25.16.9. Federally Declared Disaster, or Terrorist or Military Action Procedures for TE/GE

(1) This IRM provides guidance to TE/GE employees working cases with taxpayers affected by a federally declared disaster, or terroristic or military action (collectively, a "federally declared disaster") under IRC 7508A. This IRM is not a pronouncement of law and can’t be used, cited or relied on as law. Nothing in this IRM may be construed as affecting the operation of any other provision of the IRC or associated regulations and guidance.

(2) When the IRS issues a Declaration Notice under IRM 25.16.1.5.3, all IMF and BMF accounts with addresses in the area affected by the federally declared disaster (the "covered disaster area") designated by the Federal Emergency Management Agency (FEMA) as qualifying for "individual assistance" are frozen systemically for the period specified in the Declaration Notice (the "postponement period").

(1) The TE/GE Commissioner is the executive responsible for all work in the TE/GE operating Division.

(2) Executives of each TE/GE function are responsible for the work affecting their respective programs.

(3) Revenue Agents, Tax Compliance Officers, Tax Examining Technicians are responsible for:

1. Case work relating to their respective function.

2. Ensuring the instructions and procedures related to their work are carried out.

(4) For more information on TE/GE’s role in managing their mission-critical responsibilities, see IRM 1.1.23, Organization and Staffing, Tax Exempt and Government Entities Division.

(1) The table lists commonly used acronyms and their definitions:

(1) Generally, suspend contact with taxpayers and extend all due dates for taxpayer actions through the close of the postponement period.

(2) If you have the needed information and don’t have to contact the taxpayer, continue working the case. Keep the case open using your function’s appropriate status code.

(3) If the result is favorable to taxpayer, close the case with the appropriate action.

(4) For cases that can’t be closed with a –O Freeze in effect, contact the FAST Unit (*TEGE FAST) to remove the –O freeze, so you can close the case. The FAST Unit will put the –O freeze back on the module.

(5) If you can’t work the case because you need additional information, and you previously spoke with the taxpayer, contact the taxpayer/POA (you may call) and let them know we are suspending activity unless they want to move forward. If the taxpayer opts out of the postponement period, see below for further instructions.

(6) If you can’t reach the taxpayer by phone, use Letter 6017, Taxpayer Contact After Disaster – TE/GE.

(7) If you’re working on a closing agreement and the taxpayer has signed the agreement and made the payment, post the payment, make the assessment to balance the module, and close the case.

(8) If a 30-day letter is pending, notify the taxpayer that the response date may be extended until the last day of the postponement period.

(9) If you can’t reach the taxpayer by phone or mail, or if the taxpayer declines to proceed, and you can’t do any more work on the case, place the case in suspense and suspend all activity until the first business day after the close of the postponement period.

(10) Document the case chronology record with your actions.

(1) Soft contact involves approaching the taxpayer with caution and the utmost sensitivity to personal circumstances. Consider stress and fatigue even if the taxpayer didn’t experience any personal, monetary, or physical damage from the federally declared disaster. Call only if you’ve previously talked to the taxpayer. If you haven’t, you must use Letter 6017 to make contact. Immediately discuss any situation or questions about actions not addressed in this memo with your manager.

(2) Enclose a paper copy of Notice 1155, Disaster Relief from the IRS, or its contents, in any correspondence (other than Letter 6017, which states the contents of this notice) you send to a taxpayer during the postponement period. If you call the taxpayer, read the information from Notice 1155 to them so they’re aware of available assistance.

(1) Generally, case activities are permitted only at the taxpayer’s request (oral or written). Continue case activities involving taxpayer contact only if the taxpayer affirmatively requests. Document the taxpayer’s affirmative request in the case file before taking action. For cases with a –O Freeze in effect that can’t be worked, when you receive the taxpayer’s request to continue activities, contact the FAST Unit at *TEGE FAST to replace the –O freeze with a –S freeze.

(1) In some cases, the taxpayer may contact the IRS to self-identify as eligible for relief under a Declaration Notice. For these cases, contact the FAST Unit at *TEGE FAST to have the –O freeze entered on that taxpayer’s account.

(1) The following cases are not subject to suspension of examination activities:

• Cases involving jeopardy assessments

• Cases in AIMS status 18, Acceptance by Criminal Investigation

• Grand jury cases

• Cases other than those listed here but where the functional Director has determined an exigency exists, as described below.

(1) The following cases not subject to suspension of EO Rulings and Agreements activities:

• Form 1023-EZ rejections where taxpayer contact is not required

• Rejection of incomplete applications

• Acknowledgment or rejection of Form 8976 notifications

(1) Unstarted cases: Contact the taxpayer to determine whether the taxpayer wishes to continue with the case. If not, place the case into suspense, status 38 and hold the case in inventory.

(2) Ongoing cases: Follow the guidance for examination cases.

(3) Signed closing agreements received: If, before the postponement period, the taxpayer signed the agreement and paid the amount due under the closing agreement, continue to process the case through the Closing Unit. The closing letter and copy of closing agreement may be sent to the taxpayer.

(4) New requests: Send acknowledgement letters and assign requests received during the postponement period. Contact the taxpayer using soft-contact procedures to determine if the taxpayer wishes to proceed with the request. If not, then assign the case and work it until taxpayer contact is needed. If work on the case cannot continue during the postponement period without taxpayer input, place the case in status 38 until the first business day after the end of the postponement period.

(1) Unstarted cases: Contact the taxpayer to determine whether the taxpayer wishes to continue with the case. If not, place the case into Interim Action Code 21 - Suspense and hold the case in inventory.

(2) Ongoing cases: Follow the guidance for examination cases.

(3) Signed closing agreements received: If, before the postponement period, the taxpayer signed the agreement and paid the amount due under the closing agreement, continue to process the case through the Closing Unit. The closing letter and copy of closing agreement may be sent to the taxpayer.

(4) New requests: Send acknowledgement letters and assign requests received during the postponement period. Contact the taxpayer using soft-contact procedures to determine if the taxpayer wishes to proceed with the request. If not, then assign the case and work it until taxpayer contact is needed. If work on the case cannot continue during the postponement period without taxpayer contact, place the case in Interim Action Code 21 - Suspense until the first business day after the end of the postponement period.

(5) EP VC Corrective Actions: If the time allowed to complete corrective actions ends during the postponement period, the taxpayer will automatically be permitted an extension until the first business day after the end of the postponement period. If the time allowed to complete the corrective action ended before the start of the postponement period, no extension will be given.