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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 6. Data Processing (DP) Tax Adjustments

3.11.6  Data Processing (DP) Tax Adjustments

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3.11.6.1  (01-01-2010)
Submission Processing (SP) Returns and Document Analysis Overview

  1. Internal Revenue Manual (IRM) 3.11.6 covers Form 1040X, CP 08, 09 and CP 27 processing procedures for Integrated Data Retrieval System (IDRS) and Integrated Submission and Remittance Processing (ISRP) input by Submission Processing (SP).

  2. This section provides instructions for:

    • Form 1040X, Amended U.S. Individual Income Tax Return

    • Computer Paragraph (CP) 08, 09 and 27 Notices

  3. The following subsections cover:

    • General Information for Submission Processing Returns and Document Analysis Overview

    • Preliminary Review of Form 1040X

    • Sorting, Routing, and Priority Processing

    • Screening Criteria for Processable Return

    • Forms 1040X processed through ISRP input

    • Processing Forms 1040X Using IDRS for Input of Adjustment

    • Command Codes DUPED and DDBCK

    • Specific IMF Adjustments

    • Correspondence Procedures

3.11.6.1.1  (01-01-2010)
General Form 1040X Information

  1. Beginning in tax year 2009 the IRS will adopt a newly designed Form 1040X. As a result the service will be receiving both old and new amended forms to process. To accommodate both forms the IRM is addressing the procedures for the old as well as the new direction.

  2. An individual taxpayer may file a Form 1040X, Amended US Individual Income Tax Return, to correct Forms 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ. Taxpayers may add, delete, update, or change tax information reported on their original tax return or amounts previously adjusted by the IRS.

  3. When present on Form 1040X, Column A is used to report amounts originally claimed by the taxpayer, amounts adjusted by the IRS (math error on original return), or amounts adjusted from a previously filed Form 1040X for the same tax period.

  4. When present on Form 1040X, Column B, is used to report the amount of change (increase or decrease) for each line the taxpayer is changing. Taxpayers are instructed to show decreases in parenthesis, explain each change in the Explanation of Changes, of the Form 1040X or attached statement, and attach any schedule and/or form related to the change.

  5. The Correct Amount column of the Form 1040X is used to show amended figures or to figure the amounts reported in Columns A and B when these columns are present:

    1. Adding increases in Column B to Column A.

    2. Subtracting decreases in Column B from Column A.

    3. No change, entering the amount from Column A.

  6. Unless otherwise specified, the instructions contained herein are for the Correct Amount column entries on Form 1040X.

  7. The operational instructions in this IRM will determine if the adjustment request can be made in Submission Processing or if it must be routed to another area or function. Returns which can be adjusted in Submission Processing (commonly referred to as "workable " ) are either input on-line using IDRS or sent to ISRP for input.

  8. The general sequence you will follow is:

    1. Determine if route out criteria is met.

    2. Determine if the claim is complete.

    3. Determine if the claim is processable.

    4. Determine if the claim is allowable.

  9. Form 1040X and CP Notices are to be processed within 12 calendar days from the IRS received date (day one) to the date the document is delivered to the CIS (Corresponding Imaging System) Unit (ending day) or input of a TC 29X. See IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

  10. Occasionally multiple forms 1040/A/EZ/X are attached. For example:

    • Two or more returns from the same taxpayer are mailed in the same envelope

    • Two or more family members' returns are mailed by the tax preparer in the same envelope

    • Two or more unrelated returns are mailed by the tax preparer in the same envelope

      Note:

      Detach the returns leaving an action trail on each document, then sort, work or route the returns as appropriate.

      Exception:

      Copies of forms 1040/A/EZ, often notated with As Originally Filed or As Amended, used to clarify the adjustment of a 1040X are not to be detached unless specifically instructed.

3.11.6.1.2  (01-01-2010)
General Instructions

  1. Disaster Returns are to be worked as first priority over all other 1040X cases.

  2. Use an erasable red pen for any editing markings.

  3. As a working trail, you may edit any Transaction Code (TC), Reference Number (RN), or Credit Reference Number (CRN) onto Form 1040X and edit an amount. When the Net Change column is present on Form 1040X, if entries are being edited, underline zero or increase amounts and bracket decrease amounts.

  4. Edit your Tax Examiner (TE) number in the top left margin of Form 1040X or CP 27, or follow any local procedures that ensure the integrity of the batch for routing to Files (e.g. number returns, enter IDRS employee number, and date)

  5. Follow local procedures for routing to other functions. Use either a Form 3210 or attach a "buck slip" , etc.

3.11.6.1.2.1  (01-01-2010)
Incomplete/Illegible Returns

  1. Sometimes a taxpayer may file a blank or partially blank (incomplete) return. Treat Form 1040X as an incomplete return when entries on Lines 1-15 contain:

    1. Amounts that are blank, illegible, incorrect, or can be determined to be misplaced.

    2. Blanks where amounts should have been entered.

      Note:

      If there are any obvious route-outs criteria (e.g. freeze codes, transaction codes, etc.), route accordingly.

  2. If any part of the entity (tax period, name, or TIN) is missing, but can be determined, edit to the appropriate area on the return. If it can not be determined, follow Correspondence Procedures in IRM 3.11.6.2.1 and 3.11.6.2.2

    Note:

    If there is no explanation of the change, and you are unable to determine through attachments and the refund is $500 or more, correspond for an explanation per IRM 3.11.6.9.1. Use either Form 8009, boxes 3 and 7, or a 324C letter, paragraphs A, V, Z.

  3. If the adjustment can be determined, perfect any missing/incorrect entries of the Form 1040X based on taxpayer's explanations, attachments, AND IDRS research.

    1. If a math error is present on IDRS, route or work as appropriate.

    2. If a signature is missing, correspond per IRM 3.11.6.4.1.

  4. If unable to determine the adjustment, route as CIS/AM.

3.11.6.1.2.2  (01-01-2010)
When a Working Trail is Required

  1. Leave a working/action trail in the left margin of Form 1040X when:

    1. You detach a form, schedule, or notice per IRM instruction (i.e., Form 2848, POA, or 8821 to CAF)

    2. You prepare a Presidential Election Campaign Fund (PECF) dummy return

    3. Routing Form 1040X as instructed per local procedures (TC 971, CB/CF, CIS, etc.)

  2. Edit the following on the Form 1040X:

    1. Detached item description – (i.e. Detached Form 2848)

    2. Routing destination

  3. Edit the following on the detached form, schedule, or notice, if the information is not present on the document:

    1. Taxpayer's name

    2. Taxpayer's address

    3. Taxpayer Identification Number (TIN), (e.g., SSN, IRSN, ITIN)

    4. Received Date

    5. Tax Year

    6. Form 1040X

3.11.6.1.3  (01-01-2010)
Blocking Series/Routing to Files

  1. Code and Edit processes Forms 1040X and CP Notice adjustments in a unique blocking series based on the nature of the claim.

    Note:

    If the original return was filed electronically, use the appropriate blocking series and attach an IMFOL print to the front of the claim.

    1. Use blocking series 05 for processable Form 1040X and CP Notices..

      Exception:

      When making adjustments for (b) through (d) below, use the blocking series indicated.

    2. Use blocking series 78 when setting a math error (IRM 3.11.6.6.6).

      Note:

      BS 78 will generate a G-freeze and defer action for 12 cycles on MF. This also sets the appeal rights indicator and is used as a reminder to include a stuffer with the math error.

    3. Use blocking series 98 when disallowing a formal claim.

    4. Use blocking series 18 when processing a loose Form 8606 (IRM 3.11.6.8.1.3).

    5. For CP disallowance:
      - Use blocking series 99 if the original return was paper filed
      - Use blocking series 98 if the original return was filed electronically. Also attach an IMFOLR print.

    6. For a partially disallowed formal claim:
      - Use blocking series 00 if the original return was paper filed.
      - Use blocking series 18 if the original return was filed electronically. Also attach an IMFOLR print.

    7. For processing Form 8606:
      - Use blocking series 05 for a loose 8606.
      - Use blocking series 18 if Form 1040X includes Form 8606.

  2. If a taxpayer files an amended Form 1040 series, Individual Income Tax Return, in lieu of a Form 1040X, you must determine if it is an original, duplicate, or amended return. If an original return, route to Receipt and Control for processing under the correct Program Code. Refer to IRM 3.11.6.4.4.3 for duplicate or "amended" procedures.

  3. The Control Unit is charged with the responsibility of associating IDRS Source Documents with their related IDRS Transaction Records (ADJ 54 adjustments) that were input on taxpayer accounts. It is vital for the unit to receive source documents in a timely manner. Follow local procedures for routing the source documents to Files within the guidelines in IRM 3.5.61, Files and Management Services

3.11.6.1.4  (01-01-2010)
Related IRMs

  1. Additional information regarding amended returns may be found in the following IRMs.

    • IRM 3.10.72, Extracting, Sorting, and Numbering

    • IRM 3.11.3, Individual Income Tax Returns

    • IRM 3.24.3, Individual Income Tax Returns ISRP System

    • IRM 21, Customer Account Services

    • IRM 2.4.1 IDRS Terminal Input

  2. The operational guidance in this IRM take precedence over any conflicting operational procedures in other IRMs. Contact your manager if you have any questions about operational guidance and for clarification between operational issues and statutory requirements.

  3. Document 6209, IRS Processing Codes and Information, SERP Alerts, Tax Form and Instructions (accessible through the IRS Home Page), and Publication 17 are valuable resources for obtaining additional information and resolving questions.

3.11.6.1.5  (01-01-2010)
Inquiries from IRS Employees

  1. IRS employees are taxpayers and are entitled to the same security measures to their tax account information in the same manner as other taxpayers who call, write, or visit us.

  2. There are special procedures that you must follow to protect the "taxpayer employee" , as well as to protect yourself. If you receive or initiate telephone contact, or are assigned a case of an IRS employee, take the following actions:

    1. If you do not know the employee, work the case and complete Form 11377.

      Note:

      Completing the Form 11377, Taxpayer Data Access, is voluntary and should be done at the discretion of the employee. The purpose of the form is to document the reason(s) tax return and/or information was accessed by you when the taxpayers case was not assigned directly to you.

    2. If you know the employee, refer the case to your manager.

  3. If your unit has a designated employee who handles all cases from IRS employees, refer these cases to that employee.

  4. IRS Employees can be identified from the IRS-EMP-CD on TXMOD.

3.11.6.2  (01-01-2010)
Preliminary Review of Form 1040X

  1. Before an adjustment can be input or routed to another function, check the return for the following elements:

    • Taxpayer Identification Number

    • Tax Period

    • Received Date

    • PECF Requests

    • Discovered Remittance

3.11.6.2.1  (01-01-2010)
Taxpayer Identification Number

  1. In order to process a return, you must have the TIN. The TIN is the Social Security Number (SSN) or IRS Individual Taxpayer Identification Number (ITIN) for IMF accounts.

  2. If the Primary TIN (P-TIN) is missing, incomplete, or illegible, research IDRS (Command Code NAMEI or NAMES), attached correspondence, cross reference with the spouse (Command Code INOLE) or by phone call (if possible). If you have exhausted all resources and are still unable to determine the P-TIN, correspond per IRM 3.11.6.9.1 using either Form 8009, box 17 (do not input TC 971 with AC 270) for zero balance and net refund returns. Refer balance due returns as CIS/AM.

    Note:

    If found edit to the appropriate field on the Form 1040X.

  3. If the taxpayer files an amended return and the account is set up on the invalid segment of Master File (which requires an asterisk after the TIN (000-00-0000*)), refer as CIS/AM.

3.11.6.2.2  (01-01-2010)
Tax Period

  1. Amended returns must be for a specific tax period. When the tax period is missing, and you cannot determine from return information or attachments, research IDRS (Command Code IMFOL or RTVUE) for matching tax data.

  2. If the tax period is found, edit the tax period on the front of the return above the Entity section in YYMM format, even when routing document to another function.

  3. If you cannot determine the tax period through IDRS research, correspond unless return is being routed to another function. Correspond per IRM 3.11.6.9.1 using Form 8009, box 16 for zero balance and net refund returns. Refer balance due returns to CIS/AM.

    Note:

    Do not input TC 971 and AC 270.

  4. If the taxpayer tries to submit an amended return for multiple tax periods on a single amended return, send the return back to the taxpayer. Use Form 8009 to inform the taxpayer they must submit a separate amended return for each specific tax period that they are trying to amend.

3.11.6.2.3  (01-01-2010)
Received Date

  1. Every Form 1040X should be stamped with a processing center Received Date stamp. If the Received Date stamp is missing, or illegible, but is found elsewhere in the return packet, edit the date to the front of the return in MMDDYY format in the blank space above Line 1.

    Note:

    Other areas within the IRS may date stamp the return to indicate when the return arrived in that area (e.g. Statute, Adjustments, etc.), do not use that date stamp as the Received Date.

  2. Beginning April 23, 2010, honor received dates that are edited in green ink on current year 1040X's received with payments as the return received date to be used for processing.

  3. If the Received Date stamp is not found, edit the Received Date based on the order of precedence below in the same format and location as stated in (1) above.

    1. Latest postmark or designated private delivery service mark on the envelope

    2. IRS field office date stamp

    3. IRS field office with a handwritten Received Date on a secured return. Must have "received" and a date with a signature and title of the authoring employee.

    4. Signature Date (only if the return was signed in the current year)

    5. Current Date

  4. Use the following chart when there are multiple received dates stamped and/or edited on the return:

    IF AND THEN
    Inputting an adjustment or routing a return Refund or Net Zero Return Circle all but the latest received date.

    Example:

    The original circled received date is March 5, 2010, and the latest received date on reply is April 4, 2010. Edit 040410 as the received date. Circle March 5, 2010.

    Inputting an adjustment or routing a return Balance Due Return Circle all but the earliest received date.

    Example:

    One received date is March 5, 2010, the other received date is April 4, 2010. Circle April 4, 2010.
    Corresponding on a Refund or Net Zero Return Circle all received dates.
    Corresponding on a Balance Due Return Circle all but the earliest received dates.

3.11.6.2.4  (01-01-2010)
Processing PECF Requests

  1. The taxpayer may request that $3 go to the Presidential Election Campaign Fund (PECF) by checking one or both boxes on Page 2 of Form 1040X.

  2. A PECF request can only be processed for tax periods 2008 and 2009; and if there is a tax change on Line 10 of Form 1040X.

    Exception:

    Do not process a PECF request on any return that is being routed out.

  3. If the return meets correspondence criteria, do NOTprocess the PECF request. Correspond as required.

  4. To process a PECF request, edit the following items to a blank Form 1040X as a "Dummy PECF" return. (See Figure 3.11.6–1 Preparing A Dummy PECF)

    1. "Dummy PECF" in the top margin

    2. The tax period if 2008

    3. The Primary name control

    4. Primary SSN and Secondary SSN

    5. Filing Status Code to the left of the box on Line A

    6. "5" to the right of Line B, if one PECF box is checked.

    7. "6" to the right of Line B, if two PECF boxes are checked.

    8. The received date in MMDDYY format in the center portion

    9. "O/S" on the signature line to indicate the original Form 1040X was signed

    10. Your employee number/stamp in the upper left margin (if required by local procedure)

  5. Edit "PECF Prep" in the left margin of Form 1040X then continue processing the return.

  6. Route "Dummy PECF" to ISRP per local procedures.

    Figure 3.11.6-1a
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    Preparing A Dummy PECF

    Figure 3.11.6-1b
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3.11.6.2.5  (01-01-2010)
Discovered Remittances

  1. A discovered remittance is any form of payment (cash, check, money order, stamp, jewelry, etc.) other than credit card that the taxpayer may send in.

    Note:

    When a US Treasury check is returned to the IRS, it is not considered a discovered remittance. Edit "Void" onto the check if it does not already have it. Forward the check and return to the Refund Inquiry unit.

  2. When a remittance is discovered, immediately turn the remittance over to your Manager or Lead.

    Note:

    If your unit has a designated employee who handles all discovered remittances, refer to the designated employee.

    1. If a Form 1040-V, Payment Voucher is attached, only turn in the voucher and the remittance. Edit your TE number on the voucher and continue processing the return.

    2. If a payment voucher is not attached, turn in the return with the remittance.

    3. If a "loose" remittance is discovered (not associated with a return), complete Form 3244. Turn in the remittance with Form 3244 and continue processing the return.

  3. Edit the Received Date if missing onto either the Discovered Remittance, Form 1040-V, or the return.

  4. If the taxpayer sends in a credit card or credit card information, refer the case to the Manager or Lead for a formal 3956C disallowance letter to be issued.

  5. For additional information on discovered remittances, see IRM 3.8.46, Discovered Remittances.

3.11.6.3  (01-01-2010)
Sorting, Routing, and Priority Processing

  1. IDRS Pre-Screen all documents year-round for "route-out " criteria by either manually reviewing the return for attachments, issues, correspondence required, Statute, or research IDRS for transactions that require routing to another function. Sorting into current and prior years is not necessary. Keep all related tax years together if possible. Notate on Form 1040X any action taken, such as routing to Statute, detached Form 2848 to Centralized Authorization File (CAF), etc. .

  2. Identify all possible route out criteria during your IDRS Pre-screen process, then route to the highest priority as stated in paragraph 3 below.

    Note:

    It is not necessary to research IDRS for a higher routing priority.

  3. The priority order for routing is as follows:

    1. Carryback or Carryforward Claims (CIS/AM)

    2. Statute

    3. Fraud Detection Center

    4. Category A (CAT A)

    5. Underreporter

    6. Adjustment Function Criteria (CIS/AM)

    7. Open cases (for tax year that you are working)

    8. All other claims

      Note:

      If a document has an indication of a Disaster return, see IRM 3.11.6.3.14, Disaster Claims.

  4. See IRM 3.11.6.4.3 for TC 971 and Action Codes and routing destination for specific items. Leave a working trail in the left margin indicating the destination or detached item as an audit/working trail, such as "To Statute" , "Form 2848 detached" , etc. See IRM 3.11.6.1.2.2.

  5. See IRM 3.11.6.2.4 for editing instructions for ISRP input of "Dummy PECF" instructions. Notate the correct Program Code and Blocking Series for Batching and Numbering function.

  6. If local procedures are to route certain "open cases" , (e.g. Status "S" , "A" , "M" , etc.), use a "Buck Slip" , local routing form, or Form 5102 to do a history follow-up, ACTON History item, etc. in lieu of a TC 971, refer to IRM 3.11.6.4.3(2).

  7. Always "Hand carry" statute returns to the area following local procedures.

  8. Follow IDRS Pre-screen procedures for sorting and routing returns or correspondence to another function. For Carryback/Carryforward claims, Disaster Claims, Injured Spouse, Innocent Spouse, Statute returns, etc., follow local agreements for routing to CIS/AM (e.g. if manual input of TC 971 and additional Action Codes, Category Codes, etc. is required).

3.11.6.3.1  (01-01-2010)
Carryback/Carryforward

  1. Carryback/Carryforward claims are when the taxpayer has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment . The taxpayer can file an application or claim for that adjustment or refund. The tax year the loss occurred is the loss year (carryback). The tax year the loss is applied to, is the gain year (carryforward).

  2. All carryback/carryforward claims are to be expedited to AM. Follow any local procedures for separating carryback/carryforward claims from other CIS/AM issues that are routed through CIS.

  3. Do not treat the following claims as Carryback/Carryforward claims:

    1. Carryover of an IRA

    2. Schedule A with an entry on Line 18 "Carryover from prior year" for Gifts to Charity

    3. Schedule D loss that exceeds the $3,000 loss limit. Taxpayers are entitled to "roll-over" or "Carryforward " any Schedule D loss that is greater than $3,000. Sometimes a Form 1040X is submitted showing no changes to the figures, however the taxpayer provides an explanation describing they are claiming additional Schedule D loss. Taxpayers may also claim a Schedule D loss that had exceeded $3,000 from a prior year. Process these types of cases with RC 013.

  4. Indications that a taxpayer is trying to take the loss are as follows (See Figure 3.11.6-2a/b):

    1. The carryback box of Form 1040X is checked.

    2. Taxpayer notates "NOL" or "Carryback " or "Carryforward" or "Carryover " on the return in the Form 1040X .Explanation of Changes..

    3. Schedules K-1 from a partnership, S corporation, estate, trust, or similar wording is attached for either:
      • The year of the loss
      • Credit that contributed to the loss
      • Credit that is carryback

    4. Form 1045 and/or supporting schedule(s), (Schedule A-NOL, Schedule B-NOL Carryover, or Schedule D) is attached.

      Exception:

      Schedule D attached with a loss that exceeds the $3,000 limit. See 3.11.6.3.1(3)c .

    5. One of the following forms is attached :

      Note:

      Verify no carryback/carryforward issue is present before processing.


      • Form 3468, with an entry on Line 17
      • Form 3800 with an entry on Line 6 or 7
      • Form 5884, with an entry on line 8 or 9
      • Form 6781,
      • Form 6251 with an indication of net operating loss, entry on Line10 or 27 for TY 2007, Line 11 or 28 for TY 2008, Line 11 or 12 for TY 2009
      •Form 8396 with an indication of carryback or carryforward
      •Form 8586, with an entry on Line 16 or 17
      •Form 8801
      •Form 8835, with an entry on Line 34 or 35
      •Form 8839, with an indication of carryback or carryforward
      •Form 8846, with an entry on Line 10 or 11

    6. Form 1040 with a Schedule A and/or D, if applicable, for the year other than the year of the Form 1040X is being used as support for the loss. Form 1040 may have "Attachment to Form 1040X-Copy Only-Do Not Process" written in the top margin.

    Figure 3.11.6-2a
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    Figure 3.11.6-2b
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    Figure 3.11.6-2c
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  5. If unable to determine the difference between (3) (c) from (4) (f) take it to the work leader to make the determination.

3.11.6.3.2  (01-01-2010)
Statute Cases

  1. The difference between Assessment Statute Expiration Date (ASED) and Refund Statute Expiration Date (RSED).

    1. An ASED is the Assessment Statute Expiration date on which the time allowed for assessing tax expires. The ASED expires 3 years from the due date or received date of the original return, whichever is later.

    2. An RSED is the Refund Statute Expiration Date. When the statute of limitations for a refund expires, the IRS can no longer allow a claim for refund by the taxpayer. The RSED expires 3 years from the original due date or 2 years from the date the tax was paid, whichever is later.

      Exception:

      The statute period has been extended for some military reservist. See Military Family Relief Act, IRM 3.11.6.8.1.2 for processing instructions.

    Figure 3.11.6-3a
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    Figure 3.11.6-3b
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  2. Check the postmark date on the envelope when considering the timeliness of a claim. Route returns received after expiration of the statute to the appropriate area for disallowance. Each service center specifies the appropriate area, either the Statute function or the Accounts Management Adjustment function.

  3. Follow the procedures below:

    IF AND THEN
    There is a total tax increase, or refundable credit decrease The case is within 90 days of the ASED Route to the Statute area.
    • Keep all related tax years together.
    • Input a TC 971 with AC 014 for each return being routed
    There is a net zero tax change on line 10 The case is within 90 days of the ASED Continue to process the return.
    There is a total tax decrease or refundable credit increase of ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more The case is within 60 days of the ASED Treat as CAT A return.
    There is a total tax decrease less than ≡ ≡ ≡ The 1040X was received timely Continue processing the return. Use Priority Code 9 if the day the adjustment will be input into IDRS is within 90 days of the ASED.
    The returns meets CB/CF criteria The case is within 60 days of the ASED 1. Prepare Form 3210 and notate "CB/CF/Statute Imminent" in the remarks area.
    2. Place an ACTON history item "Statute Imminent or SI" on TXMOD.
    3. Expedite to CIS/AM.
    Statute year 1040X , an original Form 1040 and an "As Amended" Form 1040 are attached No TC 150 posted and Correct Amount figures match the "As Amended" Form 1040 Follow the procedures in IRM 3.11.6.4.4.1(6) except route to Statute Unit for Clearance
    Statute year 1040X No TC 150 posted
    Send to Statute Unit for clearance.
    You are making an adjustment to the account with a TC 290 .00 and adjusting credit reference numbers that will not result in a credit or tax change.

    Example:

    Changing SE tax from primary to secondary taxpayer. No tax change and no credit change.

    		 The ASED or extended Return Due Date (RDD) is less than 60 days after the current 23C date or has expired. Process using blocking series 05. Do not use priority code 9.
    Total tax decrease and/or refundable credit increase, resulting in a refund RSED is expired or within 60 days prior to the RSED date Route to CIS/AM.

    Note:

    If inputting a timely received return after April 15th, input an "S" in the Override Indicator field and the received date also in the RFSCDT field.

  4. If a Form 1040 is received in the 1040X unit and the Form 1040 is stamped "Statute Cleared" , research IDRS for a TC 150:

    1. If no TC 150 has posted, route to Receipt and Control to be processed as an original prior year return.

    2. If a TC 150 has posted, route to CIS/AM.

3.11.6.3.3  (01-01-2010)
CI Fraud Detection Center

  1. Route the following types of cases to the Criminal Investigation (CI) Fraud Detection Center (FDC):

    • Refund Schemes/suspicion of refund crime/returns prepared by return preparers showing unusual patterns regardless of the refund amount claimed/refunds based solely on refundable credits.

    • IDRS shows a "Z" freeze on ENMOD/TXMOD, or there is a pending/posted TC 914 or TC 916 on TXMOD, or TC 918 on ENMOD.

  2. Route to the CI Fraud Detection Center any amended return (Form 1040 series) showing an additional refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , based on only one Form W–2, W-2G, or 1099 attached, and containing one of the following conditions:

    • Form W-2, W-2G, or 1099 is handwritten

    • The wages, withholding, name, or TIN are altered on Form W–2, W-2G, or 1099

    • A substitute Form W-2, W-2G, or 1099 is attached

    • TIN on Form W-2, W-2G, or 1099 does not match TIN on Form 1040X

  3. Follow local procedures for routing to CI FDC, or use Form 3210. Do not input a TC 971. Place a history item on ACTON "To CI FDC" on TXMOD.

3.11.6.3.4  (01-01-2010)
Examination Category A/Technical Assistance Requests

  1. Check all tax decreases claims or credit increase where the net adjustment is a credit which may be refunded, applied to next year's estimated tax, offset, or absorbed by the module balance.

    1. Limit the use of CAT A to only the specified issues.

    2. You do not have to sort CAT A and CIS/AM, since all will be routed to CIS.

    3. Do not apply CAT A criteria to Combat Zone returns, only apply CIS/AM to Combat Zone returns. (Refer to 3.11.6.3.16, )

    4. For Form 5405 CAT A criteria refer to IRM 3.11.6.8.14.4

    5. For CC DDBCK CAT A criteria refer to IRM 3.11.6.7.2

  2. Unless otherwise specified, the dollar amounts cited refer to the amount of the total tax decrease or refundable credit increase. Some issues are both CIS/AM and CAT A criteria, but have different dollar tolerances. (Refer to Exhibit 3.11.6-3, Screening Guide).

  3. Refer Forms 1040X to the Lead, Manager, and Planning Analysis Analyst, if necessary, for any of the following reasons, provided the case does not meet Cat A criteria and is not open in AIMS:

    • There is a technical issue

    • There is a questionable issue

    • You need a legal interpretation

  4. If direction provided by the Lead, Manager, or Planning Analysis Analyst is to forward the case to Examination Classification function, use a referral (e.g. Form 3210, Document Transmittal). The Examination Classification function should respond within 3 days. Do not input TC 971. Place a history item on ACTON "To Exam" on TXMOD.

    1. Clearly state the question or problem.

    2. List the TIN, MFT, tax period, and name control.

    3. Attach any pertinent background information or research.

    4. Obtain your manager's signature on the Technical Assistance Request.

  5. CAT A criteria applies to net refund returns. Review all superseding returns for CAT A criteria. A superseding return is an amended return for the current year, received before the return due date.

3.11.6.3.5  (01-01-2010)
Underreporter Function Cases

  1. Check TXMOD to see if there is a TC 922 on the module. If there is, determine the status of an Underreporter case and its location by the last process code shown beside the TC 922. Underreporter Process Codes are found in Chapter 8, Section 19 of Document 6209, IRS Processing Codes and Information. Use the chart displayed below to determine if the Form 1040X should be routed or processed.

    If: Then:
    TC 922 and no process code is shown Underreporter does not have a case. Continue to process the Form 1040X
    TC 922 and the only process code is 01, 03, 06 or 09 1. The Automated Underreporter (AUR) issue or case is pending, and the taxpayer may or may not receive a notice. Do not refer the case to AUR.
    2. Continue to process the Form 1040X.
    TC 922 with process codes 03, 16 and tax year is 2007 1. This is not an AUR case. This designates a soft notice, CP 2057. Do not refer the case to AUR
    2. Continue to process the Form 1040X.
    TC 922 and the last process code is 11-14, 16, 17, 21-24, or 26-29 1. The AUR issue or case was closed and taxpayer will not receive a notice. Do not refer the case to AUR.
    2. Continue to process the Form 1040X.
    TC 922 and the last process code is 15 1. The AUR case is closed. The taxpayer may or may not have received a notice. Do not refer the case to AUR.
    2. Continue to process the Form 1040X.
    TC 922 and the last process code is 18 1. The AUR issue or case was closed, and taxpayer will not receive a notice. Do not refer the case to AUR.
    2. Refer to local KITA Coordinator.
    TC 922 and the last process code is 25, 46 or 65 1. The AUR issue or case was closed and transferred to CI. The taxpayer may or may not have received a notice. Do not refer the case to AUR.
    2. Continue to process the Form 1040X unless there is a Z freeze on the module. If Z freeze is present, refer to FDC.
    TC 922 and the last process code is 35, 36, 38, 44, 62–64, 66, 72, 80 or 82-86 1. The AUR issue or case was closed, and the case was transferred to the Exam Function (PC 80 the case were transferred to Appeals)Do not refer the case to AUR
    2. Refer as CIS/AM.

    Exception:

    If -L freeze is present, refer IRM 3.11.6.6.9.
    TC 922 and the last process code is 30, 34, 54, 55, 57–60, 75,77–79,81, 95,97–99 1. Case is open in Underreporter.
    2. Route correspondence or Form 1040X to the campus where case is assigned. First two digits of the TC 922 DLN identifies where the case is assigned.

    Note:

    Input TC 971 AC 015 when routing the Form 1040X.


    3. Refer to Document 6209, IRS Processing Codes and Information, Section 4, for location codes.
    TC 922 and the last process code is: 39, 47, 48, 51, 52, 69, 70, 71, 73, 74, 89, 91, 92, 93, or 96 1. The AUR issue or case was closed with no change to the tax liability and/or refundable credits. Do not refer the case to AUR.
    2. Continue to process the Form 1040X.
    TC 922 and the last process code is 20, 53, 67, 68, 87, 88, 90, or 94 1. The AUR issue or case was closed.
    2. If the claim involves an AUR issue, route to CIS/AM.
    3. If you are unable to determine if the claim is related to AUR issue, due to lack of information attached, continue to process the Form 1040X.
    TC 922 with process codes 07, 19, 49 and tax year is 2008 1. This is not an AUR case. This designates a soft notice, CP 1947. Do not refer the case to AUR. 2. Continue to process the Form 1040X.

3.11.6.3.6  (01-01-2010)
Accounts Management Adjustment Function Cases

  1. Cases are referred to Accounts Management based on the issue, the dollar tolerance, computer program capabilities (e.g. Blocking Series), and other various reasons. Refer to the specific IRM instruction or Exhibit 3.11.6-3, Screening Guide. Some of the issues that are routed to AM as AFC (Adjustment Function Criteria) are also issues that are referred to EXAM (CAT A), but both will be routed to CIS, CAT A will have a larger dollar criteria.

  2. Route all AFC returns to CIS to be scanned. Follow any local procedure for separating the "Carryback/Carryforward" , "Disaster Claims" , etc. that require special handling.

  3. Some claims require a Manual Refund and will be routed to Accounts Management. See IRM 3.11.6.6.3.

3.11.6.3.7  (01-01-2010)
Taxpayer Advocate Service Cases (TAS)

  1. When a taxpayer asks to be referred to TAS or the taxpayer meets TAS criteria (listed below), refer the case to the unit manager. Review all attachments for taxpayer notations/correspondence to determine whether the taxpayer meets TAS case criteria or requests TAS assistance.

    • Taxpayer is experiencing economic harm or is about to suffer economic harm .

    • The taxpayer is facing an immediate threat of adverse action.

    • The taxpayer will incur significant costs, if relief is not granted (including fees for professional representation)

    • The taxpayer will suffer irreparable injury to, or long term adverse impact if relief is not granted.

    • The taxpayer has experienced a delay of more than 30 calendar days to resolve a tax account problem.

    • The taxpayer has not received a response or resolution to their problem or inquiry by the date promised.

    • A system(s) or procedure(s) has either failed to operate as intended or failed to resolve the taxpayers problem or dispute within the IRS.

  2. If the taxpayer's issue cannot be completely resolved within 24 hours, but steps are taken to begin resolving the taxpayers issues within 24 hours, then do not forward Form 911 unless the taxpayer asks to be referred to TAS. The unit manager will ensure that a Form 911, Application for Taxpayer Advocate Assistance Order (ATAO), is timely forwarded to the local TAS office when necessary. (For additional information see IRM 13.1.7.4)

3.11.6.3.8  (01-01-2010)
Identifying Frivolous Claims

  1. The IRS is faced with a growing number of individuals who file frivolous tax returns based upon tax avoidance arguments that are not supported by law. Internal Revenue Code (IRC) Section 6702(a) provides for the assessment of penalties for filing frivolous tax returns.

  2. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by both individuals and businesses are included, but are not limited to, a list in Exhibit 3.11.6-4, Frivolous Claims.

  3. Route any "suspicious" return to the designated boxes in Submission Processing. The same boxes can be used for original returns, as well as claims (e.g. Forms 1040X) identified as "frivolous claims" , or follow the most efficient local procedure. The Frivolous Return Programmer (FRP) Coordinator will review any return which the taxpayer:

    1. Argues for any reason for filing a tax return or the paying tax.

    2. Uses one of the frivolous arguments or statements in Exhibit 3.11.6-4, Frivolous Claims.

    3. Marks out or alters in any manner, the penalty or perjury statement (i.e. the jurat) in the signature area.

    4. Input TC 971 with Action Code 013. Enter "Sent to FRP" in the remarks area.

  4. If a non-frivolous claim is received and CC TXMOD shows an open control base to an employee in the FRP (Unit Numbers: 04608, 04691, 04692, 04693, 04694, 04695, or 04696), route to FRP.

3.11.6.3.9  (01-01-2010)
International Returns

  1. Route all International forms attached to Form 1040X to CIS/AM.

    Note:

    A list of the International claims is included in Exhibit 3.11.6-5, PSPC International Returns. Common indicators of claims or forms to be routed are Foreign Addresses and Dual Status.

  2. Do not process any Form 1040X if all the Forms W-2, and Forms 1099 attached are from the Virgin Islands (regardless of the address). Pull these returns and transship to the following address:
    Virgin Islands Bureau of Internal Revenue
    9601 Estate Thomas
    Charlotte Amalle
    St. Thomas, U.S. Virgin Islands 00802

  3. Route to CIS/AM if dual status is indicated by the following conditions on an "amended" Form 1040:

    Form 1040 Revision is: Filing Status Line is checked and Line is blank or zero
    2006 and subsequent Other than 3 39b 40

  4. If a Form W-7, Application for IRS Individual Taxpayer Identification Number is attached to the Form 1040X, or the taxpayer requests additional information in order to complete processing Forms W-7, route to the following address:
    Austin Submission Processing Campus
    ITIN Operation
    P.O. Box 149342
    Austin, TX 78714–9342

  5. If a Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions (ATIN) is attached to a Form 1040X, route both to the following address:
    Austin Submission Processing Campus
    ATIN Unit
    P.O. Box 934 -- Stop 6182
    Austin, TX 78767

  6. Do not True Dupe International returns.

3.11.6.3.10  (01-01-2010)
Killed in Terrorist Action (KITA)

  1. Route all claims identified as "Killed in Terrorist Action (KITA)" , "Killed in Action (KIA)" to the KITA Coordinator in Accounts Management for processing.

    Note:

    A list of current KITA/KIA Coordinators can be found at the SERP homepage under the "Who/Where" tab. Do not input a TC 971. Place an ACTON history item "TO KITA" on TXMOD.

  2. If "KITA" is indicated on TXMOD (upper right corner on first line), route to KITA Coordinator.

3.11.6.3.11  (01-01-2010)
Collection Function Cases

  1. The following should be detached and routed to the Collection Function if attached to the Form 1040X. Continue processing the amended return.

    1. Form 9465, Installment Agreement Request, or a written request for an Installment Agreement located in the Form 1040X, Explanation of Changes, or a separate attachment. Detach any Installment Agreement request and route to Collection as soon as you identify it, even if you suspend the Balance Due return for correspondence.

    2. CP 503/504, Taxpayer Notification of Federal Tax Not Received

    3. CP 523, Past Due Payment Default Notice

      Note:

      Verify that the taxpayer's name, TIN, and tax period are present on any detached item; perfect as necessary.

  2. Route all Automated Substitute For Return (ASFR) to the Collection Function. The most distinctive way to identify an ASFR account is the TC 150 for .00 with an "SFR" literal to the right of the Document Locator Number (DLN) on TXMOD or the " SUBST4" on IMFOLI "Vestigial: Assessed Posted Return" column.

  3. Input TC 971/AC 012 only when sending the entire return to Collection.

  4. If Letter 1058, Notice of Intent to Levy (Final Notice), is attached to Form 1040X, route the correspondence (e.g. request for payment plan, "can’t pay" , "won’t pay" , or "will pay later" , etc.) to Automated Collection System (ACS) as follows:

    If And Then
    IMFOLTXMOD shows the case is in Status 22 or 24 The IRS address is on the top of the letter
    1. Detach the correspondence.
    2. Input TC 470, no closing code using REQ77.
    3. Leave a working trail on the correspondence and the Form 1040X. See IRM 3.11.6.1.2.2
    4. Route the correspondence to the IRS address on the top of the letter.
    5. Continue processing Form 1040X.
    TXMOD shows the case is in Status 22 or 24 The IRS address is not on the top of the letter
    1. Research the appropriate ACS Support Site on SERP (http://serp.enterprise.irs.gov) under the Who/Where tab, select the link to ACS Support Liaison.

    Note:

    The BOD Code (W&I or SB/SE) will be needed to select the appropriate link.


    2. Detach the correspondence.
    3. Input TC 470, no closing code, using REQ77.
    4. Leave a working trail on the correspondence and the Form 1040X. See IRM 3.11.6.1.2.2
    5. Mail the correspondence to the ACS Correspondence Address indicated on SERP.
    6. Continue processing Form 1040X.
    TXMOD shows the case is in Status 26 The last four digits of the Collection-Asgmt>field is 8000 (xxx8000),

    Note:

    The Collection-Asgmt>field is located at the top right hand side of TXMOD.

    		 Route the entire package to Compliance Services Collection Operation (CSCO)
    TXMOD shows the case is in Status 26, The last four digits of the Collection-Asgmt>field is NOT 8000,
    1. Research the appropriate Revenue Officer Group office address on SERP (http://serp.enterprise.irs.gov) under the " Who/Where" tab, select the link RO by TSIGN/ZIP/STATE.

    2. Input TC 470, no closing code, using REQ77.
    3. Input TC 971 AC 012 for audit trail purposes to show where claim was sent.
    4. Route the entire case to the address obtained from SERP.

  5. Adjustment procedures when a -Y freeze is present on the module:

    1. If there is a unreversed TC 480 (OIC pending) alone on the module normal processing procedures should be followed as there is no prohibition on making adjustments to the module.

    2. If there is a unreversed TC 480 and TC 780 (accepted OIC), refer the case to the appropriate campus based on the Monitoring Offer in Compromise (MOIC) Compliance Campus Locations for Offers in Compromise. See the Offer-In Compromise (OIC) Compliance Campus Locations for Back-End, located on SERP under the Who/Where tab, to determine the appropriate campus site.

  6. If unable to determine the correct adjustment, route the entire package to CIS/AM.

3.11.6.3.12  (01-01-2010)
Innocent Spouse (Form 8857)

  1. Innocent spouse/joint and several liability relief claims and Forms 8857, Request for Innocent Spouse Relief, are centralized at Covington, KY. Route innocent spouse claims on Forms 8857, or Form 1040X referencing innocent spouse (with or without Form 8857 attached) as follows:

    If Then
    The only issue is innocent spouse/joint and several liability relief and there is no adjustment to be made to the account (e.g."True Duplicate" ) 1.Photocopy the Form 1040X. Edit/Stamp "Copy - Do Not Process" across the top of the photocopy. Input TC 470 (using REQ77) for all tax periods listed on the Form 8857. Include closing code 90 UNLESS the account is in status 26. To determine the status, refer to the fifth line on TXMOD " SC-STS>" . On those accounts showing status 26, input TC 470 with no closing code.
    2. Input TC 971 with action code 065 for all tax periods listed on the Form 8857 .
    3. Notate TC 971/470 and appropriate closing code and the date in the upper left margin of Form 1040X.
    4. Mail Form 8857/Form 1040X to (must be mailed within 10 business days):
    IRS
    Attn: CCISO
    Stop 840F
    210 W. Rivercenter Blvd
    Covington, KY 41011
    Form 1040X is filed and involves both the innocent spouse issue AND another separate issue(s) that requires an adjustment to the account 1. Photocopy the Form 1040X. Edit/stamp "Copy - Do Not Process" across the top of the photocopy.
    2. Detach Form 8857 and attach a copy of Form 1040X to the front of Form 8857. If Form 8857 is not attached, notate "No Form 8857 Received" on the copy of Form 1040X.
    3. Input the adjustment(s).
    4. Follow 1 through 4 in the preceding IF/THEN statement. Mail Form 8857 with the photocopy of the Form 1040X.

3.11.6.3.13  (01-01-2010)
Injured Spouse Allocation (Form 8379)

  1. If the filer indicates they are an "Injured Spouse" or the filer attaches a copy of Form 8379, route as CIS/AM. Input TC 971 and Action Codes 071 and follow local procedure for routing to AM or CIS.

  2. Do not confuse Injured Spouse and Innocent Spouse although both claims will be "routed out" .

3.11.6.3.14  (01-01-2010)
Disaster Claims

  1. Taxpayers who live in an area for which the President issues a "Declaration of Emergency or Major disaster" may file disaster claims. Taxpayers are instructed to notate "Disaster Claim" on the top of Form 1040X. The IRS may place a -O/-S freeze on the module for the zip codes of the affected areas to indicate the taxpayer resides in a disaster area.

    Note:

    The names and locations of the designated Disaster areas are posted on SERP under the "Who/Where" tab, then the "Disaster Declarations/FEMA " link.

  2. Returns identified as "Disaster" , "Hurricane" , "Hurricane Katrina" , "Hurricane Rita" , "Hurricane Wilma" , or FEMA 1699, will be received as separate expedite batches. Hurricanes Katrina, Rita and Wilma, or FEMA 1699 disasters will be received separately from other Disasters and need to remain separate. The batches should be worked as first priority.

  3. Taxpayers who cite Publ 109-7 Proper Tax Treatment of Certain Disaster Mitigation Payments enacted on April 15, 2005, for grant payments under the Flood Mitigation Assistance Program (FMA), the Pre-Disaster Mitigation Program (PDM), or the Hazard Mitigation Grant Program (HMGP) which are grants used to elevate structures located on flood-prone properties owned by individuals and business exempt from tax.

    Note:

    This is sometimes referred to as HR-1134.

    Taxpayers who paid taxes on these payments are eligible to claim a refund. Process these returns using RC 032

3.11.6.3.14.1  (01-01-2010)
Disaster Expedite

  1. All documents that meet the specified criteria to be routed or forwarded to another function to work (i.e. Cat A, Statutes, Underreporter, CIS/AM, etc.) need to remain separate for each area under a routing sheet indicating "Disaster -- Expedite Processing" or "Hurricane Katrina -- Expedite Processing" . Expedite routing, hand walking whenever possible, to the forwarding area.

    Note:

    Follow the same procedures on returns that do not have notations such as "Disaster" , "Hurricane" , " Hurricane Katrina" , "Hurricane Rita" , "Hurricane Wilma" , or FEMA 1699, but there is indication on the return or on IDRS (-O/-S freeze) that the taxpayer has been impacted by a disaster.

  2. If there are additional prior year Forms 1040X claiming the carryback loss from the casualty, expedite all returns to CIS/AM.

  3. Returns identified as P.L.110-343 Disaster, Emergency Economic Stabilization Act of 2008, Hurricane Grant Relief, Housing and Economic Recovery Act of 2008 or anything similar written on the Form 1040X, expedite to CIS/AM.

3.11.6.3.14.2  (01-01-2010)
Disaster Correspondence

  1. Do not correspond for missing forms or schedules, unless there is not an explanation for a substantial amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If unsure about the claim, expedite to CIS/AM.

  2. If a Disaster claim is missing a signature (refund or balance due return), correspond using a 324C letter. Do not mail the return back to the taxpayer. Suspend the return until you secure a signature. Include a phone and fax number in the letter.

    Note:

    A faxed signature is only acceptable during a telephone conversation with the taxpayer.

    1. If a reply is received within 45 days, continue processing the return and input under Blocking Series 05.

    2. If no reply is received after 45 days, expedite to CIS/AM.

3.11.6.3.14.3  (01-01-2010)
Katrina Emergency Tax Relief Act (KETRA) and Gulf Opportunity Zone Act (GOZA)

  1. Katrina Emergency Tax Relief Act of 2005 (KETRA), (Publ 109- 73) enacted on September 23, 2005, and the Gulf Opportunity Zone Act of 2005 (GOZA) (Publ 109-135) enacted on December 21, 2005, suspended the $100 and 10% of AGI on casualty losses of personal use property.

  2. Expedite all TY 2005 Disaster claims with Form 4684 attached where the taxpayer has indicated "Revenue Procedure (Rev. Proc) 2006–32" and/or "Using Safe Harbor Methods for Determining Casualty and Theft Losses for 2005 Gulf Hurricanes" (Hurricanes Katrina, Rita and Wilma) on the top of form, expedite to CIS/AM.

3.11.6.3.14.4  (01-01-2010)
When a Disaster Claim Can Be Filed

  1. Taxpayers may file a disaster claim in either:

    • The same year that the disaster occurred or

    • The year immediately preceding the year in which the disaster occurred

  2. To file a disaster claim in the preceding tax year in which the disaster occurred the claim must be filed by the later of the following due dates shown in the Disaster Timeliness Chart below.

    1040X Filed For Disaster Occurred Processable If Received By
        Normal Due Date w/Extension (TC 460)
    2009 2010 04–15–11 10–15–11
    2009 04–15–13
    2008 2009 04–15–10 10–15–10
    2008 04–15–12
    2007 2008 Disaster CIS/AM Disaster CIS/AM
    2007 04–15–11
    2006 2007 Disaster CIS/AM Disaster CIS/AM
    2006 04–15–10

    Example:

    A disaster loss that occurred in 2010 that is being claimed on a 2009 return has until April 15, 2010 (without an extension) or October 15, 2011 (with an extension) to be considered timely filed.

  3. If the claim is filed late, expedite to CIS/AM.

3.11.6.3.14.5  (01-01-2010)
Processing a Disaster Claim (-O/-S Freeze)

  1. To process a Disaster claim, check TXMOD for a TC 150 and -O/-S Freeze on the account. If there is:

    1. A -O/-S Freeze: Continue processing using Blocking Series 05.

      Note:

      If it is a refund return and the refund is to be issued to a name and/or address other than the one shown on Masterfile (e.g. temporary address, taxpayer representative, prior name, in care of name and address), do not continue processing. Keep separate under routing sheet indicating "Disaster" and expedite routing to CIS unit.

    2. No TC 150 posted: Expedite routing to CIS per local procedure. Notate Priority Code "1" on the batch routing slip.

    3. No -O/-S Freeze (Balance Due Only): Expedite routing to CIS per local procedure. Refund returns do not require a -O/-S Freeze to process the return.

    4. No -O/-S Freeze (Refund return): Continue processing the return. Use Blocking Series 05 when inputting the adjustment.

      Note:

      If processing a Disaster claim and Priority Code 8 is required, expedite to CIS/AM.

3.11.6.3.14.6  (01-01-2010)
Processing Form 8914, Exemption Amount for Taxpayers Housing Midwestern Displaced Individuals (TY 2008 and TY 2009)

  1. Taxpayers may be eligible for an additional exemption amount for providing housing for the Midwestern individuals displaced by the disaster for Tax Year 2008 and 2009.

  2. The states affected by this disaster are: Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin.

  3. The total exemption amount for tax years 2008 and 2009 can not exceed $2,000 ($1,000 for married taxpayers filing separately)

  4. Taxpayer can claim this additional exemption in either TY 2008 or TY 2009, but not in both years. Expedite to CIS/AM if indication that both years are being claimed.

  5. Form 8914 must be attached. If Form 8914 is not present and the amount claimed for housing displaced individuals is $2,000 or less ($1,000 for married filing separate), correspond per IRM 3.11.6.9.1 using either Form 8009, box 5 or 7; or a 324C letter, paragraphs A, I, Z, 9.

  6. Use the following table to process Form 8914 claims:

    If Then
    Form 8914 is not attached, but the taxpayer is claiming an exemption amount for housing individuals displaced by a Midwestern disaster Correspond for Form 8914 per IRM 3.11.6.9.1 using either Form 8009, box 5 or 7; or a 324C letter, paragraphs A, I, Z, 9.
    The tax period is before 2008 and
    1. Form 8914 is the only issue









    2.Other issues are also present
    1.Send a 105C letter disallowing the claim and input the adjustment per IRM 3.11.6.9.2(1). -- Use the following for the fill-in: "We disallowed your claim on Form 8914, Exemption Amount for Taxpayers Housing Midwestern Displaced Individuals, because you cannot claim this credit prior to Tax Year 2008." .
    2. Send a 106C letter disallowing the claim and input the adjustment per IRM 3.11.6.9.2(2). -- Use the following for the fill-in: "you cannot claim the credit for Form 8914, Taxpayers Housing Midwestern Displaced Individuals, prior to Tax Year 2008." -- Continue to process the return for other issues
    The SSN or ITIN listed for displaced individual does match an SSN or ITIN for the primary, secondary, or exemptions claimed on the original return on TRDBV/RTVUE, Expedite to CIS/AM
    The SSN or ITIN listed for displaced individual does not match an SSN or ITIN for the primary, secondary, or exemptions claimed on the original return on TRDBV/RTVUE, Process using RC 104
    The amount is $500 per individual and does not exceed $2,000, ($1,000 for married filing separately) Process using RC 104
    The amount exceeds $500 per individual

    or

    the total amount exceeds $2,000, ($1,000 for married filing separately)     		1. Send a 4364C letter disallowing the exceeded amount (IRM 3.11.6.6.6 and 3.11.6.9.3):
    2. Input the adjustment: -- TC 29X for recomputed corrected tax -- Use RC 104 -- If other issues are present, continue to process the return.

    Note:

    Do not add the SSNs for the Midwestern displaced individuals' exemptions to DUPED/DDBCK.

3.11.6.3.15  (01-01-2010)
Pension Protection Act of 2006 (Active Duty Reservist)

  1. The Pension Protection Act of 2006 waives the ten-percent penalty tax that normally applies to most retirement distributions received before age 59 1/2. This law provides this penalty relief to reservist called to active duty for at least 180 days or for an indefinite period of time beginning after September 11, 2001.

  2. Taxpayers have been instructed to write "Active Duty Reservist" in the top margin of the Form 1040X. Expedite all of these claims to CIS/AM.

3.11.6.3.16  (01-01-2010)
Combat Zone

  1. Submission Processing will only process Combat Zone claims with net refund or zero balance. Any balance due Combat Zone returns must be routed to CIS/AM

    Note:

    When processing do not enter an Amended Claims date.

    Note:

    Do not apply CAT A criteria to Combat Zone returns, but continue to route to CIS if they meet CIS/AM.

  2. Several clues to determine if Form 1040X is a Combat Zone return are:

    1. "-C freeze"

    2. Taxpayer has indicated Combat Zone on the return.

      Note:

      If the literal "Combat Zone" is present on IDRS ensure there is a -C freeze before processing as Combat Zone. The literal without the freeze code is only an indication of past Combat Zone status on the account.

  3. If a -C Freeze , is posted on TXMOD/IMFOL, research ENMOD for a TC 500 with one of the following Closing Codes

    • CC 52 (Desert Storm)

    • CC 54 (Bosnia)

    • CC 56 (Enduring/Iraq Freedom/No Specific Campaign)

    • CC 57 (Exit Date)


    If present, continue processing the return.

  4. If there is no TC 500 posted on a return that has been identified as a Combat Zone return, input a TC 500 with the appropriate closing code (see 3 above) using REQ77. If the taxpayer provided a Date of Entry or Deployment, use that date for the TRANS-DT; otherwise use the IRS Received Date.

    Note:

    If no specific closing code is indicated, use CC 56.

  5. Input a TC 160 .00 if a TC 160 is already present on the account.

  6. If a "-I/I-" or "G-" Freeze Code is present, refer to CIS/AM

  7. Follow correspondence procedures (IRM 3.11.6.9.1 when required information is missing from the return.

  8. Do not True Dupe Combat Zone returns.

  9. Refer to IRM 3.11.6.8.1.2 if "Military Family Tax Relief Act" is indicated on the Form 1040X.

3.11.6.3.17  (01-01-2010)
Form 8885 Health Coverage Tax Credit

  1. The Health Coverage Tax Credit is a refundable credit, claimed by filing Form 8885.

  2. Use the following chart for Form 8885 claims or if a notation "Health Coverage Tax Credit" is present on the Form 1040X:

    If Then
    A "Reconsideration Letter" is attached
    1. Input TC 971 AC 010.
    2. Mail to the following address using Form 3210:
    Internal Revenue Service
    Andover Campus
    310 Lowell St.
    Andover, MA 01812
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer as CIS/AM.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Input TC 971 AC 013.
    2. Place ACTON history item "Exam/AUSC" on TXMOD.
    3. Mail to the following address using Form 3210:
    Internal Revenue Service
    ATTN: Manager Stop 4103 AUSC
    3651 South IH 35
    Austin, TX 73301

3.11.6.3.18  (01-01-2010)
Releasing Screened Returns

  1. To release forms that are screened, sort into batches for each category and follow local routing procedures (including Batch Transmittal).

  2. "Hand carry" statute returns to the area following local procedures.

  3. For "PECF Dummy" returns to be processed through ISRP, notate the correct Program Code and Blocking Series for Batching and Numbering function.

  4. Follow IDRS Pre-screen procedures for sorting and routing returns or correspondence to another function. For Carryback/Carryforward claims, Disaster Claims, Injured Spouse, Innocent Spouse, Statute returns, etc., follow local procedures for routing to CIS/AM.

3.11.6.3.19  (01-01-2010)
Processing Decedent Returns

  1. Submission Processing will only process Balance Due and Zero Balance decedent 1040X returns.

  2. Indications of a deceased taxpayer may include any of the following:

    1. Date of death is present

    2. "Deceased" written on the top of the form.

    3. "Deceased, Filing as surviving spouse" , or similar notation in the signature area.

    4. Death certificate, Form 1310, or other documentation is attached.

    5. "DECD" on an IRS label or written after a persons name.

    6. "Estate of" is present.

  3. Correspond for missing signature if return is not signed by a surviving spouse, an attorney, CPA or representative of bank/fiduciary institution (credit union, pension funds, etc.). Correspond per IRM 3.11.6.9.1 using a 324C letter, paragraphs A, Q, Z, c.

  4. If correspondence is required for any missing forms/schedules; do not address the correspondence to the deceased taxpayer.

    1. Filing status 2 -- address correspondence to surviving spouse

    2. All other filing status -- address correspondence to the "Estate of" ;place in front of taxpayer's name (e.g. Estate of John Smith Decd)

      Note:

      Power of Attorney (POA) becomes void upon taxpayer's death.

  5. Documentary evidence is not required for the authority to sign the following:

    1. Balance due returns

    2. Zero/even balance returns

    3. Joint (FS 2) or married filing separate (FS 3) returns signed by the surviving spouse.

  6. Route the following to CIS/AM:

    1. Refund returns

    2. MFR 08 is present on INOLES

    3. Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, is attached.

3.11.6.4  (01-01-2010)
Screening Criteria for Processable Return

  1. Before inputting any changes to a Form 1040X, check for the issue(s), freeze codes, transaction codes, math error condition, tax period, etc. that require routing to another area. (See Exhibit 3.11.6–3)

  2. If there is no TC 150 posted on a Current or Prior Year module, route the Form 1040X to CIS/AM.

    Note:

    If disaster is indicated on Form 1040X and no TC 150 has posted follow local procedures to expedite to CIS/AM. See IRM 3.11.6.3.14.

  3. If the return is not routed to another area, then check for the following items that may require correspondence or additional action:

    • Primary TIN

    • Tax period

    • Signature

    • Received date

    • Presidential Election Campaign Fund (PECF) boxes checked requiring preparation of a dummy return

    • Missing forms, schedules or other required information

    Note:

    When any Schedule or Form needed to support the change is missing and the refund is #$500 or more#, correspond per IRM 3.11.6.9.1 using Form 8009, box 5 or 7.

3.11.6.4.1  (01-01-2010)
Signature

  1. All processable claims require a valid signature(s). The signature(s) is required anywhere below the jurat (perjury statement) on Amended returns and CP Notices.

  2. If the jurat has been altered, treat it as a Frivolous claim. If the jurat is missing, treat it as an unsigned return and correspond for the missing signature(s) using a 324C Letter to obtain the signature. Do not mail the return back to the taxpayer. (See IRM 3.11.6.9.1).

  3. "Correspond" for an original signature only when signature can be clearly determined to be a photocopy.

  4. If Form 1040X is not signed, however a Form 1040 matching the Correct Amount column of Form 1040X is attached and signed, accept the signature and continue processing the return. Edit "see 1040" onto the signature line of the Form 1040X.

    Note:

    This include any Form 1040/A/EZ signed with a PIN.

  5. Correspond for the signature of two witnesses when the taxpayer signs with a mark such as an "X" . See IRM 3.11.6.9.1.

  6. Faxed signatures are acceptable for Amended returns, CP 27 Notices, and Form 2848 only if you are speaking to the taxpayer or authorized representative and the following steps are taken:

    1. Validate that you are speaking to the taxpayer or authorized representative.

    2. Advise the taxpayer that the faxed signature will become a permanent part of the tax return.

    3. Fax the jurat to the taxpayer or authorized representative and attach the returned fax to the return.

  7. Joint returns require the signature of both taxpayers unless one of the taxpayers falls into one of the categories below:

    1. One spouse is overseas and the signing spouse is authorized by a power of attorney (e.g. Form 2848) or similar signed document which clearly defines the scope of authorization granted to the POA.

    2. One Spouse is in a combat zone/qualified hazardous duty area and the signing spouse attaches a statement.

    3. One spouse is incapacitated. The signing spouse should attach a dated statement explaining the reason the incapacitated taxpayer cannot sign.

    4. Deceased spouse. See IRM 3.11.6.3.19.

  8. If the taxpayer is a minor (there must be a clear indication the child is a minor) the return must be signed by one of the following:

    1. The minor child

    2. A parent

    3. A guardian or other fiduciary representative and the refund under $100.

    4. A guardian or other fiduciary representative with documentary evidence is attached.

    5. If none of the above applies, correspond for a missing signature. See IRM 3.11.6.9.1.

      Examples of Fiduciary representatives includes :

      • Administrator (ADM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

  9. Do not correspond for a missing/incorrect signature(s) if:

    1. The return meets "route-out" criteria

    2. Any "Dummy" return that was prepared by the IRS

    3. A fiduciary representative or parent for other than a minor child signs for a refund under $100

    4. An incompetent taxpayers return is signed by a parent or spouse

    5. The return is signed by an attorney, CPA, or representative of a bank/fiduciary institution (credit unions, pension funds, etc.)

    6. If the signature on the return is not the same as the taxpayer see IRM 3.11.6.4.2.

    7. If Form 2848 with Part II completed and is attached to the return.

    8. The return is a true dupe.

    9. Taxpayer files as FS 3 and spouse did not sign the return.

      Note:

      Do not confuse attorney with Power of Attorney or Attorney-in-fact.

      Note:

      For decedent returns see IRM 3.11.6.3.19.

  10. When corresponding for signature issues, refer to the table below and IRM 3.11.6.9.1:

3.11.6.4.2  (01-01-2010)
Centralized Authorization File (CAF)-Form 2848(POA) and Form 8821(TIA) and General /Durable POAs

  1. The Centralized Authorization File (CAF) maintains a database of authorized representatives who are permitted to sign for the taxpayer. The CAF unit will assign unique identifiers (CAF numbers) to the representative(s) based on Form 2848 (Power of Attorney) and acceptable General/Durable POAs submitted.

  2. Taxpayers will occasionally submit a tax return that has been signed by their enrolled agent, or some other representative. These personal representatives of the taxpayer must submit a Form 2848 (Part II completed), or acceptable General/Durable POA or already be on file with the Centralized Authorization File (CAF) in order to sign the taxpayers return.

  3. Taxpayers may also submit a Form 8821, Tax Information Authorization and Declaration of Representative (TIA) as documentary evidence for signing the tax return; however, Form 8821 does not authorize the signing of the return. Correspond for a Form 2848 if the taxpayer submits a Form 8821. Refer to IRM 3.11.6.9.1 and use either Form 8009, box 2, or a 324C letter, paragraphs A, Q, Z, 6, c.

  4. When the taxpayer only submits a General/Durable POA, no Form 2848 (with Part II completed) and no "good standing" statement, it is not "acceptable" for CAF processing. Leave the document attached to the return and continue processing.

  5. The Good Standing statements are described as:

    1. If the POA is granted to an attorney, CPA enrolled agent or enrolled actuary, a declaration of good standing before the Service must be signed by the representative. If the POA is not present, correspond.

    2. If the POA is granted to a person other than one listed in (a), the POA must include the signature and date of two disinterested witnesses, or acknowledgment of a notary public.

      Note:

      Leave an action trail when routing a General/Durable POA or acceptable document to the CAF unit.

  6. Any form used in lieu of Form 2848 such as a General/Durable Power of Attorney must contain the following information to be considered acceptable for CAF processing and should be detached and routed to the CAF unit:

    1. Name, Taxable Identification Number (TIN), and address of the taxpayer

    2. Name and address of the designated representative

    3. Specific action to be performed (authorizes representative to inspect and/or receive confidential tax information, act on the taxpayers behalf for tax purposes, sign the return, etc).

    4. Type of tax (individual)

    5. Tax Year(s) or Period(s)

    6. Taxpayers signature and date

  7. Often, General or Durable Power of Attorney documents do not contain all requirements as stated in (3) above; however, the Conference and Practice requirements allow the IRS to accept these documents if they expressly provide that the designated person may prepare, execute and file the tax return or has similar language.

    Note:

    General references such as "all tax matters" , " deposits and withdrawals from financial institutions" , "real estate transactions" , etc. do not make it acceptable for CAF to process.

  8. In addition to General/Durable POAs or any "acceptable " document a statement of "good standing" or a Form 2848 (with Part II completed) is required to be acceptable for CAF processing.

  9. If the taxpayer includes a Form 2848 with Part II signed or provides one of the statements outlined in (9) below, route the POA, and/or Form 2848 or the attached "good standing" statement to the CAF unit.

  10. Use CC CFINK to research the CAF to verify the personal representative is authorized to sign the return for the tax period indicated.

    If And Then
    The signature on the return matches a representative listed on CFINK   Continue processing the return.
    The signature on the return does not match a representative listed on CFINK, or no record is found Form 2848 is attached
    1. Detach from Form 1040X and route to the nearest CAF unit.
    2. Continue processing the amended return.
    3. Leave an action trail on the amended return and Form 2848.
    Form 2848 is not attached Correspond for Form 2848per IRM 3.11.6.9.1 and use either Form 8009, box 2, or a 324C letter, paragraphs A, Q, Z, 6, c.

    Note:

    If Line 4 of Form 2848 or Form 8821 is checked, do not detach or route to the CAF unit. Continue processing the return.

  11. Use the following addresses when routing or faxing a Form 2848, Form 8821, or "acceptable" General/Durable POA to a CAF Unit:

    CAF Unit Fax Numbers Address
    Memphis
    901–546–4115
    Internal Revenue Service
    5333 Getwell Rd.
    Stop 8423
    Memphis, TN 38118
    Ogden
    801-620-4249
    Internal Revenue Service
    1973 N Rulon White Blvd
    Mail Stop 6737
    Ogden UT 84404
    Philadelphia
    215-516-1017
    Internal Revenue Service
    11601 Roosevelt Blvd
    DPSW 312
    Philadelphia, PA 19255

  12. You may accept a fax of Form 2848 if you are in telephone contact (in lieu of corresponding on Form 8009 or 324C letter) with a taxpayer to secure missing schedules or forms, or gathering information to make a return processable. Forward the Form 2848 to the CAF unit for processing, once completed.

  13. Do not detach any "Worksheets" provided by the military to personnel assigned to a Combat Zone. They are not considered to be a POA in lieu of Form 2848. See IRM 3.11.6.3.16.

  14. If correspondence is attached to the return that is unrelated to the amended return, but needs to be detached and routed to the appropriate functional area, attach a photocopy of the POA/TIA to the correspondence. Indicate that the form has been detached and routed to the CAF unit.

3.11.6.4.3  (01-01-2010)
TC 971 and Action Codes

  1. A TC 971, when input with one of the action codes 012 through 015 shown in (2) below, indicates the taxpayer filed an amended return and begins an action trail for the document. The action code indicates where the return was routed. Since this action generates a TC 977 on master file and a "-A or E-" freeze on IDRS, the Received Date of the Form 1040X must be input for the transaction date. For Action Code 270, the current date is entered when mailing a refund return back to the filer. Do not enter an action code if you are only routing correspondence or form attached to a Form 1040X.

  2. The action codes most frequently used by Code and Edit in conjunction with TC 971 are as follows:

    ACTION CODE DESTINATION
    012 Collection (When routing the entire return)
    013 EXAM
    014 Statute function
    015 Underreporter function
    065 Form 8857, Request for Innocent Spouse Relief (and Separation of Liability and Equitable Relief) filed. Route to Covington, KY.
    071 Form 8379, Injured Spouse Claim and Allocation.
    270 Amended return sent back to the taxpayer for additional information. Enter the current date as TRANS-DT.

  3. When you input TC 971 with the appropriate action code:

    1. Notate in the upper left margin of the document that TC 971 was input and the date of input.

    2. Edit the tax period if it is missing. See IRM 3.11.6.2.2.

3.11.6.4.4  (01-01-2010)
Claims Returned from Other Areas

  1. Occasionally, claims that were routed to another function may be returned for processing.

  2. Determine if the return requires:

    • Routing to the next highest priority

    • Additional research

    • Input (the return has been cleared from the area/function it was routed)

      Note:

      Claims that were routed out by the input of a TC 971 may generate a TC 977 on the module. If a TC 977 is posted, refer to Accounts Management.

3.11.6.4.4.1  (01-01-2010)
Forms 1040 Attached to Form 1040X

  1. Sometimes the 1040X Unit will receive Forms 1040 attached to Form 1040X. Determine if the attached Form 1040 and Form 1040X is for the same or different tax period.

  2. Research for a TC 150 for the tax period indicated on the return. If the figures on the return or the data on IDRS support a different tax period for either the Form 1040 or Form 1040X, edit the correct tax period onto the appropriate return.

    Note:

    If the tax period is missing, use these same instructions for determining the appropriate tax period. If unable to determine the correct tax period refer to IRM 3.11.6.2.2(3).

  3. If no TC 150 has posted on TXMOD/IMFOL for the same tax period, research TRDBV.

    1. If the tax data is present, staple Form 1040 behind Form 1040X, route to CIS/AM.

    2. If the tax data is not present, take the action based on the procedures in the table in (6) below.

    3. If a TC 594 is present, research for the TC 150 using the spouse's TIN:

      1. If present, continue processing the return.
      2. If not present, route to Receipt and Control.

  4. Route the 1040X to CIS/AM if it meets CIS/AM criteria.

  5. If the Form 1040 is for a different tax period than the Form 1040X and:

    1. Form 1040 is being used as "support" for a carryback loss, keep the two returns together and treat as a carryback/carryforward claim.

    2. No TC 150 has posted for the tax period of Form 1040, detach Form 1040. Continue processing Form 1040X.

  6. If no TC 150 has posted for the same tax period, take the following action based on the chart below.

    Note:

    If disaster is indicated on Form 1040X and no TC 150 has posted follow local procedures to expedite to CIS/AM. See IRM 3.11.6.3.14.

    If No TC 150 and Then
    Box 1: Form 1040 does not match the Correct Amount column of Form 1040X,

    Note:

    Form 1040 may be notated " As originally filed"


    1. For Form 1040X:
    a. Covert taxpayer's "Correct Amount" figures to a blank Form 1040 for current year or Form 6114 - Form 1040 Conversion Sheet for prior year returns.
    b. Edit "Do not Process" across the top of Form 1040X and staple behind Form 1040 with any supporting documents.
    2. On Form 1040 edit "Do Not Process" across the top.
    3..Staple the Form 1040 conversion or Form 6114 Conversion Sheet to the front of the forms.
    4. Route to Receipt and Control to be processed as an original return.
    Box 2: Form 1040 does match the Correct Amount column of Form 1040X,

    Note:

    Form 1040 may be notated with "As Amended" .


    1."X" Form 1040X and staple it behind Form 1040 with any supporting documents.
    2. For Form 1040:
    a. Edit "No TC 150" and date in the upper left margin of Form 1040.
    b. Circle out any indications that Form 1040 is amended.
    c. If Form 1040 is not signed and Form 1040X is signed, edit " 1040X signed" in the signature area of Form 1040.
    3. Route to Receipt and Control to be processed as an original return.
    Box 3: Two documents are received. A Form 1040 is attached to a Form 1040X:
    -- One may be notated "As originally filed" and matches the conditions in Box 1 above.
    --The second may be notated "As amended" and matches the conditions in Box 2 above.
    1. "X" both Form 1040X and the Form 1040 "As originally filed." Staple them behind Form 1040 "As amended" with any supporting documents.
    2. For Form 1040 "As amended" .
    a. Edit " No TC 150" and date in the upper left margin of Form 1040.
    b. Circle out any indications that Form 1040 is amended.
    c. If Form 1040 is not signed and Form 1040X is signed, edit "1040X signed" in the signature area of Form 1040.
    Route to Receipt and Control to be processed as an original return.

    Note:

    If routing a Form 1040 to Receipt and Control that was received after ≡ ≡ ≡ ≡ ≡ ≡ and the Received Date is missing, edit the Received Date from the Form 1040X onto the Form 1040.

  7. If a TC 150 has posted for the same tax period, staple the Form(s) 1040 behind the Form 1040X and continue processing.

    Note:

    If Form 1040X is not signed see IRM 3.11.6.4.1.

3.11.6.4.4.2  (01-01-2010)
E-file Documents: Form 8453 - U.S. Individual Tax Declaration for an IRS e-file Return, Form 8453-OL -- U.S. Individual Income Tax Declaration for an IRS e-file Online Return, Form 8879 - IRS e-file Signature Authorization or Letter 2936/A or Letter 3043 Attached to Form 1040 or 1040X

  1. There may be cases in which the taxpayer will attach one of the following forms to the Form 1040 or 1040X. If the Form 1040X includes a Form 1040 for back-up information, follow the instructions below for E-file documents attached to Form 1040X if applicable.

    IF AND THEN
    Form 1040X has Form 8453/OL, Letter 2936/A, or Letter 3043 is attached   Detach the Form 8453/OL, Letter 2936/A or Letter 3043 and route to e-file for processing. Continue to process the Form 1040X.
    Form 1040X has Form 8879 attached 1. Form 8879 is signed by the taxpayer and line 1 through 5 do not match the Corrected Amount column of Form 1040X
    2. Otherwise     		1. Detach the Form 8879 and route to e-file for processing. Continue to process the Form 1040X.
    2. "X" the Form 8879 and continue to process the Form 1040X.
    Form 1040/A/EZ has Form 8453/OL or 8879 attached 1. The account has a TC 150 posted
    2. The account does not have a TC 150 posted on TXMOD, IMFOL or TRDBV     		1. Route the entire package to e-file for processing.
    2. "X" the Form 8453/OL or Form 8879 and route the return to Receipt and Control.

3.11.6.4.4.3  (01-01-2010)
True Duplicate Returns

  1. A true duplicate condition occurs when the taxpayer files two 1040 series returns for the same tax year. Often the taxpayer will send in a Form 1040/A/EZ with a notation of "Duplicate" , "Copy" , "Substitute" , "Amended " , "Corrected" , "Revised" , "Superseding" , or "Tentative" , or attaches a copy of a previously filed return.

  2. Research using CC's TXMOD, IMFOL, RTVUE (per return) or TRDBV for a TC 150 for the tax year of the return. If the figures or data from TXMOD support a different tax period, circle out the incorrect tax period and edit the correct tax period onto the return.

    1. If no TC 150 has posted, circle out any notation that suggest the return was previously filed. Edit "No TC 150" in the upper left margin and send to Receipt and Control to be processed as an original return.

    2. If a TC 150 has posted, determine if the Form 1040 is a copy of the original filed return or is an"amended" return. (See (3) below).

      Note:

      If correspondence is attached, route the return to the appropriate area based on the correspondence.

    3. If no TC 150 has posted and a TC 594 is present, research IMFOL using the spouse's TIN. If present continue processing the return; otherwise route to Receipt and Control.

  3. When a TC 150 has posted, research IDRS for any differences between RTVUE and the Form 1040. Compare the following items and process accordingly:

    • Entity information (name and address)

    • Filing Status

    • Exemptions (dependents claimed and money amount)

    • Standard Deduction and Itemized Deductions

    • Line -by- line comparisons (income, deductions, credits, other taxes, payments, penalties, etc.)

    • Direct Deposit information (account/routing numbers use CC TRDBV to research)

      Note:

      If any normal "route out" criteria are present, take appropriate action.

      Note:

      When a True Dupe return has a math error posted, refer to CIS/AM.

  4. If a change has been discovered, refer as CIS/AM.

    Exception:

    Accounts with "SUBST4" on IMFOL or "SFR" on TXMOD should be routed to Collections. (See IRM 3.11.6.3.11(2))

  5. If there are no changes, the return is a True Duplicate return. Research the return packet for any correspondence that would indicate why the taxpayer is submitting a duplicate filing.

    1. If the taxpayer explains the return is a copy and some additional action is being requested, refer to AM or appropriate area.

    2. If the taxpayer explains the return is a "copy" and no additional action is required, identify as classified waste by marking the return as determined by local management.


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