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Section 6. Multi-functional Installment Agreement Authority

5.14.6 Multi-functional Installment Agreement Authority

5.14.6.1 Overview
5.14.6.2 Multi-functional Agreements
5.14.6.3 TC 971 Inputs by Examination

5.14.6.1 (03-30-2002)
Overview

IRM 5.14, Installment Agreements, is primarily for use by Collection contact personnel. In addition, it is referenced by other functions for installment agreement policy and procedures. This chapter provides cross-functional authority to grant installment agreements and references actions necessary in the installment agreement process. Collection personnel should reference this chapter to learn about other functions’ installment agreement authority, and the types of assistance other functions may request.

5.14.6.2 (07-12-2005)
Multi-functional Agreements

The authority to grant installment agreements has been extended to other contact functions within the Service to improve one-stop service, reduce taxpayer burden, encourage voluntary compliance and utilize resources more effectively. The functions are: Appeals, Tax Exempt and Government Entities, Examination, Taxpayer Advocate, Submission Processing, and Field Assistance.

Note:

IRM 5.19 provides procedures for Campuses, ACS and toll-free.

Multi-functional installment agreement authority is limited to certain types of accounts with an aggregate unpaid balance of assessment less than or equal to $100,000.

The types of accounts this authority is limited to are individual accounts, corporate accounts in which the only open periods are Form 1120 modules, and out of business sole proprietor accounts.

Note:

(1) The limitation on dollar amount does not apply to agreements Appeals can consider under Collection Due Process or the Collection Appeals Program. (See IRM 8.7.2.4.2.1(3), Appeals Technical and Procedural Guidelines).

Note:

(2) Multi-functional installment agreement authority does not extend to granting agreements in accordance with the procedures provided in IRM 5.14.2.2 (partial payment installment agreements.)

See streamlined installment agreement procedures for accounts with an aggregate unpaid balance of assessments less than or equal to $25,000, in IRM 5.14.5.2.
See guaranteed installment agreement procedures for accounts with income tax only of $10,000 or less, in IRM 5.14.5.3.

Note:

This authority is limited to individual income tax accounts.

See In-Business Trust Fund Express for accounts with an unpaid balance of assessment of $1,500 or less, in IRM 5.14.5.4.

Note:

This authority is limited to in-business BMF accounts.

Multi-functional authority to grant extensions of time to fully pay is limited to accounts with aggregate unpaid balances of assessment less than or equal to $100,000. Extensions may be granted for up to 120 days. (See IRM 5.14.5.5 regarding Extensions of Time to Pay.)
The multi-functional installment agreement authority levels apply to assessed and pre-assessed account including taxpayers who state an inability to pay when they file their return timely or late.
If taxpayers do not qualify for guaranteed, streamlined or Express installment agreement processing, a CIS is required. Financial analysis may be done by the function initiating the agreement if sufficient expertise exists. (See IRM 5.15 regarding financial analysis.)
Financial statements—on those cases which do not qualify for guaranteed, streamlined, or Express processing —require verification of income and expenses. Verification may be done by the function initiating the agreement if sufficient expertise exists. Research of local property records regarding real property, personal property and motor vehicle ownership is not required.
See IRM 5.14.1.5.2 regarding lien filing. Lien filings will be requested from the Collection function on Form 4844, Request for Terminal Action, or other locally developed forms.

Reminder:

If a Notice of Federal Tax Lien (NFTL) is to be filed, the taxpayer must have been advised in advance.

If the function initiating the agreement is not able to conduct financial analysis or verification, assistance will be sought from Collection personnel, or the taxpayer will be referred to Collection. The function initiating the agreement may assist the taxpayer in completing the CIS before referring the taxpayer to Collection.
Upon identification of an installment agreement request, the case-file will be noted that an installment agreement is "pending." (See IRM 5.14.1.3 regarding criteria necessary for identification of " pending" status.)
If a CSED extension is appropriate see IRM 5.14.2.1.
Installment agreements will be approved by functions that initiate agreements. Completed forms will be routed as follows:

All field functions initiating installment agreements will route completed forms to Centralized Case Processing.
Appeals may input installment agreements secured within its function according to local guidelines.
If the function initiating the agreement is not located in an area office or has made arrangements to send completed forms directly to a Campus, then completed forms will be routed to Compliance Service Collection Operation (CSCO)(formerly SCCB) for processing.
If a Campus secures an original installment agreement and Form 900 waiver, copies of both forms will be forwarded to the Centralized Case Processing function in the area where the taxpayer resides.

If an account does not fall within the multi-functional guidelines or a function is unable to grant an installment agreement for any reason, assistance will be sought from the Collection function or the taxpayer will be referred to Collection.
If the proposed installment agreement cannot be granted due to the taxpayer ’s non-compliance with depositing or estimated tax payment requirements; failure to provide information, (given a reasonable deadline);, then the procedures in IRM 5.14.9.3 and IRM 5.14.9.4 should be followed before the case is referred to field revenue officer groups. See IRM 5.19.1.5.4.1.
Local procedures should be developed by SB/SE Area Collection functions to accommodate other functions seeking assistance. Collection is responsible for the administration of installment agreements.

5.14.6.3 (09-30-2004)
TC 971 Inputs by Examination

Accounts under examination require special handling.

Examination employees will ensure a TC 971 AC 043 is input on IDRS within 24 hours of the taxpayer’s request for an IA (see IRM 5.14.1.3), and note activity records regarding the IA request and TC 971 request date. Form 3177, Notice of Action for Entry on Masterfile, or Form 4844, Request for Terminal Action, is used to request IDRS input of TC ’s 971 and 972. Examination Input functions must maintain copies of completed forms in accordance with Internal Revenue Manual (IRM) 1.15.2, Records Disposition.
If taxpayers disagree with examination changes, then Examination employees will note Form 3198, Special Handling Procedures: "Taxpayer requested an IA" . This will notify Appeals to finalize and/or coordinate IA requests once examination issues are resolved. If no deficiency results, Appeals will ensure reversal of the TC 971 (see paragraph " d" below).
For agreed deficiencies over $25,000 (above streamlined authority), Examination employees will complete Form 9465, IA Request and forward it to the appropriate Campus. If possible, Examiners should request that taxpayers complete Collection Information Statements and attach these to IA requests (Form 433A or 433F individuals, Form 433B for businesses.) Examiners are not required to verify information on Forms 433.
If TC 971 AC 043 is input, but a deficiency assessment is not recommended, Examination employees should ensure input of TC 972 AC 043 to reverse the TC 971.
If IDRS reflects a TC 971, AC 043 and notices are issued to taxpayers (or accounts are assigned for collection) follow-up action should be taken. Consider installment agreement requests — indicated by TC 971 AC 043 — regardless of which function received the request. Note that TC 421 (Reverse Examination Indicator) means the account is no longer under examination.