The IRS Has Not Adequately Prioritized Federal Civilian Employee Nonfilers

Share this report and recommendation with the Treasury Department Office of Tax Policy to consider a legislative proposal to amend I.R.C. § 6103 and any other required provisions of the law, thereby allowing the IRS to share essential return information with other Federal agencies upon the IRS’s identification of a current Federal employee who is tax delinquent.

Prioritize all FERDI TDA and TDI work at the designated campus site. Additionally, as resources and circumstances permit, FERDI Staff in Jacksonville should give a top priority to answering FERDI calls and working FERDI inventory.

Consider systemically sending the taxpayer an ACS LT 26 within 30 days of the case moving into standalone TDI inventory.

Add verbiage to the ACS LT 39 (Reminder Notice) that includes the outstanding TDI and how the taxpayer can resolve it.

Implement a programming fix to ensure that FERDI TDIs are properly blocked when a shelved transaction code is being used. Additionally, update IRM 5.19.17 to improve instructions when working FERDI accounts to reduce the risk of FERDI accounts being shelved incorrectly.