Common Abbreviations Used in the IRM
Below is a list of common abbreviations used throughout this IRM.
AET – Asset Equity Table – A table listing all the taxpayers assets, encumbrances, and exemptions. It then calculates the equity which is included in the reasonable collection potential (RCP) calculation.
AOIC – Automated Offer in Compromise – Computer application where offers in compromise are recorded and monitored from receipt to closure. History of the offer investigations conducted by COIC employees and of actions taken by Monitoring OIC (MOIC) units are also maintained on this system.
ARI – Appeals Referral Investigation – A request from Appeals for assistance from the appropriate Collection function on verifying the accuracy of information reported on a CIS or assistance in completing the offers investigation.
ASED – Assessment Statute Expiration Date – The date the statutory period for assessing tax expires.
ATAT – Abusive Tax Avoidance Transactions – Abusive transactions taken by taxpayers to avoid paying, such as creating trusts, using off shore credit cards, etc.
CDP – Collection Due Process – Allows taxpayers a right to a hearing before Appeals regarding proposed collection enforcement actions or filed Notice of Federal Tax Lien.
CIS – Collection Information Statement – A financial statement listing assets, income, liabilities, and expenses submitted by the taxpayer. This financial statement can be submitted on Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B, Collection Information Statement for Businesses.
COIC – Centralized Offer in Compromise – Units located in Brookhaven and Memphis campus that complete initial processing and work less complicated offers to completion. Do not confuse this with MOIC – COIC units do not monitor or default accepted offers.
CSED – Collection Statute Expiration Date – The date the statutory period for collecting the tax expires.
DATC – Doubt as to Collectibility – Basis for acceptance of an offer where there is doubt that the tax can be paid in full.
DATL – Doubt as to Liability – Basis for acceptance of an offer where there is doubt that the liability is correct.
DCSC – Doubt as to Collectibility with Special Circumstance – Basis for acceptance of an offer where there is doubt that the tax can be paid in full and special circumstances exist that warrants accepting the offer for less than the reasonable collection potential (RCP).
ETA – Effective Tax Administration – Basis for acceptance of an offer where this is no doubt that the liability is correct or can be paid in full. However, requiring the taxpayer to fully pay the tax would either create an economic hardship or be a public policy/equity issue.
FICA – Future Income Collateral Agreement – An agreement secured in connection with an accepted offer that requires a taxpayer to pay a percentage of future income for a set number of years as additional consideration for acceptance of the offer.
FMV – Fair Market Value – The value a taxpayer would receive if an asset was sold to a willing buyer given time to obtain the best and highest possible price.
IA – Installment Agreement – An agreement under I.R.C. § 6159 to pay the liability over an established period of time.
IAR – Independent Administrative Reviewer – An independent third party who reviews a decision to reject an offer prior to that decision being conveyed to a taxpayer. This person is not in the chain of command of the employees responsible for the rejection of the offer.
IBTF – In Business Trust Fund – A taxpayer who is in business and owes trust fund (e.g. – Form 941) taxes.
ICS – Integrated Collection System – Computer application used by Compliance employees to monitor inventory. Histories of OIC investigations conducted by area office employees are maintained on this system.
IET – Income/Expense Table – A table that lists the income and expenses both claimed and allowed for purposes of calculating reasonable collection potential (RCP).
MOIC – Monitoring OIC Unit – Unit in Compliance Services located in a campus that completes end processing and monitoring of accepted offers.
NFTL – Notice of Federal Tax Lien – The notice of the filed Federal Tax Lien
NRE – Net Realizable Equity – Quick sale value less the amount owed on an asset.
OE – Offer Examiner – A tax examiner appointed as an offer investigator and located in COIC.
OI– Other Investigation – Form 2209, Courtesy Investigation, is used for District investigations in locating taxpayers or to gather information in collecting on assigned cases.
OS – Offer Specialist – A revenue officer appointed as an offer investigator, generally located in an area office.
PE – Process Examiner – A tax examiner who completes initial processability determinations on offers and is located in COIC.
PLET — Personal Liability for Excise Tax – Assessments made on individual taxpayers for withheld excise taxes.
POD – Post of Duty – Internal Revenue Service local office(s).
QSV – Quick Sale Value – The amount that could be obtained if an asset is sold quickly, usually less than FMV.
RCP – Reasonable Collection Potential – The amount that could reasonably be collected from the taxpayer.
TFRP – Trust Fund Recovery Penalty – Assessments made on individual taxpayers for the withheld or trust fund portion of delinquent employment taxes.
TIPRA – Tax Increase Prevention and Reconciliation Act of 2005 – Section 509 – Legislation enacted in May, 2006, which made major changes to the OIC program.
Are you confused about where to File Form 656 for your Offer in Compromise?
Follow the address list below. Residents of: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin or Wyoming: If you are a wage earner, retiree, or a self-employed individual without employees; then mail Form 656 and all attachments to:
Memphis Internal Revenue Service
Center COIC Unit
PO Box 30803 AMC
Memphis, TN 38130-0804 If you are other than a wage earner, retiree, or self-employed individual without employees; then mail Form 656 and all attachments to:
Memphis Internal Revenue Service
Center COIC Unit
PO Box 30804, AMC
Memphis, TN 38130-0804 Residents of: Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, or have a foreign address: If you are a wage earner, retiree, or a self-employed individual without employees; then mail Form 656 and all attachments to:
Brookhaven Internal Revenue Service
Center COIC Unit
PO Box 9007
Holtsville, NY 11742-9007 If you are other than a wage earner, retiree, or a self-employed individual without employees; then mail form 656 and all attachments to:
Brookhaven Internal Revenue Service
Center COIC Unit
PO Box 9008
Holtsville, NY 11742-9008 Where to File Form 656-L (Doubt as to Liability)
Brookhaven Internal Revenue Service
COIC Unit
PO Box 9008
Holtsville, NY 11742-9008
Has someone forged your name on a Tax Return? Maybe your spouse? What do you do?
When a spouse establishes his or her signature on a joint return was forged and there was no tacit consent to the return as filed, the joint election will be invalid.
Again, the relief from joint and several liability provisions do not apply. Why? Because the IRS will not accept the tax return once they become aware of the proved forgery.
The individual claiming his or her signature was forged is not jointly or severally liable for liabilities arising from such a return if the signature was indeed forged. The Cincinnati Service is designed to work these cases. The IRS form Form 8857, Request for Innocent Spouse Relief will be used in these cases.
If you look at line 11 of the Form 8857, Innocent Spouse Relief, it asks the Requesting Spouse whether the signature was forged. A married filing separate tax return may need to be secured from the spouse claiming forgery if a return is required for the period, or if the taxpayer may have been entitled to a refund. You will have to document the case for the IRS. You will want to get copies of your signature and develop a case file for the IRS. It makes cases easier to work.
A Requesting Spouse who raises the issue of forgery and later determines he or she would owe more tax if he or she filed separately, may choose not to pursue the issue of forgery.Yes, you may not want to pursue the case. It will be cheaper to leave it alone.
In situations where the spouse claiming forgery failed to file despite having a filing requirement, the circumstances surrounding the alleged forgery should be investigated. An interview with the other spouse can be considered by the Internal Revenue Service when developing the tacit consent issue. The IRS as a practical matter has very little time to work these cases. However, on a larger dollar case it could fly.
The Internal Revenue Service can consider referring the individual who forged the signature and any other individual associated with the forgery to the Criminal Investigation Division.
Side note: Cases that can go to the CID would be large dollar multiple year type of cases or possible high profile individuals.
Amended Returns & Form 1040X Question: What should I do if I made a mistake on my federal return that I have already filed? Answer: It depends on the type of mistake that you made:
Many mathematical errors are caught in the processing of the tax return itself. If you did not attach a required schedule, the IRS will contact you and ask for the missing information.
If you did not report all your income or did not claim a credit, you should file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return. When filing an amended or corrected return:
Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include.
Generally, to claim a refund, the Form 1040X (PDF) must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later. Please allow the IRS 8-12 weeks to process an amended return.
If you need an immediate release of a Federal Tax Lien call Fresh Start Tax 1-866-700-1040. We can get immediate releases of the Federal Tax Liens if you qualify.
The full amount of your lien will remain a matter of public record until it is paid in full, including all accruals and additions. However, at any time you may request an updated lien payoff amount to show the remaining balance due by calling the IRS toll-free customer service telephone number at 1-800-913-6050
As a former IRS Agent, this question comes up often, Do both husband and wife half to sign their personal income tax return?
A deficiency assessed on a joint account based on the signature of only one spouse is generally not a valid assessment with respect to the non-signing spouse. This also applies if the spouse did not sign an amended return. There can be a binding joint return even if one spouse failed to sign the return, if the parties’ intended to file a joint return. Thus, one must examine the parties intentions to ascertain whether the absence of one signature invalidated the return.
See financial v. Commissioner, 34 T.C. 740 (1960), aff’d, 325 F.2d 1 (2 d. Cir.1963).
If an invalid assessment was made against a non-signing spouse, the IRS may not be able to assess the proper amount against the non-signing spouse because the statute of limitations may have expired.
