4.119.1  BMF Underreporter (BMF AUR) Control

Manual Transmittal

September 09, 2014

Purpose

(1) This transmits revised IRM 4.119.1 BMF Liability Determination, BMF Underreporter (BMF AUR) Control.

Background

This IRM 4.119.1 contains information for clerks on their responsibilities relating to the BMF AUR manual clerical process for Form 1120 and Form 1041. The content in this IRM has been revised to reflect manual case processing for Tax Year 2013. The prior IRM provided procedures for automated/systemic processing.

Material Changes

(1) The content in this IRM has been revised to reflect manual case processing. The prior IRM procedures provided procedures for automated/systemic processing.

Effect on Other Documents

This material supersedes IRM 4.119.1 dated 10/01/2013.

Audience

BMF AUR clerical employees.

Effective Date

(09-09-2014)

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

4.119.1.1  (09-09-2014)
Overview

  1. The Business Master File Automated Underreporter (BMF AUR) program is separated into four phases for Form 1120 and Form 1041:

    • 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. The clerical functions to support these processes are:

    • Ordering returns

    • Opening case controls

    • Building batches

    • Associating Folders returns and/or transcripts (DCI) to case files

    • Refiling closed cases

    • Disassembling Batch Trucks

    • Pulling notices identified as erroneous from the notice mailout

    • Preparing notices for mailout

    • Reconciling notices for mailout

    • Preparing cases for transfer or referral to other areas

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

  4. 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

  5. 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.

  6. The response may result in:

    • Closure and refile

    • Assessment

    • Miscellaneous Referral

    • Tax Compliance Officer Referral (TCO)

    • Research (Unit Suspense)

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

    • Additional correspondence to resolve the issue

  7. 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 Batch Trucks

    • 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

  8. The Statutory Notice phase of the BMF AUR Program is the resolution of the BMF AUR issue addressed in the Statutory Notice of Deficiency (CP 3219B) 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.

  9. 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 4.119.1.3.27.3, Undeliverable Statutory Notices, for additional information

  10. The clerical functions to support these processes are:

    • Building batches

    • Associating responses to the STAT, recomputed notices, and letters with the case files

    • Verifying Process Codes

    • Disassembling Batch Trucks

    • 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 to default the Statutory Notice, including all exception handling

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

  12. The clerical functions to support these processes are:

    • Research response for closed status

    • Pull requested cases when needed

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

    • Disassembling Batch Trucks

    • Verifying Process Codes

  13. See Exhibit 4.119.1-6, Titles of Forms, for a complete list of Forms and their titles used in this IRM.

4.119.1.1.1  (09-09-2014)
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  (09-09-2014)
Integrated Automation Technologies (IAT)

  1. BMF AUR employees are mandated to use the Integrated Automation Technologies (IAT) tools. When an action must be taken on IDRS and an IAT tool is available, BMF AUR employees will use the IAT tools to complete the action using the IAT tool. The IAT tools assist the user with IDRS research and input.

  2. If an IAT tool is not functioning properly, the case should be worked using IDRS.

  3. For more information on each tool, see Job Aids at Integrated Automation Technologies.

4.119.1.3  (09-09-2014)
General Case Processing

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

4.119.1.3.1  (09-09-2014)
Action 61/Policy Statement P-21-3 Guidelines

  1. Policy Statement P-21-3 (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 IDRS and the IAT tool to initiate Letter 4314C.

      Note:

      Use the CCA report 4243 to determine cases that require an interim letter.

    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. Responses received with an IRS receive date of 30 days old or older, must have an interim letter sent before being batched.

  3. BMF AUR Coordinator will generate a list of cases requiring an interim letter, (Letter 4314C) when the IRS received date exceeds 23 days.

  4. A Letter 4314C is sent on cases in Batch Types (BT):

    • 430, 431

    • 440, 441

    • 510, 511

    • 530, 531

    • 540, 541

    • 710, 711

    • 730, 731

    • 740, 741

    The Batch must be assigned to the clerical generic Integrated Data Retrieval system (IDRS) number 0481100000 for the clerical function to initiate the interim letter.

4.119.1.3.2  (09-09-2014)
Address Changes

  1. A response may require a new address change to be entered on IDRS using CC ENREQ.

  2. Use normal batch building procedures when processing responses requiring an address change.

    Note:

    Tax Examiners will update the address.

4.119.1.3.3  (09-09-2014)
Assessments

  1. An assessment record will be generated on all closed cases with the exception of screening closures and PC 4890. It is optional to have an assessment record created on referral and other closure process codes.

  2. ALL assessments must be input via IDRS.

    Note:

    TE's will attach a IDRS adjustment print to all cases with an assessment other than zero to the folder.

    Caution:

    If the tax and penalty amounts on the IDRS adjustment print do not match the DCI, give the case back to the TE who assigned the PC.

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

  4. 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 BMF URP Refile DLN for paper returns) CP 2531 or CP 2030)

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

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

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

    • 1,000 for Blocking Series 640-649 (1040 series, 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
  5. All assessments received from the tax examiners will be in adjustment sequence series order. Cases MUST be maintained in this order during the shipping to Files.

  6. Ship assessments to the Files Operation for Form 5147 association. Files uses the employee IDRS number to assist with the association of the Form 5147 to the case contents received from BMF AUR. 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

    • The last five digits represent the BMF AUR Employee IDRS Number

    The Campus should work with the Files Operation to determine how to prepare and ship the assessments.

4.119.1.3.4  (09-09-2014)
Case Sequence Number (CSN)

  1. A CSN is the tracking number of a case. Each case is assigned a CSN which is used to locate the case throughout the BMF AUR process.

4.119.1.3.5  (09-09-2014)
Charge-outs (Form 4251)

  1. Charge-outs (Form 4251) are generated from the Federal Records Center (FRC) when ordering the original return via IDRS using CC ESTABD definer O.

  2. Files will take the following actions to fulfill the return request:

    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.

    Reminder:

    Do not batch a Form 4251 without a return attached.

  3. There are certain File Location Codes that indicate the tax return was filed electronically. See IRM 4.119.1.3.11 (2), Modernized e File System, for a complete list of these Codes.

4.119.1.3.6  (09-09-2014)
Complete Cases

  1. A complete case includes the following:

    • A tax return if paper filed

    • IRPTR Information return (IR) data

    • Tax account information (TXMOD)

    • Address information (ENMOD)

    • POA information (CFINK)

    • Data Collection Instrument sheet

    • Folder

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

4.119.1.3.7  (09-09-2014)
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. Cases that have had a letter issued will have an Internal Process Code (IPC) 43LT, 45LT, 47LT and 49LT on the folder.

    Note:

    These letters can be used as a response to our notice. If a letter is received as a fax/response, research IDRS CC TXMODA to locate case. Pull folder and associate with the case and batch into the appropriate batch type.

  3. If no response is received during CP 2030 phase and the correspondex letter time has expired, the tax examiner will issue a STAT notice.

  4. Cases with letters issued during the STAT phase are monitored by the clerical function after the batch truck has been disassembled.

  5. Place cases in the appropriate suspense batch after the batch truck is disassembled.

    • CP 2531 Letter Suspense held in technical unit suspense

    • CP 2030 Letter Suspense held in technical unit suspense

    • Statutory Notice Suspense held in clerical suspense

    • Reconsideration Suspense held in the technical unit suspense

  6. Statutory Notice Letter (IPC 47PH and 47LT) cases are filed under the original Statutory Notice case sequence number.

  7. Reconsideration Letter internal process code 49LT 49PH cases will be held and monitored in the teams unit suspense.

  8. Cases with IPCs 43PH or 45PH have taxpayer correspondence in the folder.

4.119.1.3.8  (09-09-2014)
Letter Attachments

  1. Collect letter attachments from designated clerical area.

  2. Create a document transmittal Form 12547 and complete sections 1 and 3.

  3. Associate all letters with Form 12547 and route to CRX.

4.119.1.3.9  (09-09-2014)
Disaster Area Cases

  1. The BMF AUR Coordinator alerts the clerical function of zip codes for specific declared disaster based on IRS Disaster Relief Memorandum. Follow coordinators instructions on proper handling of declared disaster area cases.

  2. Cases with Freeze Code -S prevents the case from being defaulted and cases with Freeze Code -O prevents any notices from being issued or defaulted.

  3. 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. Cases identified as meeting disaster criteria are placed in a designated area in the BMF AUR clerical files according to the disaster expiration date and phase.

    Note:

    Cases identified as being in a Disaster Zip will NOT age until after the disaster zip end date has expired.

    Reminder:

    If a response is received before the disaster expiration date has expired, continue normal batching procedures.

  5. Cases meeting the disaster criteria are updated using IDRS CC TXMOD and ACTON to 4XMRDSMMDD.

    Note:

    MMDD is the disaster expiration date for the freeze codes above.

4.119.1.3.10  (09-09-2014)
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. These cases 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:

    Research IDRS, 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. Research IDRS if 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 all notices, and the Case Contents Tax Account (TXMOD), IRPTR Information Returns, DCI, Form 12864Case History Sheet and Form 12953Communication Sheet (if present).

    3. Print the Statutory Notice of Deficiency for all Stat notices.

      Caution:

      Always check what phase the case is in as taxpayers can petition the tax court before a Stat is issued.

    4. 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.

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

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

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

    1. Research for the CSN.

    2. Locate and pull each open case. If the case is assigned to a unit or tax examiner, contact the unit or tax examiner to obtain the case. If not assigned give case to the Appeals subject matter expert.

      Note:

      All open cases must be seen by a TE to determine if a non statutory issue exists.

    3. If non statutory conditions exist, the TE will print all CP notices, STAT notice, Case Contents Tax Account (TXMOD), IRPTR Information Returns, DCI, Form 12864Case History Sheet and Form 12953Communication Sheet (if present) and return case to clerical. Follow all steps below except 6&7.

    4. If non statutory condition does NOT exist, the TE will return the case to clerical. When case is returned, follow all steps below.

    5. 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.

    6. Print all CP notices, Case Contents Tax Account (TXMOD), IRPTR Information Returns, DCI, Form 12864Case History Sheet and Form 12953 Communication Sheet (if present) associate these items with the case file.

    7. Print the Statutory Notice of Deficiency for all Stat notices issued.

      Note:

      If unable to locate the Statutory Notice of Deficiency see (7) below.

      Caution:

      Always check what phase the case is in as taxpayers can petition the tax court before a Stat is issued.

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

    9. 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.

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

    11. Write PC 4800 on the case, update the activity and close the control base using IDRS CC TXMODA and ACTON.

    12. Using IDRS,CC ESTABD definer T 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. This listing is maintained in the clerical function if needed.

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

    1. Search the case file for the Statutory Notice of Deficiency for the notice date of the missing copy. If found, photocopy and send.

    2. If not able to locate write "SNOD not available" on the Form 3210 transmittal.

4.119.1.3.11  (09-09-2014)
Modernized e File System

  1. Modernized e-File (MeF) is a web based system that allows electronic filing of 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
    93, 92, 88, 91, 60, 78 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.

  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) 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.

4.119.1.3.12  (09-09-2014)
Examination Closures

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

4.119.1.3.13  (09-09-2014)
Folders (Case Information)

  1. The case label information is printed on the top of the folders. The following is included as part of the printed case label:

    • Taxpayer Identification Number (TIN)

    • Case Sequence Number (CSN)

    • Tax Year

    • Tax Form

  2. The case information is stored in a data base generated by headquarters and given to the clerical function.

  3. Folders are initially produced for all cases prior to batching.

  4. To produce labels for the printing of folder, follow campus directions.

  5. When folders are received:

    1. Ensure all folders are received.

    2. Associate transcripts and returns if applicable by verifying the information on the folder matches the case.

      Note:

      Case contents should be face up.

    3. If the folder for a case cannot be located or is not legible, manually create a case folder with the necessary information above.

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

  6. Compare extra returns to the empty folders, if a match is found interfile the foldered cases. If no match is found, take to lead.

4.119.1.3.14  (09-09-2014)
Integrated Data Retrieval System (IDRS)

  1. The Integrated Retrieval System (IDRS) is a computer system that contains the most accurate and current information for each taxpayers account.

  2. The most common command codes used in the clerical function are:

    • CC:ACTON: Used to open, update and close controls on IDRS

    • CC:BMFOL: Displays tax information for a specific TIN

    • CC:ENMOD: Displays name, address, and other entity information

    • CC:ESTAB: Used to request a document from files

    • CC:MFREQ: Used to transfer a tax module from national IDRS to local IDRS

    • CC:TXMOD: Displays tax information for a specific TIN

  3. For additional information on IDRS command codes see http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm.

4.119.1.3.15  (09-09-2014)
Locations

  1. A location is a three character code that is numeric. Local management determines location numbers for all units and suspense files.

4.119.1.3.16  (09-09-2014)
Mail Sort

  1. The sorting and processing of incoming mail.

  2. Collect mail from dock and AUR.

  3. Date stamp all correspondence.

  4. Separate correspondence by:

    1. Tax Year.

    2. Form Type.

    3. Notice Type (CP 2531, CP 2030, STAT).

    4. Agreed/disagreed criteria.

    5. Aged/non aged.

  5. Place sorted mail into appropriate bins to be built into specific batch types.

  6. Route any mail that does not belong to BMF AUR to the appropriate location using the Mail Routing Guide.

4.119.1.3.17  (09-09-2014)
Incoming Faxes

  1. On a daily basis retrieve faxes from the fax machine.

    Reminder:

    Check fax machine paper tray.

  2. Date stamp all correspondence.

  3. Separate faxes by:

    1. Tax Year.

    2. Form Type.

    3. Notice Type (CP 2531, CP 2030, STAT).

    4. Agreed/disagreed criteria.

    5. Aged/non aged.

      Note:

      If Form 2848 or Form 8821 is faxed in or with correspondence, it is the clerk’s responsibility to fax Form 2848 or Form 8821 to the POA team.

      Reminder:

      Use the $250,000 dollar tolerance on faxes to determine agreed or disagreed.

4.119.1.3.18  (09-09-2014)
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 suspense file based on the process code assigned by the TE. For additional information, see IRM 4.119.1.3.7, Correspondex Letters.

    Note:

    See IRM 4.119.1.3.27.4, Undeliverable Correspondex Letters, for handling undeliverables for these letters.

4.119.1.3.19  (09-09-2014)
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 IDRS CC TXMODA and BMF AUR case data base to locate the return.

    2. After locating the return, make a photocopy and

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

    4. Refile case back in the BMF AUR files in CSN order.

  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 batch as a response.

4.119.1.3.20  (09-09-2014)
Process Codes

  1. Clerks are restricted to using specific process codes.

  2. The ONLY process codes that can be put on the case folders by clerks are 4800, and when directed 4150, 4160, 4170, 4270, 4290, and 4710.

  3. The ONLY internal process codes (IPC) that can be put on the case folders by clerks are: Lost Case (4XLC), or Refile Case (4XRF).

    Note:

    See IRM 4.119.1.9Internal Process Codes Definition.

4.119.1.3.21  (09-09-2014)
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 clerical function will file these cases, based on the notice date.

  3. Statutory Notices with a Recomputed CP 2030 are returned to the original STAT notice mail out date section in the BMF AUR files.

4.119.1.3.22  (09-09-2014)
Request Case

  1. When a TE needs a case, they will either complete Form 12953Communication Control Sheet or a Case Request Charge Out. This requires the clerks to collect all requests from the designated areas in each team twice a day. When completed:

    1. Pull the case.

    2. Attach Form 12953 Communication Control Sheet or the case request charge out to the front of the case.

    3. Deliver the case to the technical unit.

      Note:

      If Form 12953 or Case Request Charge Out is not complete, give back to TE who requested the case.

      Reminder:

      If on top of the communication control sheet it states to "associate" or "add to case file," do NOT give case to the technical unit leave sheet in case file and refile case.

4.119.1.3.23  (09-09-2014)
Returning Cases to BMF AUR Suspense Files

  1. Cases can be returned to BMF AUR Suspense files using IPC 4XRF. Cases need to be refiled within 24 hours.

    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. The following IPCs and PC are refiled back to the original STAT notice mail out date:

    • 47LT

    • 47PH

    • 4750

  3. Return the case to the appropriate BMF AUR suspense batch location in the BMF AUR files to wait for aging.

    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 in the files.

  4. If the case cannot be returned to the BMF AUR suspense batch files, give the case back to the SEID that last worked the case or to a locally designated SEID.

  5. Cases with IPC 4XLC:

    1. If the case was previously assigned to a batch that required a TE to work the case, give the case back to the SEID that last worked the case or to a locally designated SEID.

    2. If the case was previously assigned to a BMF AUR suspense batch, return the case to the appropriate BMF AUR suspense batch or batch to the next appropriate batch for processing.

4.119.1.3.24  (09-09-2014)
Time Frames for Agreed Assessments

  1. Assessments on all agreed responses (BT 510, 710) should have the adjustment input within 30 calendar days of the IRS received date.

4.119.1.3.25  (09-09-2014)
Time Frames for Suspense Files

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

    • CP 2030 - 60 days

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

    • Recomputed or Amended CP 2030 - 60 days

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

    • CP 2531 - 60 days

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

    • Letters - 60 days

    • Statutory Notices (CP 3219B and Form 4089) - 105 days

    • APO/FPO or Foreign Address CP 3219B and Form 4089 (Statutory Notice) - 165 days

4.119.1.3.26  (09-09-2014)
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.

  2. When transferring cases back to a SEID, update the controlling activity using IDRS CC TXMODA and ACTON.

  3. For more information on case activities, See Exhibit 4.119.1-4Case Activity Codes.

  4. Give case to the appropriate unit or location.

4.119.1.3.27  (09-09-2014)
Undeliverables - General

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

  2. Undeliverables for POA CP notices should not be assigned to a batch, file the undeliverable with the case.

  3. Undeliverable CP notices, STAT's and Correspondex letters received after case closure do not need address research.

4.119.1.3.27.1  (09-09-2014)
Undeliverable CP 2531

  1. Research IDRS CC ENMOD XX-XXXXXXX (current entity displays) for an updated address. If a new address is found, batch case into BT410, 411 for a new notice to be sent .

  2. Cases with no new or better address, associate the undeliverable with the case update the DCI to UNDEL next to the notice date, and refile back into the appropriate suspense batch in the files.

4.119.1.3.27.2  (09-09-2014)
Undeliverable CP 2030

  1. Research IDRS CC ENMOD XX-XXXXXXX (current entity displays) for an updated address. If a new address is found, batch case into BT 620,621 for a new notice to be sent.

  2. Cases with no new or better address, associate the undeliverable with the case update the DCI to UNDEL next to the notice date, and refile back into the appropriate suspense batch in the files. Wait appropriate time frame to continue processing to STAT phase.

4.119.1.3.27.3  (09-09-2014)
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. Research IDRS CC ENMOD XX-XXXXXXX (current entity displays) for an updated address. If a new address is found, batch case into BT 820,821 for a new notice to be sent.

  3. Cases with no new or better address, associate the undeliverable with the case update the DCI to UNDEL next to the notice date, and refile back into the appropriate suspense batch in the files. Wait appropriate time frame, continue processing to default the STAT.

  4. See IRM 4.119.1.6.29, Undeliverable Statutory Notice for more information on Remail Statutory Notice

  5. ALL undeliverable Statutory Notices MUST be associated with the case file. 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.

4.119.1.3.27.4  (09-09-2014)
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, research IDRS CC TXMOD and take the case to the TE who issued the letter.

    Note:

    If another action has taken place before the undeliverable is received in BMF AUR associate the undeliverable with the case file.

  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:

    1. Use undeliverable to pull the case.

    2. Associate undeliverable with case.

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

  3. The TE may have information in the case regarding the new address. For additional information, see IRM 4.119.1.3.18, Out Going Calls and Correspondex Letters.

4.119.1.4  (09-09-2014)
Miscellaneous Notice Processing

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

4.119.1.4.1  (09-09-2014)
CP 2531 Notice Review

  1. Each CP 2531 notice date must be reviewed before the notices are mailed. A valid sample of cases is pulled from prepared notices for the current mail out date and built to BT 681. See IRM 4.119.1.6.19, Batch Type (BT) 681/682 (Review), for additional information and sampling instructions.

  2. When the cases have been reviewed, the tax examining manager gives the batch back to clerical to continue processing.

  3. Physically return the cases to the appropriate BMF AUR suspense file.

4.119.1.4.2  (09-09-2014)
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 prepared notices for the current mail out date and built to BT 682. See IRM 4.119.1.6.19, Batch Type (BT) 681/682 (Review), for additional information and sampling instructions.

    Note:

    Cases that have had prior notices issued, are not included in the CP 2030 Notice Review sample.

  2. When the cases have been reviewed, the tax examining manager gives the batch back to clerical to continue processing.

  3. Physically return the cases to the appropriate BMF AUR suspense file.

4.119.1.4.3  (09-09-2014)
Notice Preparation for CP 2531/CP 2030 Mail Out

  1. Clerical prepares notices for mail out by verifying notice accuracy, ensuring complete stuffing of envelopes and updating case inventory.

  2. Verify notice accuracy by taking the following steps:

    1. Verify TIN on notice and information return(s) against the folder.

    2. Verify notice date, tax year and form type on notice.

    3. Verify two copies of the notice is being sent.

    Caution:

    If any of the verified information above is incorrect or missing take case back to the TE who prepared the notice.

  3. Stuff envelope by taking the following steps:

    1. Insert notice and information return(s) into Envelope E-44B.

      Caution:

      Ensure that the name and address is showing in the window.

    2. Insert stuffer 3498-A, The Examination Process, Notice 1155 Disaster Relief when applicable and Envelope E-205.

    Reminder:

    If there is a POA notice in the case, follow the above instructions and insert in separate envelope.

  4. Update case inventory.

  5. Place case and notice in designated area for reconcile process.

4.119.1.4.4  (09-09-2014)
Notice Preparation for Statutory Notice Mail Out

  1. Clerical prepares STAT notices by verifying notice accuracy, ensuring complete stuffing of envelopes and updating case inventory.

  2. Verify notice accuracy by taking the following steps:

    1. Verify TIN on notice and information return(s) against the folder.

    2. Verify notice date, tax year and form type on notice.

    3. Verify two copies of the notice is being sent.

    4. Verify certified mail number on the notice matches the certified mail number on the label.

    Caution:

    If any of the verified information above is incorrect or missing take case back to the TE who prepared the notice.

  3. Stuff envelope by taking the following steps:

    1. Insert notice and information return(s) into Envelope E-44B.

      Caution:

      Ensure that the name and address is showing in the window.

    2. Insert stuffer 3498-A, The Examination Process, Notice 1214 Helpful Contacts for Your "Notice of Deficiency" , Notice 1155 Disaster Relief when applicable and Envelope E-205.

    Reminder:

    If there is a POA notice in the case, follow the above instructions and insert in separate envelope.

  4. Update case inventory.

  5. Place case and notice in designated area for reconcile process.

4.119.1.4.5  (09-09-2014)
Reconciling Notice for Mail Out

  1. The clerical function will compare the printed notices being sent, to the CP and information return files located in the printed notice folder to ensure they match.

  2. To reconcile notices for mail out follow campus directions.

4.119.1.4.6  (09-09-2014)
Certified Mail Listing (CML) Registered Mail Listing (RML)

  1. Clerical will prepare a certified/registered mail listing for all STAT's for each notice date.

  2. Separate STATs into work units of 15.

  3. Access the Master CML/RML spreadsheet in the clerical folder located in the BUR Campus folder.

  4. Complete the following fields of the CML/RML for each case in the work unit:

    Run Date: Enter the notice mail out date.
    #: Enter a running number starting with 1 (i.e. your first page will be 1–15, your second page will start with 16 etc).
    Article: Enter the 20 digit CML number located on the green tag attached to the envelope in the following format #### #### #### #### ####. For the RML, enter the 13 digit alpha numeric code located on the red tag attached to the envelope in the following format RE ### ### ### US.
    Names: Enter the TPs name exactly as it is shown on the notice.
    Address: Enter the TP's address exactly as it is on the notice.
  5. Print the CML/RML and associate each page with the work unit to which it corresponds.

  6. Review the CML/RML for accuracy for all fields entered above. If errors are found, fix and reprint the CML/RML.

  7. Keep CML/RML with the notices to be mailed.

  8. After the notices are mailed, the post office will return a USPS stamped copy of the CML/RML. Place the stamped CML/RML in the designated log book located in the clerical function.

  9. STAT notices that are being sent to a Foreign address are sent registered mail. A registered mail list will be created in place of the certified mail listing. Follow the above steps to create the RML.

4.119.1.4.7  (09-09-2014)
Notices Not Mailed (CP 2531/CP 2030/Stat Notices)

  1. If a response is received on a notice that has been prepared for mail out:

    1. Pull case and notice.

    2. Destroy paper and electronic copy of notice maintained in the campus folder.

    3. Update transcript and folder with the appropriate process codes (PC 4310, PC 4510, PC 4710, PC 4760).

    4. Build response into appropriate response batch type.

  2. 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.

    2. Mail the notice(s).

  3. 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. Give the case to the technical unit.

  4. When a disaster area is declared and the IRS grants tax relief, the BMF AUR Coordinator issues a designated disaster ZIP Codes list. Based on the disaster type and the dates, the BMF AUR clerical function will compare all CP and STAT notices to the designated disaster ZIP Codes list to determine if the suppression of the notices and STAT is necessary. If the notice zip code is on the disaster ZIP Codes list, follow the instructions for BT 83X at IRM 4.119.1.6.30, Batch Type (BT) 83X (Declared Disasters).

    Note:

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

4.119.1.4.8  (09-09-2014)
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:

    1. Pull case and notice.

    2. Destroy paper and electronic copy of notice maintained in the campus folder.

    3. Update transcript and folder with the appropriate process codes (PC 4310, PC 4510, PC 4710, PC 4760).

  2. Follow clerical procedures to continue processing case.

4.119.1.4.9  (09-09-2014)
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. For additional information see IRM 4.119.1.3.16Mail Sort.

4.119.1.4.9.1  (09-09-2014)
Discovered Remittance

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

    • TIN

    • Form Number/MFT (1120/02) (1041/05)

    • 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 4287Record of Discovered Remittance to log all discovered remittance going to deposit.


More Internal Revenue Manual