Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 4. Field Assistance (Cont. 2)

21.3.4  Field Assistance (Cont. 2)

21.3.4.7 
Receipt of Payments

21.3.4.7.8  (01-20-2010)
Restitution Payments

  1. IRS has a specific office to collect and process all criminal restitution payments in which the IRS is the victim of a crime. If criminal restitution payments are misrouted to an IRS office or campus, use Form 3210 to list the payment and transship via overnight traceable mail method to the Service Center Accounting Operations unit address below:
    Internal Revenue Service
    IRS – RACS
    Attn: Mail Stop 6261, Restitution
    333 Pershing Ave
    Kansas City, MO 64108.

21.3.4.7.9  (02-03-2012)
Indemnity Agreements

  1. The Government Losses in Shipment Act (GLISA), 40 U.S.C. 17301-17309, authorizes the issuance of indemnity agreements by the Bureau of Public Debt (BPD) to replace negotiable securities or instruments, such as cashier's checks, money orders, Treasury Bonds, etc. if the taxpayer has actually paid the money. Most situations occur in TACs when the taxpayer presents payment for tax and it is lost by an IRS employee or by UPS in route to the Submission Processing Campus. TAC employees are responsible for notifying the taxpayer of the loss and providing assistance in recovering the payment. If form of payment was made by cashier's checks, money orders, Treasury Bonds, etc., and indemnity agreement may need to be signed to assist the taxpayer in recovering the lost payment. In addition, follow procedures in IRM 21.3.4.7.5, Loss or Shortage of Payment. Replacement for the loss should be obtained without an indemnity agreement if possible. Many taxpayers use postal money orders that can be traced and a replacement can be obtained by completing P.S. 6401. A replacement is issued within three weeks without an indemnity agreement. If form of payment was by personal check which has not been cashed, advise taxpayer to stop payment on check and reissue new payment. Indemnity agreements are not provided for personal checks.

  2. Commercial banks are requesting signatures on indemnity for cashier's checks. These requests are sent for replacement cashier's checks that were not received by IRS or lost by IRS and have not been submitted for payment to the issuing institution. The bank will not issue a replacement check until an indemnity agreement is issued by BPD. Refer to IRM 21.5.7.4.7.7 for further guidance.

  3. TACs that receive indemnity agreement requests from taxpayers should forward the request to the Area Director, FA, for approval. The request should include the following information:

    • Taxpayer name and TIN, or ITIN

    • Date the instrument was issued

    • Amount of the Instrument

    • The financial institution name and address

    • Address where to mail the replacement check. (Usually the lockbox of the center that process your payments - See IRM 21.3.4.7.3.6, Addresses for TAC Remittances )

    • Documents provided by the taxpayer or third party

    • The efforts to obtain a replacement

    • Written request for an indemnity agreement from the financial institution

    • A copy of the negotiable security or instrument

  4. Inform the taxpayer that it will take 60 to 90 days to process an indemnity agreement. Under no circumstances will it be reissued payable to the taxpayer.

  5. Once a formal request for an indemnity is received from the bank the request should be submitted to the Losses and Shortages Analyst at:

    Internal Revenue Service
    Losses & Shortages Analyst
    Attn: Susan N. Hankerson
    2970 Market St 3B.G04.144
    Philadelphia, PA 19104

  6. If the taxpayer incurs a bank charge in obtaining replacement funds, refer to IRM 21.5.3.4.11, Reimbursement of Bank Charges – Form 8546, for instructions on how the taxpayer can file for reimbursement. See IRM 1.2.14.1.11, Policy Statement 5-39, for guidance on taxpayer claims for reimbursement of bank charges due to loss or misplacement of taxpayer checks.

  7. In rare cases where the TP repaid the funds/payment and the financial institution will not issue a replacement check or money order unless they have an indemnity agreement, an affidavit of non-receipt may be more appropriate. Refer to IRM 21.5.7.4.7.7, Cashier's Check or IRM 21.5.7.4.7.8, Money Orders for further guidance.

21.3.4.7.10  (10-01-2011)
SB/SE Payments

  1. The following procedures will be followed for accepting payments 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 payment.

    2. If SB/SE employee/representative cannot be located:
      Process the payment using FA procedures, provide the SB/SE employee notification of the payment via e-mail including the amount, date, the transaction code used to post it and the period it was applied to. Send the e-mail secured and request a read receipt. Mail the SB/SE employee a copy of the posting voucher and check. If your office has a scanner, you can scan these items and include on your e-mail. Do not send the taxpayer away without accepting the payment.

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.

    3. Give Part 2 of F. 809 to the taxpayer. If an unauthorized third party makes the payment and the F. 809 discloses new information to he third party, then mail Part 2 of the F. 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 21.1.3.4.7.3.1.

    5. Complete a separate F. 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 Exhibit 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 F. 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 F. 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 F. 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 F. 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  (02-28-2012)
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 F. 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 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 Exhibit 21.3.4-44), and CC TXCTL (See Exhibit 21.3.4-45), to the reviewer notifying them that this has been completed.

  5. The input person will also return the copies of the F. 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 F. 809, he/she will give the Reviewer the original Parts 1 and 3 of the F. 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 can not be completed via OTCnet, then (See Exhibit 21.3.4-19), Deposit Ticket would be manually completed.

    Note:

    FA employee must obtain approval from Local Security Administrator (LSA), normally your local remittance Analyst. The LSA will provide a six digit deposit ticket number to be included on the Form SF 215A. (See IRM 21.3.4.7.13 for completion of Form SF 215A).

  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. F. 10160 is attached to the OUTSIDE of the deposit bag. See below for preparation of F. 10160.

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

    • Must maintain one carbon copy of F. 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 F. 10160 with bank representative's signature, date, and time deposit was received by the depository.

    • It is critical to reconcile each day's F. 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 F. 10160 is not returned from the bank as required immediately notify the courier service’s help desk and the Area Remittance Analysts.

      Note:

      Do not attempt to resolve courier service issues, including those relative to the F. 10160, with the courier. All courier service issues will be reported to the courier service’s help desk and Area Remittance Analyst. If problem persist, the Area Remittance Analyst will refer to the Headquarters Remittance Project Manager.

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

    • Must retain for 3 years from date of deposit of F. 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 Exhibit 21.3.4-44), and CC TXCTL (See Exhibit 21.3.4-45),

    • Copy of Approved Deposit Slip from OTCnet (See Exhibit 21.3.4-48)

    • View Submitted Deposit (See Exhibit 21.3.4-47) 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 Exhibit 21.3.4-48)

  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 e-mail 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 3.0.167.5.1, 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 F. 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. F. 809 Part 1 goes to the IDRS inputter to credit the taxpayer $200, which matches the F. 809 receipt. OTCnet deposit is prepared for $160 to reflect the exact amount of cash that is going to the bank. F. 2424 is signed by the manager, and provided with the Accounting Package, along with an explanation. Call 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 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 F. 2424 is required within 24 hours. e-mail the digitally signed F. 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 Utilized

  1. Command Codes EXTCL, SEQNC, STBLK, PAYMT, PYBAL, TXCTL, CRBLK, and VARIA are utilized 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 Exhibit 10.8.34-9.

  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  (01-06-2011)
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.

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 customer accounts for the exact amount of cash received from the customer. 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 F. 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 e-mail to the Accounting official that contacted the TAC. See Instructions for F. 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 F. 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  (04-01-2011)
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 for further instructions and approval for SF 215A, Manual Deposit Form (see Exhibit 21.3.4-19). 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/tganet/contingency_document1208.doc

    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 e-mail when the OTCnet system is down. Immediately contact your Area Remittance Analyst to advise them that a paper SF 215A, Deposit Ticket which must accompany the deposit, needs to be prepared because OTCnet is unavailable.
    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 that a paper SF 215A, Deposit Ticket which must accompany the deposit, needs to be prepared because the TAC is unable to access OTCnet due to a problem with the Server.
    A 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 that a paper SF 215A, Deposit Ticket which must accompany the deposit, needs to be prepared because OTCnet is down.
    A 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 that a paper SF 215A, Deposit Ticket which must accompany the deposit, needs to be prepared because OTCnet is down. Once the OTCnet system is restored, the Deposit Preparer must delete the saved draft of the OTCnet deposit from OTCnet.
    A 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 that a paper SF 215A, Deposit Ticket which must accompany the deposit, needs to be prepared because OTCnet is down. 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.

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 Courier Issue Log. (Exhibit 21.3.4-46)

    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 can not 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 F 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 $4.00 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  (10-01-2011)
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 F. 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 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 Exhibit 21.3.4-44), and CC TXCTL (See Exhibit 21.3.4-45), to the reviewer notifying them that this has been completed.

  5. The input person will also return the copies of the F. 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 F. 809, he/she will give the Reviewer the original Parts 1 and 3 of the F. 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 can not be completed via OTCnet, then (See Exhibit 21.3.4-19), Deposit Ticket would be manually completed.

    Note:

    FA employee must obtain approval from Local Security Administrator (LSA), normally your local remittance analyst. The LSA will provide a six digit deposit ticket number to be included on the Form SF 215A. (See IRM 21.3.4.7.13 for completion of Form SF 215A).

  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 Exhibit 21.3.4-44), and CC TXCTL (See Exhibit 21.3.4-45),

    • Copy of Approved Deposit Slip from OTCnet (See Exhibit 21.3.4-48)

    • View Submitted Deposit (See Exhibit 21.3.4-47) 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 e-mail 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

    • Copy of Confirmed OTCnet Deposit Slip (See Exhibit 21.3.4-48)

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. 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  (05-12-2012)
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.

    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. Forms 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 21.3.4.18.1(3), TAC Employees’ Responsibilities for Form 2290, for information to provide to 2290 Tax Preparers.

21.3.4.8.1  (02-16-2012)
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. The F. 3210 for all returns, extensions or documents with PII on them must include the taxpayer's Name Control and TIN (last 4 digits only) for PII tracking purposes. If the taxpayer is dropping off the document at the IAR desk, the IAR may make a copy of the front page with the PII information on it, attach it to the office copy of the F. 3210 and list the number of returns/documents on the F. 3210. If the taxpayer needs to see an ITAS for other reasons, the ITAS may complete their own F. 3210 during the open contact and include the PII information. They have the option of attaching a copy of the first page of the document (which includes the PII information) to the office copy of the F. 3210 and list the number of documents that was sent with that F. 3210. Managers have the option to have one employee complete the F. 3210 as long as it includes the PII information.

    Note:

    Tax returns received with remittance must be transmitted on a F. 795-A. If you receive a return with remittance, where the remittance was processed using RS-PCC, Stamp the return with an Official "Received with Remittance" stamp. The return should then be submitted for processing on F. 3210. (See IRM 21.3.4.8.4, Reviewing and Shipping Form 3210 for Returns without Payments and Returns Received with Payments processed using RS-PCC except Form W-7 and Form 2290.

  5. All official IRS stamps should be stored in a locking container when not in use.

  6. Mail tax returns without a remittance on a completed F. 3210, Document Transmittal, to the appropriate Submission Processing Campus each day.

    Note:

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

  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).

21.3.4.8.2  (01-30-2012)
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.

  2. Do not stamp a "duplicate" tax return which is completed in pencil.

  3. See IRM 21.3.4.8, Receipt of Tax Returns, for returns received from tax 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  (04-03-2009)
Receipt of Delinquent Returns

  1. When receiving a delinquent return 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 but did not file the return, 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 Service (AMS) on IDRS or request the input by preparing an in-house referral. See Exhibit 21.3.4-18 for Field Assistance Closing Codes - Delinquent Returns.

  3. See IRM 5.19.2.6, 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 Exhibit 4.13.7-1, ASFR – Reconsideration Returns – Centralized Processing Sites.

    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 21.3.4-18, 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 21.3.4.3.7.3.3.

    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 21.3.4-18 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 5.19.2.6.6.1.2, IMF - TIN and Entity Problem, Taxpayer Filed a Joint Return.

    Note:

    IRM 5.19.2.6.4 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  (10-01-2012)
Reviewing and Shipping Form 3210 for Returns without Payments and Returns Received with Payments processed using RS-PCC (except Form W-7 and Form 2290)

  1. Returns without payments and Returns whose payments have been processed using RS-PCC will be routed to Submission Processing via Form 3210. List all Form 3210/795-As on the Form 795-A/3210 Follow-up Review Log.

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

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

  4. Every effort should be made to transship returns without payments on the same day received at the receiving site via United Parcel Service (UPS). Shipping by UPS Ground is acceptable. 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. Please ensure you use the Campus Ship labels from the UPS website.

  5. Mail returns with RS-PCC and non-remittance to the appropriate Submission Processing Campus each day. Refer to IRM 21.1.7-2, Submission Processing Stop Numbers for Routing Non-Remit Documents for the appropriate address and stop number.

    Note:

    Do not use these Stop numbers for Form W-7 and Form 2290 returns. Use the mailing address in the appropriate IRM sections.

  6. 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).

  7. The Submission Processing Campus (SPC) should provide the acknowledged copy of the F. 3210 within thirty (30) calendar days. When missing acknowledgement copies of the F. 3210 are identified, the manager or their designee will follow-up with the SPC via e-mail, Fax or telephone within ten (10) working days after the thirty days has expired; document follow-up actions taken to resolve the missing acknowledgements on the Form 795-A/3210 Follow-up Review Log located at http://win.web.irs.gov/field/fadocs/jobaids/Form_795_3210_Follow-up_Review_Log.pdf.

  8. If the F. 3210 has not been acknowledged and is discovered to be lost, report the incident within one hour of identifying to:

    • Your Manager

    • TIGTA at 1–800-366-4484

    • Report loss of personally identifiable information (PII) to the Computer Security Incident Response Center (CSIRC) at 1–866-216-4809, TTY access (Federal Relay Service) 1-800-877-8339.

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  (10-01-2012)
Taxpayer Requests for 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 office.

  2. Required Product List - these products are required to be stocked in every TAC. See IRM 21.3.4.9.1, Ordering and Stocking Forms and Publications. If a taxpayer requests a product from this list that is not yet stocked but is available, offer to:

    • Order the product using ELITE on Account Management Service (AMS). See instructions at http://serp.enterprise.irs.gov/databases/local-sites-other.dr/elite.dr/elite_instructions.htm.

    • If you do not have IDRS access, orders can be placed using Forms and Publications by U.S. Mail at http://www.irs.gov/formspubs/page/0,,id=10768,00.html.

    • Print the product for the taxpayer if ten pages or less.

    Note:

    For lengthy products (more than ten pages), the TAC employee will order the product using ELITE (or Forms and Publications by U.S. Mail if no IDRS access).

    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.

  3. Discretionary Product List - these products are not required to be stocked in every TAC. Employees may order and stock these items at their discretion based on taxpayer demand. If a taxpayer requests a product that is not on the required list and is not stocked but is available, offer to:

    • Access and download the forms and/or publications via the internet at: www.IRS.gov/formspubs.

    • Obtain forms and/or publications by calling 1–800-TAX-FORM (829-3676).

    Note:

    Current year forms (not publications) may be printed for the taxpayer even if they are not on the Required Product List. Printing tax products in TACs should be done on a limited basis, and will not be used in lieu of stocking forms, instructions and publications.

    Exception:

    Relevant sections of publications that are needed to answer tax law questions may be printed if not available in the TAC.

  4. TACs with FSA kiosks available can offer the taxpayer to use it for obtaining products not stocked in the TAC. For procedures on using the FSA kiosks, see IRM 21.3.4.2.3, Facilitated Self Assistance.

  5. 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  (10-01-2012)
Ordering and Stocking Forms and Publications

  1. TAC employees' duties include ordering and stocking forms and publications for the public.

  2. TACs stock forms, instructions and publications using the products on the TAC Product List. See the TAC Program page at http://publish.no.irs.gov/distsys/pod/pod.html to view the TAC Product List. The TAC Product List consists of two categories:

    • Required: Current year tax products listed in this category must be stocked in each TAC. If the demand for this product is low in your TAC, a minimal paper inventory is encouraged.

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

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

  4. Initial filing season products are shipped to TACs based on the quantities specified in the Initial Product Order (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).

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

    1. Balance On Hand Survey - This survey is issued to all TACs after filing season to determine the number of full cartons, or equivalent quantities, of forms, instructions and publications. A notification will be issued when the survey needs to be completed. Refer to the TAC Program page for instructions on the survey.

    2. Initial Product Order Survey – This survey is used to order initial quantities of forms, instructions and publications needed for the next Filing Season. The survey is conducted annually over a three-week period. A TAC alert will be issued when this survey can be accessed. These products are scheduled for delivery to your TAC beginning in the fall. This survey information can be printed or saved as an Excel file to be used to verify the quantities of initial order shipments. Refer to the TAC Program page for information and instructions on the survey.

    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 ordering (Product Order Information) and delivery issues. See http://publish.no.irs.gov/distsys/pod/delivery_contact.html"Who Do I Contact Regarding Deliveries?"

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

  8. Most TACs have two order point numbers (OPN):

    • nnnnn-6699 – Use the 6699 OPN to order forms and publications for public distribution only.

    • nnnnn-5699 – Use the 5699 OPN to order administrative and internal use forms and documents including IRMs.

  9. Only accept deliveries of boxes which have your order point number on a computer generated label.

    Caution:

    IF YOU ARE RESPONSIBLE FOR OPENING PACKAGES, REFER TO IRM 21.1.3.10.8. IF ANY PACKAGE LOOKS SUSPICIOUS, DO NOT OPEN IT.

  10. 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.

  11. 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 at http://win.web.irs.gov/field/FA_jobaids.htm, Field Assistance Job Aids under Miscellaneous - Forms Rack Inserts. The three inserts available for order are: "Out of Stock" , "Re-Stock" and "Not Available Until" .

  12. TACS form racks label holders will be as follows:

    • 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.

  13. ELMS Course 2546, Procedures On Ordering Forms (POOF) will be used to train employees on these procedures.

21.3.4.10  (04-18-2012)
Return Preparation Assistance

  1. Return preparation is a need based courtesy service that will be provided to qualifying taxpayers to prepare a correct return. 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. During the filing season, priority for return preparation service will be as follows:

    1. Current year returns (Federal and State)

    2. Return priority criteria (Given as much as possible)

    3. Taxpayer located in Federally Declared Disaster Area

    4. Taxpayers with disabilities

    5. Elderly taxpayers, particularly those traveling a distance

  3. Return Exception Criteria (Approved by Group Manager)

    • Cancellation of Debt, such as Foreclosure

    • Military, Spouse in a combat zone

    • Delinquent return impacting a Federal lien

    • Delinquent return with an impending statute expiration

    • Other hardship – Managerial discretion

  4. During the non-filing season, priority for return preparation service will be as follows:

    1. Current year returns (Federal and State)

    2. Prior year returns (Federal)

    3. Amended returns

  5. Return Priority Criteria (Given as much as possible)

    • Taxpayer located in Federally Declared Disaster Area

    • Taxpayers with disabilities

    • Elderly taxpayers, particularly those traveling a distance

  6. 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

  7. 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 2012 we may prepare the delinquent tax year 2005 return until April 15, 2012. After April 15, 2012, we may prepare the delinquent tax years 2006 through 2010 and the current year tax return 2011.

    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.

  8. Use of direct deposit will also be encouraged, if applicable.

  9. 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. Only current year individual income tax returns are filed electronically, using the electronic signature method (Practitioner PIN).

  10. 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 Exhibit 21.3.4-1, Scope of Services and the Field Assistance Scope Search Engine in ITLA http://gatekeeper.web.irs.gov/ITLA/fa_scope_master_index.aspx.

  11. 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 21.3.4.25 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.

  12. 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.

  13. Employees may research and verify the PDT and CAU indicators in AMS/IDRS for return preparation, per IRM 21.3.4.26, Disclosure.

  14. Current year returns are e-filed through October 15. State returns will be prepared for the current year only until October 15.

  15. Employees should inform taxpayers to check the status of their current year individual federal income tax refunds and credits:

    • Online at http://www.irs.gov/individuals/article/0,,id=96596,00.html"Where's My Refund?"

    • At the toll-free number, 1-800-829-4477

    • At the Refund Hotline, 1-800-829-1954

    • Use the IRS2Go phone application from an iPhone/iTouch or Android.

      Note:

      See IRM 21.4.1.3, Refund Inquiry Response Procedures, for current information about checking your refund by using the sources referenced above.

    Taxpayers may access their individual refund information by entering three personal identifiers:

    1. Social Security Number (SSN)

    2. Filing Status

    3. Exact amount of the refund from the tax return

    Note:

    Prior year individual federal income tax refunds and credits may be checked at the toll free number 1-800-829-1040.

  16. 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.

  17. 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:

    • Volunteer Income Tax Assistance (VITA)/Tax Counseling for the Elderly (TCE) at http://stars.enterprise.irs.gov/SiteList/Search.aspx,

    • NAEA at 1–800-424-4339 (24 hours) or www.naea.org.

    • AICPA at www.aicpa.org.

  18. 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.

  19. Return preparation is completed "interview style" using the Interactive Interview in the return preparation software (Use TW Interview Sheet "57 Questions" for tax years 2005 through 2007 – Use TW Interactive Interview Tool for tax years 2008 – 2011).

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

  21. During return preparation, if a taxpayer indicates they are impacted by Identify Theft; refer to IRM 21.3.4.32 for appropriate procedures.

  22. 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 (revision December 2011), must be attached to their paper return.

  23. State Returns will be prepared for the current year until October 15. Prior year and amended state returns are not prepared.

  24. 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.

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

21.3.4.10.1  (03-23-2012)
Electronic Filing

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

  2. Paper Return Preparation for prior year, amended, and other return preparation circumstances is available at all locations. Paper Return Preparation for the current year may be done at the Puerto Rico TAC as needed. Exception requests may be submitted for any office after the Area analysis and recommendation has been completed. In addition, return preparation may be available a limited number of days per week in the TAC. All exceptions and limited return preparation days must be approved by the Director of Field Assistance. This information will be posted on IRS.gov.

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

  4. 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.

  5. 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

  6. Taxpayers requesting proof of filing are mailed an acknowledgement (Form 9325) 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.

  7. Additional return preparation guidance may be found in Doc. 12275, Field Assistance Taxpayer Assistance Center Electronic Filing Kit & Guide (EKG), located at http://win.web.irs.gov/field/fadocs/Return_Prep_12275_EKG_112010.pdf.

21.3.4.10.1.1  (01-30-2012)
Roles and Responsibilities

  1. TAC e-file coordinators are responsible for:

    • Communicating issues and problems to management

    • Ensuring training for end-users

    • Maintain a consolidated list of employee PINs

    • Timely administration of the e-file process

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

    • Set up and register software on TAC computers, establish appropriate user authorities, initial forms, setting tax form defaults, Document Control Number (DCN) 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 (i.e., Social Security cards, if available, W-2s, etc.).

    • Researching and verifying the PDT and CAU indicators in AMS/IDRS per IRM 21.3.4.26 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  (11-27-2007)
Transmission and Acknowledgement

  1. Current year returns 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.

  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.

21.3.4.10.1.3  (12-15-2011)
EITC Indicator for e-file Returns

  1. Field Assistance EITC pre-certification claimant procedures will not be applicable for Tax Year 2011.

21.3.4.10.1.4  (12-20-2010)
Rejects

  1. All procedures for resolving rejects will be in compliance with Publication 1345. This Handbook, as well as Publication 1345-A, Electronic Filing Season Supplement For Authorized IRS e-file Providers, and Publication 1346, Filing Season Supplement for Authorized IRS e-file Providers Tax Year 2005, will be accessible in every TAC. E-file reject codes are found in Publication 1345-A.

  2. 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 21.3.4-11, Taxpayer Assistance Center Reject Tracking Control Log Time Frame and History Guidelines, and the Field Assistance Taxpayer Assistance Center Electronic Filing Kit and Guide for the required documentation.

  10. If the return was electronically filed on April 15 or October 15, and cannot be resubmitted electronically, the return must be filed on paper. See IRM 3.30.123.12.2, Electronic Postmark and 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. Document 12275 at http://win.web.irs.gov/field/fadocs/EKG_112009.pdf, Field Assistance Taxpayer Assistance Center Electronic Filing Kit and Guide, 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.

21.3.4.10.1.5  (03-23-2012)
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 F. 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 F. 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 F. 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

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

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

  7. Ensure F. 3210 acknowledgements are received within 30 calendar days of submission. Contact Submission Processing Campus, Receipt and Control Section, to track submitted F. 3210 and F. 8453. Retain the F. 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 October 20th 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 10.2.13.3.2.3, 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 10.2.13.3.2.5, 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 21.3.4-51, Field Assistance, Retention Requirement and Shipment Table to clarify the record retention specifics.

21.3.4.10.2  (04-18-2012)
Return Preparation Criteria

  1. During the filing season, priority for return preparation service will be as follows:

    1. Current year returns (Federal and State)

    2. Return Preparation Priority Criteria (Given as much as possible)

    3. Taxpayer located in Federally Declared Disaster Area

    4. Taxpayers with disabilities

    5. Elderly taxpayers, particularly those traveling a distance

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

    • Cancellation of Debt, such as Foreclosure

    • Military, Spouse in a combat zone

    • Delinquent return impacting a Federal lien

    • Delinquent return with an impending statute expiration

    • Other hardship – Managerial discretion

  3. During the non-filing season, priority for return preparation service will be as follows:

    1. Current year returns (Federal and State)

    2. Prior year returns (Federal)

    3. Amended returns

  4. Return Preparation Priority Criteria (Given as much as possible)

    • Taxpayer located in Federally Declared Disaster Area

    • Taxpayers with disabilities

    • Elderly taxpayers, particularly those traveling a distance

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

    • Military, Spouse in a combat zone

    • Cancellation of Debt, such as Foreclosure

    • Delinquent return impacting a Federal lien

    • Delinquent return with an impending statute expiration

    • Amended returns nearing statute expiration

    • Other hardship – Managerial discretion

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

    • Individual income tax returns with total income of $50,000 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 8453 and mailed to the campus that acknowledged receipt of the electronic return data. 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

    • 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)

    • Form 8812 (Additional 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 1040-ES

    • Form 1040-V

    • Form 1040X meeting the income limit criterion


    Puerto Rico TAC only-

    • Form 1040 PR

    • Form 1040SS

    • Form 1040-ES (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

  7. See ITLA and Exhibit 21.3.4-1, SCOPE OF SERVICES for forms and schedules that are in-scope for return preparation.

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

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

  10. 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 2012 we may prepare the delinquent tax year 2005 return until April 15, 2012. After April 15, 2012, we may prepare the delinquent tax years 2006 through 2010 and the current year tax return 2011.

    Note:

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

  11. 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. For 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."

  12. 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 21.3.4.14.3(8), 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  (01-30-2012)
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 2011, VITA will provide assistance if the income is $50,000 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 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 Volunteer Site Listing at 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  (01-30-2012)
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 set a return preparation contact). 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 Social Security Number (SSN) card or official IRS letter, obtain the SSN from the taxpayer and follow the Return Preparation Taxpayer Authentication procedures in Exhibit 21.3.4-20, Step 1 and any other applicable sections, to confirm the SSN matches.

      Exception:

      If the taxpayer does not have a Social Security Number (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 21.3.4-20, 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 Social Security Number 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 21.3.4.20, 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 21.3.4-20, 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.

    • Proof of account at financial institution 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/article/0,,id=107626,00.html 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. See IRM 1.4.11.11, Qmatic, for Qmatic standardized ticketing guidelines.

21.3.4.10.5  (01-30-2012)
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 the 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 F. 8879 and the F. 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

    • Schedule M - Making Work Pay and government Retiree Credits

    • 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 2005 through 2007 - Use TW Help Me Tabs for tax years 2008 through 2011)

    • Dependents - – (Use ITLA for tax years 2005 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2011)

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

    • Filing Status: - (Use ILTA for tax years 2005 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2011)

    • Dependents:- (Use ILTA for tax years 2005 through 2007 – Use TW Help Me Tabs for tax years 2008 through 2011)

    • Charitable Contributions: - (Use ITLA for tax years 2005 through 2011)

    • Casualties and Thefts: - (Use ITLA for tax years 2005 through 2011)

    • Education Credits: - (Use ITLA for tax years 2005 through 2011)

    • Medical Expenses: - (Use ITLA for tax years 2005 through 2011)

    • Home Mortgage Interest:- (Use ITLA for tax years 2005 through 2011)

    • State and Local Taxes: - (Use ITLA for tax years 2005 through 2011)

    • Child and Dependent Care Expenses: - (Use ITLA for tax years 2005 through 2011)

    • Qualified Adoption Credits: - (Use ITLA for tax years 2005 through 2011)

    • Social Security: - (Use ITLA for tax years 2005 through 2011)

    • Student Loans: - (Use ITLA for tax years 2005 through 2011)

    • Deductible and Nondeductible IRA: - (Use ITLA for tax years 2005 through 2011)

    • Educator Expense: - (Use ITLA for tax years 2005 through 2011)

    • Education Savings Accounts (ESA and QTP): - (Use ITLA for tax years 2005 through 2011)

    • Tuition and Fees: - (Use ITLA for tax years 2005 through 2011)

    • Cancellation of Debt: - (Use ITLA for tax years 2005 through 2011)

    • Allocated Tips – (Use ITLA for tax years 2005 through 2011)

  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 2005 through 2011)

    • US Schedule EIC - (Use Earned Income Credit TW Worksheet for tax years 2005 through 2011)

    • Interview - (Use TW Interview Sheet "57 Questions" for tax years 2005 through 2007 – Use TW Interactive Interview Tool for tax years 2008 through 2011)

    • 1099G Worksheet - (Use Unemployment Benefits TW Worksheet for tax years 2005 through 2011)

  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 2005 through 2008)

    • Main Information Sheet - (Use TW Main Information Sheet for tax years 2005 through 2011)

    • Interactive Interview - (Use TW Interactive Interview Tool for tax years 2008 through 2011)

    • Help Me tabs - (Use TW Help Me Tabs for tax years 2008 through 2011)

  7. See Exhibit 21.3.4-51, 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 PDT and CAU indicators in AMS/IDRS per IRM 21.3.4.26 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 Declaration Control Number (DCN) must be listed on all copies of the F. 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  (12-20-2010)
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

    • 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  (12-17-2008)
Earned Income Tax Credit (EITC)

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

21.3.4.10.7  (10-01-2011)
Extension of Time to File

  1. For information regarding extension of time to file, see IRM 20.1.2.1.3.1, Extension of Time to File.

21.3.4.10.8  (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.

21.3.4.10.8.1  (01-30-2012)
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 21.3.4-20, Disaster 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.

21.3.4.10.8.2  (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 21.3.4-21, Combat Zone Exclusion of Income.

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

21.3.4.10.8.3  (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.

21.3.4.10.8.4  (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 F. 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 F. 4852 using the following exhibits as appropriate.

    • See Exhibit 21.3.4-22, Completing Form 4852 – Same Employer-Disaster Returns, if the employer is the same,

    • See Exhibit 21.3.4-23, Completing Form 4852 – Different Employer-Disaster Returns, if the employer is different,

    • See Exhibit 21.3.4-24, Completing Form 4852 - Social Security and Medicare Taxes Withheld-Disaster Returns, to calculate Social Security and Medicare Taxes Withheld,

    • See Exhibit 21.3.4-25, 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).

21.3.4.10.8.5  (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), C-EZ, L, M, R, SE, Form 2441, Form 3903, Form 4684, Form 5329, Form 5695, Form 8606, Form 8812, Form 8815,Form 8839, Form 8853, Form 8863, Form 8880, Form 8885, Form 8889, Form 8917, 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.

21.3.4.10.8.6  (04-22-2011)
Return Preparation - Disaster Returns

  1. Start federal return preparation in the e-file software with the Interview Sheet (when the Interactive Interview and Help Me tabs are not available).

  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 TAC employee's discretion, research for PDT or CAU indicators in AMS/IDRS per IRM 21.3.4.26 may be performed.

  6. For direct deposit of a refund or direct debit for a balance due, if the taxpayer does not have proof of an existing bank account, which is either a bank statement or a check, the taxpayer may provide that information orally. Deputy Commissioner for Services and Enforcement has approved a waiver which does not require physical documentation. See Exhibit 21.3.4-26, for additional information.

  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.

21.3.4.10.8.7  (12-17-2008)
Quality Review - Disaster Returns

  1. See IRM 21.3.4.10.5.1 for Quality Review guidelines.

21.3.4.10.8.8  (12-20-2010)
IRS Record Retention Requirements - Disaster Returns

  1. See IRM 21.3.4.10.1.5 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.

21.3.4.10.8.9  (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 21.3.4.10.1.5, Retention Requirements.


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