Memo Extends Temporary Guidance for Collection Employees

Expiration Date: March 31, 2021
Affected IRMs: 5.1.10; 5.1.12; 5.8.4; 5.12.2; 5.14.1; 5.15.1; & 5.16.1

Date: January 22, 2021

MEMORANDUM FOR
FIELD COLLECTION, SPECIALTY COLLECTION FIELD OFFER IN COMPROMISE, AND SPECIALTY COLLECTION INSOLVENCY EMPLOYEES

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

SUBJECT:
Reissuance of Temporary Guidance for Field Collection and Specialty Collection Offer In Compromise Procedures During the COVID 19 Pandemic and Resumption of NFTL Procedures

Purpose

This memorandum reissues Interim Guidance memorandum SBSE 05-1020-0084, Temporary Guidance for Field Collection and Specialty Collection Offer In Compromise Procedures During the COVID 19 Pandemic and Resumption of NFTL Procedures issued on October 16, 2020. This memorandum will remain in effect until March 31, 2021.

Background

On March 25, 2020, the Commissioner issued the People First Initiative which granted specific relief to taxpayers and suspended many collection activities as a result of the COVID-19 pandemic. With the expiration of the People First Initiative, the SBSE Deputy Commissioner, Collection and Operations Support issued a memorandum providing a framework of operational guidance Collection compliance activities on July 06, 2020.

Procedural Change

This memorandum extends the temporary guidance related to taxpayer contact, initial contact, and asset evaluations. This memorandum also extends the waiver requiring a field call prior to acceptance of certain Offers In Compromise in accordance with IRM 5.8.4.8(10) until March 31, 2021. The temporary guidance regarding NFTL determinations and filings is not extended.

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 contacts and field activities require Territory Manager approval and are 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 plexiglass 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 include 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. See Attachment 1 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.

Field Calls Prior to Certain Offer in Compromise Acceptances

The requirement for a field call prior to acceptance of an offer in compromise in accordance with IRM 5.8.4.8.(10) is waived until March 31, 2021.

Notice of Federal Tax Lien Procedures

Effective October 1, 2020, Field Collection, Specialty Collection Field Offer In Compromise, and Specialty Collection Insolvency employees may resume normal procedures for making NFTL determinations and filing NFTLs. Unless required by delegation order or IRM guidance, management approval of new NFTL filings is no longer necessary. Also, employees may resume requesting NFTLs systemically for cases assigned to them on the Integrated Collection System (ICS).

Effective Date

This guidance is effective the date of issuance of this memorandum.

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.

• Installment Agreements: Eric Slayback, Program Manager

• Currently Not Collectible: Eric Slayback, Program Manager

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

• Soft Contact Procedures: Jana McDaniel, Program Manager; Scott Pryde, Sr. Program Analyst.

• Offer in Compromise: Diana Estey, Program Manager; Thomas B. Moore, Sr. Program Analyst

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

• Enforcement: Allison Kempe, Acting Program Manager, Kyle Romick, Sr. Program Analyst

Attachments (1)

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

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Attachment to Interim Guidance: SB-05-0121-0010

Soft-Contact
If an employee is . . .	And . . .	The employee should . . .
Attempting to contact a taxpayer	There has been contact with the taxpayer during the COVID-19 collection suspension period	Contact the taxpayer or the taxpayer's authorized representative via telephone to request documents, payments and the filing of tax returns necessary to continue the collection investigation consistent with current IRM procedures.
Attempting to contact a taxpayer	There has been contact with the taxpayer during the COVID-19 collection suspension period, but the taxpayer is now unresponsive	Issue Letter 725, Meeting Scheduled with Taxpayer, to schedule a telephonic appointment to determine the impact to the taxpayer to support a determination to continue the collection investigation or temporarily suspend the investigation at the group level.
Attempting to contact a taxpayer	There has been no prior contact with the taxpayer or the taxpayer's authorized representative during the COVID-19 collection suspension period	Issue Letter 725, Meeting Scheduled with Taxpayer, to schedule a telephonic appointment to determine the impact to the taxpayer to support a determination to continue the collection investigation or temporarily suspend the investigation at the group level.
Conducting a face-to-face field visit	The taxpayer has agreed to meet with the employee at their residence, business, POA's office or other appropriate location	Secure group manager (GM) approval and concurrence prior to forwarding for territory manager (TM) approval. The TM must document the ICS history to indicate approval given prior to field visit. Coordinate with GM prior to field visit to secure necessary PPE supplies (i.e. masks/gloves, hand sanitizers and antibacterial wipes.)
Conducting face-to-face interview in employee's POD	The taxpayer has agreed to meet with the employee at their POD location.	Secure GM approval and concurrence prior to forwarding for TM approval. The TM must document the ICS history to indicate approval given prior to meeting. Meet with GM prior to the appointment to secure necessary PPE supplies (i.e. masks/gloves, hand sanitizers and antibacterial wipes.)
Under a federal, state or local order a quarantine or an isolation order is in place due to the COVID-19 pandemic	The taxpayer or the taxpayer's authorized representative feels a field visitation is unnecessary and the taxpayer refuses to participate in telephonic interviews	Advise the taxpayer, or the taxpayer's authorized representative the required interviews will be conducted telephonically and schedule the appropriate interview(s). Discuss the case with the GM to determine if the collection investigation should be suspended or if you should proceed with enforcement actions.