5.4.11. CCP Installment Agreements

(1) A taxpayer may request an installment agreement providing certain criteria for each type of agreement are met.

(2) Installment Agreements (IA) are arrangements whereby the Internal Revenue Service allows taxpayers to pay liabilities over time.

(3) If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, Partial Payment installment agreements (PPIA) may be granted.

(4) During the course of these agreements, penalty and interest continue to accrue.

(5) Generally, no levies may be served while an installment agreement is pending or is in effect.

(6) For more information on installment agreements, see IRM 5.14.

(1) The authorities for this IRM include:

• IRC 6159, Agreements for Payment of Tax Liability in Installments.

• Treasury Reg Title 26 § 301.6343.

(2) IRM 1.2.1.6.1, Policy Statement 5-1, Enforcement is a necessary component of a voluntary assessment system.

(3) IRM 1.2.1.6.2, Policy Statement 5-2, Collecting Principles.

(4) IRC 6502 provides procedures for ten-year CSED.

(5) 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.

(6) IRC 6320 and 26 CFR 301.6320-1, the right to appeal the filing of a Notice of Federal Tax Lien.

(7) IRC 6330 and 26 CFR 301.6330-1, the right to appeal before or after levy action is taken, depending on the type of levy.

(8) IRC 7122(e), the right to appeal the IRS’s rejection of an installment agreement request.

(9) 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 26 CFR 301.6159-1(e)(5).

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

(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 of the balanced due program.

• Employee Inventory Report, Employee Case Type Report and Closure Due Date Report (generated through 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 Control Activity System (CCA) Reports

• Embedded Quality Review System (EQRS) Reports

• Accounts Management System (AMS)

• 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 NQRS results to show monthly and cumulative stats. Evaluative (EQRS) and National (NQRS) Quality reviews 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 1.4.55, 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 from ICS.

(6) Account Management System (AMS) is used by Collection managers to verify required account documentation and actions taken when necessary per IRM 5.4.11.

(7) Integrated Collection System (ICS) is used by Collection managers to provide workload assignment/tracking, inventory control and case analysis.

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

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

1. Guaranteed Installment Agreement – Taxpayers with Individual income tax liabilities of $10,000 or less (exclusive of penalties and interest); See IRM 5.14.5.3, Guaranteed Installment Agreements.

2. Streamlined Installment Agreements – Taxpayers with liabilities of $50,000 or less; See IRM 5.14.5.2, Streamlined Installment Agreements.

3. In-Business Trust Fund Express Installment Agreements; See IRM 5.14.5.4, In-Business Trust Fund Express Installment Agreements.

4. Manually Monitored Installment Agreements (MMIA); See IRM 5.14.9.5, Manually Monitored Installment Agreements, including MMIA In Business Trust Fund (IBTF) agreements; See IRM 5.14.7.4, In-Business Trust Fund Installment Agreements Requiring Financial Analysis and Determining Ability to Pay.

5. Partial Payment Installment Agreements (PPIA), which can be systemically or manually monitored; See IRM 5.14.2, Partial Payment Installment Agreements and the Collection Statute Expiration Date.

6. Direct Debit Installment Agreements; See IRM 5.14.10.4, Direct Debit Installment Agreements.

7. Payroll Deduction Installment Agreements; See IRM 5.14.10.2, Payroll Deduction Installment Agreements.

8. Installment agreements involving Limited Liability Companies (LLC); See IRM 5.14.7.3, Installment Agreements Involving Limited Liability Companies.

9. Routine Installment Agreements- Installment Agreements that do not meet the criteria for any other type of installment agreement ( Guaranteed, Streamlined, IBTF or IBTF Express . See IRM 5.14.9.4, Routine Installment Agreements

10. Affordable Care Act (ACA) individual Shared Responsibility Payment (SRP). A standalone SRP occurs when a balance due is created on an module with MFT 35 File Source 1 (SRP 5000A) and there is no other Balance Due module with a different MFT in Status 22, 24, or 26, nor a TDI module in status 03. If an additional SRP balance due occurs in a subsequent year, and still no other modules with a different MFT, it is (they are) still considered a standalone SRP.

(3) SRP Manually Monitored Installment Agreements: If the taxpayer has requested an account to be split due to a divorce or innocent spouse, current procedures do not allow for mirroring the assessment until 2016. The case will be sent to Manually Monitored (MMIA). SRP cases can be maintained in MMIA Philadelphia until they can be mirrored. As with all agreements, the taxpayer must have filed all tax returns that are due prior to entering into the agreement.

(1) Initial analysis will be completed within 21 business days from the employee assignment date. Annotate ICS/AMS case history of all actions taken.

(2) New installment agreements must include all open modules, including SRP, MFT 35.

(3) Verify on ICS the following information:

(4) IAs received from the field should include all balance due modules. CCP will reject IAs back to the originator if the agreement does not include all balance due modules. When rejecting the case, reference IRM 5.14.1.4.2, Compliance and Installment Agreements, and document ICS with the reason for rejection. The exceptions to this IRM requirement are IAs listed in IRM 5.14.7.3.2, Installment Agreements when Owner (SMO) and LLC are Liable for Assessments in the LLC Name.

(5) Ensure case is Tsigned on IDRS.

(6) 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 liability of the SMO and LLC.

(7) Set a two week follow-up for any modules that have been MFREQ or a TC 472 has been input.

(8) If the case is closed incorrectly, cannot be monitored, not in compliance, or is missing information and not in ST 60, reject the case. See IRM 5.4.11.4.2, Returning Rejected Cases to Originator.

(9) If the case is closed as an IBTF, and is in ST 60, but should be a:

1. PPIA, then run the payment calculator, document the case with the calculator information and notify the Lead to transfer the OI to the PPIA team for monitoring. Upon receipt of case, PPIA team will update asset code on IDRS to 1.

2. MMIA, default the IA and suppress the default notice, input CC STAUP 2200, change the sub code to 901 and notify the Lead to transfer the OI to the MMIA team for monitoring. The MMIA team will close the OI when all modules are in ST 26.

(10) If the case is closed as a PPIA, is in ST 60, and the taxpayer is:

1. in business and the account will be full paid within the CSED, close PPIA OI and notify Lead to transfer NF-OI to the IBTF group. Delete ICS two year financial review follow up. Run payment calculator, document case with calculator information.

2. out of business and the account will be full paid within the CSED, close PPIA OI and delete any ICS follow ups. Update CC IADIS to reflect non-PPIA terms. Run payment calculator, document case with calculator information.

3. in business, and the account will NOT be full paid within the CSED, change the sub code to 900, open an IBTF OI and contact IQA to update IDRS Tsign.

4. out of business and the account will NOT be full paid within CSED, monitor case for two year financial review. Routine PPIAs are not Tsigned to CCP. If CCP Tsign is present, contact IQA for Tsign to originator and verify subcode is 911 for Routine PPIA.

(11) Cases meeting "mirroring" criteria below must be forwarded to CSCO. See IRM 5.19.1.6.7.1, Front End Mirror Assessments Process for IA Closures.

• IA established with secondary taxpayer.

• Primary taxpayer is currently not collectable, unable to locate, etc. (ST 53), deceased, in notice status, ST 26 or paying under separate IA.

(12) See Exhibits 1-6, 1-7 and 1-8 in IRM 5.19, Liability Collection, for IDRS input of IAs that were not systemically uploaded.

(13) Verify the correct ALN. See IRM 5.19.1-9, Installment Agreement Locator Numbers.

(14) The tax examiner will compute balances for each tax period included in the IA to the due date of the next payment. This amount will be used to complete and mail Letter 3856, Monthly Reminder for Installment Agreement Payments, or Letter 3856-A, Monthly Reminder for Installment Agreement Payments for Joint Liabilities. Include a pre-addressed envelope with the MMIA Lockbox address to the taxpayer for the next payment on MMIA cases. Do not include any cross-reference balance dues on the letter. Reminder notices for IBTF cases are sent systemically through IDRS.

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

• IAs where the taxpayer makes payments a few times a year or at different intervals.

• Irregular payment amounts.

• Payroll deduction cases.

• Spouse(s) with multiple SSN's.

  Example: Taxpayer has filed jointly with different spouses.

• Invalid SSN's.

• Non-Masterfile assessments (NMF).

• IBTF agreement which include MFT 74 & 76 modules.

  Note: If an IA request is received from an RO that does not include a module(s) with MFT 74 or 76, DO NOT REJECT the IA. The IA should be input excluding the MFT 74 and/or MFT 76 modules. Monitor the IA per IRM 5.4.11.5, Monitoring Non-IAT Cases. Ensure the correct type of IA (IBTF, Routine, etc.) is selected.

• SMO/LLC agreements with multiple statuses.

(16) If a case meets IAT monitoring requirements, provide the IAT administrator with the following information and document ICS case history: IAT monitoring process implemented on this case. No histories, follow-ups, or reviews will be performed on this case unless the account appears on the Manual Action Report.

1. TIN of IA account and any cross reference TINs.

2. Terms of agreement, including payment amount, due date and any future changes.

3. Employee assignment number and name.

(17) Complete appropriate checklist for cases received.

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

(1) Once a case meets rejection criteria, follow the below procedures:

1. Annotate the ICS case history with the reasons for the return of the IA. If the case is not on ICS you must annotate the reason(s) for return/rejection on AMS.

2. Monitor for posting of the TC 030.

3. After the TC 030 posts, send a secure email to IQA to undo the IA.

4. After the IQA performs the undo IA (TC 972), CCP will close all OI follow-ups on ICS and close the NF-OI. Transfer balance dues to the originator.

(2) Return sub code to the original case sub code (national) or 000.

(1) Use all available generated reports to monitor inventory.

(2) Check for ICS notifications daily and take appropriate action:

1. Newly assigned cases or reassigned cases

2. Expired follow-up dates

3. Re-opened cases

4. New histories on a case

(3) Check daily:

1. Emails - respond in a timely manner

2. Efax - notate AMS upon receipt

(4) Delete unnecessary ICS notifications.

(5) Ensure case has appropriate Tsign and ICS subcodes.

(6) Provide any necessary information to the IAT administrator. IRM 5.4.11.4.1, Initial Analysis of MMIA - IBTF - PPIA Cases.

(1) Continuous Wage Levies are not installment agreements. Continuous Wage Levies will be monitored for payment and compliance by CCP. Some Continuous Wage Levies are monitored in ST 60 on IDRS. See IRM 5.11.5.6.2, Systemic Monitoring of Continuous Levy Payments.

(2) For initial CWL cases, research and document ICS for the following:

1. Reasons for manual monitoring.

2. Levy sources and terms. Add levy source to IDRS using command code LEVY(X) and ICS if not present.

3. Last payments received.

4. Lien indicators on IDRS. If not present contact the originator.

5. CSED extensions (TC 300, 186 etc.) on each module and note in ICS history.

6. Input follow-up based on the terms of the agreement at a minimum of 30 days after the payment due date. If the terms of the agreement indicate irregular payments will be made, set the follow-up for 30 days. If no payments are received after 90 days, see IRM 5.4.11.5, Monitoring Non-IAT Cases.

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

(4) If payment is missed, follow up with the payer.

(5) If the reason for non-payment was temporary, secure the date payments will resume and set a follow-up for seven business days from the date provided.

(6) If the payment stopped for any reasons listed below:

(7) When contacted by a taxpayer/authorized representative claiming hardship, or requesting to be converted from a CWL to an installment agreement, assigned to CCP, advise the taxpayer/authorized representative to contact the originating RO and be prepared to provide financial information. Leave an ICS history and continue to monitor the CWL. If the taxpayers asks to be referred to the Taxpayer Advocate Service (TAS), or the taxpayer meets TAS criteria and the taxpayer's issue cannot be resolved the "same day" (within 24 hours), complete Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and refer the taxpayer to TAS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information. If you are able to resolve and close the TAS issue on the same day as the TAS contact, do not refer the inquiry to TAS.

(8) If subsequent payments have been received, continue monitoring the case. Set the next follow-up based on the terms of the levy.

(9) 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.

(10) 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 into the future. If the account can be monitored systemically, put account into ST 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. See IRM 5.11.5.6.2, Systemic Monitoring of Continuous Levy Payment.

(11) The following actions must be taken when monitoring CSED(s):

1. If one or more CSEDs expire, but the remaining balance due periods included on the levy are within the statutory period for collection, do not release the levy.

2. Monitor levy payments until all balance due periods included on levies are paid or the last CSED is about to expire (whichever is first).

3. If some balance due periods are fully paid, or the CSEDs expired and, as a result, the case now qualifies for systemic monitoring, follow the procedures in (4) above, See IRM 5.11.5.6.2, Systemic Monitoring of Continuous Levy Payments. Input ICS history indicating "The following period(s) have expired CSED(s)" then list the appropriate balance due periods.

4. For wage levies that will be released when the CSED expires, input a TC 971, AC 687, misc. 002 for each module included in the continuous wage levy.

5. For other continuous levies that reach a taxpayer's right to future payment and will not be released when the CSED expires, input a TC 971, AC 687, misc. 001 for each module included in the continuous levy.

6. If the levy form is available, record this information on the levy. Ensure it includes a list of the tax periods that have expired CSED(s).

(12) Verify account for compliance using BMFOL/IMFOL on IDRS.

(13) If account has a new balance due, open an ENMOD control base to the FORT. Input a separate history on ICS using the FORT referral template that states the issue for the FORT referral on ENMOD. Schedule a follow-up date on ICS for 75 calendar days from the date the case is referred to the FORT.

(14) If the account has an open TDI (ST 02 or 03), initiate 6020b processing for Form 940, Employer's Annual Federal Unemployment Tax Return, and Form 941, Employer's Quarterly Federal Tax Return, returns. See IRM 5.4.10.6, IRC 6020(b) Processing. Prepare a FORT referral for all other BMF and IMF returns.

(15) A Form 668-D, Release of Levy/Release of Property from Levy, will not be issued until:

1. All liabilities are full paid.

2. The last CSED is about to expire, so the wage levy is released far enough in advance that no payments are received after the expiration of the CSED.

3. One of the criteria in IRM 5.11.2.3, Releasing Levies, exists.

(1) Update the following changes to the IAT list daily:

1. Add TINs of new cases.

2. Remove TINs of closed cases.

3. Revisions of TINs for other changes.

4. TINs of reinstated IA's.

(2) The IAT administrator runs the MMIA/IBTF-IA batch process daily. Batch reports include:

1. Manual Action List

2. Information Only List

3. Print of letters: Letter 2975, Notice of Intent to Levy under IRC section 6221(d) and Letter 3856, Monthly Reminder for Installment Agreement Payments, CP522P, Notice of Periodic Review of Current Installment Agreement.

(3) Distribute reports and letters to the assigned tax examiner by Tsign.

(4) Generate the ASED report by the 7th of each month and distribute to the assigned tax examiner by Tsign. Verify the report is completed by the 28th of each month.

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

(2) Complete a Compliance check.

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

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

(2) Complete a compliance check.

(3) Annotate ICS/AMS case history of all actions taken.

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

(2) Complete a compliance check.

(3) Annotate ICS/AMS case history of all actions taken.

(1) IAT ASED report will be run by IAT administrators by the 7th of each month if possible and distributed to TEs and return completed by the 28th of each month.

(2) For all cases: Follow the If/Then chart to determine the action to take for all cases that appear on the ASED report. Be sure to update the history on ICS. Your history should state "working ASED listing" and notate any actions you are taking or not taking to resolve.

(3) For ASED within 3 months: Use the IAT TFRP calculator tool to calculate the LEM amount and refer to the following If/Then chart:

(4) For ASED later than 3 months, but within a year: No further action is required at this time. Input "No Action" on the ASED report.

(1) After verifying default condition exists:

1. Input ST 64 on all related accounts using cc IADFL.

2. Update ICS sub code to 926.

3. Provide IAT administrator default date.

(2) 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 be issued from IDRS.

1. If an IBTF includes liabilities assessed in the name and EIN of an LLC when the SMO is identified as the liable taxpayer, the IBTF should not be defaulted if new accounts are assessed for employment tax periods beginning on or after January 1, 2009, when the LLC is the liable taxpayer.

2. Since the LLC may be liable for new tax periods assessed in the name and EIN of the LLC, issue an OI to the originator to address new liabilities and continue to monitor the SMO portion of the IA.

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

(4) If the IA has not been reinstated after 90 days see IRM 5.4.11.8.2, IBTF and PPIA Default Procedures, and IRM 5.4.11.8.3, MMIA Default Procedures.

(5) Ensure any associated balance due is assigned to the appropriate group.

(6) Do not review for a cure of the default or contact the RO if the case has automatically uploaded to the field.

(1) After 90 default day period has expired, verify the CP 523, Default Installment Agreement-Notice of Intent to Levy, was issued.

(2) If the CP 523 was not sent and the account is in Status 60 or Status 61, input command code IADFL. This will cause the account to update to ST 64, and issuance of the default Notice CP 523.

(3) If the CP 523 was not sent and the account is in a status other than 60 or 61, send Letter 2975 via ICS. Refer to IRM 5.4.11.8.3(2), MMIA Default Procedures.

(4) If default condition has been resolved and there are no other compliance issues, verify the case was reinstated to ST 60.

(5) Do not review for a cure of the default or contact the RO if the case has automatically uploaded to the field.

(6) After 90 days from the issuance of the default letter if:

1. the IA has not been reinstated;

2. a new IA has not been placed into effect and/or will not be entered into soon;

3. the taxpayer has not requested a Collection Appeals Program hearing for the default or termination of the IA; or

4. the taxpayer has not requested a Collection Due Process hearing, (see IRM 5.1.9.3.6.1, Transaction Code TC 520 and TC 521 cc 76 or 77) input TC 971 AC 163 on all appropriate periods and transfer the case to the appropriate group pursuant to zip code.

   Note: Check the case history and IDRS for TC 520 CC 76 or 77 to determine if there is an active CDP Appeal. A TC 971 AC 275 indicates a CDP Appeal request has been received, but not yet opened as a case. If Appeals determines an IA is not the proper case resolution, or if the resolution cannot be completed within CCP, forward the case to the appropriate FC group pursuant to the zip code.

(7) Complete ICS Default Checklist, document AMS when appropriate.

(8) If other than a sole proprietor entity, and there is an ASEDR 5 on the account, change the ASEDR indicator to "0" before transferring defaulted case.

(9) If the account is in status 24 (Area queue) on IDRS after the 90 day default period has expired:

1. Email IQA to Tsign back to the field on IDRS (only if not in the queue).

2. Complete the default checklist.

(10) If case is in ST 22, email the lead to expedite case to ST 26.

(11) Change 926 sub codes to original case sub code.

(12) Request the paper case file to be held on retention wall. On ICS, transfer the case back to the appropriate area if not already assigned.

(1) As stated above, 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 IA is terminated. Wait 90 days.

(2) Issue Letter 2975 as follows:

1. complete the identification information on the top of the letter;

2. provide the reason the agreement defaulted, see IRM 5.14.11.3, Reasons for Proposing Termination (Defaulting) of Installment Agreements.

3. compute penalty and interest to 30 days from the date of the letter;

4. include Pub 594, The IRS Collection Process, and a non-postage-paid return envelope with the letter;

5. include Pub 1660, Collection Appeal Rights, see IRM 5.14.9.8, Collection Appeals Program; and

6. send the letter by certified or registered mail, return receipt requested.

(3) After 90 days from the issuance of the default letter if

1. the IA has not been reinstated;

2. a new IA has not been placed into effect and/or will not be entered into soon;

3. the taxpayer has not requested a Collection Appeals Program hearing for the default or termination of the IA; or

4. the taxpayer has not requested a Collection Due Process hearing, (see IRM 5.1.9.3.6.1, Transaction Code TC 520 and TC 521 CC 76 or 77) input TC 971 AC 163 on all appropriate periods and transfer the case to the appropriate group pursuant to zip code.

(4) Complete ICS Default Checklist, document AMS when appropriate.

(5) If other than a sole proprietor entity, and there is an ASEDR 5 on the account, change the ASEDR indicator to "0" before transferring defaulted case.

(6) Change 926 sub codes to original case sub code.

(7) Request the paper case file to be held on retention wall. On ICS, transfer the case back to the appropriate area if not already assigned.

(1) If it is a business taxpayer, request a completed Form 433 A/B from the taxpayer. If it is an IMF with an aggregate balance of $250,000 or more, request a completed Form 433-A within 14 days (for additional guidance refer to IRM 5.19.13, Campus Procedures for Securing Financial Information). Update the review cycle for four (4) cycles to prevent the account from defaulting.

(2) Prepare a FORT referral after financial information is secured and update review cycle for eighteen (18) cycles, and send the taxpayer a Letter 2645C.

(3) If the account has already defaulted, do not revise the agreement until the financial analysis is completed.

(4) For IMF cases under $250,000.00, when contacted by the taxpayer or their authorized representative, CCP will conduct a two-year financial review using AMS, for IMF accounts meeting two-year review criteria. See IRM 5.15.1, Financial Analysis Handbook, for two-year financial review criteria.

(5) If the taxpayer needs additional time to provide the financial information, allow no more than 14 additional days. Allow only one extension. Update the review cycle, if necessary, to prevent the account from defaulting.

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

1. the liability 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.

(7) If at anytime during the process the taxpayer qualifies for and agrees to an SIA (see IRM 5.14.5.2, Streamlined Installment Agreements), input of the financial information is not necessary. Input the IA as agreed to, document AMS with SIA information, input levy sources, if present, and destroy the Form 433. See the exhibit in IRM 5.19.1-7, IDRS Input of IAs, CC IAREV.

(8) A new Form 433-D is required when the taxpayer is increasing their monthly payment amount, changing banks, changing routing numbers, or changing account information.

(9) Check that the taxpayer is in compliance with all filing requirements, both individual and business. For research procedures for full compliance, check IRM 5.19.1.4.4.1, Full Compliance Check. SRP module will not cause a PPIA to default and can be added to existing PPIA with the taxpayer’s consent.

(10) If the taxpayer is not in compliance, advise them to file all outstanding returns. Advise them what returns are needed for us to consider their IA proposal. Advise the taxpayer that we cannot consider any change in the terms of the agreement or extension of time to pay if all required returns are not filed. Continue with securing updated financial information.

(11) If the taxpayer states they have a court ordered payment such as alimony, child support, state and other court order payments, or, based on a taxpayer's individual facts and circumstances, it may be appropriate to deviate from the standard amount when failure to do so will cause the taxpayer economic hardship. Payments for other expenses such as state or local tax payments and student loans may also be allowed in certain circumstances. See IRM 5.15.1.11, Other Expenses. The taxpayer must provide reasonable substantiation of all expenses claimed that exceed the standard amount, CCP must:

1. Request a copy of the agreement, court order or substantiation for expenses by fax or mail. Allow a 14 day extension for receipt of substantiation. Update the review cycle to prevent the account from defaulting.

2. Complete 2-year financial review.

3. Document case history with all action taken.

4. If taxpayer does not substantiate the amount given during the financial review, send Letter 2272C and update review cycle for five (5) cycles.

(12) If the taxpayer now has the ability to full pay, demand taxpayer make full payment.

(13) If the taxpayer has ability to borrow, per the "financial statement" on AMS summary page, and can apply the amount to the liability in full or in part, the taxpayer will be required to utilize the equity before a PPIA will be allowed on the remaining liability. Request loan approval/denial from the taxpayer be submitted within 30 days and update IADIS for four cycles to prevent the case from defaulting. When letter is received, document case history with approval or denial. Update IADIS for four (4) cycles to prevent the case from defaulting.

(14) 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, (more than 20% of the established IA amount), notify the taxpayer accordingly, verbally or in writing, and revise the IA.

(15) If there is no significant change to the taxpayer's financial situation (payment increase/decrease of 20% or less than the established IA amount), the agreement will continue as originally established. The taxpayer will be notified that there is no change in the agreement.

(16) If the taxpayer’s financial situation indicates a payment reduction of more than 20%, forward the case for managerial review.

(17) If the taxpayer requests the current payment to be reduced, allow a 20% reduction.

(18) If the taxpayer is required to take some type of action, provide the taxpayer with specific deadlines and WOEA. The warning should be appropriate to the facts of the case. Ensure the taxpayer understands that if they fail to perform the task as agreed their noncompliance carries certain consequences. Document ICS/AMS and be sure to specify the WOEA.

(19) Warn the taxpayer in a non-threatening manner the IRS may take enforced collection action if an agreement cannot be reached; the warning should be as specific as possible. It is not sufficient to state, "We will take enforcement action if you do not meet the terms of this agreement". Specifically state the next action IRS may take. See IRM 5.19.1.7, Warning of Enforcement Actions and Enforced Collection, for next actions.

(20) If CCP is unable to revise the agreement or take other action necessary to resolve the case, other than placing the account in currently not collectible (CNC) status, i.e. taxpayer refuses the new proposal, the agreement will be allowed to default.

(21) If the financial review determines that the taxpayer has no ability to pay, CCP will proceed with CNC procedures on accounts other than those originating from Field Collection Revenue Officers, see IRM 5.19.1.2.6.4.3, Financial Analysis, Verification and Substantiation, ACS, ACSS and CSCO Employees.

(22) Taxpayers may request a CAP hearing with Appeals for both:

• Proposed modification of installment agreements and

• Actual modifications of installment agreements.

(23) Input any new levy sources on LEVYS.

(24) Update the two-year review cycle by updating the Agreement Review Date on IAREV and input the new review cycle to ICS if there is a PPIA OI. See IRM 5.19.1-7, IDRS Input of IAs, CC IAREV.

(25) Managerial approval is needed on all two-year financial reviews of $25,000.00 or more.

• Document AMS that the financial review was completed.

• Alert manager that approval is needed.

• Managers will review the case within 5 business days and document AMS of approval or disapproval.

• If manager does not approve the financial review, send Letter 2272C and update review cycle for five (5) cycles.

(1) The *SBSE PSC CCP DDIA electronic mailbox is monitored daily for incoming requests. Prior to batching and controlling, initial screening is conducted to identify erroneous, incomplete and/or misrouted requests such as:

• Missing taxpayer signatures and signature dates.

  Note: Third party signatures, such as Power of Attorney, are not permitted.

  Note: CCP is authorized to accept electronic/digital signatures on F433-D.

• Missing and /or incomplete bank account information.

• Misrouted requests.

• Incomplete RO information on Form 433-D, “For IRS use only”.

• Requests with an aggregate assessed balance (AAB) over $50,000 lacking GM approval on Form 433-D that cannot be verified on ICS.

(2) The Integrated Collection System (ICS) should be reviewed for missing or incomplete information. If missing information cannot be obtained from ICS, proceed with liaison referral.

(3) Screeners will take the following actions:When Casework Is Ready for Processing

(1) A listing of the DDIA Liaisons can be located on the Centralized Case Processing SharePoint at: DDIA Liaisons

(2) CCP designated DDIA liaisons:

• Assist tax examiners with complex cases.

• Check for incoming DDIA requests and referrals daily.

• Review cases suspended by tax examiners for further action.

  Note: Cases pending liaison review/action can be identified on IDRS CC: ENMOD with a control base of CXX,2LIAISON,S.

• Contact Field Collection employees when applicable.

(3) Upon receipt of suspended DDIA cases and/or case referrals, liaisons will:

• Send a secure "High Importance" e-mail to the originator and "cc" the group manager requesting the missing or incomplete information. Include an "CCP Response Needed" in the subject line. Provided the TIN and taxpayer’s name. Include the following statement: "To have the request processed, you must respond to this e-mail or call the CCP DDIA Liaison within 24 business hours. If there is no response within 24 business hours, your request will be rejected".

• If no response is received, update ICS to reflect this. If the case is not on ICS, document AMS. Close the IDRS control base as CXX,REJECT,C.

• If no response is received timely with the requested information, follow the procedures outlined in IRM 5.4.11.10.3, Perfecting and Processing DDIA Requests.

• If the originator requests an extension to respond, update ENMOD with a timely follow-up date and follow up accordingly.

(1) DDIA Requests must be assigned within 5 business days from the IRS received date and processed within 21 calendar days. A complete listing of CCP Processing Timeframes can be found on the Centralized Case Processing SharePoint at CCP Processing Timeframes .

(2) Tax examiners may utilize the IAT Compliance Suite when processing DDIA Requests. For more information on IAT Tools, refer to IRM 5.4.10.2.3.1, Use of IAT Tools.

(3) IDRS command codes commonly used for DDIA processing include EFTNT, EFTAD and EFTOF. For detailed information regarding these command codes please refer to IRM 2.4.33, Command Codes EFTNT, EFTAD and EFTOF for Electronic Transfer Funds.

(4) Immediately following DDIA input:

• Issue a Letter 1962C via IAT. Include the Tax Examiners name, contact information, and direct extension.

• Close the ENMOD control base. Ex: CXX,DDIAINPUT,C.

• Notate and store electronic Form 433-D properly for retention following local procedures.

• Tax examiners must use designated program codes for DDIA inputs.

(5) Tax examiners must completely review and perfect all DDIA requests prior to input. It may also be necessary to refer requests to the DDIA liaison or reject the case back to the originator. Utilize the If and Then table shown below:Perfect, Suspend, Or Reject DDIA Requests

(6) Input CXX,REJECT,C to close the ENMOD control base. Leave a history on ICS. If the case is not available on ICS, leave a history on AMS.

(7) All cases in need of a liaison review must be placed in suspense status. Input CXX,2LIAISON,S to update the ENMOD control. Leave a history on ICS. If the case is not available on ICS, leave a history on AMS.