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Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 4. Field Assistance (Cont. 2)

21.3.4  Field Assistance (Cont. 2)

21.3.4.10 
Return Preparation Assistance

21.3.4.10.10 
Return Preparation Criteria for Disaster Impacted Taxpayers

21.3.4.10.10.1  (04-01-2007)
Screening

  1. IAR Screening Procedures

    1. If the taxpayer is directly impacted by a Presidentially-declared Disaster, the Scope of Service total income return preparation limitation does not apply.

    2. If the employee needs to confirm the taxpayer was, located in a Presidentially-declared disaster area, click on the following link, and select the appropriate years, IRS Disaster Assistance Declarations.

      Note:

      To confirm the county / parish click on the memo column. To confirm the zip code click on the stuffer column.

    3. If the taxpayer is impacted by a Presidentially-declared Disaster, and/or issues arise that are above the training level of the IAR, the taxpayer should be referred to a ITAS for completion of the screening process.

      Note:

      If referred, the IAR should brief the ITAS where they are in the process, to eliminate duplicate questions.

  2. ITAS Screening Procedures

    1. Determine if taxpayer is directly impacted by Hurricane Katrina. If so, ask taxpayer if they have Form 13614K, Volunteer Return Preparation Program Hurricane Katrina Intake / Interview Sheet from a VITA/TCE Site. If yes, review to include in the return preparation process. See Exhibit 21.3.4-27, Hurricane Taxpayer Authentication, if a picture ID is not available for the taxpayer and spouse.

    2. If the taxpayer does not have a Social Security Number (SSN) card, Adopted Taxpayer Identification Number (ATIN), or Individual Taxpayer Identification Number (ITIN) card for all TINs appearing on the return, obtain the SSNs from the taxpayer and check IDRS to confirm the SSN / ATIN / ITIN matches.

      Note:

      If the SSN / ATIN / ITIN does not match, advise the taxpayer to contact the Social Security Administration to obtain official documentation to verify the accuracy of the SSN.

    3. If prior year information is needed to prepare the return, the ITAS should print the required information from IDRS; prior year information is required to determine the "Look-Back Rule" for EITC and the Additional Child Tax Credit.

    4. If the taxpayer meets the required return preparation criteria he or she will be scheduled for the next available return preparation appointment.

21.3.4.10.10.2  (04-01-2007)
Interview

  1. Interview the taxpayer using the IRS Return Preparation Checklist and the Disaster IRS Return Preparation Checklist. See Exhibit 21.3.4-28.

  2. Use information from Form 13614K, if the taxpayer provided it, to avoid duplicate questions.

21.3.4.10.10.3  (04-01-2007)
Referral

  1. If unable to prepare the return, see IRM 21.3.4.10.3, VITA and TCE, for taxpayer referral procedures.

21.3.4.10.10.4  (10-01-2007)
Verification / Reconstruction of Income Documents

  1. Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc. may be completed prior to February 15 for disaster victims.

  2. The ITAS should determine if the taxpayer has any Form W-2s, Form 1099s, or Form 1098s and if there are any documents missing.

  3. If the taxpayer does not have these documents and the employer is still in business, has the taxpayer contacted the former employer? Has the former employer provided the income documents? If not, does the taxpayer have check stubs from that employer?

  4. Does the taxpayer have a copy of their prior year Federal Income Tax Return?

  5. If the taxpayer does not have any income documents, or copy of the prior year return, use IDRS (i.e., (CC)RTVUE, (CC)IRPTR, etc.) to see income information from prior year. Was the prior year return filed? How many dependents did the taxpayer claim in the prior year?

    Note:

    Disclosure must be confirmed with the taxpayer prior to providing IDRS information.

  6. Complete Form 4852 using the following exhibits as appropriate.

    • See Exhibit 21.3.4-29, Completing Form 4852 – Same Employer, if the employer is the same,

    • See Exhibit 21.3.4-30, Completing Form 4852 – Different Employer, if the employer is different,

    • See Exhibit 21.3.4-31, Completing Form 4852 - Social Security and Medicare Taxes Withheld, to calculate Social Security and Medicare Taxes Withheld,

    • See Exhibit 21.3.4-32, Completing Form 4852 - Federal Income Tax Withholding, to calculate Federal Income Tax Withholding,

  7. Refer to IRM 21.3.6.4.7.1(2), for Non-Receipt, Incorrect, or Loss of Form W-2, 1099 and 1098 – Information Returns for additional procedures in assisting taxpayers with the non-receipt of current year processing information using Correspondex letters (62C, Non-Receipt, Incorrect, or Loss of Form W-2 and 1099-R and Letter 63C, Form W-2 and/or Form 1099-R Requested from Employer/Payer).

21.3.4.10.10.5  (04-01-2007)
Verification / Reconstruction of Expense Documents

  1. The employee should obtain from the taxpayer any expenses for Schedule A, B (interest only), C-EZ, R, SE, Form 2441, Form 4684, Form 8863, Form 8839, Form 8812, Form 8880, and Social Security.

  2. Use IDRS to obtain required information for completion of the return, such as, Employer Identification Number (EIN) of child care provider, etc.

    Note:

    If the child care provider is the same for the current year as it was in the prior year, use IDRS to obtain the TIN, address, etc. However, if the provider is different, you cannot use IDRS to obtain this information since this would be an unauthorized disclosure. In this case you should use the existing procedures for due diligence, which are listed in the Instructions for Form 2441, Child and Dependent Care Expenses, and file the return on paper.

  3. Advise the taxpayer if there is additional information found or learned that changes any income, deduction, or credit on the original return, an amended return will be required to correct the amounts.

21.3.4.10.10.6  (04-01-2007)
Return Preparation

  1. Start return preparation in the e-file software with the Interview Form.

  2. Complete Main Information Screen annotating the taxpayer’s assigned disaster, (snow storm, hurricane, flood, etc).

  3. Utilize applicable worksheets and the Publication Method Guide (PMG).

  4. If the taxpayer is in a Taxpayer Assistance Center (TAC) physically located in a Presidential-designated disaster area, complete State returns and file electronically. State returns are only completed in TACs that offer state return preparation.

  5. For direct deposit of a refund or direct debit for a balance due and the taxpayer does not have proof of an existing bank account, bank account number on a letter, a bank statement, or a voided check, the taxpayer may provide that information orally. Deputy Commissioner for Services and Enforcement has approved a waiver which does not require physical documentation. See Exhibit 21.3.4-33, for additional information.

  6. If the federal return cannot be e-filed, and is within Field Assistance scope-of-service, the return should be generated on paper. Obtain taxpayer signature(s) and employee will mail the federal return directly to the appropriate Submission Processing Center for the taxpayer.

21.3.4.10.10.7  (04-01-2007)
Quality Review

  1. See IRM 21.3.4.10.6.1 for Quality Review guidelines.

21.3.4.10.10.8  (04-01-2007)
IRS Record Retention Requirements

  1. See IRM 21.3.4.10.1.5 for Retention Requirements.

  2. Form 13614K, Volunteer Return Preparation Program Hurricane Katrina Intake / Interview Sheet must be retained with the IRS Return Preparation Checklist, if used by the IAR or ITAS in the initial screening or interview.

  3. Retain copies of all support documents and workpapers, which includes IDRS prints.

  4. All supporting documents, federal and state, must be retained in the same manner as electronically filed returns.

21.3.4.10.10.9  (04-01-2007)
Taxpayer Record Retention Requirements

  1. Taxpayer Record Retention Requirements for Disaster Impacted taxpayers are the same as for non-impacted taxpayers. See IRM 21.3.4.10.1.5, Retention Requirements.

21.3.4.10.10.10  (04-01-2007)
Transmission and Acknowledgements

  1. The Transmission and Acknowledgement procedures for Disaster Impacted taxpayers are the same as for non-impacted taxpayers. See IRM 21.3.4.10.1.2, Transmission and Acknowledgements.

21.3.4.10.10.11  (04-01-2007)
Reject Processing

  1. Return Reject Processing procedures for Disaster Impacted taxpayers are the same as for non-impacted taxpayers. See IRM 21.3.4.10.1.4, Reject Processing.

21.3.4.10.11  (04-01-2007)
2006 Form 1040EZ-T, Request for Refund of Federal Telephone Excise Tax

  1. For tax year 2006 taxpayers may request a one-time refund of Federal Telephone Excise Tax. Taxpayers' have the option of claiming the actual amount of Excise Tax paid (with Form 8913), or a standard amount which is based on the number of exemptions that can be claimed on the taxpayers' 2006 return.

    • Most taxpayer’s will request this refund on their Individual Income Tax Returns and the normal return preparation procedures will be followed.

    • Form 1040EZ-T claiming the actual amount on Form 8913 will be filed electronically and the normal return preparation appointment procedures will be followed.

    • Taxpayer’s who are not required to file an Individual Income Tax Return can instead file a Form 1040EZ-T to request the Telephone Excise Tax Refund. The Form 1040EZ-T Intake Sheet and Job Aid will be used to screen taxpayers and determine the number of exemptions upon which the standard amount refund will be based. Employees are not required to use the Dependency Exemption TLC in preparing Form 1040EZ-T only.

    • Paper Form 1040EZ-T will be prepared and filed for taxpayers' claiming the standard amount. Preparation of paper Form 1040EZ-T, claiming the standard amount will being January 2, 2007.
      a. Taxpayers’s without SSNs or ITINs will be given their completed paper Form 1040EZ-T along with information on where to file and what identification documentation needs to be filed with Form 1040EZ-T.

      Note:

      Taxpayers filing a Form 1040EZ-T only for the purpose of claiming the TETR refund do not meet the requirement of "federal tax purposes" for purposes of obtaining an ITIN. Internal systems are in place to ensure these returns will be processed without a TIN.


      b. Taxpayer’s will also be given their completed paper Form 1040EZ-T along with information on where to file, if only one taxpayer is present for a Married Filing Joint 1040EZ-T return.

    • Form 1040EZ-T claiming the actual amount will be filed electronically and the normal return preparation appointment procedures will be followed.

21.3.4.11  (04-01-2007)
Earned Income Tax Credit Activities

  1. We will continue to promote and emphasize Earned Income Tax Credit as appropriate. The Additional Child Tax Credit will be combined with EITC activities.

  2. Published materials, such as publications, brochures, and posters that can be used to help promote awareness are to be ordered from the Area Distribution Center (ADC) as soon as they are available.

  3. It is extremely important that all EITC activities be properly captured in Q-MATIC with the appropriate closing code and recorded on Form 5311. Failure to do so will result in future loss of staffing.

21.3.4.12  (04-01-2007)
IMF Entity Overview

  1. The "entity section" on a taxpayer’s account is made up of several different pieces of information. Entity information includes:

    1. Name

    2. Address

    3. Taxpayer Identifying Number (TIN)

    4. Date of Birth (DOB)

    5. Spouse’s name

    6. Spouse’s social security number

    7. Filing Status Code (FSC)

    8. Year digits (YD)

    9. Mail Filing requirement (MFR)

    10. SSA, IRS valid and, IMF Name Controls

    11. Scrambled SSN indicator (XXXSSN)

    12. Date of Death (DOD)

  2. Integrated Data Retrieval System (IDRS) is the vehicle to access entity information via entity command codes. Command Codes (CC’s) that access entity information are as follows:

    1. INOLE

    2. ENMOD

    3. IMFOL(E)

    4. BMFOL(E)

    5. MFTRA "U"

    6. NAMES

    7. NAMEE

21.3.4.12.1  (10-01-2007)
Establishing and Maintaining the Entity Section

  1. It is very important that the entity section / entity information is established and maintained properly. The entity data identifies individual taxpayers on the IMF.

  2. An entity change will update the master file account via IDRS input or the processing of a tax document. See IRM 2.4.9.7.1 Changes Permissible by Service Center and Field Offices.

  3. Use Desktop Integration (DI) to update the entity via Update Contact Information box on DI. This function will prompt you with the appropriate command code (CC) to make the requested changes to the taxpayers’ account. CC ENMOD with CC ENREQ generates the input screen for entity changes, CC INCHG / IRCHG. IDAP may also be used to complete address changes.

    Note:

    Field Assistance Representation Job Aid – Update Contact Information for detailed instructions on how to use this feature in DI.

  4. For additional instructions see IRM 3.13.5.2.1 Establishing & Maintaining the Entity.

  5. Field Assistance will not change an EIN or change a basic name identity, e.g. from partnership to corporation, or from "Smith" to "Jones" . See IRM 2.4.9.7.2. Route these changes to Entity via Form 8822 at the Submission Processing Campus.

21.3.4.12.2  (10-01-2007)
Taxpayer Requests for Address Change

  1. General requirements for making address changes require clear and concise written notification such as a statement signed by the taxpayer informing the Service that he/she wishes the address of record to be changed. The notification should contain these items:

    1. The new address

    2. The taxpayer’s full name

    3. The taxpayer’s signature or the signature of an authorized representative

    4. The old address

    5. The social security number or employer identification number

  2. Ensure you are speaking to the taxpayer or their authorized representative and have followed the disclosure procedures before you input the change, via Desktop Integration (using the Update Contact Information button on the Account Summary page of DI). This feature prompts you for the appropriate IDRS command code to use. You may also use command code (CC) ENMOD / ENREQ / INCHG / BNCHG via DI or IDAP to complete your address change request. Follow the procedures located under Acceptable Address Changes from Oral Statements, IRM 3.13.5.11.

  3. If the taxpayer cannot provide complete information (ex. is unsure of the house number) do not change the address. Instead, have the taxpayer complete Form 8822, and mail it to the appropriate address as shown on page 2 of the form.

  4. If the taxpayer fails the disclosure check (ex. is unable to provide the last know address (LKA) of record) offer to mail Form 8822 to the address of record. Instruct the taxpayer to complete the form and return it to the address as shown on page 2 of the form. If the taxpayer cannot retrieve mail from the LKA, advise the taxpayer to return with photo identification.

  5. Address changes can and should be made when an obvious error in the taxpayer name and/or address is shown on the master files.

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    Note:

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21.3.4.12.3  (10-01-2007)
Scrambled SSN & Mixed Entity Procedures

  1. A scrambled SSN case is created when the returns are filed by two or more taxpayers using the same SSN and a correct SSN for each taxpayer cannot be determined.

  2. A mixed entity case is created when two or more taxpayers file a return with the same TIN. This may be due to an inadvertent taxpayer, tax preparer error or a processing error. Mixed entity cases are reclassified as scrambled SSN cases if the common number (CN) owner cannot be identified.

  3. ITASs must prepare Form e-4442 in Desktop Integration (DI) to refer taxpayer inquiries regarding mixed entity and Scrambled SSN cases, via the mandatory referral process. Do not try to unscramble or resolve the account. Do no input adjustments, an address change or release overpayments. If the correct number for one taxpayer is identified, record it on Form e-4442. Follow procedures shown in the IRM 21.3.5-1 Referral IRM Research List for Mixed Entities or Scrambled SSN Cases.

  4. Route cases with a Z freeze to the CI-Fraud Detection Center. Prepare Form e-4442 in DI. The CI-Fraud Detection Center fax numbers are located on SERP – Who/Where – F-4442 Referral Fax Numbers, Choose your site and select the CI-Fraud Detection Center.

    Note:

    Additional instructions IRM 21.6.2.4.2 Multiple Individuals Using the Same TIN, IRM 21.6.2.4.2 Telephone Inquires and IRM 21.6.2.4.3 Mixed Entity Procedures.

21.3.4.12.4  (04-01-2007)
Invalid Secondary SSN

  1. If the secondary identifying number shown on the prior year return does not match our records, see IRM 21.3.1.4.45 for the procedures the taxpayer should follow to correct the information.

21.3.4.12.5  (10-01-2007)
Identity Theft

  1. Identity theft is a crime that occurs when someone wrongfully obtains and uses another person’s personal data to commit fraud or deception. Taxpayers may visit the TAC for assistance with this situation. We assist customers with tax-related identity theft issues (including refund schemes, employment fraud, effect on future filing, etc.), and we refer customers with other identity theft issues (credit cards, etc.) to the appropriate agency.

    Note:

    TAC employees never make determinations about the validity of an identity theft claim, nor should they make statements to customers that imply acceptance or rejection of a claim.

  2. These three IRS publications address the topic of identity theft:

    • Publication 4523 , Beware of Phishing Schemes on one side; Spanish on the other)

    • Publication 4524, Security Awareness and Identity Theft (English only)

    • Publication 4535 , Identity Theft Prevention and Victim Assistance, (English on one side; Spanish on the other)

  3. Use the following "If/Then" table to help you respond appropriately to your customer's issue. Use the following when requesting documentation from the taxpayer.

    • Authentication of Identity – a copy of a valid U.S. federal or state government issued identification (for example, driver’s license, state identification card, social security card, passport, etc.)

    • Evidence of Identity Theft – a copy of a police report or Affidavit of Identity Theft filed with the Federal Trade Commission.

    If Then
    TP is about to suffer significant hardship as a result of a tax-related identity theft issue. Prepare and submit e-911, Request for Taxpayer Advocate Service.

    Note:

    If TP asks to contact TAS directly, have the TP call 1-877-777-4778 toll free, or go to www.IRS.gov/advocate

    TP received a tax-related CP—2000 notice, has never worked for the employer(s) listed, and believes he/she received a tax-related CP—2000 notice, has never worked for the employer(s) listed, and believes he/she is the victim of identity theft, -OR- TP received a notice that TP's refund is being held until an AUR issue for prior year(s) has been resolved; TP claims to have no knowledge of the issue, and no connection with the payer of the unreported income; and TP agrees that he or she may be the victim of identity theft.

    1. Assist TP with reporting the identity theft to the proper authorities by advising the TP to:
      • Notify the Federal Trade Commission (FTC) Identity Theft Hotline at 877-438-4338 or Identity Theft at www.Consumer.gov/IDtheft
      • File a report with TP's local police.
      • Notify the three major credit bureaus.
      • Refer to www.IRS.gov(key words "identity theft") for additional information

    2. Assist TP in responding to the notice, and provide a list of the following items to be included with the response:
      • Authentication of Identity
      • Evidence of Identity Theft
      • Response to the notice

    3. Send TP's response to the notice, along with all of TP's attachments, to the address on the notice. Use Form 3210

    4. Record a history on DI

    Note:

    Never refer the TP back to the employer / payer if there is any indication of identity theft.


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    TP brings copies of police reports, etc. to substantiate own identity theft; does not have an IRS tax-related issue, but wants us to be aware of the situation,

    1. Ask if TP has contacted the FTC, credit bureaus, etc. If not, provide TP with the necessary information (addresses, toll-free telephone numbers). Review Publication 4535, Identity Theft Prevention and Victim Assistance with the TP. (It includes Credit Bureau websites and FTC hotline information.)

    2. Advise TP that IRS only deals with issues that affect federal taxes. Explain that identity theft cases do not always have tax consequences. Say that you will note the ID theft on TP's account.

    3. Record a history item on DI, such as, T"P came into TAC to report ID theft. So far, no evidence of any related tax problems on TP's account. Provided / explained Publication 4535 to TP."

    TP indicates TP's personal identity information has been stolen, and there is no indication that it has been used inappropriately for tax purposes,.

    1. Assist the taxpayer by advising him/her to notify the Federal Trade Commission Identity Theft Hotline at 877-438-4338 or Identity Theft at www.Consumer.gov/IDtheft

    2. Complete forms as necessary for Evidence of Identity Theft

    3. Notify the three major credit bureaus.

    4. Refer to www.IRS.gov key word "identity theft" for additional information.

    TP received an e-mail from the IRS requesting personal identifying information (i.e. SSN, financial information, etc.). Advise TP:

    1. The IRS does not request sensitive information by e-mail, and the TP should not respond to the e-mail received.

    2. To forward a copy of the e-mail to phishing@IRS.gov(TP should go to www.IRS.gov key word "phishing" for instructions on forwarding e-mail.) Review Publication 4523, Beware of Phishing Schemes, with your customer.

    Note:

    For additional information, see IRM 21.1.3.25
    TP has knowledge of another person filing a federal tax return with a stolen SSN.

    1. 1) Tell TP you will take the information and submit a report to investigators.

    2. 2) Pull up Form 3949, Information Report Referral, from the Forms / Pubs Repository.

    3. 3) Complete the form, following the procedures in IRM 21.1.1.11(7) Informant Contact, IRM 25.2.1.3(9) Handling the Information , and IRM 25.2.1.6 Documenting the Information (with instructions on where to route form).

    4. 4) Mail completed form (along with Form 3210) to: Internal Revenue Service, Fresno , CA 93888.
    TP requests new or replacement SSN or TP requests new or replacement SSN or "posted earnings " determinations. Advise TP to contact Social Security Administration at 800-772-1213 or www.SSA.gov.
    TP needs more information on identity theft, but does not have a tax-related issue. Refer to Identity Theft, or - OR - ID Theft FAQ's, or refer TP to www.IRS.gov key word "identity theft" and Publication 4535 Identity Theft Prevention and Victim Assistance.
    TP has questions concerning the data security leak with the U.S. Department of Veterans Affairs (VA). Refer TP to 1-800-FED-INFO (1-800-333-4636) or www.firstgov.gov.
    TP receives EIN but did not request it. Use IRM 21.7.13.4.2.7, Taxpayer Claims He/She Did Not Request EIN, as a guideline for assisting TP.
    TP receives ITIN but did not request it.

    1. Place a history item in DI such as "Taxpayer claims ITIN not requested" .

    2. Place a history item in ENMOD that "ITIN not requested"

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21.3.4.13  (10-01-2005)
Employer Identification Number (EIN)

  1. Every business entity required to file a Federal tax return must have, or be assigned an EIN.

21.3.4.13.1  (04-01-2007)
Applying for an EIN

  1. If a taxpayer needs an EIN, provide Form SS-4 and advise the taxpayer of the following methods to obtain the EIN: (See IRM 21.7.13.2.3 Methods by which Taxpayers can apply for an EIN)

    • Toll Free EIN – Taxpayers call to request an EIN and an EIN is assigned within 15 minutes. EIN toll-free telephone number is 1–800–829–4933.

    • Fax-TIN – Taxpayers fax their application and an EIN is assigned and faxed back within 4 working days. Fax the Form SS-4 to Brookhaven, NY *631–447–8960, Cincinnati, OH *859–669–5760, or Philadelphia, PA *215–516–3990.

    • Mail SS-4s – Taxpayers mail their application and an EIN is assigned within 4 weeks from the received date of the application. Mail to campus of record.

    • Internet EIN - Taxpayers can use the Form SS-4 over the internet, if an EIN has not been assigned before and if certain criteria is met. An EIN will be assigned after the successful submission of the completed Form SS-4 on line.

21.3.4.13.2  (10-01-2005)
Assignment of EIN

  1. IRS assigns a nine digit EIN in the format NN-NNNNNNN. This EIN remains that entity's number even if the entity changes locations or opens additional locations.

  2. Form SS-4, Application for Employer Identification Number, is used to apply for an EIN.

21.3.4.13.3  (10-01-2007)
EIN Verification

  1. In October 2002, Department of Treasury issued USA Patriot Act Guidance, Section 352, which requires financial institutions to establish an anti-money laundering program. This program requires financial institutions to verify an account holder's identity before the establishment of an account. Often "business entity taxpayers" will come to the TAC requesting some support documentation to provide to financial institution to verify their EIN.

  2. The following procedures should be followed by TAC employees when assisting taxpayers with EIN verification as it relates to the Patriots Act guidelines.

  3. TAC employee will request sufficient information and follow disclosure procedures to determine that the requestor is the taxpayer on the account or is authorized to receive the information under IRC (Internal Revenue Code) 6103 (e). Follow the Desktop Integration (DI) Guidelines for disclosure. The Electronic-Accounts Resolution Guide (E-ARG) also has tools available for BMF disclosure.

  4. The IDRS and entity screen INOLE will show the EIN, and cross reference to the valid business owner's Social Security Number (SSN), if the entity is a sole proprietor or partnership. The SSN cross- reference may not always be available on the entity information. If the SSN cross reference is not present, TAC employees should ensure the information is provided to the appropriate person by verifying the identification.

  5. If the taxpayer is requesting the EIN verification for a corporation, TAC employees could request a copy of a valid state corporate filing to ensure the requester is listed as a corporate officer or is authorized to receive the information. For partnership entities, TAC employees should verify the Schedule K-1 ( Form 1065) was filed for the requester as part of their 1040 return. This requires securing the SSN of the requester to complete the verification.

  6. If the taxpayer or representative does not have the proper identification and disclosure cannot be verified, do not provide the EIN verification. Instead inform them that EIN verification can only be provided after their identity is verified. The taxpayer should be advised to return with the information needed for the research. The taxpayer can choose to write a letter on their company letterhead and request a verification letter by mail. If the taxpayer chooses this option, provide the address to the Submission Processing Campus.

  7. Once the taxpayer or his representative has passed disclosure the following command codes can be used for research of entity information: INOLES, ENMOD, NAMES, and NAMEE.

  8. If the taxpayer does not know the EIN but has passed the disclosure checks, research cc NAMEE and INOLE(S). If you are able to retrieve the information provide the verification print.

  9. TAC employees should print the entity information using command code INOLE(S) or ENMOD (page 1) and stamp the print with the official IRS received stamp (IRS,W & I, Field Assistance, city / state, date and "Received" ). ITASs can use this as a temporary verification. ITASs should order Letter 147Cto issue an official EIN verification letter, if requested by the taxpayer. The 147C letter is available on DI.

  10. If the taxpayer has no assigned EIN, the TAC employee should assist the taxpayer in completing the Form SS-4 and advise the taxpayer that the letter issuing the EIN can be used as verification.

21.3.4.14  (06-06-2007)
Account Inquiries

  1. An account inquiry is a contact relating to a taxpayer's tax account or entity information dealing with the processing of tax returns and corrections of subsequent errors.

    Caution:

    When assisting a taxpayer on an account inquiry, it is common to encounter issues that have tax law implications. Be sure to use the appropriate tax law procedures during the account contact. For more information, see the following:

    • IRM 21.3.4.3.6 Tax Law Assistance

    • IRM 21.3.4.3.7 Publication Method (and all appropriate subsections)

    • IRM 21.3.4.3.8.3.2 In-Scope Tax Law Referrals

    • IRM 21.3.4.3.8.5 Out of Scope Procedures

  2. Most accounts are resolved on-line or as a result of a written referral.

  3. On-line resolution is generally completed while the taxpayer is still in the TAC. However, if all account-related actions are completed by close of business (COB), it is considered closed on-line.

  4. Any inquiry that is not resolved and closed the same day is a written referral.

    1. All actions must be taken and taxpayer contact must be made to be considered closed.

    2. Refer to IRM 21.3, Taxpayer Contacts for guidelines on closing actions for referrals / correspondence and instructions to taxpayers.

  5. The authority to take oral statement was established to close account inquiries on-line.

  6. Oral statement allowances can be accepted by all IRS functions. (See IRM 21.1.3.209 for additional information on the expanded authority)

  7. See IRM 21.5, Account Resolution for specific adjustment procedures on resolving taxpayer issues.

21.3.4.14.1  (04-01-2007)
Audit Reconsideration

  1. FA employees will assist taxpayers when they disagree with an assessment made because of an audit on their tax return or when the taxpayer contests a Substitute for Return (SFR) determination by filing an original return.

  2. In order to request an audit reconsideration:

    1. The taxpayer must have filed a tax return or received an SFR assessment.

    2. The assessment remains unpaid or the Service has reversed tax credits that the taxpayer is disputing.

      Note:

      If the taxpayer has paid the tax, they should file a formal claim to contest the tax deficiency assessment ( Form 1040X).

    3. The taxpayer must know which adjustments they are disputing.

    4. Taxpayer must provide additional information not considered during the original examination.

  3. For general procedures regarding audit reconsideration requests see:

    1. IRM 4.13.1.4 Criteria for Reconsideration

    2. IRM 4.13.2.1 Research / Initial Case Screening

    3. IRM 4.13.2.1.1 Criteria Met

    4. IRM 4.13.2.1.2 Criteria Not Met

    5. IRM 4.13.2.2 Function Responsible & Routing Instructions

    6. IRM 4.13.2.3 Role of a Contact Employee

21.3.4.14.1.1  (04-01-2007)
Automated Substitute for Return (ASFR)

  1. The ASFR is a nonfiler or return delinquency program. The program computes tax, penalty and interest using the Information Reporting Program (IRP) data and other internally available information.

  2. An ASFR assessment can be identified on IDRS by a TC 290 assessment with DLN blocking series (9th - 11th digits) of 540-549 or 640-649.

  3. If the taxpayer is requesting reconsideration on an ASFR assessment, see IRM 4.13.7, Exhibit 4.13.7-1, ASFR - Reconsideration Returns - Centralized Processing Sites and forward the return to the appropriate site.

21.3.4.14.1.2  (07-28-2006)
Examinations

  1. A taxpayer may request an audit reconsideration as a result of an examination.

  2. Some reasons for an audit reconsideration request on an examination include:

    1. The taxpayer did not appear for the audit.

    2. The taxpayer moved and did not receive the correspondence from the IRS.

    3. The taxpayer has new documentation to present.

  3. A taxpayer might request an audit reconsideration if:

    1. Taxpayer disagrees with an assessment from an audit of their return and has additional information to be considered.

    2. Taxpayer disagrees with an assessment created under the authority of IRC 6020(b).

    3. Taxpayer has been denied tax credits such as EITC claimed, during prior examination.

  4. For general procedures regarding audit reconsideration requests, see IRM 4.13, Audit Reconsideration.

21.3.4.14.2  (10-01-2005)
Spousal Relief

  1. Spousal relief is granted in certain situations when a taxpayer can prove he/she is not liable for amounts due in joint filing situations. The Service will consider these requests for relief under Injured Spouse Relief and Innocent Spouse Relief provisions.

    Caution:

    Do not confuse Injured Spouse cases with Innocent Spouse cases since they have unique criteria that must be met to consider relief in either case.

21.3.4.14.2.1  (10-01-2005)
Injured Spouse Relief

  1. The spouse whose portion of a joint income tax overpayment was or will be offset to a tax or non-tax debt for which he or she is not liable is known as the "injured spouse."

  2. The injured spouse must have made payments such as Federal income tax withheld from wages or estimated tax payments, unless EITC or another refundable credit was claimed on the joint return.

  3. The injured spouse must file Form 8379, Injured Spouse Claim and Allocation, to request his or her portion of the joint refund.

  4. For an "injured" spouse claim, attach Form 8379 to the back of the original Form 1040, Form 1040A or Form 1040EZ at the time it is filed. Write "Injured Spouse" in the upper left corner of the Form 1040 series.

  5. If the original return has already been filed, mail Form 8379 to the Center that processed the original return.

21.3.4.14.2.2  (04-01-2007)
Innocent Spouse

  1. Both taxpayers filing a joint return are generally jointly and individually responsible for all tax due in that tax year.

  2. In some cases, a spouse will be relieved of the tax, interest and penalties on a joint return. Three types of relief are available:

    1. Innocent spouse relief

    2. Separation of liability

    3. Equitable relief

      Note:

      See Publication 971 for an explanation of these three types of relief.

  3. For Additional information refer to IRM 25.15.13.4

  4. Taxpayers may request the relief by filing Form 8857, Request for Innocent Spouse Relief.

  5. When a Form 8857 is received TAC employee must date stamp the receipt of the form and forward to the Innocent Spouse Unit located at the Cincinnati Campus. The mailing address is listed below and this address can be given to the taxpayer;

    Internal Revenue Service Stop 840F PO Box 12005 Covington, KY 41012

  6. The Innocent Spouse Unit has responsibility for input of transaction codes to stop potential collection actions. When the determination is made by the Innocent Spouse Unit a TC 971 AC 065 is input to IDRS to stop all potential collection action. A TC 972 AC 065 is input when a final determination is made.

21.3.4.14.3  (10-01-2007)
Balance Due Accounts

  1. To assist taxpayers in resolving their balance due account(s), Field Assistance employees must refer to IRM 5.19.1, Balance Due, for procedures. Assisting taxpayers in resolving their balance due account(s) is the responsibility of all TAC employees while speaking with a taxpayer. Compliance authority for FA employees is defined in IRM 5.19.1.5.4.1 Installment Agreement Overview. Compliance cases outside of this authority will be handled per IRM 5.19.1.5.4.1(7).
    Some common 5.19.1 references for FA employees assisting customers with balance due issues include:

    • IRM 5.19.1.5.4.4 Installment Agreement Requirements (IMF)

    • IRM 5.19.1.5.4.1 (12) Guaranteed Installment Agreements

    • IRM 5.19.1.5.4.4 (6) Streamlined Installment Agreements

    • IRM 5.19.1.5.4.16 and subs