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

There are various types of installment agreements that may be granted to taxpayers:

Initial analysis will be completed within 7 business days from the employee assignment date, unless the account requires modules to be MFREQ'd or a TC 472 is required. If account is MFREQ'd or TC 472 is required set 14 day follow-up on ICS to allow the actions to post.

Verify the information on the Form 433D to include:

Complete the "MMIA/IBTF ICS Checklist" on ICS for cases received from the field to verify the following information:

For SMO/LLC agreements input a history on ENMOD stating the case is a SMO/LLC IBTF-IA with the total IA payment amount and individual payment ability of the SMO and LLC.

Complete Integrated Automation Technologies (IAT) initial checklist for MMIA cases received from other functions, ACS, field assistance and CSCO.

MFREQ modules included in the installment agreement but not on IDRS and modules where a TC 470 reversal was input, set a follow-up date for two cycles and TSIGN IDRS.

If the case is closed incorrectly, cannot be monitored or missing information reject the case. See IRM 5.4.11.3.2.

If cases meets "mirroring criteria" below, forward case to CSCO.

See IRM 5.19.1–6 for IDRS input of installment agreements.

Verify the correct ALN. See IRM 5.14.1-2.

When inputting a PPIA agreement, use Review Suppress Indicator (RSI) five (5) for IMF and RSI six (6) for BMF with a review cycle 2 years from the IA acceptance date. Form 900 may accompany PPIA agreements. Ensure the extension dates are the same on the Form 900 and IDRS. File the Form 900 in accessible files in CCP for 3 years beyond the dates to which the CSEDs were extended. Waivers must be accessible for research and accountability.

The tax examiner will compute balance dues for each tax period included in the installment agreement to the due date of the next payment to complete and mail Letter 3856, Monthly Voucher or Letter 3856A with a pre-addressed envelope with the MMIA Lockbox address to the taxpayer for the next payment on MMIA cases. Reminder notices for IBTF cases are sent systemically through IDRS.

Cases not meeting systemic IAT criteria, see below, will require manual monitoring monthly and scheduled follow-up date, seven (7) days after the payment due date.

If a case meets IAT monitoring requirements, provide the IAT administrator with the following information and document ICS case history " IAT monitoring, No monitoring histories, follow-up dates of reviews will not be documented unless necessary." :

Input a follow-up date on ICS and case history if case cannot be monitored by IAT and requires manual monitoring.

Centralized Case Processing (CCP) will return a case back to the revenue officer in the following instances:

Check for ICS notifications daily and take appropriate action:

Delete unnecessary ICS notifications.

Provide any necessary information to the IAT administrator. IRM 5.4.11.3.1.

Use all available generated reports to monitor inventory.

Continuous Wage Levies are not installment agreements. Continuous Wage Levies will be monitored for payment and compliance by Centralized Case Processing (CCP) every thirty days. Some Continuous Wage Levies are monitored in status 60 on IDRS. See IRM 5.11.5.6.3.

Verify payment was made and posted as required in the terms of the levy.

If payment is missed follow up with the payer.

If the reason for non-payment was temporary and the payments will resume, secure date and set a follow-up for 7 business days after the date provided.

If the payment stopped for any reasons listed below:

Return case to field for further collection activity or determination.

If CCP processing cannot resolve issues on these cases, transfer to the field for follow-up action. Document the reason for the transfer in the ICS history.

Determine if the Continuous Wage Levy can be monitored by IDRS. Levies that result in regular remittances, may be monitored systemically if the earliest CSED is further than 18 months in the future. If the account can be monitored systemically put account into status 60 using ALN 0208 with terms including the name, address and telephone number of the payer office, suppress reminder notice and TSIGN the case to Area Office (AO000000). Input ICS/AMS case history of actions taken and close case.

Monitor the CSED.

Verify account for compliance, using BMFOL/IMFOL on IDRS.

If account has a new balance due, prepare a FORT referral. Schedule follow-up date, on ICS, 75 calendar days after the case is referred to the FORT.

If account has an open TDI (Status 02 or 03), initiate 6020b processing for BMF returns. See IRM 5.4.10.5 Prepare Form 3449 , Exam Referral, for IMF and a FORT referral forForm 1120 TDI's.

If the account will be paid in full within six (6) weeks, prepare a FORT referral to prepare a notice of levy release. The notice of levy release must be sent to the payer 30 days prior to the account being full paid, advising the payor of the amount required to satisfy the levies. A notice of levy release will not be issued until:

Schedule follow-up date on ICS, seven (7) business days after the first payment due date. Monitor the case as indicated in the agreement, thereafter.

The IAT Administrator runs the MMIA/IBTF-IA batch process daily. Batch reports include:

Distribute reports and letters to the assigned tax examiner by TSIGN.

Update the following changes to the IAT list daily:

Work the Manual Action List (MAL) upon receipt. Refer to the " Reason Box" to determine appropriate procedures.

Annotate ICS/AMS case history, of all action taken.

Work the Manual Action List upon receipt. Refer to the " Reason Box" to determine appropriate procedures.

Annotate ICS case history, of all action taken.

Work the Manual Action List upon receipt. Refer to the " Reason Box" to determine appropriate procedures.

Annotate ICS and AMS case history, of all action taken.

When an agreement defaults, taxpayers with IDRS-monitored agreements receive CP 523, Default Installment Agreement-Notice of Intent to Levy. In the case of taxpayers with manually-monitored agreements, Letter 2975 , Notice of Intent to Levy under IRC section 6221(d) - will be issued when an agreement defaults. Like the CP 523, Letter 2975 gives the taxpayer 30 days to comply with the terms of the agreement before an installment agreement is terminated. Letter 2975 must be issued no less than 30 days before the date of termination in all non-jeopardy situations.

Issue Letter 2975 as follows:

After 90 days from the issuance of the 2975 letter and

input TC 971 AC 163 on all appropriate periods and transfer the case to the appropriate group pursuant to zip code and grade level using the ICS parameter tables. See IRM 5.1.9.3.6.1

When an IBTF defaults for failure to pay additional liabilities when due, or failure to make installment payments a CP 523, Default Installment Agreement-Notice of Intent to Levy, should issue from IDRS.

Verify the CP 523, Default Installment Agreement-Notice of Intent to Levy, was issued.

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

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

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

After 90 days, IRM 5.4.11.7.1.(3).

When conducting a two-year review, consider the taxpayer's income, expenses, assets and equity to determine if:

Use IRM 11.3.2, Disclosure to Persons with a Material Interest.

When contacted by the taxpayer or their authorized representative, CCP will conduct a two-year financial review using AMS. For IMF accounts meeting IRM 5.19.1.5.5.4 criteria and out-of-business taxpayers see IRM 5.15.1 for two-year financial review criteria. If it is an in-business taxpayer or above criteria in IRM 5.19.1.5.5.4, request completed Form 433 A/B from the taxpayer. Set 14 day follow-up. Prepare FORT referral after financial information is secured and update review cycle for four (4) cycles.

If the taxpayer states they have a court ordered payment such as alimony, child support, state and other court order payments, CCP must:

If there are increases to either the taxpayer's income or equity in assets, and the taxpayer now has the ability to full pay, demand will be made for full payment.

If the taxpayer has newly acquired assets or increased equity in assets which can be applied to the liability in part, the taxpayer will be required to utilize the equity before a new PPIA will be allowed on the remaining liability.

If the financial review indicates the taxpayer's ability to pay an amount that is different from the existing agreement and the payment amount needs to be increased, these changes will be conveyed to the taxpayer; verbally on the phone; or in writing and the IA revised.

If there is no significant change to the taxpayer's financial situation or if the review indicates a reduced ability to pay, the agreement will continue as originally established. The taxpayer will be notified that there is no change in the agreement.

If CCP is unable to revise the agreement or take other action necessary to resolve the case, i.e. taxpayer refuses new proposal, the agreement will be forwarded as follows:

Update levy source on LEVYS.

Update the two-year review cycle by updating the Agreement Review Date on IAGRE and input the new review cycle to ICS if there is a PPIA OI.