- 5.1.18.13 United States Postal Service
- 5.1.18.14 Utility Companies
- 5.1.18.15 Social Security Administration
- 5.1.18.16 United States Passport Office
- 5.1.18.17 Treasury Enforcement Communications System
- 5.1.18.18 Foreign Bank and Financial Account Report
- 5.1.18.19 Centralized Asset Research System — Systemic Levy
- 5.1.18.20 Credit Bureaus, the Fair Credit Reporting Act, and Credit Reports
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The most common error with Form 4759 is neglecting to include the return IRS address where the Postmaster can send the taxpayer address information. Other common errors include using an outdated form or including a return envelope.
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When it is necessary to send Form 4759 to the USPS, always:
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use the most recent version of Form 4759,
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include the appropriate return address, and
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do not include an IRS Business Reply Mail envelope.
Note:
It is unnecessary and a waste of our postage resources to include an IRS Business Reply Mail envelope since the USPS has agreed to return Form 4759 to the IRS in a prepaid USPS envelope.
The authority for this is in Section 5, Requests for Special Categories of Records, of the USPS Handbook AS353, in Exhibit 5-2. -
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Various IRM sections require "return receipt requested " when sending certified mail. The United States Postal Service (USPS) provides an online feature called "Track & Confirm" providing timely assurance of receipt instead of waiting for the return receipt post card to be returned.
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With certified mail, the unique article number allows verification of delivery at no cost.
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Delivery confirmation includes information about the date and time of delivery or attempted delivery.
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When the IRM requires "return receipt requested" , then an additional fee will apply.
Note:
This does not replace the IRM requirement for "return receipt requested," even though an additional fee will apply.
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Find additional information about "Track and Confirm" , certified mail, delivery confirmation, and return receipt at: http://www.usps.com.
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Utility company information can help to locate a taxpayer. Often, taxpayers attempting to hide from the IRS and other creditors do not notify the post office of a new address. However, taxpayers generally will transfer their utility service from an old address to their new one, so when a taxpayer moves within an area served by the same utility company, the taxpayer will provide an updated address to the utility company.
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See IRM 5.1.18.13.3, Postal Tracer — Form 4759.for information on the use of postal tracers to verify these addresses.
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Sometimes during an investigation, there may be an indication that the taxpayer resides at an address, but the post office and other locator sources do not provide confirmation. Utility information can help determine who occupies a certain building. The utility company can provide the name of a person billed for the utility services.
Note:
If you provide a name and address to the utility company in person, by mail, or by phone, the utility company will probably be able to confirm the name of the person billed for the utility services in response to your request for confirmation without a summons.
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Summons the utility company to obtain the taxpayer's new address, when necessary — provide the taxpayer's name and last address in the summons.
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Use any new address or new asset information from the utility company as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
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Sole proprietors, corporations, partnerships, estates, trusts, and other entities use Form SS-4, Application for Employer Identification Number, to apply for an employer identification number (EIN).
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In the past, the IRS sent Forms SS-4 to the Social Security Administration (SSA), SSA maintained the records, and IRS employees could request a copy of a specific form. However, with the advent of weekly electronic transmissions of Form SS-4 data to SSA, the IRS no longer sends the forms to SSA.
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Donot contact SSA for any Form SS-4 processed after 1998.
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Contact SSA to obtain a copy Form SS-4 for years 1998 and prior, as needed. See IRM 21.7.13.3.2.12, Requests for Copies of Form SS-4.
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Use any new address or new asset information from SSA research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
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The Service may obtain passport information from the United States Passport Office in connection with an official investigation. A copy of the passport file can be requested with managerial approval through the SB/SE International Passport Coordinator by completing Letter 4263, Passport Letter Request.
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These requests for information from the US Passport Office are called "passport checks." Passport checks provide the following types of information:
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Passport Application — provides the last known US address and next of kin for passports issued in the last ten years;
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Consular Report of Birth — provides information on birth of the children of US citizens residing overseas;
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Certificate of Loss of Nationality — provides information on US citizens renouncing their citizenship.
Note:
This information includes the taxpayer's current address, if available. It also includes next of kin information as a third party source to contact because he/she may know the current address of the taxpayer.
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The SB/SE International Passport Coordinator will handle all passport checks.
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Send an e-mail message to"*SBSE International Passport Coordinator" if you need to contact the coordinator.
Reminder:
Be sure to send the e-mail message via secure e-mail when you include Sensitive but Unclassified (SBU) taxpayer data in the message.
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Request a passport check when the taxpayer travels overseas frequently (or there is reason to believe the taxpayer travels overseas frequently) on all of the following types of cases:
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IMF entity cases with an assessed balance that meets the Law Enforcement Manual (LEM) criteria for international and domestic cases in LEM 5.1.18.16.1, Passport Checks.
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Combination BAL DUE and DEL RET entity cases where the existing balance due and the potential liability from unfiled returns meets the LEM criteria in LEM 5.1.18.16.1, Passport Checks.
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Currently not Collectible cases closed as Unable to Locate (03), Unable to Contact (12), or international closing code (06), where the aggregate unpaid balance of assessment meets the LEM criteria in LEM 5.1.18.16.1, Passport Checks.
Caution:
Follow the appropriate Third Party Contact procedures when making Third Party Contacts. See IRM 5.1.17, Third Party Contacts.
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Prepare Letter 4263to request a passport check.
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Enter the following in Letter 4263:
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taxpayer's name and/or alias
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taxpayer's place of birth
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taxpayer's date of birth
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taxpayer's SSN
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type of information requested
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Use IDRS command code MFTRA-U to obtain the taxpayer's place of birth and/or date of birth.
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Use MFTRA-U to obtain citizenship and status information. The following citizenship and status information codes are listed in Document 6209 :
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A — US Citizen
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B — Legal Alien, Authorized to work in the US
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C — Legal Alien, Not authorized to work in the US
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D — Other
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E — Alien Student (restricted work)
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F — Conditional Legal Alien
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Save the completed Letter 4263 as a PDF file.
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Attach the PDF file of Letter 4263 to an e-mail message to your manager.
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Send the message to your manager to secure his/her approval.
Note:
To signify approval, your manager will digitally sign the PDF file of Letter 4263, include your e-mail address on the "Cc" line, and send the e-mail message, including the digitally signed Letter 4263 as an attachment, to the International Passport Coordinator at "*SBSE International Passport Coordinator" .
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Use any new address or new asset information received from the passport office as discussed in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
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See IRM 5.1.12.25, Mutual Collection Assistance Requests, if you determine that the taxpayer:
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resides in a treaty country, or
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has assets in a treaty country.
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This IRM discusses the Treasury Enforcement Communications System (TECS) and provides guidance for using the historical travel information in TECS.
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TECS also is discussed in IRM 5.1.12, Cases Requiring Special Handling. See IRM 5.1.12.26, Treasury Enforcement Communications System for a discussion regarding when balance due taxpayers may be placed on TECS, the role of the TECS Coordinator, notifications by Immigration and Customs Enforcement (ICE) that taxpayers are arriving in the United States, the criteria for entering a taxpayer into or removing a taxpayer from TECS, and procedures for requesting entry or removal including expedited entry procedures. As discussed in IRM 5.1.12, revenue officers must help maintain the TECS database by requesting that appropriate taxpayers be entered into TECS or be deleted from TECS. Maintaining TECS is critical because once taxpayers are entered into TECS, the Service will receive information when those taxpayers travel to and from the United States for business, employment, or personal reasons.
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TECS provides information in two ways as mentioned above:
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Employees can query TECS for historicaltravel information which is discussed in this IRM.
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The Service may also receivecurrent travel information from the TECS Coordinator when taxpayers in TECS are traveling into the United States. This is mentioned in IRM 5.1.12 and is discussed in detail in IRM 5.1.8, Courtesy Investigations.
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This IRM discusses using the historical travel information available in TECS as a locator source providing useful information about taxpayers so employees can attempt taxpayer contact or locate asset information.
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Be alert for case situations where you can use the historical travel information in TECS to assist you in collecting delinquent liabilities to close your assigned cases.
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Follow the procedures below to request historical travel information from TECS.
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Access the TECS webpage at: http://sbse.web.irs.gov/Collection/Programs/TECS/Default.htm . You can also access the webpage by going to the SB/SE Collection webpage and clicking on Treasury Enforcement Communications System (TECS).
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TECS is a database maintained by the Department of Homeland Security, and historical information on an individual's travel is included in it. TECS contains extensive records of commercial airline flight arrivals and departures. TECS also contains other records of air and sea travel, records of border crossings, and the specific dates that individuals have traveled to and from the United States.
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The travel information in TECS can facilitate collection of delinquent liabilities from taxpayers who are not subject to ordinary administrative and judicial collection procedures because they often reside outside the jurisdiction of the US Courts.
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TECS provides information that may be nototherwiseavailable to the Service, such as where a taxpayer has traveled. This travel information may lead to the discovery of where the taxpayer has assets or conducts business activity. Additionally, TECS travel information can help determine the taxpayer's correct country of current residency.
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Use secure e-mail (encrypted messages) to transmit any request for historical TECS travel information.
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Use secure files and folders to store any TECS travel information.
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Stamp all historical travel information retrieved from TECS "OFFICIAL USE ONLY" if you create a hardcopy.
Note:
If you do not have an "OFFICIAL USE ONLY" stamp, you may write "OUO" in red ink on any hard copy document (or on the top sheet of any multi-page document which is stapled together.
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Maintain the security of TECS travel information at all times.
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Use TECS historical travel information to:
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learn possible address information to attempt taxpayer contact or identify assets,
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determine a taxpayer's status regarding his/her contention regarding his/her US residency or non-residency,
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confirm the validity of information on the taxpayer's returns or collection information statement
Caution:
Never confirm or deny the existence of a TECS record of historical travel information if a taxpayer asks how you learned about his/her past travel. Taxpayers must submit a written request to obtain information about the source of the travel information. Follow the procedures below if a taxpayer wants to request source information.
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The Department of Homeland Security requests that IRS employees not discuss the Treasury Enforcement Communications System (TECS) with taxpayers.
Caution:
When you are talking with a taxpayer to inform him/her that you may place him/her on TECS, do not discuss the existence of TECS with him/her. Instead, follow the language in letter 4106 and proceed as follows. -
Advise the taxpayer that you may notify the Department of Homeland Security about the unpaid tax liabilities (which are public record from a previously filed lien), and that subsequently:
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a Customs and Border Protection Officer may interview him/her when he/she enters the country,
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the IRS may be advised of the taxpayer's arrival, and
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the IRS may be provided with information that will enable the IRS to contact the taxpayer.
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Advise the taxpayer to do the following if a taxpayer asks how you learned about his/her past travel:
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write a letter requesting source information under the Freedom of Information Act (FOIA), and
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send the letter to the address provided at The U.S. Customs and Border Protection website: http://www.cbp.gov/xp/cgov/admin/fl/foia/
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Do not use Form 5523, TECS Query Request to request travel information from TECS.
Note:
IRM 9.10.2, Treasury Enforcement and Communication System and International Fugitive Notices discusses TECS, but the intended audience is Criminal Investigation (CI). IRM 9.10.2.7 prescribes the use of Form 5523 to request information from TECS, but SB/SE Collection Field function (CFf) employees should not use Form 5523.
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Prepare a memorandum to the TECS Coordinator and include the following information in the memorandum:
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Taxpayer Name (Last, First, Initial)
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Known Alias(s)
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SSN
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Place of Birth (City & State or Country)
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Passport Number
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Citizenship (if not U.S.)
Note:
A template containing the suggested language for this memorandum is available in Microsoft Word format on the TECS webpage and it will be converted to a fillable form in the near future.
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Locate the memorandum on the TECS webpage by following these steps:
Note:
See IRM IRM 5.1.17.1, TECS Webpage.
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Access the TECS webpage at: http://sbse.web.irs.gov/Collection/Programs/TECS/Default.htm.
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Click on the link for "TECS Travel Request."
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Entitle an e-mail message "Request For TECS Historical Travel Information" .
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Include all applicable, available information about the traveler in the memorandum.
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Save the memorandum as a PDF file.
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Attach the PDF file of the memorandum to the e-mail message.
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Send the message (with the attachment) via secure e-mail to the TECS Coordinator at "*SBSE International TECS Coordinator" .
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TECS contains information about specific dates of past international travel and locations of travel for individuals over a period of several years. It has extensive information concerning airline travel and also contains some information on other modes of travel into the US. A request for this information will provide the revenue officer (RO) with all travel information that is available; there is no need to specify particular time periods of travel.
Caution:
Never confirm or deny the existence of a TECS record of historical travel information if a taxpayer asks how you learned about his/her past travel. Taxpayers must submit a written request to obtain information about the source of the travel information. See IRM 5.1.18.17.4.2, Taxpayer Request for Source Information.
Reminder:
Stamp all TECS historical travel information documents (i.e., all documents you print) "Official Use Only" and handle them according to IRM 5.1.18.17.3, Keep TECS Travel Information Secure.
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Note the following examples of how TECS historical travel information may be helpful to you:
Example:
A revenue officer (RO) requests TECS historical travel information to learn how a taxpayer living in India paid for airline tickets. Up to this point, the RO has not been able to identify any levy sources for this uncooperative taxpayer. The RO discovers that the payment was made from a bank account in the US. The US bank account is in the name of a family trust. By performing further case investigation, The RO verifies that the family trust is not authentic.
The RO coordinates with Advisory and Area Counsel to prepare a transferee assessment, nominee lien, and nominee levy which results in collection of part of the balance due. Then the taxpayer contacts the RO to discuss resolution of the remaining the balance.Example:
A revenue officer (RO) requests TECS historical travel information because he/she is unsure where the taxpayer resides. The case currently has an address of record in Florida, but the RO has not been able to contact the taxpayer. The RO believes the taxpayer may often be out of the United States. Historical information in the case file shows the taxpayer once resided in Great Britain. The TECS historical travel information reveals that the taxpayer visited Canada three times in the last 18 months. Through subsequent investigation, the RO learns that the taxpayer is now residing permanently in Canada but continues to use the Florida address as a mail drop.
This information leads the RO to refer the case for an outgoing Mutual Collection Assistance Request (MCAR) to request assistance from Canada, our treaty partner. The MCAR results in the collection of the outstanding liabilities via levy. -
Use any new address or new asset information received from TECS research as discussed in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
Caution:
Never confirm or deny the existence of a TECS record of historical travel information if a taxpayer asks how you learned about his/her past travel. Taxpayers must submit a written request to obtain information about the source of the travel information. See IRM 5.1.18.17.4.2, Taxpayer Request for Source Information
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See IRM 5.1.12.25, Mutual Collection Assistance Requests, if you determine that the taxpayer:
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resides in a treaty country, or
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has assets in a treaty country.
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A taxpayer is required to file a Foreign Bank and Financial Account Report (FBAR), Form TD F 90-22.1, if he/she has financial interest in, or signature authority over, one or more foreign financial accounts that have an aggregate value greater than $10,000 at any time during a calendar year.
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When a taxpayer files an FBAR form, IRPTR will reflect that Form TD F 90-22.1 was filed by or for the taxpayer. However, IRPTR does not provide any of the specific information entered on the form such as the name of the bank, account number, account balance, etc.
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See IRM 5.9.4.21, Foreign Bank and Financial Account Reports (FBAR).
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FBAR forms are loaded onto the Currency Banking Retrieval System (CBRS) so all the information on the FBAR form will be available from CBRS. IDRS command code IRPTR includes the filing of an FBAR (Foreign Bank and Financial Account Report) form by a taxpayer. Although it will not reflect all information present on the FBAR form, additional information may be obtained by researching the Currency Banking Retrieval System (CBRS) which lists all FBAR filings. CBRS will reflect any foreign bank account or other information that was listed on the FBAR form.
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Conduct CBRS research when IRPTR reflects that a taxpayer has filed an FBAR form to obtain the name of the bank where the account is located, the amount in the account, co-owners, and other useful information. Complete an OL5081 to become a system user and obtain a User ID and password.
Reminder:
The information is not always complete as it will only reflect the information the taxpayer entered on the form.
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Use any new address or new asset information obtained from CBRS research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
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The Centralized Asset Research System (CARS) gathers levy source information, prioritizes it, and uploads it to IDRS. CARS uses both internal and external sources.
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View the information on:
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IDRS with command code LEVYS,
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the ACS levy source screen, and/or
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the ICS levy source screen.
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Refer to IRM 5.11,NOTICE OF LEVY.
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Use any new address or new asset information obtained from CARS research as discussed above in IRM 5.1.18.5.1, Use of Asset Locator Research Results.
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The internal sources for CARS are:
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Information Returns Master File (IRMF) for W-2 and 1099 information (IRP),
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FTD Levy Program (FTD) for BMF deposit information,
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Remittance Processing System (RPS) for information on payments made through service centers, and
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Federal Contractor File (FCF)
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Electronic Filing System (ELF)
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Federal Payment Levy Program (FPLP).
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The external sources for CARS are:
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State employment commissions (EC),
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Office of Personnel Management (OPM) for federal employees,
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United States Postal Service (USPS) for postal employees, and
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Defense Manpower Data Center (DMDC) for retired federal employees (military or civil service).
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The Taxpayer Information File (TIF) can hold a maximum of fifteen levy sources. The type of source is identified by a literal. This literal appears on the far right of the levy source screen.
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The TIF levy sources are re-prioritized when a new levy source is added to the TIF.
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The TIF levy sources have the following literals and priority:
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FCF — Federal Contractor File
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FPLP — Federal Payment Levy Program
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RT — Real time non-wages sources manually loaded to IDRS
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EC, FTD, RPS, DMDC, OPM, and USPS
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RT — Real time Wage Sources
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ELF — Electronic Filing System
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IRP — with additional priorities as displayed in the following table:
IRP Priorities -
INT — interest,
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W-2 — wage document,
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1099-R — document,
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CTR — Currency Transaction Report, and
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all other documents.
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Some businesses have multiple locations and want all levies sent to one centralized address. You may be contacted by a levy recipient or other business contact to provide a centralized address whenever you have:
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contacted a business to obtain their address for serving levies, or
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mailed a levy to the levy source address reflected in the Taxpayer Information File.
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Handle any request for centralized address as follows:
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load the centralized address information into the centralized address subroutine of CARS when you initially create and upload the levy source address to IDRS, or
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update the levy address on ICS to the centralized address for the specific case.
Note:
When you update ICS for the specific case, that update will not upload the centralized address information to IDRS.
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Attempt to change the levy address on IDRS to reflect the centralized address requested by the levy recipient whenever possible.
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Follow these procedures to update a centralized address to IDRS.
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Inform any levy recipient who wants their centralized address updated on IDRS to submit their request on company letterhead and include the following information:
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Address for levy mailings, and
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Employer Identification Number (EIN).
Note:
Banks and other financial institutions must include the American Bankers Association (ABA) routing and transit numbers for each branch.
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Submit the update to the CARS Systemic Levy Analyst upon receipt of a written request using one of the following methods to submit the update:
Preferred Method Alternate Method -
Scan the written request.
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Send a copy of the scanned document via secure e-mail to:
*SBSE CARS Systemic Levy Analyst
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Mail the written request to:
Internal Revenue Service
Attn: Systemic Levy Analyst
SE:S:C:CP:GPPA C9-358
5000 Ellin Road
Lanham, MD 20706
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This section discusses credit bureaus, the Fair Credit Reporting Act, and credit reports.
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At the time of publication of this IRM, there are three principal consumer credit bureaus:
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Equifax,
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Experian (formerly TRW), and
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TransUnion.
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Each credit bureau company maintains consumer records that may be queried by SSN or taxpayer name and address using a personal computer and the appropriate credit bureau accessing software. Businesses subscribing to the credit bureaus, including the IRS, create a line item on the credit bureau database every time they access it. The credit bureaus provide credit information (credit reports) to their subscribers.
Note:
At the time of the publication of this IRM revision, Headquarters has arranged a national contract with Experian.
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The Fair Credit Reporting Act (FCRA) was an amendment to the Consumer Credit Protection Act. The FCRA went into effect on April 24, 1971. The FCRA defines those individuals and organizations who are entitled to receive consumer credit information. The FCRA further defines the nature and extent of the information which can be given out by these consumer reporting agencies.
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The Fair Credit Reporting Act was intended to apply only to reports relating to a consumer's eligibility for personal credit or commercial benefits as a consumer and not to the consumer's business transactions. Accordingly, the FCRA does not restrict the availability of credit reports of corporations, partnerships or trusts.
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See IRM 5.17.6.10, Fair Credit Reporting Act, for further information.
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Do not violate the Fair Credit Reporting Act. Unauthorized access to credit bureau data is a violation of the Fair Credit Reporting Act. The Act provides both civil and criminal penalties for obtaining information under false pretenses and for unauthorized disclosure by officers and employees of the consumer reporting agencies.
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Report all violations of the Fair Credit Reporting Act to TIGTA.
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Full consumer credit reports are one of the most effective locator sources currently available. The information we receive from full consumer credit reports requires considerable analysis and knowledge in order to properly interpret the credit bureau data and subscriber information. The ability of Service employees to use credit reports effectively and to correctly interpret the data is critical so the Service can take full advantage of and receive the greatest benefit from this locator source.
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The full credit report identifies other subscribers who have made an inquiry regarding the taxpayer's credit history. These subscribers can be an important source for Service personnel to contact for taxpayer information, such as current address and financial data.
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Use taxpayer's SSN or taxpayer name and address to query for a full consumer credit report. It supplies loan, employment, financial, and payment information.
Note:
Do notorder short reports from the credit bureaus because the data they provide is available at no additional charge through our national asset/locator contracts.
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Order a full consumer credit report to receive information about a particular taxpayer when you need to collect an assessment on that taxpayer.
Note:
As noted above, access to full consumer credit reports is restricted by the Fair Credit Reporting Act. Full consumer credit report information is available without a summonsifwe have a BAL DUE on a taxpayer.
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Do notsecure full consumer credit reports on DEL RETs or other investigations unless you serve a summons.
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Become familiar with full consumer credit reports.
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Learn to use credit reports appropriately and effectively.
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Interpret the data correctly.
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Use the credit report data, including the subscriber information, to locate taxpayers and their assets.
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Secure full reports according to the case criteria discussed below.
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Secure consumer credit reports according to the specific case criteria described in LEM 5.1.18.20.2.1, Consumer Credit Reports.
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Use the credit web browser to secure full credit reports from the national contract credit bureau for any BAL DUE taxpayer.
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See IRM 5.1.18.20.3, Credit Bureau Web Browser.
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The Service may obtain full consumer credit reports from credit bureaus without a summons, court order, or written permission of the taxpayer on certain types of cases where the Service:
-
has an assessment lien under IRC 6321, Lien for taxes,
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has entered into an offer in compromise or installment agreement with the taxpayer, or
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has reduced the liability to judgment.
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This applies to the following types of cases:
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IMF (Individual Master File) Balance Due Accounts (BAL DUEs)
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BMF (Business Master File) BAL DUEs on sole proprietors
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Individual partners for partnership BMF BAL DUEs where the partner is liable for the tax under state law
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An individual member for single member limited liability company (LLC) BAL DUEs where the individual is liable for the tax under Treas. Reg. 301.7701-2.
Note:
See IRM 5.1.21,Collecting from Limited Liability Companies, to identify the taxpayer liable for the tax.
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A fiduciary for BAL DUEs of a trust, where the Service has an assessment lien under IRC 6321 against the individual fiduciary
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When you need to receive information about a taxpayer to collect an assessment (i.e., you have an assigned BAL DUE) on that individual taxpayer or the taxpayer is jointly and severally liable for an IMF or BMF assessment, you can obtain a credit report on that individual taxpayer without a summons as displayed in the table below.
Type of Liability BAL DUE Assessed under Obtain Credit Report under Single Individual
(Form 1040 - MFT 30)SSN of Individual SSN of Individual Married Couple (Joint Filers)
(Form 1040 - MFT 30)SSN of Primary Spouse SSNs of Both Individuals Married Couple (Separate Filers)
(Form 1040 - MFT 30)SSN of Individual(s) Who Owes SSN of Individual(s) Who Owes Sole Proprietor
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of Business EIN of Business and SSN of Proprietor(s) Note:
Under the limited conditions that a husband and wife are both liable for employment taxes reported under a sole proprietorship EIN, make separate requests under the SSN of each spouse.
Partnership
(Form 1065 - MFT 06)
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of Partnership EIN of Partnership and SSN of Partner(s) liable under state law Trust
(Form 1041 - MFT 05)EIN of Trust EIN of Trust Note:
Do not request a credit report on the individual who is the fiduciary.
Corporation
(Form 1120 - MFT 02)
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of Corporation EIN of Corporation Note:
Donot obtain a credit report under the SSN of an Individual who is a Corporate Officer to collect a corporate assessment .
LLC where the individual owner is the liable party
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of the LLC
or
EIN of the owner of the LLCEIN of the LLCandSSN of Individual Owner Note:
Under the limited conditions that a husband and wife are both liable for employment taxes of the LLC, make separate requests under the SSN of each spouse.
LLC where the LLC is the liable party
(Form 1120 - MFT 02)
(Form 1065 - MFT 06)
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of the LLC EIN of the LLC Note:
Do not obtain a credit report under the SSN of an Individual who is a member of an LLC if the LLC is the liable party.
Individual responsible for Trust Fund Recovery Penalty
(Form 2749 - MFT 55)SSN of Individual SSN of Individual Note:
Only obtain a credit report under the SSN of an Individual who is a responsible party after you assess the TFRP under the SSN of that Individual.
Liability assessed against one spouse in a community property state
(Form 1040 - MFT 30)
(Form 941 - MFT 01)
(Form 940 - MFT 10)
(Form 94X - various MFTs)EIN of Business
or
SSN of Liable SpouseEIN of Business andSSN of Liable Spouse Note:
Consult with Area Counsel to determine whether a request under the SSN of the unnamed spouse is allowed in a community debt state.
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In instances where you have a combination (combo) case (i.e., a case with both a BAL DUE and DEL RET for the same taxpayer), you may obtain a full credit report without a summons, court order, or written permission of the taxpayer.
Caution:
Use the credit report information you secure on a combo case to assist in collecting only the BAL DUE.
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Do not use the full report information as the basis for an assessment under IRC 6020(b) or the Substitute for Return Program (SFR).
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Do not use the full report information as the basis for a referral to Examination or Criminal Investigation.
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Issue a summons per IRC 7609 to use a full credit report as the basis for a referral to the Examination or Criminal Investigation or as the basis for an SFR assessment.
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Do notdisclose credit report information obtained without a summons, court order, or written permission of the taxpayer, to Criminal Investigation, Examination, Treasury Inspector General for Tax Administration (TIGTA), or any other government agency. See IRM 5.1.18.3.1 , Disclosure of Locator Services Information.
Note:
You may provide the full credit report or information from a credit report to the taxpayer who is the subject of the report unless you make a determination that its disclosure would seriously impair Federal tax administration under IRC 6103(e)(7), or in the context of a Freedom of Information Act (FOIA) request, that its disclosure could reasonably be expected to interfere with ongoing law enforcement proceedings.
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Notify the credit bureau immediately via the Area Collection Automation Coordinator (CAC) in instances where you erroneously obtained a full credit report on a non-BAL DUE case or on the wrong taxpayer.
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Contact the Area Collection Automation Coordinator (CAC).
Note:
You are required to make immediate notification so the credit bureau may delete the inquiry from the taxpayer's credit history. The CAC will send a memorandum to the credit bureau to advise of the inappropriate access.
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Remove all of the credit report information from the case file.
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Destroy all of the credit report information.
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Do not access credit reports on yourself, friends, relatives, other employees, or any person for which you do not have an open BAL DUE, DEL RET, or combination BAL DUE/DEL RET assigned to you.
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Do not violate the Fair Credit Reporting Act by making an unauthorized disclosure as noted above. See IRM 5.1.18.20.1, Fair Credit Reporting Act.
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Take reasonable measures to protect against unauthorized access to or use of credit information while you are working on a case.
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Take reasonable measures to avoid inadvertent or duplicate inquiries as they may negatively affect a consumer's credit rating. Notify the Area CAC of any inadvertent or duplicate inquiries.
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As discussed above, full consumer credit reports may be secured on a BAL DUE taxpayer without serving a summons.
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Full consumer credit reports may not be secured on DEL RETs or other investigations unless a summons is served to the credit bureau and notice of the summons is provided to the taxpayer per IRC 7609(a).
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Serve a summons on the credit bureau whether or not the taxpayer has filed a return for any period when you request a full credit report which includes, or may include, an inquiry into the amount of the taxpayer's liability for any period on:
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any IMF and/or BMF DEL RET taxpayer assigned to you, or
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any taxpayer assigned to you as an other investigation.
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Refer to IRM 25.5, SUMMONS HANDBOOK, for further information on IRC 7609 summons.
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See IRM 25.5.5.3, Taxpayer Records In Possession of Others.
Reminder:
This IRM guidance also applies in cases involving individual nominees or alter egos.
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Provide notice of the summons to the taxpayer.
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Do not input TC 360 to attempt to recover the fees for a credit report from the taxpayer as summoned information is an administrative expense with no charge to the taxpayer.
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Retain a copy of the summons and the full credit report with the Collection case file if the summons inquired into the amount of the taxpayer's liability so management can verify the appropriateness of using the summoned information.
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The Fair and Accurate Credit Transactions Act of 2003 requires that persons who dispose of credit information take reasonable measures to protect against unauthorized access to or use of credit information in connection with its disposal.
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Follow these procedures for proper disposal of the credit information.
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Determine whether or not you need to retain the credit report for review by your group manager (GM).
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Provide the credit report to your GM for review, if necessary.
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Remove the credit report from the closed case file after your GM has completed his/her review orif he/she does not need to review it.
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Shred the credit report.
Exception:
Leave the credit report in the case file if the taxpayer has exercised his/her right to a Collection Due Process (CDP) hearing.
Appeals may need to review the credit report to determine what collection alternatives are available to the taxpayer during the CDP hearing.
Appeals will destroy the credit report when Appeals closes the case.
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Credit report information can be very helpful when trying to locate a taxpayer or his/her assets. Access to the national contract credit bureau is controlled by the credit bureau web browser.
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To ensure compliance with the Fair Credit Reporting Act (FCRA), Service policy limits access to credit report data to employees who:
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are authorized to access the credit bureau web browser, and
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have an open assignment of a balance due case.
Note:
At the time of the publication of this IRM, Smart.Alx is the credit bureau web browser that is required to access credit bureau information and the national contract credit bureau is Experian.
Caution:
Only access full credit report information when you have an open, assigned balance due case on a taxpayer.
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Use the credit bureau web browser to secure full credit reports from the national contract credit bureau for any assigned BAL DUE taxpayer. Complete an OL5081 to become an authorized system user and obtain a User ID and password.
Note:
It is up to local area management to designate the authorized users for their areas. In some areas, access to the web browser is centralized to limit unauthorized and/or inadvertent accesses to sensitive credit bureau data.