home PHONE
home about get started deliver services resources contact
divider
1040
left
left
left nav
left
left
left
left
left
left
alert!

section nav
View Section 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12


Section 7. BMF Installment Agreements

5.14.7  BMF Installment Agreements
  • 5.14.7.1   Overview
  • 5.14.7.2   Summary of Interview and Financial Analysis for Business Accounts
  • 5.14.7.3   Summary of Agreement Criteria for Business Accounts
  • 5.14.7.4   In–Business BMF Installment Agreements for Accounts $1,500 or Less (IBTF Express IAs)
  • 5.14.7.5   Payments on Trust Fund Accounts During approved In-Business Trust Fund Installment Agreements
  • 5.14.7.6   Other Investigations from Centralized Case Processing on In-Business TFRP Installment Agreements
5.14.7.1  (09-30-2004) 
Overview
  1. This chapter provides procedures for processing installment agreements for Business Masterfile (BMF) accounts including in-business trust fund (IBTF) balance dues. The Business Masterfile is primarily dedicated to those accounts with Employer Identification Numbers (EINs), Many of these accounts involve in-business payroll tax accounts, and/or large dollar accounts. The procedures in this section apply to balance due, unassessed liabilities on secured returns, and to liabilities in notice status. These procedures are applicable only if taxpayers can pay operating expenses as well as current and delinquent taxes.(See IRM 5.14.7.2(4).)
5.14.7.2  (07-06-2005) 
Summary of Interview and Financial Analysis for Business Accounts
  1. Ensure the taxpayer receives Publications 1 and 594. (See IRM 5.14.1 regarding taxpayer rights and interest based interviews.) If the taxpayer is able to fully pay the liability, request full payment of the tax, penalty and interest. The taxpayer must be encouraged to pay off the tax liability as quickly as possible. If the liability cannot be paid in full, encourage the taxpayer to pay within 120 days (See IRM 5.14.5.5). Complete a full compliance check, including a review of deposit requirements (if applicable.) Make a lien determination and inform the taxpayer of the Notice of Federal Tax Lien. Also consider issuance of Letter 903 (L903), if appropriate. The L903 informs taxpayers they may be required to file Form 941 on a monthly basis unless they make timely FTDs.
  2. If trust fund taxes are involved, the trust fund recovery penalty should be fully discussed with the taxpayer, and Form 4180, "Report of Interview with Potentially Responsible Officer" should be taken, or the history should be documented as to the reason the interview was not conducted. (See IRM 5.14.7.4.1.1.)
  3. With the taxpayer’s assistance, a Collection Information Statement (CIS) should be completed, except when the taxpayer qualifies for an extension of time to pay, streamlined agreement, or IBTF Express agreement. It is not necessary to complete a financial statement on cases where the account balance is below the deferral level cited in 3.2 of LEM V.
    Note:

    In-Business Trust Fund taxpayers do not qualify for Streamlined Agreements, but may qualify for IBTF Express agreements. (See IRM 5.14.5.4.)

  1. When an inability to pay delinquent and accrued taxes is indicated, the following considerations are necessary:
    1. if the taxpayer cannot pay operating expenses and current taxes, then deferring action on delinquent and accrued taxes may serve no useful purpose. Appropriate collection action such as levy, seizure, or a trust fund penalty, should be considered, to protect the government's interest. The taxpayer’s interests must also be considered, and the financial statement should be reviewed thoroughly with the taxpayer to determine if there is a way to reduce expenses in order to make payment on the taxes and avoid enforced collection action. (IRM 5.14.7.4.1 provides procedures for financial statement analysis.)
    2. if it is determined the taxpayer can pay current taxes as well as operating expenses, and pay delinquent taxes, then follow the installment agreement procedures in IRM 5.14.7.4 and IRM 5.14.7.4.1.
    3. if taxpayers are in business, are currently pyramiding trust fund taxes, and have three or more trust fund balances due assigned to the collection field function, then they are considered "repeaters. " These taxpayers may not — immediately — be granted installment agreements. Installment agreement requests received from these taxpayers should be identified as pending (see IRM 5.14.1.3(5).
    4. If, however, after contact, taxpayers originally classified as repeaters do not continue to accrue liabilities and begin making FTDs and file all appropriate returns (so that they are in compliance with all filing requirements); then, they are no longer considered repeaters and may qualify for installment agreements.
      Note:

      When appropriate, use Form 9297 as provided in IRM 5.14.3.1 to request payment, federal tax deposits and tax returns.

  1. If, based on the above, taxpayers are in current compliance, then see IRM 5.14.7.3, IRM 5.14.7.4 and IRM 5.14.7.4.1 (and their sub-sections) to determine if installment agreements may otherwise be approved.
    Reminder:

    If additional information is needed (prior to approving an installment agreement) provide the taxpayer with deadlines for submitting the information, along with requests for payment (as provided in IRM 5.14.3.1.)

  1. Amounts due on unassessed returns may be included in installment agreements.
  2. Installment agreement payments should be applied in accordance with IRM 5.14.7.5.
5.14.7.3  (09-30-2004) 
Summary of Agreement Criteria for Business Accounts
  1. As noted in IRM 5.14.7.2(4)(b), taxpayers must be able to pay current taxes and current operating expenses to qualify for an installment agreement on accrued and delinquent taxes.Enforcement action will not be taken while the installment agreement is in effect, unless collection is in jeopardy. Once an agreement is in effect, if there is a default, send Letter 2975(DO) to the taxpayer. The taxpayer is entitled to appeal the default. No levy action may be taken for 30 days from the date a taxpayer’s agreement is terminated. (See IRM 5.14.11.) Taxpayers should be advised that collection action may resume 30 days after termination of an agreement. (See IRM 5.14.11.3 regarding reasons for termination of installment agreements.)
  2. See IRM 5.14.4.1.1 for the 30-day notification requirement, when changing the amount or terms of the agreement.
  3. In certain cases contact personnel and revenue officers performing contact duties can grant extensions of time to pay and installment agreements on BMF notice or balance due accounts without securing a CIS or preparing a 433–D. (See IRM 5.14.4.2, IRM 5.14.5.2, IRM 5.4 and IRM 5.14.5.5.)
  4. The Trust Fund Recovery Penalty assessment statutory period must be considered on corporate taxpayers, (IRM 5.14.7.4.1.1 describes necessary actions regarding TFRPs.) Assessment determinations must be made. (See IRM 5.7.4.8)
  5. IRM 5.14.7.4.1 describes the financial analysis necessary for in-business trust fund installment agreements.
  6. IRM 5.14.7.4.2 describes the approval process for in-business installment agreements.
5.14.7.4  (07-06-2005) 
In–Business BMF Installment Agreements for Accounts $1,500 or Less (IBTF Express IAs)
  1. For accounts with unpaid balance of assessments plus any pre-assessed amounts of $1,500 or less that will fully pay the tax, penalty, interest and accruals within two years:
    1. No monitoring is required by Centralized Case Processing Support or revenue officers.
    2. These cases are closed from active inventory in the same manner as regular installment agreements. "IBTF - Express" should be chosen on the Integrated Collection System (ICS) menu.

    (See IRM 5.14.5.4 for criteria relating to these agreements).

5.14.7.4.1  (09-30-2004) 
In-Business Trust Fund Installment Agreements (Accounts Above $1,500) Including Financial Analysis and Determining Ability to Pay
  1. If Notices of Federal Tax Lien were not previously filed, make a lien determination. (See IRM 5.14.1.5.2 and IRM 5.12.2.8.1.)
  2. Verify current compliance with filing and deposit requirements.
  3. Consider the procedures in IRM 5.7.2 for special deposits and monthly filing.
  4. Determine the taxpayer's ability to pay. (In addition to the information provided in this sub-section, also see IRM 5.14.1.5)
  5. Secure Form 433B, Collection Information Statement (CIS) for Businesses and, if appropriate, Form 433A, CIS for Individuals. If these in-business taxpayers can fully pay liabilities from current assets and/or income they do not qualify for installment agreements. Full payment should be requested.
    Exception:

    It is not required that Form 433B be secured if taxpayers qualify for Express agreements. Taxpayers should be encouraged to make payments necessary to reduce the unpaid balance of assessments to $1,500 in order to qualify for Express agreements, to avoid the necessity of a protracted contact and unnecessary analysis.

  1. For agreements on accounts up to $25,000 that will satisfy liabilities within 5 years:
    1. No verification of the CIS is required;
    2. Input bank and receivables information on ICS.
    3. If appropriate, request that taxpayers sell assets or borrow on equity in assets in order to make payment on the delinquent taxes; and,
    4. As noted in IRM 5.14.7.2(4)(b), ensure that the taxpayer has the ability to pay current operating expenses as well as current taxes.
  2. For all other agreements (those that do not meet Express criteria, or are above $25,000, [see IRM 5.14.7.4.1(6)]:
    1. Verify income and expenses. Use bank statements to verify both income and expenses;
    2. Request documentation if assets, liabilities, expenses or income appear questionable;
    3. Complete record checks to determine ownership and equity in real and personal property, including motor vehicles;
    4. If appropriate, request that taxpayers sell assets or borrow on equity in assets in order to make payment on the delinquent taxes.
    5. As noted in IRM 5.14.7.2(4)(b), ensure that the taxpayer has the ability to pay current operating expenses as well as current taxes.
  3. Check corporate officer and partner individual compliance. Although installment agreements are based on the taxpayers' ability to pay, it is the Service's policy to check that the principals of taxpayer businesses are in compliance with their filing requirements when considering an installment agreement for the business. For further information on compliance checks see:
    • IRM 5.1.11.2 regarding compliance checks in general;
    • IRM 5.14.1.5.1(2)(b) regarding sole proprietors; and,
    • IRM 5.14.4.3 regarding "Installment Agreements and Multiple Entities."
  4. Consider a Trust Fund Recovery Penalty (TFRP) assessment. (See IRM 5.14.7.4.1.1 and review the procedures provided in IRM 5.7.4.8 and IRM 5.7.8.)
    Note:

    IBTFExpress agreements do not require TFRP consideration, nor cross compliance checks on officers or partners.

5.14.7.4.1.1  (07-06-2005) 
Trust Fund Recovery Penalties and Installment Agreements
  1. Before granting installment agreements the trust fund recovery penalty must be considered, the assessment statute expiration date protected, and an assessment determination made on all in-business trust fund cases, excluding IBTF Express, see IRM 5.14.7.4.
  1. Area management must ensure consideration is given to securing waivers to extend the statutory period for assessment from each responsible individual when the delinquent taxes will not be fully paid prior to the original ASED.
  2. When soliciting waivers from responsible individuals, notify them of their right to refuse to extend the period of limitations, or to limit such extension to particular issues, or to a particular period of time. Taxpayers must be notified of their right of refusal each and every time they are requested to sign a waiver extending the period for assessment.
  3. It should be fully explained to taxpayers that signature on a waiver, extending the period for assessment, will allow the Service to collect the delinquent and accrued taxes through an installment agreement which extends beyond the original Assessment Statute Expiration Date (ASED).
  4. ASEDs should be extended to the end-date of agreements, plus one year, to allow for skipped payments and interest rate changes. (Use CC ICOMP)
    Note:

    Extend the ASED on all trust fund tax modules to the end-date of the agreement plus one year, even if some trust fund balances due will be fully paid with the first installment payment.

  1. In general, do not request assessment of Trust Fund Recovery Penalties (TFRPs) if taxpayers meet the terms of installment agreements. However, TFRPs must be considered on taxpayers, and the following procedures followed.
  2. If the agreement will not fully pay all balances due at least a year prior to the earliest Assessment Statute Expiration Date (ASED), then:
    1. Assemble all documentation for completion of the penalty to the point of proposing assessment;
    2. Complete interviews for all potentially responsible persons, and any other interviews necessary to determine responsibility and willfulness.
    3. Secure 433A (Collection Information Statement) from all potentially responsible persons. Conduct financial analysis to determine whether the penalty, if assessed would be collectible.
    4. Request signature of Form 2750, "Waiver Extending Statutory Period for Assessment of Trust Fund Recovery Penalty" from all potentially responsible officers. See IRM 5.14.7.4.1.1(1) through (4).
    5. If a potentially responsible officer refuses to extend the ASED, and the trust fund recovery penalty is determined collectible, complete and recommend assessment of the TFRP for that responsible person.
  3. If potentially responsible persons have the ability to pay from current assets or income, request payments be made to reduce the trust fund portion of the liability. If they have the ability to make a significant payment or payments on the trust fund portion of liabilities, but do not make payments (or do not make plans for payment from personal assets) consideration should be given to recommending assessment of the TFRPs. If TFRPs are assessed on these cases, lien determinations should be made and, if appropriate, liens should be filed, but no other collection action should be taken (unless otherwise warranted) during installment agreements.
    Exception:

    If taxpayers were "repeaters" , the trust fund recovery penalty normally will be assessed. (See IRM 5.14.7.2(4)(c).)

    In these instances in which the decision is to withhold collection of the assessed TFRP while the business is paying through an installment agreement, include the responsible person(s) SSN as a related TIN on the IBTF installment agreement. In the ICS process of inputting the installment agreement, answer yes the to question, "Are there other TINs to be included with this IA? (TINs will be updated to Status 63). (Y/N)" . Then input the officer(s) SSN as the related TIN. This will place the MFT 55 modules in Status 63 pending the businesses’ compliance with the IA.

    Note:

    Only MFT 55 modules can be included in this process. Resolve other MFT liabilities if applicable.

  1. Upon completion of trust fund recommendation process on ATFR (Automated Trust Fund Recovery Application) complete Form 3210 to transmit the case to Control Point Monitoring (CPM).
  2. If TFRPs are assessed; notify these taxpayers:
    1. they should respond to notices regarding the TFRP; and,
    2. payments made to the TFRP accounts will be subtracted from the accounts upon which the TFRP was based.
  3. Trust Fund Recovery Penalty accounts and case files require SPECIAL HANDLING during in-business trust fund installment agreements.
    1. If the TFRP investigation has been completed, but is not being assessed (see IRM 5.14.7.4.1.1(7)), the TFRP file must be sent to Centralized Case Processing Unit where the IBTF agreement is being monitored and associated with the IBTF IA casefile. Add a cross-reference to the BMF account on ICS. Label the file "Unassessed TFRP-IBTF IA Backup Documents – Earliest ASED is:" .
    2. If the TFRP assessment has been made: Make lien determinations on these accounts. (See IRM 5.14.7.4.1.1(14) and IRM 5.14.7.6 regarding opening OIs for completion of TFRPs and lien determinations.)
    3. If the TFRP assessment has been made and collection is being withheld while the business is paying through an IBTF agreement and a lien determination has been made, the TFRP assessment (MFT 55) should be included as a related TIN on the IBTF IA. (See IRM 5.14.7.4.1.1(8)). Label the file "Assessed TFRP baldue file to associate with IBTF IA – EIN xx-xxxxxxx ."
  4. Hard copy TFRP files, containing copies of bank statements, signature cards, and all other documents relative to assertion of TFRPs must be retained in Centralized Case Processing function during agreements. (See IRM 5.14.8.6 regarding disposition of these documents after full payment.) These files must be retained in Centralized Case Processing during agreements:
    1. to assess previously unassessed penalties if necessary; and,
    2. for processing abatement claims, bankruptcy proofs of claim, offers, appeals, and similar actions.
  5. The files should be labeled either:
    1. "Assessed TFRP balance due file to associate with IBTF IA – EIN: xx-xxxxxxx." (Associate Balance Due Account and Lien Determination OIs with these files);
    2. "Unassessed TFRP-IBTF IA Backup Documents – Earliest ASED is:" .
  6. If TFRP investigations are incomplete but all other actions and analysis necessary for granting installment agreements have been completed:
    1. Group managers should approve agreements; and
    2. OIs should be opened for revenue officers to complete the TFRP investigation.
    3. Complete lien determinations as provided in IRM 5.14.7.4.1.1(11)(b). Liens may be filed if appropriate but no enforcement action should be taken on these accounts unless the IBTF IA is terminated.
    4. Once the TFRP has been completed, assessed and a lien determination made (and, if appropriate, lien filed) forward the file to the Centralized Case Processing Unit where the installment agreement is being monitored.
      Note:

      See IRM 5.7.4.8.1(5) if agreements will fully pay balances due more than one year prior to ASEDs.

  1. TFRPs must be considered and, if appropriate, assessed in connection with consideration of installment agreements for any out-of-business corporation.
5.14.7.4.2  (07-06-2005) 
Approval and Monitoring
  1. Complete Form 433D with the taxpayer's signature, if available. (See IRM 5.14.1.5.3(7) and IRM 5.14.1.5.3(8) regarding the necessity of obtaining signatures for certain agreements, and IRM 5.14.7.4.2(4) regarding Integrated Collection System (ICS) choices if signatures are required.
  2. Inform taxpayers installment agreements require approval.
  3. Unapproved agreements may not be held to monitor compliance.
    Note:

    See IRM 5.14.3.1 on requesting and accepting payments when installment agreements are NOT in effect and during pending installment agreements.

  1. Choose the appropriate monitoring location on ICS. These cases will be monitored in Centralized Case Processing. Choose the appropriate closing action on ICS - "CCP (PSC) - IBTF - IA (SPB Item in CCP)." Upon approval of the IBTF IA, ICS will close the balance due modules and systemically create an SPB Item and reassign to CCP. for later input into status 60. These SPB items will be monitored in CCP.
    Note:

    If a paper Form 433D was signed by the taxpayer and approved by the manager, choose ICS Installment Agreement Option B, otherwise use ICS Installment Agreement Option A.

  1. While preparing the request through ICS, a prompt will alert the user if there are unreversed TC 971 AC 063s on any tax modules. Respond " No" to the question: "Do you want to input the 971s?" , then proceed with completion of the document. After completion of the installment agreement, determine which modules do not have unreversed TC 971 AC 063 and request input of TC 971 AC 063 on those modules. This may be requested through ICS , Form 3177, or Form 4844.
  2. 433D completion on ICS sends an approval notification to the manager under Option A only. No approval notification is sent to the manager under Installment Agreement Option B on ICS.
  3. Option A on ICS: Approval by the group manager using the ICS Installment Agreement Option A generates:
    1. Transaction code (TC) 971 Action Code (AC) 063, (See (6) above.)
    2. Approval notification to the revenue officer.
    3. An original and copy of the Form 433D .
    4. Letter 2849 or 2850: These letters provide taxpayers with notice of the approval of their agreement as well as the terms and conditions of the agreements.
    5. A SPB item (Other Investigation) for Centralized Case Processing to monitor the case.
    6. An Agreement Locator Number (ALN) "0215" ; Subcode of "900" ; and a Location Code of "IBTF" .
  4. Use Option B only if hard copy (non-ICS) installment agreements are used and approved.
    Caution:

    Option B on ICS does not generate the systemic information discussed in IRM 5.14.7.4.28(a) through (d).

    Reminder:

    Status 60 is NOT input to IDRS based on approval of installment agreements on ICS. Ensure Form 433D or 2159 is completed and sent to Centralized Case Processing for input, or status 60 will NOT be input.

  1. Option B generates only those items listed in IRM 5.14.7.4.28(e) and (f). Also, use of Option B requires that the contact employee must request input of Transaction Code (TC) 971 Action Code (AC) 063 on all appropriate modules (if no reversed TC 971 AC 063 is on the module.) This may be requested through ICS or on a paper document Form 3177 or Form 4844.
  2. After approval, revenue officers must ensure taxpayers:
    1. are informed payments must be made whether or not notices are received notice from a Campus:
    2. receive Letter 2849/2850 or approved 433D;
      Note:

      These should provide a payment address for the taxpayer's Campus.

  1. In-business trust fund installment agreements input to IDRS Status 60 must be monitored in Centralized Case Processing Support. Forward approved agreements to Centralized Case Processing Support along with the Trust Fund Recovery Penalty Package, if one was prepared after taking the actions described above (See IRM 5.14.7.4.1.1).
  2. Write: "In-Business Trust Fund IA – Earliest CSED: _____, Earliest ASED _____" on the routing slip or transmittal document, and on the agreement form itself.
    Reminder:

    Installment agreements must be fully paid prior to CSEDs or may not be approved and will not be transferred to Centralized Case Processing for monitoring.

  1. Centralized Case Processing:
    1. will rely fully on the CSED and ASED information provided in accordance with IRM 5.14.7.4.2(13).
    2. will not accept installment agreements for monitoring unless ASEDs and CSEDs have been properly addressed, and marked in accordance with the procedures provided in IRM 5.14.7.4.2(13).
    3. is not responsible for reviewing the CSEDs and ASEDs of installment agreements it receives (for monitoring) either on initial receipt, nor on an ongoing basis.
    4. is, however, responsible for ASEDs and CSEDs associated with liabilities accrued while cases are assigned to it for monitoring.
    5. will ensure proper case actions are taken if taxpayers do not remain in compliance with the filing and paying requirements during installment agreements. Newly accrued liabilities are the responsibility of Centralized Case Processing up to the point the case is transferred to a field group or other disposition or resolution for the case is determined.
  2. ICS will systemically close the balance due modules and assign an SPB item to Centralized Case Processing The assignment numbers for Centralized Case Processing are as follows:
    • AO = 35
    • TO = the Territory – 70 range
    • XX = the unit in Centralized Case Processing that will be responsible.
      Note:

      The unit monitoring number (XX) will be one of four numbers: 66, 67, 68, or 69.

    • 00 = the group manager of Centralized Case Processing Support.
  1. Systemic transfer of accounts to Centralized Case Processing servers will occur when IBTF IAs are approved.
    Exception:

    IBTF Express agreements are not monitored in Centralized Case Processing (see IRM 5.14.5.4.)

  1. Indicate on the agreement form (or on an attachment) what must be monitored, including anticipated FTD amounts and due dates.
    1. Advise the taxpayer that the case is being transferred for continuous monitoring; provide pre-addressed envelopes (if available) with the proper mailing address; and inform the taxpayer that reminder notices will not immediately be sent, and financial reviews may be conducted. (See IRM 5.14.4.1.1.)
    2. The SPB item created when installment agreements are approved provide a list to check that includes installment payment; quarterly amounts to be deposited; and returns the taxpayer is required to file.
5.14.7.5  (07-06-2005) 
Payments on Trust Fund Accounts During approved In-Business Trust Fund Installment Agreements
  1. Due to the Trust Fund Recovery Penalty (TFRP) (reference is Internal Revenue Code 6672) more than one entity may be liable, or become liable, for the trust fund portion of liabilities (penalty amounts). Therefore, when businesses enter into installment agreements the entities or individuals liable for the TFRP may prefer (and request that) the taxpayer's payments be applied to the trust fund portion of the balance due accounts. If this occurs, taxpayers should be notified that, in accordance with Treasury Regulation 301.6159–1(b)(1)(i):
    1. Although voluntary, installment agreement payment application is governed by the terms of agreements.
    2. As stated on the agreement form: "We will apply all payments on this agreement in the best interests of the United States."
    3. Taxpayers are not permitted to designate installment agreement payments.
    4. Installment agreement payments will be applied in the best interests of the United States, regardless of the policy to apply payments to all tax first then penalties and interest when dealing with trust fund modules.
  2. Individuals who are potentially responsible for TFRPs should be encouraged to make payments from their own resources. These payments are not considered to be installment agreement payments. (See IRM 5.14.1.3(8) and IRM 5.14.1.3(9)(Example (4).) In addition, the following examples further illustrate common interactions between installment agreements and TFRPs:
    1. Example:

      (1) ABC Inc., has not made a request for an installment agreement. Mr. Smith, officer of ABC Inc., tells the revenue officer that he will pay $500 per month toward the trust fund portion of a tax liability with personal funds. The trust fund penalty has not been assessed and Mr. Smith has not yet been determined to be responsible for a TFRP. Also, the balance due period(s) from which the liability may be derived have not been specifically identified. Since the liability has not been identified this is not a pending installment agreement. Also, Mr. Smith must be informed that any payments will be considered "voluntary" , and may be applied according to his instructions. Information regarding the contact must be documented in the case history. (See also IRM 5.14.3.1(3) and (5) regarding the distinction between "voluntary" , "installment agreement" , and "requested" payments.)

      Example:

      (2) (Same scenario as Example 1 above except...) Mr. Smith has signed Form 2751 regarding the trust fund recovery penalty of ABC Inc. As long as Mr. Smith provides a specific payment amount (and his request includes the information required by IRM 5.14.1.3(4)) this is a pending installment agreement. Note that the installment agreement is pending for Mr. Smith's TFRP, not for ABC Inc's balances due.

      Example:

      (3) LMNOP Inc. enters into an installment agreement requiring payment of $500 per month. The corporation does not make payments from corporate funds. Instead, corporate officers Jones and Johnson take turns designating payments of $500 per month with their personal funds on behalf of LMNOP Inc. Although they write on their checks that the payments should be applied to the trust fund portion of the liabilities, these payments may be applied in the best interest of the government. (See IRM 5.14.7.5(1).)

      Example:

      (4) (Same scenario as Example 3 above except...) LMNOP makes its monthly payment of $500 from corporate funds. In addition to the installment agreement payments made by the corporation, the officers make payments as described above. These payments, made in addition to the payments made by the corporation under the agreement, may be applied according to the officers' instructions.

      Note:

      See also Example 4 in IRM 5.14.1.3(9).

5.14.7.6  (07-06-2005) 
Other Investigations from Centralized Case Processing on In-Business TFRP Installment Agreements
  1. In-business trust fund installment agreements will be monitored in Centralized Case Processing in accordance with the procedures provided in IRM 5.14.8.4.
  2. Centralized Case Processing will send other investigations (OIs) to revenue officers if there is a need for follow-up action or investigation. These OIs will be sent to the field to:
    1. take necessary action on defaulted agreements;
    2. complete TFRP investigations;
    3. complete lien determinations and, if necessary, file Notice of Federal Tax Lien;
    4. take new financial statements; and,
    5. other actions/investigations that require temporary field assignment.
  3. Revenue officers will take requested actions, or accept case transfer and close OIs.
  4. Provide details of OI closures in case histories and send paper case files to originating Centralized Case Processing employees.
divider
© Copyright 2006 Accufirst Inc. All rights reserved.
TAXFIRM.COM IS A DIVISION OF ACCUFIRST® INC.
Disclaimer | Privacy Statement | Site Map | Contact