25.23.2 Identity Protection and Victim Assistance - General Case Processing

Manual Transmittal

September 20, 2018

Purpose

(1) WI Accounts Management continues its re-engineering efforts to consolidate identity theft case processing under one organization. The consolidation and major reorganization of this IRM has been done in an effort to defragment identity theft policy and case processing guidance servicewide. Editorial changes have been made throughout the IRM to clarify language and improve information delivery.

Material Changes

(1) This IRM remains the procedural guide for IMF Identity Theft Victim Assistance servicewide.

(2) IRM 25.23.2.1 Internal Controls renamed section and added information

(3) IRM 25.23.2.1.1 Acronyms, Definitions and Background of the Identity Protection Program new section

(4) IRM 25.23.2.1.2 Related Internal Revenue Manuals (IRM) and other Reference Materials renumbered from IRM 25.23.2.1.1, corrected referenced IRM title and added additional resources.

(5) IRM 25.23.2.2 Taxpayer Interaction added reason for contacting the FTC.

(6) IRM 25.23.2.3 Assessing the Scope of the Taxpayer’s Issues corrected SSI definition.

(7) IRM 25.23.2.5 Taxpayer Advocate Service reworded guidance and added link.

(8) IRM 25.23.2.6 Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU) changed title to reflect new name for IPSU and corrected link.

(9) IRM 25.23.2.6.1 Form 14103, Identity Theft Assistance Request (ITAR)- Guidance for Form 14103 Receipt corrected links and function name.

(10) IRM 25.23.2.7 Identity Theft Research corrected link.

(11) IRM 25.23.2.8 When to Update the Victim's Address corrected link.

(12) IRM 25.23.2.11 Account Monitoring corrected link.

(13) IRM 25.23.2.11.1 Documentation of Actions corrected link.

(14) IRM 25.23.2.12.1 Statute Protection - Single Return corrected links.

(15) IRM 25.23.2.13 Identity Theft Liaison Responsibilities removed word.

(16) IRM 25.23.2.14.1 Identity Theft Assistance Requests (ITAR) Referrals corrected link and changed IPSU to IDTVA-I.

(17) IRM 25.23.2.15 Tracking and Reporting Identity Theft Cases - Identity Theft Indicators clarified chart for IP-PIN eligibility.

(18) IRM 25.23.2.15.2 Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft

(19) IRM 25.23.2.16 Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators reworded history requirement and corrected link.

(20) IRM 25.23.2.16.1 IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522 moved procedures for same day close up.

(21) IRM 25.23.2.16.3 TC 971 AC 522 PNDCLM/UNWORK/IRSID - Incorrect Tax Year corrected link.

(22) IRM 25.23.2.16.4.1 Invalid Identity Theft Determinations – TC 972 AC 522 NORPLY moved NOIDT to new section.

(23) IRM 25.23.2.16.4.2 Invalid Identity Theft Determinations – TC 972 AC 522 NOIDT new section

(24) IRM 25.23.2.17 Identity Theft Claims - Overview added procedures for same day close.

(25) IRM 25.23.2.17.1 When to Request Additional Information to Support an Allegation of Identity Theft corrected link.

(26) IRM 25.23.2.17.2 Marking Taxpayer Accounts When Accepting Identity Theft Claims added reminder about non-expiration of markers.

(27) IRM 25.23.2.17.3 Electronic Products Service and Support (EPSS) Disabled Accounts added quotation marks.

(28) IRM 25.23.2.18 Closing Identity Theft Issues added reminder about non-expiration of markers.

(29) IRM 25.23.2.18.1 Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 reworded history requirement.

(30) IRM 25.23.2.18.3 Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506 reworded history requirement.

(31) IRM 25.23.2.18.5 Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI) added procedure for cases with no open module.

(32) IRM 25.23.2.19 Miscellaneous Identity Theft Indicators added reminder about non-expiration of markers

(33) IRM 25.23.2.19.1.1 TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M corrected link and corrected wording.

(34) IRM 25.23.2.19.1.2 TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL reworded history requirement.

(35) IRM 25.23.2.19.1.3 Manually Reversing TC 971 AC 504 unrestricted title

(36) IRM 25.23.2.19.2 IRS Data Loss Incidents - TC 971 AC 505 corrected link.

(37) IRM 25.23.2.19.3 TC 971 AC 523 unrestricted title.

(38) IRM 25.23.2.19.4 Locking Decedent Accounts - TC 971 AC 524 corrected links.

(39) IRM 25.23.2.19.4.1 Manually Reversing TC 971 AC 524 - Date of Death Present on Command Code INOLES corrected links

(40) IRM 25.23.2.19.5 Employment-related Identity Theft – TC 971 AC 525 removed “please”.

(41) IRM 25.23.2.20 Identity Protection Personal Identification Number (IP PIN) corrected years.

(42) IRM 25.23.2.20.1 Lost, Misplaced or Non-Receipt of IP PIN corrected spelling and fixed link title.

(43) IRM 25.23.2.20.2 IP PIN Opt-In Available For Designated Taxpayers Who Are Not ID Theft Victims corrected link and spelling.

(44) IRM 25.23.2.20.3 IP-PIN Issues corrected spelling.

(45) IRM 25.23.2.21.1 Identity Theft Identified by Criminal Investigation corrected function names.

(46) IRM 25.23.2.21.2 Return Integrity and Compliance Services (RICS) . Identity Theft Identified by: Integrity & Verification Operations (IVO) and the Taxpayer Protection Program (TPP)
Excludes Former WI Compliance Exam Operations added links.

(47) IRM 25.23.2.21.2.1 Operation Mass Mailing (OMM) Cases - Processing Good Returns removed outdated OMM information.

(48) IRM 25.23.2.21.2.2 Returns Selected by Identity Theft Filters - Taxpayers Visiting the TAC substantial changes to authentication procedures for members of certain religious sects and POAs.

(49) IRM 25.23.2.21.2.3 MFT 32 - Overview corrected years.

(50) IRM 25.23.2.21.3 Identity Theft Identified by Submission Processing corrected links.

(51) IRM 25.23.2.22.1 Get Transcript Incident - Non-Tax Related Form 14039 IDTVA-IPSU corrected link.

(52) IRM 25.23.2.22.2 Get Transcript Incident - Tax Related Case Resolution corrected link.

(53) IRM 25.23.2.23 Get an Electronic Filing PIN Incident - Background corrected dtae.

(54) IRM 25.23.2.23.1 Get an Electronic Filing PIN Incident - How to Identify These Accounts corrected link.

(55) IRM 25.23.2.23.2 Actions to Take When Taxpayers Call corrected link.

(56) IRM 25.23.2.23.2.1 IDTVA-I (IPSU) Employees ONLY - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY corrected link.

(57) IRM 25.23.2.23.2.2 All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY corrected links.

(58) IRM 25.23.2.24 Free Application for Federal Student Aid (FAFSA) Incident fixed links and clarified wording

(59) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.2 Required Case and History Notes added procedures.

(60) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.4 Addressing All Taxpayer Issues added procedures.

(61) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.6 Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU) moved to IRM 25.23.2.14.1 to remove duplicate information.

(62) IPU 18U0076 issued 01-17-2018 IRM 25.23.6.1 Form 14103 Identity Theft Assistance Request (ITAR) - Guidance for Form 14103 Receipt deleted to remove duplicate information.

(63) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.6 Identity Theft Research corrected links.

(64) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.7 When to Update the Victim's Address corrected links

(65) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.9 IDT Case Processing Time Frames corrected letter number and link and removed IDT2 reference.

(66) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.11.2 Statute Protection - Multiple Returns - SSN owner’s return has not posted updated example

(67) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.13.1 Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU) new section.

(68) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.14 Tracking and Reporting Identity Theft Cases - Identity Theft Indicators corrected links

(69) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.14.1 Tracking IMF Tax-Related Identity Theft Inventory corrected links

(70) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.14.2 Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft corrected links.

(71) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.15 Identity Theft Claims - Overview renumbered section to improve flow.

(72) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.15.1 When to Request Additional Information to Support an Allegation of Identity Theft renumbered section to improve flow.

(73) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.15.2 Marking Taxpayer Accounts When Accepting Identity Theft Claims renumbered section to improve flow.

(74) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.15.3 Electronic Products Service and Support (EPSS) Disabled Accounts renumbered section to improve flow.

(75) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.16 Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators and removed date.

(76) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.16.1 IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522 added tax-related to claim statement.

(77) IRM 25.23.2.16.1.1 Fraudulent Identity Theft Claims Submitted by Individuals Who Do Not Appear to be Victims of Identity Theft reworded caution.

(78) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.16.3 TC 971 AC 522 PNDCLM/UNWORK/IRSID - Incorrect Tax Year corrected link.

(79) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.16.4.1 Invalid Identity Theft Determinations - TC 972 AC 522 NORPLY reworded paragraph in second box.

(80) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.16.4.2 Invalid Identity Theft Determinations - TC 972 AC 522 NOIDT added Hold Code.

(81) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.17 Closing Identity Theft Issues moved reminder below paragraph to improve flow and reset along with its subsections to fix ID Tag issue.

(82) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.1 IMF TC 971 AC 504 corrected links.

(83) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.1.1 TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M corrected link.

(84) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.1.2 TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL removed date.

(85) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.1.3 Manually Reversing TC 971 AC 504 removed date.

(86) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.2 IRS Data Loss Incidents - TC 971 AC 505 corrected link.

(87) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.4.2 Manually Reversing TC 971 AC 524 - Date of Death Present on Command Code INOLES corrected links.

(88) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.18.5 Employment-related Identity Theft - TC 971 AC 525 changed control from IDT2 to IDT1 and corrected links

(89) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.19 Identity Protection Personal Identification Number (IP PIN) renumbered and corrected verbiage.

(90) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.19.1 Lost, Misplaced or Non-Receipt of IP PIN corrected link.

(91) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.19.2 IP PIN Opt-In Available For Designated Taxpayers Who Are Not ID Theft Victims corrected links.

(92) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.20.2.2 Returns Selected by Identity Theft Filters - Taxpayers Visiting the TAC corrected link.

(93) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.20.3 Identity Theft Identified by Submission Processing corrected link.

(94) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.21.1 Get Transcript Incident - Non-Tax Related Form 14039 IDTVA-IPSU corrected links.

(95) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.21.2 Get Transcript Incident - Tax Related Case Resolution corrected links.

(96) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.22.2.1 IDTVA-I (IPSU) Employees ONLY - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY corrected link.

(97) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.22.2.2 All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY corrected links.

(98) IPU 18U0076 issued 01-17-2018 IRM 25.23.2.23.1 FAFSA Incident - CP302 added secondary date note.

(99) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-1 Acronyms and Definitions corrected date.

(100) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-2 IMF Only TC 971 AC 501 - Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501 added and removed MISC codes.

(101) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-3 IMF Only TC 972 AC 501 - Reversal of TC 971 AC 501 added and removed MISC codes.

(102) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-4 IMF Only TC 971 AC 504 - corrected date and TC code.

(103) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-8 IMF Only TC 971 AC 506 - IRS Determined Tax-Related Identity Theft Case Closure corrected TC code and added and removed MISC codes.

(104) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-9 IMF Only TC 972 AC 506 - Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified added and removed MISC codes.

(105) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-10 IMF Only TC 971 AC 522 - Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion) added and removed MISC codes.

(106) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-11 IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522 added and removed MISC codes and added tables.

(107) IPU 18U0076 issued 01-17-2018 Exhibit 25.23.2-16 IDRS Category Controls by Function remove IDT2 and its row from the first table and IDI8 and its row from the second table.

(108) IPU 18U0173 issued 01-25-2018 IRM 25.23.2.11.4 Barred Statutes updated procedures.

(109) IPU 18U0173 issued 01-25-2018 IRM 25.23.2.19.1 Lost, Misplaced or Non-Receipt of IP PIN updated reissuance rules and dates.

(110) IPU 18U0264 issued 02-07-2018 IRM 25.23.2.21.2 Get Transcript Incident - Tax Related Case Resolution updated letter 239C procedures.

(111) IPU 18U0264 issued 02-07-2018 IRM 25.23.2.22.2.2 All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY updated letter 239C procedures.

(112) IPU 18U0264 issued 02-07-2018 IRM 25.23.2.24 Incident Numbers CR20170421067 and LR20170421067 added link to letter 239C procedures.

(113) IPU 18U0264 issued 02-07-2018 Exhibit 25.23.2-10 IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion) added MISC code procedures for functions outside IDTVA.

(114) IPU 18U0366 issued 02-28-2018 IRM 25.23.2.1.1 Acronyms, Definitions and Background of the Identity Protection Program inserted missing commas.

(115) IPU 18U0366 issued 02-28-2018 IRM 25.23.2.1.2 Related Internal Revenue Manuals (IRM) and other Reference Materials corrected punctuation.

(116) IPU 18U0366 issued 02-28-2018 IRM 25.23.2.2 Taxpayer Interaction corrected links.

(117) IPU 18U0366 issued 02-28-2018 IRM 25.23.2.19 Identity Protection Personal Identification Number (IP PIN) updated examples and moved information to improve flow.

(118) IPU 18U0366 issued 02-28-2018 IRM 25.23.2.19.1 Lost, Misplaced or Non-Receipt of IP PIN reworked procedures for clarity.

(119) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.2 Taxpayer Interaction added note.

(120) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.2.1 Priority Handling of Identity Theft Cases added form.

(121) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.2.2 Required Case and History Notes corrected note.

(122) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.4 Addressing All Taxpayer Issues corrected links and added procedures.

(123) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.7 When to Update the Victim's Address changed IRM in link.

(124) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.10 Account Monitoring combined information into IRM 25.23.2.4 and deleted section.

(125) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.10.1 Documentation of Actions combined information into IRM 25.23.2.2.2 and deleted section.

(126) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.10.3 Statute Protection - Multiple Returns - SSN owner’s return has posted updated example.

(127) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.11 Identity Theft Liaison Responsibilities renumbered, corrected link and updated procedure.

(128) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.12.1 Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU) renumbered, corrected links and updated procedure.

(129) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.12.1.1 Identity Theft Assistance Requests (ITAR) Referrals combined two sections into one subsection.

(130) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.13 Tracking and Reporting Identity Theft Cases - Identity Theft Indicators renumbered, corrected links and IP-PIN acquisition procedures in table.

(131) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.13.2 Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft updated title and added link.

(132) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.14 Identity Theft Claims - Overview added exception.

(133) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.14.1 When to Request Additional Information to Support an Allegation of Identity Theft changed from incident to breach

(134) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.14.2 Marking Taxpayer Accounts When Accepting Identity Theft Claims changed history placement.

(135) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.15 Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators corrected link titles.

(136) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.15.1 IMF Identity Theft - Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522 renumbered, corrected links and added exception.

(137) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.15.2 IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID added exception.

(138) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.15.4.1 Invalid Identity Theft Determinations - TC 972 AC 522 NORPLY added exception.

(139) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.15.4.2 Invalid Identity Theft Determinations - TC 972 AC 522 NOIDT renumbered, added exception and corrected link.

(140) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.16 Closing Identity Theft Issues renumbered, added exception and corrected links.

(141) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.16.1 Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 renumbered, added exception and corrected link.

(142) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.16.2 Manually Reversing TC 971 AC 501 added reminder.

(143) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.16.3 Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506 renumbered, removed duplicate information, added exception and corrected links.

(144) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.16.4 Manually Reversing TC 971 AC 506 renumbered, added information and corrected punctuation.

(145) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.17.1 IMF TC 971 AC 504 corrected link titles.

(146) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.17.1.3 IMF Only - Manually Reversing TC 971 AC 504 updated title.

(147) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.17.2 IRS Data Loss Breaches - TC 971 AC 505 removed IPSO from 505 input and updated title.

(148) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.17.5 Employment-related Identity Theft - TC 971 AC 525 added note about access.

(149) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.18 Identity Protection Personal Identification Number (IP PIN) added wording clarification.

(150) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.18.1 Lost, Misplaced or Non-Receipt of IP PIN renumbered and clarified procedures.

(151) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.19.2.2 Returns Selected by Identity Theft Filters - Taxpayers Visiting the TAC clarified procedure.

(152) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.19.3 Identity Theft Identified by Submission Processing added links.

(153) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.20.2 Get Transcript Incident - Tax Related Case Resolution updated letter info.

(154) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.21.2 Actions to Take When Taxpayers Call added procedure.

(155) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.21.2.2 IDTVA-I (IPSU) Employees ONLY - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY added procedure.

(156) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.22 Free Application for Federal Student Aid (FAFSA) Incident updated incident to breach and change info to past tense.

(157) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.23 Incident Numbers CR20170421067 and LR20170421067 changed incident to breach.

(158) IPU 18U0719 issued 05-03-2018 IRM 25.23.2.24 Form 8821 Incident changed incident to breach.

(159) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-4 IMF Only TC 971 AC 504 added Unemployment to EMPL chart.

(160) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-6 IMF Only TC 971 AC 505 - IRS Data Loss Breaches updated title and language.

(161) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-9 IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified added exception.

(162) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-10 IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion) updated note.

(163) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-11 IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522 added caution.

(164) IPU 18U0719 issued 05-03-2018 Exhibit 25.23.2-16 IDRS Category Controls by Function added procedure statement to IDI 3 in chart.

(165) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.10.2 Statute Protection - Multiple Returns - SSN owner’s return has not posted Added exception.

(166) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.13.2 Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft reworded and reordered entire section.

(167) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.14.3 Electronic Products Service and Support (EPSS) Disabled Accounts added letter and paragraphs.

(168) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.15.1 IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522 added post delay warning.

(169) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.15.2 IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID added post delay warning.

(170) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.15.3 TC 971 AC 522 PNDCLM/UNWORK/IRSID - Incorrect Tax Year changed IRSERR to NOIDT.

(171) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.16 Closing Identity Theft Issues added post delay warning.

(172) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.16.1 Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 added post delay warning.

(173) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.16.3 Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506 added post delay caution.

(174) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.19.2.2 Returns Selected by Identity Theft Filters - Taxpayers Visiting the TAC updated reminder.

(175) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.20.2 Get Transcript Incident - Tax Related Case Resolution corrected letter requirements.

(176) IPU 18U0951 issued 06-15-2018 IRM 25.23.2.23 Incident Numbers CR20170421067 and LR20170421067 changed letter.

(177) IPU 18U0951 issued 06-15-2018 Exhibit 25.23.2-2 IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501 corrected date input and adjusted history input.

(178) IPU 18U0951 issued 06-15-2018 Exhibit 25.23.2-4 IMF Only TC 971 AC 504 adjusted history input.

(179) IPU 18U0951 issued 06-15-2018 Exhibit 25.23.2-10 IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion) corrected date format and history input.

(180) IRM 25.23.2.2 Identity Theft Claims- Overview new section.

(181) IRM 25.23.2.2.1 Taxpayer Interaction moved from 25.23.2.2.

(182) IRM 25.23.2.2.2 Priority Handling of Identity Theft Cases moved from 25.23.2.1.

(183) IRM 25.23.2.2.3 IDT Case Processing Time Frames moved from 25.23.2.9.

(184) IRM 25.23.2.3 Identity Theft Claims – General Guidelines.moved from 25.23.2.14.

(185) IRM 25.23.2.3.1 Assessing the Scope of the Taxpayer’s Issues moved from 25.23.2.3.

(186) IRM 25.23.2.3.1.1 Addressing All Taxpayer Issues moved from 25.23.2.4.

(187) IRM 25.23.2.3.2 Identity Theft Case Controls moved from 25.23.2.8.

(188) IRM 25.23.2.3.3 Required Case and History Notes moved from 25.23.2.2.2.

(189) IRM 25.23.2.3.4 Identity Theft Research moved from 25.23.2.6.

(190) IRM 25.23.2.3.5 When to Request Additional Information to Support an Allegation of Identity Theft moved from 25.23.2.14.1.

(191) IRM 25.23.2.3.6 When to Update the Victim's Address moved from 25.23.2.7.

(192) IRM 25.23.2.3.7 Marking Taxpayer Accounts When Accepting Identity Theft Claims moved from 25.23.2.14.2.

(193) IRM 25.23.2.3.8 Taxpayer Advocate Service moved from 25.23.2.4.

(194) IRM 25.23.2.3.9 Electronic Products Service and Support (EPSS) Disabled Accounts moved from 25.23.2.14.3.

(195) IRM 25.23.2.4 IDT Indicators and Action Codes – Tax Related new section.

(196) IRM 25.23.2.4.1 Tracking and Reporting Identity Theft Cases - Identity Theft Indicators moved from 25.23.2.13

(197) IRM 25.23.2.4.2 Tracking IMF Tax-Related Identity Theft Inventory moved from 25.23.2.13.1.

(198) IRM 25.23.2.4.3 Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft moved from 25.23.2.13.2.

(199) IRM 25.23.2.4.4 Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators moved from 25.23.2.15.

(200) IRM 25.23.2.4.4.1 IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522 moved from 25.23.2.15.1.

(201) IRM 25.23.2.4.4.2 Mass Input of Identity Theft Tracking Indicators moved from 25.23.2.13.3.

(202) IRM 25.23.2.4.3 IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID moved from 25.23.2.15.2.

(203) IRM 25.23.2.4.5.1 TC 971 AC 522 with MISC code "MITS CSIRC OTHER moved from 25.23.2.15.2.1.

(204) IRM 25.23.2.5 Statute Protection moved from 25.23.2.10.

(205) IRM 25.23.2.5.1 Statute Protection - Single Return moved from 25.23.2.10.1.

(206) IRM 25.23.2.5.2 Statute Protection - Multiple Returns - SSN owner’s return has not posted moved from 25.23.2.10.2.

(207) IRM 25.23.2.5.3 Statute Protection - Multiple Returns - SSN owner’s return has posted moved from 25.23.2.10.3.

(208) IRM 25.23.2.5.4 Barred Statutes moved from 25.23.2.10.4.

(209) IRM 25.23.2.6 Closing Identity Theft Issues moved from 25.23.2.16.

(210) IRM 25.23.2.6.1 Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 moved from 25.23.2.16.1.

(211) IRM 25.23.2.6.1.1 Systemic Actions Taken After TC 971 AC 501 Placed on Account Moved from 25.23.2.16.1.1.

(212) IRM 25.23.2.6.2 Manually Reversing TC 971 AC 501 moved from 25.23.2.16.2.

(213) IRM 25.23.2.6.3 Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506 moved from 25.23.2.16.3.

(214) IRM 25.23.2.6.4 Manually Reversing TC 971 AC 506 moved from 25.23.2.16.4.

(215) IRM 25.23.2.6.5 Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI) moved from 25.23.2.16.5.

(216) IRM 25.23.2.6.6 Reversing Unsupported Allegations of Identity Theft moved from 25.23.2.15.4.

(217) IRM 25.23.2.6.6.1 No Replies – TC 972 AC 522 NORPLY retitled and moved from 25.23.2.15.4.1.

(218) IRM 25.23.2.6.6.2 No Identity Theft Determinations (NOIDT) – TC 972 AC 522 NOIDT retitled and moved from 25.23.2.15.4.2.

(219) IRM 25.23.2.6.6.3 Identity Theft Claims Submitted by Individuals Who Do Not Appear to be the Victim retitled and moved from 25.23.2.15.1.1.

(220) IRM 25.23.2.6.7 TC 971 AC 522 PNDCLM/UNWORK/IRSID - Incorrect Tax Year moved from 25.23.2.15.3.

(221) IRM 25.23.2.7 IMF Identity Theft Worked by Functions Outside Accounts Management IDTVA and subsections moved from 25.23.2.19.

(222) IRM 25.23.2.8 Miscellaneous Identity Theft Indicators and subsections moved from 25.23.2.17.

(223) IRM 25.23.2.8.4 Locking Decedent Accounts - TC 971 AC 524 added information about UPC 147 RC 4 and SPC 9 and moved from 25.23.2.17.4.

(224) IRM 25.23.2.8.5 Employment-related Identity Theft – TC 971 AC 525 rewrote section, reduced OUO and moved from 25.23.2.17.5.

(225) IRM 25.23.9 Identity Protection Personal Identification Number (IP-PIN) moved section and subsections from 25.23.2.18.

(226) IRM 25.23.2.10 Get Transcript Incident moved section and subsections from 25.23.2.20.

(227) IRM 25.23.2.11 Get an Electronic Filing PIN Incident – Background moved section and subsections from 25.23.2.21.

(228) IRM 25.23.2.12 Free Application for Federal Student Aid (FAFSA) Incident moved section and subsection from 25.23.2.22.

(229) IRM 25.23.2.13 Incident Numbers CR20170421067 and LR20170421067 moved section from 25.23.2.23.

(230) IRM 25.23.2.14 Form 8821 Incident moved from 25.23.2.24.

(231) IRM 25.23.2.15 Identity Theft Liaison Responsibilities combined like subsections from 25.23.2.11 and 25.23.2.12 into one section.

(232) Exhibit 25.23.2-2 IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501 added additional date instructions

(233) Exhibit 25.23.2-4 IMF Only TC 971 AC 504 added letter and caution.

(234) Exhibit 25.23.2-8 IMF Only TC 971 AC 506 — IRS Determined Tax-Related Identity Theft Case Closure added link to REQ77 instructions.

(235) Exhibit 25.23.2-9 IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified updated MISC codes.

(236) Exhibit 25.23.2-11 IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522 added caution for future transaction dates.

(237) Exhibit 25.23.2-16 IDTVA IDRS Category Controls by Function retitled.

Effect on Other Documents

IRM 25.23.2 dated October 1, 2017 is superseded and includes the following IRM Procedural Updates: IPU 18U0076 issued 01-17-2018, IPU 18U0173 issued 01-25-2018, IPU 18U0264 issued 02-07-2018, IPU 18U0366 issued 02-28-2018, IPU 18U0719 issued 05-03-2018, IPU 18U0951 issued 06-15-2018 and IPU 18U1068 issued 07-17-2018

Audience

The provisions in this manual apply to all divisions, functional units, employees, and contractors within the IRS working identity theft cases.

Effective Date

(10-01-2018)

Karen A. Michaels
Director, Accounts Management
Wage and Investment Division

Program, Scope and Objectives

  1. Purpose: This manual details general case procedures for use in working identity theft inventory and providing assistance to victims of identity theft.

  2. Scope: The provisions in this manual apply to identity theft inventory.

  3. Audience: The primary users of the IRM are anyone working identity theft inventory and providing assistance to victims of identity theft.

  4. Policy Owner: The Director of Accounts Management.

Acronyms, Definitions and Background of the Identity Protection Program

  1. For a list of acronyms, see Exhibit 25.23.2-1, Acronyms and Definitions.

  2. For terms and definitions see IRM 25.23.1.1.1, Key Definitions, and Exhibit 25.23.1-1, Glossary of Identity Protection Terms and Definitions.

  3. For program background, see IRM 25.23.1.2, Background of the Identity Protection Program.

Related Internal Revenue Manuals (IRM) and other Reference Materials

  1. Throughout IRM 25.23.2,Identity Protection and Victim Assistance - General Case Processing, there are links/references to other IRMs for handling program specific issues.

  2. Employees/CSRs are responsible for familiarizing themselves with and utilizing all linked/referenced IRMs, as appropriate. This includes, but is not limited to sections, within the following:

    • IRM 2, Information Technology

    • IRM 3, Submission Processing

    • IRM 4, Examining Process

    • IRM 5, Collecting Process

    • IRM 10.5, Security, Privacy and Assurance

    • IRM 11.3, Disclosure of Official Information

    • IRM 13, Taxpayer Advocate Service

    • IRM 20, Penalty and Interest

    • IRM 21, Customer Account Services

    • IRM 25, Special Topics

    • IRM 25.23.12,. IMF Identity Theft Toll-Free Guidance

    In addition, this IRM links to these IDTVA function specific IRMs

    • IRM 25.23.1, Identity Protection and Victim Assistance - Policy Guidance

    • IRM 25.23.3, IMF Identity Protection Specialized Unit (IPSU) Paper

    • IRM 25.23.4, IDTVA Paper Process

    • IRM 25.23.9, BMF Identity Theft

    • IRM 25.23.10, Compliance Identity Theft Case Processing

    • IRM 25.23.11, Business Master File (BMF) Identity Theft Procedures for Accounts Management

    • IRM 25.24.1, Return Preparer Misconduct Victim Assistance - General Overview

    • IRM 25.24.2, Return Preparer Misconduct Victim Assistance Specialized Accounts Management Processing

Identity Theft - Overview

  1. The following subsections give a brief overview for communication with and casework for victims of identity theft

Taxpayer Interaction

  1. All taxpayers desire and expect courteous service. Taxpayers who have experienced identity theft are already victims, either emotionally or financially. Internal Revenue Service (IRS) employees need to be aware of that impact and handle the contact with an additional level of sensitivity and understanding. You must also guard against unauthorized disclosures and verify you are talking to the taxpayer or their authorized representative.

    Note:

    As stated in the Taxpayer Bill of Rights, Taxpayer Bill of Rights, taxpayers have the right to quality service, which means that they have the right to receive prompt, courteous and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

  2. Victims may suffer more than the loss of funds and ruination of their credit rating. Among other costs, victims may be subjected to potential loss of opportunities, such as those associated with employment and housing.

  3. You should educate the victims about the "one-stop-resource for victims of identity theft" ’, on the Federal Trade Commission’s website at Identity Theft at FTC. For more information see IRM 25.23.12.3. In addition to informing the victim of the FTC information, advise them to:

    • File Form 14039, Identity Theft Affidavit, with the IRS if the identity theft affects tax administration;

      Reminder:

      If the taxpayer previously submitted a Form 14039 to the IRS for a tax-related issue, there’s no need to submit another Form 14039 unless it is submitted as the result of a separate and different incident that will change the treatment of the case (i.e., non-tax to tax related).

      Reminder:

      Form 14039, Identity Theft Affidavit, can be mailed, faxed or sent electronically. Unsigned forms are acceptable.

    • Review Publication 5027, Identity Theft Information for Taxpayers; and

    • Review the IRS website at Identity Protection: Prevention, Detection and Victim Assistance.

    • Check with their state tax agency to see if there are additional steps they could take at the state level.

    For additional information, see IRM 25.23.12, IMF Identity Theft Toll-Free Guidance.

  4. Taxpayers meeting Taxpayer Advocate Service (TAS) Criteria 1-4 (economic burden), will be referred to TAS, see IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

    Caution:

    If IRS can provide relief or take a substantive action towards providing relief within 24 hours, do not send the case to TAS, unless the taxpayer requests TAS assistance and the case meets TAS criteria.


    Generally, IRS will refer TAS Criteria 5-7 cases to IDTVA-I (IPSU) for resolution. Refer to IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) – General Information, for the IDTVA-I criteria and exceptions to IDTVA-I processing.

Priority Handling of Identity Theft Cases

  1. All cases involving identity theft will receive priority treatment. This includes functions not located within the IDTVA framework. Refer to IRM 25.23.1.3, Wage and Investment - Accounts Management - Identity Protection, for additional information.

  2. The following forms will be treated as priority:

    • Form 14103, Identity Theft Assistance request (ITAR)

    • Form 14039, Identity Theft Affidavit

    • Form 14039 (SP), Identity Theft Affidavit (Spanish)

    • Form 14027-B, Identity Theft Case Referral

    • Form 4506-F, Request for Fraudulent Return

IDT Case Processing Time Frames

  1. To provide taxpayers who are victims of identity theft with a realistic expectation of the time frame for resolution of their cases, IDTVA is advising taxpayers to allow up to 180 days for resolution of all identity theft related cases. Most cases are resolved in 120 days or less, however some are more complex and can take as much as 180 days or more to resolve.

  2. The 180 days will generally be calculated from the received date of the taxpayer’s identity theft claim. Thorough IDRS/AMS research is required to identify the received date of the taxpayer’s valid claim (TPRQ/SPC1, IDT1/IDS1, TPPI, etc.) to begin calculating the time frame for your case.

    Note:

    For CP36I cases, the 180 day time frame begins with the issuance of the CP01S (located on TXMOD TC 971 AC 804 MISC CP001S-SPC8).

    IF THEN
    Claim is not available for review or is missing a date stamp Begin the 180 day calculation from the earliest issuance date of the:
    • Letter 5073C

    • Notice CP 01S or Notice CP 701S

    CP 36I cases The 180 day time frame begins with the issuance of the CP01S
    IRS identified ID theft The 180 day time frame begins on the date the case was recognized as identity theft (case controlled or converted to an identity theft category code)

    Reminder:

    A TC 971 AC 522 with one of the following Tax Administration Source Codes may be present when the taxpayer initiates a claim alleging identity theft for a specific tax year. See IRM 25.23.2.14, Identity Theft Claims - Overview.

    Tax Administration Source Codes
    UNWORK
    INCOME
    INCMUL
    MULTFL
    NOFR
    OTHER
  3. Use the following table to calculate the 180 day time frame:

    If the taxpayer Then the 180 day identity theft time frame must be calculated from:
    Has filed a loose Form 14039, Identity Theft Affidavit, (or other acceptable documentation as defined in IRM 25.23.2.14, Identity Theft Claims - Overview).

    Note:

    To determine if the taxpayer filed a loose claim, generally there will be either an open IDT1/IDS1, IDT4, IDT9/IDS9, or IDIs, etc. control. If available, view the scanned or attached documents with the related CIS case to determine if the case involves the filing of identity theft information.

    The IDRS received date of the control associated with the Form 14039 (or other acceptable documentation as defined in IRM 25.23.2.14 Identity Theft Claims - Overview.
    Attached the Form 14039 to their tax return that resulted in a CP 36I. The 180 day time frame begins with the issuance of the CP01S
    Submitted information to a function other than Accounts Management (ex: TPPI). The IDRS received date of the control associated with the information (ex: TPPI).
  4. Be empathetic to the taxpayer's issue. Assure the taxpayer that the IRS is firmly committed to working with them to resolve their identity theft issues. Cases such as theirs require complete and thorough research to provide them with a status update and to make correct determination for case resolution.

  5. Apologize to the taxpayer for the length of time required to resolve their issue. Explain that identity theft is complex in nature and constantly changing. Suggested language is:

    I apologize for the length of time it is taking to resolve your case. Identity theft is a challenging and ever changing issue and the IRS is firmly committed to working with victims like you to resolve tax-related identity theft cases. Most cases are resolved in 120 days or less, however some are more complex and can take as much as 180 days or more to resolve. The issues involved are complex and require complete and thorough research to resolve. Due to these complexities, resolution time for these cases exceed our typical processing times for resolution of return or account issues.

    If the taxpayer Then state And, if necessary, close your explanation with:
    Is claiming to be experiencing an economic burden/hardship (TAS Criteria 1-4). You will be referring them to the Taxpayer Advocate Service for immediate attention. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines. Again, I apologize for the inconvenience and ask for your patience as we work to resolve your identity theft case.
    Is waiting to hear about an identity theft related tax issue previously submitted. Please allow us 180 days from the time we received your claim or your return to properly address your concerns. If your case is not resolved during that time, you will receive an interim letter advising you of the status of your case.

    Note:

    Normal ITAR procedures apply if the 180 day time frame has passed and an interim letter was not provided to the taxpayer. IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) - General Information.

    Called before and a shorter time frame was communicated to them. Please allow us up to 180 days from the time we received your claim or your return to properly address your concerns. Most cases are resolved in 120 days or less, however some are more complex and can take as much as 180 days or more to resolve. If your case is not resolved during that time, you will receive an interim letter advising you of the status of your case.

    Note:

    Normal ITAR procedures apply if the 180 day time frame has passed and an interim letter was not provided to the taxpayer. See IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) - General Information.

    Inquires about the upcoming filing season. They must continue to file their tax return while their identify theft claim is under review. They may be able to e-file or may have to file a paper tax return as an alternative. Advise there may be delays in the processing time frame.
    Is not aware of the identity theft guidance available. General identity theft guidance in IRM 25.23.12.3, Identity Theft Telephone General Guidance.

Identity Theft Claims – General Guidelines

  1. Form 14039, Identity Theft Affidavit, is used to report both tax-related and non-tax-related identity theft issues. The affidavit is also available in Spanish; Form 14039 SP. Form 14039 retention will follow case retention procedures of the function working the case.

    1. Taxpayers should be advised to submit a claim using Form 14039 when they allege they are victims of tax-related identity theft.

    2. While the taxpayer is welcome to file a Form 14039 for non-tax related issues, do not solicit submission of the form. Instead, see IRM 25.23.2.2.1, Taxpayer Interaction.

    Note:

    In situations where the taxpayer initially asserts identity theft and provides an IDT claim and/or additional information at the same time, mark the account with one TC 971 AC 522 reflecting receipt of the claim using the Tax Administration Source Code UNWORK.

  2. Identity theft claims and/or additional information can be accepted from the taxpayer, third party or someone who has power of attorney for the taxpayer (e.g., Form 2848, Power of Attorney and Declaration of Representative).

  3. Taxpayer claims may cover more than one tax year. The taxpayer does not need to submit a separate claim for each year affected by identity theft.

  4. Form 14039 can be submitted by either mail or fax following the instructions provided on the second page of the Form 14039. For example:

    If the taxpayer alleges tax-related identity theft AND Then advise the taxpayer to complete Form 14039 AND
    The taxpayer was unable to file his/her return electronically because the primary and/or secondary SSN was misused Attach to the back of his/her paper return and submit all to the IRS location where he/she normally files.
    The taxpayer already filed a paper return Submit to the IRS location where he/she normally files.
    The taxpayer is responding to a letter or notice he/she received Submit with a copy of the notice or letter to the address contained in the notice or letter.

    Note:

    Form 14039 no longer requires the submission of additional information/documentation.

  5. The individual receiving an identity theft claim as defined in IRM Exhibit 25.23.1-1 will acknowledge receipt within 30 days of the IRS received date.

    Exception:

    IDTVA will acknowledge IDT Claims received in Compliance within 30 days of receipt from Compliance.

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    No acknowledgement letter is necessary if you will resolve the case within 30 days. The closing letter will serve as an acknowledgement in that case.

    Caution:

    Exercise caution when acknowledging receipt of the claim by mail. The address on Form 14039 may be different from the address on ENMOD.

    Note:

    Taxpayer notification does not apply to employees securing claims or documentation face to face from the taxpayer.

    Note:

    An acknowledgement notice will generate systemically when paper returns are processed with SPC 8 or S.

  6. After receipt of the taxpayer's claim/allegation, IRS will need to research the case to verify the taxpayer's claim is valid. Input TC 971 AC 522 UNWORK for each year affected, if none exists on the account, unless you are closing the case with an AC 501 or AC 506 on the same day.

    Note:

    TC 971 AC 522 will generate systemically when paper returns are processed with SPC 8 or S or when tax-related loose forms are scanned to CIS.

    Exception:

    If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post.

    See IRM .3.5 (2), When to Request Additional Information to Support an Allegation of Identity Theft, for more information. If no acknowledgement letter has been sent, correspond to acknowledge receipt of the taxpayers claim, unless you are closing the case with an AC 501 or AC 506 on the same day. Send the appropriate closing letter, instead.

Assessing the Scope of the Taxpayer’s Issues

  1. Taxpayers may initially come to IRS regarding a current year refund. Some taxpayers may not be aware that other tax modules have also been affected by identity theft.

  2. Upon receipt/assignment of an identity theft case, an initial cursory review must be performed to identify all taxpayers and all taxpayer issues. Identifying issues at the beginning of the case provides a higher level of customer service and reduces the potential for problems to go unresolved.

    Note:

    A taxpayer may file a claim of identity theft that covers multiple tax years. Each year MUST be evaluated based upon the facts and circumstances for that year.

  3. Special attention should be given to cases that by their nature indicate a high potential for multiple year involvement. Although the following examples are not all inclusive, taxpayers who do not have a filing requirement are more susceptible to being targeted. This includes elderly, disabled and/or under-aged.

    Example:

    A taxpayer's only income is Supplemental Security Income (SSI) paid by the Social Security Administration. A proposed reduction in SSI benefits due to an IRS levy has prompted the taxpayer to contact IRS and file a Form 14039, Identity Theft Affidavit, indicating his SSI was levied for a 2010 tax liability. Furthermore, the taxpayer states that they are permanently disabled and have not worked since 2007. Account review indicates returns filed for 2009, 2010, 2011, and 2012.

    Example:

    A duplicate filing condition involves one return showing low wages, a filing status of single, and no dependents claimed. The other return shows a filing status of married filing joint (MFJ) with dependents claimed. Our records show that the taxpayer is 17 years old. While it is possible for a 17 year old to file a MFJ return claiming dependents, the very nature of this case should cause the employee working the case to look at prior years. In our example, the prior years show the MFJ couple has been filing for years under the SSN. Refer to your relevant operational IRM(s) for the appropriate action to be taken on the prior years.

    Note:

    It is understood that multiple year involvement may not surface until a later phase in the processing of the case. Once multiple year involvement is determined, all issues MUST be addressed prior to case closure.

Addressing All Taxpayer Issues
  1. IRS is committed to providing taxpayers who have experienced identity theft with an additional level of sensitivity and understanding. From the taxpayer’s perspective, his/her account encompasses all his/her tax returns.

  2. Employees assigned an identity theft case will treat the identity theft victim’s account as a whole, resolving all account issues.

  3. Identity theft cases can be complex and involve multiple functions. Not all employees have the system access or delegated authority to take certain actions needed to completely resolve the taxpayer's issues.

  4. In situations where you have multiple controls with another function, you must contact that functional employee or liaison. If there are multiple controls within IDTVA groups, refer to IRM 25.23.4.5.7, Case Transfer Within IDTVA, and Exhibit 25.23.4-8, Identity Theft Multiple Control Decision Document, for additional information. See IRM 25.23.4.5.1, IDTVA Work Types, for more information.

  5. When identity theft issues involve multiple tax years or multiple taxpayers that may or may not be assigned or active (for example, “active” referring to a tax year with a balance due), every effort must still be made to ensure all issues are addressed and resolved. An IDRS control base must be opened for all tax years impacted by identity theft. IDTVA functions, see IRM 25.23.4.3.1.1, CIS Case Controls, for more information.

  6. To ensure taxpayers issues are not overlooked, the IDTVA has a multi-tier approach to determine where, and by whom, a case must be worked::

    1. Internal IDTVA Transfer: There may be situations when a case will be transferred to another function within IDTVA for complete end to end resolution. Refer to IRM 25.23.4.5.7, Case Transfer within IDTVA.

    2. External Transfer: There may be situations when a case will be transferred to another function outside IDTVA for complete end to end resolution. For example: RICS, Field Operations, etc.

  7. If during research of an account, a previously closed, but unresolved tax related identity theft issue is identified and no open controls are present, then immediate action must be taken to create an IDT case for assignment and resolution. See IRM 25.23.2.15.1, Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU), to create a referral to IDTVA-I.

Identity Theft Case Controls

  1. All confirmed identity theft cases MUST be controlled. The case controls will remain in effect until all issues are resolved and the taxpayer is notified of actions taken. IDTVA employees will utilize the information provided in Exhibit -16, IDRS Category Controls by Function, to control identity theft cases.

    Note:

    Refer to specific IRM guidance to ensure you are following your function's established methods for controlling identity theft cases.

Required Case and History Notes

  1. Throughout this IRM, and its chapters, there will be required case and history notes for Integrated Data Retrieval System (IDRS), Correspondence Imaging System (CIS), and/or Accounts Management Services (AMS) as it relates to the status of an identity theft case.

  2. All actions taken on taxpayer accounts will be documented on CIS, AMS and IDRS (CIS actions systemically post a note on AMS). In addition, there may be functional specific systems that will require documentation of case actions and determinations.

    Note:

    Cases worked through CIS will automatically add a history item to AMS.

  3. Case documentation will contain sufficient information to allow other employees to easily determine what actions were taken and what further actions are required to resolve the case. Accurate documentation promotes quality, prevents duplication of efforts by other employees, and enables phone assistors to provide accurate updates to phone inquiries.

  4. Case documentation must include sufficient information to support the determination and describe actions taken to resolve the case. When applicable, the following information should be included:

    Note:

    CIS case notes can contain up to 500 characters if more space is needed, create additional case notes.

    • Case determination and information used to justify the determination. When documenting IRPTR, research may be necessary to provide specific payer document information.

      Example:

      Based on IRPTR data TC 150 determined to be bad. TC 150 will be nullified.

      Example:

      TRDBV and IRPTR researched. Case determined to be bad/good. Account will be adjusted to the taxpayer’s TC 976 return.

    • Document any forms forwarded to another area (e.g. Form 9409, Form 14394, Form 2859, etc.).

      Note:

      See IRM 25.23.4.5.6.1, Collection Activity – Form 14394, and IRM 25.23.4.5.6.2, Collection Activity – Form 13794 Additional Actions Required - Lien. See IRM 25.23.4.14.7, Form 9409 Procedures – IRS/SSA Wage Worksheet, for additional information.

    • Document any case referrals to another function (e.g. cases referred to Exam, DITA, Appeals, etc.).

  5. If the AMS or CIS system is down, then narratives and/or case notes will not be required when the case is worked. The narratives and/or case notes will be input when the system is available. Do not close the case until all actions have been completed.

Identity Theft Research

  1. Research must be performed and documented prior to reaching a final determination of identity theft. Research using Command Codes (CC) ENMOD, IMFOL, RTVUE, NAMES, INOLE, DUPOL, FFINQ, REINF, and IRPTR.

    Caution:

    Consult your functional section of IRM 25.23,Special Topics, Identity Protection and Victim Assistance, for research requirements when resolving specific inventory types as the following list is not all inclusive.

    Reminder:

    Inadequate authentication of the identity of a caller could result in an unauthorized disclosure of return or return information. Refer to:
    IRM 11.3.2.4.1, Individuals
    IRM 11.3.2.4.1.2, Identity Theft and Access to Information Returns
    IRM 21.1.3.2.3, Required Taxpayer Authentication
    IRM 21.1.3.2.4, Additional Taxpayer Authentication
    IRM 21.2.3.5.8, Transcripts and Identity Theft

  2. Review all returns for the year(s) involved (including returns filed at other sites AND electronic filed returns).

  3. Compare all claims and return information for:
    •Name
    •Social Security Number
    •Address
    •Occupation
    •Exemptions
    •Signatures (except for e-filed returns when a signature is unavailable)
    •Similar tax data
    •Forms W-2, etc.
    •Marital status changes
    •Tax return preparer
    Direct Deposit accounts

    Note:

    See IRM 25.23.4.5.3Required Research for Mixed Entity and IDT Cases, and IRM 25.23.4.5.3.1Additional Actions Required by All, for IDTVA research requirements.

  4. Search returns, schedules, and forms for a different TIN. Research spouse and dependent information whenever available.

    Note:

    Research Real-Time System (RTS) in addition to IDRS research of CCs for Individual Tax Identification Numbers (ITIN). See IRM 3.21.263.9.1.2, Accessing and Logging onto ITIN RTS and IRM 3.21.263.9.4, Researching the ITIN RTS.

  5. Research the TIN (valid and invalid) to determine if there was a mixed entity or scrambled case in prior years, and to locate any possible cross-reference TIN.

    1. A mixed entity is an inadvertent use of another taxpayer’s TIN. This often occurs between family members. Research of Forms W-2 or previous returns can usually locate a different valid TIN for each taxpayer.

    2. A true scrambled SSN case occurs when the Social Security Administration mistakenly assigns the same SSN to two different people. NUMIDENT will show different entries for name, date of birth, place of birth, and/or parents’ names for the SSN owner.

      Note:

      See IRM 21.6.2, Adjusting TIN-Related Problems, and IRM 25.23.4.9 Mixed Entity Procedures, if your research indicates that the case may be a mixed entity or a scrambled SSN instead of identity theft.

  6. Search entity modules for indications of identity theft such as identity theft claims attached to the return or a previously posted TC 971 with Action Code (AC) 5XX.

  7. Utilize IAT Tools- refer to functional IRMs for mandatory IAT tools and to Exhibit 21.2.2-2, Accounts Management Mandated IAT Tools, for additional information.

When to Request Additional Information to Support an Allegation of Identity Theft

  1. Whether a case begins as IRS identified or based on a taxpayer self-identifying as a victim, additional information may be required. If we can’t resolve the account using internal information and/or information already provided by the taxpayer, request additional information. Taxpayer information to substantiate identity theft may include:

    1. Authentication of Identity - a copy of a current, valid form of identification (examples include a driver’s license, state identification card, social security card, or passport).

      Reminder:

      Any current US federal or state government issued identification presented MUST be signed by the taxpayer (or Legal Guardian if a minor).

      Exception:

      Minor’s Social Security cards should NOT be signed.

      Note:

      IRS no longer accepts Puerto Rican birth certificates issued before July 1, 2010, due to new laws by the Government of Puerto Rico. Taxpayers with birth certificates issued before this date must get new documentation from the Puerto Rico Vital Statistics Record Office.

    2. Evidence of Identity Theft - Form 14039, Identity Theft Affidavit.

      Note:

      Form 14039 should only be requested when the taxpayer has not previously submitted the form or when the submitted form is illegible.

    3. Payor documents, such as Forms W-2 or 1099, and utility bills, deeds or other proof of residency.

  2. Advise the taxpayer to enlarge photocopies, if necessary, so all information and pictures are clearly visible. If taxpayers do not provide additional information when requested, proceed with case resolution assuming the taxpayer is not an identity theft victim.

  3. The business unit/function that is assigned the identity theft case or issued the notice/letter relating to the identity theft must follow their functional procedures for soliciting additional information.

  4. Before requesting additional information, review the taxpayer's account (ENMOD/IMFOLE) to determine if a TC 971 (AC 501, 504, 505, 506, or 522) identity theft indicator exists and the related tax years. Previously submitted taxpayer information or case information may allow you to make an internal determination without further taxpayer contact. For example:

    1. TC 971 AC 501 - Taxpayer initiated tax-related identity theft incident

    2. TC 971 AC 504 - Miscellaneous codes indicating taxpayer initiated non-tax-related identity theft incident: ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M

    3. TC 971 AC 505 -PGLD inputs TC 971 AC 505 on an account even when an identity theft indicator code (AC 501, 504, or 506) is present on the account.

      Note:

      For more information about this indicator, refer to IRM 25.23.2.8.2, IRS Data Loss Breaches - TC 971 AC 505

    4. TC 971 AC 506 - IRS identified tax-related identity theft incident

    5. TC 971 AC 522 - with any of the following Administration Source Codes present: INCOME, MULTFL, INCMUL, NOFR, OTHER, NODCRQ, IRSID or UNWORK

      Note:

      This excludes accounts marked with a TC 971 AC 522 reflecting “PPDS” as the BOD, “OPIP” as the Program, and “OTHER” as the Tax Administration Code

  5. Review AMS history to assist in determining if the scanned documents were initially presented in person. For taxpayers who present their documents in the TAC, determine if the Form 14039 or police report is annotated in the upper right corner with an “S”. See (2) of IRM 21.3.4.29.1, Tax Return Related Identity Theft Issues. If the “S” is present, then the TAC employee reviewed and verified the documents presented and that they were valid. If the “S” is not present, then the TAC employee was unable to verify the taxpayer is the correct taxpayer.

    Reminder:

    If sufficient internal information is present, do NOT request the taxpayer submit or resubmit a claim. However, if sufficient information is not available and/or more than 45 days has passed since the taxpayer mailed their information, request the taxpayer to resubmit their claim/information and annotate AMS.

    Note:

    If a TC 971 AC 522 WI SP PNDCLM is present, request the original return. Additional identity theft information will be attached to the return.

  6. Additional information can be accepted from the taxpayer, third party or someone who has power of attorney for the taxpayer (e.g., Form 2848, Power of Attorney and Declaration of Representative).

When to Update the Victim's Address

  1. When a return posts to an account as a TC 150, the address is updated systemically to the address on that return. Consequently, when a return filed by a non-TIN owner posts to an account as a TC 150, the address on ENMOD is updated to the address on that return. Therefore, it is important to make timely entity corrections to prevent the issuance of correspondence or refunds to the wrong address. Check IDRS for pending address changes.

  2. Taxpayers may request a change of address using a Form 8822, IMF Change of Address Request by correspondence, or by phone through oral statement. Refer to IRM 3.13.5.50 Form 8822, IMF Change of Address Request, and IRM 21.1.3.20 Oral Statement Authority, for additional information.

  3. After confirming the person you are working with is the SSN owner, per IRM 25.23.2.3.4, Identity Theft Research, you will need to verify that the address posted on ENMOD/IMFOLE/BMFOLE is the correct address. Correct the address when appropriate. Refer to IRM 21.2.4.3.5, Address Change Correction. Correcting the address as early as possible may prevent disclosure of taxpayer information.

    Exception:

    Updating the address on controlled identity theft cases does not apply to telephone assistors or Field Assistance employees. Addresses are updated by the assigned employees only after research is completed, an SSN owner determination made and the case resolved. Refer to IRM 25.23.12.5.1, Telephone Inquiries Regarding Tax-Related IDTVA Cases., IRM 21.3.4.11.2, Taxpayer Requests for Address Change, and IRM 21.1.3.20, Oral Statement Authority for additional information.

    Exception:

    Oral Statement Authority does not apply if the current address is a Service Center Address. Advise callers to submit requests for address changes using Form 8822 or by correspondence (as long as the request contains the same information as the Form 8822). See (6) and (7) below for guidance.

    Caution:

    Use a posting delay code as needed when updating the address and inputting account adjustments at the same time. The address change must post first, unless it would prematurely release an S- freeze and cause an erroneous refund

    Note:

    The submission of Form 14039, Identity Theft Affidavit, by a claimant is not proof of identity theft and address changes should not be based solely on receipt of this form. Form 14039, Identity Theft Affidavit, should be used in conjunction with other key information to make decisions related to verifying taxpayer information. Refer to IRM 25.23.2.3.4, Identity Theft Research, for additional information.

  4. Change the address on MF to the new address (line 7) of Form 8822, Change of Address, if the taxpayer provides proof of identity document or other key information.

  5. The taxpayer can request a change of address in writing as long as the request contains the same information as the Form 8822, Change of Address:

    • The new address

    • The taxpayer’s full name

    • The taxpayer’s signature, or the signature of an authorized representative

    • The old address

    • Social security number, employer identification number, or individual taxpayer identification number

    Per Rev. Proc. 2010-16, a valid request for a change of address must be a clear and concise request for the purpose of changing the address. Filers of a joint return must provide both names, social security numbers, and signatures. Individuals who have changed their last name should provide the last name shown on the most recently filed return and the new last name. Verify the old address through research and input the change of address via CC ENMOD/ENREQ.

  6. If the current address shown on CC ENMOD/IMFOLE is a Service Center/Campus Address, research for a prior address (prior tax return data, IRP documentation, CIS documentation or history) to verify the prior address from the taxpayer's Form 8822, correspondence, etc.

    1. If prior address research shows an address that matches, change the taxpayer’s address.

    2. If prior address research shows an address (other than on a fraudulent return) that does not match the prior address on taxpayer’s Form 8822 or correspondence, contact the taxpayer using 104C letter or other appropriate letter for a correct address.

  7. If there is no prior tax return data for the taxpayer and/or no IRP documentation, or if IRP document shows an "in care of " name and different address, and CIS does not show any document or history to verify the prior address, and taxpayer sent a signed, government issued ID, check for a current address on the ID document.

    1. If the taxpayer’s signed, government issued ID has an address that matches the current address entered on the taxpayer’s Form 8822 or in the taxpayer's correspondence, change the taxpayer's address.

    2. If the signed, government issued ID does not have an address or has a different address than given on the Form 8822 or in the correspondence, contact the taxpayer for a correct prior/current address either by telephone or using the 104C letter or other appropriate letter

Marking Taxpayer Accounts When Accepting Identity Theft Claims

  1. Upon receipt of a claim, mark the taxpayer's account using Command Code (CC) REQ77 initiated from ENMOD to input a TC 971 AC 522 UNWORK.

    Reminder:

    If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 PNDCLM, UNWORK or IRSID, do not input this code at closing. Close the identity theft issue with TC 971 AC 501 or AC 506, as appropriate

    Reminder:

    Identity Theft indicators AC 501, AC 504, AC 505, AC 506, AC 522, AC 523, AC 524 and AC 525 never expire. In addition, once a taxpayer is in the IP-PIN population, they cannot be removed.

  2. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 5XX on the oldest allowable year and leave an AMS history and/or a history on ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: H,AC5XX-2007 and input the TC 971 AC 5XX on the oldest allowable year allowed by programming.

  3. After receipt of the taxpayer's claim, the employee assigned will need to research the case to verify the taxpayer's claim and determine the appropriate action(s) needed. If it is later determined that identity theft did not occur, reverse the TC 971 AC 522 (refer to Exhibit 25.23.2-11, TC 972 AC 522 - Reversal of the TC 971 AC 522). Follow your IRM procedures to notify the taxpayer of your determination.

  4. A systemic notification letter is sent once a valid case is resolved and the TC 971 AC 501 is input.

    Reminder:

    The CP01 is only issued once in a 3-year period. If a TC 971 AC 501 posted on the account within the last three years, a closing letter is required.

Taxpayer Advocate Service

  1. The Taxpayer Advocate Service (TAS) provides assistance to taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that the IRS has not resolved through normal channels or believe that an IRS system or procedure is not working as it should.

  2. Refer taxpayers to TAS when the contact meets TAS criteria and you can’t resolve the taxpayer’s issue the same day Refer to IRM 13.1.7.2, TAS Case Criteria. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. See IRM 13.1.7.4, Same Day Resolution by Operations. In cases where the taxpayer states he has a hardship, use sufficient probing to determine that a manual refund is required before referring to TAS. For additional information refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

  3. Taxpayers may request assistance during or after enforcement action. The request must meet criteria as listed in IRM 13.1.7.2, TAS Case Criteria. The identifying function will prepare Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order).

    Note:

    Refer to IRM 13.1.16.11.3, Criteria 5-7 Identity Theft Cases Eligible for Referral to Identity Protection Specialized Unit (IPSU), and IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) - General Information, for additional information.

Electronic Products Service and Support (EPSS) Disabled Accounts

  1. Compromised on-line accounts are disabled, preventing SSN owners from accessing the account. EPSS employees will flag the account with a TC 971 AC 522 EPSS DISABL.

    Caution:

    Prior to January 2015, the acronym NODCRQ was used when the taxpayer reports a second incident of identity theft and taxpayer information was previously provided.

  2. Taxpayers are instructed by EPSS to file Form 14039 to secure an IP-PIN to protect their compromised SSNs.

    1. If the Form 14039 is received, due to a disabled account, input a TC 971 AC 522 UNWORK, if none already exists.

    2. Input TC 971 AC 506 WI AM OTHER to move the taxpayer into the CP01A population.
      If not tax-related issue: Issue a 4403C letter Paragraph C and I (insert the language below in paragraph I): "We have verified your claim of identity theft and placed an identity theft indicator on your account so we can monitor activity and help prevent future fraud. No further action is needed on your part. Please continue to file all federal tax returns. To further protect you, we will issue you an IP-PIN by mail in December. You will need an identity protection PIN to file your tax returns in the future" ."

      Caution:

      If the TC 971 AC 506 is not input prior to cycle 47 of the processing year (meaning an IP-PIN/CP01A will not generate for the upcoming filing season) do not include the last two sentences above "To further protect you, we will issue you an IP-PIN by mail in December as no IP-PIN will be issued. You will need an identity protection PIN to file your tax returns in the future" .


      If tax-related issue: Notify the taxpayer (victim), via Letter 4674C. Use the following paragraphs: A, B through I, as appropriate, J with fill-in Publication 5027, Identity Theft Information for Taxpayers, provides helpful information to identity theft victims. You can access it at www.irs.gov. We adjusted your tax account to show the correct return information or removed the incorrect return from your account. You should continue to file all federal tax returns normally., K through W, as appropriate and any additional paragraphs necessary to inform the taxpayer the actions you took.

      Caution:

      Do NOT include any paragraphs referencing on-line access, as these account are blocked.

      . This victim notification letter will include: 1. Information about identity theft prevention. 2. Information about identity theft related resources. 3. Information about the identity theft indicator placed on his or her account. 4. Provide information about the IP-PIN.

IDT Indicators – Tax Related

  1. Identity Theft Action Codes (AC) are used to Identify various types of identity theft cases. In the following subsections we will define the Tax-Related ACs. For other Miscellaneous identity theft ACs, see IRM 25.23.2.8 Miscellaneous Identity Theft Indicators.

Tracking and Reporting Identity Theft Cases - Identity Theft Indicators

  1. IPSO developed identity theft indicators as a method to track identity theft cases from the time a taxpayer or the IRS initially suspects identity theft through case closure. Identity Theft Action Codes (AC) are used with TC 971 to mark the entity modules of accounts on which identity theft is a factor. Identity theft can be tax-related or non-tax-related. Identity theft cases can be found in virtually any BOD/Function inventory. The identity theft indicators are as follows:

    Action Code Description Used by IRM Guidance located in: IP-PIN/Delivery Method
    501 Identity Theft Case Closure (tax-related) - Taxpayer Initiated. All functions IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501. Yes/CP01A
    504
    Non-tax-related identity theft - TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M are reserved for use by IDTVA-I employees.
    Tax-related identity Theft - TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL
    Non-tax-related identity theft - IDTVA-I ONLY for additional information.
    Tax-related identity Theft - as designated.
    Non-tax-related identity theft: IRM 25.23.2.8.1.1, TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M
    Tax-related identity Theft: IRM 25.23.2.8.1.2, TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL

    TC 971 AC 504 with Miscellaneous Field Codes other than SPCL1, and EAFAIL are eligible to Opt-in to the IP-PIN program.
     
    505 IRS loss of PII -IRS identified, taxpayer not required to provide required ID theft claim PGLD Only IRM 25.23.2.8.2, IRS Data Loss Breaches - TC 971 AC 505 Opt-in.

    Exception:

    If the taxpayer’s on-line account is blocked, because of the nature of the breach, they need to file a Form 14039 for an IP-PIN and could have IP-PIN issued via CP01A.

    506 IRS determined identity theft - Taxpayer is not required to provide ID theft claim, unless requested. All Functions IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506. TC 971 AC 506 with MISC code field of: WI-ITVAA-XXXXX, WI-ITVAC-XXXXX, WI-AM- XXXXX, XX-XX-OMMGB, and WI-PRP-OTHER1 are automatically entered in the IP-PIN program and will receive CP 01A.
    TC 971 AC 506 with any other MISC code other than those shown above are eligible to Opt-in to the IP-PIN program.

    Exception:

    TC 971 AC 506 with MISC Code CI OTHER or a MISC code with Tax Administration Source of OMM are not eligible for an IP-PIN.

    522 Provides the status of an identity theft issue:
    • Taxpayer initial allegation

    • IRS initial suspicion

    • Receipt of valid taxpayer claim and (if requested) additional information.

    All functions IRM 25.23.2.4.4.1, IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522, IRM 25.23.2.4.5, IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID, and IRM 25.23.2.3, Identity Theft Claims - General Guidelines. No
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Reserved No
    524 Locking Decedent Accounts IPSO and Return Integrity and Compliance Services (RICS) TPP. IRM 25.23.2.8.4, Locking Decedent Accounts - TC 971 AC 524. No
    525 Employment-related Identity Theft Systemic Input ONLY IRM 25.23.2.8.5, Employment-related Identity Theft – TC 971 AC 525. Opt-in
  2. The Service utilizes a variety of methods to ensure all identity theft related inventory is tracked within specific inventories.

  3. The indicators used on identity theft cases provide the Service with data reflecting the case status (the list below is not all-inclusive). The specific indicators are discussed at length later in this IRM.

    • New taxpayer claims of identity theft

    • Newly identified suspicions of identity theft (no final determination of identity theft)

    • Resolved identity theft case

Tracking IMF Tax-Related Identity Theft Inventory

  1. In situations where the taxpayer makes an allegation of identity theft or when the IRS initially suspects that identity theft may have occurred, IRS functions will apply an identity theft indicator. The identity theft tracking indicator alerts others that a claim of identity theft has been reported. Refer to IRM 25.23.2.4.4, Initial Allegation or Suspicion of Identity Theft - Identity Theft Indicators, for additional information regarding the appropriate tracking indicator.

    Note:

    The application of the TC 971 AC 522 PNDCLM or UNWORK does not always equate to an inventory point of count. Refer to your functional IRM regarding the process of inventory management for Identity Theft cases.

  2. In most instances, for taxpayer initiated claims of identity theft, the case MUST be moved into identity theft inventory once the taxpayer has submitted a claim of identity theft and (if requested) provided additional information. This provides victims with a treatment stream for case resolution specific to identity theft. For additional information regarding identity theft documentation, refer to IRM 25.23.2.3, Identity Theft Claims - General Guidelines.

  3. If after the account has been marked with an IMF Identity Theft Indicator, the employee determines identity theft did not occur, the IMF ID theft tracking indicator will be reversed by the employee assigned. This removes the case from identity theft inventory. See Exhibit 25.23.2-11, IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522, for additional information. All other non-identity theft issues will be resolved using normal procedures.

Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft

  1. Identity thieves sometimes use the PII of individuals to establish fictitious businesses. Many times, the fictitious business is used to support the filing of fraudulent IMF returns.

  2. If the inquiry is received by phone, obtain all the facts of the case including the EIN (if the caller can provide it, or if it can be found through basic account research), the business name and any other important information. For example:

    • What notice the taxpayer received.

    • If there is a current or former relationship to the business.

    • What has been affected by the BMF ID theft. (lien, levy, etc.)

  3. Employees will verify the IMF taxpayer’s association with the EIN and determine if potential BMF ID theft exists prior to marking the IMF account with a tracking marker.

    Example:

    Jane Smith calls an IMF related toll-free line to report she believes she is a victim of business-related identity theft and she is concerned her personal identity has been stolen. She received an IRS notice demanding payment for unpaid employment taxes on Jane's Flowers located in Florida (Jane is located in the Northwest). Jane has never owned a business and never resided in Florida. Jane provides the CSR with her SSN and the EIN on the notice.

  4. Research to determine if there is a potential BMF ID theft issue MUST be completed prior to marking an account and referring or transferring the case/call to another area. Researching the account will allow for the employee to determine if the case should be referred to the BMF ID theft inventory or moved/transferred into the regular BMF inventory following normal procedures.

    • Research CC BMFOLE (the business entity module) to determine if the taxpayer’s SSN is associated with the EIN. BMFOLE contains a XREF SSN FIELD that will provide the associated SSN. The format for CC BMFOLE is BMFOLEXX-XXXXXXX

    • Research BMFOLI to look at filing and payment history. Returns filed with no payments may indicate fraudulent filings.

    • Research CC IRPTRI to review all Forms W-2 filed under a given EIN. Reviewing the individual accounts associated with the W-2s may assist in determining if the case needs to be moved into the BMF ID theft inventory. IMF accounts with ID theft indicators or IVO involvement may support the BMF ID theft claim. CC format is IRPTRIXX-XXXXXXX4YYYY21 (4=valid EIN, 21=Forms W-2)

    • Research the IMF account to see if the EIN has been used on any IMF filings (i.e. Schedules C or H). If it is determined the EIN has been used for purposes other than intended this may support the BMF ID theft claim.

  5. Once the research is completed and it is determined there is potential ID theft, research CC IMFOLE to determine if there is an existing TC 971 AC 504 SPCL2. If there is currently no ID TC 971 AC 504 SPCL2 marker, the SSN entity must be marked using CC REQ77 with a TC 971 AC 504 SPCL2 as indicated in IRM 25.23.2.8, Miscellaneous Identity Theft Indicators. Include the EIN, if available, in the XREF TIN field on CC REQ77.

    Reminder:

    The AC 504 will NOT accept an SSN in the XREF TIN field.

    This will record ID theft of the individual’s information for fraudulent BMF usage. Refer to Exhibit 25.23.2-4, IMF Only TC 971 AC 504, for additional information.

  6. If the inquiry is received by phone, obtain all of the facts of the case including the EIN, business name and any other important information. For example:

    • What notice the taxpayer received.

    • If there is a current or former relationship to the business.

    • What has been affected by the BMF ID theft. (lien, levy, etc.)

    Document all of this information on the Form 14566 BMF Identity Theft Referral. Do not advise the taxpayer to submit a Form 14039 or Form 14039-B Business Identity Theft Affidavit. Send the completed Form 14566 by secure email to the AM BMF ID Theft liaison (Both W&I and SB will send to the W&I AM liaison). See BMF ID Theft Liaisons. Advise the caller that the case needs to be referred to the business identity theft function.

  7. The following will assist in determining to which liaison the referral should be sent:

    • CAWR assessment- TC 290 assessment in blocking series 55- CC TXMOD

    • Exam assessment- TC 300 assessment- CC TXMOD

    • 6020b assessment - TXMOD RCC “4” and literal “6020b” at the end of the TC 150 assessment-CC TXMOD

    • SFR assessment- SFR literal at the end to the TC 150 assessment - CC TXMOD

    • Field Exam- Cases have a Primary Business Code 201 through 215, 301 through 309, and 315- CC AMDISA

    • Field Collection- SC status 26

    • ACS- SC status 22

    • AM (BMF)- Any case that does not meet other account criteria

  8. Document AMS/CIS, if available, to reflect the referral sent, the suspicious EIN and how the taxpayer became aware of the problem.

    Example:

    Referral emailed to BMF ID theft CAWR Liaison. TP received notice of CAWR assessment. TP states they had no involvement with EIN XX-XXXXXXX. (Include any other information employee deems important)

    Caution:

    If the case needs to be reassigned on AMS/CIS and an EIN is not available, reassign using all zeros for the EIN. Do not put the taxpayer’s SSN in EIN format.

  9. If the taxpayer filed a Form 14039 or other written documentation to advise the IRS of ID theft relating to a business/BMF issue, the receiving function will send the appropriate acknowledgment letter. The function should also follow the same procedures for phone inquiries above to research the account, prepare a referral to a BMF IDT liaison, input a TC 971 AC 504 SPCL2, and update AMS/CIS.

  10. If there is no indication of potential BMF Identity theft and there is a TC 971 AC 504 on the account, reverse the TC 971 AC 504 SPCL2 on the taxpayer's SSN. Refer to Exhibit 25.23.2-5, IMF Only TC 972 AC 504 — Reversal of TC 971 AC 504, for additional information. Route the case per normal procedures.

Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators

  1. An initial allegation or suspicion of identity theft can be recognized by either the taxpayer or the service. IPSO developed tracking indicators to mark taxpayer accounts when the identity theft incident is initially alleged or suspected.

  2. Three Tax Administration Source codes were developed to track cases as they are initially identified:

    • TC 971 AC 522 PNDCLM - for taxpayer initiated allegations of identity theft.

    • TC 971 AC 522 UNWORK - for submitted identity theft claims

    • TC 971 AC 522 IRSID - for IRS initiated suspicions of identity theft.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Prior to marking an account with TC 971 AC 522 PNDCLM, UNWORK or IRSID, research ENMOD/IMFOLE to ensure the questionable tax year has not already been marked. If the coding already exists, do not input a second, matching code for the same tax year.

    Note:

    When the identity theft victim is the secondary SSN on a joint account, the identity theft indicator is input on the secondary SSN. Identity theft indicators are not input on the primary SSN in these instances. If both primary and secondary taxpayers are victims, place the indicator on both SSNs.

  4. Taxpayer entity modules can accommodate a limited number of transactions. Due to the entity limitations, we must also limit the number of TC 971 AC 522s applied to the account.

  5. The secondary date on command code REQ77 will reflect the tax year of the incident. Apply a TC 971 AC 522 only once per tax year affected by identity theft. If there is an existing TC 971 AC 522 PNDCLM, UNWORK or IRSID for the same tax year, do not apply a second, matching code to that tax year. If there is an existing TC 971 AC 522 PNDCLM, UNWORK or IRSID refer to the table below:

    Note:

    A PNDCLM code means the taxpayer alleged identity theft. The code UNWORK means a claim has been received.

    IF THEN
    Your BOD or Function differs from that of the existing TC 971 AC 522 PNDCLM, NODCRQ, or IRSID for the same tax year

    Example:

    There is an existing TC 971 AC 522 PNDCLM input by WI FA for 2012. You are located in SBSE Compliance and have a TY 2012 issue.

    Reminder:

    Beginning in 2015, NODCRQ is used in conjunction with BOD PPDS and Program OPIP (TC 971 AC 522 PPDS OPIP NODCRQ) to identify/track on-line accounts disabled due to identity theft.
    Prior to 2015, NODCRQ was applied when the taxpayer claimed identity theft and there was a posted TC 971 AC 501/ 506.

    Apply TC 971 AC 522 UNWORK to indicate a claim has been received.
    For additional information regarding multiple tax years, refer to IRM 25.23.2.4.4.1, IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522.
    You would have selected a different Tax Administration Code than was selected by the initial function receiving the additional information.

    Example:

    There is a TC 971 AC 522 IRSID for TY 2013 and you would have input an UNWORK

    Apply TC 971 AC 522 UNWORK to indicate a claim has been received.
    For additional information regarding multiple tax years, refer to IRM 25.23.2.4.4.1, IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522.
    There is an existing unreversed TC 971 AC 522 PNDCLM or IRSID and you determine the identity theft affected an additional tax year.

    Example:

    There is a TC 971 AC 522 PNDCLM for TY 2012 and you determine that TY 2011 was also affected by ID theft.

    Apply TC 971 AC 522 UNWORK to the additional year(s) affected. In this example, apply a TC 971 AC 522 UNWORK to both TY 2011 and TY 2012.
    There is an existing TC 971 AC 522 PNDCLM for a tax year not affected by identity theft.

    Example:

    The taxpayer claims identity theft for TY 2013 and there is an existing TC 971 AC 522 PNDCLM for 2012 and you have determined TY 2012 was NOT affected by identity theft.

    For additional information refer to IRM 25.23.2.6.6.2, Invalid Identity Theft Determinations TC 972 AC 522 NOIDT. In this example, you will reverse the TC 971 AC 522 PNDCLM for tax year 2012.

    Caution:

    Duplicate AC 522's will unpost and auto-delete.

  6. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 522 on the oldest allowable year and leave an AMS history and\or ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: "H,AC522-2007" and input the TC 971 AC 522 on the earliest year allowed by programming.

  7. Do not apply the AC 522 PNDCLM, UNWORK or IRSID to the SSN of a taxpayer when an ITIN taxpayer reports the misuse of the SSN. See IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501.

    Example:

    In the course of performing an audit, the employee identifies an ITIN taxpayer has been working under the SSN belonging to another individual. The SSN owner is unaware of the misuse of his SSN. Do not apply the AC 522 to the commonly used SSN.

  8. All identity theft affected accounts will require resolution and the application of a closing identity theft marker (TC 971 AC 501 or TC 971 AC 506), as applicable.

IMF Identity Theft- Taxpayer Initiated Allegations of Identity Theft - TC 971 AC 522
  1. In situations where the taxpayer or the taxpayer's authorized representative as defined in IRM 21.3.7.5, Form 2848, Power of Attorney and Declaration of Representative and Form 8821, Taxpayer Information Authorization Overview, makes an allegation of identity theft, employees will mark the entity account, using Command Code (CC) REQ77 initiated from ENMOD to input a TC 971 AC 522 reflecting a Tax Administration Source Code PNDCLM, if none already exists. See Exhibit 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft Case Status (Initial Claim/Suspicion), for additional information.

    Reminder:

    If the taxpayer is alleging identity theft on more than one tax year, input AC 522 PNDCLM for each tax year, but only if a TC 971 AC 522 PNDCLM does not already exist for the specific year. Prior to marking an account with a TC 971 AC 522 PNDCLM, UNWORK or IRSID, research ENMOD/IMFOLE to determine if the questionable tax year has been marked this will ensure you are not inputting duplicate transactions. There will be only one PNDCLM, UNWORK or IRSID per tax year.

    Example:

    Taxpayer calls the IRS on March 13, 2017, regarding a CP 2000 notice for 2015. He states he did not earn the income reported nor did he reside in the state in which the income was earned. He suspects he may be a victim of identity theft. He has not experienced a previous identity theft issue. He is concerned that someone may be using his SSN without his permission for employment purposes and just recently, he received a notice from SSA cutting his benefits due to income reported for 2016 in which the taxpayer had no income. The employee reviews the account and finds no prior identity theft indicators have been applied. The employee will input a TC 971 AC 522 PNDCLM initiating an identity theft case for both the 2015 and 2016 tax years.

  2. If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 PNDCLM/UNWORK, do not input this code at closing. Close the identity theft issue with TC 971 AC 50X, as appropriate. Applying TC 971 AC 522 PNDCLM/UNWORK at case closure serves no purpose.

    Exception:

    If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post.

  3. When a taxpayer asserts tax-related identity theft, request the taxpayer provide an identity theft claim. See IRM 25.23.2.3, Identity Theft Claims - General Guidelines. When that claim is received, the employee will input a TC 971 AC 522 UNWORK.

    Caution:

    When a taxpayer files a return with an identity theft claim attached, Submission Processing (SP) Code and Edit employees will edit an SPC 8 on the paper return. The SPC 8 is transcribed and generates a TC 971 AC 522 WI SP PNDCLM. Beginning in 2014, the SPC 8 will generate an acknowledgement letter advising the taxpayer that the Service received his/her claim. The TC 971 AC 522 input to reflect a valid Identity Theft claim was received is not input until the claim has been reviewed by the assigned function. Refer to IRM 25.23.2.3, Identity Theft Claims - General Guidelines.

  4. If an employee receives a call from a taxpayer, stating his efile return was rejected because of a previously used Primary or Secondary TIN, the employee can attempt to stop the refund. The window to stop a refund is very small, sometimes only two or three days. The CSR must first do high risk disclosure and then follow IRM 21.4.1.5.7.1 Direct Deposit of Refunds., Input TC 971 AC 522 PNDCLM if not already on the account. See IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - Identity Theft Indicators, for codes and additional information. For information on stopping the refund, see IRM 21.4.1.5.10, Refund Intercept CC NOREF with Definer ‘P’.

  5. There will be only one TC 971 AC 522 PNDCLM per tax year on the entity module.

    Example:

    Taxpayer calls IRS on May 15, 2017, claiming to be a victim of identity theft for a 2015 audit assessment. The employee requests the taxpayer respond to the examination with an identity theft claim and applies the TC 971 522 PNDCLM to the 2015 account. On September 12, 2017, the taxpayer calls IRS claiming to be a victim of identity theft for the same 2015 audit assessment. The CSR reviews the account and finds there is no open IDRS controls and there is an un-reversed 522 PNDCLM. The CSR will follow normal IRM procedures for resolving the call. The CSR will not input another 522 PNDCLM as one is already present on the entity.

  6. Do not input more than one TC 971 AC 522 PNDCLM per tax year on the module. If, however the taxpayer is reporting identity theft and the account reflects a reversed AC 522 PNDCLM, a new TC 971 AC 522 PNDCLM will be appropriate.

    Example:

    A taxpayer alleging identity theft contacted IRS on February 2, 2017 regarding tax year 2015. The employee requested an Identity Theft claim from the taxpayer. On May 1, 2017, the employee input a TC 972 AC 522 NORPLY as the taxpayer did not provide the claim and\or any additional information requested. On June 3, 2017, the taxpayer provided the claim and\or requested information. The employee input a TC 971 AC 522 UNWORK to reflect receipt of a claim.

Mass Input of Identity Theft Tracking Indicators
  1. Identity theft tracking indicators are used to mark both tax-related and non-tax-related incidents of identity theft. The indicators help IRS in identifying open and closed cases. Generally, indicators are input to taxpayer accounts using IDRS. However, under certain conditions, the service may consider marking many accounts with specific identity theft indicators at one time by posting the indicator directly to masterfile.

  2. Functions considering this path for marking accounts MUST first contact IPSO Technical Staff via e-mail for IPSO concurrence. The e-mail must contain the following:

    • A detailed explanation of why the indicator is being used to mass flag accounts.

    • The number of accounts being marked with an identity theft indicator.

    • The method by which taxpayers will be notified that an indicator was placed on their account and an example of that notification letter or notice.

    • A draft of the function’s IRM guidance, IPU, or SERP alert detailing the marking of the accounts and the date the guidance will be available.

    • An agreement with the unpostable functions that will resolve subsequent unpostable conditions resulting from the mass indicator inputs.


    Direct the E-mail to the following mailbox: ipp@irs.gov.

  3. Any efforts to post identity theft indicators directly to masterfile MUST use the formats established in Exhibit 25.23.2-2 through Exhibit 25.23.2-15. Not following the specifications for input will negatively affect the ability to reverse or take corrective actions. Failure to adhere to established formats will impede or prevent the business rules tied to the indicators from functioning as intended.

IRS Initiated Suspicion of Identity Theft - TC 971 AC 522 IRSID

  1. In situations where the IRS suspects identity theft may have occurred, employees will mark the entity account, using Command Code (CC) REQ77 initiated from ENMOD to input a TC 971 AC 522 reflecting a Tax Administration Source Code IRSID, and the tax year of the identity theft incident if no TC 971 AC 522 PNDCLM, UNWORK or IRSID already exists. See Exhibit 25.23.2-10, IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion ), for additional information.

    Reminder:

    If you suspect identity theft on more than one tax year, input TC 971 AC 522 IRSID for each tax year affected by identity theft, as appropriate. If a TC 971 AC 522 PNDCLM (Taxpayer self identified) UNWORK (claim received) or IRSID already exists for that tax year, do not apply another.

  2. Apply the TC 971 AC 522 IRSID when you initially suspect ID theft may have occurred. Post filing Compliance programs should not enter TC 971 AC 522 IRSID until after the taxpayer has had an opportunity to respond to the IRS notice/letter, unless there is clear evidence that leads you to suspect identity theft.

    Reminder:

    If there is already an unreversed TC 971 AC 522 IRSID, UNWORK or PNDCLM for the affected tax year, do NOT input TC 971 AC 522 IRSID.

  3. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 5XX on the oldest allowable year and leave an AMS history and\or ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: H,AC5XX-2007 and input the TC 971 AC 5XX on the oldest allowable year allowed by programming).

  4. Do not input more than one TC 971 AC 522 IRSID per tax year on the entity module.

    Example:

    Accounts Management, while working a duplicate filing condition for the 2015 tax year, suspects an identity theft incident may have occurred. The TC 976 return appears to have been filed by the SSN owner at the address of record for many years. The TC 150 reflects income not supported by IRPTR, suspicious dependents and a different address from prior year filings. The CSR will review ENMOD/IMFOLE for an unreversed TC 971 PNDCLM, UNWORK or IRSID. If none are present, the CSR will input a TC 971 AC 522 IRSID initiating an identity theft case and follow their IRM procedures to resolve their case. If ID theft is suspected in an additional tax year, a TC 971 AC 522 IRSID will be applied for each tax year suspected of involving identity theft.

  5. IPSO considers an account with a TC 971 AC 522 IRSID and no subsequent TC 971 AC 506 (indicating a completely resolved account) an open identity theft case. Subsequently, if the case is deemed NOT to be identity theft, see IRM 25.23.2.6.6, Reversing Unsupported Allegations of Identity Theft, IRM 25.23.2.6.6.1, Invalid Identity Theft Determinations TC 972 AC 522 NORPLY, and IRM 25.23.2.6.6.2 Invalid Identity Theft Determinations TC 972 AC NOIDT.

  6. If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 IRSID, do not input this code at closing. Close the identity theft issue with TC 971 AC 50X, as appropriate

    Exception:

    If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post

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    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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    Reminder:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Statute Protection

  1. A statute of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax related issues.

  2. The Internal Revenue Code (IRC) requires that the IRS will assess, refund, credit, and collect taxes within specific time limits. These limits are known as the Statutes of Limitations. When they expire, the IRS can no longer assess additional tax, allow a claim for refund by the taxpayer, or take collection action. The determination of Statute expiration differs for Assessment, Refund, and Collection.

  3. Follow IRM 25.6.1, Statute of Limitations Processes and Procedures, to ensure all statutes are protected.

  4. A case is considered imminent when a tax increase is required and it is within 90 days of the TC 150, TC 976/TC 977 or unprocessed return Assessment Statute Expiration Date.

  5. To prevent a barred statute assessment, a quick assessment is required when:

    1. The ASED on the CN account will expire in 90 days or less or

    2. The ASED on the IRSN account will expire in 180 days or less.

  6. When a quick assessment is needed, complete the following:

    • Edit the return with the correct tax.

    • Determine the amount of tax currently on the account.

    • Calculate the amount of the tax increase.

    • Complete the Form 2859, Request for Quick or Prompt Assessment.

    Note:

    A quick assessment must be approved by the manager.

  7. It is important to verify the statute dates on the TC 150 return and any unprocessed returns.

Statute Protection - Single Return

  1. Review IDRS to verify no TC 976/977 transactions are on account and review the case documents to verify no unnumbered unprocessed returns were received from the taxpayer.

  2. If there is no TC 976/977 or unprocessed return, no action is required to move the TC 150 for statute protection.

  3. If there is a TC 976/977 or unprocessed return, follow IRM 25.23.2.5.2, Statute Protection - Multiple Returns - SSN owner’s return not posted or IRM 25.23.2.5.3, Statute Protection - Multiple Returns - SSN owner’s return has posted procedures below.

Statute Protection - Multiple Returns - SSN owner’s return has not posted

  1. Determine the IRS received date of the good taxpayer’s return. If it was filed on or before April 15 of the normal filing year, it is considered timely filed.

    Exception:

    If an extension was filed, the taxpayer has until the extended due date.

  2. Determine the ASED of the good taxpayer’s return – add 3 years to the received date.

  3. If the ASED is within 180 days of expiring, it is considered a STATUTE return.

    Example:

    2015 return is due 04/15/2016. The ASED is 04/15/2019. The case should be considered a statute case as of November 15, 2018.

  4. Prepare Form 2859, Request for Quick or Prompt Assessment, annotate at the top of the form "ID Theft Statute Year" .

    1. The Form 2859 will be prepared for the correct amount to protect any tax increase and credit decreases to the account based on the good taxpayer return. Input the assessment amount as a TC 290 on Form 2859. Input the following in the Remarks section: "Agreed Assessment. Do not bill the taxpayer. Send no notices to the taxpayer. The TC 150 is nullified or will be moved to an IRSN with Form 12810, Account Transfer Request Checklist" .

    2. Do not include any tax decrease or credit increase adjustments to the account.

    3. In Part B, Requestor Information, input the name and campus preparing the document.

  5. Prepare Form 3210, Document Transmittal. Fax the Form 3210, Form 2859 and the statute return to the applicable Accounting office.

  6. Update the control base to the employee requesting the quick assessment and use activity code "QUICK2859" .

  7. Keep a copy of the SSN owner’s return and Form 2859 with documentation for monitoring.

  8. Do not make any adjustments to credit transactions on the account.

  9. Credit transfers to excess funds can be completed after the ASED.

Statute Protection - Multiple Returns - SSN owner’s return has posted

  1. Determine IRS received date of the good taxpayer’s return. If it was filed on or before April 15 of the normal filing year, it is considered timely filed.

  2. Determine the ASED of the good taxpayer’s return - add 3 years to the received date.

  3. If the ASED is within 180 days of expiring, it is considered a STATUTE return.

    Example:

    2015 return is due 04/15/2016. The ASED is 04/15/2019. The case must be considered a statute case as of November 15, 2018.

  4. Compare the account adjustments to determine if all assessments match the good return figures.

  5. If an adjustment is required to increase tax or decrease credits, prepare Form 2859, Request for Quick or Prompt Assessment, annotate at the top of the form "ID Theft Statute Year" .

    1. The Form 2859 will be prepared for the correct amount to protect any tax increase and credit decreases to the account based on the good taxpayer’s return. Input the assessment amount as a TC 290 on Form 2859. Input the following in the Remarks section: "Agreed Assessment. Do not bill the taxpayer. Send no notices to the taxpayer. The TC 150 is nullified or will be moved to an IRSN with Form 12810, Account Transfer Request Checklist" .

    2. Do not include any tax decrease or credit increase adjustments to the account.

    3. In Part B, Requestor Information, input the name and campus preparing the document.

  6. Prepare Form 3210, Document Transmittal. Fax both forms and the statute return to the applicable Accounting office.

  7. Update the control base to the employee requesting the prompt assessment and use activity code "Quick2859" .

  8. Keep a copy of the SSN owner’s return and Form 2859 with documentation for monitoring.

  9. Do not make any adjustments to credit transactions on the account.

  10. Credit transfers to excess funds can be completed after the ASED.

Barred Statutes

  1. When working IDT cases and it is determined an ASED has expired and an assessment cannot be made, the case must be written up as a barred assessment.

  2. Cases that are barred with ID Theft involvement must be resolved by an ID Theft employee. After the actions have posted to the account, the case will be referred to the local statute function for the completion of Form 9355, Barred Statute Report.

  3. The Statute Function will:

    1. Prepare original and two copies of Form 9355.

    2. Assign the case a control number.

    3. Establish an IDRS control base using category "BARD". The category BARD cases must be processed within 99 calendar days of the case establishment date as stated in IRM 3.30.123.5.8(4), Statutes.

    4. Complete all remaining actions as required per IRM 25.6.1.13.2.6, Routing and Controlling Form 9355.

Closing Identity Theft Issues

  1. Prior to closing the identity theft case take the following actions: Actions include, but are not limited to:

    • Release notice or enforcement holds, as appropriate

    • Address all refund situations, as appropriate

    • Verify and correct the taxpayer's address, as appropriate

      Reminder:

      If the secondary taxpayer is determined to be a victim of identity theft, be sure to update the address on the secondary’s entity module

    • Refer issues identified during case closure analysis to another function, ONLY when you cannot resolve the case within your own function

    • Address balances due and restore Installment Agreements (IAs) and Currently Not Collectable (CNC) as appropriate

      Note:

      See IRM 25.23.4.5.6.1, Collection Activity – Form 14394 and IRM 25.23.4.5.6.2, Collection Activity – Form 13794 Additional Actions Required - Lien.

      Reminder:

      IDTVA-C functions Exam and AUR do not re-instate IA. F14394 will be sent back to IDTVA--C (ACSS) to re-instate.

    • Address offsets and restore credit elect, as appropriate

    • Adjust the account to the taxpayer's figures, and

    • Advise the taxpayer of actions taken

    Caution:

    The importance of updating the address prior to inputting the TC 971 AC 501/506 cannot be stressed enough. If the address is not updated appropriately, including an update for both the Primary and Secondary taxpayer’s entities, the victim notification letter will go to the wrong address. In addition, failure to follow the appropriate sequence could result in the Identity Protection Personal Identification Number (IP-PIN) being sent to the ID thief instead of the ID theft victim. Refer to IRM 25.23.2.9, Identity Protection Personal Identification Number (IP-PIN).

    Reminder:

    Use a post delay on other transactions when changing the taxpayer’s address.

    Reminder:

    Identity Theft indicators AC 501, AC 504, AC 505, AC 506, AC 522, AC 523, AC 524 and AC 525 never expire. In addition, once a taxpayer is in the IP-PIN population, they cannot be removed.

  2. The TC 971 AC 501/506 cannot be input until the taxpayer is no longer harmed by identity theft issues impacting tax administration. The TC 501/506 indicates all identity theft tax administration issues have been resolved from the taxpayer's perspective.

    Example:

    An identity thief's return posted to the victims 2015 account first. The victim was expecting a refund for 2015. In 2012, the victim was assessed by exam for underreporting income originating from the identity theft. The victim did not have a filing requirement in 2012. Prior to marking ENMOD with a TC 971 AC 501 for the 2012/2015 tax year, the employee assigned MUST:
    VERIFY- the victim's address has been verified and updated on ENMOD
    ADJUST- Input adjustments, as appropriate

  3. A case control must be maintained until the identity theft case is resolved.

  4. The employee assigned the case will close the identity theft issue by marking the account with either a TC 971 AC 501 for taxpayer initiated identity theft supported by taxpayer’s valid claim or a TC 971 AC 506 for IRS determined identity theft (no documentation required). These action codes (501 and 506) provide the taxpayer protection against future occurrences of identity theft.

    Reminder:

    If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 PNDCLM/UNWORK/IRSID, do not input this code at closing. Close the identity theft issue with TC 971 AC 50X, as appropriate

    Exception:

    If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 PNDCLM/UNWORK/IRSID so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post.

Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501

  1. To indicate resolution of a taxpayer initiated identity theft claim, mark the victim's account using Command Code (CC) REQ77 initiated from ENMOD, to input a TC 971 AC 501 reflecting an appropriate Tax Administration Source Code depending upon the facts and circumstances of the case along with the tax year of the identity theft incident. The AC 501 is applied to a taxpayer's account when all of the following occur:

    1. The identity theft incident was taxpayer initiated, or the identity theft incident was IRS determined but additional taxpayer information was required to resolve all issues.

    2. All corrective actions have been taken. This includes verifying and updating the taxpayer's address on ENMOD, as applicable.

      Caution:

      Marking the account with AC 501 prior to correcting the victim's address may result in the issuance of the victim notification letter to an incorrect address and may allow an identity thief's return to post while the legitimate taxpayer's return will unpost.

    3. There must be a tax-related impact to affect tax administration.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. Case Closure Analysis: Perform case closure analysis to ensure all identity theft related issues have been addressed and resolved. This includes all outstanding TC 971 AC 522s. Refer to IRM 25.23.2.6, Closing Identity Theft issues.

    5. Verify Taxpayer Address: Verifying and updating the taxpayer's address MUST be done before inputting the TC 971 AC 501.

      Reminder:

      Use a post delay on other transactions when changing the taxpayer’s address to prevent notices from generating to the identity thief.

    6. Follow functional case closing guidance, as appropriate.

    7. If the case involved an ITAR, notify IDTVA-I of closing actions taken.

  2. TC 971 AC 501 can be input by any business unit delegated the authority and programmed to use this code when closing identity theft issues.

    Note:

    For additional information on TC 971 AC 501 refer to Exhibit 25.23.2-2, IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related).

  3. If more than one year is affected by identity theft and resolved, the employee will enter the corresponding TC 971 AC 50X for each year.

    Reminder:

    If the TC 971 AC 501 is not input prior to cycle 47 of the processing year, an IP-PIN/CP01A will not generate for the upcoming filing season.

    Reminder:

    If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 PNDCLM/UNWORK/IRSID, do not input this code at closing. Close the identity theft issue with TC 971 AC 50X, as appropriate

    Exception:

    If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 PNDCLM/UNWORK so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post.

  4. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 501 on the oldest allowable year and leave an AMS history and/or ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: "H,AC501-2007" and input the TC 971 AC 501 on the oldest year allowed by programming.

Systemic Actions Taken After TC 971 AC 501 Placed on Account
  1. Notice CP 01,Identity Theft Claim Acknowledgment, is used for victim notification on identity theft issues closed with a TC 971 AC 501. CP 01 systemically generates two posting cycles after the TC 971 AC 501 is input, depending upon when the taxpayer's account adjustment is completed. The CP 01 is issued only once within a three year period.

    Note:

    See IRM 25.23.2.4.1, Tracking and Reporting Identity Theft Cases - Identity Theft Indicators, for details on when an IP-PIN will be issued and the method for issuance


    CP 01 contains the following information:

    1. Confirmation that any requested additional information was received and accepted

    2. Information about how the IRS will monitor the taxpayer's account and income tax returns

    3. Information about identity theft prevention and available identity theft-related resources

    Note:

    Letter 4445 C, Acknowledgement Notification, was previously used for victim notification for TC 971 AC 501s input through June 30, 2009. Letter 4445 C may be used in those instances where taxpayers indicate they never received Notice CP 01.

    Note:

    A Notice CP 01 is not applicable to, and does not systemically generate, when a TC 971 AC 506 is applied to a taxpayer's account.

  2. The taxpayer should continue to file tax returns each tax year, as appropriate.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. The presence and date of the TC 971 AC 501 on an account should be used as a data point, along with other key information, to make case-related decisions. The existence of the identity theft indicator should not supersede or replace existing procedures for case resolution.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Manually Reversing TC 971 AC 501

  1. In some instances, it may be necessary to manually reverse TC 971 AC 501. Reversal may be necessary because of any of the following reasons:

    1. TPRQ - The taxpayer requests reversal.

    2. IRSERR - There was a keying or internal error in the input of the TC 971 AC 501.

    3. FALSE - RESERVED

    4. IRSADM - The TC 971 AC 501 has an internally identified negative affect on the taxpayer. For example, a programming issue.

    5. OTHER - There are other reasonable circumstances not listed above.

    Note:

    Be sure to select the correct code. If codes a-d above are not applicable, use OTHER. Refer to Exhibit 25.23.2-3, IMF Only TC 972 AC 501 - Reversal of TC 971 AC 501, for additional information.

    Caution:

    If the year in question being reversed is older than the current calendar year minus 7 years, CC REQ77 will not accept the year. Document AMS or your case history to reflect identity theft did not actually occur in the year reflected on the taxpayer's entity. Leave a history item on ENMOD reflecting the actual tax year of the reversal.

  2. Actions needed prior to manually reversing an identity theft marker at the taxpayer’s request:

    1. If this is a telephonic request, be certain that you are speaking with the taxpayer. Inadequate authentication of the identity of a caller could result in an unauthorized disclosure of return or return information. Refer to IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication,.

    2. Ask probing questions to determine why the taxpayer is requesting indicator removal and document AMS, or the case history if you do not have access to AMS, with the taxpayer’s response. For example, can you provide the reason why you would like this protection removed from your account?

    3. Explain to the taxpayer the indicator will:
      Help prevent future identity theft incidents;
      Ensure any returns filed are reviewed for identity theft indications; and
      Include the issuance of an IP-PIN for as long as the indicator remains active.

      Reminder:

      Currently there is no avenue to remove a taxpayer from the IP-PIN population, even with the reversal of the AC 501.

    4. If the taxpayer insists on removal of the identity theft indicator after you have explained the benefits, review the account to determine if the identity theft issue is open in another function. If there is an open identity theft case, refer the case to that function using your normal referral procedures. Do not take actions on identity theft cases being worked by another function.

Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506

  1. To indicate resolution of an IRS determined identity theft case a TC 971 AC 506 is applied to a taxpayer's account when the incident affects tax administration. Such incidents can result from any of the following:

    • Phishing

    • Refund schemes

    • Verified false returns

    • Duplicate filing research

    • Certain unpostable returns

  2. Prior to marking the taxpayer's account with a TC 971 AC 506 the function MUST ensure all corrective actions have been taken which includes:

    1. Verifying and updating the taxpayer's address on ENMOD, as applicable.

      Caution:

      Marking the account with AC 506 prior to correcting the victim's address may result in negative consequences for the victim. Letters and notices regarding the IP-PIN may be directed to an incorrect address.

      Reminder:

      Use a post delay on other transactions when changing the taxpayer’s address to prevent notices from generating to the identity thief.

    2. Advising the taxpayer of actions taken.

    3. Issuing the taxpayer's correct refund.

    4. Adjusting the account to the taxpayer's figures.

  3. Marking an account with TC 971 AC 506 will not generate a notice to the taxpayer regarding the resolved identity theft issue. The function that inputs the TC 971 AC 506 will notify the taxpayer (victim), by letter, that someone may have attempted to use his or her SSN. This victim notification letter will include:

    • Information about identity theft prevention

    • Information about identity theft related resources

    • Information about the identity theft indicator placed on his or her account.

      Caution:

      If the TC 971 AC 506 is not input prior to cycle 47 of the processing year (meaning an IP-PIN/CP01A will not generate for the upcoming filing season) do not include the sentences "To further protect you, we will issue you an IP-PIN by mail in December as no IP-PIN will be issued. You will need an identity protection PIN to file your tax returns in the future" .

      Reminder:

      The IP-PIN will generate annually for as long as the indicator remains active. Currently there is no avenue to remove a taxpayer from the IP-PIN population, even with the reversal of the AC 506

      Reminder:

      If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 PNDCLM/UNWORK/IRSID, do not input this code at closing. Close the identity theft issue with TC 971 AC 50X, as appropriate

      Exception:

      If you have determined there was no tax-related identity theft (NOIDT), you must enter a TC 971 AC 522 IRSID so it can be reversed with a TC 972 AC 522 NOIDT. The TC 972 must be post-delayed one week to allow the TC 971 to post.

    Input of a TC 971 AC 506 does not generate a systemic notification to the taxpayer. To notify the taxpayer of actions taken to resolve identity theft issues, the Letter 4310 C or other appropriate letter may be used.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. In some instances, it may be necessary to manually reverse TC 971 AC 506. If reversal (TC 972 AC 506) is indicated, see Exhibit 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, Taxpayer Provided No or Incomplete Documents, for a description of reasons for the reversal.

  6. To indicate resolution of an IRS determined Identity Theft Case involving tax administration, mark the victim's account using Command Code (CC) REQ77 initiated from ENMOD to input a TC 971 AC 506 reflecting an appropriate Tax Administration Source Code depending upon the facts and circumstances of the case along with the tax year of the identity theft incident. The TC 971 AC 506 is applied to a taxpayer's account when all of the following occur:

    1. All corrective actions have been taken. This includes verifying and updating the taxpayer's address on ENMOD.

      Caution:

      If you do not have a valid address for the taxpayer, use the Service Center address to prevent an IP-PIN from going to incorrect taxpayer. Refer to IRM 3.13.5.64 Campus Address Used Only When Taxpayer Address is Unavailable.

    2. The taxpayer's identity theft issue affects tax administration.

    3. Perform case closure analysis to ensure all identity theft related issues have been addressed and resolved. This includes all outstanding TC 971 AC 522s. See IRM 25.23.2.6, Closing Identity Theft Issues.

    4. Review of the entity module does not indicate a prior TC 971 AC 506 for the same tax year. Generally, there will be only one TC 971 AC 506 per tax year. However, some automated systems are not programmed to look for an existing TC 971 AC 506 for a specified tax year, prior to applying a second indicator and in those instances, a second AC 506 may be applied to an account.

  7. The procedural guidance for your functional area must be followed as to when the TC 971 AC 506 should be input. Your procedural guidance, however, must adhere to the guidelines provided in this subsection.

  8. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 506 on the oldest allowable year and leave an AMS history and/or ENMOD history indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: "H,AC506-2007" and input the TC 971 AC 506 on the oldest year allowed by programming).

  9. Generally, there should be only one TC 971 AC 506 per tax year. However, some automated systems are not programmed to look for an existing TC 971 AC 506 for a specified tax year and in those instances, the automated system may have applied a second AC 506 to the account. While automated systems may apply a second Identity Theft indicator for a specific year, manual input should be limited to one AC 506 per tax year.

    Exception:

    Accounts that meet the criterion described in IRM 25.25.2.12, Special Procedures for Returns Previously Identified as Identity Theft Returns, where a good taxpayer return was received on an account formerly flagged with TC 971 AC 506 OMM may reflect more than one AC 506 of the same year. Refer to IRM 25.25.2.13, Identity Theft Scheme Criteria, for additional information.
    If you should receive Form 14039 and find the taxpayer’s entity for the years in question have already been flagged with AC 506, apply an AC 501 for the impacted tax years.

    Exception:

    Taxpayers involved in a Data Loss Breach will have an additional TC 971 AC 506 present on their account as indicated below. The application of the "TC 971 AC 506 WI AM OTHER" , ensures these taxpayers will receive a CP 01A providing them an IP-PIN. See IRM 25.23.2.210, Get Transcript Incident, for more information

Manually Reversing TC 971 AC 506

  1. In some instances, it may be necessary to manually reverse TC 971 AC 506. Reversal may be necessary because of any of the following reasons:

    1. TPRQ- The taxpayer requests reversal.

    2. IRSERR- There was a keying or internal error in the input of the TC 971 AC 506.

    3. FALSE-Reserved

    4. IRSADM- The TC 971 AC 506 has an internally identified negative affect on the taxpayer. For example, a programming issue.

    5. OTHER-There are other reasonable circumstances not listed above.

      Note:

      Be sure to select the correct code. If codes a-d above are not applicable, use OTHER.

    Caution:

    If the year in question being reversed is older than the current calendar year minus 7 years, CC REQ77 will not accept the year. Document AMS or your case history to reflect identity theft did not actually occur in the year reflected on the taxpayer's entity.

  2. Actions needed prior to manually reversing an identity theft marker at the taxpayer’s request:

    1. If this is a telephonic request, be certain that you are speaking with the taxpayer. Inadequate authentication of the identity of a caller could result in an unauthorized disclosure of return or return information. Refer to IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication.

    2. Ask probing questions to determine why the taxpayer is requesting Action Code removal and document AMS or the case history if you do not have access to AMS with the taxpayer’s response. For example, can you provide the reason why you would like this protection removed from your account?

  3. Explain to the taxpayer that the AC 506 will:
    Help prevent future identity theft incidents;
    Ensure any returns filed are reviewed for identity theft indications; and
    Include the issuance of an IP-PIN for as long as the IP-PIN indicator remains active.

  4. If the taxpayer insists on removal of the identity theft indicator after you have explained the benefits, review the account to determine if the identity theft issue is open in another function. If there is an open identity theft case, refer the case to that function using your normal referral procedures. Do not take actions on identity theft cases being worked by another function. If there is no open IDRS control, review the Miscellaneous Field Code to determine what function applied the AC 506. Refer the case using your normal procedures to that function. The function that applied the AC 506 will determine if the 506 will be reversed.

    Note:

    When referring a case to another function for AC 506 removal be sure to inform the taxpayer that the case is being referred to another function using your normal procedures for case referral.

Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI)

  1. Take these actions when a taxpayer submits a Form 14039 alleging identity theft and he/she does not have a filing requirement. If the Identity Theft allegation is confirmed and includes a tax module in Masterfile status 02 or 03, input a TC590 cc020. This action will remove the account from the TDI inventory. Continue to correct the account as needed. Conduct research to determine if any modules in status 02 or 03 should be closed because the taxpayer has no filing requirement.

    Example:

    A taxpayer alleges identity theft on a 2012 tax year stating he/she has no filing requirement. The allegation is confirmed and the 2012 account is cleaned up. However, the 2013 account is in Masterfile status 02 or 03 where a Tax Delinquency Inquiry (TDI) notice was issued. The caseworker researches account information for tax year 2013 and determines the taxpayer is not liable to file or the taxpayer states/verifies there is no filing requirement for tax year 2013. Inputting a TC590 cc020 on the 2013 account will remove the account from the TDI inventory.

  2. Take these actions when a taxpayer submits a Form 14039 alleging identity theft and he/she does not have a filing requirement, and there is a TC594 (indicating a joint return was filed with the spouse as primary). If the Identity Theft allegation is confirmed, input a TC592 to reverse the TC594, wait one cycle and input a TC590 cc020. This is necessary because IDRS CC FRM49 does not accept posting delay codes. This will prevent erroneous generation of TDI notices.

    Example:

    A Guam taxpayer was a victim of identity theft on a tax year 2012 Married Filing Joint (MFJ) tax return. The taxpayer was used as the secondary filer (spouse). The taxpayer does not have a U.S. filing requirement as he/she filed and paid all taxes to Guam. It appears when the fraudulent prior year return was backed off the account and the MFJ indicator (TC 594-84) was reversed (TC 592) on his/her account, within a few cycles a TDI erroneously generates requesting a return from the victim (who believes his/her account was resolved). A review of IRP on the affected accounts reflects all income was earned in Guam and no prior year returns were ever requested by TDI.

    Example:

    A taxpayer was a victim of identity theft on a tax year 2013 Married Filing Joint (MFJ) tax return. The taxpayer was listed as the secondary filer (spouse) and TC 594 posted to the victim’s 2013 tax module with a cross reference to the an erroneous SSN. To reverse the erroneous TC594, input transaction code 592, wait one week, then input TC590 cc020. The TC592 has to post prior to the TC590 or the account will be in TDI status.

  3. If an identity theft allegation is confirmed and includes a tax module in Masterfile status 02 or 03, take these actions when a taxpayer submits correspondence that includes an unprocessed return.

    Note:

    Use CC FRM49 with a block indicator of "BB" to generate block series 74 for all TC 594 and 599 transactions.

    If And Then
    1. Taxable return (return shows a tax liability before prepaid credits) 1.The Master File Status is ‘02’ 1. Input a TC 599 cc 094.
    2. Taxable return (return shows a tax liability before prepaid credits) 2.The Master File Status is ‘03’ 2. Input a TC 599 cc 044.
    3. Non-taxable return (Return shows no tax liability before prepaid credits) 3. The Master File Status is ‘02’ 3. Input a TC 599 cc 096
    4. Non-taxable return (Return shows no tax liability before prepaid credits) 4.The Master File Status is ‘03’ 4. Input a TC 599 cc 046

    Note:

    Refer to your functional IRM for instructions for the processing of the return or the routing of the return to Submission Processing. See IRM 5.19.2.4.1, Manual Creation of a Return Delinquency Module on IDRS, and Exhibit 5.19.2-6, Resolving Issues with Manual Created RD Modules on IDRS, for more information.

  4. If a tax year on the taxpayer’s claim is not an open module on IDRS:

    1. Execute FRM 49 per IRM 2.4.26.3(1b), Command Code FRM49. This will open the module on IDRS.

    2. Input TC 590 CC 020. This will prevent any subsequent erroneous TDI’s from generating.

Reversing Unsupported Allegations of Identity Theft

  1. There may be situations when it is necessary to reverse a pending identity theft claim (taxpayer allegation of identity theft).

  2. A pending identity theft claim is an account with an unreversed TC 971 AC 522 and no subsequent TC 971 AC 50X.

  3. The list below briefly describes the Miscellaneous Field Codes used when reversing unsupported identity theft claims (TC 971 AC 522):

    • NOIDT: In the course of resolving an identity theft issue, the employee assigned determines no identity theft occurred.

    • NORPLY: This code is used to close a suspended case when the taxpayer fails to provide the requested claim and\or additional information within the time specified by the employee assigned.

    • TPRQ: The taxpayer requests the 971 be reversed and has provided a reasonable basis for that request.

    • IRSERR: The 971 input was due to a typographical mistake or another internal mistake.

    • IRSADM: The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming glitch prevents returns from processing.

    • FALSE: Reserved - TBD

    • OTHER: The reason for the 971 reversal does not meet any of the above reason descriptions.

No Reply – TC 972 AC 522 NORPLY
  1. When taxpayers do not respond to a request for more information (NORPLY) consider their claim invalid.

  2. Use the following table to determine what actions to take if the taxpayer does not respond to the request for additional documents or information:

    If Then
    1. Non-IDTVA: There is not enough information in the taxpayer’s previously submitted correspondence to allow a referral to IDTVA. 1.
    • Use Command Code REQ77 initiated from ENMOD to input a TC 972 AC 522 reflecting a Tax Administration Source Code of NORPLY and the tax year of the identity theft incident.

      Exception:

      If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 IRSID/UNWORK\PNDCLM, you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NORPLY.

      Reminder:

      The TC 972 must be post-delayed one week to allow the TC 971 to post.

      See Exhibit 25.23.2-11, IMF Only TC 972 AC 522 – Reversal of TC 971 AC 522, for additional information.

    • Follow functional guidelines for additional processing instructions.

    2. IDTVA: There is not enough information in the taxpayer’s previously submitted correspondence to make an IDT determination. 2.
    • Send a closure letter. Include the following special paragraph or similar verbiage: "Since you did not respond to our request for additional information, we are unable to make an IDT determination and have closed your case. For further consideration, please provide us with the previously requested information. Until then, no further action will be taken and collection action will resume, if applicable" .

    • Use Command Code REQ77 initiated from ENMOD to input a TC 972 AC 522 reflecting a Tax Administration Source Code of NORPLY and the tax year of the identity theft incident.

      Exception:

      If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 IRSID/UNWORK\PNDCLM, you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NORPLY.

      Reminder:

      The TC 972 must be post-delayed one week to allow the TC 971 to post.

      See Exhibit 25.23.2-11, IMF Only TC 972 AC 522 – Reversal of TC 971 AC 522, for additional information.

    • Input a TC 472 to reverse the hold and resume the collection process, iIf there is a TC 470 that was input to freeze collection notices.

    • Prepare Form 14394, Identity Theft Collection Alert and route to IDTVA ACSS to resume collections actions, if there is a balance due on the alleged IDT tax year or any other year.

    • Input a TC 290.00 with reason code 139 to document the identity theft claim.

    3. IDTVA: The taxpayer did not respond to a request for a return or for information to make a return complete. 3.
    • Follow all normal IDT case procedures for resolving the account, including nullifying any returns that were determined to have been fraudulently filed and adjusting any applicable credits

    • IDTVA-C only: Follow functional guidelines if the case contains compliance issues.

    • Follow functional guidelines to determine how to handle missing or incomplete returns. See IRM 25.23.4.17.10, Form 2209 Instructions, 25.23.4.5.5, Documentation Requests, Return Processing and Missing Information (IDTVA – A), or IRM 25.23.10.7, Unprocessed/Secured Returns – General (IDTVA –C), for additional instruction as applicable.

  3. IDTVA – Compliance only - If the taxpayer provides falsified or altered documentation, when returning the case to the Compliance function, suggest the case be referred to the Campus Fraud Coordinator (CFC) as a potential fraud referral.

  4. The following is an example of a case determined to be a no reply (NORPLY):

    Example:

    On February 14, 2017, the taxpayer contacted SBSE Exam regarding a 2015 statutory notice of deficiency. The taxpayer claimed that he MUST be a victim of identity theft as someone else claimed his dependents. The exam employee input a TC 971 AC 522 PNDCLM to flag the account as potential identity theft and requested the taxpayer provide a valid claim and\or additional information within the next 30 days. The case was put into suspense for 45 days. The taxpayer did not respond. On April 18, 2017, the exam employee reversed the pending identity theft claim using TC 972 AC 522 NORPLY and continued to work the case using normal exam procedures.

    Reminder:

    If the taxpayer does not provide a valid claim and\or additional information when requested, proceed with case resolution assuming the taxpayer is not an identity theft victim.

    Caution:

    If the year in question being reversed is older than the current calendar year minus 7 years, CC REQ77 will not accept the year. Document AMS or your case history if you do not have AMS access to reflect identity theft did not actually occur in the year reflected on the taxpayer's entity.

No Identity Theft (NOIDT) Determinations – TC 972 AC 522 NOIDT
  1. When the information taxpayers submit does not substantiate their claim of IDT, consider their claim NOIDT.

  2. Whenever an IDT claim is determined to be invalid take the following actions:

    • Send a closure letter notifying the taxpayer of the decision. Include the following suggested wording along with any specific reasons for the determination: "We reviewed your Identity Theft Affidavit and additional information. We found no indication that identity theft affected the tax periods above." Also, include language regarding his/her right to dispute the no IDT decision (i.e.; providing additional information).

      Note:

      If the taxpayer has a balance due after the IDT issue is determined to be invalid, include language indicating that collection activities will continue.

    • Use Command Code REQ77 initiated from ENMOD to input a TC 972 AC 522 reflecting a Tax Administration Source Code of NOIDT and the tax year of the identity theft incident. See Exhibit 25.23.2-11, IMF Only TC 972 AC 522 – Reversal of TC 971 AC 522, for additional information.

      Exception:

      If, at the time of case closure you find the Entity module has not been flagged with a TC 971 AC 522 IRSID/UNWORK\PNDCLM, you must enter a TC 971 AC 522 UNWORK so it can be reversed with a TC 972 AC 522 NOIDT.

      Reminder:

      The TC 972 must be post-delayed one week to allow the TC 971 to post.

    • Input a TC 472 to reverse the hold and resume the collection process and prepare Form 14394, Identity Theft Collection Alert, and route to IDTVA ACSS for processing, if there is a TC 470 that was input to freeze collection notices.

    • Input a TC 290.00 with reason code 139 to document the identity theft claim. Input hold code (HC) 4 on accounts with credit balances originally frozen by Examination.

      Exception:

      Input HC 3 if sending a separate closing letter to avoid multiple letters to the taxpayer.

    • Cases containing Compliance Issues - Follow functional guidelines to determine if the case needs to be returned to the function that made the referral (ex. Open AUR cases.) Notify them of the NOIDT determination.

      Reminder:

      If you make a NOIDT determination on a case that had Exam involvement, the documentation attached to the claim may be enough for a possible audit reconsideration for exam. See IRM 25.23.10.12.4. IDTVA - C Exam Identity Theft Case Processing for more information.

  3. If the IDT claim is determined NOIDT but there are allegations of return preparer misconduct, provide information on filing a claim (Form 14157, Return Preparer Complaint, or Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit and required documents when sending the IDT determination letter. Input TC 972 with tax administration source NOIDT. See IRM 25.23.4.4.2, Required Actions on All Identified IDT Cases.).

  4. IDTVA – Compliance only - If the taxpayer provides falsified or altered documentation, when returning the case to the Compliance function, suggest the case be referred to the Campus Fraud Coordinator (CFC) as a potential fraud referral.

  5. The following is an example of a case determined not to meet the criteria of Identity Theft (NOIDT):

    Note:

    Taxpayer asserted he might be a victim of identity theft on February 12, 2017, when he filed Form 14039 and personal identification at his local Taxpayer Assistance Center (TAC). The TAC employee verified a return was already filed for the taxpayer under his SSN and input TC 971 AC 522 UNWORK indicating the claim was received. The TAC employee sent the return for processing. Several weeks later, the return posted to the taxpayers account as a TC 976. On May 24, 2017, the taxpayer calls toll-free and reports he made an error on his 16 year-old son’s return. The taxpayer inadvertently used his own SSN when completing his son’s return. The son’s return is posted as the TC 150 return. No identity theft occurred. The IRS employee inputs comments on AMS and makes a referral to the employee assigned the duplicate filing (DUPF) case. The employee assigned the DUPF will reverse the TC 971 AC 522 UNWORK from taxpayer’s account by marking the taxpayer’s account with a TC 972 AC 522 NOIDT, indicating the identity theft claim has been rescinded.

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    Note:

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    Caution:

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    Reminder:

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TC 971 AC 522 PNDCLM/UNWORK/IRSID - Incorrect Tax Year

  1. If you determine an account has been marked with a TC 971 AC 522 PNDCLM, UNWORK or IRSID for an incorrect tax year:

    IF AND Then
    1) The taxpayer is reporting identity theft in TY 2012 but ENMOD reflects a TC 971 AC 522 PNDCLM, UNWORK or IRSID for TY 2013 1) And there was no identity theft in 2013 1)
    1. Confirm there was no identity theft incident in TY 2013

    2. Reverse the TY 2013 AC 522 using TC 972 AC 522 NOIDT

    3. Input TC 971 AC 522 IRSID, PNDCLM or UNWORK, as applicable for the correct tax year (if none already exists)

    2) The taxpayer is reporting identity theft in TY 2012 but ENMOD reflects a TC 971 AC 522 PNDCLM for TY 2013 2) And there was ID theft in both tax years 2)
    • Input a TC 971 AC 522 UNWORK for TY 2012.

    3) There is a posted TC 971 AC 522 PNDCLM, UNWORK or IRSID for TY 2011 and a history for TY 2012 (H,PNDCLM2012) 3) And you determine no identity theft occurred in either tax year 3) Reverse the TY 2011 indicator using TC 972 AC 522 NOIDT.
    Leave the following history H, NOIDT2012.
    4) There is a posted TC 971 AC 522 PNDCLM, UNWORK or IRSID 4) And the taxpayer did not respond to your request for a claim or additional information. 4) Reverse the indicator using TC 972 AC 522 Refer to IRM 25.23.2.6.6.1, No Replies – TC 972 AC 522 NORPLY.

    Reminder:

    Update existing history items, if applicable.

IMF Identity Theft Worked by Functions Outside Accounts Management IDTVA

  1. The re-engineering effort brought accounts management and certain compliance functions under the Accounts Management Identity Theft Victim Assistance Organization. There are pockets of employees outside the new organization who will be working ID theft related issues identified using systemic applications and other applications and methods.

Identity Theft Identified by Criminal Investigation

  1. TC 971 AC 506 is applied to a taxpayer's account when Criminal Investigation (CI) identifies identity theft incidents that have tax administration effect. Such incidents can occur when a taxpayer's identity is stolen via phishing or refund schemes verified by CI.

  2. CI refers cases to Return Integrity and Compliance Service (RICS) Integrity & Verification Operations (IVO) to input TC 971 AC 506 on an account regardless of the existence of any other identity theft indicator code (AC 501, 504, or 505) that may be present on the account. Refer to Exhibit 25.23.2-8, IMF Only TC 971 AC 506- IRS Determined tax-related Identity Theft Case Closure, and Exhibit 25.23.2-9, IMF Only TC 972 AC 506 tax-related, Reversal of Identity Theft Case Closure, No Taxpayer Provided Documents, for more information about this identity theft indicator.

Return Integrity and Compliance Services (RICS). Identity Theft Identified by: Integrity & Verification Operations (IVO) and the Taxpayer Protection Program (TPP)
Excludes Former WI Compliance Exam Operations

  1. IVO handles identity theft account work processes and conducts research to verify the validity of tax return information. Specifically, IVO inputs a TC 971 AC 506 identity theft indicator on a taxpayer’s account when a false tax return has been identified by the IRS, and the tax return was not filed by the valid taxpayer. See IRM 25.25.6.3, Taxpayer Protection Program (TPP) Basic Authentication and Research, and IRM 25.25.6.4, Taxpayer Protection Program (TPP) High Risk Authentication (HRA) Procedures, for additional procedures.

  2. The Taxpayer Protection Program (TPP) is responsible for handling potential Identity Theft cases that are scored by a set of identity theft models in the Dependent Database (DDb) or selected through a query in Electronic Fraud Detection System (EFDS). Refer to IRM 25.25.6.5, Responding to the Taxpayer and Case Resolution for the Taxpayer Protection Program (TPP) Telephone Assistors and Taxpayer Assistance Center (TAC) Assistors, for additional information.

Operation Mass Mailing (OMM) Cases - Processing Good Returns
  1. Starting January 1, 2011, automation of the OMM unpostable process eliminated manual processing. OMM unpostable returns auto-void with URC D. If a good taxpayer's return needs to be processed (or reprocessed), route to Integrity & Verification Operations (IVO) for determination of the good taxpayer. Integrity & Verification Operations (IVO) will:

    • Input TC 971 AC 506 with OMMGB as the MISC field (no cycle delay)

    • Notate Special Processing Code (SPC) B on the return. (This will bypass the UPC 147 RC 8 check) and

    • Route the return to be processed

    Reminder:

    OMM Cases are worked by Integrity & Verification Operations (IVO).

All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY
  1. For case resolution, follow the chart below:

    If And Then
    If working a case and there is an existing TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is no tax account issue Route the claim to ICT/IDTVA-I.

    Note:

    Reassign the case to IDTVA if controlled on CIS. Refer to the Accounts Management Site Specialization Temporary Holding Numbers for the appropriate IDRS number.

    If working a case and there is an existing a TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is an account issue Follow normal case resolution procedures. Review the account for a TC 971 AC 522, if none exists, input the TC 971 AC 522 with MISC Field "OTHER" indicating receipt of the claim. Refer to IRM 25.23.2.3.7,Marking Taxpayer Accounts When Accepting Identity Theft Claims. Input a TC 971 AC 506, BOD: WI Program: AM Tax Admin Code: OTHER and a Secondary date of 01252016.

    Caution:

    Do not input TC 971 AC 501 as these taxpayers are blocked from on-line applications. An existing TC 971 AC 501 will not have a negative impact.

    As directed in IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506. Use the 239C letter to apprise the taxpayer of actions taken and include paragraphs:
    • A

    • I, J, L, and M (as applicable to the tax related identity theft case)

    • O, with fiil-in “We verified your claim of identity theft and placed an identity theft indicator on your account. You will need an Identity Protection PIN (IP-PIN) to file your returns in the future. You will receive your IP-PIN in a notice from us in December of each year.”

    • 3 with fill-in “Publication 5027, Identity Theft Information for Taxpayers, provides information to identity theft victims. You can access it thru our website, www.irs.gov.”

    • 8

    • 9

    • %

    Note:

    The 4674C may be used instead of the 239C as paragraphs may be selected that do not provide online access references.

    This victim notification letter will include information about:
    • Information about identity theft prevention.

    • Information about identity theft related resources.

    • Information about the identity theft indicator placed on his or her account.

    • Information about the IP-PIN.

    Caution:

    DO NOT use a 4310C letter to notify these taxpayers case resolution as these letters contain links to the on-line applications to which these taxpayers are blocked from using.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement. Refer to IRM 5.14.5.2, Streamlined Installment Agreements, for additional information on installment agreements.

MFT 32 - Overview
  1. Beginning with 2013 returns, RICS established an MFT 32 procedure to “house” fraudulent identity theft returns discovered by the IRS. This allows certain identity theft returns to post to MFT 32 instead of posting as a TC 150 or a TC 976 on the MFT 30 account.

  2. MFT 32 will contain tax returns that are known instances of Identity Theft (IDT). A return can be moved/posted to MFT 32 with one of the following actions:

    • Posting a TC 971 AC 111 to MFT 30

    • Editing Special Processing Code (SPC) "T" on the return

  3. When a TC 971 AC 111 posts to MFT 30 it will contain the DLN of the Identity Theft return in the MISC field of the transaction. A TC 976 with the same DLN of the Identity Theft return will post on MFT 32. When SPC "T" is edited on the return, a TC 971 AC 111 will not appear on MFT 30. For additional information regarding MFT 32 accounts, refer to IRM 25.25.6.7, MFT 32 Procedures, in addition to your functional IRM.

    Note:

    If a return cannot be located on MFT 30, research CC IMFOLI to determine if a MFT 32 module is present. If present, review MFT 32 for the posting of a TC 976 containing the DLN of the return in question. Research CC TRDBV to obtain the return data.

  4. All functions will work their own MFT 32 cases moved in error. For more information, see IRM 25.25.6.7.1 MFT 32 Reversal Procedures.

Identity Theft Identified by Submission Processing

  1. Submission Processing (SP) inputs TC 971 AC 506 identity theft indicator on the account of a taxpayer, with an unreversed TC 971 AC 501, when the unpostable resolution meets certain conditions. See IRM 25.23.2.6.1.1, Systemic Actions Taken After TC 971 AC 501 Placed on Account.

  2. Additional guidance for procedures used by Submission Processing can be found in the following IRMs:

    • IRM 3.28.4.5.7, Inputting Identity Theft Indicators

    • IRM 3.12.179.44, UPC 147 RC 0 - Identity Protection PIN (IP-PIN)

    • IRM 3.28.4.5, Unpostable Code (UPC) 147 Reason Code (RC) 0 and RC 1

    • Document 6209, Section 8, Unpostable Code - IMF

  3. See Exhibit 25.23.2-8, IMF Only TC 971 AC 506 — IRS Determined Tax-Related Identity Theft Case Closure, for more information about this identity theft indicator.

  4. SP will edit paper tax returns containing a Form 14039 with a Special Processing Code (SPC) 8. The SPC 8 systemically generates a TC 971 AC 522 indicating receipt of an identity theft claim. CP 01S is systemically issued to the taxpayer confirming receipt of the Form 14039. Refer to Exhibit 3.21.3-1, Attachment Guide, for additional information.

Miscellaneous Identity Theft Indicators

  1. The Service developed additional indicators to capture specific identity theft issues with specific characteristics. The indicators include:

    • AC 504: Both non-tax-related and specific tax-related identity theft issues

    • AC 505: IRS loss of PII

    • AC 523: Reserved

    • AC 524: Locking Decedent Accounts

    • AC 525: Employment related identity theft

    Reminder:

    Identity Theft indicators AC 501, AC 504, AC 505, AC 506, AC 522, AC 523, AC 524 and AC 525 never expire. In addition, once a taxpayer is in the IP-PIN population, they cannot be removed.

IMF TC 971 AC 504

  1. In FY 2014, the TC 971 AC 504 was expanded for use on both tax and non-tax-related identity theft allegations. AC 504 will be used mark taxpayer accounts when certain tax-related conditions exist. For additional information see IRM 25.23.2.8.1.2, TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL.

  2. IDTVA-I will continue to use TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M for taxpayer allegations of identity theft that do not affect tax administration. For additional information, IRM 25.23.2.8.1.1, TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M.

  3. Other BOD/Functions will use TC 971 AC 504 with Miscellaneous Field Codes SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL to mark taxpayer accounts when certain conditions apply. For additional information, see IRM 25.23.2.8.1.2, TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL.

    Note:

    Do not disclose to the taxpayer the TC 971 AC 504 with Miscellaneous Field Codes SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL.

TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M
  1. Input of TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M are reserved for use by IDTVA-I employees.

    Note:

    If a taxpayer subsequently claims tax-related identity theft, and the account was flagged with TC 971 AC 522 (INCOME, MULTI, INCMUL, OTHER, OR NOFR) and TC 971 AC 504 (ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M), do not request the taxpayer provide Form 14039 or police report and proof of identity if the TC 971 AC 522/504 are within the 3 year period.

  2. IDTVA-I applies TC 971 AC 504 with Miscellaneous Field Codes ACCT, ACCT-M, BOTH, BOTH-M, EMPL, EMPL-M, NKI or NKI-M when the taxpayer submits a claim that he or she is a victim of identity theft, and there is no known affect to tax administration.

    Example:

    A taxpayer lost his or her wallet on the subway and is concerned the loss may lead to identity theft in the future, or has noticed recent questionable credit card activity on one or more accounts.

    Caution:

    Command Code REQ77 will not accept a tax year that is seven years prior to the current date.

  3. IDTVA-I is comprised of employees who will process standard identity theft documentation and input the TC 971 AC 504 incident tracking indicator. Caseworkers will obtain identity theft supporting documentation as referenced in IRM 25.23.2.3, Identity Theft Claims – General Guidelines.

    Note:

    See IRM 25.23.3, IMF Identity Protection Specialized Unit (IPSU) Paper, for additional information regarding the duties and responsibilities of IDTVA-I (IPSU).

  4. If IRS employees are contacted by a taxpayer indicating a non-tax-related identity theft, see IRM 25.23.12.3, Identity Theft Telephone General Guidance, and IRM 25.23.3.2, Identity Theft - Paper Overview.

    Exception:

    Taxpayer Assistance Center employees should refer to their IRM 21.3.4.29.4, Non-Tax Related Identity Theft Issues, for procedures on how to assist taxpayers who walk into a Field Assistance Office.

TC 971 AC 504 - Miscellaneous Field Code SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL
  1. In 2014, IPSO expanded the use of TC 971 AC 504 for use by designated functions to flag taxpayer accounts when certain conditions exist.

    Caution:

    When inputting a TC 971 AC 504 with a Miscellaneous Field Codes SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL, the Secondary Date field will reflect the related tax year.

    Note:

    Do not disclose to the taxpayer the TC 971 AC 504 with Miscellaneous Field Codes SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL.

    Note:

    TC 971 AC 504 with Miscellaneous Field Codes SPCL1, SPCL2, RPM1, RPM2, RPM3, RPM4, and EAFAIL will not be input by IDTVA-I employees and may be tax-related.

  2. The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 504 on the oldest allowable year and leave an AMS history and/or ENMOD history indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: "H,AC504-2007" and input the TC 971 AC 504 on the oldest year allowed by programming).

  3. SPCL1 : will be used to mark an account when there is at least one incident of failed High-Risk Disclosure during a phone call and a taxpayer is requesting their Adjusted Gross Income (AGI) or Self Select PIN (SSP) so that they can e-file their tax return. These taxpayers will not be issued an IP-PIN based upon the input of AC 504 SPCL1. However, an IP-PIN may have been issued based upon the input of another identity theft code.

  4. SPCL2 : TC 971 AC 504 SPCL2 will be applied to a taxpayer's account when the taxpayer submits a Form 14039 under their SSN alleging BMF ID theft that is affecting their SSN.

    Example:

    The taxpayer receives IRS notices related to a business for which the taxpayer has no affiliations. The taxpayer asserts he/she has never applied for an EIN and has never owned or operated a business. The employee will apply TC 971 AC 504 with Miscellaneous Field Code SPCL2 using command code REQ77.

    Reminder:

    Prior to January 1, 2014, SPCL2 was used by the Accounts Management and Compliance to flag closed and resolved Return Preparer Misconduct cases. These taxpayers were not issued an IP-PIN based upon the input of AC 504 SPCL2. However, an IP-PIN may have been issued based upon the input of another identity theft code.

    Caution:

    If, after careful review and analysis of the BMF accounts, the employee working the identity theft issue determines no identity theft occurred, the employee will reverse the TC 971 AC 504 SPCL2 on the taxpayer's SSN. Refer to Exhibit 25.23.2-5, IMF Only TC 972 AC 504 — Reversal of TC 971 AC 504, for additional information.

  5. RPM1, RPM2, RPM3 and RPM4: will be used by IDTVA to flag closed and resolved Return Preparer Misconduct cases effective January 1, 2014.

  6. EAFAIL: formerly used by RICS to flag accounts where the Electronic Filing PIN (EFP) Application was linked to a telephone line that had been blocked after a series of attempts to secure a PIN. These taxpayers were not be issued an IP-PIN based upon the input of AC 504 EAFAIL. The Electronic Filing PIN (EFP) Application is no longer functional. However, an IP-PIN may have been issued based upon the input of another identity theft code.

  7. The presence of AC 504 SPCL1, SPCL2, EAFAIL, or RPM1, RPM2, RPM3, RPM4 should not impede the taxpayer's ability to obtain an IP-PIN if they have lost, misplaced or not received their IP-PIN. Refer to IRM 25.23.2.9.1, Lost, Misplaced or Non-Receipt of IP-PIN, for additional information and to IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication.

IMF Only - Manually Reversing TC 971 AC 504
  1. In some instances, it may be necessary to manually reverse TC 971 AC 504. If reversal is indicated (TC 972 AC 504), see Exhibit 25.23.2-5, IMF Only TC 972 AC 504 - Reversal of TC 971 AC 504, for a description of reasons for the reversal.

  2. Taxpayer requests: In situations where the taxpayer is requesting you reverse the TC 971 AC 504, the taxpayer MUST pass high risk disclosure prior to your making any account adjustments. Refer to IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication, for additional information.

  3. The taxpayer must provide a reasonable explanation as to why the TC 971 AC 504 marker should be removed.

    Example:

    The taxpayer states identity theft did not occur. The taxpayer thought a package containing PII was stolen, but the package was returned to the taxpayer in its original sealed condition.

    Note:

    Reversals of the AC 504 with any of the Miscellaneous codes in the table below is not limited to IDTVA-I and can be done by any employee once the request has been validated.

    If AND THEN
    The taxpayer passes high risk disclosure The Miscellaneous Field on the TC 971 AC 504 contains any of the following:
    • ACCT

    • ACCT-M

    • BOTH

    • BOTH-M

    • EMPL

    • EMPL-M

    • NKI

    • NKI-M

    Reverse the TC 971 AC 504 as directed in Exhibit 25.23.2-5, IMF Only TC 972 AC 504 - Reversal of TC 971 AC 504, using "TPRQ" in the Miscellaneous field
  4. If you determine the TC 971 AC 504 should be reversed for other than a taxpayer request, refer to the table in Exhibit 25.23.2-5, TC 972 AC 504 — Reversal of TC 971 AC 504, for a list of valid Miscellaneous Field Codes.

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IRS Data Loss Breaches- TC 971 AC 505

  1. Input of TC 971 AC 505 is limited and reserved for use by Privacy, Government Liaison, and Disclosure (PGLD) Incident Management employees. However, this indicator will be visible and available for reference on the individual’s account. See Exhibit 25.23.2-6, IMF Only TC 971 AC 505 — IRS Data Loss Incidents, and Exhibit 25.23.2-7, IMF Only TC 972 AC 505 — Reversal of TC 971 AC 505, for more information about this indicator.

    Note:

    When a TC 971 AC 505 is input on an account, PGLD does not ask for or require identity theft claims or additional information, as identity theft may not have occurred as of the date of the input of this action code.

  2. TC 971 AC 505 is applied to a taxpayer’s account when all of the following occur:

    1. A taxpayer’s PII was lost, breached, disclosed, or stolen.

    2. The incident risk assessment results in a high risk of harm to the potentially impacted taxpayer.

    3. The IRS notifies the taxpayer of this data loss incident.

    Example:

    Taxpayer case files containing PII were lost while being shipped from one location to another. Since the incident risk assessment resulted in a high risk of harm, the Incident Management Program will send notification letters to the potentially impacted taxpayers.

    Reminder:

    The TC971 AC505 does not block, or prevent, online system access, will not stop registration for online services, including Get Transcript or IP-PIN and will not stop paper requests for a transcript (Form 4506/T). Blocking accounts from on-line access is a separate action. The separate procedures for each breach number will include whether the accounts impacted by that incident are blocked.

  3. The taxpayer will receive a data loss notification Letter 4281C, (IM Breach Notification Letter), from the IRS advising him/her that information controlled by the IRS may have been disclosed to unauthorized individuals. The notification letter contains information related to identity protection and identity protection service arranged for the taxpayer by the IRS. Refer to IRM 25.23.12.5.7, Responses to IM Breach Notification Letter 4281C, for additional information.

    Note:

    The taxpayer must call the company identified in the letter to enroll in the free identity protection service.

  4. PGLD inputs TC 971 AC 505 on an account even when another identity theft indicator code (AC 501, 504, or 506) is present on the account. In some instances, it may be necessary for PGLD personnel to manually reverse the TC 971 AC 505 with a TC 972 AC 505.

  5. The AC 505 is used to track breach incidents. For information on the Incident Management Program see IRM 10.5.4.5.1.1, Applying the IRS Breach Tracking Indicator to IRS Breaches

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  1. RESERVED

Locking Decedent Accounts - TC 971 AC 524

  1. The TC 971 AC 524 is an identity theft indicator used to lock the account of deceased taxpayers. It prevents a deceased taxpayer's TIN (SSN or ITIN) from being used as the primary, secondary or dependent TIN on a current or subsequent year federal income tax return. Account locks can be applied both manually and systemically using internal or external information. However, input of the TC 971 AC 524 is limited and reserved for use by IPSO and RICS Taxpayer Protection Program (RICS TPP).

  2. TC 971 AC 524 can be viewed on the taxpayer’s entity using command codes ENMOD or IMFOLE.

  3. The identification, development, and implementation of specific population categories for the TC 971 AC 524 will be phased in by IPSO with the goal of creating a comprehensive list of taxpayers who do not have a filing requirement. Account locks may be initiated either manually or systemically.
    Manually: A manual lock is placed on a deceased taxpayer's account when a date of death (DOD) is present on the tax module and the account is identified by CI or Integrity & Verification Operations (IVO) as fraudulent.
    Systemically: A systemic lock is placed on a deceased taxpayer's account when we process a final return with a DOD.

  4. Systemic Locking of Deceased Taxpayer accounts occurs when all of the following are true:

    • A date of death is present on the tax module; and

    • A personal representative has filed a final return; and

    • Computer Condition Code A, F or 9 is placed on the account as indicated in the table below:

    A final return is filed with CCC: Then a TC 971 AC 524 is applied to
    F The primary taxpayer
    9 The secondary taxpayer only
    A Both Taxpayers

    Note:

    Refer to IRM 3.11.3.10.5, Computer Condition Codes for Decedent Returnsand IRM 3.13.5.132, Computer Condition Codes (CCCs),for additional information.

  5. Manual Locking occurs when individual accounts are identified by a business function and provided to IPSO or RICS for input using a systemic tool.

  6. Returns filed on decedent accounts containing an unreversed TC 971 AC 524 DECD, will be prevented from processing.
    Electronically Filed Returns

    If the taxpayer is And the source code is Then
    Primary DECD Taxpayer will receive a reject code IND 901
    Secondary DECD Taxpayer will receive a reject code IND 941


    Paper Filed Returns

    If the taxpayer is And the source code is Then
    Primary or Secondary DECD
    1. Return will unpost as UPC 147 RC 4

    2. Return will be auto- archived

    3. CP 01H We are Unable to Process Your Return, is mailed to the taxpayer

      Note:

      For information on CP 01H

      , refer to IRM 21.6.6.4.22.3, CP 01H Notice or Letter 12C Decedent Account Responses.

  7. UPC 147 Reason Code 4 will only be set if one of the two conditions below are present:

    • An unreversed TC 971 AC 524 is present on the Entity Module. Any return attempting to post that has a tax period subsequent to the Secondary date of the TC 971 AC 524 will unpost and be auto-archived. There are no exceptions.

    • No TC 971 AC 524 is on the Entity Module but during return processing Special Processing Code (SPC) 9 was entered on the return (see ERS EC 028). Entering SPC on a return will unpost the return as UPC 147 RC 4 and the return will be auto-archived. It will unpost ONLY the return that SPC 9 was input on. This leaves the module open for posting of a legitimate return. Do NOT refer the account to ECU to unlock (the account is not locked). If it is believed that the unposted return is the legitimate return it should be requested from Files using CC ESTAB and reprocessed.

Manually Reversing TC 971 AC 524 - Date of Death Present on Command Code INOLES
  1. Input of a TC 972 AC 524 will reverse a TC 971 AC 524 and will “unlock” the account. If there is a date of death on CC INOLES, the input of the TC 972 AC 524 is limited and reserved for:

    • Identity Protection Strategy & Oversight (IPSO)

    • RICS Taxpayer Protection Unit (RICS TPP)

    • Submission Processing Entity Control Unit (ECU)

  2. To unlock a decedent account, a taxpayer must provide information to support their request.

  3. If a taxpayer contacts IRS relating to a locked account and there is a Date of Death (DOD) on the account and an unreversed TC 971 AC 524 DECD is present, ALL of the following documentation MUST be provided by the taxpayer:

    1. Original/Copy of Letter/Notice from the Social Security Administration that communicates that the taxpayer is not deceased

    2. A photocopy of at least one of the following:

    • Passport or Driver's License

    • Social Security Card

    • Other valid US Federal or State Government issued identification;


    A copy of their tax return with an original signature(s);

    Exception:

    If the request is not related to a rejected return but is being made solely to perfect the date of death, the taxpayer does not need to provide a copy of a tax return. Instruct the taxpayer to contact the Social Security Administration (SSA) to correct the erroneous Date of Death (DOD).


    Instruct the taxpayer to send all of the above information to the same service center the taxpayer used to file his or her original tax return

    Note:

    Prepare Form 4442 and forward the documents provided by the taxpayer to the ECU

    .

  4. If a taxpayer contacts IRS relating to a locked account and there is no longer a Date of Death (DOD) on the account and an unreversed TC 971 AC 524 DECD is present on the entity, refer to Exhibit 25.23.2-14, TC 971 AC 524- Locking SSNs - Applies to IMF Accounts Only, Exhibit 25.23.2-15, TC 972 AC 524- Reversal of TC 971 AC 524, and IRM 3.12.179.44.3, UPC 147 RC 4- No Filing Requirement, for information.

Manually Reversing TC 971 AC 524 - No Date of Death Present on Command Code INOLES
  1. In situations where there is no DOD on INOLES CSRs may, after completing the required taxpayer authentication, reverse TC 971 AC 524.

    Caution:

    If there is a date of death on INOLES, do NOT reverse the TC 971 AC 524. Refer to IRM 25.23.2.8.4.1, Manually Reversing TC 971 AC 524 - Date of Death Present on Command Code INOLES, for procedures.

  2. If a taxpayer contacts IRS relating to a locked account and there is no longer a Date of Death (DOD) on the account and an unreversed TC 971 AC 524 DECD is present on the entity, reverse the TC 971 AC 524. To reverse a TC 971 AC 524, you will need to access command code REQ77:

    1. Access command code REQ77 from ENMOD

    2. Enter TC 972 in the TC field

    3. Enter the transaction date of the TC 971 AC 524 being reversed in the TRANS-DT field

    4. In the Secondary Date Field, enter the tax year from the TC 971 AC 524. If there is no tax year present, use "1231" and the year the reversal was input, In 2015, the Secondary Date field date would be input as "12312015" .

    5. In the MISC Field enter the appropriate BOD, Program, and Tax Administration Source Code describing why the TC 971 AC 524 is being reversed (use IRSERR when there is no date of death present)


    For additional input information, refer to Exhibit 25.23.2-15, TC 972 AC 524- Reversal of TC 971 AC 524.

Employment-related Identity Theft – TC 971 AC 525

  1. Employment Related Identity Theft occurs when someone, other than the valid SSN owner, uses the SSN to obtain or retain employment. Employment Related Identity Theft is considered “non-tax” related because it does not involve the filing of a fraudulent income tax return. However, the income generated by the person other than the valid SSN owner may have a tax account impact if it results in the assessment of additional tax if not identified and treated prior to the assessment.

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    Note:

    Employment-related identity theft is not a tax administration issue; therefore, no TC 971 AC 522 is required.

    Caution:

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    Note:

    The potential misuse of the taxpayer’s SSN in this manner is unrelated to and has no impact on the taxpayer’s tax return or their ability to file a tax return.

  3. The TC 971 AC 525 indicator code is systemically applied to the valid SSN owners account when IRS identifies an ITIN/SSN mismatch involving the taxpayer’s SSN. The indicator will be applied a maximum of one time each year regardless of how many times the SSN was used.

    Note:

    If an account does not exist for the identified SSN, no account will be created and no TC 971 AC 525 will be generated. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . TC 971 AC 525 is not applied to the ITIN taxpayer's account and there is no cross-reference between the ITIN on the originating return and SSN on the mismatched W-2

    Note:

    IRS is not aware if the misuse of the taxpayer’s SSN is intentional or accidental due to a mistake when preparing the Form W-2. Due to the potential for harm to the taxpayer if their SSN was compromised, IRS is treating this incident as a “potential” misuse situation and providing guidance on protecting personal and financial information as a proactive protective action.

    Note:

    If the taxpayer requests copies of any of their tax information, such as transcripts or returns, please refer to procedures in IRM 21.2.3.5.8, Transcripts and Identity Theft, for guidance.

    1. Authority for systemic and manual input of the TC 971 AC 525 is limited and reserved for use by Accounts Management Identity Protection (IP) staff.

    2. The placement of the indicator on the taxpayers account prevents any income from the Form W-2 that does not belong to the valid SSN owner from being assessed against their account. There is no other impact to the taxpayers account.

    3. TC 971 AC 525 can be viewed on the taxpayer’s entity module using command codes ENMOD or IMFOLE.

  4. Notifications are issued to taxpayers who had a TC 971 AC 525 indicator placed on their account after January 1, 2017. Notifications are issued via CP01E (CP701E for Spanish) Employment Related Identity Theft notice using the name(s) and address on the last posted return (i.e. address of record). The CP01E /CP701E is generated 2 cycles after the posting of the AC 525 indicator.

    Note:

    Taxpayers who received an indicator prior to January 1, 2017 will be notified if an incident occurs, and an additional indicator is placed on their account after January 1, 2017

    Note:

    While a taxpayer’s SSN may be impacted in subsequent years, the CP01E notice will only be issued to the same taxpayer once every 3 years.

    Example:

    If a taxpayer receives a CP01E in 2018 and an employment related IDT incident occurs again in 2019, 2020 and 2021, an AC 525 indicator will be applied to the taxpayers account to document an identified mismatch but the taxpayer will not receive another CP01E until 2021.

    1. TC 971 AC 804 with a MISC of 001E will post to master file when the CP01E is generated.

    2. The name(s) displayed on the notice reflect the name(s) on the taxpayers account.

      Note:

      If the notice contains 2 names, the impacted taxpayer will always be the first name listed on the notice.

      Note:

      If the notice is addressed to a child, then the child’s SSN may have been misused. Children may be impacted in the same way as adults and should follow the same protection guidelines.

  5. While the CP01E/701E is an informational notice only, taxpayers may react to the notice by telephone, correspondence or visiting a TAC. When responding to taxpayer inquiries, refer to the following information:

    1. Ask the taxpayer about which notice they are calling. If the taxpayer cannot find the notice number, ask them to look on the upper right-hand corner and clearly recite the notice number. If necessary, repeat the notice number, “C, P, O, 1, E”. Pronounced “See Pea Oh 1 E” or See Pea Zero 1 E”.

      Exception:

      Employees answering APP 162 and/or working with Spanish speaking taxpayers should continue to identify the caller’s issue/notice in Spanish and are excepted from referencing the notice number as “C, P, O, 1, E”.

    2. Full disclosure and authentication is required for account related calls only. See IRM 21.1.1.4 (7), Communication Skills, for more information.

    3. When a taxpayer or third party contacts the IRS, and is only requesting general information regarding the CP01E, authentication is not required. Information that is contained within the CP01E or on IRS web pages is considered public information and can be provided without authentication.

      Note:

      There is no additional information regarding the source action or W-2 document available on the taxpayers account.

    4. When a taxpayer or third-party contacts the IRS, regarding a deceased person, be empathetic with the caller and advise the caller that the notice was issued to provide information on checking the decedents financial or credit records to see if there may be any impact to an estate situation.

    5. If account access is requested or necessary, the taxpayer or third party must be authenticated. See IRM 21.1.3.2.3, Required Taxpayer Authentication, and either IRM 21.1.3.2.4, Additional Taxpayer Authentication, for taxpayers or IRM 21.1.3.3, Third Party (Power of Attorney (POA)/Taxpayer Information Authorization (TIA)/F706) Authentication, for third party contacts.

      Note:

      Third party contacts must be authorized by an existing and valid Form 2848 Power of Attorney and Declaration of Representative or, Form 8821 Tax Information Authorization prior to discussing account information.

    6. Under no circumstances should assistors offer to, or attempt to research, the source of the AC 525 indicator including but not limited to, the tax return and/or Form W-2. There is no link to the source document and identification of the source of the indicator is not possible. Taxpayers should be provided general information only

    7. In all cases, refer the taxpayers to the following resources on IRS.gov for additional information:
      •Understanding Your CP01E Notice,
      •Guide to Employment-related Identity Theft
      • and Taxpayer Guide to Identity Theft

    8. In addition, you should advise taxpayers to take the following steps to protect their financial and tax accounts as well as their personal information:

      Action Description
      If they do not currently have one, they may request an Identity Protection PIN (IP-PIN) to protect their tax account. Obtain an IP-PIN by going to www.irs.gov/getanippin, passing our identity verification “secure access” process and creating an online account. Once authenticated, a new IP-PIN must be obtained each year and included with their tax return to authenticate their identity. If they are unable to authenticate using the online process, they should file Form 14039 and check box 2 and state that they have been the victim of “Employment Related Identity Theft” in the description box.

      Reminder:

      Currently, once established, there is no process to remove a taxpayer from the IP-PIN population/requirement, even with the reversal of AC 501 or AC 506.

      Monitor their credit report and all financial accounts Obtain a copy of all financial and credit and review them for unusual or unauthorized activity. Obtain a copy of their credit report by contacting any one of the three nationwide credit reporting companies online or through the company’s toll-free numbers listed in the CP01E Notice.
      Place a fraud alert on credit accounts As an extra precaution, contact one of the credit agencies listed on the CP01E and request that a fraud alert be placed on all credit accounts
      File a complaint with the Federal Trade Commission Contact the Federal Trade Commission at: www.IdentityTheft.gov or call FTC's Identity Theft Hotline: 1-877-438-4338; TTY: 1-866-653-4261
      Review Social Security Administration records to ensure that their earnings records are correct Sign up for an electronic account at www.SSA.gov to check for excessive income being reported
  6. Field Assistance (TAC) Only: If the TAC visit has unanswerable questions or needs additional assistance, complete Form 4442 “Inquiry Referral” by completing boxes 1 – 4, 8 – 10 and 13 – 14. In section B, input “CP01E TAC Center Visit” and the taxpayers question. Either enter the taxpayers telephone number in box 24, or the taxpayers e-mail address in box 25, and enter the question or issue in Section B. Forward the completed Form 4442 via encrypted e-mail to: *W&I CAS:AM:IPSO Employment Identity Theft.

    Note:

    When forwarding Forms 4442 via encrypted e-mails, managers may wish to consolidate all forms for a specific day into a single e-mail to reduce the number of e-mails and avoid overloading the mailbox.

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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Identity Protection Personal Identification Number (IP-PIN)

  1. Based upon the type of identity theft indicator, the taxpayer may be eligible for an IP-PIN. Refer to the table under (1) of IRM 25.23.2.4.1, Tracking and Reporting Identity Theft Cases – Identity Theft Indicators, for information about IP-PINs and delivery methods. The IP-PIN is an identification number used on any federal return, both current and prior years, filed by the taxpayer, during the calendar year the IP-PIN was received.

    Note:

    If a taxpayer receives an IP-PIN and claims they do not have a filing requirement, inform the taxpayer that the IP-PIN protects them from mis-use of their SSN for filing a tax return, even if they do not have a need to file a return.

  2. The Identity Protection PIN is used to validate a taxpayer's identity and for security purposes. A new IP-PIN is issued each year in December. If a taxpayer loses or misplaces the IP-PIN, refer to IRM 25.23.2.9.1, Lost, Misplaced or Non-Receipt of IP-PIN.

    Note:

    The latest IP-PIN issued to the taxpayer is the valid IP-PIN for any returns filed during the processing year. This include the current return and any prior year returns.

  3. Electronic Filing - Taxpayers filing electronically will be prompted by their software to input their IP-PIN. The input of the IP-PIN varies with different software. When filing a joint return, either the primary or spouse or both must input their IP-PIN if they were assigned one by IRS or elected to receive one (opted in). If a taxpayer was issued an IP-PIN and does not use the IP-PIN, or the IP-PIN input is incorrect, the e-filed return will reject. The IRS requires the use of Identity Protection PINs (IP-PIN) for all Social Security Numbers (SSNs) with an IP-PIN requirement, regardless of whether the SSN is entered for a primary, spouse, or dependent/qualifying individual. Entry of an IP-PIN will be required for any SSN with an IP-PIN requirement on the following Forms/Schedules.

    • Form 1040, Individual Income Tax, series

    • Form 2441, Child and Dependent Care Expenses

    • Schedule Earned Income Tax Credit (EITC)

    Note:

    For tax years prior to 2013, only the primary taxpayer needs to input their IP-PIN if they received one.

    Caution:

    If a taxpayer states that they cannot locate where to input their IP-PIN using their tax software, they should contact the software provider they are using. IRS cannot provide assistance on individual software.

  4. Filing on Paper - Only the primary taxpayer’s IP-PIN is used when filing a paper return. Taxpayers filing Individual Income Tax paper returns (Form 1040, 1040A, and 1040EZ), will place the IP-PIN into the 6 boxes just to the right of “spouse’s occupation” labeled “Identity Protection PIN”. Paper returns that require an IP-PIN but are filed with a missing or incorrect IP-PIN, will unpost for manual review to validate the taxpayer’s identity prior to acceptance.

  5. Tax Accounts and CP01A -

    1. In mid December, the IRS issues a CP 01A notice providing the six digit IP-PIN and filing instructions to select taxpayers meeting specific criteria.

    2. The CP 01A notice is issued systemically and can be reissued if the taxpayer meets certain criteria. Refer to IRM 25.23.2.9.1, Lost, Misplaced or Non-Receipt of IP-PIN.

    3. To determine if a taxpayer’s account was selected for an IP-PIN, review CC IMFOLE for an IP-PIN indicator: IMFOLE line 14 will display:
      "IP-PIN:1" if an IP-PIN was generated to the taxpayer’ account.
      "IP-PIN:0" if no IP-PIN was generated to the taxpayer’s account.

      Note:

      Refer to Exhibit 2.3.51-13,Command Code IMFOL Output Display — Entity, for additional information.

      Example:

      NYPTA: FMS CD: PDC-ID: ID THEFT 1:2 ID THEFT 2:0 IP-PIN:1 VODV:0

    Caution:

    If IMFOLE reflects "IP-PIN: 0" , an IP-PIN was not generated to the taxpayer’s account. Do not request reissuance of an IP-PIN.

    Reminder:

    Taxpayers selected for the IP-PIN program will be sent a new IP-PIN every year (prior to the start of the next tax season) for as long as the IP-PIN indicator remains active on their account. Currently, there is no avenue to remove a taxpayer from the IP-PIN population, even with the reversal of AC 501 or AC 506.

  6. Taxpayers who have been identity theft victims are eligible to use the IP-PIN Opt-in at any time during the year once their accounts have been marked with an IP-PIN indicator.

    Example:

    A taxpayer self reported being an ID theft victim in February 2017. The IRS resolved the tax-related identity theft issue and applied a TC 971 AC 501 to the account in April 2017. In April 2017, once the TC 971 AC 501 has posted, the taxpayer can use the IP-PIN Opt-in program.

Lost, Misplaced or Non-Receipt of IP-PIN

  1. Eligible taxpayers who did not receive, or have lost, their IP-PIN can retrieve their original IP-PIN through the www.irs.gov/getanippin.The “Get an IP-PIN” tool is only available when Modernized Electronic Filing (MEF) is available. For more information on the e-authentication process, see IRM 21.2.1.58 Secure Access eAuthentication. Taxpayers selected for the IP-PIN program will be sent a new IP-PIN every year (prior to the start of the next tax season) indefinitely

    Note:

    The statement above is for the employee’s information, to assist them in educating the taxpayer. If the taxpayer is on the phone, follow the steps below to determine if the taxpayer is eligible to have their IP-PIN reissued. Do not refer them back to the web page unless they do not meet the criteria below.

  2. IP-PIN Entry Tool – The IP-PIN Entry Tool was developed to streamline the process of re-issuing a taxpayer’s IP-PIN. The IP-PIN Entry Tool will verify that a notice CP01A was issued to the taxpayer for processing year 2018 after a SSN has been input into the tool.

    • If a CP01A was issued, it will transmit the SSN to Headquarters for processing of Letter 4869C which re-issues the IP-PIN to the taxpayer. It will also record the submitter’s name, SEID, e-mail address, and manager’s name and e-mail address.

    • If a CP01A was not issued, a message will appear that “PY 2018 CP01A was not issued for XXX-XX-XXXX (that particular SSN). The SSN will not be transmitted to Headquarters for processing.

    Designated assistors can access the tool at IP-PIN Entry Tool

  3. If you receive a call from a taxpayer who lost, misplaced or did not receive their CP01A containing their IP-PIN or was unable to get their IP-PIN via the application, perform the appropriate, high risk authentication procedures.

    Exception:

    If a taxpayer calls about continually receiving an error message when attempting to opt in for their IP-PIN or retrieving a lost or misplaced IP-PIN, see IRM 25.23.2.9.3 IP-PIN Issues.

    Caution:

    : If the caller is unable to pass disclosure, do NOT refer them to the TAC office appointment line or direct them to a TAC office. Instead, inform them that their best avenue to file is by paper.

    Inform the taxpayer that we can re-issue their IP-PIN via a Letter 4869C within 21 calendar days by mail if ALL the following are true:

    1. The taxpayers have not completed their filings for the current calendar year

    2. They are still at their address of record

    3. Address Change Cycle must be prior to 201804

    4. ENMOD cannot have a pending address change (TC 014 PN or EP) for 2018

    5. The taxpayer's account was selected for an IP-PIN. To confirm an IP-PIN generated for the current filing season, review CC IMFOLE for an IP-PIN indicator: IMFOLE line 14 will display: “971 01-01-2018 20175005 XX277-XXX-XXXXX-X AC: 0804 MISC:CP 001A”. If the transaction is not present the taxpayer is not eligible to receive their IP-PIN by mail. To determine if a taxpayer’s account was selected for an IP-PIN, review CC IMFOLE for an IP-PIN indicator: IMFOLE line 14 will display:
      "IP-PIN:1" if an IP-PIN was generated to the taxpayer’s account.
      "IP-PIN:0" if no IP-PIN was generated to the taxpayer’s account.

      Note:

      Refer to IRM Exhibit 2.3.51-13,Command Code IMFOL Output Display — Entity, for additional information.

      Example:

      NYPTA: FMS CD: PDC-ID: ID THEFT 1:2 ID THEFT 2:0 IP-PIN:1 VODV:0

      Refer to IRM Exhibit 2.3.51-13,Command Code IMFOL Output Display — Entity, for additional information.

    6. The taxpayer did not “opt in” and receive their original IP-PIN on the website.

      Reminder:

      A CP01A may have been suppressed for the current filing season, check for a TC 971 AC 661 on the most recent tax module. If taxpayers address is correct as of cycle 201804, the taxpayer will be eligible to have their original IP-PIN reissued to them.

      Note:

      Inform the taxpayer that at any time they can file their return by paper. During the call, inform the taxpayer that if they do not receive their re-issued IP-PIN letter within 21 calendar days, or if they do not meet the bulleted requirements above, filing by paper would be their only option. A paper return with a missing or incorrect primary taxpayer IP-PIN is subjected to additional review for identity verification, which will delay return processing and issuance of any refund that may be due.

    Exception:

    Unless a dependent is also the primary taxpayer on their own return and meets all the other parameters, they are not eligible to receive their original IP-PIN through this process. Any tax return listing them must be filed by mail (paper).

  4. IP-PIN Entry Tool Telephone Assistors. If the taxpayer is eligible to have their IP-PIN re-issued and

    The IP-PIN Tool is: Then
    1. available and the tool is online 1. Input the taxpayer’s SSN into IP-PIN Entry tool:
    • Response - “XXX-XX-XXXX has been saved for processing.” SSN successfully saved for processing

    • Response – “PY 2018 CP01A was not issued for XXX-XX-XXXX

    If the response indicates an unsuccessful attempt, check to ensure the SSN was input correctly, if:
    • not correct – re-input SSN

    • correct – taxpayer did not receive current year CP01A and is not eligible. Inform the taxpayer they do not meet the re-issuance criteria and that they must file by paper.

    2. not available or offline 2. Complete Form 4442 and forward it to your Lead.

    Caution:

    The IP-PIN is assigned to an individual TIN. Only the TIN owner or their authorized representative may request the IP-PIN.

  5. Consolidation of Forms 4442 for Processing - Using established local procedures, the SSNs from all completed Forms 4442 for each site will input into the IP-PIN Entry Tool within 48 hours. As the SSNs are input into the IP-PIN Entry Tool, one of two responses will be displayed.

    If the response states: Then
    1. SSN saved for processing 1. SSN has been transmitted to Headquarters for processing.
    2. PY 2018 CP01A was not issued for XXX-XX-XXXX 2. Check to ensure the SSN was input correctly, if:
    • not correct – re-input SSN

    • correct – taxpayer did not receive current year CP01A. Reject the Form 4442 back to the submitter with instructions to add a history on AMS stating the taxpayer was not issued a CP01A for the current year and doesn’t qualify to have an IP-PIN reissued.

  6. IP- Pin Re-Issue Post Processing - Some SSNs that are input to the IP-PIN Entry Tool will reject at processing due to recent address changes and/or pending changes. The reject SSNs will be sent back to the person that submitted the SSN into the tool and their manager via an encrypted e-mail.

    If rejected SSN was input: Then
    1. Directly without a prepared Form 4442 (Item 3 above) 1. Add a history note on AMS stating that the letter was not sent due to a change of address in the current year.
    2. Based on a prepared Form 4442 (Item 3 or Item 4 above) 1. Reject the Form 4442 back to the form preparer with instructions to add a history on AMS stating the letter was not sent due to a change of address in the current year.
  7. If the taxpayer contacts you regarding the non-receipt of the Letter 4869C research thoroughly to determine if they were eligible to receive the letter and if it was sent. If the taxpayer WAS eligible to receive their original IP-PIN, their account will have the history item 4869C with an IDRS number of 1387800000.

    If research reveals the taxpayer: Then advise the taxpayer:
    1. was eligible to receive the letter and the letter was sent 1.
    • What date our records indicate the letter was sent.

    • If beyond 21 calendar days that filing by paper without an IP-PIN would be the only option, and

    • We apologize for the inconvenience.

    2. was eligible to receive the letter and the letter was not sent 2.
    • That filing by paper without an IP-PIN would be the only option, and

    • We apologize for the inconvenience.

    3. Was not eligible to receive the letter 3.
    • They must file by paper without an IP-PIN, and

    • We apologize for the inconvenience.

    .

IP-PIN Opt-In Available For Designated Taxpayers Who Are Not ID Theft Victims

  1. In 2014, W&I piloted a program to provide IP-PINs to taxpayers (whether there was an identity theft issue or not) who filed their prior year tax return in Florida, Georgia, or Washington, DC. Those states were chosen because they were the areas with the highest per-capita rate of identity theft. This additional layer of security was available to taxpayers who filed in one of those three locations last year and successfully obtained an Electronic Filing PIN (EFP) using the online application.

  2. In 2015, we expanded the pilot to allow all taxpayers who filed their TY 2013 return in Florida, Georgia or Washington, DC, to get an IP-PIN. W&I will be marketing this opportunity and including guidance for taxpayers and preparers on IRS.Gov. Before a taxpayer can obtain an IP-PIN, the taxpayer must verify his or her identity using a new web application that will ask a series of questions only the taxpayer should be able to answer.

    Exception:

    If a taxpayer calls about continually receiving an error message when attempting to opt in for their IP-PIN or retrieving a lost or misplaced IP-PIN, see IRM 25.23.2.9.3, IP-PIN Issues.

    Note:

    Only those taxpayers who can verify their identity will be issued an IP-PIN. If the taxpayer is unable to verify their identity, they should file as they normally would file, without an IP-PIN.

  3. Once these taxpayers opt-into the IP-PIN process, the IP-PIN indicator on IMFOLE line 14 will reflect "1" . For taxpayers who do not opt-in for an IP-PIN, the IP-PIN indicator on IMFOLE will reflect "0" .
    "IP-PIN:1" : if an IP-PIN was generated to the taxpayer.
    "IP-PIN:0" : if no IP-PIN was issued.

    Reminder:

    Any taxpayer who participates in the IP-PIN OPT-IN process will be issued a Notice CP 01A notice for the following tax year.

  4. Taxpayers filing electronically with the IP-PIN will need to consult their software or practitioner as to where to put the IP-PIN.

  5. The primary taxpayer filing on paper with an IP-PIN must hand write the IP-PIN in the field labeled "Identity Protection PIN" , just to the right of the spouse’s occupation in the signature section of the form,. Only the primary taxpayer can enter their IP-PIN. There is no place on a paper return for the secondary taxpayer’s IP-PIN, even if he/she is the only one who has an IP-PIN.

  6. Taxpayers issued an IP-PIN are required to use the IP-PIN when filing their return except when the taxpayer with the IP-PIN is secondary on a paper return.
    An e-file return will reject and not be processed if an IP-PIN is required and is missing or incorrect.
    A paper return with a missing or incorrect primary taxpayer IP-PIN is subjected to additional review for identity verification, which will delay return processing and issuance of any refund that may be due.

IP-PIN Issues

  1. If a taxpayer contacts the service stating their electronic filing rejected due to prior use of their Taxpayer Identifying Number (TIN) even though they used their IP-PIN:

    • Apologize for the inconvenience

    • Tell the taxpayer to file a paper return using their IP-PIN

      Note:

      On paper returns, only the Primary IP-PIN is entered

    • Do not make any statements about the IP-PIN program beyond your apology

      Caution:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. A taxpayer calls about continually receiving an error message when attempting to opt in for their IP-PIN or retrieving a lost or misplaced IP-PIN. Some inconsistencies within the authentication process have been identified and should be resolved in the future. See below for specific scenarios:

    If the taxpayer is attempting to Then
    Opt in based on notice or a letter they have received and have filed all tax returns for the year Tell the taxpayer will receive their IP-PIN via CP01A in January.
    Opt in based on notice or a letter they have received and has NOT filed all tax returns for the year Tell the taxpayer to file a paper return, if his electronic return is rejected.
    Opt in based on having a Florida, Georgia or Washington DC address. The taxpayer can file his return normally.
  3. Because there is a finite pool of generated IP-PIN numbers some taxpayers may have the same number as last year.

Get Transcript Incident

  1. During filing Season 2015, third parties gained unauthorized access to the "Get Transcript" online application using taxpayer Personally Identifiable Information (PII) they obtained through sources outside IRS. You can identify these taxpayers by reviewing ENMOD/IMFOLE for a TC 971 AC 505 with one of the following three incident numbers:

    • TC 971 AC 505 IR20150521512

    • TC 971 AC 505 IR20150521555

    • TC 971 AC 505 IR20150521556

  2. Taxpayers wishing to participate in the IP-PIN program were directed to file Form 14039. Affected accounts are blocked from on-line applications. Taxpayers will NOT be able to log into on-line accounts or services (Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. To ensure these taxpayers will receive a CP 01A providing an IP-PIN:

    1. Verify and update the address, as appropriate.

    2. Input TC 971 AC 506 WI AM OTHER.

    3. Issue appropriate closing letter

Get Transcript Incident - Non-Tax Related Form 14039 IDTVA-IPSU Only

  1. Taxpayers who have not experienced a tax-related identity theft issue and who choose to file Form 14039 to obtain an IP-PIN will be directed to IDTVA-I (IPSU) for case resolution.

  2. The IDTVA-I employee will:

    1. Input the TC 971 AC 522 MISC Field "UNWORK" - indicating receipt of an identity theft claim, refer to IRM 25.23.2.3.7, Marking Taxpayer Accounts When Accepting Identity Theft Claims, AND follow table below:

    IF AND THEN
    The case has an existing
    • TC 971 AC 505 IR20150521512

    • TC 971 AC 505 IR20150521555

    • TC 971 AC 505 IR20150521556

    There is no tax-related issue
    Input TC 971 AC 506:
    BOD:WI
    Program: AM
    Tax Admin Code: OTHER
    Secondary Date: 12312014

    Caution:

    Do not input TC 971 AC 504 as these taxpayers are blocked from on-line applications. An existing TC 971 AC 50X will not have a negative impact.


    Issue a Letter 4403C paragraph C, I and * (insert the language below in paragraph I):
    "We have verified your claim of identity theft and placed an identity theft indicator on your account so we can monitor activity and help prevent future fraud. No further action is needed on your part. To further protect you, we will issue you an IP-PIN by mail in December. You will need an identity protection PIN to file your tax returns in the future."

    Caution:

    If the TC 971 AC 506 is not input prior to cycle 47 of the processing year, an IP-PIN/CP01A will not generate for the upcoming filing season. Do not include the last two sentences above “To further protect you, we will issue you an IP-PIN by mail in December. You will need an identity protection PIN to file your tax returns in the future." as no IP-PIN will be issued for the upcoming filing season due to timing.

    Reminder:

    IDTVA-I will not input TC 971 AC 504 as these taxpayers are blocked from on-line applications.

    The case has an existing
    • TC 971 AC 505 IR20150521512

    • TC 971 AC 505 IR20150521555

    • TC 971 AC 505 IR20150521556

    There is a tax-related issue
    IDTVA-I will route the case to the appropriate Function for resolution following their normal procedures.
    The function resolving the tax issue will input:
    Input TC 971 AC 506:
    BOD: WI
    Program: AM
    Tax Admin Code: OTHER
    Secondary Date: 12312014 and issue a closing letter as indicated in IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution.

Get Transcript Incident - Tax Related Case Resolution

  1. This guidance is for all employees resolving tax-related identity theft issues when addressing accounts with TC 971 AC 505 IR20150521512, IR20150521555, or IR20150521556 ONLY.

  2. If the taxpayer has submitted a Form 14039. Input the TC 971 AC 522 with MISC Field "UNWORK" - indicating receipt of a claim. Refer to IRM 25.23.2.3.7, Marking Taxpayer Accounts When Accepting Identity Theft Claims,AND follow table below:

    IF AND THEN
    If working a case and there is an existing
    • TC 971 AC 505 IR20150521512

    • TC 971 AC 505 IR20150521555

    • TC 971 AC 505 IR20150521556

    There is a tax account issue
    Follow normal account resolution procedures.
    Input TC 971 AC 506:
    BOD:WI
    Program: AM
    Tax Admin Code: OTHER
    Secondary Date: 12312014

    Caution:

    Do not input TC 971 AC 501 as these taxpayers are blocked from on-line applications. An existing TC 971 AC 501 will not have a negative impact.

    As directed in IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506. Issue letter Letter 4674C. to apprise the taxpayer of the actions taken. Use the following paragraphs: A, B through I, as appropriate, J with fill-in Publication 5027, Identity Theft Information for Taxpayers, provides helpful information to identity theft victims. You can access it through our website, www.irs.gov. We adjusted your tax account to show the correct return information or removed the incorrect return from your account. You should continue to file all federal tax returns as you normally would., K through W, as appropriate and any additional paragraphs necessary to inform the taxpayer the actions you took.

    Caution:

    Do NOT include any paragraphs referencing on-line access, as these account are blocked.

    This victim notification letter will include information about:
    • Information about identity theft prevention.

    • Information about identity theft related resources.

    • Information about the identity theft indicator placed on his or her account.

    • Information about the IP-PIN.

    Caution:

    DO NOT use a 4310C letter to notify these taxpayers case resolution as these letters contain links to the on-line applications to which these taxpayers are blocked from using.

Get an Electronic Filing PIN Incident - Background

  1. Third parties gained unauthorized access to the "Get Your Electronic Filing PIN" online application using taxpayer personally identifiable information (PII) they obtained through sources outside IRS. There was no disclosure of PII by the IRS and the IRS is taking additional steps to prevent a fraudulent return from posting to the taxpayer's account. The IRS developed methods to identify these accounts using TC 971 AC 505.

  2. In June of 2017, the IRS announced the discontinuance of the e-File PIN application. As a result, the IRS will no longer accept the e-file PIN as a variable for validating returns. Taxpayers will now be required to use their prior year Self-Select PIN (SSP) or their prior year Adjusted Gross Income (AGI) to sign and validate their returns. Taxpayers seeking their AGI may acquire this information through Get Transcript Online or Order a Transcript by Mail (web and phone applications).

Get an Electronic Filing PIN Incident - How to Identify These Accounts

  1. IRS grouped the unauthorized access accounts into three populations and developed coding to facilitate case recognition.

    • IR20160127510

    • IR20160127513

    • IR20160614508 (this number designates a separate incident and identifies both successful and unsuccessful attempts.)

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement, refer to IRM 5.14.5.2,Streamlined Installment Agreements, for additional information on installment agreements.

  2. The affected taxpayer entity (cc ENMOD/ IMFOLE) will contain one of the following TC 971 AC 505 codes:

    Type of Incident Taxpayer Notification Letter Identify Affected Account Using Command Code ENMOD
    Successfully obtained E-File PIN Letter 9298A TC 971 AC 505 IR20160127510 or IR20160614508
    Unsuccessfully attempted to obtain E-File PIN Letter 9298 TC 971 AC 505 IR20160127513 or IR20160614508

Actions to Take When Taxpayers Call

  1. If you receive a call:

    Reason for call And Then
    Received Letter 9298A and could successfully efile their return Would like to obtain an IP-PIN for next year Advise the taxpayer to attach the Letter 9298A to a completed Form 14039 and return it to the address on the letter.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement, refer to IRM IRM 5.14.5.2,Streamlined Installment Agreements, for additional information on installment agreements.

    Received either Letter 9298A orLetter 9298 Attempted to file their return but their return was rejected due to duplicate filing Advise the taxpayer to file a paper return with a completed Form 14039 and a copy of current, valid state or federally issued identification attached.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement, refer to IRM 5.14.5.2, Streamlined Installment Agreements, for additional information on installment agreements.

    Received either Letter 9298A orLetter 9298 And they ask “Why did I receive this letter?”
    • Advise the taxpayer that an attempt was made to obtain an E-file PIN for their social security number and the attempt was:

      1. Letter 9298A -Successful

      2. Letter 9298 - Unsuccessful

    • Assure them that no PII was obtained from the IRS and the IRS is taking additional measures to prevent the filing of a fraudulent return.

    • Ask them to follow the instructions listed in their letter.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement, refer to IRM 5.14.5.2, Streamlined Installment Agreements, for additional information on installment agreements.

IDTVA-I (IPSU) Employees ONLY - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY
  1. Input the TC 971 AC 522 MISC Field "OTHER" indicating receipt of identity theft documentation. For additional information see IRM 25.23.2.3.7, Marking Taxpayer Accounts When Accepting Identity Theft Claims, AND follow table below:

    If And Then
    The taxpayer filed Form 14039 And there is a TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is no tax account issue Input a TC 971 AC 506, BOD: WI Program: AM Tax Admin Code: OTHER and a Secondary date of 01252016. Issue a 4403C letter include paragraph C and I (insert the language below in paragraph I):"We have verified your claim of identity theft and placed an identity theft indicator on your account so we can monitor activity and help prevent future fraud. No further action is needed on your part. To further protect you, we will issue you an IP-PIN by mail in December. You will need an identity protection PIN to file your tax returns in the future."

    Caution:

    IDTVA-I (IPSU) will not input TC 971 AC 504 as these taxpayers are blocked from on-line applications.
    The taxpayer filed Form 14039 And there is a TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is an account issue IDTVA-I will route the case to the appropriate function for action. The function resolving the tax issue will input a TC 971 AC 506, BOD: WI Program: AM Tax Admin Code: OTHER and a Secondary date of 01252016 and issue the appropriate closing letter as indicated in the table below for employees resolving tax-related issues.
All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY
  1. For case resolution, follow the chart below:

    If And Then
    If working a case and there is an existing TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is no tax account issue Route the claim to ICT/IDTVA-I.

    Note:

    Reassign the case to IDTVA if controlled on CIS. Refer to the Accounts Management Site Specialization Temporary Holding Numbers for the appropriate IDRS number.

    If working a case and there is an existing a TC 971 AC 505 with incident numbers IR20160127510, IR20160127513 or IR20160614508 There is an account issue Follow normal case resolution procedures. Review the account for a TC 971 AC 522, if none exists, input the TC 971 AC 522 with MISC Field "OTHER" indicating receipt of the claim. Refer to IRM 25.23.2.3.7,Marking Taxpayer Accounts When Accepting Identity Theft Claims. Input a TC 971 AC 506, BOD: WI Program: AM Tax Admin Code: OTHER and a Secondary date of 01252016.

    Caution:

    Do not input TC 971 AC 501 as these taxpayers are blocked from on-line applications. An existing TC 971 AC 501 will not have a negative impact.

    As directed in IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506. Use the 239C letter to apprise the taxpayer of actions taken and include paragraphs:
    • A

    • I, J, L, and M (as applicable to the tax related identity theft case)

    • O, with fiil-in “We verified your claim of identity theft and placed an identity theft indicator on your account. You will need an Identity Protection PIN (IP-PIN) to file your returns in the future. You will receive your IP-PIN in a notice from us in December of each year.”

    • 3 with fill-in “Publication 5027, Identity Theft Information for Taxpayers, provides information to identity theft victims. You can access it thru our website, www.irs.gov.”

    • 8

    • 9

    • %

    Note:

    The 4674C may be used instead of the 239C as paragraphs may be selected that do not provide online access references.

    This victim notification letter will include information about:
    • Information about identity theft prevention.

    • Information about identity theft related resources.

    • Information about the identity theft indicator placed on his or her account.

    • Information about the IP-PIN.

    Caution:

    DO NOT use a 4310C letter to notify these taxpayers case resolution as these letters contain links to the on-line applications to which these taxpayers are blocked from using.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement. Refer to IRM 5.14.5.2, Streamlined Installment Agreements, for additional information on installment agreements.

Free Application for Federal Student Aid (FAFSA) Incident

  1. Between January, 2017 and March, 2017, third parties gained unauthorized access to the IRS Data Retrieval Tool (DRT) that is accessed from the Department of Education’s Free Application for Federal Student Aid (FAFSA) website to retrieve tax information for student loan applications and repayment plans, using taxpayer Personally Identifiable Information (PII) they obtained through sources outside IRS. The individuals can be identified by reviewing ENMOD/IMFOLE for a TC 971 AC 505 with breach number CR20170228961 and a secondary date of 01/31/2017. A history item was placed on IDRS.

  2. DRT is now available. The individuals whose information may have been accessed were sent letters (4281C). The letter notified these individuals that their personal identity information and tax data could be at risk. It also provided guidance on how to enroll for free identity theft protection for one year through Equifax and how to obtain an Identity Protection Personal Identification Number (IP-PIN).

    Note:

    Affected accounts are NOT blocked from on-line applications. These taxpayers will be able to log into on-line accounts and services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA)

  3. If you receive questions about these letters, advise individuals to file as normal (if applicable) and follow the instructions in the letter they received. For additional guidance, see IRM 10.5.4, Incident Management Program.

FAFSA Incident-CP302

  1. Each day a taxpayer’s account in the IRS Data Retrieval Tool (DRT) is accessed, the IRS will issue a CP302 to notify the taxpayer.

  2. If the taxpayer calls about the receipt of a CP302, explain that they will receive a notice per day each day the DRT is accessed using their information. Probe the caller to ascertain if the taxpayer, or their parent, guardian, representative, etc. made the access.

  3. If the caller states that the access was not made by them, or by anyone on their behalf, take the following actions:

    1. Advise the taxpayer of actions to take to protect their identity. See IRM 25.23.2.2.1, Taxpayer Interaction, for a list of actions.

    2. TC 971 AC 522 with MISC Code of OS PHSH IRSID and

    3. TC 971 AC 504 with MISC Code of NKI

    Note:

    Use the date of one day prior to contact as the Secondary Date for the TC 971 input on both AC 522 and AC 504.

    Caution:

    Take these actions on the account only if the caller is sure the access was not made by taxpayer or anyone on their behalf for example their parent, guardian or representative, etc.

Incident Numbers CR20170421067 and LR20170421067

  1. Recently, third parties gained unauthorized access to an online application using taxpayer Personally Identifiable Information (PII) they obtained through sources outside IRS. You can identify these taxpayers by reviewing ENMOD/IMFOLE for a TC 971 AC 505 with the breach number CR20170421067 or LR20170421067 with an Incident Date of 3/30/2017. Letter 4281C was issued to the taxpayers impacted by the incident

  2. If you receive a Form 14039 from these individuals, input a TC 971 AC 506 WI AM OTHER, to include the taxpayers in the IP-PIN population. Issue Letter 4674C per IRM 25.23.2.10.2 Get Transcript Incident - Tax Related Case Resolution. Do not input the AC 504.

    Note:

    Affected accounts are blocked from on-line applications. These taxpayers will NOT be able to log into on-line accounts or services (for example: Get Transcript, IP-PIN and Online Payment Agreement (OPA) due to the fraud incident. As access to OPA is not available, CSRs will assist taxpayers who wish to establish an installment agreement. Refer to IRM 5.14.5.2, Streamlined Installment Agreements, for additional information on installment agreements.

Form 8821 Incident

  1. These accounts are identified by breach number IR20170425509. The taxpayers affected by this incident have been notified via Letter 4281C.

  2. The majority of the accounts do not have their online account blocked, but there are a few whose on-line accounts are currently blocked from another incident, for example Get Transcript or Efile PIN.

  3. If you are contacted by one of these taxpayers, verify all TC 971 AC 505s listed on the account to see if their account may be blocked if they are involved in multiple incidents.

  4. The victims with blocked accounts were told that they need to file a Form 14039 if they would like to obtain an IP-PIN. Those taxpayers not blocked were sent instructions to OPT-IN for an IP-PIN on-line if they so choose.

Identity Theft Liaison Responsibilities

  1. An Identity Theft (IDT) Functional Liaison is representative of their function. The Liaison’s name, contact phone and fax number are listed on the IDT Functional Liaison listing located on Servicewide Electronic Research Program (SERP). IDTVA Employees refer to this listing to identify a point of contact (POC) for referral purposes.

  2. Processes which require referrals from the IDTVA IPSU staff to the functions for action include:

    • Form 14103, Identity Theft Assistance Request (ITAR), which is used when an identity theft related case meets IPSU criteria (see IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) – General

    • Form 14027-B, Identity Theft Case Referral, which is currently used exclusively for Global Review (GRVW) referrals

  3. IDT Liaisons will receive cases by secure e-mail or through CIS.

  4. IDT Liaisons will process identity theft referrals as priority. All cases involving identity theft will receive priority treatment. This includes functions not located within the IDTVA framework.

Function Responsibility for Identity Theft Assistance Request (ITAR) Referrals to IDTVA-I (IPSU)

  1. As part of the IDTVA Program, the IDTVA-I (IPSU) Team will generally assist taxpayers whose situations meet TAS criteria 5 - 7 AND involve identity theft. Applicable cases are considered to meet IPSU criteria and MUST be referred to IDTVA-I using Form 4442 Inquiry Referral, using the Accounts Management System (AMS) if available.

    Exception:

    If the taxpayer requests TAS assistance, is facing economic burden (TAS criteria 1-4), or the request meets one of the eight exceptions listed in (2) of IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) - General Information, then refer the case to TAS using procedures found in IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.

  2. Before sending an ITAR referral to IDTVA-I the following actions are required:

    • Review the account to determine if the case is eligible for referral to IDTVA-I. Refer to IRM 25.23.3.2.5, Identity Theft Assistance Request (ITAR) - General Information and IRM 13.1.16.11.3, Criteria 5-7 Identity Theft Cases Eligible for Referral to Identity Protection Specialized Unit (IPSU).

    • Review ENMOD/IMFOLE to determine if the entity module has already been marked with a TC 971 AC 522. If the account has not been flagged with an identity theft tracking indicator for the year in question, mark the account as appropriate. See IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related identity Theft – IMF Identity Theft Indicators and IRM 25.23.2.3, Identity Theft Claims – General Guidelines, for assistance in determining the correct identity theft tracking indicator.

  3. Notify the taxpayer by sending Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, or other applicable letter to inform the taxpayer he/she can expect contact from IDTVA-I within 10 business days from the date of receipt.

    Note:

    Refer to IRM 21.3.3.4.2.1, Use of 86C Letter- Referring Taxpayer Inquiry/Forms to Another Office.

Functional Responsibilities in Receipt of Identity Theft Assistance Requests (ITAR) Referrals Form 14103
  1. Employees will receive Form 14103, Identity Theft Assistance Request (ITAR), referral through their designated IDT Liaisons from an IDTVA-I employee when they are working to resolve a tax related issue involving identity theft whether or not there is an open control for the case on IDRS or CIS.

    Note:

    Sites not specialized in ID theft will return the Form 14103 to IDTVA-I after completing the preliminary research in IRM 25.23.4.5, Preliminary Research - Preparing the Case for Resolution, and reassigning the IDT9/IDS9 case to IDRS# 1174021564 and, if compliance related activities are identified on the account, use the applicable Category Code and Priority Code 1.

  2. IDTVA Employees can identify cases related to Form 14103 on AMS/CIS and their Automated Age Listing (AAL) by the presence of category code IDT9/IDS9 (Category Code updated by IDTVA-I) or Priority Code 1 for IDTVA cases with compliance activity.

  3. Employees will follow the step chart below when a Form 14103 is received.

    Step Action
    1 Acknowledge receipt of the Form 14103, Identity Theft Assistance Request (ITAR), within 5 business days via secured e-mail or using the fax number in Section II, Box 3 of the Form 14103.

    Note:

    Include your full name (first and last) as well as your standard employee identifier (SEID).

    2 Process Form 14103 cases as priority (similar to TAS OARs).
    3 Review Section IV, Specific Assistance Requested, and determine whether the recommended action is appropriate and the requested completion date is reasonable.
    4 Contact the IDTVA-I employee shown in Section II if there are questions regarding the recommended action or if additional time is required. The function and IDTVA-I employees should reach an agreement on the substantive case issues and recommended actions as well as the follow-up and completion dates.

    Reminder:

    Be sure to contact IDTVA-I prior to the expiration of the negotiated completion date. If the negotiated completion date entered in Section IV, boxes 3 and 4 has elapsed, then a status update and new completion date must be provided to IDTVA-I every 30 days.

    5 Provide the taxpayer with the required interim updates and official closing documents as directed in the functional IRM and provide those same copies to the IDTVA-I caseworker in the closing status update.
    6 Provide the IDTVA-I employee with a status update every 30 days. The status update can be made by:
    • Sending a secure e-mail to IDTVA-I employee,

      Note:

      If responding by secure e-mail, you must include your full name (first and last) as well as your standard employee identifier (SEID)

    • Entering a note on the linked CIS cases, or

      Example:

      “Additional information from taxpayer needed, Letter 4475C issued”, or “TC 150 requested from files” etc.

      Note:

      Entering CIS case notes with periodic and required status updates assists the IDTVA-I employee in responding to phone inquiries from the taxpayer and by providing a better status update on their identity theft related case

    • Sending a fax (if the two options above are not available)

    7 Complete Sections V and VI of Form 14103 when the tax-related issue is resolved and all adjustment actions have been input. Enter CIS case note: “Form 14103 Sections V and VI completed”
    8 Return the Form 14103 to the IDTVA-I employee with Section V and VI completed via CIS, or fax when CIS is not available.

    Note:

    Return of the Form 14103 can be initiated by the employee or liaison.

    Note:

    If the ITAR control was closed to TAS because the taxpayer is experiencing an economic burden, the IDT9/IDS9 control must be reverted back to the original category control and the Form 14103 referral returned to IDTVA-I employee.

Functional Responsibilities in Receipt of Global Review (GRVW) Referrals
  1. Employees will receive Form 14027-B, Identity Theft Case Referral, through their designated IDT Liaisons to resolve a tax related issue involving identity theft whether or not there is an open control for the case on IDRS or CIS.

  2. Employees can identify cases related to Form 14027-B on AMS/CIS and their Automated Age Listing (AAL) by a multiple control with a case controlled with Category Code GRVW and a Priority Code 1 on the IDT control.

  3. Use the step chart below when a Form 14027-B is received.

    Step Action
    1 Review sections I and II of F14027-B to ensure the tax related identity theft issue has been forwarded to the correct IDT liaison.
    2 Acknowledge receipt of the form within 5 business days by filling out Section V on page 2 of the form and notating receipt of Form 14027-B on IDRS or AMS.

    Exception:

    SB/SE Field examiners do not use IDRS or AMS. These examiners use their normal case history worksheet to notate receipt of Form 14027-B.

    3 Provide status updates to the taxpayer (interim letters or phone calls).
    4 Record periodic status updates or enter history items (every 45 days) on IDRS or AMS.
    5 Complete Form 14027-B through VIII when the case is resolved and closed.
    6 Return the completed Form 14027-B to the IDTVA-I caseworker through the IDT Liaison, when applicable, upon resolution of the case.

Acronyms and Definitions

The following tables describe the terms and acronyms used for the TC 971 AC 501, 504, and 506 identity theft indicator codes. The three tables are: 1) BOD/Function, 2) Program Name, and 3) Tax Administration Source. Not all Tax Administration Source Codes are available to all BOD/Functions. For specific BOD/Function information, refer to the applicable Exhibit for the Action Code, for example TC 971 AC 501 or AC 506.

  1. BOD/Function

    Term/Acronym Description
    AP Appeals
    CI Criminal Investigation
    LBI Large Business & International
    IT Information Technology
    OS Operations Support
    PPDS Identity Protection Strategy & Oversight formerly Privacy, Governmental Liaison & Disclosure
    SBSE Small Business / Self-Employed
    TAS Taxpayer Advocate Service
    WI Wage & Investment
  2. Program Name

    Term/Acronym Description
    ACS Automated Collection System
    AM Accounts Management (IRS-identified identity theft)
    AMADJ Accounts Management (TP-identified identity theft)
    AMTAP Integrity & Verification Operations (IVO) formerly Accounts Management Taxpayer Assurance Program (AMTAP)
    AP Appeals
    ASFR Automated Substitute for Return
    AUR Automated Underreporter
    CA TAS Case Advocate
    CFBALDUE SB/SE: Field Collection - Taxpayer Delinquency Accounts
    CFDELRET SB/SE: Field Collection - Taxpayer Delinquency Investigations
    CONGINQ Congressional Inquiry
    CORR SB/SE Correspondence Exam
    CSCO Compliance Services Collection Operations
    CSIRC Computer Security Incident Response Center
    EXAM W&I Correspondence Exam
    FA Field Assistance
    FO Field Office
    FLDEXAM Field Exam
    FLDADV Field Advisory
    FLDINSLV Field Insolvency
    IVO Integrity & Verification Operations
    LBI Large Business & International
    OPIP Identity Protection Strategy & Oversight
    PHSH Phishing
    PREREF Pre-Refund Program
    PRP Pre-refund Program
    RC Refund Crimes
    RFND Refund Scheme
    RICS Return Integrity & Compliance Services
    SP Submission Processing
    TDI Tax Delinquency Investigation
    TEFRA Tax Equity and Fiscal Responsibility Act of 1982
    WHC Withholding Compliance
  3. Tax Administration Source

    Note:

    The new MISC codes that contain an “M” next to them identify cases requiring a manual 4402C instead of a new systemic notice (CP01C (English) and CP701C (Spanish)). The new notices will be issued once the TC 971 AC 504 and original MISC codes posts to the TP’s account.

    Term/Acronym Description
    ACCT and ACCT-M Non-tax-related issues: One or more personal accounts have been opened under the victim's identity or the victim reported questionable account activity.
    BOTH and BOTH-M Non-tax-related issues: Both EMPL and ACCT
    DDb Used by RICS Pre-Refund for cases selected by DDb filter and identified as an Identity Theft return
    DECD Taxpayer is deceased
    EAFAIL Non-tax-related issue: Used exclusively by RICS for situations where the Electronic Filing PIN (EFP) Application has been linked to a telephone line which has been blocked after a series of attempts to secure a PIN
    EMPL and EMPL-M Non-tax-related issue: Victim's SSN Used for Employment.
    ERC027 Primary Taxpayer under 14 years old
    IDT Used by RICS Pre-Refund for CI Cases where a bad return was filed under the taxpayer’s SSN
    INCOME Identity theft identified and substantiated due to an underreporting of income
    IRSID During the normal course of business, the IRS suspects identity theft may have occurred and the case is not yet resolved.
    MULTFL Identity theft identified and substantiated due to two or more tax returns filed for one taxpayer
    INCMUL Identity theft identified and substantiated due to both underreporting of income and multiple filings
    NKI and NKI-M No known taxpayer impact
    NOFR Substantiated identity theft incidents where the victim does not have a filing requirement
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    OMMGB Valid return filed by the legitimate taxpayer who was previously identified as OMM
    OTHER Identity theft which cannot be identified as related to any existing Tax Administration Source types
    OTHER1 Used by Rics to identify an SSN where there is at least one good return filed with a valid address
    PNDCLM The taxpayer makes an initial claim of identity theft. They have not yet submitted their claim.
    PRISNR Taxpayer is incarcerated
    RFND Identity theft identified by the filing of a false return in order to obtain a refund
    SSA Used by RICS Pre-Refund for cases identified by SSA filters, but are confirmed Identity Theft cases
    RPM1, RPM2, RPM3, RPM4 Used by AM and Compliance functions to flag Return Preparer Misconduct cases. Employees will notify these taxpayers that the Service will provide identity protection via the IP-PIN as they are vulnerable because of their dealings with a bad preparer.
    SPCL1 Applied when there is at least one incident of failed High-Risk Disclosure during a phone call and a taxpayer is requesting their Adjusted Gross Income (AGI) or Self Select PIN (SSP) so that they can e-file their tax return
    SPCL2 TC 971 AC 504 SPCL2 will be applied to a taxpayer's SSN when the taxpayer alleges BMF ID theft that is affecting their SSN.
    Prior to January 2015, used by AM and Compliance functions to flag Return Preparer Misconduct cases. Employees will notify these taxpayers that the Service will provide identity protection via the IP-PIN as they are vulnerable because of their dealings with a bad preparer.
    UNAUDP Unauthorized use of a dependent person
    UNWORK An identity theft claim has been received but has not been resolved yet. See Exhibit 25.23.1 Glossary of Identity Protection Terms and Definitions for more information.
    UPC147 Input on the identified IRSN corresponding to the non-legitimate unpostable return with UPC147 RC 1 as identified and determined by SP
    UPCMUL Input on true SSN owner’s account when a non-legitimate unpostable return with UPC147 RC 1 has been filed using the taxpayer’s SSN as identified and determined by SP

IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501

The exhibit below demonstrates how AUR inputs a TC 971 AC 501 when the identity theft involved an underreporting of income.

This is an Image: 67662001.gif
 

Please click here for the text description of the image.

Input instructions for TC 971 AC 501 are as follows:

  1. Obtain the following information:

    • Entity - SSN;

    • Business Operating Division (BOD)/Function (See Exhibit 25.23.2-1, Acronyms and Definitions;

    • Program Name (See table in (7) below);

    • Tax Administration Source (See Exhibit 25.23.2-1, Acronyms and Definitions; and

    • Tax Year affected by identity theft (Secondary-DT Field).

      Note:

      The tax year affected by the identity theft cannot be the current year. For example, the taxpayer gave you a valid claim during the current year, for a 2012 tax year issue. You have resolved the issues, verified and updated the address. You will input TC 971 AC 501 for tax year 2012 by entering 12312012 in the Secondary-DT field on FRM77

  2. The tables provided below display the available Tax Administration Source Codes by BOD/Function(Program). Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function (Program).

  3. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD (SSN), then press ENTER;

    • Enter CC REQ77:

    • CC FRM77 is displayed for the selected SSN.

    Caution:

    The Secondary Date field on CC REQ77 is limited to the current calendar year (cannot be the current day or any future date) and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 5XX on the oldest allowable year and leave an AMS history and\or a history on ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: H,AC5XX-2007 and input the TC 971 AC 5XX on the oldest allowable year allowed by programming).

  4. Enter the TC 971 AC 501

    • Enter the TC with 971;

    • TRANS-DT is auto populated with the current date;

    • Enter SECONDARY-DT (enter the tax year affected by the identity theft incident in the format MMDDYYYY);

    • Enter MISC (enter your specific BOD/Function, Program Name, and Tax Administration Source, see Exhibit 25.23.2-1, Acronyms and Definitions; and

    • After REMARKS, enter "IDENTITY THEFT" .

  5. Tax Administration Source Codes for use with TC 971 AC 501 - Taxpayer Identified Case Closure

    Note:

    Taxpayers affected by Get Transcript incident will be flagged with TC 971 AC 506 WI AM OTHER. You can identify these taxpayers by reviewing CC ENMOD for a TC 971 AC 505 IR20150521512, TC 971 AC 505 IR20150521555 or TC 971 AC 505 IR20150521556

    Tax Administration Source Code Definition of Tax Administration Source Code
    ALTRD Identity theft identified and substantiated due to an altered return
    INCOME Identity theft identified and substantiated due to an underreporting of income
    MULTFL Identity theft identified and substantiated due to two or more tax returns filed for one taxpayer
    INCMUL Identity theft identified and substantiated due to both underreporting of income and multiple filings
    OTHER Identity theft which cannot be identified as related to any existing Tax Administration Source types
    NOFR Identity theft identified by the filing of a false return in order to obtain a refund and the victim does not have a filing requirement
    DECD Deceased taxpayer
    PRISNR Incarcerated Taxpayer
  6. Do not attempt to use a Tax Administration Source Code that your BOD/Program (Function) is not profiled to use. The following table identifies the BOD/Programs and applicable Tax Administration Source Codes. Refer to Exhibit 25.23.2-1, Acronyms and Definitions, for definitions of the Program Name codes.

  7. Appeals is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    AP AP INCOME, MULTFL, INCMUL, OTHER, NOFR, and DECD
  8. Criminal Investigation is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    CI FO INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    CI RC INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
  9. Large Business & International is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    LBI LBI INCOME, INCMUL, MULTFL, OTHER, NOFR, PRISNR, and, DECD
  10. IT is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    MITS CSIRC DECD, OTHER, NOFR, and PRISNR
  11. IPSO is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    PPDS CONGINQ INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    PPDS OPIP INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
  12. SBSE is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    SBSE CFBALDUE ALTRD, INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE CFDELRET ALTRD, INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE FLDEXAM ALTRD, INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE FLDADV INCOME, MULTFL, INCMUL, OTHER, NOFR, and DECD
    SBSE FLDINSLV INCOME, MULTFL, INCMUL, OTHER, NOFR, and DECD
  13. W&I is profiled with the following codes:

    BOD Name Program Name TC 971 AC 501 Tax Administration Source Code
    WI ITVAA INCOME, MULTFL, INCMUL, OTHER and NOFR
    WI ITVAC INCOME, MULTFL, INCMUL, OTHER and NOFR
    WI IP ALTRD, DECD, INCMUL, INCOME, MULTFL, NOFR, OTHER, PRISNR, MISC1, MISC2, MISC3, MISC4 and MISC5
    WI RICS INCOME, MULTFL, OTHER, NOFR, PRISNR, and DECD
    WI PREREF INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The exhibit below demonstrates how ACS inputs a TC 972 AC 501 when they determine identity theft was indicated by IRS in error.

This is an Image: 67662002.gif
 

Please click here for the text description of the image.

Input instructions for TC 972 AC 501 are as follows:

  1. Obtain the following information:

    • Entity - SSN;

    • BOD/Function

    • Program Name (See (see Exhibit 25.23.2-1, Acronyms and Definitions );

    • Tax Year of the TC 971 AC 501 being reversed; and

      Note:

      The tax year must match the tax year of the TC 971 AC 501 that is being reversed.

    • Transaction date of the TC 971 AC 501 being reversed.

  2. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD SSN, then press ENTER;

    • Enter CC REQ77;

    • CC FRM77 is displayed for the selected SSN.

  3. Enter the TC 972 AC 501

    • Enter the TC with 972;

    • Enter TRANS-DT (enter the transaction date of the TC 971 AC 501 being reversed);

    • Enter SECONDARY-DT (enter the tax year of the TC 971 AC 501 being reversed in the MMDDYYYY format);

    • Enter MISC (Modify the Reason Code field with the reason for the reversal). Select the Reason code that reflects the reason for the reversal from the options below; and

    • Enter REMARKS (enter your remarks).

    Note:

    See Exhibit 25.23-2, IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501, (3) Caution for Secondary Date limitations and other necessary input. For more information on CC REQ77 see IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, or the Command Code Job Aid. The exhibit above also demonstrates

  4. Tax Administration Source Codes for use with TC 972 AC 501 - Reversal of TC 971 AC 501 - are as follows:

    TC 972 AC 501 Tax Administration Source Code Definition
    TPRQ The taxpayer requests the 971 be reversed.
    IRSERR The 971 was due to a typographical mistake or another internal mistake.
    IRSADM The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue.
    FALSE RESERVED
    OTHER The reason for the 971 reversal does not meet any of the reason descriptions above.
  5. The following tables describe the TC 972 AC 501 reason codes by BOD/Function and Program. Refer to Exhibit 25.23.2-1, Acronyms and Definitions, for definitions of the Program Name codes.

    Note:

    Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

  6. Appeals is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    AP AP TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  7. Criminal Investigation is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    CI FO TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    CI RC TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  8. Large Business & International (LB&I) is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    LBI LBI TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  9. IT is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    MITS CSIRC TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  10. The IPSO is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    PPDS CONGINQ TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    PPDS OPIP TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  11. Small Business Self Employed (SBSE) is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    SBSE CFBALDUE TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE CFDELRET TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE FLDEXAM TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE FLDADV TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE FLDINSLV TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  12. Taxpayer Advocate Service (TAS) is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    TAS TAS TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  13. Wage & Investment (WI) is profiled to use the following codes to reverse a TC 971 AC 501:

    BOD Name Program Name TC 972 AC 501
    Tax Administration Source Code
    WI FA TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI AM TPRQ
    WI IP TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI ITVAA TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI ITVAC TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI PRP TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI PREREF TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI RICS TPRQ, IRSERR, IRSADM, FALSE, and OTHER

IMF Only TC 971 AC 504

Important: Input of Action Code 504 for non-tax-related identity theft purposes is limited and reserved for use by IDTVA-I in W&I, Accounts Management and will reflect one of the following Miscellaneous Field Codes:

  • ACCT

  • ACCT-M

  • BOTH

  • BOTH-M

  • NKI

  • NKI-M

  • EMPL

  • EMPL-M

Note:

The new MISC codes contain an “M” next to them to identify cases requiring a manual 4402C instead of a new systemic notice (CP01C (English) and CP701C (Spanish)). The new notices will be issued once the TC 971 AC 504 and original MISC codes posts to the TP’s account.

The following Miscellaneous Field Codes are not limited to input by IDTVA-I employees:

  • SPCL1

  • SPCL2

  • EAFAIL

  • RPM1, RPM2, RPM3 AND RPM4

TC 971 AC 504 is displayed on IDRS command code ENMOD and consists of the following data elements:

Caution:

Taxpayers affected by Get Transcript incident who filed Form 14039, will be flagged with TC 971 AC 506 WI AM OTHER. You can identify these taxpayers by reviewing CC ENMOD for a TC 971 AC 505 IR20150521512 or TC 971 AC 505 IR20150521555

Caution:

CC REQ77 will accept an XREF EIN when an individual TP is reporting BMF Identity Theft.

TRANS-DT SECONDARY-DT MISC REMARKS
Input date of TC 971 AC 504 Date identity theft occurred (Use the date provided on the Form 14039 or additional information that is attached.).

Caution:

If applying the AC 504 using SPCL1, SPCL2, RPM1, RPM2, RPM3 AND RPM4, or EAFAIL use the tax year of the incident in the Secondary Date Field.

Caution:

See Exhibit 25.23-2, IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501, (3) Caution for Secondary Date limitations and other necessary input. For more information on CC REQ77 see IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, or the Command Code Job Aid.

Taxpayer impact. (See the Impact to Taxpayer table below.) Comments

Secondary Date Field is required on input of all TC 971 AC 504. Some taxpayers provide an incomplete incident date or no incident date at all. In these situations, follow as outlined below:

If Form 14039 THEN
Specifies an incident date that is complete Use the date provided on Form 14039.

Example:

The taxpayer indicates the ID theft occurred on October 15, 2013, the secondary date will reflect 10152013.

Indicates an incident date of only a month and year Use the first day of the month provided by the taxpayer on Form 14039.

Example:

The taxpayer indicates the ID theft occurred on October 2013, the secondary date will reflect 10012013.

Does not include an incident date. Use the IRS received date of the Form 14039.

Example:

The Form 14039 was received April 29, 2012, secondary date will reflect 04292012.

Impact to Taxpayer
Miscellaneous Field Codes Description
ACCT and ACCT-M IDTVA-I use only - Non-tax-related issues: One or more personal accounts have been opened under the victim's identity or the victim reported questionable account activity.
BOTH and BOTH-M IDTVA-I use only - Non-tax-related issues: Both EMPL and ACCT.
EMPL and EMPL-M IDTVA-I use only - Non-tax-related issues: Victim's SSN Used for Employment and/or Unemployment Insurance.
NKI and NKI-M IDTVA-I use only - Non-tax-related issues: No known impact has been identified by the taxpayer.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  • ≡ ≡ ≡

  • ≡ ≡ ≡

  • ≡ ≡ ≡

  • ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

IMF Only TC 972 AC 504 — Reversal of TC 971 AC 504

The miscellaneous field for TC 972 AC 504 reflects the reason for the reversal of TC 971 AC 504. See the TC 972 AC 504 Miscellaneous Field chart below for the reasons and values for the MISC field.

Reason Description Value
Taxpayer Request The taxpayer requests the 971 be reversed. TPRQ
Keying or Internal Error The 971 was due to a typographical mistake or other internal mistake. IRSERR
Internally Identified Negative Impact The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue. IRSADM
False Identity Theft Claim RESERVED FALSE
Other The reason for the 971 reversal does not meet any of the reason descriptions above. OTHER

IMF Only TC 971 AC 505 — IRS Data Loss Breaches

Important: Input of Action Code 505 is limited and reserved for use by PGLD personnel.

TC 971 AC 505 is displayed on IDRS command code ENMOD and consists of the following data elements:

TRANS-DT SECONDARY-DT MISC
TC 971 AC 505 input date Date the data loss incident occurred. Incident Reference Code number assigned to the data loss case. Usually this number begins with the literal "IR" and is followed by 11 numeric digits. For example: IR20080211034

IMF Only TC 972 AC 505 — Reversal of TC 971 AC 505

The miscellaneous field for TC 972 AC 505 reflects the reason for the reversal of TC 971 AC 505. See the following chart for reasons and values for the MISC field:

TC 972 AC 505 Miscellaneous Field
Reason Description Value
Keying or Internal Error The 971 was due to a typographical mistake or another internal mistake. IRSERR
Internally Identified Negative Impact The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue. IRSADM
Other The reason for the 971 reversal does not meet any of the above reason descriptions. OTHER

IMF Only TC 971 AC 506 — IRS Determined Tax-Related Identity Theft Case Closure

The exhibit below demonstrates how SP inputs a TC 971 AC 506 when resolving IRS-identified identity theft issue involving an unpostable.

This is an Image: 67662003.gif
 

Please click here for the text description of the image.

Input instructions for TC 971 AC 506 are as follows:

  1. Obtain the following information:

    • Entity - SSN;

    • Business Operating Division (BOD)/Function (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Program Name (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Tax Administration Source (See Exhibit 25.23.2-1, Acronyms and Definitions); and

    • Tax Year affected by identity theft.

      Note:

      The tax year affected by the identity theft cannot be the current year. For example, the taxpayer gives you a valid claim during the current year for a 2013 tax year issue. Input TC 971 AC 506 on tax year 2013 only.

  2. The tables provided below display the available Tax Administration Source Codes by BOD/Function (Program). Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function (Program).

  3. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD (SSN), then press ENTER;

    • Enter CC REQ77;

    • FRM77 is displayed for the selected SSN.

  4. Enter the TC 971 AC 506

    • Enter the TC with 971;

    • TRANS-DT is auto populated with the current date;

    • Enter SECONDARY-DT (enter the tax year affected by the identity theft incident in the format MM-DD-YYYY);

      Caution:

      See Exhibit 25.23-2, IMF Only TC 971 AC 501 — Taxpayer Initiated Identity Theft Case Closure (Tax-Related) - TC 971 AC 501, (3) Caution for Secondary Date limitations and other necessary input. For more information on CC REQ77 see IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A, or the Command Code Job Aid.

    • Enter MISC (enter your specific BOD/Function, Program Name, and Tax Administration Source; see the BOD/Function tables below); and

    • After REMARKS, enter "IDENTITY THEFT" .

    Note:

    See the illustration above, demonstrating how SP inputs a TC 971 AC 506 after resolving an unpostable 147 RC1 case.

  5. Tax Administration Source Codes for use with TC 971 AC 506 - IRS Determined Case Closure

    Note:

    Taxpayers affected by Get Transcript incident who filed Form 14039, will be flagged with TC 971 AC 506 WI AM OTHER. You can identify these taxpayers by reviewing CC ENMOD for a TC 971 AC 505 IR20150521512, TC 971 AC 505 IR20150521555, or TC 971 AC 505 IR20150521556.

    TC 971 AC 506 Tax Administration Codes Definition of Tax Administration Source Code
    INCOME Identity theft identified and substantiated due to an underreporting of income
    MULTFL Identity theft identified and substantiated due to two or more tax returns filed for one taxpayer
    INCMUL Identity theft identified and substantiated due to both underreporting of income and multiple filings
    OTHER Identity theft which cannot be identified as related to any existing Tax Administration Source types or when TP files F 14039 in response to EPSS disabled account to put TP in CP01A population.
    OTHER1 Used exclusively by RICs to identify an SSN where there is either:
    • Used to mark accounts that have been identified as having previous tax-related identity theft situation, but have a good taxpayer involved with a verified good address of record. These markers will receive the IP-PIN notice

    OTHER2 FS 2015- Used Exclusively by RICS to issue the CP01F IP-PIN OPT-In Notice for the TC 971 504 EAFAIL population, as well as TINS identified by CI to be compromised by a data breach when the posted return was verified as Non-IDT based on IRP and the zip code on the return matches the current year IRP address.
    LIST1 Used exclusively by RICs to accounts referred by Criminal Investigation (CI) involving data breach lists. Also includes high risk (e.g. PII, hacked preparer) and imminent lists such as Traffic Stops, Search Warrants, and Informant Leads, with no returns filed.
    NOFR Identity theft identified by the filing of a false return in order to obtain a refund and the good taxpayer has no filing requirement
    DECD Deceased taxpayer
    PRISNR Incarcerated Taxpayer
    NKI and NKI-M Used by RICS Pre-Refund for CI cases with no known impact on taxpayer account
    IDT Used by RICS Pre-Refund for CI Cases where a bad return was filed under the taxpayer’s SSN
    DDb Used by RICS Pre-Refund for cases selected by DDb filter and identified as an Identity Theft return
    SSA Used by RICS Pre-Refund for cases identified by SSA filters, but are confirmed Identity Theft cases
    OMM Previously used by RICS Pre-Refund for cases selected by DDb Filter that are OMM Cases.
    UPCMUL Input on true SSN owner’s account when a non-legitimate unpostable return with UPC147 RC 1 has been filed using the taxpayer’s SSN as identified and determined by SP
    UPC147 Input on the identified IRSN corresponding to the non-legitimate unpostable return with UPC147 RC 1 as identified and determined by SP
    OMMGB Valid return filed by the legitimate taxpayer who was previously identified as OMM
    ERC027 Primary Taxpayer under 14 years old
  6. Do not attempt to use a Tax Administration Source Code that your BOD/Program (Function) is not profiled to use. The following table identifies the BOD/Programs and applicable Tax Administration Source Codes. Refer to Exhibit 25.23.2-1, Acronyms and Definitions, for definitions of the Program Name codes.

  7. The following BODS are not profiled to use TC 971 AC 506: Appeals, TAS, LB&I, and IT.Important: Input of Action Code 506 is limited and reserved for use by designated functions. The BOD Tables below illustrate only those Functions/Programs authorized to use TC 971 AC 506.

    Note:

    At present, W&I Field Assistance (FA) is not profiled for AC 506. Until further notice when resolving IRS determined cases, W&I FA will use the following:
    BOD: WI
    Program: AM
    Tax Administration Source Codes: INCOME, and OTHER.

  8. Criminal Investigation is profiled to use TC 971 AC 506 as follows:

    BOD Name Program Name TC 971 AC 506 Tax Administration Source Code
    CI PHSH Field intentionally left blank
    CI RFND Field intentionally left blank
    CI OTHER Field intentionally left blank
    CI RC PRISNR
    CI RC DECD
  9. SBSE is profiled to use the following codes:

    BOD Name Program Name TC 971 AC 506 Tax Administration Source Code
    SBSE CFBALDUE INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE CFDELRET INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE FLDEXAM INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE FLDADV INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
    SBSE FLDINSLV INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR, and DECD
  10. W&I is profiled with the following codes:

    BOD Name Program Name TC 971 AC 506 Tax Administration Source Code
    WI AM OTHER
    WI IP DECD, INCMUL, INCOME, MULTFL, NOFR, OTHER, PRISNR, MISC1, MISC2, MISC3, MISC4 and MISC5
    WI ITVAA INCMUL, INCOME, MULTFL, NOFR, OTHER and PRISNR
    WI ITVAC INCMUL, INCOME, MULTFL, NOFR, OTHER and PRISNR
    WI IVO DECD, OTHER, PRISNR and RFND
    WI PRP DDB, DECD, IDT, INCMUL, INCOME, LIST1, LIST2, LIST3, LIST4, LIST5, LIST6, MULTFL, NKI, NOFR, OMM, OTHER, OTHER1, OTHER2, OTHER3, OTHER4, OTHER5, PRISNR and SSA
    WI RICS INCOME, MULTFL, INCMUL, OTHER, NOFR, PRISNR,
    WI SP INCOME, INCMUL, MULTFL, OTHER, NOFR, DECD, PRISNR, EC029, UPC147, and UPCMUL

IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified

The illustration below demonstrates how Accounts Management reverses a TC 971 AC 506 using a TC 972 AC 506.

This is an Image: redimage.gif
 

Input instructions for TC 972 AC 506 are as follows:

  1. Obtain the following information:

    • Entity - SSN;

    • BOD/Function (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Program Name (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Tax Year of the TC 971 AC 506 being reversed; and

      Note:

      The tax year must match the tax year of the TC 971 AC 506 that is being reversed.

    • Transaction date of the TC 971 AC 506 being reversed.

  2. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD SSN, then press ENTER;

    • Enter CC REQ77;

    • FRM77 is displayed for the selected SSN.

  3. Enter the TC 972 AC 506

    Exception:

    If the year in question being reversed is older than the current calendar year minus 7 years, CC REQ77 will not accept the year. Document AMS or your case history if you do not have AMS access to reflect identity theft did not actually occur in the year reflected on the taxpayer's entity.

    • Enter the TC with 972;

    • Enter TRANS-DT (enter the transaction date of the TC 971 AC 506 being reversed);

    • Enter SECONDARY-DT (enter the tax year of the TC 971 AC 506 being reversed in the MMDDYYYY format);

    • Enter MISC (Modify the Reason Code field with the reason for the reversal). Select the Reason code that reflects the reason for the reversal from the options below; and

    • Enter REMARKS (enter your remarks).

    Note:

    Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

  4. Tax Administration Source Code is entered into the Miscellaneous field and displays the reason for the reversal. See TC 972 AC 506 Miscellaneous Field chart below for reasons and values for the MISC field:

    TC 972 AC 506 Tax Administration Source Code Definition
    TPRQ The taxpayer requests the 971 be reversed.
    IRSERR The 971 was due to a typographical mistake or another internal mistake.
    IRSADM The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue.
    FALSE RESERVED
    OTHER The reason for the 971 reversal does not meet any of the reason descriptions above.
  5. The following BODS are not profiled to use TC 972 AC 506: Appeals, TAS, LB&I, and IT.

  6. The following tables describe the TC 972 AC 506 reason codes by BOD/Function and Program. Refer to Exhibit 25.23.2-1, Acronyms and Definitions, for definitions of the Program Name codes.

    Note:

    Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

  7. Criminal Investigation is profiled to use TC 972 AC 506 as follows:

    BOD Name Program Name TC 972 AC 506
    Tax Administration Source Code
    CI OTHER TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    CI PHSH TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    CI RC TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    CI RFND TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  8. Operations Support (OS) is profiled to use TC 972 AC 506 as follows:

    BOD Name Program Name TC 972 AC 506
    Tax Administration Source Code
    OS PIPDS TPRQ, IRSERR, IRSADM, FALSE, and OTHER
  9. Small Business Self Employed (SBSE) is profiled to use TC 972 AC 506 as follows:

    BOD Name Program Name TC 972 AC 506
    Tax Administration Source Code
    SBSE CFBALDUE TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE CFDELRET TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    SBSE FLDEXAM TPRQ, IRSERR, IRSADM, OTHER, and FALSE
    SBSE FLDADV TPRQ, IRSERR, IRSADM, OTHER, and FALSE
    SBSE FLDINSLV TPRQ, IRSERR, IRSADM, OTHER, and FALSE
  10. Wage & Investment (WI) is profiled to use TC 972 AC 506 as follows:

    BOD Name Program Name TC 972 AC 506
    Tax Administration Source Code
    WI IP TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI IVTAA

    Note:

    Must be input as IVTAA. This was a clerical error in programming. It will be corrected in January, 2019.

    TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI IVTAC

    Note:

    Must be input as IVTAC. This was a clerical error in programming. It will be corrected in January, 2019.

    TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI AM TPRQ
    WI IVO TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI RICS TPRQ, IRSERR, IRSADM, FALSE, and OTHER
    WI SP TPRQ, IRSERR, IRSADM, and FALSE

IMF Only TC 971 AC 522 Tax-Related Identity Theft, Case Status (Initial Claim/Suspicion)

The exhibit demonstrates how AUR inputs a TC 971 AC 522 when the taxpayer initially asserts identity theft.

This is an Image: 67662005.gif
 

Please click here for the text description of the image.

Input instructions for TC 971 AC 522 are as follows:

  1. Obtain the following information:

    • Entity - SSN;

    • BOD/Function (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Program Name (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Tax Administration Source (See Exhibit 25.23.2-1, Acronyms and Definitions); and

    • Tax Year affected by identity theft.

      Note:

      The tax year affected by the identity theft cannot be the current year. For example, the taxpayer submits a valid claim during the current year, for a 2014 tax year issue. Input TC 971 AC 522 on tax year 2014 only and not on the current year.

      Caution:

      The Secondary Date field on CC REQ77 is limited to the current calendar year and 7 prior years. The secondary date field will not allow the input of any date outside that range. If the year in question is earlier than the oldest allowable year, input the TC 971 AC 5XX on the oldest allowable year and leave an AMS history and\or a history on ENMOD indicating which year was affected by identity theft. For example, if the year affected by identity theft was 2007, leave the following history on ENMOD/AMS as applicable: H,AC5XX-2007 and input the TC 971 AC 5XX on the oldest allowable year allowed by programming).

  2. The tables provided below display the available Tax Administration Source Codes by BOD/Function (Program). Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function (Program).

    Exception:

    See “NOTE” under Charts below for BOD/Function for Tax Administration Codes: UNWORK & IRSID.

  3. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD SSN, then press ENTER;

    • Enter CC REQ77;

    • FRM77 is displayed for the selected SSN.

  4. Enter the TC 971 AC 522

    • TC> Enter the TC with 971;

    • TC971/151-CD> Enter 522

    • TRANS-DT is auto-populated with the current date;

    • Enter SECONDARY-DT (enter the tax year affected by the identity theft incident in the format MMDDYYYY);

      Note:

      If the taxpayer is reporting more than one year affected by identity theft, the Secondary-DT field will reflect the tax year affected by identity theft.

    • Enter MISC (enter your specific BOD/Function, Program Name, and Tax Administration Source) see Exhibit 25.23.2-1, Acronyms and Definitions, and

    • After REMARKS, enter "IDENTITY THEFT" .

  5. Tax Administration Source codes for use with TC 971 AC 522 – Identity Theft Account Status:

    TC 971 AC 522 Tax Administration Source Code Definition
    PNDCLM The taxpayer has made an allegation of identity theft by telephone, has filed a return with a claim attached or has sent a reply to a Compliance function alleging identity theft without a Form 14039 or police report.
    IRSID During the normal course of business, the IRS suspects identity theft may have occurred and the case is not yet resolved.
    NODCRQ Beginning in 2015, used in conjunction with BOD PPDS and Program OPIP (TC 971 AC 522 PPDS OPIP NODCRQ) to identify/track on-line accounts and EPSS accounts disabled due to identity theft.
    Prior to 2015, NODCRQ was applied when the taxpayer claimed identity theft and there was a posted TC 971 AC 501/ 506.
    UNWORK An Identity Theft Claim ( see Exhibit 25.23.2-1, Acronyms and Definitions) has been received but has not been resolved yet.

    Note:

    Campus Compliance functions will only refer cases with F14039 or a police report, use this Tax Source only if one of them have been received.

  6. The tables provided below display the available Tax Administration Source Codes by BOD/Function and Program. Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

  7. Appeals (AP) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    AP AP ALTRD, INCMUL, INCOME, IRSID, MULTFL, NODCRQ, NOFR, OTHER, PNDCLM and UNWORK
  8. Criminal Investigation (CI) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    CI FO ALTRD, BOTH, INCMUL, INCOME, MULTFL, NOFR and OTHER
    CI RC ALTRD, DECD, INCMUL, IRSID, INCOME, MULTFL, NOFR, UNWORK and OTHER
  9. Large Business & International (LB&I) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    LBI LBI INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
  10. IT is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    MITS CSIRC ALTRD, NOFR and OTHER
  11. Operations Support (OS) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    OS PHSH NODCRQ, IRSID and UNWORK
  12. Small Business Self Employed (SBSE) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    SBSE ACS PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE ASFR PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE AUR PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE CFBALDUE ALTRD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    SBSE CFDELRET ALTRD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    SBSE CORR PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE CSCO PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE FLDADV INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    SBSE FLDEXAM ALTRD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    SBSE FLDINSLV ALTRD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    SBSE TDI PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    SBSE TEFRA PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    Note:

    SBSE employees will need to use either “WI ITVAA UNWORK” or “WI ITVAA IRSID” on any non-compliance related issue and use either “WI ITVAC UNWORK” or “WI ITVAC IRSID” on any compliance related issue when inputting UNWORK or IRSID Tax Source Administration Codes.

  13. Taxpayer Advocate Service (TAS) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    TAS CA PNDCLM, IRSID, and UNWORK
  14. Wage & Investment (WI) is profiled to use the following codes for TC 971 AC 522:

    BOD Name Program Name TC 971 AC 522
    Tax Administration Source Code
    WI ACS PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI AM PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI ASFR PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI AUR PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI CSCO PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI EXAM PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI FA ALTRD, INCMUL, IRSID, INCOME, ITIN, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    WI ITVAA INCMUL, IRSID, INCOME, ITIN, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    WI ITVAC INCMUL, IRSID, INCOME, ITIN, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    WI IVO DECD, INCMUL, INCOME, IRSID, MILTFL, NODCRQ, OTHER, PNDCLM, PRISNR AND UNWORK
    WI PREREF ALTRD, DECD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, PRISNR, UNWORK and OTHER
    WI RICS DECD, INCMUL, IRSID, INCOME, MULTFL, NODCRQ, NOFR, PNDCLM, UNWORK and OTHER
    WI SP INCMUL, IRSID, INCOME, MULTFL, NODCRQ, PNDCLM, PRISNR, UNWORK and OTHER
    WI TDI PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    WI WHC PNDCLM

    Note:

    for UNWORK and IRSID, see NOTE below

    Note:

    WI employees will need to use either “WI ITVAA UNWORK” for UNWORK or “WI ITVAA IRSID” on any non-compliance related issue and use either “WI ITVAC UNWORK” for UNWORK or “WI ITVAC IRSID” on any compliance related issue when inputting UNWORK or IRSID Tax Source Administration Codes.

IMF Only TC 972 AC 522 - Reversal of TC 971 AC 522

The exhibit demonstrates how AUR inputs a TC 971 AC 522 when no identity theft occurred.

This is an Image: 67662006.gif
 

Please click here for the text description of the image.

  1. Obtain the following information:

    • Entity - SSN;

    • BOD/Function (See Exhibit 25.23.2-1, Acronyms and Definitions );

    • Program Name (See Exhibit 25.23.2-1, Acronyms and Definitions);

    • Tax Year of the TC 971 AC 522 being reversed; and

      Note:

      The tax year must match the tax year of the TC 971 AC 522 that is being reversed.

    • Transaction date of the TC 971 AC 522 being reversed.

  2. Navigate to FRM77

    • Sign into IDRS;

    • Enter ENMOD SSN, then press ENTER;

    • Enter CC REQ77;

    • FRM77 is displayed for the selected SSN.

  3. Enter the TC 972 AC 522

    Caution:

    If the year in question being reversed is older than the current calendar year minus 7 years, CC REQ77 will not accept the year. Document AMS or your case history if you do not have AMS access to reflect identity theft did not actually occur in the year reflected on the taxpayer's entity.

    • Enter the TC with 972;

    • Enter TRANS-DT (enter the transaction date of the TC 971 AC 522 being reversed);

      Caution:

      In rare instances the Transaction Date will be a future date. If it is a future date, suspend the case until that date before attempting to input the TC 972 AC 522. If the TC 971 AC 522 is pending, post delay the TC 972 AC 522 one week.

    • Enter SECONDARY-DT (enter the tax year of the TC 971 AC 522 being reversed in the MMDDYYYY format);

    • Enter MISC (Modify the Reason Code field with the reason for the reversal). Select the Reason code that reflects the reason for the reversal from the options below; and

    • Enter REMARKS (enter your remarks).

  4. The following tables describe the TC 972 AC 522 Tax Administration Source Codes by BOD/Function and Program.

    Note:

    Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

TC 972 AC 522 Miscellaneous Field
Reason Description Tax Administration Source Code
Identity Theft has NOT occurred In the course of resolving an identity theft issue, the employee assigned determines no identity theft occurred. NOIDT
The taxpayer did not provide a valid claim or the requested additional information This code is used to close a suspended case when the taxpayer fails to provide a valid claim or the requested additional information within the time specified by the employee assigned. NORPLY
Taxpayer Request The taxpayer requests the 971 be reversed. TPRQ
Keying or Internal Error The 971 was due to a typographical mistake or another internal mistake. IRSERR
Internally Identified Negative Impact The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue. IRSADM
False Identity Theft Claim RESERVED FALSE
Other The reason for the 971 reversal does not meet any of the above reason descriptions. OTHER

The following tables describe the TC 972 AC 522 reason codes by BOD/Function and Program. Refer to Exhibit 25.23.2-1, Acronyms and Definitions, for definitions of the Program Name codes.

Note:

Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

Appeals is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
AP AP TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

CI is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
CI FO TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
CI RC TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

LB&I is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
LBI LBI TPRQ, IRSERR, IRSADM, FALSE, NOIDT, and OTHER

IT is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
MITS CSIRC TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

Operations Support is profiled to use the following codes to reverse a TC 971 AC 522

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
OS PHSH TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

IPSO is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
PPDS CONGINQ TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
PPDS OPIP TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

SBSE is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
SBSE ACS NORPLY
SBSE ASFR NORPLY
SBSE AUR NORPLY
SBSE CFBALDUE TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY and OTHER
SBSE CFDELRET TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY and OTHER
SBSE CORR NORPLY
SBSE CSCO NORPLY
SBSE FLDADV TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY and OTHER
SBSE FLDEXAM TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY RPM and OTHER
SBSE FLDINSLV TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY and OTHER
SBSE TDI NORPLY
SBSE TEFRA NORPLY

TAS is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
TAS TAS TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER

WI is profiled to use the following codes to reverse a TC 971 AC 522:

BOD Name Program Name TC 972 AC 522
Tax Administration Source Code
WI ACS NORPLY
WI AM TPRQ
WI ASFR NORPLY
WI AUR NORPLY
WI CSCO NORPLY
WI EXAM NORPLY
WI FA TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
WI ITVAA TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
WI ITVAC TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
WI PREREF TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
WI RICS TPRQ, IRSERR, IRSADM, FALSE, NOIDT, NORPLY, and OTHER
WI SP TPRQ, IRSERR, IRSADM, FALSE, OTHER, NOIDT and NORPLY
WI TDI NORPLY
WI WHC NORPLY

TC 971 AC 523 – Reserved

Important: Input of Action Code 523 is limited and reserved for use by PGLD.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The miscellaneous field for TC 972 AC 523 reflects the reason for the reversal of TC 971 AC 523.

TC 971 AC 524 – Locking SSNs - Applies to IMF Accounts Only

Important: Input of TC 971 AC 524 is limited and reserved for use by Identity Protection Strategy & Oversight (IPSO) and RICS.

The TC 971 AC 524 is displayed on IDRS command code ENMOD and consists of the following data elements:

TRANS-DT SECONDARY-DT MISC
Input date of TC 971 AC 524 Tax year of date of death BOD, Function, and Program that input the TC 971 AC 524. (See the Miscellaneous Field table below.)
TC 971 AC 524 Miscellaneous Field
Description BOD / Function Program Name Tax Administration Source
Deceased Taxpayer PPDS OPIP DECD
Deceased Taxpayer WI PREREF DECD

TC 972 AC 524 – Reversal of TC 971 AC 524

Important: Input of TC 972 AC 524 when there is a Date of Death is limited and reserved for use by the IPSO and Wage & Investment (RICS TPP & Submission Processing Entity).
When there is NO date of death present CSRs may, after completing the required taxpayer authentication, reverse TC 971 AC 524.

The miscellaneous field for TC 972 AC 524 reflects the reason for the reversal of TC 971 AC 524. The transaction date of the TC 972 must match the original TC 971. See the TC 972 AC 524 Miscellaneous Field chart below for the reasons and values for the MISC field.

This is an Image: 67662007.gif
 

Please click here for the text description of the image.

  1. Obtain the following information:

    • Entity - SSN;

    • BOD/Function;

    • Program Name;

    • Tax Year of the TC 971 AC 524 being reversed; and

      Note:

      The tax year must match the tax year of the TC 971 AC 524 that is being reversed.

    • Transaction date of the TC 971 AC 524 being reversed.

  2. Navigate to CC FRM77

    • Sign into IDRS;

    • Enter ENMOD SSN, then press ENTER;

    • Enter CC REQ77.

    • CC FRM77 is displayed for the selected SSN.

  3. Enter the TC 972 AC 524

    • Enter the TC with 972;

    • Enter TRANS-DT (enter the transaction date of the TC 971 AC 524 being reversed);

    • Enter SECONDARY-DT (enter the tax year of the TC 971 AC 524 being reversed in the MMDDYYYY format);

      Note:

      If no SECONDARY DT is present for the TC 971 AC 524 enter "12312014" for secondary date field. Many 524s were input systemically (system to system) and therefore no secondary dates are present.

    • Enter MISC (BOD, Program and the reason for the reversal). Select the Reason code that reflects the reason for the reversal from the options below;

      Note:

      When reversing the AC 524 because there is no date of death use "IRSERR" as the Tax Administration Source Code.

      and

    • Enter REMARKS (enter your remarks).

  4. The following tables describe the TC 972 AC 524 Tax Administration Source Codes by BOD/Function and Program.

    Note:

    Do not attempt to use Tax Administration Source Codes not listed for your BOD/Function.

    Note:

    Submission Processing: will use the following for reversals as no programming is available specific to submission:
    BOD: PPDS
    Program: OPIP
    Tax Administration Source Code: IRSERR

BOD Name Program Name TC 972 AC 524
Tax Administration Source Code
WI PREREF IRSERR
WI AMADJ IRSERR
TC 972 AC 524 Miscellaneous Field
Reason Description Tax Administration Source Code
Taxpayer Request The taxpayer requests the 971 be reversed. TPRQ
Keying or Internal Error The 971 was due to a typographical mistake or another internal mistake. IRSERR
Internally Identified Negative Impact The 971 is causing a negative impact on another internal process or system, and should be reversed to discontinue the negative impact. For example, a programming issue. IRSADM
False Identity Theft Claim RESERVED FALSE
Other The reason for the 971 reversal does not meet any of the above reason descriptions. OTHER

IDTVA IDRS Category Controls by Function

Employees in IDTVA-I/A will control Identity theft cases using the following category codes:

     
     
Category Code Description Used By
IDT1/IDS1 Taxpayer self-identified identity theft (English and Spanish). See IRM 25.23.4.4, Multiple Individuals Using the Same TIN - General Guidance for MXEN, and Identity Theft Cases. IDTVA-A employees working Identity Theft cases.
IDT3/IDS3 Involves IRS identified identity theft. See IRM 25.23.4.4, Multiple Individuals Using the Same TIN - General Guidance for MXEN, and Identity Theft Cases. IDTVA-A employees working Identity Theft cases.
IDT4 Taxpayer self-identified non-tax-related identity theft. See IRM 25.23.3.3.2, Self Identified - Non-Tax-Related Identity Theft – IDT4. Primarily IDTVA IPSU, but may be systemically associated with existing tax related IDTVA controls by CIS.
IDT5 Responses to CP 01 Notices and/or Letter 4445C, TC 971 AC 501 Acknowledgement Notification letters.

Note:

Effective July 1, 2009 a CP 01, Identity Theft Claim Acknowledgement, are acknowledgement notifications of ID theft will be systemically generated in 2 to 12 cycles after input of the Transaction Code (TC) 971 Action Code (AC) 501.

See IRM 25.23.3.3.3, Responses to Identity Theft and Data Loss Notification Letters/Notices - IDT5
IDTVA-I employees only.
IDT8/IDS8 CP 05A, (cases with prior Integrity & Verification Operation (IVO) (formerly known as AMTAP) involvement) and Deceased Taxpayer cases only. IMF AM CSRs working a tax-related issue involving identify theft. See IRM 25.23.4.11, Streamline IDT Case Type Identification.
IDT9/IDS9 Identity Theft cases that are linked to an ITAR (Identity Theft Assistance Request). These cases are equivalent to an Operations Assistance Request (OAR). CSRs will receive Form 14103 referral from Andover or Fresno ITAR. IMF AM CSRs working a tax-related issue involving identity theft AFTER receiving a Form 14103 referral..
GRVW Global Review. See IRM 25.23.3.3.4, Global Review - GRVW. IDTVA-I employees only.
     
ITAR Identity Theft Assistance Request (ITAR). See IRM 25.23.3.3.5, Identity Theft Assistance Request (ITAR) - General Information. IDTVA-I employees only.

IDTVA Compliance employees use the Category Codes listed below to track the case status:

Category Code Title Definition
IDI1 Exam IDTVA - Compliance - Examination cases.
IDI2 AUR IDTVA - Compliance - AUR cases.
IDI3 ACSS IDTVA - Compliance - ACS Support cases. (Both Domestic and International). This includes IDRS status 3.
IDI4 ASFR/CSCO IDTVA - Compliance - ASFR/ASFR Recon cases. CSCO/CSCO Recon refund hold cases.
IDI5 DITA referral-Campus Cases referred to DITA from an IDTVA - C team for resolution.
IDI6 DITA referral - Field Case referred to DITA from a Field operation.
IDI7 BMF IDTVA - Compliance - All BMF cases
IDI9 CSCO - TDI/TDA Programs IDTVA - Compliance - CSCO - TDI and TDA.
IDII RPM1, RPM2, RPM3 AND RPM4 Use for RPM cases