21.5.1 General Adjustments

Manual Transmittal

August 24, 2018

Purpose

(1) This transmits a revised IRM 21.5.1, Account Resolution - General Adjustments.

Material Changes

(1) IRM 21.5.1.4.4 added instruction to input adjustment for loose form.

(2) IPU 17U1694 issued 12-18-2017 IRM 21.5.1.4.4.1 Update to provide guidance on selection of queue for TPP 4442 issuance.

(3) IPU 17U1694 issued 12-18-2017 IRM 21.5.1.4.4.1 Added note regarding the address on the 1040X for the issuance of the 309C letter.

(4) IRM 21.5.1.4.4.1, added Spanish version of 309C paragraph, also added 5071C letter to list of TPP letters..

(5) IPU 17U1694 issued 12-18-2017 IRM 21.5.1.4.4.1 Added note regarding the address on the original return for the issuance of the authentication letter.

(6) IPU 17U1694 issued 12-18-2017 IRM 21.5.1.5.2(4) Update guidance under reroute to include the following forms can now be efaxed - Form 2848 Power of Attorney (POA) or Form 8821 Tax Information Authorization.

(7) IRM 21.5.1.5.5 added instruction to open control base to monitor 150 posting, also added Note regarding EO and specific case processing.

(8) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.6 Added link to learning tab for the suggested telephone script for outgoing calls.

(9) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.9.1 Deleted/revised ACA category codes for scanning into CIS.

(10) IPU 18U0559 issued 03-30-2018 IRM 21.5.1.5.9.1 Revised ACA category codes for scanning into CIS (added ACA Loose Form ACA5).

(11) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.9.2 Deleted second sentence in (2) regarding a designated team profiled to receive quick closure document type.

(12) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.9.2 Deleted second sentence in (3) regarding if extensive research or analysis is involved for quick closure document type.

(13) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.9.2 Deleted (4) regarding quick closure document type will be closed/routed or reclassified.

(14) IPU 18U0105 issued 01-11-2018 IRM 21.5.1.5.9.2 Deleted (5) and note regarding If unable to close quick closure document type expeditiously during initial review.

(15) IPU 18U0208 issued 01-31-2018 Exhibit 21.5.1-1 revised guidance to AM screeners related to IDT5/IDT7 category codes.

Effect on Other Documents

IRM 21.5.1, General Adjustments dated Oct. 1, 2017 is superceded. Interim Procedural Updates (IPU) 17U1694 (dated 12-18-2017), 18U0105 (dated 01-11-2018), 18U0208 (dated 01-31-2018), and 18U0559 (dated 03-30-2018).

Audience

All IRS organizations - Small Business/Self Employed (SB/SE), Large Business & International (LB&I), Tax Exempt and Government Entities (TE/GE) and Wage and Investment (W&I), Appeals, Employee Plans (all employees performing account work).

Effective Date

(10-01-2018)

Karen Michaels
Director, Accounts Management
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: This IRM provides the procedures for all functions making general adjustments through the Integrated Data Retrieval System (IDRS) to any one of the different Master File Tax Codes (MFTs). These procedures are available for use when an account adjustment must be made and there are no procedure(s) that cover the process in a specific Internal Revenue Manual (IRM).
     

  2. Audience: The primary users of the IRM are all IRS employees in Business Operating Divisions (BODs) who are in contact with taxpayers by telephone, correspondence, or in person.

  3. Policy Owner: The Director of Accounts Management.

  4. Program Owner: Process and Program Management (PPM), Accounts Management (AM), Wage and Investment (WI).

  5. Primary Stakeholders: The primary stakeholders are organizations that Accounts Management collaborates with; for example; Return Integrity & Compliance Services (RICS), Compliance and Submission Processing.

  6. Program Goals: Program goals for this type of work are included in the Accounts Management Program Letter as well as IRM 1.4.16, Accounts Management Guide for Managers.

Background

  1. Employees in the Accounts Management (AM) organization respond to taxpayer inquiries by telephone in our customer service centers, in person, at our walk-in assistance center, in addition to processing amended returns, claims, duplicate filed returns, loose forms, correspondence, etc., and address all other internal adjustment requests.

Authority

  1. Refer to IRM 1.2.21, Policy Statements for Customer Account Services Activities, for information.

  2. The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. The Taxpayer Bill of Rights adopted by IRS in June 2014 and codified at IRC § 7803(a)(3), provides the taxpayers have the right to receive prompt, courteous, and professional assistance in their dealing with the IRS. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable. They have their right to speak to a supervisor whenever quality service is not received. For additional information, refer to the Taxpayer Bill of Rights.

Responsibilities

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

  2. Additional information is found in IRM 1.1.13.9.4, Accounts Management, and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Controls

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

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

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

  4. Document authorized disposition, management oversight, please refer to Records Control Schedules, for reporting and handling classified waste, to ensure records are not being destroyed.

Acronyms

  1. For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Related Resources

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

What Are General Adjustments?

  1. General adjustments are changes made at the request of the taxpayer on Individual Master File (IMF), Business Master File (BMF), International tax accounts, and Internal Transcripts. Adjustments may be required because of:

    • Processing errors on returns

    • Missing schedules

    • Claims

    • Amended returns or

    • Internal Transcripts

General Adjustments - Research

  1. To handle general adjustments, you may need to reference other Internal Revenue Manuals (IRMs) such as:

    List of Reference IRMs List of Reference IRMs
    IRM 3.8.46.1, Discovered Remittances IRM 21.5.3, General Claims Procedures
    IRM 5.12.3, Lien Release and Related Topics IRM 21.5.4, General Error Procedures
    IRM 5.19, Liability Collection IRM 21.5.5, Unpostables
    IRM 5.19.1.2 Balance Due Overview IRM 21.5.6, Freeze Codes
    IRM 20.1, Penalty Handbook IRM 21.6, Individual Tax Returns
    IRM 20.2, Interest IRM 21.7, Business Tax Returns and Non Master File Accounts
    IRM 21.1.2, Reference Materials Overview IRM 21.8.1, IMF International Adjustments
    IRM 21.1.3, Operational Guidelines Overview IRM 21.8.2, BMF International Adjustments
    IRM 21.1.3.20, Oral Statement Authority IRM 25.6, Statute of Limitations
    IRM 21.5.2, Adjustment Guidelines  

     

General Adjustments - Procedures

  1. The following sections in this IRM describe the procedures for processing general adjustments through correspondence or by telephone.

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail due to potential § 6103 issues. Fax procedures contained in IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX)Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer and IRM 10.5.1, Privacy Policy (Faxing section).

  2. If working a Form 1040X with Form 14039 attached, refer to IRM 25.23.4.5, Preliminary Research - Preparing the Case for Resolution.

  3. If you discover an unprocessed remittance, refer to IRM 3.8.46.1, Discovered Remittances.

  4. You need to request a manual lien release when the lien will not systemically release, the action you are taking will not post in 30 days, or it has been more than 30 days since the account was fully paid. See IRM 5.12.3.3, Lien Release Conditions, regarding manual lien releases.

  5. Employees with access to the Automated Lien System (ALS) should input the lien release in these situations. Those employees without access to ALS need to submit Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, to the lien release contact in the Centralized Lien Unit. The contact numbers can be located on the Who/Where page of the Servicewide Electronic Research Program (SERP) under Centralized Lien Processing.

Sorting Mail Responses

  1. The Mail Sort function must have the basic knowledge of servicing campus operations. They classify and sort adjustment work for Accounts Management and other functions.

  2. The Mail Sort function:

    1. Maintains received date integrity

    2. May identify suspicious packages and letters during the mail sort process. (For additional information, see IRM 21.1.3.10.8, Suspicious Packages and Letters)

Clerical Review

  1. The Clerical Support function provides non-technical support to the Accounts Management (AM) function. The type of support is determined by local management and includes the following:

    1. Control batched cases on the Integrated Data Retrieval System (IDRS) control system.

      Note:

      Cases not closed within 14 calendar days counting the IRS received date must be controlled on IDRS, except amended returns.

    2. Input a "STAUP" or Transaction Code (TC) 470 with no closing code on balance due cases. If inputting multiple STAUPS, input the first TIN on the second line of the command code. For additional information on command code STAUP, refer to the IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

      Note:

      TC 470 should only be used when a claim is pending or "STAUP" cannot be input.

    3. Strip and dispose of classified waste from closed cases.

    4. Update and maintain suspense files. Research each Social Security Number (SSN) or Employer Identification Number (EIN) for each year referenced and route to the appropriate functions if necessary. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, to determine appropriate referrals.

    5. Perform all research using the Integrated Data Retrieval System (IDRS).

  2. Form 3210, Document Transmittal, is a general purpose transmittal form used by all IRS functions. When Accounts Management (AM) prepares a Form 3210, AM will monitor the form to ensure an acknowledgement is received. If no reply is received within 20 business days, follow-up with the receiving office and notate or attach the follow-up information to the suspense copy of the Form 3210. The follow-up must occur within 10 business days after the expiration of the initial 20-day suspense period. The acknowledgement copy of the Form 3210 must be documented with the date received. For information related to preparing the form, refer to IRM 3.13.62.8.1, Form 3210 Document Transmittal.

Screening and Inventory Control
  1. The following are available for case control:

    • The IDRS Multiple Case Control Report

    • Inventory and Recap code generation

    • Other case categories (not generated by Master File)

    • Case reject criteria

     

  2. Controlling inventory includes determining:

    • Case classification

    • Received date

    • IDRS control

    • Status control

Integrated Data Retrieval System (IDRS) - Control Procedures
  1. Control each case on IDRS if the case cannot be closed by the later of 14 calendar days of IRS received date or 3 business days (including the day of receipt) from your function's controlling area, and it meets Policy Statement 21-3 criteria. Amended Returns are not subject to Policy Statement 21-3 criteria. See IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442, for controlling and aging criteria on Form 4442, Inquiry Referral.

  2. To control cases on a specific account using Command Code (CC) ACTON or CC DOALL, you must determine the:

    • Status Code – for example, "A" , "C" , "M" . Refer to the Case History Status Codes in Section 14 of Document 6209, IRS Processing Codes and Information.

    • Control Category Codes – for example, "TPRQ" , "TPPI" . Refer to Category Codes in Section 14 of Document 6209.

    • Unit or Customer Service Representative (CSR) or Tax Examiner (TE) employee number

     

  3. Either input CC STAUP or CC DOALL or TC 470 with no closing code to delay the next notice for 15 cycles on cases with a balance due. You must also determine the Internal Revenue Service (IRS) received date. Refer to the IDRS Command Code Job Aid and IRM 2.4.34, Command Code DOALL, for information regarding input of the command codes.

    Note:

    TC 470 should only be used when a claim is pending or the CC STAUP cannot be input.

     

  4. Enter the correct IRS received date when controlling the case. For aging purposes, the IRS received date is day one, per IRM 3.30.123.5.2, Response to Correspondence and Overage Criteria. If an IRS received date is not stamped on the document, refer to IRM 21.5.1.4.2.4, Received Date - Determination.

  5. If all case actions have been completed and you are monitoring the account to ensure proper posting, close the case and establish a monitor base on IDRS using category code "MISC" with the current date as a received date.

    Note:

    When establishing this monitor control base, using an asterisk (*) will generate the current date when used with command code ACTON.

Clerical Function for the Image Control Team (ICT) Correspondence Imaging System (CIS)
  1. The ICT is responsible for the clerical functions within CIS. To meet processing time frames, all cases must be prepped, scanned and validated within 5 calendar days of ICT receipt or 14 calendar days of the IRS received date.

    Note:

    For complete ICT information, including specific "how to" instructions with illustrations, refer to the IRM 3.13.6, Submission Processing Image Control (ICT) Correspondence Scanning.

    Note:

    Beginning July 2011, ICT began receiving notices containing a 2-D bar code to replace Social Security Number (SSN) on notices. Some of these notices have the SSN redacted/masked (e.g., xxx-xx-1234) and others will continue to have the complete SSN. For complete ICT information, including specific "how to" instructions with illustrations, refer to IRM 3.13.6, Submission Processing Image Control Team (ICT) Correspondence scanning.

  2. Screening of Accounts Management Correspondence – When received in ICT, all AM correspondence will be sent to the AM Screener.

Received Date - Determination
  1. Determine whether your case is a Taxpayer Initiated Inquiry (TPI) or non-TPI. When you are unable to determine whether your case is a TPI case or other type of case, treat the case as a TPI.

  2. Taxpayers occasionally submit documents that include a copy of a previously stamped IRS received date. The correct received date in this instance is the stamped/handwritten received date for the current submission. If unable to determine if the received date is a copy, use the oldest IRS received date. See (4) below if there is no IRS received date from the current submission of the document.

    Example:

    Taxpayer submits a copy of a U.S. Postal Service Certified Mail Receipt with an IRS received date stamped on the receipt. The received date, in this instance, is the received date of the taxpayer's correspondence and not the previously stamped date on the certified mail receipt.

  3. Early-filed tax return. A tax return that is filed before the due date (determined without regard to any extension of time for filing) is consider filed on the due date.

  4. When there is no IRS received date or handwritten received date on the document, determine the received date using the following priority list:

    1. Latest postmark or private delivery service date on the envelope.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

      Note:

      SCAMPS sprays a digital date on the envelope.

    3. Date the document/correspondence was prepared or signed.

      Exception:

      If the only available date is from a copy of a previously filed return, do not use the copied signature's date. Continue to (d) or (e) below.

    4. Julian Date of the Document Locator Number (DLN) minus ten (10) days.

      Note:

      The Julian Date is the 6-8 digits of a DLN. For example, in the DLN 28210-105-60025-4, the Julian Date is 105. Refer to DLN Composition in Document 6209, IRS Processing Codes and Information, for additional information.

    5. Today’s date minus 10 days.

    Note:

    For information concerning the Statute Reprocessable Return, see IRM 21.5.2.4.23.4, Statute Imminent Documents.

     

  5. On computer-generated cases, use the transcript or notice date minus fourteen (14) days to determine the IRS received date for inventory control purposes. If no computer generated date is present, use the IRS received date on the source document. The received date of the duplicate return should be determined by using the TRNS36/TRNS193 date on IDRS or CIS, minus 14 days.

    Note:

    The actual received date should be used for adjusting an account based on a TC 976 return or processing/reprocessing a TC 976 return. The actual received date of a TC 976 return received after the return due date (RDD) is the TC 976 date. If the TC 976 date is the RDD, determine the actual received date per (2) and (4) above.

     

    Exception:

    A CP 98/198, Push Code Condition, resulting from a TPI should be controlled using the IRS received date of the source document.

  6. When fax receipts are timely dated and time stamped by the fax machine, no further action is required to evidence receipt. Otherwise, fax receipts received before 2:00 p.m. local time, are considered received on the current date. Documents received after 2:00 p.m., local time, are considered received the next business day.

    Note:

    The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them and edit the Received Date according to instructions.

Received Date - Grace Periods
  1. Consider timely any return received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Returns received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ after the RDD carry the IRS received date (IRS Date Stamp) as the return posting date. When the latest postmark date or private delivery service mark is on or before the RDD, the RDD is the return posting date.

  3. To determine the effective date of payments received on balance due accounts, in Master File Status 19 or 21 or servicing campus Status 19, 20, 21, 56, or 58, the following applies:

    If And the payment is received Then the effective date of the payment is the
    the balance due is less than $100,000 within ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.
    the balance due is equal to or greater than $100,000 within 10 business days plus calendar days of the 23C date of the notice 23C date of the notice. Refer to
    IRC § 6601(e)(3).
    the payment was made prior to January 1, 1997 within 10 calendar days plus ≡ ≡ ≡ calendar days of the 23C date of the notice 23C date of the notice.

     

  4. When TC 610 or TC 670 payments post to a BMF account, which generally require Federal Tax Deposits (FTD), refer to IRM 20.1.4.7.2, Deposit Due Dates, and IRM 20.1.4.6,De Minimis Exception to Deposit Requirements, for information regarding amounts allowed to be paid with specific tax returns and for information regarding payments made through the Electronic Federal Tax Payment System (EFTPS) and the FTD system (TC 650).
     

Adjustments Case Management by Customer Service Representative (CSR)
  1. Adjustment inventory assigned to the Customer Service Representatives (CSRs) must be worked in first-in, first-out order/quick closures procedures.

  2. The Automated Age Listing (AAL) and the Multiple Control Listing (MCL) reports should be properly monitored and maintained weekly to ensure inventory management accountability. The Manager/Lead will provide employees with the report weekly on Monday or Tuesday with annotations for follow-up.

  3. Employees must return the listing to their Manager/Lead by close of business Thursday with follow-up actions documented at the bottom of the page on the actions taken on each case addressed, annotation should include C - Closed; U - Update; or S - STAUP input. The employee must work their listing in the following priority order:

    • NLUN category cases

    • The statute on assessment will expire within 90 days

    • Taxpayer was contacted and purge date has passed

    • Remaining cases by case type in oldest date received order

    Refer to Case Management Guidelines job aid for additional information.

Assigned Case Listing (ACL) or Case Control Activity Report (CCA) 02/42
  1. Case Control Activity (CCA) 02/42 report contains the following information on IMF and BMF accounts:

    • Control Category

    • File Name

    • Case Control Number

    • Taxpayer Identification Number (TIN)

    • MFT

    • Tax Period

    • Name Control

    • IRS Received Date

    • Plan Number

    • Follow Up Code

    • Employee Number

    • Error Code

  2. Review the list, identify any systemic problems, and take the necessary corrective actions or, if unable to correct, refer the systemic problems to the local IDRS Staff.

  3. Control cases using this list to individual employee numbers using Command Code (CC) CCASG, refer to IRM 2.4.2.42.7, Command Code CCASG.

Inventory and Recap Codes
  1. Forward restricted cases to the appropriate assignee. When transferring cases to another technical function, each case should have its own transmittal document and be routed using expedited routing procedures.

    Reminder:

    When case is properly assigned, whether additional documents are required or not, enter the case control as "ASSIGNED" via command code (CC) ACTON. Request additional research via CC ESTAB.

Analyze the Case
  1. Determine the needs of taxpayer(s) and what they are requesting, such as:

    • A copy of a return

    • A reply to one of our inquiries

    • Proof of a timely filed document by using an attachment to the inquiry

    • An adjustment to their original return supported by a loose schedule included in the inquiry, or

    • Other request

     

  2. When you cannot determine the taxpayer’s request from the information or documentation supplied, contact the taxpayer by telephone when a number is available or correspond with the taxpayer and request additional information, along with all necessary documentation, if known.

    1. Use the appropriate letter (Letter 64C, Letter 1382C, Letter 3064C etc.) if a penalty is the only issue addressed in the inquiry.

    2. In your correspondence, advise the taxpayer to include copies of all original correspondence along with the additional information requested.

     

  3. For preparation of work folders for completed cases, see IRM 21.5.2.4.24, Shipment of Source Documents.

Late Replies
  1. Forward late replies from taxpayers or their representatives to the originating function, see IRM 21.3.3, Incoming and Outgoing Correspondence/Letters. Forward these replies to Accounts Management (AM) when local management determines the originating function does not possess the necessary skills to resolve the case.

  2. Late replies may affect tax or penalty assessments.

  3. Complete the following when late replies are received:

    1. Control cases using the date the reply was received in the servicing campus.

    2. Use the applicable Corporate Files On Line (CFOL) commands instead of requesting documents when necessary to recompute tax or verify credits, such as command code (CC) IMFOLT for interest computation. See IRM 21.2.1.11, Corporate Files on Line (CFOL).

    3. Input Transaction Code (TC) 930, with the reply as the source document, if the return is not posted. For additional information, see IRM 21.5.1.4.4.2, TC 930 Push Codes.

    4. Determine if the original return (when it posts) is necessary to resolve your case. Use CC RTVUE and CC TRDBV before requesting original return.

    5. Input a TC 29X or credit adjustment when needed.

    6. Review for any possible adjustments to penalties and make appropriate adjustment. See IRM 20.1, Penalty Handbook, when working late replies concerning Form 1065, U.S. Return of Partnership Income.

    7. Notify the taxpayer of any actions performed on the account.

    8. IMF – Correct the Return Processible Date (RPD) if the module has an "I-" freeze and Computer Condition Code (CCC) "U" . Update the RPD with the received date of the missing information.

      Note:

      When the refund was previously issued, changing the RPD releases the freeze, but does not change the interest computation. Refer to IRM 20.2.4.5.1, Updating the RPD on Unprocessable Returns, for additional instructions.


      BMF – Correct the Correspondence Received Date (CRD) if the CRD field on the account is posted as a zero field (generated by CCC 3). Update the CRD with the received date of the missing information.

    9. Update the Assessment Statute Expiration Date (ASED) if the late reply is the missing signature from the original return and it is received after the due date of the original return. The ASED is updated with TC 560 via Command Code REQ77 and Command Code FRM77. Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, for additional information.

      Note:

      When inputting the TC 560, use the received date of the signature as the TRANS-DT on the FRM77 screen and three (3) years from the received date for the EXTENSION-DT of the FRM77 screen.

    10. See IRM 21.5.1.4.3.1.1, Missing Returns, for information regarding receipt of the request for missing information but no posted return.

      Note:

      If NIE is notated on the late reply, this abbreviation stands for the case is no longer in Error Resolution Systems (ERS) "Not in ERS" .

Incomplete Inquiry

  1. Reject cases with any of the situations shown below and request the necessary documentation.

    1. Missing payment – When the payment is not found and proof of payment is not submitted.

    2. Restricted Interest Claims (RINTS) and Tentative Carryback Applications (TENTS) – When information is required by the instructions, but is not submitted. See IRM 21.5.9, Carrybacks.

    3. Unnumbered, incomplete (unprocessable) IMF claims or amended returns, requesting tax decreases - See IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing.

     

    Exception:

    When corresponding for missing information and the Refund Statute Expiration Date (RSED) may expire during the taxpayer's allowable response time, refer to IRM 25.6.1.10, Claims, Abatements and Refunds, and IRM 21.5.3.4.3, Tax Decrease and Statute Consideration.

Missing Documents and Case Files
  1. The following sub-subsections detail the appropriate actions to take to secure a tax return to complete an adjustment, assuming "RTVUE" and/or "BRTVU" are unavailable or incomplete.

Missing Returns
  1. If no TC 150 has posted:

    1. Research to see if the original return posted elsewhere, such as a different TIN or tax period.

    2. Contact the taxpayer by telephone or correspondence to determine where, when, and how the return was filed. Request a signed copy of the return, if necessary. Allow the taxpayer 40 days to reply (70 days if taxpayer is overseas). If no reply from the taxpayer, take the following action:

     

    If Then
    The adjustment results in a credit to the taxpayer Treat as an original return but only allow substantiated credits to the extent of the tax liability.
    The adjustment results in a debit to the taxpayer or no tax liability Process the copy as an original return

     

  2. If TC 150 has posted:

    1. Use servicing campus local procedures for files special search.

    2. Determine if sufficient information is available to close the case. When sufficient information is not available, contact the taxpayer for a signed copy of the return before closing the case. Allow the taxpayer 40 days to reply (70 days if taxpayer is overseas).

    3. Attach a history of actions taken along with all other supporting information to the case file.

    4. If no reply is received from the taxpayer, make the adjustment when the net impact to the taxpayer is a debit; otherwise close your case "No Reply."

     

  3. If the adjustment relates to a NMF return and all research sources have been exhausted:

    1. Prepare Form 2275, Records Request, Charge and Recharge, indicating the original DLN in block 5.

    2. Attach Form 8485, Assessment Adjustment Case Record.

    3. Attach the case file and all supporting information to Form 8485.

     

Missing Case File
  1. If a case file cannot be found, review Integrated Data Retrieval Systems (IDRS) using command code (CC) TXMOD and CC ENMOD. If a satisfying transaction or letter is pending or posted on the module, close the control base.

  2. If no satisfying action is present, and the module is a dummy module, and there has been a control base for more than three weeks, the module should contain a TC 904. Follow the steps in the chart below.

    If And Then
    The "Pending Transaction Identification Code" of TC 904 is "ERS"   Close the control base as an error case, activity code "ERRORCASE " .
    No TC 904 on the module CC INOLES has been researched with no response Close the control base as an error case, activity code "ERRORCASE " .
    Positions 37 through 40 of the TC 904 line contain the district office Year the tax module was removed to the Retention Register Ask your supervisor to check with Accounting function to see if the module is being reestablished on the Accounts Register. See note below:

     

    Note:

    If Accounting is reestablishing the module, they may be able to provide the information to help solve your case.

     

  3. Perform the following research to locate your missing case.

    If Then
    IDRS indicates multiple bases controlled to you Verify the missing case is not attached to your other cases.
    There is a TC 420 on the module Contact audit to see if your case is associated with the examination case. Refer to IRM 4.19, Liability Determination, for special project code procedures, or refer to Exhibit 21.5.10-1, AIMS STATUS CODE GUIDE - FIELD CASES.
    The adjustment is not posted to another module on IDRS Check all modules for an adjustment using CC IMFOL or CC BMFOL.
    You secured the return Check to see if your case is attached.
    You can contact the taxpayer via telephone or correspondence Request a copy of their inquiry, if needed (forms, schedules, etc.).
    Case cannot be located Document all research performed (using Form 5706, Case History Sheet).
    See note below this table.
    Account is showing a credit balance. Input a TC 290 for amount of the credit.

    Note:

    If adjusting employment tax returns, also refer to IRM 21.7.2.4.6.3.2, Withholding Tax Adjustment When Unable to Determine Proper Tax Correction.

    Account is showing a debit or zero balance Input a TC 290 for zero to release all freezes.

     

    Note:

    When the case cannot be located, the supervisor must sign the history sheet before the case can be closed.

     

Processing of Loose Forms or Schedules

  1. Whenever a form or schedule without a return is received in Accounts Management and the original return has not posted, refer to the following table:

    If And Then
    You can determine that no adjustment will be necessary,

    Example:

    Section 83(b) elections

      Input a TC 930 push code, if appropriate, to file the information. Refer to IRM 21.5.1.4.4.2, TC 930 Push Codes, and IRM 21.5.1.4.4.3Inappropriate Use of TC 930 Push Code.

    Note:

    Push code procedures are not needed if the document was scanned into CIS. See IRM 21.5.1.5.7CIS Push Codes, for additional information.

    You are unable to determine whether an adjustment will be necessary or if you can determine that an adjustment will be needed, There is an indication the return has been filed or will be filed. Refer to IRM 21.4.1.4.1, Locating the Taxpayer's Return, for additional information.

    Note:

    Consider any form received prior to the return due date as an indication the taxpayer will file.

    Input a TC 930 push code using your employee number as indicated in IRM 21.5.1.4.4.2, TC 930 Push Codes.

    Reminder:

    In certain instances, TC 930 push code procedures should not be used. Refer to IRM 21.5.1.4.4.3, Inappropriate Use of TC 930 Push Code.

    An adjustment will or will not be needed, There is no indication the return has been filed and it is beyond the return due date Return the loose form or schedule to the taxpayer. Advise the taxpayer to include the form/schedule on the original return when it is submitted.

    Note:

    CIS images do not have to be returned.


     

  2. Whenever a form or schedule without a return is received in Accounts Management and the original return has posted, refer to the following table:

    If Then
    You can determine that no adjustment will be necessary,

    Example:

    Section 83(b) elections, previous action, etc.

    Locate the DLN and associate the loose form/schedule with the original return using local procedures. If the original return was filed electronically, refer to IRM 21.6.6.4.26, Electronic Filing System (e-file).

    Note:

    CIS images do not have to be associated with the original return. Add a case note to identify the loose form or schedule.

    You are unable to determine whether an adjustment is needed,
    1. Return the loose form/schedule to the taxpayer.

      Note:

      CIS images do not have to be returned.

    2. Advise the taxpayer that a Form 1040X is required to amend the original return.

    You are able to determine an adjustment is needed and have the documentation to do the adjustment. Input the adjustment using appropriate reason and reference numbers. Refer toDocument 6209 Section 8C , Source Codes, Reason Codes, Hold Codes & Priority Codes.
  3. The following forms have specific procedures:

    If And Then
    Form 5405, Repayment of the First-Time Homebuyer Credit is received
    1. Original return has posted

    2. Original return has not posted

    1. See IRM 21.6.4.4.18.4, Manually Adjusting the Recapture Amount

    2. Follow push code procedures – See IRM 21.5.1.4.4.2 , TC 930 Push Codes

    Form 8609, Low-Income Housing Credit Allocation Certification, is received and Part II is not signed,   Route to the Philadelphia campus at the following address: Department of the Treasury Internal Revenue Service Center Philadelphia, PA 19255-0549
    Form 8609 is received and Part II is signed,   Associate the Form 8609 with the related tax return of the building owner.
    Form 8938, Statement of Specified Foreign Financial Assets   Input of TC 971 AC 698 required if Form received in Accounts Management and not input previously by Submission Processing (loose, received with correspondence or attached to Form 1040X).

    Note:

    TC 971 AC 698 is not allowed on tax year 2010; it can only be input to 2011 and later.

    Form 8965, Reporting of Exemptions from Shared Responsibility Payment
    1. Original return has posted

    2. Original return has not posted

    1. See IRM 21.6.4.4.21.2, Form 8965, Health Coverage Exemptions

    2. Follow push code procedures – See IRM 21.5.1.4.4.2 , TC 930 Push Codes

    Caution:

    Extreme care must be taken when returning taxpayer information to ensure that only the material relative to the taxpayer(s) to whom the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.25,Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

Unresolved Taxpayer Protection Program (TPP) Issues for Correspondence and Loose Forms
  1. If correspondence or a loose form is received and no original return (TC 150) has posted to the MFT 30 tax module, research CC TXMOD for TPP indicators, (i.e., TC 971 with any of the following AC 121, AC 124, AC 125 or AC 129), on the account. If there are no indicators, follow the normal procedures in IRM 21.5.1.4.4Processing of Loose Form or Schedules.

    Caution:

    If the return has been moved to MFT 32, research CC TRDBV on the “CODES” screen for the UP 126 indicator to ensure the return was moved to MFT 32 by the TPP process before following the guidance below. If the return was moved to the MFT 32 due to Submission Processing (SP) editing a SPC T or in the UP 147 process, see IRM 21.5.6.4.9, E- Freeze, for guidance.

  2. If TPP indicators are present on CC TXMOD, the taxpayer should have received one of the following IDRS letters to authenticate their identity:

    • Letter 4883C – Potential Identity Theft during Original Processing

    • Letter 5071C -Potential Identity Theft during Original Processing with Online Option

    • Letter 5747C – Potential Identity Theft during Original Processing; TAC AUTH ONLY

    • Letter 5447C – Potential Identity Theft during Original Processing - Foreign Address

    The above letters will not show on CC ENMOD.

    Note:

    Refer to IRM 25.25.6.1.7(3), Taxpayer Protection Program Overview, for additional information on the letters and TC 971 action codes.

  3. The taxpayer’s identity must be authenticated before any action can be taken on the MFT 30 account. If research on AMS indicates TP had already authenticated but for whatever reasons actions were not taken, refer a Form 4442 to TPP using RICS IVO - TPP, to complete the necessary actions on the account. If no indication on AMS then take the following actions if a loose form or correspondence is received:

    • Prepare the IDRS Letter 309C – Forms/Publications/Schedules to Taxpayer - and make a copy of the loose form/correspondence from CIS and return to the taxpayer. Be sure to cross out all IRS received dates on the case

      Note:

      The 309C letter should be sent to the address on the 1040X.

    • Extreme care must be taken when returning taxpayer information to ensure that only the material relative to the taxpayer(s) to whom the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.25, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information. Use the following information in the open paragraph:

    "We are returning the Form XXXX or correspondence because you didn’t respond to the authentication letter previously sent. The authentication letter is being reissued; please follow the instructions to verify your identity. Once verified, your original return will be processed and you can re-send your information" .

    • For Spanish letters, please use the following: “Le estamos devolviendo el Formulario XXXX o la correspondencia que nos envió, porque no ha respondido a la carta que le enviamos anteriormente para verificar su identidad. Le hemos enviado nuevamente la carta de verificación de identidad; por favor siga las instrucciones en la carta. Una vez que hayamos verificado su identidad, su declaración de impuesto federal será procesada y usted podráó enviar de nuevo su información.”

    Note:

    In place of the XXXX in the paragraph above, input the form number you are returning.

  4. Re-issue the appropriate authentication letter to the taxpayer.

    Note:

    The TPP letter should be sent to the address on the original return. If the original return was filed electronically, check TRDBV for the address that was used on the original return. TRDBV will not show an address if the original was filed on paper.

    • Letter 4883C, refer to Exhibit 25.25.6-2,Manually issuing the Letter 4883C/SP, Potential Identity Theft during Original Processing

    • Letter 5447C, Exhibit 25.25.6-3, Manually issuing the Letter 5447C/SP, Potential Identity Theft during Original Processing; Foreign Address or

    • Letter 5747C, Exhibit 25.25.6-4, Manually issuing the Letter 5747C/SP, Potential Identity Theft during Original Processing - TAC AUTH ONLY.

  5. Input a detailed history item on AMS. Indicate Letter 309C was sent to the taxpayer with a copy of the correspondence/form and which authentication letter was reissued.

  6. Close the case using the current category code.

TC 930 Push Codes
  1. Forms, schedules, or taxpayer inquiries received before a return posts can be filed using the TC 930 - Push Code. This will suspend requisitions for subsequent returns. Refer to IRM 21.5.1.4.4.3, Inappropriate Use of TC 930 Push Code, for additional push code information and see IRM 21.5.1.5.7, CIS Push Codes, for information on push codes with the Correspondence Imaging System (CIS).

  2. Input a TC 930 Push Code using command code REQ77 and complete the following:

    1. Input your employee number starting with the third digit, in the TC 93X-EMP-CD field if you want the schedule and original return forwarded back to you.

    2. Input the employee number for Files (see table below), starting with the third digit, in the TC 93X-EMP-CD field if you want the schedule attached to the original return, but not returned to you.

      Campus Employee number for Files
      Andover 50100000
      Atlanta 65000000
      Austin 13500000
      Brookhaven 49300000
      Cincinnati 13100000
      Fresno 13600000
      Kansas City 13100000
      Memphis 13600000
      Ogden 53000000
      Philadelphia N/A
    3. Input your unit number and all zeros, in the TC 93X-EMP-CD field if you want the schedule returned to you, but you do not need the original return.

    4. Refer to IRM 2.4.19, Command Codes (CC) REQ77, (CC) FRM77 and (CC) FRM7A, for additional information on inputting push codes.

    Note:

    If the return for which you are using the push code is an electronically filed or magnetic tape filed return, the CP 98 or CP 198, Push Code Condition, is associated with the TC 930 suspense document and returned to the originator.

     

  3. If the return does not post within 36 cycles after the return due date for IMF or 50 cycles after the end of the tax period for BMF, a CP 98/198 generates. Research the DLN (another TIN, EIN, tax period, etc.). It may be necessary to contact the taxpayer for additional information.

    Note:

    The TC 930 Push Code will not release a payment (TC 670) if present on the module.

     

Inappropriate Use of TC 930 Push Code
  1. Do not use the TC 930 Push Code (PC) in the following instances:

    • If the TC 150 is posted or pending to post (e.g., PN 150, CU 150)

    • For prior year returns

    • For more than one year in advance of the return

    • If a TC 59X is posted

    • If the return is in the Error Resolution System (ERS)

    • If the return is in unpostables

    • After the return due date has passed, unless research indicates the return has been received and should post soon

    • If the document is scanned into the Correspondence Imaging System (CIS) and will not result in an adjustment to the account, such as a Section 83(b) election

      Note:

      Refer to IRM 21.3.3.4.13, Miscellaneous Elections and Forms, for additional information regarding Section 83(b) and IRM 21.5.1.5.7, CIS Push Codes, for information on push codes specific to CIS.

     

  2. If the schedule relates to a prior year return or for a return already posted, research for the DLN. Upon locating the DLN, associate the loose schedule with the original return using local procedures.

  3. Do not input a TC 930 more than 1 year in advance of the return due date as it will not post to the account.

Suspense Folders

  1. Prepare suspense folders for cases that require additional information from the taxpayer or another document from Files. Hold the cases in a centralized suspense file. For instructions on payment tracer cases, refer to IRM 21.5.7, Payment Tracers.

    1. Work the case when information is received.

    2. Allow 14 calendar days for receipt of tax returns from Files. Allow 30 calendar days for receipt of out of region tax returns from Files.

    3. Purge the suspense case if information requested from the taxpayer is not received within 40 days.

      Exception:

      Overseas taxpayers have a 70-day purge time.

    4. If no reply, close the case according to available information and send the appropriate closing letter.

    5. Suspended case files should have a history sheet or record attached to reflect all action taken and the date.

      Note:

      A history sheet is not required when the only action taken prior to closing the case is the initial request for "IMFOL" display information.

       

    6. Include a notation that an apology was issued for service errors and include the date of the apology. See IRM 21.3.3.4.17.1, Preparing Outgoing Manually Generated Correspondence, and IRM 21.3.3.4.23, Review of Outgoing Correspondence.

     

Retaining Case Control After Adjustment Action
  1. Some adjustment transactions require case control after input, such as when:

    1. an additional assessment has been made on a non-computed form because of a processing error, or

    2. a case requires an adjustment to identify examination criteria

     

  2. To maintain controls on these adjustments, take the following actions:

    1. Input the first adjustment transaction with a re-file DLN

    2. Enter "R" in the SOURCE-DOCUMENT-ATTACHED field

    3. Write the DLN of the original return in the remarks field

    4. Retain case control

    5. Upon receipt of the document from Files, associate it with the original case

    6. Complete any further action required

     

Returns Filed as Attachments to Other Returns/Correspondence

  1. When a return not belonging to your case file is discovered:

    1. Detach the return

    2. Research to determine if the return should be processed, re-filed, or worked as a separate case, etc.

     

  2. To process the return:

    1. Prepare Form 1725, Routing Slip

    2. Edit the IRS received date in red if IMF or green if BMF

    3. Send to Numbering or to the appropriate area

     

Taxpayer Inquiry Referred From Other Functions

  1. Taxpayer Inquiry (TPI) cases referred to your function should be controlled using the IRS received date.

  2. Non-TPI cases should be controlled, reflecting the date the case was received in your function.

  3. The computer automatically opens a control base on IDRS when a case was closed by Unpostables with Unpostable Resolution Code (URC) 2. The IRS received dates for these cases are the correspondence dates (CORRESP-DT), or the GUF-15 closing run date.

  4. Control on IDRS all cases referred to your function by other areas, including the local campus mail function, by the later of 14 calendar days from the IRS received date or three business days (including the day of receipt) from your function’s received date.

    Exception:

    Cases that will be closed within 14 calendar days from the IRS received date, counting the day they are received, are not required to be controlled.

     

Transaction Code 971

  1. Transaction Code (TC) 971 is an identifier used to cross reference other TINs and tax periods or to identify other information about an account, including the location of a taxpayer’s claim. The Action Code (AC) associated with the TC 971 provides details as to the action on a tax module or a case. Refer to Section 8 under TC 971 Action Codes in the Document 6209, IRS Processing Codes and Information, for a complete listing of the different action codes.

  2. TC 971 AC 698 is required on Form 8938, Statement of Foreign Financial Assets. The Form may be received loose, with correspondence or with an amended return.

  3. When inputting a TC 971, different transaction dates are required depending on the action being taken. Some common examples are:

    1. If a TC 976 or 977 document is being reprocessed to another TIN or tax period (AC 002), the transaction date for the TC 971 is the posted date of the TC 976 or 977.

    2. If the TC 150 document is being reprocessed to another TIN or tax period (AC 001), the transaction date for the TC 971 is the date shown in the RET-RECD-DT field on TXMOD.

    3. AC 010 indicates an amended return/claim has been forwarded to Accounts Management. The transaction date for the TC 971 is the receive date of the TC 977.

    4. Action codes 012-016 indicate the amended return/claim has been forwarded to another area for processing. The transaction date for the TC 971 is the posted date of the TC 976/977.

    5. If the claim is being returned to the taxpayer (AC 270), the transaction date for the TC 971 is the current date.

    6. If AC 017 is being used to identify a return being reprocessed from another module, the transaction date is the received date of the return being reprocessed.

      Note:

      TC 971 AC 086 or AC 087 indicate non-assessment of interest and penalty due to a Presidentially Declared Disaster and are input automatically.

  4. Input TC 971 on IDRS using command code REQ77. Refer to IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, for further information.

Recharging and Re-filing Documents

  1. Use the following procedures when it is determined the return should be recharged to another area. There are three ways to recharge a document.

    1. Input command code (CC) ESTABD with the definer (T). The employee is responsible for inputting this action.

      Note:

      A Form 4251, Return Charge-Out, will generate in Files notifying them of the change. If IDRS is unavailable for at least three days, notify Files on Form 4251, if available. Follow (c) below to complete Form 4251.

    2. Form 2275, Records Request, Charge and Recharge, complete Part A, Boxes 1 - 5, Part C. Check the (Recharge to) box and fill out the charge out information in Box E, and Box 18. Attach the return to the case and route both to the recharge activity and forward the original Form 2275.

      Note:

      The necessary charge out information is included in (c) below

    3. Complete the Form 4251 and specify where the return will be recharged (operation or function). Complete the charge out information, including the address of the area office, etc. Attach the return to the case and route both to the recharge activity and forward the original Form 4251 to Files.

     

  2. Whenever an original return is requested from Files for an adjustment and it is determined an adjustment is unnecessary, recharge the return back to Files.

Classified Waste

  1. Classified waste is documentation containing taxpayer entity or account information not needed for audit trail purposes.

  2. Classified waste does not include:

    1. Numbered returns.

    2. Unnumbered returns, amended returns, and claims requesting an adjustment to the taxpayer's account.

    3. Taxpayer inquiries or background information requesting a tax, penalty, or interest adjustment, regardless if allowed or disallowed, except when the inquiry concerns misapplied payment(s) that when found and applied correctly, eliminates the penalty and interest.

    4. Taxpayer inquiries or background information resulting in a hard-core payment tracer.

    5. Taxpayer inquiries or background information resulting in a credit transfer between non-related accounts or related accounts and the credit is not available.

    6. Any misrouted forms.

    7. Documentation required for audit trail purposes that does not require any IDRS input transaction. Attach this documentation to the original return.

     

  3. Classified waste includes:

    1. Copies of research not used for the case, such as MFTRA, TFTRA, MCC transcripts, microfilm, etc.

    2. Taxpayer letters and background information when a response has previously been issued, but did not result in a change to the taxpayer’s account, such as request for forms and publications.

    3. Taxpayer letters not asking for research, abatement, or information, but are general information letters, such as a letter from a taxpayer asking how to file their return.

    4. Taxpayer's letter accompanying payments, such as "attached is my payment of $$$ for 2007 taxes," etc.

    5. Extra or duplicate copies of taxpayer inquiries including copies of returns, schedules, or worksheets, if not needed as background information for adjustments.

    6. Taxpayer letters or background information resulting in an entity address change.

    7. Taxpayer inquiries requesting a transcript of accounts.

    8. Credit transfers within the same TIN and transfers completed between related accounts, where the credit is available.

    9. Copy of a notice included with the taxpayer's request.

     

  4. Marking and disposing of classified waste:

    1. Notate any actions taken (unless actions have been previously documented i.e., AMS history)

      Example:

      Address change per taxpayer correspondence (TPRQ) or Form 1040X or Form 8822

      Example:

      Taxpayer identified the payment submitted for a tax period or type of tax (i.e., Remittance Advice)

      Example:

      Previous action - correction already posted

       

    2. Place a large "X" across front of the document. If documents are stapled together, you need to place the large "X" on the first page only.

    3. Enter your Employee Identification Number

    4. Include the document with your closed cases, so the clerks may dispose of it in the "designated classified waste" trash can

    Exception:

    Account Management Service (AMS) or the Correspondence Imaging System (CIS) creates electronic images of a case. Cases scanned into these electronic systems do not require any markings, since the electronic image will remain available.

Signature Requirements

  1. Request for adjustments to tax and interest abatements must contain the signature of the taxpayer, other than those allowed with an oral statement or valid representative. Refer to the table in IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for acceptance of faxed signatures. IRM 21.1.3.20, Oral Statement Authority, provides details regarding the type of adjustments that do not require a taxpayer signature.

  2. Receipt of a schedule without a return or other substantiating information may result in an informal claim and require a signature, depending on the situation.

    1. Schedules submitted to support an entry on the taxpayer’s original signed return do not require a signature.

    2. Schedules submitted to claim a credit or deduction not claimed on the original return must include the signature.

    3. Not all address change requests require a signature. Refer to IRM 3.13.5.29, Oral Statement/Telephone Contact Address Change Requirements, for additional information.

    4. Photocopies of facsimile transmitted signatures on Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, are acceptable.

     

Tolerances

  1. Changes to prepaid credits:

    If Then
    written request is for additional withholding of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported with written documentation. Refer to IRM 21.6.3.4.2.2, Withholding (W/H) Tax Credit, for a listing of applicable documentation.
    written request is for additional withholding of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and all of the following criteria are met:
    1. The withholding credit was incorrectly reported, processed, or not reported at all, and
    2. the withholding relates to income already included on the original return, a previously processed amended return, or the amended return currently being processed, and
    3. there was no previous adjustment to the withholding tax credit on this module,
    allow the amount without written support.
    Fuel Tax Credit request is for an additional ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported by the Form 4136, Credit for Federal Tax Paid on Fuels.
    Regulated Investment Tax Credit is for an additional ≡ ≡ ≡ ≡ ≡ ≡ the request must be supported by the Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.

    Caution:

    Submission Processing and Accounts Management are receiving original and amended returns claiming fraudulent income and withholding based on frivolous Form(s) 1099-MISC. Most of the forms have been processed and appear on IRP data. The Form 1099-MISC are associated to major banks and lending institutions and the common way to identify false filings is inflated withholding credit. Some of the forms have withholding greater than ≡ or it matches the income exactly. They may also have state tax withheld, which the taxpayer is deducting on the Schedule A. They are not legitimate, regardless if the Forms 1099-MISC are posted to IRP and should not be used for verification of income. Refer to IRM 21.5.3.4.16.7(4), Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments, for additional information on referring the frivolous information to Ogden. Do not work the Form 1040X.

    Note:

    The Tax Withheld summary on Information Returns Transcript File On Line (IRPTR) may be used to allow withholding over the tolerance amounts if it appears the taxpayer reported all income.

     

  2. The applicable 94XX Form is required for tax decreases of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 21.7.2.4.6(9), Adjusted Employer's Federal Tax Return or Claim for Refund, for the tolerance on the new adjusted employment tax returns. These include Forms 941X, 943X, 944X, 945X, and Form CT-1X. The adjustment cannot be made via oral statement.

  3. Accept the taxpayer’s figures when a discrepancy in the total tax for each tax period including allowable Earned Income Tax Credit (EITC) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    Do not consider the tolerance amount if the required schedules/attachments are missing. Example: Taxpayer requests EITC and qualifying children are claimed without submitting the Schedule EIC). Advise the taxpayer they need to file a claim using the Form 843, Claim For Refund and Request for Abatement, or the Form 1040-X, Amended US Individual Income Tax Return, and attach the corrected forms or schedules.

     

  4. Line by line verification of IMF Amended or Supplemental "G" coded returns is not required with a tax adjustment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
     

  5. Math verify EITC and/or the Child Care Credit when:

    • Math Error is involved

    • Amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ for either credit, and

    • Math verification was bypassed in original processing.

     

  6. Correct Item Reference Numbers (IRN) when the tax is reduced to zero, and items are over ≡ ≡ ≡ ≡ ≡ dollars.
     

  7. If the deposit and credit amounts posted to a module differ from the return tax liability by ≡ ≡ ≡ ≡ ≡ ≡ ≡ , research to resolve any discrepancies.
     

  8. Allow BMF claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , excluding unallowable items or "CAT A" criteria.
     

  9. Do not forward a Math Error unsubstantiated protest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to Examination (excluding EITC Math Error cases).

Correspondence Imaging System (CIS) Procedures

  1. The Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management receipts (including Form 1040X, Amended U.S. Individual Income Tax Return) into digital images and working the cases from those images. CIS moves Adjustments from a paper to a paperless environment. This section provides specific guidance for handling CIS cases.

  2. Additional CIS information, including the CIS Performance Guide (Course Number 6902c-203 CSR Guide), can be found under the Local/Sites/Other tab on SERP, followed by the Correspondence Imaging System (CIS) tab. It provides additional explanations, information, and instructions.

CIS General Guidelines

  1. CIS cases are assigned by site to a generic employee number prior to being systemically reassigned and distributed to individual employees for resolution. The following numbers are used for each site:

    Campus Generic IDRS number
    Atlanta 0739900025
    Andover 0848900000
    Austin 0686100000
    Brookhaven 0138640000
    Cincinnati 0237500000
    Fresno 1042000000
    Kansas City 0938000000
    Memphis 0339300000
    Ogden 0439800000
    Philadelphia 0544300093
  2. CIS cases can be identified by the activity code present on the TXMOD control base. Each CIS case has a unique 10 character alpha numeric case identifier that begins with the letters CIS, (e.g., CIS1A2BCD1), and this identifier is displayed in the control base activity field. An alert also appears on the account summary screen on Account Management Service (AMS).

  3. To meet the correspondence 30 day time frame, CIS interim letters are generated on the 25th day in accordance with Policy Statement P-21-3. Refer to IRM 21.3.3.4.2, Policy Statement P-21-3 Procedures.

  4. Adjustments based on CIS cases can be recognized by the CIS indicator that posts as a part of the TC 29X transaction on TXMOD/IMFOL/BMFOL. On the ADJ54 screen, an entry of "1" is required in the CIS IND> field to indicate the adjustment is based on a CIS digital image. This field is systemically generated on adjustments initiated through CIS.

    Note:

    On BMF cases, the CIS indicator will not show on TXMOD if the adjustment is for a TC 290 .00 with no reference number changes. The indicator will remain on BMFOL.

    Example:

    A CIS adjustment posted to TXMOD will have a CIS indicator of 1 as shown below.
    290 02092004 0.00 200404 18254-407-05XXX-4 ADJ-RSN-CD>006-061-036- AMD-CLMS-DT>11202003 CIS-IND>1

     

  5. The CIS Case ID must be recorded on all CIS adjustments or IDRS inputs, such as credit transfers and entity changes unless a tool prohibits the input.

    Note:

    The case ID is in addition to your required IRM remarks for resolving the case.

  6. You must enter a unique sequence number in the ADJ54 screen for each adjustment input. The sequence numbers used should be input in increasing numerical order, (e.g., 1, 2, 3 etc.).

  7. When generating the 105C or 106C letter, save the PDF, attach it to the case with the Attach File button on the actual tax period involved instead of capturing the "request completed" screen.

  8. Capture the "request completed" screen for:

    • Command code (CC) LETER requests – If including an enclosure/attachment with the letter, capture the letter prior to transmitting it.

      Exception:

      Letters sent systemically through IAT tools (i.e., xClaim or batch tools) are not required to be captured, unless the tool's "Write Your Own" option is used (i.e., letter 4364C, letter 31C). When issuing the 4364C letter based on an adjustment that differs from the information submitted by the taxpayer, a complete corrected copy of the taxpayer's Form 1040X, Amended U.S. Individual Income Tax Return, is required to be sent to the taxpayer.

    • Credit transfers for non-related accounts

    • Credit transfers for related accounts resulting in a debit balance after the transfer

    • Payment date changes over $100

      Note:

      Additional information on credit transfers is in IRM 21.5.8.3.1, Determining Source Document Requirement for Credit Transfers.

    • CC PIFTD CC FTDPN print (additional liability pages/payment designations must be included if applicable) – See IRM 20.1.4.23, Manual Adjustments

    • Other items as identified in subject specific IRMs

  9. You should not close the IDRS control base of your CIS case when you execute an IDRS command. For example, when completing an ADJ54 screen, leave the CASE-STS-CD> field blank. Allow CIS to close the IDRS control base when you click the "close" button in CIS, after completing all actions.

  10. Do not attempt to take actions on CIS cases if IDRS is down. You may access and view cases, but you should not attempt actions that interact with IDRS.

  11. The CIS case message function can be used to leave detailed history regarding the case. A case message is not a permanent record.

  12. The CIS case note function is used when you want the information to become a permanent attachment to the case. The case note feature must be used when printing the image or a portion of the image for routing to another area.

    Example:

    Use a case note when there is no record of the action taken, such as "Phone call to TP – TP to fax missing schedule" .

    Example:

    A case note must be used to indicate a portion of the CIS case was forwarded to another area, such as "Form 9465 printed and routed to Collections" or "Form 2848 printed and forwarded to CAF" or "Original return printed and forwarded to SP for processing" .

    Note:

    Avoid leaving sensitive or identifying information in the case notes since case notes are permanent and automatically written to AMS history.

  13. Contact the Taxpayer Advocate when the case has an open Taxpayer Advocate control prior to taking any case actions.

  14. Operations Assistance Request (OAR) cases routed as CAT-A criteria must have "OARs" as the primary suspense reason on CIS. Use the additional suspense reasons for the type of case (e.g., EITC). Remarks can be used for further explanation.

  15. Cases routed as CAT-A are systemically recontrolled to Examination and placed in suspense until returned by the Examination Classifiers or by the current established expiration period (e.g., 180 days).

    Reminder:

    The taxpayer has a right to file suit for a refund pursuant to IRC Section 6532(a) when a claim for refund is not responded to within 6 months.

    Note:

    If an OAR case is received and the case is already recontrolled to Examination, the AM TAS Liaison must link the OAR case in Examination using OARs suspense reason.

  16. Occasionally, two (or more) unrelated cases are scanned as one CIS image. In these instances, utilize "SPLIT-IMAGE" from the Suspend drop-down list in CIS and complete the Split Image Suspense page to indicate where the image should be split and which part of the image should be associated with the existing case. Refer to the applicable CSR User Guide for additional information on splitting images.

  17. A new "Close As MISC" button has been added to the CIS case page allowing a user to close secondary case(s) by not counting them as a closure in CIS reporting when there are multiple open CIS cases on a TIN. "Close As MISC" button closes the CIS case and updates the category code to MISC (in IDRS only), while closing the IDRS control base. "Closed As MISC" cases will be counted as a transfer out action instead of a closed case which enables more accurate inventory and closure reporting.

    Example:

    "Close as MISC" when a scanned document request erroneously creates a new case in CIS instead of adding the image to an existing case.

    Example:

    "Close as MISC" cases that are reopened from archives or reassigned to the employee to correct a defect.

    A popup reminder will display when the "Close As MISC" button is clicked – ‘"Did you remember to input a case link if required?" "OK" to complete the operation and "Cancel" to cancel the operation and return to the Active case page.

  18. All employees must discontinue identifying any taxpayer's account as a "Tax Protestor" . Do not use the term "Illegal Tax Protestor" or similar designations on IDRS, ACS, AMS, or CIS. This includes any comments, narratives, and/or histories. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use.

  19. Do not reopen a case from CIS archives unless immediate action can be taken. Reopening cases from CIS archives may create an overage case. Instead of reopening an archived case, you may utilize the create case option in CIS to create a new case based on the taxpayer's contact and link the newly opened CIS case to the related archived case(s).

    Note:

    Examples of reasons to "link" cases instead of reopening:

    If Then
    Taxpayer (TP) sends additional correspondence after claim was adjusted Link new correspondence to original claim
    Claim closed to another area (e.g., Exam) Additional correspondence is needed Link new correspondence to original claim
    Transcript received on account Use receive date of transcript and link to original claim
    TP sends additional correspondence after amended return was adjusted Link new correspondence to original claim
    TP sends a corrected document or worksheet Link information received to original claim
    You receive a late TP reply for information from a previous CATA case that was subsequently closed Link new correspondence to original claim

Cases Currently Assigned in CIS

  1. It is extremely important that CIS case controls not be closed on IDRS by anyone other than the CSR assigned the case. Follow procedures in IRM 21.5.2.3(5), Adjustments Guidelines - Research, and IRM 21.1.3.20, Oral Statement Authority, when handling taxpayer inquiries.

  2. When working CIS cases and the incorrect category codes and/or program codes/CIS controls are used, they must be corrected on CIS when identified or prior to reassignment. Some common examples (not all inclusive):

    Example:

    CIS case coded as TPRQ, but XRET is attached. Update category to XRET and the program code to 40051.

    Example:

    CIS case coded as DUPF, XRET, or TPRQ but a Form 8379 is attached. Update category to DMFC with program code 97140 or DMFE (if the return is electronic) with program code 97144. See IRM 21.4.6.5.10, Allocation of Injured Spouse Form 8379, for additional instructions on processing Injured Spouse claims.

    Example:

    CIS case coded as DMFC, but the Form 8379 was submitted electronically with the original return. Update category to DMFE and the program code to 97144. See IRM 21.4.6.5.10, Allocation of Injured Spouse Form 8379, for additional instructions on Injured Spouse claims.

    Example:

    CIS case coded as DUPF, but identified as a mixed entity or scrambled SSN case. Update the category to MXEN or SCRM, along with the appropriate program code, as instructed in IRM 25.23.4.5, Preliminary Research - Preparing the Case for Resolution.

    Example:

    CIS case coded as XRET, but identified as HCTC criteria. Update the category to HCTX along with the appropriate program code and reassign case to 0830141335

  3. Occasionally, a CIS case will be scanned to an incorrect TIN or tax period.

    If the case is scanned to an incorrect TIN and generates an interim letter to the incorrect taxpayer, send a closing (apology) letter to the incorrect taxpayer before updating the case to the correct TIN for resolution.

    If the case is not an XRET and is controlled to a TIN of all zeroes, an incorrect TIN and/or tax period and correct information can be located, update CIS with the correct TIN and/or tax period. The IDRS base will be closed on the incorrect TIN/tax period and the CIS case can be worked on the correct account.

    If the case is scanned as an XRET, a TC 971 AC 010 is generated, which creates an -A freeze on the incorrect account. Follow the procedures below to correct the CIS account and IDRS control:

    • Input a TC 971 AC 002 on the incorrect account with the cross-reference information of the correct TIN/tax period.

    • Input a TC 290 .00 to release the -A freeze on the incorrect account.

    • Update the CIS information with the correct TIN/tax period.

    • Process the CIS case following normal procedures.

  4. The "Reroute" option in CIS prints a hardcopy of the case image and case notes, along with a form that includes the routing information. The routing option in CIS also allows the print out to be directed to different CIS printers throughout the CIS enabled sites. The print out is then forwarded to the area designated on the routing sheet.

    If an IDRS control is required by the receiving area, you must manually open a control in IDRS to the appropriate employee number.

    Your local printer is also available, if it is necessary to have access to the printed case prior to routing. In these instances, you must retrieve, assemble, and place the documents in the appropriate routing bin.

    Note:

    Linked cases, IDRS screen captures, and attached files do not print when a case is routed. If any of these items must be attached to the case, print the items on your local printer and manually associate the printed documents.

    If you only need to route selected pages, print only those pages from the document viewer and manually prepare and attach a routing slip. Annotate the CIS Case ID on the upper left corner of the first printed page. Utilize the "Close" case option instead of the "Reroute" option in these instances (Power of Attorney (POA) Form 2848 or Form 8821 Tax Information Authorization can now be efaxed).

    Exception:

    If the taxpayer is claiming IDT and there is Compliance involvement, (TC 420, TC 300, TC 922, etc.), do not use the reroute option in CIS. Reassign the case on CIS to the appropriate IDTVA function following IRM 25.23.4-5, IDTVA Routing Matrix

  5. CIS offers multiple printer options when routing cases. Selecting the appropriate printer is vital to ensuring the case document is forwarded to the correct area in a timely manner. Delays can be minimized by selecting the correct printer for any rerouted case, as well as providing clear routing instructions.

    Note:

    You must always use a complete stop number in the TO STOP field; including the Alpha designation of the campus, e.g., 1234 FSC; OSC 6273; CSC MS518G. Use only alpha and numeric, no special characters. If you are routing to another CIS campus, select the appropriate campus from the drop-down to print the case for that campus central printer.

  6. In most instances, you will select your Campus' Central printer. Some campuses have designated printers for certain reroute types, such as Automated Underreporter (AUR) routes. Additionally, special routing procedures are needed for reroutes to Examination as discussed in the following paragraphs.

  7. The "Reroute to Examination" option is utilized for any cases closed to Examination. Examples include the following:

    • Audit Reconsideration

      Note:

      BMF Audit Reconsideration may use the option "2 CAT A"

    • Open AIMS

    • Unsubstantiated Math Error referrals open on AIMS

    • Substantiated Math Error referrals with an open TC 420 or TC 570/573

    After entering the necessary comments on the routing form, select the Central printer for the site that input the previous audit assessment or the site with the open AIMS information as determined by the EXAM Employee Group Code (EGC) Contacts located under the "Who/Where" tab on SERP.

    Exception:

    If the taxpayer is claiming IDT and there is Compliance involvement, (TC 420, TC 300, TC 922, etc.), do not use the reroute option in CIS. Reassign the case on CIS to the appropriate IDTVA function following IRM 25.23.4-6, IDTVA Routing Matrix.

  8. The "Reroute to EITC" option should only be used if directed by Examination classifiers or if directed by command code DDBCK. Refer to IRM 21.5.1.5.8, Examination Selected Inventory and Command Code DDBCK, for additional information.

    Exception:

    If the taxpayer is claiming IDT and there is Compliance involvement, (TC 420, TC 300, TC 922, etc.), do not use the reroute option in CIS. Reassign the case on CIS to the appropriate IDTVA function following IRM 25.23.4-6, IDTVA Routing Matrix.

  9. A BMF case may occasionally be scanned as an IMF case and vice versa; case assigned to an incorrect work type (domestic amended return vs international amended return) or the case is a combination BMF/IMF. In these situations, do not "reroute" the case, but utilize the "Update Case Data" function on CIS to change the information from one case type to another and select the appropriate campus from the reassign drop down listing.

    Note:

    If the case is a BMF/IMF combination, complete the required action necessary for the MFT type and update the case notes documenting the actions taken for that specific MFT type and provide a statement why the case is now being reassigned to a different MFT.

    Refer to the CIS CSR Guide for step by step instructions for reassigning the case. The following table outlines where to reassign the cases.

    Site with case in CIS inventory: Reassign to:
    Ogden Kansas City
    Cincinnati Fresno
    Andover, Austin, Memphis, Philadelphia Cincinnati
    Atlanta, Brookhaven, Fresno, Kansas City Ogden
    International cases - BMF only Ogden
    International cases - IMF only Philadelphia
    NOL Carryback claims Refer to the table in IRM 3.13.6, Submission Processing Image Control Team (ICT) Correspondence scanning
  10. Some cases must be printed locally and forwarded to the correct address. Some examples (not all inclusive):

    Example:

    Non-examination cases routed to a non-CIS area - Select your site's Central CIS printer. The Image Control Team (ICT) will forward the prints.

    Example:

    ITIN requests on Form W-7, Application for IRS Individual Taxpayer Identification Number, or ATIN requests on Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions - Select the local CIS printer. ICT will forward the prints with a Form 3210. Please include the following address in the routing remarks:
    IRS - AUSPC ITIN Unit Stop 6090 or
    IRS - AUSPC ATIN Unit Stop 6182
    3651 South Interregional Highway 35
    Austin, TX 78741

  11. Accounts Management (AM) frequently reassigns cases between the different campuses and employees. Prior to reassigning or routing any CIS case, ensure the case is checked for potential statute issues. If no statute issue exists, check the “statute searched” box on the CIS case and reassign the case as directed. If the case reflects a tax increase/credit decrease within 90 days of the Assessment Statute Expiration Date (ASED), do not reassign the case, but forward the case to your local Statute Team. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for additional information.

    Note:

    See IRM 21.3.3.4.9.2, Campus Collection Function Correspondence/Inquiry/Notice, for an account assigned to the Revenue Officer (RO).

CIS Source Documentation

  1. These are general guidelines related to CIS case processing.

  2. Non-Source Document (NSD) adjustments will be entered in the remarks section for most CIS adjustments (REQ54, REQ77, ADD24, ADD34 and ADD48) indicating to Files that no document is required to be filed. The CIS image is the source document and it remains on CIS for further recall if needed. Since the image will remain available on CIS, Alpha File association is also not necessary.

  3. The NSD adjustments should carry the appropriate blocking series as indicated in the subject specific IRM. For example (not all inclusive):

    Example:

    Adjustment without original return should be NSD with blocking series 05 for IMF and 15 for BMF.

    Example:

    Adjustment when the original return has been scanned to the CIS case should be NSD with blocking 00.

    Example:

    Adjustment with a math error should be NSD with blocking 77 or 78. See IRM 21.5.4.5.1, Setting the Initial Math Error Action, for additional information.

    Reminder:

    If the original return was filed electronically, use blocking series 77 and utilize the "capture" feature to attach an IMFOLR or TRPRT screen.

    Example:

    Adjustment to disallow a claim should be NSD with blocking 98 or 99. See IRM 21.5.3.4.6.1, Disallowance and Partial Disallowance Procedures, for additional information on disallowing claims.

    Reminder:

    If the original return was filed electronically, use blocking series 99 and attach an IMFOLR or BMFOLR print. Do not use blocking series 98.

  4. Source Document (SD) adjustments are used when a subject specific IRM reference requires a paper print be sent to Files. Certain IDRS screens and letters need to be printed and sent to Files in accordance with the retention period since this is the only record of the original information if it drops from IDRS.

    Example:

    Scrambled Cases: If a completed Letter 239C questionnaire was not received from at least one taxpayer, attach a copy of the Letter 239C and the history sheet to the most current year return on file for each taxpayer. See IRM 21.6.2.4.2, Scrambled SSN Case Procedures, for further information on handling scrambled cases.

  5. CIS allows attachment of files to individual cases. This functionality allows documents to be saved to a CIS case for future reference, instead of associating the document with a paper case. Certain subject specific IRMs require attachment of documents to the adjustment. The CIS attachment function may be utilized in lieu of a paper attachment.

    Note:

    For detailed information on how to attach documents to a CIS case, refer to the applicable CIS User Guide on SERP under the Local/Sites/Other tab and follow the links to Corresponding Imaging System (CIS).


    Some examples of required attachments (not all inclusive):

    Example:

    The automated Reasonable Cause Assistant (RCA) determinations must be attached to the CIS case. When attaching the RCA determination to the CIS case and not forwarding anything to files, the adjustment is input as NSD. See IRM 20.1.1.3.6.6, Attaching RCA Determination, for additional information.

    Example:

    Injured Spouse worksheets must be attached to the case. See IRM 21.4.6.5.10, Allocation of Injured Spouse Form 8379, for specific information.

    Example:

    Manual interest computations must be attached to the adjustment source document. See IRM 20.2.5.6.2, Manual Computations, for more specific information.

    Reminder:

    Data Security guidelines state that all sensitive data stored on a computer must be encrypted. Once the document has been attached to the CIS case, users should delete the document from their encrypted folder and from the recycle bin. Specific instructions on setting up an encrypted folder can be found in the CIS Guide.

Viewing or Requesting Documents on CIS cases

  1. Any CIS user can view any open or closed case in CIS regardless of where it was scanned. Account Management Services (AMS) users also have the capability to view and print CIS images.

  2. A CIS case is identified by the activity code present on the TXMOD control base. Account adjustments based on a CIS case will reflect a CIS indicator >1 displayed on the TXMOD or a CIS-1 on the IMFOLA screen.

  3. Document requests from CIS sites are pulled and scanned in the Files function and the image is associated with the open CIS case. This includes requests from CIS users of other CIS campus Files functions. CSRs with CIS will input document requests using command code ESTAB with document request code "S" . This code is only used by those working on CIS and notifies Files to scan the requested document instead of sending the paper document.

    Note:

    Documents scanned after the CIS case is closed will not be associated and will create a new CIS case in the system. Review these documents to ensure all necessary actions have been taken and make any applicable corrections, if needed. Create a link between the newly created CIS case and the CIS case that created the document request. Close the newly created CIS case.

  4. Non-CIS Sites will use command code ESTAB with document request code "X" to request printed copies of a CIS scanned document. When a document request is received in Files for a TC 29X document input through CIS, the CIS case will be printed out and sent to the requestor along with Form 5147, IDRS Transaction Record. Files personnel must pull Form 5147 to identify the CIS Case ID. If the adjustment contains a "1" , the CIS Case ID will be printed in the remarks section of Form 5147. Files personnel will use this number to access the case through the CIS Application and complete the document request for the non-CIS user. After locating the case on the CIS workstation, Files personnel will print out the imaged case and route to the requestor.

    Note:

    When requesting the CIS document, entering the CIS ID (if available) in the remarks of the ESTAB request will help expedite the request in Files.

    Reminder:

    Account Management Services (AMS) users also have the capability to view and print the CIS images.

  5. Upon receipt of a document pulled on a CIS workstation or from AMS, you will notice it appears to be a photocopy of a document, as the original documents are preserved as digital images for the required retention period. The printed images may be used just as an original paper document. Returns that are printed from CIS images and sent for processing must be annotated with "CIS IMAGE —Do not correspond for signature" below the signature line. If no adjustment or reprocessing action is taken, destroy the photocopy following normal procedures.

Processing/Reprocessing CIS Tax Returns

  1. For returns being sent for initial "processing" (i.e., return has not posted to another year or TIN), you should edit the return as identified below, and forward the return for processing. Submission Processing will correspond for any missing information on these returns.

  2. A return must be complete before it can be sent for "reprocessing" (i.e., return previously posted to another year or TIN). You are required to correspond for missing signatures, schedules, or forms prior to forwarding to Submission Processing. See IRM 21.5.2.4.23.7, Coding and Editing Procedures, for further information.

  3. To facilitate the processing of CIS returns, the correct tax period, taxpayer identification number, IRS received date (if not stamped on the return), name, and address of the taxpayer must all be clearly edited on the return as required in current procedures. See IRM 3.13.2.2.6, Sole Proprietors and Individual Taxpayers-Name Controls, FRCs, and Authorized Representatives.

  4. Corrections may be made to taxpayer entries by placing an "X" to the left of the incorrect entry and entering the correction to the left. Edits may be made on the CIS image using the annotation tools provided within the CIS Document Viewer. You may also print the document first and make your edits with red ink for IMF and Exempt Organization (EO) returns or green ink for other BMF returns.

  5. If the return is signed, use the Stamp or Text tool in the CIS Document Viewer to add "CIS IMAGE - Do not correspond for signature" to the return below the signature field and the CIS Case ID to the upper left corner of the return. This designation will prevent Submission Processing from treating the signature as a copy. Remember to click the Save button.

    Note:

    Follow program specifics regarding CIS Case ID numbers when reinputting an Exempt Organization (EO) form.

  6. If the return is not signed, refer to the following table:

    If Then
    The return is being forwarded for initial processing,

    Note:

    These returns have not previously posted to an account and will not have a Document Locator Number (DLN).

    1. Submission Processing will correspond for the missing signature.

    2. Do not add the "CIS IMAGE - Do not correspond for signature" notation.

    The return is being reprocessed,

    Note:

    These returns have previously posted to another account and will already have a DLN.

    1. Correspond for the missing signature if not previously requested. Refer to IRM 21.5.2.4.23.7,Coding and Editing Procedures, for additional details.

    2. After the signature is received or the suspense period has expired, add the "CIS IMAGE - Do not correspond for signature" notation.

  7. For campuses with Submission Processing (SP) – Print the complete return on your local printer and check the "Include Annotations" checkbox in the Print Document dialog box, which will include any editing on the printed copy. Underline edits with red ink (IMF) or green ink (BMF). For IMF reprocessable returns, attach Form 3893, Re-Entry Document Control, or other applicable form, and route the paper return to the appropriate stop. For BMF reprocessable returns, utilize Form 13596, Reprocessing Returns, and forward accordingly. See Exhibit 21.5.2-1, Preparing Form 3893, Re-Entry Document Control, or Exhibit 21.5.2-2, Preparing Form 13596, Reprocessing Returns, for instructions on preparing these forms. Returns being forwarded for initial processing are routed to SP using a Form 1725, or similar local routing slip.

  8. For campuses without Submission Processing (SP) – As SP locations are ramped down, the following procedures are necessary to help ensure the proper reprocessing of returns:

    • Complete all necessary edits to the CIS image of the return being reprocessed.

      Reminder:

      If reprocessing a return and moving a previously issued refund, enter Computer Condition Code (CCC) O (use red if an IMF return and use green if a BMF return) in the filing status portion of the return to prevent a second refund per IRM 21.5.2.4.23.10, Moving Refunds. Please enter this CCC on the return and save on CIS before printing.

    • Use the "attach" feature in CIS to attach a completed copy of the appropriate routing form

      Note:

      Form 3893 or Form 13596 is utilized when reprocessing the return. Form 3893 requires a valid DLN that corresponds with the processing site's location code. Form 1725 is used when forwarding the return for initial processing.

    • Suspend the case to your work leader/manager for review, including review of any statute issues

    • After review, the work leader/manager will add a case note documenting approval

      Note:

      If multiple images are attached to the CIS case, clearly identify which image should be forwarded for reprocessing.

    • Work leader/manager will notify the Inventory Control Manager (ICM) that they have an initial or reprocessable return and provide the case ID

    • The ICM will contact the ICM at the partner campus with the details of the case within seven business days of the notification

    • The partner campus will print the necessary information from the case, mark the necessary edits as outlined in (4) above if needed, forward the return to SP, document the actions as a CIS case note, and follow up with the sending ICM within seven business days

      Reminder:

      Check the "Include Annotations" checkbox prior to printing to include any edits on the return.

  9. Initiate any required actions (such as CC REQ54, CC REQ77, and CC FRM49) and then close the case. This is not a CIS Reroute. Leave a brief case note describing the action taken (e.g., TC 150 doc reprocessed to tax period XXXX or TC 976 doc reprocessed to TIN/EIN XX-XXXXXXX).

  10. Open a control base on IDRS, for monitoring purposes, on the TXMOD that the return has been sent for processing. Use “150topost” as the activity, current date for the received date, “M” as the status, and MISC as the category code. Do not close this base until the return posts.

  11. Additional information about how reprocessed images are handled in Files can be found in IRM 3.5.61.2.5, Voided, Reinput, or Canceled Documents.

Incomplete CIS Claims

  1. With CIS, it is no longer necessary to return the entire amended return to the taxpayer when additional information is needed. For direction relating to Carryback Claims, refer to IRM 21.5.9.4.3, Rejecting Unprocessible Carryback Application/Claims, for additional information on carrybacks. For procedures regarding outgoing calls on BMF programs, refer to specific guidance detailed throughout IRM 21.7 and IRM 21.8.

  2. If the issue can be resolved by having the taxpayer fax in missing information, you may attempt to contact the taxpayer/authorized representative by telephone and request the missing information be faxed to you within three (3) business days (Suggested Telephone Script). The following is required for all outgoing telephone calls:

    1. Make two telephone attempts to call taxpayer/authorized representative within your Tour of Duty (TOD).

      Note:

      Conduct all outbound calls between the hours of 8 a.m. and 9 p.m. (taxpayer's time zone) except if taxpayer or their authorized representative specifically provides callback time frames.

    2. When contacting a taxpayer/authorized representative for missing information and you have reached a voice mail box, disconnect the call and use the appropriate letter to request the missing information.

    3. If someone other than the taxpayer/authorized representative answers the telephone and either the taxpayer/authorized representative is unavailable, leave a message to include the following:

    • Your name, identify yourself as an IRS employee and ID number.

    • Advise the third party that you are calling regarding correspondence that was sent in.

    • Ask the third party when the taxpayer/authorized representative will be available.

    • If the third party states the best time to call the taxpayer back, make the second attempt to contact the taxpayer via telephone call.

    • If the third party does not provide a better time to call the taxpayer/authorized representative back, provide the toll-free number and monitor the case for three business days for the taxpayer’s response. If the information needed is not received within that time frame, follow instruction in (9) or (10) below to send a C letter or Form 8009-A.

  3. Leave an AMS/CIS note that includes:

    • CIS case ID number of the case

    • Your EFax number

    • A brief description of what is needed to resolve the case

    • Give the taxpayer a reasonable amount of time to respond by fax but do not exceed more than three (3) business days

      Note:

      If taxpayer calls back on the toll-free line, provide the taxpayer/authorized representative the following information located in the AMS/CIS notes: CIS ID number, EFax number of the controlling CSR, description of what is needed to resolve the case, business day time frame (not to exceed three (3) business days). Then leave an AMS/CIS case note to the CSR with the case control so that they are aware of the taxpayer/authorized representative contact.

  4. For the case controlled CSR, when you have completed the actions in (3) above:

    • Monitor the case for three (3) business days to verify a taxpayer response/resolution.

    • If attempts are unsuccessful and no taxpayer callback was received send the appropriate letter and document on AMS/CIS.

  5. If you reach the taxpayer/authorized representative discuss what is needed and IF the information cannot be taken orally, ask the taxpayer if they can fax the information during the telephone call. If NOT:

    • Provide the taxpayer with the EFax number.

    • Inform the taxpayer to notate the CIS case number on the fax reply.

    • Allow a reasonable time for the taxpayer to fax the information but do not exceed three (3) business days.

    • When fax reply is received, review the fax to ensure all missing information is provided, and adjust the account accordingly.

    • Attach missing information and/or information received by the taxpayer to the CIS case as an attachment. See IRM 21.5.1.5.3, CIS Source Documentation.

  6. If unsuccessful in reaching taxpayer after two attempts within your TOD, see (9) or (10) below for procedures to send a "C" letter or Form 8009-A.

  7. Document all phone attempts made to contact the taxpayer. Notate the time and phone number on AMS. Include the following information:

    1. The reason for the contact.

    2. Who was reached, any messages left, and any contact information provided by the taxpayer.

    3. Results of the call. Document CIS with a case note on each outgoing or incoming call/message, as shown below:

    Example:

    Outcall2tp see details on AMS History.

  8. If the amended return involves a tax increase and/or decrease in credit, refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for processing information. If the amended return involves a Tax Increase and Credit Increase, refer to IRM 21.5.3.4.1.1, Tax Increase and Credit Increase Processing. See IRM 21.5.3.4.3, Tax Decrease and Statute Consideration, for handling tax decreases/no tax change claims or amended returns received within 180 days of the RSED.

    Note:

    For these scenarios (and others), it will allow the CSR to call or write for the missing information). See IRM 21.5.9.4.3, Rejecting Unprocessible Carryback Application/Claims, for additional information on carrybacks

  9. Transaction Code (TC) 971 with Action Code (AC) 270 indicates an amended return is being sent back to the taxpayer. Refer to the 6209 Code Retriever. If returning a CIS print of the amended return to the taxpayer, the TC 971 AC 270 should be input. If closing the case without sending a CIS print of the amended return to the taxpayer, the TC 971 AC 270 should not be input. Details on the different procedures are outlined in the following paragraphs.

  10. If using the "C" letter to request the missing information and not returning a CIS print of the amended return and the claim involves a tax decrease or credit increase:

    • Capture the LPAGE screen of the "C" letter request for the missing information.

      Reminder:

      If the tax decrease is comprised of additional income and additional deductions, the claim must be suspended after requesting the information. Refer to IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for additional information on handling these claims.

    • Input a TC 290 .00 to release the -A freeze

      Note:

      Do not input TC 971, AC 270.

    • Close the case.

  11. If using the Form 8009-A to request the missing information or including a CIS print of the amended return as an attachment to a "C" letter and the claim involves a tax decrease or credit increase:

    • Print pages one and two of the amended return and any other pages specific to the issue.

      Note:

      Annotations can be made prior to printing to highlight any needed information.

    • Enter the CIS ID on the upper left corner of the first page of the claim and save. Return the claim to the taxpayer.

      Caution:

      Extreme care must be taken to ensure that only the material relative to the taxpayer(s) to whom the correspondence is addressed is enclosed in the envelope. Refer to IRM 21.3.3.4.25, Breaches of Personally Identifiable Information (PII) Caused by Manual Stuffing Errors, for additional information.

    • Circle out all received date(s) on the claim or amended return.

    • Input TC 971, AC 270 using the current date for the transaction date (TRANS-DT).

      Note:

      It is not necessary to input TC 290 .00 on an IMF account. Input of the TC 971, AC 270, will release the "-A" freeze on an IMF account. BMF accounts still require the input of a TC 290 to release the "-A" freeze.

    • Attach a copy of the Form 8009-A to the CIS case or provide complete details of the missing information in the case notes (e.g., Missing Schedule EIC, dependent TIN, missing signature, etc.). If using a "C" letter, capture the LPAGE screen.

    • Close the case. See IRM 21.5.3.4.2, Tax Decrease or Credit Increase Processing, for exceptions. See IRM 21.5.9.4.3, Rejecting Unprocessible Carryback Application/Claims, for additional information on carrybacks.

  12. If the response makes the previously rejected and closed case complete, make the adjustment and create a link between the active and archived cases.

CIS Push Codes

  1. Initiate the push code without printing anything from CIS. Indicate in the remarks of the push code, "NSD Image retained in CIS" , or something similar. Ensure the CIS ID is also in the remarks field of the push code.

  2. When the original return posts, a CP98/198 will generate. Since the push code was input as a non-source document (NSD), the CP98/198 will be scanned without the push code document. The Image Control Team (ICT) will scan the CP98/198 to the specific employee number on the CP98/198 to ensure it is controlled to the previous CSR. If no specific number is provided, ICT will scan the CP98/198 to the general queue. The CP98/198 case in CIS can be linked to the original document and the case worked.

  3. Do not utilize push code procedures on CIS cases if it can be determined that the CIS case will not result in an adjustment to the account, such as Section 83(b) elections. In these instances, add a case note to identify what was received and close the CIS case, after addressing any other issues. The CIS image will remain available for future reference and does not need to be printed for association with the original return.

  4. Additional information about push codes can be found in IRM 21.5.1.4.4.2, TC 930 Push Codes.

Examination Selected Inventory and Command Code DDBCK

  1. The Exam Selected Inventory is designed to route Exam selected cases quickly and directly to Exam personnel. CSRs will no longer select a printer for command code (CC) DDBCK selected cases. See IRM 21.6.3.4.2.7.14, EITC and Command Code DDBCK.

  2. CC DDBCK can be initiated through CIS with an IDRS Quick Click button. Unlike other quick clicks, the DDBCK button also gives you the option of capturing the DDBCK response screen to make it a part of your case.

  3. After selecting "Reroute to EITC" on the Active Case page, the "Active Case - Reroute to EITC" page will be displayed. The CSR will select the appropriate campus for the reroute from a drop down selection list. Once the reroute button is clicked, the case will be closed to the CSR and appear in the appropriate campus Exam Selected inventory.

    Note:

    It's strongly recommended to have CSRs "Reroute" cases designated for managerial approval. The case will be placed in the suspense queue, pending approval by the manager or designated lead. Any adjustment deemed necessary prior to using the "reroute" option should be reviewed by the manager or designated lead.

    Note:

    Local Examination may develop alternative methods for retrieving these cases as needed. In these instances, utilizing the "Reroute to EITC" option may not be necessary for every case and the user should follow local Examination guidance.

  4. CAT A classifiers may send copies of cases directly to the Exam Selected inventories while returning the original cases to the CSR for closure. If a CAT A classifier selects a case for examination, in the "Response" section of the "Suspense Case – Assistance" page, they will choose the "selected" radio button, along with "Correspondence Audit" from the "Audit" drop down selection list. This step activates another drop down selection list, where a campus is selected for the review. After performing these steps, the classifiers choose the "Return to CSR" button. A copy of the case is then automatically entered in the "Exam Selected Inventory" for the selected campus. The original case will be returned to the CSR for closure with a case note indicating the case was selected. The CSR will take appropriate actions to close the case (i.e., input TC 971-013, send Letter 86C, if required, and click the Close button). See IRM 21.3.3.4.2.1, Use of 86C letter-Referring Taxpayer Inquiry/Forms to Another Office, for additional information about the 86C letter.

Correspondence Screening in CIS

  1. The Image Control Team (ICT) will forward all incoming AM correspondence to the AM CSR Screener.

  2. The AM CSR screener will sort the correspondence prior to being scanned into CIS.

  3. The following sections and related exhibits provide additional details on this correspondence screening process.

CSR Screening Prior to Scanning – IMF only
  1. For IMF, the CSR screening phase will review the incoming correspondence. Any reroute cases and classified waste will be identified and removed prior to scanning into the Correspondence Imaging System (CIS). The remaining cases will be identified by a specific document type and/or category code.

  2. Reroute cases will be forwarded to the correct area for resolution. A letter explaining the routing of the taxpayer’s correspondence is not required with reroutes identified during this screening. Screeners will report time and a manual count of volumes to 710-40030; working reroutes and the remainder to 710-40000. Manually count the volume of classified waste.

  3. Classified waste should be handled as outlined in IRM 21.5.1.4.10, Classified Waste.

  4. The remaining cases will be sorted into a specific document type for scanning into CIS. The document types are as follows:

    • "Quick Closure" – are cases OTHER THAN AFFORDABLE CARE ACT (ACA) CORRESPONDENCE that can be closed in an expeditious manner and on first touch within 15 - 20 minutes.

      Note:

      Only sort the below document types if The CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 OR THE DOCUMENT TYPE IS ACA CORRESPONDENCE.

    • "Corr - Loose Forms" – forms or schedules with no correspondence or information from the taxpayer

    • "Corr - Math Error" – taxpayer responses to math errors

    • "Corr - Payment Inquiry" – taxpayer inquiries related to missing or misapplied payments

    • "Corr - Penalty" – taxpayer inquiries related to penalties, including requests for penalty abatement

    • "Correspondence" – cases that require additional research or actions and cannot be classified into one of the other correspondence document types

    • "ACA Loose Form" - ACA Loose Forms - Category Code ACA5

    • "ACA Corr" - ACA Correspondence - Category Code ACA7

    • "ACA Corr" - ACA Spanish correspondence - Category Code ACAC

    Note:

    Certain case types will be identified with a specific document type, regardless of the steps or time involved in closing, while other case types will be designated based upon the review of the screening CSR. Specific details, including examples, for the different document types are included in Exhibit 21.5.1-1, IMF CSR Screening of Correspondence.

  5. The screening will include the use of IDRS. IDRS usage guidelines are included in the CSR Screener Procedural Guidance document.

  6. Beginning July 2011, certain CP notices mailed to the taxpayer will contain 2D bar codes. Some of the notices will display the entire Social Security Number (SSN) while others will have the SSN redacted/masked (e.g., xxx-xx-1234). A Hand-held scanner will be available for reading the barcode. If the scanner is unable to read the bar code, command code (CC) TPIIP must be used. For additional information on command code (CC) TPIIP, refer to IDRS Command Code Job Aid located on the Servicewide Electronic Research Program (SERP) under IRM Supplements.

Quick Closure Case Handling within CIS - IMF only
  1. After the screening of correspondence, those cases identified as "Quick Closures" will be scanned into CIS as document type, "Quick Closure" using category code PHZ1. This includes any correspondence other than ACA which can be closed in 15-20 minutes or less. "Quick Closure" document types must be reported to function code 710 and program code 40001. Additional information regarding function and program codes can be found on the OFP website

  2. The work will be scanned into the site’s general inventory queue and will be distributed based upon each CSR’s profile.

  3. "Quick Closure" cases require prompt analysis to determine the workability of the case, including issue identification, and the steps for resolution.

  4. Effective, August 29, 2013, "Quick Closure" cases issue the automated acknowledgement interim letter systemically after the 23rd day from the IRS Received Date. Therefore, in some cases a closing letter would be required unless a notice will generate systemically from an IDRS action.

  5. Additional details regarding the "Quick Closure" screening process, including specific examples, can be found in Exhibit 21.5.1-1, IMF CSR Screening of Correspondence.

Quick Closure Case Handling within CIS - BMF only
  1. Correspondence cases other than ACA correspondence will be scanned into CIS with category code PHZ1 and worked under function 710 and program code 1000X. Additional information regarding function and program codes can be found on the OFP website.

  2. The work will be scanned into the site’s general inventory queue and will be distributed based upon each CSR’s profile or as directed by site management. A designated team(s) in each site will be identified to receive the PHZ1 category code.

  3. PHZ1 case processing is a method used to quickly identify and resolve simple case issues requiring minimal research.

  4. PHZ1 cases require prompt analysis to determine the workability of the case, including issue identification, and the steps for resolution. These cases will have limited IDRS usage. If extensive research or analysis is involved, the case is no longer considered a PHZ1 case and will be reclassified to the correct category code. Some examples include:

    • complicated penalty/interest computations

    • bankruptcy

      Note:

      Phase 1 will complete the insolvency contact sheet prior to forwarding to phase 2, leaving the entire case intact.

    • issues requiring assistance from Entity

    • multiple credit transfers (unless an IDRS Accessory Management Tool (IAT) will allow quick processing)

    • erroneous refunds

    • open controls outside of the site

    • multiple issues

    • pending transaction codes

    • cases requiring extensive research/actions

  5. If unable to close the case expeditiously and the case is not a document type for BMF ACA, update the category code to PHZ2 and reassign to the designated IDRS number identified by the site or follow local procedures.

    Note:

    If the case cannot be quickly closed due to a need for a document request, order the document before updating the category code to PHZ2 and reassigning to the pre-determined "wall queue" IDRS number or follow local procedures. Once reassigned, the PHZ2 cases will be manually distributed to CSRs profiled to work correspondence cases.

  6. BMF ACA document types are not considered PHZ1 or PHZ2 criteria and must be scanned with the correct document type and category code.

    • BMF ACA - Correspondence - BMF correspondence (ACA) related to the following MFT: 00, 01, 05, 06, 10, 11, 14, 16, 34, 43 - category code ACAC.

    • BMF ACA - Correspondence - IRC Section 4980H Employer Responsibility - BMF correspondence referencing Section 4980H for MFT 00, 43 - category code ACA0.

    • BMF ACA-Correspondence - IRC Section Small Business Employer - BMF correspondence referencing IRS Section 45 R for the following MFT: 00, 02, 05, 06, 34 category code ACA1.

Category A Screening in CIS

  1. Category A (CAT-A) 1040X claims will be identified by Submission Processing prior to forwarding to the Inventory Control Team (ICT).

  2. These CAT-A cases will be reviewed by a CSR(s) from Accounts Management. The reviewers will:

    • Ensure the identified claims meet CAT-A criteria as outlined in IRM 21.5.3-2, Examination Criteria (CAT-A) – General, and IRM 21.5.3-3, Examination Criteria (CAT-A) – Credits.

    • Verify the CAT-A reason for referral is properly identified on the cover sheet attached to each claim.

    • Maintain the necessary reports documenting the accuracy of the CAT-A identification by Submission Processing.

    • Provide feedback regarding any misidentification of the claims and return to the Submission Processing contact if not CAT-A.

  3. After review, the cases will be forwarded to ICT for scanning to a designated IDRS number in CIS.

  4. Once scanned, a designated employee(s) at each campus will be assigned the cases for forwarding to the Examination Classifiers for audit determination.

  5. The designated employee(s) will be profiled as a work leader in CIS to enable the necessary reassignment of cases once the cases are returned from Exam. This designated employee(s) will:

    • Pull up the CIS case image to identify the "reason for referral" to CAT-A as documented on the cover sheet attached to the image.

    • Forward the case to CAT-A through CIS and select the appropriate "reason for referral" from the drop-down listing.

    • Reassign cases returned from Examination as directed by the Inventory Control Manager to a designated team(s) for completion.

      Note:

      Cases returned from Examination can be identified and sorted in CIS by clicking the appropriate column heading.

IMF CSR Screening of Correspondence

This is a screening process designed to eliminate classified waste and routes prior to scanning into CIS and to further sort the correspondence into specific document types. Extensive research will not be performed at this step and IDRS will be limited. In addition to the IDRS guidelines included in the information below, additional IDRS guidelines are included in the CSR Screener Procedural Guidance document. Refer to Exhibit 21.5.1-2, IMF CSR Screener Procedural Guidance.

The initial screening process will classify easily recognizable correspondence into the following groups:

  • Reroutes - route to the appropriate function

  • Obvious document types or category codes; (i.e., First-Time Homebuyer Correspondence, Form 14039, Identity Theft Affidavit, Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit) - pull and scan these document types/category code appropriately

    Caution:

    If Form 14039 is attached to an unprocessed return, move the Form 14039 to the back of the unprocessed return and "expedite" the package to Batching for processing.

    Caution:

    If Form 14039 is attached to a response to an IRS letter or CP notice originating outside of AM, move the Form 14039 to the back of the IRS letter or CP notice and "expedite" the package to the function who originated the correspondence (examples: 12C to SP, 4883C or 5071C to RICS, etc.). Refer to Exhibit 3.10.72-2, Correspondex "C" Letters – Routing Guide, and Exhibit 3.10.72-3, Computer Paragraph (CP) Notices - Routing Guide, as needed.

  • ACA Correspondence - pull and scan these document types/category codes appropriately

  • Injured Spouse Claims - pull and scan these document types/category codes appropriately

  • Spanish - pull and scan these document types/category codes appropriately

Note:

Some sites may assign specific case types to a designated number.

For Correspondex "C" letters - Routing Guide - refer to IRM 3.10.72-2. For Computer Paragraph (CP) Notices - Routing Guide - refer to IRM 3.10.72-3.

The following identifies some common reroutes:

  • Exam issues - CP 22E, Examination Adjustment Notice, if attached

  • AUR - CP 2000, CP 2501, or Form 5564 Stat Letter

  • Form 8857, Request for Innocent Spouse Relief

  • Letter 2761C replies - forward to TPR or as directed by each site

  • Form 3949-A, Information Referral, or other informant correspondence

International IMF or BMF correspondence must be scanned locally with the appropriate category code, systemically the case will be sent to Philadelphia (IMF) or Ogden (BMF).

  • International cases are identified using criteria in IRM 21.8.2.2.1, Campus Consolidation and Program Centralization.

  • International POA/TIA can be identified by indication on the form of one or more of the following: foreign taxpayer address, foreign preparer address, ITIN, or Form 1040NR or Form 1120F. Do not detach the form from the case.Correspondence solely to process International Form 2848 Power of Attorney or Form 8821 Tax Information Authorization - route to:
    PAMC International CAF Unit
    2970 Market St - MS 4.H14.123
    Philadelphia, PA 19104

    Note:

    If the correspondence is about an account change request (such as a math error reply) and it contains a Form 2848, then the form would be scanned with the rest of the correspondence. If the correspondence is only court documents supporting he Form 2848 and/or an explanation of why the taxpayer is submitting the form (such as aging issues for a parent), then the case would be routed to the appropriate CAF unit.

Phased Approach to Inventory (PAI) is CSR time spent screening the correspondence. All classified waste documents and all reroutes volumes will be reported and provided to management staff.

The CSR screeners will review the correspondence and classify the documents into the following groups:

  • Classified Waste - destroy the document in accordance with IRM 21.5.1.4.10, Classified Waste

  • Reroutes - forward to the appropriate area

Reminder:

If multiple cases are erroneously routed to AM from the same area/site, notify the Inventory Control Manager (ICM) so the feedback can be shared with the responsible areas.

If the document types below can be closed in 15-20 minutes or less Scan into CIS as "Quick Closure" , category code PHZ1:

Note:

If any Quick Closure document type listed below contains multiple years/tax modules during research, determine if each year/tax module can be closed in 15-20 minutes or less per year/module. Scan to CIS as Quick Closure, category code PHZ1:

  • "Corr-Math Error"

  • "Corr-Payment Inquiry"

  • "Corr-Penalty"

  • "Correspondence"

Other specific document types/category codes as identified (e.g., CP 08/09/27 , Form 1040X, etc.)

Note:

When screening correspondence, ensure that the taxpayer identification information is available (e.g., Social Security Number, name, and address). CSR screeners will refer to the chart BELOW which contains specific information on some common case types (not all inclusive).

Reminder:

IDRS use will be limited to identification of possible classified waste/reroute situation or as otherwise indicated.

Case Type Examples
Classified Waste – Refer to IRM 21.5.1.4.10, Classified Waste, for additional information
  • Remittance advice/payment stubs (e.g., "Here's my payment" or just a payment stub with an amount)

    Note:

    Payment stubs with a phone number that is an exact match to phone number present on IDRS, destroy as classified waste. Payment stubs with phone number (not an exact match on IDRS) or other information should be forwarded as document type "Quick Closure " category PHZ1. Taxpayer correspondence request for transcript, forward as document type "Quick Closure" , category code PHZ1.

  • CP 08/09/27 indicating the taxpayer is not eligible

    Note:

    If not classified waste, scan as document type "Internal Transcript" .

  • "True duplicate" or "previous action" copy of a return

  • Responses to interim letters if the closing action was completed after the date of the taxpayer's response (i.e., "crossed in the mail" )

  • Correspondence with no taxpayer identifying information (i.e., No name or address)

  • Undeliverable CP 08/09/27 and CP 85/87

  • Replies to Letter 63C

  • Any other documents requiring no action or any documents not needed as substantiation for information on a return

Reroutes – forward to the appropriate area
  • Original returns forwarded to processing

  • Letter 12C replies when original return is still in ERS

  • Replies to open Examination issues

  • Open AUR cases

  • Collection issues

  • Loose forms needed in other areas

  • Letter 4310C - forward to Integrity & Verification Operation (IVO) (location on letter)

Quick Closures - sort as document type "Quick Closure" unless the document type is ACA Correspondence
  • Quick Closures Criteria does not include ACA Correspondence - All correspondence including aged correspondence which can be closed in 15-20 minutes or less (except for ACA Correspondence).

    Note:

    CSR judgment will be used in these instances. For example, a document with multiple pages and lots of information may require an excessive amount of time just for reading and should be classified as "Correspondence" only if CSR screener determines the case cannot be closed in 15 - 20 minutes or less.

Loose Forms – Sort as document type "Corr - Loose Form" This document type does not include ACA loose forms.
  • Generally, any loose form or schedule that does not have taxpayer correspondence attached (some specific forms are included below) – check IDRS for reroute or classified waste/previous action on all loose forms unless indicated below

    Note:

    Some loose forms are exceptions and will be scanned to another document type. See "Loose Form Exceptions" below.

  • Loose certificates (e.g., death certificates, birth certificates) - check IDRS for reroute or classified waste/previous action

  • Letter 12C replies - check IDRS to determine if original return is still in Rejects (ERS)

  • Section 83b elections - do not check IDRS

  • Form 8606, Nondeductible IRAs - do not check IDRS

  • Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

  • Form 8812, Additional Child Tax Credit

  • Loose Form Exceptions:

    • Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts - classify as document type "Corr - Penalty"

    • Form 843, Claim For Refund and Request for Abatement, if requesting a penalty abatement - classify as document type "Corr - Penalty"

    • Form 8862, Information to Claim Earned Income Credit After Disallowance - classify as document type "Corr - Math Error"

Math Error - Sort as document type "Corr - Math Error" ONLY IF THE CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 MINUTES OR LESS OR THE DOCUMENT TYPE IS NOT ACA CORRESPONDENCE
  • Any correspondence in response to a math error condition

  • Form 8862, Information to Claim Earned Income Credit After Disallowance

  • Includes any correspondence with a math error CP notice attached

  • Classify as math error without further analysis if any of the following CP notices are attached:

    • CP 10 or CP 10A

    • CP 11, CP 11A, or CP 11M

    • CP 13, CP 13A, or CP 13M

    • CP 16

Payment Inquiry - Sort as document type "Corr - Payment Inquiry" ONLY IF THE CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 MINUTES OR LESS OR THE DOCUMENT TYPE IS NOT ACA CORRESPONDENCE
  • Taxpayer correspondence which includes verbiage related to missing payment, including a payment or notice stub with a statement indicating "previously paid" or similar statement

  • Any correspondence which includes a copy of a canceled check

Interest Inquiry -
ONLY IF THE CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 MINUTES OR LESS OR THE DOCUMENT TYPE IS NOT ACA CORRESPONDENCE
  • Interest abatement requests and inquiries

  • Form 843, Claim For Refund and Request for Abatement box 5, is check requesting interest abatement

  • Screeners MUST do a separate sort for interest abatement requests.

Penalty - Sort as document type "Corr - Penalty" ONLY IF THE CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 MINUTES OR LESS OR THE DOCUMENT TYPE IS NOT ACA CORRESPONDENCE
  • Penalty abatement requests and inquiries

  • Form 2210

  • Form 843, Claim For Refund and Request for Abatement, if filed for a penalty abatement – If not a penalty abatement, sort as document type "Correspondence"

    Note:

    Civil penalty abatement requests should be researched on IDRS for possible reroute prior to classification.

Correspondence - Sort as document type "Correspondence" ONLY IF THE CSR SCREENER DETERMINES THE CASE CANNOT BE CLOSED IN 15 - 20 MINUTES OR LESS OR THE DOCUMENT TYPE IS NOT ACA CORRESPONDENCE
  • Examination issues

  • AUR issues

  • Balance due explanation

  • Form 843, Claim For Refund and Request for Abatement, if not filed for a penalty abatement

    Note:

    If filed for a penalty abatement, sort as document type "Corr - Penalty"

    .

  • 449C letter responses - separate for scanning to the IDRS number that generated the letter

  • 216C letter responses - separate for scanning to the IDRS number that generated the letter

  • 662C letter responses - separate for scanning to the IDRS number that generated the letter

  • 2364C letter responses - separate for scanning to the IDRS number that generated the letter

  • 4734C letter responses - separate for scanning to the IDRS number that generated the letter

  • Any cases as identified by the Inventory Control Manager

  • Specialized cases identified by each site, such as interest computation/abatement claims

  • Any correspondence not applicable to another document type after IDRS research

Form 1040X
  • Any Form 1040-X, Amended U.S. Individual Income Tax Return, missed in the ICT screening

Internal Transcript
  • CP 08, Additional Child Tax Credit

  • CP 09, Earned Income Credit - You May Be Entitled to EIC

  • CP 27, EIC Potential for T/P Without Qualifying Children

  • CP 85, Exam EIC "Soft" Notice

  • CP 87, Exam Dupe TIN Notice

ID Theft
  • Category Code - IDT5

  • Correspondence attached to CP 01, CP 01E, or CP 01S

  • Letter 4281C replies or undeliverables

  • Letter 4445C replies or undeliverables

ID Theft IDT7
  • 5835C replies or undeliverables

IMF CSR Screener Procedural Guidance

Enhanced Use of IDRS

Note:

These items are not all inclusive. Any case that can be closed in 15-20 minutes or less should be considered a Quick Closure Criteria UNLESS the document type is ACA correspondence. Remember, CSR screeners are not trying to work the case to resolution.

There are no changes to current procedures for any cases that can be clearly identified as meeting reroute or classified waste criteria without the use of IDRS. Prior to sending the remaining cases to be scanned, briefly review IDRS to look for additional potential reroute or classified waste criteria as follows:

Command Code (CC) SUMRY response shows:

  1. Open controls - research TXMOD for possible reroute criteria

  2. Pending actions - briefly research TXMOD for possible previous action/classified waste criteria. If this cannot be determined quickly, then send case to be scanned.

  3. No control/action - send document to be scanned

Review collection status on CC SUMRY/TXMOD

  1. Status 22 - route to ACS unless case requires an adjustment action

  2. Status 26 - research TXMOD for Revenue Officer (RO) assignment number on any tax period and route to RO if applicable. See IRM 5.19.1.4.1, Account Actions on Referrals/Redirects for more information

  3. Status 42, 43, 44, 46, or 91 - route to Compliance

  4. Status 53 - research TXMOD for CNC criteria and route to Compliance unless case requires an adjustment action

  5. Status 60 - route to Compliance unless case requires an adjustment action

  6. Status 71 - research TXMOD for TC 780; if present, reroute to OIC

Review freeze codes on CC SUMRY/TXMOD

  1. F- - route to Ogden Frivolous Return Program

  2. -J - route to Exam

  3. -L - research AMDISA for AIMS status, route if appropriate

  4. -Q - research TXMOD/AMDISA for reroute criteria

  5. -R - research TXMOD/ENMOD for Integrity & Verification Operation (IVO) criteria

  6. T- - TDA status. See Status 22 and Status 26 above

  7. U- - see Status 60 above

  8. -Y - research TXMOD for TC 780; if present, route to OIC

  9. -Z - research TXMOD/AMDISA for Project Code; if 0173, 0263, 0390, 0584, 0603 or 0611, route to Exam. Exception - if TC 421 has posted, route to IVO or CI as indicated in the module. Combination "-L" and "Z" freeze. When both are present, research CC AMDISA. If the Audit Information Management System (AIMS) status code is 08 or less, Criminal Investigations (CI) retains control of the case. If the AIMS status code is 09 or greater, Examination has jurisdiction

Additional Quick Closure Criteria UNLESS criteria is met for ACA Correspondence.

Note:

Additional case types will be classified as Quick Closures so they can be worked expeditiously. Cases will be scanned into CIS as document type "Quick Closure" category PHZ1 using function and program code, 710-40001.

Existing Quick Closure Criteria:

  • Address Changes

  • Forms and Transcript requests

  • Notice stub with phone number only

  • Payment acknowledgement (payment with green money)

  • CP12 series of math error notices

  • Letter 12C and Letter 143C

  • Math error responding to SSN change

  • Dependent/exemption issues

  • Schedules related to credits

  • Penalty abatement related to failure to file/pay on a single tax period

International Quick Closures will be scanned into CIS as document type "SPC1" using function and program code, 710-33043.

  • IRM 21.8.1.11.16, Gambling Winnings.

  • Responses to International CP32A (refund not cashed).

  • Correspondence with one of the following loose Forms: Form 1116, Form 8621, or Form 2555.