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21.2.1  Systems (Cont. 1)

21.2.1.33  (10-01-2007)
ICCE CC VPARS

  1. CC VPARS (Voice Processing Account Referral Screen) displays taxpayer account information and a description of the error the taxpayer encountered in an automated telephone system. The voice processing message section of the screen gives user friendly messages to indicate where the caller defaulted or exited the application.

  2. New calculated data fields on a screen show the total TDA and TDI yield score (Internal Use Only), a total of balance due modules and a total of assessed balances.

  3. To request CC VPARS:

    1. Enter the TIN from the call referral data on the tele-set display.

    2. Ask the caller to restate their TIN for verification and for Quality Review purposes.

  4. Continue the taxpayer contact from point of default using existing IRM procedures, including authentication probes, if necessary.

21.2.1.34  (10-01-2006)
ICCE /ENMOD History Items

  1. History items appear on ENMOD for actions taken by ICCE applications. The ICCE identifying IDRS number is 099 after the Campus two-digit number (e.g., 29099XXXXX). The last five digits are systemically generated.

  2. Transaction Code 016 (Miscellaneous Change Entity Code) identifies that a PIN was established. A second TC 016 indicates a PIN change. Other activities include issuing letters, IAGRE, and establishing installment agreements.

    Note:

    Only the taxpayer knows his/her PIN number (It does not appear on the tax module).

  3. A three-digit route code (agent message numbers) appears when a call is routed to a CSR. CC VPARS shows the literal meaning of the route code.

  4. By using the history information on ENMOD, VPARS and TXMOD, you can track the taxpayer’s actions during the interactive process.

21.2.1.35  (10-01-2016)
ICCE Management Action Reports (MAR) (Telephone and Internet)

  1. Management Action Reports (MAR) generate when transactions do not post to IDRS due to system/network problems (e.g., IDRS application down) or account conditions beyond design for the following applications:

    • Voice Balance Due

    • VPPIN

    • Refund Inquiry

    • Transcript

    • IRFOF (Internet)

    • Online Payment Agreement (Internet)

    • Secure Access eAuthentication

  2. The Planning and Analysis (P&A) staff determines who, within the directorate, works the MAR. The MAR Directorate Assignments are as follows:

    Telephone Sites
    Account Type MAR Type Assignment
    SB/SE ACS (IMF) Update ACS Levy Sources, ACS IA Confirmation Letter, Revised ACS IA Letter Ogden
    SB/SE AM (IMF) Extension Confirmation letters, IA Confirmation Letters, IA Revised Letter, PIN Update Request, Transcript Request, Refund Trace CHCKL Request, Refund Trace LETER Request Memphis – SB/SE
    W&I ACS (IMF) Update ACS Levy Sources, ACS IA Confirmation Letter, Revised ACS IA Letter Fresno
    W&I AM (IMF) Extension Confirmation letters, IA Confirmation Letters, IA Revised Letter, PIN Update Request, Transcript Request, Refund Trace CHCKL Request, Refund Trace LETER Request Fresno
    Internet Sites  
    Account Type MAR Type - (IMF & BMF) Assignment
    SB/SE ACS (IMF& BMF) ACS Levy Sources, ACS Extension Confirmation Letter, ACS IA confirmation letters, ACS History Items, ACS Pending IA Transactions, ACS control bases , ACS IA Letter Revised Internet – SB/SE
    SB/SE AM (IMF& BMF) Entity Change due to Electronic IA, Tel. # Change due to Electronic IA, Levy Sources, Extension Confirmation Letter, IA confirmation letters, History Items, Pending IA Transactions, Control bases, IA Letter Revised, PIN update request Internet – SB/SE
    Entity Change due to undeliverable refund, Refund Trace CHKCL request Internet – Philadelphia
    W&I ACS (IMF) ACS Levy Sources, ACS Extension Confirmation Letter, ACS IA confirmation letters, ACS History Items, ACS Pending IA Transactions, ACS control bases , ACS IA Letter Revised Internet – W&I
    W&I AM (IMF) Entity Change due to Electronic IA, Tel. # Change due to Electronic IA, Levy Sources, Extension Confirmation Letter, IA confirmation letters, History Items, Pending IA Transactions, Control bases, IA Letter Revised, PIN update request Internet – W&I
    Entity Change due to undeliverable refund, Refund Trace CHKCL request Internet - Philadelphia
  3. A designated person is required to retrieve the reports on a daily basis and manually input the necessary action that the system failed to generate as indicated on the report, by the next business day. The designated person should confirm that the failed transactions were not completed systemically before processing manually.

  4. The MAR includes the TIN, MFT, Business Operating Division (BOD) and tax period, along with the needed correction for each application.

    Note:

    The BOD dictates which customer response telephone number is used on the taxpayer letters, except for Secure Access eAuthentication transactions.

  5. MARS Corrective Action Needed:

    1. For full pay and installment agreements (W&I and SB/SE) processing, the paragraph number and fill-in data indicates a manual generation of Letter 3217C, Installment Agreement Accepted; Terms Explained, or Letter 2273C, Installment Agreement Acceptance & Terms Explanation.

    2. For PIN (Memphis W&I and SB/SE) processing, the paragraph letter and fill-in data indicates the manual generation of Letter 2940C, VRU Request for Personal Identification Number (PIN).

    3. For Refund Trace CHKCL (Memphis W&I and SB/SE) processing, refer to IRM 21.4.2.4.16.1, ICCE Refund Trace Reports.

    4. For Transcripts (Memphis W&I and SB/SE) processing indicates a request for Form 4506, Request for Copy of Tax Return with manual generation of a Letter 2941C, VRU Request For Form 4506.

    5. For IRFOF (Philadelphia) refer to IRM 21.4.2.4.17, Payment Claims and Enhanced Reconciliation (PACER) and Treasury Check Information System (TCIS).

    6. For Online Payment Agreement (Internet W&I and SB/SE) processing, refer to IRM 5.19.1.5.8.1, OPA Management Action Reports (MAR).

21.2.1.36  (10-01-2006)
ICCE Payment Report

  1. The Payment Report lists each account for which an installment agreement has been accepted. The daily reports details the agreement type, duration, amount owed, payment date and monthly payment amount, as well as a summary of average duration, average amount owed and total accounts receivable.

21.2.1.37  (10-01-2006)
ICCE Undeliverable Letters

  1. Forward ICCE undeliverable letters, identified by 099 in the Employee Identification Number on the letter (e.g., 29099xxxxx), to Customer Service for resolution.

  2. See IRM 21.3.3, Incoming and Outgoing Correspondence/Letters for instructions for undeliverable items.

21.2.1.38  (08-14-2009)
e-File Services (eFS) System

  1. The e-File Services (eFS) System offers several methods for filing taxes and transferring funds electronically.

  2. eFS uses several multi-functional Electronic Filing Systems (EFS) to receive and process individual and business returns.

  3. The following table shows the returns and systems.

    Return System
    Form 1040 (Series)
    • Online Filing Program

    • e–file Practitioner Program

    • FEDERAL/STATE e–file Program

    Form 944 Form 944 online filing & Form 944 e-file XML (& MeF starting in January, 2014)
    Form 941, Form 941-PR, Form 941-SS Form 941 e–file Program, e-file XML and Form 941 online.(& MeF starting in January, 2014)
    Form 940, Form 940-PR Form 940 e-file and Form 940 online Filing Programs (& MeF starting in January, 2014)
    Form 943, Form 943-PR MeF
    Form 945 MeF
    Form 1065 Form 1065 Electronic Filing Program
    Form 1041 Form 1041 MeF
    Form 1041 (Fiduciary) FEDERAL/STATE FIDUCIARY Program
    IMF e-file Processing sites for Processing Year 2010 PSPC, AUSPC, KCSPC, FSPC, and ANSPC.
    BMF e-file Processing sites for Processing Year 2010 CSPC and OSPC

21.2.1.39  (10-01-2015)
E-file Form 1040 Series

  1. Taxpayers may file returns through authorized IRS e-file providers, Electronic Return Originators (EROs). EROs transmit returns via a third party. In some cases, the ERO may perform both the ERO function and the transmitter function.

  2. The return may be prepared by the taxpayer, a tax professional or an ERO. Tax professionals may also be EROs, depending upon the functions performed.

  3. Taxpayers who file electronically using tax preparation software or who file through a tax professional are required to use a Personal Identification Number (PIN) to sign their returns. Taxpayers create their PINs using any five digits except all zeroes. If authorized by the taxpayer, the taxpayer’s PIN may be generated by the software or entered by the Electronic Return Originator (ERO). If the return is filed using the Self-Select PIN method, the taxpayer must also provide their Date Of Birth (DOB) and one of the following:

    1. Prior year adjusted gross income (AGI). The AGI amount may not be from an amended return, a corrected amount from a math error notice, or other changes made during IRS processing.

    2. Prior year self-selected PIN. The prior year self-selected PIN is the five digit PIN they used to sign their prior year tax return.

    3. Electronic Filing PIN (EFP) for authentication. The Electronic Filing PIN is an IRS generated five digit number. It is used as an alternate authenticator if the prior year AGI or prior year PIN information is unavailable.

    See IRM 3.42.5.9.1.1, "Self Select PIN Method" and IRM 3.42.5.9.2, Form 1040 Online Filing for information to answer general PIN questions.

  4. The Practitioner PIN method is another signature option for taxpayers who use an IRS e-file provider to prepare their tax returns. This option is used in transmitting Forms 1040, 1040A, and 1040EZ as totally paperless electronic returns. A Form 8879 , IRS e-file Signature Authorization, must be completed for all returns filed using the Practitioner PIN method. Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, Application for Extension of Time To File U.S. Income Tax Return must be completed for Forms 4868 filed using the Practitioner PIN method of filing when there is an Electronic Funds Withdrawal (EFW). Information on the requirements for using the Practitioner PIN method can be found in IRM 3.42.5.9.1.2, Practitioner PIN Method. In addition, the following web site can be used to answer general PIN questions: https://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Practitioner-PIN-Method-for-Forms-1040-and-4868-Modernized-e-File.

  5. The Self-Select PIN is the only IRS e-file signature method available to taxpayers who file a federal individual income tax return using online tax preparation software. This new requirement is to promote a paperless and secure method of signing individual returns electronically. Taxpayers choosing to electronically prepare and file their return using an online software package will be required to use the Self-Select PIN method as their signature. The Taxpayer selects five numbers (except all zeros) to enter as their electronic PIN signature. On a joint return, both spouses are required to enter a PIN as their electronic signature.

  6. Who is eligible to electronically sign using the Self-Select PIN signature method?

    • Taxpayers filing form 1040, 1040A, 1040-EZ 1040-SS(PR).

    • Taxpayers who did not file for Tax Year 2011, but have filed previously.

    • Taxpayers who are age 16 or older on or before December 31, 2014, who have never filed a tax return.

    • Primary taxpayers under age 16 who have filed previously.

    • Secondary taxpayers under age 16 who have filed in the immediate prior year.

    • Military personnel residing overseas with APO/FPO addresses.

    • U.S. citizens and resident aliens residing in the U.S. Possession of Puerto Rico or with foreign country addresses.

    • Taxpayers who are filing on behalf of deceased taxpayers.

  7. Taxpayers required to file the following forms, which must be attached to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return:

    • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes ( or equivalent contemporaneous written acknowledgement )

    • Form 2848, Power of Attorney and Declaration of Representative (or POA that states that the agent is granted authority to sign the return.)

    • Form 3115, Application for Change in Accounting Method

    • Form 3468, attach a copy of the first page of NPS Form 10-168A, Historic Preservation Certification Application (Part 2 - Description of Rehabilitation), with an indication that it was received by the Department of the Interior or the State Historic Preservation Officer, together with proof that the building is a certified historic structure (or that such status has been requested)

    • Form 4136, - attach the Certificate for Biodiesel and, if applicable, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller

    • Form 5713, International Boycott Report

    • Form 8283, NonCash Charitable Contributions, Section A (if any statement or qualified appraisal is required) or Section B., Donated Property, and any related attachments (including any qualified appraisal or partnership Form 8283)

    • Form 8332, Release / Revocation of Release of Claim to Exemption for Child by Custodial Parent (or certain pages from a divorce decree or separation agreement, that went into effect after 1984 and before 2009) (see instructions)

    • Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities

    • Form 8864, Biodiesel and Renewable Diesel Fuels Credit - attach the certificate for Biodiesel and, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller

    • Form 8949, Sales and Other Dispositions of Capital Assets, (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949

  8. Who is not eligible to electronically sign using the Self-Select PIN method?

    • Taxpayers under age 16 who have never filed.

    • Secondary Taxpayers (spouse) under age 16 who did not file in the immediate prior year.

    • Taxpayers that file Form 1040-NR.

    Note:

    The Form 8453, U.S. Individual Tax Transmittal for an IRS e-file Return, will now be used to submit all required attachments to both online and practitioner prepared individual income tax returns.

  9. If the taxpayer does not have their tax return information available, they may call 1-800-829-1040 to request the information. If they can provide taxpayer authentication information to the Customer Service Representative, the tax information will be given over the telephone or a free transcript can be requested. Taxpayers who use Self-Select PIN are not required to complete or mail Form 8453-OL to the IRS.

    • If the taxpayer is calling to request their AGI, determine if it is needed for e-filing purposes. If it is, then you must provide the taxpayer with the original AGI from the prior years’ return.

    • Command Code (CC) RTVUE and/or CC TRDBV or the Return Review Display (RRD) system on the Employee User Portal (EUP) must be used to provide this information, as original filing information is available regardless of subsequent adjustments or math errors.

      Caution:

      If there are multiple returns for a tax year, CC RTVUE will show multiple tax returns for that year. The returns are in DLN order and the TC 150 may not be the first return shown. Input 00X where X is the number of returns, e.g., If the TC 150 has a higher DLN than the TC 976, the TC 976 will be on CC RTVUE first as 001 and the 150 would be 002.

      Caution:

      CC TXMOD and CC IMFOL will show the AGI as adjusted or corrected, NOT as filed

    • Special Circumstances: If the taxpayer filed their prior year's tax return after Cycle 50, using the ECC-MTB posting cycle, they should enter zero (0.00) for their prior year AGI. If the taxpayer's last year AGI was negative, they must enter the amount as a negative number. See IRM 3.42.5.9.1.1(3), Self-Select PIN Method. If the taxpayer has not filed their prior year return, they should enter zero (0.00) for their prior year AGI.

  10. Use the RRD system on EUP to assist taxpayers with rejected returns and other e-file inquiries.

21.2.1.40  (10-01-2016)
E-file 1040 Series Online Filing

  1. The taxpayer may use tax preparation software bought off-the-shelf or available by electronic transmission to create an electronic income tax return using a personal computer Internet connection. A taxpayer may file up to five returns electronically with one software package.

  2. The online company will transmit online returns from the taxpayers to the appropriate Submission Processing Campus within 24 hours; retrieve the taxpayer acknowledgement and provide the acceptance or rejection notification to the taxpayer.

  3. Each taxpayer is required to use a Self-Select Personal Identification Number (SSP) or the Adjusted Gross Income (AGI) from the prior year return (see paragraphs 9 and 10 below) to sign his/her e-file online return.

  4. Taxpayers choosing to electronically prepare and file their return using an online software package will be required to use the Self-Select PIN method as their signature. The taxpayer selects five numbers (except all zeros) to enter as their electronic signature. As part of the authentication process, the taxpayer has the option to choose between two “shared secrets” or an Electronic Filing PIN (EFP).

  5. The shared secrets are the original prior year Adjusted Gross Income (AGI) or prior year self-selected PIN. The prior year self-selected PIN is the five digit PIN the taxpayer used to electronically sign their previous tax year e-file return. The online filer has to enter their date of birth and one of the following:

    • Prior year AGI or

    • Prior year SSP or

    The taxpayer may enter all three, but only one has to match for successful authentication.

  6. The taxpayer cannot use the AGI from an amended return, a corrected amount from a math error notice or other changes made during IRS processing. If the taxpayer does not have his/her original AGI, he/she may call toll-free, 1-800-829-1040 to request the original figure. See IRM 3.42.5.9.1.1(3), Self-Select PIN Method for further instructions if AGI is a negative amount.

  7. If the taxpayer is calling to request the prior year AGI or SSP in order to e-file, authenticate the caller following procedures in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. If the taxpayer fails high risk disclosure, follow procedures in IRM 21.2.1.40.2, Taxpayer Fails High Risk Disclosure during AGI Request. When the call is identified by the IAT disclosure tool as having identity theft involvement and needs a transfer as directed in IRM 21.2.1.40.1, E-file 1040 Series Online Filing with Prior Year Identity Theft, you can bypass disclosure and inform the taxpayer you are transferring their call to an assistor who will authenticate them on the account and provide them with a special number to file their tax return electronically. See IRM 21.2.1.40.1(4), E-file 1040 Series Online Filing with Prior Year Identity Theft, for transfer procedures.

    Note:

    The AGI or SSP can be provided to either spouse over the telephone only for the year the joint return was filed if he/she meets the disclosure requirements above.

    Caution:

    If the IAT disclosure tool displays an identity theft indicator see paragraph (11) below.

  8. Use the "What’s my AGI" portion of the IAT Disclosure tool to provide the taxpayer with the prior year AGI or SSP. IDRS CC RTVUE or CC TRDBV can also be used if the tool is not available.

    Caution:

    If there are multiple returns for a tax year, CC RTVUE will show multiple tax returns for that year. The returns are in DLN order and the TC 150 may not be the first return shown. Input 00X where X is the number of returns, e.g., If the TC 150 has a higher DLN than the TC 976, the TC 976 will be on CC RTVUE first as 001 and the 150 would be 002.

    Note:

    If the tool does not provide the SSP, explain to the taxpayer that the SSP information is not currently available and the prior year AGI is all they need to validate and sign the return.

    Note:

    IDT victims will also need an Identity Protection PIN (IPPIN).

  9. The IAT Disclosure Tool will alert users to conditions on modules of accounts on which identity theft (IDT)is a factor and/or suspected and documented. A list of identity theft action codes can be found in IRM 25.23.2.16, Tracking and Reporting Identity Theft Cases - Identity Theft Indictors. See IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing, for more detailed information on identity theft action codes. The IAT Disclosure Tool will display "IDT Indicator" in the alert box. See IRM 21.2.1.40.1, E-file 1040 Series Online Filing with Prior Year Identity Theft, for special handling procedures.

21.2.1.40.1  (05-02-2016)
E-file 1040 Series Online Filing with Prior Year Identity Theft

  1. The IAT Disclosure Tool will alert users to conditions on modules of accounts on which identity theft is a factor and/or suspected and documented. A list of identity theft action codes can be found in IRM 25.23.4.3, Identity Theft General Research. See IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing, for more detailed information on identity theft action codes. The IAT Disclosure Tool will display "IDT Indicator" in the alert box.

    Caution:

    After securing the SSN and identifying the account as having identity theft as a factor do not complete the disclosure process and do not provide the Adjusted Gross Income (AGI) or Self-Select PIN (SSP).

  2. Taxpayers affected by identity theft will not be able to provide their immediate prior year AGI to file their current year return. Taxpayers may be affected by identity theft whether they filed for the prior year or not.

  3. Accounts identified where identity theft is a factor can be transferred prior to performing disclosure by advising the taxpayer Your call will be transferred to an assistor who will authenticate you on the account and provide you with a special number to file your return electronically..

    Caution:

    Do not transfer the call unless the issue is regarding immediate prior year AGI or SSP and the IDT marker is present. Follow normal procedures on all other contacts when the IDT marker is present.

  4. Transfer the call to extension 92161 for English or 92162 for Spanish; for sites using Infrastructure Upgrade Project (IUP) numbers, use 1161 for English or 1162 for Spanish. If you addressed an issue and performed disclosure prior to addressing the prior year AGI issue, apologize to the caller prior to the transfer and explain that due to the presence of an identity theft marker on the account the next assistor will need to cover the authentication process prior to providing the special number for them to file electronically.

    Exception:

    International assistors at the Philadelphia site are not allowed to transfer calls per IRM 21.8.1.1.4(2), Web Sites and Telephone Numbers. In this situation (and only this situation) Philadelphia International assistors would need to perform the procedures normally designated to the AM IPSU function. Follow the steps described in IRM 25.23.3.2.3.1, Responding to Calls related to E-filing, Prior Year AGI and Identity Theft - App 161/162 only.

21.2.1.40.2  (10-01-2016)
Taxpayer Fails High Risk Disclosure during AGI Request

  1. Caution: Take the following actions if the caller is both requesting the AGI and fails High Risk Disclosure. For all other disclosure failures, high risk or standard, follow normal procedures.

    Note:

    These procedures would not apply to first time filers.

    1. Using the IAT Disclosure Tool, check the “Not Authorized” check box.

    2. The tool will automatically generate a TC 971 AC 504 with an SPCL1 code on IDRS using CC REQ77. This code is used for tracking accounts with at least one incident of high risk disclosure failure. The NSD notation will show “Failed High Risk Disclosure”. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Verify this information, then click the “Transmit” button on the Disclosure tool to complete the transaction. If the information is incorrect, press the “Cancel” button.

    3. End the phone call, using the following script (which will appear in the IAT Disclosure Tool): "It appears that you are not authorized to receive information on this account. I cannot discuss information with you. However, I can accept information from you."

    4. If appropriate, advise the caller: "Any response will be sent to the taxpayer at the taxpayer’s address of record."

  2. If the account has been marked as "Not Authorized " on a previous call, a notification will show in the "Alerts" section of the Disclosure Tool. If the alert appears in the box, take the following steps:

    1. Complete high risk disclosure. If the taxpayer successfully passes, follow normal procedures.

    2. If the taxpayer fails authentication, use IDRS to verify that the previous TC 971 AC 504 with SPCL1 has been input.

    3. When the "User Transmit Required" window appears, click the "Cancel" button.

    4. End the phone call, using the following script (which will appear in the IAT Disclosure Tool): "It appears that you are not authorized to receive information on this account. I cannot discuss information with you. However, I can accept information from you."

    5. If appropriate, advise the caller: "Any response will be sent to the taxpayer at the taxpayer’s address of record."

    6. Input a narrative on AMS per IRM 21.1.3.2.3(3), Required Taxpayer Authentication.

21.2.1.41  (10-01-2016)
FEDERAL/STATE e-file

  1. Federal/State e-file is available in 40 states plus the District of Columbia and New York City.

  2. State Acknowledgements are accepted by the Modernized e-File (MeF) System. Participating Federal/States can send their State Acknowledgements to MeF for trading partners to pick up when they pick up their Federal Acknowledgements.

  3. Acknowledgements of state returns are made within 48 hours. Acknowledgements for Federal returns usually are received within five minutes but can take up to two hours during peak days.

  4. States that participate in e-filing are:

    E-file States
    Alabama Louisiana Ohio (now includes Regional Income Tax Authority (RITA))
    Arizona Maine Oklahoma
    Arkansas Maryland Oregon
    Colorado Michigan Pennsylvania
    Connecticut Minnesota Rhode Island
    Delaware Mississippi South Carolina
    District of Columbia Missouri Tennessee
    Georgia Montana Utah
    Hawaii Nebraska Vermont
    Idaho New Hampshire Virginia
    Illinois New Jersey West Virginia
    Indiana New Mexico Wisconsin
    Iowa New York (now includes New York City)  
    Kansas North Carolina  
    Kentucky North Dakota  
  5. Each state issues its own publications to detail the state's software specification requirements. Software developers contact the appropriate state to obtain electronic filing publications

  6. IRS e-file accepts federal/state e-file returns with foreign addresses, including the U.S. possession of Puerto Rico.

21.2.1.42  (03-10-2015)
VITA/TCE/AARP/FSA Sites

  1. Direct the taxpayer to the list of VITA/TCE/AARP/FSA (Volunteer Income Tax Assistance and Tax Counseling for the Elderly, American Association of Retired Persons, Facilitated Self-Assistance) sites available on IRS.gov for future reference. Access the link http://det0190cpsprpt/sitesearch/Default.aspx on SERP's Who/Where tab, which provides an online nationwide directory of volunteer assistance locations taxpayers may visit for free filing assistance. Use this link to refer taxpayers to volunteers. Caution:VITA/TCE/AARP/FSA sites are intended to assist taxpayers in return preparation, but limited in the services they provide. Do not direct callers to these sites for individual tax law questions or other services not provided. Refer to Publication 3676-B, ITA/TCE Site Location Flyer for Field Assistance, Taxpayer Assistance Centers, which provides a list of the returns and forms IRS certified volunteers have been trained to work.

  2. Users may search by state/county or zip code to provide a list of sites where taxpayers may file free. Use the following site information to ensure that the volunteer site provides the necessary services before referring the caller:

    • Site Name

    • Address

    • County

    • Open/Closing Dates

    • Program Type

    • Phone

    • Hours and languages spoken

    • E-file availability

    • Whether taxpayer needs to call for an appointment

  3. Two of the several possible program types included Facilitated Self-Assistance FSA Fusion and FSA Standalone.

    1. FSA Fusion sites allow taxpayers to prepare their own returns with the assistance of a certified VITA volunteer. Taxpayers who do not wish to select this option may instead choose to have a volunteer prepare their return at the same location.

    2. FSA Stand-Alone sites only provide the self-prep option; volunteers at these locations only assist the taxpayer and do not prepare returns.

21.2.1.42.1  (12-06-2013)
VITA/TCE/AARP/FSA e-file

  1. Free electronic filing and transmitting is offered at Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) Sites. See IRM 22.30.1, Stakeholder Partnership, Education and Communication for more information.

21.2.1.43  (11-16-2012)
Form e-file

  1. Reporting Agents who file Form 941 returns for themselves or others are eligible to participate in this program.

    Note:

    Software Developers who develop and test software for the programs, and IRS agents (via Simplified Tax and Wage Reporting System (STAWRS)) are also eligible participants of this program.

  2. Participants, except IRS Agents, must submit:

    • Reporting Agent's List to the Austin Submission Processing Campus (AUSPC) e-file Help Desk.

    • Form 8655, Reporting Agent Authorization, to the Austin Submission Processing Campus (AUSPC) e-file Help Desk.

    • IRS e-file Application through the electronic application process for the following:
      Electronic/Magnetic Media Filing of Business
      Employee Benefit Plan Returns
      Reporting Agents
      Software Developers Letter of Application (business taxpayer)

    • Complete three easy steps:
      1. Create an IRS e-Services account.
      2. Submit your e-file application online.
      3. Pass a suitability check.

  3. Reporting Agents have signature authority and electronically sign returns using an assigned Personal Identification Number (PIN).

  4. Only original, current tax year returns (no amended) and returns for all four quarters of the prior tax year are accepted by Form 941 e-file.

  5. The following is a list of attachments that can be transmitted through Form 941 e-file:

    • Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors.

    • Schedule D, Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations.

    • Schedule R, Allocation Schedule for Aggregate Form 941 Filers.

21.2.1.43.1  (10-01-2011)
Form 944, Employer's ANNUAL Federal Tax Return (e-file)

  1. The Form 944, Employer's ANNUAL Federal Tax Return, is filed once a year rather than quarterly (due January 31), significantly reducing the tax filing burden. The 944 e-file Program will allow small employers with little or no employment tax liability to file their returns electronically. Eligible employers are those with estimated annual tax liability of $1,000 or less. See IRM 3.42.4, IRS e-file for Business Tax Returns, for additional information.

21.2.1.44  (10-01-2015)
Form 1065 & 1065-B MeF Programs

  1. Section 6011(e)(2) enacted by Section 1224 of the Taxpayer Relief Act of 1997 requires partnerships with more than 100 partners to file Form 1065, Schedule K-1, and related forms and schedules on magnetic media (electronically as prescribed by the IRS Commissioner). This legislative mandate applies to partnership returns for tax year ending December 31, 2000 and subsequent.

  2. Eligible participants for this program are:

    • Partnerships who develop their own software and file own returns

    • Originators/Preparers responsible for returns filed for firms, organizations or individuals and for Form 8453-P, US Partnership Declaration and Signature for Electronic Filing.

    • Transmitters who transmit returns directly to the IRS electronically.

    • Software Developers who develop and test software for the program.

  3. Participants must submit an IRS e-file Application via e-services for Electronic/Magnetic Media filing of Business and Employee Benefit Plan Returns. See Publication 3112, IRS e-file Application and Participation for additional information.

  4. For additional information on 1065 MeF Program see Publication 4163, Modernized e-file (MeF) Information for Authorized IRS e-file Providers for Business Returns and Publication 4164, Modernized e-file Guide for Software Developers and Transmitters.

21.2.1.45  (09-12-2014)
Form 1041 MeF Program

  1. Forms 1041, US Income Tax Return for Estates and Trusts, are electronically received at the ECC-MEM and are processed by the Ogden Submission Processing Campus (OSPC).

  2. Form 8453-F, U.S. Estate or Trust Income Tax Declaration and Signature for Electronic Filing is obsolete beginning Tax Year 2014. Form 8453- FE, U.S. Estate Or Trust Declaration for an IRS e-file return will be the signature document for all Form 1041 e-filed returns beginning Tax Year 2014. The Form 8453-FE should not be mailed to IRS. It will be included in the electronic return as a PDF.

  3. An IRS e-file Application must be submitted electronically via e-services in order to participate in IRS e-file program.

  4. Eligible participants for this program are:

    • Electronic Return Originators

    • Transmitters & Software Developers

    • Intermediate Service Providers

21.2.1.46  (10-01-2006)
FEDERAL/STATE Fiduciary Return Program

  1. This program is for filing Estate and Trust returns for both federal and state at the same time.

  2. Any state that has a requirement to file both federal and state fiduciary returns may participate. (Currently New York is the only state participating.)

21.2.1.46.1  (10-01-2008)
FEDERAL/STATE Partnership Program

  1. This program is for filing Partnership Returns for both federal and state at the same time.

  2. Any state that has a requirement to file both federal and state Partnership returns may participate. Currently, Georgia, Kansas, Maryland, Michigan, Utah and Wyoming are the only states participating.

21.2.1.47  (10-01-2016)
Electronic Federal Tax Payment System (EFTPS)

  1. The Electronic Federal Tax Payment System (EFTPS) allows individuals and businesses to make electronic deposits and payments for federal taxes such as Employment Taxes, Excise Taxes, Corporate Income Taxes and Form 1040 Estimated taxes.

    Note:

    Treasury Decision (TD) 9507 ended the use of paper Federal Tax Deposit (FTD) coupons beyond December 31, 2010.

  2. Generally, businesses and individuals must enroll in the EFTPS program to participate. Taxpayers can visit https://www.eftps.gov/eftps/ to enroll in EFTPS and to obtain information on how to complete a payment, or they can call EFTPS Customer Service for assistance:

    • Business 1- 800-555-4477

    • Individual 1-800-316-6541

    • Spanish 1–800-244-4829

    • TDD 1–800-733-4829

  3. Participants make EFTPS payments by:

    1. Accessing the EFTPS web site, https://www.eftps.gov/eftps/ or utilizing the Voice Response System by calling EFTPS at:

      1. Business 1-800-555-3453

      2. Individual 1-800-315-4829

      3. Spanish 1-800-466-4829

      4. TDD 1-800-990-4829

      5. Non-toll free 1–303–967–5916

    2. Authorizing their bank to make a payment directly to the U.S. Treasury

    3. Contacting a third party provider such as a payroll service.

  4. As of January 1, 2011 businesses must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate tax). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used as of December 31, 2010. If the participant does not want to use EFTPS, they can arrange for their tax professional, financial institution, payroll service, or other trusted third party to make deposits on their behalf.

    Note:

    See Publication 15, Circular E, Employer’s Tax Guide, "Section 11" for more information on "Electronic Deposit."

  5. Deposits made through EFTPS must be initiated by 8:00 p.m. ET one calendar day prior to the payment due date.

    Note:

    If the due date falls on a Saturday or Sunday and a deposit is made by 8:00 p.m. ET Friday, the deposit settlement date will not be until the next business day.

    Note:

    If the due date falls on a banking holiday and a deposit is made by 8:00 p.m. ET the calendar day before, the deposit settlement date will not be until the next business day.

  6. A Same Day Payment option is available through the Federal Tax Collection Service (FTCS) to businesses who cannot initiate a timely EFTPS payment. This option is not intended for ongoing use.

  7. Taxpayers should contact their financial institution for information on availability, deadlines, and fees. Refer to IRM 3.17.277.1.4.3(1) for availability of FTCS for individual taxpayers.

  8. EFTPS is a free service of the U.S. Department of Treasury. However, taxpayers are encouraged to check with their authorized financial institutions for their costs, deadlines, and eligibility requirements associated with each payment method.

  9. Use IDRS Command Code EFTPS to research payments made through EFTPS.

    Note:

    See IRM 2.3.70, Command Code EFTPS for additional information on CC EFTPS. See IRM 21.5.7.4.7.15 for information on EFTPS payment tracers.

21.2.1.48  (04-22-2014)
Electronic Payment Options for Individuals and Business e-file Users

  1. Individuals may electronically pay federal taxes, including the balance due on their current Form 1040 series return, estimated taxes, and other tax types using the following methods:

    • IRM 21.2.1.48.1, IRS Direct Pay

    • IRM 21.2.1.48.2, Electronic Funds Withdrawal (Direct Debit)

    • IRM 21.2.1.48.3, Payment by Credit Card or Debit Card (General)

    • IRM 21.2.1.48.4, Payment by Credit Card or Debit Card (Integrated e-file and e-pay)

    • IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet)

    • IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS)

  2. Businesses may electronically pay federal taxes, including the balance due on certain returns, using the following methods:

    • Payment by Electronic Funds Withdrawal (Direct Debit). See IRM 21.2.1.48.2, Electronic Funds Withdrawal (Direct Debit)

    • Payment by Credit or Debit Card (Pay by Phone or Internet). See IRM 21.2.1.48.5, Credit or Debit Card Payments (Pay by Phone or Internet)

    • Electronic Federal Tax Payment System. See IRM 21.2.1.47, Electronic Federal Tax Payment System (EFTPS)

21.2.1.48.1  (10-01-2016)
IRS Direct Pay

  1. IRS Direct Pay is a new payment application available to Individual Master File (IMF) taxpayers through IRS.gov. It is a free service that allows taxpayers to make electronic payments directly to the IRS from their checking or savings accounts. Generally payments will post within 48 hours. This service is free and secure, provides electronic confirmation, and the quickest possible way to make a payment. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Telephone assistors should encourage taxpayers inquiring about paying a balance to utilize IRS Direct Pay as a quick, accurate and easy way to make payments towards their IMF balance.

    Note:

    Taxpayers can access Direct Pay online through IRS.gov where they may select the Payments tab and follow the instructions.

  3. IRS Direct Pay is currently only available to IMF taxpayers. The service can be used for the following payment types:

    • Installment Agreements

    • Balance Due Notices

    • Estimated Tax Payments

    • Payments with a return

    • Payments with Extension-to-File.

      Note:

      It is not necessary to file a paper Form 4868, Application for Automatic Extension of Time to File for U.S. F1040 Individual Income Tax Return, if a taxpayer makes an extension-to-file payment with IRS Direct Pay

    • Payment for adjusted balance due (e.g., CP 2000 or Exam notice)

    • Payment with Amended Return

    • Payments with Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts.

    • Individual Shared Responsibility Payments (related to the Affordable Care Act (ACA)).

    More payment types may become available in the future. Note that at this time only Form 1040-series payments and associated penalties can be made through IRS Direct Pay.

    Note:

    Direct Pay does not accept payments for MFT 31, Separate Assessments.

  4. Please advise joint filers using Direct Pay to complete the" Verify Identity" page using the primary filer's information, even if the taxpayer is making an estimated tax payment. This will ensure that the payment is promptly applied to balance due account.

  5. Important: Taxpayers must have a valid Social Security Number or an eligible ITIN to use Direct Pay. Most, but not all, ITINs are accepted. The majority of ITINs have a fourth and fifth digit that falls in the range of 70-88. These ITINs are accepted by Direct Pay. Any ITIN with the fourth and fifth digit outside of that range is from a new ITIN series, and has not yet been configured to work with the application. A future update will correct this problem..

  6. In addition to the ineligible ITIN, the following users can not use Direct Pay:

    • First-time filers can not use Direct Pay, since the application has no return history information to use for authentication purposes.

    • Users who have not filed a return in the last six years can not use Direct Pay. The application would not have sufficient filing information for authentication.

    • Users with a non-U.S. bank routing number. IRS Direct Pay requires a U.S. bank routing number (ABA). This nine-digit number is generally printed on checks or is available from your bank. If the taxpayer has an account with an international bank that has a U.S. affiliate, the bank may be able to provide the routing number.

  7. As of April 19, 2014, IRS Direct Pay added new functionality:

    • The ability to schedule a payment from their savings or checking account up to 30 days in advance. Important: This feature is for a single payment and not regular periodic payments. The taxpayer needs to schedule each payment.

    • Payment status look up.

    • Payment rescheduling and cancellations.

  8. IRS Direct Pay is a self-help application, so the number of phone inquiries should be limited. For more information, see IRM 21.2.1.48.1.1, Responding to IRS Direct Pay Inquiries.

    Note:

    The IRS Direct Pay web pages are not yet available in Spanish.

21.2.1.48.1.1  (10-01-2015)
Responding to IRS Direct Pay Inquiries

  1. Important: Telephone assistors should encourage taxpayers to use IRS Direct Pay for all inquiries on paying a balance due account. Taxpayers may access IRS Direct Pay by typing Direct Pay into the IRS.gov search field and clicking the resulting links.

    Note:

    Emphasize that Direct Pay is a quick, secure and easy way to make payments towards their IMF balance. The IRS does not charge fees to use this service.

  2. Since IRS Direct Pay is a self-service application, the taxpayer should be able to address most issues using online resources. Some Direct Pay users, however, may experience difficulty completing the identity verification process, and will ask you to check that the information they are using is accurate. Warning: You must successfully complete Taxpayer Authentication as described in IRM 21.1.3.2.3, Required Taxpayer Authentication, before providing the caller with any account information. If the taxpayer's only issue is to verify address information, it will be necessary to complete additional authentication as described in IRM 21.1.3.2.4, Additional Taxpayer Authentication.

  3. Submitting a payment with Direct Pay may require the user to provide information from a different tax year to verify their identity. This is where many verification errors occur, as users tend to use the most current information. Explain to the caller the following steps:

    • Tax Information - The user enters payment information, including, form type, reason for payment, and the tax year the payment should be applied to.

    • Verify Identity - The user enters information from a past year tax return for identity verification purposes. The tax year the user selects for identification verification does not have to match the tax year for the payment. The user must use the exact information (name, address, filing status, etc) from the return they are using to verify their identity.

    • Payment Information- The user enters the amount of payment, date of payment (within 30 days) and Bank Account Information, Routing number, Account number and type of Bank Account (Checking or Saving).

  4. Follow the instructions below for other IRS Direct Pay inquiries:

    If Then
    Taxpayer calls with general questions about IRS Direct Pay Tell the taxpayer that a link for IRS Direct Pay can be found on the "Payments" tab of the IRS.gov home page. They may also find it by using the IRS.gov search field to input the phrase "Direct Pay" , then clicking the resulting link.
    Taxpayer calls to verify payment. Research IDRS. See IRM 21.5.7.4.7.15.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer. The fourth digit in the EFT number will be a "0" for electronic funds withdrawal (direct debit) payments.
    Taxpayer calls asking if payments made on the due date will be applied on the same day. Tell the taxpayer that as long as the payment, including an installment agreement payment, was submitted on or before the due date and a confirmation number was received in this program, the payment will be considered timely.

    Note:

    Applicable penalties and interest will continue to accrue on unpaid balances until paid in full.

    Taxpayer calls with IRS Direct Pay related penalty issues See IRM 21.2.1.48.1.2, Inquiries Regarding Unsuccessful Direct Pay Payments, IRM 21.2.1.48.1.2.1, Removing Penalties Due to Unsuccessful Direct Pay Payments, IRM 21.2.1.48.1.2.2, Installment Agreement Issues Due to Unsuccessful Direct Pay Payments.

21.2.1.48.1.2  (05-02-2016)
Inquiries Regarding Unsuccessful Direct Pay Payments

  1. The taxpayer may call after receiving Letter 5170, Important information about your IRS Direct Pay Payment. This letter:

    • Explains that the payment attempted through Direct Pay was not successful and provides a description of the problem, followed by what to do next.

    • Provides an error code. Use the table in paragraph (3) below to identify the error.

    • States that the rejected payment may result in penalty and interest, and if so, a separate letter will follow with the specific details. Important: Determine if the caller has received the formal penalty notice. If not, research the account to see if penalties are present and meet the criteria for penalty removal. See IRM 21.2.1.48.1.2.1, Removing Penalties Due to Unsuccessful Direct Pay Payments.

    • Advises the taxpayer that the best way to avoid or reduce penalty is to immediately replace the payment. Determine if the follow-up payment has been made; if not, reiterate this advice to the taxpayer.

  2. For taxpayers who do not receive a letter indicating their IRS Direct Pay transaction was unsuccessful, the account can be researched to identify the EFT payment number. Telephone assistors can research CC EFTPS to identify the Automated Clearing House (ACH) Reject Reason Code (RRC).

  3. The following chart provides a description of each error along with the instructions for what the taxpayer must do next.

    Code Description Messaging for Next Step
    R01 RETURN: INSUFFICIENT FUNDS Resubmit your payment and ensure you have sufficient funds in your account for this payment.
    R02 RETURN: ACCOUNT CLOSED Resubmit your payment and ensure you enter a valid checking or savings account number.
    R03 RETURN: NO ACCOUNT/UNABLE TO LOCATE ACCOUNT
    R04 RETURN: INVALID ACCOUNT NUMBER STRUCTURE
    R05 RETURN: UNAUTHORIZED DEBIT TO CONSUMER ACCOUNT USING CORPORATE SEC CODE Contact your financial institution for more information on how to correct this issue.
    R09 RETURN: UNCOLLECTED FUNDS
    R11 RETURN: CHECK TRUNCATION ENTRY RETURN
    R12 RETURN: ACCOUNT SOLD TO ANOTHER DFI
    R14 RETURN: REPRESENTATIVE PAYEE DECEASED OR UNABLE TO CONTINUE IN THAT CAPACITY
    R15 RETURN: BENEFICIARY OR ACCT HOLDER(OTHER THAN A REPRESENTATIVE PAYEE) DECEASED
    R16 RETURN: ACCOUNT FROZEN
    R17 RETURN: FILE RECORD EDIT CRITERIA
    R18 ACH REJECT: IMPROPER EFFECTIVE ENTRY DATE
    R19 ACH REJECT: AMOUNT FIELD ERROR
    R20 RETURN: NON-TRANSACTION ACCOUNT
    R21 RETURN: INVALID COMPANY IDENTIFICATION
    R22 RETURN: INVALID INDIVIDUAL IDENTIFICATION
    R23 RETURN: CREDIT ENTRY REFUSED BY RECEIVER
    R25 ACH REJECT: ADDENDA ERROR
    R26 ACH REJECT: MANDATORY FIELD ERROR
    R27 ACH REJECT: TRACE NUMBER ERROR
    R29 RETURN: CORPORATE CUSTOMER ADVISES NOT AUTHORIZED
    R30 ACH REJECT: RDFI NOT CHECK TRUNCATION PARTICIPANT
    R31 RETURN: PERMISSIBLE RETURN ENTRY
    R32 ACH REJECT: RDFI NON-SETTLEMENT
    R33 RETURN: RETURN OF XCK ENTRY
    R07 RETURN: AUTHORIZATION REVOKED BY CUSTOMER Resubmit your payment. You revoked the previous payment.
    R08 RETURN: PAYMENT STOPPED Resubmit your payment. We were unable to process the previous payment due to a stop payment request.
    R10 RETURN: CUSTOMER ADVISES NOT AUTHORIZED Resubmit your payment. We couldn’t process the previous payment because it was not authorized.
    R13 ACH REJECT: INVALID ACH ROUTING NUMBER Resubmit your payment and ensure that you provide a valid routing number for your financial institution.
    R24 RETURN: DUPLICATE ENTRY Contact your financial institution to determine if you need to resubmit your payment.
    R35 RETURN OF IMPROPER DEBIT ENTRY
    R28 ACH REJECT: ROUTING NUMBER CHECK DIGIT ERROR Resubmit your payment and ensure you provide a valid routing number for your financial institution.
    R34 ACH REJECT: LIMITED PARTICIPATION DFI Contact your financial institution to determine if they participate in ACH processing.

21.2.1.48.1.2.1  (02-29-2016)
Removing Penalties Due to Unsuccessful Direct Pay Payments

  1. In rare cases, you may consider abating penalties resulting from an unsuccessful Direct Payment. This is true even if the taxpayer has not received the official penalty notice, and whether or not the taxpayer requests the abatement. A penalty may be abated without any written communication when it can be determined that the penalty should not have been assessed in the first place. See IRC 6404(a)(3), for additional information. If you can determine without additional information from the taxpayer that the penalty should not have been assessed, then the penalty can be abated without any written documentation. Caution: You must research the account thoroughly to make this determination. For example: Errors due to a misunderstanding of web site instructions. For example, the taxpayer accidentally inputs the routing number into the payment amount field.

  2. If you determine that the situation meets the criteria described in paragraph (1) and the penalty should not have been assessed, abate the penalty using a TC 281, RC 065, and PRC 015.

  3. Apologize verbally during telephone contact, or in writing for correspondence cases, if a notice or bill was sent to the taxpayer due to a penalty assessed in error.  

  4. Determine if the taxpayer had an installment agreement that was affected by this situation. If so, follow IRM 21.2.1.48.1.2.2, Installment Agreement Issues Due to Unsuccessful Direct Pay Payments.

  5. In all other cases you must follow normal penalty relief procedures as described in IRM 20.1.2.1.6, Correcting Incorrect Assessments. IRS employees have a responsibility to correct incorrect penalty assessments when they are identified and the statutory period for making the correction has not expired. IRC 6404 (a) provides authority for IRS to abate at any time the unpaid portion of any liability that is excessive in amount, or that is erroneously or illegally assessed. A liability is excessive to the extent that it exceeds the amount provided for by law. For dishonored check penalties, follow IRM 20.1.10.4, IRC 6657 Bad Checks (Dishonored Checks or Other Forms of Payment).

  6. You may identify an erroneous overpayment. Simple input errors, such as the omission of a decimal point, resulting in a payment 100 times larger than intended.

    Note:

    You may identify an erroneous large dollar payment using the EFT number: the digits in positions 3-5 would be 222. (EFT number appears under a payment amount, similar to a DLN number)

21.2.1.48.1.2.2  (02-29-2016)
Installment Agreement Issues Due to Unsuccessful Direct Pay Payments

  1. If a taxpayer's installment agreement (IA) erroneously defaulted due to the situations described in IRM 21.2.1.48.1.2.1, Removing Penalties Due to Unsuccessful Direct Pay Payments follow the guidance in IRM 21.3.12.5.7, Taxpayer Requesting Reinstatement of Defaulted Installment Agreement, to reinstate the IA.

21.2.1.48.2  (05-23-2016)
Electronic Funds Withdrawal (Direct Debit)

  1. Taxpayers who electronically file the returns or tax forms listed below via an electronic return originator (ERO) or online can simultaneously authorize the Treasury to make an electronic funds withdrawal (direct debit) from a designated checking or savings account to pay a balance due, including interest and/or penalty.

  2. The following types of taxes may be paid by electronic funds withdrawal when these forms are filed electronically:

    1. Form 1040 series

    2. Form 4868

    3. Form 2350

    4. Form 1040-ES

    5. Form 941

    6. Form 941-PR

    7. Form 941-SS

    8. Form 940

    9. Form 940-PR

    10. Form 943

    11. Form 943PR

    12. Form 944

    13. Form 945

    14. Form 1041

    15. Form 1065/1065B

    16. Form 1120/1120S/1120POL/ 1120F

    17. Form 7004

    18. Form 990-PF

    19. Form 8868

    20. Form 720

    21. Form 2290

  3. Late payments, including interest and/or penalty may be accepted if the electronic filing option extends beyond the return due date. There are no separate entries on the payment record for interest and/or penalty amounts. Those amounts should be combined with the tax due and the total should be reflected in the "Amount of Tax Payment" entry on the payment record.

  4. For some forms, such as Form 1040 and Form 1120 series returns, taxpayers may e-file early and schedule a payment for withdrawal on a future date, up to and including the return due date. After the return due date, the payment date is equal to the date the return is filed electronically. For example: If there are issues that prevent the return from being processed until 05/01/11, then 05/01/11 is treated as the payment date.

  5. Form 1040-ES payment requests must be authorized at the same time the Form 1040 series return, or Form 4868 extension is electronically filed. Estimated tax payments may be made whether or not there is a balance due on the return. Taxpayers may schedule payments for withdrawal on quarterly due dates (e.g., January 15, April 15, June 15, and September 15).

    Note:

    Quarterly due dates may change if they are impacted by a holiday or a weekend.

  6. Up to four estimated payments may be initiated with an electronically filed Form 1040 series return, or a Form 1040 return.Form 2350 extension, or Form 4868 extension form (using Modernized e-File (MeF) software). When one or more 1040-ES payments are made, IRS automatically enrolls a taxpayer in the Electronic Federal Tax Payment System (EFTPS), if not already enrolled. An enrollment letter is only mailed to a taxpayer when the taxpayer calls EFTPS to request one. A taxpayer does not have to use EFTPS. We offer this option in case the taxpayer cancels an EFW payment and/or did not submit all four of their payments through EFW, and therefore now needs to make one or more additional payments. Taxpayers should call 1–800–316–6541 (available 24/7) for more information.

  7. For Form 2350 and Form 4868, taxpayers may schedule a payment for withdrawal on a future date up to and including the return due date.

  8. For Form 1065/1065B, taxpayers may schedule a payment for withdrawal on a future date up to and including the return due date.

  9. A taxpayer should refer to his/her tax preparation software or tax professional to determine if a partial payment may be made and to find out what the operational periods are for any electronic payment they may make.

  10. Taxpayers are prompted to enter the bank account number and routing transit number. Most rejects (a reject is technically referred to as a "return" by the financial institution) occur because one or more of these numbers do not exactly match the information contained by a taxpayer's financial institution. Taxpayers should verify these numbers with their financial institution prior to entering them on the payment record to prevent rejection of the payment.

  11. Taxpayers cannot change the bank account number or routing transit number once the return or form is filed. If the bank information changes, was entered incorrectly, or the account is closed prior to the scheduled payment date, the taxpayer should cancel the payment (time permitting) and make other payment arrangements to ensure that the balance is satisfied.

  12. To cancel scheduled payments, taxpayers should call toll-free, 1–888-353-4537. Cancellations must be requested no later than 11:59 p.m., Eastern Time, at least two business days prior to the scheduled payment date.

  13. Taxpayers may also call the above number to inquire about the status of their payment(s) or for assistance regarding the letter 4870C they may have received pertaining to their electronic funds withdrawal request. This inquiry service is available year round, 24/7.

    Note:

    Taxpayers should wait at least ten days after returns are electronically filed and accepted before making any inquiries.

  14. The payer's bank statement provides confirmation of payment. The statement will include "United States Treasury Tax Payment" or something similar.

21.2.1.48.3  (11-19-2007)
Payment by Credit Card or Debit Card (General)

  1. Credit or debit card payments are accepted through private industry card processors (also known as service providers) and/or software developers which charge convenience fees for the service.

  2. Convenience fees are based on the amount of tax payment and may vary by service provider. Fees are disclosed to the taxpayer prior to the completion of the transaction.

  3. The card processor provides IRS the necessary payment information to update the taxpayer's Master File account. IRS does not have access to the card number.

  4. The cardholder's statement provides confirmation of payment. The statement will include a "US Treasury Tax Payment" transaction. The convenience fee is listed separately on the statement.

  5. The payment date for the card transaction is the date the charge is authorized.

  6. Cardholders may make tax payments on behalf of dependents or other taxpayers.

21.2.1.48.4  (10-01-2007)
Payment by Credit or Debit Card (Integrated e-file and e-pay)

  1. Taxpayers who e-file, may simultaneously file a balance due return and make a credit or debit card payment, if the tax preparation software used supports this payment option.

  2. "E-file and e-pay" card payments must be made at the time the return is filed electronically.

  3. Taxpayers are prompted to enter the card number and expiration date.

  4. The card payment is either authorized at the time the e-file return is transmitted or as part of the electronic return acknowledgment process.

  5. Taxpayers may refer to tax software or a tax professional for additional information, e.g., which cards are accepted.

21.2.1.48.5  (10-01-2016)
Credit or Debit Card Payments (Pay by Phone or Internet)

  1. Beginning January 1, 2017 at 9:00 a.m. through December 31, 2017 at midnight (except where notated in the chart below), the following types of taxes may be paid by Phone or Internet using a credit or debit card:

     FORMS  PAYMENT TYPE  MAX PAYMENTS
     INDIVIDUAL  
    Form 1040 series Current Tax due 2 per year
    Current Year Notice 2 per year
    Prior Year 2 per year
    Audit Adjustment/CP 2000/CP 2501/ CP 3219A 2 per year
    Installment Agreement 2 per month
    Extension to Pay No Limit
     Form 1040-ES Estimated Tax  2 per quarter

    Note:

    April 18, 2016 9:00 a.m. to January 15, 2017 midnight

        Form 1040-X Amended 2 per year
     Form 4868 Extension to File 2 per year

    Note:

    January 1, 2017 9:00 a.m. to April 18, 2017 midnight

    Form 5329 Current Tax due 2 per year
    Health Care - Form 1040 Audit Adjustment/CP 2000/CP 2501/CP 3219a (2015-2016) 2 per year
    Health Care - Form 1040 -Notice Payments Notice Balance Due (2015-2016) 2 per year
    Health Care - Form 1040X Amended (2014-2016) 2 per year
    Trust Fund Recovery Penalty Prior Year 2 per quarter
    Installment Agreement 2 per month
     BUSINESS  
    Form 940 series Current Tax due 2 per year
    Prior Year 2 per year
    Installment Agreement 2 per month
    Amended or Adjusted 2 per year
    Form 941 series Current Tax due 2 per quarter
    Prior Year 2 per quarter
    Installment Agreement 2 per month
    Amended or Adjusted 2 per quarter
    Form 943 series Current Tax due 2 per year
    Prior Year 2 per year
    Installment Agreement 2 per month
    Amended or Adjusted 2 per year
    Form 944 series Current Tax due 2 per year
    Prior Year 2 per year
    Amended or Adjusted 2 per year
    Form 945 series Current Tax due 2 per year
    Prior Year 2 per year
    Installment Agreement 2 per month
    Amended or Adjusted 2 per year
    Form 1041 series Current Tax due 2 per year
    Prior Year 2 per year
    Form 1065 series Current Tax due 2 per year
    Prior Year 2 per year

    Note:

    Prior to January 1, 2016, refer to the Electronic Payment Options Home page at https://www.irs.gov/payments, or a prior version of this IRM section for calendar year 2015 processing period dates.

  2. Businesses that are required to make Federal Tax Deposits (FTDs) cannot use a card payment to meet deposit requirements: Federal Tax Deposits can only be made through the Electronic Federal Tax Payment System (EFTPS). It is the responsibility of the employer to ensure that all taxes are paid or deposited correctly and on time.

  3. Payments may be made for the full outstanding balance or a partial payment (e.g., monthly installment agreement payments) may also be made.

  4. Past due payments (prior tax years and installment agreements) may be made for taxes up to 20 years past due. Time frames for making prior tax year payments vary depending on the form. For a list of the forms and time frames, refer to the Electronic Payment Options Home Page at https://www.irs.gov/payments, then select Credit or Debit Card.

  5. Taxpayers have the option to either use an IRS e-pay service provider or an integrated IRS e-file and e-pay service provider. The service providers offer these options to taxpayers who file on paper or electronically. The payment options are available 24 hours a day, 7 days a week. The service providers charge convenience fees for the services.

  6. Use the following chart when taxpayers inquire about credit or debit card payments.

    If And Then
    Taxpayer wants to pay their bill with a credit/debit card Has access to the internet Advise the taxpayer to go to the "Pay your Taxes by Credit or Debit Card" web site on irs.gov for service providers, telephone numbers, web sites and convenience fees. Provide one or more of the following options to the taxpayer.
    A) The taxpayer may select the “Payments” tab at the top of the irs.gov home page and follow the instructions from there.
    B) The taxpayer may search the irs.gov home page using key words such as "Credit Card" or "Debit Card" .
    C) If the taxpayer wants to input the link directly into their web browser, provide the full URL https://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card.

    Note:

    If the taxpayer requests the full URL, include hyphens, forward slashes, and upper and lower case letters.

    Does not have access to the internet Provide the taxpayer with the Preferred Provider name and toll-free pay-by-phone number for the type of tax they are paying. Advise the taxpayer that a convenience fee is charged for the service and may vary between providers.
    Taxpayer needs the phone number to pay with a credit/debit card   Provide the taxpayer with the toll-free numbers for the Preferred Provider for the type of tax they are paying. Advise the taxpayer that the information can be found on the "Pay your Taxes by Credit or Debit Card" web site on irs.gov for service providers, telephone numbers, web sites and convenience fees. Provide one or more of the following options to the taxpayer.
    A) The taxpayer may select the “Payments” tab at the top of the irs.gov home page and follow the instructions from there.
    B) The taxpayer may search the irs.gov home page using key words such as "Credit Card" or "Debit Card" .
    C) If the taxpayer wants to input the link directly into their web browser, provide the full URL https://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card.

    Note:

    If the taxpayer requests the full URL, include hyphens, forward slashes, and upper and lower case letters.

    International taxpayer needs a non toll-free number   Provide the taxpayer with the International Non Toll-Free number for the Preferred Provider. Advise the taxpayer that the information can be found on the "Pay your Taxes by Credit or Debit Card" web site on irs.gov for service providers, telephone numbers, web sites and convenience fees. Provide one or more of the following options to the taxpayer.
    A) The taxpayer may select the “Payments” tab at the top of the irs.gov home page and follow the instructions from there.
    B) The taxpayer may search the irs.gov home page using key words such as "Credit Card" or "Debit Card" .
    C) If the taxpayer wants to input the link directly into their web browser, provide the full URL https://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card.

    Note:

    If the taxpayer requests the full URL, include hyphens, forward slashes, and upper and lower case letters.

    Taxpayer requests an extension to pay or installment agreement, and the contact representative is providing the taxpayer with options for payment Has access to the internet Advise the taxpayer to go to the "Pay your Taxes by Credit or Debit Card" web site on irs.gov for service providers, telephone numbers, web sites and convenience fees. Provide one or more of the following options to the taxpayer.
    A) The taxpayer may select the “Payments” tab at the top of the irs.gov home page and follow the instructions from there.
    B) The taxpayer may search the irs.gov home page using key words such as "Credit Card" or "Debit Card" .
    C) If the taxpayer wants to input the link directly into their web browser, provide the full URL https://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card.

    Note:

    If the taxpayer requests the full URL, include hyphens, forward slashes, and upper and lower case letters.

    Does not have access to the internet. Provide the taxpayer with the Preferred Provider name and toll-free pay-by-phone telephone numbers for the type of tax they owe. Advise the taxpayer that a convenience fee is charged for the service and may vary between providers.
  7. The IRS has established a policy determining the Preferred Provider and the order of which the service providers are listed each filing season and they rotate the list of the companies via the IRM, IRS.gov, and the publications. The Preferred Provider is listed below first and the two other providers listed in subsequent order. The IRM will be updated every December to show the next year filing season’s Preferred Provider.

    Credit or Debit Card Service Providers
    Pay1040.com (Link2GovCorporation) https://www.pay1040.com/
    888-729-1040 Payment by Telephone (Toll-Free)
    888-658-5465 Customer Service (Toll-Free)
    1-501-748-8507 International Service (Non Toll-Free)
    PayUSAtax (WorldPay US, Inc.) https://payusatax.com/
    844-729-8298 Payment by Telephone (Toll-Free)
    855-508-0159 Live Operator (Toll-Free) (Automated phone system may identify the service as "Value Payment Systems" , a partner of WorldPay US, Inc),
    844-825-8729 Customer Service (Toll-Free)
    International Service (Non Toll-Free)
    1-615-550-1491 Payment
    1-615-942-1141 Live Operator
    1-615-550-1492 Customer Service

    Official Payments (Official Payments Corporation) https://www.officialpayments.com/fed
    888-872-9829 Payment by Telephone (Toll-Free)
    877-754-4420 Live Operator (Toll-Free)
    877-754-4413 Customer Service (Toll-Free)
    1-334-521-3842 International Service (Non Toll-Free)
  8. Credit and debit cards accepted may vary by service provider. The IRS does not determine which credit cards the service providers accept.

  9. Taxpayers can use debit cards issued by VISA and Master Card when making tax payments through the service providers. However, the service providers, VISA and Master Card treat debit cards and credit cards equally for the purpose of processing electronic tax payments.

    Note:

    Taxpayers wishing to make debit card transactions should be informed of the electronic funds withdrawal options and notified that funds will be withdrawn almost immediately if a debit card is used and advised that a convenience fee will be charged.

  10. Fees may vary by service provider. Convenience fees are disclosed to the taxpayer prior to the completion of the transaction. Fee calculations may also be obtained through the customer service numbers and web sites listed above. The IRS does not receive or charge any fees for payments. The IRS cannot pay or reimburse any convenience fee to taxpayers. The convenience fee charged in connection with the payment of income taxes by credit card is deductible if a taxpayer itemizes deductions. The convenience fee can only be claimed on a Schedule A form, line 23. The taxpayer can only deduct the portion that exceeds the 2% amount on line 38, Form 1040. The convenience fee paid by businesses that pay employment taxes is considered a deductible business expense.

  11. Taxpayers will be prompted to select a payment type (as described above) and enter the primary taxpayer’s Social Security Number (SSN) or Employer Identification Number (EIN), payment amount, card number, expiration date, and the cardholder's zip code as listed on that account. The tax year must be identified for prior tax years and installment agreement payments, advanced payments of determined deficiency, employment tax and Trust Fund Recovery Penalties.

  12. A confirmation number is provided at the end of the transaction. It may take the IRS 5-7 days to post the payment to the taxpayer's account. The payment date will be equal to the date the transaction was authorized.

  13. Taxpayers are limited in the number of payments that can be made through each service provider. These limits are posted on IRS.gov.

  14. The service provider forwards the Social Security Number (SSN) or Employer Identification Number (EIN) entered during the transaction to the IRS for validation.

    1. If the SSN/EIN forwarded by the service provider does not match IRS records, the payment will not be forwarded for posting.

    2. The payment may reject because the taxpayer entered an erroneous SSN/EIN during the transaction.

    3. If the SSN/EIN cannot be validated, the service provider will contact the taxpayer and provide advice on how to re-submit the card payment (if possible) or pay by check or money order.

  15. Once the SSN/EIN is validated, the service provider will forward the payment data (such as the TIN, payment amount, tax type, date and confirmation number) to the IRS.

  16. Payment vouchers (Form 1040-V, Form 940-V, Form 940-V(PR), Form 941-V, Form 941-V(PR), Form 941-V(SS), Form 943-V, Form 943-V(PR), Form 944-V, Form 945-V) and other payment related forms (Form 4868, 1040-ES, etc.) should not be forwarded to the IRS.

  17. For additional information on electronic payment options, including credit and debit cards, refer to the Electronic Payments Option page on IRS' web site at https://www.irs.gov/Payments.

21.2.1.49  (12-17-2015)
IRS Web Site

  1. The IRS Web site provides tax information to the public. Taxpayers may:

    • Search publications by topic or keywords

    • Download forms, instructions and publications

    • Receive help with specific tax law questions via email

    • Read about local tax news and seminars

    • Locate IRS offices in their area

    • Resolve Tax Account Issues or obtain tax information

  2. Taxpayers may access the IRS Internet Web site at: https://www.irs.gov/.

  3. The Web site also offers information for tax practitioners, e.g., special advance notices and electronic filing information.

  4. Taxpayers may research tax law issues by viewing Frequently Asked Questions, Publications, Tax Trails or Tax Topics.

21.2.1.50  (10-01-2006)
Downloading From the Web Site

  1. To download (receive data from another computer into one's own computer) from the Web site, Adobe Acrobat Reader software is needed to view and print PDF files. This is the preferred format for viewing or printing IRS forms, instructions and publications.

  2. Adobe Acrobat Reader is available free of charge from the IRS Web site, as well as other Web sites.

  3. Advise callers needing technical assistance (not tax law) on downloading forms and publications from our Web site to contact the FEDWORLD Help Desk at (703) 487-4608.

21.2.1.51  (12-04-2013)
Internet Refund/Fact of Filing (IRFOF)

  1. Internet Refund/Fact of Filing (IRFOF) is an Internet application available through the IRS.gov home page, by clicking on "Where's my Refund." IRFOF is available in both English and Spanish.

  2. Taxpayers obtain refund status information using the following: shared secrets, SSN, Filing Status and expected refund amount.

  3. IRFOF provides refund status information consistent with, but not identical to the information provided by the telephone based applications. Special emphasis is placed on some exception conditions, freeze conditions and the Bureau of Fiscal Services (BFS) (formerly Financial Management Service (FMS)) Treasury Offset Program by providing detailed instructions and related information.

  4. For more information, see IRM 21.4.1.5, Internet Refund Fact Of Filing.

21.2.1.52  (05-23-2016)
Get Transcript

  1. Get Transcript is a new online ordering system for IMF accounts transcripts available through IRS.gov. See IRM 21.2.3.5.9.2 , IMF Transcript Ordering, for additional information.

  2. The new application provides two options:

    1. Get Transcript ONLINE

    2. Get Transcript by MAIL

  3. Get Transcript ONLINE:

    1. Allows the taxpayer to download in PDF format any of the five transcripts (tax return, tax account, record of account, wage and income, verification of non-filing letter) to view or print.

    2. Provides the current and three prior tax years for a tax return, record of account and verification of Non-Filing transcript.

    3. Provides the current and nine prior tax years for a tax account and wage and income transcript.

    4. Is offered only in English. Requires the taxpayer verify their identity and pass a rigorous authentication process using Secure Access eAuthentication. See IRM 21.2.1.59, Secure Access eAuthentication.

  4. Get Transcript by MAIL is the existing internet application on IRS.gov formerly known as Order a Transcript and:

    • Allows the taxpayers to order 2 types of transcripts - a Tax Return Transcript or a Tax Account Transcript.

    • Allows the taxpayers to order the current and three prior tax years.

    • Allows the taxpayer access in both English and Spanish.

    • Allows the request be sent to the taxpayer's address of record.

21.2.1.53  (11-03-2010)
e-Services

  1. E-Services is a suite of electronic products. Some e-services are available to external users, such as practitioners, through the Registered User Portal (RUP). Because IRS E-Service products, i.e., Electronic Accounts Resolution (EAR) and other electronic products are now available to the external user, there are instances of mis-routed e-service telephone inquiries. If a caller is requesting non-account related assistance for an e-service product, refer the caller to the toll-free number, 1-866-255-0654. You may also advise practitioner callers to request Publication 3112, IRS E-file Application and Participation, which is available by calling the toll-free number or by accessing https://www.irs.gov/.

    Note:

    The e-help desk does not provide help with tax account or tax law issues.

  2. IRS employees also use some of the e-service products via the Employee User Portal (EUP). These include Transcript Delivery System (TDS) and PTIN. IRS employees should seek help with get-it services or by calling 1-866-743-5748 when problems are encountered.

  3. The following is a list of products (key words) and some definitions to help with the terminology of e-service:

    • Bulk TIN Matching (BTM) allows an authorized payer to match up to 100K TIN and name combinations against IRS records, within 24 hours, prior to filing information returns, e.g., Forms 1099, etc.

    • e-File Application:
      Internal - allows IRS to enter paper based applications and process suitability checks and approvals.
      External - allows a third party to apply "online" to become an e-filer and allows approved applicants access to certain e-service products, e.g., DA, TDS, EAR.

    • Registration - allows an individual to register to electronically transact business with IRS via the Registered User Portal.

    • Preparer Tax Identification Number (PTIN)
      Internal - allows an IRS user to research PTIN database information prior to August 23, 2010.
      External - allows a third party to apply "online" for a PTIN by accessing the tax professionals page at https://www.irs.gov/for-Tax-Pros.

    • Transcript Delivery System (TDS)
      Internal - allows IRS employees to deliver sanitized transcripts to taxpayers or their designee.
      External - allows authorized practitioners or state users to request and receive access to sanitized transcripts.

    • Indirect Channel Management (ICM)
      Internal - allows an IRS user to recruit and manage partner relationships.

    • Interactive TIN Matching (ITIN)
      External allows an authorized payer to match up to 25 TIN and name combinations, per request, against IRS records during an "online" session. This allows a payer to check names and TINs prior to filing information returns, e.g., Forms 1099, etc.

    Note:

    Do not confuse this acronym, "ITIN" , with Individual Tax Identification Number ITIN.

21.2.1.53.1  (10-01-2015)
Transcript Delivery System (TDS)

  1. The IRS Transcript Delivery System (TDS) is an e-service, for use by both internal and external users. The system allows users with appropriate authorization to obtain customized tax information products (return transcripts, account transcripts, records of account, wage and income information, and verification of non-filing) directly and instantaneously. IRM 21.2.3.4, TDS Transcript Delivery Methods, for additional information.

    Note:

    Return transcripts are only available for the current year through 3 years prior.

  2. The following products are available through TDS:

    • Account Transcripts

    • Return Transcripts

    • Record of Account

    • Wage and Income Information Documents

    • Verification of Non-Filing

21.2.1.54  (10-01-2016)
IRS Free File Overview: The Free Way to Prepare and e-file Federal Taxes

  1. The IRS has a free way for everyone to prepare and e-file their individual federal tax returns. The program is called IRS Free File. It is available at https://www.IRS.gov/freefile or just click on the Free File icon on the https://www.irs.gov/ home page. Free File also can be used to prepare and e-file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

    Note:

    Some taxpayers trying to access free tax preparation and e-filing are using downloadable PDF fill-in forms versions of the Form 1040 series available through the Forms and Publications web site, which cannot be filed electronically. If taxpayers want to prepare and e-file their tax returns for free, they must use a Free File option above.

  2. There are two Free File options, offered through the IRS partnership with the Free File Alliance. Taxpayers can e-file either option for free.

    • Free File brand-name software, which selects the necessary forms and performs the computations.

    • Free File Fillable Forms, which offers electronic versions of IRS paper forms.

  3. Here’s how Free File works:

    • If the Adjusted Gross Income (AGI) is $64,000 or less, taxpayers are eligible for one of the software products listed on https://www.IRS.gov/freefile. These are commercial products offered by the Free File Alliance, the IRS’ private-sector partners. The software supports nearly all individual tax forms and schedules. See IRM 21.2.1.55.1, Getting Started Using Free File Software, for additional information.

    • If the AGI is more than $64,000, filers can use Free File Fillable Forms. This product performs basic math only. Taxpayers must be familiar with IRS forms and schedules, and they must be able to calculate their tax liability. See IRM 21.2.1.55.2, Getting Started Using IRS Free File Fillable Forms, for additional information.

    • All taxpayers, regardless of income, can use Free File to prepare and e-file Form 4868 at no cost to them. See IRM 21.2.1.54.3, How to use IRS Free File to File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, for additional information.

  4. Some Free File software partners may charge fees for state returns. For more information about state tax preparation and e-file including forms and fees, check the partner company’s website.

    Note:

    Free File Fillable Forms does not support any state returns.

  5. To use free federal return preparation software, taxpayers must access https://www.IRS.gov/freefile and not the partner company web sites. There are additional instructions at https://www.IRS.gov/freefile.

21.2.1.54.1  (10-01-2015)
Getting Started Using Free File Software

  1. The IRS Free File program leverages a private-sector partnership to allow taxpayers to file a federal return for free. Taxpayers must access and initiate return preparation with the Free File provider’s software from https://www.IRS.gov/freefile to be eligible for the free federal return and ensure it is free.

  2. To qualify for a free federal return from any private-sector partner, taxpayers must have an Adjusted Gross Income (AGI) of $64,000 or less, regardless of return filing status. Private-sector partners have additional qualification criteria that a taxpayer must meet to file a free federal return. Qualification criteria from all private-sector partners are displayed on the IRS Free File pages.

  3. IRS does not endorse any one Free File brand-name software product. The Free File companies are IRS authorized e-file providers.

  4. Taxpayers can use the "Find Free File Software" tool at https://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free to get help finding a private-sector partner that will provide a free return. After entering their age, state residency, and estimated income, the tool will find all the software products for which they are eligible. Once taxpayers have selected their private-sector company, they can click the product link and will then see a message that they will leave the IRS.gov website and enter the private-sector partner’s website.

  5. If taxpayers have questions or issues with the software product, they should contact the private-sector partner for help. Assistance is provided free of charge. IRS assistors can not answer questions specific to any private-sector software.

  6. For information about Free Extensions to File, see IRM 21.2.1.54.3, How to use IRS Free File to File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, below.

  7. If taxpayers inquire about Free File in Spanish, direct then to the IRS.gov En Español link on the IRS.gov home page. That page will provide a link to the Spanish version of Free File, entitled https://www.irs.gov/Spanish/Free-File:-Presente-su-Declaración-Federal-de-Impuestos-gratuitamente.

21.2.1.54.2  (10-01-2016)
Getting Started Using Free File Fillable Forms

  1. All taxpayers are eligible to use Free File Fillable Forms to prepare and e-file their federal income tax returns. Howerver, some form and program limitations may prevent some taxpayers from efiling their return. This free service can be accessed at https://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free. Alternatively, taxpayers may just click on the Free File icon on the https://www.irs.gov/ home page, then click the "Start Fillable Forms Now" button.

  2. The Free File Fillable Forms program offers nearly all individual federal tax forms and schedules. See the complete list of available forms at https://www.irs.gov/uac/List-of-Available-Free-File-Fillable-Forms.

  3. Free File Fillable Forms is best for taxpayers who have experience completing a paper Form 1040. Taxpayers must be able to read and understand tax forms and instructions.

    Caution:

    Free File Fillable Forms does not provide all the features offered by other Free File software. For example, Free File Fillable Forms does not identify available credits and deductions. It is important that the taxpayer understands the responsibility for the completeness and accuracy of any form submitted.

  4. Some important points regarding Free File Fillable Forms:

    • Taxpayers must create a new account each year.

    • The program is available from the beginning of the filing season through October 20th.

    • Taxpayers may access their Free File Fillable Forms account to prepare and file their return through October 15th of each year.

    • Taxpayers can correct and e-file previously rejected returns through October 20th each year.

    • Taxpayers are able to print a copy of their return for their records, through October 20th each year.

    • Free File Fillable Forms supports free extensions to file. See IRM 21.2.1.54.3, How to use IRS Free File to File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

  5. Free File Fillable forms does NOT support:

    • State return preparation.

    • Prior year tax return preparation.

  6. Free File Fillable Forms is third-party software. Taxpayers who select Free File Fillable Forms will be directed away from the IRS.gov web site and redirected to https://www.freefilefillableforms.com/. Free File Fillable Forms is operated by Free File Inc. formerly called the Free File Alliance, http://www.freefilealliance.org/

  7. After creating a password-protected account, taxpayers will receive automated emails from ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Taxpayers should not reply to this email for help with their account or tax return.

    Note:

    Email from this address never requests personal information from a taxpayer, such as bank account information, social security number, or date of birth.

  8. Taxpayers must select a tax form, i.e., Form 1040, Form 1040A, or Form 1040EZ and input their tax information, as directed by the form and the instructions. They must determine their tax using the tax tables and enter it in the appropriate field. Taxpayers can print and e-file their returns at no cost.

  9. Free File Fillable Forms taxpayers who successfully transmit/e-file their return will receive notification from the IRS that their return was either accepted or rejected. The notification will come through ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , usually within 2 hours from when the return was transmitted.

    Note:

    If taxpayers do not receive this email, they should check their email spam filters to ensure IRS confirmation was not misdirected to their "junk mail" or equivalent folders.

  10. Rejected returns are considered unfiled returns. The rejection notice to the taxpayer will include the MeF Business Rule for the rejection. Taxpayers should make the necessary corrections and resubmit the return.

  11. The IRS provides customer service support for this private-sector program. Taxpayers are encouraged to use the self-help tools to resolve rejected returns and other issues. Links to these tools are located on the Free File landing page at www.IRS.gov/freefile. Taxpayers who are unable to resolve their rejected return errors may call 1-800-829-1040. CSRs should authenticate the taxpayer and use the Return Review Display (RRD) system to assist taxpayers with rejected returns. CSRs should also review the Free File Fillable Forms information in the Accounts Management Research Portal. CSRs who are not account skilled should transfer these taxpayers to # 92020 (IMF ACCT English) or # 92021 (IMF ACCT Spanish); for sites using Infrastructure Upgrade Project (IUP) use 1020 (IMF ACCT English) or 1021 (IMF ACCT Spanish). Accounts trained CSRs authenticate taxpayers and use RRD to assist with rejected returns.

  12. CSRs speaking with taxpayers should encourage taxpayers encountering problems with filing their Free File Fillable Forms return, including rejected returns, to use the self-help methods available on IRS.gov. CSRs that identify taxpayers calling with a Free File Fillable Forms return problem, who have internet access available while on the call, should assist by helping the taxpayer to use the self-help methods provided on IRS.gov while on the call. CSRs should encourage the taxpayer to use the self-help method used on the call if the taxpayer encounters any other issues in filing.

  13. CSRs must not provide taxpayers with the IRS.gov Website Help Desk number for questions concerning IRS account issues or tax law questions. Also, CSRs should not refer taxpayers to the e-Help Desk for Free File Fillable Forms issues. The e-Help Desk phone line is reserved to help tax preparers and Electronic Return Originators (ERO).

  14. Taxpayers may experience access, display, and printing issues if they do not follow the recommended browsers or meet the computer requirements. See https://www.irs.gov/uac/minimum-computer-reqjuirements-for-free-file-fillable-forms.

  15. If taxpayers with income under $64,000 are having difficulty using Free File Fillable Forms, refer them to Free File brand-name software. See IRM 21.2.1.55.1, Getting Started Using Free File Software.

21.2.1.54.3  (10-01-2016)
How to use IRS Free File to File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

  1. Taxpayers who cannot file by the tax deadline must submit Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, prior to the April deadline. All taxpayers, regardless of income, can use Free File to prepare and e-file Form 4868 at no cost to them. Taxpayers may access the IRS Free File landing page at www.IRS.gov/freefile, and select a company that offers a free extension.

  2. Free File Software

    • Taxpayers must go to https://www.IRS.gov/freefile or click on the Free File icon on the IRS.gov home page.

    • Taxpayers should select "Browse the list of Free File companies" from the Free File landing page, which will display the list of Free File providers. Free File limitations for filing tax returns, as listed by each company, do not apply to filing extensions. Therefore, taxpayers may use any company offering a free extension (Form 4868). Look for the wording "Free Extensions" by the company’s offer and make a selection.

    • Taxpayers will receive an acknowledgement that the IRS has received their Form 4868.

    • Taxpayers should be aware that Form 4868 is an extension of time to file, not an extension of time to pay. If they expect to owe additional tax, the amount should be submitted with the Form 4868.

  3. Free File Fillable Forms. Taxpayers may use Free File Fillable forms to prepare and e-file Form 4868.

    • Taxpayers should select Form 4868 and complete Parts I and II.

    • To transmit, taxpayers must complete Section 1 (Verifying Your Identity) and Section 2 (Signing Your Return). These areas appear below Form 4868.

    • If taxpayers intend to make an electronic payment with the extension, they must enter an amount in Part II, line 7 and complete Section 3 (Payment Options).

    • If taxpayers intend to mail in Form 4868 and need to make a payment with the extension, refer them to the IRS.gov payments page at https://www.irs.gov/payments.

21.2.1.55  (10-01-2010)
LEXIS-NEXIS and WESTLAW

  1. The LEXIS-NEXIS electronic research contract provides easy research of authoritative information materials, such as:

    • Codes and Regulations (federal/state)

    • Legislation (federal/state)

    • Worldwide News and Business (magazines/newspapers)

    • Corporate and Financial (current assessments, analysts' reports, etc.)

  2. WESTLAW is another electronic research tool used for tax law, advanced topics, news, business, information, and all items referenced other than basic tax law.

  3. "LEXIS or WESTLAW Password" ; IRS ONLY uses the LEXIS portion of "LEXIS-NEXIS" and WESTLAW is omitted entirely in the password context.

  4. All users are "profiled" for LEXIS (to access basic tax law research) and WESTLAW (advance tax law research, news, business, and other resources).

21.2.1.56  (05-23-2016)
Deaf/Hard of Hearing (DHOH) Callers and TTY/TDD Equipment

  1. Deaf/Hard of Hearing (DHOH) callers who use the TTY/TDD equipment are instructed in Pub 17, Your Federal Income Tax (For Individuals), to call toll-free, 1-800-829-4059, for assistance with tax law and account inquiries and/or to order forms and publications. Trained CSRs, using dedicated terminals, in the Atlanta, Dallas and/or Indianapolis call sites, answer both tax law and account calls through the TTY/TDD systems.

    Note:

    Starting January 2nd, 2014 see IRM 21.1.1.6(5) (6) (7), Customer Service Representative (CSR) Duties.

  2. To contact IRS, DHOH callers may choose to use the Federal Relay Service (FRS), a state relay service or any other relay service, or any third party assistant (friend or family).

  3. If the taxpayer (through the relay operator) requests an ACS toll-free telephone number, or if the tax account is in a collection status, advise the relay assistant to call:

    • 1-800-829-7650 for W&I ACS sites,,

    • 1-800-829-3903 for SB/SE ACS sites, or,

    • 1-800-829-3909 for TE/GE ACS sites.

  4. If the call is not tax account related, (i.e., general information or tax law), you may answer any/all questions and assist the taxpayer through any assistant.

    Note:

    Starting January 2nd, 2014 see IRM 21.1.1.6(5) (6) (7)Customer Service Representative (CSR) Duties for new tax law procedures.

  5. If the call is tax account related, before providing tax account information, you must:

    1. Complete required taxpayer authentication (as outlined in IRM 21.1.3.2.3, Required Taxpayer Authentication ) as if you were talking to the taxpayer.

    2. State the following: "Since you have placed this call with the assistance of a Relay Service Operator (RSO), we assume that in doing so, you have consented to the disclosure of your return information to the Relay Services Operator to the extent necessary to assist you with your question."

      Note:

      If the customer does not agree to oral consent (through the RSO), apologize to the customer (through the RSO) for the inconvenience. Because of disclosure rules, we cannot provide the requested information through this connection without oral consent. These rules were established to protect the privacy of all taxpayers.

    3. Record ODC (Oral Disclosure Consent) statement given as a history item on the IDRS tax module and/or AMS. However, it is not necessary to record the name and telephone number of the relay service operator on the account. See also IRM 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821).

    4. Proceed with the call and provide the necessary tax account information.

    Reminder:

    Sometimes the relay services call the regular toll-free assistance lines. Treat calls in the same manner as any other tax assistance calls.

21.2.1.57  (06-27-2016)
Online Payment Agreement (OPA) for IMF Debts

  1. Online Payment Agreement (OPA) is an online application on the IRS.gov which allows individuals who owe $50,000 or less in aggregate assessed tax, penalties, and interest, to request a payment agreement. Taxpayers, who owe less than $100,000 in aggregate assessed tax, penalties, and interest can request a full pay agreement.

    Note:

    Taxpayers establishing a monthly payment agreement for balances of $25,001 to $50,000 must establish as a Direct Debit Installment Agreement (DDIA).

  2. OPA is accessed by clicking the Payments tab on https://www.irs.gov/ and clicking the Online Payment Agreement link.

  3. Using OPA, users can receive immediate notification of approval to establish streamlined payment agreements on liabilities reported using the following forms:

    • Form 1040 (MFT 30, 31)

    • Form 5329 (MFT 29)

    • Form 8278 (MFT 55)

    • Individual Shared Responsibility Payment (MFT 35/65)

  4. OPA allows taxpayers or their authorized representative (Power of Attorney) to self qualify and apply for an installment agreement. Agreements completed through OPA will have an originator code of 82 or 83.

  5. OPA offers users the ability to:

    • Agree to pay now

    • Arrange a full pay agreement balances less than $100,000 in aggregate assessed tax, penalties, and interest

    • Arrange a streamlined monthly payment agreement for individuals who owe $50,000 or less in aggregate assessed tax, penalties, and interest.

    • Establish pre-assessed streamlined agreement on current tax year Form 1040 liability for a balance of up to $50,000.

    • Establish pre-assessed agreement for the individual shared responsibility payment

    • Establish a pending agreement if they cannot pay within 72 months or by the CSED and agree to send in financial information

    • Establish an agreement on any new unassessed assessment resulting from an examination audit, Automated Underreporter (AUR) or Automated Substitute For Return (ASFR) case

  6. OPA offers the following types of monthly installment agreements:

    • Standard

    • Paperless Direct Debit Installment Agreement (DDIA)

  7. OPA will also permit individuals to:

    • Revise their payment due dates and/or amounts on an existing Standard installment agreement.

    • Revise an existing short term extension to a monthly payment plan.

    • Revise a routine installment agreement to a direct debit or payroll deduction plan.

    • Reinstate a defaulted agreement if the taxpayer has defaulted more than twice in the past (TERM-IA) indicator on CC ENMOD. There is no change to Voice Balance Due (VBD).

    • Receive information on delinquent tax returns.

    • Establish agreements on accounts in notice status or status 22/24

    Note:

    An IDT indicator does not block the use of OPA.

  8. OPA cannot be used to :

    • Establish tiered payments (multiple payment amounts). Only one payment amount can be input.

    • Revise a DDIA in any way. This includes adding a liability, changing a payment date, payment amount, updating a routing or account number, or changing an existing DDIA to a regular IA.

    • Establish agreements on accounts in status 26 and 72

    • Add unassessed balances to existing agreements on assessed balances.

    • Establish agreements with both assessed and unassessed modules.

    • Establish agreements if the account has an interest or penalty computation hold.

    • Establish cross-reference agreements.

    • Establish Manually Monitored Installment Agreements (MMIA).

    • Establish Non-Streamlined payment agreements.

  9. The OPA application determines eligibility, filing compliance, and checks for excluding account conditions. The system verifies that the proposed payment meets the streamlined agreement criteria, and provides a payment estimator tool to help determine a realistic payment amount.

  10. Taxpayers register for Secure Access eAuthentication (see IRM 21.2.1.59, Secure Access eAuthentication) when using the OPA application. By registering, the user creates a user name/password combination which retains the information and expedites future access to OPA. As part of registration, the taxpayer is asked for an email address. A confirmation code is sent to that email address for the taxpayer to continue with the registration process.

    Caution:

    The confirmation code sent to their email is only valid for 15 minutes.

  11. The Secure Access eAuthentication application requires the taxpayer to provide the following information:

    • Name

    • Social Security Number (SSN) or Taxpayer Identification Number (TIN)

    • Date Of Birth (DOB)

    • Address

    • Filing Status (FS)

  12. CSRs speaking with taxpayers should encourage taxpayers encountering problems to use the self-help methods available on IRS.gov. CSRs that identify taxpayers calling with a problem, who have internet access available while on the call, should assist by helping the taxpayer to use the self-help methods provided on IRS.gov while on the call. CSRs should encourage the taxpayer to use the self-help method used on the call if the taxpayer encounters any other issues.

  13. Taxpayers who want to establish a pre-assessed agreement on a current tax year Form 1040 liability or individual shared responsibility payment prior to a notice being sent are requested to enter the balance they will owe, as shown on their Income Tax Return.

  14. Power of Attorneys (POA) who have filed Form 2848 and are authorized to represent a taxpayer may use OPA on their client(s) behalf. To authorize, the POA must enter;

    • Taxpayer's SSN or ITIN

    • Their Centralized Authorization File (CAF) number, and

    • Either the six digit Caller ID number from the taxpayer's notice or signature date on Form 2848

    This information is used to ensure that the POA is authorized to represent their client in the OPA application. If subsequent Forms 2848 have been filed by the POA, the POA signature date of the most recent Form 2848 will be required. All outstanding tax periods must be included on the most recently filed Form 2848 for the OPA application to process.

  15. Taxpayers who want to establish a pre-assessed agreement after receiving notification of new assessment resulting from an examination audit, Automated Underreporter (AUR) or Automated Substitute for Return (ASFR) case are requested to enter the balance they will owe, as shown on their CP 2000 or Notice of Deficiency. They must follow the authentication procedures shown in (10) and (11) above.

  16. Power of Attorneys who wish to establish a pre-assessed agreement for their client(s) on a current tax year Form 1040 liability or individual shared responsibility payment , prior to a notice being sent, are requested to enter the balance owed, as shown on their client’s Income Tax Return. Power of Attorneys who have filed Form 2848 with the IRS and are authorized to represent their client(s) (the taxpayer) are required to enter their client’s SSN or ITIN; if filing jointly, the spouse’s SSN or ITIN; the AGI from the client’s last year’s Income Tax Return; and their own CAF number. This information is used to ensure that the POA is authorized to represent their client in the OPA application.

  17. Users are allowed three attempts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  18. Transactions that do not post due to system/network problems (e.g., IDRS application down) or account conditions beyond design for the application will be captured in the OPA Management Action Report (MAR) and will be worked by designated personnel in ACS Support and CSCO at Cincinnati (for SBSE), Fresno (for W&I, ACS cases Status 22/24) and Kansas City (for W&I non-ACS cases). For more information, see IRM 5.19.1.5.6.1, OPA Management Action Reports (MAR).

21.2.1.57.1  (10-01-2016)
Online Payment Agreements for Certain BMF Debts

  1. Online Payment Agreement (OPA) is an online application on IRS.gov, which allows in-business BMF taxpayers to request an In Business Trust Fund (IBTF) Express installment agreement for balances of $25,000 or less (CC SUMRY balance). The dollar threshold for granting the IBTF Express IA includes only the unpaid balance of the assessment (UBA); however, the UBA and all accruals must be full paid in 24 months. The amount owed must be from the current period, or prior calendar year. More BMF installment agreement capabilities may be added with future updates.

  2. The OPA will protect the statute, ASED and CSED by automatically determining if the proposed monthly payments will full pay the amount (including accruals) in the time allowed. If the payment does not meet criteria, OPA will advise the user of the minimum monthly payment needed to proceed. Balances of $10,001 to $25,000 are required to be Direct Debit Installment Agreements (DDIA).

  3. All DDIA agreements must be enacted through a United States financial institution. OPA will not allow installment agreements of any type or balance for taxpayers listing a foreign address on filed returns.

  4. Using OPA, users can receive immediate notification of approval to establish payment agreements on liabilities reported using the following forms:

    • Form 941 (MFT 01)

    • Form 1120 (MFT 02)

    • Form 1065 (MFT 06)

    • Form 940 (MFT 10)

    • Form 943 (MFT 11)

    • Form 944 (MFT 14)

    • Form 945 (MFT 16)

    • Form 2290 (MFT 60)

  5. OPA allows businesses or their authorized representative (Power of Attorney) to self-qualify and apply for an installment agreement.

  6. OPA offers users the ability to:

    • Agree to pay now

    • Arrange a short-term agreement

    • Arrange a monthly payment agreement

  7. OPA offers the following types of monthly installment agreements:

    1. Standard

    2. Paperless Direct Debit Installment Agreement (DDIA)

  8. OPA will also permit individuals to:

    • Revise their payment due dates and/or amounts on an existing agreement (Standard only)

    • Convert an existing short term extension to a monthly payment plan

    • Convert a routine installment agreement to a direct debit or payroll deduction plan

    • Establish agreements on accounts in notice status or status 22/24

  9. OPA can NOT be used to:

    • Establish tiered payments (multiple payment amounts). Only one payment amount can be input

    • Cancel an existing DDIA

    • Revise a DDIA in any way. This includes adding a liability, changing a payment date, payment amount, or updating an Account Number

    • Establish agreements on accounts in status 26, and 72

  10. If a business or POA meets the above criteria and agree to use OPA, advise them of the authentication process.

21.2.1.57.1.1  (09-12-2014)
Verification Issues for BMF OPA Users

  1. BMF taxpayers (or their POAs) must verify their authority to establish an online agreement by providing:

    • The business EIN

    • The date the EIN was established (MM/YYYY) and

    • The business address

    • The Caller ID number provided in their notice

  2. Some taxpayers have difficulty in providing the date the EIN was established. Inform the taxpayer that this date can be found on the CP Notice 575, Notice of New Employer Identification Number. It is the date the notice was issued.

  3. If the caller does not have access to that notice, complete BMF authentication as described in IRM 21.1.3.2.3, Required Taxpayer Authentication. Once you have successfully completed this, you may provide the information to the taxpayer. The Entity Establishment Date consists of the month and year the business was established (MMYYYY). Locate the information using CC ENMOD . The date is located in the BMF Entity Data section and identified as "Entity Establishment Date."

  4. Power of Attorneys (POA) who have filed Form 2848 with the IRS and are authorized to represent their client(s) are required to enter their client’s EIN, followed by their own Centralized Authorization File (CAF) number, the six digit Caller ID number from the notice or signature date on Form 2848. This information is used to ensure that the POA is authorized to represent their client in the OPA application.

  5. Users are allowed three attempts to match shared secrets. If they fail the third time, they will receive a failed taxpayer login message that will provide a toll-free phone number to call for assistance.

21.2.1.58  (06-27-2016)
Secure Access eAuthentication

  1. Secure Access eAuthentication is verification software that performs background processing for visible IRS Online applications. It is a common framework used to:

    • Verify Identity

    • Register individuals, and

    • Provide credentials for electronic access to IRS systems and applications

  2. Secure Access eAuthentication is utilized by three applications:

    1. Get Transcript ONLINE - See IRM 21.2.1.53, Get Transcript, for more information.

    2. IP PIN - See IRM 25.23.2.21, Identity Protection Personal Identification Number (IP PIN), for more information.

    3. Online Payment Agreement - See IRM 21.2.1.58, Online Payment Agreement (OPA) for IMF Debts, and IRM 21.2.1.58.1,Online Payment Agreement for Certain BMF Debts, for more information.

  3. Users must register to use Secure Access eAuthentication. When registering, the user creates a username/password combination which expedites future access to IRS systems and applications as their authentication information is retained. As part of registration, the taxpayer is asked for an email address. A confirmation code is sent to that email address for the taxpayer to continue with the registration process.

  4. The Secure Access eAuthentication application requires the user provide the following information:

    • Name

    • Email

    • Social Security Number (SSN) or Taxpayer Identification Number (TIN)

    • Date Of Birth (DOB)

    • Address (last filed return)

    • Filing Status (FS)

  5. When additional authentication is needed, Secure Access eAuthentication may request information regarding a financial account. This includes the last 8 digits of a credit card number, a home equity line of credit loan number, a mortgage or home equity loan number, or an auto loan number. This process is prescribed by the National Institute of Standards and Technology.

    Note:

    The IRS will only use the financial information to verify the taxpayer’s identity. The taxpayer will not be charged a fee, and the companies do not provide the IRS with information regarding account balances. This action creates a "soft inquiry" entry on the taxpayer’s credit report and is listed as an IRS inquiry with the date of the request. Soft inquiries do not affect the taxpayer’s credit score. Soft inquiries are displayed in the version of the credit profile viewable only to consumers and are not reported to lenders. Once the taxpayer has completed registration for an application that requires account validation, no additional soft inquiries are generated.

  6. Secure access eAuthentication also requires a mobile phone number associated with the taxpayer’s name. This must be a mobile phone and not a land line or virtual phone (e.g., Skype, Google voice, etc.). The phone number cannot be on a "Pay As You Go" plan and the number must be US-based (country code +1).

    Note:

    A text message containing a security code will be sent to the mobile phone number supplied. Standard text messaging and data rates may apply. The taxpayer will then need to enter the security code into the Secure Access eAuthentication system to continue with the registration process. This security code is only valid for 10 minutes.

  7. Once the user authenticates and establishes a single credential (username and password) they can access available online services, such as Get Transcript ONLINE.

  8. Taxpayers who have placed a security credit freeze with Equifax may call to report they are unable to pass registration when using IRS.gov applications that use Secure Access eAuthentication (e.g., IP PIN, Get Transcript, etc.). Advise the taxpayer to contact Equifax and ask them to temporarily remove the credit freeze. This will allow the taxpayer to register. Once successfully registered, advise the taxpayer to request Equifax to restore the freeze on their account. Additional Information on authenticating identity is available on IRS.gov at https://www.irs.gov/uac/Taxpayer-Identity-Verification-Information.

  9. The launch of eAuthentication and Get Transcript ONLINE may generate some phone calls. Follow IRM 21.2.3.5.9.2 , IMF Transcript Ordering.

    Note:

    AM Toll-free employees should not address questions related to Secure Access eAuthentication. Advise the caller to follow guidance provided by the application.

  10. Returning users to the Secure Access eAuthentication system will be advised that extra validation is required to protect tax information. After entering their username and password, they will be classified into one of two groups:

    • Returning Users - previously registered and requiring step-up authentication.

    1. These users are required to go through the registration process that they have not previously completed. This will include supplying information regarding a financial account, a mobile phone number associated with their name, and completing the security code process.

    2. Once the user has successfully completed these additional steps for verification, they will be granted access to the Get Transcript ONLINE application.

    • Returning Users - previously registered with step-up authentication already completed.

    1. These users will be sent a security code to the mobile phone they used to complete the registration process. The user will need to enter the security code before gaining access to the Secure Access eAuthentication system.

  11. The EPSS Help Desk will assist callers who have already established an online account with certain account maintenance issues. EPSS supports the following types of Secure Access eAuthentication calls:

    • Login issues (password, User ID, locked out)

    • Customer believes they did not create account

    • Customer needs account disabled/enabled

    • Customer is experiencing problems with accessibility software (Dragon, Zoomtext, etc.)

  12. CSRs speaking with taxpayers should encourage taxpayers encountering problems to use the self-help methods available on IRS.gov.

  13. If the caller is experiencing an issue as stated in (11) refer the caller to the toll free number provided in the system message.

    Note:

    The EPSS Help Desk does not provide technical support for other issues involving Secure Access eAuthentication, Get Transcripts, Online Payment Agreements (OPA) or the IP PIN application.

21.2.1.59  (03-30-2016)
Where’s My Amended Return (WMAR)

  1. Where’s My Amended Return (WMAR) is an Integrated Customer Communication Environment (ICCE) application, established March 18, 2013, to provide automated access to the processing status of Form 1040X US Amended Return. It is available in English and Spanish, and accessible by:

    • Telephone, using the toll-free number 866-464-2050 (must use a touch-tone phone)

    • Using the “Where’s My Amended Return?” (WMAR) online tool available from the home page on IRS.gov

  2. Taxpayers can track the status of their Form 1040X for the current year and up to three prior years. They must wait three weeks after filing the form before using WMAR. Consistent messages are provided by the phone and web versions of WMAR.

  3. Taxpayers authenticate by inputting the following information:

    1. Social Security Number or Taxpayer Identification Number

    2. Date of Birth

    3. Zip Code

  4. Once authenticated, taxpayers can find out the status of their Form 1040X across the following three processing stages:

    1. Received Status – Taxpayer is provided the received date and told to wait up to 16 weeks for processing

    2. Adjusted Status – Taxpayer is given the adjustment posting date and advised to wait 3 weeks to receive their refund and/or notice.

    3. Completed Status – Taxpayer should have received their refund and/or notice information and the inquiry date is greater than 3 weeks from the adjustment date.

  5. WMAR is designed to lock out taxpayer’s after three failed attempts to authenticate. The lock out period for three failed attempts is a 24 hour period.

  6. The telephone WMAR application is designed to route taxpayers to a live assistor if Identity Theft or Date of Death indicators are located on the Integrated Data Retrieval System (IDRS). If the Online WMAR application identifies either of those indicators, it will provide a callback number with a specific three-digit extension

  7. The following Amended Tax Returns cannot be accessed using WMAR:

    1. Carrybacks (Applications and Claims)

    2. Form 843 Claims

    3. Injured Spouse Claims

    4. Form 1040 marked as an amended or correct return

    5. Amended Returns with a foreign address

    6. Business Amended Returns

    7. Any amended return routed/received outside the processing operations and received by a specialized function (i.e. Examination Department, Bankruptcy Department, Form 1040X response to a CP2000, Request for Verification of Unreported Income, Payments or Credits)

  8. For more information, see IRM 21.5.3.3.1, Locating Amended Returns (Form 1040X), and IRM 21.4.1.3, Refund Inquiry Response Procedures.

21.2.1.60  (03-30-2016)
IRS PayNearMe - Paying with Cash at a Retail Partner

  1. PayNearMe is a new payment option available to taxpayers through https://www.irs.gov/Payments and participating retail stores. It is a secure walk up cash payment method that converts cash payments to electronic transactions. It utilizes a barcode and retail locations to complete the transactions.

  2. This cash option is only available at participating 7-Eleven locations. There are no participating locations in the following states at this time: Alabama, Alaska, Arkansas, Georgia, Hawaii, Louisiana, Minnesota, Mississippi, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Tennessee, and Wyoming.

  3. PayNearMe is a payment option for taxpayers who prefer to pay their taxes with cash.

  4. PayNearMe will be deployed in phases:

    • Individual Master File (IMF) taxpayers will have access March 17, 2016

    • The Business Master File (BMF) option is currently unavailable

  5. Official Payments, one of the payment processors, will offer PayNearMe as a payment option on their site for individuals. This can be accessed on the IRS.gov website by going to the "Payments" tab, or by entering the website address https://www.irs.gov/Payments, and selecting the "Cash at a Retail Partner" link in the "Other Ways You Can Pay" box.

  6. PayNearMe charges a service fee which is separate from tax obligations. The fee structure is:

    • Individuals will pay $3.99 per transaction with a $1,000.00 daily payment limit

  7. Taxpayers who want to pay their taxes with cash through the IRS PayNearMe option should do the following:

    1. Taxpayers should go to https://www.irs.gov/Payments to begin the payment process. In the "Other Ways You Can Pay" box, click on "Cash at a Retail Partner" and follow the instructions on that page.

    2. The taxpayer will receive an email from Official Payments confirming their information.

    3. The IRS will then verify the information sent by Official Payments.

      Note:

      This process may take two to three business days.

    4. PayNearMe notifies the taxpayer via email with next step instructions and a barcode. The barcode is available to be printed or displayed on mobile devices.

      Note:

      The PayNearMe barcode will expire in 7 days after it is emailed to the taxpayer.

    5. Taxpayers present the barcode at a participating retail location. The retail clerk scans the barcode and collects the cash and fee.

    6. The retail clerk presents the taxpayer with a receipt to confirm the transaction. Important: Taxpayers should keep this receipt as proof of payment.

    7. Official Payments and PayNearMe send transactions for processing.

      Note:

      It usually takes two business days for payments to be submitted to the IRS. Taxpayers should allow for this to make timely payments in order to avoid interest and penalties.

  8. Telephone assistors should encourage taxpayers inquiring about paying a balance to utilize IRS Direct Pay, IRM 21.2.1.48.1, IRS Direct Pay, as a quick and easy way to make payments towards their IMF balance. Assistors should encourage cash paying taxpayers to use the PayNearMe option.

    Note:

    Taxpayers can access Direct Pay online through IRS.gov where they may select the "Payments" tab and follow the instructions.

  9. IRS PayNearMe is currently only available to IMF taxpayers. The service can be used for the following payment types:

    • Form 1040 series

    • Form 1040 ES Estimated Tax

    • Form 4868 Automatic Extension to File Taxes

    • Installment Agreements

    • Trust Fund Recovery

    • Form 5329 Return for Individual Retirement Arrangement Taxes

  10. Please advise joint filers using PayNearMe to complete the "Verify Identity" page using the primary filer's information, even if the taxpayer is making an estimated tax payment. This will ensure the payment is promptly applied to the balance due account.

  11. IRS PayNearMe is a self-help application, so the number of phone inquiries should be limited. For more information, see IRM 21.2.1.61.1, Responding to IRS PayNearMe Inquiries.

    Note:

    The IRS PayNearMe web pages are not yet available in Spanish.

21.2.1.60.1  (02-29-2016)
Responding to IRS PayNearMe Inquiries

  1. Important: Telephone assistors should encourage taxpayers to use IRS Direct Pay, IRM 21.2.1.48.1, IRS Direct Pay, for inquiries on paying a balance due account. Telephone assistors should encourage cash paying taxpayers to use the PayNearMe option. Taxpayers may access IRS PayNearMe by typing "Payments" into the IRS.gov search field and clicking on the "Cash at a Retail Partner" link.

    Note:

    Emphasize that PayNearMe is a quick and easy way to make cash payments towards their IMF balance.

    Note:

    Inform the taxpayer there are fees to use this service.

  2. Since IRS PayNearMe is a self-service application, the taxpayer should be able to address most issues using online resources. Some PayNearMe users, however, may experience difficulty completing the identity verification process, and will ask you to check that the information they are using is accurate. Warning: You must successfully complete Taxpayer Authentication as described in IRM 21.1.3.2.3, Required Taxpayer Authentication, before providing the caller with any account information. If the taxpayer's only issue is to verify address information, it will be necessary to complete additional authentication as described in IRM 21.1.3.2.4, Additional Taxpayer Authentication.

  3. If taxpayers experience technical difficulties with the PayNearMe application, they should be directed to the PayNearMe customer service number: 888-714-0004.

  4. Submitting a payment with PayNearMe may require the user to provide information from a different tax year to verify their identity. This is where many verification errors occur, as users tend to use the most current information. Explain to the caller the following steps:

    • Tax Information - The user enters payment information, including, form type, reason for payment, and the tax year the payment should be applied to.

    • Verify Identity - The user enters information from a past year tax return for identity verification purposes. The tax year the user selects for identification verification does not have to match the tax year for the payment. The user must use the exact information (name, address, filing status, etc) from the return they are using to verify their identity.

  5. Follow the instructions below for other IRS PayNearMe inquiries:

    If Then
    Taxpayer calls with general questions about IRS PayNearMe Tell the taxpayer that a link for IRS PayNearMe can be found on the "Payments" tab of the IRS.gov home page by clicking the "Cash at a Retail Partner" link.
    Taxpayer calls and they are experiencing difficulties while at a retail location while trying to make their payment. Tell the taxpayer to call the PayNearMe customer service telephone number 888-714-0004.
    Taxpayer calls to verify payment. Research IDRS. See IRM 21.5.7.4.7.15.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer. The fourth digit in the EFT number will be a "6" and the 10th and 11th position will be "59" , "60" , or "61" .
    Taxpayer calls asking if payments made on the due date will be applied on the same day. Tell the taxpayer that as long as the payment, including an installment agreement payment, was submitted on or before the due date and a confirmation number was received, the payment will be considered timely.

    Note:

    Applicable penalties and interest will continue to accrue on unpaid balances until paid in full.

    Taxpayer calls with IRS PayNearMe related penalty issues SeeIRM 21.2.1.61.2.1 , Removing Penalties Due to Unsuccessful PayNearMe Payments
    Taxpayer calls but didn’t receive email notification with barcode Taxpayer verification may take up to 48 hours to process as well as generate the email with the barcode. Additionally, advise taxpayers to check their spam filters to ensure the email hasn’t been sent to a spam folder in their email inbox. If this is not successful, provide the taxpayer with the PayNearMe customer service number 888-714-0004.

21.2.1.60.2  (02-29-2016)
Inquiries Regarding Verification of Official Payment PayNearMe Payments

  1. Taxpayers will receive a receipt from the retail location. Important: Taxpayers should keep this receipt as proof of payment.

  2. Taxpayers will also receive a notification of a successful transaction via email from Official Payments

  3. If the taxpayer did not receive an email advise taxpayers to check their spam filters to ensure the email hasn’t been sent to a spam folder in their email inbox. If the taxpayer did not receive a confirmation email, apologize and provide the taxpayer with the PayNearMe customer service telephone number 888-714-0004.

  4. Research IDRS. See IRM 21.5.7.4.7.15.1, Electronic Funds Withdrawal (Direct Debit) and Credit Card Payment Tracer. The fourth digit in the EFT number will be a "6" and the 10th and 11th position will be "59" , "60" , or "61" .

21.2.1.60.2.1  (02-29-2016)
Removing Penalties Due to Unsuccessful PayNearMe Payments

  1. In rare cases, you may consider abating penalties resulting from an unsuccessful PayNearMe payment. This is true even if the taxpayer has not received the official penalty notice, and whether or not the taxpayer requests the abatement. A penalty may be abated without any written communication when it can be determined that the penalty should not have been assessed in the first place. See IRC 6404(a)(3), for additional information. If you can determine without additional information from the taxpayer that the penalty should not have been assessed, then the penalty can be abated without any written documentation.

    Caution:

    You must research the account thoroughly to make this determination.

  2. If you determine that the situation meets the criteria described in paragraph (1) and the penalty should not have been assessed, abate the penalty using a TC 281, RC 065, and PRC 015.

  3. Apologize verbally during telephone contact, or in writing for correspondence cases, if a notice or bill was sent to the taxpayer due to a penalty assessed in error.

  4. Determine if the taxpayer had an installment agreement that was affected by this situation. If so, follow IRM 21.2.1.61.2.2, Installment Agreement Issues Due to Unsuccessful PayNearMe Payments.

  5. In all other cases you must follow normal penalty relief procedures as described in IRM 20.1.2.1.6, Correcting Incorrect Assessments. IRS employees have a responsibility to correct incorrect penalty assessments when they are identified and the statutory period for making the correction has not expired. IRC 6404(a) provides authority for IRS to abate at any time the unpaid portion of any liability that is excessive in amount, or that is erroneously or illegally assessed. A liability is excessive to the extent that it exceeds the amount provided for by law.

21.2.1.60.2.2  (02-29-2016)
Installment Agreement Issues Due to Unsuccessful PayNearMe Payments

  1. If a taxpayer's installment agreement (IA) erroneously defaulted due to the situations described in IRM 21.2.1.61.2.1, Removing Penalties Due to Unsuccessful PayNearMe Payments follow the guidance in IRM 21.3.12.5.7, Taxpayer Requesting Reinstatement of Defaulted Installment Agreement, to reinstate the IA.

21.2.1.61  (10-01-2016)
Department of Education

  1. The IRS has an ongoing partnership with the Department of Education (ED) to enhance the ability of financial aid applicants to obtain the necessary income verification items required to successfully complete financial aid forms. This IRM section is based upon internal stakeholder consensus and contains the procedures that should be followed by call site and Taxpayer Assistance Center (TAC) employees.

  2. This IRM section incorporates interim guidance memorandum WI-21-0314-03, Interim Guidance on Department of Education (ED) Procedures, issued April 7, 2014.

21.2.1.61.1  (10-01-2016)
Background

  1. College bound students applying for financial aid through the Department of Education’s Free Application for Federal Student Aid (FAFSA) use a tool developed by the IRS and the Department of Education. The tool is internally known as the Federal Student Aid - Datashare (FSA-D), and externally as the IRS Data Retrieval Tool (IRS DRT). There are two parts to FSA-D:

    • FAFSA on the Web (FOTW)

    • Income Driven Repayment (IDR) includes: Income Based Repayment (IBR), Income Contingent Repayment (ICR), and Pay as You Earn (PAYE) Plans.

21.2.1.61.2  (10-01-2016)
Free Application for Federal Student Aid (FAFSA)

  1. The taxpayer could be a student, parent of a student, or the spouse of a student applying for financial aid.

  2. IRS DRT retrieves tax return information for the respective school year. Taxpayers can select whether or not to transfer the tax return information into the student loan application.

  3. While completing the student loan application, taxpayers are given the option of accessing the IRS DRT so individual tax information can be populated into the FAFSA. Assistors can provide specified line amounts from the processed return. Refer to the list below.

    Note:

    If identity theft (IDT) is an issue, see (5), scenario 4 below.

    • Type of return

    • Number of exemptions

    • Adjusted gross income

    • Income tax after credits "Per Computer" figures on Command Code (CC) RTVUE

    • Tax exempt interest income

    • Non-refundable Education Credit


    If an actual transcript is needed, follow IRM 21.2.3.5.9.2, IMF Transcript Ordering.

  4. Some of the questions on the FOTW require calculations that are not on the tax return transcript as a singular item. These calculations are NOT to be done by assistors, but rather, done by the taxpayer. However, you can provide specific line item information from the tax return needed for the taxpayer to calculate the FOTW field. Fields include:

    • Income Earned From Work (IEFW) = wages, plus business income, plus farm income

    • Individual Retirement Account (IRA) Deductions = IRA payments, plus Self- Employment Retirement Plan deductions

    • Untaxed IRA Distributions = Gross IRA distributions, minus taxable IRA distributions

    • Untaxed pension portions = Gross pension/annuity, minus taxable pension/annuity

    Note:

    DO NOT complete any calculations as the applicant needs to make those calculations.


  5. If taxpayers contact the IRS when they encounter problems with the tool, follow the instructions outlined in the table below.

    If Then
    Scenario 1: The taxpayer requests technical support to resolve an error message (technical difficulties, data not found) or a broken link issue. Refer the taxpayer to 1-800-4FED-AID.

    Note:

    Do not attempt to provide any technical support for the IRS DRT.

    Note:

    Assistors should verify with the taxpayer if there is an immediate need for a transcript. If yes, refer to Scenario 3.

    Scenario 2: The taxpayer cannot authenticate (entries do not match IRS records) or is unable to obtain tax information and requests entity information support.

    Note:

    IRS DRT error messages include:

    • “Your entries do not match IRS records.”

    • “Your address does not match IRS records.”

    Follow Disclosure guidelines as outlined in IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4,Additional Taxpayer Authentication, as warranted, and provide the requested information.

    Note:

    If there is an Identity Theft (IDT) indicator or the assistor suspects IDT, see Scenario 4 below.

    Scenario 3: The taxpayer requests a tax account or tax return transcript. Follow IRM 21.2.3.5.9.2, IMF Transcript Ordering.

    Note:

    If there is an IDT indicator or the assistor suspects IDT, see Scenario 4 below.

    Scenario 4: The taxpayer is unable to obtain tax information and requests support with a confirmed or unconfirmed IDT.

    Note:

    IRS DRT error message is “Unable to provide the federal income tax information.”


    In these cases the student will need a tax return transcript.
    Refer to IRM 21.2.3.5.8, Transcripts and Identity Theft.

21.2.1.61.3  (10-01-2016)
Transcript Requests with Identity Theft (IDT) Issues

  1. The Department of Education (ED) established a verification process for applicants who are victims of IDT and cannot secure a transcript through normal IRS channels. The ED agreed to accept the alternate transcript generated through the IRS Tax Return Data Base (TRDBV).

  2. If taxpayers have an IDT indicator on their account or the assistor suspects IDT, refer to IRM 21.2.3.5.8, Transcripts and Identity Theft.

21.2.1.61.4  (10-01-2016)
Amended Returns

  1. The Department of Education (ED) discourages applicants from using the IRS DRT if they have filed an amended tax return. A tax return transcript is available but does not show the line-by-line changes for an amended return. For income verification purposes, ED has directed taxpayers to provide the following:

    • either a signed photocopy of the originally filed tax return, a tax return transcript, or a record of account transcript, AND

    • a signed copy of the Form 1040X, Amended U.S. Individual Income Tax Return

21.2.1.61.5  (10-01-2016)
Income Driven Repayment (IDR) Plans - Adjusted Gross Income

  1. The taxpayer is identified as a borrower of a student loan who is applying for a repayment plan.

  2. The IRS deployed an enhancement to the FSA-D application to include repayment plans. While FSA-D retrieves tax return data for successfully authenticated student loan applicants, the new functionality retrieves only the adjusted gross income (AGI) of successfully authenticated borrowers applying for a repayment plan (IBR, ICR, PAYE) through the ED’s StudentLoans.gov website.

  3. The AGI for the requested tax year or one previous tax year is retrieved. For example, for 2014, the IDR tool will first check tax year 2014 and provide the 2014 AGI if it is available. If the 2014 data is not available, the IDR tool will check and return the 2013 AGI if that year is available. If neither year is available, the applicant will receive a message indicating that no data was found.
    Follow the instructions in the table below:

    If Then
    Scenario 1: The applicant requests technical support to resolve an error message (unable to provide the federal income information, technical difficulties, data not found) or a broken link issue. Refer the applicant to ED’s Direct Loan Applicant Services Center at 1- 800-557-7394.

    Note:

    Do not attempt to provide any technical support.

    Scenario 2: The applicant cannot authenticate (applicant entries do not match IRS records) and requests entity information. Follow Disclosure guidelines as outlined in IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication, as warranted, and provide the requested information.

    Note:

    If the assistor suspects IDT, refer to IRM 10.5.3.2.5.2, IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID and IRM 21.9.2.3, Identity Theft-Telephone Overview.

    Scenario 3: The applicant requests AGI figures after receiving the message “No Data was found.” Follow Disclosure guidelines as outlined in IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication, as warranted. Research to determine if the return has processed. Follow IRM 21.4.1.3, Refund Inquiry Response Procedures.

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