Assign the CDP WUNO on PEAS when received in the centralized APS campus office.

The PEAs type will be "CLS." The subtype selected will reflect the action required on the case:

APS employees will:

The case will not be closed out of the TE’s inventory on PEAs until all actions have been completed.

If the record has multiple years, each year may be closed as action has been completed; the entire case must not be closed if actions, including cycling adjustments, have not been completed.

Suspense PEAs, if necessary, during the process.

CDP cases are closed with the following closing codes:

EH cases are closed with the following closing codes:

RJ cases are closed with the following closing codes:

Separate Timeliness Determination (CDPTD) cases are closed with the following closing codes:

ACDS dates and action codes.

The TC 521 date is the date the determination becomes final. APS must ensure that IDRS reflects the proper TC 521 date and that it properly posts to IDRS.

If the taxpayer does not file for a judicial review, compute the TC 521 as follows:

If the taxpayer requested judicial review, the TC 521 date will be computed as follows:

The Collection Statute Expiration Date (CSED) will systemically be computed by IDRS with the input of the TC 521.

A manual computation is ONLY required when the account is joint and only the Primary (P) or Secondary (S) taxpayer requested the hearing.

The new CSED can be manually computed using the following tools:

If the CSED was suspended for only "P" or "S" , a new CSED can be input via REQ77 with a manually computed CSED.

How to input a TC 521 using CDPTS:

The FRM 77 web screen is available via the CDPTS to allow the user to make the necessary updates/reversals to the TC 520/521 cc 76/77.

Delete the existing stage 13:

If Stage 1 is deleted after Stage 13, the system will alert the user, "You may need to request reversal of the TC 520/521 cc 76/77."

APS will input a TC 522, not a TC 521, to the periods on any CDP case where the Settlement Officer closes the case as a disregarded hearing request using closing code 13. A disregarded hearing request is one submitted by a taxpayer where all the taxpayer's issues are considered frivolous or raised with a desire to impede collection. TC 522 does not require a closing code. It reverses the input of all prior TC 520's to that period. The net result of TC 522 input is that there is no suspension of the collection statute.

APS will input a TC 522, not a TC 521, to the periods on any CDP case where the Settlement Officer closes the case as a premature referral, using closing code 20.

TC 522 can be input through CDPTS at Stage 13 or by using the FRM 77 web screen also available on CDPTS.

ACS case files will not be returned to ACS. ACS case files will be sent to the "files" section. Related OIC cases will also be sent to "files" if the offer was not accepted. CDP OIC files are not sent back to COIC. If the CDP OIC was accepted, only the OIC file is sent to MOIC and the CDP file is sent to "files" .

APS will provide ACS with a copy of Form 5402 after the completion of all back-end processing for each ACS-originated case closure, regardless of Appeals closing determination, sustained or alternative reached.

APS will:

For CDP cases where the taxpayer has raised frivolous or hybrid issues, the Settlement Officer will indicate such on the Form 5402 and the following documents must be sent to ACS in addition to the Form 5402:

Revenue Officer Collection case files will be returned to the originating Revenue Officer (RO) after the case is closed in Appeals. Related OIC case files will be sent to MOIC if the offer is accepted or be sent with the CDP case file to the Revenue Officer if the OIC is rejected.

Prepare transmittal Form 3210 with the address of the originating RO (found on the Form 5402) and mail the original administrative file to the RO.

See IRM 8.22.3.8.2

IRM Exhibits are included at 8.22.3-2 and Exhibit 8.22.3-3 as check sheets for APS to use when preparing the closed office file. The use of these check sheets is mandatory.

The documents listed below are mandatory for every CDP or EH closed office file.

The documents below are mandatory for the CDP or EH closed office file only when they are contained in the administrative file:

Appeals Quality Measurement System (AQMS) data is one of the tools used by Appeals in measuring the success in accomplishing the objectives of the Appeals Strategic Plan. AQMS will randomly select closed CDP and EH cases for review.

When APS is notified that AQMS has selected one or more cases for review, APS will send the complete administrative file (including any related cases) and the closed office file, to the reviewer.

On ACDS, APS will update the LACTION field to read "AQMS" , the LTODATE with the date the files were sent to the reviewer and in the NOTE field, the reviewer's name and POD.

APS will complete all closing actions prior to sending the files to the AQMS reviewer.

Closed office files are typically retained for review by:

Ensure files are readily accessible and identifiable by:

Destroy two years after the end of the fiscal year in which the case is closed or when determined to be no longer needed in current operations, but not less than 9 months after the end of the fiscal year in which case is closed. See IRM 1.15.10 Records Management, Records Control Schedule for Appeals.

A Tax Court decision can be appealed by either the petitioner or the U.S. Government.

Counsel holds case files for at least 90 days after the Tax Court decision is entered. See CCDM 36.2.6.2.5 for more information on procedures for notifying Appeals when a Tax Court decision is final. .

Counsel will notify Appeals when the decision becomes final (after the case is finished in the U.S. Court of Appeals and/or Supreme Court). At this point, the TC 521 date must be determined. If there is a question in determining the TC 521 date, consult with APS management or contact the Counsel attorney directly for assistance in determining the correct date. See the NOTE section in IRM 8.22.3.4.1 for additional information on determining the TC 521 date.

The Tax Court may impose a penalty against a taxpayer not exceeding $25,000 under IRC 6673(a)(1) if:

If a court other than the Tax Court, including appellate courts, determines that the taxpayer is proposing a frivolous or groundless suit, the court may award sanctions, penalties, or costs under its rules. IRC 6673(b)(2) and (3) allow the "award" to be assessed and collected like a tax.

APS will assess civil penalties under IRC 6673(a)(1) and 6673(b)(2) and (3).

Clearly document on Form 5402 and the Appeals CDP Case Closure Sheet that an IRC 6673 penalty was assessed.

The penalties will be assessed on a Civil Penalty Module:

Assessing the penalty:

Use blocking series 52X if this is the first penalty assessment MFT 13 or 55 for a taxpayer and tax periods; all subsequent assessments will carry blocking series 53X.

Input a second TC 290 for ZERO with Blocking Series 96X upon posting of the 643 penalty. This will prevent another function outside of Appeals from erroneously abating the penalty.

For computation of the IRC 6673 civil penalties refer to Form 8278.

To set up an account for assessing and collecting the IRC 6673 penalty, see:

Installment Agreements are arrangements where the Service allows taxpayers to pay liabilities over time.

The hearing officer will enter a CNC closing code on Form 5402. The hearing officer will also indicate in the "Remarks" section of Form 5402, any non-CDP periods which should also be placed into CNC status.

Use IDRS Command Code REQ77 to place an account into CNC status.

The hearing officer must prepare a paper Form 53 if they request a mandatory follow-up. Send the paper Form 53 to ACS or the originating Revenue Officer to forward to Compliance Case Processing for input.

When CNC requests are made for one taxpayer on a joint liability, the account must be mirrored. APS will not mirror these accounts and will process these requests through ROs and ACS as stated in IRM 8.22.3.11.1.1(10)

An account adjustment on a CDP or EH may involve tax, penalty and/or interest.

IRM 21.5 , Account Resolution, contains the guidelines for processing adjustments and will tell you if an action may be taken. Follow these guidelines when working with adjustments.

You may also need to reference other IRMs, such as:

The CDP APS Campus sites will:

The Cincinnati Campus Appeals APS unit will:

All back-end closing actions for CDP cases with related IS issues may also be closed by one campus back-end APS unit in a centralized location, as determined by APS management.

Levy releases are an interim action.

Hearing officers should request levy releases by contacting Collection before the case is closed to APS.

If APS is requested to release the levy, return the case to the hearing officer through the APS manager.

There are various types of lien resolutions. Most resolutions require interim actions on the part of the hearing officer.

Back-end processing on OIC cases will differ depending on whether COIC or Appeals accepts the OIC. CDP and EH back-end processing will not change.

IRM 8.22.3.7 for CDP or EH file closing actions.

The back-end processing instructions are the same for CDP or EH OICs investigated by COIC and returned with a rejection recommendation and CDP or EH OICs investigated and rejected by Appeals because Appeals makes the final determination on all OICs.

A rejected CDP or EH OIC will have a separate file, but the file is not returned to COIC. The rejection file remains with the CDP or EH file.

The rejected OIC will not have a rejection letter separate from the determination or decision letter. The hearing officer discusses the rejection in the attachment to the decision or determination letter.

All OIC documents remain with the CDP or EH file.

APS is now responsible for closing actions on AOIC for CDP offers rejected by Appeals that have been loaded onto AOIC. See IRM 8.23.6.2.5.1(2) for procedures on how to close CDP OICs rejected by Appeals.

A withdrawn CDP or EH OIC will have a separate file, but the file is not returned to COIC. The withdrawn OIC file will remain with the CDP file.

The withdrawn OIC will not have a withdrawal letter separate from the Notice of Determination or Decision letter. The hearing officer discusses the withdrawal in the attachment to the decision or determination letter.

As with accepted and rejected CDP offers, withdrawn offers must be closed on AOIC by APS if Collection loaded the offer onto the AOIC database. See IRM 8.23.6.2.4.1(2) for procedures on closing withdrawn offers on AOIC.

A sanitized MFTRAX or TDS transcript will be secured by the hearing officer and will have the following items " blacked out" (redacted) so that they are unreadable and not available in the public inspection file.