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Part 21. Customer Account Services

Chapter 2. Systems and Research Programs

Section 4. Master File Accounts Maintenance

21.2.4  Master File Accounts Maintenance

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21.2.4.1  (12-01-2006)
Accounts Maintenance Overview

  1. The Accounts Maintenance (AM) Project identifies Service areas where items do not process through the system correctly or completely. (See Exhibit 21.2.4–1, Master File Accounts Maintenance Flowchart, for an overview of the process.

  2. This section provides instructions to correct problem modules so they can move to the retention register.

    • Most of these modules remain on the Individual Master File (IMF) or Business Master File (BMF).

    • AMnn, STAT and AM-X transcripts (IMF and BMF) identify unresolved accounts after a certain length of time. (See Exhibit 21.2.4-3, AM Freeze Table IRAF, and Exhibit 21.2.4-4, AM Freeze Table IMF/BMF, for specific transcript extraction criteria.)

  3. This section provides guidance for controlling and resolving frozen and unsettled conditions on the Master Files.

21.2.4.1.1  (07-01-2001)
Accounts Maintenance Mission and Guidelines

  1. The overall mission of the Account Maintenance (AM) program is to:

    • Identify unresolved accounts on the Master Files and produce AM transcripts for resolution.

    • Provide feedback to areas (and Quality Assurance) whose actions caused the unresolved conditions.

    • Inform Headquarters of systemic or procedural deficiencies.

    • Coordinate all open controls with the appropriate functions.

  2. The overall guidelines of the AM program are to:

    • Review and resolve all freezes or conditions that result in either an AM or DIAG–Q transcript.

    • Maintain adequate staffing for timely resolution of initial and follow-up transcripts.

    • Work with the Statutes team to minimize barred assessments.

21.2.4.2  (12-01-2000)
What Is Accounts Maintenance?

  1. Accounts Maintenance (AM) is general account resolution and research of unresolved accounts.

21.2.4.3  (08-01-2005)
Accounts Maintenance Research

  1. This section discusses research for Account Maintenance. (See IRM 25.6 (Statute Limitations) for detailed information on statute limitations. See IRM 25.6.6.8.1 concerning the suspension of the period of limitations on refunds during the period a taxpayer is "financially disabled" (unable to manage affairs).

    Note:

    If the Assessment Statute Expiration Date (ASED) is within 180 days for AM transcript cases (90 days for non-transcript) and corrective action may require a tax assessment, refer the case to Statute.

21.2.4.3.1  (12-01-2006)
Computer Output

  1. The automated case control system uses the Case Control File (CCF) and the Case Control Activity System (CCA). Use Command Code CCASG to research, assign, update, or close cases on the CCF.

    Note:

    Always use Action Code "5" on follow-up cases when using CCASG.

  2. After real time, Integrated Data Retrieval System (IDRS) uses the information to update/establish control bases. IDRS assigns a control number to each category code worked in the AM function. CCA uses this number to establish control bases for each record with an unresolved AM condition identified during the extract cycle.

  3. Generated listings identify whether cases are assigned or unassigned on the CCF.

    1. Cases drop off the CCF 90 days after they are assigned on IDRS.

    2. Unassigned cases drop off the CCF after 45 days, at which time batch processing capability is lost.

  4. CCA assigns follow-up cases after reviewing IDRS case control:

    If Then
    IDRS does not have an open control base An open control base will be established.
    IDRS has an open control base with the same unit number and category code as the follow-up case 1. CCA uses the existing activity code, status, IRS received date and employee number to update the control base.
    2. "AM Case Control Updates for Follow-Up Cases" report generates.

    Note:

    Cases listed on the report also appear on the CCA Assignment Listings. Do not reassign as new cases.

  5. The daily 4541 (IMF) and 5541 (BMF) Reports identify follow-up cases where a prior control is open. Do NOT count these as new receipts unless the original control is closed. Contact the IDRS Support Group for these listings.

21.2.4.3.1.1  (07-01-2001)
Case Control Activity System

  1. The Case Control Activity System establishes AM cases (original and follow-up) on IDRS in "A" status. Computer Operations inputs the AM case control files (IMF File 712–07–11, BMF File 712–06–16) to assign open control bases to the AM team, prior to routing the transcripts to AM. Each case must have the Category "AMnn" and the IRS received date established during the cycle extract.

  2. Computer Operations routes the following AM transcripts directly to the responsible area; they are not assigned to AM.

    • 06–W Claim Pending

    • 07–V ADP Credit to Non-Master File Liability

    • 13–G Expired Installment

    • 14–0 Barred Refund STEX

    • 15–U Erroneous Refund

    • 17–R TDI Refund Freeze (IMF only)

    • 18–H Credit Balance Module TC 59X

    • 19–Y Offer in Compromise Transcripts

    • 23–W Transcripts

    • 24–J Math Error

    • 25–R Additional Liability Pending (AUR)

    • 27–F AUR

    • 28–Y Unreversed TC 480

    Note:

    Do not control or count these transcripts in OFP 710–38530 or 710-38540. See IRM 3.13.62, Media Transport and Control, for routing.

  3. If transcripts with erroneous data (i.e., the module is in zero balance) are received, alert Headquarters and wait for further instructions.

21.2.4.3.1.2  (12-01-2000)
AM Transmittal and Analysis Data Sheet

  1. The AM Transmittal and Analysis Data Sheet identifies the number of Master File accounts that meet predetermined extraction criteria. The counts in the "Non-Statute Selected Count" and "Follow-Up Non-Statute" columns indicate the number of cases that generated.

  2. A separate IMF and BMF report generates. If the report is not received, contact Computer Operations and have them research file numbers 712–07–15–IMF and/or 712–06–11– BMF.

21.2.4.3.1.3  (12-01-2006)
AM Transcripts

  1. An AM transcript generates for each module (IRAF, IMF, and BMF) with an unresolved condition. A specific module transcript generates for all IMF/BMF AM categories with the numeric indicator for the AM category met (see Exhibit 21.2.4–4, AM Freeze Table IMF/BMF). If the case meets the age criteria for more than one freeze or unsettled condition in the same extract cycle, an "M" appears. If it is a follow-up transcript, an "F" appears.

  2. If you do not receive the transcripts, management should contact Computer Operations to research File Numbers 460–29–11–IMF and/or 701–04–11– BMF.

  3. All AMnn transcripts are sorted first by Accounts Receivable large dollar cases then by tax period (the earliest tax periods most likely have the earliest ASEDs). Look for the earliest tax periods at the top of each first alert group and each follow-up group within the numeric AM code.

21.2.4.3.1.4  (12-01-2006)
AM Follow-Up Transcripts

  1. An AM "Follow-Up" transcript generates 26 cycles after the original alert and every 26 cycles until the AM case:

    • Is resolved.

    • Meets "STATUTE LIMITATION" criteria.

    • Is automatically removed to the IMF Level 4.

    • Is moved to the Third Level of the BMF.

      Note:

      Exception: Follow-up transcripts will not generate on AM12 transcripts. See IRM 21.2.4.4.48.1(2)b.

  2. When transferring an original case to another function, also transfer the follow-up transcript unless specific procedures in this IRM instruct otherwise.

21.2.4.3.1.5  (12-01-2006)
AM Reporting

  1. To assist in managing inventory, several reports are generated. The IDRS category code for AM cases is AMnn, "nn" is the numeric indicator of the AM category met. The weekly "Accounts Maintenance Inventory Report," numbered CCA 41/41 includes:

    • IDRS AM inventory by category code (AM09, AM12, etc.).

    • Follow-up data.

    • All open suspense and follow-up cases, current and old.

    Note:

    All unresolved cases must show in inventory.

  2. A separate report generates for each file source (IMF and BMF). Also use the AMIR report (see IRM 3.30.124, Campus Monitoring Reports).

21.2.4.3.1.6  (12-01-2000)
Overage Listing

  1. This listing identifies cases assigned to a specific individual that are unresolved for 120 days. Give aged cases, or cases that will age the following week, priority attention.

21.2.4.3.1.7  (12-01-2006)
Diagnostic Transcripts

  1. Diagnostic (DIAG) Transcripts identify unresolved IDRS conditions. They may also identify operational problems in other functional areas. There are two types of diagnostics:

    1. DIAG-P (Transactions): Issued for modules with transactions pending for an abnormal length of time (e.g., RJ, AP/EP, TP, PN, RS, UNNN). The IDRS Support Group works these transcripts.

    2. DIAG-Q (Tax Modules): Issued weekly to identify IDRS problem modules and provide a random review of IDRS file contents. They help identify unnecessary accounts on IDRS that can be removed. The AM team works these transcripts.

  2. Certain DIAG-Q transcripts are reviewed in other areas and then routed to AM:

    1. The IDRS Support Group routes type "1-9" transcripts with reason code 33 to the AM team, excluding conditions not resolved in AM. (Reason code 33 indicates a freeze or hold condition is on the module, which should have been previously identified by an AM transcript.)

    2. Other areas may route transcripts to AM. For example, CSCO routes transcripts with Reason Code EE or QQ, and a TC 610 when the ASED is more than six months, to AM.

  3. Resolve these transcripts using general AM procedures and specific instructions for the particular freeze code identified. Also use IDRS control base information to determine why the DIAG was issued (i.e., previous action taken did not resolve the condition identified). See IRM 2.9.1, Integrated Data Retrieval System (IDRS), for additional information.

    If Then
    A DIAG without a previous AM control base is received The AM manager should determine if a systemic problem exists within the AM program.
    A problem is identified (e.g., the AM program does not search for this condition) Contact the P&A Program Analyst and prepare Form 5391, Systems Change Request, if necessary.
    ASED is expired or will expire within 180 days Route the transcript to the Statute function.

21.2.4.3.1.8  (12-01-2000)
Activity Codes

  1. Use Exhibit 21.2.4–5, Activity Codes Used to Work AM Cases, when working AM cases.

21.2.4.4  (12-01-2006)
Procedures for Accounts Maintenance

  1. The following section explains the procedures for Account Maintenance.

  2. These procedures do not circumvent the Quality Assurance Program within a campus.

  3. Initial AM and follow-up transcripts often reflect problems in other processing areas. The AM Supervisor, Work Leader and Tax Examiners should watch for recurring problems in the extraction. When problems persist or follow-ups continue to generate, the AM Supervisor will:

    • Inform the responsible area and provide examples and volume figures, whenever possible.

    • Follow up on problems to ensure corrective actions were taken.

  4. Report AM Transmittal and Analysis Data Sheets and AM transcripts containing erroneous data to the AM Analyst, Policies, Procedures & Guidance (PPG).

21.2.4.4.1  (12-01-2006)
AM General Processing

  1. These instructions apply to all AM transcripts. These instructions also apply to DIAG-Q type 1–9 transcripts with Reason Code 33 and certain DIAG-Q transcripts routed to AM for resolution.

21.2.4.4.2  (12-01-2006)
Accounts Maintenance Resolution

  1. To resolve freezes or unsettled conditions, prepare and input the required documents. If the corrective action revises tax, penalty, interest assessments, withholding or other refundable credits, input adjustment. (See IRM 21.5.1, IRM General Adjustments; IRM 21.5.2, Adjustment Guidelines; IRM 21.6.7, Adjusting Individual Tax Accounts; IRM 21.6.5, Individual Retirement Arrangements; and IRM 21.7, Business Tax Returns and Non-Master File Accounts.)

    • Adjustment action : Make the adjustment. Do not reassign the case to Adjustments, unless the case is technical/complicated (e.g. Net Operating Loss (NOL), tentative carryback, Scrambled SSN).

    • Credit transfer: Make the transfer. Follow procedures in IRM 21.5.8, Credit Transfers.

    • Research: Follow all research instructions in IRM 21.2.4.

    • History action sheet or transcript: Record and date the steps used to resolve the freeze or unsettled condition; list the steps in chronological order. (Local management decides whether to use the transcript or history sheet.)

    • Multiple freezes in an account: Resolve if the AM criteria for each freeze or condition has been met, unless instructions under the specific freeze state otherwise. An "M" on the transcript identifies multiple conditions (a subsequent transcript may generate while working the current case).

      Note:

      Before inputting a closing action that will affect other freezes or conditions in the account (for which an AM transcript was not issued), coordinate with the affected function to determine corrective action.

21.2.4.4.3  (10-01-2007)
Accounts Maintenance Initial Processing

  1. The AM Control function receives copies of the AM Transmittal & Analysis Data Sheet, related AM CCA Assigned/Unassigned listings and AM transcripts. This area will:

    1. Verify CCA Assigned/Unassigned listings with transcript volume and secure CC TXMOD prints to replace missing transcripts. (For missing transcripts, use IRS received date on the listings to control case.)

    2. Use the IDRS Listings to identify multiples to AM; pull transcripts for these cases and associate with open case. Do not count these cases in the AM inventory. Use 710–38530 or 710–38540.

    3. Reassign cases to the Tax Examiner; use Command Code CCASG or ACTON. Each campus determines work distribution (e.g., prebatched, individual inventory leveling). Cases should remain in "A" status. See IRMs 21.2.4.3.1 and 2.4.42. for CCASG information.

  2. Tax Examiners should screen the transcripts for quick closures. These are cases (with):

    • Pending transactions that will resolve the AM freeze and module balance.

    • Multiple IDRS control bases with another campus area. Coordinate with the other area to determine whether your AM transcript will be resolved based on their case. If so, close the case to them. If not, or if unable to contact the other area, continue with specific AM procedures.

    • An unreversed Criminal Investigation (CI) freeze in the module. Contact CI; see IRM 21.2.4.4.23.

    • An open AIMS Control, TC 420 or TC 424 posted (except 08 —X and 16 —J freeze cases); see IRM 21.2.4.4.18.

    • To be sent to another campus; refer to IRM 21.2.4.4.12.

    • An unreversed TC 520 in the account; see IRM 21.2.4.4.17.

    • TC 922 an Underreporter process code posted, and transcript appears to be a result of or related to Automated Underreporter (AUR); see IRM 21.3.1.4.60 to determine if you should refer to the AUR function at the campus that originated the TC 922. If AUR returns the case, indicating the AUR issue was resolved, AM must resolve the freeze. If AUR returns the case, indicating the payment is not related to AUR and the AUR case is still open, AM should close the transcript case.

    • An NMF liability freeze (V-,TC 130-18); route to NMF accounting unit.

    • An Offer-in-Compromise freeze (—Y, TC 480/780); route to Compliance Services Collection Operations (CSCO).

  3. Research the remaining cases. Request only modules and accounts required. Avoid requesting complete Microfilm Replacement System (MRS) transcripts. Associate the received documents with the related case or retain in a separate file in the same sequence as the related cases.

  4. As long as an AM case is workable, it remains in "A" status on IDRS. A case is workable unless it is temporarily in "M" status due to a long-term delay in processing that is beyond the assignee's control:

    • Waiting for a reply from the taxpayer

    • Waiting for a reply from another campus

    • Waiting for special search

21.2.4.4.4  (12-01-2006)
Microfilm Replacement System

  1. The Microfilm Replacement System (MRS) is an automated research system that eliminates most microfilm research.

    1. Enter account research requests through IDRS terminals. The requests are transmitted to the Enterprise Computing Center at Martinsburg (MCC) daily. MCC extracts the needed data from the Master Files overnight and transmits the results to the campuses where they are printed and distributed. Most requests are filled within 24 hours.

    2. Use alpha research to locate Taxpayer Identification Numbers (TINs) during real time on IDRS. Enter selected elements of the taxpayer's name and address; the potential matches display immediately.

  2. Not all microfilm was converted to MRS; the Microfilm team researches the unconverted microfilm. The residual microfilms are as follows:

    1. All Retention Register and Archival Microfilm (current year Retention Register is accessible through MRS). Requests are processed once a week. (Input IMFOLB during the week to request modules from retention. The tapes are run on Sunday; use MFREQ,C to call up the module on Monday—look for TC 370 Doc Code 52 for original DLN.)

    2. Partnership Name Directory

    3. Federal Tax Deposit (FTD) Microfilm (except SCRIPs processed FTDs)

    4. Combined Annual Wage Reporting (CAWR) Microfilm Index and Module Register

    5. Form 1042 Microfilm (PSC only)

    6. Social Security Administration (SSA) produced W–2/W–3 CAWR Microfilm (Latham, NY only)

21.2.4.4.5  (12-01-2006)
Research Tools

  1. Use these command codes to resolve AM freeze condition cases:

    • TXMOD

    • NAMES

    • NAMEE, NAMEI, NAMEB

    • BMFOL, IMFOL, IRPTRL

    • INTST

    • COMPA, COMPAF, COMPAD

    • MFTRA

    • FFINQ

    • SUMRY

    • BRTVU

    • RTVUE, TRDBV

    • INOLE, ENMOD

    • AMDIS

    • TDINQ

    • STAUP and ACTON

    • UPTIN, UPCAS

    • DUPOL

      Use these other resources:

    • Current computer-generated transcripts, including entity transcripts

    • Current and closed unpostables and rejects

    • Non-Master File data

    • Service Center Control File (SCCF)

    • Dishonored Check File (open and closed)

    • Unidentified Remittance file (open and closed)

    • 3913 File (Returned Refund Check)

    • Power of Attorney File (CAF)

    • Source Document File

    • Taxpayer contact (phone or correspondence)

    • Contact with other areas within the campus

  2. To help resolve freezes, use the daily deposit microfilm (copies of deposited checks), and maintain updated copies of the IRMs in the AM team.

21.2.4.4.6  (12-01-2006)
Interest on Unprocessable Returns

  1. Do not calculate interest on an overpayment until a return is in processable form (e.g., missing signature provided). The following applies to all types of tax, including windfall profits tax returns.

    1. The Return Processable Date (Correspondence Received Date) appears on the Master File and MRS. Use this date to compute interest on overpayments. If the original return was processable, but we requested and taxpayer provided additional information, use the original received date or return due date, whichever is later when computing interest.

      Caution:

      If correspondence was for a Form W–2 ONLY, examine the return for an earlier received date.

    2. If the Return Processable Date (RPD) is blank, compute the interest from the received date, return due date, or payment date, whichever is later.

    3. If the taxpayer provides the information that caused the unprocessable condition, use CC REQ54 to adjust the RPD.

21.2.4.4.7  (10-01-2007)
Penalty and Interest Adjustments

  1. Be cautious when adjusting penalty and interest; do not unnecessarily restrict an account. When abating penalty or interest, attach an explanation supporting the abatement to your adjustment document. If increasing or decreasing penalty/interest, attach the computations supporting the corrected figures. Refer to IRM 20.1 (Penalties) and IRM 20.2 (Interest) for information regarding adjusting for penalties and interest.

21.2.4.4.8  (12-01-2006)
Civil Penalty Modules

  1. Examination, TE/GE, Collection and Information Return Processing( IRP) assess certain civil penalties that penalize persons for acts related to another’s tax return. Examples include the Trust Fund Recovery Penalty and Return Preparer Penalties.

  2. Two Master File Tax Codes (MFT) record assessments, abatements and other account actions:

    • MFT 55: processed on IMF

    • MFT 13: processed on BMF

  3. Penalties post as a TC 240 with a three-digit reference number, which identifies the penalty type and the function that assessed the penalty. A TC 290 -0- is input along with TC 240. A TC 150 never posts to a civil penalty module.Refer to Document 6209 for a list of civil penalty reference numbers.

    If Then
    Module contains a Trust Fund Recovery penalty (TC 240 with ref. 618) Route the transcript to Ogden CSCO.
    Module contains a W–4 penalty (TC 240 with ref. 615, 616) Forward all assessments, penalty abatement requests, and related correspondence to Fresno Compliance Services, Stop 81403.

  4. Refer to IRM 20.1 (Penalties), for an explanation of civil penalties.

21.2.4.4.8.1  (12-01-2006)
Civil Penalties Processing

  1. AM should identify and work unresolved conditions. Because these modules are non-return modules, some AM conditions may not apply and some are identified by a TC 240 instead of the TC 150.

    Note:

    STAT transcripts do not generate based on a "true" ASED; the statute bar date depends on taxpayer action or non-action. Therefore, STAT transcripts are extracted using the minimum amount of time until the ASED. (The "dummy" ASED date for these accounts is two years and six months from the date of the control DLN in the module.)

  2. Process AM transcripts received for civil penalty modules (MFTs 13/55) according to general AM instructions and specific instructions for the particular category code or transcript type generated. Also use the following guidelines:

  3. If the identified account contains a credit and no TC 240:

    1. Look for a possible open case in IRP, Examination, Collection, TE/GE, or account where the penalty may be posted.

    2. Review IDRS (valid and invalid segments, spouse's SSN), NMF, MFT 30 audit assessments and any open balance accounts.

    3. If a payment was intended for another account, transfer the credit.

    4. If necessary, request the payment document, Doc Code 54 or 47 documents from files (look for an unassessed penalty listed on audit papers or the payment voucher), or contact the taxpayer and ask why the payment was submitted.

    5. If research or the taxpayer's response indicates a penalty should be assessed, route to the responsible area.

    6. If unable to determine where to apply the payment, see IRM 21.2.4.4.15.

  4. If there is a TC 240 in the account and AM research does not resolve it:

    1. Contact the area responsible for assessing the penalty for assistance.

    2. If there are multiple penalties in the account, contact the area responsible for the last assessed penalty.

    Note:

    Blocking Series 609-629 for IMF and 879-899 for BMF identify an IRP assessed penalty.

  5. A TC 290 for zero input on a civil penalty module must be input along with the TC 240, which posts on Master File. If a freeze should be released, input necessary transactions on MFT 13 accounts to reverse freezes (e.g., TC 572 to release TC 570).

  6. Use Blocking Series 52 to post the first manual TC 24X in an account and 53 to post subsequent penalties. Use Blocking Series 15 to release a freeze.

21.2.4.4.9  (12-01-2006)
Accounts Maintenance Correspondence

  1. Follow the guidelines provided in IRM 1.10.1, The Internal Revenue Correspondence Manual, when corresponding with taxpayers.

  2. Accounts Maintenance is responsible for requesting any documentation necessary to resolve AM conditions. Initiate correspondence even if another function previously sent correspondence. (See Exhibit 21.2.4-2, Letters Used to Resolve AM Cases.)

  3. Correspondence is also required to explain:

    1. How the account was corrected.

    2. Taxpayer errors discovered in processing which caused or will cause processing delays (only if there was not prior notification).

  4. Send a closing letter to the taxpayer when releasing a freeze or resolving a condition that results in either a refund or balance due. This applies to all cases, EXCEPT for the following:

    1. A CP notice generates to the taxpayer, due to the closing action taken, explaining the overpayment/underpayment and eventual refund or balance due.

      Note:

      A credit transfer made to a settled period without a correspondence received date does not generate a notice to the taxpayer.

    2. The action results in a refund the taxpayer expects (e.g., the taxpayer responded to 112A/112B letter with a return, the return was processed and the refund was issued).

      Note:

      In cases where an adjustment is made to the taxpayer's account, send a closing letter explaining the adjustment.

  5. Use pattern letters to correspond with taxpayers whenever possible. Managers must review CNOTEs and Quick Notes. Use simple language to communicate the message. Attach a copy of the letter to the case file.

    1. Review IDRS to ensure the transcript address is current.

    2. Check the CAF file to ensure the information is mailed to the taxpayer's representative, if applicable.

21.2.4.4.9.1  (12-01-2006)
Responding to Taxpayers

  1. Mail responses to taxpayer correspondence within 30 calendar days of the initial IRS received date (counting the day it is received). If unable to meet this time limitation, send an interim letter within 30 calendar days of the IRS received date, stating the reason for the delay and a completion date.

  2. Follow timeliness guidelines for acknowledging and working taxpayer correspondence. Refer to IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates. See specifically IRM 3.30.123.2.10, Taxpayer Correspondence. Managers must monitor compliance with these guidelines. Use either computer generated or manual reports.

  3. Answer all correspondence received from taxpayers, indicating:

    1. "This is in reply to your correspondence dated MM/DD/YY" .

    2. An explanation of the action taken, even if the action was exactly what the taxpayer requested.

  4. If during a taxpayer contact it appears there may be a hardship situation, complete Form 911, Application for Taxpayer Assistance Order, and refer the taxpayer to the Taxpayer Advocate Service (TAS). See IRM Part 13 or IRM 21.2.3.18 for more information.

    Note:

    Do not correspond to the taxpayer indicating we received the requested information.

21.2.4.4.9.2  (12-01-2006)
Requesting Information From Taxpayers

  1. All correspondence to taxpayers requesting information should indicate:

    1. A response is needed within 30 days.

      Exception:

      Overseas taxpayers have a 45 day response time

    2. Action the IRS will take if a timely response is not received.

    3. "When you reply, please send us your telephone number and the most convenient time for us to call so we may contact you if we need more information."

  2. If a phone number is available, and local management approves, call the taxpayer for the information. If the taxpayer requests confirmation of the conversation, send a follow-up letter.

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1. Fax procedures contained in IRM 11.3.1.10 must be reviewed prior to faxing confidential information to the taxpayer.

21.2.4.4.9.3  (12-01-2006)
Taxpayer Response

  1. If the taxpayer responds (timely or late) to a request for information and the case cannot be closed within 30 days, send an interim letter to the taxpayer. An interim letter must:

    1. Identify the reason a final response is delayed.

    2. Specify when the final response will be mailed.

    3. Include the name, telephone number, and organizational symbols for reference purposes as a contact point.

    4. Indicate"When you reply, please send us your telephone number and the most convenient time for us to call so we may contact you if we need more information."

      Note:

      See IRM 21.3.3.2(2), Action 61 Exclusion List, Other Exclusions, for work (e.g. incoming replies to solicitations for information needed to secure or complete the processing of a tax return) that does not meet the definition of correspondence under Action 61, and does not require an interim letter.

  2. Review all late replies and take the following action:

    If the late reply Then
    Relates only to a prior credit that was transferred to XSF or left on Master File AM works the case.
    Is received with a return and the taxpayer is liable for filing Input TC 599, Closing Code 18, if the module is in Status 02 or 03.
    Is received with a return and the taxpayer is not liable for filing Follow the procedures in IRM 21.2.4.4.22.
    Is in reference to issues other than those above Forward the case to the Adjustments function or work the case according to local procedures.

    Note:

    If there is an open control base on IDRS, contact the controlling area.

21.2.4.4.9.4  (12-01-2006)
No Reply From Taxpayer

  1. On all cases where the taxpayer did not reply to correspondence, stamp or write "No Reply" on suspense. Review IDRS CC SUMRY for additional control bases. Local management decides whether or not additional correspondence is necessary. Follow instructions for no replies under the appropriate freeze code closing action.

    Note:

    Research for a more current address is not required.

21.2.4.4.9.5  (12-01-2006)
Purging Correspondence

  1. Purge correspondence no less than 45 days or more than 60 days after the date the letter was sent to the taxpayer. Use a purge date that reflects local experience with late responses and misrouted mail.

    Exception:

    Overseas taxpayers have a 45 day response time and a 70 day purge time.

21.2.4.4.10  (12-01-2006)
Address Change/Correction

  1. Correct spelling, typographical or any errors in the taxpayer's entity and refer to IRM 3.13.5 (IMF Account Numbers) and IRM 3.13.2 (BMF Account Numbers) for general requirements for a change of address. Also refer to Command Codes INCHG and BNCHG.

21.2.4.4.11  (10-01-2007)
Undeliverable Correspondence

  1. Reissue or remail correspondence if you can obtain a more current address; however, care must be taken to ensure the address change is warranted and from a reliable source.

    Note:

    When obtaining information from a person, due to the high level of identity theft, it is extremely important to ensure the changing of a taxpayer’s address is warranted and necessary, as shown in supporting documentation/forms. For more information on identity theft, see IRM 21.6.2, Adjusting TIN Related Problems.

  2. Research undelivered letters for incomplete or incorrect names and/or erroneous data. Correct as necessary and reissue. Use IDRS CC ENMOD, IRPTR, or INOLE to look for a "good" address. If there is another address, reissue the letter.

  3. Otherwise, research for the most current address found:

    • On the AM transcript

    • In the case file documentation

    • Using telephone directories

    If there is a more current address, reissue the letter to the new address.

    Note:

    Issue a letter to a third party only if that party is identified in the CAF, which maintains data for Authorized Representatives (e.g., Form 2848, Power of Attorney and Declaration of Representative), and appointees (Form 8821, Tax Information Authorization).

  4. If you have a return, check other schedules or attached documents for another address at which the taxpayer may be contacted. If there is, discuss the case with the Team Manager or Lead Examiner to determine if correspondence should be reissued.

    Note:

    If another address is not found or the letter is undeliverable after two delivery attempts, follow instructions under the specific freeze.

21.2.4.4.12  (10-01-2007)
Transmitting Cases to Another Campus

  1. Do not transfer a case to another campus except TC 840 (transfer a case to the campus that initiated the manual refund only), or TC 922 with an Underreporter process code (these transaction codes must relate to resolving the transcript generated in order to transfer). For TC 922, see IRM 21.3.1.4.60 to determine if you should refer to the AUR function at the campus that originated the TC 922. With Universal IDRS, there should be fewer cases transferred. If research indicates the case is resolved, do not transfer.

  2. International returns are subject to the same test as other returns when determining whether to transfer to another campus; see IRM 3.10.72.0 for additional criteria.

    1. An International or Possession return has either a foreign address or income from a foreign source. In addition, there are a variety of forms filed that are treated as International returns. For a list of forms, see IRM 3.10.72.

    2. For AM12 resolution: if the tax return was sent to another campus for processing (ex. a letter from the taxpayer, a copy of Form 4251, etc.), attach the documentation to the AM transcript and transfer the case to the campus where processed.

  3. Use Form 3210, Doc. Transmittal, to transfer cases; see IRM 3.13.62.

21.2.4.4.13  (12-01-2000)
Treasury Bonds (B—Freeze)

  1. If a "B—" freeze is identified on an account, forward the information to the area that handles Treasury Bond Transcripts.

21.2.4.4.14  (12-01-2006)
Increased Liability Cases

  1. In some cases the original return was designated for audit but was not reviewed by Examination or TE/GE. Consequently, any additional liability reported on an amended return may not have been assessed. Be aware of actions needed to assess additional liability; refer to IRM 21.6 for IMF and IRM 21.7 for BMF.