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Part 5. Collecting Process

Chapter 1. General Collecting Procedures

Section 12. Cases Requiring Special Handling (Cont. 1)

5.1.12  Cases Requiring Special Handling (Cont. 1)

5.1.12.10 
Non-Petitioning Spouse

5.1.12.10.2  (05-20-2008)
Abatement of a Petitioning or Non-Petitioning Spouse's Liability

  1. Request abatement of the non-petitioning spouse's liability when you collect some or all of the liability from the petitioning spouse (and vice versa).

  2. Prepare Form 3870, Request for Adjustment, to request abatement.

  3. Follow the applicable procedures displayed in the table below to prepare the adjustment documents to request abatement.

    1. If Then
      Partial Abatement

      • enter "N" after the taxpayer’s Social Security Number,

      • attach a TXMOD from both spouse’s accounts,

      • attach a COMPA showing the amount of tax, penalties, and interest have been paid.

      Full Abatement

      • enter "N" after the taxpayer’s Social Security Number,

      • request STAUP STATUS 89,

      • request input of account into STATUS 12 when the abatement has been completed,

      • attach a TXMOD from both spouse’s accounts,

      • attach a COMPA showing that allthe tax, penalties, and interest have been paid.

5.1.12.10.3  (05-20-2008)
Additional Assessments to a Non-Petitioning Spouse’s Account

  1. Do not add additional assessments made as a result of a Tax Court decision to the non-petitioning spouse’s account.

  2. Consult Counsel if you have questions regarding the correct amount you should attempt to collect if a split-payment situation occurs.

  3. Prepare Form 3870, Request for Adjustment, to request any necessary adjustment.

  4. Attach a copy of the Tax Court decision to Form 3870.

5.1.12.11  (05-20-2008)
Child Support Obligation

  1. IRC § 6305,Collection of Certain Liability, provides for the assessment and collection of certified Child Support Obligations (CSO) in the same manner and with the same powers and limits (such as CSED) as if the amount was a tax imposed by Subtitle C (Employment Taxes). Certain exceptions apply.

  2. To meet code requirements, Cincinnati Submission Processing will hold an account in Notice Status for 60 days after issuing notice and demand in the case of a firstassessment against an individual.

  3. As new CSO certifications are received, but prior to assessing the liability, Cincinnati Submission Processing will send them to Campus Compliance Services (CCS) for review by a revenue officer.

  4. After assessing the liability, CSO BAL DUE cases will be assigned directly to Collection Field function (CFf).

  5. Upon issuance, CSO BAL DUE accounts are subject to immediate collection action by Collection Field function (CFf).

  6. BAL DUE accounts under this program will:

    1. reflect MFT 59, Tax Class 6

    2. bear the legend CSO, and

    3. include a copy of the certification sent to the revenue officer on a Form 3210, Document Transmittal, so that the pertinent information secured by the state agency will be available for revenue officer use.

  7. Since the CSO liability has been determined by a state court, the Service does not have abatement or compromise authority.

  8. In cases where a CFf employee determines that there is an obvious error in the CSO assessment or the taxpayer produces evidence that he/she paid the respective state after the CSO assessment was made, any required changes to the amount of liability must be initiated by the state of jurisdiction. To modify or cancel a previous application, the state must submit a Form OCSE 20, Application for the Collection of Delinquent Support Payments by the Internal Revenue Service, to the area Office of Child Support Enforcement (OCSE) office. In turn, the area OCSE office will send the amended Form OCSE 20 to the Internal Revenue Service.

5.1.12.11.1  (05-20-2008)
Collection Field function Review Prior to CSO Assessment

  1. Cincinnati Submission Processing may send new CSO certifications to Collection Field function (CFf) prior to assessing the liability as discussed above.

  2. Review any new CSO certifications you receive from Cincinnati Submission Processing.

  3. Take the following action:

    If Then
    the certification appears to be in order return it to Cincinnati Submission Processing for assessment.

    • Attach a copy of this IRM sub-section (IRM 5.1.12.11).
    the certification is not in order return it to the approving area official of the Office of Child Support Enforcement (OSCE), Department of Health and Human Services:

    • Attach a cover memorandum explaining the reason for rejection.

    • Send copies of the memorandum to Cincinnati Submission Processing and to the Campus Disclosure Officer for information purposes.

5.1.12.11.2  (05-20-2008)
Child Support Obligation Procedures

  1. Ensure the assignment of this type of case is appropriate for your grade level as these BAL DUE cases will not be generated with a predicted grade level.

    Note:

    Group managers will review the cases for level of difficulty and will assign the cases accordingly.

  2. Input TC 130, if it has not already been input, to put a freeze on any refund(s).

  3. Review all the state information forwarded with the certification.

  4. Follow normal field collection procedures in the collection of CSO BAL DUE cases subject to these exceptions:

    1. Do notcharge interest or penalties. See Treasury Regulation 301.6305-1(a).

      Exception:

      The penalty under IRC section 6657 for bad checks and the penalty under section 6332(c)(2) for failure to surrender property subject to levy may be imposed.

    2. Do not request waiver of a CSED. Instead, the child support agency must recertify the liability, which begins a new ten year period for collection.

    3. Do notlevy upon salary, wages or other income being withheld pursuant to a judgment for the support of minor children.

    4. Do not apply IRC § 6334(a) ,Property Exempt from Levy, with respect to unemployment benefits and certain annuity and pension payments to CSO liabilities.

      Note:

      See 5.11.1.2.2.10, Issuing Notice of Intent to Levy for Child Support Obligation BAL DUEs, for further guidance.

    5. Donot abate or compromise a CSO liability. However, you may agree to an installment agreement with the taxpayer.

  5. Become familiar with the guidance in this subsection prior to making taxpayer contact.

  6. Make contact with the taxpayer.

  7. Demand full payment.

  8. Make a collection determination:

    1. determine the maximum collection potential as states are only to certify cases with good collection potential, and

    2. contact the state in cases where there does not appear to be good collection potential.

  9. Collect full payment.

  10. Take the following action, as applicable, if you do not collect full payment.

    1. Schedule a mandatory review when reporting a CSO BAL DUE currently not collectible for follow-up at intervals of no less than two years (unless the circumstances of a particular case indicate that such a review is unwarranted).

    2. Handle the account as a NMF installment agreement if you establish an installment agreement for regular payments. See IRM 5.14 , INSTALLMENT AGREEMENTS.

  11. Follow the procedures below if you need to make contact with the OCSE area representative or the state representative listed on the certification.

5.1.12.11.2.1  (05-20-2008)
Contact with the State on a Child Support Obligation

  1. Contact the OCSE area representative whose name and telephone number are shown on the certification when it is necessary to discuss the case because:

    • a CSO case has been in your inventory for 90 days,

    • there is an obvious error in the assessment or the taxpayer produces evidence that he/she paid the respective state after the assessment was made, or

    • you need to contact the state because the case does not appear to have good collection potential,

    • the state intervenes after the case has been certified to Collection (i.e., subsequent state court action, etc.),

    • you need to transfer a CSO account.

  2. Donot make inappropriate disclosures of taxpayer information.

  3. Refer to IRM 11.3.33, Other Disclosures to State and Local Governments,for guidance.

    Caution:

    Exercise care so that you disclose nothing more than CSO information.

  4. Prepare a brief narrative report in memorandum format when a phone call does not resolve an issue:

    1. outline the present status of the case, and

    2. define any issues.

  5. Route the memorandum as follows:

    1. original — to the state — through the Area Disclosure Officer for review and mailing, and

    2. copy — to the Area Director's office — through your group manager and territory manager.

    Note:

    Your Area office will retain a copy of this report for possible review by Headquarters.

  6. Prepare Form 5482, Record of Disclosure, the first time you send a report to the state child support agency.

    Note:

    You do notneed to complete a record of disclosure every time you contact a state child support agency.

    Note:

    See IRM 11.3.19.3, Form 5482 Procedure.

5.1.12.11.2.1.1  (05-20-2008)
CSO Case in Inventory over 90 Days

  1. Prepare a brief narrative report in memorandum format outlining the present status of the case after a CSO case has been in your inventory for 90 days.

  2. Follow the steps listed above in IRM 5.1.12.11.2.1 , Contact with the State on a Child Support Obligation , regarding preparing and routing your report and preparing Form 5482 when you need to make a written report.

5.1.12.11.2.1.2  (05-20-2008)
Obvious Error in CSO Assessment or Paid CSO Assessment

  1. Follow these procedures after you make contact with the taxpayerifyou determine that there is an obvious error in the CSO assessment or the taxpayer produces evidence that he/she paid the respective state after the CSO assessment was made:

    1. cease further collection action,

    2. contact the area OCSE representative whose name and telephone number are listed on the certification.

  2. Contact the state representative whose name and telephone number also appear on the certificationifyou were not able to resolve the problem with the area OCSE representative.

  3. Follow the steps listed above in IRM 5.1.12.11.2.1 , Contact with the State on a Child Support Obligation , regarding preparing and routing a report and preparing Form 5482 when you need to make a written report.

5.1.12.11.2.1.3  (05-20-2008)
Case without Good Collection Potential

  1. Follow these procedures after you make contact with the taxpayerifyou determine that the case does not appear to have good collection potential:

    1. contact the area OCSE representative whose name and telephone number are listed on the certification, and

    2. determine if they can provide additional asset or income information.

  2. Follow the steps listed above in IRM 5.1.12.11.2.1 , Contact with the State on a Child Support Obligation , regarding preparing and routing a report and preparing Form 5482 when you need to make a written report.

5.1.12.11.2.1.4  (05-20-2008)
State Intervention after CSO Certification

  1. Follow these procedures ifthe state intervenes after the case has been certified to Collection (i.e., subsequent state court action, etc.):

    1. handle any request for state contact on a CSO BAL DUE assigned to you,

    2. contact the area OCSE representative whose name and telephone number are listed on the certification

    3. determine what the issue is, and

    4. try to resolve the problem.

  2. Follow the steps listed above in IRM 5.1.12.11.2.1 , Contact with the State on a Child Support Obligation , regarding preparing and routing a report and preparing Form 5482 when you need to make a written report.

5.1.12.11.2.1.5  (05-20-2008)
Transferring a CSO Account

  1. Follow these procedures to transfer a CSO account:

    1. follow procedures for the transfer of NMF cases, and

    2. prepare a memorandum notifying the area OCSE official of the transfer of the case.

  2. Follow the steps listed above in IRM 5.1.12.11.2.1 , Contact with the State on a Child Support Obligation , regarding preparing and routing a report and preparing Form 5482 when you need to make a written report.

5.1.12.12  (05-20-2008)
Taxpayers Exempt from Taxation for Religious Reasons

  1. Taxpayers can request exemption from some forms of federal taxation for religious reasons. A taxpayer can request exemption from taxation by filing one of two forms, either:

    • Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or

    • Form 4029, Application for Exemption From Social Security Taxes and Waiver of Benefits.

  2. Refer to IRM 4.19.6, SSA Correspondence, Minister Waivers, and Applications for Exemption from Social Security and Medicare. Sections 3 and 4 provide the actions the IRS takes to process these requests for exemption.

  3. Refer to Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, for more detailed information about Form 4361 and Form 4029 exemptions.

  4. See IRM 5.1.8.7.4, Exemption from Self-Employment Taxes, for procedures to follow when you receive a courtesy investigation on a religious exemption case.

5.1.12.12.1  (05-20-2008)
Form 4361 Exemption from Self-Employment Tax

  1. Form 4361 is submitted to apply for an exemption from self-employment tax by:

    • a duly ordained, commissioned, or licensed minister of a church or a member of a religious order (other than a member of a religious order who has taken a vow of poverty as a member of such order), or

    • a Christian Science practitioner who, for reasons of either conscience or religious principles, is opposed to the acceptance (with respect to services performed in his or her capacity as a minister, member of a religious order not under a vow of poverty, or Christian Science practitioner) of any public insurance which makes payments in the event of death, disability, old age, or retirement, or makes payments toward the cost of, or provides services for, medical care (including the benefits of any insurance system established by the Social Security Act).

5.1.12.12.2  (05-20-2008)
Form 4029 Exemption from Social Security and Medicare Taxes

  1. Form 4029is submitted by members of recognized religious groups to apply for an exemption from Social Security and Medicare taxes. Form 4029is first filed with the Social Security Administration (SSA), which determines whether the religious sect or division meets requirements for exemption from Social Security taxes. SSA then forwards Form 4029 to the Philadelphia Campus (the centralized Internal Revenue Service processing site for these forms) which is responsible for ensuring that:

    • the taxpayer is a member of the sect or division, and

    • the taxpayer waived all benefits and other payments under Titles II and XVIII of the Social Security Act.

    Note:

    The exemption does not apply to federal income tax.

5.1.12.12.3  (05-20-2008)
IDRS Religious Exemption Indicators

  1. A taxpayer can claim exemption from self-employment tax because he/she is either:

    • a Minister,

    • a member of a religious order, or

    • a Christian Science practitioner.

  2. A taxpayer can claim exemption from Social Security and Medicare taxes because he/she is:

    • a member of a sect or division that waived all benefits and other payments under Titles II and XVIII of the Social Security Act.

  3. IDRS should reflect an indicator if the taxpayer is exempt from:

    • Social Security and Medicare taxes, or

    • self-employment tax.

  4. The indicator should reflect if the application was approved or denied.

    Note:

    Some of the indicators have dropped off of the master file without reason during 2007 and 2008, so the retained copies of these forms are being scanned and input to a data base established for the Philadelphia Minister Waiver Program. Once all of the retained copies of the forms have been scanned, the entities will be run against the master file to ensure all of the indicators are once again present on master file.

  5. CC IMFOLE displays the Ministerial SE Code. The display will show whether or not the taxpayer has filed for an exemption. It shows the "output code" as the "MINISTER SE CD." IMFOLE will display one of the following possible values:

    • 1 = Form 4361 Approved

    • 2 = Form 4361 Denied

    • 3 = Form 2031 Processed

    • 4 = Form 4029 Approved

    • 8 = Form 4029 Denied

    Note:

    The Form 2031, Waiver Certificate For Use By Ministers, Certain Members of Religious Orders, and Christian Science, indicator will remain on IDRS even though the form is now obsolete. This form will be reactivated for use if Congress passes a law for a specific period of time to allow people to opt out of their prior designation of tax exempt. Congress has done this several times:
    The Tax Relief Extension Act of 1999, Public Law 106–170 provided a limited period, during which ministers, certain members of religious orders, and Christian Science practitioners, who had an approved Form 4361 in place for tax year 1999, could file Form 2031, Waiver Certificate For Use By Ministers, Certain Members of Religious Orders, and Christian Science. This was an irrevocable election back into Social Security coverage for their ministerial earnings. This opportunity did notapply to Form 4029 filers.
    Congress provided a similar limited time waiver for ministers as a part of the Tax Reform Act of 1986 for tax years 1986 and 1987. Form 2031 was also used for this period.

5.1.12.12.4  (05-20-2008)
Religious Exemption Procedures

  1. Check for an indicator on IDRS to confirm that the taxpayer has received approval for exemptionif a taxpayer states he/she is:

    1. exempt from Social Security and Medicare taxes, or

    2. exempt from self-employment tax.

  2. Find the Ministerial SE Code using CC IMFOLE to determine whether or not the taxpayer has filed for an exemption. It shows the "output code" as the "MINISTER SE CD. " Check the value displayed on IMFOLE:

    • 1 = Form 4361 Approved

    • 2 = Form 4361 Denied

    • 3 = Form 2031 Processed

    • 4 = Form 4029 Approved

    • 8 = Form 4029 Denied

    Reminder:

    The Form 2031 indicator will remain on IDRS even though the form is now obsolete.

5.1.12.12.4.1  (05-20-2008)
Indicator is on IDRS

  1. Remember the following ifan indicator is present:

    • An approved exemption only applies to earnings received for qualified services; it does not apply to any other SE income.

    • The exemption does not apply to federal income tax.

  2. Proceed with collectionifthe taxpayer owes some federal taxes or federal tax returns for which he/she is not exempt.

5.1.12.12.4.2  (05-20-2008)
Indicator is not on IDRS

  1. Check IDRS for an indicator.

  2. Request that taxpayer provide an approved copy of his/her applicationif the indicator is not presentand the taxpayer claims they received an exemption.

  3. Request the taxpayer to prepare either a Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or Form 4029, Application for Exemption From Social Security Taxes and Waiver of Benefits, to request the appropriate exemption if the taxpayer doesnot provide an approved copy of his/her application.

  4. Obtain a completed Form 4361 or Form 4029 as applicable. Obtain the appropriate form in triplicate (an original and two copies).

5.1.12.12.4.2.1  (05-20-2008)
Form 4361

  1. Send the original and two copies of the Form 4361 to the Philadelphia Campus Minister Waiver Unit. Philadelphia Campus P.O. Box 16325 Philadelphia, PA 19114-0425 Attn: DP S849 Minister Waiver Processing

  2. Inform the taxpayer that after the IRS has reviewed Form 4361 and has made a determination, the IRS will return a copy of the Form 4361 to the taxpayer to inform him/her whether or not his/her exemption has been approved.

  3. If the copy of the Form 4361 was notapproved, the taxpayer is notexempt and is liable for all applicable taxes.

    Note:

    If the application was denied due to the lack of specific information, consider allowing the taxpayer to resubmit Form 4361. Be sure the taxpayer includesall required information that was lacking from the original submission.

  4. Proceed with collectionifthe taxpayer is not exempt.

5.1.12.12.4.2.2  (05-20-2008)
Form 4029

  1. Send the Form 4029, the original and two copies, by mail to the SSA address in the Form 4029 instructions.

  2. Inform the taxpayer that before he/she will be notified by the IRS whether or not exempt status has been accepted:

    • SSA has to process Form 4029, and

    • IRS has to review Form 4029.

  3. The Commissioner of Social Security must determine that:

    • the sect or division has the established teachings discussed above,

    • it is the practice, and has been for a substantial period of time, for members of the sect or division to provide for their dependent members in a manner that is reasonable in view of the members' general level of living, and

    • the sect or division has existed at all times since December 31, 1950.

  4. If the copy of the Form 4029 was not approved, the taxpayer is notexempt and is liable for all applicable taxes.

    Note:

    If the application was denied due to the lack of specific information, consider allowing the taxpayer to resubmit Form 4029. Be sure the taxpayer includesall required information that was lacking from the original submission.

  5. Proceed with collectionifthe taxpayer is not exempt.

5.1.12.12.5  (05-20-2008)
Enforced Collection Action in Religious Exemption Cases

  1. Attempt to secure voluntary paymentif the taxpayer:

    1. does not have an approved form, and/or

    2. does notfile the appropriate form with you when requested to do so.

  2. Take any necessary enforced collection action within the limitations of IRM 5.11, Notice of Levy ,if you donotsecure voluntary payment.

5.1.12.13  (05-20-2008)
Insolvent Financial Institutions — Provisions of the IRS-RTC/FDIC Agreement

  1. The Service has an agreement with the Resolution Trust Corporation (RTC) regarding liabilities of financial institutions under RTC control. The Federal Deposit Insurance Corporation (FDIC) is the successor to RTC in this agreement.

  2. This agreement provides that the Service will not pursue collection of income tax liabilities of the institution if the RTC/FDIC certifies that payment would ultimately increase the Treasury funds needed to pay depositors. This provision applies to:

    1. liabilities of the institution and its subsidiaries filing a consolidated return with it;

    2. the institution’s liability for a parent’s consolidated income tax.

  3. The agreement does not affect collection from other assets of the parent or its non-RTC/FDIC controlled subsidiaries.

  4. The agreement does not affect collection from institutions under control for which certification cannot be provided under the original RTC/IRS interagency agreement.

5.1.12.13.1  (05-20-2008)
Insolvent Financial Institutions — IRS-RTC/FDIC Agreement Procedures

  1. Contact Advisory to ensure they are aware of the proceeding if you become aware of RTC/FDIC involvement with a taxpayer. Provide any additional information requested by Advisory.

  2. Review the following IRM sections as appropriate before taking any other action on these cases:

    1. IRM 5.12, Liens, before filing a notice of lien

    2. IRM 5.11, Notice of Levy , before issuing a levy

5.1.12.14  (05-20-2008)
Foreign Insurance Company

  1. The Internal Revenue Service occasionally enters into agreements with foreign insurance companies. One of the conditions of these agreements is that the insurance company provide a clean, irrevocable letter of credit to be held by the Area Director.

  2. Determine if a letter of credit is being held when you receive a BAL DUE on Form 720, Quarterly Federal Excise Tax Return, for a foreign insurance company with abstract number 30.

  3. Contact the Advisory, Insolvency & Quality (AIQ) Foreign Insurance Companies contact to help you make the determination and assist in the resolution of any BAL DUE/DEL RET issues.

    1. Find the contact information for the Foreign Insurance Companies contact on the IRWeb under the Collection Home Page under the Advisory Program Contacts page by clicking on the Foreign Insurance Companies link.

    2. Click on this link to take you directly to the Foreign Insurance Companies page: http://sbse.web.irs.gov/Collection/AdvProg/list.aspx?program=Foreign%20Insurance%20Companies

5.1.12.15  (05-20-2008)
Political Activity

  1. IRC § 527 discusses political activity. Public Law 93–625 established filing requirements for political organizations (committees, party, fund, etc.) for tax years beginning January 1, 1975.

  2. A political organization, whether or not it is tax-exempt, must file Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations if it has any political organization taxable income.

    Note:

    An exempt organization that is nota political organization must file Form 1120-POL if it is treated as having political organization taxable income under IRC § 527(f)(1).

  3. Political organization taxable income (line 19) is the excess of:

    1. gross income for the tax year (excluding exempt function income (defined below)) over

    2. deductions directly connected with the earning of gross income (excluding exempt function income).

  4. IRC § 527(c)(2)(C) defines political organization taxable income. Taxable income is figured with the following adjustments:

    1. A specific deduction of $100 is allowed (but not for newsletter funds),

    2. The net operating loss deduction is not allowed, and

    3. The dividends-received deduction and other special deductions for corporations are not allowed.

  5. Frequently, political organizations establish temporary entities during political campaigns. Computer Condition Code "G" identifies entities that are political organizations by MFT 02 with a filing requirement 9.

5.1.12.15.1  (05-20-2008)
Procedures for "G" Coded Political Activity Taxpayers

  1. Conduct a full compliance check on all "G" coded taxpayers.

  2. Recognize a "G" coded BMF taxpayer by TC 976.

    Note:

    The "G" code is placed on a return (by a campus employee during return processing) to indicate that the return is an amended, corrected, supplemental, tentative, or revised return. TC 976 is generated to replace a "G" coded TC 150 on the BMF. The"G" code applies to all BMF returns except setting of a freeze on Form 1065. The"G" code also applies to EPMF and IRAF. See Doc 6209 for more information.

  3. Review "G" coded accounts carefully for transferee situations.

    1. Pay particular attention to periods not reflected on the "G" coded account.

    2. Be alert for transferee situations.

  4. Process "G" coded accounts routinely in the absence of transferee situations.

5.1.12.16  (05-20-2008)
Criminal Probation

  1. Following conviction for a criminal tax violation, the taxpayer will be sentenced. The sentence may include probation with specific conditions to be met by the taxpayer during a specified time period.

  2. For procedures relating to probation cases, see IRM 5.1.5.13, Civil Liability Collection - Probation Cases.

5.1.12.17  (05-20-2008)
Math or Clerical Error

  1. Returns filed with math or clerical errors are usually corrected at the campus before notice and BAL DUE issuance, but sometimes a BAL DUE is issued before the error is resolved.

  2. The campus will input Freeze Code "G," on returns filed with math or clerical errors.

  3. Freeze Code "G" :

    • allows first notice issuance, and

    • suspends the account for 12 cycles.

  4. The 12-cycle suspense period is known as the "appeal period " .

  5. The campus will issue notices and a BAL DUE after the appeal period if:

    • the taxpayer responds within appeal period and agrees with the assessment, or

    • the taxpayer does not respond within appeal period.

  6. The campus will input TC 470 CC 94 "Claim Pending" if the taxpayer responds within the appeal period and does not agree with the assessment.

    Note:

    TC 470 CC 94 extends the appeal period with Freeze Code "J" .

  7. The campus will input TC 470 CC 94 "Claim Pending" if the taxpayer responds after the appeal period and does not agree with the assessment.

  8. The campus will abate the tax with TC 291:

    • if the taxpayer's claim isjustified the campus will issue a notice(s) and a BAL DUE(s) for that(those) module(s).

    • if the taxpayer’s claim is not justified the campus will refer the case to Examination.

  9. The campus will freeze any existing credit while Examination works the case.

    Exception:

    Exempt organization returns are an exception, so any existing credit is not frozen.

    Note:

    The campus will issue notices and BAL DUE for any module not affected by the claim.

  10. Refer to IRM 5.1.15, Abatements, Reconsiderations and Adjustments.

  11. TC 470 CC 90 is used for abatements, adjustments, and complicated payment tracers. TC 470 CC 90: