5.19.1 Balance Due

Manual Transmittal

November 01, 2022

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 November 30, 2020.

IRM Subsection Description
IRM 5.19.1.1, Program Scope and Objectives, IPU 21U1096 issued 09-14-2021 Deleted AM as a primary stakeholder under paragraph (6) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.1.5, Program Controls, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (6) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.1.7, Related Resources, IPU 21U0901 issued 07-01-2021 Added new IRM reference for Third Party Contact Program.
IRM 5.19.1.2, Balance Due Overview, IPU 20U1187 issued 11-02-2020 Added references and reorganized paragraph (1). Added exception in paragraph (9) for marking of completed electronic and batched work products.
IRM 5.19.1.2, Balance Due Overview, IPU 21U0435 issued 03-19-2021 Added new paragraph 8 and 9 to include reference to e-Guides for Campus Operations.
IRM 5.19.1.2, Balance Due Overview, IPU 21U1096 issued 09-14-2021 Deleted paragraph (6) with AM guidance as they no longer answer balance due calls due to balance due call routing.
IRM 5.19.1.2, Balance Due Overview, IPU 22U0968 issued 09-22-2022 Added new paragraph (12) to include background information on deployment of Automated Chat and Voice Bots.
IRM 5.19.1.2.1, Submitting SERP Feedback, IPU 22U0551 issued 04-27-2022 Deleted last bullet under paragraph (2) no longer valid due to the discontinuance of the employee suggestion program as of October 1, 2021.
IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party, IPU 20U1187 issued 11-02-2020 Converted bullet list under paragraph (3) to a table for better emphasis. Added paragraph (7) adding guidance for when additional authentication may be required.
IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (3) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party, IPU 22U0551 issued 04-27-2022 Added reference to IRM 21.2.1.56(5), Deaf/Hard of Hearing (DHOH) Callers and TTY/TDD Equipment in table under paragraph (1) for Hearing impaired and Language or sign interpreter.
IRM 5.19.1.2.2, Disclosure Overview: Verifying Identity of Contact Party, IPU 22U0968 issued 09-22-2022 Moved entire section down to the next section, and renumbered subsections to IRM 5.19.1.2.3...
IRM 5.19.1.2.2.2, ACS Call Site - Additional Taxpayer Authentication, IPU 20U1187 issued 11-02-2020 Added two bullets describing instances that may require additional authentication in paragraph (2).
IRM 5.19.1.2.2.2, ACS Call Site - Additional Taxpayer Authentication, IPU 21U1096 issued 09-14-2021 Deleted Paragraph (6) as no longer applicable.
IRM 5.19.1.2.2.3, Transfer Personal Identification Number (PIN) Generation, IPU 20U1187 issued 11-02-2020 Added hyperlinks to paragraph (3).
IRM 5.19.1.2.2.3, Transfer Personal Identification Number (PIN) Generation, IPU 21U1096 issued 09-14-2021 Deleted AM references as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.2.3.1, Transfer Personal Identification Number (PIN) Acceptance, IPU 20U1187 issued 11-02-2020 Added a bullet, and Caution to not accept a Transfer PIN from third parties, in paragraph (1).
IRM 5.19.1.2.2.3.1, Transfer Personal Identification Number (PIN) Acceptance, IPU 21U0901 issued 07-01-2021 Revised paragraphs (2) and (5) to reflect policy change allowing the transfer PIN to cover both basic and additional authentication.
IRM 5.19.1.2.2.3.1, Transfer Personal Identification Number (PIN) Acceptance, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (1) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.3, Call Flow, IPU 21U1096 issued 09-14-2021 Deleted paragraph (2) with AM reference as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.3, Call Flow, IPU 22U0968 issued 09-22-2022 Moved IRM section up to IRM 5.19.1.2.2.
IRM 5.19.1.2.3.3, Transfer Personal Identification Number (PIN) Generation, IPU 22U0968 issued 09-22-2022 Added Exception under paragraph (1) regarding use of the IAT Disclosure tool when not securing a TIN.
IRM 5.19.1.2.4, Documenting Account Actions, IPU 20U1187 issued 11-02-2020 Converted a portion of paragraph (1) into a bullet list. Added a word to paragraph (2). Revised paragraph (4), including adding two examples that show acceptable/non-acceptable documentation.
IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines, IPU 20U1187 issued 11-02-2020 Updated paragraph (12) with the revised title of IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days.
IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines, IPU 21U0184 issued 02-02-2021 Updated Exception under paragraph (7) to extend suspension through 09/30/2021.
IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines, IPU 21U1096 issued 09-14-2021 Updated Exception under paragraph (7) to extend suspension through 12/31/2021.
IRM 5.19.1.2.5, Balance Due Outgoing Correspondence Guidelines, IPU 21U1275 issued 11-18-2021 Updated Exception under paragraph (7) to temporarily extend suspension.
IRM 5.19.1.2.6, Case Processing Authority Levels, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (5) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.6.2, Short Term Payment Plans, IPU 21U0184 issued 02-02-2021 Revised existing reference and added reference to bullet list under paragraph (1) for new subsection 5.19.1.2.6.2.4, Short Term Payment Plans - ACS and ACSS Employees.
IRM 5.19.1.2.6.2, Short Term Payment Plans, IPU 21U1096 issued 09-14-2021 Deleted AM reference as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.6.2.1, Short Term Payment Plans - Accounts Management, AM, Employees, IPU 20U1187 issued 11-02-2020 Revised label and table in paragraph (2) for clarity and changed number of allowable days for short term payment plan to 180. Converted note under table to new paragraph (3), and added bullets to address situations that don’t meet required criteria.
IRM 5.19.1.2.6.2.1, Short Term Payment Plans - Accounts Management, AM, Employees, IPU 21U0184 issued 02-02-2021 Deleted duplicate content from second column of table under paragraph (2).
IRM 5.19.1.2.6.2.1, Short Term Payment Plans - Accounts Management, AM, Employees, IPU 21U1096 issued 09-14-2021 Deleted AM guidance as they no longer answer balance due calls due to balance due call routing.
IRM 5.19.1.2.6.2.2, Short Term Payment Plans - Accounts Management, AM, Employees, IPU 21U1275 issued 11-18-2021 Deleted this subsection and renumbered subsequent subsections.
IRM 5.19.1.2.6.2.2, Short Term Payment Plans - Field Assistance, FA, Employees, IPU 20U1187 issued 11-02-2020 Revised label and table in paragraph (2) for clarity and changed number of allowable days for short term payment plan to 180. Converted note under table to new paragraph (3), and added bullets to address situations that don’t meet required criteria.
IRM 5.19.1.2.6.2.2, Short Term Payment Plans - Field Assistance, FA, Employees, IPU 21U0184 issued 02-02-2021 Deleted duplicate content from second column of table under paragraph (2).
IRM 5.19.1.2.6.2.2, Short Term Payment Plans - Field Assistance, FA, Employees, IPU 21U1096 issued 09-14-2021 Revised IRM reference under first bullet of paragraph (3) to new subsection for FA employees.
IRM 5.19.1.2.6.2.3, Short Term Payment Plans - ACS, ACSS and CSCO Employees, IPU 20U1187 issued 11-02-2020 Revised label in paragraph (2) and tables in paragraphs (2) and (3) for clarity, and changed number of allowable days for short term payment plan to 180. Converted notes under tables in paragraphs (2) and (3) to new paragraph (4), and added bullets to address situations that don’t meet required criteria.
IRM 5.19.1.2.6.2.3, Short Term Payment Plans - ACS, ACSS and CSCO Employees, IPU 21U0184 issued 02-02-2021 Revised title to remove ACS and ACSS. Revised exception under paragraph (1) to a reminder. Revised guidance in table under paragraphs (1) and (2) first column and deleted duplicate content in second column. Added reminder and reference under paragraphs (1) and (2) table.
IRM 5.19.1.2.6.2.3, Short Term Payment Plans - CSCO Employees, IPU 21U1096 issued 09-14-2021 Revised IRM reference under first bullet of paragraph (4) to new subsection for CSCO employees.
IRM 5.19.1.2.6.2.4, Short Term Payment Plans - ACS and ACSS Employees, IPU 21U0184 issued 02-02-2021 Inserted new subsection with Short Term Payment Plans guidance with revised case processing authority levels for ACS and ACSS employees.
IRM 5.19.1.2.6.2.4, Short Term Payment Plans - ACS and ACSS Employees, IPU 21U1096 issued 09-14-2021 Revised IRM reference under first bullet of paragraph (4) to new subsection for ACS and ACSS employees.
IRM 5.19.1.2.6.3, Installment Agreements, IPU 21U0184 issued 02-02-2021 Revised existing reference and added reference to bullet list under paragraph (1) for new subsection 5.19.1.2.6.3.5, Installment Agreements - ACS and ACSS Employees.
IRM 5.19.1.2.6.3, Installment Agreements, IPU 21U1096 issued 09-14-2021 Added In-Business Trust Fund (IBTF) under paragraph (1), now applicable to all employees, since AM is no longer included as a primary stakeholder due to balance due call routing. Deleted AM reference and IBTF under paragraph (2).
IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, IPU 20U1187 issued 11-02-2020 Revised second bullet and table under paragraph (3) for clarity.
IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees, IPU 21U1096 issued 09-14-2021 Revised paragraph (3): third bullet to clarify BMF Non-Trust Fund tax. Added new paragraph (4) for IBTF agreements since it is applicable to all employees.
IRM 5.19.1.2.6.3.2 Installment Agreements - Accounts Management, AM, Employees, IPU 20U1187 issued 11-02-2020 Added reference to paragraphs (2) through (4) and deleted paragraph (6).
IRM 5.19.1.2.6.3.2 Installment Agreements - Accounts Management, AM, Employees, IPU 21U1096 issued 09-14-2021 Deleted AM guidance as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.6.3, Installment Agreements - Accounts Management, AM, Employees, IPU 21U1275 issued 11-18-2021 Deleted this subsection and renumbered subsequent subsections.
IRM 5.19.1.2.6.3.3 Installment Agreements - Field Assistance, FA, Employees, IPU 20U1187 issued 11-02-2020 Revised format of first column of tables for clarity. Converted Notes under tables to new paragraph (7).
IRM 5.19.1.2.6.3.3 Installment Agreements - Field Assistance, FA, Employees, IPU 21U1096 issued 09-14-2021 Deleted paragraph (3) as Expanded IAs are no longer applicable. Deleted paragraph (6) and consolidated to IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees. Revised IRM reference under paragraph (7) to new subsection for FA employees.
IRM 5.19.1.2.6.3.4, Installment Agreements - ACS, ACSS and CSCO Employees, IPU 20U1187 issued 11-02-2020 Revised format of first column of tables for clarity. Converted Notes under tables to new paragraph (7).
IRM 5.19.1.2.6.3.4, Installment Agreements - ACS, ACSS and CSCO Employees, IPU 21U0184 issued 02-02-2021 Revised title to remove ACS and ACSS. Added reminder under paragraph (1) that FERDI accounts are handled by specific ACS call sites. Deleted exception under paragraphs (4) and (5) as not applicable.
IRM 5.19.1.2.6.3.4, Installment Agreements - CSCO Employees, IPU 21U1096 issued 09-14-2021 Deleted paragraph (3) as Expanded IAs are no longer applicable. Deleted paragraph (6) and consolidated to IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees. Revised IRM reference under paragraph (7) to new subsection for CSCO employees.
IRM 5.19.1.2.6.3.5, Installment Agreements - ACS and ACSS Employees, IPU 21U0184 issued 02-02-2021 Inserted new subsection with Installment Agreements guidance with revised case processing authority levels for ACS and ACSS employees.
IRM 5.19.1.2.6.3.5, Installment Agreements - ACS and ACSS Employees, IPU 21U1096 issued 09-14-2021 Added a third column to table under paragraph (2) to include SIA over $25,000 criteria for the different entity types. Deleted paragraph (3) as Expanded IAs are no longer applicable. Revised heading and added a third column to the table under paragraph (4) to include NSIA criteria for the different entity types. Added a third column to table under paragraph (5) to include PPIA criteria for the different entity types. Deleted paragraph (6) and consolidated to IRM 5.19.1.2.6.3.1, Installment Agreements - All Employees. Revised IRM reference under paragraph (7) to new subsection for CSCO employees.
IRM 5.19.1.2.6.4, Financial Analysis, Verification and Substantiation, IPU 21U1096 issued 09-14-2021 Deleted exception under paragraph (2) for AM employees as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.6.4.1, Financial Analysis, Verification and Substantiation - All Employees, IPU 20U1187 issued 11-02-2020 Revised the first column title of the table under paragraph (1).
IRM 5.19.1.2.6.4.1, Financial Analysis, Verification and Substantiation - All Employees, IPU 21U0184 issued 02-02-2021 Revised first and second row of column one in table under paragraph (1) for consistency.
IRM 5.19.1.2.6.4.1, Financial Analysis, Verification and Substantiation - All Employees, IPU 21U1096 issued 09-14-2021 Deleted exception under paragraph (1) for AM employees as it is no longer applicable due to balance due call routing.
IRM 5.19.1.2.6.4.2, Financial Analysis, Verification and Substantiation - Field Assistance, FA, Employees, IPU 20U1187 issued 11-02-2020 Revised the first column title of the table under paragraphs (2), (4) and (5).
IRM 5.19.1.2.6.4.2, Financial Analysis, Verification and Substantiation - Field Assistance, FA, Employees, IPU 21U0184 issued 02-02-2021 Deleted BMF from paragraph (2) heading for consistency.
IRM 5.19.1.2.6.4.3, Financial Analysis, Verification and Substantiation - ACS, ACSS and CSCO Employees, IPU 20U1187 issued 11-02-2020 Revised the first column title of the table under paragraphs (2), (4) and (5).
IRM 5.19.1.2.6.4.3, Financial Analysis, Verification and Substantiation - ACS, ACSS and CSCO Employees, IPU 21U0184 issued 02-02-2021 Revised title to remove ACS and ACSS. Deleted Exception under paragraphs (4) and (5) as not applicable.
IRM 5.19.1.2.6.4.4, Financial Analysis, Verification and Substantiation - ACS and ACSS Employees, IPU 21U0184 issued 02-02-2021 Inserted new subsection with Financial Analysis, Verification and Substantiation guidance with revised case processing authority levels for ACS and ACSS employees.
IRM 5.19.1.2.6.4.4, Financial Analysis, Verification and Substantiation - ACS and ACSS Employees, IPU 21U1096 issued 09-14-2021 Added a third column to table under paragraphs (2), (4) and (5) to include financial analysis requirements for the different entity types. Deleted paragraph (3) as Expanded IAs are no longer applicable.
IRM 5.19.1.2.7, Ways to Submit Payments, IPU 20U1187 issued 11-02-2020 Revised title of IRM reference: IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order.
IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order, IPU 20U1187 issued 11-02-2020 Changed title to Taxpayer Responsibilities - When Submitting Payments by Check or Money Order. Converted exceptions into table under paragraph (2) for payment annotation.
IRM 5.19.1.2.8, Mandated IAT Tools, IPU 20U1187 issued 11-02-2020 Updated table in paragraph (8) to add exception and hyperlink to IRM 21.3.5.4.2.1.1, Preparing an e-4442/4442.
IRM 5.19.1.2.8, Mandated IAT Tools, IPU 21U1096 issued 09-14-2021 Deleted paragraph (6) for AM employees as it is no longer applicable due to balance due call routing.
IRM 5.19.1.3, Referrals or Redirect, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (1) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.3.1, Referrals to Manager - All Employees, IPU 21U1096 issued 09-14-2021 Deleted guidance for AM employees under paragraph (3) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.3.2.1.1, ACS Transfer Information, IPU 20U1187 issued 11-02-2020 Revised paragraphs (2) and (3) for clarity, based on method of contact.
IRM 5.19.1.3.2.1.1, ACS Transfer Information, IPU 21U0184 issued 02-02-2021 Added reminder under paragraph (1) for CSCO employees. Added reference to paragraph (3) for Transfer PIN guidance.
IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS), IPU 20U1187 issued 11-02-2020 Revised paragraph (1) to clarify when taxpayers may receive assistance from TAS..
IRM 5.19.1.3.2.3.1, Low Income Taxpayer Clinics (LITCs), IPU 20U1187 issued 11-02-2020 Added new subsection to provide information for LITCs.
IRM 5.19.1.3.3, Referrals and Redirect for AM Employees, IPU 20U1187 issued 11-02-2020 Inserted three new rows in table under paragraph (4) to provide instructions for requests to change existing out of scope IAs.
IRM 5.19.1.3.3, Referrals and Redirect for AM Employees, IPU 21U1096 issued 09-14-2021 Deleted guidance for AM employees as it is no longer applicable due to balance due call routing.
IRM 5.19.1.3.3, Referrals and Redirect for AM Employees, IPU 21U1275 issued 11-18-2021 Deleted this subsection and renumbered subsequent subsections.
IRM 5.19.1.3.5, For All ACS Employees, IPU 21U0901 issued 07-01-2021 Revised paragraph (1) to update NMF toll free number. Added exception under paragraph (2) for SCP employees.
IRM 5.19.1.3.4, For All ACS Employees, IPU 21U1275 issued 11-18-2021 Revised Exception under paragraph (2) to spell out SCP acronym.
IRM 5.19.1.3.5.1, Multilingual Services, IPU 20U1187 issued 11-02-2020 Added exception for SCP employees under paragraph (3).
IRM 5.19.1.3.5.1, Multilingual Services, IPU 21U0184 issued 02-02-2021 Revised paragraph (3) from non-English speaking to limited English proficient which aligns with the IRS Multilingual Initiatives.
IRM 5.19.1.3.4.1, Multilingual Services, IPU 21U1275 issued 11-18-2021 Revised Exception under paragraph (3)(a) to spell out SCP acronym.
IRM 5.19.1.3.4.1, Multilingual Services, IPU 22U0551 issued 04-27-2022 Added Exception under paragraph (3) for ACS assistors staffing the ACS International line.
IRM 5.19.1.3.5.2, Tax Law Inquiry, IPU 21U1096 issued 09-14-2021 Deleted paragraphs (1) and (2) since AM answers in scope tax law inquiries year-round. Added other in scope tax law inquiries handled by AM under paragraph (3). Revised paragraphs (4) and (5) since AM answers in scope tax law inquiries year-round. Revised paragraph (6) to add references with additional information for out of scope tax law inquiries.
IRM 5.19.1.3.5.2.1, Tax Law Inquiry Topic is Handled by AM , IPU 21U0435 issued 03-19-2021 Revised table under paragraph (1) to include UCCE for Spanish speaking taxpayers.
IRM 5.19.1.3.5.2.1, Tax Law Inquiry Topic is Handled by AM , IPU 21U1096 issued 09-14-2021 Revised paragraph (1) since AM answers in scope tax law inquiries year-round.
IRM 5.19.1.3.5.2.2, Tax Law Inquiry Topic is NOT Handled by AM and TP has Internet Access, IPU 21U1096 issued 09-14-2021 Revised paragraph (1) since AM answers in scope tax law inquiries year-round. Deleted 3rd bullet under paragraph (2) as it is no longer available.
IRM 5.19.1.3.5.2.3, Tax Law Inquiry Topic is NOT Handled by AM and Taxpayer does NOT have Internet Access, IPU 20U1187 issued 11-02-2020 Removed references to Tele-Tax and added the phone number for Tax Forms and Publications as a referral source. Deleted paragraph (2).
IRM 5.19.1.3.5.2.3, Tax Law Inquiry Topic is NOT Handled by AM and Taxpayer does NOT have Internet Access, IPU 21U1096 issued 09-14-2021 Revised paragraph (1) since AM answers in scope tax law inquiries year-round.
IRM 5.19.1.3.5.3.7, Special Compliance Personnel (SCP) Calls, IPU 21U0435 issued 03-19-2021 Revised paragraph (3) to include hours of operation for SCP. Added Note under paragraph (3) with toll free number for SCP.
IRM 5.19.1.3.6, For Other Account Issues Requiring Referrals or Redirect, IPU 21U0184 issued 02-02-2021 Revised paragraph (9) to refer the appropriate function. Deleted reminder under paragraph (9) as no longer applicable.
IRM 5.19.1.4.1, Account Actions on Referral/Redirects, IPU 20U1187 issued 11-02-2020 Deleted last sentence in paragraph (2). Revised examples in paragraph (8)(b) to adhere to fictionalizing guidelines. Updated CC STAUP parameters throughout.
IRM 5.19.1.4.1, Account Actions on Referral/Redirects, IPU 21U0184 issued 02-02-2021 Added reminder under paragraph (1). Revised ACS & ACSS employees threshold. Revised paragraph (4) and deleted Exception as no longer applicable. Deleted first column of tables under paragraphs (4 thru 6). Revised guidance in last column of tables under paragraphs (4 thru 6) based on revised ACS/ACSS case processing authority levels and restructured for readability. Updated CC STAUP parameters throughout.
IRM 5.19.1.4.1, Account Actions on Referral/Redirects, IPU 21U1096 issued 09-14-2021 Deleted paragraphs (4) through (6) and inserted into a new subsection for each functional area. Deleted paragraph (7) containing AM employee guidance as it is no longer applicable due to balance due call routing. Added new paragraph (13) to list new subsections for account actions on referral/redirects specific to each functional area.
IRM 5.19.1.4.1.1, Account Actions on Referral/Redirects - ACS and ACSS Employees, IPU 21U1096 issued 09-14-2021 Inserted new referral/redirect subsection specific for ACS/ACSS employees.
IRM 5.19.1.4.1.1, Account Actions on Referral/Redirects - ACS and ACSS Employees, IPU 22U0968 issued 09-22-2022 Added guidance to obtain lead/manager approval and parameters when reassigning cases TOI7.
IRM 5.19.1.4.1.2, Account Actions on Referral/Redirects - CSCO Employees, IPU 21U1096 issued 09-14-2021 Inserted new referral/redirect subsection specific for CSCO employees.
IRM 5.19.1.4.1.2, Account Actions on Referral/Redirects - CSCO Employees, IPU 22U0551 issued 04-27-2022 Revised second Note under paragraph (1) to correct IRM reference.
IRM 5.19.1.4.1.3, Account Actions on Referral/Redirects - FA Employees, IPU 21U1096 issued 09-14-2021 Inserted new referral/redirect subsection specific for FA employees.
IRM 5.19.1.4.2, Taxpayer Information, IPU 21U1096 issued 09-14-2021 Deleted two exceptions for AM employees under paragraph (3) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.4.3, Determine Correct Tax Liability, IPU 20U1187 issued 11-02-2020 Added additional references for Audit Reconsiderations.
IRM 5.19.1.4.3.3, ACS Procedures for Accessing CEAS on Closed Examination Cases, IPU 20U1187 issued 11-02-2020 Inserted new subsection with procedures for accessing CEAS/RGS for ACS employees with access.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 20U1187 issued 11-02-2020 Added an instruction in paragraph (1). Added exception under tables in paragraphs (4) and (5) to address 2019 tax year processing delays.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 21U0435 issued 03-19-2021 Revised exception under tables in paragraphs (4) and (5) to address ongoing 2019 tax year processing delays.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 21U0901 issued 07-01-2021 Added an exception under paragraph (3) to allow granting an IA when 2019 return processing delays exist. Revised exception under paragraphs (4) and (5) to allow granting an IA when 2020 return processing delays exist. Revised paragraph (7) to provide clarification where to send return delinquencies.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 21U1096 issued 09-14-2021 Deleted exception for AM employees under paragraph (3) as it is no longer applicable due to balance due call routing. Revised Exception under paragraph (4) to address ongoing 2020 tax year processing delays.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 21U1275 issued 11-18-2021 Deleted exception under paragraph (3) as it is no longer applicable.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 21U1342 issued 12-15-2021 Revised exception under tables in paragraphs (4) and (5) to address ongoing 2020 tax year processing delays.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 22U0551 issued 04-27-2022 Revised exception under tables in paragraphs (4) and (5) to address ongoing 2020 and 2021 tax year processing delays.
IRM 5.19.1.4.4.1, Full Compliance Check, IPU 22U0968 issued 09-22-2022 Added IDRS research to paragraph (2) for instances when AMS cannot be documented. Revised exception under tables in paragraphs (4) and (5) to address ongoing 2020 and 2021 tax year processing delays.
IRM 5.19.1.4.4.1.1, Express Filing Compliance Check, IPU 20U1187 issued 11-02-2020 Revised Note in paragraphs (2) and (4) to remove the last section of the last sentence relating to the age of unfiled tax returns.
IRM 5.19.1.4.4.1.2, Express Filing Compliance Check for Automated Tools and Programs, IPU 21U1096 issued 09-14-2021 Revised paragraph (3) to reflect correct OPA look back period for unfiled returns.
IRM 5.19.1.4.4.2, Balance Due Taxpayer Education (Cause and Cure), IPU 22U0968 issued 09-22-2022 Added AMS and IDRS to Note under paragraph (1) for instances when AMS cannot be documented.
IRM 5.19.1.4.4.3, Balance Due Taxpayer Education (Cause and Cure), IPU 20U1187 issued 11-02-2020 Revised the first and second rows of table under paragraph (5) to update the language referring to recalculating the correct withholding.
IRM 5.19.1.4.5, Balance Due Collection Mail Procedures, IPU 20U1187 issued 11-02-2020 Deleted paragraphs (2) through (5) and following subsection to reflect that "First Read" procedures are no longer used. Updated paragraph (1) to include hyperlink to IRM 5.19.16.5, SBSE Fast Scan Procedures Overview, where SBSE Fast Scan procedures are located.
IRM 5.19.1.5, Balance Due Special Considerations, IPU 21U0901 issued 07-01-2021 Added bullet for new CSCO Manual Refund Processing subsection.
IRM 5.19.1.5.1.1, NMF Notice Responses, IPU 20U1187 issued 11-02-2020 Revised number of allowable days for short term payment plan to 180.
IRM 5.19.1.5.1.1, NMF Notice Responses, IPU 21U0901 issued 07-01-2021 Revised paragraph (1) to update NMF toll free number.
IRM 5.19.1.5.1.1, NMF Notice Responses, IPU 21U1275 issued 11-18-2021 Revised paragraph (1) to include NMF Non-Toll free number.
IRM 5.19.1.5.1.3, NMF Adjustment File, IPU 20U1187 issued 11-02-2020 Revised language referring to joint taxpayers as husband and wife to that of primary and secondary.
IRM 5.19.1.5.2.1, Contacts Regarding Insolvency Issues, IPU 21U0435 issued 03-19-2021 Revised paragraph (2) to clarify guidance on IA requests for post petition liabilities. Added Caution under paragraph (2) that IA requests for post petition liabilities are non processable and added IRM reference.
IRM 5.19.1.5.2.1.2, Bankruptcy Filed, IPU 21U1096 issued 09-14-2021 Deleted AM reference in note under paragraph (1) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.2.1.3, Will File Bankruptcy, IPU 21U1096 issued 09-14-2021 Deleted exception for AM employees under paragraph (2) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.3, Deceased Taxpayers, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameters throughout.
IRM 5.19.1.5.3, Deceased Taxpayers, IPU 21U1096 issued 09-14-2021 Deleted exception for AM employees under table of paragraph (1)(f) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.3.1, Deceased Taxpayer - Balance Due Actions, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameter under paragraph (1)(b).
IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes, IPU 20U1187 issued 11-02-2020 Revised table in paragraph (1) to adhere to fictionalizing guidelines. Added reference to paragraph (2)(a).
IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes, IPU 21U0184 issued 02-02-2021 Added reference to paragraph (1).
IRM 5.19.1.5.4, TFRP Issues, IPU 20U1187 issued 11-02-202 Removed routing information to TFRP liaison and replaced with a hyperlink to current liaison information.
IRM 5.19.1.5.8, Disaster/Emergency Relief, IPU 20U1187 issued 11-02-2020 Moved paragraph (3) to paragraph (4). Revised paragraph (11), including inserting a new table to discuss disaster processing for IAs.
IRM 5.19.1.5.8, Disaster/Emergency Relief, IPU 21U1096 issued 09-14-2021 Deleted AM reference in table under paragraph (10) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.10, Tax Court Cases, IPU 21U0184 issued 02-02-2021 Revised reference in Note under paragraph (2).
IRM 5.19.1.5.13, Criminal Investigation Division Indicators (CID) on Balance Due Cases, IPU 21U0184 issued 02-02-2021 Revised reference under paragraph (1).
IRM 5.19.1.5.18, Innocent Spouse, IPU 21U1096 issued 09-14-2021 Deleted second reminder for AM employees under paragraph (3) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.21.2, Private Collection Agencies, IPU 21U1096 issued 09-14-2021 Revised private collection agencies (PCA) under paragraph (1) to reflect current PCAs.
IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification, IPU 21U1096 issued 09-14-2021 Revised private debt collection (PDC) ID numbers in table under paragraph (3) to reflect new private collection agency.
IRM 5.19.1.5.21.3, Private Debt Collection Criteria, IPU 21U0184 issued 02-02-2021 Revised third bullet under paragraph (1) to comply with changes to the Taxpayer First Act (TFA).
IRM 5.19.1.5.21.3.1, Legislative Exclusions to Private Debt Collection Criteria, IPU 21U0184 issued 02-02-2021 Added two exclusions under paragraph (1) to comply with changes to the TFA.
IRM 5.19.1.5.21.4, AM, ACS and FA Taxpayer Contacts on Private Debt Collection Accounts, IPU 21U0184 issued 02-02-2021 Added note to second column of third row of table under paragraph (3) explaining Private Collection Agencies refer to Installment Agreements as Payment Arrangements.
IRM 5.19.1.5.21.4, AM, ACS and FA Taxpayer Contacts on Private Debt Collection Accounts, IPU 21U0901 issued 07-01-2021 Added note to TIGTA after hours contact information in table under paragraphs (2) and (3).
IRM 5.19.1.5.21.4, AM, ACS and FA Taxpayer Contacts on Private Debt Collection Accounts, IPU 21U1096 issued 09-14-2021 Deleted AM from subsection title as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.21.5, ACSS and CSCO Correspondence on Private Debt Collection Accounts, IPU 21U0184 issued 02-02-2021 Revised references from Installment Agreement (IA) to Payment Arrangements (PA).
IRM 5.19.1.5.21.5, ACSS and CSCO Correspondence on Private Debt Collection Accounts, IPU 21U1096 issued 09-14-2021 Deleted AM reference in exception under paragraph (2) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.21.6, Installment Agreements Granted by Private Collection Agencies, IPU 21U0184 issued 02-02-2021 Revised title to Payment Arrangements (PA) Granted by Private Collection Agencies.
IRM 5.19.1.5.21.6, Installment Agreements Granted by Private Collection Agencies, IPU 21U1096 issued 09-14-2021 Deleted AM reference in exception under paragraph (5) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.5.21.6, Payment Arrangements Granted by Private Collection Agencies, IPU 21U1275 issued 11-18-2021 Added new paragraph (6) to provide referral instructions for PCA payment arrangements that have ended.
IRM 5.19.1.5.23, CSCO Manual Refund Processing, IPU 21U0901 issued 07-01-2021 Insert new subsection for CSCO manual refund processing procedures.
IRM 5.19.1.5.24, Taxpayer Contact Regarding Letter 3064C, Settlement Notice for Deferred Social Security, IPU 21U1096 issued 09-14-2021 Insert new subsection for responding to taxpayer contact regarding Letter 3064C, Settlement Notice for Deferred Social Security.
IRM 5.19.1.5.24, Taxpayer Contact Regarding Letter 3064C, Settlement Notice for Deferred Social Security, IPU 21U1275 issued 11-18-2021 Revised title of subsection to be more inclusive of various notices for deferred social security tax. Revised paragraphs (1) and (2) to include other notices for deferred social security tax. Converted guidance under paragraph (3) to an If... Then... table to add guidance for CP 56V and CP 256V. Added Note under paragraphs (8) and (10) table for taxpayers who disagree with the balance due.
IRM 5.19.1.6, Methods of Payment, IPU 20U1187 issued 11-02-2020 Revised number of allowable days for short term payment plan to 180, throughout.
IRM 5.19.1.6.1, Taxpayer Refuses To Pay, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameter in table under paragraph (1).
IRM 5.19.1.6.2, Can Full Pay Balance Due Now (Payoff), IPU 20U1187 issued 11-02-2020 Added exception for FA employees under paragraph (1) and revised number of allowable days for short term payment plan to 180 in paragraph (4).
IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days, IPU 20U1187 issued 11-02-2020 Revised number of allowable days for short term payment plan to 180 to title and content throughout. Removed Note and Example under paragraph (1) and incorporated into paragraph (5). Updated Caution under paragraph (9).
IRM 5.19.1.6.3, Short Term Payment Plan Within 120 Days, IPU 21U0184 issued 02-02-2021 Revised example under paragraph (5) for clarity. Revised ACS literals in last column, third row of table under paragraph (14) example.
IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days, IPU 21U1096 issued 09-14-2021 Deleted AM guidance in table under paragraph (1) and references throughout as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4, Installment Agreements (IAs), IPU 20U1187 issued 11-02-2020 Added exception to table under paragraph (10)(c), and paragraph (12)(c). Updated paragraph (13) and added a note to paragraph (13)(b).
IRM 5.19.1.6.4, Installment Agreements (IAs), IPU 21U0184 issued 02-02-2021 Added new guidance to table under paragraph (12)(a) for ACS and ACSS employees with revised case processing authority levels.
IRM 5.19.1.6.4, Installment Agreements (IAs), IPU 21U1096 issued 09-14-2021 Deleted paragraph (11) as expanded IAs are no longer applicable. Deleted AM reference under paragraph (14) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4, Installment Agreements (IAs), IPU 21U1275 issued 11-18-2021 Added caution under paragraph (2) for IA requests from taxpayers who have had their PCA payment arrangement end.
IRM 5.19.1.6.4.1, Determining Appropriate IA, IPU 20U1187 issued 11-02-2020 Removed exception from table under paragraph (2). Added exception to paragraph (4).
IRM 5.19.1.6.4.1, Determining Appropriate IA, IPU 21U0184 issued 02-02-2021 Revised third thru fifth row, first column of table under paragraph (3) to separate case processing authority level for CSCO and ACS/ACSS employees. Added reference to new subsection for ACS and ACSS employees.
IRM 5.19.1.6.4.1, Determining Appropriate IA, IPU 21U1096 issued 09-14-2021 Deleted AM employee references throughout as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, IPU 21U1096 issued 09-14-2021 Deleted paragraph (2) containing AM employee guidance as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.2.1, Lump Sum Payment for IBTF Express ONLY, IPU 21U1096 issued 09-14-2021 Deleted AM employee guidance under paragraph (2) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.3, IA Requirements - BMF Non-Trust Fund, IPU 21U1096 issued 09-14-2021 Changed title to indicate BMF Non-Trust Fund. Deleted AM reference as it is no longer applicable due to balance due call routing and clarified guidance under paragraph (3).
IRM 5.19.1.6.4.3, IA Requirements - BMF Non-Trust Fund, IPU 22U0968 issued 09-22-2022 Revised IRM references and added parameter when reassigning cases TOI7.
IRM 5.19.1.6.4.4, IMF/BMF Related Accounts, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameter under paragraph (2)(d).
IRM 5.19.1.6.4.4, IMF/BMF Related Accounts, IPU 22U0968 issued 09-22-2022 Revised IRM references and added parameter when reassigning cases TOI7.
IRM 5.19.1.6.4.5, Account Statuses Affecting IAs, IPU 20U1187 issued 11-02-2020 Revised and reorganized paragraph (8), added guidance in paragraphs (a), (b), (c) and (e) to clarify instructions for active/inactive modules. Added new paragraph (d).
IRM 5.19.1.6.4.5, Account Statuses Affecting IAs, IPU 21U1096 issued 09-14-2021 Inserted other Forms and MFT's considered Trust Fund returns to table under paragraph (5), per IRM 5.7.3.1.1.
IRM 5.19.1.6.4.5, Account Statuses Affecting IAs, IPU 22U0551 issued 04-27-2022 Deleted reference to obsolete Insolvency (Bankruptcy) Tool under paragraph (2).
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, IPU 20U1187 issued 11-02-2020 Revised title of IRM reference: IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order, to last bullet under paragraph (1). Revised number of allowable days for short term payment plan to 180 to paragraph in table under paragraph (11).
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, IPU 21U1096 issued 09-14-2021 Revised table under paragraph (11) to include IAs reinstated after an OIC is rejected, returned, withdrawn, or terminated. Removed paragraph (13) and significantly revised paragraph (14) to move Form 13844, Application for Reduced User Fee for Installment Agreements, guidance to a new subsection.
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, IPU 21U1275 issued 11-18-2021 Added Note in table under paragraph (5) to indicate a change to the OPA IA originator user fee beginning January 2022.
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, IPU 22U0551 issued 04-27-2022 Revised content and deleted Note in table under paragraph (5) to include a change to the OPA IA originator user fee beginning January 9, 2022.
IRM 5.19.1.6.4.6, IA Payment Methods and User Fees (UF) Overview, IPU 22U0968 issued 09-22-2022 Revised paragraph (1) to reflect change from IRS PayNearMe to IRS VanillaDirect.
IRM 5.19.1.6.4.6.5, Processing Form 13844, Application for Reduced User Fee for Installment Agreements (KCSC ACSS Only), IPU 21U1096 issued 09-14-2021 Added new subsection that provides guidance to KCSC ACSS employees who process Form 13844, Application for Reduced User Fee for Installment Agreements.
IRM 5.19.1.6.4.7, Pending IA Criteria, IPU 20U1187 issued 11-02-2020 Revised reference under paragraph (2), added guidance in paragraphs (e) and (f), and added Caution.
IRM 5.19.1.6.4.7.2, Requests Meeting Pending IA Criteria, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameters throughout in table under paragraph (3).
IRM 5.19.1.6.4.7.2.1, Solely to Delay, IPU 20U1187 issued 11-02-2020 Added new subsection moved from IRM 5.19.1.6.4.9, IA Rejection Criteria.
IRM 5.19.1.6.4.8, IA Managerial Approval, IPU 21U0901 issued 07-01-2021 Revised reference under paragraph (3). Revised paragraph (5) to specify parameter for employee follow up.
IRM 5.19.1.6.4.9, IA Rejection Criteria, IPU 20U1187 issued 11-02-2020 Deleted and moved paragraphs (3) and (4) to new subsection IRM 5.19.1.6.4.7.2.1, Solely to Delay.
IRM 5.19.1.6.4.9, IA Rejection Criteria, IPU 21U0901 issued 07-01-2021 Revised example under 9th bullet of paragraph (2).
IRM 5.19.1.6.4.10, Proposal to Reject IA to Independent Review, IPU 20U1187 issued 11-02-2020 Added table to paragraph (4) to provide routing information of Form 12233, Request for Installment Agreement - Independent Review Prior to Rejection.
IRM 5.19.1.6.4.10, Proposal to Reject IA to Independent Review, IPU 22U0551 issued 04-27-2022 Revised table under paragraph (4) to include ACSS and CSCO to utilize SharePoint for forwarding referrals to Independent Reviewer.
IRM 5.19.1.6.4.10, Proposal to Reject IA to Independent Review, IPU 22U0968 issued 09-22-2022 Revised parameter when reassigning cases TOS5.
IRM 5.19.1.6.4.11, Rejected IA Suspense File, IPU 20U1187 issued 11-02-2020 Updated instructions in paragraph (7) and reference in paragraph (8)(c).
IRM 5.19.1.6.4.12, Input of IA, IPU 21U0184 issued 02-02-2021 Revised paragraph (3) with IDRS cycles for first payment scheduled.
IRM 5.19.1.6.4.13, DDIA, IPU 21U0184 issued 02-02-2021 Added reminder under paragraph (1). Revised references in table under paragraph (17).
IRM 5.19.1.6.4.13, DDIA, IPU 21U1096 issued 09-14-2021 Deleted AM reference as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.13, DDIA, IPU 22U0551 issued 04-27-2022 Revised paragraph (12) to align with DDIA retention local procedures guidance in IRM 5.19.1.8. Added Note in table under paragraph (17) to accept a faxed DDIA after the call.
IRM 5.19.1.6.4.13.1, DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, IPU 20U1187 issued 11-02-2020 Updated reference in paragraph (2).
IRM 5.19.1.6.4.13.1, DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, IPU 21U0901 issued 07-01-2021 Revised table under paragraph (6) to reflect additional OPA functionality.
IRM 5.19.1.6.4.13.1, DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, IPU 21U1096 issued 09-14-2021 Deleted AM reference as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.13.2, Taxpayer Problems With DDIA, IPU 21U0901 issued 07-01-2021 Revised table under paragraph (3)(b) to reflect additional OPA functionality.
IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement, IPU 21U1096 issued 09-14-2021 Deleted exception for AM employees in table under paragraph (2) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement, IPU 22U0968 issued 09-22-2022 Added case disposition guidance in last row of table under paragraph (2).
IRM 5.19.1.6.4.14.1, Input of PDIA, IPU 21U1096 issued 09-14-2021 Deleted exception for AM employees under paragraphs (1) and (2) as it is no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.16, IA Terms and Conditions, IPU 22U0968 issued 09-22-2022 Deleted step list under paragraph (7) and consolidated guidance under paragraph (7) with IA managerial approval IRM reference.
IRM 5.19.1.6.4.18, Payment Skips (Missed Payments), IPU 20U1187 issued 11-02-2020 Revised language in paragraph (1) to clarify missed payment processing.
IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs, IPU 20U1187 issued 11-02-2020 Added exception to paragraph (2). Revised number of allowable days for short term payment plan to 180 throughout.
IRM 5.19.1.6.4.19, Revision/Reinstatement of IAs, IPU 21U0184 issued 02-02-2021 Added note to third column, row eight, of table under paragraph (6) for erroneously defaulted IAs.
IRM 5.19.1.6.4.20, Adding New Liability to an Existing IA, IPU 21U1096 issued 09-14-2021 Deleted two exceptions for AM employees under paragraph (3) as they are no longer applicable due to balance due call routing.
IRM 5.19.1.6.4.21, VLSP, IPU 20U1187 issued 11-02-2020 Revised number of allowable days for short term payment plan to 180 in paragraph (1). Updated 1st and 2nd Notes under paragraph (5) for clarity.
IRM 5.19.1.6.5.1, PPIA Requirements, IPU 20U1187 issued 11-02-2020 Added reference to paragraph (1)(a).
IRM 5.19.1.6.5.2, Procedures for PPIA, IPU 20U1187 issued 11-02-2020 Revised both Examples in paragraph (4) for clarity.
IRM 5.19.1.6.5.2, Procedures for PPIA, IPU 21U1096 issued 09-14-2021 Revised paragraph (4) to provide clarification on the use of and calculation of the PPIA TFRO calculator.
IRM 5.19.1.6.5.2, Procedures for PPIA, IPU 22U0968 issued 09-22-2022 Added parameter when reassigning cases TOI7 and revised IRM reference under paragraph (5).
IRM 5.19.1.6.5.4, Two Year Review, IPU 21U0901 issued 07-01-2021 Revised reference under paragraph (1).
IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameters in table under paragraph (2)(f).
IRM 5.19.1.6.6, Manually Monitored Installment Agreement, MMIA, IPU 21U1096 issued 09-14-2021 Deleted AM reference under paragraph (3) as it is no longer applicable due to balance due call routing. Revised paragraphs (j), (k) and (l) under paragraph (3) to provide clarity of CCP referrals.
IRM 5.19.1.6.7, Mirroring Accounts, IPU 20U1187 issued 11-02-2020 Revised paragraph (2) to clarify requests for separate treatment. Reorganized and revised paragraph (3) for clarity of the mirroring process, and deleted repetitious content.
IRM 5.19.1.6.7.1, Front End Mirror Assessments Process for IA Closures, IPU 20U1187 issued 11-02-2020 Revised language in paragraph (3) referring to joint taxpayers as husband and wife to that of primary and secondary.
IRM 5.19.1.6.8, Online Payment Agreements (OPA), IPU 20U1187 issued 11-02-2020 Revised number of allowable days for short term payment plan to 180 in paragraph (1) note.
IRM 5.19.1.6.8, Online Payment Agreements (OPA), IPU 21U1275 issued 11-18-2021 Added planned OPA programming changes in January 2022 to allow short term payment plans up to 180 days under paragraph (1) Note. Added new paragraph (4) to include online account information.
IRM 5.19.1.6.8, Online Payment Agreements (OPA), IPU 22U0551 issued 04-27-2022 Deleted Note under paragraph (1) no longer applicable after OPA programming changes took effect January 9, 2022, to allow short term payment plans up to 180 days.
IRM 5.19.1.6.8.1, OPA Management Action Reports (MAR), IPU 21U1096 issued 09-14-2021 Revised paragraph (5) to include expansion of VBD acronym.
IRM 5.19.1.6.8.1, OPA Management Action Reports (MAR), IPU 22U0968 issued 09-22-2022 Deleted exception under paragraph (3) not applicable.
IRM 5.19.1.6.8.2, OPA User Fees, IPU 20U1187 issued 11-02-2020 Deleted text in table, second bullet under (b). Updated second note below table under paragraph (2) concerning DDIA revisions to reflect OPA programming enhancements.
IRM 5.19.1.6.8.2, OPA User Fees, IPU 21U0901 issued 07-01-2021 Deleted second note under paragraph (2) table as no longer applicable since OPA has additional IA revisions functionality.
IRM 5.19.1.6.8.2, OPA User Fees, IPU 21U1275 issued 11-18-2021 Added Note in table under paragraph (2) to indicate a change to the OPA IA originator user fee beginning January 2022.
IRM 5.19.1.6.8.2, OPA User Fees, IPU 22U0551 issued 04-27-2022 Deleted Note in table under paragraph (2) and incorporated into bullet.
IRM 5.19.1.6.8.3, Referring Taxpayers to OPA, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameters in paragraph (8).
IRM 5.19.1.6.8.3, Referring Taxpayers to OPA, IPU 21U1275 issued 11-18-2021 Revised guidance under paragraph (4) and deleted second note under paragraph (9) to align with the Secure Access Digital Identity (SADI) verification and authentication processing.
IRM 5.19.1.6.8.3.1, Taxpayer Problems With OPA, IPU 20U1187 issued 11-02-2020 Added reminder to table under paragraph (5) revising number of allowable days for short term payment plan to 180.
IRM 5.19.1.6.8.3.1, Taxpayer Problems With OPA, IPU 21U1275 issued 11-18-2021 Revised guidance in table under paragraph (4) to align with the Secure Access Digital Identity (SADI) verification and authentication processing. Revised reminder in first row of table under paragraph (5) to add planned OPA programming changes in January 2022 to allow short term payment plans up to 180 days.
IRM 5.19.1.6.8.3.1, Taxpayer Problems With OPA, IPU 22U0551 issued 04-27-2022 Deleted Reminder in table under paragraph (5) no longer applicable after OPA programming changes took effect January 9, 2022 to allow short term payment plans up to 180 days.
IRM 5.19.1.6.8.3.2, SCP Follow-up on OPA Referrals, IPU 21U0435 issued 03-19-2021 Revised LT24 to LT19 in second row of table to reflect the correct letter for SIAs.
IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection, IPU 20U1187 issued 11-02-2020 Updated reference in note under paragraph (2).
IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection, IPU 21U0184 issued 02-02-2021 Updated CC STAUP parameters throughout paragraph (7).
IRM 5.19.1.8, DDIA Monitoring Procedures, IPU 20U1187 issued 11-02-2020 Updated paragraph (5) to include hyperlinks.
IRM 5.19.1.8, DDIA Monitoring Procedures, IPU 22U0551 issued 04-27-2022 Updated paragraph (6) to add guidance for local procedures.
IRM 5.19.1.8.4, Perfecting DDIAs, IPU 20U1187 issued 11-02-2020 Updated row 6 of table under paragraph (3) to include reference for IA requests with a missing payment date.
IRM 5.19.1.8.6, Revising DDIAs, IPU 21U0184 issued 02-02-2021 Revised DDIA input cycles in table under paragraph (5), to align with IA input guidance.
IRM 5.19.1.8.6.1, Requests to Skip a Payment, IPU 20U1187 issued 11-02-2020 Changed title to Requests to Skip a Direct Debit Installment Agreement (DDIA) Payment.
Exhibit 5.19.1-1 Acronyms, Explanations and Command Codes for IRM 5.19.1, IPU 20U1187 issued 11-02-2020 Changed title to Acronyms and Explanations for IRM 5.19.1, updated acronym table, and moved Command Codes table to Exhibit 5.19.1-2, Command Codes for IRM 5.19.1.
Exhibit 5.19.1-1 Acronyms, Explanations and Command Codes for IRM 5.19.1, IPU 21U0184 issued 02-02-2021 Corrected title to Acronyms and Explanations for IRM 5.19.1. Added acronym and explanation for Payment Arrangement.
Exhibit 5.19.1-1 Acronyms, Explanations and Command Codes for IRM 5.19.1, IPU 21U1096 issued 09-14-2021 Revised AM definition to remove "granting IAs" as it is no longer applicable due to balance due call routing. Added new acronyms and explanation.
Exhibit 5.19.1-2, ACS OPA Call Flow, IPU 20U1187 issued 11-02-2020 Changed title to Command Codes for IRM 5.19.1, and added content moved from Exhibit 5.19.1-1.
Exhibit 5.19.1-3, ACS Call Flow, IPU 20U1187 issued 11-02-2020 Revised and reorganized first row of the first table, added references for International callers and those requiring a language interpreter other than Spanish, added references for when additional taxpayer authentication may be appropriate and a third party is authorized on a Form 8821. Revised second row of first table to update reference in paragraph (2) and hold time guidance.
Exhibit 5.19.1-3, ACS Call Flow, IPU 21U0184 issued 02-02-2021 Revised reference in last column of table under Path A, paragraph (b).
Exhibit 5.19.1-3, ACS Call Flow, IPU 21U1096 issued 09-14-2021 Revised IRM references throughout to reflect the correct title.
Exhibit 5.19.1-3, ACS Call Flow, IPU 21U1275 issued 11-18-2021 Revised paragraph (3) of second row under Corresponding Research/Actions column to add guidance to research for assignment to SCP.
Exhibit 5.19.1-3, ACS Call Flow, IPU 22U0968 issued 09-22-2022 Added introduction paragraph with the purpose of the call flow. Reorganized call flow guidance into six sections, each with a three-column table to improve readability and improve efficiency of call handling.
Exhibit 5.19.1-4, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA, IPU 20U1187 issued 11-02-2020 Changed the title to IDRS Input of Full Pay Agreements, 180 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA. Updated throughout to reflect change in Short Term Payment Plans from 120 to 180 days.
Exhibit 5.19.1-4, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAORG for AM/ACS/ACSS/CSCO/FA, IPU 21U1096 issued 09-14-2021 Revised title to remove AM as it is no longer applicable due to balance due call routing.
Exhibit 5.19.1-5, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA, IPU 20U1187 issued 11-02-2020 Changed the title to IDRS Input of Full Pay Agreements, 180 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA. Updated throughout to reflect change in Short Term Payment Plans from 120 to 180 days.
Exhibit 5.19.1-5, IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAREV for AM/ACS/ACSS/CSCO/FA, IPU 21U1096 issued 09-14-2021 Revised title to remove AM as it is no longer applicable due to balance due call routing.
Exhibit 5.19.1-6, IDRS Input of IAs, CC IAORG, IPU 20U1187 issued 11-02-2020 Updated first paragraph to reflect change in Short Term Payment Plans from 120 to 180 days. Updated paragraphs (12) and (23).
Exhibit 5.19.1-6, IDRS Input of IAs, CC IAORG, IPU 21U0184 issued 02-02-2021 Revised payment due cycles in paragraph (5), to align with IA input guidance.
Exhibit 5.19.1-7, IDRS Input of IAs, CC IAREV, IPU 20U1187 issued 11-02-2020 Updated first paragraph to reflect change in Short Term Payment Plans from 120 to 180 days. Updated paragraphs (13) and (24).
Exhibit 5.19.1-7, IDRS Input of IAs, CC IAREV, IPU 21U0184 issued 02-02-2021 Revised payment due cycles in paragraph (13), to align with IA input guidance.
Exhibit 5.19.1-8, IDRS Input of Pre-Assessed IAs and Full Pay Agreements, IPU 20U1187 issued 11-02-2020 Updated table in paragraph (16) to reflect change in Short Term Payment Plans from 120 to 180 days.
Exhibit 5.19.1-8, IDRS Input of Pre-Assessed IAs and Full Pay Agreements, IPU 21U0184 issued 02-02-2021 Revised payment due cycles in first row of table under paragraph (16), to align with IA input guidance.
Exhibit 5.19.1-9, ALNs, IPU 21U0184 issued 02-02-2021 Revised exception under last bullet of YY paragraph to add 91 as a value.
Exhibit 5.19.1-9, ALNs, IPU 21U1096 issued 09-14-2021 Deleted AM reference under 11th bullet as it is no longer applicable due to balance due call routing.
Exhibit 5.19.1-10, IA Originator Codes, IPU 21U1096 issued 09-14-2021 Added three (3) new IA originator codes.
Exhibit 5.19.1-11, IA User Fee Codes, IPU 20U1187 issued 11-02-2020 Updated first example to reflect change in Short Term Payment Plans from 120 to 180 days.
Exhibit 5.19.1-12, OPA Referral Criteria, IPU 20U1187 issued 11-02-2020 Inserted a new row to describe disabled accounts and updated the row concerning DDIA revisions to reflect OPA programming enhancements.
Exhibit 5.19.1-12, OPA Referral Criteria, IPU 21U0184 issued 02-02-2021 Added a row to the table, to preclude accounts assigned to a PCA from being referred to OPA.
Exhibit 5.19.1-12, OPA Referral Criteria, IPU 21U0901 issued 07-01-2021 Deleted DDIA revisions from table as it is no longer applicable due to OPA additional functionality.
Exhibit 5.19.1-12, OPA Referral Criteria, IPU 22U0968 issued 09-22-2022 Added exception to table for ITIN holders.
Exhibit 5.19.1-13, Balance Due Research Procedures for AM Employees, IPU 20U1187 issued 11-02-2020 Updated IRM references with their revised titles.
Exhibit 5.19.1-13, Balance Due Research Procedures for AM Employees, IPU 21U1096 issued 09-14-2021 Revised exhibit title from Balance Due Research for AM Employees to Installment Agreement Table, to reflect new exhibit content. Deleted AM guidance as it is no longer applicable due to balance due call routing. Insert new table to provide a summary of the various installment agreements.
Exhibit 5.19.1-13, Installment Agreement Table, IPU 22U0551 issued 04-27-2022 Revised table to clarify guidance.
Exhibit 5.19.1-14, Recommended AM Balance Due Call Flow, IPU 20U1187 issued 11-02-2020 Updated IRM reference with the revised title and "he/she" to "they" .
Exhibit 5.19.1-14, Recommended AM Balance Due Call Flow, IPU 21U1096 issued 09-14-2021 Deleted entire exhibit to remove AM guidance as it is no longer applicable due to balance due call routing.
Throughout, IPU 21U1275 issued 11-18-2021 Revised text for editorial changes, correct IRM references and updated broken links for consistency.
Throughout, IPU 22U0551 issued 04-27-2022 Revised text for editorial changes, correct IRM references and updated broken links for consistency.
Throughout Revised text for editorial changes, correct IRM references and updated broken links for consistency.

Effect on Other Documents

IRM 5.19.1 dated 11-30-2020 is superseded. The following IRM Procedural Updates (IPUs) have been incorporated into this IRM: IPU 20U1187, issued 11-02-2020, IPU 21U0184, issued 02-02-2021, IPU 21U0435, issued 03-19-2021, IPU 21U0901, issued 07-01-2021, IPU 21U1096, issued 09-14-2021, IPU 21U1275, issued 11/18/2021, IPU 21U1342, issued 12/15/2021, IPU 22U0551, issued 04/27/2022, IPU 22U0968, issued 09/22/2022.

Audience

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

Effective Date

(11-01-2022)

Kareem Williams
Director, Collection Policy
Small Business/Self Employed Division

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 trained and 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, SBSE.

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

  6. Primary Stakeholders:

    • ACS and ACSS employees

    • CSCO employees

    • 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.

    • 26 CFR 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 oversee 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

  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:

    List of Additional Resources
    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 20.1, Penalty Handbook
    IRM 20.2, Interest
    IRM 21.1, Accounts Management and Compliance Services Operations
    IRM 21.2, Systems and Research Programs
    IRM 21.5.5, Unpostables
    IRM 21.6, Individual Tax Returns
    IRM 21.7, Business Tax Returns and Non-Master File Accounts
    IRM 21.10, Quality Assurance
    IRM 25.27.1, Third Party Contact Program
    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

    • Compliance Electronic Guides - (Compliance e-Guides)

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 Internal Revenue Code provides taxpayers specific rights. The Taxpayer Bill of Rights (TBOR) groups these rights into ten (10) fundamental rights, which provide 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. 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. For additional information, see IRM 1.2.1.2.36, Policy Statement 1-236, Fairness and Integrity in Enforcement Selection, IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS), Pub 1, Your Rights As A Taxpayer, IRC 7803(a)(3), or the TBOR at IRS.govTaxpayer Bill of Rights.

  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 necessary to access the account. Review the account history to help the taxpayer resolve their liability.

    Exception:

    ACS employees are not required to access an account if it meets one of the conditions for a pre-disclosure transfer described in Exhibit 5.19.1-3, ACS Call Flow

    Reminder:

    It is important you are aware of the Master File (MF) and Collection Status Codes to determine whether you should work the account; 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. For Automated Collection System Support (ACSS) working correspondence, see the ACS Support e-Guide on SERP under the IRM Supplements tab for procedures in addressing all compliance issues.

  8. For Compliance Services Collection Operations (CSCO) working correspondence, see the CSCO e-Guide on SERP under the IRM Supplements tab for procedures in addressing all compliance issues.

  9. Written requests received in CSCO and 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:

    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 CSCO Operating Guidelines.)

  10. All "physical" work (including IAs) closed by individual employees, must be marked for disposal when work is completed.

    Exception:

    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.

    Exception:

    Electronic documents are not considered "physical" . Electronic documents include GII exception printouts.

  11. 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.

  12. An Automated Bot is a computer program, also known as a digital or virtual assistant. It can interpret and process user requests and give prompt, relevant answers, and can interact through voice, text, or user-driven guided menu picks. In December 2021, the IRS launched an Automated Chat Bot on the irs.gov “Payments” and “Additional Information on Payment Plans” web pages. An Automated Voice Bot was launched on several ACS and balance due toll free lines. These Automated Bots are offered in English and Spanish. They provide self-help options for taxpayers to resolve common collection issues including: How to make One-Time Payments, Answers to Frequently Asked Questions and Notice Clarification. Although most taxpayer interactions with the Bots are unauthenticated, authenticated Voice Bot options for qualified taxpayers to set up certain payment plans via self-service were deployed in June 2022 and additional self-service options are planned for deployment in the future.

    Note:

    Taxpayers who request to speak/chat with a live assistor will be placed in queue for English or Spanish ACS telephone or live text chat assistance. ACS assistors should continue to follow normal procedures throughout IRM 5.19.1 , Balance Due, and IRM 5.19.5.11, ACS Text Chat and ACS Chat Bot Overview, for telephone calls and text chats escalated from the Bot.

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.

  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.

Call Flow

  1. ACS Employees are required to follow Exhibit 5.19.1-3, ACS Call Flow.

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 5.19.5.4.13, ACS and Disclosure, for examples.
    Mailing and Faxing Tax Account Information See IRM 21.1.3.9, Mailing and Faxing Tax Account Information, IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information, IRM 21.2.3.5.5, Using Electronic Fax Services, and IRM 21.2.3.5.5.1, IRS Electronic Fax System.
    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 11.3.3.3, Disclosure to Third Parties Based Upon Taxpayer Request for Assistance. See IRM 11.3.3.4(1), Distinction Between Disclosure to Designees and the Conference and Practice Requirements. See IRM 11.3.3.4(2), Distinction Between Disclosure to Designees and the Conference and Practice Requirements. See IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication.

    Note:

    Refer to IRM 5.19.1.2.3.1, Instructions for Form 8821, Taxpayer Information Authorization.

    Oral Disclosure Consent See IRM 11.3.3.3.2, 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 and IRM 21.2.1.56(5), Deaf/Hard of Hearing (DHOH) Callers and TTY/TDD Equipment.
    Language or Sign Interpreter See IRM 11.3.2.3.2(2), Requirements for Verbal or Electronic Requests and IRM 21.2.1.56(5), Deaf/Hard of Hearing (DHOH) Callers and TTY/TDD Equipment.
    Checkbox Designee See IRM 11.3.3.3.2, 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 11.3.21.7, Disclosure by Certain Officers and Employees for Investigative Purposes - IRC 6103(k)(6) and IRM 11.3.21.14, Disclosure of Levies on Certain Government Payments - IRC 6103(k)(8).
    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 11.3.21.7, Disclosure by Certain Officers and Employees for Investigative Purposes - IRC 6103(k)(6) and IRM 11.3.21.14, Disclosure of Levies on Certain Government Payments - IRC 6103(k)(8).

    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 11.3.21.7, Disclosure by Certain Officers and Employees for Investigative Purposes - IRC 6103(k)(6) and IRM 11.3.21.14, Disclosure of Levies on Certain Government Payments - IRC 6103(k)(8).

    Note:

    Calculate and assess the restricted penalty and/or interest. See IRM 20.2.1.4, Normal and Restricted Interest, IRM 20.2.1.4.2, Manual Calculation of Interest, and IRM 21.5.6.4, Freeze Code Procedures, 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 11.3.2.4.14, 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. When responding to balance due inquiries, document the AMS narrative with the identity of the person initiating the inquiry. See IRM 5.19.1.2.4, Documenting Account Actions.

  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.

    • FA employees are required to use the IAT Disclosure tool to perform required and additional taxpayer authentication when the IRM requires it. See Exhibit 21.3.4-12, Field Assistance Mandated IAT Tools.

    • ACS employees have the option to use AMS or the IAT Disclosure tool to perform required and additional authentication.

      Exception:

      When transferring a call to or from a participating function, ACS employees are required to use IAT Disclosure tool to generate or validate a Transfer PIN, provided all requirements are met. See IRM 5.19.1.2.3.3 , Transfer Personal Identification Number (PIN) Generation, IRM 5.19.1.2.3.3.1 , Transfer Personal Identification Number (PIN) Acceptance, and IRM 5.19.1.2.8, Mandated IAT Tools.

  4. 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 all three (3) conditions shown in the following table are met:

    • Required Conditions Before Communicating With a Represented Taxpayer ...
      The taxpayer initiates the contact to resolve the issue on the account, and
      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 affected.

    Note:

    See IRM 11.3.3.2.1(5), General Requirements for Disclosure to Designee of Taxpayer.

  5. See IRM 5.19.1.2.3.2 , Additional Taxpayer Authentication, when additional taxpayer authentication is necessary.

  6. If you determine that the person with whom you are speaking is being coached with the answers to the disclosure probes, you must verify if the caller is the taxpayer or someone else calling on the taxpayer’s behalf. If the caller is not the taxpayer, ask to speak to the taxpayer.

    • If the taxpayer is available, complete the required disclosure probes with the taxpayer. Then, secure verbal consent from the taxpayer to discuss the matter with the third party caller.

    • If the taxpayer is not available, advise the caller you cannot disclose any information related to the taxpayer without proper authorization. You may answer any general questions they have concerning obtaining authorization before disconnecting the call.

    Reminder:

    IRS employees are authorized to accept a taxpayer's verbal consent to disclose return information to third parties assisting the taxpayer in resolving a tax matter. This consent may allow the third party to review return or account information for the periods specified by the taxpayer, but the third party is not authorized to act on behalf of the taxpayer (including resolving balance due cases). For additional information, see IRM 21.1.3.4, Other Third Party Inquiries, and IRM 11.3.3.3.2, Requirements for Oral Authorization.

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). See IRM 11.3.3.4, Distinction Between Disclosure to Designees and the Conference and Practice Requirements.

  2. Therefore, employees should not accept Form 8821, Tax Information Authorization, for balance due issues. 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 five (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 5.19.1.2.3 , 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 (4) below.

  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 as follows:

    1. IMF taxpayer:

      Language ... UCCE Extension ...
      English 1045
      Spanish 1021

    2. BMF taxpayer - Employment taxes only:

      Language ... UCCE Extension ...
      English 1025
      Spanish 1031

    3. BMF taxpayer - All other taxes:

      Language ... UCCE Extension ...
      English 1030
      Spanish 1031

  5. If the caller wants to resolve the taxpayer’s issue, inform the caller we can work with them if and when the taxpayer authorizes them to act on their behalf using Form 2848, Power of Attorney and Declaration of Representative.

    Exception:

    Do not accept Form 2848, Power of Attorney and Declaration of Representative, from unenrolled return preparers (designation Level H) as authority to represent taxpayers for balance due issues. Unenrolled return preparers (designation Level H) may submit Form 2848, Power of Attorney and Declaration of Representative, but have limited representation authority; that authority does not include representing their clients before Collection or Appeals functions. See IRM 21.3.7.5.6(3)(c), Unenrolled Return Preparer (Level H) Representative Research, Rejections and Processing. Advise unenrolled return preparer (designation Level H) callers to submit Form 2848, Power of Attorney and Declaration of Representative, to the appropriate CAF Unit. Please refer to IRM 21.3.7.1.6, Audience-Processing Site (CAF Function).

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).

    • 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.

    • Accounts involving ID Theft or open controls under IDT1, IDT3, IDT8, IDT9, MXEN, SCRM or SSA2. See IRM 21.1.3.2.3, Required Taxpayer Authentication.

    • Accounts with an MFT 32. See IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 25.25.6.6, Non Taxpayer Protection Program (TPP) Telephone Assistors Response to Taxpayers.

  3. Perform manual research to verify the caller’s responses.

  4. 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.

  5. There will be times when systemic issues may cause problems with the IAT Disclosure 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

Transfer Personal Identification Number (PIN) Generation
  1. ACS employees are required to use the IAT Disclosure tool to generate a four (4) digit transfer personal identification number (PIN) to the taxpayer if the call must be transferred for further action to a participating function, provided the TIN has been secured and requirements below are met. See Exhibit 5.19.1-3, ACS Call Flow.

    Exception:

    If the TIN is not secured, use of the IAT Disclosure toolis not required to generate a four (4) digit transfer PIN.

  2. Employees should refer to the Telephone Transfer Guide under the Taxpayer Authentication (Transfer) PIN to determine whether they will be transferring the taxpayer to a function that participates in the transfer PIN process. Use of the transfer PIN will help the taxpayer avoid repeating the full disclosure process with the next assistor(s) on a transferred call, while ensuring that appropriate disclosure procedures were followed.

  3. When you have completed required authentication (per IRM 5.19.1.2.3 , Disclosure Overview: Verifying Identity of Contact Party, and as appropriate, IRM 5.19.1.2.3.2 , Additional Taxpayer Authentication) and determine it is necessary to transfer the call to another assistor:

    1. Press the "Generate Transfer PIN" button located on the IAT Disclosure tool. This will cause the tool to create and display a four (4) digit transfer PIN.

    2. The IAT Disclosure tool will input a history item on CC ENMOD to display the transfer PIN number for the next assistor to verify after you transfer the phone call.

    3. Provide the transfer PIN to the taxpayer. Ask the taxpayer to repeat it back to you.

    4. Instruct the taxpayer to provide their name and TIN to the next assistor, and then to inform them of the four (4) digit transfer PIN.

    5. Explain that the transfer PIN is good only for this call, and any subsequent transfers that result from this call.

    6. Transfer the call to the appropriate application.

  4. The transfer PIN process is not valid for authentication done for any third party contact, including:

    • Power of Attorney (IRM 21.1.3.3, Third Party Authentication (POA/TIA/F706)),

    • Taxpayer Information Authorization (IRM 21.1.3.3, Third Party Authentication (POA/TIA/F706)),

    • Third Party Designee (IRM 21.1.3.3.1, Third Party Designee Authentication), or

    • Oral Disclosure Consent (IRM 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821).

  5. See IRM 21.1.3.2.5, Initial Authentication Transfer Procedures/Transfer PIN.

Transfer Personal Identification Number (PIN) Acceptance
  1. Taxpayers may inform an IRS assistor they have a four (4) digit transfer PIN provided by the previous IRS assistor. When this occurs, ACS assistors must ask for the:

    • Taxpayer’s name and TIN,

    • Transfer PIN,

    • Caller’s name, and

    • Purpose of the call.

    Caution:

    The Transfer PIN may only be used by taxpayers. If a third party attempts to use a Transfer PIN, do not accept it. Instead see paragraph (6) below.

  2. Input the taxpayer’s TIN into the IAT Disclosure tool. If you are able to verify the four (4) digit transfer PIN provided by the taxpayer on the IAT Disclosure tool, you are considered to have met full disclosure per IRM 21.1.3.2.3, Required Taxpayer Authentication, as well as IRM 21.1.3.2.4 , Additional Taxpayer Authentication, when required.

    Caution:

    At this time, the transfer PIN is only good on an Individual Master File (IMF) to IMF transfer or a Business Master File (BMF) to BMF transfer within the same TIN. The taxpayer is only validated on the TIN that holds the transfer PIN.

  3. If you are not able to verify the transfer PIN through the IAT Disclosure tool, apologize to the taxpayer and resume normal disclosure procedures found in IRM 21.1.3.2.3, Required Taxpayer Authentication.

    Reminder:

    CC ENMOD history will reflect four (4) digit transfer PIN(s) previously issued, along with the date of issuance. If CC ENMOD history shows that the PIN was provided on a previous day, apologize to the taxpayer and explain that the transfer PIN is no longer valid. Continue normal disclosure procedures. See IRM 21.1.3.2.3, Required Taxpayer Authentication.

  4. The transfer PIN process is only valid on the initial call, including multiple transfers for the same call. The transfer PIN expires at the end of the call which generated it.

  5. The transfer PIN process covers only required taxpayer authentication in IRM 21.1.3.2.3, Required Taxpayer Authentication, as well as IRM 21.1.3.2.4, Additional Taxpayer Authentication, when required.

  6. The transfer PIN process is not valid for third party contact. See IRM 5.19.1.2.3.3 (5), Transfer Personal Identification Number (PIN) Generation.

  7. See IRM 21.1.3.2.5, Initial Authentication Transfer Procedures/Transfer PIN, and IRM 21.1.3.2.6, Accepting Transferred Calls When the Taxpayer Provides a 4-Digit Transfer PIN.

Documenting Account Actions

  1. Whenever you work a case, you are required to document actions taken on taxpayer's accounts.

    • Add a complete narrative history for ALL account accesses including all cross-referenced IMF and BMF accounts,

    • Identify whom the contact is with, such as the taxpayer or their representative. See the table under IRM 21.1.3.20.2(2), Oral Statement Documentation Requirements.

    • Document actions taken on taxpayer's accounts, as well as any actions promised by the taxpayer or their representative. Be sure to annotate the date the promised action is to occur.

    • 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 available 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" or similar designation to describe the taxpayer. If you identify any such reference, immediately inform your manager. You can document that the taxpayer has submitted correspondence or used arguments that appear frivolous or subject to penalty. Terms such as "frivolous argument" or "tax avoidance argument" are examples of acceptable terms to use.

    Example:

    It is not acceptable to document a case with, "Taxpayer is constitutionally-challenged." However, it is acceptable to document a case with, "Taxpayer’s correspondence contains a statement(s) challenging the constitutionality of tax laws."

    Example:

    It is not acceptable to document a case with, "Taxpayer is a protestor." However, it is acceptable to document a case with, "Taxpayer made statements regarding their position on tax laws that have been found frivolous by the courts."

    The Treasury Inspector General for Tax Administration (TIGTA) conducts annual audits to determine whether the IRS is compliant with this provision of RRA 98. 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 (such as Letter 0544C, Apology for IRS Error). Include a notation on AMS that you apologized for a service error on a particular date.

    Exception:

    The requirement to send an apology letter when an interim letter is erroneously issued is temporarily rescinded. As a result, neither ACSS nor CSCO is required to address erroneously sent interim letters (such as Letter 2644C, Second Interim Response, or Letter 2645C, Interim Letter) when a taxpayer’s account is closed during this period due to previous actions. A history should be input on AMS stating that the case was closed no action and that no apology letter was issued.

  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 (or directions to obtain online),

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

    7. Appropriate telephone number,

    8. Envelopes,

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

    10. 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 5.19.1.5.16.1.1, 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 j).

  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) through d), and f) through j) 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 j) above.

  12. Up to 180 day Short Term Payment Plan, IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days, should include the following:

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

      Exception:

      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) through d), and f) through i) above.

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

  14. 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.

  15. 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.

  16. 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 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:

    • Field Assistance employees - IRM 5.19.1.2.6.2.1, Short Term Payment Plans - Field Assistance, FA, Employees.

    • CSCO employees - IRM 5.19.1.2.6.2.2, Short Term Payment Plans - CSCO Employees.

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

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 & OOB Sole Proprietors:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status or in ST 22 or ST 24, AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, No more than 180 days total (including previous Short Term Payment Plans, if previously granted).

  3. For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days.

    • If the taxpayer’s AAB exceeds FA authority shown above, follow procedures in IRM 5.19.1.4.1.3, Account Actions on Referral/Redirect - FA Employees, to transfer the account to the appropriate function.

    • If the taxpayer cannot full pay their balance within 180 days, or otherwise does not qualify for a Short Term Payment Plan, the taxpayer should consider an IA. See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.1.6.4, Installment Agreements (IAs).

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

    Reminder:

    Follow normal processing procedures when working FERDI accounts. See IRM 5.19.18.4, FERDI General Case Processing Overview.

  2. Short Term Payment Plans - IMF & OOB Sole Proprietors:

    When: Dollar Criteria: Duration:
    Account includes onlyNotice Status balance due modules, AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ and less, No more than 180 days total (including previous Short Term Payment Plans, if previously granted).

    Reminder:

    Notice Status accounts in CSCO that update to ST 22 due to CC STAUP not input or updated timely will be worked by CSCO. See Note in IRM 5.19.1.3.5(1), For Other Account Issues Requiring Referrals or Redirect.

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

    When: Dollar Criteria: Duration:
    Account includes onlyNotice Status balance due modules, AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or less, No more than 180 days total (including previous Short Term Payment Plans, if previously granted).

    Reminder:

    Notice Status accounts in CSCO that update to ST 22 due to CC STAUP not input or updated timely will be worked by CSCO. See Note in IRM 5.19.1.3.5(1), For Other Account Issues Requiring Referrals or Redirect.

  4. For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days.

    • If the taxpayer’s AAB exceeds CSCO authority shown above, follow procedures in IRM 5.19.1.4.1.2, Account Actions on Referral/Redirect - CSCO Employees, to transfer the account to the appropriate function.

    • If the taxpayer cannot full pay their balance within 180 days, or otherwise does not qualify for a Short Term Payment Plan, the taxpayer should consider an IA. See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.1.6.4, Installment Agreements (IAs).

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

    Note:

    FERDI accounts are worked by specific ACS call sites. See IRM 5.19.1.3.4.3.5, ACS FERDI Issues, and IRM 5.19.18.4, FERDI General Case Processing Overview.

  2. Short Term Payment Plans - IMF & OOB Sole Proprietors:

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status, ST 22, and/or 24, AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or less, No more than 180 days total (including previous Short Term Payment Plans, if previously granted).

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

    When: Dollar Criteria: Duration:
    All balance due modules in Notice Status, ST 22, and/or 24, AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or less, No more than 180 days total (including previous Short Term Payment Plans, if previously granted).

  4. For criteria and procedures for Short Term Payment Plans, see IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days.

    • If the taxpayer’s AAB exceeds ACS/ACSS authority shown above, follow procedures in IRM 5.19.1.4.1.1, Account Actions on Referral/Redirect - ACS and ACSS Employees, to transfer the account to the appropriate function.

    • If the taxpayer cannot full pay their balance within 180 days, or otherwise does not qualify for a Short Term Payment Plan, the taxpayer should consider an IA. See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.1.6.4, Installment Agreements (IAs).

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

    • In-Business Trust Fund (IBTF)

  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), and Partial Pay Installment Agreement, (PPIA).

    • Field Assistance employees - IRM 5.19.1.2.6.3.2, Installment Agreements - Field Assistance Employees.

    • CSCO employees - IRM 5.19.1.2.6.3.3, Installment Agreements - CSCO Employees.

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

    Note:

    See Exhibit 5.19.1-13, Installment Agreement Table, which provides a summary of the various IAs.

  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 IAs - 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

    • OOB Sole Proprietor

    • BMF Non-Trust Fund:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is $25,000 or less,
    • 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 SIAs $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).

  4. IBTF Express Agreements:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is $25,000 or less, Earlier of 24 months or before CSED.

    Note:

    For criteria and procedures for IBTF Express Agreements, 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 Sole Proprietors:

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

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

    whichever comes first.

  3. NSIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less. The agreement will be fully paid prior to the CSED.

  4. PPIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, Will not full pay within the CSED.

  5. For criteria and procedures for IAs, see IRM 5.19.1.6.4, Installment Agreements (IAs), IRM 5.19.1.6.5, PPIA.

    • If the taxpayer’s AAB exceeds FA authority shown above, follow procedures in IRM 5.19.1.4.1.3, Account Actions on Referral/Redirect - FA Employees, to transfer the account to the appropriate function.

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

    Reminder:

    Follow normal processing procedures when working FERDI accounts. See IRM 5.19.18.4, FERDI General Case Processing Overview.

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

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

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

    whichever comes first.

  3. NSIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or less, The agreement will be fully paid prior to the CSED.

  4. PPIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria Duration of IA
    AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, Will not full pay within the CSED.

  5. For criteria and procedures for IAs, see IRM 5.19.1.6.4, Installment Agreements (IAs), IRM 5.19.1.6.5, PPIA.

    • If the taxpayer’s AAB exceeds ACS/ACSS/CSCO authority shown above, follow procedures in IRM 5.19.1.4.1.2, Account Actions on Referral/Redirect - CSCO Employees, to transfer the account to the appropriate function.

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

    Note:

    FERDI accounts are worked by specific ACS call sites. See IRM 5.19.1.3.4.3.5, ACS FERDI Issues, and IRM 5.19.18.4, FERDI General Case Processing Overview.

  2. Streamlined IAs over $25,000:

    Entity Dollar Criteria Duration of IA
    IMF and OOB Sole Proprietor AAB (CC SUMRY) is between $25,001 and $50,000,
    • The AAB balance will be fully paid in 72 months, or

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

    whichever comes first.

  3. NSIAs:

    Entity Dollar Criteria Duration of IA
    IMF and OOB Sole Proprietor AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, The agreement will be fully paid prior to the CSED.

  4. PPIAs:

    Entity Dollar Criteria Duration of IA
    IMF and OOB Sole Proprietor AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, Will not full pay within the CSED.

  5. For criteria and procedures for IAs, see IRM 5.19.1.6.4, Installment Agreements (IAs), IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, IRM 5.19.1.6.5, PPIA.

    • If the taxpayer’s AAB exceeds ACS/ACSS authority shown above, follow procedures in IRM 5.19.1.4.1.1, Account Actions on Referral/Redirect - ACS and ACSS Employees, to transfer to the field.

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.

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:

    Dollar Criteria: Disposition Financial Analysis needed?
    Less than ≡ ≡ ≡ ≡ ≡ ≡ (AAB (CC SUMRY) plus accruals) (IMF) CNC No
    AAB (CC SUMRY) is between ≡ ≡ ≡ ≡ — ≡ ≡ ≡ ≡ ≡ PPIA & CNC Yes, see IRM 5.19.13, Campus Procedures for Securing Financial Information
    Tax only (excludes P&I) up to $10,000 (Must meet requirements in IRM 5.19.1.6.4(8), Installment Agreements (IAs)) Guaranteed IA No
    AAB (CC SUMRY) is $25,000 or less, SIA $25,000 and under 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. SIAs over $25,000 - IMF and OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY) between $25,001 and $50,000, No

  3. Expanded IAs: (Expanded IAs are no longer applicable per changes to NSIAs.)

  4. NSIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY) is $100,000 or less, No, but:
    • AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED, and

    • A history item must be input on CC ENMOD indicating "NOCIS" ,

  5. PPIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY) is $100,000 or less, Yes, see IRM 5.19.13, Campus Procedures for Securing Financial Information

Financial Analysis, Verification and Substantiation - CSCO Employees
  1. The tables below provide guidance to 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. SIA over $25,000 - IMF and OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY) between $25,001 and $50,000, No

  3. Expanded IAs: (Expanded IAs are no longer applicable per changes to NSIAs.)

  4. NSIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY) is $250,000 or less, No, but:
    • AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED, and

    • A history item must be input on CC ENMOD indicating "NOCIS" .

    Note:

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

  5. PPIAs - IMF & OOB Sole Proprietors:

    Dollar Criteria: Financial Analysis needed?
    AAB (CC SUMRY)is $250,000 or less, Yes, see IRM 5.19.13, Campus Procedures for Securing Financial Information.

    Note:

    See IRM 5.19.1.6.4(13), Installment Agreements, for specific guidance.

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

  2. SIA over $25,000:

    Entity Dollar Criteria: Financial Analysis needed?
    IMF and OOB Sole Proprietor AAB (CC SUMRY) between $25,001 and $50,000, No

  3. NSIAs:

    Entity Dollar Criteria Financial Analysis needed?
    IMF and OOB Sole Proprietor AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ ≡ or less, No, but:
    • AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED, and

    • A history item must be input on CC ENMOD indicating "NOCIS" .

    IMF and OOB Sole Proprietor AAB (CC SUMRY) is more than ≡ ≡ ≡ ≡ ≡ ≡ but less than ≡ ≡ ≡ ≡ ≡ ≡, Yes, see IRM 5.19.13, Campus Procedures for Securing Financial Information.

    Note:

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

  4. PPIAs:

    Entity Dollar Criteria Financial Analysis needed?
    IMF and OOB Sole Proprietor AAB (CC SUMRY) is ≡ ≡ ≡ ≡ ≡ or less, Yes, see IRM 5.19.13, Campus Procedures for Securing Financial Information.

    Note:

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

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 or Money Order, for information to provide to those taxpayers who will not be using 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 21.2.1.48.2, IRS Direct Pay.

    • Information on IRS Direct Pay inquiries can be found in IRM 21.2.1.48.2.1, Responding to IRS Direct Pay Inquiries.

    • For inquiries regarding notification of an unsuccessful Direct Pay, see IRM 21.2.1.48.2.2, Inquiries Regarding Unsuccessful Direct Pay Payments.

  4. Taxpayers may use credit or debit cards to make payments, by phone or internet. See IRM 21.2.1.48.6, 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 21.2.1.48.5, 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 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 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. See 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. See IRM 5.19.1.6.4.13, DDIA.

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

    • Make the check or money order 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. Refer to the following table when the taxpayer is making a payment intended for one of the following MFTs. This will help ensure the payments are correctly applied to the taxpayer’s account.

    If the taxpayer is making a payment intended for an ... Then advise the taxpayer to notate the memo section with …
    MFT 13 "CVPN" after their TIN and "MFT 13"
    MFT 29 "IRA" after their TIN and "MFT 29"
    MFT 31 "PTNL" after their TIN and "MFT 31"
    MFT 35 "SRP" after their TIN and "MFT 35"
    MFT 55 "CVPN" after their TIN and "MFT 55"
    MFT 65 "PTNL" after their TIN and "MFT 65"

  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. IAT uses IDRS to gather and submit data. If IDRS is down, or a Command Code (CC) is unavailable, IAT will not function, or may function improperly.

    Note:

    The IAT Tool Manager (ITM) is installed via the IAT website. Employees’ access to IAT tools is controlled by the CCs in their IDRS profile. If an IAT Tool is missing from your ITM, review your IDRS profile to verify you have the CC(s) required for the tool.

  4. Visit the IAT Website to:

    • Research IAT Job Aids, including tool descriptions,

    • Subscribe to the IAT Newsletter, the iNews, which details all ongoing IAT activity with tool rollouts and retirements,

    • Request new IAT Tools or enhancements to existing tools, or

    • Report problems with IAT Tools.

  5. If an IAT tool is unavailable, not functioning properly, there is a problem with the ITM, or the tool is otherwise determined not to be appropriate due to a specific situation:

    1. Work the case without the tool, using IDRS and/or AMS, following established procedures. Document the reason for not using the tool on AMS.

    2. Access the IAT Website, select Known Issues, and follow the instructions to report the problem (if directed).

    Exception:

    Do not report IAT problems resulting from IDRS or CC downtime, or speed issues.

    Note:

    Some areas require employees to advise analysts or management prior to reporting problems with IAT tools. Follow the appropriate guidelines for your functional area.

  6. FA employees should refer to IRM 21.3.4-12, 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. When an action must be taken and a Mandatory IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action (unless paragraph (3) above applies).

    Functions Mandatory IAT Tools Suggested Use
    ACS and ACSS
    • Credit Transfer

    • Erroneous Refund

    • Fill Forms

      Exception:

      Issuing e-4442. See IRM 21.3.5.4.2.1.1, Preparing an e-4442/4442.

    • Letters

    • Manual Refund

    • REQ54

    • REQ77

    • X Claim (ACSS)

    • Compliance Suite

    • Disclosure

      Exception:

      When transferring a call to or from a participating function, ACS employees are required to use IAT Disclosure tool to generate or validate a Transfer PIN, provided all requirements are met. See IRM 5.19.1.2.3.3 , Transfer Personal Identification Number (PIN) Generation, IRM 5.19.1.2.3.3.1 , Transfer Personal Identification Number (PIN) Acceptance.

    CSCO
    • Credit Transfer

    • Erroneous Refund

    • eClerical (for ESTAB requests)

    • FRM49

    • Letters

    • Manual Refund

    • REQ54

    • REQ77 (TDI)

    • TFRP Suite

    • Withholding Compliance (Andover & Austin)

    • Compliance Suite

    Note:

    For more information on each tool, including job aids, see the IAT Website.

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 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).

    Reminder:

    These requests are covered under the Taxpayer Bill of Rights. See the Note under IRM 5.19.1.2(1), Balance Due Overview, and Taxpayer Bill of Rights FAQs.

  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" . 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" = "P" for Primary taxpayer or "S" for Secondary taxpayer, 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 IRS Enterprise Electronic Fax (EEFax) 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, Media Contacts.

  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. An IDRS account in Collection ST 22 is under the jurisdiction of ACS.

  2. Correspondence: 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 based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping).

    Reminder:

    If a Notice Status account in CSCO updates to ST 22 because a CC STAUP was not input or updated timely, CSCO will work the case. See IRM 5.19.1.3.5, For Other Account Issues Requiring Referrals or Redirect.

  3. Telephone Contacts: 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. Address all non-ACS (non-collection) related account issues before transferring to ACS. After all non-ACS (non-collection) related account issues are addressed, transfer the call to the appropriate ACS toll free number using the table below and the Telephone Transfer Guide, see IRM 5.19.1.2.3.3 , Transfer Personal Identification Number (PIN) Generation. If a taxpayer cannot or does not want to be transferred to ACS, refer to paragraph (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 agrees with the balance due, The taxpayer requests a payoff,
    1. Do not provide a payoff; the taxpayer’s issue relates to the balance due.

    2. Offer to transfer the call to ACS.

      Note:

      The current balance due shown on a transcript may not include the total penalties and interest that will accrue until the taxpayer’s balance is paid in full.

    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.

  4. Transfer the call to ACS depending on the type of account and/or language 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. IMF:

      Language ... UCCE Extension ...
      English 1075
      Spanish 1071

    2. BMF:

      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.

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

    1. Give the taxpayer the appropriate ACS telephone number:

      Account Type ... Toll-Free Number ...
      IMF 800-829-7650
      BMF 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.

  6. 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 5.19.17.2.12, 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 EEFax 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, EEFax 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 EEFax, 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 have the right to receive assistance from the Taxpayer Advocate Service (TAS) if experiencing economic harm or are seeking help in resolving tax problems that have not been resolved through normal channels. For criteria qualifying taxpayers for TAS 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 5.19.5.6.2, 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 13.1.7.6, 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 EEFax to the ID Theft EEFax 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.

Low Income Taxpayer Clinics (LITCs)
  1. Low Income Taxpayer Clinics (LITCs) represent individuals whose income is below a certain level and need to resolve tax problems with the IRS: LITCs are independent from the IRS and TAS. LITCs can represent taxpayers in Tax Court as well as with the IRS. Pursuant to IRC 7526, subject to the availability of appropriated funds, the IRS may award matching grants for the development, expansion, or continuation of LITCs.

  2. If a taxpayer needs assistance resolving a balance due account and does not have a representative, they may be eligible for assistance from a Low Income Taxpayer Clinic (LITC). LITCs:

    • Assist low income individuals in resolving federal tax problems such as audits, appeals, litigations, and tax collection disputes.

    • Provide services to taxpayers who speak English as a second language, including education about taxpayer rights and responsibilities, and consultations on individual tax issues.

    • Services must be free or cost a nominal fee. LITCs receive funding from the IRS and the program receives oversight from the National Taxpayer Advocate, but the clinics are wholly independent of the IRS.

    • For a complete list of LITCs, services offered, and contact information, see Pub 4134, Low Income Taxpayer Clinic List.

  3. The Supplemental Standards of Ethical Conduct for Employees of the Department of the Treasury prohibit IRS employees from recommending or referring taxpayers to specific attorneys or accountants.

    • In addition, the Office of Government Ethics’ Standards of Ethical Conduct for Employees of the Executive Branch prohibit IRS employees from endorsing any product, service or enterprise, thus further limiting the ability to refer taxpayers to tax professionals.

    • The Office of Chief Counsel took the position that an LITC is similar enough to a firm of attorneys or accountants to fall within the scope of regulation 5 CFR 3101.106(a).

    • Consistent with these prohibitions, certain sections of the IRM made it clear that IRS employees could not direct taxpayers to a specific LITC.

  4. However, Section 1402 of the Taxpayer First Act (Public Law No. 116-25, Section 1402, 133 Stat. 981 (2019)) changes current practice and provides as follows:

    • Notwithstanding any other provision of law, officers and employees of the Department of the Treasury may -

    1. "Advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance from one or more specific qualified low-income taxpayer clinics receiving funding under this section, and"

    2. "Provide information regarding the location of, and contact information for, such clinics."

  5. If during the course of the contact with a taxpayer, they advise you they are experiencing an economic hardship situation or if they ask for assistance in resolving their tax problems, see IRM 5.19.1.3.2.3, Taxpayer Advocate Service (TAS), for guidance about referring taxpayers to TAS.

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, 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:

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

    2. 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.

    3. If the case is assigned to an RO group, but not yet assigned to a specific RO (last two digits of assignment code as 00), 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.

    4. 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. Advise the taxpayer of available payment options per IRM 5.19.1.2.7, Ways to Submit Payments, and IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order.

  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. See IRM 5.19.1.4.2, Taxpayer Information.

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

  2. Refer to Exhibit 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 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 833-972-8965.

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

    Account Type ... UCCE Extension ...
    IMF 1071
    BMF 1076

    Exception:

    Special Compliance Personnel (SCP) employees who receive Spanish speaking taxpayers calling about SCP accounts must offer the OPI service according to paragraph (4) instructions in IRM 5.19.1.3.4.1, Multilingual Services, and should not transfer calls to ACS Spanish IMF or ACS Spanish BMF applications.

  3. For Multilingual calls, refer to IRM 5.19.1.3.4.1, Multilingual Services.

  4. For Tax Law Inquiries, refer to IRM 5.19.1.3.4.2, 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 5.19.1.3.4.3, 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 interpretation is needed for limited English proficient (LEP) taxpayers, offer the taxpayer OPI Service.

    1. For Spanish speaking callers:

      Account Type ... UCCE Extension ...
      IMF 1071
      BMF 1076

      Exception:

      Special Compliance Personnel (SCP) employees who receive calls from Spanish speaking taxpayers calling about SCP accounts must offer the OPI service according to paragraph (4) instructions below and should not transfer calls to ACS Spanish IMF or ACS Spanish BMF applications.

      Exception:

      Philadelphia ACS assistors staffing the International ACS line who do not speak Spanish but who receive calls from Spanish speaking taxpayers calling about International accounts must offer the OPI service according to paragraph (4) instructions below and should not transfer calls to ACS Spanish IMF or ACS Spanish BMF applications.

    2. For all other LEP callers, offer OPI service. See paragraph (4) below.

  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. Accounts Management will 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).

    • If income is taxable,

    • If the taxpayer is eligible for a tax benefit (Taxpayer Identification Number (TIN)/income requirements, time frame for eligibility, etc.), and

    • If an expense (or loss) is deductible.

      Note:

      This includes advising the taxpayer of the correct forms for reporting requirements.

  2. When the taxpayer's Tax Law inquiry is one of the topics listed in (1) above: see IRM 5.19.1.3.4.2.1, Tax Law Inquiry Topic is Handled by AM.

  3. When the taxpayer's Tax Law inquiry is not one of the topics listed in (1) and:

    1. The taxpayer has internet access, see IRM 5.19.1.3.4.2.2, Tax Law Inquiry Topic is NOT Handled by AM and TP has Internet Access.

    2. The taxpayer does not have internet access, see IRM 5.19.1.3.4.2.3, 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.

  4. AM does not answer Out-of-Scope tax law questions. See IRM 21.1.1.3.2, Out of Scope and Limited Service, and IRM Exhibit 21.1.1-1 , Out-of-Scope Topics and Forms, for information regarding the services AM does not provide.

Tax Law Inquiry Topic is Handled by AM
  1. When the taxpayer's Tax Law inquiry is one of the topics listed in IRM 5.19.1.3.4.2(1), 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,
      • English: 1001

      • Spanish: 1101

      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 not one of the topics listed in IRM 5.19.1.3.4.2(1), Tax Law Inquiry, the inquiry is not handled by AM and the taxpayer should be referred to self-help methods. Advise the taxpayer that the Service does not provide live assistance on this topic and refer the taxpayer to IRS.gov.

  2. Provide the taxpayer with the following navigation tips:

    • Tools - Enter "Tools" into the Search feature. Taxpayers can browse a list of tax tools available for individual taxpayers, businesses, and tax professionals, or

    • Interactive Tax Assistant (ITA) - Enter ITA into the Search feature. 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,

    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 not one of the topics listed in IRM 5.19.1.3.4.2(1), 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:

    • Call 800-829-3676 to order Tax Forms and Publications. Assistance at this telephone number is available in English and Spanish

    • Commercial software packages may provide answers to tax questions

    • A tax professional

    and close the call.

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

  2. For Account Issues, refer to IRM 5.19.1.3.4.3.1, Account Issues.

  3. For Refund Inquiries, refer to IRM 5.19.1.3.4.3.2, Refund Inquiries.

  4. For Exam Issues, refer to IRM 5.19.1.3.4.3.3, Exam Issues.

  5. For AUR Issues, refer to IRM 5.19.1.3.4.3.4, AUR Issues.

  6. For ACS FERDI Issues, refer to IRM 5.19.1.3.4.3.5, ACS FERDI Issues.

  7. For BMF Taxpayers, refer to IRM 5.19.1.3.4.3.6, BMF Taxpayer.

  8. For Special Compliance Personnel (SCP) Calls, refer to IRM 5.19.1.3.4.3.7, 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 5.19.1.3.4.3.2, 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 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 IRM 21.5.10-2, Audit Information Management Systems (AIMS) STATUS CODE GUIDE - CAMPUS CASES.

AUR Issues
  1. Follow the procedures in IRM 21.3.1.6.53, 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:

    • FERDI calls on TDA ST 22 or ST 24 are handled by the Jacksonville, Seattle or Atlanta Call Sites. If translation is needed for Spanish speaking FERDI taxpayers, Jacksonville, Seattle and Atlanta ACS employees will use OPI Service.

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

      Call Site: UCCE Extension ...
      Jacksonville, Seattle, & Atlanta (FERDI) 1082

      Note:

      All FERDI calls needing Spanish translators should be transferred to the FERDI line as shown in the table above. They will utilize OPI Service instead of a Spanish assistor.

      Exception:

      Employees not trained to handle BMF accounts will transfer calls from FERDI taxpayers that are in-business and have unresolved collection (TDA/TDI) issues under a cross referenced EIN to telephone transfer number 1085. If the caller is no longer in business or is in-business but does not have a BMF collection issue, the call should not be transferred and should be handled according to normal FERDI procedures.

  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:

    Account Type ... UCCE Extension ...
    BMF 1085

    Exception:

    Puerto Rico ACS provides bilingual support for BMF 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 5.19.5.4.11.8, 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, during their hours of operation 8:00 am to 8:00 pm (local time), must transfer the call to the SCP line:

    SCP Line ... UCCE Extension ...
    English 1138
    Spanish 1139

    Note:

    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 833-282-7220.

  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 the appropriate function. See IRM 5.19.1.6.4, Installment Agreements (IAs), and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

  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: If there is a TC 480 or TC 780 on the account (ST 71) (-Y Freeze), a pending OIC is present. See IRM 5.19.17.3, Offer in Compromise (OIC) Procedures.

    1. Advise the taxpayer their request is being referred to another office for processing. Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office.

    2. Do not input a TC 971 AC 043.

    3. Initiate a Form 4442, Inquiry Referral, to refer the request to the Compliance Services OIC Unit at the appropriate campus. See SERP, under the\Who/Where, Offer-in-Compromise (OIC) Centralized Service Center Locations.

    4. Input history on AMS or CC ENMOD, "44422OIC" or "CORR2OIC" . Input CC STAUP 2209 if in Notice Status.

    Note:

    If the taxpayer claims they filed an OIC but there is no indication present (TC 480 or TC 780 on the account, ST 71, -Y Freeze), see IRM 5.19.17.3.1, Taxpayer Claims OIC Previously Submitted (No TC 480 or ST 71 Present).

  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 21.3.1.6.56, 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 420/421 with TC 300 Route to the appropriate Examination operation based on the TC 42X 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 Not Applicable 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 Not applicable
    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

    Reminder:

    If a Notice Status account in CSCO updates to ST 22 because a CC STAUP was not input or updated timely, CSCO will work the case. See IRM 5.19.1.3.5, For Other Account Issues Requiring Referrals or Redirect.

  2. Continue processing by ensuring you input a 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 ... 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 5.19.5.4.1.

    • 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. 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.

    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 resides in Arkansas. According to the RO by State, 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.

        Example:

        Taxpayer resides in Iowa. According to the RO by State, the AO is 26. Enter "2600" in the AOTO field.

      5. Page up (transmit).

  5. 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 Code ASGNI/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 5.18.1.6.1, ASFR TC 971 AC 143, 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

  6. 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.

  7. For correspondence, work the case per the request received in the correspondence. Follow disclosure guidelines and other procedures outlined throughout this section. IRM 5.19.1.2.3 , Disclosure Overview: Verifying Identity of Contact Party.

  8. 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.

  9. The following sections provide account actions on referral/redirects by business unit:

    • ACS and ACSS employees - IRM 5.19.1.4.1.1, Account Actions on Referral/Redirects - ACS and ACSS Employees.

    • CSCO employees - IRM 5.19.1.4.1.2, Account Actions on Referral/Redirects - CSCO Employees.

    • Field Assistance employees - IRM 5.19.1.4.1.3, Account Actions on Referral/Redirects - FA Employees.

Account Actions on Referral/Redirects - ACS and ACSS Employees
  1. Follow the procedures below when handling an account exceeding ACS authority levels. See IRM 5.19.1.2.6, Case Processing Authority Levels:

    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.

    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:

      And ... Then ...
      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.

      3. Request lead/manager approval to transfer the case to the field by:

        Note:

        The approver must document their approval in AMS Comments.

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

        • Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

        • ST 22 (if applicable): Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      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.

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

      2. Request lead/manager approval to transfer the case to the field by:

        Note:

        The approver must document their approval in AMS Comments.

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

        • Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

        • ST 22 (if applicable): Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      4. 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.

      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 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. Request lead/manager approval to transfer the case to the field by:

        Note:

        The approver must document their approval in AMS Comments.

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

        • Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

        • ST 22 (if applicable): Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      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.

      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. Request lead/manager approval to transfer the case to the field by:

        Note:

        The approver must document their approval in AMS Comments.

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

        • Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

        • ST 22 (if applicable): Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

      5. 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.

      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.

      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.

      4. Request lead/manager approval to transfer the case to the field by:

        Note:

        The approver must document their approval in AMS Comments.

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

        • Reassign the account to 6541 on IDRS (Follow instructions in IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

        • ST 22 (if applicable): Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

      5. 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.

      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.

      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:

      And ... Then ...
      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.

      3. Request lead/manager approval to transfer the case to the field by:

        • Input CC STAUP 2200 to IDRS for any Notice Status modules.

        • Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

          Note:

          The approver must document their approval in AMS Comments.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      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.

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

      2. Request lead/manager approval to transfer the case to the field by:

        • Input CC STAUP 2200 to IDRS for any Notice Status modules.

        • Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

          Note:

          The approver must document their approval in AMS Comments.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      4. 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.

      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. Request lead/manager approval to transfer the case to the field by:

        • Input CC STAUP 2200 to IDRS for any Notice Status modules.

        • Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

          Note:

          The approver must document their approval in AMS Comments.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO 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.

      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.

      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. Request lead/manager approval to transfer the case to the field by:

        • Input CC STAUP 2200 to IDRS for any Notice Status modules.

        • Input "TOI7,05,TFRO" . See IRM 5.19.5.8.4, I7 - Transfers Actions.

          Note:

          The approver must document their approval in AMS Comments.

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

        • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

      5. 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.

      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.

Account Actions on Referral/Redirects - CSCO Employees
  1. Follow the procedures below when handling an account exceeding CSCO authority levels. See IRM 5.19.1.2.6, Case Processing Authority Levels:

    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 IRM 5.19.1.4.1(4), Account Actions on Referral/Redirects.

    If ... Then ...
    The account is in 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.

    3. Refer the case to the appropriate function.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) and ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    6. If contact is over the phone, inform the taxpayer verbally of the referral. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral.

    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 the appropriate ACSS Site based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

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

    2. Refer the case to the appropriate function.

    3. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF) and ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    4. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    5. If contact is over the phone, inform the taxpayer verbally of the referral. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral.

    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 the appropriate ACSS Site based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

    2. Refer the case to the appropriate function.

    3. Document AMS.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) and ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    6. If contact is over the phone, inform the taxpayer verbally of the referral. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral.

    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 the appropriate ACSS Site based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

    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. Refer the case to the appropriate function.

    4. Document AMS.

    5. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    6. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    7. If contact is over the phone, inform the taxpayer verbally of the referral. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral.

    8. 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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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.

    3. Refer the case to the appropriate function.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) and ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    6. If contact is over the phone, inform the taxpayer verbally of the referral. If you do not speak with the taxpayer, issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform them of the referral.

    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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

Account Actions on Referral/Redirects - FA Employees
  1. Follow the procedures below when handling an account exceeding FA authority levels. See IRM 5.19.1.2.6, Case Processing Authority Levels:

    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 IRM 5.19.1.4.1 (4), Account Actions on Referral/Redirects.

    If ... Then ...
    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.

    3. Refer the case to the appropriate function.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    6. Inform the taxpayer verbally of the referral.

    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 the appropriate ACSS site based on BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

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

    2. Refer the case to the appropriate function.

    3. If the account balance is between ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    4. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    5. Inform the taxpayer verbally of the referral.

    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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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. Refer the case to the appropriate function. Inform the taxpayer verbally of the levy release.

    3. Document AMS.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. If the account balance is more than ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    6. Inform the taxpayer verbally of the referral.

    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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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. Refer the case to the appropriate function.

    4. Document AMS.

    5. If the account balance is between ≡ ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    6. If the account balance is more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    7. Inform the taxpayer verbally of the referral.

    8. 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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

    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.

    3. Refer the case to the appropriate function.

    4. If the account balance is between ≡ ≡ ≡ ≡ ≡ and ≡ ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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. Encourage the taxpayer to call ACS as soon as possible to make arrangements.

    5. Inform the taxpayer verbally of the referral.

    6. If the account balance is more than ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF and BMF), 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 IRM 5.19.1.4.1(4)(b), Account Actions on Referrals/Redirects).

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

      • Advise the taxpayer it could take up to 90 days before the RO contacts them. Encourage the taxpayer to make voluntary payments until the RO contacts them.

    7. Inform the taxpayer verbally of the referral.

    8. 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 BOD code and state mapping (W&I State Mapping or SB/SE State Mapping).

      • 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.

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.

    Exception:

    Deleting a contact number in the "HOME FIELD" or "BUSINESS FIELD" is acceptable if it is being replaced by a more current contact number.

  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. 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:

    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, you may 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(5), 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, IRM 3.13.5.29, Oral Statement/Telephone Contact Address Change Requirements, IRM 3.13.5.29.1, "Oral" Statement/Telephone Contact Address Change Requirements for MFJ Accounts, and IRM 3.13.2.4.6, Change of Address.

  2. For correspondence requests, see IRM 3.13.5.47, Updating Address Records. For BMF correspondence requests, see IRM 3.13.2.4.6, 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 Codes ENREQ, 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 3.13.5.56, 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. However, you must address any delinquent returns as well as secure updated addresses and telephone number to update the account with current information. See IRM 5.19.1.4.2, Taxpayer Information.

  3. Allow the taxpayer an opportunity to dispute a liability they do not agree with by following the appropriate process described in following paragraph.

    Exception:

    If account history shows the taxpayer was previously allowed time to dispute their liability, but failed to submit a claim (or follow the appropriate process per the following paragraph) within 45 days, since the last history, and it is apparent the taxpayer is attempting to delay collection, pursue collection.

  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 (6) 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 21.3.1.6.57, IMF Underreporter Letters
    SFR - Taxpayer disputes the assessment, See IRM 5.18.1, Automated Substitute for Return (ASFR) Program, and SERPWho/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, or

    • Use the Exam Project Code Search to assist taxpayers with closed Examination issues. See IRM 4.13.2.3, Role of Contact Employees when a Reconsideration Request is Received and the Examination was Performed in the Area Office or Campus Examination Function.

    Note:

    ACS employees may follow IRM 5.19.1.4.3.3, ACS Procedures for Accessing CEAS on Closed Examination Cases.

    CSED Reconciliation or Verification needed,
    1. 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 (CSED), or IRM 5.1.19, Collection Statute Expiration

    2. If the account meets the criteria listed in IRM 5.19.10.4(8), Collection Statute Expiration Date (CSED) Verification and Correction, refer it to a CSED Specialist per: SERP under Who/Where tab, CSED Referrals - Campus

    Taxpayer disagrees with the Failure to File (FTF), Failure to Pay (FTP), and/or Failure to Deposit (FTD) penalties, Determine whether the taxpayer meets Reasonable Cause abatement criteria. See IRM 20.1.1, Introduction and Penalty Relief.

    Note:

    When considering requests for relief from the FTF, FTP, and/or FTD penalties, determine if the taxpayer is eligible for the first time abate (FTA) administrative waiver using the Reasonable Cause Assistant (RCA), when applicable. See IRM 20.1.1.3.1, Unsigned or Oral Statement Requests for Penalty Relief, IRM 20.1.1.3.6, Reasonable Cause Assistant (RCA), and IRM 20.1.1.3.3.2.1, First Time Abate (FTA).

    Exception:

    ACSS employees should refer to IRM 5.19.6.12(12), Receiving and Sorting Incoming Mail, for penalty abatement requests involving:

    • Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests (MFT 17),

    • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) (MFT 08), and/or

    • Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax (MFT 08).

  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 EEFax a copy of the front and back of any cancelled check, money order, or cash receipt while on the call.

    2. If EEFaxing is not possible, give the taxpayer an appropriate deadline and ACSS address based on BOD code and state mapping (W&I State Mapping or SB/SE State Mapping) 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 EEFax a copy of the front and back of the cancelled check while on the call.

    2. If EEFaxing 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 website. Ensure all email communications regarding NFTLs are via secure messaging.

    Note:

    Consider providing the taxpayer Pub 4235, Collection Advisory Group Numbers and Addresses, 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 5.19.1.3.5(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.

ACS Procedures for Accessing CEAS on Closed Examination Cases
  1. Correspondence Examination Automation Support (CEAS), is a web-based application that was developed to enhance the examination process. CEAS interacts with Report Generation Software (RGS), an audit software program that supports an electronic case file and is used from pre-audit through case closure, and is used to access CEAS.

  2. ACS employees may access CEAS on closed Examination cases to provide access to the Tax Examiner’s notes. This will enable them to inform taxpayers of the issues raised on the audit and advise them of the documentation that can be submitted for the audit reconsideration process.

    Note:

    If you do not have access to CEAS/RGS (or CEAS/RGS is not available), follow procedures in the fifth row of the table under IRM 5.19.1.4.3(4), Determine Correct Tax Liability (labeled “Audit Reconsideration).

  3. Closed Examination cases may be identified by AIMS ST 90. See 6209, Section 12 – Examination, 5-5 – Audit Information Management System (AIMS) - Status and Location.

    Caution:

    DO NOT input changes to Examination cases on CEAS.

  4. See IRM 4.10.15.1.6.1, User Support for RGS and CEAS, and IRM 4.10.15.3, Requesting Access to RGS and CEAS, for information concerning system access.

    Note:

    Users must login to CEAS through RGS at least every 45 days or the account will be disabled.

  5. Look up the SSN (including dashes) of the Closed Exam case.

    • Select the View Detail icon in the response displayed.

    • Select the “RAR” file.

    • Print the PDF file. Mail the PDF file to the taxpayer. See IRM 21.3.3.4.17, Outgoing Correspondence, and IRM 21.1.3.9, Mailing and Faxing Tax Account Information.

      Note:

      Fax the PDF file to the taxpayer if they request it.

    • The date listed is the date all the files were loaded to CEAS/RGS.

    • File names contain the actual use date.

    • Basic Examination Statuses and Letters:

      If ... Then ...
      AIMS ST 10, Letter 566, Initial Contact Letter (ICL), issued. This is the first letter sent to the taxpayer to notify them of an audit.
      AIMS ST 22, Letter 525, General 30 Day Letter, issued. It represents the second letter for the audit. The taxpayer is given a detailed computation of the amount of their tax and is informed of the courses of action they can take if they do not agree with the proposed adjustment.
      AIMS ST 24, Letter 3219C, Statutory Notice of Deficiency, issued. This notice is formally proposing the assessment. This is the taxpayer’s last opportunity to respond prior to assessment. Letter 555, Notification of Findings Based on Taxpayer Data - Tax Liability may be sent if the taxpayer responds to the statutory notice, but the information submitted was not sufficient to change liability.

  6. Literals:

    If the Account is ... Then ...
    On ACS (IDRS ST 22), Input "OADT, 00,ACSCES"
    Not on ACS (IDRS ST 22), Use ACTON to input ENMOD history item "ACSCEAS"

  7. Document AMS History with the CEAS information shared with the taxpayer.

    Example:

    Accessed CEAS/RGS. Mailed/Faxed TP Exam report for 30/201712.

    Example:

    Accessed CEAS/RGS. Based on CEAS data, advised TP to send in birth certificate for dependent.

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. Research IDRS to check for cross-reference IMF/BMF TINs. Ensure balance due and return delinquency modules, including cross-reference taxpayer identification numbers displayed on all MFs, are identified. Document full compliance check on AMS.

  2. Always review comments on AMS and IDRS 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 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 and exception for 2020 and 2021 tax returns.

  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 5.19.17.2.4(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 5.19.17.2.4(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 5.19.17.2.4(4)-(5), CNC Unable to Pay - Hardship.

    Exception:

    If the taxpayer states they have filed their 2020 or 2021 tax return, you can grant an IA even if a 2020 and 2021 tax return does not appear on IDRS or Master File after 10 weeks through December 31, 2022. This is due to delayed processing related to COVID-19.

  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 5.19.17.2.4(4)-(5), CNC Unable to Pay - Hardship.

    Exception:

    You can grant an IA even if a 2020 and 2021 tax return does not appear on IDRS or Master File after 10 weeks through December 31, 2022. This is due to delayed processing related to COVID-19.

  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. All balance due modules are in Notice Status (& ST 02): Advise the taxpayer to mail the missing return to the appropriate CSCO mailing address.

    2. Any balance due module is in ST 22 (& ST 03): Advise the taxpayer to mail the missing return to the appropriate ACSS Site based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping).

    3. For no balance due modules, ST 02 or ST 03, 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.

    4. 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. See IRM 5.18.1.6.1(1), ASFR TC 971 AC 143, 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:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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.

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

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  3. ≡ ≡ ≡

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  4. ≡ ≡ ≡ ≡ ≡

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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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 AMS or IDRS 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 20.1.3.3.1.1, Determining the Required Annual Payment

    • See IRM 20.1.3.4.1.1, 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 Certificate. They can use this to increase their withholding by having additional tax withheld each pay period.

    3. The taxpayer can calculate the proper withholding by using the Tax Withholding Estimator 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 by using the Tax Withholding Estimator 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 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(2), 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 Mail Procedures

  1. Collection clerks use IRM 5.19.16.5, SBSE Fast Scan Procedures Overview, to process incoming mail. "First Read" procedures are no longer used.

Unpostable Identification and Resolution

  1. Each IDRS transaction is subjected to a series of validity checks prior to posting to the Master File. Unpostables are transactions that cannot post to the IDRS Master File. A transaction is termed unpostable when it fails to pass any of the validity checks and is then returned to the campus for corrective action(s). See IRM 21.5.5, Unpostables.

  2. An unpostable transaction will appear in the Pending Transaction Section of CC TXMODA, along with a pending transaction identification code. The format includes the letter U followed by a three-digit numeric code (UNNN) called an unpostable code (UPC). A UPC may also be followed by a Reason Code (RC), a one-digit number between 0 and 9. The UPC and RC indicates the cause of the unpostable. UPC and RCs definitions are listed in Document 6209, Section 8B Master File Codes (Unpostable and Resequence), and the IAT Code Search Index (CSI) Tool.

  3. Employees are responsible for:

    1. Recognizing the reason for unpostable conditions,

    2. Preventing unpostable conditions when transferring payments and making changes to taxpayer's accounts, and

    3. Resolving unpostable conditions created by adjustment actions. Employees may encounter unpostables when answering taxpayer inquiries, or when his/her own adjustment case is returned for resolution. If after research, it is determined there is no corrective action to be taken to the unpostable condition, the open control base on CC TXMODA must be closed. See IRM 21.5.5.4.2, Resolving Unpostables.

  4. It is critical that all unpostable cases are worked within seven business days of receipt (or identification).

  5. Managers should refer to IRM 1.4.20, Filing & Payment Compliance Managers Handbook, for managerial review and oversight of unpostable resolution.

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

    • CSCO Manual Refund Processing

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 833-972-8965, the CSR may answer questions if they have the ability and expertise to do so; if not, ask the taxpayer to call 833-972-8965, 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 and Non 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 5.19.17.2.4.1(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 180 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 5.19.1.2.3 , 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 Code ASGNI/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:

    Primary taxpayer only, secondary taxpayer 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 their IA request cannot be processed. Inform the taxpayer that voluntary payments can be made on post-petition periods, however.

    Caution:

    This IA request is considered non processable. Do not input a TC 971 AC 043. See IRM 5.19.1.6.4.7, Pending IA Criteria.

  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 EEFax 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 EEFax 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:

    CSCO transfers or routes 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.

    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.

    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 IRM 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 EEFax, 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 based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping) 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 TXMODA 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.

      Caution:

      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:

      If ... Then ...
      ST 22 account,
      1. Document the address of real property owned by the decedent prior to death in AMS comments.

      2. If the decedent did not own real property, document the decedent’s last known address in AMS comments.

      3. Document that neither the fiduciary’s name nor address should be used when filing the NFTL

      4. Enter "FM10" twice when requesting the NFTL.

      5. See IRM 5.19.4.5, Notice of Federal Tax Lien Determinations and Filing Criteria, for NFTL procedures.

      Notice Status account,
      1. Document the address of real property owned by the decedent prior to death in AMS comments.

      2. If the decedent did not own real property, document the decedent’s last known address in AMS comments.

      3. Enter decedent’s name and the appropriate address on Form 12636, Request for Filing or Refiling Notice of Federal Tax NFTL, when filing the NFTL

      4. 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 based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping). 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 EEFax the documents during the call, ask them to EEFax 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 EEFax 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 unreversed TC 520 with cc 80 or 81 present Prepare Form 4442, Inquiry Referral, with attachments/documents and EEFax 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 EEFax 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 5.19.1.5.14 LLC 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 2200
      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 No date of death on CC INOLE Input CC STAUP 2200

      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 "TOS0, 21,CNC" ) 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 IRM 5.19.17.2.6, Decedent and Decedent Estates, and IRM 5.19.1.6.7, Mirroring Accounts.

    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, 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. See IRM 3.13.5.118.9 , Inputting Name Changes for Deceased Taxpayers. Update all cross reference TINs as appropriate.

    If ... Then ...
    The taxpayer is individual (FS1, FS3, FS4, or sole proprietor)
    • Add "DECD" to the name line (e.g. JOHN BUNTING DECD)

    • If a fiduciary is present, add "C/O" to the fiduciary’s name in the second name line.

      Example:

      JOHN BUNTING DECD
      C/O JANE DOVE

    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:

    ROBERT DECD AND JILL FALCON
    C/O JILL FALCON

    Exception:

    If a fiduciary is present, enter the fiduciary name as C/O on the second name line.

    Example:

    WILLIAM DECD AND MARY HAWK
    C/O ANN FINCH

  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. See IRM 5.5.1.7, Fiduciary Authority.

    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 EEFax the information while on the call. If unable to secure by EEFax:

    1. ST 22 accounts: Based on the address and BOD of the account, provide the appropriate ACSS mailing address based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping). 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 TFRP Liaison.

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 26 CFR 3301.7701-2 . Therefore, a TFRP 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 5.19.17.2.5, Incarcerated Taxpayers, for instructions to process cases for incarcerated taxpayers.

Disaster/Emergency Relief

  1. When a disaster or emergency occurs, the President may declare the state a federal disaster area under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

  2. A list of regions (such as counties, parishes or other political subdivisions) impacted by a designated disaster is compiled and provided by the Federal Emergency Management Agency (FEMA). The IRS then identifies the corresponding ZIP Codes for disaster processing purposes, and provides systemic relief for taxpayers located within a covered disaster area. The IRS Disaster Assistance Program website lists IRS assistance determinations by year.

  3. Compliance Relief: IDRS displays a disaster-related Freeze Code (-O or -S) on impacted accounts for the duration of the disaster relief time frame.

    1. -O Freeze: The -O Freeze is used for significant major disasters, and is generated by a TC 971 AC 087 on CC ENMOD. As a general rule, no compliance action is taken until after the relief time frame has expired. These actions include but are not limited to: sending an LT11, Final Notice -- Notice of intent to levy and your notice of a right to a hearing (sent certified, return receipt requested); issuing a levy; defaulting an IA; or filing an NFTL.

    2. -S Freeze: The -S Freeze is used for other federally declared disaster areas, and is generated by a TC 971 AC 688 on CC ENMOD. Impacted taxpayers are granted additional time to perform time sensitive actions. If a -S freeze is present, enforcement activities may be suspended on a case-by-case basis. These taxpayers should be provided an opportunity to defer action for a reasonable period of time.

  4. Taxpayers who reside outside the FEMA ZIP Code list may be able to self-identify that they were affected by the disaster, if they meet one of the established definitions of an affected taxpayer as listed in IRM 25.16.1.3(3), Identification of "Covered Disaster Area" , Postponement Period and "Affected Taxpayers" .

  5. Follow specific procedures in place for the disaster or emergency. Specific procedures will be present on the IRS Disaster Assistance Program website, and are also generally distributed via email. See IRM 25.16.1, Disaster Assistance and Emergency Relief, for further explanations of actions required.

    1. Follow IRM 25.16.1.8.2, -O Freeze, and IRM 21.5.6.4.30, -O Freeze, for those taxpayers affected by an -O Freeze, including taxpayers who self-identify.

    2. Follow IRM 25.16.1.8.1, -S Freeze, and IRM 21.5.6.4.37, -S Freeze, for those taxpayers affected by a -S Freeze, including taxpayers who self-identify.

  6. Collection activity potentially adverse to the taxpayer requires managerial approval.

  7. Wage levies on affected taxpayers must be released. These cases will reflect ST 60 with an ALN XX08. A TC 971 AC 898 will also appear on affected modules.

  8. Managerial approval is not required (unless required by current IRM procedures) for other actions agreed to by the taxpayer, such as IAs.

  9. Managerial approval also is not required when the taxpayer or third party does not need to be contacted, e.g. determining a case is currently not collectible or making adjustments.

  10. Disaster processing for IAs: For accounts with either a -O or -S Freeze:

    • CP 521, Installment Agreement Reminder Notice, will continue to be issued, and DDIA payments will continue to be processed throughout the compliance activity suspension period (unless otherwise announced).

      If ... Then ...
      The taxpayer wants to stop (skip) a single DDIA payment,
      • FA employees should follow IRM 5.19.1.6.4.13.2, Taxpayer Problems with DDIA;

      • ACS, ACSS and CSCO employees should follow IRM 5.19.1.8.6.1, Requests to Skip a Direct Debit Installment Agreement (DDIA) Payment.

      The taxpayer wants to stop multiple DDIA payments, The taxpayer will need to either contact the Service each month before the monthly payment request is sent to the bank, or contact their bank to suspend payments for the desired period.
      Payments were suspended at the bank, The taxpayer will need to inform their bank to allow debits to resume at least two weeks before their next payment is due to avoid possible default on their IA, once the disaster freeze expires.

      Note:

      Please note that penalties and interest will continue to accrue on any unpaid balance.

    • However, missed payments during this period will not cause an IA to default (or be counted as a skip). Therefore, CP 523, Installment Agreement Default Notice, will not be issued during the compliance activity suspension period

  11. Enforcement action will not be initiated if a deadline established prior to the disaster has been missed.

  12. During and at the end of the compliance suspension period, taxpayer contacts within the designated disaster area must be made with caution and extreme sensitivity to the taxpayer’s personal circumstances. Stress and fatigue are factors needing consideration, even in instances where taxpayers did not experience any personal, monetary or physical damage from the disaster.

    1. Begin with an assessment of the impact of the disaster on the taxpayer. This should provide an opportunity to defer action, as needed, for a reasonable period. If an affected taxpayer requests additional time to provide necessary financial statement or substantiation, it should be granted.

  13. For correspondence requests from impacted taxpayers initiated prior to the disaster, suspend processing until after the expiration of the disaster declaration unless confirmed via contact with the taxpayer that they want to proceed. Leave detailed notes on AMS concerning the type of correspondence, the reason for the suspense, and if you attempted to contact the taxpayer to see if they wanted you to continue processing.

  14. 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 5.19.1.3.2.3(2)(e), Taxpayer Advocate Service (TAS), 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.

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. section 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 section 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 section 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, or S = Secondary taxpayer.

    3. Forward the incoming correspondence, a copy of Letter 289C, Approval of Military Deferment, and a CC TXMODA 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 TXMODA 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 5.1.7.13.1, 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 website. 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 https://dawson.ustaxcourt.gov/.

    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 21.6.6.2.21.2.1, KITA/KIA Procedures for All Functions.

  2. The literal "KITA" will appear on CC ENMOD, CC IMFOLE, CC TXMODA 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 TXMODA 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 5.19.1.3.5(4), 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 5.1.21.13.3, 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 5.1.21.4.1(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.

  3. 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.

  4. Campus Case Actions - Restitution cases will not be worked by Campus employees, except as follows:

    1. 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.

    2. 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/collection/ceaso/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. For tax years 2014 – 2018, individuals must have minimum essential health coverage (known as minimum essential coverage (MEC)), have a coverage exemption, or report a shared responsibility payment (SRP). The SRP is the penalty imposed if an applicable individual in a tax household lacks MEC for any month. The SRP is the penalty imposed if an applicable individual in a tax household lacks MEC for any month.

    Note:

    Pursuant to Section 11081 of PL 115-97, for months beginning after December 31, 2018, the amount of the SRP is reduced to zero. IRM 21.8.1.27.4.3(2), Shared Responsibility Payment.

  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. See IRM 21.6.4.4.20.3, Shared Responsibility Payment Overview, for additional information.

    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 5.19.17.2.13, 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 its 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 21.4.5.5.5, 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.

    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.

  2. Passport Certification procedures are located in IRM 5.19.25, Passport Program.

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 20.1.8.4, 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 "Not applicable"
    TXMODA TXMODAxx-xxxxxxx
    74 001 201212
    "Not applicable"
    MFREQ MFREQCxx-xxxxxxx
    76 201210 NAME 001
    (if CC TXMODA 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. The Taxpayer First Act, signed into law on July 1, 2019, amended the criteria for assigning accounts to a PCA and expanded the exclusion categories.

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.

      Caution:

      IRS employees must not contact the PCA directly. If an employee has a question about an account assigned to a PCA, then send an inquiry via email to *SBSE PDC Questions, with the subject heading "PDC Questions" .

    • 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 three PCAs:

    • CBE Group in Waterloo, Iowa

    • Coast Professional in Geneseo, New York

    • ConServe in Fairport, 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 the Internal Revenue Service Private Collection Agency Policy and Procedures Guide, Fair Debt Collection Practices Act and are also subject to various provisions of IRC 6306 and IRC 6103.

    Caution:

    IRS employees must not contact the PCA directly. If an employee has a question about an account assigned to a PCA, then send an inquiry via email to *SBSE PDC Questions, with the subject heading "PDC Questions" .

Private Debt Collection Account Identification
  1. Employees can identify an account assigned to a PCA and related activity on IDRS with the following transaction code:

    • TC 971 AC 054 – Account assigned to a PCA

  2. Employees can identify an account that is no longer assigned to a PCA on IDRS with the following TCs:

    • TC 971 AC 459 – Account returned to IRS by PCA

    • TC 972 AC 054 – Account recalled by IRS

    Note:

    If the above TCs are present on an account (either posted or pending), it is no longer assigned to PDC. Do not advise these taxpayers to contact the PCA. Employees should assist these taxpayers following normal IRM 5.19.1, Balance Due, procedures.

  3. 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
    05 Coast Professional

  4. PDC-IND & PDC-CD are two digit codes to indicate involvement with the PDC program and can be found on CC TXMODA or IMFOLT respectively.

    PDC-IND or PDC-CD Definition
    00 or blank Not involved in PDC.
    01 Module assigned to PDC.
    04 Manual block.
    16 PCA Payment Agreement

  5. PDC Authentication ID is a unique 10-digit taxpayer authentication number (TAN) 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 two (2) years have passed since the assessment 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.

    • Involves a taxpayer that is receiving Supplemental Security Income / Social Security Disability Insurance (SSI/SSDI).

    • Individuals whose AGI is below 200% of the applicable poverty level.

    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 5.19.1.2.3 , 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(1), 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 https://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 website: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(1), 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:

      • During normal business hours: 800-366-4484

      • After normal business hours: 800-589-3718

        Note:

        This number reaches an answering service which answers calls from all locations in the United States 24 hours a day 7 days a week. The answering service will contact the on-call TIGTA agent.

      • Fax: 202-927-7018

    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.

    Note:

    PCA’s refer to IAs as "Payment Arrangements" (PA)

    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 states they don’t agree with the liability, Follow procedures in IRM 5.19.1.4.3, Determine Correct Tax Liability, AND advise the taxpayer they must work directly with the PCAto pay (resolve) their remaining account balance as long as account remains assigned to thePCA.
    The taxpayer requests account information,
    1. 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)

    2. Use TDS when appropriate. TDS delivers tax account and return information to the taxpayer with an appropriate cover letter. See IRM 21.2.3.4, TDS Transcript Delivery Methods.

    3. Advise the taxpayer that they must work directly with thePCAto pay (resolve) their account balance as long as account remains assigned to thePCA.

    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:

      • During normal business hours: 800-366-4484

      • After normal business hours: 800-589-3718

        Note:

        This number reaches an answering service which answers calls from all locations in the United States 24 hours a day 7 days a week. The answering service will contact the on-call TIGTA agent.

      • Fax: 202-927-7018

    Exception:

    If the TC 971 AC 054 is reversed by a posted or pending TC 971 AC 459 or TC 972 AC 054, then the account is no longer assigned to PDC and the case should be worked normally. See IRM 5.19.1.5.21.2.1, Private Debt Collection Account Identification.

  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 IRC 6320, IRC 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 5.19.25.12, 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 5.19.25.10, 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 5.19.25.10, 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 a PA on a PDC account, do not take case actions to interfere with the taxpayer’s PA with their PCA. See IRM 5.19.1.5.21.6, Payment Arrangements (PA) 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.

Payment Arrangements (PA) Granted by Private Collection Agencies
  1. PCAs may grant Payment Arrangements (PA) 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 PAs 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 PA.

  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 PA 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.

  6. You may receive contact from a taxpayer where they state their Payment Arrangement established with the PCA Performant or Pioneer ended. The IRS contracts with Performant and Pioneer expired on September 22, 2021 and all Payment Arrangements with these two PCAs ended. If the taxpayer is requesting an IA, and their account was previously assigned to Performant or Pioneer, refer the case to the Andover Campus Collection for expedited processing. Refer these case by: Preparing and faxing a Form 4442, Inquiry Referral, to 855-277-9110 along with any other supporting documentation.

    Caution:

    Do not refer an account that is currently assigned to another PCA.

    Note:

    Andover Campus Collection employees working these inquiries can grant IAs with similar terms as the PA that ended without requiring a financial statement and no new NFTL determination is required. Employees can identify these cases by the presence of a TC 972 AC 054 (recalling the case from the PCA) along with a TC 971 AC 163 (reversing the PA) with either 03 or 04 in the Misc field representing the PCA ID.

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 5.19.5.4.11.8, 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 5.19.1.3.4.3.7, 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 5.19.5.4.11.8.3, 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 5.19.1.3.4.3.7, 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.

CSCO Manual Refund Processing

  1. This IRM subsection provides general manual refund procedures for processing Form 5792, Request for IDRS Generated Refund (IGR), initiated and approved by Field Collection submitted to Philadelphia CSCO for IDRS input.

  2. Philadelphia Service Center (PSC) is the centralized receiving site for all Field Collection manual refunds (Form 5792). Manual Refunds are sent via secure e-mail to the CSCO organizational mailbox, *SBSE PSC CSCO Man Ref, for processing.

  3. Specific instructions for completion of Form 5792, Field Collection employees are responsible to complete the items located in IRM Exhibit 5.1.12-2, Field Collection Processing of Form 5792.

  4. CSCO employees receive Form 5792 from the organizational mailbox. Upon receipt they are required to verify the amount of the refund.

  5. CSCO personnel will ensure the Field Approving Official who signs the refund is on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function.

  6. Philadelphia CSCO employees follow procedures found in IRM 21.4.4.5, Preparation of Manual Refund Forms.

  7. CSCO employees will generate another Form 5792 through the IAT tool. They will enter all data in the Form 5792, including the remarks section.

  8. CSCO will email the IAT output version of the Form 5792 for review, approval, and input of the digital signature by the CSCO approving official.

    Note:

    The CSCO approving official signature represents the processing of the refund only. The CSCO approving official did not work the case or make determinations concerning the need to issue the manual refund.

  9. The CSCO approving official provides a valid digital signature and submits via e-mail to the designated Accounting organizational mailbox *W&I SP Manual Refunds Ogden.

  10. CSCO will maintain the Form 5792 received from Field Collection, and Accounting will keep the generated IAT version for a period of five years per IRM 3.17.79.3.2.1, Uploading Forms 3753 and Forms 5792 (PDF Copy) onto the Manual Refund Project SharePoint Site.

  11. CSCO will correct and re-submit Form 5792 rejections due to CSCO input errors only.

  12. CSCO employees who input CC RFUNDR must open an IDRS control base and monitor on IDRS according to IRM 21.4.4.6.1, Monitoring Manual Refunds.

  13. Refer to the following IRMs for additional guidance:

    • IRM Exhibit 2.4.20-12, Description of Line Numbers

    • IRM 3.17.79.4.1, Case Review and Command Code REFAP (Refund Approval)

    • IRM 5.1, Field Collecting Procedures

    • IRM 5.1.12.20, Manual Refund

    • IRM 5.1.12.20.1, Manual Refund Procedures

    • IRM 5.11.2.3.2.1, Wrongful levy

    • IRM 20.2, Interest

    • IRM 20.2.4.7, Refunds

    • IRM 21.4.4, Manual Refunds

    • IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI)

Taxpayer Contact Regarding Notices for Deferred Social Security Tax

  1. This subsection provides guidance for responding to taxpayer contacts regarding receipt of notices for deferred Social Security (SS) tax, which include Letter 3064C , Settlement Notice for Deferred Social Security Tax, and (IMF) CP 56V / (BMF) CP 256V, CARES Act SS Tax Deferral Reminder Notices.

    Caution:

    If the deferred amount is paid in full by the due date and there is no other tax due on the module or assessed penalties, the module will be in ST 10/12.

  2. Background: In May 2021, IRS began mailing settlement notices via Letter 3064C to remind taxpayers with deferral amounts that although the deferral amounts are not yet due, they remain liable for any and all amounts that are properly deferred. The reminder explains the liabilities have been assessed and penalties and interest may result if the deferral amount is not paid by the required due dates. In October 2021, IRS began mailing CP 56V / CP 256V as the first courtesy reminder notice that taxpayers may have an amount due on December 31, 2021 if they have deferred the payment and deposit of certain social security taxes incurred from March 27, 2020 to December 31, 2020 under section 2302 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

  3. Refer to the following table to provide the taxpayer with an explanation regarding the notice they received.

    If taxpayer received... Then...
    Letter 3064C, Settlement Notice for Deferred Social Security Tax
    1. Explain to the taxpayer this is a reminder that they still remain liable for the deferred tax even though the amount(s) is not yet due. In October and November courtesy reminder notices may be issued; however, taxpayers are responsible for timely paying the deferred amounts when due regardless of this courtesy reminder.

    2. See paragraph (9) below if the taxpayer states they would like to pay the deferred amount early, or paragraph (10) if they explain they will not be able to full pay the amount(s) by the due date(s).

    CP 56V or CP 256V, CARES Act SS Tax Deferral Reminder Notice
    1. Explain to the taxpayer this is a reminder that Social Security taxes deferred under the CARES Act Section 2302 are due by December 31, 2021 and December 31, 2022.

      Note:

      The amount due for December 31, 2021 will be one-half of the amount they were eligible to defer, with the remainder due December 31, 2022. The amount eligible to defer is generally any deposit of the employer share of social security taxes due during the period beginning on March 27, 2020 and ending December 31, 2020 and payments of the tax imposed on wages paid during that period for employers and Schedule H filers, and/or one-half of the social security taxes imposed on net earnings from self-employment income for the period beginning on March 27, 2020 and ending December 31, 2020 for self-employed individuals. Any payments or deposits made before December 31, 2021, are first applied against the payment due on December 31, 2021, and then applied against the payment due on December 31, 2022.

    2. See paragraph (9) below if the taxpayer states they would like to pay the deferred amount early, or paragraph (10) if they explain they will not be able to full pay the amount(s) by the due date(s).

  4. Deferral Due Dates:

    • Employee’s portion of deferred Social Security (SS) tax: Under Notice 2020-65 and applicable modifications under Notice 2021-11, if an employer defers employee Social Security taxes (or Tier 1 Railroad Retirement taxes), the employer must withhold and pay the taxes that were deferred ratably from wages or compensation paid between January 1, 2021 and December 31, 2021.

      Note:

      If the deferred tax is not full paid by December 31, 2021, the failure to pay penalty and applicable interest will begin to accrue on the unpaid amount on January 1, 2022. No FTD penalty will be charged on the employee’s portion of deferred SS tax.

    • Employer’s portion of deferred SS tax: Under Notice 2020-22, Section 2302 of the CARES Act allows employers to defer the deposit of the employer's share of Social Security taxes and certain Railroad Retirement taxes that would otherwise be due on or after March 27, 2020 through December 31, 2020 and payment of the taxes imposed on wages paid during that period. One-half of the eligible deferred employer’s share of Social Security tax is due by December 31, 2021, and the remainder is due by December 31, 2022.

      Note:

      If any part of the employer’s portion of SS tax is paid late, the FTD penalty will be charged on the total deferral amount, including amounts already paid after the return due date but before the December 31st installment due date(s). The failure to pay penalty and interest will begin to accrue on the unpaid amount on January 1st following the December 31st installment due date(s).

    Reminder:

    If the deferred amount is paid in full by the due date and there is no other tax due on the module or assessed penalties, the module will be in ST 10/12.

  5. How to Identify IMF and BMF Modules with Deferred Taxes: The Service is administering deferred payments of Social Security taxes for 2020 by posting a "false credit" with a TC 766 Credit Reference Number (CRN) 280 for the combined amount of employee and employer deferred taxes. Any payment/credit applied towards the deferred tax will generate a reversal of the "false credit" with a TC 767 CRN 280 for the amount of the payment/credit.

  6. How to Determine the Eligible (or maximum) Deferral Amount: The eligible amount of employer’s share of social security taxes that can be deferred for the tax period is the smaller of

    • the employer’s share of Social Security tax, or

    • the total taxes after adjustments (e.g., Form 941 line 10, Form 943 line 11, etc.) minus any applicable tax credit for increasing research activities (from Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities) minus total deposits, including overpayments applied from a prior year or amended form.

  7. How to Compute the Amount Due for the Installment Due Dates: The deferred deposits of the employer’s share of Social Security tax must be paid by

    • December 31, 2021 (50 percent of the eligible deferred amount), and

    • December 31, 2022 (the remaining amount)

    Example:

    If an employer was eligible to defer $20,000 for the payroll tax deferral period, but paid $15,000 of the $20,000 and deferred $5,000 for the payroll tax deferral period, the employer does not need to deposit any additional amount by December 31, 2021, since 50% of the eligible deferred amount (or $10,000) has already been paid. The employer must pay the remaining $5,000 by December 31, 2022.

    Example:

    The maximum amount an employer was eligible to defer for the third quarter of 2020 is $20,000. The employer deposited $5,000 during the quarter and reported a deferred amount of $15,000. The employer must pay $5,000 by the first installment due December 31, 2021 (half of the eligible deferred amount is $10,000 minus the $5,000 already paid), and the remaining $10,000 is due by December 31, 2022.

  8. Resources To Find Deferred Tax Information:

    IMF BMF
    TXMODA, IMFOLT
    • TC 766 CRN 280 with deferral amount

    • TC 767 CRN 280 (reversal of deferral amount)

    Note:

    TXMODA displays the "MAXDEFER-CMPTR-AMT" field, which is the total maximum (eligible) deferral amount calculated by adding line 8b of Schedule H (primary and secondary) and line 26 of Schedule SE (primary and secondary)

    TXMODA, BMFOLT
    • TC 766 CRN 280 with deferral amount

    • TC 767 CRN 280 (reversal of deferral amount)

    Note:

    Currently TXMODA and BMFOL do not display the maximum (eligible) deferral amount for BMF modules. Also, the employee’s portion of SS Tax deferral and employer’s portion of SS tax deferral is combined as one TC 766 CRN 280. Refer to BMFOLR or view the tax return to see the actual portions of deferred employer share of Social Security tax and employee share of Social Security tax that was included with the TC 766 CRN 280

    IMFOLM fields:
    • Unpaid Deferred Social Security Tax Due By 12/31/2021

    • Unpaid Deferred Social Security Tax Due By 12/31/2022

    BMFOLM fields:
    • Employee Share of SS Tax Deferred Due 12/30/2021

    • The Deferred SS Tax Due 12/31/2021

    • The Deferred SS Tax Due 12/31/2022

    "This space intentionally left blank" BMFOLR fields:
    • DEFER SECT 2302

    • DEFR EE FICA AMT

    TRDBV
    • Form 1040, line 31

    TRDBV
    • Form 941, line 13b total deferred, line 24 EE portion of SS tax that was included on line 13b

    • Form 943, Line 14b (ER SS tax) and 14c (EE SS tax)

    • Form 944, line 10b (ER SS tax) and 10c (EE SS tax)

    • Form CT-1, line 21 ER SS tax) and 22 (EE SS tax)

    • Form 1041, line 26 (transferred from Schedule G, line 18)

    Note:

    If the taxpayer disagrees with the amount due, See IRM 5.19.1.4.3, Determine Correct Tax Liability.

  9. Repayment of the Deferred Taxes:

    If... Then...
    The taxpayer asks about paying the deferred amount before the due date Advise the taxpayer they may pay the deferred amount anytime prior to the due date.
    The taxpayer asks how to make payments for deferred amounts Explain that taxpayers can make the deferral payments through the EFTPS or by credit or debit card, money order or with a check. Visit IRS.gov, Paying Your Taxes, and click on the payment method to find instructions for the specific type of payment including what to include on a check or money order and where to mail the payment.
    Reminder:
    • Payments for the deferred tax must be separate from other tax payments because IRS systems won't recognize the deferral payment if it is with other tax payments or sent as a deposit.

    • Separate payments must be made for each tax period with deferred Social Security tax.


    Individuals making deferred Social Security tax payments in EFTPS should select 1040 US Individual Income Tax Returns and Deferred Social Security Tax for the type of payment.
    Employers will select deferral payment and then change the date to the applicable tax period for the payment. Employers can visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.

  10. Unable to Pay the Deferred Tax by the Due Date: Advise the taxpayer to pay as much as they can as often as they can to avoid additional FTP and interest charges. Refer to the table below, if the taxpayer states they are unable to full pay the deferred tax.

    If the taxpayer states... And the contact is... Then...
    They cannot pay the deferred amount BEFORE the required payment due date and systemic reversal of the deferral amount has not yet occurred

    Note:

    A payment plan cannot be set up before the false credit (TC 766 CRN 280) has been reversed with a TC 767.

    The taxpayer must wait until after the deferred payment due date and the "false credit" for the deferral has been reversed via a TC 767 CRN 280. The taxpayer should follow instructions in the balance due notice.
    They cannot pay the deferred amount AFTER the required payment due date and systemic reversal (TC 767 CRN 280) for the deferral amount due has occurred The taxpayer may contact IRS via phone or visit IRS.gov, Paying Your Taxes to review options for a payment plan, offer in compromise or temporary delay in collection until their financial situation improves.
    They cannot pay the deferred amounts by the 12/31/2021 and 12/31/2022 due dates AFTER the 12/31/2021 due date and deferral reversal (TC 767 CRN 280), but before the second deferral due date of 12/31/2022 Explain that a payment arrangement may be considered for the deferral amount due with the first installment (12/31/2021). However, the taxpayer will need to contact IRS again to make payment arrangements for the remaining deferral amount (due 12/31/2022) once the due date is past and deferral reversal is showing.

    Note:

    If the taxpayer disagrees with the amount due, See IRM 5.19.1.4.3, Determine Correct Tax Liability.

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 180 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 to 180 days. See IRM 5.19.1.6.3, Short Term Payment Plan Within 180 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 5.19.17.2.4.1, 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 2200 which generates a final notice to the taxpayer and sends the account to ACS.

    Note:

    For IMF accounts, the IRS is prohibited from filing a lien or levy to collect the individual SRP. See IRM 5.19.1.5.16.1, Individual Shared Responsibility Payment.

  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).

    Exception:

    FA employees, follow IRM 21.3.4.13, Balance Due Accounts.

  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 20.2.1.4, Normal and Restricted Interest, IRM 20.2.1.4.2, Manual Calculation of Interest, and IRM 21.5.6.4, Freeze Code Procedures.

  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 180 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 or IRS Direct Pay payments, Compute the payoff to the date the taxpayer states they will authorize the payment.
    For PayNearMe payments, Compute the payoff to three days from the anticipated payment date.
    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 or anticipated/authorized payment 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 180 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 180 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.

  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 180 day Short Term Payment Plans if previously allowed the maximum days. A pre-assessed Short Term Payment Plan up to 180 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 20.2.1.4, Normal and Restricted Interest, IRM 20.2.1.4.2, Manual Calculation of Interest, and IRM 21.5.6.4, Freeze Code Procedures.

  5. All actions taken on the account must be clearly documented on AMS. Refer to IRM 5.19.1.2.4, Documenting Account Actions.

    If ... Then ...
    All modules are in Notice Status, Input Short Term Payment Plan on IDRS. See
    • Exhibit 5.19.1-4, IDRS Input of Short Term Payment Plans, 180 Days or Less, CC IAORG for ACS/ACSS/CSCO/FA, and

    • Exhibit 5.19.1-5, IDRS Input of Short Term Payment Plans, 180 Days or Less, CC IAREV for ACS/ACSS/CSCO/FA.

    Any modules are in Status 22, Input Short Term Payment Plan on ACS. Move the case to the appropriate ACS inventory for the payment to post.

    Example:

    The taxpayer states they can full pay within 90 days and there are balance due modules in ST 22 or 24 and there have been no prior Short Term Payment Plans 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 90th day requesting an additional 90 days to full pay; you may extend for 90 additional days. Do not allow more than the maximum of 180 days, this does not include the additional seven days for internal processing of the payment.

  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. Existing Short Term Payment Plans may be revised by adding new modules or allowing additional time, provided the total time to full pay does not exceed 180 days from the original request date.

  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 180 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. A new Short Term Payment Plan of up to 180 days may be granted onlyafter all modules from any prior payment agreement have been full paid.

    Note:

    You must consider all previously granted Short Term Payment Plans.

    Example:

    A 180-day Short Term Payment Plan is granted for a taxpayer’s 2016 and 2017 Form 1040 balances due. They full pay their liabilities within 180 days as promised. The taxpayer subsequently files a 2018 Form 1040 with a balance due and requests a new 180-day Short Term Payment Plan. The taxpayer may be allowed up to 180 days to pay off their new balance due.

    Caution:

    ACS, ACSS or FA do not establish up to 180 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. ACS, ACSS, CSCO or FA will establish any up to 180-day Short Term Payment Plans when all modules are in notice status using CC IAGRE.

  10. If the taxpayer does not qualify for a Short Term Payment Plan of up to 180 days, determine if the taxpayer meets IA criteria. See IRM 5.19.1.6.4, Installment Agreements (IAs).

  11. 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 180 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.

  12. When working correspondence, the date used to determine the start of the maximum Short Term Payment Plan is within 180 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 180 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.

  13. 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 180 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.

  14. 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, OOB 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 180 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 "TOE3,201,FLPY" .

    4. Release levies unless they are a condition of the Short Term Payment Plan for up to 180 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, OOB 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 (13) above.
    ST 53 or 23, Not on IDRS (on CC IMFOLT/BMFOLT but not IDRS), IRM 5.19.1.6.4.5, Account Statuses Affecting IAs.

    Caution:

    Input the IA before CC MFREQ or the computer will not allow CC IAGRE input.

    Notice Status, IMF, OOB or BMF in business non trust fund,
    1. Input the Short Term Payment Plan using CC IAGRE.

  15. AMS must be documented with the terms of filing and payment commitments; see IRM 5.19.1.2.4, Documenting Account Actions. Input the Short Term Payment Plan to IDRS using either Exhibit 5.19.1-4, IDRS Input of Short Term Payment Plans, 180 Days or Less, CC IAORG for ACS/ACSS/CSCO/FA, or Exhibit 5.19.1-5, IDRS Input of Short Term Payment Plans, 180 Days or Less, CC IAREV for ACS/ACSS/CSCO/FA.

  16. 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.

    Caution:

    If you receive an IA request from a taxpayer where they state their payment arrangement with former Private Collection Agency Performant or Pioneer has ended due to the recent contract expiration, refer the case to the Andover Campus Collection for expedited processing. See IRM 5.19.1.5.21.6, Payment Arrangements (PA) Granted by Private Collection Agencies.

    Note:

    If the IA was requested on Form 9465, Installment Agreement Request, enter "94" in the XX position of the ALN, except for DDIAs. See Exhibit 5.19.1-9, ALNs.

    Note:

    Form 433-H, Installment Agreement Request and Collection Information Statement, is a new hybrid form that was introduced in May 2019. It combines an IA request with a Collection Information Statement (CIS), and is intended for IMF taxpayers who are wage earners only who do not meet SIA criteria.

  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.

    Exception:

    If a taxpayer requests an IA on Form 433-H, Installment Agreement Request and Collection Information Statement, and the proposed IA meets SIA criteria, input of the financial information is not necessary. Input the IA as agreed to, document AMS with SIA information as described above. However, if the request is for a DDIA, the Form 433-Hmust be retained. Follow procedures in IRM 5.19.1.6.4.13, DDIA.

  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:

      A taxpayer’s total outstanding liability is $200, and they request an IA for $10 per month. Compliance Suite shows that the proposed payment will full pay in three (3) years. If the account meets the remaining requirements, the proposed IA must be granted as a Guaranteed IA.

    1. Guaranteed IA CIS Requirements: A financial statement is not required.

    2. Guaranteed IA Managerial Approval Requirements: Managerial approval is not required.

    3. Guaranteed IA NFTL Determination Requirements: A NFTL determination is not required.

    4. Guaranteed IA ALN: A "36" should be entered in the YY position of the ALN, as for any SIA $25,000 and under. See Exhibit 5.19.1-9, ALNs.

  9. SIA $25,000 and under: Type of entity:

    • IMF

    • OOB Sole Proprietor

    • BMF Non-Trust Fund

    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.

    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.

    1. SIA $25,000 and under CIS Requirements: A financial statement is not required.

    2. SIA $25,000 and under Managerial Approval Requirements: Managerial approval is not required.

    3. SIA $25,000 and under NFTL Determination Requirements: A NFTL determination is not required.

    4. SIA $25,000 and under ALN: Normally, "36" should be entered in the YY position of the ALN; however, see Exhibit 5.19.1-9, ALNs, for further information on ALNs.

    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.

    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.

    1. SIA over $25,000 CIS Requirements: A financial statement is not required.

    2. SIA over $25,000 Managerial Approval Requirements: Managerial approval is not required.

    3. SIA over $25,000 NFTL Determination Requirements:

      If ... Then ...
      IA is established as a DDIA or PDIA, NFTL determination is not required. (Taxpayer must authorize DDIA or PDIA before IA is established to qualify.) See IRM 5.19.1.6.4.13, DDIA, and IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement.
      Regular IA, NFTL determination is required. For pre-filing considerations, see IRM 5.19.4.5.1, Notice of Federal Tax Lien Filing Determinations. 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.

      Exception:

      If the taxpayer’s liability is only for tax year 2019 and the module is still in Notice Status, a NFTL determination is not required.

    4. SIA over $25,000 ALN: Normally, "37" should be entered in the YY position of the ALN; however, see Exhibit 5.19.1-9, ALNs, for further information on ALNs.

  11. Non-Streamlined IA (NSIA) or Regular IA - IMF & OOB Sole Proprietors: NSIA is considered when the taxpayer cannot qualify for a SIA. CSCO, ACS, ACSS and Field Assistance employees are authorized to establish NSIAs. The agreement must be fully paid prior to the CSED. See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.13, Campus Procedures for Securing Financial Information.

    1. NSIA CIS Requirements:

      If ... Then ...
      AAB (CC SUMRY) is up to:
      • $100,000 (FA),

      • $250,000 (ACS, ACSS, and CSCO),

      A financial statement is not required, but:
      • AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED, and

      • A history item must be input on CC ENMOD indicating "NOCIS".

      AAB (CC SUMRY) is between $250,001 and $999,999 (ACS/ACSS),

      Note:

      See IRM 5.19.1.2.6.3.4, Installment Agreements - ACS and ACSS Employees, for additional information.

      A financial statement is required. See 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 5.19.13.3.4, Making the Collection Decision.

      Note:

      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 amounts up to (total of all modules) $25,000 including previous modules included in the IA.

    2. NSIA Managerial Approval requirements:

      If ... And ... Then ...
      AAB (CC SUMRY) is $25,000 or less, "This space intentionally left blank." Managerial approval is not required, but AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED.
      AAB (CC SUMRY) is between $25,001 and $50,000,
      • There is no history of IA defaults for any module to be included in the IA, and

      • No modules are in ST 22 or ST 24.

      Managerial approval is not required, but AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid by the CSED.
      AAB (CC SUMRY) is between $25,001 and $50,000,
      • There is history of IA defaults for any module to be included in the IA, or

      • One or more modules are in ST 22 or ST 24.

      Managerial approval is required.
      AAB (CC SUMRY) is more than $50,000, "This space intentionally left blank." Managerial approval is required.

      Note:

      See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.1.6.4.8, IA Managerial Approval.

    3. NSIA NFTL Determination Requirements: A NFTL determination is required. For pre-filing considerations, see IRM 5.19.4.5.1, Notice of Federal Tax Lien Filing Determinations. 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.

      Exception:

      If the taxpayer’s liability is only for tax year 2019 and the module is still in Notice Status, a NFTL determination is not required.

    4. NSIA ALN: Normally, "09" should be entered in the YY position of the ALN for NSIAs; however, see Exhibit 5.19.1-9, ALNs, for further information on ALNs.

  12. Partial Pay IA (PPIA) - IMF & OOB Sole Proprietors: 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. See IRM 5.19.1.2.6.3, Installment Agreements, for dollar criteria. See IRM 5.19.1.6.5, PPIA, for PPIA procedures, 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. (Taxpayer must authorize DDIA or PDIA before PPIA is reinstated to qualify.) See IRM 5.19.1.6.5.3.2, Revising/Reinstating PPIAs.

    1. PPIA CIS Requirements: A financial statement is required. See IRM 5.19.13, Campus Procedures for Securing Financial Information.

    2. PPIA Managerial Approval Requirements:

      If ... Then ...
      AAB (CC SUMRY) is $25,000 or less, Managerial approval is not required.
      AAB (CC SUMRY) is more than $25,000, Managerial approval is required.

      Note:

      See IRM 5.19.1.2.6.3, Installment Agreements, and IRM 5.19.1.6.4.8, IA Managerial Approval.

    3. PPIA NFTL Determination Requirements: A NFTL determination is required. For pre-filing considerations, see IRM 5.19.4.5.1, Notice of Federal Tax Lien Filing Determinations. 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.

    4. PPIA ALN: Normally, "12" should be entered in the YY position of the ALN; however, see IRM 5.19.1.6.5.3.1, Input of PPIAs, and Exhibit 5.19.1-9, ALNs, for further information on ALNs.

  13. IBTF Express: CSCO, ACS, ACSS and Field Assistance employees are authorized to establish IBTF Express Agreements up to AAB (CC SUMRY) of $25,000.

    1. IBTF Express Payment Method Requirements:

      If ... Then ...
      AAB (CC SUMRY) is less than $10,000, The IBTF Express may be established using any payment method.
      AAB (CC SUMRY) is between $10,000 and $25,000, The IBTF Express must be established as a DDIA. (Taxpayer must authorize DDIA before IA is established to qualify.) See IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, and IRM 5.19.1.6.4.13, DDIA.

    2. IBTF Express Managerial Approval Requirements: Managerial approval is not required, but AMS history must contain the Compliance Suite Payment Calculator calculation showing the IA will be fully paid within 24 months.

    3. IBTF Express NFTL Determination Requirements: A NFTL determination is not required but may be filed if the NFTL will protect the government’s interest, such as if a property sale is imminent. For pre-filing considerations, see IRM 5.19.4.5.1, Notice of Federal Tax Lien Filing Determinations. 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.

    4. IBTF Express ALN: A "15" should be entered in the YY position of the ALN; however, see IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, and Exhibit 5.19.1-9, ALNs.

    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.

  14. 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.

  15. Payoff Requests: Taxpayers may submit full payment at any time. If a taxpayer on an IA wants to pay off their balance, do not convert their IA to a Short Term payment plan (See IRM 5.19.1.6.3(12), Short Term Payment Plan Within 180 Days. 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 as described in IRM 5.19.1.6.2(5), Can Full Pay Balance Due Now (Payoff). For restricted interest computation, refer to IRM 20.2.1.4, Normal and Restricted Interest, IRM 20.2.1.4.2, Manual Calculation of Interest, and IRM 21.5.6.4, Freeze Code Procedures.

    Note:

    If it has not been paid yet, advise the taxpayer of the user fee.

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:

    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 5.19.1-3, ACS Call Flow.

    Reminder:

    See Exhibit 5.19.1-9, ALNs, to determine the appropriate ALN.

    If ... And ... Then ...
    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Form 433-H, Installment Agreement Request and Collection Information Statement

    • 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),

    • Form 433-H, Installment Agreement Request and Collection Information Statement

    • 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 SIA monthly payment amount we can accept.

      • If the taxpayer proposes or agrees to a monthly payment amount that meets SIA criteria, grant the SIA.

      • If the taxpayer proposes a monthly payment that will not full pay within 72 months, but does meet the CSED, grant the IA following NSIA procedures. Obtain managerial approval as required in IRM 5.19.1.6.4.8, IA Managerial Approval.

      • If the taxpayer proposes a monthly payment amount that does not meet the CSED, request financial information.

        1. If the taxpayer immediately (verbally or by EEFax during the phone contact) supplies the financial information and an NSIA or PPIA can be granted, process it accordingly. See IRM 5.19.13, Campus Procedures for Securing Financial Information. Obtain managerial approval as required in IRM 5.19.1.6.4.8, IA Managerial Approval.

        2. If you cannot secure the financial information immediately (verbally or by EEFax 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 433-H, Installment Agreement Request and Collection Information Statement

    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),

    • Form 433-H, Installment Agreement Request and Collection Information Statement

    • Correspondence,

    • Phone request, or

    • Face to face request

    A monthly payment amount is proposed that will not full pay within 72 months, but does meet the CSED,
    1. Follow NSIA procedures.

    2. Obtain managerial approval as required in IRM 5.19.1.6.4.8, IA Managerial Approval.

    3. Document AMS.

    • Form 433-D, Installment Agreement,

    • Form 9465, Installment Agreement Request (any revision date),

    • Form 433-H, Installment Agreement Request and Collection Information Statement

    • Correspondence,

    • Phone request, or

    • Face to face request

    A monthly payment amount is proposed that does not meet CSED and the taxpayer has provided financial information (if required).

    Example:

    Completed Form 433-F, Collection/Information Statement, or Form 433-H, Installment Agreement Request and 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. Obtain managerial approval as required in IRM 5.19.1.6.4.8, IA Managerial Approval.

      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 CSED and the taxpayer has not provided financial information (if required).
    1. If speaking with the taxpayer, inform them that their IA request cannot be processed without further information. Advise them of the minimum SIA monthly payment amount we can accept.

      • If the taxpayer agrees to a monthly payment amount that meets SIA criteria, grant the SIA.

      • If the taxpayer does not agree to a monthly payment amount that meets SIA criteria, but counter-proposes a monthly payment that does meet the CSED, grant the IA following NSIA procedures. Obtain managerial approval as required in IRM 5.19.1.6.4.8, IA Managerial Approval.

      • If the taxpayer does not agree to a monthly payment amount that meets the CSED, 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 EEFax 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 EEFax 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 SIA monthly payment amount we can accept.

      • 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:

    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.

    Reminder:

    See Exhibit 5.19.1-9, ALNs, to determine the appropriate ALN.