Part 5. Collecting Process

Chapter 18. Liability Determination

Section 2. Business Returns IRC 6020(b) Processing

5.18.2  Business Returns IRC 6020(b) Processing

5.18.2.1  (06-01-2010)
IRC 6020(b)

  1. IRC 6020(b) provides a way to prepare returns and secure assessments from non-filing taxpayers who:

    • Have an open filing requirement

    • Do not file a return as required

5.18.2.2  (06-01-2010)
What is Business Returns IRC 6020(b) Processing?

  1. Internal Revenue Code 6020(b) is the authority given to the Commissioner of the Internal Revenue Service to prepare and process returns for non-filing business taxpayers.

  2. Delegation Order No. 182 (Rev. 7), extends 6020(b) authority to Internal Revenue Agents; Tax Auditors; Revenue Officers, GS-9 and above; Collection Support Function Managers, GS-9 and above; Automated Collection Branch Unit Managers, GS-11 and above; Customer Service Collection Branch Managers, GS-10 and above; and Tax Resolution Representatives, GS-9 and above.

5.18.2.2.1  (06-01-2010)
Research Criteria for IRC 6020(b) Processing

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5.18.2.2.2  (06-01-2010)
Basis of Tax for 6020(b) Modules

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Figure 5.18.2-1

      ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
        ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
        ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
         
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
        ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
        ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 5.18.2-2

    ≡
    ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
     
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

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

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    ≡ ≡ ≡

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 5.18.2-3

    ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡      
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

5.18.2.3  (01-01-2008)
Logistics of 6020(b) Processing

  1. Process a return under the provisions of IRC 6020(b) for Business Master File (BMF) returns if:

    • The entity appears to be liable for the return

    • The person required to file the return does not file it

    • Attempts to secure the returns fail

  2. The following BMF returns with corresponding Master File Tax (MFT) codes are the returns usually prepared under the provisions of IRC 6020(b):

    TAX RETURN RETURN TITLE RETURN MFT
    Form 720 Quarterly Federal Excise Tax Return 03
    Form 940 Employer's Annual Federal Unemployment Tax Return 10
    Form 941 Employer's Quarterly Federal Tax Return 01
    Form 943 Employer's Annual Return for Agricultural Employees 11
    Form 1065 U.S. Partnership Return of Income 06
    Form 2290 Federal Use Tax Return on Highway Motor Vehicles 60
    Form 944 Employer's Annual Federal Tax Return 14

    Note:

    The A6020(b) program at the Ogden Campus processes Forms 941/943/944/ 940 for three (3) tax years prior to current year (2004, 2005, 2006 currently; 2005, 2006, 2007 starting in January 2008).

  3. Do NOT propose assessments on cases with the following characteristics. IRM 5.18.2.2.1. paragraph (1).

5.18.2.3.1  (01-01-2008)
Federal and State Information Sharing Agreements

  1. There are Federal and state information sharing agreements in existence, requiring sharing of information regarding 6020(b) assessments. Agreements usually require the sharing of information as tax returns are assessed. Be careful of unauthorized taxpayer information disclosures which will occur if you give more information than the Federal and state agreement specifies to share with the taxpayers' state of residence.

  2. If these agreements are active maintain the integrity of the agreement by:

    • Sharing weekly information regarding return assessments using information from the A6020(b) system

    • Providing information specified in the agreement and requested by your federal/state coordinator

    Note:

    There is currently no state information being used in A6020(b) processing.

5.18.2.3.2  (01-01-2008)
A6020(b) Centralization

  1. The Ogden Campus Collections Operation is the centralization point for the Automated 6020(b) process. The automated program will be the national standard with manual procedures as a back-up in case of hardware and/or software problems. The A6020(b) system resides at the Detroit Computing Center along with the Applications Support. For current process flow see Exhibit 5.18.2-1.

5.18.2.3.3  (01-01-2008)
System Security

  1. The A6020(b) system is a web-based application accessed through the Internet. There are primarily five (6) levels of access developed initially based on user profile and can be added/revised/updated on an " as needed" basis. These levels are as follows:

    • customer

    • unit manager

    • unit lead

    • tax examiner

    • guest (read only)

    • guest/PAS review (read only)

  2. A6020(b) users are added/deleted through the Online 5081 process. There are three (3) levels of approval needed to grant/deny access. They are:

    1. unit manager

    2. application

    3. systems

  3. Users are trained in how to fulfill their security responsibilities. Behavior consistent with the rules of the system and periodic refresher training are required for continued access to the system. This training is provided by the Collections Operation at the Ogden campus where the A6020(b) program is centralized. These Rules of Behavior are part of the Online 5081 system/process and users are required to sign these forms prior to being granted logical access to the system.

  4. Audit trails are maintained in the application. All status code changes made to a module are stored as a history record, in the system along with the date and user who made the change. These audit trails are reviewed on an "as needed" basis.

  5. An approved Business/Disaster Recovery Plan and Service Level Agreement (SLA) can be provided upon request.

5.18.2.3.4  (01-01-2008)
A6020(b) Case Selection

  1. Cases are selected by the Inventory Delivery System (IDS) based on established criteria. These cases are identified by Tsign AO008600. Inventory for A6020(b) is then extracted from IDRS and uploaded to the A6020(b) system. The A6020(b) process/system also accepts referrals, via TSIGN, when "stand alone" TDIs are identified and are eligible for A6020(b) processing.

    Note:

    This IRM cannot be all inclusive for resources to be researched during the A6020(b) program processing. These resources may include IRM 3, Submission Processing, IRM 3.13, Entity Procedures, IRM 5.19, Balance Due, IRM 20, Penalty and Interest, and IRM 21, Customer Accounts Services. Refer to the SERP website for accessing appropriate IRMs.

5.18.2.3.5  (01-01-2008)
Organization, Function, and Program (OFP) Codes for A6020(b)

  1. Ogden Campus Collections Operation is responsible for working the A6020(b) inventory. New closing codes have been established to reflect this. Closing code 08 identifies unagreed cases and closing code 09 identifies agreed cases. Systemic action, e.g., receipts and closures, on A6020(b) cases is reported under OFP code 62900. Subfunction codes have been established as follows:

    • 62901 (Taxpayer correspondence responses)

    • 62902 (Taxpayer telephone responses)

  2. A6020(b) Reconsideration closures are reported under OFP 62930.

5.18.2.3.6  (01-01-2008)
A6020(b) Inventory

  1. A download tape from IDRS containing A6020(b) eligible cases is produced weekly and uploaded to the A6020(b) stand-alone system. Case selection based on established criteria is done by the Inventory Delivery System (IDS). Delinquent periods must be within three (3) years prior to current calendar year and must contain either a credit on the delinquent period or a "last return amount" (LRA) within established thresholds. IDS also uses this same criteria to assign cases to A6020(b) during its annual queue "clean-up" The incoming data is then directed, based on the characteristics of the case as identified in the A6020(b) load criteria, to specific statuses. The weekly mailout is prioritized by " combo" accounts and those having the largest proposed assessed amount. Once initiated into the process, the case will be systemically moved, through a series of statuses having assigned follow-up periods, to completion.

5.18.2.4  (01-01-2008)
A6020(b) Inventory Assignment and Control

  1. Once accounts are Tsigned AO008600 TDI weekend processing then assigns a A6020(b)-ACCT-IND to the account entity. This code has three (3) values:

    • 0 = no 6020(b) activity

    • 1 = 6020(b) activity

    • 2 = associated TDA (combo account needing priority processing)

  2. An A6020(b)-MOD-IND is assigned to any tax period (TXMOD) meeting A6020(b) processing criteria. The 6020B-MOD-IND has two (2) values:

    • 0 = no 6020(b) activity

    • 1 = 6020(b) activity

  3. When these cases upload to the A6020(b) system IDRS generates an "OPENING" record to the A6020(b) system.

  4. During weekend TDI processing if a change occurs on an account assigned to A6020(b), a "REFRESH" and/or "CLOSING " record will be sent to the A6020(b) system to update the module appropriately.

  5. Generation of weekly Letter (L) 1085, see Exhibit 5.18.2-3 , is based on request, via the Electronic File Transfer Utility (EFTU), by the manager and/or lead following an established schedule which is subject to change. Included with the Letter (L) 1085 is the taxpayer appeal rights, Publication 5, see Exhibit 5.18.2-4.

  6. These 1085 ltr packages are printed by the National Print Site West (Ogden) through the Notice Delivery System (NDS).

5.18.2.4.1  (01-01-2008)
A6020(b) Case Characteristics

  1. Cases on A6020(b) will be assigned a status as follows:

    • -L,-Z freeze codes (will be closed via Standardized IDRS Access, SIA, to either Exam or Criminal Investigation)

    • TDA-IND set to 1 (combo case requiring acceleration through the process)

    • -O, -C freeze code (case will be directed to a holding status until freeze is lifted)

  2. If the above characteristics are not present, incoming cases from IDRS will be assigned a status indicating ready for mailout or needs additional manual perfecting.

5.18.2.4.2  (01-01-2008)
A6020(b) Status Codes

  1. The A6020(b) inventory has several different status codes, see Exhibit 5.18.2-2, used for assignment depending on:

    • Characteristics of the case

    • Progression of the case within the automated system

5.18.2.4.3  (01-01-2008)
A6020(b) Reports and Reject and Error Listings

  1. The A6020(b) system generates the following weekly reports for inventory management:

    • Management Status Report shows the number of modules in each status on the A6020(b) system

    • Weekly Summary Report shows weekly receipts, closure (by entity and module count) types, and ending inventory in terms of "started" and "unstarted" inventory (module count only)

  2. The A6020(b) system will reject any entity trying to load from IDRS if the load criteria is insufficient/invalid. The A6020(b) system will assign to an error status any module having insufficient/invalid criteria. Listed below are the reject and error categories, along with status, description of reject/error.

    Note:

    Those with an * are conditions addressed systemically.

    LISTING STATUS EXPLANATION
    REJECT 850/860* Employment codes F, T, G; 6020b-ACCT-IND not 0, 1, 2; invalid TDA indicator; account to be sent weekly via "tickler" file to IDS for reassignment
    ERROR 700 Invalid TDI status code; see 5.18.2.4.4
    ERROR 701* Invalid 6020b Module Indicator; TBD
    ERROR 702* Transaction code not numeric; TBD
    ERROR 703* Invalid tax period date; TBD
    ERROR 704* Invalid transaction code 592; TBD
    ERROR 705 Invalid transaction code 594; see table in 5.18.2.4.4

5.18.2.4.4  (01-01-2008)
A6020(b) Cases Requiring Manual Perfection

  1. Statuses listed in the table below require manual perfection. The table identifies the status, definition, and guidelines for resolution.

    Status Definition Actions to Resolve
    003, 004 Cases requiring manual research and perfection Status 003 is a combo case and takes precedence over other cases requiring manual perfection; must be worked the same week it is assigned to status 003 or as soon as possible; check IDRS for TDA/s (stat 22/24/26); if balance/s owing on TDA/s (regardless of MFT) totals $1500 or more move all modules to status 800; if balance/s owing on TDA/s (regardless of MFTs) totals less than $1500 perfect all TDIs and move to status 020 for mailout.

    Note:

    When perfected it must be moved to status 020 rather than 019 to expedite mailing of the 1085 ltr package.

    Status 004 cases cannot be worked until the freeze condition has been removed. Both 003/004 cases are worked following status 001 procedures.
    001 Cases requiring manual research and perfection

    1. If MFT 10 (Form 940) use same year Form 941/943/944 wages on the A6020(b) system ORtotal of Form 941 wages as shown on CFOL command code BMFOLW OR 943/944 wages on BMFOLU. Figure 5.18.2-2. ORa combination of both to determine the "base wage" ; if no data found input TC597 CC08 on IDRS. IDRS will subsequently update A6020(b).

    2. If MFT 01, 11, or 14 (Forms 941/943/944) check first for Last Return Amount (LRA) data on the A6020(b) system. If no LRA data on the A6020(b) system check IDRS CFOL command code BMFOL (I and R) for LRA data needed to determine "base wage" .

    3. If LRA is found and is prior to delinquent tax period an inflation factor must be added to the "base wage" . If the LRA is subsequent to the delinquent tax period no inflation factor is required, IRM 5.18.2.2.2. paragraph (5) and Figure 5.18.2-2

      Note:

      The A6020(b) system automatically computes the inflation factor on automated cases.

    4. Input the "base wage" amount to the A6020(b) system and change the status to 019; if module is to be prioritized move to status 020 and input appropriate letter date.

    5. If no wages found and there is no credit on the TDI module input TC597 CC08 on IDRS; IDRS will subsequently update A6020(b).

    6. If there is both a credit and LRA liability for the module determine if a refund situation will occur. IRM 5.18.2.2.2. paragraph (1).

    7. Use credit for determining "base wage" ONLYif there is no LRA liability or if there is LRA data but it results in a refund situation. Figure 5.18.2-1.

    700 Invalid TDI status code Check IDRS; if TDI 1 (OPEN) manually perfect and move to status 019; if TDI 2 (CLOSED) move to appropriate status based on closure type
    705 Invalid transaction code identified during load If TC150 has posted move to status 096 if module was in prior status 021; if no prior status 021 move to 090; if TC594 was within 15 weeks of current date take no action, if TC594 older than 15 weeks input TC592 and manually perfect to 019 or close on IDRS

5.18.2.4.5  (01-01-2008)
Clerical Duties

  1. Process weekly A6020(b) default returns using the following procedures:

    • code return with TC599-08 along left side of return

    • code return with CCC 4 at bottom center of return

    • stamp with manager or other designated party signature

    • if necessary stamp 6020(b) statement on bottom of return; highlight statement in yellow

    • stamp the IRS received date using current date, input time under 790–62900, route to batching on Form 12634 (green router) making sure router does not cover entity portion of return

      Note:

      Starting in 2008 A6020(b) default assessments will be electronically posted to IDRS. The paper returns with signature and DLNs will be routed to files.

  2. Batch incoming taxpayer correspondence and undeliverable mail per local procedures

  3. Process undeliverable mailusing the following procedures:

    • work undeliverables under OPF 790–62907

    • stamp each "D" ed envelope (case) with employee IDRS number; write the EIN, MFTs, and tax periods on the envelope and what actions you took on the case

    • check ENMOD to verify business name and address

    • check filing requirements; compare open filing requirements on ENMOD with history of forms filed on BMFOLI(status 06 may be an indication of posted TC590/591); if the filing requirement is not open but the taxpayer previously filed that type of return pull the return up on BMFOLR to see if the return was a "F" (final) return; if the final return is for a period prior to the delinquent period input appropriate 59X using closing code 08

      Note:

      EXAMPLE...If the taxpayer files a final return a F would be present on the Alpha Condition Code line on BMFOLR. On the taxpayer's account the 941 is open but on BMFOLI there are 941s, 1120s, and 940s. The 2006 940 and 1120 returns have Fs in the Alpha condition Code field. The taxpayer 941s filed for 200603 and 200606 were not final returns. The amounts added together match the amount on the 940. You would input a TC591–08 on the 941 for 200609. EXCEPTION...If the taxpayer continues to file other returns after a final return then liability cannot be determined and we would continue the A6020(b) process to secure the delinquent return. Also check BMFOLTfor a TC591 that indicates the taxpayer is no longer required to file. Address all other applicable MFTs such as MFT 10 (Form 940)...EXAMPLE...FR for 941 is open but BMFOLI shows both 941 and 940. 940 for 2005 has a TC591 so taxpayer would not be liable for 941s for 2005; input TC591-08 on 941 for 200503.

    • check TXMODA on each module being worked to verify there is not a return or other satisfying transaction on the module

  4. Research for a new address by checking the following:

    • envelope of the undelivered 1085 ltr

    • ENMOD for updated address

    • ENMOD/INOLES for x-reference/s and possible new address

    • NAMEE/NAMEI for another address for TIN on undelivered mail

    • if a new addressis found history ENMOD using CC ACTON (10 characters) and:

    IF AND THEN
    ENMOD was updated with a new address ...the address has already been changed ..send the 1085 ltr in an envelope to the new address; history TXMOD (1085NUADRS); update modules listed on 1085 to status 050 on A6020(b) unless already in status 023 or later.
    ENMOD was not updated with a new address ...there is a location address different from the mailing address ...using ENREQ update the mailing address to match the location address; send the 1085 ltr in an envelope to the new address; history TXMOD and update A6020(b) as above
    A new address was found on x-reference TIN, envelope, or NAMEE/NAMEI ...the current ENMOD address does not match address found ...send 2475C letter to the new address with the 1085 ltre as an enclosure; do not change the ENMOD address; history TXMOD and ypdate A6020(b) as above

    Note:

    When sending 2475C ltr put a "Y" in the ENC> field, update the STR> field with the new address, input the following paragraphs in the PAR> field , BCFLOSUV, input he city/state/zip in the > field (Odgen/UT/84405). On the following line you may input the paragraph fill-ins as follows or type the information in the CES tool (Cntrl F7)....02EIN]03Form]14MMDDYYYY]20our office]21801–620–4647]226:00am]331085 letter w/envelope][ ] For the date in 14 put 30 days from the current date. On the IDRS Letter Enclosure screen type "CRX" in the TO: field then " 1085" after the word FORM 5703.

  5. If no new address found:

    IF AND THEN
    The 6020b default return has not posted and there is not a TC599-08 on the account   ...input TC593-08 to to the earliest non-filed return module for each 6020b MFT; history TXMOD (1085UNDEL).

    Note:

    Ift there is a credit input TC971-296 using REQ77; monitor 1 week for pending TC971 and input TC593-08, refer to IRM 5.19.2.6.8, Credit Balance Cases

    The 6020b default return has posted to the account   ...input TC530-03 using REQ77, input TC593-08 as above; if TC150 is pending TC530 can be input with a delay cycle
    The 6020b default return has not posted to the account ...there is a TC599-08 on the account or it is pending orA6020(b) is in status 023 ...control the module on IDRS to yourself using ACTON, C#, MONITOR,M,TDIB; input TC593-08 as above; history TXMOD (1085 UNDEL), when TC150 is pending input the TC530-03 with a delay cycle
    If the taxpayer's return is posted to the account ...no new address is found ..verify that A6020(b) is on status 099, "D" undel
    If 2475C or 2nd 1085 ltr is returned undelivered ...no new address is found ...if 6020b default return has not posted input TC593-08 on TXMOD; if 6020b default return has posted input TC530-03 using REQ77 to each module; history TXMOD (1085 or 2475CUNDEL)ji

  6. If the undelivered 1085 ltr was sent to the POA address , do not update A6020(b), and:

    IF AND THEN
    There is no new POA ...only the POA copy of the 1085 ltr was returned ...history TXMOD (1085UDLPOA)
    There is a new POA address ...same as above ...send the 1085 ltr to the POA in a white envelope

    Note:

    If both the taxpayer and POA copies are returned follow the regular instructions for the taxpayer portion

  7. If the taxpayer is deceased:

    IF THEN
    It is a sole proprietorship ...remove any 6020b assessments posted after the date of death; input TC530-08 on any balance due modules on the account
    It is a corporation or partnership ...treat as a normal undeliverable and follow the procedures above

  8. ProcessForms 5604 using the following procedures:

    IF THEN
    A RO prepared 6020b return is received ...attach Form/s 5604 and any 6020b ltr/s to back of RO return; check IDRS for a TC599-63 and input if necessary; check for the earliest IRS received date and edit with the current date if necessary; circle out extra subsequent dates; code return with CCC 4; check for RO signature and if none refer to local procedures;check for IRS 6020b statement and highlight in yellow; if none stamp with such; notate"leave attached to return" on bottom center of all attachments behind the return; input time under 790-62900; when complete route to batching on Form 12634 (green router)
    Form 5604 or RO 1085 ltr received without a return ...check TXMOD for posted return; print TXMOD, highlight the DLN of the 6020n TC150, write attached, send to files; if return has not posted hold the paperwork for monitoring (up to 8 weeks from the date of the TC599-63); if the return has not posted "D" and destroy the paperwork

5.18.2.4.6  (01-01-2008)
Tax Technician Duties

  1. work A6020(b) status and/or error listings see IRM 5.18.2.4.4 in priority order as designated by management

  2. if a TDI Researchor AM-18 transcript is received because a TC599-08 posted with no corresponding TC150, research and take the following actions:

    IF AND THEN
    Research indicates the TC594/599 was input in error taxpayer is not liable for this period only input a TC590 cc08

    Note:

    If a credit balance remains on the account,you must follow all procedures in 5.19.2.6.8 " Credit Balance Cases" before closing the module with a TC590, 591, 593, 597, or 598

      taxpayer will not be liable for future periods input TC591 cc08

    Note:

    If a credit balance remains on the account, you must follow all procedures in 5.19.2.6.8 " Credit Balance Cases" before closing the module with a TC 590, 591, 593,597,598

    Research indicates the return posted to an incorrect tax period or EIN   Back-off the TC150 liability on the incorrect tax period. Prepare a return using information on the A6020(b) system to process to correct tax period. Edit return with TC599-08, CCC4, and IRS rec'd date stamp. Input TC599 cc08 to prevent additional transcript/s from generating
    Unable to locate where default 6020(b) return posted TC599 cc08 posted more than 12 weeks ago with no TC150 on account

    Note:

    12 week timeframe subject to change per local management discretion

    		 Prepare a return using information from the A6020(b) system to process to correct tax period. Edit return with TC599-08, CCC4, and IRS rec'd date stamp. Input TC599-08 to prevent additional transcript/s from generating.

    Note:

    Any return prepared with A6020(b) information should contain the statement "this return was prepared and signed under the authority of Section 6020(b) of the Internal Revenue Code" and have the 6020(b) manager's signature on it

  3. taxpayers will respond upon receipt of the L-1085 package; if prior to default assessment the following procedures should be followed:

    IF THEN
    Taxpayer states no employees during the period in question Input TC590-08 to IDRS on each module not liable; address credit/s per (5) below
    Taxpayer states business is closed Input TC591-08 to IDRS on the earliest period closed; close all necessary filing requirements; input business closing date using CC ENMOD; address credit/s per (5) below
    Taxpayer submits a return Input TC 599-09, code, and prepare for processing

    Note:

    If a previous TC599 (CC other than 08) is present or pending within the last 10 weeks and no return is posted or pending do not process the taxpayer's return received; follow instructions in next box

    Taxpayer submits possible second copy of return (see note in above box) Input TC594-33, print your input screen from IDRS and notate "Source Doc" , stamp your employee number and date of input, attach return behind the print to be filed in the source doc
    Taxpayer correspondence is insufficient Contact taxpayer per telephone (do phone look-up if necessary) to clarify the information; if no telephone contact can be made continue with A6020(b) processing; send letter to taxpayer
    Taxpayer states return will be filed at a later date History the module/s on TXMOD with the date taxpayer will file
    Taxpayer states return was filed under a different Employer Identification Number (EIN) Verify the return/s have been filed under the new EIN; if the taxpayer filed only for the tax periods addressed on the 1085 ltr input TC590-08 on those modules; if the EIN on the 1085 ltr is no longer liable input TC591-08 to the earliest not liable period to close the filing requirements
    Response indicates the return may have posted to the wrong period and/or EIN Attempt to secure the return per a call to the taxpayer; if a copy cannot be secured order the original using CC ESTAB; if the original cannot be found prepare a "dummy" using the information on BRTVU/BMFOLR; if the tax period is not statute expired/imminent input TC291 for the entire liability and send the return for processing on the correct EIN; if the return is statute expired follow statute procedures for account transfers in (5) below
    Faxed return received Accept and process as applicable
    Remittance received with a return Take a TXMOD print of the period it should post to, attach the check to the print and give to unit lead or manager; follow above guidelines for processing the return
    Taxpayer indicates possible identify theft Input TC591-08 (and a total abatement if response addresses a reconsideration); refer the case to the local fraud coordinator for potential follow-up action
    1085 ltr is returned opened and indicating wrong taxpayer Treat as a disclosure issue and follow disclosure procedures in IRM 11.3

  4. process taxpayer responses received subsequent to a default assessment as follows:

    IF THEN
    Taxpayer states no employees during the period/s in question Input TC 590/591-08 to IDRS depending on the response; address all filing requirements if business is closed; input closing date on ENMOD; input TC291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18 and source doc (telephone contact sheet and/or taxpayer correspondence) only the last adjustment input, reference the source doc other adjusted periods; use appropriate Item Reference Numbers, hold codes, and priority codes as needed; input a STAUP for any module in status 21 or 58, if in statuses 22/24/26 input TC470 no cc
    Taxpayer states a partial liability Tell taxpayer to file return and the adjustment will be made
    Taxpayer submits a return Input TC599-09, code, and prepare return for processing if a partial adjustment is warranted cc (see note); if return is $.00 liability input TC599-09, TC971 action code 012, and TC291 adjustment using figures from TXMOD to remove all tax and wages; use blocking series 18; use appropriate Item Reference Numbers, hold codes, and priority codes as needed; input a STAUP for any module in status 21 or 58; input TC470 no cc if statuses 22/24/26

    Note:

    All returns received subsequent to a default assessment requiring a partial adjustment must be forwarded for processing as TC976s until further notice

    Taxpayer submits a return; a TC599 and TC976 are posted to TXMOD with no subsequentTC29X Research the account using CC BRTVU to see if the TC976 is the same return received from the taxpayer; if a true copy "D" the return and Accounts Management (AM) will adjust to match the taxpayers figures; if not a true copy and AM has an open control route to AM; if not a true copy and no open AM control input TC599-09 and route return for processing
    Taxpayer submits return; TC599 and TC976 are present with asubsequent TC29X Compare the figures posted to IDRS; if figures match " D" the return; if BRTVU shows the adjustment was done incorrectly route to AM to correct; if the return is different from that on BRTVU/TXMOD input TC599-09 and route for processing

    Note:

    When working reprocessable cases ensure you work only those module/s with a 6020b issue; other modules with EIN issues are to be referred to AM for resolution

    1085 ltr is returned opened and indicating wrong taxpayer Treat as a disclosure issue and follow disclosure procedures in IRM 11.3

  5. Credit issues such as taxpayer indication of misapplied payments or input of TCs 590/591/593/597 are to be addressed by following credit balance procedures as found in IRM 5.19.2.6.8

    Note:

    The Statute of Limitations must be considered on all modules. Claims for credit or refund of pre-paid and post-paid credits must be filed within 3 years of the filed return date or 2 years from the payment date, whichever is later. If no return was filed by the taxpayer, the claim for credit or refund must be filed within 2 years from the date the tax was paid. Pre-paid credits are those that were paid on or before the due date of the return and are considered paid on the due date of the return. Post-paid credits are those that were paid after the due date of the return and are considered paid on the date the payment was made. Even if a claim is timely, the taxpayer may not be entitled to a refund, as limitations on the amount of the refund may apply. For more information see IRM 4.23.8.9, IRM 25.6.6.6.3.2, and IRM 25.6.6.6.3.1. Example of allowable pre-paid credit would be 01 200512 (due 1/31/2006), payment dated 1/15/2006, taxpayer return dated 1/15/2008 (refund allowed as tax was paid on/before due date of return and taxpayer return/claim filed timely); example allowing refund of a post-paid credit would be 01 200512 (due 1/31/2006), payment dated 2/15/2006, taxpayer return dated 1/15/2008 (refund allowed as tax was paid after due date of return and return/claim filed timely). Follow procedures in the tables below when considering credit cases.

  6. Default return posted, statute year, payment more than 2 years old:

    IF AND THEN
    TP states no liability Filed no return or Form 843 Remove 6020b assessment using hold code 4, input TC59X-08,input TC971-296; address credit as follows:

    • if TP call give information from 112C ltr for filing a refund claim & tell them statute has expired but they can file a .00 return to pursue credit further

    • if TP correspondence send 112C ltr and include that a .00 return can be filed to pursue credit further
    TP states no liability Sends a $.00 return Process the return using the appropriate procedures
    TP states no liability Sends a Form 843 Remove 6020b assessment using hold code 4: input TC59X-08:, input TC971-AC296; route to AM for processing

  7. Non-Statute year, payment more than 2 years old:

    If And Then
    TP states no liability With or without Form 843 Inform TP of available credit if return is filed (telephone or 112C ltr); remove 6020b assessment using hold code 4;input TC59X-08; input TC971-296
    TP states no liability Sends a $.00 return Process the return using the appropriate procedures. The available credit will refund once the return posts.

  8. Non-Statute year and subsequent payment is less than 2 years old:

    If And Then
    Tp states no liability Without a return but with a Form 843 or written correspondence Remove 6020b assessment using hold code 0, input TC59X-08, use claim as source doc. Credit will refund once the return posts.
    TP states no liability Sends a $.00 return Process the return using the appropriate procedures. Credit will refund once the return posts.

  9. No Default return posted:

    If And Then
    TP states no liability Filed no return or Form 843 Input TC59X-08 and TC971-296.

    • if TP call give information from 112C ltr for filing a refund claim & tell them statute has expired but they can file a .00 return to pursue credit further

    • if TP correspondence send 112C ltr and include that a .00 return can be filed to pursue credit further
    TP states no liability Sends a $.00 return Process the return using the appropriate procedures.
    TP states no liability Sends a Form 843 Input TC59X-08 and TC971-296. Send Form 843 to Accounts Management for processing.

  10. Non-Statute year and subsequent payment is more than 2 years old:

    If And Then
    TP states no liability With/without Form 843 Inform TP of available credit if return is filed (telephone or LTR 112C), input TC 59X-08 and TC971-296.
    TP states no liablity Sends a $.00 return Process the return using the appropriate procedures. Credit will refund once the returns posts.

  11. Non-Statute year and subsequent payment is less than 2 years old:

    If And Then
    TP states no liability Without a return but with a signed written statement Prepare a $.00 dummy return and attach statement. Input TC599-09. Credit will refund when return posts.
    TP states no liability Without a return but with Form 843 Input TC59X-08 and TC971-296. Send Form 843 to Accounts Management for processing.
    TP states no liability Sends a $.00 return Process the return using the appropriate procedures. Credit will refunf once the return posts.

Exhibit 5.18.2-1 
A6020(b) Processing Flowchart

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Exhibit 5.18.2-2 
Status Codes

Status Code Status Name
001 INSUFFICIENT DATA FOR SYSTEMIC CALCULATION
002 AUTOMATED CASE
003 COMBO CASE, EXPEDITE
004 HOLDING FOR -O, -C FREEZES
005 RESERVED
006 RESERVED
007 RESERVED
008* CASES WITH -L FREEZE
009* CASES WITH -Z FREEZE
010 HOLD FOR SELECTED INTERNAT'L CASES
011 RESERVED
019 READY FOR MAIL-OUT
020 1085 PACKAGE ORDERED
021 1085 PACKAGE PRINTED
022 RESERVED
023* DEFAULT RETURN ORDERED
024 RESERVED
025 DEFAULT RETURN SENT FOR PROCESSING
026 RESERVED
045 RESERVED
050 TEMP HOLD FOR UNDLS W/NEW ADDRESS
060 RESERVED
090 CLOSED OTHER ACTION/AREA
091 RESERVED
092 RESERVED
093 NON-WORKABLES
094 TC591-08 NO LIABILITY DETERMINATION
095 TC590-08 NO LIABILITY DETERMINATION
096 TC150, TC610, OR TC599-09 SECURED RETURN
097 TC593-08 UNDELIVERABLE
098 TC599-08 DEFAULT ASSESSMENT
099 CASE CLOSED, 1 YEAR
100 CASE CLOSED, 2 YEARS
101 CASE CLOSED, READY FOR ACHIVING
700 ERROR-INVALID TDI STATUS CODE
701 ERROR-INVALID 6020b MODULE INDICATOR
702 ERROR-TRANSACTION CODE NOT NUMERIC
703 ERROR-INVALID TAX PERIOD DATE
704 ERROR-INVALID TRANSACTION CODE 592
705 ERROR-INVALID TRANSACTION CODE 594
800 REJECT-ACCOUNT TO BE REASSIGNED
850** B1 TICKLER CASES (TDIs only needing reassignment)
860** B2 TICKLER CASES (Combo w/TDAs needing reassignment
*status produces output file to SIA for posting to IDRS
**status produces output file to IDS for Tsign change

Exhibit 5.18.2-3 
A6020(b) 1085 Letter

INTERNAL REVENUE SERVICE SB/SE Internal Revenue Service Ogden, UT 84201-0048 Department of the Treasury Employer Identification Number: Forms: Tax Period(s) Ended:
Dear Person to Contact: A6020(b) Representative Contact Telephone Number: 801-620-4647 (6am - 4pm Mountain Time) Fax Number: 801-620-4750
We have reviewed your tax records and found no record of you filing the tax returns identified above. We believe you are liable and have prepared a tax return for the tax period/s in question. If you agree that the tax liability shown is correct, please sign each form and return it to us. If you do not agree with our findings, you have 45 days (90 days if this letter is addressed outside the United States) to do one of the following:
1. Prepare and sign tax returns which you believe show your correct tax liability and return them to us (if you choose to file a Form 940 claiming a reduced rate of assessment you must attach a copy of the state certification showing the amount of contributions paid or the return may be processed at the standard unemployment tax rate of 6.2%); or
2. Mail us any additional information you would like us to consider; or
3. Request a conference.
WHAT WILL HAPPEN IF YOU DO NOT RESPOND TO THIS LETTER? The Internal Revenue Code Section 6020(b) gives us the authority to prepare and file tax returns on your behalf. Therefore, if we do not hear from you within 45 days from the date of this letter (90 days if this letter is addressed to you outside the United States), we will process the enclosed tax returns that we have prepared for you. You will then be billed for the amount of tax due, plus any additional penalties and interest. You need to check your records to ensure that all tax returns you are liable for have been filed.
If you have any question and want to call us, please use the telephone number shown above and a representative will be able to help you. Since there will be a long distance charge to you if you are beyond the immediate dialing area of the service center, you may prefer to write to us. If you write, please include your telephone number and the most convenient time to call you in case we need more information. Your appeal rights are explained in the enclosed Publication 5.
  Sincerely yours, Collection Operations Manager
Enclosures: Completed Tax Returns Appeal Rights (Publication 5) Envelope Letter 1085 (A6020(b)) (Rev. 02-05)

Exhibit 5.18.2-4 
Pub 5

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