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25.3.5.3
(09-19-2005)
Unassessed Liabilities
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Unassessed money judgments include erroneous refund judgments, judgments
for failure to honor a levy, judgments for unpaid employment taxes under IRC
§ 3505 or under the Miller Act or under third-party contract rights.,
judgments against transferees for liabilities not imposed under IRC § 6901,
judgments for sanctions or costs or fees that cannot be assessed under IRC
§ 6673(b), and judgments for restitution of amounts that cannot
be assessed.
25.3.5.3.1
(09-19-2005)
Responsibilities
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Requests for suits that result in unassessed judgments
are routed through Area Counsel to the Department of Justice (DOJ) Tax Division
and assigned to a trial attorney who is responsible for filing the suit and
obtaining the judgment. For approximately nine months after the judgment has
been entered, it is the responsibility of the trial attorney to attempt collection
of the judgment. If unsuccessful, DOJ Tax Division will close its case and
refer the judgment to the local United States (US) Attorney in the area in
which the debtor resides for further collection action. A copy of the referral
will be forwarded to Advisory.
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Advisory must follow up as appropriate on all
active unassessed judgments.
25.3.5.3.2
(09-19-2005)
Technical Services Advisory Procedures
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The US Attorney will coordinate with Area Counsel
(AC) and Advisory to ensure that collection efforts continue. In order to
maximize the collection of unassessed judgments, Advisory will take the following
actions:
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Upon receipt of a referral to Area Counsel from a Revenue Officer, Advisory
will assign the case to an advisor who will open an Other Investigation (OI)
on the Integrated Collection System (ICS) using case code 131, Suit by United
States of America. Once the judgment is granted, the OI will be closed and
a subsequent OI will be opened using case code 135, Judgments. When Area Counsel
receives a request to obtain an erroneous refund judgment directly from a
Campus, a copy of their initial referral to DOJ will be forwarded to Advisory
and the same procedures will be followed.
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The advisor is responsible for coordinating with the AC attorney and the
DOJ Tax Division trial attorney to offer assistance in obtaining and/or collecting
the judgment. This would include conducting investigations using all available
internal sources to determine if resources exist for satisfying the judgment.
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If the judgment is transferred by DOJ to the local US Attorney, the TS
advisor will assume responsibility for coordinating with Area Counsel and
Field Collection, if necessary. The advisor will conduct appropriate follow-up
contacts with the US Attorney's Office and/or the DOJ Financial Litigation
Unit to determine the status of collection efforts and to offer assistance
in locating assets to satisfy the judgment. The advisor will also take the
appropriate steps to ensure that any individual tax refunds of those named
in the judgment are offset to the unassessed judgment. Once assets are located
that can be seized in satisfaction of the judgment, this information will
immediately be communicated to the US Attorney. Follow-up actions by the TS
advisor should take place a minimum of every three months. Circumstances of
the case may warrant more frequent case activity.
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In the year preceding the expiration date of the
judgment lien, determine the taxpayer's potential earning capacity and request
refiling of the judgment if appropriate. Direct this request to the US Attorney.
Send a copy to the Judgment and Collection Unit in the Tax Division of the
Department of Justice. The US Attorney will confirm the refiling and advise
the Service of the new expiration date.
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Cases may be removed from active follow-up status
and ICS controls closed when it is determined that there is little or no potential
for the judgment to be satisfied.
25.3.5.3.3
(09-19-2005)
Revenue Officer Procedures
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Occasionally, revenue officer assistance will
be requested by the TS advisor. Generally, this will not occur on judgments
under $25,000. When necessary, the TS advisor will issue an OI requesting
that specific actions be taken by the revenue officer. This may include identifying
assets through public records research, or any other type of asset verification
deemed necessary, after the TS advisor has exhausted all available internal
sources.
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