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Part 3. Submission Processing

Chapter 10. Campus Mail and Work Control

Section 72. Extracting, Sorting, and Numbering

3.10.72  Extracting, Sorting, and Numbering

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3.10.72.1  (01-01-2008)
Scope

  1. Unless otherwise stated, these procedures apply to all campuses.

  2. This manual provides for:

    1. Extracting, sorting, batching and handling of mail.

    2. Blocking and numbering of non-remittance returns and documents in the Campus, including the control of document locator number (DLN) assignments.

    3. The date stamping of returns and documents where applicable.

    4. The overstamping of remittance where applicable.

    5. The disposition of returns and all other mail received.

    6. The numbering and subsequent disposition of documents used in Payer Correction and Underreporter Processing (URP).

3.10.72.1.1  (01-01-2008)
Objectives

  1. The objectives of the extracting, sorting and batching functions are as follows:

    1. Expedite all remittances to Deposit Activity.

    2. Reduce mail delivery time to the pipeline processing.

    3. Minimize time from receipt of mail through the sorting function to routing.

    4. Identify and control all documents to be processed by the Submission Processing Center (SPC) with a DLN or other number.

    5. Enable documents to be examined as quickly as possible through work specialization.

    6. Provide envelope and date stamping needed for filing timeliness determination made during examination.

    7. Identify and control document group (branch) for management information reporting.

3.10.72.1.2  (01-01-2008)
General

  1. Throughout this manual references are made to actions required by management. It is to be understood that if a manager delegate's authority to someone to act on behalf of management, the person to whom the authority is delegated is considered to be management regarding the item(s) in question. Therefore, no reference will be made in this IRM to "management or their designee," "analyst" , etc.

  2. Throughout this manual, references are made to the maintenance of logs, lists, reports, files, etc. In general, this IRM assumes that the maintenance of such is accomplished by hand. However, at a Center's discretion, maintenance may be accomplished in any manner management deems appropriate. It goes without saying that the general ideal method of maintaining controls would be by Personal Computer.

  3. Throughout this manual, references are made to other IRMs in relation to instructions necessary to properly perform tasks in IRM 3.10.72. Management shall be responsible for having at least one of the referenced IRMs in the work areas library. However, at management's discretion, it may be deemed worthwhile for each employee to possess a copy of a particular manual. In either case, management shall be required to inform the appropriate personnel that the area must be part of the IRMs distribution pattern.

  4. IRM 10.2.12, Facility and Property Protection and IRM 10.2.15, Physical Security Handbook, are the prevailing manuals concerning security measures necessary for date stamps, Document Locator Number stamps, payee name stamps (for negotiating checks), and other stamp devices. Each manual shall be consulted to determine the level and type of security required. Particular attention shall be given to the requirements to limit (one specific individual) and protect against unauthorized use of all stamp devices. Serial numbers (where available) shall be associated with the specified user(s).

  5. Throughout this manual, references are made to "returns" and "documents" . A "return" is a form required by law to be filed; e.g., Form 1040, Form 720, Form 990, etc. A "document" is a form not required by law but is relevant to the particular account (e.g., a subsequent payment, a Computer Paragraph (CP) notice, a SC letter, etc.).

3.10.72.1.3  (01-01-2008)
Restricted Items

  1. The following items are prohibited from the secure receipt processing areas:

    • Lunch Bags

    • Boxes

    • Purses

    • Backpacks

    • Briefcases

    • Sports Bags

    • Bulky Outerwear

    • Hats

    • Shopping Bags

    • Shoulder Totes

    • Fanny Packs

    • CD or Tape Cases

    • Books

    • Newspapers, Magazines and Similar Type Items

    • The use of the camera function on a camera capable cell phone is prohibited in the secure remittance processing area.

      Note:

      Employees will be able to keep personal items at their desks, to eat at their desks (if a past practice has been established), and to transport small items not carried on their person in and out of the secure receipt processing areas as long as such items are displayed in clear plastic bags.

  2. Managers in Remittance Processing areas should ensure visitors are only permitted to carry articles into the restricted area which are absolutely necessary to conduct their business while working in the area. (e.g., portfolios, note pads, repair kits or manuals, binders, paper documentation, etc). Inspections of these items is not necessary upon entering the area. However, visitors should be advised that a member of management will screen these items prior to exiting the restricted area to reduce opportunities of unauthorized disclosure, theft of taxpayer information, or theft of remittances. If the door monitor observes a visitor with an item that is prohibited from the restricted area they should notify a manager. Managers will approach the visitor to discuss the policy of prohibited articles and determine whether the item is necessary for conducting business with the restricted area.

  3. First line managers or a designated representative will conduct at a minimum one monthly random review of each employee to ensure compliance with all security policies as they relate to personal belongings in the secure receipt processing areas.

  4. The review will be completed at start of shift and/or upon entrance to the secure receipt processing area. Management shall maintain documentation that includes the date, unit number, employee name, description of item(s) found and reviewers initials. If no findings, mark "None" on review check sheet.

3.10.72.1.4  (01-01-2008)
Inventory Tracking System

  1. The Batch Block Tracking System (BBTS) is a comprehensive, integrated batch creation and tracking program which incorporates the following:

    • Control over all types of returns: Non-remit (N/R), With-remit (W/R) and Residual Remittance Processing System (RRPS).

    • Unique batch number generation.

    • Unique DLN generation.

    • Generation of Remittance Processing system identification numbers (RPSID) that are assigned to every block that is processed through the ISRP system.

3.10.72.2  (01-01-2008)
Mail Extraction and Processing General

  1. Extraction work shall be accomplished in a controlled and restricted area.

  2. All mail received in the Campus will be extracted only in Receipt and Control. Areas outside of the Receipt and Control Function may request that their mail remain unopened. In such cases, a designated representative from that area will be given access to the mail function and allowed to open such mail within the secure area of Receipt and Control. All remittances found in these envelopes will be sent directly from Extraction to the Deposit Function.

    Note:

    In general envelopes marked "Sensitive Mail" , "Confidential Mail - Open by Addressee Only" are to be opened in the Receipt and Control mail center in each Campus.

    Exception:

    Mail or packages that were never outside IRS control and shipments that were ordered by IRS from known vendors or contractors. In addition, orange and yellow envelopes with a numbered date stamp on the face of the envelope. When these envelopes are received they will be placed back in the original UPS envelope and forwarded to the intended recipient unopened.

  3. The individual centers shall determine the presence of statute control, entity, remittance perfection, etc., personnel within the Extraction area.

  4. All areas of Extraction and Batching shall maintain Received date integrity.

  5. Mail received from Service Center Automated Mail Processing System (SCAMPS) shall remain in the sorts they are received.

  6. Without exception, mail shall be extracted in the following priority order:

    • FTD/ACS

    • With remit code format numbers (CFN) sorted by SCAMPS

    • Flats and Fats

    • Certified/Registered Mail/PDS/return Receipt Requested

    • Balance due notices

    • Estimated Tax (ES) Payments

    • All others in received date order

  7. Extraction procedures for voluntary contributions to Bureau of Public Debt (BPD) are as follows:

    1. Separate remittance payable to the BPD (only) as they are extracted.

    2. Separate BPD contributions from tax remittance.

  8. Forward BPD remittance to Remittance Perfection.

  9. Forward daily all statute delinquent returns with potential Assessment Statute Expiration Date (ASED) to the Statute function for clearance (IRM 25.6, Statute Limitations).

  10. Any return with a received date that is two years and nine months or more after the return Due Date is a potential statute control return.

  11. Do not route returns with the following conditions present to the Statute Control Unit:

    • Marked 6020 (b).

    • TC 59X or ICS notated on the face of the return.

    • Substitute returns prepared by Examination (SFR marked in top margin).

    • returns marked "return Secured by Exam/Compliance."

  12. Although certain sorts are mandatory per this IRM, it is the prerogative of any center to add additional sorts either by enhancing a required sort or by introducing a new sort. However, management shall maintain accurate records for each added sort in order to locally support any increased funding/staffing request. A further caution to management regarding local sort requirements is that sorting shall not be used as a means of circumventing a quality review problem from another area.

  13. Always route the document to the Deposit Activity if a remittance is attached. Exceptions shall be annotated.

  14. Never detach any document/form from another document/form unless specifically instructed.

  15. All documents/forms are considered to be a single loose document/form unless otherwise stated.

  16. Route Form 9465 to CSCO (Compliance Services Collection Operations) when it is attached to the top of the return or document. The return or document shall be processed following normal procedures.

3.10.72.3  (01-01-2008)
Loose Documents received from Files Function

  1. return to originator any items sent to Files in error. Attach a small note stating "Sent to Files in error, please research for correct routing" .

  2. If originator cannot be determined and item was deliverable follow procedures found in 3.10.72.5 (Routing Charts) to route miscellaneous items.

  3. If originator cannot be determined and item was undeliverable follow procedures found in 3.10.72.7.9 (Sorting Undeliverable Mail) to route miscellaneous items.

  4. If originator cannot be determined and item contains an e-file DLN, route to e-file function.

  5. Any checks found in this mail should be treated as a discovered remittance.

3.10.72.4  (01-01-2008)
Special Handling of Forms 9465, Installment Agreement Requests

  1. Taxpayers are able to obtain permission to pay a tax liability by installments prior to the creation of a liability on the master file.

  2. Non-Remit: Form 9465 with a return or document attached.

    1. Detach the form and route to Compliance Services Collection Operations (CSCO).

    2. Follow normal processing procedures for routing returns and documents.

  3. With Remit: Form 9465 with a check and a return or document attached.

    1. Route the remittance and the return or document to Payment Perfection Unit as imperfect.

    2. Route the form to CSCO.

  4. Refer to your local Document Routing Guide or Maildex before contacting National Office for assistance.

  5. The following resources will assist you in identifying forms, letters and notices:

    • Document 7130, IRS Printed Product Catalog.

3.10.72.5  (01-01-2008)
Routing Charts

  1. The following chart contains miscellaneous items received in Receipt and Control and their destination. It is not the intent for this chart to include all items received in Receipt and Control. Refer to the following IRM sections for additional returns/documents and their sorting and numbering instructions:

    • IRM 3.10.72.11-Sorting Individual returns and Documents

    • IRM 3.10.72.11.1-Sorting Business returns and Documents

    • IRM 3.10.72.27.2-DLN Assignment for IMF (MFT30)

    • IRM 3.10.72.27.3-DLN Assignment for BMF

    • IRM 3.10.72.27.4-DLN Assignment for NMF

    • IRM 3.10.72.27.5-DLN Assignment for IRP

    • IRM 3.10.72.27.6-DLN Automated DLN assignment for ELF, MeF, SCRIPS and SFR

  2. Use the following table to route documents and forms:

    DOCUMENT/FORM DESTINATION
    Miscellaneous Correspondence Accounts Management
    Correspondence with key words "Disaster, Hurricane Katrina or Hurricane" Expedite Routing to Appropriate Function
    Correspondence request for Form 4868 extension with attached list(s) of foreign taxpayers AUSPC entity
    Computer Diskettes/CD's Return to Taxpayer
    Disclosure Requests Disclosure Office
    Edited Numbered Documents Final Batching
    Edited Unnumbered Documents Numbering
    E-FAST Tax Package Form 5500 with IRS address OSPC EP Entity M/S 6273
    Loose EPMF Schedules A/C/ D/E/F/G/H/I/R & T Form 5500
    Destroy as "Classified Waste"
    Loose Schedule B Form 5500 Received from DOL, EBSA or IRS Office M/S 6270 - OAMC EP Accounts - Ogden, UT
    Loose Schedule B Form 5500 Received directly from taxpayer M/S 6270 - OAMC EP Accounts - Ogden, UT
    Loose Schedule P, Form 5500 OAMC EP Accounts - Ogden, UT
    Loose Schedule SSA, Form 5500 Box 1(b) checked M/S 6270 - OAMC EP Accounts - Ogden, UT
    Loose Schedule SSA, Form 5500 Box 1(b) not checked M/S 6270 - OAMC EP Accounts - Ogden, UT
    PBGC Form 1 PBGC P.O. Box 64886 Baltimore, MD 21264-4880
    Special Enrollment Exam IRS-P.O. Box 8584, Dallas, TX 75285
    Request for tax forms P. O. Box 8903 Bloomington, IL 61702-8903
    IMF returns with Foreign or US Possession Address AUSPC
    Foreign Information Documents Philadelphia Campus
    BMF returns with Foreign Address OSPC
    BMF returns marked "Amended TETR" Accounts Management
    IMF returns with Foreign Address AUSPC
    Estate & Gift Tax CSPC
    Excise Tax CSPC
    Exempt Organization OSPC
    Tax Exempt Bonds OSPC
    IMF Notice Stubs Accounts Management
    Imperfect TIN on return Entity
    Informant Letters Criminal Investigation
    Information returns Processing (IRP) Documents AUSPC & KCSPC
    LM-2 (EO related Form)
    Dept. of Labor, Office of Labor Mgmt Standards
    200 Constitution Ave Room N 5616
    Washington, DC 20210
    LM-3 (EO related Form)
    Dept. of Labor, Office of Labor Mgmt Standards
    200 Constitution Ave. Room N 5616
    Washington DC 20210
    Misdirected mail (opened in error) Return to Post Office
    OCSE-20 (Dept. of Health & Human Srvs.) Accounting Branch
    PS-1510 Accounts Management
    Request for Installment Agreement CSCO
    Return Receipt Requested (Undelivered with CP 504) CSCO
    3811, LT 11's, CP 77, CP 90, CP 297 & 1058 ACS
    Schedule D (Form 941) CSPC Stop 851G-Team 301
    Schedule H (Loose) Code and Edit
    Schedule K-1 (Loose) Accounts Management
    Security Agreement relating to foreign real estate A/C Int'l 950 L'Enfant Plaza SW, Washington DC 20024, Attn: IN:C:CQ:SPS 6039(c)
    SEP Cards (Self-employed Persons) Individual Master File (IMF) Batching
    Unedited Non-Remittance Documents Batching
    U.S. Bankruptcy Court Papers (Chapter 7 & 13) PSPC DP N781
    CT-2 CSPC Batching
    11C CSPC-send daily "Express" mail with 3210 listing EIN's.
    53 R.O Report CSCO
    56 & 56F Entity
    90-22.1 Report of Foreign Bank & Financial Accounts User Fees Data Center
    211 Memphis ICE 8217
    433A CSCO – For W&I ANSC, ATSC, KCSC only
    433D CSCO – For W&I ANSC, ATSC, KCSC only
    433F CSCO – For W&I ANSC, ATSC, KCSC only
    637 CSPC Stop 5701-G
    656 (Offer in Compromise) COIC
    See IRM 3.10.72.15.3
    706GS (D-1) CSPC
    712 CSPC
    720 CSPC-send daily "Express" mail with 3210 listing EIN's.
    720TO & CS CSPC Stop 5701G
    720X CSPC-Accounts Management Branch
    730 CSPC-send daily "Express" mail with 3210 listing EIN'S.
    843 Accounts Management
    870P Exam
    885E Accounts Management
    900 ACS
    911 Taxpayer Advocate (TAS)
    926 OSPC
    928 Forward to Area Director of IRS for which address is located
    940/940EZ with address correction Destination determined by local management for preparation of new mailing label and remailing E-135 envelope with Notice 426. Do not destroy original envelope.
    940B FUTA Unit
    941C (Loose) No statute issues Accounts Management
    941C (Loose) Statute issue See IRM 3.10.72.14.4 (7)
    941E Code and Edit
    941X Accounts Management
    941X PR Accounts Management
    941X SS Accounts Management
    943 with address correction Destination determined by local management for preparation of new mailing label and remailing E-1 35 envelope with Notice 426. Do not destroy original envelope.
    943A Accounts Management
    944 OSPC & CSPC
    944SP OSPC & CSPC
    944PR OSPC MS 4091
    944SS OSPC MS 4091
    952 OSPC
    966 CSCO SB/SE Only
    966 (Filed Pursuant to Notice 97-4) Entity
    972CG IRP Civil Penalty Function
    982 Accounts Management
    990/990EZ OSPC Imaging Unit (OSPC sort only)
    990BL CSPC NMF Unit
    990-T/990PF OSPC Imaging Unit (OSPC sort only)
    1000 PSPC-Accounts Management
    1001 PSPC-Accounts Management
    1023 CSPC
    1024 CSPC
    1028 CSPC
    1040 Correspondence Originating Function
    1040 with 2555 AUSPC
    1040 with 2555EZ AUSPC
    1040 with 8689 AUSPC
    1040C AUSPC Files
    1040ES Non-Remit Destroy
    1040ES w/correspondence attached Accounts Management
    1040ES with SSN & For name change Entity
    1040 EZ-T Code and Edit
    1040PC Code & Edit
    1040X Doc Perfection Branch
    1040X Marked "Disaster, Hurricane or Hurricane Katrina" Expedite routing to Document Perfection Branch. Hand carry if possible.
    1040X Part II box checked indicating Net Loss Carryback Expedite routing to Accounts Management. Hand carry if possible.
    1041 W/Foreign Address OSPC PO Box 409101
    1041 with 1040-NR Attached OSPC-Accounts Management
    1041A OSPC Imaging Unit (OSPC sort only)
    1041N OSPC
    1041QFT CSPC
    1041QFT W/Foreign Address OSPC PO Box 409101
    1041T Accounts Management
    1042 OSPC MS 4091
    1042S OSPC MS 4091
    1042T OSPC MS 4091
    1045 Expedite to Accounts Management Branch if marked Pig/Hog farmer or Pork Producer.
    1065B OSPC
    1065 (Publicly Traded Partnership) OSPC
    1066 OSPC
    1078 See IRM 3.10.80
    1099 (Copy B only) Accounts Management
    1120 Marked Disaster, Hurricane or Hurricane Katrina Expedite Routing to Document Perfection Branch. Hand Carry if possible.
    1122 Accounts Management
    1127 Appropriate DO special procedure function
    1128 Entity
    1310 Accounts Management
    2032 OSPC Entity
    2050 OSPC EO Entity, M/S 6273
    2063 AUSPC Files
    2119 Accounts Management
    2159 CSCO
    2290 & 2290SP (including Canadian & Mexican truckers) CSPC Batching
    2333 Facilities Management Branch
    2363 Initiator
    2363A Entity
    2363B Return to sender
    2439 Copy C & D Destroy
    2439 Copy A and/or B Accounts Management
    2553 Entity
    2650 CSCO
    2674 CSCO
    2678 Entity
    2688 Code and Edit
    2848 (OAMC/MAMC) See IRM 3.10.72.15.8
    3115 (Loose with Exempt Org Box Checked) Comm. Tax Exempt/Govt Entities Attn:TE/GE:EO P.O. Box 27720 Mcpherson Station Washington, DC 20038
    3115 (Loose with Exempt Organization box not checked Internal Revenue Service Attn: CC:PA:LPD P.O. Box 7604 Ben Franklin Station Washington D.C. 20044
    3177 (TC'S 130, 131, 520, 550) CSCO
    3213CG with payment Deposit Function
    3213CG W/Out payment Accounts Management
    3449 Route to O.I.C
    3491 IRP Civil Penalty Function
    3520 Ship to OSPC.
    3520A (1999 & Prior) OSPC Files
    3520A Current Year & Subsequent OSPC
    3911 Refund Inquiry Function - Sort IMF/BMF and transship to appropriate campus
    3967 (C) (502) Accounts Management
    4029 PSPC Accounts Management
    4149 Appropriate Territory/Area Office
    4159 Accounts Management
    4219 CSCO
    4224 AUSPC Accounts Management
    4361 PSPC Accounts Management
    4422 D.O. Exam
    4461 CSPC
    4461A CSPC
    4466 OSPC Accounting
    4506 RAIVS Unit. "Expedite" Daily Delivery.
    4506-A OSPC EO
    4563 AUSPC
    4598 Accounts Management
    4666A CSCO/ETAP
    4688 Exam Branch
    4720 OSPC Imaging Unit (OSPC sort only)
    4759 CSCO
    4768 (files) CSPC Accounts Management
    4768 (other than files) CSPC
    4768 International PSPC DP S-672 Attn: Michelle Trinacria
    4810 Exam Classification
    4838 (503) Accounts Management
    4868 (Late Filed, Recd after April 22nd) Code and Edit
    4868 (Timely, Non-Remit) ISRP
    4868 With Attachments Code and Edit
    4876A CSPC Code and Edit
    4977 FTD Penalty Unit