part5-1

Group Managers will continually review information
gathering activities conducted by employees under their supervision and prepare
appropriate documentation that these reviews have been accomplished.

Conduct formal reviews of information gathering
activities in accordance with IRM 5.1.18, Locating Taxpayers.

Reviews of information gathering activities ensure:

Conduct reviews to the degree necessary to satisfy
the responsible official that there has been compliance with Service policy,
guidelines, and procedures.

Area Directors will provide that reviews are conducted
of area information gathering activities to ensure the areas are meeting their
responsibilities in identifying areas of noncompliance and adequately monitoring
and managing the areas information gathering activities.

Area Directors will determine the frequency of
reviews and the extent of documentation necessary to reflect the accomplishment
of these reviews.

Area Directors will coordinate reviews with Disclosure
Officers to ensure that the Privacy Act requirements are being observed in
accordance with IRM 11.3, Disclosure of Official Information.

Defer collection on the amount of the refund until
information about the check is received from Treasury. Follow up if a response
is not received within 90 days.

Proceed with collection on any remaining balance
above the refund amount.

If the taxpayer says the signature on the check
was forged or that the check was fraudulently negotiated, secure a signed
statement to this effect from the taxpayer and a copy (both sides) of the
cancelled check. Make two copies each of the cancelled check (both sides)
and the signed statement.

Forward the original of the statement and one copy of the cancelled
check (both sides) to the Campus Accounting function. Request that the accounting
function forward the information to the Financial Management Service (FMS)
for appropriate action. Request that you be informed of the action taken.

If FMS will not determine whether the taxpayers signature on the cancelled
check was valid or forged (e.g. the one year period in which FMS must act
against the bank has expired) and the Campus Accounting function does not
make a timely valid or forged determination, send a copy of the statement,
cancelled check (both sides), and a recently filed return signed by the taxpayer
to the Services forensic laboratory in Chicago for handwriting analysis .
Take action consistent with the handwriting analysis.

If it is determined that the taxpayers signature on the cancelled check
was forged and the monies from the refund were not received by the taxpayer,
the amount of the refund will only be restored to the taxpayers account if:

When third party information is required, transcribe
or request copies of the pertinent information. If you need to make and pay
for photocopies, claim photocopy fees on your travel voucher.

Provide taxpayers with a receipt for returns or
documents when requested by taxpayers or their representatives. Use an official
received date stamp to stamp a copy of the transmittal letter or a copy of
the return or document. Do not stamp a “duplicate”
which
is completed in pencil.

Maintain official “Received”
date
stamps in each office where it is necessary to record received dates, such
as for filed returns.

When not in use, protect assigned stamps against
unauthorized or indiscriminate use. Provide the stamp with HIGH SECURITY.
The stamp should contain the following elements:

Protect work related property and tax related
records in your custody against loss, theft, fire, destruction, alteration
and unauthorized disclosure.

To prevent theft and unauthorized disclosure,
do not leave work items, including remittances, unattended, even in IRS offices.
Convert cash payments to a bank draft or money order by the close of the business
day on which it is collected, or as soon as possible on the next business
day.

While in a home, keep work related property and
tax related data under personal observation or in a locked container or room
for protection.

When work related property and tax related data
needs to be kept in a car, lock the items in the trunk and lock the car. Exercise
judgment when deciding to store the work items in the car. If the car does
not seem to afford adequate protection, take necessary precautions to ensure
proper security.

Collection employees authorized to receive cash
from taxpayers should be aware of techniques for detecting counterfeit money.
Literature can be obtained from field offices of the Secret Service. These
offices can also arrange for lectures to groups of employees who receive cash
payments. Management should refrain from requesting the Secret Service to
instruct personnel on an individual basis.

If a taxpayer provides evidence that a remittance,
sent or given, to the IRS was altered, refer the matter to TIGTA, Regional
Inspector General for Investigations.

Evidence for referral includes:

Input Transaction Code (TC) 470, and forward the
referral to the nearest TIGTA Office. TIGTA will conduct an investigation
and report the results of the investigation to the area director.

Notice 609 informs individuals of their rights
under the Privacy Act to privacy in non-criminal investigations. This notice
is automatically sent to individuals with IMF return delinquency first notices:

Offices will furnish Notice 609 to taxpayers:

Mail out Notice 609 in a separate envelope when
it cannot be included with other correspondence directed to the taxpayer.

IRC 4424 restricts disclosure of an original,
copy, or abstract of a return, payment, or registration related to wagering,
or any record required for making such return, payment, or registration. This
includes information come at by the exploitation of any such document or record.

Section 6103(e)(8) provides for disclosures pertaining
to deficiencies assessed with respect to persons who have filed jointly but
are no longer married or no longer reside in the same household. IRC 6103(e)(8)
provides that, upon written request, certain limited information regarding
one spouse must be disclosed to the other spouse, in writing, relative to
tax deficiencies with respect to a jointly filed return. IRC 6103(e)(8) does
not apply to deficiencies that may not be collected by reason of IRC 6502.

A written request, submitted by the taxpayer or
the taxpayers authorized representative, is required if the taxpayer desires
a written response pursuant to IRC 6103(e)(8). The information provided under
IRC 6103(e)(8) may also be provided under IRC 6103(e)(1)(B) in conjunction
with IRC 6103(e)(7) without a written request.

IRC 6103(e)(9) provides for disclosure to one
person who has been assessed the trust fund recovery
penalty (TFRP) pursuant to IRC 6672, certain limited information regarding
other persons assessed the penalty for the same underlying
tax. IRC 6103(e)(9) is effective for requests received after July 30, 1996.

Disclosures pursuant to IRC 6103(e)(9) may be
made only upon receipt of a written request. Such request must be signed by
the person actually assessed the TFRP or his/her duly authorized representative.

Disclosures should be limited to the specific
tax periods associated with the assessed requestors
TFRP. Not all responsible officers receiving the penalty are assessed for
the same periods. See the general rules as outlined in IRM 11.3, Disclosure
of Official Information.

Disclosures made pursuant to IRC 6103(e)(9) shall
be made in written form upon receipt of a proper written request from a person
who has been assessed the penalty or their duly authorized representative.
The disclosure will be limited to the specific tax period associated with
the requesters TFRP and may include:

Information that cannot be disclosed in response
to a request pursuant to IRC 6103(e)(9) includes the following:

The Service is authorized to develop procedures
relative to controlling the frequency with which any requester can make requests
pursuant to IRC Section 6103(e)(9). Until such procedures are developed at
a national level, Service personnel should follow locally developed procedures.

If the case is not assigned to a revenue officer,
the information will be provided by Technical Support, Case Processing Support
or Insolvency Support, depending on the status of the case. Disclosure may
only be made by personnel so authorized under the most current revision of
Delegation Order 156.

If one responsible party believes there are unexplored
sources of collection from other parties, accept and process the information
as appropriate. Do not inform the other parties of the results, other than
as indicated in (1) above.

Requests for collection information in 6672 cases
which cannot be disclosed under 6103(e)(9) should be referred to the Disclosure
Officer, or the taxpayer or the taxpayers representative should be instructed
to make a Freedom of Information Act request.

IRS Regulation 26 CFR 301.6103(c)-1(c) authorizes the IRS to accept
non-written requests or consents authorizing the disclosure of return information
to third parties assisting taxpayers in resolving Federal tax related matters.
Only the taxpayer or his/her authorized representative, who has been previously
given the authority by a Power of Attorney to appoint other designees, can
give an Oral Disclosure Consent. This change is significant for hearing impaired
or non-English speaking taxpayers who may contact you through a relay operator
or other third person. You should complete the same disclosure verification
as if you were talking directly to the taxpayer.

Oral Disclosure Consents may be taken from taxpayers, or his/her authorized
representative, who have open account issues or to whom some type of notice
has been issued from IRS. The disclosure of return information must be limited
to the information covered in the verbal consent and disclosure can only be
made to third parties helping taxpayers resolve a Federal tax matter. The
Oral Disclosure Consent expires when the account issue is closed. To record
an Oral Disclosure Consent for a taxpayer inquiry refer to IRM 21.1.3.3.2

Such disclosures shall not be made unless the request or consent is
received by the Internal Revenue Service, its agent or contractor, or a Federal
government agency performing a Federal tax administration function in connection
with a request for advice or assistance relating to such function. This procedure
does not apply to disclosures to a taxpayers representative in connection
with practice before the Internal Revenue Service (as defined in Treasury
Department Circular No. 230,31 CFR part 10).

Ensure all parts are complete and signed by the representative and taxpayer.

Mail or fax Form 2848 or Form 8821 to the appropriate Centralized Authorization
File (CAF) campus in Memphis, Ogden, or Philadelphia (International) depending
on the taxpayer’s state of residence. See IRM Exhibit 21.3.7-3, CAF
Units and State Mapping, to determine which campus should receive the third
party authorization. The appropriate campus information is also included on
the Instructions for Form 2848 or on Page 2 of Form 8821. Per IRM 21.3.7.4(3),
IRS employees should forward authorizations which qualify for recording within
a recommended 24 hours of receiving validating information on the form.

Document the case history with the date and campus where the form was
faxed or mailed. Retain a copy in the case file; if the authorization was
faxed, retain the original in the case file.

Retain the original third party authorization
in the case file if it is:

Request a statement from the taxpayer or the taxpayers
representative cancelling an existing third party authorization.

Note the area office name or area office code
at bottom of cancellation where cancellation was received by the Collection
function.

Review cancellation to ensure basic information
is correct.

Send statement of cancellation to CAF Unit at
the appropriate campus.

Third party authorization documents are maintained
on an automated Centralized Authorization File (CAF). The CAF consists of
taxpayer records and representative records.

IDRS Command Code CFINK may be used to research
third party authorization files.

Researching CFOL Command Code CAFOL will access
CAF files nationwide.

The CAF system will automatically direct copies
of notices and correspondence to the authorized individuals.

Qualified representatives shall receive any notice
or other written communication required or permitted to be given to the taxpayer
in the matter concerning the taxpayer. If there is more than one representative,
notice to one representative is sufficient.

Upon written request, furnish to the taxpayer’s
representative notices and written communication issued to the taxpayer concerning
offers in compromise and trust fund recovery penalty assessments.

Furnish only copies of taxpayer communications
to the taxpayer representatives that have a direct bearing on the nature of
his/her representation.

Form 8655, Reporting Agents Authorization, maintained
on the Reporting Agents File (RAF) authorizes reporting agents to sign and
file federal employment tax returns and/or make federal tax deposits for the
taxpayer. Agents may also receive copies of notices, correspondence, and/or
transcripts relating to the returns filed by the agent.

Form 8655 does not grant authority that allows
a revenue officer to disclose the details of a case. However, since the Reporting
Agent is involved in the filing of the tax returns and/or the payment of the
taxes, they often have the information needed to resolve an open case. A revenue
officer should readily take documentation provided by a Reporting Agent and
then determine if it can be used in working the related case.

The Office of Professional Responsibility (OPR):

OPR may censure, suspend, disbar from practice before the IRS, any tax
practitioner who is shown to be incompetent or disreputable, or who fails
to comply with any part of Circular 230, or, with intent to defraud, willfully
and knowingly misleads or threatens a client or prospective client. OPR also
may impose a monetary penalty against a practitioners for violations of Circular
230, or against a practitioners employers or other entity if the employer
or other entity knew of, or reasonably should have known, of the misconduct.
IRS employees have an obligation to report suspected practitioner misconduct
to OPR. See IRM 5.1.1.7.6.2 for procedures for reporting suspected practitioner
misconduct.

OPR will consider patterns of inappropriate conduct in determining whether
to bring a disciplinary action against a practitioner. Three common patterns
are outlined in IRM 5.1.1.7.6.1.

Because practitioner abuse also may be an indicator of potential fraud,
it may be appropriate to discuss practitioner misconduct with your Fraud Tax
Advisory (FTA). Additionally, decisions to refer the practitioner to the Treasury
Inspector General for Tax Administration (TIGTA) or the Fraud program for
potential criminal sanctions must be clearly documented on any OPR referral.

Suspected post-employment violations under section 207 of title 18 of
the United Stated Code should be reported to the appropriated management officials
who, after consultation with the office of the Associate Chief Counsel (General
Legal Services), Ethics and General Government Law branch, may refer the matter
to TIGTA for investigation.

Where a recognized representative has unreasonably delayed or hindered
an examination, collection, or investigation by failing to furnish, after
repeated request, non-privileged information necessary to the examination,
collection or investigation, the Internal Revenue Service employee conducting
the examination, collection, or investigation may be given permission to by
pass the representative and contact the taxpayer directly for such information.
26 C.F.R. § 601.506(b) (Statement of Procedural Rules).

Collection personnel often can use appropriate enforcement actions to
obtain the information necessary for collection in a timely manner without
bypassing the representative even when the representative unreasonably delays
or hinders collection. For example, the necessary information may be obtained
by contacting third parties (without issuing a summons) or by issuing summonses
to third parties or the taxpayer for the necessary information. In such cases,
it is not necessary to bypass the representative. Representatives may not
be bypassed simply because the employee wishes to interview the taxpayer.

It may be necessary, however, to bypass the representative when the
representative has unreasonably delayed or hindered collection by, for example,
repeatedly:

When instances of unreasonable delay or hindrance are first encountered,
management involvement should be sought. Thereafter, it is suggested that
all appointments with the representative be confirmed in writing and that
all document requests be in writing. All instances of unreasonable delay or
hindrance should be documented in the case file. All actions taken by the
employee in response to the unreasonable delay or hindrance should be similarly
documented.