Purpose. This IRM provides guidance to ROs on collection tools for International cases.

Audience. These procedures and guidance apply to Small Business/Self-Employed (SB/SE) Field Collection (FC) ROs, FC revenue officer group managers (RO GMs), territory managers and area directors; however, employees in other organizations and functions may also refer to these procedures as appropriate.

Authority. Congress has delegated to the IRS the responsibility of administering the tax laws, known as the Internal Revenue Code, found in Title 26 of the United States Code. Congress enacts these tax laws, and the IRS enforces them.

Policy Owner. The Director, Collection Policy is the policy owner.

Program Owner. The program owner is Collection Policy, Global Strategic Compliance, within the Small Business Self-Employed (SB/SE) division.

Primary Stakeholders. The primary stakeholders are SB/SE Field Collection (FC).

Program Management and Review. International Reviews:

Program Goals. In working a Collection case, ROs may find indications the taxpayer resides outside of the U.S. or owns assets that are located outside the borders of the U.S. ("offshore"). Collecting from these taxpayers can present unique challenges. Assisting ROs with understanding how to approach the challenges presented with offshore taxpayers is one of the goals of this program.

Contact Information. Recommendations and suggested changes to this IRM should be e-mailed to the Content Product Owner. The owner is indicated on the Product Catalog Information page which is found in the Form/Pubs/Products IRM listing of the Media and Publications web site.

Additional information and guidance on international collection issues can be found in the following IRM sections:

Additional information can also be found at Knowledge Management, Collection Floor, International Tools and Actions & Examination Floor, International pages.

There are instances where funds held offshore can be reached by a levy if the bank has a branch in the U.S. or in a territory of the U.S.

Treasury Regulations 26 C.F.R. 301.6332–1(a)(2) outlines the procedures for levy when a bank is in business in the U.S. with deposits held in a branch outside the United States.

The regulations provide two different sets of procedures with regard to a levy on bank deposits held in offices outside the United States depending on whether or not the taxpayer is or is not within the jurisdiction of the U.S. court at the time the levy is made.

The following is an example of one type of situation in which a levy should be made on a domestic branch of a financial institution to reach funds held offshore.

Research available sources to locate the foreign bank account. FATCA research needs to be conducted if a FATCA indicator is present on ICS.

Check IDRS command code IRPTR which may indicate:

Check IDRS command code RTVUE to determine if the taxpayer has filed Form 8938, Statement of Specified Foreign Financial Assets. The "CC CD" indicator (or Computer Condition Code) will include an "H " to indicate that Form 8938 was filed. If Form 8938 has been filed, ESTAB the return to view the return information. This may lead to identification of a foreign account or asset.

Prepare the notice of levy and write this statement on the front of the notice: The Area Director intends to attach funds held outside the U.S. or U.S. Territory. Prepare a memorandum to Area Counsel and include as much specific information as possible regarding

Area Counsel will return the package to Advisory who will forward it to the RO. If the notice of levy is approved by Area Counsel, the RO will sign the notice of levy as the delegate of the Area Director. There may be circumstances where the RO must perfect the approved notice of levy prior to signing. For example, the RO may need to follow Area Counsel direction as to specific language required on the notice of levy or the RO may need to update the penalties and interest on the notice of levy.

Serve the notice of levy in person at the domestic branch, if possible, or send the levy via certified mail.

Writ Ne Exeat Republica is an action authorized by IRC 7402(a). Writ Ne Exeat Republica is the appropriate suit action when the taxpayer:

A Writ Ne Exeat Republica is an action against a person, not property. It is a temporary remedy, and not intended to operate as a perpetual restriction upon a taxpayer’s freedom of movement.

Writ Ne Exeat Republica is usually filed in conjunction with some other civil action against the taxpayer such as a Suit to Foreclose the Federal Tax Lien, a Repatriation Order, or a Summons Enforcement. The purpose of a Writ Ne Exeat is to preserve the court’s power to provide a means of protecting the government’s ability to collect the tax by another means. The writ ne exeat republica is filed to prevent taxpayers from removing themselves and their assets from the territorial jurisdiction of the U.S. The RO will have to show that the other civil action they propose will not be enforceable unless the defendant is prevented from removing himself or his assets from the country.

Consider these factors when determining whether or not to file a Writ Ne Exeat Republica:

Before recommending a suit seeking a Writ Ne Exeat Republica:

If the taxpayer is not in the United States, secure evidence they are likely to return at a specific time and place. This is needed to establish jurisdiction. It is also important to demonstrate the taxpayer is expected to remain in the U.S. for a short period of time. If the taxpayer is returning to the U.S. permanently, a Writ Ne Exeat Republica is not appropriate. Sources for this evidence include:

Develop a request for a Writ Ne Exeat Republica, as applicable. Pay careful attention to the personal circumstances of the taxpayer, such as age, health, family status, and employment. Specific facts that must be covered are as follows:

The steps to initiate a suit requesting a Writ Ne Exeat Republica are as follows:

A Writ Ne Exeat Republica and the corresponding order may be

Writ Ne Exeat Republica provisions generally include that the taxpayer is

After a Writ Ne Exeat Republica is issued:

A Customs Order or Prevent Departure Order is an administrative action similar to the Writ Ne Exeat Republica. A Customs Order can prevent a non-U. S. Citizen from exiting the United States, pending the resolution of a collection matter.

The authority for a Customs Order is found in 22 C.F.R. 46.2(a) which states in part "...No alien shall depart, or attempt to depart, from the United States if his departure would be prejudicial to the interest of the United States under the provisions of 46.3." In addition, C.F.R. §46.3(h) applies to a collection investigation where it states, in part, "Any alien who is needed in the United States in connection with any investigation or proceeding being, or soon to be, conducted by any official executive, legislative, or judicial agency in the United States or by any governmental committee, board, bureau, commission, or body in the United States, whether national, state, or local."

Coordinate with Area Counsel before requesting a Customs Order or Prevent Departure Order. Area Counsel will coordinate as necessary with the Office of Associate Chief Counsel (International).

If the alien is found attempting to exit the U.S., they will be detained and the RO will be notified and requested to provide instructions to the Customs officer.

The Appointment of a Receiver is a civil action brought in the U.S. District Court under the authority of IRC 7402(a).

A receivership places a responsible individual, known as the receiver, who works under the direction of the court in control of the taxpayer’s assets. The receiver controls and conserves the assets or liquidates the assets in an orderly and efficient manner.

Appointment of a Receiver is usually in conjunction with a repatriation order and/or a Writ Ne Exeat Republica. For domestic assets, a Suit to Foreclose the Federal Tax Lien may accompany the Appointment of a Receiver.

When considering Appointment of a Receiver, the following conditions must exist:

The receiver is not an agent or representative of the Government. They act under the control and authority of the court and may make decisions which are not favorable to the Government.

A receiver’s duties include:

Consult Area Counsel prior to considering a request for an Appointment of a Receiver. Area Counsel will coordinate as necessary with the Office of Associate Chief Counsel (International). Develop a request for an Appointment of a Receiver as applicable.

A Repatriation Order is an order issued by a federal judge, after a hearing, requiring a taxpayer who has either transferred assets from the U.S. to a foreign country or acquired assets in a foreign country to transfer them back into the United States.

A Repatriation Order must show:

Before recommending a suit seeking a Repatriation Order:

The steps to initiate a Suit to Repatriate Property are as follows:

If the suit is successful, the court will order the taxpayer to return the property to the United States.

Consider a Repatriation Order in concert with all other possible actions that fit the facts of the case such as Appointment of a Receivership, a Suit to Reduce the Tax to a Judgement, and a Writ Ne Exeat Republica.

The IRS can request assistance from certain treaty partners to collect taxes owed by individuals residing and/or having assets in the treaty country. This request is an outbound MCAR. There are six mutual collection income tax treaty partners:

These treaties provide that each of these countries, upon request by the United States, may take whatever actions it would take to collect its own taxes in order to collect on behalf of the United States. This includes the collection of U.S. taxes through the treaty partner's bankruptcy proceedings. See IRM 5.21.7.4.8, Outbound Mutual Collection Agreement Request, for guidance on issuing an outgoing MCAR request.

This IRM provides guidance on cases that meet the definition of an international case as defined in IRM 5.21.1.2, Definition of an International Case. Simultaneous use of international tools helps the ROs (ROs) understand the issues involved and the steps necessary to move the case to resolution.

A RO assigned a collection case with a U.S. domestic address may encounter international aspects during a case investigation. Simultaneous use of international tools is strongly recommended for effective case resolution when international aspects are present in the case, such as

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