4.119.1  BMF Underreporter (BMF AUR) Control

Manual Transmittal

August 16, 2013

Purpose

(1) This transmits revised IRM 4.119.1 Liability Determination Business Automated Underreporter (BMF AUR) Control for Tax Year 2012.

Background

IRM 4.119.1 contains information for clerks on their responsibilities relating to the BMF AUR clerical process.

Material Changes

(1) Through out the IRM see also references have changed due to adding or deleting sub sections.

(2) Through out the IRM editorial changes have been made

(3) Through out IRM renumbered parens due to adding or deleting parens

(4) IRM 4.119.1.7.21 (3) new

(5) IRM 4.119.1.4.3.1 (4) removed TY 2012 references

(6) IRM 4.119.1.5.23 (8) table, dates changed

(7) IRM 4.119.1.5.38 (9) table, dates changed

(8) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.4.3.2 Inserted batch type 730 and deleted batch type 720.

(9) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5 Sub tri docs 46 thru 60 renumbered due to creating batch type 940.

(10) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.48 Added the word Research

(11) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.48(1) Deleted 49TR and 49LT

(12) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.58 Added 990 to title and a "s" to closure

(13) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.29(2) Deleted batch type 970 and added batch type 950

(14) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.23(10) Deleted the word ARDI and inserted the words identified as over a million dollar tax increase

(15) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.38(11) Deleted the word ARDI and inserted the words identified as over a million dollar tax increase

(16) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.44(7) Deleted the words as ARDI and inserted the words identified as over a million dollar tax increase

(17) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.7.19 Deleted Tri Doc Process Code 4480

(18) IPU 13U0806 issued 04-25-2013 Exhibit 4.119.1-3 Removed Process Codes 4480 and 4490.

(19) IPU 13U0806 issued 04-25-2013 Exhibit 4.119.1-4 Added Form 8821

(20) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.6(4) Deleted flow thru cases (PC 4480 and 4490)

(21) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.6.1(4) Deleted process codes 4480 and 4490

(22) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.2.3(1)Table deleted process codes 4480 and 4490

(23) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.21(3) f) Added TC 604

(24) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.28(3) j) Added TC 604

(25) IPU 13U0806 issued 04-25-2013 Exhibit 4.119.1-2 Deleted internal process code 43EX

(26) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.9.22 Deleted Rework Case Listing

(27) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.46 Created new Batch Type 940 Manual Recons

(28) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.47 Created new Batch Type 950 Reconsideration Suspense

(29) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.5.49 Created new Batch Type 980 Quick Closures

(30) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.35 Created new Internal Process Code 4950 Recon Manual Case

(31) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.7.52 Created new Process Code 4980 Quick Closures

(32) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.31 Deleted Internal Process Code 4900

(33) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.32 Deleted Internal Process Code 4910

(34) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.33 Deleted Internal Process Code 4920

(35) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.34 Deleted Internal Process Code 4930

(36) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8.35 Deleted Internal Process Code 4940

(37) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.8 Sub tri docs 36 thru 39 renumbered due to deleting Internal Process Codes 4900 thru 4940

(38) IPU 13U0806 issued 04-25-2013 IRM 4.119.1.2.1(3) Second bullet deleted the word blank and inserted UA

(39) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.1(3) added 870 to bullet list

(40) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.3(6) second bullet deleted (XXX) and added 898

(41) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.9(2) added fourth bullet Reconsideration Suspense BT 950

(42) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.13(2) added 91 file location to table for Ogden Campus

(43) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.19(2) added PC 4710

(44) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.23(2) deleted (3) now (2)

(45) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.25(2) deleted steps 4 and 5 remaining steps renumbered

(46) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.2.26.1(1) changed Note to be (2)

(47) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.2(6) changed BT 831 to BT 83X

(48) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.3(2) renumbered reject conditions (3) added c) and note (4) deleted

(49) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.4(4) deleted

(50) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.5.1 Tri Doc added for Discovered Remittance

(51) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.5.5.1(1) new b) added and (4) reworded

(52) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.3.6(2) note deleted (3) deleted (4) thru (5) renumber (4) c) deleted

(53) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.4.2(2) deleted blank value and inserted "UA"

(54) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.4.3.1(6) 1) deleted 2) thru 7) renumbered (6) 4) note reworded (6) 6) note deleted (7) 1) deleted last sentence

(55) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.4.3.2.1(10) added ensure the batch is closed deleted 4 to exit in (10) and made it (11)

(56) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.4.4(1) second bullet deleted note (2) added new step 6)

(57) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.8 added (3)

(58) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.10 added (3) thru (10)

(59) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.11(4) new

(60) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.16 added (3)

(61) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.18(3) deleted steps 4) and 5) and renumbered

(62) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.19(1) IPC 43LT and 43 PH deleted (3) 5) note deleted

(63) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.21 new Tri Doc

(64) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.21.1 new Tri Doc

(65) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.21.2 deleted

(66) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.24(1) reworded (4) second note deleted (7) both notes deleted

(67) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.25(3) reworded note deleted (8) both notes deleted

(68) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.27(5) second note deleted and moved to (7) as new a)

(69) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.28(3) added l) in alpha list

(70) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.30(5) is now (4)

(71) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.32(3) new (4) (5) deleted

(72) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.33(3) deleted 4) and 5) in step list

(73) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.34(2) 5) note deleted

(74) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.35(3) 5) note deleted (10) new note

(75) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.36(3) deleted

(76) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.38(2) note deleted (3) a) added Letter 4550C

(77) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.39(5) delete second note and moved to (7) as new a)

(78) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.40(3) revised (4) (5) (6) deleted

(79) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.41(5) 2nd note deleted and moved to (7) as new a)

(80) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.42 (3) deleted steps 4 and 5

(81) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.44(2) new (6) added new c (9) new note

(82) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.46 added new (3)

(83) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.51(4) deleted step 6

(84) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.52(3) deleted first sentence (6) new

(85) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.5.56(6) second sentence deleted and moved to (7) step 8 new note (8) changed 845

(86) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.6(3) removed 2 bullets added PC's 4160, 4170, added new (7)

(87) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.6.1(4) deleted

(88) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.6.4(2) moved to new (4)

(89) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.24(3) new

(90) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.26(5) deleted

(91) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.31(5) new

(92) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.32(5) new

(93) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.33(3) new

(94) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.7.39(5) deleted

(95) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.8.30(2) note new

(96) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.9.21(3) second bullet new

(97) IPU 13U1255 issued 07-19-2013 IRM 4.119.1.9.25(1) added CP2531

(98) IPU 13U1255 issued 07-19-2013 Exhibit 4.119.1-2 PC 4950 added

Effect on Other Documents

This material supersedes IRM 4.119.1 dated 10/01/2012. The following IRM Procedural Updates have been incorporated into this IRM: 13U0806 (dated 04/25/2013) and IPU 13U1255 (dated 07/19/2013).

Audience

BMF AUR clerical employees.

Effective Date

(10-01-2013)

/s/Scott B Prentky
Director
SB/SE Compliance Division

4.119.1.1  (10-01-2013)
Overview

  1. The Business Master File Automated Underreporter (BMF AUR) program is separated into four phases:

    • Case Analysis (may also be referred to as Screening)

    • Response, includes both CP 2531 and CP 2030

    • Statutory Notice, legally required final notice (abbreviated as Stat)

      Note:

      See Exhibit 4.119.1-1, Glossary, that includes terms, acronyms and abbreviations used in BMF AUR.

    • Reconsiderations (closed case correspondence)

  2. The Case Analysis phase is the initial screening of a case. A technical determination is made whether:

    • A notice needs to be generated

    • A case needs to be referred and/or researched

    • A case can be closed without further action

    • A case should be transferred to another function

  3. There are two other processes that are completed in the Case Analysis phase:

    • Correction of CP 2030 rejects

    • Completion of previously referred or incomplete cases

  4. The clerical functions to support these processes are:

    • Building batches

    • Inputting manual assessments, identified by tax examiners (TE), into Integrated Data Retrieval System (IDRS)

    • Associating returns and/or transcripts to case files

    • Refiling closed cases

    • Verifying Process Codes

    • Disassembling batches

    • Associating the case folder and return

    • Pulling notices identified as erroneous from the notice mailout

    • Pulling and batching reject cases

    • Preparing cases for transfer or referral to other areas

    • Setting up suspense files in Case Sequence Number (CSN) order

    • Remail of undeliverable or erroneous notices

  5. The Response Phase of the BMF AUR Program is the resolution of the BMF AUR issue addressed in the:

    • CP 2531, Initial Contact Letter

    • CP 2030, Notice Proposing Adjustment to Income, Payments, or Credits

    • Subsequent Correspondex (e.g., Letter 4552C, Letter 4550C, Letter 4551C, Letter 2627C, etc.), or

    • Recomputed CP 2030

  6. The CP 2531 or the CP 2030 issues can be resolved by a response from the taxpayer. If the response does not resolve the issue, there is no response, or if the notice is undeliverable, a CP 2030 notice or a Statutory Notice is issued.

  7. The response may result in:

    • Closure and refile

    • Assessment

    • Miscellaneous Referral

    • Research (Unit Suspense)

    • Transfer to another area (e.g., Examination or Criminal Investigation)

    • Additional correspondence to resolve the issue

  8. The clerical functions to support these processes are:

    • Building batches

    • Associating responses to the CP 2531, CP 2030, recomputed notices, and letters with the case files

    • Verifying Process Codes

    • Disassembling Batches

    • Assessing tax deficiencies to taxpayers' business accounts

    • Preparing cases for transfer or referral to other areas

    • Mailing additional correspondence

    • Sending closed cases to the Federal Records Centers (FRC) to be refiled

    • Preparing no response cases for continued processing; CP 2531 to CP 2030 and CP 2030 to Statutory Notice, including all exception handling

  9. The Statutory Notice phase of the BMF AUR Program is the resolution of the BMF AUR issue addressed in the Statutory Notice of Deficiency (CP3219B) and Waiver (Form 4089, Notice of Deficiency - Waiver). If the response does not resolve the issue, there is no response, or if the notice is undeliverable, the Statutory Notice is defaulted.

    Note:

    The default process is the preparation of Statutory Notice cases for assessment and closure, including all exception handling.

  10. The Statutory Notice issues can be resolved by a response from the taxpayer. The case is defaulted when:

    • Responses from the taxpayer do not resolve the issue(s), and the Statutory suspense period has expired

    • No response is received

    • The Post Office has returned the notice as undeliverable and IRS has no record of a better address. See IRM 4.119.1.2.26.3, Undeliverable Statutory Notices, for additional information

  11. The Reconsideration phase of the BMF AUR program is the handling/resolution of correspondence received from a case that is closed on the BMF AUR system. Correspondence from closed cases is primarily on of the following three types:

    1. A taxpayer request for a change in the BMF AUR assessment made on the case.

    2. Correspondence that does not require a tax examiner to resolve - these are not requests for a change to the BMF AUR assessment.

    3. Misrouted correspondence that has no impact on the previous BMF AUR case.

    Note:

    Reconsideration (closed correspondence) received will be handled per the instructions in IRM 4.119.1.5.45, Reconsideration Response Batch Building.

  12. See Exhibit 4.119.1-4, Titles of Forms, for a complete list of Forms and their titles used in this IRM.

4.119.1.1.1  (10-01-2012)
Taxpayer Advocate Service

  1. Even though the IRS strives to improve its systems and provide better service, some taxpayers still have difficulty in getting solutions to their problems or appropriate, timely responses to their inquiries. The purpose of the Taxpayer Advocate Service (TAS) is to give taxpayers someone to speak for them within the IRS. Information on the new TAS Case Acceptance Criteria and how and when to refer a taxpayer to TAS is available in IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria.

4.119.1.2  (10-01-2012)
General Case Processing

  1. This section deals with general information about the BMF AUR system, the Underreporter program and case processing. The topics in this section of the IRM are listed in alphabetical order for ease of research and use.

4.119.1.2.1  (10-01-2013)
Action 61/Policy Statement P-6-12 Guidelines

  1. Policy Statement P-6-12 (formerly known as Action 61) Guidelines are the result of a task force initiated to provide timely and quality responses to taxpayer correspondence. The general guidelines are:

    1. A quality response is an accurate and professional communication which, based on information provided, resolves the taxpayer issues, requests additional information from the taxpayer, or notifies the taxpayer we have requested information from outside the IRS.

    2. A quality response is timely when initiated within 30 calendar days of the IRS received date.

    3. When a quality response cannot be issued timely, an interim response must be initiated by the 30th calendar day from the IRS received date. Use Letter 4314C.

    4. All interim letters should inform the taxpayer when a final response can be expected and provide a contact name and number for additional inquiries.

  2. The BMF AUR system automatically generates an interim letter, (Letter 4314C) when the IRS received date exceeds a specific number of days as determined by the BMF AUR Coordinator.

  3. A Letter 4314C is system generated for cases in Batch Types (BT):

    • 430

    • 440

    • 530

    • 540

    • 560

    • 730

    • 740

    • 870

    • 880

    • 910

    The Batch Status must be:

    • UA

    • Associated Batch (AB) or

    • Suspense Batch (SB)

4.119.1.2.2  (10-01-2013)
Address Updates

  1. When a change of address is identified on an agreed correspondence (BT 510 or 710), update the address.

  2. To change a domestic address, access the Address Update window by taking the following Actions:

    1. Select Control from the BMF AUR menu tree.

    2. Select Case from the Control sub menu.

    3. Double click Update Address from the expanded menu.

    4. Enter taxpayer identification number (TIN).

    5. Enter address type "M" in the ADDRESS TYPE field.

    6. Enter name change if needed in the PRIMARY NAME field. Use the PRIMARY NAME CONT field if necessary.

      Caution:

      If any of the first four characters need to be changed, photocopy the request and forward it to the Entity function.

    7. Enter the updated street address in the MAIL STREET field.

    8. Enter the city or a valid major city code in the MAIL CITY field.

    9. Enter a valid state code in the MAIL STATE code field.

    10. Enter the 5, 9 or 12- digit ZIP code in the ZIP field. The system validates the zip code according to the state code that has been input.

    11. Click the Save Icon on the tool bar to commit the change.

    Note:

    The address update option can also be accessed while in the batch building screen:

  3. To change a Foreign address take the following steps:

    1. Select Control from the BMF AUR menu tree.

    2. Select Case from the Control sub menu.

    3. Double click Update Address from the expanded menu.

    4. Check the FOREIGN field to display a new address field if applicable.

    5. Enter taxpayer identification number (TIN).

    6. Enter address type "M" in the ADDRESS TYPE field.

    7. Enter name change if needed in the PRIMARY NAME field. Use the PRIMARY NAME CONT field if necessary.

      Caution:

      If any of the first four characters need to be changed, photocopy the request and forward it to the Entity function.

    8. Enter the updated foreign street address in the FOREIGN STREET field.

    9. Enter the city and the foreign postal code in the FOREIGN CITY/ZIP field.

    10. Select from the drop down in the FOREIGN COUNTRY field the applicable country.

    11. Click the "Save Icon" on the tool bar to commit the change.

    Note:

    The address update option can also be accessed while in the batch building screen:

4.119.1.2.3  (04-25-2013)
Assessments

  1. The system automatically creates an assessment record on all appropriate cases with Process Codes (PCs): 4670, 4870, and 4850, 4860, 4810, 4820, 4830 and for all MeF cases with Process Codes (PCs) 4340 4400, 4420, 4440, 4550, 4600, 4610 and 4630 up until a locally determined date, but no later than the dates shown below.

    Note:

    The TE verifies and/or inputs the necessary assessment information for all other PCs.

    Tax Year Assessment Type Date
    2011 All PCs 4670 and MeF PCs 4400, 4440, 4420, 4550, 4600, 4610 and 4630 01/02/2015
    2011 All PCs 4810, 4820, and 4830,4850, 4860 and 4870 05/01/2015

  2. After dates designated above or the locally determined dates, ALL assessments must be input via IDRS.

    1. Print the assessment document and associate it with the case after the process codes are verified and before the batch is updated to "RB" .

    2. Manual assessments should receive priority handling to insure that the assessment is input on IDRS before the upload of the corresponding process codes, since the process code closes the IDRS control base.

  3. The BMF AUR system creates a tape to upload assessment information to IDRS - except on cases where the TE has determined that a manual assessment should be done. Manual assessments are input directly to IDRS.

  4. BMF AUR assigns a sequence number to each assessment record based on the order the process code verification process is completed.

  5. Assessment volumes are limited for each blocking series. The BMF AUR Coordinator and the Computer Service scheduler ensure that daily limits per blocking series are set correctly, and that the combination of automated and IDRS assessments do not exceed the daily input limitations.

    • 2,000 for Blocking Series 550–569 (1120 series BMF -URP Refile DLN for paper returns) CP 2531 or CP 2030)

    • 1,000 for Blocking Series 570–579 (1120 series BMF-URP Non-Refile DLN for electronically filed returns) CP 2531 or CP 2030)

    • 1,000 for Blocking Series 580–589 (1120 series BMF-URP Adj Stat Notice Refile DLN for paper returns Stat)

    • 1,000 for Blocking Series 590–599 (1120 series BMF-URP Adj Stat Notice Non-Refile DLN for electronically filed returns )

    • 1,000 for Blocking Series 640-649 (1040 series, 1065, 1041, BMF URP Refile DLN for paper or electronically filed returns)

    To accommodate increased volumes of inventory, the File Location Codes (FLC) (first two digits of the Document Locator Number (DLN)) for BMF AUR assessments have been expanded. If daily volumes for a blocking series are exceeded, the additional assessments roll to the next FLC per the Table below:

    BMF AUR Site File Location Codes (in the order used)
    Ogden 29, 60, 78, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 99

  6. Each released batch has its own adjustment sequence series and this order MUST be maintained during the shipping to Files. The employee number is composed of ten digits as follows:

    • The first two digits represent the Campus

    • The next three digits represent the BMF AUR Employee Group (EGC) Code (898)

    • The last five digits represent the BMF AUR Batch Number

  7. Ship assessments to the Files Operation for Form 5147 association. The Campus should work with the Files Operation to determine how to prepare and ship the assessments.

    Note:

    Batch Types 510, 610, 710, 790 and 810 do not generate the auto assessment listing, use a batch listing as the transmittal document.

4.119.1.2.4  (10-01-2012)
Bar Coding

  1. The bar code printed on the Form 4251 generated for paper returns contains the Taxpayer Identification Number (TIN) and tax year of the associated case. The bar code is scanned to build batches in all phases of the program and can be used to verify and update the processing of cases (e.g., batch disassembly of cases by process code).

  2. If response batches are built using only the taxpayer correspondence as the input document, the TIN cannot be scanned; the TIN must be key entered.

    Note:

    It is important not to dispose of Form 4251 generated for paper returns until a case is closed. Keep the Form 4251 in the front of the paper cases with the bar code visible so it can be scanned easily. If a Form 4251 needed for processing is inadvertently thrown away, print another if necessary.

    Note:

    Form 4251 is not generated for MeF (Virtual) cases for TY 2012 and subsequent. Beginning TY 2012 the system auto batches all MeF Virtual cases . A batch and work unit listing are available to print (in lieu of Form 4251). TEs input the Process Codes on the individual work unit listing. Utilize this listing to verify the Process Codes.

  3. The BMF AUR bar code on the CP 2531, CP 2030/Recomp, and Statutory Notice contains the following:

    1. TIN in the first position.

    2. Tax Year after the TIN.

    3. An indicator, in the final position. See (4) below.

  4. The indicators identify the copy of the notice and are:

    • 1 for primary taxpayer

    • 3 for Power of Attorney (POA)

    • 4 for a second Power of Attorney (POA)

4.119.1.2.5  (10-01-2013)
Case History Screen

  1. The Case History Screen contains information about the movement and actions taken on a case through the BMF AUR processing. This section provides a brief explanation of each field.

    • TIN - The taxpayers identification number of the case

    • TIN TYPE Identifies if the TIN is a SSN or EIN

    • FORM This field displays the Form type being worked

    • TIN VALITY Box next to TIN with a numaric value of 0, 1 or 3 identifies the validity of the TIN.

    • VIRTUAL Case - "V" Indicates a Virtual case

    • NAME CTRL - The first four letters of the taxpayer's business name

    • SEID - This field displays the employee user identification number if the case has been assigned to an employee

    • BATCH - The first three digits are the type of batch and the last five digits show the sequence number of the batch within the batch type

    • AREA OFFICE - The code that identifies the IRS Area Office associated with the tax return

    • SUB FILE - An alpha character that further defines the Category, sub-program within Underreporter for which the case was developed

    • LOCATION - The identification number of the unit to which the batch is assigned

    • CSN - The case sequence number

    • SUB CATEGORY - Identifies the potential tax change of the case

    • REQ SEID - The number to identify the user requesting a case from the suspense file

    • BATCH STATUS - A code assigned to each batch describing its status (i.e., "AU" , "BF" )

      Note:

      See IRM 4.119.1.4.2, Batch Status Codes.

    • CATEGORY - The type of underreported income

    • TP INFO - Radio button that allows access to the TP Information screen

    • STATUS DT - Date the status of a batch is updated (mmddyyyy format)

    • PC - The process code of the case. It shows the condition of a case or the action taken on a case

    • RECON CODE - If applicable, identifies the Recon Code used on the case

    • Originator - The identification number of the employee who entered the corresponding process code on the case

    • PC DATE - The date the process code was input

    • POSTED DATE - The transaction date of the process code that Service Center Replacement System (SCRS) posted to be sent to ECC-MTB (mmddyyyy format)

    • PREV CSN - The previous case sequence number of the case

    • PREV LOCATION - The previous location of the batch before a transfer is complete

    • IRS RECEIVED DATE - The date associated with the correspondence type

    • SYSTEM RECEIVED DATE - The date correspondence is entered into the system

    • ACTION - Types of action (i.e., correspondence, assessment) taken on a case

    • ACTION CODE - Indicates whether correspondence is remailed with a new address, is undeliverable and should be cancelled, or the notice was rejected. The indicators are:
      T - True Undeliverable
      M - Remail with new address
      R - Rejected
      U - New address/actions exist
      C - Cancelled CP 2030 (notice information maintained)
      S - Statutory notice not mailed
      D - Notice information deleted

    • PROCESS CODE Description - Displays brief description of the last Process Code used

    • RECON CODE Description - Displays brief description of the last Recon Code used

  2. To access the Case History screen take the following actions:

    1. Select the tax year from the BMF AUR Year menu.

    2. Select Control from the BMF AUR menu tree.

    3. Select Case from the sub menu.

    4. Double click Case History from the expanded menu.

    5. Enter the TIN and hit <ENTER>.

4.119.1.2.6  (10-01-2013)
Case Sequence Number (CSN)

  1. As each case is built into the BMF AUR system it is assigned a twelve-digit CSN. The CSN corresponds to the location of a case. The CSN is composed of different elements, depending on whether or not a case is in a regular batch or a suspense batch.

  2. The CSN of a regular batch consists of four sections. The definitions of the numbers in sequence (left to right) are:

    • Batch type (first three)

    • Batch sequence number (next five)

    • Work unit where the case is located next (1-29 work units)

    • Document/case number within the work unit (1-15 cases per work unit)

  3. The CSN of a suspense batch consists of three sections. The definition of the numbers in sequence (left to right) are:

    • Batch type (first three)

    • Batch sequence (next five)

    • Document/case number within the batch. When the document number reaches 99,999, the batch sequence number increases by one and the document number within the batch starts at 00001

  4. The CSN is displayed on the Case History Screen.

  5. A new CSN is assigned each time the case is built in to a new batch.

4.119.1.2.7  (10-01-2012)
Charge-outs (Form 4251)

  1. Initial charge-outs (Form 4251) are produced and routed to the Campus Files Operation.

    1. If the return has not been retired to the Federal Records Center (FRC), Campus Document Retention, Files Operation, pulls the return and routes it to the BMF AUR Operation.

    2. If the return has been retired to the FRC, Campus Document Retention, Files Operation, routes the charge-out to the appropriate FRC. The FRC pulls the return and routes it to the BMF AUR Operation.

    3. If the return is not available, FRC notes the available charge-out information on the Requestor Copy, which is forwarded to the appropriate campus with the charge-out information.

  2. There are certain File Location Codes that indicate the tax return was filed electronically. See IRM 4.119.1.2.13 (2), Modernized e File System, for a complete list of these Codes.

  3. For TY 2011 charge-outs are printed for electronically filed returns (MeF). Use the charges outs to build batches and refile taxpayer's correspondence. Beginning TY 2012 and subsequent the system auto batches the cases into Screening BT 001-099 and are identified as "Virtual batches" (no physical case). The batches are systemically closed and updated to "AB" status. A batch and work unit listing is available to print. TEs input the Process Codes on the individual work unit listing. Use this listing to verify the Process Codes.

  4. For TY 2012 and subsequent Charge outs are not printed for electronically filed returns (MeF) A batch and work unit listing is available to print. TEs input the Process Codes on the individual work unit listing. Use this listing to verify the Process Codes.

4.119.1.2.8  (10-01-2013)
Complete Cases

  1. A complete case in the system includes the following:

    • A tax return (or tax return data on the BMF AUR system)

    • Information return (IR) data

    • Tax account information

  2. Paper tax returns and charge-outs are forwarded to the BMF AUR Program for sorting, batching and case control based on workload demands.

4.119.1.2.9  (10-01-2013)
Correspondex Letters

  1. A Correspondex letter is issued to taxpayers when the case requires additional information (e.g., Letter 4552C , Letter 4550C or Letter 2627C).

  2. The system assigns the mailout/notice date when the batch status is updated to "RB" (Release Batch). The system automatically moves cases to the appropriate suspense batch after process code verification and the batch is updated to status "RB" .

    • CP 2531 Letter Suspense BT 470

    • CP 2030 Letter Suspense BT 670

    • Statutory Notice Suspense BT 700

    • Reconsideration Suspense BT 950

  3. Letter information (cases with Internal Process Code (IPC) 43LT, 45LT, 47LT and 49LT) is uploaded daily to Correspondex and generates letters from the BMF AUR system. The letters are dated three to five days from the date the batch status was updated to "RB" .

    Note:

    IPC 45EX, is also uploaded daily but does not generate a letter to the taxpayer.

    Example:

    This example is based on five days: if the batch was updated to "RB" status on 10/15/20XX, the letters are dated 10/20/20XX, and are suspensed for the week ending 10/23/20XX. The system ages the letters by the week ending date.

  4. The Suspense Summary report displays the Saturday week ending date for letters released from Monday to Friday in the Projected Notice/Letter Date field on the report. The week ending date for CP 2531 Letter Suspense BT 470 and CP 2030 Letter Suspense BT 670 may contain more than one letter date.

  5. Statutory Notice Letter (IPC 47PH and 47LT) cases are filed under the original Statutory Notice case sequence number. The Suspense Summary report also displays REFILE in the Batch field to indicate these cases are suspended under the original Statutory Notice date in CSN order.

    Caution:

    The terms refile, refiling and Internal Process Code (IPC) "RF" refer to the suspense files maintained in BMF AUR - DO NOT SEND THESE CASES TO CAMPUS FILES OPERATION (DOCUMENT RETENTION).

  6. Cases with IPCs 43PH or 45PH have taxpayer correspondence in the folder. These cases will move in to BT 470 and BT 670 letter suspense batches when the batch is updated to "RB" status.

    Note:

    The system dates these cases one day from the date the batch is updated to "RB" status. The Suspense Summary report displays the Saturday week ending date of these cases in the Projected Notice/Letter Date field.

4.119.1.2.10  (10-01-2012)
CP 2030 Coding/Deposit String

  1. Each CP 2030 contains a coding/deposit string that is used by the Receipt and Control/Deposit function to assist them in posting payments to the taxpayers account.

  2. The string appears at the bottom of the CP 2030 page that provides the return address.

  3. The string consists of the following information (left to right):

    1. The TIN of the account.

    2. The two-character check digits used on the peel-off name and address label the taxpayer attaches to the tax return.

    3. Taxpayer's Business Name Control.

    4. Master File Tax Account Code - the MFT is 02, 05, 06, or 30 depending on the return type.

    5. Tax Year.

    6. The IDRS Transaction Code used to post the URP/BMF AUR amount due.

    7. CP 2030 amount due. The last two digits are always zeroes (to represent zero cents).

4.119.1.2.11  (10-01-2012)
Disaster Area Cases

  1. For a designated number of days following a disaster/emergency, new correspondence is not sent and cases in Statutory Notice Suspense are not defaulted if the case file address is in the designated disaster/emergency areas, unless a TE has determined there are compelling reasons to contact the taxpayer sooner.

    Note:

    The number of days to hold correspondence and delay defaulting is determined by an IRS Disaster Relief Memorandum granting tax relief to a disaster/emergency area.

  2. IN ALL CASES, be aware of the Statute Expiration Date. You must ensure that the Statute of Limitations is protected for all assessments. Do not hold these cases beyond December 15 before the statute year. After this date, all cases must be given to the Statute Coordinator for default assessments.

4.119.1.2.12  (10-01-2013)
Docketed Appeals Cases

  1. Taxpayers generally have 90 days to petition the Tax Court to dispute a Statutory Notice of Deficiency. If the Statutory Notice of Deficiency is addressed to a person outside the United States, the time is extended to 150 days.

    Note:

    Disaster relief may also extend the period a taxpayer has to petition Tax Court. The system identifies these cases and they remain in Statutory suspense until the disaster end date expires.

  2. Docketed cases are high priority. Work these as soon as they are received. Docket procedures should be completed within 7 calendar days of BMF AUR receiving the request.

    Note:

    If a response is received on a case that has been closed PC 4800, it should be treated as a Recon.

  3. Newly docketed Tax Court cases are available on the daily Tax Litigation Counsel Automated Tracking System (TLCATS) New Docketed Case List By Source, which contains the following information:

    • Docket number

    • Date of the Statutory Notice

    • Business name, address and TIN ( taxpayer identification number)

    • Tax Years in Statutory Notice, Tax Years Petitioned to U. S. Tax Court (Tax Year)

    • Source of Statutory Notice, Appeals Office and Counsel Office information

    • Campus function and location number in a high-lighted box to the right of the entry

  4. Use listing to research that the case has been closed with process codes 4340, 4400, 4420, 4440, 4460, 4550, 4600, 4610, 4630, 4660, 4810, 4820, 4830, complete Form 14121 No Change Certification, and fax to the Ogden Campus Appeals Office.

  5. If research indicates the BMF AUR case is closed with process codes other than listed above:

    1. Notate on the Form 3210"Closed BMF AUR Case" and "Request return if needed" .

    2. Print the latest CP 2030 and the Case Contents (Tax Account, Information Returns, Case History, all CP 2030, Case Notes (if present) and all CP 2531 (if present).

    3. Access Control D and print the Statutory Notice of Deficiency for all Stat notices.

      Note:

      If unable to locate the Statutory Notice of Deficiency on Control D, see (7) below.

    4. Route the case to the Ogden Campus Appeals Office.

  6. If research indicates the BMF AUR case is open:

    1. Research the BMF AUR system for the CSN.

    2. Locate and pull each open case. If the case is assigned to a unit, contact the unit to obtain the case.

      Note:

      If the case(s) is in BT 890 (Bankruptcy Suspense), contact the BMF AUR Bankruptcy Coordinator regarding the docketed case. These coordinators need to inform other areas (ie: Centralized Insolvency) that the taxpayer has petitioned Tax Court.

    3. Prepare Form 3210 and record the name, TIN and tax year for each case.

      Note:

      If the case is MeF notate, "MeF return" on Form 3210 transmittal.

    4. Print the latest CP 2030 and the Case Contents (Tax Accounts, Information Returns, Case History, all CP 2030 Case Notes, (if present) and all CP 2531 (if present). Associate these items with the case file.

    5. Access Control D and print the Statutory Notice of Deficiency for all Stat notices issued.

      Note:

      If unable to locate the Statutory Notice of Deficiency on Control D, see (7) below.

    6. For PC 4720 research IDRS for any TC 494. If present, reverse with a Transaction Code (TC) 495.

    7. Establish the case on Audit Information Management System (AIMS) for Appeals using IDRS Command Code (CC): AM424A and the Appeals Office Code. Research SERP, under the Who/Where tab, to link to the Appeals Case Routing for current Appeals Office addresses and routing instructions.

      Note:

      See the BMF AUR IDRS Guide for instructions for reversing transaction codes, AIMS actions and closing an IDRS control base.

    8. Attach a print of the AIMS opening action showing request completed.

    9. Input PC 4800 on the case.

      Note:

      Note: If the system prevents you from entering PC 4800, transfer the case to a designated tax examiner for review.

      Note:

      PC 4800 cases that are returned from technical units need to be built, verified and "RB" 'd immediately due to their time sensitive nature.

    10. Recharge the documents (paper returns) and route the case to the Ogden Campus Appeals Office.

    Note:

    Appeals may also request a copy of the Certified Mail Listing in order to verify the date and address used to mail the Statutory Notice. Locate, copy and sanitize the appropriate page of the Certified Mail Listing and include it with the Appeals package.

  7. If unable to locate the Statutory Notice of Deficiency on Control D take the following actions:

    1. Locate case and search the undelivered Statutory Notices of Deficiency for the notice date of the missing copy. If found, photocopy and send. If not found, go to step 2 below.

    2. Access case history, see IRM 4.119.1.2.5, Case History Screen.

    3. Locate the Statutory Notice in the Action column.

    4. Click on the date in the Date column. The Statutory Notice History Screen will display.

    5. Print the Statutory Notice History screen.

    6. Write "SNOD not available" on the Form 3210 transmittal.

4.119.1.2.13  (10-01-2012)
Modernized e File System

  1. Modernized e-File (MeF) is a web based system that allows electronic filing of Corporate, Partnership, Exempt Organizations and Excise Tax Returns through the Internet.

  2. All electronically transmitted returns are identified by a unique Document Locator Number (DLN). The following File Location Codes (FLC) have been designated for the electronic filing of income tax returns. The second number listed is the roll over FLC used when a site exhausts the regular FLC for a given processing date.

    File Location Code Processing Campus
    16, 14 ANSC
    35, 38 CSC
    93, 92, 88, 91 Ogden Campus (OSC)
    52 PSC
    64, 72 ECC-MEM

    Note:

    File Location Codes 66 for U.S. Possessions and 98 for International may also designate electronic filing processed at the Philadelphia Campus.

    Note:

    The system does not allow a user to order a TC 150 document with the above FLC codes.

  3. Employees needing a MeF return can obtain it through the Employee User Portal (EUP).

    Note:

    You must be a registered user. An OL5081 is needed to gain access to this application.

  4. Electronically filed (MeF) (Virtual Cases - V) returns do not have paper copies stored in Campus Document Retention, Files Operation, for associating taxpayer correspondence. Therefore, it is not possible to send copies of attachments/responses to Document Retention, Files Operation, for association with an MeF DLN.

4.119.1.2.14  (10-01-2012)
Examination Closures

  1. If a case has been requested for transfer to Campus Examination, or by an Area Office, (PC 4110, 4130, 4350, 4380, 4560, 4570, 4590, 4780, 4790)

    1. Print the contents of the case.

    2. Attach the printed information to the case prior to routing to the Examination Operation.

    3. Send the case contents to the Examination Operation.

    4. Prepare the return(s).

    5. Send the return(s) to the appropriate FRC by routing to the Files Operation.

    Note:

    If the requested case is assigned to a tax examining unit, a TE MUST input the appropriate process code.

4.119.1.2.15  (10-01-2012)
Folders (Case Information)

  1. The case label information is printed directly on the upper right corner of the folders. The following is included as part of the printed case label:

    • Bar code

    • Taxpayer Identification Number (TIN)

    • Business name

    • Case Sequence Number (CSN)

    • Tax Year

  2. The case information is generated during the weekend batch runs and is electronically routed to the printing equipment for processing. Folders are printed, maintained and received in strict CSN order.

  3. Beginning 2012 and subsequent folders are initially produced for paper (non virtual) cases that receive a CP 2030 BT 500, a CP 2531 BT 400, or a Research Request BT 370 case sequence number (CSN).

  4. Subsequent labeled folders are produced when paper cases are moved to Letter Suspense BT 470, Recomputed CP 2030 BT 600, CP 2030 Letter Suspense BT 670, and Statutory Notice Suspense BT 700.

    Note:

    Cases transferred to Unit Suspense Batches (BT 450, 650, and 750), or Research Suspense Batches (BT 480, 580, or 780) and cases with Process Code (PC) 4750 and Internal Process Code 47LT do not receive new labeled folders.

  5. When folders are received:

    1. Ensure all folders are received.

    2. Separate the folders by suspense file numbers.

    3. Get the folders and the appropriate cases for "foldering" .

      Reminder:

      Beginning 2012 and subsequent Virtual cases do not receive folders.

    4. Verify the information on the folder matches the case. Don't use a previous folder for comparison as it may be incorrect.

    5. If the case for a folder cannot be located or if there is a case with no folder set these aside - keeping in strict CSN order and see (6) and (7) below for handling extra folders and cases.

      Caution:

      It is easy for two cases to stick together, always look for missing case contents in the folders before and after the missing case, before setting aside.

    6. Place the case contents inside the case folder. The entire case contents should be face up. When looking at the folder the printed case information should be at the bottom right corner so that when the folder is opened the contents are right side up.

      Note:

      If there is a previous case folder, discard according to local classified waste procedures or recycle.

    7. Place the completed case folder - keeping in strict CSN order - in the designated area or suspense file.

  6. Compare empty folders to the extra cases, if a match is found interfile the foldered cases. If no match is found, research (BMF AUR case history) the TIN. If the case history shows:

    1. The CSN is the same, recheck the foldered cases before and after the CSN to ensure the missing case wasn't placed in the wrong folder.

      Note:

      If the case is not located, interfile the empty folder with the notice date.

    2. A CSN of 900 - discard (classified waste) or recycle the folder.

    3. A new batch assignment other than BT 681, 682 , discard (classified waste) or recycle the folder.

      Note:

      If foldering BT 700 and the new CSN shows a BT 560 assignment, discard (classified waste) or recycle the folder.

    4. A new batch assignment to BT 681, 682, place the folder with the batch and/or the case.

  7. Compare extra cases to the empty folders, if a match is found interfile the foldered cases. If no match is found, research (BMF AUR case history) the TIN. If the case history shows

    1. A CSN of 900, 990, research IDRS for a refile DLN and send to the Files Operation.

    2. A CSN other than the batch being foldered, attempt to associate the case with the existing folder or make a folder and interfile.

4.119.1.2.16  (10-01-2012)
Locations

  1. A location is a three character code that can be alpha or numeric. It identifies the place where batches and/or cases are located. Local management determines location numbers for all units and suspense files.

  2. There are two locations assigned by the BMF AUR system:

    • Release (RLS) - is assigned when batches and/or cases are released from the tax examining units

    • Location 000 is assigned when extracts (BT 001 - 099) are downloaded into the BMF AUR system and to closed cases in BT 900, 990. The batches remain assigned to this location until the batch status is updated to Assigned Unit (AU)

4.119.1.2.17  (10-01-2012)
Out Going Calls and Correspondex Letters

  1. The TE uses applicable process codes when it is appropriate to send a letter to the taxpayer and take another action on the case at the same time. The TE will assign a process code other than a 43LT, 43PH, 45LT, 45PH, 45EX, 47LT, or 47PH on these cases.

  2. Cases are filed in the appropriate BMF AUR suspense file based on the process code assigned by the TE. The letter displays the CSN of the process code action. For additional information, see IRM 4.119.1.2.9, Correspondex Letters.

    Note:

    Correspondex letters rejected by IDRS are not batched; transfer to the TE who initiated the letter.

    Note:

    See IRM 4.119.1.2.26.4, Undeliverable Correspondex Letters, for handling undeliverables for these letters.

4.119.1.2.18  (10-01-2013)
Photocopy Requests

  1. The Photocopy Unit may forward a Form 4506, Request for a Copy of Tax Return, to BMF AUR (usually the Clerical Function). If such a request is received:

    1. Check BMF AUR to locate the return.

    2. After locating the return, make a photocopy and

    3. Send the copy to the requesting Campus Photocopy Unit.

  2. If the return cannot be located and/or a return has been closed to another area or returned to the Campus Files Operation, Document Retention, advise the requesting Campus Photocopy Unit.

  3. The Customer Service function may forward a Form 4442, Inquiry Referral, to request a copy of BMF AUR Notices click the BMF AUR print option on the system tool bar to make the copy and send it to the taxpayer.

4.119.1.2.19  (10-01-2012)
Process Codes

  1. Clerks are restricted to using specific process codes.

  2. The ONLY process codes that can be input by clerks are 4150, 4160, 4170, 4270, 4710 and 4800.

  3. The ONLY internal process codes (IPC) that can be input by clerks are: Lost Case (4XLC), Lost Response (4XLR), or Refile Case (4XRF).

4.119.1.2.20  (10-01-2012)
Recomputed Notices

  1. Whenever a taxpayer response causes the figures on the original CP 2030 to change, an amended or recomputed CP 2030 with the correct figures is issued.

  2. The BMF AUR system assigns these cases to BT600, based on the PC assignment.

  3. Statutory Notices with a Recomputed CP 2030 keep the Statutory Notice CSN and are returned to Suspense BT 700.

4.119.1.2.21  (10-01-2012)
Request Case

  1. When TEs need a case, they may use the REQUEST CASE option. This requires the clerks to access the request case pull listing report twice a day. When completed:

    1. Pull the case.

    2. Attach the request charge out to the front of the case.

    3. Use the Transfer option to transfer the case to the requesting TE's User Identification SEID, which automatically appears on the screen in the TO SEID NUMBER field. This field cannot be changed.

    4. Deliver the case to the technical unit.

4.119.1.2.22  (10-01-2012)
Returning Cases to BMF AUR Suspense Files

  1. Cases can be returned to BMF AUR Suspense BT 400, 470, 500, 600, 670, and 700 using IPC 4XRF.

    Caution:

    The terms refile, refiling and IPC "4XRF" refer to BMF AUR suspense files. DO NOT SEND THESE CASES to the Campus Files Operation (Document Retention).

  2. Before assigning a TIN to Lost Case, or Lost Response suspense, check the current assignment. If the TIN is currently assigned to other than a BMF AUR suspense batch, enter IPC 4XRF to move the TIN back to the previous BMF AUR suspense batch.

  3. IPC 4XRF systemically moves cases back to the previous BMF AUR suspense batch. This is necessary in order for the case to follow consistency checks for moving the case to next stage of processing.

  4. The following IPCs and PC are refiled back into BT 700 using the original CSN:

    • 47LT

    • 47PH

    • 4750

  5. Return the case to the appropriate BMF AUR suspense batch to wait for system aging. During the system aging, each case is updated with a code indicating the batch number to which the case should be assigned.

    Note:

    If the case can be batched to the next appropriate batch for processing, it is not necessary to physically return the case to the appropriate BMF AUR suspense batch.

  6. If the case cannot be returned to the BMF AUR suspense batch, the system displays a SEID. Use the Transfer option to transfer the case to the SEID displayed or to a locally designated SEID.

  7. Cases in BT 880 or BT 870:

    1. If the case was previously assigned to a batch that required a TE to work the case, the system displays a SEID. Use the Transfer option to transfer the case to the SEID displayed or to a locally designated SEID.

    2. If the case was previously assigned to an BMF AUR suspense batch, the system moves the case back to the BMF AUR suspense batch. Return the case to the appropriate BMF AUR suspense batch or batch to the next appropriate batch for processing.

4.119.1.2.23  (10-01-2013)
Time Frames for Assessments

  1. Assessments on agreed responses should have the adjustment input (agreed batch types updated to batch status "RB" ) within 30 calendar days of the IRS received date.

  2. Assessments on defaulted statutory notices should have the adjustment made (batch updated to "RB" status) within 10 calendar days after the BMF AUR system allows case movement to BT 790.

    Note:

    The adjustment made date is the date the batch is updated to "RB" status.

4.119.1.2.24  (10-01-2012)
Time Frames for Suspense Files

  1. The following time frames are, as a rule, applied to the appropriate suspense files.

    • CP 2030 - 65 days

    • APO/FPO or Foreign Address CP 2030 - 90 days

    • Recomputed or Amended CP 2030 - 65 days

    • APO/FPO or Foreign Address Recomputed CP 2030 - 90 days

    • CP 2531 - 65 days

    • APO/FPO or Foreign Address CP 2531 - 90 days

    • Letters - 60 days

    • Statutory Notices ( CP3219B and Form 4089) - 105 days

    • APO/FPO or Foreign Address CP3219B and Form 4089 (Statutory Notice) - 165 days

  2. The BMF AUR system generates a Suspense Aged Batch Report each week that shows which suspense batches have met the appropriate suspense time frames during the previous week. The system has checked for the required conditions such as foreign address, disaster end dates and new transactions and allows the appropriate suspense time.

4.119.1.2.25  (10-01-2013)
Transfers

  1. Cases from many different batches and under several different circumstances are transferred to the SEID of the TE who worked the case or to a designated TE, lead or coordinator.

    Note:

    Cases in "AU" or "DC" status cannot be transferred.

  2. To transfer cases:

    1. Select Control from the BMF AUR menu tree.

    2. Select Case from the sub menu.

    3. Double click Control Case from the expanded menu.

    4. Enter the TIN of case to be transferred and hit <ENTER> .

      Note:

      TIN Type should be EIN.

    5. Enter SEID of TE.

    6. <ENTER>.

    7. Click the Save Icon to commit the change.

    8. Notate the error message or other reason for the transfer, the SEID number and the location on the case folder or Form 4251.

    9. Send to the appropriate unit or location.

  3. Transferred cases are assigned to the appropriate technical Unit Suspense Batch.

4.119.1.2.26  (10-01-2012)
Undeliverables - General

  1. The Post Office returns (to IRS) all notices and miscellaneous letters that it is not able to deliver.

  2. When the undeliverable notices are targeted to the applicable batches, the system checks for a new address and marks the case with an undeliverable indicator. The indicators are:

    • T - True Undeliverable: Cases where no new address was found

      Note:

      CP 2030 undeliverable cases should have the Statutory Notice issued no later than 90 calendar days from the notice date (or 150 days from the notice date for APO/FPO notices)

    • M - Remail: Cases where a new address was found

    • U - Undeliverable: Cases with a new address, but other conditions prevent the notice from being remailed (e.g., Payer/Agent conditions or new transactions)

  3. Undeliverables for POA CP notices should not be assigned to a batch. If batch building by scanning the bar code, the system identifies the POA notice (indicator) and displays a message. If key entering the TIN, verify the Bar Code Indicator before entering the TIN. Only enter the TIN if the Bar Code Indicator is 1. If the Bar Code Indicator is, 3 or 4, follow instructions for that notice type.

  4. Undeliverable CP notices and Correspondex letters received after case closure on BMF AUR do not need address research. Discard the undeliverable notices/letters in accordance with local classified waste procedures.

  5. The Undeliverable Report maintains the volume of undeliverables by notice type and those with better addresses. For more information about the report, see IRM 4.119.1.9.30, Undeliverable Notice Report.

4.119.1.2.26.1  (10-01-2013)
Undeliverable CP 2531

  1. Build undeliverable CP 2531 notices to BT 410 using the undeliverable as the input document. See IRM 4.119.1.5.21.1, Undeliverable CP 2531 for more information on BT 410.

  2. Undeliverable POA, CP 2531 notices should not be assigned to a batch. If batch building by scanning the bar code, the system identifies the POA notice (indicator) and displays a message. If key entering the TIN, verify the Bar Code Indicator before entering the TIN. Only enter the TIN if the Bar Code Indicator is 1. After verifying the Bar Code if the Indicator is 3 or 4, discard the undeliverable notice(s) in accordance with local classified waste procedures.

4.119.1.2.26.2  (10-01-2012)
Undeliverable CP 2030

  1. Build undeliverable CP 2030 notices with or without a forwarding address to BT 620. The Post Office has already attempted to deliver the notice to the forwarding address. See IRM 4.119.1.5.11.1,.Undeliverable CP 2030/Recomps for more information on the undeliverable portion of BT 620.

  2. Undeliverables for POA CP notices should not be assigned to a batch. If batch building by scanning the bar code, the system identifies the Spousal and/or POA notice (indicator) and displays a message. If key entering the TIN, verify the Bar Code Indicator before entering the TIN. Only enter the TIN if the Bar Code Indicator is 1. After verifying the Bar Code if the Indicator is 3 or 4, discard the undeliverable notice(s) in accordance with local classified waste procedures.

4.119.1.2.26.3  (10-01-2012)
Undeliverable Statutory Notices

  1. The Statutory Notice is a legal document. Therefore, no marks or corrections should be made on the undeliverable notice. Notations made on the returned envelope must not interfere with the Post Mark Date or the Post Office Return Stamp.

  2. Undeliverable Statutory Notices are targeted to Remail Statutory Notice BT 820, using the undeliverable as the input document. See IRM 4.119.1.5.52, Remail Statutory Notice for more information on Remail Statutory Notice BT 820. If the system identifies a new or better address, the case is accepted to BT 820.

  3. Cases with no new or better address are not accepted into Remail Statutory Notice BT 820. Associate the undeliverable Statutory Notice with the case file, if there is one, and leave the case in Statutory Suspense BT 700 until defaulted. If the case is MeF(virtual) and there is no case file, place the undeliverable Statutory Notice in the appropriate BT 700 based on CSN.

  4. Undeliverable POA Notices cannot be assigned to a batch. Associate the notices in the case folder if there is one, and leave the case in Statutory Suspense BT 700 until defaulted. If the case is MeF (virtual) and there is no case folder, place the undeliverable in the appropriate BT 700 based on CSN.

  5. Undeliverable Statutory Notices with a new/better address that cannot be built to Remail Statutory Notice BT 820 are batched to a STN90 Prep BT 770.

  6. ALL undeliverable Statutory Notices MUST be associated with the case file, if there is one. If the case is MeF (virtual) and there is no case file, place the undeliverable Statutory Notice in the appropriate BT 700 based on CSN. The undeliverable Statutory Notice verifies that the Service attempted to contact the taxpayer before making changes to their tax account.

    Note:

    If an undeliverable Statutory Notice is for a case that has already been closed, research IDRS for the controlling DLN and prepare a Form 9856, Attachment Alert, to transmit the undeliverable Statutory Notice to the Campus Files Operation.

4.119.1.2.26.4  (10-01-2012)
Undeliverable Correspondex Letters

  1. If a subsequent letter to either a CP 2531 or CP 2030 (IPC 43LT, 43PH, 45LT, 45PH or 45EX) is returned as undeliverable:

    1. Use the undeliverable to pull the case.

    2. Associate the undeliverable letter.

    3. Transfer the case to the TE who issued the letter.

  2. If a subsequent letter (47LT, or 47PH) for a Statutory Notice or recomputed CP 2030 (PC 4750) to a Statutory Notice is returned undeliverable, transfer the case to the TE who issued the letter. The TE may have information in the case regarding the new address. For additional information, see IRM 4.119.1.2.17, Out Going Calls and Correspondex Letters.

4.119.1.3  (10-01-2012)
Miscellaneous Notice Processing

  1. This section provides information and instructions on case processing for the Response, Statutory Notice and Reconsideration phases of the program.

4.119.1.3.1  (10-01-2013)
CP 2030 Notice Review

  1. Each CP 2030 notice date must be reviewed before the notices are mailed. A valid sample of cases is pulled from BT 500 and built to BT 682. See IRM 4.119.1.5.57, Batch Type (BT) 682 (Review), for additional information and sampling instructions.

    Reminder:

    Beginning TY 2012 if a Virtual case(s) is selected for review there is no case(s) to pull. Use the TIN to build to BT 682.

    Note:

    Cases with Sort Codes and the CP 2030 posted after CP 2531 Notices are not included in the CP 2030 Notice Review sample.

  2. When the cases have been reviewed, the tax examining manager updates the batch status to "BF" .

  3. Cases are systemically returned to the BMF AUR suspense batch when the batch status is updated to "RB" . Physically return the cases to the appropriate BMF AUR suspense file after checking for a folder for any paper cases.

    Reminder:

    Beginning TY 2012 and subsequent virtual case(s) do not have a physical case to be returned to the appropriate case file.

4.119.1.3.2  (10-01-2012)
Notices Not Mailed (CP 2531/CP 2030/Stat Notices)

  1. The Correspondence Production Services (CPS) prints and mails CP 2531, CP 2030, Statutory Notices and the BMF AUR generated C-Letters. The CPS site is located in Ogden (designated as CPS-West, prints and mails BMF AUR notices for Ogden) .

  2. When CPS cannot generate and mail a Statutory Notice, the notice is suppressed and not returned to the BMF AUR Campus. Within two weeks of printing the notice date, CPS transmits a listing of Stat notices not generated to the BMF AUR system. The BMF AUR system generates a Statutory Notice Not Generated Report. See IRM 4.119.1.9.23, Statutory Not Generated Report for more information on this report. Take the following actions to identify these cases:

    1. Print the report.

    2. Enter PC 4710 for each case to indicate the notice was not mailed.

    3. Pull all the paper cases listed.

    4. Build all TINs to BT 590 or BT 848 to generate another Statutory Notice.

    Note:

    When a case is assigned to Stop Notice, the BMF AUR system automatically updates the process code to the appropriate notice-not-mailed PC 4310, 4320, 4510, 4540, 4710, or 4760. If the notice should be mailed, the BMF AUR coordinator has to delete the notice-not-mailed PC.

  3. If the cases that are identified as Stats not mailed are not handled prior to default, the system identifies these cases during the default auto-purge process by displaying the message "Stat not generated-Transfer to Coordinator". Take the following actions:

    1. Enter PC 4710 to indicate the notice was not mailed.

    2. Pull the case.

    3. Build the case into BT 590 or BT 770 to generate another Statutory Notice.

    Note:

    When a case is assigned to Stop Notice, the BMF AUR system automatically updates the process code to the appropriate notice-not-mailed PC 4310, 4320, 4510, 4540, 4710, or 4760. If the notice should be mailed, the BMF AUR coordinator has to delete the notice-not-mailed PC.

  4. If a mutilated CP 2531 or CP 2030 notice is returned to the site and it can be mailed within 5 days after the notice date:

    1. Print the CP 2531 or the CP 2030 notice with the same notice date as the mutilated notice using the Print option on the system tool bar.

    2. Mail the notice(s).

  5. If a mutilated CP 2531 or CP 2030 notice is returned to the site and it cannot be mailed within 5 days after the notice date:

    1. Pull the case and indicate "Mutilated" on the folder.

    2. Transfer the case to the TE who input the notice process code, or to a designated SEID for generation of another notice.

    3. Send the case to the technical unit.

      Note:

      Beginning TY 2012 and subsequent a MeF Virtual case does not have a folder, follow local procedures to send the case to the technical unit.

  6. When a disaster area is declared and the IRS grants tax relief, the BMF AUR Coordinator enters the designated disaster ZIP Codes, the disaster begin date, the disaster end date and the disaster type to the BMF AUR system. Based on the disaster type and the dates, the BMF AUR system suppresses the generation of CP 2531 and CP 2030 notices and rejects the assignment of PC 4700 and 4720 to generate a Statutory Notice. As prompted by the system, follow the instructions for BT 83X at IRM 4.119.1.5.56, Batch Type (BT) 83X (Declared Disasters).

    Note:

    There may be occasions when the BMF AUR Coordinator issues special handling instructions for disaster cases.

  7. It is not necessary to associate notices returned by CPS with the case.

4.119.1.3.3  (10-01-2013)
CP 2030/CP 2030 Recomputation Notice Rejects

  1. The BMF AUR System generates a weekly Reject Listing identifying rejected cases in CSN order. The Reject Listing can be printed by the BMF AUR Coordinator, the clerical managers and the clerks. For additional information about the listing, see IRM 4.119.1.9.21, Reject Listing.

  2. There are seven reject conditions for CP Notices. The codes for these conditions are:

    • 1 - Restricted Interest

    • 2 - Military Action (IMF only)

    • 3 - TC 846/776

    • 4 - Invalid Interest (SCRS)

    • 5 - Not found on TIF

    • 6 - Invalid Interest (BMF AUR)

    • 7 - Declared Disaster Area Manual Interest

    • 8 - Declared Disaster Area

  3. Pull the cases on the Reject Listing and indicate the Reject Code on the Form 4251 or on the case folder.

    Note:

    Beginning TY 2012 and subsequent virtual cases do not have a physical case.

    1. Build Reject Codes 1,, 3, 4, 5, 6 and 7 into BT 860.

    2. Build Reject Code 8 into BT 850.

    3. Deliver batches to the designated areas.

    Note:

    When the cases have been batched, the system posts an "R" (Reject) on the Case History.

4.119.1.3.4  (10-01-2013)
Stop CP 2030/Statutory Notices

  1. Whenever it has been determined that a CP 2531, CP 2030 or Statutory Notice (PC 4700) should not be mailed, the STOP NOTICE option is used to prevent the notice from being mailed. When TINs are added to Stop Notice, the system automatically assigns the appropriate notice-not-mailed PC. If it has been determined that the PC 4720 should not be mailed, the STOP NOTICE Option is used and the notice must be pulled manually by the clerical function. The system posts a C or D on the Case History.

    1. C posts when the CP 2531, CP 2030 or Statutory Notice (PC 4700) was stopped (not mailed) with the Stop Notice function. PC 4720 Statutory Notice with a posted C was generated and must be pulled manually by the Clerical Function.

    2. D posts when the notice was not generated and the process code does not display in case history. The system builds the cases to the appropriate unit suspense. Only TEs can stop notices from being generated.

  2. The TIN (of the notice to be stopped) must be entered by the second Friday before the Notice Mailout Date.

    Note:

    When a case is assigned to Stop Notice, the BMF AUR system automatically updates the process code to the appropriate notice-not-mailed PC 4310, 4510, 4540, 4710, or 4760. If the notice should be mailed, the BMF AUR coordinator has to delete the notice-not-mailed PC.

  3. The Stop Notice Report is generated and can be viewed or printed. For additional information about this report, see IRM 4.119.1.9.25, Stop Notice Report.

4.119.1.3.5  (10-01-2012)
Responses

  1. When responses are received an initial sort is recommended by tax year, response type (CP 2531, CP 2030, Stat, etc.) and received date.

4.119.1.3.5.1  (10-01-2013)
Discovered Remittance

  1. When remittance is discovered fill out Form 3244 Payment Processing Voucher as follows:

    • TIN

    • Form Number/MFT (1120/02)

    • Tax Period

    • Received Date (the IRS received date on the response the remittance was found with)

    • Taxpayers Name, Address, and Zip code

    • Transaction Data (the amount of the remittance, always use line 640)

    • Remarks (your manager's phone number and M/S)

    • Prepared by (your SEID)

  2. Print two copies of the Form 3244. attach one copy of the form to the remittance and the other copy to the response

  3. Notate in red "P" on the top right corner of the response. This indicates a payment was made.

  4. Deliver remittance with completed Form 3244 to Manager or Lead.

  5. When appropriate, fill out Form 4287 Record of Discovered Remittance to log all discovered remittance going to deposit.

4.119.1.3.5.2  (10-01-2013)
Form 433-D or Form 9465 - Installment Agreements

  1. When responses are received with a Form 433-D or Form 9465, Installment Agreement Request, attached, special handling is required.

  2. Take the following steps to process a taxpayers response that includes either a Form 433-D or Form 9465 request for a Installment Agreement:

    If the Form 433-D or Form 9465 is.... And.... Then....
    ...attached to correspondence and is the signature document used to agree to the tax increase there is not any taxpayer comments or other factors that would prevent the response from being built in to a "Agreed Batch"
    1. Make a photocopy to send to Collections.

    2. Using red ink, annotate on the photocopy "pending BMF AUR assessment"

    3. Route the photocopy to Collections

    4. Using pencil, annotate on the original "IA to Collection"

    5. Use the original to build into the applicable agreed batch.

    ....not the signature used to agree to the tax increase.... there is not any taxpayer comments or other factors that would prevent the response from being built in to a "Agreed Batch"
    1. Remove Form 433-D or Form 9465 from the correspondence.

    2. Using red ink, annotate on the original "pending BMF AUR assessment"

    3. Route to Collections.

    4. Using pencil, annotate in the upper right hand corner of the first page of the correspondence " IA to Collection "

    5. Use remainder of response to build into the applicable agreed batch.

    .... the only piece of correspondence OR contains taxpayers comments  
    1. Make a photocopy of the Form 433-D or Form 9465 to route to Collections.

    2. Using red ink, annotate the photocopy "pending BMF AUR assessment"

    3. Route the photocopy to Collections.

    4. Using pencil, annotate " IA to Collection "

    5. Use the original to build into the applicable disagreed batch.

4.119.1.3.5.3  (10-01-2012)
CP 2531 Responses

  1. CP 2531 Responses are built to BT430. If the IRS received date on the response is 20 days or older, or it has been determined that priority handling is needed, build the responses into BT 440.

  2. Associated batches of CP 2531 responses are available to be worked by the TEs.

4.119.1.3.5.4  (10-01-2012)
CP 2030 Responses

  1. After initial sorts are completed, all CP 2030 responses should be further screened for those with Form 433-D or Form 9465 as these require special handling, see IRM 4.119.1.3.5.2, Form 433-D or Form 9465 , Installment Agreements. CP 2030 responses are then sorted for batch building by:

    • agreed

    • disagreed

4.119.1.3.5.4.1  (10-01-2013)
Agreed CP 2030 Responses

  1. An Agreed CP 2030 Response indicates agreement with the CP 2030 in its entirety and must meet at least one of the following conditions:

    1. Be full paid for correct tax and penalties with no taxpayer comments.

      Note:

      Receipt & Control/Deposit function places a rocker under the CP 2030 amount due of the coding/deposit string that appears at the bottom of the CP 2030 Notice which indicates full payment. If a specific dollar amount has been entered, it is an indication of partial payment. For further information, see IRM 4.119.1.2.10, CP 2030 Coding/Deposit String.

    2. Be a signed Form 433-D or Form 9465 attached to a notice with no taxpayer comments. See (2) below. See IRM 4.119.1.3.5.2, Form 433-D or Form 9465 - Installment Agreements for further information.

      Note:

      If the Form 433-D or Form 9465 is the only piece of correspondence, make a copy to route to Collection. Use red ink to annotate the photocopy of the Form 9465 or Form 433-D with: "pending BMF AUR assessment" . Use the original to build into the appropriate disagreed response batch, make sure to annotate that a copy of the IA was sent to Collection.

    3. Contain a signature (on the Consent to Tax increase line) on an unaltered CP 2030 with no taxpayer comments/attachments. See (2) and (3) below for additional information on a faxed consent to tax increase.

      Note:

      If the Disagreement line on the Response Page has been signed, consider the response disagreed. Failure to do so could result in an incorrect assessment which can lead to increased taxpayer burden and additional cost for the IRS.

  2. A faxed consent to assess additional tax (CP 2030, Form 433-D or Form 9465 of $250,000 or less with no taxpayer comments can be accepted. Build these cases into BT 510 .

  3. If a faxed consent to assess additional tax in excess of $250,000 is received, original signatures are required treat this response as disagreed.

  4. Agreed responses are built into BT 510.

    Note:

    Although CP 2030 responses with an IRS received date of 20 days or older could be assigned to a BT 540, it is recommended that all agreed CP 2030 responses be built to BT 510 for automatic assessment.

4.119.1.3.5.4.2  (10-01-2012)
Disagreed CP 2030 Responses

  1. A Disagreed CP 2030 Notice Response does not meet the conditions in IRM 4.119.1.3.5.4.1, Agreed CP 2030 Responses, and is identified by:

    • Disagreement with at least some part of the notice

    • The CP 2030 is unsigned, or there are taxpayer comments

    • An unsigned Form 433-D or Form 9465 with or without taxpayer comments

    • The only correspondence received is a Form 433-D or Form 9465

  2. While sorting/building responses that meet disagree criteria take the following steps:

    1. Remove all Form 433-D or Form 9465.

    2. Mark the response with "IA to Coll" or similar language to let the TE know that the response contained an Installment Agreement.

    3. Send the Form 433-D or Form 9465 to Collection, see IRM 4.119.1.3.5.2, Form 433-D or Form 9465, Installment Agreements.

  3. Disagreed responses are built into BT 530. However, if the received date is 20 DAYS OR OLDER, priority handling is needed. Build the response to BT 540.

4.119.1.3.5.5  (10-01-2013)
Statutory Notice Responses

  1. After initial sorts are completed, all Statutory responses should be further screened for those with Form 433-D or Form 9465 as these require special handling, see IRM 4.119.1.3.5.2, Form 433-D or Form 9465 , Installment Agreements. Statutory responses are then sorted for batch building by:

    • agreed

    • disagreed

    Reminder:

    All Stat responses are considered HIGH PRIORITY work, as the taxpayer has limited time to file a petition with Tax Court.

    Note:

    As the volume of Stat responses is generally low, Priority Stat Response BT 740 may be used for all Stat responses.

4.119.1.3.5.5.1  (10-01-2013)
Agreed Statutory Notice Responses

  1. An Agreed Statutory Response indicates agreement by meeting one of the following conditions:

    1. An unaltered CP 2030 (attached or not attached to a Statutory Notice) that contains a signature ( on the Corporation Agrees to Tax Increase line on the Notice) with no taxpayer comments.

    2. A signed 4550C letter that contains a signature with no taxpayer comments.

    3. A signed Form 433-D or Form 9465 attached to a notice with no taxpayer comments. See IRM 4.119.1.3.5.2, Form 433-D or Form 9465, Installment Agreements.

      Note:

      If the Form 433-D or Form 9465 is the only piece of correspondence, make a copy to send to Collection. Use red ink to annotate the copy of the Form 433-D or Form 9465 with: "Pending BMF AUR Assess" . Use the original to build into the appropriate disagreed response batch, being sure to annotate that a copy of the IA was sent to Collection.

    4. A signature (under the Consent to Tax Increase jurat) on an unaltered Statutory Notice of Deficiency Waiver, Form 4089, with no taxpayer comments/attachments, See (2) and (3) below for additional information on a faxed consent to tax increase.

      Caution:

      Full payment received after a Notice of Deficiency was issued, without the necessary signature(s), cannot be considered an agreement with the tax increase. Build these responses to the appropriate disagreed response batch type.

      Reminder:

      All Stat responses are considered HIGH PRIORITY work, as the taxpayer has limited time to file a petition with Tax Court.

      Note:

      If the Disagreement line on the Response page of the Notice has been signed, consider the response to be disagreed. Failure to do so could result in an incorrect assessment, which could cause an increase in taxpayer burden and additional cost for the IRS.

  2. A faxed consent to assess additional tax (CP 2030, Letter 4550CForm 4089 (Stat Notice), Form 433-D or Form 9465 of $250,000 or less attached to notice with no taxpayer comments can be accepted. Build these cases into BT 710 (BT 510 for CP 2030 phase).

  3. If a faxed consent to assess additional tax in excess of $250,000 is received , treat this response as disagreed. Original signatures are required.

  4. Agreed Stat responses are built into BT 710.

    Note:

    Although Stat responses with an IRS received date of 10 days or older could be assigned to a BT 740, it is recommended that all agreed Stat responses be built to BT 710 for automatic assessment.

4.119.1.3.5.5.2  (10-01-2012)
Disagreed Statutory Notice Responses

  1. All Stat responses are considered HIGH PRIORITY work, as the taxpayer has limited time to file a petition with Tax Court.

  2. A disagreed Stat response does not meet the conditions in IRM 4.119.1.3.5.5.1, Agreed Statutory Notice Responses, and is identified by:

    1. Disagreement with at least some part of the notice.

    2. The waiver is unsigned, or there are any taxpayer comments.

    3. The only correspondence is a Form 433-D or Form 9465.

  3. Disagreed Stat responses can be assigned to BT 730 when building a sufficient volume with the same IRS received date. Otherwise, consider using BT 740, regardless of date.

    Note:

    The determination regarding which BT to use is made by local management.

  4. A Statutory Notice Response with a received date of 10 DAYS OR OLDER is systemically identified and should be built to BT 740.

  5. When Statutory responses contain a Form 433-D or Form 9465:

    1. Remove all Form 433-D or Form 9465.

    2. Mark the response with "IA to Coll" or similar language to let the TE know that the response contained an Installment Agreement.

    3. Send the Form 433-D or Form 9465 to Collection. See IRM 4.119.1.3.5.2, Form 433-D or Form 9465, Installment Agreements, for additional information.

4.119.1.3.5.5.3  (10-01-2013)
Statutory Notices Not Generated - Late Responses

  1. If a response is received but the Statutory Notice has not been mailed, and the date is earlier than the second Friday before the Notice Mailout Date, batch the case to BT 560.

  2. If the response is received later than the second Friday before the Notice Mailout Date, batch the case to a Statutory Response BT 710, 730, or 740 after the notice date has passed.

    Note:

    When a case is assigned to Stop Notice, the BMF AUR system automatically updates the process code to the appropriate notice-not-mailed PC 4710.

4.119.1.3.6  (10-01-2013)
Statutory Notices (Process Code 4700)

  1. The BMF AUR system creates a statutory notice record for cases assigned a PC 4700.

  2. PC 4700 Statutory Notices are generated in CSN order and paper cases receive a new folder. A Statutory Notice consists of a CP 2030 reprint notice, two mail copies of the Banner Page, the Statutory Notice of Deficiency (CP3219B), Notice of Deficiency - Waiver (Form 4089). The BMF AUR bar code is displayed on the Form 4089.

  3. The Statutory Notice is a legal document. Therefore, no marks or corrections should be made on the notice.

  4. The original Certified Mail Listing is handled at CPS as follows:

    1. CPS associates the listing with the certified notices for mailing.

    2. The U.S. Post Office stamps the date the listing was received.

  5. CPS routes one copy of the date stamped domestic certified listing and one copy of the registered foreign listing with any domestic registered corrections to each BMF AUR campus. Electronic copies of the STAT notices are sent to Control-D.

4.119.1.3.7  (10-01-2012)
Statutory Notices (Process Code 4720)

  1. Statutory Notices created by Command Code (CC) STN90 using IDRS are received separately from notices created by PC 4700.

  2. Statutory Notices generated from CC STN90 are generated in TIN order. There IS NOT an BMF AUR bar code on the Form 4089.

  3. Information from the most current CP 2030 Notice is used when generating Statutory Notices using STN90. The TE prints a copy of the notice and associates it with the case when a PC 4720 is input. Print a copy of the notice if not in the case file.

  4. Command Code STN90 must be preceded by valid input of CC TXMOD. In order to generate a Statutory Notice, the module must contain an open control base with Category Code URPS. If it is a dummy module, an error message displays and the notice is not created.

  5. Category Code URPS should be used on initial input of STN90, STN90F, and STN90C. Use "STAT NOTICE" as the explanation.

  6. If TC 494 attempts to post to a module with a TC 420, 424, or a TC 494 with a category other than URPS, an error displays on the terminal screen. Contact the appropriate organization to determine what action must be taken to resolve the situation.

    Note:

    For contact information, see the Exam Employee Group Code (EGC) contacts, under the Who/Where Tab on SERP.

  7. The following penalty types are accepted:

    • 1 - Reserved

    • 2 - Late Filing Penalty

    • 3 - Reserved

    • 4 - Reserved

    • 5 - Estimated Tax Penalty

    • 6 - Gross Valuation Overstatement Penalty (Do Not Use)

    • 7 - Accuracy Related Penalties

    • 8 - Gross Valuation Misstatement (Do Not Use)

  8. The Paragraph option is not used for BUR processing.

  9. Machine Services imprints the Director's signature on the CP3219B and forwards the signed CP3219B and Form 4089 to the BMF Automated Underreporter function.

  10. Assemble the taxpayer copies of the Statutory Notice as follows:

    1. The original and one copy of CP3219B.

    2. The original and one copy of Form 4089.

    3. A copy of the most current CP 2030/Recomputation Notice (except page 1 and the response page).

  11. Assemble the file copy of the Statutory Notice as follows:

    1. One copy of CP3219B .

    2. One copy of Form 4089.

    3. A complete copy of the most current CP 2030/Recomputation Notice.

  12. Check the Statutory Notice before mailing for the following:

    1. Name, address and TIN are the same on CP3219B, Form 4089, and the most current CP 2030/Recomputation Notice.

    2. The Tax Increase on the CP3219B , Form 4089, and page 2 of the CP 2030/ Recomputation Notice are the same amount.

    3. Foreign addresses.

  13. If a Statutory Notice is manually typed:

    1. Prepare a manual Certified Mail Listing.

    2. Use the next available Certified Mail Number, not exceeding the block of numbers allocated to the BMF AUR Function.

  14. Envelope E-142 is used for all notices generated using PC 4720.

4.119.1.4  (10-01-2012)
General Batch Information

  1. BMF AUR uses a series of batches to control and monitor inventory. Cases move from batch to batch as significant actions take place.

  2. There are four menu options listed under the batch menu. The menu options are valid when certain actions are being taken.

    1. Batch Building used to create a batch

    2. Batch Status Location used to determine the status of the batch and where the batch is located.

    3. Verify PC Sequence used to verify the process codes and sequence during disassembly.

    4. Batch History used to see status, location, volume and dates of batches that have been built

  3. Batches are built in the order the TINs are scanned or key entered. Each TIN is assigned a CSN. Batches are built using the Batch Building menu.

    Note:

    Returns (cases) must be kept in the order in which they are scanned or key entered.


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