3.13.5  Individual Master File (IMF) Account Numbers

Manual Transmittal

November 29, 2013

Purpose

(1) This transmits revised IRM 3.13.5, Campus Document Services - Individual Master File (IMF) Account Numbers in IRM 3.13, Campus Document Services.

Material Changes

(1) Editorial and subsection changes have been made throughout this IRM.

(2) Some subsections have been changed, resulting in renumbering. If an IRM Procedural Update (IPU) was issued before the 2014 update and the respective IRM subsection numbering changed, the Material Changes will reflect the new IRM subsection number to identify where the change is located.

(3) Renamed IRM 3.13.5.1.4, IDRS Browsing, to IRM 3.13.5.1.4, Taxpayer Browsing Protection Act. Added information on the UNAX web page and updated IRM.

(4) IPU 13U0008 issued 01-02-2013 IRM 3.13.5.1.6, Batch Requirements, by adding information regarding the Form 12412 from TAS.

(5) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.1.8, Requesting Taxpayer Information by adding information to remove the word deceased and use the term "Estate of" when corresponding.

(6) Revised IRM 3.13.5.1.10, Receipt of Erroneous Taxpayer Forms, Payments and Correspondence, by adding a new paren (1) regarding what to do with the receipt of original/copies of tax forms that are attached to Entity forms such as Forms 8822, Forms 56, etc.

(7) Revised IRM 3.13.5.5, Frivolous Return Program (FRP) by adding instructions to contact the lead/manager in the ECU to review the documents prior to sending to the FRP coordinator.

(8) Revised IRM 3.13.5.6, Duplicate Addresses, by revising and removing the Accounts Management Taxpayer Assurance Program (AMTAP) and substituted Income and Verification Operations (IVO). This change was made throughout the IRM.

(9) IPU 13U0265 issued 02-01-2013 IRM 3.13.5.7.1, Establishing & Maintaining the Entity, by adding a cautionary note not to route a return to Statutes without a TIN.

(10) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.7.1, Establishing & Maintaining the Entity, by revising the reminder within paren (4).

(11) IPU 13U0354 issued 02-14-2013 IRM 3.13.5.7.1, Establishing & Maintaining the Entity by revising paren (4) regarding the need for a TIN to process a document.

(12) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.7.1, Establishing & Maintaining the Entity by referencing IRM 3.13.2.7.1 due to Statute processing dates.

(13) Revised IRM 3.13.5.8, Cases Received in IMF Entity, by adding the Form 2363.

(14) IPU 13U0311 issued 02-08-2013 IRM 3.13.5.9, Customer Account Data Engine (CADE) Version 2, by changing the tridoc title to Customer Account Data Engine (CADE) 2. Added instructions for IMF daily and weekly posting information.

(15) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.10, Document Locator Number (DLN), by requiring the entering of information in the REMARKS field when completing address using Integrated Automation Technologies (IAT) address tool or IDRS.

(16) IPU 13U0707 issued 04-09-2013 IRM 3.13.5.17, IMF Automated Establishment of Secondary Taxpayers and Correction Procedures, by updating information on requesting NUMIDENT transcripts through IDRS using CC MFTRA with Request Type "U" .

(17) IPU 12U1929 issued 12-12-2012 IRM 3.13.5.18, Social Security Administration (SSA) Requirements, by revising the title of IRM to Social Security Administration (SSA) Requirements and Form SSA-2458. Added information that an SSA Form SSA-2458 is needed to remove an inaccurate Date of Death (DOD).

(18) Revised IRM 3.13.5.20, Social Security Number (SSN) Format, by adding information regarding the Social Security Administration (SSA) numbering range format.

(19) IPU 13U0730 issued 04-12-2013 IRM 3.13.5.21, IRS Individual Taxpayer Identification Number (ITIN) Format, by expanding the ITIN numbering range to "99" .

(20) Revised IRM 3.13.5.24, Transaction Codes Used to Merge Accounts, by adding information regarding TC 016 to existing table.

(21) Revised IRM 3.13.5.27, Entity Changes from Oral Statements, by removing the note in paren (2) and adding a new paren regarding leaving information on taxpayers answering machines.

(22) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.27, Entity Changes from Oral Statements, by allowing one taxpayer on a Married Filing Jointly (MFJ) account to provide the oral authority to change both taxpayer accounts after completing the authentication process.

(23) IPU 13U0730 issued 04-12-2013 IRM 3.13.5.27, Entity Changes from Oral Statements, by separating formerly numbered paren (4) into two parens (4) and (5).

(24) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.28, Address Changes from Oral Statements/Telephone Contact, by adding a reference to IRM 3.13.5.28.1 and revising the procedures for Married Filing Joint (MFJ) accounts.

(25) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.28(4), Address Changes from Oral Statements/Telephone Contact, requiring the entering of information in the REMARKS field when completing address changes using IAT address tool or IDRS.

(26) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.28.1, Procedures on Completing an Address Update/Change due to "Oral" Statements/Telephone Contact, by updating the "If/Then" table in paren (1) and removed paren (2).

(27) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.28.1(2), Procedures on Completing an Address Update/Change due to "Oral" Statements/Telephone Contact to require the entering of information in the REMARKS field when completing address using IAT address tool or IDRS.

(28) IPU 13U0008 issued 01-02-2013 IRM 3.13.5.28, Address Changes from Oral Statements/Telephone Contact, by adding instructions to determine whether the address change is permanent or temporary before completing address change.

(29) Revised IRM 3.13.5.30, Standard Abbreviations, by adding the information in formerly numbered tridoc 3.13.5.124, Acceptable Abbreviations for Designated Titles, to combine the two abbreviation tables into this tridoc.

(30) Revised IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding a Reminder to paren (16) regarding working decedent returns. The reminder states, the Estate of a deceased taxpayer can file an individual tax return for the year the taxpayer died. If a tax return is filed on behalf of the decedent after the year of their death, a Form 1041 must be filed on their behalf.

(31) Revised IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding removing the new paren h. and replacing it with an exception note.

(32) IPU 13U1360 issued 08-16-2013 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding information to paren (5) by adding a new h. to the existing table. This instructs how to make an address change in specific fiduciary requested situations.

(33) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, by adding an new paren if there is no TC 150 on the account to return the Form 56 to the taxpayer and correspond to the fiduciary that the taxpayers account does not have any returns filed. Also added instructions regarding which tax year to add to the name control.

(34) IPU 13U0354 issued 02-14-2013 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, regarding the fiduciary name line.

(35) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship.

(36) IPU 12U1840 issued 11-16-2012 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, to add guidance to consider that Form 56s received with EINs are to be considered BMF requests. It informs how to select the appropriate fiduciary relationship title if two titles are provided and includes other editorial changes.

(37) IPU 12U1782 issued 10-31-2012 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, added information to ensure the boxes marked by the taxpayer are completed correctly. Added information to underline the business name control when processing Form 56-F.

(38) IPU 12U1663 issued 10-02-2012 IRM 3.13.5.31, Form 56, Notice Concerning Fiduciary Relationship, added information to paren (5) (a) to not complete a name change on the account beyond the current processing year.

(39) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.31.2, Termination of Fiduciary Relationship (12/2011 version only), added the inclusion of court documentation and legal documentation as a method of removing the fiduciary from the taxpayer's account.

(40) IPU 13U0586 issued 03-22-2013 IRM 3.13.5.32, Form 1128, Application to Adopt, Change or Retain a Tax Year for Individual Taxpayer, changes were made to IRM to add Chief Counsel's address into IRM and reference the Note within paren (2) to IRM 3.13.2.20.2.

(41) IPU 13U0453 issued 03-04-2013 IRM 3.13.5.32, Form 1128, Application to Adopt, Change or Retain a Tax Year for Individual Taxpayer. Added instruction on how to process Form 1128 where the taxpayer checks "yes" within Part II, Section C within Line 9.

(42) IPU 12U1663 issued 10-02-2012 IRM 3.13.5.34, by changing the title of the tridoc to Form 4442, Inquiry Referral. Removed any references to the obsolete Form 4149.

(43) Revised IRM 3.13.5.38, Forms 8288 and 8288-A, by substituting MFT 17 for MFT 51. This change is due to a programming update to CC TMSSN.

(44) Revised IRM 3.13.5.46, Updating Address Records, by requiring that remarks are entered to indicate who requested the address. If the requester is the Primary taxpayer to enter a P in the remarks section. If the requester is the Secondary taxpayer, enter an S the remarks section. If both taxpayers request the change, enter a B in the remarks section.

(45) IPU 13U1374 issued 08-21-2013 IRM 3.13.5.47 Information Required on Address Changes, by adding information to paren (3) regarding when to send the Form 8822 or taxpayer correspondence for an ITIN if is it in assigned status and TP asks for an ITIN notice to be reissued; or the ITIN is in suspended status; or the ITIN is in Office of Foreign Asset Control (OFAC) status. Only in these three instances require the Form 8822 or the taxpayer documentation to should be sent to the ITIN unit.

(46) IPU 13U1360 issued 08-16-2013 IRM 3.13.5.46, Information Required on Address Changes, by adding information to paren (3) regarding to return the Form 8822 and any taxpayer correspondence received from the ITIN Unit. The instructions are to complete the address change and return the Form 8822 and taxpayer correspondence to the ITIN unit using your locally developed procedures.

(47) Renumbered IRM 3.13.5.46, Updating Address Records, which was formerly numbered IRM 3.13.5.46.

(48) IPU 13U1360 issued 08-16-2013 IRM 3.13.5.46, Updating Address Records, by updating the United States Postal Service (USPS) web page.

(49) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.47, Information Required on Address Changes, by adding information that the FINALIST program will occasionally abbreviate the street address names.

(50) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.47(3), Information Required on Address Changes, by requiring the entering of information in the field REMARKS when completing address using IAT address tool or IDRS.

(51) IPU 13U1374 issued 08-21-2013 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by adding information to paren (7) regarding to return the Form 8822 received from the ITIN Unit. Clarified the instructions to review the ITIN account if it is in assigned status and TP asks for an ITIN notice to be reissued; or if the ITIN is in suspended status; or the ITIN is in OFAC status. These instances only require the documentation or Form 8822 to be returned to ITIN unit upon completion of the address change.

(52) IPU 13U1360 issued 08-16-2013 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by adding information to paren (7) regarding returning the Form 8822 received from the ITIN Unit. It instructs to complete the address change and return the Form 8822 to the ITIN unit using your locally developed procedures.

(53) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by adding an exception to paren (2) to not correspond for a missing signature on a married filing joint account and one taxpayer is deceased.

(54) IPU 12U1840 issued 11-16-2012 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by revising paren (4) to correspond if the taxpayer does not provide an original signature.

(55) IPU 12U1819 issued 11-09-2012 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by changing the reminder in paren (13) to not complete name changes due to receipt of a Form 8822.

(56) IPU 12U1663 issued 10-02-2012 IRM 3.13.5.48, Form 8822, IMF Change of Address Request, by adding information to destroy incomplete scraps of paper, post it notes, etc. as classified waste when correcting correspondence to the taxpayer. Added instructions to return the taxpayer's Form 8822 when it is incomplete. Added revised instructions to enter an asterisk in the TIN field when sending a 0102C letter to the taxpayer.

(57) Revised IRM 3.13.5.49, Form 8822-B, Change of Address - Business to rename the IRM to Form 8822-B, Change of Address or Responsible Party- Business, due to the form title change.

(58) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.49(3), Form 8822-B, Change of Address - Business by requiring the entering of information in the field REMARKS when completing address using IAT address tool or IDRS.

(59) Revised IRM 3.13.50, Temporary Address Change Requests, by revising paren (2) and replacing it with a new parent (2) that contains the fill in paragraph to use with 0104 C letter.

(60) IPU 12U1819 issued 11-09-2012 IRM 3.13.5.52, Address Changes Due to Remittance Processing, by revising paren (6) to remove the requirement to send the case to AM as this is unnecessary.

(61) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.53 Written Address Change Requests for Taxpayers Filing Jointly, by requiring the entering of information in the field REMARKS when completing address using IAT address tool or IDRS.

(62) IPU 13U1148 issued 06-25-2013 IRM 3.13.5.57, FINALIST Address Corrections Prior to Posting to IMF, by removing reference to EONs and replacing it with the corrected method of accessing the IMF FINALIST report using Control-D WebAccess (CTDWA).

(63) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.57 FINALIST Address Corrections Prior to Posting to IMF, by adding information that the FINALIST program will occasionally abbreviate the street address names.

(64) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.60(8), Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, by requiring the entering of information in the field REMARKS when completing address using IAT address tool or IDRS.

(65) IPU 12U1870 issued 11-23-2012 IRM 3.13.5.60, Processing Undeliverable CP Notices/Correspondence/Correspondex Letter, by removing paren (9) which is unnecessary.

(66) IPU 12U1627 issued 09-27-2012 IRM 3.13.5.60, Processing Undeliverable CP Notices/Correspondence/Correspondex Letters, by removing paren (c) within 3.13.4.60(6) which is unnecessary.

(67) Revised IRM 3.13.5.61, Unsigned, Undelivered Mail Research and Correction Procedures, by adding a Reminder to paren (5) regarding working decedent returns. The reminder states, the Estate of a deceased taxpayer can file an individual tax return for the year the taxpayer died. If a tax return is filed on behalf of the decedent after the year of their death, a Form 1041 must be filed on their behalf.

(68) IPU 13U1360 issued 08-16-2013 IRM 3.13.5.61, Unsigned, Undelivered Mail Research and Correction Procedures, by removing information on forwarding cases with TC 971 AC 199, 504, 505 and 505 to AMTAP. Removed AMTAP from the table and replaced it with Integrity & Verification Operations (IVO).

(69) IPU issued 02-05-2013 IRM 3.13.5.61, Unsigned, Undelivered Mail Research and Correction Procedures, by adding information to enter an 80 in the DLN-CD screen when using CC FRM77 to halt the subsequent generation of unnecessary CP 098s.

(70) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.61, Unsigned, Undelivered Mail Research and Correction Procedures, by adding information to use block series 80 when working undeliverables to halt the subsequent generation of unnecessary CP 098s.

(71) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.65, by adding new Reason Code (RC) 0 and to rename the IRM to Unpostable Code (UPC) 147 Reason Codes (RCs) 0 and 1 "Possible ID Theft" .

(72) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.65.1, added new RC 0 and renaming to UPC 147 RCs 0 and 1 Correspondence/Corrections.

(73) Revised IRM 3.13.5.66, UPC 147 RC 4--No Filing Requirement, by correcting the date of June 15 within the table to April 15.

(74) IPU 13U0492 issued 03-08-2013 IRM 3.13.5.66, UPC 147 RC 4--No Filing Requirement, added the new name of Privacy, Governmental Liaison and Disclosure (PGLD).

(75) IPU 12U1929 issued 12-12-2012 IRM 3.13.5.66, UPC 147 RC 4--No Filing Requirement, by adding information that the Form SSA 2458 is the only documentation to be used to remove an erroneous DOD unless the DOD is no longer present on CC INOLE.

(76) IPU 12U1894 issued 11-30-2012 IRM 3.13.5.66, UPC 147 RC 4--No Filing Requirement, by adding a reminder to remove the TC 971 AC 524 from the taxpayers account if there is no Date of Death (DOD) present on the account.

(77) IPU 12U1819 issued 11-09-2012 IRM 3.13.5.67.1, Insolvency Cases, by adding information to paren (6)d to complete the TIN change to the secondary taxpayer's TIN under the primary account and to the secondary's account when necessary.

(78) IPU 13U0492 issued 03-08-2013 IRM 3.13.5.68, Guidelines to Completing IMF Merges, added information to allow an additional cycle for merges input prior to cycle 24 since IMF conversions are completed in cycle 25.

(79) IPU 12U1894 issued 11-30-2012 IRM 3.13.5.68, Guidelines to Completing IMF Merges, by adding information to review accounts for TOP Offsets and to forward the cases to AM without merging the taxpayer accounts.

(80) Revised IRM 3.13.5.72, Assignment of Internal Revenue Service Numbers (IRSNs), by adding information on how to enter a taxpayer name if they only provide one name when using CC TMSSN.

(81) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.72, Assignment of Internal Revenue Service Numbers (IRSNs), regarding the use of the terms "taxpayer" and "fiduciary" and when these terms should be considered to be used interchangeably throughout the IRM.

(82) Revised IRM 3.13.5.73, When IRSNs are Needed, by moving a portion of table within paren (3) and making a new paren (4). This change stresses completing research prior to assigning an IRSN.

(83) Revised IRM 3.13.5.76, Special Requests for IRSNs, by adding a Note to the table within paren (2) to indicate that the approved indicator is shown on CC IMFOLE.

(84) IPU 12U1806 issued 11-07-2012 IRM 3.13.5.78, IRSN Requests for Erroneous Wages from Rejects, by adding instructions to reuse previously assigned and revoked IRSNs.

(85) IPU 13U0730 issued 04-12-2013 IRM 3.13.5.81, Individual Taxpayer Identification Numbers (ITIN), by expanding the ITIN numbering range to "99" .

(86) Revised IRM 3.13.5.81.3, ITIN Research, by adding information to paren (3) regarding ITIN cases that display on IDRS with the message “RECORD NOT FOUND”. These cases must be forwarded to the ITIN unit for correction.

(87) Removed portions of IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, since the information did not provide instructions on how to assign an IRSN for a Rejected ITIN.

(88) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, by revising paren (2) on how to determine the Return Processable Date (RPD).

(89) IPU 13U0265 issued 02-01-2013 IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, by referencing IRM 3.21.263.5.10.6 to determine the Return Processable Date (RPD).

(90) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.81.5, Assigning an IRSN for a Rejected ITIN, by adding information on determining the RPD if needed.

(91) IPU 13U0406 issued 02-22-2013 IRM 3.13.5.81.8, Reject "Ts" (AUSPC ONLY), by adding new paren regarding sending cases to the Rejects unit when necessary.

(92) Revised IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by removing (a) and (b) within paren (18).

(93) IPU 13U1422 issued 09-05-2013 IRM 3.13.5.81.9 ITIN Rejects (AUSPC ONLY), removed information on ITIN Reject Codes. Added specific suspense and Reject Codes to new paren (18).

(94) Revised IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by removing the Reject chart and adding information to send an ITIN back to the ITIN unit if the Date of Birth (DOB) is missing.

(95) IPU 12U1952 issued 12-14-2012 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by revising instructions contained in the ITIN Reject Codes.

(96) IPU 12U1929 issued 12-12-2012 IRM 3.13.5.81.9, ITIN Rejects (AUSPC ONLY), by adding a chart on specific actions needed on ITIN Reject Codes and procedural updates. Added to references to IRM 3.21.263 regarding ITIN Suspense and Reject Codes.

(97) IPU 13U0707 issued 04-09-2013 IRM 3.13.5.86, IDRS Research Command Codes, by updating information on requesting NUMIDENT transcripts through IDRS using CC MFTRA with Request Type "U" .

(98) Added ID theft Indicator information to IRM 3.13.5.87, CC ENMOD.

(99) IPU 13U0707 issued 04-09-2013 IRM 3.13.5.93, NUMIDENT File (Requesting Social Security Administration (SSA) Taxpayer Application Information), by updating information on requesting NUMIDENT transcripts through IDRS using CC MFTRA with Request Type "U" .

(100) IPU 12U1929 issued 12-12-2012 IRM 3.13.5.95, CCs DTVUE and DM1DT, by requiring that TAS provide a SSA Form 2458 to any requests for the removal of an erroneous DOD.

(101) IPU 12U1740 issued 10-17-2012 IRM 3.13.5.106, Master File Freeze Codes, by removing some of the freeze codes that are not directly impacted by address and/or name changes and other Entity type changes.

(102) IPU 12U1819 issued 11-09-2012 IRM 3.13.5.116, Taxpayer Identification Number (TIN) Changes (generates a TC 011), to clarify TIN changes when taxpayers file married filing jointly.

(103) IPU 12U1819 issued 11-09-2012 IRM 3.13.5.117, Merging Taxpayer Accounts (ITINs, SSNs and IRSNs), to clarify TIN changes when the taxpayers file married filing jointly.

(104) IPU 12U1740 issued 10-17-2012 IRM 3.13.5.117, Merging Taxpayer Accounts (ITINs, SSNs and IRSNs), by revising para (14) for consistency purposes.

(105) Revised IRM 3.13.5.118, Changing/Correcting a Taxpayer's Name, added further clarification on when to make a name change and complete research before changing and/or correcting taxpayers names. Added parens (8) through (12) from IRM 3.13.5.118.3 to this tridoc to become new parens (5) through (9). Moved Figure 17 to this tridoc also. Added information on how to enter a taxpayer name if the taxpayer only provides one name.

(106) Added new tridoc, IRM 3.13.5.118.1, Determining the Use of CCs IRCHG/INCHG for Name Corrections/Changes. This clarifies what happens to the taxpayers account when CCs IRCHG or CC INCHG are used to complete a name change on the valid and invalid side of IMF.

(107) Revised IRM 3.13.5.118.4, Guidelines for Determining Spanish Names and Name Controls, by adding new examples with multiple last names and removed information regarding mother and father surnames.

(108) IPU 13U0218 issued 01-28-2013 IRM 3.13.5.118.4, Guidelines for Determining Spanish Names and Name Controls by adding an additional example.

(109) Removed formerly numbered IRM 3.13.5.118.4, Correcting Taxpayer Names without Documentation. This information was contained in other areas within the IRM and contained taxpayer name matching criteria against the SSA name control information. The signature of a taxpayer is not the basis for making a name change unless the IRS made an error in transcription. In these instances, a name change is completed and is not based on the taxpayer signature alone.

(110) IPU 13U0968 issued 05-21-2013 IRM 3.13.5.122 Domestic Address Changes, added information that the FINALIST program will occasionally abbreviate the street address names.

(111) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.122, Domestic Address Changes, requiring the entering of information in the REMARKS field when completing address using IAT address tool or IDRS within parens (6) and (7).

(112) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.123, Domestic Address Change Procedures for Primary Taxpayer ONLY, requiring the entering of information in the REMARKS field when completing address using IAT address tool or IDRS with paren (2).

(113) Removed formerly numbered IRM 3.13.5.124, Acceptable Abbreviations for Designated Titles, and combined the information into IRM 3.13.5.30, Standard Abbreviations.

(114) IPU 13U0788 issued 04-23-2013 IRM 3.13.5.127, Collection Location Code (CLC) Transfer (Document Code 50) requiring the entering of information in the REMARKS field when completing address using IAT address tool or IDRS within paren (2).

(115) Revised IRM 3.13.5.128, Re-Opening a Master File Account (TC 012), by revising paren (1) and adding a reminder when working cases where the taxpayer is deceased.

(116) Revised IRM 3.13.5.134.3, Correction Procedures for CP54 Notices, by adding the Entity related math errors on the account (Math Errors 604, 610, 605, 654, 667, 701, 702, 741, 743, 745 and 748).

(117) Revised IRM 3.13.5.134.8, CP54 Notices with Unresolved Issues, by adding procedures when the taxpayer does not provide enough information to resolve the invalid condition.

(118) Removed formerly number IRM 3.13.5.135.2, Command Codes for Researching CP54 Cases. Information is contained in IRM 3.13.134.3, Correction Procedures for CP54 Notices.

(119) Revised IRM 3.14.136, Assigning Employer Identification Numbers (EINs) in IMF Entity, by updating the fax number in paren (3) and a telephone number in paren (4).

(120) IPU 13U0510 issued 03-12-2013 IRM 3.13.5.136.8, Sole Proprietors and Schedule H Filers, by adding information on receiving these requests through the receipt of IDRS prints.

(121) IPU 13U0492 issued 03-08-2013 IRM 3.13.5.140, Glossary of Terms, by adding new items to the glossary.

(122) IPU 13U0492 issued 03-08-2013 IRM 3.13.5.141, List of Terms and Abbreviations, by adding new abbreviations.

Effect on Other Documents

IRM 3.13.5 dated October 10, 2012 (effective January 1, 2013) is superseded. The following IPUs, issued from September 27, 2012 through September 2013, have been incorporated into this IRM: 12U1627, 12U1663, 12U1740, 12U1782, 12U1806, 12U1819, 12U1840, 12U1870, 12U1894, 12U1929, 12U195, 13U0008, 13U0218, 13U0265, 13U0289, 13U0311, 13U0354, 13U0406, 13U0453, 13U0492, 13U0510, 13U0586, 13U0707, 13U0730, 13U0788, 13U0968, 13U1148, 13U1360, 13U1374 and 13U1422.

Audience

Wage & Investment--Submission Processing--Entity Control and Entity Unpostables; Wage & Investment--Accounts Management--Telephone Assistors.

Effective Date

(01-01-2014)

/s/ Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.13.5.1  (01-01-2014)
IMF Entity Overview

  1. The instructions contained in this handbook are used for establishing, changing, maintaining, and/or perfecting individual taxpayer accounts on the Individual Master File (IMF). Use the instructions outlined in this handbook to make changes to the "Entity Section" of an account on IMF.

  2. Providing instructions that will cover all combinations of changes that might appear on a given case is not possible. Therefore, where procedures are given for a specific situation (e.g., name change) and if the case requires other changes, make all changes necessary to "perfect" the account.

  3. Reference is made throughout this IRM to other IRMs for more detailed information on how to use Integrated Data Retrieval System (IDRS) and Integrated Automation Technologies (IAT) tools. IAT tools interact with IDRS to automate case work. If IDRS is down, neither AMS nor IAT will function. This IRM must be used in conjunction with other IRMs to fully resolve tax account related issues.

  4. This IRM provides general instruction as well as information specific to the form or document you are processing. In all cases, the specific information under the subsection for that form or document take precedence over the general instructions.

  5. The IAT provides tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes. IAT eliminates repetitive typing and making precise decisions. The use of IAT is preferred if an IAT tool is available. See the IAT web site for a list of available tools and User Guides. Appropriate research will be completed using CCs NAMEE, NAMEB, NAMES, NAMEI, FINDE, FINDS, etc.

  6. Leave an Action/Audit Trail on all documents by editing actions taken accurately on the left margin of any document where actions taken/updates are completed by the TE. If your campus uses a "TE" stamp, this is part of the action/audit trail.

    Note:

    When the TE completes IDRS/IAT and other forms of research and uses a variety of Command Codes, they are not required to list every Command Code used during research.

  7. Edit the following on any detached form or notice if the information is not present on the document:

    • Detached item description (i.e., Detached Form 1040A)

    • Taxpayer's name

    • Taxpayer's Identification Number (TIN) (e.g., Social Security Number (SSN), IRS Taxpayer Identification Number (ITIN), Internal Revenue Service Number (IRSN)

    • Tax Examiner (TE) stamp (if used in your campus).

  8. See IRM 3.13.5.140 for the Glossary of Terms.

  9. See IRM 3.13.5.141 for List of Terms and Abbreviations.

  10. See Document 11426, IRS Correspondence Manual, for more information on the guidance and procedures for the preparation of IRS and Department of Treasury correspondence.

  11. The following IRMs are useful when working in the Entity Control Unit (ECU):

    • IRM 1.4.16, for information on Control-D WebAccess (CTDWA) to view and/or print reports electronically.

    • IRM 1.15.29, Records Control Schedule for Submissions Process Campus Records

    • IRM 2.3.8, Standard Validity Criteria

    • IRM 2.3.9 Security Command for IDRS Users

    • IRM 2.3.10, Command Codes MFREQ and RECON

    • IRM 2.3.11, Command Codes TXMOD and SUMRY

    • IRM 2.3.12, Command Code ACTON

    • IRM 2.3.15, Command Code ENMOD

    • IRM 2.3.25, Command Codes DM1DT and DTVUE

    • IRM 2.3.37, Command Code UPTIN for the GUF System

    • IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ

    • IRM 2.3.51, Command Code IMFOL

    • IRM 2.3.59, Command Codes BMFOL and BMFOR

    • IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP

    • IRM 2.3.71, Command Code ATINQ

    • IRM 2.3.73, Command Codes TRDBV, TRERS, TRPRT, and R8453

    • IRM 2.4.4, Command Code MESSG

    • IRM 2.4.6, Command Codes LETER, LPAGD, LETUP, LETED, LLIST and LREVW

    • IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG

    • IRM 2.4.13, Command Code TERUP

    • IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A

    • IRM 2.4.59, Command Code TMSSN

    • IRM 3.0.273, Administrative Reference Guide

    • IRM 3.5.10, Remittance Transaction Research (RTS) System

    • Campus Mail and Work Control - Batch/Block Tracking System (BBTS)

    • IRM 3.5.61, Files Management and Services

    • IRM 3.10.5, Batch/Block Tracking System (BBTS)

    • IRM 3.10.72, Receiving, Extracting, and Sorting

    • IRM 3.12.32, General Unpostables

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.13.12 Exempt Organization Account Numbers

    • IRM 3.13.36 EPMF Account Numbers

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS)

    • IRM 3.24.3, Individual Income Tax Returns

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates

    • IRM 4.10.12, Frivolous Return Program

    • IRM 10.5.1, Policy, Roles and Responsibilities

    • IRM 10.5.3, Identity Protection Program

    • IRM 10.5.4, Incident Management Program

    • IRM 21.5.6, Freeze Codes

    • IRM 21.7.13, Assigning Employer Identification Numbers (EINs)

    • IRM 25.6.1, Statue of Limitations Processes and Procedures

  12. The following information is useful for correcting and researching taxpayer accounts:

    • International; Submission Processing; IMF Foreign Address Job Aid, 2513-703

    • IMF Entity Job Aid, 2430-003

    • Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers

    • Document 7071-A, BMF Name Control Job Aid

    • Document 6209, IRS Processing Codes and Information.

3.13.5.1.1  (01-01-2014)
Taxpayer Advocate Service (TAS)

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

  2. While the IRS is continually working to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Per IRC § 7803(c), Congress established the Office of the Taxpayer Advocate, lead by the NTA and its functions within the IRS to assist these taxpayers. TAS has identified criteria that qualify taxpayers for TAS assistance. The Case Advocate will conduct an independent review of actions that have been taken or need to be taken to resolve the problems taxpayers are experiencing.

  3. Employees should not view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

3.13.5.1.1.1  (01-01-2014)
Referring Cases to TAS

  1. 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, Taxpayer Advocate Service (TAS) Case Criteria, and you can’t resolve the taxpayers 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 taxpayers 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, Taxpayer Advocate Service (TAS) Case Criteria, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward it to TAS in accordance with your local procedures. Check the TAS box on Accounts Management Services (AMS), if applicable.

    Note:

    It is important that all IRS employees handle potential TAS cases with the taxpayers best interest in mind. Refer also to IRM 21.1.3.18, Operational Guidelines Overview, Taxpayer Advocate Service (TAS) Guidelines, for more information. Provide the taxpayer with the number for the NTA toll-free case intake line, 1-877-777-4778 or TTY/TDD 1-800-829-4059. The taxpayer should be advised that TAS is available if the taxpayer is not satisfied with the service he or she received.

  2. An IRS employee should make a referral to a TAS office if the employee receives a taxpayer contact, and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer if it is needed to support the requested relief, or required by the IRM.

  3. The following types of cases should NOT be referred to TAS:

    1. Cases where the taxpayers complaint or inquiry only questions the constitutionality of the tax system, or;

    2. Cases where the focus of the taxpayers inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

3.13.5.1.1.2  (01-01-2014)
Taxpayer Advocate Services (TAS) Service Level Agreements (SLAs)

  1. The National Taxpayer Advocate and the Commissioner, Wage and Investment (W&I) have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the W&I Division. The agreement is known as a Service Level Agreement (SLA).

  2. In preparation for a case to be referred to a W&I Division function, the TAS employee is responsible for the following:

    1. Preparing Form 12412, Operations Assistance Request.

    2. Securing all necessary supporting documentation.

    3. Identifying cases that require expedite processing. No case will automatically receive expedite processing; requests for expedite processing will be made on a case-by-case basis.

    4. Forwarding Form 12412 and documentation to the W&I Business Unit Liaison.

  3. The W&I Division is responsible for:

    1. Assigning a liaison in each office or Campus where a Taxpayer Advocate is located.

    2. Acknowledging receipt of the case within one (1) workday for cases requiring expedite processing or within three (3) workdays for all other cases.

    3. Responding to TAS within three (3) workdays in writing, via facsimile, secure messaging E-mail, or hand delivery of resolution.

    4. Providing TAS with the name and telephone number of the W&I group manager or employee assigned the case.

    5. Determining a reasonable time frame for case resolution.

    6. Upon closing of the Operations Assistance Requisition (OAR), the W&I employee assigned the OAR will complete Section VI of Form 12412, Operations Assistance Request and return it to the TAS employee assigned the case. The Form 12412 must be returned within three (3) workdays from the date that all actions have been completed and transactions input.

  4. For further information, refer to the W&I SLA online at http://tas.web.irs.gov/policy/sla/default.aspx under the heading "Policy/Procedures/Guidance."

3.13.5.1.2  (01-01-2014)
IRS Employee Contact--Restructuring and Reform Act (RRA) Section 3705(a)

  1. The Restructuring and Reform Act 1998. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on the taxpayers answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail, which 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.

  2. All IRS employees are required to provide (at a minimum) the following information:

    • Your title (e.g., Mr., Mrs., Ms., Miss),

    • Your last name

    • Your Identification Card (badge) Number.

  3. All correspondence must include a telephone number where the taxpayers question can be answered. In addition, manually generated and handwritten correspondence must include the following information:

    • Your title (e.g., Mr., Mrs., Ms., Miss),

    • Your last name

    • Your Identification Card (badge) Number.

  4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the ID card (badge) number must be used.

  5. When a taxpayer requests to speak with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayers inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

  6. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  7. It is not necessary to repeat the ID card number (badge) on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) their ID card (badge) number on the first contact.

  8. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayers answering machine, review IRM 11.3.2.6.1 Leaving Information on Answering Machines/Voice Mail.

3.13.5.1.3  (01-01-2014)
Ethics Awareness

  1. The integrity and dependability of all employees is crucial to accomplish the Service's mission. All contacts made with the public shall reflect the Service's high ethical standards and quality performance.

  2. Employees having access to and working with return information and data must not:

    • Alter data,

    • Disclose information to persons except as authorized by the Internal Revenue Code (IRC),

    • Use the data for unauthorized purposes,

    • Make unauthorized or unnecessary access (browsing) to taxpayer data, or

    • Engage in financial transactions using non-public information to further their own private interests or that of another, nor use their public office for private gain in any way.

3.13.5.1.4  (01-01-2014)
Taxpayer Browsing Protection Act

  1. The Taxpayer Browsing Protection Act is the unauthorized access, attempted access or inspection of taxpayer records (UNAX) program. Willful unauthorized access or inspection of taxpayers records is a crime, punishable upon conviction, by fines, imprisonment, and termination of employment. Taxpayer records include hard copies of returns and return information, as well as returns and return information maintained on a computer. Unauthorized access or inspection is looking or accessing tax records that are not necessary to complete official IRS duties as assigned by management.

  2. If in doubt, discuss it with your supervisor. Your supervisor will provide an answer or refer the question to the Disclosure Office. The telephone number to contact Disclosure is (866) 591-0860 or concerns or questions can be sent to Disclosure to the email address of ⋆Disclosure.

  3. Direct any other problems concerning disclosure matters (Privacy Act, Freedom of Information Act, IRC Section 6103, etc.) to the Disclosure Manager.

  4. Any employee who has knowledge of an actual or suspected unauthorized access (UNAX) violation, must immediately contact the local Inspector General Special Agent, or call the Treasury Inspector General for Tax Administration (TIGTA) Hotline at 1–800–366–4484.

  5. For additional information regarding unauthorized access (UNAX), refer to IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program or the Supplemental Guide for IRS' Awareness Briefing on Unauthorized Access-UNAX for additional information, or contact the Privacy, Governmental Liaison and Disclosure UNAX Program Office via email at *UNAX. The UNAX website is as at the following email address http://irweb.irs.gov/AboutIRS/bu/pipds/pip/privacy/privacy_art/8352.aspx or contact the UNAX Program Office, PGLD at 202 283-UNAX.

3.13.5.1.5  (01-01-2014)
Processing Time Frames for the Entity Control Unit (ECU)

  1. Process the following forms and taxpayers' correspondence within established time frames. The established time frames are prescribed in IRM 1.15.29, Records Control Schedule for Submissions Process Campus Records.

  2. See IRM 3.30.123, Processing Timeliness, Cycles, Criteria, and Critical Dates, for the established processing time frames. All time frames start from the IRS received dates, unless otherwise specified.

3.13.5.1.6  (01-01-2014)
Batch Requirements

  1. Incoming mail and cases are either:

    1. Delivered to the ECU clerical support area or,

    2. Picked up by an ECU designee from the appropriate area(s) on at least a daily basis.

  2. The batch requirements/categories may, at a Submission Processing Campus' option, be expanded.

  3. While categories are assigned, if you determine an item belongs in another category, sort as appropriate.

  4. An example is IMF correspondence other than address changes:

    If... Then...
    Correspondence clearly gives information concerning a frozen refund, Categorize the items for a fourteen-calendar day period.

  5. At a Submission Processing Center's (SPC's) option, each sort category may be sub-sorted. An example is a CP54 that can be sub-sorted to:

    • Name changes

    • Taxpayer Identification Number (TIN) changes

    • No changes

    • Combination changes, etc.

  6. The sorter must be experienced concerning TAS cases that are forwarded on a Form 12412. Any item meeting the TAS criteria must be referred to the manager (or a designee) to expedite handling.

3.13.5.1.6.1  (01-01-2014)
Batch Size

  1. Batch sizes must be based on the volume typically received. The largest volumes received are CP notices. Other types of cases are received in smaller volumes. Therefore, holding a group of Form 2363 all day to achieve a batch size of "100" is not advised.

  2. Small batches of cases allow a better distribution of the work within the ECU. In addition, special circumstances may dictate that batch sizes are smaller than prescribed in these guidelines.

  3. Although not required, it is recommended to combine partially worked batches of similar cases with the same due dates. This will result in reduced inventories.

  4. Being able to identify types of work and the working schedule without having to look at each individual batch is important. A suggested method is to use colored folders for the batches of work.

  5. Some cases are hand-carried to the manager or a designee. Examples of these cases include:

    • Unpostables

    • Rejects

    • Returns

  6. It is the manager's responsibility to ensure the correct batching of the Entity cases with the appropriate working time frames as prescribed in IRM 3.13.5.1.3.

3.13.5.1.6.2  (01-01-2014)
Batch Work

  1. Take the following actions.

    If... Then...
    During a given week, work was batched under an incorrect category, Move the batch to the correct category, but only during the initial week.
    Work is batched under a given category and some items within the group must be suspended (or even the entire batch), Do not move the batch to a category with a longer aging criteria.

  2. It is recognized that in certain situations cases cannot always be corrected within the established time frames or guidelines. However, by aging the cases instead of changing categories, the yearly receipts will not be inflated.

  3. When cases are suspended for correspondence, research, documents, etc. and the information is not received, do not close the cases and reopen with a new received date.

3.13.5.1.7  (01-01-2014)
Accounts Management Services (AMS) Entity Transcripts

  1. AMS delivers Entity transcripts electronically and is replacing the printed paper forms. The data is extracted and sorted by a computer program and cases are loaded into the system as inventory items. The system will automatically assign inventory cases to employees based on their skill codes and the number of cases in inventory. The Entity or Unpostable manager, lead or clerk may also manually assign transcript inventory to employees in their unit.

  2. Assigned and unassigned cases will reside on AMS. The reports to track Entity's transcript inventories are also available on AMS.

3.13.5.1.8  (01-01-2014)
Requesting Taxpayer Information

  1. Requests for taxpayer information:

    1. When requesting taxpayer information, a specific requested response time must be given. The taxpayer must be informed of the consequences of non-receipt or untimely receipt of the requested information (in plain, polite language). Example: Non-receipt or untimely receipt of the requested information could delay the receipt of your refund or any future correspondence with the IRS

    2. If the information is for domestic cases (generally allow 30 days plus 10 days purge time if the information is not received in the allotted time), leave an audit trail with no reply in comments.

    3. If the information for overseas correspondence is not received in the allotted time (70 days), leave an audit trail with no reply in comments.

    4. A request should be made for a telephone number and the times most convenient to call.

    5. Include your employee badge number on all requests.

  2. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  3. Whenever possible, IDRS "C" letters must be used to correspond with taxpayers.

    Note:

    Be sure the letter clearly expresses the message in simple language.

    If... Then...
    Inquires are received from persons living abroad about where to apply for a TIN, Correspond and direct them to the nearest U.S.A. Embassy or Consulate.

  4. Instructions throughout this manual refer to written correspondence. At each SPC's option if a phone call can resolve the situation, this method may be used.

    Caution:

    In all taxpayer telephone contact, care must be taken to ensure that the IRS employee is actually communicating with the taxpayer or his/her authorized representative. Adequate disclosure probes/procedures must be conducted on every call. If necessary, see IRM 11.3.2, Disclosure to Persons with a Material Interest.

  5. When contacting a taxpayer by telephone, you must use the authentication disclosure procedures found in IRM 21.1.3.2.4, Operational Guidelines Overview, Required Taxpayer Authentication.

    Caution:

    Generally, tax information protected by IRC Section 6103 may NOT be left on an answering machine or voice mail.

  6. Exceptions to this guideline are shown in IRM 11.3.2.6 and include:

    • Where the taxpayer has specifically requested that information be left on their answering machine/voice mail

    • The taxpayer has stated that they are the only one with access to the answering machine/voice mail, and

    • There has been positive identification of the number reached by the IRS employee using the standards above or through prior agreement of the taxpayer.

3.13.5.1.9  (01-01-2014)
Timeliness Guidelines

  1. Timeliness guidelines for working taxpayer correspondence are outlined in IRM 1.15.29, Records Control Schedule for Submissions Process Campus Records. Periodic review of the correspondence inventory is required to ensure the timeliness requirements are being met as outlined in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. A reporting system must be established to alert management to any problems.

  2. Unnumbered amended returns (e.g., 1040X, 1120X, etc.) although not included in the definition of taxpayer correspondence must be processed following the guidelines in IRM 1.15.29, Records Control Schedule for Submissions Processing Campus Records.

3.13.5.1.10  (01-01-2014)
Receipt of Erroneous Taxpayer Forms, Payments and Correspondence

  1. If the ECU receives "original" and/or copies of tax returns (Forms 1040, 1040A, 1040EZ, etc.) submitted with any Entity requests (CP54s, Form 56s, etc.), detach the tax return. Research for a posted TC 150 for the tax year of return.

    1. If a TC 150 is posted, forward to the 1040X unit

    2. If the TC 150 is not posted, forward to Receipt & Control (R&C) for original processing.

  2. Taxpayers may forward payments/correspondence to an incorrect campus. They may also send address changes to the address on the mail packages from the Regional Disbursing Center (RDC).

  3. The RDC has instructions to forward this mail to the appropriate SPC that services the particular taxpayer.

  4. Address changes will be completed in the receiving SPC provided all the necessary information is available.

    Note:

    Forms 8822 and 8822-B will be worked in the campus where they are received. See IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG and IRM 3.13.2, BMF Account Numbers, and Figure 3.13.2-26. If assistance is needed from a BMF site, make telephone contact then fax the information if necessary.

  5. Name change requests must be completed in the receiving SPC provided if enough information is available.

  6. For requests other than address and name changes, decisions must be made to decide if enough information is available to work the request or route the request to the responsible business area.

  7. TIN changes must be transshipped due to the possibility of scrambled TINs, adjustment control cases, pending audits, etc.

  8. If the taxpayer does not provide enough information to process the request or there is not enough information available, transship to the appropriate SPC.

  9. However, once your SPC begins the case, it must be completed unless another campus agrees to accept the case.

    Note:

    When the acceptance agreement is reached, the transmittal must include the names of the employees agreeing to the acceptance and the sender's name.

3.13.5.1.11  (01-01-2014)
Receipt of Form 1040 Series Returns with an Individual and/or Business Name and an EIN

  1. Entity will receive Form 1040 series returns (Forms 1040/1040A/1040EZ/1040X) from Code & Edit (C&E) to determine if the taxpayer has a "Single Member" or "Sole Member" Limited Liability Corporation (LLC) filing requirement or if the IMF tax return is a duplicate filing.

  2. Use CCs NAMES, NAMEE, IMFOLT, BMFOLE, INOLES, TXMOD, etc. to research the taxpayers account.

    Note:

    A single member or sole member LLC account will contain the words "SOLE MBR" or "SINGLE MBR" within the Sort Name line as shown on CC INOLES.


    CC BMFOLE will display the LLC indicator on Line 14 of the screen display.

    If... And... Then...
    a. Entity DOES NOT locate a SSN for the taxpayer   1. Use the Form 4227 and notate "No SSN located/Cleared by Entity" .
    2. Return the document to C&E using the Form 4227.
    b. the taxpayer has a single/sole member LLC filing requirement and the taxpayer filed with Schedules C and/or F
    1. Use the Form 4227 and write the taxpayers SSN and "Single Member LLC" and notate the return is "Complete/Cleared by Entity" for processing.

    Note:

    The return is determined to be complete because taxpayer included necessary Schedule (Sch). C and/or Sch F.


    2. Return the case to C&E using the Form 4227 and include the SSN.
    c. taxpayer DOES NOT have an LLC filing requirement   1. Use the Form 4227 and notate "No LLC Filing Requirements/Cleared by Entity" .
    2. Return the document to C&E using the Form 4227.
    d. Entity locates a TC 150 for the same tax period (shown through CC IMFOLT) SSN is found 1. Write the taxpayers SSN and "Possible Form 1040X" on the Form 4227.
    2. Forward the case to the 1040X Unit using the Form 4227.

3.13.5.2  (01-01-2014)
Correspondence

  1. Entity Control receives a variety of correspondence (letters, cards, notices, etc.) for processing.

  2. Clerks in the ECU are responsible for sorting all incoming correspondence. Clerks must examine all taxpayer correspondence and attachments.

    If... Then...
    taxpayer sends an original document(s) with their letter (e.g., "Social Security Card" , Marriage Certificate, Divorce Decree, etc.), the clerk/TE must prepare a Form 14219, Return of Documentation to the Taxpayer, and return the original item(s) to the taxpayer on a daily basis.

  3. Copies of documents with correspondence must remain with the correspondence.

  4. Copies of documents without correspondence are handled at the Submission Processing Campus (SPC) discretion.

  5. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  6. Taxpayer Correspondence is governed by the guidelines in IRM 1.15.29, Records Control Schedule for Submissions Processing Campus Records. Correspondence with the taxpayer is necessary for the following conditions:

    1. Written communication is received in response to an IRS request(s) for information or data.

    2. Written communication is received from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited.

    3. Written communication, including annotated notice responses, is received that provides additional information or disputes a notice.

    4. Written communication is received which requests information, including any accompanying tax returns.

  7. Taxpayer Inquiries:

    1. When responding to a taxpayer inquiry use language such as the following: "This is in reply to your correspondence of (date)," and provide an explanation of the action(s) taken even if they are exactly what was requested by the taxpayer. Use the appropriate "Correspondex letter" .

      If... Then...
      Action has not been completed in 30 days, An interim reply will be sent to inform the taxpayer as to when we expect to complete the required action(s).
      Final answer cannot be provided by the estimated deadline date contained in your interim response, Contact the taxpayer on or before the deadline and provide a reason and new estimated closure date.
      Additional correspondence is anticipated or requested, Request the taxpayers telephone number and the hours most convenient to call.

  8. Enter the correspondence date in the following priority:

    1. Use the date the taxpayers correspondence was prepared or signed

    2. Use the envelope postmark date

    3. Use the IRS received date and subtract three days to compute the correspondence date

    4. Use the current date

  9. The generation of taxpayer letters to only acknowledge the receipt of their information is not required.

  10. When providing the taxpayer with a contact number, provide a toll free number whenever one is available. The telephone numbers are as follows:

    • 800-829-0922 for IMF taxpayers with a Wage and Investment (W&I) Indicator

    • 800-829-0115 for Business Master File (BMF) taxpayers

    • 800-829-8374 for IMF taxpayers with a Small Business/Self Employed (SBSE) Indicator

    • 1-267-941-1000 for International taxpayers. (This number is used by taxpayers who are outside the U.S. because these International taxpayers do not have a toll free number available)

    Note:

    The telephone numbers listed above are not provided to taxpayers through direct contact such as customer service sites.

    Reminder:

    The taxpayers Business Operating Division (BOD) filing requirements varies based on their filing history.

  11. Use the following methods to determine the taxpayers BOD:

    Use Method
    CC LPAGE* taxpayer information displays beside the BOD field
    CC TXMOD taxpayer information displays beside the BOD-CD field
    taxpayers account established with an Employer Identification Number (EIN) use the 800-829-0115 toll free number for BMF taxpayers
    * On CC LPAGE if the taxpayers account is NOT on the National Account Profile (NAP), NOBOD will display beside the BOD field.

  12. Some programs and functions have their own toll free numbers and the toll free numbers are as follows:

    Estate and Gift 1-866-699-4083
    Excise 1-866-699-4096
    Tax Exempt/Government Entities (TE/GE) Accounts 1-877-829-5500
    Taxpayer Advocate Service (TAS)
    TAS TTY/TTD
    1-877-777-4778

    1-800-829-4059

3.13.5.3  (01-01-2014)
Use of Fax Signatures

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. C&E tax examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

3.13.5.4  (01-01-2014)
Spanish Computer Letters

  1. When using any Spanish version computer letter or a pre-printed letter that requires the entry of the date, the spelling of the month must also be in Spanish. The date and month must also be shown in the manner used by Spanish language users (i.e., date, month and year.) The date and month and the month and year are to be separated by the word "de" instead of a comma.

  2. Pertinent Spanish information is listed in the following table:

    Enero (January) Julio (July)
    Febrero (February) Agosto (August)
    Marzo (March) Septiembre (September)
    Abril (April) Octubre (October)
    Mayo (May) Noviembre (November)
    Junio (June) Diciembre (December)
    Example: May 5, 2007, is written 5 de Mayo de 2007.

3.13.5.5  (01-01-2014)
Frivolous Return Program (FRP)

  1. Identification of frivolous filing can be made in any campus by any employee. However, many of the cases are identified and have been reviewed prior to being received in the ECU.

    Note:

    When the initials "FRP" are shown in the upper left corner of the document, notice, return etc. continue processing the case. These initials indicate that the FRP area has reviewed and cleared the document.

  2. If in doubt about whether the return/document is frivolous, consult with your lead or manager. After review by the lead and/or mangers and the ECU observes or identifies any suspicious taxpayer trends or patterns, contact your local Frivolous Return Program Coordinator.

  3. If the documents/returns are forwarded to the FRP, input remarks "FRP to Ogden"

  4. Use the following address to mail information to the FRP:
    IRS
    1973 Rulon White Blvd
    Mail Stop 4450
    Ogden, UT 84201

  5. Detailed information on the Frivolous Return program is contained in IRM 4.10.12, Frivolous Return Program.

3.13.5.6  (01-01-2014)
Duplicate Addresses

  1. If the ECU identifies duplicate address information on multiple Form 8822s, miscellaneous notices or taxpayer correspondence, forward these cases to your local Income & Verification Operations (IVO) area using a Form 3210, Document Transmittal.

    1. If IVO determines the address change is warranted, they will return the cases to the ECU within 10 days for processing.

    2. If IVO determines the address change is not necessary, they will retain the case.

      Note:

      No address change is required by the ECU if the case is retained.

3.13.5.7  (01-01-2014)
Entity Section

  1. The "entity section" on a taxpayers account contains a variety of taxpayer information.

  2. Some of the elements that comprise the IMF Entity are as follows:

    • Primary taxpayers Name

    • Name Control (N/C)

    • Address

    • Taxpayer Identification Number (TIN). See additional information in paren (3) below.

    • Date of Birth (DOB)

    • Spouse's Name

    • Spouse's TIN

    • Filing Status Code (FSC)

    • Name Line Year

    • Fiscal Year Month (FYM)

    • Mail Filing Requirement (MFR).

      Note:

      See IRM 2.3.51, CC IMFOL, for additional information on the applicable MFR codes.

    • The SSA, IRS valid and IMF Name Controls

    • Scrambled Social Security Number (SSN) indicators (XXXSSN)

    • Date of Death (DOD) (if applicable)

  3. The IMF TIN may be a SSN, IRS Individual Taxpayer Identifying Number (ITIN), Internal Revenue Service Number (IRSN) or an Adoption Taxpayer Identification Number (ATIN) (used mostly for dependent processing).

  4. The DOB and Date of Death (DOD) information is obtained from the Social Security Administration (SSA) and through taxpayer contact.

3.13.5.7.1  (01-01-2014)
Establishing & Maintaining the Entity

  1. If the entity information is not properly established or maintained, it will result in:

    • Poor service to the taxpayer,

    • Unnecessary work throughout the SPC

  2. The IMF entity is updated and/or established via IDRS input or through the processing of tax documents such as:

    • Filing of a tax return

    • Receipt of taxpayer correspondence

    • Generation of internally processed documents

  3. The items established by the filing of the return include the following:

    • Primary and/or Secondary taxpayer names

    • Address

    • Primary and Secondary SSNs

    • Filing Status Codes

    • Type of return

  4. To establish an account for a taxpayer through taxpayer correspondence or with an internal document, the TE must enter all the required elements.

    Note:

    When working Statute Year Returns (TY 2009), check for the Cleared Statute Stamp. If the stamp is not on the return, route to Statute Function for clearance prior to processing unless a TIN is not present. If a return requires an IRSN, issue an IRSN before routing to the Statute Function.

    See IRM 25.6.1, Statute of Limitations - Statue of Limitations Processes and Procedures, if needed. See IRM 3.13.2.7.1 for Statute expiration dates.

    Caution:

    Do not route a return to Statute without a TIN. You must issue an IRSN before routing cases to the Statute Unit.

3.13.5.8  (01-01-2014)
Cases Received in IMF Entity

  1. IMF Entity is responsible for researching and correcting taxpayer account(s).

  2. Entity tax examiners receive a variety of work and the following is a partial list of the cases received in the Entity Control Unit (ECU):

    Note:

    This list is not all inclusive:

    • TRNS 37

    • TRNS 43

    • CP54B

    • CP54E

    • CP54G

    • CP54Q

    • Form 2363

    • Form 4149

    • Taxpayer Correspondence

    • Name Changes and Address Changes (taxpayer generated)

    • Scrambled TIN Cases (Adjustment Section-Internal Revenue Service Campus (IRSC))

    • Multiple Filer Cases (Examination Section-IRSC)

    • Unpostables

    • ZIP Error Listing, 757-68-11 for IMF

    • Assigning EINs

    • Insolvency Cases

    • Account Maintenance Research (AMRH) Transcripts

    • Assigning Internal Revenue Service Numbers (IRSNs)

    • Researching Unsigned and Undeliverable mail

3.13.5.9  (01-01-2014)
Customer Account Data Engine (CADE) 2

  1. CADE 2 implemented a daily processing environment for IMF in January 2012.

  2. Several cycles were accelerated when CADE 2 daily processing was implemented. The cycle changes were implemented in all sites. The cycle changes are:

    • Campus Production Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

    • Notice Review: Saturday - Monday (8+ days)

    • Unpostables: New UPCs available Tuesday; closing Tuesday

  3. IMF transactions posting time frames are outlined as follows:

    1. Daily transactions directed to a daily account are expected to post daily with daily processing. Transactions will be viewable using CFOL command codes the second day after campus input. Transactions will be viewable on IDRS command codes the third day after campus input.

    2. Weekly transactions directed to a daily account are expected to post with the weekly processing run on Thursday and may result in the account type changing to Weekly.

    3. Daily and Weekly transactions directed to a Weekly account are expected to post with the weekly processing on Thursday.

      Note:

      TXMOD will reflect "DAILY" in the upper right hand corner on Daily accounts. IMFOL will reflect "DAILY" or "WEEKLY" in the upper right hand corner to identify the type of account.

  4. In January 2013, certain transactions were designated as posting daily. The IMF entity transactions TC 013, TC 014, and TC 015 will post daily to weekly accounts, unless there are other previous transactions already resequencing to post for the cycle.

  5. BMF transaction posting time frames are outlined as follows:

    • Transactions will be viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master Files processing run on Thursday.

    • Transactions will be viewable as posted transactions using IDRS command codes on Monday, following the weekly Master File processing run on Thursday.

    • With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  6. Cycle posting dates will reflect a format of YYYYCCDD.

    • YYYY will indicate the year.

    • CC will indicate the posting cycle.

    For IMF transactions, the values for DD are as follows:

    • 01 - Friday

    • 02 - Monday

    • 03 - Tuesday

    • 04 - Wednesday

    • 05 - Thursday

    BMF posting cycles on CC BMFOL will continue to reflect YYYYCC

    • YYYY will indicate the year.

    • CC will indicate the posting cycle.

    BMF posting cycles in CC TXMOD will reflect a format of YYYYYCCDD. The value for DD will be 08.

3.13.5.10  (01-01-2014)
Document Locator Number (DLN)

  1. The DLN is a number assigned to every return or document input and is used by the IRS to control, identify, and locate documents. The fourteenth (last digit) is the year of processing and is assigned by the campus computer at the time of the original input.

  2. The following is an example of an DLN:

    File Location Code (FLC) Tax Class Doc. Code Julian Date Block Series Serial No. List Year
    89 2 10 105 600 25 9

  3. All transactions containing an address change require the TE to enter the requestor's name, title (if applicable) , and phone number (if present) in the REMARKS field when using IAT address tool or IDRS.

  4. Employees working in the ECU must use an "8" in the BLK-SERIES-IND field of CC INCHG if the IAT system is not available at your campus.

    Note:

    When an 8 is entered, a numerical range of 800 through 979 will post in the block series of the posted DLN. This clearly identifies the transaction codes that were entered by the ECU.

    Exception:

    Do not use an "8" in the block series indicator field when entering a Transaction Code (TC) 040, TC 041 or completing an address change using AMS.

3.13.5.11  (01-01-2014)
Valid and Invalid Segment of the IMF

  1. The IMF is structured into two segments "valid and invalid."

  2. IRS invalid IMF taxpayer accounts display with an asterisk (*) immediately following the taxpayers TIN. See IRM 3.13.5.25 for additional information.

  3. IRS valid IMF taxpayer accounts display without an asterisk after the taxpayers TIN.

  4. The taxpayers TIN/Name Control is determined to be VALID when it matches specific name controls displayed on CC INOLES.

    The DM-1 files are updated four times a year and are completed in January, April, July, and November.
    The specific quarterly update cycles are 05, 15, 31, and 44.

    Note:

    A taxpayer may have a valid SSN assigned by the Social Security Administration, but their account could reside on the "invalid" segment of the IMF due to a TIN/Name Control Mismatch.

3.13.5.11.1  (01-01-2014)
IMF Segmentation of Valid/Invalid Accounts

  1. The IMF is segmented according to TIN validity. Valid TINs reside on IMF in TIN sequence order followed by invalid TINs in TIN sequence order.

  2. It is possible for two or more different taxpayer accounts to reside on IMF under the same TIN. See the examples below:

    • One taxpayer account resides on the valid side/segment of the IMF.

    • A different taxpayers account resides on the invalid side/segment of IMF.

    • Three different taxpayers residing on the invalid side/segment of the IMF and a different taxpayer resides on the valid side/segment of IMF.

    Note:

    Look for possible scrambled TIN conditions.

    See IRM 3.13.5.25 for more information on scrambled TIN information.

  3. The same taxpayer can reside on IMF on the both valid and invalid segments of IMF as shown in the examples below:

    • The taxpayer has filed with different names in different tax periods (example: JONE 2011 and SMIT 2012).

    • The taxpayer has reported one name to SSA; but filed their return with a different name.

  4. The IRS conducts "proximal matches" on name controls in an attempt to match taxpayers name on the DM–1 File. See IRM 3.13.5.13 for additional information. If a proximal match is obtained, the entity information is coded "VALID."

3.13.5.11.2  (01-01-2014)
Common Causes for Invalid IMF Cases

  1. One of the most common reasons for taxpayer accounts to reside on the invalid segment of IMF is when a taxpayer files using a name and/or Name Control that does not match the VALID name(s) that are displayed on NAP (as shown on CCs INOLES/INOLET). Name Controls received from the following sources:

    • Social Security Administration (SSA)

    • ITIN processing

    • ATIN processing, and;

    • IRS Validation processing

  2. The following helps to demonstrate how taxpayer name changes cause IMF invalid taxpayer account conditions:

    1. SSA/ITIN has only one name listed for a taxpayer and the taxpayer files with the IRS using a different name:

      SSA application or ITIN (card) shows: SSA/ITIN DM-1 name control: IRS Tax Return and name control:
      Allison Jones Jones (Jone) Allison Smith (Smit)

    2. SSA has only two surnames listed for the taxpayer and the taxpayer uses a different surname when they file their return/payment.

      SSA application (card) shows: SSA DM-1 name control(s): IRS Tax Return submitted:
      Allison Jones Jones (Jone) Allison Smith (Smit)
      Allison Smith Jones (Jone)
      Smith (Smit)
      Allison Brown-Jones (Brow)

  3. Other causes for an invalid taxpayer account may be due to:

    • Marriage, divorce, or legal name changes

    • Transcription errors made by the IRS

    • Taxpayer(s) using another taxpayers TIN or Name

    • Family members using other family member's SSNs in error

    • Taxpayers reporting their SSN incorrectly

    • Input errors by SSA and the ITIN department

3.13.5.12  (01-01-2014)
Secondary Taxpayer Invalid SSN

  1. When a taxpayer files married filing joint (FSC 2), the secondary taxpayer is the taxpayer whose name appears on the second name line of the Form(s) 1040. The Secondary SSN account may reside on the invalid segment of IMF due to the following situations:

    name line does not match the Valid name controls shown on CC INOLE
    secondary SSN is invalid when matched against the DM-1 File
    secondary taxpayer files using a new/different surname with their return, payment, or declaration (TC 430)
    taxpayer names on the tax return are reversed from their previous years filing pattern
    DM-1 Quarterly merge has not occurred

    Note:

    Invalid SSN conditions are denoted with an asterisk (*) after the SSN.

  2. If either taxpayer files their IMF Tax Return (FSC 2) and an invalid SSN condition exists, their personal exemption and/or EITC is not allowed.

  3. When a taxpayer files a joint return and they file using their married name (surname of their spouse) and did not contact SSA with an update, an invalid condition occurs.

  4. Do not make changes to taxpayers account(s) or name(s) if the information they supplied does not match the information gathered through research. Correspond or communicate with the taxpayer and advise them to contact SSA to validate their name/SSN.

    Note:

    It must be noted that some taxpayers will complete the notice by communicating that their card still reflects their birth name, prior name(s), an adoptive name line, etc. and signs the notice including this name and/or prior names. Do not change the Master-File based information without the receipt of legal documentation as proof.

3.13.5.13  (01-01-2014)
Proximal Match on IMF Name Control

  1. IMF completes a proximal match on taxpayers Name Control (N/C) and their TIN if it determines a mismatch condition. In order for IMF to obtain a "proximal match" on the taxpayers IMF N/C and TIN, the following conditions must be met:

    If... And... Then...
    First letter of the IMF N/C matches the first letter of name control(s) found on DM-1 associated with this TIN Any two letters are equal to the same two relative positions of the NC(s) found on DM-1.
    OR
    Any two adjacent positions when interchanged, are equal to the same two relative positions of the NC(s) found on DM-1 and the remaining position of IMF NC is equal to the same relative position found on the DM-1.
    Proximal Match occurs

  2. The proximal match process corrects typographical errors.

3.13.5.14  (01-01-2014)
Data Master One (DM–1) File

  1. The DM–1 file is a database of name controls and associated TINs received from these four sources:

    Social Security Administration (SSA)
    IRS processing
    IRS Individual Taxpayer Identification Number (ITIN) File
    ATIN (Adoptive Taxpayer Identification Number) File

    Note:

    The ITIN and ATIN processing is completed at Austin Submission Processing Campus (AUSPC).
    The ATIN and ITIN taxpayer information is sent forward DAILY. However, these taxpayer accounts will initially reside on the invalid segment.
    The new ATINs, ITINs, IRS Valid and the new SSA Accounts will be directed to the invalid side of IMF.
    These new accounts WILL NOT validate or attempt to post to the valid side of IMF until after completion of the next quarterly merge.

    Reminder:

    The DM-1 quarterly updates are done in January, April, July, and November of each year.
    The quarterly merges are scheduled in cycles 05, 15, 31, and 44.

  2. The DM–1 also receives weekly updates from the SSA and the IRS processing.

  3. Programming determines the validity of the data on the DM–1. It "directs" transactions to either the valid or the invalid segment of the IMF.

    1. Transactions that match the TIN/Name Control on the DM–1 File are directed to the valid segment of the IMF for posting.

      Note:

      IMF Valid TINs display without an asterisk.

    2. Transactions that successfully obtain a proximal match on the IRS valid name control file are directed to the valid segment of the IMF for posting. See IRM 3.13.5.13 for additional information on proximal matching.

    3. If the TIN and Name Control were added this quarter, the transaction are considered valid. However, these transactions are directed to the invalid segment of the IMF for posting until the quarterly merge is completed.

  4. The DM–1 file may display/record more than one name control for a TIN.

    Reminder:

    It is important to note that IMF does move VALID IMF accounts to the INVALID side of IMF due to the quarterly merges.

3.13.5.15  (01-01-2014)
National Account Profile (NAP)

  1. The NAP contains information received from several sources. The sources of information are as follows:

    • Data Master One (DM–1) file

    • Social Security Number (SSN) file

    • Employer Identification Number (EIN) file

    • Employee Plan Master (EPMF) file

    • Cross Reference (XREF) file

  2. The NAP provides taxpayer entity information for the primary taxpayers on the IMF, BMF (SSN/ITIN & EIN), and EPMF. The NAP contains spouse and dependent cross-reference information (when applicable).

  3. If any of the name control(s) listed matches the taxpayer name controls (for the specific taxpayer period) and the TIN, the taxpayers account will attempt to post during the next quarterly merge.

    1. SSA Name Control(s)

    2. ITIN Name Control

    3. New SSA Name Control(s)

    4. IRS Valid Name Control(s)

    5. Adoption Name Control

      Note:

      SSA name controls displayed on CC INOLES are NOT listed in chronological order. If any name control(s) listed on the SSA, ATIN or ITIN name control used by the taxpayer match, the taxpayers account will attempt to post to the valid side of IMF.
      The posting to the VALID side will be completed after the correction transaction codes posts, or;
      after upon completion of the DM-1 quarterly merge.

  4. A primary taxpayer may file using an ATIN. However, more frequently ATINs are used for dependents.

  5. CC EOGEN is used as a research tool to display EIN and name line information for Exempt Organizations (EO).

  6. CC SPARQ is used as a research tool to display the address information for both the primary and secondary taxpayers on a jointly filed return. Command code SPARQ first checks to see if the most current name line year for the primary SSN still has the same secondary SSN. A check is then made to see if the secondary SSN is now filing as a primary taxpayer. A final check is made, using the cross reference data on the NAP to see if the secondary SSN is now filing jointly with another primary taxpayer. If more than one of the above is possible, the name line year is used to determine the most current address.

    Note:

    If CC SPARQ is unable to locate a more current address for the secondary SSN, only the address for the primary SSN will be displayed.

3.13.5.16  (01-01-2014)
Weekly NEW SSA Name Control (N/C) Indicator Files

  1. The IRS receives weekly tapes from SSA containing all the name controls and SSNs assigned or updated for the one week period. These updated records display beside the "NEW SSA N/C" field as shown on CC INOLES.

    If... Then...
    taxpayers account is already established on the invalid segment with matching TIN and name control, Transaction will post.
    taxpayers account is already established on the invalid segment with a different TIN and name control, Transaction will not post.
  2. In addition to the weekly SSA records, IMF also completes the same matching process on taxpayer accounts that were made IRS-valid.

  3. When the quarterly DM-1 merge is completed, all accounts with "NEW SSA N/C" indicators turned "on" will be turned "off" . The accounts that resided on the invalid segment are validated against the DM–1 File.

    If... Then...
    Match is obtained, taxpayers account attempts to move to the valid segment of IMF.
    No match is obtained, taxpayers account is returned to its original slot on the invalid segment of IMF.

  4. When a transaction finds a match on the DM–1 file with a "NEW SSA N/C" indicator present, the transaction will attempt to post to the valid side/segment of IMF.

  5. IF the account is considered invalid but the input name control matches the "NEW SSA N/C" , the taxpayer WILL NOT receive entity notices and their refund (if applicable) WILL generate.

  6. Taxpayer accounts with the "NEW SSA N/C" literal may be valid accounts residing on the invalid segment of IMF. However, all NEW SSA N/C, IRS VALID, ATIN and ITIN accounts reside on the invalid segment until completion of the quarterly DM–1 merges.

    Note:

    The quarterly updates of the DM-1 File are done in January, April, July, and November of each year.
    The quarter merges are scheduled in cycles 05, 15, 31, and 44.

  7. It is important to note that before an IMF entity notice is generated, the "NEW SSA N/C" indicator is checked.

  8. If the NEW SSA N/C indicator displays on a taxpayers account with a valid SSN and the refund is being held due to the timing of the IMF quarterly update, thoroughly research the taxpayers account.

    Note:

    Use CCs IMFOLT, IMFOLI, INOLET, INOLES, ENMOD, TXMOD and REINF to ensure the taxpayer is valid and the account has no outstanding issues and whether a refund is pending. Other research may be warranted due to any unique taxpayer-related issues encountered.

3.13.5.16.1  (01-01-2014)
NEW SSA N/C Indicator on CC INOLE

  1. Taxpayer accounts corrected with a TC 016 (IRS Valid) display the taxpayers IRS-valid N/C on CC INOLE. Initially, the assigned name control displays directly beside the "NEW SSA N/C" field.

  2. The IRS-valid name control continues to display beside the NEW SSA N/C field until after the quarterly merge is completed.

  3. Once the IRS-valid name posts (after the quarterly merge), the IRS-valid name control then displays on CC INOLE beside the "IMF N/C" field. See IRM 3.13.5.16 for additional information.

3.13.5.17  (01-01-2014)
IMF Automated Establishment of Secondary Taxpayers and Correction Procedures

  1. IMF completes a special process to establish the secondary taxpayer on IMF for all Married Filing-Joint accounts. IMF automatically separates the secondary taxpayer from the primary taxpayer account and establishes a separate account on IMF.

  2. You can identify the IMF-established secondary taxpayer accounts using CCs IMFOLE or ENMOD. The secondary taxpayer accounts established by IMF display with the following unique DLN:

    TC 000 displays with a DLN of XX263-001-88888-X
    XX indicates the File Location Code (FLC) of the campus or area office.

    Note:

    IMF does not establish secondary taxpayer accounts if any of the following conditions exist:

    Secondary SSN (S-SSN) is invalid or unavailable
    "DECD" is present in Secondary Name Line
    Primary SSN is the same as the Secondary SSN
    No spouse name indicated when the primary taxpayer filed using FSC 2 or 7

  3. These IMF-created secondary accounts may also display subsequent updates to the taxpayers accounts. Examples of these subsequent TCs are as follows:

    • TC 013

    • TC 014

    • TC 971 with Action Code 050 (changes the Business Operating Division (BOD))

    Note:

    All of these subsequent TCs will also contain the unique DLN of XX263-001-88888-X.

  4. A very small portion of the taxpayer accounts that were established by IMF could cause:

    • Erroneous CP Notices

    • Incorrect establishment of taxpayer Name and Name Control

    • IMF Unpostable conditions

    Note:

    These accounts require corrections using TC 040 or TC 041 to correct the secondary taxpayers account and to bypass NAP validations. See IRM 3.13.5.132 and IRM 3.13.5.133 for TC 040 and TC 041 instructions.

  5. If a TIN change is required to the secondary taxpayers account who filed married filing jointly (FSC 2), a two-step correction process is needed. See IRM 3.13.5.116 and IRM 3.13.5.130 for additional information.

  6. Before correcting the taxpayers account, thoroughly research the taxpayers account using CC INOLET and/or INOLES to display the IMF Name Controls and SSA Name Controls used by the taxpayer.

    1. NUMIDENT transcripts are ordered through IDRS using CC MFTRA with Request Type "U" However, it takes approximately three days to generate and receive the transcripts from the campus print room. If employees have access to CONTROL D WebAccess (CTDWA), the NUMIDENT transcripts are available in approximately one day. Requests printed using CONTROL D can also be converted to a PDF file and may be forwarded to any employee working the case. See IRM 1.4.16, Accounts Management Guide for Managers, for additional information. IRM 1.4.16 contains information on viewing and/or printing reports. See IRM 2.3.32 for additional information on CC MFTRA.

      Note:

      Requesting the SSA information is especially important if it is difficult to determine if the taxpayers Name Control was corrected due to a proximal match such as shown in the following example:

      IMF N/C SSA N/C
      BCAK BACK, MCPH

    2. If necessary, see IRM 3.13.5.13 for additional information on proximal matching.

  7. Use TC 040 to change name or TIN of the taxpayers account that resides on the valid segment of IMF.

  8. The following Information may be needed to complete a TC 040:

    1. Name Control

    2. All name lines

    3. Year and TC 040 in the appropriate field(s)

    4. FSC

    5. New TIN, if appropriate

    6. Reason for the change in the REMARKS field

  9. Use TC 041 to correct a name or only TIN of the taxpayers account that resides on the invalid segment of IMF (if required, cycle delay the TC 041 for three additional cycles);

  10. The following taxpayer Information may be needed to successfully change to the invalid segment of IMF is as follows:

    1. New Name Control

    2. Primary name line

    3. Year name line

    4. TC 041

    5. FSC

    6. New TIN

    7. Description of changes in the REMARKS field

  11. TC 040/041 corrections do not go through the DM–1 validation process. Therefore, it is important to use TC 040/041 ONLY when IMF establishes taxpayers incorrectly or the taxpayer provides "proof" of their identity. This proof includes copies of the following items:

    1. Marriage certificates clearly showing name change

    2. Divorce decrees clearly showing name change

    3. Legal documents clearly showing name change

  12. A social security card alone is NOT proof of a taxpayers identity. If CC INOLE does not reflect any of the names shown on the social security card, do not complete the name changes with a TC 041 and bypass the NAP.

3.13.5.18  (01-01-2014)
Social Security Administration (SSA) Requirements and Form SSA-2458.

  1. SSA issues SSNs to qualified applicants.

  2. SSA procedures require that all applicants must submit documentation to establish their age and identity if they are a U.S. citizen or a lawful alien.

    Note:

    SSA may use the Form SSA-2458, Report of Confidential Social Security Benefit Information, to communicate miscellaneous SSA updates/corrections.

  3. Applicants must apply in person.

  4. If a change or replacement card is required, the applicant must also submit documentation before their request will be processed.

    Note:

    SSA does not correct taxpayer records or issue revised or SSN replacement cards due to IRS supplied information.

  5. It should be noted that SSA taxpayer name changes are not mandatory. The IRS can only suggest to the taxpayer to inform the SSA of their name changes. However when taxpayers inform the SSA of their name changes, weekly SSA name updates are received from the DM-1 File updates.

  6. If a taxpayers account contains an erroneous DOD and they are not deceased, the SSA Form 2458 is required by the IRS before the inaccurate DOD can be removed from their account.

3.13.5.19  (01-01-2014)
IMF Taxpayer Identification Numbers (TINs) Formats

  1. The IRS uses four different types of TINs when processing IMF taxpayer accounts. They include:

    • Social Security Numbers (SSNs),

    • Individual Taxpayer Identification Numbers (ITINs)

    • Adoption Taxpayer Identification Numbers (ATINs)

    • Internal Revenue Service Numbers (IRSNs)

  2. All four TIN formats are included in IRM 3.13.5.20 through IRM 3.13.5.23

3.13.5.20  (01-01-2014)
Social Security Number (SSN) Format

  1. SSA issues SSNs in the following format: XXX–(area), XX–(group), XXXX–(serial number).

  2. The Social Security Administration (SSA) does not assign SSNs with the first three digits of:

    • 000 (000-nn-nnnn)

    • 666 (666-nn-nnnn)

    • 900-999 ((900-999)-nn-nnnn)

  3. The SSA does not assign SSNs with zeroes in the fourth and fifth positions of the SSN format.

    • nnn-00-nnnn

  4. The SSA does not assign SSNs with zeroes in the last four positions of the SSN format.

    • nnn-nn-0000

  5. Prior to June 2011, the SSA did not assign SSNs with the following first three position of the SSN format:

    • 772-799 (772-nn-nnnn, 773-nn-nnnn, etc.)

    • 800-899 (800-nn-nnnn, 801-nn-nnnn, etc.)

  6. The SSNs in the following examples are invalid and were never issued through the Social Security Administration:
    000-XX-XXXX
    111-11-1111
    222-22-2222
    777-77-7777
    123-45-6789
    666-66-6666, etc.

    Reminder:

    Research is required to determine the taxpayers correct SSN. If an SSN cannot be located, an IRSN or Individual Taxpayer Identification Number (ITIN) is required to process a taxpayers payment or return.

3.13.5.21  (01-01-2014)
Individual Taxpayer Identification Number (ITIN) Format

  1. The ITIN display in a format similar to a SSN but will always begin with the number "9."

  2. The fourth and fifth numbers within an ITIN are assigned in the following unique numbering ranges:

    • 9nn-70-nnnn through 9nn-88-nnnn

    • 9nn-90-nnnn through 9nn-92-nnnn

    • 9nn-94-nnnn through 9nn-99-nnnn.

    Note:

    "89" and "93" are not used as the fourth and fifth numbers for ITINs but are reserved for other programs.

3.13.5.22  (01-01-2014)
Internal Revenue Service Number (IRSN) Format

  1. The IRSN format is in the same pattern as regular SSNs: XXX–XX–XXXX. However the IRSN will always begin with the digit "9" .

  2. The fourth and fifth digits of the IRSN signify the Internal Revenue Service Campus (IRSC) Code where the IRSN was originally assigned or the newer expansion range that was assigned to the campus.

  3. When the original IRSN ranges are exhausted, the campus should begin using the expansion range allotted to their campus. See the following table to determine the origination of an IRSN assignment:

    IRSC 4th and 5th Digit Ranges for IRSNs Expansion Ranges
    Andover 08 38
    Atlanta 07 37
    Austin 18 06
    Brookhaven 19 01
    Cincinnati 17 02
    Fresno 89 10
    Kansas City 09 39
    Memphis 49 03
    Ogden 29 04
    Philadelphia 28 05

  4. The Temporary/Scrambled application does not use Area Offices (AOs) Codes when issuing IRSNs.

  5. Typically IMF Entity will not assign an IRSN to anyone other than the primary taxpayer.

3.13.5.23  (01-01-2014)
Adoption Taxpayer Identification Number (ATIN) Format

  1. The ATIN format is in the same format as regular SSNs: XXX–XX–XXXX.

  2. However, the ATIN will always begin with the digit "9" and the fourth and fifth digit will be "93" . The last four digits of the ATIN are assigned in ascending sequential order. Example of an ATIN format: 9XX–93–XXXX.

  3. ATINs are being completed at the Austin Submission Processing Center (AUSPC).

  4. For additional information on ATINs, see IRM 3.13.40, Application for Tax Identification Number for Pending U.S. Adoptions.

3.13.5.24  (01-01-2014)
Transaction Codes Used to Merge Accounts

  1. When an IMF taxpayers account moves from one TIN to another TIN or from one segment of master file to the other segment of IMF (e.g., valid/invalid), it resequences or merges the account.

    Note:

    Never attempt to merge two accounts when both accounts ("from" and "to" ) have a TC 150 present for the same tax period. For additional information, see IRM 21.6.2, Adjusting TIN-Related Problems.

  2. Only the following entity transaction codes (TCs) resequence taxpayer accounts:

    TC 011 Input to change the TIN on an account on IMF.
    This transaction is systemically compared against the DM-1 file.
    TC 013 Input to change the name on the account.
    This transaction is systemically compared against the DM-1 file.
    TC 016 Input to validate an invalid name control
    This transaction name is not compared against the DM-1 file and bypasses NAP checks.
    TC 040 Input to change a TIN or name on an account to the valid segment.
    This transaction is not compared against the DM-1 file and bypasses NAP checks.
    TC 041 Input to change TIN or name of an account to the invalid segment.
    This transaction is not systemically compared against the DM-1 file and bypasses NAP checks.

  3. The following contains transaction code exception processing for specific IMF cycles:

    Exception:

    During cycles 48 through 04, TCs 011, 013, 040 and 041 can be input. However, the posting of the transactions will not occur until after cycle 04 or later.

  4. Resequencing of accounts is accomplished by one of these two methods:

    • Automatic IMF resequencing

    • Input of an entity transaction

  5. See IRM 3.13.5.108 for additional information on Posting Delay Codes (PDCs).

3.13.5.25  (01-01-2014)
Scrambled TIN Cases

  1. A scrambled TIN case occurs for the following conditions:

    1. Returns are filed by two or more taxpayers using same TIN.

    2. An accurate TIN for the taxpayers cannot be determined.

      Note:

      If a correct TIN is located for either taxpayer, the account must be separated. See IRM 21.6.2, Adjusting TIN-Related Problems, for detailed instructions.

    3. When two individuals with the same or similar names receive the same SSN from the SSA.

  2. A scrambled TIN condition is identified as:

    Scramble indicators "00, 01, 04, 05, 08, 10, 12, 13, 20, 21, 22, 23, or 24" display on CCs IMFOLE, INOLES, or ENMOD
    "XX" on CP54

  3. Every effort must be made to locate a correct TIN for both taxpayers:

    1. Research using CCs IMFOL, RTVUE, INOLE, ENMOD, NAMES, NAMEI, FINDS and REINF, etc.

    2. If needed, request a copy of the taxpayer's Social Security record/NUMIDENT transcript.

      Note:

      The NUMIDENT transcript is for internal use only and must never be sent to the taxpayer.

  4. If you discover the case is a scrambled case, do not take any further action.

    1. Complete a Form 3465, Adjustment Request, and forward the case to the appropriate Customer Service Representative (CSR) in Accounts Management.

    2. Follow their directions regarding the resolution. The REMARKS section of the IDRS command code used must reflect, "coordinate with Accounts Management."

    3. Route scrambled cases requiring statute action to the Statute function.

  5. Many scrambled cases are identified while working the following types of cases:

    1. CP36s

    2. Duplicate filing of a return

    3. Taxpayer inquiries

    4. NOMRG transcripts

    See IRM 21.6.2, Adjusting TIN-Related Problems, for further information.

3.13.5.26  (01-01-2014)
Mixed Entity/Multiple Filing Conditions

  1. A multiple filer condition or (Mixed Entity) occurs when more than one individual files using the same TIN. Any of the following conditions could cause multiple filing issue:

    • Use of an SSN by more than one unauthorized individual (invalid segment of IMF).

    • One or two individuals filing two different tax returns for same tax period with same TIN.

    • Family members using the same individual TIN in error (valid segment of IMF)

  2. When it is determined that multiple filers are involved in a case, see the following table:

    If the account resides on... Then...
    Invalid segment of IMF File and they filed as the primary filer a. Secure both documents (e.g., returns) from files.
    b. Issue "C" letters to each individual informing them to obtain a valid TIN, and/or file Form W–7.
    c. Suspend the case for 45 days or until a reply is received from one or both the taxpayers involved.
    d. If no reply, coordinate with Accounts Management.
    Valid segment of IMF a. Take no action
    b. Coordinate the case with the appropriate TE/unit in Accounts Management.
    c. Follow their directions regarding resolution.
    d. Annotate on IDRS in the REMARKS section, "coordinate with Accounts Management. "

3.13.5.27  (01-01-2014)
Entity Changes from Oral Statements

  1. All entity changes/corrections made due to oral statements from taxpayers or their authorized representatives must include the required elements outlined in IRM 21.1.3, Operational Guidelines Overview.

  2. When contacting a taxpayer by telephone, use the authentication disclosure procedures found in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication.

    Note:

    See IRM 21.1.3, Operational Guidelines Overview, Accounts Management and Compliance Services Operations. Disaster information is contained specifically in IRM 21.1.3.20, Operational Guidelines Overview, Oral Statement Authority.

  3. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Operational Guidelines Overview, Required Taxpayer Authentication and IRM 21.1.3.2.4, Operational Guidelines Overview, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayers answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail.

  4. Source Documents are not always required to complete minor entity changes (examples: obvious address misspellings, corrections to addresses, typographical errors on taxpayer names, etc.) if you are absolutely sure you are speaking to the taxpayer or their authorized representative. Example taxpayer says their address is 14329 Bird Street instead of 1432 Bird Street. These type of address changes are recommended (after authenticating the taxpayer).

    Note:

    See the taxpayer authentication procedures in IRM 21.1.3, Operational Guidelines Overview, whenever you must speak to a taxpayer by telephone or face-to-face contact.

  5. See IRM 3.13.5.28 and IRM 3.13.5.28.1 for instructions on processing oral address changes.

3.13.5.28  (01-01-2014)
Address Changes from Oral Statements/Telephone Contact

  1. Background:
    Clear and concise oral notification is a statement made by a taxpayer in person or directly via telephone to a Service employee who has the ability to access a taxpayers account to complete research and complete an address change. If the taxpayer or their authorized representative requests an address change, they must be able to provide the information in paren (5) to authenticate their identity.

    Note:

    The TE/CSR must authenticate the taxpayer/authorized representative prior to completing the address change.

    Caution:

    Due to the high level of identity theft, it is extremely important to ensure changing/updating/correcting a taxpayers address is warranted and necessary. To ensure you are speaking directly with the correct taxpayer(s) or their authorized representative see IRM 21.1.3, Operational Guidelines Overview, for required taxpayer authentication guidelines.

    Reminder:

    When updating taxpayer addresses through oral statements, advise the taxpayer to change their address at their local United States Postal Service (USPS).

  2. Never complete an address change when the address information is received from an "unauthorized" third party.

  3. If either taxpayer reports a new address for their married filing joint account, inquire if the address change is for BOTH taxpayers. When the address change involves both taxpayers sharing the same address, update both addresses. If only one taxpayer is changing their address, update the appropriate account and leave the other taxpayer address alone. If CC INCHG/IRCHG requires the input of a filing status code, do not change the taxpayers FSC. Use the filing status currently on the account.

  4. All transactions containing an address change require the TE to enter the requestor's name, title, and phone number (when available) in the REMARKS field when using IAT address tool or enter the required information in the REMARKS field on IDRS.

    Reminder:

    Once a taxpayer indicates they have an address change, determine whether the address change is permanent or a temporary address change (e.g., student at college).
    If taxpayer indicates a temporary address change, do not update the address on master file.

  5. In order to complete an address change through telephone contact, the taxpayer or their authorized representative must be able to provide the following information:

    1. Taxpayer's full name

    2. Secondary taxpayers full name, if applicable

    3. Prior address or their Last Known Address (LKA)

    4. SSN(s), ITIN, and/or EIN

    5. New address information

    If the taxpayer or their authorized representative is unable to provide all the items from above, they must be able to provide two additional items prior to completing the address change such as:

    1. Spouse's DOB

    2. Child's/Children DOB

    3. Amount of income reported on the last return or tax due on their return

    4. Employer's shown on taxpayers Form W-2

    5. Financial institutions from taxpayers Form 1099-INT or Form 1099-DIV

    6. Numbers of exemptions claimed on last return or on the return in question

    7. Tax preparer information (paid/unpaid) if any

    8. Expected refund amount (within $100) unless computed by IRS

    9. Any other verifiable information from return/account

    This information is available from the taxpayers return and/or filing history. See IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional taxpayer Authentication, for a complete list of the authentication items. See IRM 3.13.5.28.1 for additional information.

    Note:

    It is important to "repeat" back the new taxpayer address to confirm the new address before completing the update.

  6. If the taxpayer or their authorized representative CANNOT provide the required information, direct them to the IRS web page at http://www.irs.gov. If they do not have access to the web page, mail a Form 8822. Do not change the taxpayer's LKA in these circumstances.

  7. See IRM 3.13.5.47 for instructions on "written" address changes.

  8. See IRM 3.13.5.53 if either the primary and/or secondary taxpayer are establishing a separate address and the address change was communicated in writing.

  9. For ITIN oral address procedures, see IRM 3.21.263.4.15, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS), for additional information.

3.13.5.28.1  (01-01-2014)
Procedures on Completing an Address Update/Change due to "Oral" Statements/Telephone Contact

  1. If the primary or secondary taxpayer on a MFJ account reports an address change, use the following table:

    If the new address is reported by... And... Then...
    1. Primary Taxpayer Secondary taxpayer's current address was updated on a later cycle than their last filing as a MFJ taxpayer a. Complete an address change on the primary taxpayers module.
    b. Take no action on secondary taxpayers account.
    Secondary taxpayer's current address wasn't updated on a later cycle than their last filing as a MFJ taxpayer a. Complete an address change on both taxpayers module.
    Secondary taxpayer does not have an account on MF a. Complete an address change on the primary taxpayers module.
    b. Establish the secondary taxpayer using the address information provided by the primary taxpayer
    2. Secondary Taxpayer and secondary taxpayer is established on MF Address change is for both taxpayers Complete an address change for both taxpayers modules
    Address change is for secondary taxpayer only a. Complete an address change for the secondary taxpayers module only the new address information.
    b. Take no action on primary taxpayers account.
    IMPORTANT: Do not change either taxpayers Joint Filing Status Code (FSC 2) when completing address changes. If an FSC is necessary to complete the address change on CC INCHG/IRCHG, use the FSC currently on the account.

    Reminder:

    When completing an address change, employees must enter and include the requestor's name, title (if applicable) and phone number (if present) in the REMARKS field of the transaction whether using IAT or IDRS.

3.13.5.29  (01-01-2014)
Non-Entity Related and Criminal Investigation (CI) Cases Received in the Entity Control Unit (ECU)

  1. If you receive non-Entity issues such as manual refunds, erroneous refund issues, etc. and are not directly related to Entity correction issues, please refer to the specific Part 21 (Customer Account Services) IRMs.

  2. Coordination may be required with the Accounts Management (AM) area for resolution and/or transference of the case to the AM Function.

  3. Normally, these accounts will not be extracted, but caution still must be taken since the freeze may be applied after the case is extracted.

  4. Do not do an Entity action on Criminal Investigation (CI) cases including Unpostable Cases. Route any case with a Z- or -Z to Criminal Investigation (as shown on CCs IMFOLI or TXMODA).

  5. If you notice trends during processing such as Forms, Notices or documents that have similar handwriting, identical envelopes, multiple identical addresses, forward these cases to your local CI.

  6. If disposition is not known and CI does not want the freeze released, close the case "no follow-up" using the code "NOFOLUP–CI" on IDRS.

  7. See IRM 21.5.6 Freeze Codes or Document 6209, IRS Processing Codes and Information, if additional information is needed.

3.13.5.30  (01-01-2014)
Standard Abbreviations

  1. Use the following information if you need to abbreviate taxpayer-supplied information to fit within the space limitation:

    NAME/or PHRASE ABBREVIATION
    Trust TR
    Under the will of, U/W, under will UW
    Under agreement, U/A, Under agreement with UA
    Dated Jan. 16, 2011 01162011 (do not enter date/dated or the alpha month).
    Irrevocable Trust IRRV TR
    Revocable Trust RVOC TR
    Family Trust FAM TR
    Marital Trust MRTL TR
    Funeral Trust FNER TR
    Inter-Vivos INTRVS
    Non-exempt Charitable Trust NECT
    Revocable RVOC
    Testamentary TEST
    Under Trust Agreement UTA
    Insurance INS
    Charitable Remainder Unitrust CRUT
    Charitable Remainder Annuity Trust CRAT

  2. If the taxpayer has an "In Care Of" Name Line, use the "IMF-Continuation-of-Primary-Name-Line" to enter the information. If space allows on the line, include any designated titles.

    Note:

    "In Care Of" is entered in IDRS as "%" , for example, % John Birch GDN.

    See the following table for the title and acceptable abbreviations:

    Title Abbreviation
    Administrator ADM
    Charitable Remainder Annuity Trust CRAT
    Charitable Remainder Unitrust CRUT
    Commissioner COMM
    Conservator CONS
    Co-tutor, Co-tutrix*
    *Civil law concept similar to Guardian
    COTUTOR
    COTUTRIX
    Custodian CUST
    Executor/Executrix EX
    Fiduciary Personal Representative FID
    for the Benefit of, F/B/O, FBO FBO
    Guardian
    This may include the name of parent signing for a minor taxpayer.
    GDN
    Independent Conservator IND CONS
    Personal Representative PER REP
    Power of Attorney POA
    Successor SUCC
    Trustee TTEE

  3. If the taxpayer attempts to add an "In Care Of" name when making an address change, add this name on the secondary name line when completing an address change. See IRM 3.13.5.55 for additional information.

  4. When establishing a IMF taxpayer with a POA, Designated Agent, Executor/Executrix, In Care Of name, etc., and their address contains a PO Box and a street address, use the Continuation-of-Primary-Name (Line 2) field for the POA, Designated Agent, Executor/Executrix, etc. information and enter the PO Box.

    Reminder:

    When entering the tax year information (as displayed on CC INCHG/IRCHG), enter the year you wish the address change to become effective or the current tax period.

  5. This type of Entity update will generate as a TC 013 instead of a TC 014.

3.13.5.31  (01-01-2014)
Form 56, Notice Concerning Fiduciary Relationship

  1. Form 56, Notice Concerning Fiduciary Relationship, is filed to notify the IRS of a fiduciary relationship. There is no restriction with regard to the information a fiduciary can receive for the entity for whom he or she is acting. A fiduciary assumes the powers, rights, duties and privileges of the taxpayer(s), until notice is given that the fiduciary capacity is terminated. See IRM 3.13.5.30 for the acceptable title abbreviations.

    Caution:

    There are different versions of the Form 56 that may be received. If a version prior to 12/2007 is received, the earlier versions must contain the required elements for processing in order to be complete.

    Reminder:

    If there are two titles shown on the Form 56, input the title written next to the signature (when available). If there is no title next to the signature, choose one of the titles listed.

    Note:

    If the fiduciary title is not included on the Form 56, review all of the attached documentation/ legal documents (if applicable).

  2. When reviewing Forms 56 and if you notice the fiduciary is appointing a high ranking IRS or Treasury employee or other high ranking governmental officials or themselves as a fiduciary, refer these cases to Frivolous Return Program (FRP). See IRM 3.13.5.29 for additional guidance.

  3. If, for any reason, an IRS employee has concerns regarding the authenticity of a fiduciary, requester or titled representative, the employee may request the fiduciary supply supporting authority before disclosing taxpayer information. See IRM 3.13.5.30 if needed.

  4. An ID theft indicator on a taxpayer's account does not require routing to AM. However, if there are patterns, duplicate information, etc. that is suspicious on the application/account, ask your lead for guidance.

  5. If there is no TC 150 on the account, return the Form 56 to the taxpayer and correspond to inform the fiduciary the taxpayer's account does not have any returns filed.

  6. If the Form 56 is requesting an IMF and BMF entity change, process the IMF Entity action first, before transshipping to the Ogden or Cincinnati campus. Do not transship the case to a BMF campus if you determine the BMF entity change was already made.

    Note:

    Leave an action trail of the IMF transactions completed and your TE stamp (when required by your campus).

    Note:

    If the taxpayer provides an EIN in the Identifying Number line of the Form 56, consider the Form a BMF Entity change request and transship to the appropriate business campus.

    The following types of Form 56s must be completed in the following manner:

    If... And... Then
    a. Form 56 received with SS-4 attached the address is located in one of the 50 states or District of Columbia, forward to the EIN operations in Cincinnati
    there is no legal residence, principal place, principal office or agency in any state forward to the EIN operations in Ogden
    b. BMF international filer requests a BMF entity change forward to Ogden campus
    c. BMF domestic filer requests a BMF entity change forward to Cincinnati campus
    d. Form 56-F   forward to the Ogden or Cincinnati ECU
    e. Form 56 the taxpayer account does not exist on Master File, 1. underline the first four letters of their name control
    2. forward Form 56 and supporting documents/forms to Files.
    3. use a Form 3210 to be filed in the Alpha file.
    f. Form 56 with Illinois Land Trust returns listed in Part III forward to Ogden ECU
    no returns are indicated in Part III 1. underline the first four letters of their name control
    2. forward Form 56 and supporting documents/forms to Files.
    3. use a Form 3210 to be filed in the Alpha file.
    g. Form 56 (Revision 12/2007 or prior) Part III indicates the taxpayer is filing for delinquent income taxes under Offer and Acceptance forward to the Fraud Detection Center

    Caution:

    An EIN should not be assigned due to the submission of a Form 56.

  7. If the taxpayer submits a Form 56 and used their fiduciary address but this address is not their LKA, a Form 8822 is needed to complete their address change.

    Caution:

    DO NOT UPDATE the taxpayers address using their fiduciary address unless a Form 8822 or Form 8822-B is included with the Form 56.

    Exception:

    When the Fiduciary requests copies of all notices, Forms or specific notices as shown in box within Part III, item 5 (versions 12/2007 or prior)), or (Part I, Section B, item 6 (12/2011)) and the Form 56 is complete, update the taxpayer's address to the fiduciary's address.

  8. When corresponding for missing information from the fiduciary and the taxpayer is deceased, correct the address on the letter from "DECD" to "Estate of ..." .

  9. Review the entire document and any attachments including edited remarks for missing information prior to corresponding with the taxpayer.

    Example:

    Editorial remarks "Detached 201112 1040" edited in red.

    1. Use the information to complete the Form 56. If the required information cannot be located, correspond to the fiduciary (when possible) for the missing information using a Letter 0177C.

    2. Use the fiduciary's address (when available). If the fiduciary's address is not available, correspond using the taxpayer's LKA.

  10. A taxpayer is any individual, trust, estate, partnership, association, company or corporation. This includes pension and 401(k) plans.

  11. When a paper Form 56 is received, the following is required:

    • Taxpayer name line information

    • Identifying number (SSN, ITIN or EIN)

    • Fiduciary name and address

      Reminder:

      If the taxpayers address is missing, use the fiduciary's address. If the fiduciary address is missing, contact the fiduciary by telephone when possible.

      Note:

      If the fiduciary address is missing, return the Form 56 back to the taxpayer.

    • Title of Fiduciary (if available)

    • Signature of Fiduciary

      Exception:

      A facsimile and/or stamped signature is acceptable as a substitute for an original fiduciary signature. A letter signed with a stamped signature under the "Penalties of Perjury" portion also indicates the person is approved to sign the Form 56. A copy of the letter must be attached to each Form 56 and retained for inspection.

    • Tax Forms to be filed

    • Tax Years/tax periods

      Note:

      If tax year/period information is not provided, refer to paren (15) for Form 56 (revision 12/2007 or prior) or paren (17) for n Form 56 (revision 12/2011).

      Caution:

      If the IMF taxpayer is or has filed as FSC 2, ensure the fiduciary information is added to the taxpayer identified.

  12. If you cannot locate the missing information listed below, use the fiduciary-supplied documentation/attachments or the taxpayer's account, complete the processing of Form 56 without corresponding when possible:

    Exception:

    If you must correspond for the missing information listed in paren (11), also include a request for the missing information shown in (a) and (b) that follow.

    1. Authority

    2. Completion of Section A of the Form 56 (12/2011 revision):

      If... Then...
      a. 1 a is checked Decedent's DOD should be entered on Line 2a.
      b. 1 b is checked
      c. 1 c, d, e, or f is checked Date of appointment should be entered on Line 2b.
      When date of appointment is available, use this as the YEAR-NM-LINE to update the account.

  13. If the Form 56 does not include the specific returns, use the following information to determine the Forms based on the following:

    Note:

    If no description of the specific Forms is located or the information listed in the table is unavailable, correspond to the fiduciary.

    If... Then...
    1. SSN/ITIN is entered in Part I of Form 56 Edit "Form 1040" in the appropriate field of Form 56.
    2. EIN is entered Edit "Form 1041" in the appropriate field of Form 56.
    3. Word "gift" is entered Edit "Form 709"
    4. Form 706 for 2010 is the only return entry on Form 56 Take no action.
    Forward the document to files using the name control.
    Request filing in alpha file.

  14. When processing Form 56 (Revision 12/2007 or prior) when the fiduciary includes multiple tax periods, input the fiduciary name to the current tax period. Input the fiduciary's name/title (if applicable) in the "Continuation of Primary Name Line" . If the taxpayer is deceased (as shown on CC INOLES or on Form 56), update their name. Use the tax period of their date of death and add "DECD " to their name line (TC 013). You must re-enter the fiduciary name/title (if applicable) to the "Continuation of Primary Name Line" .

  15. The submitter of the Form 56 (Revision 12/2007 or prior) must indicate in Part III on Line 4 the specific tax year(s)/period(s) they are authorized to receive taxpayer information).

    Exception:

    Form 56 (Revision 12/2007 or prior) allows the filer to terminate fiduciary relationships.

    1. If the taxpayer indicates "all years" with no specific years listed, add the fiduciary to the year after the last TC 150 posted (Revision 12/2007 or prior).

    2. If the taxpayer does not include the specific tax year(s), correspond to request the specific tax year(s). Return the Form 56 to the taxpayer with the correspondence letter (Revision 12/2007 or prior).

    3. If the DOD is provided, but no specific tax years are listed, correspond (Revision 12/2007 or prior).

  16. If the account is inactive and the taxpayer is not deceased (MFR 08), reopen the account using a TC 012 (if necessary).

    Reminder:

    The Estate of a deceased taxpayer can file an individual tax return for the year the taxpayer died. If a tax return is filed on behalf of the decedent after the year of their death, a Form 1041 must be filed on their behalf.

    Note:

    If a name change is required, complete the name change with a PDC of 3 (when applicable).

  17. In the Form 56 (12/2011 version), the fiduciary is instructed to check the box and provide the specific tax periods within Section B Line 5.

    1. If fiduciary does not check the box, input the fiduciary name to the current tax period.

    2. If the fiduciary checks the box but does not list the specific tax periods, input the fiduciary name to the current tax period.

    3. If the fiduciary checks the box and lists specific tax periods, add the fiduciary name to the specific tax periods listed on the Form 56.

      Note:

      If the fiduciary indicates the taxpayer is deceased, research to determine if the taxpayers Date of Death (DOD) is on their account. Update the taxpayers name and use the tax period of their date of death to add "DECD " to their name line. (TC 013).

      Reminder:

      You must enter the fiduciary name/title (when available) to the "Continuation of Primary Name Line" to update the account.

    Caution:

    Do not add a DOD to a taxpayer account, without copies or original documents or existing DOD information on the taxpayer's account.

    See IRM 3.13.5.95 for additional information when adding a DOD to the taxpayer's account.

  18. If the EIN and/or SSN are missing and the correct TIN cannot be located, return the Form 56 to the taxpayer and request the missing TIN. Inform the taxpayer to access the IRS internet at http://www.irs.gov/ in order to locate a copy of a Form SS-4 and request completion of both documents and return them to the IRS for processing.

3.13.5.31.1  (01-01-2014)
Termination or Substitution of Fiduciary Relationship (Revision 12/2007 or prior)

  1. If the fiduciary notifies the IRS that (either through correspondence or Form 56 by checking the termination block in Part IV, Section A) that the fiduciary relationship has terminated or they revoked their relationship, update the account as follows:

    1. If the account has fallen off the Master File, take no action.

    2. Once the account is terminated, follow the disposition procedures.

  2. Review the Form 56 to determine if the Total Revocation Section of Form 56 is completed.

    1. If the fiduciary is no longer authorized for the taxpayer, remove the fiduciary name and restore the taxpayer's address (if needed).

    2. If the "Substitute Fiduciary" section is completed, establish this fiduciary name ONLY as requested.

3.13.5.31.2  (01-01-2014)
Termination of Fiduciary Relationship (Revision 12/2011)

  1. Information has been provided on the IRS.gov for the Form 56 that instructs the fiduciary/taxpayer to write "TERMINATE" in red capital letters across the top of a previously filed Form 56 or to submit a new Form 56. The Form 56 must be completely filed out and signed.

  2. When Form 56 is received with TERMINATE/Terminate/terminate written in any color of ink, remove the fiduciary name and/or title from the taxpayer's account. If the fiduciary is no longer authorized for the taxpayer, remove the fiduciary name and restore the taxpayer's address (if needed).

  3. If a Form 56 includes any court orders or documentation/paperwork that terminate the fiduciary relationship, remove the fiduciary name and/or title from the taxpayer's account.

3.13.5.31.3  (01-01-2014)
When to Use Fiduciary or "In Care Of" Name

  1. The following is useful in determining whether to use the Fiduciary or the "In Care Of" name as the IMF taxpayers second name line information. If the Fiduciary/In Care Of name line includes a designated title (example: Thomas Cardinal, Trustee), you must always enter the correct abbreviation of their title (if space allows). If the fiduciary title information is not supplied in Part I of the Form 56, review entire Form 56 and any attached documentation (including legal documents) to determine the appropriate fiduciary title.

    If Form 56... And... Then...
    1. Contains a fiduciary's name only   add fiduciary's name information as the secondary taxpayer name line
    2. Contains a fiduciary's name and an "In Care Of Name" name listed on CC CFINK matches Fiduciary's name add fiduciary's name as secondary name line
    name listed on CC CFINK matches the "In Care Of Name" , add this name as secondary name line
    name listed on CC CFINK is different than fiduciary's or In Care Of Name use fiduciary's name as secondary name line
    Change the taxpayers address if a Form 8822 is attached.

  2. See IRM 3.13.5.30 for information on these abbreviations.

3.13.5.31.4  (01-01-2014)
Processing Form 56 with Address Changes

  1. If a Form 56, Notice Concerning Fiduciary Relationship, is submitted that reflects a different address than the taxpayers LKA, do not update the taxpayers address unless a Form 8822 or Form 8822-B is included/attached.

  2. Complete the address change based on the submission of a completed Form 8822 or 8822-B.

  3. See IRM 3.13.5.31 for additional instructions on completing the Form 56.

3.13.5.31.5  (01-01-2014)
Disposition of Form 56

  1. Send Form 56 as a source document to Files using a Form 3210, Document Transmittal. Notate on the Form 3210 to file the Form 56 in the ALPHA File or per local procedures.

  2. If the taxpayer filed electronically, research for the electronically filed Form 8453 Electronically Filed (ELF) DLN. Send the information using a Form 3210, Document Transmittal, the Form 56, and any supporting document to Files indicating the information will be filed in the ALPHA File.

3.13.5.32  (01-01-2014)
Form 1128, Application to Adopt, Change or Retain a Tax Year for Individual Taxpayer

  1. A tax year is an annual accounting period for keeping records and reporting income and expenses. Once the tax year is established, the taxpayer continues to use that tax year until permission is granted by IRS to change the tax year selected. The Form 1128 is filed to request a change in tax year.

  2. For an individual taxpayer's application to be accepted it must be received complete and filed timely.

  3. For an individual taxpayer to change their tax year, the application MUST be filed on or before the taxpayer's due date.

  4. The Form 1128 due date for the majority of IMF filers is:

    1. April 15, or;

    2. Date the TC 460 (extension) displays on the taxpayers account, or;

    3. Trusts, generally due on the 15th day of the 4th month following the end of the tax period.

    Reminder:

    The extension due date for an IMF taxpayer is October 15.

    Note:

    To determine if a taxpayer has filed for an extension, review their account on CC IMFOLT to determine the date displayed beside the TC 460 "EXT DT" field.

  5. Review the Received Date stamp and the following to determine if the Form 1128 is timely filed:

    If... Then...
    a. Received date indicates the Form 1128 is timely Continue processing
    b. Receive date indicates the Form 1128 is not timely
    1. Reject the form. Annotate "Rejected" and the date of the rejection.

    2. Send taxpayer a Letter 2233C, Application To Adopt, Change, or Retain a Tax Year Denied.

    3. Enclose Rejected Form 1128 in 2233C to taxpayer.

    4. Return the original Form 1128 and 2233C to the taxpayer, using a Form 14219, Return of Documentation to the Taxpayer, and;

    5. Route photocopies, 2233C and Form 1128 to Files for placement in the ALPHA FILE.

    c. Received date indicates the Form 1128 is timely but the Form is incomplete Continue processing
    d. Form 1128 is received with a letter from Chief Counsel advising the taxpayer to file within 30 days of the date of their letter and it is received within this time period Continue processing
    e. Correspondence is received from the taxpayer as a result of Form 1128 being denied because it was filed late. 1. Use the Letter 2233C (or other appropriate letter) to return the denied Form 1128 to the taxpayer.
    2. Inform the taxpayer that their request should be filed with Chief Counsel per instructions on the Form 1128.

  6. When a Form 1128 is received in an IMF campus timely, review the form for the following:

    If Part I is completed... And... Then...
    a. Part I, Line 2a "Adopt a tax year ending"
    or "Change to a tax year ending"
    or "Retain a tax year ending"
    includes the date 12/31 or December 31
    Part II, Section C, Line 9 is checked "yes"

    Note:

    Individual taxpayers are filing using Rev. Proc. 2003-62, or its successor.

    Continue processing
    a. Line 2a "Adopt a tax year ending"
    or "Change to a tax year ending"
    or "Retain a tax year ending"
    contains a date other than 12/31 or December 31 Mail to Chief Counsel using the address shown in paras (14) and (15).
    b. Part I, Line 2c, "and ending"

  7. Use the following to review Part II completed by individual taxpayers:

    Note:

    Individual taxpayer who complete Part II, and check "yes" within Section C, Line 9, can only request a calendar year (ending 12/31 or December 31). If requesting other than CY, the Form 1128 must be sent to Chief Counsel.

    If.. And... Then...
    taxpayer checks "yes" within Section C, Line 9, Requested a change or modification to a calendar year

    Example:

    December 31 or 12/31.

    Continue processing
    Requested a change or modification to other than a calendar year

    Example:

    3/31, 6/31, etc.

    Mail to Chief Counsel using the address shown in paras (14) and (15).
    taxpayer checks "no" within Section C, Line 9   Mail or fax to Chief Counsel using the address shown in paras (14) and (15).

  8. If Part III is completed by an individual taxpayer, use the information contained in paras (14) and (15) to refer the case to Chief Counsel.

    Reminder:

    Any Form 1128 received for an Estate must be referred to Chief Counsel.

  9. Review the Received Date stamp and the following to determine if the Form 1128 is timely filed:

    If... Then...
    a. Received date indicates the Form 1128 is timely Continue processing
    b. Receive date indicates the Form 1128 is not timely
    1. Reject the form. Annotate "Rejected" and the date of the rejection.

    2. Send taxpayer a Letter 2233C, Application To Adopt, Change, or Retain a Tax Year Denied.

    3. Enclose Rejected Form 1128 in 2233C to taxpayer.

    4. Return the original Form 1128 and 2233C to the taxpayer, using a Form 14219, Return of Documentation to the Taxpayer, and;

    5. Route photocopies, 2233C and Form 1128 to Files for placement in the ALPHA FILE.

    c. Received date indicates the Form 1128 is timely but the Form is missing the taxpayer (s) or TIN
    1. Research IDRS for missing taxpayer name and/or TIN, if necessary.

    2. Research IDRS for missing taxpayer name and/or TIN, if necessary.

    3. If located, notate the appropriate information on Form 1128 and continue processing.

    4. If not located, return original Form 1128 to taxpayer or POA indicating what information is missing. with a 2314C letter.
      Retain a copy of the Form 1128 in the suspense files for 45 days (for taxpayer inquiries).
      At the end of 45 days, destroy as classified waste.

    d. Form 1128 is received with a letter from Chief Counsel advising the taxpayer to file within 30 days of the date of their letter and it is received within this time period Accept it as timely and continue processing
    e. Correspondence is received from the taxpayer as a result of Form 1128 being denied because it was filed late. 1. Use the Letter 2233C (or other appropriate letter) to return the denied Form 1128 to the taxpayer.
    2. Inform the taxpayer that their request should be filed with Chief Counsel per instructions on the Form 1128.

  10. Once it determined the Form 1128 is timely filed, review Page 1, for the following information:

    If... And... Then...
    a. Signature(s) is missing   Return the Form 1128 to the taxpayer using a Letter 0143C and request the missing signature.
    b. An agent is designated Form 2848, Power of Attorney and Declaration of Representative, is attached 1. Forward the POA to the Centralized Authorization File (CAF) Unit if the document authorizes recognition for an additional returns.
    2. A copy of the POA should be retained and attached to Form 1128 prior to forwarding to CAF so that any correspondence can be sent to the POA as required by law.
    3. Annotate on the case "POA to CAF" .

    Note:

    A POA cannot sign Form 1128, the taxpayer must sign. If signed by POA, return to the taxpayer as unprocessable.

    c. POA signs Form 1128 Form 2848 is not attached Return Form 1128 to the taxpayer using a 2314C letter (or other appropriate letter).
    d. Part I, Form 1128 is complete and signed correctly

    Reminder:

    If the application is for a husband and wife, both must sign.

      Continue processing
    e. Part 1, Form 1128 is incomplete   1. Return Form 1128 to the taxpayer with a 2314C letter.
    2. Retain a copy of the Form 1128 in the suspense files for 45 days (for taxpayer inquiries).
    3. At the end of 45 days, destroy as classified waste.

  11. If the address on Form 1128 indicates a different address than what is shown on IMF, disregard. Send all correspondence to the existing IMF address.

  12. When the Form 1128 is determined to be complete, timely filed, and the requested change was to a calendar year (December 31 or 12/31) as shown within Part I, update the taxpayer's account as follows:

    1. Use CC INCHG to update the FYM (generates a TC 016);

    2. Stamp "approved" on original Form 1128 then photocopy the Form 1128.

    3. Annotate on the original Form 1128 the date the TC 016 was entered and the employee IDRS number.

    4. Send the photocopy of Form 1128 with a 2314C letter to the taxpayer and their POA (if applicable), informing the taxpayer the Form 1128 has been approved.

    5. Route the original Form 1128 to Files for placement in the ALPHA File.

  13. If a Form 1128 received was already approved by Chief Counsel, complete using the following:

    1. Use CC INCHG to update the FYM. This will generate a TC 016.

    2. Annotate on the letter ruling the date the TC 016 was entered and the employee IDRS number.

    3. Route the ruling letter to Files for association with the Form 1128.

      Note:

      Chief Counsel will retain the Form 1128 and will submit it to the campus along with a copy of approved letter ruling

  14. Use the following address to mail Forms 1128 to Chief Counsel:

    Internal Revenue Service
    Associate Chief Counsel (Income Tax and Accounting)
    Attn: CC:PA:LPD:DRU
    PO Box 7604
    Ben Franklin Station
    Washington, DC 20044-7604

    1. Retain a copy of the Form 1128 in the suspense files for 45 days (for taxpayer inquiries).

    2. At the end of 45 days, destroy as classified waste.

    Note:

    Forms 1128 sent to Chief Counsel in error are sometimes returned to the taxpayer with a letter advising the filer to send the form to the appropriate campus.

  15. If Chief Counsel expertise is needed, the Lead Tax Examiner or Supervisor only can use the information within the Note in paren (2) in IRM 3.13.2.20.


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