DEFERRAL CNC
What is the dollar amount for a Deferral CNC closure?
Total balance less than $1,500
What is the dollar amount for an Exception CNC closure?
AAB less than $10,000
True or False? A taxpayer who cannot pay is considered refusing to pay their balance.
FALSE
WHICH CHECKLIST YOU NEED TO USE IF REQUESTING CNC EXCEPTION?
HARDSHIP CNC (INCLUDES EXCEPTION CRITERIA)
What letter is sent out to advise the taxpayer of the CNC terms and conditions?
4624c
What is the TC and Closing Code for all CNC Deferral and Exception closures?
TC 530 CC 024
True or False? If a taxpayer refuses to pay, they may be subject to enforcement actions, such as a levy or lien.
TRUE
What Command Code can be used to check on the terms of an IA?
CC IADIS
How does the IRS define hardship?
A hardship occurs when an individual taxpayer is unable to meet their basic living expenses.
WHICH TOOL YOU WILL USE TO INPUT THE CNC EXCEPTION ON THE ACCOUNT?
IAT COMPLIANCE SUITE
WHICH SHECKLIST YOU WILL USE IF TP REFUSES TO PAY?
TP REFUSAL TO PAY CHECKLIST
What Command Code would a CR research to determine if a DDIA payment can be skipped or stopped?
CC EFTAD
WHICH TOOL YOU WILL USE TO INPUT TC 530 ON THE ACCOUNT?
IAT TOOL REQ77
Can a taxpayer who is CNC be established on an IA? Explain.
Yes — the IA would be set up, but the ALN would be XX53 so that in the event of a missed or non-payment, the TP will drop into CNC and not cycle back to collection.
On a Notice Status account, what action should a CR take regarding the balance when a taxpayer refuses to pay? What is input?
STAUP 2200
If a DDIA payment is available to be stopped, what Command Code is used to stop the draft?
CC EFTOF
CNC HARDSHIP TERMS AND CONDITIONS. MENTION 3 OF THEM
For any account closed out CNC under hardship provisions:
·Interest continues to accrue
·Penalties continue to accrue, up until they systemically halt accruing
·An annual reminder notice is sent the taxpayer (CP 71); no other collection notices are sent
·Federal and possibly state tax refunds will be offset to the balance
·Any new balances are not automatically covered under the CNC closure
·If the taxpayer’s financial information improves (as evidenced by subsequent tax returns that are filed) and they do not call us, we may reverse the CNC and begin efforts to collect
What are the criteria for an Exception CNC closure?
One or more of the following:
1. terminal illness
2. excessive medical bills
incarcerated
only income is SSA, welfare, unemployment, unemployed with no income
If a taxpayer refuses to pay, what should a CR do?
Patiently explain the balance and why the taxpayer owes. If the balance is incorrect, take steps to address it. If the taxpayer continues their position of refusing to pay a valid balance, advise of potential collection consequences
On CC EFTAD, what should a CR look for to determine if the next scheduled DDIA payment can be stopped?
Parentheses with a blank space between them