3.13.40  Application for Tax Identification Number for Pending U.S. Adoptions

Manual Transmittal

October 24, 2014

Purpose

(1) This transmits revised IRM 3.13.40, Application for Taxpayer Identification Number for Pending U.S. Adoption.

Material Changes

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

(2) Revised IRM 3.13.40.1, Adoption Taxpayer Identification Number (ATIN)- Overview, by revising paren (1) to include attachments necessary to prove a legal adoption is in place.

(3) IRM Procedural Update (IPU) 14U0141 issued 01-17-2014 IRM 3.13.40.1, Revised Adoption Taxpayer Identification Number (ATIN)- Overview, by revising paren (1) to include attachments necessary to prove a legal adoption is in place.

(4) Revised IRM 3.13.40.1.2(3) to delete information that taxpayer's cannot file a Form 1040X to claim Economic Stimulus Payments.

(5) Revised IRM 3.13.40.1.5(2) by adding requirements to include attachments to prove legal adoption.

(6) Revised IRM 3.13.40.3.1(1) d, to state the Form W-7A with a Form 2848, Power of Attorney, was revised to include Declaration of Representation.

(7) IPU 14U0141 issued 01-17-2014 IRM 3.13.40.4.3.7, Revised the title of Line 4 - Child's Sex to be titled Line 4 - Child's Gender.

(8) Revised IRM 3.13.40.4, Tax Examiner Review of Application and Supporting Documentation, by revising paren (2). Added new paragraph information to be used in the fillable paragraph when using the 0096C Letter.

(9) IPU 14U0141 issued 01-17-2014 IRM 3.13.40.4, Revised Tax Examiner Review of Application and Supporting Documentation, by revising paren (2).

(10) Revised the title of IRM 3.13.40.4.3.7, Line 4 - Child's Sex to be titled Line 4 - Child's Gender.

(11) Revised IRM 3.13.40.4.3.12, Signature of Parent(s) by revising paren (2) for clarity.

(12) IPU 14U0141 issued 01-17-2014 IRM 3.13.40.4.3.12, Revised Signature of Parent(s) by revising paren (2) for clarity

Effect on Other Documents

This manual transmittal supersedes IRM 3.13.40 dated November 9. 2013 (effective January 1, 2014) is superseded. The IPUs are also incorporated into this revised IRMS: 13U1725 (effective 12/10/2014) and 14U1014 (effective 1/17/2014).

Audience

Wage and Investment - Austin Submission Processing Center (AUSPC), Wage & Investment - Accounts Management Personnel - Telephone Assistors, Wage & Investment - Taxpayer Assistance Center (TAC) Personnel.

Effective Date

(01-01-2015)

Paul J. Mamo
Director, Submission Processing
Wage and Investment

3.13.40.1  (01-01-2015)
Adoption Taxpayer Identification Number (ATIN)- Overview

  1. This section of the IRM provides procedures for reviewing and processing:

    • Form W-7A, Application for Taxpayer Identification Number for Pending Adoptions.

    • Supporting Documentation (e.g., copy of placement agreement, hospital documentation releasing new born child for adoption, court orders, affidavit signed by adoption attorney or government official placing the child in the home, etc.)

    See Exhibit 3.13.40-1 for a copy of the Form W-7A.

  2. Form W–7A is used to apply for an IRS ATIN and these forms are processed at the Austin Submission Processing Campus (AUSPC).

  3. Treas. Reg. §301.6109-3 provides that an IRS adoption taxpayer identification number (ATIN) is a temporary identification number assigned by the IRS to a child who has been placed by an authorized placement agency in the household of a prospective adoptive parent for legal adoption. Prospective adoptive parents must have an ATIN in order to claim certain tax benefits such as the dependency exemption, Adoption Credit, Child Tax Credit and the Credit for Child and Dependent Care Expenses.

  4. Adopting parents who have custody of a prospective adoptive child cannot apply for a SSN for the child until the adoption is final and a corrected birth certificate is obtained.

    Note:

    If the child already has an existing SSN, some parents may not have access to the SSN due to privacy laws, or the biological parent has not supplied it to the prospective adoptive parent(s). Do not research IDRS for the child's SSN, even if the adoptive parent(s) give you the biological parents name, etc. You cannot provide it to the adoptive parent. Continue processing the Form W-7A.

  5. The Form W-7A and supporting documentation constitute confidential taxpayer information.

  6. 2013 - Adoption Taxpayer Identification Numbers (ATIN) - ELMS 28734 - Tax Examiner Job Aid, contains copies of the ATIN Computer Paragraph (CP) notices.

  7. Since tax year 1997, adopting parent(s) who qualify for and intend to claim the dependency exemption must apply for an ATIN for their adoptive child and list the ATIN on their return.

  8. The Form W-7A is processed under:

    • Program Code: 33060

    • Tax Class: 6

    • Doc Code: 96

    • Document Locator Number (DLN) File Location Code: 18

  9. IRS employees or applicants who have questions about Form W-7A processing can call the ATIN unit in Austin at (512) 460-7898, or information can be faxed to (512) 460-4046. The normal telephone operation hours are from 8:30 a.m. to 3:00 p.m. CST.

3.13.40.1.1  (01-01-2015)
Characteristics of the ATIN

  1. The ATIN is a temporary number used until the adoption is final and the applicant is able to obtain a SSN for their adoptive child.

  2. The ATIN is valid as a dependent Taxpayer Identification Number (TIN) to identify the adoptive child. The ATIN is only valid as a primary TIN when it is used to file a Form 1040 or Form 1040A with an attached Form 8615, Tax for Certain Children Who Have Investment Income of More than $1,900. Form 8615 is used for children who have investment income and must be attached to the child(s) Form 1040 or Form 1040A.

  3. The issuance of the ATIN will not generate Transaction Code (TC) "000" or establish an entity module on Master File, unless the situation described in paren (2) (investment income) exists and the child is the Primary on their Form 1040 or Form 1040A.

  4. The ATIN does not qualify the adoptive parents for Earned Income Credit (EIC) or the Economic Stimulus Payment portion for the child.

  5. The ATIN format is in the same 9-digit format as an Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). An ATIN begins with the number "9" , and the fourth and fifth digits always display with "93" .

  6. The ATIN is assigned in ascending sequential order.

3.13.40.1.2  (01-01-2015)
Who May Apply

  1. A taxpayer may apply for an ATIN for their prospective adoptive child only if they are in the process of adoption and meet all of the following qualifications:

    1. The child is legally placed in their home for an adoption by an authorized person or placement agency that is either Authorized by
    • a State

    • the District of Columbia

    • a U.S. possession

    • the government of a foreign country

    • a political subdivision of any of the foregoing to place children for adoption, OR

    • Biological parents or other persons authorized by state law to place children for legal adoption.

    2. The adoption is a domestic adoption OR foreign adoption,
    AND the child has a Permanent Residence Card, Certificate of Citizenship, OR an "551" stamp in the child's United States or foreign passport

    Exception:

    For Haitian children ONLY, the receipt of a Homeland Security Parole Letter may be used as proof of U.S. residency.

    Note:

    The I-551 stamp indicates the child has gained U.S. citizenship/permanent residency, or the child has a "IR2" , "IR3" , or "IR4" Visa.

    3. Taxpayer qualifies to claim the child as a dependent on their tax return.

    Reminder:

    Taxpayer(s) must meet the dependency tests for claiming the exemption for the child.

  2. If the adoptive child has an existing SSN, but the adoptive parents cannot obtain it, we will issue an ATIN.

    Note:

    If the parent(s) of a foster child placed in the home have filed a petition in court to adopt the foster child or intent to adopt, the foster care agency should be able to obtain the child's SSN. If the parent(s) have made every attempt to secure a SSN from the state/agency/other person(s) and for various reasons are unable to secure it prior to the due date of the return, assign an ATIN.

  3. An ATIN is not a substitute for a SSN to claim certain credits. Therefore, when taxpayers use an ATIN for their dependent, they do not qualify for Earned Income Credit (EIC).

    Note:

    When the adoption is final and the taxpayer receives a SSN for the child, they can file an amended return listing the assigned SSN, if they qualify for EIC.

3.13.40.1.3  (01-01-2015)
Who May Not Apply

  1. A taxpayer should not apply for an ATIN for their prospective adoptive child if:

    • The child has a SSN and the adoptive parent(s) know the SSN or can obtain the SSN from the biological parent(s) or the placement agency.

    • The child is not a U.S. citizen or resident.

      Note:

      Upon the child's entry to the U.S., the Bureau of Citizenship and Immigration Services (formerly INS) should provide enough documentation to apply for a SSN. If the child is not a U.S. citizen or resident, they should apply for an ITIN. (See Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number (ITIN) for more details).
      An example is U.S. citizens living overseas adopt a child overseas and do not plan to enter the U.S. with the child. These child(ren) are eligible for an ITIN and the parent(s) must complete a Form W-7 and attach it to their tax return. If this situation occurs, reject the Form W-7A and send CP 563, Already Assigned/Duplicate Application/Rejecting Application.

    • The taxpayer can obtain a SSN (by filing a Form SS-5, Application for a Social Security Card, with the Social Security Administration (SSA)) for their adoptive child in time to file their tax return.

    • The taxpayer is not eligible to claim the adoptive child as a dependent on their tax return.

    • The child is a foster child and there is no evidence that the "foster parent" has filed a petition in court to adopt the child.

3.13.40.1.4  (01-01-2015)
How and Where to Apply

  1. Applicants may obtain a Form W-7A at the IRS.gov page at http://apps.irs.gov/app/picklist/list/formsPublications.html or using any of the following methods:

    • IRS Offices Worldwide

    • 1- 800 -TAX - FORM (1-800-829-3676)

  2. Applicants can submit Form W–7A and the required documentation in a envelope (using regular first class mail) to the Austin Submission Processing Campus, ATIN unit using the following unique address:


    Internal Revenue Service
    Austin, TX 73301-0066

  3. For all packages, or letters/packages being sent overnight express to the ATIN Unit from other IRS sites, use the following street address:


    Internal Revenue Service
    3651 S. Interregional Highway 35 Stop 6182
    Austin, TX 78741

3.13.40.1.5  (01-01-2015)
Transshipping to AUSPC for Processing

  1. Any Form W-7A received in person by a TAC site or by mail at another Campus must be transshipped with the supporting documentation to AUSPC daily.

    Note:

    Sites other than Austin – Do not forward Form W–7A, Application for IRS Adoptions Taxpayer Identification Number, to AUSPC with Form W-7 Application for IRS Individual Taxpayer Identification Number or Form W-7SP Application for IRS Individual Taxpayer Identification Number (Spanish) on the same Form 3210 Document Transmittal. They MUST be on a separate Form 3210.

  2. If a Form W-7A is accepted or prepared at a TAC site, verify that all required fields of the Form W-7A are completed and the proper supporting documentation is attached. See Form W-7A Instructions for acceptable documentation. The required fields on the Form W-7A are as follows:

    • Adoptive parent(s) Name and SSN (Secondary, only if listed)

    • Adoptive parent(s) address

    • Child's name

    • Child's gender and Date of Birth information

    • Placement Agency Name and address

    • Supporting Documentation Information (documentation from agency, agent, doctor, court official, or biological parent making the placement.)

    • Adoptive parent(s) signature

  3. When transshipping applications to AUSPC, complete Form 3210, Document Transmittal, with adoptive Parent(s) name and SSN.

    Note:

    Notate name and telephone number of employee completing Form 3210. Ensure that the Received Date is edited in the middle of the Form W-7A.

    1. Retain Part 4. Forward Parts 1,2 and 3 to AUSPC ATIN unit.

    2. AUSPC ATIN unit will sign, date, and return Part 3 to the Originating Office.

    3. The Originating Office will attach completed Part 3 to Part 4 and use as a "Maintenance Log" .

  4. Submission Processing Campus (other than AUSPC) – If the Form W-7A is attached to a Form 1040 or Form 1040A, Code & Edit (C&E) will edit and complete the following:

    • Edit "Detached W-7A" in the left margin of the return.

    • Edit the Received Date (current date, if return not stamped) on the Form W-7A.

    • Issue a Letter 0086C, Referring Taxpayer Inquiry/Forms to Another Office, to the applicant to notify them that the Form W-7A was sent to another location for processing.

    • Detach and route the Form W-7A to AUSPC, using a Form 3210.

    • Continue processing the Form 1040 and Form 1040A, but will not code for the exemption for the adopted child, if claimed.

  5. When the Form 1040 or Form 1040A falls out in ERS, the Rejects TE will research Command Code (CC) ATINQ (with the Primary to Secondary SSN) for the STAT-CD to determine the status of the application. If the status of the application is not in "A" STAT-CD (meaning ATIN assigned).

    1. Rejects will suspend until the ATIN is either Assigned or Rejected. Rejects will input the Returns Processing Date as the date the ATIN was Assigned or Rejected (STAT-DT) (as shown on the ASIGN screen).

    2. Process the Form W-7A in Received Date order to reduce the suspense inventory in Rejects and allow posting of the Form 1040 or Form 1040A.

    3. See Figure 3.13.40-1 for a copy of the ATINQ screen showing an ATIN was assigned (900-93-) and in STAT-CD "A" .

    Figure 3.13.40-1
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.13.40.2  (01-01-2015)
Taxpayer Advocate Service (TAS)

  1. The Taxpayer Advocate Service 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 Internal Revenue Service (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 Office of the Taxpayer Advocate (TAS) and its functions within the IRS to assist taxpayers.and its functions within the IRS to assist these taxpayers. 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.

3.13.40.2.1  (01-01-2015)
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, TAS Case Criteria and you can’t resolve the taxpayer(s) issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for 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 AMS, if applicable.

    Note:

    It is important that all IRS employees handle potential TAS cases with the taxpayer's best interest in mind. Refer also to IRM 21.1.3.18, 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 taxpayer’s complaint or inquiry only questions the constitutionality of the tax system; or

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

3.13.40.2.2  (01-01-2015)
TAS Service Level Agreements (SLAs)

  1. The National Taxpayer Advocate and the Commissioner, 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 (OAR).

    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 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 TAS web page.

3.13.40.3  (01-01-2015)
Receipt at AUSPC — Instructions

  1. Mail is opened, extracted, date stamped, placed in boxes, and forwarded to the Adoption Taxpayer Identification Number (ATIN) Unit.

  2. Each box has a Batch Control sheet, Form MAR-8203, which identifies:

    • Batch Number

    • Program Number

    • Number of Boxes in Batch

    • Date (if not present, stamp Batch Control sheet with the date the boxes are received in the ATIN unit).

3.13.40.3.1  (01-01-2015)
Receiving Cases

  1. Sort each batch into the following categories:

    1. Form W-7A and supporting documentation mailed directly from applicant

    2. Form W-7A and supporting documentation from other IRS TAC sites or other IRS Campus Code & Edit (Form 3210 attached)

    3. Form W-7A with Form 1040 or Form 1040A from Austin Code & Edit

    4. Form W-7A with Form 2848 Power of Attorney and Declaration of Representation, attached (or some type of General Power of Attorney)

    5. Converting Forms W-7 (ITIN) to a Form W-7A, See IRM 3.13.40.4.5.

    6. ATIN suspense correspondence

    7. Unsolicited correspondence (e.g., "White Mail" , Request for Extension of ATIN, etc.)

  2. Detached Form W-7As from other Campuses.

    1. When the ATIN clerk receives these Forms W-7A from another campus, they will batch them by the Received Date edited on the Form W-7A.

    2. If no Received Date edited, edit the date on the Form 3210 onto the Form W-7A and use that date as the Batching date.

  3. AUSPC Interoffice Receipts. Form 1040A or Form 1040 with Form W-7A attached– If the Form W-7A is attached to a Form 1040 or Form 1040A, Code & Edit will pull the return from the batch and route the package to the ATIN unit, following local procedures.

    • The ATIN unit will suspend the return until the ATIN is assigned.

    • After the Form W-7A is processed and the ATIN is assigned, the ATIN Tax Examiner (TE) will edit the assigned ATIN in the Dependent's social security number area (Line 6c(2)) on the front of the Form 1040 or Form 1040A and send it back through the pipeline.

    • If the ATIN application is Rejected, the ATIN TE will edit "ATIN Rejected" in the Dependent's social security number (Line 6c(2)) area on the front of the return and send it back through the pipeline.

    • For refund returns only, edit "02RPD" and the date the ATIN was assigned or rejected in the left margin of the return.

  4. Form W-7 With Supporting Documentation – If the ITIN unit receives a Form W-7 with a request for an adoption TIN (domestic or Foreign child who is a U.S. citizen), edit an "A" beside "W-7" .

    1. The ATIN unit will convert the appropriate line information from the Form W-7 to a "dummy" Form W-7A. See IRM 3.13.40.4.5 for additional information.

  5. Stamp or edit the Received Date on all Forms W-7A and correspondence routed to the ATIN unit, if missing.

    Note:

    Use the current date, or Form 3210 date for those transhipped from outside Austin, or the date routed to the ATIN unit from the ITIN unit or AUSPC Code & Edit.

    1. All Form W-7A under Line 5.

    2. Front of all ATIN correspondence.

      Note:

      If a loose Form W-7A is received, separately batch them from the returns with a Form W-7A received from Austin. Work batches in Received Date order.

  6. Bundle each category in blocks of 50. Provide packs to control clerk for preparation of Batch Control Log.

  7. Place blocks on batch carts with Batch Control Log and release to Technical Unit.

  8. Acknowledge receipt of all Forms 3210 and return Part 3 immediately to Originating Office. Maintain Form 3210 for six (6) months.

  9. Follow local procedure for acknowledging receipts from areas within the Austin campus.

  10. After the batch has been edited by the Tax Examiner, route the batches to Numbering prior to ISRP.

3.13.40.4  (01-01-2015)
Tax Examiner Review of Application and Supporting Documentation

  1. The applicant is instructed to send a copy of the original documentation. If the documentation is original, make a copy of the documentation and send the original documentation back to the applicant.

  2. If the taxpayer indicates on the Form W-7A that neither the biological mother nor an adoption agency placed the child in the home of the applicant(s) or that the adoption was finalized, return the Form W-7A and the Letter 0096C, Acknowledgment Letter for General Use/Inquiry.

    1. Use the Correspondex system and indicate the Form W-7A is being returned. Use the fillable paragraph Q and type the information shown in para b or para c to the 0096C Letter depending on the reason the ATIN was not assigned.

      Note:

      The 0096C letter is used in sensitive circumstances such as the birth mother agrees to the adoption, but changes her mind before it is finalized. Another example is the adoption was finalized, but the child did not live. Use the information in paren (c) in the cases where the child was not placed in the adoptive parents home.

      If... Then use fillable para Q in 0096C letter...
      a. birth mother agrees to adoption, but changes her mind The documentation you supplied indicates that neither of the biological parents released the child to you for the purposes of adoption. If an agency is not involved in the adoption, you may submit a newly completed Form W-7A and attach an affidavit signed by one of the biological parents which states he or she is placing the child with you for the purposes of adoption
      b. baby/child not placed in adoptive parent(s) home
      c. placement does not occur Upon review of your Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, the child you intended to adopt does not qualify for an Adoption Taxpayer Identification Number (ATIN). However, Title 26, Section 23, of the U.S. Code allows the IRS to accept adoption documentation in lieu of a child’s tax number on Form 8839, Qualified Adoption Expenses.
      d. health issues and placement does not occur
      e. baby/child dies before placement in home
      f. no adoption placement Upon review of the Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, the child you intended to adopt does not qualify for an Adoption Taxpayer Identification Number (ATIN). To qualify, the adoptive documentation must clearly establish the child has been placed in your home for the purposes of adoption.
  3. On each application, you will first check for Primary SSN validity (i.e., does not begin with 9, does not contain all zeroes, and contains 9 digits). This does not mean you check IDRS for validity. Make any corrections to the Received Date format and any address editing required for ISRP input. Also, check the attached documentation to determine the Documentation Code you will edit in the bottom margin of the Form W-7A.

  4. If there is an indication of a foreign child, and no citizenship or residency documents are present, then edit Documentation Code "0" . Once you have determined that the form will be rejected, you can discontinue reviewing the Form W-7A for any missing line entries or attachments. However, the Parent's Name and address info must be complete in order to generate CP 563. After ISRP input, then reject the application with Status Code "R" and applicable Reason Code "04" .

  5. To ensure that the adoption is truly underway and that the supporting documentation is attached to the correct Form W-7A, ALL of the following information must be included in the application packet. Review Form W-7A and its supporting documentation to ensure the following is clearly indicated.

    1. A statement that clearly establishes that the child listed on Form W-7A was placed in the applicants home for the purposes of adoption

    2. Adoptive parent(s) full name(s)

    3. Adoptive child's full name

    4. Child's date of birth

    5. Date the child was placed in the applicants home

    6. Name of the placement agency or agent authorized to perform adoption placements. An authorized agent might be a private attorney, court judge, an official of a foreign government, or one of the child's biological parents.

  6. If the required information is either not present with the supporting documents or does not match the Form W-7A, suspend using the appropriate Documentation and Status Reason Codes.

  7. Edit the Documentation Code to Form W-7A in the margin to the right of line 5. The conditions are found in the Form W-7A packet and are used to determine the appropriate Documentation Code. See the following table for further information:

    If... Then...
    Documentation is a foster care agreement with no mention of adoption Edit Document Code 3
    (Used only if Reason Code 12 applies)
    There is an indication they are in the process of adopting a foster child but do not mention any attempt to secure the child's SSN, suspend for an explanation. Edit Document Code 3
    (Used only if Reason Code 12 applies)
    Documentation is not clearly for the child listed on the application Edit Document Code 2
    (Used only if Reason Code 11 applies)
    Documentation does not establish that the placement is for adoption by the parent(s) listed on the application Edit Document Code 2
    (Used only if Reason Code 11 applies)
    Documentation is missing Edit Document Code 0
    (Used if Reason Codes 01-10 apply)
    Form 2848, Power of Attorney (POA) is attached and neither Document Code 2 nor 3 applies Edit Document Code 0
    (Used if Reason Codes 01-10 apply)
    Adoptive child is foreign born and no citizenship or residency documents, or appropriate visas or visa statements are attached and neither Document Code 2 nor 3 applies. Edit Document Code 0
    (Used if Reason Codes 01-10 apply)
    Acceptable documentation is present and no other Document Code applies. Edit Document Code 1
    (Used when no reason code applies but may be used for Reason Codes 01-08 and 10)
  8. After editing the "Documentation Code" , you will input the applicable "Status Reason Code(s)" on the ASIGN screen. See the following table for further information:

    If... Then input Status Code S with Status Reason Code...
    1. Child's Name
    (Line 3a) Blank and cannot be determined from attachments
    01 (Used with Documentation Code "0" or "1" )
    2. Date of Birth
    (Line 4) – blank and cannot be determined from attachments
    02 (Used with Documentation Code "0" or "1" )
    3. Placement Agency Name 05 (Used with Documentation Code "0" or "1" )
    4. Placement Agency Address 06 (Used with Documentation Code "0" or "1" )
    5. Date Child Placed in Home 07 (Used with Documentation Code "0" or "1" )
    6. Form W-7A Signature(s) missing 08 (Used with Documentation Code "0" or "1" )
    7. No Documentation attached 09 (Used with Documentation Code "0" )
    8. SSN Mismatch 10 (Used with Documentation Code "0" or "1" )
    9. Documentation is not clearly for the child listed on the application 11 (Used with Documentation Code "2" )
    10. Documentation does not establish the placement is for adoption by the parent(s) listed on the application 11 (Used with Documentation Code "2" )
    11. Documentation is a foster care agreement with no mention of an adoption 12 (Used with Documentation Code "3" )
    12. If there is an indication they are in the process of adopting a foster child, but do not mention any attempt to secure the child's SSN, suspend for an explanation. 12 (Used with Documentation Code "3" )

    Note:

    Most of the Status Reason Codes are used in conjunction with the input of Status Code "S" to suspend for Required entry fields.
    Status Reason Code "04" is used with Status Code "R" to reject an application when there is a foreign adoption and the child is not yet a U.S. citizen.

    .
    Search all attachments for the missing information to avoid unnecessary correspondence.

  9. If a Form 2848, Power of Attorney (POA), is attached, edit a Documentation Code "0" with no Status Reason Code. Flag the return, following local procedures, to process the POA and input the information to ASIGN. See IRM 3.13.40.4.4.

3.13.40.4.1  (01-01-2015)
Editing – General Information

  1. Always use red for edit marks. If the applicant has entered red marks on the form which might interfere with transcription, edit with another color.

  2. Never alter, obliterate or erase the applicants' entries.

  3. If a required item is missing, illegible or obviously misplaced, attempt to correct the form by securing the information from the supporting documentation.

  4. Edit Documentation Code "1" in the bottom margin, if all items are present on the supporting documents. If unable to perfect, edit the proper Documentation Code. Once the application is input and the record is established, incomplete applications should be returned to the ATIN unit for IDRS and ASIGN work. See IRM 3.13.40.6.2, Suspending Applications – Status Code "S" , for suspense procedures.

3.13.40.4.2  (01-01-2015)
Types of Edit Marks

  1. Circling-

    • A circle is used to delete incorrect data. If more than one Received Date is present, circle any later received dates. Keep the earliest Received Date.

  2. Arrowing-

    • If the applicant has misplaced an item that is close to the correct line, draw an arrow from the misplaced entry to the correct line. Also, arrow the Names, if applicant wrote them in the incorrect order. (e.g., First name, then Last name)

3.13.40.4.3  (01-01-2015)
Validating and Editing Line by Line Instructions

  1. For general editing information and type of edit marks allowed, see IRM 3.13.40.4.2, Types of Edit Marks.

  2. Sign out a block of work in numeric order from Batch Control Log. Enter your TE stamp number and date completed.

  3. If more than one received date is stamped, circle out all but the earliest received date.

  4. The following information may be present on the supporting documentation to help you complete any of the required fields that are blank. For ISRP input, only research IDRS for incomplete name (Line 1a/1b) or address (Line 2), and invalid Primary/Secondary SSN (e.g., less than 9 digits) info. If there are other blank lines on the form and you can determine these from attachments, then edit them on the Form W-7A. Otherwise, leave them blank.

    1. Adoptive Parent(s) full name, address and SSN

    2. Adoptive Child's full name

      Note:

      The full name may be indicated as "Baby Girl" or "Baby Boy" pending final adoption. This is acceptable for the first name.

    3. Date of Birth of Child

    4. Sex of Child

    5. Placement Agency Name and address

  5. If the Form W-7A is not signed, continue to process. Edit applicable Documentation Code and input Reason Code "S" , Suspense Reason Code 08, and any other applicable Reason Codes for the missing information that cannot be perfected from information on attachments.

3.13.40.4.3.1  (01-01-2015)
Line 1a - Primary Applicant and SSN

  1. Name — Required entry. At a minimum, the last name must be present. If missing, search attachments or research IDRS and edit on Line 1a.

  2. Verify that the name is spelled correctly, is legible and is listed in order of:

    • Last Name

    • First Name

      Note:

      Arrow to correct place, if backwards.

  3. Social Security Number—required entry. If missing or incomplete, search attachments or research IDRS and edit on Line 1a.

3.13.40.4.3.2  (01-01-2015)
Line 1b - Secondary Applicant and SSN

  1. Name—Required only if two people signed the application. If two people signed the return, at a minimum the last name should be present or entire name must be edited using the name on the signature line.

  2. Verify that the name is spelled correctly, is legible and is listed in order of:

    • Last Name

    • First Name

      Note:

      Arrow to correct place, if backwards.

  3. Social Security Number — If missing or incomplete and cannot be found on an attachment, research IDRS.

3.13.40.4.3.3  (01-01-2015)
Line 2 - Adoptive Parent(s) Address

  1. This is a required entry.

  2. The address must be complete and legible and contain the following information:

    • P.O. Box, street address including apartment number, or rural route number

    • City or Town

    • State or foreign city and country names are separated by a slash (/). See Exhibit 3.13.40-2, Country Codes.

    • ZIP Code or Postal Code

    Country Codes.

  3. Perfect address as follows:

    If... Then...
    Address is domestic 1. City must be spelled out - cannot use Major City Code.
    2. State Code must be present.
    3. If USA or U.S. is notated, then circle out.
    4. Zip code must be present. Research IDRS, if missing.
    Address is foreign
    a. Ensure both the city and country names are spelled out. Edit a slash between the city and country names. See Exhibit 3.13.40-2.
    b. Postal Code must follow the country name.

    Note:

    When there is a foreign address, ensure that the child qualifies for an ATIN and not an ITIN. If the parents are military or other U.S. citizens living outside the U.S. and the child is a U.S. citizen, they qualify for an ATIN if the child has entered the U.S. with a parent. There is an exception to this, but you would not know unless they provided the information on an attachment. The exception is if the parent who is a U.S. citizen does not plan to enter the U.S. with the child, they must get an ITIN.

3.13.40.4.3.4  (01-01-2015)
Line 3a - Child's Name

  1. This is a required field. Both a first and last name are required. If missing and cannot be entered from an attachment, suspend with Status Reason Code "01" .

    • "Baby" is acceptable as the first name if entered by the parent.

      Caution:

      Do not edit "Baby" for a missing first name.

    • To set-up the DM-1 file for successful processing of the dependency on the return, the last name must be the name the parent intends to use on the return for the child. It is not acceptable if "Baby Girl" or "Baby Boy" are listed as the first and last names. If a proper last name cannot be edited from an attachment, suspend the case.

  2. Verify that the name is spelled correctly, is legible and is listed in order of:

    1. Last Name

    2. First Name

    Note:

    Arrow to correct place, if backwards.

3.13.40.4.3.5  (01-01-2015)
Line 3b - Child's Birth Name

  1. Not Required.

    Note:

    If "Baby Girl" or "Baby Boy" is indicated as the name of the child, circle it out.

  2. If proper name is present, verify that the name is spelled correctly, is legible and is listed in order of:

    1. Last Name

    2. First Name

    Note:

    Arrow to correct place, if backwards.

  3. If missing, do not transfer child(s) name from supporting documentation. If only last name present, circle it out. If only first name is present, edit the last name of the parent entered on Line 1a.

  4. If blank, do not correspond.

3.13.40.4.3.6  (01-01-2015)
Line 4 - Child's Date of Birth

  1. This is a required field. If missing or incomplete and cannot be found on an attachment, suspend with Status Reason Code "02" .

  2. Date of Birth must be in MMDDYYYY format. (i.e., November 6, 2012 — 11062012). If not, edit date in correct format.

3.13.40.4.3.7  (01-01-2015)
Line 4 - Child's Gender

  1. This is a required field. If a box is not checked indicating "Male" or "Female " , use the following chart to determine which box to check, or circle.

  2. If no box or both boxes are checked, try to determine the sex of the child from the Child's name or review supporting documentation, such as birth records, then check (or circle) the appropriate box.

    If... Then...
    No box is checked, Check the appropriate box, if able to determine by the name or attachments.
    Both boxes are checked Circle out the "check box" that does not apply, if able to determine.
    Unable to determine the gender, Check the "Female" box.

3.13.40.4.3.8  (01-01-2015)
Line 4 - Child's Place of Birth

  1. This is a required field.

  2. If present, verify that the place of birth is in the correct format for ISRP input.

  3. If foreign place of birth, put single slash between city (or city and province) in City field and edit Country Code in State field. Postal Code belongs in the Zip Code field.

    Caution:

    If foreign, review supporting documentation for permanent residence status. (i.e., Permanent Resident Card ("green card" ), "I-551" on the passport, or Certificate of Citizenship, IR2, IR3 or IR4 visa). This will help you determine whether to reject it, and if you will only need to perfect the Required fields.

  4. If unable to determine, edit "Washington, D.C." in the field. Do not correspond, since the Instructions state, "If you know the child's place of birth, enter it on line 4."

3.13.40.4.3.9  (01-01-2015)
Line 5 - Placement Agency/Agent Name

  1. This is a required field.

  2. Verify that the name is complete and legible.

  3. If blank, review supporting documentation and edit it to the Form W-7A.

  4. If words "Private Adoption" are present, then circle out. Search the attachments for the name of agency or lawyer's name to edit.

  5. If unable to determine, suspend with Status Reason Code "05" .

3.13.40.4.3.10  (01-01-2015)
Line 5 - Placement Agency/Agent Address

  1. This is a required field.

  2. Verify that the address is legible and in the correct format for ISRP input.

  3. If a foreign address, ensure both the city and country names are spelled out. Edit a slash between the city and country name. See Exhibit 3.13.40-2, Country Codes, for foreign country codes.

  4. If unable to determine, suspend with Status Reason Code "06" .

3.13.40.4.3.11  (01-01-2015)
Line 5 - Date Child Was Placed with Adoptive Parent(s)

  1. This is a required field.

  2. If the Date of placement is present, but not in the correct format, edit the date in "MMDDYYYY" format.

  3. If blank, review supporting documentation and edit it to the Form W-7A. If more than one date is shown on the attachment, edit the earliest date.

  4. If unable to determine, suspend with Status Reason Code "07" .

3.13.40.4.3.12  (01-01-2015)
Signature of Parent(s)

  1. This is a required field.

  2. If two people are applying, then there must be two signatures listed in Line 1b.

    1. Signature of the Primary applicant must match the signature on the substantiating documentation.

      Note:

      Faxed signatures are acceptable on the Form W-7A, as well as on a response to the CP 562A, Request for Additional Information.

    2. If an applicant cannot sign their name, then they must sign their mark in the presence of a witness. The witness's signature is also required.

    3. If someone other than the Parent(s) signs the application, then a Form 2848 Power of Attorney, (or acceptable Power of Attorney (POA)) must be attached and acceptable, or already posted on CC CFINK (with Form W-7A as the Form) before you can continue to process the return. See IRM 3.13.40.4.4 for POA instructions.

    Caution:

    One spouse cannot sign for the other.

  3. If signature area is blank, or only one signature is present for a joint adoption, circle out the one existing signature suspend with Status Reason Code "08" .

  4. The Signature Date of the application must be in MMDDYYYY format. If there is no date present, edit the received date. Always edit in MMDDYYYY format, if not written in that format by the applicant.

  5. Phone number. Take no action.

3.13.40.4.4  (01-01-2015)
Form 2848, Power of Attorney

  1. This field cannot be input by ISRP. If there is a "General or Durable Power of Attorney" or Form 2848 Power of Attorney, attached for "Form W–7A" , and all of the criteria in (7) below are complete, edit Documentation Code "0" for ISRP input. If you have questions about whether to accept the Form 2848 or General POA to the Centralized Authorization File (CAF), refer to your work leader. If the POA is complete, input the Power of Attorney (POA) name and address fields on the ASIGN screen. If not, then do not input the POA into the ASIGN screen. Notify the applicant the reason that the POA is not acceptable, using the Letter 2673C, Representative Response.

  2. A copy of all correspondence sent from the database will automatically generate to the POA. In order to do this, you must always edit "Documentation Indicator" "0" with no Status Reason Code, to prevent it from auto assigning. When it comes back from ISRP, input the POA information on the ASIGN screen, in order for the POA to receive the correspondence. Once the POA information is input, you can input STAT-CD "A" to both assign the ATIN and generate the notice to both the POA and applicant, if application is acceptable. If there is information missing, you can also suspend and correspond at this point.

  3. Taxpayers will occasionally submit a Form W-7A that has been signed by their enrolled agent, or some other representative. These personal representatives must submit a Form 2848, Power of Attorney with Part II completed; or there must be an acceptable General/Durable POA established on the Centralized Authorization File (CAF) file.

  4. Taxpayers may also submit a Form 8821, Tax Information Authorization, as documentary evidence for signing the application; however, Form 8821 does not authorize the signing of the application. Correspond for a Form 2848, Power of Attorney, if the taxpayer submits a Form 8821.

  5. For a representative to have authority to act on behalf of a taxpayer, the taxpayer must provide the representative with an acceptable, written power of attorney (as described in (7) below) and the representative must provide a declaration of representative (as described in (8) below).

  6. A completed Form 2848, Power of Attorney, satisfies all requirements for both a power or attorney and a declaration of representative. Part I of Form 2848 satisfies the requirements for a power of attorney described in (7) below, and Part II of Form 2848 satisfies the requirements for a declaration of representative described in (8) below.

    1. If Line 3b on Form 2848, "Tax Form Number" , is anything other than "Form W-7A" , then do not update the ATIN database. You can still route the Form 2848 to the CAF unit, but you should send the representative a Letter 2673C, Representative Response, acknowledging the receipt of the Form 2848 and explaining that you sent it to be processed for the tax form indicated, rather than for the Form W-7A. If the representative still wants to act on behalf of the taxpayer, he/she must submit a revised (new) Form 2848 to include a Form W-7A.

  7. If a representative submits a power or attorney that is not on Form 2848, Power of Attorney, it must include all of the following items to be sufficient to process the Form W-7A.

    1. Name and mailing address of the taxpayer;

    2. Taxpayer Identification Number (TIN) of the taxpayer;

    3. Name and address of the representative;

    4. Description of the matter(s) for which the representative is authorized, which, if applicable, must include:
      The type of tax involved
      The tax form number (for ATIN purposes, Form W-7A); and
      The specific years(s)/period(s) involved; and

    5. A clear expression of the taxpayer's intention concerning the scope of authority granted to the representative(s).

    However, even if a representative submits a power of attorney that contains all of these items, the power of attorney cannot be processed onto the Centralized Authorization File (CAF) without a completed Form 2848, Power of Attorney, attached. Note that, in this situation, Form 2848 is not the actual power of attorney and does not need to be signed by the taxpayer.

  8. If a representative submits a power of attorney that is not on Form 2848, the representative must also provide a written "declaration or representative" stating the following:

    1. I am not currently under suspension or disbarment from practice before the IRS;

    2. I am aware of regulations contained in Treasury Department Circular No. 230 (31 CFR part 10),

    3. I am authorized to represent the taxpayer(s) identified in the power or attorney; and

    4. I am an individual authorized to practice before the IRS under Circular 230.

  9. A power of attorney that does not contain one or more of the items of information described in (7)(a) through (7)(d) above is defective and cannot be accepted as long as the defect remains. The representative can cure the defect by signing (on behalf of the taxpayer) a Form 2848, Power of Attorney, that includes the missing information and attaching this Form 2848 to a copy of the original power of attorney, under the following conditions:

    1. The original power of attorney authorizes the representatives to handle, among other things, Federal tax matters (e.g., if the power of attorney says that the representative has the authority to perform any and all acts, then the representative has authority to handle Federal tax matters); and

    2. The representative attaches to the Form 2848 a statement (signed under penalty of perjury) which states that the original power or attorney is valid under the laws of the governing jurisdiction (e.g., if the taxpayer resides and executed the original power of attorney in State A, the representative should state that the power or attorney is valid under the laws of State A).

  10. If someone other than the applicant signs the Form W-7A, research CC CFINK under Centralized Authorization File (CAF) to verify the personal representative is authorized to sign the Form W-7A for that year.

    If... And... Then...
    The signature on the application matches a representative listed on CFINK   Continue processing the application.
    The signature on the application does not match a representative listed on CFINK, or no record is found Form 2848, Power of Attorney, is attached
    1. Detach from Form W-7A and route to the nearest Centralized Authorization File (CAF) unit.
    2. Continue processing the application.
    3. Leave an action trail on the Form W-7A and Form 2848.
    Form 2848, Power of Attorney, is not attached Correspond for a new Form 2848 if a different type of tax or period is indicated on CFINK (e.g., Form 1040).

    Note:

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

  11. Use the following addresses when routing or faxing a Form 2848, Form 8821, or "acceptable" General/Durable POA to a Centralized Authorization File (CAF) Unit. Refer to Web page for CAF contacts. The CAF Contacts information will display.

    CAF Unit Fax Number Address
    Memphis
    (generally, all states EAST of the Mississippi River)

    855–214–7519

    Memphis (MAMC)
    PO Box 2608.
    Stop 8423
    Memphis, TN 38118
    Ogden
    (generally, all states WEST of the Mississippi River)

    855-214-7519

    Ogden (OAMC)
    1973 N. Rulon White Blvd
    M/S 6737
    Ogden UT 84404
    Philadelphia
    (APO, DPO, FPO, American Samoa, Guam, VI, Foreign country)

    855-772-3156

    Philadelphia (PAMC)
    2970 Market St
    International CAF MS-E08.124
    Philadelphia, PA 19104
    Fax Number outside the United States (US) 267-941-1017
  12. You may accept a fax of Form 2848, Power of Attorney, if you are in telephone contact with a taxpayer to secure missing data or respond to questions, or gathering information to make an application processable. During telephone contact, you can accept information to complete incomplete line information, but the Documentary Support must be mailed or faxed. It must be attached to the Form W-7A. After reviewing the Form 2848, forward to the Centralized Authorization File (CAF) unit for processing, if complete. Then, input POA to the ASIGN screen.

  13. If correspondence is attached to the application that is unrelated to the Form W-7A application, but needs to be detached and routed to the appropriate functional area, attach a photocopy of the POA/TIA to the correspondence. Indicate that the POA form has been detached and routed to the CAF unit.

3.13.40.4.5  (01-01-2015)
Converting Form W-7 (ITIN) to a W-7A (ATIN)

  1. If the ITIN unit receives a Form W-7 with a request for an adoption TIN that is for a domestic adoption, they will edit an "A" to the right of the "7" in the upper left corner and route the Form W-7 (and possibly attached tax return) to the ATIN unit. The ATIN unit will convert the "Required field" lines onto a "Dummy" Form W-7A. Use the name on the signature line and Applicant's mailing address to research IDRS for the parents name and TIN.

  2. If there is supporting documentation attached regarding the adoption, make every attempt to use the information provided on the Form W-7 and attachments to convert the information to a Form W-7A and process the "Dummy" application for a ATIN. Edit the Documentation Code in the bottom margin and the "Required entries" on the "Dummy" Form W-7A as indicated below. Attach the Form W-7 behind the "Dummy" Form W-7A and "X" it.

    Edit info from the following lines on the Form W-7, attachment, or IDRS: To the following lines on the Form W-7A:
    Received Date Edit "Recd" and date in "MMDDYYYY" format under Line 5.
    1a. Primary Parent’s last name, first name or Signature Line.

    Note:

    Use the name on the Signature line of Form W-7 and attachments to determine name(s) and TIN(s) to edit, or look on dotted line to the right of box d.

    1a
    Primary SSN– Research IDRS or look on the dotted line to the right of box d. 1b
    2 – Domestic Address 2
    1a Child’s name Determine whether the child's name is on Line 1a or from attachment. The Required Documentation for the Form W-7 should be the child's (dependent) 3a
    4 – Date of Birth 4 – MMDDYYYY format
    5 – Male/Female – If blank, see IRM 3.13.40.4.3.7 for the rules. 4
    4 – City of Birth 4
    4 – Country of Birth 4
    6g -Adoption Agency – Use any attachment to make determination. 5 – Name and Address of Agency
    6d – Date Child was placed with adoptive parents – If Entry Date in U.S. is present, edit this date. 5 – Date Child was placed with adoptive parents - MMDDYYYY format
    Signature Indicator – If Form W-7 is signed (or attached tax return is signed), edit a "1" on the signature line. Edit "1" on first signature line.
    (As long as the primary taxpayer's signature is present on Form W-7 or attached tax returns, do not correspond for the spouse's signature).
    Signature Date If present on Form W-7, edit date in MMDDYYYY format. If date not entered by TP, use Received Date.
    Phone Number If present, edit the numerals.
    Documentation Indicator(s) - There are different documents required to be attached to the Form W-7. Use same criteria as shown in IRM 3.13.40.4, Tax Examiner Review of Application and Supporting Documentation.

    Note:

    Research CC INOLE for the parent(s) complete name and SSN. Check on the dotted line beside boxes "d" or elsewhere on the form or attachment(s) for clues to research for the conversion items on the "Dummy" Form W-7A.

  3. If you are unable to covert all of the line items to the "Dummy" Form W-7A, or the Placement Agency information is missing, then suspend to correspond. After ISRP input, then:

    1. Input "S" in the STAT-CD field,

    2. Input applicable Status Reason Codes in STAT-RSN-CD field, and

    3. Input "Conversion of W-7" in the Remarks.

  4. Once the ATIN is assigned, edit the ATIN in the Dependent's social security number area on Line 6c(2), if the individual tax return is attached. If the ATIN is assigned after April 15th, then edit "02 RPD" and the date the ATIN was assigned in the left margin of the tax return, if it is a refund return. Route the return to Receipt and Control for processing.

3.13.40.4.6  (01-01-2015)
Rejecting Forms W-7A - Need to File Form W-7 (ITIN)

  1. If the Form W-7A is received without a tax return and the adoptive parent(s) is U.S. citizen(s) living abroad and the child has NOT been issued a Passport, Permanent Resident card, or Certificate of Citizenship because they do not plan on entering the United States, you must edit the Form W-7A for ISRP input, then reject the application.

  2. Reject the Form W-7A and issue CP 563, Already Assigned/Duplicate Application/Rejecting Application.

    1. Input Status Code "R" , and

    2. Status Reason Code "04" .

  3. If the Form W-7A is attached to the tax return, route the package to the ITIN unit, instead of rejecting with a CP 563.

    1. Attach a note or "buck slip" explaining that the child is not a U.S. citizen and needs an ITIN, instead of an ATIN.

    2. Attach Form W-7 to the front of the tax return.

    3. Include any legal documentation received with the W-7A application.

    4. Complete Line 6c of the tax return with the child's name, etc. Leave Line 6c(2), Dependent's Social Security Number (SSN) blank and the IRS will fill that in when the ITIN is assigned.

  4. Route any misdirected Form W-7, with or without attached return, to the ITIN unit.

3.13.40.5  (01-01-2015)
Processing After ISRP Input

  1. Once work is completed by ISRP, it will be returned to the control clerk in the Clerical Unit.

  2. The control clerk will prepare Processing Control Log and release the work to technical units on a "First In, First Out" basis.

  3. Tax Examiners will sign out blocks of work on the Processing Control Log in DLN order.

  4. The unit manager will establish quality controls.

  5. ATIN program will generate a daily report, the "ATIN Auto Assignment Report" . The report will list all DLN records where no errors were found and the program automatically assigned the ATIN.

    Note:

    Clerical Unit will use the listing to write ATIN on the Form W-7A before assigning batch of work to technical unit. When the technical unit receives the work, they will bypass those records already assigned an ATIN and work only those records that have errors.

  6. All applications will be held systemically for 3 days to allow for quality review.

3.13.40.5.1  (01-01-2015)
Command Codes (CCs)

  1. The Command Codes for ATIN are described below and they are in your "profile" . This is not an all inclusive list of Command Codes that you could use to process these applications. Any other Command Codes you need can be added to your Employees Security File ("profile" ) with your manager's approval.

  2. You will use both IDRS Command Codes, as well as the ones specific to updating the ATIN database. Some of the IDRS Command Codes that are available to you are listed below.

    IDRS Command Codes Definition
    SINON Used to sign on to IDRS. Input CC SINON.
    SINOF Used to sign off IDRS. Input CC SINOF.
    CC SINOF must be used when leaving the terminal or at the end of the shift.
    INOLE
    Definer "T" or "S"
    Used to access the National Account Profile (NAP) which contains selected entity information for all Master File (MF) accounts, such as addresses.
    NAMES/NAMEI Used to research the Name Search Facility (NSF) for a previously assigned ATIN.
    ATINQ
    (One space between command code and SSN)
    Used to research the ATIN database using the Primary or Secondary SSN.
    Research Command Code only.
  3. The ASIGN Command Codes are ONLY available to the ATIN unit. ATIN Tax Examiners are the only ones who have access to assign, or update an ATIN status. Other IRS functions will access the status of the ATIN using CC ATINQ with the Primary or Secondary SSN. The following Command Codes are specific to the ATIN database.

    ATIN Command Codes Definition
    ASIGNR
    (No space between command code and DLN)
    Used to access the ATIN database using the DLN assigned to the Form W–7A application.
    Must access CC ATINQ (using the Primary and Secondary SSN to research for possible duplicate applications.
    ASIGNT Used to access the Form W–7A application using the primary or secondary applicant SSN.
    ASIGNU Used to update the application record. Screen appears after entering ASIGNR or ASIGNT.
  4. See Figure 3.13.40-2 for a display of the elements on the CC ASIGN screen.

    Figure 3.13.40-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.13.40.5.2  (01-01-2015)
Status Codes

  1. The status codes in the STAT-CD or EXT-STAT-CD fields identify the status of the Form W-7A application and help other functions resolve accounts, such as Telephone Assistors and Tax Examiners in Rejects, in addition to the ATIN unit.

  2. Applications that have been auto assigned will be in "A" status and have ATINs notated by the Clerical Unit above the title on Form W-7A. Do not work these applications. Work only those applications that do not have an ATIN notated.

  3. Status Codes "U" or "H" are generated in the STAT-CD field from the ISRP input of a Form W-7A.

    1. Status "U" indicates that no duplicate applications were found, but the ATIN could not be auto assigned due to some problem with the data.

    2. Status "H" indicates that a possible duplicate application was found on the ATIN database.

      Note:

      In both instances, carefully review the account to ensure that this is not an application for a twin, or from the same parent for a different child (multiple adoptions).

    See Figure 3.13.40-3.

    Status Code Definition
    U Identifies unworked application — Computer Generated
    H Identifies potential duplicate applications exist — Computer Generated
    Research CC ATINQ (using Primary/Secondary SSN) to determine if ATIN has already been assigned and should be Rejected using "01" , or if the application is in process and should be Rejected using "02" .

    Figure 3.13.40-3
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  4. The status codes which can be assigned by a Tax Examiner are "A" (Assigned), "S" (Suspended for correspondence), or "R" (Rejected). Status Code "A" can be generated if the Documentation Code "1" is input by ISRP and no other field errors on the document. In this instance, the ATIN will be "Auto-Assigned " .

    Status Code Definition
    A Entered by Tax Examiner—Used to assign the ATIN when application is complete and documentation is sufficient
    Note: Status Code "A" will be Computer Generated when application is auto assigned.
    S Entered by Tax Examiner—Used with Suspense Reason Code to suspend for missing required fields, Signature, Documentation, or question a Foster Child.
    R Entered by Tax Examiner or Computer Generated–Used with a Reject Reason Code to reject application.
  5. Status Code "E" generates when the ATIN has expired. This occurs when:

    1. Account has been in Status Code "A" for 24 months. Actually, the system allows the ATIN to stay active for 3 additional months.

    2. Account has been in Extension Status Code "A" for 24 months. When an ATIN is issued, the IRS advises the applicant that the extension is only good for one year. However, the ATIN will remain active on the system for two years. After one year, the applicant must provide the IRS with the status of the child's SSN application. Once the status is provided, the ATIN can be Reject or left in Extension Status "A" .

    3. Most of our CP notices contain a "stub" with a request for the applicant to mail us the child's SSN, once assigned. If we input the child's SSN into the system, an "E" generates.

  6. When you see "E" in the STAT-CD or EXT-STAT field under any of the ATIN Command Codes, it indicates that the ATIN is no longer valid on the DM-1 for filing a Form 1040 or Form 1040A.

    Status Codes Definition
    E Used to indicate that ATIN has expired – Computer Generated.

3.13.40.5.3  (01-01-2015)
Computer Generated Status Codes

  1. The computer will generate Status Code "A" in the STAT-CD field when all fields are valid and Documentation Code is "1" .

  2. The computer will generate Status Code "E" in the STAT-CD field when the original 2 year time frame has Expired and no extension approved.

  3. The computer will generate Status Code "R" in the STAT-CD when there is no reply to CP 562C (request for additional information to approve an extension).

    Reason Status Code Reason Code Generate CP Notice
    Documentation Code "1" input by ISRP A – Assigned   CP 560A
    No Reply to CP 561, 01 with a Request for Extension - ATIN will expire in 6 months E – Expired 03 CP 561
    "S" Status - suspended for correspondence, for 75 days, indicating No Reply R – Rejected 03 CP 563

3.13.40.5.4  (01-01-2015)
Status Reason Codes

  1. When you input a Status Code "A" , you DO NOT enter a Reason Code to generate the CP 560A. However, if you input a "S" , or "R" , you must enter a Reason Code to generate the CP Notice with the correct paragraph.

  2. Following is a list of the valid Status Code, Reason Code and CP Notice that a TE can input.

    STAT-CD STAT-RSN-CD Definition CP NOTICE
    A   Assigned ATIN CP 560A
    S 01 Name of Child CP 562A
    S 02 Date of Birth CP 562A
    S 03 Place of Birth CP 562A
    S 05 Placement Agency Name CP 562A
    S 06 Placement Agency Address CP 562A
    S 07 Date Child Was Placed CP 562A
    S 08 Signature CP 562A
    S 09 Documentation Missing CP 562A
    S 10 SSN Mismatch CP 562A
    S 11 Documentation did not agree, or incomplete CP 562A
    S 12 Foster Care CP 562A
    R 01 ATIN has already been assigned CP 563
    R 02 Duplicate application was found CP 563
    R 04 Foreign Child CP 563

3.13.40.6  (01-01-2015)
Researching the Database – Status Code "U" or "H"

  1. Input CC ATINQ followed by the Primary/Secondary SSN.

  2. CC ATINQ will display all applications on file for the applicant. If more than one application is on file for the applicant, page up or down through each application.

  3. Review the adoptive child information in each application to make sure the current application is not a duplicate.

  4. If you determine the current application fits one of the following scenarios take the following steps:

    If... Then...
    1. One application is found (original application) Input CC ASIGNR, using Home key to move DLN to proper location then page up, this will respond with the ASIGNU screen.
    2. More than one application is found, a. Page through to find the application you want to work.
    If more than one application, try to determine if it is a duplicate, or in process of being assigned an ATIN.
    If it is a duplicate and the assigned ATIN is not expired, do not reject.
    If the assigned ATIN is not expired, Reject 01. If it is in the process of being assigned, Reject 02.
    b. Use CC ASIGNR, using Home key to move to proper location to access the application record.
    3. Application is for a different child and is not a duplicate of a previous submitted application, Enter CC ASIGNR with DLN and continue processing the current application.

    Note:

    Be aware of Twins or multiple adoptions.

    Caution:

    You must check for duplicate applications to avoid issuing more than one ATIN to the same child.

3.13.40.6.1  (01-01-2015)
Accepting Applications – Status Code "A"

  1. For applications that have been auto assigned, the Clerical Unit will write the ATIN above the title on Form W-7A. Do not work these applications. If there's a computer problem and it's in "A" status, but ATIN not auto-assign, assign the ATIN.

  2. Review names, address, the name of the child and date of birth fields on screen against the Form W-7A data only for accuracy. If incorrect, then correct all coding and transcription errors on these displayed fields, to ensure notices are generated to the correct address and the DM-1 file is updated with the correct date of birth.

  3. All data fields marked as invalid (*) MUST be corrected. If there is an error on a Primary Foreign Address, make sure the City, or City and Province are in the City field, the Country Code is in the State field, and the Postal Code is in the Zip Code field.

    If... Then...
    All invalid fields have been corrected and the application is now valid. 1. Input "A" in STAT field of ASIGN screen, and
    2. Enter any comments in Remarks field, and
    3. Move cursor to Line 24 of screen, and transmit.
    4. Notate ATIN above Title on Form W-7A.

3.13.40.6.2  (01-01-2015)
Suspending Applications – Status Code "S"

  1. Review names, address and date of birth fields on screen against the Form W-7A data only for accuracy. If incorrect, then correct all coding and transcription errors on these displayed fields only.

  2. Correct data fields marked as invalid (*), if possible. You must have Primary Name and address field correct to send a CP notice.

  3. When fields are invalid and cannot be corrected, then:

    1. Input "S" in "STAT-CD>" field, then

    2. Enter Suspense Reason Codes in "STAT-RSN-CD>" field, then

    3. Enter any necessary comments in Remarks field, then

    4. Move cursor to Line 24 of screen, and

    5. Transmit.

    Reminder:

    Taxpayer's receive one notice (effective 1/2011). However, the time allotted for the taxpayer to respond to the notice was extended from 45 days to 60 days.

  4. Line by line Suspense correction procedures:

    If... Then in STAT- RSN-CD Field, input...
    Line 3
    The adoptive child's name is missing/incomplete and cannot be determined
    01
    Line 4
    Date of Birth is missing and cannot be determined
    02
    Line 4
    Place of Birth is missing and cannot be determined
    03
    Line 5
    Name of Placement Agency is missing and cannot be determined
    05
    Line 5
    Address of Placement Agency is missing and cannot be determined
    06
    Line 5
    Date Child Was Placed is missing and cannot be determined
    07
    Signature is missing.
    If signed by someone other than the applicant, search for a POA attached or check CC CFINK.
    08
    Supporting Documentation is missing 09
    SSN Mismatch 10
    Supporting Documentation does not match entries on Form W-7A, or is incomplete 11
    "Foster Care/Adoption Agreement" (No Explanation why SSN cannot be secured from biological parent) 12

3.13.40.6.3  (01-01-2015)
Rejecting Applications – Status Code "R"

  1. When research indicates Form W-7A should be rejected, take the following steps:

    1. Input "R" in the "STAT-CD>" field and the appropriate reject reason code in the Reason Code (STAT-RSN-CD) field:

    If... Then in the "STAT-RSN-CD>" Field...
    1. ATIN assigned for the same child – Applicant already has a valid ATIN for the same child. ( H status) TE inputs 01
    Also, enter "DUP" in the Remarks field and on Form W-7A.
    2. "In Process" – The applicant sends in a duplicate application (same child - U status and you confirm the duplicate). TE inputs 02
    3. U.S. parents live overseas with foreign adopted child and do not plan to enter the U.S. with the child. Reject if no tax return is attached.
    If tax return is attached, route the package to the ITIN unit with a Buck Slip explaining the situation.
    TE inputs 04
    4. Extension Request Denied - no reply System generates 05

3.13.40.6.4  (01-01-2015)
Disposition of Blocks After Assignment, Suspension or Rejection

  1. Once a block is completed, the Tax Examiner will update the Processing Control Log with the completed time and date, number of cases Assigned, Suspended and Rejected in the block. Once an entire block has been either Assigned or Rejected, forward the block to Files.

  2. For Assigned Applications, write ATIN number above the title on Form W-7A.

  3. For Suspended Applications, all Forms W-7A will be suspended until the updated information is received, or the time expires and the case is rejected.

  4. For Rejected W-7A Applications that you have rejected up-front because, for example, the child is not a U.S. citizen, an application is in process, or it's a duplicate application, or a "Dummy" Form W-7A, keep the Form W-7A within the numbered batch. Use your local report to identify the suspended ones that will reject, due to "no reply" .

  5. For AUSPC Only– When a Form 1040 or Form 1040A tax return is attached and the application requires suspension, keep the return(s) with the Form W-7A until the application is either assigned or rejected. If assigned, edit the ATIN above the Form W-7A title and in the "Dependent's social security number" (Line 6c(2)) on the tax return next to the adoptive Child's name. For Refund returns only, edit "02 RPD" and the date the correspondence was received in the left margin to correct the condition to assign the ATIN. Detach the Form W-7A and route to Files. Forward the tax return to the pipeline area for processing. These will be kept in a separate suspense from the other Form W-7A applications. These returns will be immediately routed back to the pipeline as soon as there is resolution regarding the ATIN. You can keep the Form W-7A in the numbered block, in DLN order before routing the entire block to Files, but send the return back to the pipeline as soon as the ATIN is assigned or rejected.

3.13.40.7  (01-01-2015)
Correspondence/Suspense

  1. The types of correspondence are:

    1. ATIN Suspense Correspondence – Responses to the CP Notices, generally CP 562A.

    2. Notification of assignment of SSN. Some of the CP notices have a "stub" with an area for the applicant to fill-in the Child's SSN and return to us, once assigned. The ATIN unit will input the SSN to deactivate the account and remove from the DM-1.

    3. Unsolicited Correspondence – "White Mail" that requires action by the ATIN unit, or routing to the proper function.

    4. Requests for Extension of Time – This can be a letter attached to CP 561, CP 562C, or just a piece of "white mail" . See IRM 3.13.40.8, Request for Extension of the ATIN.

    5. Power of Attorney, Form 2848, Form 8821, Tax Information Authorization, or General POA attached. See IRM 3.13.40.4.4, Form 2848, Power of Attorney.

    If... Then...
    a. The Correspondence is in reference to Form W–7A application status Research CC ATINQ (using Primary/Secondary SSN) for application status and reply to correspondence, unless correspondence has already been issued that properly responded to the question,
    b. The Correspondence is a Reply to a suspense notice Input ASIGNR and follow instructions in IRM 3.13.40.6.1, Accepting Applications – Status Code "A" to correct and assign ATIN, or IRM 3.13.40.6.3, Rejecting Applications – Status Code "R" to Reject.
    c. The Correspondence is unrelated to ATIN If you do know the appropriate area, see work leader.
    d. Taxpayer notifies IRS of assignment of an SSN for the child and provides SSN for the adoptive child
    1. Use CC ASIGNR with the DLN or CC ASIGNT with the primary SSN to access the ATIN record. Overwrite the zeros in the child(s) SSN field with the SSN provided for the child to deactivate the ATIN and the DM-1 file.

    2. Research CC IMFOR for the presence of a TC 150 on the ATIN number. If present, send to Entity to merge the account. After Entity performs a merge (TC 040), monitor taxpayer's account until the TC 040 is complete.

    e. Taxpayer responds and informs us the Child has a SSN, but does not provide Child's SSN Input 999–99–9999 in ATIN field to deactivate ATIN.
  2. If a partial response is received to a suspense notice, attempt to phone the applicant.

    1. If unable to reach the applicant or you suspect that the applicant is not in the adoption process, reject the ATIN.

      Note:

      The notice tells them that they can submit another application.

    2. If the missing information is relatively easy to mail or fax, then attempt to contact the application by phone.

  3. Forward any response or correspondence to be associated with the file and update the database and/or remarks.

3.13.40.7.1  (01-01-2015)
Correspondence Suspense Time Frame

  1. For cases with status code "S" and any suspense Reason Code, a CP 562A notice will automatically generate giving the taxpayer 45 days to reply.

  2. If the case is in status "S" for 75 days continuously, the system will automatically generate a "R" in the STAT-CD field and a CP 563 (03) to notify the taxpayer that the application was rejected because of a "No Reply" to our requested information.

  3. Once an application is rejected, it cannot be updated. The rejection notice will instruct the taxpayer to reapply if an ATIN is still needed for their adoptive child.

3.13.40.7.2  (01-01-2015)
Processing ATIN Undeliverable Mail

  1. When ATIN mail is returned as undeliverable, research IDRS for a better, or last known address. See IRM 3.13.40.5.1, Command Codes (CCs), for research Command Codes. If a better address is found, update address on the ATIN database only and reissue notice.

    Note:

    Do not make an address change from the initial filing of Form W-7A application (TC 014). Form W-7A is not the authorized form to request an address update. The applicant must make a formal request in writing and sign it, or attach Form 8822, Change of Address . If one of these requests is attached and signed, use TC 014 to update, or route to Entity.

  2. Procedures for updating CD-NOT field:

    If... Then...
    CP 560 series Notice is returned enter "0" in NOT-CD field on screen.
    CP 561 Notice is returned enter "1" in NOT-CD field on screen.
    CP 562 series Notice is returned enter "2" in NOT-CD field on screen.
    CP 563 Notice is returned enter "3" in NOT-CD field on screen.

    Note:

    If a better address is found, then remove any undeliverable indicator after updating Adoptive Parent's Address field.

  3. If you cannot find a more recent address, notate "LKA-Undel" in the remarks field and destroy as classified waste.

3.13.40.7.3  (01-01-2015)
IRS Employee Contact With Applicants

  1. Background--Section 3705 of the IRS Restructuring and Reform Act of 1998, 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. Key points - All IRS employees, in the campus, headquarters, and area offices who communicate by telephone, correspondence, or face-to-face with taxpayers, or their personal representatives, on tax-related matters are required to provide (at a minimum) the following information:

    1. Telephone Contact: Their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their badge identification (ID Card) number.

    2. Face to Face: Their title (e.g., Mr., Mrs., Ms., Miss), provided as appropriate during the conversation, their last name and their badge identification (ID Card) number.

    3. Correspondence: All correspondence must include a telephone number where the taxpayer question(s) can be answered. In addition, manually generated and handwritten correspondence must have their title (e.g., Mr., Mrs., Ms., Miss), last name, and IDRS, letter system, or their badge identification (ID Card) 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 badge identification (ID Card) number must be used. Toll-free employees may also provide their location for identification purposes. E-mail and faxes to taxpayers on tax related matters, are considered manually-generated correspondence and must include the required information.

    5. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    6. When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    7. 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.

    8. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondex letter needs only an IRS telephone number and standard signature.

    9. Secretaries, receptionists or other people who answer the telephone in functional offices who need to identify themselves should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to provide tax or account information.

    10. It is not necessary to repeat the badge identification (ID Card) number 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 aforementioned number on the first contact.

  3. During a taxpayer contact, when-

    • It appears that there may be a hardship situation, or

    • The taxpayer asks to be referred to the Taxpayer Advocate Service (TAS), or the contact meets TAS criteria, and

    • You can't resolve the taxpayer's issue within 24 hours (this does NOT mean that you cannot assign the child's ATIN within 24 hours) then refer to TAS using instructions below.

  4. Prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order (ATAO)), to the Local Taxpayer Advocate. However, if you have taken steps within 24 hours to resolve the taxpayer's issue, do not transfer the case to TAS unless the taxpayer asks to be transferred. See IRM Part 13, Taxpayer Advocate Service, for more information.

    Note:

    Since AUSPC refers Form 1040 or Form 1040A with Form W-7A attached (or missing dependent TIN indicating "adopted" ) and the other centers suspend Form 1040 or Form 1040A in Rejects when there is an indication that a Form W-7A is "in process" , advise the applicant to file their return. If the taxpayer is concerned about filing a delinquent return or does not want to wait, explain the time frame for assigning an ATIN. Advise the taxpayer they can proceed and file without an ATIN on their return. The taxpayer should annotate, "ATIN applied for" in the "Dependent's social security number" area of the return.

3.13.40.7.4  (01-01-2015)
Disclosure Guidelines

  1. IRC 6103 establishes the taxpayers (T/Ps) right to privacy of tax information. Ensure you provide the correct information to the correct T/P or authorized representative (check CC CFINK to research for a POA).

  2. IRC 7213, IRC 7213A, and IRC 7431 provide criminal penalties and civil remedies to ensure that T/P's returns and return information remain confidential.

  3. For more information on General Disclosure Guidelines refer to IRM 21.1.3, Operational Guidelines Overview and for full discussions refer to IRM 11.3.1, Introduction to Disclosure through IRM 11.3.40, Disclosures Involving Trust Fund Recovery Penalty Assessments.

  4. For information on Submission Processing Policy on the use of FAX and Signature Stamps refer to IRM 21.3.4.12.8, Use of FAX for Taxpayer Submissions.

3.13.40.7.5  (01-01-2015)
Telephone Oral Testimony

  1. Determine the legitimacy of the phone response by asking questions pertaining to information provided on the original application:

    • Name

    • Address

    • Social Security Number (SSN)

    • Date of Birth

    Caution:

    Do not accept oral testimony for missing Signatures or Documentation verifying the status of the adoption proceedings.
    You can accept the Child's Name and Date of Birth via telephone, and any other data that is an entry on the Form, if the taxpayer wishes to provide the missing or erroneous information.

  2. Once you have verified that the taxpayer is responsible for the missing information, update/correct the missing information on the ASIGN screen. Update the application status on the screen print and input "Oral Testimony" in the remarks field.

3.13.40.7.5.1  (01-01-2015)
Applicant Questions Regarding Filing Form W-7 for ITIN

  1. If we have rejected a Form W-7A application based on the citizenship of a foreign born child and their tax return and Form W-7A application were referred to the TIN function, see IRM 3.13.40.4.6, Rejecting Forms W-7A, to provide the applicant with a clear explanation.

  2. If the taxpayer has additional questions about their account, transfer the call to 1-800-829-1040. International customers should call 1-267-941-1000 (not a toll-free number) or contact an IRS overseas office in Frankfurt, London, or Paris for additional help.

    Figure 3.13.40-4

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.13.40.8  (01-01-2015)
Request for Extension of the ATIN

  1. This section of the Internal Revenue Manual (IRM) provides instruction for processing requests for extension of the assigned ATIN.

  2. The IRS can approve an ATIN extension when the applicant meets "reasonable cause" . This means that the applicant provides an explanation of their adoption status and explains why they have been unable to secure a SSN for the adoptive child. A simple statement such as, "I need an extension" received without an explanation, requires suspending the case until the applicant provides additional information. Upon receipt of the taxpayer's reply, you must accept or reject their request.

  3. Extension requests are received through various methods:

    1. Response to CP 561 or CP 562C.

    2. White Mail received prior to the end of the two-year time frame.

    3. White Mail received after the ATIN has expired.

    4. Receipt of a request after ATIN has expired. This type of extension requires the taxpayer to reapply for a new ATIN.

3.13.40.8.1  (01-01-2015)
Processing Extension Requests

  1. Review the taxpayer letter, CP 561 or CP 562C for an assigned SSN. If the applicant still needs an Extension, then use the chart to determine whether to Assign or Reject their extension status (EXT-STAT).

    If... Then...
    Filer provides an explanation that contains a "reasonable cause" Input "A" in the EXT-STAT field – generates CP 560B (Extension Granted)

    Exception:

    "A" cannot be input for an expired ATIN.

    Filer gives no explanation, or a limited version
    and we send a 562C letter for additional information
    Input "R" in the EXT-STAT field with NO Status Reason Code – generates CP 562C.
    Filer replies to the CP 562C Notice but the reply does not contain a valid reason Input "R" in the EXT-STAT field and STAT-RSN-CD 05 – generates CP 563 (Extension Denied)

3.13.40.8.2  (01-01-2015)
ATIN Extension Status – EXT-STAT

  1. There are three valid extension codes for ATIN application record, "A" , "R" , and "E" . Extension status "E" is automatically generated by the system.

    EXT-STAT Input by: Reason Comments
    A TE Acceptable Reason given on correspondence Generates CP 560B (Extension Granted)
    System will actually extend the assigned ATIN for one additional year.
    R TE No reason given – want to give another chance EXT-STAT-CD "R" with NO Status Reason Code – CP 562C (Missing Reason for Extension Request)
    R TE Not an acceptable reason for granting Extension EXT-STAT "R" and STAT-RSN-CD 05- CP 563 (Extension Denied)
    R Generated EXT- STAT "S" for 75 consecutive days Generates CP 563, para 03
    (Extension Denied)
    A Generated EXT-STAT "A" for 21 months CP 561, para 02
    (Will Soon Expire)
    E Generated No Reply to CP 561 generated (see above) CP 561, para 03
    (Expired)
    E Generated EXT-STAT "A" for 2 years and 3 months after EX-DT CP 561, para 03
    (Expired)
    Will stay on the ATIN database- always be able to see on CC ATINQ (using Primary/Secondary SSN).
  2. A "Final" notification of expiration, CP 561(03) generates to the taxpayer, but the system automatically allows the ATIN to stay active for 3 additional months.

Exhibit 3.13.40-1 
Form W-7A, Application for Adoption Tax Identification Number (ATIN)

This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.13.40-2 
Country Codes

This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.

More Internal Revenue Manual