21.3.4  Field Assistance (Cont. 2)

21.3.4.7 
Receipt of Payments

21.3.4.7.11  (02-28-2012)
Accepting Cash Payments in Taxpayer Assistance Centers with Courier Services

  1. General Information - This is a process whereby TACs will accept cash from taxpayers and a courier picks-up and deposits the funds directly into an IRS account at a local Treasury Government Authorized Bank. Deposits will be tracked using the Over The Counter Channel Application (OTCnet) and taxpayers receive credit for the payment through IDRS payment command code input. The OTCnet system will automate the over-the-counter (OTC) deposit reporting process and capture detailed accounting information at the point of deposit. Cash will be deposited in the Federal Reserve Bank within the 24 hour IRM requirement, eliminating numerous teller errors and allowing quicker application to the taxpayers account. Utilizing a courier service facilitates a safer work environment for employees.

  2. A Courier TAC is a TAC that is not co-located with a financial institution or other cash conversion facility.

    Note:

    These procedures only apply to TACs that have Courier Services.

21.3.4.7.11.1  (10-01-2009)
Courier Cash Transactions

  1. Field Assistance 809 Receipt Book Employees must follow the steps below when accepting cash in the TAC.

    1. Ensure the taxpayer has the exact amount of change for the payment. (Do Not Make Change)

    2. Complete Form 809, Receipt for Payment of Taxes as directed in IRM 21.3.4.7.2.2, Completing Form 809.

    3. Give Part 2 of Form 809 to the taxpayer. If an unauthorized third party makes the payment and the Form 809 discloses new information to he third party, then mail Part 2 of the Form 809 to the taxpayer's address of record.

    4. Secure cash payments in a locked metal security container, immediately after recording payments on Form 795-A, Remittance and Return Report as directed by IRM 21.3.4.7.3.1, Preparation of Form 795-A.

    5. Complete a separate Form 795-A for courier cash transactions.

21.3.4.7.11.2  (01-06-2011)
Creating the Trace ID Number and Documents for the Reviewer

  1. After the taxpayer has left, the 809 employee should either stamp or manually write the fourteen digit on parts 1, 3 and 4 of the Form 809 in the box marked Deposit Trace ID.

    The fourteen digit Trace ID Number is made up as follows:
    Numbers 1-2 SP Campus (Fresno, Kansas City or Austin)
    Numbers 3-4 Always 55 - Field Assistance
    Numbers 5-11 Deposit date in YYYYDDD format for Julian date, see IRM 3.11.10–4
    Numbers 12-14 Specific TAC ID number

    Note:

    The final six numbers (15-20) will be identified and placed on the 809 photocopies by the input person.

  2. At the end of the day, or first thing the following day, the 809 employee should:

    • Make photocopies of Form 809, part 3.

    • Complete Form 2679, Teller's Daily Balance and Reconciliation.

    • Give reviewer package, which includes:

      3 copies of Form 795-A
      3 copies of Form 2679
      Photocopies of all Form 809
      Cash

    • Count cash with reviewer and once agreed upon, sign off on Form 2679, acknowledging the amount of cash received.

21.3.4.7.11.3  (10-01-2009)
Preparing Form 2679, Teller's Daily Balance and Reconciliation

  1. The following instructions should be used in completing the Form 2679:

    • Prepare Form 2679 in triplicate for each cash deposit

    • Box 1 (Office Location): Name of TAC

    • Box 2 (Teller): Enter your name

    • Box 3 (Date): Enter date of receipt

    • Box 4 (Cash Collections): List the total cash receipts under the correct Denomination, then enter the total coins and total currency for each column

    • Box 5 (Total coins and currency): Enter grand total from Box 4

    • Box 6 through Box 11: Leave Blank

    • Box 12 (Total for Deposit): Enter the amount from Box 5

    • Box 13 (Signature of Balancer): Must be signed by the Reviewer

    • Box 14 (Signature of Teller): Must be signed by the 809 employee

    • Box 15 through 22 of page 2: Does not need to be completed

    Note:

    The original copy of Form 2679 should remain with the retention file, duplicate copy to the 809 employee (Teller) and triplicate copy to the Reviewer (Balancer)

    .

21.3.4.7.11.4  (06-11-2013)
Reviewer Procedures for Accepting Cash with Courier Service

  1. Upon receiving cash and documents from the 809 employee, the Reviewer should complete the bank deposit slip, immediately place the bank deposit slip and cash in confidential envelope, place confidential envelope in a Disposable Tamper Evident Bank Deposit Bag, place in locking container, and return deposit bag to the safe.

    Note:

    If the bank deposit slip is not completed and included in the deposit bag for the courier, this could cause a delay with the bank confirming the deposit on OTCnet.

  2. Reviewer and 809 receipt employee each keep a copy of signed Form 2679 and one copy of Form 2679 is for the retention file.

  3. Once review is complete, the reviewer will provide copies of the Form 795-A and Form 809 to person inputting payment-related command codes, originals remain with reviewer (Form 795-A and Form 809 can be faxed to another employee in remote location for input if necessary). Since Personally Identifiable Information (PII) is on the 809 receipt, the employee must ensure that safeguards for faxing sensitive information contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information are being followed.

  4. Once the input person has input all cash payments into IDRS for a day, they should forward a copy of the following IDRS responses to the reviewer notifying them that this has been completed:

    • CC PYBAL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Payments.pdf) and

    • CC TXCTL (Seehttp://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Tax_Class_Totals.pdf)

  5. The input person will also return the copies of the Form 809 to the 809 employee, identifying the remaining six digits of the Trace ID numbers. Once the 809 employee places the remaining six numbers of the Trace ID number on Parts 1, 3 and 4 of the Form 809, he/she will give the Reviewer the original Parts 1 and 3 of the Form 809 to associate with the package.

  6. Reviewer will reconcile IDRS prints and Form 795s to ensure cash totals match.

  7. Reviewer will input total deposit into OTCnet using information on TXCTL print and print out deposit slip.

  8. If OTCnet is down, and deposit ticket cannot be completed via OTCnet, follow IRM 21.3.4.7.13.3, OTCnet Contingency Plan.

  9. Reviewer provides deposit slip and IDRS prints to OTCnet Approver (can be 809 book holders).

  10. OTCnet Approver validates that the response to PYBAL and TXCTL equals deposit ticket, approves deposit on OTCnet, and prints copy of deposit slip and gives to reviewer to associate with courier package.

  11. Reviewer associates copy of deposit slip from OTCnet and puts copy with cash in confidential envelope and Disposable Tamper Evident Bank Deposit Bag for courier. Reviewer prepares and signs Form 10160, Receipt for Transport of IRS Deposit. Form 10160 is attached to the OUTSIDE of the deposit bag. See below for preparation of Form 10160.

  12. Reviewer must complete Form 10160, for each courier pickup and additionally, ensure the following information is contained on each Form 10160:

    • The name and signature of the designated IRS Field Assistance representative or designee who released the deposit to the courier service employee.

    • The time the deposit was released to the courier service employee.

    • The date the deposit was released to the courier service employee.

    • The number of Disposable Tamper Evident Bank Deposit Bags released to the courier service employee. This number should be entered in "No. of Boxes" .

    • In the "Description" column the employee should write the serial number of the disposable deposit bag.

    • The "Remarks" column should include the dollar amount of the deposit.

    • Tear the serial number from the top of the disposable bag and staple to copy of the Form 10160 for the retention file.

    • The name and signature of the courier service employee who received the deposit.

    • Attach the Disposable Tamper Evident Bag Receipt to the bottom of the file copy of the Form 10160.

    • Must maintain one carbon copy of Form 10160 with the courier service employees signature, date, and time they took possession of the deposit.

    • The courier must return, by the next business day, the original completed Form 10160 with bank representative's signature, date, and time deposit was received by the depository.

    • It is critical to reconcile each day's Form 10160 to ensure you are receiving dedicated service (e.g., the time between your release to the courier and the release to the bank is not in excess). If discrepancies are found, immediately notify the designated Submission Processing Campus Operations Chief with responsibility for deposits.

    • If Form 10160 is not returned from the bank as required immediately notify the courier service’s help desk.

      Note:

      Do not attempt to resolve courier service issues (CSI), including those relative to the Form 10160, with the courier. Use the courier service's help desk to report CSIs; for Loomis the number is 1-877-877-0560. Be sure to get the ticket number and time frame for handling. We also recommend that each GM get to know their Local Loomis Branch Manager’s name and phone number so that when CSIs occur they can be raised directly to them. If Loomis fails to correct in timeframe given, the issue should be elevated to the Area Remittance Analyst for handling. The Area will refer to the HQ Analyst for support as needed providing the help desk ticket number, or the name, phone number and response of the branch manager contacted.

    • When Form 10160 is not returned and you have taken the appropriate actions, (called help desk, recorded ticket number, and noted the response time frame), there is no further action for you to take with Loomis. At this point you take action to ensure that the deposit was made:
      Check OTCnet (after 2 business days) to determine if deposit was confirmed.
      If deposit was confirmed, your Form 10160 issue for that particular day is closed. Document issue log with details close issue.
      If the deposit has not posted, contact the HQ Analyst immediately with the facts and the results of your above findings.

    • Date stamp the reverse side of each Form 10160 with the date the form was received from the bank.

    • Must retain for 3 years from date of deposit of Form 10160.

  13. The same day the courier picks up the deposit, the Reviewer (or designee) associates the following documents and sends to the Receipt and Control Unit (Teller) at the campus:

    • Form 795-A

    • Form 809 (parts 1 and 3)


    The Reviewer will also forward the following items to Accounting:

    • IDRS prints from response page to CC PYBAL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Payments.pdf), and CC TXCTL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Tax_Class_Totals.pdf),

    • Copy of Approved Deposit Slip from OTCnet (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Confirmed_Deposit.pdf)

    • View Submitted Deposit (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Submitted_Deposit.pdf) listing payments by Tax Class from OTCnet

    • Statement of Loss, Shortage or Overage, if applicable.


    Note:

    Although the documents going to Receipt and Control and Accounting are in separate envelopes, they can be sent in the same UPS package.

  14. The following documents must be retained for three years from the date the deposit was received by the bank:

    • Form 795

    • Photocopy of the 809 receipt with complete Trace ID Number annotated

    • Original Form 2679

    • Original Form 10160 received from the bank

    • OTCnet Deposit Slip

    • Response to PYBAL and TXCTL prints

    • Copy of Confirmed OTCnet Deposit Slip (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Confirmed_Deposit.pdf)

  15. If a "CONFIRMED" OTCnet Deposit Slip does not show on OTCnet within 2 business days from the OTCnet initial input, the TAC office should submit an email to the Area Remittance Analyst. The Area Remittance Analyst will contact the Headquarters Courier Project Manager for direct contact to the bank for status update.

21.3.4.7.11.5  (04-01-2011)
Segregation of Duties

  1. To comply with the requirements associated with the segregation of duties and to implement the remittance/courier process, 3 separate employees are required to complete the cash transaction.

    • 809 receipt book holder (RSTRK command code required)

    • Reviewer /OTCnet Inputter

    • IDRS Inputter

    • OTCnet Approval (can be same as 809 receipt book holder)

  2. The 809 receipt book holder should not input payments on IDRS nor input to OTCnet. The manager should ensure that an employee with an assigned Form 809 book has only research command codes in his/her Integrated Data Retrieval System (IDRS) profile. Refer to IRM 10.8.34, Integrated Data Retrieval System (IDRS) Security Handbook for a list of sensitive command codes.

  3. Command code "PAYMT" is used by the IDRS Inputter and is considered sensitive. The profile of the IDRS Inputter should be restricted from using adjustment command codes while they are performing this duty. The manager should set up a system to monitor the individual profile to ensure the employee doesn't have any sensitive or adjustment related command codes in their profile. If the manager does choose to use RSTRK, they will need to use cc BYPAS to add cc PAYMT into the profile. Command code BYPAS is used to activate or remove a temporary bypass to a restriction in an employee’s profile. If a manager uses cc RSTRK in the profile of the employee inputting the payment related command codes, they won't be able to add cc PAYMT, because it is considered a sensitive command code.

  4. A command code is considered "sensitive" if it can be used to:

    • Adjust an account balance

    • Change the status of a tax module or account

    • Affect the tax liability

21.3.4.7.11.6  (04-01-2011)
Loss Or Shortage for Courier Payments

  1. The TAC manager is required to ensure all monies collected are balanced daily. The TAC is in balance if exact dollar totals of all cash payments received and credited on IDRS for that day equal the exact dollar total of the actual deposit on OTCnet for release. Out of balance means there is either an overage or a shortage. If the dollar total credited to taxpayers is more than the actual money deposit, you have a shortage. If the dollar total credited to taxpayers is less than the actual money deposit, you have an overage. All out of balance conditions must be identified and explained by the TAC. Include the statement of explanation with the Accounting package to the Submission Processing Campus. If there is a cash shortage or overage, completion of Form 2424, Account Adjustment Voucher signed by the manager is required with the accounting package. In addition, advise Campus Accounting to either debit or credit the account on IDRS. All losses and cash shortages must be reported to Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations and the campus Remittance Security Coordinator. The employee and a manager must prepare detailed reports that are outlined in IRM 3.0.167.5.2, Receipt Loss Reporting Requirements. Managers, upon receiving notification of a revenue receipt shortage, must immediately contact their supervisor, TIGTA, and the Submission Processing Remittance Security Coordinator. The names and telephone numbers of the current Remittance Security Coordinators (RSC) can be found on the Submission Processing website under "Remittance Security Coordinator Information" .

    Example:

    A TAC issued Form 809 official receipt to a taxpayer for $200 cash. The taxpayer has Part 2 of Form 809. At the end of the day, the employee is short by $40. Only $160 cash is sent to the bank. The deposit preparer counts and confirms there is only $160 and prepares the deposit for the exact amount of cash. There is a cash shortage of $40. Form 809 Part 1 goes to the IDRS inputter to credit the taxpayer $200, which matches the Form 809 receipt. OTCnet deposit is prepared for $160 to reflect the exact amount of cash that is going to the bank. Form 2424 is signed by the manager, and provided with the Accounting Package, along with an explanation. Call the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1-800-366-4484 and report the potential loss/ theft/embezzlement to TIGTA. All other IRM 3.0.167, Losses and Shortages reporting requirements must be adhered to surrounding the cash shortage.

  2. If contacted by Campus Accounting that an out of balance condition exists, and was overlooked, a completed Form 2424 is required within 24 hours. Email the digitally signed Form 2424 to the Campus Accounting contact.

21.3.4.7.12  (02-01-2010)
IDRS Input Procedures for Courier Cash Payments

  1. Remittance input procedures provide for processing remittances in blocks of 20 or fewer items. Procedures are also provided for correcting erroneous input, posting items to the next day's deposit, and actions necessary when a terminal or the system experiences a breakdown.

21.3.4.7.12.1  (11-01-2011)
Command Codes Used

  1. Command Codes EXTCL, SEQNC, STBLK, PAYMT, PYBAL, TXCTL, CRBLK, and VARIA are used to input cash payments. The same terminal operator must complete all the remittance processing actions for a block of payments (including CC CRBLK) on same computer. These command codes are considered IDRS sensitive, therefore the individual who inputs these command codes will be restricted from using adjustment command codes per http://core.publish.no.irs.gov/irm/p10/ouopdf/irm10-008-034--2011-10-14--ouo.pdf

  2. Command Code CMODE enables users to access and update taxpayer records on IDRS where the Teller Unit is located. Although CC CMODE is a non-profiled command code and does not have to be put in an IDRS user’s profile, the user must be authorized to access another campus’ database. You must complete Online 5081 to gain access to CC CMODE. For a list of Campus acronyms, see http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/cmode.htm

    Example:

    If there is no IDRS input person available in your TAC, find someone in another TAC to post your payment for you. They would have to use CC CMODE for your Submission Processing Campus to post your payment.

    Example:

    Their IDRS campus location is Andover, but you send your payments to Fresno. They would have to use CC CMODEFR and Page Up to access the Fresno Campus’ database to post your cash payment.

    Note:

    When using CC CMODE, make sure the first 2 digits of your Trace ID number match the office you CMODE to.

21.3.4.7.12.2  (10-01-2013)
Input of Applicable Command Codes to Process Cash Payments

  1. Input the following Payment Related Command Codes on IDRS Payments:

    1. Input CC ETXCL.

    2. Input Julian date (Deposit Date) and Sequence Number (start with 000) after SEQNC is on screen.

    3. After STBLK appears on screen, input number of payments in block and total payments for that block.

      Note:

      The number of payments in the block is determined by the total number of payments received in the TAC for a particular day, not the individual 795-A.

    4. After PAYMT appears on screen, input all payments for that block.

      Note:

      When inputting the appropriate transaction code, make sure you input the date the taxpayer actually made the payment.

    5. If block count and payment amounts match what was input, PYBAL will appear on screen.

    6. Press Page Up and PAYMENTS will appear.

    7. Print 2 copies of this screen for reviewer.

    8. After all payments have been input for the day, input TXCTL and print out 2 pages for reviewer.

  2. Once the input person has processed all cash payments into IDRS for a day, he/she will forward a copy of IDRS responses from PYBAL and TXCTL to the reviewer, notifying them that this has been completed.

    Note:

    If there are more than 20 payments, this process will have to be repeated for the remaining payments.

21.3.4.7.12.3  (04-01-2011)
Posting Payments

  1. User Fees - Treat all User Fees as if the module does not exist. TAC Offices are not to put any money on the Deposit Ticket (OTCnet) to the User Fee appropriation because applying it to the MasterFile causes problems for journalization and balancing in Accounting.

  2. Amended Payments - Secondary transaction codes do not have to be monitored in the case of 1040X’s and 941X’s and other TC 570 transactions payments you want to hold the credit.

  3. If there is any doubt as to whether the module is on IDRS, error on the side that the module is not on IDRS and process accordingly.

  4. If errors are made when inputting the above IDRS command codes, use either CC CRBLK or CC VARIA to correct. However these command codes cannot be used if CC PYBAL has been successful. This can cause duplication of errors and accounting variances.

  5. If your IDRS terminal goes down, see IRM 2.4.15.1.4, Recovery of Data in Event of Breakdown. If you are inputting a payment and the Designated Payment Code (DPC) is not present on the 809 receipt, research the payment source using all available data sources and if no information is available use DPC " 00" .

21.3.4.7.12.4  (10-01-2010)
Correcting Input of Duplicate Payments and Errors

  1. Crediting taxpayer accounts for cash payments received must be handled with the same care and precision as cash handling. Credit taxpayer accounts for the exact amount of cash received from the taxpayer. If input errors occur during IDRS input, tear up the block and start over.

  2. If you are notified that your previous input of payments were duplicated or you have made an input error resulting in an out of balance condition, you must complete Form 2424, Account Adjustment Voucher within 24 hours after notification. Send Form 2424 to the appropriate accounting campus for your area. The form is a fillable pdf form; however the manager must approve each copy with a digital signature. The form is then forwarded via secure email to the Accounting official that contacted the TAC. See Instructions for Form 2424 in IRM 21.7.7.5.4.1.1.2, Form 2424 Instructions.

  3. Make sure you input the correct information into IDRS. If the response to CC PYBAL occurs successfully (CC PAYMENTS), you cannot make any corrections to IDRS with CC CRBLK or CC VARIA. Any errors should be recorded on AMS for that taxpayer.

21.3.4.7.12.5  (10-01-2009)
Notification of Dropped Files

  1. If you are notified from Campus Accounting that payments input have been placed in a dropped file or did not post properly due to system error, you must complete the following steps:

    1. Pull TAC retention file for designated payment

    2. Complete and submit an approved Form 6759, Request for Taxpayer Data

    3. Get digital signature from the manager

    4. Route Form 6759 to point of contact for your Campus

    5. Re-input Payment

21.3.4.7.13  (04-01-2011)
Over The Counter Channel Application (OTCnet)

  1. The Over The Counter Channel Application (OTCnet) is a secure web-based application, developed with the Federal Reserve Bank of St. Louis that:

    1. Automates the over the counter (OTC) deposit reporting process including the preparation of deposit.

    2. Captures summary accounting information at the point of deposit.

    3. Facilitates the classification of Treasury collections on a daily basis.

  2. OTCnet supports the Office of Management and Budget’s direction to provide more timely classification of accounting data and provide financial institutions that service federal program agencies the ability to:

    • Confirm and rejects deposits

    • Create, credit and debit adjustments

  3. Taxpayer Assistance Centers use OTCnet to create deposit tickets, employees are designated as Deposit Preparers and Deposit Approvers. See the roles and responsibilities of these employees next.

21.3.4.7.13.1  (04-01-2011)
OTCnet Users Roles and Responsibilities

  1. Local Security Administrator (LSA)/ Primary Local Security Administrator (PLSA)

    • Create Employees as Users needing access to OTCnet

    • Create, Modify and Delete Permissions

    • Change User Status and Re-Activate Users

    • Reset Passwords

    • View Security Reports

    • Collect and maintain the signed Rules of Behavior prior to creating any user

    • Recertify Users annually in your organization

  2. Deposit Preparer

    • Complete and sign the Certification Form Authorization and Rules of Behavior before being granted access to OTCnet

    • Create deposits and save as a draft or save for approval

    • View/search deposits

    • View Business reports

    • Research Adjustments

    • Review the deposit information for errors and select "previous" to return to the input screen to make corrections

    • Prepares Form 10160, Receipt for Transport of IRS Deposit.

  3. Deposit Approver

    • View Deposits from the Manage Deposit Menu

    • Search/Select the deposit you would like to approve

    • Review the deposit information for errors

    • Submit deposit to the Financial Institution

    • Reject deposits ONLY prior to submission

    • View Business reports

    Note:

    Users may be assigned to OTCnet as both a Deposit Preparer and Approver; however you cannot approve a deposit that you prepared.

  4. Viewer

    • View deposits

    • Search deposits

    • Search adjustments

    • View reports

    Note:

    Viewers cannot manipulate any data in the OTCnet system.

21.3.4.7.13.2  (04-01-2011)
Getting Access to OTCnet

  1. In order to get access to OTCnet, you must complete the following forms to your Local Security Administrator (LSA)

    • Authorization Form

    • Certification Form

    • Rules of Behavior

  2. In addition, you must also complete the online training on OTCnet

21.3.4.7.13.3  (11-08-2012)
OTCnet Contingency Plan

  1. If OTCnet experiences an outage or if the TAC is unable to access OTCnet due to local problems, the deposit WILL NOT be created in OTCnet. TAC Offices will contact the Help Desk to determine what the problem is and the expected time the system will be unavailable. If the system will not be available to complete the process, contact your area Remittance Analyst to advise of system failure. Use the following If…Then Chart to determine the action to be taken if OTCnet is unavailable. The action to be taken will depend upon your status in the deposit process. Keep available a copy of the Contingency Matrix at: http://www.fms.treas.gov/otcnet/index.html

    Note:

    All offices need to have a backup at another location to assist with this type situation.

    If... Then...
    OTCnet is not available due to an outage (i.e., the problem is internal to the OTCnet system). Users will be notified thru email when the OTCnet system is down. Immediately contact your Area Remittance Analyst to inform them of the system failure. Secure the deposit in the safe. Input the deposit into OTCnet on the next business day as a separate deposit and annotate that OTCnet was down and give the date the collections are for mm/dd/yyyy. Do not complete Form 2424.
    OTCnet cannot be accessed due to local problems at the TAC (i.e., in-house server or Internet is not available). Deposit ticket and approval needs to be secured from a backup TAC. If no backup is available, immediately contact your Area Remittance Analyst to advise them of the system failure. Secure the deposit in the safe. Input the deposit into OTCnet on the next business day as a separate deposit and annotate that OTCnet was down and give the date the collections are for mm/dd/yyyy. Do not complete Form 2424.
    An OTCnet deposit was begun but not yet saved as a draft and the OTCnet system goes down. The OTCnet deposit will not be found in the system upon restoration of normal functionality. No further action is needed in OTCnet. Immediately contact your Area Remittance Analyst to advise them of the system failure. Secure the deposit in the safe. Input the deposit into OTCnet on the next business day as a separate deposit and annotate that OTCnet was down and give the date the collections are for mm/dd/yyyy. Do not completed Form 2424.
    An OTCnet deposit was saved as a draft in OTCnet and the OTCnet system goes down. The original OTCnet deposit will be in the system upon restoration of normal functionality. Immediately contact your Area Remittance Analyst to advise them of the system failure. Secure the deposit in the safe. Once the OTCnet system is restored, the Deposit Preparer must delete the saved draft of the OTCnet deposit from OTCnet. Create a separate deposit for that day.
    An OTCnet deposit is awaiting approval (from the Deposit Approver) in OTCnet and the OTCnet system goes down. The OTCnet deposit was saved awaiting approval and should be in the system upon restoration of normal functionality. Immediately contact your Area Remittance Analyst to advise them of the system failure. Secure the deposit in the safe. Once the OTCnet system is restored, the Deposit Approver must reject the deposit awaiting approval and the Deposit Preparer must then delete the deposit from OTCnet. Create a separate deposit and annotate that OTCnet was down and give the date the collections are for mm/dd/yyyy.

21.3.4.7.13.4  (10-01-2011)
Courier Issue Log

  1. The Courier Issue Log is located on the U-Drive and must be updated daily. The following information must be recorded on the http://win.web.irs.gov/field/fadocs/IRM_Exhibit_Courier_Issue_Log.xls.)

    1. Area

    2. Date - The payment receipt date

    3. Cash for deposit? (Yes/No response required)

    4. Courier arrived between 9:30 am - 4:30 pm or within window _____? (Yes/No response required). If "No" , call Help Desk; document action taken.

      Note:

      If you cannot validate the courier's ID (match the courier to the color photo ID provided by LOOMIS) do not release receipts. Call help desk and include on issue log.

    5. Courier Validated? (Yes/No response required). If "No" , call Help Desk; document action taken.

    6. Prior Day's Form 10160 Returned? (Yes/No response required). If "No" , call Help Desk; document action taken.

    7. Confirm Deposit Date - Date deposit confirmed in OTCnet. The IRM requires this to be checked 2 days after deposit was input.

    8. Courier Time In TAC (In minutes) - Total time Courier spends in TAC.

      Note:

      We are charged $4 for each minute over 5 minutes that the courier is in the TAC. Please be mindful of the time.

    9. Amount of Deposit - Dollar amount of deposit; show $0.00 for no receipts.

    10. Overtime Cost (For HQ Use Only) - HQ Analyst will compute @ $4 per minute for each minute over the premise time (5 minutes).

    11. Purchased Deposit Bags? (Yes/No response required).

    12. Quantity Purchased - Number of bags purchased.

    13. Cost of bags (For HQ Use Only) - HQ Analyst will compute @ $20 per 100 bags

    14. Issue(s) - Provide a brief explanation of the incidents or issues (i.e., not in uniform, no ID badge with the company logo, only one courier employee, courier failed to arrive, courier arrived late, 10160 not returned, etc.)

    15. Location - TAC address

    16. Date Issue Closed

    17. Resolution - a brief note indicating the action taken by the TAC (i.e., deposit not released, contingency plan implemented, contacted courier company officials, deposited next day, contacted HQ, etc.)

21.3.4.7.13.5  (11-27-2012)
Procedures for Accepting Cash with Over-the-Counter (OTC) Depositing

  1. Upon receiving cash and documents from the 809 employee, the Reviewer should complete the bank deposit slip, immediately place the bank deposit slip and cash in confidential envelope, place in locking container, and return to the safe. If the bank deposit slip is not completed and included in the deposit bag for the courier, this could cause a delay with the bank confirming the deposit on OTCnet.

  2. Reviewer and 809 receipt employee each keep a copy of signed Form 2679 and one copy of Form 2679 is for the retention file.

  3. Once review is complete, the reviewer will provide copies of the Form 795-A, and Form 809 to person inputting payment-related command codes, originals remain with reviewer (Form 795-A and Form 809 can be faxed to another employee in remote location for input if necessary). Since Personally Identifiable information is on the 809 receipt, the employee must ensure that safeguards for faxing sensitive information contained in IRM 11.3.1.10, Records Disposition For Disclosure are being followed.

  4. Once the input person has input all cash payments into IDRS for a day, they should forward a copy of IDRS responses from CC PYBAL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Payments.pdf), and CC TXCTL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Tax_Class_Totals.pdf), to the reviewer notifying them that this has been completed.

  5. The input person will also return the copies of the Form 809 to the 809 employee, identifying the remaining six digits of the Trace ID numbers. Once the 809 employee places the remaining six numbers of the Trace ID number on Parts 1, 3 and 4 of the Form 809, he/she will give the Reviewer the original Parts 1 and 3 of the Form 809 to associate with the package.

  6. Reviewer will reconcile IDRS prints and 795s to ensure cash totals match.

  7. Reviewer will input total deposit into OTCnet using information on TXCTL print and print out deposit slip.

  8. If OTCnet is down, and deposit ticket cannot be completed via OTCnet, follow IRM 21.3.4.7.13.3, OTCnet Contingency Plan.

  9. Reviewer provides deposit slip and IDRS prints to OTCnet Approver (can be 809 book holders).

  10. OTCnet approver validates that the response to PYBAL and TXCTL equals deposit ticket, approves deposit on OTCnet, and prints copy of deposit slip and gives to reviewer to associate with deposit package.

  11. Reviewer associates copy of bank deposit slip from OTCnet and puts copy with cash in confidential envelope.

  12. The same day the deposit is made, over the counter to the co-located TGA Bank, the Reviewer (or designee) must ensure they receive the bank deposit slip from the bank to validate the amount of the deposit and prepare the following documents to be mailed to Receipt and Control Unit (Teller) at the campus:

    • Form 795-A

    • Form 809 (parts 1 and 3)

    The Reviewer will also forward the following items to Accounting:

    • IDRS prints from response page to CC PYBAL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Payments.pdf), and CC TXCTL (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_Tax_Class_Totals.pdf),

    • Copy of Approved Deposit Slip from OTCnet (See http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Confirmed_Deposit.pdf),

    • http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Submitted_Deposit.pdf) listing payments by Tax Class from OTCnet,

    • Statement of Loss, Shortage or Overage, if applicable.

      Note:

      Although the documents going to Receipt and Control and Accounting are in separate envelopes, they can be sent in the same UPS package.

  13. The Reviewer (or designee) will check OTCnet 2 business days from the OTCnet initial input, to determine if deposit has been confirmed:

    • If a "CONFIRMED" OTCnet Deposit Slip does not show on OTCnet the TAC office should submit an email to the Area Remittance Analyst.

    • The Area Remittance Analyst will contact the Depository’s Point of Contact to advise and determine status of the unconfirmed deposit.

    • If the Area Remittance Analyst contact with the bank’s POC fails to resolve the unconfirmed deposit condition and the problem persist refer issue to the Headquarters Courier Project Manager for handling.

  14. The following documents must be retained for three years from the date the deposit was received by the bank:

    • Form 795

    • Photocopy of the 809 receipt with Trace ID Number annotated

    • Original Form 2679

    • The bank’s deposit receipt

    • Response to PYBAL and TXCTL prints

    • http://win.stg.web.irs.gov/field/fadocs/IRM_Exhibit_View_Confirmed_Deposit.pdf)

21.3.4.7.14  (10-01-2011)
Payments Received with Form 4506

  1. Any Form 4506 received with payment should be date stamped and forwarded to the appropriate RAIVS unit via Form 3210, Document Transmittal. Refer to IRM 3.5.20-3, RAIVS Contacts. Form 4506 photocopy fees will be processed by the RAIVS Unit, not in TACs with RS-PCC. See Form 4506 for the correct address.

  2. Cash cannot be accepted as payment for the photocopy fees.

  3. Non-cash payments can be accepted for the photocopy fees. If the taxpayer requests acknowledgement of the payment, employees may use a copy of the payment stamped with a Proof of Delivery stamp.

    • Do not complete Form 3244 or any other posting documents. Attach the check or money order to the Form 4506.

    • Prepare Form 3210 including taxpayer’s name, TIN, amount of payment and tracking information.

21.3.4.8  (10-11-2012)
Receipt of Tax Returns

  1. TAC employees may receive tax returns in the TAC office from individual taxpayers. Field Assistance does not accept tax returns from Tax Return Preparers.

  2. Tax Return Preparers include individuals or businesses who prepare tax returns on behalf of another individual or business, regardless of whether they are compensated or not.

  3. Field Assistance employees will educate the Tax Return Preparers by:

    1. Articulating the new IRS Return Acceptance Policy to Tax Return Preparers, Practitioners, Accountants, Acceptance Agents, and Runners.

    2. Ask them to mail in the tax returns themselves or file electronically (if this option is available).

    3. Encourage Tax Return Preparers to become authorized IRS e-file providers and file individual and business returns electronically.

  4. Field Assistance Exceptions to the Return Acceptance Policy:

    1. Returns received from taxpayers (non-preparers).

    2. Tax Returns received with remittance.

      • FA employees will accept tax returns with remittances. Remittances must be processed within the 24 hours deposit standard.

      • FA employees will provide the Tax Return Preparer information on making payments on behalf of their clients using EFTPS and the electronic filing options.

    3. Form 4868.

    4. Any individual or business extension forms can be accepted at any time, not limited to the due date only.

    5. Form 4506-T.

    6. Imminent Refund Statute Expiration Date (RSED).

    7. Past year returns (nonfilers), and

    8. Routine returns when the preparer has traveled a significant distance or waited a long time.

    9. Managers have full authority to accept returns from preparers, on a case by case basis in their individual TACs, when it is in the best interest of the Service or taxpayer hardship.

    10. Tax Return Preparers are still required to provide a transmittal list or copies of their clients returns if they are requesting "proof of filing" per IRM 21.3.4.8.2, Receipts For Tax Returns.

    11. For Form 2290, see IRM 21.3.4.17.1(3), TAC Employees’ Responsibilities for Form 2290, for information to provide to 2290 Tax Preparers.

    Note:

    The policy of not accepting tax returns from Tax Return Preparers is not intended to limit assistance to taxpayers or their authorized representatives, particularly in situations where the taxpayer is facing financial harm or undue hardship (e.g., delinquent returns or to start or stop an installment agreement). The intent is, primarily, to stop the practice of solely dropping off returns when they can be mailed directly to the IRS processing campus. TACs will accept returns with imminent statute implications, with remittances or other situations where it's in the best interest of the taxpayer and the Service to accept them.

21.3.4.8.1  (10-01-2013)
Date Stamping Tax Returns

  1. TAC employees must stamp all tax returns secured with an official IRS "Received" or "Received with Remittance" date stamp. Exceptions to this requirement are the timely filing of the following returns unless received with remittance:

    • Calendar year Form 1040, Form 1040A, and Form 1040EZ.

    • Form 940, Form 941 and Form 943.

    See IRM 3.10.72.6, IRS Received Date for additional information.

  2. The "Received" stamp imprint should appear as close as possible to the center of page 1 of the return without covering taxpayer information.

  3. All Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return and Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns when received, must be stamped with an official IRS received date stamp and transmitted via Form 3210 to the appropriate Submission Processing Campus. If remittances are attached then the forms must be transmitted via Form 795-A, Remittance and Return Report.

  4. All official IRS stamps should be stored in a locked container when not in use.

  5. Mail tax returns without a remittance and returns whose payments have been processed using RS-PCC on a completed Form 3210, Document Transmittal, refer to IRM 21.3.4.8.4. For returns received with Form W-7 package, refer to IRM 21.3.4.19.5.

    Note:

    Tax returns received with a remittance must be transmitted on a Form 795-A.

  6. Returns must be shipped via UPS. Shipping by UPS ground is recommended.

  7. Any tax return kept overnight in the TAC must be stored in a locked container.

  8. The designated Submission Processing Campus for the processing of paper returns can be found in IRM 21.3.4.8.4(5).

  9. Log the returns in the Non-Remittance Follow-Up Review log.

21.3.4.8.2  (10-01-2013)
Receipts For Tax Returns

  1. A stamped copy of the front page of the tax return serves as proof of filing. If the taxpayer did not bring a copy of the return, photocopy the front page of the return for the taxpayer. Do not stamp any tax returns completed in pencil.

  2. Do not stamp a "duplicate" tax return. Advise the taxpayer that they have to wait for processing. If the return is not processed after eight weeks, accept the duplicate tax return and notate in red "duplicate" on top of the tax return.

  3. See IRM 21.3.4.8, Receipt of Tax Returns, for returns received from tax return preparers.

  4. Practitioners are required to provide copies of their client's returns or a transmittal list to be stamped as proof of filing. Practitioners may request "receipted" copies for a large number of their clients' returns. If you cannot provide this service while the practitioner is in the office, inform him/her you will forward the stamped copies or transmittal list as soon as it is practical. Send the copies to the taxpayer's address listed on the return or the office of the paid preparer.

21.3.4.8.3  (10-01-2013)
Receipt of Delinquent Returns

  1. When receiving a delinquent return, verify that the return was not posted on IDRS. If the return is not posted, correctly code the secured return for processing and input the satisfying transaction codes on the Integrated Data Retrieval System (IDRS).

  2. Advise the taxpayer if they were due a refund, generally they must file within three years from the date the return was due (including extensions) to get that refund.

    Note:

    All delinquent returns should be coded with the correct closing code by annotating the closing code in red in the upper left margin of the return. Only when there is an open TDI, will the FA employee input all satisfying transactions through Account Management Services (AMS) on IDRS or request the input by preparing an in-house referral. See Exhibit 21.3.4-13 for Field Assistance Closing Codes - Delinquent Returns.

  3. See IRM 5.19.2.5, Return Delinquency Procedures, for procedures regarding late filed tax returns and closing tax delinquency investigations (TDIs).

  4. Research IDRS to determine the following:

    1. If the account is in status 22, research the Automated Collection System (ACS) history for additional required actions.

      Note:

      All actions taken must be entered on AMS. Use AMS to input the satisfying transaction. If the employee does not have adjustment authority, prepare an in-house referral using Form e-4442.

    2. If the account is assigned on IDRS to another employee, route the returns to the appropriate employee.

    3. If the account is in status 26, ASGNI 8000, and the return is received without remittance, refer to the Automated Substitute for Return (ASFR) Unit, instead of routing for pipeline processing. See http://serp.enterprise.irs.gov/databases/irm.dr/current/4.dr/4.13.dr/4.13.7.dr/4.13.7-1.htm.

    4. If the account is in TDI status 03, use AMS to enter the appropriate FA closing code. Also write the correct TC 59X closing code in red in the upper left margin of page one of the tax return. See Exhibit 21.3.4-13, Field Assistance Closing Codes - Delinquent Returns.

      Note:

      If the employee does not have adjustment authority, prepare an in-house Form e-4442 referral per IRM 21.3.4.3.6.3.3, In-Scope Account Referrals.

    5. If the account is not present on IDRS, date stamp as appropriate and write the correct FA TC 59X closing code in red in the upper left margin of page one of the tax return. See Exhibit 21.3.4-13 Field Assistance Closing Codes - Delinquent Returns.

    6. If joint returns, research the secondary spouse's TIN to determine if a delinquency is present (Status 02 or 03), or a return has posted, then follow the procedures in IRM 5.19.2.5.6.1.2, IMF - TIN and Entity Problem, Taxpayer Filed a Joint Return.

    Note:

    IRM 5.19.2.5.4, IMF Return Delinquency Responses and Inquiries procedures should be followed with the exception that FA employees will use FA closing codes and use AMS or in-house referral procedures for input of correct closing codes.

21.3.4.8.4  (10-01-2013)
Reviewing and Shipping Form 3210 for Returns without Payments and Returns Received with Payments Processed using RS-PCC (except Form W-7)

  1. Returns without payments and Returns whose payments have been processed using RS-PCC will be routed to Submission Processing campus each day via Form 3210. Refer to IRM 21.1.7-2, Submission Processing Stop Numbers for Routing Non-Remit Documents for the appropriate address and stop number.

    Exception:

    Notice responses (AUR, CP-2000, etc.) should be routed to the appropriate campus address listed in IRM 21.1.7-1, Campus Address. SERP, IRM, etc. research is required to identify the appropriate stop number.

  2. Form 3210 must include the following information:

    • The "To" line with the appropriate complete address

    • "Release Date" - date Form 3210 sent to SPC

    • "Remark" - tracking information

    • "Quantity"

    • "Code or Type" of document (example: 1040, 1040EZ, 1120)

    • "Document Identification" - Taxpayer’s Name Control, TIN (Last 4 digits only), Tax Year, and MFT

    • "From" - The TAC complete return address, a contact person name and fax number where the files are maintained.

      Note:

      Managers of small TACs (1-2 persons) can maintain their files at the office where they are physically located rather than the originating location.

    • "Releasing Official" - Signature and title

    • "Original Telephone Number"

  3. TACs with two or more employees will have their Form 3210 reconciled by another FA employee prior to the envelope being sealed. Employees must follow the rules governing Segregation of Duties which will not allow the employee to prepare and review the same document.

    Exception:

    The only instance when a Form 3210 will NOT be reviewed by another FA employee is in a TAC with fewer than two employees.

  4. Form 3210 cannot be reconciled by the preparer.

  5. List all Non-Remittance Form 3210 on the Non-Remittance Follow-Up Review Log.

  6. For return received with remittance that has been processed using RS-PCC, stamp the return with an official "Received with Remittance" stamp.

  7. Place RS-PCC and non remittance returns in the same envelope; but on separate Form 3210s. Write "RS-PCC" at the top of the Form 3210 designated for RS-PCC returns and write "Non-Remittance" at the top of the Form 3210 designated for Non-Remittance returns.

    Note:

    Form 795-A not required to be shipped to Submission Processing; however it must be kept in-house for three years per the Retention Standard for Form 795's.

  8. Every effort should be made to transship returns without payments, e-4442 referrals, notice(s), and/or letter(s) on the same day received at the receiving site. A new shipping procedure requires that packages containing PII are to be sent via a private delivery carrier (UPS and FedEx). Shipping by UPS Ground is recommended. See IRM 3.10.72.11, Transshipment Guidelines for guidelines and shipping instructions for packages containing Sensitive but Unclassified (SBU) and Sensitive PII documents when items are sent through UPS and FedEx. Please ensure you use the Campus Ship labels from the http://www.ups.com/ website.

  9. During peak filing season periods, all payments and payments with returns will be processed ahead of returns without payments. See IRM 21.3.4.7.3.2(5).

  10. The Submission Processing Campus (SPC) should provide the acknowledged copy of the Form 3210 within ten (10) calendar days. When missing acknowledgement copies of Form 3210 are identified, the manager or authorized designee will follow-up with the SPC via email, Fax or telephone within five (5) business days after the ten calendar days has expired. Document follow-up actions taken to resolve the missing acknowledgements on the Non-Remittance Follow-Up Review Log, see Exhibit 1.4.11-13.

    1. Form W-7/W-7(SP) packages without remittance must go on the Non-Remittance Follow-up Review Log. List a W-7/W-7(SP) package without remittance on the Non-Remittance Follow-up Review Log as "3210/W-7" or "3210/W-7(SP)" . Refer to IRM 21.3.4.19.5, Mailing Form W-7/W-7(SP) Packets.

  11. For non-remittance package, on the fifth (5th) business day after the end of the follow-up date, check UPS tracking to confirm that the package was delivered. If yes, attach the UPS tracking information print to the unacknowledged Form 3210 to confirm receipt. Document the Non-Remittance Follow-Up Review Log with the UPS tracking confirmation date. If no, consider the package to be lost.

  12. For a package that is considered to be lost, report the incident within one hour of identifying to:

    • Your Manager

    • TIGTA at 1–800-366-4484

    • Situational Awareness Management Center (SAMC) by completing security incident reporting form at http://gdi.web.irs.gov/archibus/schema/ab-products/gdi/samc/csi_samc_reporter_report_incident.axvw or call 1–866-216-4809.

    Example:

    Form 3210 with non-remittance was mailed to the appropriate Submission Processing Campus (SPC) on October 5, 2012. If you have not received the acknowledgement Form 3210 by November 5, 2012, the manager or designee will follow-up with the SPC via email, fax, or telephone by November 19, 2012 (10 workdays after the thirty days has expired). If you have not received the acknowledgement of Form 3210 for non-remittance after December 3, 2012 (10 workdays after the follow-up date), check UPS tracking to confirm the package was delivered. If yes, attach the UPS tracking information print to confirm receipt to the unacknowledged Form 3210. If the unacknowledged Form 3210 cannot be validated through UPS tracking, consider the package lost and report the incident within one hour of identifying.

  13. Once acknowledgement has been received, or UPS tracking confirmation acknowledged the package was delivered to the SPC, manager or authorized designee must type initials in the last column of the log. For a package that is considered to be lost, once the incident is reported and all reports are completed; manager or authorized designee must type initials in the last column of the log. A copy of the SAMC report must be provided to the Area Remittance Analyst for all lost packages.

21.3.4.8.5  (10-01-2009)
SB/SE Documents

  1. The following procedures will be followed for accepting documents for SB/SE:

    1. The FA employee will give the SB/SE phone information to the taxpayer to contact the SB/SE employee or representative to come to the TAC lobby to pick up the documents.

    2. If the SB/SE employee/representative cannot be located: Collect the documents and place in a secure (locking) location in the TAC. On a daily basis, an SB/SE representative will arrange with the FA employee to pick up documents.

21.3.4.8.6  (12-20-2010)
Disclaimer Stamps on Secured Returns

  1. Stamp secured returns with appropriate disclaimer stamp:

    • SELF-HELP

    • PREPARED, BUT NOT AUDITED

    • REVIEWED, BUT NOT AUDITED

  2. Stamp the return beneath the area for the paid preparer's information.

  3. If your review of the return reveals that changes need to be made and the taxpayer refuses to make changes, do not stamp the return with the disclaimer stamp. Only returns prepared with your guidance or reviewed and approved as filed should be stamped with the disclaimer stamp.

21.3.4.9  (10-01-2013)
Forms, Instructions, and Publications

  1. The TAC employee will provide taxpayers with free copies of forms, instructions and publications that are stocked in the TAC. See IRM 21.3.4.9.1, Ordering and Stocking Forms and Publications.

  2. The TAC Product List consists of three categories:

    1. Required Products - Current year tax products listed in this category must be stocked in each TAC, when available. If the demand for a specific required product is low, a minimal inventory is encouraged.

    2. Discretionary Products - Tax products in this category are optional for each TAC based on taxpayer demand/need and TAC storage space.

    3. Do Not Stock – Products in this category will not be stocked in any TAC but may be ordered for taxpayers.

  3. If a taxpayer requests a product that is not stocked in the TAC but is available, offer to order the product for the taxpayer:

    • Order using ELITE on Account Management Services (AMS). See instructions at http://serp.enterprise.irs.gov/databases/local-sites-other.dr/elite.dr/elite_instructions.htm
      If no IDRS access, orders can be placed using Forms and Publications by U.S. Mail at http://www.irs.gov/uac/Forms-and-Publications-by-U.S.-Mail

    • Offer Pub 4604, Use the Web for IRS Tax Products & Information and inform taxpayers that they can access and download forms and/or publications on the IRS website at: http://www.irs.gov/Forms-&-Pubs or can order by calling 1–800-TAX-FORM (829-3676).

    • For TACs with FSA Kiosks, offer assistance to taxpayers on how to use the FSA Kiosk to print products not stocked in the TAC. For procedures on using the FSA kiosks, see IRM 21.3.4.2.2, Facilitated Self Assistance.

    • Products that are ten pages or less may be printed in the TAC and provided to the taxpayer, if necessary. For lengthy products that are more than ten pages, the TAC employee will order the product for the taxpayer (see exception below). Printing tax products in TACs should be done on a limited basis only. Relevant sections of publications needed to answer tax law questions may be printed if the publication is not available in the TAC.

      Exception:

      TACs may occasionally need to make exceptions to the ten page limit to accommodate individual taxpayers on a case-by-case basis. When approving exceptions, consideration should be given to taxpayers that have experienced extreme hardships (i.e., made repeated visits from great distances, arrived at the TAC and it was closed, physically challenged to travel, etc.). When possible, exceptions must be approved by management.

  4. For Form 8109 and Form 8109-B inquiries, see IRM 21.7.1.4.8.2.1, Resolving Inquiries Involving FTD Coupons Including Inquiries Received In Taxpayer Assistance Centers.

21.3.4.9.1  (10-01-2013)
Ordering and Stocking Forms, Instructions, and Publications

  1. TAC employees' duties include ordering and stocking tax products for the public.

  2. TACs stock forms, instructions and publications using the http://publish.no.irs.gov/distsys/pod/pod.html

  3. A TAC alert message will be issued when a non-yearly product is revised and when unexpected revisions are made to yearly products. TAC alerts are posted on the TAC Program page. TAC employees can sign up for product revision alerts on the http://publish.no.irs.gov/catlg.html website.

  4. The following resources are used to manage tax products in the TAC:

    1. Balance On Hand (BOH) survey - Conducted annually over a three-week period after filing season to determine the number of full cartons, or equivalent quantities, of remaining forms, instructions and publications in stock. A TAC alert is issued when the survey needs to be completed. Refer to the TAC Program page for instructions.

    2. Initial Product Order (IPO) survey – Conducted annually over a three-week period to order initial quantities of forms, instructions and publications needed for the next Filing Season. A TAC alert is issued when the survey can be accessed and completed. Products are scheduled for delivery to TACs beginning in the fall. Survey information can be printed or saved as an Excel file and used to verify the quantities of initial order shipments. Refer to the TAC Program page for information and instructions.

    3. Document 7130, National Distribution Center (NDC) Product Catalog is a list of printed products available from the NDC.

    4. TAC employees must use the online Order and Subscription Management System (OSMS) to replenish tax products needed after the initial shipments from the IPO Survey. The OSMS allows you to monitor only orders placed using OSMS. This system does not include the status of orders placed by the IPO survey.

    5. TACs should refer to the TAC Program page for assistance in resolving order and delivery issues. See TAC Delivery Contacts at: http://publish.no.irs.gov/distsys/pod/delivery_contact.html

  5. Initial filing season products are shipped to TACs based on the quantities specified in the IPO survey. However, all tax products can be ordered at any time during the year. New Filing Season products should be made available to the public by the start of the calendar year (when possible).

  6. When there are space limitations, prior year Filing Season products will not be stocked in TAC offices.

  7. TACs should stock State and Local Income Tax forms in locations where a State and/or Local Income Tax is applicable. When the TAC is not able to stock State and Local forms, TAC employees will provide information on how to locate the State and Local Income Tax offices (address, telephone number and web site, when available).

  8. TACs have one Order Point Number (OPN): nnnnn-6699. Only accept deliveries of boxes which have your OPN on a computer generated label.

    Caution:

    If you are responsible for opening packages in your TAC, refer to IRM 21.1.3.10.8, Suspicious Packages and Letters. If any package looks suspicious, DO NOT OPEN IT.

  9. Work with your manager to determine the size and frequency of your orders. Be aware of space limitations and TAC appearance when ordering and stocking products. Do not order voluminous quantities and/or stock discretionary products that are not in demand for your TAC.

  10. Ensure forms display racks are stocked, labeled and professional in appearance. Each TAC will determine which tax products to stock on display racks based on available space and taxpayer demand/need. TACs should use forms rack inserts, if possible, to assist with forms management. Locally developed inserts should not be used. Samples of the inserts and ordering information can be found on the http://win.web.irs.gov/field/FA_jobaids.htm page under Miscellaneous - Forms Rack Inserts.
    The three inserts available to order are:

    • Form 13983, Re-Stock

    • Form 13984, Out of Stock

    • Form 14050, Product Not Available Until

      Note:

      The Product Not Available Until insert contains a space for an estimated date (if known) when you expect to receive the product in the TAC.

  11. Labels and holders for the forms racks:

    • Label holders, with integral self adhesive backing, must be attached to the front end of the forms rack shelves and centered on each form bin. Install one (1) label holder per forms bin, (20 label holders per standard forms rack). Install label holder aligned with the top edge of each shelf.

    • Labels (1” high x 6” long) must be adhesively applied to paper inserts (supplied with holders) and inserted into the label holder. Labels can be changed by sliding out the old label and inserting the new label. Do not apply adhesive labels to the outside of the holder.

    • Use the Filing Season Required Stocking List for identification of required labels for forms bins. Multiple forms bins and labels may be required for high volume forms. All labels need to identify whether an item is a Form, Publication, or Instruction.

    Note:

    First letters of words such as: Schedule, Form, Instruction and Publication must be capitalized; all other letters in words must be lower case.

  12. ELMS Course 2546 and Document 12659, Procedures On Ordering Forms (POOF) is used to train employees on these procedures.

21.3.4.10  (08-09-2013)
Return Preparation Assistance

  1. Return preparation is a need based courtesy service that will be provided to qualifying taxpayers to prepare a correct return. This service is provided only to taxpayers who can be present during return preparation. Need based return preparation, for current and prior years, is limited to individual income tax returns with total income equal or less than the Field Assistance threshold amount, which is determined by the current Earned Income Tax Credit (EITC) income limit. If the taxpayer has a Form 1099-A or Form 1099-C and is impacted by a Cancellation of Debt, the Scope of Service Total Income Return Preparation Limitation does not apply.

  2. Priority for return preparation service will be as follows:

    Filing Season
    1. Current year returns (federal and state)
    2. Return priority criteria (given as much as possible)
    a) Taxpayer located in federally declared disaster area
    b) Taxpayers with disabilities
    c) Elderly taxpayers, particularly those traveling a distance

  3. Return Exception Criteria (Approved by Group Manager)

    1. Cancellation of debt, such as foreclosure

    2. Military, spouse in a combat zone

    3. Delinquent return impacting a federal lien

    4. Delinquent return with an impending statute expiration

    5. Other hardship – managerial discretion

  4. Priority for return preparation service will be as follows:

    Non-filing Season
    1. Current year returns (federal and state)
    2. Prior year returns (federal)
    3. Amended returns
    4. Return priority criteria (given as much as possible)
    a) Taxpayer located in federally declared disaster area
    b) Taxpayers with disabilities
    c) Elderly taxpayers, particularly those traveling a distance

  5. Return Exception Criteria (Approved by Group Manager)

    1. Cancellation of debt, such as foreclosure

    2. Military, spouse in a combat zone

    3. Delinquent return impacting a federal lien

    4. Delinquent return with an impending statute expiration

    5. Amended returns nearing statute expiration

    6. Other hardship – managerial discretion

  6. Returns may be prepared for six (6) delinquent years and the current year. This is defined as the seven (7) most recent years until the statute expiration year’s due date.

    Example:

    During Filing Season 2013, we may prepare the delinquent tax year 2006 return until April 15, 2013. After April 15, 2013, we may prepare the delinquent tax years 2007 through 2011 and the current year tax return 2012.

    See IRM 21.3.4.10.2, Return Preparation Criteria for tax preparation criteria.

    Note:

    Inform taxpayers any refunds beyond the three year statute date will be forfeited.

  7. Use of direct deposit will also be encouraged, if applicable. Direct deposit is only available for the current tax year.

  8. Authorized tax preparation software is used to prepare all current and prior year individual tax returns. This includes the Form 1040X, Amended U.S. Individual Income Tax Return. Modernized e-file enables tax years 2011 and 2012 returns to be filed electronically, using the electronic signature method (Practitioner PIN).

  9. All TACs, should have an employee (when available) to screen taxpayers, as well as manage the flow of traffic through the office. It is critical all taxpayers requesting need based return preparation be screened to ensure the return is within Field Assistance scope of services. See the Field Assistance http://gatekeeper.web.irs.gov/ITLA/fa_scope_master_index.aspx

  10. Tax returns will not be prepared in situations where the taxpayer’s verified SSN does not match the W-2 or 1099 presented. Taxpayers with mismatch SSNs will no longer be referred to VITA sites. These taxpayers will be referred back to the originator of the source documents for correction. Verified ITIN taxpayers are exempt from this requirement. See IRM 21.3.4.24, Resolving Form W-2/Form 1099 Inquiries for guidelines regarding Non-Receipt, Incorrect, or Loss of Form W-2, Form 1099, and Form 1098 – Information Returns. After non-receipt guidelines have been followed, the return may be filed electronically with the Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. You must link the Form 4852 to the W-2 form.

  11. Employees may take reasonable steps to ensure the authenticity of documents and information provided by the taxpayer(s). If the supporting information or documents provided do not appear valid or consistent, the employee should not allow the deduction or credit. If the employee determines the item is questionable and/or unallowable, the item should not be claimed on the return. If the taxpayer does not cooperate with the employee’s decision, the employee will not prepare the return. Employees may apply these criteria to the IDRS verification of the SSN.

    Exception:

    Taxpayer’s with verified ITINs which are not reflected on their income documents (ITIN/SSN mismatch) are exempt from this requirement.

  12. Employees may research and verify the CAU and PDT indicators in AMS/IDRS for return preparation, per IRM 21.3.4.5.3, Caution Upon Contact and IRM 21.3.4.5.4, Potentially Dangerous Taxpayer.

  13. Current year and prior year returns eligible for MeF electronic filing, will be e-filed through the FA designated MeF ending date. State returns will be prepared for the current year only and will be e-filed through the same FA designated MeF ending date.

    Example:

    Tax Year 2011 returns were filed using MeF through November 16, 2012.

  14. Employees should inform taxpayers how to check the status of their current year individual federal income tax refund. Please refer to IRM 21.4.1.3, Refund Inquiry Response Procedures.

  15. TACs may occasionally need to make exceptions to the return preparation scope of service to accommodate individual taxpayers on a case-by-case basis. Consideration should be given to the taxpayer’s that have experienced extreme hardships, i.e., made repeated visits from great distances, arrived at the TAC and it was closed, physically challenged to travel, etc. when approving exceptions. This includes the preparation of a paper return. All exceptions to the return preparation criteria must be approved by management. This approval must be documented on the IRS Return Preparation Checklist.

  16. If the taxpayer's needs are outside the scope of services, employees are to provide the taxpayer alternatives on the IRS website, which houses Free File, or a local or a national practitioner referral service.

    Example:

    National Association of Enrolled Agents (NAEA) or American Institute of Certified Public Accountants (AICPA). These services may be contacted as follows:

  17. All computers used for return preparation will adhere to the seven year tax preparation software installation standard. The current year software is included in the seven year installation standard. All current year software is loaded on the "C" drive, if space is available. Information Technology (IT) is responsible for initial software installation and removal of all years outside of the seven year requirement.

  18. Return preparation is completed "interview style" using the Interactive Interview in the return preparation software (Use TW Interview Sheet "57 Questions" for tax years 2006 through 2007 – Use TW Interactive Interview Tool for tax years 2008 – 2012).

  19. Tax returns will be prepared in situations where the taxpayer’s verified ITIN does not match the Form W-2 or Form 1099 presented.

  20. During return preparation, if a taxpayer indicates they are impacted by Identity Theft; refer to IRM 21.3.4.30, Identity Theft Overview for appropriate procedures.

  21. The Taxpayer Assistance Centers have been approved to file paper returns in the cases where the taxpayer will be claiming the First-Time Homebuyer Credit. Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (current revision), must be attached to their paper return.

  22. State Returns will be prepared for the current year through the FA designated MeF ending date. Prior year and amended state returns are not prepared.

  23. Taxpayers are to be provided a paper copy of their prepared return and Form 8879, if electronically filed. After the data entry is completed in the Form 1040 format, the return preparation software prompts the user to select which Form 1040 series to be printed. The user may then select whether to print the Form 1040, Form 1040A or 1040EZ.

  24. Complete Form 14055, Cancellation of Debt Return Preparation Checklist, for impacted taxpayers.

21.3.4.10.1  (06-17-2013)
Electronic Filing

  1. TACs are considered "e-file only sites" and prepare and file current year individual and prior year MeF eligible returns electronically.

  2. Paper Return Preparation is available at all locations as follows:

    1. Prior year return

    2. Amended return

    3. Other return preparation circumstances

  3. Return preparation exception authority criteria is provided to the Area Offices for the annual exception solicitation. Subsequent criteria changes will be communicated. Issues to consider when making recommendations for TAC return preparation exceptions include staffing, attrition, training, TAC traffic patterns, etc.

  4. Exception requests will be submitted as follows:

    1. An annual exception solicitation for TAC Exceptions and limited return preparation days will be completed prior to each filing season and must be approved by the Director of Field Assistance. This information must be posted on IRS.gov.

    2. All subsequent ad-hoc changes to Return Preparation services will be considered on a case-by-case basis. These changes must be approved by the respective Area Director and do not require approval by the Director, Field Assistance.

  5. Area offices are responsible to notify the HQ Return Preparation/e-file Analyst of all changes to Return Preparation/e-file services and the HQ Communications Analyst. Contacts should be made via email to ensure HQ has a recordation of the TACs being changed and the IRS.gov "Services Provided" list is updated. See IRM 1.4.11.8, Publishing Taxpayer Assistance Center Information for guidance on preparation of the Content Publishing Request (CPR). Once changes are posted to IRS.gov, the area office is free to implement the requested Return Preparation/e-file changes.

  6. Paper Return Preparation for the current year may be done at the Puerto Rico TAC as needed.

  7. All sites transmit returns to the software vender via the internet using the indirect filing method and receive acknowledgements through the vendor.

  8. All sites use the Practitioner Personal Identification Number (PIN) method to electronically sign returns. Form 8879, IRS e-file Signature Authorization is used in all TACs to obtain taxpayers' PINs and their original signatures authorizing IRS representatives to input the PINs into their tax returns. The Electronic Return Originator (ERO) PIN for each TAC will be its six digit Electronic Filing Identification Number (EFIN) followed by a five digit individual number.

    Note:

    Each TAC will maintain a consolidated listing of employee PINs.

  9. Form 8453, U. S. Individual Income Tax Transmittal for an IRS e-file Return will be used to transmit required supporting documents to the IRS. Taxpayers filing the following in-scope forms will be required to provide supporting documentation:

    • Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents

    • Form 8885, Health Coverage Tax Credit

  10. Taxpayers requesting proof of filing are mailed an acknowledgement (Form 9325, Acknowledgement and General Information for Taxpayers Who File Returns Electronically) printed from the authorized tax preparation software program after their return is accepted. This service is offered ONLY upon request. Advise the taxpayer to keep the return and supporting documents for future reference.

  11. Additional return preparation guidance may be found in Job Aid 52322, Field Assistance Taxpayer Assistance Center Electronic Filing Kit & Guide (EKG), located at http://win.web.irs.gov/field/field_return_prep.htm

21.3.4.10.1.1  (01-04-2013)
Roles and Responsibilities

  1. TAC e-file coordinators are responsible for:

    • Communicating issues and problems to management

    • Ensuring training for end-users

    • Maintaining a consolidated list of employee PINs

    • Administering the e-file process timely

    • Coordinating the downloading of major updates to all workstations in their TAC

    • Setting up and registering software on TAC computers, establishing appropriate user authorities, initial forms, setting tax form defaults, Submission ID ranges, etc. (This requires the e-file coordinator to use Security Manager to ensure each user has a unique identification and password).

  2. TAC employees are responsible for ensuring return preparation procedures are followed, including:

    • Using nationally approved IRS Return Preparation Checklist.

    • Using nationally approved Disaster IRS Return Preparation Checklist, if required.

    • Using nationally approved Cancellation of Debt IRS Return Preparation Checklist, if required.

    • Following return preparation procedures.

    • Providing e-file/return prep criteria to taxpayer during screening.

    • Reviewing required documentation (social security cards, if available, W-2s, etc.)

    • Researching and verifying the CAU and PDT indicators in AMS/IDRS per IRM 21.3.4.5.3, Caution Upon Contact (CAU) and IRM 21.3.4.5.4, Potentially Dangerous Taxpayer may be performed at the TAC employee’s discretion.

    • Following e-file/return preparation procedures during contacts with taxpayers including use of the Interactive Interview and "Help Me" tabs when available.

    • Providing copies of returns and signature documents to taxpayers, including the appropriate disclaimer statement.

21.3.4.10.1.2  (01-04-2013)
Transmission and Acknowledgement

  1. Current year and prior year returns eligible and prepared for electronic filing are batched daily for timely transmission.

  2. Batched returns must be transmitted within 3 calendar days of preparation.

  3. Printed Declaration Control Reports (DCR) are used to verify signature document (Form 8879) and the return before transmission.

  4. Retain DCRs with batched returns until transmission is accepted by receipt of Acknowledgement Report.

  5. Acknowledgement Reports must be retrieved and printed within two workdays of original transmission.

  6. Accepted returns are filed in their existing batches by acknowledgement date. Since current year and prior year returns may be electronically filed, TACs may batch all accepted returns together or they may separate them.

    Example:

    Tax year 2011 and 2012 accepted returns may be separated by the year, but placed in the same date category in the file.

  7. Rejected returns will be pulled from the batch, recorded on the Reject Tracking Log (See Exhibit 21.3.4-10, Taxpayer Assistance Center Reject Tracking Control Log) and processed timely per Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

  8. Acknowledgement Reports are filed by date and maintained with the batch by the e-file Coordinator. Since current year and prior year returns may be electronically filed, TACs may batch the years together or may separate them.

    Example:

    Tax year 2011 and 2012 Acknowledgement Reports may be separated by the year, but placed in the same date category in the file.

21.3.4.10.1.3  (10-01-2013)
Rejects

  1. All procedures for resolving rejects will be in compliance with Publication 1345. This Handbook, Electronic Filing Season Supplement For Authorized IRS e-file Providers, and Publication 1346, Filing Season Supplement for Authorized IRS e-file Providers, will be accessible in every TAC. There are separate reject codes for CCH and IRS. Refer to the Taxwise Knowledge Base for returns rejected by CCH and refer to the following link if the return was rejected by IRS:

    • Open http://serp.enterprise.irs.gov/

    • Click on Local, Sites/Other tab

    • Under Electronic Tax Administration Click on Error Reject Codes

  2. All rejected returns are documented on the reject log. See Exhibit 21.3.4-10, Taxpayer Assistance Center Reject Tracking Control Log. Rejects are processed immediately after acknowledgement files are retrieved. Taxpayers do not need to be notified if the reject can be immediately corrected. Examples of returns that may be corrected without taxpayer contact include:

    • IRS data entry errors or key stroke errors

    • Last name transposed

    • TIN transposed

  3. Rejected returns can be corrected and retransmitted without new signatures on the Form 8879 if changes are not more than:

    • $50.00 to Total Income or AGI or

    • $14.00 to Total Tax, Federal Income Tax Withheld, Refund or Amount you Owe.

  4. If a correction is made and the original return is altered, a new return must be mailed to the taxpayer.

  5. If a reject cannot be corrected immediately, the taxpayer must be contacted within 24 hours of the acknowledgement date and provided with the reject code(s) accompanied by an explanation.

  6. The TAC employee must take reasonable steps to inform the taxpayer of the rejection within 24 hours of the acknowledgment date. Reasonable steps may include leaving a voice message or using the nationally approved reject letter. The e-file reject letter will be preloaded in the desktop version of the return preparation software. Only the e-file reject letter generated through the return preparation software will be used. (See Exhibit 21.3.4-8, Electronic Filing Reject Letter). The federal reject letter may be used to advise the taxpayer of a state reject, by completing the "Other" section of the Form 4525, Reject Letter.

  7. If the reject can be resolved with additional information from the taxpayer, request the necessary information when contacting the taxpayer per number 5 above. If there is no response from the taxpayer within five business days, mail the taxpayer the Reject Letter, along with his/her documents.

  8. If a reject cannot be resolved, the TAC employee must notify the taxpayer within 24 hours of the acknowledgement date. In situations where additional taxpayer contact would be of no benefit, mail the taxpayer the Reject Letter with his/her documents instructing them to correct, sign and forward a paper return to the appropriate Submission Processing Campus. Examples of rejects that cannot be corrected include, but are not limited to:

    • Dependents SSN on Schedule EIC and the corresponding Year of Birth do not match data received from the SSA

    • Dependents SSN was previously used on another return

  9. The Taxpayer Assistance Center Reject Tracking Log must be used to record actions taken to close the reject. See Exhibit 21.3.4-10, Taxpayer Assistance Center Reject Tracking Control Log Time Frame and History Guidelines, and the Field Assistance Taxpayer Assistance Center Electronic Filing Kit and Guide (located on the http://win.web.irs.gov/field/field_return_prep.htm page under Resource Documents) for the required documentation.

  10. If the return was electronically filed on April 15 or by the FA designated MeF ending date, and cannot be resubmitted electronically, the return must be filed on paper. See IRM 3.30.123.12.2, Electronic Postmark and Tax Return Due Date for instructions on how to submit the paper return.

  11. When a reject letter is mailed to the taxpayer, a copy of the reject letter must be retained either electronically or hard copy. Job Aid 52322, Field Assistance Taxpayer Assistance Center Electronic Filing Kit and Guide (located at http://win.web.irs.gov/field/field_return_prep.htm) provides instructions on how to save the reject letter. If a hard copy of the reject letter is retained, file it with the taxpayer’s Form 8879 signature documents. If the return is not eligible for electronic filing and all of the taxpayer’s documents are returned, the hard copy of the reject letter is retained with either the corresponding Acknowledgement Report rejecting the return or in a secure file.

  12. If a taxpayer returns with their signed return that has been rejected and can’t be filed electronically, accept and process using normal processing procedures. This includes returns rejected by IRS or another preparer.

21.3.4.10.1.4  (01-04-2013)
Retention Requirements

  1. TACs will NOT maintain paper copies of returns, either signed or unsigned.

  2. The signed Form 8879, IRS e-file Signature Authorization must be retained for six years from the due date or IRS received date, whichever is later.

  3. The TACs will retain all return preparation/e-file documentation for six years, from the due date or IRS received date, whichever is later.

    Note:

    Per Legal Counsel Opinion, the six year record retention period only applies to Form 8879. All other return preparation/e-file documentation must be retained for three years. Therefore, local Management has the option, on a case by case basis, to separate out Form 8879, to retain for the six year retention period and then destroy all other return preparation/e-file documentation after the three year retention period, if storage limitations are a factor.

  4. Supporting documents of returns filed using Form 8879 (PIN signatures) must be retained for six years from the due date or IRS received date, whichever is later. These documents include:

    • Signed Form 8879

    • Electronic copy of each return, which includes worksheets used to prepare the return from the return preparation software

    • Acknowledgement Reports

    • Form W-2, Form 1099-R, and any Form 1099 showing withholding

    • IRS Return Preparation Checklist
      If preparing multiple years, retain the IRS Return Preparation Checklist with the current year.
      If the prior year return was out of scope and the preparation was approved by the Group Manager, copy the IRS Return Preparation Checklist and attach it to the prior year documentation.
      If the prior year return preparation was not out of scope, a copy of the IRS Return Preparation Checklist is not required to be maintained with the prior year documentation.

    • Disaster IRS Return Preparation Checklist (If required for the current year)

    • Cancellation of Debt IRS Return Preparation Checklist (If required for the current year)

    • Reject documentation (This includes work papers and the reject letter, either electronically or hard copy)

    • Copy of supporting documentation from Form 8453, U. S. Individual Income Tax Transmittal for an IRS e-file Return.

  5. Form 8453 will be maintained electronically and a copy of the supporting document/s will be retained with the Form 8879.

  6. Form 8453 must be sent to the Submission Processing Campus specified in the Form 8453 instructions on Form 3210, Document Transmittal, within three (3) business days. (See IRM 1.22.5.4.7, Document Transmittal for Form 3210 processing).

  7. Ensure Form 3210 acknowledgements are received within 30 calendar days of submission. Contact Submission Processing Campus, Receipt and Control Section, to track submitted Form 3210 and Form 8453. Retain the Form 3210 acknowledgement copy.

  8. The e-file coordinator will back-up to disk all current year taxpayer return data from the e-file transmitting machine by December 15th of each year. The return data should be retained for six years from the due date or IRS received date, whichever is later, unless local management has made the decision to retain for three years due to storage limitations. See IRM 10.2.13.4.3, Storage.

  9. All taxpayer return data (current and prior year) must be deleted from the computer after December 31st but before January 10th of each year. See IRM 10.2.13.4.5, Disposition and Destruction.

  10. Supporting documents of returns filed using Form 8879, which also could include the Form 8453, will be retained in the TAC for three years, then shipped to the Federal Records Center (FRC) for storage, if needed. Please refer to IRM 1.15, Records and Information Management – Retiring and Requesting Records for additional guidance. This reference also includes instructions on how to retrieve records. See Exhibit 21.3.4-12, Field Assistance, Retention Requirement and Shipment Table to clarify the record retention specifics.

21.3.4.10.2  (03-01-2013)
Return Preparation Criteria

  1. Priority for return preparation service will be as follows:

    Filing Season
    1. Current year returns (federal and state)
    2. Return priority criteria (given as much as possible)
    a) Taxpayer located in federally declared disaster area
    b) Taxpayers with disabilities
    c) Elderly taxpayers, particularly those traveling a distance

  2. Return Preparation Exception Criteria (Approved by Group Manager)

    1. Cancellation of debt, such as foreclosure

    2. Military, spouse in a combat zone

    3. Delinquent return impacting a federal lien or levy

    4. Delinquent return with an impending statute expiration

    5. Other hardship – managerial discretion

  3. Priority for return preparation service will be as follows:

    Non-filing Season
    1. Current year returns (federal and state)
    2. Prior year returns (federal)
    3. Amended returns
    4. Return priority criteria (given as much as possible)
    a) Taxpayer located in federally declared disaster area
    b) Taxpayers with disabilities
    c) Elderly taxpayers, particularly those traveling a distance

  4. Return Preparation Exception Criteria (Approved by Group Manager)

    1. Cancellation of debt, such as foreclosure

    2. Military, spouse in a combat zone

    3. Delinquent return impacting a federal lien or levy

    4. Delinquent return with an impending statute expiration

    5. Amended returns nearing statute expiration

    6. Other hardship – managerial discretion

  5. The criteria for return preparation (current and prior years) is as follows:

    • Individual income tax returns with total income of $51,000 or less.

    • A joint return is only prepared if both the taxpayer and spouse are present.

      Note:

      Military Exception: Spouse can sign for the spouse in a combat zone/qualified hazardous duty area. The spouse in the TAC needs to sign a statement that explains their spouse is serving in a combat zone/hazardous duty area. This signed statement must be attached to Form 8879. No other identification, i.e., picture ID of the spouse in the military or Social Security Card of the spouse in the military is required. Additionally, when the spouse in the TAC has a signed Power of Attorney from the spouse in the military (not in a combat zone/hazardous duty area) the return will be prepared using the same guidelines as stated above. See IRM 5.19.10.6.2.2, Filing Returns for Combat Zone or Contingency Operation Participants.

    • Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment)

    • Form 1040EZ

    • Form 1040A and Schedule EIC

    • Form 1040 with Schedules A, B (Interest and Ordinary Dividends; ordinary and qualified), C-EZ, EIC, L, M, R, SE (in conjunction with C-EZ only), Schedule D (Limited in scope for Cancellation of Debt only)

    • Form 2210 (Underpayment of Estimated Tax by Individuals, Estates and Trusts

    • Form 2441 (Dependent Care)

    • Form 3903 (Moving Expenses)

    • Form 4137 (Allocated Tips)

    • Form 4684 (Casualty and Theft)

    • Form 5329 (Additional Taxes on Qualified Plans)

    • Form 5405 (First Time Home Buyer Credit)

    • Form 5695 (Residential Energy Credit)

    • Form 8606 (Nondeductible IRAs and Coverdell ESAs)

    • Schedule 8812 (Child Tax Credit)

    • Form 8815 (Exclusion of Interest from Series EE and U.S. Savings Bonds

    • Form 8839 (Adoption Credits)

    • Form 8853 (Archer MSAs and Long-Term Care Contracts)

    • Form 8863 (Education Credits)

    • Form 8880 (Qualified Retirement Savings Contribution Credit)

    • Form 8885 (Health Coverage Tax Credit)

    • Form 8888 (Direct Deposit of Refund)

    • Form 8889 (Health Savings Accounts)

    • Form 8917 (Tuition and Fees Deduction)

    • Form 1040ES

    • Form 1040V

    • Form 1040X meeting the income limit criterion


    Puerto Rico TAC only-

    • Form 1040PR

    • Form 1040SS

    • Form 1040ES (SP)

    • Form 1116

    • Schedule H-PR

    Note:

    If claiming any of the credits or deductions listed below, additional documents are required:

    If claiming these credits/deductions You must provide
    Schedule A, Itemized Deductions A list of your deductions, with each section totaled
    Form 2441 – Dependent Care Credit Care provider’s name, address, SSN/EIN, and amount you paid
    Schedule R – Credit for the Elderly/Disabled Date of birth and if disabled, signed physicians statement to that effect
    Additional Standard Deduction Real Property Taxes Real estate property tax documents

  6. See http://serp.enterprise.irs.gov/databases/irm-sup.dr/current/itla/itla-home.htm for forms and schedules that are in-scope for return preparation.

  7. Married Filing Separate returns in community property states will not be prepared.

  8. Additional information for Taxpayers with Combat Zone account issues is found in IRM 5.19.10.6, IRM Combat Zone Accounts.

  9. Preparation of prior year returns and amended returns, Form 1040X, includes obtaining Information Return Processing (IRP) information. Returns may be prepared for not more than six (6) delinquent years and the current year, per the guidance of Policy Statement P-5-133. This is defined as the seven (7) most recent years until the statute expiration year’s due date.

    Example:

    During Filing Season 2013 we may prepare the delinquent tax year 2006 return until April 15, 2013. After April 15, 2013, we may prepare the delinquent tax years 2007 through 2011 and the current year tax return 2012.

    Note:

    Inform taxpayers any refunds beyond the three year statute date will be forfeited.

  10. State tax returns may be prepared in conjunction with the Federal return (via e-file) using the same income and schedule limits applicable to the Federal return. State tax returns are prepared only when they are directly derived from the Federal return data. Employees may be required to prepare state returns that require additional minimal input not involving complex state law or computations. Multiple state returns may be prepared for one taxpayer.

    Example:

    The TAC located in Kansas City, MO may prepare the Missouri and Kansas state returns. If a state return is prepared, the ITAS may advise the taxpayer "As a courtesy service, your state tax return is being transmitted electronically in conjunction with the transmission of your Federal return. In the event your electronic return is not accepted or is rejected by the state, you, not the Internal Revenue Service, have the responsibility to resolve the issue with the state."

  11. If IDRS is accessed during the Return Preparation Process (e.g., determining if an Economic Stimulus Payment (ESP) amount was paid to the taxpayer or using the SSN exception criteria for an SSN verification) and outstanding returns and/or balances are indicated as due, see IRM 21.3.4.12.5, Balance Due Accounts for guidance. If the taxpayer needs to file a prior year return, prior year returns will not be prepared until after the current filing season, unless the return preparation exception criteria applies.

21.3.4.10.3  (01-04-2013)
VITA and TCE

  1. If the taxpayer's needs are outside the scope of services or return preparation time-slots are not available, employees provide the taxpayer with alternatives such as the IRS.gov Website which houses Free File or national practitioner referral services (e.g., American Institute of Certified Public Accountants (AICPA) or National Association of Enrolled Agents (NAEA), etc.). Taxpayers referred to national practitioner services are to be advised that these organizations generally charge a fee for their services. Taxpayers may incur fees for using some of the electronic filing options on the IRS.gov website if their income falls outside the qualifications for the program. A fee may also be charged for filing a state return.

  2. Taxpayers can be referred to a VITA site if return preparation time slots are not available and the taxpayer is unable to wait. Taxpayers are advised that VITA’s income limitation is the same for Field Assistance and a referral to a VITA/TCE site may also require them to wait or make an appointment due to limited resources at the site.

    Note:

    Many VITA/TCE sites are appointment only sites.

  3. Taxpayers are referred to a VITA site if the combined income on the return is at or below the threshold for EITC. For tax year 2012, VITA will provide assistance if the income is $51,000 or less. Taxpayers may be referred to TCE sites if they are age 60 years and older. The Return Preparation Criteria for VITA/TCE volunteers can be found in Pub 4012, VITA/TCE Volunteer Resource Guide.

    Note:

    Form 4684, Casualty and Theft will not be prepared by VITA or TCE sites.

    Employees should provide the taxpayer with the location of sites, hours of operation and specific services offered. FA continues to partner with Stakeholder Partnerships, Education and Communication (SPEC) to provide taxpayers the option of having returns prepared by volunteers. Where space is available these sites should be in the same building as existing IRS offices.

  4. FA will work with SPEC to ensure that each TAC has access to the up-to-date electronic listing of the services (including forms assistance), hours, and locations of the volunteer sites in their area. See SERP http://det0190cpsprpt/sitesearch/Default.aspx

  5. Taxpayers are only referred to sites where they can receive the assistance they need.

21.3.4.10.4  (01-04-2013)
Return Preparation Procedures

  1. Prior to return preparation, the TAC employee (IAR or Screener) performing the screening must determine if taxpayers meet return preparation criteria and can provide all necessary documentation (Social Security cards and Wage statements are not required for screeners to transfer the return preparation contact to an ITAS). During the screening process, taxpayers are instructed on what to bring with them for return preparation, including:

    • Valid unexpired driver's license or photo identification or other official document secured through a government agency, for taxpayer and spouse if applicable.

    • Social Security Number (SSN) cards, Adoption Taxpayer Identification Number (ATIN) cards, or Individual Taxpayer Identification Number (ITIN) cards or letters for names/TINs that appear on the return are acceptable documentation for verifying taxpayer's SSN, ATIN, or ITIN. Official SSA/IRS ITIN assignment letters are acceptable. Photocopies of these cards are not acceptable. Official letters issued to taxpayers from Social Security Administration (SSA) to verify an SSN ARE acceptable documentation.

      Exception:

      If the taxpayer and/or spouse do not have a SSN card or official IRS letter, obtain the SSN from the taxpayer and follow the Return Preparation Taxpayer Authentication procedures in Exhibit 21.3.4-14, Step 1 and any other applicable sections, to confirm the SSN matches.

      Exception:

      If the taxpayer does not have a SSN card or official IRS letter for the dependents, obtain the dependent's SSN from the taxpayer and follow the Return Preparation Taxpayer Authentication procedures in Exhibit 21.3.4-14, Step 5 and any other applicable sections, to confirm the SSN matches. If the dependent was born in the current tax year, and does not have a SSN card, then a birth certificate or other proof of birth will be required.

      Note:

      *If filing a Married filing Separate (MFS) return, the taxpayer must provide the spouse's SSN. The taxpayer is not required to have the SSN card for the spouse.

      Note:

      *If the taxpayer does not have the official ITIN letter/card with them, research to locate and verify the ITIN to prepare the return. This also applies for the taxpayer's spouse and any dependents being claimed. See IRM 21.3.4.19, Form W-7, Application for Individual Taxpayer Identification Number (ITIN) for ITIN information.

    • Laminated Social Security Cards are acceptable. If a laminated Social Security Card appears to be altered in any way, follow the Disaster Taxpayer Authentication procedures in Exhibit 21.3.4-14, Step 1 for the taxpayer/spouse and/or Step 5 for dependents, and any other applicable section, to confirm the SSN matches.

    • Correct birth dates for all names appearing on the return.

    • Financial institution account information for direct debit or deposit (i.e., check or bank statement), or Form 14058, IRS Return Preparation Checklist completed by the taxpayer.

    • All tax documents showing income, withholding, qualifying credits and complete employer information (Form W-2, Form 1099-R and all other Form 1099 series, etc).

    • Married filing Separate returns in community property states will not be prepared.

    • IDRS may be researched to verify the accuracy of the spouse's SSN for a Married Filing Separate Return under the limited circumstances described below:

    IF THEN AS
    Taxpayer states he or she filed with this spouse during any previous year You may access the taxpayer's account to verify the spouse's SSN for use on the return This is the taxpayer's return data, it would not be disclosure
    Taxpayer has not previously filed any return listing this spouse Accessing the account would not assist in verifying the spouse's SSN No information is available to give the taxpayer

    Exception:

    You do not access the spouse's account on IDRS under any circumstances. This would be an unauthorized access and could lead to an unauthorized disclosure if any information is given to the taxpayer. Inform the taxpayer his or her return will reject if the spouse's SSN is wrong. If this happens, FA will send a letter advising the taxpayer to file the return on paper. See IRM 11.3.1.7, Reporting Unauthorized Accesses or Disclosures concerning unauthorized disclosures.

  2. If the taxpayer meets the return preparation criteria, has all the necessary documents and tax law topics are in the scope of service, their return will be prepared at that time if staffing and traffic permits. If they do not have all necessary documentation, they may return to the TAC, with their information, for return preparation on another day. The Screener should advise the taxpayer that in order to have the return prepared they must bring with them all documentation including the Social Security Card (if they have it), valid unexpired driver's license or photo identification, and Wage Statements (W-2s, 1099-Rs, and all other 1099 series, etc.).

  3. Return preparation is available for taxpayers that have been screened and meet FA criteria. Return Preparation will be available on a first come, first served basis. However, the Group Manager may authorize return preparation for exception criteria taxpayers. The number of return preparation contacts on any given day is scheduled based on availability of FA staff, detailees (limited) and other work. If the demand for return preparation is greater than available resources, priority is given to current year returns. Prior year returns may be prepared after the filing season. Normally return preparation contacts are scheduled in 30-45 minute increments based on the number of employees available for tax return preparation. Return Preparation contacts are handled as follows:

    • Taxpayers meeting the return preparation criteria are to be assigned the next available "slot" and given their return preparation time. The scheduling is to be done by time and not by a particular employee. If all available slots are filled, taxpayers are instructed to return at a future date but reminded they may have to wait for return preparation.

    • Exceptions can be made when trying to accommodate taxpayers that meet the return preparation exception criteria, by the Group Manager.

    • Taxpayers may also be referred to the IRS website http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers for information regarding free or low cost methods for filing returns which includes VITA and TCE sites.

  4. The IRS Return Preparation Checklist is provided to each taxpayer with a return preparation time and required documentation they need to have their return prepared.

  5. One IRS Return Preparation Checklist will continue to be used for multiple year preparation.

  6. See IRM 1.4.11.11, Qmatic for Qmatic standardized ticketing guidelines.

  7. For information regarding extension of time to file, see IRM 20.1.2.1.3.1, Extensions of Time to File.

21.3.4.10.5  (10-01-2013)
Return Preparation Help Me Tabs, ITLA, and Software Default Settings

  1. Managers must ensure that all technical employees, including detailed employees, are familiar with IRM 21.3.4.8.6, Disclaimer Stamps on Secured Returns, which provides guidance for using the disclaimer for all returns prepared. Both the taxpayer and Service copies are to include the disclaimer. For e-file, this includes Form 8879 and the Form 1040 series. Each office must ensure return preparation software is initially set up to automatically print the appropriate disclaimer information on Form 8879 and the Form 1040 series.

    Note:

    If a current year paper return preparation exception is made or a Form 1040X is prepared in the TAC, the phrase "Prepared But Not Audited" may be typed on the form to appear on the Form 1040 series, page 2 on each impacted return or the TAC may use the "Prepared But Not Audited" stamp.

  2. All employees must ensure the following current tax preparation software worksheets and forms are in the return preparation tree for each return:

    • 1040 Wkt1 - Social Security, Other Income Worksheet

    • 1040 Wkt2 - Student Loan, Education Worksheet

    • 1040 Wkt3 - Child Tax Credit, Carryovers Worksheet

    • Form 8879 - 1040 e-file Signature Authorization

    • 1099G Wkt - Unemployment Benefits Worksheet

    • IRA Wkt - Traditional, Roth IRAs, ESAs Worksheet

      Note:

      These worksheets and forms must be used to data enter values and dollar amounts into the software, which then "flow" into the

      Form 1040 format to ensure no credits and/or deductions are omitted.

  3. All employees must use the Interactive Interview feature (in the software) and the "Help Me" tabs when available for the following:

    • Filing Status - (Use ITLA for tax years 2006 through 2007 - Use TW Help Me Tabs for tax years 2008 through 2012)

    • Dependents - – (Use ITLA for tax years 2006 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2012)

  4. All employees must use the ITLA tool for the following topics:

    • Filing Status: - (Use ILTA for tax years 2006 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2012)

    • Dependents:- (Use ILTA for tax years 2006 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2012)

    • Charitable Contributions: - (Use ITLA for tax years 2006 through 2012)

    • Casualties and Thefts: - (Use ITLA for tax years 2006 through 2012)

    • Education Credits: - (Use ITLA for tax years 2006 through 2012)

    • Medical Expenses: - (Use ITLA for tax years 2006 through 2012)

    • Home Mortgage Interest:- (Use ITLA for tax years 2006 through 2012)

    • State and Local Taxes: - (Use ITLA for tax years 2006 through 2012)

    • Child and Dependent Care Expenses: - (Use ITLA for tax years 2006 through 2012)

    • Qualified Adoption Credits: - (Use ITLA for tax years 2006 through 2012)

    • Social Security: - (Use ITLA for tax years 2006 through 2012)

    • Student Loans: - (Use ITLA for tax years 2006 through 2012)

    • Deductible and Nondeductible IRA: - (Use ITLA for tax years 2006 through 2012)

    • Educator Expense: - (Use ITLA for tax years 2006 through 2012)

    • Education Savings Accounts (ESA and QTP): - (Use ITLA for tax years 2006 through 2012)

    • Tuition and Fees: - (Use ITLA for tax years 2006 through 2012)

    • Cancellation of Debt: - (Use ITLA for tax years 2006 through 2012)

    • Allocated Tips – (Use ITLA for tax years 2006 through 2012)

  5. All employees must use the current tax preparation software worksheets and forms in lieu of the ITLA tool for the following:

    • 1040 Worksheet 3 - (Use Child Tax Credit, Carryovers TW Worksheet for tax years 2006 through 2012)

    • US Schedule EIC - (Use Earned Income Credit TW Worksheet for tax years 2006 through 2012)

    • Interview - (Use TW Interview Sheet "57 Questions" for tax years 2006 through 2007 – Use TW Interactive Interview Tool for tax years 2008 through 2012)

    • 1099G Worksheet - (Use Unemployment Benefits TW Worksheet for tax years 2006 through 2012)

  6. All other in scope forms and schedules must be prepared using the current tax preparation software. At any time, during return preparation, if a tax law question or clarification of a tax law issue is required, and a Tax Law Category (TLC) exists, it is mandatory that the employee use ITLA. All employees must use the current tax preparation software for the following forms/schedules on every return:

    • Interview Sheet - (Use TW Interview Sheet "57 Questions" for tax years 2006 through 2007)

    • Main Information Sheet - (Use TW Main Information Sheet for tax years 2006 through 2012)

    • Interactive Interview - (Use TW Interactive Interview Tool for tax years 2008 through 2012)

    • Help Me tabs - (Use TW Help Me Tabs for tax years 2008 through 2012)

  7. See Exhibit 21.3.4-11, Return Preparation Tool Clarification Chart for guidance on specific tools to use during return preparation.

  8. Form 8879 Part III, must include the default setting on the ERO's Signature line.

  9. When a determination regarding the taxpayer’s intent to claim inappropriate deductions or credits is made, explain to the taxpayer why the deduction or credit can or cannot be included on his/her return. Cite forms and publications supporting your statements.

  10. If preparing the return, TAC employees may research and verify the CAU and PDT indicators in AMS/IDRS per IRM 21.3.4.5.3, Caution Upon Contact (CAU) and IRM 21.3.4.5.4, Potentially Dangerous Taxpayer at their own discretion.

  11. Review the completed return with the taxpayer.

  12. Taxpayers are to be provided a paper copy of their prepared return and Form 8879, if electronically filed. The Submission ID must be listed on all copies of the Form 8879 prior to the taxpayer’s signature.

  13. DO NOT MAKE CHANGES OR CORRECTIONS TO THE RETURN AFTER THE TAXPAYER LEAVES THE OFFICE. YOU MUST ACCEPT THE RETURN "AS IS."

21.3.4.10.5.1  (10-01-2013)
Return Preparation Quality Review

  1. Once the return is complete, review it to ensure:

    • Correct and full name(s), address and valid TINs are entered

    • Presidential Election Campaign Fund designation is checked

    • Filing Status is correctly checked

    • Personal exemptions are correctly taken

    • All dependents are listed with valid TINs

    • All income is listed on correct line

    • All allowable deductions and credits are taken and appropriate schedules are attached in sequential order

    • Earned Income Tax Credit is calculated correctly

    • The correct tax is listed

    • All withholding, including withholding shown on Form 1099, is claimed

    • Refund or balance due is listed on the correct line

    • If the taxpayer is electing direct deposit of refund, account and routing numbers will be verified (i.e., check or bank statement) and all necessary information is present. Use direct deposit for current year only.

    • Signature documents are signed and dated

    • Occupation is shown

    • Disclaimer is included

    • Form 8879 includes the Declaration Control Number (DCN)

    • "Get the red out" of the software.

21.3.4.10.6  (10-01-2013)
Earned Income Tax Credit (EITC)

  1. For information on EITC eligibility criteria see IRM 21.6.3.4.2.7, Earned Income Tax Credit (EITC).

  2. Earned Income Tax Credit activities will continue to be promoted and emphasized as appropriate. The Additional Child Tax Credit will be combined with EITC activities.

  3. Published materials, such as publications, brochures, and posters that can be used to help promote awareness are to be ordered as soon as they are available.

21.3.4.10.7  (01-30-2012)
Return Preparation Criteria for Taxpayers Affected By Federally Declared Disaster

  1. This section has been added to assist taxpayers directly or indirectly affected by federally declared disasters, as a supplement to IRM 21.3.4.10, Return Preparation Assistance.

    • "Directly" affected taxpayers include taxpayers whose principal residence or principal place of business is located in the federally declared disaster area as defined in IRC 1033(h)(3).

    • "Indirectly" affected taxpayers refer to taxpayers who are relief workers assisting in the covered disaster; any individuals whose principal residence and any business entity whose principal place of business is not located in the covered disaster area but whose records necessary to meet a filing or payment deadline are maintained in the covered disaster area; any estate or trust that has tax records necessary to meet a filing or payment deadline that are maintained in a covered disaster area as well as any individual whose tax professional/practitioner is located in the covered disaster area and who has records necessary to meet a tax deadline; individuals, visiting the covered disaster areas, who were killed or injured as a result of the disaster and its aftermath; any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.

21.3.4.10.7.1  (10-01-2013)
Screening - Disaster Returns

  1. IAR Screening Procedures

    1. If the taxpayer is directly affected by a federally declared disaster, the Scope of Service total income return preparation limitation does not apply.

    2. If the employee needs to confirm the taxpayer was located in a federally declared disaster area, click on the following link for IRS disaster declarations and select the appropriate years, http://www.icce.irs.gov/fema/

      Note:

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

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

      Note:

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

  2. ITAS Screening Procedures

    1. Determine if the taxpayer is directly affected by a federally declared disaster. If so, ask the taxpayer if they have the Volunteer Return Preparation Intake/Interview Sheet from a VITA/TCE Site. If yes, review to include in the return preparation process. See Exhibit 21.3.4-14, Return Preparation Taxpayer Authentication, if a picture ID is not available for the taxpayer and spouse.

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

      Note:

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

    3. If prior year information is needed to prepare the return, the ITAS should print the required information from IDRS.

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

21.3.4.10.7.2  (12-17-2008)
Interview - Disaster Returns

  1. Interview the taxpayer using the IRS Return Preparation Checklist and the Disaster IRS Return Preparation Checklist. See Exhibit 21.3.4-15, Disaster IRS Return Preparation Checklist.

  2. Use information from the volunteer return preparation intake/interview sheet, if the taxpayer provided it, to avoid duplicate questions.

21.3.4.10.7.3  (12-17-2008)
Referral - Disaster Returns

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

21.3.4.10.7.4  (12-17-2008)
Verification/Reconstruction of Income Documents - Disaster Returns

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

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

  3. If the taxpayer does not have these documents and the employer is still in business, has the taxpayer contacted the former employer? Has the former employer provided the income documents? If not, does the taxpayer have check stubs from that employer that can be used to prepare the Form 4852?

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

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

    Note:

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

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

    • See Exhibit 21.3.4-16, Completing Form 4852 – Same Employer-Disaster Returns, if the employer is the same,

    • See Exhibit 21.3.4-17, Completing Form 4852 – Different Employer-Disaster Returns, if the employer is different,

    • See Exhibit 21.3.4-18, Completing Form 4852 - Social Security and Medicare Taxes Withheld-Disaster Returns, to calculate Social Security and Medicare Taxes Withheld,

    • See Exhibit 21.3.4-19, Completing Form 4852 - Federal Income Tax Withholding-Disaster Returns, to calculate Federal Income Tax Withholding,

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

21.3.4.10.7.5  (01-06-2010)
Verification/Reconstruction of Expense Documents - Disaster Returns

  1. The employee should obtain from the taxpayer any expenses for:

    • Schedule A, B (Interest and Ordinary Dividends; ordinary and qualified),

    • Schedule C-EZ, L, M, R, SE,

    • Form 2441, Child and Dependent Care Expenses

    • Form 3903, Moving Expenses

    • Form 4684, Casualties and Thefts

    • Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

    • Form 5695, Residential Energy Credits

    • Form 8606, Nondeductible IRAs

    • Schedule 8812, Child Tax Credit

    • Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989

    • Form 8839, Qualified Adoption Expenses

    • Form 8853, Archer MSAs and Long-Term Care Insurance Contracts

    • Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)

    • Form 8880, Credit for Qualified Retirement Savings Contributions

    • Form 8885, Health Coverage Tax Credit

    • Form 8889, Health Savings Accounts

    • Form 8917, Tuition and Fees Deduction

    • and Social Security.

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

    Note:

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

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

21.3.4.10.7.6  (10-01-2013)
Return Preparation - Disaster Returns

  1. Start federal return preparation in the e-file software per guidelines in IRM 21.3.4.10.5.

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

  3. Use applicable worksheets and ITLA.

  4. If the taxpayer is in a TAC physically located in a federally declared disaster area, complete the Federal and State returns and file electronically. State returns are only completed in TACs that offer state return preparation.

  5. At the TAC employee's discretion, research for CAU or PDT indicators in AMS/IDRS per IRM 21.3.4.5.3, Caution Upon Contact (CAU) and IRM 21.3.4.5.4, Potentially Dangerous Taxpayer may be performed.

  6. For direct deposit of a refund or direct debit for a balance due, the taxpayer may provide the financial institution account information (check or bank statement), orally, or a completed Form 14058, IRS Return Preparation Checklist.

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

21.3.4.10.7.7  (12-17-2008)
Quality Review - Disaster Returns

  1. See IRM 21.3.4.10.5.1 for Return Preparation Quality Review guidelines.

21.3.4.10.7.8  (12-20-2010)
IRS Record Retention Requirements - Disaster Returns

  1. See IRM 21.3.4.10.1.4 for Retention Requirements.

  2. Volunteer return preparation intake/interview sheet must be retained with the IRS Return Preparation Checklist, if used by the IAR or ITAS in the initial screening or interview.

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

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

21.3.4.10.7.9  (12-17-2008)
Taxpayer Record Retention Requirements - Disaster Returns

  1. Taxpayer Record Retention Requirements for Disaster Impacted taxpayers are the same as for non-impacted taxpayers. See IRM 21.3.4.10.1.4, Retention Requirements.

21.3.4.10.7.10  (12-17-2008)
Transmission and Acknowledgements - Disaster Returns

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

21.3.4.11  (03-29-2012)
IMF Entity Overview

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

    1. Name

    2. Address

    3. Taxpayer Identifying Number (TIN)

    4. Date of Birth (DOB)

    5. Spouse’s name

    6. Spouse’s social security number

    7. Filing Status Code (FSC)

    8. Year digits (YD)

    9. Mail Filing requirement (MFR)

    10. SSA, IRS valid and, IMF Name Controls

    11. Scrambled SSN indicator (XXXSSN)

    12. Date of Death (DOD)

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

    1. INOLE

    2. ENMOD

    3. IMFOL(E)

    4. BMFOL(E)

    5. MFTRA "U"

    6. NAMES

    7. NAMEE

21.3.4.11.1  (03-22-2010)
Establishing and Maintaining the Entity Section

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

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

  3. Use Account Management Services (AMS) to update the entity via Update Contact Information box on AMS. This function will prompt you with the appropriate Command Code (CC) to make the requested changes to the taxpayers’ account. CC ENMOD with CC ENREQ generates the input screen for entity changes, CC INCHG/IRCHG. Integrated Automation Technologies (IAT) may also be used to complete address changes.

    Note:

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

  4. For additional instructions see IRM 3.13.5.7.1, Establishing & Maintaining the Entity.

  5. Field Assistance will not change an EIN or change a basic name identity, e.g., from partnership to corporation, or from "Smith" to "Jones" . See IRM 2.4.9.7.2, Changes Specifically Restricted to Designated Service Center Personnel. Route these changes to Entity via Form 8822-B, Change of Address - Business at the Submission Processing Campus.

21.3.4.11.2  (10-01-2013)
Taxpayer Requests for Address Change

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

    1. The new address,

    2. The taxpayer’s full name,

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

    4. The old address,

    5. The social security number or employer identification number.

  2. Ensure you are speaking to the taxpayer or their authorized representative and have followed the disclosure procedures before you input the change, via Account Management Services (using the Update Contact Information button on the Account Summary page of AMS). This feature prompts you for the appropriate IDRS Command Code to use. You may also use Command Code (CC) ENMOD/ENREQ/INCHG/BNCHG via AMS or Integrated Automation Technologies (IAT), to complete your address change request. Follow the procedures located under Address Changes from Oral Statements/Telephone Contact, IRM 3.13.5.27.

  3. If the taxpayer cannot provide complete information (ex. is unsure of the house number) do not change the address. Instead, have the taxpayer complete Form 8822, Change of Address, (or Form 8822-B, Change of Address - Business if for a business) and mail it to the appropriate address as shown on the form.

  4. When there is Integrity & Verification Operation (IVO) involvement which indicates possible Identity Theft, provide and instruct the taxpayer to complete Form 8822 (Form 8822-B).

  5. Do not input an address change on mixed entity or Scrambled SSN accounts. See IRM 21.3.4.11.3, Scrambled SSN and Mixed Entity Procedures.

  6. Address changes can and should be made when an obvious error in the taxpayer name and/or address is shown on the Master Files.

  7. Additional information regarding address changes can be found in IRM 3.13.5.27, Entity Changes from Oral Statements. Detailed input instructions can be found in IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    Caution:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

21.3.4.11.3  (10-01-2010)
Scrambled SSN and Mixed Entity Procedures

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

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

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

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Prepare Form e-4442 in AMS. The CI Fraud Detection Center fax numbers are located on SERP under http://serp.enterprise.irs.gov/databases/who-where.dr/referral_fax_numbers.htm (choose your site and select CI).

    Note:

    Additional instructions:
    IRM 21.6.2.4.2, Multiple Individuals Using the Same TIN
    IRM 21.6.2.4.2.1, Telephone Inquires Regarding MXEN, MXSP, IDT1, IDS1, IDT3, IDS3, IDT 6, IDT8, IDT9 IDS9, and Scrambled Cases
    IRM 21.4.6.5.22, Mixed Period Cases
    and IRM 21.6.2.4.3, Mixed Entity Procedures.


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