Time Frames for Taking Case Actions.

For criteria 5 - 9 cases, if you can close your case within five workdays of the TARD and the taxpayer has not been notified of TAS case handling, you can use one contact, by telephone if possible, to notify the taxpayer of both TAS involvement and problem resolution. If you are not able to reach the taxpayer by telephone, send a letter by the fifth workday after the TARD.

A letter is only appropriate when the taxpayer cannot be contacted by telephone. If a letter must be sent, it must be sent by the third workday after the TARD for criteria 1-4 cases, and by the fifth workday after the TARD for criteria 5-9 cases.

Advise the taxpayer of your name, job title, address, telephone number, office hours, and ten-digit SmartID badge number. Explain to the taxpayer or representative that TAS has offices in all 50 states and Puerto Rico. See IRM 13.1.6.2, Oral Communication, IRM 21.1.1.4, Communication Skills, and IRM 10.5.7.7, Employee Identification Requirements.

Provide a meaningful apology specific to the taxpayer’s issue, if appropriate. See IRM 13.1.6.5, Apology.

Verify how the taxpayer’s inquiry came into TAS. Input or update the Outreach codes in TAMIS Taxpayer Screen 1, as appropriate.

Clarify the taxpayer’s issue(s) and the relief or assistance requested. If, after the initial contact with the taxpayer, the TAS employee determines the original statement was unclear or incorrect, make the correction and document TAMIS.

Upon clarification of the taxpayer’s issue(s) and the relief/assistance requested, update the TAMIS Primary Core or Secondary Core Issue Codes (PCIC and SCIC) and the TAMIS Action Plan Screen.

Use the Initial Actions Screen 2 on TAMIS to document initial contact actions and notate the date of the next action(s) (FUD/NCD). Document the TAMIS History with details of your conversation with the taxpayer, that are pertinent to the case.

If you have not made an IRC 7811, Significant Hardship Determination, and you have enough information to make a determination, make it. See IRM 13.1.18.9.

Request any documentation or information needed from the taxpayer or representative to provide relief/resolution. Information requested should pertain directly to the taxpayer’s issue(s) and the relief or assistance needed. Agree on a due date for the taxpayer/representative to provide the information. Document TAMIS with a description of the information requested and the due date.

Provide the taxpayer with a NCD and notate on TAMIS.

When the initial contact is conducted during intake, employees will set the NCD for three workdays following the TARD for criteria 1 through 4 cases. When the initial contact is conducted during intake, employees will set the NCD for ten workdays following the TARD for criteria 5 through 9 cases. When the employee identifies specific facts and circumstances of certain time-sensitive issues where the taxpayer could be adversely impacted because TAS did not take actions to immediately address or resolve the time-sensitive issue(s), he or she will discuss the case with the manager to determine whether the case requires immediate assignment. If the manager determines the case requires immediate assignment, he or she will alert the manager of the receiving office within one workday and document the TAMIS history.

Provide the taxpayer with an ECD and notate on TAMIS.

Inform taxpayers what TAS will do to resolve their issue(s), based on what you know from initial research and discussion with the taxpayer.

The Taxpayer Bill of Rights (TBOR), groups the existing rights in the tax code into ten fundamental rights and makes them clear, understandable, and accessible.

Criteria Code 1-4 cases involve situations in which taxpayers request assistance due to an economic burden, and obtaining this assistance is usually the taxpayers’ utmost concern. Once the economic burden is alleviated, there may be other problems or issues that TAS needs to resolve before a case can be closed.

Generally, TAS’s priority when working an economic burden case is to determine if action(s) can be taken to alleviate the taxpayer’s economic burden, and if so, to provide the necessary assistance to the taxpayer.

There may be more than one way to assist taxpayers. TAS may grant or partially grant the action that was requested by the taxpayer, or may provide an alternative solution.

The decision to alleviate the taxpayer’s economic burden will be based on the pertinent facts of the case and TAS’s ability to grant the relief based on the IRC, regulations, and IRS guidance such as that found in the Internal Revenue Manual (IRM). It is not possible to provide an all-encompassing set of guidelines. OARs and TAOs must be considered and used when TAS does not have the authority to take the action needed.

If necessary, discuss the issue with a Lead Case Advocate (LCA), Technical Advisor, Manager, LTA, or the Division Counsel/Associate Chief Counsel (National Taxpayer Advocate) Program. See IRM 13.1.12.1.2, Requesting Assistance from Technical Advisors, and IRM 13.1.10.2, Obtaining Legal Advice from Chief Counsel.

It may not be possible to alleviate the taxpayer’s economic burden because the law prevents TAS from taking the necessary actions. Advise the taxpayer why TAS cannot assist or provide relief and that the taxpayer has the right to speak to the LTA. Work with the taxpayer to resolve any other case issues.

If an economic burden case is determined to meet IRC 7811 (see IRM 13.1.18.5(10), Initial Actions, and the TAS employee decides that the relief requested by the taxpayer is not warranted, see IRM 13.1.21.2.1(7)(a), Closing Actions.

Do not deny relief solely because a taxpayer is not current with filing returns. The taxpayer may need assistance in obtaining the information necessary to prepare the returns.

Use subsequent contacts to further remind or inform taxpayers of the Taxpayer Bill of Rights (TBOR). Ask taxpayers if they have any questions concerning their rights. If a new issue presents itself during the case that involves or impacts TBOR, discuss the additional applicable right(s) (unique to the taxpayer’s case) with the taxpayer, and ensure the taxpayer understands the right(s). Document the discussion in TAMIS. See IRM 13.1.18.6(21), for more information and guidance on addressing TBOR in written communication.

Subsequent case actions should focus on resolving the taxpayer’s problems and moving the case toward closure. These actions may involve reviewing and acting on information received from the taxpayer, contacting the taxpayer to acknowledge receipt of information, contacting third parties to request information, and conducting additional research. Document your actions on TAMIS within two workdays of when you took the action. If TAMIS is unavailable, document your actions on TAMIS within two workdays of when TAMIS becomes available and notate the date of your actions.

Documentation on TAMIS should include pertinent details of your conversations with taxpayers, representatives, and IRS and TAS employees concerning the case. This includes the specific documentation you requested from the taxpayer and what the taxpayer provided. Case documentation should be detailed enough so that anyone without prior knowledge of the case can read the case history and readily determine what actions have taken place and what needs to be done to resolve the taxpayer’s issue(s).

Continue to use FUDs and NCDs and take case actions timely. Keep the taxpayer informed of actions taken and actions TAS will take. Provide the taxpayer or representative with a revised ECD, as necessary. See IRM 13.1.18.4(6), Time Frames for Taking Case Actions.

As actions are taken and the case progresses, update any TAMIS data fields as necessary. Examples of fields which may change or require additional input (although not all-inclusive) include the Case Factors Screen, PIC and SIC Codes, POA Screens, OAR Screens, and the Action Plan Screen.

Update and revise the initial plan of action on the TAMIS Action Plan Screen, and the subsequent plans of action(s) within two workdays of when a new issue, time frame, process, or procedure is identified. Document on TAMIS the issue and the action necessary to resolve the case.

Document the performance and the outcomes of the actions that are listed on the TAMIS Action Plan Screen. This documentation includes canceling a planned action. The action plan, together with the documentation in the TAMIS History, of the performance and the outcomes of each planned action, provides a road map for anyone to follow:

If you have enough information to make an accurate IRC 7811, Significant Hardship Determination, make the determination on TAMIS Taxpayer Screen 3.

Verify the TAMIS information is correct and complete during your initial review. Some of the data initially loaded on the e-911, Electronic Request for Taxpayer Assistance Order (and Application for Taxpayer Assistance Order), from the Account Management System (AMS) and then loaded on TAMIS may be incomplete or outdated, as some of the information is retrieved from IDRS. Therefore, ensure that the TAMIS information is correct and complete. Later, as the case develops, update the appropriate TAMIS Screens and fields, as necessary.

TAS is required to make a determination of significant hardship on all cases. This determination is referred to as an “IRC 7811, Significant Hardship Determination.” It is essential that TAS distinguish those taxpayers who need TAS assistance due to a significant hardship as defined by IRC 7811, from others who need TAS assistance but are not experiencing or about to experience a significant hardship as defined by IRC 7811. Taxpayers with a significant hardship may potentially need a TAO to obtain relief.

By identifying a significant hardship situation, TAS is better prepared to offer these taxpayers the assistance they require, when they need it. IRC 7811 gives the National Taxpayer Advocate the authority to issue TAOs and that authority has been redelegated to Local Taxpayer Advocates. See IRM 1.2.2.12.1, Delegation Order 13-1 (Rev. 1). The purpose of making an IRC 7811 Significant Hardship Determination on every case is to ensure that TAOs are considered when:

Generally, as defined in IRC 7811 and Treas. Reg. 301.7811–1(a)(4)(ii), before a TAO may be issued, TAS is required to make a determination regarding significant hardship. The term significant hardship means a serious privation caused or about to be caused to the taxpayer as a result of the particular manner in which the revenue laws are being administered by the IRS. Significant hardship includes situations in which a system or procedure fails to resolve the taxpayer’s problem or dispute with the IRS. A significant hardship also includes, but is not limited to:

Examples of situations that involve significant hardships are:

The circumstances listed above are not meant to be an exhaustive list of what constitutes significant hardship to taxpayers. TAS must use common sense and good judgment when making an IRC § 7811 Significant Hardship Determination. Here are two examples to consider:

It is important that you do not allow your personal values or opinions to affect the determination of the validity of the taxpayer’s hardship.

The determination of significant hardship should be reached on the issue of hardship alone without considering: