There are two categories of tax judgment collection cases, for which the United States Attorney’s Offices have different responsibilities: cases that the Tax Division has formally referred to a United States Attorney’s Office for collection, and cases in which the United States Attorney’s Office assists the Tax Division in collection. <i>See </i>Tax Division Directive No. 139, located in 28 C.F.R. Pt. O, Subpt. Y, App., “Redelegation of Authority to Compromise and Close Civil Claims.”

1. A. Formal judgment collection referrals. On occasion, and only after consultation, the Tax Division may formally refer a judgment for collection to a United States Attorney’s Office. When it makes a formal referral, the Tax Division will send the United States Attorney’s Office a letter stating that it has formally referred the judgment collection case.
   In these formal judgment collection referrals, the United States Attorney’s Office has the primary responsibility to take further collection efforts and accordingly should take all necessary steps to collect the judgment and to protect the Government’s interests. When it refers the case to a United States Attorney’s Office, the Tax Division may concurrently request the IRS Advisory Services to advise the United States Attorney’s Office directly of the existence of potential assets for collection.
   The United States Attorney’s Office should advise the Tax Division if any problems arise, including any disagreements between the United States Attorney’s Office and the IRS about the handling of a formally-referred case. The Tax Division then will assist in resolving those problems.
   Should it appear that the Government needs to pursue additional litigation in order to collect the judgment, the Tax Division may withdraw the referral to the United States Attorney’s Office and take responsibility for the litigation.
2. B. Case Assistance. Where the Tax Division retains primary collection responsibility and has not formally referred the case, the United States Attorney’s Office has more limited responsibilities. That Office may have open files and furnish assistance to the Tax Division trial attorney who is assigned to the case.

[updated April 2018]