RECOMMENDATION 2359
RECOMMENDATION TEXT:
Block with a title of “Expires”. Located top of document underneath the Title of the Document which is ‘Installment Agreement Accepted: Terms Explained” Remove the block and the text. This is of little importance to the Taxpayer to know this. The Letter is extensive, and this is extraneous information and not needed by the taxpayer. Is this the expiration date of the Installment Agreement?
IRS Action: Not adopted
This information is part of the Internal Work File for IRS use only and does not print on the letter. Information in the “Expires” block is blank and does not pertain or correlate to the installment agreement and does not print on the letter. IRS Follow-up Response & Recommendation: Concurring with the above explanation & as mentioned in the response provided for Referral #53484, the sample of the letter reviewed doesn’t appear to be the version that is actually issued to our taxpayers. For this reason, to help ease the review process & assist the TAP Committee in providing feedback &/or recommendations based on tangible evidence, we recommend that the TAP Committee partner with the appropriate stakeholders to obtain redacted versions of the actual letters received by taxpayers. In doing so, the TAP Committee may gain greater insight & a different perspective with regards to the notices & letters received by our taxpayers which may result in a more in-depth analysis & plausible solutions.
RECOMMENDATION 2360
RECOMMENDATION TEXT:
Block with a title of “Number of Copies Original”. Located top of document underneath the Title of the Document which is ‘Installment Agreement Accepted: Terms Explained” Remove the block and the text. This is of little importance to the Taxpayer to know this. The Letter is extensive and this is extraneous information and not needed.
IRS Action: Not adopted
This information is part of the Internal Work File for IRS use only and does not print on the letter. IRS Follow-up Response & Recommendation: Concurring with the above explanation & as mentioned in the response provided for Referral #53484, please refer to the response provided for ID #2359.
RECOMMENDATION 2361
RECOMMENDATION TEXT:
Block with a title of “Former Letter 2273C (rev. 02-20”. Located top of document underneath the Title of the Document which is ‘Installment Agreement Accepted: Terms Explained” Remove the block and the text. This is of little importance to the Taxpayer to know this. The Letter is extensive and this is extraneous information and not needed by the taxpayer. This is the same Letter Number as the one being sent in the Form Number Block Duplication of information not needed.
IRS Action: Not adopted
Information in this block is part of the Internal Work File for IRS use only. This information does not print on the letter; therefore it is not a duplication. IRS Follow-up Response & Recommendation: Concurring with the above explanation & as mentioned in the response provided for Referral #53484, please refer to the response provided for ID #2359.
RECOMMENDATION 2362
RECOMMENDATION TEXT:
Block with a title of “Distribution to: 1 to T/P”. Located top of document underneath the Title of the Document which is ‘Installment Agreement Accepted: Terms Explained” Remove the block and the text. This is of little importance to the Taxpayer to know this. The Letter is extensive, and this is extraneous information and not needed by the taxpayer.
IRS Action: Not adopted
This information is part of the Internal Work File for IRS use only and does not print on the letter. IRS Follow-up Response & Recommendation: Concurring with the above explanation & as mentioned in the response provided for Referral #53484, please refer to the response provided for ID #2359.
RECOMMENDATION 2363
RECOMMENDATION TEXT:
Block with a title of “IMF / BMF” Located top of document underneath the Title of the Document which is ‘Installment Agreement Accepted: Terms Explained” Use plain language to distinguish if the installment is for the TP’s “Individual or Business” taxes. Taxpayers may not know what BMF and IMF stand for
IRS Action: Not adopted
This information is part of the Internal Work File for IRS use only and does not print on the letter. IRS Follow-up Response & Recommendation: Concurring with the above explanation & as mentioned in the response provided for Referral #53484, please refer to the response provided for ID #2359.
RECOMMENDATION 2364
RECOMMENDATION TEXT:
Change the format to look more like the revised CP2000 letter. The Revised 2000 is divided in more comprehensible sections. The Revised 2000 is divided in more comprehensible sections.
IRS Action: Not adopted
As explained on the responses provided for the reviews conducted on the other various CRX letters, the CP2000 notice is a systemic notice that’s generally issued & based on tax issues identified by the agency. Whereas CRX letters are manual letters that are generally issued as a result of an action taken &/or inquiry/request made by the taxpayer. Both are generated on two completely different applications/platforms with various capabilities impacting the design, format, & structure of the products. In addition & as mentioned in the response provided for Referral #53484, the agency has mapped out its strategic approach to addressing concerns pertaining to taxpayer notices & letters. With attention to this, through comprehensive research & data analytics along with exploring technological solutions, the agency is currently working on several comprehensive initiatives focused on redesigning & simplifying all taxpayer correspondence products to provide all taxpayers with a more enhanced & personalized experience. For more information, please refer to the IRS’ Inflation Reduction Act (IRA) Strategic Operating Plan FY2023 – 2031.
RECOMMENDATION 2365
RECOMMENDATION TEXT:
Add the following section: TAXPAYER’S ONLINE ACCOUNT – Each taxpayer has the ability to create and access their individual taxpayer account to view updated individual account information including account balances by year; payment options and activity; tax records and transcripts; notices and letters; and third-party authorizations. Please go to irs.gov and select “Sign in to your Online Account” to get started. Our committee is receiving multiple requests and/or comments regarding taxpayer confusion and difficulty in receiving and understanding IRS Notices and Correspondence. Our committee firmly believes that adding this notification to every notice and taxpayer correspondence could alleviate the 1-800 phone line burden. The Notices and Correspondence Committee believes that if the taxpayer knew they could create an on-line account, much of this confusion could be alleviated. Most taxpayers are trying to obtain or confirm individual account information on the main IRS page or taxpayers never visit the IRS main page to realize that taxpayers have the ability to create and view taxpayer’s individual on-line account information. Therefore, we respectfully request that this text be included at the top of ALL IRS correspondence. Our committee would then advocate for further detail and improvements under the taxpayer on-line account – which our committee will discuss and present.
IRS Action: Not adopted
As specified in the response above & provided for reviews conducted on other CRX letters, CRX letters are generally issued manually as a direct result of a taxpayer-initiated action &/or inquiry related to a specific tax issue. Whereas notices are usually generated systemically as a direct result of a taxpayer issue in need of clarification &/or resolution that has been identified by the agency. To gain understanding & clarity of their notice, taxpayers can visit the landing page of the notice they received via irs.gov – this information is outlined on the notice itself. IRS Request: Please refer to the request outlined in the response provided for ID #2359. Regarding adding/shifting online self-service options to the top of the letter, all CRX letters are formatted in such a way to prioritize the main tax issue &/or inquiry as conveyed by the taxpayer up front. LTR 1962C confirms the granting or revision of a direct debit installment agreement (DDIA) – outlining the terms, user fee information, & any other applicable conditions that may apply. Employees select the most appropriate paragraph(s) based on the taxpayer’s (main) issue & payment & other self-service options are subsequently provided. With this intention, taxpayers are informed, their issues are addressed, & taxpayers are educated on/provided with the resources & various payment options available to access their account & satisfy their tax liability. Lastly & as mentioned on Referral #53484, the agency has mapped out its strategic approach to addressing concerns pertaining to taxpayer notices & letters. With attention to this, through comprehensive research & data analytics along with exploring technological solutions, the agency is currently working on several comprehensive initiatives focused on redesigning & simplifying all taxpayer correspondence products to provide all taxpayers with a more enhanced & personalized experience. For more information, please refer to the IRS’ Inflation Reduction Act (IRA) Strategic Operating Plan FY2023 – 2031.
RECOMMENDATION 2366
RECOMMENDATION TEXT:
At that time, we’ll send you a notice showing the amount of tax, penalty, and interest you owe. The notice will ask for payment of the total amount you owe. INSERT The law requires us to send this notice on overdue accounts. Because you must either pay this amount in full or remit payments based on your new installment agreement, or the agreement will be in default. You don’t need to respond to this notice. Based on our experience, the words are misleading.
IRS Action: Not adopted
This portion of Paragraph G of LTR 1962C advises taxpayers that although they’ll receive an initial settlement letter/notice of demand for payment as required by law, they don’t need to respond to that notice because their installment agreement was granted. It’s important to mention that the initial settlement letter/notice of demand for payment, e.g. CP14, advises taxpayers to make their payments according to their approved agreement. Consequently, if the agency revised the language as recommended, there’s high chance it would be perceived as being deceptive & potentially cause taxpayer confusion. For this reason, this recommendation is non-adopt.
RECOMMENDATION 2367
RECOMMENDATION TEXT:
We’ll deduct your payment of $$[34 16$] on the [35 4V] of each month. INSERT Please continue to send payment into us till you see IRS draws on your bank account and the direct debit is in place. Taxpayer maybe in default if payment not received
IRS Action: Not adopted
Paragraph J is informing taxpayers that their installment agreement (IA) was converted to a DDIA as requested. Taxpayers are advised that the agreed payment amount will be deducted from their checking account on the date as specified by the taxpayer. If applicable, employees will select from the other paragraphs available &/or use the open paragraph option to inform taxpayers of any additional information when necessary. Taxpayers are also provided with additional information pertaining to their DDIA under “What You Need To Do” section – including advising taxpayers to make sure they have sufficient funds in their banking account on the monthly due date to cover the payments deducted. For this reason, this recommendation is non-adopt.
RECOMMENDATION 2368
RECOMMENDATION TEXT:
To maintain your electronic installment agreement, we must have current information. If your banking information changes, submit a new Form 433-D, Installment Agreement, with your new routing and account numbers. We can’t change your routing and account numbers over the phone. You must contact us 15 days. To maintain your electronic installment agreement, we must have current information. If your bank account information changes, you must: ~Contact us within 15 days before the due date to stop the payment from your old bank account. ~Revise your bank account information (routing and/or account number) associated with an existing DDIA through your online account. OR ~Complete a new form 433-D, Installment Agreement, with your new bank account information. ~You must mail in your payments while we are processing your updated Form 433-D. Please allow XX days/months for processing. Your payments should be mailed or paid through your online account with IRS. Banking information change frequently happen to taxpayers. This section needs to be expanded so taxpayer is not accidentally missing out the installment payment that was put in place. Promote taxpayer to open online personal account to make payment timely. Reduce call volume related to clerical updates. See IRM: 21.2.1.57(7) Revise the bank information (routing and/or account number) associated with an existing DDIA.
IRS Action: Not adopted
The letter already provides guidance & instructions on how to update banking information if needed – including informing taxpayers they must contact the agency 15 days before the due date to stop payments from being deducted from their old account. Also, although it’s stated that banking information can change frequently, taxpayers are responsible for ensuring the agency has the most current information needed for the DDIA established. With that said, taxpayers, at their discretion, can update their information as instructed on LTR 1962C, Form 433-D, or through their online account as referenced in IRM 21.2.1.57. Regarding promoting online services, the agency has been aggressive with its campaign of promoting & ensuring taxpayers are aware of the self-service options & various payment agreements available. With that in mind, establishing an online account &/or DDIA is solely at the taxpayer’s discretion. In addition, according to the procedures outlined, when completing a DDIA, employees are instructed to establish the first payment date on the Form 433-D for 60-days from the date the IA is established & advise taxpayers the first payment won’t be withdrawn from their bank account for approximately 60-days. Also, although employees already have the ability of requesting information, e.g. F433-D, via fax by using an open paragraph on the letter, LTR 1962C was recently updated in 8/2023 & now have specific paragraphs – giving taxpayers the option of sending information by using the Document Upload Tool, fax, or mail. Form 433-D also provides taxpayers with instructions on how to make their payments – including making payments electronically online. For the reasons stated above, this recommendation is non-adopt.
RECOMMENDATION 2369
RECOMMENDATION TEXT:
Allow taxpayer to send the updated 433D by FAX. If recommendation is approved add to above recommendation: You may fax your completed 433D form with updated bank account information to us at XXX-XXX-XXXX. Please allow XX days/months for processing. See Above
IRS Action: Not adopted
Please refer to response provided for ID #2368.
