| [ Collections Manual - TOC ] [ Ch 1 - Administrative Actions Unit (AAU) ] [ Ch 2 - Civil Actions Unit (CAU) ] [ Ch 3 - Special Actions Unit (SAU) ] | |
| [ 3.0 - The Functions of Special Actions Unit (SAU) ] [ 3.1 -Administrative Support Staff Functions ] [ 3.2 - Accounts Examiner Actions ] [ 3.3 - Collection Actions when Case is Dismissed, Discharged, or Closed ] | |
Chapter 3: Special Actions Unit |
comments to:Regulatory Integrity Division - Collections |
Mail processing, daily listings, file ordering and correspondence filing actions are the responsibility of assigned Administrative Assistants. In the absence of these personnel, all SAU AE’s will perform these tasks to ensure continuous flow of work.
Immediately upon arrival or upon receipt of tax run output process as follows:
This is a list of all adjustments made to quarterly charges in the most recent tax run.
Discard printouts of adjustment made by anyone other than SAU(AE’s).
Provide this product to the supervisor for review and retention. Each AE will get his or her own copies for review.
This is a list of allocations that did not process as requested.
Discard printouts of allocations requested by anyone other than SAU AE’s.
Provide the product to the supervisor for review and retention. Each SAU AE will get his or her own copies.
Give list to the SAU Remittance Allocation AE to process.
If list has Restriction Reason other than "B" make copy of the list for the CAU Supervisor.
Give original to the designated SAU AE for review and annotation.
Give to designated SAU Claims AE.
This list indicates those accounts that have deallocated payments as a result of updates to the Fiduciary record.
Give the printout to the designated AE for review and action.
This is the edit listing of the Bankruptcy Default Notices requested by SAU AE’s. This list is given to the SAU Supervisor.
The Bankruptcy Default Notices products and mailing matrix are given to the designated AE’s for review and approval for mailing.
The Monthly Unallocated Remittance list is given to the Remittance Allocation AE for review and appropriate actions.
Give report to the SAU Supervisor or designated AE for review and processing.
Give this list to the designated Remittance Allocation AE.
Place cover sheets on documents being forwarded to Micrographics.
Process mail in accordance with current mail procedures, sorting, delivering, and processing mail as appropriate.
All mail, claims copies, documents, etc., for the OAG are hand-carried (per their request) on an as-needed basis once a day, or more often when required.
Assist with Collections Section and Tax Department Mail distribution duties as assigned.
Access the U.S. Bankruptcy Courts for the four Districts of Texas as the first action each morning on the "Public Access to Court Electronic Records" (PACER)/Case Management/Electronic Case Filing (CM/ECF) system on the Internet.
Login
Type the User ID and Password at the login prompt and press Enter. The User ID and Password must be obtained from the SAU supervisor. There is no Optional Client Code.
Use Menu Options
Following the current PACER/CM/ECF format, select "Reports", and then select "Cases" for daily lists. Fill in the appropriate dialog boxes as displayed to run the reports. Select "Query" for specific case information. To obtain the information choose the appropriate option, i.e., for case information about open cases choose case information option, and for closed cases choose archived or closed case information option.
When searching for case information by case number, key case number without any case year prefix. For example, if the case number is 495-00013, key 95-00013 and press Enter.
When using PACER/CM/ECF to obtain a creditor mailing matrix choose the creditor list or mailing matrix option at the menu and key the requested information.
Use Print Function
Daily lists are printed in their entirety. The current cost per PACER/CM/ECF page of information (not selection lists) is .07 cents per page. This fee is set by the U.S. Bankruptcy Conference, and is billed to SAU by the PACER Service Center on a quarterly basis only.
NOTE: So as to minimize expense, determine what information you need. When updating docket information, select the date range immediately following the last date printed as found in SAU files.
Exit Pacer
Access to PACER/CM/ECF is a constant activity in SAU, and it is not always necessary to log off after each search. Once you have signed in to one court, you may then select another court from the court lists you have and proceed immediately to the menu selections. If you will not need access for a prolonged time, when away on break, lunch, and so on, it is best to log off.
These lists will be used to identify those employing units that have filed bankruptcy in the time period specified. There are instances when a filing is not noted in the court electronic records, is incomplete, or is deficient in some way, such as in the identifying numbers or styling.
Verify courts have not omitted any case numbers. If you find case numbers have been omitted, contact the respective court to get particulars of each case or attempt to get that case information from PACER/CM/ECF the next day.
TWC can participate in this free service at any time, by completing registration with the service and selecting the type of notification it desires. TWC is experiencing an increase in the amount of paper copies generated from electronic noticing, and will examine this procedure thoroughly before participating. Considerations include the volume of notifications, limitation as to types of Notices, and the establishment of a dedicated agency e-mail address for this purpose.
For all new filings, conduct a search of the Employer Master File by Social Security Number (SSN) or Federal Identification Number (FEIN), as appropriate. If you do not find an employer match, conduct an "Alpha" search. When new listings match an employer account or accounts, determine the status of the account and delinquency for each account by reviewing the Master Record , and the Delinquency Summary or the Detail Delinquency screens.
Draw a line under SSN or FEIN across the page and write the account number and amount due. If the account’s delinquency has been reclassified to uncollectible then annotate as "I-0-$ owed (U)."
"I" indicates the employer account is inactive, "O" indicates the employer’s reports are not delinquent, and $32.98 (U) indicates the delinquency of $32.98 has been reclassified to Uncollectible. Any accounts which have been terminated are coded "T." Records and comments are not added to Error accounts, and rarely to Not Liable accounts.
If the debtor is our employer, annotate the PACER/CM/ECF as follows:Account Number(s)
I-0-32.98(U)
If the debtor is an officer or partner or employer account, annotate the print as follows:
Account Number(s)
I-0-32.98(U) I-032.98(U)
(Off.) (PTR.)
Annotate all active accounts and inactive accounts with a delinquency.
Account Number(s)
A-0-15.00 I-0-52.98 A-0-0
(OFF.) (PTR.)
If a search results in more than one match review all accounts.
A debtor may have an individual employer account number, may be an officer of one or more corporations, or may be a partner in one or more partnerships.
Using the Fiduciary Multiple Records Update screen, create a Fiduciary record for all employers (individual, corporations, and partnerships) if PACER/CM/ECF records or bankruptcy notices show that employer is a debtor. This action creates the Fiduciary record, and establishes a System Stop which "freezes" or adjusts late payment interest and signals to all Tax personnel that normal collection, status, and account correction actions are now stayed. Any matters pertaining to an account must now be directed to SAU for review.
The placing of the Fiduciary Record System Stop also prevents on-line access to the account, so as to give effect to the protections under the Automatic Stay of the Bankruptcy Code. In these instances, the employer will usually be required to file reports, make payments, and update the account through conventional means. Employers may contact SAU electronically by sending an e-mail to us at RED.taxbankruptcy@twc.state.tx.us, or by calling 512-463-2872. This will allow SAU to discuss the situation, and respond accordingly.
If a partner in a partnership files a petition, we may establish a Fiduciary record for the purpose of staying collection action against that person or entity. A complete comment will be added to the Delinquency Comments screen. If a claim is filed, the Fiduciary record will be updated and then deleted so as to allow collection action to proceed against non-bankrupt partners. A particular "Officer/Partner Bankrupt" Stop shall be placed on the account in addition to any Fiduciary Record System Stop that may be placed.
Establishment of a Fiduciary record must not interfere with on-going collection actions against the non-bankrupt partners. Review the account Delinquency Summary and Delinquency Comments screens to determine what other actions are in progress, and coordinate with appropriate personnel.
No fiduciary record will be created for the corporation’s account if an officer of the corporation
is a debtor. For officer bankruptcies add debtor information (name, chapter, case number, petition
date, and District/Division) to the Delinquency Comments screen in the follow format:
Officer (debtor name) BKT/Ch/Pet.date 00-00-00 case no. 00-00000/ District (abbreviate when possible).
On the Fiduciary Multiple Records Update Screen, key the account number, chapter number (7, 9, 11, 12, 13), case number, filing date, and bar date information. The bar date for TWC is 180 days from the petition date (since we are a governmental unit). Be especially cognizant of calculating bar dates when a leap year is involved.
There may have been previous filings by an employer, which means that there may be a Fiduciary record for that case already on the screen, and a folder in SAU files. The old record must be updated and deleted before the current record is established, so that interest entries will update correctly.
For those accounts requiring or anticipated to require claims, order the tax folders to the Claims user ID. Upon receipt of files the next workday, verify the bar dates, annotate that information in the folder, and place the folders in the appropriate review month on that shelf. Do not request files for employer accounts for which delinquency has been reclassified to Uncollectible or if the debtor is an officer of corporation, and employer has no delinquent reports or taxes (A-0-0). Order in any file for which there is an "active" debt.
On a daily basis, open all bankruptcy mail in the SAU Bankruptcy mailbox. Sort mail into three categories: First Meeting Notices; Objections, Subpoenas or Notices to Appear; and other bankruptcy notices or correspondence. Any Statements of Account, employer correspondence, local office forms and mail addressed to the SAU Supervisor should go to the appropriate personnel. File-stamped copies of claims will be filed in the appropriate bankruptcy file. Envelopes containing checks for bankrupt accounts must be given to the designated Allocation Remittance AE immediately. Checks for other units will be taken to those units immediately. Misrouted mail will be reviewed for the correct addressee, and referred to an AE when necessary.
Perform searches for bankrupt employer accounts using available identifying numbers. Perform "Alpha" searches on all notices without numbers, and use available information to verify the account, such as address, ZIP code, and so on.
Annotate the notice with the account number, status of the account and the delinquency. Update the account information as appropriate, or forward the correspondence to the appropriate AE for review and action.
Order tax folders needing claims filed to the Claims User ID. File the documents with the appropriate folders.
Chapter 7 cases that are "No Asset" will be tracked for four months to check for discovery of assets or for discharge (individual).
If TWC will not be filing a claim in the proceeding, update the account record to reflect action taken. After updating the account record and annotating the notice with action taken, place the notice in the Micrographics imaging box to be filmed.
Notices on individuals that do not appear to have an employer account should be bundled and forwarded daily to the Performance Integrity Department.
Objections, and any Subpoenas, Summonses, or Notices to Appear concerning a bankruptcy case or official of the TWC are given to the unit Supervisor or an experienced AE for immediate review and action according to current guidelines. Highlight the TWC information.
These matters are extremely important and time-sensitive, and can directly affect the protections afforded to TWC as a governmental entity by the 11th Amendment to the United States Constitution, Waiver of Sovereign Immunity (Section 106 of the Code).
The majority of Notices will be unrelated to any TWC account, or will be of informational value only, and will be retained only if they appear to impact TWC.
If any mail is addressed to a specific AE, it will be given to him or her.
However, there are many notices that are crucial to timely and correct actions by SAU, and these require careful handling:
Discharge notices are important, as they will determine whether or not TWC is able to resume collection action on a bankrupt.
Generally speaking, a discharge in an individual Chapter 7 does not discharge the tax debt, or lien securing the debt. There are exceptions, and each case must be promptly reviewed by an AE to determine the disposition of the account.
Similarly, a discharge in a Chapter 13 will discharge the debtor, unless TWC was not listed, and so on. These discharges must be reviewed promptly by an AE for proper disposition.
When a notice is received that a plan is confirmed, enter the confirmation date, and then give the notice to the appropriate AE to review, and place into the tracking system for payments or default.
If a notice specifically schedules the Commission for payment, and a thorough name search of the Employer Master File, court, and trustee information do not match the debtor to an employer account, provide the notice to an AE for further research. He/she will confer with Labor Law Collections to see if the notice is for them. Should nothing be found, forward the notice to the Office of Performance Integrity for their review.
Plans (Chapter 9, 11, 12 and 13) for debtor employers will be given to the appropriate AE to determine if and how TWC is to be treated. The examiner will annotate the Fiduciary Record memo field and/or the Delinquency Comments with particulars.
Conversion notices require updating of the Fiduciary Record with the change in Chapter type, assets information, new bar dates, and other information. The notice will then be given to the appropriate AE to review.
These requests require prompt review and reply by the Remittance Allocation AE, or other qualified AE. These involve timely account review, and reply to the trustee/representative.
Conduct a numerical search or an alpha search for each dismissal notice. When searches are complete, sort into final notices and dismissals.
For each dismissal notice, key dismissal date in "memo" field of the Fiduciary record screen, or update the Delinquency Comments screen as appropriate.
If the account has delinquency that meets current collection criteria, order the employer folder in for a bankruptcy Default Notice. If the delinquency is large, statute is a factor, or some other unusual circumstance is evident, notify the appropriate AE immediately of the situation. When you receive the file associate it with the appropriate dismissal notice and any bankruptcy file, and either transfer it to an AE if necessary for immediate action, or place in the cabinet designated for default notices.
For each Final Notice for an account in which a claim was filed, key "FIN.FIL./00-00-00" in the "memo" field of the Delinquency Comments screen for that account. Request and process the tax folder for a default notice as above.
For accounts in which no claim was filed, update the Fiduciary record or the Delinquency Comments screen, and send the annotated notice to be microfilmed on the account as a Closed Bankruptcy Document.
Files are maintained by employer account numbers. Bankruptcy files and correspondence are to be filed daily.
Give the account-identified Motions to the appropriate AE to review and process.
Give address change notices or requests, accompanied by the current court address from the Docket for the debtor to the appropriate AE to review.
If account review during creation of the Fiduciary records indicates that this action has been taken or is contemplated, immediately notify the Administrative Actions Unit (AAU) or Civil Actions Unit (CAU) Supervisors or other AE’s or Administrative Assistants in those units of this fact. This will allow appropriate action to be taken on that transaction. Bring such information to the immediate attention of the appropriate SAU examiner, also.
If a call or letter is received from an outside party concerning freezes or levies, refer the matter to an experienced SAU or AAU AE immediately.
Give C-5/C-7 forms to the appropriate AE to review and process.
SAU is the responsible unit for processing these notices for possible claims, just as with bankrupt accounts. Give these notices immediately to the designated AE’s for disposition. Accounts are updated through the Multiple Fiduciary Records screen with the following case types:
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