5.19.1 Balance Due

Manual Transmittal

September 26, 2018

Purpose

(1) This transmits revised IRM 5.19.1, Liability Collection, Balance Due.

Material Changes

(1) The following table outlines changes made to IRM 5.19.1, Balance Due. It incorporates updated procedures, editorial changes and clarifications since the revision dated January 8, 2018.

IRM Subsection Description
IRM 5.19.1 Updated throughout to incorporate additional instructions for Account Management employees in preparation for the anticipated obsolescence of IRM 21.3.12, Accounts Management Balance Due Telephone Contacts.
IRM 5.19.1.1 through IRM 5.19.1.1.7 Inserted Program Scope and Objectives with content to comply with the new Internal Management Documents System, Internal Revenue Manual (IRM) internal control requirements. Remaining Sections renumbered and hyperlinks updated accordingly
IRM 5.19.1.2, Balance Due Overview Updated hyperlink in paragraph (5).
IRM 5.19.1.2.1, Submitting SERP Feedback Revised throughout.
IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party Added hyperlink to reference for taxpayers who filed jointly but are now separated or divorced.
IRM 5.19.1.2.2.1, ACS Call Site Instructions for Form 8821, Taxpayer Information Authorization Reorganized paragraph (3).
IRM 5.19.1.2.2.2, ACS Call Site - Additional Taxpayer Authentication Reorganized paragraph (4).
IRM 5.19.1.2.3, Recommended Call Flow Updated first row of second table under paragraph (1). Changed title to Recommended ACS Call Flow..
IRM 5.19.1.2.3.4, Installment Agreements - ACS, ACSS and CSCO Employees Added exceptions for FERDI accounts.
IRM 5.19.1.2.4, Documenting Account Actions Added Reminder to paragraph (1).
IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Revised to include BBA 2018 changes to IRC 6159 in (8)(i), (10)(e), and (11)(f).
IRM 5.19.1.2.6.2.2, Short Term Payment Plans, Short Term Payment Plans Field Assistance, FA, Employees Updated guidance to correspond with IRM 5.19.1.6.3. Allow up to 120 day.
IRM 5.19.1.2.6.2.3, Short Term Payment Plans ACS, ACSS and CSCO Employees Updated guidance to correspond with IRM 5.19.1.6.3. Allow up to 120 day. Updated paragraph (1).
IRM 5.19.1.2.6.3, Installment Agreements Updated paragraphs (1) and (2).
IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees Deleted paragraph (4).
IRM 5.19.1.2.6.3.2, Installment Agreements - Accounts Management, AM, Employees Revised throughout.
IRM 5.19.1.2.6.3.3, Installment Agreements - Field Assistance, FA, Employees Reorganized throughout.
IRM 5.19.1.2.6.3.4, Installment Agreements - ACS, ACSS and CSCO Employees Reorganized throughout.
IRM 5.19.1.2.6.4, Financial Analysis, Verification and Substantiation Added Exception to paragraph (2).
IRM 5.19.1.2.6.4.1, Financial Analysis, Verification and Substantiation - All Employees Added Exception to paragraph (1) and deleted last row of table.
IRM 5.19.1.2.6.4.2, Financial Analysis, Verification and Substantiation – Accounts Management, AM, and Field Assistance, FA, Employees Changed title to Financial Analysis, Verification and Substantiation - Field Assistance, FA, Employees and removed Reminders in paragraphs (2) and (3).
IRM 5.19.1.2.6.4.3, Financial Analysis, Verification and Substantiation - ACS, ACSS and CSCO Employees Added exceptions for FERDI accounts.
IRM 5.19.1.2.6.5, Currently Not Collectible, CNC Removed from IRM 5.19.1, material moved to IRM 5.19.17.
IRM 5.19.1.2.6.5.1, Non-Hardship CNC Closing Codes Removed from IRM 5.19.1, material moved to IRM 5.19.17.
IRM 5.19.1.2.6.5.2, Hardship CNC Closing Codes Removed from IRM 5.19.1, material moved to IRM 5.19.17.
IRM 5.19.1.2.7, Ways to Submit Payments Inserted reminder after bullet list in (1) and inserted new paragraph (6). Renumbered remaining paragraphs.
IRM 5.19.1.2.8, Mandated IAT Tools Revised throughout.
IRM 5.19.1.3.1, Referrals to Manager - All Employees Reorganized throughout.
IRM 5.19.1.3.2.1, General Transfer and Referral Information Removed paragraph (1), moved it to a new subsection and renumbered remaining paragraphs accordingly. Revised paragraph (3) for clarity. Updated paragraphs (1)(d) and (2).
IRM 5.19.1.3.2.1.1, ACS Transfer Information Created new subsection, added paragraph (1) from IRM 5.19.1.3.2.1, and added additional transfer guidance for transferring calls to ACS. Added tables showing both Aspect and IUP transfer numbers throughout. Reorganized paragraphs (3) and (4).
IRM 5.19.1.3.2.2, Collection Due Process (CDP) and CAP Form 9423 Added new paragraph (3).
IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS) Reorganized throughout.
IRM 5.19.1.3.2.4, Revenue Officer (RO) Assignment Reorganized throughout.
IRM 5.19.1.3.2.5, Referring Taxpayers to Taxpayer Assistance Center (TAC) Offices Reorganized throughout.
IRM 5.19.1.3.3, For AM Employees New section.
IRM 5.19.1.3.4, For All ACS Employees Added table showing both Aspect and IUP transfer numbers under paragraph (2).
IRM 5.19.1.3.4.1, Multilingual Services Added table showing both Aspect and IUP transfer numbers under paragraph (3). Converted bullet list under paragraph (6) to a table.
IRM 5.19.1.3.4.2, Tax Law Inquiry Inserted new paragraph (1) to provide Filing Season Assistance guidance. Renumbered remaining paragraphs accordingly. Updated paragraph (2) to show that existing guidance is for Post-Filing Season Guidance. Revised paragraphs (3) through (5) for clarity.
IRM 5.19.1.3.4.2.1, Tax Law Inquiry Topic is Handled by AM Revised for clarity. Added table showing both Aspect and IUP transfer numbers under paragraph (1).
IRM 5.19.1.3.4.2.2, Tax Law Inquiry Topic is NOT Handled by AM and TP has Internet Access Updated paragraph (1). Added table showing both Aspect and IUP transfer numbers under paragraph (3).
IRM 5.19.1.3.4.2.3, Tax Law Inquiry Topic is Not Handled by AM and Taxpayer Does Not have Internet Access Updated paragraph (1). Added table showing both Aspect and IUP transfer numbers under paragraph (2).
IRM 5.19.1.3.4.3.1, Account Issues Added table showing both Aspect and IUP transfer numbers from under paragraph (1). Deleted paragraph (2) and renumbered remaining paragraphs accordingly.
IRM 5.19.1.3.4.3.2, Refund Inquiries Revised throughout. Added table showing both Aspect and IUP Transfer numbers under paragraph (1) and (2). Added new paragraph (4).
IRM 5.19.1.3.4.3.5, ACS FERDI Issues Revised throughout. Added table showing both Aspect and IUP Transfer numbers under paragraph (3)(a).
IRM 5.19.1.3.4.3.6, BMF Transfer Added table showing both Aspect and IUP Transfer numbers under paragraph (1).
IRM 5.19.1.3.5, For Other Account Issues Added reference to paragraph (8).
IRM 5.19.1.3.5.3, Non Tax Law Inquiry Updated hyperlinks and added new paragraph for Special Compliance Personnel (SCP) Calls.
IRM 5.19.1.3.5.3.5, ACS FERDI Issues Reorganized throughout.
IRM 5.19.1.3.5.3.7, Special Compliance Personnel (SCP) Calls New section
IRM 5.19.1.3.6, For Other Account Issues Changed title to For Other Account Issues Requiring Referrals or Redirect. Added new paragraph (2). Renumbered remaining paragraphs and reorganized throughout.
IRM 5.19.1.4, Balance Due Research and Balance Due Collection First Read Process (CFRP) Revised and reorganized throughout.
IRM 5.19.1.4.1, Account Actions on Referral/Redirects Revised and reorganized throughout.
IRM 5.19.1.4.2, Taxpayer Information Relocated Exception from paragraph (3) to paragraph (1).
IRM 5.19.1.4.3, Determine Correct Tax Liability Reorganized throughout.
IRM 5.19.1.4.3.2, Adjusting Tax for a Balance Due Reorganized paragraph (2)(e).
IRM 5.19.1.4.4.1, Full Compliance Check Reorganized paragraph (3)(c) and updated paragraph (7)(c).
IRM 5.19.1.4.4.1.1, Express Filing Compliance Check New section, updated paragraph (4) and note.
IRM 5.19.1.4.4.1.2, #Express Filing Compliance Check for Automated Programs# New section, updated paragraph (4)
IRM 5.19.1.4.4.3, Balance Due Taxpayer Education (Cause and Cure) Updated paragraph (5).
IRM 5.19.1.5, Balance Due Special Considerations Updated paragraph (1).
IRM 5.19.1.5.1.1, NMF Notice Responses Updated table under paragraph (6)
IRM 5.19.1.5.2.1, Contacts Regarding Insolvency Issues Reorganized paragraph (3)(a) and (5).
IRM 5.19.1.5.2.1.3, Will File Bankruptcy Added exception under paragraph (2).
IRM 5.19.1.5.2.1.4, Insolvency Request for ACS Updated table under paragraph (1).
IRM 5.19.1.5.2.2, Insolvency - Full Pay Within 60 Days/IA Requests on Post-Petition Periods Changed title to Insolvency - Short Term Payment Plan/IA Requests on Post-Petition Periods, reorganized paragraph (3).
IRM 5.19.1.5.3, Deceased Taxpayer Revised paragraph (1)(a). Updated paragraphs (2) and (4)(a).
IRM 5.19.1.5.3.1, Deceased Taxpayer - Balance Due Actions Revised and reorganized paragraph (1)(a) and the table under paragraph (6).
IRM 5.19.1.5.4, TFRP Issues Updated paragraph (1).
IRM 5.19.1.5.4.1, TFRP Bankruptcy Situations Updated paragraph (4)
IRM 5.19.1.5.5.1, BMF TC 130 Procedures Reorganized paragraph (1)(a).
IRM 5.19.1.5.7, Incarcerated Taxpayers Removed from IRM 5.19.1, material moved to IRM 5.19.17. Renumbered remaining subsections.
IRM 5.19.1.5.9, Military Deferment Updated paragraphs (3) and (5).
IRM 5.19.1.5.16, Affordable Care Act Deleted beginning of Note under paragraph (4). Moved paragraphs (2) through (6) to IRM 5.19.1.5.16.1.
IRM 5.19.1.5.16.1, Standalone SRP Changed title to Individual Shared Responsibility Payments, moved paragraphs (1) and (2) to IRM 5.19.1.5.16.2. Inserted new paragraphs (1) through (5) from IRM 5.19.1.5.16.
IRM 5.19.1.5.16.1.1, Standalone SRP New section. Inserted new paragraphs (1) and (2) from IRM 5.19.1.5.16.1.
IRM 5.19.1.5.16.2, Employer Shared Responsibility Provision New section
IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt Updated paragraph (2).
IRM 5.19.1.5.19.10, Taxpayer Contacts Reorganized paragraph (4).
IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification Updated paragraph (2). Inserted new paragraph (3) and renumbered remaining paragraphs accordingly.
IRM 5.19.1.5.21.4, Taxpayer Contacts on Private Debt Collection Accounts Changed title to ACS and FA Taxpayer Contacts on Private Debt Collection Accounts, updated throughout.
IRM 5.19.1.5.21.5, ACSS and CSCO Correspondence on Private Debt Collection Accounts Inserted new paragraph (2).
IRM 5.19.1.5.21.6, Installment Agreements Granted by Private Collection Agencies New section
IRM 5.19.1.5.22, Special Compliance Personnel (SCP) Program New section, updated paragraph (1).
IRM 5.19.1.6, Methods of Payment Was revised for clarity. Added hyperlink to Example under paragraph (3) and updated paragraph (6)..
IRM 5.19.1.6.2, Can Full Pay Balance Due Now (Payoff) Revised throughout.
IRM 5.19.1.6.3, Full Pay Within 60 or 120 Day Agreement Changed title to Short Term Payment Plan Within 120 Days, and revised throughout.
IRM 5.19.1.6.4, Installment Agreement (IA) Changed title to Installment Agreements (IAs), paragraphs (9) and (10) updated to incorporate new Streamlined IA procedures. New paragraph (11) inserted to add new Expanded IA procedures. Remaining paragraphs renumbered. Updated renumbered paragraph (12).
IRM 5.19.1.6.4.1, Determining Appropriate IA Revised and reorganized throughout.
IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement Revised and reorganized throughout.
IRM 5.19.1.6.4.2.1, Lump Sum Payment for IBTF Express ONLY Reorganized paragraph (2)(a) and updated hyperlink in paragraph (3).
IRM 5.19.1.6.4.3, IA Requirements - In Business, Non Trust Fund, and/or Form 1120, U.S. Corporation Income Tax Return Only Revised and reorganized paragraph (1).
IRM 5.19.1.6.4.4, IMF/BMF Related Accounts Revised and reorganized paragraph (2)(e).
IRM 5.19.1.6.4.5, Account Statuses Affecting IAs Revised and reorganized throughout.
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018. Updated paragraphs (5), (5)(a), (5)(b),(7) and (13) to show that ACSS works Forms 13844. Reorganized throughout.
IRM 5.19.1.6.4.6.3, User Fee Payment Transfer/User Fee Abatements Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018.
IRM 5.19.1.6.4.6.4, Reimbursement of User Fee for Qualifying Low-Income Taxpayers Inserted new subsection with instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018
IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria Revised and reorganized throughout.
IRM 5.19.1.6.4.8, IA Managerial Approval Reorganized table under paragraph (2).
IRM 5.19.1.6.4.11, Rejected IA Suspense File Reorganized paragraph (9). Deleted paragraph (10) and renumbered remaining paragraphs accordingly.
IRM 5.19.1.6.4.13, DDIA Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018. Revised and reorganized throughout.
IRM 5.19.1.6.4.13.1, DDIA - , Installment Agreement , and , Installment Agreement Request Corrected title to DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, reorganized paragraph (1), and revised the table under paragraph (6)(a).
IRM 5.19.1.6.4.13.2, Taxpayer Problems With DDIA Revised and reorganized paragraph (1)(b), and added Reminder to paragraph (1)(g).
IRM 5.19.1.6.4.15, Pre-Assessed IA Requests Added definition of pre-assessed IA to paragraph (1). Inserted new paragraph (2), including definition of unassessed IA. Clarified paragraph (16)(c) to specify pre-assessed IA input instructions. Inserted new paragraph (16)(d) with unassessed IA input instructions. Renumbered remaining paragraphs accordingly.
IRM 5.19.1.6.4.18, Payment Skips (Missed Payments) Updated Reminder under paragraph (7).
IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs Updated Note under paragraph (4)(c).
IRM 5.19.1.6.4.19.1, Withdrawal of IA Requests Added note to paragraph (4). Reorganized paragraph (8)(b).
IRM 5.19.1.6.4.20, Adding New Liability to an Existing IA Revised paragraph (3)(a) for clarity. Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018. Revised and reorganized throughout.
IRM 5.19.1.6.4.21, VLSP Revised and reorganized throughout.
IRM 5.19.1.6.4.22, SIAs Over $25,000 Deleted (Obsolete per changes to IRM 5.19.1.6.4).
IRM 5.19.1.6.4.22.1, Revising SIAs Over $25,000 Deleted (Obsolete per changes to IRM 5.19.1.6.4).
IRM 5.19.1.6.4.23.1, CSCO IA Considerations for Individual SRP Modules Revised and reorganized throughout.
IRM 5.19.1.6.5.1, PPIA Requirements Revised and reorganized throughout.
IRM 5.19.1.6.5.2, Procedures for PPIA Revised and reorganized throughout.
IRM 5.19.1.6.5.3.1, Input of PPIAs Revised and reorganized throughout.
IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA Deleted paragraph (2)(l) and subsequent note, as there are no longer restrictions on mirroring SRP modules. Revised and reorganized paragraphs (3)(j) and (l).
IRM 5.19.1.6.7, Mirroring Accounts Converted information from paragraph (1) into an alpha list.
IRM 5.19.1.6.7.1, Front End Mirror Assessments Process for IA and CNC Closures Changed title to Front End Mirror Assessments Process for IA Closures. Front End Mirror Assessments Process for CNC Closures will be located in IRM 5.19.17. Deleted paragraph (2)(l) and subsequent note, as there are no longer restrictions on mirroring SRP modules. Added note under paragraph (3)(c). Clarified procedures for mirroring decedent taxpayers. Revised and reorganized throughout.
IRM 5.19.1.6.7.2, Back End Mirror Assessments Process for IA Closures Deleted paragraph (3)(l) and subsequent note, as there are no longer restrictions on mirroring SRP modules. Clarified procedures for mirroring decedent taxpayers. Revised and reorganized throughout.
IRM 5.19.1.6.8, Online Payment Agreements (OPA) Revised and reorganized throughout.
IRM 5.19.1.6.8.1, OPA Management Action Reports (MAR) Revised and reorganized throughout.
IRM 5.19.1.6.8.2, OPA User Fees Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018. Added note to paragraph (2).
IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection Revised and reorganized throughout.
Exhibit 5.19.1-1, Acronyms, Explanations and Command Codes for IRM 5.19.1 Title changed, revised and reorganized. Updated Acronym Table with SCP and TFRP.
Exhibit 5.19.1-2, W&I Call Flow Changed title to ACS OPA Call Flow. Revised throughout to incorporate OPA Referral procedures.
Exhibit 5.19.1-3, SB/SE Call Flow Changed title to ACS Call Flow.
Exhibit 5.19.1-4, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018.
Exhibit 5.19.1-5, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018.
Exhibit 5.19.1-6, IDRS Input of IAs, CC IAORG Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018.
Exhibit 5.19.1-7, IDRS Input of IAs, CC IAREV Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018.
Exhibit 5.19.1-8, IDRS Input of Pre-Assessed IAs and Full Pay Agreements Updated instructions per user fee changes in the Bipartisan Budget Act (BBA) of 2018. Changed title to IDRS Input of Pre-Assessed IAs and Short Term Payment Plans, and updated Note under paragraph (24).
Exhibit 5.19.1-9, ALNs Updated table showing Multiple Condition Examples and Documentation.
Exhibit, 5.19.1-10, IA Originator Codes Updated originator code definition.
Exhibit 5.19.1-12, OPA Referral Criteria New Exhibit.
Throughout Revised text for editorial changes and updated broken links for consistency.

Effect on Other Documents

IRM 5.19.1 dated 12-26-2017 (effective date 01-08-2018) is superseded. The following IRM Procedural Updates (IPUs) have been incorporated into this IRM: 17U1463, issued on October 18, 2017, and 18U0861, issued on May 25, 2018.

Audience

Small Business Self-Employed (SB/SE) and Wage and Investment (W&I) Compliance, W&I Accounts Management (AM) and Field Assistance employees, who process Balance Due responses.

Effective Date

(09-26-2018)

Kristen E. Bailey
Director, Collection Policy
Small Business/Self Employed

Program Scope and Objectives

  1. The objective of the balance due program is to work responses to balance due notices and work with taxpayers to help them satisfy their outstanding tax liabilities.

  2. Purpose: In general, taxpayer written, phone or face to face contacts related to balance due modules in notice or Taxpayer Delinquent Account (TDA) status will be processed using this IRM.

  3. Audience: These procedures apply to IRS employees who are responsible for the processing of Campus balance due responses. These employees are located in both the Small Business/Self-Employed (SB/SE) and Wage & Investment (W&I) business operating divisions in the following functions:

    • Automated Collection System (ACS) and ACS Support (ACSS)

    • Compliance Services Collection Operation (CSCO)

    • Field Assistance (FA) Offices

    • Accounts Management (AM)

  4. Policy Owner: Director, Collection Policy.

  5. Program Owner: Collection Policy, Case Resolution Alternatives (CRA).

  6. Primary Stakeholders:

    • ACS and ACSS employees,

    • AM employees,

    • CSCO employees, and

    • FA employees.

  7. Program Goals: This IRM provides the fundamental knowledge and procedural guidance for employees who work balance due responses. By following the processes and procedures provided by this IRM, employees will process balance due responses in a manner that follows IRS policy and procedures while promoting the best interests of the Government.

Background

  1. This IRM 5.19.1, Liability Collection, Balance Due, provides directions and guidelines for working the balance due program. The procedures contained in this section provide guidance for employees to help taxpayers determine the best way to resolve their outstanding balance(s) due. This section also provides guidance on various situations that employees may encounter and how to resolve them.

  2. Installment Agreements (IAs) are arrangements by which the Internal Revenue Service allows taxpayers to pay liabilities over time. Taxpayers should be encouraged to pay the liability in full to avoid the costs of an IA, which include a user fee, accrual of penalties and interest, and the possible filing of a Notice of Federal Tax Lien (NFTL). If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, Partial Payment Installment Agreements (PPIAs) may be granted. During the course of IAs, penalties and interest continue to accrue. No levies may be served while an IA is pending, in effect, or for 30 days following rejection or termination and the appeal period if the rejection or termination is timely appealed.

Authority

  1. The authorities for this IRM include:

    • IRC 6159, Agreements for Payment of Tax Liability in Installments.

    • Treasury Reg § 301.6343

  2. Per Policy Statement 5-1: A tax system based on voluntary assessment would not be viable without enforcement programs to ensure compliance. The Service is committed to educating and assisting taxpayers who make a good faith effort to comply. However, enforcement action should be taken promptly, in accordance with Internal Revenue Manual guidelines, against taxpayers who have not shown a good faith effort to comply. Promotion of long-term voluntary compliance is a basic goal of the Service, and in reaching this goal, the Service will be cognizant not only of taxpayers’ obligations under our system of taxation but also of their rights.

  3. Per Policy Statement 5-2: We will actively assist taxpayers who try to comply with the law, and work to continually improve the quality of our systems and service to meet the needs of our customers. All taxpayers, whether delinquent or fully compliant, are entitled to prompt and professional service whenever they deal with Service employees. The public as a whole is our customer, not just delinquent taxpayers. Our customers expect us to promote voluntary compliance by ensuring that all promptly pay their fair share.

  4. IRC 6502 provides procedures for the ten year CSED.

  5. The IRS Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements for all IRS employees working tax related matters.

Roles and Responsibilities

  1. The Director, Collection Policy, is responsible for all policy and procedures related to balance due programs. They are responsible for overseeing program coordination for Campus procedures related to balance due programs. They work closely with Campus Collection directorships and operations in each campus as primary contact and support for balance due.

  2. The Operations Manager is responsible for managing remote collection activities including telephone, correspondence and face-to-face transactions, following the procedures in this IRM. They oversee department, team and employee responses to taxpayer inquiries and responses concerning balances due. They oversee department, team and employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

  3. The Department manager is responsible for overseeing team and employee responses to taxpayer inquires and responses concerning balances due, following the procedures in this IRM. They oversee team and employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

  4. The Team manager is responsible for overseeing employee responses to taxpayer inquiries and responses concerning taxpayer delinquent return accounts and investigations, following the procedures in this IRM. They oversees employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

  5. Employees who process balance due responses are responsible for responding to taxpayer inquiries and responses concerning balance due accounts, following the procedures in this IRM.

Program Management and Review

  1. Program Reviews: Operational and program reviews are conducted to ensure that case actions are in accordance with the procedures in this IRM.

  2. Program Reports: The following daily and weekly reports are generated by management, and can assist with evaluating the performance of the balance due program:

    • Embedded Quality Review System (EQRS) Reports.

    • National Quality Review System (NQRS) Reports.

    • Accounts Management Services (AMS) Reports.

    • ACS Reports.

    • Monthly Monitoring Report (MMR).

    • Work Planning & Control (WP&C) Reports.

    • Case Control Activity System (CCA) Reports.

    • Collection Activity Report (CAR)

  3. Monthly Installment Agreement Trend Report. Sourced from the CAR (CAR), CRA generates and reviews a monthly IA trend report that captures data on the various types of IAs and compares year over year data on IA inventory levels, the number of IAs initiated, default rates, full pay rates, and dollars collected. Any anomalies are identified and researched for potential causes. Negative trends are identified and causes addressed.

  4. Program Effectiveness: The program results are housed on the Collection Program and Campus Reports SharePoint site in the Monthly Monitoring Report (MMR).The MMR captures NQRS results to show monthly and cumulative stats. Evaluative (EQRS) and national (NQRS) quality reviews and consistency reviews are routinely conducted, along with Headquarters reviews to ensure case actions are timely and in accordance with the procedures in this IRM.

    1. Phone and paper cases are routinely reviewed by Centralized Quality Review System (CQRS) and Program Analysis System (PAS) to ensure case actions are timely and in accordance with the procedures in this IRM.

    2. Case reviews are conducted by managers to ensure compliance with this IRM.

    3. Operational reviews are conducted by the Department and Operation Managers annually to evaluate program delivery, conformance to administrative requirements and ensure compliance with this IRM.

    4. Headquarters Collection Policy, including CRA, will conduct ad hoc IA program reviews as necessary to verify compliance with IRM requirements, address TIGTA/GAO findings, and address any trends that appear.

Program Controls

  1. Incoming telephone calls are distributed to telephone representatives using the Unified Contact Center Environment (UCCE) system.

  2. Taxpayer responses and other inventory are loaded to AMS and then distributed to correspondence tax examiners. AMS tracks employee actions and is monitored by Operation, Department, and Front-Line managers along with Collection HQ employees.

  3. Employees should ensure that taxpayer conditions meet requirements for Streamlined or In-Business Express installment agreement processing criteria and that there are no unfiled returns. Certain case dispositions (including non-streamlined IAs, certain adjustments and currently not collectable (CNC) closures) require managerial approval.

  4. The Integrated Data Retrieval System (IDRS) programming ensures that all open balance due modules on IDRS in a notice or collection status are included when an IA is input.

  5. Independent Administrative Review is required of all rejected IA proposals, and all rejection, default and termination decisions are subject to appeal procedures.

  6. Managers are required to follow program management procedures and controls addressed in:

    • IRM 1.4.11, Field Assistance Guide for Managers

    • IRM 1.4.20, Filing & Payment Compliance Managers Handbook

    • IRM 1.4.16, Accounts Management Guide for Managers

  7. CP 508C and lists of Passport Certifications will be retained for 15 years from date of issuance.

Acronyms

  1. Refer to Exhibit 5.19.1-1, Acronyms and Explanations for IRM 5.19.1, for a list of acronyms.

Related Resources

  1. While many topics are touched upon in this chapter, comprehensive guidance about all of them cannot always be included here. As you use this chapter, remain alert for references to other resources, such as related IRMs and websites. Access that guidance as needed to ensure a thorough understanding of topics.

  2. Additional resources can be found as applicable in:

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates

    • IRM 5.19.2, Individual Master File (IMF) Return Delinquency

    • IRM 5.19.3, Backup Withholding Program

    • IRM 5.19.4, Enforcement Action

    • IRM 5.19.5, ACS Inventory

    • IRM 5.19.6, ACS Support

    • IRM 5.19.8, Collection Appeal Rights

    • IRM 5.19.9, Automated Levy Programs

    • IRM 5.19.10, Collection Operations Transcript Processing

    • IRM 5.19.11, Withholding Compliance Program

    • IRM 5.19.13, Campus Procedures for Securing Financial Information

    • IRM 5.19.16, Compliance Services Collection Operations (CSCO) Clerical Procedures

    • IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise

    • IRM 5.19.18, Federal Employee/Retiree Delinquency Initiative (FERDI)

    • IRM 5.19.19, Campus Compliance International Case Processing (CCICP)

    • IRM 5.19.21, Campus Procedures for Handling Identity Theft

    • IRM 5.19.22, Business Master File (BMF) Return Delinquency

    • IRM 21.1, Accounts Management and Compliance Services Operations

    • IRM 21.2, Systems and Research Programs

    • IRM 21.3, Taxpayer Contacts

    • IRM 21.4, Refund Inquiries

    • IRM 21.5, Account Resolution

    • IRM 21.6, Individual Tax Returns

    • IRM 21.7, Business Tax Returns and Non-Master File Accounts

    • IRM 21.10, Quality Assurance

    • IRM 20.1, Penalty Handbook

    • IRM 20.2, Interest

    • Document 6209, IRS Processing Codes and Information

  3. Employees may also find the following information helpful:

    • Servicewide Electronic Research Program (SERP)

    • Servicewide Notice Information Program (SNIP)

    • Correspondex Letters

    • Integrated Automation Technologies (IAT) Tools

Balance Due Overview

  1. Assisting taxpayers in resolving their balance due account(s) is the responsibility of all contact employees, whether speaking with a taxpayer or answering correspondence.

    Note:

    The IRS formally adopted a Taxpayer Bill of Rights in June 2014, which provides the nation’s taxpayers with a better understanding of their rights and helps reinforce the fairness of the tax system. In 2015, Congress charged the Commissioner with ensuring IRS employees are familiar with and act in accord with the taxpayer rights as afforded by the Code. IRC 7803(a)(3). IRS employees must be informed about taxpayer rights and be conscientious in the performance of their duties to honor, respect and effectively communicate those rights which may aid in reducing taxpayer burden. See Pub 1, Your Rights As A Taxpayer, or IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS), for more information. Also, see Taxpayer Bill of Rights FAQs.

  2. A balance due account occurs when the taxpayer has an outstanding liability for taxes, penalties and/or interest.

  3. Balance due accounts are automatically monitored through computer analysis and placed in a specific status based on age and/or activities.

  4. As a result of computer analysis, several notices are generated to the taxpayer informing them of the balance due outstanding liability.

  5. When a taxpayer balance due inquiry is received, it is important you are aware of the Master File (MF) and Collection Status Codes and Definitions to determine whether you should work the account; for detailed information see IRM 5.19.1.3, Referrals or Redirect.

  6. For Automated Collection System (ACS) Incoming Calls, see the Electronic Automated Collection System Guide (e-ACSG) on the Servicewide Electronic Research Project (SERP) under the IRM Supplements tab for procedures and telephone techniques to utilize in addressing all compliance issues and controlling the conversation.

  7. Written requests received in Compliance Services Collection Operations (CSCO) and Automated Collection System Support (ACSS) Operations must be controlled within 21 days from the IRS received date in order for an interim letter to be issued timely. If a case is received from another site/operation without a control, the case must be controlled within 5 days of CSCO received date to be considered timely. GII exception prints will be considered "from another site" . When a final response cannot be initiated within 30 days, an interim response will be initiated by the 30th calendar day from the IRS received date. Sites using Accounts Management System (AMS) for controlling and monitoring inventory follow AMS guidelines for case control and acknowledgment of taxpayer correspondence. If correspondence is received from a previous area after the 30 days expires and no interim letter was issued, you must send an interim letter within five business days of receipt in your area. Subsequent interims may be required if you are unable to respond as promised, see IRM 21.3.3.4.2.2, Interim Responses. Follow all other Integrated Data Retrieval System (IDRS) control procedures in IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) — Control Procedures.

    Exception:

    W&I CSCO ONLY: For peak processing periods, the target time frame for working cases to closure and sending a final response, if required is extended to 45 days. An interim response is still required by the 30th day. (Peak processing time frames can be found in the W&I CSCO Operating Guidelines.)

  8. IAs, and other work closed by individual employees, must be marked for disposal when work is completed. However, Streamlined IA (SIA) requests (except Direct Debit Installment Agreement (DDIA)) submitted on Form 9465, Installment Agreement Request, or other work processed in bulk through special applications, such as the Generalized IDRS Interface (GII), may be secured together in batches. Batches may be marked "Destroy" with a cover sheet.

  9. Throughout the IRM, all deadline dates, target dates or parameters are counted by calendar days, not business days. Start counting with the first day you notify the taxpayer (by telephone or letter), or the first day of actions taken (i.e., IDRS, AMS, etc.…), or the first day of entering follow-up items on ACS.

    Example:

    If the calculated call-back date falls on a Saturday, Sunday or Holiday, the taxpayers call-back date will be the next business day. Remember to add an additional 4 days to your follow-up on ACS.

    Example:

    Other follow-up time added to your deadline date are additional 15 days follow-up date for decedent cases and additional 30 days follow-up date for "generally" all others.

    Example:

    When providing the taxpayer a deadline date, calculate the time frame leading up to the deadline by starting with the current day. The total follow-up time could include a grace period of up to 5 days.

    Example:

    When sending a letter requesting additional information from the taxpayer, allow up to 30 days for the taxpayer to respond and 15 days for mail delivery, for a total of 45 days.

Submitting SERP Feedback

  1. To maintain the accuracy of IRM 5.19.1, Balance Due, send corrections and change requests to Headquarters, via the SERP Feedback Application (Database). The SERP Staff forwards SERP Feedbacks to the appropriate Content Owner(s) in Headquarters for consideration of the requested IRM procedural changes. The Feedback system should not be used to ask questions that should be answered by your manager, lead or P&A staff or to rebut an employee or product review.

    Note:

    Before you submit corrections/change requests for IRM 5.19.1, Balance Due, via the SERP Feedback Application (Database), you must consult your Lead or Manager for assistance to verify if this is a valid request for an IRM change/correction.

  2. DO NOT use the SERP Feedback Form to request changes to the following:

    • Letters - Use the Green Button at the Office of Taxpayer correspondence (OTC) website. See IRM 25.13.1.2, Request for New and Revised Taxpayer Correspondence Products - Request Services Process.

    • Notices - Use the Green Button at the OTC website. See IRM 25.13.1.2, Request for New and Revised Taxpayer Correspondence Products - Request Services Process.

    • Policy, policy statements, tax law and regulations should be submitted to Headquarters through the Planning and Analysis staff at your site.

    • Suggestions - Use the electronic Employee Suggestion Program. Please follow the instructions on the IRS Intranet.

  3. Always review prior SERP Feedbacks and responses to ensure your issue has not already been addressed. See (f) below.

    1. In all functional areas, change requests must be approved by the first line manager or designee and the responsible Planning and Analysis Analyst before submission to Headquarters. All change requests submitted by Quality Review Staff must be approved by the first line manager.

    2. The SERP Feedback Application (Database) procedures must be followed by all field employees as well as the Quality Review Program Staff and are posted on the SERP Feedback Home page.

    3. Before submission, re-examine the requested change(s) and cite supporting documentation. Be specific. Avoid the use of general terms such as "revise procedures" . Submit only one issue/topic per SERP Feedback.

    4. Complete all required fields on the SERP Feedback Form. The Identification field MUST be completed or the feedback will not be forwarded.

    5. All changes are considered, but all may not be accepted. Accepted changes are published on SERP as IRM Procedural Updates (IPUs).

    6. Determine whether your issue was previously raised. You can view responses to SERP Feedbacks via Previous Feedback Lookup by selecting IRM or topic.

Disclosure Overview: Verifying Identity of Contact Party

  1. For purposes of identification and to prevent unauthorized disclosures of tax information, follow the chart below:

    If the contact is … Then ...
    Taxpayer See IRM 21.1.3.2.3, Required Taxpayer Authentication.
    Taxpayers who filed jointly but are now divorced or separated Returns and return information of individuals filing income tax returns jointly may be disclosed to either of the individuals with respect to whom the return is filed. See IRM 11.3.2.4.1, Individuals, for rules that apply for joint taxpayers who are no longer married or no longer reside in the same household. See IRM 5.19.5.4.11.1(5), ACS and Disclosure, for examples.
    Mailing and Faxing Tax Account Information See IRM 21.1.3.9(2), Mailing and Faxing Tax Account Information, and IRM 11.3.1.11, Facsimile Transmission of Tax Information.
    Power of Attorney (POA), Form 2848, Power of Attorney and Declaration of Representative See IRM 11.3.3, Disclosure to Designees and Practitioners, and IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication.
    Tax Information Authorization (TIA) - Form 8821, Tax Information Authorization See IRM 11.3.3.2, Disclosure to Third Parties Based Upon Taxpayer Request for Assistance. See IRM 11.3.3.3(1), Distinction Between Disclosure to Designees and the Conference and Practice Requirements. See IRM 11.3.3.3(2), Distinction Between Disclosure to Designees and the Conference and Practice Requirements.

    Note:

    ACS Call Site employees, refer to IRM 5.19.1.2.2.1, ACS Call Site Instructions for Form 8821, Taxpayer Information Authorization.

    Oral Disclosure Consent See IRM 11.3.3.2.1, Requirements for Oral Authorization.
    Parent/Guardian of Minor See IRM 11.3.2.4.10, Minors.
    Hearing Impaired (including telecommunications device for the deaf (TDD) equipment See IRM 11.3.2.3.2(2), Requirements for Verbal or Electronic Requests.
    Language or Sign Interpreter See IRM 11.3.2.3.2(2), Requirements for Verbal or Electronic Requests.
    Checkbox Designee See IRM 11.3.3.2.1, Requirements for Oral Authorization, and IRM 21.1.3.3.1, Third Party Designee Authentication.
    Third Party: Levy Source See IRM 11.3.2.2, General Rules. See IRM 11.3.21.2(7), Background.
    Third party: Lien Payoff Refer Financial institutions requesting a lien payoff/release to the Lien Unit at: 800-913-6050 See IRM 11.3.11.10, Disclosure of Amount of Outstanding Lien, and IRM 5.19.4.6.5, Lien Releases.

    Note:

    Advise taxpayers who have an IA to continue making their scheduled payments until the balance is paid.

    Third party: claiming a willingness and means to pay the balance due See IRM 11.3.21.2(7)(e), Background.

    Note:

    Wage levy sources requesting a levy payoff/release must be advised to continue sending payments until a levy release is received.

    Third party requesting account balance where the Notice of Levy or ACS letter advises the taxpayer to call for a detailed calculation of penalty and/or interest. See IRM 11.3.21.2(7)(e), Background.

    Note:

    Calculate and assess the restricted penalty and/or interest. See IRM 20.2.1.5, Normal and Restricted Interest, for additional information on the manual computation of restricted interest and updating modules.

    Third Party claiming a material interest See IRM 11.3.2.4, Persons Who May Have Access to Returns and Return Information Pursuant to IRC 6103(e).
    Responsible Persons assessed a Trust Fund Recovery Penalty (TFRP) See IRM 11.3.2.4.13, Trust Fund Recovery Penalties.

    Note:

    If making out-calls and there is a valid POA on file, you must contact the POA and not the taxpayer.

  2. IRC 6304 precludes, among other things, the Service from communicating with a represented taxpayer in connection with the collection of any unpaid tax unless the taxpayer has given prior consent to that communication. In accordance with the purpose of IRC 6304, a Service employee may not work directly with a represented taxpayer to resolve an issue on the taxpayer’s account unless:

    • The taxpayer initiates the contact to resolve the issue on the account,

    • The taxpayer expresses a specific desire to resolve the issue without the involvement of the power of attorney after the Service employee has advised the taxpayer of the current representation, and

    • The taxpayer’s decision to not use their representative, per Centralized Authorization File (CAF), for that tax period and work directly with the Service to resolve the issue is properly documented on AMS for each tax period.

    Note:

    See IRM 11.3.3.1.1(5), General Requirements for Disclosure to Designee.

  3. If a POA is on file, document AMS comments to indicate the taxpayer was advised they have a POA on file and they chose to work directly with the Service to resolve their account. Documentation is required only once for a tax period.

  4. See IRM 5.19.1.2.2.2, ACS Call Site - Additional Taxpayer Authentication, when additional taxpayer authentication is necessary.

ACS Call Site Instructions for Form 8821, Taxpayer Information Authorization
  1. Third parties who are authorized on a Form 8821, Tax Information Authorization, may review return or account information for the specified periods on the form, but are not authorized to act on behalf of the taxpayer (including resolving balance due cases).

  2. Therefore, ACS Call Sites will no longer accept faxed Form 8821, Tax Information Authorization. Advise callers to submit Form 8821, Tax Information Authorization to the appropriate CAF unit to be listed as an authorized party to receive account information. Forms are processed within 5 business days. Please refer to IRM 21.3.7.1.4, Processing Time Frames, for CAF processing requirements.

    Exception:

    These procedures do not apply if either the taxpayer is on the line or the caller is authorized on a valid Form 2848, Power of Attorney and Declaration of Representative. Once the taxpayer or their authorized representative satisfies the appropriate disclosure probes per IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party, then assist them to resolve the balance due per the procedures in this manual.

  3. If a Form 8821 caller requests account information, advise them they may request account information using one of the following self-help methods:

    1. Refer the caller to IRS.gove-Services - Online Tools for Tax Professionals page. Tax professionals (Circular 230 practitioners, including Attorneys, Certified Public Accountants, Enrolled Agents, and Reporting Agents) may register to use the Transcript Delivery System (TDS).

    2. The following transcript products may be requested for individual taxpayers:

      Transcript Product
      Account Transcripts
      Tax Return Transcripts
      Record of Account
      Wage & Income Documents
      Verification of Non-Filing Letters
    3. The following transcript products may be requested for business taxpayers:

      Transcript Product
      Account Transcripts
      Tax Return Transcripts
      Record of Account
    4. See IRM 21.2.3.4, TDS Transcript Delivery Methods, for available TDS transcript delivery methods. There is no charge to use TDS.

      Note:

      If TDS is not available, see (e) below.

    5. Submit paper Form 4506-T, Request for Transcript of Tax Return, to request any of the five transcript products listed above. There is no charge for this form. Expected processing time is 10 calendar days from receipt.

  4. If the Form 8821 caller is unable to use self-help methods, (e.g., information requested is not available on transcripts or caller is ineligible to access the TDS), advise them you will transfer them to another area that can better assist them. Transfer call to the appropriate Transcript Request line using the Telephone Transfer Guide.

ACS Call Site - Additional Taxpayer Authentication
  1. If a taxpayer requests account information and there is no open account issue OR a notice has not been issued on the account, then more research is needed to prevent unauthorized disclosure. Examples of open account issues could include the following:

    • Balance due issues.

    • Taxpayer Delinquency Investigation (TDI).

    • IRS initiated correspondence.

    • Amended return filed.

  2. Issues that require additional taxpayer authentication may include:

    • Verbal account information other than refund status, and taxpayer does not have any open account issues or notices.

      Example:

      Calls requesting the prior year Adjusted Gross Income (AGI).

    • Transcript requests with no open account issues or tax account information mailed to him/her at an address different from the address on IDRS.

    • Tax account information, such as a transcript, to be sent by facsimile copy (FAX).

    • Oral statement requests to change an address on an account without an open issue.

      Note:

      If the taxpayer is asking for transcripts (tax account, tax return, record of account, wage and income, verification of non-filing) and you are unable to verify required authentication, advise the caller to submit Form 4506-T, Request for Transcript of Tax Form, to the appropriate Return and Income Verification Services (RAIVS) unit.

    • Verification of estimated tax payments on a module without a filed return can be made to the secondary taxpayer when the preceding year shows a joint return with that same secondary taxpayer and Remittance Transaction Register (RTR) shows the joint ES voucher or joint check showing the intent to make joint ES payments.

      Caution:

      If the taxpayer is requesting verification of estimated tax payments in response to a notice received, see IRM 21.6.3.4.2.3(5), Estimated Tax (ES), for additional information.

  3. The IAT Disclosure Tool assists the user in verifying the identity of a caller and determining if the caller is authorized to receive confidential tax information or represent the taxpayer. ACS employees are highly encouraged to use the IAT Disclosure Tool when additional taxpayer authentication is required or warranted.

  4. There will be times when systemic issues may cause problems with the tool’s performance. When this occurs, ask the taxpayer to provide two or more of the following items:

    1. IMF accounts:

      Additional Authentication Probes
      Filing status on return in question
      Spouse's date of birth
      Child's/children's date(s) of birth
      Amount of income reported on last return or tax due on return
      Employers shown on taxpayer's Form W-2
      Financial institutions from taxpayer's Form 1099-INT or Form 1099-DIV
      Number of exemptions claimed on last return or on return in question
      Preparer, paid/unpaid, if any
      Expected refund amount (within $100) unless computed by IRS
      Any other verifiable items from the return/account
    2. BMF accounts:

      Additional Authentication Probes
      Federal income tax withheld/Social Security wages (Form 941)
      Gross receipts or sales/Taxable income (Form 1120)
      Total assets/Total liabilities (Form 990)
      Any other verifiable items from the return/account
  5. Perform manual research to verify the caller’s responses.

  6. When considering what probes to ask, determine which probes would most likely be known by an authorized party. Try to eliminate those that may be easily discoverable or guessed.

  7. See IRM 21.1.3.2.4, Additional Taxpayer Authentication, for further information.

Recommended ACS Call Flow

  1. After verifying disclosure and securing necessary information (best contact phone number & levy sources if needed), remind the taxpayer of the outstanding balance(s) and ask for their proposal of payment (full payment, Short Term Payment Plan or IA).

    Type of Account Conversational Strategy
    Delinquent Account "Our records indicate you have a balance due of $_____ for tax years _____, ______ and ______as of _______. Are you calling to full pay the account or make monthly arrangements to pay?"

    Follow the table below for proper resolution:

    If ... Then ...
    The taxpayer proposes Short Term Payment Plan (including offset from a refund return), See IRM 5.19.1.2.6.2.3, Short Term Payment Plans - ACS, ACSS and CSCO Employees, and IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.
    The taxpayer states he/she cannot resolve the account today, but is wanting to make payment arrangements or pay on a monthly basis and they are fully compliant, The CR should set up SIA if the dollar amount the taxpayer is proposing meets requirements. If not, the CR should follow appropriate procedures for NSIAs. See IRM 5.19.1.6.4, Installment Agreements (IAs).
    The taxpayer states he/she cannot resolve the account today, but is wanting to make payment arrangements or pay on a monthly basis and they are missing return(s), Advise taxpayer that IA cannot be considered until missing returns have been filed. Advise taxpayer to submit tax returns with Form 9465, Installment Agreement Request, and Form 433-F, Collection Information Statement (if necessary). See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

    Note:

    You do not need to ask the taxpayer to submit Form 9465, Installment Agreement Request, if the proposed IA Terms are documented in AMS comments.

    The taxpayer states that he/she cannot even afford an IA, Determine if the taxpayer is eligible for a CNC or an OIC. See IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers In Compromise.
    The taxpayer disagrees with the liability, See IRM 5.19.1.4.3, Determine Correct Tax Liability
    The taxpayer refuses to pay, See IRM 5.19.1.6.1, Taxpayer Refuses to Pay.

Documenting Account Actions

  1. Whenever you work a case, you are required to document actions taken on taxpayer's accounts, as well as any actions promised by the taxpayer. Be sure to annotate the date the promised action is to occur. Documentation should also include results of tools utilized to determine IA amounts such as from the Integrated Automation Technologies (IAT) Compliance Suite Payment Calculator, Return Delinquency results from IAT, and Reasonable Cause Assistor (RCA) etc.

    Reminder:

    Document AMS when transferring call.

  2. All documentation must be done via AMS, using checklists, or by adding an appropriate issue and narrative. All documentation should be, to the extent possible, completed while the taxpayer is on the phone.

    Note:

    While working paper inventory, if AMS is unavailable, and the case type can be worked to completion via IDRS, work the case on IDRS. When AMS is available, close the AMS control and note AMS: "Case worked on IDRS, AMS down" .

    Note:

    For ACS and ACSS see IRM 5.19.5, ACS Inventory.

    Exception:

    Cases worked through GII. GII does not have the capability to interact with AMS.

  3. Complete and accurate case documentation promotes quality and consistency in working balance due cases. History entries should contain enough information so that any person subsequently reading the history can easily determine what decisions were made, why those decisions were made, what actions were taken and what further actions are required to resolve the case.

  4. Do not use the term "Illegal Tax Protester" (ITP) or similar designations on IDRS, ACS History Codes, or AMS comments. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), IRC 3707, prohibits the use of any tax protester designation to describe the taxpayer. If you identify any such reference, immediately inform your manager. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use. See IRM 25.4, Employee Protection, for further information.

Balance Due Outgoing Correspondence Guidelines

  1. A quality product or response is accurate, timely, and addresses all issues based on the information the taxpayer provided.

  2. Responses must:

    1. Address all taxpayer issues,

    2. Request additional information, if needed, from the taxpayer,

    3. Notify the taxpayer if additional information is needed from outside the Service, and

    4. Be written in plain English (or Spanish, if applicable).

  3. Final response to taxpayer(s) must be initiated by the 30th day from the earliest IRS received date, unless the taxpayer has received an interim contact or interim contact letter has been initiated from us by the 30th day.

  4. Only correspondence received from the taxpayer requesting research, information, or action to his/her account must be answered.

  5. Providing the taxpayer with their current balance due in outgoing correspondence is not required when the taxpayer has made an inquiry such as a request to make payments or where resolution of their balance is being made.

    Note:

    Ensure the taxpayer is aware that penalties and interest will continue to accrue and how they are being assessed.

  6. When a payment agreement requires confirmation by letter, provide the address for the CSCO campus with jurisdiction for both the return address and payment address. Do not provide a lockbox address in any "C" letters. Lockbox will only process payments with the CP 521, Installment Agreement Reminder Notice, or CP 523, Installment Agreement Default Notice.

  7. Occasionally a Service processing error results in an incorrect or unnecessary letter (Letter 2645C, Interim Letter). In such instances, acknowledge the error and include an appropriate apology as part of explanatory correspondence to taxpayer. Include a notation on AMS that you apologized for a service error on a particular date.

  8. The following information should be included in outgoing balance due correspondence addressing IA issues:

    1. Cause and Cure,

    2. Penalties and interest continue to accrue and how they are calculated,

    3. The CSCO campus with jurisdiction mailing address on SERP under Who/Where tab, Collection Pmts/Add/Issues,

    4. Check annotation,

    5. Appropriate forms,

    6. Any refunds due will be applied to the balance due until paid in full,

    7. Envelopes,

    8. Ensure payments are mailed ten days prior to the due date, and

    9. User Fee and eligibility for reduction and possible waiver or reimbursement in User Fee, if certain conditions apply.

      Note:

      If the IA will include Individual Shared Responsibility Payment (SRP) balances under the Affordable Care Act (ACA), include a paragraph that provides taxpayer information about their Individual SRP. See IRM 5.19.1.5.16.1, Standalone SRP.

  9. Regular IA requests per IRM 5.19.1.6.4.12, Input of IA, should include the following:

    1. Terms of the IA, which include the monthly payment and due date,

    2. Inform the taxpayer they will receive a monthly reminder notice,

    3. If you are adding a pending liability to a current IA, you must include a paragraph in the letter advising the taxpayer a bill is issued when the tax is assessed, as required by law, but no collection action is taken once we input the IA and no response to the notice is required, and

    4. All information listed in paragraph (8) above, a) through i).

  10. DDIA requests, IRM 5.19.1.6.4.13.1, DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, should include the following:

    1. Terms of the DDIA, including the start date,

      Exception:

      The DDIA confirmation letter is not required to include the first payment date when establishing a pre-assessed DDIA. This is because the DDIA cannot begin until the return is assessed. See IRM 5.19.1.6.4.15(13), Pre-Assessed IA Requests.

    2. Advise the taxpayer monthly reminder notices are not issued on DDIAs. Advise the taxpayer to keep their records up to date to avoid a default of their IA,

    3. If the DDIA is pre-assessed, inform the taxpayer that their deductions will not begin until after they receive their first notice of balance due,

    4. If the taxpayer's request does not include necessary information to establish a DDIA, notify the taxpayer a DDIA could not be established due to insufficient information and they are required to send in their monthly payments until we receive complete information to establish the DDIA,

    5. User fee and eligibility for reduction and possible waiver or reimbursement of the User Fee, if certain conditions apply, and

    6. Also include information listed in paragraph (8) a), b), c), d), f), g) and i) above.

  11. Payroll Deduction Installment Agreement (PDIA) requests IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement, should include the following:

    1. Inform the taxpayer the PDIA is established and payments will continue to be made until the account is full paid,

    2. Inform the taxpayer that even though the payments are being sent by their employer, they will receive a monthly reminder notice for their records,

    3. If the taxpayer's request does not include the necessary information to establish a PDIA, notify the taxpayer a PDIA could not be established due to insufficient information and they are required to send in their monthly payments until we receive complete information to establish the PDIA,

      Note:

      Clearly explain what information was insufficient when corresponding with the taxpayer.

    4. Inform the taxpayer the IRS will inform the employer when their account has been full paid,

    5. Inform the taxpayer it is their responsibility to advise us in any changes to their employment,

    6. User fee and eligibility for reduction and possible waiver or reimbursement of the User Fee, if certain conditions apply, and

    7. Include information listed in paragraph (8) a) through i) above.

  12. Up to 120 day Short Term Payment Plan, IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days, should include the following:

    1. Inform the taxpayer of the balance due with penalties and interest figured to the payoff date,

      Note:

      On unassessed balances, inform that taxpayer that we accept their request for a Short Term Payment Plan but cannot provide them with a payoff amount. Advise the taxpayer within 6 to 8 weeks they will receive a balance due notice. At that time, they should contact our office for a payoff amount.

    2. Request missing returns, if applicable, and

    3. Include information listed in paragraph (8) a), b), c), d), g) and h) above.

  13. Currently Not Collectible (CNC) closures, IRM 5.19.17.2.1, CNC and OIC, should include the following:

    1. Inform the taxpayer that collection action will not be taken at this time,

    2. Inform the taxpayer an annual notice will be received reminding them of their balance due,

    3. Inform the taxpayer they can make voluntary payments, and

    4. Include information listed in paragraph (8) a), b), c), d) and g) above.

  14. All other issues should be handled accordingly and address the taxpayer's requests and concerns.

  15. If multiple issues are involved, select the letter that best addresses the main issue. Use open paragraphs to address any additional IRS or taxpayer issues.

    Note:

    When an open paragraph is used, a manager or lead should approve the paragraph for content, spelling and grammar.

  16. When letters are generated through GII programs, acknowledgement of payment made with a request is not required. Appropriate Return Address codes have been approved and do not follow paragraph (6) above or IRM 5.19.1.2.7, Ways to Make Payments.

  17. For a complete list of Correspondex letters go to SERP under Forms/Letters/Pubs.

Case Processing Authority Levels

  1. This section provides the authority levels for case processing by the type of disposition for each functional area.

  2. For specific guidance on what is required prior to disposition of case, employees must follow the procedures in the appropriate IRM section or subsection.

  3. For balances over the business unit dollar criteria, see IRM 5.19.1.4.1, Account Actions on Referrals/Redirects.

  4. If pre-assessed/unassessed taxes are included, the pre-assessed/unassessed liability plus unpaid balance of assessments (CC SUMRY) must be within the applicable dollar criteria shown.

  5. For In-Business Trust Fund accounts, employees in AM, CSCO, FA, ACS and ACSS are only authorized to establish IBTF Express Agreements. See IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, and IRM 5.19.1.6.4.2.1, Lump Sum Payment for IBTF Express ONLY.

  6. All employees are required to secure managerial approval when appropriate, as directed by specific IRM procedures.

Tolerance and Deferral - All Employees
  1. Tolerance: The following accounts may be closed as CNC (cc 09), tolerance without further action, where the aggregate unpaid balance, including accruals, is less than ≡ ≡ ≡ ≡ ≡ :

    • IMF (except MFT 55 - ≡ )

    • BMF (except MFT 13 - ≡ ≡ ≡ )

    • NMF

    • IRAF

    Note:

    If Individual SRPs are included with other MFT 30 or MFT 31 modules on an account that meets tolerance criteria, close all modules as CNC (cc 09).

  2. Deferral: There are instances throughout the IRM where you are required to apply deferral levels (aggregate assessed balance (AAB) plus accruals) to determine the next appropriate action. Refer to the following for a list of MF types and deferral amounts:

    • IMF - ≡ ≡ ≡ ≡ , (except MFT 55 - ≡ ≡ ≡ ≡ )

    • BMF - ≡ ≡ ≡ ≡ , (except MFT 13 - ≡ )

    • NMF - ≡ ≡ ≡ ≡ , (except ≡ ≡ ≡ for NMF accounts on telephone excise tax when the SSN is determined)

    • Individual Retirement Account File (IRAF) - ≡ ≡

Short Term Payment Plans
  1. The following sections provide the dollar authority levels and duration of Short Term Payment Plans by business unit:

    • Accounts Management employees - IRM 5.19.1.2.6.2.1, Short Term Payment Plans - Accounts Management, AM, Employees.

    • Field Assistance employees - IRM 5.19.1.2.6.2.2, Short Term Payment Plans - Field Assistance, FA, Employees.

    • ACS, ACSS and CSCO employees - IRM 5.19.1.2.6.2.3, Short Term Payment Plans - ACS, ACSS and CSCO Employees.

Short Term Payment Plans - Accounts Management, AM, Employees
  1. AM employees are subject to the following limitations for the specific case types mentioned:

  2. Short Term Payment Plans - IMF & BMF Out of Business Sole Proprietors:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status ≡ ≡ ≡ ≡ and less AAB (CC SUMRY) No more than 120 days total (including previous Short Term Payment Plans, if previously granted)

    Note:

    For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.

Short Term Payment Plans - Field Assistance, FA, Employees
  1. FA employees are subject to the following limitations for the specific case types mentioned.

  2. Short Term Payment Plans - IMF & BMF Out of Business Sole Proprietors:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status or in ST 22 or ST 24, ≡ ≡ ≡ ≡ ≡ and less AAB (CC SUMRY) No more than 120 days total (including previous Short Term Payment Plans, if previously granted)
         

    Note:

    For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.

Short Term Payment Plans - ACS, ACSS and CSCO Employees
  1. ACS, ACSS and CSCO employees are subject to the following limitations for the specific case types mentioned.

    Exception:

    Federal Employee/Retiree Delinquency Initiative (FERDI) employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Review.

  2. Short Term Payment Plans - IMF & BMF Out of Business Sole Proprietors:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status or in ST 22 or ST 24, ≡ ≡ ≡ ≡ ≡ ≡ and less AAB (CC SUMRY) No more than 120 days total (including previous Short Term Payment Plans, if previously granted)

    Note:

    For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.

  3. Short Term Payment Plans - BMF In-Business No Trust Fund:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status or in ST 22 or ST 24, ≡ ≡ ≡ ≡ ≡ ≡ ≡ and less AAB (CC SUMRY) No more than 120 days total (including previous Short Term Payment Plans, if previously granted)

    Note:

    For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.

Installment Agreements
  1. For some installment types the dollar authority level and duration of the IA are the same for all business units. See IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, for the dollar authority level and duration for the following types of IAs:

    • Guaranteed

    • Streamlined Installment Agreement (SIA) $25,000 and under

  2. The following sections provide the dollar authority levels and duration of IAs by business unit for SIA Over $25,000, Non-Streamlined Installment Agreements - (NSIA), Partial Pay Installment Agreement, (PPIA) and In-Business Trust Fund (IBTF) Express Agreements.

    • Accounts Management employees - IRM 5.19.1.2.6.3.2, Installment Agreements - Accounts Management, AM, Employees.

    • Field Assistance employees - IRM 5.19.1.2.6.3.3, Installment Agreements - Field Assistance Employees.

    • ACS, ACSS and CSCO employees - IRM 5.19.1.2.6.3.4, Installment Agreements - ACS, ACSS and CSCO Employees.

  3. All employees are required to secure managerial approval when appropriate, as directed by specific IRM procedures.

Installment Agreements - All Employees
  1. All employees are subject to the following limitations for the specific case types mentioned below.

  2. Guaranteed IMF Only:

    Dollar Criteria Duration of IA
    $10,000 and less tax only (excludes P&I) 36 months (will full pay within CSED)

    Note:

    For criteria and procedures for Guaranteed IAs, see IRM 5.19.1.6.4(8), Installment Agreements.

  3. SIAs $25,000 and underand the type of entity is:

    • IMF

    • Out of Business BMF

    • BMF Income Tax ONLY (Form 1120, Form 1065 - Late Filing Penalty):

    Dollar Criteria Duration of IA
    $25,000 and under AAB (CC SUMRY)
    • The AAB balance will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first

    Note:

    For criteria and procedures for SIA $25,000 and under, see IRM 5.19.1.6.4(9), Installment Agreements.

    Note:

    See IRM 5.19.1.6.8, Online Payment Agreements (OPA).

Installment Agreements - Accounts Management, AM, Employees
  1. AM employees are subject to the following limitations for the specific case types mentioned:

  2. Streamlined IAs over $25,000 - IMF and OOB BMF Sole Proprietors: AM employees are not authorized to work SIAs Over $25,000.

  3. NSIA - IMF & Out of Business Sole Proprietors: AM employees are not authorized to work NSIAs.

  4. PPIA - IMF & Out of Business Sole Proprietors: AM employees are not authorized to work PPIAs.

  5. IBTF Express Agreements:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Earlier of 24 months or before CSED

    Note:

    For criteria and procedures for IBTF Express IAs, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

Installment Agreements - Field Assistance, FA, Employees
  1. FA employees are subject to the following limitations for the specific case types mentioned.

  2. Streamlined IAs over $25,000 - IMF and OOB BMF Sole Proprietors:

    Dollar Criteria Duration of IA
    $25,001 - $50,000 AAB (CC SUMRY)
    • The AAB balance will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first

    Note:

    For criteria and procedures for Streamlined IAs over $25,000, see IRM 5.19.1.6.4(10), Installment Agreements.

  3. NSIA - IMF & Out of Business Sole Proprietors:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Will pay within the CSED

    Note:

    For criteria and procedures for NSIAs, see IRM 5.19.1.6.4(11), Installment Agreement.

  4. PPIA - IMF & Out of Business Sole Proprietors:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ AAB (CC SUMRY) Will not full pay within the CSED

    Note:

    For criteria and procedures for PPIAs, see IRM 5.19.1.6.5, PPIA.

  5. IBTF Express Agreements:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Earlier of 24 months or before CSED

    Note:

    For criteria and procedures for IBTF Express IAs, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

Installment Agreements - ACS, ACSS and CSCO Employees
  1. ACS, ACSS and CSCO employees are subject to the following limitations for the specific case types identified below.

  2. Streamlined IAs over $25,000 - IMF and OOB BMF Sole Proprietors:

    Dollar Criteria Duration of IA
    $25,001 - $50,000 AAB (CC SUMRY)
    • The AAB balance will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first

    Note:

    For criteria and procedures for Streamlined IAs over $25,000, see IRM 5.19.1.6.4(10), Installment Agreements.

  3. NSIA - IMF & Out of Business Sole Proprietors:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Will pay within the CSED

    Note:

    For criteria and procedures for NSIAs, see IRM 5.19.1.6.4(11), Installment Agreements.

    Exception:

    FERDI employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Overview.

  4. PPIA - IMF & Out of Business Sole Proprietors:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Will not full pay within the CSED

    Note:

    For criteria and procedures for PPIAs, see IRM 5.19.1.6.5, PPIA.

    Exception:

    FERDI employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Overview.

  5. IBTF Express Agreements:

    Dollar Criteria Duration of IA
    Under ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Earlier of 24 months or before CSED

    Note:

    For criteria and procedures for IBTF Express IAs, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

Financial Analysis, Verification and Substantiation
  1. This section provides the dollar authority levels, by disposition type, for financial analysis, verification and substantiation requirements.

  2. Employees must refer to IRM 5.19.13, Campus Procedures for Securing Financial Information, for Financial Analysis, Verification and Substantiation procedures.

    Exception:

    AM employees do not conduct Financial Analysis.

Financial Analysis, Verification and Substantiation - All Employees
  1. The table below provides guidance to all employees for when financial analysis is needed and when it is necessary to verify and obtain substantiation, by account balance and disposition type:

    Exception:

    AM employees do not conduct Financial Analysis.

    Balance Disposition Financial Analysis needed? Verification and Substantiation Needed?
    Less than ≡ ≡ ≡ ≡ (AAB plus accruals) (IMF) CNC No Not Applicable
    ≡ ≡ ≡ ≡ ≡ ≡ — ≡ ≡ ≡ NSIA, PPIA, CNC Yes

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    No

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    CNC Exception Processing under ≡ ≡ ≡ CNC No Need to verify basis for Exception Processing (through internal or external sources, or verification from taxpayer) See IRM 5.19.17.2.1.2, CNC Exception Processing.
    Up to $25,000 SIA $25,000 and under No No
Financial Analysis, Verification and Substantiation - Field Assistance, FA, Employees
  1. The table below provides guidance to FA employees for when financial analysis is needed and when it is necessary to verify and obtain substantiation, by account balance and disposition type

  2. NSIA:

    Balance Financial Analysis needed? Verification and Substantiation Needed?
    AAB (CC SUMRY) between ≡ ≡ ≡ ≡ - ≡ ≡ ≡ ≡ ≡ Yes Yes, verify questionable amounts claimed for income or expenses using internal sources or through a telephone call to taxpayer. Paper substantiation is not required. Employees should use sound judgment to determine if the taxpayer’s verbal justifications for income/expense discrepancies provide adequate substantiation.
  3. PPIA & CNC:

    Balance Financial Analysis needed? Verification and Substantiation Needed?
    ≡ ≡ ≡ ≡ ≡ - ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Yes Yes.
    1. Use internal sources to verify assets, income and expenses. Any discrepancies between the assets, income or expenses reported on the CIS and the internal sources used for verification, must be addressed with the taxpayer and documented on the AMS case history.

    2. Paper substantiation is required:

      • If the amount claimed for income or any expenses appears to be unreasonable (per employee judgment) or the expense amounts claimed exceed the ALE standards and allowing these other expenses will result in a PPIA or CNC hardship.

    Reminder:

    Paper substantiation should also be secured in cases where the taxpayer's explanation does not correspond to the internal sources verified.

Financial Analysis, Verification and Substantiation - ACS, ACSS and CSCO Employees
  1. The table below provides guidance to ACS, ACSS and CSCO employees for when financial analysis is needed and when it is necessary to verify and obtain substantiation, by account balance and disposition type

  2. NSIA:

    Balance Financial Analysis needed? Verification and Substantiation Needed?
    ≡ ≡ ≡ ≡ - ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Yes Yes, verify questionable amounts claimed for income or expenses using internal sources or through a telephone call to taxpayer. Paper substantiation is not required. Employees should use sound judgment to determine if the taxpayer’s verbal justifications for income/expense discrepancies provide adequate substantiation.

    Note:

    See IRM 5.19.1.6.4(11), Installment Agreements, for specific guidance.

    Exception:

    FERDI employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Overview.

  3. PPIA & CNC

    Balance Financial Analysis needed? Verification and Substantiation Needed?
    ≡ ≡ ≡ ≡ - ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) Yes Yes.
    1. Use internal sources to verify assets, income and expenses. Any discrepancies between the assets, income or expenses reported on the CIS and the internal sources used for verification, must be addressed with the taxpayer and documented on the AMS case history.

    2. Paper substantiation is required:

      • If the amount claimed for income or any expenses appears to be unreasonable (per employee judgment) or the expense amounts claimed exceed the ALE standards and allowing these other expenses will result in a PPIA or CNC hardship.

    Reminder:

    Paper substantiation should also be secured in cases where the taxpayer's explanation does not correspond to the internal sources verified.

    Note:

    See IRM 5.19.1.6.4(12), Installment Agreements, for specific guidance.

    Exception:

    FERDI employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Overview.

Ways to Submit Payments

  1. There are several electronic payment options available for individuals and businesses inquiring about paying a balance, whether it is payment in full or a monthly IA. When speaking with taxpayers, encourage them to use one of the electronic payment options. There are numerous advantages to using one of the electronic payment methods, such as:

    • Ensuring payments are received timely,

    • Saving postage costs, and

    • In the case of IAs, reducing the burden of mailing monthly payments.

    Reminder:

    Taxpayers who enter into DDIAs are subject to lower user fees. Also, low-income taxpayers who meet the Bipartisan Budget Act (BBA) of 2018 criteria and who agree to make electronic payments through a debit instrument by entering into a DDIA will have their user fee waived. See IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview.

  2. Taxpayers can make payment(s) by check or money order. See IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check, for information to provide to those taxpayers who will not be utilizing an electronic payment option to submit payment(s).

  3. Taxpayers inquiring about paying an IMF balance should be encouraged to use IRS Direct Pay. Emphasize that it is a free, secure, quick, and easy way to make payments towards their IMF balance. Taxpayers may access IRS Direct Pay by typing "Direct Pay" into the IRS.gov search field and clicking the resulting links.

    • An overview of IRS Direct Pay inquiries can be found in IRM 21.2.1.48.1, IRS Direct Pay.

    • Information on IRS Direct Pay inquiries can be found in IRM 21.2.1.48.1.1, Responding to IRS Direct Pay Inquiries.

    • For inquiries regarding notification of an unsuccessful Direct Pay, see IRM 21.2.1.48.1.2, Inquiries Regarding Unsuccessful Direct Pay Payments.

  4. Taxpayers may use credit or debit cards to make payments, by phone or internet. See IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet).

    Note:

    Taxpayers who e-file can file a balance due return and make a credit or debit card payment, if the tax preparation software used supports this payment option. See IRM 21.2.1.48.4, Payment by Credit or Debit Card (Integrated e-file and e-pay).

  5. The IRS offers an official smartphone app IRS2Go that provides easy access to mobile-friendly payment options like Direct Pay, offering taxpayers a free, secure way to pay directly from your checking or savings account. Taxpayers can also use the app to make a debit or credit card payment through an approved payment processor for a fee.

  6. IRS PayNearMe is a new payment option available to taxpayers through IRS PayNearMe and participating retail stores. It is a secure walk up cash payment method that converts cash payments to electronic transactions. It utilizes a barcode and retail locations to complete the transactions. See IRM 21.2.1.60, IRS PayNearMe - Paying with Cash at a Retail Partner.

  7. EFTPS is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes. See IRM 21.5.7.4.7.14, Electronic Federal Tax Payment System (EFTPS). EFTPS has the ability to schedule payments up to twelve months in advance for individual taxpayers and up to four months in advance for business taxpayers.

    Note:

    The taxpayer must initiate payments by sending instructions to EFTPS. See IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS).

    Note:

    If the taxpayer wants to make a payment using the Electronic Federal Tax Payment System (EFTPS), advise them to follow these steps in order to have the payment correctly applied to MFT 31:

    1. Select the payment tab.

    2. Select the drop down menu on "Select Tax Form"

    3. From the drop down menu, select "1040 Separate Assessment / Innocent Spouse"

  8. Some taxpayers may opt to submit their monthly IA payments through a payroll deduction or a direct debit agreement. Depending on the type of IA and amount owed, some taxpayers may be required to submit their payments through either a payroll deduction or a direct debit.

    • A PDIA is an IA whereby a taxpayer authorizes their employer to send a specific amount to the IRS each pay period. IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement.

    • A DDIA is an IA where a taxpayer authorizes the IRS to request an electronic transfer of funds from their checking account or shared draft account to the IRS and is withdrawn on the same date every month. IRM 5.19.1.6.4.13, DDIA.

Taxpayer Responsibilities - When Submitting Payments by Check
  1. Advise the taxpayer, orally or in writing, to annotate all payments with the following:

    • Make the check payable to "United States Treasury" .

    • The taxpayer name and address.

    • The SSN or EIN (specify the primary TIN on the account).

    • Day time telephone number.

    • Tax form(s) to which the payment applies.

    • Tax period(s) to which the payment applies.

  2. Exception:

    When making a payment intended for an MFT 31 account, taxpayers should notate "PTNL" after their SSN and "MFT 31" in the memo section. "PTNL" helps to correctly apply the payment to the taxpayer's MFT 31 module.

    Exception:

    When making a payment intended for an MFT 29 account, taxpayers should notate "IRA" after their SSN and "MFT 29" in the memo section. "IRA" helps to correctly apply the payment to the taxpayer's MFT 29 module.

  3. Always encourage the taxpayer, orally or in writing, to use the following:

    • Tear-off stub on the notice.

    • Pre-addressed envelope.

      Note:

      Advise the taxpayer to mail payments at least ten days in advance of the due date, even if CP 521, Installment Agreement Reminder Notice, is not received.

  4. Provide the taxpayer, orally or in writing, the appropriate campus address to mail the payment without CP 521, Installment Agreement Reminder Notice, or CP 523, Installment Agreement Default Notice. See the SERP, Who/Where for the campus addresses for payments.

    Caution:

    Lockbox Bank address payments are accompanied by a CP 521, Installment Agreement Reminder Notice, or CP 523, Installment Agreement Default Notice. Do Not provide Lockbox Bank addresses verbally or via Correspondex letters.

Mandated IAT Tools

  1. This section provides information on mandated IAT tools.

  2. IAT provides tools that simplify research, reduce keystrokes, eliminates repetitive typing, and increases the accuracy of regular work processes.

  3. If an IAT tool is not available, or an employee has a problem with the IAT Task Manager, the case should be processed through IDRS, following established procedures. See the IAT Website, for how to report/fix problems with IAT tools.

    Note:

    Document AMS when an IAT tool is not used.

  4. IAT tool users can visit the IAT Website, to become a subscriber to the IAT newsletter. The iNews details all ongoing IAT activity with tool retirements and rollouts.

  5. AM employees should refer to Exhibit 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, for mandated IAT Tools.

  6. FA employees should refer to Exhibit 21.3.4-14, Field Assistance Mandated IAT Tools, for mandated IAT Tools.

  7. The table below provides a list of mandated tools for ACS Call Site, ACSS and CSCO employees. Descriptions of each tool as well as job aids can be found on the IAT Website in the Job Aid section.

  8. Functions Mandatory IAT Tools Suggested Use
    W&I and SB/SE ACS and ACSS
    • Credit Transfer

    • Erroneous Refund

    • Fill Forms

    • Letters

    • Manual Refund

    • REQ54

    • REQ77

    • X Claim (ACSS)

    • Payment Tracer

    • Compliance Suite

    • Disclosure Tool

    W&I and SB/SE CSCO
    • Credit Transfer

    • Erroneous Refund

    • ESTAB

    • FRM49

    • Letter

    • Manual Refund

    • REQ54

    • REQ77 (TDI)

    • TFRP Suite (SB/SE)

    • Payment Tracer/Tracer (BAL)

    • Withholding Compliance (Andover & Austin)

    • Compliance Suite

Referrals or Redirect

  1. This subsection addresses procedures on referrals and re-directs by the following categories:

    • Referrals to Manager - All Employees

    • For All Employees

    • For TAC Office Employees

    • For All ACS Employees

    • For Other Account Issues Requiring Referral or Redirect

  2. When a taxpayer requests to speak with a manager, all employees must follow the procedures in IRM 5.19.1.3.1, Referrals to Manager - All Employees.

Referrals to Manager - All Employees

  1. Taxpayer requests to speak to a manager are a priority customer service issue. If a caller requests to speak to a manager, there are two options. The taxpayer must either be allowed to speak to the manager immediately or the manager must make a timely callback to the taxpayer within 24 hours (one business day).

  2. If the manager can take the call immediately,

    1. Advise the caller you will attempt to refer him or her to your manager. Ask the caller to please hold.

    2. Contact your supervisor or appointed designee. Transfer the call to the manager or designee in accordance with your local procedures. Areas using the UCCE System may transfer the call using ″Inside Line.″

  3. If your manager or designee is not available,

    1. Inform the caller accordingly. Advise the taxpayer that they will receive a return call within 24 hours (one business day) of the taxpayer's call.

    2. Secure from the caller the best time and day (same day of the call or next day) for your manager or designee to return the call.

    3. If working ACS or ACSS, enter history code "TOC0,01,MGRCB" . AM employees should prepare Form 4442, Inquiry Referral. Refer the case to your manager in accordance with your local procedures.

    4. Managers will return the call within 24 hours.

  4. The employee should appropriately document the taxpayer's request to speak with the manager. Whether the manager speaks with the taxpayer immediately or within 24 hours, they should document the results of the conversation and reassign as appropriate for any necessary follow-up actions.

For All Employees

  1. This subsection provides procedures for all employees on referrals and redirects by the following categories:

    • General Transfer and Referral Information - IRM 5.19.1.3.2.1, General Transfer and Referral Information.

    • Collection Due Process (CDP) and CAP Form 9423 - IRM 5.19.1.3.2.2, Collection Due Process (CDP) and CAP Form 9423.

    • Taxpayer Advocate Service (TAS) - IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS).

    • Revenue Officer (RO) Assignment - IRM 5.19.1.3.2.4, Revenue Officer (RO) Assignment.

    • Referring Taxpayers to Taxpayer Assistance Center (TAC) - IRM 5.19.1.3.2.5, Referring Taxpayers to Taxpayer Assistance Center (TAC) Offices.

    • Routing of Forms - IRM 5.19.1.3.2.6, Routing of Forms.

General Transfer and Referral Information
  1. Innocent Spouse: If the taxpayer requests or appears eligible for Innocent Spouse relief, send Form 8857, Request for Innocent Spouse Relief, with Publication 971, Innocent Spouse Relief, via the Enterprise Logistics Information Technology (ELITE) System. Inform the taxpayer IRS will review their form and contact them within 30-45 days. Document the case. Input "F8857TOTPX" , where "X" = "H" for husband or "W" for wife, for each module included using CC ACTON:

    1. If the account is in Notice Status, input comments into AMS advising of the Innocent Spouse request

      Note:

      Do not input CC STAUP.

    2. Once Form 8857, Request for Innocent Spouse Relief, is received (TC 971 AC 065), generally collection activities cease against the requesting spouse from the date the Form 8857, Request for Innocent Spouse Relief, is filed; any outstanding levies against the claimant are released.

    3. When an account is in ST 22, other areas of the Service send or fax Form 4442, Inquiry Referral, to ACSS to alert ACS a claim was filed.

    4. ACSS takes the following actions for any referrals received: Assigns the case TOS4, 45,F8857, enters comments F8857 rec’d on AMS, and ensures outstanding levies against the claimant are released.

    5. If either the requesting or non-requesting spouse asks for an IA, review detailed procedures. See IRM 5.19.1.5.18, Innocent Spouse.

    6. If the account is in ST 22, proceed with appropriate collection actions on the non-petitioning spouse, such as levy, LT11, Final Notice -- Notice of intent to levy and your notice of a right to a hearing (sent certified, return receipt requested), or LT16, Please Call Us About Your Overdue Taxes Or Tax Return; then, move the case as follows:

      If ... Then ...
      Final Notice date is not present and a levy source is present Input History Code "TOE2,90,F8857SNT"
      A Final Notice date is present and a levy source is present Input History Code "TOE3,90,F8857SNT"
      No levy source is present Input History Code "TOI4,90,F8857SNT"
  2. Open Control/Freeze Codes: Accounts with certain freeze codes or open controls on IDRS may require a referral or contact with another function. See IRM 21.5.2.3(5), Adjustment Guidelines - Research, and/or IRM 21.5.6, Freeze Codes.

  3. For information about Potentially Dangerous Taxpayer (PDT) and "Caution Upon Contact" (CAU) Taxpayer designations, see IRM 25.4, Employee Protection.

  4. For reports of preparer misconduct, see IRM 21.1.3.14, Preparer Issues and Complaints/Form 14157.

  5. If a caller identifies themselves as a member of the media, refer to the Media Contacts (Referring Media Contacts) listing under the Who/Where page on SERP for a list of media contacts. For additional information see IRM 21.3.5.4.4.2

  6. For International taxpayers living abroad, see IRM 5.19.19, Campus Compliance International Case Processing (CCICP), for the non toll-free telephone numbers to be provided.

ACS Transfer Information
  1. If an account includes any modules in ST 22, and you have no access to the ACS system or have not had ACS training, determine first whether the taxpayer's question is related to the ST 22 module before transferring the correspondence to the appropriate ACSS site or the call to the appropriate ACS toll free number using the Telephone Transfer Guide

  2. Address all non-ACS (non-collection) related account issues before transferring to ACS. Only transfer a call to ACS if the taxpayer has questions or issues related to the collection of the balance due. If a taxpayer cannot or does not want to be transferred to ACS, refer to (4) below.

    If ... And ... Then ...
    The taxpayer agrees with the balance due, The purpose of the call is to request a payment arrangement or prevent collections actions, e.g., levy or NFTL, Offer to transfer the call to ACS.
    The taxpayer does not agree with the amount of the balance due, The unagreed balance due issue can be resolved on the phone, e.g., math error, payment tracer, penalty abatement request, etc., Complete the account actions following normal procedures.

    Note:

    If a balance due still remains, refer to the last row of this table.

    The taxpayer does not agree with the amount of the balance due, The unagreed balance due issue cannot be resolved on the call, e.g., Exam reconsideration, AUR issue, TDI, etc., Offer to transfer the call to ACS.
    All account actions have been completed, e.g., math error adjustment, credit transfer, transcript order, etc., A balance due still exists,
    1. Advise the taxpayer you do not have authority to initiate a payment arrangement or prevent collection actions, e.g., levy or NFTL.

    2. Offer to transfer the call to ACS.

  3. Transfer the call to either W&I ACS or SB/SE ACS depending on the BOD of the account as appropriate. Case actions such as full compliance check and cause and cure do not need to be performed before transferring, as ACS will complete these steps.

    1. BOD is W&I:

      Language ... UCCE Extension ...
      English 1080
      Spanish 1071
    2. BOD is SB/SE:

      Language ... UCCE Extension ...
      English 1085
      Spanish 1076
    3. FERDI Accounts:

      If the Account is ... UCCE Extension ...
      FERDI ACS 1082

      Note:

      All FERDI ACS calls should be transferred per the above table, whether they are English or Spanish. The FERDI site (and its back-up sites) will utilize OPI Service instead of a Spanish assistor for Spanish calls. See IRM 5.19.18.2(3), Identifying FERDI Cases, for how to identify FERDI accounts.

  4. If you are unable to transfer the call to ACS, take the following actions:

    1. Give the taxpayer the appropriate ACS telephone number:

      BOD ... Toll-Free Number ...
      W&I 800-829-7650
      SB/SE 800-829-3903
    2. Annotate AMS, no IDRS history is needed.

    3. Advise the taxpayer to call as soon as possible Monday through Friday from 8:00 AM to 8:00 PM, local time with the exception of Alaska and Hawaii, which follow Pacific Time.

    4. If the taxpayer's request for an IA meets pending criteria, input TC 971 AC 043, using CC REQ77, see IRM 5.19.1.6.4.7, Pending IA Criteria.

  5. If there are no IDRS modules in ST 22, but there are Master File ST 22 modules, do not automatically transfer the call to ACS. Generally, this will occur when the module has a TC 530 with no subsequent TC 531 or 532. In these cases, follow the balance due procedures described in IRM 5.19.17.2.1.10, Reversal of CNC Status.

Collection Due Process (CDP) and CAP Form 9423
  1. If there is an open control on the account for CDP hearing and/or a TC 520 cc 76 (NFTL filed) or 77 (levy issued), refer the correspondence or telephone call information to the ACSS CDP coordinator, found in the ACS CDP Coordinator site on SERP. Do not transfer the call to the CDP Coordinator:

    1. When speaking to the taxpayer, complete Form 4442, Inquiry Referral, with all pertinent information and fax to the ACSS/CDP site having jurisdiction of the account. Inform the taxpayer someone will call them back within five business days.

    2. When working correspondence, fax the correspondence to the ACSS/CDP site having jurisdiction of the account.

  2. If correspondence received includes Form 9423, Collection Appeal Request, or one is received via fax or e-fax, follow procedures in IRM 5.19.8, Collection Appeal Rights.

  3. If the account reflects an Appeals issue that is now closed, but the taxpayer indicates the Appeals agreed resolution was not implemented or there is an error involving implementation, see IRM 5.19.8.4.15, Retained Jurisdiction Hearings.

Taxpayer Advocate Service (TAS)
  1. Taxpayer Advocate Service (TAS): Taxpayers meeting criteria of the Taxpayer Advocate Service (TAS) receive priority handling; for criteria qualifying taxpayers for special handling, see IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, and IRM 13.1, Taxpayer Advocate Case Procedures.

  2. When appropriate, prepare Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to your local TAS Office:

    1. If the taxpayer account is in ST 22, transfer the account "TOR2, 45,ATAO"

    2. If the taxpayer account is non-ACS, input CC STAUP for nine cycles

    3. For non AMS users, refer the taxpayer to the NTA toll-free number at 877-777-4778

    4. If you can resolve and close the TAS case issue in the "same day" as the taxpayer contact, input an IDRS history code item such as "1day/CL" ; do NOT automatically refer the inquiry to TAS. For ACS (ST 22) accounts. See IRM 5.19.5.4.2, Working Contact Inventory.

    5. Refer taxpayers to the Taxpayer Advocate Service (TAS), see IRM 13, Taxpayer Advocate Service, when the contact meets TAS criteria IRM 13.1.7, TAS Case Criteria, and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer "same day" cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS.

    6. If the case is TAS-assigned, locate and route the case to the TAS employee by using the IUUD: IDRS Unit & USR Database; if you are able to close the case the same day, coordinate with the TAS employee assigned to the case before taking action on the account

    7. As part of the Identity Theft (ID Theft) Program, the AM IPSU Team will begin assisting taxpayers whose situations meet TAS criteria 5 -7 AND involve ID Theft. Applicable cases will now be considered IPSU criteria. If a case meets IPSU criteria, refer the case to AM IPSU using Form 4442, Inquiry Referral. The referral can be sent via secure e-mail to: *W&I-ITAR when available, or by fax to the ID Theft fax line (855) 807-5720 by COB the day the criteria was identified. The referral MUST contain all taxpayer’s correspondence with any attachments/documentation received with the case. A Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, or other applicable letter to the taxpayer is required.

Revenue Officer (RO) Assignment
  1. Revenue Officer (RO) assignment: If the account is in ST 26 and assigned to an RO or Group, proceed after noting the Exception information below:

    Exception:

    There are two exceptions, MMIA and ASFR, where a ST 26 account is not assigned to an RO or group; IRM 5.19.1.4.1(8), Account Actions on Referral/Redirects.

    • Manually Monitored IAs (MMIAs): the assignment code is "35XX6XXX" .

    • ASFR: the last four digits of the assignment code are "8000" .

  2. Take the following actions:

    • If the taxpayer already has the phone number of the RO, advise the taxpayer to contact the RO directly.

    • If the case is assigned to a specific RO, with the last two digits of the assignment codes as 01-99, and the taxpayer does not have the RO telephone number, provide the group phone number available on the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    • If the case is assigned to an RO group, but not yet assigned to a specific RO, inform the taxpayer verbally, or via Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, another office has jurisdiction of their account and they will contact the taxpayer when the account is assigned.

      Caution:

      Advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Do not transfer the call or provide a direct telephone number of a revenue officer.

    • Inform the taxpayer it is in their best interest to make payments on the balance due to reduce the penalty and interest continuing to accrue until the balance is paid in full.

  3. If any correspondence is received for an account that is assigned to an RO, it must be forwarded to the RO. Follow instructions in paragraph (2) above.

Referring Taxpayers to Taxpayer Assistance Center (TAC) Offices
  1. Referring Taxpayers to Taxpayer Assistance Center (TAC) Offices:Do not refer taxpayers to a TAC. If the taxpayer insists on face-to-face contact, see IRM 21.3.5.4.4.1, Directing Taxpayers to Taxpayer Assistance Centers (TAC).

  2. If the taxpayer is already resolving their account at a TAC office, allow the taxpayer up to ten days:

    • If the account is in Notice Status, input CC STAUP 2202

    • If the account is in ST 22, ensure the case is in the appropriate ACS inventory with a 15 day follow-up

  3. Secure phone numbers and levy sources. See IRM 5.19.1.4.2, Taxpayer Information, and IRM 5.19.1.4.4.2, Obtain and Verify Levy Sources.

Routing of Forms
  1. Forms may be faxed or received with correspondence that are processed by a another business unit or centralized area.

  2. Refer to IRM 21.1.7–17, Forms - Routing Guide, for information on where to route forms.

  3. All employees are required to document AMS histories with the information received and take the next appropriate case action prior to forwarding the Forms.

For AM Employees

  1. AM employees may only grant Guaranteed IAs, SIAs $25,000 and Under, and IBTF Express IAs. If the taxpayer requests a resolution that is outside AM authority, including:

    • SIA Over $25,000,

    • NSIA,

    • PPIA, or

    • CNC Hardship

    transfer the call to ACS. See IRM 5.19.1.3.2.1.1, ACS Transfer Information, for instructions on transferring calls to ACS.

  2. If an AM employee receives a call for an account including any BMF compliance issues, and they have not had BMF training, determine first whether the taxpayer's question is related to the BMF module(s) before transferring the call to ACS:

    For ... UCCE Extension ...
    BMF 1025

For TAC Office Employees

  1. ST 22 Cases: When working ST 22 cases, notify your ACS Liaison of actions you take if you do not have access to ACS; do not direct the taxpayer to contact the ACS call site.

For All ACS Employees

  1. NMF: For calls on an NMF account, advise the taxpayer they must call 888-829-7434.

  2. Spanish-speaking Taxpayers: When the taxpayer requests a Spanish-speaking employee, transfer the call as follows:

    BOD ... UCCE Extension ...
    W&I, 1071
    SB/SE, 1076
  3. For Multilingual calls, refer to IRM 5.19.1.3.5.1, Multilingual Services.

  4. For Tax Law Inquiries, refer to IRM 5.19.1.3.5.2, Tax Law Inquiry, to determine the correct transfer number for when transferring the taxpayer's call.

  5. For Non Tax Law Inquiries, refer to IRM 5.19.1.3.5.3, Non Tax Law Inquiry.

Multilingual Services
  1. Multilingual services will be offered to taxpayers with a language barrier. The primary vehicle for providing this service is through bilingual employees and an Over-the-Phone Interpreter (OPI).

  2. The IRS/OPI contract allows the disclosure of tax information to the OPI interpreter. The assistor should limit disclosure to only that information necessary to resolve the issue. The interpreters are not employees of IRS so communicate to them exactly as you would advise the taxpayer.

  3. If translation is needed for non-English speaking taxpayers, offer the taxpayer OPI Service.

    1. For Spanish speaking callers:

      BOD ... UCCE Extension ...
      W&I 1071
      SB/SE 1076
    2. For all other non-English speaking callers, offer OPI service.

  4. To use the OPI services, complete the following:

    • Conferencing a call from the Soft Phone - Press Consult/Conf to initiate a consult or conference call.

    • A Consult/Conference Dialing Pad dialog box displays.

    • Enter the numbers 9 and 1, then enter the new toll-free number 888-563-1155.

    • Enter your PIN number (xxxx-xxxxx) - this is a unique personal PIN for each employee. PINs have been distributed to site management. If an employee does not have a PIN, management or local SA will contact coordinator to have one assigned, usually within 1 business day.

    • Select language:

      Press ... For Language ...
      1 Spanish
      2 Creole
      3 Mandarin
      4 Korean
      5 Vietnamese
      6 Somali
      7 Russian
      8 French
      9 Arabic
      0 Operator assistance (To address any other language needs or concerns)
Tax Law Inquiry
  1. Filing Season Assistance: From January 2 through the last day of the filing season, AM is responsible for answering In-Scope (IS) tax law inquiries. See IRM 21.1.1.3, Customer Service Representative (CSR) Duties.

  2. Post-Filing Season Assistance: After filing season and continuing for the remainder of the year (December 31), taxpayers should be referred to self-help options. See IRM 21.1.1.3, Customer Service Representative (CSR) Duties, and IRS.gov for tax law information.

  3. Accounts Management will continue to answer tax law inquiries on a limited number of topics year-round. These include:

    • Tax Exempt Government Entities (TEGE),

    • Special Services: Military or Civilian Combat; Federally Declared Disaster,

    • Affordable Care Act (ACA), and

    • International Tax Law (overseas calls only).

  4. When the taxpayer's Tax Law inquiry is:

    1. Received during filing season, or

    2. Received after filing season on one of the topics listed in (3) above,

    see IRM 5.19.1.3.5.2.1, Tax Law Inquiry Topic is Handled by AM.

  5. When the taxpayer's Tax Law inquiry is received after filing season and is not one of the topics listed in (3) and:

    1. The taxpayer has internet access, see IRM 5.19.1.3.5.2.2, Tax Law Inquiry Topic is NOT Handled by AM and TP has Internet Access.

    2. The taxpayer does not have internet access, see IRM 5.19.1.3.5.2.3, Tax Law Inquiry Topic is NOT Handled by AM and Taxpayer does NOT have Internet Access.

    Note:

    Inform the taxpayer they are being transferred

    Note:

    All Compliance issues should be addressed before transferring. The assistor should inform the taxpayer they are being transferred and advise caller of what topic to request after the transfer. The assistor should document AMS history with the reason for the transfer.

    Note:

    Document AMS history with the reason for the transfer.

  6. See IRM 21.1.1.3, Customer Service Representative (CSR) Duties, for additional information.

Tax Law Inquiry Topic is Handled by AM
  1. When the taxpayer's Tax Law inquiry either received during filing season, or received after filing season and is one of the topics listed in IRM 5.19.1.3.5.2(3), Tax Law Inquiry, AM is responsible for handling the inquiry.

    1. If the call is received during Accounts Management Toll-Free lines (AM) hours of operation (7:00 am to 7:00 pm (local time)):

      Issue ... UCCE Extension ...
      AM Tax Law Inquiry, 1001

      Note:

      The caller will be transferred to a screening line. Advise the taxpayer that they will be transferred again. This will help direct the caller's inquiry expeditiously and to minimize the number of times they are subsequently transferred.

    2. If the call is received outside of the hours of operation, do not transfer the call. Instead, advise taxpayer of the hours of operation and to call the appropriate AM toll-free number 800-829-1040.

Tax Law Inquiry Topic is NOT Handled by AM and TP has Internet Access
  1. When the taxpayer’s Tax Law inquiry is received after filing season and is not one of the topics listed in IRM 5.19.1.3.5.2(3), Tax Law Inquiry, the inquiry is not handled by AM and the taxpayer should be referred to self-help methods. The taxpayer has internet access, advise the taxpayer that the Service does not provide live assistance on this topic. Refer the taxpayer to IRS.gov.

  2. Provide the taxpayer with the following navigation tips:

    • Select the Help & Resources’ tab on the IRS.gov home page. Options are listed on the left side of the page,

    • Interactive Tax Assistant (ITA) - The ITA tool is a tax law resource that asks the taxpayer a series of questions and then provides them with responses to tax law questions on a limited number of topics. Enter "ITA" into the Search feature, or

    • IRS Tax Map- Enter "IRS Tax Map" into the Search feature for more detailed information.

    and close the call.

  3. If the caller does not want to be referred to the website, transfer the call using the following tables:

    1. ACS Call Sites: Austin, Brookhaven, Buffalo, Denver, Nashville, Oakland, Puerto Rico, Seattle:

      Language ... UCCE Extension ...
      English 3013
      Spanish 3014
    2. All other ACS Call Sites:

      UCCE Extension ...
      1001

      Note:

      The caller will be transferred to a screening line. Advise them they will be transferred again.

Tax Law Inquiry Topic is NOT Handled by AM and Taxpayer does NOT have Internet Access
  1. When the taxpayer’s Tax Law inquiry is received after filing season and is not one of the topics listed in IRM 5.19.1.3.5.2(3), Tax Law Inquiry, the inquiry is not handled by AM and the taxpayer should be referred to self-help methods. When the taxpayer's inquiry is not handled by AM and the taxpayer does not have internet access, advise the taxpayer that the Service does not provide live assistance on this topic. Refer the taxpayer to the following sources:

    • Tele-Tax: 800-829-4477 for information on a variety of tax topics. After the selection of the language preference, press 2 to enter the Tele-Tax topics, then press 123 and follow the prompts to find the right Tele-Tax topic.

    • Commercial software packages - many also provide answers to tax questions.

    • A tax professional.

    and close the call.

  2. If the caller does not want to be referred to Tele-Tax, transfer the call using the following tables:

    1. ACS Call Sites: Austin, Brookhaven, Buffalo, Denver, Nashville, Oakland, Puerto Rico, Seattle:

      Language ... UCCE Extension ...
      English 3013
      Spanish 3014
    2. All other ACS Call Sites:

      UCCE Extension ...
      1001

      Note:

      The caller will be transferred to a screening line. Advise them they will be transferred again.

Non Tax Law Inquiry
  1. ACS employees should transfer non tax law related inquiries.

  2. For Account Issues, refer to IRM 5.19.1.3.5.3.1, Account Issues.

  3. For Refund Inquiries, refer to IRM 5.19.1.3.5.3.2, Refund Inquiries.

  4. For Exam Issues, refer to IRM 5.19.1.3.5.3.3, Exam Issues.

  5. For AUR Issues, refer to IRM 5.19.1.3.5.3.4, AUR Issues.

  6. For ACS FERDI Issues, refer to IRM 5.19.1.3.5.3.5, ACS FERDI Issues.

  7. For BMF Taxpayers, refer to IRM 5.19.1.3.5.3.6, BMF Taxpayer.

  8. For Special Compliance Personnel (SCP) Calls, refer to IRM 5.19.1.3.5.3.7, Special Compliance Personnel (SCP) Calls.

Account Issues
  1. AM Toll Free lines handles account issues that do not pertain to the ACS case. When the call is received during AM hours of operation, 7:00 am to 7:00 pm (local time). transfer the call.

    Language ... UCCE Extension ...
    English, 1020
    Spanish, 1021

    Exception:

    See IRM 5.19.1.3.5.3.2, Refund Inquiries, for transferring calls regarding refund inquires.

  2. If the call is received outside of the hours of operation, do not transfer the call. Instead, advise taxpayer of the hours of operation and to call the appropriate AM toll-free number (800-829-1040).

Refund Inquiries
  1. When a taxpayer inquires about their refund where it has been:

    • 21 days or less since they filed an electronic return, or

    • Six weeks or less since they filed a paper return,

    and the call is received during AM hours of operation (7:00 am to 7:00 pm (local time)), transfer the call:

    Language ... UCCE Extension ...
    English, 3158
    Spanish, 3258
  2. When a taxpayer inquires about their refund where it has been:

    • More than 21 days since they filed an electronic return, or

    • More than six weeks since they filed a paper return,

    and the call is received during AM hours of operation, transfer the call:

    Language ... UCCE Extension ...
    English, 1020
    Spanish, 1021
  3. If the call is received outside of the hours of operation, do not transfer the call. Instead, advise taxpayer of the hours of operation and to call the appropriate Refund Hotline (Automated Service): 800-829-1954.

  4. Emphasize to the taxpayer that the best way to get the most current information about their refund is through the automated systems (Where’s My Refund (WMR) on IRS.gov; IRS2GO (English and Spanish) for smart phones; or the Refund Hot Line (800-829-1954)).

    • The automated systems are fast, accurate and available 24 hours a day, 7 days a week from any computer or smart phone with internet access.

    • The automated systems provide information that is specific to each taxpayer who uses the tool.

    • The automated systems eliminate the need for the taxpayer to wait on hold to speak to an assistor.

Exam Issues
  1. Call transfer functionality to Exam is available as an alternative for routing Form 4442, Inquiry Referral, or e4442.

  2. Examination Hours of Operation are:

    • W&I - 8:00 am to 8:00 pm (local time).

    • SB/SE - 7:00 am to 7:00 pm (local time).

  3. Those accounts meeting the transfer criteria outlined below can be transferred:

    • Open audit identified by an Exam Freeze Code (-L), information available on CC AMDIS, AIMS status code is between 00 and 57 AND a unreversed TC 420 or TC 424

    • Closed audit with an open Exam control base on IDRS, indicating there is an open Audit Reconsideration case, or

    • Closed audit with no Exam control base on IDRS, but meeting the criteria in IRM 4.13.2.1, Research/Initial Case Screening.

  4. Follow procedures in Exhibit 21.5.10-2, AIMS STATUS CODE GUIDE CORRESPONDENCE EXAM.

AUR Issues
  1. Follow the procedures in IRM 21.3.1.5.53, Status of Individual Master File (IMF) Underreporter Cases, for accounts with an open AUR case.

ACS FERDI Issues
  1. Employees can identify FERDI accounts by the following codes:

    • AMS – "Federal Employee" in the Alerts box of the Account Summary screen,

    • ACSWEB or ACS Green Screen – "FE" in the Alerts section,

    • IDRS CC ENMOD screen – "FED-EMP>F" ,

    • CFOL CC IMFOLE screen – "FED EMPLOY/RETIREE" ,

  2. FERDI Calls on Notice Status Cases (Not ST 22, 24 or 26): No special handling is required. ACS employees should follow guidelines in IRM 5.19.18.4(7), FERDI General Case Processing Overview, to process FERDI calls (not in TDA Status 22, 24 or 26).

  3. FERDI Calls on TDA Status Cases - ST 22 or 24::

    • Jacksonville, Seattle or Atlanta Call Sites - ACS employees at these sites should work these calls. Jacksonville is the FERDI site; Seattle and Atlanta are the FERDI backup sites. ACS employees at these sites are trained to work FERDI ACS cases.

    • All other ACS Call Sites - ACS employees at all other sites should transfer calls in ST 22 or 24 to the FERDI site:

      Call Site: UCCE Extension ...
      Jacksonville (FERDI) 1082

      Note:

      All FERDI calls needing Spanish translators should be transferred to the Jacksonville Call Site (and its back-up sites) as shown in the table above. They will utilize OPI Service instead of a Spanish assistor.

  4. FERDI Calls on TDA Status Cases - ST 26: Follow procedures in IRM 5.19.1.3.2.4, Revenue Officer (RO) Assignment, and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

  5. IRS Employee Calls: If the call is from an IRS employee, follow procedures in IRM 5.19.18.3, IRS Employee FERDI Cases

BMF Taxpayer
  1. If you are not trained to handle an ACS BMF account, transfer the call:

    ACS ...   UCCE Extension ...
    SB/SE   1085

    Exception:

    Although Puerto Rico ACS is a W&I site, they provide bilingual support for SB/SE ACS lines. Therefore, Puerto Rico ACS employees should not transfer calls to this line.

Special Compliance Personnel (SCP) Calls
  1. The Fixing America's Surface Transportation (FAST) Act, signed into law December 4, 2015, requires the IRS to establish a Special Compliance Personnel (SCP) program funded by the retained earnings from the PDC program. See the Private Debt Collection website, and IRM 5.19.5.4.10.15, Special Compliance Personnel (SCP), for additional information.

  2. SCP employees in ACS are assigned to ACS Status (ST22/03) accounts only. These accounts can be identified with a TC 971 AC 470. Only SCP employees can work these accounts.

  3. Non-SCP employees who receive calls on SCP accounts must transfer the call to the SCP line:

    SCP Line ... UCCE Extension ...
    English 1138
    Spanish 1139
  4. SCP program case inventory has its own toll-free telephone number for incoming calls. The phone number will be on all outgoing ACS letters from the SCP inventory: 833-282-7220.

For Other Account Issues Requiring Referrals or Redirect

  1. ACS (ST 22) Accounts: When an IA is requested, input TC 971 AC 043 if the case meets pending IA criteria, IRM 5.19.1.6.4.7, Pending IA Criteria. Route the correspondence to the appropriate ACSS Site, based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping). Issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, if the ACSS Site is outside of your campus. If the ACSS Site is in your campus, send Letter 2645C, Interim Letter, if the case is over 25 days old and no interim letter was sent. Update comments on AMS.

    Note:

    If a Notice Status account in CSCO updates to ST 22 because a CC STAUP was not input or updated timely, CSCO will continue to work the case. After working the case, update AMS comments with the case resolution. Contact the ACS Liaison to ensure the case is updated on ACS and no enforcement action is outstanding.

  2. Form 4442, Inquiry Referrals: If you receive a taxpayer inquiry that cannot be resolved during initial contact (or are directed to initiate a referral), follow instructions in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, to prepare Form 4442, Inquiry Referral.

  3. CP 04 (Combat Zone) responses: Route to Kansas City CSCO and issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office. Provide the CP 04 toll-free number in the letter. See IRM 5.19.10.6.5.5, Responses to CP 04.

  4. Criminal Investigation (CI) Z Freezes: Determine the controlling CI Fraud Detection Center (FDC) identified by the first two digits of the DLN of the TC 916 on CC TXMODA or the TC 918 on CC ENMOD. Prepare Form 4442, Inquiry Referral. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Discovered Remittance: See IRM 3.8.46.1, Discovered Remittances.

  6. Freedom of Information Act (FOIA) Request: Forward the correspondence to the Disclosure Manager in the territory where the taxpayer resides; input CC STAUP 2209. If there are other issues in the correspondence, photocopy the correspondence before routing to the Disclosure Manager and continue case processing.

  7. Frivolous correspondence: See IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments.

  8. Frivolous Return: Input TC 592 cc 082. See IRM 5.19.2.6.4.2, IMF Special Handling.

  9. IA Requests Above Campus Authority: Any request above your authority must be routed to an RO for consideration. IRM 5.19.1.6.4, Installment Agreements (IAs), and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

    Reminder:

    FERDI taxpayers have higher ACS authority limits. See IRM 5.19.18.4(1), FERDI General Case Processing Review.

  10. IRS employee sends correspondence about their tax account: Do not work the case. Refer the inquiry to the field per IRM 5.19.18.3, IRS Employee FERDI Cases.

  11. KITA or KIA case: See IRM 5.19.1.5, Balance Due Special Considerations.

  12. Payment tracer request: If there is no balance due issue, forward the correspondence to AM. If the taxpayer addresses a balance due account and it meets collection criteria, attempt to locate the payment; for additional information, see IRM 21.5.7, Payment Tracers.

  13. Pending OIC: The account is in ST 71 for a pending OIC (-Y Freeze). Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office.

    1. Route to COIC if there is an unreversed TC 480 (-Y Freeze).

    2. Route to MOIC if there is an unreversed TC 480 and TC 780 (-Y Freeze).

  14. Revenue Officer Request: Forward to Centralized Case Processing (CCP) in PSC. If the taxpayer disputes the liability and there are no collection balance due issues, see IRM 21.3.3.4.9.2, Campus Collection Function Correspondence/Inquiry/Notice.

  15. Identify the issue the taxpayer is disputing; send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, or interim letter as appropriate. Route the correspondence as follows:

    If ... With Identifier ... Then Route To ...
    ASFR TC 290 TC 599 cc 088 or cc 089 See SERP, Who/Where, ASFR - Reconsideration Returns - Centralized Processing Sites
    AUR TC 922 and TC 290 See IRM 21.3.1.4.58, Copies of CP 2000, CP 2501, 2893C Letter
    Bankruptcy filed TC 520 with cc 81, 84 (-W freeze), 83-89, 60-67 (-V Freeze) IRM 5.19.1.5.2.1, Contacts Regarding Insolvency Issues
    CAWR TC 290 BS 55, or TC 240 RN 500-514 and RN 549/550 Fax correspondence to the appropriate CAWR site based on the State Mapping Guide:
    • PSC (28)

    • MSC (49)

    Examination TC 300 TC 31X through TC 35X Route to the appropriate Examination site based on the DLN. See IRM 4.13.7-4, Central Reconsideration Unit (CRU) Addresses
    Failure to Comply with Certain Information Reporting Requirements, or Intentional Disregard to Comply TC 240 RN 651 or 652 Detroit Computing Center
    1300 John C Lodge Dr.
    Detroit, MI 48226-2414
    Failure to File Information Returns TC 240 RN 638 IRS
    201 W Rivercenter Blvd
    Stop 814G, Team 203
    Covington, KY 41011-1424
    Fees TC 360 IRS
    201 W Rivercenter Blvd
    Stop 8420G
    Covington, KY 41011-1424
    FUTA TC 290 BS50 or 51 Fax correspondence to the FUTA site based on the State Mapping Guide:
    CSC (17)
    859-669-7177
    Informant Intentionally left blank See IRM 21.1.3.19, Informant Contacts
    Innocent Spouse Form 8857, Request for Innocent Spouse Relief See IRM 25.15.1.6.1, Routing of Form 8857
    Unassessable Erroneous Refund - U Freeze See IRM 5.19.1.3.2, For All Employees
    OIC Pending Unreversed TC 480 or TC 780 See IRM 21.5.6.4.50, -Y Freeze
    Withholding Compliance Program TC 240 RN 615 and 616
    1. Close the case control, if applicable

    2. Fax the correspondence to the Withholding Compliance Program

    For any other issue and the taxpayer does not discuss payment Intentionally left blank
    1. Issue Letter 2645C, Interim Letter, if the case is older than 25 days

    2. Route the case to AM

    3. Close case controls

Balance Due Research and Balance Due Collection First Read Process (CFRP)

  1. This subsection outlines how to resolve the taxpayer’s unpaid liability.

  2. Research all tax account(s) to identify compliance issues and address the taxpayer’s inquiry.

  3. Conduct a thorough interview with the taxpayer if contact is via telephone or face-to-face.

  4. Make every attempt to resolve the account upon initial contact.

  5. Ensure the appropriate functional area is processing the case. See IRM 5.19.1.3, Referrals or Redirect.

Account Actions on Referral/Redirects

  1. When researching the account, if any modules are in ACS ST 22, do not work the case unless you have access to the ACS system. See IRM 5.19.1.3.2.1.1, ACS Transfer Information. If no access to ACS address all non-ACS issues and take the following actions:

    If ... Then ...
    Speaking to the taxpayer Transfer the call to ACS using the Telephone Transfer Guide available on SERP.
    Working correspondence Refer the correspondence to the appropriate ACSS site based on BOD Code and State mapping (W&I State Mapping or SB/SE State Mapping).

    Note:

    You are not required to contact the taxpayer and advise them of this referral if the ACSS Site is within your campus.

    Outside your campus Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office
    Received date of the correspondence is 25 days or greater Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to the taxpayer prior to routing the case to ACSS; for routing directions for specialized processing, see IRM 21.3.3.4.10, Taxpayer Late Replies

    Example:

    Tentative Carryback

  2. Continue processing by ensuring you input history on AMS. If you do not have access to AMS, input history on CC ENMOD to reflect the paper referral of a telephone call or the correspondence to ACS; this alerts ACS employees who may be researching the account not to take some type of enforcement action there is a taxpayer contact being referred to them for consideration. If transferring the call to ACS, no history is required.

    If ... Then ...
    The account is in ST 22 on MF only (CC IMFOL) due to a CNC (TC 530) Work the case using normal procedures.

    Note:

    Do not refer these to ACS; they are no longer on the ACS system.

    Processing an address change on an account in ST 6X
    1. IRM 5.19.1.4.2.1, Entity and Address Changes.

    2. After the account posts to the new location and is in ST 22, re-input the IA immediately

    You are in a TAC Office Work the ST 22 cases and notify your ACS Liaison of the actions you take if you do not have access to ACS

    Note:

    Do not direct the taxpayer to contact the ACS call site.

  3. Any function receiving a ST 24 case is required to process the case following normal procedures, up to the functions’ authority level. See IRM 5.19.1.2.6, Case Processing Authority Levels. Do not bring the account into ACS if you can close the case on the same day - the case can be worked if in ST 24. If the taxpayer must provide additional information or you are unable to close the case on the same day, take the following actions:

    Exception:

    Do not bring the account to ACS if the account:

    • Meets ACS bypass criteria. See IRM 5.19.5-8, Cases that Systemically Bypass ACS (Reference IRM 5.19.5.3.1).

    • Balance exceeds ACS authority levels. See IRM 5.19.1.2.6, Case Processing Authority Levels.

    1. Input CC STAUP 2200 and CC ASGNI/CC ASGNB 0605.

    2. Then immediately input: CC ASGNI/CC ASGNB 0000 if the account is not a pending IA. CC ASGNI/CC ASGNB 0120 if the account is a pending IA.

    3. Document AMS narrative indicating why the case was brought back to ACS and provide the taxpayer with a follow-up date.

  4. ACS & ACSS Employees: Follow the procedures below when handling an account exceeding ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF):

    Note:

    Ensure FCC is completed per IRM 5.19.1.4.4.1, Full Compliance Check.

    Caution:

    Any ACS or ACSS employee can work cases using the increased authority. The former large dollar units are no longer in existence. Do not transfer anything to any of the former large dollar units.

    Exception:

    FERDI employees should refer to FERDI authority levels in IRM 5.19.18.4(1), FERDI General Case Processing Review.

    Note:

    Jeopardy - Cases where collection is in jeopardy (at risk) should be assigned to Field Collection. Enter TOI7. See IRM 5.19.5.8.4, I7 - Transfers Actions.

    1. The account is in Notice Status or ST 24:

      If ... And ... Then ...
      ACS & ACSS ST 24 and/or Notice Status and request for an IA

      Note:

      This includes ST 64 accounts.

      1. Input TC 971 AC 043 if the request meets pending IA criteria. IRM 5.19.1.6.4.7, Pending IA Criteria.

      2. You must document the terms of the proposed IA on AMS. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

      3. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

      4. Notice Status Accounts Only: Input CC STAUP 2200 to IDRS for all Notice Status modules.

      5. Transfer the case to the field.

        • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      6. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS ST 24 and/or Notice Status and taxpayer states Unable to Pay (Possible CNC).
      1. Document AMS.

      2. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      3. Notice Status Accounts Only: Input CC STAUP 2200 to IDRS for all Notice Status modules.

      4. Transfer the case to the field.

        • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      5. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS Request for a Release of Levy Only: Account is in ST 24 and an immediate hardship exists (shut-off notice, eviction notice etc). See IRM 5.19.4.4.10, Levy Release: General Information.
      1. If a hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, release levy upon receipt of verification.

        Note:

        If levy was issued through the Federal Levy Payment Program (FPLP), State Income Tax Levy Program (SITLP) or Alaska Permanent AKPFD, follow instructions in IRM 5.19.9, Automated Levy Programs.

      2. Document AMS.

      3. If contact is over the phone, inform the taxpayer verbally of the referral to the field and of the levy release. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and the levy release.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      4. Transfer the case to the field.

        • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      5. If documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS Request for a Release of Levy Only: Account is in ST 24 and either:
      • No levy was issued, or

      • A levy was issued, but is not causing an immediate hardship.

      1. If any levies were issued, but no hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, do not release them. If no levy was issued, proceed to paragraph (c) below.

        Note:

        If a levy was issued through FPLP, SITLP or AKPFD, follow instructions in IRM 5.19.9, Automated Levy Programs.

      2. Notify the taxpayer the levy release is denied and inform them of their right to speak to a manager to appeal the denial. If the manager sustains the decision to not release the levy, taxpayers have the right to appeal the decision. See IRM 5.19.8, Collection Appeal Rights. Also, see IRM 5.19.1.3.2(10), For All Employees.

      3. Document AMS.

      4. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and that the levy was not released.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      5. Transfer the case to the field.

        • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      6. If documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS ST 60 and the taxpayer requests to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).
      1. Default IA. Input CC IADFL on IDRS. Follow instructions in IRM 5.19.1.6.4.19.1, Withdrawal of IA Requests.

        Note:

        The defaulting of an existing IA is based on the taxpayer request to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).

      2. Document AMS to show that the IA was defaulted and why.

      3. Input TC 971 AC 043 only if the taxpayer wants to revise their IA and the request meets pending IA criteria. You must document the terms of the proposed IA on AMS. See IRM 5.19.1.6.4.7, Pending IA Criteria. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

      4. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field. Advise the taxpayer it could take up to 90 days before the RO contacts them.

      5. Input CC STAUP 2200 to IDRS for all Notice Status modules.

      6. Transfer the case to the field.

        • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      7. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      Note:

      Include Form 14425, Withdrawal of Installment Agreement Requests, (or equivalent), with any documentation forwarded to the field group.

    2. The account has modules in ST 22:

      If ... And ... Then ...
      ACS & ACSS The taxpayer requests an IA
      1. Input TC 971 AC 043 if the request meets pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria.

      2. You must document the terms of the proposed IA on AMS. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

      3. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field. Advise the taxpayer it could take up to 90 days before the RO contacts them.

      4. If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      5. Transfer the case to the field.

        • Input TOI7,TFRO. See IRM 5.19.5.8.4 , I7 - Transfers Actions.

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      6. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS Taxpayer states Unable to Pay (Possible CNC).
      1. Document AMS.

      2. If contact is over the phone, inform the taxpayer verbally of the referral to the field. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field. Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      3. If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      4. Transfer the case to the field.

        • Input TOI7,TFRO. See IRM 5.19.5.8.4, I7 - Transfers Actions.

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      5. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS Request for a Release of Levy Only: An immediate hardship exists (shut-off notice, eviction notice etc). See IRM 5.19.4.4.10, Levy Release: General Information.
      1. If a hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, release levy upon receipt of verification.

      2. Document AMS.

      3. If contact is over the phone, inform the taxpayer verbally of the referral to the field and of the levy release. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and the levy release.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      4. If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      5. Transfer the case to the field.

        • Input TOI7,TFRO. See IRM 5.19.5.8.4, I7 - Transfers Actions.

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      6. If documentation is received, forward it to the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      ACS & ACSS Request for a Release of Levy Only:
      Either:
      • No levy was issued or

      • A levy was issued, but is not causing an immediate hardship.

      1. If any levies were issued, but no hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, do not release them. If no levy was issued, proceed to paragraph (c) below.

      2. Notify the taxpayer the levy release is denied and inform them of their right to speak to a manager to appeal the denial. If the manager sustains the decision to not release the levy, taxpayers have the right to appeal the decision. See IRM 5.19.8, Collection Appeal Rights. Also, see IRM 5.19.1.3.2(10), For All Employees.

      3. Document AMS.

      4. If contact is over the phone, inform the taxpayer verbally of the referral to the field.
        If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and that the levy was not released.
        Advise the taxpayer it could take up to 90 days before the RO contacts them.

        Note:

        Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

      5. If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      6. Transfer the case to the field.

        • Input TOI7,TFRO. See IRM 5.19.5.8.4, I7 - Transfers Actions.

        • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

      7. If documentation is received, forward it to ACSS or the field group. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

  5. CSCO Employees: Follow the procedures below when handling an account exceeding ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF):

    Note:

    Ensure FCC is completed per IRM 5.19.1.4.4.1, Full Compliance Check.

    Caution:

    The former large dollar units are no longer in existence. Do not transfer a call to any of the former large dollar units.

    Note:

    Jeopardy - Cases where collection is in jeopardy (at risk) should be assigned to Field Collection. Follow instructions in paragraph (8) below.

    If ... And ... Then ...
    CSCO Notice Status and request for an IA

    Note:

    This includes ST 64 accounts.

    1. Input TC 971 AC 043 if the request meets pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. You must document the terms of the proposed IA on AMS. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

    3. If contact is over the phone, inform the taxpayer verbally of the referral to the field.
      If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

    4. Transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    5. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    CSCO Taxpayer states Unable to Pay (Possible CNC).
    1. Document AMS.

    2. If contact is over the phone, inform the taxpayer verbally of the referral to the field.
      If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    3. Transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    4. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    CSCO Request for a Release of Levy Only:
    Account is in ST 22 or 24 and an immediate hardship exists (shut-off notice, eviction notice etc). See IRM 5.19.4.4.10, Levy Release: General Information.
    1. If a hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, release the levy upon receipt of verification.

      Exception:

      Immediately forward ST 22 accounts to ACSS. Fax the request to the applicable ACSS Liaison based on state mapping using the SERP, Who/Where tab to the ACS Support Liaison.

    2. If contact is over the phone, inform the taxpayer verbally of the referral to the field and the levy release.
      If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and the levy release.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    3. Document AMS.

    4. Transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    5. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    CSCO Request for a Release of Levy Only:
    Account is in ST 22 or 24 and either:
    • No levy was issued, or

    • A levy was issued, but is not causing an immediate hardship.

    1. If any levies were issued, but no hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, do not release them. If no levy was issued, proceed to paragraph (c) below.

      Exception:

      Immediately forward ST 22 accounts to ACSS. Fax the request to the applicable ACSS Liaison based on state mapping using the SERP, Who/Where tab to the ACS Support Liaison.

    2. Notify the taxpayer the levy release is denied and inform them of their right to speak to a manager to appeal the denial. If the manager sustains the decision to not release the levy, taxpayers have the right to appeal the decision. See IRM 5.19.8, Collection Appeal Rights. Also, see IRM 5.19.1.3.2(10), For All Employees.

    3. If contact is over the phone, inform the taxpayer verbally of the referral to the field.
      If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field and that the levy was not released.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    4. Document AMS.

    5. Transfer the case to the field.

      • If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    6. If documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    CSCO ST 60 and the taxpayer requests to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).
    1. Default IA. Input CC IADFL on IDRS. Follow instructions in IRM 5.19.1.6.4.19.1, Withdrawal of IA Requests.

      Note:

      The defaulting of an existing IA is based on the taxpayer request to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).

    2. Document AMS to show that the IA was defaulted and why. If a new IA was proposed, you must input TC 971 AC 043 if the request meets pending IA criteria and document the terms of the proposed IA on AMS. See IRM 5.19.1.6.4.7, Pending IA Criteria. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

    3. If contact is over the phone, inform the taxpayer verbally of the referral to the field.
      If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral to the field.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

    4. Transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    5. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      Note:

      Include Form 14425, Withdrawal of Request for Installment Agreement (or equivalent), with any documentation forwarded to ACSS or the field group.

  6. FA Employees: Follow the procedures below when handling an account exceeding ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF & BMF):

    Note:

    Ensure FCC is completed per IRM 5.19.1.4.4.1, Full Compliance Check.

    Caution:

    The former large dollar units are no longer in existence. Do not transfer a call to any of the former large dollar units.

    Note:

    Jeopardy - Cases where collection is in jeopardy (at risk) should be assigned to Field Collection. Follow instructions in paragraph (8) below.

    If ... And ... Then ...
    FA Notice Status and request for an IA

    Note:

    This includes ST 64 accounts.

    1. Input TC 971 AC 043 if the request meets pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. You must document the terms of the proposed IA on AMS. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

      • If the case will be referred to the field, encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

      • If the case will be referred to ACS, encourage the taxpayer to call ACS as soon as possible to make arrangements.

    3. Inform the taxpayer verbally of the referral.
      If the case is being transferred to the field, advise the taxpayer it could take up to 90 days before the RO contacts them.

    4. If the account balance is between ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to ACS.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Input CC ASGNI 0120.

      • Provide the taxpayer or representative with the ACS toll-free number.

    5. If the account balance is more than ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    6. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • ACS: Forward correspondence received to ACSS based on state mapping using the SERP, Who/Where tab to the Campus Program Locator Guide.

      • Field: Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    FA Taxpayer states Unable to Pay (Possible CNC).
    1. Document AMS.

    2. Inform the taxpayer verbally of the referral.
      If the case is being transferred to the field, advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    3. If the account balance is between ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to ACS.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Input CC ASGNI 0120.

      • Provide the taxpayer or representative with the ACS toll-free number.

    4. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    5. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • ACS: Forward correspondence received to ACSS based on state mapping using the SERP, Who/Where tab to the Campus Program Locator Guide.

      • Field: Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    FA Request for a Release of Levy Only:
    Account is in ST 22 or 24 and an immediate hardship exists (shut-off notice, eviction notice etc). See IRM 5.19.4.4.10, Levy Release: General Information.
    1. If a hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, release the levy upon receipt of verification.

    2. Inform the taxpayer verbally of the referral and the levy release.
      If the case is being transferred to the field, advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    3. Document AMS.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to ACS.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Provide the taxpayer or representative with the ACS toll-free number.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    6. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • ACS: Forward correspondence received to ACSS based on state mapping using the SERP, Who/Where tab to the Campus Program Locator Guide.

      • Field: Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    FA Request for a Release of Levy Only:
    Account is in ST 22 or 24 and either:
    • No levy was issued, or

    • A levy was issued, but is not causing an immediate hardship.

    1. If any levies were issued, but no hardship exists, as determined by IRM 5.19.4.4.10, Levy Release: General Information, do not release them. If no levy was issued, proceed to paragraph (c) below.

    2. Notify the taxpayer the levy release is denied and inform them of their right to speak to a manager to appeal the denial. If the manager sustains the decision to not release the levy, taxpayers have the right to appeal the decision. See IRM 5.19.8, Collection Appeal Rights. Also, see IRM 5.19.1.3.2(10), For All Employees.

    3. Inform the taxpayer verbally of the referral.
      If the case is being transferred to the field, advise the taxpayer it could take up to 90 days before the RO contacts them.

      Note:

      Encourage the taxpayer to make voluntary payments (if possible) in the meantime.

    4. Document AMS.

    5. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to ACS.

      • If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      • Provide the taxpayer or representative with the ACS toll-free number.

    6. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to the field.

      • If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    7. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • ACS: Forward correspondence received to ACSS based on state mapping using the SERP, Who/Where tab to the Campus Program Locator Guide.

      • Field: Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

    FA ST 60 and the taxpayer requests to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).
    1. Default IA. Input CC IADFL on IDRS. Follow instructions in IRM 5.19.1.6.4.19.1, Withdrawal of IA Requests.

      Note:

      The defaulting of an existing IA is based on the taxpayer request to revise the terms of the IA or the taxpayer is now unable to maintain the IA (possible CNC).

    2. Document AMS to show that the IA was defaulted and why. If a new IA was proposed, you must input TC 971 AC 043 if the request meets pending IA criteria and document the terms of the proposed IA on AMS. See IRM 5.19.1.6.4.7, Pending IA Criteria. Encourage the taxpayer to make voluntary payments (if possible) until the Revenue Officer contacts them.

    3. Inform the taxpayer verbally of the referral.
      If the case is being transferred to the field, advise the taxpayer it could take up to 90 days before the RO contacts them.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to ACS.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Input CC ASGNI 0120.

      • Provide the taxpayer or representative with the ACS toll-free number.

    5. If the account balance is more than ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) or ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF), transfer the case to the field.

      • Input CC STAUP 2200 for all Notice Status modules.

      • Reassign the account to 6541 on IDRS (Follow instructions in paragraph (8) below).

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    6. Do not request documentation. However, if documentation is received, forward it to the appropriate function. Do not destroy these documents.

      • ACS: Forward correspondence received to ACSS based on state mapping using the SERP, Who/Where tab to the Campus Program Locator Guide.

      • Field: Forward correspondence received to the appropriate field group based on state mapping using the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

      Note:

      Include Form 14425, Withdrawal of Request for Installment Agreement (or equivalent), with any documentation forwarded to ACSS or the field group.

  7. AM Employees: When handling an account exceeding ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF & BMF), transfer the call to ACS (Notice Status and ST 22):

    1. BOD is W&I:

      Language ... UCCE Extension
      English 1080
      Spanish 1071
    2. BOD is SB/SE:

      Language ... UCCE Extension
      English 1085
      Spanish 1076
    3. FERDI Accounts (ST 22): See IRM 5.19.18.2(3), Identifying FERDI Cases, for how to identify FERDI accounts.

      Language ... UCCE Extension
      FERDI ACS 1082

      Note:

      All FERDI ACS calls should be transferred per the above table, whether they are English or Spanish. The FERDI site (and its back-up sites) will utilize OPI Service instead of a Spanish assistor for Spanish calls.

    4. Request for Levy Release, see IRM 5.19.4.4.10(8), Levy Release: General Information.

  8. Forward documents to RO Group Manager based on Revenue Officer by TSIGN/ZIP/State look-up located on the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site. Use taxpayer’s ZIP Code.

    Note:

    The first two digits of the RO group number represent the AO number.

    1. Review the taxpayer’s Collection Assignment Code. This is a two-digit number that appears on CC ENMOD (COLL-ASGMT) and is the assigned Area Office (AO). Determine whether this is a W&I or SB/SE AO:

      AO ... BOD ...
      11-15 W&I
      21-27 SB/SE (Domestic)
      35 SB/SE (International, including Puerto Rico)

      Exception:

      There is no International W&I AO number. If the taxpayer lives in Puerto Rico or outside the U.S., the International SB/SE AO number of 35 should be used.

    2. Transfer the case:

      AO ... Transfer Steps ...
      W&I
      1. If the taxpayer’s current AO is a W&I number, the AO code must be changed to a SB/SE AO number. This can be done at the same time the assignment is changed.

        Note:

        RO assignments are made using SB/SE AO numbers.

      2. Overlay CC ENMOD with ENREQ bringing up INCHG.

      3. Change DOC-CD to 50.

      4. Input AO number in CLC field.

      5. Input "AO006541" in CASE-ASSN-NUM field.

        Example:

        Taxpayer’s ZIP Code is 30308. According to the RO by ZIP Code, the AO is 25. Enter "25006541" in the CASE-ASSN-NUM field.

      6. Input remarks (i.e., "Account Balance exceeds authority. Transferring case to field" ).

      7. Page up (transmit).

      SB/SE
      1. If the taxpayer’s current AO is a SB/SE AO number, change the assignment number.

      2. Use CC ASGNI/CC ASGNB by overlaying CC ENMOD.

      3. Input "6541" in the BGEE field.

      4. Input the AO number followed by 00 in the AOTO field.

        Note:

        Taxpayer’s ZIP Code is 30308. According to the RO by ZIP Code, the AO is 25. Enter "2500" in the AOTO field.

      5. Page up (transmit).

  9. When researching the account, if there are ST 26 modules, further research is required to determine where the case is assigned; follow the chart below to determine where the case is assigned and the appropriate action:

    If ... Then ...
    A balance due account TSIGN’d to "35XX6XXX" with a history indicating "MMIA"

    Note:

    MMIA now has multiple TSIGN’s depending on the location of the account, but they all begin with the assignment of Area Office "35" and the last four digits of the TSIGN begin with a "6" .

    1. Send Form 4442, Inquiry Referral, to the CCP site at the Philadelphia Campus:
      IRS-MMIA
      M/S 5-E04.117
      2970 Market St.
      Philadelphia, PA 19104-5002
      Send such items within three days using Form 3210, Document Transmittal, annotated with "MMIA"

    • A TSIGN 8000 - Balance due only case and

    • No return delinquency and

    • The taxpayer agrees with the ASFR assessment and

    • The balance due "is within" your authority level

    1. Change the TSIGN to 7000 using CC ASGNI/CC ASGNB; for input procedures, see IRM 2.4.27, Command Code ASGNI/ ASGNB (Formerly TSIGN), CC STAUP 2400 and attempt to resolve the case. If unable to immediately resolve the case, after the assignment changes to 7000, ST 24, TSIGN to 0000 using CC ASGNI/CC ASGNB and input CC STAUP for the appropriate number of cycles to complete working the case

      Example:

      Waiting for the taxpayer to send information CC STAUP 2206 or 2209 as appropriate.

    2. If ACS is working the case and it cannot be resolved the same day, bring the case back to ACS, input TSIGN 7000 using CC ASGNI/CC ASGNB; for input procedures, see IRM 2.4.27, Command Code ASGNI/ ASGNB (Formerly TSIGN), CC STAUP 2400, the following week TSIGN 0000 and CC STAUP 2200

    • A TSIGN 8000 - Balance due only case and

    • No return delinquency and

    • The taxpayer disagrees with the balance resulting from an ASFR assessment

    1. Change the TSIGN to 7000 using CC ASGNI/CC ASGNB; for input procedures, see IRM 2.4.27, Command CodeASGNI/ASGNB (formerly TSIGN)

    2. Input CC STAUP 2400; for information to provide the taxpayer to request a reconsideration: IRM 5.19.1.4.3.2(2), Adjusting Tax for a Balance Due.

    3. Provide the taxpayer with the address to send reconsideration return to ASFR; for address information: See SERP, Who/Where, ASFR - Reconsideration Returns - Centralized Processing Sites

    The taxpayer requests:
    • A transcript of the assessment for ASFR or

    • A copy of an ASFR Return

    1. If the assessment was made after June 2005, route the case to ASFR. See SERP, Who/Where, ASFR - Reconsideration Returns - Centralized Processing Sites

    2. If the assessment was made prior to July 2005, route the case to the Return and Income Verification Unit (RAIVS) at the campus where the assessment was made. See IRM 3.5.20-3, RAIVS Contacts.

    • A TSIGN 8000 - Balance due and

    • Return delinquency modules (COMBO)

    1. If there is a started ASFR (Dummy TC 150, or TC 971 AC 143 posted) case with no assessment or closing TDI transaction code, advise the taxpayer the delinquent return issue must be addressed first and refer to the ASFR toll-free line. The toll-free number to the appropriate ASFR site is located on the ASFR notice they received. A started ASFR case can be identified by a TC 150 for $.00, with the "SFR" indicator to the right of the DLN, or TC 971 AC 143 (for cases started after 7/1/2018). Started ASFR cases with no filed return or closing TDI transaction code, see IRM 5.18.1.5.5, Letter 2566 SC/CG (30-Day Letter), for default time frames after the ASFR TC 150 posts and is considered a balance due account

    2. If the ASFR was not started, see IRM 5.18.1.5.1, ASFR Dummy TC 150, input a CC STAUP 2200, change the TSIGN to "0000" , and process the case per IRM procedures addressing accounts with both TDI and balance due modules

    A Copy of a Closed Audit Report IRM 21.5.10.4.4, Copies of Audit Reports
  10. Once your research/interview is complete, and it is determined the tax liability is correct with a remaining outstanding balance, continue case processing; for additional information. IRM 5.19.1.4.3, Determine Correct Tax Liability.

  11. For correspondence, work the case per the request received in the correspondence. Follow disclosure guidelines and other procedures outlined throughout this section. IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party.

  12. If additional information is required to make a final case disposition, attempt to contact the taxpayer by phone or correspondence to request additional information; if making a phone attempt and contact is not made with the taxpayer, you must follow up with a letter requesting the additional information.

Taxpayer Information

  1. This subsection provides procedures for changing taxpayer entity information, such as address, name and obtaining the taxpayer's best contact number(s), if possible.

    Note:

    The best contact number should be placed in the "HOME FIELD" for IMF accounts and "BUSINESS FIELD" for BMF accounts on AMS. DO NOT verify/delete additional existing numbers during phone contacts.

    Note:

    If working correspondence, update the best contact number as appropriate.

    Exception:

    If documentation is present that indicates contact numbers were addressed within the past 13 cycles, then you are not required to request telephone numbers.

  2. ACS and ACSS employees (includes Field Assistance employees working ACS cases): When working a ST 22, ACS case, and telephone contact indicates an incorrect best contact number, use the table below to update the taxpayer account:

    If ... And ... Then ...
    The account has modules on ACS (ST 22), AMS is available and ACSWeb is open on AMS, Make changes using the AMS Update Contact tool.
    The account has modules on ACS (ST 22), AMS is not available and/or ACSWeb is not open on AMS, Make changes on the ACS Entity Screen.
    The account does not have modules on ACS, AMS is available, Make changes using the AMS Update Contact tool.
    The account does not have modules on ACS, AMS is not available, Make changes using IDRS CC TELEA, CC TELEC, CC TELED or CC DOALL.

    Note:

    When working an account on ACS and the telephone number is on ACS, you are not required to add the telephone number to IDRS.

    Note:

    If working correspondence, update the best contact number as appropriate.

  3. AM, CSCO, Field Assistance employees (including ACS and ACSS employees working non-ACS cases): You must attempt to secure the best contact number when speaking to taxpayers (or their authorized representatives) on all accounts if there is a balance due of any kind. If working correspondence and a phone number was provided, then update account if there is a balance due.

    Exception:

    AM phone assistors only: Verifying or securing phone numbers on accounts below deferral level is not required. See IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees. On accounts above deferral level, secure or verify the best contact phone number.

    Exception:

    AM phone assistors only: IMF assessed balance due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , except for request for Short Term Payment Plan. See IRM 5.19.1.4.1 (7), Account Actions on Referral/Redirects.

    Exception:

    Field Assistance TAC employees only: When contact is solely for the purpose of hand-delivering a payment and the account is in ST 60.

    1. If AMS is available, make changes using the AMS Update Contact tool.

      Exception:

      If AMS is not available, then make changes using IDRS CC TELEA, CC TELEC, CC TELED or CC DOALL.

    2. You are not required to secure/verify telephone numbers on the following accounts:

    • If the account is not active on IDRS.

    • ST 03: CSRs transferring cases to ACS without ACS access.

    • ST 12: No balance due modules. This also includes instances where the account balance is resolved within the same day, contact numbers are not required.

      Example:

      Payment Tracer - money located to full pay the balance, or on-line adjustment full paying the balance due, ST 12.

    • ST 22, 23 or 24: CSRs transferring cases to ACS without ACS access.

    • ST 26: Assigned to an RO. See IRM 5.19.1.4.1(7), Account Actions on Referral/Redirects.

    • ST 71: Unless modules in other statuses are present.

    • ST 72.

      Note:

      The TC 520 Closing Code Chart determines where the case resides: CDP/Appeals, Bankruptcy/Litigation, Tax Court or a Civil Penalty with Appeal Rights. Follow the TC 520 Closing Code Chart in Document 6209, IRS Processing Codes and Information, for the definitions of the CC to ensure the case is routed properly. Secure the best contact number if mixed statuses are present.

Entity and Address Changes
  1. For all oral statements regarding entity changes, see IRM 3.13.5.28, Entity Changes from Oral Statements and IRM 3.13.2.3.6, Change of Address.

  2. For correspondence requests, see IRM 3.13.5.47, Updating Address Records. For BMF correspondence requests, see IRM 3.13.2.3.6, Change of Address.

  3. For all other accounts, see IRM 21.1.3.20, Oral Statement Authority.

  4. If the account is in ST 26, do not change the Collection Location Code (CLC); only make the address change. The revenue officer makes the CLC change when they close their case control

  5. For operations other than Compliance, if a taxpayer moves outside the campus jurisdiction, change the address, but do not change the CLC field if there are balance due accounts in ST 48, 6X, 71 or 72. Refer to the Collection Operation at your campus to make a decision on changing the CLC. Indicate on the routing slip, or Form 4442, Inquiry Referral, the reason for referral and include your name and phone number in case contact is required.

  6. When working IAs with a Form 9465, Installment Agreement Request, if the address on the form is different than the address on CC ENMOD, and the customer checked the box indicating an address change, input the new address on IDRS. DO NOT change the address if the address is different, but the box is not checked, notate address in AMS comments.

  7. Using CC ENREQ with:

    • Doc. Code 63 allows the change of the address

    • Doc. Code 50 allows the change in the CLC

  8. If you do not input the change to the CLC using Doc. Code 50, the account remains at the campus where the IA was established; for additional information regarding use of Doc Codes 50 and 63 for an address change and the CLC also requires change, see IRM 2.4.9, Command CodesENREQ, INCHG, IRCHG, BNCHG and BRCHG.

  9. Follow the if and then chart below when a taxpayer notifies you of an address change on an existing IA. See the Post of Duty Listing on SERP or Document 6209, IRS Processing Codes and Information, pages 11-1 through 11-5 for AOTO assignment:

    If ... And ... Then ...
    The account is not in ST 60, 61, 63, or 64 The account already transferred to the new campus Input the IA using CC IAGRE
    The new address is within the current Territory Office jurisdiction The account is in ST 60 or 63 Input the new address using CC ENREQ, document code 63
    The new address is within the current Territory Office jurisdiction The account is in ST 61 or 64 and the cause of the suspension or default is remedied by the taxpayer

    Example:

    Missed payment(s) made up

    1. Input the new address using CC ENREQ, Doc. Code 63

    2. Reinstate the IA

    3. For a reinstated or revised IA, revise the user fee code to "R" and the user fee paid code to "N" , using CC IAREV, unless the origination fee is still due.

    The new address is within the current Territory Office jurisdiction The account is in ST 61 or 64 and the cause of the suspension or default is NOT remedied by the taxpayer

    Example:

    Missed payment(s)

    1. Input the new address using CC ENREQ, document code 63

    2. If speaking to the taxpayer, advise them to comply with the terms of their IA

      Example:

      Make up missing payments

    3. Secure payment by following related guidelines: IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs

    The new address is outside the Territory Office jurisdiction The account is in ST 60 or 63
    OR
    The account is in ST 61 or 64 and the cause of the suspension or default is remedied by the taxpayer
    1. Input the address using CC ENREQ and Doc. Code 63

    2. Reinstate the ST 61 or 64 IA

    3. For a reinstated or revised IA, revise the user fee code to "R" and the user fee paid code to "N" , using CC IAREV unless the origination fee is still due.

    The new address is outside the Territory Office jurisdiction The account is in ST 61 or 64 and the cause of the suspension or default is NOT remedied by the taxpayer
    1. Input the address using CC ENREQ and Doc. Code 63

    2. Take no action if the account is in ST 64

    3. When speaking to the taxpayer advise them to comply with the terms of their IA

      Example:

      Pay the unpaid IA payments

    4. IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs

  10. The BOD code change does not affect the IA, Installment Agreement Accounts Listing (IAAL), or the campus monitoring it. When the case updates to ST 60, the Collection Location Code (CLC) is set. When the account becomes full paid, the account will move to the appropriate campus if another balance due account generates.

    Example:

    Taxpayer is a W&I taxpayer living in California and enters into an IA; the Fresno Campus generates each CP 521, Installment Agreement Reminder Notice, and works the account if issues related to it arise on the IAAL. The following year, the taxpayer files Form 1040, U. S. Individual Income Tax Return, with Schedule C, Profit or Loss From Business, the BOD in which the taxpayer files, therefore, changes from W&I to SB/SE. The IA remains at the Fresno Campus, not moving to the Ogden Campus. When the balance due is full paid, the account moves to the Ogden Campus if another balance due account generates in the future.

  11. If AMS is used, the Primary Address Change Indicator is required when:

    • The IMF entity shows filing status 2 in the most current name line AND

    • The IMF address change is for the primary taxpayer, but not the secondary taxpayer.

  12. In this scenario, input a "1" when using CC INCHG, or check the box on the Update Contact Tool when using AMS. Failure to use the indicator also changes the secondary taxpayer address; for more information, see IRM 3.13.5.54, Inputting Domestic Address Changes.

Determine Correct Tax Liability

  1. The taxpayer may indicate verbally or in writing the tax liability is questionable, such as:

    • They do not owe the balance due

    • They dispute the amount owed

    • They do not know why they have a balance due

  2. Do not pursue collection if you are not able to determine the correct tax liability. You must, however, secure telephone numbers and levy sources to update the account with current information. See IRM 5.19.1.4.2, Taxpayer Information and IRM 5.19.1.4.4.2, Obtain and Verify Levy Sources. If there are prior histories on the account indicating the taxpayer has indicated doubt as to liability previously, and has submitted nothing to support that claim within 45 days since the last history, and it is apparent the taxpayer is attempting to delay collection, pursue collection.

  3. Follow procedures outlined in this subsection to refer the taxpayer inquiry to the appropriate office/area for further consideration.

    Exception:

    If the account balance is resolved within the same day, such as missing payment located to full pay the balance or on-line adjustment decreasing balance due to zero, and/or ST 12, then levy sources are not required.

  4. Follow the instructions below if you determine the tax liability is questionable and a referral to another office is appropriate. Input CC STAUP to suspend further notices for 45 days prior to referring the balance due inquiry to another office/area; see paragraph (5) below).

    If ... Then ...
    • IRM 5.19.1.4.3.1, Tax Liability Previously Paid

    • IRM 21.1.3.18, Taxpayer Advocate Service Case Criteria

    • IRM 5.19.1.5.18(4), Innocent Spouse

    • IRM 5.19.8, Collection Appeal Rights

    • IRM 5.19.1.4.3.2, Adjusting Tax for a Balance Due

    • IRM 5.18.1, Automated Substitute for Return (ASFR) Program, or reconsideration return (taxpayer filed a return after the ASFR assessment was made)

    Note:

    If the taxpayer requests an IA that MEETS criteria:
    IRM 5.19.1.6.4.7, Pending IA Criteria; input TC 971 AC 043 before referring the account to another office

    Automated Underreporter (AUR) See IRM 21.3.1.4.59, IMF Underreporter Letters
    SFR - Taxpayer disputes the assessment. See IRM 5.18.1, Automated Substitute for Return (ASFR) Program, and SERP, Who/Where, ASFR - Reconsideration Returns - Centralized Processing Sites
    The taxpayer claims income as wages and the employer reported the income made to a subcontractor Determine if the taxpayer qualifies for a Form SS-8, Determination of Worker Status for Purpose of Federal Employment Taxes and Income Tax Withholding, determination and referral; for detailed procedures, see IRM 21.7.2.5.3(1)-(3), Worker Classification Determinations
    Audit Reconsideration See IRM 21.5.10.4.3, Audit Reconsiderations
    CSED Reconciliation or Verification needed, Refer the account to a CSED Specialist per: SERP under Who/Where tab, CSED Referrals - Campus.
  5. If there is an open control base, contact the employee for case processing instructions. See IRM 21.5.2.3(5), Adjustment Guidelines - Research.

    Note:

    If the account has a TC 971 AC 043, and is controlled in "M" status and you can resolve the account, there is no need to contact the employee.

  6. Use CC STAUP to interrupt the normal notice routine by delaying, accelerating or skipping notices. Employees can request a notice be stopped by taking the following actions:

    1. Prepare Form 4442, Inquiry Referral /Letter 4442C, Inquiry Referral
      See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442.

    2. Forward Form 4442, Inquiry Referral /Letter 4442C, Inquiry Referral, to Output Review at the appropriate campus prior to the Wednesday before the 23-C date.

    Note:

    If time does not allow forwarding Form 4442, Inquiry Referral /Letter 4442C, Inquiry Referral, contact Output Review by telephone prior to 10:00 AM the Wednesday before the 23-C date. Form 4442, Inquiry Referral /Letter 4442C, Inquiry Referral, must be received in the campus Output Review Unit by the Wednesday before the 23-C date of notice. Notices not selected for review are mailed throughout the week. Notices selected for review are held until the Friday before the 23-C date.

Tax Liability Previously Paid
  1. When a taxpayer indicates they previously paid the tax liability and the payment or credit is not showing on the account; review additional information regarding payment tracers, see IRM 21.5.7, Payment Tracers.

  2. If payments were made through the Lockbox bank, see IRM 21.5.7.4.7.4, Lockbox Payments, and follow if and then chart below.

    If ... And ... Then ...
    An ACS case (ST 22), The taxpayer is on the phone,
    1. Allow the taxpayer to fax a copy of the front and back of any cancelled check, money order, or cash receipt while on the call.

    2. If faxing is not possible, give the taxpayer an appropriate deadline and ACSS address to mail a copy.

    3. Move to E2 or E3 ACS inventory as appropriate with a 45-day follow-up.

    ACS case (ST 22), Correspondence indicates payment was made,
    1. Send Correspondex Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, requesting a copy of the cancelled check.

    2. Move to E4 or E3 ACS inventory as appropriate with a 45-day follow-up.

    Non ACS cases, The taxpayer is on the phone,
    1. Allow the taxpayer to fax a copy of the front and back of the cancelled check while on the call.

    2. If faxing is not possible, give the taxpayer an appropriate deadline.

    3. Input TC 470.

    4. Provide the address for mailing.

    Non ACS cases, Correspondence indicates payment was made,
    1. Send Letter 167C, Payment Missing; Copy of Check/Money Order/ Cashier's Check Requested, requesting a copy of the cancelled check.

    2. Input TC 470.

  3. Upon receipt of the cancelled check, research for posting:

    1. If located, move the credit as appropriate; if an outstanding balance still exists after the credit transfer, resolve the remaining balance due as appropriate

    2. If payment resolves the total liability, but is not found, follow procedures and input TC 470 cc 93; for additional information, see IRM 21.5.7.4.6.9, Payment Not Located.

    3. If the payment does not resolve the liability and is not found, follow procedures and input TC 470 if not already input per paragraph (1) above, with no cc, and take appropriate actions to resolve the remaining balances; for additional information, see IRM 21.5.7.4.6.9(3), Payment Not Located.

  4. If you are unable to locate a payment made through the Electronic Federal Tax Payment System (EFTPS) refer to IRM 21.5.7.4.2, Payment Tracer Referrals to Hardcore Payment Tracer Function (HPTF).

Adjusting Tax for a Balance Due
  1. If an adjustment to the tax is required, follow the appropriate adjustment procedures:

    • IRM 21.5, Account Resolution

    • IRM 21.6, Individual Tax Returns

    • IRM 21.7, Business Tax Returns and Non-Master File Accounts

    Note:

    If tax liability is satisfied and there is an outstanding NFTL, see IRM 5.19.4.6.5, Lien Releases. Employees of functions with access to the Automated Lien System (ALS) input NFTL release requests in these circumstances; for functions not having access to ALS, determine and provide the Centralized Lien Operation (CLO) NFTL release contact on the Intranet by going to:

    • The IRS Intranet home page (IRWeb)

    • SERP

    • The Who/Where tab

    • ALS Units - Contacts

    Reminder:

    An internal use only telephone number is also provided along with the contact information on the CLO web site. Ensure all email communications regarding NFTLs are via secure messaging.

    Note:

    Consider providing the taxpayer Pub 1468, Guidelines for Processing Notice of Federal Tax Lien Documents, if the taxpayer has additional questions about the NFTL or refer the taxpayer to IRS.gov to retrieve the publication.

  2. If the taxpayer disputes a balance due as a result of an SFR/ASFR assessment, and claims they filed with their spouse, prepare Form 4442, Inquiry Referral, and forward it to SFR/ASFR. See IRM 5.19.1.3.6(14), For Other Account Issues Requiring Referrals or Redirect, for processing sites. If the taxpayer disagrees with the assessment and has not previously filed, advise them to prepare and file an original return showing the correct income, exemptions, filing status, and deductions. An SFR/ASFR assessment can be identified by the following:

    1. TC 150 for .00 with literal "SFR" next to it, or TC 971 AC 143 (for cases started after 7/1/2018).

    2. Tax class 2 with Doc Code 10 in the DLN.

    3. Blocking series 000-299.

    4. No AGI present on the module.

    5. TC 290 (Collection ASFR assessment) or TC 300 (Examination SFR assessment) with blocking series 540-549 or 640-649. For addresses to which ASFR reconsiderations requests/cases are sent, see SERP, Who/Where, ASFR - Reconsideration Returns - Centralized Processing Sites.

    6. TC 599 with cc 088, no response to ASFR notifications.

    7. TC 599 with cc 089, taxpayer filed an original return. If you receive a reconsideration of an Examination SFR, follow appropriate procedures. See IRM 4.13.3.8, Closing Procedures.

      Note:

      If the taxpayer files a return after TC 599 cc 089 is input, this is considered an amended return, not a reconsideration. Do not route these to ASFR. See IRM 21.3.3.4.9.2.1, Compliance Criteria for Amended Returns/Claims and/or Balance Due Correspondence.

    8. TC 599 with cc 013, indicates taxpayer agreed to the proposed assessment.

  3. If the ITAS in Field Assistance working the account does not have a Form 809 Book, Receipt for Payment of Taxes, they do the input online. If the ITAS does have a Form 809 Book, they prepare Form 4442, Inquiry Referral, and submit it to their manager for approval and assignment for the input.

Tax Liability Determined

  1. This subsection provides the steps for continuing the interview/research process for a balance due and/or return delinquency account.

Full Compliance Check
  1. A full compliance check is required to identify if the taxpayer filed and paid all types of tax, penalties and interest for which they are liable. Ensure balance due and return delinquency modules, including cross-reference taxpayer identification numbers displayed on all MFs, are researched. Document full compliance check on AMS.

  2. Always review comments on AMS to determine whether a full compliance check (FCC) was previously performed. If completed within the last 30 days, it is not necessary to perform it again.

    Note:

    For ACS users, ensure you also review the ACSWeb Comments screen.

  3. Establish whether the taxpayer filed all returns as required in IRM 5.19.2.6.4.6, IMF - Determining Liability, and IRM 5.19.22.5.3, BMF Return Delinquency Responses and Inquiries, (or a module was closed or can be closed, with a satisfying transaction code). Individuals in business as sole proprietors must be in compliance with both individual and business filing requirements, including the following guidelines:

    1. If TDI modules closed with a TC 597 cc 012 or TC 598, you must satisfy these modules by securing a tax return or making a determination the taxpayer is not required to file

    2. If the taxpayer is required to file, request the returns and reverse the TDI modules with a TC 592 with no cc

    3. Determine liability to file; for IMF, see IRM 5.19.2.6.4.6, IMF - Determining Liability. For BMF, see IRM 5.19.22.5.3, BMF Return Delinquency Responses and Inquiries.

    Note:

    See paragraphs (4)-(5) for procedures addressing current year returns.

    Exception:

    AM employees - When conducting a full compliance check for BMF taxpayers and there is an open TDI module(s), please refer to IRM 5.19.1.6(5), Methods of Payment. AM will not perform the research required to close out the TDI. This includes taxpayers who state they are out of business or are not liable. Also, refer to IRM 5.19.1.3.3, For AM Employees.

  4. IAs cannot be established if a return is required to be filed. When speaking to the taxpayer, address compliance on current year return filing as follows:

    If the taxpayer contact date is... Then ...
    It is before:
    • The return due date, or approved extension date (TC 460) (IMF), or

    • The return due date (BMF),

    Ask the taxpayer if the return was filed:
    1. If "Yes" , ask if it is a balance due or refund return and when it was filed,

      • If a refund return (regardless of when filed), proceed with the case disposition.

      • If a balance due return and filed ten weeks ago (or less), include the liability in the case disposition.

      • If a balance due return and filed more than ten weeks ago, document AMS and continue with normal case processing; securing the return is not required.

    2. If "No" , continue with normal case processing; securing the return is not required.

    It is within:
    • 10 weeks of the return due date, or approved extension date (TC 460) (IMF), or

    • 20 weeks of the return due date (BMF),

    Ask the taxpayer if the return was filed:
    1. If "Yes" , ask if it is a balance due or refund return and when it was filed.

      • If a refund return (regardless of when filed), proceed with the case disposition.

      • If a balance due return was filed ten weeks ago (or less), include the liability in the case disposition.

      • If a balance due return was filed more than ten weeks ago and it has not posted, you cannot grant an IA without securing them. The taxpayer does not meet pending IA criteria. See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

        Note:

        If an IMF taxpayer filed electronically and it is prior to cycle 20, an IA may be granted if all other criteria is met; include the liability in the case disposition. See IRM 5.19.1.6.4.15(4)(d), Pre-Assessed IA Requests.

        Note:

        If the taxpayer is eligible for CNC hardship but has unfiled returns, IRM 5.19.17.2.1.3(4)-(5), CNC Unable to Pay - Hardship.

    2. If "No" the taxpayer has not filed all required returns; you cannot grant an IA without securing them. The taxpayer does not meet pending IA criteria. See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

      Note:

      If the taxpayer is eligible for CNC hardship but has unfiled returns, IRM 5.19.17.2.1.3(4)-(5), CNC Unable to Pay - Hardship.

    It is more than:
    • 10 weeks of the return due date, or approved extension date (TC 460) (IMF), or

    • 20 weeks of the return due date (BMF),

    The taxpayer has not filed all required returns; you cannot grant an IA without securing the returns. The taxpayer does not meet pending IA criteria. See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

    Note:

    If the taxpayer is eligible for CNC hardship but has unfiled returns, IRM 5.19.17.2.1.3(4)-(5), CNC Unable to Pay - Hardship.

  5. While working correspondence, compliance should be addressed on the current year return as follows:

    If ... Then ...
    It is before:
    • The return due date, or approved extension date (TC 460) (IMF), or

    • The return due date (BMF),

    Process the correspondence. Continue with normal case processing; securing the return is not required.
    It is within:
    • 10 weeks of the return due date, or approved extension date (TC 460) (IMF), or

    • 20 weeks of the return due date (BMF),

    Process the correspondence. Continue with normal case processing; securing the return is not required.
    It is more than:
    • 10 weeks after the return due date, or approved extension date (TC 460) (IMF), or

    • 20 weeks after the return due date (BMF),

    1. The taxpayer has not filed all required returns; you cannot grant an IA without securing the returns. The taxpayer does not meet pending IA criteria. See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

    2. Send an appropriate Correspondex letter requesting the return. Advise the taxpayer an IA cannot be considered at this time.

      Note:

      If the taxpayer provides a financial statement that shows they meet CNC hardship criteria, follow the procedures in IRM 5.19.17.2.1.3(4)-(5), CNC Unable to Pay - Hardship.

  6. If the taxpayer is liable to file and needs income information to file the return, use the Transcript Delivery System (TDS); for additional information, see IRM 21.2.3.4, TDS Transcript Delivery Methods. TDS delivers tax account and return information to the taxpayer with an appropriate cover letter.

  7. If the taxpayer is liable to file, instruct them to file as follows:

    1. If an ACS call site telephone inquiry, direct the taxpayer to mail the missing return to the appropriate ACSS Site.

    2. If the return delinquency is in ASFR, and the taxpayer has received an ASFR notice direct the taxpayer to mail the return to ASFR site's address that appears on the notice.

    3. For all others, including accounts where it is assigned 8000 but there is no Dummy TC 150 present on the module, direct the taxpayer to mail the missing return to the appropriate address using SERP, Who/Where, Where to File - Forms and Payments.


    See IRM 5.18.1.6.1(1), ASFR Dummy TC 150, for instructions on how to identify an ASFR started case.

Express Filing Compliance Check
  1. Employees may use the Express Filing Compliance Check when performing the compliance check for SIAs.

  2. Express Filing Compliance Checks will be performed using the following guidelines:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Taxpayers who meet the above criteria, have no other filing compliance issues and otherwise qualify for a SIA, will be considered to be in filing compliance.

  4. The Express Filing Compliance Check does not apply to:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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      Note:

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Reminder:

    Taxpayers who are not in filing compliance (per the above criteria) do not qualify for Pending IA criteria and do not qualify for treatment under these procedures.

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Obtain and Verify Levy Sources
  1. When speaking to the taxpayer or their authorized representative regarding a balance due account, employees must attempt to secure levy sources.

  2. Employees are not required to obtain or verify levy sources on the following:

    • TDI only cases (ST 02 or 03).

    • ST 12 cases.

    • On any account where ACSWeb, AMS or CC ENMOD indicate levy sources were confirmed or updated within the last three months or 13 cycles.

    • On any cases where the total accrued balance is below deferral.

    • An adjustment to the account will resolve the balance due, or other action will resolve the balance due within the same day.

      Example:

      A misapplied payment located or an on-line adjustment.

    • ST 26: Assigned to an RO. See IRM 5.19.1.4.1(7), Account Actions on Referral/Redirects.

    • When transferring the call to ACS.

    • Accounts that are in ST 53, or requests for CNC accompanied with Form 433-F, Collection/Information Statement.

    • ST 60 cases or IA requests (including correspondence with Form 433-D, Installment Agreement, or Form 9465, Installment Agreement Request.

      Note:

      This includes Field Assistance TAC employees when contact is solely for the purpose of hand delivering a payment and the account is in ST 60.

    • ST 71 cases, or OIC correspondence requests accompanied with Form 656, Offer in Compromise.

      Exception:

      If the account includes modules in ST 71 and modules in other statuses, then employees are required to obtain or verify levy sources (if no other conditions in paragraph (2) are met).

    • ST 72 cases, bankruptcy only, unless modules in other statuses are present.

    • Standalone Individual SRP. See IRM 5.19.1.5.16.1, Standalone SRP.

  3. Unless the account meets one of the exceptions listed in paragraph (2) above, ACS, ACSS and Field Assistance employees working ACS cases must follow the procedures in IRM 5.19.4.3.6, Obtain, Verify and Update Levy Sources, for obtaining and verifying levy sources on ST 22 cases where the balance due meets or exceeds deferral. See IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees, for information on deferral amounts.

    1. Examples of what representatives should say when verifying (or securing) levy sources are:

      Suggested Language
      "May I have the name and address of your current employer?"
      Ask if there are any additional employers or sources of income.
      "May I also have the name and address of your current bank or financial institutions?"
      Ask if the taxpayer has any additional banks or credit unions.
  4. Unless the account meets one of the exceptions above, all employees working accounts where no module is in ST 22 (ST 23 or ST 24), where the balance due is above deferral, (see IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees, for information on deferral amounts) must follow the procedures below:

    1. Verify levy sources on IDRS using CC LEVYS if they have not been confirmed in the last 13 cycles.

      Note:

      AMS or CC ENMOD indicates levy sources were confirmed or updated within the last three months or 13 cycles.

      Note:

      If no modules are active on IDRS, then CC LEVYS will not be available.

    2. If the taxpayer/representative provides a new levy source, ask for the source’s complete address. Use CC LEVYE to add levy sources to IDRS. If the taxpayer or representative does not have the address of the levy source available, employees can check the National Levy Source Look-Up available on SERP. If the levy source is not listed, document information provided using AMS History.

    3. If, after verifying existing sources, there are no sources on CC LEVYS, employees are required to attempt to secure one potential levy source; (i.e. wage, self employment, bank, etc.).

    4. Obtain the name, address and ZIP Code of any source added.

    5. Note in AMS comments levy sources were validated.

Balance Due Taxpayer Education (Cause and Cure)
  1. In order to prevent future tax delinquencies, it is important to determine what caused the taxpayers current balance due or return delinquency; once you understand the reason for the problem, you can recommend a cure or plan of action the taxpayer can follow to prevent the problem from recurring. Unless the taxpayer corrected the problem and the current year return is full paid, you must do this while on the phone or when answering correspondence. Document in AMS comments cause, cure and compliance (CCC) was completed.

    Note:

    If cause, cure and compliance is entered in comments and there are no new delinquencies since the initial cause and cure discussion, you are not required to address cause and cure again.

  2. If the account is a balance due, it is important to remember, in general, tax withheld from wages, pension, or annuity income, estimated tax payments, or a combination of both must constitute either 90% of the tax liability for the taxable year or 100% of the tax liability for the preceding taxable year; for further guidance and exception criteria:

    • See IRM 20.1.3.2.1.1, Determining the Required Annual Payment

    • See IRM 20.1.3.3.1.1, Determining the Required Payment Amount

  3. If the account is a return delinquency or there are unfiled returns due within the period specified in IRM 5.19.2.6.4.6, IMF - Determining Liability, or IRM 5.19.22.5.3.1, BMF Response with No Returns, educate the taxpayer about their filing requirements; for additional information. IRM 5.19.1.4.4.1, Full Compliance Check.

  4. You must do this when speaking to the taxpayer via phone or when answering correspondence.

  5. The following are typical examples of causes and cures:

    Causes ... Cures ...
    The taxpayer does not have enough income tax withheld from wages.
    1. Inform the taxpayer if they incur any additional tax liability or fail to file any future tax year returns, the IRS can issue a notice to their employer directing the employer to withhold at the highest rate.

    2. Advise taxpayer to correct Form W-4, Employee's Withholding Allowance Certificate. They can use this to increase their withholding by either reducing the number of allowances, or having additional tax withheld each pay period.

    3. The taxpayer can calculate the proper withholding allowances by using the Tax Withholding Calculator at IRS.gov.

    4. Remind taxpayers, when applicable, they may withhold from their Social Security, Unemployment, etc., with Form W-4V, Voluntary Withholding Request.

    The taxpayer adjusted withholding during the year, but still owes tax on the current year because of the withholding rate for the earlier part of the year.
    1. Advise the taxpayer to confirm withholding is correct to avoid future delinquencies.

    2. The taxpayer can calculate the proper withholding allowances by using the Tax Withholding Calculator at IRS.gov.

    The taxpayer does not make estimated tax payments because they are unaware of or do not understand the requirements.
    1. Advise the taxpayer they may be subject to estimated tax payment requirements. Refer them to Form 1040-ES, Estimated Tax Income for Individuals.

    2. If the taxpayer has internet access, advise taxpayer to access the following Publications via IRS.gov:

      • Publication 334, Tax Guide for Small Business, and/or

      • Publication 505, Tax Withholding and Estimated Tax.


      for taxpayers with interest, dividend, and other non-wage income; for additional information regarding estimated tax, see IRM 21.6.3.4.2.3, Estimated Tax (ES).

    3. If the taxpayer does not have internet access, then offer to send these publications.

    The taxpayer is not making Federal Tax Deposits for employment, excise or corporate taxes.
    1. Advise the taxpayer they may be subject to FTD requirements. See IRM 21.7.2.3.4, Deposits

    2. If the taxpayer has internet access, advise taxpayer to access the following Publication via IRS.gov: Publication 15, Circular E, Employers Tax Guide.

      Note:

      If a business, other than a sole proprietorship, explain the officers or partners of the business can be held personally liable for unpaid trust fund taxes by being assessed a TFRP by an RO.

    3. If the taxpayer does not have internet access, then offer to send this Publication.

    The taxpayer did not file because they did not know how to complete a tax form. Advise the taxpayer assistance is available each filing season:
    • Through VITA or TCE for IMF taxpayers.

      Note:

      See IRM 21.3.4.11(3), Return Preparation Referrals, and IRM 21.3.5.4.4.1, Directing Taxpayers to Taxpayer Assistance Centers (TAC).

    The taxpayer states they do not have the income information to file prior year returns. Provide income information via TDS, or CC IRPTRW; if needed, send the corresponding tax forms via ELITE, see IRM 21.2.1.10, Enterprise Logistics Information Technology [ELITE].
  6. Document in AMS comments cause, cure and compliance (CCC) was completed.

Balance Due Collection Statute Expiration Date (CSED) Considerations
  1. You must consider the Collection Statute Expiration Date (CSED) when addressing a balance due account. The CSED is a time period established by law to collect taxes. The CSED is normally ten years from the date of an assessment; however, a number of events, such as the filing of an Innocent Spouse claim or bankruptcy will suspend the ten year period. Guidance for determining the CSED can be found in IRM 25.6.1.12, Collection Statute Expiration Date.

  2. If full payment cannot be secured by the CSED, and the taxpayer has some ability to pay, the government can grant a partial PPIA. If any modules will not be full paid prior to the CSED and the taxpayer has some ability to pay, consider a PPIA. See IRM 5.19.1.6.5, PPIA.

  3. If a PPIA is being considered, a financial statement is required to determine the taxpayer's ability to pay, you must use the IAT Compliance Suite Payment Calculator or CC ICOMP to calculate full payment and determine if the account will full pay before any CSED expires.

Balance Due Collection First Read Process (CFRP) Mail Desk Procedures

  1. Without accessing IDRS to make a determination, pre-sort and extract mail easily identified as not meeting CFRP criteria such as Form 656, Offer in Compromise, Trust Fund Penalty, and TDI to be batched as First Read in separate batches under the document types specified or forwarded to the appropriate function for processing if not controlled on AMS.

    Note:

    If the tax year is not identified in the taxpayer's correspondence, control the case to the current tax year.

  2. Place balance due receipts in folders in batches of up to 50 and date stamp the folder with the Collection received dated. (Do not date stamp each individual piece of mail as AMS will record both the IRS received date and that of CSCO.)

  3. Following AMS procedures, enter the batches on AMS under the First Read category under the appropriate OFP and document type.

    Note:

    Until the new OFPs are established on AMS for First Read, use the existing OFP codes on AMS. The new OFP codes are established and must be used on your Form 3081, Employee Time Report.

  4. Shelve the batches of work in date order or to assigned employee as management has designated.

  5. After the batch has been completed and released by Quality and managerial review, the batch will be returned to the clerks for stripping and destroying documents or forwarding to other areas as appropriate.

Collection First Read Process - CFRP
  1. In First Read (CFRP), work cases that can be closed within Five (5) minutes following appropriate balance due procedures in this IRM. The following are examples of some of the types of cases you should work, but there could be others.

    • Here is my payment

    • Address Change

    • Telephone number input

    • Misroutes (Cases belonging to Exam, AM, etc.)

    • ST 72, 22, 71, and 26 (Route to appropriate area)

    • Requests for balance due amount

    • SIA

    • Open control base

    • Can't Pay (No financial statement is needed if balance below deferral; see IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees.)

    • Short Term Payment Plan (up to 120 days)

    • Did you receive my payment

      Note:

      ST 72, 22, 71, and 26 (Route to appropriate area) ST 72 route based on the TC 520 cc; CDP/Appeals, Bankruptcy, Litigation, Refund Litigation, Tax Court, Civil penalty with Appeal Rights. Follow the TC 520 cc Chart in Document 6209, IRS Processing Codes and Information, for the definitions of the codes to ensure the case is routed properly.

  2. Those cases you are not able to close within the batch under CFRP procedures, you will put into the Suspended status on AMS and AMS will move to the Ready to Work category to be worked by the technical units.

  3. Management may, at times, move batches of work not started out of the CFRP inventory into the Ready to Work inventory by placing them in a Suspended status on AMS. These batches will then be assigned to the technical employees assigned to work this inventory. (Initially the clerks may be required to manually suspend each of the cases in the folder and then the manager will reassign the batches to the Unassigned Queue. The manager in the technical units would then have to move out of the Queue into their employees' inventories. We are requesting AMS be updated to do this for us systemically as soon as possible.)

  4. Take all actions on cases following normal balance due procedures.

  5. After all cases in the batch have been worked either by resolving and closing or putting into the suspended inventory, separate the batch. The closed cases will stay with the original batch sheet and be placed for quality and managerial reviews. Those cases in suspended will be placed in a new batch. Print the new batch sheet and put on the front of the new batch. Place folder in a designated area to be distributed to the technical unit employees under the Ready to Work category.

Balance Due Special Considerations

  1. This subsection provides additional guidelines for handling balance due accounts for the following types of casework:

    • NMF Balance Due Accounts

    • Insolvency issues

    • Deceased Taxpayers

    • TFRP issues

    • Credit Offset (TC 130)

    • FERDI issues

    • Disaster/Emergency Relief

    • Military Deferment

    • Tax Court Cases

    • Killed in Terrorist Action (KITA), Killed in Action (KIA), and Astronauts Killed in the Line of Duty

    • Taxpayers Taken Hostage in Terrorist Action (HSTG)

    • Criminal Investigation Division Indicators (CID) on balance due cases

    • LLC Accounts

    • Criminal Restitution Assessments

    • Affordable Care Act

    • Erroneous Refunds

    • Innocent Spouse

    • Passport Certification in Case of Certain Tax Debts

    • Pension Benefit Plans

    • Private Debt Collection

    • Special Compliance Personnel (SCP) Program

NMF Balance Due Accounts

  1. The Automated Non-Master File (ANMF) System is an accounting and data control of NMF accounts. The following instructions pertain only to automated NMF accounts.

  2. NMF accounts are established by Accounting Operations and maintained on the ANMF database for accounting of the tax assessments and collection of revenue.

  3. A NMF account reflects an assessment of tax from a return or another source document and, by itself, usually does not represent the entire liability for a tax period. A separate NMF account establishes for each additional tax assessment.

  4. NMF is subject to the same examination, criminal investigation, and general data processing criteria as the MF.

  5. Input a history item on the ANMF System for each period involved whenever an action is taken on the account.

    Caution:

    Any NMF account on IDRS, regardless of status, is only an information item and not necessarily an accurate picture of the current status of the account.

NMF Notice Responses
  1. NMF responses are received from a taxpayer due to a notice issued by Accounting Operations.

    Note:

    For calls regarding NMF notices received other than via 888-829-7434, the CSR may answer questions if they have the ability and expertise to do so; if not, ask the taxpayer to call 888-829-7434, at which a specialist is available to help. DO NOT REFER CALLS ON OTHER ISSUES TO THIS NUMBER. ALSO, THIS TOLL FREE NUMBER IS FOR CALLS FROM TAXPAYERS OR TAXPAYER REPRESENTATIVES ONLY; for additional information, see IRM 21.7.12.5.1, NMF Toll- Free Number.

  2. Review CC ENMOD on the MF for a TC 130 ("V-" freeze) on all responses; if TC 130 is not present, follow procedures for input instructions. See IRM 5.19.10.3, Credit Offsets.

  3. Take the following actions on AAB (CC SUMRY) due on NMF accounts less than established criteria; for additional information for balance due amounts for individuals or businesses, see IRM 5.19.1.5.1.1, NMF Notice Responses.

    If ... Then ...
    The taxpayer states they are unable to pay
    1. Complete Form 3177, Notice of Action for Entry on Master File, to request the account be placed in CNC status (TC 530)

    2. Forward Form 3177, Notice of Action for Entry on Master File, to Accounting Operations using Form 3210, Document Transmittal

      Note:

      If taxpayer does not qualify for a CNC exception IRM 5.19.17.2.1.2(1), CNC Exception Processing), you must review their financial statement to determine if taxpayer qualifies for a CNC, IRM 5.19.17, Campus Currently Not Collectible and Offers in Compromise

    3. If taxpayer qualifies for a CNC advise the taxpayer collection action will not be pursued at this time; however, penalty and interest continue to accrue

    4. Inform the taxpayer they will receive a yearly reminder notice via regular mail

    5. Input history on the ANMF System

    The taxpayer requests additional time to pay
    1. Send Letter 681C, Proposal to Pay Later Accepted, accepting the taxpayer’s proposal to pay

      Note:

      The maximum time to allow for a Short Term Payment Plan is 120 days.

    2. Ask the taxpayer to place an "N" after their taxpayer identification number when making a payment and enclose a copy of this letter

    3. Advise the taxpayer a final notice will be issued; however, collection action will not be pursued at this time

    4. Forward to Accounting Operations, via Form 3210, Document Transmittal, Form 3177, Notice of Action for Entry on Master File, requesting input of TC 530, and Form 4442, Inquiry Referral, requesting the fourth notice is issued

    5. Input history on the ANMF System

    The notice response indicates a deceased, bankrupt or incarcerated taxpayer
    1. Send Form 4442, Inquiry Referral, via Form 3210, Document Transmittal, to Accounting Operations requesting a TDA be issued regardless of the dollar amount

    2. Input history on the ANMF System

  4. Take the following actions on NMF responses with an AAB (CC SUMRY) due of more than ≡ ≡ ≡ for individuals and ≡ ≡ ≡ ≡ ≡ for businesses:

    If ... Then ...
    The taxpayer requests additional time to pay
    1. Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, and advise they make payments when they can; however, a request is being referred to the field for processing the taxpayers request

    2. Ask the taxpayer to place an "N" after their taxpayer identification number when making a payment and enclose a copy of this letter.

    3. Advise the taxpayer a final notice will be issued.

    4. Prepare and send Form 4442, Inquiry Referral, via Form 3210, Document Transmittal, to Accounting Operations requesting a fourth (final) notice be issued;

    5. Input history on the ANMF System.

    The taxpayer states they are unable to pay
    1. Send Form 4442, Inquiry Referral, via Form 3210, Document Transmittal, to Accounting Operations requesting a referral to the field with accompanying Form 4442, Inquiry Referral.

    2. Input history on the ANMF System.

    The notice response indicates a deceased, bankrupt or incarcerated taxpayer
    1. Send Form 4442, Inquiry Referral, via Form 3210, Document Transmittal, to Accounting Operations requesting a referral to the field with accompanying Form 4442, Inquiry Referral.

    2. Input history on the ANMF System.

  5. Take the following actions if the taxpayer indicates they filed an appeal with the U.S. Tax Court:

    1. Notify Accounting Operations to input TC 470 with the appropriate cc.

      Caution:

      Only advise Accounting Operations to input 470 with cc 90 when an account will go to ST 12 due to full payment. See IRM 5.1.15, Abatements, Reconsiderations and Adjustments.

      Request TC 470 cc 90 on the account using Form 3177, Notice of Action for Entry on Master File, via Form 3210, Document Transmittal

    2. Route the correspondence or Form 4442, Inquiry Referral, to the appropriate field Advisory Unit.

    3. Input history on the ANMF System indicating the account was forwarded to the field

  6. Take appropriate actions when the taxpayer responds to any notice including a Form 9774, Annual Reminder Notice:

    If ... Then ...
    The taxpayer requests a payoff amount or a third party indicating a willingness to pay the debt. IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party
    1. Give the taxpayer/third party the payoff amount using CC COMPA if the account shows on IDRS

    2. Input history on ANMF including the payoff amount and date

    3. If not on IDRS, prepare Form 4442, Inquiry Referral, and forward to Accounting Operations

    4. Advise the taxpayer you are referring the inquiry to another office

    The taxpayer requests an IA
    1. Determine if taxpayer qualifies for an IA, including AAB (CC SUMRY): IRM 5.19.1.6.4, Installment Agreements (IAs)

    2. If any module is in ST 53, review the account to determine if TC 530 should be reversed

    3. When the reversal is appropriate, send Form 3177, Notice of Action for Entry on Master File, to Accounting Operations for input of TC 531

    4. When the reversal is not appropriate, review detailed rejection procedures before requesting the taxpayer send payments when they can. IRM 5.19.1.6.4.9, IA Rejection Criteria.

      Note:

      No formal IA is established.

    5. When the account is in Notice Status or the request for a TC 531 is submitted to Accounting Operations:
      Send Form 4442, Inquiry Referral, with IA information to Accounting Operations requesting the account be referred to the field, update to ST 26 and TSIGN 3500 6996.
      Follow MMIA procedures, see IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.
      Prepare the case to be forwarded to CCP from the Accounting Operations.
      Prepare Form 3177, Notice of Action for Entry on Master File, requesting input of TC 971 AC 063 and forward to Accounting Operations.
      Advise the taxpayer it is in their best interest to begin making payments to reduce penalty and interest accruals. Include their SSN and an "N" following the number on the check or money order; also, advise they attach a copy of the notice they receive with their payment.

    6. When the account is in TDA status and assigned to a RO (ST 26):
      Forward Form 4442, Inquiry Referral, with payment request information to the assigned RO; the TSIGN indicates the group number and revenue officer number. (See Document 6209, IRS Processing Codes and Information, 11-3)
      Prepare Form 3177, Notice of Action for Entry on Master File, requesting input of TC 971 AC 043 and forward to Accounting Operations
      Input history on the ANMF System.
      Advise the taxpayer to begin making payments and put their SSN with an "N" following the number on the check and attach a copy of the notice they receive

CSCO Hard Copy NMF TDAs
  1. Input assignment code "6466" using CC ASGNI/CC ASGNB when the NMF TDA is received from Accounting Operations; for input procedures. See IRM 2.4.27, Command CodeASGNI/ASGNB (formerly TSIGN).

  2. Count each balance due Notice reply; if more than one notice is received with or without correspondence attached, count each notice response regardless of the MFT/tax period.

  3. If a MF account is in ST 22 and there is also a NMF balance due, all modules must be accelerated to the field and assigned to a RO.

  4. Do not take a count on clerical duties relating to balance due cases.

NMF Adjustment File
  1. CSCO receives a photocopy of cases in ST 89 for filing in the NMF Adjustment File.

    Example:

    Husband only, wife only, non-petitioning spouse, transferee/transferrer.

  2. Maintain the file by tickler system; a tickler system is a method used to remind you to take follow-up action on a case.

  3. Research IDRS and take actions listed in the chart below within 60 days after the adjustment is completed:

    Caution:

    If the NMF account on IDRS is in ST 89, IDRS is only an information item and not necessarily an accurate picture of the ANMF.

    If ... Then ...
    No balance remains
    1. Complete Part 7 of Form 668 if a TC 582 is posted to the account

    2. Indicate the full paid information (date the account was full paid)

    3. Sign and date the green copy (upper right)

    4. Forward Form 668 with the green copy (Part 7) on top to the Advisory Unit via Form 3210, Document Transmittal

    5. Input CC STAUP 12 for each fully paid module

    6. Destroy the photocopy of the case

    7. If the module contains a TC 780, send a print to the OIC Unit

    There is a remaining balance due
    1. Review IDRS every 30 days, not to exceed six months, until the pending adjustment is resolved or no balance due remains on the account

    2. Follow instructions outlined in this table when the account is fully paid

    A potential refund situation exists following the adjustment action
    1. Accounting Operations forwards an ANMF transcript to CSCO

    2. Determine if there are other outstanding balance due liabilities for the entity

    3. Research CC ENMOD for a TC 130 before allowing the refund to issue

NMF Semi-Annual Delinquent Accounts Inventory Profile (DAIP)
  1. As a result of ICS case management, CSCO no longer processes DAIP.

Insolvency Issues

  1. When a taxpayer files for protection under the Bankruptcy Code, collection actions are suspended. Generally, the Centralized Insolvency Operation (CIO) is responsible for inputting Transaction Code (TC) 520 to each module covered under the bankruptcy. This action terminates notice generation, aside from a first notice, and places the modules in ST 72.

    Exception:

    TC 520 cc 84 does not automatically move to ST 72.

  2. Due to timing issues between the input of TC 520 and ACS account actions taken, enforcement action could be taken. To eliminate these violations, Insolvency accessed ACS to release levies and continue with necessary actions on bankruptcy cases.

  3. If the account is in ST 72, verify the TC 520 cc is for insolvency. (See Document 6209, IRS Processing Codes and Information, Section 11, TC 520 cc Chart.)

  4. Clearly document all actions outlined in this subsection on AMS comments.

  5. CSCO may receive Official Form 18, Discharge of Debtor, from various states. CSCO must route these forms to CIO:

    Mailing Address Private Delivery Service (PDS) Mailing Address
    Centralized Insolvency Operation
    PO Box 7346
    Philadelphia, PA 19101-7346
    Centralized Insolvency Operation
    2970 Market St., Mail Stop 5-Q30-133
    Philadelphia, PA 19104-5016
Contacts Regarding Insolvency Issues
  1. Do not automatically refer the taxpayer to the CIO when contacted and all or part of the account is in ST 72. First, determine the reasons for the call or correspondence and address any non-insolvency related issues as appropriate.

  2. If the taxpayer is calling to request an IA for post-petition liabilities while in Chapter 13 bankruptcy, advise the taxpayer that an IA cannot be granted. Inform the taxpayer that voluntary payments can be made on post-petition periods, however.

  3. If the taxpayer is calling to request an IA after discharge from a Chapter 7 bankruptcy, and some modules on the account remain in ST 72, contact CIO to determine if it is permissible to grant an IA on only the modules not in ST 72.

    1. Refer the taxpayer to the CIO toll free number, 800-973-0424, for questions regarding the bankruptcy proceedings, or you may transfer the call as shown below:

      Function ... UCCE Extension ...
      CIO 1618
    2. For correspondence, refer the inquiry to the CIO via Form 4442, Inquiry Referral, and fax it to CIO at ≡ ≡ ≡ ≡ ≡ ≡ .

  4. When receiving refund inquiries and a bankruptcy freeze is on an account:

    If ... Then ...
    TC 846 is present Provide the caller with the expected refund date

    Reminder:

    Do not contact the CIO concerning a refund when TC 846 is present.

    TC 810 with "RESP-U-CD>3" (Earned Income Tax Credit freeze) is present, Advise the taxpayer a review for the EITC amount is in process
    Both TC 846 and TC 840 with "RESP-U-CD>3" is present (partial refund is generating while an EITC freeze is on the account) Explain to the taxpayer the refund they will initially receive is the amount not subject to EITC review
  5. When the taxpayer needs immediate resolution to a NFTL or levy and their account is in ST 72 or they claim they are currently in bankruptcy, provide the CIO toll free number: 800-973-0424.

    Note:

    For proper case routing of cases in ST 72, 22, 71, and 26, follow the TC 520 cc chart with definitions in Document 6209, IRS Processing Codes and Information. For example, cases in 72 may show TC 520 cc indicating CDP/Appeals, Bankruptcy, Litigation, Tax Court, Civil Penalty with Appeal Rights.”

  6. DO NOT prepare a Form 4442, Inquiry Referral, if the tool:

    • Allows you to establish an IA; or

    • Instructs you to refer the taxpayer to the CIO toll free number.

Insolvency Debt - Discharged, Written Off or Forgiven
  1. When the taxpayer states the debt was discharged written off or forgiven, follow the procedures in the chart below:

    If ... Then ...
    All Notice Statuses
    1. Advise the taxpayer the Service will suspend collection until the issue is resolved.

    2. Use AMS to complete Form 4442, Inquiry Referral, and fax it to CIO at ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    3. Input CC STAUP 2209.

    4. Document AMS comments with actions taken.

    5. ACS employees: When the account updates to ST 22 enter ACS history code "TOR4, 45,BDISCR" indicating Bankruptcy discharged.

    The account is in ACS (ST 22)
    1. Follow 1) - 2) in the first "Then" procedures above.

    2. Reassign "TOR4, 45,BDISCR" .

    3. Advise Manager of pertinent information if the account remains in ST 22 after the 45 day suspense period expires while case is in R4. The manager will contact the sites P&A Analyst who will contact CIO.

Bankruptcy Filed
  1. If the taxpayer states they already filed bankruptcy, but the account is not ST 72, request and use AMS Form 4442, Inquiry Referral, to document the following information from the caller:

    Note:

    AM and CSCO transfer or route all ST 22 cases to the appropriate ACS site.

    • Current status of the taxpayer’s bankruptcy (either opened or closed)

    • Date the petition was filed

    • Court location where the bankruptcy was filed

    • Case (docket) number

    • Chapter under which the bankruptcy was filed

    • Discharge date if applicable

    • TIN(s)

    • Method of closure (dismissal or discharge) and the closure date (or general time frame) if the case is closed.

  2. Form 4442 - Additional information and routing procedures:

    1. Include on the form when a levy (including FPLP) or a NFTL was recently requested. If a levy or NFTL was recently requested, follow the procedures for Potential Stay Violations on the Insolvency (Bankruptcy) National Field/Centralized Site Directory.

    2. Fax it to Philadelphia CIO at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Delay Collection - Follow the appropriate procedure below:

    1. For Notice Status modules, input a CC STAUP to the next status for nine cycles.

    2. For ACS accounts, reassign to "TOR4,45" and release all levies.

Will File Bankruptcy
  1. When the taxpayer states they will file bankruptcy, follow the appropriate procedures outlined in this subsection. Advise the taxpayer, as soon as the bankruptcy is filed, to immediately mail a copy of the bankruptcy to:

    Mailing Address PDS Mailing Address
    Centralized Insolvency Operation
    PO Box 7346
    Philadelphia, PA 19101-7346
    Centralized Insolvency Operation
    2970 Market St., Mail Stop 5-Q30-133
    Philadelphia, PA 19104-5016
  2. If the balance due meets or exceeds established criteria, make a NFTL determination and advise the taxpayer of NFTL filing when appropriate; for criteria; for NFTL filing procedures, see IRM 5.19.4.5.3.1(2), Before Filing NFTLs, and IRM 5.19.4.6.1, How to File a NFTL. If the taxpayer objects to the NFTL filing, see IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures, for CAP information.

    Exception:

    AM employees who have not been trained on filing NFTLs should transfer the call to ACS for the NFTL determination.

    Reminder:

    Annotate AMS with the NFTL determination.

  3. When working correspondence, advise the taxpayer of NFTL filing by sending Letter 2603C, Notice of Federal Tax Lien Will be Filed with Installment Agreement, to the taxpayer. When necessary, request a NFTL be filed immediately. For additional information, see IRM 5.19.4.5, Notice of Federal Tax Lien Determinations and Filing Criteria, and IRM 5.19.4.6, Procedures for Filing Liens.

  4. When working correspondence, you are required to resolve any issue under your authority and dispose of the document(s) in classified waste. Forward questions not under your authority to the appropriate operation. Use Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to notify the taxpayer. Follow Action 61 procedures in IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office.

  5. Delay Collection - Follow appropriate procedures below:

    1. For Notice Status accounts, input CC STAUP 09 to the next status

    2. For ST 64, input CC STAUP 2209

    3. For ST 22 accounts, reassign to "TOXX,60" , where XX =:
      "E2" if a levy source is available and LT11, Final Notice -- Notice of intent to levy and your notice of a right to a hearing (sent certified, return receipt requested), was not issued
      "E3" if a levy source is available and LT11, Final Notice -- Notice of intent to levy and your notice of a right to a hearing (sent certified, return receipt requested), was issued
      "I2" if there is no levy source.

      Note:

      If the account is in S8, contact the ACS CDP Coordinator and do not remove from S8.

    4. When the follow up period expires and the account is still ST 22, proceed with normal processing.

Insolvency Request for ACS
  1. Insolvency may request ACS take one of the following actions listed in the chart below:

    If Insolvency requests ... Then ...
    An account transferred to a RO Enter History Code "TOI7,TFRO" , and document AMS with AOTOXXXX (where "XXXX" = the RO collection assignment number). See IRM 5.19.5.8.4, I7 - Transfers Actions.
    An account transferred to them Enter History Code "TOI7,TFRO" , and document AMS with XXXXXXXX (where "XXXXXXXX" = the assignment code provided by Insolvency). See IRM 5.19.5.8.4, I7 - Transfers Actions.
    Collection be pursued
    1. Contact the taxpayer and explain the tax is due and collectible.

    2. If unable to reach the taxpayer by phone, notate comments and pursue collection.

Insolvency - Short Term Payment Plan/IA Requests on Post-Petition Periods
  1. A Post-petition period(s) is a tax period that ends after the date of filing of the bankruptcy petition. The exception is employment taxes which are divisible by payroll date. The Bankruptcy Reform Act of 1994 (BRA94) granted permission to assess pre-petition tax periods while the debtor is under the protection of the automatic stay. Therefore, a pre-petition tax can be assessed after the petition date.

  2. Effective 03-23-2015, a request for an IA (or Short Term Payment Plan) on post-petition liabilities is non-processable when a taxpayer is in bankruptcy (unless the IA request meets Guaranteed IA criteria. See IRM 5.19.1.6.4(8), IAs). Employees should contact CIO to determine the current status of the bankruptcy and what collection actions, if any, are appropriate to each specific case with post-petition liabilities and follow CIO guidance. Procedures for allowing IAs vary among bankruptcy court jurisdictions. Insolvency must approve Short Term Payment Plan and an IA on post-petition periods. To determine if an account qualifies, see IRM 5.19.1.5.2.1(1), Contacts Regarding Insolvency Issues. Employees should not establish IAs on post-petition liabilities when there are open modules in bankruptcy, unless directed to by CIO.

    Note:

    In this situation, before referring an account to CIO, ensure the taxpayer is in bankruptcy.

    Example:

    If there is a TC 520 CC 76 or cc 77 on the ST 72 modules, the account is in CDP; these cases are referred to the ACS CDP Coordinator.

    Reminder:

    Always follow CIO's direction on whether or not a Short Term Payment Plan or an IA can be granted on the post-petition periods; local law and practices in each state may vary.

  3. Upon receipt of Form 9465, Installment Agreement Request, or any IA (or Short Term Payment Plan) request on post-petition liabilities while the taxpayer is in bankruptcy, CIO will:

    1. Issue Letter 2272C, Installment Agreement Cannot Be Considered, to the taxpayer.

    2. If there is documentation about receipt of the request, on AMS, document the AMS history stating that the IA request is non-processable due to bankruptcy and that Letter 2272C, Installment Agreement Cannot Be Considered, was sent to the taxpayer.

    3. Input a TC 520 cc 84 on the post-petition modules on IDRS using the bankruptcy petition date as the TC 520 date.

    4. Add all TC 520 cc 84s added to modules on IDRS to the Automated Insolvency System (AIS) Freeze Screen. This will allow systemic reversal of the TC 520 during case closure.

    5. If the aggregate Unpaid Balance of Assessment (UBA) on all post-petition periods is $10,000 or more, CIO will determine if the liability was addressed when a New Assessment Litigation Transcript System (LTS) transcript generated. If the post-petition liability was addressed by Field Insolvency (FI) when a LTS transcript generated, CIO will go to Step g below. If the post-petition liability was not addressed previously, CIO will reassign the case to FI. CIO and FI will follow guidance in IRM 5.9.16.2.2 (2), "New Assessment" Reports.

    6. If the post-petition module is in ST 22, CIO will check the ACS system. If a levy was issued on the debtor’s wages, CIO will release the levy and move the case to R4, which is a protected inventory. If no levy was issued, then CIO will move the case to R4.

    7. Notate all actions in the AIS case history.

    Note:

    Post-petition IA requests submitted by taxpayers who had a pre-petition IA are also considered non-processable. The taxpayer may not be granted a post-petition IA, nor is the taxpayer eligible to have the pre-petition IA reinstated. In addition to issuing Letter 2272C, Installment Agreement Cannot Be Considered, CIO will follow the steps in Exhibit 5.9.17-5, Installment Agreement Cannot Be Reinstated.

  4. When contacting CIO for approval, tell the taxpayer you will contact them within 30 days. Open a control base on IDRS and follow up with the appropriate interim letter or phone call if resolution is not completed within the 30 days. Update AMS comments actions taken.

  5. After attempting contact with the Insolvency Unit by fax, if you do not receive a response within 21 days, contact them to follow up on the initial request. If you do not receive a response within 14 days after the follow up, refer the case to your manager for contact with the Insolvency Unit manager. Follow up with the taxpayer by sending the appropriate interim letter or by phone call.

  6. If an IA is granted, and the TC 520 cc is 60, 62, 64 or 66, it can be included in the IA and input on IDRS using CC IAGRE. For all other codes, refer to related procedures. IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.

  7. If a Short Term Payment Plan is granted, refer to applicable procedures. IRM 5.19.1.6, Methods of Payment.

  8. When receiving an IA request by correspondence, and modules are in ST 72, and the Bankruptcy Chapter is not available route to:

    Mailing Address PDS Mailing Address
    Centralized Insolvency Operation
    PO Box 7346
    Philadelphia, PA 19101-7346
    Centralized Insolvency Operation
    2970 Market St., Mail Stop 5-Q30-133
    Philadelphia, PA 19104-5016
  9. Notify the taxpayer of the referral by sending Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office.

  10. Previously, Chapter 13 taxpayers in certain jurisdictions may have been granted an IA for post-petition liabilities. This practice will not be continued, as there is potential for a stay violation. For those cases where a post-petition IA has already been granted and the taxpayer had a pre-petition IA for liabilities not discharged by the bankruptcy, CIO will send Letter 2975C, Notice of Intent to Levy - Intent to Terminate Your Installment Agreement, to the taxpayer at case closure.

Deceased Taxpayers

  1. General processing guidelines:

    1. Except as otherwise noted throughout the following procedures, all procedures apply to contacts by phone, correspondence, or in person. For ACS employees working R4 Inventory, use guidelines in IRM 5.19.5.7.4.2, Decedent, to process decedent cases.

      Reminder:

      If a Decedent account includes any modules in ST 22, and you have no access to the ACS system, transfer the correspondence to the appropriate ACSS site or the call to the appropriate ACS toll free number using the Telephone Transfer Guide.

    2. Decedent procedures apply to IMF, BMF sole proprietorship, and BMF partnership accounts.

    3. All information gathered and actions taken (including NFTL determinations) on Decedent accounts are to be documented in AMS. Asset information may be documented in the AMS narrative or AMS Financial screen. If AMS is not available, document on CC ENMOD or CC TXMOD as appropriate.

    4. If at any time original documents are received, make copies and return the originals to the provider.

      Reminder:

      Faxes are copies and do not need to be handled as originals.

    5. See IRM 11.3.2.4.11, Deceased Individuals, for disclosure information on Decedent accounts. Secure Form 56, Notice Concerning Fiduciary Relationship, when necessary to prove the creation or termination of a fiduciary relationship. Secure authorized representative forms (Form 2848, Power of Attorney and Declaration of Representative/Form 8821, Tax Information Authorization) when necessary to verify an authorized representative.

      Note:

      A third party authorization (Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization, or oral taxpayer information authorization) expires with the death of the taxpayer. An executor or administrator is appointed to act in place of the decedent and may provide a new authorization.

    6. A NFTL determination is required on all Decedent accounts. If personal or real property is identified during internal/external research as described below, a NFTL is to be filed. Neither a fiduciary’s name nor the fiduciary’s address is to appear on the NFTL. If a fiduciary’s address has been added to the account, include in the case narrative the address of real property owned by the decedent prior to death or their last known address if they owned no property. For ST 22 accounts, document that the NFTL should not be filed using the address on the account and enter "FM10" twice when requesting the NFTL. For non ST 22 accounts, enter the appropriate address on Form 12636, Request for Filing or Refiling Notice of Federal Tax NFTL, when requesting the NFTL. If a fiduciary’s name has been added to the account, document that the fiduciary’s name must be removed from the NFTL. For ST 22 accounts, enter "FM10" twice when requesting the NFTL. For non ST 22 accounts, do not enter the fiduciary’s name on Form 12636, Request for Filing or Refiling Notice of Federal Tax NFTL, when requesting the NFTL. See IRM 5.19.4.5, Notice of Federal Tax Lien Determinations and Filing Criteria, for NFTL procedures.

    7. When it becomes necessary to suspend a case while waiting for additional information that is not available during the phone contact or in correspondence:

      If ... Then ...
      ST 22 account Based on the address and BOD of the account, provide the appropriate ACSS mailing address. Enter history code "TOR4, XX,DECD" (XX = promised mailing time frame plus 15 days)
      Notice status account Based on the address and BOD of the account, provide the appropriate CSCO mailing address and enter CC STAUP 22XX (XX = promised mailing time plus 6 cycles).
    8. If procedures require the input of ACS history code TOR4 and the case is already in R4, use of history code OADT is acceptable.

    9. When sending referrals per the following procedures, include all supporting documents secured (e.g. copies of death certificate, wills, letters testamentary, Credit Bureau reports, etc.). Additionally, document research work undertaken, the NFTL determination, and attempts to contact the fiduciary on the referral.

      Note:

      Only TDA or TDA/TDI combo cases are to be referred to Advisory. Do not refer TDI only decedent accounts to Advisory.

    10. If communication is with a liable surviving party and the following decedent procedures require transfer to a Revenue Officer or referral to an Advisory Unit, document the liable party’s payment ability and transfer/refer the case. IRM 5.19.1.5.3.1, Deceased Taxpayer- Balance Due Actions, when communicating with a liable surviving party.

    11. Normal out call procedures and requirements apply when making out calls on Decedent accounts.

  2. Attempt to secure the following information on all contacts regarding the death of a taxpayer and document the results:

    1. Date of death (unless a TC 540 is already present).

      Note:

      If a date of death is not present on CC INOLE, attempt to secure a copy of the death certificate.

    2. County in which the taxpayer died.

    3. County in which the taxpayer resided at the time of death.

    4. Name, address, telephone number, and address of the fiduciary (executor or administrator), if any.

    5. Name and telephone number of person who is calling if different than paragraph d) above in the event additional information is needed from them.

    6. If on a phone call and the caller is able to fax the documents during the call, ask them to fax the letters testamentary and probate/estate inventory. These documents, when available, are to be attached to all referrals to Advisory.

  3. Ask if assets were separately or jointly owned by the Decedent (e.g. real estate, accounts, stocks, bonds, pension plans, IRAs, other). Use the following table to probe for location and type of assets available:

    Type Of Asset Probing Questions
    Real estate
    • Where is it located (address including city and state)?

    • Value, equity, and mortgage holder?

    • Property owned jointly or individually? If jointly, name(s) and contact information of other owner(s)?

    Bank Accounts
    • Type of accounts(s) (e.g. savings, checking, money market, CD)?

    • Financial institution at which account(s) are held?

    • Value of account(s)?

    • Account(s) owned jointly or individually? If jointly, name(s) and contact information of other owner(s)?

    Stocks/Bonds
    • Stock(s) or bond(s)?

    • Name of and location of brokerage firm(s)/ broker(s)?

    • Value of stock(s)/bond(s)?

    Pensions/IRAs
    • Source(s) of pension(s)?

    • Name of and location of IRA holder(s)?

    • Value of account(s)?

    Other
    • Type of other asset(s)?

    • Value, equity, and lien holder?

    • Asset(s) owned jointly or individually? If jointly, name(s) and contact information of other owner(s)?

    • Location of the asset(s)?

  4. Ask if there is an open probate.

    1. Use the following table when there is an open probate (a judicially controlled process):

      If ... Then ...
      There is no TC 520 with cc 80 or 81 present
      • Request the court location and the docket number of the proceedings.

      • Prepare Form 4442, Inquiry Referral, with attachments/documents and fax or mail to appropriate Advisory Unit for a Proof of Claim determination.

      • If account is in Notice Status input a CC STAUP to the next status for 9 cycles. If the account is in ST 22, assign the case "TOR4, 45,DECD" .

      There is an un-reversed TC 520 with cc 80 or 81 present Prepare Form 4442, Inquiry Referral, with attachments/documents and fax or mail to appropriate Advisory Unit.
    2. There may be instances in which the caller or correspondence states there are assets available but based on state law no probate is required. When that is the case, prepare Form 4442, Inquiry Referral, with attachments/documents and fax or mail to the appropriate Advisory Unit.

    3. If there are no remaining assets or the probate has closed, probe for information concerning any assets held by the decedent at the time of death that were dispersed even if there was not a requirement by the state to file probate.

      If ... Then ...
      Assets were dispersed Refer the case to the appropriate Advisory Unit via Form 4442, Inquiry Referral, with all attachments/documents. Continue to paragraph (6)
      There were no assets dispersed Continue to paragraph (6).
  5. If the information in paragraphs (2) - (3) is not available, take the following actions in the order listed to secure it. Stop at the point the needed information is attained.

    1. Research internal sources including CC IRPTR and CC RTVUE in the year prior to, year of, and years following death to identify potential assets. Additionally, secure a Custom Comprehensive People Search report (Accurint) from the current Locator Service vendor, if available. This report provides the date and county of death, as well as asset and locator information.

    2. If working correspondence or R4 inventory and a phone number is available, call the fiduciary or surviving liable party (i.e. surviving spouse or Partner in a BMF Partnership).

    3. When receiving the information from a third party by phone and the account is ST 22, assign the case "TOR4,00,DECD" for contact attempt with the fiduciary or surviving liable party. When receiving the information from a third party by phone and the account is in Notice Status, prepare Form 4442, Inquiry Referral. Based on the address and BOD of the account route to the appropriate CSCO site for contact attempt with the fiduciary or surviving liable party. If unable to reach the fiduciary or liable surviving party after two contact attempts, continue to paragraph d).

    4. If not previously sent, issue IDRS Letter 2268C, Request for Information/Delinquent Return for a Deceased Taxpayer, to request the information. Overlay the name line of the letter to include "Estate Of" . If the account is in Notice Status, input a CC STAUP to the next status for 9 cycles. If the account is in ST 22, assign the case "TOR4, 30,DECD" .

  6. When contact is with the fiduciary, conduct a full compliance check per IRM 5.19.1.4.4.1, Full Compliance Check, make note of all cross-referenced accounts (i.e. IMF, BMF sole proprietor, or LLC partnership), a partnership can be a member of an LLC. For additional information on LLC accounts, refer to IRM 5.19.1.5.14LLC Accounts. Request any tax returns that are due, and establish a deadline for filing any delinquent returns identified. See IRM 5.19.2.6.4.6.6, IMF Response Taxpayer Deceased, for IMF Return Delinquency and IRM 5.19.22.5.3.1.2.1, BMF Response Taxpayer Deceased, for BMF Return Delinquency procedures.

  7. Use the following tables if all actions from paragraph (5) have been taken and decedent information has not been secured.

    1. If ... And ... Then ...
      ST 22 account (with or without date of death on CC INOLE) Usable levy source(s) present See IRM 5.19.4.3, Levy Information, for levy procedures and requirements and issue levies or take pre-levy action as necessary.
      Notice status account with date of death on CC INOLE Usable levy source(s) present Input CC STAUP 2201
      ST 22 or Notice Status account with date of death on CC INOLE No usable levy source(s) present IRM 5.19.1.5.3.1, Deceased Taxpayer- Balance Due Actions
      Notice status account with no date of death on CC INOLE Intentionally left blank Input CC STAUP 2201

      Note:

      Usable levy sources are sources for either the decedent or a surviving liable party that can be levied by ACS. See IRM 5.19.4.3.7(1), Choosing a Levy Source, for levy sources that are not levied by ACS.

Deceased Taxpayer - Balance Due Actions
  1. Follow existing procedures to update an account to ST 26 for any decedent account in which the deceased owned real property secured by a NFTL at the time of death. These accounts are to be assigned to a Revenue Officer. The Revenue Officer will determine the need for any required collection.

    1. ST 22 accounts: Enter "TOI7,TFRO" and document AMS with definer 6501 or 6566. See IRM 5.19.5.8.4 , I7 - Transfers Actions.

    2. Notice status accounts: Input CC STAUP 2200, TSIGN 6401 or 6466.

  2. If a CI freeze is present and per the following procedures TC 540 must be entered, input TC 540 then prepare Form 4442, Inquiry Referral, to refer the case to CI and:

    1. ST 22 accounts: Enter history code "TOR4,45" .

    2. Notice status accounts: Input CC STAUP 2203.

  3. If there is no liable surviving party:

    1. Input entity changes. IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes

    2. Continue with paragraph (6), below.

  4. Use the following table if there is a liable surviving party:

    If ... Then ...
    IMF and only the secondary taxpayer is deceased
    • Input entity changes. IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes

    • Pursue collection from the primary taxpayer.

    • Continue to paragraph 5.

    IMF and only the primary taxpayer is deceased
    • Input entity changes. IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes

    • Pursue collection from the secondary taxpayer.

    • Continue to paragraph 5.

    BMF Partnership and there are one or more surviving partners
    • Pursue collection from the surviving Partner(s).

    • Continue to paragraph 5.

  5. When the contact is by phone, conduct a tiered interview to determine the appropriate resolution for the liable party or estate. See IRM 5.19.1, Balance Due, for applicable balance due collection procedures.

  6. When the primary taxpayer is deceased, regardless of the balance owed, if neither the surviving liable party nor the estate show payment ability, input of TC 530 cc 08 will generate a TC 540 systemically on the account. If the account is in ST 22, send the case:

    If ... Then ...
    If the AAB (CC SUMRY) due is less than ≡ ≡ ≡ ≡ ≡ ,
    1. Input TC 530 cc 08 using CC REQ77/CC FRM77 on each module with a balance due.

    2. Input:

      • ACS: "TOC0, 21,CNC" .

      • ACSS: "TOS0, 21,CNC"

    3. Document AMS.

    If the AAB (CC SUMRY) due is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,
    1. Request managerial approval:

      • ACS: "TOC0, 05,NC08"

      • ACSS: "TOS0, 05,NC08"

    2. Document AMS.

    3. The manager should confirm that required actions in IRM 5.19.1.5.3, Deceased Taxpayers, have been taken and documented in AMS, prior to approval of TC 530. Once confirmed, the manager should approve the closure by inputting "NC08,53APP" on ACS.

    4. The manager should document their approval in AMS as well.

    See 5.19.17.2.1.2, Decedent and Decedent Estates, and IRM 5.19.1.6.7.1, Front End Mirror Assessments Process for IA and CNC Closures.

    Note:

    If the decedent account includes Individual SRPs with other MFT 30 or MFT 31 modules, close all modules as CNC (cc 08).

    Note:

    Decedent procedures apply to IMF, BMF sole proprietorship and BMF partnership accounts (only if all liable partners are deceased).

  7. If the primary taxpayer is deceased and a TC 530 cc 08 is not input, the mail file requirement must be deleted. In these cases, input TC 540 for the year in which the taxpayer died.

    Example:

    The primary taxpayer died in 2011. A surviving spouse, partner, or estate has the ability to pay. An IA is established. TC 540 must be input on 30 201112.

  8. If the liable surviving spouse's TIN is invalid on the joint account, input TC 130 on the liable surviving spouse's TIN.

Deceased Taxpayers - Entity Changes
  1. Make appropriate entity changes to IDRS CC ENMOD using IDRS CC ENREQ prior to closing the case. Update all cross reference TINs as appropriate.

    If ... Then ...
    The taxpayer is individual (FS1, FS3, FS4, or BMF sole proprietor)
    • Add "DECD" to the name line (e.g. JOHN W SMITH DECD)

    • If a fiduciary is present, add "C/O" to the fiduciary’s name in the second name line.

      Example:

      JOHN W SMITH DECD
      C/O JANE W DOE

    IMF joint taxpayer or BMF Partnership Enter "DECD" after the decedent’s name. If the decedent is the primary taxpayer, add the secondary taxpayer’s name as C/O on the second name line.

    Example:

    JOHN W DECD AND JILL P SMITH
    C/O JILL P SMITH

    Exception:

    If a fiduciary is present, enter the fiduciary name as C/O on the second name line.

    Example:

    JOHN W DECD AND JILL P SMITH
    C/O JANE W DOE

  2. Input an "in-care-of" name line on the continuation of the primary name line and/or make an address change if a representative requests to be recorded as the contact point on the decedent’s account and has provided one of the following:

    1. Completed Form 56, Notice Concerning Fiduciary Relationship.

    2. Court papers naming the person as a court-appointed or court certified personal representative for the estate of the deceased taxpayer.

    3. A will, validated through the court.

  3. The items in paragraph (2) should be solicited by Fax if the caller has them available and can fax the information while on the call. If unable to secure by fax:

    1. ST 22 accounts: Based on the address and BOD of the account, provide the appropriate ACSS mailing address. Enter history code "TOR4, XX,DECD" (XX = promised mailing time frame plus 15 days).

    2. Notice status accounts: Based on the address and BOD of the account, provide the appropriate CSCO mailing address and enter CC STAUP 22XX (XX = promised mailing time plus 6 cycles).

TFRP Issues

  1. The TFRP is assessed against any person required to collect, account for and pay over taxes held in trust by a business (i.e., withheld employment taxes or collected excise taxes) who willfully failed to perform any of these activities, or willfully attempted to evade or defeat any such tax or its payment. A person may be an officer, employee, or third party, and more than one person can be liable for the same liability. The responsible person is personally liable for the penalty which equals the amounts withheld and not turned over to the government. The assets of the responsible person may be used to satisfy the TFRP liability. See IRM 5.19.14, Trust Fund Recovery Penalty (TFRP), for specific guidelines and procedures for all accounts with TFRP issues.

  2. The TFRP program has been consolidated to the Ogden and Brookhaven Campus CSCO Operations. They are responsible for cross-referencing payments (TC 699, 697 and 538) and Form 3870, Request for Adjustment, on cases where a (TC 240 RN 618) is present.

  3. Balance due issues regarding TFRP assessments, whether Can't Pay, Won't Pay, Will Pay or Bankruptcy should be worked per normal procedures provided elsewhere in this IRM.

  4. Refer disputes regarding the assessment amount, claim forms, appeals and payment tracer issues to the consolidated TFRP sites as follows:

    1. Cases where the Corporate Entity State is CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, VA, VT, and WV are worked in the Brookhaven Campus.

    2. All others are worked in the Ogden Campus. In addition, Ogden works cases where the Corporate Entity country is Guam, Puerto Rico and the Virgin Islands.

TFRP Bankruptcy Situations
  1. When a taxpayer advises bankruptcy was filed: IRM 5.19.1.5.2.1.2, Bankruptcy Filed.

  2. ACS access only: Assign the case to R4 for follow up with the Advisory Unit and input the bankruptcy information in comments.

  3. Contact the Advisory Unit, outlining the facts and ascertain whether or not collection action should be suspended (TC 520).

  4. The Advisory Unit provides specific instructions about processing the case and may forward a Form 3870, Request for Adjustment, to the area responsible for the TFRP if the assessment needs to be abated.

  5. ACS access only: Document these instructions in comments.

  6. Contact the Advisory Unit when the taxpayer advises their corporation is in bankruptcy and trust fund taxes are being paid, or were paid in part or in full through the bankruptcy court.

  7. The Advisory Unit advises the area responsible for the TFRP when the taxes were paid through bankruptcy via Form 3870, Request for Adjustment.

Credit Offset (TC 130)

  1. Determine if a TC 130 should be input; for guidelines see IRM 5.19.10.3, Credit Offsets.

    Note:

    Research entity to determine whether a TC 130 was previously input and is still in effect.

BMF TC 130 Procedures
  1. When closing a BMF account as a hardship, input the appropriate TC 130. Two separate TC 130 inputs may be required.

    1. Input TC 130 on the BMF entity to offset BMF refunds to the IMF balance owed (if one was not previously input). This TC 130 must be input on all BMF accounts involving sole proprietors, general partners or sole members of an LLC (where the owner is identified as the liable taxpayer). For further information, see: IRM 5.1.12.21.2, Determine if TC 130 Input is Necessary, IRM 5.1.12.21.3, Request Refund Offset with TC 130, IRM 5.1.12.21.3.2, Offset an IMF Refund, and/or IRM 5.1.12.21.3.3, Offset a BMF Refund.

      Note:

      If the single member owner is the liable taxpayer for LLC tax periods on or after January 1, 2009, it is treated as a corporation per Treasury Regulation § 3301.7701-2. Therefore, a trust fund recovery penalty investigation must be conducted and assessed if applicable. A TC 130 is not required as it is systemically uploaded to the IMF SSN when the TFRP is being assessed. Any refunds will offset from the IMF 1040 to the IMF MFT 55.

    2. Input TC 130 on the IMF entity for all BMF accounts closed as hardship. The TC 130 on the IMF account will cause the BMF accounts to come out of CNC if the taxpayer files a personal return that shows the ability to pay the BMF obligation.

  2. When a TC 130 is required, use the following chart for the input information:

    CC REQ77/CC FRM77 - Field Input TC 130 on BMF Entity for Credit Offset TC 130 on IMF Entity to Reactivate BMF CNC
    TC 130 130
    TRANS-DT Date of TC 130 input Date of TC 130 input
    Closing Code Intentionally Left Blank cc used for the input of the TC 530
    DLN 000 000
    XREF-TIN SSN EIN
    NM-CTRL IMF NC (Optional) BMF NC

Federal Employee/Retiree Delinquency Initiative (FERDI)

  1. Refer to IRM 5.19.18, Federal Employee/Retiree Delinquency Initiative (FERDI), for instructions to process FERDI balance due cases.

Incarcerated Taxpayers

  1. Refer to IRM 5.19.17.2.1.1, Incarcerated Taxpayers, for instructions to process cases for incarcerated taxpayers...

Disaster/Emergency Relief

  1. Take the following actions if the taxpayer indicates they are affected by a disaster or an emergency:

    Example:

    Earthquake, flood, hurricane, fire, etc.

    1. Determine if the Service granted only relief because of the disaster; a list of IRS assistance determinations by year is available at the IRS Disaster Assistance Program web site

    2. Enter the pertinent information on IDRS as a history item using CC TXMOD

      Example:

      Earthquake, flood, etc.

    3. Discontinue all collection activity

    4. Follow any local procedures in place for the specific disaster or emergency

    5. Dispose of documents per local procedures and return any original documents to the taxpayer using Form 3699, Return of Documents to Taxpayer.

    6. Prepare Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), if the taxpayer meets TAS criteria and you cannot resolve the case within the "same day" . See IRM 5.19.1.3(9), Referrals or Redirect, for definition of "same day" . See IRM 13.1.7.2, TAS Case Criteria for an explanation of what cases meet TAS criteria. See also IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

    Note:

    See IRM 25.16, Disaster Assistance and Emergency Relief, for further explanations of actions required.

Military Deferment

  1. Taxpayers may receive special tax relief and benefits under certain circumstances due to military service. If the taxpayer is a member of the Armed Forces (not in a combat zone), they may qualify to defer (delay) payment of income tax due before or during their military service; to qualify, they must:

    • Be performing military service

    • Notify the IRS their ability to pay the income tax is materially affected by their military service

  2. The service member is then allowed up to 180 days, after termination or release from military service, to pay the tax. If they pay the tax in full by the end of the deferral period, they are not charged interest or penalty for that period.

    Note:

    This does not apply to the service member’s share of social security and Medicare taxes they may owe; for additional information see Publication 3, Armed Forces’ Tax Guide.

  3. The collection of any income tax due from any person in the military service may be deferred (delayed) under the provisions of the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. 3902. The service member must meet the following criteria to qualify for military deferment:

    1. The taxpayer must be materially affected because of their military status;

    2. The taxpayer must make a WRITTEN request to the IRS office either making demand for payment or to the office with which the taxpayer has a payment agreement in effect; and

    3. The taxpayer must include, in the request, the following information:

    • Name

    • SSN

    • Monthly income and source of income before military service

    • Current monthly income

    • Military rank

    • Date entered into military service

    • Date they are eligible for discharge

      Note:

      Inform the taxpayer, if they submit a copy of their orders, it is also helpful.

  4. Inform the taxpayer all returns must be filed to qualify for Military Deferment.

  5. Definitions of the terms used in processing Military Deferment cases are:

    Term Definition
    Military Deferment "A delay in the collection of income tax due in addition to penalty and interest accruals during, and up to, 180 days after termination or release from military service."
    Military Service "The period beginning on the date on which the taxpayer enters military service and ending on the date on which they are released from military service, or die while in military service. In the case of a member of the National Guard, this includes service under a call to active service authorized by the President or the Secretary of Defense for a period or more than 30 consecutive days under Title 32, U. S. C. § 502 (f) for purposes of responding to a national emergency declared by the President and supported by federal funds."
    Materially Affected "If the taxpayer’s current monthly income (military income) is less than the monthly income immediately prior to active duty, their ability to pay the balance due has been materially affected by reason of active military status."
    Accrual of Interest or Penalty "No interest or penalty shall accrue for the period of deferment by reason of nonpayment on any amount of tax deferred. See § 4000 of the Servicemember’s Civil Relief Act (SCRA)."
    Statute of Limitations "The running of a statute of limitations against the collection of tax deferred under § 4000 of the SCRA, by seizure or otherwise, shall be suspended for the period of military service of the servicemember and for an additional 270 days thereafter."

    Example:

    Although normal balance due procedures resume after the military deferment period, plus 180 days, no enforcement actions can be taken on the account until 90 days after the 180 days.

    Maximum rate of interest "Section 3937 of the Servicemembers Civil Relief Act limits the maximum interest rate the taxpayer can be charged to 6% per year for obligations or liabilities incurred before their entry into military service. The reduced rate applies only if the service materially affects the taxpayer’s ability to pay. This rate applies only to that interest charged during the period of the taxpayer’s military service."

    Note:

    The service member is charged the lesser of the current rate not to exceed the maximum of 6% stated by law. To substantiate the claim for reduced interest rate, the service member (taxpayer) must furnish the IRS with a copy of their orders or reporting instructions detailing the call to military service. They must do so no later than 180 days after the date of their termination or release from military service.

Military Deferment Balance Due Procedures
  1. Review taxpayer correspondence for the following information:

    • A copy of orders or reporting instructions

    • Prior and current income (current military income is less than earned income immediately prior to their military status); check CC RTVUE for AGI

    • Check CC IMFOLI to ensure all due returns are filed

  2. Take the following actions if the taxpayer meets the requirements for military deferment as outlined above:

    1. Generate Acceptance Letter 289C, Approval of Military Deferment; this letter explains the terms of the deferment.

    2. Input TC 500 cc 51 using CC REQ77/CC FRM77 on each module with a balance due; input of TC 500 cc 51 requires the CSED Indicator present, identifying which taxpayer is entitled to the military deferment.

      Note:

      The values for this field are:
      "P" = Primary taxpayer;
      "S" = Secondary taxpayer;

    3. Forward the incoming correspondence, a copy of Letter 289C, Approval of Military Deferment, and a CC TXMOD print reflecting the updated status "44" via Form 3210, Document Transmittal, to the Field Office Resource Team (FORT) at the following address:

      IRS-FORT
      M/S 5-E04.116
      2970 Market St.
      Philadelphia, PA 19104-5002

  3. The FORT will monitor all Military Deferment accounts until the deferment period expires (military deferment begin date to release/discharge date plus 180 days).

Insufficient Information to Meet Military Deferment Requirements
  1. If the initial request for military deferment does not include sufficient information to grant a military deferment:

    1. Send Letter 1175C, Collection Postponed During Period of Active Military Service, including a return envelope, to the taxpayer or authorized Power-of-Attorney

    2. Suspend the case for 60 days using CC STAUP to the next normal status for 09 cycles

    3. Input history item "MILDEFER" using CC TXMOD for affected tax periods

  2. If the response contains sufficient information to grant the deferment, follow related instructions. IRM 5.19.1.5.9.1(2), Military Deferment Balance Due Procedures

  3. Resume normal collection activity if no response is received within 60 days.

Denial of Military Deferment
  1. Prepare Denial Letter 3079C, Denial of Military Deferment, for signature of Chief, Collection Operations.

  2. Resume normal collection activity.

Military Deferment and IAs
  1. Follow the instructions for determining if the taxpayer meets the criteria for military deferment for cases in ST 60, 61, 63 and 64 per IRM 5.19.1.5.9, Military Deferment.

  2. Treat the IA account as a request for military deferment when the taxpayer asks for a reduced payment amount due to material impairment resulting from active military service; use the chart below in such circumstances:

    If the taxpayer ... Then ...
    Meets the criteria for military deferment Process the account to defer the balance due. IRM 5.19.1.5.9.1, Military Deferment Balance Due Procedures
    Meets the criteria for military deferment and wishes to continue making IA payments
    1. Advise the taxpayer voluntary payments can still be made; however, the account is being deferred until their military status is terminated

    2. Inform the taxpayer, if the tax liability is paid in full by the end of the deferral period, they are not charged interest or penalty for that period

    3. Process the account to defer the balance due. IRM 5.19.1.5.9.1, Military Deferment Balance Due Procedures

    Does NOT MEET the criteria for military deferment
    1. Leave the account in ST 60, 61, 63 or 64

    2. Follow procedures for denial of military deferment. IRM 5.19.1.5.9.3, Denial of Military Deferment

    Does not provide sufficient information to determine their qualifications for military deferment
    1. Leave the account in ST 60, 61, 63, or 64

    2. Follow procedures to obtain the missing information. IRM 5.19.1.5.9.3, Denial of Military Deferment

Military Deferment Transcripts
  1. The FORT works Military Deferment Transcripts; for additional information see IRM 5.1.7.12.1, Military Deferment Procedures.

Tax Court Cases

  1. A balance due account may be issued although the taxpayer timely filed a Tax Court petition. These are generally erroneous assessments; however, some assessments are correct and collection should be pursued. Most others are premature and should be abated. Do not take collection action without verification from Appeals.

    Caution:

    Appeals is responsible for abating the premature assessment, if appropriate.

    Note:

    For any necessary manual NFTL release:
    See IRM 5.12.3.3.1(5), Liability is Satisfied - IRC § 6325(a)(1)
    Employees of functions with access to the ALS input NFTL release requests in these situations. For functions not having access to ALS, determine the (CLO) NFTL release contact on the Intranet by going to:
    IRWeb Home Page
    SERP,
    Who/Where
    ALS Units
    Contacts
    An internal use only telephone number is also provided with the contact information on the CLO web site. Ensure all email communications regarding NFTLs are via secure email.

  2. If the taxpayer states the deficiency is still before the Tax Court for consideration, secure the following information:

    • Name of the taxpayer’s representative

    • Docket number

    • Tax year(s) involved

    • TIN

    Note:

    If the taxpayer states they do not have any of the information requested in paragraph (2) above, advise the taxpayer to call back when it is acquired. See http://www.ustaxcourt.gov/docket.

    Note:

    The Tax Court is located in Washington, D.C.

  3. Rev. Proc. 2012-18 limits communication with Appeals and applies to both written and verbal communications. Be sure the content of the Form 4442, Inquiry Referral, and/or discussions with Appeals are limited to ministerial, administrative or procedural matters and do not address the strengths or weaknesses of the case or the taxpayer’s positions. See also IRM 5.1.9.5, Communications with Appeals, for additional information applicable to all campus and field Collection activities.

  4. If the case is in Notice Status, complete Form 4442, Inquiry Referral, and mail to the appropriate Appeals Office via Form 3210, Document Transmittal.

  5. If the case is in ST 22 (ACS), enter the information secured in paragraph (2) into comments and reassign the case to R4.

  6. The employee working R4 inventory calls the responsible Appeals office and determines if the assessment was made prematurely.

  7. The employee working R4 inventory processes the account based on the Appeals reply.

    Caution:

    Collection is prohibited on any proposed deficiency before the Tax Court.

Killed in Terrorist Action (KITA), Killed in Action (KIA), and Astronauts Killed in the Line of Duty

  1. The AM Technical Unit at the Kansas City Campus is responsible for taking necessary action on KITA, KIA and Astronauts Killed in the Line of Duty cases. Processing and Accounting Operations inform the Technical Unit manager or appointed person of all cases in collection status.

    Note:

    For Notice TDA or TDI, see IRM 21.6.6.3.23.2.1, KITA/KIA Procedures for All Functions.

  2. The literal "KITA" will appear on CC ENMOD, CC IMFOLE, CC TXMOD and CC SUMRY as an indicator. It does not cause a freeze or prevent the issuance of enforcement-related notices.

  3. Take special care in working these sensitive cases. The Technical Unit manager or appointed person is responsible for all taxpayer contact, such as survivors, for these cases.

  4. Discontinue all collection activity.

  5. ACS access only:, take the following actions:

    1. Enter any pertinent information on ACS in the comments field

    2. Enter History Code "TOa0,01" , "KITA" , "KIA" , or "AKLD" , where "a" = the appropriate manager's inventory

  6. Route all correspondence to the AM Technical Unit manager or appointed person at the Kansas City Campus, using Form 3210, Document Transmittal.

Taxpayers Taken Hostage in Terrorist Action (HSTG)

  1. The U S State Department periodically provides IRS with a list of persons who have been identified as Hostages taken in a terrorist act. The State Department also advises that IRS suspend collection activity when a hostage situation exists.

  2. State Department lists of Hostages are sent or routed to Atlanta CSCO, who will analyze and research to determine if there are any open Bal Due or Del Ret cases on the names provided.

  3. If a taxpayer is identified as a Hostage from the list, CSCO will CC MFREQ/CC ENMOD the account and input CC INCHG in the Killed in Terrorist Action (KITA) Indicator field with an indicator of "2" .

  4. If a subsequent list from the State Department no longer includes the taxpayer, CSCO will input an indicator of "9" after the KITA> on CC INCHG.

  5. When a module has been coded to indicate a taxpayer is a Hostage the literal "HSTG" displays on CC ENMOD, CC SUMRY, CC TXMOD or CC TDINQ. This causes an entity freeze preventing issuance of enforcement-related notices, TDA, and TDI. Such a case will leave open inventory when the freeze has been input.

  6. If you have an open case assignment where the literal "HSTG" appears:

    1. Take no further action on the case

    2. Route any correspondence received to Atlanta CSCO

  7. If you receive indication on an open case that a taxpayer is currently held as a Hostage but there is no HSTG literal, advise Atlanta CSCO that you have received this correspondence

Criminal Investigation Division Indicators (CID) on Balance Due Cases

  1. Some balance due cases may have CID indicators; for procedures see IRM 5.19.1.3.6(3), For Other Account Issues Requiring Referrals or Redirect.

LLC Accounts

  1. A LLC is an entity created under state law that has characteristics of both a partnership and a corporation. It is similar to:

    • A corporation in that the owners have limited personal liability for negligent acts and LLC debts.

    • A partnership in that it provides management flexibility and may provide the benefit of pass-through taxation of income.

  2. The following are some of the characteristics of an LLC:

    • Owners are called members.

    • There are no restrictions on ownership.

    • There are no restrictions on the number of members.

    • Single member LLCs are permitted.

  3. A member/owner is a person with an ownership interest in the LLC. The term "person" includes legal entities. Thus, a member/owner may be:

    • An individual

    • A corporation

    • A partnership

    • An association

    • An estate

    • A trust

    • Another LLC

    Example:

    An LLC with one owner is a single member entity, or single member owner (SMO).

    Example:

    An LLC with more than one owner is a multi-member entity.

  4. Treatment of the LLC entity for federal taxes is governed by the provisions of Treasury Regulation 301.7701-2 and 3. Liability for income, employment, and excise taxation is determined by the manner in which the entity is classified under the applicable regulations. To properly address various collection questions, you must first understand how an LLC is classified. Also see Notice 99-6 and IRM 5.1.21.11.1, Examples of Classification Changes by Ownership or Election.

    Note:

    Final regulations changing the treatment of certain LLCs for employment and excise tax liabilities were issued on August 16, 2007. The changes are not retroactive; they do not change the tax treatment of employment and excise taxes that accrue prior to their effective dates. The applicability of these regulations must be considered when determining liability for employment and excise taxes incurred both before and after the effective dates of these regulations. See IRM 5.1.21.7.3, Income Taxation for Disregarded Entity Classification.

    1. For wages paid prior to January 1, 2009, a single member LLC, classified as a disregarded entity, was permitted to satisfy its employment tax obligations with respect to employees performing services for the entity in one of two ways: (1) calculation, filing and payment of all employment taxes under the owner’s name and EIN, or (2) separate calculation, filing and payment of all employment taxes under the LLC’s name and EIN (Notice 99-6, 1999-3 I.R.B).

    2. For wages paid on or after January 1, 2009, a single member LLC, classified as a disregarded entity, no longer has the two options set forth in Notice 99-6 satisfying employment tax obligations. A single member LLC, classified as a disregarded entity, will no longer be treated as a disregarded entity, for employment tax purposes, and is liable for employment taxes on wages paid to employees of the LLC.

      Note:

      As a result of Regulations changes, the LLC itself will be the liable taxpayer for employment tax periods beginning on or after January 1, 2009, regardless of the LLC’s classification for federal income tax purposes.

  5. Useful information regarding the ownership and classification of an LLC may be obtained by accessing various IDRS CCs.

    Example:

    IDRS CC ENMOD may include a name line indicating membership.

    Example:

    IDRS CC BMFOLE may reveal the name of owner(s), filing requirements, and will confirm any elections made, including effective date and classification elected.

  6. On IDRS, CC BMFOLE may contain the following transaction codes with regard to whether or not the LLC has made an election:

    • A TC 076 indicates the date the Form 8832, Entity Classification Election, was accepted by the campus, the effective date of the election, and the classification elected. The alphabetic indicators "a " through" f " showing after PARA-CD, corresponds to the box checked on the Form 8832, Entity Classification Election. The alphabetic indicator "z " will appear if the Form 2553, Election by a Small Business Corporation (Under section 1362 of the Internal Revenue Code), is filed per IRM 5.1.21.4.1(4), Classifications Available for Entities Filing an Election.

    • A TC 090 indicates the acceptance of Form 2553, Election by a Small Business Corporation (Under section 1362 of the Internal Revenue Code), and includes the effective date of the election and the fiscal year month for the entity. If only the Form 2553, Election by a Small Business Corporation (Under section 1362 of the Internal Revenue Code), is filed per IRM 5.1.21.3.1(4), Classifications Available for Entities Filing an Election, both the TC 076 and TC 090 will appear on the entity.

  7. Pre-January 2009 tax modules may display TC 971 Action Codes, 364, 365, and 366, which are input on the tax modules when the identity of the liable taxpayer has been determined liable taxpayer.

    TC AC Explanation
    971 364 LLC is the liable taxpayer for this tax period
    971 365 Single member/owner is the liable taxpayer for this tax period
    971 366 Liable taxpayer changed during this tax period
  8. Because the classification may change without any indication in the record of assessment, the LLC presents challenges to collection employees. The IRM 5.1.21, Collecting from Limited Liability Companies, discusses a number of investigative techniques to allow employees to make a collection determination. See IRM 5.16.1, Currently Not Collectable, for further information.

Criminal Restitution Assessments

  1. Background - Following the conviction of a defendant for a criminal tax violation or tax-related offense, the court may order the defendant to pay restitution to the Internal Revenue Service. The requirement that the defendant pay restitution will be contained in a document signed by the judge called a Judgment and Commitment Order (J&C).

    In 2010, Congress amended IRC 6201 to provide that the IRS shall assess and collect tax-related restitution in the same manner as if such amount were tax. This change in IRC 6201 applies to restitution in all J&Cs entered after August 16, 2010.

  2. Identification of Assessments - Restitution assessments will be made on MFT 31 and can be identified by TC 971 AC 102. When restitution is ordered, an individual will be assessed with one of the following:

    • TC 290 with RC 141 to 150.

    • TC 300 with RC 141 to 150.

    • TC 298 with RC 141 to 150.


    Restitution assessments on BMF will be on MFT 02, 06, 05, etc. It is expected that restitution assessments on a BMF will be rare. When a restitution assessment is made against an officer of a corporation, the assessment will be made on the MFT 31 of the defendant/officer. A TC 470 cc 93 will be input to the restitution module at the time of assessment, placing the module in a ST 53 hold for six months.

  3. Campus Case Actions - Restitution cases will not be worked by Campus employees, except as follows:
    If there is a module in ST 26 and an RO assignment is present and there are other modules in Notice Status, input CC STAUP to accelerate the modules according to current procedures.
    If the MFT 31 module does not contain a TC 470 cc 93, is in another status, or the transaction will expire in the near future, contact your local Advisory Probation Liaison (APL) for further guidance. A current listing of APLs may be found at:
    http://mysbse.web.irs.gov/AboutSBSE/Collection/fieldcoll/aiq/aiqorg/contacts/19176.aspx

    • The APL may advise the contacting employee to input a TC 470 cc 93 on all modules, placing the account in a ST 53 hold or advise the contacting campus employee to CC ASGNI the account to a designated RO group.

    • Otherwise, the APL receiving contact from Campus Collection employees about restitution modules or related assessments, may issue an Other Investigation (OI) to the appropriate Field Area group with instruction to assign all modules for the taxpayer if the case is not already assigned to the Field Area.

Affordable Care Act

  1. Under the Affordable Care Act (ACA), the Federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States.

Individual Shared Responsibility Payments
  1. Starting in 2014, the individual shared responsibility provision calls for each individual to have minimum essential health coverage (known as minimum essential coverage (MEC)) for each month, qualify for a coverage exemption, or make a shared responsibility payment (SRP) when filing their Federal income tax return.

  2. The amount of any payment owed takes into account the number of months in a given year an individual is without minimum essential coverage or a coverage exemption from the responsibility to maintain MEC.

  3. The IMF for the individual SRP is MFT 35. The Tax Class is 2 and the File Source is 1.

    Note:

    Individual SRP modules may be mirrored. Mirrored Individual SRP modules will be processed as MFT 65.

  4. The individual SRP amount owed is not subject to:

    • Penalties,

      Exception:

      The taxpayer may be subject to a dishonored check penalty, if applicable.

    • Levies on the taxpayer’s property, or

    • The filing of an NFTL.

    However, interest will continue to accrue until the total SRP is paid. The Service may offset federal tax refunds to the SRP amount until it is paid in full.

  5. When a taxpayer files a return that includes an Individual SRP, the tax return (MFT 30) will post first and the SRP module (MFT 35) will post the following cycle.

Standalone SRP
  1. A standalone SRP occurs when a balance due is created on a module with MFT 35/65 File Source 1 (SRP 5000A) and there is no other:

    • Balance due module with a different MFT in ST 22, ST 24, or ST 26, or

    • TDI module in ST 03.

    If an additional SRP balance due occurs in a subsequent year, but there are no other modules with a different MFT, it is (they are) still considered a standalone SRP.

  2. Standalone SRP modules will be subject to a recess. This means that routine collection activities will temporarily halt. See IRM 5.19.17.2.1.12, Recessed Individual Shared Responsibility Payment (SRP) Modules.

Employer Shared Responsibility Provision
  1. Large employers (generally, employers with at least 50 full-time employees, including full-time equivalents employees, in the prior calendar year) may be assessed an employer shared responsibility payment (ESRP) under IRC 4980H(a) if they do not offer health insurance with minimum essential coverage (MEC) to full-time employees (and their dependents) and at least one full-time employee receives a premium tax credit (PTC) under IRC 36B.

  2. The ESRP may also be assessed under IRC 4980H(b) if the employer offers MEC to it's full-time employees (and their dependents), but a least one full-time employee receives a PTC because the employer's insurance MEC was not affordable or did not provide minimum value.

  3. Unlike the individual SRP assessments, the ESRP assessments are subject to enforcement actions. See IRM 5.19.4.2.2, Affordable Care Act (ACA) - Employer Shared Responsibility Provision (ESRP) §4980H.

  4. The ESRP assessments are processed on the Business Master File (BMF) under MFT 43.

Erroneous Refunds

  1. If an individual receives money from the Service to which the recipient is not entitled then this is referred to as an erroneous refund. This definition includes all erroneous refunds regardless of taxpayer’s intent or whether the error that caused the erroneous refund was made by the IRS, the taxpayer or a third party, see IRM 21.4.5, Erroneous Refunds.

  2. While researching an account where "wrongful levy payments" have been received, it is important to be able to identify an erroneous refund. Indicators of possible erroneous refund: receipt of wrongful levy payment(s), the payments applied to the owner’s Identification Number (TIN), and a refund has been issued as a result of the wrongful payments. It is important to document AMS and input TC 570 to freeze funds/prevent refunds.

  3. There are several erroneous refund categories, the wrongful levy payments/erroneous refunds will be under the "Category D" . Administrative collection actions such as the issuance of a NFTL or a levy cannot be taken to recover Category D Erroneous Refunds.

    Note:

    The Erroneous Refund Unit in Accounting, Submission Processing, will input a false credit, a TC 700, on the "Category D" Erroneous Refunds. This action is taken to remove the erroneous refund amount from MF and the account is reestablished in Accounting. This is done to prevent notices and administrative collection action (NFTLs or levies) from occurring on the erroneous refund liability.

    The TC 700 credit can be identified by a Document Code 58 and a blocking series 950-999 in the Document Locator Number (DLN). These accounts will have a -U Freeze (generated by a TC 844) and it informs other employees the account is being worked and monitored in Accounting. Do not release the TC 700 credit.

  4. Indicators of an Erroneous Refund "Category D" :

    • TC 570

    • TC 470, cc 93 (stops systemic notices and the collection process)

    • TC 844 (generates a -U freeze)

    • Open control ("ERRORREF" ), "M" status

    • Letter 510C, Refund In Error; Return Check (CC ENMOD)

    • TC 700, Document Code 58, Blocking Series 950-999, see IRM 21.4.5.4.5, Overview of Category D Erroneous Refunds

Unassessable (Formerly Non-Rebate) Erroneous Refund
  1. If the taxpayer requests a repayment agreement on an unassessable (non-rebate) erroneous refund account, U Freeze with a TC 700 BL 950-999; only Accounting Operations grant these repayment agreements. Do not provide the telephone number for Accounting Operations. Take all pertinent information and forward Form 4442, Inquiry Referral, to the Accounting Operations employee having a control on the account. If the request for repayment includes other balance due modules, take the following actions:

    If ... Then ...
    Balance due modules are in Notice Status on IDRS
    1. Input TC 971 AC 043 if the request meets qualifications: IRM 5.19.1.6.4.7(2), Pending IA Criteria.

    2. Input a CC STAUP 2215 if active on IDRS, allowing Accounting Operations to resolve the erroneous refund module

    3. Send the taxpayer Letter 2272C, Installment Agreement Cannot be Considered/Extension of time to pay Cannot be Considered, (or other appropriate letter), explaining we are unable to complete processing of their request for an IA, or to reinstate a current IA, until the refund issue is resolved; encourage the taxpayer to begin making payments on the balance due

    Balance due modules are in ST 22, ACS
    1. Input a TC 971 AC 043 if the request meets qualifications: IRM 5.19.1.6.4.7(2), Pending IA Criteria.

    2. Assign the account to R5 with a 60 day follow up and enter comments regarding the unassessable erroneous refund

    3. Send the taxpayer Letter 2272C, Installment Agreement Cannot be Considered/Extension of time to pay Cannot be Considered, (or other appropriate letter), explaining we are unable to complete processing their request for an IA until the refund issue is resolved; encourage the taxpayer to begin making payments on the balance due

Innocent Spouse

  1. Do not refer a taxpayer to the Innocent Spouse Operation when they request an IA and there is an unreversed TC 971 AC 065. Follow procedures below to process these requests. If the TC 971 AC 065 is reversed, follow normal procedures to establish on the MFT 31 module.

  2. If the non-requesting spouse requests an IA, establish the IA on the MFT 31 module for the non-requesting spouse.

  3. If the requesting spouse requests an IA and there is an unreversed TC 971 AC 065 on any balance due module, take the following actions.

    1. Follow normal procedures to determine if the taxpayer qualifies for an IA, but exclude any module with an unreversed TC 971 AC 065; establish the IA as an MMIA: IRM 5.19.1.6.6, Manually Monitored Installment Agreements, MMIA

      Exception:

      If the TC 971 AC 065 is not reversed, but the taxpayer states they were granted partial relief and has the "Allocation Worksheet" stating the amount they still owe, include the tax period and amount in the MMIA. Sometimes this is the only module the taxpayer owes, but other balance due modules could be included.

      Reminder:

      DO NOT refer these taxpayers to the Innocent Spouse Operation.

    2. When determining if the IA will be full paid within the CSED, include all modules including those with TC 971 AC 065. Since we are unsure if the claim will be approved, we must determine if the account will be full paid within the CSED if the TC 971 AC 065 is reversed, disallowing the claim. If the account will not full pay within the CSED, follow PPIA procedures: IRM 5.19.1.6.5, PPIA.

      Note:

      All requests for innocent spouse relief, filed after December 20, 2006, toll the CSED; use caution in determining the CSED; for many years, the CSED may still be tolled at the time you consider the request for an IA. See IRM 25.15.8.9, Collection Action — While an Appeal is Pending.

      Reminder:

      AM employees should refer to IRM 5.19.1.3.3, For AM Employees.

    3. If the taxpayer qualifies for an IA, establish the IA using MMIA procedures: IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.

    4. Once the Innocent Spouse determination is made, and the TC 971 AC 065 is reversed, this MMIA can be input on IDRS.

    5. If the Innocent Spouse claim is later denied, and the taxpayer requests to add this new liability to the IA, follow normal procedures for adding a new liability: IRM 5.19.1.6.4.20, Adding New Liability to an Existing IA.

Passport Certification in Case of Certain Tax Debts

  1. The Fixing America's Surface Transportation (FAST) Act, signed into law December 4, 2015, includes a provision requiring the IRS to certify to the State Department that an individual owes a seriously delinquent tax debt. This section provides Passport Certification procedures for cases identified January 2017 or later.

Passport Certification Overview
  1. IRC 7345 requires the IRS to certify individuals as owing a seriously delinquent tax debt. Upon certification, the State Department shall be notified that an individual is certified as owing a seriously delinquent tax debt.

  2. When this notice of certification is received from the IRS, the State Department is generally required to deny the certified individual a U.S. passport (or renewal of a U.S. passport) or may revoke any U.S. passport previously issued to that individual. The State Department is responsible with respect to denying an individual's application for a U.S. passport or renewal on the basis of a seriously delinquent tax debt. The State Department has the sole authority to revoke or limit a passport held by a certified individual. Whether a passport will be revoked or limited is left solely to the discretion of the State Department.

Passport Certification Terms
  1. The following terms and definitions are used frequently in the Passport Certification Program:

    • Certification – This refers to the process by which a taxpayer's account is systemically identified by the IRS as having a seriously delinquent tax debt and notification is systemically sent to the taxpayer and the State Department. When this notification is received from the IRS, the State Department is responsible for action with respect to denying that individual's application for a U.S. passport or renewal on the basis of a seriously delinquent tax debt.

    • Decertification – This refers to the process by which the passport certification on a taxpayer's account is systemically reversed. Notice of the reversal of certification is systemically sent to the taxpayer and the State Department.

    • Denial of Application for Passport or Renewal – Pursuant to IRC 7345, the IRS is authorized to notify the State Department when an individual is certified as owing a seriously delinquent tax debt. The State Department generally will not issue or renew a U.S. passport to a certified individual after receiving notice of the certification from the IRS.

    • Discretionary Exclusion – For the purpose of passport certification, categories of tax debt listed in IRM 5.19.1.5.19.4, Discretionary Certification Exclusion, are excluded from certification even if the debt meets the criteria of seriously delinquent tax debt. The term "discretionary exclusion" does not mean IRS employees have discretion in applying these exclusions. The agency made a policy decision that discretionary exclusions apply to all taxpayers who meet the exclusion criteria.

    • Reversal of Certification – See Decertification, above.

    • Seriously Delinquent Tax Debt – For the purpose of passport certification, a seriously delinquent tax debt is the unpaid, legally enforceable federal tax liability, which has been assessed and meets the other conditions listed in IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt.

    • Statutory Exclusion – For the purpose of passport certification, categories of tax debt listed in IRC 7345 are excluded from certification even if the debt meets the criteria of seriously delinquent tax debt. See IRM 5.19.1.5.19.3, Statutory Certification Exclusions.

Seriously Delinquent Tax Debt
  1. For the purpose of passport certification, seriously delinquent tax debt is the unpaid, legally enforceable federal tax liability of an individual totaling more than $50,000 which has been assessed, and either:

    1. A NFTL has been filed and all administrative remedies under IRC 6320 have lapsed or been exhausted, or

      Note:

      When a CDP Lien hearing is timely requested, or pending, in connection with the filing of a NFTL, the above criteria is not met until the CDP hearing is resolved, which includes expiration of all judicial appeal periods.

      Note:

      A pending or requested Equivalent Hearing (EH) in connection with the filing of a NFTL, as described in IRM 5.19.8.4.3, Equivalent Hearing (EH) Requests and timeliness of EH Requests, will not preclude a liability from being considered a seriously delinquent tax debt.

    2. A levy has been issued.

  2. The $50,000 threshold, which is indexed yearly for inflation, is the aggregate unpaid balance of assessment. The unpaid balance of assessment includes tax and assessed interest and penalties. It does not include accrued interest and penalty.

    Note:

    As of January 1, 2018, the threshold amount indexed for inflation is $51,000.

    Caution:

    Once the taxpayer is certified, paying the account below the threshold amount indexed for inflation effective at the time of certification will not result in decertification. Certification will not be reversed unless all certified modules have been fully satisfied (e.g., ST 12), become legally unenforceable or meet the criteria for reversal in accordance with IRM 5.19.1.5.19.9, Reversal of Certification.

  3. Unless otherwise listed (statutory or discretionary exclusions) a seriously delinquent tax debt includes, but is not limited to, tax assessments made under an individual taxpayer’s identification number (SSN or EIN) such as U.S. individual income taxes, trust fund recovery penalties, business taxes for which the individual is liable and other civil penalties. This does not include other non-tax liabilities such as:

    • ACA assessments, Individual SRP modules (MFT 35 or 65),

    • Employer Shared Responsibility Payments (ESRP) modules (MFT 43),

    • Criminal Restitution assessments (MFT 31 with unreversed TC 971 AC 102),

    • Child Support Obligations (NMF MFT 59). See IRM 3.8.45.6.35, Sub-Pays for Child Support MFT 59, or

    • Report of Foreign Bank and Financial Accounts (FBAR) assessments.

      Note:

      FBAR penalties are asserted under Title 31 as a non-tax debt and do not appear on IDRS. They are tracked on a separate database at Detroit where payments are posted and notices generated.

Statutory Certification Exclusions
  1. IRC 7345(b)(2) excludes the following tax debt from the determination of seriously delinquent tax debt, even if it meets the criteria in IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt:

    1. Debt that is being paid in a timely manner as part of an IA (unreversed TC 971 AC 063),

      Exception:

      Although some Short Term Payment Plans (TC 971 AC 899) and Continuous Wage Levies (TC 971 AC 898) are monitored in ST 60 on IDRS, they are not IAs and do not meet the criteria for this exclusion.

    2. Debt that is being paid in a timely manner as part of an Offer In Compromise (OIC) accepted by the IRS (unreversed TC 780),

    3. Debt that is being paid in a timely manner as part of a settlement agreement entered into with the Department of Justice,

    4. Debt in connection with a levy for which collection is suspended for a timely requested or pending CDP Hearing under IRC 6330 (unreversed TC 520 cc 76/77),

      Exception:

      An Equivalent Hearing (EH) (unreversed TC 520 cc 278) in connection with a levy to collect the debt does not meet the criteria for this exclusion, as described in IRM 5.19.8.4.3, Equivalent Hearing (EH) Requests and timeliness of EH Requests.

    5. Debt on which collection has been suspended due to a claim for Innocent Spouse relief under IRC 6015 (unreversed TC 971 AC 065).

  2. Certification is postponed under IRC 7508(a)(3) for taxpayers serving in a Combat Zone (–C Freeze caused by unreversed TC 500 cc 52, 54 or 56). See IRM 5.19.10.6.4, Combat Zone Computation of Suspense Period. For taxpayers serving in a Combat Zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State Department.

Discretionary Certification Exclusions
  1. IRC 7345 provides the IRS the discretion to exclude categories of tax debt from certification, even if the debt meets the criteria in IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt. The following categories of tax debt will be excluded from the determination of seriously delinquent tax debt of the IRS:

    1. Debt that is determined to be currently not collectible (CNC) due to hardship (unreversed TC 530 cc 24-32),

      Note:

      When cases are identified reflecting a CNC hardship for one spouse, request a manual/expedited decertification only for the individual taxpayer experiencing the hardship.

    2. Debt that resulted from identity theft (unreversed TC 971 AC 501, 505, 506, 522, 523, and 525),

    3. Taxpayers in a Disaster Zone (–O or –S Freeze), or

    4. Debt of a taxpayer in bankruptcy (unreversed TC 520 cc 60-67, 81-89 (excluding cc 82). See IRM 5.19.1.5.2, Insolvency Issues,

    5. Debt of a deceased taxpayer (TC 540 and/or TC 530 cc 08 present, along with Date of Death (DOD) displayed on CC INOLES), see IRM 5.19.1.5.3, Deceased Taxpayers.

      Note:

      Only the individual identified as deceased is excluded from certification.

    6. Debt that is included in a pending OIC (unreversed TC 480), and

    7. Debt that is included in a pending IA (unreversed TC 971 AC 043).

      Exception:

      This exclusion does not apply if the proposal does not meet Pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria.

      Exception:

      This exclusion does not apply if the proposal was made to delay collection. See IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

    8. Pending claim; resulting adjustment is expected to result in no balance due. (Unreversed TC 470 cc 90).

  2. These discretionary exclusion categories are subject to change in the future.

Identification of Levy on Certified Cases
  1. As described in IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt, a legally enforceable federal tax debt assessed against an individual for more than the threshold amount indexed for inflation effective at the time of certification for which a levy has been issued pursuant to IRC 6331 may be certified as seriously delinquent. TC 971 AC 640, has been created to identify tax periods for which levy action has occurred.

  2. This transaction code will be systemically uploaded, beginning January 2017, the first time a module has been included on levy actions occurring after this date.

    Exception:

    The input of TC 971 AC 640 is delayed for eight (8) weeks if the taxpayer is given post-levy CDP rights the first time the module is included on a levy. This will allow the taxpayer time to appeal.

  3. Once levy action has occurred on a module, employees will generally not need to take any further steps for the levy action to be identified.

  4. The following are examples from IRC 6330(f) and (h) in which the IRS may serve a levy to collect taxes prior to giving the taxpayer pre-levy CDP rights:

    1. Jeopardy levy (see IRM 5.11.3, Jeopardy Levy without a Jeopardy Assessment),

    2. Disqualified employment tax levy (DETL) (see IRM 5.19.4.3.1.1, Disqualified Employment Tax Levy (DETL)), and

    3. Federal contractor (FEDCON) levy (see IRM 5.19.4.3.1.2, Federal Contractor Levy – “FEDCON”).

    4. Levy on a State Income Tax Refund to collect a Federal tax liability. See IRM 5.19.9.2, State Income Tax Levy Program (SITLP) General.

      Note:

      For purposes of passport certification, a state income tax refund levy will not be recognized as a levy until CDP notification is provided.

Identification of Certified Seriously Delinquent Tax Debt
  1. Seriously delinquent tax debt will be identified as certified by an unreversed TC 971 AC 641 (Passport – certified seriously delinquent tax debt) on each module of a taxpayer’s account eligible for certification. The TC 971 AC 641 will be added to CC ENMOD, CC TXMODA and CC IMFOLE, identifying the certified individual by their SSN and the date of their certification notice.

  2. Each individual identified as certified will be systemically sent a certification notice, CP 508C, Passport Denied or Revoked Due to Serious Tax Delinquency, displaying each certified module balance. The notice will be sent to the individual’s last known address. Certified taxpayers should only receive one certification notice. The CP 508C will be shown in the Notice History Section of CC TXMODA.

    Caution:

    Employees should not manually input TC 971 AC 641 or attempt to manually generate CP 508C.

  3. On a joint module, a separate TC 971 AC 641 will be input to certify each spouse.

  4. Once identified as certified, modules fully satisfied (e.g., ST 12), that have become unenforceable, or those meeting exclusion criteria (e.g., approved Installment Agreement), the TC 971 AC 641 will be systemically reversed with a TC 972 AC 641. See IRM 5.19.1.5.19.9, Reversal of Certification.

  5. Each taxpayer’s certification stands on its own. A taxpayer will be decertified when the last certified module is reversed with a TC 972 AC 641. A decertified taxpayer will be sent a reversal of certification Notice CP 508R. On a joint account where both the primary and secondary taxpayers are identified as certified, each individual will have their own TC 972 AC 641 to reverse the certification.

Taxpayer Notification
  1. The IRS is required to notify the taxpayer in writing at the time the certification of seriously delinquent tax debt is made to the State Department. A Notice CP 508C is sent to the taxpayer to notify them that they were certified.

  2. The IRS Commissioner may only delegate the authority to certify a seriously delinquent tax debt to the Commissioner of an Operating Division or to the Deputy Commissioner for Services and Enforcement.

  3. The CP 508C may identify more than one TIN related to a specific taxpayer. Both the liabilities of the IMF and BMF accounts may be used to determine whether the taxpayer meets the certification threshold.

  4. The IRS is also required to notify the taxpayer in writing at the time the certification is reversed. A Notice CP 508R, The IRS has reversed the certification of your tax debt as seriously delinquent, and notified the State Department of that reversal. You do not need to respond to this notice, is sent to the taxpayer to notify them they were decertified. See IRM 5.19.1.5.19.9, Reversal of Certification

  5. The IRS will send these notices systemically by regular mail to the taxpayer’s last known address.

Taxpayer Notification of Subsequent Certified Modules
  1. When an additional module meets the criteria for certification, the system will recalculate the aggregate assessed balance with both the previously certified and new module. If the total liability meets the seriously delinquent debt criteria, IDRS will generate a new Notice CP 508C reflecting all modules including the new module. This new aggregate balance takes into consideration, payments and or audit adjustments increasing the liability of a previously certified module. As a result, the new Notice CP 508C may reflect different balances for previously certified modules.

    Example:

    The taxpayer's account was previously certified for a $65,000 tax debt. When a new module for $2,000 becomes eligible for certification, the new module's balance will be systemically added to the current balance due of all previously certified modules. If the new aggregate assessed balance is $48,000 due to payments or offsets, the new module would not be certified because the aggregate assessed balance is less than the minimum amount for certification in IRM 5.19.1.5.19.2, Seriously Delinquent Tax Debt. However, the taxpayer's account remains certified based on the previously certified modules, and will not be decertified until all certified modules are satisfied.

  2. If a taxpayer claims they have paid their certified debt on a module based on their Notice CP 508C and the certified module has an additional assessment posted subsequent to the issuance of the notice, request assistance through your management chain. This can be done by sending an email asking for assistance through your manager and including the results of your research. If the issue cannot be resolved, forward the message to the Passport Analyst with the subject heading "Review of Subsequent Assessment" at *SBSE Passport Support.

Certification Process
  1. On a weekly basis, the IRS will inform the State Department of newly certified taxpayers.

  2. The State Department will hold the application of a certified taxpayer open for 90 days to allow the taxpayer to resolve any erroneous certification issues, make full payment of the tax debt or enter into a satisfactory payment alternative with the IRS before denying a passport application.

    Note:

    The State Department is responsible for issuance of passports. The IRS does not have authority to issue or deny a passport. Under 22 U.S.C. § 2714a, the State Department may, notwithstanding a certification from the IRS, issue a passport to a taxpayer if the State Department determines emergency circumstances or humanitarian reasons justify issuance of the passport. This does not affect the taxpayer’s certification as a seriously delinquent taxpayer or reverse their certification. If a taxpayer, who is responding to a certification letter from the IRS or a denial letter from the State Department, requests their passport be issued for non-tax-related reasons, refer them to their local passport office or the contact information provided on their State Department correspondence.

Reversal of Certification
  1. The IRS will systemically notify the State Department within 30 days if the previously certified tax debt is:

    1. Fully satisfied (ST 12),

    2. Becomes legally unenforceable,

    3. Ceases to be seriously delinquent tax debt,

      Note:

      A previously certified debt ceases to be seriously delinquent tax debt when a statutory exclusion is met. See IRM 5.19.1.5.19.3, Statutory Certification Exclusions.

      Exception:

      Certification will not be reversed because the taxpayer pays the debt to below the threshold amount indexed for inflation effective at the time of certification. All certified modules must be fully satisfied (e.g., ST 12), become unenforceable, or meet an exclusion for certification to be reversed.

  2. If the certification is found to be erroneous, the IRS will notify the State Department as soon as practicable. The IRS will also notify the taxpayer once the certification is reversed. Examples of erroneous certification are:

    1. A taxpayer is in a Combat Zone, but the service did not receive notification. The account was erroneously certified because no -C Freeze was present.

    2. The taxpayer has an approved IA being paid in a timely manner but the TC 971 AC 063 was not input in IDRS on the taxpayer account.

    3. The taxpayer has an innocent spouse relief claim under IRC 6015, and the account was not properly coded.

  3. The Tax Court or District Court of the United States order the IRS to reverse the certification. See IRM 5.19.1.5.19.11, Appeals Process and Judicial Review of Certification.

    Note:

    When decertification is required as a result of litigation, the employee should work with Counsel to provide notification to the Passport Analyst as described in IRM 5.19.1.5.19.11, Appeals Process and Judicial Review of Certification.

  4. The IRS has the discretion to request a decertification for other reasons. The IRS will decertify a previously certified tax debt that ceases to be seriously delinquent tax debt when a discretionary exclusion is met. See IRM 5.19.1.5.19.4, Discretionary Certification Exclusions. Examples of discretionary reversal include:

    1. A certified taxpayer who later files bankruptcy.

    2. A certified taxpayer entering a Combat Zone.

    3. A certified taxpayer who is later determined to be CNC (TC 530 cc 24-32).

    4. The Department of State requests the IRS to decertify.

    5. An adjustment to the account that reduces the original certification amount below the threshold. The original return has been filed and processed or the adjustment has posted.

      Example:

      IRS assesses taxpayer’s liability of $54,000, of which $9,000 is attributable to a penalty. The taxpayer’s seriously delinquent tax debt is certified. The taxpayer requests penalty abatement on the basis that she had reasonable cause. IRS finds she had reasonable cause and abates the penalty, lowering the taxpayer’s total liability to $45,000.
      Since the liability is reduced below the certification threshold, the taxpayer is eligible for decertification.

      Caution:

      Not all penalty abatements will result in decertification. For example, a penalty abatement of a certified module due to the First Time Abatement program will not result in decertification, even if the adjusted total liability is less than the threshold amount indexed for inflation.

      Example:

      The taxpayer has a liability of $66,000 for tax period 30/201512 due to an SFR assessment. The taxpayer’s seriously delinquent tax debt is certified and a Notice CP 508C is issued. The taxpayer is in the process of renewing their U.S. Passport with the Department of State. The taxpayer files a return for tax period 30/201512 which reduces the tax debt to $30,000.
      Once the taxpayer’s return for 30/201512 is processed and posted on IDRS, the taxpayer will be eligible for decertification.

    6. The taxpayer claims they have paid their certified debt on a module based on their Notice CP 508C and the certified module has an additional assessment posted subsequent to the issuance of the notice, request assistance through your management chain. This can be done by sending an email asking for assistance through your manager and including the results of your research. If the issue cannot be resolved, forward the message to the Passport Analyst with the subject heading "Review of Subsequent Assessment" at *SBSE Passport Support.

  5. Certification will not be reversed where a taxpayer requests a CDP Hearing or Innocent Spouse relief for tax periods which are not the basis of the certification.

    Example:

    The taxpayer is already certified as owing a seriously delinquent tax debt for their 30/201412 return. Then the taxpayer files a new balance due return for 30/201512, and an employee issues an LT11, Final Notice -- Notice of intent to levy and your notice of a right to a hearing (sent certified, return receipt requested), for 30/201512 to provide notice of CDP levy rights. The taxpayer requests a timely CDP levy hearing for 30/201512. The certification of seriously delinquent tax debt is not reversed for the 30/201412 module. This is because the pending CDP levy hearing is for 30/201512, which is not certified.

  6. Certified modules that are later fully satisfied (e.g., ST 12), become unenforceable, or meet exclusion criteria (e.g., approved IA), will have a TC 972 AC 641 input to reverse the previous TC 971 AC 641.

    • As modules are decertified, a TC 972 AC 641 will be shown on CC IMFOLT (or CC TXMODA).

    • Once the last certified module for which notice of such certification has been sent is reversed with a TC 972 AC 641, the taxpayer is considered decertified. A decertification notice (reversal of certification), CP 508R, is sent to each decertified individual separately. A TC 972 AC 641 will also be shown on CC ENMOD and CC IMFOLE, identifying the decertified individual by their SSN and the date of their decertification notice. The Notice CP 508R will be shown in the Notice History Section of CC TXMODA.

  7. On a joint module, a separate TC 972 AC 641 will be input to decertify each spouse.

  8. On a weekly basis, IRS will systemically inform the State Department of each newly decertified taxpayer.

  9. If the taxpayer explains why they should be decertified and it meets decertification criteria, and the assistor is unable to resolve the issue as to why the modules were not decertified, request assistance through your management chain. This can be done by sending an email asking for assistance through your manager and including the results of your research. If the issue cannot be resolved, forward the message to the Passport Analyst with the subject heading "Review of Certification" at *SBSE Passport Support.

Expedited Decertification
  1. Request expedited decertification when all of the following conditions exist:

    1. A certified taxpayer is eligible for decertification as described in IRM 5.19.1.5.19.9, Reversal of Certification.

    2. The taxpayer states their foreign travel is scheduled within 45 days or less, or the taxpayer lives abroadand

    3. The taxpayer has a pending application for a passport or renewal, and can provide their Passport Application number and Location of passport application (if applied outside the U.S.) (city, country).

    Note:

    Taxpayers residing outside of the United States may have an urgent need for a passport without having imminent travel plans. When a taxpayer residing outside of the United States meets conditions in IRM 5.19.1.5.19.3, Statutory Certification Exclusions, or IRM 5.19.1.5.19.4, Discretionary Certification Exclusions, and self-identifies as having an urgent need for decertification, request expedited decertification.

  2. Given the urgency of the situations, request expedited decertification as soon as possible:

    • Complete Form 14794, Expedited Passport Decertification, secure managerial approval and forward the form to the Passport Analyst with the subject heading "Expedited Decertification" at: *SBSE Passport Group.

      Reminder:

      The taxpayer must provide their Passport application number. This number must be entered when completing Form 14794, Expedited Passport Decertification, or it is not processable.

    • Upon securing the managerial approval for passport decertification, the Passport Analyst will transmit the Form 14794, Expedited Passport Decertification, directly to the State Department for action.

      Caution:

      Do not offer expedited decertification. Explain that the decertification will occur systemically and Department of State notified within 45 days. If the taxpayer indicates a problem with planned travel that meets the criteria in paragraph (1) above, follow expedited decertification procedures.

  3. If the taxpayer does not meet all of the above criteria, they do not qualify for expedited decertification. Advise them that decertification will occur systemically.

    Example:

    If the taxpayer plans foreign travel more than 45 days in the future, they do not qualify for expedited decertification procedures.

Taxpayer Contacts
  1. IRS sends taxpayers a Notice CP 508C to notify them of the certification of a seriously delinquent tax debt. The notice includes an IRS phone number the taxpayers can call to resolve their tax issues (enter an IA or OIC, or full pay) and have the certification reversed.

  2. Passport certification questions may be received in the following ways:

    • Phone - Passport Certification phone calls will be centralized in Philadelphia. Passport Certification phone calls that are received in other sites should be referred to the Philadelphia Call Site at:
      Domestic: 855-519-4965
      International: 267-941-1004

    • In person, or

      Note:

      See IRM 21.3.4.2.4, Taxpayer Assistance Center (TAC) Appointment Service, for Field Assistance appointment procedures.

    • Correspondence - Passport Certification correspondence will be centralized in Philadelphia. Passport Certification correspondence that is received in other Campuses should be referred to Philadelphia ACSS.

  3. Field Assistance and Philadelphia ACS and ACSS employees: If you receive Passport certification inquiries, answer general questions and resolve the case using normal procedures.

    Example:

    If the taxpayer requests an IA, follow IRM 5.19.1.6.4, Installment Agreements (IAs).

    Example:

    If the taxpayer is in bankruptcy, follow IRM 5.19.1.5.2, Insolvency Issues.

  4. Advise taxpayers they can go to www.irs.gov/passports for additional information.

    • For ACS calls, enter: "OADT,PSSPRT"

    • For ACS correspondence, enter: "TOXX,CRPSPRT"

Appeals Process and Judicial Review of Certification
  1. There is no administrative appeal, claim process, or administrative hearing that can be filed with the IRS if the taxpayer believes that a certification is erroneous.

    Caution:

    Although passport certification is not a collection action that is subject to Collection Appeal Program (CAP) rights, taxpayers may be entitled to CAP rights for other collection actions as described in IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures.

  2. After the Commissioner notifies a taxpayer of certification, the taxpayer may bring a civil action against the United States in the Tax Court or a District Court of the United States.

  3. The taxpayer is not required to file an administrative claim or otherwise contact the IRS to resolve the erroneous certification issue before filing suit in the Tax Court or a District Court of the United States.

  4. If the court determines the certification is erroneous or if the IRS failed to decertify the taxpayer when the certification should have been reversed, it can order the certification reversed.

  5. Counsel will provide notification to the Passport Analyst in an email with the subject heading at "*SBSE Passport Group" when decertification is required as a result of litigation. The email should include:

    • Taxpayer’s name

    • Taxpayer’s tax identification number

    • Docket number

Pension Benefit Plans

  1. This section relates to actions required when establishing IAs which include an MFT 74 and/or MFT 76 module.

  2. MFT 74 identifies the tax module in which an adjustment for Form 5500, Annual Return/Report of Employee Benefit Plan, is to post. Form 5500 concerns compliance with qualification provisions. For Form 5500 penalties (e.g., late filing), see IRM 20.1.8.3, Employee Plans (EP).

  3. MFT 76 identifies the tax module in which an adjustment for Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, is to post. Form 5330 is used to report and pay the excise tax related to employee benefit plans under several IRC provisions. The largest assessments usually relate to inadequate funding of employee pension plans. A tax of up to 10% [4971(a)] of the underfunded amount may apply each year. A tax of 100% [4971(b)] can be imposed in certain cases. The tax may be self-reported on Form 5330, or identified by IRS in an Examination proceeding.

  4. Currently, due to programming limitations, the systemic input of certain transaction codes to a MFT 74/76 module is not possible, due to the 3 digit plan identifier associated with these assessments. Automated systems do not recognize the identifier number. Notices requesting payment are sent when the tax is assessed and every time interest is updated, but the cases do not move beyond ST 21. Sometimes no status is reflected on IDRS, just the assessment.

  5. Research of these modules requires a specific format which include:

    Command Code Format Notes
    BMFOLT BMFOLTxx-xxxxxxx 74201212001 Intentionally left blank
    TXMODA TXMODAxx-xxxxxxx
    74 001 201212
    Intentionally left blank
    MFREQ MFREQCxx-xxxxxxx
    76 201210 NAME 001
    (if CC TXMOD is needed for CFOL only period)
    INOLEP INOLEPxx-xxxxxxx Lists the employee benefit plans and their 3 digit identifiers

    Note:

    Balance Due Modules cannot be created on ICS for these assessments.

  6. IAs which include MFT 74 or 76 cannot be systemically established on IDRS; they must be processed following MMIA procedures. See IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.

Private Debt Collection

  1. The Fixing America's Surface Transportation (FAST) Act, signed into law December 4, 2015, requires the IRS to use private collection agencies (PCAs) for the collection of certain past due modules defined as inactive tax receivables. This section provides Private Debt Collection (PDC) procedures for cases worked in April 2017 or later.

Private Debt Collection Overview
  1. IRC 6306(c)(1) requires the IRS to use PCAs for the collection of outstanding inactive tax receivables.

  2. The PDC program consists of those PCAs who have entered into qualified collection contracts to assist the IRS in the collection of certain past due modules that are currently considered inactive tax receivables as defined by IRC 6306.

  3. The IRS will send taxpayers and their representatives written notice (CP 40) that we are transferring their account to a PCA.

  4. The PCA will send a separate letter to the taxpayer and the representative confirming this transfer and providing their contact information.

  5. The IRS will do everything it can to help taxpayers avoid confusion and understand their rights and tax responsibilities, particularly in light of continuing scams where callers impersonate IRS agents and request immediate payment.

    • The IRS will send a letter to the taxpayer to indicate that the module has been assigned to the PCA. The PCA will also send a letter to the taxpayer to confirm that the module has been assigned to them. Both of these letters to the taxpayer will contain the unique 10-digit identifier, instead of the taxpayer’s SSN. This unique identifier will be used to conduct a two-party verification between the taxpayer and the PCA.

    • Taxpayers can confirm the names of the PCAs under contract with the IRS on https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection.

    • PCAs will not ask for payment on prepaid debit, gift or iTunes cards.

    • Taxpayers will be informed about electronic payment options on IRS.gov, Pay Your Tax Bill.

    • Payment by check will be payable to the U.S. Treasury and sent directly to IRS, not the PCA.

  6. For information on scams, visit "Tax Scams and Consumer Alerts" on IRS.gov.

  7. The legislation provides for a percentage of the amount collected by the PCAs to be allocated to a fund for hiring and training special compliance personnel.

  8. Revenue collected by PCAs will be in addition to revenue already coming in through IRS collection operations and will provide needed support to close the nation’s tax gap.

Private Collection Agencies
  1. The IRS has entered into qualified collection contracts with the following four PCAs:

    • CBE Group in Cedar Falls, Iowa

    • ConServe in Fairport, New York

    • Performant in Pleasanton, California

    • Pioneer in Horseheads, New York

  2. Under IRC 6103, PCAs will be able to identify themselves as contractors of the IRS collecting taxes.

  3. Private debt collectors are required to be courteous and respect taxpayers’ rights. They must follow provisions of Internal Revenue Service Private Collection Agency Policy and Procedures Guide and the Fair Debt Collection Practices Act, and are also subject to various provisions of IRC 6306 and IRC 6103.

Private Debt Collection Account Identification
  1. Employees can identify an account assigned to a PCA and related activity on IDRS with the following transaction codes:

    • TC 971 AC 054 – Account assigned to a PCA

    • TC 971 AC 459 – Account returned to IRS by PCA

    • TC 972 AC 054 – Account recalled by IRS

  2. PDC-ID Numbers are two digit codes that identify the taxpayer’s PDC and can be found on CC ENMOD and CC IMFOLE.

    PDC-ID PCA
    01 CBE Group
    02 ConServe
    03 Performant
    04 Pioneer
  3. PDC-IND & PDC-CD are two digit codes to indicate involvement with the PDC program and can be found on CC TXMOD or IMFOLT respectively.

    PDC-IND or PDC-CD Definition
    00 or blank Not involved in PDC.
    01 Module assigned to PDC.
    02-03 Reserved for future use.
    04 Manual block.
    05-15 Reserved for future use.
    16 PCA Payment Agreement
  4. PDC Authentication ID is a unique 10-digit taxpayer authentication number assigned to each taxpayer assigned to a PCA. It will be displayed on CC ENMOD as the PDC-AUTH-ID and CC IMFOLE as the AUTH-ID.

Private Debt Collection Criteria
  1. Per IRC 6306, the Service must enter into qualified tax collection contracts for cases meeting the following criteria:

    • Removed from active IRS inventory because of lack of resources,

    • Removed from active IRS inventory due to inability to locate the taxpayer,

    • When more than a third of the statute of limitations for collection has passed and there has been no assignment to an IRS employee for collection, or

    • When 365 days have passed without taxpayer or third party interaction to further collection of the account.

  2. Per IRC 6306, the Service has the discretion to enter into qualified tax collection contracts for other inactive tax receivables as appropriate.

Legislative Exclusions to Private Debt Collection Criteria
  1. A tax receivable meeting the following exclusion criteria will not be assigned to a PCA:

    • Involves a taxpayer that is deceased,

    • Involves a taxpayer that is under the age of 18,

    • Involves a taxpayer that is in a designated Combat Zone,

    • Involves a taxpayer that is the victim of tax-related identity theft,

    • Currently under examination, litigation, criminal investigation or levy,

    • Subject to pending or active offers in compromise,

    • Subject to a pending or active IA,

    • Subject to a statutory right of appeal,

    • Classified as innocent spouse cases, or

    • Involves a taxpayer in a presidentially declared disaster area who requests relief from collection.

    Note:

    Cases assigned to a PCA that subsequently meet the above criteria will be returned to the IRS.

ACS and FA Taxpayer Contacts on Private Debt Collection Accounts
  1. If the taxpayer contacts the IRS (by phone or in person) instead of the PCA, follow the guidance below:

    • Disclosure: Follow current disclosure/authentication guidelines as outlined in IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party,

    • Documentation: Document the account history and notate account actions on AMS/IDRS, and recap conversation with taxpayer.

    • Verify: PDC ID Number and PDC-AUTH-ID> on IDRS as described in IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification.

  2. If the taxpayer questions the validity of a PDC Agency:

    If ... Then ...
    The company is listed in IRM 5.19.1.5.21.2(2), Private Debt Collection Account Identification, Advise the taxpayer:
    1. The company is contracted by the IRS to assist in the collection of the debt.

    2. The company should never ask to have a payment made out or mailed directly to them.

    3. Provide taxpayer with the payment options available on www.irs.gov/payments. See IRM 5.19.1.2.7, Ways to Submit Payments.

    4. Refer them back to the PCA and provide the https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection.

    The company is not on the list in IRM 5.19.1.5.21.2(2), Private Debt Collection Account Identification, Advise the taxpayer:
    1. The company does not have an agreement with the IRS.

    2. Not to make payments to any company other than the IRS for IRS debt.

    3. Refer the taxpayer to TIGTA Office of Investigations to report the scam:

      • Phone: 800-366-4484

      • Fax: 202-927-7018

      • After normal business hours: 800-589-3718

    Note:

    A list of the PDC agencies is also available on IRS.gov; search "Private Debt Collection" .

  3. If the taxpayer’s account is assigned to an IRS contracted PCA and the taxpayer indicates as follows:

    If ... Then ...
    The taxpayer wants to full pay their liability,
    1. Advise the taxpayer of available payment options per IRM 5.19.1.2.7, Ways to Submit Payments.

    2. Provide the following:

      • Pay off amount per IRM 5.19.1.6.2, Can Full Pay Balance Due Now (Payoff).

      • Applicable information for making payment by check per IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check.

    The taxpayer wants to set up an IA, Advise the taxpayer they must work directly with the PCA and provide the PCA phone number.
    The taxpayer states they do not want to work with the PCA, Advise the taxpayer to submit a written request to their assigned PCA.
    The taxpayer requests account information, Provide the taxpayer with the requested account information (for example: PCA phone number, balance owed, 10-digit Taxpayer Authentication Number (TAN), reason for liability, or how to correct the tax owed) AND advise them they must work directly with the PCA to pay (resolve) their account balance as long as account remains assigned to the PCA.
    The taxpayer meets TAS referral criteria, Follow IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS).
    If the taxpayer states they:
    • Feel they are being threatened,

    • Have reason to believe they are being scammed, or

    • Have a complaint about the PCA or how the PCA is handling their account,

    1. Advise the taxpayer to contact the TIGTA Office of Investigations:

      • Phone: 800-366-4484

      • Fax: 202-927-7018

      • After normal business hours: 800-589-3718

  4. A taxpayer may be liable for modules assigned to an IRS contracted PCA, as well as modules that are not assigned to PDC (including X-refs). When this occurs, follow the guidance below:

    1. Non-PDC modules: Work with the taxpayer to resolve any modules that are not assigned to PDC.

      Reminder:

      If an IA is granted for these modules, it must be processed as a Manually Monitored Installment Agreement (MMIA). See IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.

    2. PDC Modules: Advise the taxpayer they must work directly with the PCA to resolve the PDC modules and provide the PCA phone number.

      Note:

      See IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification, to identify PDC modules.

      Reminder:

      If ACS takes enforcement action(s) on module(s) in ST 22, the PCA will continue to work any X-ref accounts assigned to PDC, unless the IRS recalls the account. There are legislative exclusions that would cause the IRS to recall an account from the PCA. Examples include a proper exercise of appeal under the Internal Revenue Code (IRC sections 6320 or 6330), or an offer-in-compromise. See IRM 5.19.1.5.21.3.1, Legislative Exclusions to Private Debt Collection Criteria, for additional examples of legislative exclusions.

  5. If you encounter situations that are not addressed in the procedures above, you can request assistance through your management chain. This can be done by sending an email asking for assistance through your manager and including the results of your research. If the issue cannot be resolved, forward the message to the PDC Analyst with the subject heading "PDC Questions" at *SBSE PDC Questions.

  6. Frontline IRS employees should not attempt to contact a PCA directly.

ACS and FA Contacts on Private Debt Collection Accounts with Passport Issues
  1. ACS and FA should resolve passport certification through existing systemic processes, as shown below:

    If ... And ... Then ...
    A taxpayer contacts ACS or FA after receiving CP 508C, Taxpayer is able to full pay the account,
    1. Follow instructions in IRM 5.19.1.5.19.10, Taxpayer Contacts.

    2. Advise the taxpayer of available payment options per IRM 5.19.1.2.7, Ways to Submit Payments.

    3. The account will be systemically recalled from the PCA when the account goes to ST 12.

    4. Passport certification will be reversed when the account meets the criteria in IRM 5.19.1.5.19.9, Reversal of Certification.

    A taxpayer contacts ACS or FA after receiving CP 508C, Taxpayer is able to resolve the passport issue,
    1. The case will be systemically recalled from the PCA when the account meets one of the PDC exclusions in IRM 5.19.1.5.21.3.1, Exclusions to Private Debt Collection Criteria.

    2. Passport certification will be reversed when the account meets the criteria in IRM 5.19.1.5.19.9, Reversal of Certification.

ACSS and CSCO Correspondence on Private Debt Collection Accounts
  1. ACSS and CSCO will work correspondence from a PDC assigned taxpayer as normal. The account will be systemically recalled when the account goes to ST 12 or meets one of the PDC exclusions in IRM 5.19.1.5.21.3.1, Exclusions to Private Debt Collection Criteria.

    Note:

    If taxpayer submits written correspondence asking the PCA to cease contact, forward the correspondence by encrypted email to: *SBSE PDC Questions. Document "Correspondence to PDC" on AMS, then classify waste the paper case.

  2. If the PCA previously granted an IA on a PDC account, do not take case actions to interfere with the taxpayer’s IA with their PCA. See IRM 5.19.1.5.21.6, Installment Agreements Granted by Private Collection Agencies.

    Exception:

    A taxpayer may be liable for modules assigned to an IRS contracted PCA, as well as modules that are not assigned to PDC (including X-refs). When this occurs, work the non-PDC modules following guidance in IRM 5.19.1.5.21.4(4), ACS and FA Taxpayer Contacts on Private Debt Collection Accounts.

Installment Agreements Granted by Private Collection Agencies
  1. PCAs may grant IAs on PDC accounts; however, the account will not update to ST 60. Instead, the PCA will monitor it to ensure the taxpayer makes their required payments.

  2. Since the PCA monitors the account for payments, the account will remain assigned to PDC. PDC accounts can be identified per the indicators described in IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification.

  3. Although IAs granted by PCAs do not show up in ST 60, a TC 971 AC 063 will be present for all modules included in a PCA granted IA.

  4. Although the PCA monitors accounts assigned to them for required payments, the payments are received and processed by the Service.

  5. You may receive contact from a taxpayer where they state they are working with the PCA. When this occurs, do not take actions to interfere with the taxpayer’s IA with their PCA.

    Exception:

    If the taxpayer states they do not want to work with the PCA, refer to IRM 5.19.1.5.21.4, ACS and FA Taxpayer Contacts on Private Debt Collection Accounts, or IRM 5.19.1.5.21.5, ACSS and CSCO Correspondence on Private Debt Collection.

Special Compliance Personnel (SCP) Program

  1. The FAST Act requires the IRS to establish a Special Compliance Personnel (SCP) program funded by the retained earnings from the Private Debt Collection (PDC) program. See the Private Debt Collection website, and IRM 5.19.5.4.10.15, Special Compliance Personnel (SCP), for additional information.

  2. SCP employees will only take ACS status (ST 22) telephone calls.

  3. Non-SCP employees will not be able to access SCP accounts. They will receive the following ACS Error Message: "267 NOT SCP PROFILE TRANSFER CALL TO SCP" when they attempt to access an SCP account. They must transfer the call to the SCP line. See IRM 5.19.1.3.5.3.7, Special Compliance Personnel (SCP) Calls.

  4. As of January 2019, SCP profiled employees will be able to access and handle calls for non-SCP accounts in ACS status.

  5. When handling calls for non-SCP accounts in ACS status, SCP should transfer the account to the appropriate N Function Unit as applicable, See IRM 5.19.5.4.10.15.4, N Function Inventory. Transferring the account to the N function/unit will move the account into the SCP inventory and systemically input the TC 971 AC 470.

  6. Non-SCP ACS employees who receive calls on SCP accounts must transfer the call to the SCP line. See IRM 5.19.1.3.5.3.7, Special Compliance Personnel (SCP) Calls.

  7. Non-SCP ACSS employees who receive correspondence on SCP accounts must forward it to PSC Drop Point 4-Q26.132.

Methods of Payment

  1. The taxpayer may indicate through discussion on the phone or by writing they either:

    • Can't pay,

    • Won't pay, or

    • Will pay later

    the balance of tax they owe.

  2. As Collection Representatives, your mission is to bring the taxpayer into compliance on past due accounts. The purpose of the tiered interview process is to determine the most appropriate case resolution, based on the taxpayer’s ability to pay. To accomplish this, it is imperative that you:

    • Listen to the taxpayer.

    • Respond to all of the taxpayer’s questions.

    • Evaluate the situation carefully.

  3. It is to the taxpayer's advantage to pay the balance of tax due as soon as possible to reduce the amount of penalty and interest charged. Explain to the taxpayer the benefits of paying as soon as possible.

    Example:

    Interest and penalty continues to be charged on the unpaid balance of tax until it is paid in full. See IRM 5.19.1.6.4.16, IA Terms and Conditions.

  4. Taxpayer accounts may be resolved in the following ways:

    Payment Method ... See ...
    Immediate full payment, IRM 5.19.1.6.2, Can Full Pay Balance Due Now (Payoff)
    Short Term Payment Plan, IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days
    Voluntary Lump Sum Payment (VLSP), IRM 5.19.1.6.4.21, VLSP
    Installment Agreement (IA) Paragraphs (6)-(8) below and IRM 5.19.1.6.4, Installment Agreements (IAs)
    Currently Not Collectable (CNC), Paragraph (9) below and IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise
    Offer In Compromise (OIC), Paragraph (9) below and IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise
  5. Short Term Payment Plans are informal agreements where taxpayers may full pay their outstanding liability within up to120 days. See IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days. See IRM 5.19.1.6.4, Installment Agreements (IAs).

    Note:

    If, during FCC it is determined an IA cannot be granted because a return is due see IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.

  6. IAs are arrangements between the taxpayer and the IRS, which allow taxpayers to pay their liabilities over time. During the course of IAs, penalties and interest continue to accrue. Generally, no levies may be made during the period that an IA is in effect.

  7. If, during a telephone contact the taxpayer requests an IA, and you determine it must be proposed for rejection, inform the taxpayer that:

    • The IA is subject to managerial approval.

    • Generally, all collection actions are suspended until the taxpayer receives a decision regarding the request.

    • You will attempt to call back within five (5) days; however, if you are unable to reach them by phone, they will receive a letter with our determination for the request within 14 days.

  8. If the taxpayer is denied an IA, see Appeals procedures in IRM 5.19.8, Collection Appeal Rights. All proposed rejections are subject to independent review before informing the taxpayer of the rejection, if they meet associated criteria. See IRM 5.19.1.6.4.9, IA Rejection Criteria. For independent review procedures, see IRM 5.19.1.6.4.10, Proposal to Reject IA to Independent Review.

  9. If the taxpayer indicates they cannot pay, secure financial information to evaluate the taxpayer's ability to pay and consider if they meet CNC requirements or OIC requirements. See IRM 5.19.13, Campus Procedures for Securing Financial Information, and IRM 5.19.17, Campus Currently Not Collectible and Offers in Compromise.

    Reminder:

    Financial information is not required if the taxpayer meets CNC Exception criteria. See IRM 5.19.17.2.1.2, CNC Exception Processing.

  10. If the taxpayer refuses to pay, see IRM 5.19.1.6.1, Taxpayer Refuses to Pay.

Taxpayer Refuses To Pay

  1. If the taxpayer refuses to pay, document the taxpayer’s refusal to pay in AMS comments.

    If ... Then ...
    ACS/ST 24, Warn the taxpayer of enforcement action and follow normal enforcement procedures. IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection.
    Notice Status Accounts, Input CC STAUP 2201 which generates a final notice to the taxpayer and sends the account to ACS.
  2. If a wage levy was established by ACS or Field Assistance on a ST 22 account and an initial payment is received, see IRM 5.19.4.4.5, Partial Pay Levies. If two or more payments are received, see IRM 5.19.4.4.6, Continuous Wage Levies - E7 Payment Processing.

Can Full Pay Balance Due Now (Payoff)

  1. These agreements may be granted on assessed or pre-assessed balances for all IMF individual, BMF out-of-business or BMF in-business non-trust fund taxpayers. For ALL FUNCTIONS, phone or paper, follow instructions in paragraphs (2) through (10).

  2. Use CC INTST, the AMS Full Pay Calculator, the IAT Compliance Suite Payment Calculator, or CC COMPA to compute the payoff amount to the full pay date (see paragraph (5)). For restricted interest computation, refer to IRM 20.2.1.5, Normal and Restricted Interest.

  3. Ask the taxpayer if there is any recent payment(s) or levy(s) potentially affecting their account balance. Reduce the payoff amount by anticipated credits not yet pending on IDRS.

  4. If payment is submitted via mail, IRS Direct Pay (IMF taxpayers only), EFTPS or credit card within ten days, follow the Full Pay procedures below. For payments made after ten days, follow IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days.

  5. For payoff requests, compute the payoff as follows and document the amount and computation date on AMS:

    Phones Action
    If the taxpayer will mail their payment or take to TAC Office, Compute the payoff to ten days from the anticipated payment date.
    For debit/credit card, IRS Direct Pay or PayNearMe payments, Compute the payoff to the date the taxpayer states they will authorize the payment.
    For payments made via EFTPS, Compute the payoff amount to the date the payment is requested by the taxpayer unless requested after 8:00 PM ET; if so, use the next day.
    Correspondence Action
    If the taxpayer will mail their payment by a specific future date, Compute the payoff to 21 days from the anticipated payment date.
    If the taxpayer provides no date, or the date has passed, Compute the payoff to 30 days from today.
  6. For COMBO accounts in ST 22 or 24 (IMF or BMF) allow the full pay within 10 days and establish a firm date for filing the missing returns. Refer to IRM 5.19.1.4.4.1, Full Compliance Check. Refer to IRM 5.19.1.4.1(3), Account Actions on Referral/Redirects, for modules in ST 24. AMS must be documented with the terms of filing and payment commitments.

  7. If there are modules in ST 23, input CC MFREQ and TC 290, PC 5 to force accruals to post. For restricted penalty computation, refer to IRM 20.1.2, Failure To File/Failure To Pay Penalties. For Modules in ST 53, reverse the TC 530 with a TC 531 to include the amount in the balance due computation.

  8. Advise the taxpayer to send the payment ensuring IRS receipt by the promised date. Provide the campus address for mailing payments and complete instructions to the taxpayer regarding payments. IRM 5.19.1.2.7, Ways to Make Payments.

  9. For Notice Status Cases:

    If ... Then ...
    ST 21, Input CC STAUP 5808.
    All others, Input CC STAUP 2208.

    Reminder:

    If the request date to full pay falls within the grace period of the notice, no CC STAUP is required.

  10. For ACS/ACSS: Reassign case as follows:

    If ... Then ...
    A "FNL NOT" date displays on the ACS MOD Screen for all balance due tax modules, Enter "TOE3 XX,FLPY" .
    A "FNL NOT" date is missing from one or more balance due tax modules and there is a levy source, Enter "TOE2 XX,FLPY" .
    All other cases, Enter "TOI7 XX,FLPY" .

    Note:

    If there are no levy sources on ACS, send case "TOI7 XX,FLPY" .

    Note:

    "XX" = The number of days to mailing date plus 21.

  11. Enter the promise to pay date and amount on AMS comments or CC ENMOD if no access to AMS. See IRM 5.19.1.2.4, Documenting Account Actions.

  12. Summarize the full payment agreement verbally or in writing. When appropriate, provide a warning of enforcement action. See IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection.

Short Term Payment Plan Within 120 Days

  1. IMF, BMF out of business only or BMF in business non trust fund taxpayers may be granted Short Term Payment Plans up to 120 days for modules in Notice Status and ST 22 (or ST 23 or ST 24), if no prior Short Term Payment Plan has been granted.

    Exception:

    A request for a Short Term Payment Plan on post-petition liabilities is non-processable when a taxpayer is in bankruptcy. See IRM 5.19.1.5.2.2, Insolvency - Short Term Payment Plan/IA Requests on Post-Petition Periods.

    If ... And ... Then ...
    AM receives a call, A module is in ST 22 ACS, Transfer to ACS for processing. See IRM 5.19.1.3.2.1.1 , ACS Transfer Information, and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

    Note:

    If a Short Term Payment Plan is approved on an account in ST 22, move the case to the appropriate ACS inventory for the payment to post. If a Short Term Payment Plan is approved on an account in Notice Status, input the agreement using CC IAGRE to place the account in ST 60.

    Example:

    The taxpayer states they can full pay within 60 days and there are balance due modules in ST 22 or 24 and there have been no prior Short Term Payment Plan given; grant the taxpayer's request. Inform the taxpayer payment must be received by IRS by the promised date. If the final notice was issued and there are levy sources present, move the case to E3 inventory; if the final notice was not issued and there are levy sources present, move to the case to E2 inventory. If there are no levy sources move to I7 inventory, with a follow up of 21 days past the promise date for payment receipt and processing. The taxpayer calls on the 60th day requesting an additional 60 days to full pay; you may extend for 60 additional days. Do not allow more than the maximum of 120 days, this does not include the additional seven days for internal processing of the payment.

  2. Such agreements may be granted on assessed or pre-assessed balances for all IMF individual, BMF out-of-business or BMF in business non trust fund taxpayers; see IRM 5.19.1.2.6.2, Short Term Payment Plans, for authority levels and duration of Short Term Payment Plans. Taxpayers do not qualify for 120 day Short Term Payment Plans if previously allowed the maximum days. A pre-assessed Short Term Payment Plan up to 120 days can be granted on correspondence; follow the same established criteria: IRM 5.19.1.6.4.15, Pre-Assessed IA Requests.

  3. This type of agreement cannot be granted for any IBTF taxpayer . Any taxpayer with an open employment tax filing requirement is considered in-business and is not eligible for this type of agreement for past due trust fund taxes. See IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

  4. Use CC INTST, the AMS Full Pay Calculator, the IAT Compliance Suite Payment Calculator, or CC COMPA to compute the payoff amount to the full pay date (see paragraph (5)). For restricted interest computation, refer to IRM 20.2.1.5, Normal and Restricted Interest.

  5. All actions taken on the account must be clearly documented on AMS. Refer to IRM 5.19.1.2.4, Documenting Account Actions. See Exhibit 5.19.1-4, IDRS Input of Short Term Payment Plans, 120 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA, and Exhibit 5.19.1-5, IDRS Input of Short Term Payment Plans, 120 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA.

  6. These procedures also include taxpayers who claim they are filing a refund return or an amended return that will full pay their balance due.

  7. The taxpayer can request more than one Short Term Payment Plan provided the total time does not exceed maximum days stated in paragraph (1) above.

  8. If a taxpayer is in Notice Status and requests a Short Term Payment Plan for 90 days, and a prior request was granted for the maximum of 120 days, do not allow additional time unless there are unusual circumstances such as Combat Zone or a disaster area declared by the president. Document AMS in detail with the reason for granting the additional time. If additional time is not granted, other payment options and methods should be discussed.

  9. If the taxpayer does not qualify for a Short Term Payment Plan of up to 120 days, determine if the taxpayer meets IA criteria. IRM 5.19.1.6.4.5, Account Statuses Affecting IAs.

    Exception:

    If none of the new modules were previously included in a Short Term Payment Plan, then allow up to 120 days. If any new module(s) post to a previously allowed time to full pay, you may only allow additional time up to a total of 120 days (from the original request date)..

    Note:

    You must consider all previously granted Short Term Payment Plans.

    Caution:

    ACS or FA do not establish up to 120 day Short Term Payment Plans when any module is in ST 22 using CC IAGRE. These cases are being monitored on the ACS system for receipt of payment. AM, CSCO or FA will establish any Short Term Payment Plans up to 120 days, using CC IAGRE.

  10. If an IMF or BMF taxpayer has an open TDI, see return filing requirements. IRM 5.19.1.4.4.1, Full Compliance Check. Allow the Short Term Payment Plan for up to 120 days if it meets criteria and establish a firm date for filing the missing returns within the appropriate time frames.

    Caution:

    IDRS will not allow the input of CC IAGRE when there is an open TDI. For these agreements, input a CC STAUP for the next Notice Status for 9 cycles. Document AMS of return requested and Short Term Payment Plan.

  11. When working correspondence, the date used to determine the start of the maximum Short Term Payment Plan is within 120 days time frame from the IRS received date on the correspondence, or postmark if no IRS receive date. Input the Short Term Payment Plan, except when ten days or less of the Short Term Payment Plan time frame remains; In that instance, document AMS with the Short Term Payment Plan for up to 120 days information (number of days requested) and:

    1. For Notice Status accounts, if ST 21, input CC STAUP to 5805; all other statuses, input CC STAUP to 2205.

    2. For ST 22 accounts, reassign.

  12. If the taxpayer requests a Short Term Payment Plan for an IA in ST 6X, deny the request and inform them a Short Term Payment Plan does not extend their time for collection appeal rights. Do not convert a taxpayer request for an IA that is for 120 days or less to a Short Term Payment Plan.

    Caution:

    Per IRC 7122(e)(2), there are appeal rights associated with an IA that do not apply to Short Term Payment Plans. Taxpayers may appeal the modification or termination of an IA; taxpayers may also appeal the rejection of a proposed IA.

    Reminder:

    While we cannot convert an existing IA to a Short Term Payment Plan, the taxpayer may submit full payment at any time. Advise the taxpayer they may call 800-829-1040 to obtain a current pay off amount, when they are ready to send full payment.

  13. Use the following table when processing a Short Term Payment Plan and no TDIs are present:

    Note:

    If the maximum days for a Short Term Payment Plan were previously granted, deny the request.

    If ... And ... Then ...
    ST 22 or ST 24, Other periods in ST 71 with an unreversed TC 480 or TC 780 (-Y Freeze), Advise the taxpayer to call the OIC Unit in the applicable Compliance Campus Location within 10 days. See SERP for a listing of OIC Sites under the Who/Where tab.
    1. Enter history code "TOE4,45"

    2. Warn the taxpayer failure to pay could result in enforcement action per IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection

    Notice Status, With other unreversed TC 480 and TC 780 (ST 71) modules (-Y Freeze),
    1. Advise the taxpayer to call the OIC Unit in the applicable Compliance campus location within ten days. See SERP for a listing of OIC Sites under the Who/Where tab.

    2. Enter CC STAUP 2206.

    ST 22, IMF, BMF out of business or BMF in business non trust fund,
    1. If a "FNL NOT" date is shown in the ACS MOD Screen for all balance due tax modules and levy sources are available, enter history code "TOE3XXX,FLPY" .

    2. If a levy source is available but the "FNL NOT" is not shown for all modules, input "TOE2XXX,FLPY" . Otherwise, input "TOI7XXX,FLPY" .

    3. Extend the follow-up date for the first deadline plus 21 days for payment.

      Example:

      The taxpayer is granted a Short Term Payment Plan for 120 days to full pay their ST 22 account and a "FNL NOT" date is shown on the ACS MOD screen for all the balance due modules and levy sources are available, enter history code "TOE3,141,FLPY" .

    4. Release levies unless they are a condition of the Short Term Payment Plan for up to 120 days; for levy release procedures. See IRM 5.19.4.4.10, Levy Release: General Information.

    5. Warn the taxpayer failure to pay could result in enforcement action per IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection.

    ST 24, IMF, BMF out of business or BMF in business non trust fund,
    1. Document AMS. See IRM 5.19.1.4.1(3), Account Actions on Referral/Redirects.

    ST 60, CTLV Continuous Wage Levy (ALN xx08),
    1. Leave CTLV in place, advise the taxpayer when they make full payment the levy will be released.

    ST 60, Regular IA, Leave history in AMS, do not change the current IA. See paragraph (12) above.
    ST 53 or 23 not on IDRS (on CC IMFOL/BMFOL but not IDRS), Intentionally left blank IRM 5.19.1.6.4.5(11), Account Statuses Affecting IAs.

    Caution:

    Input the IA before CC MFREQ or the computer will not allow CC IAGRE input.

    Notice Status, IMF, BMF out of business or BMF in business non trust fund,
    1. Input the Short Term Payment Plan using CC IAGRE.

  14. AMS must be documented with the terms of filing and payment commitments; see Exhibit 5.19.1-4, IDRS Input of Short Term Payment Plans, 120 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA, and Exhibit 5.19.1-5, IDRS Input of Short Term Payment Plans, 120 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA.

  15. Send Letter 681C, Proposal to Pay Later Accepted, to confirm the Short Term Payment Plan including:

    • Payment date,

    • Amount due (computed to the payment date),

    • Warning of enforcement action (when appropriate - see IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection), and

    • Campus address to mail the payment.

    Note:

    See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

    Note:

    For the return and payment addresses, use the Service Center payment address based upon Submission Processing. See SERP, Who/Where tab, Collections Payment Addresses.

    Note:

    During weekend processing, TC 971 AC 899 are systemically generated on all modules included in a Short Term Payment Plan that were input to IDRS; this entry identifies why the account became ST 60. The failure to pay rate is not reduced on Short Term Payment Plans.

Installment Agreements (IAs)

  1. For information on oral statements, see IRM 21.1.3.20, Oral Statement Authority.

  2. Written requests stating one or more of the following statements:

    • I need to, or would like to make payments

    • I can send payments

    • send me a bill every month

    • I would like to make installments

    IA requests are received on correspondence (including Form 433-D, Installment Agreement), and Form 9465, Installment Agreement Request. Only process correspondence as a valid IA request where it is clear the taxpayer has requested to make payments on their tax debt.

    Note:

    Form 9465-FS, Installment Agreement Request, is now obsolete; however if one is received it may be accepted.

  3. You have the authority to grant an IA either orally or in writing unless it is a DDIA. A DDIA requires the taxpayer's signature. IRM 5.19.1.6.4.13, DDIA. If you orally grant an IA, you must still send a written confirmation of the agreement by mail to the taxpayer.

  4. If Form 433 is received, input the financial data on AMS to determine if the taxpayers’ ability to pay (full pay, Short Term Payment Plan, IA or is unable to pay), refer to IRM 5.19.13, Campus Procedures for Securing Financial Information.

    Exception:

    If at any time during the process the taxpayer qualifies for, and agrees to a SIA, input of the financial information is not necessary. Input the IA as agreed to, document AMS with SIA information and destroy the Form 433.

  5. Requests may be received by only one taxpayer on a joint liability wishing to establish an IA. "Mirroring" of Married Filing Joint (MFJ) accounts can be done to provide the ability for the secondary taxpayer to make payments in these situations, IRM 5.19.1.6.7.1, Front End Mirror Assessments Process for IA Closures.

  6. If receiving a request for an IA from the taxpayer via e-mail, DO NOT respond via e-mail. Use of e-mail to contact the taxpayer is prohibited due to disclosure issues. Contact the taxpayer by phone or correspondence. If using correspondence, advise the taxpayer to call the toll free number to request an IA.

  7. Consider which of the following types of IAs may be considered if the taxpayer meets all other IA criteria; filing and paying compliance, and are within the dollar criteria for each specific type of IA.

  8. Guaranteed IA, IRC 6159(c), requires the IRS to accept the taxpayer's proposal of an IA if the following conditions are met:

    • The taxpayer is an individual and owes income tax of $10,000 or less, excluding penalties and interest. See IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, for case processing authority levels.

      Note:

      Unlike the criteria for SIAs, the dollar limit for guaranteed IAs of $10,000 or less only applies to tax. The taxpayer may owe additional amounts in penalty and interest (both assessed and accrued) and qualify for a guaranteed IA, so long as the tax liability alone is not greater than $10,000.

    • During the preceding five taxable years, the taxpayer (including their spouse if the requested IA is for a jointly filed return), has not failed to file or to pay income taxes, nor entered an IA for payment of taxes).

    • The taxpayer cannot pay the tax immediately.

      Exception:

      As a matter of policy, the Service grants guaranteed agreements even if taxpayers are able to fully pay their accounts.

    • The IA provides for full payment of the liability within three (3) years.

    • The taxpayer agrees to continue to comply with the tax laws and the terms of the IA for the period (up to three years) the IA is in place.

    • A Guaranteed IA must be allowed even if it is determined the taxpayer has the ability to make larger monthly payments; accept the IA regardless of the amount proposed. However, the payment amount must provide for full payment of the liability within three (3) years.

      Example:

      $5, $10, etc.

      Note:

      Use the same ALN for these IAs as for SIAs: Exhibit 5.19.1-9, ALNs.

  9. SIA $25,000 and under: Type of entity:

    • IMF

    • Out of Business BMF

    • BMF Income Tax ONLY (Form 1120, Form 1065 - Late Filing Penalty)

    The AAB (CC SUMRY) is $25,000 or less and:

    • The AAB (CC SUMRY balance) will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first. No financial statement, managerial approval or NFTL determination is required for SIAs. See IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, for case processing authority levels.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Reminder:

    Employees considering SIAs can apply the Express Filing Compliance Check. See IRM 5.19.1.4.4.1.1, Express Filing Compliance Check.

    Note:

    If the taxpayer meets TAS referral criteria, see IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS).

  10. SIA over $25,000: CSCO, ACS, ACSS and Field Assistance employees are authorized to establish IAs for balances using SIA over $25,000 criteria (IMF and OOB Sole Proprietors only) when the AAB (CC SUMRY) is between $25,001 and $50,000 and:

    • The AAB (CC SUMRY balance) will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first. In addition:

    • If the IA is established as a DDIA or PDIA, then no NFTL determination is required. See IRM 5.19.1.6.4.13, DDIA, and IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement. For NFTL filing procedures see IRM 5.19.4.5.3.1, Before Filing NFTLs, and IRM 5.19.4.6.1, How to File a NFTL. If the taxpayer objects to the NFTL filing, see IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures, for CAP information.

    No managerial approval or NFTL determination is required for SIAs over $25,000. See IRM 5.19.1.2.6(4), IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, for case processing authority levels.

    Reminder:

    Employees considering SIAs can apply the Express Filing Compliance Check. See IRM 5.19.1.4.4.1.1, Express Filing Compliance Check.

  11. Expanded IA – For aggregate assessed balances (AABs) (CC SUMRY balance) greater than $50,000 and up to $100,000 and the following types of entities:

    • IMF

    • BMF OOB Sole Proprietors ONLY

    1. The minimum payment amount is determined by dividing the CC SUMRY balance by 84; however, the IA must resolve all balances due prior to the expiration of the CSED. CSCO, ACS, ACSS and Field Assistance employees are authorized to establish Expanded IAs. (Employees can use the IAT Compliance Suite Payment Calculator to make this determination.)

    2. No CIS is required if paying by DDIA or PDIA. (Taxpayer must authorize DDIA or PDIA before IA is established to qualify.) A CIS is required for all other payment methods (with limited internal verification, as described in IRM 5.19.13.1.3, Asset/Income/Expense Verification and Substantiation, and Exhibit 5.19.13-2, Verify Financial Statement).

    3. Managerial approval is required.

    4. A NFTL determination is required. For NFTL filing procedures see IRM 5.19.4.5.3.1, Before Filing NFTLs, and IRM 5.19.4.6.1, How to File a NFTL. If the taxpayer objects to the NFTL filing, see IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures, for CAP information.

    5. Use 09 in the YY position of the ALN. See Exhibit 5.19.1-9, ALNs.

  12. NSIA or Regular IA, NSIA is considered when the taxpayer cannot qualify for a SIA or Expanded IA. CSCO, ACS, ACSS and Field Assistance employees are authorized to establish NSIAs. The agreement must be fully paid prior to the CSED. A complete financial statement must be completed to determine the monthly payment amount(s). If the financial analysis supporting a prior NSIA determination is no more than twelve months old, a new liability or liabilities may generally be closed using the same determination without further investigation for an amount up to (total of all modules) $25,000 including previous modules included in the IA. See IRM 5.19.1.2.6.3(2), Installment Agreements, and IRM 5.19.13, Campus Procedures for Securing Financial Information.

    Note:

    If liquidation of any asset(s) or equity in an asset will result in full pay or a substantial partial payment, see IRM 5.19.13.2.4, Making the Collection Decision.

    Note:

    NSIAs are not considered if the balance is ≡ ≡ ≡ ≡ or below.

    Reminder:

    Managerial approval is required for the closure. See IRM 5.19.1.6.4.8, IA Managerial Approval.

  13. PPIA: If full payment cannot be secured by the CSED and the taxpayer has requested to make payments or has some ability to pay, a PPIA should be considered. CSCO, ACS, ACSS and Field Assistance employees are authorized to establish PPIAs. See IRM 5.19.1.2.6.3(2), Installment Agreements, and IRM 5.19.1.6.5, PPIA, even if the taxpayer qualifies for a CNC (establish account as a back up TC 530).

    Note:

    Taxpayers entering PPIAs who have defaulted an IA in the past 24 months will be required to make monthly payments via DDIA or PDIA unless they are unbanked and unemployed/self employed. See IRM 5.19.1.6.5.3.2, Revising/Reinstating PPIAs.

  14. IBTF: AM, CSCO, ACS, ACSS and Field Assistance employees are authorized to establish IBTF Express Agreements up to $25,000. See IRM 5.19.1.2.6.3, Installment Agreements for case processing authority levels, and IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, for additional information.

    Reminder:

    IBTF Express Agreements between $10,000 and $25,000 MUST be established as a DDIA.

  15. An IA cannot be considered unless all filing and payment compliance has been addressed for IMF and Out-of-Business Sole Proprietor, IRM 5.19.1.4.4.1, Full Compliance Check. To determine if the account meets campus authority level for the AAB (CC SUMRY) modules, see IRM 5.19.1.2.6.3, Installment Agreements, for case processing authority levels, and IRM 5.19.1.6.4.5, Account Statuses Affecting IAs.

Determining Appropriate IA
  1. Determine if the account meets SIA criteria, based on the AAB (CC SUMRY) or if the IA requires securing a financial statement. See IRM 5.19.1.2.6.3, Installment Agreements.

    Note:

    If an IA determination cannot be made within 24 hours, and the request meets pending IA criteria: IRM 5.19.1.6.4.7, Pending IA Criteria. You must input a TC 971 AC 043 to stop any collection activity while making an IA determination.

  2. When speaking to the taxpayer or working correspondence and the AAB (CC SUMRY) amount is $25,000 or less (including any modules in ST 53 or 23, as well as pre-assessed/unassessed modules), follow the procedures in the table below:

    Note:

    AM employees, see IRM 5.19.1.3.3, For AM Employees.

    Exception:

    For IBTF Express Agreements, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

    Note:

    Refer to IRM 5.19.1.4.1(3), Account Actions on Referral/Redirects, for modules in ST 24.

    Reminder:

    ACS Employees: Refer to Exhibit 5.19.1-2, ACS OPA Call Flow.

    Note:

    AM Employees: Refer to IRM 5.19.1.6.8, Online Payment Agreements (OPA).

    If ... And ... Then ...
    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Correspondence,

    • Phone request, or

    • Face to face request

    A monthly payment amount is proposed that meets Guaranteed IA criteria (See IRM 5.19.1.6.4(8), IAs),
    1. Process as a Guaranteed IA for the monthly payment amount proposed by the taxpayer.

    2. Send Letter 2273C, Installment Agreement Accepted; Terms Explained, (or other appropriate letter). See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

    3. Document AMS.

    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Correspondence,

    • Phone request, or

    • Face to face request

    • The AAB (CC SUMRY balance) will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first,

    Note:

    The payment amount need not be the same throughout the 72 months; it can be an IA with increasing payments provided the AAB (CC SUMRY) is full paid within 72 months,

    1. Process as a SIA $25,000 and under for the monthly payment amount proposed by the taxpayer.

    2. Send Letter 2273C, Installment Agreement Accepted; Terms Explained, (or other appropriate letter). See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

    3. Document AMS.

    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (revision 12-2011 or earlier), or

    • Correspondence

    No monthly payment amount is proposed,
    1. The proposal does not meet pending IA criteria.

    2. Follow instructions in IRM 5.19.1.6.4.7.1, Cases Not Meeting Pending IA Criteria.

    • Phone request, or

    • Face to face request,

    No monthly payment amount is proposed,
    1. The proposal does not meet pending IA criteria.

    2. Inform the taxpayer that their IA request cannot be processed without a proposed amount. Advise them of the minimum monthly payment amount and terms we can accept without additional financial information.

      • If the taxpayer proposes or agrees to a monthly payment amount that meets SIA criteria), grant the IA.

      • If the taxpayer proposes a monthly payment amount does not meet SIA criteria, request financial information.

        Exception:

        If the balance is less than deferral levels per IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees, then close the case using deferral procedures.

        1. If the taxpayer immediately (verbally or by fax during the phone contact) supplies the financial information and an IA can be made, process it accordingly. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

        2. If you cannot secure the financial information immediately (verbally or by fax during the phone contact), follow the instructions in paragraphs (3)-(6) below.

    3. If the taxpayer meets all Pending IA criteria, including a proposed monthly payment amount, input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    4. Send Letter 484C, Collection Information Statement Requested (Form 433-F /433D); Inability to Pay, to the taxpayer.

      • Ask the taxpayer to complete and submit Form 433-F, Collection/Information Statement, within 30 days from the date of the letter. Enclose Form 433-F, Collection/Information Statement.

    5. Allow the taxpayer time to submit financial information. See IRM 5.19.1.6.4.7.2, Requests Meeting Pending IA Criteria.

    6. Document AMS.

    • Form 9465, Installment Agreement Request (revision 12-2012 or later) (or Form 9465-FS, Installment Agreement Request),

    No monthly payment amount is proposed,
    1. Establish an IA, using the minimum monthly payment amount to meet SIA $25,000 and under criteria.

    2. Send Letter 2274C, Your Request For Installment Agreement Has Been Granted. See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

      • Provide the terms of the IA granted.

      • Inform them if they cannot pay the minimum monthly payment amount, they should complete and submit Form 433-F, Collection/Information Statement. Enclose Form 433-F, Collection/Information Statement.

    3. Document AMS.

    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Correspondence,

    • Phone request, or

    • Face to face request

    A monthly payment amount is proposed that does not meet SIA $25,000 and under criteria and the taxpayer has provided financial information.

    Example:

    Completed Form 433-F, Collection/Information Statement.

    1. If IA cannot be input immediately, input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. Analyze financial statement to determine if the proposed payment amount can be accepted. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      1. If the proposed NSIA or PPIA can be accepted, grant the IA.

      2. If the proposed NSIA or PPIA cannot be accepted, prepare for rejection of the IA and follow rejection procedures. See IRM 5.19.1.6.4.9, IA Rejection Criteria.

    3. Document AMS.

    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Correspondence,

    • Phone request, or

    • Face to face request

    A monthly payment amount is proposed that does not meet SIA $25,000 and under criteria and the taxpayer has not provided financial information.
    1. If speaking with the taxpayer, inform them that their IA request cannot be processed without further information. Advise them of the minimum proposed monthly payment amount we can accept.

      • If the taxpayer agrees to this amount, grant the IA.

      • If the taxpayer does not agree to this amount, request financial information.

        Exception:

        If the balance is less than deferral levels per IRM 5.19.1.2.6.1, Tolerance and Deferral - All Employees, then close the case using deferral procedures.

      Note:

      If working correspondence, request financial information. See paragraph b) below.

      1. If the taxpayer immediately (verbally or by fax during the phone contact) provides the financial information, process it accordingly. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      2. If you cannot secure the financial information immediately (verbally or by fax during the phone contact or working correspondence), follow the instructions in paragraphs (2)-(5) below.

    2. Input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    3. Send Letter 484C, Collection Information Statement Requested (Form 433-F /433D); Inability to Pay, to the taxpayer.

      • Include the minimum proposed monthly payment amount we can accept without financial information.

      • Inform them if they cannot pay the minimum monthly payment amount, they should complete and submit Form 433-F, Collection/Information Statement. Enclose Form 433-F, Collection/Information Statement.

      • Ask the taxpayer to respond with the requested information within 30 days from the date of the letter.

    4. Allow the taxpayer time to respond with the requested information. See IRM 5.19.1.6.4.7.2, Requests Meeting Pending IA Criteria.

    5. Document AMS, including the initial payment amount requested.

    Reminder:

    The first monthly payment should be at least the amount of the applicable user fee when the proposed payment amount is less than the user fee; subsequent payments revert to the requested payment amount.

    Note:

    If the taxpayer will make a Voluntary Lump Sum Payment (VLSP), see IRM 5.19.1.6.4.21, VLSP.

  3. When speaking to the taxpayer or working correspondence and the AAB (CC SUMRY) amount is more than $25,000 (including any modules in ST 53 or 23, as well as pre-assessed/unassessed modules), follow the procedures in the table below. See IRM 5.19.1.2.6.3, Installment Agreements.

    Exception:

    AM employees see IRM 5.19.1.3.3, For AM Employees.

    Exception:

    For IBTF Express Agreements IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

    Note:

    Refer to IRM 5.19.1.4.1(3), Account Actions on Referral/Redirects, for modules in ST 24.

    If ... And ... Then ...
    The taxpayer indicates they will make a payment that will reduce the balance due to $25,000 or less and,

    Caution:

    Do not establish an IA including a VLSP. The VLSP must be received before the IA can be granted.

    • The AAB (CC SUMRY balance) will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first,
    1. Suspend the account to wait on the VLSP, following procedures in IRM 5.19.1.6.4.21, VLSP.

    The taxpayer is IMF or OOB BMF Sole Proprietor only and their balance is between $25,001 and $50,000,
    • The AAB (CC SUMRY balance) will be fully paid in 72 months, or

    • The agreement will be fully paid prior to the CSED,

    whichever comes first,
    1. Determine whether taxpayer meets SIA over $25,000 criteria per procedures in IRM 5.19.1.6.4(10), Installment Agreements (IAs)..

    2. Document AMS.

    The taxpayer is IMF or OOB BMF Sole Proprietor only and their balance is between $25,001 and $50,000, A monthly payment amount is proposed, but:
    • The AAB (CC SUMRY balance) cannot be full paid within 72 months or the agreement cannot be full paid by the CSED, and

    • The taxpayer provides financial information,

    1. If IA cannot be input immediately, input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. Analyze financial statement. Determine whether the proposed payment amount can be accepted. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      1. If the proposed Non-SIA or PPIA can be accepted, grant the IA.

      2. If the proposed Non-SIA or PPIA cannot be accepted, prepare for rejection of the IA and follow rejection procedures. See IRM 5.19.1.6.4.9, IA Rejection Criteria.

    3. Document AMS.

    The taxpayer is IMF or OOB BMF Sole Proprietor only and their balance is between $25,001 and $50,000,
    • The AAB (CC SUMRY balance) cannot be full paid within 72 months or the agreement cannot be full paid by the CSED, and

    • The taxpayer does not provide financial information,

    1. If speaking with the taxpayer, inform them that their IA request cannot be processed without further information. Ask them to provide a financial statement.

      Note:

      If working correspondence, request financial information. See paragraph b) below.

      1. If the taxpayer immediately (verbally or by fax during the phone contact) provides the financial information, process it accordingly. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      2. If you cannot secure the financial information immediately (verbally or by fax during the phone contact or working correspondence), follow the instructions in paragraphs (2)-(5) below.

    2. Input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    3. Send Letter 484C, Collection Information Statement Requested (Form 433-F /433D); Inability to Pay.

      • Ask the taxpayer to complete and submit Form 433-F, Collection/Information Statement, within 30 days of the date of the letter. Enclose Form 433-F, Collection/Information Statement.

    4. Allow the taxpayer time to submit financial information. See IRM 5.19.1.6.4.7.2, Requests Meeting Pending IA Criteria.

    5. Document AMS.

    The taxpayer is IMF or OOB BMF Sole Proprietor only and their balance exceeds $50,000, The taxpayer provides financial information,
    1. If IA cannot be input immediately, input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. Determine whether the proposal meets Expanded IA criteria. See IRM 5.19.1.6.4(11), Installment Agreement (IA).

    3. Analyze financial statement. Determine whether the proposed payment amount can be accepted. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      1. If the proposed Non-SIA or PPIA can be accepted, grant the IA.

      2. If the proposed Non-SIA or PPIA cannot be accepted, prepare for rejection of the IA and follow rejection procedures. See IRM 5.19.1.6.4.9, IA Rejection Criteria.

    4. Document AMS.

    The taxpayer is IMF or OOB BMF Sole Proprietor only and their balance exceeds $50,000, The taxpayer does not provide financial information,
    1. If speaking with the taxpayer, inform them that their IA request cannot be processed without further information. Determine whether the proposal meets Expanded IA criteria. See IRM 5.19.1.6.4(11), Installment Agreement (IA). Ask them to provide a financial statement.

      Note:

      If working correspondence, request financial information. See paragraph b) below.

      1. If the taxpayer immediately (verbally or by fax during the phone contact) provides the financial information, process it accordingly. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

      2. If you cannot secure the financial information immediately (verbally or by fax during the phone contact or working correspondence), follow the instructions in paragraphs (2)-(5) below.

    2. Input TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    3. Allow the taxpayer time to submit financial information. See IRM 5.19.1.6.4.7.2, Requests Meeting Pending IA Criteria.

    4. Send Letter 484C, Collection Information Statement Requested (Form 433-F/433D); Inability to Pay.

      • Ask them to complete and submit Form 433-F, Collection/Information Statement, within 30 days of the date of the letter. Enclose Form 433-F, Collection/Information Statement.

    5. Document AMS.

  4. For NSIA accounts of more than $10,000, make a NFTL determination. For NFTL filing procedures see IRM 5.19.4.5.3.1, Before Filing NFTLs, and IRM 5.19.4.6.1, How to File a NFTL. If the taxpayer objects to the NFTL filing, see IRM 5.19.8.4.16, Collection Appeals Program (CAP) Procedures, for CAP information.

  5. When tools such as CC ICOMP or the IAT Compliance Suite Payment Calculator are used to assist with case processing, document results in AMS history.

  6. Special handling is required for IA requests received from a Sole Proprietor involving both IMF and BMF delinquencies. For procedures, see IRM 5.19.1.6.4.4, IMF/BMF Related Accounts. For additional information on IBTF, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

IA Requirements IBTF Express Agreement
  1. SB/SE CSCO, ACS/ACSS and Field Assistance employees may offer IBTF Express Agreements to small businesses who have an unpaid balance of assessment of $25,000 or less.

    Note:

    These types of IAs are for ALL IBTF accounts which include Sole Proprietors.

  2. W&I AM employees are authorized to offer IBTF Express Agreements to businesses who have an unpaid balance of assessment of $25,000 or less.

  3. Calls or correspondence received by any functions other than those listed above should be routed as indicated below:

    1. For correspondence: Notice Status – Forward to appropriate SB/SE CSCO Campus, or ST 22 - Forward to appropriate SB/SE ACSS Campus.

    2. Calls: Follow IRM 5.19.1.3.5.3.6, BMF Taxpayer.

  4. In order to participate in the IBTF Express Agreements, taxpayers must meet the following criteria:

    • All IBTF Express Agreements require managerial approval.

    • Taxpayers must be in filing compliance. See IRM 5.19.1.4.4.1, Full Compliance Check. If not, the IA will not be granted.

    • Taxpayers have to meet the dollar criteria at the time the IBTF Express IA is granted. The entire liability may not exceed $25,000 AAB (CC SUMRY) when the request is made.

      Note:

      If a taxpayer owes more than $25,000, they can choose to reduce their liability to $25,000 or less by making a lump sum payment in order to participate. The lump sum payment MUST be made prior to the establishment of the IA. The taxpayer must be advised that if the lump sum payment is not received by the promised date that the account will be transferred to an RO. See IRM 5.19.1.6.4.2.1, Lump Sum Payment for IBTF Express ONLY, for additional guidance on handling these types of cases.

    • The entire liability including accruals must be paid within 24 months, or before the CSED, whichever is earlier. To help determine if the account will be fully satisfied within the 24 months, use the IAT Compliance Suite Payment Calculator.

    • The taxpayer must enroll in a DDIA for any IBTF Express Agreements with an AAB (CC SUMRY) between $10,000 and $25,000.

      Note:

      When working with taxpayers who meet the criteria for an IBTF Express Agreement, employees must follow all the procedures for establishing a DDIA. (Non CSCO/ACSS employees are prohibited from inputting the DDIA.) See IRM 5.19.1.6.4.13, DDIA, for additional information on DDIAs.

    See IRM 5.19.1.2.6.3, Installment Agreements, for case processing authority levels.

  5. Accounts less than $10,000 may have an IBTF Express IA without using the DDIA payment option.

  6. If the taxpayer had a previous IBTF Express Agreement with an AAB (CC SUMRY) under $10,000 that defaulted or was terminated, a reinstatement or new IA may be granted immediately if:

    1. The taxpayer re-qualifies for an IA under the above guidelines.

    2. The CSED is protected.

    3. Taxpayers owing less than $10,000 are requesting the option of a Direct Debit payment. See IRM 5.19.1.6.4.13, DDIA.

  7. If the taxpayer had a previous IBTF Express Agreement with an AAB (CC SUMRY) between $10,000 and $25,000 and:

    • The CP 523, Installment Agreement Default Notice, was issued and the account is in ST 64 or ST 22, do not allow a reinstatement or new IA. Accelerate the case to the field. See paragraph (10)(c) or (d) below, as appropriate.

    • The CP 523, Installment Agreement Default Notice, has not been issued and the account is in any status other than ST 64 or ST 22, then a reinstatement or new IA may be granted.

  8. If the taxpayer has a IBTF-Express IA, they can convert to a IBTF-Express DDIA per IRM 5.19.1.6.4.13.1(8), DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, and meet all of the requirements listed in paragraph (2) above.

  9. Request full payment. If the taxpayer is unable to full pay today:

    1. All IBTF Express Agreements require managerial approval.

    2. Grant the IBTF Express Agreement (if it meets the requirements).

    3. Financial is not required.

    4. Secure levy sources.

    5. A NFTL determination is not required employees but may be filed if the NFTL will protect the government’s interest, such as if a property sale is imminent.

    6. If for any reason rejection of the IA is planned, refer to the Independent Reviewer.

  10. Forward requests for an IBTF Express Agreement exceeding the dollar criteria to the field for processing. (This includes requests received on accounts with delinquent returns.)

    1. Enter history item "EXCDIAAUTH" on IDRS CC ENMOD.

    2. If the request meets pending IA criteria, document AMS history and input TC 971 AC 043. Refer to IRM 5.19.1.6.4.7, Pending IA Criteria.

    3. For cases in ST 22, reassign the case "TOI7,TFRO" . See IRM 5.19.5.8.4 , I7 - Transfers Actions.

    4. For cases in Notice Status, input CC STAUP 2209.

  11. If you are speaking with the taxpayer and there are delinquent returns following the procedures in IRM 5.19.1.4.4.1(3) and (4). Then complete all steps in the list below:

    1. Attempt to get the taxpayer to agree to full pay.

    2. Complete the conversation by addressing the FTD requirements; if not current, see IRM 5.19.1.4.4.3, Balance Due Taxpayer Education (Cause and Cure). Explain to the taxpayer they must be current with payments by the specific deadline given for filing delinquent returns.

    3. Input AMS narrative.

    4. Reassign as follows:

      If ... Then ...
      ACS Reassign the case "TOI7 45,RESUBMIT" . See IRM 5.19.5.8.4 , I7 - Transfers Actions.
      Notice Status Input CC STAUP 2209.
  12. If you are working correspondence and there are delinquent returns, deny the request for an IA; accounts with delinquent returns do not qualify for independent review or appeal rights: IRM 5.19.1.6.4.7.1, Responses Not Meeting Pending IA Criteria. Refer the case to the field following the procedures in paragraph (10)(c) or (d) above, as appropriate.

  13. When the taxpayer is not current in making FTD deposits in the current quarter and there are no delinquent returns, complete all steps in the list below:

    1. The account meets pending I/A criteria, input a TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. Follow rejection procedures with appeal rights and independent review. See IRM 5.19.1.6.4.9(2), IA Rejection Criteria.

    3. Refer the case to the field following the procedures in paragraph (10)(c) or (d) above, as appropriate, after the 60 day appeal period.

  14. ACS employees sending the account for managerial approval must reassign the case using one of the following action histories:

    • "TOXX, 05,IBTDDIA" when the balance due is between $10,000 - $25,000.

    • "TOXX, 05,IBTFIA" when the balance due is less than $10,000.

    Note:

    XX = "C0" for ACS call site employees or "S0" for ACSS employees.

  15. Input the IBTF Express IA using Agreement Locator Number (ALN) XX15. XX15 was "previously" set aside for revenue officers but is now required for all functions in relationship to IBTF or IBTF Express Agreements. Exhibit 5.19.1-9, ALNs

    Note:

    The agreement should be input with a regular Streamlined Originator Code (such as 76, 72, etc.). See Exhibit 5.19.1-10, IA Originator Codes

    .

  16. After the IA is input, ACS employees must input action history: ACS: "TOC0, 21,IADONE" ACSS: "TOS0, 21,IADONE" .

  17. After all qualifications are met, and an IBTF Express IA is granted, send Letter 2273C, Installment Agreement Accepted - Terms Explained, (or other appropriate letter). See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

Lump Sum Payment for IBTF Express ONLY
  1. If a taxpayer owes more than $25,000 AAB (CC SUMRY), they can choose to reduce their liability to $25,000 or less by making a lump sum payment in order to participate.

  2. The maximum amount of time allowed for the taxpayer to submit the payment will be 30 days. Allow an additional 15 days to the deadline for the payment to post. AMS histories must be clearly documented.

    1. AM employees cannot process the Lump Sum option, therefore; AM employees will:

      If ... Then ...
      Notice Status, Prepare Form 4442, Inquiry Referral, and fax to the appropriate SB/SE Service Center Collection Campus.
      ST 22, Transfer call to ACS. See IRM 5.19.1.3.2(1), For All Employees.
    2. SBSE CSCO tax examiners must suspend the case, using the Activity Code to "WFIBPD" and maintain the case in their inventory under their control until the payment posts.

    3. SB/SE ACS/ACSS employees will suspend the case and reassign the account "TOR5, 45,IBTF/LS" (ACS) or "TOS5, 45,IBTF/LS" (ACSS).

  3. If the lump sum payment has not been received by the follow-up date, transfer the account to an RO, following the procedures in IRM 5.19.1.6.4.2(10), IA Requirements IBTF Express Agreement.

    Note:

    All other procedures related to VLSPs are to be followed. IRM 5.19.1.6.4.21, VLSP.

IA Requirements - In Business, Non Trust Fund, and/or Form 1120, U.S. Corporation Income Tax Return Only
  1. Forward requests for an IA exceeding authority levels shown in IRM 5.19.1.2.6.3, Installment Agreements, to the field for processing.

    • ACS: Enter "TOI7,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

    • Notice Status: Reassign the account to 6541 on IDRS. Follow instructions in IRM 5.19.1.4.1(8), Account Actions on Referral/Redirects.

  2. ACS W&I EMPLOYEES ONLY working incoming calls transfer calls to SB/SE

  3. Enter history item "EXCDIAAUTH" on IDRS CC ENMOD or document AMS comments with Exceeds IA Authority.

  4. W&I AM, SB/SE CSCO, ACS/ACSS and Field Assistance employees may grant an IA for In-Business No Trust Fund or Form 1120, U.S. Corporation Income Tax Return, income taxes if the balance due is less than $25,000 AAB (CC SUMRY) and will pay within 72 months. See IRM 5.19.1.2.6.3, Installment Agreements, for case processing authority levels. The following guidelines apply:

    1. Prior to establishing an IA, a full compliance check must be completed. IRM 5.19.1.4.4.1, Full Compliance Check.

    2. No financial statement is required

    3. No managerial approval is required

    4. No NFTL determination is required; however, a NFTL may be filed if in the judgment of the contact employee, it would protect the government's interest

      Example:

      Pending sale of property.

    5. Input the IA using the appropriate ALN. Exhibit 5.19.1-9, ALNs.

    6. If rejection of the IA is recommended, refer the case for independent review. IRM 5.19.1.6.4.10, Proposal to Reject IA to Independent Review.

    7. Document AMS comments.

IMF/BMF Related Accounts
  1. When both in business sole proprietor trust fund taxes and IMF taxes are involved, before considering the IA, IRM 5.19.1.6.4.2(1), IA Requirements IBTF Express Agreement.

  2. If the dollar criteria is not met and FCC compliance is met, forward to the field for processing. IRM 5.19.1.6.4.3, IA Requirements - In Business, Non Trust Fund, and/or Form 1120, U.S. Corporation Income Tax Return Only. When sending cases to the field, follow the procedures below:

    1. Input TC 971 AC 043 if the request meets pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria.

    2. Document AMS, including the terms of the proposed IA. Encourage the taxpayer to make voluntary payments until the Revenue Officer contacts them.

    3. Phone operations should advise the taxpayer verbally of the referral to the field. Paper operations should issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, informing the taxpayer of the referral to the field.
      Advise the taxpayer it could take up to 90 days before the RO contacts them.

    4. If any modules are in Notice Status, input CC STAUP 2200 to IDRS for all Notice Status modules.

    5. Transfer the case to the field.

      • ACS: Enter TOI7,TFRO. See IRM 5.19.5.8.4, I7 - Transfers Actions.

      • Notice Status: Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(8), Account Actions on Referrals/Redirects.

      • Provide the taxpayer or representative with the group contact number and address or fax number for correspondence.

    6. Do not request documentation. However, if documentation is received, forward it to the field group. Do not destroy these documents.

  3. When a request for an IA involves an SSN and EIN (Sole Proprietor) or two SSNs, some years filed joint and some single, combine the AAB (CC SUMRY) of all modules. See IRM 5.19.1.2.6.3, Installment Agreements, for case processing authority levels. Determine if the taxpayer meets the requirements to qualify for an IA. An IMF account and related BMF account must be included in one IA. See IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA.

    Example:

    Out of Business Sole-Proprietorship - If the account is both below $25,000 BMF trust fund tax and the overall account is below $50,000 total liability, the IA may be granted as long as the BMF debt will be fully paid within 24 months and the total debt (CC SUMRY) will be fully paid within 72 months.

    Example:

    Partnership/Corporation/LLC - If the BMF trust fund tax balance is below $25,000, and the entity's overall account is over $25,000 total liability (CC SUMRY), the IBTF Express IA may not be granted because overall account balance exceeds $25,000. The only entities eligible for a SIA over $25,000 are IMF and OOB Sole Proprietors.

  4. When the taxpayers are divorced or separated follow IRM 5.19.1.6.7, Mirroring Accounts.

  5. Federal tax refunds are subject to offset to pay balance due accounts during the life of the IA, including refunds from income taxes of individuals whose sole proprietorship or partnerships owe taxes. Ensure a TC 130 is input for the appropriate SSN(s). For TC 130 input see IRM 5.19.10.3.5, Input of TC 130 on IDRS.

  6. For IAs involving cross-references, one account in ST 60 (primary) and the other in ST 63 (secondary). Use the ALN of "XX63" . Cross-reference IAs can be a combination of IMF/BMF or IMF/IMF:

    1. Establish the IA on the account having the earliest CSED expiration date and place the account in ST 60. For input of cross-reference IA, see Exhibit 5.19.1-6, IDRS Input of IAs, CC IAORG, or Exhibit 5.19.1-7, IDRS Input of IAs, CC IAREV.

    2. Input TC 971 AC 063 on the cross referenced module.

    3. Send an appropriate IA acceptance letter and inform the taxpayer(s) both accounts are in IA status and input appropriate comments to AMS. See IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines.

  7. When the first account is full paid, it appears on the IAAL documenting the ST 63 account to be placed in ST 60. For IAAL procedures: IRM 5.19.10.10, IAAL.

Account Statuses Affecting IAs
  1. If any modules are in ST 22 and you do not have access to the ACS system, transfer the caller to ACS. If unable to transfer the call, provide the taxpayer with the toll-free number for ACS. W&I 800-829-7650, SBSE 800-829-3903. See IRM 5.19.1.3.2.1.1, ACS Transfer Information, and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

  2. For correspondence, refer to ACSS. See Document 6209, IRS Processing Codes and Information, Chapter 8, for Notice Statuses.

  3. If there is a TC 480 or TC 780 on the account (ST 71) (-Y Freeze), through AMS generate a Form 4442, Inquiry Referral, to refer the request to the Compliance Services OIC Unit at the campuses. See SERP, under the Who/Where tab for OIC Support locations.

    1. Input a TC 971 AC 043 if pending IA criteria is met and advise the taxpayer their request is being referred to another office for processing.

    2. Input history on AMS or CC ENMOD, "H,44422OIC" or "H,CORR2OIC" . Input CC STAUP 2209 if in Notice Status.

  4. If any modules are in ST 72 (Bankruptcy) (-V Freeze): IRM 5.19.1.5.2, Insolvency Issues, for procedures. If the taxpayer is calling to request an IA, a tool is available under the SERP, Who/Where tab Insolvency (Bankruptcy) Tools link titled Installment Agreement Requests When in a Chapter 13 Bankruptcy Only. Utilize this tool to determine if an IA can be granted.

  5. If there are potential indicators of fraud see IRM 25.1.11.4, Developing Potential Fraud Cases, and the taxpayer initiates an IA, suspend any attempts to resolve the case and advise the taxpayer the case is subject to review and to make voluntary payments in the interim, see IRM 25.1.11.5, Interviewing the Taxpayer.

  6. Research CC INOLES to check for cross-reference IMF/BMF TINs. IRM 5.19.1.6.4.4, IMF/BMF Related Accounts.

  7. For the dollar criteria for BMF accounts Compliance initiated IAs, for IBTF (referred to as In-Business Express IAs) See IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement.

    1. Trust fund returns include:

      Trust Fund Return MFT
      Form CT-1, Employer’s Annual Railroad Retirement Tax Return 09
      Form CT-2, Employee Representative's Quarterly Railroad Tax Return 72
      Form 720, Quarterly Federal Excise Tax Return 03
      Form 941, Employer’s QUARTERLY Federal Tax Return 01
      Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees 11
      Form 944, Employer’s ANNUAL Federal Tax Return 14
      Form 945, Annual Return of Withheld Federal Income Tax 16
      Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons 12

      Note:

      See Document 6209, IRS Processing Codes and Information, Chapter 2, for full listing of MF and NMF MFT Codes.

    2. For In-Business Non-Trust Fund and Corporate accounts in which the only delinquent modules are for Form 1120, U.S. Corporation Income Tax Return. See IRM 5.19.1.6, Methods of Payment.

  8. Filing and paying compliance must be considered prior to granting an IA. IRM 5.19.1.4.4.1, Full Compliance Check.

  9. If not current on payment compliance, follow rejection criteria. IRM 5.19.1.6.4.9, IA Rejection Criteria.

  10. If the request exceeds your functional authority, follow instructions in IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

  11. Research IDRS and check for any balance due modules not current on IDRS (ST 23 or ST 53); these modules must be included in the IA. Take the following actions if ST 23 or ST 53 modules are involved.

    Note:

    You must input the IA before you CC MFREQ or the computer will not allow the CC IAGRE input.

    1. If ST 53 accounts are involved, input a TC 531, reversing the TC 530 and the modules must be included in the IA; use ALN XX32 and input a history on AMS or CC ENMOD if AMS not available, such as "IA30200812" , to include the module in the IA and input assessment indicator "1" on CC IAGRE, allowing the module to be included without defaulting the IA.

    2. If ST 23 accounts are involved, input the IA with CC IAGRE, then CC MFREQ"C" the modules, and include them in the IA; use ALN XX32 and input a AMS history or CC ENMOD, such as "IA30200812" , to include the module in the IA and input assessment indicator "1" on CC IAGRE, allowing the module to be included without defaulting the IA.

    3. For all functions, except ACS, if the only modules involved in the IA are in ST 23 or ST 53, and they are not current on IDRS, you must reverse the TC 530 or CC MFREQ the ST 23 accounts:

      Note:

      Hold the IA request until the module is returned to IDRS, usually two cycles and then input the IA.

    4. ACS takes all actions leading up to establishing the IA on IDRS, including financial statement processing and managerial approval when required.

    5. ACS and CSCO take the following actions:

      If ... Then ...
      ACS call sites receive an IA request and the only modules involved are in ST 23 or 53 (no balance due modules on IDRS)

      Exception:

      If ACSS receives correspondence with modules only in ST 23, 24 or 53, follow Steps "a" through "d" (do not route to CSCO), and follow the "Then" box below for processing.

      ACS takes the following actions:
      1. Input CC MFREQ.

      2. Input TC 971 AC 043.

      3. Inputs TC 531 if applicable.

      4. Documents all pertinent information regarding the IA request in AMS comments including: TIN. Taxpayer name, Tax years, Terms and conditions of the IA, and the date of CC MFREQ and/or TC 531 input.

      5. Sends Form 4442, Inquiry Referral, with action taken (CC MFREQ or TC 531) to the appropriate CSCO Operation.

      CSCO receives Form 4442, Inquiry Referral, with CC MFREQ or TC 531 information CSCO and ACSS take the following actions:
      1. Suspends request and review for IDRS update two cycles after the IDRS input.

      2. If the account is on IDRS, input the IA per comments on AMS, send letter, and destroy the Form 4442, Inquiry Referral.

      3. If the account is not present on IDRS, hold for one additional cycle.

      4. If the account is not present on IDRS after one additional cycle, verify the CC MFREQ or TC 531 was input correctly.