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Part 5. Collecting Process

Chapter 1. Field Collecting Procedures

Section 1. Guidelines for Working Collection Cases

5.1.1  Guidelines for Working Collection Cases

5.1.1.1  (10-12-2010)
Overview — Guidelines for Working Collection Cases

  1. Collection cases involve a variety of unique and challenging situations. Revenue officers (ROs) in SB/SE Collection Field function (CFf) meet face-to-face with individual and business taxpayers to help them resolve their tax issues. ROs investigate the unique facts of each case in order to apply the right treatment to resolve the taxpayer's situation, including appropriate enforcement action, when necessary.

  2. This IRM provides procedural guidance and instructions relating to working Collection cases including Balance Due Accounts (BAL DUEs), Delinquent Return Accounts (DEL RETs), and Courtesy Investigations / Other Investigations (OIs).

    The guidance addresses topics including:

    • Working Cases

    • Coordination between the Business Operating Divisions

    • Balance Due Account Interest Computations

    • Customer Service

    • Integrated Data Retrieval System

    • Taxpayer Identification Number Issues

  3. Elevate any questions or concerns regarding these IRM procedures through your group manager (GM).

    Note:

    GMs must direct any procedural questions or concerns to the appropriate Area contact for possible referral to Headquarters.

5.1.1.2  (10-12-2010)
Working Collection Cases

  1. Collection Field function (CFf) collects taxes and returns through the fair and equitable application of tax law to provide much of the revenue necessary for the operation of the government of the United States. CFf employees serve a critical role in bringing taxpayers back into compliance with the tax laws. CFf employees must work cases strategically by taking simultaneous actions where possible to maximize collection while protecting taxpayer rights.

  2. As provided in IRM 1.4.50.2.2, Reviews, group managers (GMs) will:

    1. continually review employee casework and information gathering activities during announced or unannounced case reviews, annual performance case reviews, field and office observations, morning after reviews, and reviews of work submitted for approval or closure using the Embedded Quality Review System (EQRS):

    2. continually provide ongoing feedback via the evaluation process and the Consultative Process to ensure each revenue officer works cases strategically by taking simultaneous actions where possible to maximize collection while protecting taxpayer rights.

  3. GMs will review employee casework and provide ongoing feedback to ensure employees are:

    • performing quality casework according to the established procedures

      Refer to the following IRMs:

      • IRM 5.1.30, Strategic Approach to Casework.

      • IRM 5.1.31, Workload Management .

    • following the information gathering guidelines in IRM 5.1.3.7.1, Information Gathering Guidelines

    • providing quality customer service as discussed below. IRM 5.1.1.5.

5.1.1.2.1  (10-12-2010)
Casework Procedures

  1. Follow all of the appropriate IRM procedures for each case in your inventory.

  2. Interact with a taxpayer directly or interact with a taxpayer's representative or appointee according to the extent of authority the taxpayer conveyed to the third party. See IRM 5.1.23, Taxpayer Representation.

  3. Disclose information only as provided by law in IRC § 6103, Confidentiality and Disclosure of Returns and Return Information. See IRM 5.1.22 , Disclosure.

  4. Elevate any questions or concerns regarding IRM procedures through your group manager (GM).

    Note:

    As applicable, GMs will direct any questions or concerns to the appropriate Area contact for possible referral to Headquarters.

5.1.1.2.1.1  (10-12-2010)
Case Documents

  1. Transcribe or request copies of any pertinent taxpayer information or third-party information related to the taxpayer when such documentation is provided to you (by a taxpayer or third-parties).

    1. Make photocopies, as needed.

    2. Claim any photocopy fees on your travel voucher if you incur fees when you make photocopies.

  2. Provide a taxpayer with a receipt for a document(s) if requested by a taxpayer or his/her representative, as follows:

    1. Make a photocopy of the document.

    2. Use the "official received date stamp" to stamp the photocopy of the document.

    3. Provide the stamped-copy of the document as a receipt for the document to the taxpayer.

    Caution:

    These procedures do not apply to payments.

  3. See IRM 5.1.2, Remittances, Form 809, and Designated Payments, if a taxpayer requests a receipt for a payment.

5.1.1.2.1.1.1  (10-12-2010)
Case Closing Letters

  1. Issue a case closing letter using the ICS Template process on all cases closed by:

    1. CNC - Hardship closure

    2. Status 12 closure (i.e., full pay, adjustment, credit transfer, etc.)

  2. Send a letter to:

    1. Each taxpayer of record and/or Power of Attorney (POA)

    2. The address(es) of record

  3. Use the appropriate case closing letter when closing a case:

    1. Letter 4222, Notice of Case Resolution, for a Status 12 closure.

      Note:

      There is no requirement to hold a case until the closing action posts to IDRS and the account goes to Status 12.

    2. Letter 4223, Case Closed - Currently Not Collectible, for a CNC-Hardship closure.

  4. Follow the procedures below to generate a case closing letter. IRM 5.1.1.2.1.1.1.1.

5.1.1.2.1.1.1.1  (10-12-2010)
Case Closing Letter Procedures

  1. Follow these procedures to generate the letter depending upon whether it is before or after the case and module(s) are closed on ICS.

  2. BEFORE the case and module(s) are closed on ICS:

    Use the ICS Template process:

    1. Highlight the appropriate letter (i.e., Letter 4222 or Letter 4223).

    2. Select the"Next" button.

      Note:

      The module information will be selected from the module list and auto-populated on the letter and a systemic history will be written to the case.

      Note:

      If the case closing action requires managerial approval and the action is not approved, a manual history entry must be made indicating the letter was not mailed.

  3. AFTER the case and modules are closed on ICS:

    Use the ICS Template process:

    1. Select the "Enter Data Grid" button.

      Note:

      If you select the "next" button, the "There are no modules available" message will be displayed.

    2. Manually enter the module information in the template grid.

    3. Manually enter the history information in the template grid.

  4. Generate a copy(ies) of the letter(s) for the Power of Attorney (POA), as applicable (i.e., if the POA should receive a copy of the letter):

    1. Answer "Yes" to the question: "Do you want to generate a POA letter?"

    2. Enter the appropriate POA information in the ICS Template grid.

      Note:

      Letter 937, Transmittal Letter For Power of Attorney, and another copy of the letter(s) will be generated for mailing to the POA.

  5. Send the letter(s) via secure e-mail to the group secretary, designated clerical contact, or other designated personnel or yo may print the letter and deliver it to the group secretary, designated clerical contact, or other designated personnel for mailing.

    Note:

    The group secretary, designated clerical contact, or other designated personnel will mail any letter(s) on a weekly basis.

5.1.1.2.1.1.2  (10-12-2010)
Relevant Information

  1. Collection case histories should contain only the necessary and relevant information which adds value to the case and supports the conclusion reached. A properly maintained case file protects taxpayer and third-party privacy and minimizes the risk of unnecessary records being inappropriately disclosed.

  2. Purge extraneous information from the case file. Extraneous information includes the following:

    • Information about other individuals or entities which is not pertinent to the assigned case, including data from the national asset locator tool and other electronic research

    • IDRS transcripts which have been superseded by subsequent transcripts

    • Voluminous copies of records which are not relevant to the conclusion

5.1.1.2.1.2  (10-12-2010)
Mailing Guidelines

  1. Use government envelopes appropriately:

    1. IRM 5.1.1.2.1.2.1.

    2. IRM 5.1.1.2.1.2.2.

5.1.1.2.1.2.1  (10-12-2010)
Business Reply Mail Envelope

  1. Envelope 25-BR, Business Reply Mail Envelope, provides "POSTAGE WILL BE PAID BY IRS" and is appropriate for use for the convenience of the government. A Business Reply Mail (BRM) envelope is appropriate for use to provide to a third party to:

    1. solicit information from a third party not representing the taxpayer for the convenience of the persons or firms who need to reply to the IRS.

    2. submit information to the IRS for official purposes.

      Example:

      A BRM envelope may be included with a notice of levy to facilitate the return of the levy.

  2. The following IRMs provide additional information:

    1. IRM 1.2.10.1.20, Policy Statement 1-113, provides policy regarding postage-paid envelopes furnished with third party inquiries.

    2. IRM 1.22.3.5, Business Reply Mail (BRM), discusses the use of a BRM envelope.

  3. Use a BRM envelope, with a pre-printed return delivery address, to request information for the convenience of the government from someone other than the taxpayer or taxpayer’s representative:

    1. to investigate a tax liability, and/or

    2. to collect a tax liability.

5.1.1.2.1.2.2  (10-12-2010)
Courtesy Reply Mail Envelope

  1. Envelope 25-CR, Courtesy Reply Mail Envelope, does not provide that postage and fees will be paid by the IRS and is appropriate for use for other than for the convenience of the government.

  2. Use a Courtesy Reply Mail (CRM) envelope, with a pre-printed return delivery address (if available), for routine taxpayer correspondence, i.e., Letters 1058, 3174, or 3172.

  3. Do not use a BRM envelope for routine taxpayer correspondence.

5.1.1.3  (10-12-2010)
Coordination between the Business Operating Divisions

  1. Coordination between Collection personnel and personnel in other Business Operating Divisions (BODs) or business units is essential in certain circumstances. When a taxpayer's case is assigned to Collection, and the same taxpayer's case is also open in another BOD or another business unit, effective coordination, with open communication, is critical to:

    • reduce taxpayer burden,

    • provide excellent taxpayer service, and

    • facilitate the appropriate resolution of the Collection case and the case in the other business unit.

5.1.1.3.1  (10-12-2010)
Benefits of Coordination

  1. The Service wants the taxpayer's dealings with the IRS to be organized and manageable. Coordination will provide a perception of " one IRS" to the taxpayer which will also be a benefit to the Service when:

    1. The revenue officer (RO) works closely with the examiner (revenue agent (RA) or other employee), and/or.

    2. The examiner works closely with the RO.

  2. When the RO works closely with the examiner (RA or other employee), the examiner will:

    • be fully informed of the RO's case actions

    • be able to appropriately respond to any inquiry(ies) from the taxpayer

    • be able to respond rapidly to the RO's request for any necessary records and documentation

    • be able to resolve the examination issues and close the case efficiently

  3. When the examiner (RA or other employee) works closely with RO, the RO will:

    • be able to respond promptly to the examiner's request for any necessary records and documentation

    • be able to secure a prompt response to any request for necessary records and documentation from the examiner

    • be fully informed about the taxpayer

    • be able to appropriately respond to any inquiry(ies) from the taxpayer

    • be able to resolve the collection issues and close the case efficiently

5.1.1.3.2  (10-12-2010)
Coordination Procedures

  1. Review your cases for other BOD or business unit involvement including Appeals.

  2. Research IDRS Command Code (CC) AMDISA to determine if an examination is open on your IMF, BMF, or EPMF taxpayer.

    1. Look for TC 420 (Examination Indicator).

    2. Look for an open "—L" freeze (AIMS Indicator — Account selected for audit freeze is set by posting TC 420/424. Module freeze.)

  3. Look up the assigned group on AMDISA when your case has a related examination open.

    Note:

    The AIMS ASSIGNEE CODE (AAC) is for use by all Business Operating Divisions (BODs)

    The AAC is a 12-digit code that is used for the management structure so that returns and time applied to returns can be applied to the correct location for management information reports. The AAC is displayed on page 2 of AMDISA.

    The AAC is broken down into three fields.

    • PBC (Primary Business Code)

    • SBC (Secondary Business Code)

    • EGC (Employee Group Code)

    1. See IRM 4.9.1.5.1.1, AIMS Assignee Code, for additional information.

    2. Use the EGC to determine the assignment.

    3. Obtain more specific information, such as group manager, address, and phone number of a group represented by an EGC, as needed, at: http://sbse.web.irs.gov/AIMS/docs/EGCbyPBC.xls .

  4. Follow any locally established procedures, if applicable, to coordinate with the assigned examiner, as needed.

  5. Follow the following procedures, when applicable.

5.1.1.3.3  (10-12-2010)
Additional Procedures for Coordination with LMSB

  1. Research CC AMDISA to determine if the return is assigned to LMSB. A return assigned to LMSB will be assigned a Primary Business Code (PBC) 30X.

  2. Determine if the LMSB case is a Coordinated Industry Case (CIC) or an Industry Case (IC)

    • the case is a Coordinated Industry Cases (CIC) taxpayer if a " CIC " indicator is reflected on the AMDISA.

    • the case is an Industry Case (IC) taxpayer if an "IC " indicator is reflected on the AMDISA.

    Note:

    IRM 4.46, LMSB Guide for Quality Examinations, provides procedures for all LMSB cases, including both Coordinated Industry Cases (CIC) and Industry Cases (IC).

  3. Coordinate with the RA assigned to the related return according to the procedures displayed in the following table when you determine that a case assigned to you also has a return open for examination in LMSB.

    COORDINATION with LMSB
    IF THEN
    The taxpayer is a CIC taxpayer…

    • Contact the RA assigned to the case via secure e-mail or by phone before contacting the taxpayer.

    • Do not contact the taxpayer prior to coordinating with the RA.

    • Request your group manager (GM) to contact the GM of the RA assigned to the case to facilitate contact with the RA if you are unable to contact the RA.

    • Coordinate with the RA, as needed, to facilitate appropriate response(s) to any inquiry(ies) from the taxpayer and to resolve any issue(s).

    The taxpayer is an IC taxpayer…

    • Attempt to contact the RA assigned to the case via secure e-mail or by phone before contacting the taxpayer, whenever possible.

    • Coordinate with the RA, as needed, to facilitate appropriate response(s) to any inquiry(ies) from the taxpayer and to resolve any issue(s).

    Reminder:

    Always coordinate with the RA on a CIC case. Coordinate with the RA, if possible, on an IC case.

5.1.1.3.4  (10-12-2010)
Additional Procedures for Coordination with SB/SE

  1. Research CC AMDISA to determine if the return is assigned to SB/SE. A return assigned to SB/SE will show Primary Business Code (PBC) 2XX.

  2. Coordinate with the examiner assigned to the related return, as needed, when you determine that a case assigned to you is also open in SB/SE for examination, to facilitate appropriate response(s) to any inquiry(ies) from the taxpayer and to resolve any issue(s).

  3. Refer to the above section regarding HARA cases, as applicable.

  4. See IRM 5.1.12.8.1, Coordinating with Examination on HARA Cases.

5.1.1.3.5  (10-12-2010)
Additional Procedures for Coordination with TEGE

  1. Research CC AMDISA to determine if the return is assigned to TEGE. A return assigned to TEGE will show Primary Business Code (PBC) 4XX.

  2. Coordinate with the examiner assigned to the related return, as needed, when you determine that a case assigned to you is also open in TEGE for examination, to facilitate appropriate response(s) to any inquiry(ies) from the taxpayer and to resolve any issue(s).

  3. Refer to the above section regarding Indian Tribal Government cases, as applicable.

  4. See IRM 5.1.12.24, Indian Tribal Governments.

5.1.1.3.6  (10-12-2010)
Additional Procedures for Coordination with Appeals

  1. Collection refers tens of thousands of cases to Appeals each year through appeal programs and processes such as Collection Due Process (CDP), Offer in Compromise (OIC), Trust Fund Recovery Penalty (TFRP), Penalty Appeals, and Collection Appeal Program (CAP).

  2. The Internal Revenue Code (IRC) prohibits or restricts levy in many instances while certain appeals are pending.

    Example:

    IRC 6330(e), Suspension of collections and statute of limitations, generally prohibits levy on a tax period for which certain CDP matters are pending. See IRM 5.1.9.3.5 , Levy Action during the Period of the CDP or Equivalent Hearing, for additional information.


    Example:

    IRC 6331(k), No levy while certain offers pending or installment agreement pending or in effect, generally prohibits levy while certain OIC or installment agreement (IA) proposals are in effect or pending. See IRM 5.8.3.18, Withholding Collection, for additional information on general levy restrictions while an OIC is pending, and IRM 5.14.1.5 , Levy Restrictions and Installment Agreements, for additional information on general levy restrictions concerning IAs.)

  3. A taxpayer may owe liabilities for multiple periods. However, not all those liabilities are under the jurisdiction of Appeals. This is especially true with CDP. IRC 6330 requires Appeals to consider alternatives to a proposed levy action, such as an IA, OIC, or a request to have the account placed in Currently Not Collectible (CNC) status. These alternative collection actions generally apply to all outstanding tax debts, regardless of whether they are the subject of the CDP hearing.

    Example:

    A revenue officer (RO) has Form 941 balance due accounts on XYZ Corporation for periods ended 200712 and 200806. The taxpayer did not respond to Letter 1058, Notice of Intent to Levy and Notice of Your Right to a Hearing, issued several months ago which listed the 200712 liability, but there is a CDP levy case under IRC 6330 pending in Appeals for the 200806 liability.
    Even though only the 200806 period is in Appeals, the IA proposal encompasses all outstanding tax debts, so the TC 971 AC 043 applies to both the 200712 and 200806 periods.
    The RO must follow the instructions in IRM 5.1.9.3.5, Levy Action during the Period of the CDP or Equivalent Hearing, and IRM 5.14.1.5, Levy Restrictions and Installment Agreements.

  4. The following table provides information about potential indicators of Appeals involvement in a case and the possible need for coordination with Appeals before proceeding with collection activities:

    Indicators of Pending Appeals and Reference to Corresponding IRM Guidance
    Transaction Code Matter Pending in Appeals IRM for Additional Information
    TC 480 Offer in Compromise (may be pending in Appeals or SBSE)

    • IRM 5.8.3.18
    TC 520 cc 76TC 971 AC 275 Collection Due Process — Lien

    • IRM 5.1.9.3.5

    • IRM 5.11.1.3.11

    • IRM 5.12.1.2.20
    TC 520 cc 77TC 971 AC 275 Collection Due Process — Levy

    • IRM 5.1.9.3.5
    TC 971 AC 278 Collection Due Process Equivalent Hearing — Lien or Levy

    • IRM 5.1.9.3.5
    TC 971 AC 043 Pending Installment Agreement (may be pending in Appeals if there is also an open CDP or equivalent hearing case)

    • IRM 5.14.1.5

    • IRM 5.1.9.3.5

  5. Contact with Appeals is limited by the ex parte provisions under Rev. Proc. 2000-43, so careful review of the IRM is required.

  6. Review the following IRM sections carefully before contacting Appeals to discuss a case in order to avoid potentially prohibited ex parte communication.

    1. See IRM 5.1.9.3.5, Levy Action during the Period of the CDP or Equivalent Hearing

    2. See IRM 5.8.3.18, Withholding Collection

    3. See IRM 5.1.9.5, Communications with Appeals.

    Note:

    You may want to consult with your GM.

5.1.1.4  (10-12-2010)
Balance Due Account Interest Computations

  1. The Master File is capable of systemically generating most normal interest calculations and some restricted interest calculations. For purposes of addressing Master File capabilities, the term "restricted interest" refers to those calculations that Master File cannot systemically perform.

  2. It is important to always compute interest accurately, including complex or manually computed interest and restricted interest. When simple interest is present in a module, IDRS Command Codes (CC) such as COMPA and INTST accurately provide an accrued interest computation. When restricted interest is present in a module, these command codes will not perform the calculation, so you will need to secure a computation using the Commercial off the Shelf (COTS) software program called InterestNet.

    Note:

    The InterestNet software program is housed in Centralized Case Processing (CCP) in the Field Office Resource Team (FORT). FORT personnel will provide any necessary restricted interest computation.

  3. Calculate accrued interest for all payoff computations.

  4. Advise taxpayers or third parties, i.e., title companies, who contact you regarding the distribution of funds in an escrow account or who otherwise need a lien released, on a case that is not assigned to you, to contact the Centralized Lien Unit (CLU). The external number for the CLU is 1-800-913-6050; this number is staffed Monday through Friday from 8:00 AM to 5:00 PM across each time zone.

  5. Take the following action on a case that is assigned to you when the taxpayer’s module(s) contains restricted interest:

    1. Prepare an e-mail message to the FORT to request the restricted interest calculation.

    2. Type "Request for Restricted Interest Calculation" in the subject line of the message.

    3. Include the following necessary information in the body of the e-mail message:

      Information Required by the FORT
      1. Taxpayer Name
      2. Taxpayer Identification Number (TIN)
      3. Tax Period
      4. Date of Payoff
      5. A copy of a current transcript (TXMOD) to provide additional information such as the "2% date" for Large Corporate Underpayments.

    4. Send the message to the FORT via secure e-mail at: *SBSE CCS RESTINT

  6. Refer to the following IRM sections if you require additional information:

    1. See IRM 5.4.12, Field Office Resource Team, regarding information about the work and procedures of the FORT.

    2. See IRM 5.4.12.2.1.2, General Case Processing Referrals, regarding contacting the FORT to compute accrued interest when the taxpayer’s module contains restricted interest.

    3. See IRM 20.2.6, Methods of Computing Interest, regarding methods of computing interest by the use of IDRS or Automated Computation Tools (ACTs).

    4. See IRM 20.2.6.4, Interest Computation Tools, regarding InterestNet.

    5. See IRM 20.2.8.6, Reasons for Restriction, regarding additional reasons for restricting interest on a tax module.

5.1.1.4.1  (10-12-2010)
Common Restricted Interest Freeze Codes

  1. The Master File is capable of systemically generating most normal interest calculations and some restricted interest calculations.

  2. There are four specific Master File freeze codes that are directly related to module conditions restricting the computation of interest. The following is a list of the four freeze codes.

    Common Restricted Interest Freeze Codes
    –I Computer generation of underpayment interest is restricted. Underpayment interest must be manually updated and input.
    I– Computer generation of overpayment interest is restricted.
    –C Underpayment interest is restricted due to taxpayer being a participant in a Combat Zone.
    –O Underpayment interest is restricted due to taxpayer living in a Disaster Area.

    Note:

    This list is not all-inclusive. See Document 6209 for additional freeze codes.

  3. Locate the code on the account transcript (TXMOD) following the acronym "FRZ>."

5.1.1.5  (10-12-2010)
Customer Service

  1. The Service is dedicated to providing quality service to all taxpayers and their representatives. Providing quality service to taxpayers requires the following:

    1. advise taxpayers of their rights in each matter, and

    2. be sensitive to those situations where the taxpayer should be referred to the Taxpayer Advocate Service.
      See IRM 13.1.7 , Taxpayer Advocate Service (TAS) Case Criteria .

  2. Endeavor to assist the taxpayer even if he/she has questions or concerns beyond your area of expertise or beyond your responsibility by researching the appropriate publication, the IRWeb, or IRS.gov.

  3. Seek advice from your coworkers or your group manager (GM) if a taxpayer has questions or concerns beyond your area of expertise or beyond your responsibility.

5.1.1.5.1  (10-12-2010)
Detail to the Field Assistance Walk-in Counter

  1. This IRM section provides guidance regarding CFf employees detailed to the walk-in counter. From time to time, a Collection employee who works in a Post of Duty (POD) where a Taxpayer Assistance Center (TAC) is located may be called upon by Field Assistance (FA) to help staff the walk-in counter. Generally, the TACs attempt to provide counter coverage for each other, especially because Collection employees are restricted from being in the work area controlled by the TAC, so details to the TAC should not happen often.

    1. Use of Document 12164, Publication Method Guide (PMG), is mandatory for all Field Assistance employees and detailees when answering tax law questions. The PMG is a tool (used in conjunction with the applicable publication) that provides Field Assistance (FA) employees with an interview technique, pre-determined questions, and specific publication references to result in an accurate answer to the taxpayer's question.

      Exception:

      The Interactive Tax Law Assistant (ITLA) is an enhancement to the PMG. ITLA is being rolled out at the time of publication of this IRM. If an ITLA Tax Law Category (TLC) is available, ITLA use is mandatory to answer tax law questions. Otherwise, use the PMG.

    2. Other reference materials provide information about and instructions for numerous situations.

  2. The other reference materials necessary to help man the walk-in counter include the current versions of:

    1. 21.3.4, Field Assistance , links to the other relevant sections of the IRMs that Field Assistance (FA) uses to resolve customer inquiries.

    2. Publication 17, Your Federal Income Tax.

    3. Document 6209, ADP and IDRS Information.

  3. Group managers must follow these procedures:

    Managerial Procedures for Revenue Officer Details to the Counter
    Managers must ensure:

    1. a detailed employee is a well-trained revenue officer (RO) who has completed basic training and is no longer assigned an OJI.

      Note:

      Do not detail an RO trainee to staff the TAC counter.

    2. a detailed employee is provided with all appropriate reference materials.

    3. TAC must provide advance notice of the need for counter backup to CFf.

      Note:

      To prevent scheduling conflicts, Collection needs to receive as much advance notice as possible when CFf assistance is required, particularly in smaller PODs.

    4. the RO to be detailed does not have a scheduling conflict, that is, a scheduled appointment with a taxpayer.

      Note:

      Do not require an RO with a scheduled appointment with a taxpayer to cancel or reschedule that appointment in order to be able to staff the counter.

     

5.1.1.5.1.1  (10-12-2010)
Considerations before Reporting to TAC

  1. Become familiar with ITLA before you report to TAC for your detail at the counter.

    1. See Document 6987, Interactive Tax Law Assistant (ITLA). Document 6987 is a self-instructional resource and practice guide.

    2. See IRM 21.3.4.3.6, Tax Law Assistance, for a discussion of ITLA.

  2. Request training before reporting to TAC if you believe you need some training on how to use ITLA effectively.

  3. Discuss why you should not be assigned to the counter with your GM if:

    1. you are still a revenue officer trainee.

    2. you do not believe you could perform effectively because you have not been afforded the training you requested pursuant to paragraph (2) of this subsection.

    3. you have a scheduling conflict, that is, you already have a scheduled appointment with a taxpayer for the corresponding time frame.

      Note:

      You are not required to cancel or reschedule a scheduled appointment with a taxpayer in order to be able to man the counter.

5.1.1.5.1.2  (10-12-2010)
Counter Procedures

  1. Assist the customer to the fullest extent of your capabilities when working the walk-in counter.

    1. Refer to the appropriate PMG/ITLA reference to research the proper procedures to follow to assist the customer, as needed.

    2. Check with the lead employee at the counter or with the TAC manager if you are unaware how to handle a customer's concern.

    3. Ensure that you timely refer a customer's concern to the area which can offer the required assistance if a customer has questions or concerns beyond your responsibility.

      Note:

      TAC managers should ensure that offices have procedures in place to address these situations.

  2. Allow the taxpayer to do the following if advising the taxpayer to call the toll-free number (and/or write to the campus) is the necessary and correct action for a particular taxpayer's situation.

    • Make any necessary, tax-related calls from an IRS office phone,

    • Make photocopies, and/or

    • Forward any necessary information through the IRS mail system.

  3. Do not send the taxpayer away with his/her question unanswered. It is never acceptable to only give publications to taxpayers who have a tax law question if the taxpayer still has a question. Try to ensure you have answered the taxpayer's question.

    1. Provide every taxpayer with a tax law question either an answer or a referral.

    2. Handle all out-of-scope tax law questions by using the current referral procedures.

    See IRM 21.3.4.3.7, Referral Procedures.

  4. Do not advise the taxpayer to call the toll-free number or write to the campus.

    Exception:

    Some offices have a telephone or a bank of telephones which provide direct access to the toll-free number. In those offices, it is permitted to direct the taxpayer to the toll-free number.

    Exception:

    In some cases, the only appropriate course of action is for the taxpayer to call the toll-free number (e.g., tax-exempt question) or write to the campus ( e.g., request for penalty abatement).

  5. Take the following actions, as appropriate, depending upon the equipment available at your location and the command codes available in your IDRS profile:

    • access account information,

    • download transcripts,

    • review account information, and/or

    • place various indicators on the taxpayer's account through Desktop Integration (DI) or via IDRS.

      Note:

      DI is scheduled to be renamed to Account Management Services (AMS) during FY 2009. AMS will retain all of the functionality currently on DI. DI/AMS provides a common Interface that allows users of multiple IRS systems to view history and comments from other systems and to access a variety of case processing tools without leaving DI/AMS.

  6. Refer to the "Post of Duty" list on the Servicewide Electronic Research Program (SERP) at: http://serp.enterprise.irs.gov/databases/who-where.dr/podlist.dr/podlist.toc.html for phone numbers and/or fax numbers for forwarding any needed information.

5.1.1.6  (10-12-2010)
Integrated Data Retrieval System

  1. The Integrated Data Retrieval System (IDRS) is a large scale, mission critical, steady-state computer system that consists of databases and operating programs that support Internal Revenue Service (IRS) employees working active tax cases within each business function Servicewide. IDRS:

    1. is designed to maintain national data base files with random access capability from remote locations. IDRS employs storage devices and visual display terminals located in the campus and selected field offices to provide a two-way rapid communications pipeline between the field and the data base files.

    2. contains taxpayer data information provided by taxpayers via the information they provided in their tax returns. IDRS also contains information collected from employees who are authorized to log on, work, and process taxpayer cases including audits, payments, and collection activities.

    3. provides for systemic review of case status and notice issuance based on case criteria, thereby alleviating staffing needs and providing consistency in case control. Working in harmony with the Individual, Business, and Non-Master Files (IMF, BMF, NMF), IDRS presents a ready source of current information on taxpayers.

  2. IDRS data is retrieved and displayed using command codes on standard IDRS screens. The data is retrievable by personal identifiers such as:

    • Taxpayer name

    • Taxpayer Identification Number (TIN)

    • Taxpayer Information File (TIF) record type

    • Master File Transaction (MFT) Code

    • Document Locator Number (DLN)

    Note:

    IDRS input information is tracked via audit trails under an employee's IDRS number. Each employee authorized to use IDRS is assigned an IDRS number (that is, the number used by IDRS to assign tax cases to a particular employee).

  3. IDRS manages data that has been retrieved from the tax Master File allowing IRS employees to:

    • take specific actions on taxpayer account issues,

    • track status, and

    • post transaction updates back to the Master File.

  4. IDRS enables instantaneous visual access to certain taxpayer accounts; IDRS capabilities include:

    • Researching account information and requesting returns.

    • Entering transactions such as adjustments entity changes or establish taxpayer accounts, etc.

    • Entering collection information for storage and processing in the system.

    • Automatically generating notices, collection documents and other inputs.

  5. The heart of IDRS, from the Collection activity standpoint, is the active file of potential cases established at the National Computing Center (NCC) for BMF, IMF, and NMF output:

    • accounts receivable,

    • delinquent filers, and

    • credit balance accounts.

  6. IDRS does not directly share any data with State or Local Governments. However, data that is processed by IDRS, and then sent to the Master File, is shared with State and Local Governments as part of the IRS Fed-State Program. This link provides access to information about Fed/State Information Sharing: http://www.irs.gov/govt/liaisons/article/0,,id=133087,00.html

  7. Refer to Document 6209, IRS Processing Codes and Information, for additional information. Document 6209 is a reference guide containing sensitive Automatic Data Processing (ADP) and IDRS data relative to various components of the IRS. Section 13 discusses IDRS.

5.1.1.6.1  (10-12-2010)
Operation of IDRS

  1. IDRS will generate or suppress, as required, the various notices to be issued to taxpayers upon establishment of an account receivable or a delinquency filing condition.

    1. Balance due (BAL DUE) accounts (that is, receivables) are established at the time assessments are made and BAL DUE modules are updated with subsequent activity.

    2. Delinquent return (DEL RET) accounts are established when a delinquency condition is determined.

    IDRS will generate balance due accounts and return delinquency investigations to the Automated Collection System (ACS). IDRS will also generate Integrated Collection System (ICS) BAL DUEs, DEL RETs, follow-up notifications, and related information to the applicable CFf offices, reflecting current actions not known by the responsible unit on assigned cases.

    The IDRS database is kept current in four ways.

    1. IDRS is updated weekly with data extracted from the National Computing Center (NCC) Master File and NMF to reflect the latest posted taxpayer account information.

    2. IDRS is updated immediately when terminal input data is posted.

    3. IDRS memorandum information is gathered daily from the campus and field office transaction files while the data are still in the pipeline to the NCC for posting to the Master File.

      Note:

      This memorandum information is carried in the data base as pending transactions until processed information is available from the next weekly updating of the Master Files.

    4. IDRS is updated daily with uploads of certain transactions input to ICS.

5.1.1.6.1.1  (10-12-2010)
IDRS Case Controls

  1. Generally, a case controlled on IDRS remains in the system for a limited period after its status is changed to closed. A case is closed only after final actions are completed and posted.

    The following are examples of final case closing actions:

    • collected in full

    • abated in full

    • reported currently not collectible

    Actions temporarily suspending collection are not valid closing actions and do not remove accounts from the system.

    The following are examples of temporary suspending actions:

    • military deferments

    • offers in compromise

    • bankruptcies

    • payment tracer and adjustment requests

    • pending installment agreements (IAs)

    • pending court actions

    Case controls will not close off IDRS automatically. Periodically the campuses will generate an Overage Case Control Report so the initiating function can assess the validity of outstanding controls. When these reports are forwarded to the area, the function which established the control is responsible for processing the report and closing unnecessary control bases.

  2. Use command code (CC) ACTON to establish and modify case controls. See IRM 2.3.12, Command Code ACTON.

5.1.1.6.1.2  (10-12-2010)
Revenue Officer IDRS Profiles

  1. Employee access to IDRS is determined by each employee's specific need to access taxpayer data to perform his/her assigned duties.

    Note:

    The group manager (GM) will determine which employees have access to IDRS and for what purposes.

    Only a revenue officer (RO) who needs access to the data in IDRS, as a part of his/her official duties, will be authorized to have IDRS access.

    Online Form 5081 (OL 5081) documents at what levels an RO may view and use the data. OL 5081 is signed by the employee and the employee’s manager. By signing this document, both the user and manager are accountable for misuse of the system.

    Each RO who registers to use IDRS will have an IDRS security profile that determines his/her level of access to IDRS data.

    Caution:

    An RO should only have research command codes in his/her IDRS profile.

    Note:

    GMs must ensure that each RO in his/her group has research capability only. GMs must en sure an RO is not profiled with command codes that can change the status of any account. GMs must ensure separation of duties by seeing that each RO who is assigned a receipt book (Form 809, Receipt for Payment of Taxes), never has an IDRS profile that includes command codes that would allow him/her to do adjustments. This applies to all ROs including ROs in Advisory groups, ROs on the Headquarters staff, ROs on staff at a campus, as well as the ROs in Collection groups.

  2. Refer to the following IRMs for additional guidance:

    • See IRM 5.1.3.10.1 , Separation of Duties.

    • See IRM 5.1.2.7.3, Separation of Duties — Form 809.

5.1.1.6.1.3  (10-12-2010)
IDRS Procedures

  1. Use the Online 5081 process to request to become a registered IDRS user.

  2. Review your IDRS profile to ensure separation of duties.

  3. See IRM 5.1.3.10.1, Separation of Duties.

  4. Ensure that you:

    1. have only research command codes, and

    2. are not profiled with command codes that can change the status of any account.

  5. Alert your GM to modify your IDRS profile if you have been profiled for any adjustment command codes.

    Note:

    GMs should delete any command codes from an RO's IDRS profile that would allow the RO to do adjustments.

  6. Use IDRS appropriately to access relevant information on your assigned cases.

5.1.1.6.1.3.1  (10-12-2010)
Prohibited IDRS Actions

  1. The Taxpayer Browsing Protection Act prohibits the willful unauthorized access or inspection of tax returns and return information.

  2. Access only those accounts for data required to accomplish your official duties.

    Caution:

    Any unauthorized access or browsing of tax accounts to satisfy personal curiosity or for fraudulent reasons is prohibited by IRS and is subject to disciplinary actions.

  3. See IRM 5.1.3.7.5, Taxpayer Browsing Protection Act.

  4. Do not initiate any access on your own records.

  5. Do not initiate any access on the records of:

    • your spouse or any ex-spouse

    • your parents

    • anyone living in your household

    • your close relatives

    • your friends or neighbors with whom you have close relationships

    • celebrities when the information is not needed to carry out tax-related duties

    • an individual or organization for which you or your spouse is an officer, trustee, general partner, agent, attorney, consultant, contractor, employee, or member

    • any individual or organization with which you may have a possible financial conflict of interest or a personal or outside business relationship that could raise questions about your impartiality in handling the tax matter.

5.1.1.7  (10-12-2010)
Taxpayer Identification Number Issues

  1. A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. A TIN is issued either by the Social Security Administration (SSA) or by the IRS.

    • A Social Security Number (SSN) is issued by the SSA.

    • All other TINs, including Employer Identification Numbers (EINs), are issued by the IRS.

    There are five types of TINs:

    1. Social Security Number — "SSN"

    2. Employer Identification Number — "EIN"

    3. Individual Taxpayer Identification Number — "ITIN "

    4. Adoption Taxpayer Identification Number — "ATIN"

    5. Preparer Taxpayer Identification Number — "PTIN"

    Note:

    The "Temporary Identification Numbers" which IRS previously assigned are no longer valid.

    Sometimes, Collection cases have TIN issues. This IRM subsection discusses some of those issues which may be present in your inventory, and when necessary, provides guidance on how to resolve them.

5.1.1.7.1  (10-12-2010)
Unpostable Transaction Codes

  1. When transactions are sent to the Masterfile, certain checks are automatically performed to prevent incorrect information from posting.

    Example:

    If a transaction is input, and the name control does not match the name control on the Masterfile for the TIN used in the input, the transaction goes unpostable. The campus is notified of these unpostable transactions and tries to correct them.

    Sometimes, the campus may not be able to correct the unpostable transaction using just the available information. When this happens, a Tax Examiner (TE), the campus employee who is working on the unpostable transaction, will determine if the input was requested by a revenue officer (RO). If the input was requested by an RO, the TE will:

    1. try to identify the RO who asked for the input, and

    2. contact the RO by e-mail, phone, or by Form 1725 , Routing Slip, to request additional information to correct the transaction.

    Note:

    Phone contact is necessary when the TE does not have an e-mail address. Contact by Form 1725 is necessary when the TE does not have an e-mail address or a phone.


    Sometimes, you may contact the campus employee who is working on the unpostable transaction before he/she contacts you. Regardless of whether a TE contacts you or you contact a TE, when you encounter an unpostable transaction, you must communicate with the TE and endeavor to resolve the unpostable transaction. Sometimes, you may not be able to resolve the unpostable transaction. In that case, you must elevate the situation via your manager.

5.1.1.7.1.1  (10-12-2010)
Unpostable Procedures

  1. Respond as quickly as possible to the TE when you receive one of these requests. Respond by one of the three appropriate contact methods displayed in the table below to ensure the transaction(s) necessary to close the BAL DUE(s) and/or DEL RET(s) can be posted quickly.

    RO RESPONSE TO TE
    Method of Contact Method of Response
    IF THEN
    1. The TE contacts you by e-mail…

    1. Provide the requested information to the TE via a secure e-mail message as soon as possible (no later than three business days after the TE contacts you).

     
    2. The TE contacts you by phone…

    • Provide the requested information to the TE, as soon as possible (no later than three business days after the TE contacts you), in the one of the following manners, appropriate to whether or not the TE makes contact during the call:

     
     
    The TE reaches you directly…

    1. Provide the requested information directly to the TE during the call.

    2. Make an alternate arrangement to provide the information to the TE.

      Note:

      This option applies only if you do not have the information immediately available.

    		 
    The TE leaves you a voice message…

    • Call the TE as soon as possible (no later than three days after the TE contacts you) and take one of the following actions, as appropriate:

    		 

    1. Provide the requested information directly to the TE during the call.

    2. Make an alternate arrangement to provide the information to the TE.

      Note:

      This option applies only if you do not have the information immediately available.

    		 

    1. Leave a voice mail message if you do not reach the TE when you call and provide the requested information and include your contact information (name and telephone number).

    		 
       
    3. The TE contacts you by Form 1725, Routing Slip…

    • Provide the requested information to the TE, as soon as possible (no later than three business days after the TE contacts you), in the following manner:

    		 

    1. Use the Discovery Directory to locate the TE’s manager if the TE did not provide his/her manager’s contact information on the routing slip.

    2. Send a secure e-mail message containing the requested information to the TE's manager.

      Note:

      The TE’s manager will print out the e-mail message and provide it to the TE.

    		 

  2. Do not leave an unpostable transaction unresolved. Always attempt to work the unpostable transaction with the TE.

  3. Follow the procedures below if you and the TE are unable to resolve the unpostable transaction.

5.1.1.7.1.1.1  (10-12-2010)
Unresolved Unpostable Transaction

  1. Sometimes, as discussed above, you and the TE may not be able to resolve the unpostable transaction. In that case, you must elevate the situation to your group manager (GM) because, in some cases, the problem may be a programming issue.

  2. Elevate any unresolved unpostable transaction to your GM via e-mail..

  3. Prepare an e-mail message:

    1. Entitle the message "Unresolved Unpostable Transaction. "

    2. Detail the facts and circumstances of the unresolved unpostable transaction in the body of the message.

    3. Send the message via securee-mail to your GM.

    Note:

    Your GM must direct the unresolved unpostable transaction message to the appropriate Area contact for possible referral to Headquarters.

5.1.1.7.2  (10-12-2010)
Invalid Social Security Number

  1. Name control and Social Security Number (SSN) are checked for validity against records furnished to the National Computing Center (NCC) by the Social Security Administration (SSA).

    If NCC identifies a SSN / name control combination as invalid, NCC will attempt to resolve the inconsistency:

    1. If the inconsistency goes unresolved, a CP 54 (inquiry letter) will be sent to the taxpayer by the campus.

    2. Most often, the taxpayer's response will resolve the invalid account and ensure that the taxpayer, SSA ,and IRS are all using the proper number and name control.

    3. If there is no reply, the account number remains invalid, unless it is corrected by subsequent filing or taxpayer action.

    4. An asterisk (*) will be placed to the immediate right of the SSN to indicate an invalid number.

    Note:

    If you have a BAL DUE, DEL RET, or OI with an asterisk (*) to the immediate right of the SSN, the SSN is invalid

    When contact is made with a taxpayer whose SSN or last name does not agree with IRS records (an invalid SSN issue has still not been resolved), campus personnel will prepare Form 4149, Information to Correct Invalid Social Security Number, and send it to the taxpayer to complete and return.

    The taxpayer must complete the form, provide any necessary verification, and return the form to IRS.

    The campus will make the necessary corrections and issue any refund due or credit the taxpayer's account within 6 to 8 weeks.

5.1.1.7.3  (10-12-2010)
Cross–Reference of Proprietor's SSNs and EINs

  1. When a proprietor has records on both IMF and BMF:

    • the IMF records are under the proprietor’s SSN, and

    • the BMF records are under the proprietor’s EIN.

    Even though the BMF records are stored and retrieved using the EIN, there is a secondary identification number field for the proprietor’s SSN.

    Note:

    On ICS, the "Case Summary Screen" will show, "Yes," next to, "X Ref" when a SSN is available for a proprietor.

5.1.1.7.3.1  (10-12-2010)
Proprietor’s SSN Procedures

  1. View the SSN, when it is available, by going to the " Entity Detail Menu" in ICS and select "Cross Reference. " If the SSN is not available:

    1. Use Command Codes BMFOL and BRTVU to locate the SSN on BMF.

      See IRM 2.3.59, Command Code BMFOL.

    2. Use Command Code ENMOD to locate the SSN on IDRS.

      See IRM 2.3.15, Command Code ENMOD.

5.1.1.7.3.1.1  (10-12-2010)
Using the Proprietor’s SSN

  1. If the SSN is known, it is useful for researching files.

    Example:

    If the proprietor is out of business, the SSN may help locate the person by looking at the IMF, information returns, state employment records, and motor vehicle records.

  2. Use the SSN for inputting information on the IMF to make BMF CNCs reactivate.

    See IRM 5.16.1, Currently Not Collectible.

  3. Use the SSN to freeze IMF refunds and to offset them to pay BMF taxes.

    See IRM 5.1.12.21, Refund Offset .

5.1.1.7.3.1.1.1  (10-12-2010)
Inputting the SSN on the BMF

  1. When a proprietor completes Form SS-4 to apply for an EIN, the Form SS-4 asks for the person’s SSN. When the EIN is assigned, the new business entity is established on BMF and the SSN is entered as a secondary TIN.

  2. Be alert when you locate a SSN for a proprietor who is already on the BMF. This can include a person who:

    • left the SSN off Form SS-4 ,

    • applied for an EIN before the IRS started to enter SSNs on the BMF (started in 1992), or

    • had an incorrect SSN on the BMF.

  3. Enter this secondary TIN on the Master File via Form 2363, Master File Entity Change.

  4. Forward Form 2363, by secure e-mail to CCP to request input of command code BNCHG to enter the TIN on the Master File.

    Reminder:

    It is possible to add SSN cross-reference information to the ICS data base. However, this does not upload to IDRS to update BMF. You must use CC: BNCHG to update BMF.

5.1.1.7.3.1.1.2  (10-12-2010)
Inputting the SSN on the BMF — Joint Return

  1. Follow these procedures when the SSNs from joint returns are followed by "J " (valid SSN) or "#" (invalid SSN), or "*" (invalid SSN).

  2. Research the SSN using IMFOL in these cases to determine if the correct spouse’s SSN was entered on the BMF.

    Note:

    Even a valid SSN (SSN followed by "J" ) could be the wrong spouse’s SSN.

  3. Take the appropriate corrective action as displayed in the table below.

    CORRECTIVE ACTION
    IF THEN
    The IMFOL research shows the wrong spouse’s SSN is recorded as the proprietor’s secondary TIN. Forward Form 2363 by secure e-mail to Centralized Case Processing (CCP) to request input of the correct spouse’s SSN.
    The IMFOL research shows the correct spouse’s SSN is recorded as the proprietor’s secondary TIN. Forward Form 2363 by secure e-mail to CCP to request input of the spouse’s SSN, even though it is the same SSN.

    Note:

    Anyone finding the SSN on the BMF in the future will not have to repeat the research, because the SSN will no longer be followed by "J. "

    The SSN is followed by "# " or "*" (invalid SSN). Forward Form 2363 by secure e-mail to CCP to request input of the correct spouse’s SSN as the secondary TIN when the correct SSN is found.


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