8.22.5. Receipt, Control and Pre-Conference Considerations

(1) The IRS Restructuring and Reform Act of 1998 (RRA 98) created Collection Due Process (CDP) appeal rights and with them, the ability for taxpayers to contest their liability under certain circumstances.

(1) Internal Revenue Code (IRC) sections 6320 and 6330 are the primary sources of authority, in addition to applicable Internal Revenue Manual (IRM) sections. Further, the Taxpayer Bill of Rights, IRC 7803(a)(3), applies to Appeals employees’ interactions with taxpayers.

(1) The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

(1) PPQ&A provides trend and data analyses and detailed summary reports for Appeals.

(1) See IRM Exhibit 8.22.4-3, Common Terms and Acronyms Used in Collection Due Process, for common terms and their definitions.

(1) eCase enables the Appeals Centralized Database System (ACDS) to electronically receive and store case files from the databases of partner organizations. This reduces the time required to establish the case on ACDS and also reduces or eliminates data input errors.

(2) eCase information is available from ACDS via the "eCase Info" button after accessing a case or work unit (WUNO). The "eCase Info" button is grayed-out if eCase information is not available.

(3) eCase provides data such as:

• Taxpayer name

• Taxpayer Identification Number (TIN)

• Master File Tax (MFT) code

• Tax periods

• Power of Attorney (POA) information, if available

• Telephone numbers, if available

(4) eCase for Automated Collection System (ACS) cases has 11 tabs for information, including:

• Case Events: A chronological list of events of the case while in Collection

• Information Items: ACS case narrative (see ACDS Utilities for ACS standard abbreviations and comments)

• Account Alerts and telephone numbers

• Financial Summary

• Asset/Liability: When available, this tab provides a list of assets, available credit, payments for certain expenses, federal and state withholding amounts

• Transactions

• Tax Modules (Integrated Data Retrieval System (IDRS) command code TXMODA)

(5) Integrated Collection System (ICS) eCase is more limited containing three tabs for information:

• ICS Account

• Address/Contact Info

• Taxpayer Agent

(6) ICS eCase does not provide:

• ICS case history

• IDRS command code TXMOD information

(7) ACDS data is also transmitted electronically to the ICS case history when the CDP/EH case is received or closed by the Account and Processing Support (APS). ACDS data transferred to ICS includes:

• Resolution Reason Description (RRD) selected on the Form 5402, Appeals Transmittal and Case Memo

• Hearing Type (DPLV/DPLN/DPL2 - see IRM 8.22.5.2.2.2, CDP Case Type)

• Feature code(s)

• Tax periods

• Dates (e.g., Hearing Requested, Received in Appeals, Request created on ACDS, Closed)

(8) Additional information about eCase including a brief training overview is available on the Business Systems Planning (BSP) web page on the Appeals web site.

(1) APS establishes the case, or work unit (WUNO) on ACDS using

1. Form 14461, Transmittal of CDP/Equivalent Hearing Request, for field Collection cases, or

2. Form 12153-B, Referral Request for CDP Hearing from ACS Support, for ACS cases

(2) After establishing the WUNO on ACDS, APS attaches a CSC to the case file highlighting the critical elements of the WUNO.

(3) The Appeals employee assigned the case is responsible for reviewing the following to ensure the accuracy of the information on the CSC:

• Form 12153, Request for a Collection Due Process or Equivalent Hearing

• Form 14461, or Form 12153-B,

• CDP lien or levy notice issued by Collection

  Note: ACS Letter LT11 is available on Control D through the ACS CDP Coordinator. ACS also enters the USPS received date on the CDP-Certified Mail Repository (CDP-CMR). See the Appeals CDP intranet page for links entitled ACS CDP Coordinators, for Control-D information. Also located on the Appeals CDP intranet page is the Support Work Link to Request SNOD/CML, which can be used to obtain copies of SNOD/CML information. .

(4) A request for a CDP hearing includes all periods listed on the CDP lien and/or levy notice, even if not listed on the hearing request. The periods on the CDP notice and the periods on the CSC must be the same unless the taxpayer specifically excludes a tax period on his or her hearing request.

(5) When adding CDP tax periods to the CSC, ask APS to input to the new periods a TC 971 with AC:

• 275 for a timely CDP hearing

• 278 for an EH

• 630 standalone levy or combination lien and levy hearing

(6) If a taxpayer subsequently withdraws some tax periods from the CDP hearing, see IRM 8.22.5.2.5, CDP Withdrawals.

(7) If the periods on the CSC are not consistent with the taxpayer's hearing request, see IRM 8.22.5.2.2.4 for instructions on making updates to the CSC.

(1) During your review, you may discover a taxpayer's hearing request lacks necessary information. It is important to distinguish between non-processable and incomplete hearing requests.

(2) Non-processable: A hearing request missing any of the following is invalid:

1. Signature of the taxpayer or taxpayer's authorized representative

   Note: The hearing request is not processable if the Form 12153 is signed by someone not authorized to sign on behalf of the taxpayer, such as a spouse, unenrolled return preparer, attorney, CPA or enrolled agent with no Form 2848.

2. Taxpayer identification number, such as an Individual Taxpayer Identification Number (ITIN), SSN or EIN and it can't be located in the documents submitted with the CDP request, such as a Form 433-A, cover letter, Form 2848

3. A statement that the taxpayer requests a hearing with Appeals (built into Form 12153). If the taxpayer did not submit Form 12153, but it is evident that the taxpayer is requesting a hearing, the requirement has been met. For example, if the taxpayer provides their name, address, TIN, and the tax and period at issue, and IRS records show that a CDP notice was recently sent to the taxpayer, then the taxpayer has met this requirement. Similarly, if the taxpayer attached the CDP notice, the taxpayer has also met the requirement.

4. The reason(s) why the taxpayer disagrees with the collection action (may simply be a checked box on Form 12153). If the taxpayer checks "other", the taxpayer still needs to have provided a reason in the remarks section or in an attachment to the Form 12153.

(3) It is not Appeals' role to perfect an invalid hearing request. If a hearing request is invalid, see IRM 8.22.5.2.4.1, Non-Processable Hearing Request and return the case to Collection as a premature referral per IRM 8.22.5.2.4.

(4) Incomplete: A hearing request missing information easily obtained from an internal database and/or information submitted by the taxpayer is valid. In such an instance, proceed with the hearing. Examples include:

1. Taxpayer's name is missing from Form 12153, Block 1, but a copy of the CDP notice reflecting the taxpayer's name was attached

   Note: If the tax liability is jointly owed and the taxpayers did not list either name on Form 12153 but attached a copy of the CDP notice, consider the request to be a joint request if jointly signed.

2. Taxpayer did not put mailing address on Form 12153, but it can be retrieved from IDRS

3. Taxpayer did not list the tax or tax periods on Form 12153, but a copy of the CDP notice was attached

4. Taxpayer identification number not listed on Form 12153, but is listed in a cover letter or can be identified through IDRS.

(5) If the CDP notice lists multiple tax periods and the taxpayer did not list any tax periods on the Form 12153, consider the request for a hearing to be for all periods listed on the CDP notice.

(1) A taxpayer's right to a CDP hearing is statutory. Appeals may not release jurisdiction of a CDP by returning a case to Collection as a premature referral unless:

1. The hearing request is not processable - see IRM 8.22.5.2.4.1 below, or

2. Collection issued the CDP notice erroneously- see IRM 8.22.5.4.2.4.2 below for examples

(2) For premature referral cases, input the following on the Form 5402:

• Closing Code = 20

• Instruct APS to input TC 522 instead of TC 521

(3) An attachment or ACM is not prepared since Appeals did not conduct a legal and administrative analysis.

(4) An untimely CDP hearing request is not automatically treated as an EH request, which can occur if Collection forwarded the case to Appeals as a timely CDP hearing, the taxpayer did not request an EH and the hearing officer determines:

1. The request for a hearing was not timely, or

2. That one or some periods are timely and one or some periods are not timely in a case involving multiple periods.

(5) The following table contains examples and procedures when the above occurs:

(1) A taxpayer may withdraw a request for CDP hearing or EH at any point prior to the issuance of the Notice of Determination or Decision Letter. Once a request is withdrawn, the taxpayer may not request another hearing on the same tax and periods. Administrative appeal is still available through the Collection Appeals Program (CAP).

(2) If a taxpayer withdraws from a CDP hearing but then rescinds that withdrawal prior to issuance of the closing letter by Appeals, continue with the hearing. The request to rescind the hearing may be made orally or in writing. Document the CAR.

(3) Form 12256, Withdrawal of Request for Collection Due Process or Equivalent Hearing, may be used to withdraw a CDP or EH request. While Form 12256 is preferred, any written request clearly indicating a request to withdraw is honored.

(4) The most common reasons for withdrawal are the taxpayer:

1. Resolves the issue with Collection

2. Realizes he/she is unable to resolve the CDP issues with Appeals due to compliance issues or the statutory preclusion of liability

   Note: A taxpayer may be eligible to have the case placed in CNC status despite compliance issues.

(5) If Collection receives a withdrawal from the taxpayer after sending the case to Appeals, Collection forwards the withdrawal to Appeals to associate with the CDP case.

(6) The legal and administrative review is not required when a taxpayer withdraws a hearing request. Advise the taxpayer seeking withdrawal that he/she is giving up Appeals’ legal and administrative verification. Use Letter 4383, Collection Due Process / Equivalent Hearing Withdrawal Acknowledgement, to communicate the withdrawal to the taxpayer.

(7) Request a withdrawal using Letter 4388, Withdrawal Solicitation, when:

• The taxpayer's only issue is a collection alternative that was granted by Collection

• The CDP liability was full paid and the taxpayer isn't raising Innocent Spouse or Interest Abatement

Allow the taxpayer 14 days from the date of Letter 4388 to withdraw.

(8) If the taxpayer does not withdraw, issue the SCL letter and schedule a hearing.

(9) If the taxpayer and you reach an agreed resolution, do not request a withdrawal. Instead, see below:

• For timely CDPs: Request the taxpayer sign and return Form 12257, Summary Notice of Determination, which protects the taxpayer's right to a retained jurisdiction hearing.

• For EH cases: Issue Letter 5145, Agreed Equivalent Hearing Closing Letter.

(10) Withdrawal of the CDP does not withdraw an OIC submitted as part of the CDP process. The taxpayer must separately withdraw the OIC in writing.

(11) If the taxpayer inquires about options for raising liability outside of the CDP, you may discuss claim or audit reconsideration procedures found at Pub 3598, What You Should Know About the Audit Reconsideration Process, or Pub 556 Examination of Returns, Appeal Rights, and Claims for Refund.

(12) A taxpayer may choose to withdraw some, but not all, periods on a CDP notice. If so, take the following actions:

1. Note the request in the CAR

2. Request APS remove the withdrawn periods from the CSC, establish a new CSC for the withdrawn periods and assign the new case to you

3. The new CSC has the same carding information but with a new WUNO

4. Copy and paste the CAR entries from the original case to the new case

(1) The taxpayer's request for a CDP hearing must be in writing and requested within the prescribed time period. Some CDP notices contain both an address for requesting a hearing and an address for making payments. The written request for a CDP hearing should be sent or hand-delivered to an IRS office and address as directed on the CDP notice.

(2) If a taxpayer mistakenly sends a timely hearing request to a different address on the notice, treat the postmark or transmission date as the date to determine timeliness.

(3) The following table reflects the requirements for various manners of delivery:

(4) Timely mailing is treated as timely filing/submitting as per IRC 7502 and IRC 7503.

(5) Notice 2016-30, 2016-18 IRB 676, Designated Private Delivery Services, lists the designated Private Delivery Service (PDS) providers for purposes of the timely mailing treated as timely filing/paying rule of IRC 7502. The currently designated PDS providers are DHL Express (DHL), Federal Express (FedEx), and United Parcel Service (UPS). If the postmark is made by a non-U.S. Postal Service (USPS) system, such as a private postage meter stamp or a designated (PDS), Treas. Reg. 301.7502-1(c) requires both of the following to be considered timely:

1. A legible postmark must be dated on or before the due date, and

2. The appeal must be received by the required IRS office not later than the time that a letter sent by the same class of mail would ordinarily have been received if it were sent from the same point of origin via the USPS on the last day for timely mailing the appeal.

(6) IRC 7508 and IRC 7508A postpone certain time-sensitive acts when a person is serving in the Armed Forces in a combat zone or serving in support of such Armed Forces, or there is a presidentially declared disaster. Rev. Proc. 2018-58 includes the time period for requesting a CDP lien or CDP levy hearing as acts that may be postponed. Though not specifically listed in Rev. Proc. 2007–56, IRC 7508 and IRC 7508A apply to EH requests as well.

(7) There are times when the envelope is missing or the postmark, meter or fax transmission date is not legible.

(8) The CDP notice sent to the taxpayer is the controlling notice for determining timeliness. The letter transmitting the POA's copy of the CDP notice and the taxpayer's CDP notice should have the same issuance date. However, if the POA sends his/her copy of the CDP notice with the hearing request, verify that the POA's copy and the taxpayer's controlling copy have the same issuance date.

(9) If the POA's copy of the CDP notice does not match the date of the taxpayer's CDP notice, you must use the taxpayer's copy. The courtesy copy sent to the POA does not meet the requirements of IRC 6320(a)(2) and IRC 6330(a)(2), which are:

1. Delivered the notice personally to the taxpayer;

2. Left at the taxpayer's dwelling or usual place of business; or

3. Sent by certified or registered mail to the taxpayer's last known address

(10) The CDP hearing must include the tax periods on the taxpayer's CDP notice in the hearing. Do not include additional tax periods listed on the POA's letter.

(1) Verify and document the following in the CAR within 30 days of receipt of a case:

1. Whether the request for hearing was timely

2. If timely, that the statute is suspended on IDRS with the correct date and closing code

3. The statute on the case summary card is correct

4. For EH cases only, the case summary card displays the earliest CSED

(2) IDRS Transaction Code (TC) 520 with the following closing codes (cc) are used to systemically suspend the statutory period of limitation on collection after assessment, or CSED:

• 76 - CDP lien (Case Type = DPLN on ACDS) or combination CDP lien and levy (Case Type = DPL2 on ACDS) cases

• 77 - CDP levy (Case Type = DPLV on ACDS) case

(3) The following table reflects the TC 520 cc 76/77 dates for various manners of delivery and receipt of the hearing request. Note that a CDP notice may contain more than one address for a taxpayer’s response (for example, the address for submitting the hearing request and the address for submitting the payment voucher) and a taxpayer may inadvertently send the hearing request to an address on the notice other than the one for requesting a hearing.

If the hearing request is delivered by mail to any of the addresses shown on the CDP notice...

If the hearing request is hand-delivered...

If the hearing request is submitted electronically (via fax or E-fax)...

(4) In addition to TC 520 transaction codes, Appeals must also ensure the tax periods that are the subject of the CDP hearing contain the IDRS CSED suspension indicators. The suspension indicators for timely CDP cases are:

• P - for the primary TIN only

• S - for the secondary TIN only

• B - for both TINs on a joint liability

(5) The following table reflects the timeliness determination, statute verification and documentation requirements that are part of the initial case review:

(6) The following IDRS statute controls must be corrected immediately using the procedure outlined in the table that follows:

• Erroneous TC 520 entry (TC 520 input in case involving an untimely CDP hearing request)

• Wrong TC 520 date

• Wrong TC 520 closing code (76, 77)

• Wrong CSED suspension indicator (P, S or B)

(1) IRC 6320(b) and IRC 6330(b) require the hearing "be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax," which includes participation or involvement in any matter (other than a CDP lien or levy hearing) that the taxpayer may have had with respect to the tax and tax period shown on the CDP notice.

(2) Per Treas. Regs. 301.6320-1(d) and 301.6330-1(d), "Prior involvement exists only when the taxpayer, the tax and the tax period at issue in the CDP hearing also were at issue in the prior non-CDP matter, and the Appeals officer or employee actually participated in the prior matter."

(3) Prior involvement applies to EH cases. An EH is a "non-CDP matter". If you previously conducted an EH with a taxpayer for the same tax and period at issue in a CDP hearing, you've had prior involvement and may not conduct the CDP hearing without securing a Form 14041 waiver.

(4) A taxpayer may waive the "no prior involvement" restriction. For this purpose, use a Form 14041, Waiver Form for Right to Request A New Settlement/Appeals Officer under Section 6320 and/or 6330, and retain a copy with the administrative file.

(5) The prior involvement restriction only applies to the Appeals employee conducting the hearing, not the Appeals manager who signs the Notice of Determination or Decision Letter.

(6) An employee who previously served as a mediator involving the same tax and tax period at issue in the CDP or EH is considered to have had prior involvement.

(7) The following table contains examples to help determine whether you had prior involvement:

(8) If the hearing officer at the office closest to an individual taxpayer's residence, place of employment or school, or a business taxpayer's principal place of business had prior involvement and there are no other hearing officers located in that office, the taxpayer is not offered an in-person conference at that Appeals location unless the taxpayer waives the "no prior involvement" requirement. The taxpayer is offered an in-person conference at another Appeals office if the taxpayer otherwise qualifies for an in-person hearing.

(9) As long as there is no prior involvement, a taxpayer does not have a right to a hearing with a hearing officer other than the one assigned. If requested by the taxpayer, a case transfer may be considered per IRM 8.6.1.3, Transfer Procedures.

(1) IRC 6320(c) and IRC 6330(c) require Appeals to verify "that the requirements of any applicable law or administrative procedure have been met." This requires a thorough knowledge of tax law, regulations and Collection's administrative procedures in IRM Part 5, Collecting Process.

(2) The L&A review is required in all cases except:

• Disregarded hearing where the taxpayer is raising only frivolous issues

• Premature referrals

• Withdrawals

(3) Conduct the L&A review even when receiving a transfer and the prior Appeals employee conducted the review. The results of your review will appear in your decision/determination letter attachment.

(4) Conduct the L&A review regardless of whether the taxpayer specifically raises the issues in the table below. The review consists of verifying:

(5) IRC 6330(c)(1) does not require reliance on a particular document for verification. These items can be verified with IDRS command code TXMOD transcripts or Form 4340, Certificate of Assessments, Payment, and Other Specified Matters, and the administrative file from Collection, unless an irregularity is identified. An irregularity may require research beyond reviewing transcripts and the administrative file. TXMOD transcripts used to conduct your L&A review must be saved in the administrative file as they are necessary if the taxpayer petitions Tax Court.

(6) There is no need to specify the dates on which the L&A requirements were met unless the taxpayer identifies an irregularity in one of the requirements.

(7) You are not required to document the L&A review in the CAR. Documenting it in the decision/determination letter attachment meets the legal requirements. However, it may be advisable to document the results of your review in the CAR to recall them at closing.

(8) "Last known address" is the address provided by the taxpayer on the most recently filed and properly processed federal tax return unless the IRS is given "clear and concise notification" of a different address.

(9) "Clear and concise notification" is a written statement signed by the taxpayer and mailed to an appropriate IRS address informing IRS that the taxpayer wishes the address of record changed to a new address. In addition to the new address, this notification must contain:

1. The taxpayer’s full name

2. The old address

3. Taxpayer's SSN, ITIN or EIN

4. Joint return filers should provide both names, SSNs and signatures

(1) IRC 6330(c) provides two instances in which Appeals is precluded from considering an issue under CDP:

1. IRC 6330(c)(2)(B) - Liability is precluded if the taxpayer received a statutory notice of deficiency or otherwise had an opportunity to dispute the tax liability

2. IRC 6330(c)(4)(A) - An issue was raised and considered at a previous hearing under IRC 6320 or in any other previous administrative or judicial proceeding and the person seeking to raise the issue participated meaningfully in the hearing or proceeding

   Note: An administrative or judicial determination under IRC 7429 Jeopardy/Termination Assessment or Jeopardy Levy Review, does not preclude a taxpayer from challenging the existence or amount of the underlying tax liability in a CDP hearing. The IRC 7429 review does not determine the underlying tax liability but involves whether the jeopardy levy was reasonable and whether the method of calculating the assessment amount was done improperly.

(2) The phrase "previous administrative hearing" is limited to an Appeals hearing. The Appeals CAR from a previous hearing shows what issues the taxpayer presented as well as Appeals decision. Similarly, if a court entered a decision on the same issue in a judicial proceeding to which the taxpayer was a party, then the taxpayer is precluded from having the issue considered in the CDP hearing. If there is a question regarding whether an issue was previously "raised and considered" or whether the taxpayer "participated meaningfully," give the taxpayer the benefit of the doubt.

(3) See IRM 8.22.8, Liability Issues and Relief from Liability, for a discussion of liability issues precluded under IRC 6330(c)(2)(B).

(1) CSO cases have no CDP hearing rights. IRC 6305 states federal courts have no jurisdiction to restrain or review the assessment and collection of CSO cases. It also states neither the assessment nor the collection of CSOs are subject to review by the Secretary in any proceeding.

(2) Letter 3524, Final Notice - Notice of Intent to Levy, (delinquent child support balance due) is issued specifically for CSOs. The notice of assessment of tax and demand for payment and Letter 3524 are all that is required for IRS to initiate enforced collection on CSO cases.

(3) If Collection forwards a CDP/EH case to Appeals solely on a CSO, advise the taxpayer to contact the CSO agency to resolve the matter. Close the CDP as a premature referral per IRM 8.22.5.2.4.

(1) Appeals may disregard any portion of a CDP or EH request if it:

1. Is based on a frivolous position which the Service has publicly identified as such, or

2. Reflects a desire to delay or impede the administration of the federal tax laws

(2) If the entire CDP request is frivolous or reflects a desire to delay, the taxpayer is not entitled to a CDP/EH.

(3) Frivolous position: A hearing request containing a position identified as frivolous in Notice 2010-33 or any successor notices or revenue rulings.

(4) Desire to delay or impede the administration of federal tax laws: A hearing request containing a statement reflecting a desire to delay or impede the administration of federal tax laws that reflects one or more of the following:

1. A reason that is not a "specified frivolous position" but is a frivolous reason reflecting a desire to delay or impede federal tax administration

2. A reason that is not a "specified frivolous position" but is a based on moral, religious, political, constitutional, conscientious, or similar objections to the imposition or payment of federal taxes

   Note: With the exception of a legitimate, unsettled constitutional question, such objections reflect a desire to delay or impede the administration of federal tax laws.

   Example: The taxpayer's request states he is not required to pay federal income taxes because the Oklahoma Constitution exempts him from having to pay federal taxes. Even though this position is not a "specified frivolous position" listed in Notice 2010-33, it is still frivolous as it shows a desire to delay or impede federal tax administration.

   Example: The taxpayer's request states the interest she earned on unregistered, publicly offered long-term bonds issued by a state government is exempt from federal income tax by the 10th Amendment to the Constitution. The Supreme Court has held that it is not unconstitutional for Congress to tax such interest (see South Carolina v. Baker, 485 U.S. 505, 108 S. Ct. 1355, 99 L. Ed. 2d 592 (1988)). Even though this is not a "specified frivolous position" listed in Notice 2010-33, it is well-settled law that such interest is taxable. This position demonstrates the taxpayer’s desire to impede the administration of taxes. Ensure the taxpayer is aware of the Supreme Court decision before disregarding the position or hearing request.

   Example: The taxpayer's request states he wants his federal taxes waived because he's entitled to his own personal bailout. The taxpayer objects to government bailouts of banks and believes he's entitled to equal treatment. Even though this is not a "specified frivolous position" listed in Notice 2010-33, it is frivolous and shows a desire to delay or impede federal tax administration.

(5) Hybrid: A hearing request where the taxpayer raises at least one relevant issue in addition to frivolous, delaying or impeding issues. Appeals must proceed with a CDP/EH on the relevant issue(s) while disregarding the frivolous/desire-to-delay issues.

(6) See the table below to determine how to proceed with a frivolous or desire to delay CDP request:

(1) Taxpayers may not raise a non-CDP tax period liability by characterizing it as a "relevant issue" under IRC 6330(c)(2)(A). Appeals will not consider the substantive merits of a refund claim for a non-CDP tax period to determine whether there is an overpayment that could be applied to the CDP liability.

(1) Appeals conference practices are found in IRM 8.6.1.4, Conference Techniques Used by Appeals Technical Employees, and the following subsections:

• IRM 8.6.1.5.1, Conference Practice

• IRM 8.6.1.5.1.1, Circuit Riding

• IRM 8.6.1.5.5, Virtual Service Delivery (VSD), where it is available

  Note: VSD employs teleconferencing technology permitting virtual face-to-face meetings from remote locations.

(2) The Substantive Contact (SCL) Letter offers taxpayers the opportunity for an in-person conference. Individual taxpayers who request and qualify for an in-person conference will be accommodated following procedures in , IRM 8.6.1.5.1.1, Circuit Riding, or IRM 8.6.1.5.5, Virtual Service Delivery. Employees will use these procedures to afford taxpayers an in-person conference at an Appeals office closest to their residence or principal place of business.

(3) If the taxpayer is entitled to a CDP hearing but neglects to participate, a review of the documents in the case file constitutes the CDP hearing.

(4) An in-person conference will not be offered in the following circumstances:

1. Taxpayers identified as potentially dangerous, without Criminal Investigation or Treasury Inspector General Tax Administration protection at the meeting. See IRM 25.4, Employee Protection, for additional information about Potentially Dangerous Taxpayer and Caution upon Contact Programs.

2. Taxpayers who have not retracted a frivolous, delaying or impeding argument that was included in their hearing request.

3. Taxpayers who are not eligible for the collection alternative they seek, based on IRS policy.

(1) Audio recordings are allowed in in-person conferences if a taxpayer provides:

• 10 days advanced notice, and

• Their own recording equipment

(2) Review Notice 89-51, 1989-1 C.B. 691 for audio recording procedures. While this Notice requires 10 days advanced notice before a conference is to be recorded, Appeals may choose to waive this requirement.

(3) Inform your ATM of audio recording requests and make an audio recording of the conference with IRS equipment.

(4) The right to make an audio recording of an in-person conference does not extend to telephone conferences. If you become aware that a taxpayer or representative is recording or attempting to record a telephone conversation, advise that the recording must stop. If the recording is not stopped, terminate the call and document your case activity record.

(5) Taxpayers raising frivolous issues are not eligible for an in-person conference and thus, not eligible to make an audio recording of an Appeals conference.

(6) Appeals allows stenographic recordings by court reporters provided they have the following credentials and the taxpayer qualifies for an in-person conference:

1. Qualified as a court reporter of the United States District Court,

2. An independent reporter qualified to take depositions for use in a United States District Court, or

3. Licensed or certified by any state to be a court reporter or to take depositions

(7) Appeals audio records any conference where a stenographic recording is made and request a copy of the stenographer's record. If costs involved are too high, do not secure a copy of the stenographer's record.

(8) Additional audio recording procedures for Appeals are found in IRM 8.6.1.6,Audio and Stenographic Recording of Conferences.

(1) Executive Order 13166, "Improving Access to Services for Persons with Limited English Proficiency” requires Federal agencies to:

1. Examine the services they provide,

2. Identify needs for services to those with limited English proficiency (LEP), and

3. Develop and implement a system that ensures meaningful access to necessary services for LEP persons

(2) Guidelines and procedures for implementing Executive Order 13166 are found in IRM 22.31.1, IRS Language Services.

(3) IRS contracts with an outside vendor to provide over-the-phone interpreter (OPI) services in over 170 languages. A conference using the OPI service consists of the Appeals employee, the taxpayer and the interpreter. The OPI service is fast, easy to use and available to everyone in Appeals. Step-by-step instructions for using the OPI service as well as other useful links and information are available on the Appeals Multi-Language Strategy (MLS) web page.

(4) Per guidance issued by Disclosure, a minor child can serve as an interpreter for his/her parent during an Appeals conference.

(5) A CDP may be transferred to an Appeals office with required cultural knowledge even if it does not otherwise qualify for transfer or an in-person conference.

(1) Recognize and be sensitive to taxpayers with issues that require specialized:

1. Industry knowledge (e.g., oil and gas, agriculture)

2. Legal expertise (e.g., community property law)

(2) A CDP case may be transferred to an Appeals office with necessary industry or legal knowledge even if it does not otherwise qualify for transfer for an in-person conference.

(1) Deadlines in CDP are determined on a case-by-case basis and often communicated in the SCL. Before establishing a deadline, consider:

• The complexity or volume of information needed, and

• The circumstances of the taxpayer

(2) Allow at least 14 calendar days for a taxpayer to collect and provide information necessary for considering collection alternatives or issues of dispute.

(3) Allow at least 21 calendar days for a taxpayer to file or amend a tax return.

(4) If a taxpayer requests an extension of time to provide information requested, the deadline may be extended.

(5) If a taxpayer fails to provide information requested, proceed based on the information available and note this in your determination/decision. A taxpayer's failure to provide information requested precludes Appeals from considering collection alternatives.

(1) If a taxpayer does not respond to the SCL letter, you must make a second attempt at contact. In such instances, your case history must reflect a minimum of 2 contact attempts.

(2) Letter 4000, Collection Due Process Last Chance Letter, is the preferred method for the second contact attempt. If the second attempt is made by telephone, document it in the CAR.

(3) For the second contact attempt:

1. Give the taxpayer a reasonable and specific deadline to respond. As a general rule, allow 14 calendar days

2. Ask the taxpayer if he/she has any further information for consideration

3. Inform the taxpayer that Appeals must proceed with its determination(s) based on the administrative file and whatever other information the taxpayer previously provided if the taxpayer does not respond

4. The issuance of Letter 4000 does not preclude giving the taxpayer a second opportunity for a CDP conference if the circumstances warrant.

(4) A well documented administrative file with copies of all correspondence is critical in such cases. If a taxpayer petitions claiming you did not allow a reasonable opportunity to participate or respond, the Tax Court relies on the administrative file to evaluate whether you abused your discretion.

(1) Select one (or both) of the following paragraphs appropriate to the CDPTD:

1. CDP-EH request was untimely USPS postmarked or metered, or was received greater than one-year after issuance of the CDP notice

2. CDP hearing request was untimely received and the taxpayer did not request an EH.

   Note: If you select both paragraphs you need to clearly identify which tax periods apply to each paragraph.

(2) Enter the periods for which Appeals does not sustain Collection's timeliness determination in the "Remarks" section of Form 5402.

(3) Procedures for CDPTD paperwork:

1. Provide a copy of Form 5402 to Shared Administrative Support for entry of the ACAP date on ACDS.

   Note: There is no need for a Shared Administrative Support or ATM signature on the form.

2. Provide copy of Form 5402 to APS to close case on ACDS

3. Return Form 5402 to the Outlook e-mail address of the originator of the referral.

(4) Use the table below to determine the closing code for a CDPTD case where Collection considered the CDP request untimely:

(5) Use the table below to determine the closing code for a CDPTD case where Collection considered the CDP request to have been perfected late:

(6) Use the table below to determine the closing code for a CDPTD case where Collection considered the EH request untimely:

(7) Use the table below to determine the closing code for a CDPTD case where Collection considered the CDP request to have been perfected late: