21.2.1  Systems (Cont. 1)

21.2.1.20 
Local Campus Accounting Function Files

21.2.1.20.2  (10-01-2000)
Unidentified Remittance File (URF)

  1. The URF is a local Campus file which contains a record of each remittance (with a received date of one year or less) that cannot be positively identified and applied to a correct account or refunded to the taxpayer.

  2. Use CC URINQ to research for the following:

    • URF control number

    • Amount

    • Received date

    • Identifying data

  3. Prepare Form 8765, IDRS Control File Credit Application to request application of URF credits. Forward to the Unidentified Remittance Unit in the appropriate Campus. See IRM 21.5.7, Payment Tracers, for more information.

21.2.1.20.3  (10-01-2000)
Excess Collection File (XSF)

  1. Use CC XSINQ to research credits maintained in the XSF. The XSF is a local file which consists mainly of unidentified remittances and other unclaimed credits with a received date over one year old.

  2. Use Form 8765, IDRS Control File Credit Application to request application of XSF credits. Forward to the Excess Collection Unit in the Campus. See IRM 21.5.8, Credit Transfers, for more information.

    Note:

    Transferred "Statute" credits are also maintained in XSINQ.

21.2.1.21  (10-01-2011)
Tax Return Data Base (TRDB)

  1. TRDB contains all of the tax return data for electronically filed returns and subsequent corrections. Reject codes are displayed for research.

  2. Corrections from the following systems are also stored in TRDB:

    • Error Resolution System (ERS)

    • Generalized Mainline Framework (GMF)

    • Generalized Unpostable Framework (GUF)

  3. Status information (e.g., re-sequenced, corrected, posted, rejected return codes, etc.)

  4. Processing Codes (e.g., code and edit, condition, notice, audit, resequence, unpostable)

  5. History information

  6. Command Code (CC) Tax Return Print (TRPRT) provides the capability to obtain graphic prints of tax returns posted to the TRDB. This feature is available for returns filed for TY 1999 and all subsequent tax years.

  7. See IRM 2.3.73, IDRS Terminal Responses - Command Codes TRDBV, TRERS, TRPRT and R8453 for specific information on TRDB Research Command Codes.

    Note:

    TRDBV will become the single source for both electronically filed and paper individual and business tax return data. TRDB will gradually assume responsibility for RTF (Return Transaction File) and Command Code RTVUE over the course of several years. TRDB and Return Transaction File (RTF) consolidation will take place in the future. The consolidation and retirement of RTVUE will be announced.

21.2.1.22  (09-12-2014)
Modernized e-File (MeF/TRDB)

  1. Modernized e-File is a web based system that allows electronic filing of Corporate, Partnership, Exempt Organizations, Excise, Estate and Trusts, and Employment Tax Returns through the Internet.

  2. The following form types can be e-filed through the MeF platform:

    • Corporations - Form 1120, Form 1120-F, and Form 1120-S

    • Exempt Organizations - Form 1120–POL, Form 990, Form 990–EZ, Form 990–N (e-postcard) and Form 990-PF.

    • Partnerships - Form 1065, and Form 1065-B

    • Excise Tax - Form 2290, Form 720 and Form 8849 (Schedules 1, 2, 3, 5, 6 and 8 only)

    • Extensions - Form 2350, Form 4868, Form 7004, and Form 8868

    • Individuals - Form 1040, Form 1040-A, Form 1040-EZ, Form 1040-PR, Form 1040-SS, Form 9465, and Form 56

    • Employment Tax returns - Beginning in January 2014, MeF will also be accepting Employment Tax returns, including Form 940, Form 940-PR, Form 941, Form 941-PR, Form 941-SS, Form 944, and Form 945

    • Estate and Trust - Also beginning in January 2014, MeF will be accepting Form 1041.

  3. When a new tax annual return form type is added to the MeF platform, tax returns filed using the new form will be accepted for the current tax year only. As subsequent tax years are added to the MeF system, MeF will accept the current tax year and two prior tax years. For processing year 2014, MeF will accept prior tax years 2011 and 2012.

    Note:

    MeF does not accept prior year extensions.

21.2.1.23  (10-01-2010)
Automated Collection System (ACS)

  1. The Automated Collection System (ACS) accepts Integrated Data Retrieval System (IDRS) balance due and nonfiler cases requiring telephone contact for resolution. ACS also generates levies and correspondence. Tax Examiners use ACS' case management abilities to contact taxpayers, review their case histories, and issue notices, liens, or levies to resolve the cases. ACS contains taxpayer modules in a collection status. The data bases are located at each Campus.

    • Dallas Territory Office accesses Austin Campus

    • Seattle Territory Office accesses Ogden Campus

    • Buffalo Territory Office accesses Andover Campus

    • Nashville Customer Service Site accesses Memphis Campus

  2. ACS is also accessible through AMS.

21.2.1.24  (10-01-2007)
Automated Underreporter (AUR)

  1. The AUR Campus Compliance program determines possible discrepancies between income, credits and/or deductions reported on a tax return versus the information documents submitted by employers, financial institutions, etc. Potential cases are reviewed and a determination is made as to whether or not the taxpayer must be contacted to resolve the possible discrepancy.

21.2.1.25  (10-01-2011)
Taxpayer Advocate Management Information System (TAMIS)

  1. TAMIS is an Oracle web-based inventory control and report system used to control and track Taxpayer Advocate Service cases. The database is located in the Enterprise Computing Center in Detroit.

  2. TAMIS is accessible through AMS. For more information, see IRM 13.4.1, General TAMIS Information.

21.2.1.26  (10-01-2012)
Variable Call Routing (VCR)

  1. Variable Call Routing is a technology that redirects telephone calls when the Automated Call Distributor (ACD), Voice Response Unit (VRU) for routing a call is unavailable, due to insufficient circuits or equipment outages, or when the certain thresholds are met. The Intelligent Contact Management (ICM) provides instructions that redirect the call to an alternate destination. The alternate destination may be to a different call center device, or to a courtesy disconnect message.

  2. The VCR thresholds are based on the business rules for the factors ICM evaluates when making routing decisions: estimated wait time, agent status, average handle time, average queue time, abandon rates, site hours, circuitry, etc.

  3. Different lines of business use different combinations of these statistics to implement their business rules. If the call routing VCR threshold for the CSR has been reached, the call is instead re-directed to a courtesy disconnect message, also called a VCR message.

21.2.1.27  (10-01-2012)
Contact Recording

  1. Contact Recording (CR) is a software application/tool/system for recording incoming and outbound telephone contacts between IRS customer service personnel and taxpayers or their representatives. Phone conversations and related computer screen activity is recorded and then made available through a browser-based interface to managers and quality reviewers, enabling remote assessment of employee performance and customer service quality. Contact Recording also records telephone contacts between IRS employees and the Employee Resource Center (ERC). In the near future, it will record telephone contacts between IRS employees (and on-site contractors with IRS accounts) and the Enterprise Service Desk (ESD).

  2. Incoming and outbound/dialer calls are answered with an additional announcement that states, "Your call may be monitored or recorded for quality purposes."

    • Customers are informed at the front-end that their contacts are subject to recording for quality purposes.

    • Based on FCC regulations, CSRs will be able to stop the recording if the customer requests not to be recorded.

      Note:

      For more information, see IRM 21.1.1.10, Contact Recording.

  3. Quality Review uses CR to perform required random reviews (performance and product) of incoming telephone contacts.

  4. While the system provides screen capture of account actions, as well as voice recording of the call, the recordings are NOT accessible by Taxpayer Identification Number (TIN), Voice Processing Identification Number (VPIN), Personal Identification Number (PIN), or any other Taxpayer Identification Number.

  5. The system generally stores audio data by employee SEID for 45 days. However, calls selected for a longer retention period will hold the recording for a maximum of 18 months (558 days).

  6. See IRM 21.1.1, Accounts Management & Compliance Services Overview, for procedures and additional information.

    Note:

    If your site has not conducted Contact Recording briefings, then Contact Recording was not implemented at your site. However, remember the caller will still hear the announcement.

21.2.1.28  (10-01-2006)
Integrated Customer Communication Environment (ICCE) System, (formerly known as TRIS)

  1. ICCE is an automated call-routing interactive application system IRM 21.2.1.30, ICCE Interactive Applications (IAs) that permits taxpayers using a touch-tone telephone to select an application to resolve tax account issues, obtain tax information, or otherwise direct themselves to the appropriate source of assistance. ICCE reduces the number of calls that must be answered by a CSR.

21.2.1.29  (08-14-2009)
ICCE PIN Establishment

  1. To establish a PIN, the caller must use an ICCE telephone interactive application (IA) or a web application that requires the use of a PIN for verification. (e.g. Online Payment Agreement, payoff, posted payments)

  2. In order for a taxpayer to have or to establish a PIN, the caller must have a current balance due account on IDRS.

  3. To use the system, the caller must use the Caller ID Number on a current balance due notice.

    Note:

    Caller ID Number's on notices from a prior year do not work, unless it was the last notice issued.

  4. A caller may not establish or maintain a PIN if any of the following conditions exists:

    1. Unable to pass automated IA interview (excluding date of birth problem)

    2. No data for caller on IDRS (no balance due)

    3. Blocked account indicator

    4. Different secondary SSNs on open IDRS modules (ex-spouse/current)

    5. Criminal activity indicator

    6. Scrambled SSN indicator

    7. Deceased taxpayer indicator

    8. MFT 31 on primary or secondary SSN (Effective January 2001)

    9. PIN already established

      Note:

      If the taxpayer is in Direct Debit Installment Agreement (DDIA) status they might not receive a notice with a Caller ID to allow them to establish a PIN.

    Caution:

    CSRs are NEVER allowed to establish PINs for taxpayers.

    Note:

    If a caller had established a PIN previously and now falls into one of the above categories, the PIN is systemically deleted.

  5. The caller must successfully enter the following requested information during the automated interview for Identification and Authentication (I&A).

    • SSN of the primary taxpayer on the account

    • Taxpayer's date of birth

    • Caller ID number from taxpayer's most recent notice (six digits)

    • State that he/she is the taxpayer or spouse

    • Choose six digits that qualify for a PIN

    The interview process is a form of taxpayer authentication. On all calls concerning PIN procedures, CSRs must also complete caller authentication before continuing the call.

21.2.1.29.1  (10-01-2011)
ICCE PIN Default Procedures

  1. If the caller defaults from the automated authentication interview process because of date of birth alone, complete the authentication process. Then determine if a PIN has been established on the account. Access CC VPARS (see IRM 2.3.69, Command Code VPARS for more information on this command code). If a PIN indicator of "Y" is not on VPARS, the taxpayer may establish a PIN, provided that criteria in IRM 21.2.1.29, ICCE PIN Establishment has not been met.

    Note:

    IRM 21.2.1.33., ICCE CC VPARS for CC VPARS example.

  2. Offer the caller the opportunity to return to the application to establish a PIN after completing caller authentication (and he/she has correctly entered a valid Caller ID).

    1. Advise the caller that a confirmation Letter 2940C, VRU Request for Personal Identification Number (PIN) will be mailed to his/her address of record within 10 days to confirm actions for establishing a PIN.

    2. To re-enter a caller into the ICCE to establish a PIN:

    • Press "Inside Line" button on your tele-set

    • Press "#90683" for English or "#90686" for Spanish

    • Press "Enter"

    • Press "Transfer"

  3. If caller defaults from the process for a reason other than a date of birth problem, CSRs are to complete authentication and assist the caller with his/her inquiry without the use of the automated application. If the caller still wants to establish a PIN, return the caller to the application after his/her inquiry is satisfied.

    Note:

    CSRs are not allowed to establish PINs for taxpayers.

21.2.1.29.2  (10-01-2011)
ICCE PIN Maintenance - Taxpayer Restrict Access

  1. Use the following procedures to re-enter the caller back into the automated application to Restrict Access or Lift a Block on their account themselves. Options for the PIN Maintenance Menu for the Taxpayer to use:

    • Press "1" if did not establish PIN

    • Press "2" if forgot PIN

    • Press "3" to change PIN

    • Press "4" to disable access to account

    • Press "5" to lift block from access to account (See Paragraph 6 below)

  2. If a caller defaults from the PIN Maintenance proceed with:

    1. Authentication refer to IRM 21.1.3.2.3, Required Taxpayer Authentication

    2. Verify with CC VPARS the action the taxpayer was trying to take.

    3. Verify if a PIN is established. If taxpayer has forgotten his/her PIN and wants to establish a new one, they must first delete the old PIN and then use the caller ID on their current notice to establish a new one.

    4. Verify additional taxpayer authentication for taxpayers requiring to delete/erase or block PIN before continuing.

    5. Verify the account is not in ACS status. If the account is in ACS status the taxpayer is not able to restrict access to their account until they are no longer in ACS status.

      Note:

      If the taxpayer is in DDIA status they might not receive a notice with Caller ID to allow them to establish a PIN.

    Caution: Never ask for or let a caller tell you his/her PIN number.

  3. Advise callers of the two ways to disable /restrict access to their account. They must select the correct menu option:

    1. Press 1 to Erase current PIN and use the Caller Identification Number on their current notice.

    2. Press 2 to Block your account for use with the automated telephone system.

      Note:

      Option 1 & 2 above are routed to an ACD where you are prompted to enter 1 to Erase or 2 to Block a PIN. If anything other than the prompt is heard, there is a technical problem and you must try again. PIN maintenance prompt is unavailable while accounts are in ACS status.

  4. Advise the caller that a confirmation Letter 2940C, VRU Request for Personal Identification Number (PIN) will be mailed to his/her address of record within 10 days to confirm actions for blocking or erasing their PIN. Important: Advise the taxpayer to prevent unauthorized action, they must re-enter the Primary TIN of the account into the system and they should follow the prompts to restrict access to an account.

  5. To Restrict Access - follow these steps to re-enter the caller back into the PIN application:

    1. Press "Inside Line" button on your tele-set

    2. Press "#90682" for English or "90685" for Spanish.

    3. Press "Enter"

    4. Press "Transfer"

  6. To Lift the Block follow these steps to re-enter the caller back into the PIN application:

    1. Press "Inside Line" button on your tele-set,

    2. Press "#90683" for English or "90686" for Spanish.

    3. Press "Enter."

    4. Press "Transfer"

21.2.1.29.3  (02-04-2011)
Assisting Taxpayers with ICCE PIN Maintenance

  1. If the taxpayer requests assistance with PIN maintenance (blocking/erasing a PIN), assist the taxpayer while he/she is on the telephone. Complete authentication before proceeding. For taxpayers requesting to erase/block a PIN request see additional authentication information from IRM 21.1.3.2.4, Additional Taxpayer Authentication. Use CC VPARS to verify TIF data is available.

    Note:

    Some SSNs have conditions that cause immediate routing to an ACS CSR during normal business hours, or a message (during after hours) to call back between 8 a.m. and 8 p.m. The PIN maintenance prompt may or may not be heard. Should these instances occur the PIN maintenance application is unavailable because an account is in ACS status.

    Note:

    These procedures may also be used in resetting/changing the PIN used for the Online Payment Agreement (OPA).

  2. If TIF data is available, go to Step #4.

  3. If TIF data is unavailable, use CC MFREQ-C (while taxpayer is on hold) to establish the account (usually within seconds). Then continue to Step #4.

  4. From an outside line, Dial 1-866-559-3921 to access the new/lost/block (N/L/B) menu.

    Note:

    This is an internal number for IRS use only. Do not provide this number to the caller.

    1. Enter SSN at prompt

    2. Select 1 for SSN

    3. Select 6 if taxpayer has questions about PIN

    Caution:

    If an announcement prior to the N/L/B Menu indicates that the ICM or IDRS is "down" you must call the next business day or when advised. At discretion of local sites or if taxpayer insists, prepare an in-house business use referral to process erase/block PIN requests.

  5. The PIN menu is as follows:

    Note:

    Do not press 1 if you hear the following prompt: If you agree with the amount you owe, press 1.

    • If taxpayer did not establish PIN, press Option 1.

    • If taxpayer forgot his/her PIN, press Option 2.

    • To change PIN, press Option 3. (Only the taxpayer can activate (use) this option).

    • To disable access to account, press Option 4.

    • To lift "block" from your account, press Option 5 (Only the taxpayer can lift a block).

  6. Options 1, 2 or 4, in paragraph 5 above, are routed to an ACD where a prompt is heard; either to enter 1 to erase or block a PIN or to enter 2 to lift a block. If anything other than the 1 or 2 prompt is heard; it indicates a technical problem, and you must try again later. See (4) Caution above.

    Note:

    The system asks for re-entry of the taxpayer's SSN. Then, the VRU compares the entry against the prior entry to prevent unauthorized disclosure action.

  7. Once the re-entry takes place, follow the prompts to restrict access to an account:

    1. Press 1 to disable/erase the PIN until next notice

    2. Press 2 to disable/block the PIN until call back

    Note:

    When the above actions take place, there is an announcement that a confirmation letter will be mailed to the address of record within 10 days.

  8. End call after all actions are completed.

21.2.1.30  (10-01-2010)
ICCE Interactive Applications (IAs)

  1. Interactive applications help taxpayers resolve issues without talking to a CSR. Taxpayers must meet eligibility criteria to use the applications.

  2. The following IMF applications are available:

    1. VOICE BALANCE DUE (VBD) — permits callers to request a payment extension or establish a monthly payment plan to satisfy an outstanding balance due. It also gives the caller the ability to revise their payment due date and/or amount on an existing payment plan or revise an existing extension to an installment agreement.

    2. LOCATION (LOC) — provides caller with information on where to file certain federal tax forms and where to mail payments.

    3. REFUND INQUIRY (REF) — permits callers to find out about the status of their tax refund.

    4. TRANSCRIPT (TRA) — permits callers, after address verification, to request an account transcript (Letter 2863C), a return transcript, or a Form 4506 (to submit a request for a photocopy of a previously filed return).

    5. VOICE PROCESSING PERSONAL IDENTIFICATION NUMBER (VPPIN) or (PIN) — permits qualified callers to establish, block or change their PIN. IRM 21.2.1.29, "ICCE PIN Establishment" for procedures to establish a PIN).

    6. PAYOFF (PAY) — provides taxpayers, who have established a PIN, to receive a current or future payoff amount (within 120 days), the location for mailing payment, and an option to set up payment arrangements through the VBD application.

    7. VIEW CREDIT (CRD) — permits a taxpayer who has established a PIN to research a specific payment posted to his/her account or request a list of the last fifteen payments.

      Note:

      From the View Credit application the taxpayer may choose to enter the transcript, view debit or payoff applications.

    8. VIEW DEBIT (DEB) — permits a caller, who has established a PIN, to hear a summary or detailed account information of his/her account for a chosen tax year.

      Note:

      From the View Debit application the taxpayer may choose to enter transcript, view credit, payoff, or voice balance due applications.

    9. REFUND TRACE (RTR) — permits a caller to file a claim for replacement of a refund that was not received, lost, stolen or destroyed.

    10. Electronic Filing PIN Request - allows eligible taxpayers who do not have their prior year tax information to request a temporary PIN to verify their identity when e-filing their tax return, or extension or installment agreement forms.

    11. Where's My Amended Return (WMAR) - permits callers to determine the status of their amended tax return.

21.2.1.31  (10-01-2007)
ICCE Interactive Modules

  1. The following modules are used internally by the interactive applications:

    1. ENTER TIN — used to verify the TIN input by the taxpayer.

      Note:

      All TIN entries are checked for file source, TIN type validity, and data on Master File. Taxpayers who indicate that a joint return was filed are prompted to enter spouse’s TIN, if no data is available on the first TIN entered.

    2. ADDRESS — used by the transcript application to verify the street address input by the taxpayer against the address of record.

21.2.1.32  (10-01-2007)
ICCE Aspect Tele-Set Call Referral Data

  1. When a taxpayer exits from an Interactive Application (IA), either by choice or by failure to respond correctly to the menu option, the call is routed to a CSR assigned to the "Default Application" . This is referred to as a "default" from an IA.

  2. Call referral data is displayed on the tele-set and describes information about the call that has "defaulted" from the system. The call referral data displays the following information on the tele-set:

    • Caller’s TIN

    • Three digit alpha to identify the automated application

    • An asterisk (*) following the three digit application to indicate Spanish language call (e.g., CSS*, REF*, ETM*, etc.).

    Note:

    CSRs begin a call by greeting the caller in Spanish when this indicator (*) is present.

  3. Use of the call referral data, along with IDRS CC VPARS screen information allows you to complete inquiries without asking the taxpayer duplicate questions..

  4. When technical problems are encountered along with any Interactive Application, the tele-set displays the code for the application (VBD, REF, etc.) with an error message from below:

    • No IP Response (No response from Interactive Processor)

    • NO IDRS RESPONSE (No info received from IDRS)

    • IDRS COMM ERROR (IDRS Communication error)

    • INVALID VRU PACKET (IP received invalid VRU packet)

    • IDRS CMD Error (IDRS Command Code error)

    • VRU Link Down (Voice Response Unit link down)

    • Invalid RT Code (Invalid Route Code)

    • Invalid CRP Code (Call Referral Number not listed in CRP Table)

    • VRU Config Error (Configuration error occurred on VRU)

    • VRU Internal Error (Internal error occurred on the VRU)

  5. To complete calls with technical problems, follow normal incoming call procedures, including taxpayer/third party authentication.

  6. Upon completing the call, immediately notify the manager or system administrator of the error message.

21.2.1.33  (10-01-2007)
ICCE CC VPARS

  1. CC VPARS (Voice Processing Account Referral Screen) displays taxpayer account information and a description of the error the taxpayer encountered in an automated telephone system. The voice processing message section of the screen gives user friendly messages to indicate where the caller defaulted or exited the application.

  2. New calculated data fields on a screen show the total TDA and TDI yield score (Internal Use Only), a total of balance due modules and a total of assessed balances.

  3. To request CC VPARS:

    1. Enter the TIN from the call referral data on the tele-set display.

    2. Ask the caller to restate their TIN for verification and for Quality Review purposes.

  4. Continue the taxpayer contact from point of default using existing IRM procedures, including authentication probes, if necessary.

21.2.1.34  (10-01-2006)
ICCE /ENMOD History Items

  1. History items appear on ENMOD for actions taken by ICCE applications. The ICCE identifying IDRS number is 099 after the Campus two-digit number (e.g., 29099XXXXX). The last five digits are systemically generated.

  2. Transaction Code 016 (Miscellaneous Change Entity Code) identifies that a PIN was established. A second TC 016 indicates a PIN change. Other activities include issuing letters, IAGRE, and establishing installment agreements.

    Note:

    Only the taxpayer knows his/her PIN number (It does not appear on the tax module).

  3. A three-digit route code (agent message numbers) appears when a call is routed to a CSR. CC VPARS shows the literal meaning of the route code.

  4. By using the history information on ENMOD, VPARS and TXMOD, you can track the taxpayer’s actions during the interactive process.

21.2.1.35  (09-12-2014)
ICCE Management Action Reports (MAR) (Telephone and Internet)

  1. Management Action Reports (MAR) generate when transactions do not post to IDRS due to system/network problems (e.g., IDRS application down) or account conditions beyond design for the following applications:

    • Voice Balance Due

    • VPPIN

    • Refund Inquiry

    • Transcript

    • IRFOF (Internet)

    • On-Line Payment Agreement (Internet)

    • eAuthentication

  2. The Planning and Analysis (P&A) staff determines who, within the directorate, works the MAR. The MAR Directorate Assignments are as follows:

    Telephone Sites
    Account Type MAR Type Assignment
    SB/SE ACS (IMF) Update ACS Levy Sources, ACS IA Confirmation Letter, Revised ACS IA Letter Ogden
    SB/SE AM (IMF) Extension Confirmation letters, IA Confirmation Letters, IA Revised Letter, PIN Update Request, Transcript Request, Refund Trace CHCKL Request, Refund Trace LETER Request Memphis – SB/SE
    W&I ACS (IMF) Update ACS Levy Sources, ACS IA Confirmation Letter, Revised ACS IA Letter Fresno
    W&I AM (IMF) Extension Confirmation letters, IA Confirmation Letters, IA Revised Letter, PIN Update Request, Transcript Request, Refund Trace CHCKL Request, Refund Trace LETER Request Fresno
    Internet Sites  
    Account Type MAR Type - (IMF & BMF) Assignment
    SB/SE ACS (IMF& BMF) ACS Levy Sources, ACS Extension Confirmation Letter, ACS IA confirmation letters, ACS History Items, ACS Pending IA Transactions, ACS control bases , ACS IA Letter Revised Internet – SB/SE
    SB/SE AM (IMF& BMF) Entity Change due to Electronic IA, Tel. # Change due to Electronic IA, Levy Sources, Extension Confirmation Letter, IA confirmation letters, History Items, Pending IA Transactions, Control bases, IA Letter Revised, PIN update request Internet – SB/SE
    Entity Change due to undeliverable refund, Refund Trace CHKCL request Internet – Philadelphia
    W&I ACS (IMF) ACS Levy Sources, ACS Extension Confirmation Letter, ACS IA confirmation letters, ACS History Items, ACS Pending IA Transactions, ACS control bases , ACS IA Letter Revised Internet – W&I
    W&I AM (IMF) Entity Change due to Electronic IA, Tel. # Change due to Electronic IA, Levy Sources, Extension Confirmation Letter, IA confirmation letters, History Items, Pending IA Transactions, Control bases, IA Letter Revised, PIN update request Internet – W&I
    Entity Change due to undeliverable refund, Refund Trace CHKCL request Internet - Philadelphia
  3. A designated person is required to retrieve the reports on a daily basis and manually input the necessary action that the system failed to generate as indicated on the report, by the next business day. The designated person should confirm that the failed transactions were not completed systemically before processing manually.

  4. The MAR includes the TIN, MFT, Business Operating Division (BOD) and tax period, along with the needed correction for each application.

    Note:

    The BOD dictates which customer response telephone number is used on the taxpayer letters, except for eAuthentication transactions. See paragraph (5)(g) for specifics.

  5. MARS Corrective Action Needed:

    1. For full pay and installment agreements (W&I and SB/SE) processing, the paragraph number and fill-in data indicates a manual generation of Letter 3217C, Installment Agreement Accepted; Terms Explained or Letter 2273C, Installment Agreement Acceptance & Terms Explanation.

    2. For PIN (Memphis W&I and SB/SE) processing, the paragraph letter and fill-in data indicates the manual generation of Letter 2940C, VRU Request for Personal Identification Number (PIN).

    3. For Refund Trace CHKCL (Memphis W&I and SB/SE) processing, refer to IRM 21.4.2.4.16.1, ICCE Refund Trace Reports.

    4. For Transcripts (Memphis W&I and SB/SE) processing indicates a request for Form 4506, Request for Copy of Tax Return with manual generation of a Letter 2941C, VRU Request For Form 4506.

    5. For IRFOF (Philadelphia) refer to IRM 21.4.2.4.17 , Payment Claims and Enhanced Reconciliation (PACER) and Treasury Check Information System (TCIS).

    6. For On-Line Payment Agreement (Internet W&I and SB/SE) processing, refer to IRM 5.19.1.5.7.1, OPA Management Action Reports (MAR).

    7. For eAuthentication (Internet W&I) processing, the paragraph letter and fill-in data indicates the manual generation of CP 301, Online Services eAuthentication Notice. Use Signature Code "BJ" and telephone number 1-888-841-4648 for eAuthentication 2940C letters.

21.2.1.36  (10-01-2006)
ICCE Payment Report

  1. The Payment Report lists each account for which an installment agreement has been accepted. The daily reports details the agreement type, duration, amount owed, payment date and monthly payment amount, as well as a summary of average duration, average amount owed and total accounts receivable.

21.2.1.37  (10-01-2006)
ICCE Undeliverable Letters

  1. Forward ICCE undeliverable letters, identified by 099 in the Employee Identification Number on the letter (e.g., 29099xxxxx), to Customer Service for resolution.

  2. See IRM 21.3.3, Incoming and Outgoing Correspondence/Letters for instructions for undeliverable items.

21.2.1.38  (08-14-2009)
e-File Services (eFS) System

  1. The e-File Services (eFS) System offers several methods for filing taxes and transferring funds electronically.

  2. eFS uses several multi-functional Electronic Filing Systems (EFS) to receive and process individual and business returns.

  3. The following table shows the returns and systems.

    Return System
    Form 1040 (Series)
    • On-Line Filing Program

    • e–file Practitioner Program

    • FEDERAL/STATE e–file Program

    Form 944 Form 944 on-line filing & Form 944 e-file XML (& MeF starting in January, 2014)
    Form 941, Form 941-PR, Form 941-SS Form 941 e–file Program, e-file XML and Form 941 On-line.(& MeF starting in January, 2014)
    Form 940, Form 940-PR Form 940 e-file and Form 940 On-Line Filing Programs (& MeF starting in January, 2014)
    Form 943, Form 943-PR MeF
    Form 945 MeF
    Form 1065 Form 1065 Electronic Filing Program
    Form 1041 Form 1041 MeF
    Form 1041 (Fiduciary) FEDERAL/STATE FIDUCIARY Program
    IMF e-file Processing sites for Processing Year 2010 PSPC, AUSPC, KCSPC, FSPC, and ANSPC.
    BMF e-file Processing sites for Processing Year 2010 CSPC and OSPC

21.2.1.39  (02-14-2012)
E-file Form 1040 Series

  1. Taxpayers may file returns through authorized IRS e-file providers, Electronic Return Originators (EROs). EROs transmit returns via a third party. In some cases, the ERO may perform both the ERO function and the transmitter function.

  2. The return may be prepared by the taxpayer, a tax professional or an ERO. Tax professionals may also be EROs, depending upon the functions performed.

  3. Taxpayers who file electronically using tax preparation software or who file through a tax professional are required to use a Personal Identification Number (PIN) to sign their returns. Taxpayers create their PINs using any five digits except all zeroes. If authorized by the taxpayer, the taxpayer’s PIN may be generated by the software or entered by the Electronic Return Originator (ERO). If the return is filed using the Self-Select PIN method, the taxpayer must also provide their date of birth and either their prior year adjusted gross income (AGI), their prior year self-selected PIN or their Electronic Filing PIN (EFP) for authentication. The AGI amount may not be from an amended return, a corrected amount from a math error notice, or other changes made during IRS processing. The prior year self-selected PIN is the five digit PIN they used to sign their tax year 2012 return. The Electronic Filing PIN is an IRS generated five digit number. It is used as an alternate authenticator if the prior year AGI or prior year PIN information is unavailable. See IRM 3.42.5.9.1.1, "Self Select PIN Method" and IRM 3.42.5.9.2, Form 1040 Online Filing for information to answer general PIN questions.

  4. The Practitioner PIN method is another signature option for taxpayers who use an IRS e-file provider to prepare their tax returns. This option is used in transmitting Forms 1040, 1040A, and 1040EZ as totally paperless electronic returns. A Form 8879 , IRS e-file Signature Authorization, must be completed for all returns filed using the Practitioner PIN method. Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, Application for Extension of Time To File U.S. Income Tax Return must be completed for Forms 4868 filed using the Practitioner PIN method of filing when there is an Electronic Funds Withdrawal (EFW). Information on the requirements for using the Practitioner PIN method can be found in IRM 3.42.5.9.1.2, Practitioner PIN Method. In addition, the following web site can be used to answer general PIN questions: http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Practitioner-PIN-Method-for-Forms-1040-and-4868-Modernized-e-File.

  5. The Self-Select PIN is the only IRS e-file signature method available to taxpayers who file a federal individual income tax return using online tax preparation software. This new requirement is to promote a paperless and secure method of signing individual returns electronically. Taxpayers choosing to electronically prepare and file their return using an online software package will be required to use the Self-Select PIN method as their signature. The Taxpayer selects five numbers (except all zeros) to enter as their electronic PIN signature. On a joint return, both spouses are required to enter a PIN as their electronic signature.

  6. Who is eligible to electronically sign using the Self-Select PIN signature method?

    • Taxpayers filing form 1040, 1040A, 1040-EZ 1040-SS(PR).

    • Taxpayers who did not file for Tax Year 2011, but have filed previously.

    • Taxpayers who are age 16 or older on or before December 31, 2014, who have never filed a tax return.

    • Primary taxpayers under age 16 who have filed previously.

    • Secondary taxpayers under age 16 who have filed in the immediate prior year.

    • Military personnel residing overseas with APO/FPO addresses.

    • U.S. citizens and resident aliens residing in the U.S. Possession of Puerto Rico or with foreign country addresses.

    • Taxpayers who are filing on behalf of deceased taxpayers.

  7. Taxpayers required to file the following forms, which must be attached to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return:

    • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes ( or equivalent contemporaneous written acknowledgement )

    • Form 2848, Power of Attorney and Declaration of Representative (or POA that states that the agent is granted authority to sign the return.)

    • Form 3115, Application for Change in Accounting Method

    • Form 3468, attach a copy of the first page of NPS Form 10-168A, Historic Preservation Certification Application (Part 2 - Description of Rehabilitation), with an indication that it was received by the Department of the Interior or the State Historic Preservation Officer, together with proof that the building is a certified historic structure (or that such status has been requested)

    • Form 4136, - attach the Certificate for Biodiesel and, if applicable, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller

    • Form 5713, International Boycott Report

    • Form 8283, NonCash Charitable Contributions, Section A (if any statement or qualified appraisal is required) or Section B., Donated Property, and any related attachments (including any qualified appraisal or partnership Form 8283)

    • Form 8332, Release / Revocation of Release of Claim to Exemption for Child by Custodial Parent (or certain pages from a divorce decree or separation agreement, that went into effect after 1984 and before 2009) (see instructions)

    • Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities

    • Form 8864, Biodiesel and Renewable Diesel Fuels Credit - attach the certificate for Biodiesel and, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller

    • Form 8949, Sales and Other Dispositions of Capital Assets, (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949

  8. Who is not eligible to electronically sign using the Self-Select PIN method?

    • Taxpayers under age 16 who have never filed.

    • Secondary Taxpayers (spouse) under age 16 who did not file in the immediate prior year.

    • Taxpayers that file Form 1040-NR.

    Note:

    The Form 8453, U.S. Individual Tax Transmittal for an IRS e-file Return, will now be used to submit all required attachments to both online and practitioner prepared individual income tax returns.

  9. If the taxpayer does not have their tax return information available, they may call 1-800-829-1040 to request the information. If they can provide taxpayer authentication information to the Customer Service Representative, the tax information will be given over the telephone or a free transcript can be requested. Taxpayers who use Self-Select PIN are not required to complete or mail Form 8453-OL to the IRS.

    Note:

    If a taxpayer is calling in requesting his or her AGI, determine if it is needed for e-filing purposes. If it is, then you must provide the taxpayer with the original AGI from the prior years’ return. Command Code RTVUE and/or TRDBV or the Return Review Display (RRD) System must be used to provide this information, as original filing information is available regardless of subsequent adjustments or math errors. TXMOD and IMFOL will show the AGI as adjusted or corrected, NOT as filed. Special Circumstances: If the taxpayer filed their prior year's tax return after Cycle 50, using the ECC-MTB posting cycle, they should enter zero (0.00) for their prior year AGI. If the taxpayer's last year AGI was negative, they must enter the amount as a negative number (See IRM 3.42.5.9.1.1(3) , Self-Select PIN Method).

  10. To assist with taxpayer's inquiries, CSRs can find a complete listing of the e-file Error Reject Codes at the following web site: http://serp.enterprise.irs.gov/databases/local-sites-other.dr/eta.dr/err_rej_codes_toc.htm.

21.2.1.40  (04-22-2014)
E-file 1040 Series Online Filing

  1. The taxpayer may use tax preparation software bought off-the-shelf or available by electronic transmission to create an electronic income tax return using a personal computer Internet connection. A taxpayer may file up to five returns electronically with one software package.

  2. The online company will transmit online returns from the taxpayers to the appropriate Submission Processing Campus within 24 hours; retrieve the taxpayer acknowledgement and provide the acceptance or rejection notification to the taxpayer.

  3. Each taxpayer is required to use a Self-Select Personal Identification Number (SSP) to sign his/her e-file online return.

  4. Taxpayers choosing to electronically prepare and file their return using an online software package will be required to use the Self-Select PIN method as their signature. The taxpayer selects five numbers (except all zeros) to enter as their electronic signature. As part of the authentication process, the taxpayer has the option to choose between two “shared secrets” or an Electronic Filing PIN (EFP).

  5. The shared secrets are the original prior year Adjusted Gross Income (AGI) or prior year self-selected PIN. The prior year self-selected PIN is the five digit PIN the taxpayer used to electronically sign their previous tax year e-file return. The online filer has to enter their date of birth and one of the following:

    • Prior year AGI or

    • Prior year SSP or

    • Electronic Filing PIN (EFP)

    The taxpayer may enter all three, but only one has to match for successful authentication.

  6. Direct the taxpayer to obtain an Electronic Filing PIN (EFP) by following the instructions at http://www.irs.gov/Individuals/Electronic-Filing-PIN-Request (or going to the irs.gov home page and typing “E-file PIN” in the search box) or else they may call 1-866-704-7388 and follow the automated system instructions.

  7. The EFP application is accessible through vendor tax-preparation service/software. The taxpayer will be given a link (in the software) to an Electronic Filing landing page on IRS' web site at http://www.irs.gov/. On the landing page there will be a definition of an Electronic Filing PIN and how to get one. The automated telephone application will work in a similar way. This will be used for customers who are electronically filing through a tax preparer, rather than through self-tax preparation software. If the customer does not have their prior year AGI or SSP, the preparer will direct them to the telephone EFP application.

  8. The taxpayer cannot use the AGI from an amended return, a corrected amount from a math error notice or other changes made during IRS processing. If the taxpayer does not have his/her original AGI, he/she may call toll-free, 1-800-829-1040 to request the original figure. See IRM 3.42.5.9.1.1(3), Self-Select PIN Method for further instructions if AGI is a negative amount.

  9. If the taxpayer is calling to request the prior year AGI or SSP in order to e-file, authenticate the caller following procedures in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. If the taxpayer fails high risk disclosure, follow procedures in IRM 21.2.1.40.2, Taxpayer Fails High Risk Disclosure during AGI Request.

    Note:

    The AGI or SSP can be provided to either spouse over the telephone only for the year the joint return was filed if he/she meets the disclosure requirements above.

    Caution:

    If the IAT disclosure tool displays an identity theft indicator see paragraph (11) below.

  10. Use the “What’s my AGI” portion of the IAT Disclosure tool to provide the taxpayer with the prior year AGI or SSP.

    Note:

    If the tool does not provide the SSP, explain to the taxpayer that the SSP information is not currently available and the prior year AGI is all they need to validate and sign the return.

  11. The IAT Disclosure Tool will alert users to conditions on modules of accounts on which identity theft is a factor and/or suspected and documented. A list of identity theft action codes can be found in IRM 21.9.2.1(9), Identity Theft - General Information. See IRM 10.5.3, Identity Protection Program, for more detailed information on identity theft action codes. The IAT Disclosure Tool will display "IDT Indicator" in the alert box. See IRM 21.2.1.40.1, E-file 1040 Series Online Filing with Prior Year Identity Theft, for special handling procedures.

  12. If the taxpayer wants to obtain an Electronic Filing PIN (EFP), the application is accessible through vendor tax-preparation service/software or they may call 1-866-704-7388 and follow the automated system instructions or access the link on http://www.irs.gov/, Online Services.

    • The taxpayer will be given a link (in the software) to an Electronic Filing landing page on IRS' web site at http://www.irs.gov/. On the landing page there will be an explanation of what, why and how to get an Electronic Filing PIN.

    • The automated telephone application will work in a similar way. This will be used for customers who are electronically filing through a tax preparer, rather than through self-tax preparation software. If the customer does not have their prior year AGI or SSP, the preparer will direct them to the telephone application.

    • The Customer service representative should follow normal procedures when providing taxpayers information to file their return electronically. Follow general Disclosure guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication.

      Note:

      A Customer Service Representative will not be able to access or give out an EFP. The taxpayer must obtain it.

21.2.1.40.1  (02-26-2014)
E-file 1040 Series Online Filing with Prior Year Identity Theft

  1. The IAT Disclosure Tool will alert users to conditions on modules of accounts on which identity theft is a factor and/or suspected and documented. A list of identity theft action codes can be found in IRM 21.9.2.1(9), Identity Theft - General Information. See IRM 10.5.3, Identity Protection Program, for more detailed information on identity theft action codes. The IAT Disclosure Tool will display "IDT Indicator" in the alert box.

    Caution:

    Do not provide the Adjusted Gross Income (AGI) or Self-Select PIN (SSP).

  2. Taxpayers affected by identity theft will not be able to provide their prior year AGI to file their current year return. Taxpayers may be affected by identity theft whether they filed for the prior year or not.

  3. Advise the taxpayer "Your call will be transferred to an assistor who will provide you with a special number to file your return electronically" .

    Caution:

    Do not transfer the call if the identity theft issue is not related to prior year AGI or SSP.

  4. Transfer the call to extension 92161 (For callers needing assistance in Spanish, use extension 92162). See IRM 21.1.3.2.5Initial Authentication Transfer Procedures/Transfer PIN, for transfer procedures after the taxpayer has been authenticated. Exception: International assistors at the Philadelphia site are not allowed to transfer calls per IRM 21.8.1.1.4(2), Web Sites and Telephone Numbers. In this situation (and only this situation) Philadelphia International assistors would need to perform the procedures normally designated to the AM IPSU function. Follow the steps described in IRM 21.9.2.8.1, Responding to Calls related to E-filing, Prior Year AGI and Identity Theft – (AM IPSU only), paragraphs 2 & 3.

21.2.1.40.2  (01-30-2014)
Taxpayer Fails High Risk Disclosure during AGI Request

  1. Caution: Take the following actions if the caller is both requesting the AGI and fails High Risk Disclosure. For all other disclosure failures, high risk or standard, follow normal procedures.

    Note:

    These procedures would not apply to first time filers.

    1. Using the IAT Disclosure Tool, check the “Not Authorized” check box.

    2. The tool will automatically generate a TC 971 AC 504 with an SPCL1 code on IDRS using CC REQ77. This code is used for tracking accounts with at least one incident of high risk disclosure failure. The NSD notation will show “Failed High Risk Disclosure”. #CAUTION: When inputting a TC 971 AC 504 with a Miscellaneous Field Code SPCL1, the Secondary Date field should reflect the tax year for which the caller is attempting to file. In the case of the current year, input should be "12312014" . Be sure that you reference the proper year. For more information see IRM 10.5.3.2.18.2, TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM, and EAFAIL.) #Verify this information, then click the “Transmit” button on the Disclosure tool to complete the transaction. If the information is incorrect, press the “Cancel” button.

    3. End the phone call, using the following script (which will appear in the IAT Disclosure Tool): "It appears that you are not authorized to receive information on this account. I cannot discuss information with you. However, I can accept information from you."

    4. If appropriate, advise the caller: "Any response will be sent to the taxpayer at the taxpayer’s address of record."

  2. If the account has been marked as " Not Authorized " on a previous call, a notification will show in the "Alerts" section of the Disclosure Tool. the taxpayer fails high risk disclosure, take the following steps:

    1. Complete high risk disclosure. If the taxpayer successfully passes, address the taxpayer's issue as with a normal call. Proceed to the next step only if the caller fails high risk disclosure;

    2. Use IDRS to verify that the previous TC 971 AC 504 with SPCL1 has been input.

    3. When the "User Transmit Required " window appears, click the "Cancel" button.

    4. End the phone call, using the following script (which will appear in the IAT Disclosure Tool): "It appears that you are not authorized to receive information on this account. I cannot discuss information with you. However, I can accept information from you." .

    5. If appropriate, advise the caller: "Any response will be sent to the taxpayer at the taxpayer’s address of record."

21.2.1.41  (10-01-2010)
FEDERAL/STATE e-file

  1. Federal/State e-file is available in 40 states plus the District of Columbia. and New York City.

  2. State Acknowledgements are accepted by the Modernized e-File (MeF) System. Participating Federal/States can send their State Acknowledgements to MeF for trading partners to pick up when they pick up their Federal Acknowledgements.

  3. Acknowledgements of state returns are made within 48 hours. Acknowledgements for Federal returns usually are received within five minutes but can take up to two hours during peak days.

  4. States that participate in e-filing are:

    E-file States
    Alabama Louisiana Ohio (now includes Regional Income Tax Authority (RITA))
    Arizona Maine Oklahoma
    Arkansas Maryland Oregon
    Colorado Michigan Pennsylvania (now included Philadelphia)
    Connecticut Minnesota Philadelphia (PA)
    Delaware Mississippi Rhode Island
    District of Columbia Missouri South Carolina
    Georgia Montana Tennessee
    Hawaii Nebraska Utah
    Idaho New Hampshire Vermont
    Illinois New Jersey Virginia
    Indiana New Mexico West Virginia
    Iowa New York (now includes New York City) Wisconsin
    Kansas North Carolina  
    Kentucky North Dakota  
  5. Each state issues its own publications to detail the state's software specification requirements. Software developers contact the appropriate state to obtain electronic filing publications

  6. IRS e-file accepts federal/state e-file returns with foreign addresses, including the U.S. possession of Puerto Rico.

21.2.1.42  (09-12-2014)
VITA/TCE/AARP/FSA sites

  1. The VITA/TCE/AARP/FSA (Volunteer Income Tax Assistance and Tax Counseling for the Elderly, American Association of Retired Persons, Facilitated Self-Assistance) sites, accessible through a link on SERP's Who/Where tab, provides an on-line nationwide directory of volunteer assistance locations taxpayers may visit for free filing assistance. Use this link to refer taxpayers to volunteers. Caution: VITA/TCE/AARP/FSA sites are intended to assist taxpayers in return preparation, but limited in the services they provide. Do not direct callers to these sites for individual tax law questions or other services not provided. Refer to Publication 3676-B, IRS Certified Volunteers Providing Free Tax Preparation, which provides a list of the returns and forms IRS certified volunteers have been trained to work. Ensure that a volunteer site provides the necessary service before directing the caller there.

  2. Users may search by state/county or zip code to provide a list of sites where taxpayers may file free. Site information provided includes:

    • Site Name

    • Address

    • County

    • Open/Closing Dates

    • Program Type

    • Phone

    • Hours and languages spoken

    • E-file availability

    • Whether taxpayer needs to call for an appointment

  3. Two of the several possible program types included Facilitated Self-Assistance FSA Fusion and FSA Standalone.

    1. FSA Fusion sites allow taxpayers to prepare their own returns with the assistance of a certified VITA volunteer. Taxpayers who do not wish to select this option may instead choose to have a volunteer prepare their return at the same location.

    2. FSA Stand-Alone sites only provide the self-prep option; volunteers at these locations only assist the taxpayer and do not prepare returns.

21.2.1.42.1  (12-06-2013)
VITA/TCE/AARP/FSA e-file

  1. Free electronic filing and transmitting is offered at Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) Sites. See IRM 22.30.1, Stakeholder Partnership, Education and Communication for more information.

21.2.1.43  (11-16-2012)
Form e-file

  1. Reporting Agents who file Form 941 returns for themselves or others are eligible to participate in this program.

    Note:

    Software Developers who develop and test software for the programs, and IRS agents (via Simplified Tax and Wage Reporting System (STAWRS)) are also eligible participants of this program.

  2. Participants, except IRS Agents, must submit:

    • Reporting Agent's List to the Austin Submission Processing Campus (AUSPC) e-file Help Desk.

    • Form 8655, Reporting Agent Authorization, to the Austin Submission Processing Campus (AUSPC) e-file Help Desk.

    • IRS e-file Application through the electronic application process for the following:
      Electronic/Magnetic Media Filing of Business
      Employee Benefit Plan Returns
      Reporting Agents
      Software Developers Letter of Application (business taxpayer)

    • Complete three easy steps:
      1. Create an IRS e-Services account.
      2. Submit your e-file application online.
      3. Pass a suitability check.

  3. Reporting Agents have signature authority and electronically sign returns using an assigned Personal Identification Number (PIN).

  4. Only original, current tax year returns (no amended) and returns for all four quarters of the prior tax year are accepted by Form 941 e-file.

  5. The following is a list of attachments that can be transmitted through Form 941 e-file:

    • Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors.

    • Schedule D, Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations.

    • Schedule R, Allocation Schedule for Aggregate Form 941 Filers.

21.2.1.43.1  (10-01-2011)
Form 944, Employer's ANNUAL Federal Tax Return (e-file)

  1. The Form 944, Employer's ANNUAL Federal Tax Return, is filed once a year rather than quarterly (due January 31), significantly reducing the tax filing burden. The 944 e-file Program will allow small employers with little or no employment tax liability to file their returns electronically. Eligible employers are those with estimated annual tax liability of $1,000 or less. See IRM 3.42.4, IRS e-file for Business Tax Returns, for additional information.

21.2.1.44  (11-16-2012)
Form 1065 & 1065-B MeF Programs

  1. Section 1224 of the Taxpayer Relief Act of 1997 requires partnerships with more than 100 partners to file Form 1065, Schedule K-1, and related forms and schedules on magnetic media (electronically as prescribed by the IRS Commissioner). This legislative mandate applies to partnership returns for tax year ending December 31, 2000 and subsequent.

  2. Eligible participants for this program are:

    • Partnerships who develop their own software and file own returns

    • Originators/Preparers responsible for returns filed for firms, organizations or individuals and for Form 8453-P, US Partnership Declaration and Signature for Electronic Filing.

    • Transmitters who transmit returns directly to the IRS electronically.

    • Software Developers who develop and test software for the program.

  3. Participants must submit an IRS e-file Application via e-services for Electronic/Magnetic Media filing of Business and Employee Benefit Plan Returns. See Publication 3112, IRS e-file Application and Participation for additional information.

  4. For additional information on 1065 MeF Program see Publication 4163, Modernized e-file (MeF) Information for Authorized IRS e-file Providers for Business Returns and Publication 4164, Modernized e-file Guide for Software Developers and Transmitters.

21.2.1.45  (09-12-2014)
Form 1041 MeF Program

  1. Forms 1041, US Income Tax Return for Estates and Trusts, are electronically received at the ECC-MEM and are processed by the Ogden Submission Processing Campus (OSPC).

  2. Form 8453-F, U.S. Estate or Trust Income Tax Declaration and Signature for Electronic Filing is obsolete beginning Tax Year 2014. Form 8453- FE, U.S. Estate Or Trust Declaration for an IRS e-file return will be the signature document for all Form 1041 e-filed returns beginning Tax Year 2014. The Form 8453-FE should not be mailed to IRS. It will be included in the electronic return as a PDF.

  3. An IRS e-file Application must be submitted electronically via e-services in order to participate in IRS e-file program.

  4. Eligible participants for this program are:

    • Electronic Return Originators

    • Transmitters & Software Developers

    • Intermediate Service Providers

21.2.1.46  (10-01-2006)
FEDERAL/STATE Fiduciary Return Program

  1. This program is for filing Estate and Trust returns for both federal and state at the same time.

  2. Any state that has a requirement to file both federal and state fiduciary returns may participate. (Currently New York is the only state participating.)

21.2.1.46.1  (10-01-2008)
FEDERAL/STATE Partnership Program

  1. This program is for filing Partnership Returns for both federal and state at the same time.

  2. Any state that has a requirement to file both federal and state Partnership returns may participate. Currently, Georgia, Kansas, Maryland, Michigan, Utah and Wyoming are the only states participating.

21.2.1.47  (02-19-2013)
Electronic Federal Tax Payment System (EFTPS)

  1. The Electronic Federal Tax Payment System (EFTPS) allows individuals and businesses to make electronic deposits and payments for federal taxes such as Employment Taxes, Excise Taxes, Corporate Income Taxes and Form 1040 Estimated taxes.

    Note:

    Treasury Decision (TD) 9507 ended the use of paper Federal Tax Deposit (FTD) coupons beyond December 31, 2010.

  2. Generally, businesses and individuals must enroll in the EFTPS program to participate. Taxpayers can visit https://www.eftps.gov/eftps/ to enroll in EFTPS and to obtain information on how to complete a payment, or they can call EFTPS Customer Service for assistance:

    • Business 1- 800-555-4477

    • Individual 1-800-316-6541

    • Spanish 1–800-244-4829

    • TDD 1–800-733-4829

  3. Participants make EFTPS payments by:

    1. Accessing the EFTPS web site, https://www.eftps.gov/eftps/ or utilizing the Voice Response System by calling EFTPS at

      1. Business 1-800-555-3453

      2. Individual 1-800-315-4829

      3. Spanish 1-800-466-4829

      4. TDD 1-800-990-4829

      5. Local Direct Dial 1–303–967–5916

    2. Authorizing their bank to make a payment directly to the U.S. Treasury

    3. Contacting a third party provider such as a payroll service.

  4. As of January 1, 2011 businesses must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate tax). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used as of December 31, 2010. If the participant does not want to use EFTPS, they can arrange for their tax professional, financial institution, payroll service, or other trusted third party to make deposits on their behalf.

    Note:

    See Publication 15, Circular E, Employer's Tax Guide, "Section 11" for more information on "Electronic Deposit."

  5. Deposits made through EFTPS must be initiated by 8:00 p.m. ET one calendar day prior to the payment due date.

    Note:

    If the due date falls on a Saturday or Sunday and a deposit is made by 8:00 p.m. ET Friday, the deposit settlement date will not be until the next business day.

    Note:

    If the due date falls on a banking holiday and a deposit is made by 8:00 p.m. ET the calendar day before, the deposit settlement date will not be until the next business day.

  6. A Same Day Payment option is available through the Federal Tax Collection Service (FTCS) to businesses who cannot initiate a timely EFTPS payment. This option is not intended for ongoing use.

  7. Taxpayers should contact their financial institution for information on availability, deadlines, and fees. Refer to IRM 3.17.277.1.4.3(1) for availability of FTCS for individual taxpayers.

  8. EFTPS is a free service of the U.S. Department of Treasury. However, taxpayers are encouraged to check with their authorized financial institutions for their costs, deadlines, and eligibility requirements associated with each payment method.

  9. Use IDRS Command Code EFTPS to research payments made through EFTPS.

    Note:

    See IRM 2.3.70, Command Code EFTPS for additional information on CC EFTPS. See IRM 21.5.7.4.7.15 for information on EFTPS payment tracers.

21.2.1.48  (04-22-2014)
Electronic Payment Options for Individuals and Business e-file Users

  1. Individuals may electronically pay federal taxes, including the balance due on their current Form 1040 series return, estimated taxes, and other tax types using the following methods:

    • IRM 21.2.1.48.1, IRS Direct Pay

    • IRM 21.2.1.48.2, Electronic Funds Withdrawal (Direct Debit)

    • IRM 21.2.1.48.3, Payment by Credit Card or Debit Card (General)

    • IRM 21.2.1.48.4, Payment by Credit Card or Debit Card (Integrated e-file and e-pay)

    • IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet)

    • IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS)

  2. Businesses may electronically pay federal taxes, including the balance due on certain returns, using the following methods:

    • Payment by Electronic Funds Withdrawal (Direct Debit). See IRM 21.2.1.48.2, Electronic Funds Withdrawal (Direct Debit)

    • Payment by Credit or Debit Card (Pay by Phone or Internet). See IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet)

    • Electronic Federal Tax Payment System. See IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS)

21.2.1.48.1  (08-21-2014)
IRS Direct Pay

  1. IRS Direct Pay is a new payment application available to Individual Master File (IMF) taxpayers through IRS.gov. It is a free service that allows taxpayers to make electronic payments directly to the IRS from their checking or savings accounts. This service is free and secure, provides electronic confirmation, and the quickest possible way to make a payment.

  2. Important Update: IRS Direct Pay is now in the second phase of the measured rollout. Telephone assistors should now encourage taxpayers inquiring about paying a balance to utilize IRS Direct Pay as a quick, accurate and easy way to make payments towards their IMF balance. Advise taxpayers to input "IRS Direct Pay" to the IRS.gov search field and click the resulting links. Note: When the service is available to the general public, taxpayers will also be able to access it online through IRS.gov where they may select the "Payments" tab and follow the instructions.

  3. IRS Direct Pay is currently only available to IMF taxpayers. The service can be used for the following payment types:

    • Installment Agreements

    • Balance Due Notices

    • Estimated Tax Payments

    • Payments with a return

    • Payments with Extension-to-File. Note: It is not necessary to file a paper Form 4868, Application for Automatic Extension of Time to File for U.S. F1040 Individual Income Tax Return, if a taxpayer makes an extension-to-file payment with IRS Direct Pay

    • Payment for adjusted balance due (e.g, CP 2000 or Exam notice)

    • Payment with Amended Return

    More payment types may become available in the future. Note that at this time only Form 1040-series payments and associated penalties can be made through IRS Direct Pay.

  4. Please advise joint filers using Direct Pay to use their own Social Security Number when verifying, even if they are filing secondary on a return. Programming is in place to ensure payments are directed to the proper joint return, even if the taxpayer is making an estimated tax payment.

  5. Important: Taxpayers must have a valid Social Security Number or an eligible ITIN to use Direct Pay. Most, but not all, ITINs are accepted. The majority of ITINs have a fourth and fifth digit that falls in the range of 70-88. These ITINs are accepted by Direct Pay. Any ITIN with the fourth and fifth digit outside of that range is from a new ITIN series, and has not yet been configured to work with the application. A future update will correct this problem,

  6. In addition to the ineligible ITIN, the following users can not use Direct Pay:

    • First-time filers can not use Direct Pay, since the application has no return history information to use for authentication purposes.

    • Users who have not filed a return in the last six years can not use Direct Pay. The application would not have sufficient filing information for authentication.

    • Users with a non-U.S. bank routing number. IRS Direct Pay requires a U.S. bank routing number (ABA). This nine-digit number is generally printed on checks or is available from your bank. If the taxpayer has an account with an international bank that has a U.S. affiliate, the bank may be able to provide the routing number.

  7. As of April 19, 2014, IRS Direct Pay added new functionality:

    • The ability to schedule a payment from their savings or checking account up to 30 days in advance. Important: This feature is for a single payment and not regular periodic payments. The taxpayer needs to schedule each payment.

    • Payment status look up.

    • Payment rescheduling and cancellations.

  8. IRS Direct Pay is a self-help application, so the number of phone inquiries should be limited. For more information, see IRM 21.2.1.48.1.1, Responding to IRS Direct Pay Inquiries.

    Note:

    The IRS Direct Pay web pages are not yet available in Spanish. A Spanish translation is tentatively scheduled to be released by the end of calendar year 2014.

21.2.1.48.1.1  (05-20-2014)
Responding to IRS Direct Pay Inquiries

  1. Important: Telephone assistors should now encourage taxpayers inquiring about paying a balance to use IRS Direct Pay. Emphasize that it is a quick, accurate and easy way to make payments towards their IMF balance. Taxpayers may access IRS Direct Pay by inputting "Direct Pay" to the IRS.gov search field and clicking the resulting links.

  2. Since IRS Direct Pay is a self-service application, the taxpayer should be able to address most issues using online resources. Please use the following instructions if you receive a telephone inquiry regarding IRS Direct Pay:

    If Then
    Taxpayer calls with general questions about IRS Direct Pay Tell the taxpayer that a link for IRS Direct Pay can be found on the "Payments" tab of the IRS.gov home page. They may also find it by using the IRS.gov search field to input the phrase " Direct Pay" , then clicking the resulting link
    Taxpayer calls to verify payment. Research IDRS using methods described in IRM 21.5.7.4.7.15.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer. The fourth digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments
    Taxpayer has received Letter 5170, Important information about your IRS Direct Pay payment This letter explains that the payment attempted was not successful and provides a description of the problem followed by what to do next. Advise the taxpayer to read the letter carefully and that, in most cases, the problem can be resolved by contacting their financial institution. They may also refer to the listing of error codes included with the letter. (Important: Remind the taxpayer to resubmit the payment as soon as possible to avoid interest and penalty.)
    Taxpayer requests further explanation of a specific error code found on the attachment. See chart below:
       
  3. Taxpayers who receive a letter indicating their IRS Direct Pay transaction was unsuccessful will be provided with an error code. The following chart provides a description of each error along with the instructions for what the taxpayer must do next.

    Code Description Messaging for Next Step
    R01 RETURN: INSUFFICIENT FUNDS Resubmit your payment and ensure you have sufficient funds in your account for this payment.
    R02 RETURN: ACCOUNT CLOSED Resubmit your payment and ensure you enter a valid checking or savings account number.
    R03 RETURN: NO ACCOUNT/UNABLE TO LOCATE ACCOUNT
    R04 RETURN: INVALID ACCOUNT NUMBER STRUCTURE
    R05 RETURN: UNAUTHORIZED DEBIT TO CONSUMER ACCOUNT USING CORPORATE SEC CODE Contact your financial institution for more information on how to correct this issue.
    R09 RETURN: UNCOLLECTED FUNDS
    R11 RETURN: CHECK TRUNCATION ENTRY RETURN
    R12 RETURN: ACCOUNT SOLD TO ANOTHER DFI
    R14 RETURN: REPRESENTATIVE PAYEE DECEASED OR UNABLE TO CONTINUE IN THAT CAPACITY
    R15 RETURN: BENEFICIARY OR ACCT HOLDER(OTHER THAN A REPRESENTATIVE PAYEE) DECEASED
    R16 RETURN: ACCOUNT FROZEN
    R17 RETURN: FILE RECORD EDIT CRITERIA
    R18 ACH REJECT: IMPROPER EFFECTIVE ENTRY DATE
    R19 ACH REJECT: AMOUNT FIELD ERROR
    R20 RETURN: NON-TRANSACTION ACCOUNT
    R21 RETURN: INVALID COMPANY IDENTIFICATION
    R22 RETURN: INVALID INDIVIDUAL IDENTIFICATION
    R23 RETURN: CREDIT ENTRY REFUSED BY RECEIVER
    R25 ACH REJECT: ADDENDA ERROR
    R26 ACH REJECT: MANDATORY FIELD ERROR
    R27 ACH REJECT: TRACE NUMBER ERROR
    R29 RETURN: CORPORATE CUSTOMER ADVISES NOT AUTHORIZED
    R30 ACH REJECT: RDFI NOT CHECK TRUNCATION PARTICIPANT
    R31 RETURN: PERMISSIBLE RETURN ENTRY
    R32 ACH REJECT: RDFI NON-SETTLEMENT
    R33 RETURN: RETURN OF XCK ENTRY
    R07 RETURN: AUTHORIZATION REVOKED BY CUSTOMER Resubmit your payment. You revoked the previous payment.
    R06 RETURN: RETURN PER ODFI REQUEST Resubmit your payment. We returned the previous payment at the request of the originating financial institution.
    R08 RETURN: PAYMENT STOPPED Resubmit your payment. We were unable to process the previous payment due to a stop payment request.
    R10 RETURN: CUSTOMER ADVISES NOT AUTHORIZED Resubmit your payment. We couldn’t process the previous payment because it was not authorized.
    R13 ACH REJECT: INVALID ACH ROUTING NUMBER Resubmit your payment and ensure that you provide a valid routing number for your financial institution.
    R24 RETURN: DUPLICATE ENTRY Contact your financial institution to determine if you need to resubmit your payment.
    R35 RETURN OF IMPROPER DEBIT ENTRY
    R28 ACH REJECT: ROUTING NUMBER CHECK DIGIT ERROR Resubmit your payment and ensure you provide a valid routing number for your financial institution.
    R34 ACH REJECT: LIMITED PARTICIPATION DFI Contact your financial institution to determine if they participate in ACH processing.

21.2.1.48.2  (10-01-2012)
Electronic Funds Withdrawal (Direct Debit)

  1. Taxpayers who electronically file the returns or tax forms listed below via an electronic return originator (ERO) or online can simultaneously authorize the Treasury to make an electronic funds withdrawal (direct debit) from a designated checking or savings account to pay a balance due, including interest and/or penalty.

  2. The following types of taxes may be paid by electronic funds withdrawal when these forms are filed electronically:

    1. Form 1040 series

    2. Form 4868

    3. Form 2350

    4. Form 1040-ES

    5. Form 941

    6. Form 941-PR

    7. Form 941-SS

    8. Form 940

    9. Form 940-PR

    10. Form 944

    11. Form 1041

    12. Form 1065/1065B

    13. Form 1120/1120S/1120POL/ 1120F

    14. Form 7004

    15. Form 990-PF

    16. Form 8868

    17. Form 720

    18. Form 2290

  3. Late payments, including interest and/or penalty may be accepted if the electronic filing option extends beyond the return due date. There are no separate entries on the payment record for interest and/or penalty amounts. Those amounts should be combined with the tax due and the total should be reflected in the "Amount of Tax Payment" entry on the payment record.

  4. For some forms, such as Form 1040 and Form 1120 series returns, taxpayers may e-file early and schedule a payment for withdrawal on a future date, up to and including the return due date. After the return due date, the payment date is equal to the date the return is filed electronically. For example: If there are issues that prevent the return from being processed until 05/01/11, then 05/01/11 is treated as the payment date.

  5. Form 1040-ES payment requests must be authorized at the same time the Form 1040 series return, or Form 4868 extension is electronically filed. Estimated tax payments may be made whether or not there is a balance due on the return. Taxpayers may schedule payments for withdrawal on April 15, 2014 (1st quarter), June 17, 2014 (2nd quarter), September 16, 2014 (3rd quarter) or January 15, 2015 (4th quarter).

  6. Up to four estimated payments may be initiated with an electronically filed Form 1040 series return, or a Form 1040 return, Form 2350 extension, or Form 4868 extension form (using Modernized e-File (MeF) software). When one or more 1040-ES payments are made, IRS automatically enrolls a taxpayer in EFTPS (if not already enrolled). An enrollment letter is only mailed to a taxpayer when he calls EFTPS to request one. A taxpayer does not have to use EFTPS. We offer this option in case the taxpayer cancels an EFW payment and/or did not submit all four of their payments through EFW, and therefore now needs to make one or more additional payments. Taxpayers should call 1–800–316–6541 (available 24/7) for more information.

  7. For Form 2350 and Form 4868, taxpayers may schedule a payment for withdrawal on a future date up to and including the return due date.

  8. For Form 1065/1065B, taxpayers may schedule a payment for withdrawal on a future date up to and including the return due date.

  9. A taxpayer should refer to his/her tax preparation software or tax professional to determine if a partial payment may be made and to find out what the operational periods are for any electronic payment they may make.

  10. Taxpayers are prompted to enter the bank account number and routing transit number. Most rejects (a reject is technically referred to as a "return" by the financial institution) occur because one or more of these numbers do not exactly match the information contained by a taxpayer's financial institution. Taxpayers should verify these numbers with their financial institution prior to entering them on the payment record to prevent rejection of the payment.

  11. Taxpayers cannot change the bank account number or routing transit number once the return or form is filed. If the bank information changes, was entered incorrectly, or the account is closed prior to the scheduled payment date, the taxpayer should cancel the payment (time permitting) and make other payment arrangements to ensure that the balance is satisfied.

  12. To cancel scheduled payments, taxpayers should call toll-free, 1–888-353-4537. Cancellations must be requested no later than 11:59 p.m., Eastern Time, at least two business days prior to the scheduled payment date.

  13. Taxpayers may also call the above number to inquire about the status of their payment(s) or for assistance regarding any letter they may have received pertaining to their electronic funds withdrawal request. Letters include, 4870 for returned payments and 4872 for canceled payments. This inquiry service is available year round, 24/7.

    Note:

    Taxpayers should wait at least ten days after returns are electronically filed and accepted before making any inquiries.

  14. The payer's bank statement provides confirmation of payment. The statement will include "United States Treasury Tax Payment" or something similar.


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