Employees in the Accounts Management (AM) organization respond to taxpayer inquiries and phone calls; as well as process claims and other internal adjustment requests. Notices provide general information, provide account updates, and relay requests for action to internal and external recipients.

Refer to IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, for the information.

The Wage and Investment Commissioner has overall responsibility for the policy related to this IRM, which is published on a yearly basis.

Accounts Management’s Policy and Program Management Section has responsibility for the information in this IRM. Information is published in this IRM on a yearly basis. Additional information is found in IRM 1.1.13.9.4, Accounts Management and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Customer Service Representatives (CSRs) and Tax Examiners (TEs). For reports concerning quality, inventory, aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Age listings can also be viewed by accessing Control Data Analysis, on the Control-D /Web Access server, which has a login program control.

Program Effectiveness: Program Effectiveness is determined by Account Management’s employee successfully using IRM guidance to perform necessary account actions and duties.

Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Service Support.

The following table contains frequently used acronyms with their definitions.

Refer to IRM 1.4.2.1.8, Related Resources, for information on related resources that impact internal controls.

Erroneous Correspondence is the result of an IRS error, not Identity Theft or taxpayer error.Erroneous Correspondence meeting the criteria in IRM 25.13.1.3, Erroneous Correspondence Procedures - Report Erroneous Correspondence Process, must be reported through the Report Erroneous Correspondence (Red Button) processes within one hour of discovering the incident.

Correspondence which is not erroneous does not need to be reported to the Office of Taxpayer Correspondence (OTC) or to the Computer Security Incident Response Center (CSIRC) using the Red Button Process. This includes correspondence sent to the taxpayer's last known address but where it is later found that:

When a third-party contacts the IRS, stating they received any of the letters listed in paragraph 2 addressed to another taxpayer, the Erroneous Correspondence must be reported to Return Income & Verification Operations (RIVO).

Contacts regarding Letter 4883-C or Letter 5071-C with an incorrect address should not be reported to RIVO.

If the letter or notice number is unknown because the customer has not opened the envelope, or is unable to determine what the letter number or notice number is, advise the customer to return the correspondence, indicating that the addressee does not reside at that address.

If the taxpayer indicates receipt of a transcript and it contains incorrect information due to possible identity theft, take the following actions:

Section 3201(d) of Reform and Restructuring Act of 1998 requires the IRS to (whenever practicable) mail duplicate notices separately to each individual filer of a joint tax return. This process is referred to as dual notice issuance.

Dual notices are issued as follows:

Notices that do not need to be sent separately include Submission Processing pipeline notices (including Math Error notices) and Collection installment agreement monthly reminder notices. Most of the dual notices include language to explain why the IRS is sending duplicate notices.

If taxpayers have questions concerning notices of deficiency, direct them to call the number on the notice, or write to address shown. Advise of the following:

A CP 05, Information Regarding Your Refund, or CP 05A, We’re Holding Your Refund Until We Finish Reviewing Your Tax Return, is issued to taxpayers.

The notice informs the recipient their refund is being held pending additional review.

Refer to IRM 21.5.6.4.35.3, -R Freeze Overview For Accounts With Return Integrity and Verification Operations (RIVO) Involvement, for additional information.

A CP 06, Exam Initial Contact Letter – PTC – Refund Frozen, notifies the taxpayer that their refund will be held pending an examination. Form 14950, Premium Tax Credit Verification, is enclosed to request the appropriate documentation.

A CP 06A, Request for Supporting Documentation, requests supporting documentation regarding the Premium Tax Credit (PTC) You Claimed - Balance Due/Even.Form 14950, Premium Tax Credit Verification, is enclosed to request the appropriate documentation.

A CP 08, Additional Child Tax Credit, notifies the taxpayer of potential eligibility to claim additional Child Tax Credit. The notice is issued when the taxpayer:

Refer to IRM 21.6.3.4.2.8.3, CP 08, Additional Child Tax Credit, for procedures on working CP 08 notices.

A CP 09, Earned Income Credit - You May Be Entitled to EIC, notifies the taxpayer of potential eligibility for Earned Income Tax Credit (EITC).

Refer to IRM 21.6.3.4.2.7.8, EITC CP 09 / CP 27.

A CP 10 notifies the taxpayer that an overpayment applied to the next year's tax as a credit-elect was reduced due to an error on a Form 1040 series return. There are different types of CP 10 notices:

When responding to a CP 10 series, follow guidance in IRM 21.5.4, General Math Error Procedures.

A CP 11 is issued as a first notice notifying the taxpayer of an error in the math on an individual return that results in a balance due. There are different types of CP 11 notices:

When responding to a CP 11 series notice, follow guidance in IRM 21.5.4, General Math Error Procedures.

During processing, a Letter 12-C, Individual Return Incomplete for Processing: Form 1040, Form 1040A and Form 1040EZ, is sent to IMF taxpayers requesting information missing from the return.

Returns are not returned to the taxpayer. The return is suspended awaiting response from the taxpayer.

A CP 12, Math Error, Overpayment of $1 or More, is issued as a first notice to inform the taxpayer of an error in the math on an individual return that changes the refund amount.

A refund hold will be applied when the account meets Notice Review criteria on CP 12, Math Error, Overpayment of $1 or more, CP 16, Overpayment with Offset, and CP 21A, Data Processing Adjustment Notice, Balance Due). The account will contain a Transaction Code (TC) 570 with blocking series "55555", indicating the refund hold has been applied, and a TC 971 AC 804 with the CP number in the miscellaneous field. The hold will systemically expire 7 calendar days after the TC 971 AC 804 daily cycle. If both the AC 804 and AC 805 are present, the hold will be for 7 calendar days.

There are different types of CP 12 notices:

When responding to a CP 12 series notice, follow the table below:

A CP 13, Math Error- Balance Due < $5, Overpayment < $1, notifies the taxpayer that:

There are different types of CP 13 notices:

Follow the table below if the taxpayer disagrees with the notice.

A CP 14, Balance Due $5 or More, No Math Error, is issued as a first notice to notify taxpayer of a balance due when no math error or Estimated Tax (ES) discrepancy exists. Do the following:

A CP 15, Civil Penalty Notice, notifies the taxpayer a civil penalty was assessed and why it was assessed.

A CP 15B, Civil Penalty Notice - Trust Fund Recovery Penalty, notifies the taxpayer a trust fund recovery civil penalty (TFRP) was assessed.

A CP 16, Overpayment with Offset, is issued as a first notice to notify taxpayer of an error in the math on an individual return resulting in an overpayment that was applied to another IMF tax liability. A refund hold will be applied when the account meets Notice Review criteria for certain notices (CP 12, Math Error, Overpayment of $ 1 or More, CP 16, Overpayment with Offset, CP 21A, Data processing Adjustment notice, balance Due of and CP 24, Estimated Tax Discrepancy, Overpayment of $1 or More). The account will reflect a TC 570 with blocking series "55555," indicating the refund hold has been applied, and a TC 971 AC 804, and the miscellaneous field will reflect the CP number. The hold will systemically expire 7 calendar days after the TC 971 AC 804 daily cycle. If both the AC 804 and AC 805 are present, the hold will be for 7 calendar days.

There are different types of CP 16 notices:

When responding to notice inquiries:

A CP 17, Refund of Unfrozen Excess ES Credits, notifies the taxpayer of a refund of unfrozen estimated credits.

A CP 21A, Data Processing Adjustment Notice, Balance Due of $5 or more, notifies the taxpayer of a data processing (DP) tax adjustment resulting in a balance due when account is in Taxpayer Delinquent Account (TDA) Status.

For resolution, follow the table below:

A CP 22A, Data Processing Adjustment Notice, Balance Due of $5 or more, notifies the taxpayer of a data processing (DP) tax adjustment resulting in a balance due of $5 or more when the account was not in TDA status prior to the adjustment or when the account is going to TDA status in the current cycle.

Follow procedures in IRM 21.3.1.6.15, CP 21A Data Processing Adjustment Notice, Balance Due of $5 or more, when responding to taxpayer inquiries.

A CP 23, Estimated Tax (ES) Discrepancy, Balance Due of $5 or More, notifies the taxpayers of a discrepancy between estimated tax credits claimed on the return and credits posted to the account, resulting in a balance due of $1.00 or more. There are different types of CP 23 notices:

These notices also notify the taxpayer of a math error.

Review payment amounts and dates.

A CP 24, Estimated Tax (ES) Discrepancy, Overpayment of $1 or More, notifies the taxpayer of a discrepancy between estimated tax credits claimed on return and credits posted to the account, resulting in an overpayment of $1.00 or more. In addition to a discrepancy in estimated tax payments, a CP 24 may advise the taxpayer their return contained a math error or the statute for refund has expired. A refund hold will be applied when the account meets Notice Review criteria for certain notices (CP 12, Math Error, Overpayment of $1 or More, CP 16, Overpayment with Offset, CP 21A, Data Processing Adjustment Notice, Balance Due of ..., CP 21B Data Processing Adjustment Notice, Overpayment of ..., and CP 24, Estimated Tax (ES) Discrepancy, Overpayment of $1 or More). The account will reflect a Transaction Code (TC) 570 with blocking series "55555" indicating the refund hold has been applied and a TC 971 Action Code (AC) 804, (the miscellaneous field will reflect the CP number). The hold will systemically expire 7 calendar days after the TC 971 AC 804 daily cycle. If both the AC 804 and AC 805 are present, the hold will be for 7 calendar days.

There are different types of CP 24 notices:

When responding to a CP 24 series notice, refer to the table below.

A CP 25, Estimated Tax Credits Discrepancy - We Changed Your Return to Match Your Credits or Payments Posted to Your Account - Even Balance, notifies the taxpayer of a discrepancy between estimated tax credits claimed on return and credits posted to the account, resulting in an overpayment of less than $1.00, or a balance due of less than $5.00.

This notice also informs taxpayer that no refund is issued for less than $1.00 unless taxpayer requests it in writing, and no payment is necessary of a balance due less than $5.00.

There are different types of CP 25 notices:

Refer to table in IRM 21.3.1.6.17, CP 23 Estimated Tax (ES)Discrepancy Balance Due of $5 or More, if taxpayer wants to pay Balance Due < $5.

A CP 27, EIC Potential for Taxpayer Without Qualifying Children, notifies the taxpayer without children of possible eligibility for the EITC.

Refer to IRM 21.6.3.4.2.7.8, EITC CP 09 / CP 27.

A CP 29, Amended Return Posted, No Original, is forwarded to the Files function. The returns are pulled, batched and routed to Accounts Management (AM) for assignment.

Refer to IRM 21.5.6.4.9, E- Freeze.

A CP 30, Estimated Tax Penalty Notice, notifies the taxpayer all or part of an overpayment has been applied to an estimated tax penalty. Advises taxpayer all or some of required estimated tax payments were not timely.

A CP 30A, Estimated Tax Penalty Recompute Notice, notifies the taxpayer that Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, was incorrect, resulting in a refund.

Issued when an original refund check is not cashed within one year. The CP 32 notifies the taxpayer the refund was reissued. The CP 32A notifies the taxpayer we will not reissue again without a request from the taxpayer.

The CP 36, Duplicate Filing Notice, is an internal notice issued when there is a duplicate filing condition on the module, the duplicate filing case is controlled on IDRS and assigned for review. Refer to IRM 21.6.7.4.4.1, TRNS36 — Control, for more information.

A CP 39, Overpayment Applied to Balance Due - Secondary SSN, notifies the taxpayer an overpayment for a return on which the taxpayer is the secondary SSN has been applied to the balance due on a return for another year, which is the return identified in the heading of the notice. The notice explains that a joint filer is responsible for paying the tax due on the return as originally filed and any tax resulting from subsequent adjustment (e.g., an examination). Advise taxpayer this is an information notice and a response is not required.

The CP 40, Overdue Account Sent to Private Collection Agency (IMF), notifies the taxpayer that his/her tax account has been assigned to a private collection agency (PCA) for collection.

The CP 140, Overdue Account Sent to Private Collection Agency (BMF)notifies the business that their tax account has been assigned to a private collection agency (PCA) for collection.

Both notices advise taxpayers and/or businesses to contact the PCA directly to resolve balance due issues. Refer to IRM 5.19.1.5.21, Private Debt Collection, for additional information.

A CP 41/ TRNS41, Unresolved Manual Refund Freeze, is an internal notice generated when:

The CP 41/ TRNS41 is forwarded to the Files function. The manual refund document is pulled and the case is forwarded to Customer Service to be worked.

Refer to IRM 21.5.6.4.48, -X Freeze, for procedures.

A CP 42, Overpaid Taxes Applied - Refund Reduced to Pay on a Secondary Social Security Number (SSN), notifies the taxpayer of an offset of an overpayment for the return that is the subject of the notice to satisfy a Federal tax obligation for a joint return for another tax year on which the taxpayer was the secondary SSN. Be aware of disclosure criteria. Refer to IRM 21.1.3.2, General Disclosure Guidelines.

A CP 44, Credit Available For Application to Non-IMF Account, is issued when there is a refundable credit of ≡ ≡ ≡ ≡ ≡ ≡ ≡ on a tax module and there is a TC 130 present in the entity module. This is a three-part notice; Part 1 is sent to the taxpayer and Parts II and III are generated to the IRS.

After application of credit, remaining overpayment is refunded.

A CP 49, Overpayment Adjustment - Offset, notifies the taxpayer the overpayment on an individual return was applied to a prior year’s unpaid IMF liability.

A CP 51A, Non-Compute, Balance Due of $5 or more, notifies the taxpayer the IRS computed their tax and gives balance due. Interest or penalty for late payment is not charged if amount due is paid within 30 days of notice date or by due date of return.

Use the chart below to assist in the working of CP 51A responses.

A CP 51B, Non-Compute, Overpayment of $1 or more, notifies the taxpayer the IRS computed their tax and provides refund amount. Advise taxpayer the refund should be received within 2 weeks of the date of the notice if no other Federal taxes or obligations are owed and a refund amount remains.

A CP 51C, Non-Compute, Balance Due < $5, Overpayment <$1, notifies the taxpayer the IRS computed their tax and account balance is zero.

A CP 53, No Direct Deposit of Refund Check, Check in the Mail, notifies the taxpayer an electronic funds transfer was not honored.

There are four notices in the CP 54 series:

These notices are issued to a taxpayer when:

Refer to IRM 3.13.5.20, IMF Taxpayer Identification Number (TINs) Format, for information on ITINs and IRM 21.5.6, Freeze Codes, for information on "I" Freeze. Usually an account with an invalid SSN also has a "G" Freeze (math error), refer to IRM 21.5.4, General Math Error Procedures.

ACP 56V, Installment Reminder for Deferred Social Security Tax (IMF), is the first courtesy reminder notice for taxpayers that they may have an amount due on December 31, 2021 if they have deferred the payment and deposit of certain social security taxes incurred from March 27, 2020 to December 31, 2020 under section 2302 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The amount due for December 31, 2021 will be one-half of the amount they were eligible to defer, with the remainder due December 31, 2022. The amount eligible to defer is generally one-half of the employer share of social security taxes for employers and Schedule H filers, and/or one-half of the social security taxes due for the 2020 filing year for self-employed individuals.

A CP 57, Electronic Fund Transfer - Notice of Insufficient Funds on a DDIA Payment (IMF), notifies the taxpayer that a direct debit installment agreement payment was not honored due to insufficient funds.

For more information refer to IRM 20.1.10.7, IRC 6657 - Bad Checks (Dishonored Checks or Other Forms of Payment).

A CP 60, Credit Reversal Adjustment Notice, notifies the taxpayer when a credit is transferred out creating a debit balance of $5.00 or more. Informs taxpayer of a credit reversal.

A CP 62, Notice of Credit Transfer, notifies the taxpayer of a payment they inquired about was located and applied to a specific account. The notice also advises of one of the following:

Research IDRS and explain the reason for the notice. Follow procedures in table below.

A CP 71, Reminder Notice, is issued to a taxpayer once a year to remind taxpayer of a balance due, including penalty and interest. The notice is generated on accounts previously in a deferred Status (Status 23):

A CP 71A, Reminder Notice, is issued to a taxpayer once a year on tax modules in Status 53 (currently not collectible). Status 53 is an IDRS status and the module may show another Master File status.

A CP 71C, Reminder Notice - Balance Due, and CP 171, BMF Bi-annual Reminder Notice, is issued to taxpayer bi-annually for all Taxpayer Delinquent Accounts (TDA) in the queue that have been in status 24 for at least one year. The Compliance Services Collection Operations (CSCO) return address will be on the notice along with an Automated Collection System (ACS) telephone number. These notices are issued from February through November based on the Taxpayer's Identification Number (TIN).

A CP 71D, Reminder Notice - Balance Due, is issued to taxpayer once a year on accounts in collection Status 26 with a module balance due of $25.00 or greater. A separate notice is issued for each module in Status 26.

A CP 71H, Annual Balance Due Reminder Notice for ACA, is issued once a year on Affordable Care Act (ACA), MFT 35 modules to remind the taxpayer of a balance due.

A CP 75, Exam Initial Contact Letter – EIC – Refund Frozen, notifies the taxpayer that their refund will be held pending an examination. The case will be open in the Audit Information Management System (AIMS) in Origination Code 5041, Project Code 0261, and source code 06. Refer to IRM 21.5.10.4.1, Earned Income Tax Credit (EITC) and Other Projects, for information on how to handle these cases.

A CP 81, We May Have a Refund for You, notifies the taxpayer when the refund statute is within six months of Refund Statute Expiration Date (RSED). The CP 81 informs the taxpayer "We May Have A Refund For You" . The CP 81 is issued to coincide with news and press releases to remind taxpayers:

Refer to the following references for additional information:

A CP 85, Exam EIC "Soft" Notice, and CP CP 87, Exam Dupe TIN Notice, are issued to taxpayer as soft notices by Examination. They are sent for information purposes only and inform the taxpayer they may have claimed one of several tax benefits in error.

No adjustments are made to the return, nor will be made, unless the taxpayer initiates an adjustment. For additional information and adjustment procedures, refer to IRM 21.5.10.4.2, Exam Soft Notices CP 85A, CP 85B, CP 85C, CP 87A, CP 87B, CP 87C, and CP 87D.

A CP 86, Restricted Interest/Penalty Conditions, is an internal notice and should generate in the same cycle as the TC 150. Research the account to determine the reason for the restriction and compute the current amount of interest to assess or abate.

Anytime debit interest is manually computed, it is necessary to recompute the entire tax module to ensure an accurate computation is made and attach a source document to the account. Refer to IRM 20.2.5.6.2, Manual Computations, and IRM 20.2.1.4.2.1, Manual Calculation of Interest - Documentation, for more information.

Update interest from the last interest update on manually computed accounts. Request return and source documents if necessary.

Refer to IRM 20.2, Interest, for interest computation.

Refer to IRM 21.7.11.4.5.1, Routing of CP 186 with U-, -V, -W, -Y, or TC 521 with Closing Codes 81.

A CP 89, Annual Installment Agreement Statement, is issued to taxpayer as an annual reminder notice sent on all accounts with installment agreement activity. This notice provides the following information:

The notice instructs the taxpayer:

The Form 9774, Annual Reminder Notice for Automated Non-master File (ANMF) / Non-Master File (NMF), is sent to all Non-Master File (NMF) accounts, including Tax Delinquency Account (TDAs) and those in Status 53. Refer to IRM 21.3.1.8.1, Non-Master File (NMF) Notices, for more information.

The CP 2057, is a soft notice which informs the taxpayer there is a discrepancy with income reported by a third-party to the IRS and the income reported on their tax return. The notice provides information, such as, the name of the third-party and the address. The issuance of the CP 2057 is identified by Transaction Code 971 Action Code 922 on Command Code TXMODA or IMFOLT. The CP 2057 may be available for viewing on the Alerts section of the Account Summary window on AMS, "AUR data present - YYYY". If the CP 2057 is not available for viewing on Account Management System (AMS), you can review Command Code (CC) IRPTR for the additional income information reported under the taxpayer's Social Security number (SSN). The notice provides the toll-free number of 877-570-3536.

CP 2057, Instructs the taxpayer to review their records and if the income reported on their return is CORRECT:

CP 2057 instructs the taxpayer to review their records and if the income reported on their return is NOT CORRECT :

Refer to the chart below for handling calls received pertaining to the CP 2057:

A CP 2000, Request for Verification of Unreported Income, Payments, or Credits, notifies the taxpayer of a proposed change to tax liability because of income that is not identifiable or apparently not fully reported on the return and/or credits and deductions that appear overstated.

When a CP 2000 is issued, the Automated Underreporter (AUR) function puts a control on the module. IDRS research shows:

When working accounts with Automated Underreporter (AUR) involvement, research the account to determine where the account is in the AUR process. This can be determined by reviewing the Underreporter Process Codes listed under the Transaction Code (TC) 922 on the account. The status of an underreporter case will be determined by the last process code posted. The definitions of the Underreporter Process Codes can be found in Section 8C, of Document 6209, IRS Processing Codes and Information, and in IRM 4.19.3-4, AUR Process Codes. Refer to the chart in paragraph 4 to determine if a case should be processed or referred to AUR.

When working phones: Review the account and determine the last processing code. Refer to the chart in paragraph 4 to determine if the call meets AUR criteria and should be transferred to AUR. If it is determined the AUR criteria has been met, transfer to the AUR numbers shown below.

When working paper: All correspondence and Forms 1040-X must be reviewed to determine if the response is related to the AUR issue or account change. Refer to the chart in paragraph (4) to determine if case meets AUR criteria. Referring the case back to the open control in AUR should be only for cases where the status allows for the referral and the case meets AUR criteria. If the change is for filing status, dependents, exemptions, claiming a credit, correcting math error or you receive a Form 8379, Injured Spouse Allocation, DO NOT refer case to AUR. Instead follow normal adjustment procedures. AUR will return all Form 1040-X documents and correspondence if it does not meet their criteria. When working amended returns/claims, if it is determined the case meets AUR transfer criteria, input a TC 971 AC 015 to indicate the case has been forwarded to Underreporter. Issue Letter 86C to taxpayer when sending correspondence to another area.

Once the status of the AUR issue is determined, use the following chart to determine the correct action to be taken:

Explain reason for the notice. Ask the taxpayer to compare his or her records with income and withholding listed on the CP 2000. You can often resolve the discrepancy based on the taxpayer’s response.

If you cannot resolve the discrepancy based on the taxpayer’s response, transfer the call to AUR:

If the taxpayer requests a copy of his or her tax return, use the TDS system to provide a copy of the return, refer to IRM 21.2.3.3.1, Assistor Provided through Transcript Delivery System.

If the taxpayer indicates a need to contact an IRP payer, advise the taxpayer of different sources to obtain this information, e.g., Yellow Pages, the internet, directory assistance. If the taxpayer has tried these sources and failed, research IDRS using CC IRPTR and provide the address if available.

If a call is received by a third-party who states the authorization to speak to the IRS was given via the CP 2000, transfer the call to AUR. AM does not have the capability to see the authorization given on the CP 2000.

Users having access to Accounts Management Services (AMS) may print and provide a copy of the CP 2000, Request for Verification of Unreported Income, Payments, or Credits, and CP 2501, Initial Contact to Resolve Discrepancy Between Income, Credits, and/ or Deductions Claimed on Return and Those Reported by Payer, or CP 2893, Underclaimed / Over-claimed Withholding, Excess Social Security or Medicate Tax Closure.For delivery methods see IRM 21.1.3.9(5), Mailing and Faxing Tax Account Information.

Provide a copy of a CP 2000, CP 2501, or Letter 2893C, based on how the request was received:

Advise taxpayer to expect a reply within 60 days unless the call was transferred to the AUR transfer number.

In addition to CP 2000, Underreporter uses other letters to request and gather information. If taxpayer indicates they received these letters, explain based on the following:

AUR sends CP 2005 to taxpayers to thank them for information and to inform them that AUR is closing the case with no change to the tax liability and/or refundable credits.

If taxpayer has questions about these notices, transfer the call to AUR:

AUR accepts oral statements for resolution of many issues. Refer to IRM 4.19.3.22.2, Telephone Responses.

Transfer the call to AUR:

Oral Statement Authority (OSA) is accepted from a designated third-party only if taxpayer has completed the Authorization Statement on the CP 2501 or CP 2000 or submitted a valid Power of Attorney (POA).

A CP 2501, Initial Contact to Resolve Discrepancy Between Income, Credits, and/or Deductions Claimed on Return and Those Reported by Payer, is an initial contact letter requesting additional information. In certain situations, issuance of a CP 2501 provides better customer service since it is an inquiry instead of a proposal of assessment.

Do not refer Tentative Carrybacks (TENTs,) Restricted Interest Claims (RINTs), payment tracers, or entity change only requests to AUR.

If correspondence relates to two different tax periods, and one of which relates to the AUR Program and you can separate the issues by tax period, then,

AM telephone assistors will address ITIN status and notice inquiries from applicants or their authorized representatives. General instructions for responding to ITIN notice inquiries can be found in IRM 3.21.263.8, Accounts Management (AM).

Instructions for responding to inquiries on specific ITIN notices are in the following subsections.

This letter is issued yearly on balance due accounts. It reminds the taxpayer of a balance due and advises the taxpayer of the following:

The letter also warns of enforcement action. Research the account to verify the current status and payoff amount if requested. Transfer the call to ACS according to the TTG if the caller needs further assistance.

The Letter 6115-C is a soft notice that informs the taxpayer there appears to be a discrepancy with income reported by a third-party to the IRS. The notice provides information, such as, the name of the third-party and the address. The issuance of the Letter 6115-C is identified by Transaction Code 971 Action Code 123 with MISC field of “6115-C SENT”on Command Code TXMODA or IMFOLT. You can review CC IRPTR for the additional income information reported under the taxpayer's SSN.

Letter 6115+C requests that the taxpayer review their records and if the income reported on their return is CORRECT to:

Letter 6115-C requests that the taxpayer review their records and if the income reported on their return is NOT CORRECT to:

Refer to chart below for handling of calls received pertaining to the Letter 6115-C:

IRC 965 of the Internal Revenue Code imposes a transition tax on untaxed foreign earnings of foreign corporations with U.S shareholders. For more information, refer to IRM 21.5.13, IRC Transition Tax Procedures - Accounts Management. The following section provides guidance for IMF CP notices that were created for IRC 965 processing and worked in the Brookhaven campus.

The CP 47A, CP 47B, and CP 47C inform the taxpayer that the IRS has received and processed their income tax return and they elected to pay their IRC 965 net liability in installments.

The CP 56, Annual Section 965(h) Installment Notice, is issued annually to notify taxpayers who made a 965(h) election of their IRC 965 installment payment amount and due date. The Brookhaven employee will advise the taxpayer to follow the instructions on the notice and pay the amount due. Failure to pay by the due date may result in a penalty and the full amount of their net tax liability under IRC 965 may become due immediately. Refer to IRM 21.5.13, IRC Transition Tax Procedures - Accounts Management.

Several U.S. Tax Court decisions have confirmed that certain micro-captive arrangements are not eligible for claimed Federal tax benefits.

Letter 6336, Micro-Captive Insurance, Soft Notice, was sent to taxpayers that have taken a deduction or other tax benefit on a prior year tax return related to micro-captive insurance. The letter states that the IRS has information that the taxpayer has taken a deduction or other tax benefit related to micro-captive insurance on a prior year tax return (and disclosed pursuant to Notice 2016-66and Notice 2017-08).

It provides taxpayers with instructions on how to amend their tax return to remove the benefits, if needed, as well as a separate mailing address for correspondence/statements.

For statements and/or correspondence, the mailing address would be:

For an individual amended return, the letter instructs the taxpayer to write the phrase Microcaptive at the top of the first page of the Form 1040-X and mail it to the following address:

For a business amended return filed on paper, the letter instructs the taxpayer to write the phrase “Microcaptive” at the top of the first page of the amended return and mail to the address listed in the instructions for the amended return. For a business amended return filed electronically, the letter instructs the taxpayer to include “Microcaptive” when explaining the reasons for changes.

For IMF amended returns received, AM will be centralizing these claims in the Philadelphia Campus under IDRS Number 0543060816 for domestic claims and IDRS Number 0534180125 for international, and scanned in under CIS Category code SPC 0. In some instances, statutes may be extended as needed according to local procedures established between Philadelphia AM and LB&I.

For instructions on adjusting these cases, see IRM 21.5.3 General Claims Procedures for more information.

BMF amended returns will also be scanned into CIS under category code SPC 0, see IRM 21.7.4.4.4.20, Letter 6336, Micro-Captive Insurance, Soft Notice, for more information regarding BMF amended returns.

The letter also provides a unique hot line number for taxpayers to call if they need to speak to someone concerning this letter. That hot line number is 737-800-7995.

If a call is received on the toll-free line, advise the caller to respond to the notice or you may provide the caller with the hot line number 737-800-7995. Advise the taxpayer that this is not a toll-free number.

A CP 101, Math Error, Balance Due of $5 or More on Form 940, notifies the taxpayer of an error on Form 940 and Form 940–EZ, Employer’s Annual Federal Unemployment Tax (FUTA) Return, that resulted in a balance due.

When responding to Balance Due issues, refer to 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due / Missing Returns

When taxpayer indicates a payment was made and has not been credited to the account, refer to IRM 21.5.7.3, Missing Payments Research.

For resolution of the error, refer to IRM 21.5.4.5.3, Processing Responses to Math Error Notices.

A CP 102, Math Error, Balance Due of $5 or More on Form 941, Form 941SS, Form 943, Form 944, Form 944SS, Form 945, notifies the taxpayer of an error on Form 941, Employer’s Quarterly Federal Tax Return, Form 941SS, Employer’s Quarterly Federal Tax Return American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands, Form 944, Employer’s Annual Federal Tax Return, Form 943, Employer’s Annual Tax Return for Agricultural Employees, or Form 945, Annual Return of Withheld Federal Income Tax Return, that results in a balance due.

When responding to questions about a balance due, refer to IRM 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due / Missing Returns.

When taxpayer indicates a payment was made and has not been credited to account, refer to IRM 21.5.7.3, Credit Transfers.

For resolution of the CP 102, refer to IRM 21.5.4.5.3, Processing Responses to Math Error Notices.

A CP 107, Math Error, Balance Due of $5 or More- Form 1042, notifies the taxpayer of an error on Form 1042. For more information concerning the CP 107, see IRM 3.14.2.9.24, CP 107, Balance Due Form 1042.

A CP 108, Problem With Your Federal Tax Deposit (FTD), notifies the taxpayer when Service Center Recognition Image Processing System (SCRIPS) processing does not find the type of tax and/or tax period cannot be determined on an Electronic Federal Tax Payment System (EFTPS) payment.

This notice advises taxpayer where the credit has been posted and provides a tear-off portion to be returned if payment was applied incorrectly. Refer to IRM 21.7.11.4.1, CP 108 - Problem With Your Federal Tax Deposit (FTD), for resolution.

A CP 111, Math Error, Overpayment of $1 or More on Form 940, notifies the taxpayer of an error on the Form 940, Employer’s Annual Federal Unemployment Tax (FUTA) Return, resulting in a change in the amount of the refund.

When responding to questions about a balance due, refer to IRM 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due / Missing Returns.

When taxpayer indicates a payment was made and has not been credited to account, refer to IRM 21.5.7.3, Credit Transfers.

For resolution of the CP 102, refer to IRM 21.5.4.5.3, Processing Responses to Math Error Notices.

A CP 112, Math Error, Overpayment of $1 or More on Form 941, Form 941-SS, Form 943, Form 944, Form 944-SS, and Form 945, notifies the taxpayer of an error on Form 941, Form 941-SS, Form 944, Form 943, or Form 945, resulting in a change in the amount of the refund.

When responding to questions about a balance due, refer to IRM 21.1.1.3.1, Accounts Management (AM) Customer Service Representative (CSR) Duties Handling Accounts with Balance Due / Missing Returns.

When taxpayer indicates a payment was made and has not been credited to account, refer to IRM 21.5.7.3, Credit Transfers.

For resolution of the CP 102, refer to IRM 21.5.4.5.3, Processing Responses to Math Error Notices.

A CP 117, Math Error, Overpayment Form 1042, generates when the taxpayer makes an error in calculation resulting in the correction generating a refund. For more information see IRM 3.14.2.9.25, CP 117, Overpayment Form 1042.

CP 130, You May be Exempt From AMT, will generate when the taxpayer completes Form 4626, Alternative Minimum Tax - Corporations, and it appears the taxpayer is not liable for AMT.

Refer to IRM 21.7.4.4.4.7.3, CP 130 – Potential Exemption from Alternative Minimum Tax (AMT), for information on how to work this notice.

A CP 134B, FTD Discrepancy - Balance Due, notifies the taxpayer that the amount of Federal Tax Deposits (FTDs) or estimated tax payments credited differs from the amount reported resulting in a balance due.

Notice generated on tax modules with a math error with math error notice codes 24, 26 or 39:

A CP 134R, FTD Discrepancy - Refund, notifies the taxpayer that the amount of Federal Tax Deposits (FTDs) or estimated Tax payments credited differs from the amount reported resulting in an overpayment.

Notice generated on tax modules with a math error notice code 24, 26 or 39:

A CP 136, Annual Notification of FTD Deposit Requirements (941, 941SS), is issued yearly to filers of Form 941 and Form 941-SS to advise employers of which deposit method to use for the upcoming calendar year if different from the current deposit method.

A CP 136B, Your Federal Tax Deposit Requirements for (Form 941) figured using the second preceding calendar year Form 944 as the Form 941 lookback period, is issued yearly to filers of Form 941 who filed Form 944 in the current or prior year, to advise employers of which deposit method to use for the upcoming calendar year.

A CP 137, Annual Notification of FTD Deposit Requirements (Form 943), is issued yearly to filers of Form 943 to advise employers which deposit method to use for the upcoming calendar year if different from the current deposit method.

A CP 137A, Annual Notification of FTD Deposit Requirements (Form CT-1), is issued yearly to filers of Form CT-1 to advise employers which deposit method to use for the upcoming calendar year if different from current deposit method.

A CP 137B, Annual Notification of FTD Deposit Requirements (Form 945), is issued yearly to filers of Form 945 to advise employers which deposit method to use for the upcoming calendar year if different from the current deposit method.

A CP 138, Notification That the Overpayment on the Return was Offset Against Another Tax Period with a Balance Due, notifies the taxpayer that an overpayment on a return has been offset to another tax period with a balance due. After researching IDRS, explain reason for the balance due. Refer to IRM 21.5.7, Payment Tracers, for information about locating missing payments. If the taxpayer has questions about the balance due, follow instructions in table below:

There are three notices in the CP 141 series:

The CP 141 series notices are generated when an Exempt Organization (EO) return is received late and/or has missing or incomplete information.

Route all correspondence regarding CP 141 notices to the Ogden Accounts Management Center, EO Accounts MS: 6552. Refer to IRM 21.3.8.10, Account Issues - Tax Exempt/Government Entities (TEGE), and IRM 21.7.7.6.23, Exempt Organization Penalties, for additional information.

A CP 142, Tax Exempt Bonds, Late Filed Return, is generated when a Form 8038, Information Return for tax-Exempt Private Activity Bond Issues, Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues, or Form 8038-GC, Consolidated Information Return for Small Tax-Exempt Government Bond Issues, is filed late and a reason for the late filing is not provided.

Route all correspondence regarding CP 142, Tax Exempt Bonds, Late Filed Return, notices to the Ogden Accounts Management Center, EO Accounts MS: 6552. Refer to IRM 21.3.8.10, Account Issues - Tax Exempt/Government Entities (TEGE), and IRM 21.7.7.5.4.4, Tax Exempt Bond Correspondence and Processing Overview, for additional information.

A CP 143, Tax Exempt Bonds, Late Filing Accepted, is a manually generated notice that informs the filer the response they provided to IRS for filing Form 8038, Information for Tax-Exempt Private Activity Bond Issues, Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues, or Form 8038-GC, Consolidated Information Return for Small Tax-Exempt Government Bond Issues, late was accepted.

Route all correspondence regarding CP 143 notices to the Ogden Accounts Management Center, EO Accounts MS: 6552. Refer to IRM 21.3.8.10, Account Issues - Tax Exempt/Government Entities (TEGE), and IRM 21.7.7.7.4.4, Tax Exempt Bond Correspondence and Processing Overview, for additional information.

A CP 145, Notice Of Credit Elect, notifies the taxpayer of the amount of credit applied to the next taxable period when the amount differs from the taxpayer's requested amount by $1.00 or more.

This notice is issued when any of the following tax returns post with Computer Condition Code (CCC) E:

After researching IDRS, explain reduction in refund or credit-elect amount. Follow table below for resolution:

A CP 160, Business (BMF) Balance Due - Annual Reminder Notice, is issued to remind taxpayer of a balance due on a deferred account (status 23):

A CP 161, No Math Error, Balance Due (Except Form 1065), is issued to taxpayer as a first notice to notify them of tax, penalties, or interest due on any BMF return (except Form 1065) with a balance due of $1.00 or more and no math errors.

After researching IDRS, explain reason for the balance due. It may result from a missing payment or the assessment of penalties such as failure to file (FTF), estimated tax (ES), or dishonored check penalties:

A CP 162, Untimely Filing Penalty - Partnership, notifies the partnership that a penalty has been assessed for failure to timely file a complete Form 1065, U.S. Return of Partnership Income, or Form 1120S, U.S. Income Tax Return for an S Corporation. Refer to IRM 21.7.4.4.2.8.2, Small Partnership Penalty Abatement, and IRM 21.7.4.4.2.7, Partnership Penalties, for more information.

If Form 1065 or Form 1120S was filed late, incomplete, or both, do the following:

A CP 163, BMF Annual Reminder Notice - Overdue Taxes, is issued annually to remind the taxpayer of a balance due of Tax, Penalty and Interest on a module that has been in Currently Not Collectible (CNC) status (with closing code 12 or 24–32) for at least 65 cycles.

A CP 165, Penalty Assessed for Dishonored Check, notifies the taxpayer that a check was not honored by their bank.

Refer to IRM 20.1.10.7, IRC 6657 Bad Checks (Dishonored Checks or Other Forms of Payment).

A CP 166, Insufficient Funds on Direct Debit Installment Agreement, notifies the taxpayer that a direct debit installment agreement payment was dishonored due to insufficient funds.

Refer to IRM 20.1.10.7, IRC 6657 - Bad Checks (Dishonored Checks or Other Forms of Payment).

Letter 4010-C, Federal Unemployment Tax Act (FUTA) Certification- Proposed Increase to FUTA Tax, notifies the taxpayer of a proposed increase in tax to Form 940 based on state certification of credit information that differs from taxpayer's return.

CSR should refer to IRM 4.19.5.4.12, Customer Service Representative (CSR) Information, to assist callers.

Follow IRM 21.7.3.4, Unemployment Tax Procedures, when working CIS cases.

Refer to IRM 4.19.5.4.10, Undeliverables, when the 4010-C is returned to the IRS due to an incorrect address.

Letter 4011C, FUTA Certification - Proposed Decrease to FUTA Tax, notifies the taxpayer of a proposed decrease in tax to Form 940 based on state certification of credit information that differs from that on taxpayer's return.

CSR should refer to IRM 4.19.5.4.12, Customer Service Representative (CSR) Information, to assist callers.

Follow IRM 21.7.3.4, Unemployment Tax Procedures, when working CIS cases.

Refer to IRM 4.19.5.4.10, Undeliverables, when the 4010-C is returned to the IRS due to an incorrect address.

A CP 187, Annual Reminder Notice (Status 22 or 26 Accounts), is issued as an annual reminder notice of balance due BMF accounts in Status 22 and 26. A separate notice is issued on each module.

Follow guidance provided in IRM 21.3.1.4, Notice Resolution Actions Research. Transfer the call to ACS according to the TTG after researching status and providing payoff amount, if requested.

The CP 191 is an internal notification to the campus accounting to update the installment billing clerks file.

If response received for Form 706, United States Estates (and Generation-Skipping Transfer) Tax Return, forward to Estate and Gift Tax Operations, KCSPC, Stop 6052, 333 W. Pershing Rd. Kansas City, MO 64108-4302

A CP 207, Proposed Averaged FTD Penalty (amounts less than $75,000), Request for Correct Record of Federal Tax Liability (ROFTL) Information, is generated on Form 940, Form 941, Form 943, Form 944, Form 945 and Form 1042 tax modules when the Record of Federal Tax Liability (ROFTL) section of the return is incomplete, illegible or the total tax liability reported on the ROFTL does not equal the net taxes on the return. The CP 207 notifies the taxpayer to complete and return a ROFTL or IRS will assess an averaged FTD penalty. CP 207L is generated for averaged penalties of $75,000 or more.

Advise the caller to complete a ROFTL for the appropriate form identified in the notice and to either fax or mail it. Follow procedures in IRM 20.1.4.18, CP 207 or CP 207L Notices.

A CP 210, Examination (Audit) or Data Processing Tax Adjustment - Balance Due, Overpayment, or Even Balance, notifies the taxpayer of an Examination or Data Processing tax adjustment notice, resulting in overpayment of $1.00 or more or a zero balance. Also issued as a return settlement notice when penalties are assessed on overpaid modules. After researching IDRS, explain reason for the notice.

A CP 215, Civil Penalty - 500 and 600 Series, notifies the taxpayer a civil penalty was assessed.

Intentional Disregard Civil Penalty

A CP 220, Examination (Audit) or Data Processing Tax Adjustment - Balance Due, Overpayment, or Even Balance, is an adjustment notice from Exam or Data Processing tax, resulting in balance due, overpayment, or a even balance. The CP 220 is also issued as a return settlement notice when penalties are assessed on overpaid modules. After researching IDRS, explain reason for the notice. For resolution, refer to table in IRM 21.3.1.7.29, CP 210 Audit/DP Tax Adjustment.

A CP 225, Missing Payment Applied, is issued to advise taxpayer that a tax payment inquired about was located and applied to a specific account. This letter also advises taxpayer of a remaining balance due, a zero-account balance, or a refund issued. After researching IDRS, explain reason for the notice.

A CP 230, Combined Annual Wage Reporting/DP Tax Adjustment Amended Return Filed, notifies the taxpayer of a determination of refund due, because of a Combined Annual Wage Reporting (CAWR) adjustment made due to the taxpayer's amended return being filed and processed.

Advise taxpayer the refund amount is based on the response submitted to CAWR, amended return, and the comparison of the figures reported on employment tax return and information submitted on information returns. Figures were presented to taxpayer previously by the CAWR program via Letter 98-C, Wage Discrepancy per SSA; Information/Verification, or Letter 99-C, Letter of Employment Tax Problem (CAWR).

If taxpayer does not agree with refund, advise them to contact the processing center at the address indicated on the notice. Assist taxpayer in preparing response to issuing center.

A CP 238, Late Federal Tax Deposit (FTD) Educational Notice - No Penalty Charged, is issued to first time Form 941, Form 943, and Form 944 filers who did not deposit correctly. The CP 238 explains:

A Notice 931 is enclosed to explain the deposit requirement for Form 941. Refer to IRM 20.1.4, Failure to Deposit Penalty, for more information on deposit requirements and penalties.

A CP 240, CAWR/DP Tax Adjustment, notifies the taxpayer of an adjustment to the account when there is a discrepancy between information reported on the employment tax returns and the W–2, W–2G, or 1099–R forms submitted. This notice is a bill issued to taxpayer because of the Combined Annual Wage Reporting (CAWR) program.

After researching IDRS (BMFOLU) explain reason for the notice. Advise taxpayer that amount due is based on a comparison of figures reported on employment tax return with information submitted on information returns. The figures were previously presented to taxpayer during CAWR program. The bill is generated whether or not the taxpayer responded to the CAWR notice or correspondence issued if a discrepancy still existed. Late replies to the CAWR notice or correspondence would not have prevented the notice from being issued.

A Letter 99-C, Notice of Employment Tax Problem, is issued for an IRS-CAWR case to notify taxpayer of a discrepancy between information reported on the Federal employment tax returns Form 941, Employer’s Quarterly Federal Tax Return, Form 944, Employer’s Annual Federal Tax Return, Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, Form 945, Annual Return of Withheld Federal Income Tax, or Schedule H, Household Employment Taxes) and the Form W-2 submitted to SSA or the Form W-2 G, Certain Gambling Winnings or Form 1099–R, Distribution From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA, Insurance Contacts etc., submitted to the IRS. Refer to IRM 4.19.4.11, IRS-CAWR/SSA-CAWR - CSR Information.

Do the following:

A Letter 98-C, Wage Discrepancy per SSA; Information/Verification Requested, is issued on a SSA-CAWR case to notify taxpayer of a discrepancy between information reported on the employment tax returns and that reported on the Forms W-2 submitted to Social Security Administration (SSA), i.e., taxpayer is reporting more Social Security Wages, Medicare Wages and/or Federal Withholding tax on an employment tax return than is reported on Form W-2 or Form W-3.

Advise taxpayer:

Assist taxpayer in identifying the error (e.g., SSA did not receive all the Form W-2 and/or Form W-3, Transmittal of Wage and Tax Statements, for the EIN, taxpayer used two different TINs).

Assist taxpayer in preparing a response to CAWR unit of the issuing center. (Refer to IRM 4.19.4, CAWR Reconciliation Balancing, for more information on the CAWR program). Never transfer the taxpayer's call to the CAWR unit.

A CP 256V, Installment of CARES Act Deferred Social Security Taxes is Due (BMF), is the first courtesy reminder that Social Security taxes deferred under the CARES Act Section 2302 are due by December 31, 2021 and December 31, 2022. Refer to IRM 21.7.2.8, Deferred Payment of Social Security Taxes for 2020, for additional information.

The first installment amount, due December 31, 2021, is half the employer’s share of Social Security taxes that could have deferred, including any amount of the employee’s share of Social Security taxes deferred under Notice 2020-65 as modified by Notice 2021-11, minus all deposits and payments the IRS has received.

The second installment, due December 31, 2022, is the remaining unpaid deferred taxes.

CP 259 series notices (A - G) are issued from Master File on accounts that have not received a return to satisfy the filing requirement.

Refer to IRM 21.7.7.6.26, CP 259, CP 42X & CP 249 Entity Notices, for more information for Exempt returns.

A CP 260, Credit Reversal Adjustment, notifies the taxpayer of a credit reversal (e.g., erroneous payment posted and taken out, other credits allowed and then removed) or an adjustment to their account. After researching IDRS, explain reason for the notice.

A CP 267, No Math Error - Credit Offset Notice, notifies the taxpayer of possible misapplied payments and allows taxpayer to advise IRS of their correct application.

The CP 267 Notice requires a response and are worked on an expedite basis. After researching IDRS, explain tax deposit discrepancies and reason for overpayment. Refer to IRM 21.7.11.4.9, CP 267 or CP 268 - Notice of Excess Credit, for procedures.

A CP 268, Math Error - Credit Offset Notice, notifies the taxpayer of an error on return and possible misapplied payments resulting in an overpayment. It allows taxpayer the opportunity to advise IRS of validity of math error and proper application of credits. Refer to

Notice requires a response and are worked on an expedite basis. After researching IDRS, explain reason for the overpayment. Refer to IRM 21.7.11.4.9, CP 267 or CP 268 - Notice of Excess Credit, for procedures.

A CP 282, Notification of Possible Filing Requirement, Form 1065 and Form 1065-B, notifies the taxpayer of a possible requirement to file information returns and withhold tax. This notice is generated when a filer of Form 1065, U.S. Return of Partnership Income, or Form 1065-B, U.S. Return of Income for Electing Large Partnerships, checks a box on Schedule B, indicating they had foreign partners during the year. Refer to IRM 21.7.4.4.2.11, CP 282 Notice, Notification of Possible Additional Partnership Filing Requirements (Withholding Tax on Foreign Partners), for additional information and procedures for responding to taxpayer inquiries. Refer to IRM 21.8.2.16.1, CP 282 - Form 1065 for international cases.

A CP 289, Annual Installment Agreement Statement, is issued as an annual BMF notice. The notice shows all payments made for the year and an ending balance. It advises the taxpayer that this notice is not a bill. It also instructs the taxpayer to contact the IRS if:

The CP 208, Potential Credit Transfer Action Form 1041, is an internal notice. When Form 1041 posts with credit shown on the election line and the credit has not been transferred, a -P freeze generates. The freeze is released when the module balance becomes zero or debit status.

Refer to IRM 21.7.4.4.1.12.3, CP 208 Notice, Potential Credit Transfer Action Form 1041, for procedures.

The CP 224, Potential Qualification as a Personal Service Corporation, is issued to businesses who, based on the business activity described on the Form 1120 they filed, may qualify as a personal service corporation.

Refer to IRM 21.7.4.4.4.3.1, CP 224 Notice, Potential Qualification as a Personal Service Corporation, for procedures.

The BMF Underreporter (BUR) program is designed to review Form 1120, U.S. Corporation Income Tax Return series, and Form 1041, U.S. Income tax return for Estates and Trusts serues, for potential Underreported or missing income. BUR Operations is located in the Ogden Campus. The program compares the information reported on the Form 1120 and Form 1041 to the Information Return Master File (IRMF) which contains income documents, such as Form 1099, Schedule K-1, etc., submitted by payers.

BUR sends letters (Formerly CP notices) to Form 1120 and Form 1041 filers notifying them of the discrepancy between the information documents and what is reported on the income tax return. These letters are:

Letter 2531 is sent to the taxpayer as an inquiry, not a proposal of assessment. The letter is sent to a taxpayer to obtain information prior to the issuance of the Letter 2030.

The Letter 2030 is the BUR notice of proposed assessment relating to the underreporter issues on the Form 1120 and Form 1041

When the account has been selected to be worked by BUR, the account will display a TC 925. Process codes shown with the TC 925 will provide the status of the case as it goes through BUR processing. BMF Underreporter Process Codes are located in the Document 6209.

When a letter is issued, the BUR function puts a control on the module. IDRS research will show:

When there is a TC 925 and/or an open BUR control on the tax module, the following taxpayer correspondence must be routed to BMF-AUR to be worked:

BMF AUR tax assessment can be found on MFT 02 (Form 1120) or MFT 05 (Form 1041) accounts. A BUR assessment can be identified by reviewing the blocking series of the TC 290 adjustment. For Form 1120 the blocking series may be 55, 57, 58 or 59. For Form 1041 the blocking series will be 64 or 89.

If written correspondence, Form 1120-X or amended Form 1041 is received relating to a closed BUR assessment, take the following actions:

If TC 925 only shows Process Code 4030 on the account, do not refer case to BUR. Work the taxpayer’s issue following normal procedures.

If the taxpayer calls and they didn’t receive the letter or is requesting a copy of any of the letter, transfer the call to Extension 1827. If the call cannot be transferred, provide the caller with the BMF-BUR phone number and hours of operation. The BUR number is 877-571-4712. The hours of operation are from 9:00 a.m. – 5:00 p.m. local time.

BUR may send several other notices. These include:

For additional information on the BUR Program, refer to IRM 4.119.4, BMF Underreporter (BUR) Program.

IRC 965 imposes a transition tax on untaxed foreign earnings of foreign corporations with U.S shareholders. For more information, refer to IRM 21.5.13.2, IRC 965 Transition Tax Overview. The following section provides guidance for BMF CP notices that were created for IRC 965 processing and worked in the Ogden campus.

The CP 247A, CP 247B, and CP 247C inform the taxpayer that the IRS has received and processed their income tax return and they elected to pay their IRC 965 net liability in installments.

The CP 256, Annual IRC 965(h) Installment Notice, is issued annually to notify taxpayers who made a 965(h) election, of their IRC 965 installment payment amount and due date. The Ogden employee will advise the taxpayer to follow the instructions on the notice and pay the amount due. Failure to pay by the due date may result in a penalty, and the full amount of their net tax liability under IRC 965 may become due immediately, refer to IRM 21.5.13.2, IRC 965 Transition Tax Overview.

NMF notices will provide one of three numbers for the taxpayer to contact the IRS:

Notice numbers are shown in the bottom right-hand corner. The notice shows an "n" after the Taxpayer Identification Number (TIN).

Notices CP 403, Form 5500, First Delinquency Notice, and CP 406, Form 5500, Second Delinquency Notice, are return delinquency notices. These notices are issued to taxpayers with a filing requirement for Form 5500, Annual Return/Report of Employee Benefit Plan and inform the taxpayer of an overdue return.

CP 403 is the first notice and CP 406 is the final notice. A response is required.

Delinquency cases are placed on the Taxpayer Information File (TIF). Each case is retained on this file for a period determined by the date the last tax module was satisfied in the entity. The TIF is updated weekly with any satisfying transaction input during the week.

Resolve CP 403 and CP 406 issues as follows:

Refer to IRM 3.13.36, EPMF Account Numbers, for more information on CP 403 and CP 406.

The Patient Protection and Affordable Care Act, and the Health Care and Education Reconciliation Act of 2010 (collectively, the Affordable Care Act or ACA) has many key provisions including shared responsibility payments for certain employers.

Employer Shared Responsibility Payment (ESRP). Beginning calendar year 2015 and after, employers employing an average of 50 full-time employees or combination of full-time and full-time equivalent employees on business days in the prior year (i.e., number of employees during 2014 is used to determine liability for calendar year 2015) will be subject to the Employer Shared Responsibility provisions under IRC 4980H (added to the Code by the ACA) Form 1094-C and Form 1095-C are used to report information about offers (or non-offers) of health coverage and enrollment in health coverage to an employee by the employer. ESRP will not be self-reported by the taxpayer but will be assessed by an Exam function based on information reported to the IRS. Form 1094-C and Form 1095-C are used by Exam in determining whether an employer owes an ESRP.

Master File Tax Code (MFT) has been established to record assessments, abatements, and other account actions:

On MFT 43, the assessment posts as a TC 298 with a three-digit reference number of 240, which identifies the type of assessment. A TC 290 is input along with the TC 298. A TC 150 never posts to this module.

Prior to an assessment by Exam, various notices/letters will be sent to certain employers who have been identified as potentially being assessed an ESRP.

See IRM 20.2.11.14(1), Affordable Care Act (ACA), and IRM 5.19.4.2.2, Affordable Care Act (ACA) - Employer Shared Responsibility Provision (ESRP) §4980H, for general information.

The Letter 4912, Tax Compliance Notice of Proposed Escalation, notifies the taxpayer that they are not in compliance with their individual and/ or business federal tax filing and payment obligations. It advises the taxpayer that we are proposing to escalate their non-tax compliance case to the Office of Professional Responsibility. Advise the taxpayer to follow the instructions in the letter. To assist the taxpayer in resolving issues, refer to IRM 5.19.1, Balance Due to assist the taxpayer in resolving issues.

The Letter 4912-A, Proposing Denial of Participation into Annual Filing Season Program, notifies the taxpayer that they are not in compliance with their personal federal tax filing and payment obligations. It advises the taxpayer that we are proposing to deny their participation in the Annual Filing Season Program. Advise the taxpayer to follow the instructions in the letter. To assist the taxpayer in resolving balance due or filing delinquency issues, transfer the call to ACS according to the TTG.

Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like "real" currency i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance. Virtual Currency may be used to pay for goods or services, or held for investment.

The Letter 6173, Virtual Currency Soft Notice, was issued to taxpayers that have, or had, one or more transactions containing virtual currency, and may not have met their tax filing and reporting requirements for the transactions. This includes transactions involving crypto-currency and non-crypto virtual currencies.

The letter states that virtual currency accounts and/or transactions may be taxable, and that the IRS has no record of receiving a return with virtual currency information. It also advises taxpayers to file the applicable form or schedule to report virtual currency accounts, or provide a statement of facts explaining why they believe all tax and reporting requirements related to virtual currency accounts have been met. It provides the taxpayer with a separate address for statements and/or correspondence and for returns/ amended returns.

For statements and/or correspondence, the mailing address is:

The letter instructs the taxpayer to write the phrase “Letter 6173” at the top of the amended return and mail it to the following address:

The letter also provides a unique hot line number for taxpayers to call if they need to speak to someone concerning this letter. That hot line number is 737-880-7990.

Amended returns are received and centralized at the Philadelphia Campus under IDRS Number 0543021453 for domestic claims and IDRS Number 0534026194 for international, and scanned in under CIS Category code SPC 2. In some instances, statutes may be extended as needed according to local procedures established between Philadelphia AM and LB&I. For instructions on adjusting these cases, see IRM 21.5.3 General Claims Procedures for more information.

If a call is received on the toll-free line, advise the caller to respond to the notice or provide the caller with the hot line number 737-880-7990. Advise the taxpayer that this is not a toll-free number.