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Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 1. Taxpayer Contacts Resulting From Notice Issuance (Cont. 1)

21.3.1  Taxpayer Contacts Resulting From Notice Issuance (Cont. 1)

21.3.1.4 
Notice Descriptions

21.3.1.4.36  (10-01-2002)
CP 51C Form 1040, 1040A, 1040EZ Non-Compute

  1. Notifies taxpayer the IRS computed his/her tax and account balance is zero.

    If Then
    Taxpayer agrees with notice Advise that no action is required.
    Payment was not properly credited Research IDRS for missing payment. See IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees with notice Follow procedures for CP 51A.

21.3.1.4.37  (10-01-2002)
CP 53 Notice of Electronic Funds Transfer

  1. Notifies taxpayer an electronic funds transfer was not honored. Advise taxpayer:

    1. No action is required. Because the financial institution could not accept direct deposit of the refund, IRS is issuing a paper check.

    2. Taxpayer will receive refund within 3 weeks if no other Federal taxes or obligations are owed and a refund amount remains.

    3. If three weeks have passed, see IRM 21.4.1, Refund Research.

21.3.1.4.38  (01-14-2009)
CP 54x Series Notices, SSN and Name Inquiries

  1. There are four notices in the CP 54x series: CP 54B, CP 54E, CP 54G, and CP 54Q.

  2. These notices are issued when a return with an invalid primary SSN posts. The taxpayer may receive a math error notice instead. See IRM 21.5.4, General Math Error Procedures, for more information.

  3. The account is invalid (found on the invalid segment of MF). The CP 54x series notices advise the taxpayer of the invalidity and ask him/her to verify the name and SSN so that the Service can release a refund. See IRM 21.6.1.5.6, Resolving CP 54 Notices with Math Error Involvement Procedure and IRM 3.13.5.46.7, Processing CP 54 Notices.

  4. See IRM 3.13.5.10.2, IRS Individual Taxpayer Identification Number (ITIN) Format for information on ITINs and IRM 21.5.6, Freeze Codes, for information on "I" Freeze. Usually an account with an invalid SSN also has a "G" Freeze (math error), see IRM 21.5.4, General Math Error Procedures.

21.3.1.4.38.1  (01-08-2008)
CP 54B Problem With Name and Identifying Number (Refund Delayed)

  1. Notifies taxpayer of a problem with name and SSN on a refund return.

    1. Research IDRS to verify name and SSN. See IRM 3.13.5, IMF Account Numbers, for procedures.

    2. If you are unable to verify entity information and resolve issue with oral statement, advise taxpayer to complete, sign, and return second page of the notice.

    3. Taxpayer will receive refund within 30 days of receipt of reply if no other Federal taxes or obligations are owed and a refund amount remains.

    4. See IRM 21.5.6, Freeze Codes, if there is a "G" Freeze on the module.

21.3.1.4.38.2  (01-08-2008)
CP 54E Estimated Tax Payments - Problem With Name and Identifying Number

  1. Notifies taxpayer of a problem with name and SSN on estimated tax payment.

    1. Research IDRS to verify name and SSN. See IRM 3.13.5, IMF Account Numbers, for procedures.

    2. If you are unable to verify entity information and resolve issue with oral statement, advise taxpayer to complete, sign and return second page of the notice.

    3. If the payment is on the wrong TIN, input a credit transfer.

21.3.1.4.38.3  (01-08-2008)
CP 54G Problem With Name and Identifying Number (Even Balance/Balance Due)

  1. Notifies taxpayer of a problem with name and SSN on return with an even balance or a balance due.

    1. research IDRS to verify name and SSN. See IRM 3.13.5, IMF Account Numbers, for procedures.

    2. If you are unable to verify the entity information and resolve issues with oral statement, advise taxpayer to complete, sign and return second page of the notice.

    3. If the taxpayer agrees with the balance due, request full payment. See IRM 5.19.1.5.2, Can Full Pay Balance Due Now (Payoff) or IRM 5.19.1.5.4, Can Pay by Installments.

    4. If the taxpayer disagrees with the balance due because of a misapplied payment, research for the payment and input a credit transfer. Refer to IRM 21.5.8, Credit Transfers.

21.3.1.4.38.4  (01-08-2008)
CP 54Q Problem With Name and Identifying Number (Second Request)

  1. Automatic follow-up notice (second request) to the CP 54B.

  2. Automatically generates one year after the CP 54B if the taxpayer still resides on the invalid segment of Master File.

  3. See IRM 21.3.1.4.38.1, CP 54B Problem With Name and Identifying Number (Refund Delayed) .

21.3.1.4.38.5  (10-01-2003)
Form 4149 Information to Correct Invalid SSN

  1. Form 4149 is used to request information from the taxpayer when oral statement cannot be used to correct the invalid condition. See table below.

    If Then
    Disclosure requirements are not met or the taxpayer's account information cannot be verified. See IRM 21.1.3.2, General Disclosure Guidelines. You cannot correct the name/TIN with oral statement
    1. Complete the top of the Form 4149, Information to Correct Invalid Social Security Number.
    2. Mail the form to the taxpayer to complete the remainder of the form. Instruct taxpayer to return the form within 10 days.
    3. Enclose a return envelope (with your sites address preprinted) for the taxpayer's convenience.
    4. Enter a history item on IDRS, e.g., "F4149TOTP " .
    A completed signed Form 4149 is received Correct the invalid condition. IRS validate.

21.3.1.4.39  (01-08-2008)
CP 57 Insufficient Funds

  1. Informs taxpayer a direct debit installment agreement payment was not honored due to insufficient funds.

    If Then
    Taxpayer agrees Request submission of missing payment
    Taxpayer is experiencing difficulty that will prevent further installment payments from being honored See IRM 5.19.1, Liability Collection Balance Due.
    Taxpayer has reasonable cause for removal of penalty See LEM 20.1.10.5.7, Erroneous Penalty Assessments on EFT Payments and Payments Made by Other Than Paper Check or Money Order.
    Taxpayer insists there were sufficient funds in their account Advise the taxpayer to contact their bank.

21.3.1.4.40  (01-14-2009)
CP 58 Spouse’s Missing SSN

  1. Informs taxpayer spouse's SSN is missing. These accounts should show a math error freeze (G). See IRM 21.5.4, General Math Error Procedures, for instructions on how to work math errors. See IRM 3.13.5, IMF Account Numbers, for more information on entity changes.

    If And Then
    Spouse has a valid SSN Neglected to enter it on the return. Validate SSN and determine that no other taxpayer is found under the number. Input TC 017 with oral statement.
    Spouse does not know or have an SSN   Advise him/her to contact the Social Security Administration (SSA) to obtain a Social Security Number.
    Spouse is not eligible for an SSN   See IRM 3.13.5.24, IRS Individual Taxpayer Identification Numbers (ITINs), for W–7 procedures

21.3.1.4.41  (10-01-2002)
CP 60 Notice of Debit Balance Created

  1. This notice is generated when a credit is transferred out creating a debit balance of $5.00 or more. Informs taxpayer of a credit reversal.

    If Then
    Taxpayer agrees with notice Request full payment.
    Payment was not properly credited 1. Research IDRS for missing payment.
    2. Refer to IRM 21.5.7, Payment Tracers.

21.3.1.4.42  (10-01-2002)
CP 62 Notice of Credit Transfer

  1. Informs taxpayer a payment he/she inquired about was located and applied to a specific account. The notice also advises of one of the following:

    • A balance due

    • An even balance

    • A refund has been or will be issued subject to offset for any Federal tax or other obligations owed (i.e., a TOP offset for child or spousal support, Federal non-tax debts, or state income tax).

  2. Research IDRS and explain reason for notice. Follow procedures in table below.

    If And Then
    Taxpayer agrees with notice There is an overpayment 1. Advise refund will be issued within two to four weeks. Warn of possible offset.
    2. If more than four weeks have passed, see IRM 21.4.1, Refund Research.
    Taxpayer agrees with notice There is a balance due 1. Request full payment.
    2. See IRM 5.19.1, Balance Due.
    Payment was made Was not properly credited to the account 1. Research IDRS for payment.
    2. See IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees with notice for a reason other than a missing payment Provides justification Refer to appropriate IRM and take action necessary to correct account.


21.3.1.4.43  (10-01-2002)
CP 71 Reminder of Tax Due

  1. Issued once a year to remind taxpayer of a balance due, including penalty and interest. The notice is generated on accounts previously in a deferred Status (Status 23).

    If And Then
    Taxpayer agrees with notice Taxpayer’s financial status has not changed No action is necessary.
    Taxpayer indicates his/her financial status has changed Payments can now be made 1. Request payment.
    2. See IRM 5.19.1, Balance Due.
    Taxpayer indicates a payment was made Was not properly credited to account 1. Research for payment.
    2. See IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees with notice for reasons other than missing payment Provides justification Refer to appropriate IRM and take action necessary to correct account.

21.3.1.4.44  (10-01-2004)
CP 71A Annual Reminder Notice

  1. Issued once a year on tax modules in Status 53 (currently not collectible). Status 53 is an IDRS status and the module may show another Master File status.

    If Then
    Taxpayer offers to make payments 1. Establish installment agreement.
    2. See IRM 5.19.1, Balance Due.
    Taxpayer requests a final payoff Compute payoff amount.
    Taxpayer is unable to pay 1. Explain CP 71A is an annual notice. No enforcement action will be taken at this time.
    2. Ask taxpayer to make payments whenever possible.
    3. See IRM 5.19.1, Balance Due.

21.3.1.4.45  (10-01-2002)
CP 71C and CP 171 Annual Reminder Notices

  1. Issued annually for all TDA's in the queue that have been in status 24 for at least one year. The Compliance Services Collection Operations (CSCO) return address will be on the notice along with an Automated Collection System (ACS) telephone number. These notices are issued from February through November based on the taxpayer's TIN.

21.3.1.4.46  (10-01-2004)
CP 71D Reminder of Balance Due

  1. Issued once a year on accounts in collection Status 22 and 26. A separate notice is issued for each module in Status 22 or 26.

    If Then
    Taxpayer believes figures are incorrect Advise him/her to contact IRS employee assigned to case.
    Taxpayer has recently been contacted by IRS and has paid or arranged to pay Advise taxpayer that notice is required by law and to disregard.
    Call received on Toll Free numbers (other than ACS) If in Status 22 transfer to ACS.
    If Status 26 transfer to the field office controlling the account.
    Calls received on Collection Function-field (CFf) Refer to ACS on Form 4442, Inquiry Referral.
    Taxpayer offers to make payments See IRM 5.19.1, Balance Due
    Taxpayer requests a final payoff Compute payoff amount.
    Taxpayer is unable to pay See IRM 5.19.1, Balance Due.

21.3.1.4.47  (10-01-2002)
CP 75 Exam Initial Contact Letter – EIC – Refund Frozen

  1. The CP 75 informs the taxpayer that his/her refund will be held pending an examination. The case will be open in the Audit Information Management System (AIMS) in Origination Code 5041, Project Code 99, and source code 06. See IRM 21.5.10.4.1, EITC and Other Projects, for information on how to handle these cases.

21.3.1.4.48  (01-14-2009)
CP 81 Reminder Notice

  1. This notice is issued when the refund statute is within six months of Refund Statute Expiration Date (RSED). The CP 81 informs the taxpayer "We May Have A Refund For You" . The CP 81 is issued to coincide with news and press releases to remind taxpayers:

    1. A return has not been filed

    2. The time to file a claim for a refund/overpayment is about to expire

    3. A return/claim must be filed to claim the overpayment before the RSED.

  2. See IRM 25.6.1.6.17, CP 81/081 for additional information.

21.3.1.4.49  (01-08-2008)
CP 85 and CP 87 (Exam Soft Notices)

  1. These are soft notices issued by Examination. They are sent for information purposes only and inform the taxpayer they may have claimed one of several tax benefits in error.

  2. No adjustments are made to the return, nor will be made, unless the taxpayer initiates an adjustment. For additional information and adjustment procedures, see IRM 21.5.10.4.2, Examination Soft Notices CP 85 A, B & C and CP 87 A, B, C & D.

21.3.1.4.50  (10-01-2002)
CP 83 Math Error, Referral to Examination

  1. Solicits taxpayer's agreement to proposed reassessment of tax abated under the special math error assessment procedures. This notice is generated when taxpayer uses "unsubstantiated math error procedures." Advise taxpayer that this is not a bill; however, a response is required.

    If Then
    Taxpayer agrees with notice Advise him/her to sign and date the form waiving restrictions on assessment and collection of the deficiency and return it to address on notice.
    Taxpayer disagrees with notice Ask taxpayer to send an explanation to address on the notice within 30 days from the notice date.


21.3.1.4.51  (10-01-2007)
CP 86 Interest Restriction

  1. This is an internal notice and as of 01/01/2001 this notice should generate in the same cycle as the TC 150. Research to determine the reason for the restriction and compute the current amount of interest to assess or abate.

  2. Do not recompute assessed interest unless you discover an obvious error when performing normal interest update procedures.

    Reminder:

    Do not use complete recomputation as a review procedure. Finding previous errors is not the purpose of recomputations.

  3. Update interest from the last interest update on manually computed accounts. Request return and source documents if necessary.

  4. Refer to IRM 20.2, Interest and LEM 20.2, Interest for interest computation.

  5. Refer to IRM 21.7.11.4.5.1, Routing of CP 186 with U-, -V, -W, -Y, or TC 521 with Closing Codes 81 or 85–89.

21.3.1.4.51.1  (10-01-2004)
CP 86 FTP Restriction

  1. Failure to Pay (FTP) penalty must be manually reviewed when the penalty is restricted from the computer computation. Input changes to penalty manually.

  2. Analyze module to determine if Failure-to-File (FTF) penalty was correctly reduced to 22.5% (4.5% per month) when the TC 270 was assessed .If the maximum FTP penalty has been assessed and there is no TC 971 AC 262 on the account, input TC 971 AC 262 using CC REQ77.

21.3.1.4.51.2  (10-01-2007)
Adjusting CP 86 Accounts

  1. Analyze tax module, transcript, and source document to determine if you should manually adjust interest or penalty. See IRM 5.19.1, Balance Due, to resolve the "—C" freeze conditions. Do the following:

    Note:

    Accounts which are now or have been in Taxpayer Delinquent Account (TDA) status (Collection statuses 22, 24, 26 or 60) will be transferred to Atlanta CSCO. Do not close the Submission Processing control base nor send any paper to Atlanta CSCO. Accounts Management technicians must reassign to a unique IDRS number, 0765500001.

    If Then
    No additional interest or penalty adjustment is necessary Input TC 290 for .00 with blocking series 05 (Use Blocking Series 00 if you have original return) and Hold Code (HC) 3. Use CP 86 as source document.)
    Manual action is necessary 1. Recompute interest or FTP penalty as applicable following IRM 20.1, Penalty Handbook, or IRM 20.2, Interest
    2. Input necessary adjustments.
    3. Use Hold Code 0.
    4. See IRM 20.2.8.3(1) a and b, Manual Computations, when manually computing and adjusting interest and IRM 20.1.2.1.7.1(3), Campus/Customer Service, for appropriate Blocking Series when adjusting FTF and/or FTP penalty.
    Available credit is less than the additional amount Assess total additional amount.

    Exception:

    If the additional amount exceeds available credit by ≡ or less, assess only the available credit. Do not assess zero balance account for an amount less than ≡ ≡ ≡ ≡ .

    Available credit is more than the additional amount. Assess only the additional amount due and let the remainder be refunded.

    Reminder:

    Per IRC § 6631 anytime interest is manually computed as in the case of the CP 86, an explanation must be sent to the taxpayer. Refer to IRM 20.2.8.3, Manual Computations.

21.3.1.4.52  (10-01-2004)
CP 89 Annual Reminder Notice

  1. CP 89 is an annual reminder notice sent on all accounts with installment agreement activity. This notice is sent annually and required by Section § 3506 of RRA '98. The notice provides the following information:

    • For your Records—This is not a Bill

    • Provides a one year accounting of all payments submitted

    • Shows modules to which payments were applied

    • Shows all balance due periods

  2. The notice instructs the taxpayer to:

    If And Then
    The notice shows restricted interest and/or penalty The taxpayer wants a balance with the penalty and interest Contact the Service at the telephone number on the notice
    The notice does not show all of the payment(s) they made during the year.   Contact the Service at the telephone number on the notice

21.3.1.4.53  (10-01-2007)
Form 9774 Annual Reminder Notice on NMF Accounts

  1. Sent to all Non-Master File (NMF) accounts, including TDAs and those in Status 53. See IRM 21.3.1.4.102, Non-Master File (NMF) Notices, for more information.

21.3.1.4.54  (10-01-2004)
CP 314 IRA Balance Due For Form 5329

  1. Issued as a first notice to inform the taxpayer of a balance due when there is no math error. Advise taxpayer this is a request for payment of IRA Taxes.

    If Then
    Taxpayer agrees with balance due 1. Request full payment.
    2. See IRM 5.19.1.5.2, Can Full Pay Balance Due Now (Payoff).
    A payment is missing Research IDRS for payment, and see IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees with notice Refer to the appropriate IRM and take action necessary to correct the account.

21.3.1.4.55  (10-01-2002)
CP 321/322 IRA Exam/DP Adjustment

  1. Informs taxpayer of an adjustment to his/her account (printed on Form 8488). Research IDRS and explain reason for notice.

    If Then
    Taxpayer agrees with notice No response is necessary.
    A refund is due 1. Advise it will be received within four weeks if no other federal taxes or obligations are owed and a refund amount remains.
    2. If four weeks have passed and taxpayer has not received refund. See IRM 21.4.1, Refund Research.
    Adjustment is the result of an examination and taxpayer disputes deficiency assessment Advise under certain conditions, you may request an audit reconsideration. See IRM 21.5.10, Examination Issues.

21.3.1.4.56  (10-01-2004)
CP 2000 Proposed Changes to Income Payments, Credits, or Deductions

  1. Informs taxpayer of a proposed change to tax liability because of income that is not identifiable or apparently not fully reported on the return and/or credits and deductions that appear overstated.

  2. When a CP 2000 is issued, the Underreporter function puts a control on the module. IDRS research shows:

    • A TC 922

    • An underreporter process code

    Note:

    If only the TC 922 (no process code) is on the account, do not refer case to Underreporter. Work following normal procedures.


    Note:

    The penalty explanation line on the CP 2000 is used only when the taxpayer owes a penalty.


21.3.1.4.57  (10-01-2009)
Status of Underreporter Cases

  1. Underreporter Process Codes are found in Chapter 8, Section 18 of Document 6209, IRS Processing Codes and Information, and in IRM 4.19.3–5 , AUR Process Codes. You can determine the Status of an Underreporter case and its location by the last process code. Refer to the chart below when determining if a case should be processed or referred to another area.

    Note:

    If additional assistance is required, contact the appropriate Automated Underreporter (AUR) Coordinator. A listing is provided under the "Who/Where" tab (http://serp.enterprise.irs.gov/databases/who-where.dr/aur-coordinators.htm) on the Servicewide Electronic Research Program (SERP) home page. Do not share the telephone contact information with the taxpayer.

    If Then
    The last process code is 01, 03 or 06 1. The AUR issue or case is pending, and the taxpayer may or may not receive a notice. Do not refer the case to AUR.
    2. Respond to the taxpayer following normal procedures.

    • Tax year 2007, TC 922 and a process code string of 03, 16

    • Tax year 2008, TC 922 and process code 07

    		 There is no AUR case. This designates a soft notice, CP 2057. See IRM 4.19.2.1.1, Soft Notices (CP 2057), for more information.

    1. If a paper response, do not refer to AUR. Respond to the taxpayer following normal procedures.

    2. If a phone contact and the taxpayer asks about the CP 2057, refer the taxpayer to the dedicated test toll-free numbers. If the first two digits of the TC 922 DLN are 18 (WI), refer to 866–449–8593. If the first two digits of the TC 922 DLN are 28 (SB/SE), refer to 866–379–6176.

    The last process code is 11–14,15*,16, 18*, or 21–29

    Note:

    *PC 15/18: If the PC immediately preceding PC 15 or 18 is 01, 03, or 06 the case was closed without taxpayer contact.

    		 1. The AUR issue or case was closed, and taxpayer will not receive a notice. Do not refer case to Underreporter.
    2. Respond to the taxpayer following normal procedures.
    TC 922 but no process code is shown Underreporter does not have a case.
    1. Do not send a Form 4442, Inquiry Referral.
    2. Work following normal procedures.
    The last process code is 35, 36, 38, 44, 46, 62–66, 72, 80, 82–86, Case was transferred to another area. Contact that area (to change information). Request a copy of the CP 2000.
    The last process code is 09, 30, 34, 54, 55, 57–60, 75, 77–79, 81, 95, 97–99 Case is open in Underreporter.
    (1) If this is a telephone contact and the taxpayer's underreporter issue is beyond the scope of your training, refer the caller to the AUR toll-free telephone numbers.

    Caution:

    If the last process code is 09, the taxpayer has not yet been contacted by AUR. Only refer the caller to AUR if they are calling about the underreporter issue.

    Note:

    If the first two digits of the TC 922 DLN are 07, 18 or 89, use 1-800-829-3009 Wage and Investment (W&I).


    Note:

    If the first two digits of the TC 922 DLN are 19, 28 or 29, use 1-800-829-8310 Small Business / Self Employed (SB/SE).


    Note:

    For overseas callers, prepare Form 4442, Inquiry Referral, and include the complete foreign address of the taxpayer.


    2. If this is a paper case, route the correspondence or Form 1040X to the campus where the case is assigned. The first two digits of the TC 922 DLN indicate where the case is assigned.
    The last process code is 15*, 18*, 39, 47, 48, 51, 52, 69, 70, 71, 73, 74, 89, 91, 92, 93 or 96

    Note:

    PC *15/18: If the PC immediately preceding PC 15 or PC 18 is other than 01, 03 or 06, the taxpayer was contacted by AUR.

    Note:

    The following are the definitions of three Process Codes. They are:
    67 - Fully agreed no letter
    75 - STAT Notice issued.
    90 - Tax assessed by default.

    		Case was worked and closed by Underreporter with no change to the tax liability and/or refundable credits.

    • Do not refer the case to AUR.

    • Respond to the taxpayer following normal procedures.
    The last process code is 20, 53, 67, 68, 87, 88, 90 or 94

    Note:

    The following are the definitions of three process codes. They are:
    67 - Fully agreed (CP 2000 Notice)
    87 - Fully agreed (Stat Notice)
    90 - Tax assessed by default

    		Case was worked and closed by Underreporter with an adjustment to tax liability and/or refundable credits.
    1. If this is a telephone contact for other than payment information or options, refer the caller to the AUR toll-free telephone numbers.

    Note:

    If the first two digits of the TC 922 DLN are 07, 18 or 89, use 1-800-829-3009 (W&I).


    Note:

    If the first two digits of the TC 922 DLN are 19, 28 or 29, use 1-800-829-8310 (SB/SE).


    Note:

    For overseas callers, prepare Form 4442, and include the complete foreign address of the taxpayer.


    2. If the taxpayer files a claim or amended return requesting a refund or abatement of tax previously assessed by AUR , route the case to AUR at the campus where the case was worked. Do not route cases to AUR that do not address or do not request reconsideration of the AUR assessment. See Examples below of case types NOT to be sent to AUR. If the taxpayer is denying receipt or disagrees with the amount of the AUR identified income, route the correspondence or Form 1040X, Amended U.S. Individual Income Tax Return, to AUR at the campus where the case was worked. The first two digits of the TC 922 DLN indicate where the case is assigned. Refer to the Open AUR Addresses listing on SERP.

    3. The Examples below are situations where the taxpayer is not denying the receipt or disagreeing with the amount of the AUR identified income. Do not route these types of cases to AUR. These Examples are not intended to be all inclusive.

    Example:

    Form 1040X received with a Schedule C, reducing income through expense reporting and subsequently reducing self-employment tax.

    Example:

    Form 1040X received with Schedule D, adjusting the basis on the underreported capital gain.

    Example:

    Form 1040X filed only to change filing status and/or add a dependent.

    Reminder:

    A TC 240 penalty assessed by AUR for substantial understatement of income must be adjusted when decreasing the previous AUR assessment. If the adjustment is not related to the AUR assessment, do not adjust the TC 240 penalty. See IRM 20.1.5.8, IRC Section 6662(d): Substantial Understatement, for more information on calculating the penalty. Refer to IRM 20.1.5.3.2, Penalty Assessment, for information on adjusting the penalty.

    Note:

    If additional assistance is required, contact the appropriate AUR Coordinator. A listing is provided under the "Who/Where" tab on the SERP home page. Do not share the telephone contact information with the taxpayer.


    Reminder:

    Input TC 971/015 when forwarding an amended return/claim to the Underreporter operation (e.g. TC 922 process code 55).

21.3.1.4.58  (10-01-2007)
Resolving or Referring Underreporter Cases

  1. Explain reason for notice. Ask taxpayer to compare his/her records with income and withholding listed on the CP 2000. You can often resolve the discrepancy based on the taxpayer’s response.

  2. If you cannot resolve the discrepancy based on the taxpayers response, refer the taxpayer to the appropriate toll free AUR telephone number after determining where their CP 2000 originated. The originating campus is determined from the address in the upper left corner of the CP 2000 (if available). If the notice was generated from Brookhaven, Ogden, or Philadelphia, the number is 800–829–8310. If the notice was generated from Atlanta, Austin, or Fresno, the number is 800–829–3009.

    Note:

    If you cannot resolve the discrepancy, and the taxpayers chooses not to call the toll free AUR telephone number, offer to complete a Form 4442, Inquiry Referral, including all relevant information along with the taxpayer's oral statement. Make sure to include the taxpayer's name and daytime telephone number so that information can be verified, if necessary. Forward Form 4442, Inquiry Referral, to the AUR campus that generated the AUR case. Inform the taxpayer that he/she will hear from AUR by phone or correspondence, within 45 days.

  3. Follow table below if taxpayer agrees with notice.

    If Then
    Taxpayer agrees with notice Advise taxpayer to check option 1, sign and date the consent form, and forward in enclosed envelope to the campus listed on the notice.
    Notice involves a joint return Advise taxpayer to have spouse sign and send full payment with the notice.
    Taxpayer cannot pay in full 1. Advise taxpayer to pay as much as possible; inform taxpayer that he/she will receive a bill for the additional tax and interest if full payment is not received within 30 days.
    2. Remind taxpayer interest accrues on the outstanding balance until fully paid. See IRM 5.19.1.5.4.18, Pre-Assessed Installment Agreement Requests, for information on preassessed installment agreements.
    3. Advise taxpayer to return the signed CP 2000 along with first payment.
    4. Advise taxpayer to update his/her copy of the return.


    Note:

    Refer to IRM 5.19.1, Balance Due and IRM 5.19.1.6, Analyze Taxpayer's Ability to Pay.



  4. Follow actions in table below if taxpayer does not agree with notice.

    If Then
    Taxpayer partially agrees or totally disagrees Ask taxpayer why he/she disagrees.
    The reason for disagreement is an issue that can be resolved with oral statement See IRM 21.3.1.4.61., "Oral Statement."
    Explanation does not fall within oral statement criteria 1. Advise taxpayer to check option 2 (does not agree with some of the changes) or option 3 (does not agree with all of the changes ), as appropriate, on the response page of the CP 2000, and return with information explaining the discrepancy.
    2. Sign all correspondence and forward it to the AUR unit, include SSN and request for abatement of assessed penalties.
    Taxpayer says he/she prefers to file a 1040X instead of responding to CP 2000 Advise taxpayer that it is not necessary to file a Form 1040X, Amended U.S. Individual Income Tax Return, and that it could delay the processing of their case. If the taxpayer still wants to file a 1040X, then advise him/her to write ″CP 2000″ along the top and attach the completed and signed Form 1040Xbehind the CP 2000 and to mail the it to the address of the originating AUR Campus (not the mailing address where the taxpayer filed their original return.) AUR will include the Form 1040Xin working the response.
    Taxpayer partially agrees and is sending payment Advise taxpayer to indicate payment is to be credited only against that amount.
    Taxpayer disagrees, but indicates a willingness to pay to prevent interest from accruing 1. Advise taxpayer to check option 2 (does not agree with some of the changes) or option 3 (does not agree with all of the changes), as appropriate, include any pertinent documentation and/or explanation and return the CP 2000.Tell taxpayer to write " Section 6603 Deposit" on the response page of the CP 2000.
    2. Sign correspondence and include SSN.


  5. Tell taxpayers to respond if advised of a refund. Otherwise, the case could be closed with no refund issued because confirmation of overpayment was not available. If taxpayer should have responded, ask him/her to forward requested justification.

  6. If taxpayer returns the notice and requests a response, advise taxpayer that he/she should receive a response within 45 days. If taxpayer calls and indicates response was not received within 45 days and the issue cannot be immediately resolved after you have exhausted all of your functional area resources, the inquiry meets Taxpayer Advocate Service (TAS) criteria. Prepare Form 911, Request for Taxpayer Advocate Service Assistance and (Application for Taxpayer Assistance order), and forward to your local TAS office.

  7. If taxpayer requests a copy of his/her tax return, use the CP 2000 as a turnaround document. Send the request to IRS address on the notice.

  8. If the taxpayer indicates a need to contact a W-2 payer, advise the taxpayer of different sources to obtain this information, Yellow Pages, the World Wide Web, directory assistance. If the taxpayer has tried these sources and failed, research IDRS and provide the address if available.

21.3.1.4.59  (10-01-2007)
Copies of CP 2000/2501/2893C

  1. For copies of the CP 2000/2501/2893C, see table below.

    Note:

    Users having access to Desktop Integration (DI)/Accounts Management Services (AMS) may print and provide a copy of the CP 2000 and the CP 2501 to the taxpayer if the notice is for tax year 2003 or subsequent.

    Caution:

    When using DI/AMS to provide the taxpayer with a copy of CP 2000 or CP 2501, review the notice date. If the taxpayer has not had enough time to receive the AUR notice, do not disclose any AUR notice information including the presence of the notice.


    If Then
    Taxpayer requests a copy of a CP 2000, CP 2501, or Letter 2893C, Underclaimed/Overclaimed Withholding Excess Social Security or Medicare Tax Closure. (1) If this is a telephone contact, refer the caller to the AUR toll-free telephone numbers.

    Note:

    If the first two digits of the TC 922 DLN are 07, 18 or 89, use 1-800-829-3009 (W&I).


    Note:

    If the first two digits of the TC 922 DLN are 19, 28 or 29, use 1-800-829-8310 (SB/SE).


    Note:

    For overseas callers, prepare Form 4442, and include the complete foreign address of the taxpayer.


    2. If this is a paper case, route the correspondence or Form 1040X, Amended U.S. Individual Income Tax Return, to the campus where the case is assigned. The first two digits of the TC 922 DLN indicate where the case is assigned.

  2. Advise taxpayer to expect a reply within 60 days unless the caller has been provided with the AUR toll-free number.

21.3.1.4.60  (10-01-2009)
Underreporter Letters

  1. In addition to CP 2000, Underreporter uses other letters to request and gather information. If taxpayer indicates he/she has received these letters, explain based on the following:

    • Letter 1802C— Used to notify taxpayer of conclusion of their Underreporter case. No response is expected.

    • Letter 2625C— Used to correspond with an employer/payer to clarify income from Form W-2, Wage and Tax Statement, and the Form 1099 series. Ask employer/payer to complete form and return.

    • Letter 2626C— Used to correspond with taxpayer to obtain additional information or to provide further explanation subsequent to a CP 2000 or CP 2501 notice. A response is usually expected.

    • Letter 2627C— Used to obtain missing information when an incomplete Power of Attorney (POA) is submitted by taxpayer. A response is expected.

    • Letter 4314C — Used to inform taxpayer that case is not yet resolved. This is issued from AUR when another action is being taken on a case at the same time (e.g., when a letter to validate income or additional research is being conducted).

      Note:

      Assistors may see older cases (pre-2007) where Letter 2645C was used to inform the taxpayer that case is not yet resolved.

    • Letter 2893C— Used to notify taxpayer of adjustment due to Underclaimed or Overclaimed Withholding, Excess Social Security, or EITC.

  2. AUR sends CP 2005 to taxpayers to thank them for information and to inform them that AUR is closing the case.

  3. If taxpayer has questions about these notices, provide the taxpayer with the toll-free AUR telephone number.

    • Atlanta Campus - 800-829-3009

    • Austin Campus - 800-829-3009

    • Brookhaven Campus - 800-829-8310

    • Fresno Campus - 800-829-3009

    • Ogden Campus - 800-829-8310

    • Philadelphia Campus - 800-829-8310

    • For overseas callers, prepare Form 4442, Inquiry Referral, and include the complete foreign address of the taxpayer.

  4. Beginning in tax year 2007, AUR is conducting a test of a soft notice, CP 2057 to certain taxpayers with apparent underreported income. See IRM 4.19.2.1.1 , Soft Notices (CP 2057), for more information. If the taxpayer has questions about a CP 2057, refer them to the dedicated test toll−free numbers as follows:

    • if the TC 922 DLN begins with 18 (WI) refer to 866–449–8593

    • if the TC 922 DLN begins with 28 (SB/SE) refer to 866–379–6176

    Note:

    If the contact is a paper case, do not refer to AUR. Work and respond to the taxpayer following normal procedures.

21.3.1.4.61  (01-12-2006)
Oral Statement

  1. AUR accepts oral statements for resolution of a number of issues. See IRM 4.19.3.20.2, Telephone Responses.

    Caution:

    Many of these oral statements involve Official Use Only (OUO) information. Please be careful not to release OUO information to taxpayers.

  2. Provide the taxpayer/authorized representative (see 3 below) with the AUR toll-free telephone number or follow instructions in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, for completing Form 4442, Inquiry Referral.

  3. Oral statements are accepted from a designated third party only if taxpayer has completed the Authorization Statement on the CP 2501/ CP 2000 or submitted a valid Power of Attorney (POA).

21.3.1.4.62  (10-01-2007)
CP 2501 Pre-CP 2000 Contact Letter

  1. An initial contact letter requesting additional information. In certain situations, issuance of a CP 2501 provides better customer service since it is an inquiry instead of a proposal of assessment.

    1. Explain why the notice was received and refer the taxpayer to the AUR toll-free telephone number (W&I 1-800-829-3009 and SB/SE 1-800-829-8310. For overseas callers, prepare Form 4442, Inquiry Referral, and include the complete foreign address of the taxpayer).

    2. If it is inconvenient for the taxpayer to make a second telephone call, follow instructions in c through e below.

    3. Ask taxpayer to compare his/her records with the payer information listed on the CP 2501.

    4. If taxpayer agrees with proposal, complete a Form 4442, Inquiry Referral, and forward to AUR unit. Advise taxpayer that he/she will receive a CP 2000 within 30 days. The CP 2000 shows the amount taxpayer owes. Taxpayer should sign and return notice. Because this is a proposal, the notice does not show applicable tax, interest, or penalties.

    5. If taxpayer does not totally agree, he/she should respond as in IRM 21.3.1.4.58, Resolving or Referring Underreporter Cases, above.

21.3.1.4.63  (11-05-2008)
AUR Special Handling

  1. Do not refer Tentative Carrybacks (TCBs,) Restricted Interest Claims (RINTs), payment tracers, or entity change only requests to AUR. Handle as follows:

    If And Then
    Correspondence relates to two different tax periods, only one of which relates to Underreporter Program (URP). You can separate issues by tax period 1. Photocopy the correspondence related to the URP issues.
    2. Route as appropriate.
    3. Work other issue or tax period following normal adjustment procedures.

  2. For taxpayer inquiries regarding CP 2057See IRM 21.3.1.4.60, Underreporter Letters.

21.3.1.4.64  (10-01-2002)
BMF Notices

  1. Information in this section applies to Business Master File (BMF) notices and other business notices. Each subsection presents an overview of a specific notice, general procedures for working the notice, and a reference to the IRM containing detailed procedures.

21.3.1.4.65  (10-01-2009)
CP 081 REFUND & RSED within Six Months

  1. Generated when the RSED is within 6 months of expiration. Titled "We May Have a Refund for You" , this notice informs the taxpayer that:

    • a return has not been filed

    • the time to claim an overpayment/credit is about to expire, and

    • a return/claim must be filed to claim the overpayment before the RSED.

    Note:

    See IRM 25.12, Delinquent Return Refund Hold Program.

  2. See IRM 25.6.1.8.4, Processing Original Delinquent Returns.

21.3.1.4.66  (01-08-2008)
CP 101 Balance Due of $5 or More, Math Error

  1. Issued to notify taxpayer of an error on Form 940 and Form 940–EZ, Employer's Annual Federal Unemployment Tax (FUTA) Return, that resulted in a balance due. After researching IDRS, explain reason for math error. Follow actions in table in IRM 21.3.1.4.70, CP 112 Overpayment of $1 or More, Math Error.

21.3.1.4.67  (01-08-2008)
CP 102 Balance Due of $5 or More

  1. Issued to notify taxpayer of an error on Form 941, Employer's Quarterly Federal Tax Return, Form 941−SS , Employer's Quarterly Federal Tax Return American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands, Form 944, Employer's Annual Federal Tax Return, Form 943, Employer's Annual Tax Return for Agricultural Employees, or Form 945, Annual Return of Withheld Federal Income Tax that results in a balance due. For resolution, see table in IRM 21.3.1.4.70, CP 112 Overpayment of $1 or More, Math Error.

21.3.1.4.68  (10-01-2006)
CP 108 Invalid FTD-Error Delay Code

  1. Issued when Service Center Recognition Image Processing System (SCRIPS) processing does not find the type of tax and/or tax period on the deposit coupon or cannot be determined on an Electronic Federal Tax Payment System (EFTPS) payment.

  2. This notice advises taxpayer where the credit has been posted and provides a tear-off portion to be returned if payment was applied incorrectly. Refer to IRM 21.7.11.4.1, CP 108 - Error on FTD Coupon/EFTPS Payment, for resolution.

21.3.1.4.69  (10-01-2002)
CP 111 Overpayment of $1 or More, Math Error

  1. Issued to notify taxpayer of an error on the Forms 940 and 940–EZ, Employer's Annual Federal Unemployment Tax (FUTA) Return, resulting in a change in the amount of the refund. For resolution, see table in CP 112 below.

21.3.1.4.70  (10-01-2002)
CP 112 Overpayment of $1 or More, Math Error

  1. Issued to notify taxpayer of an error on Form 941, Form 941−SS, Form 944, Form 943, or Form 945, resulting in a change in the amount of the refund. For resolution, see table below.

    If And Then
    Taxpayer agrees with notice A refund is due 1. Advise taxpayer to correct his/her copy of return.
    2. Taxpayer will receive refund within six weeks. Warn of possible offset.
    Taxpayer agrees with notice A balance is due 1. Advise taxpayer to correct his/her copy of return.
    2. Request payment see IRM 5.19.1, Liability–Collection Balance Due
    Taxpayer indicates a payment was made Has not been credited to account 1. Research for missing payment.
    2. See IRM 21.5.8, Credit Transfers.
    Taxpayer does not agree Notice indicates a refund due 1. Ask taxpayer to send necessary documentation to Customer Service.
    2. If oral statement is sufficient, adjust account, as appropriate.
    3. If necessary, prevent excess credit from refunding.
    Taxpayer does not agree Notice indicates a balance due 1. Refer to IRM 21.7, Business Tax Returns and Non-Master File Accounts, for information on error conditions relating to BMF tax forms.
    2. Request payment of balance due.


21.3.1.4.71  (10-01-2005)
CP 130 Notice of Potential Exemption from Alternative Minimum Tax (AMT)

  1. Beginning January 1, 2003, this notice will generate when the taxpayer completes Form 4626, Alternative Minimum Tax - Corporations, and it appears the taxpayer is not liable for AMT.

  2. See IRM 21.7.4.4.4.7.3, CP 130 – Notice of Potential Exemption from Alternative Minimum Tax, for information on how to work this notice.

21.3.1.4.72  (10-01-2009)
CP 134B FTD/Estimated Payments Discrepancy Notice − Balance Due

  1. Notifies taxpayer that the amount of Federal Tax Deposits (FTDs) or estimated Tax payments credited differs from the amount reported resulting in a balance due.

  2. Notice generated on tax modules with a math error with math error notice codes 24, 26 or 39.

    If Then
    Taxpayer indicates credit was not given for a missing payment See IRM 21.5.7, Payment Tracers.
    Taxpayer has other information that resolves balance due Take appropriate action per IRM 21.7, Business Tax Returns and Non-Master File Accounts.
    Taxpayer agrees with notice 1. Advise taxpayer to correct his/her records.
    2. Request payment. See IRM 5.19.1, Balance Due.

21.3.1.4.73  (10-01-2009)
CP 134R FTD/Estimated Payments Discrepancy Notice − Refund

  1. Notifies taxpayer that the amount of Federal Tax Deposits (FTDs) or estimated Tax payments credited differs from the amount reported resulting in an overpayment.

  2. Notice generated on tax modules with a math error with math error notice codes 24, 26 or 39.

    If Then
    Taxpayer disagrees with notice and indicates excess payment(s) were intended for another period Initiate credit transfer to appropriate period. Refer to IRM 21.5.8, Credit Transfers.
    Taxpayer has other information that resolves the overpayment Take appropriate action per IRM 21.7, Business Tax Returns and Non-Master File Accounts.
    Taxpayer agrees with notice 1. Advise taxpayer to correct his/her records.
    2. Advise taxpayer to expect the refund within four to six weeks.

21.3.1.4.74  (10-01-2002)
CP 136 Notice of New Federal Tax Deposit Rules, Form 941

  1. The CP 136 is issued yearly to filers of Form 941 and Form 941−SS to advise employers of which deposit method to use for the upcoming calendar year if different than current deposit method.


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