The following policy statements provide authority for this IRM:

Program Effectiveness: Program effectiveness is measured through:

The following table lists acronyms commonly used in this IRM. For a comprehensive listing of IRS acronyms, see the Acronym Database.

Related resources for this IRM include, but are not limited to:

Before taking any account action, transferring a call, or reassigning a case to IDTVA, complete all required account research. The initial employee must identify the taxpayer's issue and research the account, including Account Management Services (AMS), to resolve routine account issues before determining whether to reassign the case to IDTVA for potential identity theft (IDT).

Refer the case to IDTVA if any of the following conditions apply:

If a multiple control exists with specialized inventory outside your scope (e.g., IDT1, IDT3, IDT8) and:

Use the following definitions and referenced IRM sections to identify the correct account issue. If any of the following conditions apply, do not treat the case as identity theft. Follow the applicable IRM procedures.

Research both the valid and invalid sides of each identified TIN (for example, primary, secondary, or alternate TINs). A return posted to the invalid side of the Common Number (CN) alone does not establish identity theft. Conduct further research to verify the return was not processed to the invalid side of the TIN as a result of an error on the return or name changes that have not yet been provided to the IRS by the Social Security Administration (SSA):

When a Name Control mismatch has occurred as a result of taxpayer, preparer, or typographical error, and there is no indication the information included on the return is questionable (i.e., the income is verifiable, return information is consistent with filing history, etc.), refer to IRM 21.6.2.4.2, Resequencing Accounts, and its subsections.

If additional research is needed to locate the taxpayer’s TIN, use CC NAMES or CC NAMEI to input the taxpayer’s name and address information to search for a TIN. To do a broad search, input the taxpayer’s name and only the first 3 digits of their zip code. The results include taxpayer information from areas surrounding the current address. Consider the following possibilities when conducting research using CC NAMES or CC NAMEI:

Refund inquiry – The non receipt of a refund does not automatically warrant an ID theft referral. Refer to the applicable procedures in IRM 21.4, Refund Inquiries.

The presence of TPP indicators does not automatically mean the taxpayer is a victim of identity theft. TPP selects returns that require taxpayer authentication. Review the account, including AMS, to determine whether the TPP issue has been resolved.

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After completing all required research and applicable procedures, determine whether another treatment stream applies. If no other treatment stream applies and account discrepancies indicate possible identity theft, refer the case to IDTVA.

Adjustment requests involving tax, penalty, interest, or other issues are received in two forms:

Administrative waivers and statutory exceptions may be granted:

IRM 21.1.3.20, Oral Statement Authority, explains oral statement authority for Accounts Management. This subsection provides the procedures Accounts Management must follow when working oral statement issues.

If an address change is necessary and the taxpayer requests the address change using an oral statement, the address change may be input into IDRS based on Rev. Proc. 2010-16, Rev. Proc. 2010-19, IRB 664. Refer to IRM 21.1.3.20.1, IMF and BMF Oral Statement Address Changes for further information.

A signed amended return is not required if one of the following conditions applies:

The following actions require a written request:

Use the taxpayer’s written request as the source document. See the following IRMs for additional guidance:

If a taxpayer's request requires written documentation or supporting evidence, determine whether the taxpayer can fax the documents while you are on the telephone. Use the following table.

Some adjustments completed using oral statement authority require source documents (SD):

Request that taxpayers provide the documentation required for adjustments listed in paragraph (1). The taxpayers may fax the documentation. Provide your fax number, including area code. See IRM 21.5.2.4.3, Adjustments Requiring an Amended Return or Taxpayer Documentation, and also refer to IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, for further instructions.

If the input is not completed with an oral statement, input the adjustment with "SD" , "NSD" , or "SDR" in the remarks field (or Y, N, or R on the Command Code (CC) ADJ54 screen).

Use the remaining positions in the remarks field to briefly explain the reason for the adjustment or credit transfer.

Briefly describe the reason for the adjustment (for example, "credit transfer" ). Also document the applicable letter or other supporting justification, as shown in the following table:

Suppress notices using the method appropriate for the notice type and issue. Use one of the following methods:

See IRM 20.1, Penalty Handbook, for detailed penalty guidance. Advise the taxpayer whenever a penalty may be assessed. Explain why the penalty was asserted or assessed. See IRM 20.1.1.4, Methods of Appealing Penalties, for penalty appeal procedures.

Send copies of all supporting documentation for each assessment over ≡ ≡ ≡ ≡ ≡ ≡ ≡ when the taxpayer did not fully pay the liability in advance to:

Refunds of ≡ ≡ ≡ ≡ ≡ ≡ ≡ dollars or more do not generate systemically (TC 846). Prepare a manual refund using Form 3753, Manual Refund Posting Voucher. See IRM 21.4.4.5.2, Preparation of the Form 3753, Manual Refund Posting Voucher. If the taxpayer submitted Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, see IRM 3.17.79.3.10.1, Direct Deposits of Tax Refunds of $1 Million or More, or Due to Financial or International Hardships.

Prepare Form 8485 as follows. Complete fields 1 through 4,17, and 18, and the following unnumbered boxes at the top of the form:

Complete all other fields as applicable:

When a module is restored from the Retention Register, the system sets "G" and "I" freezes on the module. These freezes prevent MF from computing Failure to Pay (FTP) penalty and Interest.

Assess penalties and interest when appropriate.

Use caution when entering hold codes (HC). Some rules to remember are:

The HC field on the Command Code ADJ54 is required. If the adjustment does not otherwise require a HC, input a HC "0" . For more information, see Hold Codes, in Document 6209, Section 8C.2-3, Master File Codes.

Use Posting Delay Codes (PDCs) one through six to control the posting sequence when multiple transactions are required to adjust an account. See IRM 21.5.8, Credit Transfers, for instructions on using posting delays of one through six cycles for credit transfers.

PDCs apply to IMF, BMF, and IRAF transactions in the following IDRS programs:

Resolve al identified l issues before closing the case. For telephone contacts involving collection issues, follow IRM 5.19.1, Balance Due, to collect any balance due. If missing returns are involved, see IRM 5.19.2, Individual Master File (IMF) Return Delinquency. For correspondence cases, follow procedures in IRM 21.3.3, Incoming and Outgoing Correspondence / Letters. Review all taxpayer correspondence to verify that all required adjustments have been completed and the taxpayer’s issue has been resolved.

Take any of the following actions as necessary:

Close the control base when the case is resolved.

The IRS issues an adjustment notice when it takes action on a taxpayer's account. The notice (CP 21A, Data Processing Adjustment Notice, or CP 22A, Data Processing Adjustment Notice) explains the action taken.

Enter a source code (SC) and at least one reason code (RC) on Command Code (CC) ADJ54 when you input:

Use Blocking series to identify the type of adjustment being processed. See Adjustment Blocking Series, in Document 6209, IRS Processing Codes and Information, Section 4.14, for the blocking series used with account adjustments.

Use these procedures to reprocess returns that posted to the wrong account or tax period. Before obtaining the original return, complete all applicable research and follow the required procedures for reprocessing the return to the correct account or tax period. This may include recovering an erroneous refund. See IRM 21.4.5, Erroneous Refunds. The return(s) may involve the current or a prior tax year and may be subject to statute or penalty considerations. Before requesting a copy of the return, determine whether the return can be reprocessed using the IDRS command codes described in IRM 21.5.2.4.23.11, Reprocessing "Dummy" Returns.

If you identify an IMF return that must be reprocessed while staffing the AM toll-free telephone lines, complete any required actions before preparing a Form 4442 /e-4442 Inquiry Referral. Advise the taxpayer that the IRS will contact them within 30 days. Forward the completed Form 4442 /e-4442 Inquiry Referral to the campus AM paper function within your directorate (unless IRM specific procedures apply). If your campus AM paper function no longer has Submission Processing, forward the Form 4442 /e-4442 Inquiry Referral as shown below:

If a return unposts or posts to a incorrect account, reprocess it to the correct account. If an incorrect refund was issued from the account,see IRM 21.5.2.4.23.10, Moving Refunds, and IRM 21.4.5, Erroneous Refunds.

Correct the following conditions before reprocessing the return to prevent unprocessable conditions identified during original processing. If an unprocessable condition remains, Submission Processing returns the document to the originating employee for correction. Before forwarding the return to Submission Processing, verify the following:

After completing all required edits, forward the return to the Batching function for reprocessing as an original return. If the return does not post, Submission Processing returns it to the employee who submitted it for reprocessing.

Control each return or block of reprocessable documents entered through the Batching function by using Form 3893, Re-Entry Document Control, for IMF cases or a Form 13596, Reprocessing Returns, for BMF. Complete these forms and place them on the top of the documents being reprocessed. See Exhibit 21.5.2-1, Preparing Form 3893, Re-Entry Document Control, and Exhibit 21.5.2-2, Preparing Form 13596 – Reprocessing Returns, for complete instructions on preparing these forms.

When reprocessing previously processed documents, use the following guidance:

BMF only – Consider FTD penalties carefully before the following returns are reprocessed:

Refer to IRM 20.1.4, Failure to Deposit Penalty, for more information.

Forward source documents in separate folders by document type to campus files within five (5) workdays of input.

Prepare a separate adjustment folder for each input date and document type. Label each folder with:

Insert source documents into the folder immediately after completing the IDRS adjustment. If you discover a document was omitted, do not destroy it. Obtain the DLN and send the document to Campus Files so it can be associated with the case file.

Individuals use Schedule LEP, Request for Change in Language Preference, to request certain written IRS correspondence in another language. See IRM 22.30.1.8.15.4.1, Improving Access to Services for Persons with Limited English Proficiency (LEP) and Return Preparation Service, for background information on Schedule LEP. Taxpayers can request this preference change:

Process the request using IDRS CC REQ77 on CC ENMOD. Input a TC 971, Action Code 192, using the correct Miscellaneous Code field based upon the taxpayer's selection in the table below.

Individuals use Form 9000, Alternative Media Preference, to request certain written IRS correspondence in accessible format, such as large print, Braille, or audio. Taxpayers can request this preference change:

Process the request using CC REQ77 on CC ENMOD. Input a TC 971, Action Code 592, using the correct Miscellaneous Code field based upon the taxpayer's selection in the table below: