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Part 5. Collecting Process

Chapter 14. Installment Agreements

Section 8. Monitoring of Installment Agreements

5.14.8  Monitoring of Installment Agreements

5.14.8.1  (09-26-2008)
Overview

  1. The Integrated Data Retrieval System (IDRS) is used to monitor most Installment agreements for timely payments on accounts, as well as to determine whether taxpayers remain in compliance with current filing and paying requirements. IDRS also monitors agreements based on the locator numbers recorded at the time agreements are input. (Exhibit 5.14.1–2) Some agreements require special monitoring, such as when accounts reside on the Non-Masterfile (NMF) or if payment amounts are varied. These accounts must be manually monitored.

5.14.8.2  (09-26-2008)
IDRS Monitoring

  1. Follow ICS on-screen and help screen instructions to ensure installment agreements are routed properly for IDRS monitoring.

  2. Use IDRS to monitor installment agreements for IMF, out-of-business BMF, or in-business BMF modules in either notice or balance due status meeting these criteria:

    1. the payment must be for a fixed amount;

    2. the agreement must be monthly because even though payments may be submitted more often, IDRS monitors monthly; (any other than a monthly payment increment should be processed as a manually monitored installment agreement);

    3. all payment due dates are limited to calendar days 1 through 28.

  3. To allow for timely input to IDRS, agreements should call for first payments at least 30 days after the date agreements are input. If an earlier payment is required, hold the case for the first payment, then forward for IDRS input and monitoring.

  4. If a payment is received in the area office on an IDRS-monitored installment agreement, use Designated Payment Code (DPC) "99" on the posting document. Refer to Document 6209 for information on the use of Designated Payment Codes.

  5. Campuses may use status 60 to monitor extensions of time to pay.

5.14.8.3  (09-26-2008)
Non-IDRS Monitoring – Manually Monitored Installment Agreements

  1. Certain assessments and agreements are not compatible with IDRS monitoring. The types of agreements listed below must be manually monitored in Centralized Case Processing to ensure compliance with the terms of agreements:

    1. NMF assessments in either notice or balance due status;

    2. agreements calling for variable or percentage amounts;

    3. agreements with irregular payment intervals;

    4. agreements secured from two or more parties at different addresses on the same liability (e.g. divorced taxpayers, partnerships, etc.);

    5. L Freeze modules during pending Joint and Several Liability Relief Under IRC section 6015 claims;

    6. any other agreement not compatible with IDRS monitoring.

  2. The agreements specified in IRM 5.14.8.3(1) (a) through (f), will be manually monitored by Centralized Case Processing Support.

    Reminder:

    Centralized Case Processing monitors all In-Business Trust Fund Accounts, and all agreements approved in accordance with the procedures provided in IRM 5.14.2.1

  3. Taxpayers should be furnished an adequate supply of pre-addressed envelopes and advised that no reminder notices will be issued.

  4. See IRM 5.14.11 for procedures on defaulted and terminated manually monitored installment agreements.

  5. When posting payments to manually monitored installment payments, use DPC "10" on posting documents. This code is designed to allow accumulation of data on these non-IDRS monitored agreements. See Document 6209 for information regarding other designated payment code indicators.

  6. Follow the procedures in IRM 5.14.7.3.2 (1) through (4) regarding approval of, and monitoring of, IBTF cases.

  7. Select "MMIA — Centralized Case Processing" in either Option A or Option B of ICS Installment Agreement pick list. (See IRM 5.14.7.3.2(5) for IBTF Cases.)

  8. Choose the appropriate Agreement Locator Number (ALN). ICS will automatically set the subcode to "901" and the location to "MMIA" .

  9. Follow the procedures in IRM 5.14.7.3.2(6) and IRM 5.14.7.3.2(7).

  10. ICS Installment Agreement Option A is used when no Form 433D has been prepared nor approved prior to submission of the agreement for approval on ICS. Approval by the group manager using ICS Installment Agreement Option A generates:

    1. Transaction code (TC) 971 Action Code (AC) 063, (see IRM 5.14.7.3.2(6));

    2. Approval notification to the revenue officer;

    3. An original and copy of the Form 433D ; and

    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.

  11. ICS Installment Agreement Option B should be used if a hard copy Form 433D was prepared and approved outside of ICS. Option B does not generate the systemic information discussed in IRM 5.14.8.3(10)(c) & (d). Status 60 is not input on manually monitored installment agreements. The modules will remain open on ICS and will be transferred to Centralized Case Processing for monitoring. Also, use of Option B requires that the contact employee complete the following actions after manager approval:

    1. Forward approved agreements to Centralized Case Processing along with the original case file.

    2. To ensure proper disposition, write "Manually Monitored IA" on the routing slip or transmittal document, as well as on the agreement form itself.

    3. Follow the procedures in IRM 5.14.7.3.2.

      Caution:

      Choose Option B only if, and after, hard copy (non-ICS generated) 433D or 2159 was approved.

5.14.8.4  (07-06-2005)
Actions Necessary After Full Payment of Cases Monitored in Centralized Case Processing

  1. All installment agreements that are fully paid will be closed appropriately by the employee handling the file.


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