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Fiscal Year 2017 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers’ Property

Report Information

Date Issued
Report Number
2017-30-063
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Director, Collection Policy, Small Business/Self-Employed Division, should update the Internal Revenue Manual (IRM) to provide clear direction on what date to use in calculating interest charges on seizure redemptions.

The Director, Collection Policy, Small Business/Self-Employed Division, should update Form 2434, Form 2434-A, Form 2435, and Publication 594 to provide that redemption interest should be compounded daily and ensure that Table 45 of Revenue Procedure 95-17 is readily available to the taxpayer and the purchaser to determine the correct interest amount.

The Director, Collection Policy, Small Business/Small Employed Division, should ensure that the taxpayer and the purchaser receive complete instructions about the redemption process.

The Director, Collection Policy, Small Business/Self-Employed Division, should instruct Advisory personnel to deposit redemption checks into the Deposit Fund Account when required by the IRM and ensure that managers verify employees' compliance.