Memo Supplements Guidance on OIC Procedures During Pandemic

I. Cases under which the Temporary Relief for Taxpayers — Suspension of Offer Activities During the COVID-19 Pandemic allows processing of NFTL (jeopardy situation exists; acceptance cases > $50K with deferred payment; imminent NFTL refile deadline)

Actions Needed:

• For new NFTL or NFTL in new locations, follow the instructions in SCOIC (Field and COIC) Processing Requests for NFTL and Letter 3172 Before July 15, 2020, below.

• For NFTL refiles, submit Form 12636 to *SBSE CLO FORT. In the email, specify the refile deadline date. Because systemic letters are not being generated by ALS, the requestor will notify the taxpayer of the filing by sending an ALS facsimile of the NFTL refile.

II. Forms 12636 that were prepared prior to the March 25, 2020 announcement regarding NFTL suspension.

Actions Needed:

• At the end of the suspension period, the Forms 12636 should be returned to the OE/OS who prepared the request or the group tax examiner to complete the actions below:

  • Check IDRS to verify accuracy of information on Form 12636 (address, periods, balances due).

  • Check the status of the case for impediments to filing, including but not limited to stat 72 (litigation); stat 60/61/63 (in I.A. status); or stat 26 (assigned to Revenue Officer). See below for stat 22. If a NFTL cannot be filed, update the case history to explain the change in course in action (NFTL cannot be filed due to . . .). Mark VOID on Form 12636 and submit the file for archiving.

  • If the case is in status 22, check AMS history to determine if ACS is actively working the case. If so, the NFTL should not be filed. If the history shows there is no activity, process the Form 12636.

  • If the determination is made not to process the Form 12636, the manager must document approval in ICS and AOIC (if FOIC) or AOIC (if COIC).

III. CDP cases where the offer is being recommended for rejection.

Actions Needed:

• Document that the NFTL filing is currently prohibited based on the interim guidance. Attempt to contact the taxpayer to advise that the NFTL determination is being withheld based on the current guidance and that you are transferring the case to Appeals. If their case is not resolved, the NFTL determination will be made by Collection in the future.

IV. Cases where the taxpayer has consented to the closure (i.e. voluntary withdrawals or the taxpayer has requested we proceed with rejection so the case can be heard by Appeals).

Actions Needed:

• Review the taxpayer's circumstances to determine if non-filing of the NFTL would be detrimental to the government's interest. For example, the taxpayer has substantial equity in real property. If a NFTL is deemed necessary, see the next bullet. For all other non-acceptance cases being closed prior to July 15, document the case history that the determination is to not file the NFTL based on the COVID-19 collection suspension guidance.

• If filing is warranted, advise the taxpayer the NFTL will be filed after July 15, 2020. Follow IRM 5.8.4.13 to advise of appeal and CDP rights. The manager will update AOIC with the case status and create a follow up action to file the NFTL.

  • At the end of the suspension period, check IDRS to verify accuracy of information on Form 12636 (address, periods, balances due).

  • Check the status of the case for impediments to filing, including but not limited to stat 72 (litigation); stat 60/61/63 (in I.A. status); or stat 26 (assigned to Revenue Officer). See below for status 22. If the NFTL cannot be filed, update the case history to explain the change in course in action (NFTL cannot be filed due to . . .). Mark VOID on the Form 12636.

  • If case is in stat 22, check AMS history to determine if ACS is actively working the case. If so, a NFTL should not be filed. If the history shows there is no activity, process the Form 12636.

  • If the determination is made not to process the Form 12636, the manager must document approval in ICS and AOIC (if FOIC) or AOIC (if COIC).

  • Submit the file for archiving or to Appeals as appropriate.

V. Cases where the determination has been finalized but where the taxpayer has NOT consented to closure (mandatory withdrawals, returns, and rejections) and the closing action is being withheld until after July 15.

Actions Needed:

• During contact with the taxpayer, ensure they are aware of your intention to process the NFTL request after July 15. Follow IRM 5.8.4.13 to advise of appeal and CDP rights.

• At the end of the suspension period, research IDRS and review the history and casefile for correspondence, payments or any new information as indicated in the Q&A listed on OIC SharePoint underDisaster-COVID-19.

• If no impediments are found, COIC and FOIC must date and process the Form 12636 by e-faxing or e-mailing to CLO.

• Document the history.

• If the determination is made not to process the Form 12636, the manager must document approval in ICS and AOIC (if FOIC) or AOIC (if COIC). Mark VOID on the Form 12636 and submit the file for processing.

1. Secure approval of the Territory Manager (FOIC) or Operation Manager(COIC). Verification of the approval must accompany the request for NFTL filing.

2. Complete Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien.

3. Send the request to the FOIC contact. Forward the approval email from the second level manager and attach the completed Form 12636. In the body of the e-mail, include your contact information as shown below. This will be included in the Letter 3172 sent to the taxpayer.

4. The FOIC contact forwards the Form 12636 to the Centralized Lien Operation (CLO) Field Office Resource Team (FORT) via secure email at *SBSE CLO FORT.

5. The FORT inputs the information to the Automated Lien System (ALS). The FORT will print the NFTL and mail it to the recording office as part of CLO's batch processing.

NOTE: Due to restricted access to the Campus, CLO is currently printing and mailing documents on a weekly basis.

6. The IRS must notify the taxpayer of the NFTL within five days of the NFTL filing. The letter used to notify the taxpayer depends on whether an NFTL was filed previously for all the tax period assessments on the new NFTL and the taxpayer was provided CDP rights for the previous filing.

• Letter 3172, Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320, notifies the taxpayer of CDP rights when an NFTL is first filed on a tax period. This letter must be sent via certified mail.

• Letter 3171, Notice of Federal Tax Lien Additional Filing, notifies the taxpayer when another NFTL is filed for the same tax periods for which a Letter 3172 was previously issued. This letter is sent via regular mail.

• Letter 3262, Notice of Federal Tax Lien Filing — Power of Attorney, or Letter 3271, Notice of Federal Tax Lien Additional Filing — Power of Attorney, informs the taxpayer's POA of the NFTL filing. These letters are sent via regular mail

7. One week after forwarding the NFTL request, the FOIC contact manually prepares the applicable letter to the taxpayer, and any authorized POA, showing the requestor's contact information. The letters can be prepared using the ICS blank templates.

8. The FOIC contact mails the Letter 3172 (via certified mail) or Letter 3171 (via regular mail) with the NFTL facsimile copy from ALS and other referenced enclosures to the taxpayer(s) to advise of the NFTL filing.

9. If there is an authorized POA, the FOIC contact manually prepares the appropriate letter (Letter 3262 or 3271) and sends it via regular mail with a copy of the NFTL facsimile and the Letter 3172 or 3171 sent to the taxpayer. Do not enclose publications with the POA letters.

10. When Letter 3172 is mailed, the FOIC contact prepares a Form 4844 (via ICS TC 971-REQ for Term. Action; Undelivered Lien Actions) for input of a TC 971 AC 252 to show the letter was mailed. See IRM 5.12.6.3.5 for further details. Send to CCP and monitor for input.

11. If the Letter 3172 is returned by the postal service, request input of the appropriate TC 971 action code to record the delivery results (undelivered/unclaimed/refused). See IRM 5.12.6.3.18, Inputting TC 971 for Notice Status.

12. Any CDP hearing requests will be the responsibility of the requestor of the NFTL.