5.1.20 Collection Inventory

Manual Transmittal

November 02, 2016

Purpose

(1) This transmits a revised version of IRM 5.1.20, Field Collecting Procedures, Collection Inventory.

Material Changes

(1) This IRM is completely reorganized and revised to better align with the typical flow of inventory. Existing subsections were renamed/renumbered and new subsections were added. Miscellaneous editorial changes and updated references were also incorporated throughout.

(2) IRM 5.1.20.2 revised to provide an overview of the Inventory Delivery System (IDS). Address and telephone research application references have been removed as IDS no longer completes these checks.

(3) IRM 5.1.20.2.1 revised to include additional information regarding IDS modeling and business rules to provide an overview of IDS prioritization processes.

(4) IRM 5.1.20.2.1(5) description of ENTITY case prioritization moved to IRM 5.1.20.4.2 to emphasize the separate prioritization determinations made by IDS and ENTITY. Added programming update to the case prioritization process used in ENTITY describing the improvements made by the addition of predictive productive models for TDA and TDI cases.

(5) IRM 5.1.20.2.2 added to describe how cases are processed through the IDS system for routing to the collection functions.

(6) IRM 5.1.20.2.3 Collection Inventory Management - Tools renumbered as IRM 5.1.20.4 and includes updated system descriptions.

(7) IRM 5.1.202.3.1 Integrated Collection System renumbered as IRM 5.1.20.4.3.

(8) IRM 5.1.20.2.3.2 Resource Workload Management System (RWMS) moved to IRM 5.1.20.2.2(1) and now included as a note.

(9) IRM 5.1.20.2.3.3 ENTITY renumbered as IRM 5.1.20.4.1.

(10) IRM 5.1.20.2.4.1 Cases that Bypass ACS and the Queue that go Directly to ICS renumbered as IRM 5.1.20.3.1. Added Special Project Code and Estate and Gift cases for assignments to ATAT GM hold files. Removed MFT list for CSED cases that cannot be transferred to the queue.

(11) IRM 5.1.20.2.4.2 Cases that Bypass ACS and Go to the Queue renumbered as 5.1.20.3.2. Clarified Windfall Profit Tax modules and removed MFT 31 cases from list.

(12) IRM 5.120.2.4.3 Cases that Cannot be Moved to the Queue renumbered as IRM 5.1.20.3.3. A link to the Document 6209 restrictive conditions is now provided in place of the table.

(13) IRM 5.1.20.2.4.4 Cases with Restricted Assignment renumbered as IRM 5.1.20.3.4

(14) IRM 5.1.20.2.5 Collection Inventory Management - Assignments and Inventory levels was removed due to being a duplicate of information contained in IRM 1.4.50.10, Assigning Work.

(15) IRM 5.1.20.2.5.1 Revenue Officer Assignments renumbered as IRM 5.1.20.2. BAL DUE issuance dollar criteria was removed due to being a duplicate of information contained in IRM 5.1.12.8.1, Coordinating with Examination on HARA Cases.

(16) IRM 5.1.20.2.5.2 Targeted Inventory Levels removed. Information can be found in IRM 1.4.50.10.2(4). Maintaining Targeted Inventories.

Effect on Other Documents

This IRM supersedes IRM 5.1.20 dated October 27, 2014.

Audience

Revenue officers in SB/SE Field Collection (FC).

Effective Date

(11-02-2016)

Michelle Alvarado
Acting Director, Collection Inventory, Delivery and Selection
Small Business/Self Employed

Collection Inventory — Overview

  1. This IRM provides information, guidance, and procedures for Field Collection (FC) employees regarding collection inventory selection, delivery, and management.

  2. The procedures in this IRM are specifically for revenue officers (RO) due to the complex nature of the collection cases assigned to them although other employees in SB/SE and employees in other functions may refer to this IRM.

Inventory Delivery System - Overview

  1. The Inventory Delivery System (IDS) is the inventory routing system for collection cases. IDS uses analytical scoring models and a business rules engine to route collection cases which have not been resolved during the notice stream to Field Collection, the Queue, Automated Collection System (ACS), and Automated 6020(b) (A6020b).

  2. IDS receives cases from the Automated Collection System (ACS), Automated Substitute for Return (ASFR), Automated 6020(b), the Queue, Taxpayer Delinquent Account (TDA) Analysis, and Taxpayer Delinquency Investigation (TDI) Analysis. IDS requests relevant information from IDRS Taxpayer Information File (TIF) and Corporate Files On-Line (CFOL), which is then used for inventory processing analysis.

Inventory Delivery System - Prioritization

  1. IDS uses analytics including advanced modeling techniques along with established rulesets to systemically prioritize and route cases to each of the collection functions.

  2. Predictive productive model scores are calculated for MFT 30, MFT 01, MFT 10, and MFT 02 modules which are used to prioritize certain cases for ACS and FC assignment.

  3. Various business rules housed within IDS are used to route cases to the collection functions. Collection policy establishes the rules to support the collection program objectives. The Collection Analytics, Routing and Selection (CARS) headquarters group maintains the rules engine. CARS also periodically reviews the rules to ensure their continued effectiveness and adherence to the current collection program goals.

    Note:

    While IDS uses analytics and business rulesets to prioritize and route cases, IDS does not determine the priority of the cases within each of the functions. IDS passes the model scores to each function’s inventory management system to make the final prioritization determination.

  4. IDS prioritization ensures fairness and integrity through using an equitable process for all taxpayers by using systemic scoring and routing mechanisms to ensure no one individual can control the enforcement selection decision-making process which aligns with Policy Statement P-1-236.

Inventory Delivery System - Case Processing

  1. IDS completes the following actions to analyze cases:

    1. IDS determines the predicted grade level of the case by using established IDS case grading rules.

      Note:

      Cases not graded by IDS will continue to receive their grade from Resources and Workload Management System (RWMS). IRM Exhibit 1.4.50-1 reflects the criteria used by RWMS to determine the case grade.

    2. IDS assigns a higher precedence routing indicator to some cases, which is later utilized by the various business rulesets to route cases to the various functions.

    3. IDS uses advanced modeling techniques to create a predictive productive model score. This score is then used in case routing decisions and by other downstream collection systems.

  2. After case analysis IDS uses established business rules to route cases to:

    1. Field Collection (Direct assignment)

    2. Queue 7000

    3. ACS

    4. A6020b

    5. Shelved (TC 530 CC 39)

Collection Inventory Management — Rules

  1. Existing business rules limit or restrict Balance Due Account (BAL DUE) and Delinquent Return Investigation (DEL RET) movement in several different ways.

Cases that Bypass ACS and the Queue that go Directly to ICS

  1. The following BAL DUE or DEL RET cases move directly from notice status for direct Field Collection assignment. These cases bypass both ACS and the Queue and are assigned directly to ICS (cases will be sent directly to the manager's hold file):

    • Any Non Master File (NMF) account

    • IRS Employee

    • Transaction Code (TC) 148-9 (Letter 903)

    • Special Project Code cases assigned to Abusive Tax Avoidance Transaction (ATAT)

    • Estate and Gift cases assigned to ATAT

    • Quick or Prompt assessment

    • Wage & Investment (W&I) case transferred to SB/SE campus or case transferred outside of current campus with an imbedded field assignment number or last Master File Status was Status 26

    • Possible problem/duplicate case where there is no Service Center (SC) History and the case is NOT being transferred and the last Master File Status 26

    • Open BAL DUE or DEL RET already assigned to ICS – new module added

    • Current IDRS assignment number to ICS and no open BAL DUE or DEL RET

      Example:

      CIP, OI, etc.

    • Defaulted IBTF IA's

    • Defaulted PPIA asset cases

    • Cases with Sub Code = 601, 602, 603 (Taxpayer Requested Contact)

    • Cases with Sub Code = 604 (Large $ Case)

    • Any cases returning from Appeals (Status 72) - the most recent prior assignment was FC

    • Any Innocent spouse (MFT 31) assessment - Master File Status = 21 and the most recent prior assignment was FC

Cases that Bypass ACS and Go to the Queue

  1. The following BAL DUE and DEL RET cases bypass ACS. They move from notice status directly to the queue where they await assignment for collection:

    • Special Non Compliance (TC 148-5, 6, 7)

    • Any DEL RET where the case code is 914 or 3949

    • Offer in Compromise (OIC) acceptance year is significant

    • Windfall Profit Tax (MFT 03 and the delinquent module filing requirement is 6 or 7)

    • MFT 12, 15, 52, 61, 63, 64, 77, or 78

      Note:

      For DEL RET, MFT must be 12, 52, 61, 63, or 64

    • Innocent Spouse (Left hand freeze code L- )

    • Any installment agreement needing financial review

    • W&I case transferred to SB/SE campus or case transferred outside of current campus with an imbedded queue assignment or last Master File Status = Status 24

    • Master File Collection Location Code (CLC) housekeeping or possible problem/duplicate case where there is no SC Status history and the case is NOT being transferred and the last Master File Status = Status 24

Cases that Cannot be Moved to the Queue

  1. The following cases (whether when directly assigned or later routed to ICS) are restricted from moving to the queue:

    1. Any Non Master File (NMF) account

    2. IRS Employee

      Note:

      If other FERDI cases are received in ICS they may not be returned to the queue.

    3. Refund Hold (DEL RET) case

    4. TC 148- 9 (Letter 903), reverse with a TC 149 as appropriate

    5. Collection Statute Expiration Date (CSED) expires within six months

    6. Secondary DEL RET Code I

    7. DEL RET notice code T (duplicate request)

    8. Related module in Status 76 (immediate TDA pending) or related module in Status 77 (accelerated notice account)

      Note:

      You must wait until the related module(s) goes to Status 26 and then put the case in the queue

    9. Taxpayer cases, with some or all modules, under Appeals jurisdiction for a CDP or equivalent hearing

      Note:

      This restriction from moving to the queue is not systemic

      Exception:

      If there is a CDP Appeals OI open on ICS, you may send the case to the queue

    10. Restrictive Conditions listed in Section 8, Part 5 of Document 6209

      Note:

      If any restrictive conditions are present on a module/account, IDRS will not update the status or resume balance due notice/TDA issuance until all restrictive conditions are removed. These conditions must be taken into consideration when a command code or transaction code are input to reactivate the balance due notice/TDA routine.

    11. MFT 31 RBA (restitution based assessment) cases

    Note:

    Most of these cases are currently identifiable by ICS and are blocked up-front. Those cases not blocked will return to ICS or show up on the ICS/ENTITY Quality Analyst (IQA) listing.

    Reminder:

    Defaulted/terminated PPIA asset/no asset cases may be moved to the queue if appropriate.

Cases with Restricted Assignment

  1. The following cases (whether directly assigned or later routed to ICS) are restricted from moving from their present assignment. These cases cannot be sent to the queue and they are not transferable, etc., when the following conditions are present:

    • Disaster code 1, 2, or 3

    • Left hand freeze code O-

    • Any IMF case with a Killed in Terrorist Action (KITA) indicator 2

Collection Inventory Management — Tools

  1. Two inventory management applications available to Field Collection (FC) are Entity Case Management System (ENTITY) and Integrated Collection System (ICS).

  2. ENTITY supports essential FC activities:

    • Case Management - provides group managers (GMs) and ROs with case data from reports and queries which can be used to manage inventory.

    • Case Selection/Assignment - The GM Case Assignment function in ENTITY is the primary method Field Collection GMs use to assign inventory from the Queue to ROs in their group.

    • Time Reports – FC End of Month (EOM) reports are generated and approved in ENTITY.

  3. ICS supports essential FC workload management:

    • Electronic case management – assignments, open and close case actions

    • Electronic case documentation – contact and history recordation

    • Electronic Notice of Federal Tax Lien requests – requests extracted to Automated Lien System (ALS)

ENTITY Case Management System

  1. The ENTITY Case Management System (ENTITY) is a current database of Field Collection (FC); Field Offer in Compromise (OIC) and Advisory inventories. The ENTITY application receives data from the Integrated Collection System (ICS) for open, closed and return to queue cases; the Delinquent Inventory Account List (DIAL) for queue cases; and the Automated Lien System (ALS) for lien information on all cases.

  2. ENTITY provides ROs and GMs with report data, which can assist them in managing inventory. ENTITY produces reports that can be used at the individual group, territory, area and national levels.

  3. The GM Case Assignment function available in ENTITY is the primary method Field Collection GMs use to assign inventory from the Queue to ROs in their group. Predictive productive model data is used to prioritize TDA and TDI cases for selection.

  4. For more information on ENTITY, refer to IRM 5.3.1, ENTITY Case Management System.

ENTITY- Prioritization

  1. ENTITY uses the predictive productive model data to present inventory for assignment in the following categories:

    • 99, Accelerated

    • 101 - 108, High Priority

      Note:

      Priority 100 cases are transfers from ACS assigned directly to the GM Hold file

    • 201 – 208, Medium Priority

    • 301 – 303, Low Priority

      Exception:

      Priority 399 is the default priority level for non-IDRS assignments and is not associated with the priority of the case. For example, an OI issued by Centralized Case Processing (CCP) for collection on a pyramiding in-business taxpayer may be assigned priority level 399 but is a high priority case.

Integrated Collection System

  1. The Integrated Collection System (ICS) provides workload management, case assignment/tracking, inventory control, electronic processing, and case analysis tools to support the SB/SE organization collection fieldwork. ICS is a Windows based software application. Its architecture consists of two layers of hardware and software. The first tier consists of the ICS mainframe and is located at the Tennessee Computing Center. The second tier consists of Windows based software on Workstations which are located at each person's workspace.

  2. Access the ICS web site for further information including updates about ICS changes: http://icsweb.web.irs.gov/.

Revenue Officer Assignments

  1. Revenue Officer assignments consist of the following:

    • Balance Due Accounts (BAL DUEs)

    • Delinquent Return Investigations (DEL RETs)

    • Other (Courtesy) Investigations (OIs)

    • Federal Tax Deposit Alerts (FTD Alerts)

    • Offers in Compromise (Form 656, Offer in Compromise)

    • Compliance Initiative (or Improvement) Projects (CIPs) (formerly known as Returns Compliance Programs)