3.21.263  IRS Individual Taxpayer Identification Number (ITIN) Real-Time System (RTS)

Manual Transmittal

October 24, 2014

Purpose

(1) This transmits revised IRM 3.21.263, International Returns and Document Analysis, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS).

Scope

This IRM provides procedures for processing Form W-7, Application for IRS Individual Taxpayer Identification Number and its supporting identification and exception documentation using the ITIN Real Time System.

Material Changes

(1) Editorial changes have been made throughout this IRM. Web site addresses, references to CP notices, hyper links, legal references, and IRM references were reviewed and edited as necessary.

(2) IPU 14U1087 issued 07-01-2014 IRM 3.21.263.1(5) "Note" about ITINs expiring in 5 years was deleted.

(3) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.3.2(3) and (5) deleted Form 14194 and added a "Note" clarifying that Form W-7 (COA) with all required entries is considered a valid Certificate of Accuracy.

(4) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.3.2(7) deleted information about CAAs completing the "For IRS Use Only" box.

(5) IPU 14U1122 issued 07-09-2014 IRM 3.21.263.4.2(1) deleted the "NOTE" and incorporated it in the opening statement in the paragraph.

(6) IRM 3.21.263.4.3(1d) revised 01-01-2015 to correct hyper links and to remove India.

(7) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.4(4) added hyper links to Exhibits 12 and 51.

(8) IRM 3.21.263.4.5 revised 01-01-2015 to remove the word "temporary " from the title and definition of an IRSN and to correct the definition of an IRSN.

(9) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.4.6(1) revised the list to make Acceptance Agents into a "Caution" under the CAA bullet and the exception for foreign consuls into a separate bullet item with a hyper link.

(10) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(11) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.4.6(2) Note, deleted note about ITINs assigned per approved extensions for tax year 2011 being valid for only one year.

(12) IPU 14U0199 issued 01-28-2014 IRM 3.21.263.4.8.1(2) deleted "notarized " from S 03 definition.

(13) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.4.8.3(2) expanded definition of HR 1 and deleted references to exhibits and IRM references since removed.

(14) IRM 3.21.263.4.10(1) revised 01-01-2015 to revise the definition of the Taxpayer Advocate Service.

(15) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2 revised entire subsection on Clerical Instructions; Subsections were renumbered where appropriate.

(16) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1 changed title to" RCO Batching Function" ; added instructions for RCO Extraction.

(17) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1.1 changed title to" Processing of Remittance Mail" ; revised paragraph (2); previously numbered 3.21.263.5.2.2.2.

(18) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1.2; previously numbered 3.21.263.5.2.3.

(19) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1.3 changed title to "Preparation of Batch for Technical Review;" Added instructions for "RCO ITIN Batching Function" ; previously numbered 3.21.263.5.2.4

(20) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1.4 revised instructions for work received in batching area. Previously numbered IRM 3.21.263.5.2.4.1

(21) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.1.5 changed title to "Batching Process;" revised instructions for batching work for TE review. Previously numbered IRM 3.21.263.5.2.4.2

(22) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.2 added paragraph (1), renumbered subsequent paragraphs. Previously numbered IRM 3.21.263.5.2.5

(23) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3 added instructions for "ITIN Operations Clerical Function" .

(24) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.1, added title and instructions for "Control of Work Received."

(25) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.2 added title and instructions for "Batching Function" .

(26) IRM 3.21.263.5.2.3.3 revised 01-01-2015 to replace "HUB" with shipping and receiving area.

(27) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.3 added title and instructions for "Runner and Hub Duties" .

(28) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.4 changed title to "Handling of Batch Cart After Technical Review." Previously numbered IRM 3.21.263.5.2.6.

(29) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.5, previously numbered IRM 3.21.263.5.2.6.1.

(30) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.6 changed title to "Stripping Process" ; revised instructions for stripping process. Previously numbered 3.21.263.5.2.6.2

(31) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.5.2.3.7(2) deleted Hard Reject CP 574 (flagged) and instructions.

(32) IRM 3.21.263.5.2.3.7(3) revised 01-01-2015 to replace Form 3471 with Form 3471E.

(33) IPU 14U1078 issued 06-30-2014 IRM 3.21.263.5.2.3.7(3)(4) revised instruction for processing R 99 status cases.

(34) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.7 added paragraphs (3), (4) and (5); previously numbered 3.21.263.5.2.6.2.1

(35) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.8 changed title to "Additional Stripping Guidelines" ; revised instructions to ensure the address is correct. This was previously numbered 3.21.263.5.2.6.2.2.

(36) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.2.3.8(1) revised procedures to include an "Exception" for processing "Family Pack ID" .

(37) IRM 3.21.263.5.2.3.8(2) revised 01-01-2015 to instruct to send Form 2848 per the Local Routing Guide.

(38) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.9 changed title to "Sorting" ; Revised instructions for sorting completed work prior to being released; previously numbered 3.21.263.5.2.6.3.

(39) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.10 changed title to "Statute Return Processing;" previously numbered 3.21.263.5.2.6.4.

(40) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.11, changed title to "Release of Work" ; previously numbered 3.21.263.5.2.6.5.

(41) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.12, revised instructions for work to be routed to AUSPC; previously numbered 3.21.263.5.2.6.5.1

(42) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.13 changed title to "Cycle Control Unit (CCU) Tower;" revised instructions for the File folders and Suspense folders. This was previously numbered 3.21.263.5.2.6.5.2.

(43) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.14 changed title to "Special Handling of Office of Foreign Asset Control (OFAC) Status;" previously numbered 3.21.263.5.2.7.

(44) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.15 changed title to "Control of Form W-7 Suspense Wall " . This was previously numbered 3.21.263.5.2.8.

(45) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.5.2.3.15(3) deleted instructions for Letter 4939.

(46) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.16 renumbered 3.21.263.5.2.8.1.

(47) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.17 revised instructions for pulling work from the Suspense wall. Previously numbered 3.21.263.5.2.8.2.

(48) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.18 changed title to "Reject Status 98 Flagged 65 Day Purge, Reject Report and Form 4442;" revised instructions for paragraph (2); previously numbered 3.21.263.5.2.9.

(49) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.19 changed title to "Maintaining Original Supporting Identification Documentation" ; previously numbered 3.21.263.5.2.10.

(50) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.2.3.20 changed title to "Undeliverable Mail;" removed paragraph (2) and paragraph (3); renumbered subsequent paragraphs; previously numbered 3.21.263.5.2.11.

(51) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.2.8.2(1) revised sentence to delete Letter 4939 received.

(52) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.2.9(3) deleted paragraph 3.

(53) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.2.9(5) revised paragraph to remove wording (for other than Letter 4939).

(54) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.5.3.1(5) added a note to use common abbreviations/acronyms with hyper link to Exhibit 51.

(55) IPU 14U1275 issued 08-20-2014 IRM 3.21.263.5.3.2(2) reformatted to add hyper link to ASED and RSED ; reformatted paragraphs 7, 8, 9 & 10 so they are after paragraph 2., and expanded paragraphs 12 and 13.

(56) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.5.3.2(6) deleted references to Letter 4939.

(57) IPU 14U1078 issued 06-30-2014 IRM 3.21.263.5.3.2(10) added" CAUTION" when processing amended return received with Form W-7 application.

(58) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.2(11) and (15) added APO, FPO, and DPO address as indications of a military personnel on a foreign base; added new paragraph for processing Forms 4868, 1040ES and 1040ES-NR.

(59) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.3.2(13) and (15) added "If and Then" chart and changed (15) to bullets.

(60) IPU 14U1122 issued 07-09-2014 IRM 3.21.263.5.3.4.2(1) reformatted tests that the supporting identification documents must meet before entering the Form W-7 to the ITIN RTS.

(61) IRM 3.21.263.5.3.4.2(2) revised 01-01-2015 to state applicants under age 18 must submit a birth certificate (unless submitting a passport) along with another acceptable document.

(62) IPU 14U1315 issued 09-02-2014 IRM 3.21.263.5.3.4.2(2) reformatted to clarify Form W-7 ID required for applicants under age 18.

(63) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.5.3.4.2(2) reformatted the "Note" to include a hyper link to the definition of valid COAs.

(64) IPU 14U1315 issued 09-02-2014 IRM 3.21.263.5.3.4.2(3) "Civil Birth Certificate" revised" Note" to include instruction for situations when civil unrest in the country of birth prevents applicant from securing birth certificate.

(65) IRM 3.21.263.5.3.4.2(3) "Medical Records" revised on 01-01-2015 to remove India as a country not requiring a DOE or U.S. medical record.

(66) IPU 14U1122 issued 07-09-2014 IRM 3.21.263.5.3.4.2(3) "Medical Record" reformatted and made into a "NOTE" of the existing statement that medical records are acceptable ONLY for dependents under age 6 years old, revised definition of medical record, and reformatted school records definition.

(67) IRM 3.21.263.5.3.4.2(3) "School Records" revised on 01-01-2015 to remove India as a country not requiring a DOE or U.S. school record.

(68) IPU 14U1187 issued 07-25-2014 IRM 3.21.263.5.3.4.2(3) "School Records" added a "NOTE" for determining when applicant is under age 6.

(69) IPU 14U0983 issued 06-10-2014 IRM 3.21.263.5.3.4.2(3) "School Records" clarified school records and applicants under age 6.

(70) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2(3) "School Records," added that address is considered complete if it has the facility name, city, and state.

(71) IPU 14U1315 issued 09-02-2014 IRM 3.21.263.5.3.4.2(3) "Visas" revised to correct hyper links.

(72) IPU 14U1153 issued 07-17-2014 IRM 3.21.263.5.3.4.2(3) "Visa " added information about Canadian visas.

(73) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2(3) "Visa" added exception for Canada.

(74) IPU 14U1315 issued 09-02-2014 IRM 3.21.263.5.3.4.2(4) deleted entire paragraph for ID for children and moved the"Exception" to IRM 3.21.263.5.3.4.2(3) "Civil Birth Certificate" " Note" .

(75) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(76) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(77) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2(21) added "identification" to the words documents/documentation and deleted the bullet about CAAs coding the "For IRS Use Only " box.

(78) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2.1(3)" Original" added instructions for reason code "f" with a return attached.

(79) IPU 14U0172 issued 01-23-2014 IRM 3.21.263.5.3.4.2.1(3) reformatted into separate paragraphs for original, certified and notarized ID; added paragraph for copies of documents certified by the issuing agency.

(80) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(81) IPU 14U1191 issued 07-28-2014 IRM 3.21.263.5.3.4.2.2(1) added "EXCEPTION" ," CAUTION" and "NOTE" to clarify types of supporting documents defined as current without expiration date.

(82) IPU 14U1101 issued 07-03-2014 IRM 3.21.263.5.3.4.2.2(1) and (5) revised instructions for determining whether certain supporting documents without expiration dates are considered current (not expired).

(83) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2.2(5) "School Record" revised definition of current for a school record.

(84) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2.3(1) removed Letter 4939 bullet.

(85) IPU 14U1153 issued 07-17-2014 IRM 3.21.263.5.3.4.2.3(3) added a" NOTE" emphasizing applicant data other than name and address should not be visible in the window envelope.

(86) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.3.4.2.4(1) reformatted the "Note" to remove the phrase "for example" and quotation marks in the examples of entries in RTS remark screen.

(87) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.4.2.4(1) and (2) removed Letter 4939 references.

(88) IPU 14U1153 issued 07-17-2014 IRM 3.21.263.5.3.4.2.4(1), (2), (3), (4) and (5) moved "Exception" in paragraph (1) that stated only original and certified copies from the issuing agency are returned to the applicant to paragraph (2), switched order of paragraphs 3 and 4, instructed when to edit the ITIN mailing address as the return address, and referred to new exhibit for Form 14433.

(89) IRM 3.21.263.5.3.4.2.5 revised 01-01-2015 to create new section for maintaining supporting identification documents.

(90) IPU 14U0616 issued 04-03-2014 IRM 3.21.263.5.3.4.3(3) revised the "Note" to emphasize when the document is valid and invalid.

(91) IPU 14U1153 issued 07-17-2014 IRM 3.21.263.5.3.5.1(1) deleted Certifying Acceptance Agent as someone who completes the "For IRS Use Only " box.

(92) IRM 3.21.263.5.3.5.2(5)"Exception" revised 01-01-2015 to remove instructions to correct the reason for filing boxes.

(93) IPU 14U1187 issued 07-25-2014 IRM 3.21.263.5.3.5.2(5) added "Form 1040NR" to the list of valid returns under the exception.

(94) IRM 3.21.263.5.3.5.2(6) revised 01-01-2015 to delete the entire "When to Edit Reason Box " column in the table.

(95) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.2(6) Reason Box "a" instructions were revised and revised the "Caution" to emphasize any applications with an attached return should not be processed as SEVIS regardless of the documentation provided.

(96) IRM 3.21.263.5.3.5.2(6),added "Caution" for Reason Box "a " for SEVIS or exception documentation.

(97) IPU 14U1206 issued 08-04-2014 IRM 3.21.263.5.3.5.2(6) Reason Box "b " changed "1040NR" to "1040" , deleted instructions for changing reason box "c" to" b." , and deleted instructions to change reason box "f."

(98) IPU 14U0895 issued 05-21-2014 IRM 3.21.263.5.3.5.2(6) Reason Boxes "b" , "c" , "d," and "f" were revised to include when they could be changed.

(99) IRM 3.21.263.5.3.5.2(6) Reason Box "d " revised on 01-01-2015 to remove India as a country not requiring a DOE.

(100) IPU 14U0199 issued 01-28-2014 IRM 3.21.263.5.3.5.2(6) Reason Boxes "f " and "g" removed countries from lists not requiring a visa and passport.

(101) IRM 3.21.263.5.3.5.2(6), Added "Reminder" under Reason Box "f."

(102) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.2(6) Reason Box "g" instructions were revised.

(103) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.3.5.2(8) and (9) added exception for exception 1 pension/annuities income to paragraph 8 and removed it from paragraph 9.

(104) IRM 3.21.263.5.3.5.2(9) "Reason for Applying 2a " revised 01-01-2015 to add exception that SSA denial letter is not required if applicant has not entered the U.S.

(105) IRM 3.21.263.5.3.5.2(9) "Reason for Applying 2b" revised 01-01-2015 clarified SEVIS applications with returns do not meet SEVIS criteria.

(106) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.3.5.2(9) revised editing instructions for exception 2d Gambling Income/Winnings.

(107) IRM 3.21.263.5.3.5.2(9) , added "Reminder" about reason for filing boxes "a" and "h " as well as "a" and" f." ; updated "Other" to "Letter from Education Institute" throughout; deleted "Caution" about researching RTS to see if return submitted previously with rejected Form W-7; added "Note" instructing when to change reason for applying "a" to "b." .

(108) IPU 14U0584 issued 03-28-2014 IRM 3.21.263.5.3.5.2(9) removed link in "Note" in 2b.

(109) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.3(3) and (4) reformatted the instructions for determining last name to enter on Line 1a, added a "NOTE" about perfecting the name, and added an example.

(110) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.4(1) revised instruction to state the birth certificate is the authority when present and added instructions for when a birth certificate is not present.

(111) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.6(5) reformatted instructions for determining the country where the applicant last resided.

(112) IPU 14U1130 issued 07-10-2014 IRM 3.21.263.5.3.5.7(1) and (2) and (3) added "city and state or province (optional)" for line 4 and a "NOTE" with instructions when all DOB fields are zeros.

(113) IPU 14U0538 issued 03-21-2014 IRM 3.21.263.5.3.5.7(7) added "If, Then " column to leave DOB field blank if all zeros are present in MM, DD or YYYY field.

(114) IRM 3.21.263.5.3.5.13(3) revised on 01-01-2015 to add reason box "e" to the list requiring a DOE; also revised the "Exception" to remove India as country not requiring a DOE when the applicant is resident of India, added "Military Overseas" as not requiring a DOE, and removed the exception for box "e" .

(115) IPU 14U1296 issued 08-28-2014 IRM 3.21.263.5.3.5.16(1) instructed to indicate stamped signature is not acceptable.

(116) IPU 14U1275 issued 08-20-2014 IRM 3.21.263.5.3.5.16(1) reformatted to clarify acceptable signatures and added EXCEPTION for gaming officials.

(117) IRM 3.21.263.5.3.5.17 (3), (5), (6), and (8) revised 01-01-2015 to add hyper link to Exhibit 13, added a note that the electronic signed, printed, or stamped signatures are not acceptable, changed OPR to IRS, and corrected line 9 to line 7.

(118) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.3.5.17(13) reformatted Remarks field entry to remove the quotation marks and replace it with "such as."

(119) IPU 14U1087 issued 07-01-2014 IRM 3.21.263.5.3.5.21 "Potential Reapplication" section was deleted.

(120) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.3.5.21 added new subsection on Potential Reapplication

(121) IPU 14U1087 issued 07-01-2014 IRM 3.21.263.5.3.5.21.1 "Potential Reapplication Process " section was deleted.

(122) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.3.5.21.1 added new subsection on Potential Reapplication Process

(123) IPU 14U1010 issued 06-16-2014 IRM 3.21.263.5.4.1(2) clarified which countries do not require a visa for entry to the U.S.

(124) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.5.4.1(4) reformatted "Caution " to include a hyper link to the ASED and RSED determination IRM section.

(125) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.4.1(6) replaced "for example" with "such as" throughout.

(126) IPU 14U1078 issued 06-30-2014 IRM 3.21.263.5.4.1(6) revised the paragraph for processing W-7 for primary/secondary rejects.

(127) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(128) IRM 3.21.263.5.4.1(8) removed old return processing information that was replaced in IPU 13U1521

(129) IPU 14U0638 issued 04-04-2014 IRM 3.21.263.5.4.1(8) added Form 1040A to the exception.

(130) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.5.4.1(10) reformatted procedures to include instructions for determining when a statute year return has been cleared by the Statute Unit.

(131) IRM 3.21.263.5.4.1(13) revised 01-01-2015 instructed to edit the check copy when applicant does not validate their identity and return is not being processed.

(132) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.4.1(14) added instructions for check copies for applicants with Form W-7 rejected for not satisfying S 50.

(133) IPU 14U1279 issued 08-21-2014 IRM 3.21.263.5.4.2(3) reformatted criteria for identifying potential duplicates to include "CAUTION" , "NOTE " and "REMINDER " .with additional steps.

(134) IPU 14U1045 issued 06-24-2014 IRM 3.21.263.5.4.2(4) revised/ clarified instructions for "If/Then Chart."

(135) IPU 14U0140 issued 01-16-2014 IRM 3.21.263.5.6 renamed and revised section to include only instructions for Quality Review staff.

(136) IPU 14U0140 issued 01-16-2014 IRM 3.21.263.5.6.1 created new section for work reviewed by Quality Review and included intructions for correcting RTS input made within 3 days of the initial Form W-7 input.

(137) IPU 14U1275 issued 08-20-2014 IRM 3.21.263.6.1.25(1) reformatted to clarify acceptable signatures.

(138) IPU 14U0140 issued 01-16-2014 IRM 3.21.263.5.6.2 created separate section for Secondary Review Team.

(139) IPU 14U0920 issued 05-27-2014 IRM 3.21.263.5.6.2.1 created new section titled" Multiple Address Report" .

(140) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.7(1) revised instructions regarding Form 4442 requesting Revocation of ITIN as a result of a completed merge action.

(141) IPU 14U1206 issued 08-04-2014 IRM 3.21.263.5.7(3) revised instructions for flagging applications when merge actions are needed.

(142) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.7.1 revised instructions for Lead on Merge Action Procedures.

(143) IRM 3.21.263.5.8.4(1) Exception revised 01-01-2015 to remove instructions to tell the CAA to call the IPS.

(144) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.5.8.4(7) deleted instructions for HR 1 Letter 4939 processing.

(145) IRM 3.21.263.5.9.2(8) changed "Remarks Field" to "Comments Section" .

(146) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.9.7(1) reformatted instructions to replace "for example" in RTS remarks field with "such as" and deleted quotation marks.

(147) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.9.7 deleted entire section.

(148) IPU 14U0766 issued 04-24-2014 IRM 3.21.263.5.10.3 added new example for inappropriate Form 4442 requests.

(149) IRM 3.21.263.5.10.4 revised on 01-01-2015 throughout to resend undeliverable notices only when have label with new address and expanded undeliverable instructions for returned ID.

(150) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.10.4(10) reformatted instructions to remove quotation marks from "UND" in RTS remarks field and replace with "entries such as UND" .

(151) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.10.4(10) deleted Letter 4939 instructions.

(152) IRM 3.21.263.5.10.4 revised instructions for processing CP 566 when primary/secondary application suspends.

(153) IPU 14U1045 issued 06-24-2014 IRM 3.21.263.5.10.4 added instructions for classifying document.

(154) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.10.4(12) revised "Note" and added hyper link to the document code exhibit.

(155) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.10.5(3) and (6) added Caution to paragraph three for request address change. and renumbered paragraph six to add chart in reference to address change request in paragraph three.

(156) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.10.5(5) & (8) & (9) reformatted instruction to replace Form 4939 with CP 566, removed quotation marks from RTS remark filed entry and deleted editing instruction for Form W-7.

(157) IPU 14U0584 issued 03-28-2014 IRM 3.21.263.5.10.6 changed 2013 to CY in second bullet and first Note.

(158) IRM 3.21.263.5.10.6(3) & (4) & (5) revised 01-01-2015 to replace Form 3471 with Form 3471E.

(159) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.5.10.7 added new section for the Patterns and Trends Identification Desk.IPU 14U0444 issued 03-06-2014 IRM 3.21.263.5.10.8(3) and (5) revised paragraph 3 to delete sentence for considering W-7 sent in response to Letter 4939 in Reminder. Revised second example in paragraph five for old address.

(160) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.5.10.8(5) & (8) &(12) reformatted to remove quotation marks from RTS remarks field entry and added "such as" .

(161) IPU 14U1078 issued 06-30-2014 IRM 3.21.263.5.10.8(6) (7) and (8) revised instructions for CP 566 suspense code S 50; and renumbered paragraph 12 and paragraph 13.

(162) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.5.10.8(16) deleted references to HR 1 Letter 4939.

(163) IPU 14U0481 issued 03-13-2014 IRM 3.21.263.5.10.8(17) revised to process address change request when applicant respond to IRS notice.

(164) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.5.10.8(18) revised to include a "Reminder" for recording actions taken on Form 4442.

(165) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.6(3) changed hyper link to new IRM reference.

(166) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.6(4) advised tax attaché employees will learn of IRM updates on SERP.

(167) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.6.1(2) revised instructions for responses to suspense notices.

(168) IPU 14U0390 issued 02-27-2014 IRM 3.21.263.6.1.10(1) added "tax attaché" as a required entry for the For IRS Use Only box.

(169) IPU 14U1010 issued 06-16-2014 IRM 3.21.263.6.1.24(2) clarified which countries do not need a visa to enter the U.S.

(170) IRM 3.21.263.6.1.25(1) revised 01-01-2015 to say that stamped signatures are not acceptable.

(171) IPU 14U1375 issued 08-20-14 IRM 3.21.263.6.1.25(1) added that faxed, photocopied, and electronic signatures are not acceptable.

(172) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.6.1.30(2) deleted reference to Letter 4939.

(173) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.6.1.30(2) added note with hyper link to Exhibit 51 for common RTS acronyms.

(174) IPU 14U0814 issued 05-05-2014 IRM 3.21.263.6.1.30(3) expanded Form 4442 procedures.

(175) IPU 14U0851 issued 05-12-2014 IRM 3.21.263.6.1.32.2(2) added instructions for authenticating TAC offices.

(176) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.6.1.32.4(3) deleted paragraph about Letter 4939.

(177) IPU 14U0814 issued 05-05-2014 IRM 3.21.263.6.1.34(2) revised hyper link from Figure 26 to Exhibit 52. Figure 3.21.263-26, Required Entries for Form 4442, Inquiry Referral, was deleted and replaced with Exhibit 3.21.263-52.

(178) IRM 3.21.263.6.1.34(6) revised 01-01-2015 to change the ITIN FAX number to 855-854-8381 and 855-854-8382.

(179) IRM 3.21.263.6.1.35(3) revised 01-01-2015 to change the ITIN FAX number to 855-854-8381 and 855-854-8382.

(180) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.6.1.35(3) changed the ITIN FAX telephone number.

(181) IPU 14U0814 issued 05-05-2014 IRM 3.21.263.7.2(1) added item 24 as required entry for OFAC Form 4442, hyper links to Exhibit 52, and requirement to write MDR across top of Form 4442 for Missing Document Requests..

(182) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.7.2(1) added hyper link to Exhibit 51, RTS Acronyms.

(183) IPU 14U0944 issued 06-02-2014 IRM 3.21.263.7.2(2) deleted references to Letter 4939.

(184) IRM 3.21.263.7.2(4) revised 01-01-2015 to say advise the applicant to allow 8-10 weeks for processing time when filed from abroad or during peak filing season.

(185) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.7.2.4(3) deleted paragraph about Letter 4939.

(186) IPU 14U0895 issued 05-21-2014 IRM 3.21.263.7.4(2) deleted example of merge action not required for spouse or dependent ITINs.

(187) IPU 14U0814 issued 05-05-2014 IRM 3.21.263.7.5(1), and (3) clarified that merge actions must be posted and changed hyper links from Figure 26 to Exhibit 52.

(188) IRM 3.21.263.7.5(4) revised 01-01-2015 to change the ITIN FAX number to 855-854-8381 and 855-854-8382.

(189) IPU 14U0444 issued 03-06-2014 IRM 3.21.263.8.3.1 added primary or secondary to Comment section

(190) IPU 14U0390 issued 02-27-2014 IRM 3.21.263.8.3.1 "Is the name on the W-2 the Same on the Tax Return?" changed "applicant" to" primary or secondary applicant" for only source of income or credit shown on the return does not match.

(191) IPU 14U1279 issued 08-21-2014 IRM 3.21.263.8.3.1(3) reformatted content in W-7 Year in the Preliminary W-7 Application Data Screen to replace specific years selection with a drop-down box.

(192) IPU 14U1329 issued 09-04-2014 IRM 3.21.263.8.3.1(3) "Submission Source" revised to change "AA" to "AA/CAA" in determining who receives ITIN related correspondence/notice also added a "Note" about how to determine if the Form W-7 is submitted by CAA or AA.

(193) IPU 14U0390 issued 02-27-2014 IRM 3.21.263.8.3.1(3) "Submission Source" , revised processing for AA origin and added "tax attache received date stamp" to definition of IRS office origin.

(194) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.8.3.1(3) "Submission Source" deleted "Note" for COA attached (under Certified Acceptance Agent).

(195) IPU 14U1329 issued 09-04-2014 IRM 3.21.263.8.3.1(3) "W-2 Attached?" reformatted to identify proof of income documents required to be attached to the return; also reformatted "IRS Received Date" to specify the date to input when received date is missing on Form W-7.

(196) IPU 14U1329 issued 09-04-2014 IRM 3.21.263.8.3.1(3) "Is the name on the W-2 the Same on the Tax Return" reformatted to require the name on the Form W-2 match the primary or secondary name on the attached return; also reformatted "Tax Return Year" to delete the reminder and updated the years in the tax return examples

(197) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.1(1) "Does Applicant Name Match Documentation?" deleted "Note" to not enter the ID if not for the applicant.

(198) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.1(1) "Document Type " instructed to list additional original or copies of ID certified by the issuing agency in the Remarks Screen.

(199) IPU 14U1122 issued 07-09-2014 IRM 3.21.263.8.3.2.1(1) " Document Type" added to record at least 2 pieces of ID submitted by the applicant and to record additional valid supporting ID in the Remarks Field.

(200) IPU 14U0895 issued 05-21-2014 IRM 3.21.263.8.3.2.1(1) "Document Type" Note revised definition of supporting documents.

(201) IPU 14U0799 issued 05-01-2014 IRM 3.21.263.8.3.2.1 (1) "Document Type" , "ID Certification," "Document Expiration Date" , "Visa ID Number," "Visa Expiration Date" revised instructions.

(202) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.8.3.2.1(1)" ID Certification" ,provided instructions for Form W-7 with returns and SEVIS forms but only copies of ID.

(203) IRM 3.21.263.8.3.2.1(1) "ID Certification" added select "certified by issuing agency" when foreign ID is certified by U.S. consul or embassy employees and select "CAA reviewed" if SEVIS application also has Certificate of Accuracy (COA) attached.

(204) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.1 "Is the ID Valid? " added a note to accept visas listed in certified passports, deleted the caution about valid ID with expired dates, and deleted India for school/medical records.

(205) IPU 14U1101 issued 07-03-2014 IRM 3.21.263.8.3.2.1(1)" Is the ID Valid?" revised instructions for when to select "Yes, Viewed documents" when no questionable features are identified but ID has no expiration date.

(206) IPU 14U0983 issued 06-10-2014 IRM 3.21.263.8.3.2.1(1)" Is the ID Valid?" deleted example of a nursery school letter.

(207) IPU 14U0851 issued 05-12-2014 IRM 3.21.263.8.3.2.1(1)" Is the ID Valid?" revised instructions for when to select "No, Viewed documents" for school/medical records not from the U.S.

(208) IPU 14U1191 issued 07-28-2014 IRM 3.21.263.8.3.2.1(1) "Document Expiration Date" added "CAUTION" and "EXCEPTION" to clarify instructions.

(209) IPU 14U1101 issued 07-03-2014 IRM 3.21.263.8.3.2.1(1) "Document Expiration Date" expanded instructions for entering expiration dates.

(210) IPU 14U0538 issued 03-21-2014 IRM 3.21.263.8.3.2.1(1), "Document Expiration Date" added text "or all zeros in any MM, DD or YYYY" field, leave field blank.

(211) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.1(1) "ID Number" revised statement to say include folio number if present.

(212) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.2(1) "Remarks" instructed to enter the actual date of entering the remarks in MMDDYY format, deleted hyper link to IRM 3.21.263.5.3.4.2 under Driver's License, and added a "Note" to enter the document and document code for additional valid and current ID.

(213) IPU 14U1263 issued 08-18-2014 IRM 3.21.263.8.3.2.2(1) revised "Remarks" instruction to include a "Note" and removed quotation marks from marriage license example and replaced it with" such as" . Also deleted "Note" from "Other" column instructions and deleted "valid or invalid" from "Has the exception document been verified" column instruction.

(214) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.8.3.2.2(1) "Remarks" added hyper link to Exhibit 51 Common RTS Acronyms and deleted bullet for invalid returns with Forms W-2 for another taxpayer.

(215) IRM 3.21.263.8.3.2.4(1) revised 01-01-2015 to instruct to enter both names as a first name with no hyphen when applicant enters their first name as two names.

(216) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.4(1) "Applicant Legal First Name" revised to include "Caution" when no first name is present and this is substantiated by Form W-7.

(217) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.4(1) "Applicant Legal Middle Name" reformatted to remove "Exception ."

(218) IPU 14U1334 issued 09-08-2014 IRM 3.21.263.8.3.2.4(1)" Applicant Legal Last name " revised to include "Reminder" to enter as last name when only a single name is listed.

(219) IRM 3.21.263.8.3.2.5(1) revised 01-01-2015 to remove "/" , expanded instructions to leave only one (1) space between address entries, and added that a hyphen can be input in the address entry except for the city and zip code.

(220) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.8.3.2.5.1(1) deleted "Exception" statement.

(221) IRM 3.21.263.8.3.2.5.5(1) revised 01-01-2015 to say to enter the first 5 digits of the zip code from the Form W-7.

(222) IRM 3.21.263.8.3.2.6(4) and (5) revised 01-01-2015 to remove "/" as an example and stated to leave only one space between entries.

(223) IPU 14U0538 issued 03-21-2014 IRM 3.21.263.8.3.2.7 "Applicant Date of Birth" added Note pertaining to MM, DD or YYYY field.

(224) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.8.3.2.7(1) "Applicant Country of Birth" and "Applicant Country of Citizenship," added to choose country of birth from the drop down box and added hyper links to Exhibit 16.

(225) IRM 3.21.263.8.3.2.8(2) "U.S. Entry Date" revised 01-01-2015 to state passport may show the entrance date stamp and revised instructions for reason box "d" when the DOE listed is prior to the DOB.

(226) IRM 3.21.263.8.3.2.9(1) revised 01-01-2015 to say enter college name if provided; otherwise entry is not required.

(227) IPU 14U1249 issued 08-13-2014 IRM 3.21.263.8.3.2.10(1) deleted "Caution" and reference to Form 14104.

(228) IPU 14U1296 issued 08-28-2014 IRM 3.21.263.8.3.2.10(1) "Valid AA Certificate of Accuracy Attached?" changed "AA" to "CAA" on "Valid AA Certificate of Accuracy attached?" and instructed to choose "No" if the CAA signature is not valid.

(229) IPU 14U0021 issued 01-02-2014 IRM 3.21.263.8.3.2.10(1) "Valid AA Certificate of Accuracy Attached?" added "identification" to the word documents and deleted bullet about filing under the 2011 tax return extension.

(230) IPU 14U1296 issued 08-28-2014 IRM 3.21.263.8.3.2.11(1) "Applicant Signature" reformatted to add "stamped" to the list of signatures when "none" should be selected from the drop down box under "Applicant Signature" .

(231) IPU 14U1275 issued 08-20-2014 IRM 3.21.263.8.3.2.11(1) "Applicant Signature" revised to choose "none" when signature is faxed, photocopied, or electronic with faxed signatures acceptable only for Forms W-7 from gaming officials.

(232) IRM 3.21.263.8.3.2.11(1) "Date Signed" revised 01-01-2015 to change the word "signed " to "dated" .

(233) IRM 3.21.263.8.3.2.11(1) "Delegate Name" revised 01-01-2015 to add "Caution " to not add a delegate name until it is substantiated.

(234) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.8.4.3(2) added hyper link to Exhibit 51, Common RTS Acronyms.

(235) IPU 14U0140 issued 01-16-2014 IRM 3.21.263.8.4.3(2) "Reason for Change" added "Input Change" and note with instructions

(236) IPU 14U0140 issued 01-16-2014 IRM 3.21.263.8.4.4(1) added "Reminder" of when to use "input change"

(237) IPU 14U0314 issued 02-11-2014 IRM 3.21.263.8.8.1(2), added hyper link to Exhibit 51, Common RTS Acronyms.

(238) IRM Figure 3.21.263-23 "Completing Form 3471E" revised on 01-01-2015 to replace Form 3471 with Form 3471E.

(239) IRM Figure 3.21.263-24 "Attaching Form 3471E" revised on 01-01-2015 to replace Form 3471 with Form 3471E.

(240) IPU 14U0814 issued 05-05-2014 Figure 3.21.263-26 "Required Entries to Form 4442, Inquiry Referral " was deleted and created as new Exhibit 52.

(241) IPU 14U0481 issued 03-13-2014 Exhibit 3.21.263-4 revised sentence to include Exception criteria.

(242) IPU 14U1329 issued 09-04-2014 IRM Exhibit 3.21.263-5 revised to include new listing and update addresses, telephone and fax numbers.

(243) IPU 14U1329 issued 09-04-2014 IRM Exhibit 3.21.263-6 revised to include new listings and update addresses, telephone and fax numbers.

(244) IPU 14U1315 issued 09-02-2014 Exhibit 3.21.263-6 revised to include new listings and update addresses, telephone and fax numbers.

(245) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(246) IRM Exhibit 3.21.263-9 revised 01-01-2015 to add the word "under" T for UV light review.

(247) IRM Exhibit 3.21.263-13 revised 01-01-2015 to show current Form 2848 pages

(248) IPU 14U0021 issued 01-02-2014 IRM Exhibit 3.21.263-16 added statement that the Country Code Table is not for use in an address.

(249) IPU 14U0021 issued 01-02-2014 IRM 3.21.263-19, deleted "No Merge Conditions" exhibit.

(250) IPU 14U1153 issued 07-17-2014 IRM Exhibit 3.21.263-19 "Notice 1051" (English) deleted and replaced with Exhibit 3.21.263-51 Form 14433 "Return of Original Documents."

(251) IPU 14U1334 issued 09-08-2014 Exhibit 3.21.263-20 revised graphic and VDN to show new RTS fields.

(252) IPU 14U1153 issued 07-17-2014 IRM Exhibit 3.21.263-20" Notice 1051" (Spanish) deleted and replaced with Exhibit 3.21.263-51 "Form 14433 " which has both English and Spanish text on one page.

(253) IPU 14U1334 issued 09-08-2014 Exhibit 3.21.263-25 revised graphic and VDN to match RTS.

(254) IPU 14U1334 issued 09-08-2014 Exhibit 3.21.263-34 revised graphic and VDN to match RTS.

(255) IPU 14U0021 issued 01-02-2014 IRM Exhibit 3.21.263-45 deleted Letter 4939.

(256) IRM Exhibit 3.21.263-48 "Field Assistance Document Action Sheet (FA-DAS)" document and VDN revised on 01-01-2015.

(257) IPU 14U0814 issued 05-05-2014 Exhibit 3.21.263-50, "Required Entries for Form 4442, Inquiry Referral," was added.

(258) IPU 14U1153 issued 07-17-2014 IRM Exhibit 3.21.263-51" Form 14433 Return of Original Documents (English and Spanish)" created new exhibit for Form 14433 which replaced Form 1051.

(259) IPU 14U0314 issued 02-11-2014 IRM Exhibit 3.21.263-51 added new exhibit of common RTS acronyms.

(260) IPU 14U1196 issued 07-29-2014 Exhibit 3.21.263-52 "Form 14413 Application for IRS ITIN - Reject " created a new exhibit for Form 14413.

(261) IPU 14U1249 issued 08-13-2014 Exhibit 3.21.263-53 "Form 14415, Application for IRS Individual Taxpayer Identification Number: Suspense" created a new exhibit for Form 14415.

Effect on Other Documents

IRM 3.21.263 dated November 8, 2013, is superseded. The following IRM Procedural Updates (IPUs) issued from January 1, 2014, through September 8, 2014, have been incorporated into this IRM: 14U0021, 14U0140, 14U0172, 14U0199, 14U0314, 14U0390, 14U0444, 14U0481, 14U0538, 14U0584, 14U0616, 14U0638, 14U0766, 14U0799, 14U0814, 14U0851, 14U0895, 14U0920, 14U0944, 14U0983, 14U1010, 14U1045, 14U1078, 14U1087, 14U1101, 14U1122, 14U1130, 14U1153, 14U1187, 14U1191, 14U1196, 14U1202, 14U1206, 14U1249, 14U1263, 14U1275, 14U1279, 14U1296, 14U1315, 14U1329, 14U1334.

Audience

Austin Submission Processing Campus (AUSPC) ITIN Operation, Accounts Management (AM) - Telephone Assistors, U.S. Embassy Tax Attache, and Field Assistance (FA) - Taxpayer Assistance Center (TAC) Employees

Effective Date

(01-01-2015)

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

3.21.263.1  (07-01-2014)
Overview

  1. This section of the IRM provides navigational instructions for the Individual Taxpayer Identification Number (ITIN) Real Time System (RTS) and procedures for reviewing and processing:

    • Form W-7, Application for IRS Individual Taxpayer Identification Number, see Exhibit 3.21.263-1.

    • Form W-7SP, Solicitud de Numero de Identificacion Personal del Contribuyente del Servicio de Impuestos Internos, see Exhibit 3.21.263-2.

    • Valid supporting identification documentation

    • Valid supporting exception documentation

    • Tax return requirements

  2. This IRM is designed to be used by Austin Submission Processing Campus (SPC) ITIN Operation employees, and other RTS users. Employees may supplement this IRM by referring to instructions in any IRS publication such as Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number (ITIN), Form W-7 Instructions or other IRM referenced throughout this IRM.

    Note:

    All references to "Form W-7" throughout this IRM refers to both the English and Spanish versions unless otherwise specified.

  3. An ITIN is a nine digit number issued by the IRS to individuals who are required for U.S. tax purposes to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a social security number (SSN) issued by the Social Security Administration.

  4. The ITIN will be in the format of a SSN and begin with the number "9" . The fourth and fifth numbers will range from:

    • 70-88

    • 90–92

    • 94-99

    Note:

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

  5. The ITIN is only for federal tax purposes.

  6. The ITIN does not:

    • Qualify the applicant for Earned Income Tax Credit (EITC), or

    • Make inference to the applicants immigration status, or

    • Qualify the applicants right to work in the United States.

  7. The database of record to process all Form W-7 is the ITIN RTS. All ITIN records reside on the RTS.

3.21.263.2  (10-14-2008)
General Information

  1. The ITIN is governed by rules described in IRC 6109, Identifying Numbers. The following additional guidance is provided for all ITIN users.

3.21.263.2.1  (10-14-2008)
Mission Statement

  1. The mission of all employees working ITIN cases is to ensure ITINs are issued timely to qualifying individuals and used only for tax administration purposes. All tasks will be done in a manner to advance the overall service goal of customer satisfaction, education, outreach, and compliance with applicable tax laws.

3.21.263.2.2  (01-01-2010)
IRS Employee Contacts

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

3.21.263.2.3  (08-07-2013)
ITIN Disclosure Guidelines

  1. IRC 6103(a) provides that returns and return information shall be confidential subject to limited exceptions provided in the IRC. IRC 6103(c) provides that, subject to the requirements and conditions set forth by the Secretary in the regulations, returns and return information may be disclosed to persons designated by the taxpayer in a request for or consent to disclosure.

  2. IRC 6103(a) also provides for disclosures to any other person at the taxpayer's request to the extent necessary to comply with a request for information or assistance made by the taxpayer to another person. Consent may be oral or in writing.

  3. It is the responsibility of all IRS employees to protect confidential applicant information and to understand what is and what is not an authorized access or authorized disclosure under the provisions of the law. This includes the protection of computer terminal information. For example, when applicants calling on IRS phone lines inquire about their application and less than six (6) weeks have passed since the Form W-7 application was filed, advise the applicant to allow more processing time. If more than six (6) weeks have passed and research shows no record of the application, employees are authorized to disclose to the applicant that we have no record of the application and they should re-submit.

    Reminder:

    During peak processing periods (January 15 through April 30) or if the application was submitted from abroad, allow up to 10 weeks.

    Note:

    Ensure taxpayer data other than the name and address is NOT visible through a window envelope. For example, Form 14413 and Form 14415 must use envelopes without windows.

  4. For questions on disclosure, the Freedom of Information Act (FOIA), and the Privacy Act, refer to IRM 11.3, Disclosure of Official Information or the Disclosure Help Desk at 1-866-591-0860.

    Note:

    The Disclosure Help Desk number is for internal use only and should not be given to taxpayers.

3.21.263.2.4  (10-14-2008)
Telephone Oral Testimony

  1. You must determine if the person you are speaking to is entitled to receive or present requested information. IRM 3.21.263.2.3, ITIN Disclosure Guidelines, for disclosure rules pertaining to ITINs.

  2. Do not under any circumstance accept oral testimony for missing signatures or documentation verification.

  3. Once you have verified that the caller is responsible for the information, then take the appropriate action.

3.21.263.3  (01-01-2011)
What Is an Acceptance Agent?

  1. An Acceptance Agent is a person (individual or entity) who has signed an agreement with the IRS, and is authorized to assist resident and non-resident alien individuals and other foreign persons who are ineligible or unable to receive a SSN in obtaining an ITIN or employer identification number (EIN) from the IRS.

  2. The following is general information to assist in identifying the role and authority of Acceptance Agents.

3.21.263.3.1  (01-02-2013)
Acceptance Agent (AA) or Certifying Acceptance Agent (CAA)

  1. There are two kinds of Acceptance Agents. Refer to the table below for specific roles and authorizations.

    Role or Authority Acceptance Agent Certifying Acceptance Agent
    Review the required supporting identification documentation that proves foreign status and identity. X X
    Verify the completeness of Form W-7. X X
    Submit Form W-7 to the IRS with required original or certified copies (certified by the issuing agency). supporting identification documentation and tax return or exception documentation. See IRM 3.21.263.4.6 for exceptions. X X

    Exception:

    CAAs must interview primary and secondary applicants via face-to-face or live video electronic interviews and send copies of original/certified documents reviewed.

    Submit Form W-7 to the IRS with required Certificate of Accuracy (COA) and tax return or exception documentation.

    Reminder:

    CAA must also include original or certified copies (certified by the issuing agency) for dependents and copies of reviewed ID for primary and secondary applicants interviewed face-to-face or on electronic videos.

      X
    Authorized to receive the ITIN assignment letter directly from the IRS.   X

3.21.263.3.2  (08-13-2014)
Acceptance Agents Form W-7 Documentation Requirements

  1. All Form W-7 submitted by an AA or CAA must meet supporting identification documentation requirements by proving identity and foreign status. See IRM 3.21.263.4.6. CAAs are required to personally review and certify identification documents for primary, associated secondary (spouse) and dependent applicants. Certification for primary and secondary applicants requires face-to-face interview or via live electronic video interview.

  2. AAs and CAAs must also attach valid exception documentation to prove the applicant has met an exception to the filing of a valid U.S. tax return.

  3. Form W-7 submitted by a CAA must have a Form W-7 (COA), attached with the copies of all original or certified copies (certified by the issuing agency) that identifies the applicants supporting identification documentation that was reviewed by the CAA to prove identity and foreign status for primary and secondary applicants through face-to-face interviews or live video electronic interviews. See IRM 3.21.263.4.6 for the exceptions. The Form W-7 (COA) stipulates that to the best of the CAA's knowledge, the applicants' supporting identification documentation is authentic and accurate.

    Note:

    Form W-7 (COA), Form 14194, is the official form for a certificate of accuracy. However, if the form is identified as Form W-7 (COA) and all required entries are present, consider it valid.

    Reminder:

    All dependent ID must be original or certified by the issuing agency.

  4. All fields of Form W-7 (COA) must be completed for Form W-7 (COA) to be valid with two exceptions:

    • The AA signature date is not required if the signature date is present in the "Acceptance Agent's Use Only" signature area of Form W-7.

    • The name and EIN of the partnership is required only when the applicant is applying for Exception 1(a) Partnership Interest.

  5. Only Form W-7 (COA) signed by the authorized representative/responsible officer are valid. The signature must be an original and not stamped or digitalized.

    Caution:

    Accept the Certificate of Accuracy (COA) if signed and dated by a U.S. government military officer, Judge Advocate General (JAG) officer, U.S. State Department employee, or U.S. consul/embassy employee.

  6. Form W-7 (COA) must have an original signature. Photocopies of Form W-7 (COA) are acceptable if they are legible and contain an original signature.

3.21.263.4  (02-11-2014)
ITIN General Processing Information

  1. Form W-7 Application, along with required documentation, may be submitted by mail to the IRS or can be accepted at an IRS Taxpayer Assistance Center (TAC), however, processing of the Form W-7 applications will be performed only in the ITIN Operation.

  2. ITIN applicants are required to prove identity and foreign status and demonstrate a federal tax reporting or filing requirement when submitting their Form W-7 application and are not issued an ITIN until those requirements are met. This requires the applicant to submit required supporting identification documentation and attach a tax return, or proof of prior filing with an open TIN issue (Math Error Notice, CP 54, Letter 239C, or a copy of the tax return, etc.) or other substantiating documentation proving an exception to filing is met.

  3. Once the application has been submitted and entered into the ITIN database, any IRS office with approved access can view the application using the ITIN Real Time System. Refer to IRM 3.21.263.8 for ITIN RTS Navigation guidance.

  4. All employees that address ITIN inquiries or work ITIN related cases must follow all guidance in this IRM within their scope. For specific guidance by functional area see the following sections:

    • Austin Submission Processing ITIN Operation - See IRM 3.21.263.5.

    • Field Assistance - see IRM 3.21.263.6.

    • Accounts Management -See IRM 3.21.263.7.

    Reminder:

    All employees must review the Remarks Screen and Comments field before taking any action on an ITIN inquiry/ITIN related case. See Exhibit 3.21.263-12 for a listing of document codes and seeExhibit 3.21.263-49 for a listing of common RTS acronyms.

  5. Each Austin SP ITIN employee is responsible for creating a correct product including correcting errors identified in a subsequent handling if incorrect on initial input. See IRM 3.21.263.5.10.4 and see IRM 3.21.263.5.10.5.

    Example:

    An ITIN tax examiner (TE) working Correspondence inventory has a CP 566 response for a missing signature (S-14). When reviewing the applicant's birth certificate to determine the name of the parents, the CP TE determines the birth certificate is questionable. The CP TE must go into RTS and make the birth certificate invalid. This will generate R 44 status together with S 02, S 14 and S 29.

    Reminder:

    Ensure that the identification documents (ID) in the envelopes belong to the application. If unable to locate an application for the ID in question, refer them to your lead.

3.21.263.4.1  (01-01-2011)
Who Should Apply

  1. ITIN applicants are generally resident (green card or substantial presence test) or nonresident (not a U.S. citizen) aliens.

  2. Any U.S. resident or nonresident alien who does not qualify for a SSN can apply for an ITIN provided they meet the following:

    • Have a federal tax return filing requirement, or;

    • Are filing a U.S. tax return only to claim a refund, or

    • Have a federal tax reporting requirement, or

    • Can be claimed as an exemption or dependent on a valid U.S. federal tax return.

  3. Use the tables below for assistance in determining ITIN eligibility:

    If... Then...
    Applicant is a citizen of the U.S. -or-, Applicant is eligible for a SSN.

    Note:

    To apply for a SSN, submit Form SS-5Application for a Social Security Number Card (Original, Replacement or Correction), to the SSA.

    Caution:

    If applicant is holding a social security card that is annotated with "Not Valid for Work" , etc., accept this card as a valid TIN for tax filing or tax reporting purposes.

    Applicant was born in the U.S. and does not have diplomatic immunity -or-,
    Applicant entered the U.S. on a work visa, Exhibit 3.21.263-4.-or-,
    Applicant is entitled to a federally funded benefit (stipend, fellowship, grant).
    If... Then...
    Applicant is on a non-work visa and must file a federal tax return or provide a taxpayer identification number (TIN) for federal tax reporting -or-, Applicant is eligible for an ITIN and must file a U.S. federal tax return or provide exception documentation with Form W-7.

    Caution:

    If applicant is holding a Social Security card that is annotated with "Not Valid for Work" , etc., accept this card as a valid TIN for tax filing or tax reporting purposes. This applicant is not eligible for an ITIN.

    Applicant was born in the U.S. and has diplomatic immunity, and must file a federal tax return or provide a TIN for federal tax reporting -or-,
    Applicant applied for and was denied a SSN, and must file a federal tax return or provide a TIN for federal tax reporting -or-,
    Applicant is an undocumented alien, and must file a federal tax return or provide a TIN for federal tax reporting.

3.21.263.4.2  (07-09-2014)
Filing Tax Return versus Exception Criteria

  1. The ITIN will not be issued unless the applicant proves they require they ITIN for federal tax filing or reporting purposes by:

    • Submitting their tax return with the Form W-7 or

    • Proving prior filing with an open TIN issue by enclosing IRS Notice (Math Error, CP 54, or Letter 239C, etc.) or

    • Providing additional documentation to show they qualify for one of five exceptions.

  2. Below are some examples of the type of tax returns that may be attached:

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040NR-EZ, U.S. Nonresident Alien Income Tax Return for Certain Single Filers

    • Form 1040 or Form 1040A , U.S. Individual Income Tax Return

    • Form 1040EZ, Income Tax Return for Single Filers and Joint Filers With No Dependents

  3. Certain exception criteria may apply in lieu of filing a U.S. tax return. The applicant must state what exception they are claiming unless you can clearly determine the exception from the attached documentation. Listed below are the five (5) exception criteria that may be claimed.

    • Exception 1- Third Party Withholding on Passive Income or Tax Treaty Benefits-Boxes (a) (h). This Exception may apply if applicant is the recipient of certain types of passive income that is subject to third party withholding or covered by tax treaty benefits.

    • Exception 2 - Other Income (Wages, Salary, Compensation and Honorarium Payments) box (a) and (h), or Scholarship, Fellowship, and Grants box (f) and (h), or Gambling Income box (a) and (h). This Exception may apply if the applicant is or is not claiming the benefits of U.S. income tax treaty with a foreign country and receives wages, salary, compensation or honoraria payments, scholarships, fellowships and grants or gambling winnings (non-resident aliens).

    • Exception 3 - Third Party Reporting of Mortgage Interest box (h). This Exception may apply if the applicant has a home mortgage loan on U.S. Real Property that is subject to third party reporting of mortgage interest.

    • Exception 4 - Disposition by Foreign Person of a U.S. Real Property Interest (FIRPTA) box (h). This Exception may apply if the applicant is a party to the disposition of a U.S. Real Property interest by a foreign person that is generally subject to withholding by the transferee or buyer (withholding agent)

    • Exception 5, T.D. Form 9363, box (h). This Exception may apply if the applicant is a non - U.S. representative of a foreign corporation who needs to obtain an ITIN for the purpose of meeting their E-filing requirement. Applicants should indicate this request by noting "Exception 5, T.D. 9363" on Line h (also consider Exception number alone, "TD 9363" , Treasury Decision 9363, Form 1120-F or any similar statement, as an Exception 5 request).

3.21.263.4.3  (01-01-2015)
Reason for Submitting Form W-7

  1. Applicants must check the appropriate box on the Form W-7 that identifies their reason for applying for the ITIN. Applicable reason boxes include the following:

    1. Nonresident alien required to obtain ITIN to claim tax treaty benefits - Reason box "h" should also be checked and the tax treaty country and article number specified in order to claim a tax treaty benefit. Refer to Exception 1 Criteria and attach required documentation.

    2. Nonresident alien individual who is required to file a U.S. tax return - Tax return is filed to report income effectively or non-effectively connected with the conduct of a trade or business in the U.S. or only to claim a refund.

    3. U.S. resident alien (based on days present in the United States) filing a U.S. tax return - Includes foreign individuals living in the U.S. who do not have permission to work from United States Citizenship and Immigration Service (USCIS) and are ineligible for a SSN. A date of entry is required on Line 6d.

    4. Dependent of U.S. citizen/resident alien - Includes individuals who are claimed as a dependent on a U.S. tax return and are ineligible for a SSN. Name and SSN/ITIN of U.S. person (must be primary or secondary taxpayer) must be entered to right of box "e" . A date of entry is required on Line 6d (residents of Canada or Mexico do not require a date of entry). Refer to IRM 3.21.263.5.3.5.13 for additional information on Foreign Adoptions and seeIRM 3.21.263.4.6 for a spouse or dependents of U.S. military personnel on a foreign base.

    5. Spouse of a U.S. citizen/resident - Includes a Non-resident Alien spouse who is listed as an exemption on a Married Filing Joint/Separate tax return. Name and TIN of U.S. person (must be primary or secondary taxpayer) must be entered to right of box "e" . Applicant is not required to live in U.S., if taxpayer elects to report worldwide income.

    6. Nonresident alien student, professor or researcher filing a U.S. tax return - Applicant must be a bona fide student, professor or researcher coming temporarily to the U.S. solely to attend classes at a recognized institution of education, teach or perform research. A tax return is not required if box "h" is checked and applicant claims Exception 2 and provides required exception documentation. Country of citizenship must be entered on Line 6a and Lines 6c and 6g must be completed. A date of entry is required on line 6d. Passport and visa (F-1, J-1, M-1) information (found in some passports) are required pieces of supporting identification documentation.

    7. Dependent/spouse of a nonresident alien holding a U.S. visa - Applicant must be claimed as dependent or spouse on federal tax return of the nonresident visa holder. A date of entry is required on Line 6d. A valid passport and U.S. visa is required for the dependent/spouse and must include all information (i.e., visa type, visa number, visa expiration date).

      Note:

      See Exhibit 3.21.263-4 for a list of potential work authorization visas which may qualify the applicant for a SSN. See Exhibit 3.21.263-10 for an explanation of visa entries.

    8. Other or additional information box - If the applicants Reason for Submitting is not described in boxes "a" through "g" , the applicant is advised to describe, in detail, their reason for applying and attach the supporting documentation to support their claim. If box "h" is checked alone and the applicant did not describe in detail their reason for applying, then Exception 1, 3, 4 or 5 must be present and the appropriate supporting exception documentation must be attached. Box "h" cannot stand alone if Exception 2 is annotated (check box "a" or "f" must be checked).

3.21.263.4.4  (01-02-2013)
How to Obtain Application and Where to File

  1. Obtain Form(s) W-7 via:

    • IRS offices world wide

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

    • World Wide Web - http://www.irs.gov/

    • Acceptance Agents (may charge a fee)

  2. Completed Form W-7 / Form W-7SP(s) and valid original or copies certified by the issuing agency (see IRM 3.21.263.4.6 for exceptions) supporting identification documentation along with proof of federal tax filing or reporting requirement or exception criteria can be submitted to an IRS Taxpayer Assistance Centers (TACs) or certain U.S. consular offices abroad. See Exhibit 3.21.263-5.

  3. Applicants may choose to use the services of an Acceptance Agent, who may charge a fee, or mail the application and attachments directly to:

    Internal Revenue Service
    ITIN Operation
    P.O. Box 149342
    Austin, TX 78714-9342


    For internal mail and those packages being sent overnight express to the ITIN Unit, use the following address. If a telephone number is required for the overnight package provide 512- 460-4807.

    Internal Revenue Service
    ITIN Operation
    Mail Stop 6090 - AUSC
    3651 South Interregional, Highway 35
    Austin, TX 78741-0000

3.21.263.4.5  (01-01-2015)
Internal Revenue Service Number (IRSN)

  1. An IRSN (Internal Revenue Service Number) is a number assigned by the IRS and is used in place of a required TIN during processing.

  2. If a tax return is attached to a primary Form W-7 applicant (or secondary with Schedule SE) who is rejected, an IRSN is assigned to the tax return which is sent forward for processing. If a dependent application(s) is rejected and a tax return is attached, the tax return goes forward for processing. The dependents are systemically disallowed (math error notices generate).

  3. An IRSN is used only as an internal identifying number or until the taxpayer is assigned a SSN or ITIN, or until their SSN or ITIN is located.

  4. IRSNs are in the same format as a SSN or ITIN, for example, XXX-XX-XXX.

  5. All IRSNs begin with the number "9" .

  6. The fourth and fifth digit will always be a valid Internal Revenue Service Campus (IRSC) code. See the following table for valid IRSCs:

    IRSC Valid 4th and 5th Digit Backup Valid 4th and 5th Digit
    Andover 08 38
    Atlanta 07 37
    Austin 18 06
    Cincinnati 17 02
    Fresno 89 10
    Kansas City 09 39
    Memphis 49 03
    Ogden 29 04
    Philadelphia 28, 66 05

    Note:

    An IRSN will not be issued to anyone other than the primary or required secondary taxpayer (issued only when secondary taxpayer has Schedule SE).

3.21.263.4.6  (09-08-2014)
ITIN Documentation Requirements

  1. ITIN applicants are required to submit documentation to satisfy Form W-7 requirements. All Form W-7s must enclose ONLY original or certified (certified by the issuing agency) supporting identification documents (ID) when the applicant mails the application to the Austin ITIN Operations. Exceptions to this include:

    • Notarized copies are acceptable ONLY for:
      - Both boxes "a " and "h" checked
      - Box "d" - only when APO (Air/Army Post Office) or FPO (Fleet Post Office ) address or military ID is present.
      - Box "e" - only when APO/FPO address or military ID is present.

    • Certified Acceptance Agents (CAAs) are required to attach Form 14194 (Form W-7 COA) along with copies of original/certified copies of ID secured in face-to-face or video electronic interviews for primary and secondary applicants. CAAs must send original or certified copies of ID for all dependent applicants to the ITIN Operations.

      Caution:

      Acceptance Agents (AAs) are required to submit original or certified ID for all applicants.

    • The IRS tax attaches (Beijing, Frankfurt, London, and Paris) can review original and certified copies of all 13 types of approved ITIN ID for all applicants for applicants appearing in person. They will send copies of all ID along with the Form W-7 to Austin ITIN Operations. See IRM 3.21.263.6.

    • Student Exchange Visitors Program (SEVP): Non-resident alien students, exchange visitors, spouses and dependents under the SEVP can have their original ID certified by a SEVP approved institution rather than mailing originals to the IRS. These are individuals admitted to the U.S. under an F, J, or M visa who receive taxable scholarships, fellowships, or other grants. See IRM 3.21.263.5.3.5.2.

    • Designated Taxpayer Assistance Centers (TACs) can review original passports and national ID cards ONLY for applicants appearing in person. Copies of the ID are attached to the Form W-7. All other original/certified ID is mailed with the Form W-7 application to Austin ITIN Operations.

      Reminder:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Foreign consuls can certify documents. For example, the Colombian Consul in New York City can certify Colombian passports. Accept certification from U.S. embassies and consulates abroad. See IRM 3.21.263.5.3.4.2.1

  2. Effective October 2, 2012, the IRS issued a change for non-citizens with approved Tax Year 2011 extensions to file their tax return. They could submit original/copies of ID certified by the issuing agency to Austin ITIN Operations or have their original documents certified by a CAA. The Form W-7 application submitted for the taxpayers under this temporary procedure included:

    • Completed and signed Form W-7

    • Form 14194, Certificate of Accuracy (COA) with copies of each identification document certified

    • Original or copies certified by the issuing agency of identification documents not covered by the temporary procedure

    • Copy of IRS approved Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

    • Copy of Form 6401, Request for Missing Information, sent with the IRS approved Form 4868

      Exception:

      Form 6401 is not required when the primary has a TIN but is applying for an ITIN for a spouse or dependent.


    • Original signed TY 2011 tax return(s)

    • Any other supporting documents necessary to meet the Form W-7 application requirements.

  3. Applicants must submit a passport or at least two valid supporting ID from the list of 13 acceptable documents in order to meet the requirements for an ITIN. A birth certificate must also be attached for applicants under 18 years of age (unless a passport is present).

  4. Supporting ID must:

    • Prove identity, that is, contain name and photograph, and

    • Support the applicant's claim of foreign status.

      Note:

      The applicant may have to provide a combination of documents to prove identity and foreign status

      Caution:

      If applicant is 18 years or older and not a student, a valid ID with a photo is required. Medical records are acceptable only for applicants under the age of 6 at the date the Form W-7 is signed. School records are acceptable only for applicants under the age of 18 at the date of the Form W-7 signature. See IRM 3.21.263.5.3.4.2.

  5. Refer to the table below for the list of acceptable supporting identification documentation for ITIN assignment.

    Type of Document Documentation Codes Proves Foreign Status Proves Identity
    Passport 01 X X
    National Identification Card 02 X X
    U.S. Drivers License 16   X
    Civil Birth Certification 17 X

    Note:

    Proves foreign status only if documents are foreign.

    X
    Medical Records (Dependent applicants under the age of 6) 20 X

    Note:

    Proves foreign status only if documents are foreign.

    X
    Foreign Drivers License 21   X
    U.S. State Identification Card 22   X
    Foreign Voters Registration Card 23 X X
    U.S. Military Identification Card 24   X
    Foreign Military Identification Card 25 X X
    School Records (Dependents under the age of 18) 26 X

    Note:

    Proves foreign status only if documents are foreign.

    X
    Visa (U.S.)
    See Exhibit 3.21.263-4 for specific visa definitions and work authorization.
    32 X X
    United States Citizenship and Immigration Services (USCIS) Photo Identification 38 X X
  6. Supporting identification documentation must also be current and provide an expiration date.

    Exception:

    Birth certificates and some foreign drivers licenses will not have an expiration date.

  7. In addition to supporting identification documentation, applicants will also be required to submit documentation to support any exception (in lieu of filing a tax return) criteria claimed on Form W-7. The exception documentation may vary based on the specific exception claimed. Examples of exception documentation include the following:

    • Partnership agreement

    • Bank letter

    • Letter from withholding agent

    • Employment letter/contract

    • Letter of invitation for speaking engagement

    • Form 8233

    • SSA denial letter

    • Letter from educational institution

    • Form W-8BEN

    • Copy of contract of sale or similar mortgage loan documentation

    • Form 8288 Series

    • Form 13350

3.21.263.4.7  (08-19-2013)
Status Codes

  1. Once all data from the Form W-7 is entered into the ITIN Real Time System (RTS), the database will systemically generate the application status. These codes are used to identify the final status of the application. The status codes are:

    Status Code Definition
    Assigned Used to identify those applications that have been assigned an ITIN.
    Suspended Used with suspense reason code(s) and identifies those applications that have been suspended for additional or missing information.
    Rejected Used with reject reason code(s) and identifies those applications that have been rejected due to failure to meet requirements.
    Hard Reject Used with hard reject reason code(s) and identifies those applications that have been rejected due to an invalid tax return.
    OFAC Identifies those records that require further processing beyond the normal 4-6 week turn-around time frame. These cases require special handling. If contacted by applicant whose applicant is in OFAC status, follow procedures below:
    • Advise applicant application has been received and is currently being processed.

      Exception:

      AM and TAC employees will prepare Form 4442, Inquiry Referra l, listing name, DOB of applicant, DLN, and telephone contact information along with Form 8822, if applicable, and annotate "contact with applicant" with the date of the contact. Fax Form 4442 to the ITIN Unit, attention: "OFAC" Status Coordinator. Route Form 8822 to Entity.

    • Verify the applicant's address and request a telephone number with the best time to call if additional information is required to process the application. If the address of record is different from what is on the ITIN database, then request taxpayer complete Form 8822, Change of Address. Instruct the taxpayer to send this directly to the ITIN Unit.

    • Advise the applicant that additional time is required to process their ITIN application and allow 90 days from the date of the contact before inquiring again regarding the status.

    Pending Used to identify those applications that have been assigned a pending status. A pending status indicates an external entity was unavailable for an ITIN validation to take place.
    SP ITIN Operation, attempt to resubmit the application on RTS.
    Field Assistance (FA), IRM 3.21.263.6.1.34 for Form 4442 preparation procedures,
    Accounts Management (AM), IRM 3.21.263.7.5 for Form 4442 preparation procedures.

3.21.263.4.8  (01-01-2011)
Reason Code Overview

  1. If the status that is generated for an application is other than "Assigned" the corresponding reason codes will also be displayed. The reason code describes the specific condition that prevented the ITIN assignment.

  2. There are three types of reason codes:

    • Suspense Reason Codes

    • Reject Reason Codes

    • Hard Reject Reason Codes

  3. If a combination of suspense and reject conditions are present for an application, the reject reason codes will be listed first, followed by the suspense reason code(s).

3.21.263.4.8.1  (01-28-2014)
Suspense Reason Codes

  1. The RTS will identify all applicable suspense codes. If multiple suspense conditions are identified, they will be listed in numeric order.

  2. The following table offers a brief description of the suspense reason codes and provides a reference to Form W-7.

    Suspense Reason Codes Definition
    S 01 Supporting identification documentation is missing.
    S 02 Supporting identification documentation that was submitted is unacceptable.
    S 03 Supporting identification documentation is not original or certified.
    S 04 Line 3, foreign residence address is missing.
    S 05 Line 3, foreign residence address has a P. O. Box or c/o address.
    S 06 Applicant's date of birth is missing, Line 4.
    S 07 Applicant's place of birth is missing, Line 4.
    S 08 (Reserved)
    S 09 Applicant's country(ies) of citizenship is missing, Line 6 a.
    S 10 (Reserved)
    S 11 The type of supporting identification documentation and the Country issuing it is undeterminable, Line 6 d.
    S 12 Visa type, number or expiration date is missing, Line 6 c.
    S 13 Applicant's reason for submitting Form W-7 is missing.
    S 14 Applicant's signature is missing or the signature requirement is not met.
    S 15 Applicant's supporting identification documentation cannot be translated locally and needs a certified translation.
    S 16 The Certifying Acceptance Agent (CAA) did not attach the Certificate of Accuracy.
    S 17 Applicant's country of birth is not a foreign sovereignty identified by the U.S. State Department, Line 4.
    S 18 Applicant's country of citizenship is not a foreign sovereignty identified by the U.S. State Department, Line 6 a.
    S 19 Applicant's date of entry in the U.S. is missing, when required Line 6 d.
    S 20 The applicants name on Form W-7 does not match name on U.S. federal tax return or is not recognizable.

    Note:

    This suspense code is no longer used and no text generates in the CP 566.

    S 21 Supporting exception documentation is missing.
    S 22 Reserved
    S 23 Applicant selected reason for submitting Form W-7 as a U.S. resident alien filing a U.S. tax return and did not provide a U.S. mailing address, Line 2.
    S 24 The IRS has found that the ITIN has not been used for federal tax reporting or filing for the past 5 years (systemically generated).
    S 25 The dependent application is suspended awaiting primary/secondary application resolution. (systemically generated).
    S 26 Passport reviewed is not valid.
    S 27 National identification card reviewed is not valid.
    S 28 U.S. driver's license reviewed is not valid.
    S 29 Civil birth certificate reviewed is not valid.
    S 30 Medical records reviewed is not valid.
    S 31 Foreign driver's license reviewed is not valid.
    S 32 U.S. state identification card reviewed is not valid.
    S 33 Foreign voter's registration card reviewed is not valid.
    S 34 U.S. military identification card reviewed is not valid.
    S 35 Foreign military identification card reviewed is not valid.
    S 36 School records reviewed is not valid.
    S 37 U.S. visa reviewed is not valid.
    S 38 U.S. citizenship and Immigration Services (USCIS) photo identification card reviewed is not valid.
    S 50 Name on Form W-2 does not match name on tax return.

3.21.263.4.8.2  (01-01-2014)
Reject Reason Codes

  1. The RTS will identify all applicable reject reason codes. If multiple reject conditions are identified, they will be listed in numeric order. The following table offers a brief description of the reject reason codes and provides a reference to the Form W-7.

    Caution:

    If an application is placed in "R 99" status, then the suspense status codes originally associated to the application will be placed in the application history.

    The table below explains reject reason codes:

    Reject Reason Codes Definition
    R 01 Applicant has a SSN.
    R 02 Applicant has a previously assigned ITIN.
    R 03 The person submitting the Form W-7 is not authorized to act as an Acceptance Agent.
    R 04 The person submitting the Form W-7 has been suspended from the Acceptance Agent program.
    R 05 The person submitting the Form W-7 has been removed from the Acceptance Agent program.
    R 06 Applicant has previously submitted an application that is currently being processed.
    R 07 Applicant is a U.S. citizen or has been granted a U.S. visa for work purposes and is entitled to a SSN.
    R 08 The Name and/or TIN of U.S. person entered on the write in area next to right of the "reason for submitting" "d" or "e" , is invalid.
    R 09 The Name and/or TIN of U.S. person entered on the write in area next to right of the "reason for submitting" "d" or "e" , is missing.
    R 10 Applicant indicated they applied for the ITIN for use other than federal tax purposes.
    R 11 The application has been submitted for a Decedent/deceased applicant.
    R 12 The applicant did not meet Physical/substantial presence based on their date of entry in the U.S., Line 6 d.
    R 13 The supporting identification documentation has expired.
    R 14 Applicant has been assigned multiple ITINs and is being advised what ITIN to use (Systemically generated).
    R 15 Applicant has been assigned a SSN and is being advised to use the SSN and their ITIN is now invalid (Systemically generated).
    R 16 Applicant submitted Form W-7 to claim a tax treaty benefit, reason for submitting "a" , and did not provide a tax treaty country on Line 3.
    R 17 The applicant did not attach their tax return as required.
    R 18 The applicant is a Non Resident Alien (NRA) student, professor or researcher and did not complete line 6c visa information, line 6d with Passport information, or line 6g name of college/university as required.
    R 19 The applicant did not provide the supporting exception documentation or complete the write-in area to the right of reason for submitting "h" , as required.
    R 20 The name of the applicant is missing from the tax return that was submitted.
    R 21 The supporting exception documentation that was submitted is invalid.
    R 22 Applying for ITIN with non-effectively connected income to obtain an employer identification number (EIN). See Publication 519, U.S. Tax Guide for Aliens, for a definition of non-effectively connected income.
    R 23 Applying for ITIN with effectively connected income to obtain an employer identification number (EIN) and did not attach the required tax return. See Publication 519, U.S. Tax Guide for Aliens, for a definition of effectively connected income.
    R 24 The applicant is a spouse and/or dependent of a resident of India and has a visa from U.S.I.C.S.
    R 25 The revision date of Form W-7 submitted by the applicant is obsolete.
    R 26 The IRS has issued an ITIN erroneously and now are advising the applicant that their ITIN is being revoked.
    R 27 The IRS has found that the ITIN has not been used for federal tax reporting or filing for the past 5 years.
    R 44 The application has been rejected because the response to the CP 566 suspense notice was incomplete.
    R 88 Questionable identification documents
    R 89 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    R 98 The application was received without any type of mailing address
    R 99 The original application was placed in suspense status. The database has now changed the status to reject because the applicant did not respond to the CP 566 notice requesting additional information.

3.21.263.4.8.3  (06-02-2014)
Hard Reject Reason Codes

  1. Hard Reject reason codes are generated on the RTS if there is an indication that the tax return submitted with the Form W-7 application is invalid.

  2. The following table describes the Hard Reject reason codes that are displayed on the ITIN-RTS when a Hard Reject condition is identified.

    Hard Reject Reason Codes Definition
    HR 1 The attached U.S. federal tax return was not valid(had no tax liability)

    Note:

    In 2012 and 2013, the Hard Reject 1 status was also used to process applications with Form W-2s that did not match the name of the primary or secondary Form W-7 taxpayer on the tax return. The remarks screen was updated to show that local Letter 4939 requesting a corrected Form W-2 or other proof of income was sent to the primary taxpayer on the return and CAA.. Suspense code 50 was added to CP 566 in mid-August 2013 to replace Letter 4939.

    HR 2 The attached U.S. federal tax return was not signed.

3.21.263.4.9  (09-19-2013)
ITIN Notices

  1. The table below lists the types of ITIN Notices that are issued to applicants.

    Notice Title Description
    Notice 1051 EN/SP Return of Documents (English/Spanish) This notice is used to return original supporting identification documentation back to the applicant (e.g., passport, national identification card, etc.)
    This notice is mailed by ITIN Operation employees with the documents being returned.
    CP 565 A /CP 565 A-SP Original Assignment Notice This notice advises the applicant of their assigned ITIN.

    Note:

    Since December 2003, applicants are advised of their ITIN on watermarked security paper; issuance of the ITIN card was discontinued.

    CP 565 B / CP 565 B-SP Reissue Assignment Notice This notice advises the applicant of their previously assigned ITIN.
    CP 566 / CP 566 -SP Suspense Notice This notice advises the applicant their application is not processable and additional information must be submitted.
    CP 567 / CP 567- SP Reject Notice This notice advises the applicant their application is rejected based on the information they provided and a new Form W-7 must be submitted with the appropriate supporting identification and/or exception documentation.
    CP 574 / CP 574- SP (issued as CP 569 until July 2013) Hard Reject Notice This notice advises the applicant their application is being rejected, because the federal tax return did not reflect a filing requirement. The Hard Reject Notice or CP 574 generates locally in the ITIN Operation.

    Caution:

    The Hard Reject 1 status was also used in 2012 and part of 2013 to process applications with Form W-2s that did not match the name of the primary or secondary taxpayer. Letter 4939 was sent to the primary taxpayer on the return and CAA requesting a corrected Form W-2 or other proof of income in lieu of the CP 574. See IRM 3.21.263.5.3.2. CP 566 Suspense Code 50 replaced Letter 4939 process in mid-August 2013.

  2. The ITIN-RTS is designed to generate notices in English or Spanish. Submission Processing Tax Examiners initially enter the language for ITIN notices based on the type of Form W-7 submitted. Once the notice language has been established from initial input of the application, it can not be changed.

  3. The table below identifies the recipient of the notice. Based on the Submission Source, the RTS will direct correspondence to the appropriate recipient.

    If ... Then ...
    "Applicant Direct" , or "IRS Office" , the notice will generate directly to the applicant at their mailing address.
    "Acceptance Agent" is selected the notice will generate to the applicant at their mailing address and the CAA at their address of record.

    Exception:

    If the CAA is a financial institution, the notice will only be issued to the CAA.

3.21.263.4.10  (01-01-2015)
Taxpayer Advocate Service (TAS) Assistance

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. TAS helps taxpayers whose problems with the IRS are causing financial difficulties, who have tried but not been able to resolve their problems with the IRS, and those who believe an IRS system or procedure is not working as it should.

  2. The following types of cases should not be referred to TAS:

    • The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

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

  3. The following table is a list of situations that meet TAS criteria.

    Note:

    See IRM 13.1.7"TAS Advocate Service (TAS) Case Criteria " for complete information on TAS criteria and employee responsibilities.

    Criteria Description
    1 The taxpayer is experiencing economic harm or is about to suffer economic harm.
    2 The taxpayer is facing an immediate threat of adverse action.
    3 The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).
    4 The taxpayer will suffer irreparable injury or long-term adverse impact if relief is not granted.
    5 The taxpayer has experienced a delay of more than 30 days to resolve a tax account problem.
    6 The taxpayer has not received a response or resolution to their problem or inquiry by the date promised.
    7 A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer's problem or dispute within the IRS.
    8 The manner in which the tax laws are being administered raise considerations of equity, or have impaired or will impair the taxpayer's rights.
    9 The National Taxpayer Advocate (NTA) determines compelling public policy warrants assistance to an individual or group of taxpayers.
  4. A taxpayer should not have to specifically request TAS assistance to be referred to TAS.

  5. Refer taxpayers to the Taxpayer Advocate Service (TAS), (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (An Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures. The information below outlines the stages of the ITIN TAS referral process. Taxpayer inquiries are received from all areas within IRS.

    Stage Who Does What
    1 The originator

    Note:

    Case must meet TAS Criteria, and cannot be resolved the same day.

    Prepares Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and fax immediately to the Local Taxpayer Advocate (LTA).
    2 LTA or designated TAS employee
    1. Reviews the case.

    2. Loads the case into the Taxpayer Advocate Management Information System (TAMIS) if it meets TAS criteria.

    3. Contacts the taxpayer and secures the necessary information.

    4. Prepares an Operations Assistance Request (OAR), Form 12412.

    5. Forwards the OAR to the TAS Liaison for processing within TAS guidelines.

    3 TAS Liaison Forwards OARs by fax, hand delivery, or secure E-mails to designated mail boxes in the ITIN Function.

    Note:

    In Submission Processing, the W&I Business Unit Liaison may be a Planning and Analysis Staff Analyst.

    4 W&I Business Unit Liaison
    1. Logs and controls the OAR,

    2. Provides the initial acknowledgement of receipt, and,

    3. Provides the ITIN Operation contact name and number to TAS within one to three workdays contingent on the expedite status of the OAR.

    4. Forwards the OAR with Form 3210 to the Functional Liaison in the ITIN Operation.

    5 ITIN Functional Liaison or assigned ITIN employee
    1. Maintains a log of the OARs received in the ITIN Operation.

      Note:

      All TAS cases should receive priority consideration.

    2. Reviews the OARs for completeness.

    3. Contacts TAS within 1 workday to secure missing information, if additional research or documentation is required, and negotiate the requested completion date.

      Note:

      If TAS cannot provide the information, return the OAR to TAS. Indicate the reason for reject in Section VI of the OAR. See IRM 13.1.7.

  6. TAS OARs are categorized by criteria codes. Criteria 1– 4 are Economic Burden and Criteria 5 –7 are Systemic Burden OARs. Expedite processing may be requested on any OAR regardless of the Criteria Code. No OAR will automatically receive expedite processing. Requests for expedite processing will be made on a case-by-case basis and will be based on the facts and circumstances of the taxpayer's case. TAS will generally request expedite processing of an OAR in the following cases:

    • Failure to take the specific action requested will cause the taxpayer economic harm or burden,

    • Extended delays have occurred,

    • Repeated IRS failures to resolve the problem have taken place,

    • The taxpayer is suffering significant health issues which may improve with earlier resolution, or

    • Time-frames or statute consideration necessitate that case issues be worked sooner.

  7. The ITIN Functional Liaison should provide a relief/no relief decision on OARs that are properly completed and marked "Expedite Processing" within three workdays of acknowledgement or receipt in the ITIN Operation. The ITIN Functional Liaison should provide a response on all other OARs by the time-frame indicated. If for any reason you are unable to meet these time-frames, you must contact the TAS case advocate listed on the OAR directly to negotiate a completion date. If a mutual agreement is not made, elevate to your manager. See IRM 13.1.19" TAS Operations Assistance Request (OAR) Process " for more information on TAS OARs.

  8. For those cases that meet TAS criteria and the tax return is already processed with an IRSN, complete ITIN application and enter "T-R-A TAS Return" in remarks field.

3.21.263.4.11  (01-01-2011)
Identity Theft

  1. Identity theft occurs when someone uses another's personal information such as their name, SSN, or other identifying information without their permission and commits fraud or other crimes.

  2. Identity theft situations are encountered when taxpayers call or write to indicate that someone is using their SSN, ITIN, or EIN.

    Note:

    More information on identity theft may be found on the IRS intranet at http://irweb.irs.gov/AboutIRS/bu/pipds/pip/itim/idtheft/default.aspx.

3.21.263.5  (01-01-2011)
Submission Processing Center (SPC), ITIN Operation Instructions

  1. This section of the IRM provides guidance and procedures for the ITIN Operations in the Austin Submission Processing Campus.

3.21.263.5.1  (06-18-2013)
SPC Program Reporting

  1. The following information will provide guidance to SP for reporting purposes and will include information on function, program, document codes, etc.

  2. Listed below are the function codes for the various ITIN Operations processes:

    • Clerical Function - 180 (Batching) and 790 (Other)

    • RTS TE - 380

    • Correspondence - 710

    • Secondary Review Team and Undeliverable - 720

  3. Form W-7 with return is processed under:

    • FLC 20 (Austin)

    • Program code: 33350

    • Tax class: 2

    • Doc code: 94

    • Julian Date XXX

    • Block Series XXX

    • Serial # XX

    • List Year X

  4. Form W-7SP with return is processed under:

    • FLC 20 (Austin)

    • Program code: 33350

    • Tax class: 2

    • Doc code: 92

    • Julian Date XXX

    • Block Series XXX

    • Serial # XX

    • List Year X

  5. Form W-7 without return is processed under:

    • FLC 20 (Austin)

    • Program code: 33250

    • Tax class: 2

    • Doc code: 94

    • Julian Date XXX

    • Block Series XXX

    • Serial # XX

    • List Year X

  6. Form W-7SP without return is processed under:

    • FLC 20 (Austin)

    • Program code: 33250

    • Tax class: 2

    • Doc code: 92

    • Julian Date XXX

    • Block Series XXX

    • Serial # XX

    • List Year X

  7. The following are also processed under Program Code 33250:

    • Correspondence White Mail

    • Correspondence-Form 4442 Only

    • CP Notices

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. Secondary Review Team work is processed under Program Code 33352.

3.21.263.5.2  (04-24-2014)
Clerical Instructions Overview

  1. The following sections provide guidance to the Submission Processing Receipt and Control Operations (RCO) ITIN Batching Function and the ITIN Operations Clerical Unit.

  2. The RCO ITIN Batching Function receives work from Receipt and Control Extraction, batches most work for ITIN technical review, adds inventory into RTS, forwards the inventory to ITIN Operations Clerical Unit and reroutes misdirected mail as appropriate.

  3. The ITIN Clerical Unit handles all incoming receipts to the ITIN Operation including Form W-7 applications and correspondence and they reroute misdirected mail as appropriate. They also are responsible for preparing some work for Technical Review (batching), stripping the work following technical review, and releasing the work into the pipeline and Files as appropriate.

3.21.263.5.2.1  (04-24-2014)
Receipt and Control Operations (RCO) Batching Function

  1. Incoming mail is opened, extracted and date stamped by Submission Processing RCO Extraction. The mail is then forwarded to the ITIN Batching Function of Submission Processing (RCO) for batching according to sort requirements.

  2. The incoming mail is labeled according to the following specific sorts:

    • Form W-7 with returns

    • Form W-7 without returns

    • Form W-7 (SP) with returns

    • Form W-7 (SP) without returns

    • Correspondence (White Mail)

      Note:

      White mail is unsolicited mail from the applicant. Examples include a letter indicating a change of name, date or birth correction, Form 8822, Form 4442, etc.

    • Undeliverables

    • TAC (Taxpayer Assistance Center)

    • Incoming Stop Mail

    Reminder:

    Any non-ITIN correspondence or forms such as state income tax returns must be rerouted to the appropriate area per the local routing guide.

  3. Original and/or certified copies of supporting identification documentation (ID) are placed in a single envelope (as determined locally) and securely associated to the related Form W-7 package. Take care to ensure the supporting ID is not damaged. For example, an original passport or certified copy of a birth certificate should not be stapled to other ID as the staple holes may damage the ID.

  4. Certain mail requires a secondary sort upon receipt. See the table below.

    RCO Secondary Sort Requirements
    Mail Type Sorts
    CP 566
    • Place notices in DLN order; stagger and staple together each family pack

    • Count the volume, limiting each box to 150.

    • Complete Inventory Sheet Box entries for box #, Julian date (IRS received date), count, English or Spanish, and sort categories. See Figure 3.21.263-1..

    • Attach inventory sheet to the front of the box.

    • Place for routing to ITIN Clerical

    • Identify each box as 1 of 3, 2 of 3, 3 of 3, etc., when sequenced CP 566 files more than one box

    Expedites (Form W-7 with Return with an IRS received date older than what is currently being worked by the ITIN tax examiners)
    • Batches should only contain applications meeting the Expedite guidelines

    • Sort and batch following normal batching guidelines except batches can have any number of applications up 25 (not required to have a batch of 25)

    • Check Expedite on the ITIN Batch Slip and place an expedite cover sheet on top of the batch folder

    • Place batches on the designated Expedite Batch Cart to be entered into RTS and placed on the next shipment to the ITIN Operation.

    Form W-7 with Returns New applications or applications received with CP 567
    Form W-7 (SP) with Returns New applications or applications received with CP 567
    Form W-7 without Returns New applications or applications received with CP 567
    Form W-7 (SP) without Returns New applications or applications received with CP 567
    TAC
    • Require a RED ITIN Clerical Received date stamp on all Form W-7 and attached correspondence, including CP notices, other IRS forms, etc. Do NOT stamp tax returns

    • Receipts contain mixed Julian dates and may include work considered as "expedites"

    • After date stamping and sorting expedites, place remaining work in a box with the cover sheet listing the contents as "TAC" with mixed dates. Notate the date and time the box was received from Extraction and the SEID of the clerk that completed the secondary sort.

    Undelivered Mail Correspondence returned as unopened with incorrect address
    White Mail (also known as CORR)
    • Correspondence received directly from the applicant or representative

    • CP 565, CP 567, and CP 574 notices without Form W-7 attached

    • Loose documents

    • Miscellaneous CP notices from other IRS departments

    • Tax returns without Form W-7 attached

  5. Receipts that do not require a secondary sort should be placed on the designated tower in Julian date order for clerks to immediately begin batching.

  6. Complete the elements of the Inventory Sheet as follows:

    • Box number should match the information in the Inventory Control

    • Julian Date is the IRS receive date

    • HUB Count is the volume of work (disregard all weight entries)

    • HUB Standard Employee Identifiers (SEID) is the SEID of the designated clerk

    • English/Spanish is the language of the type of Form W-7

    • Sort categories is the type of work being batched

    Note:

    Category "CP" is used only for CP 566. All others should be sorted as Correspondence (white mail).

    See Figure 3.21.263-1

    Figure 3.21.263-1

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

3.21.263.5.2.1.1  (04-24-2014)
Processing of Remittance Mail

  1. When a return and remittance are received with Form W-7 but no primary SSN is present on the return and cannot be determined, the payment is processed by the Accounting Function via Manual Deposit and assigned a Document Locator Number (DLN). Accounting attaches a copy of the check to the application so the payment may be correctly applied once the ITIN Operation has processed the application. This is known as remittance mail.

  2. RCO Batching Function will detach the check copy, fold in half, and re-attach to the front page of the related tax return (do not cover the entity section). A dollar sign ($) indicator should be present in the upper left corner of the return. If the dollar sign is NOT present, write one in the upper left corner of the return. When the batch is completed, put a dollar sign on the outside of the folder to identify the batch as including Remittance Mail.

3.21.263.5.2.1.2  (04-24-2014)
Received Date Stamp

  1. The date a Form W-7 is received in the Campus, Taxpayer Assistance Center (TAC), or other IRS site is the date stamped as the received date on the tax return. A received date should be present on all Form W-7, attached tax returns and correspondence when the work is forwarded from Extraction.

  2. When multiple receive dates are stamped on Form W-7 and/or tax return, the receive date is the earliest IRS receive date stamp.

  3. The red ITIN clerical stamp is not a Received Date Stamp. All Form 1040 require a red Form W-7 stamp in the lower left corner of the first page of the return.

  4. When a Form W-7 is received at a site other than the ITIN Unit then the receiving site will stamp their received date to the left of Line 6, Other Information, Form W-7.

  5. If the application and tax return is received at a TAC site, they will stamp the application and tax return with the date they received the application and attachments.

  6. If the received date is not present when the work comes from Extraction, refer to the following:

    If ... Then ...
    A received date is missing on Form W-7 but present on the tax return, Date stamp using the same date on an area of the document where the stamp does not obscure taxpayer data, for example lower left margin.
    A received date is missing on the return but present on the Form W-7, Date stamp the return with the same date as the Form W-7.

    Caution:

    Always stamp tax returns on the front of the return, half-way down on the left side.

    A received date is not available on the Form W-7 or the tax return, Determine and stamp the received date on the Form W-7 and tax return, using the following priority order:
    1. Postmark date on envelope

    2. Signature date

    3. Today's date minus 10 days

    Note:

    If the current year return was timely received (through 04/22/CY) and is being processed on June 4th or later, date stamp with a received date of 04/15/CY.

    Caution:

    Always stamp tax returns on the front of the return, half-way down on the left side. Keep ITIN received date stamps in a secured area with restricted access.

3.21.263.5.2.1.3  (04-24-2014)
Preparation of Batch for Technical Review

  1. RCO ITIN Batching Function prepares the work for delivery to the ITIN Operations tax examiners.

  2. The quantity in each batch of work depends on the sort. Local management or the ITIN Policy Section must approve any deviation.

    • Form W-7 /Form W-7SP: batch in quantities of 24

    • White Mail/Undelivered CP 565/CP 567/CP 569: batch in quantities of 50.

3.21.263.5.2.1.4  (04-24-2014)
Clerical Control of Work Received

  1. Upon receipt of the work in the batching area, clerks will prepare receipts for batching by grouping into the following types and programs outlined below:

    Note:

    English and Spanish applications must be separated before they are put into batches of 25.

    • Form W-7 without tax return

      Note:

      Includes Gaming Commission/Exception processing faxed applications from Acceptance Agents

    • Form W-7SP without tax return

      Note:

      Includes Gaming Commission/Exception processing faxed applications from Acceptance Agents

      Caution:

      Gaming Commission/Exception processing faxed applications from Acceptance Agents should be worked by ITIN Clerical. If received in RCO ITIN Batching, route immediately to ITIN clerical.

    • Form W-7 with tax return

      Note:

      If annotated "copy" sort as correspondence. The original Form W-7 should have been received and processed.

    • Form W-7 with statute tax return

    • Form W-7SP with tax return

      Note:

      If annotated "copy" sort as correspondence. The original Form W-7 should have been received and processed.

    • Form W-7SP with statute tax return

    • Form 4442, Inquiry Referral

      Note:

      All Form 4442 that are annotated "OFAC Status OFAC Coordinator" must be directed to the work leader. If received in RCO ITIN Batching, route immediately to ITIN Operations Clerical.

    • ITIN CP Notices - Suspense Correspondence (i.e., Response to CP 566, Form 14413 and Form 14415)

    • Correspondence/White Mail ( Includes Undeliverable Mail, response to ITIN Notices excluding CP 566, non-ITIN related notices and misdirected correspondence.)

      Caution:

      Route to the appropriate area (Hub) any mis-routed sorts or forms such as state income tax returns. Detach any Form 8857s, Request for Innocent Spouse Relief, and route to the appropriate area. Continue processing the Form W-7 application(s).

    • CI Cleared Applications

      Note:

      Only the Lead or designee in ITIN Clerical will batch and enter these cases into RTS.

  2. Stapling all related tax returns, correspondence and exception documentation to the Form W-7 is generally done by RCO Extraction. However, if it has not been done, RCO Batching Function is responsible for attaching the documents to the application.

    Reminder:

    Place original/certified copies of supporting ID in a single envelope and securely associate to the related Form W-7 package.

3.21.263.5.2.1.5  (04-24-2014)
Batching Process

  1. Batching is the process of preparing the work for review by the Tax Examiners. The work to be batched is found on towers or shelves in boxes. All ITIN receipts are worked on a first-in first-out (FIFO) basis. Designated Clerks assigned to batching begin with the box with the earliest Julian Date, as annotated on the Inventory Sheets.

    Reminder:

    TAC boxes have mixed Julian Dates. Be sure to identify the earliest Received Date and edit this date on the Batch Slip.

  2. A batch of work is defined as a group of 50 documents. Work must be maintained in a batch of 50 unless otherwise indicated in these instructions or an approved deviation

    Exception:

    Batch Form W-7/W-7(SP) in quantities of 25.

  3. Form W-7 may be attached to one single tax return or multiple tax returns and may be submitted as a single application or a family pack (related applications associated with a return). The table below outlines the treatment for batching purposes.

    If... Then...
    a single application submitted with a tax return(s), treat as a single application for ITIN processing.
    multiple applications, for different applicants, submitted with a tax return(s) treat as a family pack for ITIN processing. The family pack integrity must be maintained. Take the following steps to prepare a family pack for the Technical Unit:
    • Keep the family pack together and do not separate for any reason.

    • Determine whether the application is for the Primary, Secondary or Dependent taxpayer on the return(s).

    • If the family pack includes both Form W-7 and Form W-7 (SP)they will remain together. The Primary Form W-7 will determine the sort (English or Spanish) for batching.

    • Stagger family Form W-7 in ascending order with primary (or secondary if no primary) on top with remaining dependents in no particular order. Stagger so that multiple applications are apparent by having each Form W-7 visible. Tax returns should be attached and staggered in descending order with the oldest in front. Refer to Figure 3.21.263-2 below.

    • Supporting documentation must be placed behind the related Form W-7 for that particular applicant. Supporting documentation that does not match Form W-7, should be placed separately behind the Form W-7 applications.

    Figure 3.21.263-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  4. Form W-7 may be submitted without a return if the applicant is claiming one of five exceptions. These applications may have additional documentation to support the exception (Form 1042-S, Form 1098, Form 1099 Series, Form 8233, Form W-8 Series, Form 1065, etc.) Separate these applications into Form W-7 (English) and Form W-7 SP (Spanish). Whenever possible try to batch related applications in the same batch.

  5. Listed below are additional batching guidelines. Use all that are applicable to a batch while processing.

    No. Batching Guidelines
    1 Keep track of the volume and type of work (e.g., Form W-7 with returns, CP notices, etc.) that you batch to maintain batch count integrity.
    2 Expedite all batch sorts with a received date older than what is currently being worked on the Tax Examiner floor. Generally these are from other areas, such as TAC, or items needing to be re-batched. Check "Expedite" on the batch slip and place on a separate cart to be entered into RTS and delivered for priority handling to the Tax Examiner.

    Note:

    Expedite dates are posted daily and vary during peak processing time.

    3 Discovered Remittance: If at any time a remittance (negotiable check or money order) is discovered during batching, immediately bring the remittance and all related forms to your lead or manager for further processing. If the lead or manager is not available, place the application in the designated secured location. The lead or manager will check the designated secured location daily for remittances and take appropriate action. This includes remittances discovered with state returns.
    4 Statute Returns: These are Form W-7 cases received with statute 1040 tax returns. Batch these as "Form W-7 with return" or "Form W-7SP with return" and place on the "statute" cart for processing. Refer to IRM 3.21.263.5.2.3.10.
    5 Batch any Form W-7 marked as "second request" , "reference number/dln" , "copy" , or "duplicate" as correspondence.
    6 Batch any Form W-7 copy that is marked "CIS" (for Correspondence Imaging System) as a new receipt.

    Note:

    CIS copies do not require an additional date stamp. Use the date already present on the copy.

    7 Staple two or more Form W-7 for the same person together and count as one.

    Caution:

    Check the spelling of the name and birth date to ensure it is the same person.

    8 Foreign Investment in Real Property Tax Act (FIRPTA) related applications can be identified by the following:
    • Form 8288, Form 8288-A or Form 8288-B attached,

    • Reason box "h" is checked on Form W-7 and one of the above stated items is attached,

    • Exception 3 or 4 is noted,

    • Letter 3794 or Letter 3795 is attached,

    • Sales contract, property deed or other evidence of a real property purchase is attached.

    Place all FIRPTA related applications in the designated FIRPTA basket.

    Note:

    This includes FIRPTA cases pulled from the suspense wall for any reason.

    9 Staple multiple copies of the same return (i.e., tax year) for the same taxpayer together.

    Caution:

    Place Form 1040X on top if present. Edit all but the top return or one with original signature as "COPY" .

    10 Leave correspondence/CP Notices from other functional areas (CP 11, CP 12, CP 13, CP 14, CP 54, etc.) attached. These may be found behind the Form W-7.
    11 Remittance Mail - Boxes with remittance mail are generally labeled "With Remit $" . If a copy of a check with a DLN written on it is attached, then detach, fold in half and staple to the front of the first page of the corresponding return (do not cover the entity section of the return). There should be a $ sign on the upper left side of the return (if missing, add it). When the batch is complete, put a dollar sign ($) on the folder to indicate the check copies are present.

    Note:

    The DLN for checks is different than the DLN for ITIN Processing. The format for the Accounting DLN is 20000–000–00000–0. The first two digits represent the campus of origin (20 = Austin).

    12 Assemble the application package with the Form W-7 first, then attachments such as signature and disclosure authorizations (e.g., Form 2848, Form 8821, court papers) and IRS letters and notices from other departments.

    Reminder:

    Place original and/or certified copies of supporting ID in a single envelope and securely associate to the related Form W-7 package. Ensure the ID is not damaged by actions such as stapling it to the Form W-7.

    Caution:

    Supporting documentation may be located behind the tax return. If found, place behind the related Form W-7 for that particular applicant. If the documents are not related to any of the applications place behind the first Form W-7.

    13 If a return or attached statement is identified as "dual status" , attach "dual status" return in front of any attached return for the same tax year.
    14 Refer the following issues to your Lead for proper routing:
    • All credit or debit cards identified in the application package (e.g., Visa, Mastercard etc.), along with the application and all attachments

    • Form W-7A (Pertains to adoptions. Do not batch)

    • OFAC

    • Disclosure issues

    • Questionable documents

    • Form 3210 - If discovered while batching, verify that the document in question on Form 3210 is attached before signing and dating the form. Leads will ensure the acknowledged copy is mailed back to the originator and the file copy is returned to Extraction for maintenance.

  6. In addition to batching receipts of Form W-7, designated clerks will also batch correspondence which includes responses to ITIN notices (excluding CP 566), white mail (taxpayer inquiries or requests) and faxes. Refer to the table below for related batching guidelines.

    If ... Then ...
    CP 565 (ITIN Assign)
    • Date stamp

    • If Form W-7 is not attached or the application is for the person named on CP 565, then batch as correspondence.

    • If Form W-7 is attached for someone else, batch as a new application, Form W-7 with or without return. Put CP 565 behind the application.

    Note:

    If a letter is sent in with a CP 565 indicating a change is needed, then batch as Correspondence.

    CP 567 (ITIN Reject)
    • Date stamp

    • Batch as new application with/without if a Form W-7 application is attached. Otherwise batch as correspondence (white mail).

    • Assemble with Form W-7 on top, followed by COA or TAC information, correspondence, then the CP 567, then supporting documents.

      Reminder:

      Place original and/or certified copies of supporting ID in a single envelope and securely associate to the CP 567 reply. Ensure the ID is not damaged. For example, do not staple the ID to the related Form W-7.

    • Separate into with and without return.

    CP 574 (Hard Reject)
    • Date stamp

    • Batch as new application with return if a Form W-7 application is attached. Otherwise batch as correspondence (white mail).

    • Assemble with Form W-7 on top, followed by COA or TAC information, correspondence, then the CP 574, then supporting documents.

      Reminder:

      Place original and/or certified copies of supporting ID in a single envelope and securely associate to the CP 574 reply.

    Correspondence (White Mail)
    • Batch in quantities of 50

    • Date stamp

    • Pull out any state returns

    Responses to Form 14413 and Form 14415 Date stamp and batch as "white mail" .
       
  7. Form 4442 is an internal referrals entered on the RTS as Form 4442. A date stamp is required.

  8. Undeliverable mail is also entered on the RTS as Correspondence-Form 4442 only, but is handled differently depending on the type of item. Edit the Batch Cover Sheet as Undeliverable. Confirm undeliverable mail as undeliverable by checking the envelope for indications such as "return to sender" , "no better address" or similar annotation. When stamping, check the slip that comes with the mail for the Julian Date (slip has an envelope count and the Julian date). Refer to the table below for Undeliverable mail batching guidelines.

    If ... Then ...
    CP 565, CP 567, Forms 14413, 14415, 14433
    • Batch in group of 50. Do not separate into English/Spanish or CP type as all can be batched together.

    • Open and staple envelope to the back of the notice in the upper left corner with the yellow barcode/window of the envelope facing outward. Date stamp the notice.

    • Place each sort in a 2" brown folder, complete and attach a batch slip, check "Undeliverables" , contain (rubber band) and place on proper cart.

    CP 566
    • Date stamp and sort from other undelivered CP notices

    • Sequence in DLN order

    • Place in properly labeled box

    • Place on CP 566 tower for transshipping to ITIN Operations

    CP 574

    Note:

    Can be batched with CP 565 and 567.

    • Batch in group of 50. Do not separate English and Spanish.

    • Remove from the envelope and date stamp CP 574, all Form W-7 and tax return(s)

    • Assemble and staple with the CP 574 on top

    • Date stamp the envelope that contained the CP 574 and original documents and staple to the back of each notice( upper left corner with yellow barcode/window of the envelope facing outward.

    • Place each sort in a 2" brown folder, complete and attach a batch slip, check "Undeliverables" , contain (rubber band) and place on proper cart.

    Original Supporting Documents

    Note:

    Can be batched with Undeliverable CP Notices but include no more than 25 original documents in each batch.

    Reminder:

    Input the batch to RTS (see IRM 3.21.263.8.2.1. Print the Cart Inventory Control sheet and place on the cart.

    • Place in a single envelope (as determined locally) and securely associate to the undelivered CP notice or related ITIN form, such as Form 14433, and batch as usual. Date stamp the envelope.

    • Add the designated color card behind the batch slip and edit it with the words "Original Docs" .

  9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ applications are OFAC cases that have been cleared and are ready to be processed. Only the Lead Clerk or designee can batch.

  10. State returns are sometimes submitted in error with Form W-7 Application packages. Check behind all Form 1040 series returns for any state returns and remove all pages if found. These forms will contain the name of a state and generally vary in appearance. Keep all Form 1040 and related schedules and forms together. Do not write assigned ITIN numbers on state tax returns. Use the following guidelines for state returns received in the ITIN clerical function.

    If ... Then ...
    Only a portion of a state return is found, Detach and send out.
    There is only one copy of Form W-2 and it is attached to the state return, Detach from the state return and attach to the federal return.
    A live (negotiable) check found with the state return Follow batching guidelines for discovered remittances. See IRM 3.21.263.5.2.1.5.
    Other than state return Leave attached to Form 1040 (including envelopes)
  11. Secure a batch cart for each unique category which will hold up to 21 individual batches for the specific category. Take the following steps to complete each batch of 50.

    • Place a completed batch of 50 in a separate 2 inch folder (#6982), attach a completed Batch Slip to the short open side of the folder and secure (rubber band). The information required on the batch slip includes the volume, your SEID, Team Number, Batch Creation Date (the date you are batching), Earliest Received Date (determined by checking the dates on Form W-7 ), Batch category or type of work (only select information on the batch slip that is related to the type work being batched. Some sorts are not separated into English and Spanish). Refer to Figure 3.21.263-3;

    • Place folders on batch cart.

    Figure 3.21.263-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  12. Use the guidelines in the table below for end of shift work.

    If ... Then ...
    The box you have is empty, break it down and recycle for future use.
    The box you have is not empty, Complete the Inventory Sheet with your SEID and date and attach to the front of the box. Place the box back on the tower to be worked by the next available clerk.

3.21.263.5.2.2  (04-24-2014)
Adding Inventory to the ITIN RTS

  1. Both RCO clerical and ITIN Operations clerical follow these steps to add inventory.

  2. Fill out the color card of the day with the current date, volume, batch sort, Julian date and cart number. Tape it to the front left corner of the cart.

  3. Designated Clerks will enter the cart information into the RTS using the Inventory Tracking Input Screen, see IRM 3.21.263.8.2.1.

  4. Once the last batch of the cart is entered into RTS, check the Print Cart Inventory Control Sheet Box and click the Submit Button. Print the Cart Inventory Control Sheet, IRM 3.21.263.8.2.6, and attach to the cart.

    Figure 3.21.263-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  5. After the Cart Inventory Control Sheet prints, close the window and the Inventory Tracking View Screen will be present, IRM 3.21.263.8.2.2. Click on the print button and it will generate the Batch Cover Sheets for the entire cart. In the upper left corner of the screen, click "file" and select print from the drop-down menu in order to print the Batch Cover Sheets. The Batch number is printed vertically on the left side of the Batch Cover Sheet and has specific elements that help identify the batch. Attach each Batch Cover Sheet to the corresponding slot folder.

    Figure 3.21.263-5

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

3.21.263.5.2.3  (04-24-2014)
ITIN Operations Clerical Process

  1. This section provides instructions for the ITIN Operations Clerical Function.

3.21.263.5.2.3.1  (04-24-2014)
Control of Work Received

  1. ITIN Operations receives work daily from Submission Processing Receipt and Control Operations (RCO) in locked and sealed dedicated trucks. Scheduled runs are at 6:30 a.m. and 1:30 p.m. During peak season, an additional truck may be scheduled at 5:30 pm.

    Note:

    The truck has a tie lock that only authorized individuals (leads and managers) may remove. If ITIN Operations is sending work on the truck, replace the tie lock on the truck before the truck leaves. The authorized individual will then enter the outgoing tie lock number on the common drive. See the lead or manager for the location of this drive.

  2. Incoming work consists of:

    • Batch carts

    • Towers of boxes of CP responses (CP 566 and Undeliverable CP 566)

    • Baskets of inter-office mail

  3. Batch carts consist of up to 21 file folders containing:

    • Correspondence

    • Expedites (give these to an authorized individual)

      Note:

      Expedites are Form W-7 applications with a Julian date older than what is currently being worked in ITIN Operations. The expedite folder(s) may be placed on top of a batch cart and flagged with an 8X11 red paper. If a large number of expedite batches are present, they may be on a separate cart.


    • Form W-7 with returns

    • Form W-7 SP with returns

    • Form W-7 without returns

    • Form W-7SP without returns

    • Undeliverable CP 565, 567, 574

  4. Incoming batch carts contain:

    • Clipboard with the inventory log

    • Tax examiner batch check out log

    • Completed 10194 card in the color corresponding to the day of the week the card was put into inventory

    Note:

    The inventory cart log will be placed in a clear pocket in one of the blue cart covers. This log is used to indicate the carts received on the truck. If any of the items are missing, inform an authorized individual to contact batching to have corrected.

  5. The clerk checking in the batch carts must:

    • Remove the blue cart covers from each cart. Fold the covers and lock the hooks together and place on the appropriate tower.

    • Check the 10194 card to ensure the correct color is used and that the information written is correct. If the color card is incorrect, get a correct color 10194 card and write the correct information on it. Inform the lead or manager and they can make batching aware of the error.

    • Check each folder to ensure it is in the correct cart. If the incorrect work is sent, inform the lead or manager to have the cart sent back to batching.

    • Compare the copy of the cart inventory control log with the carts received.

    • Place a check mark and include your SEID and date on the inventory control log in the section provided to indicate that you verified the information is correct.

    • Punch three holes in the inventory control log sheet and place in the front section of the inventory control log book.

  6. If all the information on the batch carts is correct, the clerk will:

    • Tape the 10194 to the upper left corner of the batch cart (near slot 1)

    • Attach the correct flag that coordinates with the program on the rear right side of the cart using large binder clips: Correspondence cart, red flag; Expedite cart, black and white checkered flag; Undeliverable cart, red flag; W-7 with card, green flag; W-7 without cart, orange flag

    • Place the clip board on the top of the cart. Make sure the tax examiner and clerical sign out sheet is attached.

    • Move the cart to the correct staging location and place in Julian date order and then cart number order.

  7. Once the cart is in the staging area, the clerk then processes the CP and Undeliverable Towers as follows:

    • Removes the plastic wrapping from the tower

    • Arranges the boxes by type and then Julian date

      Note:

      Some boxes may have mixed dates. Place these last within their type sort.

    • Counts the CP and/or Undeliverable boxes.

    • Logs the boxes into the Extraction log book

    • Transports the boxes to the Suspense Wall and places on the corresponding shelving unit.

  8. If any inter-office mail is also on the tower, the clerk disperses it to the correct teams. They also pick up any out going mail or tax examiner corrections from the teams.

3.21.263.5.2.3.2  (04-24-2014)
Batching Function

  1. ITIN Clerical receives most ITIN mail already batched from the RCO ITIN Batching Function. The mail described below is routed directly to ITIN Clerical for batching by ITIN as shown in the table below:

    If ... Then ...
    Responses to Form 14413 and Form 14415
    • Pull associated case from the suspense wall

    • Check DLN and name for correct match

    • Staple to suspended case

    • Batch in quantities of 25

      Note:

      If no response is received within 65 days, flag for lead to process as R 99.

    Faxes
    • Received date is the date on the top of the fax and a date stamp is not required.

    • Batch as correspondence

      Exception:

      Form 4442 has its own category

    • New Form W-7 applications received by fax are not accepted. Mail a local letter back to the mailing address on Form W-7 advising the applicant that the faxed application is not acceptable. The faxed application may then be classified.

      Exception:

      Faxed applications from Gaming Commissions (casinos) are accepted. Place in basket to be worked by designated area.

    • Refer Form W-7 with Form 1040-C received from TAC offices to your Lead/Manager to be delivered to the designated group for expedite processing

       
       
  2. Batch ITIN Suspense Notice CP 566 separately from other ITIN notice responses and enter on RTS as CP Notices. Date stamp CP 566 inventory and separate by Form W-7 with/without return and expedites. The related application has been:

    • Pulled from the Suspense wall (check DLN and name to ensure a match with the CP 566)

    • Associated (ensure supporting documentation is associated to the correct CP 566)

    • Placed on the batching tower

    Additional sorting guidelines for batching CP 566 are as follows:

    If ... Then ...
    CP 567 is attached with the same DLN and a more current date, CP 567 takes priority.
    CP 566 is part of a family pack and the other members of the family pack are in status other than suspense (CP 565, CP 567 etc.) CP 566 takes priority as it will need to be pulled from the suspense wall.
    CP 566 is part of a family pack and the CP 566 is marked as undeliverable, Remove the family pack from the batch.

    Note:

    If the family pack consists of both regular and undeliverable CP 566, then batch as regular.

    CP 566 does not have a DLN Place at the end of the batch or in several batches if a large volume. This requires research by a tax examiner.
    CP 566 DLN begins with a "98" This refers to a Philadelphia case and will not be on the suspense wall. Place at the end of the batch prior to CP 566 notices without a DLN.
  3. Batch CP 566 notice responses as follows:

    • Using the Suspense Log Book, sign out a box of CPs to be batched

    • Ensure supporting documentation is associated (pulled from the suspense wall) to the correct CP 566 (check the DLN and name to ensure it matches the CP 566 letter)

    • Batch in groups of 25

    • Place in a 2 inch folder with the batch slip marked “undeliverable”, write CP 566, and edit the earliest Julian date

    • Add the designated color card behind the batch slip and edit the word “undeliverable” to distinguish it from regular CP 566 inventory

    • Place any notices with a DLN beginning with “98” behind the other notices in the batch (these will not be on the suspense wall)

    • Separate Form W-7 with and without returns

    • Complete Inventory Sheet (see Figure 3.21.263-1).

  4. Form 4442 is an internal referral entered on RTS as Form 4442. Form 4442 can be received in paper or fax form. Most Forms 4442 are faxed directly to the ITIN Tax Examiner area and they batch the Forms 4442. Date stamp paper Forms 4442 and batch as “correspondence”.

  5. Secure a batch cart for each unique category which will hold up to 21 individual batches. Follow the steps in the table below to complete each batch.

    Step Action
    A
    • Place a completed batch in a separate 2 inch folder (#6892)

    • Attach a completed batch slip to the short open side of the folder and secure with a rubber band.

    • Complete the batch slip with the volume, your SEID, team number, batch creation date (date you are batching), earliest received date (check dates on Forms W-7), batch category or type of work. See Figure 3.21.263-3 "Batch Slip”

      Note:

      Only complete line entries on the batch slip that are related to the type of work being batched. Remember that some sorts are not separated into English and Spanish.

    B Place folders on a batch cart.
    C Fill out the color card of the day with the current date, volume, batch sort, Julian date, and cart number. Tape it to the left corner of the cart.
  6. Follow the steps in the table below for end of shift work:

    If ... Then ...
    The box you have is empty, Remove the completed CP Box Slip and place it in the Completed CP Box Slip tray. Break the box down and recycle for future use.
    The box you have is NOT empty, Return the box to the tower to be completed by the next shift.

3.21.263.5.2.3.3  (01-01-2015)
Runner Duties

  1. Designated clerks in the Clerical Units control the flow of incoming and outgoing mail. The designated clerk for each clerical unit is called the “runner”. The runner’s duties include the responsibilities in IRM 3.21.263.5.2.3.1, Control of Work Received and the following in the table below:

    Responsibilities
    Sorting truck deliveries and distributing mail to the appropriate areas. Truck deliveries at 8:00 a.m. 10:00 a.m., 12:00 p.m., and 2:00 p.m. bring mail, baskets, and/or boxes of miscellaneous items.
    Walking through the clerical area and the tax examiner area at least every 3 hours to distribute and pick up work
    Picking up documents from the top of the desks in the clerical sorting desks. Follow these steps:
    • Place documents for returning to a tax examiner on the runner cart in the appropriate slot

    • Deliver documents for filing on the suspense wall to the appropriate basket in the suspense wall area.

    • Deliver OFAC, CI Referrals, PTID, FIRPTA, statutes, route outs, and R98’s to the appropriate area(s).

    Walking through the tax examiner area and picking up mail that is being returned to the clerical unit while also delivering documents being returned to the tax examiners

    Note:

    A “runner cart” is used to deliver mail. The cart has a labeled slot for each tax examiner team for documents being returned to that team.

    Performing a quick sort of all documents picked up from the tax examiner teams. Do this by sorting through and pulling out the following documents and taking to the designated area:
    • Outgoing Mail (put in the shipping and receiving tower for outgoing mail)

    • Cases needing status sheets (put in baskets by computers)

    • 1040’s for routing to the pipeline (give to the Lead to distribute)

    Preparing blue cart covers for sending to Submission Processing (SP) as needed
    Sending empty carts back to SP as needed

    Note:

    During peak season when 2 clerical teams are in place, each team will designate a runner. The lead or manager designates the times for completing the runs.

  2. When the work leaves the initial ITIN clerical point known as the shipping and receiving area (previously called the HUB), it is placed in the CP batching area or the tax examiner staging area. The person working the shipping and receiving area is responsible for duties listed in IRM 3.21.263.5.2.3.1, Control of Work Received, as well as the following

    Responsibilities
    Picking up all outgoing mail from the management assistant’s (MA) offices at 6:00 a.m. and 1:00 p.m.
    Reviewing the bundles of work located in the baskets on the tower in the shipping and receiving area. Baskets may include the following bundles that can be sent out:
    • Annotated returns

    • - Copies of remittance (handled only by a designated work leader)

    • Domestic with/without remit

    • Envelopes domestic/foreign

    • Internal & interdepartmental mail

    • International with/without remit

    • IRSN (or primary) reject with/without remit

    • Re-files and attachment alerts (can be combined)

    • Re-files with tax returns

    • State returns

    • Statute returns

    • 1040X domestic

    • 1040X foreign

      Note:

      The basket includes bundles of 50 as well as smaller bundles. It is not necessary to combine smaller volume bundles.

    Preparing the items for shipment by:
    • Removing the bundles from each basket on the Release Tower.

    • Verifying the type of work that is circled and the volume indicated on the cover sheet.

    • Recording the total number of each bundle being sent out on the Release Tower log.

    • Placing items being sent to RCO Batching on a batching cart (large volumes of work).

    • Gathering individual or multiple bundles going to the same destination, placing in individual boxes, and then placing on a tower

    • Attaching a routing slip with the appropriate destination (stop number) to the cart or on each box

    • Placing a blue cart cover on the batch cart

    Wrapping each tower with the clear plastic wrapping.
    Taking the Release Tower log to the lead, manager or authorized individual to be entered into the daily report.

    Reminder:

    If more towers are needed, notify the lead or manager.

3.21.263.5.2.3.4  (04-24-2014)
Handling of Batch Cart After Technical Review

  1. Following technical review, ITIN Clerical Unit has additional processing steps that must be completed which include:

    • Printing Status Sheets

    • Stripping the work

    • Sorting the work

    • Releasing the work

  2. This section provides guidance for the clerical staff after assignment of the initial Form W-7 status and completion of the batch by the technical area.

3.21.263.5.2.3.5  (04-24-2014)
Printing the ITIN RTS Status Sheets

  1. After Form W-7 is processed on the ITIN RTS, a final status is assigned to each application. The status information and associated DLN appear on the related Status Sheets that are generated by RTS and are printed by designated clerks and associated with the application. The following information provides guidance on printing and associating the Status Sheets from RTS.

  2. Access the batch via RTS using the Inventory Tracking Search Screen, IRM 3.21.263.8.2.4, using the batch number as the primary search criteria. Click Submit. When a search result is generated, click on the view link in the search results table to be directed to the Inventory Tracking View Screen, see IRM 3.21.263.8.2.2. Go to the "Reason for Change" field. If Batch Quantity is different from Batch Quantity Completed, select Batch Quantity and click the Edit Batch button. Change the quantity and click Submit. Continue with (3) if printing all of the status sheets for a batch. If printing a single status sheet, go to file and select "Print Preview" . Click on the arrow keys to view each status sheet. Click the "Print" button to print. If only printing the current page, select "Current Page" on the page range menu and then click print again. If printing more than one page but in consecutive order, select "Pages" on the page range menu, enter the page number range (e.g., 15-20) and click "Print" .

  3. If the Batch Quantity is the same as the Batch Quantity Completed, select "Batch Print" and then click the "Edit Batch" button.

  4. Click on the Print button. The Final Status Sheets will generate.

  5. On the upper left corner of your screen, click File and select Print to print the Final Status Sheets which completes the batch in RTS.

    Reminder:

    Before printing the Final Status Sheets, ensure the footer has been deleted in Page Setup.

3.21.263.5.2.3.6  (04-24-2014)
Stripping Process

  1. Sign out a batch from the stripping cart and enter your SEID and the time you remove the batch on the stripping log that is located on top of the cart.

  2. Batch numbers are printed on the Batch Cover Sheet that is attached to the folder. Verify that the status sheets that are attached belong to that batch before continuing with processing. The batch number is an eleven digit number that is comprised of the following elements:

    1. Position 1-3, Julian Date

    2. Position 4-5, File location, i.e., 20 =Austin

    3. Position 6-8, Batch Cart Number

    4. Position 9-10, Slot Number

    5. Position 11, Year

    Note:

    If you get a batch without status sheets, keep everything together in the folder and give to the lead. The batch will need to be reprinted.

    Note:

    Prepare 2 folders for each batch:

    • One 2″ folder for assigned/rejected Forms W-7

    • One 1″ folder for suspended Forms W-7

  3. Associate each Final Status Sheet to the corresponding application by comparing the DLN, first and middle name and date of birth printed on the Final Form W-7 Status Sheet with the application. If any listed item is not verifiable, prepare TE Action Sheet and return to TE for verification. Place in the corresponding batch folder and load onto the stripping cart for required stripping action.

  4. Continue with stripping the applications in the batch. Refer to IRM 3.21.263.5.2.3.7 for required action based on the final status of the application and IRM 3.21.263.5.2.3.8 for additional clerical stripping guidelines.

  5. Once the batch is stripped, place all files containing assigned and rejected Form W-7 applications with attached status sheets in DLN order in a 2 inch folder and files containing suspended applications in a 1 inch folder in DLN order.

    Note:

    Each batch requires a file folder.

  6. Use the table below for specific guidance on preparing the file folders.

    If ... Then ...
    Assigned/Rejected Applications (2 inch folder)
    • Write the DLN on the short side of the folder in the "lip" area using the designated color marker as follows in the example : 20/294/000/000 (without the last three numbers).

      Caution:

      If you make a mistake when writing this information, do not write over, scratch out or cover with white-out. Re-do the entire 2″ folder.

    • Detach the batching slip and write your SEID number there on the folder.

    • Send applications with status sheets that do not match the DLN's in the batch to Files.

      Note:

      These applications will not be in a folder, as they are now re-files.

    • Place all the assigned/rejected Forms W-7 in individual DLN order. Do not keep family packs stapled together.

    Suspended Applications (1 inch folder) Use the batch cart inventory card (10194) to determine the color of the suspense folder.
    • Write the DLN (minus the first and last 3 digits) from the status sheet vertically on the left side of the card; and

    • Print your SEID on the right side of the card

      Caution:

      If you make a mistake when writing this information, do not write over, scratch out or cover with white-out. Re-do the 1″ folder.

    • Align the card with the "lip" on short side of the folder so it is visible on the wall. Staple the card at the top and bottom of the folder.

    • Place multiple suspense cases in DLN order.

      Exception:

      If a family pack suspends, keep it staggered and stapled together in this order: suspended Forms W-7 first, assigned/rejected Forms W-7 behind them, and leave tax returns and Form 2848 attached where they are.

    • Pull any suspense case that does not match the DLN sequencing of the batch being worked. If a family pack has suspended cases with DLN's out of sequence, refer to your Lead for a DLN cross reference.

  7. Return your folders to the cart and place in the appropriate slot along with any envelopes, copies of remittances, all 1040 sorts, re-files, Form 9856 and state returns.

    Note:

    Place all corrections on top of your desk to be picked up by the designated clerk.

  8. Attach a Tax Examiner Action Sheet (include batch number) to any Form W-7 without a corresponding status sheet. Be sure to keep everything together in the application package.

  9. Sign the log indicating that the batch is completed and the time returned.

  10. Designated clerks will move the completed cart from the stripping area to prepare for sorting.

3.21.263.5.2.3.7  (01-01-2015)
Final Status Determination Used in Stripping Process

  1. Stripping action for each application is based on the final status of Form W-7.

  2. The table below will define the necessary steps for the clerical staff after the Final Form W-7 Status Sheet is printed and associated to the Form W-7.

    Caution:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

    Do not separate application packages with the purple Patterns and Trends Identification Desk (PTID) referral form. Attach a cover sheet with the day's date and daily hand walk the entire package (Form W-7s, tax returns, ID, envelopes and entire family pack) to the PTID basket on the PTID station. The PTID will review the work and return it to the box. Remove, separate, and release this work one business day after placing it in the box.

    If Final Status Page is... Then...
    Assigned An ITIN is assigned;
    • Ensure that each assigned Form W-7 or CP 566 has a final status sheet printed for it.

    • Ensure that the ITIN is edited on all tax return(s), external CP notices, items for internal routing such as Form 2848 Power of Attorney and Form 3949, Information Report Referral), etc., in the applicable TIN area(s), and on check copies prior to separating from Form W-7s.

      Note:

      Identical copies of tax returns should be annotated "COPY" and attached to the original tax return.

      Caution:

      All persons listed on the tax return must have either a TIN (i.e., ITIN, SSN) or "ITIN Reject" edited next to their name (excludes suspense status applications). If neither is present check to see if a Form W-7 is attached for that individual and if found, edit the appropriate information. If Form W-7 does not exist for that individual, the Tax Examiner should have edited "No Form W-7" next to the name. All Form W-7 / tax return annotations should have been completed by the Tax Examiner. If Tax Examiner actions were not completed and annotated properly, pull from the batch, complete Tax Examiner Action Sheet, and place on your desk for pick up and correction.

    • If return is a prior year or CY after 04-23, ensure Form 3471E is attached with RPD edited on line 4. See IRM 3.21.263.5.10.6 for RPD criteria.

    • Detach applicant's envelope, if present, and attach to the tax return without a double date stamp. If multiple tax returns are present, ensure the envelope is attached to the oldest tax return year.

      Caution:

      Attach any proof of income (Form W-2, paystubs, bank statements, etc.) to the applicable tax return year.

    • Pull all returns flagged for ACTC amounts claimed and place in the designated box for Examination to review. Once reviewed by Examination, release the returns for pipeline processing.

    • Detach the check copy if it includes an Accounting DLN and an ITIN and route to the Accounting Function.

    • Detach Form 3949 and route to the area indicated in lines 9-14 per the Austin Mail Routing Guide.

    • If working correspondence with several associated DLNs, attach the final status sheet to the first DLN and letter. File the remaining family status sheets directly behind the first DLN.

    • Forward Form W-7 with all attachments (copies of ID, etc.) to Document Retention (Files).

    Suspended The application is in suspense status;
    • Do not detach tax return(s) unless final TIN disposition is noted for all parties listed if part of a Family Pack. Keep all Form W-7 associated with the Family Pack with the suspended case regardless of their current status. Maintain in DLN sequential order for filing on ITIN suspense wall.

    • Staple Form 3471 to the back of each tax return attached to suspense cases. Staple so that Form 3471E faces upward when the tax return is turned over.

    • Leave any check copies attached to the application until the primary ITIN is either assigned or rejected.



    Prepare folders for the suspense wall as follows:
    • Write the DLN on Form 10194?, Program and Sequence Batch Identification Card,

      Note:

      The question mark (?) represents an alpha character for each color associated to the Program and Sequence Batch Identification Card. These colors assist the clerical unit in controlling work based on what color representing a specific time frame. (e.g., Form 10194D is a green card that represents all applications placed on the suspense wall which correspond with a Thursday Julian Date).

    • Staple Form 10194? to the brown folder (Doc 6982).

    • Place applications with all associated documents in the folder including original identification documents.

      Caution:

      Family packs will remain stapled together, even if only one application in the pack is suspended. All family pack applications, associated to a valid tax return, will be stapled to the tax return in DLN order with suspended applications first followed by assigned and rejected applications. If multiple tax returns are in the family pack and some have either a Form W-7 disposition other than suspense status (i.e., ITIN Reject, No Form W-7) or an assigned ITIN for all listed parties on the return, pull and forward that return for processing. Otherwise, Clerical will be responsible for assuring that the integrity of the family pack stays intact. Form W-7 are staggered in ascending order with the tops of each Form W-7 showing. Form 1040 are staggered in descending order with the bottom of the Form 1040 visible.

      Note:

      Folders flagged for 65 day purge must have the purge date computed as 65 days from the date of suspense status. Mark the flags with the purge date and place the folders so that the flags are visible.

    Rejected The application is in reject status

    Note:

    Until further notice, sort all R 98 cases in DLN order to await replies.

    • Ensure that every rejected Form W-7 or CP 566 has a final status sheet printed.

    • Ensure that "ITIN Reject" is edited on all tax return(s), Forms 2848 and check copies in the applicable TIN area(s), prior to separating from Form W-7s.

      Note:

      When rejecting a primary, or a secondary (with Schedule SE) applicant, the applicant's DOB should be edited in the upper right margin of the return if the return is to be processed and requires routing to Entity for IRSN assignment. Returns intended for Files (NOT to be processed) will be stapled to the back of the Form W-7.

      Caution:

      All persons listed on the tax return must have either a TIN (i.e., ITIN, SSN) or "ITIN Reject" edited next to their name (excludes suspense status applications). If neither is present, check to see if a Form W-7 is attached for that individual. If Form W-7 does not exist for that individual, the Tax Examiner should have edited "No Form W-7" next to the name. All Form W-7 / tax return annotations should have been completed by the Tax Examiner. If Tax Examiner actions were not completed and annotated properly, pull from the batch, complete Tax Examiner Action Sheet, and place on your desk for pick up and correction.

    • Detach applicant's envelope, if present, and attach to the tax return without a double date stamp. If multiple tax returns are present, ensure the envelope or a copy of it is attached to each tax return that does not have an IRS received date.

    • A Suspense Duplicate is a confirmed duplicate Form W-7 received in the ITIN Operation where the original application is already in Suspense status. This duplicate application is assigned a status of Reject. A cover sheet annotated with the DLN of the related Suspense case will be attached. Keep all of the documents in the pack intact and associated the related status sheet. Place in the Suspense Duplicate basket to be associated with the suspended application on the wall.

      Caution:

      Original supporting identification documentation must stay attached to the Suspense Duplicate application even if in an envelope.

    • Forward Form 3949 as indicated in lines 9 through 14 per the Austin Mail Routing Guide.

    • Forward Form W-7 with all attachments (copies of ID, etc.) to Document Retention (Files).

    • Forward returns with DOB edited next to the primary or secondary applicant's TIN box to Entity.

    Hard Reject (CP 574) The application is in Hard Reject status;
    • Form W-7, documents, and the tax return will be in an envelope prepared by the Tax Examiner.

    • The Final Status Sheet will indicate "Hard Reject" and all applications in this status will have a CP 574 Notice. Associate each notice to the correct Form W-7 and place on top of the notice.

    • Since these applications are returned to the applicant, nothing should be written (DLN, status indicators- R 17 etc.) on Form W-7 or the tax return. Date stamps should be circled out. These actions should have been completed by the Tax Examiner. If Tax Examiner actions were not completed and annotated properly, pull from the batch, complete Tax Examiner Action Sheet, and place on your desk for pick up and correction.

    • Return CP 574, Form W-7 and tax returns to the envelope (Family packs will be placed in one envelope for Hard Reject Applications).

    • Take the status sheet (nothing attached) and put in DLN order with the other Status Sheets in the batch.

    OFAC The application is in OFAC status
    • Pull the application and tax return from the batch. If family pack, include all applications, documents and tax returns in the family pack. Clerks should not strip OFAC applications. Refer OFAC application(s) to your lead/manager to be forwarded to designated OFAC Status Coordinator

    • Do not remove supporting documents that have been placed in an envelope by the Tax Examiner.

    • Refer to IRM 3.21.263.5.2.3.14 for further processing information.

    Pending The application is in pending status;
    • When printing the final status sheets, sometimes the first page printed is a list of pending Forms W-7. Place listing on top of the batch folder and give to the lead to return to the tax examiner's team lead.

    • Pending status applications are incomplete and must be worked by the Technical Unit before a batch can be completed.

  3. Cases in R99 status are pulled daily from the Suspense wall and placed on a cart for stripping. Sign out one batch at a time by listing your SEID, the time and your team number. Process final status Reject R99 pages as follows:

    • Annotate “R 99” in red ink in the top left corner of the application on the Final W-7 Status Screen page. Circle out any other status codes present.

      Note:

      the status screen previously showed the Suspense Status

    • Stamp or annotate "ITIN Reject" in the TIN area of any attached return next to the applicant's name. If the applicant is the Primary and/or the secondary (only if Schedule SE attached is for the secondary), write the D.O.B. along the right side of the return in the MM/DD/YYYY format.

    • If Form 2848 or Form 8821 is not edited with the"ITIN", "ITIN Reject "or "No W-7" in the TIN area, edit before stripping.

    • Attach Form 3471E (Edit Sheet) only to R 99 applications from rejected dependents where the return requires a RPD. Edit the R 99 report date as the RPD onto Line 4 of Form 3471E only for returns being sent to processing.

      Note:

      SeeIRM 3.21.263.5.10.6

    • Gather all of the envelopes and place the tax returns on top followed by :

      • Copies of remittances, then

      • Form W7, then

      • Form W7 with tax returns going to Files, then

      • State returns

    • Count all Forms W-7

    • Return batch to the R 99 stripping cart. Enter your completed time and the count of your batch in the cart inventory log.

  4. For R 99 cases, process rejected Form W-7 primary or secondary applicants returns as follows:

    If Primary or secondary applicant... Form W-7 has ... Return has ... Then ...
    Rejects for not validating their identity, Unsatisfied identity suspense codes written in the bottom center of Form W-7, and Been flagged to indicate it should be routed with Form W-7 to Document Retention Staple return (both balance due and refund returns) to back of Form W-7 for sending toDocument Retention. Do NOT process return.

    Exception:

    If either primary or secondary has a valid TIN and income, route the return to the pipeline for processing.

    Validates their identity but rejects because is NOT eligible for an ITIN, "N/A" is written in the bottom center of Form W-7, and
    • "ITIN REJECT" in TIN box

    • DOB written next to TIN box

      Note:

      edit secondary applicants only if their Schedule SE is attached)

    Route return to Entity for IRSN
    Rejects for not satisfying S-50 "S-50" is written in the bottom center of Form W-7, and Been flagged to indicate it should be routed with Form W-7 to Document Retention, Staple return (both balance due and refund returns) to back of Form W-7 for sending to Document Retention. Do NOT process return.

    Exception:

    If either primary or secondary has a valid TIN and income, route the return to the pipeline for processing.

3.21.263.5.2.3.8  (01-01-2015)
Additional Stripping Guidelines

  1. Listed below are additional stripping guidelines for the Clerical Unit.

    If ... Then ...
    Original supporting identification documentation or copies certified by the issuing agency are attached, Remove envelope(s) containing the documents and Form 14433 if the application (all applications in a Family Pack)status is Assigned, Rejected (Not R 06), or Suspended for other than QID or W-2 name mismatch issue. Compare the envelope address to Form W-7 and ensure the address is correct. Forward the unsealed envelope containing the original/certified ID copies to sorting.

    Exception:

    If the envelope is labeled "Family Pack ID" , complete the local tax examiner action sheet to return the envelope to the tax examiner.

    Note:

    Applications in suspense status due to QID or Form W-2 name mis-match issue are identified by the attachment of Form 14433 to the outside of the envelope. Envelopes containing documents for applications suspended for QID or Form W-2 name mismatch issue will remain with the application(s) during the suspense period..

    Form 9856, Attachment Alert is present, Detach for routing to Document Retention (Files).
    An addressed envelope containing a completed Form 14413 with original or certified copies of ID is present, Remove envelope containing the original/certified copies of ID and Form 14413. Compare the envelope address to Form W-7. Forward the unsealed envelope to sorting.
    A completed Form 14415 is present and attached to an addressed envelope containing an original passport, Remove envelope containing the original passport. Place completed Form 14415 inside envelope with original passport. Compare the envelope address to Form W-7. Forward the unsealed envelope containing the original passport with Form 14415 to sorting.
    Loose Income Substantiating Document(s) are received after the tax return has been released to the pipeline, Route document(s) to Document Retention (Files).
    Check copies for applications with assigned ITIN for the Primary is annotated,

    Note:

    Do not detach if Primary is in Suspense or Reject Status.

    • Return should have a dollar ($) sign on upper left corner. If missing, annotate.

    • Detach for routing to the Accounting Function only if the Primary has been assigned and there is an Accounting DLN on the remittance. If no Accounting DLN, attach copy to the back of tax return.

    Discovered Remittance (Live negotiable check) Bring remittance and all related forms to a lead/manager. The lead/manager will complete the appropriate remittance paperwork and then place in designated remittance collection box for processing and routing by the remittance coordinator.
    Form W-7 edited as W-7A are present, Detach for routing to the Adoption Taxpayer Identification Number (ATIN) Unit in Austin at Stop 6182.
    Any correspondence flagged for referral is present, Detach for routing to appropriate areas
    A merge action request (i.e., ITIN to ITIN, IRSN to ITIN, or ITIN to SSN) is identified on the stripping cart, Detach and place in the designated box for merge action requests with a cover sheet.
    A state return (including a portion) is still attached, behind the 1040,
    • Detach the state return. These returns will be sent to the appropriate state for processing.

    • If there is only one copy of Form W-2, Detach from state return and attach to federal.

    • Follow Discovered Remittance procedures for live checks.

    Form 8822, Detach and route to Entity for processing (using the Austin Campus Routing Guide)
    Form 13350 (Registration for e-services) is attached,

    Note:

    An ITIN or "ITIN Reject" must be edited on Form 13350.

    Detach and refer to lead, unless the application is in Suspended status, then it will remain attached. Leads will ensure all Form 13350 are in a designated central location to be retrieved daily by 2:00 p.m. CST by the Electronic Tax Administration (ETA) function. If forms are not retrieved, route to Austin Campus, Mail Stop 1265 -AUSPC, Attn. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Any application contains documents (Form W-7, CP 566, etc.) with different DLNs, Place the Status sheet for the most current application on top and related sheets behind it.
    All Form W-7 applications associated to the same tax return(s) have a final status (Assigned or Rejected) and Form 3471E is attached to the back of the tax return(s) that require Form 3471E. See IRM 3.21.263.5.10.6

    Reminder:

    Returns not to be processed are stapled to the back of Forms W-7.

    Ensure RPD is edited on Line 4 of each 3471E prior to separating the tax returns. If the Tax Examiner actions were not completed, pull from the batch, complete Tax Examiner Action Sheet, and place on your desk for pick-up and correction.

    Note:

    Refile the Family Pack if any applications are still in Suspense status. Form 3471Es attached to tax returns being filed to the Suspense wall should not have any annotation on Line 4.


    Forward any Form W-7(s) in final status with all attachments (copies of ID, etc.) to Document Retention (Files).
    Any form that has a daily flag (as determined by local management). Give to your lead for handling.
  2. If a Form 2848 or Form 8821 is attached refer to the table below for further processing guidelines.

    Caution:

    Keep Form 2848, Form 8821, and any related general power of attorney together.

    If... Then...
    Form 2848 with annotation "Form W-7" , Attach Form 2848 to application and continue processing (files).
    Form 2848 with annotation "Form 1040" , Detach Form 2848 and send with Form 1040 for pipeline processing.
    Form 2848 with annotation "Form 1040" but no return is attached, Detach Form 2848 and route per the Local Routing Guide..
    Fom 2848 with annotation "Form W-7 and Form 1040" , Edit "POA Detached" in upper left corner of Form W-7 and continue processing application. Send original Form 2848 with Form 1040 for pipeline processing.
    Form 2848 with annotation "Form W-7, Form 1040" attached to external CP notice, Edit "POA Detached" in upper left corner of Form W-7; attach original Form 2848 to external CP and route per Local Routing Guide.
    Form 2848 with annotation "Form 1040" attached to external CP notice, Attach original Form 2848 to external CP and route per Local Routing Guide.
    Form 8821 annotated "Form 1040 and Form W-7" , Detach Form 8821 and send with Form 1040 for pipeline processing. Do not attach a copy to the Form W-7.
    Form 8821 annotated "Form W-7" , Attach Form 8821 to application and continue processing.
    Form 8822, Change of Address, Treat as classified waste.

    Caution:

    If applicant is in final status and Form 2848 or 8821 is not edited with the ITIN, "ITIN Reject" or "No W-7" , complete Tax Examiner Action Sheet and process for pick-up and correction.

  3. If a large red "C" is annotated across a page it is an indication that the item is deemed classified waste and should be properly discarded. Do not classify the following:

    Note:

    If the Technical Unit has classified any of the items below, refer to your lead/manager.

    • Original supporting documents. If in doubt, treat as original.

      Exception:

      If an envelope has a "C" written on it and contains as original ITIN card(s), the ITIN card(s) should be destroyed as they are no longer needed.

    • Any attached tax return (Form 1040, etc.) or Form 2848, Power of Attorney and Declaration of Representative (POA) or Form 8821 Tax Information Authorization (TIA)

    • Any cases from the Suspense Wall

    • Form 4442 (Except if no action taken by tax examiner and marked classified ("C" )

    • Form W-7

    • IRS forms or notices from outside of ITIN

  4. Once designated stripping clerks complete the stripping of a batch, the work should be bundled together in the following order:

    1. Place the suspended folder on the bottom;

    2. Place the file folder on top of the suspended folder;

    3. Place any envelopes on top of the folders;

    4. Place 1040 returns on top of the envelopes;

    5. Place any copies of remittance on top of the 1040 returns;

    6. Place any re-files on top of the remittance; and

    7. Place any state tax returns on top.

3.21.263.5.2.3.9  (04-24-2014)
Sorting

  1. Designated clerical employees are responsible for sorting the completed work prior to release.

  2. Refer to the following list of reminders for all Form 1040 Sorts:

    • Remove any return that does not belong and place it in the appropriate sort

    • Check for any attached state tax returns and if found, remove and bundle with a cover sheet.

    • Check for a date stamp if a prior year return or a current year return received after 4/22/cycle (CY).

    • Check to ensure every name on the tax return has a TIN (i.e., SSN, ITIN) or status ("ITIN Rejected" or "No W-7" ). If missing staple a Tax Examiner Action Sheet to the batch cover sheet to be returned back to the Technical Area.

    • Verify that only related forms and schedules are behind the tax return. Remove any other items (i.e., supporting documentation, Form W-7).

    • If found, remove copies of remittance. Write the assigned ITIN on the copy and place in the remittance basket ,only if edited with the Accounting DLN, to be routed to the Accounting Operation.

    • Remove all envelopes and separate into domestic and international mail. Insure that Form 14433 is correctly addressed. Bundle into groups of 50.

    • Remove all colored tags from all assigned or rejected Forms W-7.

      Exception:

      leave pink tags on assigned Forms W-7

    • Count the Forms W-7 in assigned and rejected folders. Write the count on the short slanted side of the 2″ folder in red ink. Put your SEID under the count.

    • Count the Forms W-7 in the suspense folder. Write the count and your SEID on the back of the colored 10194 card.

    • Complete a cover sheet and attach it to the bundle of returns.

    • Deliver to the correct designated basket on the Release Tower.

    • Enter the number of Form 1040s reviewed on a Daily Batch Control Sheet.

  3. Refer to the following additional clerical sorting guidelines:

    Sort Category Description /Required Actions
    Domestic Returns Verify it is a domestic return. Check for a domestic address and that there is no Form 2555 (Foreign Earned Income) attached. When Form 3471E is attached, ensure the RPD is edited on line 4.

    Separate with/without remittance.
    International Return Verify it is an international return. Check for international address, Form 1040NR. Dual Status designation, presence of Form 2555, a negative or bracketed number on Line 21 of the tax return. When Form 3471E is attached, ensure the RPD is edited on line 4.

    Separate with/without remittance.
    Internal Revenue Service Number (IRSN) Rejects Includes all types of returns i.e., Form 1040Xs, Annotated, Domestic and International returns (as well as with/without remittance, RPD for Domestic, International and IRSN Reject).

    Caution:

    Check the primary and secondary TIN boxes to see if "ITIN REJECT" is stamped or written for the TIN. Route to Entity for IRSN assignment ONLY returns with rejected primary/secondary ITINs with the DOB edited in the upper right margin next to their TIN box. If the return only has dependents with "ITIN REJECT" in the TIN boxes, send the return to the pipeline for processing.



    Separate with/without remittance.

    Caution:

    Check the primary and secondary TIN boxes to see if "ITIN REJECT" is stamped or written for the TIN. Route to Entity for IRSN assignment ONLY returns with rejected primary/secondary ITINs with the DOB edited in the upper right margin next to their TIN box. If the return only has dependents with "ITIN REJECT" in the TIN boxes, send the return to the pipeline for processing.

    Form 1040X Check (look on second page of Form 1040X and every return attached) to ensure every name on the tax return has a TIN (i.e., SSN, ITIN) or status ("ITIN Rejected" or "No W-7" ). If missing staple a TE Action Sheet and TE tag to the batch cover sheet to be returned back to the Technical Area.

    Note:

    These should NOT have a Form 3471E attached.


    Annotated Returns Includes written or stamped annotations such as "Copy" , "Duplicate" , "Second" , "Amended" , "Do not Process" , "Corrected" , etc.
    Re-files (Baskets on the tower) Form W-7 applications with or without returns that have a different DLN sequence number that the batch being worked. This can also include CPs, Correspondence, Undeliverables, Undeliverables CP 566s and R99s.

3.21.263.5.2.3.10  (04-24-2014)
Statute Return Processing

  1. Original delinquent returns are returns received after the required or extended due date. The Statute Unit must process newly received delinquent returns and forms 1040X with imminent statutes (that have expired or will expire in the current year) to determine if the return is an original delinquent or an amended return. For processing year 2012, returns for 2008 and prior, including domestic, international and otherwise annotated returns, are delinquent returns requiring expedited statute referral. Do not include "IRSN Rejects" as statute referrals but do refer those returns marked "copy" . Statute can not process a return without a TIN.

  2. Applicants may attach multiple tax year returns to the Form W-7. When sorting completed tax examiner work, the clerical function must review the tax year on all attached returns and identify all statute returns (both balance due and refund returns). In most circumstances, the clerical function will be ensuring that a refund return is forwarded for processing timely to limit refund interest paid on a refund return.

  3. The assessment statute expiration date (ASED) expires three years from the return due date or three years from the return received date, whichever is later. The refund statute expiration date (RSED) expires three years from the return due date or received date, or two years from the date the tax was paid, whichever is later. Leads detach from family packs and hand deliver returns with assigned or rejected primary and secondary (if applicable) ITINs for ASEDs or RSEDs that are within 90 days from today's date to the clerical unit.

  4. When a delinquent return with an imminent statute is identified, ITIN Clerical will take the following steps:

    • If the primary and secondary ITINs are assigned, then route the return to the Statute Unit.

    • If the primary or secondary ITINs are rejected, then route the return to Entity Control for further processing.

      Note:

      Follow normal procedures for suspended applications with Form W-7 / Form W-7SP filed on the Suspense Wall.

3.21.263.5.2.3.11  (04-24-2014)
Release of Work

  1. Work that is released from the ITIN Clerical falls into two categories:

    • Release Tower

    • Cycle Control Unit (CCU) Tower

3.21.263.5.2.3.12  (04-24-2014)
Release Tower

  1. The Release Tower consists of returns and return related documents that will be routed to the Austin Submission Processing Center.

  2. The work is grouped in baskets on the tower based on the type of document and the destination/stop number as outlined below:

    Batching Stop 6054 Outgoing Mail Files - Stop 6722 Accounting Extraction Stop 6052 Suspense Team (Tax Examiner Floor)
    Annotated Returns Form 1040X with U.S. address R&C Batching Stop 6054 Form 9856 Attachment Alert Remittance Copies State Returns IRSN (ITIN Rejects)

    Note:

    " With remittance" and "without remittance" may be placed in the same box. Take separate counts for each category.

    Domestic Form 1040

    Note:

    "With remittance" and "without remittance" may be placed in the same box. Take separate counts for each category.

    Form 1040X with foreign address AM stop 6567 Re-files (volume required)      
    Form 1040NR (International Returns)

    Note:

    "With remittance" and "without remittance" may be place in the same box. Take separate counts for each category.

    Statute Returns Stop 6824        
      Envelopes (USPS Mail) Rejects with tax returns      
  3. Empty the baskets of contents and record the volume on the Truck Departure Times (work released) Sheet in the appropriate time slot.

  4. When releasing returns to Receipt and Control Batching the following rules apply:

    • Bundle in groups of 50. Only the last bundle may be less than 50 if there is not a sufficient volume of documents available.

    • Group the bundles together (i.e., rubber bands or binder clips). Do not use staples.

    • Attach a Form W-7 Tax Return Batch Delivery Tracking Sheet to each box.

      Note:

      During peak season a batch cart may be used instead of boxes due to high volumes. Attach only one cover sheet to the cart before wrapping.

  5. Place documents going to Stop 6054 on a batch cart and documents going to Stop 6722 on a separate cart before wrapping the cart and routing to the dock area for pick up. Place state and statute returns and Form 1040X in boxes with a routing slip that identifies the destination prior to placing on designated tower (with delivery label). Place outgoing/stop mail in mail baskets/tubs prior to placing on designated tower (with delivery label). Each tower must be wrapped and identified with a Routing Sheet to the Austin Submission Processing Center and placed on the dock for pickup.

    Note:

    Do not place wrapped towers in the dock area earlier than 30 minutes prior to the dedicated run pick up time (6:30 a.m. and 1:30 p.m.). There are additional delivery and pick-up times throughout the day but live work can only be sent on the dedicated runs with a truck seal.

3.21.263.5.2.3.13  (04-24-2014)
Cycle Control Unit (CCU) Tower

  1. The CCU Tower consists of Files Folders (assigned and rejected applications) and Suspense Folders.

  2. Refer to the guidelines outlined in the table below for Files Folders (Document 6982):

    Review and Distribution of Files Folders
    Ensure all batches have been stripped. Refer any batch that has not been stripped to your Lead.
    Remove the Batch Cover Sheet if still attached.
    Ensure the first 11 digits of the DLN number are written down the left side of the Files folder.
    Ensure the SEID is written on the folder.
    Ensure that all assigned/rejected Forms W-7 in the folders have been counted and written on the short right side of the folder. If not, return the work to the sorter.
    Ensure all Form W-7 in each batch have a status sheet attached. If not, refer to Lead.
    Verify that all Form W-7 in each batch are in DLN order.
    Check each batch and refer to your Lead the following for correction or routing;
    • Form W-7 with a DLN different from the DLN written on the left side of the folder. Leads will place in the basket labeled "Re-files" on the Release Tower.

    • Form 1040. Leads will place on the Release Tower.

    • Form W-7 without a status sheet. Leads will place on the Release Tower in the designated basket, "Need Status Sheet" . Batch number will need to be annotated and placed on the front of the Form W-7 so a Status Sheet can be reprinted.

    • Form W-7 in Suspense, Pending or OFAC Status.

    • Original documents

    Upon completion, place the batched folders in a box (7-10 folders per box). When you have accumulated 24 boxes, place the boxes in DLN order on a cart, place the boxes starting at the bottom, right to left. Number the boxes "1-4" , "5-8" "9-12" . Turn the cart around and continue the process "13-24" . The last 2 boxes (23 and 24) can be mixed type and out of DLN order but must be marked "MISC" . Take the cart over to the CCU. Wrap the tower and mark it as going to "Files." Place the tower on the dock for pick-up.
  3. Suspense Folders are kept together and reviewed. Refer to the guidelines outlined in the table below for Suspense Folders.

    Review and Distribution of Suspense Folders
    Ensure the suspense card is securely attached to the folder, the DLN (minus the first and last three digits) is written down the left edge of the suspense card. and the SEID is written on the right edge of the suspense card.
    Verify all Form W-7 in the batch have a status sheet attached.
    Ensure that all suspended Forms W-7 in the folder have been counted and that the quantity is on the back side of the 10194 with the SEID of the sorter. If this has not been done, return the work to the sorter.
    Ensure all Form W-7 in each suspense folder are in DLN order.
    Check each batch and refer to your Lead the following for correction or routing;
    • Form W-7 that are suspended with a DLN different from the DLN written on the left side of the folder. These will be placed in the "suspense to be filed" basket. Family packs with multiple suspended Form W-7 in this category will be set up as "suspense crisscross" .

    • Form W-7 without a status sheet. Leads will place on the Release Tower in the designated basket, "Need Status Sheet" . Batch number will need to be annotated and placed on the front of the Form W-7 so a status sheet can be reprinted. Do not separate family packs.

    • Form W-7 in Pending or OFAC Status.

    • Form W-7 that are not a part of a family pack and have a status of Assigned or Rejected. These will be placed in a batch folder in the same cart slot if the DLN matches the DLN on the folder. If no match, it will be placed in the "Re-files" basket on the Release Tower.

    • Original documents

    Upon completion of the review, the Suspense Folders are placed on the cart labeled the same to be filed on the Suspense Wall.

More Internal Revenue Manual