8.20.5  Carding New Receipts

Manual Transmittal

October 20, 2014

Purpose

(1) This transmits revised IRM 8.20.5, Account and Processing Support (APS), Carding New Receipts

Background

During Fiscal Year 2013, the Account and Processing Support (APS) Internal Revenue Manuals (IRM) were reorganized to incorporate all APS Guidance for Carding Actions into IRM 8.20.5, Interim Actions into 8.20.6, and Closing Actions into 8.20.7. The crosswalk of where each section was copied from and moved to in each APS IRM chapter is available in the revision dated November 5, 2013.

Material Changes

(1) This revision includes editorial changes and its content is updated to conform to the Plain Language Writing Style Guidelines.

(2) Cross-references to Appeals IRMs which no longer contain APS guidance are removed due to the completion of the FY 13 APS IRM Reorganization Project

(3) All non-APS specific guidance has been removed.

(4) This revision replaces all references for Form 12153-A with Form 14461 for Collection Due Process Cases.

(5) This revision includes an update to the carding instructions for a Collection Due Process/Equivalent Hearing (CDP/EH) Offer In Compromise (OIC) receipt based on IRM 8.23.6.1.2, OICs Received with CDP or EH Case.

(6) This revision incorporates the Appeals Judicial Approach and Culture (AJAC) changes for APS from Interim Guidance Memorandum AP-08-0614-0003.

(7) IRM 8.20.5.5.2 changes the reference from carding in two calendar days to business days.

Effect on Other Documents

This IRM supersedes the information in IRM 8.20.5Account and Processing Support (APS), Carding New Receipts, dated January 10, 2014.

Audience

Appeals

Effective Date

(10-20-2014)

John V. Cardone
Director, Policy, Quality and Case Support

8.20.5.1  (10-20-2014)
Overview

  1. As the Internal Revenue Service’s (IRS) dispute resolution forum, Appeals receives a variety of cases. This section contains procedures for

    • Verifying administrative files on new Appeals receipts

    • Acknowledging receipt of cases from the various source functions, including Small Business, Self Employed (SB/SE), Large Business and International (LB&I), Wage and Investment (W&I), IRS campuses and other Appeals offices and

    • Establishing cases and returns on the Appeals Centralized Database System (ACDS)

8.20.5.2  (10-20-2014)
General Statute Responsibility for Account and Processing Support (APS)

  1. 8.21.2 is the primary source of reference used by APS employees when verifying, updating, and monitoring statute dates on Appeals' cases.

  2. APS is responsible for verifying and monitoring the statute dates on all tax periods or returns under its jurisdiction. APS has jurisdiction of cases under the following circumstances:

    1. Case is input into Appeals Centralized Database System (ACDS) as being in APS possession

    2. Case is date stamped "received" by APS but not yet carded on ACDS

    3. Case is transmitted to another location but no acknowledgment is received from the intended recipient

8.20.5.3  (10-20-2014)
General Carding Rules

  1. These general rules apply to all cases.

  2. APS is responsible for researching ACDS and e-Case for existing cases before carding new cases.

  3. The APS TE will search both the open and closed databases prior to establishing a new receipt to determine if:

    1. The taxpayer has a previous case on ACDS and if so,

    2. Whether or not it is part of another WUNO.

  4. The above steps will help to eliminate additional case updates such as:

    1. Changing the WUNO.

    2. Adding a key taxpayer name and key TIN.

    3. Changing the key tax period.

    4. Duplicating cases that are already on ACDS.

8.20.5.3.1  (10-20-2014)
Receiving Returns and Administrative Files

  1. The administrative file usually contains one or more examined tax returns, the examination report, and all papers, correspondence, and other documents relative to the taxpayer’s liability for the year or years involved.

  2. The administrative file may also consist of collection related documents such as history, correspondence, financial information and other documents related to collection action taken on the taxpayer.

8.20.5.3.1.1  (11-05-2013)
Contents of the Administrative File

  1. Depending on the type of case, the administrative file may contain the returns of the taxpayer, consent to extend the statute if needed, examining officer's report, and other documents relating to the taxpayer's liability for the year or years involved, such as protests or petitions, claims for refund or abatement, and other pertinent documents or papers.

  2. With the exception of Collection, Penalty Appeals, and Campus Claim cases, administrative files are transmitted to Appeals, along with a full Integrated Data Retrieval System (IDRS) command code AMDISA print for each return reflecting a current Audit Information Management System (AIMS) Status of 81, or an IDRS command code AMCLS print for each return.

  3. If the taxpayer electronically filed the tax return, the administrative file will include an IDRS TRPRT print. There is no hard copy paper return when returns are electronically filed. Secure a transcript to ensure that the return was electronically filed. See IRM Part 2, Information Technology, and Document 6209, IRS Processing Codes and Information, for details on IDRS command codes.

8.20.5.3.1.2  (10-20-2014)
Verifying Administrative File Contents

  1. APS will verify the contents of the administrative file to determine if all documents, returns, etc. which are listed on the transmittal are present in the file upon receipt.

  2. APS will determine the statute date and ensure that there are at least 365 days remaining on the assessment statute before accepting the case. If there are less than 365 days remaining on the assessment statute, the APS Tax Examiner will not accept the administrative file in Appeals. See IRM 8.21.2.3 for additional types of cases not accepted in Appeals. The APS Tax Examiner will alert their Processing Team Manager (PTM) when cases with less than 365 days remaining on the assessment statute are received in Appeals. See IRM 8.21.2.4 for additional guidance.

    Note:

    Exceptions to the 365 days are: 180 days for when Compliance Examination sends a case back to Appeals that Appeals returned to them previously, 270 days for Estate tax cases (Form 706), and 270 days for IRC 6206 Excise tax cases. Refer to IRM 8.21.2.4 for steps to take when the statute date is uncertain. See 8.21.2.3 and the next section below, IRM 8.20.5.3.1.3 for additional types of cases not accepted in Appeals.

    Note:

    For instructions on docketed cases received in Appeals and processing information for Non Petitioning Spouse cases see IRM 8.20.5.5.2 and IRM 8.20.6.3.7 . Docketed cases and Non Petitioning Spouse cases should NOT be returned to the originating function.

  3. Once the contents of the administrative file and the statute date are verified, date stamp the Form 3210, sign the acknowledgment copy of the Form 3210 and return it to the originator. Make a copy of Form 3210 to remain in the case file.

8.20.5.3.1.3  (10-20-2014)
Cases Not Accepted by Appeals

  1. There are several cases that Appeals will not accept.

  2. If an APS employee receives any of the following cases for carding in, alert the PTM prior to returning the case to Compliance for direction on how to proceed.

    1. Cases where the Assessment Statute Expiration Date (ASED) statutory period of limitations has expired on any tax year in the case.

      Note:

      Cases where the Collection Statute Expiration Date (CSED) statutory period of limitations has expired on a CDP/Equivalent Hearing (EH) case are accepted in Appeals.

    2. Cases with less than 365 days remaining on the assessment statute. This applies to cases received from Compliance Examination. See exceptions in the section above, IRM 8.20.5.3.1.2.

    3. OIC cases where the taxpayers appealed too late. Statute dates on untimely appeals are not suspended.

      Note:

      Most Collection cases can now be appealed per statutory provisions. Those provisions may suspend the statute dates.

    4. Preassessed Trust Fund Recovery Penalty (TFRP) Taxpayer Bill of Rights 2 (TBOR2) cases where the taxpayer appealed beyond the 60 days from the date of Letter 1153 (DO).

      Note:

      Letter 1153 (DO) gives the taxpayers 60 days to appeal a proposed TFRP assessment (75 days if the letter was mailed to an address outside the United States). If a taxpayer appeals a proposed TFRP beyond the 60 day period, there is no suspension period while the untimely filing is rejected (although the assessment period will not expire until the date 90 days after the date on which the 60-day notice was mailed or delivered in person). In counting the 60 days, do not include the date on the Letter 1153 (DO) or the delivery date, if the letter was delivered in person by the revenue officer.

      Note:

      In determining the timeliness of the protest, the guidelines in IRC 7503 should be followed, which state, in part: "When the last day prescribed under authority of the Internal Revenue laws for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday."

      Note:

      If the protest was not timely, the case will be returned to the Collection Technical Services Advisory control point monitor for assessment. To receive an appeal, the taxpayer will be required to file a Form 843, Claim for Refund and Request for Abatement. If the ASED will expire within 30 days, the case will be returned to the originator.

    5. Cases that are in 90-day status.

      Note:

      If a 90-day case has Form 8626 (Agreement to Rescind Notice of Deficiency) signed by both the taxpayer and/or representative, and the designated official of the Internal Revenue Service, the case is accepted as long as at least 365 days remain on the statute.

    6. Cases that involve Jeopardy or Termination Assessments, unless a Statutory Notice of Deficiency (SND) has been issued. The exception to the above is cases received in Appeals for administrative review, pursuant to IRC 7429.

    7. Cases that have an unassessed agreement in the file.

    8. CDP cases that do not include Form 14461 or Form 12153-B.

    Note:

    See IRM 8.21.2.3, APS Statute Responsibility, for additional information.

8.20.5.3.1.4  (11-05-2013)
AIMS Prints in the Administrative File

  1. With the exception of Collection, Penalty Appeals, and Campus Claim cases, administrative files are transmitted to Appeals, along with a full IDRS command code AMDISA print for each return reflecting a current Audit Information Management System (AIMS) Status of 81, or an IDRS command code AMCLS print for each return.

    1. Update AIMS to Status 80, if the return is non docketed, or 82 if the return is docketed, using IDRS command code AMSTUA.

    2. Verify the statute date on AIMS and, if necessary, update the statute date using IDRS command code AMSTUB.

8.20.5.3.1.5  (10-20-2014)
Case Routed to an Incorrect Appeals Office

  1. If APS receives a new case for carding and it should have been routed to another Appeals Office, the receiving APS office must card the case on ACDS prior to transferring it to the appropriate Appeals Office. Carding the case will ensure the statute is protected.

8.20.5.3.1.6  (10-20-2014)
Workunit Number (WUNO)

  1. Workunit numbers (WUNOs) will be established on ACDS as follows:

    1. Non-docketed - generally cases that have returns with the same Taxpayer Identification Number (TIN) and Master File Tax (MFT) code received at the same time (that are included in a Revenue Agent's Report (RAR) or other tax computation document) will be one WUNO

    2. Docketed - every docket number will be a separate WUNO

    3. Non-Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Flow Through Entity Returns - will be a separate WUNO

  2. Special procedures will apply for the following types of cases covered later in this IRM:

    1. Audit Reconsideration - See IRM 8.20.5.9

    2. Claims - See IRM 8.20.5.10

    3. Collection Appeals Program and Jeopardy Levy - See IRM 8.20.5.12

    4. Collection Due Process - See IRM 8.20.5.13

    5. Docketed Cases (Non-Petitioning Spouse) - See IRM 8.20.5.5

    6. Estate and Gift - See IRM 8.20.5.22 and IRM 8.20.5.31

    7. Offer in Compromise - See IRM 8.20.5.33

    8. Penalty Appeals - See IRM 8.20.5.34

    9. Preparer Penalty - See IRM 8.20.5.34

    10. Non-TEFRA Flow Through Entity Returns- See IRM 8.20.5.4.1.3.3

    11. Relief from Joint and Several Liability (Innocent Spouse) - See IRM 8.20.5.32

    12. Transferee/Transferor - See IRM 8.20.5.39

  3. In those special situations above where multiple cases are assigned to a WUNO, the following rules apply:

    1. A WUNO must have one case designated as the "key case"

    2. The APS Tax Examiner will enter the key case first and the related cases last.

    3. See IRM 8.20.5.3.5 for additional information.

8.20.5.3.2  (10-20-2014)
AIVP Create Validation

  1. Each case in the WUNO must have a Create Validation completed using the Appeals Inventory Validation Process (AIVP) Validation Tracking System (VTS). The APS Tax Examiner will be required to validate the data upon creation of the case. A Create Validation is required prior to assignment of the case to the Appeals Technical Employee (ATE). Refer to IRM 8.10.3 , Appeals Inventory Validation Process, for additional information regarding the AIVP. and the VTS.

  2. The ACDS critical data fields that the APS Tax Examiner and Case Processors have responsibility for in the Create Validation are indicated below with an "X" in the "Create Validation" column:

    ACDS Critical Data Fields (CDFs) Create Validation
    Taxpayer Name X
    Taxpayer Address X
    Power of Attorney (POA) X
    POA Address X
    Taxpayer Identification Number (TIN) X
    Master File Tax Account Code (MFT) X
    Source X
    Type X
    Tax Period X
    Primary Business Code (PBC) X
    Statute Date X
    Statute Code X

    Note:

    The Appeals Team Manager (ATM) cannot assign a case to an ATE until the Create Validation is completed for all cases in the WUNO. If a Create Validation is missing, the ATM will receive an alert to contact APS for assistance.

8.20.5.3.3  (11-05-2013)
eCase (8.2.1.3.4 is covered below)

  1. eCase allows for the electronic transfer of data from Appeals’ suppliers and customers to Appeals.

  2. Appeals receives data from the Examination Returns Control System (ERCS), the Automated Offer In Compromise System (AOIC), the Automated Collection System (ACS), and the Integrated Collection System (ICS).

  3. Rather than manually inputting data in to ACDS, eCase automatically transfers specific data fields.

  4. The APS TE requesting transfer of the information from eCase must verify the data and enter additional information or make corrections when necessary.

8.20.5.3.4  (11-05-2013)
Issue Management System (IMS)

  1. The Issue Management System (IMS) is Large Business and International’s (LB&I's) case management system. Appeals’ use of IMS became mandatory for working all LB&I cases, as well as most Small Business/Self Employed (SB/SE) Estate and Gift (E&G) and Excise cases in December 2011. The Appeals Centralized Database System (ACDS) will remain the Appeals system of record for case management and recording time on cases. For step by step instructions for IMS, please refer to the Appeals Training Module for APS, ELMS course number 39821.

  2. The primary role of the APS employee in IMS is to assign a case, re-assign a case, or re-open a closed case. The APS employee has permissions to view Appeals cases to be assigned, opened (currently assigned), and closed on the Appeals portal. An APS employee may assign an Appeals case to an Appeals Team Manager (ATM), re-assign an open Appeals case, or re-open a closed Appeals case on the web portal.

  3. An OnLine 5081 is required to gain access to IMS. Each user should request the “IMS-PRODUCTION-LMSB USER ACCESS” application and add a statement indicating “An Examination Returns Control System (ERCS) ID is not required.”

8.20.5.3.5  (10-20-2014)
Related/Reference Cases on ACDS

  1. A WUNO is defined as a unique grouping of one or more related cases being considered for settlement or decision purposed.

  2. When multiple cases are assigned to a WUNO, there must be one case designated as the "key case" .

    • KEYTP (Key Taxpayer Case of the WUNO) - If the case is the key case, leave this item blank.
      If the case is a related case, enter the name of the key case in this field to create a related record within the same WUNO.

  3. Establish a non-taxable return as a related reference case:

    • TYPE - REF

    • STATDATE - normal or extended statute

  4. TFRP (Trust Fund Recovery Penalty) - When a collection case is related to unpaid employment tax and the Service is attempting to hold individuals responsible for the tax due. These individuals have appeal rights. Enter data as follows:

    • TFRCorp (Trust Fund Recovery Corp Name) - Name of the Trust Fund Corporation related to the taxpayer.

    • TFRTin - Enter the TIN on the related corporation

  5. STATUS (Status of WUNO) - This item is updated by the ATE in ACDS to reflect the current state of action of the WUNO in their inventory. See ACDS Utilities Menu for a list of current status codes.

8.20.5.4  (10-20-2014)
General Carding Rules for Non-Docketed Cases

  1. Appeals’ responsibility includes but is not limited to cases that involve a tax liability. In most cases, a 30 or 60 day letter has been issued to the taxpayer by the Compliance Examination function in either the field or campus. Taxpayers request an Appeals conference and, when required, file a protest against the proposed deficiency, overassessment, or notice of determination. A non-docketed case is a protested case in which the taxpayer has not filed a petition with the United States Tax Court.

  2. The APS Tax Examiner carding the case on ACDS will take the following actions -

    Step Action
    1 Enter items on the ACDS case inventory and return information screens as applicable. See IRM 8.20.3, Appeals Centralized Database System, for additional information on the critical data fields requirement in ACDS.
    2 Verify the data is correct and submit the validation before executing the command to generate the case summary card. When the case summary card(s) is generated, attach it to the top of the administrative file.
    3 Forward the case to the Appeals Team Manager (ATM) or designated official in the office who assigns the WUNO to an Appeals Technical Employee (ATE) following local procedures. The ATE makes a preliminary review of the case and validates the critical data fields for each return within an assigned case. If corrections are required to critical data fields, the ATE will update the case information using the Assignment Validation.

8.20.5.4.1  (10-20-2014)
Non-Docketed Receipts

  1. The APS Tax Examiner will verify the contents of the administrative file to determine if all documents, returns, etc. listed on transmittal Form 3210 were received.

  2. The administrative file may contain the following items:

    1. original or copy of one or more examined tax returns

    2. valid consents extending the statute (if needed)

    3. examining officer's report

    4. other documents relating to the taxpayer's liability for the year or years involved, such as protests, claims for refund or abatement, and other pertinent documents or papers

  3. Depending on the type of case, the administrative file may also contain the following collection documents:

    1. history

    2. correspondence

    3. financial information

    4. other documents related to collection action taken on the taxpayer

  4. Determine the statute date and ensure there are at least 365 days remaining on the statute before accepting the case. See exceptions in IRM 8.20.5.3.1.2 for exceptions and guidance. See IRM 8.21 , Appeals Statute Responsibility, for detailed procedures on statutes and consents.

  5. Once the contents of the administrative file and the statute date are verified, the APS Tax Examiner will sign the acknowledgment copy of the Form 3210, return it to the originator, and keep a copy in the case file.

8.20.5.4.1.1  (10-20-2014)
Non-Docketed Case Situations Requiring an Original Return

  1. Original returns must be received in the following situations:

    1. fraud cases

    2. delinquent returns

    3. jeopardy assessments

  2. The cases referred to in (1) above may be accepted without the original return if the case file contains an unfilled requisition, a transcript of account, and a copy of the return. However, fraud cases are only accepted under this paragraph if the missing original returns do not seriously weaken the Government’s position. The Appeals Technical Employee (ATE) will make this decision.

  3. If it becomes necessary for Appeals to issue a notice of deficiency, or if the case develops into one of the other exceptions in (1) above, the ATE may request the original return through APS.

8.20.5.4.1.2  (10-20-2014)
AIMS Status Updates

  1. The administrative files are transmitted to Appeals, along with a full AMDISA for each return reflecting a current AIMS Status of 81, or an AMCLS print for each return.

    1. Update AIMS to Status 80 if the return is non-docketed using IDRS command code AMSTUA.

    2. Verify the statute date on AIMS and, if necessary, update the statute date using IDRS command code AMSTUB.

  2. An IDRS search for TRDBV/TRPRT can be used to secure a print of a return filed electronically. See http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/trdbv_form.htm for additional information.

8.20.5.4.1.3  (10-20-2014)
Non-Docketed Case Carding ACDS

  1. Establish WUNOs on ACDS as follows:

    1. Non-docketed - generally cases that have returns with the same TIN and MFT received at the same time and that are included in an RAR or other tax computation document are one WUNO.

    2. Non-TEFRA Flow Through Entity Returns - is a separate WUNO.

  2. In situations where multiple cases are assigned to a WUNO, the following rules apply:

    1. A WUNO must have one case designated as the "key case."

    2. A WUNO must have one or more cases designated as the "related case(s)."

  3. Use of key and related cases is most common when establishing Pre-90 Day cases Card-in multiple case workunits as follows:

    1. the key case is the joint return

    2. a related case is the petitioning spouse or the requesting spouse

    3. a related case is the non-petitioning spouse or the non-requesting spouse

  4. The APS Tax Examiner will validate all critical data fields (CDFs) after establishing the case on ACDS. Refer to IRM 8.20.5.3.2 for the Create Validation critical data fields. Users will have the ability to access the validation screens by using "Search" , selecting "Validation(s)" and choosing the type of validation to be performed.

8.20.5.4.1.3.1  (10-20-2014)
Reference Returns

  1. Reference returns should be controlled on ACDS. If the return is a Non-TEFRA partnership return, Form 1065, S Corporation, Form 1120S, or Trust, Form 1041, refer to IRM 8.20.5.4.1.3.3.

  2. If the name and TIN on the reference return are the same as those on the case being established, the reference return will be controlled at the return level as part of the key case.

  3. If the name and TIN on the reference return are different, it will be established as a separate case within the WUNO. In this situation, the TYPE - REF.

  4. In either situation, include the following information:

    • STATUTE DATE - Enter the actual assessment statute date, if applicable

    • STATUTE CODE - if the assessment statute is not open, enter RFRTN

  5. Update AIMS to Status 80, if the case is on AIMS when it is received in Appeals. Reference returns are non-docketed and should be updated to Status 80 even if related to a docketed case that is in Status 82.

  6. Reference returns may be identified by the ATE after the original return is carded and when this occurs, the Received Date and Assigned Date will reflect the date the reference return is identified.

8.20.5.4.1.3.2  (10-20-2014)
Sending the New Case to the Appeals Team Manager (ATM)

  1. After carding in a new receipt on ACDS, the APS Tax Examiner will complete the Create Case Validation, confirming that all information in the Original Data Field matches the source documents. If any critical data field has an error, the APS Tax Examiner will:

    1. Change ACDS using the Update CDF fields

    2. Designate the change as a Normal Update (N) or Error Correction (E)

    3. Validate that the information in ACDS is now correct PRIOR to sending the case to the ATM for assignment

  2. The ATM will not be able to assign a case if it is received without a Create Case Validation. The ATM will receive an error message, and will be prompted to contact their APS unit for assistance.

  3. APS Tax Examiners must prepare an ACDS electronic Form 3210 to send a case to the ATM for assignment

  4. APS Tax Examiners must monitor every case that leaves APS whether for assignment, rework, etc. regardless of whether or not they are physically located in the same office

  5. APS Tax Examiners must follow-up on all unacknowledged Forms 3210 ten days old or older, utilizing Form 10946 to verify transfer and receipt of the case

  6. For information on what the ATM does with the case upon receipt for assignment, see IRM 1.4.28.3.1.

8.20.5.4.1.3.3  (10-20-2014)
Non-TEFRA Flow Through Entity Returns

  1. A non-TEFRA flow through entity may be a partnership return (MFT 06), an S corporation (MFT 02) or a trust (MFT 05). Prior to January 1, 2002, these returns were reference returns linked to an investor key case in a WUNO. Effective January 1, 2002, a non-TEFRA flow through entity return will be established as a separate WUNO on CASES. If the return is linked on the Partnership Control System (PCS), there will be a Partnership Information Control File (PICF) Code 2 on the AMDISA print.

  2. APS will follow general carding procedures for non-TEFRA Flow Through Entity Returns and enter the following on the CASES inventory screen:

    1. TYPE - Enter the code that represents the type of tax or penalty. NOTES -Enter "Non-TEFRA Key Case" and "Related to: NNNNNNNNNN" . (NNNNNNNNNN = investor case WUNO(s)). You may include other identifying information as space permits.

  3. and on the RETURNS information screen enter:

    1. AIMS Indicator - Non-TEFRA key cases are required to be on AIMS. Enter Y if the return is on AIMS or N if the return is not on AIMS. If the return is not on AIMS, take action to establish the case on AIMS

    2. STATUTE DATE - Enter the actual assessment statute date when applicable

    3. STATUTE CODE - Enter "RFRTN"

8.20.5.5  (10-20-2014)
General Information for Docketed Cases

  1. See below for Docketed Cases introduction, Docketed Case definitions, and Docketed Case designations.

8.20.5.5.1  (10-20-2014)
Docket List

  1. Counsel transmits the list to employees in the functions that issue Notices of Deficiency. The list helps these functions determine if a case is docketed so that they can process the case appropriately. The Docket List is a list of cases docketed by U.S. Tax Court. The list is prepared by Counsel after the Tax Court serves the taxpayer's petition(s) to the Commissioner. Counsel emails the list as an attachment to employees in various Operating Divisions/functions who are members of an email distribution list maintained by Counsel. The list is used as a tool to help source functions determine if a case is docketed.

  2. The Docket List shows:

    • Docket List Number

    • Date List Prepared (by Counsel)

    • Date Petition Served (on IRS)

    • Docket number(s)

    • Notice Date (date of notice of deficiency or other determination letter or notice)

    • Taxpayer(s) name, address, and TIN(s)

    • Year(s) petitioned

    • Signed by Both? (Y, N or Blank)

    • Postmark (Date or Blank)

    • Source of Notice (If known. Where no deficiency notice is attached to the petition, the source is listed as unknown.)

    • Appeals Office

    • Counsel Office

  3. Counsel posts the Docket List as a file to a server. Appeals downloads the Docket List file from the server and posts it on its automated system, "Docket Information Management System (DIMS)" , a sub-system of the Appeals Centralized Database System (ACDS). DIMS is used in lieu of the hard-copy Docket List.

  4. From DIMS, users are able to print either the entire list or sort the list so that it contains only the cases they control or need to locate.

  5. The automated DIMS system is available to both Appeals and non-Appeals employees responsible for issuing and monitoring notices or letters describing Tax Court rights.

  6. Access to DIMS is obtained through the Online 5081 process.

  7. Account and Processing Support (APS) uses DIMS to monitor the Docket List.

8.20.5.5.1.1  (10-20-2014)
Docket List Responsibilities

  1. Operating Divisions and functions that issue notices of deficiency, notices of determination, or any other letter or notice with United States Tax Court rights are responsible for monitoring the Docket List to determine if a petition is filed in response to a letter or notice they issued.

  2. If a petition is filed, the case must be located, processed for closing and transmitted to Appeals within ten (10) calendar days from receipt of the Docket List.

  3. The U.S. Tax Court requires the filing of an "answer" by the Commissioner of Internal Revenue in all docketed tax cases.

  4. Employees responsible for monitoring the Docket List must be aware of and take all necessary actions to ensure Counsel receives docketed administrative files with sufficient time remaining to meet the due date established by the U.S. Tax Court to answer the petition.

  5. The "answer due date" , or the time within which the petition must be answered, is set by the Tax Court at sixty (60) days from the date the petition is served on the IRS.

    Note:

    The answer due date is clearly identified on the TLCATS Case Screen 1 in the "Answer Due Date" field.

  6. Counsel needs time to prepare its answer, therefore APS must make every effort to card the administrative file and send it to Counsel via a mail delivery system that ensures it is received in Counsel no later than twenty (20) days prior to the answer due date.

  7. A taxpayer may send supporting documentation to business units in response to a Statutory Notice of Deficiency. At times the business unit accepts the information and "no changes" the case. In a streamlined process, the business unit will send (via fax or email) a signed Form 14121, No Change Certification, to the Field Counsel attorney assigned the case and the APS DIMS Team. The business unit certifies that it has reviewed the documentation and that no changes are needed to the return as filed. The "Docketed No Change Certification" procedure:

    1. Enables the business units to close their case and avoid retrieving and sending the administrative file to Appeals/Counsel,

    2. Notifies the APS DIMS Team that the administrative file is not needed, stopping efforts to retrieve the file and ensuring proper closure of the case on DIMS and

    3. Provides Counsel with sufficient information to concede the case on answer.

8.20.5.5.1.2  (10-20-2014)
Time Line From Date Petition Served to Answer Due Date

  1. The following table provides a time line for various actions required, beginning on the day the petition is served on the IRS.

    DAY ACTION REQUIRED
    1 Petition served on IRS.
    1 - 3 Docket List prepared and distributed
    Docket List uploaded to DIMS.
    1 - 10 ODs/functions monitor Docket Lists to identify, locate, close, and transmit docketed files to Appeals.
    11 - docketed administrative file received in Appeals ODs/functions continue process to identify, locate, close, and transmit docketed files to Appeals.
    APS DIMS Team begins searching for docketed files not yet received 11 calendar days from receipt of the docket list.

    Note:

    Within 2 days of receipt, APS acknowledges, cards and transmits file to Counsel for answer.

    40 APS DIMS Team creates dummy file for answer if file not received timely.
    60 Answer Due Date

8.20.5.5.1.3  (10-20-2014)
Docket Information Management System (DIMS)

  1. In Appeals, the APS DIMS Team is responsible for downloading the Docket List file Counsel placed on the server and posting it on Appeals' automated system, "Docket Information Management System (DIMS)" .

  2. Each day that a new docket list is received, the DIMS Tax Examiners (TEs) will take the following steps:

    • Print new docket lists (for their assigned AOCs),

    • Research TLCATS and print Case Screen 1 (CSC1) for each docket number, and

    • Research ACDS (open and closed) by Name and EIN:

    IF... THEN...
    If the case is controlled and open on ACDS Let the controlling office know (via email) that the TP has petitioned, fax the CATS print to the PTM. (Case Processor can be utilized for this assignment). When the docket number has been entered and ACDS has been updated to DCJUR, close DIMS.
    If the case is closed on ACDS Coordinate with the PTM in the controlling office to request they reopen the ACDS record and inform Counsel the original admin file has been ordered. Request the refile DLN from files, forward to Counsel when received and close DIMS. (Note – DIMS TEs will require additional assistance from the controlling PTM for CDP cases).

    Note:

    If the case was previously worked and closed by Appeals and the petition is late filed greater than 30 days after default/closure date, the DIMS Team will not request the case be reopened on ACDS. The DIMS Team will create a new skeletal record and monitor the case for dismissal and closure.

    If the case is not controlled on ACDS Control a skeletal record (under Fresno’s AOC) using the information on the CATS print, action code DKLSTXXX (XXX = the AOC from the docket list) and TODATE = date petition served. The following fields are mandatory: TPNAME, WUNO, MFT, TYPE, TIN, SOURCE, DO, RECV Date, Key Period, Docket Number, Address, SND TYPE, SND Date, and Tax Periods.

    Note:

    Any case with an expired "SNEXP Date" or a date that will expire in the next 10 days will require immediate research.

  3. Each month the DIMS TE (or PTM) will print a DKLSTXXX follow up report by AOC.

  4. For any case showing on the list with a follow up date of 11 days or more:

    • Research AMDISA - note the status and status date on DIMS and:

      IF... THEN...
      The AIMS status is 81/80/82 Contact the PTM for that AOC and verify receipt of the admin file and give notice that you will be transferring the skeletal record on ACDS to their AOC for them to update. Once receipt is verified, transfer the skeletal record to that AOC and close DIMS.
      The AIMS status indicates that the case is open in Compliance or a Campus Contact the source of the notice and request the admin file be forwarded to the correct Appeals Office. Note the name, date and phone number of the contact on DIMS.
      The status is 90 Research TXMOD and order the TC 421, TC 150 (for original return – unless electronically filed), and REFILE DLN (if different than the TC 421). Use the special search to order the DLNs and request the documents be forwarded to your attention. Note the DLN and Date ordered on DIMS.
      The return is not controlled on AIMS (open or closed) Further research will be required using TXMODA, IMFOLT, or BMFOLT.
  5. For any case showing on the list with a follow up date of 40 days or more:

    • Create a dummy file following established procedures.

    • Review the caption on CATS and compare it with the filing status on IDRS.

    • Create MFT 31 Case Summary Cards for possible NPS cases controlling the statute date on ACDS.

    • Contact the Field Counsel Attorney (via email) and request notification if a NPS assessment is required.

  6. In Appeals, the responsibility for locating administrative files for all docketed cases is centralized in the APS DIMS Team.

    • The APS DIMS Team is responsible for securing administrative files for all Appeals Field and Campus Operations.

  7. The source function sends the administrative file directly to the Appeals office designated on the Docket List. The APS DIMS Team is responsible for making the initial and follow-up contacts to locate the administrative files if the file is not received in Appeals within ten (10) calendar days of appearing on a Docket List.

  8. The APS DIMS Team contacts the source function responsible for sending the case to Appeals to obtain the file(s).

  9. If the case is not on AIMS, the APS DIMS Team takes the following steps to secure the case file:

    1. Request the file using command code ESTAB or FAX the request to the appropriate Campus. Enter the full name and mailing address of the Appeals office where the file is to be sent, along with the statement "Appeals - Expedite Request" .

    2. If the case is not received within seven (7) business days, follow up by telephone with the appropriate Campus.

    3. If the case was on AIMS previously, contact Examination to ensure AIMS is re-opened and updated to Appeals.

    4. Add a DIMS Tracking contact to record the actions taken.

  10. Within two (2) business days of receipt, the APS office that receives the file will:

    1. Acknowledge receipt.

    2. "Card" the docketed case on ACDS CASES using all available information contained in the administrative file and on TLCATS, in accordance with established procedures.

    3. Transmit the file to Counsel for answer.

    4. Close DIMS.

8.20.5.5.1.3.1  (10-20-2014)
DIMS Tracking

  1. DIMS Tracking is a feature within DIMS used to record the actions taken to locate administrative files for docketed Tax Court cases.

  2. DIMS Tracking allows users to electronically track and monitor receipt of the administrative file. Users enter contact information, such as the dates and names, action notes, responses received, date the file was received, and other information, i.e. defaulted, TC 922 (AUR case), AIMS status etc.

  3. When the Docket List file is posted, the following Docket List items are automatically uploaded and displayed in DIMS Tracking as "read only" information about each case:

    • DktNo

    • List #

    • Xmittal

    • Name

    • Address

    • TIN1

    • TIN2

    • SND Date

    • SND +90

    • Issuing Off

    • Appeals Off

    • Counsel Off

    • YrsSND

    • D/L Yrs Petitioned:

  4. The following DIMS Tracking fields are updated as applicable:

    Field Name Description
    CTIN1 & CTIN2 Enter corrected TINs if research shows the information provided on the Docket List is incorrect or incomplete
    Add'l Yrs Petitioned: Enter additional years petitioned if research shows the information provided on the Docket List is incorrect or incomplete
    Petition Date Enter the date the petition is received from Counsel, if received
    TC 922* (required) This transaction code is used to identify Automated Underreporter (AUR) returns. Options are:
    • Y = TC 922 on TXMOD

    • N = no TC 922 on the account

    • UNK = unknown or not yet determined

    SN defaulted* (required) Options are:
    • Y = a default assessment was made

      Note:

      If Y, then an entry to reflect the date assessed is also required

    • N = a default assessment was not made

    • UNK = unknown or not yet determined if a default assessment was made

    Date Assessed Enter the date assessed if a default assessment was made
    AIMS status If the case is on AIMS, enter current status and date from AMDISA
    Campus If the notice of deficiency was issued by a Campus, select the Campus location from the drop-down list
    CATS Admin Enter the TLCATS Admin file location of the Appeals office that will be handling the case
    Attorney Counsel employee’s name per TLCATS
    Case on ACDS* Enter a date in this field when the docketed case is properly controlled on ACDS

    Caution:

    Entering a date in this field closes the case on DIMS


    Non-Appeals issued notices - The APS unit that receives and cards the case should enter the date the case is created on ACDS in this field
    Appeals Issued Notices - The Centralized DIMS employee will:
    • send an email to notify the issuing office the case is docketed

    • add a DIMS contact to record the action taken


    Within two days of receipt of the email, the issuing office will:
    • pull the file

    • update ACDS to Part 3

    • send the case to Counsel for answer

    • close DIMS by entering the date the case was sent to Counsel for answer/trial preparation in this field

    Contacts Click on "Add" to add a contact to document the actions taken to locate the case. The contact fields are:
    • Date - The date the action occurred

    • Name - the name of the person contacted

    • Notes - description of the action taken

    • Userid - systemically generated to identify the user who added the contact. Click on the hyperlink to view the name of the user

    * Required Field to close DIMS

8.20.5.5.1.4  (10-20-2014)
DIMS Procedures

  1. The APS DIMS Team is currently assigned responsibility for:

    1. Creating skeletal records on ACDS for every docket number on a docket list

    2. Researching docket lists to identify Appeals Office Codes (AOCs)

    3. Preparing dummy files for answer and

    4. Promptly sending them to Counsel by fax or overnight mail

    Note:

    DIMS Team case monitoring is assigned by AOC to the DIMS Team Tax Examiners. The most current information regarding assignment of dummy file responsibilities in APS by AOC can be found on the APS page of the Appeals web site.

  2. The process of establishing skeletal records was implemented to:

    • provide an automated method for follow-up and monitoring of dummy files

    • reduce processing and forwarding time on docketed administrative files when received in the local office and

    • to increase database accuracy

  3. The DIMS Team controls skeletal records on ACDS by using the action code "DKLSTXXX" . The action code indicates that a docket list has been received and receipt of the administrative file from Compliance Examination is pending. The "XXX" is a placeholder for input of the correct AOC for the case.

  4. When a case first appears on a docket list, the DIMS Team creates the skeletal record using information from TLCATS (print CSC 1) to input key data fields on ACDS. The cases are controlled on ACDS using Fresno's AOC to enable the DIMS Team to generate follow up reports.

  5. The skeletal record should be created within one or two days from the docket list date.

  6. When a case is received by a field or campus Appeals APS office the PTM or designee should:

    1. Use the DIMS contact list on the APS home page to identify the DIMS Tax Examiner assigned to your AOC and request that the skeletal record be transferred

    2. The DIMS Tax Examiner will transfer the skeletal record to your AOC and will close DIMS.

    3. The field or campus Appeals APS office should analyze the information in the administrative file and update ACDS and IDRS appropriately, including changing the RECDATE to the actual date received in your office

  7. If a case remains on the "DKLSTXXX" list for 40 days or more, Fresno Centralized DIMS Team will create a dummy file for answer.

  8. The dummy file consists of copies of all available information obtained from a variety of sources. Most IRS Campus Examination sourced cases are controlled on the Correspondence Examination Automation System (CEAS). In Appeals, designated DIMS Team and Fresno Campus APS employees have permission to access CEAS for research only.

  9. A "dummy" administrative file contains all available information related to the case. The dummy file for answer purposes should contain, at a minimum:

    • CEAS information, if available, or if not, a clearly visible statement that no CEAS is available

    • RTVUE print from IDRS

    • Transcript of account, TXMOD, MFTRA, IMFOL, etc.

    • Appeals/Counsel Routing Cover Sheet (posted on the Appeals web site)

    Note:

    If the taxpayer has erroneously filed a petition when no statutory notice of deficiency was issued by Compliance Examination, see IRM 8.20.6.19.1.

8.20.5.5.2  (10-20-2014)
Docketed Cases Received in Appeals

  1. Upon receipt of a new docketed regular OR "S" case administrative file, the APS PTM will promptly assign the case for carding.

  2. The assigned APS employee will verify the contents of the administrative file to determine if all documents, returns, etc., listed on transmittal Form 3210 are present in the file.

    Note:

    When the source function is a W&I or SBSE AUR Unit and the file is missing a Control-D generated Notice of Deficiency, refer to the AUR Control-D Contacts listed on the APS Home Page to obtain a copy of the AUR issued Notice of Deficiency. http://appeals.web.irs.gov/APS/AUR-C-D_contacts.htm

  3. The assigned APS employee will sign the acknowledgment copy of the Form 3210 and return it to the originator by mail or fax. Keep a copy of the Form 3210 in the case file.

  4. The assigned APS employee will take the following steps promptly within two business days after receipt of the file in APS (and no later than 40 days after the petition was served, to prevent the preparation and processing of unnecessary "dummy" files):

    • Upon receipt of a docketed administrative file, promptly notify the DIMS Tax Examiner assigned to your Appeals Office Code (AOC) and request the skeletal ACDS record be transferred to your AOC.

    • The receiving office will accept the case from the ACDS INBOX and the DIMS Unit will close DIMS.

      Note:

      The APS Tax Examiner will contact the DIMS Unit upon receipt of the administrative file to reduce or eliminate the creation of the dummy file.

    • Print TLCATS Case Screen 1 - Identify and highlight the Answer Due Date, Caption, and Years and Quarters Petitioned

    • Use TLCATS and the documents in the admin file to verify the information on the case summary card and make corrections as necessary. If any critical data elements were corrected, validation needs to be completed.

    • Verify and act upon non-petitioned years (NPY) and non-petitioning spouses (NPS). Take immediate and appropriate steps to assess, when necessary. Upon receipt of the case file from the Campus, examine TLCATS and the notice of deficiency to determine whether all of the parties named in, and all the years and quarters (for quarterly filed returns) covered by, the notice of deficiency are included in the petition. If any of the parties or years or quarters shown in the statutory notice are not listed on TLCATS, follow procedures in IRM 8.20.6, Interim Actions - Remittances, Partials, Transfers and Returns.

      Note:

      IF... THEN...
      Any of the parties or years or quarters shown in the notice of deficiency are not listed on TLCATS
      • Contact Counsel to see if there is a non-petitioning spouse or year or quarter

      • If it is necessary to protect the statute, make the assessment before verification from Counsel is received.

    • Identify up front, based upon existing case routing guidelines, which Appeals office will consider the docketed case when it is returned by Counsel after answer and which APS office will process the case upon closing. Complete the Appeals/Counsel Routing Cover Sheet. (A copy of the Cover Sheet is posted on the Appeals web site.) This document instructs Counsel to send the administrative file to the specified Appeals office address, to the attention of the Lead Appeals Team Manager (ATM), for assignment and consideration. It also clearly identifies the Appeals office and APS address the administrative file must be returned to for closing.

      Note:

      Existing Case Routing Guidelines: Counsel field offices initially assign docketed cases to their attorneys/paralegals based upon the place of trial designated by the taxpayer. In larger cities, several Counsel field offices may work cases with the same designated place of trial. In this situation, the Counsel case assignments are further divided by taxpayer zip code. Project cases may be kept together in one field office for convenience. Compliance routes docketed administrative files to the Appeals field office indicated on the Docket List. This is generally the Appeals field office that services the Counsel field office assigned the case. Therefore, assignment of docketed cases in Appeals field offices mirrors the assignment procedures used by Counsel. Transfers for face-to-face conferences, etc., should continue using normal procedures as explained in IRM 8.1.1.1 (3), IRM 8.4.2, IRM 8.20.6, and the Appeals Case Routing page at: http://appeals.web.irs.gov/APS/caserouting.htm

      Caution:

      If the docketed administrative file has an 872-A alert on the cover do not place an Appeals/Counsel Routing Cover Sheet over it until the APS employee has verified that all periods in the Notice of Deficiency are addressed in the petition.

    • Update ACDS for EACH docketed workunit where the administrative file is sent to Counsel for answer with ACTION = "ANSWER" and a "TODATE" " equal to the date the file was sent. This will ensure the "ANSWER" follow-up report can be generated and worked.

    • Send the administrative file to the appropriate Counsel office for answer, as identified in TLCATS Case Screen 1.

    • Close the DIMS record by entering a date in the "Case on ACDS" field equal to the date the case was received by Appeals.

      Note:

      All APS employees must ensure that they card cases timely and consistently close DIMS records. This practice will reduce or eliminate the APS DIMS Team creating dummy files for cases in which the original administrative files are already in Appeals.

8.20.5.5.2.1  (10-20-2014)
Docketed Case Carding

  1. Using TLCATS and the documents in the case file, update ACDS as needed. If any critical data elements were corrected, the validation needs to be completed.

  2. Complete items on the case inventory and return information screen as applicable and in accordance with established procedures. Follow normal ACDS procedures found in IRM 8.20.3 for ACDS fields and acceptable data.

  3. The same instructions used to establish cases, as outlined in IRM 8.20.3, apply when establishing docketed case on CASES, and follow the additional instructions described below:

  4. PART is computer generated and reflects whether Appeals or Counsel has jurisdiction of the case at the time. For assigned cases, the PART will display the number "2" if the case is docketed and under Appeals jurisdiction. It will display the number "3" if the case is docketed and under Counsel jurisdiction.

  5. Leave the AO = Appeals Officer (userid/POD/Group) field blank on a docketed case as an answer to a petition is required by Counsel and an assignment is not being made.

    Note:

    ACDS refers to Appeals Officer which is also the Appeals Technical Employee (ATE).

  6. REQAPPL (Request Appeal - Date Taxpayer Requested Appeal) - Use the date the petition was filed.

  7. DKTNO (Docket Number) is the number used by Tax Court for control purposes when a petition is filed or by District or Claims Court when a complaint is filed. This item is only completed in docketed cases. Every docket number will be a separate work unit. The information for this can be obtained from various documents in the administrative file, i.e., petition, docket list, etc. The docket number for Tax Court cases is written in NNNNN-YY format, with N being the number and Y being the year docketed. (See IRM 8.4.1.2.1 for a description of all docket number identification terms or letters that further identify the type of docketed case). For District or Claims Court cases use the characters and numbers shown on the filed complaint.

  8. DC OFFICE (Counsel Office) is only completed in docketed cases. Enter the three digit code identifying the Counsel Office assigned to the case. See IRM 8.20.3-3 for a list of Counsel Office codes. The information for this item can be obtained from documents in the administrative file, i.e., docket list, petition, etc., or from TLCATS.

  9. ATTORNEY (Counsel Attorney) is only completed in docketed cases. Enter the name of the counsel attorney assigned to the case, last name first. This information can be obtained from TLCATS. If the case is unassigned on TLCATS, enter "Unassigned" .

  10. SNTYPE is completed on all docketed cases if a notice of deficiency or determination letter or other notice was issued. Also enter the SNTYPE if the case is received in 90 or 150 day status. IRM 8.20.3.3.28, SNTYPE (Source and Type of Notice of Deficiency/Determination Letter Issued), contains descriptions of valid SNTYPEs.

  11. SNDATE is the date the notice of deficiency or determination letter or other notice was issued.

  12. Enter DOCKT in the Statute Code field.

  13. Update AIMS using IDRS command code AMSTUA to:

    1. STATUS 82

      Note:

      APS should only update a file to AIMS status 82 when the original administrative file is received or when entered decision documents are received for processing. Update to status 82 is the responsibility of the APS employee who processes receipt of the original administrative file or the entered decision documents. Premature update of a dummy file to status 82 and removal of "Dummy File" from the "NOTES" field causes the DIMS Team to stop searching for the original administrative file before it has actually been received in Appeals.

      Note:

      Each Appeals Office is assigned a 2-digit code called the AIMS Office Code (AOC). This code is used to designate a location of the primary office. When establishing a docketed case, a "2" precedes the 2-digit code. See Document 6209, Section 13.

  14. Transmit the case to Counsel for answer of the petition.

8.20.5.5.2.2  (10-20-2014)
Premature Assessments and Command Code AMSTUR

  1. Although source functions are required to send docketed cases to Appeals timely, some docketed administrative files are not received in Appeals timely. Cases are sometimes prematurely defaulted or defaulted in error for a variety of reasons. If a premature assessment results, the premature assessment will need to be abated. APS has the responsibility to abate premature assessments.

    Note:

    When the case is not assigned to an ATE, process the abatement only after the review and approval of an APS PTM or Counsel Attorney. Reassess the abated amount when the case is dismissed or make a new assessment to reflect an entered decision. When the case is assigned to an ATE, card the case with a note identifying the premature assessment. The APS Tax Examiner will ask the ATE/ATM to review the file prior to processing the abatement.

  2. After verification and/or approval of the ATE/ATM/Counsel Attorney, the APS Tax Examiner will secure a transcript or TXMOD, and prepare and process Form 3870, Request for Adjustment, or Form 8485, using Priority Code 2, Hold Code 2 and annotating in Item 11, "priority abatement needed."

    Note:

    IRM 4.8.9.25.7, Status 90 Cases, outlines the steps used by Exam Technical Services to input CC STAUP and prepare and send a Field Exam prematurely defaulted docketed file to Appeals (including Command Code AMSTUR). Premature assessment cases require APS actions as outlined above.

8.20.5.5.2.3  (10-20-2014)
Original Return Required on Docketed Cases

  1. Although the source function is supposed to provide the original return as part of the administrative file there are instances when a paper original return is neither available, nor able to be secured. If the original return is not readily available, the source function must transmit the docketed case to Appeals without the original return, but include an unfilled requisition, a transcript of account, and a copy of the return in the case file. APS will accept docketed administrative files without the original return(s) to immediately provide all available information to Counsel for preparing an answer to the petition.

    Note:

    APS must not reject docketed administrative files to the originator when the original return is missing.

  2. If the docketed case file does not contain the original return, APS must:

    • Verify whether a return request was made by the source function.

    • If no request for the original return was made by the source function, coordinate with the source function to determine who will make the request. Although it is the responsibility of the source function to request the original return(s), APS may agree to make the request for the original return.

    • Follow up on unfilled requests.

    • In all cases, if no original return is included, use Tax Period Modifier "N" for each tax period to indicate that the original return is missing.

    • Upon receipt of the original return, remove the Tax Period Modifier "N" . A "blank" in the Tax Period Modifier field indicates the original return is in the file.

8.20.5.5.3  (10-20-2014)
90-Day Case Carding

  1. If the statutory notice of deficiency was issued by Examination, review the administrative file, acknowledge receipt, establish the case on ACDS, and transmit the case to the ATM for assignment using the same procedures used for pre-90-day income tax cases. See IRM 8.2.1.3.3 through IRM 8.2.1.3.5 .

    1. Review the TLCATS Case Screen 1 - Caption and Years Petitioned, to verify that all taxpayers included on the statutory notice of deficiency also petitioned the Tax Court. See IRM 8.20.5.4.5 for cases involving a non-petitioning spouse. Take immediate action to assess the tax (and penalties, when applicable) shown on the statutory notice of deficiency against the non-petitioning spouse.

    2. Review the TLCATS Case Screen 1 - Caption and Years Petitioned, to verify that all years included on the statutory notice of deficiency are also included on the Tax Court petition. Take immediate action to assess the tax (and penalties, when applicable) shown on the statutory notice of deficiency on any year(s) not included on the Tax Court petition.

  2. Complete the SNDATE field in ACDS on all cases in which a statutory notice of deficiency or a determination letter was issued, including 90-day cases received from Compliance or the Campus. Use the appropriate entry as follows:

    • 030A - Appeals issued CDP determination letter

    • 090A - Appeals issued notice of deficiency/notice of determination

    • 150A - Appeals issued notice of deficiency/notice of determination to taxpayer residing outside the United States

    • 180A - Appeals issued notice of final determination of partial or full disallowance of an abatement of interest claim

    • 090D - Compliance issued notice of deficiency.

    • 150D - Compliance issued notice of deficiency to taxpayer residing outside the United States

    • 090S - Campus issued notice of deficiency

    • 150S - Campus issued notice of deficiency to taxpayer residing outside the United States

    • FPAA -TEFRA (Appeals Issued FPAA)

    • FPAD - TEFRA (Compliance Issued FPAA)

    • FPAS - TEFRA (Campus Issued FPAA)

    • FSAA - TEFRA (Appeals Issued FSAA)

    • FSAD - TEFRA (Compliance Issued FSAA)

    • FSAS - TEFRA (Campus Issued FSAA)

    Note:

    IRM 8.2.2.14 . This subsection contains instructions to follow if the notice of deficiency is rescinded under Rev. Proc. 98-54.

  3. Statute information is found in IRM 8.21, Appeals Statute Responsibility.

  4. In 90-day cases, APS Tax Examiners should not assess advance payments made after the issuance of the notice of deficiency unless the assessment is specifically requested.

  5. If Counsel or the Department of Justice requests the administrative file during the 90-day period, the APS Tax Examiner will send the file to Counsel, include a photocopy of the return in the administrative file, and retain the original return.

8.20.5.5.4  (10-20-2014)
Docketed Case Not Received Timely in Appeals

  1. A 90-Day case is considered defaulted if it does not appear on the Docket List for a certain number of days (ranging from an additional 15 to 30 days) after the expiration of the period of time they have to file a petition with the Tax Court specified in the notice or letter. See IRM 8.20.7.6, Processing 90-Day Cases and Defaulted Notices.

  2. Although source functions are required to send docketed cases to Appeals in a timely manner, some docketed administrative files are not received in Appeals within that period of time. Cases are sometimes prematurely defaulted or defaulted in error for a variety of reasons.

  3. If a case appears on the Docket List or DIMS but is not received in Appeals within forty days after the date the petition is served on the IRS, the APS DIMS Team will:

    1. Create a dummy file for answer

    2. Enter on ACDS in the DKTAD field the date the dummy file was created and sent to Counsel

    3. Send the dummy file to Counsel by fax or overnight mail

    See IRM 8.20.5.5.4.3, Dummy File Carding for additional information.

  4. These steps provide Field Counsel with all available information for them to use in preparing an answer to the petition.

8.20.5.5.4.1  (10-20-2014)
Docketed Case Settled by Appeals, Counsel Prepares the STIP - PREPSTIP (8.20.6.12)

  1. ACTION PREPSTIP is used when Appeals settles the case, but Counsel will prepare the decision document. APS enters action code PREPSTIP and the TODATE (date case placed in PREPSTIP) on the update case/returns screen.

  2. The admin file is sent to Counsel and copies are NOT maintained by APS.

    PREPSTIP Process
    If Then
    The ATM/ATE sends the admin file to Counsel. The ATM prepares an ACDS ACTION/TODATE Update Request and submits it to their servicing APS email address. APS will update ACDS:
    1. ACTION = PREPSTIP

    2. TODATE = Date ATM/ATE sent the Admin File to Counsel

    The ATM/ATE sends the Admin file to APS to send to Counsel. APS will:
    • Acknowledge the Form 3210

    • Forward the admin file to Counsel using Form 3210, ensuring that calendar cases are transmitted timely


    Update ACDS:
    1. ACTION = PREPSTIP

    2. TODATE = Date Admin File sent to Counsel

    Note:

    ACTION PREPSTIP is replaced with the next applicable action i.e., DECENT, ORDENT, generally updated by the APS Reports Team.

8.20.5.5.4.2  (10-20-2014)
Reopening Procedures for CDP Cases Defaulted Prematurely

  1. Occasionally the APS DIMS Team will identify a CDP case on a DIMS listing that was erroneously closed as a default but needs to be reopened. This can occur when the following happens:

    • the taxpayer filed their petition late

    • the taxpayer checked the incorrect box when filing their petition and the case was not flagged as a CDP case on TLCATS

    • the APS DIMS Team will notify the PTM (of the back end APS unit that closed the CDP case) that the case has been docketed and the closing should be recalled

  2. The back end APS unit will take the following steps:

    1. Use the "Special Activities" menu on ACDS, recall the case to the ATE. The recall removes the previous closing information.

    2. Input Closing Code 43

    3. Enter the docket number

    4. Enter the name of the Counsel Attorney

    5. In the NOTES field, explain the reason for the recall

    6. The back end APS unit will also input TC 520 on IDRS and take the steps necessary to locate the administrative file and then forward the administrative file to the assigned Counsel Attorney.

    7. The back end APS unit is responsible for the recalled CDP case for all actions up to and after the Tax Court decision becomes final. See 8.22.3 for additional information.

8.20.5.5.4.3  (10-20-2014)
Dummy File Creation

  1. The ACDS record is created based on all available information, such as the petition, notice of deficiency (if available), TLCATS, IDRS, AIMS and CFINQ information. Use all obtainable information to card the case on ACDS.

    Note:

    ACDS (NO-National) must be researched for all docketed cases to avoid creating a duplicate record. If, however, a duplicate record is found, the WUNO created first should be kept and any later WUNO deleted.

  2. The APS DIMS Tax Examiner will transfer ACDS to the appropriate Appeals field or campus office by selecting it from the drop down list on the Main CASES menu.

  3. The APS DIMS Tax Examiner will alert the appropriate field or campus APS office by secured email that a dummy file was forwarded to Counsel for answer and that the ACDS record was transferred to that field or campus AOC.

  4. The field or campus APS office will also be instructed to accept the record from the "INBOX" and update the "ACTION" Code to "Answer" as that code is systemically removed with the transfer action.

  5. The APS DIMS Team Tax Examiners will continue efforts to locate the administrative file.

  6. The DIMS Tax Examiner must be sure to promptly and accurately verify and act upon non-petitioning spouse, non-petitioned years and potential dismissals on all dummy file cases. The APS DIMS Tax Examiner must compare the case caption on TLCATS to the filing status on IDRS and create additional MFT 31 Case Summary Cards and NPS assessment requests, as necessary. However, the APS DIMS Tax Examiner will not abate premature assessments on dummy file cases. The APS office with ACDS control of the case will abate premature assessments when directed to do so by Counsel.

  7. On ACDS, the APS DIMS Tax Examiner will input the date the dummy file was created in the DKTAD-Dummy field to indicate this is a dummy file and the actual administrative file has not been received.

    Note:

    When the original administrative file is received the APS Tax Examiner will enter the date the file is received in the DKTAD-Original File field.

  8. In addition, on ACDS, enter the following information:

    • RECDATE - date dummy file created

    • REQAPPL - date petition filed

    • ACTION - ANSWER

    • TODATE - equal to the date the case was created – also equal to the date the dummy file is forwarded to Counsel

    • FROMDATE - Blank

    • LACTION - DKTLST XXX (Dkt List #)

    • LTODATE - equal to the date the case was created – also equal to the date the dummy file is forwarded to Counsel

      Note:

      Use of LACTION DKLST XXX with a valid TODATE and blank FROMDATE indicates that the actual administrative file has not been received.

  9. Do not close DIMS until the original admin file is received. (See IRM 8.20.5.5.4.4, Administrative File Received After Dummy File Created/Carded).

8.20.5.5.4.4  (10-20-2014)
Administrative File Received After Dummy File Created

  1. When the original administrative file is received after a dummy file for answer was created and carded on ACDS, APS must perform research to determine the location of the dummy file so that the administrative file can be associated.

    • The APS Tax Examiner will research ACDS to determine if Appeals has possession of the dummy file. If the dummy file is currently assigned to an ATE, the APS Tax Examiner will prepare a Form 3210 and send the original admin file to the ATE to associate it with the dummy file. (Notes field = "admin file received, associate with dummy file" )

    • The APS Tax Examiner will research TLCATS to determine if Counsel has possession of the dummy file. If the dummy file is currently in Counsel, the APS Tax Examiner will prepare a Form 3210 and send the original admin file to Counsel to associate it with the dummy file. If the dummy file location is unclear on TLCATS, the APS Tax Examiner will call Counsel to verify the dummy file location. (Notes field = admin file to Counsel to associate with dummy file)

  2. If the original administrative file is received before ASNDATE is input, the APS Tax Examiner will change the RECDATE to the date the administrative file is received in Appeals.

  3. If the original administrative file is received after the ASNDATE is input, the APS Tax Examiner will change the RECDATE to the same date as the ASNDATE.

    Note:

    This practice creates a more accurate P1 measure.

  4. Upon receipt of the original administrative file, the APS Tax Examiner will enter the date it was received in the DKTAD-Original File field. They will enter a comment in the NOTES field "Original Administrative File sent for association with the Dummy File." The APS Tax Examiner will update ACDS as follows:

    • In "NOTES" , record the actual received date as follows: "ADMIN FILE RECD MM/DD/YYYY ASSOCIATED W/DUMMY FILE" .

    • Input a FROMDATE in LACTION = to the date the original administrative file is received.

    These entries will indicate that the case was originally assigned as a dummy file but the actual administrative file was later received and associated with the dummy file.

  5. Input REQAPPL using date petition filed in Tax Court, as shown on TLCATS Screen 1. APS no longer receives copies of the petitions before sending the case to Counsel.

  6. Upon receipt of the original administrative file, the APS Tax Examiner will close DIMS tracking by entering a date in the DIMS Closed field that equals the date the original administrative file was received.

8.20.5.5.5  (10-20-2014)
Non-Petitioning Spouse Cases

  1. When a notice of deficiency is issued to both a husband and wife who filed a joint return, and one spouse petitions the U.S. Tax Court while the other spouse either agrees to the proposed deficiency in Appeals or does not appeal, the case is considered a non-petitioning spouse case .

  2. The APS Tax Examiner will verify the address of both taxpayers on all non-petitioning spouse cases. Use IDRS command code SPARQ to determine if the last known address of both taxpayers is the same as the address on the notice of deficiency.

  3. When it is clear the notice of deficiency was sent to the last known address, ensure a default assessment is made on the non-petitioning spouse. If a default assessment has not been made, APS makes the default assessment.

  4. If separate residences were established and it is not clear from the administrative file that both taxpayers received the notice of deficiency, APS will:

    1. Immediately card the case on ACDS following the procedures shown below to control the statute date for the taxpayer who may not have received the notice of deficiency.

    2. In notes, indicate "spouse at different address" .

    3. Immediately deliver the case to the PTM to determine the appropriate action.

    4. The PTM may need to immediately transmit the case to Counsel to determine the appropriate action to take on the case.

      Note:

      A notice of deficiency sent to an address other than the last known address is NOT valid. Therefore, an assessment may not be made as a default assessment. (In some cases, a protective assessment may be requested by Counsel, until it can be determined if the notice of deficiency was mailed to a proper address.) The statute for the taxpayer sent an invalid notice of deficiency is the normal or extended statute (before the notice of deficiency was issued.)

    5. If the assessment statute is still open, a new notice of deficiency must be issued. Refer the case to the lead Appeals Team Manager (ATM). The lead ATM determines whether to return the case to Compliance or issue a notice of deficiency.

    6. If the assessment statute is not open, follow established procedures from IRM 8.21.7 for preparing Form 3999, Barred Statute Report.

8.20.5.5.5.1  (10-20-2014)
Non-Petitioning Spouse Carding

  1. A non-petitioning spouse case requires special ACDS procedures to create a work unit that includes a key case (the joint return) and two related cases, one for each spouse.

    • Joint return (key case)

    • Petitioning spouse (related case record, same workunit number as the key case)

    • Non-petitioning spouse (related case record, same workunit number as the key case)

    Note:

    The order of carding is no longer systemically relevant, although in practice, most prefer to card the key case first.

8.20.5.5.5.1.1  (10-20-2014)
Non-Petitioning Spouse Joint Return Carding

  1. Since the DIMS Team creates a skeletal card from the docket list, the petitioner's card will already be on ACDS. This case summary card should be updated to become the joint "key" case. For ACDS fields and acceptable data follow the additional instructions described below. Send the administrative file to the appropriate Counsel office for answer, as identified in TLCATS Case Screen 1. For the CASES level information screen:

    1. TPNAME - change to joint name line information

    2. FEATRCD - Enter NS to identify a non-petitioning spouse case.

    3. TP TYPE (only valid with MFT 30. Enter: Select "PRI" in drop down box if the petitioner is the primary TIN on the joint account or "SEC" in the drop down box if the petitioner is the secondary TIN on the joint account.

      Pri - if the petitioner is the primary TIN

      Sec - if the petitioner is the secondary TIN

    4. REQAPPL - Enter the date the petition was filed by the petitioning spouse.

    5. DKTNO - Enter the docket number as it appears on the petition or Docket List.

    6. KEYTP - Leave blank.

    7. KEYTIN - Leave blank.

  2. On the RETURNS level information screen, follow normal ACDS carding procedures and:

    1. Statute Date - Leave blank

    2. Statute Code - Enter DOCKT

    3. PropdTax and PropdPen - Enter the tax deficiency and penalty(s) amounts shown on the notice of deficiency

    4. Duplication - Leave blank

8.20.5.5.5.1.2  (10-20-2014)
Non-Petitioning/Petitioning Spouse Case Carding the Petitioning Spouse

  1. Establish a separate record for the petitioning spouse using the same work unit number as the joint return. Follow normal ACDS carding procedures and,

    1. TPName - Enter the name of the petitioning spouse

    2. Address - Enter the address of the petitioning spouse

    3. TIN - Enter the petitioning spouse TIN

    4. MFT - Enter MFT 31

    5. TYPE - Enter I

    6. FEATRCD - Enter NS to identify a non-petitioning spouse case

    7. REQAPPL - Enter the date the petition was filed by the petitioning spouse

    8. DKTNO - enter docket number as it appears on the petition

    9. KEYTP - Enter the name of the joint return

    10. KEYTIN - Enter the name of the primary TIN on the joint return

    11. SNTYPE - enter type of SN issued

    12. SNDATE - enter date notice of deficiency was issued

    13. ACTION - ANSWER

    14. NOTES - You may wish to enter "Petitioning Spouse "

  2. On the RETURNS level information screen, follow the normal procedures and:

    1. AIMS Indicator - Enter E since the individual taxpayer is not on AIMS

    2. Statute Date - Leave blank

    3. Statute Code - Enter DOCKT

    4. PropdTax and PropdPen - Leave these fields blank

    5. Duplication - Leave this field blank

8.20.5.5.5.1.3  (10-20-2014)
Non-Petitioning/Petitioning Spouse Case Carding the Non-Petitioning Spouse

  1. Establish a separate case for the non–petitioning spouse using the same work unit number as the joint return. Follow normal ACDS carding procedures and for the CASES level information screen:

    1. TPName - Enter the name of the non-petitioning spouse

    2. Address - Enter the address of the non-petitioning spouse

    3. TIN - Enter the TIN of the non-petitioning spouse

    4. MFT - Enter MFT 31

    5. TYPE - Enter REF

    6. FEATRCD - Enter NS to identify a non-petitioning spouse case

    7. REQAPPLS - Leave blank

    8. DKTNO - Leave blank

    9. KEYTP - Enter the name of the joint return

    10. KEYTIN - Enter the primary TIN of the joint return

    11. SNTYPE - Enter the stat notice type

    12. SNDATE - Enter the stat notice date

    13. ACTION - DCOTHER

    14. NOTES - Enter "Non-Petitioning Spouse "

  2. On the RETURNS level information screen enter:

    1. AIMS Indicator - Enter E since the individual return is not controlled on AIMS

    2. Statute Date - Enter the normal or extended assessment statute date

    3. Statute Code - Leave blank

    4. PropdTax and PropdPen - Leave these fields blank

    5. Duplication - Leave blank

  3. See IRM 8.20.6.9.12 for assessment procedures for the Non-Petitioning Spouse.

8.20.5.5.6  (10-20-2014)
Joint Return - Separate Petitions

  1. If the notice of deficiency is issued to both a husband and wife who filed a joint return and each files a separate petition with the U.S. Tax Court, each docket number is a separate work unit number. Follow the procedures in the following subsections to card the returns on ACDS.

8.20.5.5.6.1  (10-20-2014)
Joint Return Separate Petitions - Carding the Primary Taxpayer Identification Number (TIN)

  1. When one notice of deficiency is issued to both a husband and wife and each files a separate petition, each docket number will be established as separate work unit numbers.

  2. Establish a workunit for the primary TIN of a joint return on the case inventory screen. This is the key case record. The APS Tax Examiner will follow normal ACDS carding procedures and enter the following for the CASES level information screen:.

    1. TPName - Enter the name of the taxpayer with the primary TIN on the joint return

    2. Address - Enter the address of the taxpayer with the primary TIN on the joint return

    3. TIN - Enter the primary TIN of the joint return

    4. MFT - Enter MFT 31

    5. DKTNO - Enter the docket number as it appears on the petition or docket list

    6. KEYTP - Enter the name of the joint return

    7. KEYTIN - Enter the primary TIN of the joint return

    8. NOTES - Enter "Taxpayers Filed Separate Petitions - Related DKTNO (enter the docket number of the other spouse)"

  3. On the RETURNS level information screen enter:

    1. AIMS Indicator - Enter E since the individual taxpayer is not controlled on AIMS

    2. Statute Date - Leave blank

    3. Statute Code - Enter DOCKT

    4. PropdTax and PropdPen - Leave blank

    5. Duplication - Leave blank

  4. The APS Tax Examiner will send the administrative file to the appropriate Counsel office for answer, as identified in TLCATS Case Screen 1.

8.20.5.5.6.2  (10-20-2014)
Joint Return Separate Petitions - Carding the Joint Return

  1. Establish a separate record for the joint return using the same work unit number as the primary TIN key case. This is a related case record. On the CASES level inventory screen enter:

    1. REQAPPLS - Enter the date the petition was filed for the primary taxpayer of the joint return

    2. DKTNO - Enter the docket number as it appears on the petition or docket list

    3. KEYTP - Leave blank

    4. KEYTIN - Enter the secondary taxpayer's TIN for cross referencing

    5. NOTES - Enter "Taxpayers Filed Separate Petitions - Related DKTNO (enter the docket number of the other spouse)"

  2. On the RETURNS level information screen enter:

    1. Statute Date - Leave blank

    2. Statute Code - Enter DOCKT

    3. Proposed Def/O/A (Tax and/or (Pen)) - Enter the tax deficiency and penalty(s) for each year as they appear on the statutory notice of deficiency

    4. Duplication - Leave blank

8.20.5.5.6.3  (10-20-2014)
Joint Return Separate Petitions - Carding the Secondary TIN

  1. Establish a separate record with a new workunit number for the secondary TIN of a joint return. On the CASES level inventory screen follow normal ACDS procedures and enter:

    1. TPName- Enter the name of the taxpayer with the secondary TIN on the joint return.

    2. Address - Enter the address of the taxpayer with the secondary TIN on the joint return

    3. TIN - Enter the secondary TIN of the joint return

    4. MFT - Enter MFT 31

    5. REQAPPLS - Enter the date of the petition of the secondary taxpayer

    6. DKTNO - Enter the docket number as it appears on the petition or docket list

    7. KEYTIN - Enter the primary TIN of the joint return for cross referencing

    8. NOTES - Enter "Taxpayers Filed Separate Petitions - Related DKTNO (enter the docket number of the other spouse)"

  2. On the RETURNS level information screen, follow normal ACDS procedures and enter:

    1. AIMS Indicator - Enter E since the individual taxpayer is not controlled on AIMS

    2. Statute Date - Leave blank

    3. Statute Code - Enter DOCKT

    4. PropdTax and PropdPen - Leave blank

    5. Duplication - Leave blank

8.20.5.6  (10-20-2014)
Abatement of Interest (ABINT) Case Carding

  1. Abatement of interest claims are carded as a separate WUNO - even if received with another type of case, i.e. income tax.

  2. Follow the general carding procedures and enter:

    • Type code is ABINT

    • RETURNS level information screen:

      ACDS Return Field Entry Information
      AIMS indicator E since these cases are not controlled on AIMS
      Tax Period Enter tax period for which the claim is filed
      DDAMTCLM Amount of the claim shown on Form 843, Claim for Refund and Request for Abatement
      Duplication Leave blank
      Statute Date/Code ABINT if the 180-Day letter was not issued, or if the 180-Day letter was issued enter that date.
  3. Generally, these cases come to Appeals in "proposed disallowance status" so the assessment statute is not an issue. However, the "interest abatement case" could arrive in Appeals after a statutory disallowance letter has been mailed to disallow the claim for abatement. The following situations might occur, which impact the "statute expiration date" entered on ACDS for the case:

    1. If the formal disallowance letter was issued, the 180-day period (for petitioning the Tax Court) is running and Appeals may not have time to work the case.

    2. Reconsideration of disallowed interest claims in respect to IRC 6404(e)(1) - received with less than 120 days remaining on the 180-day period - Acceptance of this type case is subject to the approval of the Appeals Area Director. If Appeals accepts the case for reconsideration (during the 180-day period), the ATE informs the taxpayer that the period for filing suit is not extended and that no additional final determination letter will be issued.

  4. The collection statute of limitations (CSED) is not suspended as a result of the taxpayer's request for interest abatement under IRC 6404(e)(1). Likewise, the CSED is not suspended (solely) as a result of the taxpayer's petition under IRC 6404(h). In the case of a timely petition, IRC 6404(h) allows the Tax Court to review the denial of the taxpayer's request for an abatement of interest. However, unlike in Collection Due Process (CDP) proceedings the Internal Revenue Code does not provide for a CSED suspension as a result of such a petition. In the case of a short CSED, the ATE should consider the need to notify Compliance of the short CSED. If the interest abatement case is docketed, the ATE should consult with Area Counsel regarding action necessary to protect the CSED.

8.20.5.7  (10-20-2014)
Administrative and Litigation Cost Case Carding

  1. IRC 7430 provides for the recovery of reasonable administrative costs and litigation costs. The procedures for recovering administrative costs require that a written request be filed with the IRS personnel that considered the underlying substantive claim. When these cases are received in Appeals, it is important to remember the following:

    1. An award of litigation costs, attorney fees or court costs may be appropriate for docketed cases tried by the Tax Court or settled whether in Appeals or by Counsel. These cases require approval by Counsel and will be forwarded to them for action. These cases will not be carded on ACDS.

    2. An award of administrative costs (including attorney fees) may also be appropriate for non-docketed cases. Appeals has sole jurisdiction in deciding these cases and they will be carded on ACDS. (See Note below.)

    3. Any decision on administrative costs may be appealed to the Tax Court by the taxpayer, or his or her authorized representative.

    Note:

    If a petition is filed, they become litigation costs and jurisdiction is then transferred to Counsel.

  2. On the CASES level inventory screen, follow normal carding procedures and enter:

    1. MFT - Enter the MFT of the initial case

    2. TYPE - Enter 7430

  3. On the RETURNS level information screen, enter:

    1. AIMS Indicator - Enter E

    2. TAX PERIOD - Enter the tax period involved in the original case. If there is more than one period, enter only the earliest period

    3. STATUTE CODE - Enter CLAIM

    4. SND - Enter N

    5. APPEALS AMTCLM - Enter the total amount claimed

8.20.5.8  (10-20-2014)
Allocated Tip Tax Cases

  1. Employers are required to withhold and allocate 8% of gross income or tip tax. Revenue Procedure 86-21 provides that an employer may request administrative relief from this 8% requirement.

  2. Allocated Tip Tax cases have no returns, statutes or proposed deficiencies.

  3. The files should include:

    1. The request for Appeals consideration

    2. Compliance's denial

    3. A statement from the responsible person who is authorized to make and sign a return, statement or other document: "Under penalties of perjury, I/We declare that I/We have examined this application including accompanying documents and to the best of my/our knowledge and belief, the facts present in support of this application are true, correct and complete"

    4. Employer's request for administrative relief and substantiation

  4. The employers' request should also include:

    • Type of restaurant, i.e., lounge, sandwich shop, coffee shop, etc.

    • Days and hours of operation

    • A general description of the operation of the establishment, including the type of services provided by the staff, and the type of self service, if any

    • To whom the customer pays the check, waiter or waitress, cashier, etc., and whether the check is paid before or after the meal

    • Whether alcoholic beverages are available

    • Total gross sales for the past year

    • Total amount of charge sales for the past year

    • Total amount of charge sales with charge tips for the past year

    • Total amount of charge tips for the past year

    • Total reported tips for the past year

    • Total carry-out sales for the past year

    • Percentage of sales representing breakfast, lunch and dinner business for the past year

    • Average dollar amount of the guest check for the past year

    • Percentage of sales with a service charge for the past year

    • Type of clientele

    • Copy of a representative menu for each meal

8.20.5.8.1  (10-20-2014)
Allocated Tip Tax Case Carding

  1. On the CASES level inventory screen, follow normal carding procedures and enter:

    • TIN - The TIN will be followed by a modifier (A through J) to distinguish the tip tax case from other related returns

    • TYPE - Enter EMPL

  2. No data will be entered on the RETURNS level information screen

8.20.5.9  (10-20-2014)
Audit Reconsideration Case Carding

  1. An audit reconsideration case is the reevaluation of the results of a prior audit when a taxpayer disagrees with the original determination by providing information that was not previously considered during the original examination. Or, it is the process the IRS uses when the taxpayer contests an Automated Substitute for Return (ASFR) or SFR determination by filing an original delinquent return, and the assessment remains unpaid or, as a result of the assessment, the tax credit is reversed.

  2. There are two types of audit reconsideration cases:

    1. Type 1 is the case that has already been closed by Appeals.

    2. Type 2 is the case that has not been to Appeals. It was a reconsideration as a Campus claim, an underreporter case, examination, a correspondence examination, a non-filer, an ASFR, or SFR case.

  3. Follow normal carding procedures and enter FEATRCD RE and Statute Date which is the assessment statute date, if it has not expired. CAUTION: If a claim is for additional tax and not a refund, the statute is not suspended and normal statute procedures apply.

  4. Statute Date - enter ASESD if it has expired.

  5. Statute Code - leave blank

8.20.5.10  (10-20-2014)
Introduction to Appeals Consideration of Claim and Overassessment Cases

  1. Appeals considers claim and overassessment cases on any taxes or other matters that the IRS considers. Exceptions to this general authority are in Delegation Order (DO) 8-8 (formerly DO-66). See IRM 1.2.47.9 .

  2. Claims can be:

    1. part of a case file received by Appeals or

    2. filed by the taxpayer during Appeals consideration

  3. An overassessment case becomes an overpayment case when there is a refund indicated.

  4. An Appeals overassessment case is not a claim for refund. Instead it is an overassessment determined by the SB/SE Area Director or the Director, Field Operations.

  5. Claims for abatement - filed with reasons acceptable to an SB/SE Area Director, the Director of Field Operations, SB/SE or W&I Campus Director, or the Compliance Area Director, SB/SE, Compliance Area 15 - are considered by Appeals on their merits, if protested.

  6. IRM 8.7.7 basically covers three separate categories of information - (1) general information pertaining to claims and overassessments; (2) specific procedures for processing regular claim and overassessment cases; and (3) specific procedures for processing claims for abatement of interest.

8.20.5.11  (10-20-2014)
Receipt of Claim Cases or Overassessment Cases

  1. APS will determine if the items listed on the Form 3210 were received, sign the acknowledgment copy of the Form 3210, and return it to the originator by mail or fax. APS will retain a copy of the Form 3210 in the case file.

  2. Taxpayers can file a claim on Form 843, Claim for Refund and Request for Abatement, Form 1040X, Amended U.S. Individual Income Tax Return, or Form 1120X, Amended U.S. Corporation Income Tax Return. Correspondence from the taxpayer can be determined to be an "informal" claim by the ATE.

8.20.5.11.1  (10-20-2014)
Claim or Overassessment Case Carding

  1. Establish the case on ACDS following normal procedures, except for the following ACDS fields:

    • STATUTE DATE - enter the assessment statute date, if it has not expired; if the statute has expired, leave blank.

    • STATCODE -enter CLAIM

    • DDAMTCLM - enter the claim amount disallowed for Area Compliance cases. (See page 2 of AMDISA).

    • APPEALS AMTCLM - enter the amount of the claim, if claim received from a Campus and is not on AIMS.

  2. For Trust Fund Recovery Penalty (TFRP) claim cases, refer to IRM 8.20.5.41.2.4.4

8.20.5.12  (10-20-2014)
Collection Appeal Program (CAP) Case Carding

  1. Appeals is required to make every effort to resolve CAP cases within five (5) business days; therefore, they are given a priority. Because of the short turn around time, CAP cases are received by E-fax. CAP cases may also be sent electronically via encrypted E-mail to the AP Collection Appeals Program outlook account.

  2. CAP cases originate either from Collection (Field Collection or the Automated Collection System (ACS)) or from Accounts Management. Field CAP requests must be in writing; while taxpayers are encouraged to use Form 9423 written requests other than on Form 9423 are acceptable. ACS cases are initiated by the taxpayer's oral request and received as an ACS screen print. A written request is not required. Customer Service cases will be submitted on Form 4442.

  3. Case files will be emailed to the ATM for assignment using Internal CAP to Field Routing link the Appeals case routing website. The ATM is responsible for forwarding the case to the assigned Settlement Officer.

  4. On the CASES level inventory screen, follow normal procedures and enter:

    1. MFT - If more than one MFT, enter the BMF code rather than the IMF code. If there is more than one BMF code, enter 01

    2. TYPE - enter one of the following:
      "CAPLN" for a lien case
      "CAPLV" for a levy case
      " CAPSZ" for a seizure case or
      "CAPIA" for an installment agreement case

      Note:

      If more than one TYPE is marked on the CAP Request form, enter the first one that is marked.

    3. SOURCE - Enter "CO" or "SC" as appropriate

    4. NOTES - Enter "ACS" if the case is from the Automated Collection System (ACS) or "AM" if the case is from Accounts Management.

  5. No data will be entered on the RETURNS level information screen.

    Note:

    If the case comes to Appeals on eCase, the APS Tax Examiner must verify the information for database accuracy and the APS Tax Examiner will add additional fields or update the fields (such as other MFTs and SSN) as necessary. If more than one TYPE is marked on the CAP Request Form, enter in order of precedence, CAPSZ, CAPLV, CAPLN, CAPIA.


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