Temporary Guidance on Collection Work Is Extended

Expiration Date: 9/30/2020
Affected IRMs: 5.1.10; 5.1.12; 5.9.5; 5.9.17; 5.12.2; 5.14.1; 5.15.1; 5.16.1

Date: August 25, 2020

MEMORANDUM FOR
ALL FIELD COLLECTION AND SPECIALTY COLLECTION INSOLVENCY EMPLOYEES

FROM:
Ronald Takakjy, Acting Director, Collection Policy
Small Business/Self Employed Division

SUBJECT:
Extending the Deviation to Field and Insolvency Procedures During the COVID-19 Pandemic.

Background

On July 16, 2020, the Acting Director, Collection Policy issued an interim guidance memo titled Deviation to Field and Insolvency Procedures During the COVID-19 Pandemic (Control Number SBSE-05-0720-0055) to provide a deviation and temporary guidance on taxpayer contact and Notices of Federal Tax Lien procedures for Field Collection and Specialty Collection – Insolvency. The purpose of this memorandum is to extend the deviation and temporary guidance provided in that interim guidance memo to September 30, 2020.

Taxpayer Contact

Face-to-face public contact/field activities will only occur in exceptional cases, as described below. They will not be routine or regularly occurring activities and will be voluntary on the part of the employee. Revenue Officers (ROs) may conduct face-to-face contacts and other field activities with the taxpayer, the taxpayer's authorized representative or other members of the public on a case-by-case basis and only when authorized. Face-to-face contact requires Territory Manager approval and is subject to the guidelines in the Deputy Commissioner memo dated July 6, 2020.

Face-to-face field contact should only be authorized where:

(1) there are no effective alternatives to face-to-face contact, and the failure to act poses a risk of permanent loss to the government, such as the expiration of a statute, assets being placed permanently beyond government reach, or continued pyramiding of employment tax liabilities; or

(2) the taxpayer or representative has requested face-to-face contact and the RO and manager agree that face to face contact would advance the progress of the case.

Note: Document all decisions to make face-to-face contact, public/field activities and discussions with management in the ICS history.

In all instances of public contact, employees are expected to wear masks or other face coverings, practice social distancing, and adhere to CDC guidelines (handwashing, etc.) to guard against possible exposure to or spread of COVID-19. Where possible, consider conducting the meeting with the taxpayer in an IRS facility (such as Taxpayer Assistance Centers) equipped with plexi-glass barriers.

Initial Contact

In most cases, effective initial contact requires the RO to attempt to make actual contact with the taxpayer or taxpayer's representative in the field per IRM 5.1.10, Field Collecting Procedures, Taxpayer Contacts. This requirement continues to be waived. However, during the pandemic soft contact procedures, which includes the use of Letter 725, Meeting Scheduled with Taxpayer, and telephonic interviews, will be utilized in lieu of face-to-face interviews except for those cases that have exigent circumstances (i.e. jeopardy, statute issues, egregious employment tax cases, etc.) and other priority field work in Field Collection Operations, Interim Guidance for COVID-19 Field Work (See Attachment 2 for Soft Contact procedures to be followed during the deviation period).

Note — Areas may be subject to a Federal, State, or local government quarantine or isolation order related to COVID-19. In this case, no face-to-face contact with taxpayers, POAs, or third parties is permitted.

Notice of Federal Tax Lien (NFTL) Filings and Filing Determinations The suspension of NFTL filing determinations and filing new NFTLs (except for exigent circumstances) will continue through September 30, 2020, with certain modifications as described in this memorandum.

NFTL Filing Determinations

Generally, employees should extend NFTL determination deadlines beyond September 30, 2020, for their cases.

When closing a case as an installment agreement, currently not collectible, or discharged or dismissed in a bankruptcy case, employees are not required to make a NFTL filing determination. Employees should document the case history that the NFTL filing determination was not made per the COVID-19 collection suspension guidance.

In very limited circumstances when closing a case, employees may hold the case in their inventory to file the NFTL after the end of the suspension period. This should only be done if the investigation shows it is critical to protect the government's interest. If the case will remain open in their inventory, the employee should create a follow up to file the NFTL after the suspension period. Employees should secure approval from their group manager to hold the case and document the approval in the case history.

Requesting and Filing NFTLs

Generally, employees should not request or file new NFTLs during the suspension period unless exigent circumstances exist. An exigent circumstance involves the loss of opportunity for the government to collect taxes due, such as the taxpayer placing assets beyond the reach of the government.

In exigent circumstances, Field Collection employees may request or file new NFTLs after securing Territory Manager approval. Specialty Collection-Insolvency employees may request NFTLs after securing approval from the Director, Specialty Collection-Insolvency.

Employees should follow the guidance attached to this memorandum to request a NFTL. Based on the circumstances and the status of the recording office, Field Collection employees may hand-carry the NFTL or lien document to the recording office following the guidance in IRM 5.12.7.10.5, which includes the employee paying any associated filing fee.

Filing Other Lien Documents

Employees may request NFTL Refiles following standard IRM procedures (e.g., secure email Form 12636 or a manually prepared Form 668-F to *SBSE CLO Liens Team 301 or, for authorized employees, input the refile directly). Request the refile with sufficient time for the Centralized Lien Operation (CLO) to process the document and for it to be delivered to the recording office before the refile deadline. If there is insufficient time (generally less than 30 days), consider filing the document in another manner.

Employees may request Revocations of erroneous lien releases by manually preparing Form 12474, Revocation of Release of Federal Tax Lien, and submitting it to the FORT for filing. However, the NFTL that follows the revocation is subject to the restrictions on new NFTL filings as described in this memorandum.

Employees may request other lien documents, as needed, through CLO following standard IRM procedures. CLO will print and file all lien documents on a regular basis.

Contacts

Employees should ask their management chain for guidance as to any issues not specifically addressed in this memo. Management officials may contact the appropriate Collection Policy office.

• Liens: Debbie Harriott, Program Manager; Kyle Romick, Sr. Program Analyst

• Insolvency: Tiffany Lentz, Program Manager; Maria Valerio, Sr. Program Analyst

• Installment Agreements: Eric Slayback, Program Manager

• Currently Not Collectible: Eric Slayback, Program Manager

• Taxpayer Contacts: Diana Estey, Program Manager; Cynthia Cooper, Sr. Program Analyst

Attachments (2)

Distribution: IRS.gov (http://www.IRS.gov)
Director Headquarters Collection — Quality and Technical Support

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Attachment 1 SBSE-05-0820-0069

Requesting Notices of Federal Tax Lien during the COVID-19 Suspension Period

New NFTLs should only be requested for EXIGENT CIRCUMSTANCES and MUST BE APPROVED by the Territory Manager (Field Collection) or Director (Specialty Collection — Insolvency). After securing approval, take the following actions:

1. Complete Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien, or manually prepare Form 668(Y), Notice of Federal Tax Lien. See IRM 5.12.7.3.2 and IRM 5.12.7.4 for further details.

REMINDER: Do NOT request the NFTL electronically through ICS or ALS.

2. Send the Form 12636 or Form 668(Y) to the Centralized Lien Operation (CLO) Field Office Resource Team (FORT) at *SBSE CLO FORT via secured email with the email or other documentation showing the appropriate management official approved the filing.

NOTE: CLO may reject requests that do not include documentation of the approval.

3. CLO inputs the information to the Automated Lien System (ALS). CLO will print the NFTL and mail it to the recording office as part of their regular batch processing.

Exception: For SPECIAL CONDITION NFTLs, take the following actions:

1. Follow IRM 5.12.7.6 procedures for securing Counsel's concurrence with the Special Condition NFTL.

2. After Counsel concurs with the Special Condition NFTL, secure the approval of the Territory Manager (Field Collection) for the exigent filing of the NFTL.

NOTE: If exigent circumstances do not exist or it is not necessary to file the NFTL before the end of the COVID-19 compliance suspension period, hold further processing until after the suspension period ends.

3. Manually prepare the Special Condition NFTL following the procedures in IRM 5.12.7.6.5.3.

4. Send the Special Condition NFTL to the CLO FORT via secure email to *SBSE CLO FORT. With the document, include the email or other documentation showing the approval of the filing.

5. The FORT reviews the NFTL and inputs the information into ALS. The FORT will print the NFTL and mail it to the recording office as part of CLO's batch processing.

6. Follow the procedures in IRM 5.12.7.6.6 to manually prepare the appropriate letters to advise the taxpayer(s) and the third party of the NFTL filing.

Attachment 2 SBSE-05-0820-0069

Note — In exigent circumstances, when there are no effective alternatives to face-to-face contact, and the failure to act poses a risk of permanent loss to the government (such as the expiration of a statute, assets being placed permanently beyond government reach, or continued pyramiding of employment tax liabilities), taxpayer agreement for face to face contact is not required. Such contact will be voluntary on the part of the employee and Territory Manager approval must be secured and documented in the case history prior to making the face to face conduct.

Note — If the case does not meet exception criteria, continue to use online and internal resources to the extent possible to complete required case research actions and asset evaluation when in-person options are unavailable. Document the case history about decisions to proceed with case closings when any research is impossible due to the COVID-19 pandemic and there is no indication through other research that in-person research is essential to protect the government's interest