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Part 5. Collecting Process

Chapter 4. Case Processing

Section 11. CCP Installment Agreements

5.4.11  CCP Installment Agreements

5.4.11.1  (05-06-2008)
Overview

  1. Installment Agreements (IA) are arrangements whereby the Internal Revenue Service allows taxpayers to pay liabilities over time. If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, Partial Payment Installment Agreements (PPIA) may be granted. During the course of agreements, penalty and interest continue to accrue. No levies may be served during installment agreements.

  2. The Integrated Data Retrieval System (IDRS) is used to monitor most Installment agreements for timely payments on accounts, as well as to determine whether taxpayers remain in compliance with current filing and paying requirements. IDRS also monitors agreements based on the locator numbers recorded at the time agreements are input IRM 5.14.1–2. Some agreements require special monitoring, such as when accounts reside on the Non-Masterfile (NMF) or if payment amounts are varied. These accounts must be manually monitored.

  3. This chapter provides procedures for monitoring installment agreements for Business Masterfile (BMF) accounts including In-Business Trust Fund (IBTF) balance dues by Centralized Case Processing (CCP). Many of these accounts involve in-business payroll tax accounts, and/or large dollar accounts. See IRM 5.14.7.

5.4.11.2  (05-06-2008)
Types of Installment Agreements

  1. When taxpayers are unable to pay a liability in full, an installment agreement (IA) will be considered.

  2. Taxpayers with individual income tax liabilities of $10,000 or less (exclusive of penalties and interest) may be guaranteed an IA. Taxpayers with liabilities of $25,000 or less, may qualify for Streamlined Agreements. See IRM 5.14.5.2 and IRM 5.14.5.3, Guaranteed and Streamlined Installment Agreements.

  3. There are various types of Installment Agreements that may be granted to taxpayers:

    1. Guaranteed Installment Agreement – Taxpayers with Individual income tax liabilities of $10,000 or less (exclusive of penalties and interest). See IRM 5.14.5.3.

    2. Streamline Installment Agreements – Taxpayers with liabilities of $25,000 or less. See IRM 5.14.5.2.

    3. In-Business Trust Fund Express Installment Agreements; See IRM 5.14.5.4.

    4. Direct Debit Installment Agreements; See IRM 5.4.10.4.

    5. Payroll Deduction Installment Agreements; See IRM 5.4.10.2.

5.4.11.3  (05-06-2008)
Method of Payments

  1. There are various methods for making monthly installment agreement payments:

    1. Electronic Federal Tax Payment System (EFTPS); Taxpayers will select the "payment-due with IRS notice" payment type for posting to Masterfile with a TC 670. EFTPS has the ability to schedule payments up to 12 months in advance for individual taxpayers and up to 4 months in advance for business taxpayers. The taxpayer must initiate payments by sending instructions to EFTPS. See IRM 5.14.1.2.

    2. Direct Debit Installment Agreements (DDIA); If the taxpayer maintains a checking account, encourage them to take advantage of the DDIA. See IRM 5.14.10.4.

    3. Payroll Deduction Installment Agreements (PPIA); If the taxpayer will not agree to a DDIA encourage them to take advantage of a PPIA. See IRM 5.14.10.2.

    4. Credit Card Installment Agreement payments. See IRM 5.14.1.2.

    5. Payment by check or money order. If payments are made by check, they should be payable to: United States Treasury Department. However, checks made out to "Internal Revenue Service" or "IRS" will be processed.

  2. See IRM 5.14.7, regarding designation of payments during installment agreements.

  3. There is an Installment Agreement User Fee. The fee is $105 for installment agreements entered into on or after January 1, 2007, except that the fee is $52 when the taxpayer pays by way of a direct debit from the taxpayer's bank account. No matter the method of payment, the user fee is $43 if the taxpayer is a low income taxpayer. The fee for restructuring or reinstating an installment agreement on or after January 1, 2007, is $45. IRM 5.19.1.5.

5.4.11.4  (05-06-2008)
Installment Agreement Proposals Received in Centralized Case Processing

  1. Proposals to enter into installment agreements may result from letters, phone contacts, voice-mail, e-mail, or other communications between taxpayers and Centralized Case Processing (CCP). If proposals to enter into installment agreements are received by e-mail, do not respond by e-mail, contact the manager. The manager will determine if a telephone call is appropriate. E-mail responses violate the IRS Security Policy. In addition, do not solicit e-mails from taxpayers regarding installment agreements, or other tax collection or examination issues. All taxpayers have the right to request installment agreements.

  2. Requests for installment agreements, including those on unassessed modules, will be referred to the function assigned to the taxpayer's case.

  3. Check IDRS for case assignment. If case is in status 22, 24, or 26 and not assigned to Collection Field function (CFf) or CCP, refer taxpayer to the general toll free number.

  4. If case is assigned to CFf, refer taxpayer to the revenue officer that is assigned to the case.

  5. If case is assigned to CCP, transfer the phone call or do a referral to the Field Office Resource Team (FORT).

5.4.11.5  (05-06-2008)
Processing Guaranteed, Streamline and In-Business Express Installment Agreements

  1. Installment Agreement (IA) requests will be received in Centralized Case Processing (CCP) for input from the Collection Field function (CFf) on a Form 433D, Installment Agreement Request, by mail or electronically via e-mail.

  2. The CCP manager has 5 business days to assign the cases to a tax examiner for input.

  3. The CCP tax examiner will input the IA within 14 business days from the CCP receive date.

  4. The tax examiner will verify the information on the Form 433D to include:

    1. Taxpayer name

    2. Taxpayer Identification Number (TIN)

    3. Secondary or cross reference TIN

    4. Taxpayer address

    5. Taxpayer telephone number(s)

    6. Levy source

    7. Area designation

    8. Business unit designation

  5. If information is missing or incomplete, check IDRS and or ICS for updated information. If unable to obtain necessary information for input, reject the Form 433D to the originator with a Form 3210.

  6. See IRM 5.19.1–6for IDRS input of Installment Agreements.

5.4.11.6  (05-06-2008)
Collection Statute Expiration Date (CSED) and Partial Payment Installment Agreements (PPIA)

  1. The American Jobs Creation Act of 2004 amended Internal Revenue Code IRC 6159to provide the authority for the Service to enter into partial payment installment agreements (i.e. installment agreements that do not provide for full payment of the liabilities within the statutory period for collection). See IRM 5.4.11.7.1.

  2. IRC 6502(a)provides that statutory periods for collection may be extended in connection with granting installment agreements. It is the policy of the Internal Revenue Service that CSED extensions are permitted only in conjunction with Partial Payment Installment Agreements and only in certain situations. See IRM 5.14.2.1and IRM 5.14.2.2.

5.4.11.6.1  (05-06-2008)
CSED Information: Form 900 Waiver Processing in Centralized Case Processing

  1. Collection Statute Expiration Date (CSED) waivers are not secured on non-PPIA agreements. Generally, they are not secured on PPIAs; however, a waiver may be considered in certain situations. See IRM 5.14.2.1.

  2. Form 900Waivers are processed in the General Case Processing (GCP). See IRM 5.4.10.9.

  3. If a waiver is secured, Part 4 of Form 900 waiver is retained in the revenue officer’s case file. Centralized Case Processing (CCP) must verify:

    1. The extension dates are the same on Form 900 and IDRS.

    2. Verify that the TC 550 is present on the module(s) on IDRS, if not, then input a TC 550. See IRM 5.4.10.8. Generally, TC 550's are uploaded through ICS.

5.4.11.6.2  (05-06-2008)
CSED Expiration Legal Reference: 90 Day Rule for Installment Agreement CSED Extension and Non-Installment Agreement CSEDs

  1. Collection of tax by levy or by suit made in conjunction with a waiver secured with an installment agreement must commence no later than the 89th day following the end of the suspension period specified in writing by the secretary and the taxpayer at the time the installment agreement was entered into. See IRC 6502(a)(2)(A). These waivers remain in effect regardless of:

    • whether agreements fully pay taxes; and,

    • length of extensions

  2. For CSED extensions/waivers secured on or before December 31, 1999, the statutory period for collection will expire Dec. 31, 2002 or at the end of the original ten year statutory period for collection if after December 31, 2002. IRC 6502(a).

  3. For an extensive discussion of the law, policy and procedures of the CSED and PPIA's, see IRM 5.14.2.2; IRM 5.14.2.2.3and Exhibits in IRM 5.14.2-1.

5.4.11.7  (05-06-2008)
Partial Payment Installment Agreements (PPIA)

  1. All taxpayers are expected to full pay delinquent tax liabilities. When this is not possible, taxpayers may be allowed to pay their liabilities over a prescribed period of time. If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, the Service can grant Partial Payment Installment Agreements (PPIAs). The American Jobs Creation Act of 2004 amended IRC § 6159 to provide this authority

5.4.11.7.1  (05-06-2008)
Processing Partial Payment Installment Agreements

  1. After approval of the Partial Payment Installment Agreement (PPIA) by the field group manager, a systemic Other Investigation (OI) will be generated on the Integrated Collection System (ICS) and assigned to Centralized Case Processing (CCP).

  2. If the case is an In-Business Trust Fund (IBTF) installment agreement PPIA, two (2) systemic OI's will be generated and assigned to CCP, one for monitoring of the case and one for the PPIA 2-year review.

  3. CCP receives the case file from the field group with the Installment Agreement Form, Form 433Dmarked at the top in red as "PPIA" .

  4. Each Form 433D, Installment Agreement Request, should contain the Agreement Locator Number (ALN), a four digit code (XXYY) that indicates the specific type of processing and the Review Suppress Indicators (RSI) instructing CCP to reissue installments agreements under certain conditions after the two year review.

  5. Upon receipt of the case, CCP will do the following:

    1. Ensure the taxpayer is in compliance with filing, withholding, federal tax deposit and estimated tax payment requirements. If the taxpayer is not in compliance, document ICS case history and reject case back to originator. See IRM 5.4.11.8.

    2. Verify the proper ALN for PPIAs as follows:
      ALN "12" in the "YY" position of the ALN;
      "02" in the "XX" position unless one of the conditions in IRM 5.14.1–2or in the chart below, are present;
      "12" in the "XX" position of the ALN for multiple condition PPIAs (see table below for exceptions, including for Direct Debit and Payroll Deduction Agreements.)

      Type of PPIA ALN Required IDRS History
      PPIA with no other conditions 0212 None
      PPIA with Unassessed module 1212

      Note:

      Turn the Assessment Indicator " ON"

      		Enter UM-MFT-Tax Period, for example: UM30200412 for MFT 30 tax period 200412.
      Direct Debit PPIA 0312

      Note:

      "03" must be used for all direct debit IA's. Even if other conditions exist. Input other conditions as IDRS histories.

      		DIRECT DEBIT
      Payroll Deduction PPIA 1122

      Note:

      "11" must be used for all payroll deduction IA's. Even if other conditions exist. Input other conditions as IDRS histories.

      		PDIA
      Currently Not Collectable if PPIA defaults 1212

      Note:

      Ensure IDRS history is input because the CNC ALN default "53" cannot be input on a PPIA.

      		PPIA/CNCXX (XX = TC 530 action code for TPI reactivation)

      Note:

      Use as many IDRS history entries as necessary on PPIA's with multiple conditions.

      EXAMPLE: For PPIA's that are direct debit and will be reported uncollectable on default, use ALN 0312 and IDRS history entries: "DIRECT DEBIT, CNC ON DEFAULT" .

    3. CCP will verify the following Sub-Codes for monitoring:
      • 900 – In-Business Installment Agreements (IBTF-IA) Partial Payment Installment Agreements (PPIA) that requires monitoring. This is systemic when a case is closed as an IBTF in ICS and a NF OI created for CCP.
      • 901 – Manually Monitored Installment Agreements (MMIA) Partial Payment Agreements (PPIA) that requires monitoring. This is systemic on ICS when a case is closed as a MMIA.
      • 911 – Reserved for ALL BMF PPIA's that requires sending the CP 522P for the 2-Year Financial Review. These cases do not require monitoring by CCP.

    4. Input installment agreement information on IDRS to include the input of the ALN and RSI.

    5. Document ICS case history with appropriate follow-up date for monitoring the MMIA and IBTF-IA. ICS will automatically set the follow-up date for the 2-Year Financial Review.

5.4.11.7.2  (05-06-2008)
Two-Year Financial Review by Centralized Case Processing

  1. IRC 6159 requires Partial Payment Installment Agreements (PPIA) be reviewed every two years. Centralized Case Processing (CCP) performs the two year financial review on all BMF PPIAs and manually monitored (MMIA) PPIAs.

  2. When BMF PPIAs and MMIAs are closed on ICS, a non-field (NF) OI is systemically created on ICS and assigned to CCP. The category for the NF OI is " 101 – PPIA Monitor."

  3. IMF PPIAs will have a systemic two-year financial review performed based on TC 971 Action Code 174. Since the IMF PPIA financial reviews are conducted systemically, the financial reviews are not worked or controlled on ICS.

  4. The PPIA 2-Year review follow-up date determines if and when the Letter 522P should be mailed by CCP.

5.4.11.7.2.1  (05-06-2008)
Issuing the "Notice of Periodic Review of Your Current Installment Agreement" (522P)

  1. The PPIA Review Letter (522P) should be mailed to:

    1. MMIA-PPIA Individual (IMF) taxpayers, in which, CCP has determined the Total Positive Income (TPI) has increased by an amount that is equal to or greater (=>) than 6 percent during the two year period for which the review is being conducted.

      Note:

      Use command code RTVUE, to compare the TPI on the returns filed during the two year period for which the review is being conducted.


      Example: The taxpayer has filed all returns. Use command code RTVUE via IDRS, to compare the TPI for 30-200412 and 30-200512. The TPI for 30-200512 is => 6 percent of the TPI for 30-200412. The taxpayer is mailed a Letter 522P for a financial review.

    2. MMIA-IMF taxpayers when there is no TPI information available on RTVUE with which to determine if there has been an increase in TPI.
      Example: The taxpayer has filed all returns. Use command code RTVUE via IDRS, if a TPI is found for 30-200412 but there is no TPI for 30-200512 or the taxpayer has filed a return for 2004 but has not filed for 2005. The taxpayer is mailed a PPIA Review Letter (522P) for a financial review.

    3. All BMF-PPIA taxpayers.

    4. PPIA Review Letter (522P) will be systemically mailed to IMF-PPIA taxpayers whose financial reviews were conducted systemically.

      Note:

      If the TPI is less than 6 percent, the case remains a PPIA and no PPIA Review Letter ( 522P) is generated.

    5. If the TPI is less than 6 percent. The case remains a PPIA and no PPIA Review Letter (522P) is generated.

    6. Use Option B, Update PPIA review cycle under the Installment Agreement application on ICS.

    7. The review cycle defaults to two years from the current date. The user may edit, however the date selected cannot be greater than the default date.

    8. Option B; also updates the due date on the PPIA Monitor OI. The due date defaults to two years plus 60 days from the new cycle review date. The date can be edited by the user.

    9. A follow-up will be generated based on the PPIA review cycle date.

    10. A systemic history entry is generated.

    11. Use command code IADIS on IDRS to include the ALN and RSI.

    12. If there is a POA on file, send a copy of the PPIA Review Letter (522P) with copy of Letter 937, POA Cover Letter.

    Note:

    There is no POA processing on ICS for PPIA Review Letter (522P) since the letter does not list the modules on the IA. Use command code CFINK to verify POA information IDRS.

5.4.11.7.2.2  (05-06-2008)
Generating PPIA Review Letter (522P) via ICS

  1. Option J, Financial PPIA Review, is the option under the Installment Agreement Application for use by CCP while performing the two year financial review.

  2. When Option J is selected, three menu options will appear:

    • Generate PPIA Review Letter (522P)

    • Update PPIA Review Cycle

    • Update PPIA Asset Code

  3. Option A, Generate PPIA Review Letter (522P), is used to generate Letter 522. This is the letter sent to the taxpayer subject to the two-year financial review.

  4. Option B, Updates the PPIA Review Cycle, use this option after the financial review is completed and CCP has determined that there are no changes and the case should remain as a PPIA.

  5. Option C, Updates the PPIA Asset Code, is used when CCP determines the PPIA asset code needs to be updated.

  6. Use Option A, Generate PPIA Review Letter (522P) and mail to taxpayer.

  7. There must be an open PPIA Monitor OI to access Option A. If not, the following error message will be displayed: "No 101 PPIA Monitor OI is Present."

  8. ICS will systemically generate a 30 day follow-up from the date of the letter. The follow-up text will state "Follow-up PPIA Review Letter."

  9. A systemic history entry is generated on ICS.

5.4.11.7.2.3  (05-06-2008)
Taxpayer's Response to PPIA Review Letter (522P)

  1. Conducting the Financial Analysis;

    1. When contacted by a taxpayer by telephone, CCP must use authentication disclosure procedures in IRM 11.3.2.3, Disclosure to Persons with a Material Interest, Requirement for Verbal or Electronic Requests.

    2. CCP, when conducting the two-year review on IMF taxpayers, will complete the income and expense analysis on Form 433F, Collection Financial Statement via Desktop Integration (DI).

    3. For BMF taxpayers, CCP will complete the income and expense analysis as well as assets and equity on Form 433B, Collection Financial Statement for Businesses.

      Note:

      Complete the income and expense section of the 433B on ICS. The asset/equity portion will be completed on the paper Form 433B and the analysis in the ICS case history.

    4. Conditional expenses are not allowed for PPIAs. Only necessary expenses are permitted, IRM 5.14.2and IRM 5.15.1.7 to determine allowable expenses.

    5. CCP will use the most current available information from internal and external sources to verify the financial information provided by the taxpayer, i.e. IRPTR, RTVUE, etc.

    6. Update levy source.

  2. After conducting the financial analysis, CCP will determine if:

    1. The balance can be fully paid, or;

    2. An adjustment to the payment amount is necessary, or;

    3. An agreement should continue without change, or;

    4. If the taxpayer is unable to pay.

  3. If there is no significant change to the taxpayer’s financial situation and the agreement will continue:

    1. Use Option B, update PPIA review cycle via ICS.

    2. There must be an open PPIA Monitor OI to access this option. If not, the following error message will be displayed: "No 101 PPIA Monitor OI is present."

    3. The review cycle defaults to two years from the current date. The user may edit; however the date selected cannot be greater than the default date.

    4. Option B; also, update the due date on the PPIA Monitor OI. The due date defaults to two years plus 60 days from the new review cycle date. The date can be edited by the user.

    5. A new 2-year review follow-up will be generated based on the PPIA review cycle date.

    6. A systemic history entry will be generated on ICS.

    7. Notify the taxpayer that there is no change in the agreement.

  4. If the financial review indicates the taxpayers ability to pay an amount that is different from the existing agreement and the case remains a PPIA:

    1. Use Option B, Update the PPIA review cycle on ICS. The review cycle defaults to two years from the current date. The user may edit; however the date selected cannot be greater than the default date.

    2. Option B; also, update the due date on the PPIA Monitor OI. The due date defaults to two years plus 60 days from the new review cycle date. The date can be edited by the user.

    3. A follow-up will be generated based on the PPIA review cycle date.

    4. A systemic history entry will be generated.

    5. Update IADIS on IDRS with new amount and due date. No user fee is due on IA's revised through the PPIA 2 year financial review.

    6. Reset the 2-Year review date on IDRS.

    7. Use Option C, Update PPIA asset code, if it is determined that the PPIA asset code needs to be updated.

    8. There must be a PPIA installment agreement record on ICS in order to use Option C.

    9. If the installment agreement (IA) was not generated use Option A on ICS, the IA record will not be present and the following error message will be displayed: "No PPIA Installment Agreement Record Found." In these instances, use command code IAGRE for updating this code on IDRS.

    10. When Option C is selected, the following choice list will appear:
      0 - Not a PPIA
      1 – PPIA Asset
      2 - PPIA No Asset

    11. The existing PPIA asset code displays as the default. If the code selected matches the existing code in the IA record, the following error message will appear: "Asset indicator selected is same as current indicator – If this is correct, update not needed."

    12. A systemic history will be generated on ICS once the code has been updated.

  5. If the financial review indicates the taxpayer's ability to pay an amount that is different from the existing agreement and the case is no longer a PPIA but still an installment agreement that will pay within the CSED:

    1. Remove PPIA indicator on IDRS and update payment amount on IDRS.

    2. Use Option C, Update PPIA asset code to "0" – Not a PPIA.

    3. There must be a PPIA installment agreement record on ICS in order to use this option. If the IA was not generated with Option A on ICS, the IA record will not be present and the following error message will be displayed: "No PPIA Installment Agreement Record Found." In these instances, follow procedures for updating this code on IDRS.

    4. A systemic history will be generated on ICS once the code has been updated.

    5. Update ALN.

    6. Document ICS case history.

    7. Close PPIA NF OI on ICS. (See Defaulted PPIA).

  6. If financial review indicates that the taxpayer has the ability to full pay:

    1. Demand will be made for full payment.

    2. Set deadline for 30 days.

    3. Update IADIS for full payment.

    4. Update levy source.

    5. Document ICS or DI case history and IDRS TXMODA with follow-up date for payment.

    6. If deadline not met, manual default case on IDRS.

    7. Document ICS case history.

    8. Close PPIA Monitor OI (See Defaulted PPIA).

  7. If the financial review indicates the taxpayer does not have the ability to continue the installment agreement:

    1. Document ICS case history.

    2. Forward paper case to the Field Office Resource Team (FORT) for financial analysis and contact with taxpayer, if necessary.

    3. FORT will make appropriate determination for case resolution per IRM 5.16.1 Current Not Collectible (CNC).

    4. Document case history.

    5. After FORT review, close PPIA Monitor OI and send the case to closed files, if appropriate.

  8. If taxpayer current with payments but financial review indicates inability to pay:

    1. Prepare Form 53, Currently Not Collectible, with appropriate closing code based on financial analysis.

    2. Follow procedures for ‘Case remains a PPIA,’ See IRM 5.4.11.7.2. paragraph 4.

    3. Document ICS case history.

    4. Use command code ACTON on ENMODA to update IDRS.

  9. If taxpayer disagrees with the increase in the payment amount:

    1. Document case history on ICS or DI for IMF PPIA.

    2. Forward case to FORT for financial analysis and contact with taxpayer, if necessary, for case resolution (MMIA/IBTF PPIA case).

    3. Resolution (Default or Revised) completed within 15 days.

    4. Document case history with resolution.

  10. If taxpayer does not respond to PPIA Review Letter 522P:

    1. Document DI or ICS case history.

    2. For IBTF-PPIA - Manually default the case on IDRS using command code IADFL default category "PPIAFINRV."

    3. For MMIA-PPIA – Document TXMODA history, "Defaulted PPIA/FINRV."

    4. See IRM 5.4.11.9. for current default procedures.

    5. IMF-PPIA cases will systemically default.

  11. If CCP is unable to revise the agreement, terminate, re-input or take other actions necessary to resolve cases, the agreement will be forwarded as follows:

    1. ACS (0012) cases will be returned to ACS (status 22).

    2. Campus (0112) cases will be issued to ACS (status 22).

    3. Field (0212) no equity cases will be forwarded to ACS (status 22).

    4. Field asset cases will be forwarded to the field pursuant to zip code.

5.4.11.7.3  (05-06-2008)
Partial Payment Installment Agreement Default and Termination Procedures

  1. Only PPIAs that originated in the field as asset cases may be returned to the field.

  2. All defaulted SBSE Field Asset PPIAs will be systemically assigned on ICS to the appropriate group hold file based on the zip code. The sub code will be set to 905. Do not change the sub code.

  3. BMF Field Asset PPIA's that originated in ICS will have an open NF PPIA Monitor OI assigned to CCP. Close the OI when the defaulted PPIA is systemically assigned to the group hold file. A notification will be generated to the CCP user advising them to close the NF OI.

  4. Since PPIA's are monitored in status 60, they will be defaulted if taxpayers do not make payments, or if new accounts are assessed. Campus functions sends a CP 523to taxpayers when agreements default for these two reasons.

  5. CCP also monitors PPIAs. If there is an IDRS default of a PPIA, verify that the CP 523 notice was sent by the Campus.

  6. If CP 523 notice was not sent, input command code IADFL. This will cause:

    1. the account to update to status 64; and

    2. issuance of the default notice CP 523.

      Note:

      IRM 5.14.11.4 which explains the notice and actions that can be taken.

  7. If payment was received from the taxpayer, note the case history and verify the case was reinstated to status 60.

  8. If, after receipt of payment, the case was not reinstated to status 60 verify there is no other reason for the default condition, then request reinstatement of status 60.

  9. If taxpayers do not respond within 90 days from issuance of notice CP 523, follow the procedures provided in IRM 5.14.11.6.

    1. After input of the TC 971 AC 163, transfer the case to the appropriate field group pursuant to zip code and grade level on the ICS parameter tables. See IRM 5.14.11.5.

    2. If an Other Investigation (OI) is currently assigned to a field employee, transfer the case to that employee.

    3. Ensure the ICS case history is documented with the actions taken, including a record of responses received from taxpayers and third parties.

  10. If taxpayers did respond to the default notice follow the procedures in IRM 5.14.11.7, IRM 5.14.11.8and IRM 5.14.11.9.

  11. If not resolved pursuant to the procedures listed in IRM 5.14.11.5 cases should be transferred to appropriate collection field groups using the transfer option on ICS. If there is currently an OI assigned to Collections, transfer the case to that employee. See IRM 5.14.7.6regarding monitoring.

5.4.11.8  (05-06-2008)
Manually Monitored Installment Agreements (MMIA)

  1. The Integrated Data Retrieval System (IDRS) is used to monitor most Installment agreements for timely payments on accounts, as well as to determine whether taxpayers remain in compliance with current filing and paying requirements. IDRS also monitors agreements based on the locator numbers recorded at the time agreements are input, IRM 5.14.1–2. Some agreements require special monitoring, such as when accounts reside on the Non-Masterfile (NMF) or if payment amounts are varied. These accounts must be manually monitored.

5.4.11.8.1  (05-06-2008)
IDRS Monitoring

  1. Use IDRS to monitor installment agreements for IMF, out-of-business BMF, or in-business non-trust fund BMF modules in either notice or balance due status meeting these criteria:

    1. The payment must be for a fixed amount;

    2. The payment must be monthly. The payments may be submitted more often but IDRS monitors monthly;

    3. All payment due dates are limited to calendar days 1 through 28.

  2. The Form 433D is received in CCP electronically and/or in paper form.

5.4.11.8.2  (05-06-2008)
Non-IDRS Monitoring - Manually Monitored Installment Agreements (MMIA)

  1. Manual Monitored Installment Agreement (MMIA) and Continuous Wage Levies (CWL) that require monitoring will be handled in Centralized Case Processing (CCP).

  2. Certain assessments and agreements are not compatible with IDRS monitoring. The types of agreements listed below must be manually monitored in CCP to ensure compliance with the terms of agreements:

    1. NMF assessments in either notice or balance due status;

    2. agreements calling for variable or percentage amounts;

    3. agreements with irregular payment intervals;

    4. agreements secured from two or more parties at different addresses on the same liability, e.g. divorced taxpayers, partnerships, etc.;

    5. partial payment installment agreements as described in IRM 5.14.2.2;

    6. L Freeze modules during pending Joint and Several Liability Relief Under IRC section 6015 claims;

    7. any other agreement not compatible with IDRS monitoring

  3. MMIAs remain in Status 26 on IDRS and the modules will remain open on ICS.

5.4.11.8.2.1  (05-06-2008)
Receipt of Manually Monitored Installment Agreements (MMIA) and In-Business Trust Fund Installment Agreements (IBTF-IA)

  1. The Centralized Case Processing (CCP) manager has 5 business days to assign the case to a tax examiner for monitoring.

  2. The CCP tax examiner will conduct an initial analysis within 7 business days from the date of assignment of the case on ICS.

  3. The CCP tax examiner will verify the information on the Form 433D to include:

    1. Taxpayer Name

    2. Taxpayer Identification Number (TIN)

    3. Secondary or Cross-Reference TIN

    4. Taxpayer Address

    5. Taxpayer Telephone Number(s)

    6. Levy Source

    7. Area Designation

    8. Business Unit Designation

  4. If information is missing or incomplete, check IDRS and/or ICS for updated information.

  5. The tax examiner will conduct an initial analysis of the case on ICS and complete the "MMIA/IBTF ICS Checklist" on Word Macro to verify the following information:

    1. Case Sub-code is 900 (IBTF-IA) or 901 (MMIA).

    2. Location Code is SM-Y or SM-N (CCP use only).

    3. Case status code is 26 MMIA on IDRS or status 60 for IBTF-IA. If case is not in status 60, input information on IDRS.

    4. CSED and ASED dates.

    5. Terms of the Installment Agreement.

    6. Any Waivers secured (Form 2750-ASED or Form 900-CSED).

    7. TFRP determination has been made by the revenue officer.

    8. Lien determination has been made by the revenue officer.

    9. Input of TC 971 AC 063.

    10. User Fee.

    11. Compliance Issues (open Del Rets and/or Bal Due not on Installment Agreement).

    12. Federal Tax Deposit (FTD) Requirements.

    13. If Taxpayer contact is needed.

  6. The tax examiner will complete and mail a Letter 3856, Monthly Voucher or Letter 3856Awith a pre-addressed envelope to the taxpayer for the next payment and monthly thereafter on MMIAs.

  7. For IBTF-IA's, the tax examiner will verify:

    1. The case is in status 60 on IDRS. If not input to status 60.

    2. There is an open NF-OI is open on ICS for monitoring the case.

  8. Check IDRS and determine if User Fee ($105) was applied and posted properly.

  9. If user fee is not posted on MMIA deduct fee from the first installment agreement payment received. IRM 5.19.1.5.

  10. If the user fee is not posted on IBTF-IA, wait until three (3) payments have posted, then deduct the fee from the next installment agreement payment if the user fee is still not posted.

  11. No user fee is deducted from CWL cases.

5.4.11.8.2.2  (05-06-2008)
Monitoring Installment Agreements

  1. Manually Monitored Installment Agreements (MMIA's) will be monitored by Centralized Case Processing (CCP) every thirty (30) days.

  2. In-Business Trust-Fund Installment Agreements (IBTF) in status 60 will be monitored by CCP bi-monthly.

  3. The follow-up and notification system on the Integrated Collection System (ICS) will be utilized for each follow-up date using the F7 function. ICS will generate notifications to the tax examiner when the action becomes due.

  4. Each case is to be monitored for payment and compliance.

  5. The tax examiner will:

    1. Confirm payment(s) was/were made as required on Installment Agreement Form 433D.

    2. Verify payment is posted to the correct module through IDRS research.

    3. Post payment to BMF account first unless otherwise specified by the revenue officer on the closing document.

    4. Complete and mail Letter 3856 or Letter 3856A, including a pre-addressed envelope with the MMIA lockbox address to the taxpayer on MMIA cases.

    5. Schedule follow-up date on ICS, monthly for MMIA and bi-monthly for IBTF IA, 7 business days after payment due date on Form 433D to allow for mailing time.

    6. Determine if installment agreement can be systemically monitored by IDRS when condition for manually monitoring is satisfied or no longer exists.

    7. Check IDRS, using command code BMFOL or IMFOL, for compliance.

    8. Close case on ICS and send paper case file to Closed Case Unit when account is paid in full.

  6. If an IA payment is received in CCP, (which should be rare), the tax examiner will:

    1. Complete Form 3244 in duplicate and hand carry to the Clerical Manager.

    2. Complete Form 4287 in triplicate and secure managerial approval.

    3. Post payment to IA modules and document case history.

    4. Use DPC "10" on the posting document when posting payments to MMIA's. This code is designed to allow accumulation of data on