If a taxpayer visits a local office in response to a defaulted installment agreement notice, appropriate action should be taken based on the circumstances of the case. A lien determination is required for these agreements. The agreement meets streamlined criteria and the taxpayer has not defaulted an installment agreement in the 12 months prior to the current default. These agreements require no lien determination. If the agreement is in default or was terminated solely due to missed payments under the terms of the agreement, whether or not the taxpayer was given a systemic skipped payment before receiving the CP 523, subsequent skipped payments may be permitted for causes of emergency.
Managerial approval is required.
If a taxpayer skips more than two payments in a twelve month period, including the systemic skip, the agreement will be defaulted by SCCB unless the taxpayer provides a new or revised financial statement. Taxpayers need not appear in person for re-evaluation of their financial condition. While conducting a personal interview with the taxpayer with regard to the transfer of a balance due case or delinquency investigation, attempt to secure the telephone number and any new income and asset information, in addition to the new address. Advise the taxpayer to contact the new office for financial review. If the installment agreement has less than twelve months remaining, it should not be transferred unless the taxpayer has requested transfer or the agreement is in default status.