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Part 3. Submission Processing

Chapter 0. General

Section 273. Administrative Reference Guide (Cont. 2)

3.0.273  Administrative Reference Guide (Cont. 2)

3.0.273.19 
Taxpayer Correspondence

3.0.273.19.3  (01-01-2008)
Guidelines for TP Correspondence

  1. The key to identifying TP correspondence is to ask: "Is The TP Waiting For A Reply Or An Action To Be Taken By The Service?"

3.0.273.19.3.1  (01-01-2008)
General Guidelines for Counting TP Correspondence

  1. Count the following as TP correspondence:

    • All claims.

    • Correspondence attached to a return addressing issues not directly related to the return.

    • CP Notices—incoming TP responses to CP Notices including the following: annotated notices that provide additional information to dispute or support the notice; or, notices where the TP has provided the information requested by the notice.

    • Internal Transcripts—incoming TP responses providing information needed to resolve an issue.

    • Incoming FAX issues that meet correspondence criteria.

    • Telephone calls—not resolved or answered on initial contact and follow-up is required.

    Example:

    if information is taken and subsequent contact is made with the caller, the written referral of the telephone call will be counted and included in the correspondence counts.

    • All incoming responses to submission processing site generated letters.

    • Any applications or forms where the TP is waiting for approval, change, determination, recognition, information or action from the Service.

    Note:

    Refer to Exhibit 3.0.273-1 for the General List of Correspondence

    Caution:

    This list may not be all inclusive.

3.0.273.19.3.2  (01-01-2008)
Clarification List, Excluded Types of Work

  1. Shown in the paragraphs below are "Types of Work" excluded from the definition of TP Correspondence.

  2. Functions:

    • Criminal Investigation Branch.

      Note:

      Work meeting the Action 61 guidelines does become correspondence if re-routed from CIB.

    • Facilities—correspondence not directly dealing with a TP's account.

    • Training—correspondence not directly dealing with a TP's account.

  3. Forms:

    • Delinquent Return—any original return or amended return received in response to a Return Delinquency Notice.

    • Substitute for Return—any original return or amended return received in response to a Substitute for Return Notice.

    • Forms 1040X-Amended U.S. Individual Income Tax Return, 1120X-Amended U.S. Corporation Income Tax Return, 941C-Supporting Statement To Correct Information.

    • Forms 1045–Application for Tentative Refund & 1139–Corporation Application for Tentative Refund.

    • Forms 4768–Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, 4868–Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, 2758–Application for Extension of Time to File Certain Excise, Income, Information, and Other Returns, 8800–Application for Additional Extension of Time to File Return for a U.S. Partnership or for Certain Trusts, etc., Extensions to File.

    • Tele-Tin.

    • CAF/POA.

    • Address Changes.

    • Form 3531–Request for Missing Information or Papers to Complete Return.

    • Internal requests between IRS functions if there is no TP correspondence involved (i.e., Forms 3870–Request for Adjustment, 3465–Adjustment Request, etc.).

    • Form 8379–Injured Spouse Allocation.

    • Form 8849–Claim for Refund of Excise Taxes.

  4. Other Exclusions:

    • All correspondence received in response to IRS solicitations for information necessary to secure or complete the processing of a tax return. (Suspense files in Document Perfection, Rejects, Unpostable, Output Review, etc.)

    • Child Support Enforcement (i.e., dealing with an agency, not a taxpayer).

    • Responses to IRS Third Party solicitations (i.e., ACS requests for Employment Verification, etc.).

    • FED/STATE Program.

    • Loose Schedules.

    • Telephone Inquiries when responses are provided at the time of the inquiry.

    • Telephone calls received on Code-A-Phones or for personnel temporarily away from their work station providing a response is provided telephonically to the TP within hours rather than days, but certainly no longer than a couple of days (if the weekend is involved).

    • Incoming replies from a third party (i.e., State Certifications, FTD Verification, etc.).

    • Mag Tapes.

    • Internal CP Notices and Transcripts.

      Note:

      Incoming replies to solicited information needed to resolve these are considered correspondence.

    • Taxpayer Advocate Service cases—when the TP does not expect an answer from the Submission Processing/Customer Service Site.

    • TP's response to a notice, which does not require a response (such as a CP 09, advising IRS that he/she does not qualify for EIC) and the taxpayer is not expecting a response.

    Note:

    If the TP's response addresses other issues, treat the case as correspondence.

3.0.273.19.4  (01-01-2008)
Quality Response

  1. Respond to all TP correspondence.

  2. A quality response must:

    1. Be initiated within 30 days of the initial IRS received date;

    2. Indicate if it is in reply to the TP's correspondence, inquiry and/or payment etc.;

    3. Reference the date of the TP's correspondence and/or payment (i.e. "Thank you for your correspondence dated and your payment of $" ); and,

    4. Include the tax form, tax period and action taken.

  3. Exceptions:

    • Correspondence attached to an original tax return and the TP asks a question or addresses an issue concerning the processing of the tax return.

    • No additional letter is needed if: a notice generates as a result of an action taken to the taxpayers account; and, the notice is mailed to the taxpayer within 30 days of the IRS received date.

    • General comments about the tax system or comments submitted with payments, such as "Here is my payment" do not require a response or action.

3.0.273.19.4.1  (01-01-2008)
Correspondence Date

  1. When the letter is not dated, use the postmark date. If the postmark date is unknown, count three days prior to the IRS received date.

3.0.273.19.5  (01-01-2008)
Interim Letter

  1. The objective of Action 61 is to resolve TP cases within 30 days. If cases cannot be closed within this time frame, it is necessary to inform TP of the reason for the delay.

  2. Interim letters must:

    1. Properly identify the type of correspondence received (i.e., form or inquiry);

    2. Address payments received;

    3. Include an accurate reason for the delay;

    4. Include a time frame for the taxpayer to expect a final response;

    5. Include a specific person's name and phone number as a contact point; and,

    6. Address any balance due, installment agreements (if applicable) and delayed issuance of notices.

    Note:

    Send additional interim letters as necessary. If Spanish language correspondence is received, you must reply using the Spanish version of the appropriate C letter, if one is available.

  3. Telephonic interim response may be used instead of a written interim letter. An interim telephone contact will include the same elements as the written interim letter.

  4. Written documentation concerning the telephonic interim response must remain with the case and contain the following:

    1. TP's telephone number;

    2. Date of telephone call;

    3. Name of person contacted;

    4. Reason for delay;

    5. When a final response can be expected;

    6. Contact name, telephone number and time to call; and,

    7. A notation of any special issues discussed, such as installment agreements, payments, delayed issuance of notices, etc.

3.0.273.19.6  (01-01-2008)
Corresponding With TP or Authorized Representative

  1. Use pattern letters or PINEX notices to correspond with TP whenever possible. If a CNOTE or Quick Note is used, be sure that it clearly communicates the message in simple language.

  2. If multiple issues are involved, select the letter that best addresses the main issue. Use open paragraphs to address any additional IRS or taxpayer issues.

    Note:

    When an open paragraph is used, a manager or lead should approve the paragraph for content, spelling and grammar.

  3. Check the Centralized Authorization File (CAF) or the Reporting Agent's File (RAF) (if Form 940, 941, or 945) to ensure the information will be mailed to the TP's representative, if there is one on record, before initiating any manually prepared correspondence. Insure the TP is identified on all correspondence to the TP's representative. Any enclosures mailed to the TP must also be mailed to the authorized representative. See IRM 21.3.9, Processing Reporting Agents File (RAF) Authorizations, BMF and NMF DP Tax Adjustments, for RAF background information.

3.0.273.19.7  (01-01-2008)
Requesting Information

  1. When requesting information from a TP include the following in all correspondence:

    1. The specific length of time in which to respond;

    2. The action IRS will take if a timely response is not received;

    3. Request TP to include his or her telephone number and the most convenient time for us to call if we need more information;

    4. Include a "bar coded" envelope;

    5. Inform the TP of your mail stop number and ask the TP to reference the mail stop number if unable to use the provided envelope; and,

    6. Always include your employee ID number.

3.0.273.19.8  (01-01-2008)
Correspondence Timeliness

  1. Timeliness is determined by the Quality Measurement System for the vast majority of correspondence (written or telephone response to the taxpayer).

  2. For those correspondence inventories for which responses are not required, such as Rejects/ERS suspense replies, address change requests, etc. (not all inclusive):

    1. Timeliness will still be reported by the 14 or 30 day response requirements as opposed to traditional aging inventories;

    2. The timeliness determination for this type of correspondence will also be based on sampling as opposed to actual/complete manual tracking, unless an automated system is in place to track.

    Note:

    Consider having the timeliness sampled by quality review, as part of either individual, process, program or special reviews; by responsible line managers, or by Planning & Analysis (P&A) analysts.

3.0.273.19.9  (01-01-2008)
Quality Measurement System

  1. The Program Analysis System (PAS) Team is now "The Improvement System" responsible for the "old" PAS review and EQSP, Embedded Quality Submission Processing. See IRM 3.0.273.43 for additional information on Quality Systems.

  2. The Quality Analyst still perform the reviews the PAS analyst did for the balance measures review (IRM 3.0.275). In addition the Improvement Team has two Improvement Specialists who perform EQSP duties. EQSP uses a single point entry for capturing data on four types of reviews:

    1. Individual Performance Review

    2. Individual Feedback Review

    3. Product Feedback Review

    4. On-The-Job Training (OJT) Review

    The system provides the capability to:

    • Review and edit quality data,

    • Create and review reports for employees, reviewers, and all levels of management and analysts,

    • Provide different levels of access based on a user's profile.

3.0.273.20  (01-01-2008)
Third Party Authorizations

  1. Accountants, attorneys, enrolled agents, or other representatives from whom a taxpayer has requested assistance on tax problems submit inquiries to IRS. The third party expects a reply to the inquiries so the problem can be explained to the taxpayer.

  2. To authorize this third party to receive information, the taxpayer may submit a Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization (TIA) or a separate written authorization. The forms are made available as a convenience for the taxpayer. Their use is not mandatory.

  3. Use of a power of attorney is limited to recognized representatives. For information on powers of attorney, see IRS Publication 947, Practice Before the IRS and Powers of Attorney, and Treasury Department Circular No. 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers Before the IRS.

  4. Use of a Tax Information Authorization is limited to disclosure of tax information. For information on disclosure authorizations, see IRM 11.3.2, Disclosure to Persons with a Material Interest, and IRM 11.3.3, Disclosure to Designees and Practitioners. IRM 21.3.1, Taxpayer Contacts Resulting from Notice Issuance, contains guidelines for preventing unauthorized disclosure when assisting taxpayers and third parties.

3.0.273.20.1  (01-01-2008)
Completed Forms

  1. Below are the essentials of an authorization, whether POA or TIA.

    1. Clear Intent

    2. Clear identification of the taxpayer, e.g., name, taxpayer identification number (TIN), and mailing address;

    3. Clear identification of the third party, e.g., name and address of the designated representative (POA) or appointee (TIA);

    4. Specific tax matter(s), e.g., type of tax (individual, corporate, etc. or form number), and tax year(s) or period(s);

    5. Taxpayer's signature and date of signature; and

    6. For a POA, a declaration of good standing before the IRS must be signed and dated by the representative.

3.0.273.20.2  (01-01-2008)
POA/TIA Attached to a Return

  1. If the POA or TIA is attached to a return, make a copy and route the original authorization to the CAF area, immediately upon identification, for further processing.

    Note:

    A refund may not be sent to the appointee named on a TIA.

3.0.273.20.3  (01-01-2008)
POA/TIA Loose or In the Form of Correspondence

  1. If the POA or TIA is received and is not attached to any return or document, route it to the CAF area. If the authorization is in the form of correspondence, review the correspondence to determine if other requests are involved. If other requests are involved, photocopy the correspondence and send it to the CAF area for processing. If other requests are not involved, send the correspondence to the CAF area for processing.

3.0.273.20.4  (01-01-2008)
POA/TIA Filed for Specific Issues

  1. POAs or TIAs filed for specific issues are not to be detached from the related document and sent to the CAF area, unless the document authorizes recognition for a return in addition to the specific issue. In this case, a copy of the POA or TIA should be sent to the CAF area to input the return portion on the CAF system. (See IRM 21.9, Processing Powers of Attorney, for examples of specific issues).

3.0.273.20.5  (01-01-2008)
General or Durable Powers of Attorney

  1. "General Powers of Attorney" or "Durable Powers of Attorney" do not contain sufficient information to process on CAF and should be retained in the case file or left attached to the related return. If, however, a general or durable power of attorney is submitted attached to a completed Form 2848 (a transmittal power of attorney), send both forms to the CAF area for processing.

3.0.273.20.6  (01-01-2008)
TC 960

  1. If there is no information on the CAF but there is a TC 960 on the module, contact the appropriate submission processing/customer service sites to verify the POA.

3.0.273.20.7  (01-01-2008)
Unauthorized Third Party

  1. An unauthorized third party (without a valid POA or TIA) may request an adjustment or account correction for the taxpayer. This may be done orally or in writing. While information may be accepted, taxpayer account information may not be provided to an unauthorized third party.

  2. An unauthorized third party cannot under any circumstances bind the taxpayer, such as requesting an adjustment that requires the taxpayer's signature. See IRM 21.5.1, General Adjustments, for signature requirements and claim processing.

    Note:

    The authority provided by Form 8821 is limited to disclosure of tax information; it does not authorize the appointee to respond to the Service on behalf of the taxpayer if the response constitutes practice before the Service; e.g., the appointee may not advocate a position with respect to the Federal tax laws or execute waivers, consents, or closing agreements.

  3. Contact must be with the taxpayer or a representative with a valid POA or TIA for additional information. Do not contact an unauthorized third party if additional information is needed.

  4. When dealing with a third party, check the CAF before corresponding. If he or she is not on the CAF, respond directly to the taxpayer and send the appropriate "C" letter (for example, Letter 135C) to the third party.

  5. If the third party provides information only and requests or implies a response is expected send the 135C letter.

3.0.273.20.7.1  (01-01-2008)
Modification to the POA/TIA

  1. An "M" in the POWERS field indicates a modification to the POA/TIA and can also indicate an additional authorized third party. The POA/TIA document must be requested in this situation to determine if the third party is authorized to receive the information.

3.0.273.20.7.2  (01-01-2008)
Request is of a Suspicious Nature

  1. If the validity of the unauthorized third party request is of a dubious or suspicious nature, the taxpayer should be contacted to confirm the request.

3.0.273.21  (01-01-2008)
Access to IDRS

  1. The Integrated Data Retrieval System (IDRS) enables employees at the campuses and the area offices to have instantaneous access to certain taxpayer accounts.

3.0.273.21.1  (01-01-2008)
Unauthorized Access

  1. When using IDRS, only access those tax modules required to accomplish your official duties. All IDRS accesses are recorded for immediate review and to determine the accuracy of an adjustment.

  2. Any unauthorized access or browsing of tax modules by employees to satisfy personal curiosity or for any other reason not needed to carry out their tax administrative duties (including accessing the account of a taxpayer with whom they have a personal or outside business relationship) is prohibited, and may subject an employee to disciplinary action and/or criminal prosecution. See IRM 3.0.273.10.1, Penalties and Disciplinary Action.

  3. If an employee unintentionally accesses a taxpayer's data, he or she should inform their supervisor and complete a Form 11377, Taxpayer Data Access Form.

3.0.273.22  (01-01-2008)
Corporate Files On-Line (CFOL), On-Line Entity (OLE)

  1. The term Corporate refers to information which is currently maintained at the Enterprise Computing Center-Martinsburg (ECC-MTB). CFOL provides on-line access to current master file information for users through the telecommunications network. Using CFOL command codes will save time, reduce unpostable transactions and will result in a better quality product. The use of CFOL command codes is the alternative to MFTRA/ACTRA/ESTAB requests.

  2. OLE provides on-line access to tax account entity information for validation and verification purposes.

  3. The National Account Profile (NAP) is the centralized master file data base which allows access to selected entity information (including Social Security Administration and cross reference data) for all accounts that reside on the NAP. The NAP is accessible through command code INOLE. The NAP is physically located at the Martinsburg and Detroit Computer Centers and is updated as part of the weekly master file posting cycle.

    Note:

    Nationwide access to IDRS provides access to any IDRS database in the nation when certain inquiry command codes are input and fail to find the requested record on the local IDRS database.

3.0.273.22.1  (01-01-2008)
CFOL Command Code Access/Input Reference Documents

  1. IDRS is a system which enables employees in the Customer Service/Submission Processing Sites and Area Offices to access certain taxpayer accounts using the CFOL command codes.

    Note:

    Refer to the following books for additional information on the use of CFOL command codes, definers and input formats.

    • IRM 2.3, IDRS Terminal Response;

    • LEM 2.3, for Command Codes RTVUE & BRTVU;

    • IRM 2.4, IDRS Terminal Input;

    • Document 6209, ADP and IDRS information; and,

    • Training Coursebook 2545–IDRS.

3.0.273.22.2  (01-01-2008)
Inquiry National On-Line Entity (INOLE)

  1. CC INOLE provides access to the NAP. Information available for users includes name line, name control, SSA name control, address, employment codes and filing requirements.

  2. Research INOLE for cross reference TINs for spouses or former spouses, sole proprietor, verify existing parent/subsidiary corporations, check cross-reference information on parent/subsidiary corporations and verify responsible officers in 100% penalty cases.

3.0.273.23  (01-01-2008)
Individual/Business Master File On-Line and Return View (IMFOL/BMFOL—RTVUE/BRTVU)

  1. Individual/Business Master File On-Line (IMFOL/BMFOL) and Return View (RTVUE/BRTVU) provide on-line research of master file account and return data. These command codes should be used to research entity and tax data that may not be available on IDRS.

    Note:

    Master file does not carry all information that is available on the IDRS screen displays. It is imperative that IDRS research be initiated before accessing master file information with these command codes.

3.0.273.23.1  (01-01-2008)
Command Code IMFOL

  1. CC IMFOL provides access to nationwide transactions posted to the Individual Master File (IMF). IMFOL allows expanded research capability when routine IDRS research, such as SUMRY or TXMOD, results in "no data" or a default to "REINF." Command Code IMFOL will reduce the need to order a MFTRA transcript.

3.0.273.23.2  (01-01-2008)
Command Code BMFOL

  1. CC BMFOL provides on-line research of nationwide entity and tax data information for Forms 94X, 1065, 1120, 720, 1041, 990– Series, 1042, 2290, 4720 and 5227 posted to the Business Master File (BMF). It contains basic identifying information, amounts, dates, codes, indicators and freezes. Transactions posting, status history, audit history and vestigial data are also available.

3.0.273.23.3  (01-01-2008)
Return Transaction File (RTVUE/RTFTP and BRTVU)

  1. CC RTVUE provides access to the following:

    • Line items transcribed from IMF returns (Forms 1040, 1040A, 1040EZ, 1040NA, 1040SS and 1040PR);

    • Edited or verified fields; and,

    • The accompanying schedules and forms filed in the current processing year including late filed returns, and the two prior years.

    Note:

    The information on RTVUE is transcribed or generated on the original returns as they are processed at the submission processing sites. It does not change, nor will it reflect any subsequent adjustments or amended/duplicate returns.

  2. CC RTFTP provides a sanitized taxpayer version of RTVUE that includes no IRS edited or generated data.

  3. CC BRTVU provides access to the following:

    • Line items transcribed from BMF returns;

    • Edited or verified fields; and,

    • The accompanying schedules and forms.

  4. The information on BRTVU is transcribed or generated on the original returns as they are processed at the submission processing sites. BRTVU also provides transcribed or generated information from duplicate and amended return processing.

    Note:

    See IRM 3.0.273.22.1 for a list of reference documents on access/input of CFOL command codes.

3.0.273.23.3.1  (01-01-2008)
Data Available

  1. The current year plus the three prior processing years are available. The processing year includes all returns processed during the year. Delinquent returns will be displayed in the year processed using current year transcription lines.

  2. The Summary Screen displays a summary of forms/schedules (including dollar totals) filed for a specific TIN, MFT and tax period, except for returns that can be displayed on one screen. It also displays filing status, dependents, exemptions, income, tax, deductions and payments.

3.0.273.24  (01-01-2008)
Employee Plan Master File On-Line (EMFOL) and Return View (ERTVU)

  1. Command Codes EMFOL and ERTVU should be used whenever possible in place of CC MFTRA/ACTRA (use CC EMFOL) and CC ESTAB (use CC ERTVU).

3.0.273.24.1  (01-01-2008)
Command Code EMFOL

  1. CC EMFOL provides access to basic identifying information, amounts, counts, dates, codes and indicators. Transaction posting and status history are also available. A plan and return module index can be requested for any specified account (EIN).

3.0.273.24.2  (01-01-2008)
Command Code ERTVU

  1. CC ERTVU provides on-line access to the Employee Plan Return Transaction Files (EPRTF). Returns and schedules processed during the current year and two previous years can be accessed. The EPRTF contains data transcribed from employee benefit plan annual reports (Forms 5500, 5500C/R, and 5500EZ). The return transaction file contains line items transcribed during return processing and other fields such as math calculations.

    Note:

    See IRM 3.0.273.22.1 for a list of reference documents on access/input of CFOL command codes.

3.0.273.25  (01-01-2008)
Additional CFOL Command Codes

  1. The following additional CFOL command codes can be used to access taxpayer information.

3.0.273.25.1  (01-01-2008)
Centralized Authorization File On-Line (CAFOL)

  1. CC CAFOL provides access to selected information about authorizations posted to Master File and Maintained at ECC-MTB. Use CAFOL to determine whether an individual is authorized to receive information or to act on behalf of a taxpayer.

3.0.273.25.2  (01-01-2008)
Debtor Master File On-Line (DMFOL)

  1. CC DMFOL provides a list of individual obligations that are owed to agencies other than the IRS. Obligations are listed under the Debtor/Obligor SSN only.

3.0.273.25.3  (01-01-2008)
Payer Master File On-Line (PMFOL)

  1. CC PMFOL provides information on the annual summary and transmittal of information returns (Form 1096) filed and the civil penalties associated with each document type. The payer transmittal information includes payments, withholding and number of documents filed by payer, by document type. Backup withholding information is also available for accounts that have been linked with the Business Master File.

3.0.273.25.4  (01-01-2008)
Information Returns Processing Transcript Request (IRPTR)

  1. CC IRPTR provides on-line information or Information Returns Processing (IRP) Transcripts from the Information Returns Master File (IRMF) for a particular payee or payer TIN and tax year(s). The request may be made for payee or payer information.

  2. IRPTR with definer R or E will generate a "paper transcript" that is processed and delivered in approximately six weeks.

  3. IRPTR with definer L will display summary information. IRPTR with definer O will display detailed payee or payor information.

3.0.273.25.5  (01-01-2008)
TDI Supplement On-Line (SUPOL)

  1. CC SUPOL provides access to a national database of potential TDI cases. The database contains the Information Return (IRP) document(s) associated with the potential TDI. The initial year on the database starts with TY90 information. Additional years of information are added in May of each year. A total of 6 years will be available when the entire database is built.

    Note:

    See IRM 3.0.273.22.1 for a list of reference documents on access/input of CFOL command codes.

3.0.273.26  (01-01-2008)
Name Search Facility (NSF), Command Code NAMES

  1. CC NAMES provides access to NSF for entity research, account location and cross reference information for individual taxpayers. CC NAMEE provides similar information for businesses. The NSF, along with the National Account Index and the Cross Reference Index, provides a national centralized name search capability which will replace the Key Index File located at each Submission Processing Site. NAMES/NAMEE will eventually replace Command Codes SSNAD and EINAD. See IRM 36.66.0, Research Operations, for complete information on the NSF.

    Note:

    See IRM 3.0.273.22.1 for a list of reference documents on access/input of NAMES/NAMEE.

3.0.273.27  (01-01-2008)
Desk Procedures

  1. Desk procedures cannot deviate from IRM procedures.

  2. If desk procedures are developed they are only to be used for the following purposes:

    • To supplement existing Headquarters Office procedures; and,

    • To provide local routing information.

  3. All desk procedures must reflect the approval of designated management officials.

  4. All existing desk procedures should be reviewed at the branch chief level at least twice a year or with each IRM revision, whichever is more frequent. Such reviews are done to assure conformance with Headquarters Office procedures. Changes or approvals should be identified at this time.

3.0.273.28  (01-01-2008)
Submission Processing Sites (SPS) Operations

  1. The submission processing operations, known as the "pipeline," is the movement of paper tax documents, tax return data filed on magnetic tape and electronically filed tax return data through the various functions in the SPS.

  2. Paper documents are:

    • Grouped into blocks;

    • Numbered; and,

    • Coded and edited.

  3. The coded and edited data is:

    • Transcribed or scanned; and,

    • Math verified.

  4. Electronic filing of tax returns eliminates these first steps of pipeline processing.

3.0.273.28.1  (01-01-2008)
Mailroom

  1. The Mailroom handles the receiving and shipping of mail for the SPS. Incoming mail is counted, opened and sorted by the Composite Mail Processing System, COMPS.

  2. When taxpayers use pre-addressed bar coded envelopes furnished by IRS, COMPS can:

    • Sort incoming returns by type, decreasing the amount of manual sorting required; and,

    • Read the magnetic ink on checks, so envelopes containing remittances are sorted separately.

  3. Large pieces of mail are opened and handled manually.

3.0.273.28.2  (01-01-2008)
Extracting and Sorting

  1. The opened mail is routed for extracting and sorting. The mail is extracted from envelopes and returns are sorted into approximately 50 categories by type.

    If Then
    A return has money or a "remittance" attached It is input through the Remittance Processing System (RPS).
    A return does not have money attached (a "non-remittance return" ) It is batched and numbered.

3.0.273.28.3  (01-01-2008)
Remittance Processing System (RPS)

  1. In RPS, taxpayer payment information is recorded and the money received is prepared for bank deposit. A Document Locator Number (DLN) is assigned to a block containing from 1 to 100 documents. Each document in the block is stamped with the DLN as a means of identification and control. A Block Selection Control Record, called a Block Header (BH) is prepared. The BH contains:

    • A block identification number;

    • DLN;

    • Batch sequence number; and,

    • Total volume of returns.

  2. BH data and information from each document is input into the system. The BH data is used to "establish" the block on the Service Center (Submission Processing) Control File (SCCF). The data is balanced, and the checks are removed and sent to the bank within 24 hour of receipt.

    Note:

    When a remittance document cannot be processed through RPS, it is manually processed.

  3. After balancing is complete, the documents are batched and numbered.

3.0.273.28.4  (01-01-2008)
Batching and Numbering

  1. Documents are grouped into "batches" by type of return and control documents are prepared. Documents that meet the criteria for scanning are batched and routed for scanner preparation as follows:

    • All Forms W–2 and staples are removed; and,

    • The returns are reviewed for Criminal Investigation criteria.

  2. Documents that do not require numbering at this step in the pipeline are handled as follows:

    1. Batched for coding and editing;

    2. Perfected for input into the Distributed Input System (DIS);

    3. Put into blocks of 1 to 100 documents;

    4. A DLN is assigned to the block;

    5. Control documents are prepared;

    6. Documents are numbered; and,

    7. Documents are routed for input to DIS.

  3. Certain types of non-remittance returns must be blocked and numbered at this step in the pipeline as follows:

    1. Returns are put into blocks of 1 to 100 documents;

    2. Assigned a DLN;

    3. Documents are numbered;

    4. Control documents are prepared;

    5. Routed for code and edit of the tax data; and,

    6. Routed for input to DIS.

3.0.273.28.5  (01-01-2008)
Code and Edit

  1. Each document is checked to make sure information needed for processing is present and legible. The documents are coded and edited. The codes tell the computer how to compute tax liabilities and instructs the computer to take special program action.

  2. Certain returns that are still unnumbered at this stage of processing can be returned to taxpayers if they are incomplete and cannot be processed.

  3. Numbered documents cannot be removed from the block. If documents are incomplete and cannot continue through processing, they are coded for correspondence with the taxpayer.

3.0.273.28.6  (01-01-2008)
Service Center Recognition/Image Processing System (SCRIPS)

  1. Scannable documents are processed through SCRIPS where they are:

    1. Blocked;

    2. Assigned a DLN;

    3. Numbered;

    4. Imaged systemically; and,

    5. The data is checked for completeness and accuracy.

  2. Documents that do not pass the checks are rejected for correction. Data from documents that passed the checks is placed on magnetic tape and merged with other tax return data for transmission to ECC-MTB and posting to the MF.

3.0.273.28.7  (01-01-2008)
Integrated Submission and Remittance Processing (ISRP)

  1. ISRP replaces the IRS systems for entering data from tax returns and processing remittances. The ISRP System meets all processing requirements for the Year 2000, it is Y2K compliant.

    • ISRP-SP replaces the Distributed Input System (DIS) which converts information from paper returns to a format that can be processed systemically.

    • ISRP-RP replaces the Remittance Processing System (RPS) which processes the payments received with returns and vouchers.