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Part 21. Customer Account Services

Chapter 5. Account Resolution

Section 1. General Adjustments

21.5.1  General Adjustments

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21.5.1.1  (10-17-2006)
General Adjustments Overview

  1. This section provides the procedures for all functions making general adjustments through the Integrated Data Retrieval System (IDRS) to any one of the different Master File Tax Codes (MFTs). These procedures are available for use when an account adjustment must be made and there are no procedure(s) that cover the process in a specific Internal Revenue Manual (IRM).

21.5.1.2  (10-01-2003)
What Are General Adjustments?

  1. General adjustments are changes made at the request of the taxpayer on IMF, BMF, International tax accounts, and Internal Transcripts. Adjustments may be required because of:

    • Processing errors on returns

    • Missing schedules

    • Claims

    • Amended returns or

    • Internal Transcripts

21.5.1.3  (05-13-2007)
General Adjustments — Research

  1. To handle general adjustments, you may need to reference other Internal Revenue Manuals (IRMs) such as:

    List of Reference IRMs List of Reference IRMs
    IRM 3.8.46.1, Discovered Remittances IRM 21.5.2, Adjustment Guidelines
    IRM 5.19, Liability Collection IRM 21.5.3, General Claims Procedures
    IRM 20.1, Penalty Handbook IRM 21.5.4, General Math Error Procedures
    IRM 20.2, Interest IRM 21.5.5, Unpostables
    IRM 20.2.3, Command Code PINEX IRM 21.5.6, Freeze Codes
    IRM 21.1.3, Operational Guidelines Overview IRM 21.6, Individual Tax Returns
    IRM 21.1.3.20, Oral Statement Authority IRM 21.7, Business Tax Returns and Non Master File Accounts
    IRM 21.1.2, Reference Materials Overview IRM 25.6(Statute of Limitations)
    IRM 21.3.1, Taxpayer Contacts Resulting from Notice Issuance IRM 3.15.128, IMF / NMF International DP Adjustments, and IRM 3.15.129, International BMF/NMF DP Adjustments
    IRM 5.12.3.2.1(5), Liability is Satisfied  


21.5.1.4  (05-13-2007)
General Adjustments — Procedures

  1. The following sections in this IRM describe the procedures for processing general adjustments through correspondence or by telephone.

    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, Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.10, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

  2. If you discover an unprocessed remittance, refer to IRM 3.8.46.1, Discovered Remittance.

  3. You need to request a manual lien release when the lien will not systemically release, the action you are taking will not post in 30 days, or it has been more than 30 days since the account was fully paid. See IRM 5.12.3.2.1(5), Liability is Satisfied, regarding manual lien releases.

  4. Employees with access to the Automated Lien System (ALS) should input the lien release in these situations. Those employees without access to ALS need to submit Form 13794, Request for Release, Partial Release, or Withdrawal of Notice of Federal Tax Lien, to the lien release contact in the Centralized Lien Unit. The fax numbers can be located on the Who/Where page of SERP under Lien Payoff/Release Contact Numbers.

21.5.1.4.1  (10-01-2004)
Sorting Mail Responses

  1. The Mail Sort function must have the basic knowledge of servicing campus operations. They classify and sort adjustment work for Accounts Management functions.

  2. The Mail Sort function:

    1. Determines the appropriate area responsible for working the case,

    2. Classifies and sorts inquiries into the various adjustment function work sorts and non-adjustment work,

    3. Matches the receipts to the available skill levels,

    4. Segregates the work for trainees,

    5. Sorts cases not requiring a response or action, and reviews these items before disposition to ensure appropriate action is taken,

    6. Determines if the inquiry was mis-routed and reroutes to the appropriate functions including related materials,

    7. Batches adjustment cases into work batches,

    8. Maintains received date integrity, and

    9. May identify suspicious packages and letters during the mail sort process. For additional information, see IRM 21.1.3.10.8, Suspicious Packages and Letters.

21.5.1.4.2  (12-22-2006)
Clerical Review

  1. The Clerical Support function provides non-technical support to the Accounts Management (AM) function. The type of support is determined by local management and includes the following:

    1. Control batched cases on the Integrated Data Retrieval System (IDRS) control system.

      Note:

      Cases not closed within 14 calendar days counting the IRS received date must be controlled on IDRS, except amended returns.

    2. Input a "STAUP" or TC 470 with no closing code on balance due cases. For additional information on CC STAUP, refer to the Command Code Job Aid located under the IRM Supplement tab of SERP.

      Note:

      TC 470 should only be used when a claim is pending or "STAUP" cannot be input. Refer to Document 6209, IRS Processing Codes and Information, for CC STAUP input. If inputting multiple TINs, input the first TIN on the second line.

    3. Strip and dispose of classified waste from closed cases.

    4. Update and maintain suspense files. Research each SSN/EIN for each year referenced and route to appropriate functions if necessary. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, to determine appropriate referrals.

    5. Perform all research using the Integrated Data Retrieval System (IDRS).

  2. Form 3210, Document Transmittal, is a form used by all IRS functions. Monitor the forms to ensure an acknowledgement is received per IRM 3.13.62.7.2, Suspense Copies, Form 3210. If no reply is received within 20 workdays, follow-up with the receiving office by phone and notate the follow-up on the form. If the Form 3210 was submitted with a remittance, the follow-up and notation should be within 10 days on unacknowledged items. Additional information in preparing the form can be found in IRM 3.13.62.7.1, Form 3210 Document Transmittal.

21.5.1.4.2.1  (10-01-2003)
Screening and Inventory Control

  1. The following are available for case control:

    • The IDRS Multiple Case Control Report

    • Inventory and Recap code generation

    • Other case categories (not generated by Master File)

    • Case reject criteria


  2. Controlling inventory includes determining:

    • Case Classification

    • Received date

    • IDRS control

    • Status control

21.5.1.4.2.2  (04-13-2007)
Integrated Data Retrieval System (IDRS) — Control Procedures

  1. Control each case on IDRS if the case cannot be closed within 14 calendar days and it meets Action 61 criteria. Amended Returns are not subject to Action 61 criteria. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, for controlling and aging criteria on Form 4442, Inquiry Referral.

  2. To control cases on a specific account using CC ACTON or CC DOALL, you must determine the:

    • Status Code, for example, "A" , "C" , "M" . See Document 6209,IRS Processing Codes and Information, Sec. 13-9.

    • Control Category Codes, for example, "TPRQ" , "TPPI" . See Document 6209, Sec. 13-10

    • Unit or Customer Service Representative (CSR) or Tax Examiner (TE) employee number.


  3. Input CC STAUP or CC DOALL or TC 470 with no closing code to delay the next notice for 15 cycles on cases with a balance due. You must also determine the Internal Revenue Service (IRS) Received date.

    Note:

    TC 470 should only be used when a claim is pending or the CC STAUP cannot be input. Refer to Document 6209 or the Command Code Job Aid located under the IRM Supplement tab of SERP for information on CC STAUP input.


  4. Enter the correct IRS Received Date when controlling the case. For aging purposes, the IRS received date is day one, per IRM 3.30.123.2.10(12), Taxpayer Correspondence. If an IRS received date is not stamped on the document, refer to Received Date — Determination, in IRM 21.5.1.4.2.4.

21.5.1.4.2.3  (10-01-2007)
Clerical Function for the Image Control Team (ICT) Correspondence Imaging System (CIS)

  1. The Correspondence Imaging System (CIS) is now operational in AUSC, ATSC, BSC, KCSC, ANSC, FSC, and PSC.

  2. Sorting Documents for Scanning - Before scanning, sort documents (including Form 4251, Return Charge-Out, CP notices, etc.) by document type and category code. All cases must be date stamped when received in ICT. Stamp the first page of each case. In an effort to meet processing timeframes, all cases will be prepped and scanned within 5 calendar days of ICT receipt or 14 calendar days of the IRS received date.

    Note:

    For additional information, refer to the ICT Support Activities guide under the Learning tab on SERP.

  3. Preparing Documents for Scanning - Spot check all documents to ensure all documents in a batch are the same Document Type and Category Code.

    Note:

    Some case types require priority codes before scanning. The cases are as follows:

    Sorting Requirements/ Case Priority Category Code Description
    Operations Assistance Request - Form 12412

    Note:

    The criteria code is located in Box 4 of the Form 12412.




    Criteria Codes 1-4

    Case Priority 1    		 ATAO Form 12412, Operational Assistance Request (OAR) --

    • OARs should be faxed or mailed directly to the Operating Division Liaison

    • These forms must be given top priority

    • After scanning, all original OARs must be given to the work leader who will return the OAR with Form 3210 to the TAS Liaison Originator within 1 business day


    Operations Assistance Request - Form 12412

    Note:

    The criteria code is located in Box 4 of the Form 12412.




    Criteria Codes 5-7

    Case Priority 2



    		 ATAO Form 12412, Operational Assistance Request (OAR) --

    • OARs should be faxed or mailed directly to the Operating Division Liaison

    • These forms must be given top priority

    • After scanning, all original OARs must be given to the work leader who will return the OAR with Form 3210 to the TAS Liaison Originator within 3 business days

    Restricted Interest Carrybacks - Form 1040X

    $1 Million or more -

    Case Priority 1    		 RINT If multiple tax periods are received for the same taxpayer, separate Form 1040X by the appropriate tax period. It is important to leave all supporting information with each case.
    See the NOTE in IRM 21.5.1.4.2.3(4) below.
    Restricted Interest Carrybacks - Form 1040X -

    $50,000–$999,999

    Case Priority 2    		 RINT SEE ABOVE
    Restricted Interest Carrybacks - Form 1040X -

    $5,000–$49,999

    Case Priority 3    		 RINT SEE ABOVE
    Restricted Interest Carrybacks - Form 1040X -

    $0–$4999

    Case Priority 4    		 RINT SEE ABOVE
    Tentative Carrybacks - Form 1045 -

    $1 Million or more -

    Case Priority 1    		 TENTS Form 1045, Application for Tentative Refund -- All information remains with each case on the tax period of the Form 1045.
    See the NOTE in IRM 21.5.1.4.2.3(4) below.
    Tentative Carrybacks - Form 1045 -

    $50,000–$999,999

    Case Priority 2    		 TENTS See above.
    Tentative Carrybacks - Form 1045

    $5,000–$49,999

    Case Priority 3    		 TENTS See above.
    Tentative Carrybacks - Form 1045 -

    $0–4,999

    Case Priority 4    		 TENTS See above.
    Combat Zones -

    Any amount

    Case Priority 1    		 TPRQ/ XRET Cases that the taxpayer either references in the correspondence or claim that they are/were involved in a COMBAT ZONE.
    Disaster Claims -

    Any amount

    Case Priority 1    		 TPRQ/ XRET All "Disaster, Hurricane or Hurricane Katrina" claims.
    Injured Spouse Claims -

    Any amount

    Case Priority 3    		 DMFC All Forms 8379 and all CP36Ds

  4. Determining priority codes for carrybacks.

    Note:

    If there are multiple Forms 1040X or Forms1045 for the same taxpayer with the same loss year, combine all the totals from the forms to get the total dollar amount for determining the case priority. If the Form 1040X does not have the carryback box checked or Net Operating Loss (NOL) listed anywhere on form, look for an "NOL Worksheet" within the case. If you have multiple Forms 1040X or Forms 1045 for the same taxpayer, and the loss years are different, the amount of refund for each Form 1040X or Form 1045 will determine the priority codes.


  5. If the taxpayer has enclosed "original" documents (e.g., birth certificates, death certificates, drivers license, Social Security cards, or cancelled checks), do the following before returning the original to the taxpayer:

    • Photocopy prior to scanning

    • After copying, place the photocopy of the document with the case for scanning

    • Complete and attach Form 3699, Return of Document to Taxpayer, and place the "original" document in the designated receptacle for return to the taxpayer

    • Include the taxpayer’s name and address with the document. If no address is indicated, check the envelope for a return address. If no return address on the envelope, research for the address on IDRS

    • These documents will be mailed to the taxpayer at a later time as assigned by Management

    • If the document is a state return follow instructions in IRM 21.3.3.4.15, Misdirected Mail


  6. Scanning of Envelopes -- When preparing taxpayer correspondence (TPRQ cases) for scanning, envelopes can be discarded with the following exceptions:

    • CP08, CP09, CP27

    • Envelopes with any notations, including indications of a new address

    • Correspondence with any of the following "C" letters attached: 105C/106C, 853C/854C, or 1265C

    • Correspondence cases with a copy of any "C" letter related to a statute year

    • Whenever in doubt, scan the envelope.

    Reminder:

    Scan the envelope with all other case types (XRET, DUPF, DMFC, etc.).


  7. After sorting is completed, prepare documents for scanning by following these guidelines:

    1. Assemble a batch size that fills the batch file folder.

    2. Remove all staples, paper clips, rubber bands, or any mechanism holding the document together.

      Note:

      Fan the documents to ensure pages are separated and contain no hidden staples.

    3. Keep all documents (papers, envelopes, routing slips, etc.) comprising a CIS case together and intact.

    4. Feed the right edge of a portrait document or the bottom edge of a landscape document into the scanner first.

      Note:

      Portrait documents are usually correspondence, returns or notices; landscape documents are usually transcripts.

    5. Place smaller documents such as Form W-2, Wage and Tax Statement, at the leading edge center of the stack of pages.

    6. Center envelopes face up at the bottom right edge of the scanner.

    7. Tape all self-stick notes securely to a full sheet of paper prior to scanning to ensure they do not stick to the scanning equipment.

    8. Position all pages face up with separator sheets inserted at the beginning of each case.

    9. Repair torn document with tape. Ensure that no adhesive is exposed.

      Note:

      The recommended tape for repairs is Scotch 3M Magic Tape.

    10. Photocopy badly damaged documents and use the copy for scanning. Refile the numbered original after photocopying.

    11. Ensure case contains the following in the order shown: Separator sheet followed by Form 4251 if included, TP correspondence, CP notice or transcript, the return, attachments to the return, Form W-2, if present, and the envelope.

      Note:

      If a small envelope, Form W-2, or small pieces of paper are at the end of the batch, place a full sized blank sheet of paper at the end of the batch.

    12. Complete a batch cover sheet and place it on the top of the batch.

    13. Enter values (if present) from the batch cover sheet into the corresponding batch fields in the create batch window if the fields are blank and have not been automatically filled in. The batch fields are as follows:

      Batch Fields
      Document Type (preset when batch class selected – do not change)
      Category Code (preset when batch class selected – do not change)
      Program Code (preset when batch class selected – do not change)
      IRS Received Date (must enter a hyphen or slash between month, day & year)
      Case Priority
      MFT (preset at batch level by scanner operator)
      Tax Period (yyyymm format)
      Issue Type
      CSR Number
      Scan Type – Select production as the scan type for the Kodak i800
      Designated Campus. Enter the Campus designation code only if the batch of work is being transferred to another Campus, otherwise leave blank.
      Function (preset is ADJ)
       

    14. Place the completed batch cases in the file folders for transport to the scanning operation.

    15. Place problematic documents (i.e. legal-sized paper or oversized envelopes) at the end of the batch as this minimizes the need for switching back and forth between the landscape and portrait print orientation.

  8. When preparing the work for scanning, position the envelope to avoid scanner jams using the following guidelines:

    1. Orient the envelope to ensure the uncut/folded edge feeds into the scanner first.

      Note:

      Mend tears and wrinkles prior to scanning.

    2. If both the top and bottom have been opened, cut down both sides and use only the part of the envelope that contains useful information, such as the return address and postmark.

      Note:

      Trim oversized documents wider than 11 inches down to 11 inches prior to scanning.

    3. Photocopy bubble and manila (brown) envelopes prior to scanning.

    4. Remove the metal clasps to ensure they do not get caught in the scanner.

  9. ICT will retain scanned paper documents for a minimum of one week. After one week, campuses may classify unnumbered scanned documents and reassemble and return numbered documents to Files. If space is available and a need has been identified locally, campuses may retain scanned documents in the ICT longer than one week. See IRM 3.5.61.1.6, Correspondence Imaging System, for further information related to Files, ICT and CIS.

  10. Validation is a process to verify and/or enter information for cases in order for the cases to be controlled on IDRS and placed in workflow for distribution to the CSRs. ICT must validate the batches created in the Files function. If documents/batches need to be rescanned in Files for any reason, ICT management should coordinate with Files management

  11. Error inventory consists of cases that fail to assign after being released from the CIS imaging subsystem. Resolving the issue may include researching IDRS and correcting or inputting missing case data, establishing IDRS controls on cases that could not establish a control base or inputting a STAUP when one is required.

  12. The Quality Control (QC) queue is used for documents that were rejected during scanning, recognition or validation. QC will perform the analysis and correct any errors that are found. When the QC module is opened, the open batch window displays the list of batches that were rejected and require either the documents or pages within the batch to be corrected and/or rescanned. If a document or page needs to be rescanned, use the batch name (date and time scanned) to locate and retrieve the batch of documents either from a cart or from the temporary storage area if the batch has already been shelved. The process may include inserting/deleting pages, splitting documents and changing form types.

  13. During the course of closing cases, CSRs will discover cases that need to be printed and rerouted. These cases will print out on network printers located in the ICT area. Clerks in ICT will assemble the cases and route to the designated functions/areas. The first page of each case will print with either Form 1725, Routing Slip, or Form 12960, Case Referral. At the top of every page of each case, "CIS" will print in the left corner, the CIS case number in the middle, and the Employee Number (of the CSR who routed the case) in the right corner.

    Example:

    CIS Image Case #: CISWAAAA7H Emp #: 06351XXXXX.



    Clerks will pull the documents from the printer, associate (staple) all related pages of the case by Case #, and route to the function/area designated in the "To" section of Form 1725 or Form 12960. During peak season, the printers will be generating numerous reroutes. It is very important to monitor the printers during the day to ensure:

    • The paper trays are stocked, especially on the night shift

    • The print cartridges have not run out of ink, and

    • The printers are not turned off.

21.5.1.4.2.4  (10-01-2005)
Received Date — Determination

  1. Determine whether your case is a Taxpayer Initiated Inquiry (TPI) or non-TPI. When you are unable to determine whether your case is a TPI case, or other type of case treat the case as a TPI.

  2. When there is no IRS Received Date or handwritten received date on the document, determine the received date using the following priority list:

    1. Latest postmark or private delivery service date on the envelope.

    2. Date the document/correspondence was prepared or signed.

    3. Julian Date of the DLN minus 10 days.

    4. Today’s date minus 10 days.

    Note:

    For information concerning the Statute Reprocessable Return, see IRM 21.5.2.4.23.4, Statute Imminent Documents. See IRM 21.7.2.4.18.6.4.8.2, Math Verified Forms 941c (Detached), for information on determining 941c receive dates.


  3. On computer generated cases use the transcript or notice date minus 14 days to determine the IRS received date. If no computer generated date is present, use the IRS received date on the source document.

  4. When fax receipts are date and time stamped by the fax machine, no further action is required to evidence receipt. Otherwise, fax receipts received before 2:00 p.m. local time, are considered received on the current date. Documents received after 2:00 p.m., local time, are considered received the next day.

    Note:

    A CP 98/198 case resulting from a TPI should be controlled using the IRS received date of the source document.

21.5.1.4.2.5  (10-01-2005)
Received Date — Grace Periods

  1. Consider timely any return received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the return due date (RDD) including any approved extension of time to file.

  2. Returns received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the RDD carry the IRS Received Date (IRS Date Stamp) as the return posting date. When the latest postmark date or private delivery service mark is on or before the RDD, the RDD is the return posting date.

  3. To determine the effective date of payments received on balance due accounts, in Master File Status 19 or 21 or servicing campus Status 19, 20, 21, 56, or 58, the following applies:

    If the account has a And the payment is received Then the effective date of the payment is the
    balance due less than $100,000 within ≡ ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.
    balance due equal to or more than $100,000 within 10 business days plus ≡ calendar days of the 23C date of the notice 23C date of the notice. Refer to
    IRC §6651(a)(3).
    Status other than those listed in (3) above within 10 business days plus ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.


  4. When TC 610 or TC 670 payments post to a BMF account, which require FTD coupons, consider the payments timely if received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the RDD. Use the RDD as the posting date.

    Note:

    Refer to IRM 20.1, Penalty Handbook, for more information regarding amounts allowed to be paid with specific tax returns and for information regarding payments made through the FTD system (TC 650).


21.5.1.4.2.6  (10-01-2004)
Adjustments Case Management by CSR

  1. When the Customer Service Representatives (CSRs) receive assigned cases from Adjustment inventory they must work the cases first-in, first-out order.

21.5.1.4.2.7  (10-01-2004)
Assigned Case Listing (ACL) or Case Control Activity Report (CCA) 02/42

  1. Case Control Activity (CCA) 02/42 report contains the following information on IMF and BMF accounts:

    • Control Category

    • File Name

    • Case Control Number

    • TIN

    • MFT

    • Tax Period

    • Name Control

    • IRS Received Date

    • Plan Number

    • Follow Up Code

    • Employee Number

    • Error Code

  2. Review the list, identify and correct or refer systemic problems to the local IDRS Staff.

  3. Control cases using this list to individual employee numbers using CC "CCASG" , refer to IRM 2.4, IDRS Terminal Input.

21.5.1.4.2.8  (10-01-2003)
Inventory and Recap Codes

  1. Forward restricted cases to the appropriate assignee. When transferring cases to another technical function, each case should have its own transmittal document and be routed using expedited routing procedures.

    Reminder:

    When case is properly assigned, whether additional documents are required or not, enter the case control as "ASSIGNED" via CC "ACTON" . Request additional research via CC "ESTAB."

21.5.1.4.2.9  (05-10-2006)
Analyze the Case

  1. Determine the needs of taxpayer(s) and what they are requesting such as;

    • A copy of a return

    • A reply to one of our inquiries

    • Proof of a timely filed document through the use of an attachment to the inquiry

    • An adjustment to their original return supported by a loose schedule included in the inquiry; or

    • Other request


  2. When you cannot determine the taxpayer’s request from the information or documentation supplied, contact the taxpayer by telephone when a number is available or correspond with the taxpayer and request additional information and all necessary documentation you require, if known.

    1. Use Letter 64C or Letter 1382C, whichever is appropriate, if a penalty is the only issue addressed in the inquiry.

    2. In your correspondence, advise the taxpayer to include copies of all original correspondence along with the additional information requested.


  3. For preparation of work folders for completed cases, see IRM 21.5.2.4.24, Shipment of Source Documents.

21.5.1.4.2.10  (10-01-2003)
Late Replies

  1. Forward late replies from taxpayers or their representatives to the originating function, see IRM 21.3.3, Incoming and Outgoing Correspondence/Letters. Forward to Accounts Management (AM) when local management determines the originating function does not possess the necessary skills to resolve the case.

  2. Late replies may affect tax or penalty assessments.

  3. Complete the following when late replies are received:

    1. Control cases using the date the reply was received in the servicing campus.

    2. Use the applicable CFOL commands instead of requesting documents when necessary to recompute tax or verify credits, such as Command Code (CC) IMFOLT for interest computation. See IRM 20.2.3, Command Code PINEX.

    3. Input TC 930, with the reply as the source document, if the return is not posted. For additional information, see IRM 21.5.1.4.4.1, TC 930 Push Codes.

    4. Determine if the original return (when it posts) is necessary to resolve your case. Use CC RTVUE and CC TRDBV before requesting original return.

    5. Input a TC 29X or credit adjustment when needed.

    6. Review for any possible adjustments to penalties and make appropriate adjustment. See IRM 20.1, Penalty Handbook, when working late replies concerning Form 1065, U.S. Return of Partnership Income and Exempt Organization.

    7. Notify the taxpayer of any actions performed on the account.

    8. Correct the Return Processable Date (RPD) if the module has an "I -" freeze and CCC "U" . Update the RPD with the received date of the additional information.

      Note:

      When the refund was previously issued, changing the RPD releases the freeze, but does not change the interest computation. Refer to IRM 20.2.4.4.1, Updating RPD on Unprocessable Returns, for additional instructions.

21.5.1.4.3  (05-10-2006)
Incomplete Inquiry

  1. The three situations that require additional documentation and the case should be rejected are:

    1. Missing payment. Payment cannot be found and proof of payment not submitted.

    2. Restricted Interest Claims (RINTS) and Tentative Carryback Applications (TENTS). Information required by instructions, not submitted. See IRM 21.5.9, Carryback.

    3. Unnumbered, incomplete (unprocessable) IMF claims or amended returns, requesting tax decreases. See IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for handling tax increase or credit decrease cases.


    Exception:

    When corresponding for missing information and the RSED may expire during the taxpayer allowable response time, refer to IRM 25.6.6, Claims Abatements and Refunds, and IRM 21.5.3.4.3, Tax Decrease and Statute Consideration, for additional information.

21.5.1.4.3.1  (10-01-2003)
Missing Documents and Case Files

  1. The following sub-subsections detail the appropriate actions to take to secure a tax return to complete an adjustment, assuming "RTVUE" and/or "BRTVU" are unavailable or incomplete.

21.5.1.4.3.1.1  (12-22-2006)
Missing Returns

  1. If no TC 150 has posted:

    1. Research to see if the original return posted elsewhere, such as a different TIN or tax period.

    2. Contact the taxpayer by telephone or correspondence to determine where, when, and how the return was filed. Request a signed copy of the return, if necessary. If no reply from the taxpayer, take the following action:


    If Then
    The adjustment results in a credit to the taxpayer Treat as an original return but only allow substantiated credits to the extent of the tax liability.
    The adjustment results in a debit to the taxpayer or no tax liability Process the copy as an original return


  2. If TC 150 has posted:

    1. Use servicing campus local procedures for files special search.

    2. Determine if sufficient information is available to close the case. When sufficient information is not available, contact the taxpayer before closing the case.

    3. Attach a history of actions taken along with all other supporting information to the case file.

    4. If no reply is received from the taxpayer, make the adjustment when the net effect to the taxpayer is a debit; otherwise close your case "No Reply."


  3. If the adjustment relates to a NMF return and all research sources have been exhausted:

    1. Prepare Form 2275, Records Request, Charge and Recharge, indicating the original DLN in block 4.

    2. Attach a Form 2468, Over Assessment Label, or Form 2467, Assessment Label, to Form 8485, Assessment Adjustment Case Record.

    3. Attach the case file and all supporting information to Form 8485.


21.5.1.4.3.1.2  (12-22-2006)
Missing Case File

  1. If a case file cannot be found, review Integrated Data Retrieval Systems (IDRS) using CC "TXMOD" and CC "ENMOD" . If a satisfying transaction or letter is pending or posted on the module, close the control base.

  2. If no satisfying action is present, and the module is a dummy module, and there has been a control base for more than three weeks, the module should contain a TC 904. Follow the steps in the chart below.