Internal Revenue Manual Part 8. Appeals

Official source: Internal Revenue Manual (https://www.irs.gov/irm/part8/irm_08-022-004), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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(1) This transmits revised IRM 8.22.4, Collection Due Process, Collection Due Process Appeals Program.

(1) Incorporated Appeals Interim Guidance memorandum AP-08-0824-0016, Reissued Guidance for Destroying Original Paper Case Related Documents, Post-Digitization, into IRM 8.22.4.2.6 by revising paragraph (2) and removing paragraphs (3) & (4).

(2) Incorporated Appeals Interim Guidance memorandum AP-08-0424-0007, Obsoleting Form 14640, Addendum to Form 656, and Amending Offers in Compromise, by removing references to the obsolete form from IRM 8.22.4.2.5(3) and Exhibit 8.22.4-4.

(3) Updated references throughout to the former Wage & Investment (W&I) division to reflect the organizational name change to Taxpayer Services (TS) in compliance with SPDER’s directive to revise affected IRMs.

Steven M. Martin Director, Operations Support

Purpose: This Internal Revenue Manual (IRM) section provides an overview of the Collection Due Process (CDP) program to Appeals Officers (AOs) and other Appeals employees working CDP cases and related matters. CDP cases are received from Automated Collection System Support (ACSS) sites located in Taxpayer Services (TS) and Small Business/Self-Employed (SB/SE) divisions, as well as SB/SE Field Collection.

Audience: The primary users of this IRM are Appeals Officers (AOs) and Appeals Team Managers (ATMs) handling CDP, Equivalent Hearing (EH), Retained Jurisdiction (RJ) and CDP Timeliness Determination (CDPTD) cases.

Policy Owner: Policy, Planning, Quality and Analysis (PPQ&A) is under the Director, Operations Support.

Program Owner: Appeals Policy is the program office responsible for providing technical and procedural guidance to the Appeals organization and is under the Director, PPQ&A.

Contact Information: Appeals employees should follow established procedures on How to Contact an Analyst. Other employees should contact the Product Content Owner shown on the Product Catalog Information page for this IRM.

The IRS Restructuring and Reform Act of 1998 (RRA ‘98) created CDP appeal rights and, with them, the ability for taxpayers to contest their liability under certain circumstances.

Internal Revenue Code (IRC) sections 6320 and 6330 are the primary sources of authority, in addition to applicable IRM sections. Further, the Taxpayer Bill of Rights, IRC 7803(a)(3), applies to Appeals employees’ interactions with taxpayers.

The Policy analyst shown as the originator on the Product Catalog page is the assigned author of this IRM.

PPQ&A provides trend and data analyses and detailed summary reports for Appeals.

See IRM Exhibit 8.22.4-3, Common Terms and Acronyms Used in Collection Due Process, for such common terms and their definitions.

This section provides an overview of the CDP process and Appeals' role and responsibilities within the process.

Appeals’ mission is to resolve tax controversies on a basis which is fair and impartial to the government and the taxpayer. To accomplish this mission in CDP cases, the Appeals hearing officer is responsible for making a determination based on the facts and the law known to Appeals during the time of the hearing.

The Tax Court's standard of review for non-liability CDP determinations is for abuse of discretion. The Tax Court considers:

Whether Appeals' factual and legal conclusions reached at a CDP hearing are reasonable, not whether they are best possible or indisputable

The reasonableness of Appeals’ ultimate decision

CDP files sent to Appeals should contain sufficient documentation for Appeals to make a determination. Due to statutory requirements, if a CDP file lacks documentation, it cannot be returned to Collection as a premature referral. Instead, the hearing officer must decide whether to:

Request relevant information from the taxpayer, or

Issue an Appeals Referral Investigation (ARI) for Collection to secure or verify information

Part 5, Collecting Process, of the IRM contains the primary administrative policies and procedures for considering alternatives to collection and case resolutions, such as:

Offer in Compromise - IRM 5.8

Federal Tax Liens - IRM 5.12

Installment Agreements - IRM 5.14

Financial Analysis - IRM 5.15

Currently Not Collectible - IRM 5.16

Liability Collection, Balance Due - IRM 5.19.1, for Automated Collection Service (ACS) cases

Appeals researches Part 5, in general, to:

Verify whether administrative procedures were followed in issuing a Notice of Intent to Levy and/or filing a Notice of Federal Tax Lien (NFTL)

Review Collection case actions and decisions, taking into account any special circumstances

Evaluate any offers of collection alternatives by the taxpayer

References in Part 5 to take or propose any enforcement or investigative activity do not apply to Appeals employees.

Taxpayers may request a CDP hearing upon receipt of a:

Letter 3172, Notice of Federal Tax Lien and Your Rights to a Hearing Under IRC 6320

Letter 11, Final Notice - Notice of Levy and Notice of Your Right to a Hearing

ACS LT 73

ACS LT 75

Letter 1058, Final Notice Reply within 30 Days

Letter 1058 (BR), Final Notice Reply within 30 Days (Braille Version)

Letter 1058 (SP), Final Notice Reply within 30 Days (Spanish Version)

Letter 1058-A, Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers

Letter 1058-A (SP), Notice of Intent to Levy and Notice of Your Right to a Hearing for Joint Filers (Spanish Version)

Letter 1058-B, Final Notice Reply Within 30 Days - Branded Prescription Drugs

Letter 1058-D, Post Levy Collection Due Process (CDP) Notice

Letter 1058-D (SP), Post Levy Collection Due Process (CDP) Notice (Spanish Version)

Letter 1058-F, Post Levy Federal Contractor Collection Due Process

Letter 1058-F (SP), Post Levy Federal Contractor Collection Due Process (Spanish Version)

Letter 1058-I, Final Notice Reply within 30 Days - Insurance Provider Fee

CP 77, 90, 92, 242 and 297

Letter 2439, Notice of Jeopardy Levy and Right of Appeal

IRC 6320 requires the IRS to notify the taxpayer of the filing of an NFTL and the right to request a CDP lien hearing within five business days after the first NFTL for a tax period is filed.

IRC 6330 requires the IRS to notify the taxpayer of the right to request a CDP hearing not less than 30 days before issuing the first levy to collect a tax period.

The IRS waits 10 days after issuing the notice of assessment of tax and demand for payment before issuing the Notice of Intent to Levy. However, Treas. Reg. 301.6331-2(a)(1) permits concurrent issuance of the notice of assessment and the Notice of Intent to Levy.

IRC 6330(f) contains exceptions to a right to a hearing before levy. When a levy is served in the following instances, the taxpayer is offered an opportunity to request a post-levy hearing:

Collection of the tax was in jeopardy

State Income Tax Levy Program (SITLP)

"Disqualified" employment tax levy (DETL)

Federal contractor levies under the Federal Payment Levy Program (FPLP)

IRC 6320 and IRC 6330 provide for one hearing per type of tax and tax period for the tax debt listed on the NFTL or Notice of Intent to Levy. The right to request a CDP hearing applies to the first NFTL filed or the first levy notice issued for a particular tax debt.

IRS filed an NFTL in Washington County on 01/11/14 listing a Form 1040, U.S. Individual Income Tax Return, tax debt for tax year 2011. An NFTL was also filed in Lincoln County on 03/17/14 listing the same 2011 Form 1040 tax debt. The NFTL filed 01/11/14 in Washington County is the NFTL to which the right to a hearing under IRC 6320 applies.

A Letter 3172 is also issued when an NFTL is subsequently filed for the same tax period, but includes an additional assessment (e.g., Transaction Code (TC) 290, TC 300, TC 240) that is not shown on the previous NFTL. In this circumstance, a hearing is granted for the additional assessment. See IRM 5.12.6.3.6.2, CDP Notice for NFTL on Additional Assessments

The taxpayer may receive more than one CDP pre-levy hearing under IRC 6330 where the same type of tax for the same period is involved, but where the amount of the unpaid tax has changed as a result of an additional assessment of tax (not including interest or penalties) for that period or an additional accuracy-related or filing-delinquency penalty has been assessed.

Collection cannot systemically isolate an additional assessment of tax when issuing the CDP levy notice. A CDP levy notice for additional tax includes the balance for the whole period. If the taxpayer requests a CDP hearing, the hearing only covers the additional tax assessment if the taxpayer already had an opportunity for a hearing on the original tax assessment.

The taxpayer is not entitled to another CDP hearing under IRC 6330 if the additional assessment represents accruals of interest, penalties, or both. However, an exception to one hearing per type of tax and tax period can occur with penalties. The taxpayer is entitled to a second CDP notice/second opportunity for a hearing for Failure to Pay (FTP) penalty if the prior CDP notice listed no accrued or assessed FTP. See Treas. Reg. 301.6330-1(d)(2) Q&A D-1.

IRC 6320 refers to IRC 6330 for the legal requirements regarding:

Matters considered by Appeals at the hearing IRC 6330(c)

Judicial review of the determination made by Appeals-IRC 6330(d)

Suspension of collection activity and the statutory period of limitations-IRC 6330(e)

A CDP lien hearing is held in conjunction with a CDP levy hearing whenever an NFTL is filed and Notice of Intent to Levy are concurrently issued, and the taxpayer requests a hearing under both IRC sections.

In making a CDP determination, IRC 6330(c)(3) requires Appeals to:

Verify applicable law and administrative procedure were met;

Consider relevant issues relating to the unpaid tax, the filing of the NFTL or the proposed levy; and

Consider whether the action taken or proposed balances the government's need for the efficient collection of taxes with the taxpayer's legitimate concern that any collection action be no more intrusive than necessary.

The taxpayer may raise any non-frivolous issue relating to the NFTL or the proposed levy.

An issue may not be raised at the CDP lien or levy hearing if the taxpayer participated meaningfully in any previous administrative or judicial proceeding where the same issue was already raised and considered.

The taxpayer may seek judicial review of the Notice of Determination (NOD) by filing a petition in the United States Tax Court.

In CDP, Appeals has no responsibility to protect a collection statute from expiration.

Appeals has no requirement in CDP to prepare a Form 3999, Statute Expiration Report, for expired collection statutes.

Refer to IRM 8.21.5, Statutes on Collection Cases, for collection statute issues.

The use of digital signatures in taxpayer correspondence is commonplace. When digitally signing any document being sent to the taxpayer or representative, the signature must be only a scanned facsimile of your actual signature.

Signatures must not include Adobe graphics, the date, SEID (Standard Employee Identifier), e-mail address or other employee information, or be merely a typewritten signature font.

Contact Appeals Business System Planning (BSP), the lead program analyst for CDP, or the Appeals Exchange web site for assistance creating digital signatures.

Regardless of how the CDP case file is managed (as a paper file, electronic, or a hybrid of the two), certain key documents should always be attached electronically to the Appeals Centralized Database System (ACDS) record. This will ensure the secure storage and ease of availability of these key documents.

Documents should be attached electronically to the ACDS record for the CDP key file.

These documents include the following:

Appeals Case Memorandum (ACM) or NOD Attachment

Counsel Memoranda

Notice of Determination (NOD) or Decision Letter

Message files from Taxpayer Digital Communications (TDC)

Written verification of IRC 6751(b)(1) supervisory approval of certain penalties; See IRM 8.22.5.4.2.1.7, Supervisory Approval of Certain Penalties

Form 14559, Appeals Offer in Compromise Memorandum

Form 14561, Income and Expense / Asset Equity Calculation Table

Form 12256, Withdrawal of Request for Collection Due Process or Equivalent Hearing

Form 12257, Summary Notice of Determination and Waiver of Judicial Review

Form 2209, Courtesy Investigation

Form 2261, Collateral Agreement (any)

Form 3870, Request for Adjustment

Letter 3978, Supplemental Notice of Determination

Letter 4000, Last Opportunity

Form 4183, Recommendation re: Trust Fund Recovery Penalty Assessment

Form 433-D, Installment Agreement

Form 5402, Appeals Transmittal and Case Memo

Letter 5490, Appeals Offer in Compromise Acceptance

Letter 5521, Offer in Compromise Acceptance - Doubt as to Liability

Form 656, Offer in Compromise

Form 656-L, Offer in Compromise (Doubt as to Liability)

Form 7249, Offer Acceptance Report

When created in ACDS, some of the items listed above may already be systemically attached electronically to the system.

Other attachments may also be included.

See Exhibit 8.22.4-4, CDP Naming Conventions for Documents Attached to ACDS, for appropriate file naming conventions for certain uploaded documents.

Appeals manages an increasing number of CDP cases via electronic means. This process renders most paper documents obsolete once they have been scanned and uploaded to ACDS.

For cases that are managed electronically or as a paper/electronic hybrid, follow IRM 8.6.1.8 , Electronic Data Retention, which contains step-by-step instructions for scanning, uploading, and destroying properly digitized paper documents. Following these instructions ensures you electronically retain all documents you reviewed in making your determination. Such documentation is necessary to frame the complete basis of your decision, which is critical in the event a case needs to be defended in Tax Court. See IRM 8.22.9.2 , Administrative Record, for details pertaining to the content of the administrative record.

Retain with the CDP case any related work unit (WUNO) or other paper files that were used in making your determination. If a NOD is issued, these related paper files should be suspended along with the CDP administrative file, whether the CDP was managed as a paper file, fully electronically, or as a paper and electronic hybrid. For more information, see IRM 8.20.6.20.2, CDP Notices of Determination (NOD), and IRM 8.22.9.2, Administrative Record.

A taxpayer who fails to make a timely request for a CDP hearing is not entitled to a CDP hearing, but may request an administrative Appeals hearing, which is referred to as an Equivalent Hearing (EH). In an EH, follow the same procedures and consider the same issues as a CDP hearing.

A taxpayer must submit a written request for an EH within the one-year period beginning the day after the date of the CDP levy notice. For a CDP lien EH, a taxpayer must submit a written request for the EH within the one-year period beginning the day after the end of the five-business-day period following the filing of the NFTL. If a taxpayer does not request an EH within the prescribed time, the taxpayer forgoes the right to an EH.

Appeals confirms a request for an EH was not timely in the CDP separate timeliness determination (CDPTD). See IRM 8.22.5.9, Collection Due Process Timeliness Determinations (CDPTD).

During an EH, levy action is generally suspended as a matter of policy:

On tax periods not subject to a CDP levy hearing, unless all pre-levy notifications have been met or the section 6331(d) notice has been given and one of the exceptions in 6330(f) applies,

On tax periods subject to the EH

On tax periods subject to a CDP NFTL hearing for which all pre-levy notifications have been met

Because the statutory period under IRC 6330(e) is not suspended during an EH, Collection may determine it to be necessary to levy despite the above factors. IRM 8.22.4.4(15) below describes when Collection may deem it appropriate to levy while an EH case is open.

Appeals issues a Decision Letter instead of a NOD. The taxpayer is not entitled to seek judicial review of Appeals' decision in an EH case unless one or more of the following issues are raised:

Spousal relief under IRC 6015

Abatement of interest under IRC 6404(h)

Timeliness of the request for a CDP hearing

There is no retained jurisdiction in an EH case.

See Treas. Reg. 301.6330-1(i) for more information on EH hearings.

Collection should only issue one CDP levy notice and one CDP lien notice per tax period, unless an additional amount of tax (other than interest and penalty accruals) is assessed.

Collection must issue separate CDP notices to husband and wife when the liabilities are joint, even if they reside at the same address

Collection may issue separate CDP notices to individual partners as well as the partnership entity in partnerships

Integrated Data Retrieval System (IDRS) TC 971 with an appropriate Action Code (AC) is input as follows after the IRS mails a CDP notice:

TC 971 AC 069 - Notice of Intent to Levy and Notice of Your Right to a Hearing

TC 971 AC 252 - Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320

Once a Form 12153, Request for a Collection Due Process or Equivalent Hearing, is received from a taxpayer, Collection may continue to work with the taxpayer for up to 90 days, if the taxpayer is willing. If Collection determines there are indicators of fraud, Collection may hold a CDP hearing request for 90 days while developing a fraud referral. See IRM 5.1.9.3.3, Processing CDP and EH Requests. Collection promptly forwards a case to Appeals in the following instances:

Frivolous issues are raised

The taxpayer only wants to work with Appeals

The taxpayer is not seeking to resolve the issue but is using the CDP process as a method for delay (i.e., pyramiding in-business trust fund taxpayer)

Bankruptcy was filed after the CDP levy or lien notice was sent

The trust fund assessment (MFT) 55 or 17 is being challenged (ACS only)

The only issue is a request for an Installment Agreement and the assessed balance is $250,000 or more (ACS only)

Cases with a TC 914, 916 or 918 Criminal Investigation (CI) where the taxpayer raises concern over the CI issue

Collection prepares a CDP transmittal document for every CDP and EH case sent to Appeals:

Field Revenue Officers (ROs) use Form 14461, Transmittal of CDP/Equivalent Hearing Request

ACS uses Form 12153-B, Referral Request for CDP Hearing from ACS Support (with instructions)

In addition to the CDP transmittal document, Collection should also provide the following documentation:

Form 12153, Request for a Collection Due Process or Equivalent Hearing, or other written request for a hearing along with the envelope, if received by mail

Copy of the CDP notice, such as the Letter 1058, Final Notice Reply Within 30 Days, or Letter 3172, Notice of Federal Tax Lien and Your Right to a Hearing Under IRC 6320

Copy of Form 2848, Power of Attorney and Declaration of Representative, or IDRS command code CFINK print

Collection Information Statement or other financial information

Copies of correspondence to and from the taxpayer or Power of Attorney

Copy of original or amended return, if available

The RO or ACS employee enters the date of receipt of the CDP hearing request on the CDP transmittal document. Based on the data entered, a TC 520 with one of the following closing codes (cc) is input onto each tax period starting the suspension of the Collection Statute Expiration Date (CSED):

cc 76 for CDP lien case (DPLN)

cc 76 for combination CDP lien and levy case (DPL2)

cc 77 for CDP levy case (DPLV)

Responsibility for input of the TC 520 cc 76/77 is:

ACS for ACS-sourced cases

Account and Processing Support (APS) for RO-sourced cases

Appropriate Individual Master File (IMF) CSED indicators are also input with the TC 520. The indicators are:

P = primary Taxpayer Identification Number (TIN) spouse

S = secondary TIN spouse

B = both primary and secondary TINs

The CSED is systemically calculated and updated via the TC 520 and TC 521 entries. An exception to this systemic CSED update is an IMF account involving a joint income tax liability where only one spouse has requested the hearing.

The CSED is not suspended during an EH case, so a TC 971 AC 278 is entered onto each EH tax period.

IRS uses Automated Levy Programs (ALPs) through which select federal tax debts are matched with state taxing authorities and federal agencies disbursing funds, such as salary, pension, and vendor payments. See IRM 5.19.9, Automated Levy Programs (ACS), and IRM 5.11.7, Automated Levy Programs (Collection field) for more information about ALPs and the procedures used to administer the programs, which are divided into three categories:

Alaska Permanent Fund Dividend Levy Program (AKPFD) – attaches to the Permanent Fund Dividend distributed by Alaska

Federal Payment Levy Program (FPLP) – attaches federal payments to individuals or businesses

Municipal Tax Levy Program (MTLP) - matches a Master File database of delinquent taxpayers eligible to be levied against a database of local income tax refunds for each municipality participating in MTLP

State Income Tax Levy Program (SITLP) – attaches state income tax refund

The following TC 971 action codes identify ALPs and may appear in either CDP or EH cases:

TC 971 Action Code

Explanation

060

Input each time the account goes to FPLP

600

Input annually when in SITLP program

601

Input annually when in AKPFD program

In most instances, collection of the tax by levy is suspended on tax periods in a timely CDP levy hearing. The exceptions include:

Disqualified employment tax levy (DETL)

Systemic levy of a state income tax refund under SITLP

Systemic levy of federal contractors under FPLP

During an appeal to the Tax Court, where the underlying tax is not at issue, levy action may continue if the Tax Court determines that the IRS has shown good cause not to suspend the levy. Counsel contacts Collection if they are considering a motion to permit levy.

To collect the jointly owed tax from the non-requesting spouse where only one spouse has requested a CDP hearing.

When the IRS determines collection of the tax is in jeopardy

Type

Jeopardy Exception

Installment Agreement (IA)

Treas. Reg. 301.6159-1(f)(2): Paragraph (f)(1) of this section shall not prohibit levy if the taxpayer files a written notice with the IRS that waives the restriction on levy imposed by this section, the IRS determines that the proposed IA was submitted solely to delay collection, or the IRS determines that collection of the tax to which the IA or proposed IA relates is in jeopardy.

Offer in Compromise (OIC)

Treas. Reg. 301.7122-1(g)(3): The IRS may levy to collect the liability that is the subject of an offer to compromise during the period the IRS is evaluating whether that offer will be accepted if it determines that collection of the liability is in jeopardy.

Collection of the tax by levy is generally suspended on tax periods that are the subject of:

An EH

Timely-filed request for a CDP lien hearing if all pre-levy requirements are met

During a retained jurisdiction proceeding

Collection may deem levy action appropriate in a CDP lien or EH case if:

Collection is at risk (e.g., the taxpayer is dissipating assets or pyramiding additional liabilities)

The taxpayer raises only frivolous issues

The taxpayer is requesting an IA or OIC solely to delay the collection process

In such instances, Collection contacts the hearing officer's ATM by secure e-mail to advise levy action is planned and asks whether Appeals has information that may affect the decision to levy. The ATM responds within five days with yes or no response:

Yes, Appeals has information that levy would create an economic hardship for an individual taxpayer, or

Yes, Appeals has information that would prohibit levy absent a determination that collection of the tax is in jeopardy, or

No, Appeals has no information that would prohibit levy action

Collection may file an NFTL while a CDP lien or levy hearing is pending. Before doing so, they contact the ATM to advise of the planned action and to see if Appeals has any information that would affect the NFTL filing decision.

Collection cannot include an Affordable Care Act (ACA) individual shared responsibility payment (SRP) MFT 35 liability on an NFTL or proposed levy. As a result, MFT 35 periods should never be in CDP.

The issues for which the taxpayer requests Appeals consideration guide who in Appeals considers such issues. Generally, those responsible for conducting CDP hearings and considering technical issues include:

Appeals Account Resolution Specialist (AARS)

Appeals Officers (AO)

Appeals Team Managers (ATM)

See IRM 8.20.5, Carding New Receipts, and IRM 8.20.7, Closing Procedures, for APS processing of CDP and EH cases.

AOs conduct hearings by considering issues and alternatives to collection action in CDP cases. AOs are generally specialized to work either Examination or Collection issues.

AARS duties may include, but are not limited to:

Screening and developing cases for AOs

Monitoring cases in suspense

Working Separate Timeliness Determination cases

Scheduling appointments

Working certain less complex CDP/EH cases

The AARS may document the receipt of a case for screening and corrective actions taken. Verification actions during the screening process include:

Verification Action

Corrective Action

Request for hearing (Form 12153, Request for a Collection Due Process or Equivalent Hearing, other written request) was properly signed by the taxpayer or the taxpayer’s authorized representative

Contact the taxpayer or representative to 'perfect' the hearing request following procedures in IRM 8.22.5.2.3, Imperfect Hearing Request

Ensure information on Case Summary Card is accurate

Type of hearing

Type of tax and tax periods match CDP Notice

Statute suspension IDRS TC 520 and closing code 76/77 on a timely request was correctly input on CDP periods

Statute suspension TC 520 and closing code 76/77 was not placed on EH periods

The WUNO contains the correct ACDS feature codes - see IRM 8.22.5.2.2.3, Feature Codes

Work with APS to correct Case Summary Card errors

AARS may request a withdrawal of the CDP hearing using Letter 4388, Withdrawal Solicitation. See IRM 8.22.5.2.5, CDP Withdrawals.

The Fresno AARS team provides Customer Service on closed cases. The following are examples of problems that AARS can resolve:

IA, OIC and Currently Not Collectible (CNC)

Account freezes

Form 3870, Request for Adjustment, processing

Misapplied/Missing payment research

Innocent spouse allocations, including the mirroring process

Application of Tax Court decisions

Erroneous refunds

Unpostable TCs

Excess collections issues

AARS does not have the authority to change case determinations or decisions.

ATMs generally have supervisory responsibilities for AOs and AARS. ATMs review cases for completeness, accuracy and decision quality. ATMs have approval authority in most CDP cases. See Exhibit 8.22.4-1, Delegation Order Appeals-193-1.

ATMs are also responsible for monitoring compliance with ex parte communication requirements.

For guidance on ex parte communications between Appeals employees and employees of other IRS functions, see IRM 8.1.10, Ex Parte Communications, and Rev. Proc. 2012-18.

The objective of Fast Track Mediation (FTM) is to allow SB/SE Collection personnel and SB/SE taxpayers an opportunity to mediate their collection disputes with an Appeals official serving as a neutral party, or mediator. FTM is optional for the taxpayer and does not eliminate or replace existing dispute resolution options, including the taxpayer’s opportunity to request a hearing before Appeals. For guidance on FTM, see IRM 8.26.3, Fast Track Mediation for Collection Cases.

Authority

Delegated to

To conduct hearings and make determinations under sections 6320 and 6330 of the IRC (relating to notice and opportunity for hearing upon filing of notice of lien and before levy).

AOs

AARS

To review and approve determinations made under sections 6320 and 6330 of the IRC (relating to notice and opportunity for hearing upon filing of notice of lien and before levy), except in the case of any Form 12257, Summary Notice of Determination and Waiver of Judicial Review, that the Director, Operations Support, ) determines in writing does not require review and approval.

ATMs

To determine which Appeals employees may accept from the taxpayer, and execute on behalf of the IRS, Form 12257, Summary Notice of Determination and Waiver of Judicial Review

Director, Operations Support

Redelegations and Sources of Authority

Redelegation

Sources of Authority

The above authorities may not be redelegated.

IRC 6320

IRC 6330

26 CFR 301.6330-1

Pre-Conference Letters

Form/Letter Number and Name

Purpose

Letter 3846: Appeals Received Your Request for a Collection Due Process Hearing

Used when the taxpayer raises frivolous and non-frivolous issues.

Schedules telephone conference.

Offers taxpayer the opportunity to withdraw the frivolous positions.

Letter 4837: Substantive Contact Uniform Acknowledgement

Schedules a telephone conference.

Advises of opportunity to request an in-person conference.

Details supplemental information needed.

Letter 4000: Last Opportunity

Used if taxpayer fails to respond to Substantive Contact Letter to offer the taxpayer the mandatory second opportunity to provide information for consideration.

Letter 4380: Appeals Received Your Request for a Collection Due Process and/or Equivalent Hearing

Acknowledges a CDP submission raising only frivolous issues.

Solicits a withdrawal of the frivolous positions.

Withdrawal and Waiver Forms and Letters

Form/Letter Number and Name

Purpose

Form 12256 : Withdrawal of Request for Collection Due Process or Equivalent Hearing

Taxpayer withdraws from either CDP or EH.

Form 12257: Summary Notice of Determination and Waiver of Judicial Review

Taxpayer agrees with the resolution reached with Appeals and waives the right to judicial review.

Form 14041: Waiver of Right to Request New AO/SO

Taxpayer waives the prior involvement of an Appeals employee, allowing them to conduct the current hearing.

Letter 4382: Form 12257 Closing

Transmits the waiver Form 12257 to taxpayer.

Letter 4388: Withdrawal Solicitation

Solicits withdrawal where Collection resolved the taxpayer’s issue.

CDP Notice of Determination Letters and Attachment

Form/Letter Number and Name

Purpose

Letter 3193: Notice of Determination Concerning Collection Actions Under Sections 6320 and 6330

Issued in timely CDP cases.

Gives taxpayer the right to petition Tax Court for review of Appeals’ determination.

Sent separately to each joint filer with a copy to Power of Attorney, if applicable.

Letter 3978: Supplemental Notice of Determination

A supplemental CDP determination issued after the Tax Court has remanded a case to Appeals.

Letter 4389: Notice of Determination - Abatement of Interest

NOD in timely CDP hearing.

Provides the timeframe for filing for a petition for judicial review of the interest abatement issue.

Letter 4390: Notice of Determination - Request for Relief from Joint and Several Liability

NOD in timely CDP hearing.

Provides the timeframe for filing for a petition for judicial review of the innocent spouse issue.

CDP Attachment

Attachment template for the NOD and Decision Letter.

Equivalent Hearing Decision Letters and Attachment

Form/Letter Number and Name

Purpose

Letter 3210: Decision Letter on Equivalent Hearing under IRC Section 6320 and/or 6330

Decision in EH.

No right to petition Tax Court for a review of Appeals’ determination.

Sent separately to each joint filer with copy to Power of Attorney, if applicable.

Letter 4439: Decision - Equivalent Hearing & Innocent Spouse

Decision in EH.

Provides timeframe for filing a petition for judicial review of the innocent spouse issue.

Letter 4440: Equivalent Hearing and Interest Abatement

Decision in EH.

Provides timeframe for filing a petition for judicial review of the interest abatement issue.

Letter 5145: Agreed Equivalent Hearing Closing Letter

Agreed decision in EH cases.

CDP Attachment

Attachment template for the NOD and Decision Letter.

Other Closing Letters

Form/Letter Number and Name

Purpose

Letter 4381: Disregard CDP/EH Request

Disregards a frivolous/delaying hearing request.

Letter 4383: Collection Due Process/Equivalent Hearing Withdrawal Acknowledgement

Acknowledges taxpayer’s withdrawal of CDP/EH request.

Bankruptcy Case Forms

Form/Letter Number and Name

Purpose

Letter 5010: Collection Due Process Offer in Compromise Bankruptcy Return

Used by Appeals when an OIC is returned by Appeals due to taxpayer’s bankruptcy.

Compliance Function Referral Forms and Letters

Form/Letter Number and Name

Purpose

Letter 3820: Appeals Received Your Offer in Compromise and We Can Consider It

Generated by Appeals but mailed by Centralized Offer in Compromise (COIC).

Advises the CDP OIC has been sent to Collection and that the taxpayer will have an opportunity to respond.

Form 13933: Collection Due Process/Equivalent Hearing Offer in Compromise Cover Sheet

Used by Appeals to transmit a CDP OIC to COIC.

COIC uses the same form to acknowledge receipt of the OIC.

Collection Due Process (CDP) Hearing - TP Disputes TFRP Civil Penalty

Request for a copy of 1153 letter and proof of delivery.

Form 14111: Automated Substitute for Return(ASFR)/Substitute for Return (SFR) Cover Sheet

Cover Sheet for sending returns to ASFR/SFR unit for processing.

Letter 5208: Notification of Appeals Referral Investigation

Used by Appeals to notify taxpayers that information they provided to Appeals is being referred to Collection for evaluation.

AARS

Appeals Account Resolution Specialist

ABINT

Interest Abatement

ACA

Affordable Care Act

ACDS

Appeals Centralized Database System

ACM

Appeals Case Memorandum

ADR

Alternative Dispute Resolution

AKPFD

Alaska Permanent Fund Dividend (Levy Program)

AO

Appeals Officer (may refer to Collection or Examanination

AOIC

Automated Offer-in-Compromise (system)

APGOLF

Appeals Generator of Letters and Forms. APGOLF and APGOLF 2.0, are subsystems of ACDS, and contain a compilation of most of the letters and forms used by Appeals employees.

APS

Account and Processing Support, the unit responsible for the administrative processing of cases in Appeals.

AQMS

Appeals Quality Measurement System

ARI

Appeals Referral Investigation

ATE

Appeals Technical Employee

ATFR

Automated Trust Fund Recovery (system)

ATM

Appeals Team Manager

AUR

Automated Under Reporter

ASED

Assessment Statute Expiration Date

ASFR/SFR

Automated Substitute for Return/Substitute for Return

BAPCPA

Bankruptcy Abuse Prevention and Consumer Protection Act (2005)

BBA

Bipartisan Budget Act of 2015

"Big Three" Review

CDP requirement to verify the following:

that legal and administrative requirements were met

the issues raised

balancing of intrusiveness and fairness

CAP

Collection Appeals Program

CAR

Case Activity Record

CCISO

Cincinnati Centralized Innocent Spouse Operation

CDP

Collection Due Process

CDP Lien Notice

Refers to the notice issued to taxpayers to advise them of the CDP rights available when a notice of federal tax lien is filed.

CDPTD

Collection Due Process Timeliness Determination

CFR

Code of Federal Regulations

CI

Criminal Investigation

CML

Certified Mail List

CNC

Currently Not Collectible

COIC

Centralized Offer-in-Compromise

CSED

Collection Statute Expiration Date

CSO

Child Support Obligations

CZ

Combat Zone

DATC

Doubt as to Collectibility)

DATCSC

Doubt as to Collectibility with Special Circumstances)

DATL

Doubt as to Liability)

DETL

Disqualified Employment Tax Levy

DDIA

Direct Debit Installment Agreement

DIMS

Document Information Management System

DOJ

Department of Justice

eCase

Subsystem within ACDS that allows ACDS to electronically send, receive and store case data from the database of an IRS partner organization

EH

Equivalent Hearing

ESRP

Employer’s Shared Responsibility Payment

ETA

Effective Tax Administration

FICA

Future Income Collateral Agreement)

FORT

Field Office Resource Team

FTM

Fast Track Mediation

FPLP

Federal Payment Levy Program

FRIV

Frivolous Return / Submission / Issue(s)

IA

Installment Agreement

IBTF

In-Business Trust Fund

ICS

Integrated Collection System

IDRS

Integrated Data Retrieval System

IDT

Identity Theft

IRC

Internal Revenue Code

IRM

Internal Revenue Manual

IS

Innocent Spouse

ISTS

Innocent Spouse Tracking System

L&A

Legal and Administrative Procedure Review

MMIA

Manually Monitored Installment Agreement

MOIC

Monitoring Offer-in-Compromise

NOL

Net Operating Loss

OIC

Offer in Compromise

PENAP

Penalty Appeal

POA

Power of Attorney

PPIA

Partial-Payment Installment Agreement

RBA

Restitution-Based Assessment

RJ

Retained Jurisdiction

RO

Revenue Officer

RRAP

Rapid Response Appeal Process

SCL

Substantive Contact Letter

SITLP

State Income Tax Levy Program

SNOD

Statutory Notice of Deficiency

SRP

Shared Responsibility Payment

TDC

Taxpayer Digital Communications

TEFRA

Tax Equity and Fiscal Responsibility Act of 1982

TFA

Taxpayer First Act of 2019

TIPRA

Tax Increase Prevention and Reconciliation Act (2005)

USTC

United States Tax Court

VSD

Virtual Service Delivery

Webex

Video Conference Application

WUNO

Work Unit Number

(1) For uniformity, the table below provides naming conventions to be used when documents are attached electronically to ACDS:

Document

Document Number

Document Title

Description When Attaching to ACDS

ACSS/Collection File Initial Upload

ACSS/Collection File

Form

ACDS Update Request Form

ACDS Update Request

Form

30-40 Transfer Form

30-40 Form

Document

Appeals Case Memorandum or CDP Attachment

ACM

Document

Fax Cover Page - to TP

Fax to TP

Document

Fax Cover Page - to REP

Fax to REP

Form

12256

Withdrawal of Request for Collection Due Process or Equivalent Hearing

CDP Withdrawal

Form

12257

Summary Notice of Determination and Waiver of Judicial Review

CDP Waiver

Form

14111

Automated Substitute for Return (ASFR)/Substitute for Return (SFR) Cover Sheet

ASFR-SFR Routing Sheet

Form

14559

Appeals Offer in Compromise Memorandum

OIC ACM

Form

14561

Income and Expense/Asset Equity Calculation Table

IET/AET

Form

2209

Courtesy Investigation

Courtesy Investigation

Form

2261

Collateral Agreement

Collateral Agreement

Form

2261(A, B or C)

Collateral Agreement

Collateral Agreement (A, B or C)

Letter

3193

Notice of Determination Concerning Collection Actions Under Sections 6320 and 6330

NOD

Letter

3210

Decision on Equivalent Hearing Under IRC Section 6320 and/or 6330

Decision LTR

Letter

3846

Appeals Received Your Request for a Collection Due Process Hearing

SCL FRIV

Form

3870

Request for Adjustment

3870 Adjustment

Letter

3978

Supplemental Notice of Determination

Supplemental NOD

Letter

4000

Last Opportunity

Last Chance LTR

Form

433-A

Collection Information Statement for Wage Earners and Self-Employed Individuals

433-A CIS

Form

433-B

Collection Information Statement for Businesses

433-B CIS

Form

433-D

Installment Agreement

IA

Form

433-F

Collection Information Statement

433-F CIS

Form

4183

Recommendation re: Trust Fund Recovery Penalty Assessment

4183

Form

4340

Certificate of Assessments and Payments

Cert of Assessments

Letter

4380

Appeals Received Your Request for a Collection Due Process and/or Equivalent Hearing

FRIV ACK

Letter

4381

Disregard CDP/EH Request

FRIV Disregard

Letter

4382

Form 12257 Closing

12257 Closing LTR

Letter

4383

Collection Due Process / Equivalent Hearing Acknowledgement

Withdrawal ACK

Letter

4388

Withdrawal Solicitation

Withdrawal Solicitation

Letter

4389

Notice of Determination - Abatement of Interest

NOD ABINT

Letter

4390

Notice of Determination - Request for Relief from Joint and Several Liability

NOD IS

Letter

4439

Decision - Equivalent Hearing & Innocent Spouse

Decision LTR IS

Letter

4440

Equivalent Hearing & Interest Abatement

Decision LTR ABINT

Letter

4837

Substantive Contact Uniform Acknowledgement

SCL ACK

Form

4844

Request for Terminal Action

Terminal Action

Form

5402

Appeals Transmittal and Case Memo

5402 AO Signed

Form

5402

Appeals Transmittal and Case Memo

5402 ATM Signed

Form

5402

Appeals Transmittal and Case Memo

5402 - Dated - Final

Letter

5490

Appeals Offer in Compromise Acceptance

OIC Acceptance

Letter

5521

Offer in Compromise Acceptance - Doubt as to Liability

DATL OIC Acceptance

Form

656

Offer in Compromise

F656

Form

7429

Offer Acceptance Report

F7249

Correspondence to TP

CORR TO TP (MMDDYYYY)

Correspondence to REP

CORR TO REP (MMDDYYYY)

Correspondence to Third Party

CORR to Third Party (MMDDYYYY)

Correspondence from TP

CORR FROM TP (MMDDYYYY)

Correspondence from REP

CORR from REP (MMDDYYYY)

Correspondence from Third Party

CORR from Third Party (MMDDYYYY)

IDRS Prints

IDRS (SUMRY, TXMODA, ENMOD, etc.)

More Internal Revenue Manual

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