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Part 5. Collecting Process

Chapter 12. Federal Tax Liens

Section 6. Procedures for Lien Processing (Cont. 1)

5.12.6  Procedures for Lien Processing (Cont. 1)

5.12.6.5 
Processing Lien Related Certificates

5.12.6.5.1  (11-30-2007)
Certificate of Release

  1. IRC 6325 requires that a certificate of release (Form 668-Z) be issued within 30 days of a determination by the Service that the tax liability is satisfied or becomes legally unenforceable.

  2. Generally, the certificate of release is systemically generated from data downloaded to the ALS from master file. In some cases, the release can be requested manually. Examples of appropriate times to manually release liens are:

    1. taxpayer paying with certified funds;

    2. pending property transactions (the certificate is provided upon receipt of payment);

    3. liability discharged in bankruptcy;

      Note:

      It is not appropriate to release a NFTL on a discharged liability if the pre-petition NFTL attached to exempt, abandoned, or excluded property against which the Service might enforce its in rem property interest. Also, a NFTL for discharged tax liabilities should not be released until after the Service receives its distribution in the bankruptcy case.

    4. OIC offered amount is full paid.

  3. In the above referenced examples, issue an immediate release, if requested. Such requests may be faxed or secure e-mailed to CLU. Highlight " immediate release" at the top of the request.

  4. When full payment is made by personal check, the statutory 30 day requirement to release the NFTL does not begin until the funds are received. The Secretary has determined that 15 business days may lapse after receipt before the 30 day release requirement begins.

  5. If a credit line check is received, the 30 day release period will begin 15 business days after receipt. However, if the credit line check is converted into certified funds, issue an immediate release. Additional procedures are found in IRM 5.12.6.5.1.5.

  6. Provide taxpayers with a certificate of release in cases where the liability is satisfied and the taxpayer is paying with certified funds.

  7. Issue a certificate of release if the collection statute has expired, and the taxpayer requests a release.

  8. Releases are printed and mailed twice weekly.

    Note:

    Normally very few days remain on the 30-day period when releases are systemically generated. Prompt processing by the lien unit is required.

5.12.6.5.1.1  (12-01-2005)
Department of Justice or Court Ordered Requests for Issuance of Certificates of Release

  1. Occasionally, it is necessary for the IRS to issue certificates of release based on court decisions or at the request of the Department of Justice.

  2. These requests will be acknowledged and the release will be prepared and issued immediately upon receipt.

  3. The requesting employee will provide all pertinent information to prepare the release, including the taxpayer's current address.

  4. Follow instructions provided by the requesting employee for recording the release. It may be necessary for the employee to hand carry the document to the recording office. The employee may pay the recording fee and be reimbursed through the travel voucher system or when applicable, submit Form 3982 to the recording official so that the cost may be added to their monthly billing invoice.

  5. A history must be added to ALS by the CLU that the certificate of release was hand carried, include the date the certificate was provided to the employee, and the requesting employee's name.

  6. When the release is hand carried to the recording official, the requesting employee will forward a copy of the certificate of release with the recording data to the CLU for ALS input.

5.12.6.5.1.2  (12-01-2005)
Issuing a Certificate of Release When Receiving Electronic and Credit Card Payments

  1. DO NOT issue an immediate release when credit or debit cards are used to full pay the tax liability. It is unlikely that a release will be requested from a credit or debit card payment because the Service may accept such payments only within three years after assessment. See IRM 5.14.10.5. Credit and debit cards are barred for satisfaction of liabilities because of the possibility of chargeback of such payments over a period of months. Certificates of release will be issued systemically when the account is fully satisfied (Status12) by use of the ALS/IDRS module satisfaction process.

  2. If a debit or credit card is accepted to satisfy a tax liability and a request for a release is received, the lien may not be released until the period for chargeback has run. The maximum period for chargeback is 120 days for payment by credit card under 15 U.S.C. § 1666, and 100 days for payment by debit card under U.S.C, § 1693f. For general information regarding payment of tax liabilities with credit and debit cards by individuals, see IRM 5.14.10.5.

  3. Issue an immediate certificate of release when full payment of the liability is made by electronic funds transfer (EFT). These payments become irrevocable in a short period of time.

5.12.6.5.1.3  (11-30-2007)
Certificates of Release Requested by the Taxpayer Advocate or Appeals Offices

  1. The Taxpayer Advocate and Appeals offices have the authority to request release of Notices of Federal Tax Lien in conjunction with case resolution. In these instances, TAS and Appeals must follow IRC lien release statutory requirements.

  2. If the taxpayer is requesting a certificate of release for a pending property settlement, and the TAS has determined there is a hardship situation, TAS should verify:

    1. imminent refinancing with the settlement agency;

    2. the government will receive its interest in the property; or

    3. the liability is unenforceable.

  3. Request certificates of release by completing and faxing Form 13974 to the FORT with Form 3210.

  4. The FORT will acknowledge receipt and provide requested documents within time frames established with TAS and Appeals. Such requests will be acknowledged within one business day but not later than three business days.

5.12.6.5.1.4  (11-30-2007)
Partial Release

  1. Circumstances sometimes dictate that a partial release of the NFTL is necessary.

  2. Forward requests for partial releases to CLU, if you do not have access to the ALS lien release option.

  3. CLU generally input requests within five days of receipt of the request.

  4. The requesting employee must provide the appropriate entity, TIN (make sure this is the TIN of the person no longer liable for the tax liability), tax type, tax period, unpaid balance of assessment, filing location, etc., to complete the certificate of release.

  5. Provide the reason the partial release is being requested. For example, there is a joint account and only one taxpayer requested an offer in compromise and the offer was accepted. The agreed amount has been paid and the tax examiner is requesting release of the NFTL.

  6. A partial release will be generated when there are multiple tax periods and the taxpayer requests a release for a specific tax period that has been fully satisfied or has become legally unenforceable. However, standard practice should be to issue a release after all modules are satisfied.

  7. A partial lien release will be prepared using ALS. The release (Form 668Z) is prepared with a standardized paragraph (across the face of the form) explaining the reason for release, identifying the taxpayer and the tax period(s) satisfied.

  8. CLU procedures are found in IRM 5.19.12.2.2.6.3.

5.12.6.5.1.5  (11-30-2007)
Taxpayer Request for Release

  1. Normally, requests for a certificate of release must be in writing and signed by the taxpayers.

  2. Requests received by fax may be accepted if contact has been made by phone, or in person and the taxpayer history file is documented with the date of contact and a notation is made that the taxpayer wishes to send the request by fax.

  3. Complete requests within 5 days of receipt, except when taxpayers are waiting on the certificate. In those cases, prepare the certificate of release immediately upon receipt of certified funds.

  4. Occasionally, taxpayers request a certificate of release (Form 668Z) when the NFTL has self-released. Check IDRS for the account status.

    If the liability and then,
    collection statute has expired a request for a copy of the certificate of release is received provide the taxpayer or the representative with a copy of the certificate.
    is full paid there is a credit balance or the balance is zero issue a certificate of release.

    Note:

    Notify your manager that a credit balance exists or the account balance is zero and the taxpayer has no other liability.

    is not full paid there is a balance inform the taxpayer that there is a balance due on the account and that a certificate of release will not be issued.

    Note:

    Refer the request to the appropriate function based on the status of the account. Accounts that are not in status 22, 26, 71, or 72 will be resolved by referring the taxpayer to the toll free number for assistance or in hardship situations to the nearest local Taxpayer Advocate Service office. If the issue can be resolved within 24 hours or if the issue cannot be completely resolved within 24 hours, but steps are taken to begin resolving the taxpayer's issue within 24 hours, then do not refer the taxpayer to the Taxpayer Advocate Service unless the taxpayer asks for the referral. See IRM 13.1.7.2, Taxpayer Advocate case criteria.

  5. Taxpayer's are provided a copy of the certificate of release at their request when the tax period is full paid. This procedure also applies to requests received by the CLU.

  6. Inform the taxpayer that the IRS does not retain recorded copies of the certificate of release. Recorded copies can only be obtained from the recording official.

  7. When the taxpayer makes us aware that a copy of the lien cannot be found in the recording office, request that the taxpayer contact the credit reporting service to obtain information regarding the lien filing.

  8. Upon receipt, enter the lien information into the database (creating a "not to be filed lien" , if necessary) using SCreate, then generate the release.

  9. Provide the taxpayer with a copy of the certificate of release (Part 1 - Recording Office) and a copy of Notice 48, Release of Federal Tax Lien, if the taxpayer intends to have the release recorded.

  10. Document the ALS history.

  11. CLU procedures are found in IRM 5.19.12.7.6.3.

5.12.6.5.1.6  (11-30-2007)
Taxpayers May Receive Form 3982, Billing Support Voucher (BSV), for Release Recording Fees

  1. If a tax liability has been satisfied and a certificate of release was not received by the recording office, provide taxpayers with a Form 3982, Billing Support Voucher (BSV), to cover recording fees.

    Note:

    Some recorders may not accept the BSV. In those cases, the taxpayer must pay recording fees. If the taxpayer wants the release recorded immediately, they must pay the recording fee.

  2. If the request for release is due to bankruptcy or collection statute expiration, provide taxpayers with Notice 48, Release of Federal Tax Lien. The notice informs them of the requirement to pay the recording fee.

  3. If immediate recordation is not required, inform the taxpayer the certificate will be mailed to the recording office.

5.12.6.5.1.7  (11-30-2007)
Lien Release Tracking System

  1. As a means of verifying the date certificates of release leave the IRS, a copy of the billing support voucher that lists any release will be date stamped by the IRS mail room or U. S. Post Office and retained.

  2. Retention of these documents will be the responsibility of the Centralized Lien Unit.

  3. Billing support vouchers will be retained in such a manner as to be easily retrievable, i.e., in date order by year, by state, by recording office.

  4. The retention period is six (6) years, three (3) months.

  5. Billing support vouchers retained to support the recording office invoices meet the requirement in (4) above, if the voucher is appropriately date stamped.

5.12.6.5.1.8  (11-30-2007)
Certificates of Release Not Found in Recording Office

  1. Occasionally the certificate of release cannot be located by the recording office even though ALS shows that the release was issued. Requests for copies of releases are routinely received by CLU from taxpayers or their representatives, but sometimes are received by revenue officers.

  2. The original copy of the certificate of release must be reprinted. These documents should be processed the same day notification is received.

  3. Recording fees will not be posted to the taxpayer's account.

  4. If a taxpayer is waiting on the certificate, inform him/her that he/she can take the copy to the recording office, however, a recording fee must be paid. If the taxpayer elects to record the release, abate the release fee from the taxpayers account OR provide the taxpayer with a signed copy of Form 3982, Billing Support Voucher for Lien and Certificate Fees, for jurisdictions that accept them.

  5. Provide the taxpayer with a copy of Notice 48, Release of Federal Tax Lien when the statute has expired. The taxpayer will be responsible for the recording fee.

  6. Input an ALS history indicating the date and to whom the release was provided.

5.12.6.5.2  (10-01-2003)
Certificate of Revocation

  1. The certificate of revocation is issued when a lien has been released in error. There are two versions of the certificate of revocation.

    1. Form 12474 - issued to revoke a release that was requested in error.

    2. Form 12474A - issued when a NFTL was not refiled timely and the collection statute expiration date has not expired.

  2. Revocation requests are input by CLU within five days of receipt.

  3. Requesting employees will complete one of the forms listed in (1) above, in draft form. Attach a note explaining the facts related to the revocation and secure e-mail the request for approval to the area Advisory group.

  4. Bankruptcy Specialists will submit their requests to Insolvency Advisors for approval.

  5. Advisory will approve the request for revocation, if appropriate and may input the revocation to ALS.

  6. If the revocation is not input to ALS, use secure e-mail to attach the request to Form 13794. If only Form 13794 is used to request CLU input of the revocation, complete the form and in bold print, write revocation across the top.

  7. If revocations appear in the ALS manager's queue, CLU may generate certificates of revocation without contacting the functional manager. Functional approval occurred prior to input of the certificate.

  8. If a new NFTL filing is being requested, instructions should be provided to the recorder to record the revocation prior to recording the NFTL.

  9. A new NFTL must be filed to reestablish the government's priority. The employee requesting the revocation is also responsible for determining that the revocation has been recorded or issuing a request to the CLU for assistance in determining the status of the revocation, when requesting issuance of a new NFTL.

    Note:

    Although priority may be lost to competing liens - both those in existence when the NFTL was erroneously released, and those coming into existence between the erroneous release date and the revocation/reinstatement date, it is nevertheless important to use the revocation and reinstatement procedures in order to correct the presumptive conclusive extinction of the lien under IRC Section 6323(f)(1)(a), and prevent additional loss of priority when future competing liens arise, especially where significant property interests exist or are reasonably anticipated to come into existence during the life of the extended collection statute.

  10. When the recorded certificate of revocation is returned, recording information will be added to the ALS history.

5.12.6.5.2.1  (11-30-2007)
Partial Revocations

  1. Issue a partial revocation when a release is issued in error on joint liabilities where one party remains liable for the tax.

  2. Partial revocations cannot be completed on ALS. They must be manually prepared. Use the IRS Intranet or ICS macro versions of Forms 12474 and 12474A.

  3. Issue a partial revocation when a lien is not refiled timely on a specific period on a multiple period lien.

  4. The requesting employee will:

    1. prepare a request explaining the facts related to the revocation and either Form 12474 or 12474A) for partial revocation for all appropriate NFTLs;

    2. manually prepare the partial revocation, using the NFTL serial number,

    3. obtain the group managers approval, if necessary, and secure e-mail the request to the area Advisory group for approval

    4. document the ICS history,

    5. Advisory will approve the partial withdrawal, if appropriate, scan and secure e-mail or fax the completed document to CLU for processing.

  5. The requesting employee will also inform CLU of their intent to file a new NFTL.

  6. The partial revocation will be added to the billing support voucher and mailed to the recorder.

5.12.6.5.2.2  (11-30-2007)
Issue a Certificate of Release When Liability is Full Paid After Revocation

  1. When a recorded NFTL is erroneously released generally a certificate of revocation of the release is filed with the appropriate recording office.

  2. The recorded NFTL remains on file and continues to encumber the taxpayer's property, but does not establish IRS's priority. A new NFTL must be filed to re-establish priority.

  3. If the liability is subsequently full paid, issue a certificate of release.

    Note:

    ALS will not allow users to request a release after a revocation has been issued.

  4. Manually prepare the certificate of release.

  5. Secure e-mail the release to CLU for processing.

5.12.6.5.3  (11-30-2007)
Certificate of Withdrawal

  1. The Form 10916(c), Certificate of Withdrawal is issued when:

    1. an administrative error has occurred, i.e., a lien filed on a taxpayer during a bankruptcy proceeding.

    2. the taxpayer entered into an installment agreement and the agreement does not provide for the lien filing.

    3. withdrawal will facilitate collection of the tax liability, and

    4. withdrawal is in the best interest of the government and the taxpayer.

  2. See Delegation Order 5.4 to determine who has the authority to approve withdrawal of the NFTL.

  3. Employees requesting the issuance of a certificate of withdrawal will expect issuance within five days of forwarding the request to CLU.

  4. The certificate of withdrawal is normally signed by Collection Advisory or Insolvency managers, however, documents generated by ALS will have digitized signatures.

  5. Taxpayers and field personnel will request NFTL withdrawal through Advisory or Insolvency.

  6. Advisory and Insolvency managers may authorize certificate input by lower graded employees who have ALS experience or training. These managers are responsible for the accuracy of the information input. Functional managers should have sufficient internal controls to approve the input of the certificate prior to actual ALS input. An ICS or AIS history entry by the manager meets this requirement.

    Note:

    With managerial approval, the ALS " Bypass Approval" option is available to Advisory and Insolvency employees. This option places documents directly into the ALS print queue. CLU intervention is not required. Managers who nopt to use this feature must secure e-mail the names of selected advisors to CLU

  7. The CLU will print the withdrawal and send it to the recording office for recordation.

  8. The employee requesting the withdrawal will abate the original NFTL TC 360 posted to the taxpayer's account.

5.12.6.5.3.1  (11-30-2007)
Partial Withdrawal

  1. Neither the Internal Revenue Code nor the Treasury Department's Regulations have provisions for issuing a partial withdrawal. However, circumstances may exist that require a partial withdrawal.

  2. Functional employees (revenue officer, tax examiner, OIC specialist, etc.) are responsible for obtaining Advisory approval and preparing the partial withdrawal certificate and referral to CLU. The document must clearly identify (on the face of the document) which taxpayer remains responsible for the liability.

  3. Attach the approved partial withdrawal to the referral document and secure e-mail the scanned document, fax or mail to the CLU.

  4. The IRS will pay the filing fee.

  5. Do not abate the TC 360 from the liable taxpayer's account.

  6. CLU procedures are found in IRM 5.19.12.6.5.3.1.

5.12.6.6  (03-15-2005)
Authority to Sign and Generate ALS Documents

  1. CLU team managers are authorized to generate and print certificates generated by ALS for employees authorized under Delegation Order 5.4.

  2. CLU team managers or lead tax examiners are authorized to make lien release determinations and to issue certificates of release resulting from lien payoffs initiated by their employees.

5.12.6.7  (03-15-2005)
Posting Recording Fees to the Taxpayer's Account

  1. Recording fees (fees paid for recording lien documents) are systemically posted to the taxpayers' account. Transaction code (TC) 360 is used to identify the lien fee and is normally accompanied by a TC 582 input in the same or next posting cycle.

  2. Occasionally, these transaction codes may not post until after the account has been full paid, thus returning the account to a balance due status.

  3. Reverse the transaction codes (using TC 361 and TC 583), in these cases, even though the lien request may have been made prior to the account being full paid.

5.12.6.7.1  (11-30-2007)
Paying Recording Fees and Certifying Payment

  1. Managing documents generated by the ALS includes paying and certifying recording fees. The Centralized Lien Unit is encouraged to arrange with local officials for the periodic billing of recording fees, preferably, on a monthly basis. However, the IRS cannot dictate their method of payment.

  2. Recording offices should be encouraged to submit a cover billing invoice and assign an invoice number.

  3. If the vendor does not provide an invoice, the Campus may create a numbered invoice detailing the amount due, recording office, number of documents paid, and any identifying information provided by the recording office.

  4. Beckley Finance requests that within 14 days of receipt of the invoice or request for payment, the following actions occur:

    1. Date stamp the invoice when it is received.

    2. Verify the accuracy of the invoice or request for payment, i.e., correct number of documents listed, amount on statement matches our records, etc.).

    3. Approve the invoice for payment.

    4. Verify the accuracy of the assembled package.

  5. Forward the verified package with the invoice to the Finance Center in Beckley, WV for payment.

  6. Copies of both the vendor invoice and the associated billing support voucher will be retained for six (6) years, three (3) months.

    Note:

    This voucher may be used to meet IRM 5.12.6.5.1.5(4) requirements, if appropriately date stamped.

5.12.6.7.1.1  (11-30-2007)
Payments Made to Recording Officials

  1. Follow up on documents paid by purchase cards or convenience checks, when recorded documents are not returned.

  2. When recording data is not received from recording offices paid by purchase cards or convenience checks, immediately contact the recording official to determine why recording data was not returned for all documents.

  3. The IRS will identify the document with the missing information.

  4. If necessary, provide a fax of the document to the recorder if they do not have a copy and obtain the recording information.

  5. If recording information is not obtained, refer to the FORT or Communications and Liaison Division (CLD) for appropriate action.

    Note:

    Review lost lien procedures for additional information.

5.12.6.7.2  (12-01-2005)
Billing Methods

  1. Three methods of payment have been established for paying fees.

    1. Direct Billing - the direct billing estimate must be annotated on the statement (e.g., billing support voucher, vendor invoice, etc.). Bulk estimates have been established, no RTS entry is needed

    2. Convenience Checks - used to provide pre-payment when required by local officials. The request for payment should be processed one day after receipt.

    3. Payment Purchase Card - annotate the statement with the bulk estimate document number. Bulk estimates have been established, no RTS entry is needed.

  2. Annotate the appropriate finance identification number for method of payment. These numbers change each fiscal year and can be obtained from the SB/SE budget office. Refer to the SBSE web site, Financial Policies and Guidelines - FY-0X (X=fiscal year).

5.12.6.7.3  (11-30-2007)
Processing Duplicate Billing Invoices

  1. Recording offices will occasionally send a duplicate billing invoice because payment has not been received.

  2. When a duplicate billing invoice is received, CLU will review their records to verify receipt and payment of the original voucher.

  3. If it is determined that the original invoice was forwarded for payment, obtain the payment date and check number. This information will be provided to the recording office.

  4. If the payment was offset (used to pay another government debt owed by the county/state), that information will be provided to the recording official along with a contact number for Financial Management Services . Further, the recording official should be informed that no other payment for that billing invoice will be made.

  5. If it is determined that the invoice was altered because their records did not match the billing support voucher or documents were not recorded that were included on the invoice, an explanation of the discrepancy should be provided. Also, provide copies of the corrected invoice, billing support voucher and unrecorded documents, if requested.

  6. If it is determined that the invoice was not forwarded for payment, follow procedures outlined in IRM 5.12.6.7.1.

5.12.6.8  (10-01-2003)
Post Payments Using Designated Payment Code 07

  1. All payments must be posted to the taxpayer's account within 48 hours of receipt.

  2. Lien Units will forward payments for posting by close of business the day of receipt.

  3. A designated payment code (DPC) is mandatory on all collection initiated posting vouchers. TC 670 is used to post money received for a lien payoff.

  4. Use DPC 07 when applying payments secured for the release of a NFTL.

  5. When a check is received in response to a payoff letter:

    1. Verify if the money received is the correct amount and the due date for payment as stated on the payoff letter has not passed.

    2. Verify the payment type, cashier's check, bank/postal money order, bank check, personal check.

    3. Release liens pertinent to the payment only if the tax period is full paid and the funds are certified.

5.12.6.9  (11-30-2007)
Reports

  1. A number of reports are created by ALS that directly relate to protecting the government's interest, protecting taxpayer rights, and maintaining the Service's priority. These reports, except where identified, will be resolved by the Centralized Lien Processing Unit. Supplemental procedures may be developed by the lien unit. The reports are:

    1. Satisfied Module Reject Report - this report shows modules from the weekly download, which could not be systemically processed. The report lists all modules that rejected as the result of TIN, form/period mismatch. Rejects will generate entries to the report without marking periods as satisfied. The report must be resolved weekly. Follow up actions are required on all items. This report is cumulative and modules will remain on the report until resolved. Resolved reports will be retained and filed.

    2. ACS/ICS Reject Report - This report is systemically generated each time an ACS/ICS tape is loaded to ALS daily/weekly. Liens containing invalid form types and zip codes are systemically rejected. The ACS/ICS Reject Report produces a list of taxpayers and respective POA names and addresses, liens rejected due to invalid data and liens that are duplicates. For those items that require correct name and addresses, CLU will make the appropriate correction, if necessary, and reinput the rejected item.

    3. Missing POD Report - The Missing POD report is a list of employees (usually revenue officers) who do not have matching TSIGNs in the ALS database. This report is printed weekly and is worked immediately.

    4. Lost Lien Report - The Lost Lien Report is a list of liens where no court recording data exists on ALS . This report will be worked weekly. This report may highlight problems with certain recording offices in processing liens.

    5. Potential Refile Report - The Potential Refile Lien (PRL) Report lists all liens within the refile period where the collection statute has been extended or suspended. The refile period is a 1-year period ending 30 days after the collection statute expires. When the CSED date changes on MF, the revised CSED date field is passed on to ALS. The report highlights (*) lien periods that are within the last 90 days of the refile period. Timely refiling of liens ensures that the government's priority is maintained. This report will be provided to requesting managers when requested.

      Note:

      Until revisions are made to this report, the CLU will, upon request, print the responsible function a copy of the report. CLU IS RESPONSIBLE FOR NO OTHER ACTIONS until a request for refile is received.

    6. NMF 360 Report - The NMF 360 Report provides a list of NMF modules that require manual input of TC 360 for assessment of recording fees. This report should be worked weekly.

    7. GUF - Nullified Distribution Report - provides a list of TC 582 that did not post to master file. This report should be worked within 5 days so that the lien filed indicator can be set or reversed on master file.

      Note:

      TC 583's generally do not go unpostable. When multiple TC 583's are received master file programming voids all postings after the initial TC 583 request is received.

    8. 668Y Listing - provides a list of slids requiring research, listed on the billing support voucher but are not in the ALS print queue.

    9. 668Z Listing - provides a list of slids requiring recording information research before certificates of release can be generated.

  2. CLU report resolution procedures are found in IRM 5.19.12

5.12.6.9.1  (11-30-2007)
Resolving the Lost Lien Report

  1. This report lists liens without recording information.

  2. Work the report weekly. For review purposes use, Exhibit 5.12.6-10, Lost Lien Report Data.

  3. Technicians will input lien recordation data received prior to running the report.

  4. Use one of the following options to locate recording data:

    1. telephone call to the courthouse;

    2. mail-in request;

    3. Accurint;

    4. revenue officer field assistance, or,

    5. Netronline.

  5. Input recordation information, if obtained.

  6. If the lien was not received by the recording official, determine if the liability has been paid. If there is a balance due, a replacement NFTL will be prepared.

5.12.6.9.1.1  (11-30-2007)
Replacement Liens

  1. When recording information is not received and cannot be found through research by CLU, replacement liens may be generated and sent to recording offices. CLU will replace liens and send notifications to other functions in accordance with the following policies:

    Timeframe Lost Lien Type Policy
    10+ years None Do not replace lien
    3-10 years New, 668F, Lost Lien Replace if lien amount is $5,000 or greater (unless six or fewer months before CSED)
    0-3 years New, 668F, Lost Lien Replace regardless of amount (unless six or fewer months before CSED)
    Effective 12/06/2006 All Replace liens regardless of amount (unless six or fewer months before CSED)

  2. Lost Liens Worked by CLU

    1. CLU will use the table above and issue replacement liens on accounts in the following statuses:
      Automated Collection System - Status 22
      Field - Status 26
      Currently Not Collectible - Status 53
      Installment Agreement - Status 60
      Defaulted Installment Agreement - Status 64

  3. Do not suppress the CDP notice.

  4. For liens that originated in ACS or if accounts are currently in status 22, issue replacement liens using an ACS assignment number.

  5. For liens on accounts currently in status 60, 64, and 53, that originated in the collection field function and accounts currently in status 26 (filed by revenue officers) file replacement liens:

    1. Use the ROs (or other employee) name who originally requested the lien on the replacement lien or the current RO assignment if in status 26; unless the employee is not on ALS, then file the lien using the information provided below:
      Approving Official: D. B. Wheeler
      ALS TSIGN: 95006233
      Title: Manager
      Phone: (616) 235-1498

    2. AIQ will notify the ALS Functional Coordinator in the FORT if the name and phone number associated with TSIGN 95006233 changes.

    3. Refer calls and requests for other actions from taxpayers on these liens to the advisory office where the taxpayer is located, or where the lien is filed based on the nature of the request or contact D. B. Wheeler.

    4. TSIGN 95006233 is reserved for filing liens to replace lost liens.

    5. Do not use ALS TSIGN 95006233 for any assignment purpose on the IDRS or ICS.

5.12.6.9.1.2  (11-30-2007)
Identifying Liens That Require Notifications to Other Functions

  1. If it cannot be confirmed liens are recorded, and taxpayers are in a status that requires specific expertise to determine if replacement lien filing is allowed, CLU may send notifications to other functions. Notifications will be prepared when recording information cannot be found in the following types of accounts. Phone numbers and E-mail addresses are available from the IRS Directory.

  2. Litigation - identified these accounts by:

    1. Status code 72; and

    2. the closing code that accompanied the last transaction code (TC) 520 on the tax module is 73, 76, 77, 80 or 82.

    3. Contact:
      Title: Manager, AIQ
      Mail Address: IRS, 678 Front Street NW, Suite 200, Grand Rapids, MI 49504.

  3. Insolvency - identify these accounts by:

    1. Status 72 and the closing codes 60-67, 81, 83-89 with TC 520

    2. Contact.
      Title: Senior Program Analyst, Advisory, Insolvency and Quality (AIQ)
      Mail Address: IRS, 915 Second Avenue, Stop W241, Seattle, WA 98174.

  4. Identify Centralized Offer in Compromise (COIC) by: Status 71 (a-b below), and TC 480 (no TC 780, no TC 788; and no TC 781, present on the module. Identify Monitoring Offer in Compromise (MOIC) (c-d below) by Status 71, no TC 780.

    1. COIC - Memphis
      Contact:
      Title: Team Manager
      Mail Address: 5333 Getwell Rd, Stop 880, Memphis, TN 38118

    2. COIC - Brookhaven
      Contact:
      Title: Program Manager
      Mail Address: 1040 Waverly Avenue, Holtsville, NY 11742

    3. MOIC - Brookhaven
      Contact:
      Title: Department Manager, Brookhaven MOIC Unit
      Mail Address: IRS, P.O. Box 9006, Holtsville, NY 11742

    4. MOIC - Memphis
      Contact:
      Title: Department Manager, Memphis MOIC Unit
      Mail Address: IRS, 5333 Getwell Rd., Stop 813, Memphis, TN 38118

  5. Innocent Spouse - identify these accounts by MFT 31, TC 971, AC 104.
    Contact:
    Title: Senior Tax Analyst
    Mail Address: P. O. Box 120053, Covington, KY 41012

5.12.6.9.1.3  (11-30-2007)
Notifications About Lost Liens

  1. CLU will notify the appropriate function of actions on lost liens. CLU will:

    1. Use issue a Notification Regarding Lost Lien, to send lost lien information to the proper function for research;

    2. Use the lost lien chart in IRM 5.12.6.11.4.1(1) to identify the type of lost lien requiring research, include a description specific to the type of lost lien to assist the function in completing the requested research;

    3. Use the information in 5.12.6.11.4.2 to determine where the request should be sent;

    4. Provide information specific to the case that may assist the receiving function in conducting research and making a decision whether a replacement lien should be filed; and,

    5. Send notifications by secure E-mail.

  2. After sending the notification, CLU will remove the lien from the Lost Lien report.

5.12.6.9.1.4  (11-30-2007)
Receivers of Notifications - Procedures for Replacement Liens

  1. Notifications are sent to the functions offices because the taxpayer's current collection status (litigation, bankruptcy, offer in compromise, and innocent spouse) may preclude filing a replacement lien. Only the function contacted via the notification - the function that specializes in actions relative to the taxpayer's current collection status - can make the replacement lien decision.

  2. Offices that receive notifications will:

    1. determine if the notification was sent to the appropriate office based on the account status and contact information; and,

    2. assign the notification to an appropriate manager, advisor, specialist or other employee.

  3. Employees assigned notifications will:

    1. Review the tax modules and taxpayer case regarding account status, closing code information, if appropriate, other account information; and, taxpayer history, if available.

    2. Request replacement liens unless, legally precluded; precluded by policy; a replacement lien is not warranted based on specific case information, including if it will impede collection.

  4. To file replacement liens, ICS users will complete Form 12636 or on the Intranet go to:

    1. IRS Homepager;

    2. SERP;

    3. Who/Where;

    4. ALS Units - Contacts;

    5. Form 12636;

    6. Follow the guidance for filing the lien through the appropriate CLU team by secure E-mail; and,

    7. Do not suppress the CDP notice.

  5. If the lien request is input directly into ALS, the system may query if it is a duplicate lien filing. If this occurs:

    1. Set answer to yes;

    2. Proceed with input; and,

    3. Do not suppress the CDP notice.

  6. If a replacement lien will not be filed:

    1. Request input of TC 583, on the appropriate IDRS modules; and,

    2. Request reversal of the associated TC 360.

  7. As indicated, when CLU sends notifications, it removes liens from the Lost Lien Report.

    1. Do not respond to CLU regarding lien determinations made based on resolution of Lost Lien Notifications; however,

    2. If recipients of notifications have questions, determine the proper CLU contact on the IRS intranet by going to:
      •IRS Homepage
      •SERP
      •Who.Where
      •ALS Units - Contacts
      •Send all notifications via secure E-mail.

5.12.6.9.1.5  (11-30-2007)
Actions to Avoid Issuing Releases Without Recording Information

  1. Field personnel will issue liens in accordance with procedures in IRM 5.12.3 and IRM 5.12.6.5.1.

  2. Research ALS to find the original lien's recording information. Copy the recording data from the lien being released on to the release document, Form 668Z.

  3. Send CLU a copy of the release by secure E-mail or by fax.

  4. If ALS does not have recording information for the original lien, take the following actions to find the recording information.

    1. Access the web site for recorder's office (or Secretary of State) where the lien was filed;

    2. Research using Accurint;

    3. Phone or Field call the recorder's office where the lien was filed;

    4. Contact CLU for research of the billing support vouchers to determine if the lien had been sent to the recorder and if there is any outstanding recording information to be input. Determine the proper CLU contact and secure E-mail the information.

  5. If recording information cannot be found through research, contact Advisory to determine the best course of action.

5.12.6.9.2  (11-30-2007)
ALS 668Y Listing

  1. The 668Y listing provides a list of slids identified on the billing support voucher but are missing from the ALS print queue.

  2. The list is printed and researched by CLU every Monday and Wednesday.

  3. The reason the slid appeared on the listing is resolved prior to printing which is scheduled for Tuesdays and Thursday.

  4. Listings are resolved within two business days.

5.12.6.9.3  (11-30-2007)
ALS 668Z Listing

  1. The 668Z listing provides a list of slids for liens that have been full paid but do not have data in the ALS recording data screen.

  2. The list is printed and researched by CLU every Monday and Wednesday.

  3. The reason the slid appeared on the listing is resolved prior to printing which is scheduled for Tuesday and Thursday.

  4. Listings are resolved within two business days.

5.12.6.10  (11-30-2007)
Disaster Procedures for Natural Disasters

  1. Collection Policy will simultaneously notify the CLU Operations Manager as well as Compliance Services Operations when disaster procedures are implemented prior to a nationwide notification and will provide zip codes based on information obtained from master file and the Headquarters disaster recovery analyst.

  2. The printing of the NFTL triggers the issuance of CDP notices. When the impact of the disaster may affect postal services, Policy may elect to stop the issuance of lien documents until a postal delivery determination is made. These procedures will be implemented as needed.

  3. Functional Coordinators will input the appropriate state or zip codes into ALS to ensure that liens are not created.

  4. Policy will simultaneously notify CLU and Operations when to resume NFTL generation. This decision will be based on the disaster provisions used nationwide.

5.12.6.10.1  (11-30-2007)
ALS Disaster Procedures

  1. The following procedures will be followed if there is an ALS disaster (the database is not available) lasting three days or more, and recording offices are not impacted. Lien documents will not be recorded in electronic filing courts without contingency plans, i.e., Manhattan, NY, US District Court, Boston, MA, Minnesota, LA County, CA, and the Connecticut Secretary of State.

  2. Lien documents will be prepared for jeopardy/termination or hardship situations.

  3. Revenue officers and advisors will:

    1. use ICS marco forms to prepare lien documents.

    2. create a SLID using the area/group/territory/employee TSIGN, then sequential numbering, i.e., 211003231222-01,

    3. record documents locally, when appropriate.

    4. attach prepared documents to Form 3210 for lien documents requiring recordation in other areas and secure e-mail a request to record the document after determining the appropriate group. The receiving group will record the lien document and return recording information to the requesting employee within 5 business days.

    5. post transaction codes TC 582 to set lien filed indicator and TC 360 with the appropriate recording fee.

    6. document case histories, including the date forwarded to CLU and the serial number from (3)(b).

    7. secure e-mail CLU copies of recorded documents.

  4. Employees without ICS access will use the Intranet fillable forms to prepare lien documents. Requests will be secure emailed to CLU. The procedures outlined in (3)(a) through (3)(f) will be followed.

  5. When a NFTL is issued, the appropriate collection due process notice with enclosures will be prepared and mailed by requesting employees. Certified or registered mail will be used when appropriate. Issue one of the following notices.

    1. L3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320,

    2. L3171, Notice of Federal Tax Lien Filing,

    3. L3177, Notice of Federal Tax Lien Filing - Nominee or Alter-Ego,

    4. L3527, Notice of Federal Tax Lien Filing - Child Support Obligations,

    5. L3886, Notice to Taxpayer Nominee/Alter-Ego of Federal Tax Lien Filing.

  6. Employees will document case histories with lien filing or release request information. Include sufficient information to identify the request.

  7. When ALS production resumes, CLU will input these documents to the database using SCreate from documents provided by the requesting employee.

5.12.6.11  (12-01-2005)
Field Office Resource Team (FORT)

  1. The Field Office Resource Team (FORT) acts as a technical resource and liaison for the Lien Processing Units. A staff revenue officer/advisor responds to employee requests or determines if assistance from some other function is required.

  2. Generally the FORT:

    1. Obtains information on lien issues from field employees, as necessary.

    2. Communicates with Headquarters Analysts

    3. Resolves issues with recording offices, if possible.

    4. Initiates Contact with area counsel and governmental liaison offices.

    5. Responds to questions regarding new procedures.

    6. Assists in implementing new or revised procedures.

    7. Explains and interprets IRM procedures, when necessary

    8. Provides technical guidance to internal and external customers.

  3. Establishes contacts with Area Counsel and the Governmental Liaison staff.

    1. Creates a list of contact names and telephone numbers, nationwide.

    2. Initiates contact on an as needed basis.

  4. Encourages Lien Processing employees to contact field employees to resolve non-technical issues.

  5. Responds to questions from field employees related to centralized lien processing.

5.12.6.12  (11-30-2007)
Contacting Recording Officials

  1. Upon receipt of a complaint, CLU may contact recording officials, to ascertain the issue to be resolved, without contacting Technical and Insolvency.

  2. Decide on a list of actions to be taken to resolve the issue.

  3. Contact area counsel and/or the local governmental liaison staff to determine if policies or practices have been established.

  4. Contact the recording official and outline our procedures and any code or regulation requirements.

  5. Within 10 calendar days, contact the Headquarters Policy analyst(s) and provide information regarding attempted resolution if the issue is not resolved.

  6. Collection Policy with SBSE Counsel, if necessary, will determine further appropriate corrective actions.

5.12.6.12.1  (03-15-2005)
Resolving Issues with Recording Officials

  1. Contact the recording official.

  2. Explain the Service's position and attempt to resolve the issue.

  3. Document any conversations and also retain any correspondence received from the official.

  4. Initiate corrective actions if you determine that established policies or procedures have not been followed.

  5. If it is determined that procedural changes are required, initiate a systems change request and submit to Headquarters for approval.

  6. Request interim guidance, if necessary.

5.12.6.13  (03-15-2005)
Communicating With the Centralized Lien Unit

  1. Requests for assistance will be forwarded to FORT by the Lien Processing Manager.

  2. Identify concerns and take any necessary corrective actions.

  3. Identify issues/concerns that should be resolved by the Lien Unit return them through the FORT manager. The Lien Unit can resolve issues regarding:

    1. missing TIN,

    2. incorrect name control,

    3. incorrect tax period,

    4. incorrect type of tax . etc.

  4. Determine if other functions are involved and if so, initiate contact.

  5. Provide the Lien Unit manager with information to resolve concerns.

  6. Referrals related to possible additional collection activity should be resolved in a timely manner.

  7. Determine what actions should be taken when:

    1. a TE is completing a payoff request and determines that there is a pending property transaction and NFTLS have not been filed on all periods.

    2. a taxpayer requests a release and can show that the liability is satisfied but the controlling function has no record of payment,

    3. disclosure of taxpayer information may be inappropriate.

Exhibit 5.12.6-1  (11-30-2007)
ALS Permissions Chart
Automated Lien System (ALS) access options have been established for the following employees, including affiliated tax examiners, clerks and group secretaries. Permissions must be approved by managers and may be altered to meet specific employee needs.

Permission RO TAS and Appeals MOIC (Monitoring Offers in Compromise) COIC (Centralized Offer in Compromise) Collection Advisory and Field Insolvency CIO (Centralized Insolvency Office)
Create a Lien       x x x
Research Lien Information x x x x x x
Request Lien Release     x x x x
Withdrawal         x  
Revocations         x  
Partial Release         x x
Refile a Lien x       x x
Input Court Data x       x  
Update a Lien (History)       x x x
Input POA Information (NOTADD) x     x x  
Print Facsimiles       x x x
Amend x       x  
Approve     x x
managers only 		x  
Edit a Lien       x    
Bypass         *x
managers approval required 		*x
managers only

Exhibit 5.12.6-2  (03-15-2005)
Request for Filing and Refiling Notice of Federal Tax Lien

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Exhibit 5.12.6-3  (03-15-2005)
Notice of Lien (MCAR)

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