This IRM provides general guidance to Field Collection employees related to all aspects of taxpayer contact, including actions required prior to, during and following such contact. It defines and establishes initial contact criteria and includes relevant references to fair tax collection practices and taxpayer rights.

Audience: Revenue officers in Field Collection are the primary users of this IRM.

Policy Owner: Director, Collection Policy, SB/SE is the policy owner of this IRM.

Program Owner: SBSE, Collection Policy, Offer in Compromise (OIC) is the program owner of this IRM.

Primary Stakeholders: Field Collection revenue officers and group managers are the primary stakeholders for this IRM.

Program Goals: This guidance contains procedures for effective taxpayer contact for Field Collection employees. Following these procedures ensures the protection of taxpayer rights, emphasizes employee safety and protection, and leads to timely and effective case resolution.

Upon receipt of a new case, conduct an initial analysis by:

Field employees face an inherent level of risk because of the nature of their work. There are important steps you can take when planning field visits to minimize the risk. Before going out on an appointment:

The Taxpayer First Act amended IRC 7602(c)(1)) and is effective for notices of third-party contacts and contacts of third parties made after August 15, 2019. Publication 1, Your Rights as a Taxpayer, and versions of the ICS-generated Letter 3164, Third Party Contact Letter, that predated the July 2019 revisions no longer satisfy the advance notice requirements of IRC 7602(c). A notice specifying that the IRS intends to contact third parties and specifying a time period (not to exceed one year) within which the contact(s) will be made generally must be issued at least 45 days before contact with a third party. When making initial contact, revenue officers should not initiate any third-party contacts unless advance notification has been provided and 45 days have passed.

For a single member limited liability company (LLC) with employment tax liabilities that accrued prior to January 1, 2009, attempt to determine whether the LLC or its owner is the liable taxpayer. See IRM 5.1.21.12.2, Employer Identification Number Requirements for an LLC, and IRM 5.1.21.12.3, EIN Requirements for the Owner of a Disregarded Entity, for guidance on how to make this determination. Update LLC addresses on ICS as appropriate.

If you identify officers or potentially responsible persons during initial analysis of corporate trust fund accounts, be alert for prior unpaid TFRP or other employment tax delinquencies.

If the liability includes unpaid corporate trust fund taxes, calculate the trust fund portion of the liability. The Automated Trust Fund Recovery (ATFR) program may be used for this purpose. Print calculation page 4 for presentation during initial contact.

If a taxpayer has a valid representative for some, but not all open tax periods, contact may be made with the taxpayer to validate representation prior to beginning the investigation. The contact may be made by mail, telephone, or field visit. A taxpayer contact made to secure an updated Form 2848 or Form 8821 is not an investigative contact. Initial contact guidelines and requirements in IRM 5.1.10 will not be applied to this type of contact. See IRM 5.1.10.7.2 for additional information on validating representation.

The unique factors of each case will determine the amount of research needed prior to initial contact and the depth of the financial investigation required for locating and verifying asset information. Refer to IRM 5.1.11, Delinquent Return Investigations, for detailed pre-contact and contact guidelines for delinquent return investigations.

Make prompt contact on all taxpayer cases.

Make actual contact with the taxpayer or taxpayer’s representative or document the actions taken to verify the taxpayer’s current address if field contact is attempted but contact not made, both within the initial contact time period. (See IRM 5.1.10.3.1, Initial Contact Time Frames.

Determine how best to ensure an effective initial contact on each case consistent with guidelines contained in IRM 5.1.10.3.2, Effective Initial Contact. In most cases, you should try to make initial contact with taxpayers in the field. For additional information on initial contact in Abusive Tax Avoidance Transaction (ATAT) cases, see IRM 5.20.12.2, Initial Contact.

You may attempt scheduling a field visit with a taxpayer or representative by sending an appointment letter, such as Letter 725, Meeting Scheduled with Taxpayer. If the taxpayer has not been issued a CP504, Final Balance Due Notice, for tax modules assigned, include Publication 594, The IRS Collection Process and Publication 1660, Collection Appeal Rights, with Letter 725. A completed Form 9297, Summary of Taxpayer Contact, should also be included, letting the taxpayer or representative know which items will be needed at the time of the appointment. The revenue officer should conduct the appointment to determine if a third-party contact is necessary. If third-party contact is necessary, see IRM 25.27.1.3, Notification Requirements. In special circumstances a revenue officer may issue the third-party contact notice (Letter 3164) required by section 7602(c)(1) at the same time the Letter 725 or other initial contact letter is issued when the revenue officer concludes that the third-party contact is the only means to obtain the necessary information. Such special circumstances, for example, would include prior experience with the same taxpayer who has demonstrated a pattern of uncooperative or unresponsive behavior that delays the collection of the tax due where third-party contacts were needed to obtain or verify necessary information. The revenue officer should consult with management prior to sending both letters simultaneously and document the ICS case history (establishing why they intend to contact third parties). Issuing an appointment letter does not represent taking a timely initial contact action unless it results in actual contact with the taxpayer or the representative within initial contact time frames as provided in IRM 5.1.10.3.1. If the taxpayer and/or representative receives an appointment letter and calls to confirm or reschedule, you should at a minimum ensure the taxpayer has received Pub 1 and answer any questions, confirm contact information and secure one or more levy sources.

If the taxpayer resides in a foreign country or in one of the U.S. Possessions or Territories, you may have limited ability to make telephone or field contact. In such cases make initial contact via registered mail whenever U.S. Postal regulations permit such use. See IRM 5.1.9.3.1(3), Notice of Collection Due Process (CDP) Hearing Rights, for details concerning situations where U.S. Postal Service is not available. The following only applies to taxpayers reachable during normal business hours during the revenue officer’s tour of duty.If you have located any phone numbers for the taxpayer during your pre-contact research and analysis and verified advance third-party notification requirements have been met, you must make a reasonable effort to contact the taxpayer by telephone before a registered letter will meet the initial contact requirements. A reasonable effort will include two attempts within the initial contact time frame.

Form 2246, Field Contact Card, is used to advise taxpayers or third parties how to contact the assigned revenue officer regarding an official IRS matter. It can be left at the taxpayer’s business establishment, residence, or with other persons if the taxpayers are not in when called upon. To avoid unauthorized disclosure, confidential tax information must not be written on Form 2246. As a general rule, the time frame for taxpayers to respond should be two business days. Revenue officers may use other reasonable time frames as warranted by the circumstances of the case. The time frame provided will serve to establish a date for follow-up action should the taxpayer fail to respond. When a taxpayer or representative calls in response to a field contact card, revenue officers will follow the actions described for appointment letters in IRM 5.1.10.3(4).

If initial contact with a taxpayer is not done in the field and is required (see the table below), the reason why it was not done in the field must be documented in the ICS history. The following table contains the criteria for valid initial contact:

All contacts and contact attempts should be documented in the ICS history, including efforts to verify taxpayer's address.

If the taxpayer has a representative with a valid power of attorney, then contact will be made with the representative. When contacting the POA, follow guidelines for effective initial contact (IRM 5.1.10.3.2). For BMF taxpayers, if initial contact is not at the taxpayer's place of business, and the contact does not result in full payment, a field visit to the taxpayer's place of business must still take place, as soon as practical. Visiting the taxpayer's business, assessing the operation, and viewing the assets will contribute to an informed collectibility determination. For IMF taxpayers with a representative, the initial contact does not have to be at the individual's residence; however, a field appointment to view the property or other assets and secure a financial statement will be necessary if the initial contact does not result in full payment.

Revenue officers will attempt to secure, review, and discuss financial statements in person in the field. If you are unable to secure a financial statement on initial contact, attempt to secure as much preliminary information as possible, e.g., verify receipt of Pub 1, returns due, number of employees, payroll, asset and income information, levy sources, etc. Document the ICS history accordingly. Schedule a face-to-face follow-up appointment to complete the financial statement at the taxpayer’s business, residence, or representative’s office unless the meeting will put the revenue officer at risk. If a risk is identified and documented, an appointment should be scheduled at the revenue officer’s post of duty. If the representative is not in the local area, and for additional guidance regarding securing financial statements, refer to IRM 5.15.1.2(4)-(10), Financial Analysis Handbook . If the taxpayer is unwilling to meet but agrees to provide the financial information, the financial statement may be secured by phone or correspondence. A field call must still be made to verify the assets if not already made. If the taxpayer is unwilling to meet in person, warn the taxpayer of enforcement action that may take place for failure to comply with the requests for information, and proceed with appropriate enforcement and/or administrative actions if the taxpayer is still unwilling to comply.

The public’s trust in the Agency has been affected by various external factors, such as the rise of IRS impersonation scams. Impersonation scams take many forms, such as phone calls, letters, and emails, in which IRS impersonators may threaten or intimidate taxpayers. Field employees working directly with taxpayers may face additional scrutiny or safety concerns due to taxpayer suspicion that they are not legitimate IRS employees. Skeptical taxpayers may contact local police despite being presented IRS-issued identification. In some cases, responding police officers may not be satisfied with the official identification and may ask to contact the IRS for verification. If you are asked by local law enforcement to provide a contact for verification of identity, advise them to please call the Department of Treasury BEP Police Operations Center at (202) 874-0911. Use the HSPD-12 identification to verify your identity.

You are required to respond promptly to customer requests or concerns. Return calls as soon as practicable after receiving a voice message. Check messages at least daily (more than once when able) to ensure taxpayers receive a timely response.

When out of the office for extended periods of time, leave a message on the telephone (and email for IRS personnel only) to direct the caller to an alternate person for assistance. Voice greetings should contain a secure fax number where taxpayers/practitioners can send requested information.

When leaving a calling card or phone message for a taxpayer to return a call, provide a specific date and time for the call to be returned.

Some of the pre-printed letters available to correspond with taxpayers include the following:

Any letter required by statute (Letters 1058, 2975, 3164, 3172, 2439, etc.) relating to a joint return under IRC § 6013 must be sent separately to each individual who filed the joint return.

This requirement also extends to letters not required by statute that contain the elements of a notice and demand (amount of tax due stated and payment of tax due demanded) such as Letters 728, 3220, and 3221.

When the owner of a limited liability company (LLC) is the liable taxpayer, Letters 1058, 2975, 3172, and 2439 must be issued to the owner, not to the LLC. For example, see IRM 5.1.21.6.1, Collection Due Process Notice.

IRC § 6304 imposes certain restrictions with respect to IRS communications with taxpayers regarding unpaid tax. This provision specifically prohibits the IRS from harassing or abusing taxpayers.

This law applies to communications with all taxpayers, including business entities.

Violations of IRC § 6304 could subject the United States to civil action (IRC § 7433) by the taxpayer. Violations of IRC § 6304 could also subject IRS employees to termination for misconduct.

Awareness of taxpayer rights is vitally important. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. The following taxpayer rights are in Pub 1, and are addressed in IRM 5.1.9, Collection Appeal Rights, and throughout IRM Part 5.

Collection will use the Integrated Collection System (ICS) history functionality to record actions and decisions taken on cases. It is extremely important that ICS history entries be clear, accurate, concise, complete, and timely. Entries should be made in chronological order and should be recorded the day the action occurs or as soon as practical thereafter.

Certain actions taken by ICS users generate systemic history entries. Management may determine the type and degree of additional documentation required. Items such as resolution plan, action expected of taxpayers, target dates established, taxpayer compliance, plan for next actions, enforcement actions, financial analysis, etc., should be included as part of the ICS history. ICS pick lists are available to record many of these actions. ICS pick lists must be used when documenting the following actions: taxpayer contact, taxpayer or asset location activity, FTD verification, and closing narrative (for BMF accounts.) Not all items in the Taxpayer Contact and the Taxpayer Asset Location pick list "submenus" will be applicable in every case. Pick list Items in these submenus are mandatory only when applicable to the contact or action. For example, if Pub 594, The IRS Collection Process, is not discussed, no entry is required. However if discussed, the pick list should be used to document the action.

A history entry should be made to reference an action even though a form or document relative to the action is in the case file.

When related IMF and BMF accounts are present, the cases should be cross–referenced; separate histories are maintained by ICS.

When a Non-Master File account is present with a related Master File account sharing a TIN, ICS maintains separate histories and permits narrative history to be written to both history files with one posting.

When Form 2747, Investigation History, exists for the older part of the case history, it should remain associated with the case file when the case is closed.

ICS users accessing a non-assigned case are encouraged to write a brief narrative history explaining the access.

All requests for deletion of ICS history must be in writing. The request should state exactly which history entry is to be deleted and explain why the request is being made, e.g., history documented in the wrong case. The concurrence of the territory manager must be noted on the request prior to the deletion. The ICS/Entity Quality Analyst performing the deletion should maintain the request with a print of the history before and after the deletion until the case records are deleted from the ICS archives. Entries in the wrong case may present disclosure issues. See IRM 11.3.38.5, Reporting Suspected Willful Unauthorized Accesses or Disclosures, for further guidance on how to report inadvertent disclosures.

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3707, prohibits the use of any tax protester designation to describe the taxpayer. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use. You may document the taxpayer’s behavior by using such terms as “frivolous filer”, “frivolous arguments” or “tax avoidance”. Refer to The Truth About Frivolous Tax Arguments on the IRS website for information about common frivolous “legal” arguments made by individuals and groups who oppose compliance with federal tax laws. The document also responds to some of the more common frivolous arguments made in collection due process cases brought pursuant to IRC § 6320 or IRC § 6330.

Taxpayer records of any kind, including copies of checks, cannot be maintained by Collection personnel after disposition of the account. All records must be disposed of in accordance with approved records control schedules.

Do not copy and paste emails or other communications to or from IRS Counsel (legal advice) into case histories. Including such communications in case histories may make it more difficult to assert a legal privilege in withholding the legal advice in response to a discovery or Freedom of Information Act (FOIA) request. Instead, include the legal advice in the case file with a notation of the fact of the legal advice in the case history, for example, legal advice received from IRS Counsel on January 10 2020, see case file.

The deadline given to a taxpayer or representative to comply with a request for information or action should be reasonable with respect to the information or action requested. When setting a deadline, ensure that sufficient time is calendared to carry out follow-up actions if the deadline is not met.

When a taxpayer or representative misses a specific deadline, initiate follow-up action within fifteen (15) calendar days unless special circumstances warrant a delay, such as in some International cases. Such circumstances should be clearly documented.

If the TP requests an extension, use your discretion in granting it. Document your decision and its basis. Issue Form 9297 when a new deadline is set in face-to-face meetings with the taxpayer or representative.

Follow-up action should move the case toward resolution. Remember to create and update a plan of action that moves your case toward resolution and to schedule simultaneous case actions where appropriate. Follow-up actions include, but are not limited to, the following:

Take follow-up actions simultaneously, as appropriate.