ALL MODULES
What causes an IA to default?
Late / missing payments, new liabilities not paid when due, bounced check, TP fails to provide updated financial analysis.
What form is used for a PDIA?
2159
What is the difference in unassessed and preassessed balances?
Unassessed balances mean the TP has one or balances already posted and needs to add another one that has yet to be assessed to IDRS. A preassessed balance is a forthcoming balance when the TP has no existing balances yet.
When is a return required to be filed before an IA can be established?
If the TP has unfiled returns within the last 6 years — 3 if Express FCC applies — that do not meet internal closure thresholds.
Define a Streamlined IA.
The AAB is $25,000 or less and will be fully paid in 72 months, or the total will be fully paid prior to the CSED, whichever comes first.
When is a new form needed when revising a DDIA?
A change in bank or account / routing number or the taxpayer wants / needs to increase the monthly IA amount.
How does a PDIA work?
The TP and employer sign the form agreeing to the amount established by the IRS. The form is returned. The employer remits the funds each pay period. CRs generally use the 28th as the due date each month.
When should a CR give a WOEA?
Status 22 balances only. Also on unfiled returns.
What type of IA is needed in lieu of the filing of an NFTL?
DDIA / PDIA
What form(s) can be used for a DDIA?
433-D, 9465, 433-H
What are the three penalties a CR will most often see on an account?
FTP, FTF, Estimated Tax Penalty
What is input to IDRS to notate the account that there is an IA pending?
TC 971 AC 043
Name what OPA can and cannot be used for.
Make the point it’s only SIAs and Short Term Payment Plans. Access IRM 21.2.1.57, Online Payment Agreement (OPA) for IMF Debts, and ask the items in parens (5)(6)(7) and (8) and have the CRs indicate if OPA can or cannot be used.)
When can a DDIA be revised without a new form?
When a taxpayer requests for a change in the payment date, a decrease to the payment amount, or when certain balances are being added to the DDIA.
What is an NSIA?
A balance up to one million AAB that can be paid within the total remaining years on all CSEDs. Discuss when an NSIA needs financials / NFTLs.
When should a taxpayer make a VLSP?
Only when reducing the AAB in order to fit into one of the Streamlined IA categories.
If a TP wants a DDIA (or a PDIA) but cannot provide the form via e-fax, is the IA established?
Yes, but as a regular IA. Once the form is received the IA is converted.
Define “current year” in the context of FCC.
It refers to the latest tax return as defined by the calendar year. As soon as we reach January 1st, the current year becomes the return due that year in April, and we no longer request the oldest return from year six.
What is the difference in the AAB, the assessed balances(s), and accrued balances(s)?
The AAB is the total of the assessed balances. The assessed balance is the tax, P&I when the balance is assessed or posted to IDRS. The accrued balance is that amount, plus all current P&I to date.)
What notice is sent for a Default IA?
CP 523
While the IRS awaits the VLSP, is the IA input?
No
If a return is missing, how will it appear in IDRS?
Status 00, 02, 03, 04 or 06. Or it may just not be there at all; gap year or years.
Is the IA established while we await the form?
No
What Command Codes are used to complete a skip payment?
EFTAD and EFTOF
When can a return be closed according to internal guidelines? What are the Closing Codes?
Not Required to File — 590-26; Little or No Tax Due — 590-27; Refund Due — 590-28