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Section 12. Monitoring Levy Payments — General
5.14.12  Monitoring Levy Payments — General
  • 5.14.12.1   Overview
  • 5.14.12.2   Systemic Monitoring of Non-Installment Agreement Continuous Levy Payments
  • 5.14.12.3   Manually Monitoring of Non-Installment Agreement Continuous Levy Payments
  • 5.14.12.4   Defaulted/Terminated Systemically Monitored Levy Received in the Field
5.14.12.1  (03-30-2002) 
Overview
  1. Continuous wage levies are monitored in status 60 on IDRS, but are not installment agreements. In order to ensure the distinction is maintained between continuous wage levies and installment agreements it is important that the procedures in this chapter are followed.
5.14.12.1.1  (07-12-2005) 
Monitoring Levy Payments
  1. If an active levy source is the only source of collection, Group Managers should approve monitoring levy payments as continuous levies by signature on Form 4844, Request For Terminal Action, after ensuring the procedures outlined below in IRM 5.14.12.2 (for systemic monitoring) or IRM 5.14.12.3 (for manual monitoring) have been followed.
  2. The following types of levies may be systemically monitored in Campuses (IRM 5.14.12.2) or monitored in Centralized Case Processing (IRM 5.14.12.3):
    1. Continuous levies on wages and salaries;
    2. Levies that attach to a taxpayer’s fixed right to a series of future payments. (See IRM 5.17.3.1.3 (2), Legal Reference Guide for Revenue Officers.)
  3. If levy payments are received:
    • monthly, then refer for monitoring after two consecutive levy payments have been received (at local management option these accounts may be transferred after one remittance, but only if payments will be of an equal amount and will be remitted on a monthly basis);
    • weekly, or bi-weekly (every two weeks), then refer for monitoring after 60 days (see IRM 5.14.12.2(2) for systemically monitored levies in this situation.)
  4. See IRM 5.1.11, Delinquent Return Accounts, and IRM 5.18, Liability Determination, regarding closure of delinquent returns prior to putting balance due accounts in continuous levy status.
    Reminder:

    Delinquent return (del ret) status and status 60 (installment agreement status) can coexist on IDRS; i.e. an entity can have an open TDI on one module and status 60 on other modules. Del rets (TDIs) do not default status 60 balance due accounts.

  1. Prior to transferring for systemic or Centralized Case Processing monitoring:
    1. ensure the payor (levy source) understands the levy remains in effect after the transfer;
    2. ensure the payor understands where to send payments;
    3. instruct the payor that payments should be written to " US Treasury" ; and,
    4. request that remittances (checks/drafts) show taxpayer name, taxpayer identification number (SSN or EIN) and tax periods included on the levy.
5.14.12.2  (07-12-2005) 
Systemic Monitoring of Non-Installment Agreement Continuous Levy Payments
  1. Levies that result in regular remittances of about the same amount, may be monitored systemically if the earliest CSED is further than 18 months in the future. Request a review date:
    • no more than five years in the future;
    • 18 months prior to the earliest CSED if the earliest CSED is at least 24 months in the future; or,
    • 9 months prior to the earliest CSED if the earliest CSED is less than 24 months in the future.
      Note:

      If fewer than 18 months remain prior to the CSED levies must be monitored in Centralized Case Processing. (See IRM 5.14.12.3(1)(f).)

  1. If the levy source sends payments on a weekly or bi-weekly (every two weeks) basis, the levy may be monitored systemically using the monthly total of these payments. In this situation, monitor payments for 60 days to ascertain the correct monthly total to be entered on the Form 4844.
    Note:

    If payment amounts vary use the lowest amount it is possible will be received on a monthly basis. The amount should not to be less than $10.

  1. Do not input TC 971 AC 063 on balance due accounts included in continuous levies.
  2. Document the case history: "Monitor Continuous Levy as IA."
  3. No TSIGN change is required for levy monitoring. Systemically monitored levies will be transferred to Compliance Service Collection Operation (CSCO) (formerly SCCB).
  4. Choose "Contin. Levy St 60" in Installment Agreement Option B on ICS.
  5. Complete Form 4844 (Request for Terminal Action.) as follows:
    1. Request input of Status 60.
    2. Write "Suppress Default and Payment Reminder Notices," on the form.
    3. Indicate the date of the month payments will be received.
    4. Write the amount of the payments.
    5. Indicate the frequency of payments.
    6. Record the name, address and telephone number of the employer/third party levied.
    7. Record the name, address and telephone number of the payor office (place from which payments are sent) if different than IRM 5.14.12.2(7)(f).
    8. IMPORTANT: Write: " Input Installment Agreement Locator Number 0208" on the Form 4844.
      Note:

      Input of Installment Agreement Locator Number 0208 identifies these accounts as continuous wage levies on the Installment Agreement Account Listing (IAAL) in Campuses. Proper identification of these accounts may result in fewer field case issuances on defaults.

  1. Attach a copy of Form 668W (Notice of Levy on Wages, Salary, and Other lncome)/Form 668A (Notice of Levy) to Form 4844, if a copy of the levy form is available. If unavailable, document the case history regarding this fact, and provide the reason the form is unavailable.
  2. Forward the case-file, a copy of the Form 668W/A (if available) the balance due account(s), with the approved Form 4844 attached to the top of the case file on Form 795B – Closure/Document Transmittal.
  3. Note that CSCO (formerly SCCB) will send Form 668-D, Release of Levy/Release of Property from Levy, one month prior to the account being fully paid advising the employer of the amount to remit to satisfy the levy.
  4. At the time of the review requested in IRM 5.14.12.2(1), Campus Installment Agreement Account Listing (IAAL) personnel will:
    • attempt to gain installment agreements that fully pay taxes. (See IRM 5.14.2.2 for exceptions);
    • consider other avenues of collection (including offers in compromise and partial payment installment agreements – [see IRM 5.14.2.2]); and,
    • consider recommending accounts be reduced to judgements.
5.14.12.3  (07-12-2005) 
Manually Monitoring of Non-Installment Agreement Continuous Levy Payments
  1. Some levies may not be transferred to CSCO (formerly SCCB) for systemic monitoring in status 60. Transfer continuous levies to Centralized Case Processing Support to monitor in the same way manually monitored installment agreements are monitored. Levies on the following types of levies and accounts must be monitored in Centralized Case Processing:
    1. NMF accounts;
    2. In-Business Trust Fund accounts;
    3. Levies which result in irregular payments;
    4. Levies which result in payments of different amounts;
    5. Levies on a spouse whose SSN is not the balance due account TIN;
    6. If fewer than 18 months remain prior to the earliest CSED;
    7. An unreversed TC 971 AC 065 is on a module (pending joint and several liability relief under IRC section 6015 claim);
    8. MFT 31 accounts; and,
    9. Levies on seasonal employees, unless payments will satisfy the balance due accounts.
  2. Do not input TC 971 AC 063 on balance due accounts included in continuous levies.
  3. Note the balance due account and document the case history: " Monitor Continuous Levy as IA."
  4. Choose "Cont. Levy Centralized Case Processing" in Option B under Installment Agreements in ICS.
  5. Clearly indicate all of the information in IRM 5.14.12.3(7)(a) through (f) below. This information will automatically generate a SPB item to Centralized Case Processing for monitoring.
  6. When the user selects this option (see IRM 5.14.12.3(4)) the sub code on the ICS entity screen will set to "902" , and the location field in the Name and Address will set to "LEVY" . Also the Agreement Locator Number (ALN) will set to "0208" .
  7. Record the following on Form 4844 (Request for Terminal Action):
    1. Assignment request: AOTOXX00. [See IRM 5.14.7.4.2.(15)];
    2. Date payments will be received (monthly);
    3. Amount that will be received (monthly);
    4. Frequency of payments [i.e. monthly, bi-weekly (every two weeks) or weekly];
    5. Name, address and phone number of levy source;
    6. Name, address and telephone number of payor, if different than IRM 5.14.12.3(7)(e) (payroll services, accountants, other fiduciaries).
  8. Attach a copy of Form 668W (Notice of Levy on Wages, Salary, and Other lncome)/Form 668A (Notice of Levy) to the Form 4844, if a copy of the levy form is available. If no copy of the form is available, document the case history regarding this fact, and provide the reason the form is unavailable.
  9. Forward the account, with management concurrence, to Centralized Case Processing.
  10. If fewer than 18 months remain in the statutory period for collection when the account is being transferred to Centralized Case Processing Support:
    1. Attach a transmittal document or buckslip to the case with the following information:  
      "CSED =_____" (insert date.) "No suit recommended."
    2. Record information regarding the CSED in the case history.
    3. Group Manager approval is required.
      Reminder:

      Group Manager approval is required. If there is no additional collection potential on the case, group managers should approve these transfers.

  1. Centralized Case Processing will monitor continuous wage levies to ensure payments are received timely. If payments are not received Centralized Case Processing will follow up with payors to determine the cause.
  2. Centralized Case Processing Support will send notice of levy release one month prior to the account being fully paid advising payors of amounts to submit to satisfy the levies. A notice of levy release will not be issued until:
    1. all balance due periods are fully paid; or,
    2. the last CSED is about to expire — release levies enough in advance to ensure no payments are received after CSEDs expire (also see IRM 5.14.12.3(13)); or,
    3. one of the criteria listed in IRM 5.11.2.2 is met (such as the levy is creating economic hardship.)
  3. Centralized Case Processing will use these procedures with regard to CSED cases assigned for monitoring:
    1. If one or more CSED expires, but remaining balance due periods included on the levy are within the statutory period for collection, do not release the levy.
    2. Monitor levy payments until all balance due periods included on levies are paid or the last CSED is about to expire (whichever is first.)
    3. If some balance due periods are fully paid, or the CSEDs expired and, as a result, the case now qualifies for systemic monitoring, follow the procedures in IRM 5.14.12.2. In this situation write on the face of the levy (688W/A)(if a copy is available): "The following period(s) have expired CSEDs:" (then list the appropriate balance due account periods.)
      Note:

      If a levy copy is unavailable record this information in the case history and ensure it also includes a list of the tax periods included on the original levy (and which tax periods have expired CSEDs.)

5.14.12.4  (07-12-2005) 
Defaulted/Terminated Systemically Monitored Levy Received in the Field
  1. Levy sources sometimes stop sending payments. This can be the result of intentional or unintentional actions by taxpayers or payors (levy sources). If Campuses or Centralized Case Processing Units cannot resolve issues on these cases they may be transferred to the field for followup action.
  2. Once these cases are assigned to the field:
    1. Continuous levy status cannot be reinstated;
    2. Determine why the payments stopped;
    3. If irregular payments are being received, then Manually Monitored procedures must be followed. (See IRM 5.14.12.3).
    4. If payments have begun again and the issue that caused the stoppage is resolved, follow the procedures in IRM 5.14.12.2 or IRM 5.14.12.3.
      Note:

      No new levy (668A/W) is needed if the levy source is the same. Complete F4844, and state why no copy of the levy is provided. If a new levy is issued to the same source, see IRM 5.11.1.3.7, "Repeat Levies on the Same Source" .

    1. Also input on Form 4844 the reason why the levy defaulted.
      Example:

      (entry for "Remarks" section of F4844:) " The taxpayer was ill for a month and this caused wages to be below exemption amounts."

    1. If payors (levy sources) refuse to make payments, determine if issuance of Form 668C (Final Demand) is appropriate. (See IRM 5.11.2)
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