5.19.2  Individual Master File (IMF) Return Delinquency

Manual Transmittal

January 16, 2015

Purpose

(1) This transmits revised IRM 5.19.2, Liability Collection,Return Delinquency incorporating updated procedures and clarifications since the last revision dated September 11, 2012. All changes revised since last revision are listed in the Nature of Changes below. IPU changes that posted to SERP since the last revision are documented with date and IPU number assigned when posted to SERP. This version includes deletion of BMF RD Policy and Procedure which has changed the tridoc numbering. All BMF RD Policy and Procedure has been moved to IRM 5.19.22, Business Master File (BMF) Return Delinquency. IPU changes may not reflect the new numbering. The IRM 5.19.2, Individual Master File (IMF) Return Delinquency has been renamed and will contain only IMF RD Policy and Procedure.

Material Changes

(1) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.1.2 - Remove paragraph (2) as the information is discussed in the following chart.

(2) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.4.5.3 - Added Note to clarify procedures.

(3) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.4.5.12 - Clarifications throughout on AMS comments and input procedures.

(4) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.7 - updated time frames throughout this section.

(5) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5 - Updated ACS time frames for XX through out this entire section.

(6) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.4.5.4 - Added ACS history for paragraph (11) chart.

(7) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.4.5.12 - Added appropriate ACS histories throughout.

(8) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.7.1 - Update ACS history code in paragraph (2) chart.

(9) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.1.3 - Clarified instructions and added note to paragraph (1).

(10) IPU 12U1728 issued 10-15-2012 IRM 5.19.2.5.9.3 - Revised wording in paragraph (3) chart to clarify TC 592 input.

(11) IPU 12U1728 issued 10-15-2012 IRM 5.19.2 - Throughout entire IRM updated W&I two phone calls and SBSE one phone call to "attempt to call the taxpayer" .

(12) IPU 12U1801 issued 11-06-2012 IRM 5.19.2.5.4.5.7 - Removed transcript and replaced with Wage & Income documents.

(13) IPU 12U1801 issued 11-06-2012 IRM 5.19.2.5.8.2(8) - Added link.

(14) IPU 12U1801 issued 11-06-2012 IRM 5.19.2.5.4.5.12(8)- Correction made to ACS inventory.

(15) IPU 12U1801 issued 11-06-2012 IRM 5.19.2.7.13 - Added note to (2) and (5) dealing with ACS inventory and locator research.

(16) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.4.5.12(8) - Clarification for unsigned returns in If and Then chart.

(17) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.4.5.4(13) - Corrected link for ACSS.

(18) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4 - BMF FCC Clarification.

(19) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.5 - BMF FCC Clarification.

(20) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.6 - BMF FCC Clarification.

(21) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.10 - BMF FCC Clarification.

(22) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.16 - BMF FCC Clarification.

(23) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.16.1 - BMF FCC Clarification.

(24) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.16.2 - BMF FCC Clarification.

(25) IPU 12U1905 issued 12-05-2012 IRM 5.19.2.5.5.4.16.4 - BMF FCC Clarification.

(26) IPU 13U0107 issued 01-10-2013 IPU IRM 5.19.2.7.3 - Removed paragraph 4, expedite follow up paragraph.

(27) IPU 13U0107 issued 01-10-2013 IPU IRM 5.19.2.5.4.5.6 - Clarified (14) ACS/ACSS procedures in If and Then box.

(28) IPU 13U0107 issued 01-10-2013 IPU IRM 5.19.2.5.4.3 - Added information on ACS/ASFR international case assignment.

(29) IPU 13U0107 issued 01-10-2013 IPU IRM 5.19.2.1.2 - Changed POA contact time from 5:00 to 6:00.

(30) IPU 13U0107 issued 01-10-2013 IPU IRM 5.19.2.6 - Corrected links.

(31) IPU Through out entire IRM - increased TC 59X CC to three digits.

(32) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.9(6) - updated new CIO fax number.

(33) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.4.5.7 - updated incarcerated wording

(34) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.3.1 - updated input for TC 474.

(35) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.1.1 - included information on CP 515.

(36) IPU 13U0445 issued 03-04-2013 IRM 5.19.2 - Throughout IRM correct ACS inventory to address addition of new three digit CC.

(37) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.4.5.12 - Correction to ACS procedures.

(38) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.3 - Corrected fax number and IRM links.

(39) IPU 13U0445 issued 03-04-2013 IRM 5.19.2.5.8.3 - Correcting IRM link.

(40) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.1.1(7)(8)(9) - Procedure clarification on BMF notice delays.

(41) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.4.5.9 - ACS history code update.

(42) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.4.5.12(3) - Include CP 518 to unsigned return procedures.

(43) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.9.3 - Procedure clarification on Transcript TC594/TC599 processing.

(44) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.11.3(7) - Procedure clarification on IMF OLNR process.

(45) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4.10(3) - Form 944/941 procedure changes.

(46) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4.16.4(7) - Form 944 procedure changes.

(47) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4.16.2(7) - Form 941 procedure changes.

(48) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4.6(7) - AM employee response procedure clarification.

(49) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4.10(5) - Procedure clarification on the use of CC FRM49 BB.

(50) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.1.1 - Procedure clarification on the use of CC FRM49 BB.

(51) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.5.4(2) - Procedure clarification on the use of the CC FRM49 BB.

(52) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.8.4(2)(3) - Credit Transcript procedure clarification.

(53) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.4.5.12(9) - IA procedure clarification

(54) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.1.3(5) - Update IRM links.

(55) IPU 13U0812 issued 04-26-2013 IRM 5.19.2.5.4.5(1) - Update link and title for Policy P-6-12.

(56) IPU 13U0812 issued 04-26-2013 Exhibit 5.19.2-1 - Update link and title for Policy P-6-12.

(57) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.5.4.5.4(9) - Added Note as a reminder to ACS to encourage faxing completed returns.

(58) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.5.9.3(3) - Clarify Transcript AMS Documentation.

(59) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.3(1) - Clarification provided for areas required to do manual creations.

(60) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.5.4.5.12(4) - Added routing procedures for ASFR.

(61) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.5.4.5.12(8) - Clarification on IRS receive date.

(62) IPU 13U1161 issued 06-28-2013 IRM 5.19.2.5.5.4.10(5) - Clarification on IRS receive date.

(63) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.7.13 - Change 6 months to 12 months.

(64) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.6 - Updated link.

(65) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.1 - Removal of telephone contact when closing a case and no information is needed from the taxpayer.

(66) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.3 - Removal of telephone contact when closing a case and no information is needed from the taxpayer.

(67) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.3 - Clarification on identifying copy score.

(68) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.4 - Clarification on faxing returns.

(69) IRM 5.19.2 - Clarification throughout IRM when IA or CNC is requested.

(70) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.5.3 - Clarification for 6020b referrals.

(71) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.3 - Clarification on UTC issues.

(72) IPU 13U1449 issued 09-12-2013 IRM 5.19.2.5.4.5.1 - Clarification on UTC issues.

(73) IPU 13U1604 issued 11-01-2013 IRM 5.19.2.5.5.3 (11) exception added ACS inventory requirements.

(74) IPU 13U1604 issued 11-01-2013 IRM 5.19.2.7.1 (2) (f) updated IRM link and telephone requirements.

(75) IPU 13U1604 issued 11-01-2013 IRM 5.19.2.6 update to change ACS inventory from M and K to O.

(76) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.6 Updated ACS inventory to remove W&I.

(77) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.5.4.5.12 - Changes to IRPTR review and input of TC 595.

(78) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.7.4 - Clarification on paragraph 6.

(79) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.7.1 - Clarification on Telephone contact.

(80) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.7.13 - Corrections to all three Note sections and removal of third party procedures.

(81) IPU 13U1622 issued 11-06-2013 IRM 5.19.2.7.12 - Clarification to Paragraph 3.

(82) IPU 13U1696 issued 11-29-2013 IRM 5.19.2.5.4.3 (6) - Removed IRM reference that is no longer available.

(83) IPU 13U1696 issued 11-29-2013 IRM 5.19.2.5.4.5.1 - Exception added for telephone contact.

(84) IPU 13U1696 issued 11-29-2013 IRM 5.19.2.5.4.5.3 - Exception added for telephone contact.

(85) IPU 13U1696 issued 11-29-2013 IRM 5.19.2.5.4.5.6 - Correction to ACS history.

(86) IPU 13U1696 issued 11-29-2013 IRM 5.19.2.5.4.5.10 - Exception added for telephone contact.

(87) IPU 14U0239 issued 01-31-2014 IRM 5.19.2.5.4.5.4 - Correction to ACS inventory

(88) IPU 14U0239 issued 01-31-2014 IRM 5.19.2.4 - Added new IRM link to paragraph 6 note.

(89) IPU 14U0239 issued 01-31-2014 IRM 5.19.2.5.4.3 - Remove invalid link.

(90) IPU 14U0239 issued 01-31-2014 IRM 5.19.2.5.4.5.12 - Correction to routing ASFR cases in paragraph 4 c.

(91) IPU 14U0431 issued 03-05-2014 IRM 5.19.2.5.5.4.16 - Correction to paragraph 10 that were not updated with IPU 13U0812.

(92) IPU 14U0431 issued 03-05-2014 IRM 5.19.2.1.1 - Add link to paragraph 12.

(93) IPU 14U0431 issued 03-05-2014 IRM 5.19.2.5.4.3 - Clarification on Note in paragraph 2.

(94) IPU 14U0788 issued 04-30-2014 IRM 5.19.2.5.4.5.3, IRM 5.19.2.1.3 and IRM 5.19.2.5.4.5 Removal of Decision RD due to retirement of the tool.

(95) IPU 14U0963 issued 06-04-2014 IRM 5.19.2.5.9.3 - Correction to Then chart that was not corrected when IPU 13U0812 was done.

(96) IPU 14U0963 issued 06-04-2014 IRM 5.19.2.7.9 - Update to address 15 day allowance to file and managerial approval for consistency on HINF cases.

(97) IPU 14U0963 issued 06-04-2014 IRM 5.19.2.5.9 - New fax number for bankruptcy.

(98) IPU 14U1077 issued 06-30-2014 IRM 5.19.2.5.9.3(3) - Clarification on 944/941 and 1120/1120s transcript issues.

(99) IPU 14U1265 issued 08-19-2014 IRM 5.19.2.7.8 and IRM 5.19.2.7.13 change 6 months to 12 months

(100) Not all IPU's will match due to removal of BMF procedures and tridoc renumbering.

(101) The Following Topics are incorporated into this IRM.

1. 5.19.2.1 Removal of all BMF procedures.
2. 5.19.2.1.1 Removal of all BMF procedures. Corrected links and titles.
3. 5.19.2.1.2 Removal of BMF procedures.
4. 5.19.2.1.3 Removal of BMF procedures and updated links and titles.
5. 5.19.2.1.4 Created link to OTC, removed BMF procedures.
6. 5.19.2.1.5 New section" IAT Tools" .
7. 5.19.2.2.2 Removed from this IRM and put in the 5.19.22 BMF RD IRM.
8. 5.19.2.3
  • 4442 referrals added for AM employees

  • Changes to the requirements that are needed for case creation.

9. 5.19.2.3.1
  • Changes to case creation procedures.

  • Old case creation procedures moved to Exhibit 5.19.2-7, Resolving issues with Manual Created RD Modules on IDRS.

10. 5.19.2.5.1 Title Change to IMF Cases Referred.
11. 5.19.2.5.1.1 Removed examples for acceleration to Exhibit 5.19.2-8, Accelerate and/or Delay To TDI Status 03 Examples.
12 5.19.2.5.4.1
  • New section to address Return first read process

  • Renumbering of tridocs in 5.19.2.5.4 section

13. 5.19.2.5.4.3 Removed fraud information and created link to Fraud IRM.
14. 5.19.2.5.4.6
  • Added directions for AM employees to do 4442 referrals when TC 474 needs to be done.

  • Clarification on the use of IRPRTJ to determine taxpayer's liability.

  • Editorial changes throughout.

15. 5.19.2.5.4.6.4 Editorial changes throughout to clarify procedures in an easier format.
16. 5.19.2.5.4.6.6 Editorial changes throughout to clarify procedures in an easier format.
17. 5.19.2.5.4.6.12
  • Editorial changes throughout to clarify procedures in an easier format.

  • Created new subsection 5.19.2.5.4.5.12.1, IMF Response with Original Return ASFR or -L Freeze Present

  • Created new subsection 5.19.2.5.4.5.12.2, IMF Response with Original Return Does not Match CP Notice.

  • Created new subsection 5.19.2.5.4.5.12.3, IMF Response with Original Return Unsigned.

18. 5.19.2.5.4.6.13
  • Editorial changes

  • Removal of the SDSF files

19. 5.19.2.5.4.6.15
  • Added Select Code 89 to title

  • Added SC 89 procedures throughout.

20. 5.19.2.5.5
  • Removal of all BMF RD procedures.

  • 5.19.2.5.6, Return Delinquency TIN and Entity Research, has now become 5.19.2.5.5 and all tridocs renumbered from there down.

  • Editorial changes throughout.

21. 5.19.2.5.6.1.3 BMF RD procedures removed.
22. 5.19.2.5.5.2 New tridoc for Return Delinquency Due to Posting Errors.
23. 5.19.2.5.6
  • New tridoc for Unable to Locate.

  • Editorial changes throughout.

24. 5.19.2.5.6.1 New tridoc for Unable to Contact.
25. 5.19.2.5.6.2 New tridoc for Third Party Contact and Responses.
26. 5.19.2.5.7 New tridoc for Credit Balance Overview.
27. 5.19.2.5.7.1
  • New tridoc for Credit Balance Research Procedures.

  • Editorial changes throughout.

28. 5.19.2.5.7.2
  • New tridoc for Credit Offset or Refund Procedures.

  • Editorial changes throughout.

29. 5.19.2.5.7.3 New tridoc for Levy Payment Procedures.
30. 5.19.2.5.7.4 New tridoc for Input of TC 971 AC 296 - Credit Research Completed.
31. 5.19.2.5.8
  • New tridoc for Transcript Overview.

  • Editorial changes throughout.

32. 5.19.2.5.8.1
  • New tridoc for TDI Research (TC594/599) Transcript - Manual Work Processing.

  • Removal of all BMF procedures.

33. 5.19.2.5.8.2
  • New tridoc Resolving TDI Research (TC594/599) Transcripts.

  • Removal of all BMF Procedures.

34. 5.19.2.5.8.3
  • New Tridoc Accounts Maintenance (AM) 18 Transcripts.

  • Removal of all BMF Procedures.

35. 5.19.2.5.9 New tridoc for Diagnostic-Q Transcripts.
36. 5.19.2.5.9.1 New tridoc for General Procedures for Diagnostic-Q Transcripts.
37. 5.19.2.5.9.2 New tridoc for Diagnostic - Q - Return Delinquency/TDI Numerics.
38. 5.19.2.5.9.2.1 New tridoc for TIF 32 Record.
39. 5.19.2.5.9.2.2
  • New tridoc for Reason Codes.`

  • Removal of BMF procedures.

40. 5.19.2.5.9.2.3 New tridoc for Freeze Codes.
41. 5.19.2.5.9.2.4 New tridoc for MF Status/Module TDI Indicator Comparison.
42. 5.19.2.5.9.2.5 New tridoc for Location Codes.
43. 5.19.2.5.9.2.6 New tridoc for Module Balance.
44. 5.19.2.5.9.2.7 New tridoc for RS 94.
45. 5.19.2.5.9.2.8 New tridoc for DIAG Current.
46. 5.19.2.5.9.2.9 New tridoc for Unpostables.
47. 5.19.2.5.9.2.10 New tridoc for Other Restrictive Conditions.
48. 5.19.2.5.10 New tridoc for Return Delinquency On-Line Notice Review (OLNR) System.
49. 5.19.2.5.10.1
  • New tridoc for Overview of On-Line Notice Review (OLNR) Process.

  • Removal of all BMF procedures.

50 5.19.2.5.10.2
  • New tridoc for On-Line Notice Review (OLNR) General Procedures for IMF.

  • Removal of all BMF procedures.

51. 5.19.2.5.10.3 New tridoc for IMF On-Line Notice Review (OLNR) Procedures.
52. 5.19.2.6 New tridoc for Return Delinquency Identity Theft Procedures.
53. 5.19.2.6.1 New tridoc for Return Delinquency Identity Theft Referral Tracking Process.
54. 5.19.2.7 New tridoc for High Income Non Filer Process - (HINF).
55. 5.19.2.7.1 New tridoc for High Income Nonfiler Processing (HINF).
56. 5.19.2.7.2 New tridoc for HINF - IRP incorrect.
57. 5.19.2.7.3 New tridoc for HINF - Case Processing Procedures.
58. 5.19.2.7.4 New tridoc for HINF - Taxpayer Contact.
59. 5.19.2.7.5 New tridoc for HINF - Taxpayer Claims Not Liable, Refund, or Little or No Tax Due.
60. 5.19.2.7.6 New tridoc for HINF - Deceased Taxpayers.
61. 5.19.2.7.7 New tridoc for HINF - Return Previously Filed.
62. 5.19.2.7.9 New tridoc for HINF - Unable to Locate.
63. 5.19.2.7.9 New tridoc for HINF - Full Compliance.
64. 5.19.2.7.11 New tridoc for HINF - Referrals.
65. 5.19.2.7.12 New tridoc for HINF - Managerial Approvals, Reviews and Controls.
66. 5.19.2.7.13 New tridoc for HINF - Locator Service Guidelines.
67. Exhibit 5.19.2-3 New tridoc for Pop-up paragraph Exhibit for On Line Notice Review (OLNR).
68. Exhibit 5.19.2-4 New tridoc for CSCO Non-Filer Campus Addresses.
69. Exhibit 5.19.2-5 New tridoc for Submission Processing Files Addresses.
70. Exhibit 5.19.2-6 New tridoc for Files Address.
71. Exhibit 5.19.2-7 New tridoc for Resolving Issues with Manual Created RD Modules on IDRS.
72. Exhibit 5.19.2-8 New tridoc for Accelerate and/or Delay to TDI status 03 Examples.

Effect on Other Documents

This IRM supersedes IRM 5.19.2 dated September 11, 2012. The following IRM Procedural Updates (IPU's), issued between October 15, 2012 through August 19, 2014, have been incorporated into this IRM: IPU 12U1728, IPU 12U1801, IPU 12U1905, IPU 13U0107, IPU 13U0445, IPU 13U0812, IPU 13U1161, IPU 13U1449, IPU 13U1604, IPU 13U1622, IPU 13U1696, IPU 14U0239, IPU 14U0431, IPU 14U0788 , IPU 14U0963., 14U1077 and 14U1265.

Audience

Small Business/Self-Employed (SB/SE) and Wage & Investment (W&I) employees in Compliance Services Collection Operation, ACS, ASFR/ 6020(b), Territory Area Office, and AM, who process IMF Return Delinquency Responses.

Effective Date

(01-16-2015)

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

5.19.2.1  (01-16-2015)
What Is The IMF Return Delinquency Program?

  1. The objective of the IMF Return Delinquency (RD) Program is to work responses to notices that were generated through Case Creation and issued to taxpayers that have been identified as liable to file and have not filed a tax return by the Return Due Date (RDD).

  2. A compliance check is conducted for a delinquent tax return based on the Program Completion Date (PCD) for each specific Individual Master File (IMF) tax return. PCD is determined when all timely filed, error free returns are processed and the information is transmitted to Martinsburg Computing Center (MCC) for posting. For more information on PCD, see IRM 3.30.123.2.1, Program Completion Date (PCD) Definitions.

  3. A Transaction Code (TC) 140 is created on IMF Taxpayer Delinquency Investigation (TDI) modules to establish the entity and/or Tax Module and Status 02 Delinquency Inquiry on the affected module.

  4. Modules in the RD Program consist of the following:

    • Delinquent Notice Master File(MF) Status 02,

    • TDI Master File(MF) Status 03,

    • Case Closed in Status 06 with a TC 593, 595, 596, 597, or 598,

    • Case Closed in Status 06 with a TC 590 cc 019, which only suppresses the notices.

  5. Other IMF RD Non-Filer programs are ASFR and Refund Hold (IMF). Refer to IRM 25.12.1, Processing Refund Hold Program Inventory or IRM 5.18.1, Automated Substitute for Return (ASFR) Program.

5.19.2.1.1  (01-16-2015)
Return Delinquency Overview

  1. This section provides procedures for Individual Master File (IMF) working the Return Delinquency (RD) Program in the campuses, call-sites, and Field Assistance (FA) offices to ensure timely resolution of taxpayer inquiries received via telephone, paper or face-to-face in regards to a RD module.

  2. Inventory should be worked on a first-in first-out basis to reduce or eliminate overage. See IRM 3.30.123.5.2, Response to Correspondence and Overage Criteria, for additional guidance.

    Note:

    Employees need to ensure communications from taxpayers are addressed in a timely manner to make sure the length of the process is as brief as possible.

  3. For reporting purposes, the "Days to Close" for CSCO Operations is determined from the CSCO received date to closing date.

  4. When sending a letter requesting additional information from the taxpayer, allow up to 30 days for the taxpayer to respond and 15 days for mail delivery, for a total of 45 days.

  5. If additional information is needed refer to IRM 5.19.2.1.2, Out Calls and Disclosure Procedure Overview.

  6. All Employees should attempt to resolve each RD account on initial contact including closing modules with the appropriate Transaction Code (TC) 59X.

    Note:

    Use a block indicator of "BB" for all TC 594 and 599 transactions. See IRM 2.4.26.3 (1) (c), Command Code FRM49, for more information.

  7. Written responses for a RD case received in CSCO and ACS Support Operations must be controlled within 30 days from the IRS received date. If the case cannot be immediately closed, input appropriate delays. See IRM 5.19.2.5.1.1, Accelerate or Delay to TDI Status 03. for more information.

  8. For UD mail follow IRM 5.19.16.1 , Undeliverable (UD) Mail, Bad Address and Address Research (ADR) Processing

  9. If the case meets P-21–3 criteria and cannot be closed by the 30th day, an interim letter must be sent to the taxpayer. For additional guidance see IRM 21.3.3.4.2.2, Interim Responses.

  10. It is a requirement to send a closing Letter 2358C or appropriate letter informing the taxpayer of actions taken to resolve their issue whether or not an interim letter was sent. Refer to IRM 21.3.3.4.2Policy Statement P-21-3 (formerly P-6-12) Procedures, for additional information.

  11. Original returns or amended returns attached to RD notices are excluded from P-21–3.

    Note:

    Correspondence is all written communications from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited per IRM 21.3.3.2, What is a Correspondence? - Policy Statement P-21-3 (Formerly P-6-12) Exclusion List

    Exception:

    If the taxpayer is requesting an acknowledgement to receipt of a tax return, send appropriate closing letter.

  12. For information on IDRS control procedures, see IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.

  13. In all references throughout the IRM that instruct employees to address any balance due issue, it is only required for employees that have had training on Balance Due (BD) work. If the employee has not had adequate BD training, then take the necessary actions regarding the RD issue and refer the BD issue to the appropriate area within your site.

  14. For ACS/ACSS/FA Employees only: When working a TDI Status 03 module and the taxpayer also has a Balance Due (Taxpayer Delinquent Account (TDA) module (Combo case), it is required to verify, document and secure new levy sources. For all other TDI issues you are not required to document and secure levy sources.

  15. Throughout the IRM, all deadline dates, target dates or parameters are counted by calendar days not business days. You start counting with the first day you notify the taxpayer (by telephone or letter), or the first day of actions taken (i.e., IDRS, AMS, etc.), or the first day of entering follow-up items on ACS. See the chart below for more information.

    If ... Then ...
    The calculated call-back date falls on a Saturday, Sunday or Holiday The taxpayers call-back date will be the next business day.

    Reminder:

    Add an additional 4 days to your follow-up on ACS.

    Providing the taxpayer a deadline date Calculate the time frame leading up to the deadline by starting with the current day.

    Note:

    The total follow-up time could include a grace period of up to 5 days.

    Sending a letter requesting additional information from the taxpayer Allow up to 30 days for the taxpayer to respond and 15 days for mail delivery, for a total of 45 days.
    Other follow-up time added to your deadline date
    • Additional 15 days follow-up date for decedent cases

    • Additional 30 days follow-up date for "generally" all others.

5.19.2.1.2  (01-16-2015)
Out Calls and Disclosure Procedure Overview

  1. Throughout this IRM, if additional information is needed to resolve the case and a telephone number is available, attempt to call the taxpayer.

  2. When contacting taxpayers by telephone, out calls should be placed between the hours of 8:00 a.m. and 9:00 p.m. of the taxpayers time zone in which you are calling.

    Note:

    These guidelines are also applicable when making out calls on a Saturday or Sunday.

    Exception:

    When contacting a taxpayer's representative (POA), contacts should only be attempted during routine business hours (i.e. 8:00 a.m. to 6:00 p.m., Monday thru Friday) based on the POA's time zone unless other arrangements have been agreed to by the POA. Other arrangements/information must be documented on AMS.

  3. When addressing the delinquent return via telephone contact and the taxpayer has the return already prepared, encourage the taxpayer to fax directly to you while on the telephone.

  4. When working telephone contact, it is required to verify/secure and input all taxpayers telephone numbers (i.e. home, work, cell phone, etc.) when working any Notice Status 02 or Taxpayer Delinquency Investigation (TDI) Status 03 modules. Document IDRS, ACS and AMS accordingly.

  5. All employees are required to follow disclosure guidelines.

  6. For purposes of identification and to prevent unauthorized disclosures of tax information, follow the chart below:

    If the contact is... Then ...
    Taxpayer See IRM 21.1.3.2.3, Required Taxpayer Authentication or IRM 11.3.2.3.2, Requirements for Verbal or Electronic Requests
    Mailing and Faxing Tax Account Information See IRM 21.1.3.9 (2), Mailing and Faxing Account Information, and IRM 11.3.1.11, Facsimile Transmission of Tax Information.
    Power of Attorney (POA), Form 2848, Power of Attorney and Declaration of Representative See IRM 11.3.3, Disclosure to Designees and Practitioners
    Tax Information Authorization (TIA) Form 8821, Tax Information Authorization See IRM 11.3.3.2, Disclosure to Third Parties Based Upon Taxpayer Request for Assistance
    See IRM 11.3.3.3 (1), Distinction Between Disclosure to Designees and the Conference and Practice Requirements
    See IRM 11.3.3.3 (2), Distinction Between Disclosure to Designees and the Conference and Practice Requirements
    Oral Disclosure Consent See IRM 11.3.3.2.1, Requirements for Oral Authorization
    Parent/Guardian of Minor See IRM 11.3.2.4.10, Minors
    Hearing Impaired (including telecommunications device for the deaf (TDD) equipment) See IRM 11.3.2.3.2 (2), Requirements for Verbal Electronic Requests
    Third Party claiming a material interest See IRM 11.3.2.4, Persons Who May Have Access to Returns and Return Information Pursuant to IRC 6103 (e)
  7. If making out-calls and there is a valid POA on file, you must contact the POA and not the taxpayer.

    Note:

    CSCO and ACSS employees may, but are not required to, leave a message on an answering machine or voice mail.

5.19.2.1.3  (01-16-2015)
Documenting Account Actions

  1. You are required to document actions taken on taxpayer's accounts and/or actions promised by a taxpayer. .

    Note:

    This is a general statement. Refer to the specific sections within the IRM for accurate documentation.

  2. All documentation will be done via AMS. All documentation should be, to the extent possible, completed while the taxpayer is on the phone. When working paper, AMS documentation should support action(s) taken based on complete research.

  3. Complete and accurate case documentation promotes quality and consistency in working cases. Documentation should contain enough information so that any person subsequently reading it can easily determine what decisions were made, why those decisions were made, what actions were taken and what further actions are required to resolve the case.

  4. Do not use the term "Illegal Tax Protester" (ITP) or similar designations on IDRS, ACS History Codes, or AMS comments. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3707, prohibits the use of any tax protester designation to describe the taxpayer. If you identify any such reference, immediately inform your manager. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use.

  5. When securing an updated address via telephone or correspondence document entity as mailing address vs. location address, if applicable. When the taxpayer is requesting a change of address, and has moved from one state to another, you may need to document the Collection Location Code (CLC) . See IRM 5.19.1.3.2.1, Entity and Address Changes. For additional assistance for address changes, refer to:

    • IRM 3.21.3.11.4.1, International Mailing Address.

    • IRM 3.13.5.123, Domestic Address Change Procedures for Primary Taxpayer ONLY.

    • IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    Example:

    If address on file is a P.O. Box, and a street address is secured, document P.O. Box as mailing address, and street address as location address on ENMOD.

5.19.2.1.4  (01-16-2015)
Correspondence Overview

  1. IRS correspondence or notice errors should be identified and reported to the Office of Taxpayer Correspondence (OTC) utilizing the Red Button application found at the Servicewide Notice Information Program (SNIP) website. Employees should report any correspondence errors identified, including notices that are smudged, unreadable, or sent to an incorrect taxpayer. The Red Button application should also be used to report correspondence that may have an unauthorized disclosure of personally identifiable information (PII). See IRM 25.13.1.3, Erroneous Correspondence Procedures - Red Button Process, for additional information.

  2. When requesting a delinquent return, remind the taxpayer to ensure the correct current address is on the return, whether it is a copy or original return.

  3. If responding via correspondence to a taxpayer response (CP notice or letter), employees are required to acknowledge documentation and/or information received and take all necessary actions. See IRM 21.3.3, Incoming and Outgoing Correspondence/Letters for additional guidance.

    Note:

    When responding to taxpayer, ensure the letter is sent using a single name line. If a joint name is present, overlay the name line on CC LETER to a single name line. Do not change on CC ENREQ.

  4. For CSCO employees: When corresponding with taxpayers use the appropriate Accounts Management (AM) Toll Free number. Document AMS to reflect actions taken and any pertinent information for the next employee.

    Note:

    Situations may arise when it will be necessary for CSCO employees to give their direct telephone number to resolve a situation on an account, but these instances should be rare.

  5. If taxpayer requests written confirmation that we received their tax return or correspondence, send Letter 2358C , Letter 4431C or other appropriate letter.

  6. When referring a case to another office for resolution send Letter 86C. Refer to IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office for additional guidance on when it is necessary to issue the letter.

  7. When working correspondence, it is required to verify/secure and input all taxpayers telephone numbers (i.e. home, work, cell phone, etc.) when working any Notice Status 02 or Taxpayer Delinquency Investigation (TDI) Status 03 modules. Document IDRS, ACS and AMS accordingly.

5.19.2.1.5  (01-16-2015)
IAT Tools

  1. This section provides information on mandated IAT tools for Campus Compliance Employees

  2. IAT provides tools that simplify research, reduce keystrokes, eliminates repetitive typing, and increases the accuracy of regular work processes.

  3. The chart below provides a list of mandated tools for ACS Call Site, ACS Support, CSCO and ASFR employees. Descriptions of each tool as well as job aids can be found on the IAT website, Instructions and Job Aids.

  4. If an IAT tool is not available, or an employee has a problem with the IAT Task Manager, the case should be processed through IDRS, following established procedures. See the IAT Website, for how to report/fix problems with IAT tools.

    Note:

    Document AMS when an IAT toll is not used.

  5. Additional IAT tools will be added to the following list when one is deemed beneficial and seen as adding quality to Campus Collection work processes.

  6. IAT tool users can visit the IAT Website, to become a subscriber to the IAT newsletter. The iNews details all ongoing IAT activity with tool retirements and rollouts.

    Functions IAT Tools Suggested Use
    ACS and ACS Support Functions
    • Compliance Suite

    • Credit Transfer

    • Erroneous Manual Refund (EMT)

    • Fill Forms

    • Letters

    • Refund Suite

    • REQ54

    • REQ77

    • X Claim (ACSS)

    Payment Tracer
    CSCO Functions
    • Compliance Suite

    • Credit Transfer

    • Erroneous Manual Refund (EMT)

    • ESTAB

    • FRM49

    • Letter

    • REQ54

    • REQ77 (TDI)

    • Refund Suite

    • TFRP Suite (SB)

    • Payment Tracer/Tracer (BAL)

    • Withholding Compliance - (WI BAL)

    Intentionally Left Blank
    ASFR
    • Credit Transfer

    • ESTAB

    • FRM49

    • Letters

    • Refund Hold

    • XClaim

    Compliance Suite

5.19.2.2  (01-16-2015)
IMF Return Delinquency Case Creation

  1. IMF Return Delinquency case creation identifies taxpayers who have not filed a return but potential income/data is identified and reported to the IRS via "Information Return Masterfile" (IRMF) that meets certain case selection criteria. It also identifies Stop-filer taxpayers who filed the previous year but not the next.

  2. All tax modules identified as Nonfilers during case creation are assigned Select Codes (SC). Not all Select Codes are worked in each specific RD program year. See Document 6209, Section 11, for a list of current and prior year select codes.

  3. New modules selected into the RD program for a specific tax year are issued a notice requesting the delinquent return.

  4. The CP 59 /CP 759 was created as a generic notice that is mailed to all delinquent IMF modules and will contain Pub 1, Your Rights as a Taxpayer, Notice 609 , Privacy Act Notice, and a return envelope.

  5. As of January 2013, a CP 515 will be issued when a CP 59 is returned from the post office with a new address. For more information, see IRM 5.19.16.1.2, Undelivered (UD) Mail Procedures.

  6. Generally a CP 518 will be mailed to taxpayers if a return does not post or the open RD is not closed within 8 weeks of the CP 59. The CP 518 will contain Notice 1219A , Notification of Potential Third Party Contact, and a return envelope.

    Exception:

    When a "new" created module has an existing associated module, the "new" module will accelerate to the status of the existing module bypassing a CP 518.

  7. The case proceeds to TDI ST03 if the case is not closed within 6 weeks of the CP 518.

    Exception:

    Not all modules go to TDI Status 03.

  8. IMF Primary Code "B" (PC-B) cases receive two notices (CP 59 & CP 516) and will remain in Notice Status 02. The CP 516 will contain a return envelope only.

    Note:

    A Notice Status 02 module, including PC-B's, can systemically be moved into TDI Status 03 without receiving a subsequent notice if the taxpayer already has a module in TDI Status 03.

  9. A sampling of these notices are reviewed by the Compliance Services Collection Operations (CSCO) RD function prior to mailing to ensure accuracy. See IRM 5.19.2.5.10, Return Delinquency On-Line Notice Review (OLNR) System, for procedures on working the OLNR system.

  10. Unresolved IMF RD cases may be considered for ASFR or ACS processing.

  11. If UD mail is received follow IRM 5.19.16.1, Undeliverable (UD) Mail, Bad Address and Address research (ADR) Processing.

5.19.2.3  (01-16-2015)
Manual Creation of a Return Delinquency Module (IMF Only)

  1. The purpose of manually creating a return delinquency (RD) is to prompt the generation of RD notices on modules not selected through case creation.

    Exception:

    "AM" employees should create a Form 4442 referral to RD function when a case creation is required to be done.

    Note:

    This section applies when working calls, face to face contacts and correspondences only.

  2. The following REQUIREMENTS must be met (per module) in order to manually create a RD.

    Exception:

    State Reverse File Match Initiative (SRFMI) and Refund Hold (RH) modules which have separate systemic processes.

    • IRPTR(J) must be present,

    • No unreversed TC 140, 474, or 150 present,

    • Must be above filing requirements,

    • Must exceed minimal tax due (see IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due (LNTD),

    • On current processing year only, input a TC 474 after November 15th, this will allow IMF Case Creation to select the module first before a manual creation is considered.

      Example:

      Do not create an RD module for current filing tax year before November 15th of current calendar year.

    • The module is more then 6 years old (to determine the last 6 years, see IRM 5.19.2.5.4.6, IMF Determining Liability.

  3. Once a determination has been made to create a module (TC 474), continue to follow IRM 5.19.2.3.1, Manual Creation of a Return Delinquency Module on IDRS

5.19.2.3.1  (01-16-2015)
Manual Creation of a Return Delinquency Module on IDRS

  1. The purpose of this section is to illustrate the method of manually creating an IMF RD module.

  2. After determination is made to create a module per IRM 5.19.2.3, Manual Creation of a Return Delinquency Module (IMF Only) and IRM 5.19.2.5.4.6, IMF - Determining Liability, use the following Integrated Data Retrieval System (IDRS) Command Codes (CC).

    • IMFOL, see IRM 2.3.51, Command Code IMFOL.

    • ENREQ, see IRM 2.4.9, IDRS Terminal Input, CC ENREQ, INCHG, IRCHG, BNCHG, and BRCHG and CC FRM49 and/or TDIRQ.

    • FRM49, see IRM 2.4.26, Command Codes FRM14, FRM49, and TDIRQ.

  3. Command Code REQ77 is used to input TC 474, TC 475. TC 474 is used to "Establish a Tax Module" or to "Delay a TDI" .

  4. To establish an IMF tax module, follow the instructions below:

    If Then
    A module is established on IDRS but does not have a TC 140,
    1. Input TC 590 CC 075 and then TC 592.

    2. Input a TC 474 with posting delay code 02 and input 08 in cycle field. Input Select Code (SC) "96 " for Full Compliance Check (FCC) or "99" for State Reverse File match Initiative (SRFMI) in TDI-Select-Cd field, using CC REQ77.

    Note:

    Once the TC 474 posts, the first RD notice (CP 59 ) will systemically generate a request for a tax return. "Cycle (cy) 08" is used only as an indicator for TDI programmers' analysis. It is not used to post a delay code.

  5. If the above procedures create an unpostable, see Exhibit 5.19.2-7, Resolving Issues with Manual Created RD Modules on IDRS, for procedures to resolve the issue.

5.19.2.4  (01-16-2015)
Return Delinquency Research

  1. Research tools that will help you in resolving Return Delinquency (RD) responses include, but are not limited to the following:

    • Integrated Data Retrieval System (IDRS)/ Corporate Files On Line (CFOL) Command Codes (CC)

    • Automated Collection System (ACS) -ACSWeb

    • Account Management Services (AMS)

    • ADR (Address Research)

    • Document 6209

    • IRM 2.3.1, Section Titles and Command Codes for IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • Accurint (Lexis Nexus)

    • RTR (Remittance Transaction Research)

    • Automated Non-Master File (ANMF) system

  2. Research all cross reference accounts for possible case resolution using research tools, without taxpayer contact. This includes spouse’s SSN number, Individual Master File (IMF) and Business Master File (BMF) cross reference when identified through research or taxpayer states sole proprietor or owns a business, or Non-Master File (NMF) when either Overflow Status, or High Dollar criterion $1 Billion or more. The Automated Non-Master File (ANMF) System is an accounting and data control of NMF accounts.

    Note:

    DO NOT reverse a previous TC 59X with a TC 592 on a module if CC ENMOD shows TC 971 AC 502 ($1 Billion or more), TC 971 AC 100-104 and 145 or MFT 31 (Mirrored accounts) on IMF.

  3. See IRM 5.19.2.5.7, Credit Balance Overview for procedural guidance on researching credit balance accounts. If a credit is identified as being mis-applied, take the necessary actions to move the credit to the correct module or entity.

  4. Electronic payments (EFTPS) can be researched and verified via IDRS command code EFTPS. Electronic payment information is retained and can be researched for the current year plus four previous years. Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477. See IRM 2.3.70.2, General, for guidance on using the CC EFTPS to verify if payments were applied correctly.

  5. Transcript Delivery System (TDS) tool, can be used to send Wage and Income Information Documents to the taxpayer and appropriate cover letter (when applicable), in lieu of any procedures throughout this IRM that state to send IRPTR or SUPOL supplements with the appropriate IRS letter.

    Note:

    See IRM 21.2.3.4, Transcript Procedures, for procedures on using TDS

5.19.2.4.1  (01-16-2015)
IRP Income

  1. The following IRP income is considered gross income. It is used when figuring the total tax for tolerance purposes in determining "Little or No Tax Due" .

    • Wages

    • Interest

    • Dividends

    • Total Taxable Annuity

    • Allocated Tips

    • Unemployment Compensation

    Note:

    For the 2009 tax year only, the American Recovery and Reinvestment Act provided that the first $2,400.00 of unemployment compensation received in 2009 was non taxable. For 2010 and subsequent tax years, in general, unemployment compensation is fully taxable. However, if the taxpayer made contributions for a governmental unemployment compensation program and the taxpayer does not itemize deductions, the taxpayer should reduce the amount he or she reports by those contributions (Line 19 on the Form 1040).

  2. Computed taxable social security benefits are always taxable and cannot have any expenses written off against the income. However, the taxpayer's total income amount is used to calculate the taxable portion of social security benefits.

  3. The following IRP income received by taxpayers is always included in gross income. However, taxpayers may reduce these items of gross income by certain expenses associated with earning the income, or by a recovery of basis, in determining their taxable income.

    • Total Pensions

    • Early distribution of pensions

    • Non-Employee Compensation (NEC)

    • Agricultural Subsidies

    • Distribution Share

    • Patronage Income

    • Fishing Income

    • Gross Winnings

    • Barter Income

    • Rents and Royalties

    • Medical Payments

    • Real Estate Payments

    • Broker/Stock Sales

    • Federal Contractor Income (Not Form 8596)

    • K-1 Business

    • Crop Insurance

    • Attorney Fees

    • Passive Income

    • Cancelled debt (see below)

    • Other Income (i.e. amount reported on 1040 by taxpayer not listed above)

  4. If a taxpayer owes a debt and the debt or loan is cancelled, the amount of the cancelled (or discharged) debt or loan generally is includible in gross income.

    Exception:

    Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude cancellation of debt income from the discharge of debt on their principal residence. Section 108(a)(1)(E) and 108(h) generally permits the taxpayer to exclude cancellation of "qualified principal residence interest indebtedness" for debt forgiven during calendar years 2007 through 2013. Cancellation of debt may occur in connection either with a mortgage restructuring or with a foreclosure of the property. The maximum amount of debt cancellation that can be excluded is $2 million ($1 million if the taxpayer is married filing separately). Lenders report debt cancellations forgiven debt to debtors and the IRS on Form 1099-C, Box 2.

    Note:

    A taxpayer may say that he or she is entitled to exclude the amount of cancelled debt because it is a qualified principal residence interest indebtedness. To claim the exclusion, a taxpayer should file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Refer the taxpayer to Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, for additional guidance.

  5. Self Employment (SE) Tax should be computed and added into the total tax computation for the following IRP income listed (if net earnings from self employment income is less than $400, do not compute self employment tax. The taxpayer does not owe self employment tax.).

    Note:

    You can also refer to Form 1040 Schedule SE as a tool for accurate calculation.

    • NEC

    • Medical Payments

    • Fishing Income

    • Barter Income

    • Federal Contractor (Not Form 8596)

    • Crop Insurance

    • Attorney Fees

    • Patronage Income

    • K-1 Guaranteed Payments

    • K-1 Business if a General Partner

  6. The following IRP items are not taxable income and should not be used to determine the gross income or tax amounts:

    • IRA Contributions

    • Withholding,

    • Excess FICA and Medicare Wages

    • FICA Wages

    • FICA Withholding

    • Computed Premium Distribution

    • Computed Self Employment Tax

    • Advanced Earned Income Credit

    • Early Withdrawal Penalty

    • Mortgage Interest

    • CTR Transactions Amount

    • Form 8596

5.19.2.5  (01-16-2015)
Return Delinquency Procedures

  1. This section provides guidance in resolving taxpayer inquiries and responses to accounts in the Return Delinquency (RD) Program.

5.19.2.5.1  (01-16-2015)
IMF Cases Referred

  1. Delinquency requests may be received from other areas within the Service on the following forms:

    • Form 4442, Inquiry Referral - Request for actions unable to be completed by originator.

    • Form 9948, Referrals To - Referral/Routing to other areas within the Service.

    • Form 3499, Information Transmittal- Referral/Routing to other areas within the Service

    • Form 3210, Document Transmittal- Document transmittal to other areas within the Service.

    • Form 2209, Courtesy Investigation - Request for Collection to secure a return when a return has previously posted and has been removed (e.g. Transaction Code (TC) 291, etc.).

      Note:

      We no longer accept Form 2209 for account modules where returns have been removed and a TC 150 for zero remains. If you receive this form for this type of request, please return to sender with a statement explaining we no longer accept these

5.19.2.5.1.1  (01-16-2015)
Accelerate and/or Delay To TDI Status 03

  1. During normal processing, a RD module goes into Notice Status 02 when the first RD notice (CP 59) is issued. There are exceptions which will be discussed later.

    Note:

    If a CP 59 is returned Undelivered with a new forwarding address, the CP 59 will be reissued and generate a CP 515. See IRM 5.19.16.1.2, Undelivered (UD) Mail Procedures, for more information.

  2. For Individual Master File (IMF) Non Primary Code (PC)-B modules, a final RD notice (CP 518 ) is issued 8 cycles later and 6 cycles after this notice (14 cycles after the first RD notice) the module goes to TDI Status 03.

    Note:

    For UD mail received follow IRM 5.19.16.1, Undeliverable (UD) Mail, Bad Address and Address research (ADR) Processing.

  3. You may accelerate and/or delay a Non PC-B RD module to TDI Status 03. Case goes to ACS or ASFR, by using command code (CC) ASGNI or CC ASGNB, see IRM 2.4.27-3, ASIGNI/ASGNB Input Display - Definers, for using a delay Cnn.

    Note:

    A delay of 8 cycles "C08" is the longest delay allowed without leaving an IDRS control base open on the account for monitoring.

  4. When working a RD response (correspondence or online) and you cannot resolve the RD module, the module may be accelerated to TDI Status 03 for further investigation.

    Note:

    For more detailed examples, see Exhibit 5.19.2-8, Accelerate and/or Delay to TDI Status 03 Examples.

5.19.2.5.1.2  (01-16-2015)
Accelerate to Compliance Territory Office (Revenue Officer)

  1. In certain situations when all attempts to resolve the RD module have failed, and the taxpayer requests a face to face meeting, you should advise the taxpayer to contact the nearest field assistance office. Provide the taxpayer with the address of the nearest Taxpayer Assistance Center (TAC), Local Tac Office Finder by Zip, and proceed to accelerate the module to TDI Status 03.

    Note:

    Make sure the taxpayer is aware that the TAC office will not prepare the return for them. If they need assistance with preparing a return, you should refer them to the appropriate toll free number or IRS.gov.

  2. If the taxpayer requests face to face meeting at their place of business or residence because:

    • They can't get to a field assistance office

    • Or has lost records due to circumstances beyond their control (fire, flood, seizure, etc.) and we can't re-construct their records, suggest the taxpayer estimate expenses. If they cannot estimate expenses, then refer case to a Compliance Territory Office.

    Send Letter 86C or other appropriate transfer letter to the taxpayer, following the procedures stated below:

    If And Then
    RD module is in Notice Status 02 or TDI Status 03, You have supporting documentation,
    1. Using CC ASGNI or CC ASGNB. .

    2. Assign the account to 6466 for assignment to Territory Office (indicating supporting documentation).

    3. For Notice Status 02 only, input a delay C01 to accelerate to TDI Status 03.

    4. Route the case to the appropriate territory office (Revenue Officer).

    RD module is in Notice Status 02 or TDI Status 03, You do not have supporting documentation,
    1. Using CC ASGNI or CC ASGNB. .

    2. Assign the account to 6401.

    3. For Notice Status 02 only, input a delay C01 to accelerate to TDI Status 03.

    4. Destroy the notice.

    RD module is a satisfied (Status 06 closed with a TC 59X) and the taxpayer has another module in Compliance Territory Office (Revenue Officer) status, You have supporting documentation,
    1. Using CC ASGNI or CC ASGNB, assign the account to 6466.

    2. Input a TC 592 to reverse the previous TC 59X, using FRM49.

    3. Route the case to the appropriate territory office (Revenue Officer).

    RD module is a satisfied (Status 06 closed with a TC 59X) and the taxpayer has another module in Compliance Territory Office (Revenue Officer) status, You do not have supporting documentation,
    1. Using CC ASGNI or CC ASGNB, assign the account to 6401.

    2. Input a TC 592 to reverse the previous TC 59X, using FRM49.

    3. Destroy the notice.

    RD module is satisfied (Status 06 closed with a TC 59X) and there are no other modules assigned to the Compliance Territory Office (Revenue Officer). You have supporting documentation.
    1. IMF Only: The module must be on TDINQ. If not, you must establish the entity using CC TDIRQ.

    2. Using CC ASGNI or CC ASGNB, assign the account to 6466.

    3. Input a TC 592 to reverse the previous TC 59X, using FRM49.

5.19.2.5.2  (01-16-2015)
IRS Employee (Select Code 02) Return Delinquency Program

  1. Return delinquencies for IRS employees are identified by Select Code (SC) 02.

  2. Refer Select Code 02 case(s) to the designated Compliance Services Collection Operations (CSCO) employee.

  3. Select Code "02" , RD first Master file notice (CP 59/759) "Request for Your Tax Return" , are usually issued by the second cycle (week) of the IMF first notice issuances for each tax year.

    • The notice will be printed and mailed at the two Correspondence Production Services (CPS) sites- Austin and Fresno.

    • An IRS Employee List will show the IRS employee that will be receiving the notice.

    • The IRS Employee List will be provided by Headquarters (HQ) via secure E-mail to each appropriate campus to the designated CSCO employee.

  4. IRS employees receive only one RD Notice (CP 59, CP 759). Five cycles later, a TDI issues unless the tax examiner delays or accelerates the issuance or the case has been closed.

    Note:

    Select Code 02 TDI's bypass ACS.

5.19.2.5.2.1  (01-16-2015)
IRS Employee Return Delinquency List Processing

  1. The IRS employee RD list will be forwarded by secure E-mail to the designated CSCO employee at the two IMF TDI consolidated campuses (Austin and Fresno) one cycle before the first cycle of the IMF CP 59 /CP 759 issuance.

    • The listing is E-mailed twice a year, normally in November and the following February.

  2. When the list is received determine if the taxpayer is on the list in error:

    • Is the individual an IRS employee.

    • Does the income for the delinquent tax year include IRS income.

    • Check for obvious incorrect name control.

    • Determine if the prior year case has information that can be used to close this year.

    • Research IDRS for a cross-reference TIN. If joint return is filed, input appropriate transaction codes.

    • Compare and verify the amount and source of income versus filing requirements, and close as Not Liable if the income is below filing requirements (i.e. use TC 590 cc 076).

  3. Prepare a case history sheet for each IRS employee case still open to be used for monthly case monitoring. The history sheet must be documented each month of all account actions (i.e., date of CP 59 sent, Revenue Officer (RO) assignment, return filed or not, and any other pertinent information). Maintain list and history sheets in a locked file cabinet, see IRM 5.19.2.5.2.5, IRS Employee File.

5.19.2.5.2.2  (01-16-2015)
Select Code 02 Responses

  1. The purpose of this section is to provide general guidance for working Select Code 02 responses. These responses are worked as any other return delinquency responses in IRM 5.19.2.5.4, IMF Return Delinquency Responses and Inquiries, with the following exceptions:

    • Cannot be closed as Little or No Tax Due.

    • The tax module is systemically blocked from closure under the provisions of Policy Statement P-5-133.

      Follow the guidelines below on working responses:

      If And Then
      Response is insufficient, Necessary to contact employee or obtain other information through research,
      1. Contact employee by telephone number (if applicable) and then send Letter 2269C to obtain necessary information.

      2. Input a delay "C08" using CC ASGNI or CC ASGNB,.

      Notice TIN incorrect, Intentionally Left Blank
      1. Advise employee by telephone or correspondence to contact personnel office.

      2. Input TC 041 using CC ENREQ to correct TIN.

      Response meets see IRM 5.19.2.5.4.2, IMF Special Handling. Account is in Notice Status 02,
      1. Input D01 to accelerate to the area ICS for systemic assignment.

        Note:

        Do NOT assign to TIGTA or Examination, case will be systemically assigned to the Area ICS/Entity Quality Analyst (IQA) via ICS.

      2. Monitor for TDI assignment.

      3. Prepare Form 3210 and transfer the case (Case History Sheet, correspondence, any supporting documents) to the assigned Area Office. Put all information in a Confidential Information envelope labeling it "IRS Employee RD Case" and then place inside a mailer envelope.

      4. Retain a copy of the case in the IRS Employee File and associate the acknowledged copy of Form 3210 when it is received.

      Account is in TDI Status 03.
      1. Prepare Form 3210 and transfer the case (Case History Sheet, correspondence, any supporting documents) to the assigned Area Office. Put all information in a Confidential Information envelope labeling it "IRS Employee RD Case" and then place inside a mailer envelope.

      2. Retain a copy of the case in the IRS Employee File and associate the acknowledged copy of the Form 3210 when it is received.

      3. Document AMS comments appropriately.

      Response indicates not an IRS employee, no longer works for IRS or the primary’s ex-spouse is an IRS Employee. Account is in Notice Status 02,
      1. Research on IRS web under Discovery Directory or using https://persinfo.web.irs.gov/hrcemploct.htm to verify if the taxpayer is currently an IRS employee.

      2. If research indicates the taxpayer is a current IRS employee, continue as insufficient response as shown above.
        REMINDER: Seasonal employees are considered current IRS employees.

      3. If research indicates the taxpayer is not an IRS employee or the taxpayer is the ex-spouse and there are no outstanding joint liabilities with the IRS employee, input TC 972 AC 191 on CC FRM77, and include in remarks section "Reversing IRS Employee Indicator" . Input another TC 972 AC 51 to remove Federal Employee Indicator.

        Note:

        IRS employees have both IRS Employee indicator and Federal Employee indicator and both need to be removed if they are no longer an IRS employee, a Federal Employee or Retiree.

      4. Document AMS comments appropriately.

      Account is in TDI Status 03.
      1. Prepare Form 3210 and transfer the case (Case History Sheet, correspondence, any supporting documents) to the assigned Area Office. Put all information in a Confidential Information envelope labeling it "IRS Employee RD Case" and then place inside a mailer envelope.

      2. Retain a copy of the case in the IRS Employee File and associate the acknowledged copy of Form 3210 when it is received.

      3. Document AMS comments appropriately.

  2. When receiving Undeliverable (UD) notices for Select Code 02 cases:

    • If there is a United States Postal Service (USPS) yellow label with a forwarding address and verification shows the same taxpayer, follow procedures in paragraph 3 below.

    • If the Undeliverable notice has no USPS yellow label or the yellow label is not the same taxpayer, see IRM 5.19.16.1.2, Undelivered (UD) Mail Procedures.

      Note:

      If case is in TDI Status 03 and is assigned to an area office, contact area office first before address change input or continue the address research (ADR) process.

  3. If the UD mail shows an updated address on a yellow USPS label:

    • Input address change on IDRS.

    • Send a Letter 2269C and select the appropriate paragraphs from the IRP information by checking CC SUPOL or IRPTR.

    • Annotate AMS comments, and the case history sheet, of the address change and date the letter was sent.

  4. If a delinquent return is secured, see IRM 5.19.2.5.4.6.12, IMF Response with Original Return. Annotate the following on the employees case history sheet:

    • Date the return was secured.

    • Amount of tax, penalty and interest due.

    • Amount paid and date paid.

    • Amount of refund due.

    • Employee deceased, when applicable.

  5. File closed notice responses and any related documents in the IRS employee file.

  6. Once a month, using IRS employee list and case history Sheet, research each TIN for each case still open and annotate any subsequent activity. If there is any change from the previous research, attach an appropriate IDRS print of changes (i.e. ENMOD for Entity, TXMOD for account changes).

5.19.2.5.2.3  (01-16-2015)
Select Code 02 TDI Issuances

  1. When a case is in TDI Status 03 and currently assigned to the area office, associate any related documents and prepare Form 3210 to transfer the case (Case History Sheet, correspondence, any supporting documents) to the assigned Area Office. Place all pertinent information in a Confidential Information envelope labeling it "IRS Employee RD Case" and then place this inside a mailer envelope.

  2. If the module is in TDI Status 03, currently assigned to the area office and you receive related or pertinent information that needs to be referred, contact the ICS/Quality Analyst (IQA) as they are responsible for receipt, control and assignment of the IRS Employment cases. Refer to IRM 5.1.11.4.7, IRS Employee Return Delinquency, for additional guidance. To locate the IQA assigned, refer to SERP-Who/Where from SERP Homepage: QA Contact List for CF & AI, click on ICS/Entity Quality Analysts tab.

5.19.2.5.2.4  (01-16-2015)
Select Code 02 – Area Office Closures

  1. Record the disposition of each case on the list. Retain a copy of the closed TDI in the employee file.

  2. If it is identified that a case was closed in error, or not appropriate (i.e. closed other than "below FR" or reassigned to 7000 or 8000) contact the appropriate IQA to have the case assigned back to the RO, and to secure a return. See IRM 5.19.2.5.2.3, Select 02 TDI Issuances, to locate the appropriate IQA.

5.19.2.5.2.5  (01-16-2015)
IRS Employee File

  1. All documents must be locked in a secured file cabinet.

  2. Maintain the file by tax year. Divide yearly files into sub files:

    • Sort open cases in Taxpayer Identification Number (TIN) order by copy of notice list, and employee case files.

    • Sort closed cases in TIN order by copy of notice list, and employee case files.

    • TC 594/599 source documents.

    • Closed TC 594/599 transcripts.

    Note:

    Keep one year in active status and the prior year as inactive. Retain inactive files for one year, then destroy the oldest year when the next year is received. Dispose of prior year files in accordance with established procedures for "secure shredding " .

5.19.2.5.3  (01-16-2015)
Taxpayer Advocate Service Referrals

  1. This section provides procedures and guidance for working referrals to the Taxpayer Advocate Service (TAS). Our goal is to address and resolve the taxpayer's issue on initial contact whenever possible and avoid unnecessary referrals to TAS. Make every attempt to assist the taxpayer prior to referring to TAS.

  2. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM 13.1.7.2, TAS Case Criteria) when you can’t resolve the taxpayer’s issue the same day.

    • The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer’s issue.

    • Do not refer "same day" cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations.

    • When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Services Assistance (and Application for Taxpayer Assistance Order), and forward to TAS. See (3) below for special procedures for identity theft issues.

  3. As part of the Identity (ID) Theft Program, the Accounts Management (AM) Identity Protection Specialized Units (IPSU) will generally assist taxpayers whose situations meet IRM 13.1.7.2, TAS criteria 5 -7, Systemic Burden, AND involve identity theft. Applicable cases will now be considered IPSU criteria.

    1. If a case meets IPSU criteria, refer the case to AM IPSU using Form 4442, Inquiry Referral.

    • The referral can be sent via secure E-mail to *W&I-ITAR when available, or by fax to the ID Theft fax line (855) 807-5720 by COB the day the criteria was identified.

    • The referral MUST contain all taxpayer’s correspondence with any attachments/documentation received with the case.

    • A Letter 86C or other applicable letter to the taxpayer is required. Inform the taxpayer he/she can expect contact within 7 business days from the date of receipt.

    • See IRM 21.9.2.9, Identity Theft Assistance Request (ITAR) -General Information, for more information and IRM 5.19.1.2.1 (9)(g), For All Employees.

      Note:

      If using AMS for referrals, select ITAR from the drop down menu, select Andover for English and Fresno for Spanish cases.

      Note:

      If not using AMS, annotate "ITAR" on the top of the Form 4442 prior to forwarding to AM IPSU.

  4. Follow the table below if referring the account to the Taxpayer Advocate Service:

    If Then
    Case is in Notice Status 02,
    • Input a delay C08 using CC ASGNI or CC ASGNB.

    • Document Account Management Services (AMS) of actions taken including case referral to TAS.

    Case is in TDI Status 03.
    • Document AMS of actions taken including case referral to TAS.

    • If the account is on ACS input history item as follows:
      For ACS Support employees: TOS7,45,TAS
      For ACS Call Sites employees: TOR2,45,TAS

  5. Use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance order), and forward to the Taxpayer Advocate Office in accordance with your local procedures.

5.19.2.5.4  (01-16-2015)
IMF Return Delinquency Responses and Inquiries

  1. This subsection provides procedures for processing IMF Return Delinquency (RD) Notice responses and inquiries.

  2. See Document 6209 Section 11, for IRP Select Code Criteria Codes to determine the taxpayer's income and requirement to file.

  3. When responding to a taxpayer inquiry and there is a discrepancy requiring disclosure, see IRM 11.3.2, Disclosure to Persons with a Material Interest, for Disclosure guidance.

5.19.2.5.4.1  (01-16-2015)
First Read on Responses with Returns

  1. All incoming returns should go through a first read screening process prior to being batched.

  2. Scan the Notices and Returns for the following:

    • Correspondence attached to a return

    • The primary TIN on the return does not match TIN on the notice

    • The address on the return does not match the address on the notice

  3. If any of the above conditions are present, batch and follow normal processing procedures.

  4. If none of the conditions are present:

    • Input TC 599 CC 094 for a taxable return

    • Input TC 599 CC 096 for a non-taxable return

    • Write "TC 599" on left margin of the return

    • Detach CP notice and destroy, classified waste

    • Forward return to Submission Processing (SP). See IRM 3.10.72–12 , Submission Processing Contacts (Batching Function).

  5. If the return does not have the required signatures:

    If ... Then ...
    If a CP 59 is attached and signed on the appropriate Jurat Line
    • Mark on signature line of the return "Attached" .

    • Attach the notice behind the return.

    • Notate on the notice "original signature attached" .

    • Follow procedures in 4 above.

    If there is no appropriate Jurat signature present
    • Attach Form 3531 to the front of the return.

    • Check the appropriate boxes on the form requesting a signature.

    • Return to the taxpayer in an envelope.

    • Leave comments on AMS that say "unsigned return"

    Note:

    Make sure you are returning any IA requests or Financial statements back with the return so the taxpayer can return them once they sign the return.

  6. Report time and volume under required OFP code

5.19.2.5.4.2  (01-16-2015)
IMF Special Handling

  1. Review for the following conditions and take the required actions:

    If And Then
    Taxpayer response is threatening or indicates a potentially dangerous situation (online or in correspondence), Account is in Notice Status 02 or Taxpayer Delinquency Investigation (TDI) Status 03,
    1. Assign to 8150 using command code (CC) ASGNI, see IRM 2.4.27-5 , ASGNI/ASGNB Input Display—Single and Batch .

    2. Refer to IRM 5.1.3, Safety, Security and Control, (i.e. "Potentially Dangerous Taxpayer (PDT)" .

    3. Report all incidents to Treasury Inspector General for Tax Administration (TIGTA), by telephone. TIGTA can be reached at 1-800-366-4484. TIGTA will inform you of where to send the case.

      Note:

      Form 4652Assault, Threat of Assault, or Harassment Report is now obsolete.

    4. For cases in Notice Status 02, input delay C01 using CC ASGNI, see IRM 2.4.27-5, ASGNI/ASGNB Input Display—Single and Batch. To accelerate to Automated Collection System (ACS), see IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer).

    5. For cases in TDI Status 03, enter a history item on Integrated Data Retrieval System (IDRS) or Account Management Services (AMS) indicating the case was sent to TIGTA.

    6. If the account is on ACS, input history code, TOR1,60,TIGTA.

    7. Once TIGTA's investigation is completed a determination will be made, and the employee through their Director will be informed of the disposition of the case in a memo.

    8. If TIGTA states this isn't a threat, then continue working the case appropriately.

    If the taxpayer indicates in correspondence they refuse to file a return or provides information based on claims of a frivolous return,

    Note:

    Refer to IRM 4.10.12.1.1, Frivolous Arguments, for definitions of frivolous arguments.

    Account is in Notice Status 02 or TDI Status 03,
    1. Input Transaction Code (TC) 595 cc 082 for Compliance Services Collection Operation (CSCO) and Accounts management (AM) or
      TC 595 cc 032 for ACS/ACSS and,
      refer to:
      Ogden Compliance Services
      ATTN: FRP, m/s 4450
      1973 N. Rulon White Blvd.
      Ogden, UT 84404

    2. Document AMS of all pertinent information.

    3. If account is on ACS, enter history code "TOR1,30,CMNTS " .

    4. Notate on correspondence "Previously seen by Collections (CSCO or ACSS)" before routing.

     
    Taxpayer is on the telephone and refuses to file a return or gives information based on frivolous claims. Account is in Notice Status 02 or TDI Status 03,
    1. Inform the taxpayer they need to file a return or provide the information in writing.

    2. For cases in Notice Status 02, input delay C08 using CC ASGNI see IRM 2.4.27-5 , ASGNI/ASGNB Input Display—Single and Batch To accelerate to ACS, see IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer).

    3. Document AMS with all pertinent information.

    4. If the account is on ACS, enter history code "TOI7,30,CMNTS " .

     
    Select Code (SC) 02 or 92, Intentionally left blank See IRM 5.19.2.5.2.2, Select Code 02 Responses.  
    Open CI control or TC 914. Account is in Notice Status 02,
    1. Input delay "C08" using CC ASGNI .

    2. Route notice to Criminal Investigation (CI) Branch.

    3. Document AMS indicating the case was sent to CI.

    4. If CI returns the case, resolve through correspondence.

      Note:

      DO NOT call the taxpayer.

     
    Account is in TDI Status 03.
    1. Document AMS indicating the case was sent to CI.

    2. If the account is on ACS, enter history code "TOR3,60,CI or TC 914" .

    3. Route to CI Branch.

    4. If CI returns the case, resolve through correspondence.

      Note:

      DO NOT telephone the taxpayer.

     
  2. If the taxpayer is liable and there is an indication of fraud, determine the extent of the delinquency (periods and amounts). Refer the case to CI, See IRM 25.1.3.2, Preparation of Form 2797.

    Caution:

    Do NOT give advice about what to do, and do NOT solicit the return. If on the telephone, terminate the conversation. Enter into comments all information pertinent to the processing of the case.

  3. For indicators identifying potential fraud cases, see IRM 25.1.7.2, Pre-screening Non-filers and/or IRM 25.1.2.3, Indicators of Fraud

    • See IRM 25.1, Fraud Handbook, for referral procedures.

    • When the case is returned from CI, process per CI instructions.

  4. When taxpayer sends a Balance Due (BD) Notice as proof a return has been filed, see IRM 5.19.2.5.4.6.10, IMF Response Taxpayer Previously Filed Return .

  5. Route Power of Attorney (POA) Form 2848 or other tax authorization to the Centralized Authorization File (CAF) Team. See IRM 21.3.7.1.3, CAF Processing Sites (CAF Function).

    Note:

    A non-deployed spouse can represent as a POA for their deployed spouse in the military as long as she/he completes a Form 2848 .

  6. When the taxpayer requests a visit from an IRS representative, attempt to resolve the case. If you are unable to resolve the case, see IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer).

  7. A bankruptcy stay does not prohibit securing information from the taxpayer or sending the taxpayer information for the sole purpose of securing a return. If a return is secured, send a photocopy to the appropriate Insolvency/Bankruptcy area.http://serp.enterprise.irs.gov/databases/who-where.dr/inslvncy-bnkrptcy/national_insolvency_field.htm, input and edit return with a TC 599 closing code (cc) 92/42 and continue with processing per IRM 5.19.2.6.4.5.12, IMF Response with Original Return.

    Note:

    If other pertinent information is received without a return, send it to the appropriate Insolvency/Bankruptcy area.

5.19.2.5.4.2.1  (01-16-2015)
Combat Zone IMF Procedures

  1. This section provides procedures and guidance for working combat zone accounts. Section 7508 postpones the time for performing time-sensitive acts, such as filing tax returns or paying tax for the period of time that Section 7508 applies, plus 180 days. The IRS generally will not assess income tax or charge any penalty/interest during the postponement period. The IRS generally will cease all enforcement activities during the postponement period. Section 7508 applies to individuals in the following circumstances:

    • Individuals serving in the Armed Forces in an area designated by the President of the United States as a combat zone for purposes of Section 112, or serving in support of such forces.

    • Individuals serving in support of the Armed Forces in an area designated by the Secretary of Defense as a contingency operation.

    • Individuals serving in the Armed Forces in a qualified hazardous duty area.

      Note:

      See IRM 5.19.1.4.9 , Military Deferment , IRM 5.19.10.6, Combat Zone Accounts and Publication 3, Armed Forces' tax guide, for procedural guidance. Also, refer to IRS.gov for additional information regarding Combat Zone issues (search item: Combat Zone).

  2. Transmission of combat zone data from the Department of Defense is posted to the taxpayer's account(s). These transactions will have a unique DLN of "28277-999-99999-X" and are shown on CC IMFOLE. Combat Zone accounts are also identified during processing of a tax return where the taxpayer has identified by documenting with: Serving Desert Storm/Shield, Bosnia, former Yugoslavia, Allied Force, Afghanistan, or Enduring Freedom. On these self-identified cases, a TC 500 will post to CC IMFOLE and not on a tax module. There will be a computer Condition Code "K" or "Z" .

    Note:

    See IRM 3.12.3–4, Computer Condition Codes, for additional guidance regarding the Condition Codes and processing.

  3. The account modules will have a -C freeze showing and will have the following transaction and closing codes on the module that provide the entry and exit dates within the combat zone:

    • TC 500 with closing code 052 (entry date) or closing code 053 (exit date) = Desert Storm

    • TC 500 with closing code 054 (entry date) or closing code 055 (exit date) = Bosnia

    • TC 500 with closing code 056 (entry date) or closing code 057 (exit date) = Enduring Iraqi Freedom

      Note:

      If the taxpayer contacts us, assist them with their issues. Inform them with Letter 2761C they are not required to file a return while in the combat zone and will be given at least an additional 180 days after they exit the combat zone to file their current year and any delinquent returns.

  4. As of January 2008, TC 598 cc 070 will systemically be input on the module upon the input of TC 500 with the above closing codes. The TC 598 cc 070 closes the account during the administrative relief period. The module will be identified on IDRS with a -C freeze code, and will not be indicated on Integrated Collection System (ICS), ACS, Automated Substitute for Return (ASFR) systems or inventory.

    Note:

    If a -C freeze is present on the account and Combat indicator on CC IMFOLE is "1" , no "new" RD notices will generate, so the input of a delay is not required.

  5. For taxpayer's who have self identified, see IRM 5.19.10.6.5.1 , Combat Zone IMF Procedures, for more information.. Do not input TC 598 cc 070 on the module as a systemic TC 598 cc 070 will post to master file after the TC 500 posts. Once the TC 598 cc 070 posts, it will remove the account from system or inventory.

    Note:

    Use REQ 77 on CC TXMOD to input.

  6. When a taxpayer is no longer in the combat zone or -C freeze was set in error, the freeze can be resolved using procedures per IRM 5.19.10.6.5.1 , Combat Zone IMF Procedures.

5.19.2.5.4.2.2  (01-16-2015)
IMF Procedures for Field Assistance Employees

  1. For all Field Assistance (FA) employees working Return Delinquency IMF cases with a taxpayer in a field assistance office, you will follow the procedures below:

    • If you are an Individual Taxpayer Advisory Specialist (ITAS) with an 809 book assigned to you, and any criteria throughout the IRM for 5.19.2 is met to enter any transaction codes and history items, you will prepare a Form 4442 with the required information for all modules in Notice Status 02 or TDI Status 03. You must secure managerial approval and send the Form 4442 to the appropriate employee within your site for the actual inputs.

    • If you are an ITAS that is not assigned an 809 book, and criteria throughout this IRM is met, enter transaction codes and history items when applicable.

    • No ITAS employees will issue any of the RD letters required throughout the IRM for all modules in Notice Status 02 or TDI Status 03.

    • For all modules in Notice Status 02, if you are assigned an 809 book, you would include this information on the Document 4442 you have prepared.

    • For all modules in TDI Status 03, all ITAS employees will document any required comments or history codes on ACS, AMS , as appropriate. If you are assigned an 809 book, you would include this information on the Form 4442 you have prepared.

    • ITAS employees will document Levy Sources on IDRS per stated in IRM, as appropriate. If you are assigned an 809 book, you would include this information on the Form 4442 you have prepared.

    • If you are answering the taxpayer with a written or telephone response – Field Assistance employees working collection cases in Notice Status 02 or TDI Status 03 will set deadlines that are reasonable and appropriate for filing returns.

  2. When securing a return or resolving an open RD account, FA employees will use the following codes to close the module:

    TC 599 cc 024 Non taxable return
    TC 599 cc 024 Unassessible (Bankruptcy)
    TC 599 cc 024 Return Compliance Program
    TC 594 cc 022 Return previously filed
    TC 594 cc 023 Filed as spouse on joint return
    TC 590 cc 021 Income below FR
    TC 591 cc 020 All other cases no longer liable

5.19.2.5.4.3  (01-16-2015)
IMF Examination Referrals

  1. Use this section to determine how to resolve taxpayer responses when the account has indications of Exam activity.

  2. Research Audit Information Management System (AIMS) using CC AMDIS.

    • If no data is available, see IRM 5.19.2.5.4.6.11, IMF Response Insufficient.

    • If IDRS indicates an open examination case (TC 420 on notice or related module, -L freeze, or AIMS shows an open case) and AIMS status is 09 or more, route case to Examination, Classification Section. If sending a tax return, use overnight express to send to the appropriate Exam office, see note below. Input TC 595 cc 032/082 using CC FRM49 and input AMS comments as appropriate.

      Note:

      To find the correct Examination office, check AIMS for the 3-digit Primary Business Code (PBC), then check SERP under Who/Where, click on Exam Employee Group Code (EGC) Contacts and find the appropriate PBC office and address of that office.

    • If open TC 420 and AIMS status is 08 or less, work the response or return as appropriate per procedures throughout the IRM.

    • If AMDISA indicates a Status 90, which means the case is closed, do not send to Exam even if a -minus L freeze or open TC 420 exists. Work the response or return as appropriate per procedures throughout the IRM.

  3. If the case is returned by Exam with the TC 420 reversed with a TC 421, see IRM 5.19.2.5.4.6, IMF - Determining Liability.

    Note:

    For Notice Status 02 cases that are not closed as taxpayer not liable, accelerate to TDI Status 03 by inputting a delay "C01" .

  4. When working a transcript created by a TC 595 without a posted return, and the TC 595 was input in error, continue processing in IRM 5.19.2.5.8.2, Resolving TDI Research (TC 594/599) Transcripts.

5.19.2.5.4.4  (01-16-2015)
IMF Automated Substitute for Return Program (ASFR) Referrals

  1. The ASFR program was developed to systemically promote compliance with taxpayers who have not filed tax returns voluntarily and for whom income information is available to substantiate a significant income tax liability without costly field investigation. The purpose of this program is to assess the tax liability and promote compliance by either:

    • Securing a valid voluntary income tax return from the taxpayer.

    • Computing tax, interest and penalties based upon Information Return Program (IRP) documents submitted by payers, or other internally available information.

  2. The RD notices (CP 59/516/518) inform the taxpayer the IRS can prepare a substitute return, if a return is not filed. Cases selected with ASFR select codes receive a CP 59 and CP 518 (or 759/618) notice and then are automatically assigned to ASFR.

    Note:

    For account modules in Notice Status 02 or TDI Status 03 (Combo cases), if correspondence from the taxpayer states to go ahead and prepare their return per the substitute for return warning in an IRS notice, when answering the taxpayer with written correspondence advise as follows: "This program uses the highest tax rates with no deductions allowed. Interest and penalties accrue from the original due date of the return until the substitute for return is processed and the account is paid in full. So it is in their best interest to prepare and file a return on their own, and pay any balance due as soon as possible" . For elderly taxpayers who need help in preparing a return, recommend they visit IRS.gov , AARP or TCE (Tax Counseling for the Elderly).

  3. Return delinquency modules that do not meet ASFR criteria include accounts listed below:

    • Beginning January 2013, ACS will block TFRO, AOTO8000 for International accounts.

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

    • No IRPTRJ data is present

    • Any module has a freeze code of -Z, -V, -W, -L and Z-.

    • The select code is CI (01) or IRS Employee (02).

    • Any combo case with a balance due module regardless of status, including Status 53 and Status 60.

    • The only tax year is older than six years from the current calendar year .

      Example:

      The period for calculating starts with the due date of the most recent tax return due and the previous five years. As of April 15, 2014, which is the due date for the 2013 return and the prior five years will be TY - 2012, 2011, 2010, 2009 and 2008.

      Note:

      For additional information regarding creating a module see IRM 5.19.2.3, Manual Creation of a Return Delinquency Module (IMF Only). Current processing year modules will not be manually created, for example; Do not create an RD module for tax year 2011 before November 15th of calendar year 2012.

    • Cases with 60 or more documents, assign the case to the Queue.

      Note:

      If one module has 61 or more documents and another module is below 61 documents, still assign the account to the Queue.

  4. Once IDRS/CFOL research has been completed, for stand alone Status 03 TDI(s) with IRPTR data available and there are less than 60 documents, use CC ASGNI 8000 to assign to ASFR.
    If the account is on ACS, enter history code "TFRO,,AOTO8000" .

    Note:

    Area assignment (AOTO) can be located on ACSWeb.

  5. If working a return delinquency response and research indicates ASFR criteria as listed below refer to the nearest ASFR location in your BOD. ASFR criteria is as follows:

    • TC150 for .00 with literal SFR next to it (initial return assessment), with tax-class 2 and Doc Code 10 in the DLN (Refer to Document 6209).

      Note:

      The DLN Julian date will be 887. If the DLN Julian date is 888, the module is an Exam SFR.

    • Blocking series 000-299. (Refer to Doc 6209.)

    • No AGI listed.

    • TC 599 with cc 088, indicates no response to the previous ASFR notifications.

      Note:

      Send the case to your Consolidated ASFR Recon Site if all the following transaction codes (TC 150 for .00, TC 494, TC 495, TC 290 and TC 599 cc 088 are present. You can find routing information for ASFR Reconsideration returns on SERP Who/Where ASFR - Reconsideration Returns - Centralized Processing Sites.

    • TC 599 with cc 089 indicates taxpayer filed original return.

      Note:

      If the response is a return or amended return and the module was closed with a TC 29X and/or TC 599 with a cc 089, and the tax on the return does not match the tax posted to IDRS, route the return to the local AM only if the Assessment Statute Expiration Date (ASED) is not expired. If ASED is expired, send a disallowance Letter 916C , Claim Incomplete for Processing; No Consideration, and document AMS comments appropriately.

    • TC 599 with cc 013 indicates taxpayer agreed to the proposed assessment.

      Note:

      If the response is a return or amended return and the module was closed: Send the case to your Consolidated ASFR Recon Site if all the following transaction codes (TC 150 for .00, TC 494, TC 495, TC 290 and TC 599 cc 013 are present. You can find routing information for ASFR Reconsideration returns on SERP Who/Where ASFR - Reconsideration Returns - Centralized Processing Sites.

5.19.2.5.4.5  (01-16-2015)
Backup Withholding - C (BWH-C) Inquiries

  1. Use this section to resolve BWH-C inquiries only. Refer to other IRM sections to resolve all other issues prior to referral.

  2. If the Backup Withholding Indicator (BWI) is on the module (TXMOD), refer to IRM 5.19.3.4.2.11, "C" BWH Procedures. If the BWI is shown as "2" and any of the following conditions exist, forward the information via Form 4442 to the appropriate BWH unit for your BOD per the information in paragraphs #3, #4 & #5 below:

    • Taxpayer is deceased.

    • Account is closed "Not Liable" , "Refund Due" , or "Little or No Tax Due" .

    • The return has been previously filed, but posted to another module (e.g. filed joint with spouse, filed on an incorrect TIN, filed with an incorrect name [entity problem]).

    Note:

    Only send the information to the BWH unit to make a determination to close BWH-C or not. You must work all the RD issues.

  3. For W&I campuses send the Form 4442 or Correspondence to:
    Internal Revenue Service
    Stop 5000 P-4
    333 W. Pershing Road
    Kansas City, MO 64108-4302

  4. For SB/SE campuses send the Form 4442 or Correspondence to:
    Internal Revenue Service
    Mail Stop 4-N-31.142
    2970 Market St.
    Philadelphia, PA 19104

  5. For International SBSE Backup Withholding issues, send the Form 4442 or Correspondence to :
    Internal Revenue Service
    Mail Stop 4-N-31.143
    2970 Market St.
    Philadelphia, PA 19104

5.19.2.5.4.6  (01-16-2015)
IMF - Determining Liability

  1. This section will provide guidance on determining if the taxpayer is liable to file a delinquent return, with the goal to resolve contact issues (correspondence or telephone calls) timely and accurately to prevent subsequent notices and/or TDI issuances. If necessary, refer them to their local office for assistance. (e.g. Taxpayer Assistance Centers (TACs), Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), American Association of Retired Person's (AARP)). See IRM 21.3.4.2, Standard Services and Taxpayer Assistance, for guidance. If necessary, send blank forms to the taxpayer to file the delinquent return(s), or refer the taxpayer to the IRS web-site, http://www.irs.gov. When responding to taxpayer via correspondence, refer to IRM 21.3.3.1.1, Policy Statement P-21-3 (formerly P-6-12), for guidance.

  2. When the taxpayer provides a telephone number on a response to a CP notice, tax return or RD correspondence, update the taxpayer's account with the new telephone number . If the area code is not available research for area code on SERP under the Who/Where tab, click on Time Zone & Area Code by Zip, State or City .

  3. To research RD filing requirements by specific Select code refer to Document 6209

  4. To identify modules meeting High Income Non Filers criteria see IRM 5.19.2.7, High Income Non Filer Process (HINF) for additional guidance.

    Note:

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

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

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

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

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

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

      Note:

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

    ≡ ≡ ≡

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

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

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

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

    Exception:

    "AM " employees should create a Form 4442 referral to RD function when a case creation is required to be done.

  7. If a potential RD module exists based on the information above, continue to follow procedures below to determine liability. Annotate AMS of actions taken, as appropriate.

    Note:

    Employees should address under-withholding as part of the full compliance check and consider referring taxpayers to the Withholding Compliance (WHC) unit, when appropriate. See IRM 5.19.11.1, Withholding Compliance Program, for additional information. Refer to IRM 5.19.11.6.1.1, Referral Criteria if there is an indication of a WHC issue.

  8. Conduct complete research to resolve all RD issues on contact, including research of all cross reference TIN’s .

    Note:

    When corresponding with the taxpayer, send one letter to address multiple years.

    If ... And ... Then ...
    Module is in Status 06 (closed with a TC 593, 597, or 598) taxpayer is liable to file Input a TC 592 to reverse the TC 593, 597 or 598 to place the module back in Notice SC 02 or TDI Status 03.

    Exception:

    If the RD module was closed with TC 598 cc 032/082, then refer to procedures in IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable

    Note:

    Work these types of cases based on the status the module was in when the TC 593, 597 or 598 was entered (i.e. Notice 02 or TDI 03).

    Taxpayer has an open Refund Hold (RH) module (i.e. TC 570, 999 in the Julian Date field in the document locator number digits 6, 7 and 8 and an RF reason code and -R freeze) Refund hold notice CP 63 (CSCO) or CP 88 (Exam) or Letter 2825C has been issued Inform the taxpayer the refund is being held because there are delinquent return(s) that need to be filed.
    Taxpayer has an open Refund Hold (RH) module. Taxpayer is inquiring about the held refund Refer the taxpayer to the RH toll-free number at 1-866-897-3315, see IRM 25.12.1.6, Taxpayer Notification of Refund Hold

    Note:

    Letter 2825C is only used to reissue notification for undeliverable CP notices.

    Necessary Left blank intentionally Send Income information (via IDRS CC IRPTRW or TDS) to the taxpayer to file the delinquent return(s).
  9. Whether the taxpayer should file a return depends on:

    • Gross income (Gross income includes all income received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside of the United States, even if you exclude part or all of it.)

    • Age

    • Filing Status

  10. IDRS CC "IRPTR" screen indicates the type and total income reported to the IRS for the taxpayer. See IRM 5.19.2.4.1, IRP Income, for definitions of IRP income to help determine what income is taxable.

    Note:

    If the final page of IRPTR shows deferred compensation under other income, subtract from taxable income.

    Note:

    You can accept the total expenses or cost basis from the taxpayer via the telephone or in correspondence (without a return) to compute the total tax and determine if the tolerance amount was met for minimal tax due. IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due. If the income is Non Employee compensation, they should file a tax return.

  11. Use IDRS Command Code IRPTRJ to determine the taxpayer’s potential liability or if they meet "Little or No Tax Due" , "Income Below Filing Requirements" , "Refund Due" or "Not Liable" .

  12. If filing information is not provided by the taxpayer, use the last return filed, if within the last six years. Use FS 1 "single" or FS 3 "married filing separate" , if the taxpayer was married on their last return filed, and one exemption,.

    Note:

    For all HINF select codes, if unable to verify income, see IRM 5.19.2.7.5, HINF - Taxpayer Claims Not Liable, Refund Due or Little or No Tax Due.

  13. When you are on the telephone with the taxpayers and you are asking them for income and expenses for the delinquent tax year, to determine if the taxpayer is liable to file, remember to:

    • Ask about all income received for the year: wages (including taxable fringe benefits), interest, dividends, stock sales, and self-employment income (for both the taxpayer and spouse if married filing joint return).

    • Ask for filing status, number of exemptions and approximate withholding or credits.

    • For reported IRP income from non-employee compensation over $400, we will always request the taxpayer for the return, even if you are closing the module under Exhibit 5.19.2-2, Policy Statement P-5-133 (e.g. Little or No Tax).

    • For reported IRP income from stock sales that put the taxpayer’s total income above filing requirements, we will always ask the taxpayer for a return to show the costs associated with the stocks, even if you close the module under Exhibit 5.19.2-2, Policy Statement P-5-133 (e.g. Little or No Tax).

  14. Follow procedures in the paragraphs below as guidance when talking to a taxpayer:

    If ... Then ...
    You determine the taxpayer is required to file a tax return
    • Instruct them to complete the required return. Ask them to :

      1. Sign

      2. Date

      3. And include current address

    • Provide them with the appropriate IRS CSCO (SC 02) or ACSS (SC 03) return address to mail the return. For W&I Compliance Services or SB/SE Compliance Services or CSCO’s mailing addresses, Exhibit 5.19.2-4, CSCO Non-Filer Campus Addresses. These addresses can also be found through SERP, Who/Where, campus program locator guide.

    • Document AMS comments as appropriately.

    Taxpayer states they had expenses (i.e. against business income) or a cost basis (i.e. against stock sales) that lowers their total income
    • you can accept this information via the telephone or in correspondence (without a return) "ONLY" to compute the potential total tax liability and determine if there is a Refund Due or the tolerance amount was met for "Minimal" or "No" tax due per Policy Statement P-5-133.

    • Inform the taxpayer they are still required to file a return if determination shows a refund due, see IRM 5.19.2.5.4.6.2, IMF Refund Due, or Minimum or Little or No Tax Due , see IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due

    Note:

    If a taxpayer does not file a return to show losses or gains from business income, we could be affecting their benefits when they retire.

    Taxpayer states the income wasn't theirs Research the reported IRP income as follows:
    • Research prior year returns to see if the income has been previously claimed,

    • Check if any wages were possibly earned in another city or state as someone else could be using the taxpayer's SSN,

      Note:

      If it is determined the income is not the taxpayer's, See IRM 5.19.2.6, Identity Theft Procedures.

    • Research other account modules if they state the income was earned by a spouse or other family member (parent, children), or claimed on a business return, to see if the income was claimed.

    Research indicates you cannot verify income was reported on another return Ask the taxpayer to provide a copy of the return where the income was reported.
    Cannot find any information through research to show income is definitely the taxpayer's Subtract the income when determining the taxpayer's liability.

    Note:

    For all HINF Select Codes if unable to verify income, see IRM 5.19.2.7.2, HINF- IRP Incorrect.

    Taxpayer inquiry is dealing with Mortgage Interest (Sel 88 or 89) See IRM 5.19.2.5.4.6.15, IMF Response Select Code 88 or 89 Mortgage Interest, for appropriate procedures.
  15. Follow procedures in the paragraphs below as guidance when working taxpayer responses:

    If ... Then ...
    Taxpayer is liable and has not filed, Taxpayer is Liable to file, See IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable
    Taxpayer's response indicates they "will file " (Correspondence Only) See IRM 5.19.2.5.4.6.9 , IMF Response Taxpayer Will File (Correspondence Only)
    Taxpayer's response indicates they are "unable to file" See IRM 5.19.2.5.4.6.14, IMF Response Taxpayer Unable to File
    Taxpayer is not liable:
    Income is below filing requirements (FR) or previously filed,
    Taxpayer's response indicates not liable to file and research shows they are not liable See IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements)
    Taxpayer states they have previously filed this return See IRM 5.19.2.5.4.6.10, IMF Response Taxpayer Previously Filed Return
    Taxpayer may receive a refund if a return is filed, See IRM 5.19.2.5.4.6.2, IMF Refund Due.
    Little or no tax due. See IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due.
    If a correspondence is received informing us the income belongs to a "minor" child and was claimed on a parent's return Verify the filing of the parent’s return and verify the minor’s income was included. If income is included whether the income (earned or unearned) exceeds the minor to file under their own SSN
    1. Close the minor’s module with TC 594 cc 033/083

    2. Input AMS comments

    3. Send a closing letter or appropriate letter indicating that, if in future years, the minor’s income (unearned or earned) exceeds the amount to be claimed on the parent’s return, the minor must file their own return.

    4. Refer them to Pub 929, Tax Rules for Children and Dependents, for additional information.

    Taxpayer is indicating why they don't have to file on Mortgage Interest (Sel 88 or 89) See IRM 5.19.2.5.4.6.15, IMF Response Select Code 88 or 89 Mortgage Interest, for appropriate procedures.

    Note:

    The above references is not inclusive to working all IMF responses, as there are many IMF subsections within this IRM that can fall under each of the above.

    Reminder:

    Address modules not in an open RD status by annotating AMS comments only, as appropriate.

  16. ACSS employees, if there is " no reply" from Letter 2269C :

    And Then
    Taxpayer's income meets ASFR criteria, See IRM 5.19.2.5.4.4, IMF Substitute for Return Program (ASFR) referrals.
    Taxpayer's income meets Little or No Tax due criteria, See IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due.
    Module does not meet ASFR criteria, Close the account as Unable to Locate or Unable to Contact. See IRM 5.19.2.5.6, Unable to Locate, or see IRM 5.19.2.5.6.1, Unable to Contact.
    Account does not meet any of the above criteria. Assign the account to the Queue.

5.19.2.5.4.6.1  (01-16-2015)
IMF Response Taxpayer Not Liable (Income Below Filing Requirements)

  1. Use this section to resolve delinquencies that are "Not Liable" .

  2. If the taxpayer's income is below Filing Requirements (FR) or a Refund Due return that the statute of limitation has expired, follow the guidelines below.

    Note:

    For HINF select codes, see IRM 5.19.2.7.5, HINF - Taxpayer Claims Not Liable, Refund, or Little or No Tax Due.

    If Then
    For CSCO and AM Employees
    1. Input TC 590 cc 076 using CC FRM49.

    2. Send a closing Letter 2358C or other appropriate letter indicating not liable to file for the tax year in question.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

    3. Document AMS of action(s) taken.

    4. If the taxpayer states they are a victim of Identity theft, see IRM 5.19.2.6, Identity Theft procedures, for guidance.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591, or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For ACS and ACSS Employees,
    1. Input TC 590 cc 026 using CC FRM49.

    2. Send a closing Letter 2358C or other appropriate letter indicating not liable to file for the tax year in question.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

    3. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND " . "When closing a combo UTC account per IRM 5.19.2.5.6.1, Unable to Contact, and the account has already been reassigned to TOC0 or TOS0, then use "OADT,30,RDPND" ."

    4. Document AMS of action(s) taken.

    5. If the taxpayer states they are a victim of Identity Theft, see IRM 5.19.2.6, Identity Theft Procedures for guidance.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591, or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For FA Employees.
    1. Input TC 590 cc 021 using CC FRM49.

    2. Send a closing Letter 2358C or other appropriate letter indicating not liable to file for the tax year in question.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

    3. If the account is on ACS, enter History Code "TOC0,21,RDPND" or "TOS0,21,RDPND" .

    4. Document AMS of action(s) taken.

    5. If the taxpayer states they are a victim of Identity Theft, see IRM 5.19.2.6, Identity Theft Procedures, for guidance.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures prior to closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    Note:

    If the RD account(s) is Not Liable and the taxpayer is asking for an installment agreement (IA) or CNC to resolve their outstanding liability, follow directions in IRM 5.19.1, Balance Due

5.19.2.5.4.6.2  (01-16-2015)
IMF Refund Due

  1. Once an account has been determined to be a "refund due" as described in IRM 5.19.2.5.4.6, IMF Determining Liability , then use this section to resolve the account.

    Note:

    If the statute of limitation has expired to receive a refund, follow procedures in IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).

    Note:

    For HINF select codes, see IRM 5.19.2.7.5, HINF - Taxpayer Claims Not Liable, Refund, or Little or No Tax Due.

    If Then
    For CSCO and AM Employees,
    1. Advise the taxpayer to file the return. Advise taxpayer of the statue of limitations for receiving a refund. See IRM 25.6.1.8, Original Delinquent Return, for additional guidance on refund.

    2. Input TC 590 cc 078 using CC FRM49.

    3. Document AMS and to support action(s) taken provide:

      • Filing Status

      • Number of exemptions

      • Taxable income or refund due

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For ACS and ACSS Employees,
    1. Advise the taxpayer to file the return. Advise taxpayer of the statute of limitations for receiving a refund IRM 25.6.1.8, Original Delinquent Return, for additional guidance.

    2. Input TC 590 cc 028 using CC FRM49.

    3. Advise taxpayer of the statute of limitations for receiving a refund.

    4. Document AMS and to support action(s) taken provide:

      • Filing status

      • Number of exemptions

      • Taxable income or refund

    5. If account is on ACS, enter history code "TOC0,30,RDPND " , or "TOS0,30,RDPND" .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For FA Employees.
    1. Advise the taxpayer to file the return.
      See IRM 25.6.1.8, Original Delinquent Return, for additional guidance on refund.

    2. Input TC 590 cc 020 using CC FRM49.

    3. Advise taxpayer of the statute of limitations for receiving a refund.

    4. Document AMS to support action(s) taken provide:

      • Filing status

      • Number of exemptions

      • Taxable income or refund.

    5. If account is on ACS, enter history code "TOC0,21,RDPND" or "TOS0,21,RDPND" .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    Note:

    If the RD is a Refund Due and the taxpayer is asking for an installment agreement (IA) or CNC to resolve their outstanding liability. Once the closing action has been taken to close the refund module, follow directions in IRM 5.19.1, Balance Due.

  2. If the taxpayer states they have a refund but our calculations do not indicate refund due, see IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due or see IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable.

5.19.2.5.4.6.3  (01-16-2015)
IMF Little or No Tax Due

  1. Policy Statement P–5–133 of IRM 1.2.14 ,Policy Statements for Collection Process, allows closing delinquent modules without enforcement action even when a return is due if it meets certain criteria.

  2. This criteria is:

    1. There is minimal tax due.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

    2. There is no tax due on the delinquent return(s).

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

      Note:

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

  3. Use IRPTRJ (if IRPTRJ is not present, then use available tools), for the tax year in question, to help determine if the taxpayer’s reported income is taxable and to help compute the amount of tax due. See IRM 5.19.2.4.1 , IRP Income, for definition of IRP income documents.

    Note:

    Always close cases meeting criteria for Not Liable (Income Below Filing Requirements) or Refund Due before closing as "Little or No Tax Due" .

  4. Research is necessary to determine if the taxpayer is considered a "Stop Filer" prior to closing under criteria "minimum tax due" . Do not consider closing a "Stop Filer" as a "minimal tax due" closure unless the taxpayer has provided information stating their only income is what is reported via IRP documentation. . The IRP documents alone cannot be used as the basis for this type of filer.

    Note:

    Stop Filers are taxpayers who filed in the year immediately preceding the year of the Return Delinquency module. To identify these taxpayers use IDRS cc TDINQ or cc IRPTRJ to research the Copy Score. This is a four digit field on page 1 of the TDINQ page shown as "COPYS - ####" . If the first digit is 2, or 4, or 6, or 8 (no matter what the select code is), this is a Stop Filer. Some Stop Filers may have income from Business, Rental, Farm Income, or other non reported IRP income.

    Note:

    For all Non "Stop Filers" modules, check CC TRDBV or RTVUE to view the last return filed (not more than six years from the current tax year) to see if the taxpayer reported any Non-IRP income (i.e. business income above any IRP reported income, rental income, farm income, etc.). It is only necessary to verify the last return filed and if the income above is present do not close as "Little or No Tax Due" or "Minimal Tax Due" .

  5. If determined the module meets the criteria to close per paragraph 2 above, follow the table below for guidance:

    Note:

    The below procedures are not necessary if closing the module over 6 years old.

    Exception:

    Select Code 02- IRS Employees can not be closed "Little or No Tax Due" .

    Note:

    Managerial approval is not required if "Little or No Tax Due" is determined using IRPTRJ or appropriate tools when IRPTRJ is not available, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Document the tool used and the results in AMS comments.

    If And Then
    Account meets criteria in paragraph 2, For CSCO, and AM Employees,
    1. Send Letter 2269C or other appropriate letter. Request return be filed within 30 days.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

      Note:

      Do not inform the taxpayer the account module is being closed as Little or No Tax Due.

    2. After managerial approval (unless approved tool is used), input TC 590 cc 77 using CC FRM49.

    3. Document AMS to support actions(s) taken and provide:

      • Filing status

      • Number of exemptions

      • Taxable income

      • Tax or refund due

      Note:

      Documentation not required if closing modules over 6 years old.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For ACS and ACSS Employees,
    1. Instruct the taxpayer to file within 30 days then set a 45 day deadline and send a Letter 2269C or other appropriate letter. If the module in question is on ACS, send an LT26 letter, which requests the taxpayer to file the return within 10 days from the date of receipt, unless case is being closed UTC per IRM 5.19.2.5.6.1, Unable to Contact.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

      Note:

      Do not inform the taxpayer the account module is being closed as Little or No Tax Due.

    2. If a credit balance remains on the account, you must follow all credit balance research procedures. before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7 Credit Balance Overview.

      Note:

      If on the telephone with the taxpayer, address the credit balance during the call. For more information, see IRM 5.19.2.5.7.2, Credit Offset or Refund Procedures.

    3. Document AMS to support action(s) taken and provide:

      • Filing Status

      • Number of exemptions

      • Taxable income

      • Tax or refund due

      Note:

      Documentation not required if closing modules over 6 years old.

    4. Verify via IRPTRJ or the appropriate tools, input RD90,27 or input TC590 cc 027 using FRM49, and enter a history code "TOC0,30,RDPND" or "TOS0,30,RDPND" . "When closing a combo UTC account per IRM 5.19.2.5.6.1, Unable to Contact, and the account has already been reassigned to TOC0 or TOS0, then use "OADT,30,RDPND" "

    5. If managerial approval required, enter history code to assign to Manager inventory requesting closing actions, "TOC0,05,590027" or "TOS0,05,590027 " .

    6. After managerial approval (unless approved tool is used), input TC 590 cc 27 using CC FRM49 on IDRS or enter history code on ACS, "OADT,30,590027 " .

      Note:

      Managers in ACS or ACS Support will approve by entering ACS history code OADT,30,5133APP, but also have the option to approve by entering history code RD90,27 or to send the case back to their employee to input the transaction on IDRS per above. On the ACSWeb history code screen, select the grey button next to the history code entry field to enable entering a history code not in the drop down menu.

    For FA Employees.
    1. Contact the taxpayer via correspondence (Letter 2269C ), by telephone, or in a face to face meeting and request return(s) for all delinquency tax year(s).

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

    2. Set a deadline of 30 days from the day you close the case.

    3. Input TC 590 cc 020.

      Note:

      Do not tell the taxpayer the account module is being closed as Little or No Tax Due.

    4. If a credit balance remains on the account, you must follow all credit balance research procedures. before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.4.6, IMF - Determining Liability.

    5. Document AMS with filing status, number of exemptions, taxable income, tax or refund due to support action(s) taken, including the deadline date.

      Note:

      Not required if closing modules over 6 years old.

    6. If on ACS, enter history code "TOC0,05,590020" .

    Account does not meet criteria. Intentionally left blank See IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable.
  6. All cases closed with Little or No Tax Due must be approved by a manager or lead, only if IRPTRJ or approved tools were not used, refer to Note in paragraph 5 above.
    Exception: Closures over 6 years old do not require managerial approval, or AMS documentation of tax computation.

    • For Non-ACS AMS users, a narrative must be added stating this was approved. The narrative can be entered by the employee or management.

    • For ACS employees you must enter all case actions in a narrative on AMS, including the case was sent for management approval and enter appropriate ACS History Codes. A checklist on AMS may be used to generate the narrative. ACS SBSE management must use appropriate ACS History Codes and are not required to enter an additional narrative. W&I management must use appropriate ACS History Codes and are required to enter an additional narrative in AMS stating they approved or disapproved the closure.

  7. For all identified HINF Select Code modules, see IRM 5.19.2.7.5, HINF - Taxpayer Claims Not Liable, Refund, or Little or No Tax Due.

    Note:

    If the RD is a Refund Due and the taxpayer is asking for an installment agreement (IA) or CNC to resolve an outstanding liability, follow directions in IRM 5.19.1, Balance Due

5.19.2.5.4.6.4  (01-16-2015)
IMF Taxpayer Liable

  1. This section provides general guidance for determining actions needed when tax module(s) are identified as “liable to file”.

  2. For all HINF cases, see IRM 5.19.2.7.4, HINF - Taxpayer Contact.

  3. If it is determined a taxpayer may be a victim of identity theft, see IRM 5.19.2.6, Identity Theft Procedures for additional guidance.

  4. If the taxpayer is liable, determine the period(s) of delinquency. If the RD module can be closed Little or No Tax Due see IRM 5.19.2.5.4.6.3, Little or No Tax Due or taxpayer is due a refund see IRM 5.19.2.5.4.6.2, IMF Refund Due.

    Note:

    FA employees only: When working collection cases set deadlines that are reasonable and appropriate see IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer). When working ICS collection cases, refer those accounts meeting ASFR criteria from ICS. If the case meets ASFR criteria, but cannot be systemically assigned to ASFR on ICS, FA will utilize CC ASGNI 8000 using IDRS. See IRM 5.19.2.5.4.4, IMF Automated Substitute for Return Program (ASFR) Referrals.

  5. If working the RD module and research indicates an associated module(s) is being closed ST 53 cc 24-32 or is already in ST 53 cc 24-32 follow guidance below:

    If... And... Then...
    RD module(s) has an associated balance due that is being closed under hardship (ST 53 cc 24-32), Taxpayer is liable for the unfiled return(s),
    1. Request the return (Letter 2269C or appropriate letter).

    2. Input TC 598 cc 032/082 to shelve the RD module while the balance due account is in CNC (ST 53).

    New RD module(s) appears, Previous balance due module was closed with ST 53 under hardship (cc 24-32) and it has been within 2 years from the date of the CNC,
    1. Request the return (Letter 2269C or appropriate letter).

    2. Input TC 598 cc 032/082 to shelve the RD module while the balance due account is in CNC (ST 53).

    New RD module(s) appears, It has been more than 2 years from the date of the hardship CNC,
    1. Check the ST 53 cc 24-32 closing code threshold amount against the Taxpayer's Positive Income (TPI) on CC IRPTR and if the TPI is above the closing code threshold amount.

      1. Reverse the balance due module with TC 531, and, using TC 592, reverse any TC 598s input on previous RD modules.

      2. Accelerate the RD module(s) to ACS if still in notice SC 02, per IRM 5.19.2.5.1.1, Accelerate and/or Delay to TDI Status 03.

    New RD module(s) appears. It has been more than 2 years from the date of the hardship CNC.
    1. Check the ST 53 cc 24-32 closing code threshold amount against the TPI on CC IRPTR and if the TPI is below the closing code threshold amount.

      1. Request the return (Letter 2269C or appropriate letter).

      2. Input TC 598 cc 032/082 to shelve the RD module while the balance due account is in CNC (ST 53).

  6. If correspondence from the taxpayer requests we prepare the return per the "Substitute for Return" :

    • Send taxpayer a Letter 2269C or appropriate letter

    • Or call taxpayer to inform the ASFR program uses the highest tax rates with no deductions allowed

    • In addition, inform the taxpayer interest and penalties will accrue from the original due date of the return until the substitute for return is processed and the account is paid in full

    • Advise the taxpayer it is in their best interest to prepare and file a return on their own, and to pay any balance due as soon as possible

    Note:

    See IRM 5.19.2.5.4.4, IMF Substitute for Return Program (ASFR) Referrals, for additional guidance.

  7. If you are responding to a taxpayer notice response and the correspondence provided a telephone number, attempt to call the taxpayer before sending a letter to the taxpayer. Document on AMS if a phone attempt was made.

  8. If telephone contact is made, provide the taxpayer with return and mailing instructions . If you are responding via correspondence, follow the guidelines below:

    If ... Then ...
    Account is in Notice Status 02,
    1. Instruct the taxpayer to file within 30 days and set a deadline of 45 days from the day you are closing the case.

    2. Send a Letter 2269C or applicable letter using the appropriate paragraphs to advise the taxpayer that failure to file by the specified date could subject the taxpayer to a fine and/or criminal penalties or a possible "Substitute for Return" processing.

      Note:

      Remind the taxpayer to put their correct and current address on the return, whether it is a copy or an original return.

    3. Document AMS with target date given to taxpayer to file their return.

    4. Input delay "C08" using CC ASGNI. If accelerating the account to ACS, see IRM 5.19.2.5.1.1, Accelerate or Delay to TDI Status 03.

      Note:

      If working a combo case issue, ensure both CC Staup and delay time frames are equal in length.

    Account is in TDI Status 03.
    1. Instruct the taxpayer to file within 30 days and set a deadline of 45 days from the day you are closing the case.
      If the case is on ACS, send a LT26 letter, which will automatically set a 25 day deadline.

    2. Send a Letter 2269C (use LT26 if the account in question is on ACS) or other appropriate letter using the appropriate paragraphs to advise the taxpayer that failure to file by the specified date could subject the taxpayer to a fine and/or criminal penalties and of a possible "Substitute for Return" processing.

      Note:

      Remind the taxpayer to put their correct and current address on the return, whether it is a copy or original return.

    3. Input a history item on IDRS (using CC ACTON "TP2Fmmdd" with mmdd indicating the target date) or enter history on AMS explaining the target date provided to the taxpayer to file their return.

    4. Document AMS of information secured, including the deadline date for filing and warning of enforcement actions.

    5. If the case meets criteria for ASFR, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return Program (ASFR) Referrals.
      If the account is on ACS, input "TOI7,XX,ASFR" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

    6. If the case doesn't meet ASFR criteria, see IRM 5.19.2.5.4.4, IMF - Automated Substitute for Return Program (ASFR) Referrals
      If the account is on ACS, input "TOI7,XX,TFQU" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

    Note:

    When sending correspondence, only provide the taxpayer with missing income information from IRS internal sources as needed or requested.

  9. If you are answering the taxpayer by telephone (Non-ACS or Non - FA Employee), follow the chart below. Provide the taxpayer with return and mailing instructions..

    If And Then
    Account is in Notice Status 02 or TDI Status 03. Intentionally left blank
    1. Determine if the taxpayer has the necessary data and forms to file the delinquent return(s) and provide the information, as needed.

      • Instruct the taxpayer to file within 30 days (allow additional time, if necessary taking into consideration the complexity of the delinquent return(s) and other pertinent circumstances, but no more than 60 days.)

        Note:

        If the taxpayer has the return already prepared, encourage the taxpayer to fax the return. If return is faxed, refer to 13 "note" below.

      • Advise the taxpayer that failure to file by the specified date could subject them to a possible substitute for return processing.

      • Remind the taxpayer to use the correct current address on the return, whether it is a copy or original return.

      • Input a history item on IDRS (using CC ACTON "TPPFmmdd" with mmdd indicating the target date) or enter history on AMS documenting the target date provided to the taxpayer to file their return.

      • If in Notice Status Code (SC) 02, input a delay C08 using CC ASGNI

      • If in TDI Status 03, do not input delay.

      • Document AMS of filing status, number of exemptions, taxable income, tax or refund due to support actions taken that the taxpayer is liable to file, as appropriate.

    The taxpayer states "go ahead and prepare the return" and the module meets ASFR criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return Program (ASFR) Referrals
    • First, advise the taxpayer the following: "We will use the highest tax rates with no deductions, allowing only your personal exemption. Interest and penalties will accrue from the original due date of the return until the substitute for return (ASFR) is processed and the account is paid in full. It is in your best interest to prepare and file your own return and pay any balance due as soon as possible."

    • If in SC 02 and the taxpayer still says go ahead and file their return, then input a delay "C01" to accelerate to TDI status 03, hold the case for one cycle for the module to update, then use CC ASGNI 8000 to assign the case to ASFR.

    • If in TDI Status 03, use CC ASGNI 8000 to assign the case to ASFR.

    • Document AMS of filing status, number of exemptions, taxable income, tax or refund due to support actions taken that the taxpayer is liable to file, as appropriately.

    The taxpayer states to go ahead and prepare their return and does not meet ASFR criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return Program (ASFR) Referrals
    • Advise the taxpayer, the ASFR program is not a voluntary option.

    • Instruct the taxpayer to file within 30 days (allow additional time, if necessary taking into consideration the complexity of the delinquent return(s) and other pertinent circumstances, but no more than 60 days).

    • Input a history item on IDRS (using CC ACTON "TPPFmmdd" with mmdd indicating the target date) or enter history on AMS documenting the target date provided to the taxpayer to file their return.

    • If in SC 02, input a delay C08 using CC ASGNI .

    • If in TDI Status 03, do not input delay.

    Note:

    If also working a balance due issue for the taxpayer, make sure any time frames for STAUP's and delays are equal.

  10. You are answering the taxpayer by telephone or in person at a Taxpayer Assistance Center (TAC) (ACS or FA Employee), and the taxpayer has no Balance Due (BD) modules:

    If And Then
    Account is in Notice Status 02 or TDI Status 03. Intentionally left blank Ask the taxpayer for reasons that the return was not filed (e.g. the taxpayer owed money and could not pay, so they did not file; taxpayer could not find tax records, health/family issues, etc.).
    1. Determine if the taxpayer has the necessary data and forms to file the return(s) and provide data as needed.

      • Instruct the taxpayer to file the return and set a deadline (see table in paragraph 11 below) taking into consideration the complexity of the delinquent return(s) and other pertinent circumstances, but generally not more than 30 days. Enter history code "TOI7,XX,ASFR" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

      • Advise the taxpayer that failure to file by the specified date could subject them to a possible substitute for return processing.

      • Remind the taxpayer to ensure the correct current address is on the return, whether it is a copy or original return.

      • If in SC 02, input a delay C08 (or C01 if another module is in ACS), using CC ASGNI

      • If in TDI Status 03, do not input delay.

      • Provide warning of enforcement actions, see IRM 5.19.1.8 , Warning of Enforcement Action and Enforced Collection.

      • Document AMS of target date to file "TPPFmmdd" (with mmdd indicating the target date), filing status, number of exemptions, taxable income, tax or refund due to support actions taken that the taxpayer is liable to file, as appropriately.

      Note:

      If the taxpayer has the return already prepared, encourage the taxpayer to fax directly to you while on the telephone. If return is faxed, refer to 13 "note" below.

    The taxpayer states "go ahead and prepare their return" and the module meets ASFR criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return (ASFR) Referrals.
    • First, advise the taxpayer the following: "We will use the highest tax rates with no deductions, allowing only your personal exemption. Interest and penalties will accrue from the original due date of the return until the substitute for return (ASFR) is processed and the account is paid in full. It is to their best interest to prepare and file a return on their own and pay any balance due as soon as possible" .

    • If in SC 02 and the taxpayer still says to go ahead and file their return, then input delay "C01" to accelerate to TDI Status 03, hold the case for one cycle for the module to update, then enter ACS history code "TFRO,,AOTO8000" to assign the case to ASFR.

    • If in TDI Status 03, enter ACS history code "TFRO,,AOTO8000" to assign the case to ASFR.

    • Provide warning of enforcement actions, see IRM 5.19.1.8 , Warning of Enforcement Action and Enforced Collection.

    • Document AMS of filing status, number of exemptions, taxable income, tax or refund due to support actions taken that the taxpayer is liable to file, as appropriately.

    The taxpayer states to go ahead and prepare their return and does not meet ASFR criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return (ASFR) Referrals
    • Advise the taxpayer, the ASFR program is not a voluntary option.

    • Instruct the taxpayer to file the return and set a deadline (see table in paragraph 11 below) taking into consideration the complexity of the delinquent return(s) and other pertinent circumstances, but generally not more than 30 days.

    • If the taxpayer has been given a previous deadline that has passed, allow only a 10 day extension. They should be allowed a total of 40 days (any further extensions must be approved by a manager). Advise the taxpayer that no further extensions will be granted. Document the additional justification for the second extension.

    • Remind the taxpayer to ensure the correct current address is on the return, whether it is a copy or original return.

    • Input a history item on IDRS (using CC ACTON "TPPFmmdd" with mmdd indicating the target date) or document on AMS the target date provided to the taxpayer to file their return and warning of enforcement actions.

    • Enter ACS history code "TOI7,XX,TFQU" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

    • Provide warning of enforcement actions, see IRM 5.19.1.8 , Warning of Enforcement Action and Enforced Collection.

    • Document AMS of target date to file "TPPFmmdd" (with mmdd indicating the target date), filing status, number of exemptions, taxable income, tax or refund due to support actions taken that the taxpayer is liable to file, as appropriately.

  11. If assisting the taxpayer by telephone or in person at a Taxpayer Assistance Center (TAC) (ACS or FA Employee), and the taxpayer has another module in TDA Status 22, then refer to chart below.

    If Then
    Account is in Notice Status 02 or TDI Status 03.
    1. Ask the taxpayer for a reason the return was not filed (e.g. the taxpayer owed money and could not pay, so they did not file; taxpayer could not find tax records, health/ family issues, etc.), and determine if the taxpayer has the necessary data and forms to file the return(s). If necessary, provide data for taxpayer to file. Instruct the taxpayer to file the return and set a deadline (see table in paragraph 9 below) taking into consideration the complexity of the delinquent return(s) and other pertinent circumstances, but generally not more than 30 days.

      Note:

      If the taxpayer has the return already prepared, encourage the taxpayer to fax the return. If return is faxed, refer to 13 "Note" below.

    2. If an Installment Agreement is being considered, refer to IRM 5.19.1.5, Methods of Payments to determine and advise the taxpayer if any returns need to be filed prior to granting an IA.

    3. If the taxpayer has been given a previous deadline, allow only a 10 day extension (any further extensions must be approved by a manager). Document the additional justification for the second extension and advise the taxpayer that no further extensions will be granted.

      Note:

      Once 40 days have elapsed (30 days plus 10 day extension), do not grant further extensions without managerial approval. Advise taxpayer to file return as soon as possible.

    4. Advise the taxpayer that failure to file by the specified date could subject them to a possible substitute for return processing. If the taxpayer states "go ahead and prepare their return" , inform the taxpayer the ASFR program is not a voluntary option. The taxpayer is required to file a return by the deadline set in steps 1 or 3 above.

      Note:

      If taxpayer is unable to pay refer to IRM 5.19.1.7.1.5, CNC Unable to Pay - Hardship, to further analyze and verify for CNC criteria, otherwise follow items 5 through 8 below.

    5. Warn the taxpayer of potential enforcement action (lien/levy/ASFR) see IRM 5.19.1.8, Warning of Enforcement Action and Enforced Collection.

    6. Verify and document existing levy sources and add new levy sources.

    7. Document AMS to support actions taken:

      • With target date to file "TPPFmmdd" (with mmdd indicating the target date)

      • Filing status

      • Number of exemptions

      • Taxable income

      • Tax or refund due

      • provide warning of enforcement actions, see IRM 5.19.1.8, Warning of Enforcement Action and Enforced Collection

    8. Enter next case actions:
      If there are available levy sources: Enter ACS history code:

      • TOR5,XX,CKCMTS (if LT11 already sent) -or-

      • TOI8,XX,CKCMTS (if LT11 not sent) -or-

      • OADT,XX,CKCMTS (if levy already issued, but not released in full).

      • Enter ACS history TOI7,XX,TFQU (No levy sources and does not meet ASFR criteria)

        Note:

        (XX stands for the deadline plus 30 days.) IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

    Note:

    If you are not trained to work balance due issues, transfer the call or ask the taxpayer if you can have someone return their call. Complete Form 4442 for the TDA issue, and forward to the appropriate area.

  12. If you are an ACS/ACSS employee, use the following table as a guide to determine the amount of days to allow the taxpayer to file a return:

    Circumstance/Complexity Establish Deadline
    Taxpayer has tax forms completed but has not mailed 10 days
    Taxpayer has not completed tax forms but has all necessary information for easy filing (no schedules) 10 days
    Taxpayer has most tax forms and must file a return with schedules 30 days
    Taxpayer is in need of all necessary tax forms 30 days
    Taxpayer has multiple returns that should be filed 30 days
    Taxpayer has multiple returns to be filed and has no forms or wage information 30 days
    Taxpayer has medical hindrance, POA issues, catastrophic event, or needs to reconstruct records 30 days

    Note:

    allow more time if the information gathered above shows it is needed, taking into consideration the complexity of the delinquent return(s), and other pertinent circumstances

    Note:

    Allow 60 days for International Accounts.

  13. If you are an ACS employee, advise the taxpayer to:

    • "sign and date" the return(s),

    • use current address on the return,

    • include all required schedules and documents,

    • provide a valid fax number and/or mailing address to the appropriate ACSS Function (regardless of module status).

    See the link below for appropriate SBSE ACSS site: http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/SBSE_Consolidated_State_Mapping_for_ACS_Support_and_Collection_Due_Process.htm
    See the link below for appropriate W&I ACSS site:http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/WI_Consolidated_State_Mapping_for_ACS_Support_and_Collection_Due_Process.htm.

    Note:

    Employees can accept tax return(s) through fax while on the telephone with the taxpayer. When the return is received, perfect (ensure address is correct, code per procedures, etc.) the return, use the faxed received date as the IRS received date. See IRM 5.19.2.5.4.6.12, IMF Response with Original Return. Complete the appropriate RD/TDI transaction and closing code actions prior to routing the return to the appropriate campus. If the taxpayer does not have the documents necessary during the telephone contact, follow the mailing procedures above.

  14. Only when requested/needed, provide the taxpayer with missing income information from IRS internal sources, such as:

    • TDI Supplement

    • Information Reporting Program (IRP) Transcripts (Case Minors Only)

    • Corporate Files On-Line (CFOL) on IMF cases

    • Transcript Delivery System (TDS)

  15. If necessary, provide the required tax forms or request them through SERP. If the taxpayer has Internet access, provide him/her with the IRS website address: http://www.irs.gov/. You can also provide the Toll-Free number to order forms 1-800-TAX FORM (1-800-829-3676).

    Note:

    On AMS "ELITE" can be used to mail forms directly to the taxpayer's address on entity.

5.19.2.5.4.6.5  (01-16-2015)
IMF Response Taxpayer Resides Outside U.S. or in the U.S. Territories

  1. This section gives general guidelines on working notice responses for taxpayers residing outside of the U.S. (foreign address) or who are bona fide residents of a territory [i.e., Commonwealth of Puerto Rico (PR), U.S. Virgin Islands (USVI), Guam (GU), American Samoa (AS), Commonwealth of the Northern Mariana Islands (CNMI)].

    Note:

    Throughout this section, Document AMS or ACS accordingly on all actions taken.

  2. For taxpayers who work outside of the U.S. during the delinquency year, RD responses are handled in the same normal processing manner, even if taxpayer lived overseas during the delinquency period. Use normal processing procedures to code and prepare secured tax returns for processing. See IRM 5.19.2.5.4.6.12, IMF Response with Original Return.

  3. For taxpayers who are bona fide residents of a U.S. Territory, special rules apply. Bona fide residents of GU, CNMI, or USVI generally file a single income tax return with the territory tax authority, IRS, or both, depending on their residency and income, see IRM 21.8.1.4, Territories of the United States, for additional information and see Pub 570 , Tax Guide for Individuals with Income from U.S. Possessions.

    Note:

    Individuals born in U.S. territories are U.S. citizens, except in the case of American Samoa, where such individuals are U.S. nationals who are treated as U.S. citizens for tax purposes. Many individuals residing in a territory are permanent residents of the U.S. because they have a "green card" and for tax purposes they are treated the same as U.S. citizens.

  4. Taxpayers who are bona fide residents of PR or AS may need to file separate returns with both the territory tax authority and the IRS, see IRM 21.8.1.5 , Puerto Rico or IRM 21.8.1.9 , American Samoa, and see Pub 570 , Tax Guide for Individuals with Income from U.S. Possessions, for additional information.

  5. For all cases showing a foreign address, even if they live in a U.S. Possession (Guam, Virgin Islands, American Samoa, Northern Mariana Islands or Puerto Rico), make any entity changes to reflect the foreign address and location code. Input a TC 030 with Document Code 63 on CC ENREQ to identify the taxpayer as living outside the U.S.

  6. If response indicates a foreign address and the Last Return Amount (LRA) meets criteria for "Little or No Tax Due" , see IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due. Do not send the response to A/C International.

  7. If response indicates a foreign address and the LRA exceeds criteria for "Little or No Tax Due" , and they do not live in a U.S. Territory (Guam, Virgin Islands, American Samoa, Northern Mariana Islands or Puerto Rico), send the case to A/C International.
    Internal Revenue Service, Mail Stop 4-N-31.143, 2970 Market St., Philadelphia, PA 19104 using Form 3499 . Input appropriate delays using cc ASGNI. Send an Letter 86C to advise the taxpayer of the transfer. See paragraphs 9 and 10 below for residents of a U.S. Possession.

  8. If taxpayer is a bona fide resident of Guam [GU], Commonwealth of the Northern Mariana Islands [CNMI or NMI], or U.S. Virgin Islands [USVI or VI], process as follows:

    Note:

    See specific procedures for each U.S. possession stated above; see IRM 21.8.1.6, U.S. Virgin Islands, IRM 21.8.1.7, Guam, and IRM 21.8.1.8, Commonwealth of the Northern Mariana Islands.

    If And Then
    Bona Fide Resident of a specified U.S. Territory during delinquent year, Self-employed
    1. Change filing requirement to 1040SS (MFT 30, FR 06).

    2. Send a Letter 2269C to request a Form 1040-SS return.

    3. Do not forward the case to A/C International.

    Not self-employed
    1. Input TC 590 cc 076/026/021.

      Note:

      If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview, for guidance.

    2. Do not forward the case to A/C International.

    Taxpayer NOT liable for U.S. Form 1040 if taxpayer is a bona fide resident and filed return with Guam or CNMI, Credit is present on the account Follow procedures in IRM 5.19.2.5.7, Credit Balance Overview.
    Taxpayer NOT liable for U.S. Form 1040 if taxpayer is a bona fide resident and filed return with VI.
    1. Route the case to A/C International at PSC (address shown in paragraph 7 above), using Form 3499.

    2. Send an Letter 86C to advise the taxpayer of the transfer.

    Taxpayer is liable for U.S. Form 1040 (i.e. taxpayer was a resident of the U.S. and not a bona fide resident of the U.S. Territory). Original return is secured
    1. Input TC 599 cc 094/096 (CSCO/AM), 0440/46 (ACS/ACSS), 20/21 (FA) and forward return to Austin Submission Processing.

      Note:

      Do not forward to A/C International area.

    2. Send a Letter 86C to advise taxpayer the return was forwarded to another area for processing.

    Taxpayer states the return has already been filed
    1. Verify if return was filed as stated, if no return has been previously processed, see IRM 5.19.2.5.4.6.12, IMF Response with Original Return.

    2. For cases in Notice Status 02, input "C08" using CC ASGNI .

    Note:

    Tax forms used by some territories may be identical or similar to IRS forms. Taxpayers may be using a U.S. Form 1040 to file a territorial income tax return, with the U.S. Possessions. Do not process the return as a U.S. return if taxpayer is not liable (this includes a copy of a return filed in a possession).

  9. If taxpayer sends in an original tax return for a year that he or she is not liable, and the return was intended to be filed with the tax office of the U.S. Territory, send the return to the appropriate address:

    Department of Revenue and Taxation
    Government of Guam
    PO Box 23607
    GMF, GU 96921

    Division of Revenue and Taxation
    Commonwealth of the Northern Mariana Islands
    PO Box 5234, CHRB
    Saipan, MP 96950

    Virgin Islands Bureau of Internal Revenue
    9601 Estate Thomas
    Charlotte Amalie
    St. Thomas, USVI. 00802

  10. Residents of Puerto Rico (PR) or American Samoa (AS) may or may not have a U.S. filing requirement. If a return is due, advise taxpayer of transfer to SBSE International Operations. Process RD response if it indicates the following:

    If And Then
    NOT self-employed and NOT employed by U.S. Government No income from sources outside PR or AS
    1. Input TC 590 with appropriate closing code.

      Note:

      If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview, for guidance.


      Do not forward the case to A/C International.

    NOT self-employed and NOT employed by U.S. Government Income from sources outside PR or AS
    1. Send a Letter 2269C or other appropriate letter to request a return.

    2. For cases in Notice Status 02, input "C08" using CC ASGNI..

    3. Do not forward the case to A/C International.

    Self-employed bona fide resident of PR with $400 or more of net income Intentionally left blank
    1. Liable for 1040PR or 1040SS. Change FR to 07.

    2. Send a Letter 2269C or other appropriate letter to request a return.

    3. For cases in Notice Status 02, input "C08" using CC ASGNI. .

    4. Do not forward the case to A/C International.

    Self-employed bona fide resident of AS with $400 or more of net income Intentionally left blank
    1. Liable for 1040SS. Change FR to 0.

    2. Send a Letter 2269C or other appropriate letter to request a return.

    3. For cases in Notice Status 02, input "C08" using CC ASGNI.

    4. Do not forward the case to A/C International.

    Income from U.S. Government source Whether it is earned on or off the island
    1. Send a Letter 2269C or other appropriate letter to request a return.

    2. For cases in Notice Status 02, input "C08" using CC ASGNI. .

    3. Do not forward the case to A/C International.

5.19.2.5.4.6.6  (01-16-2015)
IMF Response Taxpayer Deceased

  1. This section provides general guidance for handling decedent RD modules. All procedures apply to contacts via telephone, correspondence or in person, unless otherwise noted. All information secured and/or actions taken must be documented in AMS or IDRS history. If original documents are received, make copies and return the originals to the provider.

  2. Refer to IRM 11.3.2.4.11, Deceased Individuals, Disclosure of Official Information, for additional guidance.

  3. If a decedent case has previously been identified, the account should contain one or more of the following:

    • DECD in the name line

    • Date of Death on CC INOLES

    • TC 540 on CC TXMOD or CC IMFOLT for the year of death

    • Mail File Requirements (MFR 08) on CC ENMOD

    Note:

    Research the account for a Criminal Investigation (CI) Z freeze. If present, route the death certificate attached to Form 4442 to the campus indicated on the DLN of the TC 914, 916, or 918. If you are speaking to a third party on the telephone, secure the information listed in proceeding paragraph below and send this to CI.

    If ... And ... Then ...
    If you contacted the third party by phone or a telephone call is received from a third party The delinquent return will result in a potential balance due, or there is an associated balance due module on the account
    1. Determine if there is an Estate and/or executor for the decedent taxpayer.

    2. Research CC INOLE with definer S or G for an established estate.

    3. If no information is located through research, attempt to secure the following information:

      Note:

      AM phone employees need to ask if this information can be faxed while the taxpayer is on the line. Employees should ask for the information below and enter the information on AMS or IDRS history. A fax should be sent to substantiate the information is complete and correct. If not, the taxpayer will need to submit the information in writing along with a letter explaining the situation or call back when the information can be faxed.

      • Date of death.

        Note:

        If a date of death is not present on CC INOLE , attempt to secure a copy of the death certificate.

      • County in which the taxpayer died.

      • County in which the taxpayer resided at the time of death.

      • Ask if there is an established Estate, for the EIN and if Form 1041 is applicable.

      • Name, address, telephone number of the fiduciary (executor or administrator).

      • Name and telephone number of the third party providing the information if different from the fiduciary for documentation purpose.

      • If the case is a combo account (balance due & return delinquency), refer to IRM 5.19.1.4.3, Deceased Taxpayers for guidance.

        All information secured and/or actions taken must be documented on AMS or IDRS.

        Note:

        If it is determined based on IRPTRJ the TDI module(s) meet Little or No Tax Due and there is no associated balance due module, close that module appropriately including updating date of death, if secured. It is not necessary to request the additional documentation listed above.

    Note:

    For HINF cases, see IRM 5.19.2.7.6, HINF - Deceased Taxpayers.

    Correspondence is received indicating the taxpayer is deceased Internal research does not verify date of death Attempt to call the responder (if a number is available) to secure the above information or documentation
    no telephone number is available or the phone contact was unsuccessful
    1. Send the taxpayer a Letter 2268C or appropriate letter requesting the above documentation

    2. For modules in Notice Status 02, input a C08 using CC ASGNI.

    Correspondence is received indicating there is no estate, the estate is closed In Notice Status Code 02 and/or there is no executor, Document AMS comments and input CC ASGNI(A)
    death certificate is received either by fax or correspondence There is no (Z) freeze for CI
    1. There is no (Z) freeze for CI input a TC 540 using CC REQ77 for the year of the taxpayer's death, (for example: If the taxpayer died in 2012, the TC 540 would be input on the 2012 module, closing filing requirements after that year.) if there is no TC 540 input, unless it is the current year and there is a filing requirement.

      Note:

      If an original death certificate is secured, Document entity with the information and return the original to the sender. Tell taxpayer's to send copies only so we don't have to send back originals. Faxed and copies can be destroyed.

    2. Ensure the name line is updated in the year of death or the TC 540 will cause an Unpostable condition. Ensure the first name line is addressed to the deceased taxpayer, and the second name line to the surviving spouse or representative. Refer to IRM 5.19.1.4.3.2, Deceased Taxpayers- Entity Changes, for procedural guidance on entity changes/updates.

    If there is an indication of an Estate Intentionally Left Blank Request the EIN for the estate and or a copy of the Form 1041, if applicable. Get information while you can.
    HINF Select Code Intentionally left Blank See IRM 5.19.2.7.6, HINF- Deceased Taxpayers.

    Note:

    Under no circumstances should a HINF deceased taxpayer case be closed with a TC 59X, until verification has been secured that the income reported for the year of death or prior, has been reported on another return (i.e. spouse, estate income tax return Form 1041, etc.).

  4. For Decedent Stand Alone TDI case processing only, the following scenarios may be encountered;

    • Income may be distributed to a decedent in the year of death or the year(s) after death. The surviving spouse may choose to include the decedent's income on a joint return in the year of death. The decedent's income up to date of death is includible on a Form 1040 . After the taxpayer's death they are required to file Form 1041 . For subsequent years the decedent's income must be reported on Form 1041 .

    • If there is no surviving spouse or the surviving spouse chooses to file separately, they must file the decedent's final income tax return for the year of death. The decedent's income up to date of death is includible on a Form 1040. After the taxpayer's death they are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts, to report gross income of $600 or more.

      Note:

      The date of death determines the end of the decedent's tax year and the beginning of the estate's tax year.

    • With respect to income earned on assets that were already distributed to beneficiaries, those income amounts would be reported on the individual returns of the beneficiaries receiving the income.

    • If the income is received by the estate and later distributed through the estate to heirs, generally it would be reported on the Form 1041 of the estate. If the income is taxable distributable net income the estate will receive an income tax deduction for distributions of this income to the heirs. The heir will report the income on their Form 1040 and pay the tax on the distributed income. Estate income will be reported under the EIN and reflected on IRPTR.

    Note:

    For more information see IRM 5.5.1.8, Filing Compliance or Pub 559, Survivors, Executors, and Administrators

  5. If the taxpayer died during or after the delinquent year, take the following actions:

    If And Then
    Based on IRPTRJ, the tax liability meets the requirement for "IMF Little or No Tax Due" . See IRM 5.19.2.5.4.6.3 For CSCO and AM Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input TC 590 cc 077 using CC FRM49 only on the delinquent years that meet the requirement for little or no tax due.

    3. Input TC 591 cc 075 using CC FRM49 on year following the taxpayer's death.

      Note:

      If a credit balance remains on the account, you must follow all credit balance procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation from IRPTRJ.

    For ACS and ACSS Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input TC 590 cc 027 using CC FRM49 only on the delinquent year(s) that meet the requirement for little or no tax due.

      Note:

      ACS/ACSS Managers have the option to enter history code RD90,27 or return to employee to input on IDRS.

    3. Input TC 591 cc 025 using CC FRM49 on the year following taxpayer's death.

      Note:

      Reminder, if a credit balance remains on the account, you must follow all credit research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation from IRPTRJ.

    5. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND" .

    For FA Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on year of death.

    2. Input TC 590 cc 020 using CC FRM49 only on the delinquent year(s) that meet the requirement for little or no tax due.

    3. Input TC 591 cc 020 using CC FRM49 on the year following taxpayer's death.

      Note:

      Reminder, if a credit balance remains on the account, you must follow all credit research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation from IRPTRJ.

    5. If the account is on ACS, enter history code "TOC0,21,RDPND" or "TOS0,21,RDPND" .

    Based on IRPTRJ, the tax liability meets the requirement for "IMF Refund Due" . Per IRM 5.19.2.5.4.6.2 For CSCO and AM Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input TC 590 cc 078 using CC FRM49 on the delinquent years.

    3. Input TC 591 cc 075 using CC FRM49 on year following the taxpayer's death.

      Note:

      If a credit balance remains on the account, you must follow all credit balance procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation.

    For ACS and ACSS Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input TC 590 cc 028 using CC FRM49 on the delinquent year(s).

      Note:

      ACS/ACSS Managers have the option to enter history code RD90,28 or return to employee to input on IDRS.

    3. Input TC 591 cc 025 using CC FRM49 on year following taxpayer's death.

      Note:

      Reminder, if a credit balance remains on the account, you must follow all credit research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation.

    5. 5. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND" .

    For FA Employees
    1. 1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on year of death.

    2. Input TC 590 cc 020 using CC FRM49 on the delinquent year(s).

    3. Input TC 591 cc 020 using CC FRM49 on year following taxpayer's death.

      Note:

      Reminder, if a credit balance remains on the account, you must follow all credit research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    4. Document AMS of closing actions including date of death and tax computation.

    5. 5. If the account is on ACS, enter history code "TOC0,21,RDPND" or "TOS0,21,RDPND"

    Based on IRPTRJ, the tax liability exceeds the requirement for "IMF Little or No Tax Due" refer to IRM 5.19.2.5.4.6.3 For CSCO, and AM Employees,
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. If the TIN or EIN is not provided on the death certificate or by the executor/administrator or spouse, then research IDRS CC NAMEE or NAMES to secure a possible TIN/EIN.

    3. If an EIN is found, research CC BMFOL to verify a Form 1041 return has been filed. If the return is filed for the period after death, input a TC 591 cc 075 on the deceased taxpayer's delinquent module. Notate the cross reference TIN on AMS. A return is required to be filed for the year of death, after death the 1041 is filed.

    4. If a cross reference SSN is found, research CC IMFOL to verify a return has been filed. If the return is filed, input a TC 591 cc 075 on the deceased taxpayer's delinquent module on the year after death.

      Note:

      Reminder, if a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    5. If no return was filed and a telephone number is provided, attempt to call the responder before sending a Letter 2268C.

      Note:

      AMS must be annotated that telephone contact has been attempted before sending a letter.

    6. If you reach the survivor/executor or spouse, follow the procedures above in paragraph 4 (above the If And Then chart).

    7. If you contact by telephone and based on IRPTRJ you determine the taxpayer is not liable for a return, see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).

    8. Input TC 591 cc 075 on the year following the taxpayer's death.

      Note:

      If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    9. If you contact by telephone and determine the taxpayer is liable for a return, request survivor/executor or spouse to file all delinquent tax returns and a copy of the death certificate if it was not previously obtained or CC INOLES does not show a date of death.

    10. In addition, provide the survivor/executor with return and mailing instructions per IRM 5.19.2.5.4.6, IMF - Determining Liability. Provide IRP income if necessary send individual IRP documents.

    11. If unable to contact by telephone, send Letter 2268C , requesting all delinquent returns be filed. Input a delay "C08" using CC ASGNI, if appropriate.

    12. Input a delay "C08" using CC ASGNI. See IRM 5.19.2.5.1.1, Accelerate and/or Delay To TDI Status 03, for guidance on inputting delay.

    For ACS and ACSS Employees.
    1. After receipt of a death certificate or per CC INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. If the TIN or EIN is not provided on the death certificate or by the executor/administrator or spouse, then research IDRS CC NAMEE or NAMES to secure a possible TIN/EIN.

    3. If an EIN is found, research CC BMFOL to verify a return has been filed. If the Form 1041 return is filed for the period after death, input a TC 591 cc 025 on the deceased taxpayer's delinquent module and notate the cross reference TIN on AMS. Notate the cross reference TIN on AMS. A return is required to be filed for the year of death, after death the 1041 is filed.

    4. If a cross reference TIN is found, research CC IMFOL to verify the return has been filed . If the return is filed, input a TC 591 cc 025 on the deceased taxpayer's delinquent module on the year after death. and notate the cross reference TIN on AMS.

    5. If no return was filed and a telephone number is provided, attempt to call the responder. If you reach the survivor/executor or spouse, follow the procedures above in paragraph 4 (above the If And Then chart).

      Exception:

      ACS employees continue to 11 below to complete case.

      Note:

      AMS must be annotated that telephone contact has been attempted before sending a letter.

    6. If you contact the Fiduciary/Executor/Administrator or spouse by telephone and determine the taxpayer is not liable for a return, see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).

    7. If you contact the Fiduciary/Executor/Administrator or spouse by telephone and based on IRPTRJ you determine the taxpayer is liable for a return, request all delinquent tax returns be filed. Provide IRP income if necessary send individual IRP documents (Case Minor records) only. See IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable for any additional procedures.

    8. If unable to contact the Fiduciary/Executor/Administrator or spouse by telephone, send Letter 2268C , requesting all delinquent returns be filed and a copy of the death certificate if it was not previously obtained or CC INOLES does not show a date of death. .

    9. If a fiduciary, administrator or executor exists, input name, address and telephone number. If an estate exists, input type of assets, court location, and docket number of the proceeding in a narrative on AMS. If the account is on ACS, input history code "TOR4,45,DECD " . For all HINF select codes, if the account is on ACS, input history code "T0R4,45,CMMTS " .

    10. Document AMS of all pertinent information, including any applicable information listed below:
      Cross reference TIN if Form 1041 filed,
      Name and contact information of the executor or fiduciary, including:
      date of death,
      county in which the taxpayer died,
      and county in which the taxpayer resided,
      request if taxpayer owned property at time of death, and county of property and estimated value of property.

    11. If after the expired follow up date has passed and the taxpayer's income was not reported by the fiduciary, spouse, or benefactor, determine if the case meets ASFR referral criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return (ASFR) Referrals.

    12. If the account is on ACS, enter history code "TFRO,AOTO8000 " .

    13. If the case does not meet ASFR criteria, see IRM 5.19.5.6.6, I7 - Transfers Actions, for procedures to transfer to the queue.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For FA Employees.
    1. After receipt of a death certificate or per INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. If the TIN or EIN is not provided on the death certificate or by the executor/administrator or spouse, then research IDRS CC NAMEE or NAMES to secure a possible TIN/EIN.

    3. If an EIN is found, research CC BMFOL to verify a return has been filed. If the Form 1041 return is filed for the period after death, input a TC 591 cc 040 on the deceased taxpayer's IMF delinquent module. Notate the cross reference TIN on AMS. A return is required to be filed for the year of death, after death the 1041 is filed.

    4. If a cross reference TIN is found, research CC IMFOL to verify a return has been filed. If the return is filed, input a TC 591 cc 040 on the deceased taxpayer's delinquent module on the year after death and notate the cross reference TIN on AMS.

    5. If no return was filed and a telephone number is provided, attempt to call the responder. If you reach the Fiduciary/Executor/Administrator or spouse follow the procedures above in paragraph 4 (above the If And Then chart).

      Note:

      AMS must be annotated that telephone contact has been attempted before sending a letter.

    6. If you contact the Fiduciary/Executor/Administrator or spouse by telephone and determine based on IRPTRJ the taxpayer is not liable for a return, see IRM 5.19.2.5.4.6.1, IMF Taxpayer Not Liable (Income Below Filing Requirements).

    7. Input TC 591 cc 020 on the year following the taxpayer's death.

    8. If you contact the Fiduciary/Executor/Administrator or spouse by telephone and determine the taxpayer is liable for a return, request survivor/executor or spouse to file all delinquent tax returns and a copy of the death certificate if it was not previously obtained or CC INOLES does not show a date of death. Provide IRP income, if necessary.

      Note:

      Send individual IRP documents (Case Minor records) only.

    9. If unable to contact the Fiduciary/Executor/Administrator or spouse by telephone, send a Letter 2268C. Requesting all delinquent return(s) to be filed.

    10. Document AMS of all pertinent information, including date of death, county in which the taxpayer died, and the county in which the taxpayer resided.

    11. If a fiduciary, administrator or executor exists, input name, address and telephone number.

    12. If an estate exists, document AMS with type of assets/property, estimated value of asset/ proper, court location, and docket number of the proceeding.
      If the account is on ACS, enter history code "TOR4,45,DECD" . For all HINF select codes, if on ACS input history code "TOR4,45,CMMTS" .

    13. If after the expired follow up has passed and the taxpayer's income was not reported by the fiduciary, spouse, or benefactor, determine if the case meets ASFR referral criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return (ASFR) Referrals. If the account is on ACS, enter history code "TFR0,AOTO8000 " .

    14. If the case does not meet ASFR criteria refer to IRM 5.19.5-9 , Field Queue Bypass Criteria (Reference IRM 5.19.5.3.1) for guidance on transferring to the Queue.

    Note:

    If a credit balance remains on the account, you must follow all credit balance procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.


  6. If the taxpayer died before the delinquent year, take the following actions:

    If And Then
    For CSCO and AM Employees, A return has been filed in the year of death under the spouse's SSN,
    1. After receipt of a death certificate or per INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. If there is an open RD module in the year of death, input a TC 594 CC 084 on the deceased taxpayer's module, notate the cross reference TIN on AMS.

    3. Input TC 591 cc 075 using CC FRM49 on the delinquent year.

    4. Document AMS of findings and actions taken.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    A Form 1041 return has been filed in the year of death,
    1. After receipt of a death certificate or per INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input TC 591 cc 075 using CC FRM49 on the delinquent year, notate the cross reference EIN on the Form 1041.

    3. Document AMS with findings and action taken.

    Note:

    If a credit balance remains on the account, you must follow credit balance research before closing the module with a TC 590, 591 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    A return has not been filed in the year of death under the deceased or spouse's SSN or a Form 1041 ,
    1. After receipt of a death certificate or per INOLES a date of death is obtained, input TC 540 using CC REQ77 on the year of death.

    2. Input a TC 591 cc 075 on the delinquent year.

    3. Advise that income reported on deceased taxpayer's TIN should be reported under the TIN of the person or entity receiving the income.

    4. If telephone number is available, attempt to call the third party before sending a Letter 2268C to the Estate using the address of record, include the IRP supplement. Request all delinquent returns be filed, and a copy of the death certificate if it was not previously obtained or CC INOLES does not show a date of death.

    5. Document AMS with findings and action taken. annotate the telephone attempt made before sending the letter.

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For ACS and ACSS Employees, A return has been filed in the year of death under the spouses SSN,
    1. Input TC 540 using CC REQ77 on the year of death.

    2. If there is an open RD module in the year of death, input a TC 594 cc 034 on the deceased taxpayer's module and indicate the cross reference TIN/EIN in a narrative on AMS.

    3. Input TC 591 cc 025 using CC FRM49 on the delinquent year.

    4. Document comments with closing actions including taxpayer's date of death in a narrative on AMS.
      If the account is on ACS, input history code "TOC0,30,RDPND" or "TOS0,30,RDPND " .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    A Form 1041 return has been filed in the year of death,
    1. Input TC 540 using CC REQ77 on the year of death.

    2. Input TC 591 cc 025 using CC FRM49 on the delinquent year.

    3. Document AMS with closing actions including taxpayer's date of death.
      If the account is on ACS, input history code, "TOC0,30,RDPND" or "TOS0,30,RDPND " .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    A return has not been filed in the year of death under the deceased or spouse's SSN or a Form 1041 ,
    1. Input TC 540 using CC REQ77 on the year of death.

    2. Input a TC 591 cc 025 using CC FRM49 on the delinquent year. Document comments with closing actions including taxpayer's date of death. If account is on ACS, input history "TOC0,30,RDPND" or "TOS0,30,RDPND" .

    3. Advise that income reported on deceased taxpayer's TIN should be reported under the TIN of the person or entity receiving the income.

      Note:

      Step 4 thru 9 are for ACSS employees working correspondence or R4 inventory.

    4. If telephone number is available, attempt to contact the third party before sending a Letter 2268C to the Estate using the address of record, include the IRP supplement, requesting all delinquent returns to be filed.

    5. Document AMS of all pertinent information, including date of death, county in which the taxpayer died, and county in which the taxpayer resided. Annotate the telephone attempt made before sending the letter. Document the following information, if applicable:
      If a fiduciary, administrator or executor exists, document their input name, address and telephone number.
      If an estate exists, input type of assets/property, estimated value of property/assets, court location, and docket number of the proceeding in a narrative on AMS.
      If the account is on ACS, enter history code "TOR4,45,DECD" or "OADT,45,DECD (if working R4)" .

    6. If the follow-up date has expired and the taxpayer's income was not reported by the fiduciary, spouse, or benefactor, and the net tax exceeds ($2,500 for a W&I employee's case) or ($1,500 for an SBSE employee's case), refer the case to Exam. Refer to Exam using a Form 3449 attaching IRP Documents and any other pertinent information.

    7. Input a TC 595 cc 032.

    8. Document AMS of actions taken.
      If the account is on ACS, enter history code "TOR4,30,CMNTS" or "OADT,30,CMNTS (if working R4)" .

    9. If unable to close the account per step 5 above, and the account is on ACS, transfer the case to the QUEUE via "TFQU,AOTO7000 " .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For FA Employees. A return has been filed in the year of death under the spouse's SSN,
    1. Input TC 540 using CC REQ77 on the year of death.

    2. If there is an open RD module in the year of death, input a TC 594 cc 023 on the deceased taxpayer's module including the cross reference SSN.

    3. Input TC 591 cc 020 using CC FRM49 on the delinquent year.

    4. Document AMS of closing actions including taxpayer's date of death.
      If the account is on ACS, enter history code, "TOC0,21,RDPND" or "TOS0,21,PDPND" .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    A Form 1041 return has been filed in the year of death,
    1. Input TC 540 using CC REQ77 on the year of death.

    2. Input TC 591 cc 020 using CC FRM49 on the delinquent year.

    3. Document AMS of actions taken including taxpayer's date of death in a narrative on AMS. If the account is on ACS, input ACS history code, "TOC0,21,RDPND" or "TOS0,21,RDPND" .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview

    A return has not been filed in the year of death under the deceased or spouse's SSN or a Form 1041.
    1. Input TC 540 using CC REQ77 on the year of death.

    2. Input a TC 591 cc 020 on the delinquent year.

    3. Advise that income reported on deceased taxpayer's TIN should be reported under the TIN of the person or entity receiving the income.

    4. If telephone number is available, attempt to call the third party before sending a Letter 2268C to the Estate using the address of record, include the IRP supplement, ask that all delinquent returns be filed.

    5. Document comments all pertinent information, including date of death, county in which the taxpayer died, and county in which the taxpayer resided in a narrative on AMS. Annotate the telephone attempt made before sending the letter.

    6. If a fiduciary, administrator or executor exists, input name, address and telephone number. If an estate exists, input type of assets/property, estimated value of property, court location, and docket number of the proceeding in a narrative on AMS.
      If the account is on ACS, enter history code "TOR4,45,DECD" .

    7. If the follow-up date has expired and the taxpayer's income was not reported by the fiduciary, spouse, or benefactor, and the net tax exceeds ($2,500 for a W&I employee's case) or ($5,000 for an SBSE employee's case) refer the case to Exam via Form 3449 and attach IRP Documents and include any other pertinent information. Input a TC 595 cc 032, document in a narrative on AMS. If the account is on ACS, enter history code TOR4,21,CMNTS.

    8. If unable to close the account per step 5 above. If the account is on ACS, transfer the case to the QUEUE "TFQU,AOTO7000 " .

    Note:

    If a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

  7. For TDI Status 03 cases that have an associated module with a balance due module(s), refer to IRM 5.19.1.4.3 , Deceased Taxpayers.

5.19.2.5.4.6.7  (01-16-2015)
IMF Response Taxpayer Incarcerated

  1. Use this section to determine actions needed on Incarcerated Taxpayer accounts.

    If Then
    Taxpayer provides prison address,
    1. Document address on IDRS using CC ENREQ including prison identification number.

    2. See IRM 5.19.2.5.4.6, IMF Determining Liability, for additional guidance.

    Prison Address is provided by a third party,
    1. If a third party (e.g. practitioner, new occupant, former spouse) provides a new address, DO NOT document Master File until address can be verified by taxpayer or Power of Attorney.

    2. Send Letter 3064C or other appropriate letter to the Prison Address and include Form 8822, Change of Address.

    Note:

    Do not send tax returns or Wage & Income documents to prison addresses.

    No new address is provided. Follow procedures in IRM 5.19.2.5.6.2, Third Party Contact and Responses.

5.19.2.5.4.6.8  (01-16-2015)
IMF Response Federal Employee/Retiree Delinquent Investigation (FERDI)

  1. Use this section to determine FERDI liability.

  2. Verify the taxpayer’s claim that he or she is not liable to file a tax return by researching CC IRPTR or SUPOL.

  3. Advise the taxpayer of the results of your research.

  4. Calculate tax based on the filing status and number of exemptions the taxpayer states he or she has, or if you don’t have this information, based on one exemption (single or married filing separate).

    If Then
    Taxpayer is NOT liable to file a tax return (i.e. not enough income to file). Follow procedures in IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).
    Taxpayer will receive a refund. Follow procedures in IRM 5.19.2.5.4.6.2, IMF Refund Due.
    Return was previously filed under a spouse’s TIN. See IRM 5.19.2.5.4.6.10, IMF Response Taxpayer Previously Filed.
    Taxpayer needs help determining income received. Follow procedures in IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable.
    There is a net tax due. Reminder: Always attempt to secure full payment with the return. Follow procedures in IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable.
    The taxpayer indicates they cannot pay the balance due in full. Follow procedures in IRM 5.19.1, Balance Due. .
    The income meets the requirements for Little or No Tax Due. Follow procedures in IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due.

5.19.2.5.4.6.9  (01-16-2015)
IMF Response Taxpayer Will File (Correspondence Only)

  1. This section provides guidance for working accounts when taxpayer indicates return will be filed (i.e. records in hands of accountant, waiting for additional information, etc.):

    Note:

    If telephone number is available, attempt to contact the taxpayer before sending a letter as stated below. Document the telephone attempt on AMS as appropriately. If telephone contact is made, provide the taxpayer with return and mailing instructions per IRM 5.19.2.5.4.6, IMF - Determining Liability, and provide target dates as stated below. If no telephone contact is made, continue to follow procedures shown below:

    If Then
    Account is in Notice Status 02,
    1. Send a Letter 2267C or other appropriate letter. Advise the taxpayer that failure to file by the specified date could subject the taxpayer to a fine and/or criminal penalties and a possible Substitute for Return.

    2. If the taxpayer provided a date, do not allow more than 60 days. Enter a history item "TPPFmmdd" (Taxpayer Promised to File) on CC TXMOD with mmdd indicating the target date for filing or enter history on AMS documenting the target date.

    3. If the taxpayer did not provide a date, request they file within 30 days.

      Note:

      If the correspondence does not specify a date, do not input mmdd.

    4. Input a "C08" using CC ASGNI. To accelerate to ACS, see IRM 5.19.2.5.1.1, Accelerate or Delay To TDI Status 03 for guidance.

      Note:

      If the account has a subsequent balance due issue, ensure all STAUPs and delays are consistent.

    Account is TDI Status 03.
    1. Send a Letter 2267C or other appropriate letter. Advise the taxpayer that failure to file by the specified date could subject the taxpayer to a fine and/or criminal penalties and of a possible Substitute for Return processing.

    2. If the taxpayer provided a date, do not allow more than 60 days. Enter a history item "TPPFmmdd" (Taxpayer Promised to File) on CC TXMOD with mmdd indicating the target date for filing or enter history on AMS documenting the target date.

    3. If the taxpayer did not provide a date, request they file within 30 days. For ACS Support employees see IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable, follow the chart in paragraph 5.

      Note:

      If the correspondence does not specify a date, do not input mmdd.

    4. For "ACS-Support" employees only, document AMS comments with information, including the date the taxpayer specified to file.
      If the account is on ACS, enter history code, "TOI7,XX,TFQU" (XX stands for the deadline plus 30 days). If the account meets ASFR criteria, enter history code "TOI7,XX,ASFR" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

  2. When needed or requested provide taxpayer with missing income information from our internal sources. Use CC IRPTR/SUPOL with the appropriate definer, the TDS system to request income supplements.

    Note:

    Do not edit taxpayer information per Delegation Order 11-2.

  3. When needed or requested, provide the required tax forms if available. Tax form requests are available through SERP or Intranet. If the taxpayer has access to the Internet, inform him/her forms can be found at: http://www.irs.gov/formspubs/. You can provide the Toll Free number for forms 1-800-829-3676.

    Note:

    On AMS, "ELITE" can be used to mail forms directly to the taxpayer's address on entity.

5.19.2.5.4.6.10  (01-16-2015)
IMF Response Taxpayer Previously Filed Return

  1. The purpose of this section is to assist in locating previously filed returns.

  2. If the taxpayer indicates he/she was the secondary spouse on a joint return, see IRM 5.19.2.5.5.1, TIN and Entity Problem, Taxpayer Filed as Spouse on Joint Return.

  3. If the response indicates a return was filed less than ten weeks ago, and your initial research does not indicate a TC 150 has posted, refer to the table below for guidance:

    If Then
    Account is in Notice Status 02,
    1. Allow time for the return to post by inputting a delay of 8 weeks, using a "C08" on CC ASGNI. Input of the delay will prevent the module from proceeding to TDI status or delays a subsequent notice.

    2. Document AMS of actions taken.

    Account is in TDI Status 03.
    1. For CSCO/AM employees only, input IDRS history item(s) or enter AMS comments stating the date specified by the taxpayer.

    2. For ACS Support employees only, document information provided on AMS comments. If the account is on ACS, enter history code "OADT,45,CMNTS " .

    3. For ACS Call-site or FA employees only, ask the taxpayer for the following information and document on AMS:

      • Date return was filed

      • Total tax

      • Amount of tax/refund due (if known by the taxpayer

      If the account is on ACS, enter history code "OADT,45,CMNTS " .

  4. If the response indicates a return was filed more than ten weeks ago, research IDRS and follow guidelines below.

    If Then
    Return has posted to module (TC 150), Take no action.
    AP150 or PN150 has posted to the account, Take no action.
    RJ 150 or UNP 150 has posted to the account, Take no action.
    Return posted under another TIN or name,
    • Control or refer case, see IRM 5.19.2.5.5, Return Delinquency TIN and Entity Research.

    • See IRM 5.19.2.5.5.1, TIN and Entity Problems, or

    • See IRM 5.19.2.5.5.2, Return Delinquencies Due to Posting Errors.

    Return posted to different tax period (same TIN),
    • Control or refer case, see IRM 5.19.2.5.5, Return Delinquency TIN and Entity Research.

    • Transfer to the appropriate Accounts Management Unit and notate on the routing slip "Return posted to incorrect tax period" .

    • Input a TC 594 cc 083/033/022.

    Taxpayer submitted payment with return or cancelled check was submitted and encoder information matches the notice,
    1. If the payment is not on the module, follow the procedures in IRM 21.5.7, Payment Tracers.

    2. If the procedures for Payment Tracers lead you to an account module with the return posted, then follow the procedures above for a return posted under another TIN, Name or Tax Period.

    3. If the payment is on the module, follow the procedures in paragraph 5 below and request a copy of the return from the taxpayer.

     
    Taxpayer submitted payment with return or cancelled check was submitted and encoder information does not match the notice,
    1. Research the account module listed on the encoder information (TIN, MFT and Tax Period) to see if the return posted here.

    2. If the return did post here, then follow the procedures above for a return posted under another TIN, Name or Tax Period, and follow the procedures in IRM 21.5.7, Payment Tracers.

    3. If the procedures for Payment Tracers lead you to an account module with the return posted, then follow the procedures above for a return posted under another TIN, Name or Tax Period.

    4. If the procedures for Payment Tracers does not lead you to an account module with the return posted, follow the procedures in paragraph 5 below and ask the taxpayer for a copy of the return.

     
    Return or copy of return. Process return, see IRM 5.19.2.5.4.6.12, IMF Response With Original Return.  
  5. If the response indicates a return was filed more than ten weeks ago and none of the conditions in paragraph 4 are met, request a copy of the tax return. For more information see IRM 21.4.1.3.1.2, Return Found/Not Processed.

    • If a telephone number is available, attempt to contact the taxpayer before sending a letter as stated below.

    • Document the telephone attempt on AMS. If telephone contact is made, provide the taxpayer with return and mailing instructions in IRM 5.19.2.5.4.6, IMF - Determining Liability.

    • Advise the taxpayer to re-sign and date the return with the current date. In addition, remind the taxpayer to ensure the correct current address is on the return, whether it is a copy or original return.

    Proceed with the procedures below.

    If Then
    Account is in Notice Status 02,
    1. Instruct the taxpayer to send a copy of the return and set a deadline of 30 days from the day you are closing the case.

    2. If unable to contact by phone or taxpayer requests information be sent in a letter, send a Letter 2269C or other appropriate letter to advise the taxpayer we could not find their return and please send us a copy.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

    3. Input a history item on IDRS (using CC ACTON "TP2Fmmdd" with mmdd indicating the target date) or enter history on AMS explaining the target date provided to the taxpayer to file their copy.

    4. Input delay "C08" using CC ASGNI, see IRM 5.19.2.5.1.1, Accelerate or Delay to TDI Status 03. Note: If also working a balance due issue, make sure any STAUPs and delays are equal.

    Account is in TDI Status 03.
    1. Instruct the taxpayer to send a copy of the return and set a deadline of 30 days from the day you are closing the case.

    2. If unable to contact by phone or taxpayer requests information be sent in a letter, send a Letter 2269C (use LT26 if account in question is on ACS) or other appropriate letter to advise the taxpayer we could not find their return and please send us a copy.

      Exception:

      If you are talking to the taxpayer on the phone, you do not have to send a letter unless the taxpayer requests one is sent.

      Note:

      If you send an LT26 letter, it automatically sets a 10 day deadline.

    3. Input a history item on IDRS (using CC ACTON "TP2Fmmdd" with mmdd denoting the target date) or enter history on AMS documenting the deadline date provided to the taxpayer to file their copy.

    4. For "ACS/FA/ACSS" employees only, document the information secured along with the deadline date for filing on AMS comments. See steps 5 & 6 for appropriate ACS closing code.

    5. If the case meets ASFR criteria, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return (ASFR) Referrals. If account is on ACS, enter history code, "TOI7,XX,ASFR" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

    6. If the case does not meet criteria for ASFR, see IRM 5.19.2.5.4.4, IMF automated Substitute for Return Program (ASFR) Referrals. If the account is on ACS, enter ACS history code- "TOI7,XX,TFQU" (XX stands for the deadline plus 30 days). IRM 5.19.2.1.1, Return Delinquency Overview for information on determining follow-up dates.

5.19.2.5.4.6.11  (01-16-2015)
IMF Response Insufficient

  1. This section pertains to written responses that are insufficient to resolve.

  2. When additional information is needed to resolve the case, determine if the taxpayer is liable or not, see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements) or see IRM 5.19.2.5.4.6.4, IMF Taxpayer Liable.

  3. If the notice response is blank or has only a signature, follow the direction below.

    If Then
    Account is in Notice Status 02,
    1. Input a delay "C08" using CC ASGNI. To accelerate account to ACS or to delay to next status, see IRM 5.19.2.5.1.1, Accelerate or Delay To TDI Status 03, for guidance. (Do not delay PC-B notices.)

      Note:

      This delay code will allow any detached information to post before the next notice cycle.

    2. Destroy the notice.

    Account is in TDI Status 03. Destroy the Notice.
  4. If taxpayer is in bankruptcy, see IRM 5.19.2.5.4.2, IMF Special Handling, for processing procedures.

5.19.2.5.4.6.12  (01-16-2015)
IMF Response with Original Return

  1. This section provides the instructions to process original delinquent taxpayer returns. CSCO employees may receive a tax return requested from a RD CP notice correspondex letter, or requested from telephone contact. These are all batched as "IMF TDI Returns" . If return is a statute year see note below.

    Note:

    Per IRM 3.11.154.3.6, Statute Returns, and IRM 25.6.1.8, Original Delinquent Returns, it is not necessary to send delinquent original returns to the Statute Control Unit prior to being sent for processing if the return is the "initial" original return secured and we have coded the return with a TC 59X or we secured return(s) prepared under the authority of IRC 6020(b).

    Exception:

    The following types of tax returns need to be routed to the Statute Control Unit:
    - tax return being reprocessed with an "Original IRS Received Date"
    - reprocessed a tax return for a different tax period
    - a previous TC 610 payment on a statute year module and no indication a return was previously processed
    - credits/payments previously moved to Excess Collection (XSF), see IRM 25.6.1.8.4 (6), Processing Original Delinquent Returns
    - previous unpostable condition on the module (DC/DU 150, DC 976, etc.,) and the original return has not been processed and is more than 33 months from it's original received date. Forward to Statute Unit requesting a quick assessment.

  2. See IRM 5.19.2.5.4.2, IMF Special Handling for special situations such as bankruptcy, criminal investigation, etc. before continuing to paragraph 3.

  3. Review original returns for any of the following conditions, and take the appropriate actions:

    Note:

    A faxed return is considered an original filed return.

    If Then
    1. The taxpayer files a potential frivolous (lacking a legal basis or legal merit, not serious, not reasonably purposeful) return, see IRM 3.11.3.7.1.4, Frivolous Filer/Non Filer Returns, for referral criteria. If the case meets "frivolous filer" criteria,

    1. Input TC 595 cc 082/032 and refer to:
      Ogden Compliance Services
      ATTN: FRP, MS 4450
      1973 N. Rulon White Blvd.
      Ogden, UT 84404

    2. Document AMS comments of pertinent information.

    3. For "ACS/Field Assistance/ACS-Support" employees only, if account is on ACS, enter history code "TOR3,30,CMNTS " .

    4. Notate on correspondence or return, "Already seen by Collections (CSCO or ACSS)" before routing.

    The taxpayer sends in a return that just states they had no income, no tax due, or not liable, Prepare the return for processing per guidelines in paragraph 4 below.
    A TC 150 is already on the account. See IRM 5.19.2.5.4.6.13, IMF Response with Copy of Return(s).
    ASFR (ASGNI 8000) or "-L" Freeze (TC 140) present Follow IRM 5.19.2.5.4.6.12.1, IMF Response with Original Return ASFR or -L Freeze Present.
    TIN, name, tax period and/or MFT on the return do not match the attached CP notice.

    Example:

    Joint return being filed under primary SSN, but CP notice is for secondary SSN.

    Follow IRM 5.19.2.5.4.6.12.2, IMF Response with Original Return Does not Match CP Notice.
    If return is Unsigned Follow IRM 5.19.2.5.4.6.12.3, IMF Response with Original Return Unsigned.
    The taxpayer requests an Installment Agreement(IA) or CNC, either attached to the return or as documented in AMS history Process per IRM 5.19.1, Balance Due. If you do not have the training required to do an IA request, route to the appropriate area for resolution.
    None of the conditions above apply Proceed with directions in following paragraphs
  4. If none of the above conditions are present and the return is signed appropriately, code and prepare all secured return(s) for processing per the table below.

    Note:

    Use CC FRM49 with a block indicator of "BB" to generate block series 74 for all TC 594 and 599 transactions.

    If And Then
    Taxable return (return shows a tax liability before prepaid credits) For CSCO and AM Employees,
    1. Input a TC 599 cc 094.

    2. Document AMS with:

      • Date the return was filed

      • Balance due or refund amount

      • Full paid or IA request. Make sure you notate what they are asking for in the IA request on AMS.

    For ACS and ACSS Employees,
    1. Input a TC 599 cc 044.

    2. Document AMS with:

      • Date the return was filed

      • Balance due or refund amount

      • Full paid or IA request. Make sure you notate what they are asking for in the IA request on AMS.

    3. If the tax module is on ACS, enter history code "OADT,30,599044 " .

    For FA Employees,
    1. Input a TC 599 cc 024 .

    2. Document AMS with:

      • Date the return was filed

      • Balance due or refund amount

      • Full paid or IA request. Make sure you notate what they are asking for in the IA request on AMS.

    3. If the tax module is on ACS, enter history code "OADT,21,599024" .

    Non-taxable return (Return shows no tax liability before prepaid credits) For CSCO and AM Employees,
    1. Input a TC 599 cc 096 .

    2. Document all closing actions including amount of refund on AMS.

    For ACS and ACSS Employees,
    1. Input a TC 599 cc 046.

    2. Document closing actions including amount of refund on AMS.

    3. If the tax module is on ACS, enter history code "OADT,30,599046 " .

    For FA Employees.
    1. Input a TC 599 cc 021.

    2. Document AMS of actions taken, including amount of refund.

    3. If the tax module is on ACS, enter history code "OADT,21,599021 " .

    Reminder:

    If the return is unsigned and the taxpayer's signature is on the RD notice CP 59 /CP 759 (see note below) or Letter 143C (only), attach it to the back of the return and forward for processing. Annotate "TDI complete, Notice/Correspondence attached for signature only" on the signature line of the Form 1040.

  5. Code the appropriate TC 59X code in the left margin of the return. Include "Process as Original" at the top center margin of all "SIGNED" returns.

    Reminder:

    If you received a faxed return, use the date on the fax for the IRS received date. Notate on the return, "Process as Original Faxed Return" .

  6. All editing must be done in "Red" pen/pencil only. If the signature is not on the jurat signature line(s) and is shown in the "Third Party Designee or Preparer’s" signature area, this does not constitute a valid signature, therefore process as an unsigned return as stated in IRM 5.19.2.5.4.6.12.3, IMF Response with Original Return Unsigned.

    Note:

    If utilizing "Process as Original" labels ensure they are placed in the top center margin and do not cover any part of the dollar sign (on left side) or DLN (on right side).

  7. Other coding and editing you should address before sending to process:

    If ... Then ...
    If the taxpayer requests relief from
    • Failure to File,

    • Failure to Pay,

    • Failure to Deposit penalties due to reasonable cause or

    • Deceased

    • Put this information on a note and attach to the front of the return, to inform "Code and Edit" this type of request from the taxpayer is attached to the return.

    • Do not input any Computer Condition Codes (CCC) on the return. Document AMS regarding request for adjustment due to Reasonable Cause.

    Perfecting the Entity (correct and complete the SSN, name, address, or tax period) if necessary, in Red pen/pencil
    for additional editing procedures, see IRM 3.11.3.9, Taxpayer Identification Information.
    • Verify the IRS received date is correct. If there is no IRS received date, see IRM 3.11.3.5.2, Determining the Received Date, to help determine the date to code in red ink on the front page of the tax return.

    • If the secured return is an original return (not a signed copy) and the address on the return does not match what is on the Master File, Document Master File using CC ENREQ, if it is determined that the return has the most current address.

      Example:

      Many times a taxpayer will use their address at the time of the return period, which might not be their current address, especially when sending copies of a return that you are processing as an original. Research the Master File to see if the address matches.

    • If the Master File shows a different address, determine which address is more current by checking for a return address on the envelope or correspondence.

    • Perfect the Entity on the return per the most current address.

    • If the return is a copy of the original and Master File shows a more current address, edit the return to match Master file.

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

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    Exception:

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

  8. If the taxpayer provides a telephone number on a response to a CP 59 / CP 516 /CP 518 notice, tax return, or RD correspondence, document entity(s) with the new telephone number.

  9. If the taxpayer indicates "copy" on the return and you are sending the return to processing as the original, circle out the word "copy" on the return.

    Note:

    If any type of return is forwarded to another Service Center for processing, all return delinquency issues and coding, along with the preparation of the return for processing must be completed at the receiving site, and only the "Return" is sent to the Submission Processing center for processing.

  10. If more than one return is secured, such as a balance due and refund return, attach a Form 13133 to the "balance due" return to ensure the balance due tax return is processed and/or expedited prior to the refund due return.

    Note:

    The intent of this requirement is for the balance due return to post prior to allow the refund return(s) to offset to the balance due return. Refer to IRM 5.1.11.5, Secured Returns for additional guidance.

  11. If the taxpayer requests an installment agreement (IA) or CNC, refer to IRM 5.19.1, Balance Due. If you do not have the training required to do an IA or CNC request, route to the appropriate area for resolution.

  12. If the taxpayer response is for backup withholding, see IRM 5.19.2.5.4.5, Backup Withholding - C (BWH-C) Inquiries.

    Note:

    Refer the backup withholding issue "only" to the appropriate W&I or SBSE site per IRM 5.19.2.5.4.5, Backup Withholding - C (BWH-C) Inquiries.

  13. Once all necessary actions are completed, send the return for processing.

5.19.2.5.4.6.12.1  (01-16-2015)
IMF Response with Original Return ASFR or -L Freeze Present

  1. Refer all ASFR (ASGNI 8000) or "-L" Freeze (TC 420) responses with:

    1. TC 150 for $.00 with the literal "SFR" , Tax Class 2/ Doc code 10, and Julian date 887 in the DLN or the tax return shows "ASFR" on top of the tax return, , whether or not a TC 290 has posted to the account. To find the appropriate ASFR or ASFR Recon site, see IRM 5.19.2.5.4.4, IMF Automated Substitute for Return Program (ASFR) Referrals.

    2. The julian date is 888, or it may become an Exam case if it has julian date 887 with an -L freeze, open TC 420 and TC 150 for $.00 with the literal "SFR" , with Tax Class 2/ Doc Code 10 in the DLN to Exam function. See IRM 5.19.2.5.4.3, IMF Examination Referrals, for additional guidance.

      Note:

      If a joint return is received and the primary TIN has no ASFR (ASGNI 8000) or -L (TC 420) SFR, however there is ASFR (ASGNI 8000) or -L freeze on the secondary TIN, continue perfecting the return for processing, shown below. Make a photocopy of the return to send to ASFR or Exam function (see appropriate IRM sections on referrals as stated above). You must indicate on the referral that the original return was sent for processing and a photocopy of the return is being provided for further action for the open ASFR (ASGNI 8000) or -L (TC 420) SFR on the secondary TIN.

    3. If a TC 150 for .00 with a Tax class and Document code of 210 in the DLN, and the literal "SFR" to the right of the TC 150, posted to MF and/or IDRS, do not route the return to SP for processing. Route the return as follows:

      Note:

      You can also find routing information for ASFR Reconsideration returns on SERP Who/Where ASFR - Reconsideration Returns - Centralized Processing Sites.

    If ... Then ...
    There is no TC 290 and no TC 420 posted to the tax module and the TC 150 DLN begins with 19210 and does not contain 888 in the julian date Route all returns to the
    Brookhaven Campus,
    PO Box 9013, Stop 654,
    Holtsville, NY 11742-9013.
    There is no TC 290 and no TC 420 posted to the tax module and the TC 150 DLN begins with 18210 and does not contain 888 in the julian date Route to the
    Austin Compliance Services,
    PO Box 149338, Stop 5501,
    Austin, TX 78714-9338.
    There is no TC 290 and no TC 420 posted to the tax module and the TC 150 DLN begins with 89210 and does not contain 888 in the julian date Route to the
    Fresno Campus M/S 81304
    PO Box 24015
    Fresno, CA 93779
    There is a TC 290 posted and the TC 150 DLN begins with 19210 or the return is an International return Route to the
    Brookhaven Campus,
    ASFR Unit Stop 654
    PO Box 9013,
    Holtsville, NY 11742- 9013.
    There is a TC 290 posted and the TC150 DLN begins with 89210 and the return is not an International return Route to the
    Fresno Campus M/S 81304
    PO Box 24015
    Fresno, CA 93779
    There is a TC 290 posted and the TC 150 begins with DLN 18210 and the return is not an International return. Route to the
    Austin Compliance Services,
    PO Box 149338, Stop 5501,
    Austin, TX 78714-9338.
    There is an open TC 420 and AIMS Status 08 or below or closed TC 421 and AIMS Status 90 with any Non-Examined Disposal Code 20–99 Route to appropriate Account Management site per IRM 21.5.3.4.10.1, Non-Filer Reject Returns.
    There is no TC 290 and no TC 420 posted to the tax module and the TC 150 DLN begins with XX210 and contains 888 in the julian date Route to the appropriate Exam Campus based on XX in TC150 DLN
    There is an open TC 420 AIMS Status above 08 Route to the appropriate Exam Campus based on the TC 420 DLN or the AIMS organizational code found on Command Code AMDISA.
    There is a TC 300 posted to the tax module
    • Route to the BOD that assessed the tax. SBSE cases should be routed to the
      Brookhaven Campus
      Exam Operation,
      PO Box 9005, Stop 614,
      Holtsville, NY 11742–9005.

    • Atlanta, Andover, and Kansas City campuses should route all returns to
      Fresno ASFR,
      P.O. Box 24015, Stop 81304,
      Fresno, CA 93779–4015

    • OR
      Austin ASFR,
      P.O. Box 149338, Stop 5501,
      Austin, TX 78714–9338


    Note:

    When processing ASFR International Returns with Form 2555, see IRM 4.13.7–1, ASFR Reconsideration Returns- Centralized Processing Site, for information on where to route these cases.

5.19.2.5.4.6.12.2  (01-16-2015)
IMF Response with Original Return Does not Match CP Notice

  1. Compare the TIN, name, tax period and MFT on the return with the notice or inquiry on various posting errors:

    Note:

    For AM Call Site CSR's only, if you identify a TIN & Entity problem or Return Delinquency posting error and you are unable to resolve the case, see IRM 5.19.2.5.5.2, Return Delinquencies Due to Posting Errors.

    If And Then
    The taxpayer's return posted to the correct TIN, but the RD Notice TIN is incorrect and no returns have posted to the RD Notice Module. For CSCO and AM Employees,
    1. Input a TC 591 cc 075 using CC FRM49.

    2. Destroy the Return.

    Note:

    If a credit balance remains on the account, you must address prior to closing the module with a TC 590, 591 or 593. See IRM 5.19.2.5.7, Credit Balance Overview.

    For ACS and ACSS Employees,
    1. Input a TC 591 cc 025 using CC FRM49.

    2. Destroy the Return.

    3. Document AMS of actions taken.

    4. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND " .

    Note:

    If a credit balance remains on the account, you must see IRM 5.19.2.5.7, Credit Balance Overview before closing the module with a TC 590, 591 or 593.

    For FA Employees,
    1. Input a TC 591 cc 020 using CC FRM49.

    2. Destroy the Return.

    3. Document AMS with actions taken, if appropriate.

    4. If the account is on ACS, enter history code "TOC0,30,RDPND " .

    Note:

    If a credit balance remains on the account, you must see IRM 5.19.2.5.7, Credit Balance Overview before closing the module with a TC 590, 591 or 593.

    The Taxpayer's return has not posted to the correct TIN, but the RD Notice TIN is incorrect and no returns have posted to the RD Notice Module. For CSCO and AM Employees,
    1. Input a TC 591 cc 075 using CC FRM49.

    2. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return, and prepare the return for processing.

    3. Document AMS of actions taken.

    Note:

    If a credit balance remains on the account, you must see IRM 5.19.2.5.7, Credit Balance Overview before closing the module with a TC 590, 591 or 593.

    For ACS and ACSS Employees,
    1. Input a TC 591 cc 025 using CC FRM49.

    2. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return, and prepare the return for processing.

    3. Document AMS of actions taken.

    4. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND " .

    Note:

    If a credit balance remains on the account, you must see IRM 5.19.2.5.7, Credit Balance Overview before closing the module with a TC 590, 591 or 593.

    For FA Employees,
    1. Input a TC 591 cc 020 using CC FRM49.

    2. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return, and prepare the return for processing.

    3. Document AMS of actions taken, if appropriate.

    4. If the account is on ACS, enter history code "TOC0,21,RDPND" or "TOS0,21,RDPND" .

    Note:

    If a credit balance remains on the account, you must see IRM 5.19.2.5.7, Credit Balance Overview before closing the module with a TC 590, 591 or 593.

    The Taxpayer's return indicates a correct TIN, and the RD Notice TIN is incorrect. A return has posted under the incorrect RD notice module TIN,
    1. Transfer to the appropriate Accounts Management Unit. Document AMS of actions taken.

    2. Notate on the routing slip "TIN Related Problem" .

     
    Return was filed under an incorrect TIN or Tax Period. For CSCO and AM employees,
    1. Input a TC 594 cc 083 using CC FRM49.

    2. Transfer to the appropriate Accounts Management Unit, notate on the routing slip "TIN Related Problem" or "Return posted to incorrect tax period" .

    3. Document AMS of actions taken.

     
    For ACS and ACSS Employees,
    1. Input a TC 594 cc 033 using CC FRM49.

    2. Transfer to the appropriate Accounts Management Unit. Notate on the routing slip "TIN Related Problem" or "Return posted to incorrect tax period" .

    3. Document AMS of actions taken.

    4. If on ACS, enter history code "OADT,30,59433 " .

     
    For FA Employees.
    1. Input a TC 594 cc 020 using CC FRM49.

    2. Transfer to the appropriate Accounts Management Unit. Notate on the routing slip "TIN Related Problem" or "Return posted to incorrect tax period" .

    3. Document AMS of actions taken.

    4. If the account is on ACS, enter history code "OADT,21,59420 " .

     
  2. If the return was filed jointly, research the secondary TIN on the return to determine if the module was created with a previous TC 140 or TC 474 or if a return has posted.

    1. If a return has not posted to the Primary TIN, and the secondary TIN module has not been created with a previous TC 140 or TC 474 proceed to IRM 5.19.2.5.4.6.12, IMF Response with Original Return and prepare the return for processing.

      Note:

      If you receive a return on a module that has not been created with a previous TC 140 or TC 474, the taxpayer may be a "first time filer" (account is not on IDRS or Masterfile) or income was below filing requirement, do not input a TC 59X on IDRS, only annotate TC 59X on the return and forward for processing.

    2. If a return has not posted to the Primary TIN, and the Secondary TIN module has also been created with a previous TC 140 or TC 474, follow the guidelines below:

      If Then
      For CSCO and AM Employees,
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 084 on the secondary SSN using CC FRM49 and cross reference the Primary TIN.

        Note:

        Input the cross reference TIN on CC FRM 49.

      3. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return and prepare the return for processing.

      4. Document AMS of actions taken, as appropriate.

      For ACS and ACSS Employees,
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 034 on the secondary SSN using CC FRM49 and cross reference the Primary TIN.

        Note:

        Input the cross reference TIN on CC FRM49.

      3. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return and prepare the return for processing.

      4. Document AMS of actions taken, as appropriate.

      5. Enter history code "TOC0,30,594034" or "TOS0,30,594034 " .

      For FA Employees.
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 023 on the secondary SSN using CC FRM49 and cross reference the Primary TIN.

        Note:

        Input the cross reference TIN on CC FRM 49.

      3. Go to IRM 5.19.2.5.4.6.12, IMF Response with Original Return and prepare the return for processing.

      4. Document AMS of actions taken, as appropriate.

      5. If the tax module is on ACS enter history code "TOC0,21,594021" or "TOS0,21,594021" .

    3. If the secondary TIN has a return posted, follow the guidelines below:

      Note:

      Since the return is posted on the secondary TIN and you received a joint return, the TC 594 will be input on the primary TIN.

      If And Then
      The TC150 amount matches the Total Tax on the Return, For CSCO and AM Employees,
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 084 using CC FRM49. Enter the cross reference TIN on CC FRM 49.

      3. Document AMS of actions taken.

      4. Destroy the return.

      For ACS and ACSS Employees,
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 034 using CC FRM49.

        Note:

        Enter the cross reference TIN on CC FRM 49.

      3. Document AMS of actions taken.

      4. Destroy the return.

      5. If the tax module is on ACS, enter history code "TOC0,30,594034" or "TOS0,30,594034 " .

      For FA Employees,
      1. Verify credits and transfer to the correct TIN.

      2. Input a TC 594 cc 023 using CC FRM49.

        Note:

        Input the cross reference TIN on CC FRM 49.

      3. Document AMS of actions taken.

      4. Destroy the return.

      5. If the tax module is on ACS, enter history code "TOC0,21,594041" or "TOS0,21,594041" .

      The Primary TIN on the return is not in an open RD Status,
      1. Verify credits and transfer to the correct TIN.

      2. Destroy the return.

      3. Document AMS of actions taken.

      The posted return is not Joint (FS- 2) or the TC 150 amount does not match the total tax on the return. For CSCO and AM Employees,
      1. Input a TC 594 cc 084 using CC FRM49.

        Note:

        Input the cross reference TIN on CC FRM 49.

      2. Transfer to the appropriate Accounts Management Unit and notate on the routing slip "Spouse filed originally as single and now is filing as Joint" or "Total Tax does not match the TC 150" .

      3. Document AMS of actions taken.

      For ACS and ACSS Employees,
      1. Input a TC 594 cc 034 using CC FRM49.

        Note:

        Input the cross reference TIN on CC FRM 49.

      2. Transfer to the appropriate Accounts Management Unit. Notate on the routing slip "Spouse filed originally as single and now is filing as Joint" or "Total Tax does not match the TC 150" .

      3. Document AMS of actions taken.

      4. If the tax module is on ACS, enter history code "TOC0,30,594034" or "TOS0,30,594034 " .

      For FA Employees,
      1. Input a TC 594 cc 023 using CC FRM49.

        Note:

        Input the cross reference TIN on CC FRM 49.

      2. Transfer to the appropriate Accounts Management Unit. Notate on the routing slip "Spouse filed originally as single and now is filing as Joint" or "Total Tax does not match the TC 150" .

      3. Document AMS of actions.

      4. If tax module on ACS, enter history code "TOC0,21,594021" or "TOS0,21,594021" .

      The Primary TIN on the return is not in an open RD Status.
      1. Transfer to the appropriate Accounts Management area. Notate on the routing slip "Spouse filed originally as single and now is filing as Joint" or "Total Tax does not match the TC 150" .

      2. Document AMS of actions taken.

5.19.2.5.4.6.12.3  (01-16-2015)
IMF Response with Original Return Unsigned

  1. If an unsigned return is secured check:

    If ... Then ...
    a CP 59 /CP 759, is attached for taxpayer's signature(s) below the Jurat statement. Follow instructions IRM 5.19.2.5.4.6.12, IMF Response with Original Return.
    • No CP 59 /CP 759, attached

    • Or CP 59 / CP 759, is not signed

    • Or only one signature on a Married Filing Joint (MFJ) return

    • Or signed but not on the signature line(s)

    Follow procedures in the If/Then chart below

    Note:

    A minor child’s return signed by a parent is acceptable and never requires documentary evidence.

    Exception:

    If the return (child or taxpayer return) is signed by a guardian or other fiduciary representative, then there must be documentary evidence. For further guidance on documentary evidence, please follow IRM 3.11.3.7.1.3, Fiduciary Relationships, IRM 3.11.3.7.1.3.1, Documentary Evidence Requirements, IRM 3.11.3.7.1.3.2, Minor Child, or IRM 3.11.3.7.1.3.3, Power of Attorney (POA). See IRM 3.11.3.10.2, Documentary Evidence, for requirements for descendent returns.

    If ... Then ...
    Callsites are on the telephone with the taxpayer,
    (ACS Only)
    1. Tell the taxpayer the faxed return received cannot be accepted or processed until it is signed (both signatures for MFJ). Inform the taxpayer to fax the return (only the signature page of the Form 1040 if no other schedules are needed), immediately with the appropriate signature(s) and current date.

    2. When faxed return is received, or the signature page of the Form 1040, replace it and follow paragraph 8(d) below.

    3. If the taxpayer cannot immediately fax the return, tell the taxpayer to send the return to the appropriate ACSS mailing address.

    Taxpayer’s telephone number available, and there is an installment agreement request.
    (ACS Support and CSCO Only)

    Note:

    No phone call is required if the only issue is an unsigned return.

    1. Attempt to contact the taxpayer based on procedures in IRM 5.19.1, Balance Due, If there is no response to the phone call attempt, proceed to the next "then" box.

    2. Document AMS comments appropriately.

    Note:

    If you were unable to contact the taxpayer, based on phone call attempt, send back the attached Installment Agreement request (Form 9465, Form 433–F , Form 433–D , etc.) with the unsigned return.

    No telephone number available or only one signature for MFJ,
    (ACS Support Only)
    1. Circle out the received dates on the unsigned return

    2. Send the unsigned return back to the taxpayer using a cover Letter 4905, Request for Missing Signature(s) to Complete Return. Make sure you mail the return back to the current address on ENMOD.

      Note:

      Save the Letter 4905 to your desk top and fill in the required fields. Make sure you put the IRS return address and mail stop in the upper left hand corner of the Letter 4905. Print directly from your printer and attach it to the original unsigned return. Send it to the taxpayer in an envelope you addressed.

    3. Leave notes on AMS indicating:

      • Amount of the refund or balance due.

      • Indicate the unsigned return was sent back to the taxpayer for signature.

    4. Input a 30 day delay, "TOS0,30,LTR4905"

    No telephone number available or only one signature for MFJ,
    ( CSCO Only)
    1. Circle out the received dates on the unsigned return

    2. Send the unsigned return back to the taxpayer using Form 3531. Make sure you mail the return back to the current address on ENMOD.

    3. Leave notes on AMS indicating: "Unsigned return" .

      Note:

      If module is in status code (SC) 02, input a delay to prevent the next notice issuance while module is in monitor status, see IRM 5.19.2.5.1.1, Accelerate and/or Delay to TDI Status 03.

    Undelivered Letter 4905, Request for Missing Signature(s) to Complete Return
    (ACS Support and CSCO Only).
    1. If USPS yellow label is attached with a forwarding address, input address change (if more current than shown on CC ENMOD), and re-send Letter 4905, Request for Missing Signature(s) to Complete Return, ensuring to use the new address on the envelope.

    2. If USPS yellow label shows no new forwarding address or an old forwarding address, prepare Form 3210, Document Transmittal, and route to Files area in SP, see Exhibit 5.19.2-6, Files Address.

    3. Include in the remarks area on Form 3210, the taxpayer's name(s) and SSN(s) and include "File and maintain unsigned Tax Return in the ALPHA file".

    4. Document AMS comments of the actions taken.

      Note:

      Make sure to notate the SP files site you sent the Form 3210 so it will be easier to locate. See Exhibit 5.19.2-6, Files Address for appropriate sites.

    5. If the account is open on ACS, input:

      • "TOC0,30,UD4905-R" or "TOS0,30,UD4905-R" when notice is reissued

      • "TOC0,nn,UD4905" or "TOS0,nn,UD4905-R" when notice is not reissued. Reassign to the next appropriate function.

    Insufficient response returned with cover Letter 4905 (still not signed or signed in the incorrect location)
    (ACS Support and CSCO Only)
    1. Prepare Form 3210, Document Transmittal, attach to the unsigned return and route to the appropriate Files area in SP; see Exhibit 5.19.2-6, Files Address.

    2. Include in the remarks area on Form 3210, the taxpayer’s name(s) and SSN(s) and include "File and maintain unsigned Tax Return in the ALPHA file" .

    3. Document AMS comments of the actions taken. Indicate response received, but still unsigned.

    4. Send appropriate letter to the taxpayer informing them we could not process their return and that we will proceed with next action (Levy, Lien or process a return for them) if they do not provide us with a valid return.

      Note:

      Make sure to notate the SP files site you sent the Form 3210 so it will be easier to locate the unsigned return in the future. See Exhibit 5.19.2-6, Files Address for appropriate Sites.

    5. If case is open on ACS reassign to the next appropriate function.

5.19.2.5.4.6.13  (01-16-2015)
IMF Response with Copy of Return(s)

  1. This section provides guidance for working accounts when the taxpayer sends a copy of a return. Research IDRS to determine if the original return has posted.

    If And Then
    The original return has posted to the correct period and TIN and the amount of tax, taxable income, etc. matches what is on IDRS An open delinquency is present on the secondary taxpayer's account, See IRM 5.19.2.5.5.1, TIN and Entity Problem, taxpayer Filed as Spouse on Joint Return.
    No open delinquency is present on the primary and/or secondary taxpayer's account, Whether there is an original signature or not, destroy the copy of the return.
    The original return has posted to an incorrect TIN or period or the amount of tax, taxable income, etc. does not match what is shown on IDRS Intentionally left blank
    1. Control or refer the case per IRM 5.19.2.5.5, Return Delinquency TIN and Entity Research .

    2. See IRM 5.19.2.5.5.1, TIN and Entity Problems, for procedural guidance.

    1. The original return has not posted and was filed less than 10 weeks ago, or

    2. An RJ150/UP150 has posted to the module,

    Intentionally left blank
    1. This is a "refund" return, see IRM 5.19.2.5.4.6.12, IMF Response with Original Return.

    2. This is "not a refund" return, input a TC 594 cc 033, 58, 22 or 83 using CC FRM49.

    3. Module shows RJ150/UP150, contact the appropriate area (Rejects or Unpostables) for resolution.

    4. Document AMS with the date of original return filed.

    5. If the account is on ACS, enter history code "OADT,45,CMNTS" .

    1. The original return has not posted and was filed more than 10 weeks ago or,

    2. The taxpayer does not state when the original return was filed (consider the return filed more than 10 weeks ago.)

    RJ150/UP150 has not posted to the module. See IRM 5.19.2.5.4.6.12, IMF Response with Original Return.

5.19.2.5.4.6.14  (01-16-2015)
IMF Response Taxpayer Unable to File

  1. If the taxpayer states he/she is unable to file, provide the necessary information (i.e. Forms, IRP Docs, etc.), if available.

  2. If you are able to provide the information, see IRM 5.19.2.5.4.6.9, IMF Response Taxpayer Will File (Correspondence only) or see IRM 5.19.2.5.4.6.4, IMF taxpayer Liable.

  3. If you are unable to provide the information, first attempt to close using one of the three conditions below. Otherwise, proceed to paragraph 4 below.

    • "Income below Filing Requirements" see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).

    • "Refund Due" see IRM 5.19.2.5.4.6.2, IMF Refund Due.

    • Meets P-5-133 criteria for "Little or No Tax Due" , see IRM 5.19.2.5.4.6.3, IMF Little or No Tax Due.

  4. If you are unable to close the module as mentioned in paragraph 3 above, follow the table below for guidance:

    If Then
    Account is in Notice Status 02,
    1. See IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer), for further guidance.

    2. Document AMS of actions taken and findings.

    Account is in TDI Status 03.
    1. See IRM 5.19.2.5.1.2, Accelerate to Compliance Territory Office (Revenue Officer), for further guidance.

    2. Document AMS of actions taken.

5.19.2.5.4.6.15  (01-16-2015)
IMF Response Select Codes 88, Mortgage Interest and 89, High Mortgage Interest

  1. If an inquiry (telephone or correspondence) is received, from the taxpayer, questioning why they are required to file a tax return and the TDI select code is 88 or 89, continue as follows.

    Note:

    RD notices are sent to taxpayers if the mortgage interest paid is 50% or more of their total income.

    1. If CC IRPTR indicates one Mortgage Interest IRP document, question the taxpayer (call if a telephone number is available or send appropriate letter) of how the Mortgage Interest was paid.

      Note:

      Use selective paragraphs in Letter 2269C or open paragraph stating: Our records indicate the total income reported to the IRS is insufficient to the amount you paid for Mortgage Interest during the tax year. Please respond with an explanation how the Mortgage was paid and reason to support why you are not required to file a tax return.

    2. If CC IRPTR indicates more than one Mortgage Interest IRP document, question the taxpayer (call if a telephone number is available ) if any Mortgage Interest paid are from "Rental Properties" .

      Note:

      Use selective paragraphs in Letter 2269C or open paragraph stating: Our records indicate that you have two or more Mortgage Interest paid documents. If one or more of the documents is for rental properties, you must file a tax return to report the Rental income received. If you do not receive rental income, please respond with an explanation how the Mortgage was paid and why you are not required to file a tax return.

  2. If the taxpayer responds with an explanation how the Mortgage Interest was paid, follow the table below for guidance.

    Note:

    On the following chart below, if a telephone number is available attempt to contact the taxpayer of closing action in lieu of a closing letter. If on the telephone and you determine the taxpayer is required to file per chart below, then provide the taxpayer with the required return and mailing information.

    If And Then
    If the taxpayer states the mortgage interest was paid by another person, Their total income is below filing requirements,
    see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements),
    1. Inform the taxpayer they are not required to file and we will take the necessary actions to close the account.

    2. Input a TC 590 with appropriate closing code.

    3. Document AMS /ACS accordingly.

    Note:

    If the account is on ACS, enter history code "TOC0,30,RDPND" , or "TOS0,30,RDPND" .

    Exception:

    FA employees use 21.

    The taxpayer states the mortgage Interest was paid by another person, Their income is above filing requirements,
    1. Inform the taxpayer they are required to file the tax return including the Mortgage Interest on Schedule A or E, if applicable.

    2. Document AMS/ACS accordingly.

    The taxpayer states they have rental properties, Their income is above filing requirements,
    1. Inform the taxpayer our records indicate they are required to file. Instruct the taxpayer to include all income including their rental income.

      Note:

      Rental income must be reported on either Schedule A or E, if applicable.

    2. Document AMS/ACS accordingly.

    The taxpayer states they do not have rental properties, Their income is above FR,
    1. Inform the taxpayer they are required to file.

    2. Document AMS/ACS accordingly.

    The taxpayer states they do not have rental properties and explained how the mortgage interest was paid. Their income is below FR.
    1. Inform the taxpayer they are not required to file.

    2. Input TC 590 with appropriate closing code for not liable see IRM 5.19.2.5.4.6.1, IMF Response Taxpayer Not Liable (Income Below Filing Requirements).

    3. Document AMS/ACS accordingly.


    Note:

    If the account is on ACS, enter "TOCO,30,RDPND" , or "TOS0,30,RDPND" .

    Exception:

    FA employees use 21.


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