Appeals Won't Issue Closing Letters in Some Circumstances

Expiration Date: 5/24/2021
Affected IRM: 8.7.6

Date: May 21, 2020

MEMORANDUM FOR
APPEALS EMPLOYEES

FROM:
Steven M. Martin
Director, Case and Operations Support

SUBJECT:
Reissuance of Interim Guidance on Issuing Closing Letters on Collection Due Process and Equivalent Hearing Cases with an Open Bankruptcy Petition

This memorandum reissues interim guidance AP-08-0518-0010, Issuing Closing Letters on Collection Due Process and Equivalent Hearing Cases with an Open Bankruptcy Petition, dated May 24, 2018, providing guidance on working Collection Due Process and Equivalent Hearing (CDP/EH) cases with an open bankruptcy petition. Please ensure that this information is distributed to all affected Appeals employees.

Purpose

The purpose of this interim guidance is to discontinue the process of issuing closing letters for CDP/EH cases when the bankruptcy automatic stay is in effect.

Background/Source(s) of Authority

Current Appeals guidance on this subject is outdated and the associated procedures shall be removed from Internal Revenue Manuals.

Procedural Change

Appeals will no longer attempt to resolve CDP/EH cases when the bankruptcy automatic stay is in effect. Procedures found in IRM 8.7.6.2.6 Concluding the CDP/EH Process Before the Automatic Stay Has Lifted, will be removed and Appeals Technical Employees (ATE) will instead place these cases in suspense and follow procedures in 8.7.6.2.2 Suspending the CDP Proceeding. All associated forms, letters and checklists will be deactivated and made obsolete.

Affected IRM

IRM 8.7.6; the guidance has already been incorporated into IRMs 8.20.6, 8.20.7, 8.22.4 and 8.22.9.

Effective Date/Effect on Other Documents

This guidance is effective as of the date of this memorandum and supersedes AP-08-0518-0010, Issuing Closing Letters on Collection Due Process and Equivalent Hearing Cases with an Open Bankruptcy Petition. Appeals will incorporate this guidance into the affected IRM by the expiration date of this memorandum.

Contact

If you have any questions, please follow established procedures on How to Contact an Analyst.

Attachment

Affected Changes

Distribution

www.IRS.gov

---

Attachment

8.7.6.2.6

Concluding the CDP/EH Process Before the Automatic Stay Has Lifted

Removing IRM 8.7.6.2.6 in its entirety and removing all references to it throughout IRM 8.7.6.