13.1.7. Taxpayer Advocate Service (TAS) Case Criteria

(1) TAS has identified criteria to qualify taxpayers for TAS assistance, which includes an independent review by a TAS employee of the actions taken or needing to be taken to resolve the problems taxpayers are experiencing. TAS Criteria 1-9 reflect situations requiring acceptance of taxpayer cases to be worked by TAS. TAS commonly refers to Criteria 1-4 as “Economic Burden” cases, Criteria 5-7 as “Systemic Burden” cases, Criteria 8 as “Best Interest of the Taxpayer” and Criteria 9 as “Public Policy.”

(1) IRS employees working taxpayer issues are responsible for determining when a taxpayer’s issue meets criteria for referral to TAS.

(2) TAS employees are responsible for making case acceptance determinations and will take appropriate actions to move a taxpayer’s issue to resolution while taking the taxpayer’s best interests into consideration based on the procedures in this IRM section.

(1) Pursuant to IRC 7803(c), the Office of the Taxpayer Advocate (known as the Taxpayer Advocate Service (TAS)) shall assist taxpayers to resolve problems with the IRS.

(1) Reports to monitor the quality of TAS cases are derived from TAMIS and the TAS Quality Review Program’s review database. Monthly, quarterly, and fiscal year cumulative reports as well as drill down reports are available for data analysis.

(1) Exhibit 13.1.7-2 contains a list of terms and their definitions used throughout this IRM.

(1) Exhibit 13.1.7-3 contains a list of acronyms and their definitions used throughout this IRM.

(1) All related IRM resources are listed in Exhibit 13.1.7-1, General Response Time Guidelines.

(2) Exhibit 13.1.7-4 contains a Crosswalk which matches Case Criteria to IRC 7811 and Treas. Reg. 301-7811-1.

(3) TAS Case Determination tool is used to determine if a taxpayer’s issue meets one of the exceptions to TAS case acceptance criteria.

(1) Criteria 1 – Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1, the taxpayer is experiencing economic harm or is about to suffer economic harm. The economic harm may be the result of actions by the IRS or created because of circumstances in the taxpayer’s personal life.

IRC 7811(a)(2)(A), (C), and (D) outline three examples of significant hardship that are categorized below as Case Criteria 2, 3 and 4. Economic harm situations require TAS’s assistance but do not fall under these criteria will be captured under Case Criteria 1.

(2) Criteria 2 -- Per IRC 7811(a)(2)(A) and Treas. Reg. 301.7811-1(a)(4)(ii)(A), the taxpayer is facing an immediate threat of adverse action. Most situations will involve an action by the IRS, such as filing a Notice of Federal Tax Lien, serving a Notice of Levy, or seizing property.

Threat of adverse actions can also involve the taxpayer’s personal situations, such as utility cutoffs or evictions. Such actions may result in negative financial consequences or economic burden to the taxpayer. A warning of impending action that will negatively impact the taxpayer is considered a "threat." An immediate threat is defined as an action that will take place in the very near future.

(3) Criteria 3 -- Per IRC 7811(a)(2)(C) and Treas. Reg. 301.7811-1(a)(4)(ii)(C), the taxpayer will incur significant costs if relief is not granted (including fees for professional representation). Situations where the IRS is unable to immediately make adjustments, process returns, release a lien, etc., could result in the taxpayer having to incur significant costs. Significant costs could include professional fees for representation.

(4) Criteria 4 -- IRC 7811(a)(2)(D) and Treas. Reg. 301.7811-1(a)(4)(ii)(D), the taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted. This includes situations where a taxpayer may lose assets, income, or potential income if relief is not provided. Some situations include loss of the ability to be licensed or bonded as part of the taxpayer’s occupation, or loss of borrowing power or clients due to filing of a Notice of Federal Tax Lien. Other situations may involve damage to credit ratings resulting in denial of a loan.

(1) Criteria 5 -- Per IRC 7811(a)(2)(B) and Treas. Reg. 301.7811-1(a)(4)(ii)(B) and (iii), the taxpayer has experienced a delay of more than 30 days to resolve a tax account problem. See also Treas. Reg. 301.7811-1(a)(4)(iv) Example 2.

1. Where there is an established time frame for a specific action based on an IRM, IRS form, or other official document, Criteria 5 is met when the problem or inquiry is delayed more than 30 days beyond the normal response time for the particular action. Refer to Exhibit 13.1.7-1, General Response Time Guidelines, for established normal response times on various (not inclusive) issues.

   Example: A taxpayer files an individual income tax return with a Schedule C claiming business expenses. The taxpayer received a notice ten months ago that the return was selected for examination and provided the requested documentation. The taxpayer has received no further contact from the IRS which is a delay of more than 30 days beyond normal response time.

   
   

2. Where there is no established time frame for a specific action based on an IRM, IRS form, or other official document, Criteria 5 is met when the problem or inquiry is delayed more than 30 days after the initial date the taxpayer made a request for IRS assistance.

   Example: A taxpayer received an examination determination from a revenue agent. On January 10, the taxpayer wrote to the IRS, requesting an interest calculation so they could pay the account in full. On March 1, the taxpayer contacts TAS for the interest calculation because they did not receive a response to their letter. Since more than 30 days have passed from January 10, Criteria 5 is met.

   
   

3. Criteria 5 may be met when the IRS sends multiple interim responses and no other actions by the IRS have been taken. Interim letters can extend prescribed time frames unless the delay is extensive or unreasonable. Judgment should be used to determine if the operating division or function’s delay is justified or whether it is an unwarranted delay.

   Example: A taxpayer writes to the IRS for an abatement of their federal tax deposit penalty on June 12. The taxpayer receives a response from the IRS on July 1, acknowledging receipt of the letter and informing them it will be another 30 days before their inquiry can be answered. On July 27, the taxpayer receives another IRS letter stating it will take an additional eight weeks for a reply. The TAS employee checks IDRS information and no action has been taken by the IRS on the taxpayer’s account other than sending the second interim correspondence. The taxpayer’s circumstances meet Criteria 5.

   
   

4. Delays due to taxpayer unresponsiveness will not meet Criteria 5.

   Example: A taxpayer writes to the IRS for an abatement of their federal tax deposit penalty on June 12. The taxpayer receives a response from the IRS on July 1, acknowledging receipt of the letter and requesting additional information by July 12 to abate the penalty. On July 27, the taxpayer receives another IRS letter with a second request for information. The taxpayer has not submitted any information for consideration. The taxpayer contacts TAS for assistance on August 1, stating the penalty has not been abated. The TAS employee checks IDRS and determines from the history items that multiple requests for information were sent to the taxpayer. The TAS employee asks if the taxpayer has received any contact from the IRS. The taxpayer states they did receive a request for more information but has not mailed it in. This circumstance does not meet Criteria 5. However, TAS should still explain to the taxpayer what information the IRS, in general, needs to make a penalty abatement.

   
   

(2) Criteria 6 -- Per IRC 7811(a)(1)(B) and Treas. Reg 301.7811-1(a)(4)(ii), the taxpayer has not received a response or resolution to the problem or inquiry by the date promised.

(3) Criteria 7 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii), a system or procedure has either failed to operate as intended or failed to resolve the taxpayer’s problem or dispute within the IRS.

1. When a taxpayer specifically requests TAS assistance and no other case criteria is met, accept the case under Case Criteria 7. These cases meet TAS criteria because the taxpayer’s hesitance or unwillingness to work within the IRS structure to resolve their problem is an indication of a systemic failure. Document the conversation in the TAMIS history.

2. The following are examples of when an inquiry meets criteria 7:

(1) Criteria 8 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii); TBOR, the manner in which the tax laws are being administered raise considerations of equity or has impaired or will impair the taxpayer’s rights. Although many TAS cases may generally involve equity considerations or impair taxpayer rights, Case Criteria 8 should only be used if the case does not fit into any other TAS case criteria. Thus, if a case can be accepted into any other case criteria (1 – 7 or 9), the case should not be accepted under Case Criteria 8.

(2) Looking at the significant hardship requirement in IRC 7811 may be useful in making a Criteria 8 determination. Section 7811 provides “the National Taxpayer Advocate may issue a Taxpayer Assistance Order if the National Taxpayer Advocate determines the taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the Secretary. “Treas. Reg. 301.7811-1(a)(4), further explains that significant hardship means “a serious privation is caused or about to be caused to the taxpayer as the result of the particular manner in which the revenue laws are being administered by the IRS.” Thus, if a taxpayer is experiencing or about to experience a serious privation of taxpayer rights, then the case meets Criteria 8.

In considering whether a taxpayer is experiencing or about to experience a serious privation of taxpayer rights, consider whether any of the taxpayer’s rights have been impaired. See IRM 13.1.2.2.1, Taxpayer Bill of Rights (TBOR).

If any of these rights have been impaired and no other case criteria fits, it would be appropriate to accept the case under Criteria 8. If no rights have been impaired, next consider the equities. If the action the IRS is taking is not equitable, a case can also be classified as Criteria 8.

(1) Criteria 9 -- Per IRC 7811(a)(1)(B) and Treas. Reg. 301.7811-1(a)(4)(ii), the NTA determines compelling public policy warrants assistance to an individual or group of taxpayers. The NTA has the sole authority for determining which issues are included in this criterion and will so designate by memo.

(2) TAS issues interim guidance at least once every two years on case issues authorized for acceptance under Criteria 9. See e.g., IGM TAS-13-0123-001, Accepting Cases Under TAS Case Criteria 9, Public Policy.