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Part 21. Customer Account Services

Chapter 7. Business Tax Returns and Non-Master File Accounts

Section 1. BMF/NMF Miscellaneous Information (Cont. 1)

21.7.1  BMF/NMF Miscellaneous Information (Cont. 1)

21.7.1.4 
BMF/NMF Adjustment Procedures

21.7.1.4.8 
Federal Tax Deposits (FTDs)

21.7.1.4.8.1 
Electronic Federal Tax Payment System (EFTPS)

21.7.1.4.8.1.7  (10-01-2009)
Federal Reserve Electronic Tax Application (FR-ETA) Payments - Same-day Payment - IMF Taxpayer

  1. Procedures for allowing an IMF taxpayer to use the same-day payment system differ from BMF. If the taxpayer is currently enrolled in EFTPS and makes recurring payments, their Payment Instruction Booklet provides the instructions about making the payment.

  2. If a non-enrolled individual taxpayer needs to make an emergency same-day payment for a unique situation, such as to settle a litigation/bankruptcy case, settle an estate, prevent a lien/levy from being placed on the account or any other unique situation, the taxpayer needs to first contact their financial institution to determine:

    • If their financial institution offers this service, and

    • What fees their financial institution charges for this service

  3. Fees generally range from $10 to $30 for each FEDWIRE payment. Therefore, each payment amount is generally a large dollar figure.

    Note:

    The Customer Service Representative may contact the EFT Analyst at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to receive special instructions for the taxpayer. These payments are tracked for reporting purposes. If the EFT Analyst is not available at that number, call the back-up analyst at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . These are internal use only numbers. Do not give out to taxpayers.

21.7.1.4.8.1.8  (10-01-2008)
Federal Reserve Electronic Tax Application (FR-ETA) Payments - Same-day Payment - BMF Taxpayer

  1. Business taxpayers who require same-day settlement may use the EFTPS system even if they are not currently enrolled in the system. Enrolled taxpayers have the ability to make a same-day payment. The instructions are located in their Payment Instruction Booklet. All same-day payments are sent to the Minneapolis Federal Reserve Electronic Tax Application (FR-ETA) by the business taxpayer's financial institution.

  2. If a taxpayer is not enrolled, the taxpayer may require assistance in directing its financial institution to the proper format for making the payment. Financial institutions have two Fedwire options for making a federal tax payment. It is very important that their bank use the proper format. The taxpayer's financial institution needs to follow the most current procedures outlined in Sections 3 and 10 in "Making EFTPS Same-Day Federal Tax Payments, Guidelines for Financial Institutions" at http://www.frbservices.org/files/serviceofferings/pdf/Sameday.pdf .

  3. Fedwire Funds Transfer begins daily operations at 12:30 a.m. Eastern Time (ET). The current hours for FR-ETA are 8:45 a.m. to 5:30 p.m. ET. Same-day federal payment transactions sent after 12:30 a.m. and before 8:30 a.m. ET are queued for processing when FR-ETA opens for the day. Tax payments sent AFTER the 5:00 p.m. ET cutoff time, are rejected and ARE NOT processed the next day. It is recommended that financial institutions transmit the transaction well in advance of the cutoff time. Taxpayers should make arrangements to have their financial institution notify them immediately if a payment is rejected and returned, so that the transaction can be corrected and resubmitted before the 5:00 p.m. ET cutoff time.

  4. Prior to 2004, FR-ETA payments were identified by payment method 3 or 4 in the second position of the EFT number. Currently, it is only payment method 3 identifying the FR-ETA payments. The taxpayer's bank may call the FR-ETA toll-free Customer Service number at 1-800-382-0045 for assistance in making their payment, or in resolving problems with their FR-ETA payments.

21.7.1.4.8.1.9  (10-01-2009)
FTD Penalties and Penalty Relief on EFTPS Payments

  1. EFTPS depositors are subject to the same FTD penalties as other depositors, including a 10% penalty for avoiding the required deposit method. See IRM 20.1.4.1.3.1, Electronic Funds Transfer (EFT), and IRM 20.1.4.2.1, Time Sensitive Four Tier Penalty System.

  2. Various forms of penalty relief have been granted for taxpayers. See IRM 20.1.1, Introduction and Penalty Relief, for information on penalty relief.

21.7.1.4.8.2  (10-01-2009)
Authorized Depository

  1. Certain taxpayers are mandated to use EFTPS to deposit taxes. See IRM 21.7.1.4.8.1.3, EFTPS Deposit Requirements.

  2. Authorized depositories are required to accept cash, postal money orders, checks or drafts drawn on and to the order of the depository.

  3. Businesses not using EFTPS use FTD coupons to deposit required taxes with an authorized financial institution designated as a depository for federal taxes. FTD coupons are processed through the SCRIPS system.

  4. Banks are not required to accept FTD coupons.

  5. Failure to make deposits on time, with an authorized depository or by EFTPS (if required), can result in a deposit penalty. See IRM 20.1.4.2.2, Deposit Due Dates, for more information.

  6. Remind the taxpayer to check any special banking rules established by the depository.

    Example:

    Deposits made after a certain time (taxpayer needs to know the time for his particular depository) may be credited as a payment made the following day.

  7. If taxpayer has an inquiry on the FTD system or requests additional FTD coupons, review the deposit rules with the taxpayer from Publication 966, Electronic Choices for Paying Your Federal Business Taxes, Publication 15, Employer's Tax Guide, and IRM 20.1.4, Failure to Deposit Penalty.

21.7.1.4.8.3  (10-01-2008)
Mailing Tax Deposits to a Campus

  1. If the taxpayer applied for and has not received an EIN (or not applied for an EIN), inform him/her an EIN can be obtained immediately using the online EIN application located on the IRS Website. (Enter Keyword: EIN.) The taxpayer can also call 1-800-829-4933 to obtain an EIN. See IRM 21.7.13,Assigning Employer Identification Numbers (EINs), for more information. See IRM 20.1.4.1.3.6,Depositing by Mail to an Authorized Depository (Timely Mailed/Timely paid Provision), for more information on depositing by mail.

  2. See IRM 21.7.1.4.8.4.1, Resolving Inquiries Involving FTD Coupons, for more information on making deposits and encouraging taxpayers to use EFTPS.

  3. If the taxpayer is not required to use EFTPS, advise the taxpayer to use Form 8109-B, over the counter coupon, to make the deposit.

    1. Make the check, money order, etc. payable to the United States Treasury, and

    2. Show the taxpayer’s name (as shown on Form SS-4), EIN, type of tax, period covered, and address.

  4. An exception to mailing the deposit to the authorized depository arises only when the taxpayer is a first time depositor of employment taxes, cannot timely obtain a blank FTD coupon, insists on mailing the deposit, and a deposit is due. In these situations:

    1. Advise the taxpayer to mail his or her deposit directly to the campus, and

    2. Include with the deposit, the taxpayer’s name, EIN, type of tax and tax period.

  5. Advise the first time depositor when mailing payment to a campus:

    1. A FTD penalty will not be assessed in the first quarter that a taxpayer is required to make an employment tax deposit.

    2. However, any subsequent non-receipt of coupons cannot be used to establish reasonable cause.

  6. Under IRC 7502(e)(3), depositors who are required to deposit taxes more than once a month cannot rely on the timely mailing rule for tax deposits of $20,000 or more. The deposits must be received by the due date, or the failure to deposit penalty may apply.

21.7.1.4.8.4  (10-01-2009)
Forms 8109/8109-B, FTD Coupons

  1. When use of the Electronic Federal Tax Payment System (EFTPS) is not required, a taxpayer (or a tax practitioner representing the taxpayer) may use Federal Tax Deposits (FTD) coupons to make their deposits with an authorized depository. See IRM 21.7.1.4.8.1.3, EFTPS Deposit Requirements.

  2. There are two types of FTD coupons:

    • Form 8109, FTD coupon book (Preprinted)

    • Form 8109-B, FTD coupon (Over-the-Counter), available as a substitute for Form 8109

  3. Form 8109 is a scannable paper coupon printed in a booklet format. Each booklet contains 24 personalized coupons, a Form 8109-C, FTD Address Change, and filing instructions. Form 8109-C is used to make a change to the FTD address, however, Form 8109–C will not change the address of record.

    Note:

    If the taxpayer requests a change to the address of record, Form 8822, Change of Address, must be submitted.

  4. The Form 8109 is designed to automatically reorder FTD coupon books when the sixth or seventh coupon is used (AUTOGEN). FTD coupon books are printed and mailed by an independent vendor. See IRM 20.1.4.1.3.4, Federal Tax Deposit Coupons, for additional information on AUTOGEN.

    Exception:

    A portion of current FTD coupon payers will be automatically pre-enrolled in EFTPS. These businesses will subsequently receive one Form 8109–B and an EFTPS PIN package containing instructions for activating their EFTPS enrollment. They will no longer automatically receive FTD coupons in the mail. For additional information see EFTPS Briefing Guide for Express Enrollment for FTD Coupon Payers.

  5. Form 8109-B is an Over-the-Counter coupon available as a substitute for Form 8109. Form 8109-B should only be used when absolutely necessary. These forms are blank and contain specific instructions that must be followed. Failure to follow these instructions may result in a FTD being applied to a wrong account, form, or tax period.

  6. When employers request an Employer Identification Number (EIN) and indicate they will be paying employees, they are pre-enrolled in the Electronic Federal Tax Payment System (EFTPS) as part of our express enrollment initiative. These new businesses will subsequently receive one Form 8109–B, and an EFTPS PIN package containing instructions for activating their EFTPS enrollment. For additional information see Publication 4275, Express Enrollment for New Businesses.

    Exception:

    Taxpayers who opt to view their CP 575 online will not receive Form 8109-B.

  7. Federal Reserve Banks (FRBs) no longer accept FTD coupons. However, all other authorized financial institutions continue to accept them. FTD payments made by mail must be paid by check, postal money order, or cashiers check and payable to "Financial Agent" . Canadian checks are accepted if the funds are in U.S. dollars and state "U.S. Dollars" or "U. S. Funds" on the face of the item. Third party checks sent to the "Financial Agent" must be endorsed by the taxpayer. See IRM 20.1.4.1.3.6, Depositing by Mail to an Authorized Depository (Timely Mailed/Timely paid Provision), for more information on depositing by mail.

    Caution:

    Taxpayers should not make FTD payments by mail, unless absolutely necessary. In mailing a tax payment, taxpayers risk having the check delayed in the mail. This adds to the risk of incurring an FTD penalty for late deposit. All payments by mail are considered timely if the taxpayer establishes it was mailed in the U.S. at least two days before its due date.

  8. FTD payments made to the "Financial Agent" must be sent to the address below:

    Financial Agent
    FTD Processing
    P.O. Box 970030
    St. Louis, MO 63197

21.7.1.4.8.4.1  (10-01-2009)
Resolving Inquiries Involving FTD Coupons

  1. Always encourage the taxpayer to use EFTPS to make deposits. Inform the taxpayer he/she receives a PIN in 1-2 weeks at the address of record. Even if the taxpayer decides to continue using coupons, enrolling in EFTPS will allow them to make timely payments now and in the future.

    Reminder:

    If taxpayers are already pre-enrolled, encourage them to activate their Express Enrollment.

  2. If the taxpayer needs to make a deposit today, explain to the taxpayer he/she can make a same-day deposit using a wire transfer from his/her financial institution.

    Wire Transfers
    Individual See IRM 21.7.1.4.8.1.7, Federal Reserve Electronic Tax Application (FR-ETA) Payments - Same-day Payment - IMF Taxpayer.
    Business See IRM 21.7.1.4.8.1.8, Federal Reserve Electronic Tax Application (FR-ETA) Payments - Same-day Payment - BMF Taxpayer.

  3. If the taxpayer wants additional information about EFTPS, order Publication 966, The Secure Way to Pay Your Federal Taxes for Business and Individual Taxpayers, and tell the taxpayer you are sending it to him/her for future reference.

  4. Use Command Code (CC) BMFOLE to determine if the taxpayer is required to use EFTPS. If the Electronic Deposit Year is equal to or earlier than the current year, the taxpayer is required to use EFTPS. If the taxpayer is required to use EFTPS:

    • Provide the web address www.eftps.gov and

    • Provide the EFTPS assistance phone number. See IRM 21.7.1.4.8.1.1(2), EFTPS Enrollment.

  5. If the taxpayer is not required to use EFTPS and the taxpayer does not have the required FTD coupons (also applies to a practitioner requesting FTD coupons for the taxpayer):

    1. Provide FTD coupons only to the taxpayer or taxpayer's authorized representative (officer of the company - including individual authorized to pay/deposit taxes, POA on file, or Form 8821 on file).

      Caution:

      If you cannot verify you are speaking or corresponding with the authorized personnel described above, issue the FTD coupons to the address of record.

      Note:

      Additional Taxpayer Authentication (High Risk) is NOT required to provide FTD coupons. If the inquiry involves more than providing FTD coupons, follow IRM 21.1.3.2.3(5), Required Taxpayer Authentication .

    2. Order two (the maximum) FTD coupon books using CC FTDRQR, unless the taxpayer requests only one. If the name and address do not appear on CC FTDRQR format, use FTDRQI and verify all entity information before input.

      Note:

      Always check the FTD COUPON REORDER DT field or DATE-BOOKS-ORDERED field on CCs BMFOLF or FTDRQ to identify the last date coupon books were ordered. If coupon books have been ordered with the same entity information within the last 30 days, do not order new coupon books.

      Caution:

      If the taxpayer request the coupons be mailed to an address other than the one showing on CC FTDRQR, you may do so as long as you verify you are speaking to, or have a written request from, the taxpayer or taxpayer's authorized representative. For the rules regarding authentication, see IRM 21.1.3, Operational Guidelines Overview .

    3. Send the taxpayer four Forms 8109-B (two if monthly depositor) completed with the taxpayer's EIN and address and an additional four blank Forms 8109-B (two if monthly depositor) to the taxpayer or taxpayer's authorized representative.

      Note:

      It is acceptable to send eight completed Forms 8109–B, (four if monthly depositor) if you have access to a program such as SWFT (Standard WorkFlow Tools) which generates pre-printed Forms 8109–B. If you do not have access to a system such as SWFT follow the procedures described above.

      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, see IRM 21.3.3.4.26,Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors.

    4. Inform the taxpayer to use the completed Forms 8109-B first. If it becomes necessary to use the blank Forms 8109-B, he/she must enter the EIN, name, and address EXACTLY as on the four completed Forms 8109-B. Failure to do so can result in the payment being misapplied.

    5. Inform the taxpayer Form 8109-B cannot be reproduced/photocopied and is used only as an interim measure until preprinted coupons are received.

    6. Advise taxpayer he/she will receive Form 8109 FTD coupon book(s) in five to six weeks.

  6. If the tax practitioner requests a supply of Forms 8109-B be mailed to other than an address of record:

    1. Advise practitioner the request must be in writing on company letterhead and the quantity is limited to 25 coupons per request.

    2. Send these requests to the National Distribution Center at the address listed below:

      Internal Revenue Service
      National Distribution Center
      1201 N. Mitsubishi Motorway
      Bloomington, IL 61705–6613

21.7.1.4.8.4.2  (10-01-2009)
Form 8109-B Procedures for Taxpayer Assistance Centers

  1. Verify it is the taxpayer, or individual with POA or Form 8821 on file.

    Reminder:

    Publication 4679, Don't Stand In Line - Pay FTDs Online, will be provided to taxpayers and/or tax practitioners when Forms 8109-B are distributed or if there are questions pertaining to their distribution. This publication may be distributed by the Initial Assistance Representative (IAR) during the greeting and questioning to determine the type of assistance needed.

  2. If it is the taxpayer or an authorized individual, follow the procedures in IRM 21.7.1.4.8.4.1, Resolving Inquiries Involving FTD Coupons.

  3. If it is not an authorized individual, ask them to verify name, address, and EIN of taxpayer.

    If And Then
    The information matches (if the information given is extremely close to our records, e.g., a transposition error) The taxpayer is not required to use EFTPS

    1. Complete Forms 8109-B as described in IRM 21.7.1.4.8.4.1(5)(3), Resolving Inquires Involving FTD Coupons.

    2. Place them in a sealed envelope with the name of the taxpayer. Do not input address on envelope.

    3. Instruct the individual to deliver them to the person responsible for paying and depositing taxes.
    The information does not match The taxpayer is not required to use EFTPS

    1. Inform the individual there is a problem with the information provided and we have to mail the Forms 8109-B to the taxpayer.

    2. Complete Forms 8109-B as described in IRM 21.7.1.4.8.4.1(5)(3), Resolving Inquires Involving FTD Coupons.

    3. Mail the Forms 8109-B to the taxpayer.
    The individual insists they need the Forms 8109-B today The taxpayer is not required to use EFTPS You can attempt to contact the taxpayer by phone to obtain permission to issue the Forms 8109-B to the individual.
    Permission is obtained The taxpayer is not required to use EFTPS

    1. Complete Forms 8109-B as described in IRM 21.7.1.4.8.4.1(5)(3), Resolving Inquires Involving FTD Coupons.

    2. Place them in a sealed envelope with the name of the taxpayer. Do not input address on envelope.

    3. Instruct the individual to deliver them to the person responsible for paying and depositing taxes.
    Permission is not obtained The taxpayer is not required to use EFTPS Inform the individual they can use the Federal Reserve Electronic Tax Application (FR-ETA) Same-day Payment even if they are not currently enrolled in the EFTPS system. See IRM 21.7.1.4.8.4.1.Resolving Inquiries Involving FTD Coupons, and IRM 21.7.1.4.8.1.8, Federal Reserve Electronic Tax Application (FR-ETA) Payments - Same-day Payment - BMF Taxpayer, for additional information.
    The taxpayer is required to use EFTPS (whether address matches or not) You can call the taxpayer at that time

    1. Inform the individual there is a problem with the information provided and you cannot issue the Forms 8109-B.

    2. Inform the taxpayer of the EFTPS requirement and explain you cannot issue the Forms 8109-B.

    3. Hand the phone to the individual so the taxpayer can inform the individual of the reason the Forms 8109-B cannot be given to them.

    The taxpayer is required to use EFTPS (whether address matches or not) You do not call, or are unable to contact the taxpayer by phone

    1. Apologize to the individual for being unable to provide the Forms 8109-B.

    2. Correspond with the taxpayer concerning the EFTPS requirement.

    3. Provide information regarding the EFTPS website and phone numbers in IRM 21.7.1.4.8.1.1, EFTPS Enrollment.

21.7.1.4.8.5  (10-01-2009)
Agent Prepared FTDs

  1. Designated reporting agents (payroll services, banks, etc.) make FTDs for their clients. (See Rev. Proc. 2007-38, Rev. Proc. 98-32, or Publication 1474 for requirements.) FTDs for Forms 941, 943, 944, and 945 can be made by reporting agents after Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers, is submitted and approved. (See IRM 21.7.2.3.1, Reporting Agents File.)

  2. Process payment-tracer requests or other inquiries regarding agent- prepared FTDs normally. Taxpayers sign Reporting Agent Authorizations allowing the Service to disclose deposit-related information to Reporting Agents. Use CC RFINK to verify.

  3. Rev. Proc. 2007-38 and Rev. Proc. 98-32 provide procedures for agent prepared electronic deposit reporting.

21.7.1.4.8.6  (10-01-2006)
Transmission of FTDs to the Campus

  1. Depository banks use Treasury Form 2284, Advice of Credit, to send FTD deposits directly to the campus.

  2. If Form 2284 is not available, depository routes the FTD coupons to the FRB. The FRB then prepares the Advice of Credit and forwards the IRS copy and the coupons to the campus.

  3. Form 2284 is not stocked by IRS offices and forms distribution centers. If banks need additional copies, they use Form 5522, FTD Transmittal Reorder, to order Form 2284. Banks receive a supply of Forms 5522 with their initial supply of Forms 2284.

  4. Refer specific inquiries you cannot resolve with this procedural information to the FTD Interagency Coordinator (IAC) at the campus. A list of IACs can be found at http://serp.enterprise.irs.gov/databases/who-where.dr/interagency.htm .

21.7.1.4.8.6.1  (01-01-2006)
Form 5521 Preaddressed Label used by Commercial Banks and Form 9155, FTD Transmittal Reorder Form.

  1. Commercial banks use Form 5521 to mail their tax deposits to the appropriate campus. Commercial banks order these labels by submitting Form 9155. They receive Form 9155 with each order of Forms 5521 received.

  2. If the commercial bank has lost or misplaced the Form 9155 and cannot download the Form 9155 from www.irs.gov, they must call the FTD Interagency Coordinator (IAC) listed under http://serp.enterprise.irs.gov/databases/who-where.dr/interagency.htm at the campus where they mailed their previous forms to obtain new labels.

  3. If they do not know which campus they dealt with in the past, they must call 1-888-568-7343 to determine the correct campus to call.

21.7.1.4.9  (10-01-2009)
Fiduciary Name/Address Change

  1. There are instances where you can make a fiduciary/address change.

    If you receive... Then ...
    An amended fiduciary return (with a jurat signature) that by-passed processing where the fiduciary name/address are different than Master File Change fiduciary name/address, per Form 1041.
    A telephone contact where the caller can fax a copy of the court documentation or Form 56

    1. Change name/address per court documentation or Form 56.

    2. Attach to the last paper filed Form 1041 or send Form 56 directly to Files for retention purposes.
    Name/address change requests in correspondence without Form 56

    1. Contact the fiduciary for Form 56 or court documentation by telephone.

    2. Send letter if unable to reach by telephone.
    Fiduciary name change with Form 56

    1. Make fiduciary name/address change.

    2. Attach Form 56 to last paper filed Form 1041 or send Form 56 directly to Files for retention purposes.

  2. Attach court documentation to a Form 56 and send to Files for electronically filed returns, per IRM 3.5.61.16.1, Forms List.

21.7.1.4.10  (01-01-2007)
Technical Unit

  1. Technical Unit is a function set up in a campus that works cases identified as "priority" or "special." See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, for criteria. These cases are given special emphasis to ensure timely, accurate responses to troublesome or complex situations that could adversely affect taxpayer service and damage public relations if not properly handled.

  2. When criteria fits both Special Case and Taxpayer Advocate criteria (for criteria, see IRM 13.1, Taxpayer Advocate Case Procedures), Taxpayer Advocate criteria prevails and procedures in IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, are followed.

21.7.1.4.10.1  (10-01-2007)
Identification of Priority or Special Cases

  1. Categorize cases based more on complexity of action required than on tone of inquiry. The following cases are designated as "Priority" or "Special Cases" :

    1. Cases specifically designated as "Special" by National Headquarters, Area/Territory Office, or Field Directors

    2. Combat zone decedent cases

    3. All inquiries or adjustments relating to an exchange of information with a foreign country or U. S. possession. (If there is a question who is authorized to receive information, consult your local Disclosure Officer (Philadelphia Campus only).

    4. Cases that you or your immediate manager believe you cannot resolve through normal channels

    5. Follow-up inquiries that do not meet Taxpayer Advocate criteria such as cases involving both MF and non-MF or Pre-ADP returns; cases involving returns or other documents filed with more than one campus (campus servicing area in which taxpayer resides should work cases)

    6. Cases previously handled by Technical function, if it involves same tax type and same tax period

    7. Cases involving large, complex corporate accounts

    8. Form CT-1 (Cincinnati Campus only). See IRM 21.7.2.4.24, CT-1, CT-2 Railroad Tax Returns, for more information on Forms CT-1 and how to transfer the forms to Cincinnati.

    9. Potential CAWR tax/penalty assessments over $1 million

  2. Use OFP Code 710-0101X and category TECT for technical issues not related to an account with the Large Corporation Indicator (LCI). See IRM 21.7.1.4.11(3), Large Corp Unit, if LCI present

21.7.1.4.10.2  (01-01-2006)
Area Office Initiated Cases

  1. Special Cases identified in an area office are worked in that area office. If the area office cannot resolve the case due to insufficient or unavailable information, refer the case to Accounts Management by telephone. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, for the criteria the case must meet.

  2. Process area office initiated cases as follows:

    1. Complete Control Log/History Sheet. Record name and telephone number of caller.

    2. Record facts of case. If additional space is necessary, use Form 1725, Routing Slip, and staple it to the Control Log.

    3. Send Control Log to Technical Function Control Clerk daily.

    4. Acknowledge receipt of inquiry within seven calendar days of the IRS receipt of a telephonic special case. Campuses reply directly to the taxpayer, unless it is previously agreed that the reply should go to referral resolution point in an area office.

21.7.1.4.10.3  (01-01-2006)
Accounts Management Campus Initiated Cases

  1. Prepare a Control Log/History Sheet and process inquiries identified as meeting special case. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, criteria as follows:

    If Then
    Inquiry is received by mail Complete Control Log/History Sheet and attach inquiry.
    A telephone referral is received from an Accounts Management representative Prepare a control Log/History Sheet. Record all pertinent facts and taxpayer information on a memo or appropriate form.

  2. Transmit all special case referrals daily to the Technical Function Control Clerk.

21.7.1.4.10.4  (01-01-2005)
Unpostable Code 305, Reason Code 4 and 5

  1. Unpostable function refers cases it cannot resolve to Technical function (or locally designated function). Technical function (or locally designated function) takes the following action:

    1. Follow normal research procedures, including taxpayer contact, to resolve credit discrepancies.

    2. Processing time-frame is two weeks. If conditions warrant more time to resolve (e.g., waiting for taxpayer information to verify credits claimed), notify Unpostable function of delay.

    3. Document all case actions on history sheet.

    4. Move credits located under a different type tax, tax period, or TIN using standard credit transfer procedures.

    5. If a notice is sent to the taxpayer because of credits not being located, input a history item on IDRS to avoid duplication of research and unnecessary taxpayer contact (ex: U305BILLTP).

21.7.1.4.10.5  (01-01-2006)
Form 5704 - Special Case History Sheet

  1. Use Form 5704, Special Case History Sheet, to record the particular history of a special case.

  2. The history sheet helps other examiners ascertain what was done on the case.

  3. Attach the form to the inside of the case to facilitate case reviews by examiners as well as managers.

21.7.1.4.10.6  (01-01-2006)
Initial Case Review

  1. Check Adjustment Control Inventory List or IDRS to determine if follow-up inquiries are needed. For specific criteria, See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, then:

    If Then
    Open items are listed Send inquiry to appropriate unit to expedite action.
    Items are not in open status 1. Review to determine if action requested by taxpayer has taken place.
    2. Initiate an appropriate reply or forward case file to designated function to initiate reply.
    3. If no action has been taken and inquiry meets criteria, see IRM 21.7.1.4.10.1, Identification of Priority or Special Cases, route inquiry to Technical function for "Special Case" processing.
    Case is resolved by Technical function Technical function holds in "other" status until results of actions are verified, then closes case.
    Case does not meet special case criteria Refer to appropriate function for resolution.

  2. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases. Do not apply criteria to original inquiries or to multiple inquiries if each is on a different subject. For these situations, use normal pipeline procedures.

  3. Technical function has the option of rejecting any case that does not meet criteria to the point of origin. See IRM 21.7.1.4.10.1, Identification of Priority or Special Cases.

21.7.1.4.10.7  (01-01-2006)
ADP Technical Section

  1. Clerical support in Technical function should refer to IRM 2.3, IDRS Terminal Responses, IRM 2.8, AIMS Handbook, and IRM 2.4, IDRS Terminal Input, for terminal input sequence of IDRS research and IDRS control. Use Document 6209 for quick reference, but not as the authority:

    If Then
    Special case criteria are not met
    ( See IRM 21.7.1.4.10.1,Identification of Priority or Special Cases)     		1. Reassign case to appropriate function.
    2. Access Command Code (CC) ACTON to record reassignment and change status, if necessary.
    An inquiry is received directly from taxpayer or area office Establish controls on IDRS with assignment to an examiner in "A" (Assigned) status.
    Case is not accepted 1. Establish control with assignment to appropriate function.
    2. Forward all available information to assignee.
    A case is received with a notation that another case for same taxpayer is assigned to another functional area 1. Contact original case assignee to determine proper disposition of first case.
    2. When controlling a case, if IDRS already indicates case is already established, follow same procedures.

  2. Process special cases using the following guidelines:

    1. See IRM 5.19.2, Resolving Return Delinquencies, to process cases related to installment agreements.

    2. Record significant actions with a history item via CC ACTON using appropriate activity code.

    3. Process special case to completion.

    4. Use blocking series 79 for adjustments input on special cases.

      Note:

      Only use this blocking series when the original documents are in Technical function's possession. Continue to follow local procedures for adjustments where no refile DLN is created.

    5. If input of a MF transaction resolves case, do not change status of case on IDRS to "C" (closed). Route case file to control clerk to suspense for follow-up action.

    6. Respond to all special cases, within 14 days from the IRS received date. If unable to meet this date, prepare an interim reply within seven calendar days, explaining the reason for the delay, and the expected completion date. Maximum time for a final reply is 30 calendar days.

21.7.1.4.11  (10-03-2007)
Large Corp Unit

  1. Each year various sources identify large, complex corporate accounts or State Agencies with potential for creating complex processing problems. To identify these cases quickly, a Large Corporation "Large Corp" Indicator (LCI) appears on IDRS, MF transcripts and CC BMFOL.

  2. All controlled cases worked in Large Corp are identified by category codes:

    • "LGCP" (LMSB)

    • "LGSB" (SBSE), or

    • "LGGE" (TEGE)

  3. Use OFP Code 710-0140X when processing large, complex corporate and Coordinated Industry Cases (CIC) cases. See Document 5995A for 5th digit specific OFP code.

  4. All cases worked in these categories age in 45 days.

  5. All Large Corp cases are worked in Cincinnati and Ogden.

  6. The state mapping for Large Corp cases is:

    Large Corp State Mapping
    Cincinnati Ogden
    Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, West Virginia, Wisconsin Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Maine, Maryland, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, Wyoming

21.7.1.4.11.1  (10-01-2009)
Coordinated Industry Cases (CIC), Formerly CEP Accounts

  1. CIC examines cases that have more intricate and diversified business practices and transactions on many accounts. CIC cases are worked in Exam field offices.

21.7.1.4.11.2  (10-01-2009)
Working Large Corp Cases (LCI Designated)

  1. Large Corp technicians must take actions or make adjustments/recommendations for large corporate accounts with an LCI by:

    • Determining whether to send notices to taxpayer,

    • Addressing all current account issues, or

    • Coordinating with other functions regarding certain adjustments (CAWR, Excise, etc.) See IRM 4.19.4.2.1.1, Large Corporation/Large Dollar Screening - Tax Examiner Instructions and IRM 4.19.4.2.1.2, Large Corporation/Large Dollar Screening - local Large Corporation Coordinator Instructions.

  2. Large Corp technicians must communicate with the taxpayer, LMSB, SB/SE, TE/GE, and field personnel by:

    • Establishing and maintaining a professional relationship with the taxpayer

    • Coordinating with all relevant personnel in regard to assigned cases, and

    • Outreach activities

21.7.1.4.11.3  (10-01-2009)
Routing Large Corp Cases and Inquiries

  1. See IRM 21.7.1.4.11.4(2), Campus Contacts for Large Corp Cases. Route all cases with an LCI to the appropriate Large Corp Unit and/or site shown.

    Exception:

    Do not route CAWR, FUTA, Excise, Forms CT-1 (see IRM 21.7.2.4.24.4.1, Forms CT-1 Are Processed at Cincinnati Submission Processing Campus), Net Rate Interest Netting Claims (see IRM 21.5.3.4.15,Net Rate Interest Netting Claims, and IRM 20.2.14.6,Net Rate Interest Netting, for additional information on these claims), Form 1042, or Form 1139 cases. Contact the Large Corp Unit for coordination purposes.

    Caution:

    If the claim for refund exceeds $10,000, also call the appropriate Large Corp contact to ensure 45 day processing is met. See IRM 21.7.1.4.11.4(1), Campus Contacts for Large Corp Cases .

  2. CSRs must:

    1. Offer to the taxpayer, the contact name and telephone number. See IRM 21.7.1.4.11.4(1), Campus Contacts for Large Corp Cases, or

    2. Prepare a Form 4442 on all LCI inquiries and route them to the appropriate Large Corp campus, if the taxpayer chooses not to call the contact.

      Note:

      Reassign CIS cases following local procedures.

  3. If the case is routed to the incorrect Large Corp Unit, the incorrect Large Corp Unit receiving the case must coordinate with the correct site for resolution.

21.7.1.4.11.4  (02-23-2009)
Campus Contacts for Large Corp Cases

  1. The following campus contacts assist field personnel and any taxpayer who has a Large Corporation Indicator (LCI) to help resolve account related problems. Research the account before giving out the telephone number. Only give the campus contact telephone number to a taxpayer whose account actually has the LCI set on it.

    Note:

    A BOD code of LM does not necessarily indicate that they are in the "Large Corporation Program" .

    Campus Contact Name Telephone number Best Time to Call
    Cincinnati Large Corp Team 401
    Large Corp Team 402     		859-669-5769
    859-669-5771     		6:00 AM - 2:30 PM
    6:30 AM - 3:00 PM
    EST
    Ogden Large Corp Team 1
    Large Corp Team 2     		801-620-7179
    801-620-4365     		7:00 AM - 3:30 PM
    7:30 AM - 4:00 PM
    MST

  2. Large Corp Unit addresses are:

    Cincinnati
    PO Box 12267
    Stop 537G
    Covington, KY. 41012

    Ogden Express Mail
    1973 N. Rulon White Blvd.
    Mail Stop 6061 (Attn: Large Corp MS 6732)
    Ogden, UT. 84404

    Ogden Regular Mail
    Mail Stop 6732
    Ogden, UT. 84201

  3. To find the Large Corporation indicator on IDRS screens, follow the chart below. Once the organization has been assigned to one of the Large Corp Units, the indicator (which is one of the following numbers) shows which campus to contact:

    • Cincinnati (17)

    • Ogden (29)

    ON IDRS SCREEN: LARGE CORPORATION INDICATOR:
    ENMOD LARGE-CORP-CD> directly under ENMOD
    SUMRY LARGE CORPORATION> ON 3rd line of SUMRY
    TXMODA LRG-CORP> on 2nd line of TXMODA
    BMFOLI LGE CORP: on 4th line of BMFOLI

21.7.1.4.11.5  (11-20-2008)
Requesting Large Corp Participation

  1. The Large Corp Indicator "LCI" requests are generally made by the taxpayer or field personnel through the Large Corp Units or Industry personnel.

  2. Determine the taxpayer's Business Operating Division (BOD).

    If ... Then ...
    LMSB or affiliate Complete "LCI" Request Form.
    SB/SE Refer to your Large Corp manager to contact the appropriate (Collection or Examination) SB/SE Area Director.
    TE/GE entity Refer to your Large Corp manager to contact the TE/GE liaison.

  3. All cases must have multiple/complex issues.

  4. The individual or designee receiving the "LCI" request must complete the following sections of the "LCI" request form:

    • Taxpayer Information

    • Taxpayer contact information

    • Requester Information

    • Reason/s for LCI Request

  5. Identify the LMSB Industry for LMSB taxpayer.

    If
    the case is ...    		 Then ...
    On AIMS
    The third number on the Primary Business Code is the Industry code (30X with "X" being the Industry Code).
    Not on AIMS Check TXMOD (The second line down on the right side will show "BOD-CD>LM CLIENT-CD>X" with "X" being the Industry code.)

  6. Forward the "LCI" request form electronically using secure messaging to your manager.

  7. Team managers and Large Corp Managers or designees must forward the completed LMSB "LCI" request form to Industry PSP analysts (listed under "L" Code Request Instructions for a list of Industry PSP analysts) using secure messaging.

  8. The PSP Analyst will complete the "Approval or Reject information" for LMSB requests. The "L" Code request form will be e–mailed to the responsible Large Corp Technical Unit (LCTU) based on the ENMOD address of the taxpayer and LMSB requester, if applicable.

    • If the request has been approved, the LCTU will "L" Code the taxpayer.

    • If the request has been rejected, the Industry PSP Analyst will contact the taxpayer and provide the reason why the request was rejected.

21.7.1.4.11.6  (01-01-2005)
Removing Large Corp Participants

  1. Large Corp Units must review the quarterly listings provided by LMSB to eliminate taxpayers currently enrolled in their programs with the following characteristics:

    • No activity for more than 16 months

    • Not currently under examination

    • No balance due or outstanding TDIs, and

    • No recent TE activity, e.g. transcripts

  2. Send a letter to any taxpayer that meets these criteria informing him/her of the intention to eliminate him/her from the program.

  3. If the taxpayer does not reply to the letter within 45 days, consider the taxpayer agreeing that Large Corp service is no longer required.

21.7.1.4.11.7  (01-01-2005)
Inputting/Removing the Large Corp and CEP Indicator

  1. Designated employees in the Large Corp Unit can add or delete LCI or CEP Indicators using IDRS CC BNCHG as follows:

    If Then
    Adding LCI Input campus jurisdiction code in "Large Corp Code" field.
    Removing LCI Input "99" in "Large Corp Code" field.
    Adding CEP indicator Input "01" in CEP field.
    Removing CEP indicator Input "99" in CEP field.

21.7.1.4.11.8  (01-01-2005)
Reviewing Large Corporation Notices

  1. Review large corporate notices to determine if they are correct.

  2. Research all accounts using available tools to see if there are:

    1. Misapplied payments (including other TINs on file)

    2. Unresolved pending transactions (e.g., payments, subsequent assessments, tax, penalty, interest adjustments, etc.) on IDRS

    3. Unresolved balance due accounts, or

    4. Erroneous refunds being issued

  3. Take necessary action to resolve any identified issue(s).

  4. If necessary, contact taxpayer by telephone to determine validity of any notice prior to issuance.

  5. Void any notice or release it for issuance per IRM 3.14.2, BMF Notice Review.

21.7.1.4.11.9  (01-01-2005)
Federal and State Agencies Accounts Receivables (Form 941)

  1. Currently, these accounts are worked by TE/GE.

    Exception:

    All States requesting account related assistance are worked by the Large Corp Unit in Ogden. Contact Ogden Large Corp Unit if you have any questions on these accounts.

21.7.1.4.11.10  (01-01-2005)
Failed Savings and Loans

  1. Employees in Accounts Management or Examination Branch can make assessments on accounts identified as Failed Savings and Loan Institutions. These accounts are coded with the Large Corp Indicator "LCI " . The following actions are taken by Output Review:

    1. Enter EINs of these accounts on local control file.

    2. Pull all adjustment notices generated as a result of assessment.

    3. Void notices and input a history item "VOIDEDEXAM " .

  2. Refer all notices identified under NRPS key 06 (Large Complex Corporations) to Exam for proper notice disposition. If these notices are received in other functions that work large complex corporation and CIC accounts, forward to Exam for proper disposition.

  3. See IRM 21.7.4.4.4.13,Insolvent Financial Institutions/Failed Savings and Loans, for information on these accounts.

21.7.1.4.11.11  (01-01-2005)
D- Freeze/Large Corporation Offset

  1. TC 470 cc 97, puts a freeze on all offset-in operations within an account or on a specific module on accounts containing the Large Corporation Literal.

  2. TC 470 cc 97 creates a "D-" freeze and a 52-cycle systemic hold.

    1. It involves accounts containing complex processing issues which require multiple adjustment actions outside the scope of normal processing.

    2. TC 470 cc 97 does not freeze designated overpayments from refunding.

    Caution:

    Do not allow overpayments to refund when the application of such overpayments are part of the case resolution.

21.7.1.4.11.11.1  (10-01-2009)
Use and Posting of TC 470, cc 97 by Examiners Working Large Corporate Accounts

  1. Use TC 470 cc 97 when debit balances are known to be erroneous or when the legitimate collection of taxes due the Government will not be placed in jeopardy.

  2. TC 470 cc 97 posts under the following conditions. Otherwise, the input document is voided to the originator.

    • Large Corporate Account Indicator on the account

    • Debit, credit, or zero balance module

    • No bankruptcy or litigation freezes on the account

    Note:

    The module of input cannot contain any unreversed TC 470 non-closing code 97 (nor can any TC 470 non-closing code 97 be input on a module containing an unreversed TC 470 cc 97).

  3. Input of TC 472 cc 97, or expiration of the 52 cycle systemic hold, releases the freeze.

  4. Use a second TC 470 cc 97, if warranted, to properly resolve a taxpayer's account.

  5. Use of TC 470 cc 97 generates Account Maintenance type transcripts as a validation check against any unreversed TC 470 cc 97. These transcripts will generate the 28th cycle after input of the TC 470 cc 97.


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