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Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 3. Incoming and Outgoing Correspondence/Letters

21.3.3  Incoming and Outgoing Correspondence/Letters

21.3.3.1  (10-01-2005)
Incoming and Outgoing Correspondence/Letter Overview

  1. This section serves as a guide for performing tasks involved in processing incoming and outgoing taxpayer correspondence. For more detailed information, refer to IRM 1.10.1,The IRS Correspondence Manual, the central IRM for correspondence.

  2. CORRESPONDEX and (SC) letters are constantly being added, deleted, or revised. Therefore, consider information presented in this section as general guidelines only. You may only use National Headquarters approved CORRESPONDEX, (SC (Service Center)) letters and local use letters not mentioned in this section. See IRM 21.1.2.2.2, IRM 21 - Change Requests, and IRM 3.31.125.3, Types of Forms Used to Submit IRM/Program Changes.

21.3.3.1.1  (10-01-2007)
Action 61/Policy Statement P-6-12

  1. Action 61 is the result of a team formed to review Corporate Critical Success Factor 61 which dealt with existing requirements for the quality and timeliness of responses issued by the Service. Action 61 will now be referred to as Policy Statement P-6-12.

  2. A quality product or response is accurate, timely, and addresses all issues based on the information provided.

  3. Responses must:

    • Address all taxpayer issues

    • Request additional information, if needed, from the taxpayer

    • Notify the taxpayer if additional information is needed from outside the Service

    • Be written in language the taxpayer can understand

  4. See IRM 21.3.3.4.2 for Action 61/Policy Statement P-6-12 Guidelines and Procedures.

21.3.3.1.2  (10-01-2007)
Internal Revenue Code (IRC) and Correspondence Requirements

  1. The Internal Revenue Code (IRC) provides guidelines for the Service which covers various issues, including taxpayer contacts.

  2. Where specific IRC's and Action 61/Policy Statement P-6-12 guidelines conflict, IRC governs.

  3. Manually generated correspondence must include a contact name, telephone number, and unique employee identification number.

  4. Final response to taxpayer(s) must be initiated by the 30th day from the earliest IRS received date, unless the taxpayer has received an interim contact or interim contact has been initiated from us by the 30th day.

21.3.3.2  (10-01-2007)
What is Correspondence — Action 61/Policy Statement P-6-12 Exclusion List

  1. Correspondence is all written communications from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

    1. Written communications in response to IRS requests for information or data

    2. Written communications, including annotated notice responses, that provide additional information or dispute a notice

    3. A telephone call that results in a written referral or research ( Form 4442, Inquiry Referral)

  2. The following list includes the work that does not meet the definition of correspondence under Action 61/Policy Statement P-6-12:

    Action 61/Policy Statement P-6-12 Exclusion List
    Functions:
    Fraud Detection Center, formerly know as Criminal Investigation Branch (CIB)
    Facilities
    Training
    Types:
    Delinquent Return - Any original return or amended return received in response to a Return Delinquency Notice
    Substitute Return - Any original return or amended return received in response to a Substitute for Return notice
    Amended returns ( Form 1040X,Form 1120X, etc.)
    Form 941C
    Tentative Carrybacks ( Form 1045 & Form 1139)
    All extensions to file: Form 2688,Form 4868,Form 7004, and Form 8868
    EIN Toll Free Telephone Service
    CAF/POA
    Address Changes
    Internal requests between IRS functions may involve taxpayer correspondence. If there is no correspondence from the taxpayer, then the internal request is not considered correspondence (i.e., Form 3870, and Form 3465).
    Other Exclusions:
    Correspondence not directly dealing with a taxpayer's account
    All correspondence received in response to IRS solicitations for information necessary to secure or complete the processing of a tax return. This exclusion may include responses to solicitations as the result of internal transcripts or the solicitation was solely to secure or complete the processing of a tax return in order to resolve the transcript issue. (Suspense files in Document Perfection, Rejects, Unpostables, Notice Review, etc.). Correspondence attached to a return, addressing issues not directly related to the return is taxpayer correspondence.
    Child Support Enforcement (i.e., dealing with an agency, not a taxpayer)
    Responses to IRS third party solicitations (i.e., ACS requests for Employment Verification, etc.)
    Fed/State Program
    Schedules filed without return
    Telephone inquiries are not correspondence when responses are provided at the time of the inquiry. If the call is reduced to writing for future research or referral to another person/area, then it becomes correspondence. Calls received on Code-a-phones or for personnel temporarily away from their work station, are not correspondence if a response is provided by telephone to the taxpayer within a reasonable amount of time. Generally, this means within hours rather than days, but no longer than a couple of days.
    Incoming replies from a third party. (i.e., state certifications, FTD verification, etc.)
    Mag Tape Lists
    Frivolous Correspondence - See IRM 21.5.3.4.16.8, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments.
    Internal CP notices and transcripts. However, incoming replies to solicited information needed to resolve these are considered correspondence, unless the only reason for the solicitation was to secure or complete the processing of a tax return in order to resolve the transcript issue.
    Taxpayer Advocate Service cases - when the taxpayer does not expect an answer from the campus.
    Form 8379 - Injured Spouse Claim
    Form 8857 - Innocent Spouse Claim
    Requests on Form 4506 for copies of tax returns
    Responses to CP 08,CP 09,CP 27,CP 85A,CP 85B,CP 85C,CP 87A,CP 87B,CP 87C,and CP 87D

  3. The key to identifying taxpayer correspondence is to ask the following questions:

    1. Is taxpayer waiting for a response from us?

    2. Is taxpayer waiting for an action to be taken by us?

    3. Is taxpayer asking a question?

21.3.3.3  (10-01-2004)
Correspondence Research

  1. This section discusses research, definitions, and references to various laws and guidance background, and provides information about the Submission Processing Consolidation (Rampdowns).

21.3.3.3.1  (10-01-2004)
OMB Codes for Forms

  1. Public Law 104-13, Paperwork Reduction Act of 1995, requires that the Office of Management and Budget (OMB) approve forms or documents before they are issued.

  2. Items that carry OMB information can be classified into two categories:

    1. Information Collection Requests (ICRs) - A form, letter, notice, or other document used to request necessary information from at least 10 taxpayers. Each ICR is assigned a unique OMB number.

      Example:

      ICRs include major tax forms and instructions, public use forms, C, (SC), and (SC/SP) letters, draft and dictated letters, and CP notices.

    2. Document Perfection Requests (DPRs) - Also used to request information from at least 10 taxpayers. However, each DPR is not assigned a unique OMB number. Rather, it carries the OMB number of the document it perfects. An expiration date is not required on DPRs. DPRs include: public-use forms, C (SC), and (SC/SP ) letters, draft and dictated letters, CP notices, quick notes, and CNOTES.

  3. OMB number and expiration date must be typed or computer-generated on ICRs.

  4. DPRs must carry OMB number of parent form.

    1. Refer to OMB Index Listing on SERP for assigned OMB number and OMB code for each form.

    2. Use OMB code to input DPR C Letters. Refer to IRM 2.4.6, Command Codes LETER, LPAGE, LPAGD, LETUP, and LREVW, for input procedures for OMB code.

    3. A quick note can be a DPR. If it is used to request information to perfect a document, it must include the OMB number of the form to which the question refers.

    4. Do NOT use a CNOTE to request information related to a form not included in OMB Clearance Index.

    5. Input of OMB code will enter OMB number on CNOTE.

    6. Initiator is responsible for entering the OMB number on quick note.

  5. OMB requires that OMB number and expiration date appear in upper right corner of documents.

  6. ICRs must contain Paperwork Reduction Act Notice Language.

21.3.3.3.2  (10-01-2004)
Potentially Dangerous Taxpayers (PDT)

  1. The Potentially Dangerous Taxpayer (PDT) system identifies taxpayers who may pose a threat to the safety of IRS employees whose official duties require personal contact with taxpayers. The Office of Employee Protection (OEP) is responsible for administration and maintenance of the PDT database. See IRM 21.1.3.11, Potentially Dangerous Taxpayers, for current procedures for working PDT cases.

  2. You can ascertain that a taxpayer has been designated as potentially dangerous by an indicator on the following records and databases:

    1. Martinsburg Computing Center (MCC) Transcripts, except Privacy Act Transcripts

    2. Microfilm Replacement System (MRS) Transcripts

    3. Federal Tax Deposit (FTD) Alerts (Business Master File only)

    4. IDRS Transcripts, Tax Module (TXMOD), Entity Module (ENMOD), Taxpayer Delinquent Accounts (TDA) and Taxpayer Delinquency Investigations (TDI)

    5. Audit Information Management System (AIMS), including AIMS Weekly Updates, AIMS Charge-outs ( Form 5546 and AIMS Display AMDIS)

    6. Daily Transaction Register

21.3.3.3.3  (10-01-2006)
Correspondence Function Responsibility

  1. Initiate the appropriate letter when you receive a request for a statement or certification of a taxpayer's account, or for a copy of a record of assessment under the provision of IRM 21.2.3, Transcripts.

  2. Follow disclosure provisions in IRM 21.1.3.2, General Disclosure Guidelines.

  3. Process "discovered" remittances in accordance with IRM 3.8.46, Discovered Remittances.

    Exception:

    For remittances found with misdirected tax returns that do NOT belong to IRS, see IRM 3.10.72, Extracting, Sorting, and Numbering.

  4. Expedite the resolution of all disaster correspondence or claim.

21.3.3.3.4  (11-09-2006)
Quality and Timely Responses

  1. Key terms are defined below:

    1. A quality response is one that is timely, accurate, and professional. Based on information provided, a quality response resolves taxpayer's issues, requests additional information from him/her, or notifies him/her that we have requested information from outside the IRS.

    2. A quality response must be written in language the taxpayers can understand.

    3. Timely means that a final response was initiated within 30 days of IRS received date. However, when possible, you should try to initiate quality responses in less time.

  2. For letters addressed to outside sources, reference the date of the incoming letter or inquiry and explain fully the action taken, even if it was exactly what addressee requested.

  3. Your final or interim response must read . . . – This is in response to your inquiry of___. lf the inquiry is a letter that is not dated, use the postmark date. If that date is unknown, use a date three days prior to IRS received date. If the inquiry is in form of a fax, use the date the fax was transmitted to us. If inquiry is received from a Taxpayer Assistance Center use the IDRS received date.

    Exception:

    If the closing action you take will generate a notice with a clear explanation to the taxpayer (for example, CP 210,CP 220, or CP 225, etc.), a final closing letter to the taxpayer is unnecessary.

  4. See IRM 21.3.3.4.2.2, Interim Responses, for specific instructions regarding interim letters.

21.3.3.3.5  (04-07-2005)
Submission Processing Consolidation (Rampdown)

  1. Due to the continued increase in electronic filing of returns, the need for returns processing and related functions continues to decrease.

  2. Several Wage and Investment Submission Processing (SP) sites will cease operations, or "Rampdown" . Submission Processing support functions of that SP site will be transferred to an SP support site (Cincinnati). Some of the mail activities will be absorbed by Accounts Management (AM) at that SP site. Still other activities will be transferred to another SP site (returns processing).

  3. It is important to remember that the SP sites that rampdown will still house other functions such as Appeals, AWSS, MITS, Disclosure, TAS, Fraud Detection Center, TIGTA, Compliance, and Accounts Management. Only SP will rampdown.

  4. When instructions direct that something be referred or routed to any function normally located at a SP Site, it is the responsibility of the person making the referral to determine the correct SP location.

  5. Effective January 1, 2007, Philadelphia Submission Processing discontinued processing BMF international returns. The returns are processed by Ogden Submission Processing Center (OSPC). If PSPC receives any BMF international returns, they will be transhipped to OSPC. January 1, 2007, Austin Submission Processing Center (ASPC) began processing IMF international returns. Philadelphia no longer processes IMF international returns as of June 30, 2007.

21.3.3.3.5.1  (10-01-2006)
Brookhaven Submission Processing Consolidation (Rampdown)

  1. Effective January 2004, Brookhaven Submission Processing (BSPC) became the first to completely consolidate (rampdown) and serves as a model for future consolidations (rampdowns).

  2. Brookhaven discontinued processing returns or payments received after September 30, 2003. Returns and any associated payments received after that date are processed in Andover. Returns and payments received prior to that date were processed through the Brookhaven pipeline. IMF State Mapping was effective January 1, 2004. Any payments received with correspondence are transhipped to Cincinnati.

  3. BSPC has no remittance returns or remittance processing. Effective January 2004, notices and letters are accompanied by a cover sheet which provides the taxpayer with two return addresses. For each notice or letter with a BSPC return address, instructions are provided to the taxpayer so that:

    • Correspondence with payments is directed to Cincinnati Submission Processing (CSPC)

    • Correspondence without payments is directed to BSPC (CS or AM)

  4. BSPC RAIVS function work moved, per the new state mapping, to ANSPC if IMF; CSPC if BMF. Any RAIVS work received in BSPC is transhipped to ANSPC.

  5. The Site Coordinator function moved to AM at the Brookhaven site.

  6. CS and AM employees input their own transactions to change entity information such as change of addresses and name corrections.

  7. Some Files (Document Retention) support work was transferred to the CSPC in January of 2004. This work includes document requests, storage of Form 5147, microfilm research, and working CP 55 and CP 155. A later decision moved the remainder of the Files Function to CSPC, effective March 1, 2005. This includes Form 5147 association, Refiles, CP 98 and CP 198, Refund Litigation support, and CSED Listings.

  8. Accounting work was transferred to CSPC.

  9. These functions were transferred to CSPC October 1, 2003:

    • Centralized Offers In Compromise (COIC) Payment Processing

    • Manual Refunds

    • Erroneous Refunds, including the "Stop Refund" function

    • Payment Over Cancellation

    • Manual Assessments

    • Account Transfers (Retention Register)

    • AO/TO support (such as Form 809 processing) normally handled by BSPC

  10. The remaining Accounting functions transferred to CSPC December 1, 2003:

    • Dishonored Checks

    • Hard-core Payment Tracers

    • Freedom of Information Act (FOIA) — the SP work only

    • Unidentified Remittances

    • Excess Collections

    • Interim Revenue Accounting Control System (IRACS) — terminals were replaced at CSPC in July 2003 in advance of the rampdown

  11. The following functions were transferred to CSPC:

    • Integrated Submission and Remittance Processing (ISRP) — Transfer effective date was January 1, 2004

    • Unpostables — CSPC will work as their own and route to originator, Examination, CI, Statute at Brookhaven campus or work in the Unpostable area — Transfer effective date was December 1, 2003

    • Notice Review of AM notices, including the "Stop Notice" function — Transfer effective date was January 1, 2004

      Note:

      The BAMC Technical Unit accessed the Cincinnati server to review their Large Corp. notices on-line in Brookhaven. However, since that time, Large Corp. has been centralized in Cincinnati and Ogden.

21.3.3.3.5.2  (10-01-2006)
Memphis Submission Processing Consolidation (Rampdown)

  1. Effective October 1, 2005, Memphis Submission Processing (MSPC) completely consolidated (Rampdown).

  2. Memphis discontinued processing returns or payments received after June 30, 2005. Returns and any associated payments received after that date were processed in Fresno. Returns and payments received prior to the July 1, 2005 date were processed through the Memphis pipeline. IMF State Mapping was effective January 1, 2006. Returns and related payments are transshipped to Fresno. Any payments received with correspondence are transshipped to Cincinnati.

  3. MSPC has no remittance returns or remittance processing. Effective July 1, 2005, notices and letters are accompanied by a cover sheet which provides the taxpayer with two return addresses. For each notice or letter with a MSPC return address, instructions are provided to the taxpayer so that:

    • Correspondence with payments is directed to CSPC

    • Correspondence without payments is directed to MSPC (CS or AM)

  4. MSPC RAIVS function work moved per new state mapping to FSPC if IMF; CSPC if BMF. Any RAIVS work received in MSPC after July 1, 2005 is transshipped to FSPC.

  5. The Site Coordinator function moved to AM at the Memphis site.

  6. CS and AM employees input their own transactions to change entity information, such as change of addresses and name corrections.

  7. On August 1, 2005, Files (Document Retention) support work was transferred to the CSPC. This work included document requests, association and storage of Form 5147, Refiles, microfilm research, and working CP 55,CP 155,CP 98, and CP 198.

  8. Most Accounting work was transferred to CSPC July 1, 2005. Work associated with IRACS moved September 1, 2005.

  9. These functions transferred to CSPC July, 2005:

    • COIC Payment Processing

    • Manual Refunds

    • Erroneous Refunds, including the "Stop Refund" function

    • Payment Over Cancellation

    • Manual Assessments

    • Account Transfers

    • AO/TO support (such as Form 809 processing) normally handled by MSPC

    • Hard Core Payment Tracers

  10. These functions transferred to CSPC September 1, 2005:

    • Freedom of Information Act (FOIA) — the SP work only

    • Dishonored Checks

    • Unidentified Remittances

    • Excess Collections

    • IRACS - some terminals were shipped from MSPC in August 2005 in advance of the rampdown

  11. These following functions were transferred to CSPC:

    • ISRP support for MSC Compliance and Reports Unit - Effective date was August 23, 2005

    • Unpostables - CSPC works their own and routes to originator, Examination, CI, Statute at Memphis campus or work in the Unpostable area - Effective date was August 1, 2005

    • Notice Review of AM notices, including the "Stop Notice" function - Effective date was July 1, 2005

21.3.3.3.5.3  (01-25-2007)
Philadelphia Submission Processing Consolidation (Rampdown)

  1. Philadelphia Submission Process (PSPC) has begun consolidation of Submission Processing. The consolidation is scheduled to be completed in 2007.

  2. On July 3, 2006, all new assessments and/or documents required to be assessed on Non-Master File (NMF) were sent to Cincinnati Submission Processing Campus (CSPC). This included the following unique NMF account types:

    • IRC 6702, Frivolous Income Tax Return Penalty

    • Ruling Letters

    • 1040NR Fiduciary (EIN)

    • Reversal of Erroneous Abatements

    • Individual Master File (IMF) returns that cannot be processed on the Master File due to systemic limitations

    • Form 8288 - Prior to 12/13/2005

    • Form 8804 - Prior to 12/31/2004

  3. Philadelphia continued to maintain previously established accounts on the Automated NMF system. Account adjustments or updates were routed to PSPC until September 8, 2006.

  4. September 22, 2006, Philadelphia discontinued processing NMF. NMF operation was consolidated to CSPC.

  5. Effective January 1, 2007, Philadelphia Submission Processing discontinued processing BMF international tax returns. The returns are processed by Ogden Submission Processing Center (OSPC). If PSPC receives any BMF international returns, they will be transshipped to OSPC. January 1, 2007, Austin Submission Processing Center (ASPC) began processing IMF international returns. If Philadelphia received any IMF international returns, they continued to process them until June 30, 2007.

  6. International AM work continues to be worked at PAMC.

21.3.3.4  (01-24-2006)
Correspondence Procedures

  1. This section provides procedures for correspondence. Analyze each case and determine nature of request or problem. In reaching each determination, use all research capabilities available such as IDRS, DI, microfilm, etc. to resolve the problem. Open cases must NOT remain uncontrolled more than 14 days from receipt at IRS. Refer to IRM 21.5.1.4.2.2, IDRS Control Procedures, for more information on controlling cases.

    Note:

    Amended returns and internal transcripts are not subject to these correspondence procedures.

  2. After making initial determination, take one or more of the following actions:

    1. Use appropriate pre-composed C, National Headquarters pre-approved SC or SC/SP letters. If preparing a Quick Note, it must be reviewed by the lead or manager.

      Note:

      If Spanish-language correspondence is received, you must reply using the Spanish version of the appropriate C letter, if one is available.

    2. Compose special letters when no appropriate pre-composed letter is available. These may be forwarded to Typing function on Form 3696, Correspondence Action Sheet, or by use of Dictaphones.

    3. Research available IRS publications, IRC, and other sources to answer nontechnical or pre-filing questions.

    4. Refer inquiries unrelated to adjustment activities to proper area.

  3. Statute Periods - You must follow procedures in IRM 25.6, Statute Limitations. Hand carry potential statute documents or returns to Statute Unit. Documents or returns that have been "cleared" by Statute do NOT need to be cleared a second time.

  4. Reject and Unpostable - If a reject (RJ), nullified unpostable (NU), or unpostable (Unnn) transaction Status indicator appears in TXMOD display, prepare Form 5102, IDRS Expedite Routing Slip, for each correspondence item. Then route package to Rejects or Unpostables, if initiated by those areas. They will suspend there. If correspondence was NOT initiated by Reject or Unpostables, route to appropriate function for coordination and resolution with Rejects and Unpostables.

21.3.3.4.1  (10-01-2007)
Case Control and Inventory Management

  1. It is imperative that all correspondence be controlled correctly, in a timely manner. Good inventory management is a necessity. If cases are controlled correctly and timely, using the tools available, good inventory management is easier.

  2. The procedures that follow are the basic steps for controlling and working inventory for all correspondence received from taxpayers. Specific IRM references are included. Consult those IRM references for the most complete instructions.

    Reminder:

    These are instructions for working correspondence (Action 61/Policy Statement P-6-12 cases) and do not address non-Action 61/Policy Statement P-6-12 cases. See IRM 21.3.3.2 for Action 61/Policy Statement P-6-12 Exclusion List.

    1. Determine if the cases should be worked in your area. If not, refer case to appropriate area/office using procedures in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442.

    2. Use CC SUMRY to determine if there are open controls in other campuses. If so, refer case to appropriate campus and send Letter 86C.See IRM 21.3.3.4.2.1, Use of Letter 86C.

    3. Determine earliest IRS received date of correspondence. See IRM 21.5.1.4.2.4, Received Date Determination.

    4. Control all correspondence by the later of 14 days from the earliest IRS received date or 3 business days from receipt in controlling area. See IRM 21.5.1.4.2.2, IDRS Control Procedures, for more information on controlling cases.

    5. Control cases using the appropriate status code and category code (PAYT or TPRQ). Due to the 45-day aging criteria of correspondence, do not change the category code to a non-correspondence category code. Taxpayer-initiated correspondence received from another IRS office/area must still be controlled with the appropriate category code. It is not internal correspondence.

    6. Suppress all balance due notices (STAUPS/TC470) while the case is in your inventory. You must adjust or release the hold as appropriate when you close the case or route it to another area. See IRM 21.5.2.4.8.2, Suppressing Balance Due Notices.

    7. Follow all Action 61/Policy Statement P-6-12 guidelines on all taxpayer correspondence cases. See IRM 21.3.3.4.2, Action 61/Policy Statement P-6-12 Procedures.

    8. Issue an interim response when you are unable to issue a final response to the taxpayer within 30 days of receipt. See IRM 21.3.3.4.2.2, Interim Responses.

    9. Any action taken while the case is in your inventory must be documented and IDRS and/or DI updated appropriately. Follow procedures outlined in IRM 21.5.1.4.5, Suspense Folders, when suspending any case. Report any action taken (for example: requesting document from Files) and update the IDRS history and/or status as appropriate.

      Note:

      The received date as reflected on IDRS remains the same until the case is closed.

  3. When ready to close the case, ensure all applicable actions are taken.

    • Will the taxpayer receive a notice of adjustment or credit transfer sufficient to explain all issues raised by the TP?

    • If not, you must send an appropriate letter. See IRM 21.3.3.4.17, Outgoing Correspondence.

    • Will an adjustment or credit transfer bring the balance to zero or debit?

    • If not, release/reduce holds as appropriate.

    • Did TP request a refund?

    • Did you reverse all misapplied payments and offsets?

    • Did you check that no other open controls or additional correspondence has been received?

21.3.3.4.2  (10-01-2007)
Action 61/Policy Statement P-6-12 Procedures

  1. This subsection addresses guidelines and procedures to follow in working cases that meet Action 61/Policy Statement P-6-12 criteria.

  2. Many types of correspondence are excluded from Action 61/Policy Statement P-6-12 but may still require a response, depending on the program being worked. See IRM 21.3.3.2 for Action 61/Policy Statement P-6-12 Exclusion List.

    Note:

    Requests for Extensions to Pay are considered Action 61/Policy Statement P-6-12 and do require a response.

  3. The Action 61/Policy Statement P-6-12 Exclusion list is not all-inclusive. Other exclusions exist. Each piece of correspondence must be evaluated on a case-by-case basis to determine if it meets Action 61/Policy Statement P-6-12 criteria. See IRM 21.3.3.2, What is Correspondence.

  4. When a particular program has correspondence guidelines, the program procedures govern. For example, a particular program may require that you contact the taxpayer within 10 days instead of the 30 days required under Action 61/Policy Statement P-6-12 guidelines.

21.3.3.4.2.1  (04-11-2007)
Use of 86C Letter

  1. If you route a case to another office for resolution, you must inform the taxpayer. You may inform the taxpayer by telephone or send Letter 86C.See IRM 21.3.3.4.2.1(3) below.

  2. Annotate either that you notified the taxpayer their case is being transferred to another office, or that you sent Letter 86C and the date of the action.

  3. Letter 86C is required when any of the situations below exist, unless you inform the taxpayer by telephone that their case is being transferred. (Many addresses for various IRS locations can be found on SERP under the WHO/WHERE tab.)

    • The case must be worked by a non-IRS office, such as a state, local, or other federal agency.

    • The case must be worked by IRS International at the Philadelphia campus.

    • The case must be worked by a centralized program located at one campus location such as Excise, TE/GE, and Innocent Spouse, etc.

    • The case must be worked by a non-campus, such as a territory office or the taxpayer advocate office.

    • When sending from one campus to a function in another campus. ( Letter 86C is not necessary when sending from one function to another within the same campus, regardless if they are in different buildings.)

    Note:

    It is not necessary to send a Letter 86C when routing original or amended returns with no correspondence attached unless the return or case needs to be worked by IRS International at Philadelphia.

    Caution:

    If you identify a transshipment error, do not send another 86C letter.

  4. Provide the taxpayer with a contact name and/or telephone number when possible. If a specific name and number is not available, use the general toll-free number closing paragraph.

21.3.3.4.2.2  (10-01-2004)
Interim Responses

  1. If you cannot initiate a final response within 30 days from the earliest IRS received date, you must initiate an interim response.

  2. In the interim letter, you must tell the taxpayer when they can expect a final resolution. The promised resolution date may be any number of days and can vary depending upon the program being worked. The promised resolution date does not have to be in increments of 30 days.

  3. If the letter is manually generated, you must provide the name, telephone number, and unique identification number of a contact person. See IRM 21.3.3.4.17.1, Preparation of Outgoing Correspondence.

  4. Non-manually generated correspondence, such as 2645C letters generated by clerical staff, can provide only a toll-free telephone number.

  5. You must issue subsequent interim letters with the specific reason for the delay if you cannot provide a final response by the promised resolution date.

  6. Telephonic interim responses are acceptable. Keep written documentation of call with the case.

21.3.3.4.2.2.1  (01-10-2006)
Required Information

  1. An interim letter must:

    • Identify the reason a final response is delayed

    • Specify when the final response will be mailed

    • Include the name, telephone number, and unique identification number of a contact person

    Note:

    Where feasible, the contact name should be someone familiar with the issue(s).

  2. If there is a balance due, it must be addressed on all manually generated correspondence. See IRM 21.3.3.4.17.1(2), Preparation of Outgoing Correspondence, for the definition of manually generated correspondence. You must provide the correct amount due. Use the available balance due language in the current C letters. When you provide a balance due, you must provide the taxpayer with the following information:

    • The dollar amount of each penalty or interest proposed, including new accruals

    • The title (name) of the penalty or interest

    • The code section under which the penalty or interest is assessed

    • Information on how to request detailed information on the method used to compute the penalty or interest, such as a PINEX notice

    Exception:

    If account is in bankruptcy (status 72), provide only the balance due. Do not request payment or use the balance due paragraph in the C letters. Use an open paragraph to give only the balance due. Request for payment is a violation of the automatic stay.

  3. If you are unable to provide an accurate balance due, input CC STAUP to temporarily delay notices and use the pre-printed paragraph in the notices that informs the taxpayer of this delay. Also use the pre-printed paragraph in the letters that tells taxpayers they can still make payments to reduce their tax liability and interest.

  4. Research IDRS for an active installment agreement. If the account is in Installment Status (Status 60), inform the taxpayer the installment agreement is still in effect and to continue making scheduled payments. This is currently a pre-printed selection in the letters.

  5. If the taxpayer made a payment with his/her correspondence, it must be addressed in manually generated letters.

21.3.3.4.2.3  (10-01-2007)
Correspondence Date (Corr Date)

  1. Input a Corr Date, "CORRESP - DT" on CC REQ54, when working correspondence under Action 61/Policy Statement P-6-12. Input the Corr Date using the following priority:

    1. The date the taxpayer's correspondence was prepared or signed

    2. Envelope postmark date

    3. Three days prior to the IRS received date

    4. Current date

  2. If your case is an amended return or other type of work specifically excluded from Action 61/Policy Statement P-6-12, you do not have to use a Corr Date. See IRM 21.3.3.2(2), Action 61/Policy Statement P-6-12 Exclusion List.

  3. In both instances, the same adjustment notice generates to the taxpayer. The only difference is that an adjustment input with a Corr Date includes the sentence; "This is the result of your correspondence dated (fill in)."

  4. If working a case excluded from Action 61/Policy Statement P-6-12 and the explanation on the adjustment notice will not be sufficient, you must write or call the taxpayer with a more detailed explanation.

  5. When working multiple issues of the same type of form that are excluded from Action 61/Policy Statement P-6-12, a Corr Date may be used as a means of identification by the taxpayer.

    Note:

    If no correspondence is attached, use the signature date.

21.3.3.4.2.4  (10-01-2005)
Toll-Free Telephone Numbers

  1. When providing the taxpayer with a contact number, provide a toll-free number whenever one is available.

  2. If the program or function that will work the case has their own toll-free number, provide that number in the contact paragraph of the letter.

  3. Taxpayers must be provided the appropriate toll-free number:

    Toll-Free Telephone Numbers:
    For Programs or Functions that have their own toll-free number:

    • Estate and Gift (E&G) 1–866–699–4083

    • Excise 1–866–699–4096

    • TE/GE accounts 1–877–829–5500

    • Taxpayer Advocate Service 1–877–777–4778
    For Programs or Functions that do not have their own specific toll-free number:

    • W&I accounts 1–800–829–0922

    • IMF SB/SE accounts 1–800–829–8374

    • Taxpayers with EIN 1–800–829–0115

    Note:

    Additional Toll-Free number information can be found on SERP, under the Who/Where tab, "The Source" for Telephone Numbers @ http://gatekeeper.web.irs.gov/plList.asp.

21.3.3.4.3  (10-01-2004)
Disposition of Returns

  1. Dispose of returns using the following guidelines:

    1. Refile numbered returns.

    2. Route unnumbered returns for processing.

    3. Destroy unsigned copies of filed returns and other material as classified waste when it is no longer needed for use in developing a case. See IRM 21.5.1.4.10, Classified Waste.

  2. Destroy illegible returns once you have determined they are unidentifiable.

21.3.3.4.4  (10-01-2004)
Requesting Research Data, Returns, or Documents

  1. Use IDRS research capabilities to the fullest extent for correspondence, control, and research. Use CFOL command codes, whenever possible, to obtain information before ordering a MFTRA or requesting a document from Files.

  2. Do NOT request original return if sufficient information is available through CFOL. CFOL provides on-line access to current MF information for users in any campus through telecommunications network. Using CFOL command codes saves time and reduces unpostable conditions. CFOL command codes are available even when IDRS is down or NOT available.

21.3.3.4.5  (10-01-2004)
Examination Support Function Procedures

  1. Examination Support function is responsible for maintaining files for Examination Classification. This function may be located within Taxpayer Relations Operations or Examination Operations, depending on organization.

  2. Examination Support function is responsible for controlling "Prompt Audit" requests and for securing all returns needed for classification. Batch "Prompt Audit" requests and keep separate from other campus Examination Classification cases. If cases have statute implications, expedite processing to the Examination Classifier. Refer all completed cases to Examination function following current control and recharge procedures.

  3. Receipt and Control function routes certain Forms 2275 to Examination Support function. These items have been detached from returns and contain DLN of document. A notation on Form 2275 indicates "Document being processed. Hold in suspense for 30 days."

    1. Maintain these items in a suspense file for 30 days.

    2. After 30 days has elapsed, forward Form 2275 to Return Files function.

    3. If item is returned indicating return is "Not in Files" , wait 15 days and request return again.

    4. If the return is not received at the end of this time, follow appropriate Examination procedures to determine next action.

    5. Items associated by Return Files function are forwarded directly to requester.

  4. For incorrectly filed Forms 1120 ("loss" return), Examination Support function is responsible for obtaining Form 1040 for each shareholder identified on attached Schedules K–1.

    1. A Form 1120S fails to post with Unpostable Code 310 because of an established Form 1120 filing requirement (no Form 2553 filed or Form 2553 disallowed). Unpostable function initiates correspondence. If taxpayer fails to respond or sends an unsatisfactory response, nullify Unpostable Form 1120S and route to Examination Support function. Taxpayer still must file a Form 1120; consequently if he/she does not, a TDI type action is taken.

    2. Secure a Form 1040 for all taxpayers listed as stockholders on Form 1120S.

    3. Assemble all Forms 1040 for each Form 1120S. When you receive all these Forms 1040, route Form 1120S and related Forms 1040 to Examination Division on a Form 4227, lntra-SC Reject or Routing Slip. Annotate on this form, "Form 1120S incorrectly filed, shareholder returns that may have incorrectly claimed a loss from this Form 1120 are attached" .

  5. Examination Support function receives all claims for credit or refund, notices of elections, or reinstatements of elections filed under IRC section 2032A or those that contain a reference to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Valuation Election. Upon receipt, route all such claims, notices, etc. to the Centralized Estate & Gift Department located at the Cincinnati Compliance Services Center.