LIEN FILING REQUIREMENTS CONTINUED

 

Part 5. Collecting Process

Chapter 12. Federal Tax Liens

Section 2. Lien Filing Requirements (Cont. 1)

5.12.2  LIEN FILING REQUIREMENTS (CONT. 1)

5.12.2.9 Liens Filed in Other Areas
5.12.2.10 Duplicate NFTL Filing
5.12.2.11 Filing Outside the U.S.
5.12.2.12 Filing the NFTL by Mail
5.12.2.13 Distributing the NFTL
5.12.2.14 Lien Filed Indicator
5.12.2.15 Special Rules
5.12.2.16 Requests for Disclosure of Outstanding Lien Amount
5.12.2.17 Lien Priorities
5.12.2.18 Priority of Certain Other Interests - Advances, Interest and Expenses
5.12.2.19 Lien Fees
5.12.2.20 Refiling the NFTL
5.12.2.21 Designated Payment Code
5.12.2.22 Cost of Living Adjustment
5.12.2.23 Resolution of NFTL Related Unpostable Transactions
5.12.2.24 Providing Resolution Information to Listings Created by Centralized Lien
Exhibit 5.12.2-1 Notice of Federal Tax Lien (MCAR)
Exhibit 5.12.2-2 Lien Refiling Chart
Exhibit 5.12.2-3 Form 668(F)
Exhibit 5.12.2-4 State Filing Locations

 

5.12.2.9  (02-01-2007)
LIENS FILED IN OTHER AREAS

  1. A NFTL may be filed in any Internal Revenue area, regardless of where the assessment is outstanding. It is not necessary to complete Form 2209, Courtesy Investigation, to request an out-of-area NFTL filing.

  2. These liens should be filed by revenue officers using ICS.

  3. Before requesting the NFTL determine the proper place of filing and ensure that you are in the correct state where you want the NFTL recorded.

  4. Determine whether the NFTL is to reach real or personal property or both. This is necessary as the recording official and/or office may be different in certain states.

  5. A TC 582 will be automatically generated.

 

5.12.2.10  (02-01-2007)
DUPLICATE NFTL FILING

  1. Avoid filing liens on assessments when a lien has previously been filed in the same jurisdiction.

  2. Research ALS.

  3. If you have requested the NFTL, and one is already filed, determine if CLU obtained recording information. Do not create a new lien.

  4. If you determine that a lien has been recorded and that a second lien has been issued and recorded, complete L2440, Notification of Duplicate Filing of a Notice of Federal Tax Lien.

    NOTE:

    ALS will not allow the generation of a duplicate NFTL. Duplicates are the result of manually prepared documents or duplicate recordation of the same NFTL has occurred in the recording office.

  5. Forward the letter to the taxpayer. Do not instruct the taxpayer to record the document, however, it should be retained for future reference.

  6. Notify the CLU of the duplicate filing via secure email and inform them that a withdrawal request has been requested.

  7. Prepare a request for withdrawal of the NFTL and forward to Technical Services for approval. The last recorded NFTL will be withdrawn. Make sure the correct recording information is on the withdrawal form (Form 10916(c)).

  8. Collection Advisory may complete the ALS withdrawal request or the revenue officer may secure email the approved withdrawal to the CLU for issuance.

  9. Document your case history.

 

5.12.2.11  (02-01-2007)
FILING OUTSIDE THE U.S.

  1. Collection activity generally cannot be taken against property located outside the U.S. or outside the U.S. possessions and territories (a.k.a. insular areas). Collection assistance is available if provided for in a treaty with the country, where the property of the taxpayer is located (e.g., the U.S. treaties with Canada, Denmark, France, Netherlands, and Sweden provide for collection assistance.

  2. ) When the U.S. is seeking collection assistance from a treaty partner to collect taxes from assets located in the foreign country, a MCAR shall be made to the foreign Competent Authority through the Deputy Commissioner (International), LMSB.

 

5.12.2.12  (02-01-2007)
FILING THE NFTL BY MAIL

  1. NFTLs are mailed to recorders for filing from CLU. If necessary, a transmittal will accompany Parts 1 and 2 of the NFTL, and Form 3915, Processing Notices and Releases of Federal Tax Lien and Other Related Certificates. A self-addressed postage paid envelope, E-25C, will be enclosed for the return of Part 2.

  2. Occasionally, immediate filing is required. The NFTL should be delivered personally to the proper recording official.

  3. Receipted copies will be returned to CLU or ALS must be updated with the recording data.

 

5.12.2.13  (03-01-2004)
DISTRIBUTING THE NFTL

  1. The Form 668Y(c), Notice of Federal Tax Lien, is a multi-part form. Distribute the form in the following manner:

    1. Mail Parts 1 and 2 to the recording office. If manually prepared, retain a copy in the case file prior to mailing.

    2. Part 2 will be returned by the recording office with the appropriate recording information documented.

    3. Mail Part 3 to the taxpayer. (Effective 1/19/1999, taxpayer copies of the NFTL are sent certified mail with the collection due process notice.

 

5.12.2.14  (02-01-2007)
LIEN FILED INDICATOR

  1. A lien filed indicator (LFI) should appear on any module that has a TC 582 posted.

  2. The lien filed indicator on ALS generated NFTLs will be systemically input through IDRS to all tax modules that are included on a Notice of Federal Tax Lien. The LFI is the primary means by which areas are notified that modules are satisfied and that a release of the NFTL is in order.

  3. The input of LFIs is accomplished by having the automated system generate and forward a file to the servicing campus. The file is generated weekly and will include ACS NFTLs to take advantage of the LFI upload file.

  4. TC 582 is not generated to NMF accounts.

  5. Request input of TC 582 for a lien file indicator and TC 360 for recording fees for all manually prepared liens, including estate tax liens, if applicable.

  6. ICS users receive a systemic notification if the TC 582 does not post to IDRS within 30 days. Follow up action is required.

 

5.12.2.14.1  (02-01-2007)
REMOVING LFI INDICATORS

  1. Whenever an FTL is released, the related LFI must be removed from IDRS/master file. However, if the balance due is non-master file and no LFI is present for that module on IDRS, no action is necessary.

  2. The LFI is removed when ALS generates a file to the servicing campus for the input of TC 583.

  3. Effective 1/2007, TC583 must be used with one of the following definer codes.

    1. DC 1 – released

    2. DC 2 – withdrawal due to administrative error

    3. DC 3 – withdrawal due to collection due process appeal rights

    4. DC 4 – reversal

    5. DC 5 – self-released (statute expiration)

 

5.12.2.15  (03-01-2004)
SPECIAL RULES

  1. Special rules apply in some instances when filing a Notice of Federal Tax Lien

 

5.12.2.15.1  (03-01-2004)
ACTUAL NOTICE OR KNOWLEDGE OF LIEN REQUIREMENT

  1. The federal tax lien generally has priority over all interests created after the NFTL is filed. However, the Code provides that certain interests are senior to the Service’s interest despite the earlier filing of the NFTL. See IRM 5.17.2.5.1, Superpriorities; IRM 5.17.2.5.3.1, Commercial Transactions Financing Agreements; and IRM 5.17.2.5.3.4, 45-day Period for Making Disbursements.

  2. In some cases, the perfection of these interests may be disrupted if the third party asserting the interest has actual notice of knowledge.

  3. Third parties that should receive a copy of the filed NFTL include.

    1. Intended purchases (if known) of the taxpayer’s stocks, bonds, or other marketable securities.

    2. Intended purchases (if known) of taxpayer’s motor vehicles.

    3. Any insurer under a life insurance, endowment, or annuity contract with the taxpayer.

    4. Any financial institution holding an account for the taxpayer.

    5. Any lender or potential lender to the taxpayer or the taxpayer’s business.

      NOTE:

      In most cases, notice to third parties will not be possible because these third parties will not be known.

 

5.12.2.16  (03-01-2004)
REQUESTS FOR DISCLOSURE OF OUTSTANDING LIEN AMOUNT

  1. See Delegation Order 11-2 for a list of employees authorized to disclose information concerning the amount of the outstanding obligation secured by the NFTL. Disclosure may be made to any person who demonstrates that he/she possesses a right or intends to obtain right in the property. See IRM 11. 3.1.10, Disclosure of Amount of Outstanding Lien.

  2. Employees listed in Delegation Order 11-2 have the authority to determine whether or not to disclose the requested information under the authority of IRC 6103(k)(2).

  3. Any person, other than the taxpayer or their designee, desiring information as to the amount of the outstanding obligation in order to decide whether to acquire the property covered by the NFTL (when a NFTL has been filed) must submit a written request stating the reasons the information is desired and properly identifying the NFTL in question. A prospective purchaser should attach a copy of the sales contract or a lender loan application.

  4. The requested information will be furnished using Letter 1038(DO), Response to Inquiries About Release of Federal Tax Lien.

 

5.12.2.16.1  (03-01-2004)
DISCLOSURE TO ESCROW AND TITLE COMPANIES

  1. When a completed Form 8821, Tax Information Authorization, is provided, employees designated the authority to execute Forms 668(Y)(c), may disclose the amount of the outstanding obligation secured by the NFTL to escrow agents, title companies, lending institutions, etc., (See IRC 6103(c)).

  2. The Form 8821 must be completed prior to the taxpayer signing it and should authorize disclosure of lien information on the specific piece of property for sale.

  3. The following information should be provided:

    1. The taxpayer’s name, address, taxpayer identification number, or any combination of these three.

    2. The information to be disclosed, for example, the amount shown on the NFTL, including the address of the real property subject to the filed NFTL.

    3. The identity of the company or escrow agent authorized to receive the information. It is not necessary to name an individual

    4. The taxpayer’s signature and date.

    5. It is not necessary to specify tax type or tax year.

  4. Taxpayers may also authorize disclosure telephonically. Verify the taxpayer’s identity using approved functional procedures and document the information in writing.

    1. The information to be disclosed; for example, the amount shown on the NFTL, including the address of the property subject to the NFTL.

    2. The identity of the escrow agent or title company authorized to receive the information.

    3. The date of the consent. For example, "John Doe on 03/05/03 consents to disclose the payoff amount of all filed NFTLs on 134 Maple Boulevard to XYZ Title."

  5. Disclosure of lien information not subject to a filed NFTL should not occur without obtaining the taxpayer’s authorization either orally or in writing. Obtain and document the information referred to (4) above.

  6. In situations where the taxpayer’s authorization cannot be obtained, seek advice from Area Counsel; for example, taxpayer is medically incapacitated, is on vacation outside the U.S. and cannot be reached, etc.

 

5.12.2.17  (03-01-2004)
LIEN PRIORITIES

  1. The Federal Tax Lien (FTL) is not valid against purchasers, holders of security interests, mechanics lienors, and judgment lien creditors until a Notice of Federal Tax Lien (NFTL) has been filed. The filing of the NFTL notifies creditors that the FTL exists. The FTL becomes valid against those creditors discussed above at the time the NFTL is filed. Refer to IRC 6323. Exceptions exist for ten "superpriorities."

    1. Securities

    2. Motor Vehicles

    3. Retail purchases

    4. Casual sales

    5. Possessory liens

    6. Real property tax and special assessment liens

    7. Small repairs and improvements of residential real property.

    8. Attorney liens

    9. Certain insurance contracts

    10. Deposit secured loans

  2. These priorities are fully explained in the IRM, 5.17.2, Federal Tax Liens.

  3. Purchase money security interests and purchase money mortgages have priority over a previously filed NFTL, if protected under local law. See Rev. Rul. 68-57).

 

5.12.2.18  (05-20-2005)
PRIORITY OF CERTAIN OTHER INTERESTS - ADVANCES, INTEREST AND EXPENSES

  1. In some cases, advances made after or property coming into existence after the NFTL is filed have priority if granted by local law. Protection under local law must be the same that is provided against a judgment lien creditor at the time the NFTL is filed.

  2. The law provides priority generally with respect to security interests in property held before the notice of lien filing which arose as a result of advances made prior to the 46th day after the filing of a tax lien, unless actual notice or knowledge of the filing is obtained sooner. However, for the priority to exist in such cases, certain conditions must be met. See IRM 5.17.2.5.3.4.

  3. Home Equity Line of Credit - it is advisable to investigate the facts of the case to determine how the funds were used in order to determine the priority of the FTL. If the funds are drawn after the NFTL is filed, determine if the mortgage/lender has a security interest in the real property. Verify the amount of money or money’s worth that changed hands. Determine if:

    1. The entire amount was turned over to the taxpayer;

    2. The taxpayer is allowed to draw against the funds as he wants;

    3. A specific amount was approved;

    4. The taxpayer paid down the amount owed.

  4. Interest and certain expenses have the same priority as the related lien or security interest. See IRC 6323(e) and IRM 5.17.2.5.4.

 

5.12.2.19  (02-01-2007)
LIEN FEES

  1. Input lien fees to file or release manually prepared NFTLs when the NFTL is forwarded for recordation.

    NOTE:

    TC 360 should will appear on the oldest module on the lien with a TC 582 lien filed indicator (LFI) present.

  2. Input of fees for systemically generated NFTLs is accomplished by having ALS generate a file to the servicing campus. Files are generated weekly on Friday and include fees through close of business Wednesday of the same week.

  3. A 24 hour delay of the transaction code going to the data file allows for corrections resulting from quality review of NFTL documents. Contact CLU to have the NFTL deleted if full payment is received within 24 hours.

  4. A listing will generate for TC 360 associated with NMF accounts. A request for posting MARS must be prepared and forwarded to the servicing campus on Form 3244, Payment Posting Voucher.

  5. Fees for hand carried documents may be paid by the RO or a Form 3982, Billing Support Voucher, may be submitted to the recording official for payment. When Form 3982 is used the recording office will add cost for recording fees to their monthly billing invoice for payment. Contact the recording office to determine if Form 3982 will be accepted as payment.

  6. Reverse the TC 360 when a NFTL is filed in error.

  7. See IRM 5.12.6, for information regarding billing methods.

 

5.12.2.19.1  (02-01-2007)
RELEASE FEES - ISSUING FORM 3982, BILLING SUPPORT VOUCHER FOR RECORDING CERTIFICATES OF RELEASE

  1. Lien fee (filing and release) costs are uploaded to the taxpayer's account at the time the Notice of Federal Tax Lien is forwarded to the recording office.

  2. Taxpayers may have an immediate need to record documents. Determine if the recording office accepts Form 3982, Billing support Voucher (BSV) as payment for recording certificates.

    1. If the BSV is accepted, complete Form 3982 and inform the taxpayer that the voucher should presented to the recorder with the certificate of release, as payment for the certificate to be recorded.

      NOTE:

      The Recorder will include the recording fee with their monthly billing statement.

    2. If the BSV is not accepted by the recording official and the liability is full paid, abate the amount of the recording fee from the taxpayer's account. The taxpayer will pay the recording cost. Abating the recording fee ensures that the taxpayer does pay the fee twice.

  3. When a taxpayer is requesting a copy of the certificate of release and the liability is satisfied because the collection statute expired or there is a bankruptcy discharge, the taxpayer must pay the recording fee.

 

5.12.2.20  (02-01-2007)
REFILING THE NFTL

  1. Refile the NFTL to maintain the continuity of priority established by the original lien filing when the collection period is extended.

  2. Secure email Form 12626 to CLU.

  3. Consider refiling the NFTL if the statute date has been extended or suspended by any action within the required refiling period. All NFTLs filed after 12/82 will self-release ten years after the assessment regardless of any extension or suspension of the collection statute, e.g., filing of a suit, consideration of an OIC, automatic stay in bankruptcy, etc.

    IfThen

    the form used for the original refiling was earlier than 12/1982,failure to file at the appropriate time does not affect the validity of the filing. However, it does nullify the effect of the prior filing.

    Notices of Federal Tax Lien are filed on forms revised on 12/1982 or laterthe form "self-releases" unless timely refiled. These forms are considered as both a NFTL and a release.

  4. The CLU ALS Functional Coordinator will provide copies of the Potential Refile Report generated by the ALS. Functional managers must secure email requests to the ALS Functional Coordinator. Identify the area and specify the dates to be included in the report, for example 10/1/2005 through 5/1/2006. The report may assist you in identifying liens that are within the refile period. See IRM 5.12.6.11, Reports for additional guidance.

  5. Refiling timely maintains the government’s priority amongst other creditors. Release of the NFTL is conclusive that the underlying, statutory FTL is extinguished. Follow procedures in IRM 5.12.3 for revocation and reinstatement procedures.

  6. All functions with active inventories are responsible for making timely refile determinations, as well as ensuring that the NFTL is refiled, if appropriate.

  7. Collection Technical Services will make refile determinations and request refiling of the NFTL for CNC mandatory follow-up and ACS cases.

  8. Designated employees in the Automated Collection System Unit are responsible for NFTL refiling on active ACS cases.

  9. The Lien Processing Unit will input refiles through ALS upon request.

 

5.12.2.20.1  (07-01-2005)
CRITERIA FOR REFILING

  1. Before any NFTL is refiled, each assessment should be examined to determine that the statutory period for collection has been suspended or extended beyond the normal ten-year period beginning with the assessment date.

  2. The normal collection statute may be suspended or extended by:

    1. Execution of Form 900, Tax Collection Waiver

    2. Offer in Compromise.

    3. Assets of taxpayers in custody of a court in certain types of proceedings.

    4. Judgment for the United States.

    5. Absence of taxpayer from the United States continuously for six months.

    6. Military deferments.

    7. Filing a suit.

    8. An extension executed between the taxpayer and the Service before a timely-filed levy is released after the CSED.

    9. Wrongful seizure or lien on property of a third party.

    10. Automatic stay in bankruptcy.

  3. The extension of the statutory period for collection does not mean that a NFTL must be automatically refiled. Each case should be analyzed regarding present and future assets to which the refiled NFTL might attach. The present balance still due on the FTL would be another factor to be taken into consideration.

 

5.12.2.20.2  (03-01-2004)
REQUIRED REFILING PERIOD

  1. The time period for refiling the NFTL has a starting and ending date. Therefore, a refiled Notice of Federal Tax Lien is invalid if it is filed after the period for refiling.

  2. The refiling period lasts for one year. For the first refiling, the period begins nine years and 30 days from the date of the assessment and ends 10 years and 30 days from the date of assessment. For example, if the assessment date is 3/1/85, the first refiling period is 3/31/94 - 3/31/95. For subsequent refilings, each period begins nine years after the end of the previous refiling period and ends 1 year later. An example using the first refiling period above is that the second refile period would be 3/31/04 - 3/31/05.

  3. The following is an example of the "Required Refiling Period" On March 1, 1985, an assessment of tax was made against A, a delinquent taxpayer, and a FTL for the amount of the assessment arose on that date. On July 1, 1985, a NFTL was properly filed. The NFTL filed on July 1, 1985, is effective up to and including March 31, 1995. The first required refiling period for the NFTL begins on April 1, 1994, and ends on March 31, 1995. A refiling of NFTL during that period will extend the effectiveness of the NFTL filed on July 1, 1985, up to and including March 31, 2005. The second required refiling period for the NFTL begins on April 1, 2004, and ends on March 31, 2005.

  4. For calculations of the required refile period see Exhibit 5.12.2-2.

 

5.12.2.20.3  (03-01-2004)
PLACE FOR REFILING

  1. During the required refiling period, the NFTL is to be refiled:

    1. In all cases in every office in which a prior NFTL (including a refiled notice) was filed, and

    2. In the proper office in the State where a new residence is located, if, 90 days or more prior to the date of refiling, the Service receives written information concerning a change in the taxpayer’s residence.

      NOTE:

      If the state has redesignated its filing location for the specific type of property, the NFTL should be refiled in the new office designated by the state. The Uniform Federal Lien Act of the state should be checked to confirm where to file the certificate or notice.

    IfThen

    the new residence is located outside the United Statesrefiling will be made in the District of Columbia. This refiling is extremely important in the case of personal property. If it is not accomplished as and when required, all other refilings are ineffective.

    more than one written notice of change of address is received on or before the 90th day.the most recent one will be used for purposes of refiling, whether or not the taxpayer resides there on the date of refiling.

 

5.12.2.20.4  (03-01-2004)
ADDRESS CHANGE PROCEDURES AFFECTING REFILING

  1. Except as provided below, a notice of change of a taxpayer ’s residence will be effective if it is received in writing from the taxpayer or his/her representative (Form 8822, Change of Address), states the taxpayer’s name and the address of the new residence or through the National Change of Address database.

  2. The notice of change of a taxpayer’s residence will be effective if it is contained in a return or amended return of the same type of tax filed with the Internal Revenue Service by the taxpayer.

  3. The return or amended return must indicate that it is a change of address and correctly state the taxpayer’s name, address of present residence and identification number required by IRC 6109.

  4. Other than the means specified above, no communication, either written or oral, will be considered as notice of a change of a taxpayer’s residence.

 

5.12.2.20.5  (03-01-2004)
PROCEDURES AND RESPONSIBILITIES FOR REFILING

  1. Under normal circumstances, the Automated Lien System (ALS) should be used.

  2. At times, circumstances may exist that do not allow time for a refiled NFTL to be created through ALS. In these cases Form 668F should be prepared as shown in Exhibit 5.12.2-3.

  3. ALS Units will print the Potential Refile Report and forward information on suspended cases to the appropriate function or employee for a refile determination. ACS and Form 53 mandatory follow-up determinations will be made by Collection Technical Services.

  4. Prior to refiling, all balances must be updated to reflect the current unpaid balance of assessment, Satisfied modules should not appear on a refiled NFTL.

    IfThen

    the refiled NFTL is prepared through ALSALS will automatically not include any satisfied modules.

    the entire assessed amount has been paid, unassessed accrued amounts remain outstandingenter the total amount of the accruals as of the date the refiled NFTL is requested. These amounts should be shown in column (f). Line through the words Unpaid Balance of Assessment and write in Outstanding Balance.

    there is a de minimus amount due on the assessed balance and unassessed accrualsenter the total amount owed plus accruals as of the date the refiled NFTL is requested. Line through the words Unpaid Balance of Assessment and write in Outstanding Balance.

    an original Notice of Federal Tax Lien lists more than one liability, and the assessment dates are different,the refiled NFTL should list only the period(s) which meet the criteria for refiling.

    there are multiple assessments within the same period, and the refile periods are differentcare should be taken to only enter the balance for the assessment(s) being refiled. The Automated Lien System (ALS) will allow refiling of each specific assessment.

    a Form 668(Y) was filed in a given jurisdiction, but because of a change of residence a NFTL is to be refiled during the refiling period in another jurisdiction.use Form 668F for refiling, even though Form 668(Y) was never filed in that jurisdiction.

  5. ALS will allow NFTLs to be refiled when the statute has expired against one person on a joint assessment.

 

5.12.2.20.6  (03-01-2004)
RELEASE OF REFILED NFTL

  1. The Form 668F, used to refile a NFTL, is not self-releasing. File a certificate of release when an extended statutory period for collection has expired.

  2. Filing Form 668Z, Certificate of Release of Federal Tax Lien, will extinguish the NFTL and remove all notices from the record. Each refiling, amendment or correction associated with an original NFTL must be identified on the certificate of release.

 

5.12.2.20.7  (03-01-2004)
ORIGINAL NOTICE OF LIEN AFTER REFILING PERIOD

  1. Occasionally it is necessary to refile an original NFTL after the end of the first refiling period. The ALS system will prompt you for the CSED. When the NFTL document is printed, ALS will print "N/A" in the "last day for refiling" block.

 

5.12.2.21  (03-01-2004)
DESIGNATED PAYMENT CODE

  1. A designated payment is a voluntary payment designated by the taxpayer to be applied in a particular manner, i.e., kind of tax, specific tax period, etc. These designations are normally followed by the Service.

  2. In the absence of a designation by the taxpayer, payments will be applied in a manner consistent with the provisions of Revenue Procedure 2002-26, unless a specific statute, regulation or procedure designates otherwise.

  3. A designated payment code (DPC) is mandatory on all Collection initiated posting vouchers for transaction codes 640, 670, 680, 690, 693 and 700. DPCs serve three purposes.

    1. They are used to identify payments that are designated for trust fund or non-trust fund employment and excise taxes.

    2. DPCs are used to indicate application of payments for a specific liability.

    3. DPCs also identify the event which resulted in the payment.

  4. Use DPC 07 when applying payments secured for the release of a notice of federal tax lien or to secure a certificate of discharge or subordination.

    NOTE:

    The mere fact that a lien has been filed does not indicate that the payment is due to the filing of a NFTL. In this case, the appropriate DPC should be used.

 

5.12.2.22  (03-01-2004)
COST OF LIVING ADJUSTMENT

  1. For those interests designated as "Superpriorities," RRA 98 provides that for tax years beginning in 1999 and thereafter, the higher superpriority amounts will be indexed annually for inflation (consistent with the cost-of-living adjustment (COLA) amounts for the applicable tax year) and rounded to the nearest multiple of $10. See 5.17.2.5.1, Superpriorities.

 

5.12.2.23  (03-01-2004)
RESOLUTION OF NFTL RELATED UNPOSTABLE TRANSACTIONS

  1. There are a number of reasons why transactions do not post. Below we discuss the unposted transaction and how it should be resolved.

 

5.12.2.23.1  (03-01-2004)
END OF DAY (EOD) LIST

  1. Weekly an upload is made to the Campus of all transaction codes (TC) 582 and 583 for the previous week’s created and released NFTL. These transactions are input to the Integrated Data Retrieval System (IDRS) and trough End of Day (EOD) processing. EOD processing is the first validity check that is performed on any transaction attempting to post to IDRS.

  2. TC 582 and 583 transactions which drop from EOD processing will appear on an EOD control list. This list will be used by the area office to make appropriate corrections to allow the transaction to be reinput.

  3. EOD control lists are created in Campus computer rooms and forwarded to the Compliance Services Collection Operations (CSCO) function. CSCO separates the records by area office and forwards the list to the Collection Case Processing.

  4. Areas will review the dropped transactions, determine the reason the transaction dropped and take necessary corrective action to reinput. The most common errors will be name control/TIN and MFT/period mismatch, much like unpostables.

  5. The list will show the following:

    LINE...WILL...

    1indicate that the record dropped from processing.

    2show the reason the record dropped.

    3have the following data fields marked:

    • Taxpayer Identification Number (TIN)

    • Master file Tax (MFT)

    • Tax Period

    • Name Control

    • Transaction Code, and

    • Area.

5.12.2.23.2  (02-01-2007)
UNPOSTABLE RESOLUTION

  1. Unpostable transactions will be resolved by the centralized lien processing unit. These transactions are found on EONS and Control D. It is the initiating employees responsibility to ensure that the TC 582 posts.

    NOTE:

    Revenue officers receive a system notification; "Lien requested not yet filed. " 30 days after requesting the NFTL and the TC 582 has not posted. Contact CLU to determine the status of the NFTL.

  2. In cases where the centralized lien processing unit determines that an account has not been established (prompt assessments), the IDRS control base will be closed and the revenue officer will be notified. The revenue officer is responsible for monitoring IDRS for establishment of the account and ensuring that the TC 582 is posted.

  3. Unpostable TC 360 will be received weekly from the ALS system in the centralized lien unit and resolved.

  4. Unpostables will be worked within 5 workdays of receipt.

  5. The most common unpostable conditions are TIN/name control mismatch. Some of the reasons these conditions occur are:

    1. an input document was prepared incorrectly or data was transcribed incorrectly.

    2. The NFTL request was prepared with in correct information and generated an incorrect systemic transaction record.

 

5.12.2.23.3  (03-01-2004)
CORRECTING THE UNPOSTABLE CONDITION

  1. To correct the unpostable condition, do the following:

    1. Check the ALS to determine if the information on the unpostable record matches the corresponding information on the ALS NFTL record.

    2. Make the appropriate corrections to the unpostable and reinput the transaction code with the correct information, if the information on the unpostable does not match.

    3. Check IDRS and/or master file to attempt to determine what the correct information is if the information matches.

    4. Reinput the unpostable record with the correct information.

      NOTE:

      If the ALS NFTL record is incorrect, refer to IRM 5.12.6 for correcting NFTLs for the appropriate procedures.

    5. Take no further action to correct unpostable for TC 360 transaction ONLY, with an unpostable code of 197 (IMF) and unpostable code 347 (BMF). These transactions unposted because the TC 360 attempted to post to an inactive account. Reinput the income TC 360 unpostables and remove any UPC 197 and UPC 347.

    6. Close the open IDRS control base as part of the resolution process. CSCO will send Technical Services a Case Control Age List Weekly of Technical Services cases by IDRS employee number and age of case. This listing may be used by Technical Services as a monitoring device that open control bases are being closed timely.

    7. Technical Services will receive Accounts Maintenance Transcripts reflecting a TC 360 and there is no liability open on the module where the TC 360 posted. It should not be assumed that the TC 360 is automatically a NFTL fee. Upon receipt of the transcripts, do the following:

    • Research ALS to determine if the NFTL was filed for the taxpayer entity on the transcript.

    • Input TC 582 if necessary and correct the TC 360 posting if the NFTL is found for this entity.

 

5.12.2.24  (02-01-2007)
PROVIDING RESOLUTION INFORMATION TO LISTINGS CREATED BY CENTRALIZED LIEN

  1. The Automated Lien System generates reports when certain conditions are not met. Functional employees must review listings and provide appropriate resolution information to the centralized site. Two listings will be issued by area/function/territory, when appropriate

  2. The Potential Lost Lien Report provides a list of NFTLs without court recording data. The centralized unit will obtain the court recording data, if possible. However, in cases where it cannot be obtained, the function must determine if a replacement NFTL is required. Before making a decision, consider the following issues.

    1. Is there a remaining liability?

    2. Is the remaining liability sufficient to request the reissuance of the NFTL?

    3. Has the taxpayer's status changed?

  3. Don't limit your consideration to the items listed above. There may be other issues to consider.

  4. Resolution of potential lost lien issues must occur within five (5) business days and be returned by secure email or fax to the Lien Team that made the request

  5. Satisfied Module Reject Report - ALS generates Satisfied Module Reject Reports when tax modules are satisfied but systemic lien releases are not generated because the NFTL cannot be found on ALS. Rejects are caused by errors in:

    1. Master File Transaction (MFT) codes, or

    2. incorrect taxpayer identification numbers (TINS) (because of TIN changes made on master file MFT were not relayed to ALS; or

    3. tax periods.

  6. In these situations, research is required to determine why the satisfied module notification did not match a NFTL in ALS. To ensure timely lien release, the information is associated with correct SSNs, MFTs and/or tax periods. Some rejects must be resolved by other functions.

  7. Functional employees must identify the cause of the reject, annotate the appropriate information on the document provided by CLU or complete Form 13794, Request for Release, Partial Release or Withdrawal of Notice of Federal Tax Lien .

  8. Secure email or fax resolution information to the Lien Team that sent the request within 2 business days.

 

EXHIBIT 5.12.2-1  (03-01-2004)
NOTICE OF FEDERAL TAX LIEN (MCAR)

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EXHIBIT 5.12.2-2  (03-01-2004)
LIEN REFILING CHART

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EXHIBIT 5.12.2-3  (03-01-2004)
FORM 668(F)

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EXHIBIT 5.12.2-4  (02-01-2007)
STATE FILING LOCATIONS

StateReal PropertyPersonal Property

AlabamaOffice of Probate Judge for the county where the real property is located.Corporations and Partnerships (with principal executive office in Alabama): Office of the Sec’y of State.
Trusts: Office of the Sec’y of State.
Estates of Decedents: Office of the Probate Judge for the county in which the estate is administered.
All Other Cases: Office of the Probate Judge for county where the taxpayer resides.

AlaskaOffice of the Recorder of the recording district where the real property is located.Individual Taxpayers: Records of the recording district where the person resides at the time of recording the lien.
Corporations and Partnerships: The Office of the Recorder of the recording district where the principal executive office of the business is located.

ArizonaOffice of the Recorder in the county where the real property is located.Corporations and Partnerships (with principal executive office in Arizona): Office of the Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Recorder for county where the person against whose interest the lien applies resides at the time of filing or recording the tax lien.

ArkansasOffice of the Circuit Clerk of the county where the real property is located.Corporations and Partnerships (with principal executive office of Arkansas): Office of the Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of them Sec’y of State.
All Other Cases: Office of the Circuit Clerk for the county where the person against whose interest the lien applies resides at the time of filing.

CaliforniaOffice of the County Recorder in which the real property is located.Corporations, Limited Liability Companies, and Partnerships (with principal executive office in California: Office of the Sec’y of State.
Trusts: Office of the Sec’y of State.
Estate of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Recorder for the county where the person against whose interest the lien applies resides.

ColoradoOffice of the County Clerk and Recorder of the county where the real property is located.Corporations and Partnerships (with principal executive office in Colorado): Office of the Sec’y of State.
Trusts: Office of the Sec’y of State.
Estates of Decedent: Office of the Sec’y of State.
All Other cases: Office of the Secretary of State.

ConnecticutOffice of the clerk of the town in which the real property is located.Secretary of State

DelawareOffice of the Recorder of Deeds of the county where real property is located.Corporations, Partnerships, Limited Liability Companies (with principal executive office in Delaware): Office of Sec’y of State
Trusts: Office of the Sec’y of State
All Other Cases: Office of the Recorder of Deeds of the county where the person against whose interest the lien applies resides at the time of filing.

District of ColumbiaOffice of the Recorder of Deeds of the District of Columbia where the real property is located.Office of the Recorder of Deeds of the District of Columbia where the taxpayer resides.

FloridaOffice of the Clerk of the Circuit Court (or County Recorder) of the county where the real property is located.Corporations and Partnerships, (with principal executive office in Florida): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Clerk of the Circuit Court (or County Recorder) of the county where the person against whose interest the lien applies resides at the time of filing.

GeorgiaOffice of the Clerk of the Superior Court of the county where the real property is located.Corporations and Partnerships, (with principal executive office located in Georgia): Office of the Superior Court of the county where the principal executive office is located.
All Other Cases: Office of the Clerk of the Superior Court of the county where the taxpayer resides.

HawaiiOffice of the Bureau of ConveyancesOffice of the Bureau of Conveyances

IdahoOffice of the County Recorder of the county where the real property subject to the lien is located.Corporations and Partnerships, (with principal executive office in Idaho): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the County Recorder of the county where the taxpayer resides.

IllinoisOffice of the Recorder of the county in which the real property subject to the lien is located. n1Office of the Recorder of the County in which the personal property subject to the lien is located.

IndianaOffice of the Recorder of the county in which the real property subject to lien is located.Office of the recorder of the County in which the personal property subject to the lien is located.

IowaOffice of the Recorder of the county where the real property is located.Corporations and Partnerships, (principal executive office in Iowa): Office of Sec’y of State
All Other Cases: Office of the Recorder of the county where the person resides.

KansasOffice of the Register of Deeds of the county where the real property is located.Corporations and Partnerships, (with principal executive office in Kansas): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Register of Deeds for counties for the county where the taxpayer resides.

KentuckyOffice of the County Clerk of each county within which the property subject to lien is locatedOffice of the County Clerk of each county within which the property subject to lien is located.n2

LouisianaImmovable Property: Office of the Parish Recorder of Mortgages of the parish in which the immovable property subject to lien is located.Movable Property: Office of the Clerk of Court of any parish or, in the case of Orleans Parish, with the Recorder of Mortgages (filing officer), for inclusion in the master index of information maintained by the Sec’y of State.

MaineRegistry of deeds in the county or counties within which the affected property is situated.Secretary of State

MarylandOffice of the Clerk of the Circuit Court of the County where the real property is located.Corporations and Partnerships (principal executive office located in Maryland): Office of the Clerk of the Circuit Court where the principal executive office is located.
All other cases: Office of the Clerk of the Circuit Court of the county where the person resides at the time of filing of the tax lien.

MassachusettsOffice of the Register of Deeds of the county where the real property is locatedOffice of the United District Court for the judicial district in which the taxpayer resides.n3

MichiganOffice of the Register of Deeds of the county in which the real property subject to liens is located.Corporations and Partnerships, (with principal executive office in Michigan): Office of Sec’y of State
All Other Cases: Office of the Register of Deeds for the county where the taxpayer resides.

MinnesotaOffice of the County Recorder in the county in which the real property subject to liens is located.Corporations and Partnerships, (with principal executive office in Minnesota): Office of Sec’y of State
All Other Cases: County Recorder of the county where the person against whose interest the lien applies resides at the time of filing.

MississippiOffice of the Chancery Clerk of the county where the real property is located.Corporations and Partnerships, (with principal executive office in Mississippi): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Chancery Clerk for the county where the owner resides at the time of filing of the notice of lien.

MissouriOffice of the Recorder of Deeds or in the office of the Clerk of the circuit Court as ex officio Recorder of Deeds of the county within which the real property is located.Office of the Recorder of Deeds or in the office of the Clerk of the Circuit Court as ex officio Recorder of Deeds of the county where the property is located.

MontanaOffice of the Clerk and Recorder of the County or counties where the real property is located.Corporations and Partnerships, (with principal executive office in Montana): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Clerk and Recorder for the county where the taxpayer resides.

NebraskaOffice of the Sec’y of State. Sec’y of state will then forward notice to proper Register of Deeds.Office of the Secretary of State

NevadaOffice of the County Recorder of the county where the real property is located.Corporations and Partnerships, (with principal executive office in Nevada): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the County Recorder of the county where the person against whose interest the lien applies resides.

New HampshireOffice of the Registry of Deeds of the county in which the real property subject to lien is located.Corporations and Partnerships, (with principal executive office in New Hampshire): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Clerk of the town or city where the person against whose interest the lien applies resides at the time of filing.

New JerseyOffice of the County Recording Officer of the county or counties where the real property is situated.Office of the County Recording Officer of the county or counties where the property is situated.

New MexicoOffice of the County Clerk of the county where the real property is located.Officer of the County Clerk of the county where the property owner resides at the time of recording the notice of lien.

New YorkOffice of the Clerk of the county where the real property is located.n4Corporations and Partnerships: Office of the Secretary of State.
All Other Cases: In the office of the Clerk of the county where the lienee, if a resident of the state, resides at the time of the filing of the notice of lien.n5

North CarolinaOffice of the Clerk of the Superior Court of the county where the real property is located.Corporations and Partnerships, (with principal executive office in North Carolina): Office of Sec’y of State
All Other Cases: Office of the Clerk of the Superior Court of the county where the person against whose interest the lien applies resides.

North DakotaOffice of the County Recorder where the property subject to the lien is located.Corporations and Partnerships, (with principal executive office in North Dakota): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the Recorder of the county where the person against whose interest the lien applies resides.

OhioOffice of the County Recorder where the property subject to the lien is located.Office of the County Recorder of the county where the property subject to the lien is located.

OklahomaOffice of the County Clerk of the county where the real property is located.Corporations and Partnerships, (with principal executive office in Oklahoma): Office of County Clerk of Oklahoma County, Oklahoma
Trusts: Office of the County Clerk of Oklahoma County, Oklahoma
Estates of Decedents: Office of the County Clerk of Oklahoma County, Oklahoma
All Other Cases: Office of the County Clerk of the county where the person against whose interest the lien applies resides at the time of filing notice of lien.

OregonOffice of the Recorder of Conveyances of the county where the property is located.n6Secretary of State

PennsylvaniaOffice of the Prothonotary of the county in which the real property subject to the lien is located.Office of the Prothonotary of the county where the person against whose interest the lien applies resides at the time of the filing notice of lien.

Puerto RicoSection of the Registry of Property of the district where the real property is located.Office of the Clerk of the District Court of the U.S. for the District of Puerto Rico.n7

Rhode IslandOffice of the Recorder of Deeds of the city or town where the real property is located.n8Office of the Recorder of Deeds of the city or town where the taxpayer resides.n8

South CarolinaOffice of the Register of Deeds (Deeds or Clerk of Court in counties where Office or Register of Deeds has been abolished) of the county where the property subject to lien is situated.Office of the Register of (or Clerk of Court in counties where Office or Register of Deeds has been abolished) of the county where the property subject to lien is situated.

South DakotaOffice of the Register of Deeds in the county in which the property subject to lien is located.Corporations and Partnerships, (with principal executive office in South Dakota): Office of Sec’y of State
All Other Cases: Office of the Register of Deeds in the county where the taxpayer resides.

TennesseeOffice of the Register of Deeds of the county where the real property is located.Office of the Register of Deeds of the county within which the property subject to liens is located.

TexasOffice of the County Clerk of the county where the real property subject to the lien is located.Corporations and Partnerships (with principal executive office in Texas): Office of the Sec’y of State.
All Other Cases: Office of the County Clerk of the county where the taxpayer resides at the time of filing notice of lien.

UtahOffice of the County Recorder of the county within which any property subject to the lien is situated.Office of the County Recorder of the county within which any property subject to the lien is situated.

VermontOffice of the Town Clerk of the town where the property subject to lien is located.Office of the Town Clerk of the town where the property subject to lien is located.

VirginiaOffice of the clerk of the Circuit Court of the county or city in which the real property subject to lien is located.Corporations and Partnerships (with principal executive office in Virginia): Office of the Clerk of the State Corporation Commission.
All Other Cases: Office of the Clerk of the Circuit Court of the county or city (1) where the taxpayer resides, or (2) in the case of a trust or decedent’s estate, having jurisdiction over the qualification of the trustee or probate of the will, at the time of filing of the notice of lien

WashingtonOffice of the County Recorder of the county where the real property subject to liens is located.Department of Licensing

West VirginiaOffice of the County Commission of the county where the real property subject to liens is located.Office of the Clerk of the County Commission of the county wherein the person against whose interest the lien applies resides at the time of filing. The residence of a corporation or a partnership is deemed to be the place at which the principal executive office is located.

WisconsinOffice of the Register of Deeds of the county where the real property is located.Corporations and Partnerships (with principal executive office in Wisconsin); Department of Financial Institutions
Trusts: Department of Financial Institutions
Estates of Decedents: Department of Financial Institutions
All Other Cases: Office of the Register of Deeds of the county where the person against whose interest the lien applies resides at the time of filing.

WyomingOffice of the County Clerk of the county in which the real property subject to the lien is situated.Corporations and Partnerships, (with principal executive office in Wyoming): Office of Sec’y of State
Trusts: Office of the Sec’y of State
Estates of Decedents: Office of the Sec’y of State
All Other Cases: Office of the County Clerk of the county where the person against whose interest the lien applies resides at the time of filing.

n1 See also Rev. Proc. 68-1 CB 741,superseding Rev. Proc, 67-15, 1967-1 CB 592.

n2 See also Harrison v. Harold Cox Concrete Constr. Co., 440 F.Supp. 859 (W. D. Ky 1977).

n3 Rev. Rul. 85-89, 1985-2 CB326

n4 For real property located in the county of Kings, the county of Queens, the county of New York, or in the county of the Bronx, notice of lien is filed in the Office of the City Register of the city of New York in such county. For property located in two or more counties, notice of lien is filed in the office of the Clerk or the City Register, as the case may be, in each of such counties.

n5 If the person against whose interest the lien applies resides at the time of filing in the county of Kings, the county of Queens, the county of New York or the county of the Bronx, the place of filing such liens shall be in the office of the city register of the city of New York for such county. When there is more than one lienee against whose interest the lien applies, the notice of lien shall be filed for each lienee.

n6 If the county does not have a Recorder of Conveyances, notice of tax lien against real property must be filed in the Office of the County Clerk of the county where the real property is located. R.S. § 87.806(2).

n7 Flores 76-1 USTC P 9394; 535 F.2nd 135

n8 Notice of tax lien against real or personal property to be filed by the city or town clerk if he has custody of the land records. G.L. 1956, § 34-34-1.

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