5.19.21 Campus Procedures for Handling Identity Theft

Manual Transmittal

April 27, 2018

Purpose

(1) This transmits a revision to IRM 5.19.21, Liability Collection, Campus Procedures for Handling Identity Theft.

Material Changes

(1) IRM 5.19.21.2, Identity Theft General Information, revised (2), (6), and (7)

(2) IRM 5.19.21.2.1.1, Identity Theft Claim Processing, (3) added caution statement.

(3) IRM 5.19.21.2.1.2, Identity Theft Guidance for ACS Call Site Employees, (2) added caution statement.

(4) IRM 5.19.21.2.2.2, Addressing Outstanding FPLP Levies, added (4).

(5) IRM 5.19.21.2.3, Identification Theft and Disposition of Levy Proceeds, changed title to Identity Theft and Disposition of Levy Proceeds.

(6) IRM 5.19.21.2.3.1, Returning Levy Proceeds to ID Theft Victims (SSN Owner), revised (2) and (3) note.

(7) IRM 5.19.21.2.3.2, Returning Proceeds from Wrongful Levy (Non Owner), revised (3)(f) and (4)(a).

(8) IRM 5.19.21.2.4, Processing Guidelines for ACS/ACSS Employees, revised If and Then chart.

Effect on Other Documents

IRM 5.19.21, dated June 20, 2017, is superseded.

Audience

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

Effective Date

(04-27-2018)

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

Program Scope and Objectives

  1. Purpose. This section discusses the overall identity theft guidance, processes, and procedures aimed at preventing identity theft, protecting taxpayers, and providing assistance to victims of identity theft. While many topics are touched upon in this chapter, comprehensive guidance about all of them cannot be included here. As you use this chapter, remain alert for references to other resources, such as related IRM’s and websites and access that guidance as needed to ensure a thorough understanding of topics. Specifically, IRM 5.19.21:

    • Establishes procedures for taxpayer interaction

    • Discusses identity theft claim requirement

    • Defines collection activity in identity theft

    • Describes steps needed in determining identity theft

    • Describes steps needed to resolve identity theft

  2. Audience. These procedures and guidance apply to IRS Campus Tax Examiners, Collection Representatives, Customer Service Representatives, and Team Managers.

  3. Policy Owner. The Director, Collection Policy is the owner of this IRM.

  4. Program Owner. SB/SE Collection Policy is the program owner of this IRM.

  5. The primary stakeholders that impact or are impacted by this IRM section include:

    • Campus Collection

    • Accounts Management

    • Identity Theft Victims Assistance

    • Designated Identity Theft Adjustment

  6. Program Goal. Identity Theft places a burden on its victims and presents a challenge to businesses, organizations, and government agencies, including the Internal Revenue Service. By following the direction in this IRM section, employees can combat tax related identity theft with an aggressive strategy for prevention, detection, and victim assistance.

Background

  1. IMF Identity Theft occurs when someone uses an individual’s personal information such as name, Social Security Number (SSN), or other identifying information without permission, to commit fraud, or other crimes.

  2. BMF Identity Theft occurs when business identifying information is created, used, or attempted to be used without authority to obtain tax benefits.

Authority

  1. The Identity Protection Strategy & Oversight (IPSO) Program was established to ensure Service wide implementation of federal directives to protect citizens and government employees. The following are the principal documents involving the identity theft program:

    • Combating Identity Theft: A Strategic Plan, The President’s Identity Theft Task Force Report, April 2007

    • Combating Identity Theft, Volume II: Supplemental Information, The President’s Identity Theft Task Force Report, April 2007

    • President’s Identity Theft Task Force Report Summary of Interim Recommendations, September 2006

    • Office of Management and Budget (OMB), M-06-15, Safeguarding Personally Identifiable Information, May 22, 2006

    • Office of Management and Budget (OMB), M-03-22, OMB guidance for Implementing the Privacy Provisions of the E-Government Act of 2002, September 30, 2003

Responsibilities

  1. The Director, Collection Policy is the executive responsible for the policies and procedures to be employed by Campus Personnel.

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

Program Management and Review

  1. Program Reports. The following reports can assist with reviewing this type of workload.

    • Embedded Quality Review System (EQRS) Reports.

    • National Quality Review System (NQRS) Reports.

    • AMS Reports.

    • ACS Reports.

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

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

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

Program Controls

  1. Identity Theft Indicators. These indicators are utilized to track identity theft cases from the time a victim or IRS initially suspects identity theft through case closure.

  2. Tax Administration Source Codes. These source codes are utilized to track identity theft cases when they are initially identified.

Terms/Definitions/Acronyms

  1. Frequently used terms within this IRM section along with their definition include:

    1. Tax related identity theft - Identity Theft with a direct effect on the taxpayer’s filing and payment requirement such as the ability to file a tax return, receive a refund, or take other actions associated with the theft of a taxpayer identification number.

    2. Non-tax related identity theft - The taxpayer experiences an incident such as becoming a victim of a data breach from their medical office or a lost or stolen wallet or purse. These incidents will place them at risk of identity theft related to their credit or finances but there is no direct effect on tax administration at this time.

  2. Frequently used acronyms within this IRM section along with their full title include:

    Acronym Full Title
    ACS Automated Collection System
    ACSS Automated Collection System Support
    ADJ Adjustment
    AMS Accounts Management System
    CIS Correspondence Imaging System
    CSCO Compliance Services Collection Operation
    DITA Designated Identity Theft Adjustment
    IDTVA Identity Theft Victim Assistance
    PNDCLM Taxpayer alleges identity theft forwarding claim
    SB/SE Small Business Self Employed
    UNWORK Identity Theft Claim received but not worked
    W&I Wage and Investment

Related Resources

  1. These are other related resources:

    • IRM 25.23, Identity Protection and Victim Assistance

    • IRM 5.1.28, Identity Theft for Collection Employees

Identity Theft - General Information

  1. There are different types of forms regarding Identity Theft:

    • Form 14027–B, Identity Theft Case Referral, and Form 14103, Identity Theft Assistance Request (ITAR), are received and processed by IDTVA.

    • Form 14039, Identity Theft Affidavit. These forms are received from taxpayers in support of their identify theft claim. Follow procedures in the following sections for processing these forms.

  2. When handling cases with ID Theft issues, refer to the following Issue/Response Chart:

    Issue Response
    The taxpayer's identity is stolen; however, they have no indication their stolen identity was used inappropriately for tax purposes,

    Example:

    They haven't received an IRS notice.

    1. Advise the taxpayer to file a complete Form 14039, Identity Theft Affidavit, if the taxpayer has not already done so.

    2. Advise the taxpayer to also make a report to their local police and one of the three major credit bureaus:

      • Experian: 1-888-397-3742

      • Equifax: 1-800-525-6285

      • TransUnion: 1-800-680-7289

    3. Refer the taxpayer to the Identity Protection Specialized Unit (IPSU), 1–800–908–4490. See IRM 25.23.1 , Identity Protection and Victim Assistance - Policy Guidance. If the taxpayer requests Taxpayer Advocate Services (TAS) assistance or is facing economic burden(TAS criteria 1-4), or meets one of the exceptions in IRM 13.1.16.11.3.1, Criteria 5-7 Identity Theft Cases Not Eligible for Referral to IPSU , then refer to TAS instead of IPSU.

      Caution:

      Taxpayers should not be referred to IPSU unless they have additional questions that ACS cannot answer. IPSU will contact the taxpayer upon Form 14039, Identity Theft Affidavit, receipt.

    4. For additional information, visit http://www.irs.gov and type the words "identity theft" into the search engine.

      Note:

      Credit bureau information can be found at http://www.ftc.gov/.

    The taxpayer states an e-mail was received from the IRS requesting their personal identifying information,

    Example:

    SSN, EIN, financial information, etc.

    1. Advise the taxpayer the IRS does not request personal or financial information by e-mail; as a result, the taxpayer should not respond to this e-mail.

    2. Request the taxpayer forward a copy of this e-mail to IRS at phishing@irs.gov.

    3. For additional guidance,:
      See IRM 21.1.3.23, Scams (Phishing) and Fraudulent Schemes.

    Taxpayer has knowledge of another person filing a federal tax return with a stolen SSN or EIN, Ask the taxpayer for additional information, such as the perpetrators name and stolen SSN or EIN. Refer this information to Criminal Investigation Fraud Detection Center. See Exhibit 21.3.4–16, CRIMINAL INVESTIGATION SCHEME DEVELOPMENT CENTERS.
    Taxpayer requests a new SSN because their identity has been stolen, Advise the taxpayer to contact SSA at 1-800-772-1213 or http://www.ssa.gov/.
    Taxpayer states that they have been a victim of Identity Theft that was resolved. The taxpayer has either lost or never received their IP PIN.
    1. Follow the guidance in IRM 25.23.2.19, Identity Protection Personal Identification Number (IP PIN), to determine if an IP PIN was issued. If re-issuance is necessary follow IRM 25.23.2.19.1, Lost, Misplaced or Non-Receipt of IP-PIN.

    2. If taxpayer needs to request an IP PIN refer the taxpayer to the www.irs.gov/Individuals/Get-An-Identity-Protection-PIN

    Note:

    IRM 5.19.21.2.1, Identity Theft Claim, and IRM 5.19.21.2.1.1, Identity Theft Claim Processing, contain additional information on ID Theft claim and ID Theft claim processing. More information on ID Theft may be found in IRM 25.23, Identity Protection and Victim Assistance .

  3. If the taxpayer calls in and indicates that a credit on his/her account does not belong to them, research to determine where the credit should be applied. If you perform thorough research but cannot determine where the credit should be applied, follow the below procedures:

    If ... Then ...
    You receive authorization from the SSN owner through oral statement or correspondence that the credit does not belong to them; refer to IRM 21.5.8.2, Credit Transfers Overview, If the credit is less than one year old, prepare Form 2424 Account Adjustment Voucher to transfer the credit to Unidentified Remittance File (URF). If the credit is more than one year old, prepare Form 8758 Excess Collections File Addition to transfer credit to Excess Collection.

    Note:

    Payments cannot be transferred to Unidentified Remittance or Excess Collection unless a credit is available.

  4. CSCO cases will be forwarded to a co-located site, if not a co-located site, they will be sent to IDTVA-C Philadelphia.

    Note:

    Balance due cases in statuses other than in status 22 will be routed to the co-located IDTVA site (Fresno, Kansas City or Philadelphia) if not in one of those sites, it will be forwarded to Fresno IDTVA and the IDTVA will accelerate to ACS. All other programs (MOIC, DATL, etc.) should be routed to Philadelphia.

    If.... Then...
    We receive the required Identity Theft Claim from the taxpayer. (If the F14039, police report or F14157 is attached)
    1. Send the case to the IDTVA Unit listed under the Who/Where tab Identity Theft- Functional ITAR Theft Liaisons (AM IPSU and ACS use only):

    2. Notate AMS of all documents received and case actions taken and close case control.

    We do not receive any claim from the taxpayer
    1. Send a letter to the taxpayer telling them to complete the required IDT claim, and

    2. Include instructions to mail the IDT claim to the IDTVA-C Fresno address listed in Who/Where on SERP.

    3. Notate AMS of letter sent, case actions taken and close case control.

  5. ACSS will follow IRM 5.19.6.21, Victor "V" Inventory, for handling ID Theft case work.

  6. The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service that helps taxpayers and protects taxpayer rights. TAS helps taxpayers whose problems with IRS are causing financial difficulties, who’ve tried but haven’t been able to resolve their problems with IRS, or who believe an IRS system or procedure isn’t working as it should..

    • Refer taxpayers to the Taxpayer Advocate Service when the contact meets TAS criteria. Refer to IRM 13.1.7.2, TAS Case Criteria, if you are unable to resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same Day" cases include cases you can completely resolve within 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue. In cases where taxpayer states they have a hardship, use sufficient probing to determine that a manual refund is required before referring to TAS. For additional information refer to IRM 21.1.3.18Taxpayer Advocate Service (TAS) Guidelines.

    • Taxpayers may request assistance during or after enforcement action. The request must meet criteria as listed in IRM 13.1.7.2TAS Case Criteria. The identifying function will prepare Form 911 Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order).

      Note:

      Refer to IRM 13.1.16.11.3, Criteria 5-7 Identity Theft Cases Eligible for Referral to Identity Protection Specialized Unit (IPSU), and IRM 25.23.3.2.6, Identity Theft Assistance Request (ITAR) - General Information, for additional information.

  7. The Taxpayer Bill of Rights (TBOR) - each and every taxpayer has a set of ten fundamental rights when dealing with the IRS.

    • The Right to be Informed.

    • The Right to Quality Service

    • The Right to Pay No More than the Correct Amount of Tax

    • The Right to Challenge the IRS’s Position and Be Heard

    • The Right to Appeal and IRS Decision in an Independent Forum

    • The Right to Finality

    • The Right to Privacy

    • The Right to Confidentiality

    • The Right to Retain Representation

    • The Right to a Fair and Just Tax System

    Note:

    Refer to IRC § 7803(a)(3) and https://www.irs.gov/taxpayer-bill-of-rights

    .

Identity Theft Claim

  1. When a taxpayer claims to be a victim of ID Theft, they should be advised to submit their claim using Form 14039, Identity Theft Affidavit refer to IRM 25.23.2.15, Identity Theft Claim Overview.

    Note:

    Form 14039, Identity Theft Affidavit, no longer requires the submission of additional information/documentation.

  2. If unable to resolve the account using internal information or information already provided by the taxpayer, request additional information to substantiate identity theft. This may include:

    • Authentication of Identity - A copy of current, valid form of identification

      Example:

      Driver’s license, state identification card, social security card, passport, etc.

      Any U.S. federal or state government issued form of identification MUST be signed by the taxpayer (or legal guardian if a minor).

    • Evidence of the ID Theft.

      Example:

      A copy of a police report or Form 14039, Identity Theft Affidavit. Form 14039 should only be requested when the taxpayer has not previously submitted the form or when the submitted form was illegible.

    • Payor documents, such as W2 or 1099, and utility bills, deeds, or other proof of residency.

  3. Form 14039, Identity Theft Affidavit, and any additional information are required if the taxpayer requests abatement or adjustment of tax balances associated with ID Theft, and are referenced throughout this subsection.

  4. Taxpayers who submit a police report rather than Form 14039, Identity Theft Affidavit must also provide an explanation of how the ID Theft is affecting their tax records if not included within the police report.

  5. Taxpayers who previously submitted the above ID Theft claim to the Service have already substantiated their claim, and need not submit Form 14039 again.

    Note:

    A TC 971 AC 501 indicates the claim was received and adjustments made (if required). A TC 971 AC 522 indicates only that the claim has been received.

  6. To determine if the taxpayer needs to furnish ID Theft claim, review their account and follow the chart below:

    If ... Then ...
    TC 971 AC 501 with source code "INCOME" , "MULTFL" , "INCMUL" , etc., or if only a TC 971 AC 522 (Pending Claim with the following Tax Administration Codes; Income, INCMUL, NOFR, and Other) is present, The taxpayer does not need to provide new claim/information.

    Note:

    claim/information is valid for an incident for a period of three years from the date it is received and processed by the IRS. If the taxpayer experiences an ID Theft incident after that time frame, the taxpayer will need to submit new claim/information.

    TC 971 AC 501 or AC 522 (Pending Claim with the following Tax Administration Codes; Income, INCMUL, NOFR, UNWORK, and Other) is not present; the taxpayer indicates they sent ID Theft documents previously, Research AMS/IDRS for any indication the taxpayer’s correspondence has been received, (i.e. CIS print, correspondence control on IDRS) that has not been identified as ID Theft documents. If there is no indication any claim/information has been received, inform the taxpayer he/she must provide claim/information in order to consider their ID Theft claim.
    TC 971 AC 501 or AC 522 is not present; the taxpayer indicates they never sent ID Theft claim The taxpayer must provide claim/information.

    Note:

    If "IRSID" is present, there would be a TC 971 AC 506 or TC 971 AC 522 "IRSID" ; then no claim/information is required from taxpayer.

  7. Do not apply the TC 971 AC 522 "PNDCLM" or "IRSID" or "UNWORK " to the SSN of a taxpayer when an ITIN taxpayer reports the misuse of the SSN.

    Example:

    In the course of performing an audit, the employee identifies an ITIN taxpayer has been working under the SSN belonging to another individual. The SSN owner is unaware of the misuse of his SSN. Do not apply the TC 971 AC 522 to the SSN used by the ITIN taxpayer.

Identity Theft Claim Processing
  1. Beginning January 1, 2012, TC 971 AC 522 will also require the input of an appropriate source code and secondary date. This will enable the IRS to flag accounts at different stages of processing, from initial ID Theft claim to closure, dependent upon case specifics.

  2. Once the function is made aware that the taxpayer is a possible victim of ID Theft, they will be responsible for checking to see if there is an open control. If there is, the tax examiner will contact that employee to verify they are working the ID Theft issue. If the case is being worked by the controlling area and it has no impact on your compliance case – work the case as you would normally.

    Note:

    Always check the Alerts section of AMS to see if there is a CIS image and open the CIS link to see if the document is for the ID Theft claim. If so, do not ask the taxpayer to submit claim/information per the instructions below. Instead, follow IRM 5.19.21.2.1, Identity Theft Claim.

  3. For areas other than ACS, use the following directions when processing ID Theft issues:

    Caution:

    Prior to marking an account with TC 971 AC 522 PNDCLM, UNWORK or IRSID research CC ENMOD/IMFOLE to ensure the questionable tax year has not already been marked. If the coding already exists, do not input a second, matching code for the same tax year.

    If ... And ... Then ...
    The taxpayer makes a claim of ID Theft, Has not provided:
    • Form 14039 Identity Theft Affidavit.

      Note:

      For more information on required claim/information see IRM 25.23.2.15 Identity Theft Claim Overview.

    1. Input TC 971 AC 522 containing the miscellaneous field using the applicable BOD/Function, Program name and the Tax Administration Source Code listed below: "PNDCLM" and input the tax year of the IDT incident into the secondary date field. See Examples in IRM 5.19.21.2.1.1(7)

    2. Phone or TAC operations should verbally advise the taxpayer to submit the required claim/information and provide the appropriate address. See IRM 5.19.21.2, Identity Theft - General Information.

    3. Paper operations should send a letter to the taxpayer and request they provide the required claim/information and provide the appropriate address.

    4. Suspend collection, allowing the taxpayer time to respond. Input TC 470 with no closing code.

    5. Document AMS.

    The taxpayer makes a claim of ID Theft, Has provided Form 14039, Identity Theft Affidavit as described in IRM 25.23.2.15Identity Theft Claim - Overview.
    1. Input TC 971 AC 522 containing the miscellaneous field using the applicable BOD/Function, Program name and the Tax Administration Source Code listed below: "UNWORK" and input the tax year of the IDT incident into the secondary date field. See Examples in IRM 5.19.21.2.1.1(7)

    2. Forward to the appropriate IDTVA-C ACSS site along with Form 4442.

    3. Document AMS.

    The taxpayer makes a claim of ID Theft, Has provided required claim/information as described in IRM 25.23.2.15, Identity Theft Claim - Overviewand all corrective action to resolve the ID Theft issue has been taken.
    1. Continue working the non-IDT issue(s).

    Taxpayer alleges ID Theft, There is a posted unreversed TC 971 AC 501 or AC 506.
    1. Taxpayer is not required to provide claim/information.

    2. Forward new IDT claim to appropriate IDTVA-C ACSS operation along with Form 4442.

  4. ACS employees will follow IRM 5.19.21.2.1.2, Identity Theft Guidance for ACS Call-Site Employees, when handling ID Theft calls.

  5. If an active levy, IRM 5.19.21.2.2, Addressing Outstanding Levies.

  6. Input appropriate TC 971 AC 5XX. Utilize either IAT REQ77 (mandated) or IAT Compliance Suite (suggested)Tools for this input.

  7. TC 971 AC 522 input contains a miscellaneous field that must be completed consisting of the following:

    1. BOD/Function, for example, "WI" or "SBSE" .

    2. Program Name, for example, "ACS" or "CSCO" .

    3. Tax Administration Source, the only source code that should be utilized by Campus is PNDCLM.

    Example:

    "MISC>WI ACS PNDCLM"

  8. When inputting the required information, the TRANS-DT> - field on the IAT REQ77 (mandated) or IAT Compliance Suite (suggested)Tools input screen will automatically populate with the date of input.

  9. The 971 AC 522 input also contains a secondary date field used to identify the tax year at issue. Complete this field by inputting the year associated with the ID Theft. Use "MMDDYYYY" format.

    Example:

    "SECONDARY -DT>12312006"

    Note:

    If more than one year is involved, input a separate TC 971 AC 522 for each tax year related with the ID Theft incident.

  10. Use TC 972 in the event the TC 971 needs to be reversed. The TC 972 contains a miscellaneous field that must be completed including the reason for the reversal. Select the appropriate reason for the reversal from the following list:

    Abbreviation for Entry Description
    "TPRQ" Taxpayer request
    "IRSERR" Keying or other internal mistake

    Example:

    "MISC>WI ACS TPRQ" .

  11. TC 972 AC 522 Source Codes

    Term / Acronym Description Secondary Date Field
    "NORPLY" — The taxpayer did not provide IDT Claim, This code is used to close a suspended case when the taxpayer fails to provide the requested IDT claim within the time specified by the employee assigned. Will match the tax year of the TC 971 AC 522 "PNDCLM" .
Identity Theft Guidance for ACS Call Site Employees
  1. The following procedures apply for ACS Call Site employees when handling calls in which the taxpayer is claiming or has claimed ID Theft. Also, follow IRM 5.19.21.2 , Identity Theft - General Information, through IRM 5.19.21.2.1, Identity Theft Claim, for additional guidance on ID Theft.

  2. When the taxpayer is disputing the balance owed (original or additional assessment) on an IMF only account on the basis of ID Theft and CC ENMOD does not indicate a TC 971 AC 506 or TC 971 AC 501 posted after a TC 971 AC 522:

    Caution:

    IF CC ENMOD indicates either a TC 971 AC 501 or AC 506 (not active identity theft) do not refer the case to the “O” function.

    If ... Then ...
    A CIS Image indicator is present in the ALERTS section on AMS and it is the document for the ID Theft claim,
    1. Reassign the SB/SE or W&I case on ACS: " TOO9,01,CISIMG"

    2. Input TC 971 AC 522 "UNWORK" on CC ENMOD, if one is not already present for the tax year in question. **See Caution at end of Chart**

    3. If a levy is active, follow IRM 5.19.21.2.2Addressing Outstanding Levies.

    4. Document AMS with all actions taken.

    5. Advise the taxpayer the claim has been received and he/she should receive a letter within 60 days of confirming receipt of the claim.

    No claim/information available (CIS Image) and the taxpayer can immediately FAX the required claim/information,

    Note:

    Direct SB/SE faxes to Philadelphia and W&I faxes to Fresno or Kansas City based on ACSS state mapping.

    1. Have the taxpayer fax documents to the appropriate IDTVA-C ACSS site.

      • Internal Revenue Service Fresno Campus :
        FAX# 855-516-2279

      • Internal Revenue Service Philadelphia Campus :
        FAX# 267-466-1034

      • Internal Revenue Service Kansas City Campus:
        Internal Revenue Service
        Fax #816-499-7889

    2. Reassign the SB/SE or W&I case on ACS: "TOV1,60,IDTADJ" .

    3. Input TC 971 AC 522 "PNDCLM" on CC ENMOD, if one is not already present for the tax year in question. **See Caution at end of Chart**

    4. If a levy is active, follow IRM 5.19.21.2.2, Addressing Outstanding Levies.

    5. Document AMS with all actions taken and directions given to taxpayer.

    6. Advise the taxpayer they should receive a letter within 60 days of receipt from IDTVA-C ACSS confirming receipt of the claim.

    No claim/information available (CIS Image), and:
    • The taxpayer CAN NOT immediately FAX the required claim/information,

      or

    • The taxpayer wants to mail the claim/information,

    Note:

    Direct SB/SE mail or faxes to Philadelphia and W&I mail or faxes to Fresno or Kansas City based ACSS state mapping.

    1. Advise the taxpayer of the fax number to be used or to mail the required claim to the appropriate IDTVA-C ACSS site address. Provide a firm deadline date. The appropriate addresses are located below:

      • Internal Revenue Service Fresno Campus :
        Internal Revenue Service
        5045 East Butler Avenue
        Fresno, CA 93727
        Stop# 3501
        FAX# 855-516-2279 or

      • Internal Revenue Service Philadelphia Campus:
        Internal Revenue Service
        2970 Market Street
        Philadelphia, PA 19104
        Stop#4-J30.152
        FAX# 267-466-1034.

      • Internal Revenue Service Kansas City Campus:
        Internal Revenue Service
        P.O. Box 219236
        Kansas City, MO. 64121
        STOP 5050 P-4
        Fax #816-499-7889

    2. Warn of enforcement action. See IRM 5.19.1.7, Warning of Enforcement Action and Enforced Collection.

    3. Reassign the SB/SE or W&I case on ACS: "TOV1,60,IDTADJ" .

    4. Input TC 971 AC 522 "PNDCLM" on CC ENMOD if one is not already present for the tax year in question. **See Caution at end of Chart**

    5. Document AMS with all actions taken and directions given to the taxpayer including deadline date.

    If there is an open IDTVA_Compliance IDRS ID Theft control base refer to Exhibit 25.23.2-16, IDRS Category Controls by Function.
    1. Refer the caller to the applicable function/employee by providing the taxpayer with the direct contact information (see Note below), of the controlling employee.

      Note:

      Some W&I functions currently use the toll-free ID Theft telephone number and have assigned aspect extension numbers. This can be determined by the IDRS control base activity code. If the activity codes shows "IDTXXXXXX" , provide the toll-free and Aspect extension numbers to the taxpayer. "XXXXXX" indicates the Aspect number. See IRM 25.23.4.18 Telephone Contact Procedures for IDTVA-C Paper Employees Only.

    2. If not already in ACS Function "O" , reassign the SB/SE or W&I case on ACS to: "TOO9,01,CNTRL" .

    3. If a levy is active, follow IRM 5.19.21.2.2Addressing Outstanding Levies.

    4. Document AMS with all actions taken.

    If there is an open IDRS ID Theft control base to a non-Compliance function refer to Exhibit 25.23.2-16, IDRS Category Control by Function.
    1. If not already in ACS Function "O" , reassign the SB/SE or W&I case on ACS to: "TOO9,01,CNTRL" .

    2. If a levy is active, follow IRM 5.19.21.2.2, Addressing Outstanding Levies.

    3. Document AMS with all actions taken.

    4. Advise the taxpayer the case is being referred to the IDT Specialized team. The taxpayer should expect a letter within 60 days from the day the referral is received by the IDT Specialized team.

    Note:

    Time frames for International accounts refer to IRM 5.19.19.4.3, International Account Time Frames.

     

    Caution:

    The secondary date field on IAT REQ77 Tool is limited to the current calendar year and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is 2010 or earlier input the TC971 AC522 on the 2011 tax year and leave AMS history (if you do not have AMS access, leave a history on ENMOD) indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2010, leave the following history on ENMOD/AMS as applicable: H,AC522-2009 then input the TC971 AC522 on the 2010 tax year (earliest year allowed by programming).

  3. When the taxpayer is disputing the balance owed (original or additional assessment) on an IMF only account on the basis of ID Theft and CC ENMOD indicates a TC 971 AC 501 posted after a TC 971 AC 522 or a TC 971 AC 506 is present, DO NOT request the taxpayer to submit/resubmit the claim. The identity claim is valid within three (3) years of the TC 971 AC 501/506/522 and ONLY applies to when a taxpayer continues to dispute a resolved ID Theft. All other disputes should be worked with the taxpayer on the call.

    1. Reassign the SB/SE or W&I case on ACS:
      "TOO0,01,IDTADJ"
      Non-ACS Accounts: Input CC STAUP 2209.

    2. If a levy is active, follow IRM 5.19.21.2.2, Addressing Outstanding Levies.

    3. Document AMS with all actions taken.

    4. Advise the taxpayer a referral is being sent to another area for resolution of their case and should receive written or telephone contact within 30 days of receipt.

  4. When the taxpayer is disputing the balance owed (original or additional assessment) and a BMF account is involved on the basis of ID Theft, reassign the account on ACS "TOO3,01,BMFIDT" . Prepare a Form 4442 to the appropriate SB/SE IDTVA-C ACSS Liaison indicating taxpayer is claiming IDT on a BMF entity. Do not input any TC 971 AC 522 on BMF accounts. The determination for the TC 971 will be made by the SB/SE IDTVA-C ACSS Team.

  5. If the taxpayer wants an IA or states they are CNC, document AMS with the required information (financial statement, IA amount, etc.). Advise the taxpayer to make voluntary payments notating the tax period the payment should be applied. Do not set up the IA or CNC the account. When the ID Theft issue is resolved, IDTVA-C ACSS will transfer the case to ACS to address any compliance issues.

  6. If the taxpayer indicates the address of record or name is incorrect, document AMS with the information provided by the taxpayer. Do not make any changes to the entity information. The IDTVA-C ACSS team will make the necessary changes, as determined.

  7. When the taxpayer is NOT disputing the balance owed (original or additional assessment) on the basis of ID Theft and a TC 971 AC 501/506 are present subsequent to a TC 971 AC 522 for the same tax year or tax years:

    1. Advise the taxpayer that the ID Theft situation has been resolved.

    2. A notice or letter will be issued (or may have been already issued).

      • If TC 971 AC 501 was input, then CP 01, Identity Theft Claim Acknowledgement, is issued.

      • If TC 971 AC 506 was input, then Letter 4674C, Identity Theft Post-Adjustment Victim Notification Letter (For use by AM When TC 971 AC 506 is input), is issued.

    3. Do not refer the case to the IDTVA-C ACSS Coordinator or reassign the case to the "O" function.

    4. Continue with normal balance due resolution (IA, CNC, etc.).

  8. If a taxpayer calls back to check on the status of the account and the follow-up date has expired in the "O" function inventory and an open control DOES NOT exist:

    1. Check AMS history to see if actions were taken to resolve the issue. If case has been resolved, explain to the taxpayer and continue with normal balance due resolution (IA, CNC, etc.), or

    2. If there is no information that the issue has been resolved, follow the first three procedures in the If and Then table in paragraph (2) above.

  9. If a taxpayer calls back to check on the status of the account and the follow-up date has expired in the "O" function and an open control DOES exist:

    1. Follow the last two procedures in the If and Then table in paragraph (2) above.

    2. Input "OADT,01,IDTRFRL" .

  10. ) If a taxpayer calls back to check on the status of their account and states they did file the tax return in question for which the TC 971 AC 522 was input:

    1. Follow the procedures in the "If and Then" table in paragraph (2) above with an open IDRS control base assigned to an IDT employee;

    2. If no open control , input the TC 972 AC 522 with tax administration source code "IRSERR" and resolve the balance due. Update the case to the appropriate function based on the actions taken on the account.

      Note:

      If more than one return is filed refer case to IDTVA-C.

  11. If a taxpayer calls back who is in bankruptcy and may be a victim of identity theft, promptly contact CIO (same day notification, when possible). Referral information should be faxed to Insolvency using Form 4442, Inquiry Referral. Telephonic notification may also be used. All actions must be promptly documented by Service employees. These numbers can be found within SERP, Who/Where tab.

  12. International accounts are handled by the Philadelphia ACSS/CSCO International Team. These accounts can be identified by File Location Codes (FLC) 20, 21, 60, 66, 78 and 98. FLC 21, 66, and 78 contain all returns with a U.S. possession or territory address with a 5-digit ZIP Code (Form 1040–PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia, or Form 1040–SS, U.S. Self-Employment Tax Return, which include Puerto Rico, American Samoa, Guam, U.S. Virgin Islands and the Commonwealth of the Northern Marianna Islands.

  13. FLC 20, 60, and 98 are used for returns with:

    • A foreign address.

    • Form 2555Foreign Earned Income or Form 2555–EZForeign Earned Income Exclusion.

    • Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Form SSA-1042S, Social Security Benefit Statement, Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 8288–A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests.

    • Dual Status Notification.

    • Form 1040–NR, U.S. Nonresident Alien Income Tax Return, or Form 1040–NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents.

    Caution:

    Do not assume that an account is International just because you have received Spanish correspondence. Ensure that the above criteria is met.

Addressing Outstanding Levies

  1. If there is a balance due not attributable to identity theft, collection activities, including the appropriate use of enforced collection action, are not prohibited when a taxpayer has established that he/she was a victim of identity theft.

    1. Be sensitive to the adverse impact that being a victim of identity theft may have upon a taxpayer and his/her ability to pay.

    2. Consider temporarily suspending the account until the identity theft incident is resolved in cases where you determine the identity theft will have an adverse impact on the taxpayer’s ability to pay.

    Note:

    Caution should be used to ensure collection activities are taken only on balance due modules not attributable to identify theft.

  2. If the taxpayer claims financial hardship as a result of a tax-related identity theft issue:

    1. Prepare and submit Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order). If the taxpayer requests to contact Taxpayer Advocate Service directly, advise the taxpayer to call 1-877-777-4778 toll-free, or go to http://www.irs.gov/advocate/.

      Caution:

      If IRS can provide relief or take a substantive action towards providing relief within 24 hours, do not send the case to TAS.

    2. If the taxpayer is an individual, refer to IRM 25.23.2.2, Taxpayer Interaction.

    3. If the ID Theft situation involves a business, refer to IRM 25.23.9, BMF Identity Theft Processing.

  3. Review the case history for outstanding enforcement activity that may need to be corrected, i.e., levies, liens.

  4. A levy attaching the assets of the victim in a mixed entity case must be immediately released. Accounts should be adjusted and all pre-levy notices properly issued before levy re-issuance. See IRM 5.1.28.8, Identity Theft Case Resolution, for actions after levy release. See IRM 25.23.4.4, Multiple Individuals Using the Same TIN - General Guidance for MXEN, and Identity Theft, for appropriate adjustment actions.

    Exception:

    If no account adjustment is required and all pre-levy notices were properly issued a levy may remain in effect unless a circumstance outlined in IRM 5.11.2.3.1Legal Basis for Releasing Levies, is present. Also see IRM 5.1.28.8, Identity Theft Case Resolution, for required actions on cases involving ID Theft.

  5. A levy attaching to assets of non-owner of the TIN for which:

    1. The Service assessed the liability in the name of the non-owner of the TIN,

    2. The Service issued all pre-levy notices properly to non-owner of the TIN,

    3. The Service assessed the liability under the TIN of the victim,

    4. The assessment is based solely on the income of the non-owner of the TIN, and

    5. There are no credits (payment offset, etc.) attributable to the victim for the assessment listed on the levy,


    may remain in effect unless a circumstance outlined in IRM 5.11.2.3.1, Legal Basis for Releasing Levies, is present. The assessment is not invalid for the sole reason that it was made under the victim's TIN.

    Note:

    If unable to determine if the liability of the non-owner of the TIN is satisfied then release the levy until the account can be adjusted to ensure the levy is not enforced on a satisfied liability.

    Reminder:

    To prevent re-issuance of levy, change levy source to "INFO ONLY" .

Addressing ACS Paper Levies
  1. When the taxpayer claims to be a victim of ID Theft and claim has not been received, a levy release is not warranted unless there is an economic hardship situation. On ACS, ensure account is in the "O" function inventory.

  2. When the taxpayer claims to be a victim of ID Theft and claim has been received, the levy should be released only for the tax modules affected by the ID Theft.

  3. Follow IRM 5.19.4.4.10, Levy Release: General Information, for full and partial levy release procedures.

  4. For employees without access to ACS, if a levy release is warranted, fax Form 14394, Identity Theft/Return Preparer Misconduct Case Collection Alert, to the appropriate IDTVA-C ACSS Coordinator. Be sure to provide ID Theft support documentation, including documenting the tax module(s) affected by the ID Theft. See SERPWho/Where, ID Theft/ITAR Coordinator.

    Note:

    Consider a release of a levy based on prior indication of ID Theft TC 971 AC 501 or AC 506 on IDRS.

Addressing Outstanding FPLP Levies
  1. A thorough review of the account must be conducted to ensure that all tax years affected by tax related identity theft are blocked from the FPLP program.

  2. When a TC 971 AC 501 or AC 506 has not posted to the entity for tax administrative ID Theft, employees, must take steps to block outstanding FPLP levies.

    1. When a module has been selected for FPLP (unreversed TC 971 AC 060) it may be necessary to input a manual block. Refer to IRM 5.19.9.3.7, FPLP Levy Release: General.

    2. When a FPLP account is matched with a Federal payment or FPLP account (unreversed TC 971 AC 062) and the disbursement of the Federal payment is imminent, an immediate FPLP release through the FPLP coordinator may be necessary, see IRM 5.19.9.3.7.1, Immediate Release Through the FPLP Liaison.

  3. When a TC 971 AC 501 or AC 506 is posted, FPLP will automatically block the tax modules entered into the secondary date field. However, depending on when the TC 971 AC 501 or AC 506 was input, there may be a need for an immediate release where the disbursement of the Federal payment is imminent. Follow the procedures in IRM 5.19.9.3.7.1, Immediate Release Through the FPLP Liaison.

    Caution:

    Do not manually block the case from levy if the assessment is not a result of the identity theft.

  4. If a tax year affected by identity theft is included in the FPLP program, keep in mind that the return of levy proceeds requires special handling in accordance with IRC § 6343(d) and IRM 5.11.2.4, Returning Levied Property to the Taxpayer. FPLP levy payments can only be returned if the payment date is within two (2) years preceding the request for return of funds. FPLP levy payment dates should be verified before returning the payment.

Addressing Outstanding SITLP, MTLP, and AKPFD Levies
  1. There may be situations involving SITLP, MTLP, AKPFD affected by identity theft issues. In those cases, the employee will be required to follow the procedures outlined in the chart below:

    If... Then...
    The taxpayer indicates they are a victim of identity theft and there is a TC 971 AC 522 present
    • Input a TC 470 with no closing code

    The taxpayer indicates they are a victim of identity theft and there is not a TC 971 AC 522 present
    • Follow the normal procedures for inputting a TC 971 AC 522 "PNDCLM"

    • Input a TC 470 with no closing code

    An employee is working a resolved IDT case
    • Reverse the TC 470 as appropriate, following the normal reversal procedures

    Note:

    ALP’s (SITLP/AKPFD/MTLP) are identified by the existence of a TC 971 AC 600, 601 or 602 on each module selected. IRM 5.19.9Liability Collection, Automated Levy Programs for further information.

  2. To stop systemic levy action while the identity theft case is being worked towards resolution, manual exclusion is necessary. This is achieved by the input of the TC 470 with no closing code. Once the case is resolved the TC 470 must be reversed to allow inclusion in the applicable ALP program.

Identity Theft and Disposition of Levy Proceeds

  1. This section has been developed to provide guidance for cases that involve ID Theft issues where the individual calling was levied and levy proceeds have been sent to the Service. The caller may be the owner or non-owner of the TIN. Ensure the levy has been released.

  2. The IRC distinguishes between "wrongful" levies and other types of improper or "erroneous" levies.

    1. A "wrongful" levy includes one that improperly attaches property belonging to a third party in which the taxpayer has no rights. (See IRC 6343(b)) The Code specifically authorizes the IRS to return property wrongfully levied upon(or an amount of money equal to the amount levied upon). See IRM 5.11.2.3.2.1, Wrongful Levy, for wrongful levy procedures.

    2. An "erroneous" levy is one that properly seeks to capture a taxpayer's property (rather than a third party's property), but nevertheless is served prematurely or otherwise in violation of an administrative procedure or law. (See IRC 6343(d).) See IRM 5.11.2.3.2.3, Erroneous Levies, for erroneous levy procedures.

      Note:

      Do not confuse this situation with one where the taxpayer (SSN owner) does not owe a liability. See IRM 5.19.21.2.3.2(2), Returning Proceeds from Wrongful Levy – (Non Owner).

Returning Levy Proceeds to ID Theft Victims – (SSN Owner)
  1. These procedures address cases where the owner of the SSN claims the Service levied on property he or she has an interest in to satisfy the tax liability that does not belong to them.

  2. When the SSN owner is claiming a refund of levy proceeds because the levy was based on the assessment of liability not belonging to the taxpayer, consideration for returning the payments falls under normal payment RSED procedures and time frames (generally 2 years from the payment date). See IRM 25.6.1.10.2.7.

  3. If all of the following conditions are satisfied, the levy proceeds should be returned to the SSN owner:

    1. An ID thief (non-owner of the SSN) has filed a return in the taxpayer’s name.

    2. The SSN owner (taxpayer) did not have a filing obligation or at least didn’t file a return, which delayed discovery of the ID Theft.

    3. The ID Theft return either was audited or reviewed and there is an assessed balance on the victim (SSN owner) account that the IRS is attempting to collect (defaulted deficiency or summary assessment of overstated withholding).

    4. The IRS has used its levy authority to collect against the assessment.

    5. The IRS determines it should abate the assessments created as a result of the return filed by the non-owner of the SSN. The taxpayer’s account will have a zero liability and a credit balance equal to the amount of levy proceeds.

      Note:

      Because the assessment and levy were for the taxpayer/victim, rather than an assessment for a taxpayer and a levy on a third party's property, the wrongful levy statute does not apply."

Returning Proceeds from Wrongful Levy – (Non Owner)
  1. The non-owner of the TIN may file a wrongful levy claim for return of levy proceeds (from the assets of the non-owner of the TIN) already received and processed by the Service. See IRM 5.19.21.2.3 (2)a, Identity Theft and Disposition of Levy Proceeds, for definition of "wrongful" levy.

  2. A "wrongful" levy claim may be appropriate when:

    1. The assessment is based solely on the SSN owner's income, since the levy improperly attaches to property belonging to a third party (the non-owner(s) of the TIN).

    2. The assessment is based on the combined income of the non-owner(s) of the TIN and the owner's, since the levy may have improperly attached to property belonging to a third party (the non-owner of the TIN).

    3. The assessment is based on the combined income of multiple non-owners, since the levy may have improperly attached to property belonging to the third parties.

  3. When speaking with the caller, secure information to determine that the individual requesting the return of levy proceeds is the non-owner of the SSN and not the owner of the original SSN. Verify the following:

    1. Name, address and SSN/ITIN.

    2. The levy issued was to a source belonging to the non-owner of the SSN based on the taxes assessed under the SSN of the rightful owner or assessed in the name of the victim based on the earnings of the non-owner of the SSN.

      Example:

      The non-owner proves use of the SSN via pay stubs or any other substantiating document and has rent/utility receipts where current name/address is the name/address on CC IRPTR print out and pay stubs show use of that SSN.

    3. The non-owner must provide substantiation to show ownership of the levy payments.

    4. Taxes were assessed on the account of the rightful owner of the SSN or assessed based on the earnings of the non-owner of the SSN.

    5. The true owner’s account (SSN) is being used by the owner and the non-owner (not merely by the non-owner to work).

    6. Contact from non-owner must be within two (2) years of the date of the levy. However if the date of levy was on or before March 22, 2017, then the non-owner must contact the IRS to request return of levy proceeds within 9 months of the date of levy.

      Note:

      If IRS is contacted more than two (2) years after the date of the levy, we have no authority to return the wrongful levy payments.

  4. See IRM 5.11.2.3.2.1, Wrongful Levies, for appropriate action. Contact Advisory & Insolvency (AI)-Advisory to determine if the non-owner of the TIN would qualify for wrongful levy claim consideration.

    1. AI-Advisory will evaluate a properly filed claim. If the claim is disallowed, Al- Advisory should notify the third party in writing of the reason for disallowing the claim and of the right to bring suit against the government. If the claim is disallowed because it was not made timely within two (2) years from the date of the levy, AI-Advisory should send Letter 3973, Wrongful Levy Claim Rejection Letter - Untimely Claim, via certified mail.

    2. If the claim is disallowed for another reason, Al-Advisory should send the claimant Letter 3974, Wrongful Levy Claim Rejection Letter, via certified mail. Disallowance of the claim may be appealed through the Collection Appeals Program (CAP).

  5. If a levy is served where the Service:

    • Assessed the liability in the name of the non-owner of the SSN

    • Issued all pre-levy notices properly to non-owner of the SSN

    • The assessment is made under the SSN

    • The assessment is based solely on the income of the non-owner

    • There are no credits (payment, offset, etc.) attributable to the SSN owner for the assessment listed on the levy

    the levy may remain in effect unless there is an independent basis for releasing it. See IRM 5.11.2.3.1, Legal Basis for Releasing Levies. The assessment is not invalid for the sole reason that it was made under the victim's TIN/SSN.

    Reminder:

    To prevent re-issuance of levy, change levy source to "INFO ONLY" .

Processing Guidelines for ACS/ACSS Employees

  1. If the caller (non-owner of the SSN) has documentation/verification readily available, instruct the caller to forward the information to the appropriate IDTVA-C ACSS site. The phone assistor is required to take all necessary action during the call and document AMS with all actions taken.

    Caution:

    The date of levy issuance impacts the following If and Then decision making.

    If ... And ... Then ...
    Date of levy was issued on or before March 22, 2017. Non-owner of the SSN contacts IRS within 9 months of the levy issuance date, Non-owner has their own account (i.e. valid SSN OR ITIN), Non-owner substantiates levy payment(s).
    1. Complete full compliance check. Refer to IRM 5.19.1.4.4.1, Full Compliance Check.

    2. Ask the non-owner for substantiation (i.e. pay stubs or payroll records) to prove ownership of the levy payments.

    3. If substantiation is secured during call (faxed to CR) forward to the appropriate IDTVA-C ACSS site. .

    4. Manually refund the levy payment(s) to the non-owner; complete Form 5792Request for IDRS Generated Refund(reference the non-owner’s true account number on the refund check), per IRM 21.4.4.4.1, Preparation of Form 5792 IDRS Generated Refund.

      Caution:

      Ensure non-owner has no valid balance due modules.

    5. If substantiation needs to be mailed in:
      Provide IDTVA-C ACSS site address
      Input history code:
      W&I: "TOV1,XX,RFND"
      SB/SE: "TOV1,XX,RFND"

    6. Input TC 570 (to freeze funds/prevent refund).

    7. Document AMS.

    Date of levy was issued on or before March 22, 2017. Non-owner of the SSN contacts IRS within 9 months of the levy issuance date, Non-owner does not have his own account,
    1. Advise the non-owner to file a return, Form W-7Application for IRS Individual Taxpayer Identification Number (if no ITIN), and substantiation to verify payments and mail to the appropriate IDTVA-C ACSS site.
      If Non-Owner of the SSN requests Income Documents refer to IRM 21.3.4.29.2Income Documents Related to ID Theft Issues.

    2. Input TC 570 (to freeze funds/prevent refund).

    3. For SB/SE or W&I cases, input history code:
      "TOV1,60,ITIN" (or "IRSN" )

    Note:

    IRM 21.3.4.29.2, Income Documents Related to ID Theft Issues, addresses issue if non-owner requests CC IRPTR income documents.

    Reminder:

    ITIN application process:

    1. Federal income tax return.

    2. Form W-7Application for IRS Individual Taxpayer Identification Number.

    3. Proof of identity and foreign status documents.

    4. Assistance available to complete Form W-7, Application for IRS Individual Taxpayer Identification Number:
      800-829-1040
      IRS.GOV
      TAC
      Acceptance Agent

    Date of levy was issued on or before March 22, 2017. Non-owner contacts IRS more than 9 months after the levy issuance date but less than 12 months, Intentionally Left Blank Do not return the levy payment(s) to the non-owner
    1. Advise the non-owner that the payment cannot be returned to them because they did not request it timely.

    2. Input TC 570 (to freeze funds/prevent refund).

    3. Reassign SB/SE or W&I cases to:
      "TOV1,XX,EXCESSC"
      XX = If payment is less than 12 months old, adjust the follow-up date accordingly to meet the 12 month requirement.

    Date of levy was issued on or before March 22, 2017. Non-owner contacts IRS more than 12 months after the levy issuance date, Intentionally Left Blank Refer the payment(s) to Excess Collection
    1. Advise the non-owner that the payment cannot be returned to them because they did not request it timely.

    2. Complete Form 8758Excess Collections File Addition for each credit.
      Helpful Hints: Box 3 Source Code ="CO" (from where credit is transferred Collection ="CO" ) Box 4 Status Code ="IDEN" (Identified) Box 9 Payment Type (remittance received)
      "CA" = cash
      "CC" = cashier’s check
      "MO" = money order
      "PC" = personal check
      "UK" = unknown
      Box 16 Reason = "Wrongful Levy-Do Not Apply or Refund ID Theft" IRM 3.17.220.2.1.1Preparation of Form 8758

    Date of levy was issued after March 22, 2017. Non-owner of the SSN contacts IRS within two (2) years of the levy issuance date Non-owner has their own account (i.e. valid SSN OR ITIN), Non-owner substantiates levy payment(s).
    1. Complete full compliance check. Refer to IRM 5.19.1.4.4.1, Full Compliance Check.

    2. Ask the non-owner for substantiation (i.e. pay stubs or payroll records) to prove ownership of the levy payments.

    3. If substantiation is secured during call (faxed to CR) forward to the appropriate IDTVA-C ACSS site. .

    4. Manually refund the levy payment(s) to the non-owner; complete Form 5792Request for IDRS Generated Refund (reference the non-owner’s true account number on the refund check), per IRM 21.4.4.4.1, Preparation of Form 5792, IDRS Generated Refund.

      Caution:

      Ensure non-owner has no valid balance due modules.

    5. If substantiation needs to be mailed in:
      Provide IDTVA-C ACSS site address
      Input history code:
      W&I: "TOV1,XX,RFND"
      SB/SE: "TOV1,XX,RFND"

    6. Input TC 570 (to freeze funds/prevent refund).

    7. Document AMS.

    Date of levy was issued after March 22, 2017. Non-owner of the SSN contacts IRS within two (2) years of the levy issuance date Non-owner does not have his own account,
    1. Advise the non-owner to file a return, Form W-7, Application for IRS Individual Taxpayer Identification Number, (if no ITIN), and substantiation to verify payments and mail to the appropriate IDTVA-C ACSS site.
      If Non-Owner of the SSN requests Income Documents refer to IRM 21.3.4.29.2, Income Documents Related to ID Theft Issues.

    2. Input TC 570 (to freeze funds/prevent refund).

    3. For SB/SE or W&I cases, input history code:
      "TOV1,60,ITIN" (or "IRSN" )

    Note:

    IRM 21.3.4.29.2, Income Documents Related to ID Theft Issues, addresses issue if non-owner requests CC IRPTR income documents.

    Reminder:

    ITIN application process:

    1. Federal income tax return.

    2. Form W-7, Application for IRS Individual Taxpayer Identification Number.

    3. Proof of identity and foreign status documents.

    4. Assistance available to complete Form W-7Application for IRS Individual Taxpayer Identification Number:
      800-829-1040
      IRS.GOV
      TAC
      Acceptance Agent

    Date of levy was issued after March 22, 2017. Non-owner contacts IRS more than two (2) years after the levy issuance date, Intentionally Left Blank Refer the payment(s) to Excess Collection
    1. Advise the non-owner that the payment cannot be returned to them because they did not request it timely.

    2. Complete Form 8758, Excess Collections File Addition, for each credit.
      Helpful Hints: Box 3 Source Code ="CO" (from where credit is transferred Collection ="CO" ) Box 4 Status Code ="IDEN" (Identified) Box 9 Payment Type (remittance received)
      "CA" = cash
      "CC" = cashier’s check
      "MO" = money order
      "PC" = personal check
      "UK" = unknown
      Box 16 Reason = "Wrongful Levy-Do Not Apply or Refund ID Theft" IRM 3.17.220.2.1.1Preparation of Form 8758

    Note:

    If the caller states they want to file a formal wrongful levy claim, inform them of Pub 4528, Making an Administrative Wrongful Levy Claim Under Internal Revenue Code (IRC) Section 6343(b).