5.19.12 Centralized Lien Operation

Manual Transmittal

June 03, 2020

Purpose

(1) This transmits revised IRM 5.19.12, Liability Collection, Centralized Lien Operation.

Material Changes

(1) 5.19.12.1 through 5.19.12.1.7. Added internal controls section. Incorporates information in former subsections 5.19.12.1 and 5.19.12.1.1.

(2) 5.19.12.1.7.1. Renumbered from 5.19.12.1.2.

(3) 5.19.12.2. Note on form revisions previously located in 5.19.12.2.1 relocated to (6).

(4) 5.19.12.2.1. Modified title. Inserted (1) regarding the assessments that are included on NFTLs. Inserted (10) to provide guidance on handling requests where the original collection statute expiration date (CSED) has passed or soon will pass. Other paragraphs renumbered.

(5) 5.19.12.2.1.1. Included joint name lines is (2) list. Added Note to (3) about how multiple assessments for the same tax period appear. Inserted (4) to address filing a notice of federal tax lien (NFTL) on a secondary taxpayer and (5) to address assessments made on different dates.

(6) 5.19.12.2.1.2. Modified title. Rearranged paragraphs for flow. Added clarifying information about co-obligors and enhanced guidance for processing co-obligor and power of attorney (POA) information.

(7) 5.19.12.2.1.3. Redesigned (1) to bullet format.

(8) 5.19.12.2.3.2. Inserted (3) to address the exclusion of satisfied liabilities from the NFTL refile. Redesigned (4) to remove bullet list.

(9) 5.19.12.2.3.3. Updated title. Added Note to (2) to clarify information needed for an effective Not to Be Filed lien record (NTBFL).

(10) 5.19.12.2.5.1. Modified title for clarity. Revised (1) to bullet list and included all estate tax lien documents.

(11) 5.19.12.2.5.2. Expanded (1) to provide basic information about special condition NFTLs. Clarified instructions and inserted (5) for processing special condition NFTLs.

(12) 5.19.12.2.5.3. Updated reference in (1). Clarified notification procedures in (6).

(13) 5.19.12.2.5.5. Updated description of jeopardy NFTLs in (1). Included information throughout about termination assessments. Updated (6) to reinforce responsibility to notify taxpayer and POA.

(14) 5.19.12.2.5.6. Incorporated subsection for MFT 74/76 assessments that was added from IPU 18U1554 dated December 17, 2018, and updated procedures for MFT 74 assessments.

(15) 5.19.12.2.5.7. Added new subsection for filing NFTLs on post-petition tax liabilities.

(16) 5.19.12.2.6. Revised (7) and (8) to include additional details for processing refile requests. Clarified (14) about notifying the taxpayer.

(17) 5.19.12.2.6.1. Added new subsection for refiling in special circumstances.

(18) 5.19.12.2.7. Revised (2) to remove “accepted offer in compromise” as acceptance of an Offer in Compromise (OIC) alone does not satisfy the liability. Inserted (7) for manually prepared releases. Added Reminder to (8) about basis for releases and incorporated IPU 18U1554 dated December 17, 2018, that clarified TAS’ authority to release liens.

(19) 5.19.12.2.7.1. Incorporated IPU 18U1554 dated December 17, 2018, (formerly IPU 17U0100 dated January 13, 2017) that clarified when a lien can be released for pending and requested adjustments and added paragraph for providing Notice 48 when certificate of release is issued directly to the taxpayer. Rearranged table in (3) for flow and updated verbiage for legal accuracy.

(20) 5.19.12.2.7.2. Updated verbiage in (2) for legal accuracy. Added Note to (3) about ALS processing split assessments.

(21) 5.19.12.2.7.3. Moved wording for flow.

(22) 5.19.12.2.7.4. Added guidance to (7) to advise taxpayer of responsibility to pay filing fee.

(23) 5.19.12.2.7.5. Changed title and moved information about revocations to 5.19.12.2.7.6.

(24) 5.19.12.2.7.6. New subsection comprised of information previously in 5.19.12.2.7.5. Included additional information to explain need for revocation.

(25) 5.19.12.2.7.6.1. Added new subsection about partial revocations.

(26) 5.19.12.2.7.6.2. Added new subsection for when revocations must be manually prepared.

(27) 5.19.12.2.8. Updated (6) and (7) regarding history documentation.

(28) 5.19.12.2.8.1. Clarified (4) about the information to input to the ALS history.

(29) 5.19.12.2.8.2. Updated references and titles.

(30) 5.19.12.2.8.3. Updated procedures to reflect current assignment of withdrawal after release requests.

(31) 5.19.12.3. Clarified the process of for the systemic posting of transaction codes

(32) 5.19.12.3.1. Updated title.

(33) 5.19.12.3.2. Corrected title of Beckley Finance Center unit.

(34) 5.19.12.3.3.3. Clarified the types of documents that may need to be added to the billing support voucher (BSV).

(35) 5.19.12.4.1. Revised input time in (5) to ten days.

(36) 5.19.12.4.1.1. Revised input time in (10) to ten days.

(37) 5.19.12.6. Updated Example in (4).

(38) 5.19.12.6.1. Clarified the media types in (7).

(39) 5.19.12.6.2. Inserted links.

(40) 5.19.12.7.1. Reworded (3).

(41) 5.19.12.7.1.1. Added Note to (6) about the validity of the CDP notice.

(42) 5.19.12.7.2. Updated procedures in (6) for handling restricted interest cases. Added Note to (9) to reaffirm the deadline for TAC to request an immediate lien release.

(43) 5.19.12.7.4. Corrected title of Beckley Finance Center unit.

(44) 5.19.12.7.5. Incorporated IPU 18U1554 dated December 17, 2018, that corrected cross-reference for faxing tax information and modified other cross references for disclosure rules. Inserted (2)(e) to address disclosure rules for persons listed on the NFTL.

(45) 5.19.12.7.5.1. Incorporated IPU 18U1554 dated December 17, 2018, that clarified requirements for third party authorization when a payoff is requested. Updated Note to (1) regarding the use of the Centralized Authorization File (CAF). Added Note to (3) to clarify that researching CAF is not necessary if a Form 2848 or Form 8821 has been received.

(46) 5.19.12.7.5.2. Clarified procedures in (3) for requests where no NFTL is filed. Updated procedures in (4) table regarding referrals to revenue officers (ROs) and added Notes about subsequent referrals and private collection accounts. Clarified letters to use in (6). Inserted (7) about payoffs for specific NFTLs. Qualified (8) for payoff requests involving expired liens. Modified the payoff computation date in (10). Combined paragraphs about manual computation in (11) and added guidance about grace period dates. Incorporated IPU 18U1554 dated December 17, 2018, (formerly IPU 17U0100 dated January 13, 2017) that added paragraph (12)(b) regarding input of manual calculations to IDRS. Clarified procedures in (21) for updating payoff requests by third parties.

(47) 5.19.12.7.5.3. Updated address for overnight mail and inserted (for processing tax returns included in correspondence.

(48) 5.19.12.7.5.4. Added Reminder to (4)about collecting from mirrored assessments. To table in (5), inserted row for pending payments and clarified process for credit transfers.

(49) 5.19.12.7.5.4.1. Added new subsection for handling inquiries about missing payments.

(50) 5.19.12.7.5.5. Expanded description of certificate of discharge in (2). Added row to table in (4) for passport certification inquiries.

(51) 5.19.12.8.2. Specified the estate tax lien documents in (1). Clarified (3) on how lien documents may be received and (5) about the Field Office Resource Team’s (FORT’s) responsibility for signing electronic versions.

(52) 5.19.12.9.2. Corrected (1) to show the systemic TC 971 is triggered by printing the NFTL.

(53) 5.19.12.9.4. Revised time to resolve reports in (7) to five days.

(54) 5.19.12.9.4.1. Revised time to resolve reports in (6) to five days.

(55) 5.19.12.9.5. Added Reminder to table in (8) about not filing replacement NFTLs for satisfied modules.

(56) 5.19.12.12. Updated the list of electronic filing locations.

(57) 5.19.12.13.2 through 5.19.12.13.2.3. Retitled and restructured former subsections to expand information about disaster relief and added new subsections to clarify roles.

(58) 5.19.12.13.3. Inserted (4) to reference for high risk disclosure procedures.

(59) 5.19.12.13.4. Added new subsection for government shutdown procedures.

(60) Exhibit 5.19.12-1. Modified title. Converted from graphic file and restructured to make 508 compliant.

(61) Exhibit 5.19.12-2. Added withdrawal after release (WDAR) acronym.

(62) Exhibit 5.19.12-3. Added reference to applicable IRM subsection.

(63) Exhibit 5.19.12-4. Added reference to applicable IRM subsection.

(64) Exhibit 5.19.12-5. Added reference to applicable IRM subsection.

(65) Editorial changes throughout to update links and references and correct grammatical and formatting issues.

Effect on Other Documents

This IRM supersedes IRM 5.19.12, dated March 3, 2016, and IRM Procedural Update (IPU) 18U1554 dated December 17, 2018.

Audience

SBSE Collection Centralized Lien Operation

Effective Date

(06-03-2020)

Ronald Takakjy
Acting Director, Collection Policy
Small Business/Self Employed

Program Scope and Objectives

  1. The Notice of Federal Tax Lien (NFTL), as described in IRC 6323, is a public notification of the government’s claim against the taxpayer’s property for a tax debt. NFTLs are controlled through the Automated Lien System (ALS). The Centralized Lien Operation (CLO) has primary responsibility for inputting NFTL-related requests to ALS, processing lien documents generated by ALS, and maintaining the inventory of NFTLs on ALS. CLO is also responsible for answering NFTL-related questions from internal and external customers.

  2. Purpose: This Internal Revenue Manual (IRM) section provides instructions for CLO in preparing lien documents, assisting customers with NFTL-related inquiries, and maintaining the accuracy of NFTLs on ALS.

  3. Audience: This IRM is primarily for CLO personnel, but is referenced by Field Collection and other IRS personnel who work with lien documents or handle inquiries involving NFTLs.

  4. Policy Owner: Director, Collection Policy. Small Business/Self-Employed Division (SBSE)

  5. Program Owner: Collection Policy, Enforcement is the program office responsible for overseeing the lien program. Campus Collection has management oversight of the Centralized Lien Operation.

  6. Primary Stakeholders: SBSE Collection and Wage & Investment (W&I). Other functions that are affected by, or have input to, the procedures include Chief Counsel, Appeals, and the Taxpayer Advocate Service (TAS).

  7. Program Goals: Provide policy and procedural guidance to IRS personnel for processing NFTLs and related lien documents through ALS.

Background

  1. The federal tax lien, which is sometimes called the “assessment lien” or “statutory lien," arises when a tax liability is assessed, demand for payment is made, and the taxpayer neglects or refuses to pay. While the federal tax lien establishes the claim of the government against the taxpayer’s property, a Notice of Federal Tax Lien (NFTL) is needed for the federal tax lien to compete with certain classes of creditors. The NFTL is filed in the public record to put third parties on notice of the government’s outstanding lien against the taxpayer’s property and rights to property.

  2. The Automated Lien System (ALS) is used to generate NFTLs and provide controls for the inventory of NFTLs. ALS is also used to generate documents related to NFTLs such as amended NFTLs, lien releases, revocations of release, and NFTL withdrawals.

  3. CLO has primary responsibility for inputting information to, and processing lien documents generated by, ALS.

Authority

  1. The authority for NFTL program is found in the following code and regulation sections.

    Code Section Regulation Description
    26 USC 6321 §301.6321-1 Lien for taxes
    26 USC 6322 no regulation Period of lien
    26 USC 6323 §301.6323(a)-1 through §301.6323(j)-1 Validity and priority against certain persons
    26 USC 6325 §301.6325-1 Release of lien or discharge of property
    26 USC 6326 §301.6326-1 Administrative appeal of liens
  2. The following Policy Statements and Delegation Orders regulate NFTL filing.

    • IRM 1.2.1.6.2, Policy Statement 5-2, Collecting Principles

    • IRM 1.2.1.6.13, Policy Statement 5-47, Notices of lien generally filed only after taxpayer is contacted in person, by telephone or by notice

    • IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates

Roles and Responsibilities

  1. The Director, Collection Policy is responsible for overseeing policy and procedures regarding NFTLs.

  2. The Director, Campus Collection is responsible for overseeing the management of CLO.

  3. CLO has primary responsibility for inputting information to, and processing lien documents generated by, ALS. Other major duties of CLO include the following

    • Processing ALS generated documents, which include, but are not limited to, Notices of Federal Tax Lien (NFTL), Certificates of Release of Federal Tax Lien, Withdrawals of Filed Notice of Federal Tax Lien, and Revocations of Release of Federal Tax Lien

    • Processing requests for manual lien documents

    • Certifying payment of recording fees

    • Reconciling systemic issues identified by ALS error listings

    • Maintaining ALS information tables

    • Researching taxpayer accounts

    • Responding to verbal and written communications from taxpayers, practitioners and other third parties

    • Assisting IRS employees regarding non-technical ALS related issues

    • Communicating verbally and in writing with taxpayers, taxpayer designees, recording officials, and IRS employees

  4. Employees authorized to make determinations regarding specific lien actions are responsible for ensuring procedures are properly followed.

  5. Managers are responsible for ensuring employees are duly delegated to perform lien actions and that they are in accordance with policy and procedures.

  6. Other roles and responsibilities related to the lien program can be found in IRM 5.12.1.5, IRS Organizations Working Lien Issues, and its subsections.

  7. IRM 5.12.1.6, Locations of IRM 5.12 Content, identifies IRM locations associated with NFTL determinations, filing, withdrawal, maintenance, and release. It is within the specific IRM sections that lien program responsibilities, instructions, and procedures are identified.

Program Management and Review

  1. ALS electronically stores data regarding NFTLs. ALS generates numerous reports to monitor NFTL filings. See the ALS User Guide, Chapter 15, ALS Logs and Reports, for a complete listing. Systemic counts of lien documents are included in the monthly Collection Activity Report (CAR).

  2. To facilitate the management of workload, CLO maintains counts for various work streams under its control. CLO also monitors the age of the work to ensure compliance with the time frames as stated throughout this IRM. A work item is considered "old" or "overage" if the item is not resolved within the specified time frame. Generally, the age computation of a work item starts the day after CLO receives the item. The CLO receipt date does not count as a business day.

    Note:

    Responsibility for counting work items and monitoring aging issues is determined by CLO management based on available resources.

  3. Reviews of CLO are conducted annually by Campus Policy.

  4. NFTL activity is reviewed and documented in numerous other ways, including those shown on the following table.

    Type Source Occurrence Description
    Audit TIGTA Annual "Statutory Review of Compliance With Notice of Federal Tax Lien Due Process Procedures"
    Audit TIGTA Annual "Trends in Compliance Activity"
    Report IRS.gov Annual NFTL program numbers are published yearly in the IRS Data Book, Enforcement: Collections, Penalties & Criminal Investigation, Table 16
    Report TAS Annual The National Taxpayer Advocate, Annual Report to Congress includes aspects of the lien program.
    Monitor CFO On-going NFTL filing fees are monitored by the Chief Financial Officer (CFO) and SBSE budget offices.
    Review NQRS On-going NFTL quality is monitored for Field Collection through reviews conducted using the Field Compliance Embedded Quality standards identified with Attribute 410, NFTL Determination/Filing. (IRM 5.13, Collection Quality Measurement)
    Review NQRS On-going NFTL quality is monitored for Campus through reviews conducted using the Campus Embedded Quality Review System. (IRM 21.10.1, Embedded Quality (EQ) Program)
    Review Policy Ad Hoc “Timeliness of Lien Releases, Quality Assurance Internal Compliance Review” (IRM 5.12.3.18, Review of Lien Release Timeliness)
    Review Policy Ad Hoc Centralized Lien Operational Review

Program Controls

  1. IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates, stipulates the IRS positions authorized for lien activities.

  2. NFTLs are created and maintained through ALS. CLO is primarily responsible for updating and maintaining ALS data.

  3. Access to systems used in the NFTL process is controlled following standard access guidelines through the Online 5081 (OL5081). The primary systems accessed by CLO are ALS and the Integrated Data Retrieval System (IDRS). Other systems or databases that may be used depending on the nature of the situation include, but are not limited to

    • Automated Non Master File (ANMF)

    • Integrated Collection System (ICS)

    • Account Management System (AMS)

    • Integrated Automated Technologies (IAT)

    • Accurint

    • Netronline

    Note:

    User Guides for most of the systems referenced are available on the IRS intranet and should be consulted for specific instructions on their usage.

  4. There are numerous reports to monitor NFTL filings and ALS activity. See theALS User Guide, Chapter 15, ALS Logs and Reports, for a complete listing of ALS reports.

  5. For closed records associated with NFTLs, see Document 12990, Records and Information Management Records Control Schedules, the Internal Revenue Service Records Control Schedule (RCS 28), Tax Administration - Collection, Item 43, Notice of Federal Tax Lien and Certificate of Release of Federal Tax Lien.

Terms/Definitions/Acronyms

  1. The table below differentiates key terms in the lien program.

    Term Definition
    Lien The federal tax lien that arises when tax is assessed, demand is made, and the liability is not paid. This is sometimes called the "statutory lien" or "assessment lien."
    Notice of Federal Tax Lien (NFTL) The document filed in the public record to put third parties on notice of the existence of the federal tax lien. One notice of lien can list as many as 15 individual statutory liens.

    Caution:

    The term "lien" is often used generically by external and internal customers when referring to the NFTL. Also, ALS routinely uses “lien” in its functional titles. Generally, CLO deals with the processing of the NFTL and related documents. For information regarding the legal distinctions between the NFTL and statutory federal tax lien, see IRM 5.12.1, Lien Program Overview, and IRM 5.17.2, Federal Tax Liens.

  2. A listing of common terms and acronyms used in the lien program is shown in Exhibit 5.19.12-2, Glossary of Common Acronyms and Terms for Centralized Lien Operation. The table below shows common acronyms used specially with ALS and lien document processing.

    Acronym Definition
    ALS Automated Lien System
    BSV Billing Support Voucher
    CLO Centralized Lien Operation
    CPS Correspondence Production Services
    CRD Court Recording Date
    CSED Collection Statute Expiration Date
    EFT Electronic Fund Transfer
    ELF Electronic Lien [NFTL] Filing
    FMS Financial Management Service
    FORT Field Office Resource Team
    IFS Integrated Financial System
    LFI Lien [NFTL] Filed Indicator
    NFTL Notice of Federal Tax Lien
    PLL Potentially Lost Lien [NFTL]
    SLID Serial Lien [NFTL] Identification
    WDAR Withdrawal of NFTL After Lien Release
  3. In addition to the acronyms above, the table below shows generic terms frequently used by CLO in lien document processing.

    Generic Term Common Reference
    County Recording office (e.g., county recorder)
    Court Recording office (also an ALS command)
    Field Field Collection
    Release Certificate of Release of Federal Tax Lien
    Revocation Revocation of Certificate of Release of Federal Tax Lien
    Spool ALS print repository
    Voucher Billing Support Voucher (also an ALS command)
    Withdrawal Withdrawal of Filed Notice of Federal Tax Lien
    Beckley Accounts Payable Financial Operation, a unit at the Beckley Finance Center

Related Resources

  1. The form used to provide notice of the lien is Form 668(Y), Notice of Federal Tax Lien. Other forms used in the lien program are listed in IRM 5.12.1.11, NFTLs and Certificates, and cited throughout this IRM.

    Note:

    Forms with a (c) suffix, e.g., Form 668(Y)(c), denote they are computer-generated. Not all forms generated through ALS contain the suffix. The presence or absence of the suffix has no bearing on the validity of the form.

  2. IRM 5.17.2, Legal Reference Guide for Revenue Officers, Federal Tax Liens, provides additional details about lien law such as the types of property subject to the federal tax lien and the priority of the federal tax lien versus other competing encumbrances.

  3. IRM 5.12.1, Lien Program Overview, provides additional information, websites, and job aids related to the lien program.

  4. The Automated Lien System (ALS) User Guide illustrates the steps for creating and maintaining lien documents. (http//mysbse.web.irs.gov/Collection/collsystems/als/userguide/default.aspx)

  5. Links to tools and references to assist IRS employees with lien processes may be found on the My SB/SE website. Similar information for taxpayers may be found on the Understanding a Federal Tax Lien page on IRS.gov.

  6. This IRM is for procedural use and does not provide detailed instruction on the use of any system. User Guides such as the ALS User Guide should be consulted, as needed.

  7. Taxpayer rights with regard to IRS processes are stipulated in IRC 7803(a)(3) and on the Taxpayer Rights intranet page (https://irssource.web.irs.gov/SitePages/Taxpayer%20Bill%20of%20Rights.aspx). Taxpayers’ specific rights regarding lien processes are referenced throughout this IRM.

  8. IRM 10.5.1.6.7.3, Shipping, provides guidelines for handling Personally Identifiable Information (PII). In carrying out its duties, CLO routinely deals with PII and must follow these procedures.

    Note:

    The filing of NFTLs and related lien documents in the public record is not subject to PII procedures.

Integrated Automation Technologies (IAT)
  1. Integrated Automation Technologies (IAT) tools simplify processing by assisting the user with IDRS research and input. The tools reduce the chance of errors and improve productivity. They are desktop productivity enhancing tools.

  2. CLO employees must use the IAT tools shown below whenever applicable for use.

    ID Number Tool
    637 Credit Transfer
    672 Disclosure Tool
    848 Fill Forms
    1147 Compliance Suite
    4636 Payment Tracer/Tracer
  3. If a required tool is not used because it was determined to be not appropriate for a specific situation, document the reason in the case file.

  4. If an IAT tool is not available and/or an employee has a problem with the IAT Task Manager, the case should be processed through IDRS following established procedures.

  5. The IAT web page should be checked periodically for new tools that may assist in processing cases. Descriptions of each tool, as well as job aids can be found on the web site. (https//organization.ds.irsnet.gov/sites/WiMttIat/home/default.aspx)

Lien Documents

  1. The form and content of lien documents are established by the Internal Revenue Service by the authority of IRC 6323. ALS is the system used to maintain lien documents.

  2. IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates, stipulates the positions delegated the authority to file an NFTL and includes the following:

    • Revenue Officers

    • ACS Customer Service Representatives

    • Offer Specialists

    • Advisors

    • Insolvency Specialists

    • Certain Tax Examiners

      Note:

      See IRM 1.2.2.6.4 for specific authority within the described positions and other delegated positions.

  3. NFTL filing requests are received by ALS through the following methods:

    • Systemically through ICS

    • Systemic extracts from ACS

    • Manual input directly on ALS

  4. ALS allows the creation of a number of lien documents, including the following:

    • Form 668(Y)(c), Notice of Federal Tax Lien

    • Form 668-F, Notice of Federal Tax Lien Under Internal Revenue Laws (refile)

    • Form 668-Z, Certificate of Release of Federal Tax Lien

    • Form 12474, Revocation of Certificate of Release of Federal Tax Lien

    • Form 12474-A, Revocation of Certificate of Release of Federal Tax Lien (self-releasing lien)

    • Form 10916, Withdrawal of Filed Notice of Federal Tax Lien

    • Form 10916-A, Withdrawal of Filed Notice of Federal Tax Lien after Release

      Note:

      ALS also produces partials of all the documents listed above except the Form 668(Y)(c).

  5. Certain guidelines must be followed when inputting data to ALS. Review input requests and reject any request with items that do not follow the guidelines established in this IRM. Explain in detail why the request is being rejected and what is needed to correct the request. Rejected requests must be approved by the Team Manager or Lead.

  6. Lien documents and request forms are periodically updated. Due to programming constraints, updates to documents and forms may not occur for some time after the revision. For instance, a form revised in 2019 may not be available on all system templates until 2020. When there is a form revision, a transition period is established for the mandatory use of the form. Unless expressly stated, the prior revision remains effective during the transition.

Notice of Federal Tax Lien Requests

  1. An NFTL can be filed for any statutory lien with a balance due, provided filing is not legally restricted. Generally, the statutory liens (assessments) shown on the NFTL are those that carry their own statutory period for collection (CSED). For list of assessments that have their own CSED, see IRM 5.1.19.2.1, Transaction Codes That Carry Their Own CSED, or IRM 25.6.1.12, Collection Statute Expiration Date (CSED).

  2. NFTLs are most often requested systemically through ICS or ACS, but may also be requested manually on Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien, or, in certain emergency situations, by telephone.

    1. For systemic requests, CLO is normally not involved in the creation of the NFTLs by ALS.

    2. For manual requests, CLO is responsible for inputting data to ALS to create the NFTLs.

  3. Upon receipt of the Form 12636, review the form for completeness, including the co-obligor and POA information. See IRM 5.19.12.2.1.2. Secondary Taxpayer/Co-Obligor and Power of Attorney.

  4. There are three sections that must be completed when creating an NFTL. When a request is received, review for the information shown in the table below.

    Section Information Needed within the Section
    Entity - Taxpayer Identification Number (TIN)
    - Taxpayer's name and address, including the name of the general partner when applicable
    - Entity type, e.g., Individual, Sole Proprietor, Corporation, Partnership
    - Business Operation Division (BOD), e.g., SBSE, W&I
    Tax Module - Tax form, Civil Penalty code, or MFT 31, if applicable
    - Tax period
    - Assessment date
    - Dollar amount of the unpaid balance of assessment
    Administrative - Requester’s name
    - Requester’s title
    - Requester's assignment number
    - Recording office where the NFTL is to be filed
  5. The ALS Create screen is used to create and generate NFTLs on ALS. The screen is divided into the same input segments as listed above for the requests.

  6. While completing the entity section, first enter the TIN. ALS will check the Delinquent Inventory/Account Listing (DIAL) and the ALS database for other entities under the TIN.

    Reminder:

    Consult the ALS User Guide, Chapter 4, Create New Liens, for creating an NFTL on ALS.

  7. Select the entity on ALS that matches the request or input the entity information as shown on the request. Incorrect information could make the NFTL ineffective and necessitate an amended NFTL be filed.

  8. ALS systemically generates the name control based on the taxpayer name input. Compare the name control shown on ALS to the taxpayer name line. Confirm the name control on IDRS and update ALS as necessary. This action will prevent the lien filing indicator (TC 582) from going unpostable.

    Note:

    It is very important that the information input to ALS is correct. The TC 582 and other transaction codes are delivered to Master File based on the information on ALS. If certain information is incorrect (i.e., TIN, Name Control, Type of Tax, or Tax Period), the codes will not post, which could cause delays in the systemic release of the lien.

  9. After the entity information, input the tax module data.

    1. If DIAL located the entity and brought up the entity information it will also bring up the tax periods for which no NFTL has been filed. Verify the tax period data against the request.

    2. For tax periods not on the DIAL, input the tax period data from the request.

      Reminder:

      Consult the ALS User Guide for creating an NFTL on ALS.

  10. When inputting the assessment date for the tax period, remember NFTL After Original CSED (NAOC) and refile rules. See IRM 5.12.7.7.2, NFTL Filed After Original CSED (NAOC), and IRM 5.19.12.2.6, Refiling a Notice of Federal Tax Lien.

    1. If the assessment date is more than 10 years and 30 days in the past, an updated CSED must be input. Contact the requester if the updated CSED was not provided with the request. Failure to update the CSED will cause ALS to mark the tax period as expired and possibly generate a lien release.

    2. If the assessment date is nearing 10 years and 30 days old, an updated CSED is not needed; however, the requester should be reminded that the NFTL must be refiled before the Last Day for Refiling (10 years and 30 days). Failure to timely refile the NFTL will cause the lien to self-release.

  11. When making data entries to ALS, if an entry is readily recognized as one that will cause an unpostable (e.g., typographical error in tax period, inconsistent tax form), make the correction and notify the requester or contact the requester to clarify the information. If the request is incomplete or indiscernible or the requester cannot be contacted, return the request stating the reason for the rejection.

    Note:

    See IRM 5.19.12.2.1.1, NFTL Input Requirements, for common situations to avoid when creating an NFTL.

  12. After all tax period data has been entered, review the data for accuracy.

  13. Enter the Administrative information as requested on the input document.

  14. Enter the requester's information.

    1. If the requester is from ACS or Accounts Management, see IRM 5.19.12.2.1.3, ALS Assigned Numbers, for the assignment number table

      Note:

      DO NOT USE THE SPECIFIC EMPLOYEE NUMBER OF THE ACS EMPLOYEE MAKING THE REQUEST.

    2. All other requesters should supply their employee assignment number (tsign) in their request.

      Note:

      NFTLs cannot be created without an employee assignment number. The employee must be established on ALS.

  15. ALS defaults to the recording office (or "court" ) assigned to the Zip Code of the taxpayer's address. If no recording office is specified on the request, use this default recording office. Occasionally the recording office will not populate on ALS. If this happens, check IDRS to ensure the Zip Code was listed on the request correctly.

    1. If the address on the request matches the address on IDRS except that the Zip Code is different, use the IDRS Zip Code.

    2. If the address on the request matches the address on IDRS and the Zip Code is the same, research the ZIP Code on the U.S. Postal Service web site.

  16. Once the correct recording office is identified, ensure the recording office is not under a disaster area freeze. Also, ensure the recording office is not one where lien documents are no longer filed.

    1. If necessary and available, research MAINTXC on ALS to confirm the status of the recording office.

    2. If changes are needed, forward the Zip Code and the recording office information to the ALS coordinator to update the Zip Code table in ALS for future use.

  17. After confirming the recording office, the NFTL is generated and a Serial Lien Identification (SLID) number is systemically assigned.

  18. Input additional filing locations for the NFTL when requested.

  19. Input the information regarding the POA when applicable. Electronically filed NFTLs must be approved before the POA information can be entered. See IRM 5.19.12.12, Electronic Lien Filings (ELF).

  20. Fees charged by recording offices are assessed against the taxpayer as a TC 360. Included in the fee assessed are the charges for both filing and releasing of the lien. This upload from ALS to Master File is done on Friday morning and covers the NFTLs that were on vouchers from the prior Friday through Thursday. The fees assessed are based on the ALS fee tables, but are updated if the amount is edited on the voucher. This fee will be assessed against the oldest assessment from the modules on the NFTL.

  21. ALS will also send an NFTL filing indicator TC 582 for all periods on the NFTL. See IRM 5.19.12.9.1, TC 360 Rejects, and IRM 5.19.12.10, GUF Unpostables, for information regarding correction of unposted TC 360 and TC 582

    Note:

    ALS also sends TC 971 AC 252 to indicate the issuance of the CDP notice.

  22. When an NFTL is suppressed from the voucher and from printing it is considered a manual filing. The prep date will be treated as a print date and the fees will be assessed as though it was on a voucher. The fees will be based on the court fee table.

  23. Creation of NFTLs on ALS must be completed within five (5) business days after receipt of the request.

  24. For inventory purposes, each SLID generated by ALS is counted as one NFTL. If a request is for two filing locations, (e.g., county recording office and Secretary of State), that is two SLIDs and would count as two NFTLs

  25. Time spent creating NFTLs is reported under OFP code 810-69080. If the request is made using the toll free phone number, use OFP 700–69000.

NFTL Input Requirements
  1. Certain input requirements for entity, MFT, and tax period data must be followed when creating the NFTL on ALS. The following are common situations to avoid during input. This list is not all inclusive.

  2. DO NOT CREATE AN NFTL WITH THE FOLLOWING:

    • Master File and Non-Master File liabilities on the same NFTL

    • Civil Penalty modules using a joint name line

    • Joint and individual liabilities using a joint name line

    • MFT 31 modules using a joint name line

    • Anything other than "MFT31" as the tax type when inputting NFTLs on MFT 31 modules

    • Both IMF and BMF liabilities on the same NFTL

    • MFT 59 modules and other MFT types on the same NFTL

    • An Individual Shared Responsibility Payment (SRP) assessment, shown on IDRS as MFT 35 or mirrored assessment MFT 65

      Note:

      SRP assessments are not subject to the filing of an NFTL. Return requests showing SRP assessments to the requester.

    • An incorrect name control

      Note:

      See Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers, and Document 7071-A, Name Control Job Aid - For Use Outside the Entity Area, for help in determining the correct name control.

    • Joint liabilities where the names are split between two lines

      Reminder:

      Both names should appear on the first name line with "and" or "&" between the names to ensure both parties are systemically sent a CDP notice. If it is not possible for both names to fit on the first line, use NOTADD to input the Co-Obligor's information for the CDP notice.

    • A Zip Code located in a designated disaster area, as seen by a -O freeze on the IDRS account (see IRM 5.19.12.13.2, Disaster Relief)

    • The abbreviation of CVPEN (or variations) for civil penalty assessments instead of the IRC Section number as the tax type (e.g., 6672, 6721)

      Note:

      There may be limited situations where the use of CVPEN is authorized until ALS reference tables are updated with an appropriate code. Questions about the usage should be directed to the FORT.

    • More than 15 assessments on one NFTL. An ALS-generated NFTL can show a maximum of 15 assessments

  3. Requests are frequently received where there are multiple assessments under the same tax period (e.g., TC 150 and TC 290/300, multiple TC 240). In some of these requests, the outstanding liability may not be due from the initial assessment, but only from the subsequent assessment(s). In those instances, the information about the initial assessment can be excluded from the NFTL; however, it is permissible for it to be included. Contact the requester if clarification is needed. If the requester affirms their request or cannot be contacted, input the request as indicated by the requester.

    Note:

    When there are multiple assessments on one tax period, ALS combines the amounts of each assessment to show a total unpaid balance of assessment (UBA) for the tax period. Only the total UBA for the tax period appears on ALS and the printed NFTL, and it shows with the tax period’s last assessment. The UBA fields for the tax period’s other assessments appear blank or with zero

  4. Occasionally, an NFTL may be requested for only the person listed second on a joint assessment (e.g., the primary taxpayer is in bankruptcy and the assessment has not yet split). In this situation, the primary taxpayer’s SSN must be used to create the NFTL on ALS. Even though the name line only shows the secondary taxpayer, the assessment is under the primary taxpayer’s SSN and that SSN is needed to establish the link between ALS and Master File.

  5. Normally, a tax assessment and its related penalty assessments are made for the tax period on the same date. These are not differentiated on the NFTL request and can be shown as one assessment for the tax period on the NFTL. Occasionally, the tax and penalty assessments are made on different dates. Any assessment that carries its own CSED should be listed separately on the NFTL.

  6. If an ALS response such as "duplicate lien" or "lien already filed" is received during input, review the request to ensure input accuracy. Contact the requester if questions remain.

    Reminder:

    The duplicate lien message most often appears when a subsequent NFTL is being created for the same assessments in a different location. In those situations, continue input of the request.

  7. When necessary data for input is missing, indiscernible, or is inconsistent with the conditions in paragraph (2) above, or you are otherwise unable to create the NFTL, reject the request back to the requester. Provide a detailed explanation of why the NFTL could not be created, advise the requester to resubmit a corrected request, and close the request.

    Reminder:

    Rejected requests must be approved by the Team Manager or Lead.

Secondary Taxpayer/Co-Obligor and Power of Attorney
  1. A co-obligor is a person who is jointly and severally responsible for the tax liability such as a secondary spouse on a joint income tax assessment or the general partners for a partnership liability. A power of attorney (POA) is someone authorized to represent the taxpayer. The IRS is required by law to separately notify a co-obligor when an NFTL is filed with their name. Duly authorized POAs must also be notified of NFTL filings against their clients.

  2. ALS generally recognizes co-obligor situations if the co-obligor is listed on the first name line of the NFTL with the primary obligor and their names are joined by "and" or "&." If the co-obligor is not listed in this manner, the co-obligor information must be manually added to ALS.

    Example:

    If the NFTL name line shows "John & Jane" as the taxpayers, ALS systemically identifies Jane as a co-obligor. If the NFTL shows "John" on the first name line and "Jane" on the second name line, Jane’s information as a co-obligor must be manually input to ALS.

  3. Other situations where co-obligor information may need input manually include

    • The co-obligor has a different address from the primary taxpayer

    • The co-obligor has a different POA from the primary taxpayer.

  4. Generally, for systemic NFTL requests, POA information relative to the NFTL modules is systemically downloaded to ALS when the NFTL request is transmitted. There will be times, however, when it is necessary for CLO to manually input a POA on ALS, such as the following situations

    • The NFTL requester identifies a POA but their information has not yet posted to the Centralized Authorization File (CAF).

    • The co-obligor has a different POA than the primary taxpayer.

    • The NFTL is manually requested outside ACS or ICS.

  5. It is the responsibility of the requester of an NFTL to ensure they inform CLO of all POAs and co-obligors that are to be noticed.

    • If a Form 12636 is received that shows a co-obligor in item 5 but does not show that co-obligor's name in the Taxpayer name line (item 1), contact the requester for clarification. If the requester is not available, reject the Form 12636 and explain that co-obligors are only noticed if they are included on the NFTL.

    • Requests to input information for co-obligors or POAs might be received after the NFTL was created and/or mailed for filing. Requests after the NFTL creation might not be on Form 12636.

  6. Upon receipt of the Form 12636, verify that item 4 regarding the POA has been addressed and, if applicable, specific POA information has been provided in item 5.

    If... And... Then...
    Item 4 has not been completed (i.e., no box is checked) There is no POA information in item 5 Return the form to the requester for completion
    Item 4 has not been completed (i.e., no box is checked) There is POA information in item 5 Process the form based on the POA information provided
    Item 4 indicates there is no POA (i.e., "no" is checked) There is POA information in item 5 Return the form to the requester for clarification
    Item 4 indicates there is a POA (i.e., "yes" is checked) There is no POA information in item 5 Return the form to the requester for completion
    Item 4 indicates there is a POA (i.e., "yes" is checked) There is POA information in item 5 Process the form based on the POA information provided
    There is no item 4 as an older version of the form has been submitted (i.e., revision date before 8/2013) n/a Return the form to the requester for completion of the most recent revision.
  7. Co-Obligor and POA information is input to ALS using the literal command NOTADD. See the ALS User Guide, Chapter 6, RRA Notices, for input instructions. Remember the following when inputting the information.

    • When the POA information is for a co-obligor it is important to load the co-obligor information before loading the POA. Highlight the appropriate co-obligor's name on the NOTADD screen before inputting the POA information so the POA will receive notification of the NFTL filing for their specific client.

    • For NFTLs requested through ICS, POA information cannot be input until the NFTL uploads to ALS, which generally occurs the day after the request is made on ICS.

    • If the NFTL is for a recording office where the filing is completed electronically, the NFTL must be approved for filing before the input of the POA or co-obligor information to ALS. Filing approval must only be done on Tuesday and Thursday. See IRM 5.19.12.12, Electronic Lien Filings (ELF).

ALS Assigned Numbers
  1. ALS employee assignment numbers are known by different names by the various operations.

    • Field Collection, Advisory, and Insolvency employees use their TSIGN (e.g., their ICS assignment number) for NFTL requests. This number is employee specific.

    • ACS and Accounts Management (AM) employees do not use a TSIGN or an employee specific assignment number. NFTL requests from ACS and AM use a more generic number based on the BOD and site.

  2. ALS assignment numbers for ACS and AM requests are constructed as shown in the table below.

    Requester's BOD Assignment number
    SB/SE The first two digits of the number will be the same as the area location followed by 000008. Example: 21000008 is the ACS site for SBSE Area 1. The first two digits will always default to the area the input person is logged into on ALS.
    W&I The first two digits of the number will be the same as the area location followed by 000000. Example: 11000000 is W&I Area 1. The first two digits will always default to the area the input person is logged into on ALS.
NFTLs Hand Carried for Filing
  1. Employees generally request NFTLs systemically through ICS or ACS. If a systemic request is not possible, employees may request CLO create the NFTL by faxing or secure emailing a completed Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien. See IRM 5.19.12.2.1, Notice of Federal Tax Lien Requests, for processing NFTL requests.

  2. Sometimes there is a need for immediate filing of the NFTL and the normal printing and mailing process will not suffice. These instances require the NFTL to be manually prepared and hand carried to the recording office.

  3. The originator is responsible for manually preparing the NFTL. See IRM 5.12.7.4, Manual NFTL Preparation.

  4. Employees who have access to ICS and are assigned the Bal Dues on ICS must use ICS to secure a SLID for the manually prepared NFTL.

    Note:

    When a SLID is created on ICS for a manually prepared NFTL, the information for the NFTL is uploaded to ALS and it shows as a new NFTL. This allows for subsequent input of the court recording data (CRD).

  5. If the employee cannot secure the SLID from ICS or the assessment is posted to IDRS but is within 10 calendar days, the NFTL must be input directly to ALS. Employees will request ALS input by submitting Form 12636 or by contacting CLO by phone and providing the necessary information.

  6. When requests are received for immediate issuance of a SLID, create the NFTL on ALS following standard input procedures, except as noted below.

    1. Suppress the printing of the NFTL by selecting "Off Voucher" and "N" for Print and Store options.

      Reminder:

      If the NFTL is printed as part of regular CLO processing it could result in a duplicate filing.

    2. Suppress the CDP notice after verifying that the requester will be issuing the notice.

    3. Use the requesting employee’s TSIGN when creating the NFTL.

  7. If the Form 12636 is incomplete, contact the originator for clarification. If the originator is not available, reject the Form 12636 and explain in detail why the request is being rejected and what is needed to correct the request.

  8. After generating the NFTL on ALS, give the SLID to the requesting employee for use in filing the NFTL. Remind the employee to send the recording information to CLO for updating the ALS. This will prevent the NFTL from subsequently showing as a potential lost lien, which could lead to a duplicate filing and untimely release.

  9. When the originating employee indicates there is a POA for the taxpayer, verify whether the originator will be issuing the CDP notice to the taxpayer and POA. If the employee makes the request by phone, ask the employee whether there is a POA involved.

    1. If there is a POA and the originator is not manually issuing the notices, input the information into NOTADD to generate a copy of the CDP notice to the POA.

    Reminder:

    When the NFTL is in an ELF recording office, the POA cannot be input until approval of the ELF file has been completed.

  10. When a request is received for NFTL filing that is within 10 calendar days of the assessment and the assessment has not posted to IDRS, refer the request to the FORT. See IRM 5.19.12.2.5.5, Jeopardy NFTLs. If it is within 10 days of the assessment and the assessment has posted to IDRS, input the request to ALS following the procedures noted above.

  11. If an error is made while creating the NFTL and the NFTL was placed on the BSV, complete a BSV add/delete form and give to Manager or Lead. They will notify the team responsible for printing and mailing that state's lien documents to pull the NFTL from the batch. Explain why the NFTL is being pulled.

  12. Input a history on ALS to indicate the NFTL was manually input and is being hand carried for filing.

  13. Due to the urgency that necessitates hand-carried NFTLs, requests for SLIDs for hand-carried NFTLs should be input by CLO as soon as possible, but must be input within five (5) business days after the receipt date.

  14. Report NFTL requests using:

    • OFP 810-69080, if received by paper, fax, or email

    • OFP 700-69000, if received by phone

Loading Previously Recorded NFTLs to ALS (SCREATE)

  1. Taxpayers may call in to request a lien release for an NFTL that is not on ALS. This situation may be the result of the NFTL having been purged from ALS or manually filed with the recording office without being loaded to ALS.

  2. To generate a certificate of lien release through ALS, the NFTL must first be loaded to ALS. If a request for release of lien or a request for payoff of a lien is received and there is no record of an NFTL on ALS, the person making the request should supply a copy of the recorded NFTL. This is to ensure the lien is a federal tax lien, and to obtain the recording information needed for further action on the NFTL. See IRM 5.19.12.7.5.4, Request for Release of Lien, for more information.

  3. To recreate the NFTL on ALS use the SCREATE literal command. See the ALS User Guide, Chapter 4, Create New Liens, for instructions on SCREATE.

    Caution:

    Do NOT use the ALS CREATE function when SCREATE is appropriate.

    Note:

    When the NFTL was previously created on ALS and recorded, the NFTL must be re-input to ALS using SCREATE. See exception in paragraph (5) below.

  4. When recreating the NFTL on ALS, all information must be exactly the same as on the original NFTL. Use the SLID number from the copy of the NFTL supplied with the request.

  5. Occasionally a copy of an NFTL may be received where the NFTL was recorded with no SLID (e.g., manually prepared NFTL that was hand carried and no SLID was secured prior to the recordation). Search ALS to confirm that the NFTL was not previously loaded to the system. Once confirmed, take the appropriate action.

    1. If the NFTL is still active, use CREATE to load the NFTL. Change the Prep Date on ALS to match the date shown on the NFTL, suppress the printing of the NFTL, and remove the NFTL from the voucher

    2. If the NFTL is no longer active, use SCREATE to load the NFTL. Establish a SLID for the NFTL that does not duplicate another SLID already in use. Input a history explaining why the NFTL was created and that the SLID was created.

  6. Immediately after loading the NFTL to ALS, input the court recording data (CRD).

  7. Charge time for resolving lien and request creation requests to OFP 810-69080.

Resolving Errors on NFTLs

  1. Errors on NFTLs can affect the priority of the lien. See IRM 5.12.7.9, NFTL Corrections. Also, errors impact systemic processes related to NFTLs such as the information sharing between Master File and ALS which relies on certain information matching (i.e., TIN, MFT, tax period, and name control). Information matching allows the lien indicator information to pass to Master File and for ALS to receive information such as updated CSED and satisfaction of a tax module.

  2. The process for resolving errors differs depending on whether the NFTL has been printed and the nature of the error. Before the NFTL is printed, it can be edited/corrected. After it has been printed, an amended NFTL or "Not To Be Filed" lien record (NTBFL) is needed.

    Note:

    The terms "corrected" and "amended" are often used interchangeably by the requester, but they are two different processes in ALS.

Correcting NFTLs
  1. Any information on an NFTL can be corrected or edited on ALS until it is printed from the ALS print spool (Tuesday and Thursday). Once the CDP notice is triggered, the NFTL cannot be edited. If a correction can be made prior to printing, an Amended NFTL is not necessary.

  2. When receiving notification of an error, review the ALS print spool for the SLID number of the NFTL to see if it has been printed.

    1. If the NFTL has not been printed, edit the NFTL using the CORRECT function. See the ALS User Guide, Chapter 5, Resolving Lien Errors, for instructions.

    2. If the NFTL has been printed, an amended NFTL or NTBFL is needed, depending on the error.

  3. After an NFTL has been printed from the ALS spool, CORRECT will only allow a change to the name control. If the name control is the only correction that is needed, no amended NFTL is required.

  4. For NFTLs that were created in an electronic recording office, the approval of the ELF queue is equivalent to printing and mailing other documents. Once the approval is done the status of the NFTL changes from "new" to "approved elf" and the NFTL cannot be edited. When receiving notification of an error on an ELF NFTL, review ALS to see if the filing has been approved.

    1. If the ELF filing has not been approved, disapprove the NFTL from the queue and input the correction.

    2. If the ELF filing has been approved, an amended NFTL or NTBFL is needed, depending on the error.

Amended NFTLs
  1. After the NFTL is printed (or approved for an ELF recording office), errors on an NFTL are fixed by amending the NFTL or creating a NTBFL on ALS. The nature of the error determines which is needed. IRM 5.12.7.9.2, Correcting the Filed NFTL, provides details on which should be requested and is summarized in the following table.

    Type of Error Resolution Needed
    Name of Taxpayer Amended NFTL
    Name Control Correct on ALS
    Taxpayer Address No change to NFTL
    Tax Period Amended NFTL
    Assessment Date Amended NFTL
    TIN Not To Be Filed lien record
    Dollar Amount Amended NFTL only if significant error
    Filing location New NFTL
  2. DO NOT use the amend function to add a name to an NFTL. The name line should only be amended to clarify the taxpayer's name already on the NFTL or remove the name of a non-liable person/entity. An NFTL should not be amended to show a new person/entity. A new NFTL should be requested for that new person/entity.

  3. When amending an NFTL that included multiple tax periods, do not include any tax periods that have been satisfied. The amended NFTL should only reflect the tax periods that currently have a balance due.

  4. In order to amend an NFTL, recording information is needed on the original NFTL. If no CRD has been input to ALS, use the best research method available to locate the recording information and update ALS accordingly. If unable to locate the recording information, notify the requester and ask them to obtain the information before resubmitting the request.

  5. For step by step instructions on how to generate an amended NFTL on ALS, see the ALS User Guide, Chapter 5, Resolving Lien Errors.

  6. When generating an amended NFTL, input a history on both SLIDs stating the reason the NFTL was amended, the name of the requester, and the cross-reference SLID.

  7. Amended lien documents will remain in paper format for electronic recording offices. The amend program will generate a print file for amended documents to send to these recording offices. The Court program will allow the input of recording information on these amendment SLIDs. Once CRD is input to the amended NFTL it will be converted to an electronic NFTL and the release will be electronic.

    1. In order for ALS to generate a print file, the recording office must be reassigned as a paper court. Contact the FORT for assistance.

    2. For the recording offices of USDC Boston and Secretary of State Connecticut, no paper lien documents are needed. Complete the amended NFTL on ALS and the document will show up as an amended NFTL on ALS for viewing.

    3. Amended NFTLs for Secretary of State California are completed in the same manner as non-electronically filed amended NFTLs.

  8. The ALS Amend program issues a new CDP notice based on the reason for amending. If changes are made to the tax period or assessment date, a Letter 3172 is generated unless the corrected tax module appears on another NFTL. In that situation a Letter 3171 will be generated. The CDP Notice generates when the amended document is printed. A CDP Notice does not generate for changes to the name, TIN, or name control.

  9. Amended NFTLs are worked within five (5) business days after the receipt date.

  10. OFP 810-69080 is charged for completing the amended NFTLs.

Not To Be Filed Lien Record
  1. When there is an error in a field that does not impact the validity of the NFTL (i.e., error in TIN or MFT), a Not To Be Filed lien record (NTBFL) must be created to establish the link between ALS and Master File. For other errors, an amended NFTL is needed. See table in 5.19.12.2.3.2 above.

  2. NTBFLs, sometimes referred to as "dummy" liens, are created with the same information as on the original NFTL except with the corrected TIN and/or MFT. NTBFLs should only be input by CLO.

    Note:

    To reduce confusion, the NTBFL data should match the original NFTL except for the error(s) that was corrected. However, as long as the erroneous item is corrected to establish the link with Master File, it is not essential that the NTBFL contain all the other, correct tax period data that was on the NFTL. For example: An original NFTL included 15 modules and there was an MFT error on only one module. An NTBFL that shows only the one incorrect module and does not include the other 14 correct modules would be effective in establishing the link, but it could cause confusion to someone subsequently researching the NFTLs on ALS.

  3. NTBFLs are so named because they do not get filed. They are for internal use only. If a NTBFL is inadvertently printed, the history should be reviewed to determine appropriate steps. NEVER mail a NTBFL to a recording office.

  4. To create a NTBFL follow standard NFTL creation procedures in the ALS User Guide except as noted below.

    1. Suppress the NFTL from the billing support voucher (BSV).

    2. Suppress the CDP notice from printing.

    3. Select "Not To Be Filed" as the recording office (court number 721999).

    4. Input a history on the NTBFL and original SLID explaining the reason for the NTBFL and cross-referencing the SLIDs. Remember, this history needs to supply enough information so that a release for the original NFTL can be input when a release for the NTBFL is generated.

    Note:

    For other guidance on preparing NTBFLs, see the ALS User Guide, Chapter 5, Resolving Lien Errors.

  5. As the modules on the NFTL are satisfied, Master File notifies ALS, which updates the status of the modules on the NTBFL. The modules are also placed on the SATMOD report so that the module on the original NFTL can be marked as satisfied. This is to ensure no delays in the release of the original, recorded NFTL.

  6. After all the modules on the NTBFL have been satisfied a release will be systemically generated. The release will be placed into the print spool. When the release prints, the employee reviewing the lien documents pulls the release for the NTBFL and uses the ALS history information to request a release for the original NFTL. The release for the NTBFL can be discarded after use.

    Reminder:

    Not To Be Filed lien records or releases of NTBFLs must NOT be filed with any recording office. They are used to inform CLO of an action needed.

  7. OFP 810-69080 is charged for completing the creation of NTBFL.

Duplicate Filings of NFTL

  1. A duplicate NFTL filing condition exists when:

    • the same NFTL with the same SLID is recorded more than once at the recording office, or

    • identical NFTLs with different SLIDs are recorded at the same recording office.

  2. Duplicate NFTLs might result from the recording office inadvertently recording both parts of the NFTL (i.e., the recording copy and the IRS copy) or from an NFTL being manually prepared and hand-carried for filing without the systemic printing of the NFTL being suppressed. They also can occur if duplicate requests are input to ALS.

  3. CLO may receive inquiries on duplicate NFTL situations from internal or external customers. Duplicate NFTLs are most often found when inputting recording data and it is discovered that recording data is already on ALS for the NFTL.

    Example:

    The NFTL (SLID 123456789) returned from the recording office shows Book 5 page 33. ALS already shows CRD for SLID 123456789 as Book 2 page 4.

  4. When conflicting information is found while inputting CRD for a SLID, double check the SLID to make sure the correct NFTL is displayed. If it is the correct NFTL, research Accurint, Netronline, or another appropriate website to determine if there is a duplicate NFTL filing.

    1. If it is determined that the recording information on ALS is incorrect, there is not a duplicate filing. Correct the recording information on ALS through "maintenance."

      Note:

      Check with your Manager to find out if you are profiled for correcting CRD.

    2. If it is discovered that part one and part two of the NFTL were inadvertently recorded, input the recording data on ALS for the first part filed and take actions to address the duplicate filing (described below). Also, check other NFTLs on the voucher to ensure they were not filed in duplicate.

  5. If a duplicate NFTL filing situation is found, identify the requester of the NFTL and try to determine the basis for the duplicate situation. CLO resolves situations where the same NFTL with the same SLID was recorded in duplicate and there is no field assignment. Other situations should be referred to the assigned employee or Advisory, if appropriate, for resolution in accordance with IRM 5.12.7.10.4, Duplicate NFTL.

  6. When there is a duplicate NFTL where the SLIDs are the same and no field assignment, prepare Letter 2440, Certificate of Duplication of Federal Tax Lien, showing the recording information of the original and duplicate NFTL.

    1. Issue Letter 2440 to the recording office for association with the duplicate filing.

      Note:

      Depending on the reason for the duplicate filing, a fee may be charged for recording the letter.

    2. Send a copy of the Letter 2440 to the taxpayer and their representative, if applicable, notifying them a duplicate NFTL was filed. The taxpayer does not need to file the letter but should retain it for future reference.

  7. In certain situations, it may be appropriate to re-create the duplicate NFTL on ALS. Generally this occurs only at the direction of the employee assigned the taxpayer's case. Re-create the duplicate NFTL on ALS following the steps below.

    1. Using SCREATE, assign a new SLID and input the information as it appears on the NFTL. See IRM 5.19.12.2.2, Loading Previously Recorded NFTLs to ALS (SCREATE).

    2. Input a history stating the NFTL is a duplicate and what the "true" SLID number is.

    3. Input the recording information on the Court screen.

    4. Input a TC 582 for the duplicate filed NFTL. No TC 360 should be input.

  8. Document ALS history with actions taken regarding duplicate NFTLs. The history should sufficiently reference recording information of the duplicate NFTL, if it is not otherwise captured on ALS.

Special Types of Notices of Lien

  1. CLO receives manually prepared notices of lien from Field Collection, Advisory, and LB&I International. The documents include, but are not limited to, the following:

    • Notices of Estate Tax Lien

    • Special Condition NFTLs, which may have a specific property description typed on the face of the document

    • Restitution-Based Assessment NFTLs

    • Mutual Collections Assistance Request (MCAR) notices of lien

    • Jeopardy NFTLs

  2. The extent of the information from these lien documents that is loaded to ALS varies. However, the documents are filed with their respective recording offices through CLO.

  3. Questions regarding other lien documents received should be directed to the Team Manager or Lead or to the FORT.

NFTLs for Estates
  1. The notice of an estate tax lien and the release of the estate tax lien are filed on the applicable forms listed below. Notices of estate tax lien are not created on ALS, or otherwise loaded to it.

    • Form 668-H, Notice of Federal Estate Tax Lien Under Internal Revenue Code Section 6324B

    • Form 668-I, Certificate of Release of Federal Estate Tax Lien Under Internal Revenue Section 6324B

    • Form 668-J, Notice of Federal Estate Tax Lien Under Internal Revenue Code Section 6324A

    • Form 668-K, Certificate of Release of Federal Estate Tax Lien Under Internal Revenue Section 6324A

  2. CLO receives manually prepared estate tax liens and releases from the Advisory Estate Tax Group. These documents are generally transmitted with a Form 3210. The FORT manages all estate tax lien and related documents. See IRM 5.19.12.8.2, Filing Estate Tax Lien Documents.

  3. In certain situations, a regular NFTL (Form 668(Y)(c)) can be filed against an estate. If a request is received for the creation of an NFTL against an estate, follow normal procedures to create the NFTL on ALS except as noted below.

    1. Include a “V” (or "W" for international accounts) after the SSN to indicate it's an estate.

    2. Input (usually) the tax period as 000000.

  4. File a regular NFTL against the estate following standard procedures.

  5. If a call is received from an advisor regarding where to send an estate tax lien/release give them the address to the FORT.

Special Condition NFTLs
  1. A Special Condition NFTL (sometimes generically, and inappropriately, referred to as a “Nominee NFTL”) is an uniquely-worded NFTL designed to protect the government’s interest in an asset(s) that is in a third party’s name. A Special Condition NFTL must be approved by Counsel and usually it is manually prepared by the revenue officer or Advisory.

    • There are four main types of these NFTLs (Nominee, Alter Ego, Transferee, Successor-in-Interest), but Counsel may approve other variations on rare occasions.

    • All Special Condition NFTLs have specialized name lines and certain ones (e.g., those for nominee or transferee situations) must contain additional wording that describes the property attached by the lien.

    Note:

    Detailed information about the types of special conditions and the preparation of the NFTLs can be found in IRM 5.12.7.6, Special Condition NFTL, and its related subsections.

  2. Special Condition NFTLs are forwarded to the CLO FORT for processing.

  3. If it has not already been done by Advisory or the RO, the FORT loads the Special Condition NFTL into ALS using the standard CREATE process with the exceptions noted below.

    1. Select nominee, alter ego, or “other special condition” as the entity type, depending on the condition.

    2. If the NFTL is manually prepared, suppress the NFTL from printing through ALS.

    3. If the NFTL will be hand-carried for filing by the RO, suppress the NFTL from the voucher.

  4. Additional actions to process the Special Condition NFTL may be necessary as shown in the following table.

    If the manually-prepared NFTL... Then...
    Does not have a SLID Insert the SLID generated through the CREATE process onto the NFTL.
    Is not being hand-carried for filing by the RO Add the NFTL to the BSV .
    Contains a property description of what the lien attaches Input an ALS history with an overview of the property description (e.g., property address, type of equipment).
  5. Once a Special Condition NFTL is ready for filing, it may be filed with the recording office via normal batch processing.

    Caution:

    Do NOT use batch processing if the RO is hand-carrying the NFTL for filing.

  6. When a recorded copy of a Special Condition NFTL is returned, input the CRD to ALS and forward the document to the FORT.

Restitution-Based Assessment NFTLs
  1. Restitution-Based Assessment (“Restitution”) NFTLs are filed for restitution ordered by the court following the conviction of the taxpayer on a criminal tax violation or tax-related offense. These NFTLs contain special wording to indicate the nature of the assessment(s). These NFTLs can be printed through ALS or manually prepared by the revenue officer (RO). See IRM 5.1.5.18.2, Notice of Federal Tax Lien (NFTL) Filing on Restitution-Based Assessments (RBA), for additional information.

  2. Requests for Restitution NFTLs cannot be made through ICS. The requester must submit Form 12636 (or, if manually prepared, a copy of the NFTL) to CLO for input to ALS.

  3. Upon receipt of Form 12636, follow standard processes to review the request and input the information to ALS, with these exceptions:

    • The type of tax must be the form involved in the restitution preceded by an “R” (e.g., R1040, R941). The assessments show on IDRS under MFT31, but that is not acceptable as a type of tax on the NFTL. Inclusion of the “R” is crucial for ALS to recognize the NFTL as a Restitution NFTL.

    • Only restitution-based assessments may be included on the NFTL. Due to the special wording of these NFTLs, other types of assessments (e.g., 1040, 6672, etc.) must not be included.

    • The number of entries in the tax form section is limited to 14 line items to allow space for the special wording.

  4. Restitution NFTLs generated by ALS should be printed and mailed following standard procedures.

  5. In situations where the NFTL will be hand-carried for filing, the requester must manually prepare the NFTL and contact CLO for a SLID. Upon receipt of a request for a SLID, use the standard CREATE process with exceptions for the following actions.

    1. Place an “R” in front of the tax form number to indicate the restitution situation (e.g., R1040, R941).

      Note:

      Inclusion of the “R” is crucial for ALS to recognize the NFTL as a Restitution NFTL.

    2. Ensure that only restitution-based assessments are included in the NFTL.

    3. Verify that the number of entries in the tax section does not exceed 14.

    4. Suppress the NFTL from printing through ALS.

    5. Suppress the NFTL from the voucher.

    6. Suppress the systemic CDP notification.

    7. Input a history to ALS about the manual preparation and filing.

    8. Provide the SLID to the requester.

  6. For Restitution NFTLs printed and filed by CLO, the CDP notice is systemically issued. For those manually prepared, the requester is responsible for issuing the CDP notice to the taxpayer and, if applicable, copying their POA.

Mutual Collection Assistance Request NFTLs
  1. MCAR notices of lien are created because certain tax treaties contain clauses under which the treaty partners can request assistance from the Service in collecting taxes owed them by individuals residing in the United States. The mutual collection treaty partners are as follows:

    • France

    • Sweden

    • Denmark

    • Canada

    • the Netherlands

  2. A MCAR notice of lien does not look like a regular NFTL and it is not input to ALS. It should come with a request explaining the lien document is to be filed and who needs to receive the recorded document back. The lien documents are placed in the normal batch processing.

  3. When these documents are returned from the recording office, forward them to the requester.

Jeopardy NFTLs
  1. Occasionally, in special circumstances, a tax assessment is accelerated to expedite the normal assessment process. This generally is done when it is determined that collection of tax is at risk or the assessment statute expiration date (ASED) is imminent. There are four types of accelerated assessments

    • Jeopardy assessments

    • Termination assessments

    • Quick assessments

    • Prompt assessments

    See IRM 5.1.4, Jeopardy, Termination, Quick and Prompt Assessments, for details about each type.

  2. In many of these situations, it is necessary to immediately file an NFTL as soon as the assessment is made and notice is given. These are categorized as "Jeopardy NFTLs," regardless of the type of assessment. There are other situations when an accelerated assessment is not made, but it is necessary to file an NFTL before the assessment posts to IDRS. Although the situation differs, the NFTL request is also categorized as a "Jeopardy NFTL" because it is handled the same on ALS. See IRM 5.12.7.7.1, Jeopardy and Prompt Assessments.

  3. Jeopardy NFTLs must be manually prepared by the requester. NFTL requests involving assessments that have not posted to IDRS will cause an unpostable of the TC 582, 360, and 971 AC 252.

  4. Jeopardy NFTLs are controlled in the FORT. Any request for a Jeopardy NFTL received by a CLO Team should immediately be forwarded to the FORT.

  5. Upon receipt of a Jeopardy NFTL request, the FORT creates a Not To Be Filed lien record (NTBFL) on ALS. This allows for the generation of a SLID for the manually-prepared NFTL but prevents transaction codes from posting to IDRS. See further details in IRM 5.19.12.2.3.3, Not To Be Filed Lien Record.

    Reminder:

    Be sure to use OFF Voucher and STORE Only options.

    Caution:

    Termination assessments normally are made under Non-Master File (NMF) so the TIN must have an “N” suffix.

  6. Give the SLID to the revenue officer to manually prepare and file the NFTL. Remind the RO to return the recording data . The RO is responsible for issuing the CDP notice to the taxpayer and, as applicable, copying the POA.

  7. Input an ALS history identifying the NFTL as a jeopardy NFTL and monitor for the RO to return the CRD.

  8. When the CRD is received, take the actions below.

    1. Verify the assessment has posted to IDRS.

    2. Correct the court selection to the appropriate recording office where the NFTL was filed.

    3. Input the CRD.

  9. Advise the RO to input the TC 360, 582, and 971 AC 252 to the module(s) as appropriate.

NFTLs on Employee Benefit Plans
  1. NFTLs may be requested for assessments made in relation to Form 5330, Return of Initial Excise Taxes Related to Employee Benefit Plans, and Form 5500, Annual Return/Report of Employee Benefit Plan. The process to create these NFTLs in ALS differs slightly from normal procedures. These NFTLs can be printed through ALS or manually prepared by the revenue officer (RO).

  2. Assessments made for Form 5330 appear on IDRS under MFT 76 and for Form 5500 under MFT 74. Whenever an assessment is made under either of these MFTs, a corresponding plan number is embedded in the assessment. Each plan has an associated three-digit plan number assigned by the employer/sponsor (e.g., 001, 002) and multiple MFT 74/76 assessments can exist for each tax period. Proper identification of the plan number related to the assessment is needed when creating the NFTL.

    Note:

    See IRM 5.12.7.7.6, Employee Benefit Plans, for additional information.

  3. Requests for NFTLs for MFT 74/76 assessments cannot be made through ICS. The requester must submit Form 12636 (or, if manually prepared, a copy of the NFTL) to CLO for input to ALS.

  4. Upon receipt of Form 12636, follow standard processes to review the request and input the information to ALS, with the exceptions noted below.

    Form 5330 / MFT 76 Assessments
    • The type of tax must be the plan number associated with the assessment, preceded by an “E” (e.g., E001).

    • Only MFT 76 employee benefit assessments should be included on the NFTL.

    Form 5500 / MFT 74 Assessments
    • The type of tax must be the plan number associated with the assessment, preceded by a “P” (e.g., P001).

    • Only MFT 74 employee benefit assessments should be included on the NFTL.

    Note:

    The alpha prefix is crucial for ALS to recognize the NFTL as a MFT 74/76 assessment. When printed through ALS, the NFTL will convert the plan number to show Form 5330 or Form 5500, as appropriate. The plan number also facilitates the posting of the NFTL transaction codes to IDRS.

  5. Print and mail NFTLs generated by ALS for these assessments following standard procedures.

  6. In situations where the NFTL will be hand-carried for filing, the requester must manually prepare the NFTL and contact CLO for a SLID. Upon receipt of a request for a SLID, follow the standard CREATE process with exceptions noted below.

    1. In the type of tax field for Form 5330 / MFT 76 assessments, place an "E" in front of the plan number (e.g., E001). The requester must provide the plan information with the request. For Form 5500 / MFT 74 assessments, place a "P" in front of the plan number (e.g., P001).

    2. Ensure that only MFT 74 or 76 assessments are included on the NFTL.

    3. Suppress the NFTL from printing through ALS.

    4. Suppress the NFTL from the voucher.

    5. Suppress the systemic CDP notification.

    6. Input a history to ALS about the manual preparation and filing.

    7. Provide the SLID to the requester.

  7. For NFTLs printed and filed by CLO, the taxpayer’s CDP notice is systemically issued. For NFTLs manually prepared, the requester is responsible for the issuance of the CDP notice and the input of all applicable transaction codes to IDRS.

NFTLs During Bankruptcy
  1. When a taxpayer files bankruptcy, the automatic stay of the bankruptcy prohibits various collection activities, including filing new NFTLs for the tax liabilities that arose before the bankruptcy ("pre-petition liabilities" ). Generally, NFTLs for these liabilities cannot be filed until the bankruptcy is dismissed or discharged.

  2. During the bankruptcy, the taxpayer can incur additional tax liabilities ("post-petition liabilities" ). Occasionally, an NFTL may be filed for the post-petition liabilities even though the bankruptcy is still open. These NFTLs must be specially annotated to clarify that they do not attach the assets under the jurisdiction of the bankruptcy court. See IRM 5.17.11.14, Collection of Post-petition Taxes.

  3. Because of the special wording needed, NFTLs for post-petition liabilities must be manually prepared.

  4. The requester should manually prepare the Form 668(Y) using an available template and include a statement in the body of the form such as “This Notice of Federal Tax Lien does not affect assets under the jurisdiction of the bankruptcy court.” The manually prepared form should be emailed to CLO for SLID assignment and filing.

  5. Upon receipt of the form, CLO takes the following actions.

    1. Input the data from the form into ALS to secure the SLID.

    2. Insert the SLID on the Form 668(Y).

    3. Print the Form 668(Y) and associate it with other documents for filing.

    4. Return a copy of the Form 668(Y) to the requester.

  6. The requester is responsible for preparing and issuing the CDP notice to the taxpayer and the POA, if appropriate.

  7. After filing, CLO follows standard procedures for inputting CRD and maintaining the NFTL on ALS.

Refiling a Notice of Federal Tax Lien

  1. An NFTL is valid for a specific period of time. The date this time period expires is usually seen on the NFTL under column (e), "Last Day for Refiling." There are situations where the liability is still owed and the statutory period for collection (CSED) for the liability is extended beyond the time the NFTL is valid. When this occurs it is necessary to refile the NFTL to continue its effectiveness. See IRM 5.12.8, Notice of Lien Refiling, for additional details.

  2. An NFTL can contain up to 15 different statutory liens (i.e., assessments), each with its own assessment date and refile date; However, the NFTL for each different assessment can only be refiled within 1 year of the refile period expiring. Therefore, a refile document may contain some, but, not all, of the assessments on the NFTL and there may be multiple refiles associated with one NFTL.

    Example:

    An NFTL was filed for 4 tax periods. The Last Day for Refiling for the first tax period is in 6 months, for the second tax period in 2 years, and for the third and fourth tax periods in 4 years. The NFTL can be refiled for the first module now as it is within one year of the refile time period expiring. The NFTL cannot be refiled for the second tax period until next year. The third and fourth tax periods can be included on one refile document, but the refile cannot be done for three years.

  3. Refiles are not systemically input or requested. They must be manually input to ALS. Refer to the ALS User Guide, Chapter 9, Refile a Lien - Update a Lien, for directions on inputting refiles.

  4. A request for refile is normally submitted on Form 12636. The request must specify several things, including the following:

    • The tax periods to include in the refile

      Note:

      A tax period may have multiple assessments on the NFTL. Only those assessments that still have a balance due should be included in the refile. The request should specify which assessments in the tax period to include.

    • The new CSED

      Note:

      It is essential to input the updated CSED for each period on the refile. If the CSED is in suspense due to litigation, the CSED field of Form 12636 should show all asterisks (**/**/****) or a future date (e.g., CSED plus 20 years). The requester should not put N/A in the CSED field of the Form 12636.

    • The current unpaid balance of assessment for the tax period

    • Whether there was a change of address for the taxpayer

  5. Contact the requester if any required information is missing. Also, Form 668-F, Notice of Federal Tax Lien Refile, only allows for six assessments to be included on a refile. If the refile request is for more than the allowed six assessments, notify the requester and explain two refile documents will be generated.

  6. The NFTL must be refiled in the recording office where it was originally filed. There can be situations when the refiled NFTL can also be filed in a different location even though an NFTL was not previously filed in that location (e.g., taxpayer relocated from one county to another). When such a request is received, generate the refile on ALS for the original location, then follow the ALS prompts to generate another refile for the additional filing location.

    Note:

    A request for refiling the NFTL in a different recording office from where the NFTL was filed is consistent with IRC 6323(g). In these situations, the refiled NFTL effectively serves as a new NFTL filing in that "different" recording office. To reduce potential confusion, the requester may ask for a new NFTL in the "different" recording office instead of refiling the original NFTL there.

  7. When processing a refile request, ensure enough time is left in the refile time frame for the refile document to be created in ALS, printed and processed by CLO, mailed to the recording office and recorded. If the refiled NFTL reaches the recording office after the refile deadline it will be ineffective and may be rejected by the recording office. If there is insufficient time for the refile to be recorded (generally, less than 21 days), contact the requester and advise that a hand-carried refile is needed.

  8. If the lien has self released or is expired (i.e., it is after the Last Day for Refiling and/or "exp" shows on ALS), notify the requester of the status. Advise that refiling is not possible and they must revoke the self-released/expired lien if they determine a new NFTL is appropriate (e.g., balance due, time remaining on CSED). Refer to IRM 5.12.3.14, Revocation of Lien Release, for further details.

  9. When a refile needs to be hand-carried for filing, CLO may receive an urgent request from a Collection employee through the 800 Internal Aspect Phone System, by secure email, or by fax for a SLID. Input the refile data to ALS following standard procedures with the exceptions noted below.

    1. Suppress the printing of the document and the appearance of it on the voucher.

    2. Provide the SLID to the requester to add to their manually-prepared document.

    3. Enter a history item in ALS that the refile document was prepared outside of ALS and hand-carried for filing.

  10. After hand-carrying the document for filing, the originator should secure email CLO a copy of the refiled NFTL with the court recording data.

  11. If a CSED is updated after an NFTL is filed, ALS is systemically notified of the change and updates its records accordingly. ALS monitors the computed refile dates for all NFTLs. If a refile date is approaching and the CSED has been extended or suspended, ALS marks that NFTL for inclusion in the Potential Refile Report.

  12. The Potential Refile Report provides a list of periods on NFTLs where the CSED has been extended and there is still a balance due. The Potential Refile Report can be generated by the office working the report (usually Advisory).

  13. Refile requests must be worked within five (5) business days after the receipt date in CLO.

  14. The NFTL refile is processed the same as any lien document. No special processing is required once the refiled document is created on ALS. For refiles printed and processed by CLO, a copy of the NFTL refile will be sent to the taxpayer from CPS. For refiles manually prepared and filed, the RO sends a copy to the taxpayer.

Refiling in Special Circumstances
  1. Refiling an NFTL continues the lien’s priority on all property or rights to property of the taxpayer. Occasionally, the NFTL should only be refiled with respect to specific property. This situation most often occurs when the CSED expires but there is property under seizure or was not included in a bankruptcy proceeding. See IRM 5.10.4.12, Refiling Notices of Federal Tax Lien - Collection After Statute Has Expired, and IRM 5.9.17.5.2, Collection from Exempt, Abandoned, or Excluded Property (EAEP).

  2. In this situation, the Form 668-F must include a statement regarding the lien’s attachment such as "The refiling of the Notice of Federal Tax Lien is limited to the following described property and is not intended to affect any other property of the taxpayer named above." The statement should be followed by a description of the specific property involved.

  3. Because of the special wording, the Form 668-F must be manually prepared, normally by the requester. When a request for a manually prepared refile is received, take the following actions.

    1. Secure a SLID for the refile from ALS and provide it to the requester.

    2. Suppress the printing of the refile through ALS.

    3. Process the manually prepared Form 668-F following standard procedures.

Lien Release

  1. One NFTL can include up to 15 different federal tax liens (assessments). Basically, each tax assessment shown on the NFTL is a separate federal tax lien.

  2. Under IRC 6325, the IRS is required to release a lien within 30 days of when it has been satisfied or is no longer enforceable (e.g., statute expiration). Liens can be satisfied by various methods, including, but not limited to the following:

    • Full payment

    • Abatement of tax, penalty, and/or interest

    • Credit offset that full pays the liability

    • Litigation settlement

  3. A release of lien can take one of two forms.

    • A Form 668-Z, Certificate of Release of Federal Tax Lien, was issued.

    • The lien “self-released” (i.e., the “Last Day for Refiling” on the NFTL passes and the NFTL is not re-filed).

      Note:

      If the “Last Day for Refiling” is not specified on the NFTL, the self-release provision is not in effect and a certificate of release must be issued when the CSED expires. See IRM 5.12.3.4.1.1, Self-Releasing Lien.

  4. The IRS is generally not required to issue a certificate of release until all the liabilities listed on the NFTL are satisfied or no longer enforceable. When all the liabilities on an NFTL have been satisfied, a Form 668-Z is issued.

  5. The majority of releases are generated systemically. When a tax module with an NFTL filed indicator (TC 582) on Master File is satisfied and the account goes into status 12, a satisfied module indicator is sent systemically to ALS. Through the program ModSat, ALS marks satisfied periods with a 528 in the status column of the NFTL. ALS then runs a program called Relscan, which looks for NFTLs that have all tax modules satisfied and generates a release. If all modules on the NFTL are not satisfied, the release will not generate.

  6. There are times when a release must be issued before the systemic process can be completed or will not be completed within 30 days. These situations require manual input to ALS.

  7. In certain situations, lien releases may be manually prepared and issued. Most often, manual preparation is done when a taxpayer requests an immediate release in exchange for full payment made to Field Collection or a Taxpayer Assistance Center.

    Note:

    Payments for immediate releases must be made by certified or guaranteed funds. For other types of payments, a release can only be immediately issued if it is shown that the payment has cleared the financial institution. See IRM 5.12.3.3.1.1, Liability Satisfied by Payment, and IRM 5.12.3.3.1.1.1, Electronic and Credit Card Payments.

  8. IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates, lists SBSE employees who have the authority to approve lien releases and other lien-related certificates. IRM 13.1.4.2.3.20, Lien Release, provides the Local Taxpayer Advocate with limited authority to release federal tax liens.

    Reminder:

    A certificate of lien release may be issued only when the conditions of IRC 6325(a) or IRC 6326 have been met. Employees authorized to release liens must follow standard release procedures defined in this and related IRMs.

  9. When a lien expires due to statute expiration, a Form 668-Z is generally not issued. The self-release language on the NFTL fulfills the requirements for release. See IRM 5.12.3.4.1.1, Self-Releasing Lien, for more information.

  10. At times, a recording office identifies a release document as being “questionable” or fraudulent and contacts CLO for assistance. If the release cannot be verified, ask the recording office to fax the document. If the document still cannot be verified, contact the FORT to make a determination on referring the case to TIGTA. See IRM 5.12.3.8.2, Fraudulent Lien Certificate Recorded.

Manual Release of Liens
  1. A request for a manual input of a lien release might be received by telephone or in writing from an internal or external customer.

    • Requests from IRS employees are generally made on Form 13794, Request for Release or Partial Release of Federal Tax Lien.

    • See IRM 5.19.12.7.5.4, Request for Release of Lien, for guidance on processing external requests.

  2. For direction on how to input the release on ALS, refer to the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals.

  3. To input a release on ALS, it is necessary to identify the date of the satisfying transaction. The table below explains the date to use in different circumstances.

    Reminder:

    This table is only to determine the date to input to ALS to process the release. The dates described are not necessarily the dates that begin the 30-day period in which the IRS is required to release the lien. For that information, see IRM 5.12.3-1, Starting Points for 30-Day Release Time Frame.

    Module satisfied by... Satisfying action date is date when... Date to use on ALS...
    Payment Credit applied TC 670 or other credit TC
    Adjustment Adjustment posted TC 291, TC 301, or equivalent TC.
    Adjustment pending (shows as pending on IDRS) Adjustment is scheduled to post Posting date shown for pending TC or current date, if earlier
    Adjustment requested (an employee requested an adjustment that will satisfy the liability and a TC 470 AC 89/90/93, but the TCs do not show yet on IDRS) Adjustment is anticipated to post The date given by requester or current date, if earlier
    Bankruptcy discharge The court discharged the liability TC 521
    Bankruptcy discharge pending (request by employee prior to discharge posting) The court discharged the liability Date given by requester (no TC date)
    Credit offset Overpayment moved from another module TC 706
    Credit transfer Original credit moved TC 670 or other credit TC
    CSED expiration CSED expired TC 608 (see IRM 5.19.12.2.7.4, Self-Releasing Liens)
    Offer in Compromise (OIC) paid Payment terms of the OIC were completed TC 780
    OIC payment pending (usually requested by MOIC/COIC prior to acceptance closure posting) Payment terms of the OIC were completed Date given by requester (no TC date)
    Tolerance Account went to status 12 Status 12 date (see IRM 5.12.3.3.1, Liability Is Satisfied - IRC 6325(a)(1))
  4. Requests from employees should contain all the necessary data for ALS input, including the requester's assignment number. Research on these requests is generally only done on ALS to ensure all related NFTLs are addressed.

    Reminder:

    Do not use ACS employee numbers to release liens. The inputting TE should use their own number.

  5. When releases are manually input to ALS, document in the ALS history why the release is being input and include enough information to identify the requester.

  6. On occasion, it is necessary for the field to issue a certificate of release directly to the taxpayer or their representative so they can hand carry it to the recording office. For example, a taxpayer requests an immediate release in exchange for a full payment or a release is requested by the Department of Justice in relation to litigation. In this circumstance, a copy of the release that was manually prepared should be provided to CLO to update ALS. Input the release to ALS following standard procedures, with the exceptions noted below.

    1. Suppress the printing of the release.

    2. Suppress the release from appearing on the voucher.

    3. Following the ALS prompts, input the name of the employee who issued the release.

    Note:

    The employee issuing a release directly to the taxpayer is responsible for the input of the TC 583 to IDRS.

  7. When a certificate of release is issued directly to the taxpayer for filing, the taxpayer should be provided Notice 48, Instructions for the Certificate of] Release of Federal Tax Lien. The notice explains the filing process and advises the taxpayer of their responsibility to pay the recording fee charged by the recording office or their option to request the IRS file the certificate following routine processing.

  8. Release requests must be worked within five (5) business days after the date of receipt.

  9. OFP 810-69080 is used for completing requests for the release of liens.

Partial Lien Releases
  1. An NFTL can show multiple taxpayers (e.g., joint liability) and multiple tax periods. There are times when it is necessary to release the lien against one of the taxpayers or some of the tax periods listed on the NFTL. When this happens a partial release of lien is issued.

  2. A partial release for one of the taxpayers listed on the NFTL is done when one taxpayer is no longer liable for the assessments listed but the other taxpayer(s) is still liable. This happens most often when there is a joint income tax liability and one spouse has been granted a discharge in a bankruptcy, has completed the payment terms of an OIC, or has been granted innocent spouse relief.

  3. Most of these partial releases are generated systemically when the tax module is being split on Master File, but requests from IRS employees for manual input may also be received.

    Note:

    When an NFTL is filed for a joint assessment (e.g., MFT 30) and that liability is subsequently split into separate assessments (e.g., MFT 31), ALS recognizes the situation and generates a partial release when one of the separate assessments is satisfied and a full release when the other separate assessment is satisfied. When NFTLs are filed for the individuals AFTER the assessment is split, ALS does not link the two accounts but follows normal systemic release processes.

  4. Partial releases for certain tax periods listed on the NFTL can be issued after each assessment is satisfied or becomes unenforceable; however, the IRS is only required to do these partial releases upon the taxpayer's request. See IRM 5.12.3.6, Partial Lien Release.

    Note:

    For individual periods that have expired or self-released, follow self released lien procedures. See IRM 5.19.12.2.7.4, Self-Releasing Liens.

  5. Requests for partial release received from an IRS employee usually do not need researched. Contact the employee if there are questions or problems.

    • The request is generally on Form 13794.

    • The request should provide a reason for the partial release (e.g., taxpayer was determined to be an innocent spouse).

    • The authority to request a partial release is the same as requesting a full release. See IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates.

  6. Requests for partial releases received from a taxpayer must be researched to determine if a partial release is appropriate.

    Caution:

    The liability under the joint entity may show satisfied, but the liability was split to separate liabilities. Ensure no liability exists under either MFT 30 or MFT 31 before processing the release request.

  7. To input a partial release, follow the same basic procedures for a manual release request except address the questions regarding the partial release. See IRM 5.19.12.2.7.1, Manual Release of Liens, and the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals.

  8. For ALS to generate a partial release, the system establishes an ALS-only document identified as a "spec doc" in the status column on ALS. From this spec doc the partial release is prepared. The spec doc has a unique SLID on ALS, but the printed document shows the original SLID and special language to indicate it is a partial release.

  9. Partial releases are printed at CLO with other lien documents following regular print schedules. Partial releases for ELF recording offices are printed and mailed by CLO and can be found in SPOOL/ELF.mmdd. The TP copies of the partial releases are systemically generated and mailed from CPS.

  10. OFP 810-69080 is charged for working requests for the partial release of lien. Requests must be worked within five (5) business days after the receipt date.

Partial Release with Tax Court Indicator
  1. Occasionally, ALS research may show a partial release was systemically created, but has not been issued. This generally happens when one person on a joint liability NFTL has made an innocent spouse claim that was denied and is challenging the assessment in Tax Court.

  2. In addition to the partial release, ALS research also shows:

    • The release is not in the manager's approval queue; and

    • When attempting to access the NFTL through the "Release," function, the user is warned that a duplicate should not be generated.

  3. IDRS research in this situation shows:

    • A TC 971 AC 102 or TC 971 AC 103, indicating the claim of the spouse was denied and is being appealed in Tax Court;

    • A TC 400 on the MFT 30 joint module, indicating the account has been transferred out; and

    • An MFT 31 for the module for the non-petitioning spouse only.

  4. The posting of the TC 971 AC 102/103 triggers a systemic partial release on ALS for the innocent spouse. However, the partial release is stored on ALS until a final decision is reached in Tax Court.

  5. When an inquiry is received regarding a partial release in this situation, advise the taxpayer the lien cannot be released until a Tax Court decision is final or the lien is full paid. Input a history item on ALS regarding the situation.

Self-Releasing Liens
  1. NFTLs filed on Form 668(Y)(c), Notice of Federal Tax Lien, show a "Last Day for Refiling" in column (e). Language on the form states that if the NFTL is not refiled by that date, the lien is considered to be released. This is known as a self-releasing lien. See IRM 5.12.3.4.1.1, Self-Releasing Lien, for further details.

  2. Each assessment shown on the NFTL has its own Last Day for Refiling. When the respective date passes and no refile has been input, ALS will place an indicator on the assessment to show the lien has expired ("EXP" ).

  3. A certificate of release is not systemically issued for a self-releasing lien. If an NFTL contains multiple liabilities that are satisfied by different means (e.g., payment, statute, etc.), a certificate of release may or may not be issued depending on how the last open liability on the NFTL was resolved.

    If the last final liability on the NFTL is satisfied by.... And the "Last Day for Refiling" for all the other liabilities on the NFTL... Then a Certificate of Release...
    Statute expiration Has passed Is not necessary
    Statute expiration Has not passed Must be issued
    Payment or adjustment Has or has not passed Must be issued
  4. If there is no "Last Day for Refiling" specified on the NFTL or the NFTL does not have the self-release language (e.g., refiled NFTLs, Forms 668(Y) issued before 1983), the self-release provision is not in effect and a certificate of release must be issued within 30 days of when the CSED passes.

    Note:

    ALS systemically issues releases when the CSED for a refiled NFTL passes.

  5. When a request for lien release is received for a self-released lien, review IDRS to ensure the CSED has not been extended and to determine if there is still a balance due on the assessment(s).

  6. If the CSED has been extended and there is still a balance due, take the following actions.

    1. Determine the status of the account and refer it to the appropriate office. See IRM 5.19.12.7.5.2, Request for Payoff, for additional information on referrals.

      Status Refer to...
      22 ACS
      26 RO
      71 Centralized Offer in Compromise
      72
      with TC 520 cc 60-67, 81, or 83-89
      Centralized Insolvency Operation
      72
      with TC 520 cc 70-75 or 80
      Advisory
      All other statuses Advisory
    2. Prepare a Correspondex Letter 3645C, Case Processing Liens, to explain that the request is being referred or, if the request is by phone, tell the caller you are referring the case for an NFTL determination and to whom the case is being referred. See IRM 2.11.1, IDRS Correspondence, on creating correspondex letters.

    3. Input an ALS or AMS history of the actions that were taken.

  7. If the CSED has not been extended or there is no balance due, advise the taxpayer of the self-release and take the following actions.

    1. Advise the taxpayer that you can provide a certificate of release that they can file at the recording office. Explain that some recording offices may not accept the certificate because they recognize the lien as being self-released. Also, advise the taxpayer that they must pay the filing fee required by the recording office.

      Note:

      The taxpayer may ask that the IRS file the certificate.

    2. Generate a Form 668-Z using the ALS literal command "PRNT668." Ensure the NFTL has CRD before printing and, if needed, update the release document with the current date.

      Note:

      In situations where the NFTL is no longer on ALS, the taxpayer must provide a copy of the NFTL and the certificate of release must be manually prepared using an available template.

    3. Send the release document to the taxpayer with Notice 48, {Instructions for the Certificate of Release of Federal Tax Lien.

    4. Update ALS with a history stating the actions taken.

  8. If the NFTL was filed in an ELF recording office, print and provide the taxpayer a facsimile of the self-released NFTL and explain it was filed in electronic recording office. If the taxpayer states they need a Certificate of Release, the lien should be released on ALS so that an electronic release is sent. The ELF recording office will not accept a paper document from the taxpayer for recording.

  9. If the recording office refuses to file a hand-carried release for the taxpayer and insists it come from the site, add the release to the next available voucher for that recording office.

    Caution:

    Sending the certificate of release directly to the recording office can cause the entire batch of documents to be rejected. If the certificate of release must be sent directly, check MAINTXC for any filing restrictions or contact the recording office prior to sending to resolve any filing problems.

  10. Paper requests for a release must be worked within five (5) business days after the date of receipt. Phone requests should be worked while the taxpayer is on the phone, unless unusual circumstances exist.

  11. OFP 810-69080 is charged for processing written requests for release of liens. If the request is by phone, use OFP 700–69000.

Reversing a Lien Release
  1. Occasionally a lien will be released on ALS, either by the issuance of a certificate of release or the self-release nature of the NFTL, and it is determined the lien should not have been released. An erroneous or improvident release must be addressed before additional actions can be taken regarding the lien.

  2. If the lien has been released on ALS but the Certificate of Release has not yet been printed, a user with the appropriate permissions, usually a manager, can reverse the release on ALS. Refer to the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals, for direction.

    Caution:

    When a release of lien is reversed, the individual modules must also be addressed on ALS. If all of the modules on the NFTL show satisfied in one way or another, a release will be systemically generated again when Relscan is run. See the ALS User Guide for instructions on reversing the SAT indicator for the modules.

  3. Once a certificate of release is filed or the NFTL expires, the release cannot be reversed on ALS. A certificate of revocation must be issued.

Revoking a Lien Release
  1. When a certificate of release is issued, the statutory lien(s) listed on the NFTL is extinguished. The same is true if the lien self-releases because the NFTL was not timely refiled. The tax liability is not extinguished and the IRS can continue to collect the liability(s) but administrative, as well as judicial, enforcement actions to collect may be restricted. See IRM 5.12.3.14, Revocation of Lien Release, for details.

  2. Sometimes a certificate of release is issued or the lien self-releases but there remains a balance due on the liabilities and the CSED is still open. Before a new NFTL can be filed, the release must be revoked to re-establish the statutory lien.

  3. An erroneous or improvident release is revoked by filing a Form 12474, Revocation of Certificate of Release of Federal Tax Lien, at the appropriate recording office.

    Note:

    The current revision of Form 12474 incorporates wording for self-released liens. Form 12474-A may continue to be used for self-released liens until programming for the revised Form 12474 is implemented.

  4. Requests for revocation are usually submitted on Form 14466, Request for Revocation of Erroneous Release of Federal Tax Lien.

    1. If the revocation request is for a recorded certificate of release, the requester of the revocation must supply the recording date of the release to complete the revocation. Release recording information is not kept on ALS.

    2. If the revocation request is for a self-released lien, no release recording date is necessary. The recording information for the document is the original NFTL recording information. See IRM 5.12.3.4.1.1, Self-Releasing Lien.

  5. Revocation requests are generally sent to CLO via secure email by Advisory, Insolvency, or Revenue Officers. See IRM 5.12.3.14.1, Requesting Revocation of Lien Release.

  6. Input the revocation to ALS following the instruction in the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals.

  7. Print the revocation document as part of the routine batch processing.

    1. Send one copy of the revocation document to the recording office.

    2. Mail the second copy of the revocation document to the taxpayer.

      Note:

      Although CLO is tasked with mailing the taxpayer's copy, it is the requester's responsibility to ensure this is done.

  8. When the request for a new NFTL is included with the request for the revocation it is imperative that the revocation and new filing be completed in the proper sequence. The revocation must be prepared, recorded with the recording office, and mailed to the taxpayer PRIOR to the new NFTL being filed.

    1. If the revocation document and new NFTL are sent at the same time, ensure that the recording office is made aware that the revocation must be recorded prior to the recording of the new NFTL. A note to the recording office giving this direction should also include the SLID number of both the revocation and the new NFTL.

    2. If the new NFTL is held for later filing, wait at least one week after the revocation before inputting the new NFTL. Preferably, the filing of the revocation is verified before filing the new NFTL

    Caution:

    The revocation document must be both mailed to the taxpayer and recorded at the recording office to re-establish the statutory lien. The statutory lien must be re-established before a new NFTL is filed. Also, a revocation must be filed everywhere the NFTL was originally filed.

  9. Add a history item to ALS to indicate the reason for the revocation.

  10. If it is found that a revocation has been incorrectly input, the revocations can be reversed before the print date by a user with the appropriate permissions utilizing the ALS literal command "revoke." Refer to the ALS User Guide for more instructions.

  11. Requests for revocation must be worked within five (5) business days after the receipt date.

  12. OFP 810-69080 is charged for completing the reversal or revocation of release of liens.

Partial Revocation of Lien Release
  1. There are times when a lien is erroneously or improvidently released but only with respect to some of the persons and/or assessments shown on the NFTL. In these situations, a partial revocation of the release may be needed. Common examples of when a partial revocation is appropriate include the following:

    • The lien for a joint liability is released, but one of the parties still owes the liability.

    • A certificate of release is issued for an NFTL that covers multiple assessments or the NFTL is not refiled timely causing a self-release, but some of the assessments are still owed.

    • The NFTL refile period has passed (i.e., the lien self-released) for some of the assessments on an NFTL that covers multiple assessments, but some of those assessments are still owed.

      Note:

      This scenario includes a tax period with multiple assessments and the self-release affects only one of the assessments.

  2. Partial revocations are requested and processed in a similar manner to full revocations. See IRM 5.19.12.2.7.6above. However, the following exceptions apply.

    • The request must detail who the revocation pertains to and what tax periods or assessments should be included on the revocation.

    • “Partial” must be specified when inputting the revocation to ALS and the taxpayer and/or assessments to include on the revocation document must be selected. See ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals.

    • Because of the way ALS totals the UBA for a tax period with multiple assessments, a revocation request involving just one of the assessments may appear on ALS with a zero amount or blank field. Nevertheless, the request can still be processed.

  3. Partial revocation documents generated by ALS are annotated with wording that identifies the them as partial documents.

  4. As with full revocations, the partial revocation document must be filed and issued to the taxpayer prior to a new NFTL being filed.

  5. For partial revocations, add an ALS history that provides details about the situation.

Manual Revocation Situations
  1. Whenever possible, ALS should be used to generate revocation documents so the lien database shows all lien activity. There are instances, however, when ALS cannot generate and/or print a revocation document and the revocation document must be manually prepared. The following are a few instances when manual preparation is needed.

    • The original NFTL was refiled (in full or in part) prior to being released.

    • The NFTL was filed in multiple locations but was not refiled in all those locations (i.e., the lien self-release of one of the NFTLs extinguished the statutory lien on all NFTLs).

    • A partial certificate of release was issued.

    • The NFTL was partially withdrawn before the release.

  2. The requester is responsible for manually preparing the revocation, but, in certain instances, CLO FORT may be asked to assist with the preparation process.

  3. Blank Forms 12474 are available through the ICS templates or publishing catalog. The form should reflect the SLID from the original NFTL and the recording data from the certificate of release. (For self-released liens, use recording data from the original NFTL.) Complete the remainder of the form to match the certificate of release, with the exceptions noted below.

    1. If the revocation does not apply to all the persons or tax periods shown on the release (or NFTL if self-released), notate the Form 12474 as a Partial Revocation.

    2. If the revocation only applies to one person on a joint liability, input the name line as [Taxpayer A] only, in the matter of [Taxpayer A and Taxpayer B.

    3. List only the assessments for which the lien release is being revoked. Do not include assessments that no longer have a balance due.

    4. If the revocation is for one assessment of a tax period with multiple assessments, show the amount of the assessment on the revocation document as either the UBA for the tax period (as shown on the original NFTL) or the amount of the specific assessment.

    5. For partial revocations, insert a paragraph in the body of the form to describe the revocation situation.

      Example:

      *PARTIAL REVOCATION. The release of Federal tax lien is revoked only as it relates to [Taxpayer A], in the tax liability of [Taxpayer A and Taxpayer B]. The lien is released with respect to [Taxpayer B].

      Example:

      *PARTIAL REVOCATION. The release of Federal tax lien is revoked only as it relates to the tax liabilities listed in this revocation. The lien is released for all other tax liabilities shown on the Certificate of Release.

  4. Input a history item into ALS about the revocation.

  5. Manually prepared revocations can be mailed to the recording office following standard procedures.

NFTL Withdrawal

  1. Once a Notice of Federal Tax Lien is filed, the lien can only be released when the liability is satisfied, the liability is no longer enforceable, or a bond has been accepted for the payment of the liability. In certain situations it may be appropriate for the IRS to withdraw the Notice of Federal Tax Lien while the taxpayer still owes the liability. See IRM 5.12.9, Withdrawal of Notice of Federal Tax Lien, for further details.

    Note:

    Information about withdrawing an NFTL after the lien has been released is found in IRM 5.19.12.2.8.3, Withdrawal of NFTL After Lien Release.

  2. A Withdrawal of the NFTL differs from a Certificate of Release of Federal Tax Lien and the two cannot be used for one another. A Withdrawal only removes the effect of the NFTL whereas the Certificate of Release invalidates the NFTL and extinguishes the statutory tax lien.

  3. Advisory and Insolvency Managers have general approval authority for a withdrawal of an NFTL, but other positions also have limited authority to approve withdrawals as described in IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates.

  4. Most withdrawal requests are processed through Advisory. Insolvency primarily works withdrawals involving active bankruptcy cases. Both offices send approved withdrawal requests to CLO for processing actions or input the requests directly to ALS, if permissions allows. Withdrawal requests are generally submitted on Form 13794-W, Request for Withdrawal or Partial Withdrawal of Notice of Federal Tax Lien.

    Note:

    Requests from Appeals usually come through Advisory because Appeals does not have TSIGNs. Do not use generic TSIGNs for requests from Appeals.

  5. Upon receipt of an approved withdrawal request, check ALS to ensure the NFTL has recording information. CRD must be on the NFTL before a withdrawal can be input to ALS.

  6. If no CRD is on the NFTL, use an available research tool to locate the recording information and update ALS accordingly. If no recording information is found, follow the steps below.

    1. Notify the requester there is no CRD on ALS and none was found through research.

    2. Ask the requester to find the CRD and resubmit the request.

    3. Close case along with all documentation.

    4. Input a history in ALS about the situation.

      Note:

      During the research process, if you find there is no NFTL filed, notify the requester and follow the Potential Lost Lien procedures. See IRM 5.19.12.9.5, Potential Lost NFTLs.

  7. Once CRD is on the NFTL, input the withdrawal on ALS following the instructions found in the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals. Input a history in ALS of the withdrawal request.

    Note:

    In rare situations where the NFTL is not on ALS and the lien has not been released, the NFTL must be added through the SCREATE process before the withdrawal can be input.

  8. Withdrawals input to ALS go to the manager's approval queue. The Team Manager daily approves the withdrawals in the queue.

  9. Generally, the TC 360 NFTL filing fee is not reversed when the NFTL is withdrawn. When it is appropriate, the office authorizing the withdrawal is responsible for reversing the TC 360.

  10. Form 10916, Withdrawal of Filed Notice of Federal Tax Lien, is printed and mailed for recording with other lien documents. The taxpayer's copy of Form 10916 is printed and mailed to the taxpayer from CPS.

  11. If the requesting office asks for a copy of the Form 10916, make a copy of the document when printed or, after the withdrawal is approved on ALS, generate a copy using PRNT668. If the recording office has electronic filing (ELF), print the facsimile after creating the withdrawal. Scan the copy of the withdrawal document and send it to the requester by secure email.

  12. On occasion, the withdrawal document may be manually prepared in the field and issued directly to the taxpayer for recordation. In these situations, a copy of the withdrawal document should be provided to CLO for input to ALS. Follow usual input procedures except as noted below.

    1. Suppress the printing of the withdrawal document.

    2. Suppress the document from appearing on the BSV.

    3. Indicate that the withdrawal was already issued and input the applicable data.

  13. NFTL withdrawal requests must be worked within five (5) business days after the date of receipt in CLO.

  14. OFP 810-69080 is charged for completing NFTL withdrawals.

Partial NFTL Withdrawals
  1. Situations may arise where the NFTL lists multiple persons but it is appropriate to withdraw the NFTL only as it relates to one person. Also, but in unusual circumstances, there may be situations where the NFTL lists multiple tax periods but it is appropriate to withdraw the NFTL only as it relates to certain tax periods. In these situations a partial withdrawal may be issued. See IRM 5.12.9.7, Partial Withdrawal, for additional details.

  2. Those authorized under Delegation Order 5-4 to approve withdrawals can also approve partial withdrawals. Generally, the approved partial withdrawal requests come from Advisory or Insolvency to CLO for processing actions.

  3. Follow the instructions in IRM 5.19.12.2.8 above for processing the withdrawal request.

  4. Input the partial withdrawal on ALS following the instructions found in the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals. Input a history in ALS about the partial withdrawal request.

  5. Do not reverse the TC 360. There is no abatement of NFTL filing fees for partial withdrawals.

  6. Partial NFTL withdrawals must be worked within five (5) business days after the receipt date in CLO.

  7. OFP 810-69080 is charged for completing the partial NFTL withdrawals

Misdirected Withdrawal Requests
  1. Requests for NFTL withdrawal are submitted in writing, generally on Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.

  2. In the event a request for a withdrawal is received from a taxpayer for an NFTL and the lien has not been released, check IDRS to determine the status of the account. Refer the request following the table below.

    Status Refer to...
    26 Assigned RO
    72
    with TC 520 cc 60-67, 81, or 83-89
    Centralized Insolvency Operation
    All other statuses Advisory Consolidated Receipt
  3. Prepare a Correspondex Letter 3645C, Case Processing Liens, for the taxpayer to explain that the request has been referred. Refer to IRM 2.11.1, IDRS Correspondence, for creating a correspondex letter.

  4. Input a history of the action taken on ALS or AMS, if not on ALS.

  5. If the request is received from an IRS employee not authorized to approve withdrawals, reject the request back to the requester and explain that the request must go through Advisory or Insolvency.

Withdrawal of NFTL After Lien Release
  1. Taxpayers may request a withdrawal of the NFTL after the lien has been released. The policy regarding withdrawals after lien release (WDARs) is found in IRM 5.12.9.9, Requests for NFTL Withdrawal After Lien Release.

  2. CLO Managers have the authority to approve WDARs, except for situations where the lien has self-released. See IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates.

  3. Generally, WDAR requests are worked by Advisory and requests received in CLO should be referred to the Advisory Consolidated Receipt site. When needed, CLO can process WDAR requests submitted under IRC 6323(j)(1)(D), best interest of the taxpayer and the government, and a certificate of release was issued.

  4. For WDAR requests that are worked in CLO, follow the steps below.

    1. Review ALS to determine the status of the NFTL and whether a certificate of release was issued.

    2. Research IDRS to determine how the liability was satisfied and whether the taxpayer is in filing compliance.

    3. Request additional information from the taxpayer as needed.

  5. Make a determination on the WDAR request following the guidance found in IRM 5.12.9.9.

    1. If the conditions for withdrawal are met, input the withdrawal to ALS following standard input procedures. Form 10916-A, Withdrawal of Filed Notice of Federal Tax Lien after Release, and Letter 3044, Withdrawal After Notice of Lien Release, will systemically generate.

    2. If the conditions for withdrawal are not met, prepare and issue Letter 4711, Withdrawal Decision, to deny the request.

      Note:

      Determinations to withdraw the NFTL or deny the request must be approved by the Team Manager prior to generation of documents.

  6. In situations where a request is received for an NFTL no longer on ALS, additional manual processing may be necessary. See IRM 5.12.9.9.2, Withdrawal Requests for NFTLs No Longer on ALS. DO NOT SCREATE a released NFTL on ALS for the sole purpose of withdrawing it.

  7. WDAR requests should be reviewed within thirty (30) calendar days after receipt of a complete application in CLO (e.g., Form 12277 with all information). If the request cannot be reviewed in that time frame, send an interim letter to the applicant advising of the status.

  8. Use OFP 810-69170 when working withdrawal requests.

Certificate of Non-Attachment

  1. Certificates of Non-Attachment (CNA) are not notices of lien. They are certificates created when a third party contacts the IRS for documentation that explains the NFTL does not affect their property. Most often this occurs when the third party and the taxpayer have a similar name.

  2. These certificates are generally prepared and submitted by Advisory. These documents are not loaded to ALS, but are filed with documents that are created on ALS.

  3. Upon receipt of a CNA, compute the filing fees and add it to the BSV. File the CNA with the recording office following the same procedures as filing an NFTL that is not on ALS.

Document Printing

  1. Lien documents, including NFTLs, releases, withdrawals and revocations, are routinely printed on Tuesdays and Thursdays only.

    Note:

    There are times when the documents are printed outside of this parameter (e.g., a holiday falls on a print date, a disaster prevents sending NFTLs to the designated location). In these instances management provides guidance for alternative processing.

  2. NFTLs printed on days other than Tuesdays and Thursdays can cause a delay in the issuance of the CDP notice, resulting in the five (5) day time frame not being met.

  3. Printing and mailing of the lien documents starts the day after the "668Y" and "668Z" listings are completed and the billing support voucher is reviewed for additions and subtractions. All printing and mailing must be completed within three (3) business days.

  4. All documents should be printed on Tuesday or Thursday. This would also be the day all ELF liens are approved.

    Note:

    Managerial approval of the ELF liens is equivalent to printing of the liens and will trigger the CDP generation. The managerial approval must be done on Tuesday and Thursday to ensure CDP notices are timely printed and mailed.

  5. The printed documents are packaged and mailed the following day (Wednesday and Friday). The upload of the ELF files from ALS to the respective recording office should only be done on Wednesday and Friday.

  6. Ensure that all recording offices within the same voucher are mailed at the same time. This has impact to the date input to the voucher program.

  7. ALS uploads information about the lien documents to Master File. The TCs 582, 583, 360, and 971 AC 252 postings are directly related to the document creation and printing process.

    • The TCs 582 and 583 are triggered by the Billing Support Voucher (BSV), The date of the TC 582/583 is based on the creation date of the lien document; however, the ALS extract to upload the TC 582/583 is based on the standard BSV date range. If the creation date of the document falls outside the standard BSV date range, the TC 582/583 is not automatically included in the extract to Master File.

    • The TC 971 AC 252 is triggered by the printing of the NFTL. The date of the TC 971 is based on when the NFTL is printed. The ALS extract to upload the TC 971 captures all the NFTLs printed within a given range. The TC 971 is uploaded to Master File in the same file as the TC 582/583, but it is processed and posted separately.

    • The TC 360 is triggered by the BSV and processed similarly to the TC 582/583; however, it uploads and processes separately.

    Example:

    An NFTL was created on March 2, included in the BSV built on March 4, and printed on March 5. The TCs related to this NFTL were delivered to Master File on March 6. If the same NFTL was not included in the print batch of March 5, but rather printed on March 12, the TC 971 AC 252 would have been transmitted to Master File but the TC 582 and TC 360 would not have been transmitted because the NFTL creation date was outside the standard BSV date range.

  8. Use OFP 790-69010 to report time spent reviewing and editing the BSV and working the 668Y and 668Z listings.

SPOOL and SPOOL.OLD

  1. The print spool contains lien-related documents to be printed.

  2. There are two print spools found on ALS. On the ALS print menu they are identified as SPOOL and SPOOL.OLD.

    • "SPOOL" is the active spool or queue and contains lien documents waiting to be printed.

    • "SPOOL.OLD" is the back-up spool or queue and contains lien documents and reports that have already been printed.

  3. Review of the active spool queue should be completed after each printing to ensure all documents are printed that correspond to the range of dates being worked.

  4. ALS reports are located in the Reports file on the print menu.

  5. Once documents are printed, they move from the spool to the spool.old.. Documents are retrievable from spool.old for 17 days. Refer to the ALS User Guide, Chapter 12, Printing Documents, for more information.

Billing Support Voucher

  1. A Billing Support Voucher (BSV or "voucher" ) is a document generated through ALS that identifies all the lien documents being sent to a specific recording office and the amount being paid for the filing of those documents. A BSV is used as an accounting tool and also to document when lien documents are filed.

  2. ALS assigns each new BSV a unique number consisting of a voucher number, account number and payment type identifier. The number will appear on the generated BSV and can be used to locate the BSV for editing.

  3. The BSV number is made up of three parts.

    • The recording office (court) ID number that is assigned in the ALS Court Table.

    • The voucher number, which is generated sequentially and used for all vouchers within the state (unless one specific recording office BSV is being built).

    • The payment type identifier, which will usually be "E" indicating the recording office is paid by electronic funds transfer from the Integrated Financial System (IFS). Other identifiers less commonly used are "I" for recording offices that receive a paper check and "B" those operating on a billing process.

    Example:

    In the BSV number 330032-10 E, the 330032 represents the recording office id, 10 represents the voucher number, and the E shows the payment is made through IFS.

  4. With the implementation of the Financial Management Service Debt Management Services to collect delinquent debts owned to federal agencies, the Integrated Financial System (IFS) was implemented to interface with ALS for payment of recording fees.

    Note:

    Due to special circumstances, there are a few recording offices that still receive payment by paper check instead of by electronic fund transfer (EFT). These checks are processed outside of CLO.

  5. A BSV is built for the range of dates of the documents being filed.

    BSV built for printing on... Covers the documents generated from...
    Tuesday Previous Wednesday through Saturday
    Thursday Sunday through Tuesday
  6. The voucher that is stored in ALS should reflect the voucher as it was prepared for the recording office, less any manual additions or corrections made.

  7. Periodically, due to fee changes or rejections, adjustments to the BSV are needed to correct payment to the recording office. These adjustments will be completed by the Team Lead or Manager using ALS voucher program before the documents for recording are printed.

  8. After transmitting the BSV and documents, CLO may be notified by the recording office that an overpayment or underpayment of fees has occurred. This notification may result in the rejection of the lien documents by the recording office. CLO should attempt to resolve the discrepancy (e.g., explain the Treasury Offset Program (TOP)), but may need to refer the recording office to Accounts Payable Financial Operations (a unit at the Beckley Finance Center). See IRM 5.19.12.7.4, Recording Offices.

  9. CLO will retain either a paper copy of the BSV or a scanned copy. This copy should be an accurate reflection of the original and/or adjusted BSV.

  10. To verify timeliness of release to the taxpayer, CLO will maintain the paper date-stamped BSV in a manner similar to the maintenance of the postal stamped Form 3877 and Registered Listings.

  11. Retain paper BSV’s on site for one (1) year then forward to the Federal Records Center.

ALS 668Y and 668Z Listings

  1. The ALS Voucher program provides two listings that are generated prior to building the BSV. These listings, called 668Y and 668Z, are used to determine the documents and/or data that need clarification before printing.

  2. The 668Y listing shows NFTLs (or refiles) created on ALS with a prepared date in the BSV date range that are not in the print queue. Documents are missing from the print queue when the "on voucher" or "store only" option was selected when the request was input in ALS. This most often occurs when the NFTL was hand-carried to the recording office or the NFTL is printed outside the date range.

    Reminder:

    Do not print an NFTL before the designated print time. See IRM 5.19.12.3, Document Printing. An NFTL that is being hand-carried for filing should be manually prepared by the requester using an available template.

  3. The 668Z listing shows documents (e.g., releases, withdrawals, revocations) targeted for placement on a BSV that are missing information such as recording data.

  4. Generate the 668Y and 668Z listings on Monday or Wednesday prior to the printing and mailing of the BSV. Once generated, the reports can be located in each area’s reports print queue. Some listings are run overnight in CRON and are placed in the area’s reports print queue on Monday and Wednesday, so they do not need to be generated. The largest of the CRON reports are as follows:

    • California (CA)

    • Connecticut (CT)

    • Florida (FL)

    • Illinois (IL)

    • New Jersey (NJ)

    • New York (NY)

    • Pennsylvania (PA)

    • Texas (TX)

    Note:

    See the ALS User Guide, Chapter 11, Billing Voucher, Listings and Lien Documents, for instructions on generating the listings.

  5. Use the information on the listing to research documents that need clarification or correction and determine appropriate action. Listings generated on Monday must be resolved before printing the documents on Tuesday; the listings generated on Wednesday must be resolved before printing the documents on Thursday.

Resolving the 668Y Listing
  1. To resolve NFTLs showing on the 668Y listing, research ALS for history information to determine what data the NFTL may be missing. Take appropriate corrective actions, as needed.

  2. Input an ALS voucher history if adding the document to the voucher.

Resolving the 668Z Listing
  1. In the "HOW" column, the 668Z listing indicates a reason the lien document was identified for research. The primary reasons are "No Recd" , which means there is no recording data on ALS for the original NFTL, and "Missing" , which indicates the lien document was prepared but is not in the print file.

  2. When the reason shown is "No Recd" , research for recording data using the best method of research for the recording office, including, as necessary and appropriate, contacting the recording office. Based on the research, take action as described in the following table.

    If... Then...
    Recording data is located Input the CRD on ALS.
    Recording data cannot be located and it has been 90 days since the NFTL was filed Follow the Potential Lost lien (PLL) procedures in IRM 5.19.12.9.5, Potential Lost NFTLs. The ALS history should reference that the NFTL was never filed and was removed.
    The recording office has the NFTL but has not filed it yet Explain to the recording office the importance of timely filing IRS documents and continue to monitor case until the CRD is received.
    The recording office did not receive the NFTL Follow the Potential Lost lien (PLL) procedures in IRM 5.19.12.9.5, Potential Lost NFTLs. DO NOT RESEND THE ORIGINAL NFTL.
  3. When the reason shown is "Missing" , research ALS history for information on the situation.

    1. If verified that the lien document was hand carried, remove the SLID from the BSV.

    2. If unable to determine whether the lien document was hand carried, take corrective action so the document can be printed and filed.

  4. Notate the paper listing with the actions taken and your name or ID Number. Also, input an ALS history indicating that the Z listing was worked and actions taken.

BSV Review
  1. BSVs and related documents should not be printed outside of the normal processing on Tuesday and Thursday. BSVs should be reviewed on Mondays and Wednesdays on ALS before printing to ensure completeness and accuracy.

    Note:

    Normal processing days may occasionally be altered by holidays or other significant events.

  2. Prior to printing, review the BSV to identify the following situations and to take necessary corrective action.

    BSV problem Corrective action
    A Not To Be Filed lien record (NTBFL) printed. (These are for internal use only to alert of an action to be taken.) Take corrective action based on the ALS history. DO NOT FILE A NTBFL OR A RELEASE OF A NTBFL See IRM 5.19.12.2.3.3, Not To Be Filed Lien Record, for further guidance.
    An NFTL on an individual taxpayer is filed with Secretary of State inappropriately. Remove the NFTL from the BSV and notify the requester of the removal and why it was removed. Submit a request to the Manager or Lead to remove the NFTL from ALS.
    Paper documents generated for ELF recording offices (unless the document must be sent by paper, such as an amended NFTL). Change the recording office to reflect the ELF recording office and add to the BSV. Ensure the document is approved in the ELF approval queue. Remove from the paper court voucher as applicable. See IRM 5.19.12.12, Electronic Lien Filings (ELF), for further guidance.
    Property designations on NFTLs such as "Real Property" and "Personal Property." (These designations should no longer appear on NFTLs as they are no longer filed in "Personal Property" courts.) Edit the BSV and remove the NFTL from ALS. Notify the requester that NFTLs for this recording office are no longer an option for filing. (Releases for Real and Personal Property courts are filed. The release must match the NFTL as filed including the court.)
    Recording fees are not appropriate, according to the recording office. Verify the fees and edit the fee tables or the BSV accordingly.
  3. Lien documents that were manually prepared may need added to the BSV. Check the team’s "Add/Delete Basket" for any of these documents, including:

    • Special Condition NFTL

    • MCAR NFTL

    • Partial release

    • Partial revocation

    Reminder:

    While any lien document can be manually prepared, manual preparation generally should be reserved for those documents that cannot be generated through ALS or require expedited processing.

  4. Manually prepared lien documents that are hand-carried by an RO to the recording office should not be included on the BSV. The RO is normally responsible for paying the associated recording fees. See IRM 5.12.7.10.5, Hand-Carried NFTL for Filing.

  5. Any request to add estate tax liens to a voucher should be hand carried to the FORT.

  6. Take all actions to update the BSV to reflect changes identified for the 668Y and 668Z listings and add/pull any inappropriate documents before printing the BSV. Inform your Manager when complete resolution of the listings cannot be reached or when a release has been removed from the BSV.

  7. Ensure that you refer to the range of dates listed on the BSV and print all documents for each day. Refer to the ALS User Guide, Chapter 11, Billing Voucher, Listings and Lien Documents, for specific instructions.

Editing the Billing Support Voucher

  1. BSVs can be researched by invoice number and specific recording office or by a specific SLID.

  2. Editing can be done to change a standard fee or to add or delete a particular document from the voucher. See IRM 5.19.12.5, Recording Fees.

  3. History items pertaining to any editing of a particular BSV are stored separately from NFTL history. This history becomes part of the voucher history.

  4. Review and editing of the voucher to correct fees and add or delete documents must be done before documents are printed.

  5. When adding a partial release to a voucher use the SLID of the original NFTL. DO NOT use the SLID of the Spec Doc.

    Note:

    If you input the Spec Doc SLID, this will cause the system to jam during the printing process and will delay lien processing.

  6. If there are two partial releases on the same NFTL, only the last partial release will be produced. When this occurs, manually add the second partial release to the voucher without the input of the SLID number. Input a history to ALS voucher identifying the recording office and reason for adding.

Printing and Mailing Documents for Recordation

  1. Lien documents are batched by ALS for printing. Document batches are ready for printing after all the following have occurred:

    • The BSV is updated as needed;

    • All additions to the print batch have been inserted; and

    • All documents identified to be removed, have been removed.

  2. Follow instructions in the ALS User Guide, Chapter 12, Printing Documents, for printing the document batch. After all documents have been printed, reviewed, and any corrective actions taken, associate the appropriate voucher and prepare for shipment to the recording office.

  3. Once packages are complete, ensure all recording offices with the same voucher number are together. Ensure the address of the recording office is visible and correct. If incorrect, update as necessary and notify the ALS coordinator so that ALS can be updated.

  4. Carry the package to the clerical team, which will take the packages to Receipt and Control for mailing.

  5. Date stamp the copy of the BSV and file in a designated area by county. This is usually done by the CLO clerical team.

    Note:

    The date stamps are in a locked, secured area and must be signed out when used.

Input of Date Stamp and Pay Certification on ALS
  1. Once the documents are mailed to the recorder, a date must be input to the ALS voucher program to indicate the mail out date. Also, a payment certification must be entered to generate the payment file for processing by Accounts Payable Financial Operations at the Beckley Finance Center .

  2. Enter the date stamp from the file copy of the BSV into ALS before 11:00 A.M. (EST/EDT). See the ALS User Guide, Chapter 11, Billing Voucher, Listings and Lien Documents, for instructions.

  3. When entering the date stamp, ALS prompts the user for payment certification. This must also be entered into ALS before 11:00 A.M. (EST/EDT) to ensure the electronic payment is received timely. See the ALS User Guide for instructions.

    Note:

    Due to time constraints, day shift teams input the date stamp and pay certification for the swing shift team.

  4. The Team Manager/Lead reviews the date stamp report to ensure all vouchers were date stamped timely and accurately. The Manager signs and dates the report, which is stored by the team.

    1. If there is a missing or late entry on the report, the FORT must be notified immediately.

  5. For electronic filing recording offices, the file transmission date is the date used for the date stamp. IRM 5.19.12.12, Electronic Lien Filings (ELF), for information on ELF.

  6. Unless unusual circumstances exist, all documents with the same voucher number within the state should be mailed the same day. Due to some recording offices requiring payment before the documents are recorded, the mailing package may be held by CLO so the payment reaches the recording office first.

Returned Documents from Recording Offices

  1. Recording offices return certain lien documents after they have been recorded. Sometimes, and for a variety of reasons, they return documents without recording them. These are also known as rejects. Processing the returned documents depends on whether they were recorded prior to their return.

  2. SPECIAL NOTE: Although often used interchangeably, there is a legal distinction between "filing" and "recording" a document. This distinction becomes crucial when a recording office has not processed the lien documents and there is a dispute regarding lien priority or compliance with filing requirements. Generally speaking:

    • The IRS files lien documents by delivering them to the recording office. (Delivery may be done by mail, in person, or electronically.)

    • The recording office records the lien documents when they are entered into the public record.

    • Some states also require the "indexing" of the lien documents to complete the process.

      Note:

      See IRM 5.17.2.3.1, Purpose and Effect of Filing Notice, for more information.

Recorded Documents

  1. The IRS requests that recording offices return NFTLs, amended NFTLs, and refiles after the documents are recorded so that recording data can be input to ALS. The IRS does not request the return of other lien documents (e.g., releases and withdrawals) after recordation, but some recording offices might return them. Recording data for these other documents is not input to ALS.

    Note:

    ALS does allow for the recording date for revocations of release following a different process. The recording date for any revocations returned from the recording office should be input to ALS.

  2. The priority of the federal tax lien is often based on the filing date of the NFTL. It is crucial that recording data is input accurately and timely. Also, incorrect data can impact the future release of the lien.

  3. When recorded documents are received back from the recording office review them to ensure all documents in the batch have recording information. Also, check the batch for the following:

    • Duplicate NFTL filings, e.g., the recording office filed both parts 1 and 2 of the NFTL (IRM 5.19.12.2.4, Duplicate Filings of NFTL)

    • NTBFLs that should not have been filed (IRM 5.19.12.2.3.3, Not to Be Filed Lien Record)

    • Information to indicate rejected documents

    • Checks for overpayment of recording fees

      Note:

      If a refund check is included, follow discovered remittance procedures in IRM 5.19.12.4.2, Unrecorded Documents.

    • Information regarding changes in recording fees or general information from the recording office

      Note:

      Change information must be forwarded to the Team Manager and as an ALS Referral to the FORT for verification and input.

  4. Recording information is input to ALS through the COURT screen. See IRM 5.19.12.4.1.1 below.

    1. If the document is a MCAR NFTL or release, send the document to its originator using a Form 3210. These types of documents are not loaded or controlled on ALS.

    2. If document is for estate tax or a release, send the document to the FORT. See IRM 5.19.12.2.5.1, NFTLs for Estates, for information on processing estate tax liens.

  5. Recording information must be input into ALS within ten (10) business days after receipt of the lien document from the recording office.

Court Recording Information
  1. The court recording data (CRD) on returned documents will vary in the data provided and the way it is provided. Most often the CRD is on the lien document, but some recording offices may list the CRD on the voucher or a separate spreadsheet. If the data returned is not understandable, use available research tools to resolve including, if needed, contacting the recording office.

  2. Some recording offices only use recording numbers, some use book and page numbers, some use serial or UCC numbers, and some use a combination of the above. The clock time when the document was filed is not used by ALS and inputting it is not necessary.

  3. The COURT input data screen on ALS can be set to go directly to the fields that are required by the specific recording office. This is referred to as the "Court Recording Window Flow." See the ALS User Guide, Chapter 7, Input Court Data, for the combinations available for set up.

    1. If a change to the required fields is identified, forward the information to the ALS Coordinator through your Manager or Lead. Provide the name of the recording office and what fields the recording office uses.

    2. If combinations not listed in the ALS User Guide are identified, explain this on the request to the ALS coordinator. The ALS coordinator may be able to arrange an additional combination with the ALS programming staff.

      Note:

      Prior to requesting an additional combination, be sure to verify the field is required information by the recording office.

  4. Input the CRD for each lien document. See the ALS User Guide for instruction. Verify the data is input to the correct SLID and is entered correctly.

    Note:

    Incorrect data can cause future documents, such as a release of lien, to be rejected by the recording office.

  5. If there is not sufficient space in ALS to enter the full recording number supplied by the recording office, drop the first two (2) digits of the year and use the rest of the data (e.g. "2019098765" would be "19098765" ). If not previously done, also take the actions below.

    1. Contact the recording office to ensure this will not cause future, related documents to be rejected. If no resolution is met, refer to FORT.

    2. Put a history on MAINTXC of the agreement.

  6. When inputting recording information and it is discovered that the lien document already has recording information, verify the SLID and the recording office on the document are the same as on ALS. Conduct additional research as needed to determine if this is a duplicate filing. If it is a duplicate, see IRM 5.19.12.2.4, Duplicate Filings of NFTL, for further guidance.

  7. Once all of the data is input to ALS, verify that all lien documents were recorded by reviewing the associated voucher on the ALS voucher program. Refer to the ALS User Guide for more information.

    1. If the documents were returned without a BSV attached, find the voucher number by researching one of the SLIDs in the batch on ALS COURT screen.

  8. Verify that all documents on the BSV have been recorded by checking the recorded document indicator on the first page of the voucher. If the voucher program does not show all lien documents as recorded, take the additional steps as needed.

    1. Check the voucher for the SLID that does not show up as recorded.

    2. Verify the lien document was sent with the voucher.

    3. Check if the document was an estate or MCAR NFTL, a non-attachment, or any other document that was added to the BSV without a SLID.

  9. When a discrepancy is discovered or not all lien documents were returned, contact the recording office to determine why the recording information was not returned. Input a history of your findings on the voucher program.

    Reminder:

    When inputting a history to the voucher program, identify the recording office impacted by the history. The voucher number is for all recording offices within the state.

  10. Recording information must be input to ALS within ten (10) days after receipt of the document.

  11. Use OFP 790-69030 for time spent inputting recording information and OFP 790-69040 for sorting and reviewing incoming documents.

Unrecorded Documents

  1. Recording offices might return (or reject) documents that are unrecorded for various reasons including, but not limited to, the following:

    • Incorrect fees paid, e.g., a batch of lien documents is sent to a recording office with an amount that is not consistent with the fee schedule for the recording office

    • Overpayment of fees, e.g., the recording office receives a payment larger than is needed

    • Release or withdrawal documents filed with missing or incorrect recording information

    • Documents were sent to the wrong recording office

  2. Lien documents might be rejected in whole batches or individually, based on the recording office and the reason for the rejection. The ALS voucher program will be used for tracking of rejected lien batches and individual documents that are rejected. Refer to the ALS User Guide, Chapter 11, Billing Voucher, Listings and Lien Documents, for information on how to use this tool in the voucher program.

  3. When document(s) are returned as unrecorded, research the situation and take corrective action as needed. These actions may include, but are not limited to, the following:

    • Correcting the fees and/or forwarding an updated schedule of fees to the ALS Coordinator.

    • Processing an overpayment following IRM 5.19.12.5.1, Refund Received from Recording Offices.

    • Researching and correcting CRD in ALS.

    • Updating filing location information.

  4. Input a history on the voucher on ALS for the rejected documents. The history should include the recording office ID number, state the voucher was rejected, and specify the reason for the rejection. If specific documents from a batch were rejected, the history should also include the SLIDs.

  5. Return the corrected document(s) to the recording office. If rejected due to an IRS error, send apology letter with returned documents. See Exhibit 5.19.12-5, Sample Letter to Recording Office on Rejected Lien Documents.

  6. Whenever possible, use the same voucher to re-send the documents to the recording office. A written history must be placed on the file copy of the voucher. It must include name, actions taken, and date closed along with a new date stamp showing the date it was mailed. If using the same voucher is not possible, use a different voucher.

    1. If only specific documents were returned unrecorded, add the corrected documents to the next voucher that will be going to the recording office.

    2. If no voucher is going out on the next processing day, generate a new voucher for the documents.

  7. Rejected lien documents should be tracked from the time of receipt until resolution is made. All actions taken should be notated on a reject log spreadsheet. The Manager or Lead should check and initial the spreadsheet, thus verifying all information is correct and all inclusive. If the reject cannot be resolved at team level, the case should be referred to FORT for resolution.

    Note:

    If the documents returned with the rejected voucher have been recorded, these documents are not rejected and should not be counted as such.

  8. Resolution should be completed within five (5) business days after receipt in CLO, this corresponds with the number of days to process lien document batches. See IRM 5.19.12.3, Document Printing.

  9. Copies of the rejected vouchers and supporting documentation are retained for periodic review and analysis.

  10. For time spent working unrecorded documents, use OFP 810-69150.

Recording Fees

  1. Most recording offices charge a fee for recording documents. The amount charged varies by recording office. The amount also varies by the type of document being recorded.

  2. Periodically recording offices change their fee schedule. When notification is received from a recording office on fee changes, immediately forward the information to the Manager or Lead of the team responsible for filing with the recording office. If the notification is received through a phone call, complete a Team to Team referral and an ALS Coordinator form and forward to the appropriate team.

  3. Once the appropriate team receives the change information, the actions below should be taken.

    1. Verify the request is not a previous action.

    2. Inform the team of the fee changes immediately so any pending vouchers can be adjusted.

    3. Notify the ALS Coordinator to update the recording office fees on ALS.

Refund Received from Recording Office

  1. It is important that fee schedules are kept up-to-date and that vouchers properly reflect the documents being filed so that the amount paid to the recording office in association with the filings is accurate. At times, normally because of rejected documents, the amount paid may exceed the amount due. Often this overpayment is resolved with adjustments in future vouchers, but occasionally a recording office will refund the overpaid amount to CLO.

  2. Generally a recording office refunds overpayment in the form of a check; however, it might return cash.

    1. If a recording office returns cash as a refund of fees paid to them and the cash is in excess of $1.00, obtain a money order made payable to "U. S. Treasury" . Use part of the cash returned for the money order fee.

    2. If a recording office returns cash as a refund of fees paid to them and the cash is $1.00 or less, no money order is needed.

  3. Complete a Form 3210 indicating the proper fiscal year commitment funding code and, if known, the BSV number associated with the overpayment. Include a copy of the money order receipt, if applicable.

  4. Mail the Form 3210 with the check, money order, or cash (if less than $1.00) to the Accounts Payable Financial Operations (at the Beckley Finance Center) via the Receipt and Control Section.

  5. Notate the BSV, if known, that a check was returned and update the ALS voucher history. In the notation include the following information:

    • Your name

    • The amount of the refund

    • Check number or type of refunds (e.g., cash, money order, etc.)

    • Reason for the return, if one is given

    • The date

Collection Due Process

  1. IRC 6320 requires the IRS to provide taxpayers with notification when an NFTL is filed. If it is the first time an NFTL has been filed for the tax period, the notice provides the taxpayer with information regarding their right to a hearing and the amount of the assessed balance. This notice is known as a Collection Due Process (CDP) notice. The CDP notice advises the taxpayer that they have 30 days to request a hearing on the filing of the NFTL. The notice also provides the taxpayer with information on how to obtain a certificate of release and contact information for questions. See IRM 5.12.6, Appeals Processes Involving Liens, for additional information on CDP notices for NFTLs.

  2. To comply with IRC 6320, Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320, is provided to the taxpayer by certified mail, registered mail, or in person. The following documents are sent with the Letter 3172:

    • A copy of Form 668(Y)(c), Notice of Federal Tax Lien (If filing in an electronic recording office, a facsimile copy of the NFTL is sent)

    • Publication 594, The IRS Collection Process

    • Publication 1450, Instructions for Requesting a Certificate of Release of Federal Tax Lien

    • Publication 1660, Collection Appeal Rights

    • Form 12153, Request for a Collection Due Process or Equivalent Hearing

  3. Normally, the process of generating CDP notices begins when the Billing Support Vouchers (BSV) are printed from ALS to transmit the NFTLs to the recording offices (or when NFTLs for electronic filing locations are approved). The day after the NFTLs are printed, the CDP notices are generated and forwarded to Correspondence Production Services (CPS), which prints and mails the notices in accordance with legal requirements.

  4. ALS calculates the taxpayer's 30-day response due date for the CDP notice.

    1. The Letter 3172 must be mailed within five (5) business days after the NFTL is filed. For purposes of this calculation, the NFTL is considered filed on the date it should be received by the recording office.

    2. The Service calculates an estimated filing date by adding three (3) business days to the NFTL mailing date.

    3. The taxpayer's response due date on the letter is determined by adding five (5) business days plus 30 calendar days to the estimated filing date.

      Example:

      An NFTL is mailed April 3, 2020. The CDP notice must be mailed by April 15, 2020 (i.e. April 3 plus three (3) business days plus five (5) business days). The taxpayer's response due date is May 15, 2020 (i.e. 30 days later).

  5. CPS receives a file from ALS each Wednesday and Friday night which contains data for CDP notices. These notices are printed and assembled with the appropriate publications and mailed by certified or registered mail to the taxpayers and co-obligors. The generation, printing, and mailing of the notices follows an established schedule to adhere to the five-day requirement for notification as stipulated in IRC 6320. See IRM 5.12.6.3, Collection Due Process for NFTL Filing, for further details.

Certified and Registered U. S. Postal Listings

  1. Certified and registered mail listings are generated to show all the notices that were mailed on a specific date. The listings show a United States Postal Service (USPS) date stamp to indicate that CDP notices were mailed and provide documentation that the IRS complied with the notification requirements of IRC 6320.

  2. CDP notices mailed to an address within the United States; U.S. territories of Guam, Puerto Rico, Virgin Islands, and Saipan; and APO/FPO addresses are mailed certified. ALS produces U. S. Postal Form 3877 along with the taxpayer notice in a file sent to the CPS. The Form 3877 lists the certified mail number and the name and address of the receiving taxpayer.

  3. CDP notices mailed to foreign country addresses are mailed registered. ALS produces a Registered Mail Listing along with the CDP Notice

  4. Once CPS prints and mails the taxpayer notices, the certified and registered mail listings are stamped by the USPS with the date of mailing and forwarded to CLO for record keeping.

  5. Copies of the weekly certified and monthly registered listings can be found on Control D. These copies are used to monitor for receipt of the USPS date-stamped listings. If the date-stamped listing is not received within 14 calendar days from the date of the listings, contact the print site to secure the date-stamped copy.

  6. When the date-stamped listing is received, verify that each page is date-stamped with a legible USPS date stamp and no pages are missing. Contact the print site to secure missing or illegible pages.

  7. After verification that all pages are received, scan the listings to appropriate storage media (e.g., DVD, flash drive, portable hard drive). Use separate media for certified and registered listings.

  8. Review the media to ensure the following:

    • All pages have been scanned.

    • The USPS date stamp is legible.

    • The media is searchable.

  9. Label the media by content (Registered or Certified Form 3877), month and year.

  10. If scanning is being completed by another area, in addition to the above, verify that all paper listings and media have been returned to CLO and all pages have been scanned.

  11. Retain the media in date order for ten (10) years, then forward to the Federal Records Center.

  12. Retain scanned paper listings for three (3) years, then forward to the Federal Records Center.

  13. When a request for a Form 3877 is received, use ALS Display to research the certified mail number. Follow local procedures for pulling a copy of the Form 3877 and forwarding it to the requester.

Other Notices

  1. Under IRC 6320, the IRS must notify taxpayers in writing of their right to a CDP hearing with the Office of Appeals the first time a tax period is included on an NFTL. If the same tax period appears on a subsequently filed NFTL, the IRS notifies the taxpayer of the filing, but the taxpayer is not entitled to CDP rights. Additionally, the IRS notifies a Power of Attorney (POA) when an NFTL is filed against their client and notifies a third party if they have been named on a special condition NFTL.

  2. The most common non-CDP notices are normally generated through ALS and printed and mailed by CPS. Some other notices require manual preparation and issuance by the requester. The table below describes the different notices and how they are generally issued.

    Notice Issued to... Issued by...
    Letter 3171, Notice of Federal Tax Lien Additional Filing Taxpayer when an NFTL is filed on a tax period included on a previous NFTL CPS
    Letter 3262, Notice of Federal Tax Lien Filing - Power of Attorney POA when a new NFTL is filed and the taxpayer (client) received Letter 3172 CPS
    Letter 3271, Notice of Federal Tax Lien Additional Filing - Power of Attorney POA when an NFTL is filed on a tax period included on a previous NFTL and the taxpayer (client) received Letter 3171 CPS
    Letter 3886, Special Condition Notice of Federal Tax Lien Filing - Taxpayer Taxpayer when a special condition NFTL is filed against a third party holding title to taxpayer assets Requester
    Letter 3177, Special Condition Notice of Federal Tax Lien Filing - Third Party Third party when a special condition NFTL is filed against them for holding title to taxpayer assets Requester
    Letter 3527, Notice of Federal Tax Lien Filing - Child Support Obligation Taxpayer when an NFTL is filed for outstanding child support payments Requester
  3. The above non-CDP notices are sent by regular mail. These notices are NOT sent by certified mail.

Customer Contacts

  1. CLO receives inquiries and requests from a variety of internal customers (e.g., Field employees, Taxpayer Assistance Centers (TAC)) and external customers (e.g., taxpayers, practitioners, third parties, recording offices). CLO must provide customers complete and accurate responses. It is important that all employees are familiar with the major duties and responsibilities in providing quality service to customers. See the following sections for general guidance on customer contacts:

    • IRM 21.1.3, Operational Guidelines Overview

    • IRM 21.1.1.4, Communication Skills

    • IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

Internal Contacts

  1. IRS employees are considered internal contacts for CLO. Recording offices are also considered internal contacts for CLO relative to the methods of communication available to exchange information for the effective processing of lien documents. Specific taxpayer account information should not be disclosed to recording offices without proper authorization.

  2. Contacts can be made by mail or fax and, with an IRS employee, by secure email.

  3. When faxing confidential information, follow fax procedures contained in IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information.

    Caution:

    When emailing Personally Identifiable Information (PII) or Sensitive But Unclassified (SBU) information messages or attachments, always use IRS approved encryption technology. See IRM 1.10.3.2.1, Secure Messaging & Encryption.

Request to Stop a Lien Document
  1. There will be times when an IRS employee will contact CLO to have a lien document stopped before filing.

    Example:

    The NFTL was requested and the taxpayer full paid the following day.

    Example:

    A release of lien was systemically generated, but the payment causing the release was reversed.

  2. The ability of CLO to stop a lien document before filing depends on whether the document has been printed and sent to the recording office.

  3. NFTLs can be removed (deleted) from ALS prior to printing of the NFTL. When a request to stop the NFTL has been made and the NFTL has not been printed, take the actions shown below.

    1. Do not print the NFTL.

    2. Research to see if a voucher has been built that includes the NFTL.

    3. Immediately give all research and documentation about the deletion to the Team Manager for review and to delete the NFTL from ALS and, if built, the BSV.

    4. If the BSV has been built but the NFTL has not yet printed, ensure the employee processing the documents is aware of the request to remove the NFTL from the voucher.

  4. After printing the NFTL but before sending it to the recording office, the NFTL must be physically pulled from the batch prepared for mailing. Once successfully pulled, take the actions shown below.

    1. Give all information immediately to the Team Manager for review and to delete the NFTL from ALS and the BSV.

    2. Ensure the employee processing the documents is aware of the request to remove the NFTL from the voucher.

  5. After sending the NFTL to the recording office, advise the requester the NFTL cannot be stopped by CLO.

  6. Depending on when the NFTL is stopped in the process, the CDP notice may still be generated. Advise the requester of the possibility that the CDP notice may be issued even though the NFTL is not filed.

    Note:

    The issued CDP notice is valid even if no NFTL is filed. See IRM 5.12.6.3.16, Invalid CDP Notices and Rescinding the CDP Notice.

  7. In situations where a request is received to stop the filing of other lien documents, most commonly a release or withdrawal, similar processes as described above apply. Instead of deleting the lien document from ALS though, the action generating the lien document must be reversed. A user with the appropriate permissions, usually a Manager, can reverse a release or withdrawal on ALS. Refer to the ALS User Guide for direction.

  8. If the release, withdrawal, or other document has been sent to the recording office, CLO can attempt to contact the recording office to see if they could reject the document before recordation, but generally the document cannot be stopped.

Taxpayer Assistance Center Requests

  1. To expedite securing a payoff letter or release of lien, taxpayers may go to a Taxpayer Assistance Center (TAC) to request assistance.

  2. If the TAC office receives a request for a payoff, the TAC office should do the computation unless the request is for a Restricted Interest (RI) or restricted penalty account. See IRM 21.3.4.13.1, Lien Payoff Requests.

  3. When there is restricted interest and/or penalties the field assistor should send a request through secure email and in the subject line state Lien Payoff Request-Restricted Interest/Penalty Account/Walk-in Taxpayer. The following information should be included in the email:

    • Taxpayer name and address and identifying number

    • Taxpayer's telephone number and the best time to reach them, if additional information is needed

    • Computation date for payoff

    • Tax module(s) to include in the payoff

    • Requester's name and post of duty

    • Any conditions that may impact calculation, e.g., combat zone dates

  4. All CLO Team email boxes must be monitored for expedited TAC requests. If the payoff request is sent to the Walk-in Mailbox in error, forward the email to the correct team with a copy to the requester.

  5. The field assistor will advise the taxpayer the request has been submitted and when they can expect a response. The taxpayer will be supplied the toll-free number to CLO.

  6. Complete the computation using cc COMPA or COMPAF, as necessary. For cases requiring further computations, forward the request to the CLO FORT for calculation and possible referral. CLO FORT should provide a time estimate for when they will provide a response to the payoff request.

  7. Reply to all persons on the requesting email when there are questions needing clarification or acknowledging receipt of the request. Also, reply to all with the estimated time-frame for sending the payoff to the taxpayer.

  8. Prepare a payoff letter after receiving the interest computations and mail it to the taxpayer.

    Note:

    In the event the taxpayer has an urgent need, the TAC Manager should contact the CLO Manager to determine the time frame for completion of the request.

  9. A taxpayer visiting a TAC office might request an immediate lien release to hand carry to the recording office. In these situations, the TAC assistor will conduct initial research to determine the status of the taxpayer's account and will contact CLO, as needed.

  10. If the taxpayer is fully paying the liability by cash, certified funds, or other secured payment type described in IRM 5.12.3.3.1.1, Liability Satisfied by Payment, the field assistor will send a request for lien release through secured email to CLO. The request will include:

    • The taxpayer's name and TIN

    • The tax periods being satisfied

    • How the periods are being satisfied (cash, certified funds, satisfied previously on IDRS), the amount of the payment, and a statement that the account is or will be in status 12

    • Date of the payment or when the modules were satisfied

    • The Field Assistor's name and post of duty

    • The name of an additional field assistor to cc on response

  11. As needed, ask for any additional information or clarifications by secure email. This should include any alerts to system down issues.

  12. It is the responsibility of TAC to ensure the accuracy of all requests for an immediate release of a lien. CLO does not verify the validity of the request for a lien release since TAC has the authority to release a lien under IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates. However, review the request to ensure that all the modules on the NFTL are addressed either by the payment received by TAC or by showing satisfied on ALS. If any module on the NFTL is not addressed, contact TAC for additional research or clarification.

  13. Verify the NFTL has court recording data on ALS. If there is no recording data, use available research methods to locate the recording information. Inform the TAC employee of the delay.

  14. Input the release on ALS following standard processing procedures, with the exceptions noted below.

    1. Use your TSIGN as the requesting employee.

    2. Indicate the release has already been recorded so the release does not go onto the voucher for the next printing cycle.

    3. Advise the Manager that immediate approval of the release is needed on ALS.

  15. If the lien has self-released, advise the TAC employee of the situation. If the taxpayer still wants a certificate of release, prepare one following the instructions in IRM 5.19.12.2.7.4, Self-Releasing Liens.

  16. Print the release, scan it, and send it to the requester by secured email. For NFTLs filed in electronic recording offices, provide a facsimile of the NFTL showing the release status and advise the assistor of the ELF procedures.

  17. Update ALS with a history about the immediate release, specifying the requesting field assistor's name and post of duty.

  18. Notify the team responsible for processing lien documents where the release will be hand carried so the release can be removed from the voucher and print batch.

  19. The process from receipt of the TAC email to the return of the release should be completed within one (1) hour. If it will take longer than one hour, contact the TAC employee immediately.

    Note:

    Per IRM 21.3.4.13.2, Lien Release Requests, TAC must contact CLO by 3:30 p.m. (local TAC office time) to get an immediate lien release. Requests from Hawaii and Alaska are based on Pacific time.

  20. Upon receipt of the release, the TAC assistor will date stamp the certificate and provide it to the taxpayer. The taxpayer will be advised that when they hand carry the release to the recording office, they may be charged a fee to file the release.

  21. If the payment is made by personal check or non-certified funds, the field assistor will process the payment and update IDRS with the taxpayer's most recent address, if needed. TAC will inform the taxpayer that the lien will be released within 30 days and a copy of the certificate of release will be mailed to their address.

Taxpayer Advocate Service (TAS)

  1. TAS referrals regarding NFTL actions are sent to the FORT via Form 3210. The FORT TAS Liaison will acknowledge receipt of the TAS referral by telephone or email within:

    • one (1) business day of receipt of an expedited case (Case Criteria 1-4, Economic Hardship), or

    • three (3) business days of receipt of a non-expedited case (Case Criteria 5-8, Systemic Hardship).

  2. The FORT forwards the TAS referral to the applicable lien team. Upon receipt, the Team Manager takes the following actions.

    1. Assign the case to a tax examiner.

    2. Monitor the case assignment log to ensure timely case completion.

  3. The tax examiner must complete the requested action:

    • within three (3) business days of receipt of expedited cases, or

    • by the requested completion date shown in Item 3 of the Form 12412, Operations Assistance Request (OAR), for non-expedited cases.

  4. The tax examiner works with the TAS Liaison in the FORT to resolve any issues that prevent case resolution.

  5. If the tax examiner working the OAR determines additional research or documentation is required on an OAR, the tax examiner contacts the assigned TAS employee within one (1) workday of the determination, or within one (1) business day of the receipt of the OAR on expedited cases. If the assigned TAS employee cannot provide the additional information within three (3) business days of the request, the tax examiner may return the OAR to TAS and the case will be closed out of inventory.

  6. If the case cannot be completed by the requested completion date, the tax examiner must contact the TAS Liaison to renegotiate a completion date. If resolution of the case cannot be completed by the negotiated completion date or there is disagreement about the negotiated completion date, the tax examiner should elevate the disagreement to the Team Manager.

  7. After taking the necessary actions to resolve the issues of the case, complete Form 12412, Section VI, 1a & 1b and return the completed case to the Team Manager or Lead for review. If requested case actions cannot be completed, return the case to the TAS Liaison with an explanation of why case cannot be resolved.

  8. The Manager takes the actions shown below.

    1. Review completed cases to ensure correct actions were taken.

    2. Complete Section VI of Form 12412.

    3. Send the case back to the FORT TAS Liaison and the TAS Case Advocate.

Recording Offices

  1. CLO might be contacted by recording offices via the internal toll-free line or other means regarding payment or recording issues. As much as possible, the assigned state team should attempt to provide "one-stop service" to facilitate the filing process.

  2. When a call is received on the toll-free line from a recording office, identify the recording office’s information and determine the problem.

    1. If the problem can be resolved independently, take the appropriate actions. Such issues may include, but are not limited to, verification of a walk-in release, fee adjustment, and missing or incorrect recording data.

    2. If you cannot resolve the problem, place the caller on hold and contact the Manager or Lead of the team assigned the recording office's state. If contact is made, transfer the call to the Manager/Lead’s Aspect telephone line. Otherwise, document information about the call and hand carry to the appropriate Manager/Lead.

    3. If the problem cannot be resolved while the recorder is on the line and the situation is such that a document cannot be recorded and/or the entire BSV may be rejected, promise a call back within the hour and take appropriate action to resolve the problem.

  3. When notified of a recording issue by means other than by telephone, attempt to resolve the issue by conducting research and, if necessary, contacting the recording office.

  4. In situations where the recording office raises a question about a payment, explain the payment process, including TOP offset. As needed, provide one of the following resources as a contact point for further information:

    • Internet Payment Platform (IPP) at (866) 973-3131 or email ippgroup@bos.frb.org

    • Accounts Payable Financial Operations (fka Beckley Finance Center) Lien Technician at (304) 254-3300

    • Treasury Offset Program at (800) 304-3107

  5. If there is a payment issue that cannot be resolved through IPP or TOP offset, elevate the issue to Accounts Payable Financial Operations. They will research the issue and contact the recording office, if necessary.

    1. If Accounts Payable is able to resolve, they will notify the CLO team.

    2. If Accounts Payable is unable to resolve, refer to the FORT for resolution.

  6. For all other communications from the recording offices, determine the appropriate action to take. As needed, consult the Team Manager, Lead, or FORT.

  7. Document the ALS voucher program with the steps taken to resolve an issue.

  8. For a recording issue that cannot be resolved, elevate the issue to the FORT.

Treasury Offset Program (TOP)
  1. The Treasury Offset Program (TOP) is a federal, centralized offset program administered by Financial Management Services (FMS) to collect delinquent debts. Before a vendor (i.e., recording office) is issued a federal payment (including payment of filing fees), FMS searches its database to determine whether the jurisdiction as a whole owes a federal debt.

  2. A TOP offset occurs when another department within the same government jurisdiction as the recording office owes a federal debt. The payment designated for the lien document fees is offset to apply toward the debt of the other department.

  3. The TOP offset is usually discovered by the recording office when they receive a diminished amount for the recording of the lien documents. The reduced amount may be as low as one dollar ($1.00), but will not be less than that amount.

  4. TOP offsets continue until the debt of the other department is fully paid.

  5. When a call from a recording office about a TOP offset is received, attempt to resolve the issue by explaining the offset program. Information in Pub 1468, Guidelines for Processing Notice of Federal Tax Lien Documents, may be helpful. If unable to resolve the issue, immediately refer the matter to the FORT.

  6. If the FORT is unable to resolve the issue by providing additional information to the recording office, research is conducted for the specific state law that covers the filing responsibility of the particular recording office.

  7. The FORT prepares a letter to address the situation and demand that the lien documents be filed. As needed, Counsel may be consulted to assist with the research and the wording of the letter. See Exhibit 5.19.12-4, Sample Letter to Recording Office on Treasury Offset Program, for a sample format of a letter developed with Counsel.

  8. The letter is signed by the CLO Operations Manager and mailed to the recording office. If the BSV and documents were rejected by the recording office, return them with the letter serving as a transmittal.

  9. If the recording office refuses to file the lien documents after receiving the letter from the Operations Manager, refer the issue back to the FORT. The FORT will prepare a formal referral to Counsel for legal intervention.

External Contacts

  1. CLO is regularly contacted by taxpayers, taxpayer representatives, and other third parties including banks, title companies, and prospective purchasers. These are considered external contacts. These contacts can be by mail, fax, or on the Aspect toll free line.

  2. Disclosure rules must be followed on each and every contact. Below are only some of the disclosure rules.

    1. Before disclosing any tax information, verify that you are speaking to the taxpayer or their authorized representative. See guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication.

    2. Exercise caution when leaving information on answering machines or voice mail. See IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail.

    3. Observe requirements before faxing confidential information to taxpayers. See IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information.

    4. Do not send an email with taxpayer information outside the IRS, even if authorized by the taxpayer. See IRM 11.3.1.17.2, Electronic Mail and Secure Messaging.

    5. An individual is entitled to account information for any assessment for which they are liable, regardless if their name is on an NFTL. Conversely, an individual is NOT entitled to account information for assessment for which they are NOT liable, regardless if their name was inadvertently included on an NFTL. For the latter situation, follow procedures to amend the NFTL to remove the taxpayer’s name or the taxpayer may request an NFTL withdrawal.

  3. Any correspondence being faxed or mailed to the taxpayer must have the SSN redacted to the last four digits in the SSN.

  4. When speaking to the taxpayer, verify the taxpayer's address. If the current address differs from IDRS, update the IDRS address using an appropriate command code (e.g., ENREQ). Be sure to enter your name, title, and phone number in the REMARKS field. See IRM 21.1.3.20, Oral Statement Authority, for guidelines on updating the taxpayer's address.

  5. Any correspondence returned to CLO as undeliverable should be destroyed in accordance with locally prescribed guidelines. Correspondence not requiring a follow-up action by the addressee should not need additional research.

Third Parties
  1. Disclosure of information on a request from third parties requires one of the following:

    • Valid Form 2848, Power of Attorney and Declaration of Representative

    • Valid Form 8821, Tax Information Authorization

    • Telephonic authorization from the taxpayer in accordance with IRM 11.3.3.3.2, Requirements for Oral Authorization

    • A written request from a person who demonstrates that they possess, or intend to obtain, a right in the property attached by the lien. The written request should include the reasons the information is desired and properly identify the NFTL in question. A prospective purchaser should attach a copy of the sales contract or a lender loan application. See IRM 11.3.11.10, Disclosure of Amount of Outstanding Lien.

      Note:

      IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication. provides guidance on verifying and authenticating the third party representative. For payoff requests where specifics of the taxpayer’s account are not discussed, the authentication of the third party’s SSN, as described in IRM 21.1.3.3(3), is not required. The third party’s authorization, as evidenced by the Centralized Authorization File (CAF), Form 2848, Form 8821, acceptable written documentation, or verbal statement from the taxpayer, is sufficient to provide the payoff.

  2. To authorize a person to act on their behalf to resolve tax matters, the taxpayer must complete Form 2848. To authorize a third party to inspect or receive confidential information, the taxpayer can submit a Form 8821.

  3. Verify on IDRS CAF if authorization has been received and established for the taxpayer. If not, the taxpayer or Power of Attorney (POA) needs to submit the appropriate form to receive information on the taxpayer's account.

    Note:

    If CLO receives a Form 2848 or Form 8821 that shows the third party is authorized for the tax periods, additional verification of CAF is not needed.

  4. When the authorization form is received, review the document to ensure it is valid. Review the instructions for the Form 2848. See IRM 21.3.7.5.1, Essential Elements for Form 2848 and Form 8821.

  5. Upon receipt of an inquiry from an authorized third party, research ALS to verify that an NFTL exists. If an NFTL is not found on ALS ask for additional information to identify why they believe there is an NFTL. Some possibilities and actions to take are in the table below.

    If the inquiry is for a(n).. Then..
    Estate tax lien Provide contact information for the Advisory Estate Tax Group
    MCAR notice of lien Provide contact information for International
    State lien Advise the requester to call the State that issued the lien
    Levy Provide the contact information for the employee or function assigned the case.
  6. Review the authorization to ensure the tax modules that are listed match the modules on the NFTL(s) in question.

    1. If the authorization does not cover the tax periods on the NFTL, send the response directly to the taxpayer and advise the third party of the authorization situation (either verbally or in writing).

    2. If the authorization covers some, but not all, of the tax periods on the NFTL, the tax information shown on the NFTL (or Collection due process notice) can be given to the representative as well as a payoff for the full amount of the NFTL. If the representative wants to further discuss the non-covered periods, a revised/new authorization form must be provided. See IRM 11.3.11.10, Disclosure of Amount of Outstanding Lien.

    3. If the authorization covers the tax periods on one NFTL but not the tax periods on another NFTL, only the information from the NFTL with the covered tax periods can be given to the representative. Advise the representative that another NFTL is filed, but the information for that NFTL cannot be discussed until a revised/new authorization form is provided.

  7. The checking of box 4, 5 or 6 on Form 8821 does not relate to the validity of the form. If box 4 is not checked on the Form 8821, forward the Form 8821 to the CAF unit. If box 4 on Form 8821 is checked, do not send the Form 8821 to the CAF. The CAF unit addresses box 5 and/or 6 on Form(s) 8821 they receive.

  8. When a Form 8821 or 2848 is received but the authorization is not on IDRS CFINK, input an ALS history with the contact information and years applicable. This can be used for further follow up contacts and letter issuance, and re-submission of the Form 2848 or Form 8821 will not be necessary. Forward the forms to the CAF area when appropriate.

    Note:

    Generally, third party requests related to Form 8821 must be made within 60 days of the authorization. However, when Form 8821 is submitted by a mortgage, title, or escrow company in connection with a lien payoff, the form is exempt from the 60-day rule for signature as the request is considered "resolving an issue related to a Federal tax matter." See IRM 11.3.3.2.1, General Requirements for Disclosure to Designee of Taxpayer.

  9. When the taxpayer verbally authorizes information to be given to a third party, document the ALS history that verbal authorization was given, who was authorized, the contact information of the third party, and for what tax modules the authorization was given.

    Note:

    Once documented, the verbal authorization remains valid until such time as the financial transaction is completed or the authorization is revoked, thereby eliminating the need for a second consent or Form 8821.

Request for Payoff
  1. Requests for lien payoffs can be received in a variety of ways (e.g., mail, fax, Aspect toll-free line) from a variety of customers (e.g., taxpayers, POAs, authorized third parties). Payoff computations may be completed manually or using the ALS Payoff Utility, which generates Letter 3640, Taxpayer Lien Payoff, or Letter 3641, Third Party Lien Payoff (Escrow or Financial Institutions).

    Reminder:

    Disclosure guidelines must be followed when addressing requests. See IRM 21.1.3.2, General Disclosure Guidelines.

  2. When a payoff request is received, research ALS and IDRS to determine the status of the NFTL and the tax periods. If a taxpayer has liabilities under an SSN and EIN, the requests can be worked simultaneously but separate payoff letters are issued.

  3. Research ALS to verify that an NFTL exists and whether the NFTL is still in effect.

    1. If an NFTL is not found on ALS ask the requester to provide information for why they believe there is an NFTL. The requester may be confusing something else for an NFTL. Some possibilities and actions to take are shown in the table below.

      If the request is for a(n).. Then..
      Estate tax lien Refer the request to Advisory Estate Tax Group
      MCAR notice of lien Refer the request to International
      State lien Advise the requester to call the State that issued the lien
      Levy Refer the request to the employee or function assigned the case.
    2. If there is no NFTL but tax liabilities are owed, refer the payoff request based on the status of the tax module(s) as shown in the table in (4) below.

  4. Determine whether the request should be referred to another office based on the status of the tax module(s) on IDRS.

    If status is.. And.. And the inquiry is by PHONE, then.. Or the inquiry is in WRITING, then..
    26 The account is assigned to an RO (i.e., the assignment number does not end in 00) i) Use RO Lookup in SERP to secure contact information for the assigned RO.
    ii) Provide the requester the RO contact information.
    ii) Advise the requester to contact the RO to secure a payoff and/or discuss their account.
    i) Fax the request to the attention of the assigned RO. Include Form 8821 if applicable.
    ii) Email the RO advising of the referral. Include the received date of the request, requester information, if Form 8821 was sent with the fax, and the fax number used.
    71 The TC 780 is posted on IDRS. Advise the requester to contact the Monitoring Offer in Compromise unit (MOIC) and provide the hot line number as listed on SERP. Refer the request to the MOIC function as shown on SERP.
    71 The TC 780 is not posted on IDRS Complete the request. Complete the request.
    72 The TC 520 closing code is 60-67, 81, or 83-89 Advise the requester to contact the Centralized Insolvency Operation (CIO) and provide the toll free number listed on SERP (800-973-0424). Fax the request to CIO using the fax number listed on SERP (855-235-6787).
    72 The TC 520 closing code is 70-75 or 80 Advise the requester the case is an Advisory issue and provide the phone number of the assigned Advisory Office. See Pub 4235 Fax the request to the assigned Advisory Office. See Pub 4235
    72 The TC 520 closing code is none of the above Complete the request. Complete the request.
    Any not listed Any condition not listed Complete the request. Complete the request.

    Note:

    A referral to a centralized function may be subsequently referred, based on the function’s internal guidance. For example, a referral to CIO may be referred to Field Insolvency depending on the nature and status of the bankruptcy.

    Reminder:

    CLO may complete payoff requests involving accounts assigned to a Private Collection Agency following the guidance in IRM 5.19.1.5.21.4, ACS and FA Taxpayer Contacts on Private Debt Collection Accounts.

  5. Refer the payoff request to the assigned function for completion of the request if any of the modules are in the described status as shown in the table. Whenever referring a written payoff request to another function, take the following actions.

    1. Send the requester Correspondex Letter 3645C, Case Processing Liens, to advise of the referral.

    2. Input an ALS history of the request and to which office it was referred.

  6. For requests not in status 26, 71, or 72, or in a condition relative to those statuses (as shown in the table above), complete the payoff request. Depending on the circumstances, the payoff letter may be generated through the ALS Payoff utility or by using the AMS Payoff Calculator and manually completing the payoff letter. Use the payoff letter most appropriate for the situation.

    • Letter 3640 (or Letter 3640-B), Taxpayer Lien Payoff

    • Letter 3641 (or Letter 3641-B), Third Party Payoff (Escrow or Financial Institutions)

      Reminder:

      Templates of the payoff letters are available through ICS or the Publishing catalog, or locally through CLO management.

  7. The ALS Payoff utility generates a payoff for all tax liabilities, regardless if NFTLs are filed in multiple locations for the same or different liabilities. If the payoff request is for a specific NFTL in a specific recording office, the payoff letter must be manually prepared. For clarity, the manuallly-prepared payoff letter should show the SLID of the specific NFTL and emphasize that other NFTLs may be filed in other locations.

  8. For a tax module marked as expired on ALS (i.e., self-released), but has a balance due on IDRS due to an extended CSED, payoff data is shown differently on the letters based on the NFTL status.

    1. If the NFTL is marked as self released on ALS because all the modules on the NFTL show as expired even though there remains a balance due on one or more of the modules, enter the payoff information for those balance due modules on the Letter 3640/3640-B under "Other tax debt." The payoff information should not be included on Letter 3641/3641-B because the NFTL is no longer effective relative to third party claims.

    2. If the NFTL is marked as “open” or “refiled” on ALS and some, but not all, of the modules on the NFTL show as expired even though there remains a balance due on one or more of the expired modules, include the payoff information for those balance due module(s) on the appropriate payoff letter under "Notices of lien on tax debt."

      Note:

      See IRM 5.19.12.2.7.4, Self-Releasing Liens, for procedures on referring a case for a revocation and new NFTL determination.

  9. ALS Payoff Utility will compute the payoff amount for modules on TXMOD.

    1. If a module is not on the Taxpayer Information File (TIF), use IDRS command MFREQ/RECON to retrieve the tax module and its related entity data from Master File (MF).

    2. During dead cycles, MFREQ/RECON are not available so if all NFTL modules are not on TXMOD, prepare a manual computation and letter.

  10. Compute the payoff to the:

    • date given by the requester, or

    • 30 days from the current date, if no date is given.

  11. Be alert to situations that may require special handling.

    1. If the tax module has an "I" freeze, it could mean there is additional interest due on the account and the module is not truly satisfied. Follow procedures for restricted interest and send these to the FORT for review and possible referral.

    2. If there is a COMP Hold on an account due to a pending adjustment (i.e., TC 29X/30X), an accurate payoff cannot be computed until those transactions have posted. Explain to the taxpayer there is a pending adjustment on the account, a payoff cannot be completed until that adjustment posts, and the requested payoff letter may take longer than the normal processing time. Look at the cycle date next to the pending transaction and complete the payoff at that time.

    3. If the computation date is within the grace period of a notice, IDRS or AMS replaces the computation date with the notice date. Depending on whether a specific payoff date was requested and how far the computation date is from the end of the notice period, consider replacing the computation date with the closest date outside the grace period.

  12. Computation of the payoff amount is systemic unless there is a computation hold on penalty/interest requiring a manual computation. If manual computations are needed, complete the computation and update the ALS Payoff Utility letter.

    1. If interest is manually computed, send a copy of the interest computation report to the taxpayer with the payoff letter, pursuant to IRC 6631.

    2. If interest or penalty is manually computed, input the amount of the computation to IDRS using the appropriate transaction code (e.g., 190, 270, etc.). Use the “computed to” date for the posting date.

      Reminder:

      When calculating the failure to pay penalty, add 10 days to the Letter 1058 or Status 58 date to allow for the percentage increase under IRC 6651(d)(2).

  13. ALS Payoff Utility requires identification of who has requested the payoff.

    • "T" if the request is from the taxpayer

    • "P" if the request is from a valid Form 2848 or the POA is on the CAF

    • "O" if the request is from a valid Form 8821 or person showing a material interest

    Reminder:

    Do not disclose information if the request is not from the person owing the debt or an authorized third party.

  14. Before generating any letter, review for accuracy of the following:

    • Entity

    • Taxpayer current mailing address, as verified through request received

    • Tax periods

    • Manual computation of penalty and/or interest

  15. Print and mail the letter to the taxpayer and/or the authorized third party as soon as the letter becomes available. For expedited requests fax the request when a fax number has been supplied.

    1. If the request is input to ALS by 100 P.M. EST, the letter will be available on ALS to print and send at 1100 A.M. EST the next business day.

    2. When the payoff request is received by phone, input the letter request to ALS while the requester is on the line.

  16. Managers should review the print queue to ensure all payoff letters are printed and mailed timely.

  17. For payoff requests received by phone, take action according to the table below. Advise the requester of current processing time frames and, if applicable and appropriate, any reasons the payoff may be delayed (e.g., restricted interest, pending adjustment).

    If the caller... Then...
    Indicates an immediate need for a payoff amount Compute the amount due using INTST, AMS, or other available program and provide a verbal payoff amount.
    Requests written confirmation of the payoff Request the payoff letter through ALS while the customer is on the line and mail the Letter 3640/3641 as soon as it is available.
    Expresses a need for an immediate payoff letter due to a hardship (e.g. imminent closing, insists they will incur financial harm, previous request input to ALS did not print and no time to re-request) Compute the amount due using INTST, AMS, or other available program, manually prepare a payoff letter, and, with Manager/Lead concurrence, send to the caller.
    Requests a faxed copy of the payoff letter Fax the payoff letter as soon as it is available.

    Note:

    AMS will provide payoffs for all of the modules on the TIF that the taxpayer owes. For modules not on the TIF, MFREQC must be used to include them.

  18. Maintain any manual payoff letters in the team until the letter expires.

  19. Input an ALS history once the payoff letter is provided, whether verbally, faxed, or mailed. Notate any special circumstances such as manual processing or need for immediate payoff.

  20. When a request for an updated payoff is received from a third party, check the history on ALS to verify that a payoff was previously input.

    1. If the history indicates a previous payoff, verify the name and address of the third party requester by viewing the payoff letter. If the same third party was previously issued a payoff letter, provide the updated payoff. A new Form 8821, Tax Information Authorization, is not needed.

    2. If there is no history of a previous payoff or it is a different third party, follow standard payoff procedures and secure Form 8821 as needed.

  21. Payoff requests must be completed and mailed within 14 calendar days from receipt in CLO. If the request is taken by phone the request must be input directly into ALS while the caller is on hold.

    Exception:

    For payoff request being held for pending adjustments (TC 29X/30X), the 14-day time frame is not applicable. The payoff request should be completed as soon as possible after the adjustment has posted.

  22. Time spent preparing payoffs should be reported using:

    • OFP 700-69000, if the request is received by phone or by fax in conjunction with the call. Do not take a closure count.

    • OFP 810-69070, if a written request is received. Do report a closure count.

Lien Payment Processing
  1. Payments received as a result of a request for a lien payoff are processed by Submission Processing.

  2. Lien payments should be sent to one of the addresses below based on the mailing type used.

    Regular Mail Overnight Mail
    Internal Revenue Service
    P.O. Box 145595
    Stop 8420-G
    Cincinnati, Ohio 45250-5595
    Internal Revenue Service
    7940 Kentucky Drive
    Stop 31-A
    Florence, KY 41042
  3. If a copy of Letter 3640 or Letter 3641 is received with the payment, Submission Processing will apply the funds to the open modules as shown on the letter.

  4. If the Letter 3640 or Letter 3641 is received with certified funds, Submission Processing will process the funds as described above and notify CLO that the payment was made by certified funds. After reviewing the case to ensure all the tax periods on the NFTL will be fully satisfied after the certified funds are applied, input a release of the lien on ALS. The release must be input within five (5) business days after notification.

  5. Occasionally, a payment may be discovered in the course of sorting CLO receipts. If this occurs, research ALS to determine where the payment should be posted and complete a Form 3244, Payment Posting Voucher, indicating the following:

    • Tax module for the payment to post

    • Date payment received

    • Amount of payment

    • TC 670 with a designation payment code (DPC) of 007

      Note:

      A separate Form 3244 must be prepared for each tax module on which money is being applied.

  6. In addition to the Form 3244, complete a Form 4287, Record of Discovered Remittances. See IRM 3.8.46, Discovered Remittance, for additional information.

  7. Forward the completed Forms 3244 and 4287 to Submission Processing, Receipt & Control for payment processing.

  8. If a tax return is included with the correspondence, forward the return to Submission Processing.

  9. Payments must be processed within one (1) business day of receipt.

Request for Release of Lien
  1. An external request for a lien release can come to CLO via the Aspect Toll Free system, mail, or fax. Generally the requests are from the taxpayer or their representative, but occasionally a request is received from a third party.

    Reminder:

    Follow disclosure guidelines prior to giving any information. See IRM 21.1.3.2, General Disclosure Guidelines.

  2. Upon receipt of a release request, research ALS to determine if the lien has been released.

    1. If the lien has been released, advise the requester of the status.

    2. If the lien has not been released, research IDRS.

  3. Determine the status of the account on IDRS.

    1. For accounts in status 26, 71, or 72, follow referral instructions in IRM 5.19.12.7.5.2, Request for Payoff.

    2. Refer accounts with a "Z" freeze to Criminal Investigations (CI). Do not tell the taxpayer you are referring the case to CI.

    3. For accounts not meeting referral criteria, work the release request.

  4. Review IDRS to determine if the NFTL modules are satisfied.

    1. Check status 12 modules for an "I" freeze, which could mean there is additional interest due and the module is not truly satisfied.

    2. Be alert for partial release situations.

    3. Be alert for assessments split to different MFTs or modules moved to NMF.

      Reminder:

      The same tax liability is only collected once. So, if a joint MFT 30 module is mirrored into two MFT 31 modules, the full payment of one person’s MFT 31 module satisfies the same module of the other person.

  5. Based on the information available, take action according to the table below.

    If... Then...
    The NFTL modules are satisfied and the lien release has already been issued Advise the taxpayer of the release and that a copy would have been sent to the last known address at the time of release. If more than 30 days have passed since the release date, take the following steps.
    a) Verify the address for the taxpayer.
    b) As necessary, follow procedures for updating the address in IDRS. See IRM 21.1.3.20 Oral Statement Authority.
    c) Provide the taxpayer with a copy of the release or, in the case of ELF filings, send a facsimile.
    The NFTL modules are satisfied, but the lien release has not been issued a) Ensure that the recording information for the NFTL is in ALS. If the recording information is missing, use the best research method available to locate the recording data.
    b) Review ALS and IDRS to determine any other reason the lien release may not have been issued (e.g., reversed payment, freeze code).
    c) Verify the taxpayer’s address and update IDRS if necessary.
    d) Input the lien release on ALS and explain to the taxpayer that a copy of the release will be mailed.
    The payment to satisfy the NFTL modules is pending on IDRS a) Advise the taxpayer that the lien will be released within 30 days of the payment posting.
    b) If the taxpayer requests an expedited release, ask for verification that the payment was made by a qualifying payment type (e.g., certified check) or has cleared the financial institution (e.g., canceled check). See IRM 5.12.3.3.1.1, Liability Satisfied by Payment. Upon satisfactory proof, input the lien release on ALS and explain to the taxpayer that a copy of the release will be mailed.
    The NFTL modules are not satisfied and there are credit balances on IDRS from prior tax periods that will satisfy the NFTL modules a) With managerial approval, transfer the credit to the appropriate module by inputting the appropriate transaction to IDRS, if authorized, or completing Form 2424 . See IRM 21.5.8, Credit Transfers.
    b) Input the lien release on ALS and explain to the taxpayer that a copy of the release will be mailed.
    The NFTL modules are not satisfied, and there are no credit balances on IDRS Advise the taxpayer and proceed to the Payoff Letter Process. See IRM 5.19.12.7.5.2, Request for Payoff.
    IDRS shows the assessments for the NFTL modules were abated but an unpaid NFTL filing fee remains Advise the taxpayer of the outstanding balance to pay and the option to submit an abatement request to the Advisory Office where they reside.
    If the lien has self-released Follow the procedures in IRM 5.19.12.2.7.4, Self-Releasing Liens.
  6. The lien release process is described in IRM 5.19.12.2.7, Lien Release.

  7. Releases of satisfied liens must be input to ALS within five (5) business days after receipt of the request.

  8. Time spent releasing liens should be charged using:

    • OFP 700-69000, if the request is received by phone. Do not take a closure count.

    • OFP 810-69080, if a written request is received. Do report a closure count.

Missing Payment Inquiries
  1. Occasionally, CLO receives a lien release request in which the taxpayer states the liability was fully paid but the payment is not showing on IDRS. Generally, CLO refers these inquiries for further research and resolution.

  2. Prior to making the referral, request a copy of the canceled check (front and back) or other proof of payment.

  3. Refer the inquiry to the appropriate function following the table below.

    Status Proof of Payment Provided Proof of Payment NOT Provided
    22, 24 Complete Form 4442 and fax with missing payment information to the appropriate ACS Support Liaison listed in SERP. Complete Form 4442 and fax to the appropriate ACS Support Liaison listed in SERP. Advise the taxpayer to send proof of payment to ACS Support Liaison.
    26 Advise the taxpayer to contact the assigned revenue officer. Advise the taxpayer to contact the assigned revenue officer.
    Other Complete Form 4442 and fax with missing payment information to appropriate CSCO office listed in SERP. Complete Form 4442 and fax to the appropriate CSCO office listed in SERP. Advise the taxpayer to send proof of payment to CSCO site.
  4. The referred office is responsible for researching the situation, inputting any IDRS command codes, and, when needed, requesting the lien release.

Other Types of Requests
  1. CLO responds to requests for lien payoffs, releases of lien, and other NFTL issues. CLO also handles all general lien-related inquiries before referring the more technical or legal questions to the FORT, Advisory, or other appropriate office.

  2. Inquiries can include, but are not limited to, the following topics:

    • Certificate of Discharge - A lien can only be "released" when it is satisfied (e.g., paid in full) or it is no longer enforceable. At times, a taxpayer may need to sell or transfer a specific piece of property but cannot satisfy the lien. The taxpayer may request for the property to be "discharged" from the lien so that it may be transferred free from the effects of the lien. If the conditions for discharge are met (i.e., usually the IRS receives the value of the Government’s interest in the property) a certificate of discharge may be issued. See IRM 5.12.10.3, Discharge of Property, for more details.

    • A Certificate of Non-Attachment - An NFTL identifies the taxpayer by name, address and redacted TIN. However, at times the lien may mistakenly be associated with a third party or a third party's property. Most often this occurs when the taxpayer and third party have a similar name. The IRS may, upon receipt of documented evidence, issue a certificate that the third party may use as proof that they are not the person, and theirs is not the property, that is subject to the lien. See IRM 5.12.10.13, Certificate of Non-Attachment, for more details.

    • Certificate of Subordination - The filing of the NFTL establishes the priority of the lien against certain creditors. Subordination allows another creditor to move ahead of the IRS lien in priority in order to benefit the Government. Most often this is requested when a taxpayer is getting a second mortgage or is refinancing an existing loan. The IRS can consider subordinating its lien to the new financing if the Government receives the value of its interest or the financing will ultimately increase the collection of the tax debt. See IRM 5.12.10.6, Subordination of Lien, for more details.

    • Withdrawal of NFTL - A lien cannot be released until the tax debt is satisfied or the CSED passes. A withdrawal removes the NFTL that was filed but the tax debt is still owed and the taxpayer is still liable for it. An NFTL may be withdrawn when certain conditions are met, including the NFTL was filed improperly or the withdrawal will facilitate collection. See IRM 5.12.9.3, Conditions for NFTL Withdrawal, for more details. An NFTL may also be withdrawn after the lien has been released. See IRM 5.19.12.2.8, NFTL Withdrawal.

  3. When handling inquiries for lien-related certificates, ensure the taxpayer understands that the submission of a request does not reflect approval of their request. The determinations for discharge, subordination, non-attachments, and withdrawals before lien release are generally made by Advisory. CLO has no impact on those determinations.

  4. The table below shows common inquiries involving liens and the most likely resolution for them.

    Inquiry Response
    Taxpayer wants to SELL or transfer ownership of his property; however, the proceeds from the sale will not satisfy the lien. a) Tell the taxpayer to contact the Advisory Office where the property is located to apply for a Certificate of Discharge of Property from a Federal Tax Lien.
    b) Refer the taxpayer to Publication 783, Instructions on how to apply for a Certificate of Discharge of Property From Federal Tax Lien.
    c) Advise the taxpayer to read this publication BEFORE contacting Advisory.
    Taxpayer wants to REFINANCE her mortgage to lower the interest rate; however she cannot borrow enough to satisfy the lien. a) Tell the taxpayer to contact the Advisory Office where their property is located to apply for a Certificate of Subordination of Federal Tax Lien.
    b) Refer the taxpayer to Publication 784, How to Prepare an Application for a Certificate of Subordination of Federal Tax Lien.
    c) Advise the caller to read the publication BEFORE contacting Advisory.
    Taxpayer wants to SELL property or REFINANCE a mortgage and should be able to satisfy the lien from the proceeds. a) Secure information from the taxpayer to provide a payoff for the NFTL. See IRM 5.19.12.7.5.2, Request for Payoff.
    b) Advise the taxpayer that if the proceeds will not be sufficient for the payoff, they should apply for a discharge or subordination, as applicable, and inform them of that process, as necessary.
    Caller says he is harmed by a Notice of Federal Tax Lien on a delinquent taxpayer with the same or similar name. a) Tell the caller to contact the Advisory Office where the NFTL is filed to apply for a Certificate of Nonattachment of Federal Tax Lien.
    b) Refer the caller to Publication 1024, How to Prepare an Application for a Certificate of Nonattachment of Federal Tax Lien.
    c) Instruct the caller to read the publication BEFORE contacting Advisory.
    Taxpayer wants to get the lien REMOVED as it is affecting their employment. a) Tell the taxpayer they can apply for a Withdrawal of Notice of Federal Tax Lien.
    b) Refer the taxpayer to Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
    c) Ask the taxpayer whether the tax liability is still owed or the lien has been released.
    d) If the tax liability is still owed, advise the taxpayer to send their request to the Advisory office where they live.
    e) If the lien has been released, advise the taxpayer to send their request to CLO.
    Caller has applied for [any of the above] and has tried to contact Advisory several times, but has had no response. a) Apologize for the delay.
    b) Ask how long ago the application was made.
    c) Check ICS to look up the taxpayer's account. Check the history to determine the status.
    d) Advise the taxpayer of the status and of any questions or additional information needed, as noted in the history.
    e) Verify the taxpayer has the correct contact information for the Advisory office assigned.
    f) If the taxpayer indicates it has been more than 60 days since the application was submitted to the correct office, refer the issue to the Taxpayer Advocate Services using Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order). Input a history to IDRS ENMOD for the taxpayer, stating "911 to TAS."
    g) Input a history to ICS of the actions taken.
    Taxpayer has questions about how the lien shows on their credit report. Advise the taxpayer to contact the credit reporting agency/credit bureau. IRS does not report NFTL filings or lien releases to any credit reporting agency. How the agency shows the document on the credit report and the length of time it appears there is determined by that agency.
    Taxpayer wants to know any of the following:
    - What is the lien for?
    - What does the lien attach to?
    - Why were they not told that an NFTL would be filed?
    a) Advise the taxpayer that answers to common questions regarding federal tax liens can be found in Publication 594, The IRS Collection Process, or by searching "liens" on the IRS website (www.IRS.gov).
    b) Inform the taxpayer to contact their local Advisory Office if they have any additional questions regarding liens after reading the publication or reviewing the website.
    c) If the taxpayer has specific questions regarding their account, refer them to the assigned function/employee or, if not assigned, to the toll free line at 1-800-829-1040.
    Taxpayer requests abatement of the NFTL filing fee (TC 360) a) Advise the taxpayer that filing fees are generally only abated if the taxpayer did not cause the situation leading to the assessments or filing or the NFTL was filed due to an IRS error. See IRM 5.12.3.5.6, NFTL Fee Abatements, for additional information.
    b) If the taxpayer feels one of those factors was present, advise the taxpayer to send a letter to their local Advisory office providing their name, TIN, NFTL information, and reason for requesting the abatement.
    Caller wants to know why you cannot answer their questions. a) Tell the taxpayer that questions that are technical in nature are handled by the Advisory office.
    b) Advise the taxpayer to contact their local Advisory office.
    c) As needed, send Form 4442 to Advisory giving a detailed description of the taxpayer's questions.
    Caller has questions about the passport certification for seriously delinquent tax debt Refer the caller to the Philadelphia call site per IRM 5.19.1.5.19.10, Taxpayer Contacts.
    • Domestic call 855-519-4965

    • International call 267-941-1004

  5. When referring a caller to a publication, form, or other document, ask questions to determine the best way for the caller to obtain the document and take action accordingly.

    • The document can be downloaded by the caller from the IRS website (www.IRS.gov).

    • The document can be mailed or faxed to the caller.

    • If circumstances require, necessary information from the document can be provided verbally to the caller.

    Reminder:

    Instructional videos are available on www.IRS.gov to assist the caller in the completion of lien certificate applications. The caller can access these videos, and other information about liens, on the website by typing "liens" in the search box and following the links.

  6. When referring a caller to Advisory, determine the best way for the caller to obtain the contact information shown in Publication 4235, Collection Advisory Group Numbers and Addresses, and take action accordingly.

  7. If the request is written, use the Correspondex Letter 3645C, Case Processing Liens.

  8. Do not attempt to answer technical questions about processes not assigned to CLO (e.g., discharges, subordinations). Do not give any opinion on the taxpayer’s chances of securing approval of their request.

Field Office Resource Team (FORT)

  1. The FORT is CLO's technical resource for lien law, ALS coordination, and elevated recording office issues. The FORT is available to answer CLO's questions as they relate to NFTLs, releases, and withdrawals.

  2. The ALS coordinator(s) maintains the ALS system and is available to answer questions and update maintenance items on ALS as well as issue secondary passwords.

  3. Different types of referrals will come into the FORT, usually from the CLO teams, but they may also come directly from the recording office, an employee in the field, the Government Liaison, or other internal and external sources. Referrals may involve, but are not limited to, the following:

    • Recording office fee changes

    • Zip Code updates

    • Billing issues that have not been resolved

    • Technical questions on how to resolve a request

    • Work stoppages due to recording office rejections

    • Suggestions for systemic or procedural improvements

  4. The FORT works with Headquarters staff, as necessary, to address issues beyond their control.

  5. The FORT is also the central point for Taxpayer Advocate Service referrals.

Recording Fee Issues

  1. CLO receives questions regarding recording fee issues and work stoppages due to missing payment, cover sheets, and confusion on documents. The CLO teams work with the recording offices to clarify and correct any problems that may come up. When the recording office and the teams cannot reach agreement, the issue is referred to the FORT.

  2. Referrals of recording office issues should be sent to the FORT by email or on a Technical Referral form. The referral will become the informational copy and all steps and history should be placed onto the referral. Once the FORT takes ownership of the issue, it sends an informational copy of the issue to the Government Liaison (GL), if appropriate.

  3. The FORT researches the issue and attempts to resolve. As needed, the FORT works with appropriate parties, which may include the CLO team, recording office, Finance, GL, Headquarters or Counsel.

    1. When the FORT resolves the issue, the resolution is documented and all appropriate parties are notified

    2. If the FORT cannot resolve the issue, it must work with Finance, GL, Counsel or other appropriate parties to reach resolution. The FORT should send an informational copy of the issue to Headquarters.

  4. The FORT coordinates implementation of the resolution by working with appropriate parties.

    1. If the FORT team member contacts the recording office, a history is placed on the referral. This referral form will be updated by all individuals who take an action on the issue.

    2. If the FORT brings in Finance, Government Liaison, Headquarters or Counsel, the referral form is sent as an historical document for updating.

  5. The FORT maintains a copy of the closed referral documents for one year. These types of issues can be used for analysis and educational purposes.

  6. Issues sent to the FORT for resolution are considered a work stoppage. The FORT must make contact with the recording office within two (2) business days after receipt. Resolution may take longer. Interim guidance must be given to the referring lien team within three (3) business days. Resolution should be achieved as soon as possible.

  7. Document the ALS voucher history as well as the file copy of the BSV if a work stoppage occurs.

Filing Estate Tax Lien Documents

  1. Estate tax liens are filed on Form 668-H or Form 668-J and released using Form 668-I or Form 668-K. Estate tax lien documents are not created on or otherwise loaded to ALS. They are manually prepared by the Advisory Estate Tax Group.

    Note:

    Notices of estate tax lien are different from NFTLs filed against the estate. Forms 668-H and 668-J are for unique liens for special estate tax elections provided by the IRC. The estate can still be liable for regular assessments made under IRC 6321. These would be shown on Form 668(Y)(c). Requests for regular NFTLs should be processed according to standard procedures. See IRM 5.5.9.2, Lien Attachment to Estate Assets, for further details.

  2. Estate tax lien documents are processed through the FORT. Any Forms 668-H, 668-J, 668-I, or 668-K received by the CLO teams (through email or regular mail) must be forwarded to the FORT.

  3. Estate tax lien documents may be prepared in PDF format and should be submitted to CLO with a Form 3210. All estate tax lien documents must be tracked. The tracking includes the following information:

    • Name of estate

    • TIN, using a "V" ( or occasionally "W" ) definer

    • Date received in CLO

    • Originator (requester) of the Form 668-H or 668-J

    • Recording office for filing

    • Date sent to the recording office

    • Voucher number of the billing support voucher (BSV) used to forward to the recording office

    • Date recording information received back in CLO.

    • Date document was sent back to the originator.

    • Whether the Form 3210 included a request for a TC 360 and TC 582 input.

      Note:

      All Forms 668-J should have a TC 360 and TC 582 input. Forms 668-H only have a TC 360 and TC 582 input upon request by Advisory.

  4. Acknowledge receipt of the lien document by returning the Form 3210 to the originator via e-Fax.

  5. If the lien document is received electronically, the FORT RO must sign the lien document for filing.

  6. Generate a separate voucher for the estate tax lien document using the ALS voucher program.

  7. Determine the amount of the recording fee charged by the recording office (to file and to release) by checking the ALS COURT screens. Due to changing fees and other special requirements, if there is no indication that it was done recently, verify the amount by calling the recording office. Document the voucher history with the name of the person who verified the amount.

    1. Input the recording fee for the notice of estate tax lien on the voucher program for use when filing the lien document.

    2. Note the entire recording fee for subsequent posting of the TC 360.

    3. Note the release fee for when the release of the estate tax lien is filed.

  8. There are occasions when the recording office may require special handling for estate tax lien documents. Refer to any special requirements the recording office may have and ensure these requirements are listed on the ALS MAINTXC screen.

  9. Once the voucher is built, send the estate tax lien document(s) to the recording office via regular mail.

  10. When the notice of estate tax lien has been recorded and received back from the recording office, input the TC 360 and TC 582 as applicable.

    1. Input a TC 360 and TC 582 for ALL Forms 668-J filed.

    2. Input a TC 360 and TC 582 for Forms 668-H ONLY when requested by the Advisor, usually on the Form 3210. These inputs will be on MFT 52 for module 000000

      Note:

      The transaction date of the TC 582 should be the date the notice of lien was mailed to the recording office. The TC 360 should be the date the notice of lien was recorded.

  11. When the recorded document is returned, close out the tracking of the document by inputting the recording information and mail the recorded document to the originator using a Form 3210. Update the voucher history on ALS.

  12. Review the tracking document monthly to ensure the notices of estate tax lien submitted to the recording office more than 90 days prior have been recorded and returned. If the lien document was not recorded in this time frame, review the voucher program to determine whether the estate tax lien document was rejected by the recording office.

    1. If the recording office rejected the lien document and it was returned to CLO, update the tracking document to show the latest date the lien document was mailed to the recorder. Work the reject following standard procedures.

    2. If the lien document was never rejected, contact the recording office to determine the status of the filing. Notify the originator of the findings.

  13. Store the tracking information for one year from when the recorded document was returned to the originator.

  14. Process estate tax lien releases in a similar manner as described above.

    1. Review IDRS for a posted TC 582 and, as necessary, input a TC 583 for ALL Form 668-J releases and for Form 668-H releases as requested by the Advisor.

      Note:

      The transaction date of the TC 583 should be the date the release was mailed to the recording office.

  15. Retain Forms 3210 and applicable documents relative to estate tax liens for a minimum of 18 months.

  16. If a request for payoff or release of lien is received on an estate tax lien do not complete the request. Refer the request to Advisory's Estate Tax Group.

ALS Inventory Listings

  1. ALS produces several listings for CLO's review to ensure actions are taken on lien documents in ALS that could not be achieved systemically.

  2. Some of the listings pertain to problems in the systemic posting of information from ALS to Master File, including the following:

    • TC 582, which indicates an NFTL was filed

    • TC 360, which reflects the cost of filing the NFTL plus the future certificate of release

    • TC 971 AC 252, which indicates the CDP notice was issued

    Note:

    ALS and Master File exchange information on a weekly basis to upload the transaction codes for NFTLs processed through ALS. Additionally, ALS receives information from Master File, including notification when modules are satisfied.

  3. Some of the listings pertain to issues in the interface between ALS and other systems, including the Integrated Collection System (ICS) and Automated Collection System (ACS).

TC 360 Rejects

  1. When an NFTL is filed, the taxpayer's account is assessed a TC 360 for the amount the recording office charges for filing and releasing the lien. The TC 360 posts to the NFTL module with the oldest assessment date.

    Note:

    ALS does not send a TC 360 to Non-Master File (NMF) accounts. TC 360 must be manually entered on NFTLs for NMF modules. These NFTLs contain a TIN suffix of "N" .

  2. During the upload process if there is a mismatch between ALS and Master File of information for the module the TC 360 will be rejected. The notification of the rejection will be listed on the TC 360 reject listing.

  3. Two listings are generated to the reports section of the print queue.

    • The listing entitled "17.360_errXX.mmdd" lists accounts on Master File.

    • The listing entitled "NMF_360_17.mmdd" lists accounts on Non-Master File.

  4. The listings are dated and identify the cause for the rejection of the TC 360, the TIN, name control, MFT, tax period and SBSE area. Review the NFTL on ALS and match the entity and tax module information with IDRS.

    If the rejection was caused by a... Then...
    Name control mismatch Review the entity on IDRS to determine the extent of the problem.
    a) If the name was in error, request an amended NFTL. See IRM 5.19.12.2.3, Resolving Errors on NFTLs.
    b) If only the name control is incorrect, edit the name control on ALS and manually assess the TC 360.
    MFT mismatch Create a Not To Be Filed lien record on ALS and manually assess the TC 360. See IRM 5.19.12.2.3.3, Not To Be Filed Lien Record.
    Tax period mismatch Create an amended NFTL on ALS. See IRM 5.19.12.2.3, Resolving Errors on NFTLs

    Note:

    Do not input a TC 360 on accounts that are in IDRS status 12.

  5. When resolving an unpostable TC 360, use the unpostable date for input. If the unpostable date is not available, use the date of the report.

  6. Generally, when the TC 360 is rejected the TC 582 will also be rejected. When working the TC 360 listing, address the unpostable TC 582, if present on IDRS.

  7. NMF requires coordination with the Non-Master File Team in Submission Processing in order to ensure the TC 360 is posted to the account.

  8. This report should be worked within five (5) business days after the date of receipt.

  9. Report time under OFP 810–69130.

TC 971 SIA Error Report

  1. A TC 971 AC 252 is posted to Master File to indicate the CDP notice (Letter 3172) was issued for the NFTL filing. For NFTLs processed through ALS, the TC 971 AC 252 is triggered by the printing of the NFTL and the code is posted to each module on the NFTL.

  2. During the upload process if there is a mismatch between ALS and Master File of information for the module, the TC 971 will reject. The notification of the rejection will be listed on the TC 971 Standardized IDRS Access (SIA) error report.

    Note:

    See the table in IRM 5.19.12.9.1, TC 360 Rejects, for rejection causes.

  3. The listings are dated and identify the cause for the rejection. Generally, when the TC 971 AC 252 is rejected, the TC 360 will also reject and the TC 582 will go unpostable. Follow the procedures in the table in IRM 5.19.12.9.1, TC 360 Rejects, to correct the cause for the rejection.

  4. When an amended NFTL is filed to correct a tax period, a new CDP notice and TC 971 AC 252 will be systemically generated. For all other corrective actions, manually input the TC 971 AC 252 to each module on the NFTL.

    Note:

    When resolving unpostable TC 971 AC 252, use the unpostable date for input. If the unpostable date is not available, use the date of the report.

  5. This report should be worked within five (5) business days after the date of receipt.

  6. Report time under OFP 810-69130.

MODSAT - Satisfied Module Rejection Report

  1. Each week, Master File downloads to ALS a data extraction of the modules that went to status 12 and had an open NFTL indicator (TC 582). Through the MODSAT program, those modules are marked as satisfied on ALS. MODSAT also generates a listing of those modules from the extract that could not systemically be marked as satisfied.

    Note:

    A mirrored report NMF SATMOD Reject Listing is produced from a match done between the automated Non-Master File (ANMF) and ALS. Both reports are worked the same way.

  2. The rejection of the satisfied indicator by ALS may be the result of not finding the corresponding module on ALS due to one or more of the following conditions:

    • TIN does not match with ALS TIN.

    • TIN did match, but MFT and/or tax period did not match.

    • A manual NFTL was filed and not loaded to ALS.

    • A module on a NTBFL was satisfied and the module on the original NFTL must be marked satisfied.

  3. The rejection may also be the result of the module having a condition that limits the systemic release such as a restricted interest/penalty freeze or bad check indicator.

  4. MODSAT produces two different reports, both which generate on Tuesday and appear in the Area 27 print queue on Wednesday.

    • SAT_REJ for normal workable rejects

    • SAT_NF for entity not found rejects

  5. To resolve the items on the listings there are two functions that can be used.

    • SAT is used to satisfy the module and will also close the item from the report.

    • RSAT is used to close the module from the report when the module cannot be found on ALS.

  6. Using the tax module and TIN information from the reject listing, research ALS and IDRS, if necessary, to identify the module on an NFTL in ALS. Take appropriate action according to the table below.

    If... Then use...
    The module is found on ALS and the TIN is correct SAT to input the satisfaction indicator for the module on ALS.
    The module and TIN cannot be located on an NFTL on ALS RSAT with closing code "N" to indicate there no action is needed and remove the case from the report.
    The module is found on ALS but the TIN is incorrect SAT to input the satisfaction indicator for the module on ALS and
    RSAT with closing code "S" to close the module from the listing.
  7. Refer to the ALS User Guide, Chapter 10, Releases, Revocations & Withdrawals, for direction on how to input SAT and RSAT.

  8. Using SAT will cause the satisfaction indicator for the module on ALS and update the RSAT screen. When the lien module is located and the module is satisfied, DO NOT USE THE RSAT SCREEN TO CLOSE THE MODULE FROM THE LISTING.

  9. When searching RSAT by the TIN, there can be multiple modules found. Be sure to address the correct module and do not edit closed modules. Look for the module that has no closing entry.

  10. For SAT to properly generate the closing indicator on ALS, the module information entered to SAT must match that shown on the NFTL. Occasionally, differences in the tax period formats used by Master File and ALS may cause a discrepancy (see example below). When an input to SAT does not take, print a facsimile of the NFTL to verify the tax period ending date and re-input the information to SAT as needed.

    Note:

    A tax period is input to ALS showing an ending date of 12/13/2012. Because Master File uses the format "YYYYMM" for its ending dates, the TC 582 posts on Master File to the module ending 201212. When the module is satisfied, Master File information is downloaded to ALS and the period ending date is converted by ALS to its "MM/DD/YYYY" format as the 12/31/2012. Since this tax period ending date does not match the one input to ALS for the NFTL, the satisfied module indicator rejects.

  11. This report should be worked within five (5) business days after the receipt date.

  12. Time working this report is reported under OFP 810-69130.

ACS/ICS Rejects

  1. The ACS Reject Report is generated each time an ACS/ICS data is loaded to ALS and shows NFTL requests that are rejected, generally due to invalid data and form type, incorrect Zip Code, or recording office not found in ALS.

  2. To access the report from the print spool, select "ACS.mmdd" then select and print "acs.rejects."

  3. CLO actions on these listings are limited to cases rejected for Unknown Zip Code or Court Not Found.

  4. Verify that the Zip Code shown on the listing is correct for the address using the Zip Code Look Up on the USPS web site (http://zip4.usps.com/zip4/welcome.jsp).

    1. If the Zip Code is correct on the request, notify the ALS coordinator to add the Zip Code/Court to ALS.

    2. If the Zip Code is incorrect on the request, take the necessary actions to correct the request.

  5. If the reject was for another reason, take action using the table below.

    If the rejected NFTL was input through... Then...
    ACS Notify ACS support in the Cincinnati Campus about the reject
    ICS Take no additional action. The requester will receive a notice systemically from ICS.
  6. Listings requiring CLO actions should be monitored until all actions are completed. Managerial review should be completed on the original listings to ensure correct closing actions are completed.

  7. Systemic rejects must be resolved by CLO within five (5) business days after the receipt date. Prompt processing allows timely filing of the NFTL.

  8. Report time under OFP 810–69130.

ICS POA Reject
  1. ICS POA rejects are associated with NFTLs systemically loaded to ALS through ICS. They are caused when the POA information is incomplete or contains invalid city, state, or Zip Code information.

  2. To access the report from the print spool select "ACS.mmdd" then select and print "poa_rejects."

  3. Research IDRS to obtain the correct information to complete the POA input.

  4. Using ALS NOTADD, access the SLID shown on the listing and input the correct POA information.

    Note:

    For NFTLs filed in ELF recording offices, POA information cannot be input on ALS until the ELF filings have been approved.

    See IRM 5.19.12.2.1.2, Secondary Taxpayer/Co-Obligor and Power of Attorney.

  5. Listings requiring CLO actions should be monitored until all actions are completed.

  6. The listings must be resolved within five (5) business days after the receipt date.

  7. Report time under OFP 810–69130.

Potential Lost NFTLs

  1. ALS generates the Potential Lost Lien Report (PLL) on the 5th day of each month. The report lists NFTLs that have been created but no recordation date has been entered into the COURT screen on ALS. This report must be worked monthly.

  2. Recording information is used by the recording office to associate any subsequent documents with the original NFTL. ALS prevents subsequent action from being taken on an NFTL without the recording information input.

    Example:

    An NFTL is filed in XYZ county on page 435 of book 1289. The IRS subsequently wants to withdraw the NFTL. For the recording office to show the withdrawal of the appropriate NFTL, they must reference the recording information of the original NFTL.

  3. Several things can happen to cause an NFTL to appear on the PLL.

    • Recording offices can take days, weeks and, at times, months to record the NFTL and return it to the IRS. If the recorded NFTL is not timely returned, recording information cannot be input to ALS.

    • In certain situations, a revenue officer may manually prepare an NFTL and hand carry it to the recording office. Revenue officers are required to send the recording information to CLO so ALS can be updated with the information. Sometimes, the recording information is not sent to CLO for input to ALS.

      Note:

      A SLID beginning with 27xxxxxxx that has not appeared on a voucher may indicate that it was hand carried by a revenue officer.

    • On occasion, recording information for an NFTL may be input incorrectly under the wrong SLID, which causes the NFTL to appear as not being recorded.

  4. The PLL shows NFTLs that were prepared at least 90 days prior to the listing. This time frame is used to allow for the recording process to be completed. NFTLs that require a subsequent action within 90 days of the preparation date must be worked immediately. Do not wait for the NFTL to show up on the PLL.

    Example:

    Advisory approves and requests a withdrawal on an NFTL that was prepared 2 weeks ago. The NFTL has not come back from the recording office. Research must be done to secure the recording information so the withdrawal request can be completed.

  5. Some issues that cause a lost condition can be prevented. When working the 668Z Listing, immediate research and corrective action must be taken. Do not wait until the NFTL has reached the PLL to complete the research. See IRM 5.19.12.3.3.2, Resolving the 668Z Listing.

  6. Take the following actions to secure recording information when working the PLL.

    1. Ensure any CRD from the recording office has been input to ALS by checking for any batches of recording data received and awaiting input.

    2. Verify whether the NFTL was rejected by the recording office and has been re-sent, causing a delay in the recordation.

    3. Review the ALS and voucher history to determine if the NFTL was pulled from the batch for some reason.

    4. Check to see if the batch was returned from the recording office for corrections and, if so, whether enough time has passed for the recording information to have been received.

      Note:

      Review of the voucher program will show if all other NFTLs on the voucher received recording information. This information should always be verified at the time recording information is entered. See IRM 5.19.12.4.1.1, Court Recording Information.

    5. Research the status of the NFTL using an available search engine such as Accurint, Netronline, or the local recording office website.

    6. If the NFTL was filed by Field Collection, contact the RO and ask if they have the recording information.

    7. When all the above actions have been completed and questions regarding the recording data remain, contact the recording office, explain the situation, and request the information. If the recording office will not give the information, refer the situation to the FORT for resolution.

  7. When the CRD is secured for the NFTL, input it to ALS.

    1. If the lien is released, print the release and add it to the next voucher for the recording office. If no voucher is generated the next print day, generate one for the recording office.

    2. For information on input of CRD for any ELF recording offices, see IRM 5.19.12.12.1, Manual Input of Recording Information to ELF Offices.

  8. When the CRD cannot be determined for the NFTL, check IDRS for the status of the account and the modules. It may be appropriate to remove the NFTL from ALS, which will place the NFTL into "lost lien" status. Take the necessary actions as shown in the table below.

    Caution:

    All available methods of research must be utilized before removing the NFTL from ALS. Once an NFTL is removed, a release of the lien will not be generated.

    If IDRS shows... And the modules are in.. Then...
    The NFTL modules have no balance due Status 12 Remove the NFTL as a lost lien
    All the NFTL modules have a balance due Any status except 72 Print the NFTL and add to the next voucher for the recording office. If no voucher is generated on the next print day, generate one for the recording office.
    All the NFTL modules have a balance due Status 72 Remove the NFTL from ALS as lost and
    secure email the PLL Notification Memo (Exhibit 5.19.12-3) to the function assigned the case to determine if a replacement NFTL request is needed.
    Only some of the NFTL modules have a balance due Any status except 26, 71, or 72 Remove the NFTL from ALS as a lost lien and
    create a new NFTL for the balance due modules using available information.
    Only some of the NFTL modules have a balance due Status 26, 71, or 72 Remove the NFTL from ALS as lost and
    secure email the PLL Notification Memo (Exhibit 5.19.12-3) to the function assigned the case to determine if a replacement NFTL request is needed.

    Reminder:

    New or replacement NFTLs should not include modules that have no balance due. Do not file a replacement NFTL if a certificate of release will immediately follow.

    Status Refer to...
    26 RO
    71 Centralized Offer in Compromise (COIC)
    72
    with TC 520 cc 60-67, 81, or 83-89
    Centralized Insolvency Operation (CIO)
    72
    with TC 520 cc 70-75 or 80
    Advisory office for the applicable state
  9. For any NFTLs marked as "lost" on ALS and not being re-sent, reverse the original TC 360 and input a TC 583 DC 4 on IDRS. If a new NFTL is subsequently created, a new TC 360 and 582 will be generated.

  10. If a PLL was worked and an NFTL was re-sent for recordation, due to the timing it may show up on the following month's PLL. This is considered a roll-over and will not be overage.

  11. ALWAYS input a history on the Potential Lost Lien Report and ALS, if applicable, stating "Lost Lien worked" and what action was taken. For example, a history could state: Lost lien research was completed using (Accurint, Netronline, and/or recording office web page) on (give date) closing lien from lost lien report.

  12. Receipts will be counted for each team for the daily inventory. A closure occurs when the Court Recording Data is entered or the NFTL status is changed to “lost” in ALS.

  13. The FORT is generally responsible for printing the PLL, distributing it to the applicable teams to work, and monitoring the overall counts. The CLO teams are responsible for resolving the NFTLs on the PLL, monitoring their inventory, and elevating issues of chronically-slow recording offices.

  14. Report time working PLL issues under OFP 810–69130.

GUF Unpostables

  1. The Generalized Unpostable Framework (GUF) provides listings of the unpostable TC 582 cases. These unpostable listings are located on Control D, GUF 5547 file.

  2. The FORT accesses the Control D GUF files weekly to print, assign and distribute to the CLO teams. The teams are responsible for resolving the unpostables.

  3. Common unpostable resolutions are found in Exhibit 5.19.12-1, Job Aid for Unpostable TC 582. The resolutions shown may not fit every situation; each case resolution is based on the individual situation.

  4. In most cases, the TC 582 should be re-input using the date of the unpostable TC 582, which should be approximately seven (7) calendar days within the creation date of the NFTL.

    1. If there is no unpostable date, use the date the NFTL was created.

    2. If the TC 582 continues to unpost (i.e., does not post after two inputs), DO NOT keep re-inputting the TC 582. See your Manager/Lead for guidance.

  5. If requesting an amended NFTL to correct the unpostable condition review ALS to ensure court recording data is present. If CRD is not present, use the best research methods available to obtain recording information. See IRM 5.19.12.2.3, Resolving Errors on NFTLs.

  6. Be sure to close the IDRS control base after IDRS actions are completed.

  7. When research shows that an account has not been established (prompt assessments), close the IDRS control base and notify the revenue officer that the NFTL filed indicator on IDRS could not post. The revenue officer is responsible for monitoring IDRS for establishment of the account and ensuring that the TC 582 and TC 360 are posted. See IRM 5.12.7.12.2, Lien Filed Indicator (LFI).

  8. When the account is on NMF, contact the Non-Master File Team in Submission Processing to ensure the TC 582 is posted.

  9. While researching, if it is identified the TC 360 and 971 AC 252 also did not post, research the unpostable code in Document 6209 and resolve the unpostable condition appropriately.

  10. Document actions taken on the Unpostable Excel sheet.

  11. Unpostables should be closed within five (5) business days after receipt of the listing.

  12. Report time closing unpostables under OFP 810-69130.

ALS Maintenance

  1. Maintenance of the ALS database is generally the responsibility of the ALS functional coordinator.

  2. All functions of the system must be monitored by management to ensure all NFTLs and related documents processed through ALS are produced timely and correctly.

  3. All available system logs must be monitored and steps taken to notify management if irregularities exist so that corrective actions can be taken.

    1. Logs are located in the ALS Lien Application Menu and the Print Lien Document Queue Menu under ALS LOG FILES.

      Note:

      The reports and logs generated on the Automated Lien System are specified in the ALS User Guide, Chapter 15, ALS Logs and Reports.

  4. IRM 5.19.12.11.1 through IRM 5.19.12.11.6 address common maintenance issues addressed by the ALS coordinator. For details on ALS tables, logs, and reports see the ALS User Guide.

Menus

  1. A menu is a set of options used to move from place to place within an automated application. Each option will either execute a program or take the user to another menu.

  2. Generally, menus are standardized based on the position type and permission level of the employee. Menus can be developed by the ALS coordinators as needed. Refer to the ALS User Guide, Chapter 15, ALS Coordinator Guide, for information on how to create menus.

    Reminder:

    Literal commands can be entered from the menu prompt to go directly to a specific function. See the ALS User Guide for details.

Employee Access and Maintenance

  1. Each employee using ALS has permissions specific to his/her job responsibilities. For a listing of the normal permissions allowed for each position type refer to the exhibit in IRM 5.12.1-1, ALS Permissions Chart.

  2. Employees requesting access to ALS must complete an Online 5081. Employees will not be established on ALS if they do not complete the Online 5081. See the ALS User Guide, Chapter 2, Getting Started, for details on requesting ALS access.

  3. Employees needing more than general research capabilities on ALS must request a secondary password in ALS to gain the additional functionality. This secondary password is requested with the Online 5081 requests, but is approved by the ALS Coordinator.

  4. The ALS Coordinator is notified by email when there are requests awaiting their approval and approves the Online 5081 as the system administrator.

  5. When the requests are not complete with all necessary information, the request is rejected by the ALS Coordinator and the additional information requested.

  6. Generally, the permissions established for the employee by their position type should not be changed. If a variation is justified, modification of the existing permissions (or the deletion of permissions, as necessary) is done through the Online 5081 system by the ALS Coordinator.

    Exception:

    CLO employees can request change to established permissions through an email to the ALS Coordinator in FORT.

  7. When an employee uses a pseudonym, the employee must identify their real name as well as the previously-approved pseudonym on the online 5081 request.

  8. Request for password reset to ALS (i.e., UNIX password) is done through the Online 5081 system or calling the Enterprise Help Desk. Request for second level password reset is completed by emailing the ALS Functional Coordinator at *SBSE CLO FORT.

Court Tables

  1. Within ALS are tables that include all recording offices available for document filing. These recording offices ("courts" ) are assigned a five or six-digit ID number.

  2. The court table is maintained by the ALS Coordinator. Refer to MAINTXC screen on ALS for the appropriate court number. Because the court numbers are linked to all the historical documents, NEVER REMOVE A COURT ID FROM ALS. Always coordinate with the ALS programming staff if it is believed a ID number should be removed.

Zip Code Tables

  1. When an NFTL is created in ALS, the filing location defaults to the recording office corresponding with the taxpayer's Zip Code. These default filing offices are determined by the Zip Code tables. Occasionally, due to changes in Zip Code alignment, the use of previously unused Zip Codes, or restrictions regarding the Zip Code, the tables must be updated.

  2. The ALS Coordinator is responsible for maintaining the Zip Code tables. The ALS function Maintxz is used for this purpose.

  3. The Coordinator may receive referrals regarding unknown or incorrect Zip Codes; however, most updates are driven by the Zip Code report portion of the ACS/ICS rejects. See IRM 5.19.12.9.4, ACS/ICS Rejects.

  4. Change requests should include the following:

    • Zip Code, including the 4 digit extension, when necessary

    • The recording office that has been identified as the court of record

    • If the Zip Code is currently in ALS, to what recording office the Zip Code points and to what it should be changed

    • If the request is for an addition of a new Zip Code, to which recording office the Zip Code should point.

  5. When requests for changes or additions are made, verify the Zip Code is not in a disaster area that has had enforcement activity suspended.

    1. If the Zip Code is in a disaster area, input the Zip Code and the freeze so that no new NFTLs can be filed.

    2. If in doubt whether the Zip Code is affected (e.g., an entire county is not impacted), contact the Disaster Coordinator for guidance.

  6. Keep a listing of all Zip Code changes. Submit these changes quarterly to the Headquarters Analyst for ICS, so that ICS can be updated with the changes and additional Zip Codes. ICS updates their system quarterly.

POD Key Listing

  1. Each week, ALS receives an extract from ICS of its nationwide employee table. Based on the current employee ID, name and new employee number, badge number, area code and phone number, information in ALS will be updated to match information transmitted by ICS.

  2. ICS employee information is updated systemically in ALS, with the exception of the Post of Duty (POD) code. Use Maintro to add the POD code. Also use Maintro to add or modify information for all other ALS users in the same POD.

  3. Requests for POD code updates outside the systemic reports should be on the RO POD ALS Update Form and emailed to *SBSE CLO FORT.

  4. Revenue Officers cannot file NFTLs until the POD is corrected. It is imperative the report is worked by the FORT on the day it is generated.

Voucher Removal/Correction

  1. Routine corrections to vouchers (e.g., changing fee, adding/deleting lien document) can be done by the CLO teams. See IRM 5.19.12.3.4, Editing the Billing Support Voucher. Significant changes to the voucher or the removal of it are referred by the teams to the ALS coordinator by sending an email to *SBSE CLO FORT.

  2. There are occasions when it is necessary to remove a voucher from ALS. The Coordinator can remove the voucher, but it is only done when both the following have occurred:

    • It has been verified that the voucher has not been mailed to any of the recording offices on the voucher and no mailing date has been input; and

    • The request has been approved by the CLO Department Manager.

  3. The ALS Coordinator also corrects dates that have been entered into the date field of the voucher program. Permission to change the date may be given to CLO Department Managers; however, tracking of these changes should be maintained by the ALS Coordinator.

  4. Requests for voucher changes and the tracking of the vouchers should contain the following:

    • Voucher number

    • Recording offices involved

    • Reason for removal/correction

    • Department Manager approving the request

  5. Vouchers being removed must be tracked by the FORT to verify they have not been previously requested and for review purposes.

  6. The listing of voucher changes is maintained for 6 months.

Electronic Lien Filings (ELF)

  1. The majority of lien documents are filed by paper and mailed through the USPS. There are some recording offices that do receive information electronically. Non-paper filings are considered Electronic Lien Filings (ELF).

  2. The recording offices that currently have an electronic filing process are:

    • All recording offices in the state of Minnesota

    • United States District Court (USDC) in Boston, MA

    • Secretary of State (SOS), Connecticut

    • Secretary of State (SOS), California (partial)

    • City of New York (partial)

  3. Information is exchanged with the ELF recording offices in various ways by ALS. Also, not all lien documents can be provided electronically with all the recording offices. For example, revocation notices and amended NFTLs for Minnesota recording offices must be filed by hard copy (paper) but those same documents for the USDC can be filed electronically. See the ALS User Guide, Chapter 13, Electronic Lien Filing, for further details on the differences between the ELF recording offices.

  4. The FORT has general oversight responsibility for the ELF exchange process; however, the CLO Teams are responsible for the normal processing of the lien documents. Coordination between the person delivering the ELF files and the team assigned the recording office is essential.

  5. NFTLs prepared for ELF recording offices must be approved from the ALS queue each Tuesday and Thursday by the applicable Team Manager. The NFTLs being approved should be for the same range of dates as all other lien documents in that print batch. Approval on ELF is equivalent to the print process in triggering the CDP notice.

    1. The approval of ELF filings produces a document file the day after the approval is done. This file is delivered to the recording office for the recordation of the lien documents.

      Reminder:

      NFTLs must be approved prior to the input of the POA or Co-Obligor information to ALS.

    2. Lien releases do not go through an approval process since they do not trigger a CDP notice. Each day a file is generated for the prior day. When delivery is made to the recording office there will be multiple release files and one NFTL file.

  6. Prepare vouchers prepared for the ELF recording offices using standard procedures, with certain exceptions as noted below.

    1. Ensure the voucher for the ELF recording office matches the NFTLs approved and other lien documents for filing.

    2. Identify the voucher for ELF recording offices with the payment definer of "E" .

    3. Date stamp the voucher with the date the file is delivered.

  7. Maintain a log of all files sent to, and returned from, the ELF recording offices with the number and type of errors or rejected records.

Manual Input of Recording Information to ELF Offices

  1. NFTLs for ELF recording offices are electronic files on ALS. Recording information cannot be manually input into an electronic file using the regular CRD process. The ALS Coordinator must add the recording information into a file for upload to ALS.

  2. If an NFTL filed through ELF does not show recording data but through research the data is located, send an email to the FORT with the SLID number and court recording data found.

  3. When recording information files are uploaded to ALS and notification is given during the upload process that some of the recording information cannot be loaded, review the information. Below are some common scenarios that could occur and how to resolve.

    If... Then...
    There is a transposition of numbers (i.e., SLID not correct) a) Notify the recording office of the situation.
    b) Determine which SLID the information is for.
    c) Correct the file and upload the information again.
    The recording information was previously loaded Determine if this is a duplicate filing and take appropriate action. See IRM 5.19.12.2.4, Duplicate Filings of NFTL.
    The recording information is for a release of lien and not the NFTL itself No action is required.

Special Circumstances

  1. In this section are types of special circumstances that require special handling or contact with the appropriate function and/or coordinator.

Signature of Lien Documents

  1. Although not required for legal sufficiency, lien documents are signed by an IRS official prior to filing to facilitate the recordation process with the recording offices. The lien documents printed in the CLO for recordation and taxpayer copies of the documents printed at CPS are imprinted with a digitized signature of a delegated official. See IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates.

  2. When the person whose signature is on the lien documents changes, programming must be updated in ALS and at CPS with the new signatory's name, title, and signature

  3. CLO management is responsible for notifying Collection Policy, the ALS programming staff, and/or other applicable when changes to the signature are needed.

Disaster Relief

  1. When a disaster occurs, the President can declare a state, municipality, or other locale as a federal disaster area and invoke the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which authorizes tax relief to affected taxpayers. The Disaster Assistance & Emergency Relief program provides guidance for responding to federally declared disasters. See the following for additional information:

    • IRM 25.16.1, Disaster Assistance and Emergency Relief, Program Guidelines

    • IRM 5.1.12.2, Disaster Assistance and Emergency Relief

    • Disaster Assistance and Emergency Relief Program page on My SB/SE

    • Federal Emergency Management Agency (FEMA) internet page

  2. When federal tax relief is authorized, a disaster freeze code is placed on the affected taxpayers’ accounts for a specified period of time. The type of freeze code reflects the relief that has been granted.

    • An -O freeze provides systemic penalty, interest, and compliance relief and stops most collection actions, including NFTL filings.

    • An -S freeze provides systemic penalty and interest relief, but does not automatically provide compliance relief nor does it stop collection actions.

  3. The FORT coordinates the impact of the disaster on lien processing with guidance from Headquarters, as needed.

Disaster Relief - FORT Role
  1. The FORT (or ALS Coordinator) is responsible for updating ALS and coordinating CLO efforts to prevent the filing of new NFTLs in the disaster areas. The actions normally taken by the FORT (or ALS Coordinator) are described in this subsection.

  2. Upon receipt of an -O freeze designation, secure a list of affected zip codes from the FEMA Disasters web page. Verify all the zip codes within the county/parish/jurisdiction are included in the disaster relief.

  3. Determine if the recording office in the disaster area is conducting business so other lien documents (e.g., releases, refiles) can be mailed. If the impacted zip code relates to an ELF recording office, contact Headquarters on how to proceed

  4. Using the ALS disaster maintenance screen (Maintdisv), input the zip codes affected by the disaster. Coordinate with the ALS programmers to verify all zip codes are properly marked.

    Note:

    ALS systemically blocks NFTL requests in zip codes marked as a disaster area.

  5. Notify CLO employees that the -O freeze is in effect and any requests for NFTL filings in impacted areas should be rejected to the requester, unless the requests are approved by management per disaster procedures.

  6. Provide guidance to CLO employees for pulling NFTLs recently generated or printed for (but not mailed to) recording offices for the designated disaster area.

    1. Give a listing of impacted SLIDs received from the ALS Programmers to the responsible team for deletion from ALS.

    2. Advises the responsible team to generate and process a voucher for lien documents for the SOS (when applicable) using the appropriate range of dates. Be sure the range of dates covers all documents that were pending in the queue.

  7. The ALS Coordinator takes the following actions.

    1. Request the ALS Programmers remove the impacted recording offices from "voucher only" for the identified voucher numbers.

      Note:

      If the state has a Secretary of State (SOS) filing requirement, ALWAYS include the SOS voucher in the request.

    2. Zip Codes. When all Zip Codes are not impacted, request a listing from the ALS Programmers of the SLIDs, entity, Zip Codes, and the names of the requesters of the NFTLs for the impacted recording offices.

    3. Notify the responsible team that the ALS programmers have removed the NFTLs in the impacted recording offices from the voucher (include SOS, if applicable) and advise the team to process the voucher.

      Note:

      When the voucher is processed, only the recording offices that were not removed will be generated. The documents for the removed recording offices will remain in the queue.

    4. Match the requested listing(s) against the impacted Zip Codes. When the -O freeze is set, the CLO team will use this listing to delete the NFTLs from ALS and notify the requester of the removal of the NFTL.

      Reminder:

      DO NOT give this listing to the teams for deletion of the lien until the -O freeze is set.

    5. Notify the teams that the NFTL vouchers for the state can be processed. This excludes impacted States and, when applicable, SOS.

  8. Establish a control to monitor the disaster freeze period so the freeze indicator on ALS can be promptly reversed once the disaster relief time frame has passed.

    Reminder:

    It is imperative that ALS maintenance tables for recording offices (Maintxc), zip codes (Maintxz), and disaster freezes (Maintdisv) are kept current and accurate as these tables interact to ensure disaster freezes are applied to the correct filing locations.

Disaster Relief - CLO Teams Role
  1. As referenced in the preceding subsection, new NFTLs generally are not filed in a disaster area; however, in certain instances, a new NFTL may be filed with management approval. In these instances, the NFTL request must be manually input to ALS. CLO should process these requests as shown below.

    1. Upon receipt of the manual request, review the request for management approval and contact the requester if approval is not evident.

    2. Prepare separate BSVs for the new NFTL and the other lien documents for the recording office.

  2. Upon notification from the FORT, the CLO team takes the following actions.

    1. Returns all requests for NFTL filings in the impacted areas to the requesters with an explanation that the -O freeze is in effect and the NFTL cannot be input.

    2. Deletes the NFTLs on the ALS vouchers for the impacted areas that were held pending the disaster determination.

    3. When the entire county is not impacted, uses the listing of impacted SLIDs and Zip Codes provided by the ALS Coordinator to delete the NFTLs.

    4. Processes the vouchers as normal once all impacted SLIDs have been removed.

      Note:

      Only the unaffected recording offices should be shown on the voucher.

    5. Generates specific voucher(s) for the impacted recording offices.

  3. Follow standard printing and mailing procedures for recording offices not in the disaster area. Review BSVs for affected recording offices to ensure new NFTLs are not inadvertently included.

Pending Collection Activity Suspension (-O Freeze)
  1. When a disaster has occurred and the decision for the suspension of collection activity has not yet been made, documents should be processed as normal.

  2. When the FORT is alerted by Headquarters that the potential exists for the -O freeze on IDRS, the FORT notifies the CLO teams of the situation and what Zip Codes, counties, or states are potentially impacted.

  3. The FORT notification to the CLO teams should state the following:

    • A decision is pending on the suspension of collection activity (-O freeze).

    • Requests for NFTL creations in the impacted areas should be held pending the -O freeze decision.

    • The teams responsible for the impacted areas should generate two vouchers for the impacted recording office - one for new NFTL filings and one for other lien documents (e.g., releases, refiles). Immediately send the voucher numbers to the ALS Coordinator

    • New NFTLs must not be printed for the disaster areas.

    • Processing requests for releases. withdrawals, and other lien documents, and their vouchers, should continue.

    • The FORT will provide additional information as soon as it becomes available.

  4. Upon notification from the FORT, the CLO team for the impacted area takes the steps below.

    1. Generate two vouchers for the impacted recording office(s)--one for new NFTL filings and one for releases and other documents.

      Reminder:

      Be aware of NFTLs against a taxpayer in a disaster area filed in other locations.

    2. Immediately relay the voucher numbers to the ALS Coordinator.

    3. Immediately notify the ALS Coordinator of the number of NFTLs in each impacted recording office.

    4. Process the vouchers for releases and other documents as normal.

  5. Following these procedures ensures the NFTLs within the ALS system are held pending the decision to freeze the accounts and enables the site to timely process the lien release filings.

  6. When the -O freeze is set, follow the procedures in IRM 5.19.12.13.2.1, Disaster Relief - FORT Role, and IRM 5.19.12.13.2.2, Disaster Relief - CLO Teams Role. If the -O freeze is not set, the CLO teams generate vouchers for the recording offices and process as normal.

  7. Regardless of whether an -O freeze is set or not, normal printing schedules should be followed (i.e., Tuesdays and Thursdays).

Identity (ID) Theft

  1. CLO may encounter situations or receive inquiries from internal and external customers regarding identity theft. CLO refers all cases regarding identity theft to the function assigned the case, which is then responsible to work the case per instructions in their respective IRM (e.g., IRM 5.1.28, Identity Theft for Collection Employees.

    If the account status is... Refer to...
    26 RO
    71 Appropriate OIC Unit
    72 with
    TC 520 cc 60-67, 81, or 83-89
    Centralized Insolvency Operation
    72 with
    TC 520 cc 70–75, 80, or 82
    Advisory office where the taxpayer resides
    72 with
    TC 520 cc 76 or 77
    Appeals office
    Any other status with a
    MFT 31 with a TC 971 AC 104
    Innocent Spouse Unit
    Any other status or condition and NFTL filed Advisory office where the taxpayer resides
    Any other status or condition and no NFTL filed ID Theft Team through the Team Manager or Lead
  2. Document the referral in the ALS history, including the date the referral is made, the status, and name of the referred employee or office.

  3. If the assigned office determines that action is necessary to address an NFTL filed against a victim of identify theft, the office will submit a request to CLO following standard procedures. Generally, the request will be for the release of an erroneous NFTL, but in some instances it may be for a withdrawal of the NFTL. See IRM 5.12.3.10, Erroneous NFTL in ID Theft Situation.

  4. For any external inquiries on ID Theft cases, follow high risk disclosure rules. See IRM 21.1.3.2.4, Additional Taxpayer Authentication.

  5. Process requests for release or withdrawal following standard procedures.

Government Shutdown

  1. When there is a lapse in appropriations for government spending, lien processing generally is suspended. Lien documents cannot be sent to the recording office if funds are not available to pay for the filings. Other CLO duties may continue during the shutdown as long as additional expenses are not incurred. The other duties performed are determined by management based on available staffing and may include processes such as inputting data to ALS, providing payoff letters, and generating releases for taxpayers to file (when requested by the taxpayer).

  2. Prior to an anticipated shutdown, representatives from CLO, Policy, ALS, and other impacted stakeholders should conference to coordinate a shutdown plan. Depending on the situation, the plan may address the inputting of new NFTLs and the printing of recently-created documents. Usually, immediately before the anticipated shutdown, CLO stops creating new NFTLs pending the shutdown resolution and prints all the lien documents in the print queue and processes them for filing.

  3. Upon shutdown, CLO stops inputting NFTL and most other manual requests to ALS.

    Exception:

    CLO should continue inputting requests for lien releases and refiles, as resources allow.

  4. During the shutdown, ALS systemic processes normally continue, including the systemic interface with Master File. As a result, lien releases will continue to be generated in ALS, even though the releases cannot be filed during the shutdown. ALS’ systemic interface with CPS is also operational so lien notices for the pre-shutdown NFTLs will be issued by CPS, as their resources allow. The systemic generation of NFTLs through the ACS/ALS interface may or may not cease, depending on the shutdown plan.

  5. The actions taken when the government resumes operations is dependent on the length of the shutdown. Generally for brief shutdowns, CLO resumes normal processing. For longer shutdowns, CLO may need to prioritize their processes, such as immediately printing releases generated during the shutdown and reviewing accumulated mail for release requests. A conference of the stakeholders may be necessary to devise a resumption plan.

Judicial Foreclosures

  1. CLO may receive requests from the United States Attorney's Office (USAO) for NFTL information relative to judicial foreclosure cases. These requests may be received by fax, E-fax, mail, email, or telephone.

  2. Requests are worked in accordance with the procedures found in IRM 5.12.4.2, Judicial Foreclosures.

Job Aid for Unpostable TC 582

This Exhibit shows the most common Master File unpostable conditions associated with the systemic upload of Transaction Code (TC) 582 from ALS. See IRM 5.19.12.10, GUF Unpostables. The conditions, broken down by IMF and BMF, are listed by their Unpostable Code (UPC), Reason Code (RC), and Summary Description.

Each condition is followed by a table that describes common problems that may have caused the unpostable (as discovered through research of IDRS and ALS) and the most likely resolution for those problems. The described resolutions may not fit every situation but may vary based on the case facts. In most cases, the TC 582 should be re-input to IDRS with the date of the unpostable TC 582.

Reminder:

FOR ALL CASES, the IDRS control base must be closed after IDRS actions are completed.

Individual Master File (IMF)

151-0 No entity present or account not on IDRS (MFT 30, 31, 55)

Research Shows... IDRS Resolution ALS Resolution
Name control on ALS is incorrect Input TC 582 Correct the name control
TIN on the NFTL is incorrect Input TC 582 on correct module and close control base on incorrect module Create a Not To Be Filed lien record to correct the TIN
MFT 55 or 31 module not established when TC tried to post Input TC 582 No action needed

152-1 Name control mismatch (Name line incorrect)

Research Shows... IDRS Resolution ALS Resolution
Name control on ALS is incorrect Input TC 582 Correct the name control
Name on the NFTL is incorrect No action needed Request an Amended NFTL to correct the name
TIN on the NFTL is incorrect Input TC 582 on correct module and close control base on incorrect module Create a Not To Be Filed lien record to correct the TIN

159-0 Attempts to create a module MFT 30, 31, 55 (Module is not on IDRS)

Research Shows... IDRS Resolution ALS Resolution
MFT on NFTL/ALS is incorrect Input TC 582 on correct module and close control base on incorrect module Create a Not To Be Filed lien record to correct the MFT
Tax period on NFTL is incorrect Close control base on incorrect module Request an Amended NFTL to correct the tax period
An MFT 13 or 55 module was created by the unpostable and the correct MFT 30 module has both a posted TC 240 and TC 582 Close control base on incorrect module No action needed
An MFT 13 or 55 module was created by the unpostable and the correct MFT 30 module does NOT have a posted TC 240 and TC 582 Input TC 582 on correct module and close control base on incorrect module No action needed
Module was not established when TC tried to post Input TC 582 No action needed

162-0 Period ending date is different

Research Shows... IDRS Resolution ALS Resolution
Ending date for the tax period on the NFTL is incorrect Close control base on incorrect module Request an Amended NFTL to correct the tax period

186-0 Account transferred out (Status 29)

Research Shows... IDRS Resolution ALS Resolution
TC 400 and TC 608 are on the module No action needed Mark period satisfied or release lien, if all periods on the NFTL are satisfied
TC 400 but no TC 608 is on the module and module is satisfied on ANMF No action needed Mark period satisfied or release lien, if all periods on the NFTL are satisfied
TC 400 but no TC 608 is on the module and module is open on ANMF No action needed No action needed

188-0 Module creating transaction not containing name information input to module earlier than the earliest name line

Research Shows... IDRS Resolution ALS Resolution
Tax period on NFTL is incorrect Input TC 582 on correct module and close control base on incorrect module Request an Amended NFTL to correct the tax period
NFTL is correct, but the module was not established when TC tried to post Input TC 582 No action needed

197-0 Attempts to post to a module that was placed on retention register

Research Shows... IDRS Resolution ALS Resolution
Tax period on NFTL is incorrect and module is not satisfied MFREQ correct module onto IDRS, if necessary and close control base on incorrect module Request an Amended NFTL to correct the tax period
Tax period on NFTL is correct and module is not satisfied MFREQ correct module onto IDRS, if necessary, and input TC 582 No action needed
Tax period on NFTL is correct and module is satisfied MFREQ correct module onto IDRS, if necessary, and input TC 582 Mark period satisfied or release lien, if all periods on the NFTL are satisfied


Business Master File (BMF)

301-1 Failed to match TIN with an account on BMF

Research Shows... IDRS Resolution ALS Resolution
Name control on ALS is incorrect Input TC 582 Correct the name control
TIN on NFTL is incorrect Input TC 582 on correct module and close control base on incorrect module Create a Not To Be Filed lien record to correct the TIN

303-1 Failed to match the entity name control

Research Shows... IDRS Resolution ALS Resolution
Name control on ALS is incorrect Input TC 582 Correct the name control
Name on the NFTL is incorrect No action needed Request an Amended NFTL to correct the name

309-1 Attempts to establish a tax module

Research Shows... IDRS Resolution ALS Resolution
Tax period on NFTL is incorrect Close control base on incorrect module Request an Amended NFTL to correct the tax period

311-1 Account transferred out (Status 29)

Research Shows... IDRS Resolution ALS Resolution
TC 400 and TC 608 are on the module No action needed Mark period satisfied or release lien, if all periods on the NFTL are satisfied
TC 400 but no TC 608 is on the module and module is satisfied on ANMF No action needed Mark period satisfied or release lien, if all periods on the NFTL are satisfied
TC 400 but no TC 608 is on the module and module is open on ANMF No action needed No action needed

390-5 Mismatch TIN with master file or no return posted to module

Research Shows... IDRS Resolution ALS Resolution
TIN on NFTL is incorrect Input TC 582 on correct module and close control base on incorrect module Create a Not To Be Filed lien record to correct the TIN
Tax period on NFTL is incorrect Close control base on incorrect module Request an Amended NFTL to correct the tax period
Module not established when TC tried to post Input TC 582 No action needed

Glossary of Common Acronyms and Terms for Centralized Lien Operation

Acronym Definition
ACS Automated Collection Service
AIS Automated Insolvency System
ALS Automated Lien System
AMS Accounts Management System
BMF Business Master File
BSV Billing Support Voucher
CAF Centralized Authorization File
CAP Collection Appeals Program
CCP Centralized Case Processing
CDP Collection Due Process
CIO Centralized Insolvency Operation
CLO Centralized Lien Operation
COIC Centralized Offer in Compromise
CPS Correspondence Production Services
CRD Court Recording Date
CSED Collection Statute Expiration Date
DDIA Direct Debit Installment Agreement
DPC Designated Payment Code
EFT Electronic Fund Transfer
EIN Employer Identification number
ELF Electronic Lien Filing
FMS Financial Management Service
FORT Field Office Resource Team
ICS Integrated Collection System
IDRS Integrated Data Retrieval System
IFS Integrated Financial System
IMF Individual Master File
IRC Internal Revenue Code
IRM Internal Revenue Manual
LFI Lien Filed Indicator
LLC Limited Liability Company
MCAR Mutual Collection Assistance Request
MF Master File
MFT Master File Transaction
MOIC Monitoring Offer in Compromise
NAOC NFTL After Original CSED (aka Portland Lien)
NFOI Non-Field Other Investigation
NFTL Notice of Federal Tax Lien
NMF Non-Master File
NTBFL Not To Be Filed Lien Record
OIC Offer In Compromise
PDF Portable Data Format
PII Personally Identifiable Information
PLL Potentially Lost (Notice of) Lien
POA Power of Attorney
POD Post of Duty
POL Payoff Letter
RO Revenue Officer
SERP Servicewide Electronic Research Program
SFR Substitute for Return
SLID Serial Lien Identification Number
SSN Social Security Number
TAC Taxpayer Assistance Center (Walk-in)
TAS Taxpayer Advocate Service
TC Transaction Code
TFRP Trust Fund Recovery Penalty
TIN Taxpayer Identification Number
TM Territory Manager
USDC United States District Court
USPS United States Postal Service
WDAR Withdrawal of NFTL After Lien Release
Generic Term Common Reference
County Recording office (e.g., county recorder)
Court Recording office (also an ALS command)
Field Field Collection
Release Certificate of Release of Federal Tax Lien
Revocation Revocation of the release of the federal tax lien
Spool ALS print repository
Voucher Billing Support Voucher (also an ALS command)
Withdrawal Withdrawal of Notice of Federal Tax Lien

Sample Notification of Lost NFTL

This memorandum template is for use by CLO when contacting Field employees about lost NFTLs. See IRM 5.19.12.9.5, Potential Lost NFTLs.

Notification of Lost Notice of Federal Tax Lien


Date:
From: Centralized Lien Operation, Team ------
To:

Taxpayer:
TIN:
SLID(s):

The Notice of Federal Tax Lien referenced above appeared on the Automated Lien System (ALS) Potential Lost Lien Report. This occurs when no recording information is reported for an NFTL within 90 days of its creation.

In accordance with lost NFTL procedures in IRM 5.12.7.14 and 5.19.12.9.5, we researched available sources, but were unable to locate any data indicating the NFTL was recorded. As a result, the NFTL has been removed from the Potential Lost Lien Report and it is no longer an active NFTL on ALS. Also, TCs 583 and 361 have been input to IDRS to reverse the Lien Filing Indicator and filing fee for this NFTL.

Since you are assigned the taxpayer’s case, we are notifying you of the situation so that you can make a determination regarding a replacement for this NFTL. Please take the following actions:

  1. Make a determination whether a replacement NFTL is appropriate for the tax modules on this lost NFTL.

  2. If a replacement NFTL is appropriate, complete Form 12636 and submit it via secure email to the CLO Team shown above. If a replacement NFTL is not appropriate, no further action is required.

No response to this memo is necessary. This situation is no longer controlled by CLO. A facsimile of the NFTL is attached for your convenience. If you have any questions, please call our internal line at 1-800-913-4170.

Sample Letter to Recording Office on Treasury Offset Program

This letter template is for use by CLO when contacting recording offices about TOP offsets and their requirement to file lien documents despite the offset. See IRM 5.19.12.7.4.1, Treasury Offset Program (TOP).

[Recording Official]
[Recording Office]
[Address]

re: Billing Support Voucher [BSV #, Date of BSV]

Dear [Name of Recording Official, if known]

This letter concerns lien documents returned by your office without being recorded. The Internal Revenue Service Centralized Lien Operation (CLO) submitted [xxx] Notices of Federal Tax Lien, [xxx] Certificates of Release, and [xxx] Withdrawal notices to your office for filing with the Billing Support Voucher (BSV) referenced above. Your office returned the lien documents citing non-payment of the filing fees.

The Internal Revenue Service did, in fact, pay the fees at issue. Simultaneously with the filings, a certified payment of $[xxxxx] was transmitted from the Department of the Treasury Financial Management Service (FMS), the agency that disburses lien filing fees. The payment, however, was subject to an administrative offset by the Treasury Offset Program to satisfy a delinquent debt owed by another agency of [insert state/ county]. To show that FMS made the post-offset payment, a payment of $1.00 (or other reduced amount) was deposited into your bank account.

The Treasury Offset Program (TOP) is a federal centralized offset program administered by FMS to collect delinquent debts owed by vendors to other government agencies. Before a vendor receives a federal payment (including payment of lien filing fees), FMS searches the database to determine whether the jurisdiction as a whole owes a federal debt. If a debt is found, FMS offsets the payment to apply toward the delinquency and sends a payment of at least $1.00 to the vendor as indication of payment. Enclosed is additional information regarding TOP. You can also find information about TOP at http://www.fms.treas.gov.

A notice of federal tax lien (NFTL) preserves the federal government’s lien priority in a delinquent taxpayer’s property by giving notice to certain competing creditors. Therefore, it is vital that recording offices timely file and record each NFTL and, once satisfied, each certificate of release to prevent harm to the taxpayer. Moreover, the Internal Revenue Code accords to taxpayers the statutory right to a release of the tax lien within 30 days of satisfaction.

{Optional paragraph if applicable} [Insert State] has adopted a version of the Uniform Federal Tax Lien Registration Act or similar legislation at [insert applicable state law reference]. State law requires you to file federal lien documents regardless of payment. Moreover, as demonstrated, the federal government has paid the filing fees.

The government has both a common law and a statutory right of setoff. United States v. Tafoya, 803 F.2d 140, 141-42 (5th Cir. 1986). “The government has the same right which belongs to every creditor, to apply the unappropriated moneys of his debtor, in his hands, in extinguishment of the debts due to him.” United States v. Munsey Trust Co., 332 U.S. 234, 239 (1947). Your office must work with the State function that incurred the federal debt to internally account for the funds. Your office is not permitted to discontinue filing federal tax lien documents because of the offset situation.

We request that your office immediately record the lien documents referenced above and any other documents you receive from the Internal Revenue Service in the future. If you have any questions on this matter, please contact me at the number shown above.

Sincerely,

[Name]
Operations Manager
Centralized Lien Operation

Enclosure

Sample Letter to Recording Office on Rejected Lien Documents

This letter template is for use by CLO when returning lien documents to recording offices to correct an IRS filing error. The text detailing the specifics of the situation should be modified to fit the situation. See IRM 5.19.12.7.4, Recording Offices.

[Recording Official]
[Recording Office]
[Address]

Dear [Name of Recording Official, if known]

Enclosed please find the lien documents and Billing Support Voucher [BSV #], originally dated [BSV date] you returned to our office citing the following error:
□ Payment issue
□ Duplicate filing
□ Missing or incorrect recording data for related document
SLIDs: ________________________________________________________
□ Other:

We apologize for our error and have corrected the situation in the attached documents. We ask that you record these documents as soon as possible.

We appreciate your feedback on this situation as it helps us to improve our quality. If there is a problem with recording documents that we send you in the future, the fastest way to resolve the problem is to contact us on our toll-free hot line at 1-800-913-4170. This line is always answered by a live operator and we can usually resolve the issue immediately. Delays in filing notices of lien can jeopardize the interest of the government and delays in filing releases of lien can harm taxpayers. To minimize delays, we would appreciate the opportunity to correct the error without your having to return the documents.

If you have any questions or comments about our operation, please contact us. Thank you for your consideration and assistance.

Sincerely,

[Name]
Operations Manager
Centralized Lien Operation

Enclosure