5.18.1  Automated Substitute for Return (ASFR) Program

Manual Transmittal

December 09, 2014

Purpose

(1) This transmits a revision of the IRM 5.18.1, Liability Determination, Automated Substitute for Return (ASFR) Program.

Material Changes

(1) All SERP IRM 5.18.1 updates have been included in this revised version.

(2) Elimination of old sections and additions of new sections has resulted in tri-doc renumbering.

(3) The following is a list of Subsection changes:

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.3.6 IRM 5.18.1.10.2.3.13(2) IRM 5.18.1.10.2.3.13.4(1) a IRM 5.18.1.10.2.3.13.7 IRM 5.18.1.10.2.3.51(2)(3) Removed all references to use of quick notes.

  • IPU 14U1325 issued 09-05-2014 IRM 5.18.1.10.2.3.14.1 - Remove reference to quick notes.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.4 and IRM 5.18.1.10.2.3.14 and IRM 5.18.1.10.2.3.48 and IRM 5.18.1.10.2.3.51 - IAT XCLAIM is mandated for processing of ASFR and ASFR Reconsideration returns have been updated to reflect this change.

  • 5.18.1.3.1 - ASFR Criteria - Verbiage clarification.

  • IPU 14U0447 issued 03-06-2014 IRM 5.18.1.5 - CP36C and CP36Zs - Updated to clarify section on MeFile and TRDBV procedures.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.5 - CP36C and CP36Zs - Updated to change TRDBV procedures for use on PAPER filed returns.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.6.3 - ASFR Reconsideration Transcripts - New Section for procedures on Recon transcripts.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.7.9(1) - ASFR Address Verification - Updates to ASFR address is no longer permitted. Deleted Exception.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.7.11.15(4) - Status 040 - ADR Research Requested - Processing timeframe of 60 days added.

  • IPU 14U0447 issued 03-06-2014 IRM 5.18.1.7.11.36 - Status 81 - Suspense status for address research - Status deleted because ASFR address changes are no longer allowed; address changes are based on ADR and Master file.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.7.11.46 - Status 100: CLOSED, Agreed Response Pre-90 Day Letter- New procedure

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.7.11.47 - Status 100 - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.7.11.48 - Status 101 - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.7.11.51 - Status 105 - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.7.11.52 - Status 106 - Manual Closures - Updated this section to Manual closures from Manual Default for Combat Zone Module.

  • 5.18.1.7.11.54 - Status 108 - Filed Jointly, Post 30 day letter - New Status code.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.7.11.55 - Status 113: CLOSED, Agreed Response Post 90 - Day Letter - New procedure.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.7.11.57 - Status 335: Recreate 30 day Letter with New Address - New Status code to recreate 30 day letter with new address.

  • IPU 14U0447 issued 03-06-2014 IRM 5.18.1.8.3.1.20 - Possible Address Change - Tridoc deleted because ASFR address changes are no longer allowed; address changes are based on ADR and Master file.

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.8.3.1.31 - Status 097 - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.8.3.10 - ASFR 426 List - ASFR Transaction Failed List - New Section- Failed transactions requiring research.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.8.3.11 - ASFR 432 LIST: CASES WITH NO NAME/ADDRESS - Delete subsection, list no longer utilized.

  • 5.18.1.9.1 - ASFR 200 Report - Section updated to agree with changes to report.

  • 5.18.1.9.2 - ASFR 201 Report - Priority Chart updated.

  • 5.18.1.9.7 - ASFR 213 Report - Section deleted, report no longer exists.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.9.8 - ASFR 215 REPORT: New Cases with Non-Numeric Zip codes - Delete subsection, report no longer utilized.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.1(5) - Taxpayer Telephone Inquires - If/Then box added to re-issue 30 day letter in Spanish.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.1.3 - Potentially Dangerous Taxpayer and Caution Upon Contact - New Section.

  • IPU 13U1611 issued 11-04-2013 IRM 5.18.1.10.2.1.5 - ASFR Transshipment Procedures - Delete section - Transshipment of ASFR receipts will no longer exist.

  • IPU 13U1611 issued 11-04-2013 IRM 5.18.1.10.2.1.6 - ASFR Reconsideration Transshipment Procedures - Delete section - Transshipment of ASFR Reconsideration receipts will no longer exist.

  • IPU 14U0447 issued 03-06-2014 IRM 5.18.1.10.2.2.2 - Undelivered 30 day letter - Delete "ASFR and" from the tridoc because ASFR address changes are no longer allowed; address changes are based on ADR and Master file.

  • IPU 14U0447 issued 03-06-2014 IRM 5.18.1.10.2.2.3 - Undelivered 90 day letter - Delete "ASFR and" from the tridoc because ASFR address changes are no longer allowed; address changes are based on ADR and Master file.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.2(2) - IDRS Control - Since all ASFR sites are utilizing AMS this section is being updated to remove the requirement for inputting detailed history in IDRS control base.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.13 - Taxpayer Correspondence - Update to documenting telephone contact.

  • 5.18.1.10.2.3.13.2 - Filed Jointly - Updated for Status 108 process.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.13.3 - Deceased Taxpayer - Added (4) to direct user to IRM 21 for additional information.

  • 5.18.1.10.2.3.13.5 - Identity Theft - Minor clarification edits.

  • IPU 14U0356 issued 02-21-2014 IRM 5.18.1.10.2.3.13.5 - Identity Theft - Updated section to remove all references to CPAT and removed all data that is now present and updated in the IDT IRM 10.5.3

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.13.5(4) - Identity Theft - Updated section to use Correspondex letter 5064C rather than 239C or 2626C letters.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.13.5(13) - Identity Theft - Remove reference to IPSU 60 day follow-up.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.13.5(26) - Identity Theft - Added (26) regarding Multiple Function Controls.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.13.5(27) - Misuse of Dependent SSN - Point to 10.5.3.2.12 for instructions.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.13.13 - Making Work Pay Credit - Expired credit in TY 2011.

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.10.2.3.14 - Returns - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.14.3 - New section - W freeze Litigation.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.14.4 - New section - Y Freeze - Offer in Compromise.

  • IPU 14U1367 issued 09-19-2014 IRM 5.18.1.10.2.3.15.1 - Refund Statute Expiration Date (RSED) - Clarification of procedure.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.16 - Penalties - Updated to include instruction for manual calculation.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.16.1 - Failure to File- Updated instruction.

  • IPU 14U1324 issued 09-04-2014 IRM 5.18.1.10.2.3.16.2 - Failure to Pay - Updated instruction.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.18.2(2) - Case Referral - Fraud referral procedural update. NOTE added below If/Then table.

  • IPU 14U1325 issued 09-05-2014 IRM 5.18.1.10.2.3.19.1(2) - No Contact Math Error- Exception added.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.43 - Withholding - Update to documenting telephone contact.

  • IPU 13U1402 issued 08-28-2013 IRM 5.18.1.10.2.3.47(5) - Unsigned Returns - If/ Then box added to address procedure for Electronically signed returns containing ELF PIN.

  • IPU 13U1691 issued 11-27-2013 IRM 5.18.1.10.2.3.48.4(2) and (3) - Reason codes - Clarification on input procedures.

  • IPU 13U1423 issued 09-05-2013 IRM 5.18.1.10.2.3.52 - Updating ASFR when a Filed Return is Assessed on IDRS - Updated to include TC 495 input requirement if there is a TC 494 on the module.

  • IPU 14U0805 issued 05-05-2014 IRM 5.18.1.10.2.3.55 - ASFR 420 List - Delete subsection list no longer utilized.

Effect on Other Documents

This IRM supersedes IRM 5.18.1 dated June 21, 2013.

Audience

All employees who work and management that administers the Automated Substitute for Return for both SB/SE and W&I Operating Divisions will use this IRM.

Effective Date

(12-09-2014)


Rennae L. Ward
Director, Collection Inventory and Work Planning, Small Business/Self Employed

5.18.1.1  (01-25-2008)
Automated Substitute for Return (ASFR) Program Overview

  1. In the WI Operating Division, Compliance Services Collection Operation (CSCO) administers the ASFR program. In the SBSE Operating Division, ASFR is a separate Operation. The ASFR Program is worked in two WI Compliance Campuses, Austin and Fresno and in one SBSE Campus, the Brookhaven Campus. The ASFR functions prepare Substitute for Returns under the authority of Internal Revenue Code (IRC) Section 6020(b) and issue Statutory Notices of Deficiency as authorized by IRC Section 6212.

  2. ASFR is a non-filer or return delinquency program. Workplan closures include only modules where the TDI has been closed. Workplan closures include both systemic and non-systemic closures. Transfers or reassignment of an unresolved TDIs are not workplan closures. Workplan closures are reported on the ASFR 200 MIS Report. See IRM 5.18.1.9.1.

5.18.1.2  (10-01-2005)
What is ASFR?

  1. The ASFR program is the key compliance program within the Service that enforces filing compliance on taxpayers who have not filed individual income tax returns, but owe a significant income tax liability. ASFR determines and assesses the correct tax liability by:

    • Securing valid income tax returns from taxpayers, or

    • Computing tax, penalties, and interest, based upon Information Reporting Program (IRP) information submitted by payers, combined with other internally available information.

5.18.1.3  (10-01-2005)
ASFR Overview

  1. The Automated Substitute for Return (ASFR) system is a stand alone system which processes weekly and resides on a Sun Platform at the Enterprise Computing Center (ECC). The Collection Assignment Code (Tsign) for ASFR accounts is 8000. Unresolved TDIs are directly assigned to 8000 and uploaded to the ASFR database when the MF status of the TDI moves to Status 03, the selection code is an ASFR selection code, ASFR criteria is met and/or the account is already assigned to 8000. Modules may also be transferred from other functions, specifically FC and ACS, to ASFR if they meet ASFR criteria as defined in IRM 5.18.1.3.1.

5.18.1.3.1  (12-09-2014)
ASFR Criteria

  1. A module meets ASFR criteria if all the following conditions exist:

    • It is not older than five years prior to the current processing year and ,

    • It has IRP with a proposed tax liability of ≡ ≡ ≡ ≡ ≡ ≡ or more; or IRP with a proposed tax liability of ≡ ≡ ≡ ≡ ≡ ≡ or more for FERDI and,

    • IRP exists on CC IRPTRJ (IRPTR with definer “J” replaced MF Supol Nov. 1, 2011) for the module and,

    • It has no associated TDAs (Balance Due modules in Status 22, 24, 26), or no associated modules in Status 53 or Status 60 and,

    • The total IRP documents for the module are 60 or less and,

    • There are no -V, -W, -L, -Z or , Z- freezes on the module or account, and

    • The select code is not a CI, or IRS employee selection code.

    Note:

    If accounts are assigned to 8000 and they do not meet ASFR criteria, they will be systemically reassigned.

    Note:

    ASFR modules cannot be created if the Masterfile status is 12 or greater.

5.18.1.3.2  (06-20-2012)
ASFR Prioritization

  1. The manner in which ASFR prioritizes inventory changed in June 2012. The ASFR database will reflect all programming changes in FY 2012.

  2. ASFR inventory is now prioritized by Refund Hold (priority 0) and the number of weeks (1-6) since RH indicator was set. The weeks are called "buckets." The remaining priorities are by Tax Year with various categories for Net Tax Due which are called "buckets." The Priority Charts below outline Refund Hold and Non-Refund Hold prioritization.

    Refund Hold Priority Chart
      Bucket - Weeks since RH Indicator
    Priority 1 2 3 4 5 6
    0 Any Year            
    Non-Refund Hold Priority Chart
      Bucket - Net Tax Due
      1 2 3 4 5 6
    Net Tax Due Over 100K Net Tax Due $50,000 - $99,999 Net Tax Due Less than $50K
    Priority Multiple Module Single Module Multiple Module Single Module Multiple Module Single Module
    1 TY 2012            
    2 TY 2011            
    3 TY 2010            
    4 TY 2009            
    5 TY 2008            
    6 TY 2007            
  3. ASFR will issue Priority 0 first. Priority 1 is issued 2nd. Priority 2 will not be issued until all Priority 1 have been started. Priority 3 will not be issued until all of Priority 2 have been started. ASFR will work only 1 module per taxpayer. All related modules will be suspended pending resolution of the one started year. The "Hold" status for multiple modules where 1 module is started will be Status 734. See also 5.18.1.7.11.65 for explanation of Status 734.

    Note:

    Toll free assistors must ensure full compliance is performed to let the taxpayers know there are other unfiled years that may be enforced at a later date.

  4. The ASFR screen "Priority" field will be displayed as Priority/Bucket. IE: 0/1 for RH/1 week since RH indicator; 1/2 for TY 2010 for single module with Net Tax due over $100K.

    Note:

    Since ASFR prioritization of inventory changed in June 2012, if there was already a started module when the new change was initiated, a more current TY could possibly be suspended due to the already started module. IE: TY 2009 was already started on ASFR when TY 2010 came on, TY 2010 would be suspended to the "Hold" status, Status 734. This scenario will happen most often when the new tax years are brought on after tax year changes.

5.18.1.3.3  (10-01-2005)
ASFR Selection Codes

  1. Direct assignment of TDIs occurs systemically on the certain selection codes. See Document 6209 for a list of all select codes.

  2. Selection Codes are not part of new module validation. See IRM 5.18.1.8.

5.18.1.3.4  (01-25-2008)
ASFR Reassignment from 8000

  1. The Collection assignment code is changed from 8000 when all open TDIs are closed.

5.18.1.3.5  (10-01-2005)
Tax Delinquency Investigation (TDI) Supplement Information

  1. When a module is sent to ASFR, Master File TDI supplements (IRP information) are also sent. TDI supplements include the Information Returns Program (IRP) data, taxpayer entity data, and, when available, information from the last return filed (LRF).

5.18.1.3.6  (09-04-2014)
Access to ASFR

  1. Only employees and managers assigned to the ASFR function, PAS or Quality Review Analysts, System Administrators, ASFR programmers and Headquarter analysts have access to the ASFR system. If access is requested by other employees, contact must be made with Headquarters.

  2. In order to obtain access, an on-line 5081 must be input and approved by management requesting access to the "ASFR-TCC" production system.

  3. Access to ASFR requires two separate ID and passwords. The first login ID and password gains the user access to the operating system. The second employee number and password gains the user access to the ASFR application.

  4. Currently ASFR has the following types of users:

    • ASFR users - ASFR users can update to allow all normal processing and can generate all prints.

    • Key ASFR users – Key Users can update to statuses that deviate from normal processing, and can generate all prints.

    • ASFR Managers – Managers have the same abilities as Key Users. They also can update the Setup menu, generate listings of any Status, and query other information through the managers menu.

    Access is granted based on the information in the Special Instruction Section of the Online Form 5081 add user request. If a non-key user is allowed "key" access, they should submit a "modify profile" Online Form 5081 request and state this in the instructions section.

  5. For more specific information on how to obtain access to ASFR, refer to the ASFR Help Desk Handbook. The Handbook is available electronically and is distributed to all ASFR functions.

5.18.1.3.7  (12-10-2009)
Payer Agent/High Dollar Coordinator

  1. Each campus must designate a Payer Agent/High Dollar coordinator(s). The coordinator(s) is responsible for ensuring that modules in Status 007, and 038 are worked expeditiously. IRM 5.18.1.7.11.3. and IRM 5.18.1.7.11.13. The coordinator is also responsible for referring EINs to the National Payer Agent Coordinator for inclusion on the National Payer Agent File. See IRM 4.19.3.

  2. The Service Center Recognition/Image Processing System (SCRIPS) stores and retrieves digitized images of IRP documents and interfaces with the IDRS system. SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

5.18.1.3.8  (05-20-2011)
Internal Revenue Manual and Publication References

  1. ASFR function follows guidelines for the Taxpayer Advocate Program (IRM 13.1), Processing Timeliness (IRM 3.30.123) and (IRM 21.3.3.4.17.1.1) Correspondence Guidelines.

  2. The following additional IRMs are listed for convenience for in depth research required to resolve unusual technical issues not covered in the ASFR IRM. This research may be performed by the Lead per campus option. When reference to one of the related IRM is required for ASFR processing, the complete IRM reference will be stated in this IRM. This list is not inclusive.

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 4.19.10, Campus Examination Operations

    • IRM 4.19.3, IMF Automated Underreporter Program

    • IRM 5.19.1.6, Balance Due

    • IRM 5.19.2, Return Delinquency

    • IRM 3.11.6, DP Tax Adjustments

    • IRM 4.13.1, Audit Reconsiderations

    • IRM 25.6 Statute of Limitations

    • IRM 20.1 Penalty Handbook

    • IRM 20.2 Interest Handbook

    • IRM 25.12.1, Refund Hold

    • IRM 11.3, Disclosure

    • IRM 3.12, Error Resolution

    • IRM 3.17, Accounting

    • IRM 21, Customer Account Services

    • Publication 17

    • Package X

    • Document 6209

5.18.1.3.9  (10-01-2005)
ASFR Security System

  1. The ASFR system is designed to protect taxpayer data from unauthorized disclosure. All users are responsible for protecting taxpayer data. Users should only access data needed to perform their duties. Any infraction should be reported to management. See IRM 11.3 for disclosure guidelines. Additionally, users must safeguard their password.

5.18.1.3.10  (10-01-2005)
Protection of Taxpayer Accounts

  1. Prevent unauthorized disclosure of taxpayer information by following the guidelines in IRM 11.3 (Disclosure).

  2. For additional information regarding unauthorized access (UNAX), refer to the Supplemental Guide for IRS' Awareness Briefing on Unauthorized Access-UNAX for additional information or contact the Office of the Privacy Advocate's, UNAX Program Office on 202-283-UNAX.

5.18.1.3.11  (12-30-2011)
Federal/State Exchange Program

  1. The Federal/State exchange program for ASFR is systemically performed. All disclosure related questions should be referred to the Disclosure Help Desk 1-866-591-0860.

5.18.1.4  (01-25-2008)
Identifying Tax Delinquency Accounts (TDAs) Assigned to ASFR (8000)

  1. Only stand alone TDI accounts can be systemically assigned to 8000. However, while in 8000, associated modules can move into TDA Status (Status 22, 24, 26). When there are both TDI modules and TDA modules, the account is called a Combo account. When an account becomes a Combo account, ASFR assigns priority "1" to the TDI module. IRM 5.18.1.3.2. The following lists identify ASFR combo cases.

    • ASFR 423 List- IRM 5.18.1.4.1.

    • ASFR 400 List- IRM 5.18.1.4.2.

5.18.1.4.1  (05-19-2009)
ASFR 423 List—TDA Assigned to Assignment Number 8000

  1. The ASFR 423 lists certain accounts assigned to 8000 where the assignment should be changed. IRM 5.18.1.8.3.8.IRM 5.18.1.4.3.. This list contains two types of accounts:

    1. Stand-alone TDAs

    2. Combos with one module in Status 007, 010, 011, 012, 056, 080, 093, 380, 381, and 385.

    Work this list upon receipt. This list is generated weekly.

5.18.1.4.2  (01-25-2008)
ASFR 400 List—IDRS Research Failed List

  1. Information is noted on the ASFR 400 list as information item. Follow the instructions on reassignment of accounts in 8000 below. IRM 5.18.1.8.3.1.

5.18.1.4.3  (05-19-2009)
ASFR 423 List processing

  1. While Combo cases cannot be assigned to 8000, there will be accounts that become combo after the assignment to 8000 has occurred. These cases are priority cases for ASFR processing.

  2. The ASFR 423 listing contains cases with accounts in both TDA (status 22, 24, 26) and TDI modules that are on ASFR. The ASFR 423 listing is generated weekly and only contains Combos in ASFR unworkable statuses.

  3. Cases in ASFR non workable statuses: 007, 010, 011, 012, 093, 080, 056, 355, 380 and 385 should be processed based upon those status instructions as the list is received to ensure continued ASFR processing. Follow IRM 5.18.1.7.11. references to process the statuses listed.

  4. Once assessed on ASFR and the entire account is TDA these cases will be systemically reassigned to the appropriate function.

5.18.1.5  (09-04-2014)
CP 36Cs and CP 36Zs

  1. A CP 36Z is generated and sent to Files when a TC 976 posts on a module where an ASFR Dummy return has posted. Files will pull the return, attach the CP 36Z to the front of the return and route the return to the ASFR Operation, Department or Team.

    Note:

    If CP36Zs are not being received, open a ticket.

  2. A CP 36C is generated when a TC 976 posts on a module where an ASFR Dummy return has posted. The CP 36C prints at the campus based on the DLN of the TC 150. TC 150s posted with Philadelphia or Memphis DLNs are printed at Brookhaven. The CP 36C is routed to the ASFR Operation, Department or Team. The CP 36C is an information transcript that notifies the ASFR Operation that a return has been filed.

  3. When CP 36Cs are received, but the accompanying CP36Z with the return has not been received

    1. Research AMS for possible CIS image and print.

    2. If no CIS is available, you may be able to secure a copy of a return using CC: TRDBV.

    3. If TRDBV reflects an MeF return, use EUP to print the return. On MeF prints, indicate "PIN on File"

  4. If no return(s) are available online, input a document request for the TC 976. TRDBV is not to be used to prepare a "dummy return" if it is indicated a "PAPER" return was filed.

    1. If the document cannot be located, contact the taxpayer for a copy of the return.

5.18.1.6  (10-01-2005)
Account Maintenance (AM) Transcript

  1. AM transcripts generate when a module exists on IDRS and there exists an unresolved condition on the module. ASFR will receive AM04 and AM09 transcripts on modules assigned to 8000.

  2. ASFR Recon transcripts will generate when there is a possible unresolved ASFR Reconsideration issue, when a taxpayer files jointly under the spouse’s SSN.

5.18.1.6.1  (11-03-2010)
AM04 Transcripts

  1. AM04 transcripts are generated when a -A freeze (TC976) has not been released within 36 weeks. If received without the return, research AMS for possible CIS image, if the CIS is not available secure the return by both requesting the return from Files and/or contacting the taxpayer.

5.18.1.6.2  (12-30-2011)
AM09 Transcripts

  1. For ASFR cases, AM09 transcripts are generated when a credit exists on a module, and there is a TC 570 holding the credit. Either continue ASFR processing, release the credit or transfer the credit to the Excess Collection Account. See IRM 5.19.2.5.8 for instructions on transferring credits to Excess Collection Account (XSF). In addition, if the credit cannot be offset or refunded and remains on the module, a TC971 AC 296 must be input on IDRS using CC REQ77. However, if the credit/payment is offset, refunded, or moved to XSF, do not input a TC 971 AC 296.

    Note:

    This provides an audit trail indicating all credit(s) on the account module up to the input date of the TC 971 AC 296 have been researched and do not need to be researched again.

5.18.1.6.3  (09-04-2014)
ASFR Recon Transcripts

  1. ASFR Recon transcripts generate when TC 594 cc 084 with DLN blocking series and serial numbers 88888 or 99999 posts to a module with a prior ASFR default assessment. The transcript generates one time, in the cycle the TC 594 cc 084 posts.

    1. Verify a valid joint return was filed.

    2. Ensure the ASFR default assessment was reversed. If the default assessment is not reversed, follow procedures in IRM 5.18.1.10.2.3.13.2 Filed Jointly.

    3. If ASFR default assessment is reversed, verify all transaction codes per IRM 5.18.1.10.2.3.13.2 are present and close the transcript “previous action”.

      Exception:

      DO NOT input a second TC 594 cc 084.

5.18.1.7  (10-01-2005)
ASFR System Module Progression and Calculations

  1. When ASFR processing is initiated on a module, the ASFR system will calculate the proposed tax assessment, and generate both the 30-day and 90-day letters. The system will also systemically request a default assessment when the taxpayer doesn't provide a sufficient response or valid tax return.

    Note:

    A submission may be unprocessable for purposes of starting any period for payment of overpayment interest, but may still be valid.

5.18.1.7.1  (05-19-2009)
ASFR Dummy TC 150

  1. When an ASFR 30-Day Letter is generated, ASFR requests a TC 971 Action Code 141 post to the module. The TC 971 triggers a dummy return to then post. The dummy return posts as a TC 150 for $.00 to the module. An ASFR dummy return can be identified by the literal -SFR to the right of the TC 150 on TXMODA. Additionally, the tax class and tax type of the DLN will be 210 with a julian date of 887, the julian date for Exam SFR is 888. An ASFR dummy return and an account collection assignment of 8000 signifies that the account belongs to ASFR and ASFR processing has begun. Since only one tax return can post to a tax module on IDRS, all returns filed by taxpayers subsequent to the issuance of the 30-Day Letter must be manually assessed and input to IDRS. See IRM 5.18.1.10.2.3.14. for instruction on processing filed returns.

  2. When a Dummy TC 150 does not post, use the menu option 26 to recreate the dummy TC 150.

    Note:

    See ASFR Status 150 for more information. IRM 5.18.1.7.11.57

5.18.1.7.2  (10-01-2005)
Computing Taxable Income

  1. ASFR systemically computes taxable income on all modules.

  2. For questions about a particular income type, use Publication 17 or other IRS publications for research. Treatment of income can change from year to year.

5.18.1.7.3  (10-01-2005)
Computing Tax Due, Penalties and Interest

  1. ASFR systemically calculates tax, penalties and interest due on all proposed assessments. ASFR systemically calculates tax, penalties and interest to 28 days from the issuance date of the 30–day letter.

  2. If any changes are made to a module (e.g., deleting a case minor) carry change forward to case major so the correct tax is computed. IRM 5.18.1.7.8.

5.18.1.7.4  (05-19-2009)
Preparing and Processing ASFR Dummy Return

  1. ASFR generates a TC 971 AC141 which triggers a dummy return to post to the module. No paper return exists. Do not attempt to request the DLN from files or try to associate anything with it.

  2. If a dummy has not posted, request one using Option 26 on ASFR. IRM 5.18.1.7.13.

5.18.1.7.5  (01-28-2010)
Letter 2566 SC/CG (30-Day Letter)

  1. If a module passes TIF check 1 ( IRM 5.18.1.8.2.1.), the 30-Day Letter is systemically generated.

  2. The 30-Day Letter is mailed in address correction envelopes. When the 30 day letter is undeliverable the post office will return the letter with new address information when available.

    • If the taxpayer has a POA updated to ASFR, a duplicate 30-Day Letter is systemically addressed and mailed to the POA.

  3. The letter gives the taxpayer 30 days to respond. The system suspends the module for ≡ ≡ days from the date of the 30-Day Letter to allow taxpayer time to respond. ≡ ≡ ≡ ≡ ≡ ≡ ≡ suspense period is used for APO/FPO addresses.

5.18.1.7.6  (10-01-2005)
Statutory Notice of Deficiency (ASFR 90-Day Letter)

  1. At the conclusion of 30-Day Letter suspense period, if there is no/insufficient response, ASFR requests TIF check 2 ( IRM 5.18.1.8.2.2.) to ensure that ASFR processing should proceed. If a module passes the TIF check 2, ASFR generates a Statutory Notice of Deficiency (90–Day Letter).

  2. The 90-Day Letter is fully automated.

  3. The letter is sent by certified mail.

  4. A Post Office stamped original Certified Mail List should be received from the National Print Site and maintained by the Campus for each weekly 90–day mailout. If the Certified List is not received, open a ITAMS.

  5. Retire Certified Listings to the Federal Record Center after three years.

5.18.1.7.7  (01-28-2010)
Case Minor Review

  1. Review of case minors occurs when a module is in certain statuses (380 or 385), or when the taxpayer responds that the case minor is not valid or when a Payer Agent issue is discovered IRM 5.18.1.7.11.3.

    Caution:

    Be aware of Payer/Agent information.

  2. Delete the case minor when the payee name line(s) is obviously not the taxpayer. For example, the name line(s) contains any of the following groups:

    • Government agencies — federal, state, or local

    • School — private, public, colleges, universities, etc.

    • Charitable and tax-exempt organizations — hospitals, churches, medical centers, etc.

    • Pension Profit Sharing Plan name line(s) with the words "trustee" ,"trustee for" , etc.

  3. Consider the case minor valid (as belonging to the taxpayer) when ANY of the following conditions are present:

    1. The taxpayer's name is the only payee name on the case minor.

    2. The taxpayer's name appear in the first or the second name lines on the case minor.

    3. The payee name on the case minor implies a sole proprietorship type business, or the taxpayer's occupation as shown on Form 1040, Form 1040A, Form 1040EZ, or Schedule C or F is typically operated as a sole proprietorship or small business.

    4. The payee EIN on the case minor matches the EIN on the Schedule C or F.

  4. Delete case minors when:

    1. The payee entity contains the words "Estate of" .

    2. The taxpayer's name is preceded by the word "by" .

    3. The payee(s) name is obviously different from the tax account names and does not contain obvious business words, even though the SSN matches.

    4. EIN 99–9999999, foreign income, is present and another EIN is present for the same payer. Case minor dollar amounts may vary due to currency exchange rates.

      Note:

      Delete the 99–9999999 case minors ONLY when both are present. Foreign Source case minors are treated the same as domestic source case minors.

  5. Consider case minors with the following conditions valid:

    1. The payer's name is garbled, missing, or incomplete.

    2. The payee's first and last name are in a different order on the case minor.

    3. The payee name line includes the taxpayer's title (MD, DDS, CPA, etc.).

    4. Only a name control is showing as the payee name and it matches the taxpayer's name.

    5. The payee second name line includes "c/o" (or a variation) followed by the taxpayer's name.

    6. The payee name line contains obvious business words and it is determined that the payee is the taxpayer.

    7. The literal is "AMEND" and the document does not match the original documents.

    8. The payee name is followed by "and" or "or" without other names.

    9. The case minor payee name is a maiden name. If the payee's first name or initial on the case minor are the same as the tax account name, consider case minor valid.

    10. The word "rollover" is present on either the payee or payer side.

  6. Amended case minors are by the literal "AMEND" . ASFR will systemically use the amended minor. However, if ASFR cannot determine which to use, manual correction of the minor and major is needed.

  7. A blank in the amount field of an amended case minor represents $0 (zero).

  8. Delete original case minors if amended case minors match an original. The amended and original case minor must have:

    • The same payer name and/or EIN.

    • The same account number (if present).

    • The same type of income.

  9. Amended case minors may reflect incomplete information; neither amount literals nor $0 (zero dollar amounts) are displayed. If such an case minor is present, assume the payer/employer attempted to zero out an incorrect income amount previously reported.

  10. Add all case minors if the amended case minor(s) does not match an original, or if the amended case minor matches more than one of the other case minors.

  11. If all elements (SSN/EIN, name, amount, account number, income type, etc.) on any two case minors are identical:

    1. Delete one of the case minors.

  12. If all elements on any two case minors are identical except that one does not contain an account number, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  13. If the income amount of any two case minors is the same and the same sequence of numbers or characters can be identified in both account numbers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  14. Do not consider case minors as duplicates when the account numbers are obviously different, even though all other elements are identical.

  15. Do not consider duplicate any two Form 1099–B or Form 1099–S case minors unless the sales date is the same.

  16. If the case minor indicates that the income is non-taxable, delete the minor.

  17. If Forms 1099–INT or DIV identifies in the payee or payer area on the minor as being income from

    • Keogh (HR-10) or 403(b) accounts

    • SEP or IRA accounts

    • Municipal Bond funds

    • A Pension Plan or Profit Sharing Plan (including a 401(k) plan).

    • Capital Construction Fund (CCF) account

    , delete the minor.

5.18.1.7.8  (01-28-2010)
Deleting and Adding Case Minors

  1. Whenever a case minor is amended, deleted or added, the case major must also be updated to reflect the change to income.

    1. To delete or amend access the Tax Module screen. Request Option 3. Scroll through the minors until the one to amend is found. Make necessary changes. Exit Option 3, and make the necessary changes to the case major. IRM 5.18.1.7.13.

    2. To add a minor, go to the ASFR Main Menu, and access Option 12. Fill in the screen, exit, and update the case major for the module.

  2. Do the following:

    If the adding or deleting of a case minor(s) results in net tax due of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and Then
    No 30–day letter has been sent, Update to Status 071. IRM 5.18.1.7.11.28.
    A 30–day letter has been sent,
    • On IDRS, input a TC 590 CC 88, TC 290 for $.00 and TC 887 for .01-, TC 999 for $.00, and TC 971 AC 001. IRM 5.18.1.7.1 for DLN explanation. Resolve any credits.

    • Update ASFR to Status 101.

    • Send taxpayer correspondex letter notifying them that the case is resolved.

    A 90–day letter has been sent,
    • On IDRS, input a TC 590 CC 88, TC 290 for $.00 and TC 887 for .01- ,TC 495, TC 999 for $.00, and TC 971 AC001. Resolve any credits.

    • Updated ASFR to Status 101.

    • Send taxpayer correspondex letter notifying them that the case is resolved.

    If the adding or deleting of the case minor(s) results in net tax due of ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Then
    No 30–day letter has been sent, Update to Status 031.
    A 30–day letter has been sent, Re-issue 30-Day Letter. Update to Status 032.
    • Advise TP that if they do not file by the 90-day letter date that they will be charged at the higher rate.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status.

    Notify the taxpayer that a revised 30–day letter is being issued.
    A 90–day letter has been sent, Advise the TP to file a correct return and advise the TP that the period for petitioning cannot and has not been extended. Do not update Status out of Status 090.

5.18.1.7.9  (05-05-2014)
ASFR Address Verification

  1. Addresses on ASFR are systemically uploaded and refreshed from IDRS weekly.

5.18.1.7.9.1  (01-25-2008)
Address Uploads

  1. The IDRS and Master File address is updated when address information becomes available from a tax return processed, a notification of change of address from the taxpayer or by the National Change of Address (NCOA).

    Note:

    The National Change of Address (NCOA) is a United States Postal Service (USPS) database. The IRS accesses the NCOA database to update taxpayer records maintained in the automated Masterfile for the purpose of updating the IRS’s mailing list. The IRS receives a copy of the entire database.

  2. If the MF and IDRS addresses are updated, ASFR will receive the new entity information and update the entity on ASFR. The literal "Address Update per SIA refresh" and a Status reference code 990 will appear on the ASFR module screen.

5.18.1.7.9.2  (03-04-2011)
Address Research through ADR

  1. If an ASFR 30–day letter is returned undeliverable, research is performed through the Address Research (ADR). There is no manual undeliverable research performed.

    Caution:

    Only update modules in Status 030 to Status 040. Do not update modules to Status 040 that are in a response Status or Status 090.

    Note:

    Do not update modules with a Refund Hold indicator to status 040. Continue the ASFR.

  2. During weekly processing, ADR processes modules from ASFR undeliverable Statuses 340, and 040, for address research. The modules are systemically moved from Status 340 and 040 to Status 342 to indicate ADR research started. IRM 5.18.1.7.11.60

    Caution:

    Do not move modules out of Status 342 unless a return is received.

  3. When the modules come back from ADR, ASFR updates the status to indicate what took place.

    If Then
    ADR secures a new address or a new address is updated through SIA refresh, IRM 5.18.1.7.9.
    • The module is moved to Status 031.

    • The ASFR address in the entity record is updated.

      Note:

      ADR updates the MF address.

    No new address is found and no 30–Day Letter has been sent, The module is moved to Status 031.
    No new address is found and a 30–Day Letter has been sent, The module is moved to Status 030 with an expired follow-up date.

    Note:

    Do not request ADR research again when less than 150 days have passed since the prior ADR research or if the module is in 90-day Status.

5.18.1.7.10  (01-25-2008)
ASFR Archive

  1. Effective June 21, 2005, an ASFR Archive database was established. The database stores all ASFR generated documentation on ASFR closed modules where a 30-day letter has been generated, and modules where the taxpayer has petitioned the Tax Court, Status 074 modules.

  2. Subsequent to June 21, 2005, paper files on ASFR systemic assessments (defaults) are not available, and all ASFR generated documentation is stored on the ASFR archive database. Additionally, all ASFR generated documentation on manual assessments subsequent to June 21, 2005, is stored on the ASFR archive database, and is not associated with the manual assessments.

  3. The Archive database is accessed through ASFR MENU. Choose the Archive database option. Documentation can then be queried and printed by TIN or TIN/TAX YEAR.

  4. All requests for ASFR documentation on assessments subsequent to June 21, 2005 are worked by the ASFR functions as access to ASFR is required to retrieve the information.

5.18.1.7.11  (10-01-2005)
ASFR Statuses

  1. All ASFR inventory exists in statuses. Statuses define where the module is in the ASFR process, and if the module is workable, or non-workable.

  2. ASFR uses status codes as an audit trail to document that each legal requirement is met before assessment. Statuses are also used to identify failed conditions on modules so that the appropriate actions can be taken to resolve any issues.

  3. Statuses also indicate that a specific letter was sent to the taxpayer and that a return or correspondence was received.

  4. HQ analysts will create new Status codes to meet new situations, and delete previously used Status codes when program enhancements and/or IRM changes occur.

5.18.1.7.11.1  (10-01-2005)
Statuses 000 and 001: Internal Use Only ASFR System Statuses

  1. ASFR uses these internal Statuses during weekly new module processing, when new modules are downloaded onto the system. Status 000 and Status 001 should never appear on ASFR screen and is not shown on ASFR–211 REPORT—Status CODES in USE. IRM 5.18.1.9.6.

  2. If Status 000 or Status 001 appears on any ASFR module, notify the team leader and system administrator to immediately shut down the system to research and correct the problem.

5.18.1.7.11.2  (10-01-2005)
Status 005: Internal Use Only ASFR System Status

  1. ASFR uses Status 005 to systemically correct joint name line modules. ASFR retains the first name to the left of the ampersand (&) and deletes the secondary name to the right of the ampersand on the TDI record screen.

  2. ASFR only uses filing statuses of single or married filing separately when preparing a proposed assessment for the 30-Day Letter. Status 005 is not shown on ASFR–211 REPORT—Status CODES IN USE. IRM 5.18.1.9.6.

5.18.1.7.11.3  (12-13-2012)
Status 007: Pre-30-Day Problem…Payer Agent List

  1. The AUR function maintains the Payer Agent List. The Payer Agent List is a list of businesses by EIN who reported income and there are discrepancies in what was reported. ASFR runs a file of all the EINs on the Payer Agent List weekly against all the case minors on the ASFR database. If the EIN and the document code on the Payer Agent list matches the EIN and the document code on a case minor on a module and the module is in a pre 30-Day letter Status, ASFR systemically updates the module to Status 007.

  2. Modules in Status 007 must be reviewed and updated weekly. Access the module on ASFR and review the Comments. Comments contains information on which case minors were filed by businesses on the Payer Agent List.

    If Then
    Four or less matches are found all the case minor sequence number will appear in Comments.
    More than four are found the comments will state "MULTI PAYER AGENT-MANUAL SEARCH. and manual review of all case minors is required."
  3. Access the ASFR Payer Agent file by accessing Option 10 on the ASFR menu or by accessing Option 15 on the Tax Module screen. IRM 5.18.1.7.13.

  4. Determine if the case minor should be amended, eliminated entirely, or left untouched based on the Payer Agent List information.

    Caution:

    SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

  5. If eliminating the case minor, code the non-add field on the case minor with a "B."

  6. Correct the case major based on all changes made to the case minor. For example, if interest income is being deleted based on Payer Agent information, then that amount of interest income must be deleted from the interest field on the major record. IRM 5.18.1.7.8.

    If Then
    The change results in net tax due of ≡ ≡ ≡ ≡ or more,
    1. Update module to Status 031.

    2. Add a note in the remarks field on the bottom of the case minor record to indicate the action taken and why.

    3. On the ASFR module screen, clear the COMMENTS field .

    The change results in net tax due of less than ≡ ≡ ≡ ≡ ≡ ≡
    1. Update module to Status 071.

    Caution:

    The case major record does NOT systemically update when a change is made to a minor record. Always correct the case major manually.

  7. To add the case minor to the ASFR Payer Agent file, use the ADD option listed on the ASFR Payer Agent menu.

  8. Modules placed into Status 007 have a 7 day follow-up and will appear on the ASFR-424 LIST NO ACTIVITY. Work modules in Status 007 weekly.

5.18.1.7.11.4  (10-01-2005)
Status 010: Pre-30-Day Problem (CI/Exam Review Needed)

  1. Status 010 indicates that CI/Exam review is required.

  2. Modules are placed in Status 010 during weekly new module validation. IRM 5.18.1.8.1.) when at least one of following conditions is met:

    • Primary TDI code of "T" for Examination

    • Primary TDI code of "U" for Criminal Investigation

    • TDI Case Code of 3949 from Criminal Investigation request

    • TDI Case Code of 914 intelligence freeze

    • TDI Case Code of 5346 from Examination request

  3. ASFR processing is not terminated on the Criminal Investigation and Examination modules. Research modules on IDRS for freeze conditions, fact of filing, or significant TSIGN(s). If necessary, forward ASFR transcripts on Form 3210, Document Transmittal, to Examination or Criminal Investigation for review.

    If Then
    Module selected by Criminal Investigation Update to Status 063. IRM 5.18.1.7.11.21.
    Module is selected by Examination Update to Status 064. IRM 5.18.1.7.11.22.
    Criminal Investigation or Examination advises to continue normal processing Update the module to Status 032, if the module was previously in Status 039 and when no 30-Day Letter was issued.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status

    . Update the module to 091, if the module was previously in Status 099 and when a 30-Day Letter was issued, but a 90-day has not been issued. Update the module to Status 104, if the module was in Status 097 and a default should be input. Input Comments that CI or Examination advises to continue ASFR processing.
  4. These modules appear on the ASFR-424 LIST-NO ACTIVITY if no action takes place within 45 days. IRM 5.18.1.8.3.9.

5.18.1.7.11.5  (06-21-2013)
Status 011: Centralized Insolvency Office (CIO) (Formerly Technical Support Function

  1. Status 011 indicates that Centralized Insolvency (-V Freeze) or Advisory Group (-W Freeze) is working the bankruptcy issue.

  2. Status 011 modules meet at least one of the following:

    • Bankruptcy indicator is 1 on TDI record(s)

    • Primary TDI code is "Q" bankruptcy

      Note:

      Bankruptcy conditions may also be identified during the TIF checks. Reversal of the TC 520 does not always indicate the module is released from protection of the Bankruptcy Court which prohibits further assessment for the tax years of the bankruptcy.

  3. Update modules with –V Freeze to Status 717 to close the module. DO NOT UPDATE –V FREEZE TO STATUS 011. Insolvency modules are identified by an unreversed TC 520 on the module. An entity freeze code is created at MF by the TC 520 and shows on IDRS as a —V or —W freeze. See Document 6209, Chapter 8 for more information on Freeze codes. See 21.5.6.4.44 for additional instruction on –V Freeze and 21.5.6.4.46 for –W Freeze.

  4. Research IDRS.

    If Then
    There is no indication of bankruptcy on IDRS (no TC 520 or TC 521 on TXMOD) Update the module to Status 032, if the module was previously in Status 039 and when no 30-Day Letter was issued.

    Note:

    Update to Status 032 requires manual review of all other failed conditions. If other failed conditions are found, correct the condition or close the module by updating to the appropriate closure status.

    Update the module to 091, if the module was previously in Status 099 and when a 30-Day Letter was issued, but a 90-day has not been issued. Update the module to Status 104, if the module was in Status 097 and a default should be input.
    There is a TC 520 or TC 521 Contact the appropriate SB/SE Area Office CIO or Advisory Group (formerly Technical Support Function) for disposition of the case. Verify the Document Locator Number (DLN) of the TC 520 before contacting either CIO or Advisory.
    CIO or Advisory advises termination of the ASFR module
    • Transfer the case to CIO or Advisory.

    • Update ASFR module to Status 063.

    • Prepare Form 3210 and forward ASFR case to the appropriate Technical Support Function office.

    TC 520 has posted and ASFR has issued a 90-Day Letter,
    • Contact Centralized Insolvency ≡ ≡ ≡ ≡ ≡ ≡ ≡ for – W Freeze modules.

    • No default assessment can be made until 60 days after a TC 521 has posted.

    • Modules that were in Status 090 and a TC 520 posts to IDRS, will fail to Status 097. Do not update modules from Status 097 to Status 104, until 60 days after a TC 521 posts.

    • Update module to Status 080, when the assessment cannot be input. Update the tax Module screen with comments that there is an open TC 520, and the default cannot be input.

    No response is received from CIO or Advisory request for advice within 30 days
    • Refer the case to campus revenue officer or designee for Territory Office contact regarding module disposition.

    • If CIO or Advisory are still not responsive, ASFR management should contact the respective area.

    IF Then
    Insolvency identifies a case that has been assessed by ASFR in violation of the automatic stay they will contact ASFR to make an adjustment. The ASFR Bankruptcy Coordinator will reverse the assessment and establish an IDRS control base for continued monitoring
    1. When the campus is contacted to abate the default, then the coordinator will abate the default and monitor the case until the TC 521 posts.

    2. The ASFR Bankruptcy Coordinator will address the TC 521 using the below guidelines.

    Guidelines for TC521:

    • An assessment by default cannot be input without Insolvency approval. If Insolvency approves of the assessment by default then the ASFR Bankruptcy Coordinator will document the approval on the case history sheet and on AMS.

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

  5. Request to rescind a 90-Day Letter by CIO or Advisory must be in writing and must be signed by delegated Campus authority.

5.18.1.7.11.6  (12-30-2011)
Status 012: Advisory Group (formerly Technical Support Function Review (Field Contact) -W Freeze

  1. Status 012 indicates that contact has been made with Centralized Insolvency Office (CIO) or Advisory and they require additional time to review the module – W Freeze Advisory, -V Freeze CIO.

  2. Manually update modules to Status 012 only after initial contact is made with CIO or the Advisory Group in the Territory Office. This is a suspense Status indicating that additional CIO or Advisory Group field research is needed. See 21.5.6.4.46 for additional instruction on –W Freeze.

  3. Modules in this Status are suspended for 60 days before they appear on ASFR-424 LIST-NO ACTIVITY. IRM 5.18.1.8.3.9.

  4. Status 012 cases appearing on the ASFR 424 LIST-NO ACTIVITY with –V freeze are to be removed from ASFR without further contact with CIO by moving the case to Status 717.

5.18.1.7.11.7  (10-01-2005)
Status 015: Ineligible ASFR (Await Closure of Active ASFR Module)

  1. Status 015 indicates that the module does not meet ASFR criteria.

  2. Modules are placed in Status 015 systemically during new module processing (weekly) when they have failed the module validation and there is another module(s) on the same taxpayer that is progressing through the ASFR system. Status 015 has a 120 day follow-up.

  3. At the conclusion of the 120 day suspense period, the system will examine the entity again to determine if the related module is still present or not. If the other module is still OPEN on ASFR, the system will move the Status 015 module into Status 016.

  4. When the valid module(s) is no longer present or is in a satisfied (closed) ASFR Status, the Status 015 module will systemically move to Status 762 for reassignment of the account from 8000.

5.18.1.7.11.8  (10-01-2005)
Status 016: Ineligible ASFR (Additional 60-Day Extension From Status 015)

  1. Status 016 is an extension of Status 015.

  2. Status 016 gives an additional 60-day extension for modules in Status 015. These modules are systemically monitored for closure of the valid module.

  3. When the valid module(s) is no longer present or is in a satisfied (closed) ASFR Status, the Status 016 module will systemically move to Status 762 for reassignment of the account from 8000.

5.18.1.7.11.9  (10-01-2005)
Status 030: 30-Day Letter Created (30-Day Mailout)

  1. Status 030 indicates that a 30-Day Letter has been generated.

  2. Modules are systemically moved into Status 030 (from Status 032 and Status 035) after passing TIF check 1. IRM 5.18.1.8.2.1.

    Note:

    The Status 030 date is not the date of the 30-Day Letter. Access the Audit screen, option 04 on ASFR to determine the mailout date.

    IRM 5.18.1.7.15.

5.18.1.7.11.9.1  (06-21-2013)
ASFR 30-Day Letter

  1. The ASFR 30-Day Letter is automated. The 30-Day Letter consists of:

    • 30-Day Letter 2566SC/CG

    • Tax Calculation Summary

    • Explanation of Penalties and Interest

    • Taxpayer Consent Form- Waiver

    • Summary of the Income Sources

    • Publication 1

    • Publications 5 and 594

    • Notice 609

    • Cover Sheet

    • Return envelope

      Note:

      If there is allocated tips income, 2504 , Agreement to Assessment and Collection of Additional Tax and Acceptance of Overassessment, is added to the Letter.

5.18.1.7.11.10  (01-25-2008)
Status 031: Pre-30-Day IDRS

  1. Status 031 indicates that the module is workable and unstarted. All unstarted Status 031 is unassigned or Corporate Inventory. When a site requests starts, the started modules become assigned to that site. Status 031 modules may be assigned if the modules were updated to Status 031 by an employee.

  2. The ASFR system systemically places modules in Status 031 when new modules have passed new module validation. IRM 5.18.1.8.1.

  3. Modules are manually moved into this status when an employee corrects/perfects a module or completes needed research on the new module (e.g., UD research, Exam review etc.) and they have determined that the module is now ready for TIF check 1. IRM 5.18.1.8.2.1.

  4. Modules remain in Status 031, in priority order, until requested for IDRS research, TIF check 1, prior to issuing the 30-Day Letter.

  5. Management uses the manager’s menu to indicate the volume of modules selected for research TIF check 1 (preparing the modules for the 30-Day Letter action). IRM 5.18.1.8.2.1. Modules will be selected based on ASFR prioritization.

  6. ASFR Prioritization is systemic. IRM 5.18.1.3.2.

  7. During the next week's processing, the modules move from Status 031 into:

    • Status 035, Status 030, passed TIF check 1, 30-Day Letter created

    • Status 032, Status 030, passed TIF check 1, 30-Day Letter created

    • Status 039 - failed TIF check 1, research and resolve manually

    Note:

    Associated modules regardless of priority will be selected when a module with a higher priority is selected. This means that there may be times when a larger number of 30-day letters are generated than the number of modules management requested.

5.18.1.7.11.11  (10-01-2005)
Status 032: PASSES IDRS CHECK, Issue 30-Day Letter

  1. Status 032 indicates that the module passed TIF check 1. IRM 5.18.1.8.2.1.

  2. Modules are systemically moved to Status 032 when they pass TIF check 1. IRM 5.18.1.8.2.1. The modules will move to Status 030 the same week, it moves to Status 032.

    Note:

    Status 032 should not appear on the ASFR 201 Report.

  3. The volume of 30-Day Letters requested will be systemically determined based on the number of modules that passed TIF check 1.

5.18.1.7.11.12  (10-01-2005)
Status 035: Cancel Previous 30-Day Letter, Reissue

  1. Status 035 indicates that a 30-Day Letter has been requested.

  2. This Status is generated by an ASFR program, when an entire batch of 30-day letters needs to be re-created. This happens when:

    1. an erroneous mailout date was entered on the reports, or

    2. the file was not received or processed timely by the National Print Site.

  3. This status is also used by employees to bypass TIF check 1 and generate a 30-Day Letter.

    Note:

    CAUTION must be used when updating to 035, as all validation performed by the TIF check 1 must be manually performed.

  4. If modules were in Status 030, the follow-up date will be RESET.

5.18.1.7.11.13  (12-10-2009)
Status 038: Tax Assessments over $100,000

  1. Unstarted modules with potential $100K or more assessments, exclusive of tax based on stock and bonds gross sales, are systemically moved into Status 038 weekly. ASFR also generates the 430 List of all modules moved into Status 038. The 430 List must be worked weekly by each site. IRM 5.18.1.8.3.11

  2. Review of potential over $100K assessments will be made to ensure accurate default assessments for the ASFR program.

    Note:

    After review of modules, print an Administrative File for potential assessments of over $1 Million and forward to your local coordinator.

  3. Determine if Payer contact is required: Review the case minors on ASFR and the information on IRPTR and SUPOL to ensure accuracy. If there is a case minor that is apparently erroneous, i.e. obvious decimal point error, or obvious Payer Agent transmission error ie: Payer EIN transmitted as amount of income, research the Payer Agent List. If the EIN is on the Payer Agent List, follow the Status 007 procedures. IRM 5.18.1.7.11. If the EIN is not on the Payer Agent List, contact payer for verification of income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. If the payer states that there is an error on the case minor, follow Status 007 procedures to correct the module. IRM 5.18.1.7.11. Input comments on ASFR that Status 038 research was completed. You may also compare prior year information, if available, and look for inconsistency between tax years. If prior year income was significantly lower and there appears no justification for the spike, contact employer to ensure documents are correct. Follow the chart below for examples of possible incorrect payer data.

    Caution:

    SCRIPS system errors have been identified where non-monetary information (social security number, or state identification number) was included in dollar amount fields. Users should use extreme care when reviewing income on Form 1099-MISC. Income amounts for Attorney Fees, Fishing Income, or Crop Insurance that exceed $10,000,000 may be incorrect.

    IF THEN
    Last filed year had income less than $100,000 Contact employer to determine if delinquency year wages are correct
    Delinquency year wages were received from a restaurant and are less than $10,000, Allocated tips are over $1 million, contact employer.
    Taxpayer is over 65 and prior year income was less than $100,000 Contact employer if wages are now over $1 million
    No prior return filing information is available Contact employer to verify data on delinquent year

    Note:

    The above chart depicts examples only, dollar amounts may vary.

    Note:

    Prior to contacting payers to verify information reported for a specific taxpayer - IRC 7602 requires Third Party Contact notification requirements have been met, see IRM 5.1.17. Issuance of CP 518 includes advance notification of possible Third Party Contact, meeting requirements for contact in addition to generating a TC 971 AC 611.

    Note:

    Input a comment on ASFR indicating the action taken. IE: Notate if the employer was contacted, qnote sent, annotations should indicate case minor information.

    1. Verifying/Conducting Third Party Contact:

      IF THEN
      CP 518 was issued on TY in question within the past 12 months
      1. Contact payer to verify reported income.

      2. Prepare and submit Form 12175 per 5.1.17.5

      CP 518 was not issued on TY in question within the past 12 months
      1. Issue letter 3232C Third Party Contact notification, input TC 971 AC 611 2

      2. Ten days after letter mail-out date, contact payer to verify reported income.

      3. Prepare and submit Form 12175 per 5.1.17.5

    2. If it is determined the potential $100K assessment is due to Payer Agent data follow IRM 5.18.1.7.11.3.

      Note:

      Appropriate movement out of 038 is restricted to managers and key techs

    3. If it is determined the proposed assessment is accurate move case to Status 032 if appropriate to continue ASFR processing.

    4. If there are no apparent issues with the ASFR case minors, then do the following:

      IF THEN
      There is a W-2, or a 1099 of any kind with income over $1,000,000 and it is apparent that the income is accurate, i.e. gambling winnings from a casino, NEC paid to a doctor from an insurance company, etc., Update module to Status 031. Input comments on ASFR that Status 038 research was completed.
      There is a W-2, or a 1099 of any kind with income over $1,000,000 and it is not apparent that the income is accurate, i.e. gambling winnings from a casino, NEC paid to a doctor from an insurance company, etc., Research prior year IRP.
      1. If prior year IRP shows income within 50% of the income shown as ASFR total income (Multiply the prior year income by 1.50. If the ASFR income is less than the result, consider income reported accurately.), update module to Status 031. Input comments on ASFR that Status 038 research was completed.

      2. If prior year IRP shows income less than 50% of the income shown as ASFR total income, (Multiple the prior year income by 1.50. If the ASFR income is greater than the result, payer contact is required.), contact payer who reported income over $1,000,000 to verify income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow Status 007 procedures to correct the module. IRM 5.18.1.7.11.3.

      3. If there is no prior year IRP available, contact payer who reported income over $1,000,000. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow 007 procedures to correct the module. IRM 5.18.1.7.11.3.

      There is no one W-2, or a 1099 of any kind with income over $1,000,000 Research prior year IRP.
      1. If prior year IRP shows income from the same payer within 50% of the income shown in ASFR year (Multiply the prior year case minor income by 1.50. If the ASFR same payer case minor income is less than the result, consider income reported accurately.), update module to Status 031. Input comments on ASFR that Status 038 research was completed.

      2. If prior year IRP shows income from the same payer less than 50% of the income shown on the ASFR case minor, (Multiply the prior year case minor by 1.50. If the ASFR case minor income is greater than the result, payer contact is required.), contact payer who reported the largest amount of the total income to verify income. If the payer verifies the income or there is no response from the payer within 30 days from the date the request was sent, update module to Status 031. Input comments on ASFR that Status 038 research was completed. If the payer states that there is an error on the case minor, follow Status 007 procedures to correct the module. IRM 5.18.1.7.11.3.

      3. If there is no prior year IRP available, update to Status 031. Input comments on ASFR that Status 038 research was completed.

      Note:

      Third party contact procedures must be followed prior to contacting the payer. IRM 5.18.1.10.2.3.11.

5.18.1.7.11.14  (10-01-2005)
Status 039: FAILED IDRS Analysis, Pre-30-Day Letter

  1. Status 039 indicates that the module has failed TIF check 1. IRM 5.18.1.8.2.1. These modules were previously in Status 031.

  2. Modules in Status 039 will appear on the ASFR–400 LIST—IDRS RESEARCH Failed LIST for resolution. IRM 5.18.1.8.3.1.

  3. Modules in Status 039 have a 45-day suspension. If the modules remain in Status 039 beyond 45 days, they will appear on the ASFR–424 LIST—NO ACTIVITY LIST. IRM 5.18.1.8.3.9.

    Caution:

    Never manually update a module to Status 039.

5.18.1.7.11.15  (08-28-2013)
Status 040: ADR Research Requested

  1. Status 040 indicates that Undeliverable, ADR, research has been requested. IRM 5.18.1.7.9.

  2. When a module in Status 030 is returned from the Post Office as Undeliverable, update the status to Status 040.

    Exception:

    Do not update modules with a Refund Hold indicator to status 040. ASFR does not forward Refund Hold to ADR for research. Research for a newer address on CC ENMOD and update ASFR if a new one is found. Continue ASFR even if a new address is not found.

    Note:

    Consider Refused, Deceased returned 30-day letters, or any other statements written on a returned 30-Day Letter, correspondence. IRM 5.18.1.10.2.1.1.

    Note:

    Do not update to Status 040 if the current status is 051, 080 or 093, follow Taxpayer Response procedures. IRM 5.18.1.10.2. Status 040 is only used when a 30-Day Letter is returned as undeliverable. If the module is not in Status 030, see Lead or Team Leader.

  3. During weekly processing the status will be updated systemically to Status 342. A file of all modules updated to Status 342 will be sent to the Address Research System (ADR) to initiate Undeliverable Research. If another address is found, the ADR automatically sends a contact letter requesting that the taxpayer reply with their current address.

  4. The processing timeframe for processing cases through ADR is 60 days.

5.18.1.7.11.16  (10-01-2005)
Status 051: Post-30–Day Taxpayer Paper Correspondence

  1. Status 051 indicates that taxpayer correspondence was received prior to issuance of the 90-Day Letter.

    Note:

    This status is for taxpayer paper correspondence without returns attached only. Do not update to Status 051 for telephone contact.

  2. Status 051 is the suspense status used when taxpayer correspondence is received and a 90-Day Letter has not been issued. Status 051 has a 60 day suspension, and will appear on the ASFR-424 LIST-NO ACTIVITY when the suspension period has expired.

  3. If the correspondence is not updated to Status 051, when the Status 030 follow-up date expires, a 90–day letter will be issued.

5.18.1.7.11.17  (09-03-2010)
Status 056: Presidentially Declared Disaster Area or Terroristic or Military Action Suspense Period

  1. Status 056 indicates that the taxpayer is in a federally declared disaster area or was affected by a terroristic or military action.

    Note:

    The deadlines for certain acts performed by taxpayers (e.g. filing and paying) and the Service may be postponed for a period of up to a year. The length of the postponement period is prescribed in the Notice (or other guidance including an IRS News Release) issued by the Service regarding a particular disaster or action. See IRM 25.6.16.

  2. Status 056 suspension is 60 days. If no action is taken during the 60 days, the modules will appear on the ASFR 424-NO ACTIVITY LIST. However, the suspense period is systemically extended if the suspension period is extended beyond 60 days.

  3. A utility program will identify, by ZIP codes, the impacted ASFR modules. Once identified, the utility will move the modules to Status 056. Do not manually move modules.

  4. After suspense period expires, modules systemically move back to the status they were in prior to Status 056.

    Note:

    See IRM 25.16.1 for additional instructions if the taxpayer states they are impacted by the disaster, but are located outside the covered disaster area.


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