21.5.1  General Adjustments

Manual Transmittal

August 30, 2013

Purpose

(1) This transmits a revised IRM 21.5.1, General Adjustments.

Material Changes

(1) Various grammatical, editorial, and link corrections throughout IRM 21.5.1. Updated Policy Statement P-6-12 to P-21-3 throughout IRM.

(2) IPU 13U0061 issued 01-07-2013 IRM 21.5.1.4.2.3 Added scanning instructions for Form 14039, Identify Theft Affidavit

(3) IPU 13U1052 issued 06-05-2013 IRM 21.5.1.4.2.3 Updated scanning information for ID Theft cases

(4) IRM 21.5.1.4.2.3 Added instructions when a case is received in ICT from a different function.

(5) IPU 13U0579 issued 03-21-2013 IRM 21.5.1.4.2.3.1 Added scanning information for carryback program

(6) IPU 13U0937 issued 05-17-2013 IRM 21.5.1.4.2.3.1 Updated scanning information for carryback program

(7) IPU 13U0579 issued 03-21-2013 IRM 21.5.1.4.10 Clarified classified waste instructions

(8) IRM 21.5.1.5.1 Added reminder about taxpayer rights to file suit pursuant to IRC Section 6532(a)

(9) IPU 13U0579 issued 03-21-2013 IRM 21.5.1.5.2 Updated exhibit - added Ogden campus for International business taxpayers (BMF).

(10) IPU 13U0061 issued 01-07-2013 IRM 21.5.1.5.9.1 Changed CSR screening process.

(11) IPU 13U1235 issued 07-12-2013 IRM 21.5.1.5.9.1 Added program code for screening process.

(12) IPU 13U1235 issued 07-12-2013 IRM 21.5.1.5.9.2 Added new program code information for screening process.

(13) IPU 13U0061 issued 01-07-2013 Exhibit 21.5.1-1 Added scanning information for Form 14039, Identify Theft Affidavit

(14) IPU 13U1052 issued 06-05-2013 Exhibit 21.5.1-1 Updated scanning information for Form 14039, Identify Theft Affidavit

(15) IPU 13U0579 issued 03-21-2013 Exhibit 21.5.1-1 Added scanning information for International BMF correspondence

(16) IPU 13U0579 issued 03-21-2013 Exhibit 21.5.1-1 Changed name of organization from AMTAP to IVO

(17) IPU 13U0061 issued 01-07-2013 Exhibit 21.5.1-2 Changed CSR screening process

(18) IPU 13U1052 issued 06-05-2013 Exhibit 21.5.1-2 Updated scanning information for Form 14039, Identify Theft Affidavit

(19) IPU 13U1235 issued 07-12-2013 Exhibit 21.5.1-2 Added new program and category code information for screening process.

(20) IPU 13U1257 issued 07-18-2013 Exhibit 21.5.1-2 Clarified Quick Closures Criteria

(21) IPU 13U0872 issued 05-07-2013 Exhibit 21.5.1-3 Added new exhibit for IMF CSR Screener Procedural Guidance

(22) IPU 13U1235 issued 07-12-2013 Exhibit 21.5.1-3 Added new program and category code information for screening process.

Effect on Other Documents

IRM 21.5.1 dated August 28, 2012 (effective October 1, 2012) is superseded. The following IRM Procedural Updates (IPUs), issued between January 7, 2013 and July 18, 2013, have been incorporated into this IRM: 13U0061, 13U0579, 13U0872, 13U0937, 13U1052, 13U1235, and 13U1257.

Audience

All employees performing account work.

Effective Date

(10-01-2013)

Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division

21.5.1.1  (10-17-2006)
General Adjustments Overview

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

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

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

    • Processing errors on returns

    • Missing schedules

    • Claims

    • Amended returns or

    • Internal Transcripts

21.5.1.3  (10-27-2010)
General Adjustments — Research

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

    List of Reference IRMs List of Reference IRMs
    IRM 3.8.46.1, Discovered Remittances IRM 21.5.2, Adjustment Guidelines
    IRM 5.19, Liability Collection IRM 21.5.3, General Claims Procedures
    IRM 20.1, Penalty Handbook IRM 21.5.4, General Math Error Procedures
    IRM 20.2, Interest IRM 21.5.5, Unpostables
    IRM 20.2.3, PINEX and Related Command Codes IRM 21.5.6, Freeze Codes
    IRM 21.1.3, Operational Guidelines Overview IRM 21.6, Individual Tax Returns
    IRM 21.1.3.20, Oral Statement Authority IRM 21.7, Business Tax Returns and Non Master File Accounts
    IRM 21.1.2, Reference Materials Overview IRM 25.6, Statute of Limitations
    IRM 21.3.1, Taxpayer Contacts Resulting from Notice Issuance IRM 21.8.1, IMF International Adjustments
    IRM 5.12.3.2.1, Liability is Satisfied IRM 21.8.2, BMF International Adjustments
    IRM 21.3.12, Accounts Management Balance Due Telephone Contacts  


21.5.1.4  (10-01-2011)
General Adjustments – Procedures

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

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

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

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

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

21.5.1.4.1  (10-01-2004)
Sorting Mail Responses

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

  2. The Mail Sort function:

    1. Determines the appropriate area responsible for working the case

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

    3. Matches the receipts to the available skill levels

    4. Segregates the work for trainees

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

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

    7. Batches adjustment cases into work batches

    8. Maintains received date integrity

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

21.5.1.4.2  (05-24-2010)
Clerical Review

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

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

      Note:

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

    2. Input a "STAUP" or Transaction Code (TC) 470 with no closing code on balance due cases. If inputting multiple STAUPS, input the first TIN on the second line of the command code. For additional information on command code STAUP, refer to the IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

      Note:

      TC 470 should only be used when a claim is pending or "STAUP" cannot be input.

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

    4. Update and maintain suspense files. Research each Social Security Number (SSN) or Employer Identification Number (EIN) for each year referenced and route to the appropriate functions if necessary. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, to determine appropriate referrals.

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

  2. Form 3210, Document Transmittal, is a general purpose transmittal form used by all IRS functions. When Accounts Management (AM) prepares a Form 3210, AM will monitor the form to ensure an acknowledgement is received. If no reply is received within 20 business days, follow-up with the receiving office and notate or attach the follow-up information to the suspense copy of the Form 3210 . The follow-up must occur within 10 business days after the expiration of the initial 20 day suspense period. The acknowledgement copy of the Form 3210 must be documented with the date received. For information related to preparing the form, refer to IRM 3.13.62.7.1, Form 3210 Document Transmittal.

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

  1. The following are available for case control:

    • The IDRS Multiple Case Control Report

    • Inventory and Recap code generation

    • Other case categories (not generated by Master File)

    • Case reject criteria


  2. Controlling inventory includes determining:

    • Case Classification

    • Received date

    • IDRS control

    • Status control

21.5.1.4.2.2  (01-18-2012)
Integrated Data Retrieval System (IDRS) — Control Procedures

  1. Control each case on IDRS if the case cannot be closed by the later of 14 calendar days of IRS received date or 3 business days (including the day of receipt) from your function's controlling area, and it meets Policy Statement 21-3 criteria. Amended Returns are not subject to Policy Statement 21-3 criteria. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, for controlling and aging criteria on Form 4442, Inquiry Referral.

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

    • Status Code – for example, "A" , "C" , "M" . See the Case History Status Codes in Section 14 of Document 6209, IRS Processing Codes and Information.

    • Control Category Codes – for example, "TPRQ" , "TPPI" . Refer to Category Codes in Section 14 of Document 6209.

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


  3. Either input CC STAUP or CC DOALL or TC 470 with no closing code to delay the next notice for 15 cycles on cases with a balance due. You must also determine the Internal Revenue Service (IRS) received date. Refer to the IDRS Command Code Job Aid for information regarding input of the command codes.

    Note:

    TC 470 should only be used when a claim is pending or the CC STAUP cannot be input.


  4. Enter the correct IRS received date when controlling the case. For aging purposes, the IRS received date is day one, per IRM 3.30.123.5.2, Response to Correspondence and Overage Criteria. If an IRS received date is not stamped on the document, refer to Received Date – Determination, in IRM 21.5.1.4.2.4.

  5. If all case actions have been completed and you are monitoring the account to ensure proper posting, close the case and establish a monitor base on IDRS using category code "MISC" with the current date as a received date.

    Note:

    When establishing this monitor control base, using an asterisk (*) will generate the current date when used with command code ACTON.

21.5.1.4.2.3  (08-30-2013)
Clerical Function for the Image Control Team (ICT) Correspondence Imaging System (CIS)

  1. The Image Control Team (ICT) is responsible for the clerical functions within CIS. In an effort to meet processing timeframes, all cases must be prepped and scanned within 5 calendar days of ICT receipt or 14 calendar days of the IRS received date.

    Note:

    For complete ICT information, including specific "how to" instructions with illustrations, refer to the ICT Support Activities Guide.

    Note:

    Beginning July 2011, ICT will receive notices containing a 2-D bar code to replace Social Security Number (SSN) on notices. Some of these notices will have the SSN redacted/masked (e.g., xxx-xx-1234) and others will continue to have the complete SSN. For complete ICT information, including specific "how to" instructions with illustrations, refer to the ICT Support Activities Guide.

  2. Receiving and Sorting incoming work

    1. All cases must be date stamped when received in ICT.

      Note:

      Form 1120X, Amended U.S. Corporation Income Tax Return, will not have carryback claims separated and identified prior to receipt. Carryback claims are priority cases and must be identified for expedite scanning. When date stamping the Form 1120X, review Part II of the form to determine if the carryback box is marked. If the carryback box is checked, treat the Form 1120X as a carryback with expedite scanning. Refer to IRM 21.5.1.4.2.3.1, Scanning of Carryback Claims , for additional information.

    2. Stamp the first page of each case.

    3. If case is routed back to ICT, circle out the original ICT date.

    4. Sort the documents (including Form 4251, Return Charge Out, Computer Paragraph (CP) notices, etc.) by document type and category code.

      Note:

      As identified by local management, guidelines may allow for additional screening of incoming receipts to identify any mis-routed cases or other quick closures.

  3. Screening of Accounts Management Correspondence Individual Master File (IMF) – When received in ICT, taxpayer correspondence will be screened to determine the correct document type or forwarded to the CSR screening function for additional document type screening. The listing below provides some examples. For additional details, refer to Exhibit 21.5.1-1, Image Control Team Screening of Correspondence. The ICT screening will identify any obvious routes, and will classify readily identifiable correspondence into the following groups:

    1. Document type "Quick Closure"

      Example:

      Address changes with no other issues or notice stubs with phone numbers only

    2. Document type "Corr - Loose Forms"

      Example:

      Section 83b elections or a loose Form 8606, Nondeductible IRAs – Note that all other loose forms will be forwarded to the CSR screening function for additional analysis.

    3. Document type "Corr - Math Error"

      Example:

      Form 8862, Information to Claim Earned Income Credit After Disallowance, or correspondence with a math error CP notice attached – Refer to Exhibit 21.5.1-1 for a listing of the applicable CP notices.

    4. Document type "Corr - Payment Inquiry"

      Example:

      Correspondence that includes a copy of a canceled check.

    5. Document type "Corr - Penalty"

      Example:

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

      Note:

      Any misidentified cases should be separated during this initial screening (e.g. Injured Spouse claims mixed in with the correspondence).


    All remaining correspondence will be forwarded to the CSR phase of correspondence screening. The CSR screeners will further separate the correspondence into the document types above and will also identify certain cases for scanning into document type "Correspondence" or "Quick Closure" .

    Once separated, the different document types will be scanned into CIS in separate batches with category code TPRQ or PHZ1 and the applicable document type using the corresponding program code.

    Exception:

    As directed by the Inventory Control Manager, certain "Correspondence" document types may be forwarded to other areas without scanning.

    Additional details regarding this screening process, including specific case identification, are located in Exhibit 21.5.1-1, Image Control Team Screening of Correspondence.

  4. Category A (CAT-A) screening – Form 1040X cases are being screened for Category A (CAT-A) criteria prior to forwarding to ICT. The cases will include a cover sheet to identify the particular CAT-A issue and will be reviewed by Accounts Management CSRs for accuracy. CAT-A cases require a referral to Examination prior to taking any action. It is vital that these cases remain separated from the regular Forms 1040X and scanned into CIS accordingly. These cases should be scanned into CIS using the applicable category code with document type "1040X - CATA" . Refer to IRM 21.5.1.4.2.3.2, Scanning of Category A Cases, for additional information.

  5. Preparing and Scanning – Care must be taken when preparing documents for scanning. Proper document preparation helps prevent issues during the subsequent stages of the scanning process.

    Note:

    Large documents (over 50 pages) will be scanned into CIS in entirety. Coordinate any exceptions with the Inventory Control Manager. The CIS image will be retained in the system as the taxpayer's source document.

    The information below provides some guidelines for preparing and scanning documents into the system.

    1. Assemble a batch size that fills the batch file folder and ensure all documents in the batch are the same "Document Type" and "Category Code" .

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

      Note:

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

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

      Note:

      Any blank pages with the case can be deleted as directed by the scanning site. This includes any extra blank pages created when scanning.

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

    5. Photocopy any badly damaged document and use the copy for scanning. Refile any numbered originals after photocopying. Repair any torn documents with tape, ensuring that no adhesive is exposed. Tape all self-stick notes securely to a full sheet of paper prior to scanning.

      Note:

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

    6. Assemble the case in the following order: Separator sheet, Form 4251 (if included), taxpayer correspondence, CP notice or transcript, the return, attachments to the return, Form W-2, and the envelope (if needed).

      Note:

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

    7. Complete the batch cover sheet, place it on top of the batch, and place the completed batch cases in file folders for transport to the scanning operation.

    8. Place problematic documents (e.g., legal-sized paper or oversized envelopes) at the end of the batch to help minimize switching between landscape and portrait print orientation.

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

      Note:

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

    10. Place smaller documents, such as Form W-2, at the leading edge center of the stack of pages.

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

    12. Enter values (if present) from the batch cover sheet into the corresponding fields in the create batch window. The batch fields are as follows:

    Batch Fields
    Document Type (preset when batch class selected – may be updated if needed)
    Category Code (preset when batch class selected – may be updated if needed)
    Program Code (preset when batch class selected – may be updated if needed)
    IRS Received Date (must enter a hyphen or slash between month, day and year)
    Case Priority
    MFT (preset at batch level by scanner operator)
    Tax Period (yyyymm format)
    Issue Type
    CSR Number
    Scan Type – Select production as the scan type for the Kodak i840
    Designated Campus. Enter the Campus designation code only if the batch of work is being transferred to another Campus, otherwise leave blank.
    Function (preset is ADJ)

  6. Proper envelope positioning will also help prevent scanner jams:

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

      Note:

      Mend any tears or wrinkles prior to scanning.

    2. Cut down both sides if the top and bottom of the envelope has been opened and use only the part of the envelope with useful information.

      Note:

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

    3. Photocopy bubble and manila (brown) envelopes prior to scanning, when necessary. Envelopes with metal clips must be photocopied.

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

  7. Scanning of Envelopes – When preparing taxpayer correspondence (TPRQ cases) for scanning, many envelopes can be discarded as classified waste. The following are TPRQ case exceptions when the envelope must be scanned:

    • CP 08, Additional Child Tax Credit

    • CP 09, Earned Income Credit - You May Be Entitled to EIC

    • CP 27, EIC Potential for T/P Without Qualifying Children

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

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

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

    • Correspondence cases without an IRS stamped received date

    • Whenever in doubt, scan the envelope.

    Reminder:

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


  8. Taxpayer original documents – If the taxpayer has enclosed "original" documents (e.g., birth certificates, death certificates, driver's license, social security cards, cancelled checks), follow the procedures below:

    1. Photocopy the original document prior to scanning.

    2. Place the photocopy of the document with the case for scanning.

      Exception:

      Do not scan original documents received with a request for an Individual Taxpayer Identification Number (ITIN) or an Adoption Taxpayer Identification Number (ATIN). These requests will be submitted on a Form W-7, Application for IRS Individual Taxpayer Identification Number or a Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions . Forward these original documents and forms via a Form 3210, Document Transmittal, to the appropriate address below:

      IRS - AUSPC ITIN Unit Stop 6090 or
      IRS - AUSPC ATIN Unit Stop 6182
      3651 South Interregional Highway 35
      Austin, TX 78741

    3. Complete and attach Form 3699, Return of Documents to Taxpayer, and place the "original" document in the designated area for return to the taxpayer.

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

    5. Mail the documents to the taxpayer as assigned by local management.

      Caution:

      Extreme care must be taken to ensure that only the material relative to the taxpayer(s) to which the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.26, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

      Note:

      If the original document is a state tax return, follow the instructions in IRM 21.3.3.4.15, Misdirected Mail.

  9. Determining the priority code – Some case types require the entry of a priority code when scanning. The cases are as follows:

    Sorting Requirements Category Code and Case Priority Additional Notes
    Form 12412, Operations Assistance Request (OAR), if marked "expedite"

    Note:

    The indication "expedite" will be near box 4 of the form.

    ATAO – Case Priority 1
    • OARs should be faxed or mailed directly to the Operating Division Liaison

    • These forms must be given top priority

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


    Form 12412, if not marked "expedite " ATAO – Case Priority 2 See above for additional information
    Form 14103, Identity Theft Assistance Request (ITAR) ITAR – Case Priority 2
    • Form 14103 is to be handled like an OAR

    • Form 14103 will be received by the ITAR Liaison

    • These forms must be given top priority

    • After scanning, all original Forms 14103 must be given to the work leader who will return the original form to the ITAR Liaison within 1 business day – the ITAR Liaison will return the original to the IPSU CSR

    Andover and Fresno ICT only – Form 4442, Inquiry Referral, as identified by the Identity Protection Specialized Unit (IPSU). Refer to IRM 21.9.2.9 , Identity Theft Assistance Request (ITAR) - General Information, for additional information.

    Note:

    Fresno ICT will receive Spanish ITAR cases.

    ITAR – Case Priority 2
    • Form 4442 referrals related to identity theft and meeting Taxpayer Advocate Criteria will be forwarded directly to IPSU

    • IPSU will forward these Form 4442 referrals for expedite scanning

    • These cases must be scanned with 24 hours of receipt using category code ITAR and document code Identity Theft

    Carryback claims –
    Form 1045, Application for Tentative Refundor
    Form 1139, Corporation Application for Tentative Refundor
    Form 1040X, Amended U.S. Individual Income Tax Returnor
    Form 1120X, Amended U.S. Corporation Income Tax Return

    Note:

    Form 1040X and Form 1120X can be identified by the carryback claim box or by "Carryback Claim" or "SBJA 2012" entered at the top of page 1 of the carryback claim.

    RINT/TENT Refer to IRM 21.5.1.4.2.3.1, Scanning of Carryback Claims, for priority code information.
    Combat Zones – Any amount TPRQ/XRET – Case Priority 1 Cases where the taxpayer indicates that they are/were involved in a COMBAT ZONE.
    Disaster Claims – Any amount DSTR/KATX – Case Priority 1 All "Disaster, Hurricane or Hurricane Katrina" claims.
    Injured Spouse Claims – Any amount DMFC – Case Priority 3 Any Form 8379, Injured Spouse Allocation, and
    any CP 36D, Injured Spouse Claims Notice
    First-Time Homebuyer Credit claims on Form 1040X FTHB – Case Priority 2 Any Form 1040X with a Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, attached

    Note:

    The majority of these claims will be identified in Submission Processing prior to forwarding to ICT.

    First-Time Homebuyer Credit correspondence FTHC – Case Priority 2 Any correspondence related to Form 5405 or correspondence that mentions the First-Time Homebuyer Credit
    Form 14039, Identity Theft Affidavit

    Note:

    Written in English

    IDT4 – Case Priority 2 When Form 14039, Identity Theft Affidavit, (IMF Domestic) is received in areas outside of the Identity Protection Specialized Unit (IPSU), alone or with correspondence written in English scan as document type ID Theft IDT4, category code IDT4. Use priority code 2. All sites will scan directly to Andover.

    Exception:

    If the Form 14039 is submitted with a Form 1040X, scan the case as category code XRET with document type "1040X" – a priority code is not needed in this instance.

    Form 14039, Identity Theft Affidavit

    Note:

    Written in Spanish

    IDT4 – Case Priority 2 When Form 14039, Identity Theft Affidavit, (IMF Domestic) is received in areas outside of the Identity Protection Specialized Unit (IPSU), alone or with correspondence written in Spanish scan as document type ID Theft Spanish IDT4, category code IDT4. Use priority code 2. All sites will scan directly to Fresno

    Exception:

    If the Form 14039 is submitted with a Form 1040X, scan the case as category code XRET with document type "1040X" – a priority code is not needed in this instance.
    Andover ICT only – Form 14039, Identity Theft Affidavit, only if received through specialized IPSU fax line or address IDTX or IDT4 – Case Priority 2
    Only applies to Forms 14039 received through the specialized IPSU fax line or address – if received in Andover Campus Support, scan as category code IDT4 as described above.

    Note:

    Category code IDTX is used when the first box on the Form 14039 is checked. In all other instances, scan as category code IDT4.

  10. Retention of scanned documents – ICT will retain scanned paper documents for a minimum of one week. After one week, campuses may classify unnumbered scanned documents and reassemble. Return numbered documents to Files as soon as scanning and validation has been completed. It is not necessary to re-examine all the documents prior to classification. If space is available and a need has been identified locally, campuses may retain scanned documents in the ICT longer than one week. See IRM 3.5.61.8.7, Correspondence Imaging System (CIS) Requests, for further information related to Files, ICT and CIS.

  11. Validation – Process used to verify and/or enter information so that the cases will be controlled on IDRS and placed in workflow for distribution to the CSRs. In addition to the batches scanned in ICT, documents scanned by the Files function must also be validated. If documents/batches need to be re-scanned in Files for any reason, ICT management should coordinate with Files management.

    Reminder:

    Validation includes the verification of the received date of the case. The correct received date is vital to avoid negative impact to the Accounts Management overage inventory. Received date information, including information related to fax documents, is included in IRM 21.5.1.4.2.4, Received Date – Determination. When faxed copies of previously submitted correspondence are received, ensure the faxed received date is properly entered.

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

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

  14. Reroutes – During the course of closing cases, CSRs will discover cases that need to be printed and rerouted. These cases will print out on network printers located in the ICT area. Clerks in ICT will assemble the cases and route to the designated functions/areas. Each rerouted case will include either a Form 1725, Routing Slip, or Form 12960, Case Referral, or other CIS cover page. These cover sheets will serve as a separator page for the different reroute cases. At the top of every page of each case, "CIS" will print in the left corner, the CIS case number in the middle, and the Employee Number (of the CSR who routed the case) in the right corner.

    Example:

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

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

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

    • The print cartridges have not run out of ink

    • The printers are not turned off

    • Cases are routed promptly, and

    • Unauthorized disclosure of taxpayer information does not occur.

  15. Category Code Exception – Certain Non-Filer Reject (NFR) returns are forwarded to the IMF AM paper function for processing. These 1040 series returns will have "NFR" across the front of the return or will be clearly designated when received. Scan these returns using category code XRET.

21.5.1.4.2.3.1  (05-17-2013)
Scanning of Carryback Claims

  1. Scanning of carryback claims require expedite handling. The information below outlines the procedures for handling carryback claims.

  2. Carrybacks are scanned with priority codes dependent upon the dollar amounts. Refer to the following table for specifics:

    Sorting Requirements Category Code and Case Priority Additional Notes
    Restricted Interest Carrybacks, Form 1040X, Amended U.S. Individual Income Tax Return, or Form 1120X, Amended U.S. Corporation Income Tax Return
    $1 million or more
    RINT – Case Priority 1 If multiple tax periods are received from the same taxpayer, separate the forms by the appropriate tax period. It is important to leave all supporting information with each case. See the NOTE below the table for additional information.
    Restricted Interest Carrybacks, Form 1040X/1120X –
    $100,000-$999,999
    RINT – Case Priority 2 See above for additional information.
    Restricted Interest Carrybacks, Form 1040X/1120X –
    $5,000-$99,999
    RINT – Case Priority 3 See above for additional information.
    Restricted Interest Carrybacks, Form 1040X/1120X –
    $0-$4,999
    RINT – Case Priority 4 See above for additional information.
    Tentative Carrybacks, Form 1045, Application for Tentative Refund, or Form 1139, Corporation Application for Tentative Refund
    $1 million or more
    TENT – Case Priority 1 All information remains with each case on the tax period of the Form 1045/1139. See the NOTE below the table for additional information.
    Tentative Carrybacks, Form 1040X/1120X –
    $100,000-$999,999
    TENT – Case Priority 2 See above for additional information.
    Tentative Carrybacks, Form 1040X/1120X –
    $5,000-$99,999
    TENT – Case Priority 3 See above for additional information.
    Tentative Carrybacks, Form 1040X/1120X –
    $0-$4,999
    TENT – Case Priority 4 See above for additional information.

    Note:

    Priority codes for carryback claims are determined by the total dollar amount of the claim. If the taxpayer submits multiple claims on Form 1040X/1120X or includes a Form 1045/1139 for the same loss year, combine the amounts from all the forms to determine the correct priority code. If the forms are for different loss years, the amount of each separate claim determines the priority code.

    Reminder:

    The Form 1040X/1120X may not have the carryback box checked or any other indication of Net Operating Loss (NOL) on the form itself, but may have an "NOL worksheet" within the case.

  3. Carryback claims can be received at any site. The receiving site will scan the claims to the appropriate site as outlined in the following table:

    Case Type Receiving Site Scanning Information
    Form 1040X carryback, domestic All sites

    Exception:

    Million dollar refunds and cases identified after being distributed as another case type will be retained in the receiving campus.

    Scan to Brookhaven

    Note:

    Use category code "RINT" with document type "carryback" , along with program code 710-40063, MFT 30, and any applicable priority code.

    Form 1040X carryback, international All sites Scan to Philadelphia

    Note:

    Use category code "ITCB" with document type "carryback" , along with program code 710-33086 MFT 30, and any applicable priority code.

    Form 1045 carryback, domestic All sites

    Exception:

    Million dollar refunds and cases identified after being distributed as another case type will be retained in the receiving campus.

    Scan to Brookhaven

    Note:

    Use category code "TENT" with document type "carryback" , along with program code 710-40064, MFT 30, and any applicable priority code.

    Form 1045, international All sites Scan to Philadelphia for IMF claims and Ogden for BMF claims.

    Note:

    Use category code "ITCB" with document type "carryback" . For IMF use program code 710-33086, MFT 30. For BMF use 710-33089, MFT 05. See the NOTE in paragraph (2) above when determining the appropriate priority code.

    Form 1120X, domestic 1. Cincinnati, Ogden

    2. Andover, Atlanta, Brookhaven, Philadelphia

    3. Austin, Fresno, Kansas City, Memphis
    1. Scan normally
    2. Scan to Cincinnati
    3. Scan to Ogden

    Note:

    Use category code "RINT" with document type "carryback" , along with program code 710-10063, MFT 02, and any applicable priority code.


    Form 1120X, international All sites Scan to Ogden

    Note:

    Use category code "IRNT" with document type "carryback" , along with program code 710-33087, MFT 02, and any applicable priority code. See the note in paragraph (2) above when determining the appropriate priority code.

    Form 1139, domestic 1. Cincinnati, Ogden

    2. Andover, Atlanta, Brookhaven, Philadelphia

    3. Austin, Fresno, Kansas City, Memphis
    1. Scan normally
    2. Scan to Cincinnati
    3. Scan to Ogden

    Note:

    Use category code "TENT" with document type "carryback" , along with program code 710-10064, MFT 02, and any applicable priority code.

    Form 1139, international All sites Scan to Philadelphia for IMF claims and Ogden for BMF claims.

    Note:

    Use category code "ITCB" with document type "carryback" , along with program code 710-33089, MFT 02, and any applicable priority code. See the note in paragraph (2) for determining the appropriate priority code.

    Note:

    Details for scanning to the different IMF/BMF sites can be found in the Image Control Team (ICT) Scanning Activities Guide IMF .

21.5.1.4.2.3.2  (08-31-2010)
Scanning of Category A Cases

  1. Scanning of any pre-identified Category A (CAT-A) claims require expedite handling. The following information outlines the procedures for the scanning of these CAT-A claims.

  2. CAT-A claims will be identified by Submission Processing and forwarded to Accounts Management for review by a CSR(s) prior to scanning.

  3. Once reviewed by the CSR(s), the claims will be forwarded to ICT for scanning.

  4. These Form 1040X cases will be scanned with the appropriate category code and document type "1040X-CATA" .

    Example:

    Form 1040X meeting the CAT-A criteria for Schedule A will be scanned using category code "CATA" , with document type "1040X-CATA" .

    Example:

    Form 1040X meeting the CAT-A criteria for the First-Time Homebuyer Credit will be scanned using category code "FTHB" , with document type "1040X-CATA" .

    Example:

    Form 1040X meeting the CAT-A criteria for a disaster claim will be scanned using category code "DSTR" , with document type "1040X-CATA" .

  5. Each claim will include a cover sheet identifying the specific CAT-A criteria identified. Ensure this cover sheet is scanned as the second page of each corresponding case.

21.5.1.4.2.4  (06-01-2011)
Received Date – Determination

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

  2. Taxpayers occasionally submit documents that include a copy of a previously stamped IRS received date. The correct received date in this instance is the stamped/handwritten received date for the current submission. If unable to determine if the received date is a copy, use the oldest IRS received date. See (3) below if there is no IRS received date from the current submission of the document.

    Example:

    Taxpayer submits a copy of a U.S. Postal Service Certified Mail Receipt with an IRS received date stamped on the receipt. The received date, in this instance, is the received date of the taxpayer's correspondence and not the previously stamped date on the certified mail receipt.

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

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

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

      Note:

      SCAMPS sprays a digital date on the envelope.

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

      Exception:

      If the only available date is from a copy of a previously filed return, do not use the copied signature's date. Continue to (d) or (e) below.

    4. Julian Date of the Document Locator Number (DLN) minus 10 days.

      Note:

      The Julian Date is the 6-8 digits of a DLN. For example, in the DLN 28210-105-60025-4, the Julian Date is 105. Refer to DLN Composition in Document 6209, IRS Processing Codes and Information, for additional information.

    5. Today’s date minus 10 days.

    Note:

    For information concerning the Statute Reprocessable Return, see IRM 21.5.2.4.23.4, Statute Imminent Documents.


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

    Exception:

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

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

21.5.1.4.2.5  (03-18-2008)
Received Date - Grace Periods

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

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

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

    If ... And the payment is received ... Then the effective date of the payment is the ...
    the balance due is less than $100,000 within ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.
    the balance due is equal to or greater than $100,000 within 10 business days plus ≡ calendar days of the 23C date of the notice 23C date of the notice. Refer to
    IRC § 6601(e)(3).
    the payment was made prior to January 1, 1997 within 10 days plus ≡ ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.


  4. When TC 610 or TC 670 payments post to a BMF account, which generally require Federal Tax Deposits (FTD), refer to IRM 20.1.4.7.2 , Deposit Due Dates, and IRM 20.1.4.6,De Minimis Exception to Deposit Requirements, for information regarding amounts allowed to be paid with specific tax returns and for information regarding payments made through the Electronic Federal Tax Payment System (EFTPS) and the FTD system (TC 650).

21.5.1.4.2.6  (10-01-2008)
Adjustments Case Management by Customer Service Representative (CSR)

  1. Adjustment inventory assigned to the Customer Service Representatives (CSRs) must be worked in first-in, first-out order.

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

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

    • Control Category

    • File Name

    • Case Control Number

    • Taxpayer Identification Number (TIN)

    • MFT

    • Tax Period

    • Name Control

    • IRS Received Date

    • Plan Number

    • Follow Up Code

    • Employee Number

    • Error Code

  2. Review the list, identify any systemic problems, and take the necessary corrective actions or, if unable to correct, refer the systemic problems to the local IDRS Staff.

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

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

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

    Reminder:

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

21.5.1.4.2.9  (05-10-2006)
Analyze the Case

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

    • A copy of a return

    • A reply to one of our inquiries

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

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

    • Other request


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

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

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


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

21.5.1.4.2.10  (02-05-2010)
Late Replies

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

  2. Late replies may affect tax or penalty assessments.

  3. Complete the following when late replies are received:

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

    2. Use the applicable Corporate Files On Line (CFOL) commands instead of requesting documents when necessary to recompute tax or verify credits, such as command code (CC) IMFOLT for interest computation. See IRM 20.2.3, PINEX and Related Command Codes.

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

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

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

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

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

    8. IMF – Correct the Return Processable Date (RPD) if the module has an "I -" freeze and Compute Condition Code (CCC) "U" . Update the RPD with the received date of the missing information.

      Note:

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


      BMF – Correct the Correspondence Received Date (CRD) if the CRD field on the account is posted as a zero field (generated by CCC 3). Update the CRD with the received date of the missing information.

    9. Update the Assessment Statute Expiration Date (ASED) if the late reply is the missing signature from the original return and it is received after the due date of the original return. The ASED is updated with TC 560 via Command Code REQ77 and Command Code FRM77. Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period , for additional information.

      Note:

      When inputting the TC 560, use the received date of the signature as the TRANS-DT on the FRM77 screen and 3 years from the received date for the EXTENSION-DT of the FRM77 screen.

21.5.1.4.3  (05-10-2006)
Incomplete Inquiry

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

    1. Missing payment – When the payment is not found and proof of payment is not submitted.

    2. Restricted Interest Claims (RINTS) and Tentative Carryback Applications (TENTS) – When information is required by the instructions, but is not submitted. See IRM 21.5.9, Carrybacks.

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


    Exception:

    When corresponding for missing information and the Refund Statute Expiration Date (RSED) may expire during the taxpayer's allowable response time, refer to IRM 25.6.1.10, Claims, Abatements and Refunds, and IRM 21.5.3.4.3, Tax Decrease and Statute Consideration.

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

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

21.5.1.4.3.1.1  (10-01-2008)
Missing Returns

  1. If no TC 150 has posted:

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

    2. Contact the taxpayer by telephone or correspondence to determine where, when, and how the return was filed. Request a signed copy of the return, if necessary. Allow the taxpayer 40 days to reply (70 days if taxpayer is overseas). If no reply from the taxpayer, take the following action:


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


  2. If TC 150 has posted:

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

    2. Determine if sufficient information is available to close the case. When sufficient information is not available, contact the taxpayer for a signed copy of the return before closing the case. Allow the taxpayer 40 days to reply (70 days if taxpayer is overseas).

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

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


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

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

    2. Attach Form 8485, Assessment Adjustment Case Record.

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


21.5.1.4.3.1.2  (07-19-2010)
Missing Case File

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

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

    If ... And ... Then ...
    The "Pending Transaction Identification Code" of TC 904 is "ERS"   Close the control base as an error case, activity code "ERRORCASE "
    No TC 904 on the module CC INOLES has been researched with no response Close the control base as an error case, activity code "ERRORCASE. "
    Positions 37 through 40 of the TC 904 line contain the district office Year the tax module was removed to the Retention Register Ask your supervisor to check with Accounting function to see if the module is being reestablished on the Accounts Register. See note below.


    Note:

    If Accounting is reestablishing the module, they may be able to provide the information to help solve your case.


  3. Perform the following research to locate your missing case.

    If ... Then ...
    IDRS indicates multiple bases controlled to you Verify the missing case is not attached to your other cases.
    There is a TC 420 on the module Contact audit to see if your case is associated with the examination case. Refer to IRM 4.19, Liability Determination, for special project code procedures, or refer to Exhibit 21.5.10-1, AIMS STATUS CODE GUIDE - FIELD CASES .
    The adjustment is not posted to another module on IDRS Check all modules for an adjustment using CC IMFOL or CC BMFOL.
    You secured the return Check to see if your case is attached.
    You can contact the taxpayer via telephone or correspondence Request a copy of their inquiry, if needed (forms, schedules, etc.).
    Case cannot be located Document all research performed (using Form 5706, Case History Sheet).
    See note below this table.
    Account is showing a credit balance. Input a TC 290 for the amount of the credit.

    Note:

    If adjusting employment tax returns, also refer to IRM 21.7.2.4.6.3.2, Withholding Tax Adjustment When Unable to Determine Proper Tax Correction.

    Account is showing a debit or zero balance Input a TC 290 for zero to release all freezes.


    Note:

    When the case cannot be located, the supervisor must sign the history sheet before the case can be closed.


21.5.1.4.4  (10-01-2012)
Processing of Loose Forms or Schedules

  1. Whenever a form or schedule without a return is received in Accounts Management and the original return has not posted, refer to the following table:

    If ... And ... Then ...
    You can determine that no adjustment will be necessary,

    Example:

    Section 83(b) elections

      Input a TC 930 push code, if appropriate, to file the information. Refer to IRM 21.5.1.4.4.1, TC 930 Push Codes and IRM 21.5.1.4.4.2, Inappropriate Use of TC 930 Push Code.

    Note:

    Push code procedures are not needed if the document was scanned into CIS. See IRM 21.5.1.5.7, CIS Push Codes, for additional information.

    You are unable to determine whether an adjustment will be necessary or if you can determine that an adjustment will be needed, There is an indication the return has been filed or will be filed. Refer to IRM 21.4.1.3.1, Locating the Taxpayer's Return, for additional information.

    Note:

    Consider any form received prior to the return due date as an indication the taxpayer will file.

    Input a TC 930 push code using your employee number as indicated in IRM 21.5.1.4.4.1, TC 930 Push Codes.

    Reminder:

    In certain instances, TC 930 push code procedures should not be used. Refer to IRM 21.5.1.4.4.2, Inappropriate Use of TC 930 Push Code.

    An adjustment will or will not be needed, There is no indication the return has been filed and it is beyond the return due date Return the loose form or schedule to the taxpayer. Advise the taxpayer to include the form/schedule on the original return when it is submitted.

    Note:

    CIS images do not have to be returned.



  2. Whenever a form or schedule without a return is received in Accounts Management and the original return has posted, refer to the following table:

    If ... Then ...
    You can determine that no adjustment will be necessary,

    Example:

    Section 83(b) elections, previous action, etc.

    Locate the DLN and associate the loose form/schedule with the original return using local procedures. If the original return was filed electronically, refer to IRM 21.6.6.3.25, Electronic Filing System (e-file).

    Note:

    CIS images do not have to be associated with the original return. A case note can be added to quickly identify the loose form or schedule.

    You are unable to determine whether an adjustment is needed,
    1. Return the loose form/schedule to the taxpayer.

      Note:

      CIS images do not have to be returned.

    2. Advise the taxpayer that a Form 1040X is required to amend the original return.

  3. The following forms have specific procedures:

    If ... And ... Then ...
    Form 5405, First-Time Homebuyer Credit and Repayment of the Credit is received
    1. Original return has posted

    2. Original return has not posted

    1. See IRM 21.6.4.4.19.4, Manually Adjusting the Recapture Amount

    2. Follow push code procedures – See IRM 21.5.1.4.4.1, TC 930 Push Codes

    Form 8609, Low-Income Housing Credit Allocation Certification, is received and Part II is not signed,   Route to the Philadelphia campus at the following address:
    IRS
    2970 Market St
    Philadelphia, PA 19104
    Form 8609 is received and Part II is signed,   Associate the Form 8609 with the related tax return of the building owner.
    Form 8913, Credit For Federal Telephone Excise Tax Paid Original return has posted and the Telephone Excise Tax Refund (TETR) amounts (credit or interest) are already credited to the account The form is a duplicate and can be treated as classified waste.
    Form 8913, Credit For Federal Telephone Excise Tax Paid Original return has posted and the TETR amounts (credit or interest) are different or not present on the account,
    1. Return the loose form to the taxpayer.

      Note:

      CIS images do not have to be returned.

    2. Advise the taxpayer that a Form 1040X is required to amend the original return.

    Form 8913, Credit For Federal Telephone Excise Tax Paid Original return has not posted Return the loose form to the taxpayer and request a return (Form 1040EZ-T or Form 1040/A/EZ).

    Note:

    CIS images do not have to be returned.

    Form 14039, Identity Theft Affidavit   Refer to IRM 21.9.2.4.1, Self Identified-Non-Tax-Related Identity Theft (Andover and Fresno IPSU only)

    Caution:

    Extreme care must be taken when returning taxpayer information to ensure that only the material relative to the taxpayer(s) to which the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.26, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

21.5.1.4.4.1  (05-24-2010)
TC 930 Push Codes

  1. Forms, schedules, or taxpayer inquiries received before a return posts can be filed using the TC 930 - Push Code. This will suspend requisitions for subsequent returns. Refer to IRM 21.5.1.4.4.2, Inappropriate Use of TC 930 Push Code, for additional push code information and also see IRM 21.5.1.5.7,CIS Push Codes, for information on push codes with the Correspondence Imaging System (CIS).

  2. Input a TC 930 Push Code using command code REQ77 and complete the following:

    1. Input your employee number starting with the third digit, in the TC 930-EMP-CD field if you want the schedule and original return forwarded back to you.

    2. Input the employee number for Files (see table below), starting with the third digit, in the TC 930-EMP-CD field if you want the schedule attached to the original return, but not returned to you.

      Campus Employee number for Files
      Andover 50100000
      Atlanta 65000000
      Austin 13500000
      Brookhaven 49300000
      Cincinnati 13100000
      Fresno 13600000
      Kansas City 13100000
      Memphis 13600000
      Ogden 53000000
      Philadelphia N/A

    3. Input your unit number and all zeros, in the TC 930-EMP-CD field if you want the schedule returned to you, but you do not need the original return.

    4. Refer to IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A , for additional information on inputting push codes.

    Note:

    If the return for which you are using the push code is an electronically filed or magnetic tape filed return, the CP 98/198, Push Code Condition, is associated with the TC 930 suspense document and returned to the originator.


  3. If the return does not post within 36 cycles after the return due date for IMF or 50 cycles after the end of the tax period for BMF, a CP 98/198 generates. Research the DLN (another TIN, EIN, tax period, etc.). It may be necessary to contact the taxpayer for additional information.

    Note:

    The TC 930 Push Code will not release a payment (TC 670) if present on the module.


21.5.1.4.4.2  (10-01-2009)
Inappropriate Use of TC 930 Push Code

  1. Do not use the TC 930 Push Code (PC) in the following instances:

    • If the TC 150 is posted or pending to post (e.g., PN 150, CU 150)

    • For prior year returns

    • For more than one year in advance of the return

    • If a TC 59X is posted

    • If the return is in the Error Resolution System (ERS)

    • If the return is in unpostables

    • After the return due date has passed, unless research indicates the return has been received and should post in the near future.

    • If the document is scanned into the Correspondence Imaging System (CIS) and will not result in an adjustment to the account, such as a Section 83(b) election

      Note:

      Refer to IRM 21.3.3.4.14, Miscellaneous Elections and Forms, for additional information regarding Section 83(b) and IRM 21.5.1.5.7,CIS Push Codes, for information on push codes specific to CIS.


  2. If the schedule relates to a prior year return or for a return already posted, research for the DLN. Upon locating the DLN, associate the loose schedule with the original return using local procedures.

  3. Do not input a TC 930 more than 1 year in advance of the return due date as it will not post to the account.

21.5.1.4.5  (05-17-2007)
Suspense Folders

  1. Prepare suspense folders for cases that require additional information from the taxpayer or another document from Files. Hold the cases in a centralized suspense file. For instructions on payment tracer cases, refer to IRM 21.5.7, Payment Tracers.

    1. Work the case when information is received.

    2. Allow 14 calendar days for receipt of tax returns from Files. Allow 30 calendar days for receipt of out of region tax returns from Files.

    3. Purge the suspense case if information requested from the taxpayer is not received within 40 days.

      Exception:

      Overseas taxpayers have a 70 day purge time.

    4. If no reply, close the case according to available information and send the appropriate closing letter.

    5. Suspended case files should have a history sheet or record attached to reflect all action taken and the date.

      Note:

      A history sheet is not required when the only action taken prior to closing the case is the initial request for "IMFOL" display information.


    6. Include a notation that an apology was issued for service errors and include the date of the apology. See IRM 21.3.3.4.17.1, Preparation of Outgoing Correspondence, and IRM 21.3.3.4.24, Review of Outgoing Correspondence.


21.5.1.4.5.1  (10-01-2003)
Retaining Case Control After Adjustment Action

  1. Some adjustment transactions require case control after input, such as when:

    1. an additional assessment has been made on a non-computed form because of a processing error, or

    2. a case requires an adjustment to identify examination criteria


  2. To maintain controls on these adjustments, take the following actions:

    1. Input the first adjustment transaction with a re-file DLN

    2. Enter "R" in the SOURCE-DOCUMENT-ATTACHED field

    3. Write the DLN of the original return in the remarks field

    4. Retain case control

    5. Upon receipt of the document from Files, associate it with the original case

    6. Complete any further action required


21.5.1.4.6  (07-19-2010)
Returns Filed as Attachments to Other Returns/Correspondence

  1. When a return not belonging to your case file is discovered:

    1. Detach the return

    2. Research to determine if the return should be processed, re-filed, or worked as a separate case, etc.


  2. To process the return:

    1. Prepare Form 1725, Routing Slip

    2. Edit the IRS received date in red if IMF or green if BMF

    3. Send to Numbering or to the appropriate area


21.5.1.4.7  (10-01-2003)
Taxpayer Inquiry Referred From Other Functions

  1. Taxpayer Inquiry (TPI) cases referred to your function should be controlled using the IRS received date.

  2. Non-TPI cases should be controlled, reflecting the date the case was received in your function.

  3. The computer automatically opens a control base on IDRS when a case was closed by Unpostables with Unpostable Resolution Code (URC) 2. The IRS received dates for these cases are the correspondence dates (CORRESP-DT), or the GUF-15 closing run date.

  4. Control on IDRS all cases referred to your function by other areas, including the local campus mail function, by the later of 14 calendar days from the IRS received date or three business days (including the day of receipt) from your function’s received date.

    Exception:

    Cases that will be closed within 14 calendar days from the IRS received date, counting the day they are received, are not required to be controlled.


21.5.1.4.8  (01-18-2012)
Transaction Code 971

  1. Transaction Code (TC) 971 is an identifier used to cross reference other TINs and tax periods or to identify other information about a particular account, including the location of a taxpayer’s claim. The Action Code (AC) associated with the TC 971 provides details as to the action on a tax module or a particular case. Refer to Section 8 under TC 971 Action Codes in the Document 6209, IRS Processing Codes and Information, for a complete listing of the different action codes.

  2. When inputting a TC 971, different transaction dates are required depending on the action being taken. Some common examples are:

    1. If a TC 976 or 977 document is being reprocessed to another TIN or tax period (AC 002), the transaction date for the TC 971 is the posted date of the TC 976 or 977.

    2. If the TC 150 document is being reprocessed to another TIN or tax period (AC 001), the transaction date for the TC 971 is the date shown in the RET-RECD-DT field on TXMOD.

    3. AC 010 indicates an amended return/claim has been forwarded to Submission Processing or Accounts Management. Either area may process the claim depending on their criteria. Action codes 012-016 indicate the amended return/claim has been forwarded to another area for processing. The transaction date for the TC 971 is the received date of the amended return.

    4. If the claim is being returned to the taxpayer (AC 270), the transaction date for the TC 971 is the current date.

    5. If AC 017 is being used to identify a return being reprocessed from another module, the transaction date is the received date of the return being reprocessed.

      Note:

      TC 971 AC 086 or AC 087 indicate non-assessment of interest and penalty due to a Presidentially Declared Disaster and are input automatically.

  3. Input TC 971 on IDRS using command code REQ77. Refer to IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A , for further information.

21.5.1.4.9  (10-01-2003)
Recharging and Re-filing Documents

  1. Use the following procedures when it is determined the return should be recharged to another area. There are three ways to recharge a document.

    1. Input command code (CC) ESTABD with the definer (T). The employee is responsible for inputting this action.

      Note:

      A Form 4251, Return Charge-Out, will generate in Files notifying them of the change. If IDRS is unavailable for at least three days, notify Files on Form 4251, if available. Follow (c) below to complete Form 4251.

    2. Form 2275, Records Request, Charge and Recharge, complete Part A, Boxes 1 - 5, Part C. Check the (Recharge to) box and fill out the charge out information in Box E, and #19. Attach the return to the case and route both to the recharge activity and forward the original Form 2275.

      Note:

      The necessary charge out information is included in (c) below

    3. Complete the Form 4251 and specify where the return will be recharged (operation or function). Complete the charge out information, including the address of the area office, etc. Attach the return to the case and route both to the recharge activity and forward the original Form 4251 to Files.


  2. Whenever an original return is requested from Files for an adjustment and it is determined an adjustment is unnecessary, recharge the return back to Files.

21.5.1.4.10  (03-21-2013)
Classified Waste

  1. Classified waste is documentation containing taxpayer entity or account information not needed for audit trail purposes.

  2. Classified waste does not include:

    1. Numbered returns.

    2. Unnumbered returns, amended returns, and claims requesting an adjustment to the taxpayer's account.

    3. Taxpayer inquiries or background information requesting a tax, penalty, or interest adjustment, regardless if allowed or disallowed, except when the inquiry concerns misapplied payment(s) that when found and applied correctly, eliminates the penalty and interest.

    4. Taxpayer inquiries or background information resulting in a hard-core payment tracer.

    5. Taxpayer inquiries or background information resulting in a credit transfer between non-related accounts or related accounts and the credit is not available.

    6. Any mis-routed forms.

    7. Documentation required for audit trail purposes that does not require any IDRS input transaction. Attach this documentation to the original return.


  3. Classified waste includes:

    1. Copies of research not used for the case, such as MFTRA, TFTRA, MCC transcripts, microfilm, etc.

    2. Taxpayer letters and background information when a response has previously been issued, but did not result in a change to the taxpayer’s account, such as request for forms and publications.

    3. Taxpayer letters not asking for research, abatement, or information, but are general information letters, such as a letter from a taxpayer asking how to file their return.

    4. Taxpayer's letter accompanying payments, such as "attached is my payment of $$$ for 2007 taxes," etc.

    5. Extra or duplicate copies of taxpayer inquiries including copies of returns, schedules, or worksheets, if not needed as background information for adjustments.

    6. Taxpayer letters or background information resulting in an entity address change.

    7. Taxpayer inquiries requesting a transcript of accounts.

    8. Credit transfers within the same TIN and transfers completed between related accounts, where the credit is available.

    9. Copy of a notice included with the taxpayer's request.


  4. Marking and disposing of classified waste:

    1. Notate any actions taken

      Example:

      Address change per taxpayer correspondence (TPRQ) or Form 1040X or Form 8822

      Example:

      Taxpayer identified the payment submitted for a particular tax period or type of tax (i.e., Remittance Advice)

      Example:

      Previous action - correction already posted


    2. Place a large "X" across front of the document. If documents are stapled together, you need to place the large "X" on the first page only.

    3. Enter your Employee Identification Number

    4. Include the document with your closed cases, so the clerks may dispose of it in the "designated classified waste" trash can

    Exception:

    Account Management Service (AMS), IDRS, or the Correspondence Imaging System (CIS) create electronic images of a case. Cases scanned into these electronic systems do not require any markings, since the electronic image will remain available.

21.5.1.4.11  (05-13-2009)
Signature Requirements

  1. Request for adjustments to tax and interest abatements must contain the signature of the taxpayer, other than those allowed with an oral statement or valid representative. Refer to the table in IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for acceptance of faxed signatures. IRM 21.1.3.20, Oral Statement Authority, provides details regarding the type of adjustments that do not require a taxpayer signature.

  2. Receipt of a schedule without a return or other substantiating information may result in an informal claim and require a signature, depending on the situation.

    1. Schedules submitted to support an entry on the taxpayer’s original signed return do not require a signature.

    2. Schedules submitted to claim a credit or deduction not claimed on the original return must include the signature.

    3. Not all address change requests require a signature. Refer to IRM 3.13.5.28, Address Changes from Oral Statements/Telephone Contact, for additional information.

    4. Photocopies of facsimile transmitted signatures on Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, are acceptable.


21.5.1.4.12  (06-28-2010)
Tolerances

  1. Changes to prepaid credits:

    If ... Then ...
    written request is for additional withholding of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported with written documentation. Refer to IRM 21.6.3.4.2.2, Withholding (W/H) Tax Credit, for a listing of applicable documentation.
    written request is for additional withholding of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and all of the following criteria are met:
    1. The withholding credit was incorrectly reported, processed, or not reported at all, and
    2. the withholding relates to income already included on the original return, a previously processed amended return, or the amended return currently being processed, and
    3. there was no previous adjustment to the withholding tax credit on this module,
    allow the amount without written support.
    Fuel Tax Credit request is for an additional ≡ ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported by the Form 4136, Credit for Federal Tax Paid on Fuels.
    Regulated Investment Tax Credit is for an additional ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported by the Form 2439, Notice to Shareholder of Undistributed Long Term Capital Gains.

    Note:

    The Tax Withheld summary on Information Returns Transcript File On Line (IRPTR) may be used to allow withholding over the tolerance amounts if it appears the taxpayer reported all income.


  2. The applicable 94XX Form is required for tax decreases of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . See IRM 21.7.2.4.6(9), Adjusted Employer's Federal Tax Return or Claim for Refund, for the tolerance on the new adjusted employment tax returns. These include Forms 941X, 943X, 944X, 945X, and Form CT-1X.

  3. Accept the taxpayer’s figures when a discrepancy in the total tax for each tax period including allowable Earned Income Tax Credit (EITC) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    Do not consider the tolerance amount if the required schedules/attachments are missing. (Example: Taxpayer requests EITC and qualifying children are claimed without submitting the Schedule EIC). Advise the taxpayer they need to file a claim using the Form 843, Claim For Refund and Request for Abatement, or the Form 1040X, Amended US Individual Income Tax Return, and attach the corrected forms or schedules.


  4. Line by line verification of Amended or Supplemental "G" coded returns is not required with a tax adjustment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    Refer to the applicable section in IRM 21.7.2.4.6, Adjusted Employer's Federal Tax Return or Claim for Refund, for information related to verification of employment tax returns.



  5. Math verify EITC and/or the Child Care Credit when:

    • Math Error is involved

    • Amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ for either credit, and

    • Math verification was bypassed in original processing.


  6. Correct Item Reference Numbers (IRN) when the tax is reduced to zero, and items are over ≡ ≡ ≡ ≡ ≡ dollars.

  7. If the deposit and credit amounts posted to a module differ from the return tax liability by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , research to resolve any discrepancies.

  8. Allow BMF claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , excluding unallowable items or "CAT A" criteria.

  9. Do not forward a Math Error unsubstantiated protest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to Examination (excluding EITC Math Error cases).

21.5.1.5  (10-01-2011)
Correspondence Imaging System (CIS) Procedures

  1. The Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management receipts (including Form 1040X, Amended U.S. Individual Income Tax Return) into digital images and working the cases from those images. CIS moves Adjustments from a paper to a paperless environment. This section provides specific guidance for handling CIS cases.

  2. Additional CIS information, including the CIS Performance Guide (Course Number 6902c-203 CSR Guide), can be found under the Local/Sites/Other tab on SERP, followed by the Correspondence Imaging System (CIS) tab. It provides additional explanations, information, and instructions.

21.5.1.5.1  (08-30-2013)
CIS General Guidelines

  1. CIS cases are assigned by site to a generic employee number prior to being systemically reassigned and distributed to individual employees for resolution. The following numbers are used for each site:

    Campus Generic IDRS number
    Atlanta 0739900025
    Andover 0848900000
    Austin 0686100000
    Brookhaven 0138640000
    Cincinnati 0237500000
    Fresno 1042000000
    Kansas City 0938000000
    Memphis 0339300000
    Ogden 0439800000
    Philadelphia 0544300093

  2. CIS cases can be identified by the activity code present on the TXMOD control base. Each CIS case has a unique 10 character alpha numeric case identifier that begins with the letters CIS, (e.g., CIS1A2BCD1), and this identifier is displayed in the control base activity field. An alert also appears on the account summary screen on Account Management Service (AMS).

  3. In order to meet the correspondence 30 day time frame, CIS interim letters are generated on the 25th day in accordance with Policy Statement P-21–3. Refer to IRM 21.3.3.4.2, Policy Statement P-21-3 (formerly P-6-12) Procedures.

  4. Adjustments based on CIS cases can be recognized by the CIS indicator that posts as a part of the TC 29X transaction on TXMOD/IMFOL/BMFOL. On the ADJ54 screen, an entry of "1" is required in the CIS IND> field to indicate the adjustment is based on a CIS digital image. This field is systemically generated on adjustments initiated through CIS.

    Note:

    On BMF cases, the CIS indicator will not show on TXMOD if the adjustment is for a TC 290 .00 with no reference number changes. The indicator will remain on BMFOL.

    Example:

    A CIS adjustment posted to TXMOD will have a CIS indicator of 1 as shown below.
    290 02092004 0.00 200404 18254-407-05XXX-4 ADJ-RSN-CD>006-061-036- AMD-CLMS-DT>11202003 CIS-IND>1


  5. The CIS Case ID must be recorded on all CIS adjustments or IDRS inputs, such as credit transfers and entity changes.

    Note:

    The case ID is in addition to your required IRM remarks for resolving the case.

  6. You must enter a unique sequence number in the ADJ54 screen for each adjustment input. The sequence numbers used should be input in increasing numerical order, (e.g., 1, 2, 3 etc.).

  7. Capture the "request completed" screen for:

    • Command code (CC) LETER requests – If including an attachment with the letter, capture the LPAGE screen prior to transmitting the letter.

      Exception:

      Letter 4364C sent through the IAT xClaim tool is not required to be captured, unless the tool's "Write Your Own" option is used. When issuing the 4364C letter based on an adjustment that differs from the information submitted by the taxpayer, a complete corrected copy of the taxpayer's Form 1040X, Amended U.S. Individual Income Tax Return, is required to be sent to the taxpayer.

    • Credit transfers for non-related accounts

    • Credit transfers for related accounts resulting in a debit balance after the transfer

    • Payment date changes over $100

      Note:

      Additional information on credit transfers is located in IRM 21.5.8.3.1, Determining Source Document Requirement for Credit Transfers.

    • Command code PIFTD/FTDPN prints – See IRM 20.1.4.23, Manual Adjustments

    • Other items as identified in subject specific IRMs

  8. You should not close the IDRS control base of your CIS case when you execute an IDRS command. For example, when completing an ADJ54 screen, leave the CASE-STS-CD> field blank. Allow CIS to close the IDRS control base when you click the "close" button in CIS, after completing all actions.

  9. Do not attempt to take actions on CIS cases if IDRS is down. You may access and view cases, but you should not attempt actions that interact with IDRS.

  10. The CIS case message function can be used to leave detailed history regarding the case. A case message is not a permanent record.

  11. The CIS case note function is used when you want the information to become a permanent attachment to the case. The case note feature must be used when printing the image or a portion of the image for routing to another area.

    Example:

    Use a case note when there is no record of the action taken, such as "Phone call to TP – TP to fax missing schedule" .

    Example:

    A case note must be used to indicate a portion of the CIS case was forwarded to another area, such as "Form 9465 printed and routed to Collections" or "Form 2848 printed and forwarded to CAF" or "Original return printed and forwarded to SP for processing" .

  12. Contact the Taxpayer Advocate when the case has an open Taxpayer Advocate control prior to taking any case actions.

  13. Operations Assistance Request (OAR) cases routed as CAT-A criteria must have "HQ-Reserve 1" as the primary suspense reason on CIS. Use the additional suspense reasons for the type of case (e.g., EITC). Remarks can be used for further explanation.

  14. Cases routed as CAT-A are systemically recontrolled to Examination and placed in suspense until returned by the Examination Classifiers or by the current established expiration period (e.g., 180 days).

    Reminder:

    The taxpayer has a right to file suit for a refund pursuant to IRC Section 6532(a) when a claim for refund is not responded to within 180 days.

    Note:

    If an OAR case is received and the case is already recontrolled to Examination, the AM TAS Liaison must link the OAR case in Examination using HQ Reserve 1 suspense reason.

  15. Occasionally, two (or more) unrelated cases are scanned as one CIS image. In these instances, utilize "SPLIT-IMAGE" from the Suspend drop-down list in CIS and complete the Split Image Suspense page to indicate where the image should be split and which part of the image should be associated with the existing case. Refer to the applicable CSR User Guide for additional information on splitting images.

  16. All employees must discontinue identifying any taxpayer's account as a "Tax Protestor" . Do not use the term "Illegal Tax Protestor" or similar designations on IDRS, ACS, AMS, or CIS. This includes any comments, narratives, and/or histories. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use.

  17. Do not reopen a case from CIS archives unless immediate action can be taken. Reopening cases from CIS archives may create an overage case. Instead of reopening an archived case, you may utilize the create case option in CIS to create a new case based on the taxpayer's contact and link the newly opened CIS case to the archived case.

    Note:

    Examples of reasons to "link" cases instead of reopening:

    If... Then...
    Taxpayer (TP) sends additional correspondence after claim was adjusted Link new correspondence to original claim
    Claim closed to another area (e.g., Exam). Additional correspondence is needed Link new correspondence to original claim
    Transcript received on account Use receive date of transcript and link to original claim
    TP sends additional correspondence after amended return was adjusted Link new correspondence to original claim

21.5.1.5.2  (03-21-2013)
Cases Currently Assigned in CIS

  1. It is extremely important that CIS case controls not be closed on IDRS by anyone other than the CSR assigned the case. Follow procedures in IRM 21.1.3.20, Oral Statement Authority, when handling taxpayer inquiries.

  2. Category codes and/or program codes must be corrected on CIS cases when identified. Some common examples (not all inclusive):

    Example:

    CIS case coded as TPRQ, but XRET is attached. Update category to XRET and the program code to 40051.

    Example:

    CIS case coded as DUPF, XRET, or TPRQ but a Form 8379 is attached. Update category to DMFC with program code 97140 or DMFE (if the return is electronic) with program code 97144. See IRM 21.4.6.5.9, Form 8379 Injured Spouse Allocation, for additional instructions on processing Injured Spouse claims.

    Example:

    CIS case coded as DMFC, but the Form 8379 was submitted electronically with the original return. Update category to DMFE and the program code to 97144. See IRM 21.4.6.5.9, for additional instructions on Injured Spouse claims.

    Example:

    CIS case coded as DUPF, but identified as a mixed entity or scrambled SSN case. Update the category to MXEN or SCRM, along with the appropriate program code, as instructed in IRM 21.6.2.4.2.3, Preliminary Research.

  3. Occasionally, a CIS case will be scanned to an incorrect TIN or tax period.

    If the case is not an XRET, update the information on CIS with the correct TIN and/or tax period. The IDRS base will be closed on the incorrect TIN/tax period and the CIS case can be worked on the correct account.

    If the case is scanned as an XRET, a TC 971 AC 010 is generated, which creates an -A freeze on the incorrect account. Follow the procedures below to correct the CIS account and IDRS control:

    • Input a TC 971 AC 002 on the incorrect account with the cross reference information of the correct TIN/tax period.

    • Input a TC 290 .00 to release the -A freeze on the incorrect account.

    • Update the CIS information with the correct TIN/tax period.

    • Process the CIS case following normal procedures.

  4. The "Reroute" option in CIS prints a hardcopy of the case image and case notes (optional), along with a form that includes the particular routing information. The routing option in CIS also allows the print out to be directed to different CIS printers throughout the CIS enabled sites. The print out is then forwarded to the area designated on the routing sheet.

    If an IDRS control is required by the receiving area, you must manually open a control in IDRS to the appropriate employee number.

    Your local printer is also available, if it is necessary to have access to the printed case prior to routing. In these instances, you must retrieve, assemble, and place the documents in the appropriate routing bin.

    Note:

    Linked cases, IDRS screen captures, and attached files do not print when a case is routed. If any of these items must be attached to the case, print the items on your local printer and manually associate the printed documents.

    If you only need to route selected pages (e.g., Power of Attorney (POA) or Form 2848), print only those pages from the document viewer and manually prepare and attach a routing slip. Annotate the CIS Case ID on the upper left corner of the first printed page. Utilize the "Close" case option instead of the "Reroute" option in these instances.

  5. CIS offers multiple printer options when routing cases. Selecting the appropriate printer is vital to ensuring the case document is forwarded to the correct area in a timely manner. Delays can be minimized by selecting the correct printer for any rerouted case, as well as providing clear routing instructions. In most instances, you will select your Campus' Central printer. Some campuses have designated printers for certain reroute types, such as Automated Underreporter (AUR) routes. Additionally, special routing procedures are needed for reroutes to Examination as discussed in the following paragraphs.

  6. The "Reroute to Examination" option is utilized for any cases closed to Examination. Examples include the following:

    • Audit Reconsideration

      Note:

      BMF Audit Reconsideration may use the option "2 CAT A"

    • Open AIMS

    • Unsubstantiated Math Error referrals open on AIMS

    • Substantiated Math Error referrals with an open TC 420 or TC 570/573

    After entering the necessary comments on the routing form, select the Central printer for the site that input the previous audit assessment or the site with the open AIMS information as determined by the EXAM Employee Group Code (EGC) Contacts located under the "Who/Where" tab on SERP.

  7. The "Reroute to EITC" option should only be used if directed by Examination classifiers or if directed by command code DDBCK. Refer to IRM 21.5.1.5.8, Examination Selected Inventory and Command Code DDBCK, for additional information.

  8. A BMF case may occasionally be scanned as an IMF case and vice versa. In these situations, do not "reroute" the case, but utilize the "Update Case Data" function on CIS to change the information from one case type to another and select the appropriate campus from the reassign drop down listing. Refer to the CIS CSR Guide for step by step instructions for reassigning the case. The following table outlines where to reassign the cases.

    Site with case in CIS inventory: Reassign to:
    Ogden Kansas City
    Cincinnati Memphis
    Andover, Austin, Memphis, Philadelphia Cincinnati
    Atlanta, Brookhaven, Fresno, Kansas City Ogden
    International cases - BMF only Ogden
    International cases - IMF only Philadelphia
    NOL Carryback claims Refer to the table in IRM 21.5.1.4.2.3.1, Scanning of Carryback Claims

  9. Some cases must be printed locally and forwarded to the correct address. Some examples (not all inclusive):

    Example:

    Non-examination cases routed to a non-CIS area – Select your site's Central CIS printer. The Image Control Team (ICT) will forward the prints.

    Example:

    ITIN requests on Form W-7, Application for IRS Individual Taxpayer Identification Number, or ATIN requests on Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions – Select the local CIS printer. ICT will forward the prints with a Form 3210. Please include the following address in the routing remarks:
    IRS - AUSPC ITIN Unit Stop 6090 or
    IRS - AUSPC ATIN Unit Stop 6182
    3651 South Interregional Highway 35
    Austin, TX 78741

  10. Accounts Management (AM) frequently reassigns cases between the different campuses and employees. Prior to reassigning any CIS case, ensure the case is checked for potential statute issues. If no statute issue exists, check the “statute searched” box on the CIS case and reassign the case as directed. If the case reflects a tax increase/credit decrease within 90 days of the Assessment Statute Expiration Date (ASED), do not reassign the case, but forward the case to the Statute Team. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for additional information.

21.5.1.5.3  (05-24-2010)
CIS Source Documentation

  1. These are general guidelines related to CIS case processing.

  2. Non-Source Document (NSD) adjustments will be entered in the remarks section for most CIS adjustments (REQ54, REQ77, and ADD24/34/48) indicating to Files that no document is required to be filed. The CIS image is the source document and it remains on CIS for further recall if needed. Since the image will remain available on CIS, Alpha File association is also not necessary.

  3. The NSD adjustments should carry the appropriate blocking series as indicated in the subject specific IRM. For example (not all inclusive):

    Example:

    Adjustment without original return should be NSD with blocking series 05.

    Example:

    Adjustment when the original return has been scanned to the CIS case should be NSD with blocking 00.

    Example:

    Adjustment with a math error should be NSD with blocking 77/78. See IRM 21.5.4.4.1, Setting the Initial Math Error Action, for additional information.

    Reminder:

    If the original return was filed electronically, use blocking series 77 and utilize the "capture" feature to attach an IMFOLR or TRPRT screen.

    Example:

    Adjustment to disallow a claim should be NSD with blocking 98/99. See IRM 21.5.3.4.6.1, Disallowance and Partial Disallowance Procedures, for additional information on disallowing claims.

    Reminder:

    If the original return was filed electronically, use blocking series 99 and attach an IMFOLR/BMFOLR print. Do not use blocking series 98.

  4. Source Document (SD) adjustments are used, when a subject specific IRM reference requires a paper print be sent to Files. Certain IDRS screens and letters need to be printed and sent to Files in accordance with the retention period since this is the only record of the original information if it drops from IDRS.

    Example:

    Scrambled Cases: If a completed Letter 239C questionnaire was not received from at least one taxpayer, attach a copy of the Letter 239C and the history sheet to the most current year return on file for each taxpayer. See IRM 21.6.2.4.4Scrambled SSN Case Procedures, for further information on handling scrambled cases.

  5. CIS allows attachment of files to individual cases. This functionality allows documents to be saved to a CIS case for future reference, instead of associating the document with a paper case. Certain subject specific IRMs require attachment of documents to the adjustment. The CIS attachment function may be utilized in lieu of a paper attachment.

    Note:

    For detailed information on how to attach documents to a CIS case, refer to the applicable CIS CSR User Guide on SERP under the Local/Sites/Other tab and follow the links to Corresponding Imaging System (CIS).


    Some examples of required attachments (not all inclusive):

    Example:

    The automated Reasonable Cause Assistant (RCA) determinations must be attached to the CIS case. When attaching the RCA determination to the CIS case and not forwarding anything to files, the adjustment is input as NSD. See IRM 20.1.1.3.6.6, Attaching RCA Determination, for additional information.

    Example:

    Injured Spouse worksheets must be attached to the case. See IRM 21.4.6.5.11, Allocation of Injured Spouse Form 8379, for specific information.

    Example:

    Manual interest computations must be attached to the adjustment source document. See IRM 20.2.8.3, Manual Computations, for more specific information.

    Reminder:

    Data Security guidelines state that all sensitive data stored on a computer must be encrypted. Once the document has been attached to the CIS case, users should delete the document from their encrypted folder and from the recycle bin. Specific instructions on setting up an encrypted folder can be found in the CIS CSR User Guide.

21.5.1.5.4  (06-28-2010)
Viewing or Requesting Documents on CIS cases

  1. Any CIS user can view any open or closed case in CIS regardless of where it was scanned. Account Management Services (AMS) users also have the capability to view and print CIS images.

  2. A CIS case is identified by the activity code present on the TXMOD control base. Account adjustments based on a CIS case will reflect a CIS indicator >1 displayed on the TXMOD or a CIS-1 on the IMFOLA screen.

  3. Document requests from CIS sites are pulled and scanned in the Files function and the image is associated with the open CIS case. This includes requests from CIS users of other CIS campus Files functions. CSRs with CIS will input document requests using command code ESTAB with document request code "S" . This code is only used by those working on CIS and notifies Files to scan the requested document instead of sending the paper document.

    Note:

    Documents scanned after the CIS case is closed will not be associated and will create a new CIS case in the system. Review these documents to ensure any necessary actions have been taken and make any applicable corrections, if needed. Create a link between the newly created CIS case and the CIS case that created the document request. Close the newly created CIS case.

  4. Non-CIS Sites will use command code ESTAB with document request code "X" to request printed copies of a CIS scanned document. When a document request is received in Files for a TC 29X document input through CIS, the CIS case will be printed out and sent to the requestor along with Form 5147, IDRS Transaction Record. Files personnel must pull Form 5147 to identify the CIS Case ID. If the adjustment contains a "1" , the CIS Case ID will be printed in the remarks section of Form 5147. Files personnel will use this number to access the case through the CIS Application and complete the document request for the non-CIS user. After locating the case on the CIS workstation, Files personnel will print out the imaged case and route to the requestor.

    Note:

    When requesting the CIS document, entering the CIS ID (if available) in the remarks of the ESTAB request will help expedite the request in Files.

    Reminder:

    Account Management Services (AMS) users also have the capability to view and print the CIS images.

  5. Upon receipt of a document pulled on a CIS workstation or from AMS, you will notice it appears to be a photocopy of a document, as the original documents are preserved as digital images for the required retention period. The printed images may be used just as an original paper document. Returns that are printed from CIS images and sent for processing must be annotated with "CIS IMAGE —Do not correspond for signature " below the signature line. If no adjustment or reprocessing action is taken, destroy the photocopy following normal procedures.

21.5.1.5.5  (05-20-2011)
Processing/Reprocessing CIS Tax Returns

  1. For returns being sent for initial processing (i.e. return has not posted to another year or TIN), you should edit the return as identified below, and forward the return for processing. Submission Processing will correspond for any missing information on these returns.

  2. A return must be complete before it can be sent for reprocessing (i.e. return previously posted to another year or TIN). You are required to correspond for missing signatures, schedules, or forms prior to forwarding to Submission Processing. See IRM 21.5.2.4.23.7, Coding and Editing Procedures, for further information.

  3. To facilitate the processing of CIS returns, the correct tax period, taxpayer identification number, IRS received date (if not stamped on the return), name, and address of the taxpayer must all be clearly edited on the return as required in current procedures. See IRM 3.13.2.2.6, Sole Proprietors and Individual Taxpayers-Name Controls and FRCs, for further information regarding the name, and refer to IRM 21.5.2.4.23.7, for additional editing information.

  4. Corrections may be made to taxpayer entries by placing an"X" to the left of the incorrect entry and entering the correction to the left. Edits may be made on the CIS image using the annotation tools provided within the CIS Document Viewer. You may also print the document first and make your edits with red ink for IMF and Exempt Organization (EO) returns or green ink for other BMF returns.

  5. If the return is signed, use the Stamp or Text tool in the CIS Document Viewer to add "CIS IMAGE - Do not correspond for signature" to the return below the signature field and the CIS Case ID to the upper left corner of the return. This designation will prevent Submission Processing from treating the signature as a copy. Remember to click the Save button.

  6. If the return is not signed, refer to the following table:

    If ... Then ...
    The return is being forwarded for initial processing ,

    Note:

    These returns have not previously posted to an account and will not have a Document Locator Number (DLN).

    1. Submission Processing will correspond for the missing signature.

    2. Do not add the "CIS IMAGE - Do not correspond for signature" notation.

    The return is being reprocessed,

    Note:

    These returns have previously posted to another account and will already have a DLN.

    1. Correspond for the missing signature if not previously requested. Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, for additional details.

    2. After the signature is received or the suspense period has expired, add the "CIS IMAGE - Do not correspond for signature" notation.

  7. For campuses with Submission Processing (SP) – Print the complete return on your local printer and check the "Include Annotations" checkbox in the Print Document dialog box, which will include any editing on the printed copy. Underline edits with red ink (IMF) or green ink (BMF). For IMF reprocessable returns, attach Form 3893, Re-Entry Document Control, or other applicable form, and route the paper return to the appropriate stop. For BMF reprocessable returns, utilize Form 13596, Reprocessing Returns, and forward accordingly. See Exhibit 21.5.2-1, Preparing Form 3893, Re-Entry Document Control, or Exhibit 21.5.2-2, Preparing Form 13596, Reprocessing Returns, for instructions on preparing these forms. Returns being forwarded for initial processing are routed to SP using a Form 1725, or similar local routing slip.

  8. For campuses without Submission Processing (SP) – As SP locations are ramped down, the following procedures are necessary to help ensure the proper reprocessing of returns:

    • Complete all necessary edits to the CIS image of the return being reprocessed

    • Use the "attach" feature in CIS to attach a completed copy of the appropriate routing form

      Note:

      Form 3893 or Form 13596 is utilized when reprocessing the return. Form 3893 requires a valid DLN that corresponds with the processing site's location code. Form 1725 is used when forwarding the return for initial processing.

    • Suspend the case to your workleader/manager for review, including review of any statute issues

    • After review, the workleader/manager will add a case note documenting approval

      Note:

      If multiple images are attached to the CIS case, clearly identify which image should be forwarded for reprocessing.

    • Workleader/manager will notify the Inventory Control Manager (ICM) that they have a reprocessable return and provide the case ID

    • The ICM will contact the ICM at the partner campus with the details of the case

    • The partner campus will print the necessary information from the case, mark the necessary edits as outlined in (4) above, forward the return to SP, document the actions as a CIS case note, and follow up with the sending ICM

      Reminder:

      Check the "Include Annotations" checkbox prior to printing to include any edits on the return.

  9. Initiate any required actions (such as REQ54, REQ77, and FRM49) and then close the case. This is not a CIS Reroute. Leave a brief case note describing the action taken (e.g., TC 150 doc reprocessed to tax period XXXX or TC 976 doc reprocessed to TIN/EIN XX-XXXXXXX)

  10. Additional information about how reprocessed images are handled in Files can be found in IRM 3.5.61.2.5, Voided, Reinput, or Canceled Documents.

21.5.1.5.6  (10-01-2012)
Incomplete CIS Claims

  1. With CIS, it is no longer necessary to return the entire amended return or carryback claim to the taxpayer when additional information is needed. Refer to IRM 21.5.9.4.3, Rejecting Unprocessable Carryback Application/Claims for additional information on carrybacks.

  2. Attempt to contact the taxpayer by phone or use the appropriate "C" letter orForm 8009, We Need More Information To Process Your Amended Return, to request the missing forms, schedules, signatures, or other information.

    Note:

    If any information to complete the claim was requested via telephone and the taxpayer did not provide the information, ensure a detailed CIS case note documents the call prior to rejecting the claim and closing the case on CIS.

  3. If the amended return involves a tax increase and/or decrease in credit, refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for processing information. See IRM 21.5.3.4.3, Tax Decrease and Statute Consideration, for handling tax decreases/no tax change claims or amended returns received within 180 days of the RSED. Refer to IRM 21.5.9.4.3, Rejecting Unprocessable Carryback Application/Claims, for additional information on carrybacks.

  4. Transaction Code (TC) 971 with Action Code (AC) 270 indicates an amended return is being sent back to the taxpayer. Refer to the 6209 Code Retriever. If returning a CIS print of the amended return to the taxpayer, the TC 971 AC 270 should be input. If closing the case without sending a CIS print of the amended return to the taxpayer, the TC 971 AC 270 should not be input. Details on the different procedures are outlined in the following paragraphs.

  5. If using the "C" letter to request the missing information and not returning a CIS print of the amended return and the claim involves a tax decrease or credit increase:

    • Capture the LPAGE screen of the "C" letter request for the missing information.

      Reminder:

      If the tax decrease is comprised of additional income and additional deductions, the claim must be suspended after requesting the information. Refer to IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for additional information on handling these claims.

    • Input a TC 290 .00 to release the -A freeze

      Note:

      Do not input TC 971, AC 270.

    • Close the case.

  6. If using the Form 8009 to request the missing information or including a CIS print of the amended return as an attachment to a "C" letter and the claim involves a tax decrease or credit increase:

    • Print pages one and two of the amended return or carryback claim and any other pages specific to the issue.

      Note:

      Annotations can be made prior to printing to highlight any needed information.

    • Enter the CIS ID on the upper left corner of the first page of the claim and return the claim to the taxpayer.

      Caution:

      Extreme care must be taken to ensure that only the material relative to the taxpayer(s) to which the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.26, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

    • Circle out all received date(s) on the claim or amended return.

    • Input TC 971, AC270 using the current date for the transaction date (TRANS-DT).

      Note:

      It is not necessary to input TC 290 .00 on an IMF account. Input of the TC 971, AC 270, will release the "-A" freeze on an IMF account. BMF accounts still require the input of a TC 290 to release the "-A" freeze.

    • Attach a copy of the Form 8009 to the CIS case or provide complete details of the missing information in the case notes (e.g. Missing Schedule EITC, dependent TIN, missing signature, etc.). If using a "C" letter, capture the LPAGE screen.

    • Close the case. See IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for exceptions. See IRM 21.5.9.4.3, Rejecting Unprocessable Carryback Application/Claims, for additional information on carrybacks.

  7. If the response makes the previously rejected and closed case complete, make the adjustment and create a link between the active and archived cases.

21.5.1.5.7  (12-22-2009)
CIS Push Codes

  1. Initiate the push code without printing anything from CIS. Indicate in the remarks of the push code, "NSD Image retained in CIS " , or something similar. Ensure the CIS ID is also in the remarks field of the push code.

  2. When the original return posts, a CP98/198 will generate. Since the push code was input as a non-source document (NSD), the CP98/198 will be scanned without the push code document. The Image Control Team (ICT) will scan the CP98/198 to the specific employee number on the CP98/198 to ensure it is controlled to the previous CSR. If no specific number is provided, ICT will scan the CP98/198 to the general queue. The CP98/198 case in CIS can be linked to the original document and the case worked.

  3. Do not utilize push code procedures on CIS cases if it can be determined that the CIS case will not result in an adjustment to the account, such as Section 83(b) elections. In these instances, add a case note to identify what was received and close the CIS case, after addressing any other issues. The CIS image will remain available for future reference and does not need to be printed for association with the original return.

  4. Additional information about push codes can be found in IRM 21.5.1.4.4.1, TC 930 Push Codes.

21.5.1.5.8  (01-18-2012)
Examination Selected Inventory and Command Code DDBCK

  1. The Exam Selected Inventory is designed to route Exam selected cases quickly and directly to Exam personnel. CSRs will no longer select a printer for command code (CC) DDBCK selected cases. See IRM 21.6.3.4.2.7.17, EITC and Command Code DDBCK.

  2. CC DDBCK can be initiated through CIS with an IDRS Quick Click button. Unlike other quick clicks, the DDBCK button also gives you the option of capturing the DDBCK response screen to make it a part of your case.

  3. After selecting "Reroute to EITC" on the Active Case page, the "Active Case - Reroute to EITC" page will be displayed. The CSR will select the appropriate campus for the reroute from a drop down selection list. Once the reroute button is clicked, the case will be closed to the CSR and appear in the appropriate campus Exam Selected inventory.

    Note:

    It's strongly recommended to have CSRs "Reroute" cases designated for managerial approval. The case will be placed in the suspense queue, pending approval by the manager or designated lead. Any adjustment deemed necessary prior to using the "reroute" option should be reviewed by the manager or designated lead.

    Note:

    Local Examination may develop alternative methods for retrieving these cases as needed. In these instances, utilizing the "Reroute to EITC" option may not be necessary for every case and the user should follow local Examination guidance.

  4. CAT A classifiers may send copies of cases directly to the Exam Selected inventories while returning the original cases to the CSR for closure. If a CAT A classifier selects a case for examination, in the "Response" section of the "Suspense Case – Assistance" page, they will choose the "selected" radio button, along with "Correspondence Audit" from the "Audit" drop down selection list. This step activates another drop down selection list, where a campus is selected for the review. After performing these steps, the classifiers choose the "Return to CSR" button. A copy of the case is then automatically entered in the "Exam Selected Inventory" for the selected campus. The original case will be returned to the CSR for closure with a case note indicating the case was selected. The CSR will take appropriate actions to close the case (i.e., input TC 971-013, send Letter 86C, if required, and click the Close button). See IRM 21.3.3.4.2.1, Use of 86C letter, for additional information about the 86C letter.

21.5.1.5.9  (05-24-2010)
Correspondence Screening in CIS

  1. The Image Control Team (ICT) will perform an initial screening of all incoming correspondence. After the initial screening by ICT, the remaining correspondence will be reviewed by Customer Service Representatives (CSRs). This review will occur prior to scanning for IMF correspondence.

  2. Designated CSRs at each site will work the correspondence cases in CIS that have been identified by specific category codes and document types.

  3. The following sections and related exhibits provide additional details on this correspondence screening process.

21.5.1.5.9.1  (07-12-2013)
CSR Screening Prior to Scanning – IMF only

  1. For IMF, the CSR screening phase will review the incoming correspondence remaining after the initial Image Control Team (ICT) screening. Any reroute cases and classified waste will be identified and removed prior to scanning into the Correspondence Imaging System (CIS). The remaining cases will be identified by a specific document type and/or category code.

  2. Reroute cases will be forwarded to the correct area for resolution. A letter explaining the routing of the taxpayer’s correspondence is not required with reroutes identified during this screening.

    Note:

    Each case routed to another area will be reported as an uncontrolled case closure using program 710-40001.

  3. Classified waste should be handled as outlined in IRM 21.5.1.4.10, Classified Waste.

    Note:

    Each case identified as classified waste will be reported as an uncontrolled case closure using program 710-40001.

  4. The remaining cases will be sorted into a specific document type for scanning into CIS. The document types are as follows:

    • "Quick Closure" – generally cases that can be closed in an expeditious manner and on first touch.

    • "Corr - Loose Forms" – forms or schedules with no correspondence or information from the taxpayer

    • "Corr - Math Error" – taxpayer responses to math errors

    • "Corr - Payment Inquiry" – taxpayer inquiries related to missing or misapplied payments

    • "Corr - Penalty" – taxpayer inquiries related to penalties, including requests for penalty abatement

    • "Correspondence" – cases that require additional research or actions and cannot be classified into one of the other correspondence document types.

    Note:

    Certain case types will be identified with a specific document type, regardless of the steps or time involved in closing, while other case types will be designated based upon the review of the screening CSR. Specific details, including examples, for the different document types are included in Exhibit 21.5.1-2, CSR Screening of Correspondence.

  5. The screening will include the limited use of IDRS. Extensive research should not be performed at this step. IDRS usage guidelines are included in the CSR Screener Procedural Guidance document.

    Note:

    Any case requiring an IDRS action (e.g. address change, adjustment request) will be classified as one of the above document types and returned to the Image Control Team for scanning.

  6. Beginning July, 2011, certain CP notices mailed to the taxpayer will contain 2D bar codes. Some of the notices will display the entire Social Security Number (SSN) while others will have the SSN redacted/masked (e.g., xxx-xx-1234). Hand held scanner will be available for reading the barcode. If the hand held scanner is unable to read the bar code, command code (CC) TPIIP must be used. For additional information on command code (CC) TPIIP, refer to IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

21.5.1.5.9.2  (07-12-2013)
Quick Closure Case Handling within CIS – IMF only

  1. After the screening of correspondence, those cases identified as "Quick Closures " will be scanned into CIS as document type, "Quick Closure " using category code PHZ1. This includes any correspondence which can be closed in 15-20 minutes or less. "Quick Closure" document types must be reported to function code 710 and program code 40001. Additional information regarding function and program codes can be found on the OFP website

  2. The work will be scanned into the site’s general inventory queue and will be distributed based upon each CSR’s profile. A designated team(s) in each site will be profiled to receive the "Quick Closure" document types.

  3. "Quick Closure" cases require prompt analysis to determine the workability of the case, including issue identification, and the steps for resolution. If extensive research or analysis is involved, the case is no longer considered a "quick closure" and will be reclassified to the correct category code, document type, function and program code.

  4. "Quick Closure" cases will be closed/routed or reclassified as "correspondence" at first touch upon the initial review of the case.

  5. If unable to close the case expeditiously during the initial review, the case will be updated to the correct document type, category code, and program code, and reassigned to a number designated by the site. Once reassigned, these cases will be manually distributed to CSRs not working "Quick Closure" cases.

    Note:

    Ensure any interim steps are completed prior to reassigning the case (e.g., ordering documents, establishing an IRAF entity, etc).

  6. Since "Quick Closure" cases do not issue the automated acknowledgement letter, the CSR will notify the manager or lead of any cases over 20 days old. The manager or lead will take the necessary steps to ensure these cases are updated or closed prior to the 23rd day, so that any necessary interim letters will be issued timely.

  7. Additional details regarding the "Quick Closure" screening process, including specific examples, can be found in Exhibit 21.5.1-2., "CSR Screening of Correspondence " .

21.5.1.5.9.3  (06-01-2011)
Quick Closure Case Handling within CIS – BMF only

  1. Correspondence cases will be scanned into CIS with category code PHZ1 and worked under function 710 and program code 1000X. Additional information regarding function and program codes can be found on the OFP website.

  2. The work will be scanned into the site’s general inventory queue and will be distributed based upon each CSR’s profile or as directed by site management. A designated team(s) in each site will be identified to receive the PHZ1 category code.

  3. PHZ1 case processing is a method used to quickly identify and resolve simple case issues requiring minimal research.

  4. PHZ1 cases require prompt analysis to determine the workability of the case, including issue identification, and the steps for resolution. These cases will have limited IDRS usage. If extensive research or analysis is involved, the case is no longer considered a PHZ1 case and will be reclassified to the correct category code. Some examples include:

    • complicated penalty/interest computations

    • bankruptcy

      Note:

      Phase 1 will complete the insolvency contact sheet prior to forwarding to phase 2, leaving the entire case intact.

    • issues requiring assistance from Entity

    • multiple credit transfers (unless an IDRS Accessory Management Tool (IAT) will allow quick processing)

    • erroneous refunds

    • open controls outside of the site

    • multiple issues

    • pending transaction codes

    • cases requiring extensive research/actions

  5. If unable to close the case expeditiously, update the category code to PHZ2 and reassign to the designated IDRS number identified by the site.

    Note:

    If the case cannot be quickly closed due to a need for a document request, order the document before updating the category code to PHZ2 and reassigning to the pre-determined "wall queue" IDRS number. Once reassigned, the PHZ2 cases will be manually distributed to CSRs profiled to work correspondence cases.

  6. Beginning July, 2011, certain CP notices mailed to the taxpayer will contain 2D bar codes. Some of the notices will display the entire Social Security Number (SSN) while others will have the SSN redacted/masked (e.g., xxx-xx-1234). Hand held scanner will be available for reading the barcode. If the hand held scanner is unable to read the bar code, command code (CC) TPIIP must be used. For additional information on command code (CC) TPIIP, refer to IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

21.5.1.5.10  (02-16-2010)
Category A Screening in CIS

  1. Category A (CAT-A) 1040X claims will be identified by Submission Processing prior to forwarding to the Inventory Control Team (ICT).

  2. These CAT-A cases will be reviewed by a CSR(s) from Accounts Management . The reviewers will:

    • Ensure the identified claims meet CAT-A criteria as outlined in IRM 21.5.3-2, Examination Criteria (CAT-A) – General, and IRM 21.5.3-3, Examination Criteria (CAT-A) – Credits.

      Note:

      First-Time Homebuyer Credit claims meeting CAT-A criteria may not be forwarded for review.

    • Verify the CAT-A reason for referral is properly identified on the cover sheet attached to each claim.

    • Maintain the necessary reports documenting the accuracy of the CAT-A identification by Submission Processing.

    • Provide feedback regarding any mis-identification of the claims and return to the Submission Processing contact if not CAT A.

  3. After review, the cases will be forwarded to ICT for scanning to a designated IDRS number in CIS.

  4. Once scanned, a designated employee(s) at each campus will be assigned the cases for forwarding to the Examination Classifiers for audit determination.

  5. The designated employee(s) will be profiled as a work leader in CIS to enable the necessary reassignment of cases once the cases are returned from Exam. This designated employee(s) will:

    • Pull up the CIS case image to identify the "reason for referral" to CAT-A as documented on the cover sheet attached to the image,

    • Forward the case to CAT-A through CIS and select the appropriate "reason for referral" from the drop-down listing,

    • Reassign cases returned from Examination as directed by the Inventory Control Manager to a designated team(s) for completion.

      Note:

      Cases returned from Examination can be identified and sorted in CIS by clicking the appropriate column heading.

Exhibit 21.5.1-1 
Image Control Team Screening of Correspondence

ICT time spent screening the taxpayer correspondence is considered function code 720 and program code 34310. Additional information regarding function and program codes can be found on the OFP website. Additional details regarding the program codes and document types can be reviewed in the ICT Guides.

The initial ICT screening of correspondence will classify the easily recognizable correspondence into the following groups (or forward to the CSR screening phase):

  • Reroutes to the appropriate function

  • Obvious document types or category codes, such as First-Time Homebuyer Correspondence or Injured Spouse claims – pull and scan these document types/category codes appropriately

  • Document type "Quick Closure"

  • Document type "Corr - Loose Forms"

  • Document type "Corr - Math Error"

  • Document type "Corr - Payment Inquiry"

  • Document type "Corr - Penalty"

  • All other correspondence (including all loose forms) will be forwarded to CSRs for additional screening

    Note:

    Some sites may assign specific case types to a designated number.

For Computer Paragraph (CP) Notices - Routing Information - see IRM 3.10.72-3.

For Correspondex "C" letters - Routing Guide - see IRM 3.10.72-2 .

The following identifies some common reroutes that can be identified at this stage:

  • Exam issues – route if CP 22E, Examination Adjustment Notice, is attached

  • AUR – CP 2000, CP 2501, or Form 5564 Stat Letter

  • Form 8857, Request for Innocent Spouse Relief.

  • 2761C replies – forward to TPR or as directed by each site.

  • International correspondence – include specific routing information

    Note:

    International IMF correspondence can be scanned locally and forwarded to the Philadelphia Campus. International BMF correspondence can be scanned locally and forwarded to the Ogden Campus

  • Form 3949-A, Information Referral, or other informant correspondence

  • BMF cases received at IMF sites and vice versa

    Reminder:

    BMF cases will be scanned to the appropriate BMF site as outlined in the ICT Support Activities Guide.

  • Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter. - send to Integrity & Verification Operation (IVO) (location on letter), —

  • Letter 4401C, Phishing Email Victim Notification or Letter 4445C, TC971 AC501 Acknowledgement Notification

    Note:

    Andover ICT will forward these cases to the CSR phase of the screening process.
    Other sites will forward the cases to:
    Andover ICT
    310 Lowell Street
    Stop 360
    Andover, MA 01810-4500

The following case types will be forwarded to the CSR phase of the screening process:

  • General correspondence – anything not readily identified

  • Responses to interim letters (2644C/2645C)

  • Any correspondence over 45 days old

  • Payment or Notice stubs with information other than the taxpayer's phone number

  • Loose forms or schedules, unless specifically identified elsewhere in this exhibit

  • 12C letters

  • Loose certificates (e.g., death certificates, birth certificates)

The following will continue to be processed following local procedures:

  • Any loose Form W2 or Form 4852

  • Undeliverables

The following table identifies the proper classification and provides some additional details of some common case types (not all inclusive) that can be identified during the ICT phase of correspondence screening.

Document Type Examples
Quick Closures – Scan as category code PHZ1 with document type "Quick Closure"
  • Address changes

  • Forms or transcript requests

  • Payment or Notice stubs with phone numbers only

  • CP Notice 1378, Understanding Your Economic Stimulus Payment

  • CP12 series of math error notices

Loose Forms – Scan as category code LSFM with document type "Corr - Loose Forms"
  • Section 83b elections

  • Form 8606, Nondeductible IRAs

  • Other loose forms should be forwarded to the CSR screening phase

Reminder:

If correspondence is included with the form, forward to the CSR screening phase, unless the correspondence can be classified elsewhere (e.g., Form 8862 is classified as a math error).

Math Error – Scan as category code MATH with document type "Corr - Math Error"
  • Form 8862, Information to Claim Earned Income Credit After Disallowance

  • Any correspondence with a math error CP notice attached. Math error CP notices for inclusion include:

    • CP10 or CP10A

    • CP11, 11A, or 11M

    • CP13, 13A, or 13M

    • CP16

Payment Inquiry – Scan as category code PYMT with document type "Corr - Payment Inquiry"
  • Any correspondence which includes a copy of a canceled check

  • Payment/balance due stubs which include a statement indicating "previously paid" or something similar

    Note:

    Forward to the CSR screener if taxpayer correspondence or other information is also included.

Penalty – Scan as category code PLTY with document type "Corr - Penalty" Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts
Correspondence – Scan as category code TPRQ with document type "Correspondence"

Exception:

Correspondence with Economic Stimulus or similar designation will be scanned with category code SPC4.

  • All cases identified as document type "Correspondence" by the CSR screeners

  • 449C letter responses – scan to the IDRS number that generated the letter

  • 216C letter responses – scan to the IDRS number that generated the letter

  • 662C letter responses – scan to the IDRS number that generated the letter

  • 2364C letter responses – scan to the IDRS number that generated the letter

Note:

The ICM may direct some of these cases to a specific IDRS number.

Internal Transcript – Scan as category code TPRQ with document type "Internal Transcript"
  • CP 08, Additional Child Tax Credit

  • CP 09, Earned Income Credit - You May Be Entitled to EIC

  • CP 27, EIC Potential for T/P Without Qualifying Children

  • CP 85, Exam EIC "Soft" Notice

  • CP 87, Exam Dupe TIN Notice

Exhibit 21.5.1-2 
CSR Screening of Correspondence

This is a screening process with limited use of IDRS. The objective of this screening is to eliminate classified waste and routes prior to scanning into CIS and to further sort the correspondence into specific document types. Extensive research should not be performed at this step and IDRS should only be used when necessary. In addition to the IDRS usage guidelines included in the information below, additional IDRS usage guidelines are included in the CSR Screener Procedural Guidance document. Refer to Exhibit 21.5.1-3, IMF CSR Screener Procedural Guidance

Note:

Any case that can be closed in 15-20 minutes or less should be considered a Quick Closure Criteria. Cases will be scanned into CIS as document type "Quick Closure" , category PHZ1. using function and program code 710-40001.

CSR time spent screening the correspondence is considered function code 710 and program code 40001. All classified waste documents and all reroutes will be reported as uncontrolled closed cases. Additional information regarding function and program codes can be found on the OFP website

Exception:

For Andover CSR screeners, the time spent researching Identity Theft cases will be reported under function code 790 and program code 40010 (e.g. Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter, or Letter 4401C, Phishing Email Victim Notification, or Letter 4445C, TC971 AC501 Acknowledgement Notification ).

The CSR screening will review the correspondence and classify the documents into the following groups:

  • Classified waste – destroy the document in accordance with IRM 21.5.1.4.10, Classified Waste.

  • Reroutes – forward to the appropriate area

    Note:

    If multiple cases are erroneously routed to AM from the same area/site, notify the Inventory Control Manager so that feedback can be shared with the responsible areas.

  • Obvious document types or category codes, such as First-Time Homebuyer Correspondence or Injured Spouse claims – pull these documents for scanning to the appropriate document type/category code

  • "Quick Closure"

  • "Corr - Loose Forms"

  • "Corr - Math Error"

  • "Corr - Payment Inquiry"

  • "Corr - Penalty"

  • "Correspondence"

  • Other specific document types/category codes as identified (e.g. CP 08/09/27, 1040X, etc.)

    Note:

    When screening correspondence, ensure that the taxpayer identification information is available (e.g Social Security Number, name, and address)

In addition to the information below, each CSR screener should also refer to See Exhibit 21.5.1-1., Image Control Screening of Correspondence, for proper document classification of any case types missed during the initial ICT screening.

Specific information on some common case types (not all inclusive) is provided in the table below:

Reminder:

IDRS use will be limited to identification of possible classified waste/reroute situation or as otherwise indicated. Any case requiring an IDRS action (e.g., address change, adjustment request) will be classified as one of the document types and returned to the Image Control Team for scanning.

Case Type Examples
Classified Waste – Refer to IRM 21.5.1.4.10, Classified Waste, for additional information
  • Remittance advice/payment stubs (e.g., "Here's my payment" or just a payment stub with an amount)

    Note:

    Payment stubs with a phone number or other information should be forwarded as document type "Quick Closure" .

  • CP 08/09/27 indicating the taxpayer is not eligible

    Note:

    If not classified waste, scan as document type "Internal Transcript" .

  • "True duplicate" or "previous action" copy of a return

  • Responses to interim letters if the closing action was completed after the date of the taxpayer's response (i.e. "crossed in the mail " )

  • Correspondence with no taxpayer identifying information (i.e. No name or address)

  • Undeliverable CP 08/09/27 and CP 85/87

  • Replies to Letter 63C

  • Any other documents requiring no action or any documents not needed as substantiation for information on a return

Reroutes – forward to the appropriate area
  • Original returns forwarded to processing

  • Letter 12C replies when original return is still in ERS

  • Replies to open Examination issues

  • Open AUR cases

  • Collection issues

  • Loose forms needed in other areas

  • Letter 4310C - forward to Integrity & Verification Operation (IVO) (location on letter)

  • Letter 4401C or Letter 4445C replies or undeliverables

    Note:

    These cases should be forwarded to:
    Andover ICT
    310 Lowell Street
    Stop 360
    Andover, MA 01810-4500.

    Exception:

    Andover CSR screeners will perform IDRS research and classify the cases as indicated below.

Quick Closures – sort as document type "Quick Closure"
  • Quick Closures Criteria - Any and all correspondence including aged correspondence which can be closed in 15 - 20 minutes or less.

    Note:

    CSR judgement will be used in these instances. For example, a document with multiple pages and lots of information may require an excessive amount of time just for reading and should be classified as "Correspondence" instead of "Quick Closure" , unless another document type applies.

Loose Forms – Sort as document type "Corr - Loose Form"
  • Generally, any loose form or schedule that does not have taxpayer correspondence attached (some specific forms are included below) – check IDRS for reroute or classified waste/previous action on all loose forms unless indicated below

    Note:

    Some loose forms are exceptions and will be scanned to another document type. See "Loose Form Exceptions" below.

  • Loose certificates (e.g. death certificates, birth certificates) – check IDRS for reroute or classified waste/previous action

  • Letter 12C replies – check IDRS to determine if original return is still in Rejects (ERS)

  • Section 83b elections – do not check IDRS

  • Form 8606, Nondeductible IRAs – do not check IDRS

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

  • Form 8812, Additional Child Tax Credit

  • Form 14039, Identity Theft Affidavit

  • Loose Form Exceptions:

    • Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts – classify as document type "Corr - Penalty"

    • Form 843, Claim For Refund and Request for Abatement, if requesting a penalty abatement – classify as document type "Corr - Penalty"

    • Form 8862, Information to Claim Earned Income Credit After Disallowance – classify as document type "Corr - Math Error"

Math Error – Sort as document type "Corr - Math Error"
  • Any correspondence in response to a math error condition

  • Form 8862, Information to Claim Earned Income Credit After Disallowance

  • Includes any correspondence with a math error CP notice attached

  • Classify as math error without further analysis if any of the following CP notices are attached:

    • CP10 or 10A

    • CP11, 11A, or 11M

    • CP13, 13A, or 13M

    • CP16

Payment Inquiry – Sort as document type "Corr - Payment Inquiry"
  • Taxpayer correspondence which includes verbiage related to missing payment, including a payment or notice stub with a statement indicating "previously paid" or similar statement

  • Any correspondence which includes a copy of a canceled check

Penalty – Sort as document type "Corr - Penalty"
  • Penalty abatement requests and inquiries

  • Form 2210

  • Form 843, Claim For Refund and Request for Abatement, if filed for a penalty abatement – If not a penalty abatement, sort as document type "Correspondence"

    Note:

    Civil penalty abatement requests should be researched on IDRS for possible reroute prior to classification.

Correspondence – Sort as document type "Correspondence"
  • Examination issues

  • AUR issues

  • Balance due explanation

  • Form 843, Claim For Refund and Request for Abatement, if not filed for a penalty abatement

    Note:

    If filed for a penalty abatement, sort as document type "Corr - Penalty"

    .

  • 449C letter responses – separate for scanning to the IDRS number that generated the letter

  • 216C letter responses – separate for scanning to the IDRS number that generated the letter

  • 662C letter responses – separate for scanning to the IDRS number that generated the letter

  • 2364C letter responses – separate for scanning to the IDRS number that generated the letter

  • Any cases as identified by the Inventory Control Manager

  • Specialized cases identified by each site, such as interest computation/abatement claims

  • Any correspondence not applicable to another document type after IDRS research

Note:

Cases related to the Economic Stimulus Payment should be classified as document type "correspondence" , but separated from the remaining correspondence document types for scanning as category code SPC4.

1040X
  • Any Form 1040X, Amended U.S. Individual Income Tax Return, missed in the ICT screening

  • Any loose Form 1040 series return

Internal Transcript
  • CP 08, Additional Child Tax Credit

  • CP 09, Earned Income Credit - You May Be Entitled to EIC

  • CP 27, EIC Potential for T/P Without Qualifying Children

  • CP 85, Exam EIC "Soft" Notice

  • CP 87, Exam Dupe TIN Notice

ID Theft – Andover CSR screeners only

Note:

Andover CSR screeners will sort with document type "ID Theft" and the applicable category code.

  • Letter 4310C replies or undeliverables – use category code IDT3

  • Letter 4401C replies or undeliverables – use category code IDT4

  • Letter 4445C replies or undeliverables – use category code IDT5

    Note:

    Andover CSR screeners will research IDRS to identify the appropriate TIN and notate the TIN on the case. The cases will be scanned to a specific IDRS number as identified by the site.

Exhibit 21.5.1-3 
IMF CSR Screener Procedural Guidance

Enhanced Use of IDRS

Note:

These items are not all inclusive. Any case that can be closed in 15-20 minutes or less should be considered a Quick Closure Criteria. Remember, CSR screeners are not trying to work the case to resolution.

There are no changes to current procedures for any cases that can be clearly identified as meeting reroute or classified waste criteria without the use of IDRS. Prior to sending the remaining cases to be scanned, briefly review IDRS to look for additional potential reroute or classified waste criteria as follows:

Command Code (CC) SUMRY response shows:

  1. Open controls - research TXMOD for possible reroute criteria

  2. Pending actions - briefly research TXMOD for possible previous action/classified waste criteria. If this cannot be determined quickly, then send case to be scanned.

  3. No control/action - send document to be scanned.

Review collection status on CC SUMRY/TXMOD

  1. Status 22 - route to ACS unless case requires an adjustment action

  2. Status 26 - research TXMOD for Revenue Officer (RO) assignment number on any tax period and route to RO if applicable. See IRM 21.3.12.6.2, Status 26 Modules for more information.

  3. Status 42, 43, 44, 46, or 91 - route to Compliance

  4. Status 53 - research TXMOD for CNC criteria and route to Compliance unless case requires an adjustment action

  5. Status 60 - route to Compliance unless case requires an adjustment action

  6. Status 71 - research TXMOD for TC 780; if present, reroute to OIC

Review freeze codes on CC SUMRY/TXMOD

  1. F- - route to Ogden Frivolous Return Program

  2. -J - route to Exam

  3. -L - research AMDISA for AIMS status, route if appropriate

  4. -Q - research TXMOD/AMDISA for reroute criteria

  5. -R - research TXMOD/ENMOD for Integrity & Verification Operation (IVO) criteria

  6. T- - TDA status. See Status 22 and Status 26 above

  7. U- - see Status 60 above

  8. -Y - research TXMOD for TC780; if present, route to OIC

  9. -Z - research TXMOD/AMDISA for Project Code; if 0173, 0263, 0390, 0584, 0603 or 0611, route to Exam. Exception - if TC421 has posted, route to IVO or CI as indicated in the module. Combination "-L" and "Z" freeze. When both are present, research CC AMDISA. If the Audit Information Management System (AIMS) status code is 08 or less, Criminal Investigations (CI) retains control of the case. If the AIMS status code is 09 or greater, Examination has jurisdiction.

Additional Quick Closure Criteria

Note:

Additional case types will be classified as Quick Closures so they can be worked expeditiously. Cases will be scanned into CIS as document type "Quick Closure" category PHZ1 using function and program code, 710-40001.

Existing Quick Closure Criteria:

  • Address Changes

  • Forms and Transcript requests

  • Notice stub with phone number only

  • Payment acknowledgement (payment with green money)

Additional Quick Closure Criteria

  • CP12 series of math error notices

  • 12C and 143C letters

  • Math error responding to SSN change

  • Dependent / exemption issues

  • Schedules related to credits

  • Penalty abatement related to failure to file/pay on a single tax period


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