3.14.1  IMF Notice Review

Manual Transmittal

November 07, 2014


(1) This transmits revised IRM 3.14.1 Notice Review - IMF.

Material Changes

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

(2) IRM Replaced “is comprised of several components to” with “will” and removed “with several transition states.”

(3) IRM Removed paragraph (5)

(4) IRM Undeliverable Mail reference as been changed

(5) IRM Added reference to IRM Erroneous Refunds

(6) IRM Updated valid zip codes for SP sites

(7) IRM In Key 750, removed duplicate language, “Part or all of your EIC not allowed”

(8) IRM In subparagraph (a), (b), and (d), changed “selectable” to “selected”

(9) IRM In chart, changed “SC” to “Service Center”

(10) IRM Inserted “Reporting Agents Files” to explain RAF

(11) IRM Inserted sentence, “If the return is unavailable, use IDRS, Control-D, and other available tools to verify the accuracy of notice data.”

(12) IRM Insertions at 1st, 3rd, 4th, and 6th bullet.

(13) IRM Tax examiner can only receive one count per case

(14) IRM Added example of Entity change in chart.

(15) IRM Changed language in 4th box from “incorrect” to “inconsistent” and removed “Even though the Post Office can deliver by street name alone in most cases

(16) IRM Updated paragraph selections for 12C Letter

(17) IRM change 06501 to 14876

(18) IRM – Remove local procedures for Out of Area Lockbox. This should reference

(19) IRM Added “Request for IDRS Generated Refund”

(20) IRM (6) Form 5792 and CC RFUNDR - Remove job aid under #1, remove local procedures under #6

(21) IRM Added “If necessary, adjust to Taxpayer intent.”

(22) IRM (1) Category A ERRF Resolution - Remove Local Procedures

(23) IRM language, “Recharge paper returns to Exam using CC ESTABD”

(24) IRM Change Form 3465 to Form 12356

(25) IRM Category D ERRF Resolution - Remove Local Procedures

(26) IRM Added reference to IRM

(27) IRM Taxpayer Correspondence blocks 1, 5, 11 - Remove Local Procedures

(28) IRM Change CP 24 to notice

(29) IRM Change (5) second bullet to 14876

(30) IRM Removed “or –R”. Changed 14876 to 148xx. Changed “Void Notice” to “Void CP 24”

(31) IRM change 06501 to 14876

(32) IRM Inserted new section: “Funny Box IVO (Integrity and Verification Operation) – RICS”

(33) IRM thru Renumbered

(34) IRM Replaced “in” with “using”

(35) IRM Replaced “-“ with “and other”. Corrected IRM references.

(36) IRM Removed (f) and added “to the appropriate status” at the end of 2nd bullet under (d).

(37) IRM STEX Freeze (–B): Revised language with new processing procedures.

(38) IRM Added to Key 60, “More than two years prior to current tax year.”

(39) IRM Updated note

(40) IRM to note in box “1099-R if any federal income tax was withheld.”

(41) IRM Added standard deduction figures for 2014, removed figures for 2004

(42) IRM Added language to 4th bullet, “(except 2010, 2011, 2012)”. Added exemption figures for 2014, removed figures for 2004. IRM Made changes to the Note

(43) IRM Made changes to (c) and (d)

(44) IRM In (6)(c), replaced the following sentence: “If EIC with a child is disallowed because the child does not meet qualifications

(45) IRM Inserted new (6)(d), “If EIC is disallowed because some but not all children claimed on Schedule EIC do not qualify, recompute EIC for any remaining qualified children claimed on Schedule EIC.”

(46) IRM (6)(e) thru (6)(j). Removed the “Note” with the following language below (7), “If a child or children claimed on schedule EIC do not qualify, do not compute the Earned Income Credit for either the disqualified children or for the primary/secondary taxpayers, even if Earned Income meets criteria.”.

(47) IRM Added tolerance amount in chart in (3), “if SE income is below $10.000.” Added language in (4), “If routing is not appropriate or”. Changed multiplier from .133 to .153.

(48) IRM Added note to TPNC 291.

(49) IRM Added note “Taxpayer must complete part 1 of for each dependent who has an ITIN and for whom they are claiming the child tax credit.”

(50) IRM Added note “Taxpayer must complete part 1 of for each dependent who has an ITIN and for whom they are claiming the additional child tax credit.”

(51) IRM Added sentence to “Note,” “If the taxpayer claims both the Tuition and Fees Deduction from Form 8917 and an Education Credit from Form 8863, allow only the Tuition and Fees Deduction.”

(52) IRM Remove Note after (3) and remove reference to Job Aid

(53) IRM Added “American Opportunity Credit”

(54) IRM Changed “Caution” to “Note” with revised language and added IRM Reference Removed table below “Caution”.

(55) IRM chapter renumbered

(56) IRM Changed “Reminder” to “Note” with revised language and added IRM reference. Removed table below “Reminder”

(57) IRM Make changes to the If then box for reviewing Estimated Tax

(58) IRM Removed reference to IRM

(59) IRM If the voucher was received prior to Aug. 2004 request through files

(60) IRM Partially renumbered. Removed (3) and re-inserted as (2b) with revised language

(61) IRM Remove —R from the first bullet

(62) IRM Changed table: added boxes and sub-divided boxes

(63) IRM Replaced “migrated to,” and ”system and the inventory is no longer in OLNR” with “inventory is accessed through”.

(64) IRM Add unreversed to last bullet in Refund S box

(65) IRM Changed IRM Reference in chart

(66) IRM Removed “Doc Code 18 with Designated Payment Indicator 05”

(67) IRM Removed “Doc Code 18 with Designated Payment Indicator 05”

(68) IRM Inserted the following language into (5)(c): “The refunding amount is a TC 670 payment submitted with an Extension of Time to File (TC 460). If the amount is not reasonable or if the extension posted after the return, verify the extension.” renumbered subparagraph 5.

(69) IRM Added “AIMS Indicator (TXMOD)”

(70) IRM Replaced (5)(b) with (4)(c) and renumbered subparagraph 5. Inserted “Caution: Check INOLES for Debtor Master File (DMF) indicator before initiating credit elect.”

(71) IRM Replaced (5)(c) with (4)(d) and renumbered subparagraph 5. Inserted “Caution: Check INOLES for Debtor Master File (DMF) indicator before initiating credit elect.”

(72) IRM Inserted new (5)(b) with the following language: “If there is an unpostable transaction on the account that is a TC150, print the notice with no changes.” Renumbered section.

(73) IRM Added reference to IRM and the following language: “If the case does not meet Category A Erroneous Refund criteria: Use Hold Code “0” on the adjustment. Insert Label 1 on the notice in the current cycle.”

(74) IRM Replaced all language with new language and reordered paragraphs.

(75) IRM Removed “and Priority Refund Transcripts”

(76) IRM Removed hurricane Katrina tridoc

(77) IRM Changed second “Note” to “Exception” and relocated below (2)(a). Inserted first “Note” as letter into (2) and reordered

(78) IRM Replaced “use the chart in” with “see” in “Exception”

(79) IRM Added (c), “Print the notice with no changes.”

(80) IRM Removed “Note” below (d)

(81) IRM language in chart, “if any corrective action is needed. See IRM”

(82) IRM Inserted “Note” after (1), “Taxpayers must have a valid SSN to claim the Making Work Pay credit. If Married Filing Jointly, at least one spouse must have a valid SSN.”

(83) IRM Remove reference to CC FTPIN

(84) IRM Added language, “from the Return Due Date (RDD) or Extended Due Date (EDD) to the 23C date. “

(85) IRM Added XX to YYYY

(86) IRM Route case to Receipt & Control for processing

(87) IRM Delete use of Form 8453 and add Note: Print entire MEF return

(88) IRM Added “return” in the box

(89) IRM Change closing codes in 12,12b and 12c to three digits

(90) IRM Changed IRM reference from to

(91) IRM & (5) Added “2014”

(92) IRM Updated figures from $51,000 to $52,000

(93) IRM Removed reference to IRM

(94) IRM ChangedRevised language in “If…and…then” table, second box: added “on day 3”; replaced “Friday – Wednesday (10 pm eastern Thursday) with “9 pm eastern time Friday – Wednesday (10 pm eastern time Thursday)”; removed “to request IMF to reverse the refund and prevent the refund information from going to FMS.”

(95) IRM Updated title of IRM reference to Processing Timeliness Criteria

(96) IRM Removed language, “transfer the case and”

(97) IRM Inserted “appropriate”

(98) IRM “Input STAUPS as necessary.”

(99) IRM “Note” from bottom of section to below “Caution”

(100) IRM Blocking Series - Remove Local Procedures

(101) IRM Notice Disposition - Remove Local Procedures

(102) IRM In 1st Bullet, replaced “increases” with “changes”. In 4th Bullet, added “or added.”

(103) IRM title of reference to IRM to Verifying and Correcting Name Information.

(104) IRM Replaced “Do not use a hold code” with “Use a hold code “0”.”

Effect on Other Documents

IRM 3.14.1, dated October 19, 2012 (effective January 1, 2013), is superseded. The following IRM Procedural Updates (IPUs) have been incorporated into this IRM: 13U0803 (issued 04-24-2013) and 13U1273 (issued 07-25-2013).


Individual Master File (IMF) Submission Processing Campuses and Notice Review tax examiners

Effective Date


Related Resources

Document 6209, IRS Processing Codes and Information

IRM 3.11.3, Individual Income Tax Returns, for instructions related to Code and Edit

IRM 3.12.3, Individual Income Tax Returns, for instructions related to Error Resolution System

IRM 21.4.4, Manual Refunds

IRM 21.4.5, Erroneous Refunds

IRM 21.4.6, Refund Offset

IRM 20.1, Penalty Handbook

IRM 20.2, Interest

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division  (01-01-2015)
Notice Review Overview

  1. This section provides instructions to the Notice Review Function for reviewing Individual Master File (IMF), Individual Retirement Account (IRA), and Integrated Data Retrieval System (IDRS) Computer Paragraph (CP) notices. These notices may be selected for review by either the Notice Review Processing System (NRPS) or by the IDRS Review Notice Register.


    Notices may also be mandated for review by Treasury Inspector General for Tax Administration (TIGTA), management, policy statements, etc.

  2. Priority Refund Transcripts are worked using the Account Management Services (AMS) system and are delivered on a daily basis. This section also provides instructions to the Notice Review Function for reviewing Priority Refund Transcripts meeting criteria identified by IMF using AMS. Priority Refund Transcripts are:

    • Million $10

    • Million $

    • Refund-S

    • Refund-E

    • Refund (Other)


    The CP Notice inventory is found in the OLNR system.

  3. This section also provides Submission Processing Campus personnel with exhibits of selected Master File and Submission Processing Campus generated notices. The exhibits contain:

    1. A description of the notices with the issuance conditions.

    2. A list of notices (not included in this IRM) with the purpose and issuance conditions.


    Notices are subject to change for various reasons, including notice clarity studies and legislative changes.

  4. Reviews are conducted with the goal of improving both the accuracy and quality of information sent to taxpayers.

  5. The Notice Review process helps to ensure that:

    • Information taxpayers receive is complete and correct.

    • Taxpayers do not receive an erroneous refund.

  6. For an overview of the process, review the Notice Review Process Flowchart. See Exhibit 3.14.1-1.

  7. Notice Review will reduce taxpayer inquiries (adjustment cases and phone calls) by pursuing:

    • Quality

    • Notice Timeliness

    • Interest Reduction

    • Effectiveness

    • Completeness  (01-01-2015)
Customer Account Data Engine 2 (CADE 2)

  1. The Customer Account Data Engine (CADE) 2 solutionwill modernize the IRS to a daily processing environment .

  2. The components of CADE 2 Transition State 1 in January 2012 include:

    New Cycles Refund Issuance Notice Issuance
    1. Campus Cycle –Thursday – Wednesday

    2. Master File Processing – Friday - Thursday

    3. Notice Review – Saturday - Monday (8 days later, 2 am eastern)

    4. Unpostables – Tuesday to Tuesday

    Refunds for IMF accounts will be accelerated to provide refunds to taxpayers more quickly.
    1. Direct deposit refunds will be issued in 4 business days from posting.

    2. Paper check refunds will be issued in 6 business days from posting.

    IMF notices under a $1000 tolerance (change in refund amount) will bypass Notice Review Processing System (NRPS) and will be sent directly to Correspondence Processing System (CPS), to be mailed to the taxpayer.


    If the remaining refund amount is less than ≡ ≡ ≡ , the refund hold will not be applied.

    1. Daily Processing – IMF processing with the new cycle definition outlined in (3) a), but processing daily (daily transactions to daily accounts) with weekly processing occurring on Thursday.


      Business Master File (BMF) and Employee Plans Master File (EPMF) will continue to process all transactions on a weekly basis. Master File processing will occur on Thursdays

      IMF will identify unpostable criteria daily, but the files will not be processed by Generalized Unpostable Framework (GUF) until the weekly cycle. This may result in subsequent transactions posting in the same cycle resolving the unpostable criteria for the earlier transaction marked as unpostable.

    2. CADE 2 database – Establishment of a taxpayer account database that will house all individual taxpayer accounts. IMF will process all transactions and settle accounts and will provide data to the CADE 2 database. IMF will remain the system of record for Transition State 1. Key programs IDRS and Integrated Production Model (IPM) will receive data from the CADE 2 database.

  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 displayed using Corporate File On-line (CFOL) command codes (IMFOL) the second day after campus input. Transactions will be displayed on IDRS command codes (i.e., TXMOD, ENMOD) the third day after campus input.

    2. Weekly transactions directed to a daily account are expected to post with the master file weekly processing 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.


      For items b) and c) above, transactions will be displayed using CFOL command codes (IMFOL/BMFOL) on the Saturday following the Thursday master file processing. Transactions will be displayed on IDRS command codes (i.e., TXMOD, ENMOD) Monday following the Thursday master file processing.

    4. Use of the posting delay code on transactions will result in the transaction being held until the weekly processing on Thursday. When the transaction is processed on Thursday and the posting delay code contains a value other than zero, the transaction will continue to resequence for the number of cycles equal to the value.


      A transaction input with a posting delay code of 1 will be processed on Thursday, and will resequence until the following weekly processing day (the following Thursday).


      Use of the posting delay code on a daily account with daily transactions may result in delaying the posting of the transactions that would resolve the account.

  4. When an action is taken to increase or decrease an overpayment, and the action is being taken before 6 pm local time on Monday:

    1. Input adjustment

    2. Retype or void the notice

  5. When an action is taken to decrease the overpayment, and the action is being taken after 6 pm local time on Monday and before 6 pm local time on Wednesday:

    1. Input transaction code (TC) 570

    2. Input your adjustment with the appropriate blocking series, hold code, and posting delay code

    3. Retype or void the notice

  6. When an action is taken to decrease the overpayment, and the action is being taken after 6 pm local time on Wednesday and before 10 pm Eastern time on Thursday:

    1. Input NOREFP

    2. Input your adjustment with the appropriate blocking series, hold code, and posting delay code

    3. Retype the notice

  7. When an action is taken to increase an overpayment, and the action is being taken after 6 pm local time on Monday:

    1. Input adjustment

    2. Label the notice

  8. CFOL Command Code IMFOL will contain an indicator on the screen to identify whether the account is a Daily account or a Weekly account.

  9. For Notice Review, when CC NOREFP is initiated, the following chart explains when the TC 846 and systemic TC 841 will be displayed:

    Daily Account TC 846/841 Posting Chart
    Transaction Code CFOL Command Codes IDRS Command Codes
    846 Next business day Second business day
    841 Two business days Third business day
    Weekly Account TC 846/841 Posting Chart
    Transaction Code CFOL Command Codes IDRS Command Codes
    846 Saturday after freeze releases Monday after freeze releases
    841 Second Saturday after freeze releases Second Monday after freeze releases  (01-01-2015)

  1. Notice Accuracy is a part of Balanced Measures, therefore it is critical and necessary to provide appropriate feedback to all functions generating erroneous notices or refunds.

  2. Notice Review will develop a local method for providing feedback to the responsible function.


    Provide this feedback weekly during the filing season.

  3. Management must ensure that adequate reviews are performed during the employee's on-duty status. AMS will provide the ability for on-line quality review of the Priority Refund Transcripts. Management must input the sample size or percentage in each employee's profile in AMS to ensure a sample of transcripts are included in the Quality rating.

  4. Management must allow time for tax examiners to provide feedback information.

  5. The tax examiner must identify to the lead those situations where an error trend can be established (e.g., same/similar error being committed repeatedly by the same function and/or tax examiner).

  6. The lead will provide this information weekly to the Planning and Analysis analyst responsible for Notice Review.

  7. Use the NRPS Notice Disposition Reports and AMS reports as a feedback tool. There are two basic formats for these reports:

    1. The CP Format provides a breakdown of each notice by selection key for a given cycle.

    2. The Key Total Format provides a breakdown of each selection key by CP number for a given cycle.

  8. Cumulative history reports show year-to-date totals for the above reports. Although the weekly reports show data only for those keys with current cycle activity, the history reports show data for keys that have had activity at any time during the year.

  9. Use historical records to assist in feedback sessions for functions that frequently generate bad notices.  (01-01-2015)
Notice Timeliness

  1. Correct and disposition notices timely to minimize negative impact to the taxpayer. For Notice Review, timely means all of the following:

    1. Closeout the notice cycle on or before the end of the Notice Review cycle.


      Notice Review cycle is available beginning on Saturday evenings and closes at 2 am Eastern time on the second Monday following the Saturday availability (eight days).

    2. Complete all refunding CPs 12 and 24 before 10 pm Eastern time Thursday.

    3. Input adjustment actions on all other cases by the notice 23C date.

  2. Notice Review should schedule and staff personnel to work 100 percent of the notices selected for review.

  3. Notice Review timeliness will be considered met if 95 percent of the sample is completed by the 2 am Eastern time Monday morning cycle cutoff.


    Notice Review will always review and correct 100 percent of the Key 100s.

  4. Whenever a site determines that 95 percent of the sample cannot be completed timely, they will contact the Headquarters Notice Review analyst.

  5. When a decision is made to extend a cycle, an information alert should be issued to notify the appropriate computing center of the new date and time for the cycle closeout.  (01-01-2015)
Interest Reduction

  1. Make every reasonable attempt to reduce the amount of interest IRS pays on refunds.

    1. IRS has a 45 day interest-free period (from the later of the due date, filing date, or the date the return was filed in processible form) in which to process taxpayer refunds. By law, refunds not issued within that 45 day period must include credit interest.

    2. Review AND correct the account without paying unnecessary interest.

  2. Review, correct, and disposition all notices timely to give the taxpayer the full amount of time to pay. A taxpayer has only 21 calendar days from the date of the notice (ten work days for notice amounts of $100,000 or more) to pay without incurring interest for periods after the date of the notice.

  3. Refer to IRM 20.2, Interest, for proper guidance when reducing, computing, or discussing interest.  (01-01-2015)

  1. Reviewing Math Error notices that have historically high error rates is a top priority. Reviewing notices that are usually correct is counterproductive and costly.

  2. For assistance in adjusting the percentage of Math Error notices selected by NRPS, review IRM NRPS Local Control File.  (01-01-2015)

  1. Review ALL modules and the tax return, if available, as required per Selection Key criteria related to a notice or transcript selected for review. Modules to review include:

    • Entity Module

    • Outstanding Credit Balance Modules

    • Cross-reference Taxpayer Identification Number (TIN)s

    • Related Names

    • Freeze Conditions/Codes

  2. This list is by no means all-inclusive. See IRM,General Review Procedures.

  3. It is the function of Notice Review to timely verify the accuracy of all selected and reviewed CP Notices. The product, a CP Notice mailed to the taxpayer, must state accurately and clearly the changes made and the status of the taxpayer's account.  (01-01-2015)
Quality Review Research

  1. There is certain information, generic to all returns, that must be verified. Compare the return to the Computer Paragraph (CP) notice and the information contained in the Notice Review Processing System (NRPS) Package/Control D to ensure that the information for each tax period is processed correctly.

  2. Use the IDRS Command Codes Job Aid for assistance (e.g. Command Codes (CC) AMDIS, ENMOD, IMFOL, INOLE, INTST, RTVUE, NAMES), which is available on Servicewide Electronic Research Program (SERP).  (01-01-2015)
IRM References

  1. This section lists the IRM references that relate to the Notice Review Function. Functional handbooks contain specific instructions for processing and resolving issues that appear on a given notice.

  2. To ensure a comprehensive review, tax examiners must be aware of these procedures. They are not to be used to reflect errors against the individual employees, but as a means of providing feedback to the functions causing errors or not following procedures. The references are:

    Procedures for See This IRM's Reference (if any)
    Accounting Refund Transactions IRM 3.17.79 No specific reference
    Adjustment Guidelines IRM 21.5.2 IRM for Entity Adjustments, or IRM for Tax Adjustments
    Automated Non-Master File Accounting IRM 3.17.46 No specific reference
    Business Tax Returns and Non-Master File Accounts IRM 21.7 No specific reference
    Credit Transfers IRM 21.5.8 IRM
    Erroneous Refunds IRM 21.4.5 IRM
    Excess Collections File IRM 3.17.220 IRM
    Files Management/Service IRM 3.5.61 No specific reference
    General Adjustments IRM 21.5.1 IRM for Entity Adjustments, or IRM for Tax Adjustments
    IDRS Command Codes IRM 2.3 and IRM 2.4 No specific reference
    IMF Account Numbers IRM 3.13.5 IRM
    Incoming & Outgoing Correspondence/Letters IRM 21.3.3 IRM
    Individual Tax Returns IRM 21.6 No specific reference
    Individual Income Tax Returns (Code & Edit) IRM 3.11.3 No specific reference
    Individual Income Tax Returns (Error Resolution System - ERS) IRM 3.12.3 No specific reference
    IRS e-file of Individual Income Tax Returns IRM 3.42.5 IRM Reprocessing Returns only
    Manual Refunds IRM 21.4.4 IRM
    Media Transport and Control IRM 3.13.62 No specific reference
    Operational Guidelines Overview IRM 21.1.3 IRM for Notice Review Overview only
    Processing Timeliness: Cycles, Criteria, and Critical Dates IRM 3.30.123 IRM
    Restricted Interest IRM 20.2.8 IRM
    Undeliverables (Mail Receiving and Sorting Operations) IRM3.13.62–55 IRM
    Unpostables (General) and Unpostables Resolution IRM 3.12.32 and IRM 3.12.179 IRM
  3. Submission Processing Campus officials and Managers must communicate security standards to their employees and establish methods for enforcement. Refer to IRM 10.4.1, Managers Security Handbook, for more information.

  4. Employees are responsible for taking the required precautions to provide security for documents, information, and property handled while performing official duties.  (01-01-2015)
CP Notices

  1. This section contains information relating to Individual Master File (IMF) and Individual Retirement Account (IRA) notices. It includes a description of the notices and information on the data elements.

  2. Computer Paragraph (CP) Notices are the most common form of communication with the taxpayer regarding their account. A CP Notice generates to notify the taxpayer of any change to a specific tax module from the taxpayer’s original return, or in response to taxpayer correspondence. A notice must have accurate and timely information.

  3. A CP Notice is a computer generated message resulting from:

    • An entry of Taxpayer Notice Codes (TPNCs) for a return

    • A Master File analysis of a taxpayer's account

    • Certain transactions posting to an account

  4. Notices generate to:

    • Request information or a payment from a taxpayer

    • Inform or educate a taxpayer

    • Clarify an issue for the taxpayer

  5. The taxpayer must receive a notice (unless otherwise specified in IRM 3.14.1 IMF Notice Review) when there is:

    • A debit balance on the module

    • A math error on the return

    • An Estimated Tax (ES) payment discrepancy

    • Penalty and interest assessed on the module

    • A subsequent change to the taxpayer’s original figures for tax, credits, penalties or net operating loss

    • A Taxpayer Offset Program (TOP) offset or an overpayment offset to another module (issued by Financial Management Service [FMS])

    • A reduced credit elect

  6. Each CP Notice contains the following basic information:

    • Taxpayer’s name

    • Address

    • Taxpayer Identification Number (TIN)


      The TIN may be in full form or truncated on the notice.

    • A computer generated message

  7. The Notice Elements describe the conditions which characterize a notice. The principal elements are:

    • Overpayment

    • Balance due

    • Even balance

    • Estimated Tax discrepancy

    • Non-Compute

    • Math Error

    • Adjustment of tax, credits, Failure to File (FTF TC 166) penalty, or Estimated Tax (ES TC 176) penalty

    • A reduced credit elect

    • Offset to other modules or accounts

  8. Overpayment CP Notices 12 and 24 will have a systemically imposed refund hold to allow time for Notice Review to correct erroneous notices before the refund transaction generates. This results in the ability to input an adjustment, credit transfer, or required transaction to correct the notice and associated refund amount prior to the refund being issued to the taxpayer.


    The systemic refund hold mentioned on the above notices will apply to direct deposit refunds also.

    1. The taxpayer account reflects a TC 570 with blocking series "55555" .

    2. The systemic hold expires Thursday of the Notice Review cycle. Master File generates the refund transaction (TC 846) during the IMF weekly processing on Thursday evening.

    3. TC 570 can be input to prevent the refund transaction from generating up through 6 pm local time on Wednesday.

    4. NOREFP can be input from 6 pm local time Wednesday through 10 pm eastern time Thursday to request IMF to reverse the systemically generated refund transaction (TC 846) before the refund information is transmitted to Financial Management Services (FMS).

    5. IMF generates the TC 841 reflecting the reversal of the TC 846 when the NOREFP is processed with the IMF weekly processing on Thursday.

  9. Other overpaid notices in OLNR inventory (for example, CP 10, CP 16, CP 21, CP 30A, and CP 51B) do not have a refund hold applied for refunds less than $100,000. A TC 846 is present on these accounts and cannot be intercepted. If these notices are identified as erroneous, follow erroneous refund procedures. See IRM Refund.  (01-01-2015)
Notice Types and Definitions

  1. Settlement Notices inform the taxpayer of payments due, interest and/or penalties due, math errors, or adjustments made to the taxpayer’s account. There are three types of settlement notices:

    1. Math Error Notices generate when a tax return containing a math error posts to the Master File. The Error Resolution System (ERS) normally identifies and assigns the math errors during pipeline processing. The tax module may include math, clerical, or credit related errors.

    2. Non-Math Error Notices generate when a return with no math error posts to the Master File. The tax module may include tax, credits, penalties, interest, or a combination of all four.

    3. Adjustment Notices generate when certain types of Data Processing (DP) or Examination adjustments post to an account.

  2. Information (Associated) Notices generate when information needs to be sent to the taxpayer. The information can cover many areas, such as Earned Income Credit (EIC), credit elects, offsets of money to other balance due tax modules, or information about the taxpayer’s TIN.

  3. IDRS Notices typically generate five cycles after a settlement notice if the account remains in balance due status. These notices are sometimes referred to as Collection or Tax Delinquent Account (TDA) Notices.

  4. Submission Processing Campus Notices generate to notify the Submission Processing Campus or Area Office of a condition that needs further action to bring the taxpayer’s Master File account into current status. This category includes Refunds, Refund E, and Refund S Transcripts, CP 36, etc.


    See Exhibits 3.14.1-8 through Exhibit 3.14.1-8-25 on CP Notices which include images of most of the settlement, information, and IDRS notices. For description of all notices, see Document 6209, IRS Processing Codes and Information, Section 9. Additional notice images can be viewed from the Office of Taxpayer Correspondence: http://gatekeeper.web.irs.gov/snipmain.aspx. The web site can also be accessed through Servicewide Electronic Research Program (SERP).  (01-01-2015)
Data Elements — IMF and IRA Notice List

  1. Each posting cycle, the Notice Review Processing System (NRPS) generates the IMF and IRA Notice Lists. These lists contain information on all notices (except CP 36A, CP 38A, and CP 56) generated from that Submission Processing Campus. These lists are tools for reviewing notice output, requesting tax returns, and controlling notices.

  2. The IMF Notice List shows CP information grouped by inquiry campus, then by CP number in social security number (SSN) order. Refer to the figure below for a description of the Notice List Data Elements. Figure 3.14.1-1.

    Figure 3.14.1-1
    This image is too large to be displayed in the current screen. Please click the link to view the image.
    These Elements Appear on Each Page of the IMF Notice List
    Item 1 File Page Number
    Item 2 Current Date
    Item 3 File Title IMF NOTICE/AUDIT LIST
    Item 4 Submission Processing Campus Name
    Item 5 Page Number
    Item 6 Output File Number
    • NRP4510 for Pass A and D notices

    • NRP6610 for Pass B and C notices

    Item 7 CP Notice Number
    Item 8 Notice Count
    Item 9 Current Cycle
    These Elements Print for Each CP Notice
    Item 10 Social Security Number (SSN) Invalid SSNs have a preceding "1" (e.g., 1-234-56-7890)
    Item 11 Tax Period Field is blank for CP 37
    Item 12 Document Locator Number (DLN)
    • Adjustment DLN for CP 21, CP 22, CP 721, and CP 722

    • Control DLN for all other CPs

    Item 13 Notice Amount or First Notice Document Location Number (DLN) CP# and What Prints for it
    • CP 17 — Net Refund Amount

    • CP 36, CP 36A, CP 36D, CP 36S — First notice DLN

    • CP 39 — Balance after offset

    • CP 42, CP 44, CP 49, CP 749 — Total overpayment amount

    • CP 45 — Amount credited to the account

    • CP 52 — Self-Employment (SE) earnings

    • CP 60 — Corrected balance due

    • All other CPs — Total balance due


    All credit amounts in this field print with a trailing "-" . Zero amounts do not print

    Item 14 NRPS Primary Selection Key, Manual Intervention Codes, Sub-Agency Codes, or blank
    • M = Math Error (TPNC) 100

    • C = Centralized Authorization File (CAF) Mismatch

    • B = Blind Trust

    • S = Submission Processing Campus Address

    • Sub-Agency Codes print as "SAG: nn" where "nn" is a two-digit Sub-Agency Number (See IRS Processing Codes and Information [Document 6209]

    Item 15 Notice Sequence Number This is a six-digit number preceded by a letter that indicates the Run (or Pass) number (A, B, C, or D).
  3. IRA Notices also appear on the IMF Notice List.

  4. The Notice List prints in the same sequence as the corresponding notices. A notice sequence number prints for each Notice List line item and provides an easily referenced number for each notice. The Notice List provides a total count of notices issued.  (01-01-2015)
The Notice Review Processing System (NRPS)

  1. NRPS selects Settlement Notices and Adjustment Notices for review by analyzing data from the following sources:

    1. CP Notice Records — NRPS uses this information to print a one page overview "Quick Print" of the selected notice for the review.

    2. Entity and Tax Modules — NRPS uses the Transcript Request System (TRS) to obtain data. Enterprise Computing Center - Martinsburg (ECC-MTB) and Enterprise Computing Center - Memphis (ECC-MEM) send this information to each Submission Processing Campus exclusively for NRPS processing. NRPS prints this information in transcript format as part of the NRPS Package/Control D. Refer to the On-Line NRPS Tax Module Transcript exhibit. See Exhibit 3.14.1-26.

    3. Return Transaction File (RTF) — NRPS extracts RTF data records for each selectable settlement notice. NRPS Package/Control D also contain printouts of this information. Refer to the ON—LINE NRPS Return Transaction File (RTF) exhibit. See Exhibit 3.14.1-27.

    4. Pending Transactions — NRPS uses data from transactions that have not yet posted at the Submission Processing Campus as part of the selection criteria for certain keys. With CADE 2 daily processing, there is a decrease in pending transactions. Certain transactions post daily and the IDRS/Taxpayer Information File (TIF) update accelerates one week.

      Pending Transaction Sources Possible Pending Transactions
      ECC Resequence File Adjustments (TC 29x/30x)
      Unidentified Remittance Files (URF) Extensions (TC 460)
      Tape Edit Processing (TEP) (Pipeline and Corrected Unpostable files) Merge Transactions (TCs 001, 011, and 04x)
      Generalized Unpostable Framework (GUF) and Current Cycle ECC Unpostable Files Credit Transfers (Doc Code 24, 34, 48, or 58 transactions)
      Excess Collection File (XSF)
      Generalized Mainline Framework (GMF) Error File All other significant (non-zero) transactions
      Block Out of Balance (BOB) File  
      Reject File Payments (TC 610 or TC 670)  (01-01-2015)
Notice Selection Process

  1. NRPS uses sets of criteria called Selection Keys in the selection process. The Selection Keys with similar criteria are grouped within a category that NRPS uses for prioritizing the selection order. Refer to the NRPS Selection Keys table below. The following is a list of categories in selection priority:

    • CATEGORY A — Special Priority

    • CATEGORY B — High Priority Local Selection

    • CATEGORY C — Special Handling Required

    • CATEGORY D — ES Discrepancy

    • CATEGORY E — Pending/Posted Analysis

    • CATEGORY F — Taxpayer Notice Code (Math Error) Notices

      Group Definitions

      Group Definition
      A Multiple TPNCs
      B Prior Year TPNCs
      C Filing Status TPNCs
      D Standard Deduction TPNCs
      E Schedule A TPNCs
      F Schedule D TPNCs
      G Alternative Minimum Tax TPNCs
      H Dependents with unearned income TPNCs
      I Schedules C, E, F, and J TPNCs
      J Earned Income Credit TPNCs
      K Income TPNCs
      L International TPNCs
      M Form W-2 TPNCs
      N Child Tax Credit TPNCs
      O Adjustments to Income TPNCs
      P Payments and Credits TPNCs
      Q Rejects TPNCs
      R Schedule SE TPNCs
      S Schedule H TPNCs
      T Educator Expense/Tuition and Fees Deduction TPNCs
      U Exemptions TPNCs
      V Taxes TPNCs
      W Other Credits TPNCs
      X Elderly/Disabled Credit TPNCs
      Y Child and Dependent Care TPNCs
      Z Exemptions/Standard Deduction TPNCs
    • CATEGORY G — Adjustment Notices

    • CATEGORY H — Condition Analysis

    • CATEGORY J — Low Priority Local Selection

    • CATEGORY K — Miscellaneous

    Key Description Category Group
    001 Overpaid notice for $100,000 or more. See IRM, Overpayment Notices of $100,000 or More C  
    002 Balance due notice issued and a current cycle refund in another tax period C  
    003 Overpaid adjustment notice for $100,000 or more. See IRM, Overpayment Adjustment Notices of $100,000 or More C  
    004 ES payments displayed on taxpayer copy incomplete or out of balance with tax data. See IRM, Key 004ES Discrepancy Notice with Incomplete or Out of Balance Payment Data C  
    008 Balance due notice for $100,000 or more. See IRM, Balance Due Notices of $100,000 or More C  
    009 Balance due adjustment notice for $100,000 or more. See IRM, Balance Due Adjustment Notices of $100,000 or More C  
    010 Pre-199612 tax year with EIC TPNC. See IRM, Dependent TIN TPNC Assigned to Pre-199612 Return    
    012 Notice is CP 21I or CP 22I A  
    020 One-time gasoline tax credit D  
    021 Withholding claimed on return equals posted ES payments D  
    023 One ES payment in the notice was not claimed on the return D  
    025 ES credit claimed on the return, but no ES payments are posted in the notice module D  
    026 Verify payments received more than two months after period end are not for the subsequent year D  
    027 Verify inconsistent payment in the notice module D  
    028 ES credit posted, but no ES credit was claimed on the return D  
    029 ES payment posted differs by 10 percent or more of ES credits claimed by taxpayer D  
    030 ES credit claimed less than ES credits posted equals credit balance in another tax period D  
    031 ES credit claimed less than ES credits posted equals one to four pending/posted payments D  
    032 ES credit claimed equals one to four pending/posted payments including notice period D  
    033 Refund over $1,000 with a $200 or more difference between overpay claimed and allowed D  
    034 Pending spouse offset — Check spouse's account, prevent refund from generating refund/spouse notice, transfer credit D  
    035 Tax per taxpayer and tax per computer differ by $2,000 or more — Overpayment notice H  
    036 Tax per taxpayer and tax per computer differ by $2,000 or more — Balance due notice H  
    038 Prior year credit elect/current year refund. Verify taxpayer intentions in current year H  
    040 ES Penalty posted differs from Form 2210 ES Penalty amount, no computer condition code (CCC) "P" — Check Form 2210 H  
    057 Overpaid $100,000 or more — current cycle adjustment C  
    060 Math error notice for tax period 3 or more years prior to current year See IRM, Key 060 — Tax Period More Than 2 Years Prior to Current Tax Year F A
    061 Multiple math error explanations See IRM, Key 061 — Multiple Math Error Explanations F A
    065 Schedule H filed without a return (loose Schedule H ) See IRM, Key 065 — Loose Schedule H K  
    070 Balance due notice issued and a refund was intercepted for another tax period E  
    072 Balance due notice issued and a matching credit transaction is pending E  
    073 Notice issued and a money transaction is pending E  
    074 Notice issued and an account merge transaction is pending. See IRM, Key 074 — Pending Merge Transaction E  
    075 Notice issued and a matching credit transfer transaction is pending. E  
    076 Balance due notice issued and credit is available for possible offset E  
    077 CP 14 or CP 60 (FS = 3) issued and credit is available in another tax period E  
    078 Delinquency penalty assessed, but extension of time to file (TC 460) pending E  
    081 CP 21 or CP 22 for Tax Year 93 and Reason Code 023 G  
    083 Adjustment notice issued and the credit is refunding G  
    085 Requested by another area outside Notice Review B  
    086 Requested by Notice Review B  
    087 Requested by Notice Review B  
    088 Requested by Notice Review B  
    089 Requested by Notice Review B  
    090 SSN — Requested by Notice Review B  
    091 ERS DLN — Requested by Notice Review. See IRM, Key 091 — Selection Requested by Error Resolution (ERS) B  
    092 Local Selection — CP Requested By Notice Review J  
    093 Money amount range — Requested by Notice Review B  
    094 Select if notice matches the requested partial-DLN (match on the significant digits only) J  
    094 Partial or full DLN — Requested by Notice Review B  
    095 CP number/Penalty code — Requested by Notice Review B  
    096 Adjustment reason code — Requested by Notice Review B  
    097 ZIP Code — Requested by Notice Review B  
    098 SSN/tax period — Requested by Notice Review B  
    099 Requested by Notice Review B  
    100 TPNC explanations not computer-generated. See IRM, Key 100 — Non-Standard TPNC Explanations Not Computer Generated A  
    101 Tax computed based on a single taxpayer rate F C
    102 Tax computed based on married filing joint rate F C
    103 Tax computed based on married filing separate rate F C
    104 Tax computed based on head of household F C
    105 Tax computed based on qualifying widow rate    
    106 Tax computed using married joint rate - year of spouse's death F C
    107 Tax computed based on single or head of household rate, not qualifying widow F C
    108 Tax computed based on single rate, dependent name missing F C
    109 Tax computed based on married filing separate rate with spouse as dependent F C
    110 We changed your filing status to single - claimed as dependent on other return F C
    111 Converted to Form 1040    
    112 Negative state income tax refund more than standard deduction and should be claimed on Schedule A    
    113 Welfare payments, workers compensation, etc., shown as income F K
    114 Income from Form W-2(s) and/or Form 1099(s) not included in income section F M
    115 Total adjusted to include tips from Form 4137 F M
    116 Total interest income transferred incorrectly to page 1 F K
    117 Excludable Savings Bond interest disallowed — Married Filing Separately (FS3) F K
    119 Schedule B/Schedule 1 ordinary dividends — computation and/or transfer error F K
    120 Error made on state income tax payments F K
    121 Schedule C/C-EZ computation and/or transfer error F I
    122 Schedule D — computation and/or transfer error (limited to $3,000/$1,500 Married Filing Separately [FS3]) F F
    123 Capital loss carryover from Form 4797 transferred incorrectly to income section F F
    124 IRA loss amount must be on Schedule A subject to 2 percent limitation    
    125 Unemployment compensation repaid must be on Schedule A subject to 2 percent limitation    
    126 Schedule E computation and/or transfer error F I
    127 Schedule F computation and/or transfer error F I
    128 Schedules C, E, or F adjusted based on Form 6198 or Form 8582 limitations F I
    129 We disallowed the negative amount for unemployment compensation F K
    130 Social Security Benefits repaid must be on Schedule A subject to 2 percent limitation    
    131 Error computing taxable amount of Social Security benefits F K
    132 We adjusted your Social Security benefits — negative amount claimed F K
    133 Gambling losses disallowed, deduction must be reported on Schedule A F K
    134 Disallowed child's income from Form 8814, because income greater than maximum allowed for tax year F H
    135 United States Department of Agriculture (USDA) Settlement Income moved from Form 1040, line 21 to Schedule F, line 10 F I
    136 Total income adjusted to include business property loss from Form 4684 F K
    138 Total income adjusted to include employer-provided dependent care benefits F K
    139 Adjustments to income changed to exclude Moving Expenses (Form 3903) already on Schedule A    
    140 Adjustments to income changed to move Moving Expenses (Form 3903) to Schedule A    
    141 Error adding income amounts on page 1 F K
    142 Educator expenses adjusted — claimed more than the amount allowed for filing status F T
    143 Disallowed Tuition and Fees Deduction — already claimed Education Credit    
    144 Tuition and Fees (Form 8917) computation error    
    145 Disallowed Tuition and Fees — missing Form 8917    
    146 Disallowed alimony paid deduction — SSN not provided F O
    147 Disallowed IRA deduction — exceeded maximum amount F O
    148 Modified AGI exceeds limitation for figuring IRA deduction F O
    149 We disallowed your deduction for an IRA contribution F O
    150 Changed Schedule A — some miscellaneous deductions not subject to 2 percent limitation    
    151 Disallowed student loan interest deduction — Married Filing Separately or AGI exceeds maximum amount F O
    152 Changed student loan interest deduction — computation error    
    153 Health Savings Account — Error computing deduction and/or transferring to page 1 F O
    154 Tuition and fees deduction disallowed — Married Filing Separately, AGI exceeds limitation, or dependent on another return F T
    155 Tuition and fees deduction adjusted — filing status limitation F T
    157 Changed Archer MSA deduction (Form 8853) — exceeded allowable amount F O
    158 Error was made in figuring your deduction for SE Tax F R
    159 SE Tax deduction disallowed — use Form 4137 F R
    160 SE Tax deduction disallowed — no SE Tax reported F R
    161 Adjustment for tax deferred savings plan disallowed — wages on Form W-2 already reflect any adjustments F M
    162 Amount of tax on page 2 changes — error figuring or transferring part III, Form 8889.    
    164 Disallowed alimony paid to spouse claimed as exemption F O
    165 Disallowed combat pay excluded from taxable income F M
    166 Employee business expenses must be claimed as an itemized deduction F O
    167 Disallowed Qualified Performing Artist (QPA) expenses F O
    168 Disallowed Worker's Compensation deduction for line of duty injury F M
    169 Disallowed jury pay deduction — not included in income F O
    170 Changed amount of ordinary dividends on page 1 — cannot be less than amount of qualified dividends    
    171 Disallowed health savings account deduction — missing or incomplete Form 8889    
    172 Disallowed Archer MSA amount on page 1 — missing or incomplete Form 8853    
    174 Error in computing adjustments to income on page 1 F O
    175 Error computing adjusted gross income page 1 F O
    176 AGI transferred from page 1 to page 2 incorrectly F O
    177 Error computing medical/dental expenses on Schedule A F E
    178 Error computing taxes paid on Schedule A F E
    179 Error computing interest expenses on Schedule A F E
    180 Error computing contributions on Schedule A or exceeds 1/2 AGI F E
    181 Changed total gifts to charity on Schedule A — missing Form 8283    
    182 Changed casualties and theft losses on Schedule A — Form 4684 computation or transfer error to Schedule A    
    183 Error computing total miscellaneous expenses on Schedule A F E
    183 Form 4684 — Computation and/or transfer to Schedule A error F E
    184 Gambling losses exceeding winnings were disallowed F E
    185 Schedule A — Other miscellaneous deductions adjusted due to two percent limitation F E
    186 Limitation on itemized deductions due to AGI F E
    187 Schedule A — Error computing total itemized deductions and/or transferring to page 2 F E
    188 We made adjustments to taxable income based on your filing status F E
    189 We used your itemized deduction instead of standard deduction F E
    190 Standard deduction used in lieu of itemized due to other changes F D
    191 Error computing the allowable deduction for dependent on another return F D
    192 Error computing additional standard deduction for blindness or over 65 F D
    193 Zero not entered on Form 1040 when deductions not itemized — Married Filing Separately F D
    194 Error entering standard deduction — amount not entered or amount not correct for Filing Status F D
    195 Changed total exemption amount — taxpayer claimed as dependent on other return    
    196 Claim for both standard and itemized deductions disallowed F D
    197 Tax recomputed — Taxpayer claimed as dependent on another person's return F Z
    198 Error entering combined standard deduction and personal exemption amount F Z
    199 Error made subtracting deductions from adjusted gross income F D
    200 Error computing exemptions amount F U
    201 Incorrect limitations on exemptions due to AGI F U
    202 Taxpayer claimed as a dependent on another return F U
    203 We applied your exemption — Married Filing Jointly (FS2) with tax liability F U
    204 Filing status code not compatible with claimed spouse F U
    205 We did not allow your personal exemption — Invalid or missing TIN F U
    206 Spouse's exemption disallowed — Invalid or missing TIN F U
    207 Gambling loss greater than standard deduction - subject to Schedule A 2 percent limitation    
    208 Error computing taxable income amount F U
    209 Tax entered incorrectly from tax table or tax rate schedules F V
    210 Tax recomputed using tax table - not qualified for tax computation using Part IV, Schedule D    
    211 Tax recomputed using worksheet or maximum capital gains rates F V
    212 Schedule J computation and/or transfer error F I
    213 Schedule J — Unable to compute tax due to previous math error F I
    214 Form 8615 transfer error F H
    215 Investment income less than minimum amount, Form 8615 not required F H
    216 Form 8814 — Error figuring Part I and/or transferring that amount to page 1 F H
    217 Error figuring tax — Tax adjusted to zero F V
    218 IRS figured the tax F V
    219 Error computing tax plus additional tax on Form 1040 F V
    220 Form 8615 — Unable to compute tax due to previous math error F H
    221 We recomputed tax liability by deleting taxes paid on Form 8615 F H
    222 Error figuring or transferring tax on lump sum distribution on Form 4972 F V
    225 Schedule J not used in Form 6251 computation    
    226 Error on Form 6251 computing alternative minimum taxable income F G
    227 Form 6251 — Error figuring tentative minimum tax F G
    228 Error transferring Alternative Minimum Tax from Form 6251 to Form 1040 F G
    229 Form 6251 — Computation error due to presence of Form 8844 F G
    230 Error adding Alternative Minimum Tax to Form 1040 tentative tax F G
    231 Foreign tax credit limited due to Form 6251 F G
    232 Form 2441 computation and/or transfer error F Y
    233 Child Care Credit disallowed — No earned income shown for taxpayer or spouse F Y
    234 Child Care Credit disallowed — No provider TIN F Y
    235 Child Care Credit disallowed — Child on Form 2441 has missing SSN F Y
    236 Form 2441 — Prior year expenses disallowed F Y
    237 Form 2441 — Part III computation and/or transfer error F Y
    238 Child Care Credit disallowed — Spouse or dependent cannot be provider F Y
    239 Child Care Credit disallowed — married filing separately    
    240 Schedule R computation and/or transfer error F X
    241 IRS figured credit for elderly/disabled using Schedule R F X
    242 Disallowed education credits — Student TIN missing/invalid, Filing Status is Married Filing Separately (FS3), AGI exceeded maximum for Filing Status, or student not claimed as exemption F T
    243 Form 8863 computation and/or transfer error F T
    244 Form 8880 computation disallowed — AGI exceeds limitation F W
    245 Form 8880 computation adjusted — Amount exceeds filing status limitation F W
    246 Retirement savings contribution credit disallowed — Age disqualification F W
    247 Form 8880 computation and/or transfer error F W
    248 Child Care Credit disallowed — Invalid Dependent TIN    
    251 Child Tax Credit and/or Additional Child Tax Credit reduced/removed — Age requirement not met F N
    252 Child Tax Credit and/or Additional Child Tax Credit reduced/removed — No amount entered or amount incorrect based on boxes checked F N
    253 Error computing Mortgage Interest/Adoption/DC Home Credit    
    254 Error computing Credit for Qualified Adoption Expenses on Form 8839 Or xfer to return pg 2 error F W
    255 Disallowed Adoption Credit – Form 8839 incomplete or missing    
    256 Changed amt of exempt for non res child – incomplete documentation    
    257 Disallowed Mortgage Int Credit – mortgage int paid should be on Sch A F W
    260 Form 3800 computation and/or transfer error F W
    264 Recomputed total credits – addition in error F W
    265 Recomputed tax minus total credits – subtraction error F W
    266 Changed total credits (return pg 2) – credit not limited to tax minus tent min tax Form 6251 F G
    267 Credit limited by Alternative Minimum Tax per Form 6251 F W/G
    268 Schedule SE computation and/or transfer error F R
    269 Schedule SE adjusted to reflect true net earnings before multiplying by .9235 F R
    270 Error transferring net farm profit from Schedule F to Schedule SE F R
    271 Error transferring net profit/loss from Schedule C to Schedule SE F R
    272 Optional method on Schedule SE disallowed — Not qualified F R
    273 No Self-Employment Tax if SE Income is less than $434.00 F R
    274 Changed SS/MED tax on unreported tip income – computation (F4137) or xfer to return pg 2 error F V
    275 Error transferring IRA tax from Form 5329 to Form 1040 F V
    276 Advance EIC payments reported on Form 1040 do not agree with Form W-2 and other documents F V
    277 Error computing federal unemployment tax part of Schedule H F S
    278 Schedule H — Error figuring or totaling taxes F S
    279 Deleted household employment taxes – cash wages (Schedule H) not enough to owe SS/MED taxes F S
    280 Schedule H computation and/or transfer error F S
    281 Total tax adjusted to exclude Form 8697 refundable interest – form should be filed separately F V
    282 Error computing total tax on Page 2 F V
    283 Total tax withheld does not agree with Form W-2(s) or other documents F P
    284 Earned Income Credit computed by IRS F J
    285 Error computing earned income credit on Form 1040 F J
    286 Disallowed EIC – FS is married separate F J
    287 EIC disallowed due to maximum AGI F J
    288 EIC disallowed due to lack of earned income F J
    290 EIC not allowed — Taxpayer claimed as dependent on another return F J
    291 Disallowed EIC – investment income exceeds amt allowed for credit F J
    292 IRS figured EIC — Taxpayer may be eligible for larger EIC F J
    293 EIC disallowed — Taxpayer younger than 25 or 65 or older F J
    294 Excess Social Security or RRTA tax entered incorrectly F P
    295 You incorrectly figured or transferred your Additional Child Tax Credit F N
    296 Form 4136 computation and/or transfer error F P
    297 Error computing total payments F P
    298 Deleted state income taxes from federal taxes – IRS does not collect state taxes F P
    299 Error computing balance due or overpayment amount F P
    502 Medical Savings Account (MSA) Deduction disallowed — claimed prior to 1997 F B
    503 Moving Expenses moved from Schedule A to page 1 F B
    505 SE Tax deduction disallowed on page 1 — Claimed prior to 1990 F B
    506 Amt claimed for education expenses deduction exceeds limit based on FS    
    507 Disallow other payments claimed on pg 2 – missing form    
    508 Reimbursed Business Expenses disallowed on page 1 — 1990 and later F B
    509 Health Savings Account Deduction disallowed — Claimed prior to 2004 F O
    510 Limit on total itemized deductions on Schedule A    
    512 Changed amt claimed as tuition and fees – computation error on Form 8917    
    515 Recomputed tax –10 year averaging must be used to compute tax on total distributions F B
    520 Error computing adjustments and tax preference items on Form 6251, Part I F B
    521 Disallowed Residential Energy Credit – missing or incomplete Form 5695    
    522 Error on Form 6251 computing alternative minimum taxable income F B
    525 Adoption Credit disallowed — Claimed prior to 1997 F B
    530 Computed rate reduction credit on 2001 return – insufficient advance pmt F B
    531 Rate Reduction Credit not allowed — Maximum allowed in 2001 F B
    532 Rate Reduction Credit — Error figuring or entering F B
    533 Rate Reduction Credit disallowed — Taxpayer claimed as dependent on another return F B
    534 Tax computed using 10 percent tax bracket – TY 2001 and claimed as dep on another return F B
    535 Rate Reduction Credit disallowed — Tax year not 2001 F B
    536 Changed total exemp amt – computation Form 8914 or xfer to return pg 2 error F B
    537 Changed total exemp amt –TIN missing or invalid Form 8914 F B
    538 Changed total exemp amt –TIN of person displaced by hurricane Form 8914 matches primary or secondary taxpayer or dependent on page 2 F B
    539 Changed EIC or Additional Child Tax Credit – prior year earned income not used in both computations F B
    540 Earned income credit disallowed, Form 1040 indicates not qualified F B
    541 EIC changed — Non-taxable earned income source not provided F B
    542 Adjusted your EIC — Modified AGI not computed correctly F B
    543 EIC changed — Incorrect nontaxable earned income F B
    544 EIC changed — Nontaxable earned income from Form W-2(s) was not included F B
    545 Changed total tax – cannot claim retirement savings before 2002 F B
    546 We can't allow Additional Child Tax Credit — Need three or more qualifying children F B
    547 Child or Additional Tax Credit changed — Advance payment received in 2003 F B
    548 Educator Expenses, Tuition and Fees, and Retirement Savings Contribution Credit disallowed — Claimed prior to 2002 F B
    549 You cannot claim the Child Tax Credit, Additional Child Tax Credit, Hope Credit, Lifetime Credit, or Student Loan Interest Deduction for tax years prior to 1998 F B
    550 Disallowed Loss on SCH C, E or F —F6198 not filed F Q
    551 Moving expenses disallowed — Form 3903/Form 3903-F missing or incomplete F Q
    552 Casualty/theft disallowed, Form 4684 missing or incomplete F Q
    553 Disallow employee business expense — Form 2106 incomplete or missing F Q
    554 Standard deduction used since Schedule A was missing/incomplete F Q
    555 Substituted additional std ded for itemized ded —lowers tax F Q
    558 Tax adjusted based on information received F Q
    559 Recomputed tax at max rate -parents taxable income not provided on F8615 F Q
    560 Changed computations for long term gains to short term —Schedule D not attached F Q
    561 Exceeded limit for residential energy credit on F5695    
    562 Child Care Credit disallowed — Number of months for students, disabled, or looking for work missing F Y
    563 Child Care Credit disallowed, Form 2441 or Schedule 1 missing or incomplete F Q
    564 Disallowed child/dep care credit — SSN does not match SSA records    
    565 Elderly/Disabled Credit disallowed — Schedule R/3 missing or incomplete F Q
    566 Disallowed Health savings account deduction — missing or incomplete F8889    
    567 Disallowed Residential energy credit — missing or incomplete F5695    
    568 We cannot allow your Hope and/or Lifetime Learning Credit — Form 8863 incomplete or not attached F Q
    569 Retirement Savings Contribution Credit disallowed — Form 8880 missing or incomplete F W
    570 Disallowed refundable credit for prior year min tax — missing or incomplete F8801    
    571 Disallowed residential energy credit — cannot claim before 2006    
    572 Disallowed/Limited residential energy credit — limited to amt of tentative tax liability    
    573 DC Homebuyer's Credit disallowed — Form 8859 incomplete or not attached F Q
    575 Disallowed other (general business) credit — F3800 missing/incomplete F Q
    580 SE Tax not computed by taxpayer — IRS computed (EIC related) F Q
    581 Unemployment compensation repaid subject to limit on Sch A — Return adjusted    
    582 Form W-2(s) missing, cannot verify tax withheld amount F Q
    583 Cannot file Sch A and Sch L— return adjusted for max benefit    
    584 Denied claim for refund American Opportunity Credit — missing or incompleteForm 8863    
    585 EIC disallowed — Schedule EIC incomplete or missing F Q
    586 Changed EIC —Form W-2 and wages claimed don't match F Q
    587 Reduce credit on Faye Form 5695    
    588 Adjusted tax on unemployment compensation    
    589 Disallowed new motor vehicle taxes SCH A — cannot claim with sales tax    
    590 Excess Social Security or RRTA tax withheld disallowed, Form W-2(s) missing F Q
    591 Change tuition and fees deduction — error in computation Form 8917    
    592 We cannot allow your Additional Child Tax Credit — Sch 8812 incomplete or not attached F Q
    593 Disallowed Add'l standard ded for Real Estate Taxes — Sch A present    
    594 Health Coverage Tax Credit disallowed — Not eligible per IRS records F W
    595 Regulated Investment Company Credit disallowed, Form 2439 missing/incomplete F Q
    596 Changed Credit for Federal Tax paid on oils/fuels — Form 4136 missing/incomplete F Q
    597 Disallowed tuition and fees credit — F8912 missing    
    598 Change exemption — F8332/2120/divorce decree missing/incomplete    
    600 SCH L figured or amt transferred incorrectly on Form 1040A    
    601 Changed Standard Deduction due to limitations    
    602 Schedule L missing or incomplete    
    603 Disallowed First Time Homebuyer Credit — invalid purchase date    
    604 Disallowed Child/dep care exp, educ credits, (additional) Child Tax Credit Missing dependent SSN/individual taxpayer identification number (ITIN) F U
    605 Invalid dependent SSN/ITIN F U
    606 Exemption disallowed for dependent born after end of tax year F U
    607 Primary Exemption disallowed — Taxpayer deceased prior to tax period F Q
    608 Secondary Exemption disallowed — Taxpayer deceased prior to tax period F Q
    609 Changed return — SS records show dep(s) deceased F Q
    610 Disallowed Dependent Exemption — born and died with no proof    
    614 Changed amount of SSN and Medicare Tax on Wages — error on Form 8919    
    615 Recovery Rebate Credit Disallowed — SSN missing or incomplete    
    616 Recovery Rebate Credit Disallowed — spouse's SSN missing or incomplete    
    617 Recovery Rebate Credit changed — Dependent SSN missing or incomplete    
    618 Recovery Rebate Credit Disallowed — Dependent on another return    
    619 Recovery Rebate Credit changed — qualifying Dependent over 17    
    620 Recovery Rebate Credit Disallowed — earned income is less than $3000    
    621 Recovery Rebate Credit changed — error computing the credit    
    622 Recovery Rebate Credit changed — error applying the AGI limit    
    623 Recovery Rebate Credit Disallowed — no qualifying income    
    624 We computed your recovery rebate credit    
    631 Disallowed First Time Homebuyer Credit — location and / or timeline disqualifies    
    632 Disallowed First Time Homebuyer Credit — home purchased after filing    
    633 Disallowed DC First Time homebuyer credit since you claimed FTHBC    
    634 Disallowed First Time Homebuyer Credit — Since you claimed DC FTHBC    
    635 Disallowed First Time Homebuyer Credit — AGI exceeds limit    
    636 Disallowed First Time Homebuyer Credit — Already claimed in 2008    
    637 Disallowed First Time Homebuyer Credit — do not meet age requirements    
    638 Disallowed First Time Homebuyer Credit — cannot purchase from a relative    
    639 Disallowed First Time Homebuyer Credit — purchase price exceeds limit    
    640 Disallowed First Time Homebuyer Credit — copy of settlement not attached    
    641 Disallowed First Time Homebuyer Credit — ineligible due to prior home ownership    
    647 Disallowed qualified mortgage insurance premiums on SCH A — AGI limit exceeded    
    649 Changed amount of First Time Homebuyer Credit repayment — error on Form 5405    
    650 Deceased taxpayer not eligible for income exclusion F Q
    653 EIC not allowed — No Form 8862 F Q
    654 Disallow Making Work Pay and Government Retiree Credit — must be tax year 2009    
    655 Computation or transfer error from Form 8863    
    656 Denied claim for refund Amer Opport Credit — missing or incomplete F8863    
    658 Disallow Making Work Pay — missing SSN    
    659 Error transferring First Time Homebuyer Credit from line 16 Form 5405    
    660 Error figuring First Time Homebuyer Credit on line 16 Form 5405    
    661 Error figuring First Time Homebuyer Credit on line 10 Form 5405    
    662 Error transferring First Time Homebuyer Credit on line 10 Form 5405    
    663 Recomputed Making Work Pay Credit — error applying earned income limitation    
    664 Recomputed Making Work Pay and Government Retiree credit based on corrected 2009 input    
    667 Recomputed Making Work Pay and Government Retiree credit — calculation error    
    668 Changed Health Coverage Tax Credit — computation Form 8885 and/or transfer error F W
    669 Form 8885 credit reduced or removed — Not eligible and/or line 2 support not attached to return F W
    670 Form 8885 credit reduced or disallowed due to Medicare status F W
    673 Disallow Refundable Educ Credit — SSN missing from Form 8863    
    674 Disallow Refundable Educ Credit — SSN on Form 8863 does not match SSA records    
    675 Disallow Refundable Educ Credit — TP Married Filing Separately    
    676 Disallow Refundable Educ Credit — TP dependent on another return    
    677 Disallow Refundable Educ Credit — TP does not meet AGI requirements    
    678 Changed refundable Educ Credit — error on Form 8863    
    680 Changed First Time Homebuyer Credit — Error Figuring/Transferring Form 5405    
    681 Changed First Time Homebuyer Credit — exceeds limit    
    682 Changed First Time Homebuyer Credit — subject to AGI limitation    
    683 Disallowed First Time Homebuyer Credit — Form 5405 missing/incomplete    
    684 Disallowed First Time Homebuyer Credit — home must be in US    
    685 Disallowed First Time Homebuyer Credit — purchase not within eligible dates    
    686 Disallowed First Time Homebuyer Credit — must be at least 18 years old    
    687 Disallowed First Time Homebuyer Credit — unable to verify age of purchaser    
    688 Disallowed First Time Homebuyer Credit — taxpayer eligible to be a dependent on another return    
    689 Disallowed First Time Homebuyer Credit — home cannot be purchased from relative    
    690 Disallowed First Time Homebuyer Credit — home purchased prior to tax year    
    691 Disallowed First Time Homebuyer Credit — missing settlement statement    
    692 Disallowed First Time Homebuyer Credit — taxpayer exceeds income limits    
    693 Disallow credit on line 71, Form 1040    
    701 We did not allow your EIC or your spouse's exemption — Invalid/missing secondary SSN F J
    702 We did not allow your EIC — Primary or secondary TIN issued by IRS F J
    703 Changed standard deduction figured on SCH L — limits figured incorrectly    
    741 Changed EIC — SSA's birth dates(s) of qual child (ren) show age requirement not met F J
    743 EIC adjusted because of missing or invalid dependent SSN F J
    745 We reduced or removed your EIC — Child has ITIN F J
    748 Personal exemption and EIC disallowed — Invalid SSN F J
    750 Part or all of your EIC not allowed – child(ren) did not meet age requirement F J
    751 Part or all of your EIC not allowed – child(ren) did not meet relationship requirement F J
    752 Part or all of your EIC not allowed – child(ren) did not live with you required time F J
    753 Credit amount changed on Form 3800 – incorrect total from Form 8941 F J
    754 Credit not allowed for Small Employer Health Insurance Premium on Form 3800 and Form 8941 missing or incomplete F J
    755 Credit amount changed for Small Employer Health Insurance Premium on Form 3800-more than 25 employees F J
    756 Credit amount changed for Small Employer Health Insurance Premium on F 3800-more than 50k avg wages F J
    All Refer to IRM 3.38.147, International Notices, for International NRPS Selection Keys. F L
  2. Within a category, NRPS assigns a priority to each Selection Key.

  3. NRPS performs the following steps for each Selectable Notice Record in the notice stream until the selection limit is reached, or until all notice records are processed:

    1. Begin with Category A.

    2. Use the highest priority Selection Key in the Category.

    3. If the Notice Record meets the Selection Key Criteria, go to step 8.

    4. If the current Selection Key is the last in the Category, go to step 6.

    5. Use the next highest priority Selection Key in the Category, go to step 3.

    6. If there are no more NRPS Categories remaining, go to step 16.

    7. Move to the next Category, go to step 2.

    8. Assign the current Selection Key as the Primary Selection Key.

    9. If there are no more NRPS Categories remaining, go to step 15.

    10. Move to the next Category.

    11. Use the highest priority Selection Key in the Category.

    12. If the Notice Record meets the Selection Key Criteria, go to step 14.

    13. If the current Selection Key is the last in the Category, go to step 9.

    14. Assign the current Selection Key as the Secondary Selection Key, go to step 17.

    15. Do not assign a Secondary Selection Key, go to step 17.

    16. Do not select the notice.

    17. End NRPS Processing.

  4. The NRPS selection limit by default is 30,000 notices. Each Submission Processing Campus may increase this limit (via the Local Control File) by any number, and to a selection as high as 50,000. As the number of selections increases, however, the following changes occur in the selection process:

    If the number of notices selected... Then NRPS will...
    Comes within 1,000 of the selection limit (29,001 by default) Bypass the following keys:
    • All Category A Keys except 011, 012, 013, 014, and 100

    • All Category B Keys

    • All Category F Key except 060

    • All Category J Keys

    Reaches the selection limit (30,000 by default) Process the following keys only :
    • Category A Keys 011, 012, 013, 014, and 100.

    • Category G Keys 081.

  5. All Category F, Taxpayer Notice Codes (TPNCs), are reviewed at 100 percent at the beginning of each filing season to ensure that all TPNCs are reviewed at least once. To ensure that the NRPS automated selection process selects at 100 percent, all TPNC percentages that have been manually adjusted using the Local Control File must be cleared prior to the first cycle.

    1. Use the Notice Disposition Reports to monitor the error rates of all TPNCs.

    2. Refer to the table in IRM, NRPS Local Control File, which is used to determine the correct Local Control File (LCF) selection rate for each TPNC.

  6. Complete a 100 percent review of the notices below at the beginning of the filing season and during the peak cycles. Returns should always be ordered for this review. Request 100 percent of these notices on the Local Control File (LCF) until you can determine the error rate is less than five percent:

    1. CP 14 Non-RPS Notices — Ensure that payments or installment agreement requests are not attached to the returns or in the envelopes. For payments attached to the return, refer to IRM, Discovered Remittance. For Installment Agreement requests, refer to IRM, Taxpayer Correspondence. This review is especially important during peak cycles.


      NRPS will bypass CP 14 notices generated from Electronic Filing (ELF) returns.

    2. CP 51A, CP 51B, CP 51C, Non-Compute Notices — Review the return to verify that it is a true non-compute. Refer to IRM, Reviewing Non-Compute Notices - CP 51A, CP 51B, and CP 51C.

    3. CP 30,CP 30A, Estimated Tax Penalty Notice — Verify the accuracy of the change in the ES Tax Penalty as computed by the taxpayer. Refer to IRM,CP 30 — Estimated Tax (ES) Penalty Notice, and IRM,CP 30A — Estimated Tax (ES) Penalty Recomputation Notice.  (01-01-2015)
CP Notice Types

  1. Selectable Notices — These notices are subject to selection under NRPS and may also be subject to Manual Intervention:

    • CP 10 — Math Error/Reduced Credit Elect/Overpaid

    • CP 10A — EIC Math Error/Reduced Credit Elect/Overpaid

    • CP 11/CP 711 — Math Error/Balance Due

    • CP 11A — EIC Math Error/Balance Due

    • CP 12/CP 712 — Math Error/Overpaid

    • CP 12A — EIC Math Error/Overpaid

    • CP 13/CP 713 — Math Error/Even Balance

    • CP 13A — EIC Math Error/Even Balance

    • CP 14/CP 714 — Non-Math Error Balance Due

    • CP 14I — IRA Non-Math Error Balance Due

    • CP 16 — Math Error/Overpayment Offset

    • CP 21/CP 721 — DP Adjustment

    • CP 22/CP 722 — DP Adjustment

    • CP 23 — ES Discrepancy/Balance Due

    • CP 24 — ES Discrepancy/Overpaid

    • CP 25 — ES Discrepancy/Even Balance

    • CP 30 — ES Penalty/Overpaid

    • CP 30A — ES Penalty Reduced/Overpaid


      CP 30 and CP 30A notices are only selected for review if requested on the local control file or if there is a Refund-E transcript for the same SSN/Tax Period as the notice. These notices are not included in the review package if not selected.

    • CP 51A — Non-Compute/Balance Due

    • CP 51B — Non-Compute/Overpaid

    • CP 51C — Non-Compute/Even Balance

    • CP 60 — Adjustment/Credit Reversal/Balance Due

    • CP 62 — Credit Transfer

    • CP 71/CP 771 — Balance Due Reminder Notice

    • CP 77 — Alaska Permanent Fund Dividend Levy Program (AKPFD)/Final Notice

    • CP 78 — AKPFD/Reminder Notice

    • CP 90 — Federal Payment Levy Program (FPLP)/Final Notice

    • CP 91 — FPLP/Final Notice Before Levy on Social Security Benefits

  2. Associated Notices — These notices are not subject to selection, but are included in the review package if NRPS selects another notice for the same taxpayer/spouse and are also subject to Manual Intervention:

    • CP 08 — Taxpayer May Qualify for Additional Child Tax Credit

    • CP 09 — Taxpayer May Qualify for EIC (with children)

    • CP 17 — Refund of Excess ES Credits

    • CP 27 — Potential EIC for Low Income Taxpayer (without children)

    • CP 45 — Reduction in Credit Elect Amount

    • CP 49/CP 749 — Adjustment/Overpayment Offset

    • CP 54 — SSN and Name Inquiry

    • CP 54B — SSN and Name Inquiry - Refund

    • CP 54E — SSN and Name Inquiry on Estimated Tax Payments

    • CP 54G — SSN and Name Inquiry - Even/Balance Due

    • CP 54Q — SSN and Name Inquiry - Second Request

  3. Manual Intervention Notices — NRPS will neither select these nor associate them with a selected notice. However, they may appear on the NRPS Manual Intervention List.

    • CP 15A — Civil Penalty Notice

    • CP 15B — Trust Fund Recovery Penalty

    • CP 18 — Refund Withheld Unallowable Item

    • CP 31 — Undelivered Refund Check

    • CP 32 — Refund Inquiry

    • CP 32A — Refund Inquiry

    • CP 39 — Offset from Secondary SSN

    • CP 42 — Offset to Secondary SSN

    • CP 44 — IMF Overpayment to Non-IMF Liability

    • CP 52 — Reduced SE Earnings

    • CP 53 — Electronic Deposit not Honored

    • CP 74 — EIC Examination Intent

    • CP 75 — EIC Recertification

    • CP 75C — EIC Resolution

    • CP 79 — EIC Recertification/Form 8862

    • CP 79A — EIC Ban (2 Years)

    • CP 79B — EIC Ban (Indefinite)

    • CP 80 — Non-receipt of Tax Return/Credit Balance

    • CP 81 — Refund Statute within six months of Expiration/Credit Balance

    • CP 84 — EIC Certification Soft Notice

    • CP 85 — EIC Disqualification Soft Notice

    • CP 92 — State Income Tax Levy Program (SITLP)/Final Notice

  4. If there is a CP Notice selected by NRPS for OLNR inventory and a Priority Refund Transcript is in AMS within the same cycle, NRPS will provide a statement on the NRPS Package/Control D Package Contents Page indicating the TIN that is also a Priority Refund Transcript in AMS.  (01-01-2015)
NRPS Output Files

  1. After NRPS completes the selection process, it combines all of the selection information into NRPS batches. A NRPS batch consists of the following:

    • NRPS Batch Separator Page

    • NRPS Package/Control D

    • NRPS Selection List

  2. Use Control D/Web Access to view NRPS batches. For additional information, refer to the Notice Review Job Aid 2534-002 and IRM,On-Line Notice Review (OLNR).

  3. NRPS produces the following additional types of output:

    • NRPS Batch Control Sheet

    • NRPS Document Charge-Out

    • NRPS Batch Return Request List

    • NRPS Association List

    • NRPS Manual Intervention List

    • NRPS Selection Report

    • NRPS TPNC Trend List Report

    • NRPS Non-package Selection List

    • NRPS Duplicate Selection List

    • Notice Retype Error Report

    • NRPS Automated Local Control File Selection Report


      Refer to IRM, Other NRPS Batch Output for a description of each of these.

  4. All of the above printouts generate from the following NRPS output files:

    NRPS File... Generates the following...
    NRP 6110 NRPS Package/Control D for notices (associated notice information) selected in the notice selection processing
    NRP 6110P Hard Copies. These include copies of the notices, commonly referred to as the "Quick Print" .


    The Quick Print is built from data contained in a separate file (called RTY68), and though it is designed to resemble the live notice data, it does not have any impact on how the notice truly looks when printed

    NRP 6120 Document Charge-outs and Files Batch Control Sheets for the NRPS Package/Control D
    NRP 6130 Duplicate copy of Selection List and IMF NRPS Batch Control Sheets for the NRPS Package/Control D
    NRP 6630
    • Large Dollar List

    • NRPS Non-Package Selection List

    • NRPS Manual Intervention List

    • NRPS Selection List

    NRP 4510 Notice Listing
    NOR 0141 Intercept NOREF List


    Listing will generate for BMF.

    NRP 8240 Notice Retype Error Report
    NRP 6096 Notice Retype Error Report
    NRP 6610 IMF Notice Listing of Selected CPs  (01-01-2015)
NRPS Batch Separator Pages

  1. The Batch Separator Page identifies the beginning of each batch and contains the following information:

    • Page Number

    • Batch Number

    • Batch Type — Either "OVERPAID" or "NOT OVERPAID"

    • Batch Sort — Either CP, KEY, or MULTIPLE

    • Current Cycle  (01-01-2015)
NRPS Package/Control D

  1. NRPS Package/Control D contains various types of information needed to review each selected CP Notice. Each batch may contain up to 20 selected notices.


    Most packages contain only one notice. However, the NRPS Package/Control D will contain all selectable or associated CP Notices that generate in the current cycle for a taxpayer or spouse, if one or more is selected for review.

  2. Each NRPS Package/Control D contains a Contents Page, On-Line notice information, transcribed posted return data, an Entity transcript, and a tax module transcript. These items are explained in greater detail in the subsections that follow.  (01-01-2015)
NRPS Package/Control D — Package Contents Page

  1. Viewed on-line as the first page of each NRPS Package/Control D, this page contains the following information:

    1. Selection Key Number, along with a brief description of the key

    2. List of requested documents

    3. Manual Intervention Reason Codes

    4. List of all selected or associated CP Notices in the package, with CP number and DLN

    5. List of pending transactions

    6. Statement indicating there may be a Priority Refund Transcript in the same cycle on AMS, if applicable

    Exhibit 3.14.1-28.  (01-01-2015)
NRPS Package/Control D — On Line Notice Information

  1. Depending on the CP selected, it may either be a duplicate of the "live" notice, or a shortened version of it. The shortened version displays only the notice record information, such as dollar amounts and TPNC numbers, as opposed to the Taxpayer Bill of Rights language and TPNC explanations.

  2. For CP Notices, the visual representation (or "Quick Print" ) of the notice is created from its own separate file, rather than from the Notice Edit File, as in the past. This change in source data means that occasional abnormalities appearing on the "Quick Print" (which is in the old Legacy notice format), are NOT part of the Notice Edit File. Therefore, those abnormalities will not be on the printed notice.  (01-01-2015)
NRPS Package/Control D — Transcribed Posted Return Data

  1. Displays transcribed return fields for selected settlement notices. This is also referred to as the Return Transaction File (RTF). Exhibit 3.14.1-27.  (01-01-2015)
NRPS Package/Control D — Entity Transcript

  1. Displays the entity information for the notice TIN, as well as for the secondary TIN, if applicable (optional).  (01-01-2015)
NRPS Package/Control D — Tax Module Transcript

  1. Displays the tax module transactions for the notice taxpayer identification number (TIN), as well as for the secondary TIN, if applicable (optional).  (01-01-2015)
NRPS Selection List

  1. The last page of each batch shows the following information for each CP Notice:

    • Count (item number on the list)

    • TIN

    • Document Locator Number (DLN)

    • Notice Sequence Number

    • CP Number

    • Primary Selection Key

    • Secondary Selection Key

    • Notice Disposition Choices  (01-01-2015)
Other NRPS Batch Output

  1. NRPS produces two different (but related) Batch Control Sheets. Refer to the NRPS 6130 — Batch Control Sheet exhibit. Exhibit 3.14.1-29.


    The Files Function copy has a line for each batch, showing the number of document charge-outs in each batch. (Refer to IRM, Associating Documents from Files).

  2. The NRPS Document Charge-out provides information needed by the Files Function to pull documents for use in reviewing CP Notices.

  3. The NRPS Batch Return Request List is a cover sheet that separates the document charge-outs by batch and to accompany the requested documents sent by the Files Function. It contains a line for each charge-out in the batch.

  4. The Manual Intervention List includes notices that may or may not have been selected for review, but manual intervention is required before allowing them to be mailed (if appropriate).

    1. This list is divided into three parts based on the Manual Intervention (MI) Code. If any one of the MI Codes for a Manual Intervention notice is a "1" , then it is printed on the MI Code 1 List. If any one of the MI Codes is a "4" , it is printed on the MI Code 4 List.

    2. Notices on this list may have also been selected by a NRPS selection key.

    3. Refer to IRM, Manual Intervention List for additional information.

  5. The NRPS Selection Report contains notice/transcript input and selected-for-review counts, sorted by selection key and by Taxpayer Notice Code (TPNC), with year-to-date totals, for notices selected in the current cycle. Refer to the NRPS 6130 — NRPS Selection Report exhibit. Exhibit 3.14.1-30.

  6. The Notice Retype Error Report (NRPS 8240) contains information on notices that were unable to be processed after cycle release. The notices on this report must be recreated by one of the following methods:

    • All Individual Master File (IMF) notices, with the exception of TDA notices, should be recreated using the transaction code (TC) 971 action code (AC) 264 process.

    • Input a TC 971 AC264 (using CC REQ77 in IDRS) to create a Notice Recreate Transcript (CP 67) that will fall out to OLNR. These transcripts will be received in batch "00000" . Once the transcript is received, the notice can be recreated by converting the CP 67 transcript into a retyped CP limited to:

    • CP 08

    • CP 09

    • CP 10

    • CP 11

    • CP 12

    • CP 13

    • CP 14

    • CP 16

    • CP 23

    • CP 24

    • CP 25

    • CP 27

    • CP 30

    • CP 30A

    • CP 45

    • CP 49

    • CP 51

    • CP 711

    • CP 712

    • CP 713

    • CP 714

  7. The NRPS Automated Local Control Selection Report shows the previous four weeks' selection percentages and the current cycle's selection percentage, based on the automated selection process.  (01-01-2015)
NRPS Local Control File

  1. Submission Processing Campuses can adjust the number of notices selected weekly by NRPS through the use of the Local Control File (LCF) produced by CC NRP97 on IDRS.

  2. The LCF can increase or decrease the number of notices selected for review. Additionally, the non-print indicator can be input on the LCF to suppress printing of NRPS Package/Control D when only a list is needed. Returns may be requested for the selected notices, if necessary.


    Only the Math Error notice selection volumes can be decreased.

    1. NRPS will automatically delete a specific SSN or DLN request when selected or if it is not selected within six weeks of its LCF request. This prevents the file from getting unnecessarily large.

    2. Other types of requests remain on the LCF until action is taken to change or delete the request.

    3. Purge all TPNC requests, in Category F, from the LCF at the beginning of each year to ensure that the NRPS automated selection process is initiated.

  3. Use input screen information for instructions on how to use substitute keys 085-089 and 099 to identify local selections.


    Use Substitute Key 085 to identify selection requests from other Submission Processing Campuses only.

  4. TPNC defect rates and selection percentages are computed by the NRPS system using data from OLNR NRPS 0030 Report. It is no longer necessary to manually set the percentages for TPNC selection. While the systemic selection can be overridden by manual input, this occurrence should be kept to a minimum and only under special circumstances (programming problem, etc.).


    Manual input to the LCF will override the systemic calculation. The percentages in the LCF must be cleared to resume systemic calculation.

  5. See the chart below for defect rates and selection percentages. NRPS will select 100 percent for a particular TPNC until the year-to-date volume reviewed for that TPNC exceeds 50 notices.

    If the defect rate is... Then input... For a Selection Rate of...
    =0 or <6% 001 1%
    >6 and <7% 010 10%
    >7 and <8% 025 25%
    >8 and <10% 033 33%
    >10 and <12% 050 50%
    >12 and <14% 075 75%
    >14% 100 100%


    NRPS will stop selection based on TPNC when the threshold of 29,000 notices is reached, so that the remaining categories (Category G, Adjustment Notices and Category H, Condition Analysis) can be selected with the remaining 1,000. The remaining TPNC, partial DLN, and CP percentages requested via the LCF will not be selected. An LCF option exists that can raise the 30,000 limit to any number up to 50,000. Selection limits should not be raised above the 30,000 mark, unless requested or approved by Headquarters. Refer to the chart in Item (4) of IRM,Notice Selection Process.

  6. A priority option causes 100 percent of the notices containing a specific TPNC to be selected without regard to normal exception processing, i.e. previous CARE review ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . This is limited to 40 TPNCs. Other options control the Exception Override of Selection Keys 028/029 and TPNC 100 Document Charge-outs.

  7. The computer processing used to access this capability resides in IDRS. Three programs are used to update and maintain the NRPS Local Control File database.

  8. Adjust the LCF using CC NRP97. This IDRS command code allows sites to add, change, and delete requests on the LCF. The weekly deadline for making changes is determined by the running of NRP98. NRP98 is run on Friday afternoon. After the records are processed on International Business Machine (IBM), NRP99 is run to create a new LCF. NRP99 is run on Friday noon. Any data input on the LCF after NRP 98 is run and before NRP99 is run is overwritten by NRP99. To ensure requests are processed, you can start input Monday and stop input at 12:00 noon before the running of NRP98.  (01-01-2015)
LCF Overview

  1. Monitor the TPNC Trend List to assist in estimating notice fallout, and to provide feedback to ERS.

  2. Review the NRPS Notice Disposition Reports to determine TPNC error rates.


    Notices with an "E" disposition are not included when determining the defect/selection rate by NRPS.

  3. Review the latest NRP98/NRP99 Reports for:

    • Possible changes to selection criteria already on the LCF.

    • Possible re-enter of TINs and DLNs which are about to expire.

  4. Requests for notices by TIN will also include an optional entry of tax period. These requests will remain until the specific request is met or the user removes the request from the LCF.

  5. List the changes to be made to the LCF.

  6. Use CC NRP97 to input the changes to the LCF. See IRM 2.4.45, Command Code NRP97, for terminal input requirements of CC NRP97.

  7. When inputting LCF request to select notices by CP, sites can now indicate if the selection should bypass notices generated from ELF returns.

  8. Review the NRP98 report to check input data for accuracy. Correct any errors.

  9. The NRP 6130 report generates each week. This report lists every notice and transcript selected for review.

    Local Control File (LCF) Specifications
    Request Modification Use menu selections to edit existing requests
    Data Retention Requests are deleted from the LCF only under the following circumstances:
    ERS DLN and Full DLN Automatically deleted when selected by NRPS or after six weeks if not selected
    SSN with or without Tax Period Automatically deleted when selected by NRPS
    All others Must be manually deleted
    Selection Keys The LCF uses the following Selection Keys:
    090 — SSN Selection 094 — Full/Partial DLN Selection
    091 — ERS DLN Selection 095 — Penalty Code Selection
    092 — CP Number Selection 096 — Adjustment Reason Code Selection
    093 — Balance Due Amount Selection nnn — TPNC Selection
    Substitute Keys The LCF uses keys 085, 086, 087, 088, 089, and 099 as Substitute Selection Keys that may only be used to replace Selection Keys 090 through 096. TPNC, Exception Override, and normal criteria selections cannot be selected under a Substitute Selection Key


    NRPS normally selects Penalty code 01 and 02 requests under Key 095. If Substitute Key 085 is input on the request screen for Penalty Code 02, these selections will be made under Key 085 instead  (01-01-2015)
On-Line Notice Review (OLNR)

  1. The On-Line Notice Review (OLNR) System allows tax examiners to review notices, determine notice disposition, and retype notices on-line.

    1. Notices are reviewed "on-line" using a personal computer. However, OLNR does not change the procedures for reviewing notices established by the Notice Review Processing System (NRPS).

    2. Selected taxpayer notices are not printed until after the NRPS batches have been reviewed, and OLNR goes through its weekly "closeout" process (term used for end-of-cycle processing that controls notice printing). This allows the system to avoid printing notices that should be voided, and also allows full editing capabilities in case a notice needs correction prior to mailing.

    3. Notices that are not reviewed before cycle closeout will automatically default to the "NR" (Not Reviewed) disposition, and are then converted to the "P" (Print) disposition. This default provides a more correct notice accuracy rate, since only notices that are reviewed in a given cycle are compiled into notice accuracy numbers for reporting.

  2. The OLNR System also eliminates much of the manual work involved in the clerical support and tax examiner processes.

    1. Each computer running OLNR also has IDRS access, so that tax accounts can be corrected, if necessary, at the time of review of the notice.

    2. IDRS access helps by reducing the inventory of monitored cases.

    3. IDRS access helps provide quicker assistance to the taxpayer.

    4. The Notice Disposition Report generates automatically, rather than requiring manual preparation by Clerical Support Staff.

  3. The OLNR System creates the weekly Notice Disposition Report.

    1. Entering the applicable disposition code tells the system how to process the notice.

    2. At the end of each cycle, the disposition codes are applied to the notice files on the mainframe computer. The notice data is updated prior to printing.

    3. After the cycle is "closed out" , the system uses the disposition code data to create the Notice Disposition Report.  (01-01-2015)
OLNR Retype Enhancements

  1. The OLNR Retype Enhancement for IMF operates at all Campuses. The following are features/capabilities of the OLNR Retype Enhancement:

    1. Ability to correct entity on selected and associated notices excluding Spanish notices.

    2. Ability to correct data fields on most selected notices.

    3. Ability to select and insert TPNCs using a drop-down list. This list includes a free form TPNC 100 screen, and several dozen OLNR-specific TPNC 100s.

    4. Ability to add a label to selected, associated and manual intervention notices.

    5. Ability to correct entity fields on manual intervention notices, or void them.

    6. Ability to correct entity on CAF copies of notices, or void them (even if the primary notice is mailed).

    7. Ability to convert from one CP to another CP.


    For information on how to utilize the OLNR System, refer to the OLNR User Guide and Notice Review Job Aid 2534-002.  (01-01-2015)
OLNR Notice Conversions

  1. The OLNR system allows the user to convert from one CP Notice type to another, when adjustments to the account require a different type of notice.

  2. Almost all appropriate field values from the original notice will be transferred into the conversion notice, where they can then be adjusted by the examiner, if necessary.

  3. If any adjustment actions will be reflected in the converted notice, take appropriate action to prevent unnecessary adjustment notices.

  4. When converting to or from a Non-Compute notice (CP 51), special instructions apply with respect to the Pay-By Date field of OLNR. Follow instructions in IRM, Reviewing Non-Compute Notices.  (01-01-2015)
Notice Disposition Program and Notice Disposition Report

  1. Once inside a cycle of work in OLNR, and a batch is selected, the Notice Disposition screen is loaded and appears on the screen. It contains all of the sequence numbers for the selected batch. As each case in the batch is reviewed, the user selects the disposition code for the desired notice action.

  2. The Notice Disposition Program sends the selected disposition codes to the mainframe, and the data is used to compile the Notice Disposition Report. The disposition code entered for each notice will determine how the notice will be handled by the back-end printing programs.  (01-01-2015)
Notice Disposition Codes

  1. Description of the Notice Codes

    1. Entity-Only Change ("E" or "EI" Disposition): These notices require an Entity only change.

    2. Hold Notices ("H" Disposition): These notices are held (awaiting additional information or a response from the taxpayer) for processing in a subsequent cycle.

    3. Label Notices ("L" or "LI" Disposition): Labels are inserted on-line directly into the notice.

    4. Print Notices ("P" or "PI" Disposition): This disposition results in the printing of the notice without any changes.

    5. Retype Notices ("R" or "RI" Disposition): Any needed changes/corrections are made directly on-line by the tax examiner.


      For CP 67 Notice Recreate Transcripts, the "R" disposition is used solely for the purpose of converting the transcript into another notice.

    6. Voided Notices ("V" or "VI" Disposition): These notices are never printed.  (01-01-2015)
Notice Disposition Code Table

  1. The table explains the result of selecting each disposition code. The Notice Disposition program includes the "I" for refunds that have been prevented from generating so that this data can be reflected in the Notice Disposition report.

    Disposition Code Action
    "E" This disposition is entered when an entity only change is required
    "EI" This disposition is entered when the situations in "E" above exist, and the refund is prevented from generating
    "H" This disposition will cause the notice to be held for processing in a subsequent cycle. It is only entered when the review of the notice cannot be completed in the current cycle
    "L" This disposition allows the notice to be printed with the insertion of the user-selected label(s)



    Code "L" when the notice needs only a label added. If a notice requires additional changes other than a label, the "R" disposition should be used
    "LI" This disposition should be entered when the situations in "L" above exist, and the refund is prevented from generating
    "P" This disposition will cause the notice to be printed in its original condition. Code "P" is only used when the notice is correct
    "PI" This disposition is only entered when the notice is correct. It is printed, but the refund is prevented from generating
    "R" This disposition is used when the notice will be retyped. Code "R" should also be used when both an Entity change and a Label are needed
    "RI" This disposition is used when the notice will be retyped, and the refund is prevented from generating
    "V" This disposition will prevent the notice from being printed. It should be used when the notice is voided
    "VI" This disposition is used when the notice is voided, and the refund is prevented from generating  (01-01-2015)
Notices Held Beyond Current Cycle

  1. Every effort must be made to review, correct, and disposition notices in the current cycle to minimize negative impact to the taxpayer.


    Do not hold notices arbitrarily.

  2. In situations where a review of a specific notice cannot be completed before the end of the cycle, the notice should be held, and then released when the review can be completed.

  3. Input disposition code "H" to hold the notice for processing in a subsequent cycle. Examples that may cause the review of the notice to be delayed include:

    • Request for a voucher to validate a payment not found on Remittance Transaction Research (RTR) System

    • Request for documents from the taxpayer

  4. Notices should be worked as soon as the requested information or document(s) are received to minimize any further delay to the taxpayer.

  5. An OLNR "Held Notices Report" will be produced weekly to track the number of notices (by CP number) held beyond the cycle.


    A copy of the Held Notice Report should be forwarded to the Headquarters Notice Review Analyst by Monday, after cycle closeout.

  6. If a Balance Due notice is held beyond cycle, change the pay-by date to be consistent with the pay-by date of balance due notices generating in the cycle of the held notice's release. Recalculate the interest, penalties, and any other applicable fields.  (01-01-2015)
Notice Error File

  1. If a notice fails a validity check (OLNR Retypes), the notice is dropped from the back-end mainframe notice print processing and placed in the Notice Error File.

  2. The Notice Error File will contain information needed by Notice Review to manually retype the notice.

  3. The information will include:

    • A copy of the disposition record for the notice sequence number.

    • Retype data for the notice.

    • An additional record containing a brief description of the reason for rejection.

  4. The reports are sent via File Transfer Protocol (FTP) to the server and can be viewed and/or printed using Electronic Online Network System (EONS).

  5. The first line of the report contains the batch number, which should be used to locate the quick print of the original notice.

  6. Recreate the notice, by using the quick print and the retype data from the reports. Use the TC 971 AC264 method described in IRM, Notice Recreate Transcripts (CP 67).

  7. Use normal procedures for reviewing the notice. Begin the review as soon as possible to minimize any further delay to the taxpayer.  (01-01-2015)
Special Reviews

  1. Special reviews include:

    • Manual Intervention — Non-Selected Notices

    • Manual Intervention — Selected Notices

    • Requests to Stop Notices from Other Areas

    • Cases Controlled for Researching the Taxpayer's Account

    • Notice Recreate Transcripts (CP 67)  (01-01-2015)
Manual Intervention

  1. Perform manual intervention on selected and non-selected notices.

  2. Selected notices
    When reviewing each notice, determine whether the notice has a manual intervention indicator. If it does, enter a disposition code that will account for the manual intervention.

  3. Non-selected notices

    Manual Intervention Notices will appear in batches in the 9000 (9xxx) series. For notices that are not selectable, a disposition code of "E" should be applied to the notice, if changes are made to any of the entity screens. Entity fields will be updated during the print process.  (01-01-2015)
Manual Intervention List

  1. When certain conditions are present on a notice, it may require Manual Intervention before being printed. The Manual Intervention List is divided into four parts based on the MI Code. The following table describes the MI Codes:

    MI Code MI Code Description MI Code Explanation
    3 Blind Trust Taxpayer has Blind Trust
    4 Service Center (Campus) Address Service Center ZIP Codes
    5 No Doc Code 47 or 54 Adjustment notice with a DLN document code other than 47 or 54
    6 ES Tax Payment Discrepancy Summary of payments listed at bottom of notice does not agree with Total ES Tax Payment(s) amount on the notice
  2. If the notice is also selected by NRPS, the Manual Intervention information will be on the Package Contents page of the NRPS Package/Control D. If a Manual Intervention condition is present, the tax examiner must resolve it during the review.

  3. If the notice is not selected by NRPS, the notice (and the Manual Intervention condition) appears on the Manual Intervention List, and in Batches on OLNR beginning in the 9000 series (9xxx).

    1. The list shows one line for each notice, sorted by notice sequence number.

    2. Maximum of 25 to a batch.  (01-01-2015)
Blind Trust — Code 03

  1. Do not mail notices with a Blind Trust code to the taxpayer. Send them only to the taxpayer’s representative.

  2. Review notices to ensure representative’s address. If necessary, correct the address.  (01-01-2015)
Submission Processing Campus as Addressee — Code 04

  1. This code indicates that the ZIP code (73301, 93888, 64999, 45999, 84201 , and 19255) on the notice matches that of a Submission Processing Campus. Correct these notices.

    If a valid address is... And the SP Campus status is... Then...
    Available Any
    1. Select Disposition "E"

    2. Edit the correct address


    The notice should be voided if ENMOD includes an Identity Theft (IDT) indicator (TC 971 AC501)

    Not available 20, 56, or 58
    1. Use CC STAUPS to update the status to 51

    2. Void the notice

    other than 20, 56, or 58 Void the notice  (01-01-2015)
Adjustment Notices with a Doc Code Other Than 47 or 54 — Code 05

  1. In most cases, Adjustment notices will have a DLN Doc Code of "54" or "47" . If the DLN has a different Doc Code, the notice will appear on the Manual Intervention List with Code "05" .

  2. When working Code "05" cases, check for an existing MFT 31 account using CC IMFOLI. MFT 31 primarily involves Innocent Spouse accounts.  (01-01-2015)
ES Payment Balance Discrepancy — Code 06

  1. If the sum of the payments shown on an Estimated Tax (ES) Discrepancy notice does not match the Total ES Payment amount on the notice, the notice will appear on the Manual Intervention List with Code "06" .

  2. Retype the notice to show the correct payments and Total ES Payment amount. Add any missing original payments that correspond to the dishonored check.


    Do not remove Dishonored Check(s) from the notice, even if it is the only reason the ES discrepancy exists. The taxpayer needs to know why the ES discrepancy exists, and to which dishonored check any Bad Check Penalty (TC 280/286) is being applied.  (01-01-2015)
Requests to Stop Notices from Other Areas

  1. When another area requests that a NRPS-selected notice be stopped, Notice Review should query on the OLNR Web Page, using search disposition, to find the associated batch number. Only OLNR users with "Poweruser" , "QAReviewer" , "Reports" or "OLNRSA" permissions can access the OLNR Web Page.

  2. An OLNR system user with either "Poweruser" , "OLNRSA" or "QAReviewer" permissions will open the batch and enter the appropriate disposition code.

  3. The OLNR system cannot stop a non-select notice(s).  (01-01-2015)
Researching the Taxpayer's Account

  1. When researching a taxpayer's account that cannot be resolved during the review process, prepare adequate case documentation to allow resolution as quickly as possible upon completion of research.

  2. Since the NRPS Package/Control D only stays available for 30 days, documentation should include any data from NRPS that will not be available on IDRS. Establish a control base on IDRS immediately and if necessary, input CC STAUPS.

  3. Input disposition code "P" if the notice can be printed while the research is being completed.

  4. Input disposition code "H" if the notice cannot be printed until the research is completed.  (01-01-2015)
Notice Recreate Transcripts (CP 67)

  1. There are some situations which require a notice to be built or recreated:

    • A notice record contains bad data which prevents it from properly passing through the OLNR system.

    • A notice was voided in error, when it should have been released in cycle.

    • An incorrect notice was released, and a corrected notice must be sent in its place, with the apology label inserted. See IRM,Label 13

    • A notice may be needed when there is no other notice or transcript generating in the system.

  2. When a notice record contains bad data as described in Item (1) above, the notice record gets "dumped" , and the Headquarters Analyst contacts the affected site to have the notice recreated.

  3. Use the following instructions to generate the CP 67 Notice Recreate Transcript.


    If creating a balance due notice from the CP 67, input CC STAUPS for six cycles.

    1. Input CC REQ77

    2. Input 971 in the "TRANS-FIELD" of the FRM77 response screen.

    3. Enter the Return Received Date from the "RET-RECD-DT" field of TXMOD in the "TRANS-DT>" field.

    4. In the "TC 971–CD>" field, enter Action Code (AC) 264.

    5. In the "Remarks" field, enter "CP 67 to CP xx" .


      Retain the taxpayer information for use in locating the correct transcript in the "000000" batch.


      Be sure to set a calendar reminder as to when the CP 67 will post. If the CP 67 cycle closes out without the transcript being converted to a notice, the transcript data will be lost and another TC 971 must be input to start the process over.

  4. When the TC 971 AC264 posts, a CP 67 Notice Recreate Transcript will generate.

  5. All CP 67 transcripts appear in the batch numbered with all zeroes (000000) for any given cycle, and are considered Manual Intervention cases.

  6. The CP 67 must be converted to another notice prior to cycle closeout. If the transcript is not converted to a notice prior to cycle closeout, the opportunity is lost and another TC 971 AC264 must be input to create another CP 67.

  7. Create the new notice by selecting the "R" disposition in OLNR, and when the entity data appears: use the "Change" button feature for Notice Type to change the CP 67 to the desired CP.

  8. Be careful to include all necessary items, such as TPNC(s), Label(s), Pay-by date, etc. Double check the Entity tab information for accuracy.

  9. AMS will systemically generate a TC 971 AC264 upon selection of the Suspense Action "Convert Transcript to Notice" . The notice will be in the OLNR inventory in the next cycle.  (01-01-2015)
Clerical Support Procedures

  1. This section provides procedures for the Clerical Support staff within the Notice Review Function.

  2. The Clerical Support staff provides a variety of services critical to the NRPS and AMS processes. These services assist Notice Review tax examiners (and other customers) in providing accurate information to the taxpayer. The Clerical Support staff:

    1. Associates tax returns needed to review selected notices.

    2. Distributes NRPS Package/Control D and related documents.

    3. Corrects erroneous, misprinted, and undeliverable notices.

    4. Maintains records on taxpayer notices.

    5. Enters Priority Refund Transcript closing or suspense actions when AMS has been down for 4 hours or more and tax examiners have been instructed to work Priority Refund Transcript inventory manually.  (01-01-2015)
Clerical Priorities

  1. This subsection provides instructions on prioritizing duties performed by the Clerical Support staff. These include:

    1. Inputting Priority Refund Transcript closing or suspense actions into the AMS system (when AMS has been down for 4 hours or more). See IRM, Inputting Priority Refund Transcript Closing or Suspense Actions.

    2. Associating tax returns and other documents from Files. See IRM, Associating Documents from Files

    3. Establishing priority of review. See IRM, Establishing Priority of Review  (01-01-2015)
Inputting Priority Refund Transcript Closing or Suspense Actions

  1. In the event AMS is down for 4 hours or more, tax examiners will manually work the Priority Refund Transcripts using a listing available on Control D. TEs will indicate the manual action they performed on IDRS for each case on the NR Manual Action Sheet.

  2. Clerks will use the NR Manual Action Sheet to search for the correct refund transcript. Searches can be executed on the TIN, Transcript Type, Dollar Amount Range, or date to locate the correct case.

  3. Clerks should ensure each case is assigned to the correct tax examiner and the closing or suspense actions are input accurately in order to remove each case from the AMS unassigned queue.  (01-01-2015)
Associating Documents from Files

  1. Document Charge-outs and a Batch Return Request List generate weekly. Note the following:

    1. The Files Function uses these forms to pull returns needed to review notices. Returns are routed in batch order (per the Batch Return Request List) to the Notice Review Function.

    2. The Clerical Support staff associates the Batch Return Request List and the attached returns with the corresponding NRPS batch sheets.

  2. Route the NRPS batch sheets that do not need documents directly to the tax examiners.

  3. Associate all necessary documents (adjustment documents and tax returns) with each batch before releasing to the tax examiners.  (01-01-2015)
Establishing Priority of Review

  1. Error Resolution System (ERS) may request the Notice Review Function to select and correct a specific notice:

    1. ERS tax examiners must prepare Form 3465, Adjustment Request, and send it with the return to the Notice Review Function.

    2. Use LCF Key 091 to select the notice for review by DLN. Use full DLN for high priority review, and partial DLN for low priority review.

    3. The Clerical Support staff must associate the return and Form 3465 with the NRPS batch and release the case to the tax examiner.

  2. The Clerical Support staff must distribute the work in this order:

    1. Selected Overpayment Notices — tax examiners must complete review prior to the predetermined cutoff for TC 570 (CP Notice hold TC 570 with blocking series "55555" and a credit balance), which is 6:00 pm (local time) each Wednesday. If the cut-off time for TC 570 is missed, use NOREFP until 10pm (eastern time) on Thursday. Consider prior cycle error rates of individual CP Notices and selection keys to ensure that the greatest number of incorrect refunds are prevented from generating.


      Treat notices selected by Key 002 as an overpayment notice, because a current cycle refund in another tax period is the reason for the review.  (01-01-2015)
Notice Corrections

  1. Work 100 percent of the Manual Intervention notices (some may be assigned to the Clerical Support Staff), using OLNR, prior to the cycle closeout.

  2. Manual Intervention (MI) notices will be contained in OLNR mainly under batch numbers in the 9000-series (9xxx).


    The CP 67 Notice Recreate Transcript will be contained in Batch "000000" .

  3. Notices received after the notice date should be corrected as they are received. These include:

    • Undeliverable Notices

    • Torn/Mutilated Notices

    • Reporting Agents Files (RAF) Notices received back from the print sites as incomplete/unaddressed.

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