IRS RESPONSE TO RECOMMENDATION: We are in the process of revising IRM 5.8.11 to incorporate Interim Guidance issued on September 16, 2014. As we complete this revision, we will give further consideration to the NTA’s additional recommendations.

Update: IRM 5.8.11, Effective Tax Administration, was revised and published on 08/05/2015. OIC Collection Policy cleared and updated this section with TAS and received a signed F2061 approving the changes and incorporated interim guidance.

CORRECTIVE ACTION: We will consider the NTA’s additional recommendations when we revise IRM 5.8.11 to incorporate interim guidance issued on September 16, 2014.

TAS RESPONSE: The National Taxpayer Advocate is pleased the IRS is incorporating the suggested changes into IRM 5.8.11.  When revisions are complete, TAS will review the IRM to ensure inclusion of the National Taxpayer Advocate’s recommendations.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: We provided training on the new guidance to the Non-Economic Hardship-Effective Tax Administration (NEH-ETA) group and offer specialists/offer examiners shortly after the guidance was issued.  Additionally, training on the new guidance has been incorporated into the OIC Update for Field Revenue Officers (#59163), which is scheduled for delivery in FY 2015 CPE.

CORRECTIVE ACTION: N/A

TAS RESPONSE: We believe with the updated guidance and improved training, the IRS will be able to meet the congressional mandate to give special consideration to victims of payroll service provider fraud.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: ​​IRM 5.1.24.5.7, Offers in Compromise, instructs revenue officers who secure an offer in compromise from an employer whose liability was affected by the actions of a payroll service provider to submit the OIC to the appropriate centralized OIC campus within 24 hours of receipt. However, we will include a cross reference in IRM 5.7, Trust Fund Compliance.

Update: IRM 5.7.4, Investigation and Recommendation of the Trust Fund Recovery Penalty, revised to include a cross reference to IRM 5.1.24.5.7, Offers in Compromise. Revision approved by Director, Collection Policy on 11/2/15 and forwarded to publishing. Revised IRM in pdf format.

CORRECTIVE ACTION: We will include a cross reference to IRM 5.1.24.5.7, Offers in Comprise, which instructs revenue officers to submit an OIC received by an employer affected by the actions of a payroll service provider to submit the OIC to the appropriate centralized OIC campus with 24 hours, in IRM 5.7.4, Investigation and Recommendation of the TFRP.

TAS RESPONSE: The National Taxpayer Advocate is pleased the IRS is incorporating the suggested changes into IRM 5.7. When revisions are complete, TAS will review the IRM to ensure inclusion of the National Taxpayer Advocate’s recommendations. We believe with the updated guidance and improved training, the IRS will be able to meet the congressional mandate to give special consideration to victims of payroll service provider fraud.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A