4.4.9  Delinquent and Substitute for Return Processing (Cont. 1)

4.4.9.6 
Substitute for Return

4.4.9.6.1  (05-08-2012)
Statutes

  1. The posting of the SFR does not set the ASED, RSED, or collection statute expiration date (CSED) Master File date.

  2. The statute date on the opening record sent from Master File to AIMS will reflect the ASED as if the return was timely filed.

  3. AIMS will populate the ASED with the ASED received from Master File but an "EE" will be substituted in the "DD" portion of the ASED.

4.4.9.6.1.1  (05-08-2012)
Refund Allowed

  1. If the date the TC 30X posts to Master File, is greater than 3 years from the SFR TC 150 date, the refund will be automatically frozen and a D Freeze generated. The group must determine whether the refund should be released and if so, the group should enter in the comments section of the Form 3198"Refund should be released - Enter a TC 290 for $0.00 with a Priority Code 4 and cycle the TC 290 so it posts after the TC 30X" .

4.4.9.6.1.2  (02-01-2006)
Refund Barred

  1. If an SFR posted and the RSED has expired and the TC 30X will result in a refund, the credits must be moved to the Excess Collection File. The group must enter the following in the comments section of Form 3198: "Move Credits to Excess Collection File."

4.4.9.6.2  (05-08-2012)
Generating an SFR

  1. If no TC 150 is posted on the module, a substitute for return can be computer generated for all Master File Tax (MFT) codes that are valid on AIMS (01-07, 09-12, 14, 16, 30, 33, 40, 51, 52, 58, 60, 63, 64, 77 or 78) by using a Push Code 036 on ERCS, or inputting a TC 424 with a Push Code 036 for non-ERCS users.

    Note:

    If manual SFR process must be followed because the MFT is not set up for automatic SFR (MFT 08), send paper SFR to:
    1973 N. Rulon White Blvd.
    MS 1125
    Ogden, UT 84404

  2. Before a TC 424 with a Push Code 036 is input, several steps must be taken to ensure the successful generation of the SFR.

4.4.9.6.2.1  (05-08-2012)
Research

  1. Check Master File to ensure no TC 150 is posted. An SFR cannot be requested if a TC 150 is posted.

  2. Check Master File for CI controls. An SFR cannot be requested if CI controls are present.

  3. BMF - Check ENMOD or INOLES.

    1. Does the entity already exist? If it does not, complete Form 2363. To create an account, enter an "X" in box to the right of the Trans Code 000 and fax to CCP.

      Note:

      If input successfully, the account will establish the Monday after the 2nd weekend from the input date.

    2. If the name at Master File is not correct, prepare Form 2363. To initiate a CC BNCHG, enter an "X" in the box to the right of the Trans Code 013 to change the name and fax to CCP.

    3. If any other items on the entity need to be added/corrected, prepare Form 2363 and fax to CCP.http://mysbse.web.irs.gov/AboutSBSE/aboutccs/ccsprog/casepro/cp/pro/21596.aspx

    4. Master File does not have to contain a filing requirement, but if one exists, ensure that it is consistent with the return being submitted. If the filing requirement is for a Form 1065, the filing requirement must be changed before a Form 1120 is submitted. If the filing requirement is for a Form 1120, the filing requirement must be changed before a Form 1120S is submitted. The election to be treated as a sub-chapter S also must be on file before an 1120S is submitted.

  4. IMF - Check ENMOD, IMFOLE, or INOLES.

    1. Does the entity already exist? If it does not, complete Form 2363 and fax to CCP. To create an account, enter an "X" in box to the right of the Trans Code 000.

      Note:

      If input successfully, the account will establish the Monday after the 2nd weekend from the input date.

    2. Name line year - It is no longer necessary to ensure the name line year covers the SFR tax period. Master File will update the name line year systemically when the SFR TC 150 posts.

    3. Filing status - It is no longer necessary to change the filing status. Master File will update the filing status from joint to married filing separate or from head of household to single when the SFR TC 150 posts. If the update would not result in the correct filing status, prepare Form 2363 and enter the correct filing status in the FSC box.

    4. Is the name control correct? If the name control at Master File is incorrect, Form 2363 must be prepared and faxed to CCP for input.

  5. Posting of an SFR TC 150 for any MFT will not set the filing requirement for future periods.

4.4.9.6.2.2  (05-08-2012)
Generating the SFR Using Form 5345, Examination Request (All Versions)

  1. Generate the SFR as follows:

    • For ERCS users:
      Enter the month and year with "EE" in the statute field as if the return was timely filed. (Example: The ASED for a non-filed 200912 Form 1040 return would be entered as 04/EE/2013).

      Note:

      Only the "EE" portion of the ASED will appear on the AIMS skeletal record. Use Push Code 036 on the requisition screen. If the case is already on AIMS, wait until the Opening Creation Date on AIMS is more than 30 days from current date, then update the push code on ERCS to 036. Both of these processes will send a CC AM424 with a Push Code 036 to AIMS.


      Enter only one name - SFRs cannot be created for joint filers. Each taxpayer must be created separately.
      Do not answer "yes" to the question "Original Return Requested" . If an SFR is requested, there is no return to request and AIMS will reject the request. If the return was inadvertently requested, select "Request Tax Return" , then "Resubmit Request" . This will change the record type back to REQUEST. Immediately select "Correct or Display Records" , then "Correct a Single Tax Return" . Enter the return information, change the Rtn Requested indicator to "N" . This option only works if the record type is REQUEST.

    • For non-ERCS users:
      Input CC AM424 with a Push Code 036 using "EE" in alpha code field when requisitioning the return on AIMS. If case is already on AIMS, wait until the Opening Creation Date on AIMS is more than 30 days from current date, then input another AM424 using the same primary business code (PBC), secondary business code (SBC), employee group code (EGC), and status code.

  2. The request will go through validity checks before it is completed. If a TC 150 has posted, a reject message "TC 150 Present" will appear.

  3. If the input passes AIMS checks, AIMS will send the TC 424 to Master File and additional validations will be performed.

    1. IMF/BMF - If a TC 150 has posted, MF will unpost the TC 424 with a UPC 173 RC 4 for IMF and UPC 314 RC 2 for BMF.

    2. BMF - Unpost a TC 424 Push Code 036 (UPC 314-1) for MFTs other than 01, 02, 03, 04, 05, 06, 07, 10, 11, 12, 16, 33, 51, 52, 58, 60, 63, 64, 77, and 78.

  4. There will be no return transaction file (RTF) data on computer generated SFRs.

  5. AM424 with Push Code 036 will generate a TC 595 for IDRS Status Code 03.

  6. If the input passes the AIMS and MF checks, TC 424s with Push Code 036 input before COB on Thursday, will generate a TC 150 over the weekend. For IMF, there will be a TC 150 with a DLN of XX210-888-000-XX-X. For BMF the DLN will be XX-999-999-999-X-XX. A full record will be created on AIMS on Thursday, and a full record on ERCS on the following Monday.

4.4.9.6.3  (05-08-2012)
SFR Posted - Prepare Case for Closing

  1. Before proceeding, by researching IDRS, determine if the taxpayer has filed a return.

    IF THEN
    the taxpayer has NOT filed a tax return with a campus, see IRM 4.4.9.6.3.1.
    the taxpayer HAS filed a tax return with a campus, see IRM 4.4.9.6.3.2.

4.4.9.6.3.1  (05-08-2012)
No Return Filed by Taxpayer

  1. If the taxpayer has not filed a tax return with the campus, follow the procedures below:

4.4.9.6.3.1.1  (05-08-2012)
Prepare Case for Closing

  1. Close the case using normal procedures for agreed or unagreed closures paying special attention to the following:

    1. The starting figures on the RAR must be zero.

    2. In RGS, click the radio button identifying the return as an original return.

    3. The filing status on the RAR cannot be married filing jointly. If the taxpayer is electing married filing jointly, see IRM 4.4.6, Conversion of Returns, and IRM 4.10.8, Report Writing.

    4. Form 5344 - Write "SFR/Original Return" in the top margin. This will alert files there is no original return in the case file although the blocking series used to close the case indicates there is an original return.
      Item 12 - Transaction Code 160 - The delinquency penalty must be addressed on late filed returns. Enter the applicable delinquency penalty or a zero if the delinquency penalty will not be asserted.
      Item 13 - Use the applicable disposal code.
      Item 34 and Item 414 - DO NOT complete. Not applicable for SFR cases.

  2. All SFRs having tax adjustments that follow deficiency procedures with the failure to pay (FTP) penalty applied under IRC 6651(g) must have a Form 13496, IRC Section 6020(b) Certification, completed. See IRM 20.1.2, Penalty - Failure to File/Failure to Pay Penalties, for more information.

    Note:

    Excise and employment are exempt from this requirement.

  3. Include a transcript in the case file showing a posted TC 150.

4.4.9.6.3.1.2  (05-08-2012)
Forward Case to CCP or Technical Services

  1. Send agreed case to CCP with a Form 3198 notated in the comments section "SFR Case" .

  2. Since only the filing of a tax return starts the assessment statute expiration date (ASED), do not update the statute date. It should remain as "EE" .

  3. If the case is unagreed, send it to technical services following normal unagreed case procedures.

4.4.9.6.3.1.3  (05-08-2012)
Centralized Case Processing Closing Procedures

  1. Use normal closing procedures with the following entries on Form 5344:

    1. Item 9 - Complete this block only for IMF returns. Enter Priority Code 9. This code instructs Master File to compute the FTP penalty from the return due date, eliminating the need to use TC 270 which restricts Master File from generating future FTP penalty accruals. See IRM 4.4.12.4.19.6.1, Substitute for Return (SFR) Document 47 Closures - Failure to Pay Penalty, for more information.

      Reminder:

      On BMF returns, Priority Code 9 is systemically generated on the first TC 30X input to a module with an SFR; therefore, no entry is required.


    2. Item 38-40 - Ensure an original return blocking series (00X) is in position 38-40 on the Form 5344.

4.4.9.6.3.2  (05-08-2012)
SFR Posted - Taxpayer Filed Return at Campus

  1. If the taxpayer filed a return with the campus after Examination posts a TC 150 SFR, the campus will input a TC 976/977 which will generate an AIMS weekly update to alert the controlling office that a return was received.

  2. Closing the case depends on whether the campus processes the return or the return is forwarded to the controlling office.

4.4.9.6.3.2.1  (05-08-2012)
Return Processed

  1. If Examination accepts the figures on the processed return, see IRM 4.4.9.5.14.1 for closing procedures.

  2. If Examination does not accept the figures on the processed return, treat the processed return as a partial assessment and see IRM 4.4.9.7.5 for closing procedures.

4.4.9.6.3.2.2  (05-08-2012)
Return Not Processed

  1. Examination must secure a copy of the return. See IRM 4.4.9.7.3 for processing instructions.

4.4.9.7  (05-08-2012)
Delinquent Return Received After SFR TC 150 Posted at Master File

  1. If a return is received after an SFR TC 150 has posted, the amounts on the secured return must be incorporated into a report (RAR or any other type of examination report) and assessed as a TC 300. Do not forward the delinquent return to Submission Processing or CCP for posting of a TC 150.

  2. Request the input of a TC 971 AC 282 using the return received date in the Trans Date field. This updates Master File to show that Examination secured a delinquent return.

4.4.9.7.1  (05-08-2012)
TC 971 Action Code 282

  1. This step must be done by the group as soon as a return is secured. The examiner must prepare Form 3177. Enter an "X" in the box on the bottom of the form marked "Other" . Enter "TC 971 AC 282 Return Received Date MM/DD/YYYY" . Fax the Form 3177 to your CCP office. The fax number can be found on the CCP Examination web site: http://mysbse.web.irs.gov/AboutSBSE/aboutccs/ccsprog/casepro/cp/pro/21596.aspx. Posting of a TC 971 AC 282 at Master File does the following:

    1. For IMF and BMF, updates Master File to show that Examination secured a delinquent return.

    2. For IMF, causes Master File to set the ASED based on the IRS received date.

4.4.9.7.2  (02-01-2006)
Statute Concerns

  1. The correct ASED and RSED must be determined.

4.4.9.7.2.1  (05-08-2012)
Establish ASED at Master File

  1. The input of a TC 971 Action Code (AC) 282 using the return received date in the Trans Date field, establishes the ASED at Master File for IMF cases. The duplicate return freeze on Master File is not set and an AIMS weekly update is not generated.

4.4.9.7.2.2  (02-01-2006)
Establish ASED on AIMS/ERCS

  1. Prepare/input Form 5348, AIMS/ERCS Update (Examination Update), to request the statute date be updated on AIMS and ERCS. Managerial approval is required for statute updates.

4.4.9.7.2.3  (05-08-2012)
Expired Refund Statute Expiration Dates

  1. This procedure relates to the processing of a delinquent return if an SFR TC 150 posted.

  2. When processing any delinquent return where the examiner has determined that a refund is due the taxpayer, ensure the refund statute expiration date (RSED) has not expired. If the RSED has expired, the refund cannot be issued to the taxpayer. Notate RSED expired move credits to excess collections on Form 3198.

4.4.9.7.2.4  (05-08-2012)
Activity Code

  1. Update the activity code on ERCS/AIMS to reflect the income on the delinquent return as soon as possible so the time applied on the examination is reflected under the correct activity code. At the latest, the activity code MUST be updated to reflect the delinquent return by the time the case leaves the group.

4.4.9.7.3  (05-08-2012)
Delinquent Return Secured By Examination After SFR TC 150 Posted - Accepted as Filed Procedures

  1. If there will be no further examination of the return, since a TC 150 is already posted at Master File, the secured return must be processed as a TC 300 and the case closed as an agreed closure. The closed case must be sent to CCP within 7 days of receipt of the return unless the return appears to be fraudulent. In such cases, see IRM 4.4.9.5.11.1 for the proper handling of fraudulent failure to file (FFTFF) penalty cases.

4.4.9.7.3.1  (08-23-2012)
Prepare RAR and Form 5344, Examination Closing Record

  1. Prepare RAR starting with zero per return, to reflect tax, credits, etc. per return. See IRM 4.10.8, Report Writing, for additional instructions.

  2. Complete the Form 5344 as follows:

    • Enter in Item 09 priority code 9 when assessing additional tax.

    • Enter in Item 13 the applicable disposal code. If agreed (disposal code 03/04/09) use the return received date as the agreement date.

      Note:

      Effective March 2009, it is no longer necessary to use Disposal Code 08 on SFR closures. If an agreed disposal code is used, AIMS will not send the agreement date to Master File. Therefore, the interest and penalties will be computed correctly.

    • Enter in Item 12 or 15, the following line items taken from the return using the appropriate reference/transaction codes.
      Adjusted Gross Income
      Taxable Income
      Self Employment Income (including Tip Income, Medicare, etc.)
      Withholding Credit (estimated tax payments must not be included since payments are already posted to Master File)
      Excess FICA
      Tax Liability
      Self Employment Tax
      Earned Income Credit
      Exemptions
      All other applicable items

    • Item 12, Transaction Code 160 - The delinquency penalty must be addressed on late filed returns. Enter the applicable delinquency penalty or a zero if the delinquency penalty will not be asserted.

    • Item 37, Delinquent Return - Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • DO NOT enter anything in Item 414 - The examination results will be calculated on the examination adjustment.

  3. Staple the secured delinquent return to the back of the RAR.

  4. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions for Form 5344 entries.

4.4.9.7.3.2  (05-08-2012)
Forward to Centralized Case Processing (CCP)

  1. Send case to CCP with a Form 3198. Enter the following in the comments section: "SFR TC 150 Posted - Process delinquent return as final closure" .

  2. If multiple returns were secured, instruct CCP to process the balance due years first and cycle in the refund years (if the RSED is not expired) to ensure the refunds are applied to the balance due years.

4.4.9.7.3.3  (02-01-2006)
Centralized Case Processing (CCP) - Closing Procedures

  1. Upon receipt of the case file, CCP will perform the following checks:

4.4.9.7.3.3.1  (02-01-2006)
Transcript

  1. Verify the transcript attached to the return is for the same TIN, name, and MFT as reflected on the delinquent return.

  2. If the name and SSN on the delinquent/SFR does not match the transcript, reject the package back to the Field Office Resource Team (FORT) Unit.

  3. If the return is annotated "Taxpayer Unwilling to Obtain SSN/EIN" , see IRM 4.4.1, Introduction - Exhibit 31, Taxpayer Identification Number.

4.4.9.7.3.3.2  (05-08-2012)
TC 150

  1. Verify an SFR TC 150 has posted on the transcript.

  2. If no TC 150 is posted on the module, forward the package to the FORT Unit explaining there is no TC 150 posted for the taxpayer.

  3. See IRM 4.4.9.5, Delinquent Return Secured - No TC 150 Posted.

4.4.9.7.3.3.3  (08-23-2012)
Payments and Credits

  1. Determine whether the taxpayer owes a balance due on the tax period being processed. The refund may be used to pay off any balance due on the module being processed, but it CANNOT be used to offset any outstanding balance due on any other tax periods.

  2. Process the Form 5344 using a Hold Code 4 to freeze the expired refund.

  3. If payments, credits, or both were transferred from the taxpayer’s account to the Excess Collections File, complete Form 8765, IDRS Control File Credit Application, and forward it to campus accounting function to have the credits transferred back.

  4. If it is determined the refund is barred from being refunded to the taxpayer, it is to be sent to the Excess Collections File via Form 8758, Excess Collections File Addition.

  5. Additional requirements can be found in IRM 3.17.220.2.11, Excess Collections File.

4.4.9.7.3.3.4  (02-01-2006)
Closing Case

  1. Verify entries on Form 5344 match the secured delinquent return.

  2. Verify Form 5344 was completed in accordance with IRM 4.4.9.7.3.1.

  3. Request input of CC AMCLSE to close the case to Status Code 90.

4.4.9.7.4  (08-23-2012)
Delinquent Return Secured by Examination After TC 150 SFR Posted, With Audit Potential - Process Partial Assessment Procedures

  1. If the return is not accepted as filed, because a TC 150 has already posted at Master File, the secured return must be processed as a partial assessment within 7 days of receipt of return unless the return appears to be fraudulent. In such cases, see IRM 4.4.9.5.11.1 for the proper handling of fraudulent failure to file (FFTFF) penalty cases.

  2. Prepare RAR starting with zero per return to reflect tax, credits, etc. per return. If tax per return is zero (before withholding credits or refundable credits or both), do not request a partial assessment. Prepare final RAR starting with per return figures of zero. See IRM 4.10.8, Report Writing, for detailed instructions.

4.4.9.7.4.1  (08-23-2012)
Prepare RAR and Form 5344, Examination Closing Record

  1. Complete Form 5344 as follows:

    • Enter TIN, MFT, Tax Period, Name Control, and Name.

    • Where applicable, in order to ensure the failure to pay penalty is asserted after a delinquent return has been secured, the number "9" should be entered in Item 09 for the "priority code" .

    • For all returns enter the applicable disposal code in Item 13. If agreed (disposal code 03/04/09) use the return received date as the agreement date.

      Note:

      Effective March 2009, it is no longer necessary to use Disposal Code 08 on SFR closures. If an agreed disposal code is used, AIMS will not send the agreement date to Master File. Therefore, the interest and penalties will be computed correctly.

    • Enter in Item 12 or 15, the following line items taken from the return using the appropriate reference/transaction codes.
      Adjusted Gross Income
      Taxable Income
      Self Employment Income (including TIP Income, Medicare, etc.)
      Withholding Credit (estimated tax payments must not be included since payments are already posted to Master File)
      Excess FICA
      Tax Liability
      Self Employment Tax
      Earned Income Credit
      Exemptions
      All other applicable items

    • Item 12, Transaction Code 160 - The delinquency penalty must be addressed on late filed returns. Enter the applicable delinquency penalty or a zero if the delinquency penalty will not be asserted.

    • Do not make any entries in Item 37 or Item 414.

  2. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions on Form 5344 entries.

4.4.9.7.4.2  (05-08-2012)
FAX to Centralized Case Processing (CCP)

  1. The group will fax the partial assessment request to CCP and include the following:

    • First 2 pages of the return - include Schedule SE, if applicable

    • RAR

    • Form 5344

    • Form 3198 with "SFR TC 150 Posted - Process delinquent return as partial assessment" entered in the Special Features section

  2. The fax information for CCP is located on the CCP website: http://mysbse.web.irs.gov/AboutSBSE/aboutccs/ccsprog/casepro/cp/pro/21596.aspx

  3. After CCP makes the assessment, maintain the Form 5344 stamped "Request Completed" in the case file. See IRM 4.4.9.7.4.3.4.

4.4.9.7.4.3  (02-01-2006)
Centralized Case Processing (CCP) Procedures

  1. Ensure Form 5344 was prepared in accordance with IRM 4.4.9.7.4.1.

  2. Perform the following checks:

4.4.9.7.4.3.1  (02-01-2006)
Transcript

  1. Pull a transcript and verify the transcript matches the return.

  2. If the name and SSN on the delinquent return does not match the transcript, forward the package to the FORT Unit.

  3. If the return is annotated "Taxpayer unwilling to obtain SSN/EIN" , see IRM 4.4.1, Introduction - Exhibit 23, Taxpayer Identification Number.

4.4.9.7.4.3.2  (02-01-2006)
TC 150

  1. Verify an SFR TC 150 is posted on the transcript.

  2. If no TC 150 is on the module, send the package to the FORT.

  3. Procedures in IRM 4.4.9.5 must be followed.

4.4.9.7.4.3.3  (08-23-2012)
Payments and Credits

  1. If payments, credits, or both were transferred from the taxpayer’s account to the Excess Collections File and the refund statute expiration date has not expired, complete Form 8765 and forward it to campus accounting function to have the credits transferred back.

  2. Attach a transcript of the account showing the payments, credits, or both.

4.4.9.7.4.3.4  (02-01-2006)
Make Assessment

  1. Request input of CC AMCLSF or manual assessment if required, to assess the partial assessment. Stamp Form 5344"Request Completed" and fax copy back to the field group for association with the original return in the case file.

4.4.9.7.5  (05-08-2012)
Delinquent Return Secured by Examination After TC 150 SFR, With Audit Potential - Final Closing Package (Partial Assessment Processed)

  1. When a delinquent return is secured after a TC 150 has posted and the secured return has audit potential but zero tax liability, no partial assessment is required.

  2. If using RGS, a secured delinquent return with audit potential that is accepted with a zero tax liability should be input into RGS return setup as filed. The subsequent examination report should reflect the tax return values as the starting point.

  3. Follow normal closing procedures with the exception of additional closing procedures below.

4.4.9.7.5.1  (08-23-2012)
No Additional Adjustments Required/Prepare RAR and Form 5344, Examination Closing Record

  1. Prepare a no change RAR. See IRM 4.10.8, Report Writing, for detailed instructions.

  2. Complete Form 5344, paying special attention to the following fields:

    • Item 12 will be zero.

    • Item 13, Disposal Code
      For Non-Income Tax Returns (MFT's other than 02, 05, 30, 33, 51, 52, 77 or 78), use the applicable Agreed Disposal Code.

      Note:

      If using RGS, the Form 5344 Disposal Code must be 01. On the Form 3198 state "Manual Closing Required - Correct Disposal Code is XX" (XX = disposal code used on the partial assessment). If NOT using RGS, use the applicable disposal code.


      For Income Tax Returns (MFT's 02, 05, 30, 33, 51, 52, 77 or 78):

      Note:

      If using RGS, the Form 5344 Disposal Code must be 01. On the Form 3198, state "Manual Closing Required - Correct Disposal Code is XX." (XX = disposal code used on the partial assessment). If NOT using RGS, use the applicable disposal code.

    • Item 15 will be zero unless a partial assessment was not requested, in which case Item 15 must reflect the adjusted gross income, taxable income, etc. from the delinquent return.

    • Item 37, Delinquent Return. Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • DO NOT enter anything in Item 414. The examination results will be calculated on the partial assessment made previously.

  3. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions for Form 5344 entries.

  4. Staple the secured delinquent return to the back of the RAR.

  5. If multiple returns were secured, instruct CCP to process the balance due years first and cycle in the refund years to ensure the refunds are applied to the balance due years.

4.4.9.7.5.1.1  (05-08-2012)
Forward to Centralized Case Processing (CCP)

  1. Update AIMS/ERCS to Status Code 51 and forward the case file along with a Form 3210 to the appropriate CCP campus.

  2. See the contact list posted under the document section on the AIMS web site: http://mysbse.web.irs.gov/exam/mis/contacts/default.aspx for the address.

4.4.9.7.5.1.2  (02-01-2006)
Centralized Case Processing Procedures

  1. Close the case using normal procedures for agreed closures.

  2. Ensure Form 5344 was prepared in accordance with IRM 4.4.9.7.5.1.

4.4.9.7.5.2  (05-08-2012)
Additional Adjustments Required/Prepare RAR and Form 5344, Examination Closing Record

  1. The group will prepare the RAR using the partial assessment amounts as the starting figures. See IRM 4.10.8, Report Writing, for detailed instructions. If no partial assessment was processed because the tax was zero, the starting figures will be the amounts shown on the return filed by the taxpayer.

  2. Complete Form 5344 paying special attention to the following fields:

    • Item 12 and 15 as applicable. Transaction Code 160 - The delinquency penalty must be addressed on late filed returns. Enter the applicable delinquency penalty or a zero if the delinquency penalty will not be asserted.

    • Item 13, Disposal Code. Use the applicable changed disposal code

    • Item 37, Delinquent Return. Do not make an entry in Item 37. This field is only used for secured delinquent returns if there is NO TC 150 posted.

    • Item 414, Delinquent Return Amount. DO NOT enter anything in Item 414. The examination results will be calculated on the partial assessment made previously and the final assessment.

  3. Staple the secured delinquent return to the back of the RAR.

  4. See IRM 4.4.12, Examined Closings, Surveyed Claims and Partial Assessments, for additional instructions for Form 5344 entries.

4.4.9.7.5.2.1  (05-08-2012)
Forward to Centralized Case Processing (CCP) or Technical Services if Unagreed

  1. If agreed, update the status code on AIMS/ERCS to 51 and forward the case file along with a Form 3210, to the appropriate CCP campus. See the contact list posted under the document section on the AIMS web site: http://mysbse.web.irs.gov/exam/mis/contacts/defualt.aspx for the address.

  2. If unagreed cases: follow normal unagreed procedures, update the status code on AIMS/ERCS to 21 and forward to Technical Services.

4.4.9.7.5.2.2  (02-01-2006)
Centralized Case Processing Procedures

  1. Close the case using normal procedures.

  2. Ensure Form 5344 was prepared in accordance with IRM 4.4.9.7.5.2.


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