Part 3. Submission Processing

Chapter 28. Special Processing Procedures

Section 4. Identity Theft Returns for Submission Processing

3.28.4  Identity Theft Returns for Submission Processing

Manual Transmittal

February 05, 2013

Purpose

(1) This transmits new IRM 3.28.4, Identity Theft Returns for Submission Processing

Material Changes

(1) This IRM will include procedures for working identity theft cases categorized as IDT1, IDT2, IDT8 and IDT9 and UPC 147 RC 1 referrals. The procedures will include research to determine the owner and non-owner of the TIN and make necessary adjustments to the accounts.

Effect on Other Documents

none

Audience

Individual Master File (IMF) Specialized Identity Theft Units, Wage and Investment, Submission Processing Centers

Effective Date

(02-05-2013)


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

3.28.4.1  (02-05-2013)
Background

  1. Specialized Identity Theft (SPIDT) Units were established October 1, 2012, in each of the Submission Processing IMF Sites. SPIDT Units will work the following types of cases:

    • Unpostable Code (UPC) 147 Reason Code 1 cases that are referred from Unpostables for additional research. These are cases previously referred to the Accounts Management (AM) Identity Protection Specialized Unit (IPSU) or the Integrity and Verification Operation (IVO) (formerly AM Taxpayer Assurance Program) Unit in Returns Integrity and Correspondence Services (RICS).

    • Category IDT1/8/9 Identity Theft cases from AM inventory.

3.28.4.2  (02-05-2013)
Routing Taxpayer Advocate Service (TAS) OARS

  1. OARs that need to go to SPIDTwill be routed to the SP Input Correction Notice Review (ICN) E-OAR Mailbox at each site. TAS employees will document in the subject line of the email, “IDT1” or “147” case. Any OARs received through the ICN E-OAR Mailbox will be distributed to the appropriate employee and worked as a priority.

3.28.4.3  (02-05-2013)
TAS Same-Day Resolution Criteria

  1. During a taxpayer contact, when: It appears there may be a hardship situation, or The taxpayer asks to be referred to the Taxpayer Advocate Service (TAS), or the contact meets TAS criteria, and you can’t resolve the taxpayer’s issue within 24 hours, prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), to the Local Taxpayer Advocate.

  2. If you have taken steps within 24 hours to resolve the taxpayer’s issue, do not transfer the case to TAS unless the taxpayer asks to be transferred. See IRM 13, Taxpayer Advocate Service, for more information.

3.28.4.4  (02-05-2013)
Identity Theft Assistance Requests (ITAR)

  1. SP examiners will receive a Form 14103, Identity Theft Assistance Request (ITAR), referral from an IPSU CSR (Andover or Fresno) when they are working to resolve a tax related issue involving identity theft regardless if there is an open control on IDRS or AMS on the case.

  2. ITARs are similar to TAS OARs, but the cases must involve identity theft and meet TAS criteria 5-7. See IRM 21.9.2.9, ITAR General Information.

  3. When the Form 14103 is received, send an acknowledgement within 5 business days via secure e-mail or by entering a case note on the linked case on AMS/CIS. See IRM 21.9.2.1 (4), Identity Theft - General Information. for guidance regarding required AMS narratives and CIS case notes.

    Exception:

    If the control related to the Form 14103 results in an IDT9 control, acknowledgment of the Form 14103 referral is not needed UNLESS the requested completion date cannot be met. Contact is still required if the requested completion date cannot be met.

    Note:

    If responding by secure e-mail, you must include your full name (first and last) as well as your Standard Employer Identifier (SEID).

  4. Cases referred with the Form 14103 should be considered priority work (similar to a TAS OAR).

  5. Review Section IV, Specific Assistance Requested, of the Form 14103 and determine whether the recommended action is appropriate and the requested completion date is reasonable.

    If... Then...
    There are questions related to the recommended action provided by the IPSU CSR Contact the IPSU CSR noted in Section II of the Form 14103 either by secure e-mail or phone to clarify, discuss and understand the recommended action and agree to recommended completion date, enter CIS case note; "Completion Date Accepted - MM/DD/YYYY"
    The requested completion date cannot be met Negotiate a completion date based on the process(es) required to resolve the issue and enter in Box 4 of Section IV of the Form 14103. The function and IPSU CSRs should reach an agreement on the substantive case issue, recommended actions and follow-up and completion dates. Once an agreement is reached on a new completion date, enter CIS case note; "New Completion Date - MM/DD/YYYY."

  6. Once receipt acknowledgment of the Form 14103 has been sent back to the IPSU CSR, and questions and completion dates have been agreed to, convert your case's control from the originally assigned category (IDT1 or IDT8) to IDT 9 on AMS/CIS and IDRS. DO NOT CHANGE THE RECEIVED DATE. By using this category code, you will have the ability to track your case on AMS/CIS.

  7. SPIDT will continue to work the IDT9 case in the same way as an IDT1 case.

  8. The SPIDT examiner is required to provide a status update every 30 days to AM IPSU. The status update can be made by:

    • Secure e-mail

    • Case note entered on the linked CIS cases providing a status update, ex: "Additional information from taxpayer needed, 4475C letter issued" , or; "TC150 requested from files," etc. By entering CIS case notes with periodic and required status updates, it assists the CSR in responding to phone inquiries from the taxpayer and provide a better status update on their identity theft related case.

    • Fax (if either of the two options above is not available)

      Note:

      If the ITAR control was closed to TAS because the taxpayer is experiencing an economic hardship, the IDT9 control must be reverted back to the original category control and the Form 14103 referral returned to the AM IPSU CSR. See IRM 21.9.2.9.1 (3 and 4), Identity Theft Assistance Request (ITAR) - AM IPSU only, for additional information.

  9. Once the tax related issue is resolved, and all adjustment actions have been input, return the Form 14103 to the IPSU CSR with Section V and VI completed via CIS or fax when CIS is not available. Enter CIS case note; "F14103 Section V and VI Completed."

3.28.4.5  (02-05-2013)
Unpostable Code (UPC) 147 Reason Code (RC) 1

  1. UPC 147 RC 1 occurs when a return attempts to post to an account containing an unreversed TC 971 AC 501 or 506 and does not pass established identity theft business filters. See IRM 3.12.179.43, UPC 147 RC 1, Possible Identification Theft Procedures.

  2. In order for a return to unpost as UPC 147 RC 1, the account would have been previously marked with identity theft indicators, 971 AC 501 or 506. These indicators are part of the unpostable condition.

  3. UPC 147 RC 1 cases that unpost are automatically routed to the Unpostable function for preliminary research and resolution.

  4. When Unpostables is unable to determine whether the return was submitted by the Social Security Number (SSN) owner or an unauthorized filer, they will refer the case to the SPIDT Unit. Unpostables will re-assign the unpostable to the generic unit number for the SPIDT Unit at their site.

3.28.4.5.1  (02-05-2013)
Referral process

  1. Each case referred by Unpostables will contain a UPC 147 RC 1 Comparison Checklist, identifying the research steps taken and the criteria identified for referral. See IRM 3.12.179-6 and IRM 3.12.179-7, for examples of the checklists.

  2. For paper returns, Unpostables will forward the entire return with any attachments, the charge-out, Form 4251, and the checklist to SPIDT.

  3. Any substantiation documentation received with UPC 147 RC 1 cases will remain attached to the return. The documentation will be reviewed in making the determination of the true owner of the social security number. Substantiation documentation includes Form 14039, Identity Theft Affidavit, police reports and copies of identification cards. Often the documentation received with an UPC 147 RC 1 case is a duplicate of documentation previously submitted by the taxpayer.

3.28.4.5.2  (02-05-2013)
Organization Function Program (OFP) codes for UPC 147 RC 1 work

  1. SPIDT examiners should use OFP 290-40012 for time spent working UPC 147 RC 1 cases. OFP 550-40012 should be used for clerical activities related to UPC 147 RC 1 cases.

3.28.4.5.3  (02-05-2013)
Research Steps

  1. SPIDT will make the determination of whether the unpostable return is either "good" or" bad" . Based on the determination, post or delete the return and close the unpostable.

  2. Compare data from the return and attachments to posted return history to determine if the return was submitted by the SSN owner. Research using ENMOD, IMFOL, TRDBV, DDBKD, RTVUE, NAMES, INOLE, DUPOL, FFINQ, REINF, and IRPTR, etc., if applicable.

  3. Check ENMOD for the year of the TC 971 AC 501 or AC 506, IRPTR for matching employer and/or addresses, TRDBV for the good taxpayer's filing history, and DDBKD to ensure the dependents are the filer's or have been claimed by the taxpayer in previous years. Review the account and the returns to determine what information matches the previous year's fraud return and what matches the good return.

    • Name

    • Social Security Number (SSN)

    • Secondary Name

    • Secondary Social Security Number (SSSN)

    • Address

    • Dependent Name(s)

    • Dependent SSN(s)

    • Dependent Relationship(s)

    • Form W-2 ,Wage and Tax Statement

    • Form 1099s (,

    • Employer(s)

    • Income Amount(s)

    • Earned Income Tax Credit (EITC) claimed

    • Direct Deposit Information

    • Occupation

    • Signatures (except for e-filed returns when a signature is unavailable)

    • Similar tax data

    • Tax preparer

    Note:

    When making comparisons, also consider relationships between changes in marital status and in filing status, such as previous married filed joint, now married filing separate with the same spouse, the birth of a child, an older child that is no longer a dependent, life changing events such as marriage, divorce, or death, etc.

3.28.4.5.4  (02-05-2013)
Generalized Unpostable Framework (GUF) Command Codes

  1. The following command codes are used for closing unpostable cases.

    1. CC UPTIN is used to display all open upostable cases for a specific TIN. CC UPTIN is used to get the cycle sequence number for a case.

    2. CC UPDIS is used to display unpostable records. When CC UPDIS is input with cycle sequence number, the response screen display shown will be CC UPRES.

    3. CC UPRES is displayed when CC UPDIS is input. CC UPRES is used to close the unpostable case. The unpostable resolution code (URC) is entered on the UPRES screen. Input URC" 0" to re-post a return to Master File. Input URC "D" to delete the return

    4. CC UPCASZ is used to enter remarks. Overlay CC UPRES with CC UPCAS using Definer “Z”

3.28.4.5.5  (02-05-2013)
Closure instructions

  1. If able to make a determination based on internal research, close the unpostable and notify the Unpostable function. Follow the steps below to close the unpostable and input remarks.

    If ... Then ...
    A. the return is “good”

    1. Post the return.

    2. Access CC UPDIS. (Response screen will be CC UPRES).

    3. Input Unpostable Resolution Code (URC) 0.

    4. Input comments “SPIDT-Good.”

    5. Close the case on IDRS.
    B. The determination is that the return was not filed by the SSN owner and the income cannot be verified

    1. Delete the return and close the unpostable.

    2. Access CC UPDIS. (Response screen will be CC UPRES).

    3. Input URC D.

    4. Input comments "SPIDT-BAD."

    5. Close the case on IDRS.
    C. the determination is that the return was not filed by the SSN owner, but the income can be verified as actually earned

    1. Move the return to an IRSN. Use a existing IRSN if one is identified. Otherwise obtain a new IRSN.

    2. Input ID Theft indicators. See IRM 3.28.4.5.7.

    3. Use CC UPCASZ to input comments “SPIDT-NEED IRSN.”

    4. Input URC 8 to forward case to Rejects.

    5. Complete Form 8749, Unpostable Action and Routing Slip (or locally developed form) with the same comments; “Use IRSN 9XX-XX-XXXX*”. Include the closing date in box 17 on the Form 8749.

    6. Send form to Rejects. Request that Rejects deny the personal exemption for the Primary taxpayer and remove any EIC claimed and input CCC 3 to freeze any possible refund.

    7. Reassign case back to appropriate campus IDRS#.

    8. Close the case on IDRS using same comments “Use IRSN 9XX-XX-XXXX*”.

    .

3.28.4.5.6  (02-05-2013)
4455C letter for Additional Information

  1. If unable to make a determination based on internal research:

    • Send Letter 4455C, UPC 147 — Taxpayer Inquiry Letter, to the taxpayer’s address on the return.

  2. Input the following comments to notify the Unpostables function that correspondence was sent:

    If ... Then ...
    1. Correspondence is needed for additional information from the taxpayer Access CC UPCASZ and input comments "SPIDT-4455C SENT" . Note: The Unpostable Function will use the date of the history item to calculate their suspense period.
    2. Correspondence is needed a second time (ex: a requested page is missing or not legible). Access CC UPCASZ and input comments "SPIDT-2nd CORRSENT" . Note: The Unpostable function will use the date of the second history item to calculate their suspense period.

  3. Take the following action based on the response to the 4455C Letter:

    If ... Then ...
    1. The taxpayer provides a response sufficient to make a determination of whether the return is “good” or “bad” Close the unpostable by posting or deleting. See IRM 3.28.4.5.5(1), table for instructions..
    2. The taxpayer does not respond within the prescribed time frame See IRM 3.28.4.5.5(1) table for instructions to post the return to an IRSN.
    3. The taxpayer’s response is incomplete (indicates that they filed the return but does not provide all the requested information or response is not legible Send a Letter 131C, Information Insufficient or Incomplete for Processing Inquiry or other appropriate letter to request the missing information. Refer to procedures in the 3.28.4.5.6(1) table above to notify the Unpostable function that the taxpayer’s response was incomplete and that additional correspondence is needed.

  4. If a late response to the 4455C letter is received, research the account to determine what action to take.

    If... And... Then...
    A. The taxpayer submits the requested documentation or a different/better TIN The return has been posted to an IRSN,

    1. Take appropriate action to merge/resequence the IRSN to the provided TIN.

    2. Adjust the account to allow any exemptions and/or credits that were disallowed when the return posted to the IRSN.
    The return has not posted to an IRSN yet, Monitor the IRSN for posting of the return and follow the steps in box A above.
    B. The taxpayer responds that s/he did not file the return   No further action is required.

3.28.4.5.7  (02-05-2013)
Inputing ID Theft Indicators

  1. When a return is moved to an IRSN, the account must be marked with a TC 971 AC 506 indicator. Complete the procedures for both the TIN and the connected IRSN using the following table:

    Caution:

    The IRSN account MUST be established prior to completing the these procedures.

    From CC ENMOD input the SSN or IRSN. The CC ENMOD account will display.
    Overlay the CC ENMOD with CC REQ77.
    The CC FRM77 screen will display and contain the partial information needed for the taxpayers account.
    Complete the following steps on both the TIN and the IRSN.
    TIN case IRSN case
    1. Input TC 971 with AC 506.
    2. Input 1231YYYY for the SECONDARY-DT (YYYY is the tax year at issue). The date must not be later than the current date.
    3. Input "WI SP UPCMUL" in the MISC field.
    5. Enter the IRSN in the remarks field.     		1. Input TC 971 with AC 506.
    2. Input 1231YYYY for the SECONDARY-DT (YYYY is the tax year at issue.)
    4. Input "WI SP UPCMUL" in the MISC field.
    5. Input the related TIN in the remarks field.
    From CC TXMOD input the SSN or IRSN. The CC TXMOD account will display. Overlay the CC TXMOD with CC REQ77. The CC FRM77 screen will display and contain the partial information needed for the taxpayers account. Complete the following steps on both the TIN and the IRSN.Navigate to CC TXMOD
    TIN case IRSN case
    1. Input TC 971
    2. Input current data (DDMMYYYY) for the TRANS-DT field.
    3. Input 017 in the TC971/151-CD field.
    4. Input the Cross Reference IRSN in the XREF-TIN field.
    5. Input Cross Reference MFT in the XREF-MFT field.
    6. Input Cross Reference Tax Period in the XREF-TX-PRD.
    7. Input "Possible ID Theft" in the Remarks Field.     		1. Input TC 971
    2. Input current data (DDMMYYYY) for the TRANS-DT field.
    3. Input 017in TC971/151-CD field.
    4. Input the Cross Reference "Possible ID Theft " TIN in the XREF-TIN field.
    5. Input Cross Reference MFT in the XREF-MFT field.
    6. Input Cross Reference Tax Period for XREF-TX-PRD.
    7. Input "Possible ID Theft" in the Remarks Field.

3.28.4.5.8  (02-05-2013)
Correspondence after Issuing an IRSN

  1. After establishing an IRSN or moving the return to an IRSN, send the following correspondence to the address as indicated in the table.

    TIN Letter Address to mail to
    IRSN 4456C letter, UPC 147 - Temporary Number Assignment taxpayer address on the "bad " tax return. This would be address of the IRSN. Do not include the related SSN in the letter. Use the IRSN for the Taxpayer Identification Number.
    TIN 4457C letter, UPC 147 - ID Theft Attempt Notification Letter taxpayer's LKA (last known address).

    If the address on the tax return and the LKA are the same address, only issue a Letter 4456C.

3.28.4.6  (02-05-2013)
IDT cases

  1. SPIDT is assisting Accounts Management with working its identity theft inventory. SPIDT will work mainly the following category type cases from AM, “IDT1”, “IDT8” and “IDT9”. In order to maintain consistent resolutions, SPIDT will primarily follow the AM Part 21 instructions for working IDT cases unless otherwise indicated in this IRM.

  2. The SPIDT Manager should regularly check the SERP web site for updates to this IRM as well as IRM 21.6.2 and IRM 21.9.2.

  3. The following IRMs should be used when working IDT cases:

    • IRM 10.5.3, Identity Protection Program

    • IRM 21.4.4, Manual Refunds

    • IRM 21.5.2, Adjustment Guidelines

    • IRM 21.6.2, Individual Tax Returns, Adjusting TIN-Related Problems

    • IRM 21.9.2, IMF Accounts Management Identity Theft

  4. Identity Theft related Category Code Definitions

    Category Code Type of Case SP Function and Program for Time Reporting
    IDT1 Involves taxpayer self-identified identity theft 710-40012
    IDT8 Involves identity theft (CP 05A, cases with prior Integrity and Verification (IVO) (formerly AMTAP) involvement or deceased taxpayer cases only) 710-40012
    IDT9 Involves Form 14103, Identity Theft Assistance Request (ITAR) referral 710-40012
    DUPF Involves two returns attempting to post to the same tax module 710-40050
    XRET Amended return 710-40051
    OTHE Other adjustments 710-40000
    IRRQ Internal request
    TPRQ Taxpayer request (receipt of a Form 14039)

    SPIDT examiners should use the above OFP codes for reporting time spent working IDT related cases.

  5. SPIDT will receive mainly IDT1 cases. Some IDT1 cases will become IDT8 or IDT9 cases while they are being worked. SPIDT is responsible for resolving IDT1 cases that are re-categorized as IDT 8 or 9.

  6. When an IDT1 case is assigned, there may other open cases linked to the IDT1 case, such as duplicate filing, amended return, etc. In the process of working the IDT1 case, SPIDT will work the associated cases.

  7. There are additional IDT category codes for inventory that is not worked by Submission Processing. See IRM 21.6.2.4.2.3, Preliminary Research, for more information on all of the IDT category codes.

3.28.4.7  (02-05-2013)
Assigning IDT Cases through the Correspondence Imaging System (CIS)

  1. AM will assign cases to SPIDT through the Correspondence Imaging System (CIS). An established number of cases will be assigned to SPIDT each week. CIS will be used to monitor the assigned inventory.

  2. Additional information about CIS can be found in IRM 21.5.1, CIS Procedures. Since CIS was created for AM, not all of the CIS procedures are applicable to SP. Use the information in IRM 21.5.1 for general knowledge of how CIS is structured and operates.

  3. The aged criteria for CIS cases is based on the IRS received date. IDT1, IDT8 and IDT9 cases become aged after 180 days. Many of the cases that are assigned to SPIDT may already be aged or almost aged. The cases may have been previously categorized as DUPF or MIXEN. CIS reports that show an aged period, will not accurately identify the length of time that the cases have been assigned to SPIDT.

3.28.4.8  (02-05-2013)
IDT Research

  1. SPIDT should start case processing by using the research instructions in IRM 21.6.2.4.2.3, Preliminary Research. This IRM has instructions for determining whether the case contains returns filed by the owner of the SSN.

  2. Preliminary research may have already been completed on the case. AM CSRs may have conducted research in order to determine whether the case should be categorized as IDT1. There may be AMS History/CIS notes stating "Bad/Good" or "Good/Bad" "per IRP data" or "Refund Scheme" , but it is the responsibility of SPIDT to verify that the AM CSR's determination is accurate.

  3. Use of the following tools will be an important part of your preliminary research:

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. If there is no indication of any prior research, then the case may have been generated by the CP 36 Transcript batch tool. Cases identified by the tool as IDT1 criteria, will not have any preliminary research done.

  5. Review for ID Theft substantiation documentation such as Form 14039, Identity Theft Affidavit, copies of photo ids. See IRM 10.5.3.2.6, Initial Allegation or Suspicion of Tax-Related identity Theft - Identity Theft Indicators.

3.28.4.8.1  (02-05-2013)
ID Theft Substantiation Documentation

  1. The Identity Theft Affidavit, Form 14039, is accepted from taxpayers in support of an allegation of identity theft. The IRS only accepts the IRS affidavit or a police report for substantiation purposes.

  2. The Form 14039 requests that specific identification documents be submitted. The types of acceptable identification are passport, driver's license, social security card and other valid government issued identification. See IRM 10.5.3.2.7I, Overview - Identity Theft Supporting Documentation.

  3. ID Theft documentation needs to be submitted only once every 3 years. One submission covers every ID theft incident for the next three years. ID theft documentation does not have to be submitted again or attached to anything if the following unreversed TC 971 Action Codes on ENMOD are present: 501, 504, and 506. Also AC 522 with MISC codes INCOME, MULTFL, INCMUL, NOFR or OTHER. See IRM 10.5.3.2.7, Overview - Identity Theft Supporting Documentation.

  4. The substantiation documentation received with an IDT1 case may be incomplete, (photo id is illegible or missing). The SP examiner should continue to work the case if they have enough information to make a determination. Additional documentation should only be requested if truly necessary. See IRM 21.6.2.4.2.3Preliminary Research, no. 15, second note.

  5. Effective January 7, 2013, there is a new letter,Letter 5073C,Acknowledgement Letter for Identity Theft Documentation.For cases received by SPIDT after January 7, 2013, this letter is required when complete identity theft documentation has been received, see IRM 10.5.3.2.7,Overview - Identity Theft Supporting Documentation. If the letter has not already been sent, SPIDT will have to send the 5073C letter. To send the letter, fill in items A, B, and #6. Fill-in #6 should read "90" days. Also select paragraph F. If the address on the 14039 or other ID theft documentation is different than the address on the return, send the 5073C letter to the address shown on the F14039 or other ID theft documentation.

3.28.4.8.2  (02-05-2013)
Prior Integrity and Verification Operation (IVO) (formerly AMTAP) Involvement

  1. Accounts with IVO involvement will show TC 971(s) with AC 134/617 and the account will reflect issuance of a 4464C letter and/or CP 05 notice. Refer to IRM 21.5.6.4.35.3 ,-R Freeze Modules With Accounts Management Taxpayer Assurance Program (AMTAP) Involvement (4464C Letter or 4115C Letter), for other indicators of IVO activity. If the case shows prior IVO involvement, before taking any preliminary research actions, see IRM 21.6.2.4.2.3.2, TIN Related Problems Cases with Previous AMTAP Involvement. If an account shows prior IVO involvement and a CP05A has been issued, if the account has not been reversed, then it will be categorized as an IDT8.

3.28.4.8.3  (02-05-2013)
Deceased Taxpayer Indicator

  1. If the case shows a Date of Death for the taxpayer on cc INOLE/INOLET, before taking any preliminary research actions, see IRM 21.6.2.4.2.3.3, TIN Related Problem Cases with Deceased Taxpayer Indicators. This section has instructions for determining whether a fraudulent return has been filed on the account of a deceased taxpayer. If an IDT case has a deceased taxpayer indicator, then re-categorize it as an IDT8 prior to closure.

3.28.4.9  (02-05-2013)
Nullity Returns

  1. Through preliminary research you may determine that the case meets one of the streamline case processing procedures, that the bad return can be nullified or that the case meets CAT A criteria.

  2. A return that is not filed by the SSN owner can be considered a non-valid return, a "nullity" . If a filed return meets the nullity criteria, it is considered false and can be processed as a nullity return. A nullity return can be reversed from the account and does not have to be moved to an IRSN.

  3. If the case is determined to have a nullity return, proceed to IRM 21.6.2.4.2.3.4, TIN-Related Problems for IRP Data and Refund Scheme Case Processing. This IRM section has an IF/Then chart for processing the case based on it's specific characteristics. The chart links to IRM 21.9.1.10.1.1.4 procedures including:

    • adjusting a posted bad return

    • math verifying a good TC 976 duplicate return.

    • sending correspondence

    • inputing ID Theft indicators (971 AC 501, 506, 522)

    • issuing a manual refund

    • correcting the entity information

    • preparing Form 3809Miscellaneous Adjustment Voucher, to move an erroneous refund to 1545 account.

  4. If a return in the case cannot be determined as a nullity then continue to work the case using the instructions in IRM 21.6.2.4.2.5, Determining Ownership of the Common Number (CN)-Pre-239C.

3.28.4.10  (02-05-2013)
TC 971 Action Codes for IDT1/8/9 cases

  1. Transaction code 971 with action code 501 or action code 506 is used to mark accounts once they have been resolved. When resolving IDT cases, use the AM action code and associated miscellaneous codes as indicated in IRM 21.6.2. For more information on the action code definitions, refer to IRM 10.5.3-4 , TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501 and IRM 10.5.3-10 ,TC 971 AC 506 — IRS-Identified Tax-Related Identity Theft Case Closure.

    Note:

    When closing IDT1/8/9 cases, do not use the action codes associated with Program Name “SP”. These codes are for the UPC 147 RC 1 referral case closures. Miscellaneous codes for IDT cases worked by SPIDT have not been established..

3.28.4.11  (02-05-2013)
Closing IDT cases

  1. You will close the case based primarily on following the instructions in IRM 21.6.2 and associated links to other relevant IRMs and resources

  2. Make sure to update the address on ENMOD to the address of the taxpayer determined to be true owner of the SSN.

  3. Make sure to enter the appropriate case notes in AMS/CIS to document actions taken and status of the case.

3.28.4.12  (02-05-2013)
Case Transfers

  1. SPIDT will only re-assign cases to another area based on criteria already established by AM for IDT cases.

  2. The Submission Processing Reassignment List under CIS Reference Guideshttp://fresnodirectorshipam.web.irs.gov/Working%20on/CIS/CIS.aspx, provides instructions for reassigning cases with issues such as correspondence in Spanish, open XRET case, open carryback, and open NMRG. These are issues that SPIDT would not be able to resolve.

3.28.4.13  (02-05-2013)
14027-B Referrals to SPIDT

  1. The Identity Protection Specialized Unit (IPSU) in Wage & Investment, Accounts Management, will refer cases via Form 14027-B, Identity Theft Case Referral, to SPIDT. Form 14027-B is sent to functions when an individual with a tax-related identity theft issue has called the IPSU. The form is used to notify functions that an IPSU caseworker will be monitoring case activity and following up on a regular basis. Form 14027-B will be routed through designated Identity Theft Liaisons (see SERP/Who/Where - Identity Theft Liaisons - Functional ) and forwarded to functional employees.

  2. IPSU will send the SPIDT Liaison a secure e-mail with notification that an IDTX CIS case with an imaged Form 14027–B has been linked to an open CIS case at his/her site. The title of the e-mail must say "New Form 14027–B" or "Form 14027-B Follow-up - 1st (2nd, 3rd, etc)," depending on how many times a follow-up is needed.

  3. See IRM IRM 10.5.3.2.11.1.1, Functional Responsibilities Regarding Referrals from the IPSU - Form 14027B, or information on completing the form.

  4. Once the IDT case has been closed, a completed Form 14027–B will be attached to the case and returned to IPSU through CIS.

    Note:

    If the case has been forwarded to another function for action, then return Form 14027-B, with Section VI completed, to the IPSU identity theft caseworker.


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