I called the IRS this week to request CNC for a taxpayer whose liability is a little under 10k. I prepared the financials and assembled the supporting documents to match the 433. When I explained the situation to ACS, I let them know the TP is unemployed and receiving unemployment. She placed me on hold for like 10 minutes, came back and said she spoke to her manager and that running the 433 is not necessary. They went ahead and placed the account on CNC on the spot. TP should be getting a letter in the mail in the next 7-14 business days to confirm the CNC status.
My question is: Why would the IRS not run the 433? Do you think its because the liability is under 10k? Do you think they have a way to confirm via their internal systems which TPs are presently receiving unemployment from the state? I find it hard to believe the IRS was being nice.
Pardon my being tardy for this party. Generally, a CIS (form 433 series) is not required when a taxpayer’s balance is less than $10k and the taxpayer is either unemployed or solely receiving SS income (See IRM sec.220.127.116.11.9).
Bear in mind, the CNC status is supposed to be reviewed annually. So, yes, if you tell the IRS that your client is unemployed or solely collecting SS income, they usually check the transcripts to confirm that. In the case of this year’s pandemic, some reps will just input the CNC without the CIS but when the transcripts come out the following year showing that they taxpayer generated taxable wages and/or self-employment income then the taxpayer will be contacted to provided an updated CIS or set up an IA.