Release of Lock-in
Internal Revenue Manual Part 5. Collecting Process · 2026-10-03 edition · updated 2026-10-04 · United States
Release the lock-in in the following situations:
If
Then
Taxpayer meets compliance criteria in ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or IRM 5.19.11.7.3.2, Release of Lock-in After Period of Continued Compliance
Input TC 972 AC 146 and enter Disposition Code "CPL "
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Taxpayer was erroneously locked in
Input TC 972 AC 146 and enter Disposition Code "ERR"
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Insolvency Unit has instructed you to release the lock-in
Input TC 972 AC 146 and enter Disposition Code "BNK"
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Taxpayer filed bankruptcy, other than Chapter 7, between the date that the Outcome 2 case was selected for the program and the date that the lock-in letter was issued. See IRM 5.19.11.10.2., Bankruptcy
Input TC 972 AC 146 and enter Disposition Code "BNK"
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Taxpayer has a pending or approved Offer in Compromise (OIC) and OIC Unit has instructed you to release the lock-in. See IRM 5.19.11.10.9., Offer in Compromise (OIC) Taxpayers
Input TC 972 AC 146 and enter Disposition Code "OIC"
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Taxpayer is not subject to withholding
Input TC 972 AC 146 and enter Disposition Code "NSW"
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
Taxpayer is in Combat Zone with active freeze code. See IRM 5.19.11.10.3., Combat Zone
Input TC 972 AC 146 and enter Disposition Code "COM "
Cross-reference the employer's EIN
Issue Letter 2809C to employer and Letter 2813C to taxpayer
Document the AMS history with the reason for the release(s) and close the case on the WHCS
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