COLLECTION PROCESSING
&
TAX RETURNS

TAX DELINQUENCY INVESTIGATION (TDI)

The IRS receives income information paid to the taxpayer {e.g., wages, interest, retirement, and

miscellaneous income} from employers and financial institutions. When taxpayers fail to file a return

reporting income they received, the account falls into a delinquent status. The Return Delinquency Section

sends a series of notices to the taxpayer requesting the return. Both individual and business taxpayers

receive the following notices: CP515, CP517, and CP518. If a taxpayer claims the return was previously

filed, a signed copy of the return should be sent to the service center to be processed as an original. [Note:

An original signature must be on the copy.] If the account remains unresolved, it will be forwarded to the

Automated Collection System (ACS), where a determination is made to forward it to either the Automated

Substitute for Return (ASFR) {for individual accounts} or the 6020(b) program(s) {for business

accounts}.

 

TAX DELINQUENCY ACCOUNT (TDA)

Accounts that are not full paid after tax returns are processed, or when additional tax has been assessed,

will trigger a series of Computer Paragraph (CP) balance due notices, starting with the initial balance

due notice. The first notice requests payment in full. Taxpayers who are unable to pay the full amount are

asked to contact the IRS immediately by telephone or in writing with a proposal for payment. If taxpayers

do not respond to the first notice, the notice routine continues. Taxpayers can intervene at any time during

the notice cycle. Without intervention, however, the final notice, CP504, is ultimately issued subjecting the

account to enforced collection action. This notice advises the taxpayer a levy or lien may be attached to the

taxpayerís property or rights to property.

 

AUTOMATED COLLECTION SYSTEM (ACS)

Once an account has gone through all the notice routines, it may be forwarded to the Automated

Collection System. ACS is an electronic inventory system that stores Taxpayer Delinquent Accounts

(TDA) and Taxpayer Delinquency Investigations (TDI). The ACS call site operation primarily makes

telephone contact with taxpayers or their authorized representatives to resolve the unpaid balances and

secure any returns that have not been filed. The ACS call sites 1) initiate outgoing telephone

calls, 2) attempt to locate taxpayers and their assets, and 3) respond to taxpayer correspondence, make

adjustments and work cases requiring special handling, such as deceased taxpayers and/or taxpayers

who have filed bankruptcy. ACS tax examiners have the authority to levy bank accounts, wages, and

accounts receivable. They also make lien determinations. Service centers are responsible for supporting

their respective call sites and districts. The Service Center Collection Branch (SCCB) supports the call sites

by performing numerous tasks, such as processing letters, levies, and liens; processing responses to

levies; researching suspense files; and taking appropriate action on responses from taxpayers.

{Note:The FSC Callsite is one of two call sites located in a service center; therefore, ACS employees

do not request follow-up actions from SCCB. The FSC Callsite has SCCB expertise and performs these

tasks.}

 

HOURS OF OPERATION

Most of the sites are set to work a 64-hour week; however, hours do vary. Letters sent to taxpayers

serviced by the Fresno Site advise calling between 8:00 a.m. and 8:00 p.m. If a call is received before 8

a.m. or after 8 p.m., an ìhours of operationî message will play which means the site is closed.