3.0.275  Business Results Measures for Submission Processing Functions (Cont. 1)

3.0.275.6 
Refund Timeliness and Error Rate Measures

3.0.275.6.1  (03-09-2012)
Definition of Refund Timeliness

  1. Refund Timeliness is defined as the percentage of refunds from current year Form 1040 family paper returns issued in 40 days or less.

  2. Timeliness is measured using the number of days from two days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we subtract two days from the IRS received date to approximate the date the return was mailed. For paper refund checks, we assume the taxpayer receives their refund the day after the Refund Pay Date shown on the taxpayer's Master File account. For direct deposit refunds, the taxpayer received their refund on the Refund Pay Date. For paper checks, the Refund Pay Date is 6 business days after the return posts to Master File. For direct deposit, the Refund Pay Date is 4 business days after the return posts to Master File.

3.0.275.6.2  (01-01-2002)
Definition of Refund Error Rate

  1. Refund Error Rate is defined as the percentage of current year Form 1040 family paper returns that have an error in the entity portion or in the refund amount. "Systemic" errors (those that are caused by IRS systems) are counted as an error.

3.0.275.6.3  (10-01-2013)
Sample Instructions for Refund Timeliness and Error Rate

  1. Samples are generated for Refund Timeliness and Error Rate review through a system of automated Generalized Mainframe Framework (GMF) runs at Martinsburg and Tennessee Computing Centers. The sample is generated once a week, and output files are sent to the Submission Processing Center. These runs also automate document and Master File transcript requests. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

  2. If you discover problems with the sampling runs, report the problems on KISAM following local procedures.

3.0.275.6.3.1  (10-01-2007)
Refund Timeliness and Error Rate Sample Size/Skip Interval

  1. Download the RT&E Skip Calculator from the Submission Processing web page, under Business Results Measures/Refund Timeliness and Error Rate.

  2. Before using the skip calculator, you will need two pieces of information:

    1. See Document 6209, IRS Processing Codes and Information, to determine the correct week ending dates to use for the specific sample month.

    2. Using the PCB0540 report from Control-D, extract the total projected volume for the sample month (as shown on the Submission Processing web site under RT&E, Exhibit 1) for function 230, organization code 35000, for programs 4311X, 4411X, and 4713X.

    Note:

    X refers to:

    • Timely filed returns (43110, 44110, and 47130 at most centers)

    • Delinquent returns (43111, 44111, and 47131 at most centers)

    • Bypass returns (47136)

    Do NOT use X because that is a summary count which includes prior years and those should not be included in the sample.

  3. Enter the total into the Skip Calculator. Send a copy of the calculator to the designated Headquarters Analyst by the 20th calendar day of the month preceding the sample month.

  4. The Headquarter analyst will consolidate the information from all centers and forward the skip intervals to the GMF Schedulers at the Martinsburg and Tennessee Computing Centers.

  5. The calculator uses a standard sample size of 195 for each center. This was established by Statistic of Income (SOI).

  6. When there is a change in Mail Stop Number, IDRS Employee Number used for MFTRA requests, or MFTRA Bulkdata Password, you must inform the Headquarters analyst prior to the month in which the change is effective.

3.0.275.6.3.2  (10-01-2007)
GMF 1609

  1. GMF 1609 selects current year paper IMF returns using the skip intervals provided to the GMF Schedulers at ECC-MTB (formerly MCC) and ECC-MEM (formerly TCC), see IRM 3.0.275.6.3.1. The run generates a Form 4251, Return Chargeout, for each return that was selected for review.

  2. GMF 1609 runs each weekday of each week and selects the sample from the records of the returns that went to good tape the previous business day.

  3. Contact your local Operations Branch and arrange to have the Forms 4251 forwarded to the Improvement Team rather than to the Files function. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

3.0.275.6.3.3  (10-01-2013)
GMF 1608

  1. One employee in each Submission Processing Improvement Team must obtain a TRS90/Bulkdata password in order for the team to receive the generated GMF files, Notice Review Processing System (NRPS) NOT Runs, and MFTRA prints for Refund Timeliness and Error Measure.

    Note:

    If MFTRA prints are not needed, open an KISAM ticket to have the MFTRA prints discontinued. Remember you still need the Bulkdata password to receive the other files.

  2. To receive the password, use OnLine 5081, Information Systems Users Registration/Change Request, following these instructions:

    1. Logon to the Online 5081 application.

    2. Click "Initiate a personal 5081."
      For a new user - click "Request Access to an Application."
      To reset a password - click "Reset Application Password."
      To delete access - click "Delete Access to an Application." Then annotate in the special instructions, no longer need access.

      Note:

      If replacing the current user see (3).

    3. In the field labeled "Look For" enter the following: MCC TRS90 ACCESS RECORD IBM MF (MCC Master File).

      Note:

      MCC is now ECC however the programmer has requested the "Look For" be entered in this format.

    4. Click on the "Save" tab under Matching Applications.

    5. Click on the "Continue" tab.

    6. Follow prompts.

      Note:

      The new password is good for 1 year (updated in September) and must be renewed at the end of that time period. An email reminder notification will be sent via email approximately two months prior to the renewal date.

    7. If you have any questions about the TRS90/Bulkdata access password, Contact Lora R. Hilliard or Romeo A. Macalintal.

  3. If replacing the current user of TRS90/Bulkdata request, take the following steps once the password is received:

    1. Go to OSGetService and open an KISAM ticket

    2. Select My Technology

    3. Select Fix Existing Software

    4. Complete all required entries

    5. In the description state: Open an KISAM ticket to EOPS-ECC-DMB-IDSE-QSC. Need to have the NRPS.CPAS PARM file and GMF 1680 Card updated with the new password which becomes effective on MM/DD/YYYY. The new password will be sent via secure email upon request from the QSC. Remove (give name of individual that is being replaced and access code) and replace with (provide name of new individual, Service Center, Unit name, and Stop number).

3.0.275.6.3.4  (10-01-2008)
GMF 1610

  1. GMF 1610 is an output file from GMF 1609 and provides a listing of data from each sampled return. Use the data from GMF 1610 to account for each sample return and to determine Data Conversion's use of Entity Index File (EIF) during data input.

  2. This report is available on Control-D and should be printed each week on Wednesday. This report will assist the Improvement Team reviewer or clerk in managing the RT&E inventory. It will also provide EIF access information for the reviewer.

  3. Data from GMF 1610 is loaded into the SMART database each week:

    • DLN

    • Sample date

    • EIF access indicator

    • National Account Profile (NAP) access indicator

    • EIF/NAP response indicator

  4. Download GMF 1610 each week from Control-D and print a copy. You will use GMF 1610 to control sample cases and to review the entity for each sample case.

3.0.275.6.3.5  (10-01-2013)
GMF 1649

  1. GMF 1649 is an output file from GMF 1609. It provides a summary of the week's sample:

    • Date of sample run

    • Skip interval for each return type

    • IDRS employee number

    • Mail Stop number

    • Returns processed by return type

    • Returns sampled by return type

    • Total returns processed

    • Total returns sampled

  2. Review GMF 1649 in Control-D each week to verify that sampling has been completed. If you identify any sample problems, open an KISAM ticket following local procedures and inform the Refund Timeliness and Error Rate Headquarters analyst.

3.0.275.6.4  (12-01-2008)
Refund Timeliness and Error Rate Clerical Procedures

  1. Improvement Team Clerks must establish a suspense filing system for the Refund Timeliness and Error Rate program. Since the sample is selected from good tape, there is a delay of approximately three weeks until the refund is issued before the sample returns can be reviewed.

3.0.275.6.4.1  (12-01-2002)
Refund Timeliness and Error Rate Suspense Files

  1. The Improvement Team employee(s) should prepare folders for each week's sample. The folders should be clearly labeled with the extract ( month-week) and the cycle number. The GMF 1610 listing should be placed in the folder awaiting the returns and MFTRA.

  2. You will receive Forms 4251 each week. Make sure that they are in DLN order. Place the forms in the folder for that week's extract.

  3. You will receive MFTRA transcripts approximately two weeks after the GMF 1609 sample run. Sort the transcripts into DLN order and place them in the suspense folder for that cycle's extract. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

  4. When you receive the extract's returns from Files, check to make sure they are in DLN order. Associate the MFTRA transcripts with the returns. Check the MFTRA and returns against the GMF 1610 listing to verify that all documents and transcripts have been received.

    Document Request
    If: Then:
    charge out information indicates the document is charged out, contact the area to get a copy of the document.
    charge out information indicates the document is not in file, review IDRS to see if the return was re-numbered.
    document cannot be located and 10 days have passed, input a 2nd request using CC ESTABD "V"
    document is not received within 15 days, Code the case for timeliness but exclude the case from error review.

3.0.275.6.4.2  (10-01-2007)
Batch Block Tracking System Research for Refund Timeliness and Error

  1. If a return is not date stamped with an IRS received date use the Batch Block Tracking System (BBTS) to find the IRS received date (This instruction does not apply to ITIN cases, see IRM 3.0.275.6.4.3 ).Sites are not required to date stamp current year returns received prior to April 23rd.

  2. If BBTS research indicates "no record found" for the DLN you entered, research the DLN in the BBTS History File through the intranet using the following instructions:

    1. Open your web browser.

    2. Enter the following URL in the Address Field:
      http://ts00086.tcc.irs.gov:7777/pls/web_query.bb_10g_home

    3. Select your Processing Center.

    4. Enter the DLN, tabbing between boxes. Do not enter the Document Serial Number.

    5. Click on [Generate Report].

    6. Enter the dock received date as the received date in the SMART database.

3.0.275.6.4.3  (10-01-2013)
Individual Taxpayer Identification Number (ITIN) Procedures (AUSPC)

  1. Taxpayer instructions and IRS procedures regarding filing and processing Forms W-7 (Application for IRS ITIN) were revised effective with the 2004 filing season. The filer sends both the Form(s) W-7 application and the Form 1040/A/EZ together to the IRS. The ITIN application process must be completed before the processing of the tax return can be started.

  2. Effective with the 2007 filing season, filers are instructed to mail their ITIN Application (and tax return) to Austin.

  3. Use the ITIN database to find the IRS received date if the return is not date stamped.

  4. Request Form(s) W-7 as appropriate if unsure of the IRS received date.

  5. Exclude ITIN cases from the sample that have had correspondence. Check for any working trails left on the return.

  6. When reviewing cases that have gone through the ITIN process, enter the ITIN Assigned Date from the ITIN Real Time System (RTS) into the Received Date field of the DCI screen (do not enter the IRS Received Date in this field if the return went through the ITIN process).

    • Access the RTS system by logging into the Employee User Portal (EUP) (5081 needed).

    • Select ITIN RTS from the Application box on the left.

    • Select "Search W-7" from the menu on the IRS ITIN screen.

  7. If the case was not excluded from review, enter the literal "W-7" in the Case Number Field. Also enter the IRS Received Date in the Memo portion of the DCI screen.

3.0.275.6.5  (10-01-2013)
Case Review Instructions for Refund Timeliness

  1. Form 1040, 1040A, and 1040EZ returns are processed to the Individual Master File (IMF). Effective with the 2012 filing season, the Customer Account Data Engine (CADE) retired. This means all individual returns are now processed through IMF. Therefore, the term "IMF" or "CADE 2" basically means the same thing.

  2. The Refund Pay Date field is displayed on IMFOL and TXMOD. The Refund Pay Date will display as RFND-PAY-DATE on IMFOL. The Refund Pay Date will display as RFND-PYMT-DT on TXMOD.

    • The "refund payment date" for paper refund checks is the date the Financial Management Service (FMS) mails the paper check.

    • The "refund payment date" for direct deposits is the date FMS transmits the refund to the taxpayer's financial institution.

  3. The 2014 ECC-MTB Positing Cycles chart is in IRM 3.30.123 Work Planning and Control, Exhibit 2. Posting cycles (e.g., the TC 150 and TC 846 cycle) normally carry 5 days with the exception of weeks that have holidays or weeks that had an elongated cycle. A regular cycle would have day 01 (Friday), 02 (Monday), 03 (Tuesday), 04 (Wednesday) and 05 (Thursday). If there was a holiday that Monday, then the cycle days for the week would be 01, 03, 04 and 05. Please note the last day of a cycle will always be referred to as Day 05.

    • A posting cycle 20140902 (for the TC 150 and TC 846) means the second posting day of cycle 09 (February 24). The TC 150 cycle and the TC 846 cycle will always be the same with CADE2.

    • If the return is a direct deposit, the Refund Pay Date is calculated by adding 4 business days to the return posting cycle. This equates to a Refund Pay Date of February 28.

    • If the return is a paper refund check, the Refund Pay Date is calculated by adding 6 business days to the return posting cycle. This equates to a Refund Pay Date of March 4.

  4. Record the Refund Pay Date from IMFOL or TXMOD into the Refund Pay Date field in SMART. Do not enter Received Dates or Refund Pay Dates if:

    • There is no refund (for example, a complete refund offset or a refund freeze).

    • The return was originally mailed to a state revenue agency.

    • Correspondence was sent to the taxpayer requesting missing information or documents. Exception: If the return was sent back to the taxpayer for missing signatures only, then code the case as normal.

    • The return was forwarded to the Integrity Verification Office (IVO) of Return Integrity & Correspondence Services (RICS), Criminal Investigation (CI), or Examination during processing.

    • An indication any identity theft issue caused the delay (e.g., ID Theft indicator on ENMOD or IMFOLE, or a UPC 126 or 147 on the module).

    • Any indication any Fraud issue caused the delay (TC 971 with ACT-CD 052, 121, 134, 137, or 152).

    • Any indication a Refund Hold caused the delay (TC 971 AC 804/805 with accompanying TC 570 with blocking series all 5's).

    • The financial institution flips the requested direct deposit to paper check resulting in an untimely refund.

    • Do not code a defect if a Refund posted with an incorrect IRS Received Date and the correct and incorrect dates are timely and there is no taxpayer impact.

  5. Enter the Refund Method Code in the "M/D" field of the SMART database for each sample case, except for the exclusions listed in (1) above.

    • "M" for a paper refund check

    • "D" for a Direct Deposit

    • Blank if no refund was issued

  6. If there is an Electronic Fund Transfer (EFT) indicator of "0" on the IMFOL screen, determine if there is a bank account number and routing transit number shown on the IMFOL screen (Command Code IMFOB with definer "T" will show the bank account number and routing transit number if entered by Integrated Submission and Remittance Processing (ISRP). If these are present, code "D" in the M/D field. If the codes are not present, code "M."

  7. The Date Difference field on the SMART DCI screen is a calculated field based on the calendar date difference of the dates entered in the Received Date field and the Refund Pay Date field, and whether the return had a paper refund check issued or a direct deposit refund check issued.

    • SMART will add 3 days to the calendar day difference between the Received Date field and the Refund Pay Date field if the refund was issued via paper check.

      Note:

      SMART will add the 3 days because Refund Timeliness is measured using the number of days from 2 days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we assume the IRS Received Date is 2 days after the return is mailed and the taxpayer receives the refund check the day after the Refund Pay Date.

    • SMART will add 2 days to the calendar day difference between the Received Date field and the Refund Pay Date field if the refund was issued via direct deposit.

      Note:

      SMART will add 2 days because Refund Timeliness is measured using the number of days from two days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we assume the IRS Received Date is two days after the return is mailed and the taxpayer receives the direct deposit on the Refund Pay Date.

  8. There are some instances where taxpayers originally tried filing electronically, but were rejected, and subsequently had to file via paper return. A paper return received after the return due date will be considered timely filed by Submission Processing if the filer indicates that an unsuccessful attempt was made to timely file electronically and the paper return is received within 10 days of the notice of rejection. However, for Refund Timeliness purposes, if using the Return Due Date will make the return untimely, then use the Receipt & Control date stamp on these returns as the IRS Received Date on SMART. In the Memo portion of the SMART DCI screen, enter "MeF Rejected" and the return due date used on the return.

3.0.275.6.5.1  (10-01-2013)
Refund Timeliness Who/What/Why Codes

  1. See Exhibit 3.0.275-8. to identify all timeliness errors using the Who, What, and Why codes.

  2. If a sample case's Days Diff is greater than 40 days, try to determine what caused the delay. Research BBTS and the Campus Control File (using IDRS Command Code SCFTR) for these cases to identify delays in normal pipeline processing.

  3. If the untimely refund was due to an Unpostable return, research the reason for delay and enter the appropriate Who/What/Why codes.

    Unpostable Condition
    If... Then...
    The unpostable condition was cleared within Unpostable closure timeframes (14 work days), Code Timeliness Who/What/Why for the condition that caused the unpostable.
    The unpostable condition was not cleared within Unpostable closure timeframes (14 work days), Code Timeliness Who/What/Why "H 1 KK" (Unpostables function delayed entire return).

  4. If an untimely refund was delayed by other post-processing functions, enter the appropriate Timeliness Who/What/Why codes.

  5. If an untimely refund was delayed due to a programming issue/hold, code as systemic using Who Code "J" .

  6. If an untimely refund was delayed due to being held (e.g., late legislation resulting in the delay of processing certain returns), enter Code “J” in the RT Who Code field.

  7. If you determine that processing pipeline functions are causing delayed refunds, consider a special review to determine the causes.

3.0.275.6.6  (12-01-2002)
Case Review Instructions for Refund Error Rate

  1. The Improvement Team Analyst will fully review each sample case for Entity and refund amount errors and will record the review results using the SMART database.

  2. Identify and record all discrepancies between the Entity information and the refund amount shown on the taxpayer's return as submitted and the data posted to Master File.

  3. Refer to the appropriate Submission Processing IRMs for procedural instructions. Identify an error whenever IRM instructions have been followed and there is either an entity or refund discrepancy.

3.0.275.6.6.1  (10-01-2008)
Refund Error Rate Who/What/Why Codes

  1. Identify all Accuracy errors using the Who, What, and Why codes. See Exhibit 3.0.275-8.

  2. Perfect cases are identified by a "P" code in the SMART database Perfect field. If the "P" code is entered, you cannot enter Accuracy or Timeliness Who, What, or Why codes.

  3. Refund Errors must be coded in the following priority:

    • Functional area/processing team Accuracy

    • Systemic Accuracy

    • Functional area/processing team Professionalism

    • Systemic Professionalism

3.0.275.6.6.2  (10-01-2013)
Refund Error Rate Review

  1. The purpose of the Entity Index File processing is to save key strokes during Integrated Submission/Remittance Processing (ISRP) data entry if the name and address information already exists on the Master File.

  2. The Entity Index File is created from entity data extracted from the Business Master File, the Employee Plans Master File and the Individual Master File, as well as Social Security Administration data. The Entity Program determines whether the operator must transcribe the name and address data.

  3. The GMF 1610 file contains the following information about the use of the National Account Profile (NAP) and Entity Index File (EIF) by Data Conversion:

    • NAP/EIF Name Control,

    • NAP/EIF Access Indicator, and

    • NAP/EIF Response Indicator

    The NAP/EIF Access Indicator and NAP/EIF Response Indicator are loaded to the SMART database from GMF 1610 for each sample case. Use this information to focus on the root causes of entity discrepancies, which are the most frequent IRS process errors identified in the Refund Error Rate program. The NAP/EIF access and response codes will also help you identify systemic errors caused by Entity Index File. Such as: If short/intermediate/long has been generated and is different than what is shown on IMFOL and corrections could have been input/made then, see IRM 3.0.275.2. and IRM 3.0.275.3. See Exhibit 3.0.275-9 for a table of Access Indicators and Response Codes.

  4. The following is a list of Entity Codes:

    1. EC 1 - LONG ENTITY - Complete name(s) and address changes entered on a preprinted label or handwritten name and address information.

    2. EC 2 - SHORT ENTITY - Check Digits or Name Control entered.

    3. EC 3 - INTERMEDIATE ENTITY - Street address, City, State and ZIP entered.

    4. EC 4 - REPEAT UNPOSTABLE - Results from adding a name line to a prior EC 2 unpostable case.

    5. EC 5 - PARTIAL ENTITY - Complete name(s) entered. May also include a second name line.

  5. Record all significant discrepancies in the database.

  6. You will identify minor entity discrepancies in the Professionalism section of the SMART database. See Exhibit 3.0.275-8 for a list of Professionalism Who/What/Why codes. See IRM 3.0.275.2, Entity Review for Letter Error, Refund Error, and Notice Error Review and IRM 3.0.275.3, Address Review for Letter Error, Refund Error and Notice Error Review.

  7. If you identify a significant entity discrepancy and the taxpayer requested a Direct Deposit refund, check the Direct Deposit Indicator on the IMFOL screen to determine whether or not the refund was deposited ( Exhibit 3.0.275-10 for Direct Deposit Codes).

    Direct Deposit
    If... Then..
    Direct Deposit was honored, code the discrepancy under Professionalism.
    Direct Deposit was not honored due to the entity discrepancy, code the discrepancy under Accuracy.
    Direct Deposit was not honored due to routing or account number error, determine whether the discrepancy is significant or not and code accordingly.

  8. Route cases that require entity corrections to the Entity Team following local procedures.

3.0.275.6.6.3  (03-09-2012)
Refund Error Rate Refund Amount Review

  1. Math verify each sample return to validate the refund amounts shown on the return as submitted and as posted to Master File. Identify IRS mistakes, regardless of dollar amount, using the Accuracy Who/What/Why codes in the SMART database.

  2. Verify total wages shown on the return against Form(s) W-2, using no tolerance other than a $1.00 difference as a result of rounding.

    Note:

    Use CC IRPTR (definer L and O), as necessary.

  3. Verify withholding shown on the return against Form(s) W-2, using no tolerance other than a $1.00 difference as a result of rounding. If the taxpayer claims more withholding than is supported by Forms W-2, consider the withholding not supported and record an error.

    Note:

    Use CC IRPTR (define L and O), as necessary.

  4. Review each return to determine if the taxpayer requested a direct deposit of their refund. If a direct deposit was requested, review the IMFOL screen to determine whether or not the request was honored (Command Code IMFOB with definer T will show the bank account number and routing transit number if entered by ISRP). See Exhibit 3.0.275-10 for a listing of EFT and Direct Deposit Reject Reason Codes.

    EFT Indicators
    If... And... Then...
    There is an EFT indicator "1" Data Conversion input the correct routing number from the return Code Accuracy Who/What/Why with "A 31 CC" and enter "Mailed" in the M/D field
      Data Conversion did not input the correct routing number Code Accuracy Who/What/Why with "D 31 CC" and enter "Mailed" in the M/D field
    There is an EFT indicator "6" There is a TC 846 present on the account Code Accuracy Who/What fields with "A 37" and code for timeliness
      There is no TC 846 present on the account Code Accuracy Why field with "ZZ" and do not code for timeliness.

  5. Review the IMFOL screen for refund offsets (Transaction Code 898 for other agency offsets and Transaction Code 826 for IRS offset).

    1. If the refund was completely offset, enter Accuracy Who/What/Why "Z, 37, NN" to exclude the case from the sample.

    2. If there was a partial refund, code accordingly.

      Note:

      Partial offsets code as a regular refund case. For example, if the amount of the offset and the amount of the refund match the amount of the refund the taxpayer computed, and there are no errors identified as far as timeliness or Accuracy, then the case would be coded as Perfect. If the offset amount and the refund amount combined are different than what is shown on the tax return, perform research to determine the reason for the difference and code accordingly.

  6. If refund interest was generated because the received date was not input or edited, or the Received Date was input or edited incorrectly, code as an Accuracy error.

3.0.275.6.6.4  (03-09-2012)
Missing Returns and Forms W-2

  1. If you do not receive sample returns after your second request, code Accuracy as Who/What/Why Z, 42, ZZ. The case will not be included in calculations of Refund Error Rate.

  2. If Form(s) W-2 have been detached from a return, code Accuracy as Who/What/Why Z, 42, ZZ. The case will not be included in calculations of Refund Error Rate.

    Note:

    Research CC IRPTR (definer L and O), if missing W-2's.

  3. Only record the received date and refund date when detached W-2 cases are coded Who/What/Why Z, 42, ZZ and a refund was issued.

3.0.275.6.6.5  (10-01-2013)
Duplicate Filing Conditions

  1. Do not code for Accuracy or Timeliness if the sample case is a duplicate filing or if the refund from the sample case is frozen due to a subsequent duplicate filing on the same Social Security Number (SSN). Code Accuracy Z, 42, ZZ and leave the Refund Method Code, Refund Received Date and Refund Pay Date blank.

3.0.275.6.6.6  (10-01-2013)
Non-compute Returns

  1. If a non-compute return results in a refund, do not code for Accuracy or Timeliness. Enter Accuracy Why Code "ZZ" and leave the Refund Method Code, Received Date, and Refund Pay Date fields blank.

3.0.275.6.6.7  (12-01-2002)
Credit Elect Discrepancies

  1. If you discover that a refund was issued but should have been partially or fully credited to the following tax year, review the data entry to determine if Data Conversion input the correct credit elect amount. If not, code Accuracy Who/What/Why accordingly. If Data Conversion input the correct credit elect information, code Accuracy Who/What "J 32" (Other Systemic/Credit Elect) with the appropriate Accuracy Why code.

3.0.275.6.7  (03-09-2012)
Data Input Instructions for Refund Timeliness and Error Rate

  1. Input case review data to the SMART database.

  2. From the Refund Timeliness and Error Rate main menu, click on the button "DCI Input Form."

  3. Enter the appropriate information into each field of the electronic form from the review documents or from a paper DCI, depending on local procedures. The Sequence Number, Form, Type, and Date Difference fields will generate automatically. You must fill in all other fields by typing or by selecting from a pull-down menu.

  4. Enter the following case identification information for all sample cases:

    1. Week Ending: For work entered Monday through Friday, use the Saturday date of that week in MM/DD/YY format (slashes required).

      Note:

      Ensure the dates are input exactly as MM/DD/YY or the database will misread and miscalculate the date difference.

    2. Office: This field generates from the GMF 1610 weekly import.

    3. Employee Number: This field generates from your log in.

    4. Case No: (optional) Enter a case number following local procedures.

    5. DLN: This field generates from GMF 1610 weekly import.

      Note:

      Allow page to load completely before selecting DLN from drop down menu or cycle field will not populate correctly and DCI will have to be reloaded.

    6. Form: This field generates from the DLN.

    7. Type: This field generates from the DLN.

    8. M/D: Select either "Mailed" or "Direct Deposit" from the pull-down list as appropriate for the refund you're reviewing. If no refund was issued, select "Blank" .

    9. Received Date: Enter the IRS date stamp received date or if no date stamp enter the receive date from BBTS.

    10. Refund Pay Date: Enter the Refund Pay Date from IMFOL for the sample case. If no refund was issued, leave this field blank.

    11. Date Diff: This field is generated from the "Timeliness Results M/D" , "Received Date" , and "Refund Pay Date" fields.

      Note:

      If you edit the Received or Refund Pay Date fields after data entry, you must make a selection in the M/D field again, even if it does not need correction. The Date Diff field will recalculate only if the M/D field is re-entered.

    12. Month: This field is generated from your entry in the "Refund Pay Date" field.

    13. Year: This field is generated from your entry in the "Refund Pay Date" field.

    14. Perfect Case (P): Select "P" from the pull-down list only if you did not identify Accuracy or Timeliness errors. If "P" is selected, the Who/What/Why Accuracy and Timeliness codes are blanked out and you cannot select them.

      Note:

      "P" must be coded if received and refund dates are blank and case is otherwise correct.

  5. Enter the following fields only if you have identified an error on the sample case:

    1. Timeliness Who: Select the appropriate Who code from the pull-down list if the "Date Diff" field is greater than 40.

    2. Timeliness What: Select the appropriate What code from the pull-down list if the "Date Diff" field is greater than 40.

    3. Timeliness Why:

      Note:

      There are a total of three Professionalism Who/What/Why code combinations available.

    4. Error Rate Who: Select the appropriate Who code from the pull-down list if you identified an Accuracy error in the sample case.

    5. Error Rate What: Select the appropriate What code from the pull-down list if you identified an Accuracy error in the sample case.

    6. Error Rate Why: Select the appropriate Why code from the pull-down list if you identified an Accuracy error in the sample case.

      Note:

      There are a total of three Accuracy Who/What/Why code combinations available.

    7. Professionalism Who: Select the appropriate Who code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

    8. Professionalism What: Select the appropriate What code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

    9. Professionalism Why: Select the appropriate Why code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

      Note:

      There are a total of three Professionalism Who/What/Why code combinations available.

    10. Cycle: Automatically generated field. Allow page to load completely before selecting DLN from drop down screen or cycle field will not populate correctly and DCI will have to be reloaded.

    11. EIF/NAP: Automatically generated field.

    12. Systemic: This field will calculate from your entry in the Accuracy Who Code fields.

    13. Memo: Use this field to capture specific information about the sample case. The field is limited to 250 characters. Use the following priority when entering data:

      Refund Error and Timeliness Rate Memo Field Entries
      Priority Entry
      1 Explanation of entity Accuracy errors following "Incorrect/Correct" format. For example, if the first four characters of the taxpayer's last name was entered incorrectly "Dvais/Davis" .
      2 Explanation of refund Accuracy errors. Do not simply restate the Accuracy Who/What/Why codes. Instead, specifically explain the error condition.
      3 Explanation of timeliness errors. Do not simply restate the Timeliness Who/What/Why codes. Instead, specifically explain the error condition.

      Note:

      Do not enter sensitive taxpayer data in the Memo field. Never enter an SSN, and do not enter a taxpayer's full name or address.

    14. Status Indicator: Automatically generated.

  6. When all fields have been entered for the sample case, click on the "Add" button. The database will perform the following validity checks:

    • If Perfect field is "P" , Systemic field must be blank.

    • If Perfect field is blank, Systemic field must have an entry.

    • If Perfect field is blank, Accuracy or Timeliness Who must have an entry.

    • If Accuracy Why is "ZZ" , Accuracy Who and What must be blank.

    • If Accuracy Who is entered, Memo field must have an entry.

    • If Timeliness Who is entered, Memo field must have an entry.

    • Received Date must be earlier than Refund Pay Date.

    • Refund Pay Date year cannot be greater than current year.

    • If current month is January or February, Refund Pay Date year cannot be earlier than first prior year.

    • If current month is March or later, Refund Pay Date year cannot be earlier than current year.

    • If current month is January or February, Received Date year cannot be earlier than first prior year.

    • If current month is March or later, Refund Pay Date year cannot be earlier than current year.

    • If Received Date is entered, Refund Pay Date must be entered.

    • If Refund Pay Date is entered, Received Date must be entered.

    • If Refund Pay Date is entered, Refund Method M/D must be entered.

    • If Refund Method M/D is entered, Refund Pay Date must be entered.

  7. If any validity checks fail, a window will display the validity problem found and your cursor will be placed in the invalid field. Correct the invalid data and press the "Add" button again. Repeat this procedure as necessary until all validity checks pass.

  8. Cancel - Use this button to exit a record when the data was incomplete or should not have been selected.

3.0.275.6.8  (12-01-2002)
Reports For Refund Timeliness and Error Rate

  1. Select the reports you want to display or print by clicking the "Reports" menu from the Refund Timeliness and Error Rate main menu:

    1. National Timeliness Reports

    2. National Error Rate Reports

    3. Timeliness Reports by Campus

    4. Error Rate Reports by Campus

    5. Print DCIs by Campus and Weekending

    6. Monthly Detail Report by Campus

  2. When prompted, enter the appropriate Center and time period (month, fiscal year, or beginning and ending dates) to generate the report.

  3. The "Print DCIs by Campus and Weekending" report will display the DCI entries for each record input to the database for the time period selected. Each DCI record will display on a separate page. You can use these prints to validate data entry and as an audit trail for your historic files.

  4. The "Monthly Detail Report by Campus" will display the Sequence Number, DCI, Form, Master File code, and Perfect Case code for all cases in the time period selected. The report is sorted by week-ending date and by DCI Sequence Number.

3.0.275.6.8.1  (12-01-2002)
National Refund Timeliness Reports

  1. The following National Timeliness Reports are available:

    1. Monthly National Timeliness Report-All

    2. Monthly National Timeliness Report by Campus

    3. National Timeliness Report-All

    4. National Timeliness Report-Who

    5. National Timeliness Report-What

    6. National Timeliness Report-Why

3.0.275.6.8.2  (12-01-2002)
National Refund Error Rate Reports

  1. The following National Error Rate Reports are available:

    1. National Error Rate Report-All

    2. National Error Rate Report-Who

    3. National Error Rate Report-What

    4. National Error Rate Report-Why

3.0.275.6.8.3  (12-01-2002)
Refund Timeliness Reports by Campus

  1. The following Timeliness Reports by Campus are available:

    1. Timeliness Reports by Campus-All

    2. Timeliness Reports by Campus-Who

    3. Timeliness Reports by Campus-What

    4. Timeliness Reports by Campus-Why

3.0.275.6.8.4  (12-01-2002)
Refund Error Rate Reports by Campus

  1. The following Error Rate Reports by Campus are available:

    1. Error Rate Reports by Campus-All

    2. Error Rate Reports by Campus-Who

    3. Error Rate Reports by Campus-What

    4. Error Rate Reports by Campus-Why

3.0.275.6.8.5  (03-09-2012)
Refund Timeliness and Error Rate Reporting Periods

  1. We use the Refund Pay Date to determine a review month. For example, all cases with refunds issued in March are considered March cases.

  2. The review month cut-off date is the 22nd day of the month, following the end of the sample month.

3.0.275.7  (10-01-2006)
Definition of Notice Error Rate (NER) Measure

  1. NER is the percentage of incorrect Submission Processing Master File notices issued to taxpayers. Includes the percentage of errors made as a direct result of an employee's action and/or the result of an automation/computer generated/IRM process. These errors may have a negative impact on the taxpayer.

  2. The NER Business Results Measure program provides us with the ability to assess the Accuracy of Master File notices that are generated from Submission Processing functions within the Submission Processing Center.

  3. Prior to Fiscal Year 2001, the IRS Submission Processing functions reported notice accuracy rates based on all data gathered through the Notice Paper program. That review included both Submission Processing and Accounts Management Computer Paragraph (CP) notices. Effective April, 2002 the review includes only the Submission Processing CP notices.

  4. Starting in Fiscal Year 2001, Submission Processing reported their Notice Error Rate based on Submission Processing CP notices only. See Exhibit 3.0.275-11 for a list of Submission Processing CP notices. The Accounts Management Notices will no longer be collected through the Notice Paper review process. For FY 2002, IMF and BMF, included systemic defects in the rates reported on the Commissioner's Monthly Report (CMR). For FY 2003, IMF continued to include systemic defects in the rates reported on the CMR. For BMF, systemic defects were not included in the rates reported on the CMR. For FY 2006, IMF and BMF will include systemic defects in the rates reported on the CMR.

3.0.275.7.1  (10-01-2013)
Notice Error Rate Sample

  1. Sites conduct sample reviews of 300 cases per month of all Submission Processing CP notices and provides data to the Balanced Measurement System.

  2. The Notice Error Rate Measure samples closed cases using a "skip interval" approach for Notice Review.

    • SOI Staff will calculate the skip interval monthly and provide each SPC with a skip interval prior to the start of each month. The skip interval will remain in place for the entire month and must not be altered except at the request of Headquarters.

    • Headquarters will provide sampling assumptions to the Interactive Computer Systems Analyst (IAP CSAs) in information Technology Services (ITS) prior to the first cycle of each month.

    • If the sample needs to be increased contact the Headquarters analyst. You may increase your required sample size by decreasing your skip interval. If you choose to do this you must begin using the increased sampled size at the beginning of the month and continue through the entire month.

  3. Automated sampling programs will sample non-select and never select notices using a systematic random sampling technique. The programs generate copies of the selected notices and Form 4251, Document Request, (using the controlling DLN on the account).

    Note:

    See IRM 3.0.275.6.3.3. (2) if a TRS90/Bulkdata password has not been obtained.

    The run numbers are:

    • NOT87BH

    • NOT90IM

    • NOT91IM

    Output from these runs:

    • Print Sample Notices: NOT8710, CPAS38AGM, CPAS40AGM, NOT91IM

    • Print Forms 4251: NOT8720, NOT9020, NOT9120

    • Print List of Sample: NOT8740, NOT9040, NOT9140

      Note:

      The Print List of Sample can now be found on Control D. The EONS runs that have been moved to Control D will show with an E after the run number. When accessing Control D Reports you can identify your SPC by the last alpha character of the run. The following identifies the SPC: A - Andover, C - Austin, B - Atlanta, G - Kansas City, E - Cincinnati, F - Fresno, and I - Ogden.

  4. Some of our notices are going through notice conversion which uses the software called Expression to create taxpayer notices. This new software will eventually replace autograph notices. The following are the new run numbers for IMF and BMF Expression notices:

    • IMF Report Name NS40094X: List of Sample

    • IMF Report Name NS40092X: Prints Forms 4251

    • IMF Report Name NS40091X: Displays the sample notice

    • IMF CP20 Report NS40191X: Displays the sample notice

    • IMF CP20 Report NS40192X: Prints Form 4251

    • IMF CP20 Report NS40194X: List of Sample

    • BMF Report Name NS20091X: List of Sample

    • BMF Report Name NS20092X: Print Forms 4251

    • BMF Report Name NS20094X: Displays the sampled notice

      Note:

      The letter "X" in the report names above represent the SPC.

    All CPPAS notices have been converted to Expression software.

  5. Beginning October 2009 ITIN notices were added to the review. The following are the new run numbers for ITIN notices:

    • Report Name NS60191X: Displays the sampled notice for CP565

    • Report Name NS60291X: Displays the sampled notice for CP566

    • Report Name NS60391X: Displays the sampled notice for CP567

    • Report Name NS60192X: Print Form 4251 for CP565

    • Report Name NS60392X: Print Form 4251 for CP567

    • Report Name NS60194X: List of Sample for CP565

    • Report Name NS60294X: List of Sample for CP566

    • Report Name NS60394X: List of Sample for CP567

    Note:

    For ITIN, Austin must check the Control D files daily to get their sample information.

  6. You must manually sample notices from released work in Notice Review. See Exhibit 3.0.275-11., Notice Error Submission Processing Notice CP Numbers, for a list of notices that are required to be sampled. This includes the sampling of associated notices. Use the skip interval provided by Headquarters when completing daily pulls. Do not sample voided cases.

  7. If the sample pulls the Taxpayer notice and the associated notices (CAF/RAF notice) these notices will be excluded from the sample. Only code the taxpayer notice and load into the SMART database. If errors are identified on the associated notices send feedback to the Operation.

  8. In September 2009 the Austin Service Center began the review of Individual Taxpayer Identification Number (ITIN) with BMF ITIN to follow.

3.0.275.7.1.1  (10-01-2012)
Role Responsibilities of the NER Analyst

  1. You will thoroughly examine each sampled notice using the guidelines in this IRM. You will record the results of your case analysis in the SMART database, using the NER DCI. The sampled records consist of notices as identified on the IMF and BMF Notice Controls (RUN460–3E and 160–3D) provided by Information Technology Services.

  2. New starting in July 2011 some notices will have the SSN masked with a 2D Barcode. The purpose of the barcode is to prevent disclosure and identity theft. Notices reflecting the barcode will need to be scanned (using the handheld scanner provided to your SPC). The handheld scanner will unmask the SSN, MFT and tax year, and display the information on the computer screen. All sample cases will require the appropriate IDRS Command Codes to research the account(s) involved.

  3. Review sample cases after all IDRS input action is complete. You must review the actual input against case documentation to ensure all actions were appropriately taken.

  4. If an error is found during the Improvement Team review of a Notice Review case, Improvement Team will charge an Accuracy or Professionalism error (depending on the type of error) if the Operation made the decision not to pull the return to complete the On Line Notice Review (OLNR) and a return was required for that review.

  5. If the return was not pulled because of the Notice Review Processing System (NRPS) determination by Headquarters or the return is unserviceable (files did not have return, e.g., return destroyed, Federal Record Center (FRC), or held in another area), Improvement Team will charge a systemic Accuracy or systemic Professionalism error if the return was required for that review. Improvement Team will notify Notice Review of any trends that are identified.

  6. For source documents sent to Files, prepare a document request following local procedures. If the charge-out indicates it is charged out to another area contact the area to get a copy of the document. If the charge-out indicates document not in file, review IDRS to see if the DLN was re-numbered. If after thorough research you cannot locate the document and at least 10 days have passed, input a second request using CC ESTABD "V." Use Command Code RTVUE or BRTVU if the document is not received within 15 days or Files charge-out information indicates the document has been destroyed. (Use Command Code RTVUE or BRTVU as the return information for case review.)

    Note:

    Notices can be coded as accurate or inaccurate without documentation for two months from the Monthly Report Run date.

  7. Follow the general review guidelines in IRM 3.14.1, IMF Notice Review, and IRM 3.14.2, BMF Notice Review, when reviewing the entity portion of a notice.

    Note:

    Do not accept edited tax examiner figures.

    Note:

    See IRM 3.0.275.2. Entity Review for Letter, Refund, and Notice Error and IRM 3.0.275.3, Address Review for Letter, Refund, and Notice Error.

  8. For all notices, determine if the issue of the notice is appropriate. See Document 6209, IRS Processing Codes and Information, for a list of notices and their conditions.

  9. Review the notice thoroughly to ensure that the notice text is correct. If necessary, check the notice text against its PRP or FSP. Determine if the notice correctly describes the state of the taxpayer's account.

  10. Review IDRS, RTVUE, BRTVU, relevant IRMs, and other research sources to ensure a thorough review of the notice. For ELF returns TRDBV will reflect what the taxpayer input using E-file. Command Code TPIIP can be used to obtain a TIN on notices that have a masked TIN.

  11. Always check the notice text against the PRP when one of the following conditions exist:

    • A new notice is developed and issued

    • Existing notices are redesigned or have wording changes

    • Notices are issued at the beginning of the year after MF "dead cycles"

    Notice Determination
    If.. Then..
    A defect is identified in a notice 1. You must determine whether the standard text or the input text is incorrect.
    2. Review PRP/FSP documentation to identify standard text defects.
    3. Review input documents and case files to identify input text defects.
    A notice depends on the 23C date or the correspondence date, and the 23C date or the correspondence date is incorrect Consider the notice in error.
    You determine that an error condition requiring correction exists on a case you review You must initiate action to correct the error. Note: Local management will determine whether to return the case to the area responsible for the error or to another function for correction.
    You determine that a sample case meets criteria for referral to Collection, Examination, or Criminal Investigation, and it has not been previously identified for referral by another area. Note: If a letter attached to a balance due return requests an installment agreement and there is no notation on the return of a referral, forward the letter to the Collection Branch. Route the case to the appropriate area for review.
  12. Review the "Submission Processing Notice Systemic Error Chart" for correct coding instructions for all systemic errors. This chart is located on the Submission Processing web site, Balanced Measures, Notice Error Rate. For reporting Systemic Problems, see IRM 3.0.275.1.8.

  13. Handle the case based on the guidelines established by the area to which the case is being referred.

  14. Provide defect feedback to the appropriate functional areas. Whenever possible, recommend solutions to eliminate future defects.

  15. Provide taxpayer error information to the Public Affairs Officer.

  16. Review correspondence issued to taxpayers as part of your case review when attached to the return. Correspondence must provide a correct and complete response to all taxpayer and IRS issues. Correspondence must resolve the taxpayer's issue, request additional information from the taxpayer, and/or notify the taxpayer that information has been requested from outside the IRS. For more information on correspondence requirements, see IRM 21.3.3, Incoming and Outgoing Correspondence/Letter.

3.0.275.7.1.2  (12-01-2010)
Dual Notices in the Notice Error Rate Sample

  1. The overall impact of extra Submission Processing Dual Notices being sampled is being addressed through the Unified Work Request (UWR) process. Until this programming change is completed, it is acceptable for you to manually reduce your sample of Submission Processing Dual Notices if the Improvement Team Manager determines that the number of Dual Notices received in your sample would create a hardship to review and enter into the database. Generally, the number of excess Dual Notices should be greater than five per cycle to be considered a hardship. If this is the case, you may manually reduce the Dual Notices in your sample according to the following procedure:

    1. For each cycle, calculate the number of Dual Notices you would have expected to receive based on the volumes of Dual Notices on the corresponding Notice Control Listing report.

    2. Compare this number to the number of Dual Notices actually received. If the number of Dual Notices received is greater than the number expected, calculate the difference (number received minus number expected). For example, if the expected number was 50 and you received 55, the difference is 5.

    3. Divide the number expected by the difference amount. For the example here, 50 divided by 5 equals 10.

    4. Use the result in 3) above as your skip interval. For the example here, you would remove every 10th Dual Notice.

  2. If you remove Dual Notices from your sample, every Dual Notice in your sample must have an equal chance of being removed. You must perform the reduction up front, rather than by attrition (i.e., do not just eliminate the Dual Notices for which you don't receive the return).

3.0.275.7.2  (10-01-2007)
Notice Error Rate Case Analysis and Data Collection Instrument (DCI) Coding

  1. You will fully review each sample case for Accuracy and Professionalism errors and will record the review results using the NER Data Collection Instrument (DCI). Submission Processing Notice Error Rate cases are entered into the SMART Database.

  2. You can enter up to five (5) Who, What, Where, and Explanation of Error (EXPOE) Codes for any given case record.

    Note:

    Charge only one defect if the area, error code, and the situation is the same.

  3. If during your review a Systemic Professionalism error was identified, do not code. However, a PRT will be required for every systemic professionalism error. Check the Systemic Chart to see if the error has been reported previously. If not, complete the PRT and submit it to HQ. The PRT's will be monitored by the HQ Measure owner until correction. See IRM 3.0.275.1.8, Problem Reporting Instructions for Notice and Letter Error Rate, on completing a PRT.

  4. If the dollar amounts on the notice when compared to the taxpayer figures on the return differ by $5.00 more/less (excludes math errors) then fax the case to Headquarters for a determination of coding.

  5. When a defect is identified, determine the type, and then the responsible party. The following is the priority:

    1. Non-systemic Accuracy (Taxpayer, Lockbox, Field Office, Operation by pipeline order). If more than one error, code the Taxpayer error last.

    2. Systemic Accuracy (IRM, system (computer/EIF))

    3. Non-systemic Professionalism (Taxpayer, Lockbox, Field Office, Operation by pipeline order). If more than one error, code the Taxpayer error last.

    Note:

    Cases pulled in Notice Review - do not code EIF, NAP, or other systemic errors since Notice Review can correct the notice. If Notice Review did not correct the notice, charge the defect to them.

    Note:

    If a notice was incorrect when it was mailed and a taxpayer error played a part, charge a taxpayer error when there are no procedures/programs in place to correct the error. If taxpayer errors are corrected through pipeline and Notice Review controls, resulting in an accurate notice, no taxpayer error is coded. Taxpayers are generally informed of their errors by Taxpayer Notice Codes used in the notice. If the notice is accurate, do not code an error.

3.0.275.7.2.1  (10-01-2008)
Notice Error Rate SMART DCI Input Instructions

  1. To open the Business Results Measures Home Page:
    http://balmeas.enterprise.irs.gov.

  2. Click on Notice Error Rate Tab.

  3. Notice Error Rate Home Page is shown
    http://balmeas.enterprise.irs.gov/NoticeError/NoticeErrorHome.asp.

  4. Click on DCI Input Form key and select either "Search Record," "New Record," or "Exit."

  5. Follow the "Business Results Measures for Submission Processing Functions, Job Aid," (Catalog Number 37697B, Training 6804-701), page 5-5, steps 1-22. To obtain a copy of the Job Aid go to: http://coursebooks.enterprise.irs.gov/ on the left hand side select Business Measures which will bring up the training 6804-701, click on the training number.

  6. The following Exhibits provide Who, What, Where, and EXPOE Codes: Exhibit 3.0.275-14, Exhibit 3.0.275-15, Exhibit 3.0.275-16 and Exhibit 3.0.275-17.

3.0.275.7.2.2  (10-01-2005)
Timely Entry of Notice Error Rate Cases

  1. To ensure that your monthly error rate (calculated from your sample) represents the center actual error rate (in the overall population of notices generated), you must enter as many cases as possible before the report deadline for the sample month. Cycles that will be included in the month's report are provided in the yearly Cycle Chart, (Exhibit 3.0.275-12.) for this reason, it is important that all centers remain current on the cycles you are coding.

3.0.275.7.2.3  (10-01-2005)
Non-Receipt of Source Document for Notice Error Rate Review

  1. If the source document (return) is not secured prior to the two month data cut-off deadline, Submission Processing notice cases can still be input to the SMART database without the source document (return) and after the cut-off deadline, however, these cases will not be included in the official Notice Error Rate calculations because they do not represent a full review of the notice, especially the Entity area. It is likely that several Submission Processing cases sampled each month will be excluded from official error rate calculations due to the non-receipt of the return. However, information on these notices will still be available on the SMART database to capture other types of errors that can be identified without the return (e.g., systemic errors) and will be available for diagnostic purposes.

    Note:

    It is extremely important to review all your sample cases before the one month data cut-off date.

3.0.275.7.2.4  (10-01-2008)
Notice Error Rate Systemic Errors

  1. The Notice Error Rate measure considers only SMART database Who Codes of "7" (Computer Program/Hardware-Not EIF, or SCRIPS), "9" (IRM/Program Requirement Package/PRP/Forms Instructions), "25" (EIF or Systemic Problems), and "26" (SCRIPTS/ELF/MAG Tape), to be true systemic errors. Systemic errors are distinguished from errors that have a human cause.

  2. SMART database Who Codes "23" (Area Office), "28" (Post Office), "29" Financial Management Service/Revenue Financial Management (FMS/RFC), "31" (Lockbox etc..), "34" (Other Government Agency), and "35" (Other Accounts Management/Compliance/campus (SC) unknown), are excluded from the Notice Error Rate calculations, since the error is not caused by the IRS Submission Processing.

  3. All other Notice Error Rate Who Codes not included in 1 and 2 above, are included as "non-systemic" in Notice Error Rate calculations on the SMART Database.

3.0.275.7.2.5  (10-01-2007)
Notice Error Rate Professionalism and Accuracy Errors

  1. You will identify each defect you find as either a Professionalism or an Accuracy error. Professionalism errors are relatively minor and do not represent inaccurate information being given to the taxpayer. For example, incorrect spacing or punctuation would be considered Professionalism errors. These errors are not inaccuracies, but they do not present a professional product to the public. In contrast, Accuracy errors do represent inaccurate information being given to the taxpayer.

  2. See Exhibit 3.0.275-19 for Professionalism coding chart. This chart contains information on when accuracy errors should be charged.

  3. The following are examples of Accuracy errors. This list is not inclusive.

    • Incorrect/misleading information in notice text (e.g.," because we refigured your tax" when we didn't, "explained on following pages" when there are no more pages, incorrect dollar amounts, etc.)

    • Entity Index File (EIF) errors, except as noted in these instructions

    • Missing literals relating to dollar amounts shown in the notice text or payment stub (e.g., a dollar amount with no clear explanation)

    • Missing telephone number when referenced in notice text

    • Dual Notice name line when name is cut off (truncated)

    • Incorrect paragraph chosen (i.e., IRM instructions not followed)

    • Incorrect correspondence received date

    • Failure to update change of address

3.0.275.7.3  (10-01-2013)
Notice Error Rate Entity Area Coding Guidelines

  1. You must secure the return for each sample case to determine the presence of Entity defects.

    Note:

    No return is required for ELF documents.

  2. Check the entity update cycle and make sure the return reflects the updated entity. Otherwise, secure an additional return to verify the entity. Do not use CFOL command codes to verify entity. CFOL reflects what posted to the account, not necessarily what was on the return. Otherwise, secure an additional return to verify the entity. There is no need to request the Doc. 63 because it will only show the information that was input.

  3. For IMF and BMF, if an additional return was requested to verify the entity of a current processing year return and the return requested was from a prior year processed return, which had an entity error, take the following action:

    • Do not charge an error to the Operation if the entity information is incorrect. If appropriate, provide Feedback to the Operation. This would be considered feedback since a different return is being used to verify the accuracy of the entity on the current return. Code the case with WHO Code 25 (EIF or NAP systemic problem).

    • If the case was pulled from Notice Review and the entity wasn’t corrected, charge the appropriate type (non-systemic accuracy, systemic accuracy, professionalism, etc.,). Notice Review would be charged for not taking the appropriate action in correcting the entity.

  4. For IMF and BMF, if reviewing a current processing year return for entity and the entity does not match the master file, take the following action:

    • Check the attachments and/or signature to verify the entity. If the return information is correct, and the return was transcribed using short entity, then the return was drawn from the Entity Index File. An error would be charged to EIF if short entity were required.

    • If the taxpayer made a mistake in entering their entity, such as: misspelled street, name, only code the Taxpayer if no Operational area had a responsibility to correct. *Example: If the entity were input as "Intermediate (address change)" Error Code (EC) 3 and the street address is incorrect, Data would be charged with an error on the street address. However, on the same case, if the name was incorrect, EIF would be charged an error since only street, city, state, and zip code are input under EC 3.

  5. If you have access to DI then you can also review the history file to see if taxpayer called to update their address. Again, you will have to accept what change was made if it is more current than the address shown on the return. To view the History section, input the TIN on the "Taxpayer lookup" screen and click on "GO" . The "Disclosure" screen will appear. On this screen select "No Contact" for "Identify the Source of the Contact," and "Review/Monitor" for "Identify the Reason for Access." . Next, make the appropriate selection for "Verify Filing Status" . Scroll to the bottom of the screen and click on the "Authorized button" . The "Account Summary" screen will appear. Look to the left of the screen and you will see "Function" . Under Function – select "History" . The "History" screen will display. You can view the details for each of the history items individually or at the same time. To "View Details" for an individual item, click on "View Details" to see the actual narratives left by the person working on the account. To "View Details" for all items, click on the first item displayed. The item will then be highlighted. On the key board, hold the "Control Key" and "Shift Key" and highlight the last item displayed by clicking on the mouse. Now all of the items shown should be highlighted. Click on "View Details" and you will be able to see all of the details at once.

    Note:

    Remember Disclosure information must be answered so the history information can be reviewed. You can print the DI history as back-up to the entity change.

    Note:

    On coding the DCI "for Return" use DI. This will indicate we used DI to verify the entity. This case will be considered with return. Remember to take into account the National Change of Address (NCOA) updates which occur weekly. These updates have unique DLNs. See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for additional information on NCOA. If the update was incorrect due to NCOA, then code WHO Code 28 (Post Office). Most likely these would be considered perfect since the NCOA updated the entity and unless you have supporting documentation no defect can be charged. For additional Information see: IRM 3.24.38, BMF General Instructions, IRM 3.24.37, General Instructions, and IRM 3.24.3, Individual Income Tax Returns

    .

    Note:

    1. The FINALIST program is standardization software used by the United States Postal Service (USPS) to ensure addresses are valid and correct. FINALIST knows if building numbers are valid.
    2. FINALIST is used to ensure the IRS’s outgoing mail, notices, tax packages, etc. comply with the USPS address standards.
    3. An address that is entered into IDRS and does not meet the USPS standards WILL NOT update and/or post with the input address.
    4. The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to thirteen.
    5. FINALIST will also abbreviate street names. However, a list of abbreviations used by FINALIST is not available.
    6. If you see an address that appears to be an abbreviation of the street name or city name, you can research the USPS Zip Code look up screen at http://zip4.usps.com/zip4/. to see if the abbreviation is accepted by the USPS.

  6. For CP49 to verify the entity, pull the no-source document (5147) to determine if the remarks field provides any information as to why the entity was changed. If no remarks, request most current return or TC 014 to verify the address. If address is different than the most current return, use CC IMFOLE for the latest update. If an obvious entity error, code accordingly. If you have the return code with return, otherwise code without return.

  7. For CP211A, the entity cannot be reviewed using the notice. The notice is considered an extension notice and not a filed tax return. In these cases we will verify the filing requirements are correct for the notice and code as with return.

  8. Route cases that require entity corrections to the Entity Team following local procedures.

3.0.275.7.4  (10-01-2012)
Notice Error Rate General Coding Instructions

  1. Refer to the appropriate Submission Processing IRMs for procedural instructions that should have been followed in generating the notice. Only code defects resulting in an incorrect notice when IRM instructions were not followed. See IRM 3.0.275.1.9"Business Results Measures Review Guidelines," for additional information on local procedures.

3.0.275.8  (12-01-2002)
Other Submission Processing Business Results Measures

  1. There are other Submission Processing Business Results Measures that do not involve direct Improvement Team reviews (e.g., Deposit Timeliness, Refund Interest, and Productivity).

3.0.275.8.1  (10-01-2006)
Reports For Deposit Timeliness

  1. Two sets of reports are available for Deposit Timeliness (National and Service Center).

  2. The National Reports are:

    1. Deposit Timeliness Monthly Report (with Adjustments)

    2. Deposit Timeliness - Weighted (Roll up)

  3. The Service Center Reports are:

    1. Deposit Timeliness Monthly Report

    2. Deposit Timeliness Fiscal Year Report

    3. Deposit Timeliness Quarterly Summary Report

  4. Deposit Timeliness National and Service Center Reports provides the Monthly and Cumulative Data for the following: Office, Deposits, Dollars, Lost Opportunity Cost (LOC), Lost Opportunity Cost per Million, Average Lost Opportunity Cost per Transaction and any Comments from the centers.

3.0.275.8.2  (10-01-2011)
Deposit Timeliness Business Measure

  1. The Deposit Timeliness Balanced Measure quantifies the interest the United States Treasury loses if the IRS does not deposit remittances received within one business day "of the IRS Received Date" .

  2. The official definition of Deposit Timeliness is the "lost opportunity cost (interest value) of money received by the IRS but not deposited in the bank by the next day, per $1 million of deposits, using a constant 8% annual interest rate."

  3. The opportunity cost is calculated by multiplying the dollar amount deposited, the number of days between the day after the transaction date and the deposit date, and the daily interest rate (using a constant annual baseline interest rate of 8%). The figure is divided by the cumulative total dollars deposited and is multiplied by $1 million. Beginning in January 2004, weekends and holidays are excluded from determining if the deposit is late. After determining that a deposit was late, the LOC is calculated including intervening weekends and holidays. This is retroactive to the beginning of FY 2004.

  4. The Deposit Timeliness measure encompasses all deposits processed through the Integrated Submission and Remittance Processing (ISRP) transport.

  5. The Improvement Team Analyst will enter the RTR data into the SMART Database by the 1st business day following the end of the month.

  6. Improvement Teams and Functional areas are responsible for analyzing the results of the Deposit Timeliness measure and researching the RTR system to identify untimely deposits. Forward your findings, recommendations, and information about local deposit timeliness improvement projects to the Headquarters Deposit Timeliness analyst each month.

  7. Beginning with fiscal year 2006, all valid adjustments to the Deposit Timeliness measure will be allowed without regard to amount. Sites may submit adjustments, using the distributed spreadsheet, to the HQ measure analyst at the beginning of each month for the preceding month.

  8. No adjustment will be granted as a result of weather related SPC closure or weather related delay in receipts from Lockbox banks, Field Offices or Campus Support.

3.0.275.8.3  (10-01-2008)
Refund Interest Measure

  1. The purpose of the Refund Interest Business Results Measure is to quantify the amount of interest IRS pays on refund returns.

3.0.275.8.3.1  (12-01-2010)
Definition of Refund Interest

  1. The measure is officially defined as the amount of refund interest paid per $1 million of current year IMF and BMF refunds issued in the original settlement cycle.

3.0.275.8.3.1.1  (10-01-2012)
Refund Interest General

  1. The IRS rules governing the payment of credit interest on IMF and BMF returns are:

    • The 45-day rule, IRS section 6611(e), provides for a processing period during which credit interest is limited in certain situations.

    • Interest will be paid on all refunds generated from returns not processed within 45 days of the later of the: return due date (determined without regard to any extension of time for filing the return), return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return), or the date the return was received in processable form..

    • When the 45-day interest-free period is missed, use the following chart to determine the date interest on the refund will begin to accrue.

      Determining the "From" Date
      If the Taxpayer Then Allow Interest From the Later of
      Timely filed (i.e., return received by the original or extended due date) The original due date, the payment date, or the return processable date ( if the return processable date is after the extension date).
      Late filed (i.e., return not received by the original or extended due date) The late return received date, the payment date, or the return processable date.

    • If the IRS initiates an adjustment that results in a refund or credit of an overpayment, interest on the overpayment is computed by subtracting 45 days from the number of days that interest would otherwise be allowed.

    • Prepaid credits (payments made on or before the due date of the return) are deemed paid as of the due date of the return (determined without regard to any extension of time to file) whether the return is timely or late filed.

    • IMF Combat Zone refund returns receive credit interest without regard to the 45-day processing period.

    • The HIRE Act of 2010 added IRC Section 6611(e) (4) changing the 45–day interest-free period to 180 days on overpayment refunds resulting from the tax deducted and withheld under Chapter 3 (withholding of tax on non-resident aliens and foreign corporations).

  2. As described above, credit interest is paid on an original return overpayment when the 45- or 180-day interest free period is missed. This is generally caused by a delay in processing the return, or when full paid or balance due returns become refunds during processing.

  3. Recommendations for improvement should be presented to the functional areas after determining the causes and the impact of the interest paid.


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