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Part 5. Collecting Process

Chapter 1. Field Collecting Procedures

Section 12. Cases Requiring Special Handling (Cont. 2)

5.1.12  Cases Requiring Special Handling (Cont. 2)

5.1.12.20 
Manual Refund

5.1.12.20.1 
Manual Refund Procedures

5.1.12.20.1.6  (07-02-2010)
Prepare Form 5792

  1. Complete Form 5792, Request for IDRS Generated Refund. See Exhibit 5.1.12-3, Instructions for Use of Form 5792.

    Note:

    Even though instructions for completing Form 5792 are located in IRM 21.4.4, those IRM instructions do not clearly specify which employee is responsible for completing which fields. This exhibit contains specific instructions for Collection Field function (CFf) processing of Form 5792 .

  2. Save Form 5792 as a PDF file.

5.1.12.20.1.7  (07-02-2010)
Prepare Form 3753

  1. Complete Form 3753, Manual Refund Posting Voucher, in if the refund is $10 million or more, a direct deposit is necessary, or the module(s) is(are) not on IDRS.

  2. Save Form 3753 as a PDF file.

5.1.12.20.1.8  (07-02-2010)
Forward the Request for Manual Refund

  1. Prepare a secure e-mail message to your GM to request his/her approval of the request for manual refund.

  2. Type "Request for Approval of Manual Refund" in the subject line of the message.

  3. Attach the following to the secure e-mail message:

    1. PDF Form 5792

    2. PDF Form 3753, if applicable

    3. Report Memorandum

  4. Send the message to your GM via secure e-mail.

    Note:

    Requests for manual refund must be sent by e-mail unless it is not practical (e.g., the Report Memorandum attachment is too large or a scanner is not available to scan the relevant documentation).

    Note:

    The GM is responsible for ensuring good judgment in manual refund processing and following the applicable procedures in the table below. Additionally:
    The GM will provide the revenue officer (RO) with a courtesy copy when he/she sends the request for manual refund to the Territory Manager (TM).
    The TM will provide the RO and the GM with a courtesy copy when he/she sends the request for manual refund to the Area Director (AD).
    The AD will provide the RO and the GM with a courtesy copy when he/she sends the approved/disapproved request for manual refund back to the TM.

    Request for Approval of Manual Refund
    GM Processing
    (1) Review the message from the RO. Prepare a "Forward" message.
    (2) Indicate approval or disapproval in the body of the message.

    1. If approved, go to Step 3.

    2. If disapproved, indicate disapproval by returning the PDF form(s) back to the RO and include the reason for disapproval in the body of the message. Do not continue with Steps 3 and 4.

    (3) Attach the following to the message:

    1. Approved Form 5792

    2. Approved Form 3753, if applicable.

    3. Report Memorandum
    (4) Forward the message (and the attachments) to the TM via secure e-mail with a Cc to the RO.
    TM Processing
    (1) Review the message from the GM. Prepare a "Forward" message.
    (2) Indicate approval or disapproval in the body of the message:

    1. If approved, go to Step 3.

    2. Indicate disapproval by returning the PDF form(s) back to the GM (with a Cc to the RO). Include the reason for disapproval in the body of the message. Do not continue with Steps 3 and 4.

    (3) Attach the following to the message:

    1. Approved Form 5792

    2. Approved Form 3753, if applicable.

    3. Report Memorandum
    (4) Forward the message (and the attachments) to the AD via secure e-mail with a Cc to the RO and the GM.
    AD Processing
    (1) Review the message from the TM. Prepare a "Forward" message.
    (2) Indicate approval or disapproval in the body of the message:

    1. Approval — print out a hard copy of Form 5792 and, if applicable, a hard copy of Form 3753.

    2. Indicate approval by physically signing the printed PDF Form 5792 and, if applicable, Form 3753.

      Note:

      At this time, the use of the digital signature feature is not acceptable for the AD. The AD must actually sign the document(s) with pen & ink.

      Note:

      The Approving Official's physical signature certifies to the Accounting Function that the form was reviewed for accuracy and completeness and is correct.

    3. Scan the signed PDF form(s) for inclusion as an e-mail attachment.

    1. Disapproval — Indicate disapproval by returning the unsigned PDF form(s) back to the TM (with a Cc to the GM and the RO).

    2. Include the reason for disapproval in the body of the message.

    3. Do not continue with Steps 3 and 4.
    (3) Attach the following to the message:

    1. Approved Form 5792

    2. Approved Form 3753, if applicable.

    3. Report Memorandum
    (4) Forward the message (and the attachments) to the TM via secure e-mail with a Cc to the RO and the GM.

  5. Take the following action once you receive approval from the GM, the TM, and the AD.

  6. Forward the approved request for manual refund to the campus via secure e-mail at: *SBSE PSC CSCO Man Ref and include the following:

    1. Approved Form 5792

    2. Approved Form 3753, if applicable.

    3. Do not transmit the Report Memorandum to the POC.

    Note:

    The campus only requires the approved form(s); the campus does not require the Report Memorandum.

  7. Follow these procedures when e-mailing the request for manual refund to *SBSE PSC CSCO Man Ref is not practical.

  8. Access the Campus Program Locator Guide at:http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/01_cplg_toc.htm .

  9. Determine the campus Point of Contact (POC), fax number, and campus address for a manual refund request generated by CFf:

  10. Follow theses steps to locate the campus POC:

    1. Click on the section entitled "SBSE Compliance Services " .

    2. Click on the section entitled "Key Area Office Task Processing " .

    3. Scroll down to the bottom of Page 41 to locate the campus POC contact information.


    or

    1. Access the "Key Area Office Task Processing" page directly at:: http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/43_key_area_task .

    2. Scroll down to the bottom of Page 41 to locate the campus POC contact information.

  11. Follow one of the following procedures:

    • Send the request via fax to the appropriate fax number when e-mailing is not practical, or

    • Send the request via mail to the appropriate mailing address when faxing is not practical.

5.1.12.20.2  (05-20-2008)
Offset Bypass Refund Procedures

  1. This IRM section provides specific procedures for processing an Offset Bypass Refund (OBR). As discussed above, an OBR may be processed in cases of economic hardship even if the taxpayer owes a tax liability. .

    1. Any IRS employee may request the issuance of the OBR. Refer to IRM 21.4.6.5.12.1, Offset Bypass Refund .

    2. An OBR cannot be issued, when there is past-due child support (as defined in section 464 of the Social Security Act), a federal agency non-tax debt, or a state income tax obligation to be collected.

      Note:

      Section 464 of the Social Security Act defines past due support as the amount of a delinquency for support and maintenance of a child and the parent with whom the child is living as determined by a court order or other state administrative procedure.

    3. The Service may issue a manual refund of excess credits without first satisfying (offsetting ) outstanding Federal tax liabilities and, instead, refund the overpayment to the taxpayer.

  2. Follow these Offset Bypass Refund (OBR) procedures when the taxpayer owes a Federal tax liability but requires a manual refund to be issued upon the filing of a tax return prior to assessment of the return.

    Note:

    Follow the general manual refund procedures in the preceding subsection to process a manual refund when the taxpayer does not owe a Federal tax liability or when the taxpayer owes a Federal tax liability if a determination is made by the Service to return levy proceeds for economic hardship.

  3. Determine if an OBR is appropriate.

  4. Refer to IRM 3.13.222.15.1, Offset Bypass Refund (OBR), and IRM 21.4.6, Refund Offset, for guidance on OBR processing.

  5. Do not do the following:

    1. bypass a Treasury Offset Program (TOP) obligation, and/or

    2. refund credits holding on an account to the extent that they will satisfy a TOP obligation.

  6. Prepare a report to your manager in memorandum format to request approval of an OBR once you have determined that an OBR is appropriate.

  7. Include all of the information listed in IRM 5.1.12.20.1.5 , Prepare a Report, in your report except for items (f) and (j).

  8. Attach the following to your report:

    1. Copy of the portion of the case file justifying OBR processing, (e.g., history sheet, taxpayer correspondence),

    2. Copy of the return,

    3. Copy of any IDRS or CFOL research confirming credits claimed on the return,

    4. Copy of Form 433-A and Form 433-B completed by the taxpayer, if available,

    5. Copy of any documentation of the condition causing economic hardship,

    6. Request for terminal input of TC 971 (VV FRM77) Action Code (AC) 36, IRS Offset Bypass Refund.

  9. Forward the request to your manager for approval.

    Reminder:

    Immediately request input of TC 972 AC 36 to reverse the identification of the type of manual refund if the request for refund is rejected.

5.1.12.21  (07-02-2010)
Refund Offset

  1. When a taxpayer owes a liability and an overpayment is available, the Master File generally recognizes this and prevents a refund from being issued. The refund is applied to the outstanding liability. These refund offsets usually happen automatically; however, Collection employees must recognize cases when the offset will not happen automatically. In those cases, input of a TC 130 must be requested to stop a refund from being issued to a taxpayer with a liability.

  2. Several conditions exist which may cause the same refund to be offset. The priority in deciding where to apply the money is:

    • Automatic offset within the Master File

    • Automatic offset across the Master Files

    • Offset requested using TC 130 to pay outstanding taxes which are not offset automatically

    • Offset requested by Financial Management Service (FMS) to pay debts other than taxes, e.g., child support and student loans

  3. Be alert for case situations when the offset will not happen automatically.

  4. Request input of TC 130 to stop a refund from being issued to a taxpayer with a liability according to the following procedures.

5.1.12.21.1  (07-02-2010)
Types of Refund Offset

  1. There are four types of refund offset:

    • Individual Master File Automatic Refund Offset

    • Offset into a Business Master File Module

    • Offset out of a BMF Module

    • Offset Across the Individual and Business Master Files

  2. Each type of offset is discussed below.

  3. Follow the applicable procedures for each type of offset.

5.1.12.21.1.1  (07-02-2010)
Individual Master File Automatic Refund Offset

  1. When an IMF taxpayer files a refund return:

    • the Master File automatically recognizes whether the taxpayer owes for another module within the IMF,

    • the refund is offset to pay the amount owed on the other module, and

    • the campus will send an automated notice to the taxpayer which shows where the refund was applied.

  2. A refund on an IMF return will be offset without a TC 130 in certain situations. The following example explains those situations. In all of the following situations, TC 130 input is not required for IMF refund offset. The offset will happen automatically.

    Example:

    Richard and Mary Brown owe a joint IMF liability and then subsequently:

    • Richard and Mary Brown file a joint return.

    • Richard and Mary file a joint return as Mary and Richard Brown (primary and secondary switch positions on the return).

    • Richard Brown files a refund return separately from Mary.

    • Richard Brown files a joint return as the primary taxpayer with a new secondary taxpayer.

    • Mary Brown files a refund return separately from Richard.

5.1.12.21.1.2  (07-02-2010)
Offset into a Business Master File Module

  1. When a balance due return is filed on the BMF and the credits claimed agree with the credits posted, the module will allow offsets into it.

  2. When a balance due return is filed on the BMF and the credits claimed do not agree with the credits posted, the campus will send an automated notice to the taxpayer which shows the total amount of credits posted to the module.

    Note:

    If this notice is sent, offsets are not allowed into the module until the taxpayer has a chance to respond.

  3. Once the notice is sent, offsets will be allowed into the module if:

    • the taxpayer does not respond to the notice within 10 cycles, or

    • the taxpayer acknowledges that the amount is owed.

  4. Handle a BAL DUE like any other payment tracer or adjustment case when the taxpayer says the amount is not owed.

  5. Request input of TC 130 when the BMF Name Control does not match the IMF Name Control.

    Reminder:

    When the LLC is a disregarded entity, the single member owner remains liable for tax periods ended before January 1, 2009. For tax periods beginning on or after January 1, 2009, the LLC is the liable taxpayer. Since the individual is not liable, TC 130 should not be requested. See IRM 5.1.21, Collecting from LLCs, to identify the liable taxpayer.

5.1.12.21.1.3  (07-02-2010)
Offset out of a Business Master File Module

  1. If there is an overpayment on a BMF module and the credits claimed on the return filed agree with the credits posted, the taxpayer can request the overpayment be transferred to another module with a balance due. Any remaining overpayment will be applied to other balance due modules. If there are no other balance due modules, the overpayment will be refunded.

  2. If there is an overpayment on a BMF module and the payments claimed on the return filed do not agree with the amounts credited, the campus will send an automated notice to the taxpayer which shows the amount of credits posted to the module. The notice will,

    • list all credits posted (if there is enough room), or

    • show only the total credit (if there is not enough room to list all credits posted), and

    • ask where the overpayment should be applied.

    Note:

    If this notice is sent, offsets are not allowed out of the module until the taxpayer has a chance to respond.

  3. Once the notice is sent, offsets will be allowed out of the module if:

    • the taxpayer does not respond to the notice within 10 cycles, or

    • the taxpayer acknowledges there is an amount owed on another module.

  4. Apply the overpayment as requested by the taxpayer if the taxpayer says where the overpayment should be applied.

  5. Refund the overpayment if the taxpayer asks for a refund and there are no BAL DUE modules.

  6. Request input of TC 130 when the BMF Name Control does not match the IMF Name Control.

    Reminder:

    For an LLC, request input of TC 130 only when an individual owner is identified as the liable taxpayer for liabilities assessed in the name and EIN of the LLC. For excise tax periods beginning on or after January 1, 2008 and for employment tax periods beginning on or after January 1, 2009, the LLC is the liable taxpayer, so TC 130 should not be requested. See IRM 5.1.21, Collecting from LLCs.

5.1.12.21.1.4  (07-02-2010)
Offset Across the Individual and Business Master Files

  1. When an IMF refund return is filed and it includes an Employer Identification Number (EIN) on a Schedule C or F, this EIN is automatically checked for any amounts owed for BMF taxes. If there are BMF taxes owed, the IMF refund will generally be offset to the BMF to pay the BMF taxes. However, no automated notice will be sent by the campus.

  2. If the IMF refund is not automatically offset to the BMF to pay the BMF taxes, it is never "too late" to input TC 130. You can request input of TC 130 any time within the applicable period of limitations.  However, if the existence of a relationship of liability has not been previously established, offset(s) is (are) not allowed into a module until the taxpayer has had a chance to confirm or deny the existence of a relationship of liability. Offsets will be allowed into a module when a taxpayer acknowledges that the BAL DUE(s) is (are) owed.

  3. Request input of TC 130 only if:

    1. either the IMF or BMF return(s) reflect(s) a cross-referenced TIN,

    2. review of INOLES confirms matching name and address information, or

    3. you make personal contact with either the IMF or BMF taxpayer to confirm the existence of a relationship of liability.

    Example:

    Several years ago, a taxpayer filed a final Schedule C for his business along with his Form 1040. The business still had a balance due. The IMF refund was not offset for several years. Then the revenue officer (RO) working the BMF BAL DUE realized TC 130 needed to be input on the IMF because he/she obtained a copy of the Form 1040 and Schedule C that reflected the BMF TIN. The RO ensured the BMF BAL DUE(s) was (were) the result of voluntarily filed returns, and the notice of the assessments was sent to the current IMF address on INOLES. The RO requested TC 130 input and the taxpayer's refund was offset the subsequent year and full paid the BMF BAL DUE.

    Note:

    If the taxpayer's Form 1040 return has multiple Schedules C or F attached, only the EIN from the first one will be input for offset.

  4. Request current BMF address information and explain the impact on the taxpayer regarding the cross-referencing of IMF and BMF entitiy(ies) prior to requesting input of TC 130 when:

    1. the IMF and BMF addresses on INOLES do not match, and

    2. the BMF assessment(s) is (are) not the result of voluntarily filed returns.

  5. Request input of TC 130 only if you confirm the existence of a relationship of liability.

5.1.12.21.1.4.1  (07-02-2010)
Limited Liability Company Offset

  1. The widespread adoption of limited liability companies (LLCs) has caused frequent failure of IMF refunds to automatically offset to BMF liabilities, when appropriate.

  2. When the owner of an LLC is the liable taxpayer and reports employment taxes in the owner's name, the BMF Name Control (NC) will match the IMF NC. If there are BMF taxes owed, the IMF refund will generally be offset to the BMF to pay the BMF taxes.

  3. When the liability of an individual owner of an LLC is reported in the name of the LLC, the BMF NC is different from the IMF NC and the system will not perform the offset. Input of TC 130 should only be requested for those tax periods where an individual owner is identified as the liable taxpayer for liabilities assessed in the name and EIN of the LLC.

    Reminder:

    When the LLC is a disregarded entity, the single member owner remains liable for tax periods ended before 1/1/09. For tax periods beginning on or after 1/1/09, the LLC is the liable taxpayer. Since the individual is not liable, TC 130 should not be requested. See IRM 5.1.21, Collecting from LLCs.

  4. For excise tax periods beginning on or after January 1, 2008 or employment tax periods beginning on or after January 1, 2009, the LLC is the liable taxpayer. TC 130 should not be requested, except before the assessment of a Trust Fund Recovery Penalty, as described below.

5.1.12.21.2  (07-02-2010)
Determine if TC 130 Input is Necessary

  1. Screen your assigned BAL DUEs periodically to determine if it is necessary to request input of TC 130.

    Note:

    When a new inter-Area transfer-in BAL DUE is issued, it will already have TC 130 input by the Campus Compliance Services (CCS).

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  3. Request input of TC 130 if an overpayment can reasonably be expected as a credit to the outstanding liability before the expiration of the statute.

    Note:

    Do not request input of TC 130 if less than six months remain on the collection statue.

  4. Request input of TC 130, if applicable, when you:

    • report a BAL DUE(s) currently not collectible, or

    • enter into an installment agreement for longer than six months.

  5. Be alert to situations where a taxpayer submits a refund return and the refund would normally be offset within the Master File without a TC 130, but because of the timing, the refund may be issued.

    Example:

    Taxpayer submits a refund and a balance due return at the same time. The refund return may post before the balance due return. To prevent the refund from being issued, input TC 130 so the refund will be held until the balance due return posts.

    Example:

    Taxpayer files a refund return and the refund has not been issued yet. Then the taxpayer files a balance due return. To prevent the refund from being issued, request input of TC 130.

  6. Request input of TC 130 when a refund:

    1. may be issued before the assessment of a Trust Fund Recovery Penalty. See IRM 5.7.4.7, Notification of Proposed Assessment.

    2. will be issued because a taxpayer with an outstanding liability files a refund return with you.

  7. Close a BAL DUE by requesting input of TC 470 CC 93 if the taxpayer files a refund due return with you and:

    • the return appears to be prepared correctly, and

    • the refund will full pay the BAL DUE.

5.1.12.21.3  (07-02-2010)
Request Refund Offset with TC 130

  1. Follow the appropriate procedures below to request input of TC 130 to offset a refund.

5.1.12.21.3.1  (07-02-2010)
TIN Not on MF

  1. Sometimes a taxpayer's Taxpayer Identification Number (TIN) is not established on the Master File.

  2. Follow these procedures to request input of TC 130 on a taxpayer whose Taxpayer Identification Number (TIN) is not established on the Master File:

  3. Request input of TC 130 and:

    1. request input of TC 000 with a mail filing requirement of 3, and

    2. include the taxpayer's last known address on the TC 000 request.

5.1.12.21.3.2  (07-02-2010)
Offset an IMF Refund

  1. Request input of TC 130 to offset an IMF refund in the situations displayed in the following table. Otherwise, any overpayment will be refunded without TC 130 present on the account.

    Example:

    John and Carol Blue owe a joint liability. John dies and Carol marries Tom Green. Unless a TC 130 is input on Tom Green's SSN, any overpayment on a Tom and Carol Green return (Carol as secondary taxpayer) will be refunded.

    Example:

    Diane Yellow owes a single liability. She marries William Red. Unless a TC 130 is input on William Red's SSN, any overpayment on a William and Diane Red return (Diane is the secondary taxpayer) will be refunded.

    Example:

    Steven and Marcia Orange owe a joint liability. They divorce and Marcia marries James Purple and they file a joint return as Marcia (primary) and James (secondary) Purple. Unless a TC 130 is input on Marcia's SSN, the refund will be issued.

    Note:

    Even though certain IMF refunds are automatically offset against BMF liabilities as discussed above, there are exceptions.

    Example:

    Timothy Black is the single member owner of an LLC, and is identified as the liable taxpayer for unpaid employment taxes. Unless a TC 130 is input on Timothy Black's SSN, any overpayment on a Timothy and Bridgette Black income tax return will be refunded.

    When to Request TC 130 Input to Offset an IMF Refund
    If Then
    (1) A taxpayer owes outstanding joint IMF liabilities and then the taxpayer filed as a secondary taxpayer with someone not liable for the amount due. Request input of TC 130 on the primary individual's Social Security Number (SSN) so any overpayments will be applied to the outstanding joint IMF liabilities.
    (2) A taxpayer owes outstanding joint IMF liabilities, and the secondary taxpayer filed as a primary taxpayer on a joint return with someone other than the spouse who was liable for the tax. Request input of TC 130 on the primary individual's Social Security Number (SSN) so any overpayments will be applied to the outstanding joint IMF liabilities.
    (3) A taxpayer owes Non-Master File (NMF) liabilities. Request input of TC 130 on the individual's Social Security Number (SSN) so any overpayments will be applied to the outstanding NMF liabilities.
    (4) A taxpayer is a partner in a partnership and owes partnership liabilities. Request input of TC 130 on the general partner's SSN so the refund will offset to the outstanding partnership liability when outstanding partnership liabilities exist and the general partner files a personal refund return.
    (5) A taxpayer is a sole proprietor and owes sole proprietor liabilities. Request input of TC 130 on the sole proprietor's SSN so the refund will offset to the outstanding liability when outstanding sole proprietor liabilities exist and the proprietor files a personal refund return without a Schedule C or F.
    (6) A taxpayer is the single member owner of an LLC, and the owner is liable for its employment taxes. Request input of TC 130 on the owner's SSN so the refund will offset to the outstanding liability assessed in the name and EIN of the LLC when the owner is identified as the liable taxpayer for employment taxes and files a personal refund return.

    Reminder:

    For tax periods ended prior to January 1, 2009, the single member owner would still be liable for any outstanding employment tax liabilities. After that time, if the LLC is identified as the liable taxpayer, the individual is not liable and TC 130 should not be requested. See IRM 5.1.21, Collecting from LLCs.

5.1.12.21.3.3  (07-02-2010)
Offset a BMF Refund

  1. Request input of TC 130 to offset a BMF refund in the situations displayed in the following table, otherwise, any overpayment will be refunded without TC 130 present on the account.

    When to Request TC 130 Input to Offset a BMF Refund
    If Then
    (1) A taxpayer owes IMF liabilities and also has an active sole proprietorship. Request input of TC 130 on the individual's Employer Identification Number (EIN) so any overpayments on the BMF will be applied to the IMF liabilities.
    (2) A taxpayer owes Individual Retirement Account File (IRAF) liabilities and also has an active sole proprietorship Request input of TC 130 on the individual's employer identification number so any overpayments on the BMF will be applied to the IRAF liabilities.
    (3) A taxpayer owes Non-Master File (NMF) liabilities and also has an active sole proprietorship Request input of TC 130 on the employer identification number so any overpayments will be applied to the NMF liabilities.
    (4) A taxpayer owes BMF liabilities under more than one Employer Identification Number (EIN). Request input of TC 130 on the other EIN(s) so any overpayments will be applied to any outstanding liabilities.
    (5) A taxpayer owes IMF liabilities and is identified as the liable taxpayer on the BMF as the single member owner of an LLC Request input of TC 130 on the EIN of the LLC where the individual is identified as the liable taxpayer so any overpayments on the BMF will be applied to the IMF liabilities.

    Reminder:

    Overpayments from BMF tax periods where the LLC is identified as the liable taxpayer should not be applied to IMF liabilities.

5.1.12.21.4  (07-02-2010)
Document Preparation to Request TC 130

  1. Use Form 3177, Notice of Action for Entry on Master File, for all other requests for input of TC 130.

    Exception:

    The following procedure applies for reporting a BAL DUE account Currently not Collectible (CNC).

  2. Use Form 53, Report of Currently Not Collectible Taxes , to request input of TC 130 when you are reporting a BAL DUE account CNC.

    Note:

    After your group manager (GM) approves the CNC recommendation, ICS will print Form 3177. The form provides space for manual input of additional information.

  3. See IRM 5.1.12.21.3.1, TIN not on MF. That subsection provides guidance when you need to request input of TC 130 on a taxpayer whose Taxpayer Identification Number (TIN) is not established on the Master File.

  4. Include the following on all documents requesting input of TC 130:

    • Form number, tax period, and Taxpayer Identification Number of the cross-referenced liabilities, and

    • Social Security Number and name of each taxpayer responsible for any joint liability.

      Note:

      Always request input of the TC 130 on the primary number if a joint return is filed.

  5. Do not request any other type of input on the same document.

  6. Send Form 3177 to request input of TC 130 by secure e-mail to Centralized Case Processing (CCP).

5.1.12.21.5  (07-02-2010)
Use TC 131 to Release a TC 130 Freeze

  1. Request release of the TC 130 freeze when:

    1. the liability is paid or abated in full before receipt of CP 44, 188, or NMFL transcript, or

    2. the liability is closed by an adjustment (TC 470 CC 90).

  2. Use Form 3177 with a TC 131 in the "Other" block to release the TC 130 freeze.

  3. Request input of TC 131 if a TC 130 was input in anticipation of assessing a Trust Fund Recovery Penalty (TRFP) pursuant to IRM 5.7.4.7, Notification of Proposed Assessment, and IRM 5.1.12.20.2(6), Offset Bypass Refund Procedures, and:

    1. the recommendation to assess the TFRP is rejected,

    2. the penalty is not assessed within two weeks after Campus Compliance Services (CCS) contacts the revenue officer about a refund that has been frozen, or

    3. the TFRP is assessed, unless it is assessed against a person who files as a secondary taxpayer, and the spouse is not assessed, then overpayments will be refunded if a TC 130 is not present.

  4. Include an explanation about why you are requesting TC 131 on the Form 3177.

  5. Record the date and reason in the case history.

  6. Send Form 3177 requesting input of TC 131 by secure e-mail to Centralized Case Processing (CCP).

5.1.12.21.6  (07-02-2010)
Procedures upon Receipt of CP 44 or CP 188

  1. After offset within the Master File, Master File entities containing a TC 130 are frozen from refunding. A notice is generated when a frozen credit is available:

    • Notice CP 44 is generated for IMF cases, and

    • Notice CP 188 is generated for BMF cases.

  2. Non Master File Liability (NMFL) transcripts are generated when a second credit posts to a module after a CP 44 or a CP 188 is issued and the frozen credit condition is unreversed. A TC 740 causes a transcript to be generated, but a CP 44 or a CP 188 is not issued.

  3. Campus Compliance Services (CCS) processes all CP 44 and CP 188 notices and NMFL transcripts.

  4. The CP 44 and CP 188 notices and NMFL transcripts:

    • indicate that a refund credit is available for offset against a "130 case" , and

    • serve as a turnaround document informing CCS where to apply the overpayment.

  5. Use Part 2 of the CP 44/188 or the NMFL transcript to:

    • request transfer of the credit,

    • notify CCS to release the frozen credit, or

    • request input of TC 131.

  6. Send Parts 2 and 3 of the CP 44/188 and/or the NMFL transcript to Advisory via Form 3210, Document Transmittal .

    Note:

    You can send these to Advisory on a daily basis, or you can accumulate them and send them on a weekly basis. Advisory will send Parts 2 and 3 of the CP 44/188 and/or NMFL transcripts to CCS via Form 3210, Document Transmittal.

5.1.12.22  (05-20-2008)
U.S. Tax Court Subpoena

  1. At the request of a Chief Counsel attorney, Internal Revenue Service employees may be called upon to serve a subpoena issued by the United States Tax Court.

    1. The Clerk of the Tax Court will furnish the original of the subpoena to the Office of Chief Counsel. A Chief Counsel attorney will forward the subpoena to the Field Territory Manager for the vicinity in which the witness resides.

    2. The letter or memorandum to the Field Territory Manager transmitting the subpoena for service will contain any special instructions that Area Counsel wishes communicated to the official serving the subpoenas, or to the witness.

    3. The Field Territory Manager should promptly assign Tax Court subpoenas using Form 2209, Courtesy Investigation.

  2. See IRM 5.1.8, Courtesy Investigations.

5.1.12.22.1  (05-20-2008)
U.S. Tax Court Subpoena Procedures

  1. Accomplish service by personally showing the witness the original subpoena and delivering a copy of the subpoena to the witness.

  2. Mark "Return on Service" on the original subpoena.

  3. Acknowledge such return before a Service official authorized to administer oaths.

  4. Forward the original to the Chief Counsel attorney after you have properly served a copy of the subpoena.

5.1.12.23  (05-20-2008)
Backup Withholding — Overview

  1. Financial Institutions (including banks) and other businesses that pay certain kinds of income must file an information return with the IRS. Generally, these income payments are not subject to withholding; however they may be subject to "backup withholding."

  2. The IRS has two separate Backup Withholding (BWH) programs that require payers to withhold at the backup withholding rate from payment of Form 1099 income. They are:

    • Backup Withholding "B" — Notice Incorrect/Missing TIN process, and

    • Backup Withholding "C" — Notice Underreporter/Nonfiler process.

5.1.12.23.1  (05-20-2008)
"B" Backup Withholding Program

  1. The "B" BWH program provides notices to payers (a financial institution, business or person) who file information returns (the Forms 1099 listed below) with incorrect or missing Taxpayer Identification Numbers (TINs) pursuant to Treasury Regulation § 31.3406(d)-5(d).

  2. Notices CP2100 and CP2100A advise payers that backup withholding (BWH) could become necessary if a payee (the recipient of a Form 1099) fails to certify his/her TIN.

  3. The"B" BWH program includes the following information returns:

    • Form 1099-B,

    • Form 1099-DIV,

    • Form 1099-INT,

    • Form 1099-MISC,

    • Form 1099-OID, and

    • Form 1099-PATR.

  4. Refer to the Backup Withholding "B" procedures contained in IRM 5.19.3.4.1,TIN-Related "B" BWH Notices (CP 2100 & CP 2100A), when you have a BWH "B" BAL DUE assigned to you.

  5. Find more detailed information on the Backup Withholding (BWH) B rules and procedures for payers in Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s).

5.1.12.23.2  (05-20-2008)
"C" Backup Withholding Program

  1. The "C" BWH program provides notices to payees (recipients of the Forms 1099 listed below) who have underreported their interest or dividend income or failed to file a tax return reporting such income when required pursuant to Treasury Regulation § 31.3406 (c)-1.

  2. These notices inform the payee what must be done to prevent backup withholding (BWH).

  3. The "C" BWH program includes the following information returns:

    • Form 1099-DIV,

    • Form 1099-INT,

    • Form 1099-OID, and

    • Form 1099-PATR.

  4. Refer to the Backup Withholding "C" procedures contained in IRM 5.19.3.4.2.2, Procedures for Underreporter/Nonfiler "C" BWH Notices, when you have a case involving BWH "C" assigned to you.

  5. Find additional information for payers who need to start BWH " C" in Publication 1335, Underreporter Backup Withholding Questions and Answers.

5.1.12.23.3  (05-20-2008)
"C" Program Backup Withholding Procedures

  1. Prepare Form 4442, Inquiry Referral, if:

    • the taxpayer requests to have backup withholding (BWH) discontinued, and

    • all the tax modules for which the taxpayer may be liable for BWH are satisfied.

    Refer to IRM 5.19.3.4.2.9, "C" BWH Satisfying Transactions.

  2. Forward the completed Form 4442 to the Compliance Services Collection Operations (CSCO) operations in KCSC or PSC. See IRM 5.19.3.4.2.11(4),"C" BWH Procedures.

  3. Advise the taxpayer that he/she may file (or ask you to complete on his/her behalf) Form 911, Request for Taxpayer Advocate Service Assistance, when some or all of the following apply:

    1. the taxpayer is experiencing or may experience economic harm because he/she has limited income which is needed to meet necessary living expenses,

    2. backup withholding at the applicable rate will cause significant over-withholding,

    3. it appears unlikely that the taxpayer will underreport again, and

    4. the IRS office will not grant the relief requested or will not grant the relief in time to avoid the economic harm.

      Example:

      Senior citizens on a limited, fixed income or other taxpayers dealing with a catastrophic illness (and the related expensive unreimbursed medical expenses) may need to file Form 911 for quick relief.

5.1.12.24  (05-20-2008)
Indian Tribal Governments

  1. IRC § 7871, Indian tribal governments treated as States for certain purposes, states that Indian tribal governments shall be treated as states for certain purposes, so a unique relationship exists between Indian tribal governments and the United States government. This relationship requires a heightened level of sensitivity with respect to compliance efforts.

  2. The Indian Tribal Governments (ITG) office in the Tax Exempt and Government Entities (TE/GE) Operating Division was established in 2000 to assist Indian tribes with federal tax issues. The ITG office coordinates all aspects of tax administration as it impacts Indian tribes including direct assistance, indirect assistance, compliance checks, and examination of returns. The ITG office:

    • is responsible for ensuring that the Service is in compliance with the various Executive Orders outlining the relationships and protocols required in working with Indian tribes,

    • provides primary front-line service by five field groups which are aligned respective to tribal affiliations wherever possible, and

    • serves as the central point for all Service contacts with Federally recognized Indian tribes.

  3. Refer to the following IRM sections for additional information:

    • IRM 4.86.1, Indian Tribal Governments Administration, and

    • IRM 4.88.1, Examination Issues Pertaining to ITG Cases.

5.1.12.24.1  (05-20-2008)
The Role of the ITG Specialist

  1. Indian tribal governmental accounts can be complex and involve an array of legal issues. The Indian Tribal Governments (ITG) personnel (i.e., ITG specialists) are specially trained in the unique areas of tax law and protocol that apply to Indian tribes.

  2. The ITG specialist will:

    • act as a liaison and central point of contact between the Indian tribal officials and the revenue officer (RO) assigned to the case and will advise the officials in advance of a visit from the RO.

    • assist the RO with case-related technical issues specific to Indian tribes.

  3. Tribal constitutions or tribal resolutions may designate a specific person to address tax matters. Land ownership legalities are outlined by treaty to ensure that legal rights are not violated. Technical issues specific to Indian tribes are listed below. This list is not all-inclusive.

    • Determining appropriate contacts within a tribe

    • Determining land ownership legalities unique to Indian tribes

    • Filing requirements

    • Conducting full compliance checks

    • Identifying leviable and non-leviable assets

    • Regulations

    • Treaties

    • Court decisions

    • Statutes

    • Tax law

    • Disclosure issues

  4. Special rules apply to Indian tribes for some tax returns. See IRM 4.88.1.5.3, Filing Requirements.

5.1.12.24.2  (05-20-2008)
Indian Tribal Government Procedures

  1. Identify Indian tribal government entities on IDRS by the business operating division (BOD) code "TE" and the employment code" I."

  2. Refer to IRM 4.88.1.4, Federal Tax Status Of Indian Tribal Governments, for information on Federal taxation issues involving Indian tribal governments.

  3. Contact the local Area ITG group manager before making initial contact on Indian tribal government (ITG) accounts. Access the "How to Contact ITG" page on at http://www.irs.gov/govt/tribes/article/0,,id=96133,00.html to determine the appropriate ITG field contact.

    Note:

    The ITG Manager will assign an ITG specialist to work with you.

  4. Contact the ITG specialist when you:

    1. need to visit an individual tribal member on tribal land to work an IMF account,

    2. have questions about specific filing requirements, or

    3. you are contemplating taking any enforcement action.

  5. Do not assume that the CFO, Treasurer, or Tribal Administrator is the designated tribal contact.

  6. Work closely with an ITG specialist to determine the appropriate contacts within the tribes because the specific person to address tax matters with may be designated in a tribal constitution or through a tribal resolution.

  7. Coordinate with the ITG specialist as your central point of contact with the tribal officials. The ITG specialist will advise the officials of your planned visit.

  8. Keep the ITG specialist involved in material interactions between you, as the representative of the Service, and the tribal government.

  9. Maintain contact with the ITG specialist regarding:

    1. updated plans of action, and

    2. general case developments such as receipt of a new BAL DUE or DEL RET.

  10. Have the ITG specialist assist you in conducting a full compliance check.

  11. Inform the ITG specialist about any new ITG case issuances that are not properly identified as an Indian tribal government accounts.

5.1.12.24.2.1  (05-20-2008)
Enforcement Action on ITG Cases

  1. The Service must comply with Presidential Executive Orders. See IRM 4.86.1.5, Tribal Sovereignty Overview .

  2. Do not inadvertently violate Indian tribal legal rights because there are tribal sovereignty and land ownership legalities unique to Indian tribes which are outlined by treaty.

  3. Contact the ITG specialist before you take any necessary enforcement action on an ITG account, including the filing of a Notice of Federal Tax Lien, the assessment of the Trust Fund Recovery Penalty, or the service of a summons.

  4. Work closely with an ITG specialist to ensure that you secure approval of the ITG Director before serving a summons.

  5. Do not serve a summons on a tribal government or a third party for information concerning a tribal government without approval of the ITG Director.

  6. Work closely with an ITG specialist when you need to serve a levy or you are contemplating a property seizure.

  7. Do not serve a levy or seize property to collect a tribal government BAL DUE without first coordinating with the ITG specialist.

5.1.12.25  (07-02-2010)
Outgoing Mutual Collection Assistance Requests

  1. This subsection discusses Mutual Collection Assistance Requests (MCARs) in general and outgoing MCARs in specific.

  2. The United States has entered into a number of bilateral tax treaties that contain broad provisions for assistance in collection. We currently have five mutual collection income tax treaty partners:

    1. Canada,

    2. Denmark,

    3. France,

    4. The Netherlands, and

    5. Sweden.

    Note:

    The Service also has one estate and gift tax treaty with France that has broad provisions for collection assistance.

  3. The U.S. tax treaties with Canada, Denmark, France, the Netherlands, and Sweden provide that the treaty partner may request assistance from IRS in collecting taxes owed to the treaty partner by individuals residing in the United States. Such requests from the treaty partner to the United States are referred to as incoming Mutual Collection Assistance Requests.

  4. See IRM 5.1.8.7.7, Incoming Mutual Collection Assistance Requests (MCARs).

  5. The IRS can request assistance from our treaty partners to collect taxes owed by individuals residing and/or having assets in the treaty country. Such requests are outgoing mutual collection assistance requests. Outgoing mutual collection assistance requests are discussed below.

  6. These treaties provide that each country, upon request by the United States, may take whatever actions it would take to collect its own taxes in order to collect on behalf of a treaty partner (when requested to do so). This includes the collection of U.S. taxes through the treaty partner's bankruptcy proceedings.

    Exception:

    The treaties for France, the Netherlands, and Sweden provide that they will not collect from their own citizens.
    The treaties for Denmark and Canada provide that they will not collect from taxpayers who were Danish and Canadian citizens at the time the tax liability arose, regardless of what their citizenship may be now.

    Note:

    You cannot pursue collection in MCAR countries when working cases on taxpayers who are citizens of those countries. An exception to this is in Canada and Denmark , where collection can be pursued against taxpayers who are currently citizens of those countries if the assessments arose when they were not citizens of those countries. When in doubt about the prior or present citizenship status of a taxpayer for whom you are considering an Outgoing MCAR referral, consult with the MCAR Coordinator.

  7. Both international revenue officers and domestic revenue officers who are trying to reach income or assets located in MCAR treaty partner countries can generate outgoing MCAR requests.

  8. All outgoing MCAR requests require coordination with the MCAR Coordinator.

5.1.12.25.1  (05-20-2008)
The Role of the MCAR Coordinator

  1. The MCAR Coordinator will:

    • review all referred cases to ensure that they meet the MCAR criteria, and

    • handle the referred cases as displayed in the following table:

    MCAR Coordinator Action
    If Then
    The case is accepted The Coordinator will open a Collection Information Program (CIP) Case and document the ICS history.
    The case does not meet MCAR criteria The Coordinator will document the ICS history with the reason and return the referral to the originator.

  2. The MCAR Coordinators are listed on the Mutual Collection Assistance Requests (MCAR) web page. The direct link to the page is: http://sbse.web.irs.gov/collection/Programs/MCAR/Default.htm

5.1.12.25.2  (05-20-2008)
Coordinating with the MCAR Coordinator to Contact Treaty Partners

  1. Coordinate with an MCAR Coordinator when you:

    1. have any questions on the MCAR program, and/or

    2. need to make contact with a treaty partner.

  2. Do not make any contact with treaty partners. An MCAR Coordinator will handle all contacts with treaty partners.

  3. The MCAR Coordinators are listed on the Mutual Collection Assistance Requests (MCAR) web page. The direct link to the page is: http://sbse.web.irs.gov/collection/Programs/MCAR/Default.htm

5.1.12.25.3  (05-20-2008)
Outgoing MCAR Case Criteria

  1. This subsection discusses outgoing MCAR requests. In general, the outstanding balance, including accruals, must exceed the amount in LEM 5.1.8, Courtesy Investigations, in order to refer an outgoing MCAR case.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      ≡ ≡

    ≡

  3. Contact the MCAR Coordinator via e-mail at *SBSE International MCAR Coordinator. The MCAR Coordinators are listed on the IRWeb.

  4. Access the SB/SE Collection web page and click on "Mutual Collection Agreement Requests (MCAR)"

    1. The link to the Collection web page is: http://sbse.web.irs.gov/Collection/default.htm.

    2. The direct link to the "Mutual Collection Agreement Requests (MCAR)" web page is:http://sbse.web.irs.gov/collection/Programs/MCAR/Default.htm.

  5. The type of U.S. taxes that can be collected by these treaty partners on behalf of the U.S. under an MCAR differs depending on the applicable treaty. See the table below.

  6. Refer the type of BAL DUE accounts displayed in the table below through the MCAR Coordinator.

    Exception:

    You may be able to transfer the case to an International collection group rather than to the MCAR Coordinator if you have verified that the taxpayer resides in a treaty country. See IRM 5.1.8.1.4, Account Transfers to International .

    :

    MCAR Referral to Countries with Treaty Collection Assistance
    Country Type of Taxes
    (1) Canada Any type of tax (including IMF & BMF)

    Exception:


    Do not refer Canadian corporations. In a case involving corporate taxpayers, provide evidence that the corporation is not a Canadian corporation.

    (2) Denmark Income Tax — IMF only
    (3) France Income Tax — IMF only, Estate Tax, and/or Gift Tax
    (4) The Netherlands Income Tax — IMF only
    (5) Sweden Income Tax — IMF only

  7. Do not refer DEL RET accounts as treaty provisions prohibit the referral of DEL RETs.

5.1.12.25.4  (05-20-2008)
Procedures for Preparing an Outgoing MCAR Request

  1. Follow these procedures to request assistance from our treaty partners to collect taxes owed by individuals residing and/or having assets in the treaty country.

  2. Complete a Data Sheet for each case that you select for referral to a treaty partner. Exhibit 5.1.12-2, Outgoing MCAR Data Sheet , provides a Data Sheet template and instructions. See Exhibit 5.1.12-2.

  3. Provide enough details on the Data Sheet so that the treaty partner will have adequate information to collect the tax on our behalf. Provide:

    1. details about the taxpayer,

    2. details about the tax assessment, and

    3. explanations about each of the liabilities you refer to the treaty partner.

  4. Do not provide the taxpayer's Taxpayer Identification Number (TIN) on the Data Sheet. 

    Note:

    Instead of including the taxpayer's TIN on the Data Sheet, include it in a secure e-mail message to the MCAR Coordinator. See IRM 5.1.12.25.5, Procedures for Forwarding an Outgoing MCAR Request.

  5. Obtain MFTRA-U from IDRS to verify the taxpayer's citizenship, and document the Data Sheet.

  6. Attach the appropriate documentation to the Data Sheet based on the type of assessment as displayed in the following table.

    Attachments by type of assessment
    Type of Assessment Attachment(s)
    (1) TC 290 Adjustments IRPTR-O or SUPOL for each tax period.

    Note:


    Attempt to secure the Revenue Agent Report (RAR) if IRPTR-O or SUPOL are not available.

    (2) TC 300 Exam Assessments Revenue Agent Report (RAR) for each tax period (i.e., each TC 300 assessment), if available.
    (3) TC 290 or TC 300 SFR Assessments TXMOD (TC 150 followed by 0.00 and the Letters SFR at the end of the line)

  7. Proceed with an MCAR referral even if you are in doubt about whether or not it will be accepted (because of the exception above regarding the taxpayer's citizenship).

  8. Access the SB/SE MCAR web page at: http://sbse.web.irs.gov/collection/Programs/MCAR/Default.htm and locate a blank data sheet by clicking on the MCAR Data Sheet link.

  9. Forward the Data Sheet (and attachments) as shown below

  10. See additional post-referral procedures below.

5.1.12.25.5  (05-20-2008)
Procedures for Forwarding an Outgoing MCAR Request

  1. Prepare a secure e-mail message to your manager to forward the Data Sheet (and attachments).

    1. Name the pertinent country in the "Subject" line of the message.

    2. Include the taxpayer's Taxpayer Identification Number (TIN) in the body of the secure e-mail message.

      Note:

      The MCAR Coordinator needs the taxpayer's TIN, however the treaty partner does not need the taxpayer's TIN.

    3. Request your GM to signify his/her approval of the outgoing MCAR request by "forwarding" the message to the MCAR Coordinator at: *SBSE C MCAR using secure e-mail.

    4. Request your GM to include you on the "Cc" line of the message.

  2. Send the message (and attachments) to your group manager (GM) using secure e-mail.

  3. Ensure that you receive a copy of the forwarded message.

    Note:

    Follow up with your GM, if needed.

5.1.12.25.6  (05-20-2008)
Post-Referral Procedures

  1. Keep the domestic BAL DUE account open after you refer the outgoing MCAR case to the MCAR Coordinator until you have exhausted all domestic avenues for collection.

  2. Close the case appropriately once you have exhausted the domestic collection potential, i.e., as currently not collectible, continuous levy, etc.

  3. Keep the MCAR Coordinator informed of any changes to the account (i.e., funds collected, 53, etc.).

5.1.12.26  (05-20-2008)
Treasury Enforcement Communications System

  1. The Treasury Enforcement Communications System (TECS) is a database maintained by the Department of Homeland Security (DHS), and it is used extensively by the law enforcement community. It contains information about individuals and businesses suspected of, or involved in, violations of federal law. TECS can provide useful information about taxpayers so employees can attempt taxpayer contact or locate asset information.

  2. Revenue officers can request that delinquent balance due taxpayers be entered into TECS, and the Service will then receive information when those taxpayers travel into the United States for business, employment, or personal reasons. Employees must help maintain the TECS database by requesting that appropriate taxpayers be entered into TECS or be deleted from TECS.

    Note:

    It is important for each employee to understand the benefits the Service derives from TECS because such understanding should ensure that each employee will do his/her part in maintaining TECS.

  3. The taxpayers in TECS are primarily International taxpayers because the cases usually concern persons who reside abroad. However, domestic taxpayers may also be entered into TECS. Taxpayers placed on TECS are often not subject to ordinary administrative and judicial collection procedures because they frequently reside outside the jurisdiction of the US Courts. Information derived from placing a taxpayer on TECS can facilitate contact with these taxpayers or provide asset information which, in turn, may facilitate collection of their delinquent liabilities.

  4. This IRM provides TECS procedures for SB/SE Collection Field function (CFf) employees. It does not discuss using TECS historical travel information. See IRM 5.1.18, Locating Taxpayers and their Assets, for that information. This IRM discusses the role of the TECS Coordinator, notifications to the Service from Immigration and Customs Enforcement (ICE), providing information about taxpayers to be placed on TECS, and the criteria for entering a taxpayer on or removing a taxpayer from TECS. It also provides routine procedures to request entry or removal and expedited TECS entry procedures.

    Note:

    IRM 9.4.2.4.2.5.3 , Other IRS Functions, also discusses TECS and prescribes the use of Form 5523, TECS Query Request, to request information from TECS. However, SB/SE CFf employees should not use Form 5523.

  5. Consider the following example to increase your awareness and understanding about TECS.

    Example:

    A CFf RO has a balance due taxpayer in his/her inventory and he determines the taxpayer resides in Norway. The RO transfers the case to International.

    The International RO determines the taxpayer is "Unable to Contact" and closes the case from open inventory. The RO requests that the taxpayer be placed on TECS.

    One year later, the taxpayer travels to the US and initially arrives at an airport in New York. Upon the taxpayer's arrival, Immigration and Customs Enforcement (ICE) informs the TECS Coordinator where the taxpayer is ultimately traveling to, how long the taxpayer plans to stay, and on which flight(s) the taxpayer will be departing. The taxpayer will be staying in Denver for one week.

    The ROs who had previously worked the case had not been aware of any connection the taxpayer had to Denver.

    The TECS Coordinator notifies the group manager (GM) in International who is responsible for cases in Norway (the country in which the taxpayer resides).
    The International GM issues an OI to the Collection group working the location in Denver where the taxpayer is staying.

    The GM in Denver assigns the case to an RO, and the RO meets with the taxpayer and secures a financial statement. When this happens, the IRS learns about the taxpayer's assets for the first time as other research methods and attempted contacts were unsuccessful. The RO provides the information to International and closes the OI.

    After the OI is closed, the International RO does further research once he/she is aware of the Denver nexus. He/she discovers the taxpayer has real property held in the name of a trust and files a nominee lien.

5.1.12.26.1  (05-20-2008)
Do Not Discuss TECS with Taxpayers

  1. The Department of Homeland Security (DHS) requests that IRS employees not discuss the Treasury Enforcement Communications System (TECS) with taxpayers.

    Caution:

    When you are talking with a taxpayer to inform him/her that you may place him/her on TECS, do not discuss the existence of TECS with him/her. Instead, follow the language in Letter 4106 , Letter Advising Taxpayer of Department of Homeland Security Notification, and proceed as follows.

  2. Advise the taxpayer that you may notify DHS about the unpaid tax liabilities (which are public record from a previously filed lien), and that subsequently:

    • a Customs and Border Protection Officer may interview him/her when he/she enters the country,

    • the IRS may be advised of the taxpayer's arrival, and

    • the IRS may be provided with information that will enable the IRS to contact the taxpayer.

5.1.12.26.2  (05-20-2008)
TECS Web Page

  1. Access the TECS web page at: http://sbse.web.irs.gov/Collection/Programs/TECS/Default.htm . You can also access the web page by going to the SB/SE Collection web page and clicking on Treasury Enforcement Communications System (TECS).

5.1.12.26.3  (05-20-2008)
The Role of the TECS Coordinator

  1. The TECS Coordinator is a Collection Automation Coordinator (CAC) on the Headquarters staff. The TECS Coordinator:

    • will coordinate the investigation of TECS cases,

    • is responsible for informing SB/SE Collection group managers upon receipt of notifications of imminent taxpayer arrival into the US from Immigration and Customs Enforcement (ICE). ICE notifications are discussed below.

      Note:

      Once the TECS Coordinator notifies a group manager of a taxpayer coming into the country, the GM may need to send an Other Investigation (Ol) using Form 2209, Courtesy Investigation, so the ICE notification can be addressed in a timely manner. See IRM 5.1.8, Courtesy Investigations for procedures on assigning and working these Courtesy Investigations.

    • will review all cases referred from revenue officers requesting that a taxpayer be entered on TECS to ensure that they meet the TECS criteria, and

    • will handle the referred cases as displayed in the following table:

    MCAR Coordinator Action
    If Then
    The case is accepted The TECS Coordinator will:

    • forward the taxpayer information to Treasury for input into TECS, and

    • document the ICS history.
    The case does not meet TECS criteria The TECS Coordinator will:

    • document the ICS history with the reason, and

    • return the referral to the originator.

  2. Contact the TECS coordinator via e-mail at: *SBSE International TECS Coordinator

5.1.12.26.4  (05-20-2008)
Notification by Immigration and Customs Enforcement of Taxpayer Arrival

  1. Immigration and Customs Enforcement (ICE) will notify the TECS Coordinator when ICE becomes aware that a balance due taxpayer on TECS is arriving in the US.

  2. ICE will provide the TECS Coordinator with some or all of the following information:

    • the taxpayer's address while in the United States,

    • nature of visit,

    • transportation of any currency over $10,000.00, and

    • any other available travel and/or asset information.

5.1.12.26.5  (05-20-2008)
Providing Taxpayer Information for Placement on TECS

  1. Be alert for case situations where you can provide information to TECS to facilitate the collection of delinquent liabilities from taxpayers.

    Reminder:

    The reason it is important to enter a taxpayer on TECS is it allows ICE to notify the IRS in the future (via the TECS coordinator) about when and where a taxpayer will be traveling.

  2. Follow the procedures below to request that a taxpayer be entered on or removed from TECS.

5.1.12.26.5.1  (05-20-2008)
Criteria for Entering a Taxpayer on TECS

  1. Taxpayers will be entered on TECS only when the case meets all of the following conditions:

    • The taxpayer is living outside the United States and the United States commonwealths and territories or is about to depart to reside in a foreign country.

      Note:

      Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands are commonwealths or territories of the United States.

      Exception:

      Enter a balance due taxpayer on TECS if, despite an official IRS domestic address of record, you believe the taxpayer resides in a foreign country or travels outside the United States and the United States commonwealths and territories on a frequent basis and we have not been able to contact the taxpayer.

    • The taxpayer has not voluntarily resolved his/her case by full payment or other voluntary action, including an installment agreement (IA).

    • A Notice of Federal Tax Lien (NFTL) has been filed for all balance due modules. See Treasury Regulation § 301.6323(f)-1.

    • The total unpaid balance of assessment equals or exceeds the dollar criteria for requesting a taxpayer be entered on TECS.

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Exception:

      TECS input can also be requested for a lesser amount when your group manager concurs there are significant compliance issues and approves your request.

    • The taxpayer is not in bankruptcy.

    • The IRS has not accepted an Offer in Compromise (OIC) to settle the taxpayer's liabilities.

    • The taxpayer's case is in Status 26 or the taxpayer's case is being reported currently not collectible (CNC) with closing code 06, 03 or 12.

  2. Do not request placement of taxpayers onto TECS if there are only DEL RETs.

    Note:

    TECS is only for taxpayers with BAL DUEs and a Notice of Federal Tax Lien (NFTL) must have been filed for all liabilities.

5.1.12.26.5.2  (05-20-2008)
Procedures for Requesting Entry of a Taxpayer on TECS — Form 6668

  1. Coordinate all requests for entering a taxpayer on TECS with the TECS Coordinator.

  2. Ensure a Notice of Federal Tax Lien (NFTL) has been properly filed for all liabilities.

  3. Use Form 6668, TECS Entry Request, to request that a taxpayer be entered on TECS.

  4. Complete Form 6668 in its entirety.

  5. Save Form 6668 as a PDF file.

  6. Attach the PDF file to an e-mail message to your group manager (GM) to request his/her approval of Form 6668.

  7. Use secure e-mail to encrypt the message since it contains taxpayer data.

  8. Send the secure message to your GM to obtain his/her approval of Form 6668.

    Note:

    The GM will indicate his/her approval by digitally signing the PDF file of Form 6668. Additionally your GM will provide you with a courtesy copy when he/she sends the approved Form 6668 to the TECS Coordinator as provided below (i.e., your GM will include you on the "Cc " line of the message).

  9. Prepare Letter 4106 after your manager approves Form 6668.

    Caution:

    When you are talking with a taxpayer to inform him/her that you will place him/her on TECS or that you have already placed him/her on TECS, do not discuss the existence of TECS with him/her.
    Instead, follow the language in Letter 4106 and only advise the taxpayer that you have notified the Department of Homeland Security (DHS) about the unpaid tax liabilities (which are public record from a previously filed lien) and, subsequently, a Customs and Border Protection Officer may interview him/her when he/she enters the country.
    See IRM 5.1.12.26.1, Do Not Discuss TECS with Taxpayers.

  10. Mail Letter 4106 to the taxpayer.

  11. Retain copies of Letter 4106 and the approved Form 6668 in the case file.

    Note:

    The GM will send the digitally approved PDF file of Form 6668 in an e-mail message to the TECS Coordinator to request that the taxpayer be entered on TECS. The GM will use secure e-mail to encrypt the message since it contains taxpayer data.

    Note:

    The GM will send the secure e-mail message (with the attachment) to the TECS coordinator at: *SBSE International TECS Coordinator to request that the taxpayer be entered on TECS.

    Note:

    The TECS Coordinator will send the taxpayer information to CI; the actual input of the taxpayer data into TECS will be done by CI.

5.1.12.26.5.3  (05-20-2008)
Expedited TECS Entry Procedures

  1. Notify your group manager (GM) to request expedited TECS entry when a taxpayer's arrival in the United States is imminent and the taxpayer is not already on TECS.

    Note:

    A GM, Tax Attache, or Deputy Tax Attache may request expedited TECS entry by making a telephone call to the TECS Coordinator, as long as all the conditions listed above for entering a taxpayer on TECS are met.

5.1.12.26.5.4  (05-20-2008)
Criteria for Removing a Taxpayer from TECS

  1. Remove a taxpayer from TECS promptly, only when the case meets one or more of the following conditions:

    • The tax liability is satisfied.

    • The taxpayer enters into IRS approved arrangements to satisfy the tax liability, including an installment agreement (IA).

    • The taxpayer is deceased and his/her death is verified.

    • The taxpayer's Offer in Compromise (OIC) has been accepted.

      Caution:

      Do not delete a taxpayer from TECS if an Offer in Compromise (OIC) is still under investigation; only an accepted OIC qualifies the taxpayer for removal from TECS.

    • The taxpayer is in bankruptcy.

    • Any other situation renders the continuation of the TECS entry unnecessary.

5.1.12.26.5.5  (05-20-2008)
Procedures for Requesting Removal of a Taxpayer from TECS

  1. Coordinate all requests for removal from TECS with the TECS Coordinator.

  2. Contact the TECS Coordinator immediately by e-mail at: *SBSE International TECS Coordinator if a taxpayer already on TECS should be removed for any of the above case conditions.

  3. Entitle any e-mail message to the TECS Coordinator concerning this topic as "Request To Delete Taxpayer from TECS."

  4. Include the following information in the memorandum:

    1. taxpayer name,

    2. taxpayer identification number

    3. taxpayer date of birth, and

    4. the reason deletion is being requested.

  5. Send the e-mail message to the TECS Coordinator using secure e-mail to encrypt the message since it contains taxpayer data.

  6. Retain a copy of the e-mail in the case file.

    Note:

    The TECS Coordinator will send the taxpayer information to CI; the actual removal of the taxpayer data from TECS will be done by CI.

Exhibit 5.1.12-1 
Suggested Text for Letter to Taxpayer to Apply for Exemption

  1. See IRM 5.1.12.12, Taxpayers Exempt from Taxation for Religious Reasons.

  2. Use Area Office letterhead paper to prepare a letter to notify the taxpayer to apply for exemption.

  3. The following table displays suggested content for this letter.

Suggested Text for Letter to Taxpayer to Apply for Exemption
Letter Content
Name and address of taxpayer)
[Insert appropriate salutation]
Federal tax law exempts members of certain religious sects or divisions from paying self-employment tax if they file an application on Form 4029, Application for Exemption from Social Security and Medicare Taxes and Waiver of Benefits.
We understand you may be eligible for exemption, but we have no record of receiving a Form 4029 from you. If you want to apply for exemption from self-employment tax, please complete the enclosed Form 4029 and return it, with the copy of this letter, by the date shown below. An addressed envelope is enclosed for your convenience.
If we do not receive your application by the date shown, we will have to collect the self-employment tax.
If you have any questions, please contact me at the telephone number shown above.
Thank you for your cooperation.
Sincerely yours,
[Space for signature]
Revenue Officer
Enclosures:
Form 4029
Copy of this letter
Envelope
Last day for filing Form 4029:

Exhibit 5.1.12-2 
Outgoing MCAR Data Sheet

  1. See IRM 5.1.12.25.4, Procedures for Preparing an Outgoing MCAR Request.

  2. Use the information in the following table as a template for preparing a Data Sheet for an Outgoing Mutual Collection Assistance Request.

    Outgoing MCAR Data Sheet
    Data Sheet Content
    (1) Treaty Partner:
    (2) Date:
    (3) Taxpayer Identification Number:
    Do not include the taxpayer's Taxpayer Identification Number (TIN) on this Data Sheet.
    Instead, as directed in paragraph (4) of IRM 5.1.12.25.4, include the TIN in the body of the secure e-mail message.
    See IRM 5.1.12.25.4, Procedures for Preparing an Outgoing MCAR Request.
    (4) Name of Taxpayer:
    (5) Taxpayer’s Address:
    (6) Telephone/Fax Numbers:
    (7) Provide either of the following:
    Date and Place of Birth (individuals):
    Place of Incorporation (corporations):
    (8) Has the taxpayer been identified as potentially dangerous?
    (9) Specify any known income or assets the taxpayer may have in the treaty partner country.
    (10) What is the basis for the liability? Be specific, e.g., tax on return, SFR, unreported income, disallowed items, etc.
    (11) Notice of Federal Tax Lien Filing:
    When:
    Where:
    (12) Delinquent Account Information:
    Type of Unpaid Balance Accruals
    Statute of Tax Period of Assessments
    To:
    Total Due:
    Limitations Date:
    Total:
    (13) Is there any other information that the treaty partner should know?
    (14) Originating Office:
    (15) Name of Originator:
    (16) Originator's Telephone Number:
    (17) Originator's Signature:
    (18) Group Manager's Signature:
    (19) MCAR Coordinator's Signature:
    This information is being provided pursuant to the Income Tax Treaty in force between our two countries. The use and disclosure of this information must be governed by the provisions contained in the Income Tax Treaty.

  3. Follow the instructions in the following table for handling a Data Sheet.

Outgoing MCAR Data Sheet
Data Sheet Instructions
(1) The treaty partners and the types of tax covered are as follows:
- Canada: All Taxes
- Denmark: Income Tax
- France: Income, Estate, & Gift Taxes
- The Netherlands: Income Tax
- Sweden: Income Tax
(5) Include an address where the treaty partner can reach the taxpayer, including sending notices, even if the address is in the United States.
(7) Obtain the date of birth from INOLE-S or obtain the date of birth form MFTRA-U which also provides the place of birth.
(10) Include enough information so that we can explain the assessment to the taxpayer if they raise questions when he/she is contacted by the treaty partner. Identify:
- the income items used for an SFR, or
- the items disallowed, etc., from an Exam Report.

Note:

Include information on the corporation, other officers, etc.

if it is a TFRP assessment - only for a Canadian referral.
(11) File a NFTL before making a referral if appropriate, and include a copy with the referral.
(12) Calculate accruals to 180 days from the date of preparation of the form in item 2.

Note:

Calculate the accruals as of the date of preparation of the form - only for a Canadian referral.

Exhibit 5.1.12-3 
Collection Field Function Processing of Form 5792

  1. Use Form 5792 to request an IDRS manual refund. See IRM 5.1.12.20.1.6, Prepare Form 5792.. In Collection Field function(CFf), the form initiator (i.e., the revenue officer) requesting the manual refund will not complete the entire form because the form initiator will not be the form processor (i.e., the employee inputting CC RFUND). Additionally, Advisory personnel may need to complete certain information on the form.

  2. Use Form 3753, in conjunction with Form 5792, if:

    1. the refund is $10 million or more,

    2. a direct deposit is necessary, or

    3. the module(s) is(are) not on IDRS.

  3. Follow these instructions to properly prepare Form 5792:

Instructions for Form Initiator

  1. Prepare Form 5792 in triplicate.

  2. Complete each block on Form 5792 carefully and ensure all of the entries are legible.

    Note:

    Accounting will reject Form 5792 if the document contains any alterations such as white out, strike through or correction tape. See IRM 21.4.4.5.1 , Monitoring Manual Refunds, for controlling and monitoring requirements.

  3. Follow these line-by-line instructions:

    Section I — Account Information

    1. Block 1: Enter the Taxpayer Identification Number (TIN) and File Source of the account from which the refund will be issued.

    2. Block 2: Enter the Master File Tax Code (MFT).

    3. Block 3: Enter the tax period as YYYYMM. Exception: period ending for MFT 52 is always "000000" .

    4. Block 4: Enter the name control.

    5. Block 5: Leave blank. Campus personnel will enter the TC 840 amount (overpayment, plus allowable interest)

    6. Block 6: Leave blank. Campus personnel will enter the TC 770 amount (allowable interest). If no interest is being computed, campus personnel will enter "0" or ".00"

    7. Block 7: Enter the overpayment amount, (i.e., the amount being refunded, less allowable interest).

    8. Block 8: Enter the appropriate line number; follow these steps to determine the line number:

      1. See Exhibit 12 in IRM 2.4.20, Command Codes RFUND and REFAP.

      2. Locate the MFT code for the applicable form number (i.e., Form 1040, 941, etc.) that corresponds to the MFT code from Block 2.

      3. Locate the row that describes the reason for the refund in the columns entitled:

        1. "Type of Refund"

        2. "Description and Transaction Codes"

      4. Use "Type of Refund" = "Other" when requesting a manual refund of levy proceeds.

    9. Block 9: Enter the interest indicator:

      • Use an "N" for normal interest when interest is payable.

      • Use a "0" (zero) for no interest.

      • Use an "R" for restricted interest.

      Note:

      When requesting a manual refund of levy proceeds there is no interest paid.

      Note:

      If interest will be paid, you must also enter an interest "from" date in Section III. See IRM 20.2, Interest, for interest computations.

      Note:

      If any portion of the overpayment in Block 7 is attributable to a Telephone Excise Tax Refund (TETR), see IRM 21.6.3.5.13, TETR Interest - General Information , for information on TETR interest computations.

    10. Block 10: Leave blank. The Universal Location Code (ULC) (formerly the District Office code) will generate when the RFUND CC is input to IDRS.The form processor (i.e., the person who inputs the RFUND command code to IDRS) will complete this block). See Document 6209, Section 8.23, for a listing of ULCs.

    11. Block 11: Leave blank . The form processor (i.e., the person who inputs the RFUND command code to IDRS) will complete the sequence number.

    12. Block 12: Enter the block series, if needed. Use block series = "3, 4, 6, or 9" to identify why the refund is being issued.

      Note:

      You will use block series 9 in an injured spouse case. In most other cases, you will probably not need to complete this item. The fourth exhibit in IRM 2.4.20, Input Format, CC RFUND, defines some of the block series indicators.

      1. Use block series "3" if the refund is to be issued as the result of a Form 4466 , Corporation Application for Quick Refund of Overpayment of Estimated Tax. Refer to IRM 2.4.20-4 for further information.

      2. Use block series "4" if the refund is to be issued for Taxicab Gas Tax Credits resulting from Energy Legislation. Refer to IRM 2.4.20-4 for further information.

      3. Do not use block series "5" because block series "5" designates a refund returned from FMS.

      4. Use block series "6" if the refund is to be issued pending receipt of reclamation credit from Financial Management Service on a forged check claim. Refer to IRM 2.4.20-4 for further information.

      5. Use block series "9" if the refund is to be issued in an injured spouse case.

      6. Enter a Bypass Indicator (BPI) code of "1, 2, 5, or 6 " in Block 11, Section II, if you use block series = " 9" . See IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI).

    13. Block 13 -18: Enter the name and address of the payee:

      • Print using capital, block letters.

      • Use the ENMOD or INOLES information unless there is a name change, different address, or the refund is being issued to an injured spouse or third party.

      • Do not address the first name line to a deceased taxpayer. Use the name and title, if appropriate, of the person claiming the refund as the payee for refunds issued on decedent accounts.

      Example:

      Jim Jones, Executor - Show a deceased taxpayer's name on the second name line. Use "Dec'd" in the second name after the given name of the deceased taxpayer on a joint account or after the surname of the taxpayer on an individual account.

      Example:

      John "Dec'd" and Jane Doe or John Doe"Dec'd"

      Example:

      1st name line = Jane Doe, 2nd name line = John "Dec’d" and Jane Doe

    14. Block 13 -18: Ensure the address on Form 5792 (and Form 3753, if applicable) matches the address on Master File. Provide an explanation in the Remarks section (i.e., Block 19) when the address does not match.

    15. Block 19: Annotate the specific reason for the refund in the remarks field. Include all pertinent information. Accounting will need to verify the interest dates are correct and the credit is available for refund.

    16. Block 20: Enter the document locator number (DLN) of the return or the credit. Do not use the DLN of an electronically filed return.

      Section II — Manual Refund Authority

    17. Enter the IRM reference in Block 1c and complete all of the other applicable items. Seek Advisory assistance, if necessary:

      • Refer a large dollar manual refund (i.e., $1 million or more) that contains credit interest to Advisory for the interest computation and/or review and approval. See paragraph (4) of IRM 21.4.4.4, Preparation of Manual Refund Forms.

      • Follow these steps when requesting a manual refund of levy proceeds:

        1. Enter "IRM 5.11.2.3.5" in block 1c.

        2. Check all other applicable boxes.

        3. Do not request Advisory review/approval if the refund is under $1 million.

      Section III — Interest Computation

    18. Leave blank unless interest will be paid; follow these steps if interest will be paid:

      1. Enter the interest "From" date. See IRM 20.2, Interest, for interest computations.

      2. Copy and paste the COMPA calculation into the "Remarks " block of Form 5792 (i.e., Block 19, Section I). Campus personnel will compute the interest for the TC 770 amount and enter it in Block 6, Section I. If the COMPA information will not fit in Block 19, paste it into the body of the transmittal e-mail message.

      3. Refer a large dollar manual refund (i.e., $1 million or more) that contains credit interest to Advisory for the interest computation and/or review and approval. See IRM 21.4.4.4(4), Preparation of Manual Refund Forms.

      4. Do not request Advisory review/approval when requesting a manual refund of levy proceeds if the refund is under $1 million.

      Note:

      No interest is paid on a manual refund of levy proceeds. Advisory review/approval is not required when requesting a manual refund of levy proceeds if the refund is under $1 million.

      Section IV — Manual Refund Approval

    19. Block 1: Leave blank. The form processor (the employee inputting CC RFUND) will enter his/her IDRS number.

    20. Block 2-3: Enter your name, employee IDRS number or badge number, and phone number.

    21. Blocks 4, 4a, and 5: Leave blank. The Area Director (AD) will sign in block 4, print his/her name in Block 4a, and enter the date in Block 5. Campus personnel will ensure the Approving Official who signs the refund is on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function.

  4. Review Form 5792 (and Form 3753, if applicable) to verify you completed any necessary IDRS research and completed the form accurately and legibly.

  5. Forward the form to Advisory, if applicable, via secure e-mail.

  6. Secure approval from the group manager (GM), the Territory Manager (TM), and the Area Director (AD). See IRM 5.1.12.20.1.8, Forward the Request for Manual Refund.

    Note:

    The Approving Official (i.e., the AD) will sign in block 4, print his/her name in Block 4a, and enter the date in Block 5. The Approving Official's signature certifies to the Accounting Function that the form was reviewed for accuracy and completeness. Campus personnel will ensure the Approving Official who signs the refund is on the Authorized Signature List maintained by the Manual Refund Unit in the Campus Accounting Function.

  7. Forward Form 5792 (and Form 3753, if applicable), to the Manual Refund Function for processing via secure e-mail. See IRM 5.1.12.20.1.8, Forward the Request for Manual Refund.

    Note:

    Accounting will validate the CC RFUND input with CC REFAP. The boxed entries on Lines 13, 17, and 18 of Form 5792 are primarily used to validate with CC REFAP. If the data inputs for both CC RFUND and CC REFAP do not match, the TC 840 will unpost. See IRM 3.17.79.4.2 , RFUND/REFAP Mismatch .

Instructions for Advisory Personnel

Section I

  1. Ensure the form initiator made all the necessary entries on Form 5792 (and Form 3753, if applicable) appropriately and correctly; make corrections to the form(s), if necessary.

    Section II

  2. Ensure all applicable boxes are checked, including the IRM reference in Block 1c; make corrections to the form(s), if necessary.

    Section III

  3. Confirm the form initiator entered the correct "From" date, if applicable. Campus personnel will compute all the interest for the TC 770 amount, if applicable, and will enter the TC 770 amount (allowable interest) in Block 6, Section 1.

    Section IV

  4. Ensure the form initiator appropriately completed his/her name, employee IDRS number or badge number, and phone number in Block 2-3; make corrections to the form(s), if necessary.

  5. Review Form 5792 (and Form 3753, if applicable) to verify that:

    1. the manual refund is appropriate,

    2. proper IDRS research was completed, and

    3. the form(s) was(were) completed accurately and legibly.

  6. Forward Form 5792 (and Form 3753, if applicable), to the revenue officer, via secure e-mail, to secure approval from the GM, the TM, and the AD.

Instructions for Form Processor

  1. The form processor will follow the applicable campus procedures.


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