TAX DIVISION JUDGMENT COLLECTION MANUAL

TABLE OF CONTENTS

1. Introduction
   1. Timeliness
   2. Referral or Retention
   3. Using Paralegals
   4. Reporting Activities
2. Prejudgment: Protecting the Government's Ability to Collect Taxes
   1. Introduction: Preserving the Status Quo
   2. The Importance of the Notice of Federal Tax Lien
   3. The Presuit Letter and the Complaint
   4. Lis Pendens
   5. Prejudgment Remedies Under the Federal Debt Collection Procedures Act
   6. Injunctions and Receiverships
   7. Preparing for Collection by Obtaining Copies of Tax Returns
3. Entering Judgment, Stays of Collection, and Obtaining a Judgment Lien
   1. What is a Judgment?
   2. Form of Judgment
   3. The Judgment Should Include an Award of Costs
   4. Ten-Percent Surcharge for Costs of Collection
   5. Stays of Collection
      1. Automatic Stay of Collection of a Judgment
      2. Motions to Stay Collection of a Judgment
      3. Posting a Bond as a Condition of a Stay
   6. Judgment Lien
      1. United States District Courts
      2. The Court of Federal Claims
      3. United States Bankruptcy Courts
4. Collecting the Judgment
   1. An Overview
   2. Demand for Payment and Instituting Rule 69 Discovery
   3. More on Finding Taxpayers' Assets
      1. Tax Returns
      2. Additional Rule 69 Discovery
      3. Fraudulent Conveyances & Nominee Ownership
      4. More on Nominees, Alter Egos and Successors
      5. Using Computerized Database Services to Locate Debtors' Assets
      6. Other Sources of Information on Collecting Judgments
   4. Evaluating Collection Potential
      1. Priority: The Federal Tax Lien
      2. Priority: The Judgment Lien
      3. Effect, if any, of State Exemption Statutes
      4. Extent of Survival of Tax Claims After Bankruptcy
   5. Liquidating Assets
      1. Administrative Collection by the IRS
      2. Sale of Property
         1. Receivers
         2. Auctions and Private Sales Under 28 U.S.C. §§ 2001, 2002, and 2004
         3. PALS
         4. Selling Securities
      3. The Federal Debt Collection Procedures Act
         1. Notice and Other Preconditions
         2. Garnishment
         3. Court-Ordered Installment Payments
      4. Collecting Specific Assets
         1. IRAs and Other Retirement Funds
         2. Securities and Notes
         3. Wages
         4. Co-owned Property
5. Settlements
6. Reporting Collection Activities to the Case Management System
7. Closing of Cases and Reference of Judgements for Further Collection Activity
   1. When and Where
   2. Steps to Refer the Judgment to the IRS

EXHIBITS (in PDF Format)

Exhibit 1 - Letter to Internal Revenue Service Campus

Exhibit 2 - Internal Revenue Service Campuses Addresses and Telephone List

Exhibit 3 - Final Judgment

Exhibit 4 - Agreed Judgment

Exhibit 5 - Order Granting Summary Judgment to Plantiff United States of America

Exhibit 6 - Title 26 IRS §6673(b) Penalty and Costs Assessment Data

Exhibit 7 - Letter to United States Attorney re: Filing of Abstract of Judgment, Abstract of Judgment Form, and Instructions

Exhibit 8 - Demand Letter to Counsel

Exhibit 9 - Form 433-A - Collection Information Statement for Wage Earners and Self-Employed Individuals

Exhibit 10 - United States' Interrogatories to Judgment Debtor

Exhibit 11 - United States' Request for Production of Documents to Judgment Debtor

Exhibit 12 - Motion to Compel Answers to Interrogatories and Request foor Production

Exhibit 13 - Judgment Creditor: Motion to Compel-Sample of Authorities

Exhibit 14 - Nominees, Alter Egos and Successors

Exhibit 15 - Bibliography of helpful collections sources

Exhibit 16 - Motion for Order of Sale

Exhibit 17 - Order of Sale

Exhibit 18 - Treasury Department Certification Form

Exhibit 19 - United States' Motion for Appointment of Receiver

Exhibit 19A - Order Appointing Receiver for Real Property

Exhibit 20 - Letter to Prospective Buyer

Exhibit 21 - United States' Motion for Confirmation of Sale

Exhibit 21A - Order Confirming Judicial Sale

Exhibit 22 - Receiver's Deed

Exhibit 23 - United States' Motion for Order of Distribution

Exhibit 23A - Order Distributing Proceeds of Judicial Sale

Exhibit 24 - United States' Motion for Order to Vacate

Exhibit 24A - Order to Vacate

Exhibit 25 - Notice for a Writ of Execution or Garnishment

Exhibit 26 - Notice and Motion for Court-Ordered Installment Payments

Exhibit 26A - Order Setting Hearing on United States' Motion for Installment Payment Order

Exhibit 27 - Tax Doc Judgment Collection Activity Codes

Exhibit 28 - Letter to Technical Support - Referral of Judgment Collection

Exhibit 29 - Technical Support - Advisory Groups

Exhibit 30 - Letter to Immigration and Naturalization Service - Request for Border Check