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Part 5. Collecting Process

Chapter 19. Liability Collection

Section 1. Balance Due (Cont. 5)

5.19.1  Balance Due (Cont. 5)

5.19.1.11 
Installment Agreement Accounts List (IAAL)

5.19.1.11.6 
IAAL "Review Agreements

5.19.1.11.6.2  (04-28-2008)
IAAL Review for Refund to Full Pay Account – CSCO Processing

  1. Accounts appear on the IAAL for review when a refund is expected to full pay the account and not appeared on the account. Research IDRS and Master File to determine if the return was filed:

    If... And... Then...

    • Return was filed
      OR

    • Did not post and you cannot determine if it was filed

    		 Did not full pay the account

    1. Update the Installment Agreement showing the original payment amount as the payment amount on CC IADIS

    2. Allow reminder notices to issue

5.19.1.11.6.3  (04-28-2008)
IAAL Review of Restricted Interest and Penalty Accounts – CSCO Processing

  1. Compute and assess restricted interest and/or penalty accounts with ALN "XX27" ; for procedures to compute restricted interest and/or penalty: See IRM 5.19.1.11.2.1.(1),

    "If/Then" table, third box in the "Then" column

  2. Turn the assessment indicator on with CC IAGRE.

5.19.1.11.7  (04-28-2008)
Litigation Module on the IAAL – CSCO Processing

  1. Accounts displaying on the IAAL in Litigation must be reviewed on IDRS. Accounts are on the IAAL due to a pending TC520, usually with a Bankruptcy Closing Code. If due to a TC520 with a Litigation Closing Code, no action is necessary.

  2. Bankruptcy modules are identified with TC520 closing codes 81, 83, 60 through 67, or 85 through 89. Only closing codes 81, 60, 62, 64 and 66 allow post-petition tax years to remain in Status 60 or progress to collection status if IA is default.

  3. For any module already in Status 72, or in Status 60 with a pending TC520 and a bankruptcy closing code, take no action.

  4. For any module in Status 61, with no pending or posted TC520 with a bankruptcy closing code, default the agreement using IADFL, with default category "other" and input STAUP 2200.

  5. Bankruptcy only suspends the Installment Agreement for the duration of the bankruptcy. At the conclusion of the bankruptcy Insolvency takes the following actions:

    1. Input TC 521s to reverse all open TC 520s

    2. Request reinstatement of the Installment Agreement and waive the user fee generally with Form 4844, Request for Terminal Action, with copies of the prior agreement IADIS prints as attachments

5.19.1.11.8  (04-28-2008)
IAAL TC 914 on Agreement – CSCO Processing

  1. If a TC 914 appears on the IAAL, forward the account to the campus Revenue Officer for contact with Criminal Investigation to determine if:

    • The Installment Agreement should continue

    • Status 91 should be input

    Note:

    If your campus does not have an in-house Revenue Officer, forward to the Criminal Investigation function.

5.19.1.11.9  (04-28-2008)
IAAL Account Transferred – CSCO Processing

  1. Take no action on accounts transferred:

    • In accordance with current procedures: See IRM 5.19.1.3.1.
      or

    • When the case defaulted and the account was transferred

  2. Accounts appearing on the IAAL under the following titles are accounts where the Collection Location Code (CLC) is being changed with a Doc Code 50:

    • "PAYROLLDIA TRANSFER"

    • "WAGE LEVY TRANSFER"

    • "CNC TRANSFER"

  3. Review the history on CC IADIS for the following:

    " xferxx xx"

    Note:

    The first "xx" indicates the site the account came from; the second "xx" indicates the gaining site.

    Example:

    "XFER29 49 "

  4. Locate the paper file related to these types of agreements and mail them via Form 3210, Document Transmittal, to the gaining site. Indicate on Form 3210, "Account Transferred" Re-input the IA at your site.

    Note:

    Once paper files are eliminated Wage Levy due to inputting the name, address and phone number of the employer on IAGRE, this category eliminated.

5.19.1.11.10  (04-28-2008)
IAAL Lien Determination – CSCO Processing

  1. A lien determination is required to reinstate cases with a balance due above established criteria if the agreement does not meet streamlined criteria :

    See LEM 5.19.1.12.10 for lien filing criteria

  2. Reject the account to the originator.

  3. If the ALN is "XX66" , File Lien in Event of Default, prepare Form 12636, Request for Terminal Action, and submit to the appropriate site per the Automated Lien System (ALS) Unit Listing on SERP, "Who/Where" . Fax Form 12636 according to the state in which the taxpayer resides per the listing. The originator already determined a lien must be filed if the Installment Agreement defaults and the taxpayer was informed of this action.

5.19.1.11.11  (04-28-2008)
IAAL DDIA in New Center

  1. The "DDIA IN NEWCTR" requires the DDIA be reinput at the new campus. Pull the DDIA file and forward to the new campus using Form 3210, Document Transmittal. Indicate on Form 3210, "Attn: DDIA Liaison" , and, "Account Transferred, DDIA needs to be re-input at your site" . For the mailing address of DDIA liaisons, see SERP, "Who/Where" information.

5.19.1.11.12  (04-28-2008)
IAAL Categories: "ORIGINATION FEE TRACKING" , "REINSTATEMENT FEE TRACKING" , and "DISHONORED CHECKS " (formerly "USER FEE ERROR LISTING " )

  1. The User Fee is deducted from the payment in CP 521, Installment Agreement Reminder Notice, processing and applied to the User Fee module:

    • MFT 13: BMF

    • MFT 55: IMF

    Note:

    For definition: See IRM 5.19.1.5.4.3.1. , User Fee Module

  2. IDRS generates a listing on the IAAL under two categories for all payments, regardless of status, where there is:

    • No Agreement

    • User Fee Code inconsistent

    • Duplicate Original Fee

    • Duplicate Revision Fee

    • Dishonored Checks

  3. The "ORIGINATION FEE TRACKING" heading category includes only:

    • Origination paid discrepancies

    • Duplicate payment(s)

    • Dishonored checks

  4. When the billing record shows the origination fee was paid, and a TC 694/DPC 50 or 49 posts in the current cycle, the account is listed under the origination tracking category.

  5. The "REINSTATEMENT FEE TRACKING" heading category only includes:

    • Reinstatement paid discrepancies

    • Duplicate payment(s)

    • Dishonored checks

  6. When the billing record shows the reinstatement fee was paid and a TC 694/DPC 51 posts in the current cycle, the account is listed under the reinstatement tracking category.

  7. CSCO must determine what the billing record should reflect and if any other action is needed.

    Note:

    The billing record is defined as: IDRS — IADIS user fee codes 0-9.

  8. This listing generates due to the MFT 13/55 reflecting a duplicate or possible "mismatch" of the TC 694.

  9. If a user fee is collected and the account is not in Status 60, check for an indication it is assigned to Private Debt Collection (PDC); this can be determined by:

    • The presence of a "PDC-ID" indicator on CC ENMOD

    • An unreversed TC971 AC54 on any module

  10. If the case is assigned to PDC, take no action to abate the user fee.

  11. Both origination and reinstatement fee tracking categories include dishonored checks. When a check is dishonored, identify the accounts by a reversed TC 694 with a TC 695 Doc Code 87. Accounting Operations also inputs TC 361; when these appear on the IAAL listing, the fee is set as "NOT Paid" . CSCO must review and/or reverse the correct code.

  12. In both categories, including Dishonored Check information, research the account to determine if the user fee is a:

    • "true" duplicate

    • Discrepancy

    • Dishonored check

  13. Based on this determination, take the appropriate action and update the fee

    Example:

    Transfer, abate, etc.

  14. In most instances, MFT 13/55 does not display on IDRS; research these accounts using CC CFOL.

    Caution:

    When researching the account, a duplicate fee paid may actually be due and collected because of the account leaving status 6X and another Installment Agreement or reinstatement was established or initiated, creating a new Original or Reinstatement fee billing. For true duplicate fees collected see paragraph (15) below.

    Example:

    The taxpayer initiated an agreement creating an original user fee due, paid the fee of $105.00, and later defaulted, subsequently initiating a new agreement fee. In this scenario, both fees are due, but may reflect on the listing as a duplicate fee because of the duplicate TC 694; this example requires no transfer/abatement of the fee.

  15. Discrepancies may result in the TC 694 with the incorrect DPC code of 49-51. The mismatches often occur because the IA was IAREV, or revised, in some way after the bill for the user fee went out and the time this fee payment comes in. Research IDRS or Master File to determine if the incorrect DPC code 49-51 should be revised on IDRS or the User Fee

    Example:

    A $105.00 origination fee was due; however, the incorrect DPC user fee reflects only a $45.00 fee collected; this example requires a correction of the additional $60.00 applied towards the user fee, transfer, per paragraph (17) below.

    Example:

    The taxpayer only actually owes a reinstatement user fee of $45.00 and the incorrect fee of $105.00 was collected; therefore, creating a $60.00 overpayment. This example requires a correction of the overpaid portion of the fee, transfer per paragraph (17) below.

  16. To update the user fee:

    1. Initiate CC IAREV

    2. The CC IAGRE displays CC IAREV if there is an Installment Agreement (Status 60)

    3. To update the screen, input "0" in the " Review Account" field

    4. Proceed to the "User Fee CD" field and update with the appropriate user fee code

    Reminder:

    Only update the user fee code on Status 60 accounts; for other status accounts, take no action on updating the user fee code. These accounts are updated if the agreement is re-input or reinstated with the appropriate user fee due.

  17. To transfer or abate a user fee payment: See IRM 5.19.1.5.4.3.3.

    User Fee Payment Transfer/User Fee Abatement

    Reminder:

    When transferring or abating the fee, ensure to update the fee on Status 60 accounts per paragraphs (12) through (14) above.

  18. If more than one duplicate user fee is deducted, it may be an indicator the taxpayer is submitting a copy of the original CP 521, Installment Agreement Reminder Notice, with subsequent installment payments:

    1. Contact the taxpayer with instructions to avoid this condition occurring in the future

    2. If unable to reach the taxpayer by phone, send Letter 3127C, Revision to Installment Agreement, to explain the circumstances

    3. Create a history item on ENMOD and add the reason the duplicate fee is appropriate to DI.

      Example:

      "dup-uf-ltr"

  19. For all other information regarding user fees, refer to the following IRM references for a complete overview, identification, establishment, module identification, and fee payment/abatement:

    • See IRM 5.19.1.5.4.3., Installment Agreement User Fees

    • See IRM 5.19.1.5.4.3.1., User Fee- MFT 13 (BMF) and MFT 55 (IMF)

    • See IRM 5.19.1.5.4.3.2., Manual Establishment of a User Fee Module

    • See IRM 5.19.1.5.4.3.3., User Fee Payment/User Fee Abatement

5.19.1.11.13  (04-28-2008)
Collection Branch Follow-Up Review of Notice of Default (CP523/623)

  1. This review encompasses receiving a listing from Notice Review function of CP 523 (English) and CP 623 (Spanish), Installment Agreement Default Notice, and review for the following items:

    • Pending payments

    • Pending adjustments

    • Restricted interest and penalty

    • Correct name and address

    • Correct balance due

    • Correct reason for default

    • Additional copies of the notice for ex-spouse and/or authorized representative (CAF)

  2. Return the annotated list to the Notice Review function, instructing they destroy the CP 523 and CP 623 Notices, if the agreement is reinstated.

  3. Input a history item on TXMOD(s) if the notice is not mailed.

    Example:

    "CP523void"

5.19.1.11.14  (04-28-2008)
MFT 31 Category on the IAAL

  1. Installment Agreements are not transferred to MFT 31 modules when accounts are mirrored. The TINs generate on the IAAL for necessary action.

  2. Four weeks after appearing on the IAAL, review the accounts and determine the status of the IA prior to the mirroring. If the account was mirrored due to Innocent Spouse activity, follow the chart below:

    If... Then...
    The IA on the joint account defaulted and CP 523 , IMF Installment Agreement Default Notice, was issued Take no action
    The IA on the joint account would default; however, the mirroring of the account prevented the default

    Example:

    MFT 30 200212 .00 status 12 MFT 30 200312 2,000.00 status 21
    The MFT 30 200212 module was mirrored (MFT 31), but a new liability posted (MFT 30 200312).

    		Reestablish the IA on the joint account, the balance due modules should now be MFT 31, and immediately default the agreement; this causes the CP 523, IMF Installment Agreement Default Notice, to generate

    Note:

    If the joint account has an L- freeze, send Form 4442, Inquiry Referral, to Centralized Case Processing, and request they issue a default Letter 2975 to the taxpayer.

    • The IA was only for modules now mirrored

    • There is a balance due, now on MFT 31

    • No activity occurred resulting in the IA defaulting

    		 Reestablish the IA on the account without an L- freeze (non-petitioning spouse)
    The IA is still active (Status 61) on non-mirrored module(s) in the joint account only

    Example:

    MFT 30 200212 .00 status 12 MFT 30 200312 2,000.00 status 61 MFT 31 200212 1,200.00 status 21

    1. Add the MFT 31 module to the existing IA

    2. Suppress the restructuring user fee and allow the skip

  3. In all cases where the IA is re-established, use the same terms present on the MFT 30 modules. Do not change the user fee code current on IAREV; if the current user fee code is:

    • "0" , it should remain as "0"

    • "5" , it should remain as "5"

  4. In this scenario, allow the skip.

5.19.1.12  (04-28-2008)
Specialty Procedures for Large Dollar (LG$) Cases - SBSE IMF Only and W&I

  1. Only W&I ACS Buffalo Call Site and SB/SE Brookhaven Call Site employees, GS-6 and above, are authorized to work LG$ cases; for dollar criteria: See LEM 5.19.1.12(1)

  2. All LG$ cases flow into ACS inventory with cases systemically assigned to specialty Teams "N" (W&I) and "O " (SBSE IMF).

5.19.1.12.1  (04-28-2008)
Inventory Processing

  1. Specialty teams are expected to work this inventory daily, performing all appropriate actions on a case when initially reviewed:

    1. Cases over $1 Million received in the LG$ sites are transferred to the appropriate Collection Field Function (CFf) group immediately; no actions to be taken

    2. Make a lien filing determination during the initial review of each LG$ case

    3. Conduct all required research, based on the issues of the case during the initial review on each case, including IDRS research and fully document actions and research results on DI comments

      Note:

      Required research is based on the specific issues of each case, such as IPRTR, RTVUE, and AMDIS, although not all-inclusive.

    4. Conduct Asset and Locator Services (A/LS) research to locate assets and/or alternate addresses and/or phone numbers even if case closure is not imminent; all LG$ cases require this research prior to final case disposition

      Example:

      Asset/Locator Service research is based on the specific issues of each case, such as Installment Agreement (IA), Transfer to a Revenue Officer (TFRO), Currently Not Collectible (CNC), etc.

      Note:

      When correspondence is received, all research must be completed during initial analysis of the correspondence and prior to the taxpayer or Power of Attorney (POA) being contacted.

    5. If a telephone number is present, an out call attempt to the taxpayer or POA is required.

    6. If contact is made, see Taxpayer Contact and Financial Analysis information below; otherwise, take the next appropriate action including lien determination, Letter LT11 or levy issuance, even if taxpayer contact is attempted, but unsuccessful

      Example:

      Left message.

    7. If no telephone number is present, but a levy source is present, verify Letter LT11, Final Notice, was issued and the time frame for re-issuance has not expired; then, levy.

    8. If Letter LT11 was not sent, take the next the appropriate action.

    9. If no phone number and/or levy source is present, complete locator services research, document results in DI comments and take the next appropriate action.

      Example:

      Online resources and/or Asset and Locator Services (A/LS) research products.

    10. Summonses for non-published numbers are not required; pursue enforcement action as appropriate and conduct further locator services research to locate and contact the taxpayer.

    11. These are high-profile cases and documentation is critical ; comments must be clear and concise.

    12. Once all case actions are complete, enter follow up actions and move the case to the proper function/unit.

    13. Ensure the last comment clearly includes the next action

5.19.1.12.1.1  (04-28-2008)
Case Processing Time Frames

  1. Take the following actions on all large dollar cases:

    1. Follow-up dates must be in accordance with IRM established procedures

      Example:

      For a call back from the taxpayer, the follow up date must be four days beyond the deadline.

    2. If the taxpayer promises to mail documents, provide twelve days beyond the established deadline

    3. If an account is accessed, expedite all appropriate follow-up actions as needed

    4. If you access an account and the follow up date has not expired take all next appropriate action, do not wait for the expiration date; this includes levy follow ups

      Note:

      Follow-up must be made via telephone before issuance of ACS Letter LP59, Please Contact Us About the Taxpayer Levy; this is limited to two telephone attempts only.

    5. Follow up actions must not exceed ten days past the scheduled follow up date

      Example:

      If the follow-up date expires on June 1st, the follow-up must be done prior to June 11th.

    6. If a scheduled follow up date expires, correspondence or a telephone call is received review the case at each event and take all appropriate actions to ensure case is processed in timely manner including taking multiple actions when appropriate

      Example:

      On accounts with multiple levy sources.

    7. Check IRP and contact sources prior to issuing a levy to determine if the taxpayer is employed or has an open account

      Note:

      Although you can issue multiple levies, ensure, for joint accounts, you issue only one Levy on Wages at a time; during levy follow-up, levies can be issued to other wage sources including the spouse if levy proceeds will not full pay an account within four months. The initial levy issuance should be to only one wage source; there could be more than one wage source available and you must determine the best source for initial issuance.

      Example:

      If we get proceeds from one wage source and the taxpayer does not attempt to contact us or through contact does not agree to the terms we established, the levy is maintained. Ensure all related guidelines are followed; for additional information:
      See IRM 5.19.4.3

  2. Check DI, ACSWeb, IDRS including CC ENMOD, for indications of correspondence received: Batch numbers "Axxxxxx" are used for correspondence received from taxpayers or authorized representatives directly in the Buffalo or Brookhaven LG$ Call Sites. Batch numbers "SCxxxxxx" indicate correspondence received from ACS Support sites:

    1. Batch numbers "SCxxxxx" are considered Priority Correspondence; a separate log is maintained

    2. Generate interim responses in accordance with Action 61 guidelines
      For additional interim response information IRM 5.19.6.14.1
      For additional Action 61 guidelines IRM 21.3.3.4

    3. Large Dollar employees document which batch they have with their:
      Name
      Date of assignment
      Closure date

  3. If receiving taxpayer communication via correspondence or in-coming call, and the taxpayer or the POA claims the levy issued is creating undue hardship, take all necessary steps, including financial analysis and verification, ensuring it is a true hardship. ALL levy releases on LG$ cases require managerial approval.

5.19.1.12.1.2  (04-28-2008)
Taxpayer Contact, Financial Analysis, and Verification and Equity Analysis

  1. When speaking to the taxpayer, and they do not qualify for a Full Pay Agreement within 60 days, Guaranteed, or Streamlined Installment Agreement, attempt to secure as much expense and income information as possible for the financial analysis while on the phone; input all financial information on the DI financial screen. Most taxpayers should be able to provide income and expense information during the initial contact and have the substantiation documentation on hand to fax while on the phone; if they are unable to provide any of the financial information while on the phone, they may either

    1. Call back with the information and fax, if less than ten pages

    2. Complete a paper Form 433-F, Collection Information Statement

    3. Complete a paper Form 433-A/ Form 433-B, Collection Information Statement for Wage Earners and Self-Employed individuals

      Note:

      If the taxpayer or POA cannot fax or is over ten pages provide the taxpayer with the direct mailing address to LG$ Call Site to expedite the receipt of their correspondence.

  2. Advise the taxpayer of the substantiation requirements; for additional information: See IRM 5.19.1.6.Provide the taxpayer with an appropriate deadline for returning the required documentation. When determining the number of follow-up days for the action history item, allow twelve days beyond the established deadline for mailing time.

  3. Advise taxpayers all documentation/correspondence is mailed as appropriaateto the addresses below:
    Regular Mail - W&I ACS Large Dollar
    Internal Revenue Service
    PO Box 238
    Buffalo, NY 14225
    Regular Mail - SB/SE ACS Large Dollar
    Internal Revenue Service
    PO Box 750
    Holtsville, NY 11742

  4. If the taxpayer and/or POA prefer to overnight mail documents/correspondence requests, the address is:
    Overnight Mail - W&I ACS Large Dollar
    Internal Revenue Service
    Appletree Business Park Center, Suite 12A
    2875 Union Rd
    Buffalo, NY 14227
    Overnight Mail - SB/SE ACS Large Dollar
    1040 Waverly Ave, Stop 662
    Holtsville,NY 11742

    Note:

    Limit granting additional time to submit requested supporting information to two extensions; this should not exceed an additional seven days. Additional time beyond the "more than 7 days" time frame requires managerial approval.

  5. Complete heightened verification on financial analysis as follows:

    1. Compare information, such as taxpayer income, expenses, etc., to information on CC RTVUE, IRPTR etc.; for additional information: LEM 5.19.1.6

    2. Full credit reports are required prior to closing an account as unable to pay (Hardship), granting Installment Agreements, and prior to accepting an Offer in Compromise when the current balance due, including potential liability from unfiled returns, exceeds established dollar criteria; for additional information: LEM 5.19.1.12.(1).

      Note:

      There may be instances when the balance due on an account in Teams " N" or "O" is below the dollar amount for the above referenced LEM criteria; a full credit report may be considered to assist in locating taxpayer assets or as an aid in the verification of financial information prior to granting an Installment Agreement or closing as Unable to Pay.

    3. Secure pay stubs from all wage sources, see LEM criteria for when substantiation of income is necessary

    4. Validate any unreasonable expenses

    5. Verify and correct Form W-4

    6. Consider a withholding compliance referral; for additional information see IRM 5.19.11.3.4.2

    7. Secure banking records as applicable: See IRM 5.19.1.6.

    8. When required and received compare banking records data to income and expense information provided by the taxpayer

    9. If the taxpayer states they have no bank account, advise they submit the past two months of money order receipts or some other verification of income and expenses

    10. Document the case history and resolve all discrepancies

    11. If the taxpayer has self-employment income, secure proof of gross income for at least the prior three months

      Example:

      Invoices, bank statements, accounts receivable, commission statements, etc.

    12. Depending on the type of business, including seasonal and time-of-year, you may determine other months' data are necessary to determine accurate income

    13. Verify compliance with estimated tax payments and/or FTD payments

    14. Check CC IADIS to determine if the taxpayer previously defaulted on an Installment Agreement

    15. Strongly suggest use of a PDIA or DDIA

    16. Advise taxpayers who cannot immediately enter into an IA, due to unfiled returns or required to submit financial substantiation to begin sending payments prior to establishing a formal agreement

    17. If an IA is rejected, for IA rejection procedures: See IRM 5.19.1.5.4.10.

    18. If the taxpayer cannot full pay within the CSED, and does not meet CNC hardship criteria, followr Partial Pay Installment Agreement (PPIA) procedures: See IRM 5.19.1.5.5.

  6. If real property equity is determined: See IRM 5.19.1.12.1.6.1.

  7. Transfer the account to a Field RO using the following assignment numbers:

    • 6541: LG$ Asset Case, no paper file; Sub Code "604" is input by the field

    • 6546: LG$ Asset Case, paper File being forwarded; Sub Code "604" is input by the field

  8. Take the following additional actions when referring to the field:

    1. Update history items on DI

    2. Submit all related case documents including Asset and Locator Services (ALS) research, credit report, etc. to the appropriate Territory Office, to the attention of the gaining Group Manager; for additional information, refer to the RO TSIGN/ZIP/STATE listing on SERP

5.19.1.12.1.3  (04-28-2008)
Lien Determinations

  1. A Notice of Federal Tax Lien (NFTL) filing determination will be made during initial contact:

    1. If determined a NFTL has already been filed on all modules, document such in comments

    2. If speaking to the taxpayer, advise them a NFTL will be filed

    3. If determined a NFTL will not filed, document the reason for not filing in DI comments and secure required managerial approval

    4. For each NFTL determination completed, document the case and input the action literal "LIENDT"

    5. If the NFTL is input through FM10, no other documentation is required; for NFTL filing procedures see IRM 5.19.4.6.2

    6. All modules must have a NFTL filed prior to closing the account; for additional information, see LEM 5.19.1.12.1.3

    Examples when a lien should be filed: Examples when a lien should not be filed

    • An IA is being established

    • The taxpayer has broken promises

    • A CNC hardship determination is made

    • The case is being closed with anything other than:
      Full payment
      Full abatement
      Litigation

      Example:

      Bankruptcy or Appeals

    • There is substantiated doubt of liability

    • The taxpayer provided verification of a loan in process

      Note:

      For both loans and pending adjustments, provide a clear deadline by which the taxpayer must respond with proof the account will be paid in full; explain a Lien will be filed after the date if we receive no response.

    • It is verified the taxpayer is in bankruptcy or other litigation

    • Full Pay request of 60 days or less has been agreed to

    Note:

    On all contacts where a taxpayer made a commitment, lien filing must be part of the enforcement warning. All modules must have a lien filed prior to closing the account other than a 60 day or less Full Pay agreement.; for additional information on Federal Tax Liens see IRM 5.19.4.5

5.19.1.12.1.4  (04-28-2008)
Full Compliance

  1. Taxpayers must be in full compliance; for additional information: See IRM 5.19.1.3.4.1.(4)

  2. For SBSE IMF only and W&I LG$ accounts, see LEM 5.19.1.12

  3. Request the taxpayer file all required returns; do not issue a levy release on a promise to file

  4. For large dollar Combo Cases with unresolved return delinquencies (TDI’s), use enforcement actions as necessary until full compliance is adhered to

    Example:

    Enforcement action can include SFR Examination referral.

  5. Set specific deadlines and consequences for non-compliance.

  6. After all other case actions are exhausted, and the taxpayer is Unable to Locate or Unable to Contact, follow CNC UTL or UTC procedures: See IRM 5.19.1.7.1.17.

  7. If the taxpayer does not file by the promised date, issue a levy if one has not been issued

  8. If the taxpayer promises to file missing returns, request the taxpayer file an original return directly through the appropriate ACS support site or CRU/ASFR reconsideration campus. If the taxpayer is required to submit substantiation, all documentation should be submitted the appropriate LG$ Site.

5.19.1.12.1.5  (04-28-2008)
Broken Promises — Enforcement Action

  1. If the taxpayer does not comply with all established deadlines, issue levies as appropriate; for additional information see IRM 5.19.4.3

    1. Issue multiple levies simultaneously if more than one levy source is available

      Example:

      Wage and a Bank, if initial levy issuance do not issue two wage levies.

    2. Generally, for joint filers, issue one wage levy at a time; usually issue one wage levy and one bank levy simultaneously

    3. You can issue other combinations of levies when available and appropriate

      Example:

      Two sources identified as non-employee compensation, etc.

      Note:

      Managerial approval is not required when issuing a levy to the same source on the same assessment; for additional information see IRM 1.2.44.3, Delegation of Authorities for the Collection Process - DO 5-3

    4. Levy follow-ups must be expedited via phone contact, two attempts, before issuance of ACS Letter LP59, Please Contact Us about the Taxpayer Levy

    5. If the taxpayer does not comply with all deadlines, file a NFTL immediately, if not previously filed

    6. If

      The levy action(s) were unproductive and
      There is a good address, but are unable to contact the taxpayer and
      Assets with equity are found: See IRM 5.19.1.12.1.6.1.

    7. Transfer the account to the Field (RO), using the following assignments:

      6541: LG$ Asset Case; no paper file
      Sub Code "604" input by the field
      6546: LG$ Asset Case, paper file being forwarded
      Sub Code "604" input by the field

    8. Update history items on DI and submit for approval

    9. Once approved, send all related case documents, including Asset and Locator Services research, Credit Report, etc., to the gaining Territory Office, Attn: Group Manager

5.19.1.12.1.6  (04-28-2008)
Transfer to Revenue Officer

  1. All LG$ accounts transferred to the CFf, or the QUEUE require managerial approval

5.19.1.12.1.6.1  (04-28-2008)
Transfers to the Collection Field Function (CFF)

  1. This subsection details when the taxpayer requests field assignment, and we receive concurrence from the field.

  2. This includes cases where a related account is already in Status 26

  3. Immediately file a NFTL and transfer the account to the Field Revenue Officer if:

    • There is real property equity of at least $50,000

    • At least 30% of the value of the property is determined

    • Other assets are available

    • A jeopardy determination is made

  4. For additional information: See IRM 5.19.1.12.1.5. (d)

5.19.1.12.1.6.2  (04-28-2008)
Unable to Contact and Unable to Locate

  1. For detailed information: See IRM 5.19.1.7.1.17.

5.19.1.12.1.6.3  (04-28-2008)
Transfer to the QUEUE

  1. The LG$ sites, Brookhaven and Buffalo, will only transfer to the QUEUE those cases not meeting criteria for transfer to the Field and they cannot close UTC or UTL due to equity and/or assets.

5.19.1.12.1.7  (04-28-2008)
Currently Not Collectible and Miscellaneous

  1. For Unable to Locate or Unable to Contact closures: See IRM 5.19.1.7.1.17.

  2. If a CID indicator is present on the account: See IRM 5.19.1.4.14.

  3. When notified, by correspondence or telephone, the taxpayer is/was:

    • Decreased:
      5.19.1.4.3 See IRM 5.19.1.4.3.

    • Incarcerated:
      5.19.1.4.7 See IRM 5.19.1.4.7.

    • Residing in an area declared by executive order as Disaster/Emergency Relief:
      See IRM 5.19.1.4.8.

    • Requesting military deferment:
      See IRM 5.19.1.4.9.

    • In a qualified combat zone:
      See IRM 5.19.1.4.10.

    • Litigating a case in Tax Court:
      See IRM 5.19.1.4.11.

    • Killed in terrorist action, killed in action, or an astronaut killed in the line of duty:
      See IRM 5.19.1.4.12.

    • Taken hostage in a terrorist action:
      See IRM 5.19.1.4.13.

5.19.1.12.1.8  (04-28-2008)
Status 24 QUEUE Cases

  1. Accounts currently in the QUEUE, Status 24, must be accelerated to ACS when you are able to resolve the account. Prior to taking closing actions:

    1. Input STAUP2200 0605 to bring the case from the QUEUE to ACS

    2. ASGNI AOTO 0000

    3. Follow up in one or more cycles to take closing action(s)

    4. A NFTL must be filed before closing the case

5.19.1.12.1.9  (04-28-2008)
Incoming Calls or Correspondence Received on Accounts in ACS with Additional IDRS Statuses (22, 24, 58, etc.)

  1. For calls or correspondence received for all W&I and SBSE IMF accounts in Status 22 and other statuses, such as Notice, prior 53, etc., and the combined aggregate assessed balance (AAB) meets LG$ criteria, transfer to the Buffalo or Brookhaven LG$ sites; for LG$ criteria, see LEM 5.19.1.12.9

    1. If appropriate, update all modules to Status 22 before closing the case

      Example:

      If a Status 22 case has an additional module in Notice Status, and the case can be closed as an IA or CNC, include the Notice module in the IA or CNC.

    2. In some instances, you will find accounts with different status codes. The current module is in Status 22 and prior modules were closed as CNC hardship; it is not necessary to reverse the prior CNC, but you must update the account if financial analysis dictates a different CNC closing code

      Example:

      Previous CC 24 new CC 32

    3. Do not wait for all modules to be in Status 22 before conducting required research

      Example:

      IRPTR, AMDIS, Credit Bureau, and other Asset and Locator Services research.

  2. On combo cases, Balance Due and Return Delinquency, where you determine the account can be closed as Unable to Contact, ensure balance due and return delinquency are closed simultaneously

    Example:

    TC530 CC12/TC593 CC80

    Note:

    The authority to close a TDI as Unable to Contact is limited to when there is an associated LG$ account.

5.19.1.12.1.9.1  (04-28-2008)
Hotline Calls (Practitioner, Spanish)

  1. Incoming IMF (W&I and SB/SE) calls received on the Practitioner or Spanish Hotlines are handled in accordance with the following guidelines:

    1. Verify taxpayer information

      Example:

      Address, telephone numbers, levy sources, etc.

    2. If the taxpayer and/or representative had a prior commitment with the LG$ sites, and are requesting an extension due to valid reasons, extend the follow-up by a maximum of ten days

    3. For all other calls, or if the request for extension is more than ten days, refer these to the LG$ sites

    4. Transfer Practitioner Hotline calls to the LG$ Call Site

    5. For calls received in the Spanish "Gate" , explain to the taxpayer you must refer the account to the site processing LG$ accounts and a representative will call within 24 hours; complete Form 4442 and fax to either:
      The Buffalo LG$ Site (W&I)
      or
      The Brookhaven LG$ site (SBSE IMF)

      Note:

      See SERP "Who/Where" , ACS Large Dollar for fax numbers

5.19.1.12.1.10  (04-28-2008)
All Other Sites (ACS Call Sites SBSE and W&I, ACS Support Sites, CSCO, and CDP Units)

  1. Lien/Levy/Letter Perfection: Do not reject an IMF (W&I or SBSE) ACS lien/levy/letter solely on the basis of dollar amount. If the aggregate assessed balance meets criteria, and there are any questions, contact the LG$ Site; for aggregate assessed balance criteria, see LEM 5.19.1.12(1).

  2. See SERP "Who/Where" for ACS Large Dollar contact telephone numbers.

  3. Levy Releases must have LG$ Site concurrence prior to being issued by any other site, including ACS Support, non-LG$ sites, CSCO, TAS, etc. contact with the LG$ site is required stated in (1) above to obtain concurrence.

  4. Correspondence:

    1. For IMF (SB/SE and W&I) ACS/QUEUE correspondence, do not reject or accelerate for immediate field contact solely on the basis of dollar amount; see paragraph (1) above

    2. Correspondence received requesting Installment Agreements or cases meeting CNC criteria on LG$ cases, refer to established dollar criteria, LEM 5.19.1.12.1.10(3)(b).

    3. Such cases are sent to the LG$ sites; update DI and fax documents to the Brookhaven or Buffalo LG$ Site; for fax numbers see SERP/Who Where, ACS Large Dollar;

      Note:

      If more than ten pages overnight mail to the LG$ Site; for additional information:
      See IRM 5.19.1.12.1.2..(2)

    4. All third party responses such as levy response, ACS Letter LP64, Please Help Us Locate a Taxpayer, etc., must be processed by ACS Support; document the case history and do not take the next action. Up date follow date to two days for LG$ site to take next appropriate action.

      Note:

      Only LG$ sites are authorized to work these accounts.

    5. Document the case history upon receipt of correspondence from the taxpayer and/or representative

      Example:

      " 06032005 CRSP RECD SAME FAXED OR MAILED TO LG$ TEAM"

    6. Ensure interim response action, as appropriate; for additional information IRM 5.19.6.14.1

  5. Incoming calls:

    1. Inform the taxpayer or their representative their account is being processed by another site and you will transfer the call to the correct extension, "9625" do not provide this number to the caller

    2. Before transferring the call, verify the taxpayers telephone number and address, and update DI/ACS

    3. The LG$ teams make the changes on IDRS

      Note:

      If you have problems transferring calls to Extension "9625" , from non-ACS co-located sites :
      Transfer W&I taxpayers to Extension "9602"
      Transfer SBSE IMF taxpayers to Extension " 9611"
      Only transfer to these numbers if you cannot transfer to Extension 9625

  6. For SBSE IMF, W&I or QUEUE accounts, do not reject requests or accelerate them to Appeals solely on the basis of dollar amount

    Example:

    If the aggregate assessed balance exceeds established dollar criteria amount , process them according to existing procedures; for associated dollar criteria, see LEM 5.19.1.12.1.10(5).

5.19.1.12.1.11  (04-28-2008)
Field Assistance (TAC Office)

  1. If an IMF (SBSE/W&I) ACS account Status 22, QUEUE Status 24, or Notice Status taxpayer with an aggregate assessed balance (AAB) due above associated dollar criteria goes to a TAC office, the ITAS employee should do the following: See LEM 5.19.1.12.1.11 (1) for AAB dollar criteria. .

    1. Verify taxpayer information

      Example:

      Address, telephone numbers, levy sources, etc.

    2. If the taxpayer and/or representative had a prior commitment with the LG$ sites, and now requests an extension (outside of a 60 day Full Pay request, due to valid reasons, extend the follow-up a maximum of ten days

      Note:

      If account indicates a maximum 60 Full Pay agreement has been previously allowed, do not allow the additional time, refer to the LG$ site for consideration.

    3. If the taxpayer or representative needs an extension of more than ten days explain they must contact the LG$ Sites for additional time

    4. If the taxpayer requests a 60 day or less Full Pay agreement, but has previous defaults, termination, etc., advise them their account is assigned to the LG$ site and, based on the dollar criteria, only the LG$ sites may grant the Installment Agreement

      Note:

      Explain to the taxpayer you will attempt to secure as much expense and income information from them for the required financial analysis and fax or overnight mail it to the LG$ site; most taxpayers should be able to provide income and expense information during the interview and have the substantiating documentation on hand.

    5. Once this information is secured, advise the taxpayer someone from the LG$ site will get contact them as soon as possible

      Note:

      Within 24 hours if documentation is faxed to the LG$ site
      Within 72 hours if information mailed to the LG$ site.

    6. For valid IA request meeting pending IA criteria, input TC971 AC043; for additional information: See IRM 5.19.1.5.4.1. (8)

    7. If the taxpayer is unable to provide any financial information during the interview, they may:
      Call the LG$ site with the information
      Complete Form 433-F, Collection Information Statement
      Complete Form 433-A, Collection Information Statement for Wage Earners and/or Form 433-B, Self-Employed individuals

    8. Advise the taxpayer of the substantiation requirements; for additional information: See IRM 5.19.1.6.

    9. Provide the taxpayer with an appropriate deadline for returning required documentation; for additional information: See IRM 5.19.1.12.1.2.

    10. If the taxpayer indicates they have a hardship, and cannot pay at this time, follow the above guidelines

    11. Accelerate the account to Status 22 if necessary

5.19.1.12.1.12  (04-28-2008)
Large Dollar: Managerial Approvals, Review, and Controls

  1. Managerial approval is required for all case dispositions

    Example:

    Installment Agreement, Currently Not Collectibles, Transfers, Non-filing NFTL determinations, etc.

  2. Do not input on-line IDRS inputs without first securing managerial approval

    Example:

    IAGRE, FRM77, etc.

  3. Ensure case history is also fully documented on DI.

  4. TEACH reviews must be conducted monthly; use Group Code "LG" when entering LG$ case reviews in EQRS.

  5. Managers must maintain a file on case dispositions and all relevant non-ACS or IDRS prints, Locator services and Credit Bureau Reports.

    Note:

    This file may be electronically stored.

  6. Monthly monitoring of credit report, Experian, research is done by the local coordinator and manager.

  7. All levy releases require managerial approval; document case history and input "OADT,00,LP68APP"

5.19.1.12.2  (04-28-2008)
Locator Service Guidelines

  1. Use available asset and locator services tools when researching taxpayer accounts, as appropriate, including:

    • Asset and Locator Services

    • Full, aka long, credit report

    • Equity Analysis

5.19.1.12.2.1  (04-28-2008)
Asset and Locator Services

  1. Use of asset and locator services research is required to verify real property ownership for IA or CNC closures on LG$ cases.

  2. This research tool is also required to locate taxpayers and conduct neighbor checks on CNC UTL/UTC closures.

  3. Check and verify real property ownership on these cases for possible transfer to the field (RO)

  4. At a minimum, use the available service for efficient asset and locator services searches.

  5. Perform all searches by SSN, when available, for best results; a unique name search can be utilized if no data is found via an SSN search.

  6. After appropriate research is conducted and taxpayer ownership remains unclear, perform a property search by address; note other possible addresses, potential for property owned in other states, etc. in the case analysis. Also perform property deed and property assessment searches.

  7. When researching use File Reference "LG$"

  8. Once relevant research is completed on a case, input " OADT,00,A/LSDONE"

  9. Print or save results for managerial approval on all cases where research is done

    1. Real Property verification: After identifying information via a property search, conduct a specific search by address for more refined printout data

    2. Neighbor check: Unless a full search reveals other helpful information via a SSN search, conduct specific address-by-address research for more refined printout data

    3. If using MS-Word or MS-WordPad, copy and paste relevant information to a Word or Text document to print fewer pages.

5.19.1.12.2.2  (04-28-2008)
Credit Report

  1. Access instructions included in "Guide for Accessing Credit Bureau" . Access is limited to designated employees, such as leads, managers and coordinator, as appropriate.

  2. Analysis instructions are included in the credit bureau handout, "Custom Format Credit Profile Report" . Verify financial information for CNC hardship closure, PPIAs and IAs; for additional information: See IRM 5.19.1.12.1.2.

  3. For CNC UTL/UTC closures, look for collection potential such as mortgages, auto loans, new addresses, levy sources, etc.; for additional information: See IRM 5.19.1.7.1.17., UTC/UTL for Large Dollar Cases

  4. Once credit research is complete, input "OADT,00,CRDONE "

  5. Print or save results for the manager for all cases where credit report research was done.

    Caution:

    The Service is prohibited, by the Fair Credit Reporting Act (F.C.R.A.), from using full credit reports, originally obtained for collection purposes, in a fraud investigation. Use of full credit reports is limited to the specific permissible purpose for which the Service obtained the report, namely for collection purposes. Credit report use for fraud, examination or criminal investigations require a summons without exception. Additional uses of a full credit report by the Service, intended for collection purposes, without a summons in a fraud or similar investigation, violates the F.C.R.A.; for additional information see IRM 25.5.4.4.6(1)

5.19.1.12.2.3  (04-28-2008)
Equity Analysis on Assets Found on Credit Bureau

  1. Take the following actions for equity analysis:

    1. If an asset is found on Credit Bureau, contact the taxpayer to determine the status of the potential asset in terms of value and if it can be leveraged to provide payment toward their balance due

    2. Determine the market value of the property by looking at recent real estate sales of this or nearby properties on the report via a Comparable Sales Search

    3. Determine the encumbrances, or amount owed, against the property via taxpayer and Credit Bureau loan information

    4. Subtract the encumbrances from the market value to determine the equity

  2. For IAs, PPIAs or CNC hardship closures, the taxpayer must explain, satisfactorily, why the equity cannot be utilized. For UTC/UTL closures, if the equity is greater than established dollar criteria, confer with management to consider a TFRO for enforcement action; for dollar criteria information, see LEM 5.19.1.12.2.3 (2)

5.19.1.12.3  (04-28-2008)
Processing Correspondence – ACS Large Dollar Site (LG$ Sites)

  1. If on the initial call, the caller states they have a Power of Attorney (POA), but it is not listed via CC CFINQ:

    1. Request the caller fax the Form 2848 while on the phone

    2. If the caller is unable to fax while on the call; they can call back and fax it then

    3. If needed, provide the appropriate mailing address to the responsible CAF Unit.

  2. Provide the taxpayer, or POA, the address to the appropriate Centralized Reconsideration Unit (CRU) if they are submitting documents relating to Examination Reconsiderations; for additional information see IRM 4.13.7-4

  3. Provide the taxpayer and/or POA the address to the appropriate ASFR Unit if they are submitting documents relating to ASFR Reconsiderations; for additional information:

    See IRM 4.13.7-1 for Examination SFR or

    IRM 5.18.1 for Automated Substitute for Return

  4. If the taxpayer requests an OIC, provide the address to the Centralized Offer in Compromise Campuses (COIC) for initial OIC submissions:

    1. Allow the taxpayer sufficient time to submit documents to the COIC Unit

    2. Reassign the account "TOR5" ; the follow-up should be the time the taxpayer requests or you provided, plus an additional 30 days, allowing the COIC Unit to add/update the case on AOIC and allow the TC480 to post.

  5. If the account can be resolved while the taxpayer is on the call, and the taxpayer has all necessary documents/substantiation, less than 10 pages, provide the LG$ site fax number and ensure the fax is picked up while the taxpayer and/or the POA is on hold.

5.19.1.12.3.1  (04-28-2008)
Large Dollar (LG$ Site) Correspondence

  1. LG$ Correspondence from taxpayers is worked by the Buffalo/Brookhaven LG$ sites and are assigned to employees therein; this correspondence includes:

    • Form 2848 , Power of Attorney and Declaration of Representative

    • Form 433-A or Form 433-B, Statement of Financial Condition and Other Information

    • Leave and Earning statements, pay stubs

    • Bank Statements

    • Copies of money order receipts

    • Accounts receivable documents

    • Profit and loss statements

    • Commission statements, etc.

    • Tax returns

    • Form 656, Offer in Compromise

    • Returns and documents for audit reconsiderations

    • Frivolous argument documents

  2. Processing correspondence:

    1. Form 2848, Power of Attorney and Declaration of Representative:

      Update DI, ACSWeb, ACS history, etc. indicating it was received
      Input in ACS Notes:
      POA Names
      CAF number
      Telephone number
      Tax periods covered
      After input, fax or mail to the CAF Unit

    2. Form 656:, Offer in Compromise:

      For an initial Offer in Compromise, mail documents to the Centralized Office in Compromise Campuses (COIC):
      Memphis:
      Internal Revenue Service
      COIC Unit
      PO Box 30803 – AMC
      Memphis, TN 38130-0803
      or
      Brookhaven:
      Internal Revenue Service
      COIC Unit
      PO Box 9007
      Holtsville, NY 11742-9007

    3. Returns and documents for reconsideration of additional assessments:

    ASFR (TC290):: For additional information:
    See IRM 5.18.1.10.2.1.6     		 
    Examination Assessments (TC300)::
    Prepare Form 4442 and forward to the Central Reconsideration Unit (CRU); for additional information:
    See IRM 4.13.7-4

    Note:

    The forwarding address to use is based on which campus did the examination assessment. Look at the first two digits of the DLN to determine the site.

    		 
    Frivolous Argument Documents: Mail to:
    IRS
    Attn: FRP M/S 4450
    1973 N Rulon White Blvd
    Ogden , UT 84404     		 

    ASFR (TC290):: For additional information:
    See IRM 5.18.1.10.2.1.6
    Examination Assessments (TC300)::
    Prepare Form 4442 and forward to the Central Reconsideration Unit (CRU); for additional information:
    See IRM 4.13.7-4

    Note:

    The forwarding address to use is based on which campus did the examination assessment. Look at the first two digits of the DLN to determine the site.

    Frivolous Argument Documents: Mail to:
    IRS
    Attn: FRP M/S 4450
    1973 N Rulon White Blvd
    Ogden , UT 84404

  3. The LG$ Site is responsible for receiving, date stamping, and batching their LG$ correspondence.

  4. If remittances are received in the LG$ Site, identify where to apply the remittance using an ACS letter or copy of the taxpayer’s correspondence as a turnaround document, but ensure it includes:

    • The Taxpayer name

    • The Taxpayer address

    • The TIN

    • The MFT

    • The tax period

    • Stamped with the date received at the LG$ site

  5. Document this information, including the amount of the remittance, in comments. Add the name and address of any levy source identified to the LVY screen. At the call site option, a quick note may be sent to the taxpayer advising them of the correct mailing address.

  6. If cash is discovered, prepare Form 4287, Record of Discovered Remittances; any cash must be converted to a money order; for additional information see IRM 5.1.2.1.12

  7. When a turnaround document is unavailable, prepare Form 3244, Payment Posting Voucher. Use Form 3210, Document Transmittal, to mail remittances to the teller for deposit within 24 hours after receipt.

  8. Date stamp the taxpayer correspondence, including tax returns without remittances and photocopies.

    Note:

    Documents received from other offices, campuses or sites should already be date stamped; however, the LG$ site is required to date stamp them when received in a LG$ site the day they receive the correspondence.

    1. Check Desktop Integration, ACSWeb, IDRS, via CC ENMOD, for correspondence received

    2. If the taxpayer sent in correspondence previously and was batched; associate the new incoming correspondence with the old correspondence (do not make a separate case file)

    3. Associate any suspense file items with the incoming correspondence

    4. Document DI correspondence was received:

      Batch numbers "Axxxxxx" are used for correspondence received from taxpayers or POAs directly in the LG$ site
      Batch numbers "SCxxxxx" are used for correspondence received in a non-LG$ site first and are considered Priority Correspondence; a separate log is kept for these items
      Generate interim responses in accordance with Action 61 guidelines
      For interim response information:
      See IRM 5.19.6.14.1
      For Action 61 guidelines:
      See IRM 21.3.3.4
      Issue LT23 or Correspondence letter 4226C on all correspondence received.

    5. For correspondence received that you can close within five days of receipt, final case disposition and all appropriate input can be completed.

      Example:

      For an original taxable return received on an open TDI:

      Input correct action code "RD599" , " CC44" , etc.
      Annotate case history.
      If you receive returns for an account adjustment, such as an Audit Reconsideration
      Annotate the case history
      Send to the appropriate campus
      If the account has $0 balance due after the adjustment, input TC470 CC 90
      If a partial abatement input TC470
      For instances where the correspondence can be closed immediately, do not issue Letter LT23 or Letter 4226C

    6. Batch all documents received, with a minimum ten taxpayers and maximum 25 taxpayers per batch

    7. Immediately enter History Code "LT23" to issue a correspondence acknowledgement letter to the taxpayer

    8. Reassign the account "TOR1,XX,AXXXXXX"

    9. Maintain a log showing the:

      Date the batch was established  
      Name of employee receiving the batch  
      Batch completion date  

5.19.1.12.3.2  (04-28-2008)
Closed Batches

  1. Sort closed batches as follows:

    1. If correspondence requires retention pending other documents, file correspondence in the suspense file

    2. Write the last two digits of the TIN and the follow-up date in the upper right corner of the document

    3. Reassign the account to the appropriate function

      Example:

      "TOR5, 30, LEVY" , "TOI8" , or " TOR7"

    4. Documents supporting recommendation for Installment Agreements or Currently Not Collectible determinations, including Hardship, or involved in adjustments or payment tracer actions, must be forwarded to the approving manager for review and approval

    5. Destroy all other documents not needed

    6. Ensure batch closing information is returned to the employee maintaining the batch control log

5.19.1.12.3.3  (04-28-2008)
Suspense File

  1. LG$ site must establish and maintain a suspense file including taxpayer correspondence and other case-related documents, which must be retained pending case resolution. A common example is a CIS held pending receipt of verification documentation from the taxpayer or the results of a credit bureau request

  2. Work is kept in file folders based on the follow-up date , month and day

  3. When an ACS account is transferred to a Revenue Officer and taxpayer documents are retained in the suspense file, pull the material from the suspense file and forward to the gaining Revenue Officer or Field Assistance site.

  4. If the account is sent to the QUEUE, transcribe any information from the file to the appropriate screen and destroy the correspondence.

  5. The suspense file mustbe purged weekly using the follow up date:

    1. Access the account on ACS to determine if the document requires further retention

      Example:

      A phone call from taxpayer requesting additional time

    2. Change the follow up date on the document and maintain in the suspense file

    3. If the pending documents are not received, take the next action

      Example:

      Levy, Lien, etc.

    4. If the account is a TFRO, pull the documents and send to the gaining Territory Office, Attn: Group Manager.

    5. If the next action is a Levy and/or Lien, take the action and ensure all necessary information is transcribed on DI

    6. Do not destroy the documents; file the documents with the new follow up

      Note:

      If a levy is unproductive, and you issue a second levy, the documents in the suspense file are destroyed.

5.19.1.12.3.4  (04-28-2008)
Telephone Calls Received for Accounts When Taxpayer or POA Previously Sent Correspondence

  1. Taxpayer Claiming Hardship:

    1. Pull the correspondence received, ensuring the control batch log is annotated, and verify all required documentation was received

    2. If all documentation was received, review the information and make a determination

    3. Explain to the taxpayer or POA you will submit the account for review and approval and contact them within one day for extreme hardship situations and 2-3 days for levy releases.

      Example:

      Extreme hardships include, although not all-inclusive, an eviction, a water/power turnoff situation, etc.

  2. Non-Hardship Situations:

    1. If not a hardship situation, and the taxpayer and/or POA calls asking if correspondence was received, advise the correspondence was received and, as soon as the correspondence is assigned, analyzed and a decision made, we will contact them

    2. Provide an approximate date of completion

    3. If the taxpayer requests an Installment Agreement, ensure TC 971 AC 043 was input if pending IA criteria was met

    4. If TC 971 AC 043 is not input, do so immediately and ensure the account is currently in R1

5.19.1.12.3.5  (04-28-2008)
Closed Case Assembly

  1. Ensure all items rerouted are properly addressed.

  2. Ensure cases sent for approval; CNC, I/A, PPIA, QUEUE , and TFRO have all required documents attached

    Example:

    Accurint prints, Credit Bureau print, case history, etc.

  3. All cases closed as CNC and IA must be retained for three years, although not at the site; these cases must be shipped to the Federal Record Center (FRC) for retention. Ensure all documents leading to a determination to close an account are attached to the case history, including Accurint, Credit Bureau, CIS etc. All PPIA closures must be sent to the Centralized Case Processing (CCP) Site in Philadelphia.

    Note:

    All cases identified as LG$ must continue to be processed and sent to FRC at case closing even if account falls below the LG$ criteria during case processing, i.e taxpayer makes a voluntary lump sum payment.

  4. Destroy any additional documents received not needed after case closure.

  5. Do not destroy original documents received from the taxpayer and/or POA after case closure.

  6. Return these original documents to the taxpayer and/or POA

    Example:

    Birth certificate, death certificate, etc.

Exhibit 5.19.1-1  (04-28-2008)
Collection Status Codes and Definitions

The Collection Status Code(s) reflect the current activity and/or state of the account. It is imperative you are aware of the status code(s), as the status code determines whether you can work the account.

If... And... Then...
The status code is present on IDRS The same status code is present on CFOL Follow procedures for the status code on IDRS
The status code is present on IDRS A different status code is present on CFOL Research CFOL and IDRS for procedures when working the case
The status code is not present on IDRS

Example:

A "MFREQ’d" account

The Status code is present on CFOL Research CFOL for procedures when working the case
The account is not on IDRS The status code is present on CFOL Research CFOL for procedures when working the case

Example:

If the account is in Status 22 on CFOL, and IDRS has no status code present, research CFOL, using CC IMFOL and CC BMFOL, to determine if action is necessary, such as TC 530 cc 03.

An account on CFOL, via CC IMFOL or CC BMFOL, only, with a MF Collection Status Code 22 or 26, must be researched and worked by the receiving area. DO NOT transfer these calls or correspondence to ACS. These accounts are no longer in ACS control or inventory:

  • Status 12: Accounts having been full paid

  • Status 19: Master File Settlement Notice, issued when the return is assessed on Master File, and issued prior to the Return Due Date (RDD). No further collection action is taken or notices issued until after the RDD

  • Status 20: Indicates the return was filed and the tax assessed, the Second Notice was issued (IMF only)

  • Status 21: Master File Settlement Notice. Issued after the return is assessed on Master File (First Notice); this notice issuance is mandatory by law

  • Status 22: ACS-controlled module; if no access to ACS, transfer the call to ACS or give the taxpayer the toll-free number for ACS and refer correspondence to the appropriate ACS Support site; for additional information on telephone numbers and procedures:
    See IRM 5.19.1.3.

  • Status 23: Indicates the module is below deferral amount. An installment agreement or extension of time to pay may be granted provided collection guidelines are met; for additional information
    See IRM 5.19.1.5.4.

  • Status 24: This status reflects entities assigned to the Resource and Workload Management System (RWMS) queue and were placed in the queue by ACS or CFf; all CSRs or tax examiners working correspondence or telephone calls work this status, such as granting installment agreements or other necessary actions

  • Status 26: Accounts assigned to a Revenue Officer (RO) in the Field Collection Division, a MMIA case, or ASFR; for procedures and referral information:
    See IRM 5.19.1.3. (6)

  • Status 47: This is a temporary freeze on an lDRS Notice Status account when a TC 470 is input with no cc; this status suppresses all IDRS balance due notices up to a maximum of 15 cycles

  • Status 48: Indicates CC STAUP was input to delay notices; for this Status, ensure you research IDRS or DI history to determine the reason for the STAUP

  • Status 50: CC STAUP generates this Status when Status 20, 22, 24, 26, 56 or 58 is requested and the number of cycles is 00; this accelerates the module to the requested Notice/TDA Status

  • Status 53: A module in Status 53 has one of two meanings:
    The module was determined Currently Not Collectible; TC 530 is present, or
    There is a claim pending via TC 470
    All CSRs work Status 53 accounts following IRM procedures

  • Status 56: Indicates CP 503 was issued, the Third notice to the taxpayer for IMF only)

  • Status 58: Indicates CP 504 was issued; this is the fourth and final Notice issued to the taxpayer for IMF accounts and second and final notice for BMF accounts

  • Status 60: Indicates the account is in Installment Agreement, extension, or a continuous wage levy status

  • Status 61: This Status generates when certain conditions specified in the Installment Agreement are encountered

    Example:

    If the taxpayer has an IA for 1991, Status 60, and files their 1992 return with a balance due, the 1991 account updates from Status 60 to 61

    Update the installment agreement if needed; for additional information:
    See IRM 5.19.1.5.4.25.

  • Status 63: Indicates the taxpayer has two or more TINs, IMF and/or BMF, included in their agreement, one account in Status 60 and the other(s) in Status 63; for additional information:
    See IRM 5.19.1.11.2.3.

  • Status 64: These are accounts having been defaulted due to a new delinquency module, or TDA, , insufficient payments, etc.; for procedures to reinstate these accounts:
    See IRM 5.19.1.5.4.24.

  • Status 71: Indicates an Offer-In-Comprise (OIC) is pending/in suspense; an unreversed TC 480 or 780 exists on the account

    Note:

    Refer such case to OIC Support

  • Status 72: These accounts involve bankruptcy and/or cases in litigation; take no action

    If... Then...
    The taxpayer requests information Refer them to the appropriate Insolvency telephone number
    or
    Send Form 4442, Inquiry Referral, to the appropriate territory office.
    The closing code is 76 or 77 These are Collection Due Process cases and must be referred to the CDP caseworker in ACS Support

  • Status 77: Indicates an account was accelerated to the Final Notice Status; when appropriate, you may establish an Installment Agreement on accounts in this Status.

If the account shows no IDRS collection status, the campus may reestablishing the account on IDRS; for additional information and a complete list of status codes:

See Document 6209, Section 8-3 MF, and IDRS Collection Status Codes

Exhibit 5.19.1-2  (04-28-2008)
Collection Notice/Statuses

There are several types of balance due notices including, but not limited to, the following:

  • Master File notices, issued when the assessment is made on IDRS

  • IDRS notices

  • Non-Master File notices

  • ACS Letters

At times, Form 3552, Prompt Assessment Billing assembly, is issued prior to the assessment posting on IDRS, occurring when the account goes to TDA Status.

The chart below outlines the timing of balance due notices and TDA cycle:

Master File First Notice Second Notice Third Notice Final Notice TDA
IMF Status 19/21: MF Notice issue, five (5) weeks before next Notice Status 20: IDRS CP 501 issued, five (5) weeks until next Notice Status 56: IDRS CP 503 issued, five (5) weeks until next Notice Status 58: IDRS CP 504 issued, five (5) to ten (10) weeks until TDA issued TDA: Status 22, 24 and 26
BMF Status 19/21: MF Notice issued, five (5) weeks before next Notice. N/A N/A Status 58: IDRS CP 504 issued, five (5) to ten (10) weeks until TDA issued TDA: Status 22, 24 and 26
IRAF Status 19/21: MF Notice issued, five (5) weeks before next Notice N/A N/A Status 58: IDRS CP 504 issued, five (5) to ten (10 )weeks until TDA issued TDA-Status 22, 24 and 26
NMF N/A N/A N/A Not on IDRS; Form 4840, Final Notice, six (6) weeks until TDA issued On IDRS, with definer "N" after the SSN Form 4907, TDA/Taxpayer Delinquent Account, Status 26

Exhibit 5.19.1-3  (06-22-2005)
Form 2159, Payroll Deduction Agreement, Payroll Deduction Federal Agency Contact

Use the following addresses to submit Form 2159, Payroll Deduction Agreement, for Federal employees:

Caution:

Ensure you use the address in the last block for all retirees.

If employees associated with... Then send Forms 2159 to...
Department of Treasury Employee

Note:

This includes IRS employees


United States Department of Agriculture (USDA)
Department of Commerce
Department of Justice 		USDA–NFC
Attn.: ABCO/Payroll Personnel Section 3,
USDA-OFM-NFC
P.O. Box 61765
New Orleans, LA 70161
Phone: 504–255–4630
FAX: 504–426–9762
United States Postal Service (USPS) United States Postal Service
Manager, Payroll Processing Branch
2825 Lone Oak Parkway
Eagan, MN 55121–9650
Being Federal Retirees Office of Personnel Management Retired
Attn.: Retirement Program
P. O. Box 961
Washington, DC 20044
Phone: 202–606–0214
FAX: 202–606–4237

Exhibit 5.19.1-4  (04-28-2008)
IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAORG for AM/CSCO/FA

When inputting a full pay within 120 day agreement on an account for which there is no prior installment agreement or full pay within 120 day information on IDRS, CC IAGRE defaults to IAORG. Use the template and instructions below for correct input of full pay agreements within 120 days:

IAORG XXX-XX-XXXX__NAME
1. AGREEMENT LOCATOR NO
2. __AGREED BALANCE DUE> 3. <ZIP CD> 4. <LTR.IND
5. __>__>__PMT AMTS 6. USER FEE CD
7. PAYMENT DATE__> 8. ORIGINATOR CODE 9. PPIA IND
10. __>__>__<PAYMENT DUE CYCLES
11. __AGREEMENT REVIEW DATE>__<AGREEMENT ACCEPTANCE DATE
12. < ASSESS IND> 13. <AGRD SKIP
14. <REMIND SUP > 15. <REVIEW SUP> 16. <DFLT SUP

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND


<EFT IND> <BK ACCT TYPE>__<BK CUSTOMER NAME
<BANK NUMBER>__<BK ACCT NUMBER> <CHECK DIGIT

<PAYEE PRIM NAME

<PAYEE CONT NAME

<PAYEE CARE OF NAME

<PAYEE STREET

<PAYEE CITY ST ZIP

  1. Agreement Locator Number: Enter " 9999"

  2. Agreed Balance Due: Enter ".00"

  3. Zip Code: Leave blank

  4. Letter Indicator: Enter"N" ; no systemic letter generates

    Note:

    Always use CC LETER to send confirmation Letter 0681C.

  5. Payment Amounts: Enter the full pay amount, per IDRS CC INTST, or the DI Full Pay Calculator, in the first payment field

  6. User Fee Code: Enter "3"

  7. Payment Date: Enter the date the payment is due

    Reminder:

    If the payment due date is the 29th through the 31st day of the month, enter "01" .

  8. Originator Code: For additional information:
    See IRM 5.19.1-10

  9. PPIA IND: Leave blank

  10. Payment Due Cycles:

    If... Then...
    Full payment is due in: 11 to 30 days Add five cycles to the cycle of input
    Full payment is due in 31 to 60 days Use the cycle of the actual full pay date

    Note:

    If using " 01" for the Payment Date, because the true payment date is the 29th through the 31st of the month, enter the cycle in which the first of the next month falls

  11. Agreement Review Date: Leave blank

  12. Assessment Indicator:

    If... Then...
    An anticipated assessment, such as Examination, AUR or a current year return not yet posted, will post to IDRS within ten weeks for pre-assessed modules
    or
    There is a module on Master File only to be included and MFREQ was done.     		Enter "1"
    The above conditions are not applicable Leave blank.

  13. Agreed Skip: Enter "0" ; no skip is permitted

  14. Reminder Notice Suppression: Enter " 1"

  15. Review Suppression: Enter "1"

  16. Default Notice Suppression: Enter " 1"

Exhibit 5.19.1-5  (04-28-2008)
IDRS Input of Full Pay Agreements, 120 Days or Less, CC IAREV for AM/CSCO/FA

When inputting a full pay within 120 days agreement on an account for which there is prior installment agreement or full pay within 120 days information on IDRS, IAGRE defaults to IAREV. Use the template and instructions below for correct input of full pay agreements within 120 days

IAREV XXX-XX-XXXX__NAME REV __ACT> 1. <
2. AGREEMENT LOCATOR NO
3. __AGREED BALANCE DUE> 4. <ZIP CD> 5. <LTR.IND
6. __>__>__PMT AMTS 7. USER FEE CD
8. PAYMENT DATE__> 9. ORIGINATOR CODE 10. PPIA IND
11. __>__>__<PAYMENT DUE CYCLES
12. __AGREEMENT REVIEW DATE>__<AGREEMENT ACCEPTANCE DATE
13. < ASSESS IND> 14. <AGRD SKIP
15. <REMIND SUP > 16. <REVIEW SUP> 17. <DFLT SUP

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND


<EFT IND> <BK ACCT TYPE>__<BK CUSTOMER NAME
<BANK NUMBER>__<BK ACCT NUMBER> <CHECK DIGIT

<PAYEE PRIM NAME

<PAYEE CONT NAME

<PAYEE CARE OF NAME

<PAYEE STREET

<PAYEE CITY ST ZIP

  1. Review Action: Enter "1"

  2. Agreement Locator Number: Enter " 9999"

  3. Agreed Balance Due: Enter ".00"

  4. Zip Code: Leave blank

  5. Letter Indicator: Enter"N" ; no systemic letter generates

    Note:

    Always use CC LETER to send confirmation Letter 0681C.

  6. Payment Amounts:

    If... Then...
    The User Fee is not an issue Enter the full pay amount (per IDRS CC INTST or the DI Full Pay Calculator) in the first payment field
    Necessary to collect the User Fee Use CC INTST or DI Full Pay Calculator to compute the payoff amount to the full pay date, the date the taxpayer agrees to full pay the balance due
    Add the appropriate User Fee amount, $105 or $45
    Enter the total amount as the First Payment Amount

  7. User Fee Code: Enter "3"

    Note:

    If the account is ST6X, and the user fee is not yet paid:
    See IRM 5.19.1.5.4.24.(8)

  8. Payment Date: Enter the date the payment is due

    Reminder:

    If the payment due date is the 29th through the 31st day of the month, enter "01" .

  9. Originator Code: For additional information:
    See IRM 5.19.1-10

  10. PPIA IND: Enter "0"

  11. Payment Due Cycles:

    If... Then...
    Full payment is due in: 11 to 30 days Add five cycles to the cycle of input as the first payment due cycle
    Full payment is due in 31 to 60 days Use the cycle of the actual full pay date

    Note:

    If using " 01" for the Payment Date, because the true payment date is the 29th through the 31st of the month, enter the cycle in which the first of the next month falls

  12. Agreement Review Date: Enter 26 cycles from the cycle of input

  13. Assessment Indicator:

    If... Then...
    An anticipated assessment, such as Examination, AUR or a current year return not yet posted, will post to IDRS within ten weeks for pre-assessed modules
    or
    There is a module on Master File only to be included and MFREQ was done.     		Enter "1"
    The above conditions are not applicable Leave blank.

  14. Agreed Skip: Enter "0"

  15. Reminder Notice Suppression:

    If... Then...
    If a user fee is due and there are no payments on the module to transfer to the user fee module Enter "0"
    Any other cases Enter "1"

  16. Review Suppression: Enter "1"

  17. Default Notice Suppression: Enter " 1"

Exhibit 5.19.1-6  (04-28-2008)
IDRS Input of Installment Agreements, CC IAORG

When inputting an installment agreement on an account for which there is no prior installment agreement or full pay within 120 days information on IDRS, IAGRE defaults to IAORG. Use the template and instructions below for correct input of installment agreements:

IAORG XXX-XX-XXXX__NAME
1. AGREEMENT LOCATOR NO
2. __AGREED BALANCE DUE> 3. <ZIP CD> 4. <LTR.IND
5. __>__>__PMT AMTS 6. USER FEE CD
7. PAYMENT DATE__> 8. ORIGINATOR CODE 9. PPIA IND
10. __>__>__<PAYMENT DUE CYCLES
11. __AGREEMENT REVIEW DATE>__ 12. <AGREEMENT ACCEPTANCE DATE 13. <ASSESS IND> 14. <AGRD SKIP
15. <REMIND SUP> 16. <REVIEW SUP > 17. <DFLT SUP

18. __CR TIN>__ 19. < NC>__ 20. <ASSESS IND

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND


<EFT IND> <BK ACCT TYPE>__<BK CUSTOMER NAME
<BANK NUMBER>__<BK ACCT NUMBER> <CHECK DIGIT

21. __<PAYEE PRIM NAME

22. __<PAYEE CONT NAME

23. __<PAYEE CARE OF NAME

24. __<PAYEE STREET

25. __<PAYEE CITY ST ZIP

  1. Agreement Locator Number: For the correct agreement locator number:
    See IRM 5.19.1-9

  2. Agreed Balance Due: Enter ".00"

  3. Zip Code:

    If... Then...
    Sending a systemic IA confirmation letter Enter the taxpayers five digit zip code
    Not sending a systemic IA confirmation letter Leave blank.

  4. Letter Indicator: Enter "E" for English, or "S" for Spanish, to generate a systemic confirmation letter;

    Note:

    "N" will not generate a systemic letter; always input "N" when inputting a CTLV-IA.

  5. Payment Amounts:

    Enter monthly payment amount in the first field  
    Use the second and third payment amount fields for installment agreements with scheduled increased or decreased payment amounts  

  6. User Fee Code: For the correct user fee code:
    See IRM 5.19.1-11

  7. Payment Date: Enter the day of each month payments are due

    Example:

    "01" through " 28"

  8. Originator Code: For additional information:
    See IRM 5.19.1-10

  9. PPIA IND:

    If... Then...
    A PPIA Enter "2"
    Not a PPIA Leave blank

  10. Payment Due Cycles: The cycle in which a new monthly payment amount is due:

    Enter at least 4 - 8 cycles from the current cycle
    If there are multiple payment amounts in Item "5" above, enter the second and third payment cycles as appropriate

  11. Agreement Review Date:

    If... Then...
    A CTLV. See IRM 5.19.4.4.6(7)
    Not a CTLV Leave blank

  12. Agreement Acceptance Date:

    If input of the installment agreement on IDRS is delayed, input the Agreement Acceptance Date in order for the quarter percent FTP penalty to be assessed
    Enter the date the agreement was accepted, not the date of input
    For streamline IAs, the acceptance date is the date the agreement was determined to be acceptable
    For input of an agreement requiring approval, enter the date the manager approved the agreement as the acceptance date
    When left blank, the field defaults to reflect the current date

  13. Assessment Indicator:

    If... Then...
    An anticipated assessment, such as Examination, AUR or a current year return not yet posted, posts to IDRS within ten weeks for pre-assessed modules
    or
    There is a module on Master File only to be included and MFREQ was done.     		Enter "1"

    Note:

    When entering "1 " , enter a history item on DI recording pre-assessed modules and their balances to be included in the agreement

    The above conditions are not applicable Leave blank.

  14. Agreed Skip:

    If... Then...
    A PDIA or CTLV Enter "0"
    The above conditions are not applicable Leave blank

  15. Reminder Notice Suppression:

    If... Then...
    A CTLV-IA Enter "1"
    Not a CTLV-IA Leave blank

  16. Review Suppression: Used to suppress the future review of the installment agreement as described in item "11 " above; enter as follows:

    "1" unless the agreement is a PPIA
    "5" if an IMF PPIA
    "6" if a BMF PPIA

  17. Default Notice Suppression:

    If... Then...
    A CTLV-IA Enter "1"
    Not a CTLV-IA Leave blank

  18. Cross Reference TIN: Enter a cross-reference TIN if appropriate

  19. Name Control: Enter the name control for any cross-reference account

  20. Assessment Indicator: Enter "1" if pre-assessed modules under the cross-referenced TIN are to be included in the IA

    Note:

    If entering "1" , enter a history item on DI recording pre-assessed modules to be included in the agreement

  21. Payee Primary Name Line: Enter a employer/levy source name if a PDIA or CTLV-IA

  22. Payee Name Continued: Continue the levy source name here, if needed

  23. Payee Care Of Name: Enter a "care of" name if a PDIA or CTLV-IA, if needed

  24. Payee Street Address: Enter the employer/levy source street address, if a PDIA or CTLV-IA

  25. Payee City, State, And Zip Code: Enter the employer/levy source city, state, and zip code, if a PDIA or CTLV-IA

    Note:

    Leave no spaces in this field.

    Example:

    If the city, state,, and zip code are "Kansas City, MO 64121" , enter "KANSASCITY,MO,64121" .

Exhibit 5.19.1-7  (04-28-2008)
IDRS Input of Installment Agreements, CC IAREV

When inputting an installment agreement on an account for which there is prior installment agreement or full pay agreement within 120 days information on IDRS, IAGRE defaults to IAREV. Use the template and instructions below for correct input of installment agreements:

IAREV XXX-XX-XXXX__NAME REV __ACT> 1. <
2. AGREEMENT LOCATOR NO
3. __AGREED BALANCE DUE> 4. <ZIP CD> 5. <LTR.IND
6. __>__>__PMT AMTS 7. USER FEE CD
8. PAYMENT DATE__> 9. ORIGINATOR CODE 10. PPIA IND
11. __>__>__<PAYMENT DUE CYCLES
12. __AGREEMENT REVIEW DATE>__ 13. <AGREEMENT ACCEPTANCE DATE
14. <ASSESS IND> 15. <AGRD SKIP
16. <REMIND SUP> 17. <REVIEW SUP > 18. <DFLT SUP

19. __CR TIN>__ 20. < NC>__ 21. <ASSESS IND

CR TIN>__<NC>__<ASSESS IND

CR TIN>__<NC>__<ASSESS IND


<EFT IND> <BK ACCT TYPE>__<BK CUSTOMER NAME
<BANK NUMBER>__<BK ACCT NUMBER> <CHECK DIGIT

22. __<PAYEE PRIM NAME

23. __<PAYEE CONT NAME

24. __<PAYEE CARE OF NAME

25. __<PAYEE STREET

26. __<PAYEE CITY ST ZIP

  1. Review Action: Enter "1"

  2. Agreement Locator Number: For the correct agreement locator number:
    See IRM 5.19.1-9

  3. Agreed Balance Due: Enter ".00"

  4. Zip Code:

    If... Then...
    Sending a systemic IA confirmation letter Enter the taxpayer’s five digit zip code
    Not sending a systemic IA confirmation letter Leave blank

  5. Letter Indicator: Enter "E" for English, or "S" for Spanish, to generate a systemic confirmation letter

    Note:

    "N" will not generate a systemic letter; always input an "N" when inputting a CTLV-IA.

  6. Payment Amounts: Enter the monthly payment amount in the first field; use the second and third payment amounts for installment agreements with scheduled increased or decreased payment amounts

  7. User Fee Code: For the correct user fee code
    See IRM 5.19.1-11

  8. Payment Date: Enter the day of each month payments are due

    Note:

    "01" through "28"

  9. Originator Code: For the correct originator code:
    See IRM 5.19.1-10

  10. PPIA Indicator:

    If... Then...
    A PPIA Enter "2"
    Not a PPIA Leave blank

  11. Payment Due Cycles:

    Enter at least 4 - 8 cycles from current cycle
    If multiple payment amounts apply in Item "5" above, enter the second and third payment cycles as appropriate

  12. Agreement Review Date:

    If... Then...
    A CTLV, see IRM 5.19.4.4.6(7) See IRM 5.19.4.4.6(7)
    Not a CTLV Leave blank

  13. Agreement Acceptance Date:

    If input of the installment agreement on IDRS is delayed, input the Agreement Acceptance Date in order for the quarter percent FTP penalty to be assessed
    Enter the date the agreement was accepted, not the date of input
    For streamline IAs, the acceptance date is the date the agreement was determined to be acceptable
    When inputting an agreement requiring approval, enter the date the manager approved the agreement as the acceptance date
    When left blank, the field defaults to reflect the current date

  14. Assessment Indicator:

    If... Then...
    An anticipated assessment, such as Examination, AUR, or a current year return not yet posted, posts to IDRS within ten weeks for pre-assessed modules Enter "1"

    Note:

    If entering "1" , enter a history item on DI recording pre-assessed modules and their balances to be included in the agreement

    The above conditions are not applicable Leave blank

  15. Agreed Skip:

    If... Then..
    The account is no longer status 6X Enter "1"
    A CTLV, PDIA, or the account is status 6X
    and
    The agreement is being reinstated     		Enter "0"
    The account is status 6X
    and
    The agreement is being revised     		Leave blank

  16. Reminder Notice Suppression:

    If... Then...
    A CTLV-IA Enter "1"
    Not a CTLV-IA Enter "0"

  17. Review Suppression: Used to suppress the future review of the installment agreement as described in item "12 " above:

    If... Then...
    The agreement is not a PPIA Enter "1"
    An IMF PPIA Enter "5"
    A BMF PPIA Enter "6"

  18. Default Notice Suppression:

    If... Then...
    A CTLV-IA Enter "1"
    Not a CTLV-IA Enter "0"

  19. Cross Reference TIN: Enter the cross-reference TIN if appropriate

  20. Name Control: If the IA includes a cross-referenced account, enter its name control

  21. Assessment Indicator: Enter "1" if pre-assessed modules under the cross-referenced TIN are to be included in the IA

    Note:

    If entering "1" , enter a history item on DI recording pre-assessed modules and their balances to be included in the agreement.

  22. Payee Primary Name Line: Enter the employer/levy source name if a PDIA or CTLV-IA

  23. Payee Name Continued: Continue the levy source name here, if needed

  24. Payee Care Of Name: Enter a "care of" name if a PDIA or CTLV-IA, if needed

  25. Payee Street Address: Enter the employer/levy source street address if a PDIA or CTLV-IA

  26. Payee City, State, And Zip Code: Enter the employer/levy source city, state, and zip code if a PDIA or CTLV-IA

    Note:

    Leave no spaces in this field.

    Example:

    If the city, state, zip code are "Kansas City, MO 64121" , enter "KANSASCITY,MO,64121" .

Exhibit 5.19.1-8  (04-28-2008)
IDRS Input of Pre-assessed IAs and Extensions

Input pre–assessed installment agreements on IDRS using the following procedures; for additional information:

See IRM 2.4.30

  1. Input CC IAGRE, which returns CC IAPND if there are no balance due assessments present; if other assessed balance due modules are involved, refer to related information for input of installment agreements
    See Exhibit 5.19.1-6.

  2. Agreement Locator Number (ALN): Input using the appropriate ALN; for additional information:
    See Exhibit 5.19.1-9..

    Caution:

    If CC IAREV is returned, ensure to update old data with the correct ALN.

  3. Taxpayer's Universal Location Code, Area Office (ULCAO) Agreement Locator Number (ALN): Input using the ALN; for additional reference information:
    See Exhibit 5.19.1-9.
    See the Job Aid for ULCAO

  4. MFT: The earliest module must be present on the initial IAPND input screen.

  5. Tax Period (TXPRD): The earliest module must be present on the initial IAPND input screen.

  6. Agreed Balance Due: This must be input on initial input.

  7. Zip Code: This must be present if the LTR indicator value is "Y." .

  8. LTR IND: This must be "Y" to generate a systemic confirmation letter, "N" does not generate the systemic letter. Use Letter 2273C, Installment Agreement Accepted - Terms Explained, if there are issues other than the pre-assessed modules to address. Send Letter 681C, Proposal to Pay Accepted, for extensions. Use CC LETER, DOALL or the DI TAC window to manually send a confirmation letter.

  9. Payment Amount: You must enter the payment amount in the first field. Use the second and third payment amount fields for IAs with scheduled increased or decreased payment amounts.

  10. User Fee: Input "0" for new agreements or "2" for extensions of time to pay.

  11. Payment Date: Only "0 – 28 " are valid dates.

  12. Originator Code: This must be present for a new pending IA or extension of time to pay. Use the appropriate Originator Code; for additional information:
    See Exhibit 5.19.1-10.
    See IRM 2.4.30.7

  13. PPIA-IND: Leave this field blank if not a PPIA and "0 " generates. If establishing a PPIA, campus employees always use "2" . The value of "1" is reserved for Field asset cases only.

  14. First Payment Due Cycle: If an installment agreement, input at least 4 – 6 weeks from the current cycle. If there are multiple payment amounts in item "9" above, enter the second and third payment cycle as appropriate. If extensions of time to pay, First Payment Due Cycle: input payment cycle – 05 cycles for 11 to 30 days, 13 cycles for 31 to 90 days, and 17 cycles for 91 to 120 days.

  15. Agreement Review Cycle: Leave blank.

    Exception:

    If IAREV is returned instead of IAORG because of a previous agreement, you must update the review date for three years except when establishing a PPIA. If establishing a PPIA enter a review cycle two years from the cycle of input; for additional information:
    See IRM 5.19.1.5.5.4.(1)(b)

  16. Agreement Acceptance Date: If the agreement is immediately input upon acceptance, no input is necessary.MUST be entered if the agreement is not immediately input upon acceptance

    Note:

    The agreement is accepted, but sent to another location for input.

  17. This is not the date the request was received from the taxpayer; it is the date you have all information needed and make the determination the request is acceptable. This date is the date the computer uses to determine any failure to pay penalty rate (.50 or .25 percent). If the agreement is erroneously defaulted, ensure the original acceptance date is entered here, unless the date is prior to January 1, 2000.

  18. Assessment Indicator: Leave blank. When using CC IAPND for a pre-assessed module, you need not input an indicator of "1" ; the computer updates to ST 60 after the Master File notice generates.

  19. Agree Skip Code: Leave blank for an installment agreement, input "0" for an extension.

  20. Suppress Reminder Notice indicator: Input a "1" if an 11 to 30 day extension to suppress the reminder notice; otherwise, leave blank or enter "0."

  21. Suppress Review Notice Indicator: Always input "1" in this field.

  22. Suppress Default Notice Indicator: Leave blank if an installment agreement, input a "1" if an full pay agreement. DO NOT input the EFT codes unless you are authorized to use these command codes. Only CSCO employees input DDIA agreements.

  23. EFT Indicator: Input "1" to turn on the request to the bank.

  24. Bank Account Type: Input "IC" for Individual bank account, or "BC" for Business checking account.

  25. Bank Customer Name: Must be input if the EFT IND is "1" .

  26. Bank Number: Must be input

  27. Bank Account Number: Must be input if the EFT IND is "1" .

  28. Check Digit: This must be input if the EFT IND is "1" .

  29. Input levy and telephone number information on IDRS if above deferral.

Exhibit 5.19.1-9  (04-28-2008)
Installment Agreement Locator Numbers

All installment agreements are identified by type and originator. Input the appropriate Installment Agreement Locator Number as defined below. There are two values making up the Agreement Locator Number, defined here as:

  • "XX"
    and

  • "YY"

The "XX" position denotes Initiator/Type of agreement; these values are:

  • "00:" Form 433–D, Installment Agreement, initiated by a territory office on an ACS case

  • "01:" Campus and toll-free initiated agreement

  • "02:" Area office (Revenue Officer) initiated Form 433–D, agreements

  • "03:" Direct Debit Installment Agreements initiated by any function, but input only by CSCO

  • "06:" Examination-initiated agreements

  • "07:" Submission Processing-initiated agreements

  • "08:" Agreements initiated by other functions

  • "11:" Form 2159, Payroll Deduction Agreement, initiated by a territory office or ACS

  • "12:" Area office or ACS, except for DDIA agreements; always use "03" for DDIA cases and enter history on ENMOD regarding agreement with multiple conditions

    Exception:

    When processing such cases, ACS uses DI to enter this history, instead of CC ENMOD.

  • "20:" Status 22/24 accounts, call site/CSCO

  • "90:" CSCO-initiated agreements, other than Status 22 or 26

  • "91:" Form 2159, initiated by CSCO

  • "92:" CSCO agreement with multiple conditions, except for DDIA agreements

    Note:

    Always use " 03" for DDIA cases and enter history on ENMOD regarding multiple conditions.

  • "99:" Full Payment Request; this is not an installment agreement

The "YY" position denotes conditions affecting the agreement; these values are:

  • "08:" Continuous Wage Levy, from ACS or a RO

  • "09:" All other conditions

  • "12:" Partial Pay Installment Agreement (PPIA)

  • "15:" BMF In–Business Trust Fund, all Functions

  • "27:" Restricted Interest/Penalty condition present

  • "32:" Unassessed modules to be included in agreement

  • "36:" Streamlined Installment Agreement

  • "41:" BMF In–Business Deferral Level, for CSCO use only

  • "53:" Report CNC in the event the agreement defaults

  • "63:" Cross–Reference TIN, Status 63

  • "66:" File lien in event of default

  • "70:" Secondary taxpayer responsible for Joint Liability

  • "80:" Review and revise payment amount

  • "99:" Full Pay Request; this is not an installment agreement

When an agreement has more than one condition, use either " 12" or "92" in the "XX" position

Exception:

For a PDIA, use "11"
For a DDIA, use "03"
Assign the primary condition " YY" based on the following priorities:

  • "63"

  • "53"

  • "32"

  • "15"

  • "12"

  • "41"

Update DI to reflect pertinent information needed by the IAAL process, such as:

  • Unassessed modules and/or lien filing

  • TC 530 Action Code for reactivation on back-up 53 modules

    "UM30200412 $7,500" :
    Unassessed module
    MFT 30
    200412 Tax Periods
    Amount of assessment $7,500
    or
    "UMFILELIEN" :
    Unassessed module
    File lien if appropriate
    "PPIA/CNCXX" :
    Partial Payment Installment Agreement with backup 53, where "XX" = the TC530 action code for TPI reactivation; the values are 24 to 32
    "PPIA/xref" :
    Partial Payment Installment Agreement with cross referenced TIN

Exhibit 5.19.1-10  (04-28-2008)
Installment Agreement Originator Codes

The following is a complete list of installment agreement originator codes:

Note:

When setting up agreements with CC IAREV which are no longer in installment agreement status, 6X, revise the originator code, if appropriate.

  • "10" : Collection Support Function regular agreement

  • "11" : Collection Support Function streamline agreement

  • "20" : Collection Field Function regular agreement

  • "21" : Collection Field Function streamline agreement

  • "30" : Reserved

  • "31" : Reserved

  • "40" : Obsolete

  • "41" : Obsolete

  • "42" : Obsolete

  • "45" : Obsolete

  • "46" : Obsolete

  • "50" : Collection Walk–in regular agreement

  • "51" : Collection Walk–in streamline agreement

  • "58" : Field Assistance ICS, regular agreement

  • "59" : Field Assistance ICS, streamline agreement

  • "60" : Examination Division regular agreement

  • "61" : Examination Division streamline agreement

  • "70" : Customer Service, Toll–Free, regular agreement

  • "71" : Customer Service, Toll–Free, streamline agreement

  • "72" : CSCO regular agreement

  • "73" : CSCO streamline agreement

  • "74" : Customer Service Voice Response Unit, system generated

  • "75" : Compliance Automated Collection System regular agreement

  • "76" : Compliance Automated Collection System streamline agreement

  • "77" : Compliance Automated Collection System Voice Response Unit regular, system generated

  • "78" : Compliance Automated Collection System Voice Response Unit streamline, system generated

  • "80" : Other regular agreement

  • "81" : Other streamline agreement

  • "82" : On-Line Payment Agreement, Notice Status

  • "83" : On-Line Payment Agreement, ACS

  • "90" through "99" : Reserved for Vendors, all streamline agreements

  • "98" : Private Debt Collection; limited to Referral Unit only

Exhibit 5.19.1-11  (04-28-2008)
Installment Agreement User Fee Codes

Installment agreement user fee codes must be entered every time any pending or active installment agreement is initiated or revised. CC IADFL and the weekly TDA Analysis program will automatically set the user fee code to "4" , reinstatement fee due, when the agreement defaults for any reason.

Caution:

A user fee is never collected when the account is not previously revised, reinstated or defaulted, and remains in Status 60 continuously prior to March 16, 1995. The input is User Fee Code "9" .

Valid installment agreement user fee codes are:

  • "0" : Origination User Fee Due, $43, or $105 for IAs with agreement acceptance date beginning January 2, 2007

  • "1" : Origination User Fee Paid

  • "2" : Origination User Fee Waived; for instances in which the feel can be waived:
    See IRM 5.19.1.5.4.3.(4)

  • "3" : Continuous levies and Full Pay, formerly Extension of Time to Pay. no fee due

  • "4" : Reinstatement User Fee Due, $24, or $45 for IAs reinstated/revised after January 2, 2007

  • "5" : Reinstatement User Fee Paid

  • "6" : Reinstatement User Fee Waived; for instances in which the feel can be waived:
    See IRM 5.19.1.5.4.3.(4)

  • "7" : DDIA Origination User Fee Due, $52, implemented January 2, 2007

  • "8" : DDIA Origination User Fee Paid

  • "9" : User Fee not applicable, fee does not apply to agreements input prior to March 16, 1995

  • "10" : Reduced Originator Fee on Original IA Due, $43.00 (Low Income TP)

  • "11" : Reduced Originator Fee on Original IA Paid, $43.00 (Low Income TP)

  • "12" : Reduced DDIA Fee Due, $43.00 (Low Income TP)

  • "13" : Reduced DDIA Fee Paid, $43.00 (Low Income TP)

Exhibit 5.19.1-12  (04-28-2008)
Questions and Answers to Assist in Financial Analysis

Question: If, as a condition of employment, a minister tithes, a business executive is required to contribute to a charity, or an employee is required to contribute to a pension plan, are these expenses allowed?

Answer: Yes. The only thing to consider is whether the amount contributed equals the amount actually required and does not include a voluntary portion.

Question: A taxpayer has a child in an expensive university; they already paid the university $25,000 for tuition and housing for the school year and intend to pay another $25,000 in July for the following school year. Is this expense allowed?

Answer: Yes, provided we can get a full pay within five years; otherwise, the expense is not allowed. The taxpayer may be eligible for an allowable expense to cover the child's enrollment at a local college provided the taxpayer provides substantiation for the expenses. The reduced education expense could make it possible for the taxpayer to take advantage of the five-year rule. Advise the taxpayer we expect an amount equal to the tuition. They are responsible for deciding what expense modifications or eliminations are needed to pay the tax liability. If the reduced education expense still does not result in full payment of the tax liability within five years, the expenses is not allowed.

Question: A taxpayer is starting the second year of a three-year lease for a luxury car with payments of $1,200 per month. Should the taxpayer be allowed this expense?

Answer: Yes, provided we can get a full pay within five years; otherwise, the taxpayer must justify the expense. There are some occupations requiring luxury cars. The type of car can also depend on the location. A real estate agent may drive a more expensive car if they work in a an affluent area or suburb, with very expensive homes, rather than in a middle class area. If the taxpayer could be expected to drive a more reasonably priced car, they should take steps to eliminate the expense. Ask the taxpayer what the penalty is to return the car to the dealer. If the penalty to cancel the contract costs the taxpayer more than continuing the contract, allow the taxpayer this expense and increase the payment amount when the contract expires.

Question: A taxpayer lives in an apartment renting for $2,000 per month with six months remaining on the lease. The lease agreement includes a termination penalty equal to the lesser of two months rent or the monthly rent due for the balance of the lease. The taxpayer has a $500 security deposit. Local rental data indicates an acceptable rental apartment in the same general neighborhood can be rented to house the family at a cost of $1,500 per month. The taxpayer cannot full pay within five years. Should the taxpayer be required to move to cheaper living quarters as a condition of an installment agreement?

Answer: Since breaking the lease would cost more than keeping it until expiration, an installment agreement may be written allowing the taxpayer to live in their present quarters for the balance of the lease, but requires an increase of $500 with the seventh month.

Question: A taxpayer is a commissioned salesperson living in a home with a $3,000 monthly mortgage payment. The property was purchased in 1989 at the peak of the local real estate market and has lost approximately 25% of its market value in the interim due to local market declines. The present value is approximately equal to the mortgage balance. A single family home of a size adequate to house the family is available in a middle class neighborhood convenient to work and schools for $1,800 per month, including utilities. If the taxpayer remains in their current home, income and expenses are approximately equal, leaving no disposable income to apply to the delinquent federal taxes. Should the account be reported Currently Not Collectible?

Answer: No. The difference between the cost of renting and owning indicates a significant payment can be made if the residence were sold. The loss of the taxpayer's equity is not the primary consideration. Advise the taxpayer they have up to one year to adjust their expenses so the Service then receives an amount equal to the excessive housing expense. Make an installment agreement for a lesser amount in the interim, with an increase in payment at the date the house is supposed to be sold. Manually monitor the case if it meets associated criteria:

See IRM 5.19.1.5.4.21.

Advise the taxpayer enforcement action may be taken at the end of a year if the installment agreement defaults for any reason, including failure to pay the required increase. If there is a default, the taxpayer must demonstrate a good faith effort was made to sell or borrow against the property.

Question: A taxpayer claims their cable television expense of $40 per month is a necessary expense because they live in a remote area where reception is poor. Should this expense be allowed?

Answer: Yes, provided we get a full pay within five years, but it is not a necessary expense. Also, the National Standards include an amount for miscellaneous expenses, which could cover this expense.

Question: A taxpayer claims they need more than the amount provided by the National Standards because they have five teenage children; can they get an increased amount?

Answer: Yes, provided they can fully pay the tax liability within five years; otherwise, they must substantiate and justify the food expense. The taxpayer is not required to verify expenses for all five categories under National Standards. The standard amounts are allowed for the remaining categories.

Question: A self-employed taxpayer with no other source of retirement income has an Individual Retirement Account (IRA); should payments to the IRA be allowed if it takes more than five years for them to fully pay the tax liability?

Answer: No. Advise the taxpayer to apply the amount going to the IRA to the tax liability, in addition to other identified disposable income. If the taxpayer wishes to continue making IRA payments, they must divert the money from allowed expenses.

Question: There is a balance due for a joint tax liability for a married couple; they submitted Form 433-F, Collection Information Statement. Our analysis indicates it will take a six-year installment agreement to fully pay the tax liability. The husband is a truck driver, responsible for his own food and lodging expenses on the road. He usually pays these as he travels with a credit card and he requests this monthly payment be allowed. Should we allow the expense?

Answer: First, we must determine if these are business expenses; if so, they should not appear on Form 433-F . The income appearing on Form 433-F should not reflect business expenses already deducted from business income to arrive at personal income. If they are not business expenses and it's determined they are necessary, they should be allowed subject to the National Standard amount for food. How they are paid, via cash or credit card, is not relevant. If the taxpayer must make minimum payments to keep his credit card active, advise him the payments should come from the amount allowed by the National Standards, which includes a miscellaneous amount. The monthly additions to the credit card should be fully paid from the amount allowed for the expense.

Question: A taxpayer completes a financial statement indicating they can fully pay the liability within five years. Since the assessment of the tax liability, they increased their expenses by buying a luxury car worth $35,000, for which they made a $12,000 down payment. He also moved from an apartment renting for $900 per month to one costing $2,000 per month. Should the provisions of the five-year or one-year rule apply?

Answer: If it appears he, although aware of the tax liability, committed part of his disposable income to excessive necessary or not-allowable conditional expenses, the Service is not obligated to allow the excessive expenses even though the liability could be fully paid within five years. It may be appropriate to inform the taxpayer for the Service to consider an agreement, they must pay immediately an amount equal to the down payment on the car and to pay, as part of an installment agreement, an amount equal to the increased monthly costs of housing and the car. This amount is in addition to their other disposable income.

Question: A taxpayer has a child in parochial school; should the taxpayer be allowed this expense?

Answer: Yes, provided we can get a full pay within five years; otherwise, the expense is allowed if for a physically or mentally challenged child and no public education providing similar services is available. If the expense is not included among allowable expenses, advise the taxpayer they are responsible for deciding what expense modification or eliminations are needed to pay the tax liability. If the school year is in progress, allow the expense through the current term or grade, then schedule an increase to the monthly payment when the school year concludes, typically in June.

Question: Due to budget constraints, a public school district begins charging fees for certain services, previously provided free. Is a taxpayer allowed the expense to pay these fees?

Answer: Yes, if the fees are required of all children in the school district. Fees for optional services, such as music lessons or sports equipment, are allowable provided the tax liability is paid within five years.

Question: An area has an arrangement with Consumer Credit Counseling Services (CCCS), in which CCCS submits installment agreement proposals on behalf of the taxpayer. Are such cases subject to the new allowable expense procedures?

Answer: Yes, unless the agreement falls under streamline installment agreement procedures. Any installment agreement in which financial analysis is required is subject to the new guidelines. The Service must share allowable expense procedures with CCCS.

Exhibit 5.19.1-13  (04-28-2008)
Internal Sources - Verify Financial Statement

  1. Verify as much of the financial statement as possible through internal sources.

  2. When internal locator services resources are not available, or indicate a discrepancy, request the taxpayer provide reasonable information necessary to support their financial statement.

  3. A full credit report is required on all Large Dollar CNC hardship and Installment Agreement, and Offer in Compromise cases; for additional information:
    See LEM 5.19.1.13

  4. Regardless of the amount of the liability, consider the following:

    Internal Sources Review
    ENMOD and INOLES Identify cross-reference TINs for related business activity not declared on the CIS
    SUMRY, IMFOL and BMFOL Verify full compliance
    RTVUE (IMF) or copy of the last filed return (1040) Compare the amount of reported income to that declared on the CIS
    Identify past sources of income including:
    Schedule A: Itemized Deductions, such as mortgage interest
    Schedule B: Interest and Dividends
    Schedule C: Self-employment income
    Schedule D: Capital Gains or Loses
    Schedule E: Rental or Other Investment Income, Net Operating Loss Deduction
    Schedule F: Farm Income
    Schedule K1: Partnership Income/Interest
    IRPTRO and/or copy of an older year income tax returns Compare real estate tax and mortgage interest deductions to the amount declared on the CIS
    Higher amounts may indicate present or past property ownership not declared on the CIS
    Lower amounts may indicate property was recently sold or transferred
    Identify accounts not reported on the CIS such as certificates of deposit, investment accounts, etc.
    Verify sources of income, such as employers, bank accounts, and retirement accounts
    Identify recently dissipated assets
    BRTVUE (BMF) or copy of the most recently filed income tax return (1120) Compare the amount of reported income to that declared on the CIS
    Compare the value of assets and the amount of reported depreciation to the asset values declared on the CIS
    The true value of an asset may not be shown on the depreciation schedules
    State Motor Vehicle Records Identify motor vehicles registered to the taxpayer, but not declared on the CIS

    Reminder:

    Check for ownership in business names or lien holders; ownership of a trailer may lead to assets such as boats or jet skis

    Real Estate Records Identify real property titled to the taxpayer, but not declared in the CIS
    Identify property held by transferee, nominee or alter ego

    Reminder:

    Check for ownership in business names or tax assessment records; check courthouse records for grantor/grantee, mechanic liens, state tax liens, divorce records, death certificates, registered wills, and Uniform Commercial Code (UCC) filings.

    Credit Bureau Reports Identify past residences and employers
    Verify competing lien holders, balances due, and payment history
    Identify property not listed on the CIS
    Identify other creditors as leads for undisclosed assets
    Asset and Locator Services Identify current real property, transferred property, or sold property
    Identify vehicle, vessel or aircraft ownership
    Identify interests in partnerships, corporations or other businesses
    Identify potential third parties residing with taxpayer

Exhibit 5.19.1-14  (04-28-2008)
External Sources - Verify Financial Statement

  1. Request appropriate documentation from the chart below to verify the CIS. Do not make a blanket request for information. Tailor your request to each taxpayer's specific situation. Do not require the taxpayer to provide information available from internal sources.

    Taxpayer Documentation Review
    Wage Earner: Wage statements for the prior three months; a statement with current year-to-date figures is also acceptable Compare average earning to the income declared on the CIS
    Verify adequate tax withholding
    Identify payroll deductions ensuring expense is necessary and not claimed again on the CIS
    Identify deductions to savings accounts, credit union accounts, or retirement accounts
    Self-employed: Proof of gross income for the preceding three months

    Example:

    Invoices, accounts receivable, commission statements, etc.

    		Compare average earnings to the income declared on the CIS
    Identify deductions ensuring the expense is necessary
    Bank statements, if required, for the quarter or year-to-date Compare deposit amounts to income reported on the tax return
    Cancelled checks and credit card statements for the last three months Verify the amount and frequency of declared expenses
    Identify unnecessary expenses
    Retirement account statements and brochures, brokerage account statements, securities, or other investments Identify the type, conditions for withdrawal, and current market value
    Life Insurance Policies Identify the type, conditions for borrowing or cancellation, and current loan and cash values
    Verify the amount of required premiums and whether they are being paid
    Motor vehicle purchase or lease contracts and statements from the lender indicating the payoff amount Verify equity and monthly payment expense
    Real estate, warranty deeds, mortgage deeds, HUD closing statements, statements from the lender indicating the payoff amount Identify the type of ownership, amount of equity, and monthly payment expense
    Homeowners or renters insurance policies and riders Compare the insured value to the value declared on the CIS
    Identify high value personal items such as jewelry, antiques or artwork
    Financial statements recently provided to lending institutions or others Compare the financial information submitted to others with that declared on the CIS
    Divorce Court orders Verify disposition of assets in the property settlement
    Court orders for child support and proof of payment Verify responsibility for child support and the payments are actually made

Exhibit 5.19.1-15  (04-28-2008)
IAAL Prioritization List

The Installment Agreement Account Listing IAAL is segmented into three Tiers based on processing deadlines:

  • Tier 1 must have 90% of cases completed within five working days

  • Tier 2 must have 70% of cases completed within five working days

  • Tier 3 has no age criteria

Tier 1 includes the following categories:

  • Defaulted (ST64)

  • Military Combat

  • Full Paid (restricted P&I Only)

  • Full Paid (Multiple Conditions)

  • Full Paid (All Others)

Tier 2 includes the following categories:

  • Originator Tracking Fee

  • Reinstatement Tracking Fee

  • Deferred Agreement Over One Year (ST63)

  • Suspended (ST61)

    Exception:

    June: 50% in ten business days

Tier 3 includes the following categories:

  • MFT 31

  • Review Agreements

  • Lien Determination

  • Litigation Module

  • TC 914 on Agreement

  • Account Transferred


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