Returns and documents suspended from normal processing are Rejects. Work may be included in the suspense/rejects inventory for any of the following reasons:

Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, TAS Case Criteria), or has Form 911 attached, and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayers Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

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 businesses include, but are not limited to, the examples in IRM 4.10.12, Frivolous Return Program (FRP), shown in Exhibit 3.12.38-9.

Review the return to determine whether it appears to be a frivolous return.

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are willful and deliberate attempts to evade or defeat the income tax. Flagrant criminal activity includes, but is not limited to, the failure to pay taxes due and/or taxes collected or withheld and claims of false refunds based on bogus return information.

Any return identified as having any CI criteria found in Exhibit 3.12.38-10 SSPND 332, and after pulling the return place it in the "CI Funny Box" .

If CI has stamped the return, no further CI action is required, but if the return fits other criteria (e.g., Frivolous Argument) take appropriate action.

The primary objective in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Small Business/Self Employed (SBSE) Exam will provide support and assist Submission Processing (SP) with any questionable return identified during processing. Exam has a vast multitude of programs and tolerance criteria already identified in various IRM sections. Exam does not restrict SP with the flexibility to refer questionable returns other than what is currently identified in various IRMs.

Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

"CIS" returns are identified with "CIS Image - Do not correspond for signature" stamped below the signature line or "CIS" annotated on the front of the return.

Follow the instructions below for processing "CIS" returns:

The Restructuring and Reform Act of 1998 RRA 98, Section 3705(a), provides identification requirements for all IRS employees working tax-related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

All IRS employees who communicate by telephone, correspondence, or face to face, with taxpayers or their personal representative, on tax-related matters are required to provide (at a minimum) the following information:

At most Submission Processing Centers (SPCs), the carts of documents are retained until:

To maintain effective control, it is imperative that all documents be identified by work group based on the Julian date of processing through the Generalized Mainline Framework (GMF).

Any documents that cannot be sent to Files within the normal 4-5 day period should be maintained in a researchable order by work group, so that the documents can be pulled by Files personnel.

Most document requests will be processed by the Files function. However, priority charge-out requests will be honored when the blocks are located in Error Correction.

Some documents will be separately sorted, blocked, and numbered so that they can be easily routed to other campus functions for subsequent actions:

Form 813 will be routed to Files after the errors are corrected for these documents.

The documents will be routed to the appropriate areas.

All other documents will be routed to Files.

The error and reject register correction systems provide a great deal of flexibility in deciding what registers and inventory listings will be printed each day, and in what sequence.

Sections I, II, and IV of Form 6826 are used for error registers. Sections III and V are for rejects.

This card will be prepared when the Correction ABC/Sequence Number (SN) is generated.

The Error Display Card is to request the printing of raw and loop error records from the error tape and must be input daily.

A separate line must also be completed, if only certain programs within a Master File are being requested. Use the Program Number field to select specific programs within a Master File, to be printed on the register. Enter the complete Program Number or enter any lead numerics followed by Xs. The program numbers may be entered as follows:

Use the Raw field to select the raw error records to be printed on the register. This field contains seven positions for year and Julian date (YYYYDDD). A request for loop registers will override the default values which have been set.

Loops, First through Fifth - The same criteria for raw errors applies to loop errors.

Subsequent Loop (YYYYDDD Only) - All error records that have Error SN Julian dates less than or equal to the YYYYDDD entered, will print as "sixth loop or over" errors.

Be sure that all records with old Julian dates are printed on the error register.

Valid Error Display Cards will appear on the listing with nothing printed in the last column of the report. The last column of the report does not have a printed title.

Invalid Error Display Cards will appear on the listing with "INVALID" printed in the last column. The Error Display Cards will be invalid if any of the following conditions are present:

This card should be input whenever a Reject Inventory or Aged List is required, or reject loop registers should be printed.

Prepare the Reject Display Card as follows:

Prepare an Error Sort Card to request changes to the following conditions:

Generally, the sort requests should not change from day to day. If a request is not input, the computer will default to the last request made.

Each horizontal line on the Error Sort Card represents a computer line. A separate line must be prepared for each Master File. Circle for the appropriate Master File Code as follows:

The Print Sequence field determines whether the error records are printed in transcribed batch sequence or in DLN sequence. Circle the appropriate number on the card for Raw, First, Second and Subsequent Loops.

Circle "1" for each register to print an Error Pull List.

Correction ABC/SN - This field determines whether or not the computer will generate correction record ABC/SN for raw and first loop records. Circle the appropriate number or leave blank if the numbering is not to be generated.

If the Correction ABC/SN has been computer generated, a computer card must be prepared daily to assign the beginning ABC.

This card is prepared only if the Rejects Unit wishes to change the way that registers are sorted or the way the Current Reject Listing or Pull List is printed.

As new data enters the Submission Processing Campus (SPC) computer, the computer performs:

After data for an input document passes all required checks, it is sent to the Martinsburg Computing Center (MCC). This is known as good tape.

If the data for an input document does not pass all of the required checks, the record is placed in error status.

The last number on the right side of the Document ID line is a register counter to be used to count the number of errors within a batch of work.

The Error Display Run Control Report, GMF 10-40, is generated daily as a computer summary of the error processing for the day. This report reflects the totals for the:

Three portions of this report are used in preparing Form 6826, Error/Reject Display Request Card. IRM 3.12.38.2.2.

The Daily Error Volume Report is a listing of volumes of error records in each program on the error tape.

The information is provided by Master File in Error Sequence Number by Julian date.

The Error Register Summary is produced when the error register is printed.

This summary contains totals for each type of error document by Program Number and error status (for example, Raw, 1st Loop, and Advanced Loops).

The listing also provides the total error documents in error status for all program numbers within a Master File. It is not a comprehensive total of all records on the error tape. Those figures are available on the Daily Error Volume Report.

The Error Correction Control function receives the error register from the Computer Branch normally within half a day after receiving the carts of newly transcribed documents.

Many SPCs use various local controlling, routing, or sign-out forms prepared by the Error Correction Control function.

Each error register is corrected, transcribed, and re-validated. If the record is still unresolved, a loop error register is printed and worked in the same manner as the original register.

In most SPCs, first loop registers are worked directly from the document carts in the same manner as raw.

For second loop, all documents should be pulled from the blocks and associated directly with the individual error registers.

All errors should be corrected or rejected within three weeks of the Error Sequence Julian date.

The Error Pull List, GMF 10-42 is used as an aid for locating source documents for error register items. It is printed in the same format as the error registers.

The list is printed for the loop in which the documents will be pulled from the block, for association with the register.

The Error Pull List Summary may be used to assist in scheduling the resources needed to pull documents.

Corrected error registers are released to the control function as the pages are completed by Tax Examiners and/or Quality Review. They are batched and routed to ISRP throughout the workday until the daily cut-off.

Each block of registers must have a correction alpha block control (ABC) and each corrected register requires a serial number. If the ABC is generated and is to be transcribed:

If a record on the error register is not to be corrected at all for that day, the SN must not be stamped or written onto the register for that record. In addition, if a generated SN is present, it must be lined through. The absence of any SN or the presence of a lined through SN will indicate to ISRP not to transcribe any correction data for that record.

The error registers are returned to Error Correction after transcription. They may be destroyed after verification that no unusual problems have occurred on the subsequent loop.

Each reject register must be associated with the source document. The specific procedures for pulling and associating the documents are determined by SPC management.

The Reject Inventory List, GMF 11-43 is a listing of all items in the reject inventory as of date of the listing. It can be sorted by any of the following:

The inventory list should be generated at least once a week as a research tool for items in rejects.

Retain this list for at least one year.

The Reject Display Card is used to request the inventory list and select the sequence(s) for the printed list.

The Reject Pull List, GMF 11-44 is a list of items in the reject inventory and is printed upon request. The list is always printed in the same sequence as the reject register. If the registers are sorted by source, the headings will show the registers as:

Use the Reject Sort Card to request the Pull List to designate whether the registers will be sorted by source.

As the document is rejected, it may be pulled by:

The documents may be pulled from the reject register or from the Pull List.

Upon receipt of the documents and registers, the Reject Control Clerk will compare document and register for correct association:

Route the work to the applicable functions within the unit. The following cases should be worked on a priority basis:

Some reject registers will be received without documents.

Each corrected reject record is subject to the normal validity checks just as any error record.

Reject loop records are part of the reject inventory and will print on the Reject Inventory List, Reject Aged List, and Reject Disposition List. Corrected loop records do not print on the Correction Verification List

Reject loop registers must be associated with the documents the same way as raw rejects.

Reject loop registers should be printed at least once a week, but may be printed as often as daily. As Program Completion Dates (PCD) approach, the loop registers for those programs should be requested more than once a week.

Use the Reject Display Card to request printing of the loop.

Use the Reject Sort Card to determine the print sequence and to request the pull list.

If a document reappears on the loop register more than four cycles and it is not due to a programming issue, coordinate with your Lead/Manager, at their discretion, to:

The Reject Register Summary, GMF 11-45 lists all programs and categories of reject registers for the day and is:

Batch the completed reject registers for data transcription as follows:

Assign a sequential Serial Number to each register.

Enter an alpha sticker on the top-left corner of the first document in each block. Prepare a transmittal to ISRP according to local procedures.

The registers are returned after transcription and matched against the Reject Correction Verification List.

The Current Reject Listing, GMF 11-46 is a daily list of all items added to reject inventory on that date.

The Reject Correction Verification List, GMF 11-48 is printed in correction block and Serial Number sequence for easy association with the reject registers returned from transcription.

The following registers should be pulled from the block for re-transcription or, if necessary, to be re-worked:

Check the Summary and reconcile the total count with the number of registers processed.

Retain the Correction Verification List as an index to the corrected registers for at least one year.

Items identified as "Invalid" will always loop. Some of the reasons for "Invalid" corrections are as follows:

The Reject Disposition List, GMF 11-47 is used to research rejects that have already matched corrections input.

This listing is printed in RSN sequence and includes all corrected rejects for that date, both raw and loop.

Each entry includes a literal indicating the disposition of the document, or in the case of renumbered documents, includes the new DLN.

The new DLN must be verified with the document before release. Verify by comparing with the new DLN on the Disposition List, GMF 11-47 or on the New DLN Record List, SCF 11-48.

Retain the Disposition List as a reference for at least one year, so that corrected reject registers can be located.

The correction ABC and serial number are shown on the Disposition List.