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Part 5. Collecting Process

Chapter 1. Field Collecting Procedures

Section 18. Locating Taxpayers and their Assets

5.1.18  Locating Taxpayers and their Assets

5.1.18.1  (05-20-2008)
Overview — Locating Taxpayers and their Assets

  1. This IRM section describes the various locator tools and sources available to Collection Field function (CFf) employees to facilitate locating taxpayers and/or their assets and also provides procedures to help protect taxpayer privacy when using these sources:

    1. Locator Tools include the types of sources available to employees, such as the DMV, US Postal Service, Credit bureaus, etc.

    2. Locator Sources include the Intranet and Internet sources available to employees for locating taxpayer assets.

  2. The procedures are specifically for revenue officers due to the complex nature of the collection cases assigned to them, although other employees in SB/SE and employees in other functions may also refer to these procedures to locate taxpayers and/or their assets.

  3. These procedures guide revenue officers on how to research public records in-person or online to locate taxpayers and/or their assets. In general, this IRM does not provide specific case dollar criteria for using the locator sources. Some of the locator sources do include Official Use Only (OUO) specific criteria; the criteria is embedded within the applicable IRM content.

5.1.18.2  (05-20-2008)
Locator Services Program

  1. Locator services are those automated or manual services that assist employees in locating taxpayers and/or their assets. The goal of the Locator Services Program is to expand and automate effective locator services.

  2. Locator Services include (but are not limited to) the following:

    • the national asset locator tool (Accurint at the time of publication of this IRM)

    • the credit bureau web browser (Smart.Alx at the time of publication of this IRM)

    • the tax research portal (LexisNexis® at the time of publication of this IRM)

    • Department of Motor Vehicles (DMV)

  3. Case Diagnostic Tools include (but are not limited to) the following:

    • Title Reports

    • Uniform Commercial Code (UCC)

    • Corporate Information — Secretary of State

    • Employment Development Department (EDD)

  4. Headquarters is responsible for providing leadership, support, assistance, technical expertise, funding, and oversight for all CFf locator service activity nationwide and is also responsible for allocation of resources to the area offices for maintaining current local locator services.

  5. Elevate any concerns about the administration of the Locator Services Program to Headquarters via your local management.

5.1.18.2.1  (09-17-2010)
Locator Services Security Considerations

  1. Security guidelines providing for the maintenance, protection, and confidentiality of information are set forth in IRM 1.2.1 , Policies of the Internal Revenue Service. The applicable disclosure, privacy, and third-party contact procedures apply when using the various locator sources. The use of IRS locator services is for"Official Use Only."

  2. Comply with the existing security and legal regulations regarding access to taxpayer data/information when you access taxpayer data, including locator services information:

    1. IRM 5.1.18.2.1.1.

    2. IRM 5.1.18.2.1.2.

    3. IRM 5.1.18.2.1.3.

5.1.18.2.1.1  (09-17-2010)
Disclosure

  1. All information collected by the IRS with regard to collecting tax liability is protected by IRC § 6103, Confidentiality and Disclosure of Returns and Return Information; any disclosure must meet IRC § 6103 standards.

  2. Analyze each such disclosure on a case-by-case basis to ensure the disclosure is necessary to obtain the information contained in the desired report (e.g., a report from the national asset locator tool or a credit report), as follows:

    1. Is the specific return information disclosed limited to the minimum information necessary to obtain the report?

    2. Is the return information from our BAL Due or lien files?

    3. Is the information in the desired report not otherwise reasonably available from other sources?

  3. Follow the disclosure procedures when you use the various locator sources.

    1. IRM 5.1.22, Disclosure .

    2. See IRM 11.3.21, Investigative Disclosure, including IRM 11.3.21.8, Internet Research, for guidance on conducting research on the internet.

5.1.18.2.1.2  (09-17-2010)
Privacy

  1. The Privacy and Information Protection (PIP) Office is responsible for ensuring the privacy and protection of taxpayer and employee information. PIP manages the Service's process for responding to the loss of Personally Identifiable Information (PII) and the potential for identity theft. There are three offices under PIP:

    1. Office of Privacy

    2. Identity Protection

    3. Incident Management

  2. Follow the applicable privacy procedures when you use the IRWeb Intranet search engine and the various locator sources .

  3. See IRM Part 10, Security, Privacy and Assurance, including:

    1. IRM 10.2.13, Information Protection, for guidance on protecting tax information.

    2. IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance, for a discussion of Sensitive But Unclassified (SBU) Information in IRM 10.8.1.3.1.1.1 , Sensitive But Unclassified (SBU) Information, and Personally Identifiable Information (PII) in IRM 10.8.1.3.1.1.2, Personally Identifiable Information (PII).

5.1.18.2.1.3  (09-17-2010)
Third-Party Contacts

  1. Follow the procedures in IRM 5.1.17, Third-Party Contacts, as it pertains to respecting taxpayer rights in accordance with IRC § 7602(c), Notice of contact of third parties, when you use the various locator sources.

5.1.18.2.2  (09-17-2010)
Asset Locator Research

  1. Employees are required to research public records in-person or online to locate taxpayers and/or their assets. The Service maintains contracts for asset/locator services, credit bureau services, and tax law research services which are managed by Servicewide Policy, Directives, and Electronic Research (SPDER). The SPDER web site is available at this link: http://spder.web.irs.gov

  2. IRS employees who work tax-related matters are expected to use the contracted subscription search services to obtain information about a tax case or taxpayer. SPDER manages the national asset locator tool which provides easy access to public records such as real estate transactions, real property, corporate officers, vehicles, and aircraft, as well as information on people and businesses. The national asset locator tool will allow you to research public records data and perform nationwide research on your taxpayer.

  3. The types of information accessible through this tool includes public records such as:

    • real property,

    • real estate transactions,

    • corporate officers,

    • vehicles, and aircraft

    • information on people and businesses

    Note:

    At the time of publication of this IRM revision, the current contract vendor is LexisNexis®, and the national asset locator tool is Accurint.

5.1.18.2.2.1  (09-17-2010)
Using the Online National Asset Locator Tool

  1. The national asset locator tool requires a user name and a password for access.

  2. Request your group manager (GM) to send an e-mail message including your name and SEID to the SB/SE Accurint Staff at: *SBSE Accurint Staff to secure an ID and password for you. Your user name and password will be sent to you via e-mail.

  3. Use your user name and password to access the national asset locator tool through the Intranet.

  4. Research public records data and perform nationwide research on your assigned taxpayer(s). The information on the Internet can assist you in locating taxpayers and/or their assets and should be considered as a supplement to the national asset locator tool. IRM 5.1.18.3.

5.1.18.2.2.2  (09-17-2010)
Use of Asset Locator Research Results

  1. IRM 5.1.18.12. It provides information on verifying a taxpayer address, the appropriate use of postal tracers, and an example about sending an appropriate contact letter.

  2. Use any new asset information received from asset locator research to attempt to resolve the account, as applicable:

    1. Work with the taxpayer to resolve the account.

    2. Take appropriate enforced collection action, if necessary.

    Caution:

    Information from the national asset locator tool is not considered adequate to verify a taxpayer's ownership interest when the IRM requires a complete public records search. See paragraph (4) of IRM 5.10.1.3.3, Equity Determination . A search of the actual courthouse records or other official governmental records (official, legal recordation sites such as Department of Motor Vehicles (DMV), Federal Aviation Administration (FAA), etc.) is required to verify the accuracy of the information obtained from the national asset locator tool prior to taking any enforced collection.

5.1.18.2.2.3  (09-17-2010)
Training on the Use of Locator Services

  1. Managers are responsible for ensuring employees:

    1. have access to the tools needed to perform the job effectively

    2. receive the training required to use the tools effectively

    Note:

    Collection management will work with Learning & Education (L&E) personnel to ensure that appropriate locator services related topics are adequately covered in Collection CPE sessions.

  2. Training is provided on software programs from the following organizations:

    1. Functional Automation Support (FAS) provides training for software programs used by Collection Field function (CFf) employees to facilitate effective use of the various locator services.

    2. Servicewide Policy, Directives, and Electronic Research (SPDER) provides information on all the locator services training products on their web site at: http://spder.web.irs.gov.

5.1.18.2.2.4  (09-17-2010)
Locator Services Support

  1. Functional Automation Support (FAS) provides automation technical support, system issues troubleshooting, and training for software programs used by Collection Field function (CFf) employees.

  2. The primary programs supported by FAS include:

    • Case Diagnostic Tools

    • Locator Services.

  3. Collection Automation Coordinators (CACs) are professional employees who are subject matter experts (SMEs) for the case diagnostic tools and locator services. The CACs responsibilities include the following:

    • ensure automation programs and management applications are compatible with all technical, legal, and administrative provisions

    • complete analytical reviews

    • develop reports, memoranda, and decision packages

    • coordinate and conduct training

    • act as liaison with other functions at Headquarters, the Areas, and MITS

  4. Functional Automation Coordinators (FACs) are technical employees who provide administrative support to the Area CACs. The FACs responsibilities include the following:

    • oversee OL 5081 applications

    • support commercial off-the-Shelf (COTS) software

  5. Contact the appropriate Collection Automation Coordinator (CAC) or Functional Automation Coordinator (FAC) in FAS if you require assistance, support, or training.

  6. Use this link to access the FAS web site: http://fas.web.irs.gov/

    Note:

    FAS also supports infrastructural systems (other applications) as well, including Automated Trust Fund Recovery (ATFR), Integrated Collection System (ICS), and ENTITY, but these system/applications are not locator services, so the FAS support for infrastructural systems is not discussed in this IRM section.

5.1.18.2.2.5  (09-17-2010)
Procurement of Locator Services

  1. Functional Automation Support (FAS) provides procurement support. Generally, the Functional Automation Coordinator (FAC) or the Collection Automation Coordinator (CAC) is responsible for requisitioning specific locator services and related equipment. The responsible procurement office will provide any necessary procurement assistance. "Local" contracts may still be required for data that is unavailable from the national contract vehicles.

  2. FAS supports local locator service contracts such as contracts with the state for employment and DMV information as well as title report contracts. FAS inputs the annual contract renewals and completes the monthly, quarterly, or annual "Receipt and Acceptance." Some contracts require automation support to connect from the IRS network to the vendor network. In these cases, FAS has acted as a facilitator between MITS, Mission Assurance, and the end users to ensure the setup, installation, and testing of software when necessary. In some cases, based on requests from the Area, FAS will locate new vendors, secure contracts for services, etc. FAS will support end users on the use of national locator services contracts as well as use of the local contracts.

  3. Refer to IRM 1.4.5, Corporate Tax Administration Tools, when considering any procurements. It provides helpful information regarding the background on the corporate delivery of electronic research services, an overview of each corporate tax administration tool, how to access them, and the related training products that are available.

  4. Use this link to access the FAS web site: http://fas.web.irs.gov/

5.1.18.2.2.5.1  (09-17-2010)
Enforcement Purchase Card

  1. As a revenue officer directly involved with enforcement activity, you are authorized to receive a Purchase Card (Enforcement Purchase Card) that is restricted to enforcement related buys.

  2. See IRM 1.32.6, Purchase Card Program Handbook.

  3. See IRM 1.32.6.6.2, Enforcement Card.

5.1.18.3  (09-17-2010)
Performing Research on the Internet / Intranet

  1. The decision regarding whether to use the Internet to locate taxpayers and/or their assets must be based on the particular aspects of the case, just as you would make any other decision to use any other collection tool. You should apply a strategic approach to casework and consider the different aspects of each case such as the size of the liability, complexity of the case, compliance history, and the cooperation level of the taxpayer to determine the applicable extent of locator research.

  2. The Internet is a powerful tool for gathering information about individuals and businesses. There are vast resources available on the Internet and a great amount of information is available free of charge although many web sites charge a usage fee or provide information on a subscription basis.

  3. The Service has current corporate contracts for locator services, credit bureau services, and tax law research services. These services are managed by SPDER. SPDER provides IRS employees with Internet / Intranet access on an as-needed basis. Whenever possible, IRS employees who work tax-related matters should use the contracted subscription search services to obtain information about a tax case or taxpayer. These services include:

    • the national asset locator tool — Accurint (at the time of publication of this IRM)

    • the credit bureau web browser — Smart.Alx (at the time of publication of this IRM)

    • the tax research portal — LexisNexis® (at the time of publication of this IRM)

  4. Access the IRS Intranet Home Page at this link: http://irweb.irs.gov/

  5. You can use the Internet / Intranet to help you do the following:

    1. locate taxpayers or their assets

    2. understand various types of businesses

    3. understand various types of property ownership

    4. confirm/validate the information taxpayers have provided to you

  6. Consider the following factors to decide whether you should use the Internet include:

    1. Cooperation level of taxpayer

    2. Type of liability and entity

    3. Size of liability

    4. Case Complexity

    5. Results of financial analysis

    Note:

    This list is not all-inclusive.

  7. Follow the steps below if the information you seek is not reasonably available through the contracted subscription search services.

    1. Use discretion and consider on a case-by-case basis what return information or PII needs to be entered when using public Internet search engines (for example, name, address, telephone number, or Taxpayer Identification Number (TIN)).

    2. Secure managerial approval before conducting an Internet search on a TIN.

      Note:

      A telephone number search will probably provide more useful information than a TIN search. IRM 11.3.21.8 provides that the disclosure of a TIN is sensitive and should be carefully considered. A search on a TIN is allowable if necessary. You can perform a search using a TIN, but a search on an EIN or an SSN rarely results in any useful information.

  8. Refer to the following IRMs for further guidance:

    1. IRM 5.1.30, Strategic Approach to Casework, for further guidance on the searching the Internet by case type.

    2. IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance, which provides security policies to be followed by all IRS organizations and discusses Sensitive But Unclassified (SBU) Information and Personally Identifiable Information (PII).

    3. IRM 11.3.21.8, Internet Research, which allows the disclosure of return information with respect to Internet searches when you reasonably believe, based on the facts and circumstances at the time of the disclosure, such disclosure is necessary to obtain information to properly perform your official duties.

  9. Enhance your case processing skills by performing effective Internet research in an interactive mode to receive current and historical data about your taxpayer.

    1. IRM 5.1.18.3.1.

    2. IRM 5.1.18.3.2.

    3. Refer to the E-Business and Emerging Issues (EBEI) web site for information on helpful internet sites and tips on using the Internet effectively at: http://e-commerce.web.irs.gov/

5.1.18.3.1  (09-17-2010)
Collection Web Site

  1. Access the Collection web site directly at: http://sbse.web.irs.gov/Collection/

  2. Find the Collection web site by following these links:

    • "IRWeb" — http://irweb.irs.gov/

    • "Business Units" — http://irweb.irs.gov/AboutIRS/bu/default.aspx

    • "Small Business/Self-Employed (SB/SE)" — http://mysbse.web.irs.gov/

      Note:

      Click on the fifth minor bullet "Small Business/Self-Employed (SB/SE)" under the second major bullet "Deputy Commissioner for Services & Enforcement Organization. "

    • "Collection" — http://sbse.web.irs.gov/Collection/

      Note:

      Click on the sixth link "Collection" in menu in the upper left-hand corner of the "MySB/SE" page.

  3. The Collection web site is divided into a number of separate sections, including the following, which provide many links to helpful information.

    • Collection News

    • Computer Applications

    • Collection Programs

    • Collection Research

  4. Become familiar with the helpful information available on the Collection web site including the following links:

    • "Investigative Techniques and Sources" — provides industry and profession specific information to facilitate case resolution,

    • "Quick Index to Collection IG Memoranda" — provides Interim Guidance Directives.

    • "Collection Program Letter" — provides the current SB/SE Collection Program Letter.

    • "Ask Collection Policy" — secure technical clarification of procedures currently in the IRM or raise issues that need clarification in future IRM updates.

    • "E-Business" — this link will take you to the "E-Business and Emerging Issues" page. Click on " Collection Corner" (listed on the menu on the left-hand side of the page).

  5. Consider adding the Collection page to your list of " Favorites"

5.1.18.3.1.1  (09-17-2010)
Interim Guidance Directives

  1. Sometimes Headquarters will issue an Interim Guidance (IG) Memorandum (memo) to provide the most up-to-date guidance about a particular subject.

  2. Access the Small Business/Self Employed Cross-Functional Program Management Interim Guidance Directives at: http://sbse.web.irs.gov/MS/IGMemos/default.asp

  3. Determine if an IG Memo provides more up-to-date guidance about a particular subject when you search the IRM.

  4. Consider adding the Interim Guidance Directives page to your list of "Favorites"

5.1.18.3.2  (09-17-2010)
E-Business and Emerging Issues Web Site

  1. The E-Business and Emerging Issues Web Site (EBEI) web site contains helpful information such as a training link to e-commerce related courses and an "Ask the Expert" connection which enables you to ask the EBEI staff questions. Additionally, the EBEI web site provides information especially for Collection in the "Collection Corner."

  2. Locate the blue menu box on the left-hand side of the EBEI web site. It provides a menu item entitled the "Collection Corner."

  3. Place your cursor on "Collection Corner" to reveal a drop-down menu with the following items:

    • Summons/Levy — covers types of Internet third party record keepers, sample summons wording, contact information for serving summonses/levies

    • Internet Tools — covers how to use the various tools available to find web sites, determine web site ownership, locate taxpayers, etc.

    • Search Engines — provides information about the most popular search engines and tips on how to effectively use advance search techniques

    • Payroll Cards — provides information about how payroll cards work and a Counsel opinion regarding payroll card levies

  4. Consider adding the EBEI page to your list of "Favorites "

5.1.18.3.3  (09-17-2010)
Corporate Tax Law Research Tools

  1. The Service has current corporate contracts for tax and legal research services. These services are managed by Servicewide Policy, Directives, and Electronic Research (SPDER). SPDER provides IRS employees with the following:

    1. an up-to-date, searchable web-based version of the Internal Revenue Manual (IRM)

    2. primary and secondary Federal tax resources, news, business, and legal sources

  2. These electronic research services are fully linked to cited references which allow access to all tax law research material from one place.

    Reminder:


    Although you could perform tax and legal research using a search engine (such as Google, MSN, Yahoo, or AOL), you should use the commercial electronic research services provided by the Service. The trustworthy sources provided by the Service (such as CCH, LexisNexis®, or Westlaw at the time of publication of this IRM) yield more credible results upon which you can base your tax administration decision. The vendors stake their livelihood on accuracy and timeliness of their material and their editors, researchers, and attorneys ensure the authenticity of the content so you can be confident you can rely upon the information they provide.

  3. Follow the steps below if the information you seek is not reasonably available through the contracted subscription search services.

    1. Use discretion and consider on a case-by-case basis what return information or PII (i.e., name, address or Employer Identification Number) needs to be entered when using public Internet search engines.

    2. See IRM 11.3.21.8, Internet Research.

5.1.18.4  (05-20-2008)
Real Property Records

  1. Real property records are a critical source for locating taxpayers and their major assets. Real property records are currently available for all the states and the District of Columbia through the national asset locator tool.

    Exception:

    Due to contractual restrictions, real property records are not currently available for Maine through the national asset locator tool.

  2. In some states, and especially in large metropolitan areas, the real property records are available electronically from the courthouse without going through a third-party vendor.

  3. Although many real property records are available online, real property records are not completely automated. Furthermore, electronic real property research may only provide limited coverage and are subject to other limitations, such as:

    1. The locator vendor may provide electronic coverage of a particular state, but not every county in that state.

    2. The electronic grantee/grantor indexes may not be sufficient to determine how ownership in a piece of property occurred or was conveyed.

    3. The public records data in third-party vendor electronic systems may contain errors due to erroneous data entry, incorrect processing, out-dated, or otherwise defective.

  4. Some collection areas have been able to arrange for direct data base access where courthouse records are automated, but such arrangements may be complicated by the varying systems encountered from one county/city to the next. IRM 5.1.18.2.2.5.

  5. Search real property records as provided in your area, either in-person or online, according to the following procedures.

5.1.18.4.1  (05-20-2008)
Courthouse Records Check

  1. Perform a courthouse records check:

    1. online if you have access to the appropriate online tools, or

    2. in-person when you do not have access to the appropriate online tools.

  2. Make a field visit to perform a courthouse records check in-person prior to a seizure. See IRM 5.10.1.3.3, Equity Determination.

  3. Treat all data secured from locator services as sensitive but unclassified (SBU) data.

  4. IRM 5.1.18.2.2.2.

5.1.18.4.1.1  (09-17-2010)
Electronic Access to Actual Courthouse Records

  1. Complete a real property records search electronically if you have the ability to research both the index and the actual documents online.

    Note:

    Researching actual property tax records online is not considered a courthouse real property records search, so an online property tax records search would not be sufficient prior to a seizure of real property. The property tax appraisal office maintains the tax records, not the office of the county clerk. The property tax records only show who owned the property when the property tax statements were sent out.

  2. Make a field visit and perform a courthouse records check in-person prior to a seizure of real property

5.1.18.4.1.2  (09-17-2010)
Electronic Access to Third-Party Vendor Records

  1. Complete a real property records search electronically if you have access to the records via a third-party vendor.

    Note:

    Researching third-party vendor property tax records online is not considered a courthouse real property records search so an online property search of third-party tax records would not be sufficient prior to a seizure of real property.

  2. Do not rely upon third-party vendor electronic sources as definitively accurate; be wary of their limitations.

  3. Make a field visit and perform a courthouse records check in-person prior to a seizure of real property

5.1.18.4.2  (09-17-2010)
Title Reports

  1. Title reports provide the following information:

    • Liens and Judgments — Listing of recorded property liens, tax certificates, and claims against the property.

    • Legal — Full real estate legal description.

    • Current Owner — Identification of the actual owner of the subject property and ownership structure (i.e., joint, individual, trust, etc.)

    • Purchase Price / Date — Reveals what the current owners paid, seller information, and deed document details.

    • Mortgage Amount — Mortgage details for open loans against the property with lender name, amounts, and dates. Copy of current deed showing conveyance with abstract of all current liens, mortgages, and recorded documents.

  2. Secure a title report as provided in your area.

    Note:

    The Area office establishes procedures for obtaining title reports. Functional Automation Support (FAS) provides administrative support for tile report service contracts; however, FAS does not provide interpretation of title reports.

  3. IRM 5.1.18.2.2.2.

5.1.18.5  (05-20-2008)
Department of Motor Vehicles

  1. All states and the District of Columbia have a department or office of motor vehicles (DMV). DMVs require state residents who own a motor vehicle to register their motor vehicle and require state residents who drive a motor vehicle to hold a valid driver license.

  2. In addition to driver licenses, motor vehicle departments issue identification (ID) cards to persons who require an ID card. The ID card looks like a driver license, but is used for identification purposes only.

  3. Information maintained by the various motor vehicle departments varies from state to state. Most states provide driver information, lien holders, and vehicle information on cars, trucks, etc. ID card information is also provided.

  4. Information from 25 state motor vehicle departments is currently available through the national asset locator tool at the time of publication of this IRM. Due to contractual and regulatory restrictions, some states are not available, and it is illegal to make this information public in some other states.

  5. Some collection areas have been able to arrange for direct data base access to motor vehicle records. Check your local procedures.

  6. IRM 5.1.18.2.2.2.

5.1.18.6  (09-17-2010)
Uniform Commercial Code

  1. National Uniform Commercial Code (UCC) filing records contain information from commercial lien filings. These records can help you find assets used by businesses to secure commercial loans or to learn about financial relationships between businesses and individuals. The results include:

    • debtor name and address

    • date and state of filing

    • document number

    • legal type

    • secured parties name and address

    • number of secured parties

    • number of debtor parties

    • number of filings

    • list of collateral

  2. Uniform Commercial Code (UCC) information is currently available for all the states and the District of Columbia through the national asset locator tool.

    Note:

    The national locator tool may not have the latest information; at times, the information is weeks or months old. For purposes of conducting an adequate UCC search prior to a seizure of personal property, a search of the national asset locator tool is not considered an adequate UCC search.

  3. Use the "UCC Filings" tab in the national asset locator tool to conduct your search.

  4. Use any of the search criteria provided in the"UCC Filings " template.

  5. Conduct a search of the UCC records held by the official governmental record keeper prior to a seizure of personal property.

    1. Go to the governmental recording office and search the official UCC records.

    2. Contact the governmental recording office by mail (or by phone, if permitted by the governmental recording office) to obtain the official UCC records.

  6. IRM 5.1.18.2.2.2.

5.1.18.7  (09-17-2010)
Corporate Information — Secretary of State

  1. Corporate information refers to each individual state's Secretary of State, State Corporation Commission, or equivalent. These organizations provide information regarding the date of incorporation and the officers of the corporation.

  2. All states and the District of Columbia require that corporations register at the time of their incorporation, and the registration information is usually maintained in each state's capital. Secretary of State information is one of the most effective sources available for corporate accounts. It provides third party information, corporate officers, and registered agents, and is also fairly effective for verifying the existence of assets. However, the effectiveness of Secretary of State information varies from one state to another based on the method used to access the information.

  3. Secretary of State information is currently available for all the states and the District of Columbia through the national asset locator tool at the time of publication of this IRM with one exception.

    Exception:

    Due to contractual restrictions, Secretary of State information is not currently available for Delaware through the national asset locator tool. Revenue officers in the Dover, Delaware commuting area can make a field visit to the state office where visitors are permitted free access to the on-site computers provided and are allowed to write the information down free of charge. Revenue officers outside of the Dover, Delaware commuting area can access the Secretary of State of Delaware at: http://www.corp.delaware.gov/ to secure corporate information online for a fee charged to the employee's Enforcement Purchase Card. At the time of publication of this IRM, the fee is $10.00 per entity for status or $20.00 per entity for more detailed information including current franchise tax assessment, current filing history, and more. See IRM 1.32.6, Purchase Card Program Handbook.

  4. Use the corporate information received from the Secretary of State research to assess the Trust Fund Recovery Penalty (TFRP), if applicable.

5.1.18.7.1  (05-20-2008)
Limited Liability Company Information — Secretary of State

  1. Limited Liability Company (LLC) Information is maintained by each individual state's Secretary of State, or equivalent, often in the same database as corporation records. These organizations provide information regarding the date of organization and the members and/or managers of the LLC.

  2. Information available from state records may assist you in identifying if a taxpayer is liable for certain employment taxes. See IRM 5.1.21, Collecting from Limited Liability Companies , for additional information.

5.1.18.8  (05-20-2008)
Employment Development Department

  1. The Employment Development Department (EDD) is a state agency, and in some states the agency name is different (the name changes from state to state). EDD provides secure information regarding the payroll information supplied by employers who have filed with the state.

  2. EDD information is especially useful when an employer may have filed state employment tax returns but not federal employment tax returns. Information includes number of employees, payroll, etc. The various state employment commissions (EC) have proven to be some of the best available sources of wage levy data. Access to these sources has been greatly enhanced by on-line vendor access and tape-to-tape exchange programs. These levy sources are very effective because the information is updated quarterly.

  3. Use IDRS command code ECREQ to request employment data from the specific states participating in the employment commission (EC) programs.

5.1.18.9  (05-20-2008)
State Employment Commission Program — Tape Exchange Agreements

  1. The State Employment Commission Program involves tape exchange agreements between areas and the states. Every two weeks, a tape containing a file of all IMF taxpayers in fourth notice status is mailed to participating states by the responsible service center campuses. The controlling location code of the taxpayer determines to which state the taxpayer's record is sent.

  2. This tape contains records for both primary and secondary Social Security Numbers (SSN). The state matches the SSN on the tape with those on its employment commission (EC) data base. For each SSN on the tape, the state will return at least one record, but, in many instances, multiple records may be returned, depending on how many quarters of information the state's database contains.

    IF THEN NOTES
    a. No records exist for the SSN, a"no-match" record will be returned. No levy source record is created on IDRS for a no-match record.
    b. A record exists for the SSN, a matched record will be returned including the names and addresses of the taxpayer's employers. For each matched record returned, a levy source record is created on IDRS.
    c. IDRS shows that this levy source, as identified by the Employer's Identification Number (EIN) or state identification number, duplicates one previously sent, it will be dropped. The levy source record will identify whether the levy source belongs to the primary or secondary SSN.

  3. When a balance due account (BAL DUE) is passed to ACS, all levy source records on IDRS are forwarded automatically. If for any reason the return tape is processed after the case goes to ACS, the EC levy source will be forwarded to ACS at the next update.

  4. Use CC LEVYS to obtain EC information already received from participating states. See IRM 5.11, Notice of Levy.

  5. Use any new address or new asset information received from researching CC LEVYS as discussed above. IRM 5.1.18.2.2.2.

5.1.18.10  (05-20-2008)
Utility Companies

  1. Utility company information can help to locate a taxpayer.

  2. Often, taxpayers attempting to hide from the IRS and other creditors do not notify the post office of a new address. However, taxpayers generally will transfer their utility service from an old address to their new one, so when a taxpayer moves within an area served by the same utility company, the taxpayer will provide an updated address to the utility company. See IRM 5.1.18.13.2, Postal Tracer — Form 4759,for information on the use of postal tracers to verify these addresses.

  3. Utility information can help determine who occupies a certain building when there is an indication that the taxpayer resides at an address, but the post office and other locator sources do not provide confirmation. The utility company can provide the name of a person billed for the utility services.

    Note:

    If you provide a name and address to the utility company in person, by mail, or by phone, the utility company will probably be able to confirm the name of the person billed for the utility services in response to your request for confirmation without a summons.

  4. Summons the utility company to obtain the taxpayer's new address, when necessary — provide the taxpayer's name and last address in the summons.

  5. Use any new address or new asset information from the utility company as discussed above. IRM 5.1.18.2.2.2.

5.1.18.11  (09-17-2010)
Social Security Administration

  1. Sole proprietors, corporations, partnerships, estates, trusts, and other entities use Form SS-4, Application for Employer Identification Number, to apply for an employer identification number (EIN).

  2. In the past, the IRS sent Forms SS-4 to the Social Security Administration (SSA), SSA maintained the records, and IRS employees could request a copy of a specific form. However, with the advent of weekly electronic transmissions of Form SS-4 data to SSA, the IRS no longer sends the forms to SSA.

  3. Contact SSA to obtain a copy Form SS-4 for years 1998 and prior, as needed. See IRM 21.7.13.3.2.12, Requests for Copies of Form SS-4.

  4. Do not contact SSA regarding any Form SS-4 processed after 1998.

  5. Use any new address or new asset information from SSA research as discussed above. IRM 5.1.18.2.2.2.

5.1.18.12  (09-17-2010)
United States Postal Service

  1. The United States Postal Service (USPS) provides an address update product — the National Change of Address Linkage (NCOALink).

  2. The IRS is a licensee of NCOALink, and receives a consolidated data file with change-of-address information from the USPS on a regular basis to help deliver tax related mail in a timely fashion and reduce undeliverable mail. The Service benefits from the NCOALink address update process by using the new addresses to attempt contact and/or maintain contact with taxpayers.

  3. When the USPS receives a change of address form from a taxpayer with a new address, the IRS will receive that new address. The process works as follows:

    1. NCOALink obtains change of address information when a taxpayer submits a change of address to the USPS.

    2. The IRS receives a weekly NCOALink file from USPS. The file contains all of the reported changes of address in the United States for the week.

    3. NCOALink will attempt to match the NCOALink file to the Master File address for any change of address form filed in the past 48 months.

    4. The "name" and "from" address must match what is on IDRS for the "to" address to be updated as the new address for a taxpayer.

    5. The Master File is updated for all matched addresses.

    Note:

    The only time the address of a taxpayer updates through NCOA Link is when the taxpayer submits a change of address form to USPS. Then, and only then, will NCOALink update the taxpayer’s address from one location to another.

  4. NCOALink substantially reduces the need for using a postal tracer — Form 4759, Address Information Request - Postal Tracer, to obtain new addresses for most taxpayers.

    Note:

    NCOALink does not eliminate the need for using Form 4759.

5.1.18.12.1  (09-17-2010)
How to Identify an NCOA Address Change

  1. An address change resulting from the NCOALink update generates a unique Transaction Code (TC) 014 (Address Change) and document locator number (DLN):

    All DLNs created by NCOALink have a common DLN format:

    • IMF — XX 2 63 995 999 99 Y

    • BMF — XX 9 63 995 777 66 Y

    • EPMF — XX 0 63 995 777 66 Y

      Note:

      "XX" represents the File Location Code (Internal Revenue Service Campus (IRSC) Code). "Y " represents the year of the NCOALink update.

5.1.18.12.2  (09-17-2010)
Postal Tracer — Form 4759

  1. The only appropriate use of Form 4759 is to request information from USPS. Form 4759 may be used to:

    • Obtain the physical address of a Post Office (PO) Box holder.

      Caution:

      Form 4759 applies only to a PO Box rented from USPS; it does not apply to a mailbox rented from any of the various other places that rent private mailboxes.

    • Verify possible non-Master File addresses.

    • Request directions to an address.

    • Confirm the Master File address of record when a field call verifies that the taxpayer is UTL or UTC at that address.

  2. NCOALink substantially reduces the need for using Form 4759 but does not eliminate the need for using Form 4759. You may obtain valuable information in response to Form 4759 which may not be included on returned mail:

    1. the change of address date,

    2. the forwarding order expiration date, and/or

    3. expired forwarding address(es).

  3. Form 4759 is helpful as USPS will:

    • Provide the forwarding address on returned mail for 12 months.

    • Confirm whether mail is delivered to the taxpayer at that address.

    • Provide the new address if the address was changed within the past 48 months.

  4. USPS mail carriers may provide additional useful information. The carrier may annotate the returned correspondence with an extra note, such as "moved two years ago," "gone for over five years, " or other information that will assist you in establishing the "timeline" of various addresses. USPS will:

    • Provide the forwarding address on returned mail for 12 months.

    • Provide the forwarding address for 48 months in response to Form 4759.

  5. USPS will take one of following actions when you send correspondence to one or several alternate addresses:

    1. Forward the correspondence to the taxpayer but not send you notification of a new address.

      Note:

      Form 4759 may be helpful since it may provide new address information (if mail was forwarded) or confirm whether mail is delivered to the taxpayer at that address.

    2. Return the correspondence to you with the annotation "Forwarding order expired," if it has been more than 12 months since the forwarding order was filed.

      Note:

      Form 4759 may be helpful because it may provide the new address if the address was changed within the past 48 months.

    3. Return the correspondence to you with the annotation " Moved, left no forwarding."

  6. Do not use Form 4759 to verify a taxpayer's Master File address. This will add more processing time and postal costs to our cases without providing value. The taxpayer's Master File address will be updated by NCOALink if the taxpayer has submitted a change of address form to USPS within the previous 48 months.

  7. Confirm the Master File address in accordance with paragraph (3) of IRM 5.16.1.2.1, Unable to Locate and Unable to Contact, before you close the case with TC 530 when you have made a field call and verified the taxpayer is UTL or UTC at the Master File address of record.

  8. Follow the procedures below when it is necessary to send Form 4759 to the USPS. IRM 5.1.18.2.2.2.

  9. Use Form 4759 to obtain the physical address of a Post Office (PO) Box holder from USPS.

  10. Refer to the following IRM sections to appropriately use Form 4759 in other situations.

    1. IRM 5.1.18.12.2.3.

    2. IRM 5.1.18.12.2.4.

5.1.18.12.2.1  (09-17-2010)
Properly Preparing Form 4759

  1. When it is necessary to send Form 4759 to the USPS, always:

    • use the most recent version of Form 4759

    • include the appropriate return address

  2. The most common error with Form 4759 is neglecting to include the return IRS address where the Postmaster can send the taxpayer address information. Other common errors include:

    • Using an outdated form

    • Including an envelope for return.

  3. Do not include any envelope. It is unnecessary and a waste of our postage resources to include an IRS Business Reply Mail envelope since the USPS has agreed to return Form 4759 to the IRS in a USPS envelope. The authority for this is in a USPS document; it is in Exhibit 5-2 under Section 5, Requests for Special Categories of Records , of the USPS Handbook AS353. See IRM 5.1.1.2.1.2, Mailing Guidelines.

5.1.18.12.2.2  (09-17-2010)
Undeliverable Mail

  1. Mail may be rejected as undeliverable because of various reasons including:

    • an inappropriate rural route address, or

    • an error in processing a two-line address.

5.1.18.12.2.2.1  (09-17-2010)
Rural Route Addresses

  1. Print rural route addresses on a piece of mail as follows:

    • "RR N BOX NN"

  2. Do not use the words "RURAL," "NUMBER, " "NO.," or the pound sign (#).


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