5.19.6 ACS Support

Manual Transmittal

February 20, 2018

Purpose

(1) This transmits revised IRM 5.19.6, Liability Collection, ACS Support.

Material Changes

(1) Editorial changes made throughout to update references and terminology; to correct formatting issues; and to revise wording for clarity, eliminate unnecessary or duplicate verbiage, update website address, IRM references and comply with current writing standards. Material changes are noted below.

(2) 5.19.6.1: Added subsection on Program Scope and Objectives in compliance with IRM 1.11.2 standards.

(3) 5.19.6.2: Updated to reflect the SB/SE and W&I compliance realignment under (2) & (6).

(4) 5.19.6.3: Corrected link to OFP Home Page and updated title to IRM reference.

(5) 5.19.6.4: Corrected titles to IRM references and added additional IRM references.

(6) 5.19.6.4.1: Removed bullet list and added link to Mandated IAT Tools under (6).

(7) 5.19.6.7.5: Added Note for cases no longer on ACS under (6).

(8) 5.19.6.12: Added time frame for date stamping mail under (2).

(9) 5.19.12: Updated clarification on third party levy response sorting under (3).

(10) 5.19.6.12: Added information for unclaimed funds correspondence under (4).

(11) 5.19.6.12: Added information on where to forward Affordable Act Care Correspondence under (4).

(12) 5.19.6.12: Removed Note under (5) and captured information from Note into the paragraph.

(13) 5.19.6.12: Added Note for Passport Certification Correspondence under (10).

(14) 5.19.6.13: Changed language from "required to make" to "may make" under (3).

(15) 5.19.6.13.1: Deleted first paragraph and add information for clarification.

(16) 5.19.6.13.1.1: Removed paragraph (10).

(17) 5.19.6.13.1.2: Added new subsection, Collection Appeal Rights and the Employer Shared Responsibility Provision (ESRP).

(18) 5.19.6.4.13.4: Modified bullets under (5).

(19) IRM 5.19.6.18: Updated to address undelivered mail research needed for secondary spouse.

(20) IRM 5.19.6.15: Updated to define procedures for processing levy responses.

(21) 5.19.6.20: Removed reserved subsection.

(22) 5.19.6.20.7: Added additional information about the systemic inventory in S6.

(23) 5.19.6.21: Removed reserved subsection.

(24) 5.19.6.22: Added bullet to address how to work cases with a TC 971 AC 043 with no additional information under (3).

(25) 5.19.6.23: Added caution under (2).

(26) 5.19.6.23.2: Added note under (3).

(27) 5.19.6.23.2: Updated the if/then table to clarify case processing procedures under (3).

(28) 5.19.6.24: Added language to include Account Maintenance (AM18) transcripts under (2).

Effect on Other Documents

This material supersedes IRM 5.19.6, dated December 18, 2014. This IRM incorporates IRM Procedural Updates 15U0332, 16U1420, 16U1641, and 17U1092, issued from February 18, 2015 through November 5, 2016.

Audience

Automated Collection System Support (ACSS) site employees in the Small Business / Self Employed (SB/SE), and Wage and Investment (W&I) Campuses.

Effective Date

(02-20-2018)

Kristen Bailey,
Director, Collection Policy
Small Business/Self -Employed

Program Scope and Objectives

  1. Purpose: This IRM provides guidance and instructions for processing ACS Support work.

  2. Audience: The primary users of the IRM are tax examiners in the SBSE ACS Support sites.

  3. Policy Owner: These polices are owned by the Director of Collection Policy, SB/SE.

  4. Program Owner: The Small Business/Self-Employed, Collection Policy Office. Campus Policy, an organization within Collection Policy, maintains this IRM.

  5. Primary Stakeholders: The primary stakeholders are ACS, SB/SE Collection, and Taxpayer Advocate Service..

  6. Program Goals: ACSS provides support to the ACS organization through the processing of incoming and outgoing correspondence related to ACS phone operations, the processing of Notice of Federal Tax Lien request. The goal of ACS Support is to support ACS by:

    • Ensuring correspondence received as a result of ACS phone is processed in a timely manner

    • Ensuring requests for Notice of Federal tax liens are filed timely

Background

  1. ACS Support provides support for the ACS call site by:

    • Mailing of letters

    • Perfecting notice of federal tax lien request

    • Processing action lists

    • Processing action requests

    • Performing account actions from correspondence

    • Processing paper levy responses

  2. This IRM provides instructions and guides to ensure complete and timely processing of work.

Authority

  1. The authorities in this IRM include:

    • 26 USC 6012

    • 31 USC 3723

    • Policy Statement 1-236

    • Policy Statement 5-1

    • Policy Statement 5-2

    • Policy Statement 5-21

    • Policy Statement 5-39

    • Policy Statement 5-71

    • Policy Statement 5-133

    • Policy Statement 5-134

    • Policy Statement 21-3

Responsibilities

  1. The Director, Collection Policy, is the Executive responsible for the policies and procedures in this IRM.

  2. The Campus Team, Department, and Operation Managers are responsible for ensuring employees follow the guidance and procedures described in this IRM.

Program Management and Review

  1. Program Reports: Daily and weekly reports are performed by management. Headquarters gathers monthly data to complete the Monthly Monitoring Report (MMR).

  2. The following reports can assist with reviewing this type of workload:

    • Embedded Quality Review System (EQRS)

    • National Quality Review Systems (NQRS) Reports

    • AMS Reports

    • ACS Reports

    See IRM 1.4.20.18.1.1, Collection Managerial Reports for additional information on available managerial reports.

  3. Program Effectiveness: The program effectiveness is measured by the following review types and by level of management.

    • Case Reviews are conducted by Managers to ensure compliance with this IRM.

    • Operational Reviews are conducted by Department Managers, Operation Managers and Campus Director annually to evaluate program delivery and conformance to administrative and compliance requirements.

    • Paper cases are routinely reviewed by Program Analysis System (PAS) to ensure correct and timely actions in accordance with the procedures in this IRM.

    • Evaluative (EQRS) reviews are routinely conducted to ensure case actions are timely and in accordance with procedures in this IRM.

    • Headquarters Collection Policy conducts program reviews as necessary to verify compliance with IRM requirements, address TIGTA findings, and address any trends that appear.

Program Controls

  1. Managers verify program and procedural compliance by conducting case reviews, performance reviews and security reviews. Prescribed internal controls are detailed in IRM 1.4.20 , Filing & Payment Compliance Managers Handbook which communicates responsibility to ACS Support Managers and Team Leaders.

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

  3. Independent Administrative Review is required of all rejected IA proposals meeting the requirements in IRM 5.19.1.6.4.7,Pending IA Criteria.

Terms /Definitons/ Acronyms

  1. The table below is list of common abbreviations, definitions and acronyms used throughout this IRM.

    ABBREVIATION DEFINITION
    AAB Aggregate Assessed Balance
    AC Action Code
    ACA Affordable Care Act
    ACS Automated Collection System
    ACSS Automated Collection System Support
    ADR Address Research System
    ALS Automated Lien System
    AM Account Management or Account Maintenance
    AMS Account Management Services
    ASFR Automated Substitute for Return
    AUR Automated Underreporter
    BFC Beckley Finance Center
    BFS Bureau of Fiscal Service
    BMF Business Master File
    BOD Business Operating Division
    BPOD Bulk Proof of Delivery
    BRM Business Reply Mail Return Envelope
    CAF Centralized Authorization File
    CAP Collection Appeal Program
    CAS Customer Account Services
    CAWR Combined Annual Wage Reporting
    CC Command Code or Closing Code
    CCA Case Control Activity
    CCPLU Centralized Case Processing Lien Unit
    CDP Collection Due Process
    CIS Collection Information Statement
    CMR Certified Mail Repository
    CMS Certified Mail System
    CNC Currently Not Collectable
    CNTL Control
    CORR Correspondence
    CP Case Processing or Computer Paragraph
    CDP/EH Collection Due Process/ Equivalent Hearing
    CPS Correspondence Production Services
    CRBUR Credit Bureau Research
    CRMOD Credit Module
    CSC Cincinnati Service Center
    CSCO Compliance Service Collection Operation
    CTR Currency Transaction
    DDIA Direct Debit Installment Agreement
    DECD Deceased
    DLN Document Location Number
    DPC Designated Payment Code
    EIN Employer Identification Number
    ELS Electronic Levy Systems
    EUP Employee User Portal
    FERDI Federal Employee/Retiree Delinquency Initiative
    FM10 Lien History Code or Lien
    FMS Financial Management Services
    FPLP Federal Payment Levy Program
    FSC Fresno Service Center
    FTP Failure to Pay
    GII Generalized IDRS Interface
    HQ Headquarters
    IA Installment Agreement
    IAT Integrated Automation Technologies
    IDRS Integrated Data Retrieval System
    IDT Identity Theft
    IDTVA Identity Theft Victims Assistance
    IRA Individual Retirement Account
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    IRRA Inbound Return Receipt Automation
    KC Kansas City
    KCSC Kansas City Service Center
    LEVYPYT Levy Payment
    LLC Limited Liability Company
    LP Letter issued to third parties
    LT Letter
    MEC Minimum Essential Coverage
    MFT Master File Tax
    NCNN Currently not collectible closure
    NDS Notice Delivery System
    NFLT Notice of Federal Tax Lien
    NLS National Levy System
    NLSD National Levy Source Database
    NONEMP Non-employee
    OADT Other Action Date
    OAR Operations Assistance Request
    OFP Organization Function Program
    OOB Out of Business
    POA Power of Attorney
    PSC Philadelphia Service Center
    PSEQ Page Segment
    PTR Partner or General Partner
    PUB Publication
    QMF Query Management Facility
    RDNN Return delinquency closure
    RET DEL Return delinquency
    RRA Restructuring and Reform Act or Restructuring and Reform Act of 1998 (Law)
    RTR Remittance Transaction Research System
    SBSE Small Business Self Employed
    SC Service Center
    SCCB Service Center (Campus) Collection Branch
    SERP Service Wide Electronic Research Program
    SFR Substitute for Return
    SIA Standardized IDRS Access
    SITLP State Income Tax Levy Program
    SLID Serial Lien Identification Number
    SRP Shared Responsibility Payment or Individual Shared Responsibility Payment
    SSN Social Security Number
    TAMIS Taxpayer Advocate Management Information System
    TAS Taxpayer Advocate Service
    TC Transaction Code
    TDA Taxpayer Delinquent Accounts
    TDI Taxpayer Delinquency Investigations
    TDS Transcript Delivery System
    TFRO Transfer to Revenue Officer
    TIN Taxpayer Identification Number
    TNR Automated Telephone Number Research
    TP Taxpayer
    TRIS Telecom Response Interactive System
    UD Undeliverable
    URF Unidentified Remittance File
    USPS United States Postal Service
    VBD Voice Balance Due
    VV-TNR Vendor Validation Telephone Number Research
    W&I Wage and Investment
    WP&C Work Planning and Control
    XREF Cross Reference
    XSF Excess Collection File

Related Resources

  1. Additional Resources can be found as applicable in:

    • IRM 2.4, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 5.19.2, Individual Master File (IMF) Return

    • IRM 5.19.4, Enforcement Action

    • IRM 5.19.5, ACS Inventory

    • IRM 5.19.8, Collection Appeal Rights

    • IRM 5.19.9 ,Automated Levy Programs

ACS Support Overview/What is ACS Support

  1. Automated Collection System Support (ACSS) is a Compliance Operation, supporting ACS Call-Sites, resolving correspondence from taxpayers, their representatives, and/or third party contacts. These include Taxpayer Delinquent Accounts (TDA) with a balance due and/or Taxpayer Delinquency Investigations (TDI) with delinquent returns.

  2. There are five SBSE ACS Support sites:

    • Atlanta Campus

    • Cincinnati Campus

    • Fresno Campus)

    • Kansas City Campus

    • Philadelphia Campus

    Fresno processes W&I Correspondence. Philadelphia and Cincinnati process SBSE correspondence.

  3. ACS Support is responsible for working the "S" and "V" inventories, See IRM 5.19.6.22, S - Inventories, and IRM 5.19.6.23, Victor "V" Inventory

  4. ACS Support duties consist of:

    • Perfecting of flagged levy requests and NFTL requests -- daily.

    • Processing action lists -- weekly.

    • Perfecting levies -- daily

    • Processing action requests -- daily.

    • Performing account actions from correspondence.

    • Processing paper levy responses.

    • Processing TAS & CDP cases.

    • Processing ACS undelivered mail.

    • Processing balancing lists.

    • Processing TDI returns.

  5. SBSE has designated individuals serving as coordinators/liaisons. The contact information can be located on SERP under the Who/Where tab and then selecting applicable coordinator link (e.g., ACS Support Liaisons or ACS CDP Coordinators).

    • ACSS Liaison

    • CDP Coordinator

    • Collection Appeal Program (CAP) Coordinator

    • NLS Coordinator

    • SITLP Liaison

    • TAS Liaison

Time Reporting

  1. The Work Planning and Control (WP&C) System tracks time expended and volume of work processed by work code.

  2. For a complete description of each OFP listed below, go to the OFP Home Page at http://etd.ds.irsnet.gov/etd/ofp/index.asp. See IRM 3.30.20, Work Planning and Control, for more information about the WP&C.

  3. Report ACS Support work under Organization Code 76000 using functions 790, 810 and 820.

  4. The following program codes are used by both SB/SE and W&I for ACS Support work.

    Caution:

    Only codes approved by National Office may be used for reporting of work.

    • 64000 ACSS Clerical

    • 64011 ACSS Liaison

    • 64012 ACSS TAS Inquiries

    • 64110 ACSS Financial Analysis (CIS - Collection Information Statement)

    • 6412x TDA - Balance Due taxpayer correspondence

    • 6413x TDI - Return Delinquency taxpayer correspondence

    • 6414x Levy and LP responses (Third Party Correspondence)

    • 64160 Forms 3870,4159 &4442

    • 6417x Other ACS Support Inventory

    • 64180 TRIS - Voice Balance Due (VBD) listings

    • 6430x ACS NFTLs, levies and letters

    • 64304 Undeliverable Notice of Levy and LP59 letters to levy sources

    • 64400 CDP - Front end

    • 64410 CDP - Back end

    • 64420 Collection Appeal Program (CAP)

    • 6450x ACS Miscellaneous listings (includes ACS Balancing List, ACS Error lists, ACS Aged lists, TNR - VV list)

    • 64610 LEVYPYT Transcripts

    • 64620 C Open Levy Control Bases

    • 6470x ACS Action lists

    • 6471x ACSS Identity Theft

    • 6475x ACSS Return Preparer Misconduct

    • 64800 ACS Action requests

    • 64810 - IA User Fee Reduction (W&I KCSC only)

    • 6490x ACS Undeliverable mail

ACS Support Research

  1. Systems used by ACS Support include the following:

    • IDRS

    • ACS

    • AMS

    • ALS

    • SERP

    • ADR

    • GII

    • RTR

    • EUP for TDS access

  2. In addition to IRM 5.19.6, the following IRMs are used for processing work performed in ACS Support:

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 5.19.5, ACS Inventory

    • IRM 5.19.4, Enforcement Action

    • IRM 5.19.1, Balance Due

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

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

    • IRM 5.19.12, Centralized Case Processing - Liens

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

    Note:

    Additional procedures are contained throughout IRM Part 21, Customer Account Services (CAS).

Mandated IAT Tools for ACS Support

  1. This section provides information on mandated IAT tools for ACSS Employees.

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

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

  4. Additional IAT tools will be added to the following list when one is deemed beneficial and seen as adding quality to the ACSS work processes.

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

  6. See IRM 5.19.2.1.8, Mandated IAT Tools, for a list of mandatory IAT tools.

    Note:

    If a form is available through AMS and the IAT Fill Forms Tool, use the AMS form as it will upload the completed form details into the AMS history. This will eliminate the need to manually document the form details into AMS history.

  7. The suggested use IAT tools are Payment Tracer and Compliance Suite.

  8. Additional information for each tool, including job aids, can be located on the IAT website at: http://iat.web.irs.gov/JobAids/iat.asp.

ACS Letter/Levy Mailout

  1. ACS outgoing correspondence consists of the following items:

    • Taxpayer letters (LT) Run Number NOT22.

    • Third party letters (LP) Run Number NOT22.

    • Form 668-W(c), Notice of Levy on Wages, Salaries, and Other Income- Run Number NOT21.

    • Form 668-A(c), Notice of Levy - Run Number NOT21.

    • Form 8519, Taxpayer Copy of Notice of Levy - Run Number NOT21.

  2. See Exhibit 5.19.6-1 for a complete list of letters, levies, mailer envelopes, return envelopes and required inserts.

  3. ACS notices are printed and mailed from the Correspondence Production Services (CPS) sites. Generally, SBSE ACS notices are processed by Detroit - CPS (East) and W&I notices are processed by Ogden - CPS (West). ACS generates outgoing correspondence weekly for new accounts and daily for items requested in ACS real-time.

  4. ACS generated correspondence is dated seven days from the request date, excluding weekends and Holidays.

    Note:

    Levy Releases, LP68, are dated 5 business days from the request date.

  5. Some banks, local businesses and major nationwide employers have requested that levies and related correspondence be mailed to a centralized address. See IRM 5.19.4.3.5 for a description of how levy sources are created. See IRM 5.19.4.3.8 regarding centralized mail addresses and see IRM 5.19.4.3.9 for information on levy source address availability on SERP.

    Reminder:

    ACS employees are required to make sure that addresses are complete including zip codes before requesting the levy or letter. For rural areas a street or post office box may be necessary.

  6. If a letter/LP, levy, or NFTL is not mailed for any reason, reject the action on ACS as follows:

    • For letter or LPs, enter "MCLT,01, LTnn" or "MCLP,01,LPnn" . For a levy, enter "MCLV,,LVnn" . For a NFTL, enter "MCFM,,CMTmm-dd" . "nn" is the letter, LP, or levy number.

    • Enter the reason for not mailing the original notice in AMS history.

    • Reissue the notice; OR assign the account back to the originating function (S, C, R, E or I) if the notice will not be reissued.

      Note:

      DO NOT reissue the notice if the Status changed (no longer TDA or TDI status) or there are new comments or account activity that make the correspondence unnecessary. Notate in AMS comments the reason the notice was not reissued.

Signatures on ACS Letters and Levies

  1. ACS letters and levies, with the exception of LT/ST 11, contain the signature of an ACS call site operations manager; one for each ACS Support campus:

    • Philadelphia call site operations manager (PSC ACS Support)

    • Detroit call site operations manager (CSC ACS Support)

    • Kansas City call site operations manager (KCSC ACS Support)

    • Fresno call site operations manager (FSC ACS Support)

  2. Signatures are stored in the national electronic library and are accessed when letter/levy print jobs are processed.

  3. If a call site operation manager retires, gets new job, etc., the signature must be updated with new operations managers name.

  4. The signatures for ACS products are updated by the User Support function in each of the four campuses in (1) above.

Securing new/revised Signatures for ACS Letters and Levies

  1. When notified of a change in name, request the new ACS operations manager to write their signature within the box using black ink. See Exhibit 5.19.6-2.

    Note:

    This page can be printed from SERP and used for routing to the User Support function.

  2. It is best to secure an original signature not a faxed one. If the call site operations manager is off site they should mail it to the ACS Support department.

Routing signature change to local User Support Function

  1. Deliver the request for signature change to your campus User Support function.

  2. An ICS/ACS print (IAP) computer specialist will digitize the signature and load it on the print system library.

  3. The digitized signature for all LT/ST & LP/SP letters generated by NOT22 is placed in library NRPS.ACSA.PSEGLIB with the external segment name of S1ACSCS. The computer specialist will use ELIXIR software to convert the signature into a page segment (pseg), and rotate the pseg 180 degrees.

  4. The digitized signature for levies generated by NOT21 is placed in library IRSX.SYSx.LOCAL.PSEGLIB with the external segment name of S1ACSCB.

    Note:

    x represents a support site literal E(CSC), F(FSC), G(KCSC), J(PSC). Effective July 2, 2007, ACS notices that require printing and mailing are generated from one of the Correspondence Production Services (CPS) sites.

Verification of signature change

  1. ACS Support should verify that the signature change was made by the User Support function and that it is printing correctly (meaning it is placed in the proper position on the letter and is not printed upside down).

  2. If any problems are discovered, contact the computer specialist immediately.

Certified Mail Process

  1. The ACS LT11 is mailed certified, return receipt requested. On July 2, 2007 the Correspondence Production Services (CPS) sites assumed responsibility for the printing and mailing of ACS notices. This is now accomplished through its Notice Delivery System (NDS). Also, an automated Return Receipt Request process using a new U.S. Postal Service (USPS) system called Bulk Proof of Delivery (BPOD) was instituted. These implementations eliminated the manual work involved with processing the ACS notice output and replaced the CDP Certified Mail System (CDP-CMS).

  2. The BPOD service involves CPS sending a request file to USPS to obtain delivery notification instead of sending USPS Form 3811 (Green Cards) on all return receipt requests. USPS provides delivery results back in a series of electronic files including signature images. The CPS NDS allows the mailing status Transaction Code (TC 971-069) to systemically post to IDRS. The TC 971-069 will be posted to IDRS only when a CDP notice is physically presented to USPS for mailing (previously it posted when the CDP notice was issued from ACS). In addition, NDS generates a certified mail listing to be presented to USPS for proof of mailing. This is a listing of data corresponding to the actual notices that are delivered to USPS for mailing. The USPS stamped certified mail listings will be returned to the ACS Support function at each campus for future CDP hearing use if needed.

  3. An additional feature of NDS allows the obtained delivery status information (TC971 - AC 066, 067,068) to be systemically posted to IDRS and the signature image to be stored in a repository. This process is referred to as Inbound Return Receipt Automation (IRRA). The Certified Mail Repository (CMR) stores this information.

Automated Lien System (ALS), Overview

  1. The following sections provide instructions for printing, perfecting and quality reviewing Notice of Federal Tax Liens (NFTLs) requested via ACS for input to the campus portion of the Automated Lien System (ALS).

  2. NFTLs are requested on ACSWeb by using history code FM10. Certain conditions exist which require special procedures when filing a NFTL. In these cases employees will enter the history code FM10 twice, creating multiple requests.

  3. When a CAF indicator is present or there are mixed modules, a second FM10 will systemically generate. The variable action history will reflect the reason for the second FM10. For example, when the CAF indicator is present, the CAF number for the POA is populated.

  4. The FM10 requests are downloaded to the ALS-ACS Perfection program. When there are multiple FM10s, multiple requests will download.

  5. Process NFTL requests within five workdays of receipt.

    Note:

    Any NFTL request not perfected will be rejected from ALS. See IRM 5.19.6.7.7 for information on how to handle NFTLs that are rejected during the perfection process.

  6. To assist with processing NFTL requests, refer to IRM 5.19.12, Centralized Lien Operation, and the Automated Lien System (ALS) User Guide which can be found on MySB/SE web page User Guides

Systemic Batching of Liens

  1. There are two ways to batch NFTLs.

    1. Input size of batch and the system will automatically calculate the number of batches.

    2. Bypass size by pressing enter and input the number of batches and the system will automatically calculate the size of the batch.

    Note:

    Using the first method ensures the system automatically batches the entire inventory. If the second method is used, verify there is no inventory remaining to be batched.

  2. The system will then ask you if you are ready to begin batching.

    • Answer with "Y" if yes.

    • Answer with "N" if you want to re-size your batches.

  3. The system will automatically assign a batch number to each of the batches.

    • The system will ask for the employee's login to be input.

    • The system will then ask if you are ready to print.
      •Type "Y" for yes and the batch will be printed.
      •Type "N" for no and you will need to re-input the login name.

  4. Each batch will print out with 2 cover sheets. The cover sheet will show the batch number, the employee it is assigned to and the volume of the batch. One cover sheet should go with the batched NFTLs and is distributed to tax examiners to work. The second cover sheet should be retained until the batch is completed and then destroyed.

Processing NFTL Requests

  1. Each NFTL request contains the following information:

    • Area Office location

    • Taxpayer's name

    • Taxpayer's address

    • Tax Periods

    • TIN

    • Unpaid balance of assessment as shown on ACS

    • NFTL request date

    Note:

    MFT 35 modules are never to be included or added to a NFTL. If you receive a NFTL request with a MFT 35 module listed, reject the NFTL request on ACS using “MCFM,,CMTmm-dd” and reassign back to the manager function of the originator. Add AMS narratives.

    Note:

    If you receive a NFTL request with more than 15 tax modules, reject the NFTL request on ACS using "MCFM,,CMTmm-dd" and reassign back to the manager function of the originator for manual processing as outlined in IRM 5.19.4.6.1(2)b, How to File a Lien. Add AMS narratives.

  2. Research each NFTL request on IDRS for the following items:

    • Assessment dates.

    • Balance due amounts.

    • Valid entity type (individual, corporation, etc.)

    • Civil penalty reference codes.

    • Valid name line(s) and address.

Perfection of Taxpayer's Name and Address

  1. If the NFTL is for a Corporation or Partnership and is not reflected in the name line, write corporation or partnership after the name.

  2. A corporation can be identified from the following indicators:

    • A Form 1120 filing requirement on ENMOD, INOLE, etc.

    • One of the following words in the first name line, INC., Incorporated, Corporation, Corp., Ltd., Limited, and Association.

  3. A partnership can be identified from the following indicators:

    • A Form 1065 filing requirement on ENMOD, INOLE, etc.

    • More than one person's name included in the name lines.

    • Any name line which includes, PTR., Partner, or General Partner.

      Note:

      If the entity is a partnership, do not include the names of individual partners on ALS. The NFTL will be filed in the partnership's name and address only.

  4. If a BMF entity does not clearly fall into the category of corporation or partnership, code it as a sole proprietor.

  5. ENMOD may contain numerous name lines. The IMF name lines on the NFTL must match the IMF name line for the tax modules listed on the NFTL. If different, use the information from ENMOD.

  6. Compare address with ENMOD. If a new address is found, including "AP" and "PN" , edit the NFTL with the new address.

Perfection of Assessment Date, Module Balances and Civil Penalty Reference Codes

  1. You can file one NFTL for multiple modules against the same taxpayer. Each module is listed separately.

  2. A module can have more than one unpaid assessment transaction code, (TC150, 240, 290, 300 or 765). Annotate each unpaid assessment transaction date.

    • Enter the unpaid balance due for each module next to the most recent assessment date. See the NOTE and REMINDER listed below under item #4.

    • Enter .00 next to any earlier assessment dates that appear on the same module.

    Note:

    Do not add the civil penalty reference codes when the TC 240 is part of a non MFT 55 module.

  3. ALS will accept up to 15 assessments on one NFTL. If more than 15, reject on ACS using "MCFM,,CMTmm-dd" and reassign the case back to the manager function of the originator for manual processing as outlined in IRM 5.19.4.6.1(2)(b), How to File a Lien. Reject the NFTL request in ALS and document AMS history with rejection information.

  4. Compare balance due for each module with balance due on SUMRY. If different, notate new balance.

    Note:

    If only accruals are due, calculate the amount to the date of the NFTL request using CC INTST and notate on the NFTL request.

    Reminder:

    When necessary, compute restricted Failure to Pay (FTP) penalties and/or restricted interest using the date of the NFTL request and notate the amount on the NFTL request. See IRM 20.1Penalty Handbook, and IRM 20.2Interest, for guidance on how to compute restricted interest and penalties. Penalties/interest should be assessed or abated as appropriate.

  5. If the assessment transaction code is a TC 240 (Civil Penalty), notate the civil penalty reference code on MFT 55 modules only .

  6. If any module is in status 12 or 72, line through it. If all the modules are in status 12 or 72, mark the NFTL request, "reject." . Document AMS history with rejection information.

  7. NFTLs filed on Form 2290, Heavy Highway Vehicle Use Tax Return, modules should be prepared using the period beginning date (e.g., 07-01-2012) rather than the period ending date (e.g., 06-30-2013). This is very important when there is more than one period for a specific TIN. The period beginnings must be used to separate each assessment to ensure that we receive the module satisfaction indicator from the master file when each module is satisfied.

Perfection of Multiple Requests for the Same Taxpayer

  1. Multiple requests can either be:

    • systemically generated, based on conditions present on an account, or

      Note:

      The variable action history will contain the reason for the systemically generated multiple FM10.

    • input by an employee when a condition exists which requires special processing. See IRM 5.19.4.6.2 , Special NFTL Filing Considerations.

      Note:

      Comments providing special instructions for processing the NFTL request will be found on AMS under the issue code for "Liens" when an employee inputs multiple FM10s.

  2. The ACS NFTL programming will systemically generate a second FM10 in the following instances:

    • when there is a CAF indicator present on the account (ACS variable action history will reflect the CAF number for the POA), or

    • when there are mixed modules on an account for which the NFTL is being filed. For example, there are TDA modules for an MFT 30 and MFT 29 or MFT 31 on an account. (ACS variable action history will reflect "MIXMODS" ).

  3. When the CAF indicator is present, the authorized POA information is pulled directly from the CAF and forwarded with the NFTL request to the ALS-ACS Interface program. The POA information will be displayed after the NFTL information is perfected. Verify the POA information and if there are no changes, accept by using CTRL A.

  4. When the multiple FM10 are the result of ‘mixed modules’, care must taken to ensure that the appropriate taxpayers are listed on the NFTL.

  5. For all other multiple NFTLs (FM10 appears in ACS history twice) research AMS comments for special instructions.

    • POA not on CAF

    • Real property in more than one filing jurisdiction

    • An ex-spouse living at a different address

    • A street address for an entity with a PO Box

    • Additional modules on IDRS that are not on ACS

  6. Annotate or attach a print to the NFTL request with the additional information found.

  7. Input the additional information on ALS.

  8. If AMS narratives do not show a reason for the employee-generated multiple FM10, line through the NFTL request and reject the NFTL on ACS:

    • Input "MCFM,,CMTmm-dd" and note on ACS comments why it is being rejected.

    • Input "TOxx,01,REJFM10" (xx - manager function of area that input the FM10 in history).

    Note:

    If NFTL is being rejected on ACS, it should also be rejected on ALS

    Note:

    If the case is no longer on ACS prepare a F4442 noting the rejection. Forward it to the manager of the employee who generated the lien request.

ALS Data Perfection Screen - General

  1. After securing all the above information from IDRS, access the ACS/ALS database and perfect each NFTL record using the NFTL request. For each NFTL record on ALS, the cursor appears at the first element to be perfected.

  2. Perfect the taxpayer name by entering the appropriate entity type codes:

    1. 1- Individual - Use for all IMF and IRAF taxpayers.

    2. 4- Corporation

    3. 7- Partnership - Use when the entity is clearly a partnership.

    4. 9- Sole Proprietorship

  3. When there are no more NFTLs to perfect, the message "NO ADDITIONAL TINS" is displayed.

  4. For each NFTL perfected, destroy the ALS printout after quality review.

  5. NFTLs that cannot be perfected should be rejected on ALS and ACS. To reject a NFTL on ACS, input action code "MCFM,,CMTmm-dd" .

Stale Lien Rejection Report

  1. Effective June 11, 2012 when NFTLs are not perfected within 5 days after being loaded to ACSS/ALS a report, "Potentially Stale Lien Summary" , will generate advising there are NFTLs that need to be perfected by close of business or the NFTLs will be rejected. NFTLs not perfected by close of business will be rejected.

  2. Account information for rejected NFTLs will be provided in the "Stale Lien Rejection Report" .

  3. ACSS sites are responsible for addressing all accounts listed for their site contained on the Stale Lien Rejection Report by close of business the same day the report generates. The site must provide E-mail confirmation to HQ that new requests for NFTL have been input.

  4. If an account is still open on ACS, status 22, employees will need to take the following actions:

    1. Input an action history: "MCFM,,STALELIEN" .

    2. Review AMS history for any annotations of special NFTL instructions. If present, follow procedures in IRM 5.19.4.6.2.

    3. Input a new FM10.

    4. Update AMS history.

      Note:

      When updating AMS histories with special NFTL filing conditions, employees must enter those comments using the issue code for "Liens" .

  5. For those accounts that have closed off of ACS, no longer in status 22, employees will be required to prepare a Form 12636 , Request for Filing or Refiling Notice of Federal Tax Lien to manually request the NFTL.

    1. Update AMS history on account that original NFTL request was rejected as a stale NFTL.

      Note:

      When updating AMS histories with special NFTL filing conditions, employees must enter those comments using the issue code for "Liens" .

    2. Review AMS history for any annotations of special NFTL instructions. If present, they must be annotated on the Form 12636.

    3. Prepare the Form 12636 for all modules that were to be included on the NFTL.

    4. Obtain manager or designated employee approval, if necessary and forward to the Centralized Case Processing Lien Unit (CCPLU). The address for CCPLU may be found under the Who/Where tab on SERP.

Time Report to WP&C

  1. Charge time spent on this program to OFP 810-64301.

  2. Points of count are taken from the daily FM10 Processing Report.

  3. Do not take an additional item count for IDRS or ACS research, ALS input, ACS input, or clerical duties.

Levy Review

  1. Beginning January 2009, the online levy notice review and perfection application, Electronic Levy System (ELS), retired. All ELS system functionality migrated to the ACS application.

  2. Similar to ELS, ACS programming systemically screens the levy notices issued by ACS searching for pre-identified criteria. Based upon the result of the screening, ACS will either:

    • void the levy notice and generate a systemic action history item "SCLV" ; or

    • flag the notice for online review; or

    • allow the notice to be issued

  3. ACSS users with the appropriate ACS profiles will review and perfect levy notices that have been flagged for review. Levy notices not flagged for review in the ACS screening phase are sent to print during ACS overnight processing.

  4. The ACS Levy Review and National Levy Source (NLS) Screens User Guide contains complete information on the content of ACS levy review screen displays, reports, and processes. The instructions in this manual provide specific procedures for reviewing levies via ACS Levy Review.

  5. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools, for a list of mandatory IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

  6. Charge time spent on this program to OFP 810-64302. Point of count taken for each levy processed.

ACS Levy Review and Perfection Overview

  1. ACS programming performs the levy verification and levy address validation. Many of the ELS conditions codes are now handled systemically, with only four (4) conditions remaining that require a manual review.

    1. All levy source name and address issues, e.g. name line is blank or street address is blank, are now handled systemically. A real time error message is generated for levy source perfection and levy issuance is not permitted unless the levy source information is corrected.

    2. Taxpayer entity errors are now handled systemically, with the exception of entities containing an LLC in the name line and/or an LLC indicator equal to "S" or entities indicating a deceased DECD taxpayer; these will be flagged for review.

    3. Discrepancies in the module balance field will be handled systemically.

    4. Many of the conditions where the elements on the levy (such as status or module balance) compared to elements on IDRS are different or there are other indications on IDRS that could make the issuance of the levy inappropriate are also being handled systemically.

  2. ACS Levy Review is categorized into two groups, Pre-Issuance and Post Issuance.

    1. Pre-Issuance conditions are identified at the time the LVnn action history is input and generates a real-time error message to employees. It is the requesting employee’s responsibility to verify that the levy action is correct.

    2. Post Issuance conditions will be handled after the LVnn action has been successfully completed. Using batch programs, the system will determine which levies will be cancelled, flagged or issued.

  3. Tax examiners will work all flagged condition code types.

Accessing Online Levy Review through ACS

  1. New profiles have been established on ACS that contain the same functionality as the profiles on ELS and allow access to the new screens. Users will not be able to access the new screens unless they have the updated profiles.

  2. Users will need to complete an OL5081 to request the correct profile access.

  3. Employees who perform NLS Coordinator duties will require two employee numbers. A new profile for NLS duties and the other profile for access to ACS, either as an operator or levy reviewer.

Flagged Conditions Requiring Levy Review and Perfection

  1. All levy records are passed against IDRS to detect differences in account/module status, balance, etc.

  2. During the levy review process, ACS will flag an account for review by a tax examiner when one of 4 conditions below is met. The conditions are:

    • Open control base – Flag Condition Code "CNTL"

    • Credit module on IDRS – Flag Condition Code "CRMOD"

    • DECD in taxpayer entity - Flag Condition Code "DECD"

    • LLC Entity - Flag Condition "LLC"

    Note:

    When a module contains both an open control base and a credit module the flag condition code will display as "CRCNT"

  3. Tax examiners will be responsible for reviewing the account and determining whether the levy should be issued or not.

    Note:

    MFT 35 modules are never to be included on a levy. If you receive a levy request with a MFT 35 module listed, void the levy on ACS using “MCLV,,CMTmm-dd” and reassign back to the manager function of the originator. Add AMS narratives.

  4. When levies are manually cancelled during the levy review process, a systemic "MCLV " action history item is generated.

Open Control base - "CNTL"
  1. An account will be flagged for review when one or more modules contain an open control base. Employees will need to determine if the open control base on the account has any bearing on whether or not a levy should be issued.

  2. Any time the control base is open to an individual employee telephone contact must be made to determine if the levy can be issued. Document the results of the contact, or lack thereof, in AMS histories.

    1. If the employee states there will be no change to the TP account, issue the levy.

    2. If the employee states there will be a change to the TP account, void the levy. Reassign the account on ACS to "R1,21,OPNCNTL" .

    3. When unable to contact the employee, void the levy. Reassign the account on ACS to "R1,21,OPNCNTL" .

  3. Levies can be issued when the open control base is for a large scale category such as Underreporter.

  4. For accounts where the open control base is the result of a nullified unpostable, category code "NLUN" , research to determine if the unpostable condition has been resolved.

    1. If it appears the condition has been resolved and the control base is open in error, issue the levy.

    2. If the condition has not been resolved, void the levy and reassign the account on ACS to "R1,21,OPNCNTL" .

Credit Module on IDRS - "CRMOD"
  1. Accounts will be flagged for review when there is a credit on another tax module for the account that may have been intended for the balance due modules on the levy.

  2. If IDRS/ACS research indicates the credit should have been applied to the balance due module(s) on the levy, e.g. TC670 DPC 05 applied to TDI module, input a credit transfer to move the money to the TDA module. This will then change the balance due amount on ACS to either full paid or partially paid.

    1. If the credit transfer will fully satisfy the balance due module(s), void the levy. Update AMS history that the balance was satisfied by transfer of payments from xx xxxx (MFT/tax period), then reassign the account on ACS to "S0,21,ACCTFP" .

    2. If the remaining account balance is below ≡ ≡ ≡ ≡ ≡ , void the levy. Update AMS history. On ACS, input NC09 and reassign the account to "S0,21,NC09" .

    3. For all other remaining balances, consider the credit amount in relation to the liability.

      If Then
      the pending credit is small in relation to the liability. Issue the levy.
      the pending credit is large in relation to the liability. Cancel the levy. Reassign the account on ACS to" E3,21,PNDPMT" .

    Note:

    If the credit is from withholding identified from the taxpayers return and there is a refund hold code, do not transfer the credit.

  3. Address all credits on the module.

    REMINDER: Tax examiners are responsible for reviewing the account and determining if the levy should be issued.

  4. If the credit should not be applied to the TDA modules, issue the levy.

Deceased Taxpayer Entity - "DECD"
  1. Accounts will be flagged for review when the "DECD" literal is found in the taxpayer name lines. Issue all "DECD" flagged levies.

    Note:

    If "CNTL" or "CRMOD" flag conditions are present, a determination to issue or cancel a levy is based on those flag condition procedures.

Limited Liability Company - "LLC"
  1. Accounts will be flagged for review when a systemic levy has generated and one or more of the following conditions exist:

    1. "LLC" is in the name line of the entity.

    2. The LLC CD = S where there are delinquent employment tax modules prior to 2009 or excise tax modules prior to 1/2008 and the LLC Ind = 0,2 or 3

    3. LLC_CD = blank where there are delinquent employment tax modules prior to 2009 or excise tax modules prior to 1/2008.

  2. Employees will need to refer to IRM 5.19.4.3.4(15), Levy Determination - (E3 Processing) and IRM 5.19.1.5.14, LLC Accounts to determine whether or not the levy should be issued.

  3. If AMS history or ACS comments indicate the entity has one member and is a disregarded entity, e.g., one that is not taxed as a corporation, then void the levy and reassign the account "TOI4,21,LLC-SMDE" .

  4. If AMS history or ACS comments do not indicate the entity has one member and is a disregarded entity, issue the levy.

Action Lists

  1. Cases appear on the ACS action list because additional information or research is needed before enforcement actions are taken. The information or research needed and how the list is processed are determined by a category code. There are 6 category codes.

  2. The action lists are downloaded to Control-D weekly. The Job Name is ACJWA835 and the Remarks section displays:

    • ACRW8301 SCCB Action List

    • ACRW8302 SCCB Actions LST Multi Cond.

    • ACRW8303 ACS TRAMS FRM (this provides the weekly volumes)

  3. The Action Lists should be worked from the Control-D Listings weekly.

  4. Each action list contains the following elements:

    • Category code

    • Account TIN

    • Account name

  5. An action must be taken on each case on the list. Some action list categories provide specific case action processing procedures. See IRM 5.19.6.10, Action List Balance Due Procedures for processing TDA and combination (TDA & TDI) accounts or IRM 5.19.6.10.1, Action List Return Delinquency Procedures for TDI accounts.

  6. Document AMS history with type of action list worked and action taken (e.g., working A1 action lists - TDA, Working A1 action lists - changed location code, etc.).

  7. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools, for a list of mandatory IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

  8. Action listings are to be worked in five (5) business days.

  9. Charge time spent on this program to OFP 810-64700. Point of count taken for each action list processed by a tax examiner. Receipts are taken from the Transmittal Form (Control-D file).

A 1 Action List - Location Code

  1. An account appears on the A1 list when the jurisdiction has been changed on IDRS. Most of the these accounts are systemically processed via GII. The below procedures are to be followed when an A1 account contains an expired follow-up date on ACS.

  2. Use the following procedures to work this listing:

    If and Then
    Account is in S1 ACS/IDRS shows wrong location code was input ENREQ account to correct location on IDRS.
    Account is not in S1 ACS/IDRS shows wrong location code was input ENREQ account to correct location on IDRS.
    Account is in S1 ACS/IDRS shows correct location code was input Follow next case procedures. IRM 5.19.6.10, Action List Balance Due Procedures (TDA accounts) or IRM 5.19.6.10.1, Action List Return Delinquency Procedures (TDI accounts)
    Account is not in S1 ACS/IDRS shows correct location code was input No additional entry or rescheduling of follow-up dates is needed.
  3. Document AMS history with type of action list worked and action taken.

C1 Action List - CAWR Cases

  1. Accounts that appear on the C1 list are BMF return delinquency modules created by matching programs done with the Social Security Administration.

  2. Research IDRS and AMS history to determine if there has been contact with the taxpayer concerning the return delinquency. If research shows a phone call or paper correspondence from the taxpayer, or an open control, extend the follow-up date 21 days.

  3. If research shows no contact from the taxpayer, perform next case action. IRM 5.19.6.10, Action List Balance Due Procedures (TDA accounts). IRM 5.19.6.10.1, Action List Return Delinquency Procedures (TDI accounts).

  4. Document AMS history with the type of action list worked and action taken.

D 1 Action List

  1. Accounts on the D1 list have been accelerated by another function because the issues involved are best handled by ACS.

  2. ASGNI account back to zero using command code ASGNI I/B (e.g. BGEE - 0000).

  3. Research IDRS and AMS comments to determine why account was accelerated to ACS. Follow the chart below.

    If Research Indicates Then
    Taxpayer is in bankruptcy or deceased Assign case to R4
    Taxpayer requests an IA or CNC Assign case to R5
    None of the above Follow procedures in IRM 5.19.6.10, Action List Balance Due Procedures for TDA/Combo accounts or IRM 5.19.6.10.1, Action List Return Delinquency Procedures for TDI accounts.
  4. Document AMS history with the type of action list worked and action taken.

E 1 Action List

  1. Accounts appear on the E1 list if they have modules in currently not collectible status. The prime purpose of this category is to determine if new modules can be included under the prior 53. If they cannot, the account is assigned to the call site for action.

  2. Research IDRS for the following information:

    • Transaction date of most recent TC530

    • Cycle posted

    • Closing Code

    • AAB (CC SUMRY) of all modules, including previous CNC modules. See IRM 5.19.1.2.6, Case Processing Authority Levels.

  3. For cases in which prior module was reported CNC TC530, see table below.

    If and Then
    CC03 – Unable to Locate Transaction date is within the prior 12 months, no phone number, no levy source, no new address and
    1. IMF, Non-Masterfile (NMF), or out of business BMF sole proprietors or partners, with less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. BMF taxpayers (other than accounts for trust fund taxes owed by corporations, LLCs, or limited partnerships) with less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    3. BMF In Business Trust Funds with less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    .
    Input TC530 CC03 to all Status 22 modules on IDRS. Input OADT,14,530TOCL on ACS.
    CC12 – Unable to Contact Transaction date is within the prior 12 months, no phone number, no levy source, no new address, and the assessed balance is less than:
    1. IMF or BMF Out of Business (OOB) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. BMF In-Business Trust Funds - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. BMF In-Business Non-Trust Funds - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    .
    Input TC530 CC12 to all Status 22 modules on IDRS. Input OADT,14,530TOCL on ACS.
    CC07 – Bankruptcy or CC10 – Defunct Corporation New modules are not MFT 01,03, or 11, new liability period incurred prior to TC530 transaction date Input TC530 CC10 to all Status 22 modules on IDRS. Input OADT,14,530TOCL on ACS.
    CC10 – Defunct Corporation New modules are MFT 01,03, or 11 Transfer to field by doing ASGNI to 6501 on IDRS.
    CC08 – Deceased New liability occurred prior to or within same year as date of death. No dollar criteria. Input TC530 CC08 to all Status 22 modules on IDRS. Input OADT,14,530TOCL on ACS.
    CC24 through CC32 – Hardship (IMF or BMF sole proprietor accounts) Transaction date is within the prior 12 months and assessed balance is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Input TC530 CCxx to all Status 22 modules on IDRS. Input OADT,14,530TOCL on ACS.
    Any CC not listed above; is more than 12 months old; or over the dollar amounts listed in this chart.   Enter into AMS history the reason the TC530 was not input (e.g., above dollar criteria, over 12 months old, not applicable TC 530 CC) and continue processing per IRM 5.19.6.10
    No modules in status 53   Document AMS history (e.g. 0 mods ST 53) and continue processing per IRM 5.19.6.10
  4. Document AMS history with type of action list worked and action taken.

J 1 Action List - Re-sequence Merge Indicator Cases

  1. An account appears on the J1 list when it has been merged from one TIN to another. The entity may be on ACS with two different TINs.

  2. Research the action list TIN on IDRS using Command Code ENMOD. Look for indicator DI008 to locate the account's old TIN.

    Note:

    After researching the TINs involved, if there is an indication an invalid merge has taken place, contact Entity function for resolution.

  3. Access the old TIN on ACS to determine if the account is still present. If the old TIN is not present on ACS take the following actions:

    • Access the new account using the TIN from your listing

    • Enter the old TIN in the ACS notes field (Example: XREF = xxx-xx-xxxx 08-22-2007))

    • Continue processing per the following IRMs: IRM 5.19.6.10, Action List Balance Due Procedures (TDA accounts) or IRM 5.19.6.10.1, Action List Return Delinquency Procedures (TDI accounts).

  4. If the account is on ACS under both the old TIN and the action list TIN then secure prints from the old TIN and take the following actions:

    • Summarize all comments from the old TIN and input to ACS/AMS history under the new TIN.

    • ADD all telephone numbers, levy sources, etc. from the old TIN to the new TIN.

  5. Analyze old TIN history and follow-up date for next case action on the new TIN :

    • If old TIN had a future follow-up date then transfer new TIN to same function with same follow-up date.

    • If old TIN had an expired follow-up date or did not provide for next case action then continue processing per IRM 5.19.6.10 (TDA accounts) or IRM 5.19.6.10.1 (TDI accounts).

  6. Have manager or lead remove old TIN from ACS by inputting "TOS0,,ZAP" .

  7. Document AMS history with type of action list worked and action taken.

M1 Action List - Multiple Condition Cases

  1. Accounts appear on the M1 list when a case meets more than one action list category (e.g. D1 and E1).

  2. The action lists are downloaded to Control-D weekly. The remarks section displays ACRW8302 and the Job Name is ACJWA835.

  3. Analyze information required for each action list category as previously described and take appropriate action.

  4. If the category doesn't provide a specific next case action, then process the account using the procedures in the following IRMs. IRM 5.19.6.10, Action List Balance Due Procedures for balance due accounts or those with a combination balance due and return delinquency accounts (combo accounts) or IRM 5.19.6.10.1, Action List Return Delinquency Procedures for return delinquency only accounts.

  5. Document AMS history with type of action list worked and action taken.

Action List Balance Due Procedures

  1. If the account is no longer assigned to Function S1, no further actions are necessary.

  2. Use the table below for TDA or combo accounts:

    If and Then
    Levy Source is present FNL NOT date is present for all modules on ACS MOD screen (this means a TC971 AC069 has posted) Assign TOE3 then issue LT16.

    Note:

    If ASMT+ Alert is present on ACS, issue LT11 for applicable modules as necessary per guidance in IRM 5.19.4.3.1(5)a-c, Pre-levy Requirements - E2 Processing .

      FNL NOT date is not present for all modules on ACS MOD screen (this means a TC971 AC069 has not posted) Assign TOE3 then issue LT11 for applicable modules.
    No Levy Source is present Telephone number is present Assign TOCn then issue LT16
      No telephone number is present Assign TOI2 then issue LT16 (including accounts with a foreign address or CLC=35.

Action List Return Delinquency Procedures

  1. If the account is no longer assigned to Function S1, no further actions are necessary.

  2. If a telephone number is present, assign TOCN,01 and send LT26.

  3. If a telephone number is not present, assign TOI2 and send LT 26. If the account contains a foreign address, CLC=35, assign the case TOI2 and send the LT26.

Action Requests

  1. The IDRS Action Request list generates based on the input of certain action histories on ACSWeb. While most IDRS inputs are done on-line by CRs, there are some action requests that require direct input to IDRS.

  2. The IDRS Action Request list is downloaded to Control-D daily. The remarks section displays ACRD8003 and the Job Name is ACJDA830.

  3. The site should work the list daily, which will reduce the number of cases residing in S9 waiting to transfer out and for the RD/NC requests, and will provide the timely disposition for these cases.

  4. A list of action history codes can be found in IRM 5.19.5-5

  5. There are 3 common types of action requests:

    • TFRO — transfer to revenue officer

    • RDNN — return delinquency closure

    • NCNN — currently not collectible closure

  6. For all accounts review the IDRS Action Request, the AMS histories and if necessary the ACSWeb action history screen to determine the action needed. Input the appropriate transaction on IDRS using the following command codes:

    • Use CC ASGNI/ASGNB to input a transfer request to a revenue officer.

    • Use CC REQ77 to input NC action requests onto IDRS.

    • Use CC FRM49 to input RD action requests onto IDRS.

  7. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools for a list of mandatory IAT tool. f Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

  8. If you receive an error message on IDRS and the action cannot be completed, reassign the account to CO,01, REJxxxx, where xxxx = the rejected action request. Update AMS comments with reason for rejection.

    Note:

    If account is IMF it cannot be assigned to 8600. Reject account back to originator. This is a BMF assignment number only.

  9. Document AMS history with action taken or the error message on the IDRS screen.

  10. Charge time spent on this program to OFP 810-64800. Point of count taken for each action list processed by a tax examiner.

Receiving and Sorting Incoming Mail

  1. Mail is received numerous times throughout the day in ACSS Clerical Team.

  2. Upon receipt, the clerical team will date stamp all incoming mail with the date the mail is received in the Operation. Mail received after 12 noon (local time) will be considered next day and may be date stamped with the following business date.

    Note:

    Undelivered Mail and Levy Responses are not individually date stamped.

  3. A visual pre-sort and/or IDRS will also be performed to identify incoming mail that will be worked by ACSS and batched, except as noted, into the Account Maintenance System (AMS), includes but is not limited to:

    • TDA Correspondence: All mail regarding, but not limited to, Installment Agreement Requests and Request for Account information or actions (penalty abatements, adjustment requests, balance inquiries, etc.).

    • Financial Information: All Collection Information Statements (CIS) and substantiation documentation.

    • TDI Correspondence: All tax returns and correspondence relating to a delinquent filing only.

    • Collection Due Process: All Form 12153, Request for a Collection Due Process or Equivalent Hearing, or correspondence requesting a CDP hearing.

      Note:

      SB/SE ACSS Clerical teams forward CDP related correspondence and/or forms directly to the CDP teams within ACSS to control and process.

    • Third Party Correspondence: Levy and ACS LP responses. Correspondence can be received from the taxpayer and/or third parties who expect a response from the IRS. For example, a levy source sends correspondence asking if they should continue sending money as the balance on the levy notice is paid. Sort through third party levy responses for returns, remittances, or responses indicating the taxpayer/third parties are expecting a response, and/or indications the taxpayer is in bankruptcy. These levy responses will be worked by tax examiners. This work will not be batched into AMS. All other third party levy responses will be discarded as classified waste.

    • Undelivered Mail: All returned mail from the post office that was not delivered. This work will not be batched into AMS.

      Note:

      A visual sort of the UD mail must be performed to separate UD notices that have specialized processing (e.g., UD NFTL Notices, UD Levy Releases, UD ACS TDI Notices (W&I), etc.).

  4. Mail identified as non-ACSS criteria during the visual sort will be forwarded to the appropriate function/campus. This work will not be batched into AMS and could include, but is not limited to:

    1. Programs that are consolidated in another campus, e.g., ASFR or AUR.

    2. Different BOD

    3. BMF mail received at any IMF only site.

    4. Identity Theft Correspondence: All Form 14039 Identity Theft Affidavit, Form 14394 IRS IMF Identity Theft Affidavit.

    5. Identity Theft Referrals: All Form 12037-B, Identity Theft Case Referral, Form 14394 Identity Theft/Return Preparer Misconduct Case Collection Alert, Form 14566, BMF Identity Theft Referral, and Form 14039-B, Identity Theft Affidavit-Business.

    6. Return Prepare Misconduct Correspondence: All Form 14157,Complaint: Tax Return Preparer, and Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.

    7. Unclaimed funds: For correspondence received from a state treasury department or levy source regarding unclaimed refunds without PII refer to IRM 3.17.64.3. For such correspondence received with PII, refer to IRM 5.19.6.13.2.

    8. Affordable Care Act (ACA) forward to the campus address on the notice.

      Reminder:

      All mail that will be routed out of ACSS is to be forwarded as quickly as identified, within 24 hours when possible.

  5. Visually sorted mail will be further screened using AMS/IDRS and ACS to identify the appropriate OFP (program) and Doc/Sub codes for batching and assigning on AMS and ACS. ACSS will not transship same BOD work between sites. This does not apply to CDP casework. For example: If a W&I case is received by Kansas City ACSS with a California address then KC ACSS will keep and resolve the case, with the exception of the following cases:

    • An account with balances up to ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) and/or up to ≡ ≡ ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF) meet ACSS criteria (campus threshold), regardless of the status (except St. 26 which is assigned to the field and ST60 which is assigned to CSCO). Batch all cases exceeding these thresholds for first read and immediate assignment separate from cases meeting ACSS criteria.

    • When the TIN is not included or present on the correspondence, use the 2-D barcode scanner and/or IDRS Entity Command Codes (CC) to obtain the missing information. Applicable CCs that can be used, but not limited to, are TPIIP, FINDE, and NAMES/NAMEE.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Passport Correspondence: The Fixing America’s Surface Transportation (FAST) Act, signed into law December 4, 2015, created new code section IRC 7345. Under this section, if the IRS certifies that a taxpayer has a seriously delinquent tax deb, the IRS is required to notify the Sate Department of that certification. CP 508C and CP 508R are Passport Certification Notices, forward Passport Correspondence to the Philadelphia ACSS.

  6. Non-ACSS correspondence identified during this process will be routed to the appropriate function/campus and WILL NOT BE CONTROLLED. This may include, but is not limited to:

    1. BOD code is different than the receiving campus.

    2. Account is not in an ACS Status 22/24, TDI-3, or does not refer to a levy or NFTL action.

      Note:

      If there is an existing IDRS/AMS control to an ACSS employee, route the additional correspondence to the appropriate employee. Be sure to update AMS history regarding the additional correspondence. Do not establish another control base or assign on AMS.

  7. If TDI Correspondence includes a balance due module, even if not in Status 22, the correspondence will be worked under the TDA/TDI Combo program, OFP 64120.

  8. After screening of the incoming mail is complete, all remaining correspondence will be batched into AMS by taxpayer TIN. AMS will then control the case on IDRS and send interim letters, as appropriate.

  9. All cases controlled will be assigned to a protective inventory on ACS, as able (e.g., archived ACS accounts cannot be updated). ACSS uses "S4" inventory, except as noted below:

    • CDP Correspondence: All cases must be assigned to "S8" inventory by the CDP Clerical.

    • FERDI: All cases must be assigned to "F9" by ACSS Clerical.

      Note:

      FERDI cases can be identified by the literal "FE" on the ACS Entity screen and/or by "Federal Employee" in the Alerts section of the AMS Summary screen.

    Exception:

    All CDP FERDI cases must be assigned to "S8" upon receipt.

  10. Using ACSWeb, assign cases to the appropriate inventory using "TOxx,60,CORR" (xx = S4, S8, F9, , or ). An example of assigning cases to "S4" is below:

    1. Click on "Reassign Case"

    2. Click on the down arrow in the "Inventory TO" box

    3. Locate and click on "S4 Research"

    4. In the follow-up days block, click on "60" days

    5. In the Literal box, enter "CORR"

    6. Click "Submit"

    Note:

    For Passport Certification Correspondence, using ACSWeb, assign cases "TOS4,60,CRPSPRT"

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  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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      Note:

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

      Note:

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TDA/TDI Correspondence

  1. Instructions for processing taxpayer correspondence are in the following sections. See IRM 21.3, Taxpayer Contacts for general information on correspondence.

  2. ACS will adhere to Policy Statement P-21-3 (formerly P-6-12) guidelines as set forth in IRM 21.3.3, Incoming and Outgoing Correspondence/Letters.

  3. ACSS employees may make out calls before sending a letter to resolve taxpayer correspondence, for example:

    • To clarify financial information received from the taxpayer.

    • To request faxed substantiation from the taxpayer instead of issuing a correspondex letter.

    • Financial information provided differs from amount proposed by taxpayer.

    • In any instance where a call would expedite resolution of the case.

  4. Cases not on ACS but requiring a response or other action that meet Policy Statement P-21-3 (formerly P-6-12) criteria will be documented on AMS.

  5. Correspondence is all communications from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

    1. Written communications in response to IRS requests for information or data.

    2. Written communications, including annotated notice responses, that provide additional information or dispute a notice.

    3. A telephone call that results in a written referral or research Form 4442.

    4. Incoming FAX issues meeting correspondence criteria.

  6. See IRM 21.3.3.2, What is the Definition of Correspondence? - Policy Statement P-21-3 (Formerly P-6-12) Exclusion list, for a list of items not meeting Policy Statement P-6-12 criteria.

  7. The key to identifying taxpayer correspondence is to ask the following questions:

    • Is the taxpayer waiting for a response from us?

    • Is the taxpayer waiting for an action to be taken by us?

    • Is taxpayer asking a question?

  8. Accounts with balances up to ≡ ≡ ≡ ≡ AAB (CC SUMRY) (BMF) and/or ≡ ≡ ≡ ≡ AAB (CC SUMRY) (IMF) meet ACSS criteria. See IRM 5.19.1.4.1(4), Account Actions on Referral/Redirects for additional guidance. There may be non-St. 22 cases batched into AMS that meet this criteria.

  9. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools for a list of mandatory IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

  10. Charge time spent on processing correspondence to 810-6412X (TDA) or 810-6413X (TDI).

Affordable Care Act (ACA)

  1. Starting in 2014, the individual shared responsibility provision in IRC 5000A calls for each individual to have minimum essential health coverage (known as minimum essential coverage (MEC)) for each month, qualify for a coverage exemption, or make a Shared Responsibility Payment (SRP) when filing their Federal income tax return. 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.

  2. MFT 35 Tax Class 2 File Source 1 is the IMF (Individual Master File) MFT for the Individual Shared Responsibility Payment.

  3. The SRP balance due (MFT ) (or mirrored assessment MFT 65) is not subject to a Notice of Federal Tax Lien filing, a levy on the taxpayer’s property, or the failure-to-pay penalty. Interest will continue to accrue until the total SRP is paid. The Service may offset federal tax refunds to SRP amount until it is paid in full.

  4. A standalone SRP occurs when a balance due is created on a module with MFT 35 File Source 1 (SRP 5000A) and there is no other Balance Due module with a different MFT in Status 22, 24, or 26, nor a TDI module in status 03. If an additional SRP balance due occurs in a subsequent year, and still no other modules with a different MFT, it is (they are) still considered a standalone SRP.

  5. Standalone SRP modules will be subject to a recess, that is routine collection activities will temporarily halt. Five cycles after the third notice has been issued, a systemic TC 530 with closing code 35 will recess a standalone SRP. SRP modules that are not stand alone will continue past the third notice and follow normal processes to be issued to ACS, Field Collection, and the queue. SRP modules can be recessed manually following guidance provided by the applicable functional area.

  6. ACS Inventory F8 will house MFT 35 only accounts in addition to current TDI only accounts.

  7. The system shall block accounts with only MFT 35 and 65 open mods from being transferred into certain inventories [R5,E3,E4 (levy inv), R7,R9 (lien inv), I8,E2 (new receipts – manual LT11 inv), or I6,E5 (levy follow-up inv)].

    Note:

    MFT 35 can be considered when making NC03, NC09, and NC12 case determinations in conjunction with other balances owed.

  8. When an MFT 35 is worked with associated modules, it will have the closing actions of all associated modules. This leaves the audit trail that the case was worked and a collection determination made

    Note:

    The only minor “exception” to this rule is if all other modules have been satisfied, leaving the MFT 35 as a standalone after it has been assigned, a management official can the manually input TC 530 CC35 since it then meets standalone criteria.

  9. The Employer SRP is not in effect at this time.

Individual Shared Responsibility Payment (SRP) -- MFT 35 (IMF Only)
  1. Individual Shared Responsibility Payment (SRP) modules will be identified using Master File Transaction Code (MFT) 35.

  2. MFT 35 modules can standalone. A standalone SRP occurs when a balance due is created on a module with MFT 35 File Source 1 (SFP 5000A) and there is no other balance due with a different MFT in Status 22, 24 or 26 and a TDI module in Status 03. Standalone MFT 35 will be closed with NC35 (Recessed). NC35 cannot be used if there is an open TDI. Manual research needs to be completed prior to closing.

  3. Only a manager’s profile will have the ability to input NC35 on the ACS System. If an NC35 is necessary, reassign the account “TOS0,05,NC35” and document AMS with the reason for the NC35 request.

  4. A new module(s) that is sent to either Status 22, 26 or 24, MF will send the MFT 35 TC 530 CC 35 to IDRS to join related modules in the current assignment. IDRS may systemically reverse the status code. If it does not, the assigned employee can input the reversal or work in the current state. However, there are circumstances where a MFT 35 with TC 530 CC 35 will not reactivate:

    • Additional standalone for MFT 35 (subsequent) modules will continue to go to TC 530 CC 35, recess.

    • Modules closed by deferral or tolerance procedures that never make it to assignment will not reactivate.

    • A new TDI module will not reactivate it.

  5. If an additional SRP balance due occurs in a subsequent year, and there are still no other balance due modules with a different MFT, the MFT 35 modules are still considered a Standalone SRP.

  6. Standalone SRP module(s) will not be assigned to ACS. A MFT 35 SRP module will only be assigned to ACS if there is an existing account on the system with other MFT modules.

  7. MFT 35 modules are not subject to Notice of Federal Tax Lien (NFTL) or levy procedures. See IRM 5.19.6.13.1(4), Affordable Care Act (ACA), for additional information.

  8. MFT 35 modules will not be considered when determining tolerance or deferral dollar amounts.

  9. MFT 35 modules will not be considered when determining whether a case meets NFTL filing criteria. See IRM 5.19.4, Enforcement Action, for additional information.

  10. If correspondence is received and the account includes a MFT 35 module with other accounts in ACS Status, follow normal processing procedures to resolve the taxpayer’s issue(s).

    Note:

    A FERDI MFT 35 stand-alone will be initially assigned to F8. FERDI correspondence is worked by Support out of the F9 inventory. Correspondence received on stand-alone should be worked in F9 and the case moved back to F8 upon completion.

Collection Appeal Rights and the Employer Shared Responsibility Provision (ESRP)
  1. Beginning in calendar year 2015, employers employing an average of 50 full-time employees or a combination of 50 full-tme and full-time equivalent employees on business days in the prior year (i.e., number of during 2014 is used to determine the liability for calendar year 2015) are subject to the Employer Shared Responsibility provision under IRC 4980H.

  2. ESRP assessment may be included when issuing a levy or filing of a Notice of Federal tax Lien when an employer fails to pay the ESRP imposed by IRC 4980H.

  3. The ESRP assessment are processed on the Business Master File (BMF) under MFT 43.

  4. Additional information may be found in the following IRMs:

    • IRM 5.19.4.1.2, Affordable Care ACT(ACA)- Employer Shared Responsibility Provision

    • IRM 20.2.11.14, Affordable Care Act (ACT)

    • IRM 21.3.1.5.115, Employer Shared Responsiblity Notices.

Screening/Scanning Incoming Mail

  1. You will receive taxpayer inquiries that are not asking for research, abatements, or information. These cases will be resolved by screening the cases when first received, within 24-48 hours. The following are examples of situations that require expeditious processing, this list is not all inclusive:

    • If the account is in R2 or S7 (Taxpayer Advocate) forward to ACSS TAS Liaison.

    • If the correspondence indicates any of the following: bankruptcy, in tax court , insolvency, or deceased, batch for immediate assignment.

    • If in S8 (Collection Due Process inventory) or Form 12153, Request for a Collection Due Process or Equivalent Hearing is attached, forward to the CDP Department.

  2. Other correspondence may be attached to notices, quick notes, or levy responses. These cases may require some research such as sending the taxpayer an account summary, account balance, or verifying a payment. Correspondence must be placed in AMS by taxpayer TIN. AMS will control the case in IDRS and send the interim as necessary. Assign the case to S4 using "TOS4,60,CORR" . Some types of correspondence received may request or indicate the following:

    • A request for an account summary and/or account balance.

    • A request for an installment agreement, promise to pay in the future, or states currently making payments. - including submitting a Financial Statement.

    • TP refuses to pay.

    • A claim for refund.

    • A request for abatement of tax, penalty and interest.

    • Indicates the account is in bankruptcy or will be filing bankruptcy.

    • Indicates the taxpayer does not understand or disagrees with an additional assessment (Exam, AUR, ASFR/SFR, etc.).

    • Indicates the taxpayer is deceased or incarcerated

    • Indicates the taxpayer is not liable, no longer in business, or a defunct corporation.

    • A request to release a Levy or Notice of Federal Tax Lien (NFTL)

    • A request to search for a missing payment.

    Reminder:

    Check the envelope for possible discovered remittance following the instructions in IRM 3.8.46.1, Discovered Remittances.

  3. Correspondence must be placed in AMS by taxpayer TIN. AMS will control the case in IDRS and send the interim as necessary. Control all correspondence by the later of 14 days from the earliest IRS received date or 5 business days (including the day of receipt) from receipt in ACS Support (controlling area). (The 7-business days applies to correspondence that routed to ACSS from another function within the IRS.)

  4. Within 24-48 hours of when the case is received in ACSS, reassign the case to the appropriate inventory using "TOxx,60,CORR" (xx = S4, S8, F9, or K3, ).

  5. When performing the First Read screening process on taxpayer correspondence and the account reflects the BOD is not the same as your site (e.g., SB/SE receives correspondence but BOD indicator is WI) route the taxpayer correspondence to the appropriate ACSS Site for that BOD. Send an 86C letter to inform the taxpayer the case has been transferred to another site - provide the site information in the letter.

  6. If the BOD changes after the case has been assigned to a Direct OFP or if the BOD has changed since being assigned from First Read (e.g., SB/SE to WI), the ACSS Site will retain the correspondence to work to resolution. Do not route the correspondence to the other Site/BOD to process.

Wrongful Levies

  1. A wrongful levy is one that resulted in the remittance of property (e.g., a bank account) to which the taxpayer has no rights.

    Example:

    A levy source has paid funds to the Internal Revenue Service from an account of a non-liable party.

  2. If the proceeds have not been forwarded, the levy should be released and no claim for refund processed. Follow the levy release procedures outlined in IRM 5.19.4.4.10, Levy Release: General Information .

  3. Refer to IRM 5.19.4.4.12, Wrongful Levies, for additional processing procedures.

Erroneous Levy, Reimbursement of Bank Charges

  1. Policy Statement P-5-39 provides the Service reimburse taxpayers for bank charges that result from erroneous levies. In addition to the bank's fee for processing levies, this includes charges for overdrafts directly caused by the levy. The claim must be filed with the Area Director or Field Director, Compliance Services who issued the levy, within one year after the expense accrues.

  2. The following must be met in all cases:

    • The Service must have caused the error.

    • The taxpayer must not have contributed to continuation or compounding the error.

    • Before the levy was issued, the taxpayer must have responded timely to any contact and provided requested documentation sufficient to establish his/her position.

  3. If the claim is valid, it may take 2 to 4 weeks for a refund of the bank charges after the claim is received by the IRS Finance Center in Beckley, WV (BFC). BFC will not notify Compliance Services that the claim has been paid.

  4. Processing Claim:

    If Then
    Taxpayer files a claim on Form 8546 within 1 year from the date of the bank charges. Claim cannot exceed $1,000 and must have a valid signature.
    Joint bank account levied. Both taxpayers must sign Form 8546.
    Any information is missing; signature, copy of levy, proof of bank charges, Form 8546. Return claim to taxpayer requesting missing information.
    The claim doesn't meet criteria Send brief disallowance letter indicating reason for denial.

    Note:

    When the original claim is returned to the taxpayer as incomplete, the taxpayer should be given a specific deadline to re-submit the requested information, not to exceed 21 days. A copy of the Form 8546 should be retained in a suspense file until the taxpayer returns the requested information or the deadline to respond has lapsed.

  5. ACS and IDRS Research - in most cases the account will no longer be on ACS because it has been paid in full. If the account is not on ACS, make prints of all ACS archive screens. Review the activity on ACS to determine when and why the levy was issued. Research IDRS/ACS to determine if reimbursement should be granted based on:

    • Adjustments made to the account that would have delayed or negated the levy.

    • Transactions that would have caused the levy to have been issued in error.

    • Letters or open controls that could have affected the levy issuance.

    • The LT11 was not issued or the levy was issued before the 30 day time frame for the LT11 has elapsed.

    • The taxpayer paid the liability, but the payment was not credited properly to the account.

    • .The levy was issued after the IRS had accepted the IA for processing.

    • The levy was issued during the 30 days immediately following the rejection of the proposed IA.

    • The levy was issued during the period that the Office of Appeals is considering a timely filed appeal.

    • The taxpayer contacted ACS and was given time to pay the account, but a levy was issued before the deadline expired.

  6. Preparing the Case File - Prepare a memo for the approving official explaining the facts of the case that led to the levy, include any documentation that confirms or contradicts the taxpayer's statement. Each folder must have a file control sheet attached to the front of the folder showing the received date, the taxpayer's name, address, form, tax period, amount of the claim and the employee's profile number. This form will be used to file the folder when the case is completed.

    Note:

    Authority has been delegated to second level supervisors grade GS-13 or above in all Operating Divisions and the Taxpayer Advocate Office and may not be redelegated. See Delegation Order 1.4, found in IRM 1.2.40.5.

  7. As of May 1, 2007 claims under $1,000 (small claims) are processed and paid by IRS Finance Center, Beckley, WV under authority granted by the Bureau of Fiscal Service (BFS). FMS Form 197, available on the FMS web page, http://fms.treas.gov/judgefund/forms.html is used to transmit claims to BFS for processing.

    Note:

    Do not use Form 197-A; always use Form 197.

  8. Approved Claims:

    If Then
    The claim is allowed in full Complete Form 197. Send claim directly to IRS Finance Center, Beckley, WV using Correspondex Letter 2180C with Form 8546 , Claim for Reimbursement of Bank Charges, Form 197 and Form 3210 , Document Transmittal, for processing. Send Correspondex Letter 2179C to taxpayer advising the claim has been processed and it will take approximately 2 to 4 weeks to complete.
    The amount claimed is different from amount allowed. Form 197 must be prepared in triplicate and sent to the taxpayer for signature using letter 2179C. The taxpayer must sign and return two signed copies to IRS.
    The signed Form 197 indicates the taxpayer has accepted the change in the money amount. Prepare Correspondex Letter 2180C and send to IRS, Finance Center, Beckley WV with a Form 3210 for processing.
  9. Each Form 197 sent for processing must be numbered with a unique claim number consisting of the campus acronym (e.g. PSC ACS) followed by the processing year and sequential number 01, 02, etc. Each office will maintain a log sheet of assigned numbers.

    Example:

    PSC ACS 2001 -- 01, PSC ACS 2001 -- 02

    These forms will be forwarded to Beckley on Form 3210. Enter the claim number in the form's Transmittal Code block. If more than one Form 197 is forwarded on the Form 3210, list each of the corresponding claim numbers on the Form 3210 and also enter the first one in the Transmittal Code block.

Reimbursement of Bank Charges Due to Direct Debit Installment Agreement Processing Errors

  1. On January 13, 2011, the Deputy Commissioner for Services and Enforcement amended Policy Statement 5-39, Reimbursement of Bank Charges Due to Erroneous Levy and Service Loss or Misplacement of Taxpayer Checks, or Direct Debit Installment Agreement Processing Errors. The amendment to Policy Statement 5-39 (P-5-39) added claims for reimbursement of bank charges incurred due to IRS processing errors on Direct Debit Installment Agreements (DDIA). The Commissioner revised Delegation Order (DO) 1-4 (Rev. 1) to allow first level managers in IRS Operating Divisions to consider, ascertain, adjust and determine under 31 USC § 3723 claims for reimbursement of bank charges arising out of Direct Debit Installment Agreement (DDIA) processing errors.

  2. If the IRS did not process the DDIA in accordance with IRM 5.19.1.6.4.13, DDIA, or IRM 21.3.4.12.5.6.1, Direct Debit Installment Agreement - Form 433D, Installment Agreement and Form 9465, Installment Agreement Request, the taxpayer may be entitled to reimbursement of their bank fees that were not reversed by the bank. DDIA processing errors are identified if the following criteria are met:

    1. The Service failed to act timely, took an incorrect or improper action, or a systemic failure caused the bank fees;

    2. The taxpayer must not have contributed to the continuation or compounding of the error that caused the bank fees; and

    3. Prior to the processing error, the taxpayer did not refuse (either orally or in writing) to timely respond to the Service's inquiries or provide sufficient information for the DDIA processing change to be made.

  3. Form 8546, Claim for Reimbursement of Bank Charges, must be signed by both taxpayers if joint return. Form 8546 should be math verified to ensure the taxpayer is ONLY claiming the amount of bank charges shown on bank statements that are a result of a Service DDIA error. If the claim amount is incorrect or the taxpayer has included an erroneous debit in the amount, request an amended Form 8546 from the taxpayer. Acceptable verification includes bank statements showing the bank charges and copies of bank statements for each subsequent month showing the bank charges were not reversed up to the filing of the claim; or a statement from the bank stating the charges have not been and will not be reversed by the bank. The statement needs to be on the bank's official letterhead.

    • If the facts indicate bank fees are a result of a DDIA processing error, systemic error, or the Service failed to process the request/change within IRM guidelines/timeframe, document the case facts and/or reason for recommendation to reimburse.

    • If the facts indicate the Service did NOT err and/or the DDIA request was processed within IRM guidelines/timeframe, document the case facts and/or reason for recommendation to disallow claim for reimbursement.

  4. The Kansas City (KC) ACSS function will make a determination to allow or deny the claim. If approved, KC ACSS will forward Financial Management Services (FMS) Form 197, Judgment Fund Voucher for Payment, to Beckley Finance Center (BFC). Approved claims may take 4 - 6 weeks before the taxpayer receives the reimbursement check if they did not request Direct Deposit. The KC ACSS function will update AMS with action(s) taken.

  5. If the claim is denied, KC ACSS will issue a denial letter as to the reason the claim was denied. There are no Appeal Rights for these claims.

  6. Claims must be made within one year of the date the bank fees were debited to the taxpayers account and are limited to $1000 (See 31 USC § 3723.)

  7. Occasionally, the IRS may erroneously debit a taxpayer's bank account. Erroneous debits include IRS initiated duplicate debit entries, debit entries in an amount greater than authorized by the taxpayer under the DDIA.

  8. If the IRS erroneously debits the taxpayer’s bank account in violation of the DDIA, and the taxpayer does not seek reimbursement directly from his bank then the IRS must return the erroneous payment to the taxpayer. Thus, once an erroneous debit has been identified, and the IRS has confirmed that the taxpayer is not seeking reimbursement from his bank, the IRS should immediately take steps to return the erroneously debited funds using manual refund procedures. See IRM 5.1.12.20.1, Manual Refund Procedures.

    Note:

    In order to initiate the return of the erroneous debit, all that needs to be established is that the debit entry is erroneous. The taxpayer does not need to establish hardship or any other criteria. However, if the taxpayer instructs the IRS to apply the erroneous debit entry to the tax liability, the IRS may follow the taxpayer' instruction.

  9. For further information on processing Form 8546, IRM 5.19.6.13.4(7), Erroneous Levy, Reimbursement of Bank Charges.

Closed Case Assembly

  1. Clip together all materials associated with the case, including correspondence being sent to the taxpayer.

  2. Include OFP code, date closed and IDRS tax examiner number on all work. For Levy Responses only, include this information on the cover/quality review sheet.

  3. Ensure all items to be routed are properly addressed, e.g., routing slips, envelopes, buck slips.

  4. Place all loose envelopes to be mailed at the front of the closed folder to ensure proper mailing.

  5. Keep individual programs separate in your closed case folder.

  6. All items that are to be destroyed, should be clearly marked. For processing of Levy Responses only, rather than marking each response as destroyed, the cover sheet should be clearly notated "DESTROY" or similar.

Stripping of Closed Work Folders

  1. Stripping of closed work will be conducted by designated area after the work has been subjected to Quality Review.

  2. Place all re-routes in appropriate mail buckets in the Control & Support area.

  3. Place all work marked to be destroyed in designated classified waste container.

  4. Route adjustment folders as directed.

  5. Place envelopes in designated out going mail container.

  6. Return any questionable items to tax examiner, e.g. original documents, birth and death certificates and tax returns containing original signatures.

  7. Items not clearly marked for disposition should be returned to the originator.

  8. Once closed folders are stripped, return to appropriate team.

LP Responses Overview

  1. Third party correspondence consists of responses to letters sent to third parties, requesting information to locate the taxpayer and their assets. The information received is input to ACS.

  2. The following responses are worked according to 3rd party procedures:

    • LP 47, Address Information Requests (sent to Post Office)

    • Form 4759, Request for Additional Information from the Post Office (seeks street address)

    • LP 61, Please Provide Information on the Named Person (sent to potential employer)

    • LP 62, Please Give Us Some Information (sent to potential financial institution)

    • LP 64, Please Help Us Locate a Taxpayer (sent to other third party)

      Note:

      See IRM 5.19.5-2, ACS Letters (Reference: IRM 5.19.5.3.4 and throughout the entire IRM 5.19.5), for complete letter content.

LP Responses Procedures

  1. Access the account on ACS. Input any pertinent information on the case in history and if needed in AMS narrative using standard ACS Abbreviations per IRM 5.19.5-4, Standard Abbreviations for Use in Account Management Services, AMS and/or ACS (Reference IRM 5.19.5.3.5).

  2. "OALP" is used for the history updates with the literal LPxxY or LPxxX, where the "xx" refers to type of LP letter (e.g. 47, 61, etc.). The "Y/X" indicates if pertinent information was given or not. "Pertinent information" must be entered in AMS narrative which includes:

    • Potential new address, home, or work phone number to contact the taxpayer.

    • Potential new employer, employer address, or work telephone numbers

    • Potential contacts of people who may be able to locate the taxpayer.

    • Whether the 3rd party is responsible for paying the taxpayer money for work, contracts, pensions, or unearned income, and type of income.

    • Whether the taxpayer is employed by or has an account with the 3rd party.

    • If the taxpayer is hospitalized, incapacitated, or other information that will affect the taxpayer's ability to respond/pay.

    • Any other information that can help locate the taxpayer.

    • If 3rd party provides no information, notate that LP letter was returned with no information.

      Note:

      When you encounter a 3rd party reply that states that the taxpayer is deceased or bankrupt, sort, and work under R4 procedures.

LP 47 Decision Chart

  1. Use the following decision chart to determine correct action:

    If Then
    Mail is delivered to address given Enter "ADRSD AS GVN and first 4 characters of address in query" in AMS narrative.
    Taxpayer not known at address given Enter "UNK and first 4 characters of address in query" in AMS narrative.
    Taxpayer moved and left no forwarding address Enter "MLNFA and first 4 characters of address in query" in AMS narrative.
    "No such address" Enter NS ADRS and first 4 characters of address in query in AMS narrative.
    States something other than above Enter the information.


    Enter OALP,##,LP47Y for the history (Y per comments entered). The fill-in "##" refers to the number of days entered for the follow-up date.

Form 4759

  1. Enter information provided by the post office into AMS narrative. Enter OALP,##,F4759Y, for the history (Y per AMS narrative).

LP61 & LP62

  1. Refer to the levy response instructions for levy deletion codes and for guidelines concerning pertinent information to be documented in the AMS narrative.

  2. If the levy source refuses to provide information notate the reasons and other pertinent information in AMS narrative.

  3. Use the appropriate levy deletion codes per IRM 5.19.4.4.8(2), Next Action After Levy Response , when deleting the levy source. On ACS Web Levy screen, use history code, where "nn" refers to number of the levy being deleted, "#" refers to the single digit levy deletion code and "NMCL" refers to the name control of the levy source.
    LP 61 Decision Chart

    If Then
    Response is from an employer or wage source and states no longer employed, no record, no account, or company out of business.
    1. Delete levy source. See IRM 5.19.4.4.8(2).

    2. Add any new information that the levy source provides to AMS narratives. See note following chart for special address update cycle considerations.

    3. Update ACS Web history. See ACS history codes, IRM 5.19.5–6, ACS History Codes (Reference IRM 5.19.5.3.3).

    Response is from a financial institution or source other than "wage" such as "interest" and states no longer employed or no record of employment .
    1. Do not delete the levy source.

    2. If levy source provides new or corrected name, address or phone number information, update/revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information in AMS narrative.

    3. When any levy source information is updated on the ACS Web Levy screen, update the levy source cycle by selecting "Yes" or "Reconf" as appropriate on the ACS Web Levy detail screen and clicking on "Modify" .

    4. Add any new information provided by the levy source to the AMS narrative.

    5. Update ACS Web History. See ACS History Codes, IRM 5.19.5–7.

    Response from a financial institution or source other than "wage" such as "interest" and states account closed or no record.
    1. Delete the levy source. Per IRM 5.19.4.4.8(2). Even though the LP61 for wage source was sent, an appropriate response was received based on the income source.

    2. Add any new information that the levy source provides to AMS narrative.

    3. Update history on ACS Web history.

    Response states taxpayer employed with levy source.
    1. If the levy source provides new or corrected name, address or phone number information, update / revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information in AMS comments.

    2. Update the ACS Web Levy detail screen by selecting "Yes" or "Reconf" as appropriate and clicking on "Modify" .

    3. Update the work telephone number on ACS Web if this information is provided by the employer.

    4. Add any other new information provided by the levy source to the AMS narrative.

    5. Update ACS Web history.

    Note:

    Check the address update cycle on ENMOD. If the taxpayer's address has been updated since the last date of employment:
    • Do not enter any potential new taxpayer addresses
    • Enter a potential new home phone number given if the taxpayer still lives in at least the same city or state.
    • Enter potential new contacts, employers, or work numbers which are still good possible sources of information.


    LP 62 Decision Chart

    If ... Then ...
    Response is from a financial institution and states no account, no record, or account closed.
    1. Delete levy sources. See IRM 5.19.4.4.8(2).

    2. Add any new information that the levy source provides to the AMS narrative.

    3. Update ACS Web history.

    Response is a financial institution and states that the taxpayer has an open account, no fund, or an overdrawn account.
    1. Do not delete levy source.

    2. If the levy source provides new or corrected name, address or phone number information, update /revise the ACS Web Levy detail screen as the system allows. If the system will not allow the changes, enter the information on AMS.

    3. Update the ACS Web Levy detail screen by selecting "Yes" or "Reconf" as appropriate and clicking on "Modify" .

    4. Add any other new information provided by the levy source to the AMS narrative.

    5. Update ACS Web history.

LP 59

  1. LP 59 responses are to be considered levy responses and worked according to the procedures in IRM 5.19.4.4, Procedures for Levy Responses.

Levy Responses

  1. Effective October 1, 2017 ACSS employees will only process levy responses from taxpayers and third parties which have been determined to be correspondence. All other levy responses will be discarded as classified wasted. See IRM 5.19.6.12, Receiving and Sorting incoming Mail, for more information.

  2. If the response indicates the taxpayer is deceased, check the update AMS history with any decedent information provided and move the case .TOR4,,DECD

  3. For all other responses follow the guidance in IRM 5.19.6.13, TDA/TDI Correspondence

  4. Report time and volume using OFP 810-64141.

Internal Correspondence

  1. Sometimes while processing ACS correspondence, it becomes necessary to contact another area or campus to ensure proper resolution of the taxpayer's account. Some areas will have "internal use only" phone numbers that can be used to quickly resolve issues (check SERP under the "Who and Where" tab for the area you need to contact). When an account inquiry can be completed online, there is no need for written documentation except when specifically required in the IRM instructions. If this option is not available a written referral is used.

  2. A written referral is a standard way of exchanging information. An inquiry is generally written up as a referral when the following conditions exist:

    • The inquiry requires additional research or information to provide the taxpayer with a complete and accurate response.

    • The action to be taken needs to be completed by another site or function.

    • The account is controlled to the Taxpayer Advocate Function or some other area that takes precedence.

  3. Because it is important that these contacts are done in a consistent and professional manner, various forms are available. The type of referral will determine which form is used. These forms are used to share information, so you may be the initiator or the recipient. The forms are routed through the clerical unit, sorted and batched to the contact area. Below are the written referral forms most commonly seen in ACS Support:

    • Form 4442, Inquiry Referral.

    • Form 3870, Request for Adjustment.

    • Form 4159, Payment Tracer Request.

      Note:

      Form 4442, Inquiry Referral, is available for on-line input through AMS.

  4. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools for a list of mandatory IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

Form 4442, Inquiry Referral

  1. Form 4442 is used for most written referrals, unless the area being contacted has another specific form that must be used. ACS Support uses this form for general written inquiries to other areas, such as:

    • to request CP 2000, Request for Verification of Unreported Income, Payments, or Credits or certified listings from outside your home campus

    • to expedite information about bankruptcies to the proper area, or

    • to refer information to another tax examiner.

  2. A complete and correctly prepared Form 4442, Inquiry Referral is essential for the resolution of a taxpayers' inquiry. Referrals must be legible and contain sufficient detailed information to allow the receiving function or office to identify the taxpayer's issue and the reason for the referral.

  3. Do not use ACS abbreviations.

  4. When initiating Form 4442, be sure to complete Part 1, Part 2, numbers 8 through 24 and Part 3, Section B.

  5. If you are the recipient of Form 4442, in addition to taking the required action you may also be required to complete Part 3, Sections A & C and respond to the taxpayer/initiator.

    Note:

    Refer to IRM 21.3.5 for line by line instructions for completing Form 4442.

Form 3870, Request for Adjustment

  1. This form is specifically used by the field function to request an adjustment to an account.

  2. Form 3870, Request for Adjustment will be received requesting full or partial tax adjustments or penalty abatements. It must include specific information as to the modules involved and the reason for the adjustment or penalty abatement. If the form is unclear, or doubt exists to the correctness of the request, contact the originator for clarification.

  3. If an adjustment to tax is required, follow the appropriate procedures in the following IRMs:

    • IRM 21.5, Account Resolution

    • IRM 21.6, Individual Tax Returns

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

    Note:

    Use the Form 3870 as your source document.

Form 4159, Payment Tracer Request

  1. Form 4159, Payment Tracer Request, is used to request payment tracer action. This form can be initiated in ACS Support. Follow procedures in IRM 21.5.7, Payment Tracers.

Third Party Upload - Manual Input Required

  1. This list is generated weekly and is downloaded to Control-D. The remarks section displays ACRW5300 and the Job Name is ACJWA531. It identifies cases where the ACS system upload of ACS LV/LP actions as stated in IRM 5.19.5.10, Notification of Third Party Contact, was not attempted because the name line discrepancy (NL) indicator was set. That means that there are differences in the name lines among the tax modules. In these situations, the system currently cannot match names and modules to ensure that it is reported accurately.

  2. For each entity, the list shows the edited TIN, name control, the LV/LP History Code and definer, and the contact date.

  3. TIN access each case on ACSWeb and review the ACS Modules screen for name line discrepancies - focusing on the name line for each module.

  4. Prepare Form 12175, Third Party Contact Report Form, as necessary using instructions in IRM 5.19.5.10.

  5. Route completed Forms 12175 as stated in IRM 5.19.5.10.

  6. This list should be completed within one week of receipt.

  7. The completed list should be retained for internal quality review purposes; afterwards, it may be destroyed.

Systemic Upload of ACS Transactions

  1. Some ACS closing actions are systemically read and transaction codes created to post to Master File via the Standardized IDRS Access (SIA). This process eliminates the need for a CSR to toggle to IDRS to enter closing information. The following action history entries are analyzed for systemic upload:

    1. TFRO with definer 6501 or 6566.

    2. TFQU transfer to Collection queue (TFQU 7000)

    3. Transfer to ASFR (TFQU 8000)

    4. RDxx (return delinquency closing TC59x)

    5. NCxx (currently not collectible TC530)

  2. If the transaction can be created electronically, the transaction code, closing code and/or TFQU is created and posted to IDRS. The employee number on electronically created transactions is all 8's (88888888).

  3. Items that are not electronically created are treated as paper action requests.

  4. ACS lists are:

    • Service Center Error List (ACRW 1501)

    • ACS Diagnostic List (ACRW 8001)

    • ACS-IDRS Balance List (ACRD 7301)

  5. Some transactions may not be processable once electronically created and will appear on the ACRD5301 - ACS Transactions IDS Upload Error Report.

  6. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools, for a list of mandated IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

  7. Charge time spent to 810-64500 and take a point of count for each case reviewed by a tax examiner.

Processing the SC Error List (ACRW 1501) and the SC Diagnostic List (ACRW 8001)

  1. IDRS Control Group lines out some of the accounts on the service center error list. The remaining Z2 (TDA) and Z3 (TDI) records will be processed by ACSS.

  2. Process the Z2 and Z3 records per (3) through (8) below.

  3. Research IDRS for the MFT, tax period, balance due, DOAO, TSIGN, and IDRS status.

  4. Enter History Code TFQU if one of the following:

    1. IDRS shows more modules with ACS indicators than are present on ACS.

    2. ACS has more modules than IDRS has ACS indicators and the error record has no ACS indicator.

  5. Process accounts from which IDRS shows the same number of modules with ACS indicators as are present on ACS as follows:

    1. Enter the changed data shown on IDRS into the ACS comments field.

    2. Enter OADT,07 to allow the weekend update to correct ACS.

  6. Forward ACS accounts for which IDRS shows no modules with ACS indicators to the manager for removal. Input ACS History Code ZAP1.

  7. Process ACS accounts for which IDRS shows no data available as follows:

    1. Use CFOL CC IMFOL/BMFOL to request the account from the MF.

    2. If the account has satisfying transaction codes posted (full paid, CNC etc.) ask the manager to remove the case from ACS.

    3. Input ACS History Code ZAP1.

  8. Process accounts which do not have a satisfying transaction posted as follows:

    1. Input CC MFREQ to establish the account on IDRS.

    2. Notify the IDRS control group of the problem.

  9. Z4 records can be ignored as they do not affect the creation of levy sources to the database. Contact your HQ analyst when there are high volumes of Z4 records on the ACRW1501 report.

  10. Note the action taken on the listing and retain for six months.

IDRS/ACS Balance List 7301

  1. One list is printed for the purpose of resolving mismatched between IDRS and ACS. It is: ACRB7301, Missing ACS Account Report (modules on IDRS but not on ACS).

  2. The list must be run and processed weekly.

    Note:

    Working these mismatch lists at frequent intervals helps prevent inappropriate actions when ACS has not received proper updates from IDRS. It may help identify other system problems.

  3. The reason for the discrepancy between ACS and IDRS is identified on the list. The balancing looks at TIN, name control, AOTO, branch group, employee code, MFT, Tax period and TDA/TDI indicator.

  4. Research each TIN on ACS and IDRS that appears on the report.

    1. If the case meets tolerance criteria, input a TC530 CC09.

    2. If there is no account on ACS, enter ASIGN(I)(B) 7000 on IDRS to reassign the case to the queue, or if one of the exceptions in Exhibit 5.19.5-7, Field Queue Bypass Criteria (Reference IRM 5.19.5.3.1), is present, have a manager enter the direct field assignment on IDRS.

    3. If the account is on ACS, compare the open modules. If there is any module open on IDRS with and ACS indicator that is not open on ACS, enter TFQU, or forward the case to a manager to enter TFRO if the case meets one of the exceptions in Exhibit 5.19.5-7.

    4. If there is no mismatch, take no action.

ACS Transactions IDS Upload Error Report - ACRD 5301

  1. Error report ACRD 5301 is a daily report that identifies entity and modular conditions that mismatch with the records on IDRS or the transaction code/closing code is invalid. The errors can be from IDS as well as weekly systemic removal of aged cases. The following error codes require 100% review. Other error codes can be ignored as they do not effect the creation or posting of the transaction.

  2. Error Code 6 - Invalid Name Control - name control on ACS does not match name control on IDRS.

    • Research IDRS to determine if module(s) are still on IDRS. If so, enter closing transaction(s) directly to IDRS.

    • Request manager to ZAP account from ACS.

  3. Error Code 8 - Update Invalid - Memo Account/Module - Account re-sequenced to a new TIN.

    • Research IDRS for the new TIN

    • If account is on ACS under new TIN, enter the transaction and closing code directly to IDRS.

    • ZAP the account under the old TIN.

  4. Error Code 7 - Account/Module not on IDRS 0- ACS did not receive earlier closing record(s) from IDRS. ZAP account from ACS.

  5. Error Code 30 - Invalid Closing Code - the requested closing code is not valid with requested transaction code.

    • If the closing code is 39 (systemic removal of aged cases) enter a new action code on ACS for transfer to queue (TFQU).

    • For all other transaction codes review AMS narratives and or action history fields to see if the correct transaction code and closing code was entered when the action history was requested. Reenter the closing transaction directly to IDRS using CC REQ77; the account should drop from ACS after the transaction has posted.

Excess Levy Source List

  1. The Excess Levy Source List is generated for ACS accounts that have all 15 levy source fields full and additional levy sources are passed from IDRS.

  2. The list downloads onto Control D weekly. The remarks section displays ACRW7007 and the job name is ACJWA720.

  3. Review the lists and, if it provides potentially more productive levy source(s), delete any existing low potential source(s) and add the new source(s). See IRM 5.19.4.3.5, Levy Sources and ACS Display , for information about levy priorities and display order.

  4. If the list contains more levy sources than space permits, document the additional source(s) in AMS narrative.

  5. Do not add levy sources to ACS that we are prohibited from issuing. See IRM 5.19.4.3.7.

  6. See IRM 5.19.6.17.4.1, Adding Levy Sources to ACS , for procedures on adding levy sources to ACS.

Adding Levy Sources to ACS
  1. When adding levy sources to ACS based on the Excess Levy Sources Listings, the following procedures must be followed to ensure that the type of levy source income is properly identified.

  2. The following fields must be entered when adding levy sources to ACS:

    1. The type of income. See (3) below to determine the type of income to enter.

    2. Who the income is for: Primary, Secondary or Joint.

    3. If the income is for secondary taxpayer, the secondary SSN must be entered.

    4. Levy source EIN if present on listing.

    5. Enter: "INFO" if "INFO-ONLY-IND" value is a "1" , otherwise leave field blank.

    6. 1st name line.

    7. 2nd name line, if present on listing.

    8. Street address.

    9. City, State and Zip.

  3. Use the following table to determine the type of income to enter based on the values contained in the SRCE TYPE code and the DOC TYPE CD.

    Enter TYPE of income as: When "SRCE TYPE CODE" is: or "DOC TYPE CD" is:
    Wages 006  
    00W  
    Interest 000 A
      6
    002  
    Other   X
    NONEMP 021  
    1099R 128  
    R  
    Fishing 023  
    Rent and Royalty 024/025  
    IRA,

    Note:

    Must be input as "INFO"

    088  
    Currency Transaction (CTR) 066/087  
    1041 Passive Income 144  
    1041 Business Income 050  
    Medical Payments 022  
    1099K 300  

Undeliverable Mail

  1. Undelivered (UD) mail is any letter, notice or other correspondence that was sent to a taxpayer or third party and subsequently returned to us with an indication that the address to which the mail was sent is no longer valid.

  2. Employees processing undeliverable mail, should determine if the undelivered notice or letter was addressed to a secondary taxpayer. Address research should be conducted for the appropriate taxpayer and history documentation should reflect such.

  3. A visual sort of the UD mail must be performed to separate UD notices that have specialized processing (e.g., UD NFTL Notices, UD Levy Releases, UD ACS TDI Notices (W & I ), etc.).

  4. UD mail processing is generally done at the clerical level.

  5. UD mail that contains a USPS Yellow label must be processed using procedures in IRM 5.19.16.1.2(2).

  6. The returned mail must be processed through one or more of the following systems.

    1. ADR (Address Research System for letters with a 12-digit bar code). The ADR system initiates automated research for new addresses. ACS notes are input by the Inventory Delivery System (IDS).

    2. AMS narratives are input for non-scanned UD mail if the case is no longer on ACS.

    3. ACSWeb history is input for UD levy, releases, and LP/LT Letters.

      Note:

      Certified, Return Receipt Mail delivery status updates IDRS with the appropriate TC 971 code (AC 066; 067; 068; 069) via a system implemented July 2007 by CPS on LT11s.

  7. All UD Correspondex Letters initiated by ACS and ACSS will be processed by ACSS employees. Use OFP 810-64900 to report hours and volume.

    1. Research IDRS to check if the address was recently changed or is in a pending status. If the address was updated or pending, re-issue the correspondex letter and document AMS.

    2. If no new address or pending change, destroy correspondex letter and update AMS comments

    3. If there is a USPS forwarding address label, follow the USPS yellow label directions in IRM 5.19.16.1.2(2), Undelivered (UD) Mail Procedures, 3rd If/And/Then section - USPS Yellow Label Indicates forwarding address.

    4. If the account is on ACS, check and adjust the follow-up date as appropriate. Enter "OAUD,xx,####UDA" when the Letter # has more than 2 characters. (e.g., "OAUD,45,2272MAI" )

      Note:

      #### = Letter # and UDA = 1st three characters of the UD Address.

Non-Scanned UD Mail (ACS Input)

  1. Manually process ACS Undelivered mail that cannot be processed through the ADR system.

  2. When returned mail indicates "Deceased" , reassign the case to R4 inventory for processing. Document AMS history.

    Note:

    If the returned mail is a 2268C letter, ACSS will batch and work the correspondence using guidance in IRM 5.19.1.5.3, Deceased Taxpayers.

  3. When the UD mail is a Notice of Levy or LP letter to the levy source, forward to the NLS Coordinator.

  4. For all other UD mail, process as follows:

    If Then
    UD mail is a Form 8519 (taxpayer's copy of Levy)
    • Input pertinent information to AMS history.

    • Maintain the follow-up date. Enter "OAUD,XX,8519UDA" .

    UD mail is an "LP" letter, other than those to the levy source.
    • Input pertinent information to AMS history.

    • Change the follow-up date to the following day using "OAUD,01,LP##UDA" .

    All other non-scanned mail to the taxpayer (includes ALP CP9X UD Mail).
    • Input pertinent information to AMS history.

    • Change the follow-up date to the following day by entering "OAUD,01,LT##UDA" or "OAUD,01,####UDA" when the letter # has more than 2 characters

    .

    Note:

    UDA = 1st three characters of the UD address.

  5. If all necessary information is in AMS history, comments are not required. Any useful information including:

    1. Potential new addresses.

    2. Potential new phone numbers.

    3. The levy source is out of business.

  6. UD mail entered on the ACS system is generally worked under OFP code 790-64901. UD mail researched and processed by a TE is generally worked under OFP 810-64900.

Undeliverable Levy Releases

  1. There may be an occasion when a levy release is undeliverable. All undeliverable levy releases, LP68’s and/or Form 668D’s require immediate account research to prevent potential harm to the taxpayer and/or over collection on a full paid account.

  2. Forward undeliverable Levy Releases, Form 668D, Release of Levy / Release of Property from Levy prepared by the field, to the Revenue Officer (RO) using the return address information on the levy release.

  3. All undeliverable levy releases must be worked within 24 hours of receipt in ACS Support.

  4. A review of the account is needed to determine whether:

    • Payments are still being received.

    • If partial levy release, do the payments posting on account after the partial release was issued reflect the partial release?

    • subsequent contact was made by the taxpayer for fax levy release

  5. Follow the instructions in the table below to determine if a new levy release must be sent.

    Note:

    If the prior levy release was a partial release but levy payments continue to arrive, a new partial release may be required.

    If account review reveals Then
    • Payments continue to be received

    • No subsequent contact with taxpayer and

    • No indication that a subsequent release of levy was faxed or mailed within the last four weeks.

    Research the NLS database for levy source fax or phone number.
    • If a fax number is found, fax (partial, if applicable) levy release immediately.

    • If a fax number is not found but a phone number is, call the levy source to secure a fax number and fax (partial, if applicable) the release immediately.

    • If neither a fax nor a phone number is found, call the taxpayer to secure a fax number for the levy source.

    • If taxpayer provides the fax number, fax (partial, if applicable) the levy release immediately.

    • If the taxpayer needs to call back to provide a fax number, update the AMS history to indicate which levy source requires a fax levy release and that the taxpayer will call back with the fax number.

    • If the taxpayer is not available by phone, mail the levy release, (partial, if applicable) to the taxpayer and document AMS history that levy release was mailed to taxpayer.

    • Proceed to IRM 5.19.6.18.3(6), Undeliverable Levy Procedures for All ACS Support Employees.

    • Payments continue to be received

    • Levy release was issued within the past 4 weeks to a different address for the levy source or was faxed to levy source.

    • Update AMS history to reflect levy release dated mm-dd-yyyy was received undeliverable. (mm-dd-yyyy = actual date of issuance of levy release.)

    • Proceed to IRM 5.19.6.18.3(6).

    • No additional payments have been received

    • Update AMS history to reflect that the levy release dated mm-dd-yyyy was returned.

    • Proceed to IRM 5.19.6.18.3(6).

  6. After ensuring the levy has been released, employees need to take the following steps to perfect the levy source address for the ud mail.

    Step Check: If Then:
    #1 Address of UD levy release with address on ACS Levy source is no longer on ACS Forward the UD Levy release to NLS Coordinator for research on the NLSD.
    #1 Addresses are different Destroy the UD levy release.
    Addresses are the same Proceed to step 2.
    #2 NLS Match indicator NLS = Y Forward the UD Levy release to NLS Coordinator for research on the NLSD.
    NLS = N Destroy the UD levy release.

Undeliverable Levy Procedures for All ACS Support Employees

  1. Alpha sort all undeliverable levies.

    • Contact HQ Levy Analyst when 25 or more undelivered levies exist for one source, if not previously elevated or addressed.

    • Research all undelivered levies for big known employers

      Example:

      Federal Agencies, UPS, KFC, Wal-Mart Etc.

  2. Access account on ACS:

    • When the account is on archive only, no further action is necessary on UD levy.

    • Prior to re-issuing any levy, review ACS Comments, AMS history, account alerts, and history codes for anything that may affect the levy decision.

    • If levy will not be issued because of pending case actions, update the levy source address on ACSWeb and remove the date in the ISSUED box on ACSWeb detail levy screen.

    • When ACS research shows that the levy source was previously deleted, do not re-add the levy source for re-issuance.

    • When the account is still on ACS take the following actions:

    Step Check: If Then:
    #1 Address UD levy with address on ACS Addresses are different Forward to NLS Coordinator for research on NLSD.
    Addresses are the same Proceed to step 2.
    #2 NLS Match indicator NLS = Y Forward UD Levy to NLS Coordinator for research on NLS.
    NLS = N Proceed to step 3.
    #3 PRD Earned (See IRM 5.19.4.3.5(12), Levy Sources and ACS Display , for more information)) Current year and NLS = N
    • Research for better address for levy source and if found reissue levy.

    • If new address not found delete levy source.

    • Update AMS comments.

    Current year and NLS = Y
    • Reissue levy.

    • Update AMS comments.

    Not current year. This means the PRD Earned field is more than 2 years prior to current year. Proceed to step 4.
    #4 Check CCIRPTR for current year IRP information. Is UD levy listed as a source of income for the current year? Yes
    • Research for better address. If found, reissue levy

    • Input comments to indicate reissuing levy to new address.

        No
    • Delete the levy source from ACSWeb.

    • Update AMS comments: UD levy, no new address found.

    • Depending on what caused multiple undelivered levies, i.e.: 25 or more, corrective actions may vary. HQ will assist in corrective actions required.

    • Do not re-add levy sources if they have been deleted.

    Example:

    Multiple undelivered levies was caused by incorrect entry on NLS, sources on ACS all have NLS match ind = Y. NLS entry is subsequently updated, undelivered levies should be reissued.

  3. Use OFP 810-64142 to report time and volume when processing UD Levies, except those worked by the NLS Coordinator.

Procedures for Validating and Updating Levy Source Information
  1. This section provides procedures for validating levy source address information and adding or editing information on the National Levy Source Database (NLSD). Updates can be the result of undelivered (UD) levies, levy releases, Form 4442, Inquiry Referral, and LP letters issued to levy sources.

  2. Prior to adding new information to NLS, the NLS Coordinator will:

    1. Attempt to contact the levy source to secure an address for levy processing and the levy source EIN. If the levy source is a bank, attempt to secure the bank routing number also.

    2. Research IDRS to locate a new address for levy source and to verify the EIN for the levy source.

  3. When phone contact is unsuccessful and a new address is provided by the U.S. Postal Service (USPS), accept that address as a valid address and input to NLS database.

  4. If an address is not provided by USPS, research for a valid new address and locate an EIN for the levy source. Once an address/EIN is located, edit or input the EIN, name line and address in the NLS database.

  5. In the NOTES box on NLS, input the date, site and initials of the person who updated the levy source on NLS.

    Note:

    Do not place notes in any other field on the NLS database other than the NOTES box.

  6. Sub Key Programming:

    • #00 is used to ensure that text clarifying how or where to apply a levy shows at the top of the listing, just under the principal name line, in the new National Levy Source Look-UP (NLS-Lookup). Use #01 the #02 up ro #99 to show clarifying text. The #00 must be three spaces with a space before the beginning of the text as in #01 States of MD, OH, SD etc. The #01 will not show up on the National Levy Source Look-up.

      Example:

      Bank of America sends levies to three different places dependent upon in which state the taxpayer resides. Each of the three sites has #00 text to indicate which states belong to that particular Bank of America address.

    • "-" is used in front of an entry in the sub key area. This entry will ensure that the item does NOT appear in the National Levy Source Look-up (NLS-Lookup).

  7. Update the levy source on ACS and re-issue the levy.

  8. If a new address or EIN cannot be located for the UD levy, forward the levy to HQ Analyst.

  9. Report time and volumes using OFP 810-64304.

Undeliverable Notice of Federal Tax Lien (NFTL)

  1. Employees receiving notices returned as undelivered must research the notice within fourteen (14) calendar days from the date received in ACSS to determine if a more current address is available for re-issuance of the notice.

  2. Research the UD NFTLs through IDRS, ALS, and AMS:

    • Due to redaction of the TIN on the NFTL notice, use IDRS or ALS to locate the correct taxpayer TIN.

    • After locating the taxpayer's TIN, verify the address on IDRS.

    • If the address on IDRS is different than the address on the CDP notice, compare the cycle of the address on IDRS with the cycle date the NFTL was requested.

    • Consider the CDP notice correct if the address on IDRS was the last known address of the taxpayer at the time the NFTL was requested.

    • Review AMS history to see if a new address was provided or updated the same day the NFTL was requested.

    Note:

    Requested is defined as the date of the FM10 (ACS action history) or date of AMS history indicating the NFTL was requested (NFTL was not filed via ACS action history FM10).

  3. UD NFTLs with a foreign address do not have a certified mail number to input into the NOTADD screen. International taxpayers certified mail is issued using a registered mail number. Therefore, additional research on ALS is necessary to identify the correct number to access the account through NOTADD. Use the following steps, as identified in the ALS User Guide, Chapter 7, RRA Notices, under the "Processing Returned Mail (Undeliverable/Unclaimed/Refused)" Section, to locate the correct number in order to process this type of UD NFTL:

    1. Log on to Research Screen on ALS

    2. Type in "S" for SLID

    3. Type in the SLID of the UD NFTL

    4. Notate the TIN on UD NFTL

    5. Type "4 " for Court

    6. Type "7" for Notice

    7. Notate the Certified mail Listing number from the screen. This number is needed to research and process the UD NFTL.

  4. If the UD NFTL was returned with an indication the taxpayer is deceased, originally sent to a fiduciary, or was issued with deceased in the name line, check IDRS for an updated address. If the address on IDRS is the same as the returned notice, no further research is necessary. If the address was not sent to the last known address, follow (5) below.

  5. If it is determined the notice was not sent to the last known address as defined above, the employee must issue a new notice to the correct address using NOTADD. The ALS User Guide provides instructions for issuing a new notice using NOTADD in Chapter 7, RRA Notices. The ALS User Guide can be located at http://mysbse.web.irs.gov/Collection/collsystems/als/userguide/default.aspx

    Note:

    If a different address is found on IDRS but was effective after the NFTL was requested, do not issue a new notice.

  6. If the address is the address of record at the time the lien filing was prepared, but the address was updated on IDRS within two cycles after that time, a courtesy copy of the notice may be, but is not required to be sent to the taxpayer’s current address.

  7. If the reissued CDP notice is returned, there is no need for additional research because the reissued notice was mailed to the last known address at the time, based on prior research.

  8. For all undelivered NFTLs, a TC 971 Action Code 253 must be input using the ALS NOTADD screen. The ALS User Guide provides instructions to update the delivery status (Undelivered - systemic generations of TC 971 AC 253). Refer to Chapter 7, page 11, for step-by-step guidance.

    Note:

    The TC 971 Action Code 253 updates on IDRS weekly

    REMINDER: ACSS is only required to process Undeliverable NFTLs and does not work the Refused and Unclaimed NFTL Notices.

  9. If the account is still open on ACS, input the following ACS action histories upon completion of research:

    1. "OAUD,nn,RECmmdd" and

      Note:

      mmdd = the ACS Support Received Date of the UD NFTL. For example, UD NFTL was received in ACS Support on June 28, 2013. ACS Action history code would be "OAUD,01,REC0628"

    2. "OADT,nn,UD3172R" when notice is reissued or"OADT,nn,UD3172" when notice is not reissued.

    Note:

    nn = "00" if the case follow-up date is expired or the number of days until the current follow-up date if not expired.

    Note:

    If the case is in "F" function and the follow-up date is beyond your ability to input, use "OAUD,01,RECmmdd" and "OADT,01,UD3172" to let the system re-analyze the account.

  10. If the account is no longer on ACS, document AMS histories using the AMS Issue - LIEN, with the necessary information regarding the UD NFTL including that the UD NFTL mail was received, the ACSS received date from the batch sheet, type(s) of research completed, and whether or not the notice was reissued.

  11. Destroy any other type of returned CDP notices. Example: refused or unclaimed. Do not take a point of count for these types of notices.

    Note:

    DO NOT Destroy CDP notices that have multiple notes/stamps on the envelope which indicates the notices were both undelievered and refused or unclaimed. In these instances, the returned CDP notice will be considered undelievered and worked based on the procedures outlined above.

  12. Charge time spent on this program to OFP 790-64903. Take a point of count for each undeliverable NFTL notice processed.

FERDI - F9 Inventory Processing

  1. The F function has been designated for FERDI cases in ACS.

  2. The F9 inventory is used to house FERDI correspondence (paper) cases.

    Reminder:

    Do not remove FERDI cases from F inventory unless specifically directed.

  3. FERDI cases can be identified by the literal "FE" on the ACS Entity screen and/or "Federal Employee" in the Alerts section of the AMS Summary screen. See IRM 5.19.18.2 for additional ways to identify FERDI cases.

  4. FERDI correspondence is worked following the same guidance as non-FERDI correspondence. When processing is completed, reassign the case with the appropriate follow-up time frame as follows:

    1. If FPLP payments are being received, move to F2.

    2. If taxpayer is subject to FPLP, but FPLP payments have not started, move to F1.

    3. If taxpayer is not subject to FPLP move to F5.

    Note:

    Only two ACSS inventories will remain in S inventory upon receipt: CDP Requests will continue to be assigned to S8 inventory and TAS OARs/hold requests will continue to be assigned to S7. After completing the necessary actions on these two specific case types, the accounts must be assigned to F1 inventory.

    Note:

    Pending Installment Agreements meeting the criteria in IRM 5.19.1.6.4.5.7 will be assigned to R5 inventory.

  5. Follow procedures in IRM 5.19.6.20.5, Processing S4 Inventory, when processing expired follow-ups. Substitute F9 for any reference to "S4" .

  6. FERDI Large Dollar (LG$) cases are worked by the FERDI ACS Site (Jacksonville ACS). Related FERDI LG$ correspondence is worked by ACS Support. After processing FERDI LG$ correspondence, reassign all cases "TOF7,00,CRBUR" for credit bureau research.

S - Inventories

  1. Function inventories may be processed either by next case processing or from a list.

    1. In next case processing the ACS system brings each case up in priority sequence with an expired follow-up date.

    2. List(s) obtained through QMF identifies accounts which may not have expired follow-up dates.

      Note:

      Either process is necessary to ensure proper follow-up actions are taken. This includes moving cases to the appropriate function.

    Caution:

    Review cases carefully when working from a list to avoid taking premature actions.

Processing the S0 Inventory

  1. S0 inventory contains ACS accounts awaiting managerial approval. This inventory must be functioned out weekly.

Processing the S1 Inventory

  1. S1 inventory contains new ACS accounts which appear on the ACS Action Lists. As cases are loaded to ACS some are automatically categorized and placed on an Action List for further processing in the S1 inventory.

  2. S1 inventory is considered overage two weeks after issuance.

  3. Process entries on the list per IRM 5.19.6.10, Action List Balance Due Procedures, (TDA accounts) or IRM 5.19.6.10.1, Action List Return Delinquency Procedures, (TDI accounts).

  4. Charge time to OFP Code 810–64700.

  5. Do not take an item count for working the S1 inventory.

S2 Inventory

  1. Automated Telephone Number Research (TNR). Systemic process only. Case are systemically moved to this function when telephone number research is required.

Processing the S3 Inventory

  1. Cases are assigned to the S3 inventory when an MFT31 mirror assessment needs to be established for divorced or separated taxpayers by the Philadelphia (PSC) Compliance Service Collection Operation (CSCO) function.

  2. Work the S3 inventory on a weekly basis to identify expired follow-up dates.

  3. Review IDRS and AMS history for a control base established by PSC CSCO. The IDRS control base is normally established within 14 days of receipt of the mirroring package by PSC CSCO. If the account is still being worked by the PSC CSCO function extend the follow-up date an additional 30 days, OADT,30,MFT31. If the extended follow-up date has expired contact the PSC CSCO function to determine the status of the case. Extend the follow-up date if necessary and update AMS history.

  4. If an IDRS control base is not established, review the documentation on AMS history and resubmit the mirroring package (Form 4442, Inquiry Referral, and Form 3210, Document Transmittal) using the history to recreate the referral.

Processing S4 Inventory

  1. Cases in S4 are correspondence cases awaiting an answer or research results. Cases are initially assigned to S4 for 30 days when cases are controlled on AMS to an ACSS employee. The controlling employee is responsible for extending the follow-up date when needed if a case cannot be resolved within 30 days. The follow-up date should be extended before it expires. The controlling employee must close the IDRS control base when the correspondence has been resolved.

  2. The S4 inventory is worked daily to identify cases with expired follow-up dates.

  3. If the account is no longer in S4, take no further action.

  4. If the control base is open extend the follow-up date an additional 30 days, OADT,30,FLWUP. If the extended follow-up date has expired contact the employee with the open control base via secure E-mail and extend the follow-up 7 days and update AMS history.

  5. If the control base is closed, continue processing the case. Review AMS narrative, ACS Web and IDRS history items. Take the next appropriate action.

  6. Charge time spent to OFP code 810-64500.

S5 Case Processing

  1. Cases appearing in the S5 inventory are cases requesting an installment agreement but ACS Support is waiting for taxpayer confirmation of financial or other information. The S5 inventory is worked on a daily basis to identify cases with expired follow-up dates.

  2. Take the following actions if the follow-up date has expired and IDRS/AMS research indicates there is an open control to an ACSS employee:

    1. Review IDRS/AMS for an open control to an ACSS employee.

    2. Contact the employee via secure E-mail and annotate that the account is in S5 with an expired follow-up date.

    3. Input OADT,07,S5FLWUP and update AMS history.

    4. If the account indicates that additional follow-up time has been given and there has been no action taken by the controlling employee, forward a secure E-mail to the employee and employee's manager (copy your manager). Extend the follow-up for an additional 7 days.

  3. Take the following actions if the follow-up date has expired and IDRS/AMS research indicates there is not an open control to an ACSS employee:

    1. Establish an installment agreement based on AMS history when the Taxpayer has made the initial voluntary payment by the promised date reducing the aggregate assessed balance due to an amount fitting streamlined or guaranteed IA criteria. If the payment has not posted by the promised date, forward the case to Independent Review per guidance in IRM 5.19.1.6.4.9, IA Rejection Criteria.

    2. If the taxpayer failed to respond to our request for additional information for an installment agreement, follow IRM 5.19.1.6.4.9.

      Note:

      Retain the hard copy correspondence to forward, if necessary, to Independent Review.

    3. If the case is a rejected installment agreement and the 60-day suspension has expired without evidence of appeal, resume regular collection action.

    4. If the case is a reversed TC 971 AC 043, take the next appropriate case action on ACS.

    5. If the only information you have is a TC 971 AC 043 on IDRS indicating a pending installment agreement and 14 or more cycles have transpired since the TC 971 AC 043 follow IRM 5.19.1.5.4.7.1, Requests Not Meeting Pending IA Criteria.

    6. If it cannot be determined why the case is in the S5 inventory, take the next appropriate case action on ACS.

  4. Document AMS with all actions taken when working this expired inventory.

  5. Charge time spent to OFP code 810-64171.

Processing S7 Inventory — Taxpayer Advocate Cases

  1. When a Form 12412, Operations Assistance Request (OAR), is received in the ACS Support (ACSS) function, assign the case to S7 within 24 - 48 hours of receipt. Assign to S7 using: "TOS7,30,OAR" . The follow-up date may be extended based on the facts and circumstances of the case (for example, the action necessary to resolve the OAR will exceed 30 days).

    Note:

    If an expedite OAR is received in ACSS, determine if it needs immediate assignment to S7 based on the case advocate's request.

  2. All OARs received in ACSS should be logged into the TAMIS portal and acknowledged within the time frames outlined in the Taxpayer Advocate Service (TAS) Service Level Agreement.

  3. Refer to the applicable IRMs listed in IRM 5.19.6.4, ACS Support Research, IRM 13, Taxpayer Advocate Service, and the SB/SE or W&I TAS Service Level Agreement, to process OARs received in ACSS. If there are instances in which the TAS OAR request does not meet IRM guidelines, discuss your determination with the Taxpayer Advocate in order to come to an agreed upon resolution, document AMS with the conversation and agreed upon resolution. If no resolution, discuss the next action to be taken with your lead, manager, and/or TAS Liaison.

    For example, TAS OAR indicates the TP wants an installment agreement of $600 per month based on TAS review of the financial. However, our financial analysis indicates the taxpayer should pay $800 per month due to disallowance of certain expenses. At this point the OAR should be discussed with the Taxpayer Advocate. Upon negotiation, IRS agrees to $600 per month because the IRS interest (CSED protected) is covered. Or, upon negotiation, IRS may agree to set the installment agreement at a different amount (e.g., $700.00).

  4. Upon closing the OAR, the ACSS employee will complete Section VI of Form 12412 and return it to the TAS employee assigned to the case. At this point, the OAR (file copy) should be released for Quality Review (this does not delay the process for returning OARs to TAS). The OAR must be returned to TAS within 3 workdays from the date all actions have been completed and transactions input by ACSS. The case should remain in S7 for the duration of the original hold placed on the account unless notified by TAS that the case is closed.

  5. Once advised by TAS that the case is closed, move the account into the next appropriate function for ACS processing.

S7 - Next Case Processing
  1. Cases appearing in the S7 inventory are Taxpayer Advocate cases being worked by ACSS. Work the S7 next case processing inventory daily to identify cases with expired follow-up dates.

  2. Review AMS/ACS history. If the account is still being worked in ACS, make a print of the entity screen and route it to the appropriate employee. Annotate on the screen print that the account is in S7 with an expired follow-up date input: OADT,07,S7FLWUP.

    Note:

    The employee assigned to the case should extend the follow-up date as necessary until the OAR is closed.

  3. When performing next case processing, if the S7 follow-up has expired, and the case is closed in ACS, check IDRS for a control base established by the TAS office. If control base is open, contact the TAS office and request status. Check the TAS Campus Directory. If an additional follow-up is requested, extend the follow-up date and secure the TAS employees' name and telephone number. Input history code OADT,XX,TASHLD indicating the number of days requested to extend the hold. Document the ACS case with pertinent information obtained from the TAS employee.

    Note:

    If the follow-up date has expired with no response from TAS, add another 14 days and make another attempt to contact TAS to request status of the case. Leave the case in S7. If there is no response from TAS after the 14 days have expired, elevate the issue to the ACS Support TAS Manager who will contact the TAS caseworkers' manager for resolution, OADT the case for an additional 7 days. If no response is received from the TAS caseworkers' manager after the 7 days have expired, move the account out of S7 into the next appropriate function for ACS processing. Ensure all actions taken on the account are documented clearly on AMS.

  4. If the control base established by TAS is closed, move the account into the next appropriate function for ACS processing.

  5. Charge time spent on this program to 810-64012.

S8 Inventory

  1. S8 has Collection Due Process (CDP) inventory. See IRM 5.19.8.4.9.1, CDP/EH Case Follow up for guidance on processing S8 follow-up inventory.

Processing S9 Inventory

  1. This section provides information and guidance for working the S9 inventory.

  2. The S9 inventory houses cases being transferred, (or ‘reassigned’) out of ACS. Most accounts will transfer out of ACS within 10 days. Cases that reside in the S9 inventory after the follow up date expires have failed to transfer out of ACS.

  3. Cases are systemically reassigned TOS9 with a 28 day follow up when an action history "TFQU" or "TFRO" is input with an assignment number.

  4. Requests for transfers input on ACSWeb, via TFQU or TFRO, will generate a transaction request that is passed to IDRS by way of SIA. Manual transfers are processed daily, while systemic transfers are processed over the weekend.

  5. Sometimes accounts will fail to transfer due to a particular condition present on IDRS or due to an incorrect or invalid TDA/TDI assignment number.

  6. Due to changing programs and unforeseen systemic problems, the information in this section may not address every situation where an account has failed to transfer. However by applying the information contained in this section, along with researching the references provided, employees should be able to determine the next appropriate case action for resolving accounts that remain in S9 after the follow up date expires.

  7. The specific references to certain IRM’s and or systems contained in this section do not negate the employees responsibility to research other IRM’s, as provided in IRM 5.19.6.4, ACS Support Research, when attempting to resolve and take next case actions on accounts in S9.

  8. Charge time spent on this program to OFP 810-64500.

Researching ACSWeb Action History
  1. If after following the instructions in this section, the employee has not identified and corrected the reason for the account failing to transfer, employees must proceed to IRM 5.19.6.20.9.2, IDRS Conditions Preventing Transfers.

  2. Employees must review both the ACSWeb action histories and the AMS histories to determine:

    • The type of transfer action requested and intended TDA/TDI assignment for the account,

    • whether the TDA/TDI assignment number entered is valid for the action history entered, or

    • whether the TDA/TDI assignment number entered is in the correct format.

      Note:

      All TDA/TDI assignment numbers are 8 digits in length and identify the area office, territory office, branch, group and employee or special action code to which TDAs and TDIs are assigned. Additional information for TDA/TDI assignment numbers can be found in Document 6209 or IRM 2.4.27, Command Code ASGNI/ASGNB (formerly TSIGN).

  3. The proper input format for transfer cases from ACS is AOTOnnnn, where nnnn represents the branch, group and employee number. The following chart provides information on the appropriate input for transferring cases out of ACS. The following list represents the most common transfer transactions input through ACSWeb:

    For Account transfers to: The 5th, 6th, 7th and 8th position of assignment number would be: The Action History input must be:
    The queue

    Note:

    Transfers to the queue must be input with TFQU.

    7000 TFQU,AO007000
    ASFR* IMF only 8000 TFRO,AO008000
    6020B* BMF only 8600 TFRO,AO008600
    Revenue Officer – assignment number not known 6501 – no documents to be associated TFRO,AO006501
    6566 – documents to be associated TFRO,AO006566
    A specific revenue officer As directed TFRO,AOnnnnnn

    Note:

    The 1st, 2nd, 3rd and 4th positions represent the Area Office, "AO" and Territory Office, "TO" .

    Note:

    When digits 5 – 8 (BGEE) = 6550 – 6565 or 6567– 6599 then the AO must = 11 -15.

    Note:

    When digits 5 – 8 (BGEE) = 6501 - 6549 or 6566, then the AO must = 21 - 27, 35.

  4. For all failed transfer requests where the assignment number was entered incorrectly, employees must re-input the correct action history/assignment number either on ACSWeb or directly on IDRS via CC ASGNI/B.

    • The following transfer requests can be input on ACSWeb: TFQU,AOTO7000, and TFRO,AOTOnnnn where the TFRO request is to 6501-6549 or 6566 (generic field - RO), 8000, 8001 and 8600.

    • All other TFRO action histories must be input on IDRS via CC ASGNI/B.

  5. There may be times when the action history does not contain a TFRO or TFQU entry, yet the action history contains a systemically generated action history reassigning the account "TOS9, BAD TSIGN". When this occurs take the following actions:

    • If the ACS case assignment number is not AOTO0000 input an OADT,14.

    • If the ACS case assignment number is AOTO0000, then follow next case procedures. IRM 5.19.6.10 (TDA accounts) or IRM 5.19.6.10.1 (TDI accounts).

IDRS Conditions Preventing Transfers
  1. When it is determined that the transfer request was entered correctly on ACSWeb, employees must review IDRS to determine if there is an account condition that is preventing the account from transferring out of ACS.

  2. Most pending transactions inhibit transfers for field assignment. Enter History Code OADT,28,TCPN.

  3. If the case is a Delinquent Return case over six (6) years old, do not assign to the field. See IRM 5.19.2.6.4.6.3.21, IMF Little or No Tax Due, or IRM 5.19.22.4.3.1.1.1, BMF Little or No Tax Due , and 1.2.14.1.18, Policy Statement P-5-133, for guidance.

  4. If TC 914/916 is present on the module or TC 918 is present on the taxpayer entity and the ASGNI DOAO 6993 is present, process as follows

    1. TDA: Input STAUP 9100 on IDRS, enter the following history code on ACSWeb: OADT,40,MAHCTDA (manual copy). Also enter the following on the ACS Note field: TC914, ST91, TOSPF. Forward a print of the ACSWeb entity screen to Centralized Case Processing.

    2. TDI: input TC 596 with Closing Code 32 on IDRS using FRM49 to the earliest TDI. Enter the following history code on ACSWeb: OADT,40,MAHCTDI (manual copy). Also, enter the following on the ACS Notes field: TC 914, TC 596. Forward a print of the ACSWeb Entity screen to Centralized Case Processing.

  5. If TC 470 with no closing code is on the module, research IDRS for an open control base. Contact the employee to determine disposition of the case.

    1. If the employee indicates the action on the case will fully satisfy the account, input on IDRS TC 470 cc 90 using CC REQ77 for any adjustment or TC 470 cc 93 for a payment tracer. Document AMS narrative with the action you are taking which will result in the case dropping off of ACSWeb. Enter History Code: OADT,28,DROPOFF.

    2. If the action will not satisfy the account, enter the following into the ACS Notes field: MANUAL TDA TOR0. Enter the following History Code on ACSWeb: OADT,40,TC470PN Print all ACSWeb screens and forward them to the appropriate RO. Document AMS narrative with the action you are taking which will result in the case dropping off ACSWeb.

    3. If there is no open control base, reassign account to R1 for 60 days.

  6. If there is an unpostable on the module, enter the following History Code on ACSWeb: OADT,40,UNP.

  7. If freeze code conditions -A, -J, O-, -X or -V are present, enter the following History Code: OADT,28,FZPNTDA(freeze pending) for TDA or OADT,28,FZPNTDI for TDI.

  8. If there are no unpostable codes, freeze codes or pending transaction codes, input STAUP 2600 to each TDA module on IDRS. Enter the following History Code on ACSWeb: OADT,28,MANTDA.

  9. If the case is still on ACS after 28 days and none of the above conditions exist:

    1. Print all ACSWeb screens.

    2. Enter the following History Code on ACSWeb: OADT,40,MAHCTDA or OADT,40,MAHCTDI.

    3. Forward to the appropriate RO using the SERP Who/Where RO Look Up.

  10. If IDRS shows that Master File (MF) first CP notice was issued within five cycles, enter the following ACS History Code on ACSWeb: OADT,28,MF1STCP.

    1. If the notice was sent more than five cycles ago, check IDRS for any of the conditions listed above in 2(a) through 9(d) (e.g., a TC 470 with or without a closing code).

    2. If any of the conditions exist, input the condition on ACS Notes field. Proceed as in (9) above.

  11. If there is no data on IDRS or no ACS indicator on IDRS TXMOD, refer the case to your ACS manager for removal from ACSWeb

  12. Charge time spent on: TDA and TDI to OFP code 81n-6417x.

Victor "V" Inventory

  1. The V function has been designated for pending Identity Theft (IDT) cases in ACS.

  2. Function inventories may be processed either by next case processing or from a list.

    1. In next case processing the ACS system brings each case up in priority sequence with an expired follow-up date.

    2. List(s) obtained through QMF identifies accounts which may not have expired follow-up dates.

      Note:

      : Either process is necessary to ensure proper follow-up actions are taken. This includes moving cases to the appropriate function.

      Caution:

      Review cases carefully when working from a list to avoid taking premature actions.

      Caution:

      If a TC971 AC 522 is posted with the literal MIS>PPDSOPIP and no Form 14039 do not send to IDTVA process as normal through ACS.

Pending Claims

  1. The V1 inventory is for pending IDT claims without the necessary documentation substantiation.

  2. The inventory will also include cases reassigned by ACS and ACS Support employees when the taxpayer makes an IDT claim but has not submitted the necessary IDT documentation substantiation. The following documentation is required to substantiate identity theft:

    • Evidence of Identity Theft-a copy of a police report or completed Form 14039, Identity Theft Affidavit,(Spanish version-Form 14039-SP).

    • In addition, there may be additional documentation; however it is not required to refer the case to IDTVA. - Authentication of Identity - a copy of a valid U.S. federal or state government issued form of identification (Example: driver’s license, state identification card, social security card, passport)

    .

  3. See IRM 5.19.6.23.2, Expired V Inventory, for guidance on processing the expired follow-ups.

Expired V Inventory

  1. An Identity Theft Alert "IDTHF" is placed on ACS accounts where a TC971 with any of the following Action Codes (AC) are posted to the Entity

    • 501: Taxpayer Initiated the IDT Case Closure (Tax-Related)

    • 504: Taxpayer self-identified IDT- no tax administration impact.

    • 505: IRS Data Loss Incidents

    • 506: IRS identified IDT - Taxpayer not required to provide ID Theft documentation, unless requested, and the IDT issue is resolved

    • 522: Tax-Related IDT - Initial Claims/Suspicion and Supporting Documents.

    • 523: Misuse of Dependent SSN - Applies to IMF Accounts Only

    • 524: Locking SSNs (IMF only) - Taxpayer Deceased

    • 525: Applies systemically to a taxpayer’s account when an ITIN/SSN mismatch occurs

  2. The presence of the IDTHF Alert indicator does not mean that there is an active identity theft issue. The alert will remain on the account until the TC 971 AC 5XX is resolved.

    Note:

    If a TC 971 AC 522 is posted with the literal MISC>PPDSOPIP and no Form 14039 do not send to IDTVA process as normal through ACS.

  3. Follow the cart below to determine the next action:

    If... And... Then...
    If there is an open control to an IDT function   move the case TOO9,01,OPENCTRL
    There is an unreversed TC 971 AC 522 PNDCLM on the account There is no subsequent TC 971 AC 522 UNWORK, TC 971 AC 501 or AC 506 IRSID only for the same tax period AND the tax period of the TC 971 AC 522 has a balance due or TDI on ACS
    • Taxpayer has never been advised to submit the documentation/substantiation

    1. Advise the taxpayer to fax or mail the documentation to the appropriate IDTV-C see IRM 5.19.21.1.2.2(2)

    2. Give a 30 day deadline to submit the documentation, WOEA, and enter OADT,60,IDTADJ

    3. document AMS with all actions taken and directions given to the taxpayer including deadline date

    There is no subsequent TC 971 AC 522 UNWORK, TC 971 AC 501 or AC 506 IRSID only for the same tax period AND the tax period of the TC 971 AC 522 has a balance due or TDI on ACS
    • Taxpayer has been advised to submit the documentation/substantiation but there has been no response

    1. Reverse the TC 971 AC 522 by inputting TC 972 AC 522 NORPLY per IRM 25.23.2-11

    2. Proceed with normal processing. See IRM 5.19.5.6.9,Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).

    • The documentation and/or substantiation is on the CIS system and it appears the ID Theft issue has not been addressed

    • Move the case "TOO9,01,CISREF"

    There is an unreversed TC971 AC522 PNDCLM on the account
    • There is a subsequent TC971 AC506 other than IRSID

    • Move the case “"TO09,01,REVIEW" ”

    There is a subsequent TC971 AC501 OR AC 506 IRSID the IDT issue has been resolved The IDT issue has been resolved. See IRM 5.19.5.6.9 Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).
    There is an unreversed TC 971 AC 522 other than PNDCLM on the account
    • There is no subsequent TC 971 AC 501 or AC 506 for the same tax period AND the tax period of the TC 971 AC 522 has no balance due or TDI on ACS

    • Document AMS comments and move the case "TOO9,01,REVIEW"

    • There is a TC 971 AC 501 or AC 506 but it is not for the same tax period as the TC 971 AC 522. The tax periods are not the same, this indicates the tax period containing the TC 971 AC 522 has not yet been resolved

    • Document AMS comments and move the case "TOO9,01,REVIEW"

    • There is a TC 971 AC 051/506 IRSID only for the same tax period as the TC 971 AC 522 and the tax periods are the same, this indicates the IDT issue has been resolved.

    • . The IDT issue has been resolved. See IRM 5.19.5.6.9, Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).

    • There is a subsequent TC971 AC 506 other than IRSID for the same tax period as the TC971 AC522

    Document AMS comments move the case "TO09,01,REVIEW"
    There is a TC 522 UNWORK on the account There is no subsequent TC971 AC501 or AC506 for the same tax period Move the case TOO9,01,UNWORK
    There is a TC 971 AC 504 on the account
    • There are no other IDT indicators (TC 971 AC 522/PNDCLM/UNWORK/OTHR/MULTFL/INCOME/NOFR)

    • See IRM 5.19.5.6.9,Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).

    • The tax period of the TC 971 AC 522 other than PNDCLM has a balance due or TDI on ACS

    • Document AMS comments and move the case "TOO9,01,REVIEW"

    There is only a TC 971 AC 505 on the account
    • There is a F14039 or police report available

    • Move case "TOO9,01,BREACH"

    • There is no F14039 or police report

    • Proceed with normal processing. See IRM 5.19.5.6.9, Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated)

    There is only a TC 971 AC 506 on the account No subsequent IDT codes Proceed with normal processing. See 5.19.5.6.9 Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).
    There is only a TC 971 AC 524 on the account There is only a TC 971 AC 524 on the account
    • The date of death is on INOLE and no returns after the year of death are present

    • Move case "TOR4,01,971524"

    Note:

    If the case was previously in R4 inventory and a 2268C letter was issued, do not move to R4. See 5.19.1.4.3, Deceased Taxpayers for next case actions.

    • The date of death is on INOLE and there are returns present after the year of death

    • Move case "TOO9,01,REVIEW"

    There is a TC 971 AC 523 and/or AC 525 on the account   Proceed with normal processing. See IRM 5.19.5.6.9, Actions to Resume Compliance Monitoring (use S0 anytime C0 is indicated).
  4. Cases with an IDTHF Alert do not qualify for systemic levy. Review the account to determine what modules are covered by the IDT issue. If it has been resolved or reversed (TC 972 AC 522 or TC 971 AC 50X) and there is a balance due remaining see IRM 5.19.4.3.4 for making levy determinations on cases with an IDTHF alert.

LEVYPMT Transcripts and Open LEVY Control Bases

  1. This section provides information and guidance for working the Levy Payment (LEVYPYT) Transcripts and cases controlled to ACS Support by Submission Processing.

  2. The LEVYPYT transcript generates when a levy payment, TC 670 DPC-05, is applied to a module that is:

    • Full paid, (status 12) for more than 10 cycles or

    • Has no assessment, (TDI module).This can include Account Maintenance (AM18) transcript where a levy payment has posted to TDI module IRM 5.19.2.5.8.3.

  3. Submission Processing will open a control base to ACSS when applying levy payments to full paid accounts. This only occurs for those payments requiring manual research to properly apply the payment.

    1. The open control base cases are located on the CCA 4243 listings on Control-D.

      Site Report Number
      Cincinnati 5S
      Philadelphia K8
      Kansas City KV
      Fresno 95
      Atlanta 33

      Note:

      Kansas City and Fresno no longer process this work and all controls for W&I cases should be controlled to Atlanta.

    2. The control bases are opened using the category "LEVY" to one of the following IDRS teams:

      Site IDRS Team
      Cincinnati 0272000001
      Philadelphia 0566100001
      Kansas City 0976511111
      Fresno 1072211111
      Atlanta 0772200001
  4. It is imperative that the cases are worked within 5 business days from the date they are received in ACS Support. Release of levies must be issued promptly and full account research must be conducted on IDRS and Master File to resolve credit modules.

    Exception:

    Each year IDRS has "dead" cycles in which transcripts are not generated. To lessen the impact of receipts after the "dead" cycles is over, the levy payment transcripts and Levy Control cases are to be worked within 10 business days from the date they are received in ACSS. This exception is only valid during the months of January and February after the yearly IDRS "dead" cycles.

  5. IAT tools simplify processing by assisting the user with IDRS research and input. The tools also reduce the chance of errors and improve productivity. When an action must be taken and an IAT tool is available, ACSS employees with access to IAT tools are required to complete the action using the IAT tool. See IRM 5.19.1.2.8, Mandated IAT Tools, for a list of mandatory IAT tools. Document the tool used and the results in AMS comments.

    Note:

    If an IAT tool is not functioning properly or it is determined not to be appropriate for a specific situation, the case should be worked using IDRS. For more information on each tool as well as job aid for each tool, see http://iat.web.irs.gov/

    .

  6. Charge time spent working LEVYPYMT Transcripts under OFP 810-64610.

  7. Charge time spent working the CCA 4243 LEVY control bases under OFP 810-64620.

Researching LEVYPMT Transcripts and Open LEVY Control Bases

  1. These cases require one or more of the following case actions:

    • Complete IDRS and Master File research.

    • Levy Release determination. For additional guidance, see IRM 5.19.4.4.10.

      Note:

      When releasing levies, Form 668-D on AMS must be used.

    • Contact with taxpayer and/or levy source.

    • Research National Levy Source Database (NLSD) for levy source fax number.

    • Credit resolution on all modules, regardless of the Designated Payment Code (DPC) or credit type.

  2. When comments indicate that a levy release was issued and payments continue to be received more than 8 weeks later, take the following actions:

    • Make one attempt to call the levy source. Document the results of the contact in the AMS history.

    • Obtain a fax number on all contacts.

    • Research for a better address for levy source.

    • Reissue the release to the levy source immediately, using Form 668-D on AMS. Fax the release when a fax number is available.

  3. Research IDRS and Master File to locate the last payment received. Use CC IMFOLP to locate where the payment was applied. (IMFOLP provides the payment DLN, payment DPC code and the tax module where the payment posted.)

    Reminder:

    Accounts receiving levy payments may not show activity on IDRS.

  4. Utilize Remittance Transaction Research (RTR) to determine if the payment is from the taxpayer or third party. If research indicates the payment received is a levy payment, research ACS, NLSD, or IDRS to determine the address and/or fax number to send a levy release Form 668-D.

  5. When levy payments are posting and subsequently refunding to the taxpayer, a Release of Levy must be issued immediately using Form 668-D on AMS. When a fax number is available, fax the release.

  6. If the payment is a designated payment code (DPC) 04, 05 or 99 and you determine it is not a true levy payment, change the DPC to "00" (zero, zero).

    Note:

    The DPC can be changed on the adjustment screen (ADD24, ADD34). If the credit is to be left on the account, a credit transfer must still be made to change the DPC. This can be done by transferring the credit back to the same account module and at the same time changing the DPC code to "00" .

    Note:

    After correcting the DPC Code to "00" and if the account is paid in full, send a 549C Letter to the taxpayer. Form 668-D is not appropriate in this situation.

  7. When research shows the credit was misapplied, follow the procedures in IRM 5.19.2.6.7, Credit Balance Overview . If correspondence with the taxpayer is needed to resolve the credits, open a control base.

    Note:

    When an erroneous refund situation is identified, employees must follow the procedures in IRM 21.4.5.5.5, Overview of Category D Erroneous Refunds, and IRM 21.4.5.6.1, Account Actions for Category D Erroneous Refunds.

  8. When research shows an overpayment on an account should be applied to another account or liability and a systemic offset will not happen, request the input of TC 130. For additional guidance, see IRM 5.19.10.3.2, Request Input of TC 130.

  9. Resolve any account conditions or freezes that would prevent the levy payment credits from refunding to the taxpayer, if the payments were received within the last 9 months. See IRC 6402(a), (c)-(e). If a Release of Levy is warranted, issue immediately following the guidance above.

    Note:

    No action is required for accounts containing an S- freeze (Undelivered Refund Check). Accounts containing an "S-" Freeze are worked in Accounts Management.

  10. For levy payment(s) posted to modules with no assessment and there are no other outstanding liabilities; if the payment was received within the last 9 months, move the payments back to the latest full paid period and force to post so a refund including interest will generate to the taxpayer. When inputting the credit transfer include TC 570 as a secondary transaction and input a TC 571 with a posting delay of 2 cycles immediately after to override the unpostable condition and allow the refund to issue.

  11. Send Correspondex Letter 112C to the taxpayer for disposition of credit or a claim for refund of any levy payments received after the nine month period but within 3 years from the due date of the return (23c date) or two years from the date of payment. Open a control base and suspense for a response.

    Reminder:

    If a telephone number is available, attempt to call the taxpayer before sending a letter.

    Note:

    When talking with the taxpayer, DO NOT ask if the credit can be applied to the SFP (MFT35) balance due. The credit can only be applied to the SRP balance if the taxpayer states the payment is to be applied to that balance.

    Note:

    When the refund is barred by IRC 6511(a) (the later of 3 years from the due date of the return (23c date) or 2 years from the date of payment), do not correspond with the taxpayer and follow IRM 3.14.1.6.8.1.2 instructions to transfer credits to Excess Collections.

    Note:

    Any payments with a DPC 99 that are levy payments should be treated in the same manner.

  12. Process the responses to 112C as follows:

    1. If the taxpayer requests that this payment be applied to another open module or account, apply it per taxpayer instructions and refund any remainder (allow IDRS to refund).

    2. If the taxpayer requests return of the payment, issue a refund including any interest as appropriate.

    3. Input TC 290 with a zero amount. Forward the transcript to the files with the response attached, if there is one.

  13. If the taxpayer does not respond within 45 days, transfer the payment(s) following the procedures below:

    1. If payment is less than a year old, use Form 2424, Account Adjustment Voucher. Follow procedures in IRM 3.17.10.3., Unidentified Remittance File (URF), for preparing Form 2424.

    2. If payment is more than a year old, use Form 8758, Excess Collections File Addition. Follow procedures in IRM 3.17.220.2.1.1, Preparation of Form 8758, for preparing this form.

    3. Attach the transcript and IDRS prints to the Form 2424 or Form 8758. Input an IDRS history to indicate the actions taken (no response to 112C/credit to URF or XSF via Form 2424 or Form 8758).

  14. Close all open LEVY control bases after all required actions are taken.

TRIS - Voice Balance Due Report

  1. The TRIS Voice Balance Due (VBD) Payment Report lists each account (both ACS and NON-ACS) for which a full pay agreement or an installment agreement (IA) has been accepted. The daily reports detail the agreement type, duration, amount owed, payment date, and monthly payment amount. The cases on the report represent the installment agreements and full pay agreements that were established in TRIS the prior day. This report can be retrieved at the TRIS website: http://trismis.tris.irs.gov .

  2. Required analysis of VBD Report is as follows:

    1. Verify all balance due modules are in Status 60. If any balance due module is not in Status 60, analyze the account to determine what prevented and/or reversed the Installment Agreement status. Document findings on AMS.

    2. Release all Levy and/or Notice of Federal Tax Lien (NFTL) actions that occurred after the VBD IA was established.

    3. Release all wage levies regardless of when they were established.

    4. Move the case to CO with the history code TOC0,21,VBDIA.

    Reminder:

    Once filed, ACS does not have the authority to release or withdraw NFTLs. This must be coordinated through the Advisory office through which the NFTL was filed, usually where the taxpayer resides. For further guidance, see IRM 5.19.4.6.4, Post-Lien Filing Calls and Lien Withdrawals, and IRM 5.19.4.6.5, Lien Releases.

Vendor Validation for Telephone Number Research (TNR)

  1. The Philadelphia ACS Support will perform the quarterly vendor validation, telephone number research (VV-TNR) process as detailed in IRM 5.19.5.10.

ACS CORRESPONDENCE, ENVELOPES, and FORMS

ACS Output Explanation Mailer Envelope Return Envelope Inserts
LT 11 - (Certified Mail) Final Notice (1058) E–142 E–205 Pub 594
Pub 1660
Form 12153
LT 11 - NC (Non Certified Mail) Final Notice (1058) POA Copy E-178 E-205  
LT 11 - Foreign Address (Registered Mail) Final Notice (1058)   E-211 E-205 Pub 594
Pub 1660
Form 12153
LT 14 Request for Additional Information (2057) E–178 E–205  
LT 16 Request for Telephone Contact (2050) E–178 E–205  
LT 18 IRC 6020(b) Referral Warning Letter (1615) E–178 E–205  
LT 21 Balance Due Letter (726 (ACS) E–178 E–205  
LT 23 Correspondence Acknowledgment Letter (96 ACS) E–178 E–205  
LT 24 Payment Proposal Letter (1741) E–178 E–205  
LT 25 Short-Term Agreement Confirmation Letter (1829) E–178 E–205  
LT 26 Return Delinquency Letter (4903) E–178 E–205  
LT 27 CIS Instructions (1737) E–178 E–205 433F
LT 33 Requests balance due when a recent payment did not full pay the account (675). E–178 E–205  
LT 35 To secure information on claimed payments (116). E–178 E–205  
LT 37 Used when rejecting a taxpayer's written request for an adjustment and unable to contact the taxpayer by telephone (1735). E–178 E–205  
LT 38 Penalty Abatement Denial Letter (2637) E–178 E–205 Notice 910
LT 39 Reminder Notice E–178 E–205  
LT 40 Notification of Possible Third Party Contact (Bal Due) E–178 None  
LT41 Notification of Possible Third Party Contact (Ret Del) E-178 None  
LT 99 Please call us about your overdue taxes or tax returns. E–178 E–205  
LP 47 Address Information Request E–178 E–208 Business Reply Mail return envelope (BRM)
LP 51 Request to State Employment Commission (1740) E–178 E–208 BRM
LP 52 Request to Secretary of State (751) E–178 E–208 BRM
LP 53 Request to Division of Motor Vehicles (1001) E–178 E–208 BRM
LP 59 Levy Follow-Up (668–C) E–178 E–205  
LP 61 Request to Locate Individual (sent to employers) (1743) E–178 E–208 BRM
LP 62 Request to Locate Individual (sent to financial institutions) (1739) E–178 E–208 BRM
LP 64 Request to Locate Individual (sent to neighbor or other third party) (1731) E–178 E–208 BRM
LP 68 Levy Release (668D) E–178 None  
668–A (C) Notice of Levy E–178 E–205  
668–W (C) Notice of Levy on Wages, Salary, and Other Income E–178 E–205 Publication 1494 printed with Levy
F. 8519 Taxpayer's copy of Notice of Levy E–178 E–205  

Request for Signature Change for ACS printed products (NOT21 and NOT22)

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