This IRM 5.19.1, Liability Collection, Balance Due, provides directions and guidelines for working the balance due program. The procedures contained in this section provide guidance for employees to help taxpayers determine the best way to resolve their outstanding balance(s) due. This section also provides guidance on various situations that employees may encounter and how to resolve them.

Installment Agreements (IAs) are arrangements by which the IRS allows taxpayers to pay liabilities over time. Taxpayers should be encouraged to pay the liability in full to avoid the costs of an IA, which include a user fee, accrual of penalties and interest, and the possible filing of a Notice of Federal Tax Lien (NFTL). If full payment cannot be achieved by the Collection Statute Expiration Date (CSED), and taxpayers have some ability to pay, Partial Payment Installment Agreements (PPIAs) may be granted. During the course of IAs, penalties and interest continue to accrue. No levies may be served while an IA is pending, in effect, or for 30 days following rejection or termination and the appeal period if the rejection or termination is timely appealed.

The authorities for this IRM include:

Per Policy Statement 5-1: A tax system based on voluntary assessment would not be viable without enforcement programs to ensure compliance. The IRS is committed to educating and assisting taxpayers who make a good faith effort to comply. However, enforcement action should be taken promptly, in accordance with Internal Revenue Manual guidelines, against taxpayers who have not shown a good faith effort to comply. Promotion of long-term voluntary compliance is a basic goal of the IRS, and in reaching this goal, the IRS will be cognizant not only of taxpayers’ obligations under our system of taxation but also of their rights.

Per Policy Statement 5-2: We will actively assist taxpayers who try to comply with the law, and work to continually improve the quality of our systems and service to meet the needs of our customers. All taxpayers, whether delinquent or fully compliant, are entitled to prompt and professional service whenever they deal with IRS employees. The public as a whole is our customer, not just delinquent taxpayers. Our customers expect us to promote voluntary compliance by ensuring that all promptly pay their fair share.

IRC 6502 provides procedures for the ten year CSED.

The IRS Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements for all IRS employees working tax related matters.

The Director, Collection Policy, is responsible for all policy and procedures related to balance due programs. They are responsible for overseeing program coordination for Campus procedures related to balance due programs. They work closely with Campus Collection directorships and operations in each campus as primary contact and support for balance due.

The Operations Manager is responsible for managing remote collection activities including telephone, correspondence and face-to-face transactions, following the procedures in this IRM. They oversee department, team and employee responses to taxpayer inquiries and responses concerning balances due. They oversee department, team and employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

The Department manager is responsible for overseeing team and employee responses to taxpayer inquires and responses concerning balances due, following the procedures in this IRM. They oversee team and employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

The Team manager is responsible for overseeing employee responses to taxpayer inquiries and responses concerning taxpayer delinquent return accounts and investigations, following the procedures in this IRM. They oversee employee actions to resolve balance due accounts owed by taxpayers who did not full pay their tax due.

Employees who process balance due responses are responsible for responding to taxpayer inquiries and responses concerning balance due accounts, following the procedures in this IRM.

Program Reviews: Operational and program reviews are conducted to ensure that case actions are in accordance with the procedures in this IRM.

Program Reports: The following daily and weekly reports are generated by management, and can assist with evaluating the performance of the balance due program:

Monthly Installment Agreement Trend Report. Sourced from the CAR (CAR), CRA generates and reviews a monthly IA trend report that captures data on the various types of IAs and compares year over year data on IA inventory levels, the number of IAs initiated, default rates, full pay rates, and dollars collected. Any anomalies are identified and researched for potential causes. Negative trends are identified and causes addressed.

Program Effectiveness: The program results are housed on the Collection Program and Campus Reports SharePoint site in the Monthly Monitoring Report (MMR).The MMR captures NQRS results to show monthly and cumulative stats. Evaluative (EQRS) and national (NQRS) quality reviews and consistency reviews are routinely conducted, along with Headquarters reviews to ensure case actions are timely and in accordance with the procedures in this IRM.

Incoming telephone calls are distributed to telephone representatives using the Unified Contact Center Environment (UCCE) system.

Taxpayer responses and other inventory are loaded to AMS and then distributed to correspondence tax examiners. AMS tracks employee actions and is monitored by Operation, Department, and Front-Line managers along with Collection HQ employees.

Employees should ensure that taxpayer conditions meet requirements for Streamlined or In-Business Express installment agreement processing criteria and that there are no unfiled returns. Certain case dispositions (including non-streamlined IAs, certain adjustments and currently not collectable (CNC) closures) require managerial approval.

The Integrated Data Retrieval System (IDRS) programming ensures that all open balance due modules on IDRS in a notice or collection status are included when an IA is input.

Independent Administrative Review is required of all rejected IA proposals, and all rejection, default and termination decisions are subject to appeal procedures.

Managers are required to follow program management procedures and controls addressed in:

CP 508C and lists of Passport Certifications will be retained for 15 years from date of issuance.

Refer to Exhibit 5.19.1-1, Acronyms and Explanations for IRM 5.19.1, for a list of acronyms.

While many topics are touched upon in this chapter, comprehensive guidance about all of them cannot always be included here. As you use this chapter, remain alert for references to other resources, such as related IRMs and websites. Access that guidance as needed to ensure a thorough understanding of topics.

Additional resources can be found as applicable in:

Employees may also find the following information helpful:

To maintain the accuracy of IRM 5.19.1, Balance Due, send corrections and change requests to Headquarters, via the SERP Feedback Application (Database). The SERP Staff forwards SERP Feedbacks to the appropriate Content Owner(s) in Headquarters for consideration of the requested IRM procedural changes. The Feedback system should not be used to ask questions that should be answered by your manager, lead or P&A staff or to rebut an employee or product review.

DO NOT use the SERP Feedback Form to request changes to the following:

Always review prior SERP Feedbacks and responses to ensure your issue has not already been addressed. See (f) below.

ACS Employees are required to follow Exhibit 5.19.1-3, ACS Call Flow.

For purposes of identification and to prevent unauthorized disclosures of tax information, follow the chart below:

When responding to balance due inquiries, document the AMS narrative with the identity of the person initiating the inquiry. See IRM 5.19.1.2.4, Documenting Account Actions.

The IAT Disclosure Tool assists the user in verifying the identity of a caller and determining if the caller is authorized to receive confidential tax information or represent the taxpayer.

IRC 6304 precludes, among other things, the IRS from communicating with a represented taxpayer in connection with the collection of any unpaid tax unless the taxpayer has given prior consent to that communication. In accordance with the purpose of IRC 6304, a IRS employee may not work directly with a represented taxpayer to resolve an issue on the taxpayer’s account unless all three (3) conditions shown in the following table are met:

See IRM 5.19.1.2.3.2, Additional Taxpayer Authentication, when additional taxpayer authentication is necessary.

If you determine that the person with whom you are speaking is being coached with the answers to the disclosure probes, you must verify if the caller is the taxpayer or someone else calling on the taxpayer’s behalf. If the caller is not the taxpayer, ask to speak to the taxpayer.

Whenever you work a case, you are required to document actions taken on taxpayer's accounts.

All documentation must be done via AMS, using available checklists, or by adding an appropriate issue and narrative. All documentation should be, to the extent possible, completed while the taxpayer is on the phone.

Complete and accurate case documentation promotes quality and consistency in working balance due cases. History entries should contain enough information so that any person subsequently reading the history can easily determine what decisions were made, why those decisions were made, what actions were taken and what further actions are required to resolve the case.

Do not use the term "Illegal Tax Protester" (ITP) or similar designations on IDRS, ACS History Codes, or AMS comments. The IRS Restructuring and Reform Act of 1998 (RRA 98), IRC 3707, prohibits the use of any "tax protester" or similar designation to describe the taxpayer. If you identify any such reference, immediately inform your manager. You can document that the taxpayer has submitted correspondence or used arguments that appear frivolous or subject to penalty. Terms such as "frivolous argument" or "tax avoidance argument" are examples of acceptable terms to use.

The Treasury Inspector General for Tax Administration (TIGTA) conducts annual audits to determine whether the IRS is compliant with this provision of RRA 98. See IRM 25.4, Employee Protection, for further information.

A quality product or response is accurate, timely, and addresses all issues based on the information the taxpayer provided.

Responses must:

Final response to taxpayer(s) must be initiated by the 30th day from the earliest IRS received date, unless the taxpayer has received an interim contact or interim contact letter has been initiated from us by the 30th day.

Only correspondence received from the taxpayer requesting research, information, or action to their account must be answered.

Providing the taxpayer with their current balance due in outgoing correspondence is not required when the taxpayer has made an inquiry such as a request to make payments or where resolution of their balance is being made.

When a payment agreement requires confirmation by letter, provide the address for the CSCO campus with jurisdiction for both the return address and payment address. Do not provide a lockbox address in any "C" letters. Lockbox will only process payments with the CP 521, Installment Agreement Reminder Notice, or CP 523, Installment Agreement Default Notice.

Occasionally a IRS processing error results in an incorrect or unnecessary letter (Letter 2645C, Interim Letter). In such instances, acknowledge the error and include an appropriate apology as part of explanatory correspondence to taxpayer (such as Letter 0544C, Apology for IRS Error). Include a notation on AMS that you apologized for a IRS error on a particular date.

The following information should be included in outgoing balance due correspondence addressing IA issues:

Regular IA requests per IRM 5.19.1.6.4.12, Input of IA, should include the following:

DDIA requests, IRM 5.19.1.6.4.13.1, DDIA - Form 433-D, Installment Agreement, and Form 9465, Installment Agreement Request, should include the following:

Payroll Deduction Installment Agreement (PDIA) requests IRM 5.19.1.6.4.14, Form 2159, Payroll Deduction Agreement, should include the following:

Up to 180 day Short Term Payment Plan, IRM 5.19.1.6.3, Short Term Payment Plan Within 180 Days, should include the following:

All other issues should be handled accordingly and address the taxpayer's requests and concerns.

If multiple issues are involved, select the letter that best addresses the main issue. Use open paragraphs to address any additional IRS or taxpayer issues.

When letters are generated through GII programs, acknowledgement of payment made with a request is not required. Appropriate Return Address codes have been approved and do not follow paragraph (6) above or IRM 5.19.1.2.7, Ways to Make Payments.

For a complete list of Correspondex letters go to SERP under Forms/Letters/Pubs.

This subsection provides the authority levels for case processing by the type of disposition for each functional area.

For specific guidance on what is required prior to disposition of case, employees must follow the procedures in the appropriate IRM section or subsection.

For balances over the business unit dollar criteria, see IRM 5.19.1.4.1, Account Actions on Referrals/Redirects.

If pre-assessed/unassessed taxes are included, the pre-assessed/unassessed liability plus unpaid balance of assessments (CC SUMRY) must be within the applicable dollar criteria shown.

For In-Business Trust Fund accounts, employees in CSCO, FA, ACS and ACSS are only authorized to establish IBTF Express Agreements. See IRM 5.19.1.6.4.2, IA Requirements IBTF Express Agreement, and IRM 5.19.1.6.4.2.1, Lump Sum Payment for IBTF Express ONLY.

All employees are required to secure managerial approval when appropriate, as directed by specific IRM procedures.

There are several electronic payment options available for individuals and businesses inquiring about paying a balance, whether it is payment in full or a monthly IA. When speaking with taxpayers, encourage them to use one of the electronic payment options. There are numerous advantages to using one of the electronic payment methods, such as:

Taxpayers can make payment(s) by check or money order. See IRM 5.19.1.2.7.1, Taxpayer Responsibilities - When Submitting Payments by Check or Money Order, for information to provide to those taxpayers who will not be using an electronic payment option to submit payment(s).

Taxpayers inquiring about paying an IMF balance should be encouraged to use IRS Direct Pay. Emphasize that it is a free, secure, quick, and easy way to make payments towards their IMF balance. Taxpayers may access IRS Direct Pay by typing "Direct Pay" into the IRS.gov search field and clicking the resulting links.

Taxpayers may use credit or debit cards to make payments, by phone or internet. See IRM 21.2.1.48.6, Credit or Debit Card Payments (Pay by Phone or Internet).

The IRS offers an official smartphone app IRS2Go that provides easy access to mobile-friendly payment options like Direct Pay, offering taxpayers a free, secure way to pay directly from your checking or savings account. Taxpayers can also use the app to make a debit or credit card payment through an approved payment processor for a fee.

VanillaDirect is a cash payment option available to taxpayers through https://irs.gov/Payments and participating retail stores. It is a secure walk up cash payment method that converts cash payments to electronic transactions. It utilizes a barcode and retail locations to complete the transactions. See IRM 21.2.1.60, Paying with Cash at a Retail Partner.

EFTPS is a system designed to utilize Electronic Funds Transfer (EFT) to pay all federal taxes. See IRM 21.5.7.4.7.14, Electronic Federal Tax Payment System (EFTPS). EFTPS has the ability to schedule payments up to twelve months in advance for individual taxpayers and up to four months in advance for business taxpayers.

Some taxpayers may opt to submit their monthly IA payments through a payroll deduction or a direct debit agreement. Depending on the type of IA and amount owed, some taxpayers may be required to submit their payments through either a payroll deduction or a direct debit.

Online Account (OLA), Taxpayers can make a payment, from their checking or savings account, through their Individual Online Account (IOLA), an online system available to IMF taxpayers through IRS.gov. Payments can be made toward the following:

This subsection provides information on mandated IAT tools.

IAT provides tools that simplify research, reduce keystrokes, eliminates repetitive typing, and increases the accuracy of regular work processes.

IAT uses IDRS to gather and submit data. If IDRS is down, or a Command Code (CC) is unavailable, IAT will not function, or may function improperly.

Visit the IAT Website to:

If an IAT tool is unavailable, not functioning properly, there is a problem with the ITM, or the tool is otherwise determined not to be appropriate due to a specific situation:

FA employees should refer to IRM 21.3.4-12, Field Assistance Mandated IAT Tools, for mandated IAT Tools.

The table below provides a list of mandated tools for ACS Call Site, ACSS and CSCO employees. When an action must be taken and a Mandatory IAT tool is available, Campus Compliance employees with access to the tool are required to use it to complete the action (unless paragraph (3) above applies).

Taxpayer requests to speak to a manager are a priority customer service issue. If a caller requests to speak to a manager, there are two options:

If the manager can take the call immediately,

If your manager or manager designee is not available,

The employee should appropriately document the taxpayer's request to speak with the manager. Whether the manager speaks with the taxpayer immediately or within 24 hours, they should document the results of the conversation and reassign as appropriate for any necessary follow-up actions.

This subsection provides procedures for all employees on referrals and redirects by the following categories:

ST 22 Cases: When working ST 22 cases, notify your ACS Liaison of actions you take if you do not have access to ACS; do not direct the taxpayer to contact the ACS call site.

NMF: For calls on an NMF account, advise the taxpayer they must call 833-972-8965.

Spanish-speaking Taxpayers: When the taxpayer requests a Spanish-speaking employee, transfer the call as follows:

For Multilingual calls, refer to IRM 5.19.1.3.4.1, Multilingual Services.

For Tax Law Inquiries, refer to IRM 5.19.1.3.4.2, Tax Law Inquiry, to determine the correct transfer number for when transferring the taxpayer's call.

For Non Tax Law Inquiries, refer to IRM 5.19.1.3.4.3, Non Tax Law Inquiry.

ACS (ST 22) Accounts: When an IA is requested, input TC 971 AC 043 if the case meets pending IA criteria, IRM 5.19.1.6.4.7, Pending IA Criteria. Route the correspondence to the appropriate ACSS Site, based on BOD code and State mapping (W&I State Mapping or SB/SE State Mapping). Issue Letter 0086C, Referring Taxpayer Inquiry/Forms to Another Office, if the ACSS Site is outside of your campus. If the ACSS Site is in your campus, send Letter 2645C, Interim Letter, if the case is over 25 days old and no interim letter was sent. Update comments on AMS.

Form 4442, Inquiry Referrals: If you receive a taxpayer inquiry that cannot be resolved during initial contact (or are directed to initiate a referral), follow instructions in IRM 21.3.5.4.2, How to Prepare a Referral, to prepare Form 4442, Inquiry Referral, IRM 5.19.5.4.6, ACS Procedures e-4442/4442.

CP 04 (Combat Zone) responses: Route to Kansas City CSCO and issue Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office. Provide the CP 04 toll-free number in the letter. See IRM 5.19.10.6.5.5, Responses to CP 04.

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Discovered Remittance: See IRM 3.8.46.1, Discovered Remittances.

Freedom of Information Act (FOIA) Request: Forward the correspondence via eFax to the Government Liaison, Disclosure and Safeguards (GLDS) Support Services (GSS) at 877-891-6035; input CC STAUP 2209. If there are other issues in the correspondence, photocopy the correspondence before routing to the GSS and continue case processing.

Frivolous correspondence: See IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments.

Frivolous Return: Input TC 592 cc 082. See IRM 5.19.2.6.4.1, IMF Special Handling.

IA requests above Campus authority: Any request above your authority must be routed to the appropriate function. See IRM 5.19.1.6.4, Installment Agreements (IAs), and IRM 5.19.1.4.1, Account Actions on Referral/Redirects.

IRS employee sends correspondence about their tax account: Do not work the case. Refer the inquiry to the field per IRM 5.19.18.3, IRS Employee FERDI Cases.

KITA or KIA case: See IRM 5.19.1.5, Balance Due Special Considerations.

Payment tracer request: If there is no balance due issue, forward the correspondence to AM. If the taxpayer addresses a balance due account and it meets collection criteria, attempt to locate the payment; for additional information, see IRM 21.5.7, Payment Tracers.

Pending OIC: If there is a TC 480 or TC 780 on the account (ST 71) (-Y Freeze), a pending OIC is present. See IRM 5.19.17.3, Offer in Compromise (OIC) Procedures.

Revenue Officer Request: Forward to Centralized Case Processing (CCP) in PSC. If the taxpayer disputes the liability and there are no collection balance due issues, see IRM 21.3.3.4.8.2, Campus Collection Function Correspondence/Inquiry/Notice.

Identify the issue the taxpayer is disputing; send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, or interim letter as appropriate. Route the correspondence as follows:

When researching the account, if any modules are in ACS ST 22, do not work the case unless you have access to the ACS system. See IRM 5.19.1.3.2.1.1, ACS Transfer Information. If no access to ACS address all non-ACS issues and take the following actions:

Continue processing by ensuring you input a history on AMS. If you do not have access to AMS, input history on CC ENMOD to reflect the paper referral of a telephone call or the correspondence to ACS; this alerts ACS employees who may be researching the account not to take some type of enforcement action there is a taxpayer contact being referred to them for consideration.

Any function receiving a ST 24 case is required to process the case following normal procedures, up to the functions’ authority level. See IRM 5.19.1.2.6, Case Processing Authority Levels. Do not bring the account into ACS if you can close the case on the same day - the case can be worked if in ST 24. If the taxpayer must provide additional information or you are unable to close the case on the same day, take the following actions:

Forward documents to RO Group Manager based on Revenue Officer by TSIGN/ZIP/State look-up located on the SERP, Who/Where tab to the RO by TSIGN/ZIP/STATE site.

When researching the account, if there are ST 26 modules, further research is required to determine where the case is assigned; follow the chart below to determine where the case is assigned and the appropriate action:

Once your research/interview is complete, and it is determined the tax liability is correct with a remaining outstanding balance, continue case processing; for additional information. IRM 5.19.1.4.3, Determine Correct Tax Liability.

For correspondence, work the case per the request received in the correspondence. Follow disclosure guidelines and other procedures outlined throughout this subsection. IRM 5.19.1.2.3, Disclosure Overview: Verifying Identity of Contact Party.

If additional information is required to make a final case disposition, attempt to contact the taxpayer by phone or correspondence to request additional information; if making a phone attempt and contact is not made with the taxpayer, you must follow up with a letter requesting the additional information.

The following subsections provide account actions on referral/redirects by business unit:

This subsection provides procedures for changing taxpayer entity information, such as address, name and obtaining the taxpayer's best contact number(s), if possible.

ACS and ACSS employees (includes Field Assistance employees working ACS cases): When working a ST 22, ACS case, and telephone contact indicates an incorrect best contact number, use the table below to update the taxpayer account:

CSCO, Field Assistance employees (including ACS and ACSS employees working non-ACS cases): You must attempt to secure the best contact number when speaking to taxpayers (or their authorized representatives) on all accounts if there is a balance due of any kind. If working correspondence and a phone number was provided, then update account if there is a balance due.

The taxpayer may indicate verbally or in writing the tax liability is questionable, such as:

Do not pursue collection if you are not able to determine the correct tax liability. However, you must address any delinquent returns as well as secure updated addresses and telephone number to update the account with current information. See IRM 5.19.1.4.2, Taxpayer Information.

Allow the taxpayer an opportunity to dispute a liability they do not agree with by following the appropriate process described in the following paragraph.

Follow the instructions below if you determine the tax liability is questionable and a referral to another office is appropriate. Input CC STAUP to suspend further notices for 60 days prior to referring the balance due inquiry to another office/area; see paragraph (6) below).

If there is an open control base, contact the employee for case processing instructions. See IRM 21.5.2.3(5), Adjustment Guidelines - Research.

Use CC STAUP to interrupt the normal notice routine by delaying, accelerating or skipping notices. Employees can request a notice be stopped by taking the following actions: