8.20.6  Interim Actions

Manual Transmittal

September 25, 2014

Purpose

(1) This document transmits revised IRM 8.20.6, Account and Processing Support (APS), Interim Actions.

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 identified below:

  • IRM 8.20.5 Revision Date November 5, 2013

  • IRM 8.20.6 Revision Date September 11, 2013

  • IRM 8.20.7 Revision Date November 13, 2013

Material Changes

(1) Exhibit 8.20.6-2, General Acronym Definitions Included in IRM 8.20.6, is provided for quick reference for the general acronyms used within this IRM.

(2) Exhibit 8.20.6-3, Appeals Centralized Database System (ACDS) Acronyms and Codes Included in IRM 8.20.6, is provided for quick reference for the ACDS acronyms and ACDS codes used within this IRM.

(3) Exhibit 8.20.6-4, Audit Information Management System (AIMS) Acronyms and Codes Included in IRM 8.20.6., is provided for quick reference for the AIMS acronyms and AIMS command codes used within this IRM.

(4) Exhibit 8.20.6-5, Integrated Data Retrieval System (IDRS) and Corporate Files On-Line (CFOL) Acronyms Included In this IRM, is provided for quick reference for the IDRS and CFOL acronyms and command codes used within this IRM.

(5) Editorial changes are made throughout.

(6) Cross reference citations to obsolete IRMs are removed.

(7) Links and citations are updated.

(8) The acronym ATE (Appeals Technical Employee) replaces all references to the following Appeals Employee Categories:

  • Appeals Officer

  • Settlement Officer

  • Tax Computation Specialist (when appropriate)

  • Hearing officer

  • Appeals Team Case Leader

(9) This IRM is updated with tables, alpha lists, bullet lists, step lists, and use of active voice to conform with Plain Writing Guidelines.

(10) The IRM references (X.X.X) following some of the IRM Chapter and Section headings identifies the original source IRM location from which the guidance was copied during the FY 13 APS IRM Reorganization. The source IRM revision used for the FY 13 APS IRM Reorganization, was the current revision for each IRM available on publishing as of May 2013.

(11) All references to the Collection Due Process Tracking System (CDPTS) are removed because Appeals no longer uses this system.

(12) "Appeals Referral Investigation (ARI) Issuance" is obsolete and guidance for this process is removed from this IRM due to the Appeals Judicial Approach and Culture (AJAC) project.

(13) The order and organization of various sections are changed to improve readability and logical progression of guidance.

(14) IRM 8.20.6.1, Appeals Payment Processing Overview, is revised to clarify how remittances received in Appeals must be handled since APS is no longer responsible for receipt and processing of non-APS Appeals office mail. A citation to IRM 8.7.17, Technical and Procedural Guidance - Appeals Remittance Procedures is added.

(15) IRM 8.20.6.1.1, IRC 6603 Deposits, Undesignated Remittances and Conversion of Cash Bonds Under Revenue Procedure 2005-18, is updated to clarify procedures and requirements for the ATE to document IRC 6603 Deposit information on Form 5402 for APS interest computation accuracy.

(16) IRM 8.20.6.1.2, Interest on IRC 6603 Deposits, is updated to add paragraph (3).

(17) IRM 8.20.6.2, Address or Name Change - Form 2363, is updated to clarify the requirement for immediate and timely update of entity changes upon notification by ATE.

(18) IRM 8.20.6.3, AIMS Status Update (AMSTU) and AIMS Data Field Correction (AMAXU) is updated to provide an Example, and a Reminder for APS to update the AIMS Status whenever a case in Appeals becomes Docketed.

(19) IRM 8.20.6.4, ACDS and AIMS Update and Correction Procedures, title of this section is updated to clarify that when an ACDS ASED update is submitted by the ATE, APS must also ensure the ASED on the AIMS Database is updated.

(20) IRM 8.20.6.4.1, ACDS Statute Date Update Requested by Appeals Technical Employee (ATE), is updated with a listing of AIMS Alpha Statute Codes which match the listed ACDS Statute Code. A Note is added to remind APS TEs to update the AIMS Status from 80 Non-Docketed to 82 Docketed whenever an Appeals-issued SND is petitioned.

(21) IRM 8.20.6.4.2, ACDS - Updating Case Status includes an additional paragraph to reiterate the requirement for ACDS to always reflect the correct location and status of the case.

(22) IRM 8.20.6.4.3, ACDS Closing Code 30 - Transfers of Cases Between Areas Within Appeals (8.4.2.5), and IRM 8.20.6.4.4, ACDS Closing Code 40 - Re-assignment of Cases Within the Same Area, are revised to correct and clarify each of these actions.

(23) IRM 8.20.6.4.6, Audit Information Management System (AIMS) Status and Database Update Command Codes (CC), is added to clarify the use of AIMS CCs and their respective definers. Cross-reference to applicable IRMs are also included.

(24) IRM 8.20.6.5, Certified and Registered Mail Procedures, is updated to specify the requirement for APS to retain the Certified and Registered Mail Records for 5 years.

(25) IRM 8.20.6.6, Form 3210, Document Transmittal Follow-up Requirement is added to provide a quick reference for the Form 3210 suspense and follow-up requirement guidelines.

(26) IRM 8.20.6.7, Procedures for Shipping Personally Identifiable Information (PII) is added to provide a quick reference to the policy and guidance for the mandatory protection of PII.

(27) IRM 8.20.6.9.1, Statutory Notice of Deficiency Issued by Appeals - Cases to Counsel for Concurrence, is updated with guidance to avoid unnecessary mailing of cases between Appeals ATE and Counsel when they are co-located but the APS Office is not. This guidance eliminates unnecessary shipment of cases, yet allows for timely ACDS update to promote inventory control and database accuracy.

(28) IRM 8.20.6.9.2, Statutory Notice of Deficiency Issued by Appeals - Cases Returned by Counsel - Concurrence Approved, is updated with guidance to avoid unnecessary mailing of cases between Appeals ATE and Counsel when they are co-located but the APS Office is not. This guidance eliminates unnecessary shipment of cases, yet allows for timely ACDS update to promote inventory control and database accuracy.

(29) IRM 8.20.6.9.3, Statutory Notice of Deficiency Issued by Appeals - Cases Returned by Counsel - Without Concurrence, is updated with guidance to avoid unnecessary mailing of cases between Appeals ATE and Counsel when they are co-located but the APS Office is not. This guidance eliminates unnecessary shipment of cases, yet allows for timely ACDS update to promote inventory control and database accuracy.

(30) IRM 8.20.6.9.5, ACDS SNTYPE Update (8.17.4.31), is updated to remove references to FSAA, FSAD, and FSAS since they are no longer issued.

(31) IRM 8.20.6.9.6, Undeliverable or Unclaimed "Appeals-issued" Statutory Notice of Deficiency (8.2.2.3.1) includes new guidance for handling undeliverable or unclaimed SNDs and an "If-Then" table is included for the various scenarios and actions required by the ATE, ATM, APS TE, and PTM.

(32) IRM 8.20.6.9.7, Reconsideration of "Appeals Issued" Statutory Notice of Deficiency During Suspense Period (8.2.2.5) is updated to add (1) e) and (2) d).

(33) IRM 8.20.6.9.8(5), Tax Court Petition Filed During the "Appeals Issued" Statutory Notice of Deficiency Suspense Period (8.2.2.8), is updated to include a bullet list for actions APS must take to verify that both taxpayers signed the petition on a married filing joint SND and also that all tax periods listed on the SND are included in the petition. (5) is updated to include DC Office identifier and ATTORNEY name.

(34) IRM 8.20.6.9.9, Disposition of "Appeals-issued" Statutory Notice of Deficiency (SND) Cases (8.2.2.9), includes a "Caution" to always review the petition and verify the items in the bullet listing as provided within IRM 8.20.6.9.8.

(35) IRM 8.20.6.9.10, Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Appeals Issued" SND (8.2.2.12) and sub sections are updated to remove intermingled guidance for Compliance Issued SNDs. An If/And/Then Table is included to provide decision points for APS.

(36) IRM 8.20.6.9.10.1, Non-Petitioning Spouse in "Appeals Issued" Statutory Notice of Deficiency, is updated to streamline guidance, identify actions steps and identify IDRS adjustment and update requirements. Added instruction to use Item 57 when Item 56 equals SA.

(37) IRM 8.20.6.9.10.2, ACDS and AIMS Updates on Appeals Issued SND Non-Petitioning Spouse (8.2.2.13), includes reorganized procedures and clarified steps for updating ACDS to correctly reflect the controlling statute date and statute code when NPS SND is awaiting agreement/default, and MFT 31 assessment. Paragraphs (5)-(8) provide ACDS and MFT 31 update requirements upon verification of the MFT 31 adjustment posting. The requirement to enter the CSED Date and Statute Code CSED on the NPS ACDS record is removed and replaced with updated procedures in (6). PEAS suspense and monitoring requirements are included.

(38) IRM 8.20.6.9.10.3, Non-Petitioned Year in an "Appeals-Issued" Statutory Notice of Deficiency, is updated to reorganize and clarify guidance and add cross-reference IRM citations and reiterate the requirement for the APS TE to always document their action within the PEAS case activity record (CAR).

(39) IRM 8.20.6.10, Statutory Notice of Deficiency (SND) Issued by Compliance - Premature Default/Assessment (8.4.1.7.2), is updated to add (6) to identify the 3 new ACDS fields for tracking docketed case action dates.

(40) IRM 8.20.6.10.1, Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Compliance-Issued SND" , is updated to clarify Compliance' jurisdiction and responsibility on the non-petitioning taxpayer, or the non-petitioned tax period, and also identifies the guidelines for when an APS PTM can authorize a protective assessment. This section is also updated to include hyperlinks for APS TEs to use for locating contact points when communication with the originating function is necessary.

(41) IRM 8.20.6 sub-sections for Identifying Source of SND on TLCATS (8.4.2.4) and Appeals Office Administrative File Location on TLCATS (8.4.2.4.1) are removed from this revision since they are more appropriately included in IRM 8.20.5, Account and Processing Support (APS), Carding New Receipts.

(42) The Docketed Cases section within this revision of IRM 8.20.6 are reorganized to more closely match the interim processes applicable to Appeals and Counsel actions when attempting to settle a docketed case.

(43) IRM 8.20.6.11, Docketed Cases Settled by Appeals - STIPFF (8.4.1.23), is updated to specify procedures for case movement and update of ACDS when APS is not included in the transmission of the case between the ATE/ATM and Counsel, and when APS is included. An "If/And/Then" Table is inserted to clarify decision points for APS.

(44) IRM 8.20.6.12, Docketed Cases Settled by Appeals, Counsel Prepares the STIP - PREPSTIP, is updated to specify procedures for case movement and update of ACDS when APS is not included in the transmission of the case between the ATE/ATM and Counsel, and when APS is included. An "If/Then" Table is inserted to clarify decision points for APS.

(45) IRM 8.20.6.13, Docketed Case Not Settled by Appeals - Jurisdiction Released to Counsel DCJUR (8.4.1.24), includes (9) which clarifies that a case submitted by Counsel to APS for final closing and which has an ACDS Category Code of IC or CIC, or is an Estate and Gift Tax case, must be submitted to the APS-CIT for processing and not incorporated into the receiving APS office closing inventory. This additional guidance documents the screening process that has been required since APS-CIT was established in November 2004.

(46) IRM 8.20.6.14, Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel (8.4.1.28), is updated to add (5) b) which documents the requirement for the ATE/ATM to submit an ACDS Update request when a case is returned directly to the ATE/ATM by Counsel and not through APS. The addition of this procedure supports ACDS database accuracy.

(47) IRM 8.20.6.16, DECENT and ORDENT Procedures (8.4.2.8) & (8.4.1.29), is updated to clarify and streamline guidance for the various categories of cases on which a Tax Court Decision or a Tax Court Order to Dismiss applies

(48) IRM 8.20.6.17.1, Entered Order to Dismiss for Lack or Jurisdiction (8.4.1.30.1), is updated to provide additional information for the reason the USTC may dismiss a case.

(49) IRM 8.20.6.17.2, Entered Order to Dismiss for Lack of Prosecution (8.4.1.30.2), is updated to provide additional information.

(50) IRM 8.20.6.17.3, Entered Decision/Order is Vacated (8.4.1.30.6), is expanded to provide guidance to APS when an entered decision/order is vacated by the court.

(51) IRM 8.20.6.18, Appeal of Tax Court Decision (8.4.1.31) and sub-sections are updated and reorganized to clarify APS actions when an Entered Tax Court Decision is Appealed.

(52) IRM 8.20.6.18.3, Appeal Filed by Petitioner, No Bond Filed (8.4.1.31.4), is updated to identify that the decision document will not contain the IRC 6213(a) waiver paragraph which requires the assessment be processed without an agreement date. (2) and (3) are added to clarify that a case with an ACDS Category Code of "IC" , "CIC" , or an Estate and Gift tax case must be submitted to APS-CIT for processing of the entered decision being Appealed. PEAS monitoring requirements are specified.

(53) IRM 8.20.6.18.4, Refund of Credit While an Appeal of the Tax Court Decision is Pending (8.4.1.31.2), is reorganized under the "Appeals of Tax Court Decision" section.

(54) IRM 8.20.6.19, Interim Adjustment and Interim Account Update Processing, is updated to clarify the difference between an Interim Adjustment, and an Interim Account Update. (10) is added to document the mandatory requirement for APS TE's to use Integrated Automation Technology (IAT). (11) is added to identify the mandatory PEAS suspense and monitoring requirement for all adjustments and account updates. (12) is added to document the requirement for APS TE's to close any IDRS Control Base assigned to their IDRS number when their input transactions post.

(55) IRM 8.20.6.20, Interim Adjustments (Partial Assessments/Abatements), is updated to identify the most common reasons an interim adjustment is necessary and clarify which types of adjustments are processed via AIMS or Non-AIMS command codes.

(56) IRM 8.20.6.20.2, Partial (Interim) Assessments AIMS CC: AMCLSF, is reorganized and updated to include cross reference citations to IRM sections, which provide guidance on Posting Delay Codes, and Form 2859.

(57) IRM 8.20.6.20.3, Partial Interim Assessment/Abatement Non-AIMS CC: REQ54/ADJ54, is significantly updated to include detailed instructions for review, update and processing of Form 3870, Request for Adjustment. (5) is included to identify the mandatory PEAS suspense and monitoring requirement for all adjustments and account updates.

(58) IRM 8.20.6.20.4, Partial Agreements > $1 Million on Team Cases is completely rewritten with a table inserted to specify step by step procedures for creating a new Work Unit Number (WUNO) for the agreed issues, updating the original WUNO for unagreed issues, and processing the partial agreement adjustment.

(59) IRM 8.20.6.21.1, Collection Due Process (CDP) Interim Adjustments (8.22.1.2.2) is updated to include mandatory monitoring of account updates by the APS TE.

(60) IRM 8.20.6.21.2, CDP Notices of Determination (NOD) (8.22.1.3.1) is updated to add (3) e) Place the certified mail number on the original letter and also include on all additional copies.

(61) The subsection title is updated for IRM 8.20.6.22.1, Petitioned CDP Cases - DCJUR (8.22.1.5.1).

(62) IRM 8.20.6.22.2, CDP Cases Remanded by the U.S. Tax Court and Supplemental Notices of Determination (8.22.1.3.2) is updated to clarify guidance, streamline and direct case movement, and improve inventory control.

(63) IRM 8.20.6.23, Disaster Relief Cases (8.7.1.10), is updated with (2) to clarify that when the "DR" feature code is added to ACDS, the suspense time frame, if known, should also be entered in ACDS Notes.

(64) IRM 8.20.6.24, Employee Plan Exempt Organization (EP/EO) Adverse Determination Letters (8.7.8.9) is updated with current address information.

(65) IRM 8.20.6.25, Employee Tax Compliance (ETC) includes subsections which are updated to change step lists to alpha lists in response to clearance comments. The term "monitors" is replaced with the term "suspenses" in IRM 8.20.6.25.1, Employee Tax Compliance (ETC) Exam Unagreed Non-Docketed Cases (8.1.8.5).

(66) IRM 8.20.6.26.1, Input of ID Theft Tracking Indicator (IRM 8.6.5.2.2), is updated to separate the input of the ID Theft Tracking Indicator from the Reversal of the ID Theft Tracking Indicator procedures. (1) identifies that APS will complete input of ID Theft tracking indicator requests within 5 business days of receipt.

(67) IRM 8.20.6.27, Innocent Spouse Interim Procedures several of the subsections required reordering of paragraphs and tables as well as separation of information into additional list items.

(68) IRM 8.20.6.28, Installment Agreement (IA) Collection Related Actions (8.22.7.5 and 8.24.1.2.3) (3) is added to provide a cross-reference to IRM 8.20.7.37 Installment Agreements (IA).

(69) IRM 8.20.6.30, Offer In Compromise (OIC) Interim Actions is updated to:

  • Clarify steps and cross-reference to IRM 8.20.5 for OIC carding actions

  • Provide clear guidance for when an OIC requires Counsel review

  • Provide an "If/Then" Table for OIC case movement from Appeals to Counsel

  • Provide an "If/Then" Table for OIC case movement from Counsel to Appeals

(70) IRM 8.20.6.30.1, Offer In Compromise (OIC) Received After the Related CDP or EH Case (8.23.6(6)) (2)d) is updated for Feature Code CO requirement in compliance with AJAC 2 implementation.

(71) IRM 8.20.6.30.2, Counsel Review of Accepted OICs - DCOTHER (8.23.6.2.1), is updated with a table for OIC To Counsel for Review and a table for OIC From Counsel Review Complete.

(72) IRM 8.20.6.31, Personal Holding Company Tax Alleviated by Deficiency Dividend (8.7.1.2) includes a bullet list and (1) c) is added.

(73) IRM 8.20.6.33, Third Party Database Maintenance (8.1.6.2.6 and 8.1.6.2.7) is updated with a link to IRM 25.27.1.6, Area/Campus TPC Coordinators and Input Personnel.

(74) IRM 8.20.6.34, APS Reports Team Procedures is a new section, which is included to improve transparency of the APS Reports Team process and replace the use of unofficial desk guides. A link to IRM 8.10.1, Appeals Reports and Projects, Internal Reports is inserted for step by step guidance applicable to each report.

Effect on Other Documents

This IRM supersedes IRM 8.20.6, Account and Processing Support (APS), Interim Actions dated January 10, 2014.

Audience

Appeals

Effective Date

(10-01-2014)

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

8.20.6.1  (10-01-2014)
Appeals Payment Processing Overview

  1. Checks received in Appeals must be promptly provided to the designated Appeals Technical Employee (ATE) for preparation of Form 3244-A, Payment Posting Voucher - Examination and Form 3210, Transmittal to ensure timely transmission to the appropriate Remittance Processing Function. See IRM 8.7.17, Technical and Procedural Guidance - Appeals Remittance Procedures for additional information.

  2. When the Appeals Technical Employee (ATE), determines that an interim assessment must be made as a result of receipt of the payment, the ATE will use Form 5402 to request that APS process an interim assessment. See IRM 8.7.17.1.3, Procedure for Assessing Advanced Remittances for additional information.

  3. If the ATE determines the remittance received is an IRC 6603Deposit, they will provide this information on the Form 5402 to differentiate the 6603 Deposit from an advanced payment of tax.

  4. Taxpayers may also use the Electronic Federal Tax Payment System (EFTPS) to submit IRC 6603Deposits, advance payments and other types of remittance. For more information, see IRM 3.17.277, Electronic Payments.

8.20.6.1.1  (10-01-2014)
IRC 6603 Deposits, Undesignated Remittances and Conversion of Cash Bonds Under Revenue Procedure 2005-18

  1. The ATE will annotate Form 5402, Appeals Transmittal and Case Memorandum, with information pertaining to payments or 6603 Deposits received in Appeals for the following circumstances:

    1. Remittances received while the case is in Appeals

    2. Information pertaining to remittances identified by the taxpayer but not found on the transcript of account

    3. Amount of advanced payment(s) and tax period(s) to which the payment applies

    4. If a payment has an amount designated to pay tax, or penalty, or interest

    5. For IRC 6603 deposits, the amount of disputable tax, the date of the "Notice" , i.e. 30-Day or 90-Day Letter explaining the disputable tax or the presence of a copy of the 30-Day letter received by the Service with the designation (date stamped)

      Note:

      Since the taxpayer can request the return/refund of an IRC 6603 Deposit at any time prior to its conversion to a payment upon the posting of an assessment, APS must have the information identified in e) above to correctly calculate the overpayment interest at the Federal short term rate on the portion of the IRC 6603 Deposit refunded to the taxpayer.

8.20.6.1.2  (10-01-2014)
Interest on IRC 6603 Deposits

  1. Section 8 of Rev. Proc. 2005-18 provides procedures for the accrual of underpayment interest when a remittance is made. Since interest continues to accrue on accrued interest, a taxpayer must remit enough to cover all accrued interest as of the date of remittance, as well as the entire amount of the underlying tax in order to stop the running of any additional interest.

  2. Underpayment interest is suspended on the date the payment of tax or the date an IRC 6603 Deposit is received by the Service regardless of when the liability is assessed or the remittance is effectively posted to the taxpayer’s account as a deposit.

  3. The Service retains the remittance as a 6603 Deposit during consideration of the tax case, however, if the taxpayer submits a written request for all or a portion of the 6603 Deposit to be refunded to them, prior to the resolution of the tax case, underpayment interest, when computed, is not suspended for the period of time the refunded amount of the 6603 Deposit was held if a deficiency is later assessed for that period and type of tax.

  4. IRC 6603 Deposits, when refunded are allowed overpayment interest at the Federal short-term rate determined under IRC 6621(b), compounded daily. Overpayment interest allowed on a IRC 6603 Deposit returned at a taxpayer’s request must be manually computed and input with transaction code (TC) 770.

  5. See IRM 20.2.4.8.2, IRC 6603 Deposits for additional information.

8.20.6.2  (10-01-2014)
Address or Name Change - Form 2363

  1. When the Appeals Technical Employee (ATE) determines changes to the taxpayer name and/or address are required, they will make the change using the AIVP Validation Tracking System (VTS), Other Validation. The validation is available from the AO/SO Validation menu accessible from the CARATS screen or the Case Summary Card bottom menu. The change will be designated as a Normal Update (N) if the change is the result of new case information. If the change is to correct an error on ACDS the change will be designated as an Error Correction (E) on the validation screen.

  2. Updates to a taxpayer's name or address must be entered on ACDS timely and not delayed until the case is submitted to APS for final closing.

  3. To ensure that IDRS reflects the correct name and address for the taxpayer, the ATE will submit a request to APS to update the taxpayer's information on IDRS.

  4. Immediately upon request by an ATE, APS will prepare Form 2363, Master File Entity Change, and input the information on IDRS. Name and address changes may be input on the same Form 2363 or each change may be input separately.

  5. See IRM 2.4.9, IDRS Terminal Input, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG for additional information.

8.20.6.3  (10-01-2014)
AIMS Status Update (AMSTU) and AIMS Data Field Correction (AMAXU)

  1. APS is required to update both AIMS and ACDS when appropriate to ensure database accuracy.

  2. APS will update AIMS when there is a change in the status of a case. To update the AIMS Status from 81 to 80 Non-Docketed Appeals, or 82 Docketed Appeals, use command code AMSTUA. To update the AIMS Status 80 Non-Docketed Appeals to Status 82 Docketed Appeals, use command code AMSTUB.

    Example:

    When an Appeals case is in AIMS Status 80 "Non-Docketed Appeals" , and a Statutory Notice of Deficiency is issued by Appeals, if the taxpayer petitions the United States Tax Court (USTC), APS must update the AIMS Status to 82 "Docketed Appeals" upon transmittal of the case to Counsel. For this AIMS Status Update, use CC: AMSTUB.

    Reminder:

    AIMS and ACDS must match with respect to the correct status of the case to ensure database accuracy of both systems. If the current AIMS Status is 80, (Non-Docketed Appeals), and ACDS shows the case is docketed, the case will be reflected on the AMATCH Mismatch Data Report which must be worked quarterly by each APS PTM for their respective Appeals Office Code (AOC).

  3. See IRM 8.10.1.10.4, Returns with Mismatched Data, for additional information.

  4. CC: AMSTUB is also used to update the Assessment Statute Expiration Date (ASED).

  5. See IRM 8.20.6.4.6, Audit Information Management System (AIMS) Status and Database Update Command Codes (CC), for additional information.

  6. APS will use command code AMAXUA when appropriate to correct the AIMS data elements identified below:

    • Item 16 — Appeals Code

    • Item 20 — Claim Rejection Date

    • Item 42 — ARDI Indicator (Payment Code)

    • Item 800 — Appeals Results

    • Item 801 — Counsel Results

    • Item 802 — Appeals Adjustment Amount

    • Item 803 — Appeals Grade

    • Item 804 — Appeals Time

    • Item 805 — Counsel Adjustment Amount

    • Item 806 — Counsel Grade

    • Item 807 — Counsel Time

    • Item 808 — Amount Disallowed — Exam Claim

    • Item 809 — Amount of Appeals/Counsel Claim

    • Item 810 — Amount Disallowed — Appeals/Counsel Claim

    • Item 811 — Closing Code

    • Item 820 — Workunit Number

    • Item 821 — Prior Appeals Code

  7. Command Code AMAXUA cannot be used to correct TIN, MFT, file source, tax period, or name control.

  8. See IRM 8.20.6.4.6, Audit Information Management System (AIMS) Status and Database Update Command Codes (CC), for additional information.

  9. Updates, changes and modifications to critical data fields on cases where AIMS = Y requires the Appeals Technical Employee (ATE) to select the appropriate Processing Team Manager (PTM) in the Validation Tracking System to ensure that the request for AIMS update is sent to the PTM's PEAS mailbox. The PTM, upon receipt of the systemic notification, will assign the update to the appropriate APS Tax Examiner (TE) for update of AIMS and PCS as requested.

8.20.6.4  (10-01-2014)
ACDS and AIMS Update and Correction Procedures

  1. Appeals employees must use the validation tracking system to update ACDS critical data fields. APS will reject all requests that are available for the ATE to update through the VTS.

  2. The ATE will use the following procedures to request assistance from APS to correct or update ACDS:

    1. Prepare "ACDS Update Request Form" or "APS Request Form for Collection Cases" found on APGolf under ACDS Updates, completing only the required items.

    2. Find the correct e-mail address on OUTLOOK Global Address List - *AP-PQCS-APS-(your Area, East, West or Campus)-(your APS update office) ACDS Update Request.

      Example:

      *AP-PQCS-APS-East-ATL ACDS Update Request

    3. E-mail the "ACDS Update Request Form" via encrypted e-mail.

      Note:

      Do not send update requests to the PTM’s Outlook e-mail address.

  3. APS will:

    1. Process the "ACDS Update Request Form" within 3 business days of receipt.

    2. E-mail the requesting employee if clarification is needed to process the request.

    3. Reject any request for update/correction when not submitted via the electronic form/mailbox.

  4. The electronic mailbox allows APS management to monitor timeliness and accuracy of the ACDS Update Requests.

8.20.6.4.1  (10-01-2014)
ACDS Statute Date Update Requested by Appeals Technical Employee (ATE)

  1. Upon receipt of an ACDS Statute Update Notification, the APS TE will use CC: AMSTUB to update the AIMS ASED as requested by the ATE. The AIMS ASED is updated to the corresponding Extended Assessment Statute Expiration Date (ASED) or applicable AIMS Alpha Statute Code as follows:

    • Extended ASED date per the Statute Extension i.e. Form 872

    • ASED Code 872–A for an open ended Statute Extension i.e. Form 872-A

    • AIMS Alpha Statute per ACDS Statute Code
      CLAIM = "AA"
      CBYYMM = "BB"
      RFRTN = "FF"
      10495 = "GG" for Non-TEFRA Flow Thru
      TFINV = "HH"
      10495 = "PP" ATE intentionally allowing the statute to expire

    Note:

    The AIMS Statute Date is systemically updated to MM-"QQ" -YYYY when the AIMS Status Code 80, or 81 is updated to 82, "Docketed Appeals"

    .

8.20.6.4.2  (10-01-2014)
ACDS - Updating Case Status

  1. ACDS must always reflect the location of the case. At anytime a case moves from one location to another or is closed, the action must be updated to reflect the move/closure of the case.

  2. When the status of a case is changed on AIMS, ACDS must also be updated to identify the location of the case. Some items that may need to be updated are:

    • ACTION - code to describe action taken

    • TODATE - date action started

    • FROMDATE - date action ended

    • LACTION - code to describe action (locally defined)

    • LTODATE - date local action started

    • LFROMDATE - date local action ended

  3. See the ACDS Utilities Menu for a list of current status codes.

8.20.6.4.3  (10-01-2014)
ACDS Closing Code 30 - Transfers of Cases Between Areas Within Appeals (8.4.2.5)

  1. Any necessary approvals of the Appeals Area Directors or the Chief, Appeals will be secured by the ATM and documented in the file before submitting the case to APS to complete the transfer.

  2. The ATM will enter a CC 30 action through their ATM closing screen which will automatically generate a PEAS unassigned record.

  3. The sending Appeals APS Office will transmit the following items:

    • Administrative File

    • Form 3210, Document Transmittal, original and 1 copy

    • ACDS Transfer Form (if used)

    • AMDISA print for each return to verify the AIMS controls have been transferred to the new Appeals Office Code (AOC)

    Reminder:

    Never transfer an AIMS record in status 81. Update AIMS to status 80 or 82 before transmitting the administrative file.

  4. Make the following ACDS updates to transfer a case:

    1. Select "Special Activities Menu"

    2. Select "Closing Code 30 Update – Transfer to another Office" and search for the case

    3. Select the TRANSFER AREA (The Area you are transferring the case TO)

    4. Select a TRANSFER AOC from the list of valid TRANSFER AOCs for the TRANSFER AREA

    5. Select the correct TRANSFER POD, if there is more than one POD for the TRANSFER AOC

    6. Select DATECLSD/TODATE = date the case is mailed

    7. Select "R" for a Regular Transfer or "W" for a Workload Transfer

    8. Select "Submit Update"

    9. Do Not Update ACTION, ACDS systemically updates this field with ACTION = "TR NNXXPODC" (NN=Area, XX=AOC, POD=POD Initials, C=R or W)

  5. When a return is on AIMS and is transferred to another AOC, the sending office will transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.4.6, Audit Information Management System (AIMS) Status and Database Update Command Codes (CC), for additional information.

  6. When the case is received, the receiving office will accept the case from the INBOX by selecting "(Y)es ACCEPT this transfer case" , which will systemically enter a FROMDATE in the ACTION "TR NNXXPODC" field. Manually enter the FROMDATE in the LACTION "POD-POD" field.

  7. The receiving office will acknowledge receipt by signing and dating the appropriate boxes and returning a copy of the signed Form 3210 to the transferring Appeals Office. If some reason exists for not accepting a transfer, the receiving office will return the case with an explanation.

    Reminder:

    Contact with the originating ATM by telephone or e-mail is required before returning the case to minimize shipping cost and for protection of the taxpayer's Personally Identifiable Information (PII).

  8. See IRM 8.20.6.4.4, ACDS Closing Code 40 - Re-assignment of Cases Within the Same Area for cases re-assigned to another ATE within the same area.

8.20.6.4.4  (10-01-2014)
ACDS Closing Code 40 - Re-assignment of Cases Within the Same Area

  1. Cases are re-assigned to another Appeals Technical Employee (ATE) after approval by the Appeals Team Manager (ATM). The ATE will print out a re-assignment sheet and the ATM will identify the new ATE.

  2. Cases are only re-assigned if both ATEs are in the same area.

  3. Make the following ACDS updates to re-assign a case:

    1. Select "Special Activities Menu"

    2. Select "Closing Code 40 Update – Reassign to another AO" and search for the case

    3. Select the new Appeals Technical Employee. The list is alphabetical by last name

      Note:

      To determine proper routing, refer to Case Routing instructions for the specific work stream found on the Appeals Web site. https://organization.ds.irsnet.gov/sites/APPEALS-PQCS/TPPCOL/Appeals%20Employees%20ONLY%20%20Case%20Routing/Forms/AllItems.aspx.

    4. Update the CORWUGRADE to correct the grade of the case, if necessary

    5. Select "Submit Update"

    6. If you are mailing the case to another POD, return to the "Main Cases Menu" and select "Action Fields Update" and update ACTION = SHIPPED with a TODATE = date mailed and "select POD initials of the receiving office.

      Example:

      "RCH-BAL" means Richmond sent the case to Baltimore for reassignment to another ATE within the same area.

  4. If the case is re-assigned to an Appeals Technical Employee in another office with another Appeals Office Code within the area and the case is on AIMS, transfer the AIMS database using command code AMSOCA. See IRM 8.20.6.4.6, Audit Information Management System (AIMS) Status and Database Update Command Codes (CC), for additional information.

  5. When the case is received from an Appeals Office within the Field area, update ACDS with a FROMDATE in ACTION SHIPPED and on LACTION POD-POD.

  6. Cases re-assigned to an Appeals Technical Employee outside your area, will be closed as a transfer. See IRM 8.20.6.4.3, ACDS Closing Code 30 - Transfers of Cases Between Areas Within Appeals (8.4.2.5).

8.20.6.4.5  (10-01-2014)
ACDS Feature Codes for Post Appeals Mediation Cases (8.26.5.4.17)

  1. For purposes of accurately tracking the amount of direct time on Appeals cases, Appeals mediators will be assigned as a team member on the mediation case.

  2. The Appeals mediator will request that Account and Processing Support (APS):

    1. Input the feature code "TL" to create the Team Leader record for the Appeals Team Case Leader (ATCL) or ATE even if there are no other team members on the case besides the Appeals mediator;

    2. Input the feature code "TM" to create the Team Member record for the Appeals mediator; and

    3. Input the feature code "MD" on the same case to indicate it is a mediation case. (This feature code will only be used on cases for which the taxpayer requests mediation while the case is in Appeals jurisdiction).

  3. The ATCL or ATE is responsible for verifying that APS follows the procedures in IRM 8.7.11, Working Appeals Team Cases, when establishing the team member assignment.

8.20.6.4.6  (10-01-2014)
Audit Information Management System (AIMS) Status and Database Update Command Codes (CC)

  1. While a case is open in Appeals AIMS Status, "non-docketed" , or "docketed" , APS is responsible for verifying and updating the AIMS database to ensure database accuracy. The primary AIMS CCs used for performing the updates are:

    • CC: "AMSTU" , AIMS Status update

    • CC: "AMAXU" , AIMS Data Element update

    • CC: "AMSOC" , AIMS Database Transfer to new AOC

  2. AIMS Command Code (CC) AMSTU has two definers "A" , and "B" .

    • AIMS CC: "AMSTUA" , is used to updated AIMS Status 81, "Appeals Unassigned" , to AIMS Status 80 "Appeals - Nondocketed" , or AIMS Status 82 "Appeals - Docketed" .

    • AIMS CC: "AMSTUB" , is used to updated an AIMS Status 80 "Appeals - Nondocketed" case, to AIMS Status 82 "Appeals - Docketed" when an "Appeals Issued SND" is petitioned to the United States Tax Court (USTC) and the case is sent to Counsel.

    • AIMS CC: "AMSTUB" , is also used to update an Assessment Statute Expiration Date (ASED) on AIMS.

    • For additional information on AIMS CC: AMSTU, see IRM 2.8.4, Audit Information Management System (AIMS), AIMS Command Code AMSTU.

  3. AIMS Command Code (CC) "AMAXU" with definer "A" , is used to update multiple AIMS data elements, including Item 16 Appeals Office Code (AOC). For additional information on AIMS CC: AMAXU, see IRM 2.8.6, Audit Information Management System (AIMS), AIMS Command Code AMAXU.

  4. AIMS CC: "AMSOC" with definer "A" , is used to transfer the AIMS database to the correct AOC. For additional information on AIMS CC: AMSOC, see IRM 2.8.5, Audit Information Management System (AIMS), AIMS Command Code AMSOC.

8.20.6.5  (10-01-2014)
Certified and Registered Mail Procedures

  1. Certified and Registered mail records are maintained for 5 years in compliance with Document 12990, Appeals Records Control Schedule (RCS) 10, Item 6 Mailing Records. APS will maintain a record of delivery of certified or registered mail which may be Post Office Department Form 3877, Firm Mailing Book, or the form used by private mail services.

  2. Computer generated listings are acceptable; however, they must contain the same information and follow a similar format.

  3. APS mails notices of deficiency and also maintains the mailing files. In some locations a centralized or consolidated mail room performs he mailing functions.

  4. Use certified mail for addresses within the United States for issuance of:

    • Abatement of Interest Determination letter

    • Statutory Notice of Deficiency (90-day letter)

    • CDP Notice of Determination letter

    • Innocent Spouse Determination letter

    • Employment Tax Determination letter

    • EP and EO Final Adverse Determination letter

    • Notice of Claim Disallowance under IRC 6532

    • Form 2198, Determination of Liability for Personal Holding Company Tax on Deficiency Dividend cases

  5. Use registered mail for letters to taxpayers with mailing addresses outside the United States. A "Return Receipt" must be requested when sending by registered mail.

8.20.6.5.1  (02-01-2007)
APO and FPO addresses

  1. Military personnel have APO or FPO addresses.

    1. APO = Army or Air Force Post Office

    2. FPO = U.S. Navy Fleet Post Office

  2. Send letters with an APO address for Alaska (zip code 99502) or Hawaii (zip code 96860) by certified mail.

  3. Use registered mail for all other APO addresses, because they are considered to be outside the U.S.

  4. FPO addresses are always considered outside the U.S. Use registered mail for all FPO addresses.

8.20.6.6  (10-01-2014)
Form 3210, Document Transmittal Follow-up Requirement

  1. See IRM 21.1.7.11.4, Suspense Copies, Form 3210, Document Transmittal, for procedures on monitoring and acknowledgement follow-up requirements.

  2. See Document 13056, All Employee Toolkit: Shipping Procedures for Personally Identifiable Information (PII) for information.

  3. Upon receipt of the Form 3210, Document Transmittal acknowledgement, enter the FROMDATE to close the SHIPPED Action.

8.20.6.7  (10-01-2014)
Procedures for Shipping Personally Identifiable Information (PII)

  1. The Shipping Policy for PII Documents is located at: http://publish.no.irs.gov/mailtran/piihardcopy.html

  2. For additional information on shipping PII, go to Employee Toolkit, Shipping Procedures for Personally Identifiable Information (PII).

  3. All Appeals employees must adhere to the procedures for shipping PII.

8.20.6.8  (10-01-2014)
Abatement of Interest Claim Notice of Disallowance Issuance (8.7.7.14.6)

  1. The following guidelines are provided for abatement of interest claims filed after July 30,1996.

  2. The ATE prepares a disallowance letter for unagreed cases. The taxpayer has 180 days to petition the United States Tax Court for review of the disallowance.

  3. Upon receipt of the administrative file with the signed notice of disallowance (Letter 2391 or Letter 2392), mail and retain copies as outlined for notices of deficiency. See list below:

    1. Verify the taxpayer's address using ENMOD or INOLES.

    2. If the taxpayer lives within the U.S., send the final determination letter by certified mail.

    3. If the taxpayer lives outside the U.S., send the letter by registered mail.

    4. Complete PS Form 3800Certified Mail Receipt.

    5. Document the certified mail number on the original and all additional copies.

    6. Send the appropriate copies of the letter and schedules to the representative, if applicable.

    7. Keep a dated copy of the letter and schedules in the administrative file.

    8. Suspend the administrative file until the taxpayer petitions, or the taxpayer defaults.

      Note:

      The taxpayer has 180 days to petition the Tax Court.

    9. In the mailing record - enter the taxpayer's name and mailing address as it appears on the envelope, and enter the mailing date.

  4. Update ACDS:

    • SNTYPE = 180A

    • SNDATE = date letter is mailed

      Reminder:

      The letter MUST be mailed on the date shown on the letter.

    • On the return level screen, SND = Y

  5. APS must retain the administrative file on the disallowed claims for "180 days plus 2 months" to allow time for receipt of taxpayer’s petition to the U.S. Tax Court.

  6. If the letter issued to the taxpayer was for "partial disallowance" , APS processes the abatement on the allowed portion of the claim as an interim adjustment in accordance with the ATE instruction and takes no account adjustment action on the disallowed portion of the claim during the suspense period.

    Note:

    If the interest abatement claim was resolved with finality by obtaining Form 906, Closing Agreement on Final Determination Covering Specific Matters, a final determination letter is not needed. See IRM 8.20.7 for procedures on closing an agreed interest abatement case.

8.20.6.9  (10-01-2014)
Appeals Introduction to Statutory Notice of Deficiency (SND) (8.2.2.1 and 8.2.2.2)

  1. When a statutory notice of deficiency is issued, the case is considered a 90-day case from the date the notice is issued until a petition is filed with the United States Tax Court (USTC) or until expiration of the 90-day period. This section covers how to process 90-day cases that are both resolved and not resolved during the 90-day period.

  2. A statutory notice of deficiency is generally referred to as a 90-day letter.

  3. If there is a deficiency in the case as defined in IRC 6211, IRC 6212 authorizes mailing a statutory notice of deficiency to the taxpayer's last known address using certified or registered mail.

  4. When Appeals issues the statutory notice of deficiency, the case can be reconsidered during the 90-day period.

  5. Reconsideration of a case does not extend the 90-day time in which the taxpayer may petition the Tax Court for a redetermination.

8.20.6.9.1  (10-01-2014)
Statutory Notice of Deficiency Issued by Appeals - Cases to Counsel for Concurrence

  1. Some notices of deficiency, as well as Employee Plans (EP) and Exempt Organizations (EO) final adverse determination letters, will go to Counsel for concurrence before the letter is issued. The ATE will indicate when Counsel concurrence is required. The administrative file sent to Counsel will contain the following:

    • Approved Form 5402 marked for Counsel concurrence and either a completed but unsigned statutory notice or a draft of paragraphs to be included in the statutory notice.

    • All returns and documents which were in the case file when it was received in the Appeals Office.

    • Copies of all correspondence received or sent while the case was in Appeals.

  2. Form 3210, Document Transmittal must be used whenever transmitting taxpayer information.

  3. Enter action code SNDC and the current date (date case sent to Counsel) on the update case screen.

  4. Since Appeals Field Offices are not always co-located with their servicing APS Team, but may be co-located with their servicing Counsel Office, it is not mandatory that cases sent to Counsel for Concurrence be routed through APS; however it is mandatory that ACDS accurately reflect the location of the administrative file.

  5. The Appeals employee who forwards the case to Counsel for SND Concurrence must update ACDS with action code SNDC and the current date (date case sent to Counsel) to document the location of the administrative file.

    Reminder:

    When the SND is sent to Counsel, and the case will not be routed through the designated APS Office, the ATE must submit an ACDS Update Request to their servicing APS Office, requesting the ACDS record be updated with: Action Code = SNDC and a TODATE = to the date on which the file was transmitted to Counsel.

  6. The APS Reports Team will run the SNDC follow-up list on a monthly basis, to determine whether Counsel has returned the administrative file.

8.20.6.9.2  (10-01-2014)
Statutory Notice of Deficiency Issued by Appeals - Cases Returned by Counsel - Concurrence Approved

  1. When the administrative file is returned through APS with Counsel’s approval, APS will:

    1. Review the file to confirm all returns and other documents were returned

    2. Sign and return the acknowledged Form 3210 to the initiator

    3. Return the file to the Appeals Technical Employee, if the file was sent to Counsel with a completed but unsigned notice of deficiency

    4. Send the file to the ATE for preparation of the statutory notice and the ATM's signature, if the file was transmitted to Counsel with a draft of the paragraphs to be included in the statutory notice

    5. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the case update screen.

    6. Use Form 3210, Document Transmittal whenever transmitting taxpayer information

  2. If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for further consideration and action.

8.20.6.9.3  (10-01-2014)
Statutory Notice of Deficiency Issued by Appeals - Cases Returned by Counsel - Without Concurrence

  1. When the administrative file is returned through APS without Counsel’s approval APS will:

    1. Confirm that all returns, documents, and other papers forwarded to Counsel were returned except those intended for Counsel’s retention

    2. Sign and return the acknowledged Form 3210 to the initiator

    3. Update ACDS by entering the date the administrative file was returned by Counsel in the FROMDATE on the update case screen

    4. Send the file to the ATE for further consideration

    5. Use Form 3210, Document Transmittal whenever transmitting taxpayer information

  2. If the case is returned from Counsel directly to the ATE and not through APS, the ATE must ensure the FROMDATE is entered on ACDS to reflect the return of the case to Appeals. If Counsel returns the case to Appeals through APS, the APS TE will update the FROMDATE on ACDS and forward the case to the ATE for further consideration and action.

8.20.6.9.4  (10-01-2014)
"Appeals Issued" Statutory Notices of Deficiency (SND) (8.17.4.29)

  1. APS mails notices of deficiency and maintains the certified mailing files. In some offices, a centralized or consolidated mail room may perform these functions. Certified mail records and files must be retained for 5 years from the issuance date.

  2. The administrative file submitted by the ATE must include an approved Form 5402, a signed notice of deficiency letter and a correctly prepared "right-sized" envelope with the ATE's correct return address.

    Note:

    If the ATE does not provide a correctly prepared "right-sized" envelope, APS will not reject the case for this reason alone. Instead, APS will correctly prepare the envelope(s). If the envelope's return address is different from the ATE's return address, use a label to overlay the envelope's return address with the ATE's correct return address. This will ensure that if the SND is undeliverable or unclaimed, it will be returned to the ATE's local office and received by the ATE.

    Caution:

    Carefully review the taxpayer's address on the envelope as the envelope is used to determine whether the SND was mailed to the "Last Known Address" .

  3. If the notice of deficiency is for a separate individual return, a window envelope may be used. However, use the right sized envelope to avoid disclosing any information other than the name and address.

  4. If the notice of deficiency is for a joint return, each spouse must receive a notice in an envelope addressed only to them. APS will:

    1. Verify the address included on the notice prepared by the ATE and approved by the ATM matches the SPARQ, INOLES or ENMOD print included in the administrative file submitted by the ATE

    2. Compare the name and address of the taxpayer(s) shown on the notice of deficiency with the name and address shown on the envelope(s) to ensure they are the same

    3. Contact the ATE if there is a discrepancy to resolve prior to issuing the SND

  5. Make sure there are a sufficient number of copies of the notice of deficiency and identify them for distribution to the persons designated to receive them.

  6. Verify that the letter, the notice of deficiency, and any agreement form all have the same:

    • Taxpayer(s) name

    • TIN

    • Tax period(s)

    • Deficiency

    • Penalty

  7. Date the notice of deficiency and all copies. The notice of deficiency MUST be mailed on this date.

    Caution:

    APS must be aware of their local mail room requirements regarding postmark dates to ensure that the postmark and letter dates are the same.

  8. ACDS will calculate the "Last Day to Petition Tax Court" and populate the SNEXPDATE field after you enter the SNTYPE and SNDATE fields and click "Submit" . Enter the SNEXPDATE on the SND letter.

    Note:

    ACDS is programmed to account for Saturdays, Sundays and Legal Holidays in the District of Columbia.

    Caution:

    Always use the correct SNTYPE and SNDATE to ensure that the SNEXPDATE is calculated correctly.

    1. Add 90 days to the date the notice of deficiency is issued, if the taxpayer's address is within the United States.

    2. Add 150 days to the date the notice of deficiency is issued, if the taxpayer's address is outside the United States or the Service has knowledge that the taxpayer is out of the country when the notice of deficiency is issued.

    3. Complete PS Form 3800, Certified Mail Receipt.

    4. Notate the certified mail number on the original letter and all additional copies.

  9. Generally, the taxpayer gets the original letter (certified/registered mail) and the representative gets a copy (regular mail). Follow the mailing instructions on the Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, if applicable. This may include:

    • Sending all original documents to the representative (use certified/registered mail) and a copy to the taxpayer (use regular mail). The letter will be addressed to the taxpayer in care of the representative.

    • Sending a copy of the documents to a second representative.

    • NOT sending a copy to the representative.

    Note:

    In the case of duplicate original notices, these same instructions apply to each taxpayer and/or their respective representative(s).

  10. The original notice must be mailed by certified or registered mail.

    • Use Certified Mail when address is within the U.S.

    • Use Registered Mail when address is outside the U.S.

  11. Insert the following in the envelope containing the original notice of deficiency:

    1. Original dated and signed notice of deficiency letter and accompanying statements and schedules as provide by the ATE within the SND package

    2. A return envelope for returning the agreement

  12. Enter the taxpayer’s name, mailing address as it appears on the envelope (in care of representative, if appropriate), and mailing date in the mailing record.

  13. Distribute the remaining copies of the notice of deficiency package as follows:

    • Fasten one copy to the administrative file

    • Forward one copy to Counsel if their prior concurrence was necessary

    • Use Form 3210, Document Transmittal whenever transmitting taxpayer information to an IRS function, Appeals personnel and Counsel personnel

    • Place the administrative file in the "Letter Issued-Awaiting Taxpayer’s Action" file

8.20.6.9.5  (10-01-2014)
ACDS SNTYPE Update (8.17.4.31)

  1. Once a notice of deficiency is issued, update ACDS.

  2. An entry is required in SNTYPE on all cases where a notice of deficiency or a determination letter has been issued, including docketed cases received in from Compliance or the Campus. Select from the following:

    • 090A - Appeals issued notice of deficiency

    • 150A - Appeals issued notice of deficiency 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)

    Note:

    In the event the notice of deficiency is rescinded under Rev. Proc. 98-54, follow the instructions set forth in IRM 8.20.6.9.12.

  3. Make an entry in SNDATE = Date Letter mailed.

  4. The SND expiration date is computer generated.

  5. On the update returns screen enter SND = Y, for each tax period covered by the notice of deficiency.

8.20.6.9.6  (10-01-2014)
Undeliverable or Unclaimed "Appeals Issued" Statutory Notice of Deficiency (8.2.2.3.1)

  1. Occasionally, the mail service is unable to deliver a statutory notice of deficiency, either because the taxpayer cannot be located or because the taxpayer will not accept delivery. In these circumstances, the Post Office returns the statutory notice of deficiency to the Appeals office according to the Return Address on the envelope.

  2. When the undeliverable/unclaimed (UND/UNC) SND is received in Appeals, it must be returned to the ATE for their action and decision.

    IF ATE Decides: THEN APS Will:
    the SND will not be reissued upon receipt of the SND and ATE's written decision, place documents inside of the suspensed administrative file.
    a courtesy copy will be sent to a different address without impact to the existing SND upon receipt of the SND and ATE's written decision, place the previously returned SND into the new "right sized" envelope provided by the ATE and mail to the address identified by the ATE.
    the SND must be reissued and sufficient time remains on the statute, the ATE will generate a new SND with the new Last Known Address, secure ATM approval, and submit the package to APS. upon receipt of the new SND package, APS will:
    1. pull the administrative file from suspense

    2. reissue the new SND via certified mail

    3. update ACDS SNTYPE and SNDATE

    4. suspense the administrative file under the new default date

    the SND was not issued to the last known address and the ASED is expired, the ATE will immediately notify their ATM. The ATM will contact the PTM the same day to alert them of the potential barred statute and request the administrative file be pulled from suspense and returned to the ATE. upon notification from the ATM, and prior to releasing the suspensed administrative file to the ATE, the APS PTM will review the suspensed administrative file, and the information provided to APS with respect to the SND Issuance Address. See IRM 8.21.7.5.1Discovering a Potentially Barred Statute. Coordination between the ATM and PTM is required to ensure timely and accurate reporting of the potentially barred statute and accurate determination of the causation.
    they need the administrative file for their action and decision upon notification by the ATE, APS will:
    1. insert a charge-out notated with the date of removal and who the file is being sent to as a placeholder for the admin file

    2. update ACDS Notes field to identify the date the administrative file was returned to the ATE

    3. use Form 3210 to transmit the file if ATE is not co-located

    4. identify charged-out SND files as the Statutory Notice Issued Report is worked and follow-up actions taken as appropriate

8.20.6.9.7  (10-01-2014)
Reconsideration of "Appeals Issued" Statutory Notice of Deficiency During Suspense Period (8.2.2.5)

  1. If the Appeals Team Manager (ATM) or Appeals Area Director decides to grant further consideration of a case in the suspense period, reactivate the case. When notified the case is being reconsidered APS will:

    1. Remove the administrative file from suspense and give it to the ATE

    2. Place a "chargeout" in the file where the administrative file is removed

    3. Document the "chargeout" with the name of the case, the ATE, and the date the action is taken

    4. Indicate in the Notes section of ACDS that the case has been returned to the ATE for reconsideration

    5. Form 3210, Document Transmittal must be used whenever transmitting taxpayer information

  2. If no agreement is reached after consideration or reconsideration in the suspense period:

    1. Ensure there is an approved informal memorandum and a signed closing letter for the unagreed case

    2. Date the memorandum

    3. Date and mail the closing letter

    4. Indicate in the Notes section of ACDS that the case has been returned to APS for SND Suspense

    5. File the original memorandum and copy of the closing letter in the administrative file

    6. Re-file the administrative file behind "Letter Issued-Awaiting Taxpayer’s Action File" and remove the charge out slip

8.20.6.9.8  (10-01-2014)
Tax Court Petition Filed During the "Appeals Issued" Statutory Notice of Deficiency Suspense Period (8.2.2.8)

  1. If the taxpayer files a petition with the Tax Court:

    • Verify that both taxpayers signed the petition for a SND issued to married filing joint taxpayers

    • If both taxpayers are not included on the petition, see IRM 8.20.6.9.10.1, Non-Petitioning Spouse in "Appeals Issued" Statutory Notice of Deficiency

    • Verify that all tax periods are included for a petition filed in response to a multi-year SND

    • If all SND tax periods are not included in the petition, see IRM 8.20.6.9.10.3, Non-Petitioned Year in an "Appeals Issued" Statutory Notice of Deficiency for special handling and processing procedures

    • Remove the administrative file from "Letter Issued-Awaiting Taxpayers’ Action File"

  2. Forward the administrative file to Counsel for Answer.

  3. Form 3210, Document Transmittal must be used whenever transmitting taxpayer information.

  4. Update AIMS to status 82. The docketed alpha code "QQ" is automatically generated on AIMS using the MMQQYYYY format (positions 15–20) when the status is changed to 82.

  5. Update ACDS case/returns screen as follows:

    1. DKTNO = docket number

    2. CLOSINGCD = 43

    3. DATECLSD = date case sent to Counsel

    4. ACTION = DCJUR

    5. TODATE = date case sent to Counsel

    6. DC Office = Counsel Office code

    7. ATTORNEY = name of attorney

    8. Notice of Deficiency Statute Date STATDATE= do not delete entry

    9. Determination Letter Statute Date STATDATE= do not delete entry

    10. Statute CODE = DOCKT for each tax period identified on the petition

    11. Close DIMS

  6. Since Appeals already attempted settlement and issued a notice of deficiency when an agreement could not be reached, the administrative file is retained by Counsel for settlement attempts or preparation for trial.

  7. If Counsel answers the petition and returns the administrative file to Appeals for a second attempt at settlement, input Closing Code 42 on ACDS to put the case/record back in Part 2 of the assigned employees' inventory.

8.20.6.9.9  (10-01-2014)
Disposition of "Appeals Issued" Statutory Notice of Deficiency (SND) Cases (8.2.2.9)

  1. After a SND is issued on a case, disposition occurs in one of the following ways:

    IF THEN
    the taxpayer agrees to the deficiency within the 90-day (150-day) period by signing the appropriate agreement form, the case is forwarded for assessment action under Form 5402Appeals Transmittal and Case Memorandum.
    the taxpayer fails to file the petition with the United States Tax Court within the prescribed period, the case is forwarded for default assessment action under Form 5402Appeals Transmittal and Case Memorandum.
    the taxpayer enters into agreement under IRC 6212(d) to rescind the Notice of Deficiency follow procedures in IRM 8.20.6.9.12.
    the taxpayer files a timely petition and the case becomes docketed in the Tax Court the entire administrative file is transmitted to Counsel for preparation of pleadings and trial preparation.

    Caution:

    To ensure ASED accuracy and protection, always review the TLCATS and information provided by Counsel or DIMS to verify the following items:
    All tax periods listed on the SND are included
    Both taxpayers names and their signatures if the SND was issued on a MFT 30 Married Filing Joint (MFJ) account
    Consult with the Counsel Attorney to address any discrepancy or omission and document the discussion and resolution in the PEAS CAR

8.20.6.9.10  (10-01-2014)
Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Appeals-Issued SND" (8.2.2.12)

  1. APS is responsible for issuing, monitoring and controlling "Appeals issued" SND's.

  2. When a SND is issued on a MFT 30 Married Filing Joint (MFJ) account, the Primary TP and Secondary TP are treated individually for the purpose of legally signing a waiver of agreement, legally petitioning the United States Tax Court (USTC), or taking no action prior to the SND Default Date.

    If And Then
    only one TP (TPH or TPW) signs the SND Waiver of Agreement, the other TP does not sign the same Waiver of Agreement create an MFT 31 Account for the TP who agreed and assess the full amount of the SND.
    The TP who did not agree is kept in SND Suspense until the earlier of:
    • SND Default Date,

    • receipt of SND Waiver signed by the previously unagreed TP,

    • petition of SND by previously unagreed TP.

    only one TP on a MFJ MFT 30 SND filed a Petition to USTC, the other TP is not included as a Petitioner, after consulting with the Counsel Attorney, prepare a Dummy File for the Non-Petitioning Spouse (NPS).
    Update ACDS and AIMS according to IRM 8.20.6.9.10.2, ACDS and AIMS Updates on Appeals Issued SND Non-Petitioning Spouse (8.2.2.13).
    Continue suspense of the dummy NPS file.
    Forward the PS administrative file to Counsel for Answer.
    one or more Tax Periods on a Multi-Year SND are not included on the Petition, Counsel verifies that the Petition does not cover all tax periods, after consulting with the Counsel Attorney, prepare a Dummy File for the Non-Petitioned Year(s) (NPY).
    Update ACDS and AIMS as appropriate.
    Continue suspense of the dummy NPY.
    Forward the petitioned year(s) and the administrative file to Counsel for Answer.

    Note:

    Document which tax periods are not included in the petition for Counsels' information.

  3. When the resolution of the SND for the joint taxpayers, or for multiple tax periods included within the same SND is split due to the following actions:

    • One Petitioning Spouse/One Non-Petitioning Spouse

    • One or more Tax Periods are omitted from the Petition

    • Waiver of Agreement received from one spouse but not the other

    • Waiver of Agreement to one of the SND tax periods but not the other

    • Waivers from each TP received with different agreement dates

    • One Spouse signs the Waiver of Agreement and the other Spouse Defaults

    • Each Spouse files a separate Petition

    APS must take additional actions to ensure protection of the ASED for all taxpayers and all tax periods included on the SND.

  4. APS TE's must document their actions within their PEAS Case Activity Record (CAR).

  5. See IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31), for additional information on processing Split Spousal Assessments on MFT 31.

  6. See IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts for additional information.

8.20.6.9.10.1  (10-01-2014)
Non-Petitioning Spouse in "Appeals-Issued" Statutory Notice of Deficiency

  1. When a Statutory Notice of Deficiency (SND) is issued against a proposed joint deficiency and only one spouse petitions the United States Tax Court (USTC), and the other spouse agrees or does not take any action (defaults), the case is considered a "petitioning/non-petitioning spouse" (PS/NPS) case.

  2. If only one spouse petitions (confirm with Counsel), several additional steps must be taken:

    1. Prepare a "dummy file" for continued suspense of the NPS SND

    2. Update ACDS to create a Petitioning Spouse (PS) MFT 31 record and a Non-Petitioning Spouse (NPS) MFT 31 record

    3. See IRM 8.20.5.5.5 , Non-Petitioning Spouse Cases (8.4.1.9) for ACDS record update procedures

    4. Create the NPS MFT 31 Account on IDRS
      Use CC: REQ77/FRM77 to input TC 971, Action Code 103, XREF TIN = NPS TIN to the MFT 30 account

    5. Do not create an MFT 31 Account for the PS because the need for the MFT 31 account cannot be determined until the Docketed Case for the petitioning spouse is resolved

    6. Provide the petitioned case to Counsel for their Answer to the petition

    7. Continue to monitor the NPS SND suspense until receipt of an agreement or a separate petition, or the SND default date

  3. If the NPS submits a separate petition, update ACDS and forward the NPS dummy file to Counsel for association with the related petitioned case.

  4. If the NPS SND becomes either agreed or defaulted, APS must take the action to ensure timely assessment of the SND on the NPS MFT 31 account.

  5. Prepare Form 5403, as described below and input the MFT 31 Account Adjustment:

    1. Check box "AMCLSS" at the top of Form 5403

    2. TIN = TIN of primary taxpayer on the joint account

    3. MFT = 30

    4. Item 12 - Enter total tax and penalty to be assessed against the non-petitioning spouse

      Note:

      On the MFT 31 account, the TC 300 will generate a TC 470, which will withhold collection.

      Reminder:

      Any TC 470 posted after July 6, 1990 will automatically reverse at 15 cycles or 9 cycles with no control base. To manually reverse the TC 470 prior to the automatic reversal, input a TC 472 with no Closing Code.

    5. Item 14 is a required entry for AMCLSS and must reflect the correct ASED for the MFT 31 assessment

    6. Item 56 - Check PA if the primary SSN is the non-petitioning spouse

    7. Item 56 - Check SA if the secondary TIN is the non-petitioning spouse - this will cause the assessment to post to the MFT 31 account created for the secondary TIN

      Note:

      If Item 56 is checked for SA, you must also enter Item 57 with the Spouse's 4 Alpha Character Name Control when inputting Command Code AMCLSS entries or AMCLS will return a reject message "ITEM 57 REQUIRED WHEN ITEM 56 EQUALS SA OR SE" . (Item 57 is included on the current revision of Form 5403, (Rev. 10/2014).

    8. Items 16, 20, 802–811, 39, and 42 - Make no entries

    9. Make a copy of the face of the return and associate it with the Form 5403 to be sent to campus files as the source document for the adjustment transaction

    10. Place the case in PEAS Suspense for monitoring of the MFT 31 adjustments

    11. Upon verification of the MFT 31 adjustment posting, forward the NPS dummy file and assessment verification to Counsel for association with the docketed case

      Note:

      If the case is being transferred because a change in place of trial has been granted, the transferring office is responsible for processing the interim assessment against the non-petitioning spouse.

  6. For some deceased taxpayers and those with a temporary SSN, make the non-petitioning spouse assessment on non-master file using MFT 20. The MFT must also be updated to 20 on ACDS.

  7. See IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31), for additional information.

  8. See IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts for additional information.

8.20.6.9.10.2  (10-01-2014)
ACDS and AIMS Updates on Non-Petitioning Spouse SND Cases (8.2.2.13)

  1. When a SND issued on an MFT 30 Married Filing Joint (FS = 2) return and only one spouse files a petition, the ACDS record for the MFT 30 account, must be updated to include an MFT 31 for the petitioning spouse, and an MFT 31 for the non-petitioning spouse.

    • MFT 30 Joint Return (this is the key case)

    • MFT 31 Petitioning Spouse (PS)

    • MFT 31 Non-Petitioning Spouse (NPS)

    Note:

    These instructions only apply to statutory notices of deficiency issued on an MFT 30 FS 2.

    Reminder:

    A non-petitioning spouse workunit is not created for CDP determination cases if only one spouse petitions because the tax is already assessed so MFT 31 procedures do not apply to CDP cases.

  2. ACDS field entries for MFT 31 ACDS records are provided in IRM 8.20.5.5.5.1, Non-Petitioning Spouse Carding.

  3. Update the MFT 30 Joint Return ACDS Record as follows:

    • FEATRCD - Enter NS

    • DKTNO - Enter Docket Number as it appears on the docket listing

  4. Update the Returns Screen on the MFT 30 Joint Return:

    1. AIMS indicator - Enter "Y"
      Appeals-Issued SNDs will already have AIMS controls established however, the AIMS Status 80 "Non-Docketed" must be updated to AIMS Status 82 "Docketed" via CC: AMSTUB.
      Compliance-issued SNDs must have AIMS controls established before the case is forwarded to Appeals. If AIMS controls are not established by the originating Compliance function, the APS DIMS Team submits an encrypted email request to the appropriate contact person.

    2. STATDATE - Enter the actual statute date of the joint return which results from the status of the non-petitioning spouse. This will reflect the most conservative ASED until such time as the NPS SND is agreed, defaults, or also becomes docketed.

    3. CODE - "NPS"

    4. Upon resolution of the Non-Petitioning Spouse (NPS) SND, the ACDS record for the MFT 30 Joint Account, and the MFT 31 NPS Account must be updated as described in (4) below.

  5. Upon verification of the NPS MFT 31 assessment posting, update the MFT 30 ACDS record as follows:

    • STATDATE = blank

    • CODE = DOCKT

    • NOTES = NPS MFT 31 Assessment 23C = MM-DD-YYYY

  6. Upon verification of the NPS MFT 31 assessment posting, update the MFT 31 NPS ACDS record as follows:

    • STATDATE = blank

    • CODE = ASESD

    • NOTES = NPS MFT 31 Assessment 23C = MM-DD-YYYY

  7. After verifying the MFT 31 assessment has posted, the APS TE must close the IDRS Control Base opened under their IDRS number on the NPS MFT 31 account to allow systemic reversal of the TC 470.

  8. The MFT 31 account TC 470 will automatically reverse in 9 or 15 cycles to resume collection activity. APS will no longer enter CSED information on the MFT 31 NPS ACDS record.

8.20.6.9.10.3  (10-01-2014)
Non-Petitioned Year in an "Appeals-Issued" Statutory Notice of Deficiency

  1. Oftentimes, a notice of deficiency (SND) is issued for multiple tax periods. Occasionally, one or more of the tax periods may not be included on the petition. These cases are considered "Non-Petitioned Year" , (NPY) cases.

  2. If one or more tax periods are missing from the petition, confirm with Counsel, before taking action to set up a "Dummy File" for the NPY and separating the non-petitioned tax periods from the ones included on the petition.

  3. If Counsel verifies that the petition excludes one or more tax periods, then follow the procedures in IRM 8.20.6.9.10, see table.

    Note:

    Verify if the Counsel Attorney wants the NPY re-charged to them for association with the petitioned case, after conclusion of the SND suspense and APS processing actions, or if once the NPY is agreed or defaulted, those years should be sent to Campus files.

  4. Upon receipt of an agreement for the NPY, update ACDS and process the assessment using normal agreed SND procedures.

  5. Upon expiration of the SND for the NPY in suspense, update ACDS and process the assessment using normal SND Default procedures.

  6. Ensure the NPY is re-charged to the Counsel Attorney if requested, otherwise send to Campus Files using normal procedures.

  7. The APS TE must always document their PEAS Case Activity Record (CAR) to identify special actions or decisions which guide case movement and case actions.

8.20.6.9.11  (10-01-2014)
Defaulted "Appeals-Issued" Statutory Notice of Deficiency (8.2.2.15)

  1. If the taxpayer(s) does not sign and submit the waiver (Agreement), or does not file a timely petition with the tax court, the case is removed from SND Suspense on the Default Date.

  2. The Default Date is calculated by adding 30 days to the last day to file a petition date. For taxpayer's with a U.S. Address, the Default Date is 90+30=120 days from the SND Issuance Date. For taxpayer's with an address outside of the U.S., the Default Date is 150 + 30 =180 days from the SND Issuance Date.

  3. Check the Statutory Notice Report for any case where Appeals issued the statutory notice of deficiency. Also check for any case on which Appeals accepted jurisdiction from Compliance during the 90-day period.

  4. Update ACDS using general closing instructions. In addition input the following:

    1. CLOSINGCD - 05

    2. ACTION - ACKCLS

    3. STATDATE - newly computed statute date

      Note:

      See IRM Exhibit 8.20.7-1Form 5403, Appeals Closing Record (Instructions) ITEM 14-STATUTE EXTENDED TO DATE (MMDDYYYY FORMAT) and IRM 8.21.2Account and Processing Support (APS) Statute Responsibility for additional guidance.

    4. RevsdTax/Pen/Claim - enter the amounts from the notice of deficiency

  5. Prepare Form 5403 for assessment.

8.20.6.9.11.1  (10-01-2014)
Disposition of Agreed or Defaulted "Appeals-issued" 90-Day Cases Involving Claims (8.2.2.15.1)

  1. When an Appeals case includes both a Claim year and a Deficiency year on which a Statutory Notice will be issued, the ATE may prepare a Claim Disallowance Letter prior to submitting the case to APS for issuance of the SND.

  2. APS will NOT date or issue the Claim Disallowance Letter, but will affix it inside the front of the suspensed SND case.

  3. If, in response to the statutory notice of deficiency, the taxpayer submits an agreement or fails to file a petition within the time provided, the notice of claim disallowance will be issued when the case is processed for assessment of the SND.

8.20.6.9.12  (10-01-2014)
Rescinded "Appeals-issued" Notice of Deficiency Under Rev. Proc. 98-54 (8.2.2.14)

  1. In the event Appeals rescinds an Appeals-issued 90-Day Statutory Notice per Form 8626, Agreement to Rescind Notice of Deficiency, update ACDS as follows:

    1. Remove 090A or 150A from SNTYPE field

    2. Remove date from SNDATE field

    3. Enter "SND rescinded (date signed by Commissioner)" in NOTE field

    4. Change Y to N in SND field

  2. If Form 872 or Form 872-A was also completed in conjunction with Form 8626, Agreement to Rescind Notice of Deficiency update the STATDATE or statute CODE as appropriate on ACDS and AIMS.

8.20.6.10  (10-01-2014)
Statutory Notice of Deficiency (SND) Issued by Compliance - Premature Default/Assessment (8.4.1.7.2)

  1. Various Compliance functions issue and suspense SNDs. These functions monitor the Docket Information Management System (DIMS) prior to taking default action, to ensure all "suspensed" SND cases, when Petitioned, are timely forwarded to Appeals and the AIMS Status updated via CC: AMCLS.

  2. On occasion, source functions default and/or prematurely assess a petitioned case. In this instance additional steps must be taken by both the originating Compliance function and Appeals:

    • Secure a "Dummy File" to provide to Counsel for preparation of the ANSWER

    • Retrieve the original administrative file

    • Establish AIMS controls, or correct the AIMS Status to 81

    • Correct the taxpayer's account in the event a premature assessment has been processed

  3. Appeals Account and Processing Support (APS) Docket Information Management System (DIMS) Team monitors the Electronic Docket Listing (EDL) and coordinates with the Compliance function to secure the administrative files that have not been received in Appeals timely.

  4. IRM 4.8.9.25.6, Unlocatable Case Files provides guidance for Compliance Technical Services (CTS) to take when a "Petitioned SND" has been defaulted from SND suspense and shipped to Compliance Case Processing (CCP) for assessment.

    • When the file is not received timely by Appeals, the APS DIMS team will identify the case as aging on the DIMS Listing and will contact Compliance Technical Services (CTS) to request the file.

    • CTS will take the necessary actions to ensure the return of the original administrative file from Compliance Case Processing (CCP) and will also create a "DUMMY FILE" which they will forward to the DIMS Team for ACDS Carding and transmission to the appropriate Counsel Office.

    • Upon return of the original administrative file from CCP, CTS will use AIMS CC: AMCLSE to process the case to the Appeals Office aligned with the designated Counsel Office.

    • Upon receipt of the original administrative file from CTS, APS will update ACDS to reflect the original administrative file has been received and forward the administrative file to the Counsel Attorney, or the ATE for association with the "DUMMY FILE" .

  5. IRM 8.20.5.5, General Carding Rules for Docketed Cases provides guidance for ACDS carding action for a Docketed Case.

  6. Three additional fields are now available in ACDS to track docketed case action dates:

    • Date DKTAD Skeletal

    • Date DKTAD Dummy

    • Date DKTAD Original

    See IRM 8.20.3, Account and Processing Support (APS), Appeals Centralized Database System (ACDS), for the ACDS field definitions.

  7. IRM 4.8.9.25.7, Status 90 Cases provides guidance for Compliance Technical Services (CTS) to take when a "petitioned SND" has been defaulted from SND suspense, Compliance Case Processing (CCP) has processed the assessment, and shipped the case to Campus Files.

    1. When the file is not received timely by Appeals, the APS DIMS team will identify the case as aging on the DIMS Listing and will contact CTS to request the file.

    2. CTS will prepare a "DUMMY FILE" and forward it to the DIMS Team for ACDS carding.

    3. DIMS will update ACDS and forward the "DUMMY FILE" to the appropriate Counsel Office.

    4. CTS will also input a STAUP (15 cycles) on all prematurely assessed tax periods to suppress balance due notices and collection activity resulting from the premature assessment.

    5. CTS will take all necessary action(s) to reestablish AIMS controls into the correct AIMS Status.

    6. DIMS will request the original administrative file be mailed to the appropriate APS Office from Campus Files via CC:ESTAB.

    7. DIMS will identify in ACDS Notes that an ESTAB has been input and transfer the ACDS record to the appropriate APS Office.

    8. APS has the responsibility to abate premature assessments and upon appropriate notification from Counsel or the ATE, APS will reverse the premature assessment and verify that a TC 520 CC 72 is posted to the taxpayer's account to establish the Master File Litigation Freeze "-W" on IDRS.

    9. Upon receipt of the original administrative file, APS will update ACDS to correct all applicable fields including the Statute Date and Statute Code as well as verify that AIMS controls are in the correct Status.

    10. APS will forward the administrative file to Counsel for association with the dummy file.

8.20.6.10.1  (10-01-2014)
Petitioning/Non-Petitioning Taxpayer, or Non-Petitioned Year(s) in Multiple Year "Compliance-Issued SND"

  1. Upon receipt of the administrative file from a Compliance function, where only one spouse is determined to have petitioned the USTC, APS will review the file for the following items and when TXMODA or AMDISA is not included, performs IDRS research to secure a current TXMODA and AMDISA:

    • Review the TXMODA to verify that the submitting function has input TC 971 AC 103 on the MFT 30 account for the NPS TIN

    • Review the AMDISA to verify that the submitting function has requested AIMS controls for the MFT 30 account, and updated AIMS to Appeals Status 81

    • Verify the file includes the original return, or acceptable documentation in the absence of an original return

    • Verify that CC: ESTAB either has been input by the originating function or take action to input CC: ESTAB if the administrative file has been prematurely released SND suspense.

  2. When a Statutory Notice of Deficiency is issued by a Compliance Function (not Appeals), on an MFT 30 Married Filing Joint (MFJ) account, and only one of the spouses files a petition with the United States Tax Court (USTC), the originating function must prepare a dummy file for the Non-Petitioning Spouse (NPS) for continued suspense under their jurisdiction.

  3. The originating function retains jurisdiction of the NPS SND until one of the following occurs for the NPS SND remaining in their suspense:

    • Non-Petitioning Spouse files a separate petition to the United States Tax Court (USTC)

    • Non-Petitioning Spouse submits a signed waiver of agreement for the SND

    • Non-Petitioning Spouse SND defaults

  4. If the NPS files a separate Petition to the USTC, the Compliance function will follow their existing procedures to transmit the NPS Dummy file to Appeals for assignment to the Counsel Attorney who has jurisdiction over the Petitioning Spouses' docketed case.

  5. If the NPS does not file a separate Petition, upon conclusion of the NPS SND suspense, either by signed waiver, or default, the Compliance function with jurisdiction for the NPS SND, will process the NPS MFT 31 assessment and forward the NPS assessment verification along with the NPS dummy file to APS.

  6. Upon receipt of the NPS Dummy file and NPS assessment verification, APS will update ACDS per the instructions provided in IRM 8.20.6.9.10.2, ACDS and AIMS Updates on Non-Petitioning Spouse SND Cases (8.2.2.13) and timely transmit the NPS Dummy file to Counsel for association with the Petitioning Spouses' docketed case under Counsel Jurisdiction.

  7. Although, Appeals has no jurisdictional authority over the NPS assessment or NPS Assessment Statute Expiration Date (ASED) on a Compliance-Issued SND, the APS PTM can authorize an MFT 31 protective assessment against the NPS for the tax and penalty amount identified on the "Compliance issued" SND under the following circumstances:

    1. An encrypted email is sent by the PTM to the originating Compliance SND function manager to request written verification that the Compliance function is controlling the ASED for the NPS - and no reply is received within 5 business days;

    2. The Counsel Attorney with jurisdiction for the Petitioning Spouse verifies in writing that the petition does not cover the NPS; and

    3. The ASED for the NPS assessment is within 90 days of expiring thus justifying the protective assessment action by Appeals.

  8. Upon written approval from the PTM for APS to make a protective assessment against the NPS MFT 31 account, APS will follow the procedures in IRM 8.20.6.9.10.1, Non-Petitioning Spouse in "Appeals Issued Statutory Notice of Deficiency" for processing the NPS MFT 31 protective assessment on the "Compliance issued " SND.

  9. APS will not initiate a MFT 31 protective assessment against the NPS for a "Compliance issued" SND under the following circumstances:

    • Compliance has already established the MFT 31 account and the SND assessment is pending

    • Compliance verifies in writing that they are controlling the ASED for the NPS and will forward the assessment verification to Appeals with the dummy file

    • Counsel confirms that the spouse is included on the petition

  10. If And Then
    Compliance issued the SND CTS has submitted the entire administrative file to Appeals including the Non-Petitioned Tax Period(s), APS must use secure email to notify the CTS Contact that one or more tax periods were not included on the petition.
    CTS has not retained the Non-Petitioned Tax Period(s) upon secure email notification from APS that there is one or more Non-Petitioned Tax Period(s), CTS verifies they still have AIMS Controls and a Dummy File for monitoring of the disposition of the SND and they will make the assessment if an agreement is received or the SND defaults for the Non-Petitioned Tax Period; APS must ensure ACDS properly contains only the Petitioned tax periods with their correct ASED and does not contain the Non-Petitioned Tax Periods remaining under Compliance Jurisdiction.
    APS must also include in the administrative file, a copy of the secure email exchange with Compliance to establish the responsible party for ASED protection purposes and notification to the Counsel Attorney as to why the petitioned case does not include all SND tax periods.
    CTS has not retained the Non-Petitioned Tax Period(s), upon secure email notification from APS that there is one or more Non-Petitioned Tax Period(s), Technical Services verifies that they mistakenly updated the AIMS Status for the Non-Petitioned Tax Periods and transmitted the Non-Petitioned Tax Returns to Appeals; APS must verify in writing that they will return the AIMS Controls to CTS and will transmit the Non-Petitioned Tax Periods back to CTS for their continued monitoring and suspense. neither Appeals, nor Counsel has jurisdiction of the Compliance Issued SND tax periods omitted from the petition.
    The ASED for the Non-Petitioned Tax Period(s) is the responsibility of the function with jurisdiction over the SND, in this example, the responsibility for protection of the ASED remains with CTS.
    APS must always consult with Counsel to alert them of the Non-Petitioned Year(s).
    At any time, it is determined that the ASED is at risk of expiring without a timely assessment being processed the APS PTM determines that a Quick Assessment must be processed to protect the ASED, the APS PTM will direct the APS TE to prepare a Quick Assessment and submit it for processing prior to the ASED.
    Statute Protection is APS Highest Priority
    Once the ASED is protected the complete DLN is assigned to the assessment, if the status of the previously Non-Petitioned Tax Period changes to Agreed, or Petitioned, APS will coordinate with CTS and/or Counsel to determine if additional adjustments to the account are required.
  11. APS TE's must document their actions within their PEAS Case Activity Record (CAR).

  12. For a list of AIMS/ERCS contacts see, AIMS/ERCS Contacts.

  13. For a list of Statutory Notices of Deficiency - Exam Technical Services see, Statutory Notices of Deficiency - Exam Technical Services .

  14. For a list of Automated Underreporter Contacts see, Automated Underreporter Contacts by TC 922 DLN.

  15. For a list of IMF AUR Coordinators see, AUR Coordinators.

  16. For a list of BMF AUR Coordinators see, The Ogden Campus Automated Underreporter (AUR) Operations Compliance Functional Liaisons.

  17. See IRM 21.6.8, Individual Tax Returns, Split Spousal Assessments (MFT 31), for additional information on processing Split Spousal Assessments on MFT 31.

  18. See IRM 3.17.46.5.7.2, Non-Petitioning and Petitioning Spouse Accounts for additional information.

8.20.6.10.2  (10-01-2014)
Statutory Notices Issued by Compliance - Counsel Returns Dummy File After Answer for Appeals Consideration (8.4.1.8.4)

  1. If no administrative file is received and Counsel answers the petition using the dummy file documents, then Counsel will include a copy of the petition, answer, Designation of Place of Trial, and any other pertinent information from the legal file, within the dummy file.

  2. Counsel will then send the dummy file for consideration DIRECTLY to the Appeals office and ATM identified in the orange Cover Sheet APS previously placed on top of the dummy file.

8.20.6.11  (10-01-2014)
Docketed Case Settled by Appeals - STIPFF (8.4.1.23)

  1. After the Appeals office secures signed decision documents they forward the STIP Package to Field Counsel.

  2. The STIP Package includes the following documents:

    1. Two signed decision documents with original signatures for filing with the Tax Court

    2. Approved Form 5402, Appeals Transmittal and Case Memo

    3. Appeals Case Memo (ACM), if prepared in addition to Form 5402

    4. Settlement computation

  3. STIPFF is an Action Code on ACDS that means "STIP for filing" . When Appeals settles a docketed case, Appeals forwards a STIP Package to Counsel for entry of the Decision, and retains the administrative file. The process of controlling the retained administrative file is referred to as STIPFF. These procedures apply to Field and Campus APS.

  4. APS will verify that the admin file includes all returns listed on the Form 3210 and controlled on ACDS.

    STIPFF - Admin File Retained in Appeals
    If And Then
    ATM/ATE forwards STIP Package to Counsel sends Administrative File to APS for STIPFF, APS will:
    • Acknowledge the Form 3210

    • Update ACDS:

      1. ACTION = STIPFF

      2. TODATE = Date ATM mailed STIP Package

    • Place the administrative file in STIPFF Suspense in alphabetical order

    ATM/ATE associates STIP Package with administrative file sends both the STIP Package and the administrative file to APS, APS will:
    • Acknowledge the Form 3210

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

    • Update ACDS as shown below and then place the administrative file in STIPFF suspense in alphabetical order


    Update ACDS:
    1. ACTION = STIPFF

    2. TODATE = Date APS mails STIP Package

  5. Rarely, Counsel will request both the admin file and STIP package.

    STIPFF Process - Admin File Sent to Counsel
    If And Then
    Counsel requests both the STIPFF package and the administrative file the ATM/ATE sends both items 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 = STIPFF

    2. TODATE = Date ATM/ATE sent both the STIP Package and Admin. File to Counsel

    3. LACTION = AFINCXXX. AFINC = Admin File in Counsel, XXX = Counsel Office Initials

      Example:

      Phoenix Counsel = PHX

    Counsel requests both the STIPFF package and the administrative file the ATM/ATE sends both items to APS for processing to Counsel. APS will:
    • Acknowledge the Form 3210

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


    Update ACDS:
    1. ACTION = STIPFF

    2. TODATE = Date ATM/ATE sent both the STIP Package and Admin. File to Counsel

    3. LACTION = AFINCXXX. AFINC = Admin File in Counsel, XXX = Counsel Office Initials

      Example:

      Phoenix Counsel = PHX

8.20.6.12  (10-01-2014)
Docketed Case Settled by Appeals, Counsel Prepares the STIP - PREPSTIP

  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.

8.20.6.13  (10-01-2014)
Docketed Case Not Settled by Appeals - Jurisdiction Released to Counsel DCJUR (8.4.1.24)

  1. When Appeals concludes docketed case consideration without settlement, Appeals forwards the case to Counsel. Ordinarily a settlement computation is not required in an unagreed docketed case, however, if the ATE concedes an issue, a settlement computation might be necessary.

  2. When APS receives the administrative file with an approved Form 5402 releasing jurisdiction, APS will take the following actions:

    1. Examine the file to ensure that all returns, documents, and other papers are included in the folder

    2. Date Form 5402 in the upper right corner

    3. Date and mail the letter addressed to the petitioner or representative advising that jurisdiction has been released to Counsel

    4. Place a copy of the letter, Form 5402, and the ACM in the administrative file

  3. Enter CLOSINGCD 43 which moves the case from Part 2 to Part 3 Status E/T.

  4. When a case moves from Part 2 to Part 3, it shows in the ATE's inventory as suspense status "E/T" .

  5. Entry of CLOSINGCD 43 updates ACDS Action Code to DCJUR.

  6. TODATE = the date administrative file sent to Counsel.

  7. Transmit the administrative file to Counsel. If Form 2828, Transmittal Memo is used, establish a follow-up "tickler" control until Counsel acknowledges receipt of the administrative file.

  8. When Counsel returns the administrative file for final closing, verify the file received includes all returns, and forms required for closing the case. Documents should be in chronological order with the most recently dated documents on top.

  9. If the category on ACDS is IC (Industry Case), CIC (Coordinated Industry Case), or the case is an Estate and Gift Tax case, notify the PTM that an APS-CIT Request Form must be prepared and submitted to the *APS Complex Interest mailbox for assignment of an APS-CIT TE to process the entered decision or entered order and ACDS closing. Upon response from the *APS Complex Interest identifying the APS-CIT TE assignment, the case will be sent to the APS-CIT TE at the address provided.

  10. On a monthly basis, the APS Reports Team will run the DCJUR follow-up list to determine whether Counsel has returned the administrative file.

8.20.6.14  (10-01-2014)
Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel (8.4.1.28)

  1. Counsel and Appeals may agree jurisdiction will be returned to Appeals for settlement in a docketed case with strong likelihood of settlement for all or part of the case.

  2. If a Campus Appeals office forwards a case to Field Counsel for "trial preparation" and, subsequently, the Petitioner or Counsel of Record wish to discuss "settlement" , presents new information or decides to settle based upon Appeals' settlement offer, Field Counsel may return case jurisdiction to Campus Appeals when all agree there is a strong possibility of settlement and the case is not on a Tax Court calendar.

  3. If the case is on a Tax Court calendar, Field Counsel may return the case to Field Appeals for reconsideration.

  4. If Counsel returns the case to Appeals for reconsideration, Appeals will accept jurisdiction of the case and the following administrative actions will be taken:

    1. APS will update the case from Part 3 to Part 2 on ACDS with input of Closing Code 42.

    2. If Counsel returns the case directly to the ATE/ATM, they must submit and ACDS Update Request to their servicing APS Team to update ACDS Closing Code to 42 which will auto-populate the FROMDATE for the DCJUR action.

    3. If an AC/FR was previously input on the Case Activity Record (CAR), the ATM will input **RR to reflect the case is returned to the assigned technical employee. This will change the prior AC/FR to MS. Or, if the case needs to be reassigned to a different technical employee, the ATM will reassign and input **RR on the CAR.

    4. After reconsideration, the ATE will input AC/FR and submit the case to the ATM.

    5. The ATM will input a revised ACAPDATE and submit to APS for closing.

  5. When the case is in Counsel's jurisdiction, it is in Part 3 on ACDS. When the case is returned to Appeals for reconsideration, APS inputs Closing Code 42 and a date closed equal to the date the case is received for reconsideration. This changes the "Part" on the open ACDS record from 3 to 2. The closed ACDS record retains Part 3 and the closing information.

  6. The following procedures are followed by APS when processing the returned workunits:

    1. Select the Special Activities Menu in ACDS, then select Closing Code 42/43 update

    2. CLOSINGCD = 42

    3. DATECLSD = today's date

    4. FROMDATE = date case returned from Counsel

    5. Entering the FROMDATE will automatically remove the case from the DCJUR follow-up list

8.20.6.15  (09-11-2013)
United States Tax Court Calendars for Trial Sessions (8.4.1.25)

  1. The United States Tax Court (Tax Court) regularly issues calendars for trial sessions. The calendars list petitioner(s) names, case docket numbers, trial session date and location (city and state). A trial session’s calendar also lists cases in which motions are calendared for hearing at a trial session.

  2. The Tax Court posts all session schedules to its web site, http://www.ustaxcourt.gov.

  3. Tax Court judges sometimes issue orders requesting specific actions by the IRS that may impact Counsel/Appeals calendar time frames or document submissions. Appeals employees should pay particular attention to the requirements of any orders of this nature issued by a Tax Court judge.

8.20.6.15.1  (10-01-2014)
ACDS Tax Court Calendar Program (TAXCAL) (8.4.1.25.2)

  1. The Tax Court Calendar program (TAXCAL) is a sub-system of ACDS developed and maintained by Appeals.

  2. The ACDS Tax Court Calendar (TAXCAL) program provides Appeals offices with a method to identify and monitor Tax Court Calendar cases and generate Tax Court Calendar reports within ACDS.

  3. As soon as a calendar is established, Counsel provides Appeals with an electronic file for each Tax Court Calendar to upload into TAXCAL. Fresno APS is responsible for uploading all Tax Court Calendars onto TAXCAL.

  4. The ACDS Tax Court Calendar functionality is menu based and user-friendly. Based upon the permissions of the user, the program allows appropriate functionality.

  5. The ACDS permissions levels for Tax Calendar are as follows:

    1. (14000) Tax Calendar

    2. (14100) Tax Calendar, User

    3. (14200) Tax Calendar, Coordinator

    4. (14300) Import Electronic Calendar - restricted permission

  6. ACDS web-based technology allows the program to match a docket number to any case on ACDS, in any Appeals office.

  7. A calendared case input on a Tax Court calendar created in any Appeals office will appear on the appropriate group's or ATE's report.

  8. The TAXCAL program provides the following functionality:

    • Electronically import or manually create an ACDS Tax Court Calendar

    • Match a calendar case to an ACDS case

    • Provide a status report for Counsel

    • Notify the assigned ATE when the case appears on a calendar

    • Link on the TAXCAL record to e-mail the calendar coordinator or assigned ATE

    • Add comments to the TAXCAL record

  9. Tax Court Calendar actions are the responsibility of both the Field Appeals and Campus Appeals ATEs for their assigned cases.

  10. A TAXCAL report listing all Dockets on the calendar in Docket Number order should be generated by the Field Appeals office and faxed to the Field Counsel responsible for the calendar within five business days of receipt of the calendar. This list shows the name of the ATE assigned to the case and if the case is unassigned or unmatched. The designated Field Appeals ATM is responsible for resolving unassigned or unmatched cases.

  11. Appeals provides Field Counsel with periodic calendar status reports. The designated Appeals ATM responsible for the calendar generates the report monthly. These calendar status reports are generated from TAXCAL and provide the following information:

    • Name of the docketed case

    • TIN of the docketed case

    • Docket number

    • Name of the ATE assigned the case, if assigned

    • Attorney/paralegal assigned to the case as shown on ACDS

    • Closing code and date closed, if applicable

    • "Status" of the case

  12. The report is forwarded to each Field Counsel responsible for the calendar. Field Counsel updates the list with the name of the attorney/paralegal assigned to the case within two workdays from the date of receipt of the list. Field Counsel delivers or faxes the list back to the Appeals office responsible for the calendar so that the ACDS database can be updated with the corrections. Subsequent lists contain those corrections.

  13. The TAXCAL Users' Manual is posted on the Appeals web site on the ACDS page.

8.20.6.16  (09-11-2013)
DECENT and ORDENT Procedures (8.4.2.8) & (8.4.1.29)

  1. Upon receipt of a TLCATS Listing indicating a "Decision" or "Order" was entered by the Tax Court, the APS Reports Team researches ACDS for all cases listed on the TLCATS document with a Decision/Order entered date.

    IF the case THEN
    is found on ACDS the APS Reports Team will promptly update the following fields in ACDS:
    ACTION - either DECENT or ORDENT
    TODATE - the date the Decision/Order was entered
    Statute - ACDS will calculate the "DECENT" STATUTE DATE at 150 days from the ACTION TODATE and will populate the STATUTE CODE with 150DAY.
    Promptly fax notification of the Decision/Order entered to the appropriate APS office for assessment action.
    is NOT found on ACDS the APS Reports Team will:
    Establish controls on ACDS to ensure statute protection.

8.20.6.17  (09-11-2013)
Dismissed Cases (Entered Orders) (8.4.1.30)

  1. A distinction must be made between cases dismissed for lack of jurisdiction and cases dismissed for lack of prosecution.

  2. A dismissal for lack of jurisdiction is not a determination on the merits, and the Order of Dismissal does not reflect a deficiency amount.

  3. A dismissal for lack of prosecution is considered to be a final determination on the merits, and the Order of Dismissal includes a deficiency amount.

8.20.6.17.1  (10-01-2014)
Entered Order to Dismiss for Lack of Jurisdiction (8.4.1.30.1)

  1. The Tax Court may dismiss a case for lack of jurisdiction for a variety of reasons such as:

    1. The petition was not filed on or before the 90th/150th day for filing a timely petition

    2. The petitioner did not pay the filing fee

    3. The petition was filed by an unauthorized representative of the deceased person (Estate Tax)

    4. The petition was filed in violation of the Bankruptcy Code Stay Provision

    5. A notice of deficiency or notice of determination was not issued for the tax period(s) identified on the petition

    6. A notice of deficiency was not issued to the taxpayer

    7. A notice of deficiency was not sent to the taxpayer's last known address (see (2) below)

  2. Generally a Tax Court dismissal for lack of jurisdiction does not favor the taxpayer, however, the dismissal can be based on circumstances that do favor the taxpayer. For example, a deficiency notice may be determined to be invalid because it was not sent to the taxpayer's last known address. The Tax Court lacks jurisdiction over a case that is based upon an invalid notice.

    1. When the USTC determines that the Statutory Notice of Deficiency was not sent to the taxpayer's last know address, the Appeals Team Manager (ATM) will determine if the ASED is still open or not.

    2. If the assessment statute of limitation is still open, the ATM may request that the ATE prepare and re-issue the statutory notice of deficiency to the correct address.

    3. If the statute of limitation is not open, the ATM will follow barred statute procedures.

  3. When that taxpayer submits a petition in response to a CDP/EH decision letter, 30 day letter, or some other letter that does not contain Tax Court rights, the administrative file or a dummy file may not be needed. APS will:

    • Contact the Counsel attorney to confirm that they plan to dismiss the case and identify if they require the administrative file or dummy file.

    • If Appeals had the case as a non-docketed case and the original WUNO is already closed:
      a - Create a New WUNO - skeletal record on ACDS
      b - Cross-reference the original WUNO in the Notes field
      c - Add a note "TP petitioned erroneously, original admin closed, no dummy file needed"
      d - Leave the case on AOC 93's database until the dismissal is entered
      e - Close ACDS with CC 21 upon receipt of the dismissal

    • If there is no previous ACDS record for the taxpayer:
      a - Create a skeletal record on ACDS
      b - Add a note "TP petitioned erroneously, original admin file closed, no dummy file needed"
      c - Close ACDS with CC 21 upon receipt of the dismissal

  4. Each Appeals office designates an Appeals Technical Employee (ATE) who is responsible for review of dismissed cases prior to assessment.

  5. See IRM 8.20.7.21.2, Dismissed for Lack of Jurisdiction Case Closing (8.4.1.30.4) for additional information.

8.20.6.17.2  (10-01-2014)
Entered Order to Dismiss for Lack of Prosecution (8.4.1.30.2)

  1. Appeals gives no further consideration to cases that are dismissed by the Tax Court for lack of prosecution.

  2. APS must review the Tax Court Dismissal to identify if adjustments to the taxpayer's account are necessary and take appropriate action to ensure ACDS, AIMS, and IDRS are updated in compliance with the dismissal order.

  3. See IRM 8.20.7.21.4, Dismissed for Lack of Prosecution Case Closing (8.4.1.30.5) for additional information.

8.20.6.17.3  (10-01-2014)
Entered Decision/Order is Vacated (8.4.1.30.6)

  1. In the very rare circumstance when an entered decision/order is vacated by the court, the entered decision/order which was vacated is no longer in effect.

  2. When APS becomes aware of a vacated Decision/Order, APS will:

    1. Verify with the Counsel Attorney that the entered Decision/Order has been vacated

    2. Update ACDS from PEAS to remove the Action Code DECENT or ORDENT and replace it with DCJUR

    3. Use the date the entered Decision/Order was Vacated as the TODATE

    4. Add a Note: "Decision/Order Entered MM/DD/YYYY Vacated on MM/DD/YYYY"

  3. If the case is returned by Counsel for further Appeals consideration, update ACDS following the procedures in IRM 8.20.6.14 (6), Docketed Reconsideration Cases (Closing Code 42) - Jurisdiction Returned to Appeals by Counsel (8.4.1.28).

  4. If Counsel does not return the case for further Appeals consideration, but instead sends the case to APS for processing of a new Entered Decision/Order, APS will follow appropriate Docketed case closing procedures in IRM 8.20.7.

8.20.6.18  (10-01-2014)
Appeal of Tax Court Decision (8.4.1.31)

  1. A Tax Court decision in a regular case can be appealed by either the petitioner or the U.S. Government. Counsel holds tried case files for 90 days after the Tax Court decision is entered. The Entered Decision will not include a waiver paragraph on these cases so when the assessment is made, APS will not include an entry in the Form 5403 Item 08 Agreement Date. Follow the procedures below if an appeal is filed within the 90-day period.

8.20.6.18.1  (09-11-2013)
Assessment of Deficiency Determined by the Tax Court When an Appeals of the Tax Court Decision is Pending (8.4.1.31.1)

  1. If the case goes to the Court of Appeals (Appellate Court), the deficiency determined by the Tax Court can be assessed and collected unless the petitioner files an "appeal bond" (also called a review bond) with the Tax Court. The appeal bond must be in an amount fixed by the Court on or before the time the notice of appeal is filed. No assessment is made if the bond is filed.

  2. An appeal bond is not the same as an IRC 6603 Deposit. The appeal bond is an irrevocable, open-ended promise by the taxpayer to pay the tax, additions to tax, and interest determined to be due. The taxpayer will provide security for the bond, which is not posted to the taxpayer's account.

  3. The docket attorney from Counsel’s Field office has the responsibility to ensure prompt assessment of the tax, generally within 60 days after the decision of the Tax Court becomes final. Counsel will notify Appeals when the decision becomes final (after the case is finished in the Court of Appeals and/or Supreme Court).

8.20.6.18.2  (09-11-2013)
Appeal Filed by Petitioner, Bond Filed (8.4.1.31.3)

  1. Counsel notifies APS if a petition was filed in Appeals Court and if a bond was filed. If a bond was filed, APS will take the following actions:

    1. Enter action code APPEALED and the TODATE on the update case/returns screen. Offices that wish to further identify the case as an appealed Tax Court case may enter a local "LACTION" code and local "TODATE" .

    2. File the copy of the notification (Form 2237 or TLCATS transmittal) in a follow up file.

  2. Once the Counsel attorney receives notification that the decision has become final, he/she will notify Appeals and request an assessment.

    1. The Counsel attorney immediately delivers the administrative file to Appeals, using Form 1734, Transmittal Memorandum, with an annotation, "Tax Court Case/Assessment must be made before [date]."

    2. The APS PTM is responsible for ensuring that APS processes the assessment timely.

8.20.6.18.3  (10-01-2014)
Appeal Filed by Petitioner, No Bond Filed (8.4.1.31.4)

  1. If the petitioner files a notice of appeal but does not file a bond, the tax must be assessed. The decision document will not contain an IRC 6213(a) waiver paragraph so an Agreement Date is not entered on the assessment document, nor is the waiver period considered in the deficiency interest calculation associated with the assessment. The assessment must be made even if the tax is paid.

    1. The attorney contacts the PTM and immediately delivers the administrative file using Form 1734, Transmittal Memorandum, with the note "Appealed Tax Court Case/Assessment must be made."

    2. APS will process the assessment via:
      Form 5403, CC: AMCLSF, in order to keep the AIMS controls open or
      Form 2859, Quick Assessment if required due to dollar amount, or ASED protection.

    3. The earliest assessment statute is 60 days after the Tax Court decision becomes final. The Tax Court decision becomes final after the Appeals Court case (or Supreme Court case) has been completed. Therefore, a quick assessment is not necessary unless notification has been received that the Tax Court decision has become final (the IRC 6213(a) paragraph will not be on this decision so there is no agreement date associated with the resulting tax assessment).

  2. The APS employee who receives the assessment notification or administrative file from Counsel must check the ACDS Category Code to identify if the interim adjustment will be processed by the local APS Team, or if it must be processed by the APS-Complex Interest Team (CIT).

  3. If the ACDS Category Code is IC (Industry Case), CIC (Coordinated Industry Case), or the case is an Estate and Gift Tax case, the APS TE must notify their PTM to prepare an APS-CIT Assignment Request Form and submit it to the *APS Complex Interest mailbox for assignment of an APS-CIT TE for interim assessment action. A response from the *APS Complex Interest mailbox will identify the APS-CIT TE assignment. The documents required to process the interim assessment will be faxed whenever possible*, or if necessary will be mailed to the APS-CIT TE at the address provided in the email response.

    Reminder:

    *Unnecessary shipment of cases should be avoided whenever possible to reduce mailing costs and eliminate the risks for loss and disclosure when mailing PII.

  4. APS will process the interim assessment of the Entered Decision under Appeal as follows:

    1. Verify that the amount of deficiency and/or penalty reflected in the decision agrees with the amounts in Item 12 of Form 5403.

    2. Input TC 521 Closing Code 72 to reverse the TC 520 closing code 72 and initiate collection activity.

    3. Enter action code INTERIM and the TODATE which is the date the case is assigned to the APS TE for assessment In the ACDS Update Case/Returns Screen.

    4. Enter the current date in the FROMDATE, upon receipt of the assessment verification.

      Reminder:

      Assessment Verification requires a complete DLN for the transaction(s) input.

      If Then
      Adjustment is processed via CC: AMCLSF APS TE will monitor the account using CC: TXMODA until the transaction code(s) are fully posted.
      Adjustment is processed via Quick Assessment (Q/A) which APS faxes to the appropriate Accounting function for processing APS TE will receive notification from the Accounting function which includes the complete DLN as well as a copy of the billing assembly.
      Quick Assessment DLN is not provided to the APS TE by the 23C Date APS TE will contact the Accounting function to:
      • identify the reason for the delay

      • provide the information needed to resolve the issue

      • secure the complete DLN and billing assembly

      PEAS Suspense and PEAS Follow-up features must be used to properly control inventory monitoring and set follow-up action date(s).
    5. If the interim assessment is processed by APS-CIT using the necessary faxed documents, and the administrative file is being held by Counsel, or the originating APS Office, the APS-CIT TE will transmit the assessment documentation via fax for association with the administrative file.

    6. Associate the assessment verification with the administrative file and prepare Form 3210 to transmit the administrative file to the designated Counsel Attorney.

    7. Notate on the Form 3210, Document Transmittal, that the assessment is posted and assessment verification is attached.

  5. Update ACDS as follows:

    • ACTION = APPEALED

    • TODATE = date the case is transmitted to Counsel

    • LACTION = (Local Option)

    • LTODATE = (Local Option)

  6. Update ACDS Return Level for each tax period with assessment verification as follows:

    • STATDATE = remove ASED date and leave blank

    • STATCODE = ASESD for each tax period with assessment verification

  7. Follow-up on Form 3210 transmittal receipt as appropriate.

8.20.6.18.4  (10-01-2014)
Refund of Credit While an Appeal of the Tax Court Decision is Pending (8.4.1.31.2)

  1. The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) added IRC 6512(a)(6) and amended IRC 6512(b) to give the federal courts jurisdiction to order a refund of certain amounts while an appeal of a Tax Court decision is pending.

    1. If the Tax Court determines both an overpayment and a deficiency, the Service may refund or credit the uncontested portion of the overpayment while the appeal is pending.

    2. If the Service does not refund or credit the uncontested portion of the overpayment, the taxpayer may bring an action in Tax Court, District Court, or the United States Court of Federal Claims to recover that amount.

  2. When Appeals receives a letter from Counsel directing that an uncontested overpayment is approved for refund of the credit to the taxpayer, APS will manually refund the designated amount of the credit and retain the litigation freeze code (TC 520) on the taxpayer’s account.

  3. APS will process the uncontested portion of the overpayment using Manual Refund Procedures. The letter from Counsel will serve as the authority for initiating the manual refund. The TC 520 Litigation Freeze must be retained on the taxpayer's account currently under the Tax Court`s jurisdiction.

8.20.6.19  (10-01-2014)
Interim Adjustment and Interim Account Update Processing

  1. Tax and/or penalty adjustments requested by the ATE or Counsel Attorney before the taxpayer's case is ready to close with finality are identified as "Interim Adjustments" . An interim adjustment can be required for a wide variety of reasons on an AIMS or a Non-AIMS account. Interim adjustments can be required on Docketed and Non-Docketed cases with open AIMS controls, as well as Collection Due Process (CDP) cases which do not have open AIMS controls. The presence of absence of AIMS controls and the specific interim adjustment requested by the ATE determines which adjustment document and adjustment Command Code APS will use to perform the interim adjustment.

  2. Interim AIMS adjustments are processed via Form 5403 AIMS CC: AMCLSF.

  3. Interim Non-AIMS adjustments are processed via Form 3870 or Form 8485 IDRS CC: REQ54/ADJ54.

  4. An interim adjustment can be requested by the ATE for the following reasons:

    • Abatement of an erroneous or premature assessment (AIMS or Non-AIMS)

    • Assessment of Employee Share of FICA Tax before issuance of a SND (AIMS)

    • Assessment of a partial agreement of tax and or penalty in a deficiency case (AIMS)

    • Assessment of an entered tax court decision that has been Appealed with no bond filed by the petitioner (AIMS)

    • Collection Due Process (CDP) adjustments prior to the CDP case final determination (Non-AIMS)

    • Identify Theft (IDT) adjustments (AIMS or Non-AIMS)

    • Non-Petitioning Spouse MFT 31 agreed or default assessment (AIMS)

    • Refund of a partial claim allowance where a Certified Notice of Partial Disallowance is suspensed until expiration of the time for which the taxpayer can file a Petition with the USTC (AIMS or Non-AIMS)

    • Refund of an uncontested overpayment when an entered tax court decision has been Appealed (AIMS)

    • Reversal of a refundable credit before the issuance of a SND (AIMS)

    • Other reasons not specifically listed (AIMS or Non-AIMS)

  5. When AIMS controls are open, the interim adjustment is input via CC: AMCLSA.

  6. When AIMS controls are not open, the interim adjustment is input via CC: REQ54/ADJ54.

  7. When the ASED is within 60 days for an AIMS assessment or within 90 days for a Non-AIMS assessment, Form 2859, Quick Assessment procedures are followed.

  8. The ATE or Counsel may also request APS update a taxpayer's account information via an interim account update that is not a tax/penalty related adjustment such as:

    • AIMS ASED Update CC: CC: AMSTUB
      IRM 2.8.4.3, Command Code AMSTUB

    • Credit Transfer CC: ADD/ADC 24,34,48
      IRM 21.5.8.4.2, Credit Transfer Input on IDRS
      Form 2424, Account Adjustment Voucher

    • Entity Update CC: ENREQ INCHG/BNCHG
      IRM 2.4.9.3, Command Code ENREQ
      IRM 2.4.9.6, Command Codes INCHG, IRCHG, BNCHG or BRCHG
      Form 2363, Master File Entity Change

    • ID Theft Indicator Input/Update or other IDRS Input or IDRS Data Extraction Request
      IRM 2.4.19.1 , Overview of Command Codes REQ77, FRM77 and FRM7A
      Form 4844, Request for Terminal Action
      Form 3177, Notice of Action for Entry on Master File

    • Miscellaneous Transaction Input CC: FRM77
      IRM 2.4.19.1, Overview of Command Codes REQ77, FRM77 and FRM7A
      Form 3177, Notice of Action for Entry on Master File

  9. Interim account adjustments and interim account updates are not required on most cases and will only be requested when necessary to ensure the taxpayer's account information is accurate while under consideration by Appeals or the United States Tax Court.

  10. Use of Integrated Automation Technology (IAT) is mandatory for all APS employees beginning 10/01/2014.

  11. APS TEs must place the PEAS case in suspense and monitor all interim account updates and all interim account adjustments until they are posted to the taxpayer's account.

  12. APS TEs must also close any IDRS Control Base assigned to their IDRS number when their input transaction(s) post.


More Internal Revenue Manual