Lien Processing

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Tax Lien - IRS Lien - Lien Discharge
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Lien Filing Requirements
Lien Filing Requirements cont.
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Lien Processing
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Internal Revenue Code 6330
Certificate of Discharge from Tax Lien
Certificate of Subordination of Tax Lien
Lien Notice Requirements and Appeals
Tax Lien Certificate
6325 Regulations
Action to quiet title
Burden of Proof
Collateral Estoppel
Discharge of Bankruptcy
Effect of Partial Abatement
Certificate of release of tax lien
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Claim for Damages
Choate Requirement - State Law
Suit to Cancel Lien
Certificate of Subordination
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Effect of Discharge
7425 Statute
7425 Regulations
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Notice of Sale
Notice Requirement
Period of Redemption p1
Period of Redemption p2
Redemption Payment
Release of Right of Redemption
Scope of Redemption
After Foreclosure Result
Foreclosure Sales
6320-Applicability of Statute
6321 - After Aquired Property p1
6321 - After Aquired Property p2
6321 - After Aquired Property p3
6321 - After Aquired Property p4
6321 - Applicability of Statute
6321 - Collection Due Process Hearings
6321 - Annuities
6321 - Bank Deposits p1
6321 - Bank Deposits p2
6321 - Bankruptcy p1
6321 - Bankruptcy p2
6321 - Bankruptcy p3
6321 - Bankruptcy p4
6321 - Bankruptcy p5
6321 - Bankruptcy p6
6321 - Conveyances to Related Parties p1
6321 - Conveyances to Related Parties p2
6321 - Conveyances to Related Parties p3
6321 - Conveyances to 3rd Parties p1
6321 - Conveyances to 3rd Parties p2
6321 - Conveyances to 3rd Parties p3
6321 - Conveyances to 3rd Parties p4
6321 - Community Property p1
6321 - Community Property p2
6321 - Community Property p3
6321 - Employee Pension Plans
6321 - Creation of Lien p1
6321 - Creation of Lien p2
6321 - Creation of Lien p3
6321 - Creation of Lien p4
6321 - Creation of Lien p5
6321 - Debts Owed to the Taxpayer p1
6321 - Debts Owed to the Taxpayer p2
6321 - Debts Owed to the Taxpayer p3
6321 - Debts Owed to the Taxpayer p4
6321 - Debts Owed to the Taxpayer p5
6321 - Debts Owed to the Taxpayer p6
6321 - Escrow Accounts
6321 - Foreign Property
6321 - Forfeited Property
6321 - Fraudulent Conveyances Part1 p1
6321 - Fraudulent Conveyances Part1 p2
6321 - Fraudulent Conveyances Part1 p3
6321 - Fraudulent Conveyances Part1 p4
6321 - Fraudulent Conveyances Part1 p5
6321 - Fraudulent Conveyances Part1 p6
6321 - Fraudulent Conveyances Part1 p7
6321 - Fraudulent Conveyances Part1 p8
6321 - Fraudulent Conveyances Part1 p9
6321 - Fraudulent Conveyances Part1 p10
6321 - Fraudulent Conveyances Part1 p11
6321 - Fraudulent Conveyances Part1 p12
6321 - Fraudulent Conveyances Part2 p1
6321 - Fraudulent Conveyances Part2 p2
6321 - Fraudulent Conveyances Part2 p3
6321 - Fraudulent Conveyances Part2 p4
6321 - Fraudulent Conveyances Part2 p5
6321 - Fraudulent Conveyances Part2 p6
6321 - Fraudulent Conveyances Part3 p1
6321 - Fraudulent Conveyances Part3 p2
6321 - Fraudulent Conveyances Part3 p3
6321 - Fraudulent Conveyances Part3 p4
6321 - Fraudulent Conveyances Part3 p5
6321 - Fraudulent Conveyances Part3 p6
6321 - Funds on Deposit p1
6321 - Funds on Deposit p2
6321 - Funds on Deposit p1
6321 - Homesteaded Property p1
6321 - Homesteaded Property p2
6321 - Homesteaded Property p3
6321 - Insurance p1
6321 - Insurance p2
6321 - Insurance p3
6321 - Insurance p4
6321 - Licenses 2 - p1
6321 - Licenses 2 - p2
6321 - Licenses 2 - p3
6321 - Legal Obligations
6321 - Partnerships p1
6321 - Partnerships p2
6321 - Partnership Property
6321 - Other State Created Exemptions
6321 - Property Rights of 3rd Parties p1
6321 - Property Rights of 3rd Parties p2
6321 - Property Rights of 3rd Parties p3
6321 - Prior Law p1
6321 - Prior Law p2
6321 - Property rights of a nondeclared spouse p1
6321 - Property rights of a nondeclared spouse p2
6321 - Property rights of a nondeclared spouse p3
6321 - Property rights of a nondeclared spouse p4
6321 - Property Seized During Arrest
6321 - Stolen Property
6321 - Rent
6321 - Stock Certificates
6321-Unperfected interests p1
6321-Unperfected interests p2
6321-Unperfected interests p3
6321-Unperfected interests p4
6321-Unperfected interests p5
6321-Tangible property in the taxpayer's possession
6321-Trusts for third parties p1
6321-Trusts for third parties p2
6321-Trusts p1
6321-Trusts p2
6321-Trusts p3
6321-Trusts p4
6321-Trusts p5
6321-Trusts p6
6321-Trusts p7
6321-Property transferred during divorce (2) p1
6321-Property transferred during divorce (2) p2
6321-Real property p1
6321-Real property p2
6321-Real property p3
6321-Real property p4
6321-Real property p5
6321-Real property p6
6321-Real property p7
6321-Real property p8
6321-Relinquishments and disclaimers
6332 - Annotations- Exclusiveness of Remedy
6332 - Annotations- Evidence of Debts
6332 - Annotations- Garnishment
6332 - Annotations- Levy and Demand
6332 - Annotations- Insurance Policy 1 p1
6332 - Annotations- Insurance Policy 1 p2
6332 - Annotations- Insurance Policy 1 p3
6332 - Annotations- Insurance Policy 2
6332 - Annotations- Interest and Penalties
6332 - Annotations- Leasehold Interest
Taxpayer's Property in Possession of Thrid Party p1
Taxpayer's Property in Possession of Thrid Party p2
Taxpayer's Property in Possession of Thrid Party p3
6322-Constitutionality
6322-Limitations p1
6322-Limitations p2
6322-Prior law
6322-Relation-back doctrine
6322-Release of liens
6322-State law
6322-Waiver
6322 - Nevada

 

Lien Processing

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5.12.6  Procedures for the Lien Processing

5.12.6.1  (10-01-2003)
Management and Responsibility

  1. Case Processing is responsible for:
    1. Processing and maintaining NFTLs generated by the system.
    2. Issuing other lien certificates generated by the system.

     

    1. Release
    2. Revocation
    3. Withdrawal

     

  2. Timely mailing all documents.

5.12.6.1.1  (10-01-2003)
Managing Lien Processing

  1. Managing Lien Processing encompasses many aspects.
    1. Reviewing lien documents for accuracy, for example, ensuring that a name, address and tax period information is present.
    2. Verify amounts using IDRS when the unpaid balance of assessment is low. Example: A NFTL is processed for $15.00 and there are no other balance due periods. You should research IDRS for the appropriate dollar amount. If after researching it is determined the dollar figure is correct, contact the manager of the requesting employee to verify that lien filing is appropriate.
    3. Ensuring that lien documents are timely processed.
    4. Responding to requests for lien documents.
    5. Establishing positive lines of communication with internal and external customers.
    6. Ensuring the release of NMF liens.

     

  2. Establish a lien quality review process.
    1. Is the taxpayer's name (first and last) present?
    2. Is there a city, state and zip code present?
    3. Is the recording information, i.e., county and state, present?
    4. Has the tax period information been added?
    5. Is there a total balance due at the bottom of Form 668(Y)?
    6. If a low dollar lien, was the amount verified on IDRS then with the requesting employee's manager.

     

  3. Once documents are printed, prior to mailing determine if the following actions were taken:
    1. Were office support vouchers attached?
    2. Were documents signed?
    3. Were document signatures legible and within the signature space?
    4. Were all documents accounted for?
    5. Had any documents been removed?
    6. Was appropriate documentation attached?
    7. Was the billing voucher annotated and documentation attached?
    8. Did all releases have recording information listed?
    9. Were two copies sent to those recording offices that require it?
    10. Were return envelopes attached when required?
    11. Were envelopes prepared for the correct county.
    12. Were all documents aligned with correct billing support voucher.

     

  4. Correct any obvious errors prior to mailing the NFTL to the recording office.

5.12.6.2  (10-01-2003)
Creating the Notice of Federal Tax Lien

  1. All Notices of Federal Tax Liens should be filed through the Automated Lien System (ALS).
  2. Follow instructions in the ALS User Guide to create the lien.
  3. Manually prepared NFTLs should be kept to a minimum.
    1. Employees preparing the NFTL will obtain the serial lien identification (SLID) number from the Lien Processing Unit.
    2. Lien Processing employees will complete the Form 668(Y) on the system prior to providing the SLID to the requesting employee. Completing the form ensures that the TC 582 and TC 360 are generated for input to master file. This also ensures generation of the Collection Due Process (CDP) notice.
    3. Follow up with the requesting employee to obtain recording information if it is not provided within 10 days.

     

5.12.6.2.1  (10-01-2003)
Creating the NFTL From Form 4844

  1. Generally liens are systemically created on ALS from ICS or ACS data. Employees in the walk-in, correspondence, and toll free areas do not have access to ALS.
  2. Use Form 4844 to prepare NFTLs for these employees.
    1. Review Form 4844 and/or the attached document to determine if the information necessary to prepare the NFTL has been provided.
    2. Verify that the name and telephone number of the contact person is provided. (This information is available for ACS in the ALS database. However, it is not available to the Lien Processing Unit in paper form).
    3. Contact the person requesting the NFTL if additional information is needed.
    4. Create the NFTL.

     

    Note:

    TXMODs are not required.

     

  3. The employee requesting the lien will provide the appropriate employee identification number and contact telephone number for their particular location. This information is not available in Lien Processing Units.
  4. The CDP notice will be generated from the information input for the lien.
  5. All follow up CDP actions, except processing undelivered mail, will be the responsibility of ACS Support.

5.12.6.2.2  (10-01-2003)
Correcting the NFTL

  1. The ALS database should always contain NFTL records that mirror information filed in recording offices.
  2. Use the options available on ALS to correct the NFTL. See the ALS User Guide for instructions.
  3. If the IDRS name control does not match the name control on ALS, correct the name control on ALS.
  4. Changes will not be made to any part of the document after it has been mailed for recordation without managerial approval.

5.12.6.2.3  (10-01-2003)
Amending the NFTL

  1. Recorded NFTLs can be amended to correct erroneous information contained on the filed NFTL.
  2. Amend the NFTL if:
    1. The name is incorrect (does not clearly identify the taxpayer to other creditors, i.e., Brian Johnson should be Brian Johnston.
    2. The assessment date is incorrect.
    3. The tax period is incorrect.
    4. The unpaid balance of assessment is incorrect, for example, the NFTL shows $3,000,000,000 and the actual assessment is $30,000.

     

  3. In some cases a new CDP will be generated.

5.12.6.2.4  (10-01-2003)
Mutual Collection Assistance Requests (MCAR)

  1. Certain tax treaties have clauses where our treaty partners can request assistance from the Service to collect taxes owed them by individuals residing in the United States. The mutual collection treaty partners are France, Sweden, Denmark, Canada and the Netherlands.
  2. All MCARs from treaty partners are received by the Director, Small Business/Self-Employed, Area 15 (International).

5.12.6.2.4.1  (10-01-2003)
Preparing Form 668(Y)(c) from MCARs

  1. The Lien Processing Unit will process MCAR liens at the request International.
    1. Use the format shown in Exhibit 5.12.3-5 as a guide to prepare Form 668(Y)(c), Notice of Federal Tax Lien.
    2. Use only the serial number provided by International.
    3. Use the Taxpayer Control Number (TCN) assigned to the MCAR assessment by International as the identifying number if the taxpayer identification number is not known.
    4. Use the Last day for Refiling collection statute date provided by the treaty partner as provided to you by International.

     

    Note:

    Do not use ALS to prepare MCAR liens.

     

  2. The NFTL will be filed in the appropriate recording office.
  3. Return a copy of the NFTL to International. Once the lien is recorded also provide the appropriate recording information.
  4. Do not request input of TC 582.
  5. Do not request input of TC 360, filing fees are not assessed against MCAR taxpayers.

5.12.6.2.4.2  (10-01-2003)
Refiling and Release of MCARs

  1. International will be responsible for determining whether to refile or release the NFTL.
  2. NFTLs for refiling and certificates of release will be:
    1. prepared by International and
    2. and forwarded to the appropriate Lien Processing Unit to complete the recording process.

     

  3. Do not input TC 582 for the refile or TC 583 if the NFTL is released.
  4. Do not input TC 360 for filing fees.

5.12.6.2.5  (10-01-2003)
Printing and Mailing the NFTL

  1. NFTLs will be printed within 5 calendar days of input to ALS.
  2. Once documents are printed they should be mailed the same day unless there is a delay in obtaining checks to pay recording fees.
  3. Mail Part 1 to the recording office,
  4. Mail Part 2 to the recording office, when required.
  5. Part 3 will be generated with the CDP notice and mailed to the taxpayer.

5.12.6.2.6  (10-01-2003)
Refiling the NFTL

  1. Refiling the NFTL maintains the Service's priority established by the original lien filing when the collection statute is extended.
  2. The Potential Refile Report must be worked monthly. The report will continue to build unless appropriate refiling actions are taken.
  3. Research IDRS to determine the status of the case.
  4. Route the appropriate information to the unit or employee responsible for the refile determination. If the case is in status 26 send to the field, 72 send to the bankruptcy unit, status 71 to the OIC Unit, status 22 to the Area ACS Liaison.
  5. Technical Services will make refile determinations for CNC and mandatory follow-up cases.
  6. Requests for refiles will be input through ALS.

5.12.6.2.7  (10-01-2003)
Out-of-Area Lien Filing

  1. Out-of-area NFTLs may be filed using ALS.
  2. Call the receiving area office to obtain the court identification number and the exact spelling of the recording office (including whether the input should be upper or lower case or initial caps).
  3. Upon receipt, but not later than 5 business days after, the NFTL will be input to ALS, printed and mailed.
  4. Employees using the SUN system will enter the zip code (in Create) where the property is located. ALS will display the corresponding filing jurisdiction.
  5. The NFTL will be created in the Lien Processing Unit where the property is located.
  6. The appropriate CDP notice will be generated and printed in the office original the NFTL filing request.

5.12.6.3  (10-01-2003)
Collection Due Process (RRA) Notices

  1. IRC 6320 requires that the Service provide taxpayers with lien collection due process appeal rights within 5 business days of the NFTL being filed.
  2. The CDP notice (L3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing), is created in the ALS database when the NFTL is printed.

5.12.6.3.1  (10-01-2003)
Mailing the CDP Notice

  1. Within 5 business days the notice must be mailed. (The third day after the NFTL is printed, the CDP notice can be printed and mailed.)
  2. Mail the CDP notice, certified mail, within 2 business days of being available to print.

    Note:

    The taxpayer's response time frame begins on the sixth day.

     

  3. All enclosures (Publications 1, 1450, 1660, Form 668Y(c), Form 12153) must be included.

5.12.6.3.2  (10-01-2003)
Corrected NFTL Generates New L3172

  1. IRC 6320 requires that taxpayers be provided with one appeal opportunity per tax period.
  2. ALS generates a new notice (L3172) when the taxpayer's name, assessment or tax period is corrected. The notice will have a new 30 day response due date.
  3. The 5 business day mail requirement applies.
  4. Send the notice certified mail.

5.12.6.3.3  (10-01-2003)
Undelivered Mail

  1. Undelivered mail will be worked within 5 days of receipt.
  2. Check IDRS to make sure the address is correct.
    If the address is Then enter the appropriate information in the NOTADD option of ALS and
    the last known address note the history with 'Verified IDRS address.' on ALS.
    not the last known address issue a new notice.

     

  3. If the lien is assigned to a revenue officer, forward the returned envelope when the above actions have been completed for association with the case file.
  4. In cases where a new address is found, use the ALS NOTADD option to document the undelivered mail and to ensure that the new L3172 is created.
  5. Notices will not be returned to ACS.
    1. Enter the appropriate information in the NOTADD option of ALS.
    2. Verify the IDRS address.
    3. Issue a new notice if a new address is found on IDRS.
    4. If a new address is not found, note the ALS history with " Verified IDRS address" and destroy the notice.

     

5.12.6.3.4  (10-01-2003)
Creating Notices for the Power of Attorney (POA)/Taxpayer Representative and Co-obligors

  1. ALS can be used to create CDP notices for the taxpayer's representative, POA and Co-obligors.
  2. Employees responsible for making lien filing determinations are responsible for ensuring that the appropriate persons receive a copy of the CDP notice and all attachments.
  3. Employees, other than those in ACS, must fax the name and address to the Lien Processing Unit. Use the faxed information to prepare the CDP notice for co-obligors, i.e., ex-spouse, spouse living at a different address, and partners in a partnership, power of attorney and taxpayer's representatives.
  4. Upon receipt, the information will be added to ALS. Notices received in the Lien Processing prior to the taxpayer's CDP notice being mailed, will be mailed the same day.
  5. ACS POA information is manually added to ALS from information downloaded from ACS Support. If this method is not used, the information must be faxed.
  6. In no instance will the notice be mailed later than 5 days after receipt of the POA/taxpayer's representative's or co-obligor's information.
  7. Note the date the notice was mailed in the ALS history. ALS systemically documents when the information is entered.

5.12.6.3.5  (10-01-2003)
Other CDP Notices

  1. There are three other notices issued that relate to collection due process. These notices explain why there is no entitlement to CDP appeal rights.
    1. L3171, Notice of Additional Federal Tax Lien Filing - issued when a lien has been filed in another location and the taxpayer has already received appeal rights. ALS systemically generates this notice.
    2. L3177, Notice of Federal Tax Lien Filing - Nominees or Alter-Ego - issued in nominee and alter-ego situations. Employees filing the NFTL must ensure that the taxpayer receives a L3172. ALS does not generate either notice.
    3. L3527, Notice of Federal Tax Lien Filing - Child Support Obligation - issued when a lien is filed on a taxpayer with outstanding child support obligations. ALS does not generate this notice.

     

  2. The employee requesting the NFTL is responsible for ensuring that the appropriate notice is prepared and mailed.
  3. There is no requirement to send these letters certified mail.
  4. There is no 5 business day mail requirement. However, if the notice is prepared in the Lien Processing Unit, it will be printed and mailed the same day.

5.12.6.3.6  (10-01-2003)
Maintaining Postal Form 3877

  1. The CDP notice must be sent either certified or registered mail. Lien CDP notices are sent certified mail.
  2. ALS creates Postal Form 3877 when the L3172 is printed. The form lists the SLID, taxpayer name and address, certified mail cost, and certified mail number for each notice being mailed.
  3. Legible receipted (stamped by the U.S. Post Office) copies of Form 3877 are maintained in the ALS Unit.
  4. Retain forms in date order by year. Registers and receipts for outgoing certified mail may be destroyed at the 10 years after the end of the processing year. DO NOT ARCHIVE FILES.
  5. In cases where the post office certified mail label is used, retain the stamped receipted copy. File it in the same manner as Form 3877.

5.12.6.4  (10-01-2003)
Processing Certificates

  1. ALS generates certificates related to the NFTL.
    1. Form 668Z, Certificate of Release
    2. Form 12474, Certificate of Revocation
    3. Form 12474A, Certificate of Revocation of Self-Releasing NFTL
    4. Form 10916(c), Certificate of Withdrawal

     

5.12.6.4.1  (10-01-2003)
Certificate of Release

  1. IRC 6325 requires that a certificate of release (Form 668-Z) be issued within 30 days of the tax liability being satisfied.
  2. Generally, the certificate of release is systemically generated from data pasted to the ALS from masterfile. In some cases, the release can be requested manually. Examples of these are:
    1. taxpayer paying with certified funds
    2. pending property transactions (the certificate is provided upon receipt of payment)
    3. liability discharged in bankruptcy
    4. OIC offered amount paid

     

  3. Requests for releases may be received by fax if contact has been made with the taxpayer by phone or in-person and the ALS history is documented with the date of contact and it is noted that the taxpayer wishes to send a request for release by fax.
  4. Provide taxpayer's with a certificate of release in cases where the liability is satisfied or the taxpayer is paying with certified funds. Do not send the taxpayer to the recording office to see if a copy is on file or to obtain a copy. See IRM 5.12.2 for detailed guidance.
  5. Releases should be printed and mailed daily. Normally very little time remains on the 30-day period when releases are systemically generated.
  6. The Lien Processing Unit will retain a dated copy of the billing voucher that lists any releases. The billing voucher will be date stamped by either the IRS mailroom or the post office when these documents leave your immediate control.
  7. Retain the vouchers in date order by year for 2 years.

5.12.6.4.1.1  (10-01-2003)
Partial Release

  1. There is no provision in the Code or Regulations for the issuance of a partial release. However, circumstances sometimes dictate that a partial release of the NFTL is necessary. Some partial releases will be systemically generated.
  2. When you receive a request for a partial release, the requester must provide you with the appropriate entity, TIN (make sure this is the TIN of the person no longer liable for the tax liability), tax type, tax period, unpaid balance of assessment, filing location, etc., to complete the certificate of release.
  3. Obtain the reason the partial release is being requested. For example, there is a joint account and only one of the taxpayer's requested an offer in compromise and the offer was accepted. The agreed amount has been paid and the tax examiner is requesting release of the NFTL.
  4. A partial release may be generated when there are multiple tax periods and the taxpayer requests a release for a specific tax period.
  5. The partial lien release should be prepared using ALS. The ALS allows the user to select a paragraph, clearly identifying the non-liable taxpayer, to be printed on the face of Form 668(Z).
  6. Do not post TC 583 to the still liable taxpayer's masterfile account.

5.12.6.4.2  (10-01-2003)
Certificate of Revocation

  1. The certificate of revocation is issued when a lien has been released in error. There are two versions of the certificate of revocation.
    1. Form 12474 - issued to revoke a release that was requested in error.
    2. Form 12474A - issued when a NFTL was not refiled timely and the collection statute expiration date expired.

     

  2. Revocations are usually requested by Revenue Officers or Technical Services Advisor/Reviewers. In some instances, you may receive these requests from Bankruptcy Specialists.
  3. Generate the certificate of revocation when it appears in the manager's queue.
  4. Instruct the recorder to record the revocation prior to recording the NFTL.
  5. A new NFTL must be filed to reestablish the government's priority.

5.12.6.4.3  (10-01-2003)
Certificate of Withdrawal

  1. The Form 10916(c), Certificate of Withdrawal is issued when:
    1. an administrative error has occurred.
    2. the taxpayer entered into an installment agreement and the agreement does not provide for the lien filing.
    3. withdrawal will facilitate collection of the tax liability, and
    4. withdrawal is in the best interest of the government and the taxpayer.

     

  2. See Delegation Order 5.4 to determine who has the authority to approve withdrawal of the NFTL.
  3. The certificate of withdrawal is normally signed by a Technical Services or Insolvency manager, however, documents generated by ALS may be signed by the Lien Processing Unit, Case Processing Manager.

5.12.6.4.3.1  (10-01-2003)
Partial Withdrawal

  1. The Internal Revenue Code nor the Internal Revenue Regulations have provisions for the issuance of a partial withdrawal. However, circumstances sometimes dictate that a partial withdrawal is necessary.
  2. When you receive a request for a partial withdrawal, the requestor must provide you with the appropriate entity, TIN (make sure this is the TIN of the person no longer liable for the tax liability), tax type, tax period, unpaid balance of assessment, filing location, etc., to complete the certificate of certificate of withdrawal.
  3. The Service will bear the cost of the filing fee.
  4. Use the information provided by the employee making the withdrawal determination to complete the form.
  5. Clearly identify on the face of the document which taxpayer (if a joint account) still responsible for the liability.

5.12.6.5  (10-01-2003)
Authority to Sign and Generate ALS Documents

  1. Lien Processing Unit Managers in Case Processing are authorized to sign, generate and print certificates generated by ALS for employees authorized under Delegation Order 5.4.
  2. Lien Processing Unit Managers or their designees are authorized to make lien release determinations and to issue certificates of release resulting from lien payoffs initiated by their employees.

5.12.6.6  (10-01-2003)
Recording Fees

  1. ALS Units are encouraged to arrange with local officials for the periodic billing of recording fees, preferably, on a monthly basis. However, the Service cannot dictate their method of payment.
  2. Encourage recording offices to submit a cover invoice and to assign an invoice number.
  3. Within 5 days of receipt of the voucher:
    1. Date stamp the voucher when it is received in your office.
    2. Verify the accuracy of the statement (correct number of documents listed, amount on statement matches our records, etc.)
    3. Approve for payment.

     

  4. Forward the voucher to the Finance Center in Beckley, WV for payment.

5.12.6.6.1  (10-01-2003)
Billing Methods

  1. Three methods of payment have been established for paying fees.
  2. Direct Billing - the direct billing estimate must be annotated on the statement (e.g., ALS printout, vendor invoice, etc.). Bulk estimates have been established, no RTS entry is needed.
  3. Imprest Fund - has been established in several offices to provide for pre-payment when required by local officials.
  4. Payment Purchase Card - annotate the statement with the bulk estimate document number. Bulk estimates have been established, no RTS entry is needed.
  5. Annotate the appropriate finance identification number for method of payment. These numbers change each fiscal year and can be obtained from each local SB/SE budget office. Refer to the Management and Finance guidelines on the SB/SE website for local budget information contacts.

5.12.6.7  (10-01-2003)
Disclosure of Lien Information

  1. Delegation Order 5.4 lists the employees authorized to disclose lien payoff information.
  2. Any person other than the taxpayer or their designee must submit a written request stating the reason the information is needed and must identify the NFTL in question.

5.12.6.7.1  (10-01-2003)
Disclosure to Escrow and Title Companies

  1. When Form 8821, Tax Information Authorization, is provided authorized employees may disclose the amount of the outstanding amount secured by the NFTL to escrow companies, title companies, and financial institutions.
  2. Form 8821 must be completed before the taxpayer signs and must specify the specific piece of property for sale.
  3. Taxpayers may authorize disclosure telephonically. Verify the taxpayer's identity. See IRM 5.12.2 for additional guidance.
  4. Do not disclose tax periods not subject to the NFTL without obtaining the taxpayer's authorization.

5.12.6.7.2  (10-01-2003)
Lien Payoffs

  1. Obtain a copy of the taxpayer's authorization. If authorization is verbal annotate the file.
  2. If a requester can establish a need to know and the taxpayer is not available to sign the authorization form, seek guidance from Area Counsel.
  3. If the requestor is not the taxpayer or a party who will be obtaining an interest in the property in question, follow the procedures below but also refer to IRM 5.12.2, for additional guidance.
  4. Compute the lien payoff amount using established procedures. Based on the expected closing date (if a property sale or proposed contract date) provided in the request, include any statutory additions using COMPA and INTST for periods on the NFTL.
  5. Do not project amounts beyond the date entered on the payoff request.
  6. Complete Letter 3640 (Exhibit 5.12.6-1) to provide lien information to the taxpayer or Letter 3641 (Exhibit 5.12.6-2) to provide information to authorized third parties.

5.12.6.7.2.1  (10-01-2003)
Case Files

  1. Create a case file when you receive a request for a lien payoff.
  2. Case files must contain copies of the following information.
    1. Taxpayer's authorization (either Form 8821 or copy of annotation from case file).
    2. The NFTL that pertains to the request.
    3. Computations
    4. All work papers.

     

  3. Forward the case file to the manager for review and signature.

5.12.6.7.2.2  (10-01-2003)
Reviewing the Case File

  1. Managers or their designee will review the case file prior to issuing the payoff letter to:
    1. Verify that a request was made.
    2. Verify the accuracy of the computation.
    3. Ensure that the standardized letter is completed.
    4. Ensure tax periods on the NFTL and standardized letter are identical.
    5. Ensure copies of the taxpayer's authorization, payoff request, NFTLs, computations and work papers are in the file.

     

  2. Prior to issuing the payoff letter, managers will also ensure that the Service has complied with the taxpayer's authorization or the documentation required under IRC 6103(k)(2).

5.12.6.7.2.3  (10-01-2003)
Retaining Case Files

  1. Case files will be retained for every lien payoff request received.
  2. Retain case files for two years.
  3. Files will be retained in alphabetical order by taxpayer name by year.

5.12.6.8  (10-01-2003)
Designated Payment Code

  1. A designated payment code (DPC) is mandatory on all collection initiated posting vouchers for transaction codes 640, 670, 680, 690, 693, and 700.
  2. Use DPC 07 when applying payments secured for the release of a NFTL.

5.12.6.9  (10-01-2003)
Reports

  1. A number of reports are created by ALS that directly relate to protecting the government's interest, protecting taxpayer rights, maintaining the Service's priority.
    1. Satisfied Module Reject Report - this report provides the SLID of any lien that did not match a lien found in the ALS database, had restricted interest or penalty, or had a bad check indicator on ALS. This report must be worked weekly to ensure that certificates of release are issued for tax liabilities that have been paid.
    2. ACS/ICS Reject Report - provides a list of names that rejected because incorrect information was provided. This report should be worked daily to ensure the government's interest is protected.
    3. Lost Lien Report - provides a list of liens created in ALS with no recording data. This report should be generated and worked (at least quarterly) based on the time it takes recording offices to provide information.
    4. Potential Refile Report - provides a list of all liens within the refile period. This report should be run and worked quarterly. Working this report timely ensures that the government's priority is maintained.
    5. NMF 360 Report - provides a list of NMF modules that require manual input of TC 360. This report should be worked weekly.
    6. GUF - Nullified Distribution Report - provides a list of TC 582 and TC 583 that did not post to master file. This report should be worked within 5 days so that the lien filed indicator can be set on master file.

     

  2. Instructions are provided in the ALS User Guide for resolving these reports.

5.12.6.9.1  (10-01-2003)
Satisfied Module (SAT MOD) Reject Report

  1. The SAT MOD Reject Report will display one of the following reason codes:
    1. Restricted Interest - open lien on ALS and restricted interest indicator exists on master file.
    2. Restricted Penalty - open lien on ALS and restricted failure to pay indicator exists on master file.
    3. Bad Check on Entity - open lien on ALS with an ALS bad check indicator.
    4. No Ent/Per-Stat 12 - master file open lien indicator (TC 582) with no match to ALS with MF TIN, MFT and period.
    5. No Ent/Per-TC 971 - master file open lien indicator (TC 582) with no match to ALS with MF TIN, MFT and period and open TC 971 action codes 100, 101 and 104.

     

  2. Follow up actions are required on all items. Items appearing on the report will continue to appear until the reject is resolved.
  3. Use the ALS Rsat utility to input resolved rejects. Input one of the following values so that the item can drop from the report.
    1. O = open module is not satisfied and lien cannot be released.
    2. S= satisfied - module is satisfied.
    3. N = no action - module is in STAT 12 but the lien cannot be released due to unassessed restricted interest or failure to pay penalty is due.

     

  4. Research master file to determine the taxpayer's location.
  5. Refer to the reports chapter of the ALS User Guide for detailed instructions.

5.12.6.9.2  (10-01-2003)
ACS/ICS Reject Report

  1. The ACS/ICS contains four types of information.
    1. acs_poa - lists lien records from ACS that contains POA data.
    2. acs_rejects - lists lien records that contain invalid data.
    3. acs_dups - lists duplicate liens not loaded.
    4. acs_status - contains log of liens by SLID that successfully loaded and liens that were rejected.
    5. missing_POD - Lists ROs who are not in the ALS RO table or ROs who are in the RO table and the PODKEY = 1.

     

  2. Generate a copy of the L3172 for any POA found in the list. There is no need to redact information.
  3. Rejects are usually caused because the ROs number is not found in the table; filing local is not found in the appropriate table, or the zip code is unknown. Correct the appropriate field to resolve the error.
  4. Create a new lien once the correct information is added to ALS.
  5. For additional guidance refer to the ALS User Guide.

5.12.6.9.3  (10-01-2003)
Lost Lien Report

  1. This report contains a list of liens where there is no recording information.
  2. Work this report at least quarterly.
  3. Technicians should input any lien recordation information already received prior to running the report.
  4. Locate the recording information using of the options below:
    1. telephone call to the courthouse;
    2. mail-in request;
    3. ChoicePoint; or,
    4. revenue officer visit to the courthouse.

     

  5. Input the recordation information, if obtained.
  6. If the lien was not received by the recording official determine if the liability is outstanding and if applicable generate another copy of the lien and forward to the appropriate recording office.

5.12.6.9.4  (10-01-2003)
Potential Refile Report

  1. The Potential Refile Report produces a list of all liens where the collection expiration date has been extended or suspended. The report displays lien periods that are within the one year period ending 30 days after the collection statute expires. All liens that are within that period should be refiled at the same time.
  2. Periods that will expire within 90 days are flagged.
  3. Check the status of the account. If the case is in status 26 send to the field function, status 72 send to Insolvency, status 71 send to OIC, status 22 send to the Area ACS Liaison. All other statuses send to Technical Services for refile determination.
  4. Contact the assigned employee if the account is in status 26.
  5. Using ALS, refile the liens as requested.

5.12.6.9.5  (10-01-2003)
NMF 360 Unpostable Report

  1. This report identifies the reason the TC 360 did not post.
  2. Input the correct information.
  3. Forward a request to the appropriate Campus for reinput of the TC 360.

5.12.6.9.6  (10-01-2003)
GUF - Nullified Distribution Report

  1. This report identifies TC 582 and TC 583 that did not post to the master file.
  2. Most unpostables are the result of TIN/name control mismatch.
  3. Check ALS to determine if the information on the unpostable record matches the ALS lien record.
  4. If the record does not match the ALS record, correct the appropriate field and reinput.

    Note:

    In some cases you will be required to create a "Not to be Filed NFTL" to link the correct information to the incorrect information.

     

  5. If the record matches, check IDRS and/or master file to determine what the correct information is. Correct the ALS information accordingly and reinput the lien.
  6. Close the IDRS control base.

5.12.6.10  (10-01-2003)
Maintaining ALS

  1. Case Processing is responsible for:
    1. administration of the ALS database.
    2. maintaining a file of recorded NFTLs and other related documents.
    3. providing access to the database for designated employees based on the employee's manager's approval of Form 5081. Any permission concerns should be discussed with the manager.
    4. Inputting court recording data.
 

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