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  • The Taxpayer Roadmap 2019...Risk of Going to Court (Hazards of Litigation) Notice of Refund Claim Disallowance or 6 Months Since ... Adjustment Adjustment Abated Taxpayer Requests
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KEY Lines Stops Tax Return Preparation Tax Return Processing Collections Appeals Exam Litigation Process Taxpayer Receives and Gathers Tax Information Taxpayer Prepares Return Does Taxpayer Owe Taxpayer Files Extension for More Time Taxpayer Estimates Tax Due and Submits Payment IRS.gov Paid Return Preparer File Electronically or Paper Taxpayer e-Files and Submits Payment If Due Return Rejected Return Passes Filters Taxpayer Files Return on Paper and Submits Payment If Due Return Mailed ID Theft Filters No ID Theft Filters Were Errors Found on Return Were Errors Found on Return IRS Corrects Errors and Posts Return IRS Corrects Errors and Posts Return Return Reviewed by IRS for Questionable Items Field Exam Office Exam Correspondence Exam Appointment Scheduled Appointment Confirmation Taxpayer Provides Documentation of Requested Information Taxpayer Agrees With Proposed Changes Audit Report/Letter Giving Taxpayer 30 Days to Respond Identity Verified Return Processing Stopped, Notice Issued Free File/Free File Fillable Forms Volunteer Income Tax Assistance / Tax Counseling for the Elderly Commercial Tax Software IRS Tax Law Phone Line IRS Forms and Publications IRS Taxpayer Assistance Centers (TACs) Can Taxpayer File Return by Deadline Tax Return Preparers Tax Software Taxpayer Seeks Answers to Tax Questions Action/Decision Decision Point Choice Station’s Arrivals Station’s Departures End/Case Closed Tax Notice Automated Process Taxpayer Begins Filing Process YES YES NO NO Taxpayer Addresses e-File Errors and Refiles YES RETURN IS ACCEPTED FOR PROCESSING PROCESSING STATION Were Wages & Withholding Verified Did Questioned Credits Get Verified Automated Questionable Credits (AQC) Account Adjusted NO NO NO NO NO YES YES YES YES YES Account Adjusted TAXPAYER’S BALANCE IS ASSESSED IRS CATEGORIZES TAXPAYER’S CASE Taxpayer Requests Collection Due Process Hearing Within 30 Days Equivalent Hearing (Request Within 1 Year) Case Closed No Further Action Installment Agreement Taxpayer Files Collection Appeals Program (CAP) Request Taxpayer Files Collection Due Process (CDP) Hearing Request Within 30 Days of CDP Notice Taxpayer Files Equivalent Hearing Request Within 1 Year of CDP Notice Appeals Conference Balance Paid Case Not Assigned (Shelved) Notice of Intent to Levy and Right to Collection Due Process Hearing Full Payment Case Returns to IRS or IRS Recalls Case YES YES PRIVATE DEBT COLLECTION Notice of Lien Filed and Right to Collection Due Process Hearing Doubt As to Collectibility Effective Tax Administration (Equity, Public Policy, Economic Hardship) Withdrawal of Notice of Federal Tax Lien Lien Discharge Lien Release Lien Subordination How to Address a Levy Wrongful Levy Levy Release (With Economic Hardship) Return of Levy Proceeds Installment Agreement Partial Pay Installment Agreement Taxpayer Disagrees With Assessed Amount Bankruptcy (Insolvency) Pay Tax Due in Full Offer in Compromise How to Address a Lien Currently Not Collectible Doubt As to Liability RETURN OR CLAIM IS SCREENED FOR EXAM Letter Notifying Taxpayer of Audit With Request for Additional Information Exam Letter Notifying Taxpayer of Audit With Request for Additional Information IRS Issues Math Error Notice IRS Issues Math Error Notice 90-Day Notice Letter Notice of Claim Disallowance Taxpayer Timely Petitions Tax Court Hearing Taxpayer Does Not Petition Tax Court Hearing Payment Options TAXPAYER DISAGREES WITH ASSESSMENT YES NO NO NO TAXPAYER FILES APPEAL OR CLAIM REQUEST Taxpayer Protests 30-Day Letter The map below illustrates, at a very high level, the stages of a taxpayer’s journey, from getting answers to tax law questions, all the way through audits, appeals, collection, and litigation. It shows the complexity of tax administration, with its connections and overlaps and repetitions between stages. As you can see from its numerous twists and turns, the road to compliance isn’t always easy to navigate. But we hope this map helps taxpayers find their way. A project of the Taxpayer Advocate Service. For more information visit taxpayeradvocate.irs.gov Line Direction Tax Return Processing Collections Tax Preparation Appeals Litigation Private Debt Collection Exam Face-to-Face or Telephone Conference Tax Assessed Taxpayer Appeals Refund Claim Denial Appeals Considers Refund Claim Face-to-Face or Telephone Conference Appeals Considers: • Were All Administrative/Legal Requirements Followed • Collection Alternatives • Innocent Spouse Relief • Balancing Test - Whether Government’s Interest in Efficiently Collecting Tax Is No More Intrusive Than Necessary Appeals Agrees With Taxpayer Appeals Agrees With Taxpayer Appeals Does Not Agree With Taxpayer Taxpayer Files Petition Within 30 Days of Collection Due Process (CDP) Determination Letter Appeals Considers Risk of Going to Court (Hazards of Litigation) Notice of Refund Claim Disallowance or 6 Months Since Refund Claim Filed YES YES YES YES YES NO NO Notice of Tax Due and Demand for Payment Taxpayer Requests Refund IRS Sends Taxpayer Collection Notices NO NO NO Taxpayer Owes Tax ASSESSMENT STATION SORTING STATION APPEAL STATION ALTERNATIVES STATION SCREENING STATION LITIGATION STATION ACTION STATION Taxpayer Pays Taxes Taxpayer Timely Files Request for Refund Does Taxpayer Pay Balance Due YES Taxpayer Disagrees With Assessed Amount Notice of Federal Tax Lien Filed (in Public Records) COLLECTION STATION Taxpayer Requests Collection Appeals Program Levy/Seizure of Assets TAXPAYER COLLECTION ALTERNATIVES Taxpayer Doesn't Agree and Requests Appeals Conference Collection Appeals Program Appeals Consideration Case Settled Appeals Determination Initial Contact Combined With 30‐Day Letter and Report IRS Fully Accepts Taxpayer Documentation IRS Fully Accepts Taxpayer Documentation COLLECTION ACTIONS Taxpayer Does Not Pay Taxes Taxpayer Files Tax Court Petition Previous IRS Appeal Taxpayer Files For Bankruptcy in Federal Court Tax Court Decision NO Taxpayer Calls IRS to Discuss Collection Alternatives Balance Due Return 90-DAY NOTICE LETTER Notice Giving Taxpayer 90 Days to Petition Tax Court (150 Days If Outside United States) MATH ERROR NOTICE IRS Posts Return IRS Posts Return Refund Claim Refund, If Any, Issued to Taxpayer Bureau of Fiscal Service (BFS) Offsets for Non-Tax Debts IRS Offsets for IRS Debts Balance Due to IRS by Taxpayer No Balance Due to IRS by Taxpayer Refund Due to Taxpayer Field Collection Lien Enforcement Action to Enforce Levy Government Files Suit in Court Refund From Another Year Applied to Debt Case Waiting for Assignment (Queue) Automated Collection System YES NO Reduce Assessment to Judgment Foreclosure of Tax Lien YES NO No Change in Tax (With or Without Adjustments) YES YES Taxpayer Provides Documentation of Requested Information 90-Day Notice Letter Taxpayer Does Not Respond Audit Report/Letter Giving Taxpayer 30 Days to Respond 90-Day Notice Letter Taxpayer Timely Files Innocent Spouse Claim Taxpayer Files Offer in Compromise (Doubt As to Liability) FILED BY TAXPAYER Taxpayer Requests Audit Reconsideration General Claims Taxpayer Can Bring Federal Court Decision Taxpayer Files Petition in Federal Court Taxpayer Prevails and Government Does Not Appeal Taxpayer Prevails NO Taxpayer Owes Tax and Does Not Appeal Taxpayer or Government Appeals Federal Appeals Court Federal Appeals Court Decision United States Supreme Court Taxpayer or Government Appeals Innocent Spouse Claim Not Raised on Audit Review of Collection Due Process Determination Request for Interest Abatement Administrative Costs Taxpayer Owes Taxes Taxpayer Agrees With Appeals No Agreement or Partial Agreement Settlement With Reservations (Partial Agreement With Unresolved Issues) Appeals Agrees With Taxpayer Tax Assessed 90-Day Notice Letter Taxpayer Claims Refund Appeals Agrees With Taxpayer YES NO NO NO Notice of Partial or Full Claim Disallowance Taxpayer Petitions Federal Court Appeals Issues Equivalent Hearing Letter Appeals Does Not Agree With Taxpayer Appeals Issues Collection Due Process Determination Letter YES NO 90-Day Notice Letter Taxpayer Petitions Tax Court ASSESSMENT STATION LITIGATION STATION YES YES NO NO Math Error Notice Taxpayer Agrees With Adjustment Adjustment Abated Taxpayer Requests Abatement of Adjustment Within 60 Days Adjustment Remains in Place Adjustment Remains in Place EXAM STATION The Taxpayer Roadmap 2019 An Illustration of the Modern United States Tax System

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Page 1: The Taxpayer Roadmap 2019...Risk of Going to Court (Hazards of Litigation) Notice of Refund Claim Disallowance or 6 Months Since ... Adjustment Adjustment Abated Taxpayer Requests

KEY

Lines

Stops

Tax Return Preparation Tax Return Processing

Collections

Appeals

Exam

Litigation

Process

Taxpayer Receivesand Gathers TaxInformation

Taxpayer Prepares Return

Does TaxpayerOwe

Taxpayer Files Extensionfor More Time

Taxpayer EstimatesTax Due and Submits

Payment

IRS.gov

Paid Return Preparer

File Electronically or Paper

Taxpayer e-Files and SubmitsPayment If Due

Return Rejected

Return Passes Filters

Taxpayer Files Returnon Paper and SubmitsPayment If Due

Return Mailed

ID TheftFilters

No IDTheft Filters

Were ErrorsFound on Return

Were ErrorsFound on

Return

IRS Corrects Errors and

Posts Return

IRS CorrectsErrors and

Posts ReturnReturn Reviewed by IRS forQuestionableItems

FieldExam

Office Exam

Correspondence Exam

AppointmentScheduled

AppointmentConfirmation

Taxpayer ProvidesDocumentation of

Requested Information

Taxpayer Agrees With Proposed Changes

Audit Report/Letter Giving Taxpayer

30 Days to Respond

Identity Verified

Return Processing Stopped, Notice IssuedFree File/Free File Fillable

Forms

Volunteer Income TaxAssistance / Tax Counseling for the Elderly

Commercial Tax Software

IRS Tax LawPhone Line

IRS Forms andPublications

IRS TaxpayerAssistance Centers

(TACs)

Can Taxpayer File Return by Deadline

Tax ReturnPreparers

Tax Software

Taxpayer Seeks Answersto Tax Questions

Action/Decision

Decision Point

Choice

Station’s Arrivals

Station’s Departures

End/Case Closed

Tax Notice

Automated Process

Taxpayer Begins Filing Process

YESYES

NO

NO

Taxpayer Addresses e-File Errors and Refiles

YES

RETURN IS ACCEPTED FOR

PROCESSING

PROCESSINGSTATION

Were Wages& WithholdingVerified

Did QuestionedCredits Get Verified

Automated Questionable Credits (AQC)

Account Adjusted

NO

NO

NO

NO

NO

YESYES

YESYES

YES

AccountAdjusted

TAXPAYER’S BALANCE IS ASSESSED

IRS CATEGORIZES TAXPAYER’S CASE

Taxpayer RequestsCollection DueProcess HearingWithin 30 Days

Equivalent Hearing (Request

Within 1 Year)

Case Closed

No FurtherAction

InstallmentAgreement

Taxpayer Files Collection Appeals Program (CAP)Request

Taxpayer Files Collection DueProcess (CDP)Hearing RequestWithin 30 Days ofCDP Notice

Taxpayer FilesEquivalent Hearing

Request Within 1 Year of CDP Notice

Appeals Conference

Balance Paid

Case NotAssigned(Shelved)

Notice of Intent to Levy and Right to Collection Due

Process Hearing

FullPayment

Case Returnsto IRS or IRS Recalls Case

YES

YES

PRIVATE DEBTCOLLECTION

Notice of Lien Filed and Right to Collection Due

Process Hearing

Doubt As toCollectibility

Effective Tax Administration(Equity, Public Policy, Economic Hardship)

Withdrawal of Noticeof Federal Tax Lien Lien Discharge Lien ReleaseLien Subordination

How to Address a LevyWrongful Levy

Levy Release (With Economic Hardship)

Return of Levy Proceeds

Installment Agreement

Partial PayInstallment Agreement

Taxpayer Disagrees WithAssessed Amount

Bankruptcy (Insolvency)

Pay Tax Due in Full

Offer in Compromise

How to Address a Lien

Currently Not Collectible

Doubt As to Liability

RETURN OR CLAIM IS SCREENED FOR EXAM

Letter Notifying Taxpayer of Audit With Request for Additional Information

Exam Letter Notifying Taxpayer of Audit With Request for Additional Information

IRS IssuesMath ErrorNotice

IRS IssuesMath ErrorNotice

90-DayNotice Letter

Notice of ClaimDisallowance

Taxpayer Timely Petitions Tax Court

Hearing

Taxpayer Does Not Petition Tax Court

Hearing

Payment Options

TAXPAYER DISAGREESWITH ASSESSMENT

YES NO

NONO

TAXPAYER FILES APPEAL OR CLAIM REQUEST

Taxpayer Protests30-Day Letter

The map below illustrates, at a very high level, the stages of a taxpayer’s journey, from getting answers to tax law questions, all the way through audits, appeals, collection, and litigation. It shows the complexity of tax administration, with its connections and overlaps and repetitions between stages. As you can see from its numerous twists and turns, the road to compliance isn’t always easy to navigate. But we hope this map helps taxpayers �nd their way. A project of the Taxpayer Advocate Service.

For more information visit taxpayeradvocate.irs.gov

Line Direction

Tax Return Processing

Collections

Tax Preparation

Appeals

Litigation

Private Debt Collection

Exam

Face-to-Faceor TelephoneConference

Tax Assessed

Taxpayer AppealsRefund Claim Denial

Appeals ConsidersRefund Claim

Face-to-Faceor TelephoneConference

Appeals Considers:• Were All Administrative/Legal Requirements Followed• Collection Alternatives• Innocent Spouse Relief• Balancing Test - Whether Government’s Interest in Efficiently Collecting Tax Is No More Intrusive Than Necessary

Appeals AgreesWith Taxpayer

Appeals AgreesWith Taxpayer

Appeals Does NotAgree With Taxpayer

Taxpayer FilesPetition Within 30 Days

of Collection Due Process (CDP)

Determination Letter

Appeals ConsidersRisk of Going toCourt (Hazards

of Litigation)

Notice ofRefund ClaimDisallowance or6 Months SinceRefund ClaimFiled

YES

YES

YES

YES

YES

NO

NO

Notice of Tax Dueand Demand forPayment

Taxpayer Requests Refund

IRS Sends Taxpayer Collection Notices

NO

NO

NO

Taxpayer Owes Tax

ASSESSMENT STATION

SORTING STATION

APPEAL STATION

ALTERNATIVES STATION

SCREENING STATION

LITIGATION STATION

ACTION STATION

TaxpayerPays Taxes

Taxpayer Timely FilesRequest for Refund

Does Taxpayer PayBalance Due

YES

Taxpayer Disagrees With Assessed Amount

Notice of Federal Tax Lien Filed

(in Public Records)

COLLECTION STATION

Taxpayer RequestsCollection Appeals

Program

Levy/Seizureof Assets

TAXPAYER COLLECTION ALTERNATIVES

Taxpayer Doesn't Agree and Requests Appeals Conference

Collection Appeals Program

AppealsConsideration

CaseSettled

Appeals Determination

Initial ContactCombined With 30‐Day

Letter and Report

IRS FullyAccepts Taxpayer

DocumentationIRS Fully

Accepts TaxpayerDocumentation

COLLECTION ACTIONS

TaxpayerDoes Not Pay Taxes

Taxpayer FilesTax CourtPetition

PreviousIRS Appeal

Taxpayer Files For Bankruptcy in Federal Court

Tax CourtDecision

NO

Taxpayer Calls IRS to Discuss Collection Alternatives

Balance Due Return

90-DAY NOTICE LETTERNotice Giving Taxpayer 90 Days

to Petition Tax Court (150 Days If Outside United States)

MATH ERROR NOTICE

IRS Posts Return

IRS Posts Return

Refund Claim

Refund, If Any, Issued to Taxpayer

Bureau of Fiscal Service (BFS) Offsets for Non-Tax Debts

IRS Offsets forIRS Debts Balance

Due to IRS by Taxpayer

No Balance Due toIRS by Taxpayer

Refund Due to Taxpayer

FieldCollection

Lien Enforcement

Action toEnforce Levy

GovernmentFiles Suitin Court

Refund From Another Year

Applied to Debt

Case Waitingfor Assignment

(Queue)

AutomatedCollectionSystem

YES

NO

Reduce Assessmentto Judgment

Foreclosure of Tax Lien

YES

NO

No Change in Tax(With or Without

Adjustments)

YES YES

Taxpayer Provides Documentation ofRequested Information

90-DayNotice Letter

TaxpayerDoes NotRespond

Audit Report/Letter Giving Taxpayer

30 Days to Respond

90-Day Notice Letter

Taxpayer Timely Files Innocent Spouse Claim

Taxpayer Files Offer in Compromise (Doubt As to

Liability)

FILED BY TAXPAYER

Taxpayer RequestsAudit Reconsideration

General ClaimsTaxpayerCan Bring

Federal CourtDecision

Taxpayer Files Petition in Federal Court

Taxpayer Prevailsand GovernmentDoes Not Appeal

Taxpayer Prevails

NO

Taxpayer Owes Tax and Does Not Appeal

Taxpayer orGovernment Appeals

Federal Appeals Court

Federal AppealsCourt Decision

United StatesSupreme Court

Taxpayer orGovernment Appeals

Innocent SpouseClaim NotRaised on Audit

Review of Collection Due Process Determination

Request for Interest Abatement

AdministrativeCosts

Taxpayer Owes Taxes

Taxpayer AgreesWith Appeals

No Agreementor Partial Agreement

Settlement WithReservations (Partial Agreement

With Unresolved Issues)

Appeals AgreesWith Taxpayer

Tax Assessed

90-Day Notice Letter

Taxpayer ClaimsRefund

Appeals AgreesWith Taxpayer

YES

NO

NO

NO

Notice of Partialor Full ClaimDisallowance

Taxpayer PetitionsFederal Court

Appeals IssuesEquivalent

Hearing Letter

Appeals Does Not Agree With

Taxpayer

Appeals IssuesCollection Due

Process DeterminationLetter

YES

NO

90-Day Notice Letter

TaxpayerPetitions

Tax Court

ASSESSMENT STATION

LITIGATIONSTATION

YES

YES

NO

NO

Math ErrorNotice

TaxpayerAgrees WithAdjustment

AdjustmentAbated

Taxpayer RequestsAbatement of

Adjustment Within60 Days

AdjustmentRemainsin Place

AdjustmentRemainsin Place

EXAMSTATION

The Taxpayer Roadmap 2019An Illustration of the Modern United States Tax System

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