This IRM section provides guidelines and procedures for working international cases that require special handling.

The authority for collection actions described in this Section is delegated from the Secretary of the Treasury. See IRM 1.2.2.6, Delegations of Authority for the Collecting Process, IRM 1.2.2.14, Delegations of Authority for Special Topics Activities, and IRM 1.2.65.3, SB/SE Functional Delegation Orders - Collection. These sections include:

The Director, Collection Policy, is responsible for overseeing policy and procedures regarding the International Collection Program.

Field Collection territory managers and group managers are responsible for ensuring compliance with the guidance and procedures described in this IRM.

IRM authors are responsible for drafting IRM procedures consistent with the Internal Revenue Code, regulations, and other legal guidance. IRM authors also clear sections of the IRM through the affected offices.

Program Reports:

Program Effectiveness:

Managerial approval of certain case actions by group managers, territory managers and area directors ensure compliance with procedural requirements.

International ROs use the Integrated Collection System (ICS) to manage their inventory and record their case activity.

This table lists commonly used acronyms and their definitions.

Additional resources can be found in:

The following publications are used for International Issues. They can be used as technical reference material or provided to taxpayer. These publications are available for reference on SERP and on the internet at http://www.irs.gov.

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.. For additional information about the TBOR, see https://irssource.web.irs.gov/Lists/General%20News/DispItemForm.aspx?ID=126

The USCA analyst working the case will identify Field status via IDRS. The USCA analyst will send an encrypted e-mail to the SB/SE Collection Policy (CP), Global Strategic Compliance analyst who acts as the insular area liaison.

The USCA e-mail will be worded as follows:

The CP analyst will copy the USCA analyst's e-mail message and paste it into the ICS history. It will be the obligation of the USCA analyst to notify the CP analyst when the case is closed. The CP analyst will make a note about the closure in the ICS history.

Consult your manager if you believe that suspension of collection activity will adversely impact the government's interest. Your manager may contact the USCA analyst to discuss the case and resolve any conflict.

Check IDRS command code AMDISA when there is a -L freeze on the account indicating open examination activity. If the case is assigned to a revenue agent, contact that agent before proceeding.

Determine if the liability is correct and not the result of an error by the QI or IRS. QIs can claim the withholding credits even though they are not assuming primary withholding responsibility.

Check Form 1042, line 67 to verify that the QI claimed the proper withholding credits. Also, verify the credits in IRS systems by checking IDRS command code IRPTRL and the Entellitrak (E-TRAK) system. The Accounts Management System (AMS) may also contain some of the information you need.

When ROs request the E-TRAK information, they must put something in the ICS history indicating that they sent the request to the group's E-TRAK resource person and include that person's name. GM approval is not required, and there is no need for the E-TRAK resource person to access the case to verify completion of the request.

Use internal sources such as IDRS to locate a telephone contact number for the QI or contact the QI team for assistance. If telephone contact is not successful, in order to meet your initial contact time requirement, you may send an appointment letter for a telephone meeting and enclose Publication 1,Your Rights as a Taxpayer.

Take the appropriate action in the following situations:

Contact the QI team prior to taking any further case action if no response is received from the QI. The QI team will send a letter to the QI requiring them to contact the revenue officer.

Verify that the QI did not contact the QI team before pursuing collection action.

Continue with normal collection actions if the QI does not contact you within 60 days, such as filing the notice of federal tax lien, issuing levies, etc.

) Each of the countries listed in IRM 5.21.7.4(3) may request assistance from the United States in collecting taxes owed to it. Such requests are called "Inbound MCARs." All inbound MCARs are sent to the USCA who is the only IRS official authorized to receive such request. When approved, the USCA will forward such inbound MCARs to SBSE for collection action.

The Service will not pursue collection on behalf of the treaty partner if the individual subject to collection is a citizen of the United States.

MCARs are sent by the treaty country to USCA. Only the USCA is authorized to receive such requests. MCARs come in the form of a written request. All MCARs must include a statement to the effect that the tax has been "finally determined," as required by each treaty. The USCA forwards inbound MCARs to SBSE for collection action.

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An MCAR contains the following information:

All inbound MCAR case referrals are maintained on the MCAR Database. The MCAR coordinator will add the inbound MCAR case referrals to the MCAR Database. The MCAR Database is used to track inventory, prepare the Foreign Tax Liability Certificate, prepare notices, letters, and post payments.

The MCAR coordinator will update the ICS case code/sub code accordingly.

Conduct research using IDRS, Accurint and other locator sources to locate the following information:

Since the Internal Revenue Code requires an assessment before the Service can take any enforcement action, the Service must prepare a Foreign Tax Liability Certificate. The foreign tax liability is shown in U.S. dollars (USD) on a Foreign Tax Liability Certificate.

The Letter 6195, Notice and Demand Under Internal Revenue Code Section 6303, First Notice - Reply in 10 days, Letter 6196, Final Notice, Notice of Intent to Levy, and Letter 6197, Request for Collection Due Process Hearing - Denied, are available in the Forms/Pub/Products Repository to complete and send to the taxpayer. If the MCAR liability is not resolved after the Letter 6195, Notice and Demand Under Internal Revenue Code Section 6303, First Notice - Reply in 10 days, Letter 6196, Final Notice, Notice of Intent to Levy, is sent to advise the taxpayer about possible distraint actions pertaining to the foreign tax liabilities identified in the MCAR notices.

The response from the taxpayer will determine the next action to take in an MCAR case.

Once a case is ready to be closed, the MCAR coordinator contacts the USCA to close the case back to the treaty partner. The letter should contain an explanation regarding the disposition of the case.

The MCAR Coordinator will route the closed MCAR case file to the Centralized Case Processing (CCP) Unit for storage according to record retention procedures. CCP will hold the closed MCAR case file for 90 days. After 90 days, CCP will send the closed MCAR case file to the Federal Records Center for a three-year retention period before the file is destroyed. (See Document 12990, IRS Records Control Schedules, RCS 28 for Tax Administration - Collection.)

All checks or money orders submitted voluntarily by taxpayers may be in either USD or the foreign currency of the particular treaty partner, but the foreign currency is preferred. If payment is in U.S. dollars, the liability is fully paid when the total payments match the dollar amount on the Foreign Tax Liability Certificate. If the payment is in the foreign currency, the tax liability is fully paid when total payments match the tax liability stated by the treaty partner in its currency in the MCAR letter.

The check or money order should be made payable to the treaty partner rather than the Service.

Do not accept payment in cash because Form 809. Receipt For Payment of Taxes, cannot be issued for MCAR liabilities.

If taxpayer requests a receipt of payment, provide the taxpayer with a date-stamped photocopy of the check or money order.

After the Letter 6196, Final Notice, Notice of Intent to Levy is sent to the taxpayer, and there is no response, or an insufficient response from the taxpayer, the MCAR coordinator will, if possible, utilize internal and external locator sources to find levy sources and/or locate taxpayers.

In situations where the notices are undelivered, the MCAR coordinator will issue a courtesy investigation to the appropriate Field Collection Area to make a field visit to taxpayer’s last known address.

Take the same enforcement actions as would be appropriate for a domestic Bal Due taxpayer, although the processing for certain distraint actions will differ slightly from that for domestic Bal Dues. See IRM 5.11.1.3.

If enforcement action is not taken on any assets, document why enforcement action was not taken against each identified asset. This documentation will assure the USCA that all possible efforts were made to collect the foreign tax liability.

Prior to preparing any levy for amounts due pursuant to an MCAR, check IDRS for any deficiencies owed by the taxpayer. If the taxpayer has deficiencies for U.S. tax, include these amounts in the levy.

If the taxpayer does not have a U.S. tax liability currently owing, proceed with the levy. Prepare all notice of levy forms and follow the guidelines under IRM 5.11.2, Serving Levies, Releasing Levies and Returning Property, with the following exceptions:

If the taxpayer has deficiencies for U.S. tax and there is no domestic revenue officer assigned to collect the U.S. tax liability, contact your manager regarding further action. If a domestic revenue officer is assigned to collect the U.S. tax liability, coordinate collection with that officer using the following procedures:

Follow routine guidelines with respect to MCAR lien activity with the following exceptions:

Prior to preparing any seizure for amounts due pursuant to an MCAR, check IDRS for any U.S. deficiencies owed by the taxpayer. Any funds obtained from a seizure and sale will first be applied to US deficiencies, with any remaining funds applied to the MCAR.

Procedures for the seizure and sale of personal and real property are found in IRM 5.10.1.11, Mutual Collection Assistance Requests. Generally, IRM 5.10, Seizure and Sale, provisions apply to MCAR collection matters with the following exceptions:

In the instance of separate tax liabilities owed by a taxpayer to both the U.S. Government and the treaty partner and listed on the Form 668-B, apply the proceeds first to the expenses of seizure and sale, next to the U.S. liability, and then to the MCAR assessment. If the taxpayer has deficiencies for U.S. tax and there is no domestic revenue officer assigned to collect the U.S. tax liability, contact your manager regarding further action. If a domestic revenue officer is assigned to collect the U.S. tax liability, coordinate collection with that revenue officer using the following procedures:

The treaties listed in IRM 5.21.7.4 (3) provides that the Service may request assistance from each of those countries in collecting taxes owed to the United States.

If a taxpayer was a dual citizen of the United States and the foreign country, or alternatively, was a dual citizen of the United States and the foreign country during the tax period at issue, consult the MCAR coordinator assigned to the foreign country for advice on whether you can pursue collection.

These treaties provide that each country, 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.

Once the international or domestic revenue officer has reason to believe there are collectable assets in a treaty partner country, the revenue officer can prepare an outbound MCAR for approval.

All outbound MCARs require coordination with the MCAR coordinator.

The MCAR coordinators are listed on the Mutual Collection Assistance Requests (MCAR) web page. The direct link to the page is: http://mysbse.web.irs.gov/Collection/international/mcar/contacts/20805.aspx.

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Do not refer Del Ret accounts as treaty provisions prohibit the referral of Del Rets.

An International or domestic revenue officer should coordinate with the MCAR coordinator when they have any questions on the MCAR program or an MCAR case.

All outbound MCAR case referrals are maintained on the MCAR Database. The MCAR coordinator will add the outbound MCAR case referrals to the MCAR Database. The MCAR Database is used to track inventory, charge time, prepare the Assessment Certificate, prepare notices and letters and post payments.

Follow these procedures to request an outbound MCAR where the taxpayer resides or has assets in a country for which mutual collection assistance is available.

Before requesting an outbound MCAR, make sure a Letter 1058 or LT 11 has been issued to the taxpayer for each tax and period listed on the MCAR.

Complete Form 14424, Mutual Collection Assistance Request Treaty Referral, and provide the following information:

Attach the appropriate documentation to Form 14224 based on the type of assessment in the following table.

Prepare a secure email message to your group manager and include the following:

When the MCAR coordinator receives the Form 14424 the MCAR coordinator will:

Once the MCAR coordinator accepts the outbound MCAR case, the collection case should remain open until all domestic collection enforcement has been exhausted and the treaty partner has confirmed that all collection action in its jurisdiction is complete.

Close the case appropriately when all collection enforcement has been exhausted against available domestic income and assets. i.e., currently not collectible, continuous levy, etc,.

The MCAR coordinator should be informed of any changes to the status of the case such as funds collected, inability to pay, etc,.

There are situations where the referring revenue officer, or the MCAR coordinator, may initiate withdrawal of the outbound MCAR referral. Instead of working with the treaty partner, the taxpayer may choose to resolve their liability with the IRS. If the taxpayer resolves their case with the IRS, the outbound MCAR referral can be withdrawn by either the referring revenue officer or the MCAR coordinator.

The following case closures meet the requirements to withdraw the outbound MCAR referral:

Communications with foreign treaty partners concerning MCAR cases are to be transmitted through the U.S. Competent Authority. Contact the U.S. Competent Authority analyst assigned to the MCAR case. See IRM 11.3.25, Disclosure to Foreign Countries Pursuant to Tax Treaties.

Field Collection Area Offices may receive a Courtesy Investigation or Other Investigation (OI) according to the procedures in IRM 5.1.8., Courtesy Investigations .

Managers will assign the Courtesy Investigation according to the procedures in IRM 5.1.8, Courtesy Investigations, upon receipt. When the investigation is assigned, contact the MCAR coordinator and provide the investigating revenue officer's name and telephone number.

The MCAR coordinator will provide guidance to the revenue officer on what actions to take regarding the OI.

Do not close the OI without concurrence of the MCAR coordinator.

Secure all information necessary for filing a proof of claim and forward the information to the originator if the investigation reveals that the taxpayer has entered into a bankruptcy proceeding.

If the assigned Service employee in Insolvency determines that a taxpayer has assets in a foreign country, please refer to IRM 5.21.3, Collection Tools for International Cases.

If the assigned Service employee in Insolvency learns of a pending foreign proceeding in which assets of the taxpayer are held, immediately notify your local Chief Counsel office for assistance.

If the assigned Service employee in Insolvency learns that there is a pending Chapter 15 in the United States in which assets of the taxpayer are held, please refer to IRM 5.9.7.2, Chapter 15 - Ancillary and Other Cross-Border Cases.