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Automated Levy Programs |
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| Master File Tax Code (MFT) |
30, 31, 55 Individual Master File only |
| Master File and IDRS Collection Status Codes |
22, 23, 24,
26 53 with closing codes 03, 09, 12, 39, and hardship codes 2432 |
| SITLP Selection Indicator | TC 971 AC 600 |
| Systemically Applied SITLP Payment | TC 670 DPC 20 |
| Manually Applied SITLP Payment | TC 670 DPC 21 |
5.11.7.1.5
(07-26-2002)
SITLP Correspondence Notices
- Pursuant to IRC 6330, SITLP will systemically issue a notice to the taxpayer, but unlike other notice requirements under IRC 6330, SITLP notices are "post-levy" notices. IRC 6330(f) requires that any taxpayer levied under SITLP shall be given an opportunity for a Collection Due Process (CDP) hearing within a reasonable amount of time after the levy.
- As a result of RRA 98 and IRC 6330, a post-levy notice, Computer Paragraph (CP) 92, Notice of Levy on Your State Tax Refund Notice of Your Right to a Hearing, was developed.
- The combination of a TC 971 AC 600 and a TC 670 DPC 20/21 on a tax module generates the CP 92.
-
The CP 92 is a Master File generated notice, mailed
Certified. A TC 971 AC 069 will systemically post on
each module when a CP 92 is generated.
Exception:
If a taxpayer previously received a CDP notice for any tax period(s) included on the SITLP levy, then no CDP notice will be issued for those tax period(s), unless there was an additional assessment, after issuance of the CDP notice.
Example:
A TC 971 AC 069 posted to the module on 04/01/2001, and a TC 300 assessment for $300.00 posts to the module on 05/01/2002. A CP 92 would be mailed and a TC 971 AC 069 would post to the module, if another SITLP levy occurred.
- On joint liabilities, the TC 971 AC 069 will only post to the primary Social Security Number. Programming changes may occur at a later date to allow for a separate TC 971 AC 069 for the primary and secondary Social Security Number.
- Exhibit 5.11.7-3 displays a copy of CP 92. CP 92 displays the balance due information and advises the taxpayer of the amount levied from his/her state tax refund. In addition, the notice explains the procedure for requesting a CDP hearing or Equivalent hearing, if applicable. The CP 92 also provides an ACS toll-free telephone number to contact for assistance. For W&I taxpayers the telephone number is 1-800-829-7650 and for SBSE taxpayers the telephone number is 1-800-829-3903. These telephone numbers are available for taxpayers to resolve their tax accounts or exercise their appeal rights.
5.11.7.1.6
(07-26-2002)
Appeal Procedures
- The CP 92 includes a Form 12153, Request for a Collection Due Process Hearing, Publication 1660, Collection Appeal Rightsand Publication 594, IRS Collection Process. This information will provide guidance on the appeal process and how to request a CDP hearing. If a taxpayer wants to request a hearing, he/she will send the request to the address shown on the notice.
- The taxpayer must request a CDP hearing in writing. Form 12153 or a written statement may be used for this purpose. The request must be received within 30 days from the date of the notice and the date of the TC 971 AC 069. Any requests received after the 30 days will be considered late and will be worked as an Equivalent hearing request.
- The Service representative handling the inquiry may attempt to resolve the tax account prior to forwarding the CDP or Equivalent hearing request to Appeals. When this occurs, request input of a TC 971 AC 061, which will stop future levy action, pending the outcome of the appeal. If the account is resolved, the taxpayer may choose to withdraw the request. The withdrawal must be in writing, Form 12256, Withdrawal of Request for Collection Due Process Hearing, can be used for this purpose. Once the withdrawal is approved, a TC 972 AC 061 will be input to reverse the TC 971 AC 061.
- If SITLP levy proceeds were previously applied to the tax balance, the representative may determine that all or part of the levy proceeds will be refunded to the taxpayer.
- If the representative is unable to resolve the account, the CDP or Equivalent hearing request will be forwarded to Appeals for resolution. Service personnel are to process any appeals requests in accordance with procedures in IRM 5.1.9, General Collection Procedure, Collection Appeal Rights or IRM 5.19.8, Collection Appeal Rights.
- When a taxpayer is barred from requesting a CDP or Equivalent hearing, he/she has the option to appeal the levy action under the Collection Appeals Program (CAP).
5.11.7.1.7
(07-26-2002)
Handling Inquiries
- Taxpayer inquiries regarding SITLP levies may be as a result of receiving either a "State" correspondence notice and/or the CP 92.
- Participating states are required to notify taxpayers of the levy against their state tax refunds. Often times, the state correspondence is received prior to the IRS notice.
- State correspondence refers all inquiries to the ACS toll-free telephone number 1-800-829-7650. State coordinators are advised to refrain from addressing SITLP inquiries.
-
In order to determine whether a taxpayer account has
been subject to a SITLP levy:
- Determine whether the taxpayer received notification from the state. This should advise the taxpayer of the SITLP levy and the amount of the state tax refund levied.
- Review any transcripts for a TC 971 AC 600 and a TC 670 DPC 20 or 21.
- If a TC 971 AC 600 is present without a corresponding TC 670 DPC 20 or 21, it is likely that the levy proceeds are forthcoming, or were previously applied to other modules subject to levy action.
- If both the TC 971 AC 600 and a TC 670 DPC 20/21 are present, then SITLP levy proceeds were applied to the tax module(s)
- The taxpayer may request a CDP/Equivalent hearing, at which time the procedures outlined in IRM 5.11.7.1.6,Appeal Procedures,will be followed.
- If the taxpayer is interested in resolving the remaining balance, discuss any options available to the taxpayer. This may include an installment agreement, offer in compromise, etc.
- If the taxpayer claims that the amount should not have been levied, it is possible that one or more of the levy exclusions is present on the account. See Exhibit 5.11.7-1,SITLP Exclusion Criteria. If the exclusion criteria are present on any module(s) affected by SITLP, procedures for initiating a manual refund may be necessary. Refer to IRM 5.19.9.2.
- In rare instances, taxpayers may file "wrongful levy" claims on SITLP levies against joint state tax refunds, when only one taxpayer is liable for the tax delinquency. These claims will be handled administratively, but taxpayers have the option to file a civil wrongful levy suit if the account cannot be resolved administratively.
-
SITLP correspondence will either be forwarded to one of
the four ACS Support sites, or to Service Center
Collection Branch (SCCB) for resolution. ACS Support
will work all CDP requests, but non-CDP inquiries may
initially be worked in SCCB and forwarded to ACS
Support, as appropriate.
SERVICE CENTER CAMPUS-ACS SUPPORT Fresno Campus W&I Kansas City Campus W&I Cincinnati Campus SB/SE Philadelphia Campus SB/SE
5.11.7.1.8
(07-26-2002)
State Agreement
- As a result of RRA 98, and an opinion from the Office of Chief Counsel, all participating states will follow the procedure outlined in one generic SITLP agreement.
-
The agreement includes the following sections:
- Purpose
- Authority
- Overview of the SITLP program
- Rights and responsibilities
- Coordination
- Concurrence
- SITLP is coordinated with the Office of Governmental Liaison & Disclosure (GL). The GL for that particular state presents the agreement to the state-taxing agency. Any questions regarding the terms of the agreement are generally addressed by the GL and the HQ-SITLP program analyst. The GL is also responsible for obtaining approval signatures.
- On occasion, the state(s) request approval to deviate from one or more aspects outlined in the agreement. When this occurs, the Office of Chief Counsel is consulted and/or the deviation is a result of a Compliance policy decision.
-
Currently, two template agreements exist.
- The standard SITLP agreement, and
- An agreement that permits the state to levy for an amount in excess of $25.00. The $25.00 could be used by the state to defray administrative costs, if State law and/or regulations permit.
-
SITLP agreements require approval signatures from the
following executives:
- State Official(s)
- GLD Area Manager
- Campus Directors (Submission Processing; Accounts Management; Compliance Services)
- W&I Field Assistance Director
- SBSE Area Director
- A copy of the signed SITLP agreement will be kept by a representative from the state agency, SITLP coordinator, GL and the Headquarters SITLP program analyst.
-
The Headquarters SITLP program is currently managed and
directed by SBSE, Compliance, Compliance Policy, Payment
Compliance, Office of Enforcement, at the following
address:
Internal Revenue Service
S:C:CP:P:E
NCFB C9248
5000 Ellin Road
Lanham MD 20706
5.11.7.1.9
(07-26-2002)
Exclusion Criteria
- Due to the implementation of RRA 98, it is imperative that every precaution is taken to avoid erroneous or wrongful levies. To accomplish this, SITLP has an extensive review of exclusion criteria that are used to eliminate tax period(s) and/or entities from SITLP levy prior to creating the SITLP cartridge file.
- It is essential to review the exclusion criteria in Exhibit 5.11.7-1, SITLP Exclusion Criteria, whenever handling a SITLP inquiry. If any transaction code, TC 971 with a corresponding action code or status code listed in the exhibit is present on any tax period, ensure that proper action is taken to avoid a wrongful or erroneous levy situation. Refer to IRM 5.11.7.1.7(7) for specific procedures.
5.11.7.2
(07-26-2002)
Federal Payment Levy Program
- The Federal Payment Levy Program (FPLP) is an automated levy program the IRS has implemented with the Department of the Treasury, Financial Management Service (FMS).
- The FPLP is a means by which the IRS will systemically levy federal disbursements using a paperless process.
5.11.7.2.1
(07-26-2002)
Background and Authority
- Internal Revenue Code (IRC) Section 6331(h) as prescribed by the Taxpayer Relief Act of 1997 (Public Law 10534) Section 1024, authorizes the Internal Revenue Service to issue continuous levies on certain federal payments.
- The law allows up to fifteen percent of specified payments to be levied. Specified payments include any federal payment other than a payment for which eligibility is based on the income and/or assets of a payee.
- The FPLP was developed to implement this law.
- FMS disburses some of the federal payments that are available for levy under this new law.
- Although this law allows the levy on some payments that are exempt pursuant to IRC Section 6334(a), the Service willnotpursue those payment sources at this time.
5.11.7.2.1.1
(07-26-2002)
Interagency Agreement
-
The interagency
agreement between the IRS and FMS provides for
certain federal payments disbursed by FMS to be
systemically levied. FMS
is the levy source for all levies issued
through the FPLP not
the federal payment agencies. Currently, the
following payments are levied:
- Federal retirement income disbursed for the Office of Personnel Management
- Federal (nonmilitary) contractor/vendor payments (Department of the Defense contractor payments will be included in the future)
- Federal employee travel voucher advances and reimbursements
- Federal employee salaries administered by the U.S. Department of Agriculture, National Finance Center; and the U.S. Department of the Interior, National Business Center.
- Social security benefit payments under Title II of the Social Security Act, aka Federal Old Age, Survivors, and Disability Insurance (OASDI) Benefits (except dependent child benefits; claims for lump sum death payments; Prouty recipient benefits for those aged 72 on or before 1971). Supplemental Security Income (SSI) will not be levied.
- The amount levied will be 15 percent of the amount that FMS will disburse for the federal payment agency. Federal employee salaries will be levied for 15 percent of the GROSS salary after current taxes, health insurance premiums, retirement contributions, and, if applicable, court ordered child support payments are deducted.
- If a taxpayer is receiving two or more types of federal payments that are available for levy through the FPLP, then 15 percent of each of those payments may be levied.
- Only the primary taxpayer's federal payment will be matched and levied at this time.
5.11.7.2.1.2
(07-26-2002)
Delegation Authority
- The delegation authority to issue an IRC 6331(h) levy and levy release through the FPLP remains the same as outlined in Delegation Order 191.
- Certain Taxpayer Advocate Service employees are also delegated to release systemically generated levies such as the FPLP, but only on modules not assigned in Status 26.
5.11.7.2.1.3
(07-26-2002)
Third Party Notification
- The FPLP is not subject to Third Party notification provisions under IRC 7602 (c) because contact is made between electronic database(s).
- Personal contact between IRS employees and FMS (or other federal agencies) about taxpayers should not be made with regard to FPLP levies, unless Third Party contact provisions are satisfied.
5.11.7.2.2
(07-26-2002)
Criteria
-
The following types of tax and collection status can be
selected for levy through the FPLP:
Master File Tax Code (MFT) 0106, 0913, 15, 16, 30, 31, 33, 34, 36, 37, 44, 50, 51, 52, 55, 60, 63, 64, 67, 77, 78 Status of Case Master File status 23, 24, 22, 26
Transaction Code 530, with closing codes 03, 06, 09, 10, 12, 13, 39 - A module will keep its current Master File status when it is selected for the FPLP.
-
If the module changes to another status that is within
the FPLP criteria, then the module will remain in the
FPLP.
Example:
If a Status 22 module, which is in the FPLP, changes to Status 24, then the module will remain in the FPLP.
5.11.7.2.2.1
(07-26-2002)
Exclusions
- Entities or balance due tax modules with certain condition and freeze codes will be excluded from selection. Exhibit 5.11.74, FPLP Exclusion Criteria, displays the list and description of transaction and freeze codes that are excluded.
- Excluded from the FPLP are modules/entities that should not, statutorily or administratively, be in levy status, such as pending or approved installment agreements, Offers in Compromise, approved Taxpayer Assistance Orders, open bankruptcies and litigation, pending claims, and imminent CSEDs.
-
If a module is in the
FPLP, and subsequently moves into one of these
exclusions, then the module will
systemically
reverse out of the FPLP.
Example:
If a Status 26 module, which is in the FPLP, changes to Status 72 with TC 520, the module will systemically reverse out of the FPLP.
Example:
If a Status 26 module, which is in the FPLP, is closed as a hardship with a TC 530 CC 32, the module will systemically reverse out of the FPLP.
Example:
If a Status 26 module, which is in the FPLP, receives a pending IA request, with TC 971 AC 043, the module will systemically reverse out of the FPLP.
-
Social security benefit
payments of IMF taxpayers will not be subject to the
FPLP levy if they meet a certain income exclusion
criterion (see LEM 5) and there is no TDI for any
subsequent year. See IRM 5.11.7.2.5.2,
SSA No Levy Indicator.
- Only social security benefit payments matched through the FPLP will be subject to this exclusion.
5.11.7.2.3
(07-26-2002)
FPLP Process
-
All delinquent cases that meet the selection criteria
will be transmitted to FMS to be matched with federal
disbursements.
Note:
Although a taxpayer may never receive a federal payment, he/she may still meet the selection criteria and will be transmitted to FMS to search for a possible future match.
- If FMS identifies a match, then the FPLP will systemically generate a CP 90 or 297, Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing, if one has not been previously sent. Exhibit 5.11.75 displays a copy of CP 90/297, and IRM 5.11.7.2.4 provides a description of the notice. If the taxpayer does not appeal or resolve the case within the appropriate timeframe, IRS will transmit a levy to FMS, attaching 15 percent of the federal payments due to the taxpayer.
- If the match is a social security benefit payment, and after a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearinghas been issued, then another notice, CP 91 or 298,Final Notice Before Levy on Social Security Benefits, will be issued prior to the levy of the payment. Exhibit 5.11.76 displays a copy of CP 91/298, and IRM 5.11.7.2.4 provides a description of the notice.
- For federal payments other than social security, a levy will be transmitted to FMS 10 weeks after a Final Notice, Notice of Intent to Levy and Your Right to a Hearing was issued; for social security payments, the levy will be transmitted to FMS 8 weeks after the CP 91 or 298 was issued.
-
Once FMS processes the IRS database against its payment
disbursement files, then FMS will transmit the proceeds
to IRS and send the remaining disbursement to the
taxpayer along with a notice indicating the federal
payment has been levied. Exhibit
5.11.77, Department
of the Treasury, Financial Management Service Notice to
Taxpayers, displays the following information
on the notice:
- The FMS notice displays the type of federal debt and the agency due the federal debt; the type, date and amount of the federal payment disbursement before levy and the paying federal agency; and then the amount levied. The notice also displays an Account Number, that consists of the TIN type, TIN, MFT and period, for which the levied payment posted.
- The FMS notice displays an Automated Collection System (ACS) phone number for taxpayers (18008297650) to contact the IRS to resolve their account. If a taxpayer calls the ACS phone number and the taxpayer is assigned to a local field office, the taxpayer will be referred to that appropriate office.
- FMS mails the notice to the taxpayer's address provided by the federal payment agency source which is not necessarily the address the IRS has on file for the taxpayer.
-
The FMS notice can
only accommodate one IRS address for taxpayers
to write:
Post Office Box 57
Bensalem PA 19020
Letters received at this address should be handled according to IRM 5.19.9.4,Liability Collection, Automated Levy Programs, FPLP Procedures, or forwarded to the appropriate office for resolution.
5.11.7.2.4
(07-26-2002)
Notice and Appeal
-
Prior to electronically levying a federal disbursement,
the FPLP will systemically issue a
Final Notice, Notice of Intent to Levy and Notice of
Your Right to a Hearing(CP 90IMF/CP 297BMF)
with collection due process appeal rights,
if one has not already been
sent.
- The notice CP 90/297 will be generated by the Master File & mailed certified with a return receipt (PS 3811). Transaction Code (TC) 971 AC 069 will systemically post on each module where the CP 90/297 was generated.
- The return receipt card (PS 3811) is addressed for return to the service center campus that generates the notice. Upon receipt, a TC 971 AC 066, 067, 068 will be input.
- CP 90/297 will display the balance due amounts and the ACS contact phone number (18008297650) for taxpayers to resolve the case or exercise their appeal rights.
-
The notice will
inform taxpayers of their right to appeal.
Taxpayers may their exercise appeal rights
through the:
Collection Appeals Program (CAP)
Collection Due Process (CDP)
Equivalent Hearing (Appeals request madeafter the 30 day CDP period)
Note:
If a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing (CP 90/297, Letter 1058, ACS LT 11) was issued prior to the last 180 days, a new warning of enforcement action does not have to be issued since this is a computer matching levy program. See IRM 5.11.1.2.2.4.
-
If the match is a social security benefit payment, a CP
91IMF/CP298BMF,Final Notice
Before Levy on Social Security Benefitswill
also be issued.
- CP 91/298 specifically indicates 15 percent of the taxpayer's social security benefit payment may be levied and provides an additional 30 days to resolve the tax liability.
- CP 91/298 will indicate the taxpayer's Claimant's Account Number and the Beneficiary's Own Account Number. These numbers are provided by FMS and SSA during the FPLP matching process to identify the taxpayer's social security benefit information.
- The notice will also display the balance due amounts.
- For a jointly filed income tax return, the primary taxpayer will be the only spouse receiving the CP 91. This is because the FPLP currently identifies and levies the primary taxpayer's benefit payment only.
- CP 91/298 is generated by the Master File; mailed regular mail to the taxpayer's last known address; and a TC 971 AC 169 will systemically post on each affected module. These notices will also have the ACS phone number (18008297650) listed.
-
The notice will
inform taxpayers of their right to appeal.
Taxpayers may exercise their appeal rights
through the following:
Collection Appeals Program (CAP)
Equivalent Hearing Request if no prior CDP or Equivalent hearing on the FPLP periods. - CP 91/298 is systemically generated for the FPLP only. It should not be issued manually and is not required prior to issuing duly authorized paper levies on social security benefit payments.
- Service personnel are to process any appeals requests according to procedures in IRM 5.1.9, General Collection Procedure, Collection Appeal Rights or IRM 5.19.8, Collection Appeal Rights.
- During any time of the FPLP notice and levy process, taxpayers may be referred to the Taxpayer Advocate Service for assistance if the respective Operating Division or Functional Unit is unable to provide immediate relief, especially taxpayers that have matched with a social security benefit payment. Service personnel should refer to IRM 13.1.7, Taxpayer Advocate Case Processing for guidance prior to referring taxpayers or potential problems to the TAS for assistance. Although taxpayer problems may meet TAS criteria, it is not necessary to refer the cases to the TAS, if the problems can be resolved immediately.
- It may be necessary to block or release the case from the FPLP, using the procedures in IRM 5.11.7.2.6, if a resolution is pending and no other exclusionary criteria exist.
5.11.7.2.5
(07-26-2002)
How to Recognize and Handle A FPLP Case
- Revenue officers must recognize modules that have been placed in the FPLP and determine if this process will be part of their strategy to resolve the case.
- If revenue officers decide that modules should not be part of FPLP, then they will need to place a block on the modules using procedures in IRM 5.11.7.2.6.
5.11.7.2.5.1
(07-26-2002)
FPLP Indicators
- Modules will remain in their original Master File status codes if they are selected for the FPLP.
- Master File (I/BMFOL) entity will display the indicator FMS LEVY>1 or FMS-CD>1, if at least one module has been selected in the FPLP. If it has not been selected for the FPLP, the MF entity screen will display 0 or no digit.
- IDRS (cc ENMOD) will display the indicator FMS>1 on the entity screens, if at least one module has been selected in the FPLP. If it has not been selected for the FPLP, IDRS entity screen will display 0 or no digit.
-
Each Master File and
IDRS tax module (cc TXMOD, I/BMFOLT) will also
display the following:
FMS LEVY/CD > 1 Currently not included in FPLP; however, at one time the module was included in FPLP. FMS LEVY/CD > 3 Currently included in the FPLP. FMS LEVY/CD > other numeric or alpha code Current or pending block from FPLP. - Integrated Collection System (ICS) will display " FPLP" in red on the case summary and module summary screens when the case meets the criteria & is placed in the program. The red "FPLP" is generated from the entity indicator FMS LEVY/CD>1, or the tax module indicator FMS LEVY/CD>3, respectively.
5.11.7.2.5.2
(07-26-2002)
SSA No Levy Indicator
- As discussed in IRM 5.11.7.2.2.1 (3), social security benefit payments of IMF taxpayers will not be subject to the FPLP levy if they meet an income exclusion criterion based on the following Master File indicator. The dollar amount of the income exclusion will be in defined in LEM 5.
-
CC IMFOLE will display
the following indicators. (The indicators should be
displayed on IDRS and ICS entity screens in 2003.)
SSA NO LEVY: 00
The latest income tax return filed under a taxpayer's own primary SSN, that is available on the Master File, has a Total Positive Income above a certain dollar amount; or the latest year income tax return filed is an SFR; or the latest year income tax return filed is in retention; or there is an open TDI after the latest year income tax return filed. SSA NO LEVY : 01 The latest income tax return filed under a taxpayer's own primary SSN, that is available on the Master File, has a Total Positive Income below certain dollar amount & there is no TDI for subsequent year(s). If the latest filed tax return that is used to determine SSA No Levy: 01, subsequently moves to retention, then SSA No Levy: 01 will not change unless a later return is filed that would result in a change. - Total Positive Income (TPI) is defined as the sum of gross positive income that is taxable and is displayed on CC IMFOLR. SFR returns do not display a TPI. TPI is not based on CC IRPTR data.
- If a social security payment is matched, and if there is a SSA No Levy: 00, then the payment may be subject to the FPLP levy.
- If a social security payment is matches, and if there is a SSA No Levy: 01, then the payment will not be subject to the FPLP levy.
5.11.7.2.5.3
(07-26-2002)
TC 97X Action Codes
-
The following TC 97X
action codes are associated with the FPLP:
TC 971 AC 060 Module in FPLP. TC 972 AC 060 (computer generated only) Module reversed out of FPLP. TC 971 AC 061 Block or release of module from FPLP. See IRM 5.11.7.6. TC 972 AC 061 Reversal of block on module. TC 971 AC 062 Federal payment match or levythrough FPLP. DLN indicates type of federal payment. TC 971 AC 069 Final Notice (Notice of Intent to Levy & Notice of Your Right to a Hearing) generated and mailed certified with return receipt requested.
CP 90/297: FPLP issued
LT 11 : ACS issued
L1058: Area Office issuedTC 972 AC 069 Final Notice (Notice of Intent to Levy & Notice of Your Right to a Hearing) not mailed. TC 971 AC 169 Final Notice Before Levy on Social Security Benefits (CP 91/298) generated and mailed regular mail. TC 972 AC 169 Final Notice Before Levy on Social Security Benefits (CP 91/298) not mailed. TC 670 DPC 18 FPLP payment posted TC 672 DPC 18(computer generated only) FPLP payment reversed by FMS due to nonentitlement claim initiated by federal payment agency source. - If a module is selected for the FPLP, then a TC 971 AC 060 will be posted. ICS will display the red FPLP indicator.
- If a federal payment is matched or levied, then a TC 971 AC 062 will post.
- Master File will systemically verify if a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing, has been issued by identifying an unreversed TC 971 AC 069 on the module. If there is none, Master File will systemically generate one CP 90 or 297, and post a TC 971 AC 069 on the module.
- Once Master File verifies the unreversed TC 971 AC 069 has been posted for a least 10 cycles and the module is still subject to levy, then a levy will be transmitted to FMS and TC 971 AC 062 will post once a payment is levied.
- If the match is a social security benefit payment, and the TC 971 AC 069 has been posted for a least 10 cycles or weeks and the module is still subject to levy, then Master File will systemically generate a Final Notice Before Levy on Social Security Benefits (CP 91 or 298) and post a TC 971 AC 169 on the module. After 8 cycles from the date of the TC 971 AC 169, then a levy will be transmitted to FMS and TC 971 AC 062 will post once a payment is levied.
-
FMS will transmit the
payment to the IRS through the Electronic Federal
Tax Payment System (EFTPS), and a TC 670 DPC 18 will
post on the taxpayer's module.
Note:
FMS may systemically reverse a TC 670 DPC 18 payment with TC 672 DPC 18, when the federal payment agency determines the taxpayer was not entitled to the payment.
5.11.7.2.5.4
(07-26-2002)
Document Locator Number (DLN)
(TC 971 AC 062)
-
The DLN associated with
TC 971 AC 062 will include information about:
- Federal payment agency source
- Type of federal payment matched for levy
- If the module was matched or levied
Exhibits 5.11.78 and 5.11.79displays and describes the TC 971 AC 062 DLN format for the type of federal payment and federal payment agency source. - The Federal payment agency source for federal salaries will display the salary paying agency (i.e. USDA's National Finance Center; Department of the Interior's National Business Center; etc.), rather than the actual federal employer of the taxpayer.
5.11.7.2.5.5
(07-26-2002)
FPLP or Paper Levy (Form 668A or W)
- Whenever the FPLP indicator is present on a module, revenue officers may decide to levy the federal payment source through the FPLP attaching up to 15% of the disbursement; or they can issue a Notice of Levy, Form 668A or Form 668W, levying the federal payment source directly and attaching the maximum amount allowed.
- Revenue officers cannot close a case as a continuous FPLP levy. This is because continuous levies are placed in Status 60 and FPLP will systemically exclude Status 60 cases which are also classified as installment agreements. Continuous levies on the federal payment agency may still be issued using Form 668W, and placed in Status 60. In order to close a case as a continuous levy on a federal payment agency for wages, salary or other income, revenue officers must issue a paper levy directly to the federal agency, not FMS.
-
Prior to levying a
federal payment agency with Form 668A or Form 668W,
the revenue officer must release or block the module
from FPLP by inputting TC 971 AC 061 (See IRM
5.11.7.2.6 below) or close the module in a
continuous levy status code (i.e. Status 60). This
will stop the module from being levied through the
FPLP.
Caution:
Electronic levies through the FPLP and paper levies should not be issued or attach to the same federal payment source. If a paper levy is issued to a federal agency while the taxpayer is being levied through the FPLP for the same payment, the federal agency will return the paper levy to the originator.
5.11.7.2.6
(07-26-2002)
Blocking or Releasing FPLP Levy
- The criteria and delegation authority for release of levy will not change for the FPLP. See IRM 5.11.2.2, Serving Levies, Releasing Levies and Releasing Property.
-
The FPLP levy must only be released electronically. Do
not prepare a Form
668D, Release of Levy/Release of
Property from Levy, for FMS or the federal
payment agency source.
Caution:
FMS and other federal agencies will not process the Form 668D on a FPLP levy, and will return it to its originator.
-
FPLP levies must only be released by posting a
transaction code (TC) that would exclude the taxpayer
from the FPLP as discussed in IRM 5.11.7.2.2.1. See also
Exhibit 5.11.74, FPLP Exclusion
Criteria. Posting a FPLP exclusion TC will
generate a TC 972 AC 060 reversing the existing TC 971
AC 060.
Example:
Taxpayer Henry is being levied through the FPLP. Revenue Officer Teresa determined that Taxpayer Henry's case will be resolved as a financial hardship and inputs a TC 530 CC 24. The TC 530 cc 24 will generate a TC 972 AC 060 indicating the module is released from the FPLP.
-
If a FPLP exclusion TC is not yet warranted on a
taxpayer's case, then input the automated levy block, TC
971 AC 061, on each appropriate module. Posting the TC
971 AC 061, will generate a TC 972 AC 060 reversing the
existing TC 971 AC 060. Do not input both a FPLP
exclusion TC and TC 971 AC 061 on the same cycle. TC 971
AC 061 may be input via ICS or Form 4844 and should
indicate the taxpayer's name, TIN, address, MFT, and
periods.
Example:
Revenue Officer John has a FPLP case module on Taxpayer Jane. Revenue Officer John is going to resolve the case as a financial hardship but needs Taxpayer Jane to file delinquent returns. While waiting for the returns, Revenue Officer John inputs a TC 971 AC 061 each affected module releasing the FPLP levy. The TC 971 AC 061 generates a TC 972 AC 060 to indicate the module is released from the FPLP.
Example:
Taxpayer Tom, who is in the FPLP with TC 971 AC 060, requests an installment agreement. Revenue Officer Casey inputs a pending IA (TC 971 AC 043). Since TC 971 AC 043 is a FPLP exclusion TC, it will generate a TC 972 AC 060, therefore TC 971 AC 061 is not necessary and must not be posted.
-
The TC 971 AC 061 may also be input on
each balance due
module, regardless of collection status, in order for
that balance due module to be blocked from going into
the FPLP.
Example:
Revenue Officer Bill does not want his taxpayer's new Status 21 balance due module going into the FPLP when it changes to Status 26. He will input TC 971 AC 061 on the Status 21 module.
- A
FPLP exclusion TC or TC 971 AC 061 must be posted before
the next payment is processed by FMS. FMS has different
cutoff dates before they process the federal payments to
the taxpayer and IRS. Therefore the TC must be posted
for the following types of payments by:
FEDERAL PAYMENT PAYMENT DATE PROCESSING CUTOFF DATE OPM 1st of each month 2 weeks before payment date SSA 3rd of each month;
2nd, 3rd & 4th Wednesday of each month6 business days before the payment date Federal Salaries Biweekly 1 week before payment date Vendor;
Federal employee travel paymentsDaily Cutoff dates vary -
If the TC is not posted by the cutoff date, then the
FPLP levy may also be released by the FPLP coordinator
as discussed in the next section.
Note:
If the cutoff date is missed, then the levy releases will be effective for the payments thereafter. Refer to IRM 5.11.7.2.7, Manual Refunds, to determine if the levied payment may be returned and refunded due to timing issues.
5.11.7.2.6.1
(07-26-2002)
Emergency Release of FPLP Levy and FPLP
Coordinator
- In addition to inputting the appropriate FPLP exclusion TC or TC 971 AC 061 releasing the FPLP levy as discussed above, situations will arise when the levy must also be released directly from the FMS database system by a designated FPLP coordinator (e.g, bankruptcy, erroneous or wrongful levy, Taxpayer Assistance Orders, extreme economic hardship, social security benefit payment levy).
- Each SBSE Compliance Area Office has a designated FPLP coordinator who will have on-line computer access to the FMS database system in order to release or "rescind" a levy.
-
The levy rescind from
the FMS database is effective at the time of the
input until the next time the FMS database is
updated with taxpayer information from the Master
File, which is usually every week. The FPLP
coordinator's "rescind" input in the FMS database
will not upload to IDRS or MF. The input must also
be done before the cutoff date as discussed above in
IRM 5.11.7.2.6(6).
Caution:
Since the FMS database is updated weekly with the current taxpayer information from the Master File, then any actions on the FMS database, including "rescinds" by the FPLP coordinator, will only last until it the database is updated again which is usually the following week. It may take up to 3 cycles before the FMS database receives the FPLP reversal TC 972 AC 060, and it may be necessary to request the rescind often as necessary until the TC 972 AC 060 posts. It will be the responsibility of the employee requesting the "rescind" to monitor the TC.
-
To release a FPLP levy
through the FPLP coordinator, prepare Form 4844 and
fax it to the FPLP coordinator. Indicate on Form
4844:
- Under "Remarks" FPLP Levy Release
- Taxpayer's TIN, name and address
- Signature of delegated official authorized to release levies
- Call the FPLP coordinator to ensure receipt.
- Keep a copy of the Form 4844 with the file.
Caution:
Do not prepare a Form 668D, Release of Levy/Release of Property from Levy, for FMS or any federal payment agency to release a FPLP levy.
5.11.7.2.6.2
(07-26-2002)
FPLP Coordinator Duties
- The FPLP coordinator will have computer access to the FMS database system to input an emergency or stop-gap FPLP levy release.
- The FPLP coordinator is not required to input the TC 971 AC 061 block/release or any other necessary FPLP exclusion TC. It is the responsibility of the employee resolving the case.
- Form 4844 (or Form 668D from those following IRM 5.19.9, ACS Liability Collection) will serve as the input document for the FPLP coordinator. The coordinator will sign onto the FMS system and rescinds all the modules from the levy.
- Requests for FPLP levy rescinds must be input within 24 hours of receipt.
- The FPLP coordinator is not responsible for authorizing the levy release.
- Coordinators should also provide subject matter support for the operating divisions.
5.11.7.2.6.3
(07-26-2002)
Bankruptcy
- If a taxpayer files for bankruptcy and modules have been included in the FPLP, the Insolvency Units will input the TC 520. The TC 520 will systemically reverse a module out of the FPLP and generate a TC 972 AC 060.
- It may be necessary to contact the FPLP coordinator to release the FPLP levy through the FMS system. Insolvency personnel may refer to IRM 5.5.4.3.6, Insolvency, Decedents, Estates, Collecting Actions on Insolvencies and Decedent Cases, for more instructions on how to proceed with taxpayers who are in the FPLP and have filed bankruptcy.
5.11.7.2.6.4
(07-26-2002)
Reversing the FPLP Block (TC 972 AC 061)
- If revenue officers receive a case with the tax modules blocked from the FPLP process with an unreversed TC 971 AC 061, and a decision is made to include the module in the FPLP, then revenue officers should request input of TC 972 AC 061.
- Upon closing or resolving a case, revenue officers must reverse any manually input TC 971 AC 061 with TC 972 AC 061 in order to allow those case modules into the FPLP in the future. A manually input TC 971 AC 061 is indicated when the DLN does NOT display a series of 999's in the 6th through 13th position.
5.11.7.2.7
(07-26-2002)
Manual Refunds
- FPLP payments are identified with a TC 670 DPC 18.
- In situations where a levied payment has been already been processed by FMS and transmitted to the Service after the levy has been released, then the levied payment may be returned to the taxpayer and a manual refund may be issued in accordance with IRM 5.11.2.3, Authority for Returning Levied Property to the Taxpayer, and IRM 5.1.15.7, General Handbook, Account Transfers, Adjustments, Payment Tracers, Credit Transfer, and Refunds, Requests for Manual Refunds.
- There may be other situations as discussed in IRM 5.11.2.3 where the levied property may be returned to the taxpayer and manual refund issued.
5.11.7.3
(07-26-2002)
Alaska Permanent Fund Dividend Levy Program
5.11.7.3.1
(07-26-2002)
Background and Authority
- The Alaska Permanent Fund Dividend (AKPFD) Levy Program is an automated levy program, which operates in conjunction with the State of Alaska, Department of Revenue-Permanent Fund Dividend Division.
- Beginning in 2001, SB/SE, Compliance Policy, Payment Compliance, Office of Enforcement assumed responsibility of this locally operated program from the former Pacific-Northwest District office. The program matches a Master File database of delinquent taxpayers against a database of applicants eligible for the Permanent Fund Dividend.
- The program is administered pursuant to Internal Revenue Code (IRC) Section 6331, Levy and Distraint, and Section 6330, Notice and Opportunity For A Hearing Before Levy.
5.11.7.3.2
(07-26-2002)
Alaska Permanent Fund Dividend
- The AKPFD is an investment fund of the state's oil wealth, which belongs to all residents of the State of Alaska. The fund was created in 1976 by a voter-approved amendment to the state constitution. The value of the fund varies from year to year, based on the economy. The value of the fund is used to determine the amount of the dividend each year. For example, in 1992, the dividend for each resident was $915.84, and in 2001, it was $1850.28.
5.11.7.3.3
(07-26-2002)
Memorandum of Understanding
- There is a Memorandum of Understanding (MOU) between the IRS and the State of Alaska. The purpose of the MOU is to outline the authority, procedures and responsibilities of the IRS and the State of Alaska, Department of Revenue.
-
Specific information included in the MOU is as follows:
- Authority to levy under IRC Section 6331, and the effect of honoring the levy pursuant to IRC 6332(e).
- Rights and responsibilities of the IRS and the State of Alaska, including service of the levy and satisfaction of honoring the levy.
- Confidentiality of IRS and Alaska information.
- Notice Issuance by the IRS.
- Other miscellaneous duties and responsibilities.
- The MOU is valid until terminated or revised, by either party, with proper prior notice. It also stipulates that at least once a year the IRS and the State of Alaska will meet to discuss the status of the program and decide on any improvements, revisions, etc., based on current factors involving resources, economy, and policy. Further, the agreement can be terminated or modified at the discretion of the IRS or the State of Alaska, due to changes in federal or state statutes and regulations.
- Currently, the MOU is subject to approval by the SBSE Compliance Area 12 Director and State of Alaska, Permanent Fund Dividend Division Director.
5.11.7.3.4
(07-26-2002)
How The Program Works
- The AKPFD is an automated levy program that matches a Master File database of delinquent taxpayers that meet certain criteria, with the State of Alaska database of residents eligible to receive the Permanent Fund Dividend.
-
On or about June 15th of each year, the State of Alaska
will provide the IRS with its database of eligible
applicants, at which time the validation process begins.
- The Alaska file is first sent to the Anchorage IRS office, where discrepancies such as invalid social security numbers, name controls and dates of birth are corrected.
- The file is then sent to Tennessee Computing Center (TCC) to validate the Alaska records.
- Errors in the file are then sent back to the Anchorage office to be corrected.
- The next step in the levy process is to ensure that the IRS database of taxpayers has been validated and only the taxpayers eligible for levy action remain on the levy file.
- In order to ensure that only taxpayers eligible for levy action are included on the IRS database, extensive exclusion criteria has been established and programmed into the IRS validation process. For specific information regarding exclusion criteria, refer to IRM 5.11.7.3.6, Exclusions From Levy.
- Once a determination has been made to include a taxpayer on the levy file, a TC 971 Action Code 601 is input on each tax period subject to the AKPFD levy. This is a unique identifier used exclusively to identify AKPFD accounts selected for levy action.
- The taxpayer is next notified of the IRS intent to levy. This is accomplished through either of two notices currently being used exclusively for the AKPFD levy. The CP-77 is a Collection Due Process (CDP) notice, and the CP-78 is a Reminder notice. Notices are generally mailed to taxpayers in July, in order to allow ample response time for the taxpayer. For specific information regarding the notice issuance process, refer to IRM 5.11.7.3.7, AKPFD Correspondence Notices.
-
After notices are issued to taxpayers, there is a period
of approximately 45 to 60 days for the taxpayer to
consider resolving the tax account, prior to initiating
levy action. Resolution may include, but is not limited
to:
- Full payment
- Proof of payment
- Installment Agreement
- Offer-in-Compromise
- CDP or CAP Appeal
- During this period of time prior to initiating levy action, accounts are worked either through written correspondence and/or telephone contacts. Once a determination is made to remove the taxpayer or a specific tax period from the levy file, documentation is completed and forwarded to the SBSE Compliance Area 12, Anchorage Territory, AKPFD Program Manager for inclusion into a "No Levy" file maintained strictly by that office. For procedures pertaining to the "No Levy" file, refer to IRM 5.11.7.3.9, AKPFD Inquiries.
- On or about September 15th, the IRS levy file is forwarded to the State of Alaska, Permanent Fund Dividend Division, along with a Notice of Levy, signed by the group manager in Anchorage.
- Generally, levy proceeds are received beginning in October, and continue through the end of the year. Payments generally include 2-3 large payments and several smaller payments. This is contingent upon State of Alaska processing constraints.
5.11.7.3.5
(07-26-2002)
Criteria
-
The following types of tax and collection status can be
selected for levy through the AKPFD program:
Master File Tax Code (MFT) 30, 31, 55
Individual Master File onlyMaster File and IDRS Collection Status Codes 22, 23, 24, 26
53 with closing codes 03, 09, 12, and 39 - The Master File status of a tax module will not change when it is selected for AKPFD levy.
- At this time, only Individual Master File (IMF) accounts are included in the AKPFD levy.
- For each tax module, there must be a TC 971 AC 069, and it must have been posted on the account for at least 45 days prior to inclusion into AKPFD.
5.11.7.3.6
(07-26-2002)
Exclusions From Levy
- The AKPFD automated levy program incorporates numerous safeguards to ensure that only tax accounts subject to levy are included in the AKPFD database, which is sent to the State of Alaska each year.
- Taxpayer entities or specific balance due tax periods with certain conditions are excluded from the AKPFD levy. See Exhibit 5.11.7-10, AKPFD Exclusion Criteria,displays and describes the transaction and freeze codes that are excluded.
- Excluded from the AKPFD levy are entities/tax period(s) that are prohibited from levy either by statute or administrative decision. Examples include installment agreements, Offer In Compromise, Innocent or Injured Spouse, Bankruptcy, as well as other criteria, as shown in the exhibit.
- Entities/tax period(s) are systemically excluded from the AKPFD levy prior to creating the initial levy file, and again prior to sending the final levy file to the State of Alaska. In addition, the Anchorage Compliance Territory Office may exclude tax accounts manually up until the date the levy file is delivered to the State of Alaska.
5.11.7.3.7
(07-26-2002)
AKPFD Correspondence Notices
- Pursuant to IRC 6330, AKPFD will systemically issue a notice to the taxpayer, prior to initiating levy action. The CP-77, Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing,is a Collection Due Process (CDP) appeal rights notice. This is sent to the taxpayer certified mail, return receipt requested, at least 45 days prior to initiating levy action. Generally, this notice is sent only if one has not already been sent for the same tax period(s). Exhibit 5.11.7-11 displays a copy of the CP-77 notice.
- The CP-77 is a Master File generated notice, mailed certified with a return receipt (PS 3811) requested pursuant to RRA 98. The notice describes the final notice of intent to levy, and appeal rights, along with the balance due amounts. A TC 971 AC 069 will systemically post on each module when the CP-77 is generated.
- On joint liabilities, changes are pending to include a separate notice and TC 971 AC 069 for the spouse (secondary SSN).
-
If an additional assessment is present after the TC 971
AC 069 posted to the module, then another CDP notice,
will be mailed and another TC 971 AC 069 posted to the
module.
Note:
A TC 971 AC 069 posted to the module on 04/01/2001, and a TC 300 for $300.00 posted to the module on 05/01/2001, then another CDP notice (possibly the CP 77) would be mailed and another TC 971 AC 069 would post to the module.
- The return receipt card (PS 3811) will be delivered back to the service center campus where it was mailed, and a TC 971 AC 066, 067, 068 will be input to the module(s) to indicate the status of mail delivery.
-
For any tax modules not requiring to a CDP notice, a
CP-78, Reminder Notice,
will be systemically generated by Master File, and
mailed regular mail to the taxpayer, prior to initiating
levy action. Exhibit 5.11.7-11
displays a copy of the CP-78 notice.
- The CP-78 does not entitle the taxpayer to a CDP hearing, but does provide for a Collection Appeals Program (CAP) request, if the taxpayer requests one. The notice describes the final notice of intent to levy, and appeal rights, along with the balance due amounts.
- Both the CP-77 and CP-78 provide an ACS toll-free telephone number to contact for assistance. For W&I taxpayers, the telephone number is 1-800-829-7650 and for SBSE taxpayers the telephone number is 1-800-829-3903. These telephone numbers are available for taxpayers to resolve their tax accounts or exercise their appeal rights.
5.11.7.3.8
(07-26-2002)
Appeal Procedures
- The CP-77 notice includes Form 12153, Request for a Collection Due Process Hearing, Publication 1660, Collection Appeal Rights, and Publication 594, IRS Collection Process. This information will provide guidance on the appeal process and how to request a CDP hearing. If a taxpayer wants to request a hearing, he/she will send the request to the address shown on the notice.
- The taxpayer must request a CDP hearing in writing. Form 12153 or a written statement may be used for this purpose. The request must be made or postmarked within 30 days from the date of the notice and the date of the TC 971 AC 069. Requests postmarked after the 30 days will be considered late and will be worked as an Equivalent hearing request.
- The Service representative handling the inquiry should attempt to resolve the tax account prior to forwarding the CDP or Equivalent hearing request to Appeals. When this occurs, request input of a TC 971 AC 061with receipt of a timely filed Appeal, which will stop the account from being levied. If the account is resolved, the taxpayer may choose to withdraw the request. The withdrawal must be in writing Form 12256, Withdrawal of Request for Collection Due Process Hearingcan be used for this purpose. A TC 972 AC 061 should be input once a withdrawal request is approved.
- If the representative is unable to resolve the account, the CDP or Equivalent hearing request will be forwarded to Appeals for resolution. Service personnel are to process any appeals requests in accordance with procedures in IRM 5.1.9, General Collection Procedure, Collection Appeal Rights or IRM 5.19.8, Collection Appeal Rights.
- When the taxpayer is barred from requesting a CDP or Equivalent hearing, he/she has the option to appeal the levy action under the Collection Appeals Program (CAP).
5.11.7.3.9
(07-26-2002)
AKPFD Inquiries
- CP 77 or CP 78 responses will be via written correspondence or a telephone call to either ACS toll-free telephone number.
- Taxpayers are generally afforded up to 45 days to resolve the tax account prior to the final levy file going to the State of Alaska. Once the file is received by the State, IRS or the State can no longer remove accounts.
- The taxpayer may request a CDP/Equivalent hearing, at which time the procedures outlined in IRM 5.11.7.3.8 Appeal Procedures, will be followed.
-
If the taxpayer is interested in making arrangements to
resolve the account, and a decision is reached to remove
the account from levy action, then proceed with the
following:
- The initiator will complete the "Permanent Fund Dividend No Levy/Levy Release" form, including an explanation as to why the Permanent Fund Dividend should not be levied or by attaching the appropriate documentation to remove the account from the levy file. It is essential that the documentation substantiate the request to release the account from levy action. Exhibit 5.11.712, Permanent Fund Dividend No Levy/Levy Release, displays a list of reasons to chose from for the levy release, and must be signed by the group manager.
- The levy release form will be faxed directly to the Compliance territory manager in the Anchorage, AK office at (907) 271-6413.
- The form contains various reason codes, which are used to identify the basis for requesting a release of levy.
-
The Compliance territory manager will ensure that all
requests are accurate and complete. After a
determination is made to approve the release, the
manager will:
- Sign/date the Permanent Fund Dividend No Levy/Levy Release form.
- Forward completed forms to the IRS Permanent Fund Division Coordinator (PFDC).
- Ensure that the PFDC signs and dates the form indicating that the tax account was added to the "No Levy List."
- Ensure that the PFDC coordinates with ITS employees at the service center campus to provide them with a final "No Levy" list.
- The deadline for processing "No Levy" claims may change each year, contingent upon deadlines established by the State of Alaska.
5.11.7.3.10
(07-26-2002)
AKPFD Payments
- The State of Alaska Permanent Fund Dividend Division generally begins the payout process during the month of October. Payments made to the IRS as a result of the Notice of Levy are generally paid in two or three large payments and several smaller payments from October through December each year.
- AKPFD payments are identified on tax modules with a Transaction Code (TC) 670, Designated Payment Code (DPC) 22 for systemically applied payments and DPC 23 for manually applied payments.
- Currently, AKPFD payments are systemically applied through an automated payment application program, similar to that of the SITLP program. The State of Alaska sends the IRS a file of taxpayer data, which includes specific taxpayer information required to accurately apply levy payments. The data file is accompanied by a paper check. Usually the state will send 2-3 separate files and checks. Subsequent smaller payments are sent directly to the AKPFD coordinator at the Anchorage office, to be applied to various tax accounts.
- Beginning in 2003, AKPFD payments may be applied electronically. This will be accomplished through Electronic Federal Tax Payment System (EFTPS). This method of payment presents many additional options to the state for depositing levy proceeds. In addition EFTPS is a more efficient method of applying levy proceeds.
Exhibit 5.11.7-1
(07-26-2002)
SITLP Exclusion Criteria
If any of the exclusion criteria are identified during the tax account review, then appropriate actions are necessary to refund all or a portion of the SITLP levy proceeds. The "E" designates Entity exclusion and the "M" designates Module exclusion from SITLP levy.
| TRANSACTION OR FREEZE CODE | REMARKS | |
|---|---|---|
| E | Unreversed TC 500 or C freeze | Military deferment |
| E | Unreversed TC 910, 914, 916, 918 or T or Z freeze | CID Hold |
| E | Unreversed TC 480 or TC 780 or Y freeze | OIC Pending |
| E | Unreversed TC 976 or 977 or A freeze | Duplicate Return freeze |
| E | Unreversed TC 530 cc 08 | CNC Deceased |
| E | Unreversed TC 540 or Date of Death indicated on CC INOLES | Deceased Taxpayer |
| E | Unreversed TC 971 AC 043 | Pending IA |
| E | Unreversed TC 971 AC 063 | Approved IA |
| E | Unreversed TC 971 AC 099 | Taxpayer Assistance Order (TAO) |
| E | Unreversed TC 524 | Collateral Agreement Pending |
| E | Unreversed TC 971 AC 086, 087 | Open Disaster case |
| E | Unreversed TC 520, all CC's except CC 76, 77 | Bankruptcy/Litigation |
| E | Unreversed TC 470 | Taxpayer Claim pending |
| M | If the earliest CSED is within 3 months of expiration | CSED about to expire |
| M | Unreversed TC 971 AC 071 | Injured Spouse |
| M | Unreversed TC 971 AC 065 | Innocent Spouse |
| M | Unreversed TC 971 AC 275 or TC 520 CC 76, 77 | Taxpayer files CDP request |
| M | Unreversed TC 788 | Collateral Agreement completed |
| M | Unreversed TC 534 | Expired Balance Write-off |
| M | Unreversed TC 608 | Statute Expiration Clearance |
| M | Unreversed TC 971 AC 018 | Congressional/PRP Indicator |
| M | Unreversed TC 971 AC 031 | Full Bankruptcy discharged |
| E | Unreversed TC 971 AC 032 | Fully Accepted OIC |
Exhibit 5.11.7-2
(07-26-2002)
SITLP Coordinators
This exhibit displays the current list of SITLP Coordinators at each campus and may be subject to change.
| SERVICE CENTER CAMPUS | SITLP COORDINATOR |
|---|---|
| Andover Campus | Sandy Eidam/Donna Hajj |
| Atlanta Campus | Marianna Yates/Cindy Pilgrim |
| Austin Campus | Jackie Whitted/Theresa Hardin |
| Brookhaven Campus | Patricia Gonzalez/Peggy Rein |
| Cincinnati Campus | Michael Wirtley/Ingrid Smith |
| Fresno Campus | Debbie Riffle |
| Kansas City Campus | Terri Barnard/Michelle Ashley |
| Memphis Campus | Lisa Smith |
| Odgen Campus | Cindy Lloyd |
| Philadelphia Campus | Barbara Neely/Warrena Romani |
Exhibit 5.11.7-3
(07-26-2002)
CP 92 (Notice of Levy on Your State Tax Refund, Notice
of Your Right To A Hearing)
Exhibit 5.11.7-4
(07-26-2002)
FPLP Exclusion Criteria
An entity that has one or more of the following codes in any balance due module, will be reversed out or not selected for the FPLP:
| TRANSACTION OR FREEZE CODE | REMARKS | |
|---|---|---|
| A | Unreversed TC 500 or C Freeze | Military deferment |
| B | Unreversed TC 910, 914, 916, 918 or T or Z Freeze | CID hold |
| C | Unreversed TC 480 or TC 780 or Y Freeze | OIC pending |
| D | Unreversed TC 976 or 977 or A Freeze | Duplicate return freeze |
| E | Unreversed TC 530 CC 2432 | CNC hardship |
| F | Unreversed TC 530 CC 08 | CNC Deceased |
| G | Unreversed TC 540 or Date of Death indicated on INOLES | Deceased taxpayer |
| H | Unreversed TC 971 AC 043 | Pending IA |
| I | Unreversed TC 971 AC 063 | Current IA |
| J | Unreversed TC 971 AC 099 | Taxpayer Assistance Order (TAO) |
| K | Unreversed TC 524 | Collateral Agreement pending |
| L | Unreversed TC 971 AC 086 OR 087 | Open Disaster Case |
| M | Unreversed TC 520 all CCs except CC 76, 77 (CDP) | Bankruptcy/Litigation |
| N | Unreversed TC 470 | Taxpayer claim pending |
| O | Unreversed Master File Employment Code> F | Taxpayer is Federal Government Agency |
A balance due module that has one of the following, will be reversed out or not selected for the FPLP:
| TRANSACTION OR FREEZE CODE | REMARKS | |
|---|---|---|
| A | If the earliest CSED is within 3 months of expiration | |
| B | Unreversed TC 971 AC 061 | Block from FPLP |
| C | Unreversed TC 971 AC 065 | Innocent Spouse module |
| D | Unreversed TC 971 AC 071 | Injured Spouse module |
| F | Unreversed TC 971 AC 275 | Taxpayer files CDP request which is pending assignment to Appeals |
| G | Unreversed TC 520 CC 76, 77 | CDP filed with Appeals |
Any IMF entity with the following is not subject to a FPLP levy on social security payment(s):
| INDICATOR | REMARKS |
|---|---|
| SSA No Levy > 01 | Total Positive Income on latest year income tax return filed is below certain dollar amount & there is no TDI for subsequent year(s). Social security benefit payment, if matched, will be excluded from FPLP levy. |
Exhibit 5.11.7-5
(07-26-2002)
CP 90 / 297 (Final Notice, Notice of Intent to Levy and
Notice of Your Right To A Hearing)
Exhibit 5.11.7-6
(07-26-2002)
CP 91 / 298 (Final Notice Before Levy on Social Security
Benefits)
Exhibit 5.11.7-7
(07-26-2002)
Department of the Treasury, Financial Management Service
(FMS) Notice to Taxpayers
Exhibit 5.11.7-8
(07-26-2002)
Document Locator Number (DLN) Format of Federal Payment
Type
FPLP Document Locator Number Positions
| 1 | 2 | 3 | 4 | 5 | | 6 | 7 | 8 | | 9 | 10 | 11 | 12 | 13 | |
| 2 | 8 | 2 | 7 | 7 | | 9 | 0 | 1 | | 0 | 8 | 0 | 2 | 0 | |
The values for positions 7, 8, 9, & 10 identify the Federal Payment Agency.
Note:
See Exhibit 5.11.79 for a complete list of the Federal Payment Agency Identifier codes.
Example:
Office of Personnel Management: 0108
The values for positions 11 & 12 identify the Type of Federal Payment:
- 01 Social security benefit payment
- 02 Federal retirement income
- 03 Federal contract or vendor payment
- 03Federal employee travel advance/reimbursement payment (limited to IMF only)
- 04 Federal salary payment
The value for position 13 identifies whether FMS matches a record for the taxpayer or if funds were levied:
- 0 Federal disbursement matched
- 1 Federal disbursementlevied
The DLN listed above would indicate that FMS matched (position 13 = 0) records with OPM (positions 7, 8, 9 & 10) on an OPM payment (positions 11, 12 & 13).
Other examples:
Example:
TC 971 AC
062 DLN 28277901080200
Match OPM (federal source) on federal retirement payment.
Example:
TC 971 AC
062 DLN 28277902070110
Levy SSA (federal source) on social security benefit payment.
Example:
TC 971 AC
062 DLN 28277904070410
Levy NFC (federal source) on federal salary payment.
Exhibit 5.11.7-9
(07-26-2002)
Federal Payment Agency Identifier Code List
Exhibit 5.11.7-10
(07-26-2002)
AKPFD Exclusion Criteria
The chart below lists specific Transaction or Freeze codes excluded from levy action. An entity or balance due module that has one or more of the following codes will be excluded from AKPFD levy action. The "E"designates Entity exclusion and the "M" designates Module exclusion from AKPFD levy.
| TRANSACTION OR FREEZE CODE | REMARKS | |
|---|---|---|
| E | Unreversed TC 500 or C freeze | Military deferment |
| E | Unreversed TC 910, 914, 916, 918 or T or Z freeze | CID Hold |
| E | Unreversed TC 480 or TC 780 or Y freeze | OIC Pending |
| E | Unreversed TC 976 or 977 or A freeze | Duplicate Return freeze |
| M | Unreversed TC 530 CC 2432 | CNC Hardship |
| E | Unreversed TC 530 cc 08 | CNC Deceased |
| E | Unreversed TC 540 or Date of Death indicated on CC INOLES | Deceased Taxpayer |
| E | Unreversed TC 971 AC 043 | Pending IA |
| E | Unreversed TC 971 AC 063 | Approved IA |
| E | Unreversed TC 971 AC 099 | Taxpayer Assistance Order (TAO) |
| E | Unreversed TC 524 | Collateral Agreement Pending |
| E | Unreversed TC 971 AC 086, 087 | Open Disaster case |
| E | Unreversed TC 520, all CC's except CC 76, 77 | Bankruptcy/Litigation |
| E | Unreversed TC 470 | Taxpayer Claim pending |
| M | If the earliest CSED is within 3 months of expiration | CSED about to expire |
| M | Unreversed TC 971 AC 061 | Levy Block (See IRM 7.3.8 (3)) |
| M | Unreversed TC 971 AC 071 | Injured Spouse |
| M | Unreversed TC 971 AC 065 | Innocent Spouse |
| M | Unreversed TC 971 AC 275 | Taxpayer files CDP request which is pending assignment to Appeals |
| M | Unreversed TC 520 CC 76, 77 | CDP filed with Appeals |
| M | Unreversed TC 788 | All conditions of Collateral Agreement completed |
| M | Unreversed TC 534 | Expired Balance Write-off |
| M | Unreversed TC 608 | Statute Expiration Clearance |
| M | Unreversed TC 971 AC 018 | Congressional/PRP Indicator |
| M | Unreversed TC 971 AC 031 | Full Bankruptcy discharged |
| E | Unreversed TC 971 AC 032 | Fully Accepted OIC |