5.4.12. Field Office Resource Team

(1) Internal Revenue Manual (IRM) 5.4.12 Case Processing, Field Office Resource Team (FORT) contains procedures, guidance and criteria for campus collection operations FORT tax examining technicians and FORT revenue officers. The content includes criteria and procedures for FORT referrals from General Case Processing (GCP) and the Manually Monitored Installment Agreement (MMIA) teams that are considered “beyond their scope” of expertise. The content includes procedures for adjustments, Two Year reviews for BMF Partial Pay Installment Agreement (PPIA) cases, lien determinations, Assessment Statute Expiration Date (ASED) issues relating to the Trust Fund Recovery Penalty, Taxpayer Advocate case adjustments, Department of Justice (DOJ) cases, and Military Deferment Requests (for Status 26 cases only). This list is not all inclusive.

(1) The Service has the authority to abate the unpaid portion of the assessment of any tax or any liability with respect thereof (which would include penalties and interest). IRC 6404 provides:

1. The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which is excessive in amount, or is assessed after the expiration of the period of limitation properly applicable thereto, or is erroneously or illegally assessed.

2. No claim for abatement may be filed with respect to income, estate, or gift tax.

(2) Policy Statement 5-1, Enforcement is a necessary component of a voluntary assessment system

(3) Policy Statement 5-2, Collecting Principles

(4) The IRS Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements for all IRS employees working tax related matters.

(5) IRC 6320 and Treas. Reg. 301.6320-1, The right to appeal the filing of a Notice of Federal Tax Lien.

(6) IRC 6330 and Treas. Reg. 301.6330-1, The right to appeal before or after levy action is taken, depending on the type of levy.

(7) IRC 6159(e), The right to appeal proposed modification or actual modification, and to appeal proposed termination or actual termination of an installment agreement, and Treas. Reg. 301-6159-1(e)(5).

(8) IRC 7803(a)(3), Taxpayer Bill of Rights.

(9) IRC 6020(a) Preparation of return by Secretary. If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person. (b) Execution of return by Secretary (1) Authority of Secretary to execute return. If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.

(1) The Director, Collection Policy, is the executive responsible for the policies and procedures in this IRM.

(2) The operations manager is responsible for managing campus collection activities including telephone, correspondence and systemic transactions, following the procedures in this IRM. They oversee department, team and employee responses to revenue officer requests, inquiries and responses concerning balances due.

(3) The department manager is responsible for overseeing team and employee responses to revenue officer requests for processing and inquiries, along with responses concerning systemic transactions, following the procedures in this IRM. They oversee team and employee actions to resolve balance due accounts owed by taxpayers.

(4) The team manager is responsible for overseeing employee responses to revenue officer requests for processing and inquires, along with responses concerning systemic transactions, following the procedures in this IRM. They oversee employee actions to resolve balance due accounts owed by taxpayers.

(1) Program Reports: The following daily and weekly reports are generated by management, and can assist with evaluating the performance and timeliness of the balance due program:

• Embedded Quality Review System (EQRS) Reports

• National Quality Review System (NQRS) Reports

• Accounts Management System (AMS)

• Integrated Collection System (ICS)

• Week at a Glance Report (WAAG)

• Overage Report Compiler and Sorter (ORCAS)

• Monthly Monitoring Report (MMR)

• Work Planning & Control (WP&C) Reports

• Case Controlled Activity System (CCA) Reports

• CCP Mistle Report

(2) Program Effectiveness: The Program results are housed on The Collection Program and Campus Report SharePoint Site in the Monthly Monitoring Report (MMR). The MMR captures National Quality review (NQRS) results to show monthly and cumulative stats. Evaluative Quality reviews (EQRS), NQRS, and consistency reviews are routinely conducted, along with Headquarters reviews, to ensure case actions are timely and in accordance with the procedures in this IRM.

(1) Managers are required to follow program management procedures and controls addressed in:

• IRM 1.4.1, Management Roles and Responsibilities

• IRM 1.4.2, Monitoring and Improving Internal Controls

• IRM 1.4.6, Managers Security Handbook

• IRM 1.4.55, SB/SE Campus Collection Support Manager’s Guide

(2) Managers conduct workload reviews to ensure compliance with this IRM.

(3) The department and operations managers perform operational reviews annually to evaluate program delivery, conformance to administrative requirements and ensure compliance with this IRM.

(4) Headquarters Collection Tax Policy and Collection Campus Operations conduct program reviews as necessary to verify compliance with IRM requirements, address TIGTA/GAO findings, and address any trends that appear.

(5) ENTITY is the Workload Management System (WMS) used by Collection managers to extract and organize information about case activity and casework quality from ICS.

(1) The table below provides a list of common abbreviations, definitions and acronyms used throughout this IRM.

(1) Here is a listing of some helpful IRM resources:

(1) General Case Processing (GCP) and Manually Monitored Installment Agreement (MMIA) departments will prepare a referral to the FORT for issues beyond their scope. Local procedures and IRM 5.4 will determine the method and forms used to make the referrals.

(2) The FORT will assign and open a control base on IDRS within 14 days of receipt of case.

(3) Unless otherwise indicated in this IRM, the FORT has 14 days from receipt of the case to take necessary action.

(1) The FORT is responsible to work all Taxpayer Advocate Service (TAS) cases identified in the Service Level Agreement or assigned to Collection Field function (CFf). See IRM 13.1.17, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Transferring TAS Cases. TAS requests will be received via Form 12412, Operations Assistance Request (OAR). The assigned tax examiner will log the TAMIS number into the TAS logbook.

(2) If OAR was sent to CCP in error, the assigned tax examiner will:

1. Complete section IV of the OAR.

2. Reject the OAR by faxing the first two pages of the OAR back to the originator.

(3) Upon receipt of the OAR, contact the TAS employee to acknowledge receipt of the OAR.

(4) All requests should be completed by the requested completion date on the OAR.

(5) For MMIA issues, take necessary action and document ICS.

(6) When the recommended actions in Section IV of the OAR have been completed, complete Section VI on page 2 of the OAR and fax to the TAS originator. Include prints of any modules adjusted. Write "closed" on the OAR and suspend the file for 60 days.

(7) Purge the suspense file after 60 days.

(1) The Servicemembers Civil Relief Act, 50 USC 4000 provides for deferment of payment of taxes by individuals whose ability to pay has been "materially affected" by the individual’s military service. The deferment applies to the period of qualified military service plus a maximum of 180 days after the service period ends.

(2) IRM 5.1.7.13, Military Deferments and IRM 5.19.1.5.9, Military Deferment define the criteria for taxpayers to qualify for military deferment. The FORT is responsible to monitor all military deferment cases in Status 26. Combat Zone cases are a category of military deferment and are NOT monitored in Centralized Case Processing. The cases are to be maintained until the military deferment period has expired. Upon receipt of a military deferment case check IDRS for the following:

1. Posting of Status 44.

2. Posting of TC 500 CC 50 (prior to Jan. 2004) and CC 51 (after Jan. 2004) on all balance due modules. If not posted, do the input, making sure to put the liability indicator P for Primary, S for Spouse, or B for Both.

3. The tax examiner is to verify that the military deferment expiration date is computed correctly. Military Deferment expiration equals taxpayer's requested period of deferment during qualified military service plus 180 days.

   Note: An officer may receive deferment only for the first two (2) years of qualified military service plus 180 days.

   See IRM 5.1.7.13(2)(d), Military Deferments and IRM 5.19.1.5.9, Military Deferment for a description of the periods of military service that qualify for deferment. If the military deferment expiration date is not correct, establish the correct date and use the corrected date throughout the procedures.

4. Check IDRS (SUMRY and IMFOLI) to confirm all tax returns have been filed. If the taxpayer is not in filing compliance (all income tax returns filed), ask the taxpayer to submit the unfiled returns. Failure to submit unfiled returns does not prevent a taxpayer from being eligible for military deferment.

5. Confirm that the taxpayer’s adjusted gross income (AGI) has decreased from the prior year compared to the start date of the military deferment. This should be indicated on the Letter 1175C, Collection Postponed During Initial Period of Active Military Service, or equivalent statement. If it has not decreased then the taxpayer is generally not eligible for military deferment.

   Note: Current monthly expenses incurred by the taxpayer as a result of military service should be deducted if current monthly earned income is more than monthly earned income immediately prior to military service.

   See IRM 5.1.7.13, Military Deferments and IRM5.19.1.5.9, Military Deferment for detailed instructions for determining eligibility for military deferment.

6. Documentation as outlined in IRM 5.19.1.5.9, Military Deferment, and IRM 5.1.7.13.1, Military Deferment Procedures must be in the case file.

(3) If the taxpayer does not qualify for military deferment reject the case to the originator. See IRM 5.1.7.13.2, Interest and Limitations on Collection to determine if the taxpayer qualifies for the reduced interest rate.

(4) After verifying that the taxpayer qualifies for military deferment and confirming the above information, take the following actions to monitor the case:

1. Create the case on ICS if not already created.

2. Document ICS with receipt of case and actions taken, as well as the calculated deferment date.

3. Establish follow-up date. Determine this date by subtracting 30 days from the deferment date.

(5) Review the case when the scheduled follow-up date arrives (via ICS notification); review IDRS to determine current status of case:

1. If case status has changed, such as full payment received or status has changed to 60 (installment agreement), no action is needed.

2. If deferment period has expired, close the OI.

(6) If taxpayer has not responded to Letter 535 by end of the 90-day suspense period, transfer the case and forward the paper case file to the appropriate collection function.

(7) If taxpayer responds to Letter 535 take the following actions:

1. If the taxpayer responds with full payment and is in full compliance, forward case to closed case files and close ICS control.

2. If taxpayer requests an installment agreement, input a TC 971 AC 043.

3. If the taxpayer’s response indicates an inability to full pay, but the taxpayer wants to explore other payment options, determine if taxpayer qualifies for guaranteed or streamlined IA. Follow procedures in IRM 5.14.5, Streamlined, Guaranteed and In-Business Trust Fund Express Installment Agreements.

4. If the taxpayer's response indicates inability to pay, secure a Collection Information Statement (CIS) and determine if the account meets criteria for Currently Not Collectable (CNC) Hardship. If they do not meet CNC criteria contact taxpayer for appropriate case resolution.

(1) The FORT will process all Government Accountability Office (GAO) financial audit requests received from the Chief Financial Office (CFO) and contact appropriate areas/coordinators as needed.

(2) GAO issues two types of letters regarding IRS formal audits and written objectives:

1. Audit Notification Letter- The GAO issues an audit notification letter to the IRS in December providing official notice that the financial statement audit is starting. The letter states that GAO has requested approval to access all records, files and tax return information needed to complete the audit from the Joint Committee on Taxation. Once GAO receives approval, GAO sends the audit notification to Chief Risk Officer-Enterprise Audit Management who in turn, disseminates the financial statement audit notification letters throughout the IRS as needed.

2. Audit Engagement Letter- The GAO issues an audit engagement letter to the IRS between February and March that provides written objectives for the IRS GAO audit. This letter is shared with each functional coordinator with a list of audit deliverables and the due dates.

(3) Collection CCP FORT assigns a designated employee who serves as a functional coordinator (GAO-FC) during the annual GAO financial audit. For more information about the overall SB/SE TIGTA/GAO audit program, see IRM 11.53.4, TIGTA/GAO.

(4) On behalf of the Chief Financial Office (CFO), the designated CCP FORT GAO-FC employee communicates with various coordinators, analysts and other Collection POCs within business areas such as Advisory, OIC, Field Collection personnel. The purpose of these communications is to request and gather data within the scope of the annual GAO audit pertaining to Field Collection. To ensure communications are timely and successful, the CCP FORT GAO-FC maintains an updated list of GAO contacts in various SB/SE Collection departments.

(5) Immediately after receiving this instruction and requests regarding the audit, the CCP FORT GAO Coordinator:

1. Determines the areas in need of contact, based on the requested items and distributes those requests to the responsible offices.

2. Monitors the requests to ensure all responses are received timely. When applicable, all responses, requests, or questions should be directed to the FORT GAO Coordinator by email.

3. Verifies responses for accuracy and completeness (dates, signatures, contents, etc.)

4. Responds back to the originating CFO contact and/or the designated mailbox established for the audit.

(6) Responses must be prepared in a specific manner, to ensure professionalism, accuracy, and completeness. For a list of response requirements, see IRM 11.53.4.2.3.7(3), Preparation of the GAO Audit Response.

(1) The FORT revenue officer will assist BMF taxpayers who receive a CP 522 letter requesting a mandatory two year review of their financial condition. The taxpayer will fax their financial information to the FORT E-fax number identified on the CP 522 letter. The case will then be assigned to a FORT RO to make contact with the BMF taxpayer to conduct the two-year financial review.

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

1. The balance due can be full paid, or;

2. an adjustment to the payment amount is necessary, or;

3. the agreement should continue without change, or;

4. the taxpayer is unable to pay.

(3) Use IRM 11.3.2.2, General Rules of Disclosure to Persons Having Material Interest and IRM 11.3.3.3, Disclosure to Third Parties Based Upon Taxpayer Request for Assistance.

(4) When contacted by the BMF taxpayer or their authorized representative, The FORT RO will conduct a two-year financial review based on Form 433–A or 433–B. The business income and expenses should be updated using the Collection Information Statement on ICS. Equity in assets must be addressed in the case history. See IRM 5.15.1, Financial Analysis Handbook to complete the financial review. If it is an in-business taxpayer or above criteria in IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement and financial information is secured the FORT RO will conduct the two-year financial review within eight (8) cycles.

(5) The FORT RO will receive a referral if the taxpayer states they have a court ordered payment such as alimony, child support, state and other court order payments, and documentation is not received. Prior to preparing the FORT referral CCP will:

1. Request a copy of the agreement or court order by fax or mail, if the taxpayer does not have access to a fax machine allow 14 days for mailing.

2. Complete 2-year financial review.

3. Document case history with all action taken.

4. Allow expenses if documentation is provided.

5. Update IADIS for 8 cycles to prevent the case from defaulting.

6. Send the taxpayer a Letter 2645C .

(6) 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.

(7) 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, the taxpayer will be notified of the changes.

(8) If there is no significant change to the taxpayer's financial situation, the agreement will continue. The taxpayer will be notified that there is no change in the agreement.

(9) 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.

(10) Update levy source on LEVYS.

(11) If FORT RO 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:

1. ACS (0012) cases will be returned to ACS.

2. Campus (0012) cases will be issued to ACS.

3. Field (0012) no equity cases will be forwarded to ACS.

4. Field asset cases will be forwarded to the field.

   Note: Only PPIA's that originated in the field as asset cases may be returned to the field.

(1) Lockbox requests are taxpayer payments on current installment agreements or other balance dues. When the taxpayer sends the payment to the IRS lockbox without a payment voucher or there is insufficient information for the vendor to determine the correct posting of the payment, the vendor will fax these requests to (855) 613-8098 or email to *SBSE EEF Philadelphia CCP FORT Lockbox. FORT tax examiners will research IDRS to determine correct posting of the remittance.

(2) Lockbox requests in need of research generally include, but are not limited to:

• Locating the tax identification number (TIN) for payments that have no TIN, partial TINs, incorrect TIN (spousal/business), etc.

• Determining the correct tax period/module in which the payment should be applied

(3) Lockbox requests must be completed and returned to the vendor via fax within 4 hours of receipt. Completed requests will be held in a suspense file for one week and then should be purged. For additional information, see IRM 3.0.230.2.8.1.1, Unprocessable Items and Fax Research.

(1) The FORT will work adjustments, credit transfers, payment tracers, and interest abatements received in the FORT via:

1. GCP Referrals.

2. MMIA referrals.

3. Restricted Interest and NMF balance due cases assigned to CFf. See IRM 21.7.12, Non-Master File (NMF) Adjustments, and IRM 20.2.1.4, Normal and Restricted Interest.

4. TAS requests.

5. Civil Enforcement Advice and Support Operation (CEASO) TC 520, 521, and 522 (non insolvency) input requests.

6. Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties input actions.

   Note: The FORT should not receive referrals from other areas of the Service unless the case meets Collection CCP criteria. Requests received erroneously should be returned to the originator.

(2) Follow IRM 5.4.10, General Case Processing.

(1) When restricted interest is present on a module the Fort will receive a secure e-mail from the revenue officer.

(2) The request will contain the subject line "Request for Restricted Interest Calculation."

(3) The body of the e-mail will contain:

1. Taxpayer Name

2. Taxpayer Identification Number (TIN)

3. Tax Period

4. Date of payoff

(4) Use the Commercial off the Shelf (COTS) software program called Automated Computation Tool/Decision Modeling Inc. (ACT/DMI), to secure the accrued interest computation.

(5) See IRM 20.2.1.4, Normal and Restricted Interest and IRM 20.2.5.6 , Restricted Interest.

(6) Request should be processed within 14 days of receipt only if the prior interest computation documents have been provided.

(7) CCP FORT periodically receives requests from DOJ for signed affidavits/declarations confirming the validity and accuracy of restricted interest computations (interest, restricted interest, and penalties). The affidavit/declaration contains the basic wording used when these types of requests are received from revenue officers/advisors when the case is related to DOJ. Additional paragraphs may be added as needed to further describe the specific computations. Once the affidavit/declaration is completed, it should be routed to the FORT Manager who signs DOJ Affidavit/declaration(s). See sample DOJ Declaration Exhibit 5.4.12-1.

(1) When Criminal Investigation (CI) conducts an investigation on a taxpayer assigned to a revenue officer, civil enforcement action may be temporarily suspended in order to allow the CI investigation to proceed. A Transaction Code (TC) 914 is placed on these accounts. CCP will monitor balance due and delinquent return cases. A TC 914 should appear on all modules showing a delinquency before the case is transferred. The purpose of monitoring TC 914 is to:

1. Address and protect CSED/ASED issues.

2. Ensure two-year risk analysis (e.g., collectibility determination, continued noncompliance, status of CI investigation) and lien refiling is conducted as required.

3. Monitor the ICS case for completion of the CI activity and reassignment to the field if required.

4. Address new balance due modules that need TC 914 input or parallel investigation.

(2) Cases will be received from revenue officers by paper files and as ICS cases. Revenue officers are required to create a NF-OI.

(3) Non-Master File (NMF) Cases - CI cases with 914 controls that are NMF require a TC 470, CC 90 to move the module into ST 89 (in lieu of ST 91) for monitoring. This action is completed via a Form 3177and is sent or faxed to the CSC campus. The ST 89 will remain on the module as long as the TC 914 control is open. The Form 3177 should include a history that can be placed on the NMF case.

(4) The following cases should not be transferred to CCP for monitoring:

1. Cases in the queue (status 24)

2. Currently Not Collectable (status 53)

3. Cases in litigation (e.g., litigation, bankruptcy) (status 72 on any module.)

   Exception: Review TXMOD. Status 72 modules with TC 520 cc 76/77 (Collection Due Process (CDP) for lien/levy) will be accepted for monitoring.

4. Cases where the Assessment Statute Date (ASED) or Collection Statute Expiration Date (CSED) will expire within twelve (12) months

   Exception: Cases will be accepted by CCP if a memo or the appropriate Form 10498-C, Intent to Commence Civil Action – Statute Protection for Assessment of Trust Fund Recovery Penalty, or Form 10498-D, Intent to Commence or Continue Civil Action – Collection Statute Protection, was obtained and forwarded to CCP.

5. Cases in Offer In Compromise (OIC) (status 71 on any module)

6. Cases in status 12

Note: If the situation arises where modules have mixed statuses, the referring RO will determine whether the status for certain modules needs to be reactivated due to open activity on the account (i.e., criminal investigation). Mixed status cases can be referred to CCP if restrictive conditions prevent modules that are in status 24 or 53 from being reactivated. If the RO has concerns, refer him or her to IRM 5.1.5.13.1, Cases with Imminent Statutes.