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13.1.7.2
(07-23-2007)
TAS Case Criteria
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A taxpayer contact that meets any of the criteria listed below should be worked by TAS:
Reminder:
Taxpayers do not need to document their hardship to be accepted into the TAS program. Case Advocates will need to document
the hardship in the course of developing the case and determining what relief is appropriate.
Note:
TAS will track some cases instead of working them. These types of cases will be identified on TAMIS with tracking code zero
(0) recorded in the Case Criteria Field. For example, TAS cases to be worked by Governmental Liaisons will be identified on
TAMIS with a zero in the Case Criteria Field.
13.1.7.2.1
(08-24-2007)
TAS Case Criteria 1 – 4, Economic Burden
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Criteria 1 - The taxpayer is experiencing economic harm or is about to suffer economic harm. The economic harm may be the
result of actions by the IRS or created as a result of circumstances in the taxpayer's personal life.
IRC § 7811(2) outlines three examples of significant hardship that are categorized below as Case Criteria 2, 3 and 4. Economic
Harm situations that require TAS's assistance but do not fall under these criteria will be captured under Case Criteria 1.
Note:
Be careful not to confuse "economic harm"
with "economic hardship."
The term "economic hardship"
has significance in IRC § 6343, Authority to release levy and return property.
Example:
A taxpayer’s return has been selected for examination based on the claim for Earned Income Tax Credit (EITC). The taxpayer
is expecting a $3,000 refund but cannot wait for the completion of the examination, as the taxpayer has a serious medical
condition and no health insurance. She needs the money to pay for prescription drugs and nonelective surgery. This case should
be accepted into the TAS program as a Criteria 1 case.
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Criteria 2 -- The taxpayer is facing an immediate threat of adverse action. Most situations will involve an action by the
IRS, such as the filing of a Notice of Federal Tax Lien, the service of a Notice of Levy or the seizure of property. Threat
of adverse actions can also involve the taxpayer's personal situations, such as utility cutoffs or evictions. Such actions
may result in negative financial consequences or economic burden to the taxpayer. A warning of impending action that will
negatively impact the taxpayer is considered a "threat."
An immediate threat is defined as an action that will take place unless there is an intervening action to stop the action.
Example:
On June 15, the taxpayer came to TAS with an eviction notice stating that he will be evicted on July if his rent is not paid.
The taxpayer is awaiting a refund of $2,000 on his 2006 Form 1040 income tax return. This refund will pay in full his arrearage,
thus preventing the eviction. This case would be accepted into the TAS program as a Criteria 2 because the threat of adverse
action exists (the eviction notice), and the threat is immediate (15 days).
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Criteria 3 -- The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).
Situations where the IRS is unable to immediately make adjustments, process returns, release a lien, etc., could result in
the taxpayer having to incur significant costs. Significant costs could include professional fees for assistance.
Note:
The Local Taxpayer Advocate (LTA) will determine what constitutes significant costs based on the facts and circumstances of
each case.
Example:
A corporate officer filed a form on behalf of the corporation to elect to be treated as an"S"
corporation rather than a "C"
corporation. The election request was not filed timely. If the corporation did not have reasonable cause for the failure
to timely make the S-corporation election, the IRS now requires a private letter ruling to make the change. There is a user
fee for private letter ruling requests (generally $10,000, although a reduced user fee is available depending on a taxpayer's
gross income), and the corporation would have to obtain representation to request and obtain the ruling. The corporate officer
states that this is a start-up business which does not have the cash flow to pay these costs. This case should be accepted
into the TAS program by the LTA as a Criteria 3 case.
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Criteria 4 --The taxpayer will suffer irreparable injury or long term adverse impact if relief is not granted. This includes
situations where a taxpayer may lose assets, income, or potential income if relief is not provided. Some situations include
loss of the ability to be licensed or bonded as part of the taxpayer’s occupation, or loss of borrowing power or clients due
to filing of a Notice of Federal Tax Lien. Other situations may involve damage to credit ratings resulting in denial of a
loan.
Example:
The taxpayer has a lien on his property due to an outstanding tax liability. He is trying to refinance his mortgage, which
would result in a lower monthly payment and would allow him to pay his outstanding tax liability. He has filed an amended
return which would eliminate the tax liability. The amended return has been selected for examination, but no action has been
taken. This case should be accepted into the TAS program as a Criteria 4 case.
13.1.7.2.2
(07-23-2007)
TAS Case Criteria 5 – 7, ""Systemic Burden"
"
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Criteria 5 -- The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.
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Where there is an established timeframe for a specific action based on an IRM, IRS form, or other official document, Criteria
5 is met whenthe problem or inquiry is delayed more than 30 days after the prescribed period. Refer to Exhibit 13.1.7-1, General Response Time Guidelines, for established normal response times on various (not inclusive)
issues.
Example:
Sixty days is the normal processing time for a Form 4506, Request for Copy of Tax Return, when the taxpayer is requesting
a copy of an actual return. If no response is received on the 90th day after filing Form 4506, the taxpayer's circumstance
meets Criteria 5.
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Where there is no established timeframe for a specific action based on an IRM, IRS form, or other official document, Criteria
5 is met when the problem or inquiry is delayed more than 30 days after the initial date the taxpayer made a request for IRS
assistance.
Example:
A taxpayer received an Examination determination from a Revenue Agent. On January 10, the taxpayer wrote to the IRS, requesting
an interest calculation so she could pay her account in full. On March 1, the taxpayer contacts TAS for the interest calculation
because she has not received a response to her letter. Since more than 30 days have passed from January 10, Criteria 5 is
met.
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Criteria 5 is met when the IRS sends multiple interim responses and no other actions by the IRS have been taken. Interim letters
can extend prescribed timeframes unless the delay is extensive or unreasonable. Judgment should be used to determine if the
Operating Division's or function's delay is justified or whether it is an unwarranted delay.
Example:
A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty on June 12. The taxpayer receives a response
from the IRS on July 1, acknowledging receipt of his letter and informing him that it will be another 30 days before his inquiry
can be answered. On July 27, the taxpayer receives another IRS letter stating that it will take an additional 8 weeks for
a reply. The TAS employee checks IDRS information and no action has been taken by the IRS on the taxpayer’s account other
than sending the second interim correspondence. The taxpayer’s circumstances meet Criteria 5.
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Delays due to taxpayer unresponsiveness will not meet Criteria 5.
Example:
A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty on June 12. The taxpayer receives a response
from the IRS on July 1, acknowledging receipt of his letter and requesting additional information by July 12 to abate the
penalty. On July 27, the taxpayer receives another IRS letter with a second request for information. The taxpayer has not
submitted any information for consideration. The taxpayer contacts TAS for assistance on August 1, stating the penalty has
not been abated. The TAS employee checks IDRS and determines from the history items that multiple requests for information
were sent to the taxpayer. The TAS employee asks if the taxpayer has received any contact from the IRS. The taxpayer states
he did receive a request for more information but has not mailed it in. This circumstance does not meet Criteria 5. However,
TAS should still explain to the taxpayer what information the IRS, in general, needs to make a penalty abatement.
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Criteria 6 --The taxpayer has not received a response or resolution to the problem or inquiry by the date promised.
Example:
The taxpayer has been in contact with the Correspondence Exam unit at an IRS Campus because of alleged unreported income.
The tax examiner requested substantiation of the taxpayer’s basis of some stock transactions. The taxpayer sent the information
5 weeks ago. The taxpayer received IRS correspondence acknowledging receipt of the information. The IRS correspondence also
indicated that a determination would be made and the taxpayer would be contacted by March 5. On March 7, the taxpayer contacts
the NTA toll-free number for assistance. The inquiry is accepted into TAS as a Criteria 6 case because the taxpayer was not
contacted by the promised date of March 5.
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Criteria 7 -- A system or procedure has either failed to operate as intended or failed to resolve the taxpayer's problem or
dispute within the IRS.
Example:
The IRS examined a taxpayer’s return in a prior year for EITC and subsequently allowed the credit. The taxpayer filed her
subsequent year return and the IRS failed to issue her refund. The taxpayer contacts TAS for assistance. TAS determines the
refund was held because the IDRS transaction code 810 indicator was never reversed as it should have been. The taxpayer’s
circumstances meet Criteria 7 because the IRS’s procedures for releasing a refund freeze failed to operate as intended.
Example:
A taxpayer writes to the IRS for an abatement of his federal tax deposit penalty and requests a credit elect to the next quarter.
IRS abates the penalty, but the overpayment has not been credited to the next quarter. The taxpayer’s circumstances meet Criteria
7 because the IRS’s procedures for crediting overpayments failed to operate as intended.
13.1.7.2.3
(07-23-2007)
TAS Case Criteria 8, Best Interest of the Taxpayer
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Criteria 8 -- The manner in which the tax laws are being administered raises considerations of equity or has impaired or will
impair the taxpayer’s rights.
Example:
The taxpayer disagrees with the proposed tax assessment. A notice of deficiency was issued without giving the taxpayer his
appeal rights.
Example:
The IRS assessed penalties and interest against a group of taxpayers whose returns were prepared by the same tax return preparer.
The return preparer deducted inflated expenses on the taxpayers' federal income tax returns to increase their refunds, on
which the tax return preparer based his fees. The taxpayers generally are self-employed, minimally educated, and speak English
as a second language. They trusted that the return preparer would accurately prepare their returns.
Note:
RRA '98 § 1203(b)(3) addresses violations of taxpayers' constitutional or civil rights by an IRS employee. The Treasury Inspector
General for Tax Administration (TIGTA) has responsibility for investigating such alleged violations. If you believe a taxpayer's
constitutional or civil rights were violated by an IRS employee, please refer to IRM 13.1.15, Customer Complaints / RRA98 Section 1203 Procedures.
13.1.7.2.4
(07-23-2007)
TAS Case Criteria 9, TAS ""Public Policy"
"
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Criteria 9 -- The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers. The
NTA has the sole authority for determining which issues are included in this criteria and will so designate by memo.
Example:
The NTA decided any inquiries related to the EITC Certification Initiative will be accepted into TAS, if no other criteria
apply.
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