25.23.4 IDTVA Paper Process

Manual Transmittal

September 10, 2020

Purpose

(1) This manual transmits revised guidance for IRM 25.23.4, IDTVA Paper Process.

(2) This manual provides procedures for the treatment and resolution of Individual Master File (IMF) tax-related identity theft (IDT) cases.

Material Changes

(1) IRM 25.23.4.1 Corrected the primary stakeholders information. IPU 19U1133 issued 10-21-2019

(2) IRM 25.23.4.1.4 Clarified existing procedures. IPU 19U1295 issued 12-16-2019

(3) IRM 25.23.4.1.5(1) Removed IVO and added RIVO.

(4) IRM 25.23.4.1.5(1) Added "TCIS" to acronym list. Corrected various other acronyms. IPU 19U1133 issued 10-21-2019

(5) IRM 25.23.4.1.5(1) Added ASFR (Automated Substitute for Return) and IJE (Invalid Joint Election) to the table and removed OMM (Operation Mass Mailing) from the table. IPU 19U1295 issued 12-16-2019

(6) IRM 25.23.4.1.5(2) Moved guidance to IRM 25.23.4.6.1(1). IPU 19U1133 issued 10-21-2019

(7) IRM 25.23.4.1.6(1) Clarified information and removed reference to IRM 25.23.4. IPU 19U1133 issued 10-21-2019

(8) IRM 25.23.4.1.6(2) Deleted note that is no longer applicable. IPU 19U1133 issued 10-21-2019

(9) IRM 25.23.4.2(8) Added information about reports provided by ITVA headquarters for inventory management purposes. IPU 20U0206 issued 02-04-2020

(10) IRM 25.23.4.3(8) Clarified information in reminder to specify SC or MF in collection status.

(11) IRM 25.23.4.3.1(1) Removed all instructions related to IDRS control bases and clarified information in the Exception. Added a note allowing use of IAT xClaim to prevent new modules being created with CC MFREQ. Removed the reference to IRM 21.5.2.3 in the reminder. IPU 19U1133 issued 10-21-2019

(12) IRM 25.23.4.3.1(1) Expanded on existing information to clarify that additional impacted years must have a new CIS case created and that all related CIS cases must be linked. IPU 20U0394 issued 03-09-2020

(13) IRM 25.23.4.3.1(2) Expanded on existing information to specify the appropriate date for IDT3, IDS3, IDT6, and IDS6 cases. Added a caution to remind of the importance of conducting thorough research to determine the appropriate date to use for account actions, including adjustments and determinations of credit availability. IPU 20U0206 issued 02-04-2020

(14) IRM 25.23.4.3.1(2) Expanded on existing information to clarify the appropriate IRS received date to use when creating a CIS case and specify that cases should rarely be opened from archive. IPU 20U0394 issued 03-09-2020

(15) IRM 25.23.4.3.1(5) Clarified existing procedures and corrected the Activity requirement. IPU 19U1133 issued 10-21-2019

(16) IRM 25.23.4.3.1(7) Changed use of activity codes from mandatory to encouraged.

(17) IRM 25.23.4.3.2(1) Expanded on existing information to specify the purpose is to determine ownership of the case. IPU 20U0206 issued 02-04-2020

(18) IRM 25.23.4.3.2(4) Clarified existing procedures to specify Specialty Functions. IPU 19U1133 issued 10-21-2019

(19) IRM 25.23.4.3.2(5) Clarified existing information to specify requesting closure or reassignment of the case. IPU 20U0206 issued 02-04-2020

(20) IRM 25.23.4.3.4 Revised multiple paragraphs for clarity. IPU 19U1133 issued 10-21-2019

(21) IRM 25.23.4.3.4(1) Clarified list to include open controls currently assigned to an IDTVA employee.

(22) IRM 25.23.4.3.5(2) Added table for priority codes used by all of IDTVA.

(23) IRM 25.23.4.3.5(3) Added table for priority codes used by IDTVA-A.

(24) IRM 25.23.4.3.5(4) Previously paragraph (2). Added Refund Hold cases to the list of cases for PC 1. Added referrals from OIC (CSCO Specialty only) and Form 3870 Field referrals to the list of cases for PC 2.

(25) IRM 25.23.4.4(4) Clarified existing procedures. IPU 19U1133 issued 10-21-2019

(26) IRM 25.23.4.4(4) d) Revised existing information to clarify when income related IDT is tax related IDT.

(27) IRM 25.23.4.4(5) Corrected IRM title within the note. IPU 19U1133 issued 10-21-2019

(28) IRM 25.23.4.4(7) Revised exception for clarity. IPU 19U1133 issued 10-21-2019

(29) IRM 25.23.4.5(2) Clarified existing procedures. IPU 19U1133 issued 10-21-2019

(30) IRM 25.23.4.5(3) Added an exception stating, “Cases with RIVO involvement must be closed with the IDT8/IDS8 category code, unless the case meets criteria in IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO involvement, paragraph (5).

(31) IRM 25.23.4.6(2) Deleted note. Guidance no longer needed. IPU 19U1133 issued 10-21-2019

(32) IRM 25.23.4.6(2) Clarified existing information to specify SC or MF.

(33) IRM 25.23.4.6(2) Added the requirement to input TC 470 CC 90 for modules that reflect a balance due. IPU 20U0568 issued 04-30-2020

(34) IRM 25.23.4.6.1 Expanded on research required to locate a TIN when the CIS case has been assigned to all zeros. IPU 20U0206 issued 02-04-2020

(35) IRM 25.23.4.6.1(1) Clarified existing procedures and added the definitions from IRM 25.23.4.1.5. IPU 19U1133 issued 10-21-2019

(36) IRM 25.23.4.6.1(5) Removed the requirement to obtain the Form W-7 DLN to request the documents. IPU 20U0394 issued 03-09-2020

(37) IRM 25.23.4.6.1(5) Expanded on existing information for ITIN research, including the addition of a reminder regarding expiration of ITINs and the PATH Act.

(38) IRM 25.23.4.6.1(6) Clarified FTC in the last note. IPU 19U1133 issued 10-21-2019

(39) IRM 25.23.4.6.1(9) Added TC 971 AC 123 with MISC "PREPARER CONTACT" to the bullet list.

(40) IRM 25.23.4.6.1(10) Added a reference for instances where a TC 971 AC 123 with MISC "PREPARER CONTACT" is present or the taxpayer states they were informed they were potentially affected by a data breach.

(41) IRM 25.23.4.6.1(11) Added a reminder stating IDTVA Specialties employees reassign the case.

(42) IRM 25.23.4.6.1(12) Revised reminder to update procedures to have IDTVA Specialties employees reassign the case instead of returning it to the referring Compliance function.

(43) IRM 25.23.4.6.2 Revised multiple paragraphs throughout section for clarity. IPU 19U1133 issued 10-21-2019

(44) IRM 25.23.4.6.2(4) Added IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF), to the table of references. IPU 19U1295 issued 12-16-2019

(45) IRM 25.23.4.6.2(4) Added references for Letter Procedures Job Aids to the table. IPU 20U0206 issued 02-04-2020

(46) IRM 25.23.4.6.2(4) Added a reference for unfiled returns to the table. IPU 20U0394 issued 03-09-2020

(47) IRM 25.23.4.6.2(4) Added Economic Impact Payment to the table of topics with references. IPU 20U0568 issued 04-30-2020

(48) IRM 25.23.4.6.2(4) Added a reference to the IDTVA Restricted Interest Desk Guide.

(49) IRM 25.23.4.6.3(1) Clarified existing procedures. IPU 19U1133 issued 10-21-2019

(50) IRM 25.23.4.6.3(2) Separated the table into separate paragraphs for each section. IPU 19U1295 issued 12-16-2019

(51) IRM 25.23.4.6.3(2) Added a scenario to the table that covers instances where the valid taxpayer may have a fling requirement but has not yet filed a return. IPU 20U0394 issued 03-09-2020

(52) IRM 25.23.4.6.3(2) Added a scenario to the table for tax years 2018 and 2019 when the Economic Impact Payment was issued. IPU 20U0568 issued 04-30-2020

(53) IRM 25.23.4.6.3(3) Updated Form 8379 information in the table. IPU 19U1133 issued 10-21-2019

(54) IRM 25.23.4.6.3(3) Added instructions to input TC 592 to reverse TC 594 CC 084 cross referencing the unrelated secondary taxpayer. IPU 19U1295 issued 12-16-2019

(55) IRM 25.23.4.6.3(3) Added the requirement to input TC 972 AC 522 to reverse TC 971 AC 522 with MISC WI FA ALTRD after all corrective actions have been taken. IPU 20U0568 issued 04-30-2020

(56) IRM 25.23.4.6.3(4) Clarified procedures in the table. Combined IDT8 procedures with IDT1/3 procedures. IPU 19U1133 issued 10-21-2019

(57) IRM 25.23.4.6.3(5) Table scenario 1, removed the limitation of linking only related cases for the same tax period. IPU 20U0394 issued 03-09-2020

(58) IRM 25.23.4.6.3(5) Expanded on existing procedures to specify cases under a spouse’s TIN should be linked.

(59) IRM 25.23.4.6.3(7) Added scenarios for balance due accounts in notice status, TC 470 CC 90 input, and balance due accounts in collection status. IPU 20U0568 issued 04-30-2020

(60) IRM 25.23.4.6.3(8) Revised instructions in Scenario 2 to be consistent with the information in IRM 25.23.4.10.1(4), IDT Return/Good Return - No Lost Refund. IPU 19U1295 issued 12-16-2019

(61) IRM 25.23.4.6.3(9) Removed TC 971 AC 501 and added a reminder that states taxpayers who filed Form 14039 will be flagged with TC 971 AC 506 WI AM OTHER. IPU 20U0394 issued 03-09-2020

(62) IRM 25.23.4.6.3(9) Added a scenario to address unpostable invalid returns when Form 14039 is received. IPU 20U0607 issued 05-12-2020

(63) IRM 25.23.4.6.3(9) Added a note requiring the use of the CIS capture function when issuing a letter as part of an IDT case resolution. Added a new scenario (5) to the table for cases being closed as IDT4 when there is an IRS Data Breach indicator TC 971 AC 505 present. Revised scenario (6) existing information to specify rejected returns with no invalid returns accepted.

(64) IRM 25.23.4.6.4(1) Note was expanded to include more detail in the definition of active tax years. IPU 20U0394 issued 03-09-2020

(65) IRM 25.23.4.6.4(2) Added a CIS case note requirement. IPU 19U1295 issued 12-16-2019

(66) IRM 25.23.4.6.4(3) Expanded on existing information to specify the appropriate IRS received date to use for IDT impacted tax years identified through completion of CCA. Added an example to illustrate determining the correct IRS received date to use. IPU 20U0394 issued 03-09-2020

(67) IRM 25.23.4.6.4(3) Added instruction to close additional impacted years discovered through CCA with TC 971 AC 504 when the identity theft is not affecting tax administration. Added an example to demonstrate the appropriate use of closing indicators.

(68) IRM 25.23.4.6.5(1) Clarified ordering returns may be done when it is needed for the resolution of the case. IPU 20U0568 issued 04-30-2020

(69) IRM 25.23.4.6.5.1 Clarified existing information throughout. IPU 19U1295 issued 12-16-2019

(70) IRM 25.23.4.6.5.1(1) Added information regarding potential delays caused by ordering documents, described alternative research paths that must be completed prior to ordering a document, and emphasized the importance of only ordering documents that are necessary. IPU 20U0568 issued 04-30-2020

(71) IRM 25.23.4.6.5.1(2) Added exceptions to MXEN and Non-streamline that indicate cases meeting No Move criteria or require use of Form 12810 to move the return do not require ordering the document to correct the account. IPU 20U0568 issued 04-30-2020

(72) IRM 25.23.4.6.5.2(4) Removed information duplicated in the Reminder. IPU 19U1133 issued 10-21-2019

(73) IRM 25.23.4.6.5.2(5) Removed scenarios 2 and 4 due to contradictions with information in (5) resulting in scenario numbers being updated. IPU 19U1133 issued 10-21-2019

(74) IRM 25.23.4.6.5.2(5) Clarified existing procedures and updated reference to IRM 25.23.4.8, Streamline Identity Theft (IDT) Case Identification and Processing. IPU 19U1295 issued 12-16-2019

(75) IRM 25.23.4.6.5.2(9) Clarified existing procedures for editing returns to be reprocessed. IPU 19U1295 issued 12-16-2019

(76) IRM 25.23.4.6.5.2(10) Added instructions for where to send returns that are to be reprocessed. IPU 19U1295 issued 12-16-2019

(77) IRM 25.23.4.6.5.2(12) Corrected to Form 13503. IPU 19U1295 issued 12-16-2019

(78) IRM 25.23.4.6.5.2(13) Deleted guidance no longer needed. IPU 19U1133 issued 10-21-2019

(79) IRM 25.23.4.6.5.2(14) Moved to create a new subsection - IRM 25.23.4.6.5.2.2 Unprocessed Returns - 40 Day Suspense Time Frame Expired. IPU 19U1133 issued 10-21-2019

(80) IRM 25.23.4.6.5.2.1 Removed "Paper Inventory -" from the title. IPU 19U1133 issued 10-21-2019

(81) IRM 25.23.4.6.5.2.1(1) Note moved to create a new (2). Moved the returns with a stamped DLN procedures to (4). Rearranged table information to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(82) IRM 25.23.4.6.5.2.2 IRM created from information previously in IRM 25.23.4.6.5.2(14). IPU 19U1133 issued 10-21-2019

(83) IRM 25.23.4.6.6 New section created to provide general information for Credit Transcripts that will be received in IDTVA. IPU 20U0206 issued 02-04-2020

(84) IRM 25.23.4.6.6.1 New section created to provide IDTVA screeners with procedures for identifying and assigning appropriate Credit Transcript referrals received. IPU 20U0206 issued 02-04-2020

(85) IRM 25.23.4.6.6.2 New section created to provide technical guidance for resolving Credit Transcripts received. IPU 20U0206 issued 02-04-2020

(86) IRM 25.23.4.6.6.2(1) Revised to specify the category codes will not be updated from IDT6/IDS6. IPU 20U0568 issued 04-30-2020

(87) IRM 25.23.4.6.6.2(2) Added instruction to ensure the case meets IDTVA criteria and to return those that don’t to the originating employee/function.

(88) IRM 25.23.4.7(1) Added a reminder to nullify returns when the only income reported was earned by the valid taxpayer. IPU 20U0607 issued 05-12-2020

(89) IRM 25.23.4.7(4) Removed reference to Form W-7 and replaced with EUP/ITIN RTS. The original Form W-7 is not required to make a determination. IPU 20U0394 issued 03-09-2020

(90) IRM 25.23.4.8 Clarified existing procedures. Added reference to IRM 25.23.4.8.5.2, Streamline Identity Theft (IDT) - One Return Present, to replace previous link to IRM 25.25.4.5, Identity Theft (IDT) Category 7 - Single Return/Deceased/X-REF - No Lost Refund Process, and IRM 25.25.4.6, Identity Theft (IDT) Category 7 - Single Return/Deceased/X-REF - Lost Refund Process. IPU 19U1295 issued 12-16-2019

(91) IRM 25.23.4.8 Previous information has been moved to IRM 25.23.4.8.1. Revised this IRM to include general information for making identity theft CN ownership determinations. The following subsections have been renumbered as a result: IRM 25.23.4.8.1, IRM 25.23.4.8.2, IRM 25.23.4.8.3, IRM 25.23.4.8.4, IRM 25.23.4.8.5.

(92) IRM 25.23.4.8.1(1) Expanded on existing information to list the methods used to make a nullity determination. IPU 20U0394 issued 03-09-2020

(93) IRM 25.23.4.8.1(1) Added instructions to nullify returns when the only income reported was earned by the valid taxpayer. IPU 20U0607 issued 05-12-2020

(94) IRM 25.23.4.8.1 Previous information has been moved to IRM 25.23.4.8.1.1.

(95) IRM 25.23.4.8.1.1(4) Expanded on existing information to clarify all cases with RIVO involvement will be worked with the IDT8/IDS8 category code, unless the case meets criteria in (5). Removed the note and individual references to IDT8/IDS8 for clarity. IPU 20U0394 issued 03-09-2020

(96) IRM 25.23.4.8.1.1 Rearranged table information to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(97) IRM 25.23.4.8.1.1 Previous information has been moved to IRM 25.23.4.10.8.

(98) IRM 25.23.4.8.1.2 Information was previously found in IRM 25.23.4.8.2.

(99) IRM 25.23.4.8.1.3 Information was previously found in IRM 25.23.4.8.3.

(100) IRM 25.23.4.8.1.3(5) Clarified existing procedures for Schedule C Nullity criteria to specify additional actions must be taken to make a determination when the CN owner has a history of filing returns reporting Schedule C income. IPU 19U1295 issued 12-16-2019

(101) IRM 25.23.4.8.1.3(10) Added requirements for documentation of research and attachment of Form 4442 to the CIS case. IPU 19U1295 issued 12-16-2019

(102) IRM 25.23.4.8.1.4 Information was previously found in IRM 25.23.4.8.4.

(103) IRM 25.23.4.8.1.4(3) Clarified existing procedures for addressing IDT for TINs included on a return meeting Married Filing Joint Scheme criteria. Added a reminder to input TC 592 to reverse TC 594 CC 084. IPU 19U1295 issued 12-16-2019

(104) IRM 25.23.4.8.1.4(3) Revised reminder to include additional information about TC 592 and input of TC 594 CC 084 to reference the correct spouse.

(105) IRM 25.23.4.8.1.4.1 Expanded on Invalid Joint Election (IJE) procedures, including the addition of definitions of IJE situations, characteristics of returns that may meet IJE criteria, tacit consent, common law marriage, acceptable documentation and procedures to resolve IJE claims. IPU 19U1295 issued 12-16-2019

(106) IRM 25.23.4.8.1.4.1(12) Added instructions to input TC 472 if TC 470 CC 90 was input and the taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(107) IRM 25.23.4.8.1.5 Information was previously found in IRM 25.23.4.8.5. Revised existing procedures to provide additional information on external business and preparer data breach cases, including use of TC 971 AC 123 MISC "PREPARER CONTACT" .

(108) IRM 25.23.4.8.1.5.1 Information was previously found in IRM 25.23.4.8.5.1.

(109) IRM 25.23.4.8.1.5.2 Information was previously found in IRM 25.23.4.8.5.2, Updated title to specify external business and preparer data breach streamline procedures. Expanded on existing information to correct accounts with one return identity theft related to an external business or preparer data breach.

(110) IRM 25.23.4.8.1.5.2 Streamline Identity Theft (IDT) - One Return Present, created to provide the applicable procedures previously found in IRM 25.25.4.5, Identity Theft (IDT) Category 7 - Single Return/Deceased/X-REF - No Lost Refund Process, and IRM 25.25.4.6, Identity Theft (IDT) Category 7 - Single Return/Deceased/X-REF - Lost Refund Process. IPU 19U1295 issued 12-16-2019

(111) IRM 25.23.4.8.1.5.2(1) Expanded on existing procedures for Table Scenario 1 to include a requirement to determine if the taxpayer has a filing requirement and address unfiled returns, as needed. IPU 20U0394 issued 03-09-2020

(112) IRM 25.23.4.8.1.5.2(1) Added a reminder to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(113) IRM 25.23.4.8.1.5.3 Created a new subsection for procedures on correcting accounts with identity theft related to an external business or preparer data breach when there are multiple returns present.

(114) IRM 25.23.4.8.2 Previous information has been moved to IRM 25.23.4.8.1.2. New section created for Non-Streamline IDT Determinations.

(115) IRM 25.23.4.8.2.1 Created a new subsection for TP identified IDT non-streamline determinations.

(116) IRM 25.23.4.8.2.2 Created a new subsection for IRS identified IDT non-streamline determinations.

(117) IRM 25.23.4.8.3 Previous information has been moved to IRM 25.23.4.8.1.3. New section created: Income Related IDT - General.

(118) IRM 25.23.4.8.3.1 Created a new subsection for Income Related IDT Determinations.

(119) IRM 25.23.4.8.4 Previous information has been moved to IRM 25.23.4.8.1.4.

(120) IRM 25.23.4.8.4.1 Previous information has been moved to IRM 25.23.4.8.1.4.1.

(121) IRM 25.23.4.8.5 Previous information has been moved to IRM 25.23.4.8.1.5.

(122) IRM 25.23.4.8.5.1 Previous information has been moved to IRM 25.23.4.8.1.5.1.

(123) IRM 25.23.4.8.5.2 Previous information has been moved to IRM 25.23.4.8.1.5.2.

(124) IRM 25.23.4.8.6 Previous information has been moved to IRM 25.23.4.10.11.2.

(125) IRM 25.23.4.8.7 Previous information has been moved to IRM 25.23.4.10.12.

(126) IRM 25.23.4.9.1.1.1 Updated procedures to reflect TY 2009 and earlier. Added a reference to IRM 25.23.4.10.11.1, Identity Theft with Tax Offsets, to address tax offsets into the module. IPU 19U1295 issued 12-16-2019

(127) IRM 25.23.4.9.1.4(3) Expanded on existing information in the reminder to clarify the need to resolve credit balances that will result from the account transfer prior to forwarding Form 12810 to accounting. IPU 20U0394 issued 03-09-2020

(128) IRM 25.23.4.9.2(5) Rearranged table information to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(129) IRM 25.23.4.9.2.2(4) Rearranged table information to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(130) IRM 25.23.4.10(1) Added new titles to the bullet list due to movement of procedures.

(131) IRM 25.23.4.10(3) Added instruction to close the case with a TC 971 AC 504 when all invalid returns on a module are unpostable and a Form 14039 was received. Included an exception for taxpayers who are also victims of income related IDT. IPU 20U0607 issued 05-12-2020

(132) IRM 25.23.4.10(3) Revised existing information to specify rejected returns with no invalid returns accepted.

(133) IRM 25.23.4.10(4) Added instructions to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(134) IRM 25.23.4.10.1(1) Added the requirement to input TC 971 AC 850 when resolving a current year case and the invalid return requested a direct deposit that had not been issued.

(135) IRM 25.23.4.10.1(4) Added instructions to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(136) IRM 25.23.4.10.3 Updated Title to remove No Lost Refund

(137) IRM 25.23.4.10.3(1) Revised procedures to specify use of BS 05 and state no source doc is needed. IPU 19U1295 issued 12-16-2019

(138) IRM 25.23.4.10.3(1) Added instructions to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(139) IRM 25.23.4.10.3(2) Added instructions to refer to amended returns procedures when the account has been adjusted to the invalid return.

(140) IRM 25.23.4.10.4(2) Added instructions to include the requirement to determine if the taxpayer has a filing requirement and address unfiled returns, as needed. IPU 20U0394 issued 03-09-2020

(141) IRM 25.23.4.10.5(1) Clarified existing information to include addressing unfiled returns. IPU 20U0394 issued 03-09-2020

(142) IRM 25.23.4.10.6(4) b) Revised existing information to clarify use of hold codes.

(143) IRM 25.23.4.10.6(5) Added instructions to include the requirement to determine if the taxpayer has a filing requirement and address unfiled returns, as needed. IPU 20U0394 issued 03-09-2020

(144) IRM 25.23.4.10.7(1) Clarified existing information to include addressing unfiled returns. IPU 20U0394 issued 03-09-2020

(145) IRM 25.23.4.10.8 Updated to reflect information previously found in IRM 25.23.4.8.1.1. Previous information has been moved to IRM 25.23.4.10.9.

(146) IRM 25.23.4.10.8(2) Clarified the reminder to include IDT6/IDS6 categories as cases that will not be updated to IDT8/IDS8. Added a reminder to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(147) IRM 25.23.4.10.8(3) Added a reference to IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF), for instructions on moving a credit to or from XSF. IPU 19U1295 issued 12-16-2019

(148) IRM 25.23.4.10.8(3) Added a reminder to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. Added Scenario 6 to the table for returns moved to MFT 32 in error. IPU 20U0568 issued 04-30-2020

(149) IRM 25.23.4.10.9 Previous information has been moved to IRM 25.23.4.10.11.1. Added information previously found in IRM 25.23.4.10.8.

(150) IRM 25.23.4.10.10 Previous information has been moved to IRM 25.23.4.10.13. All subsections were renumbered. Added procedures for Income Related IDT.

(151) IRM 25.23.4.10.11 New section created to provide technical guidance for resolving Identity Theft cases with offsets.

(152) IRM 25.23.4.10.11.1 Added information previously found in IRM 25.23.4.10.9.

(153) IRM 25.23.4.10.11.1(4) Clarified existing information and added an example for CSED consideration. IPU 20U0568 issued 04-30-2020

(154) IRM 25.23.4.10.11.1(5) Rearranged table information to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(155) IRM 25.23.4.10.11.1(6) Added instructions for tax offset reversals allowable due to taxpayer hardship and clerical errors resulting in a refund being applied to a balance owed. IPU 19U1295 issued 12-16-2019

(156) IRM 25.23.4.10.11.2 Added information previously found in IRM 25.23.4.8.6.

(157) IRM 25.23.4.10.11.2(10) Added instructions to input TC 470, as needed, to prevent balance due notices and to input TC 472 when TC 470 was input and the valid taxpayer will have a balance owed after the identity theft issue is resolved. IPU 20U0568 issued 04-30-2020

(158) IRM 25.23.4.10.11.2(10), Added instruction to include a post delay code when the TC 472 is input at the same time as the TC 470.

(159) IRM 25.23.4.10.12 Added information previously found in IRM 25.23.4.8.7. Revised HQ contact email to be OUO.

(160) IRM 25.23.4.10.13 Added information previously found in IRM 25.23.4.10.10.

(161) IRM 25.23.4.10.13 New section created to provide general information about amended returns with Identity Theft. IPU 20U0206 issued 02-04-2020

(162) IRM 25.23.4.10.13.1 New section created to provide technical guidance for resolving amended returns with Identity Theft - valid/invalid scenarios. IPU 20U0206 issued 02-04-2020

(163) IRM 25.23.4.10.13.1(1) Added a reminder about use of an Amended Claims Date (ACD).

(164) IRM 25.23.4.10.13.1(4) Expanded on procedures for each of the scenarios instructing to input TC 472 if TC 470 CC 90 was input and the valid taxpayer will have a balance owed. IPU 20U0568 issued 04-30-2020

(165) IRM 25.23.4.10.13.1(4) Added Return Processable Date (RPD) information to table scenarios 1 and 2.

(166) IRM 25.23.4.10.13.2 New section created to provide technical guidance for resolving amended returns with Identity Theft - invalid/valid scenarios. IPU 20U0206 issued 02-04-2020

(167) IRM 25.23.4.10.13.3 Subsection created to address amended return scenarios with no valid return filed. Remaining subsection was renumbered. IPU 20U0394 issued 03-09-2020

(168) IRM 25.23.4.10.13.4 New section created to provide technical guidance for resolving amended returns with Identity Theft - NOIDT determinations. IPU 20U0206 issued 02-04-2020

(169) IRM 25.23.4.10.14 Added new procedures for IDT previous action cases.

(170) IRM 25.23.4.11 Added detailed information on the types of OARs IDTVA will receive, including criteria and clarification of procedures to follow upon receipt. IPU 20U0206 issued 02-04-2020

(171) IRM 25.23.4.11.1 Clarified existing procedures for rejecting/returning OARS received in error throughout this subsection.

(172) IRM 25.23.4.11.2 Expanded on existing procedures, including clarification of acceptance of OARs, communication with TAS, and addressing languages other than English. IPU 20U0206 issued 02-04-2020

(173) IRM 25.23.4.11.3(8) Removed the note, guidance no longer needed. IPU 20U0206 issued 02-04-2020

(174) IRM 25.23.4.12(3) Added instructions to attach Form 14394 or Form 13794 to the CIS case when completed. Included a requirement to document the actions taken to address collection activity in a CIS case note.

(175) IRM 25.23.4.12.1(1) Updated Collection status codes and TC 971 AC 600. IPU 19U1133 issued 10-21-2019

(176) IRM 25.23.4.12.1(1) (b) Updated the levy programs listed to be consistent with the information in IRM 5.19.9. IPU 20U0568 issued 04-30-2020

(177) IRM 25.23.4.12.1(2) Added an exception to specify Form 14394 does not need to be completed for cases currently being worked by IDTVA-ACSS. IPU 20U0568 issued 04-30-2020

(178) IRM 25.23.4.12.2(3) Removed caution.

(179) IRM 25.23.4.12.3(1) Updated Collection status codes and clarified when to resume collection activity. IPU 19U1133 issued 10-21-2019

(180) IRM 25.23.4.13 Requests for an Appeal - New section adds procedures previously found in IRM 25.23.10.7.1. IPU 19U1295 issued 12-16-2019

(181) IRM 25.23.4.13(1) Added information to specify determinations of No IDT do not have appeal rights. Any additional information provided by the taxpayer after a No IDT determination must be considered and may result in an IDT determination.

(182) IRM 25.23.4.13.1 Cases with -L or -W Freeze Codes - New section adds procedures previously found in IRM 25.23.10.7.1. IPU 19U1295 issued 12-16-2019

(183) IRM 25.23.4.13.2 Taxpayer Requests a Reconsideration Appeal of an Invalid Identity Theft Determination - New section adds procedures previously found in IRM 25.23.10.7.2.

(184) IRM 25.23.4.13.3 Cases Returned from Appeals - New section adds procedures previously found in IRM 25.23.10.7.3. IPU 19U1295 issued 12-16-2019

(185) IRM 25.23.4.13.3.1 Non-Docketed Cases Returned from Appeals - New section adds procedures previously found in IRM 25.23.10.7.3.1. IPU 19U1295 issued 12-16-2019

(186) IRM 25.23.4.13.3.2 Docketed Cases Received from Appeals - New section adds procedures previously found in IRM 25.23.10.7.3.2. IPU 19U1295 issued 12-16-2019

(187) IRM 25.23.4.13.3.3 Collection Due Process Cases Returned from Appeals - New section adds procedures previously found in IRM 25.23.10.7.3.3. IPU 19U1295 issued 12-16-2019

(188) IRM 25.23.4.14 Removed the If/Then chart due to revisions made to IRM 25.23.4.14.1. IPU 20U0206 issued 02-04-2020

(189) IRM 25.23.4.14(2) Updated to specify wage income and clarify existing procedures. IPU 19U1133 issued 10-21-2019

(190) IRM 25.23.4.14.1(3) Added a table that provides instructions on resolving returns posted to MFT 32 in error. The table also addresses the need to update the ASED under certain circumstances. IPU 20U0206 issued 02-04-2020

(191) IRM 25.23.4.14.1(3) Revised the caution to include a reference to IRM 25.23.4.10.8, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement Resolution Tables.

(192) IRM 25.23.4.15(3) Added the requirement to use whole dollar amounts when completing Form 9409 to the Caution. IPU 20U0568 issued 04-30-2020

(193) IRM 25.23.4.15(4) Added instructions for correcting wage amounts earned by a taxpayer as a result of recent updates to Form 9409. IPU 20U0206 issued 02-04-2020

(194) IRM 25.23.4.15(6) Revised note to clarify Form 9409 case history requirements. IPU 20U0206 issued 02-04-2020

(195) IRM 25.23.4.15(6) Added the requirement to retain the Form 3210 for one year to the third note. IPU 20U0568 issued 04-30-2020

(196) IRM 25.23.4.15(8) Added instructions to address Forms 9409 sent to SSA in error. IPU 20U0206 issued 02-04-2020

(197) IRM 25.23.4.15.1 New section contains guidance previously found in IRM 25.23.4.16. IPU 19U1133 issued 10-21-2019

(198) IRM 25.23.4.16 Preparing a Duplicate Form 3245 and Form 3899 moved to become new subsection 25.23.4.15.1 All subsequent sections were renumbered. IPU 19U1133 issued 10-21-2019

(199) IRM 25.23.4.17(1) Added a note stating it is not necessary to determine a taxpayer’s filing requirement for the current tax year if the return due date (RDD) has not passed. IPU 20U0745 issued 06-29-2020

(200) IRM 25.23.4.17(2) Added a caution to clarify only income earned by the valid taxpayer will be used to determine gross income. Added a reminder to state Form 9409 must be completed for any wages determined to be filed by someone other than the valid taxpayer. Added an example to demonstrate the new information. IPU 20U0568 issued 04-30-2020

(201) IRM 25.23.4.18.1(1) Added a note requiring the use of the CIS capture function when issuing a letter as part of an IDT case resolution.

(202) IRM 25.23.4.18.1(4) Expanded on existing information to clarify use of the International phone number. IPU 20U0394 issued 03-09-2020

(203) IRM 25.23.4.18.1(4) Bullet 3 - added Letter 5316C as an exception for acknowledgement letters. Bullet 4 - added Letter 2645C as an exception for acknowledgement letters when the case originated as an RPM claim.

(204) IRM 25.23.4.18.1(8) Added an example to illustrate the potential impact of issuing an interim letter prior to a case being age 175 days or more. IPU 20U0206 issued 02-04-2020

(205) IRM 25.23.4.18.1(9) Added an exception allowing employees that do not have a six-digit extension to use the extension of their work leader when issuing the letter. IPU 19U1295 issued 12-16-2019

(206) IRM 25.23.4.18.1(9) Added an exception to the inclusion of a six-digit extension when issuing a letter for IDTVA International cases. IPU 20U0394 issued 03-09-2020

(207) IRM 25.23.4.18.1(12) Added a requirement to issue Letter 4674C when the inquiry is received from an unauthorized third party.

(208) 18.1(13) Provided special paragraphs to use when issuing a closing letter to the reporting person when they are not an authorized third party.

(209) IRM 25.23.4.18.1(15) Expanded on existing information in the note to clarify use of the International phone number. IPU 20U0394 issued 03-09-2020

(210) IRM 25.23.4.18.1(16) Added an example to illustrate additional compliance issues that must be addressed. IPU 20U0206 issued 02-04-2020

(211) IRM 25.23.4.18.1(18) Added a caution regarding letters sent to taxpayers when TC 971 AC 506 is input after cycle 47.

(212) IRM 25.23.4.18.2(2) Revised existing information to include a requirement to document each attempt to call a taxpayer, including the phone number called, who you spoke with, and/or if a message was left for a taxpayer.

(213) IRM 25.23.4.18.2(9) Moved existing information to paragraph (8) and added instructions to follow when the suspense period has passed and the taxpayer has not provided the requested information. IPU 20U0568 issued 04-30-2020

(214) IRM 25.23.4.18.2(2) Clarified outgoing call requirements.

(215) IRM 25.23.4.18.2.2(6) Revised to state, "Their answer must include a statement regarding the application, testing process, and oath of allegiance."

(216) IRM 25.23.4.18.2.3(c#3) Reorganized and clarified instructions.

(217) IRM 25.23.4.18.5(2) Revised to remove the word "All" and add exceptions for employees who have not been assigned a six-digit extension or work IDTVA International cases. IPU 20U0394 issued 03-09-2020

(218) IRM 25.23.4.18.5(8) Added graphic of the IUP Call Display. IPU 20U0394 issued 03-09-2020

(219) IRM 25.23.4.19 Updated the title to Requesting Translations of Certain Languages. IPU 20U0568 issued 04-30-2020

(220) IRM 25.23.4.19(5) Added a paragraph to recommend bilingual employees document information received from the taxpayer and information sent to the taxpayer in a non-English language as a CIS case note. IPU 20U0568 issued 04-30-2020

(221) IRM 25.23.4.20 New section created: Coronavirus Aid, Relief, and Economic Security Act (CARES Act) - General. IPU 20U0568 issued 04-30-2020

(222) IRM 25.23.4.20(3) Added information regarding issuance of EIPs via paper check and pre-paid debit cards.

(223) IRM 25.23.4.20(4) Added information for taxpayers using the non-filer tool that have been issued an IP PIN.

(224) IRM 25.23.4.20(5), Revised the eligible individual information to remove the date for deceased taxpayers. IPU 20U0745 issued 06-29-2020

(225) IRM 25.23.4.20(6) Clarified existing information to specify taxpayers with an extension to file request on file must have a valid SSN prior to October 15, 2020 to qualify for the EIP. IPU 20U0745 issued 06-29-2020

(226) IRM 25.23.4.20(10) Removed the exception regarding erroneous refunds.

(227) IRM 25.23.4.20.1 New section created: Economic Impact Payment (EIP) Account Research. IPU 20U0568 issued 04-30-2020

(228) IRM 25.23.4.20.1(6) Clarified descriptions of reason codes. IPU 20U0950 issued 08-27-2020

(229) IRM 25.23.4.20.1(7) Added information regarding TC 971 AC 199 indicators input for taxpayers who update their direct deposit information with the Get My Payment tool and a reference to the TC 971 AC 199 MISC field descriptions.

(230) IRM 25.23.4.20.1(9) Removed the OUO restriction on some criteria listed.

(231) IRM 25.23.4.20.1(10) Removed the OUO restriction on some criteria listed.

(232) IRM 25.23.4.20.2 New section created: Economic Impact Payment (EIP) - Additional Research for Identity Theft (IDT) Cases. IPU 20U0568 issued 04-30-2020

(233) IRM 25.23.4.20.2(8) - (11) Added information for identifying accounts that have had an adjustment to EIP while conducting research. IPU 20U0950 issued 08-27-2020

(234) IRM 25.23.4.20.2.1 Created a new section to provide coordinator procedures for EIP referrals received. IPU 20U0950 issued 08-27-2020

(235) IRM 25.23.4.20.3 New section created: Economic Impact Payment (EIP) - Screening and Priority Case Procedures for Identity Theft (IDT) Cases. IPU 20U0568 issued 04-30-2020

(236) IRM 25.23.4.20.3 Revised entire section to remove all references to the inability to adjust EIP. Added references to the new section for EIP adjustments. IPU 20U0950 issued 08-27-2020

(237) IRM 25.23.4.20.3(2) Revised priority codes to remove PC 7. Updated the definition of PC 6, and added PC 8. IPU 20U0745 issued 06-29-2020

(238) IRM 25.23.4.20.3(3) Revised scenarios (1), (2), (6), and (7) to allow for accounts with a TC 976 to be corrected when a TC 971 AC 501/506 posted after cycle 201801 is not present. IPU 20U0745 issued 06-29-2020

(239) IRM 25.23.4.20.3(4) Added instruction to see paragraph (5) when the taxpayer is a victim of income related IDT. Added instruction to create a dummy module for tax year 2020 and input TC 971 AC 850 when the posted TY 2018 or 2019 return is invalid. IPU 20U0607 issued 05-12-2020

(240) IRM 25.23.4.20.3(4) Revised to allow for accounts with a TC 976 to be corrected when a TC 971 AC 501/506 posted after the cycle 201801 is not present. IPU 20U0745 issued 06-29-2020

(241) IRM 25.23.4.20.3(5) Added procedures to allow for the EIP to be issued systemically when the taxpayer is a victim of income related IDT and the employee must correspond to request additional information from the taxpayer to determine what income does not belong to the taxpayer. IPU 20U0607 issued 05-12-2020

(242) IRM 25.23.4.20.3(6) Revised scenarios (4) and (5) to allow for accounts with a TC 976 to be corrected when a TC 971 AC 501/506 posted after cycle 201801 is not present. Included a requirement to suspend the case for 40 days (70 days for international taxpayers) for each scenario. IPU 20U0745 issued 06-29-2020

(243) IRM 25.23.4.20.4 Created a new section to provide EIP adjustment procedures. IPU 20U0950 issued 08-27-2020

(244) Exhibit 25.23.4-4 Rearranged table information to ensure 508 compliance is met. Updated IDT4/X information to reference IRM 25.23.4.4 to resolve the account. IPU 19U1295 issued 12-16-2019

(245) Exhibit 25.23.4-4(3) Added a new scenario to the table to address refund inquiries with RIVO involvement. IPU 20U0394 issued 03-09-2020

(246) Exhibit 25.23.4-5 Moved general table instructions out of the table to ensure 508 compliance is met. Updated (15) ASFR information to reflect the correct transaction codes based on the updated systemic ASFR process. IPU 19U1295 issued 12-16-2019

(247) Exhibit 25.23.4-5 Added a case note requirement. IPU 20U0206 issued 02-04-2020

(248) Exhibit 25.23.4-5 Updated program OFPs due to consolidation of OFPs being used in IDTVA Specialty Functions. IPU 20U0394 issued 03-09-2020

(249) Exhibit 25.23.4-5(6) Clarified existing FRP referral procedures in scenario (9). IPU 20U0607 issued 05-12-2020

(250) Exhibit 25.23.4-5(6) Updated category code from TPPI to FRPI.

(251) Exhibit 25.23.4-5(11) Table scenarios (1) and (7) were updated to include a new IDRS referral number.

(252) Exhibit 25.23.4-6 Moved the title rows out of the tables to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(253) Exhibit 25.23.4-8 Moved the title row out of the table to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(254) Exhibit 25.23.4-8 Updated the priority listing for IDTVA-A to include IDT6/IDS6 cases as the 4th priority. IDT1/IDS1 aged cases are now the 5th priority, and IDT3/IDS3 aged cases are now the 6th priority. IPU 20U0206 issued 02-04-2020

(255) Exhibit 25.23.4-9 Updated to include information for IDT6/IDS6 cases.

(256) Exhibit 25.23.4-10 Moved the title row out of the table to ensure 508 compliance is met. IPU 19U1295 issued 12-16-2019

(257) Exhibit 25.23.4-10(1) Updated paragraph selections and fill-in field for the example to be consistent with the current Letter 4674C revised on 1/6/2020. IPU 20U0394 issued 03-09-2020

(258) Exhibit 25.23.4-11 Updated Scenario (8) to include open or closed cases to be consistent with procedures in IRM 25.23.4.8.6, Identity Theft with TOP Offset. IPU 19U1295 issued 12-16-2019

(259) Exhibit 25.23.4-12 Updated to include information for IDT6/IDS6 cases.

(260) Exhibit 25.23.4-13 New Exhibit provides an email format for referrals to SB/SE Examination Technical Services. IPU 19U1295 issued 12-16-2019

(261) Exhibit 25.23.4-14 Format for Emails to Appeals - New Exhibit adds information previously found in Exhibit 25.23.10-1. IPU 19U1295 issued 12-16-2019

(262) Exhibit 25.23.4-15 Created an exhibit that outlines the intended use of the AUR ADR report for IDTVA P&A. IPU 20U0206 issued 02-04-2020

(263) Exhibit 25.23.4-16 Created an exhibit that outlines the intended use of the Balance Due Receipts Listing for IDTVA P&A. IPU 20U0206 issued 02-04-2020

(264) Exhibit 25.23.4-17 Created an exhibit that outlines the intended use of the Disaster -O Listing for IDTVA P&A. IPU 20U0206 issued 02-04-2020

(265) Exhibit 25.23.4-18 Created an exhibit that outlines the intended use of the Freeze Code -L Listing for IDTVA P&A. IPU 20U0206 issued 02-04-2020

(266) Exhibit 25.23.4-19 Created an exhibit that outlines the intended use of the Freeze Code Z Listing for IDTVA P&A. IPU 20U0206 issued 02-04-2020

(267) Exhibit 25.23.4-20 Created an exhibit detailing TC 971 AC 199 MISC Field Descriptions for Economic Impact Payments (EIPs)

(268) IRM 25.23.4 Various editorial changes, IRM cross references, and instances of IVO updated throughout entire IRM.

Effect on Other Documents

This IRM supersedes IRM 25.23.4 dated 10-01-2019 and incorporates Identity Theft Case Processing IRM procedural updates:
IPU 19U1133 (issued 10-21-2019)
IPU 19U1295 (issued 12-16-2019)
IPU 20U0206 (issued 02-04-2020)
IPU 20U0394 (issued 03-09-2020)
IPU 20U0568 (issued 04-30-2020)
IPU 20U0607 (issued 05-12-2020)
IPU 20U0745 (issued 06-29-2020)
IPU 20U0950 (issued 08-27-2020)

Audience

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

Effective Date

(10-01-2020)

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

Program Scope and Objectives

  1. Purpose - This IRM section provides guidance for resolving identity theft (IDT) casework.

  2. Audience - The provisions in this section apply primarily to employees assigned to the Identity Theft Victim Assistance (IDTVA) directorate, but may be used by all divisions, functional units, employees and contractors within the IRS working identity theft cases.

  3. Policy Owner - The owner of the policies contained herein is the Director, Accounts Management.

  4. Program Owner - The Director of Accounts Management is the program owner.

  5. Primary Stakeholders - The primary stakeholders are organizations that Accounts Management collaborates with, such as Return Integrity and Compliance Services (RICS), Compliance and Submission Processing.

  6. Program Goals - Program goals for this type of work are included in the Accounts Management Program Letter.

Background

  1. Employees in the Identity Theft Victim Assistance (IDTVA) organization process identity theft (IDT) claims and respond to IDT victims’ phone inquiries.

Authority

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

Responsibilities

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

  2. Additional information is found in IRM 1.1.13.7.3, Accounts Management, and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Controls

  1. Program Reports - For reports concerning quality, inventory, aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be reviewed by accessing Control Data Analysis, Project PCD. They are located on the Control-D/Web Access server, which has a login program control.

  2. Program Effectiveness - Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidelines to perform necessary account actions and duties effectively and efficiently.

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

Terms/Definitions/Acronyms

  1. Refer to the table below for a list of acronyms used throughout IRM 25.23.4.

    Note:

    This list may not be all inclusive.

    Acronyms Definitions
    AC Action Code
    ACSS Automated Collection System Support
    AM Accounts Management
    AMS Accounts Management System
    ASED Assessment Statute Expiration Date
    ASFR Automated Substitute for Return
    AUR Automated Underreporter
    BFS Bureau of Fiscal Service
    BMF Business Master File
    CC Command Code
    CCA Complete Case Analysis
    CDS Centralized Delivery Service
    CEAS Correspondence Examination Automation Support
    CI Criminal Investigation
    CIS Correspondence Imaging System
    CN Common Number
    CSR Customer Service Representative
    DITA Designated Identity Theft Adjustment
    EGC Employee Group Code
    EIN Employer Identification Number
    ES Estimated Tax
    EUP Employee User Portal
    FRP Frivolous Return Program
    FTC Federal Trade Commission
    FTF Failure to File
    FTP Failure to Pay
    HC Hold Code
    HQ Headquarters
    IAT Integrated Automation Technologies
    ICT Image Control Team
    IDRS Integrated Data Retrieval System
    IDT Identity Theft
    IDTVA Identity Theft Victim Assistance
    IDTVA-A Identity Theft Victim Assistance Accounts Management
    IDTVA-I Identity Theft Victim Assistance IPSU
    IJE Invalid Joint Election
    IMF Individual Master File
    IPSU Identity Protection Specialized Unit
    IRM Internal Revenue Manual
    IRSN Internal Revenue Service Number
    ITAR Identity Theft Assistance Request
    ITIN Individual Taxpayer Identification Number
    MeF Modernized e-File
    MXEN Mixed Entity
    OAR Operations Assistance Request
    P&A Planning & Analysis
    PC Priority Code
    POC Point of Contact
    RGS Report Generation Software
    RICS Return Integrity and Compliance Services
    RIVO Return Integrity & Verification Operations
    RO Revenue Officer
    RPD Return Processable Date
    RPM Return Preparer Misconduct
    RPO Return Preparer Office
    RSED Refund Statute Expiration Date
    RTF Return Transaction File
    SC Source Code
    SCRM Scrambled SSN
    SDC Scheme Development Center
    SLA Service Level Agreement
    SP Submission Processing
    SSA Social Security Administration
    SSN Social Security Number
    TAC Taxpayer Assistance Center
    TAS Taxpayer Advocate Service
    TC Transaction Code
    TCIS Treasury Check Information System
    TIF Taxpayer Information File
    TIN Taxpayer Identification Number
    TOP Treasury Offset Program
    TPP Taxpayer Protection Program

Related Resources

  1. This section provides Individual Master File (IMF) CSRs/TEs with the resources and guidance to resolve taxpayer (TP) identified and IRS identified identity theft cases, including general procedures for cases with Compliance involvement.

  2. CSRs/TEs should utilize and become familiar with the IRMs below in conjunction with IRM 25.23.4 to aid them in accurately resolving their case and/or routing cases to other functions, when applicable.

    • IRM 3, Submission Processing

    • IRM 4, Examination Process

    • IRM 5, Collecting Process

    • IRM 20.1, Penalty Handbook

    • IRM 21, Customer Account Services

    • IRM 25, Special Topics

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

    • IRM 25.23.2, Identity Protection and Victim Assistance - General Case Processing

    • IRM 25.23.3, IMF Identity Protection Specialty Unit (IPSU) Paper Overview and Guidance

    • IRM 25.23.9, BMF Identity Theft Processing

    • IRM 25.23.10, Compliance Identity Theft Case Processing

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

    • IRM 25.23.12, IMF Identity Theft Toll-Free Guidance

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

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

  3. Employees of Identity Theft Victim Assistance (IDTVA - Accounts Management and Specialty Functions) are responsible for keeping current with the following resources:

    • Identity Theft Victim Assistance (IDTVA) Service Level Agreement (SLA)

    • Identity Theft Memorandums of Understanding (MOUs) and Interim Guidance Memoranda (IGMs)

    • Identity Theft Victim Assistance Hub (IDTVA Hub)

    • ID Theft Resource Page and Technical Communication Documents (TCDs)

    • SERP Alerts

  4. Employees of IDTVA are also responsible for keeping current with IRM provisions specific to resolving Compliance identity theft account referrals from:

    • Automated Collection System Support (ACSS)

    • Automated Substitute for Returns (ASFR)

    • Automated Underreporter (AUR)

    • Compliance Services Collection Operation (CSCO)

    • Monitoring Offer In Compromise (MOIC)

    • Centralized Offer in Compromise (COIC)

    • Doubt as to Liability (DATL)

    • Correspondence Examination (Exam)

    • Taxpayer Advocate Service (TAS)

Identity Theft (IDT) Paper Process Overview

  1. This section of the IRM provides guidance primarily for use by IDTVA for the research and resolution of tax-related identity theft cases. Additional information in IRM 25.23.10, Compliance Identity Theft Case Processing, provides procedures specific to cases involving compliance issues.

  2. Cases may initially be taxpayer identified identity theft claims or IRS identified.

    Note:

    Per Exhibit 25.23.1-1, Glossary of Identity Protection Terms and Definitions, an identity theft claim refers to any combination of Form 14039, Identity Theft Affidavit, or a police report or, for other than Compliance functions, a written statement from the taxpayer that they are, or may be, a victim of identity theft. Cases that are referred to IDTVA from a Compliance function must include a Form 14039 or police report to be considered an identity theft claim.

  3. Identity theft returns filed to generate a fraudulent refund may show the following characteristics:

    • Refundable credits claimed, no Form W-2 income included

    • Adoption credit

    • First-time Homebuyer Credit

    • Refundable Education Credit (Form 8863)

    • Only Education Credits of $1,000 claimed on return

  4. Cases generally fall into one of two treatment streams:

    • Streamline identity theft case processing - the identity theft return can be nullified

    • Non-Streamline identity theft case processing - the identity theft return cannot be nullified and must be processed to an IRSN

  5. When possible, cases will be resolved based on information provided and/or directly available. If a determination cannot be made based on the information provided and/or directly available, guidance will be followed for communicating with the taxpayer(s).

  6. Steps for resolution of IDT cases are generally based on one of the following scenarios:

    • Invalid return/valid return - no lost refund

    • Invalid return/valid return - lost refund

    • Valid return/invalid return - no lost refund

    • Two or more invalid returns (no valid return) - no lost refund

    • Two or more invalid returns (no valid return) - lost refund

    • One invalid return only - no lost refund

    • One invalid return only - lost refund

  7. The subsections that follow provide details on the assignment of work, management of inventory, and applicable research and resolution processes, etc.

  8. ITVA headquarters provides various reports to IDTVA P&A for inventory management purposes. Recommended uses for the reports are outlined individually.

    • AUR Analytics Data Retrieval (ADR) Report - See Exhibit 25.23.4-15, ITVA HQ AUR ADR Report - For Use by IDTVA P&A Only.

    • Balance Due Receipts Listing - See Exhibit 25.23.4-16, ITVA HQ Balance Due Receipts Listing - For Use by IDTVA P&A Only.

    • Disaster -O Freeze Listing - See Exhibit 25.23.4-17, ITVA HQ Disaster -O Freeze Listing - For Use by IDTVA P&A Only.

    • Freeze Code -L Listing - See Exhibit 25.23.4-18, ITVA HQ Freeze Code -L Listing - For Use by IDTVA P&A Only.

    • Freeze Code Z Listing - See Exhibit 25.23.4-19, ITVA HQ Freeze Code Z Listing - For Use by IDTVA P&A Only.

Case Assignment and Inventory Management - General Guidance

  1. In general, identity theft cases will be scanned into the Correspondence Imaging System (CIS) and assigned to employees through the Centralized Work Distribution (CWD) process.

  2. The Correspondence Imaging System (CIS) has been updated with identity theft CIS Logic to assign/associate newly scanned work to CSRs with existing controls. This is to be consistent with note/guidance under (2) of IRM 21.5.2.3, Adjustment Guidelines - Research.

  3. The Automated Age Listing (AAL) and Multiple Control Listing (MCL) are used to monitor and manage assigned inventory.

  4. Identity theft cases are priority work per IRM 25.23.2.2.2, Priority Handling of Identity Theft Cases.

  5. If multiple controls are present on your case, link cases following guidance in IRM 21.5.1.5.1, CIS General Guidelines.

  6. Update the Category Code, when appropriate. Use the table in Exhibit 25.23.4-7, Identity Theft (IDT) Multiple Control Decision Document, to determine the appropriate IDT Category Code.

    Example:

    If an IDT4 was recently assigned to you because you have an open IDS3 or IDT3 for the same tax period, you would update the surviving Category Code to IDS1 or IDT1. If you have an IDI1, IDS1 or IDT1 for a different tax period, you must manually revise the IDT4 to the appropriate IDI/IDS/IDT category on CIS.

  7. IDTVA Specialty Function teams utilize CIS. If a case is open in one of the Compliance functions (AUR, Exam, ASFR, etc.) with an IDT allegation, do not refer the case to the Compliance function. Reassign the case to the appropriate IDTVA Specialty Function following Exhibit 25.23.4-5, IDTVA Routing Matrix.

  8. In addition to guidance found in IRM 21.5.1.4.2.6, Adjustments Case Management by Customer Service Representative (CSR), IDTVA employees will review the identity theft inventory on their Automated Age Listing (AAL) to identify and take action, when appropriate, to refer cases to IDTVA Specialty Functions and/or interrupt collection activity. Failure to make timely referrals to IDTVA Specialty Functions can result in default assessments requiring reconsideration activities and failure to interrupt collection activity results in undue burden, further victimizing the taxpayer.

    Reminder:

    If the taxpayer’s account reflects a MF or SC collection status, refer to guidance in IRM 25.23.4.12,Collection Activity - Form 14394/13794, to interrupt collection activity while the case is worked.

CIS and IDRS Case Controls

  1. All identity theft (IDT) cases are required to have a CIS control. The Image Control Team (ICT) creates a CIS case for the tax year identified via the taxpayer’s correspondence. The creation of the CIS case will open the initial IDRS control base. If multiple tax years are listed, ICT will create the CIS case for the earliest year identified. Review the taxpayer’s correspondence and perform Complete Case Analysis (CCA) to determine if there are any other IDT impacted tax years. A new CIS case must be opened for all tax years discovered to be impacted by IDT. Do not update your existing CIS case to reflect each year as they are worked. These controls should prevent other areas from adjusting an account without making contact. If there are multiple function controls on a case, use Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing, to determine where to route the case.

    Note:

    "IDT impacted tax years" includes income/employment related tax year(s) identified through Complete Case Analysis (CCA). All related CIS cases must be linked, including XREF TINs, cases previously resolved, and new cases created as a result of CCA.

    Exception:

    Do not create a CIS control or input a TC 290 .00 with a Reason Code 139 if the following conditions exist:
    - There is no TC 150 present on the account.
    - No tax module exists.
    - The module is in retention (unless reversing a tax offset will create a balance due or it is necessary to resolve the taxpayer issue to make the taxpayer whole).
    - When an impacted module is not active on IDRS CC: TXMOD and is not yet in retention. Do not input IDRS CC: MFREQ.

    Note:

    Use of the IAT xClaim tool to input the TC 290 .00 with RC 139 will prevent unnecessary modules being made active with IDRS CC MFREQ.

    Reminder:

    Whenever possible, multiple claims from the same taxpayer will be processed by the same employee. Coordination of these same taxpayer, multi-year claims is necessary to ensure consistent processing.

  2. When opening a control, the "IRS Received Date" field will be the earliest IRS received date of the correspondence or identity theft claim for the case control being opened, or the date of the IRS identified determination. This date should not be changed unless through research an earlier received date is found. IDT3, IDS3, IDT6, and IDS6 cases that are created from the generation of a transcript will retain the IRS received date used at case creation. This date will not be changed. Additionally, impacted modules not listed on the claim that are identified through Complete Case Analysis (CCA) will have controls created using the current date as the IRS received date.

    Reminder:

    A case should rarely be opened from archive and should not be if the case cannot be closed the same day. If not closing the same day, create a new CIS case and link to the archived case with the new IRS received date.

    Caution:

    The IRS received date of IDT3, IDS3, IDT6, and IDS6 CIS cases may not be the appropriate date for necessary adjustments and/or determinations of credit availability for refund or offset. Thorough research must be conducted to ensure the correct date is used for these actions.

  3. The control base will be in case status "A" while the IDT determination is in process.

  4. If all case actions have been completed and you are monitoring the account to ensure "ALL" account actions are resolved, close the case and establish a monitor base on IDRS using Category Code "MISC" with the current date as a received date. Examples of possible actions that may need to be monitored include credit transfers, lost refund actions, excess collections file transfer, manual refunds, etc.

    Note:

    When establishing this monitored control base, using an asterisk "*" will generate the current date when used with Command Code ACTON.

    Example:

    There is a TOP Offset with no lost refund on the account. Take all necessary actions to resolve the IDT issue. Input the TOP offset reversal. After all account actions have been taken, close the CIS case and open a monitoring control using Category Code "MISC" until the posting of the TC 766 to ensure a credit is not left on the account.

  5. When resolution of the identity theft issue requires reversal of a TOP offset that is more than 6 years old, contact the TOP offset Liaison, per IRM 21.4.6.4.2.12 (5),Top Offsets Involving ID Theft and ID Theft with Fraudulent Returns, and input the adjustment to correct the account. Once all required IDT account actions have been completed, the IDT control can be closed. It may take 180 days or longer for the TC 700 to post. A monitoring control with Activity "PNDMRR/###" and category "MISC" will be opened by the assigned employee. Once the reversal posts, complete all other required actions.

  6. If an IDRS control base is created to IDTVA in error, update the Activity Code to "OPNDNERR" and the Category Code to "MISC" prior to closing the case.

  7. Specific activity codes were created to easily determine the status of the IDT case. Use of these activity codes is encouraged for all functions. See Exhibit 25.23.4-11, IDRS Activity Codes and Definitions, for more information.

Case Transfer within IDTVA

  1. Generally, case transfers will occur when more than one IDTVA function has an open case control. To better assist the taxpayer and ensure end to end account resolution, one employee will take responsibility for the case. Refer to Exhibit 25.23.4-5, IDTVA Routing Matrix, to determine ownership of the case.

  2. Examiners will check IDRS for multiple IDTVA open controls on the same or other tax periods for one taxpayer.

  3. All issues should be worked by the same employee. This will prevent duplication of work, potential unpostables, and incorrect adjustments on a module.

  4. In most cases, the employee with the earliest IDTVA control date will work all tax years. However, cases involving AUR and Exam adjustments may need to be referred to the applicable Specialty Function for resolution.

  5. If any control bases are in Status A, B, or M with IDT involvement, the assigned employee must be contacted to request reassignment or closure of the CIS case before taking action on the account. Once contact is made with the assigned employee or their manager, allow 3 business days for a response before continuing with case actions.

  6. All referrals within IDTVA will be made using the Correspondence Imaging System (CIS).

Cases Requiring Routing/Reassignment to Other Functions

  1. Review documentation submitted by the taxpayer to determine if your case should be retained or routed/referred to another function. Refer to the following IRM sections for additional guidance:

    • Exhibit 25.23.4-4, Identity Theft (IDT) Functional Routing and Referral Chart

    • Exhibit 25.23.4-5, IDTVA Routing Matrix

    • Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing

    • IRM 25.23.2.4.3, Tracking Individual Taxpayers Reporting to be Victims of Business-Related Identity Theft.

    Reminder:

    Before referring the case, review guidance in IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office,

    to determine if the 86C letter is required.

    Note:

    Letter 86C is not required if the case is being transferred within IDTVA, through CIS, or to another function in the same location.

IDTVA Specialty Functions - Case Referrals from Compliance Functions

  1. Identity theft (IDT) allegations received in campus Compliance functions will be referred to the appropriate IDTVA function when:

    1. A Form 14039, Identity Theft Affidavit, or police report is included in response to a letter/notice.

    2. IDRS CC ENMOD contains an unreversed TC 971 AC 522 with the literal UNWORK.

    3. IDRS CC ENMOD contains an unreversed TC 971 AC 522 with the literal PNDCLM and there is a CIS Image of Form 14039 or police report available on AMS.

    4. There is an open control to an IDTVA employee (i.e., IDTX or IDIX) for the tax year in question.

  2. If the account contains one of the following TC 971 Action Codes for the tax year in question, the IDT issue may have been previously resolved.

    Action Code Literals
    501 INCOME, MULTFL, INCMUL, NOFR, OTHER, DECD, or PRISNR
    504 ACCT, BOTH, NKI, EMPL
    506 INCOME, MULTFL, INCMUL, NOFR, OTHER, DECD, or PRISNR

  3. Responses regarding functional Compliance issues should be kept and worked by the same function. If a referral is received and the account contains one of the TC 971 Action Codes in paragraph (2) above, a designated technical individual will review the referral and take the following action:

    If the new information/referral Then
    (1) Addresses an outstanding Compliance issue and will not impact IDTVA’s previous determination, Reject the case back to the Compliance function that made the referral.
    (2) States the remaining issues are attributable to the previous identity theft claim or provides new information that may allow us to revise our previous determination, Accept the referral.

  4. If the account contains a TC 972 with the literals NOIDT or NORPLY, follow the table in (3) above.

  5. Ensure that all referrals received from another area meet the requirements to be worked by IDTVA. If requirements are not met, return any cases back to the referring function.

    Note:

    Use the "Reassign" option to return a case that was referred through the CIS system.

    Exception:

    If a CIS case was created for a case that met rejection criteria but was accepted in error, the case will not be rejected by the assigned employee. Use internal information and/or information already provided by the taxpayer to determine the CN owner. When a CN ownership determination cannot be made from available information, refer to IRM 25.23.2.3.5, When to Request Additional Information to Support an Allegation of Identity Theft.

  6. Any IDTVA-A or AM referrals must meet requirements listed in paragraph (4) of IRM 21.3.1.5.53, Status Of Individual Master File (IMF) Underreporter Cases.

  7. For any other referral, including referrals such as TAS, ITAR, IPSU, etc., ensure the account includes a Compliance issue on at least one tax year.

Priority Codes for IDTVA CIS Cases

  1. All identity theft (IDT) cases should be treated as priority, however some cases require immediate attention.

  2. IDTVA Priority Codes used by all IDTVA employees are listed below.

    Priority Code Definition
    Priority Code 6
    • The Economic Impact Payment (EIP) can be issued systemically after corrective action

    Priority Code 7
    • EIP referrals for adjustment

  3. IDTVA-A Priority Codes are listed below.

    Priority Code Definition
    Priority Code 1
    • IDT7 Cases - requests for copies of fraudulent returns

    Priority Code 2
    • Refer to Exhibit 25.23.4-8, Order of Priority Listing - IDTVA-A and IDTVA Specialty Functions

  4. IDTVA Specialty Functions Priority Codes are listed below. When sending a case to ICT for scanning to CIS, certain cases will require a Priority Code to be noted on the batch sheet, as applicable.

    Priority Code Definition
    Priority 1
    • TAS case - Form 12412, Operations Assistance Request (OAR)

    • Form 14103, Identity Theft Assistance Request (ITAR)

    • Form 14027-B, Global Review Referrals

    • Refund Hold

    Priority 2
    • For Statute Imminent cases and for cases that have had a Statutory Notice of Deficiency issued and the taxpayer still has time to petition tax court.

    • IDT6/IDS6 transcript cases.

    • Referrals from OIC (CSCO Specialty only)

    • Form 3870 Field referrals

    Priority 3
    • For all open AUR or open Exam cases

    Blank
    • All other inventory will be worked in IRS received date order

  5. It may be necessary to update the Priority Code of a case as it is processed.

    Example:

    The case was originally built/scanned with no Priority Code. During the time the case is waiting to be worked, TAS issues an OAR for the account. Using the ‘Update Data’ button in the Case Data section of your CIS case, the Priority Code would need to be updated to Priority Code "1" .

    Example:

    The case was originally built/scanned with no Priority Code. During the time the case is waiting to be worked, the account comes within 180 days of the ASED expiring. The Priority Code would need to be updated to Priority Code "2" .

  6. Refer to specific functional IRMs for additional cases that may require immediate attention.

Taxpayer Inquiries Involving Identity Theft (IDT)

  1. Taxpayers indicate IDT by submitting Form 14039, a police report, or a similar statement.

    Note:

    If the taxpayer inquiry requires translation into English, refer to guidance in IRM 25.23.4.19, Requesting Translations of Certain Languages.

  2. After research is completed, the case will generally be identified as one of the following types:

    • A mixed entity case

    • A scrambled SSN case

    • An IDT case that you can resolve

    • An IDT case that should be routed or reassigned

    • A non-IDT case (e.g., in some instances you may discover the case involves multiple returns filed by the SSN owner; a normal DUPF case)

  3. Refer to guidance in IRM 21.6.2, Adjusting TIN-Related Problems, for processing mixed entity and scrambled SSN cases.

  4. The following are examples of taxpayer inquiries involving IDT.

    1. Examples of tax-related IDT involving two or more returns include, but are not limited to, references to a Letter 673C, a notice of tax due, references to an attempt to e-file a return that was rejected due to a return already having been filed, a missing refund, or the amount of the refund is different than the amount claimed, etc., and the taxpayer claims she/he did not file more than one return.

    2. Examples of tax-related IDT involving only one posted return include, but are not limited to, references to impact to Social Security benefits, impact to low income housing benefits, no filing requirement or below filing requirement, and the taxpayer claims she/he did not file a return.

    3. Examples of tax-related IDT involving secondary TINs on returns include cases in which taxpayers’ overpayments have been applied to accounts that show the taxpayers as secondary filers and the taxpayers claim they did not file as joint or secondary filers on the accounts. See IRM 25.23.4.8.1.4, Identity Theft (IDT) with Married Filing Joint Scheme Involvement, and IRM 25.23.4.8.1.4.1, Invalid Joint Election Consideration.

    4. Examples of tax-related IDT involve instances where income earned by someone other than the CN owner is present on CC IRPTRL and has resulted in a Compliance assessment.

    Note:

    For cases involving a dependent’s TIN, the TIN must have been used as a primary or secondary TIN on an invalid return to be considered tax-related IDT. If the TIN was only used as a dependent on a return, refer to paragraph (5) below regarding non-tax related IDT case processing.

  5. If research shows no indication of tax-related IDT:

    • Close the TXMOD control as "MISC"

    • Open a control on ENMOD with Category Code IDT4

      Note:

      If you determine the case was updated on CIS to Category Code IDT4 but remains open on CC TXMOD, update the MFT and Tax Period to all zeros (0), per IRM 3.13.6-14,Appendix N - Document Types, Category Codes, Priority Codes, IDT - IMF to establish the control on ENMOD.

    • Input TC 971 AC 504, if one is not already present for the year in question.

    Refer to resources provided in IRM 25.23.3.2.3, Self-Identified- Non-Tax Related Identity Theft - IDT4, for additional information.

  6. If the inquiry, Form 14039, Identity Theft Affidavit, or correspondence is received alleging return preparer misconduct (RPM) rather than ID theft, do not reassign or route Form 14039 alleging RPM to IDTVA. Unless the exception below applies, send an appropriate C letter advising the taxpayer the information they provided indicates there is an RPM issue and not an ID theft issue. Advise the taxpayer to complete and mail Form 14157, Return Preparer Complaint, and Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, along with the required documentation as outlined in the instructions for Form 14157-A. Please refer to IRM 25.23.1.1.1, Key Definitions, and IRM 25.24.1.3, Identifying Potential RPM Issues For Telephone Assistors/Taxpayer Assistance Center (TAC) Assistors, for assistance in determining if there is a possible return preparer misconduct issue.

    Note:

    Enter CIS Case Note, "NO ID theft - RPM issue." Input TC 972 AC 522 with Tax Administration Source Code "NOIDT" and the tax year associated with the alleged IDT incident, if appropriate. Refer to IRM 25.23.2.6.6, Reversing Unsupported Allegations of Identity Theft, for additional information.

    Exception:

    If a –A freeze is present or an unprocessed valid return is scanned to the CIS case, and there is indication of RPM, do not release the –A freeze or send the return for processing, reassign to RPM per IRM 25.24.1.4.1, Routing Information - Paper.

  7. For cases where tax related identity theft is indicated by the taxpayer, update the Category Code to IDT1/IDS1 if it has not already been done.

    Note:

    IDTVA Specialty Functions do not change Category Codes. All cases remain in the function’s Category Code.

    Exception:

    Change the category code when resolving an IDT4 case.

  8. Perform complete and careful research on each case, per IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and the related subsections to make a determination.

  9. If a determination cannot be made based on the information directly available, refer to guidance in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), to initiate communications with the taxpayers.

IRS Identified Identity Theft (IDT)

  1. IRS identified cases of IDT are generally associated with IRS programming, filters, transaction codes and/or research of filing history.

  2. The following items may be indicators of current or prior identity theft:

    • Previously posted TC 971 AC 501/506 or a TC 971 with AC 522.

    • Evidence of a prior "CP 36I" transcript or "SPC 8" , which are generated when a taxpayer sends in a Form 14039, a police report or a similar statement.

    • The presence of a CP 36U transcript that generates an IDT1 or CP 36V transcript that generates an IDT3. These transcripts are generated based on prior identity theft indicators on IDRS; TC 971 AC 501 for taxpayer identified IDT or TC 971 AC 506 for IRS identified IDT.

    • The presence of a CP 36N or CP 36P transcript. These generate when a CP 05A is present on the module, which indicates current or prior RIVO involvement. The CP 36 N generates when a CP 05A is present and the module has a credit balance. The CP 36 P generates when a CP 05A is present and the module has a zero or debit balance.

    • The presence of a CP 36 or CP 36F transcript where return content and/or filing is inconsistent with the taxpayer’s filing history.

  3. For cases where tax related identity theft is IRS identified, update the Category Code to IDT3/IDS3 if it has not already been done.

    Exception:

    Cases with RIVO involvement must be closed with the IDT8/IDS8 category code, unless the case meets criteria in IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO Involvement, paragraph (5).

    Note:

    IDTVA Specialty Functions do not change Category Codes. All cases remain in the function’s Category Code.

  4. Complete and careful research must be performed on each case per IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and the related subsections to determine the owner of the TIN.

  5. If a determination cannot be made based on the information directly available, refer to guidance in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), to initiate communications with the taxpayer(s).

Research, Actions and Complete Case Analysis - Overview

  1. Complete and careful research must be performed on all cases. Employees outside of IDTVA are responsible for taking appropriate actions prior to reassigning a case to IDTVA.

  2. Upon recognition of a case as an IDT case, also perform the following actions:

    • Determine if a TC 971 AC 522 is required and, if appropriate, whether the TC 971 AC 522 reflecting an appropriate Tax Administration Source Code has been input on CC ENMOD. See IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, for additional information.

    • If the account reflects a balance due on Service Center or Master File, input TC 470 CC 90 to prevent balance due notices from generating and offsets into the module.

    • Ensure Letter 5073C, CP 01S, or CP 701S was issued/is issued to acknowledge receipt of Form 14039, Form 14039 (SP), a police report, or a similar statement related to identity theft. See paragraph (5) of IRM 25.23.2.3, Identity Theft Claims - General Guidelines, for additional information.

      Note:

      The acknowledgement letter is not required for IRS identified IDT cases.

    • Perform a complete statute search and leave a case note that indicates the case is related to an IDT issue. Statute expiration must be considered to prevent barred assessments.

    • Determine the correct Category Code, Doc Type, etc. Update CIS and the Statute Clearance check box, when appropriate, when reassigning to a CIS user. Leave a note on CIS if one is not generated.

    • If you can determine which return is valid/invalid, leave a case note indicating valid/invalid or invalid/valid etc.

    • Ensure all relevant documents have been scanned to the case.

    • If reassigning the case, after performing the actions above, reassign the case to the IDT holding number. International cases should be reassigned to the International holding number. Both IDRS numbers can be found on the Accounts Management Site Specialization Temporary Holding Numbers Listing, located on SERP. See the CIS Performance Guide – CSR Guide, for the correct procedures on these required actions. Also see paragraph (10) of IRM 21.5.1.5.2, Cases Currently Assigned in CIS, for additional information.

      Note:

      A case reassigned to the Centralized Distribution Site (CDS) in error may be returned to the originating site. Reassigning cases in error can result in an adverse impact to the taxpayer and delay the processing of their case.

      Exception:

      IDTVA employees will continue to resolve the case or route/reassign the case, if applicable. Before proceeding, if the case should be assigned/routed to another area (e.g., AUR, Exam, etc.) or employee, refer to IRM 25.23.4.3.2, Case Transfer Within IDTVA, and IRM 25.23.4.3.3, Cases Requiring Routing/Reassignment To Other Functions, for additional guidance. If the case does not require reassignment/routing, proceed to the next IRM sections that apply to your case.

      Note:

      IDTVA-A employees - do not reassign the following transcripts to IDTVA Specialty Functions unless there is an open/active claim or involvement: TRNS 36, 36D, 36I, 36N, 36P, 36S, 36U and 36V.

  3. Guidance in IRM 21.3.3.1.8, Policy Statement P-21-3 (formerly P-6-12), directs us to issue timely and quality responses to taxpayer correspondence. The "IDT1/IDS1," "IDIX" , or "TPRQ" cases described in this subsection are, according to Policy Statement P-21-3, considered correspondence. Generally, the response provided to the taxpayer who has submitted this type of correspondence is the closing Letter 4674C, or Letter 5064C, for additional guidance, or CP 01 notice informing the taxpayer that we have made an SSN ownership determination. A response, as described here, is considered timely if issued within 180-days of the received date of the "notification" "IDT1/IDS1" , or "TPRQ" document.
    If a closing response cannot be issued by the 180th day in this situation, an interim letter must be sent informing the taxpayer that we require additional time to complete the processing of their case. The time frame given in this interim letter may not exceed 60 days.

    Note:

    The issuance of a closing letter may or may not coincide with the complete resolution of the case. The closing letter is sent when we can share with the taxpayer the results of our processing of the case, e.g., we have made an ownership determination. Do not wait until all resolving actions, e.g., TOP offset reversal transfer procedures, have been completed before sending a closing letter.


    If additional interim letters are needed, the time frame given in the letter must not exceed 60 days. Every effort, however, must be made to provide a closing response within the initial 180 day time frame.

    Caution:

    A reasonable effort must be made to respond or send an interim letter within the time frame previously given. Such an effort is considered reasonable if it does not hinder the primary objective of resolving the IDT condition and issuing a quality closing response.

    Caution:

    Be sure you are sending any necessary letters to the correct address. The Correspondex letter system will default to the Address of Record which may or may not be the correct address for your correspondence. Override the Address of Record when appropriate.

Required Research

  1. Make every effort to locate the correct TIN for each taxpayer before contacting the taxpayer(s) for additional information. Research the TIN (valid and invalid) to determine if there was an identity theft (IDT), mixed entity (MXEN), or scrambled SSN case (SCRM/SSA2) in prior and/or subsequent years. Complete research is essential to determining the necessary corrective actions. Attempt to locate any possible cross-reference TIN. You may identify a cross-reference TIN assigned to a taxpayer who filed a return under the common number (CN) that was determined to be due to identity theft. Internal Revenue Service Numbers (IRSNs) are temporary numbers issued by the IRS and are always on the invalid segment of Master File. The invalid segment is indicated by an asterisk (*) following the last digit of the TIN. For purposes of identifying the correct TIN-related issue, refer to the following definitions:

    • Identity Theft (IDT) - the intentional misuse of a taxpayer’s personal information/TIN to commit, or attempt to commit, tax-related fraud.

    • Mixed Entity (MXEN) - the unintentional misuse of a taxpayer’s TIN due to an inadvertent taxpayer error, tax return preparer error, Marketplace error, or IRS processing error.

      Note:

      A separate TIN can be identified for the taxpayer who has filed under the CN in error.

    • Scrambled SSN (SCRM/SSA2) - multiple individuals using the same SSN, and the true owner cannot be determined. The Social Security Administration (SSA) has issued the same SSN to more than one individual.

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

  3. When ICT is unable to determine the correct TIN, the CIS case is assigned to all zeros. Additional research is required to locate a TIN for the taxpayer. Using IDRS CC NAMES or NAMEI, input the taxpayer’s name and address information to search for a TIN. To do a broad search, input the taxpayer’s name and only the first 3 digits of their zip code. The results will include taxpayer information from areas surrounding the current address. Consider the following possibilities when conducting research using CC NAMES and NAMEI:

    • The taxpayer may share their name with a parent or child.

    • The taxpayer’s current address may be different than the address reflected on their account.

    • The taxpayer’s name may have included a hyphenated last name or variation in spelling of their name due to typographical errors by the taxpayer, a preparer, or the Service.

  4. Once you have completed the necessary research, see the table below:

    If Then
    (1) A TIN cannot be located and there is sufficient mailing information on the complaint, Issue Letter 5064C to the taxpayer requesting the taxpayer’s TIN and any other required IDT documentation. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written.
    (2) No response is received, Issue a Letter 4674C to advise the taxpayer no action can be taken, since we have no record of a response being received.
    (3) Correspondence cannot be issued, Leave a CIS case note stating there is insufficient information to issue correspondence and close the case no action.

  5. When working ITIN cases, you must research under the relevant SSN used for income reporting. Use EUP/ITIN RTS to research ITIN application and assignment information. It is not necessary to request original Form W-7, Application for IRS Individual Taxpayer Identification Number, documents to conduct required research. Using IDRS CC NAMES or NAMEI, input the taxpayer’s name and address information to search for a TIN. To do a broad search, input the taxpayer’s name and only the first 3 digits of their zip code. The results will include taxpayer information from areas surrounding the current address. Consider the following possibilities when conducting research using CC NAMES and NAMEI:

    • The taxpayer may share their name with a parent or child.

    • The taxpayer’s current address may be different than the address reflected on their account.

    • When the taxpayer files as married filing joint, research of the spouse’s TIN may lead to identification of valid TIN information for the taxpayer you are researching.

    • The taxpayer’s name may have included a hyphenated last name. When the taxpayer has a hyphenated last name, complete research under each last name separately in addition to the hyphenated name. Research the valid and invalid sides of the TIN. Returns may post to the invalid side of a TIN due to a name control mismatch.

      Note:

      An ITIN may have been assigned using only one last name. Through review of the information on Form W-7, you may be able to determine the taxpayer’s valid TIN by matching address and/or spouse information to the application for an ITIN.

      Reminder:

      The Protecting Americans from Tax Hikes Act (PATH Act) was enacted December 18, 2015 and mandates ITIN renewal requirements. An expired ITIN is not a revoked ITIN. Once an ITIN is assigned, it belongs to that taxpayer unless revoked. Revoked ITINs are not recycled. An expired ITIN will be identified by "Inactive" displayed in the ITIN Status field on ITIN RTS, an ITIN Status of "I" on CC INOLES, and TC 971 AC 193 on CC ENMOD/IMFOLE. For additional information on TIN-related credits limited by the PATH Act, see IRM 3.11.6.9.3, Protecting Americans from Tax Hikes (PATH Act).

    Note:

    For ITIN cases, if the Form W-7, Application for IRS Individual Taxpayer Identification Number, clearly indicates which taxpayer was assigned the ITIN, make a notation of this for the CSR/TE who will be working the case, after reassignment from the Centralized Delivery Service (CDS).

  6. To correct tax-related IDT problems, you must be familiar with the following research elements and systems:

    • Entity module

    • Tax module

    • Transaction Codes

    • Reason Codes

    • Posting Delay Codes

    • Hold Codes

    • Unpostable Codes

    • Retention Register - Request a Retention Register transcript only if the account cannot be reactivated by using Command Code IMFOL with definer "B."

    • Command Codes, including NAMES, INOLE, DDBKD, DUPOL, MFTRA, IMFOL, RTVUE, FFINQ, REINF, TRDBV, IRPTR, ENMOD, TXMOD, TPIIP, DFAST and FINDS with various definers and systems, such as TCIS or ACCURINT.

      Note:

      Some of the Command Codes and/or systems listed are applicable to the IDTVA Specialty Functions only (e.g., ACCURINT and DFAST).

    • NUMIDENT (for SSN research only)

    • Collection status - If the taxpayer’s account is in ACS status, refer to guidance in IRM 25.23.4.12, Collection Activity - Form 14394/13794, to interrupt collection activity while the case is worked.

  7. The research and tools necessary for accurately processing an IDT case includes, where applicable, and is not limited to the following:

    • Utilizing the IAT aMend tool. The IAT aMend tool is mandated for use by all employees working all IDT cases, which includes streamline and non-streamline cases. See Exhibit 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, for a list of tools required for IDTVA.

    • Utilizing the Correspondence Imaging System (CIS) and all applicable and available internal research systems to review all related cases, whether open or closed.

    • Utilizing the Correspondence Imaging System/Accounts Management System (CIS/AMS) to review all related documents and/or attachments. Also refer to IRM 25.23.4.3, Case Assignment and Inventory Management - General Guidance, for additional guidance.

    • Utilizing the ITIN Real Time System (RTS) to research and review data related to assigned, suspended and/or rejected Form W-7, Application for IRS Individual Taxpayer Identification Number. RTS is a tool located within the Employee User Portal (EUP). Online 5081 permission and access are required. See IRM 3.21.263.9.1.2, Accessing and Logging onto ITIN RTS, and IRM 3.21.263.9, General Instructions for ITIN Navigation (ITIN RTS), for additional information.

      Note:

      The Form W-7 application's Document Locator Number (DLN) is only available on RTS.

    • Analyzing the account history for:
      Number of years the TIN has been used for filing returns
      Filing status changes
      Method of filing, electronic or paper
      Previous adjustments
      Filing dates of original and duplicate returns
      TC 971 Transaction Codes

    • Utilizing NAMES to identify and locate all related TINs for all tax years

    • Utilizing RTVUE to determine items of information such as:
      Address for the first return(s) filed
      Dependents
      Type of income
      Filing Status
      Schedules and Forms filed

    • Utilizing MeF to perform research of electronic filing activity (example of results could be an IDT return accepted by MeF, but subsequently deleted from processing by SP; data may not be present on TRDBV)

    • Utilizing TRDBV to determine items of information such as:
      Wage information details
      Occupation
      Tax Return Preparer
      Requested method of disbursing overpayment, electronic or by mail

    • Utilizing INOLE to determine items of information such as:
      Date of birth
      Previous names
      Spouse's TIN
      Other related TINs

    • Utilizing IRPTR to perform research actions and determine items of information such as:
      Comparative review of reported income and payor information
      Previous and current employers
      Previous addresses

    • Signatures (except for e-filed returns when a signature is unavailable)

      Note:

      For additional signature requirements refer to IRM 21.6.7.4.9, Signature Verification.

      Note:

      A Form 14039 received from Federal Trade Commission (FTC) should be considered valid. A signature is no longer required for the IRS to accept the receipt of the Form 14039.

  8. Do not determine the validity of a social security card based on the word "VOID" on the photocopy. Placing the word "VOID" on a photocopy of a recently issued social security card simply indicates that the document is a photocopy of the original card.

  9. The receipt of a "notification" or an "incidental" Form 14039 or some similar type of information (e.g., a police report regarding IDT) requires you to change the category of the "DUPF" or MXEN case to "IDT1/IDS1" or to "IDT3/IDS3" , if the IDT was discovered by the IRS.

    Caution:

    When reviewing cases with similar or identical income, careful and thorough research must be performed to determine the correct TIN owner. With external data breaches on the rise, a valid return could easily be identified as a duplicate and/or amended return. Review the returns or IDRS for the following indications:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    This list may not be all inclusive.

     

  10. If you identify a TC 971 AC 123 with MISC "PREPARER CONTACT" , or the taxpayer provides a statement indicating they were potentially involved in a data breach incident, refer to IRM 25.23.4.8.1.5, Identity Theft (IDT) with External Business/Preparer Data Breach Involvement, for additional information.

  11. If you suspect the case is a scrambled SSN case, order a NUMIDENT. If the NUMIDENT supports a scrambled SSN case, refer to IRM 25.23.4.7, Non - Streamline Identity Theft (IDT) Case Processing, for additional required actions.
    For example, if it is necessary to initiate Letter 5064C, order NUMIDENT for use when asking supplementary questions per IRM 25.23.4.18.2.1, Telephone Contact Guidelines (Associated with the Letter 5064C Common Number Questionnaire).

    Caution:

    NUMIDENT is for internal use only; never send NUMIDENT to the taxpayer.

    Note:

    Only attach the NUMIDENT to the primary CIS case when a determination has been made that the NUMIDENT is required and necessary to resolve the case.

    Reminder:

    IDTVA Specialty Functions do not work scrambled SSN cases. These cases will be reassigned using the IDTVA Specialty CIS Reassignment Guide for Non-IDT Cases after resolution of all IDT impacted years.

  12. If a valid TIN can be located for each taxpayer and the CN is an SSN, change the Category Code to a MXEN. IDTVA-A employees should retain the case and resolve it. For additional guidance, see IRM 21.6.2.4.2, Mixed Entity Procedures.

    Reminder:

    IDTVA Specialty Functions do not work mixed entity cases. These cases will be reassigned using the IDTVA Specialty CIS Reassignment Guide for Non-IDT Cases after resolution of all IDT impacted years.

  13. If a valid different TIN cannot be located for at least one of the taxpayers, continue processing as an IDT case.

    The following items may be indicators of current or prior IDT:

    • Previously posted TC 971 AC 501/506 or 522.

    • The presence of a "CP 36I" transcript or "SPC 8" . These are generated when a taxpayer sends in a Form 14039, a police report, or a similar statement indicating identity theft. The SPC 8 also generates a TC 971 AC 522 on CC ENMOD and a CP 01S acknowledgement.

      Note:

      When a Form 14039(SP), a police report, or a similar statement is received in Spanish, the return is coded with "SPC S" , which generates the TC 971 AC 522 and a CP 701S acknowledgement.

    • The presence of a CP 36U transcript that generates an IDT1 or CP 36V that generates an IDT3. These transcripts are generated based on prior IDT indicators on IDRS.

    • The posting of a CP 36N or CP 36P transcript. These generate when a CP 05A is present on the module. The CP 36 "N" generates when a CP 05A is present and the module has a credit balance. The CP 36 "P" generates when a CP 05A is present and the module has a zero or debit balance. The cases have previous RIVO involvement.

     

  14. When a return is received from a taxpayer with a previous IDT indicator, a transcript (TRNS) 36V will generate. Any returns meeting this criterion must be processed. The return should be processed where received unless the account was not corrected properly. The case should only be reassigned if there are outstanding issues or questions on the previous account adjustments.

    Note:

    If the employee is not assigned to IDTVA, the case should be retained and worked where identified.

    Note:

    Transcripts can be identified on TXMOD by the presence of TC 971 AC 805 and a MISC code of TRNS 36, 36D, 36F, 36I, 36N, 36P, 36S, 36U, or 36V.

    Reminder:

    IDTVA-A employees - do not reassign the following transcripts to IDTVA Specialty Functions unless there is an open/active claim or involvement: TRNS 36, 36D, 36I, 36N, 36P, 36S, 36U and 36V.

    Example:

    A taxpayer is selected by Exam. The return selected is deemed an IDT return and nullified. IDTVA Specialty Exam determines the SSN owner has a filing requirement. A return was requested but not received. The account was backed out and the appropriate IDT indicator was placed on the account. Six months later, the SSN owner files a return. The return is received in IDTVA-A. The return will remain in IDTVA-A to be processed.

  15. For cases originally controlled with a non-IDT category code (e.g., DUPF, C36F, etc.), determine how the case should be categorized (e.g., IDT1/IDS1, or IDT3/IDS3, etc.) per Exhibit 25.23.4-9, Tax-Related Identity Theft (IDT) Work Types Listing.

IDTVA - Additional Research and Required Actions

  1. Identity theft cases will be either taxpayer identified or IRS identified. All taxpayer identified claims will be categorized as an IDT1 and all IRS identified cases as an IDT3, unless a pre-determination has been made.

    Note:

    IDTVA Specialty Functions cases are identified or categorized by "IDIX" where X = a digit from 1 to 9 depending on the function. See Exhibit 25.23.2-16, IDTVA IDRS Category Controls by Function, for additional details.

  2. For the majority of cases, you will be able to work them without obtaining additional information from the taxpayer. If additional information is needed to resolve the case, refer to guidance in IRM 25.23.2.3, Identity Theft Claims - General Guidelines, and IRM 25.23.2.3.5, When to Request Additional Information to Support an Allegation of Identity Theft.

    Reminder:

    If you can work the case utilizing internal resources, do not request unnecessary information from the taxpayer.

  3. If the case has already been assigned as an IDT8 case, this is a pre-determined streamline case. After reviewing the remainder of this IRM section, proceed to IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, for case resolution.
    A CN determination has already been made on these cases. If you have more than one tax year to resolve, each case should be resolved separately.

    Example:

    You may have one case where the pre-determination has already been made and another case that requires you to conduct additional research to make the CN determination. Use good judgement to determine when additional and/or extensive research is warranted.

  4. If the case has not been pre-determined, refer to IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, to determine if a streamline method can be used. Before proceeding to resolve the IDT issue, also refer to the table below. Depending on the items reported on the return, determine if any additional adjustment actions below apply to the IDT claim. Also proceed to the next IRM sections that apply to your case.

    Adjustment Actions IRM References
    Address Change IRM 25.23.2.3.6, When to Update the Victim’s Address, and IRM 3.13.5.40, Determining National change of Address (NCOA) Address Changes.
    Adoption Credit Form 8839, Adoption Credit, and IRM 21.6.3.4.1.25, Form 8839,Qualified Adoption Expenses.
    Affordable Care Act
    For unprocessed returns or amended returns with Form 8962, Premium Tax Credit, or Form 8965,Health Coverage Exemptions, submitted by the valid SSN owner, follow procedures in IRM 21.6.3.4.2.12, Premium Tax Credit.

    When nullifying TC 150 returns for tax year 2014, or later years, the Shared Responsibility Payment (SRP) may be posted to the MFT 35. A separate adjustment on the MFT 35 account will be required to reverse the SRP. Use of the IAT Credit Transfer tool is required when reversing any credit applied from the MFT 30 account. This is identified by a TC 796 on the MFT 35 account and TC 896 on the MFT 30 account. Follow instructions in IRM 21.6.4.4.20.3.1, Shared Responsibility Payment Adjustments.
    Combat Zone - C Freeze IRM 21.6.2.4.2.3, Valid TIN Located - Taxpayer B - Posted First
    IDTVA Specialty Functions, also see IRM 5.19.10.6.2, Combat Zone Qualified Individuals and Areas, and
    IRM 5.19.10.6.3, Combat Zone Freeze Code.
    Decedent Returns IRM 21.6.6.4.22.1, Updating the Entity on Decedent Accounts.
    Earned Income Tax Credit Recertification Indicator (EITC) - Reversals IRM 4.19.14.7(7), Recertification.
    Economic Impact Payment (EIP) IRM 25.23.4.20, Coronavirus Aid, Relief, and Economic Security Act (CARES Act) - General.
    Erroneous Refunds IRM 21.4.5.5, Erroneous Refunds Categories and Procedures.
    Excess Collections - Moving credits to or from the Excess Collection File (XSF) IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).
    First-time Homebuyer Credit (FTHBC) IRM 21.6.3.4.2.10, First-Time Homebuyer Credit.
    Fraudulent and/or Compromised POA IRM 21.3.7.5.5.3, How to Report a Compromised or Potentially Compromised CAF Number.
    Letter Procedures Job Aids Non-Tax-Related IDT (IDT4) Letters Job Aid and Tax-Related IDT Letters Job Aid
    Manual Refunds IRM 21.4.4.5, Preparation of Manual Refund Forms.
    Math Error Procedures IRM 21.5.4, General Math Error Procedures.
    IDT Case Requiring Corrections IRM 25.23.4.14, Identity Theft (IDT) Cases Processed Incorrectly.
    Moving Refunds IRM 21.5.2.4.23.10, Moving Refunds.
    Restricted Interest Accounts requiring manual restricted interest computations will be referred to the IDTVA restricted interest specialist. See IDTVA Restricted Interest Desk Guide

    Note:

    Cases that may require restricted interest calculations include disaster claims, carryback/carry forward and combat zone claims.

    TOP Offsets IRM 25.23.4.10.11.2, Identity Theft with TOP Offsets.
    Unfiled Returns IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.
    Unpostables IRM 21.5.5.4.2, Resolving Unpostables.
    The UPTIN Histories Tool on IAT can be used to research and resolve unpostables. The tool is designed to assist users with input of histories on CC UPTIN.
    Unpostables on OARs must be corrected within 3 days of identification.

    Note:

    The list above may not include all actions required to resolve your case. Research and analyze each case to ensure complete and accurate resolution.

  5. If a valid TIN is not located and the IDT return cannot be nullified, you may need to create an IRSN for the IDT (invalid) return(s).

  6. For all non-streamline case processing, the TIN-Related Problem Research Sheet is required. This research sheet is found on SERP under the IRM Supplements tab. The research sheet can also be completed using the aMend tool. Per Exhibit 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, use of the aMend tool is mandatory when working IDT cases. Include a CIS case note when a determination is made. Record all significant research actions and information. The information retained/recorded must be sufficient to support the actions taken on the case.

    Note:

    In situations where the aMend tool will not perform the necessary account adjustment, the IAT xClaim tool or REQ54 tool must be used.


    For streamline cases, include a CIS case note when a determination is made (e.g., CP 05A, DECD Taxpayer (TP), invalid/valid per IRP data etc.).

    Note:

    If you are preparing the case for reassignment to another CSR/TE or to the IDT holding number, you may notate your research in the "Notes" section of the CIS case in lieu of using the research sheets. The IDT holding number can be found on the Accounts Management Site Specialization Temporary Holding Numbers Listing. located on SERP.

  7. If the IDT claim cannot be supported based on the information received and your research, refer to IRM 25.23.2.6.6.3, Identity Theft Claims Submitted by Individuals Who Do Not Appear to be the Victim, for additional guidance.

Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing

  1. You must consider all items in the Identity Theft (IDT) case processing charts below that apply to your case scenario. Utilizing the tables will assist you in addressing all issues to make the taxpayer whole.

  2. For instructions related to research, verification, and requests, see the table below:

    If And Then
    (1) The TC 976 was not processed, Obtain the missing document.
    (2) The SSN owner’s return posted as TC 976, An election was made for the Presidential Election Campaign Fund (PECF), Prepare a dummy Form 1040-X. Refer to procedures in IRM 21.6.7.4.12, Presidential Election Campaign Fund (PECF).
    (3) The SSN owner’s return posted as TC 976/977 bypassed DIF scoring, Research for DIF scoring criteria per IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION “Send Return(s) to Examination for Review”. DO NOT refer Form 1040-EZ.

    Caution:

    All adjustment actions must be input prior to referring to Exam.

    (4) The return is a statute year, Action is required to prevent a barred assessment/statute, Refer to IRM 25.23.2.5, Statute Protection, IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, and IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, for additional guidance.

    Reminder:

    A return must be considered valid for the ASED to apply. Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period.

    (5) You discover any errors when you math verify the valid return, See IRM 25.23.4.6.5.3, Missing Information, to determine the appropriate actions to take.
    (6) The valid taxpayer may have a filing requirement for the impacted year, The valid taxpayer has not filed a return, See IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.
    (7) If the impacted year is tax year 2018 or 2019, The Economic Impact Payment (EIP) was issued, See IRM 25.23.4.20, Coronavirus Aid, Relief, and Economic Security Act (CARES Act) - General.

  3. For entity-related instructions, see the table below:

    If And Then
    (1) The TP is deceased, Update the entity information as applicable. See IRM 21.6.6.4.22.1, Updating the Entity on Decedent Accounts.
    (2) The TP’s address is incorrect and/or requires updating, Account information and case documents have been reviewed to obtain the most recent address, Ensure the address on the CN is updated on CC ENMOD. For more information, refer to IRM 25.23.2.3.6, When to Update the Victim’s Address, and IRM 3.13.5.40, Determining National Change of Address (NCOA) Address Changes. When changing an address to a Service Center address, refer to IRM 3.13.5.64, Campus Address Used Only when Taxpayer Address is Unavailable. Do Not use the Service Center’s actual street address when you are unable to locate an address for the taxpayer.
    (3) The TP’s filing status or name line is incorrect, Update the name line and/or filing status on CC ENMOD, as applicable. For the secondary spouse, if applicable, ensure the name line is updated on Masterfile for the same year or an earlier year.
    (4) The secondary spouse, Secondary spouse has filed married filing jointly, Input TC 594 CC 084 to satisfy the secondary TIN’s filing requirement for the secondary spouse on a MFJ return, as applicable. Refer to IRM 25.23.2.6.5, Closing Identity Theft with Tax Delinquency Inquiries (TDI), for additional guidance.

    Note:

    This will ensure a TDI notice is not issued to the secondary taxpayer.

    (5) The MFJ IDT return(s) include two taxpayers who are not married, Input TC 592 to reverse TC 594 CC 084 cross referencing the secondary taxpayer.

    Note:

    TC 592 will reverse all TCs 59X on the module. Input of a TC 594 CC 084 cannot be post delayed. If the valid taxpayer is the secondary on a valid MFJ return, monitor the account for one week. After one week, input TC 594 CC 084 to cross reference the correct spouse.

    (6) There is a TC 971 AC 522 with MISC WI FA ALTRD, Input TC 972 AC 522 with MISC ‘WI FA IRSADM’ after all corrective actions have been taken.

  4. For adjustment-related instructions, see the table below:

    If And Then
    (1) TP A’s (CN owner) return is received after the return due date, Refer to IRM 20.2.4.5, Unprocessible Returns, and IRM 20.2.4.5.1, Updating the RPD on Unprocessible Returns, for additional guidance.

    Note:

    This IRM will serve as official guidance for updating the RPD.

    (2) The return is for a current year, Input a TC 971 AC 850 on the account when the IDT return requested a direct deposit that was not issued. Include a Post Delay (PD) Code 2 in your adjustment.

    Note:

    Input of a TC 971 AC 850 will prevent direct deposit and result in the issuance of a paper refund check to the address shown on the taxpayer’s entity module.

    (3) The return is determined to be the result of IDT,
    • Input the adjustment including RC 139 on the account, as applicable.

    • Input the appropriate Posting Delay and Hold Codes, as applicable. For additional guidance on Posting Delay Codes, see IRM 21.5.2.4.17, Posting Delay Code (PDC), and IRM 21.5.5.4.2.1, Cycling Transactions, to determine the appropriate number of cycles to delay your actions.

    (4) Incorrect information is recorded on CC DUPED, This is a current year return, Refer to IRM 21.6.1.7.1, Command Code (CC) DUPED, to correct the data to reflect the valid taxpayer’s information, if applicable.

    Reminder:

    The incorrect taxpayer’s information should be removed from CC DUPED.

    (5) Adjusting Premium Tax Credit (PTC) or Shared Responsibility Payment (SRP), Refer to the following IRMs:
    • IRM 21.6.3.4.2.12.4, Tools for Accessing ACA-Related Taxpayer Data

    • IRM 21.6.3.4.2.12.7, Adjusting the Account, to ensure the PTC is computed correctly, if applicable.

    • IRM 21.6.4.4.20.3, Shared Responsibility Payment Overview

    • IRM 21.6.4.4.20.3.1, Shared Responsibility Payment Adjustments, to determine the taxpayer’s liability for the SRP, as applicable.

    Note:

    use the appropriate Post Delay and Hold Codes, as applicable.

    (6) Recertification indicators are on the taxpayer’s account (CCs ENMOD and IMFOLE):
    RECERT-IND - Displays the indicator used to identify what recertification is required for.
    CC ENMOD:
    • TXPD> - Identifies the tax year the ban was set.

    • EL-TXPD> - Identifies the tax year the ban will be lifted.


    CC IMFOLE:
    • RECRT TXPD> - Identifies the tax year the ban was set.

    • ELG TXPD> - Identifies the tax year the ban will be lifted.

    • Identity theft returns that were audited by Exam can result in the placement of recertification indicators that will negatively impact the valid taxpayer if left unresolved.

    • Review the account to determine if the credit disallowed was included on a return determined to be invalid.

    • If the disallowance is related to an IDT return, the recertification indicator must be reversed. This includes cases where the valid taxpayer files a return claiming the same credits for different dependents. Refer to IRM 4.19.14.7, Recertification, for additional guidance.

    • Use the appropriate Action Code below to reverse the indicator(s):
      Earned Income Tax Credit (EITC) - Input TC 971 AC 056.
      Child Tax Credit/Additional Child Tax Credit (CTC/ACTC) - Input TC 971 AC 161.

      Caution:

      If the recertification indicator on the account is related to credits disallowed on a return determined to be filed by the CN owner, do not reverse the indicator.

      Reminder:

      When there are recertification indicators present as a result of a return filed by the valid taxpayer, recertification requirements must be considered prior to inputting adjustments for tax years that fall within the covered period.

  5. For miscellaneous actions and annotations, see the table below:

    If Then
    (1) There are multiple CIS cases, Link all related cases, including cases under the spouse’s TIN. After completing all actions, close all related cases except ITAR.
    (2) More than one TC 976 return has posted to the module, Notate on CIS "DUP (DLN) (last 6 digits of the DLN xxxxx-x) becomes the original" , or similar remarks.
    (3) Working a streamline case, Input a CIS case note indicating which streamline method was used for processing. There may be some instances when multiple streamline processes apply (i.e., a case that has RIVO involvement but is also a MFJ Scheme case). Consider all actions required for all applicable methods. Refer to IRM 25.23.2.3.3, Required Case and History Notes, and IRM 21.5.1.5.1, CIS General Guidelines, for additional requirements.
    (4) Both taxpayers on the valid return are affected by IDT, Ensure all actions are taken to resolve all issues on both the Primary and Secondary TIN, as applicable.

    Note:

    If the IDT return filing status is Married Filing Joint (MFJ) or Married Filing Separate (MFS), and the spousal name on CC ENMOD is not the spouse of the Primary taxpayer, correct the filing status and name line on the Primary TIN to remove the incorrect spousal information.

    Reminder:

    When the return is filed MFJ, the closing letter must be issued in the names of both taxpayers.

    (5) A fraudulent or compromised POA is involved, Refer to IRM 21.3.7.5.5.3, How to Report a Compromised or Potentially Compromised CAF Number.

  6. For refund-related issues, see the table below:

    If Then
    (1) An erroneous refund was issued to the SSN owner, Refer to IRM 21.4.5.6.1, Account Actions for Category D Erroneous Refunds, for additional information.
    (2) An erroneous levy payment posted, Refer to IRM 25.23.10.7.2.6.5, Identity Theft and Disposition of Levy Proceeds, for additional guidance.
    (3) An FMS TOP Offset occurred, Refer to IRM 25.23.4.10.11.2, Identity Theft with TOP Offsets.
    (4) A refund is due, Allow the refund to be released systemically, unless an exception applies. See IRM 21.4.4.3(3), Why Would A Manual Refund Be Needed?, for situations that require a manual refund. When it is necessary to issue a manual refund, include Hold Code (HC) 4 in the adjustment. When the valid return meets DIF score criteria, issue the manual refund before sending the return to be DIF scored.

    Reminder:

    Adhere to the following adjustment considerations, as appropriate:

    • HC 4 is to be used for any account condition requiring the credit to be held (e.g., a missing signature on the valid return).

    • Include Priority Code (PC) 1 in the adjustment when sending the return for DIF scoring.

    • See IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional guidance on issuing a manual refund. After closing your CIS case, open a monitor control base with the Category Code MISC to monitor for the posting of TC 840, as required.

    • Additional general information can be found in IRM 21.5.2.4.19, Verifying Complete Adjustments.

    (5) There is a lost refund, Input TC 470 when the CN owner will not have a balance owed as a result of the actions taken to resolve the IDT issue. See IRM 25.25.4.7, Reversing Identity Theft Lost Refunds, for specific guidance.

  7. For balance due issues, see the table below:

    If And Then
    (1) TP A (valid return) has a balance due, The return was filed and/or balance due was paid late, Refer to the following IRMs:
    • IRM 20.1.2, Failure to File/Failure to Pay Penalties

    • IRM 20.1.3.2.2, Manual Penalty Adjustments

    • IRM 20.1.2.2.6.3, Wrong Return Posted First


    If any portion of the balance owed was paid late, the Failure to Pay penalty (FTP) can be computed systemically. If the return was filed late, manual computation of the Failure to File penalty (FTF) is required. Before assessing the FTF penalty, see the exception below.

    Exception:

    Do not assess the FTF penalty if the taxpayer filed a valid Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, and the return was filed by the extended due date. For 2015 and earlier years, a TC 460 was deleted during the normal weekly update (which can take up to 3 cycles). If the TC 150 was already posted to the account, the valid taxpayer may be incorrectly assessed a FTF penalty if they filed a balance due return. If TC 460 is not showing on IDRS, the following may be indicators an extension was filed:

    • There is a TC 670 payment with the April 15 date. Check Remittance Transaction Research (RTR) system to see if there is a Form 4868 that was filed with the payment.

    • The valid taxpayer’s return (generally the TC 976) is filed on or near October 15 (extension due date).

    • The return information was transcribed on CC TRDBV. It may show the Form 4868 was filed.

    Reminder:

    When the valid return is MFJ, the necessary research to determine if an extension was filed must be completed for both taxpayers.

    (2) A fraudulent overpayment posted to TP A’s (valid return) account, Refer to IRM 5.1.28.4.1, Assessment is Result of Identity Theft, and IRM 5.1.28.4.1.3, Returning Accounts to Installment Agreement Status.
    (3) The tax module reflects a balance owed in notice status, A CN ownership determination has not been made. Input TC 470 CC 90 to prevent balance due notices from generating while the taxpayer’s case is open.
    (4) TC 470 CC 90 was input, The valid taxpayer will have a balance owed. Input TC 472 to reverse the TC 470 CC 90.
    (5) The tax module reflects a balance owed in collection status, Refer to IRM 25.23.4.12, Collection Activity - Form 14394/13794.

  8. After completing the actions above, your case may need to be referred outside of your functional area. Refer to the chart below:

    If And Then
    (1) The TC 976/977 return bypassed Discriminant Index Function (DIF), Forward to Examination for DIF scoring. Also input a Priority Code 1 on the adjustment. Use local procedures to refer the case.

    Note:

    The return should only be sent if it meets any of the criteria in IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review" . DO NOT refer Form 1040EZ.

    Caution:

    All adjustment actions must be input prior to referring the case to Exam.

    (2) Form 8379, Injured Spouse Allocation, was attached to the case, You do not have the skill set to resolve the case, Open a new CIS case with Category Code "DMFC" . Assign the case to the IDRS number located on the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP. For the required fields, input the Doc Type as "Injured Spouse Claim" , use Program and Function Code "ADJ-710-97140," "Priority 2" and reason "Form 8379 attached" .

    Reminder:

    If your site works both IDT case work and injured spouse case work, do not reassign the case. The case should be retained and worked within your site.

  9. See the chart below to determine the final closing actions and letter requirements required for your case:

    Note:

    The CIS capture function must be used when sending a letter as part of IDT case resolution. Refer to IRM 21.5.1.5.1, CIS General Guidelines, for additional information.

    If And Then
    (1) Closing the case as IDT1/IDT8, TP identified (Form 14039 or similar statement submitted with return), Input the correct tax administration code TC 971 AC 501. See IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501, and IRM 25.23.2.6.1.1, Systemic Actions Taken After TC 971 AC 501 Placed on Account.

    Note:

    The indicator should be placed on all affected IDT tax years identified by the taxpayer.

    (2) Closing the case as IDT3/IDT8, IRS identified, Input the correct tax administration code TC 971 AC 506. See IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506.

    Note:

    The indicator should be placed on all affected IDT tax years not identified by the taxpayer.

    (3) Closing the case when TP B (invalid return not meeting nullity criteria) was assigned an IRSN, Adhere to the following:
    • Do not input a TC 971 AC 501/506 on an IRSN.

    • If you are resequencing an account, reestablish the SSN. Reinput the appropriate TC 971 AC 501/506 on the SSN.

    • If TC 971 AC 501/506 are placed on an IRSN entity, the transactions must be reversed with a TC 972 AC 501/506 using "IRSERR" as part of the MISC field. See IRM 25.23.2.6.2, Manually Reversing TC 971 AC 501, and IRM 25.23.2.6.4, Manually Reversing TC 971 AC 506, for additional information.

    (4) Closing the case as IDT1/IDT3/IDT8, The following incident numbers are present:
    • IR20150521512

    • IR20150521555

    • IR20150521556

     
    • IR20160127510

    • IR20160127513

    • IR20160614508

     
    • CR20170421067

    • LR20170421067

    • Determine if a tax administration code should be placed on the IDT victim’s account.

    • If a TC 971 AC 505 is present on the account, source "WI AM OTHER" must be used when inputting TC 971 AC 506 in addition to other required actions. Refer to IRM 25.23.2.10, Get Transcript Breach, IRM 25.23.2.11, Get an Electronic Filing PIN Incident, and IRM 25.23.2.13, Breach Numbers CR20170421067 and LR20170421067, for additional guidance.

    • If a TC 971 AC 527 is present, refer to IRM 25.23.2.8.6, Disabled Online Accounts TC 971 AC 527, IRM 25.23.2.8.6.1, Treatment of Blocked Accounts for IP PIN, and IRM 25.23.2.8.6.1.1, Resolving Tax-Related Accounts with TC 971 AC 527 WI BREACH DSABLD, for additional guidance.

    (5) Closing the case as IDT4, The following incident numbers are present:
    • IR20150521512

    • IR20150521555

    • IR20150521556

     
    • IR20160127510

    • IR20160127513

    • IR20160614508

     
    • CR20170421067

    • LR20170421067

    • Determine if a tax administration code should be placed on the IDT victim’s account.

    • If a TC 971 AC 505 is present on the account, source "WI AM OTHER" must be used when inputting TC 971 AC 506 in addition to other required actions. Refer to IRM 25.23.2.10, Get Transcript Breach, IRM 25.23.2.11, Get an Electronic Filing PIN Incident, and IRM 25.23.2.13, Breach Numbers CR20170421067 and LR20170421067, for additional guidance.

    • If a TC 971 AC 527 is present, refer to IRM 25.23.2.8.6, Disabled Online Accounts TC 971 AC 527, IRM 25.23.2.8.6.1, Treatment of Blocked Accounts for IP PIN, and IRM 25.23.2.8.6.1.2, Resolving Non-Tax-Related Accounts with TC 971 AC 527 WI BREACH DSABLD, for additional guidance.

    (6) If Form 14039 was received, The account reflects at least one rejected invalid return and no invalid returns have been accepted, See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.
    (7) All actions have been completed and closing codes input, Send the TP an IDT closing letter. Refer to Exhibit 25.23.4-10, Identity Theft (IDT) Closing Letter Decision Chart.

Complete Case Analysis

  1. To ensure all identity theft issues have been identified, complete case analysis is required on all tax related receipts into IDTVA inventory. This includes but is not limited to the following:

    • Conducting a cursory review of prior years (a minimum of three prior years) and all subsequent years for apparent evidence of unresolved IDT issues. The prior year review will continue in three-year increments until no indications of identity theft are found.

      Example:

      The SSN owner filed for the first time in 2017. A review of the account indicates returns were filed for tax years 2015 and 2016. While the taxpayer did not include the tax years 2015 and 2016 on the Form 14039, it is clear these years were not filed by the SSN owner.

      Example:

      The SSN owner claimed identity theft for tax year 2016. A review of the account indicates there is also identity theft for tax year 2013. The three-year look back rule applies again by reviewing tax years 2012, 2011 and 2010.

    • Do not assume the taxpayer filing a Form 14039 claim is the true owner of the SSN. Consider all information received, the research you conducted, and any additional information available to determine the legitimate taxpayer and resolve the case thoroughly and accurately. An external data breach return could have identical or similar information. Refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, for additional items to review to prevent the mishandling of an IDT case.

    • When completing case analysis, if there is Compliance involvement and a determination of IDT for the same year, reassign all years. Do not perform any account adjustments or issue letters requesting additional information.

    Note:

    When resolving accounts identified through completion of required research for the look back period, work active tax years only. Active tax years include tax years where IRPTR data is still available and the module is not in retention, years where IRPTR data is not available but the module is not in retention due to current account activity (i.e., balance due, etc.), and years that are impacted by income-related IDT but do not have a filed return, TDI, ASFR, or Exam SFR issue. Do not adjust modules in retention, including tax years listed on Form 14039, unless reversing a tax offset will create a balance due or it is necessary to resolve the taxpayer issue (to make the taxpayer whole). Update the activity code of the active module "RTTN###" when requesting a module from retention.

  2. Include a CIS case note indicating Complete Case Analysis (CCA) was performed and the results of that research.

    Example:

    Invalid/Valid per IRPTR Data, lost refund. CCA completed - No additional impacted years.

  3. Any tax year identified through the Complete Case Analysis process, that is not identified by the taxpayer through correspondence or a phone call, will be marked with a TC 971 AC 506 (for modules impacted by tax-related IDT) or with a TC 971 AC 504 (for modules impacted by non-tax-related IDT) at closing. Creation of CIS cases for impacted years discovered through CCA will use the date of identification as the IRS received date. The IRS received date on a Form 14039, Police Report, or other correspondence reporting an identity theft issue will only be used for impacted tax years listed by the taxpayer.

    Exception:

    If the information is requested from the taxpayer to confirm the IDT determination for the years discovered through Complete Case Analysis, close the case with a TC 971 AC 501. See IRM 25.23.2.6.1(1)a, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501.

    Example:

    Form 14039 is filed to report the taxpayer was unable to file their TY 2019 return, because a return is already on file. The taxpayer explains that they began working in 2019 and this is their first time filing. Completion of CCA results in the discovery of returns meeting nullity criteria filed for TY 2017 and 2018. Further research results in the identification of income earned under the taxpayer’s SSN for TY 2014-2016. The taxpayer was not of age to work during those years. There are no returns on file or Compliance issues for TY 2014-2016. TY 2019 will be closed with TC 971 AC 501, because the taxpayer was determined to be a victim of identity theft and listed this year on Form 14039. TY 2017 and 2018 will be closed with TC 971 AC 506, because the taxpayer was determined to be a victim of identity theft impacting tax administration, and these tax years were identified through CCA. TY 2014-2016 will be closed with TC 971 AC 504, because the taxpayer was determined to be a victim of income related identity theft that does not impact tax administration.

    Example:

    A Police Report is received indicating the taxpayer is a victim of identity theft for TY 2017. TY 2018 is the first year they filed a return. Completion of CCA results in the discovery of invalid returns filed for TY 2015, 2016, and 2017. The IRS received date for CIS cases created for TY 2015 and 2016 will be the date CCA was completed, because that is the date additional impacted years were identified.

Documentation Requests, Return Processing and Missing Information

  1. Before you can proceed with resolving a case, there may be instances when you will need to take the following actions:

    • Submit unprocessed returns to SP for processing

      Note:

      Refer to guidance under IRM 25.23.4.11.1, Identity Theft (IDT) Expedite Operations Assistance Requests (OARs) - (Cases that Meet Economic Burden Criteria 1-4 and Contain Unprocessed Original Returns; TC 976 Documents) - Austin IDTVA-A ONLY, if cases meet TAS economic burden criteria 1-4.

    • Order returns only when it is necessary for case resolution

    • Request missing schedules/forms and/or signatures from the TP


    Refer to the following IRM sections for additional guidance:
    • IRM 25.23.4.6.5.1, Ordering Documents

    • IRM 25.23.4.6.5.2, Unprocessed Documents

    • IRM 25.23.4.6.5.3, Missing Information

Ordering Documents
  1. Requesting documents from files may result in significant delays in case resolution. To prevent unnecessary delays, verify the document you are requesting is needed to make a determination and/or correct the account. Complete all required account research prior to ordering the document. You may find the information available in CIS images, AMS history items, and IDRS Command Codes (TRDBV, IRPTR, IMFOLR, NAMES, etc.) is sufficient to make a CN ownership determination, verify nullity criteria is met, or determine the case is a MXEN or IJE issue.

  2. If the return and/or other documentation is not attached to your case and is not available in another CIS case, order the document only if it is necessary to resolve the case. The CSR/TE resolving the IDT case will order the document. A document may be necessary, if any of the following conditions are met, unless an exception applies:

    • No information exists on CC TRDBV for the duplicate return and/or schedules filed

    • No income information is available on CC IRPTR

    • The case requires routing to Automated Under Reporter (AUR) or Exam

    • The case is a true "MXEN" case

      Exception:

      Returns meeting No Move criteria or account move conditions requiring use of Form 12810, Account Transfer Request Checklist, do not need to be ordered to resolve the account. Refer to IRM 25.23.4.9.1.2, Tax Year Account Move Conditions - Applicable for IDT(X) and IDS(X) Cases, for additional information.

    • The case is a Default True Scrambled SSN Case

    • A non-streamline case

      Exception:

      Returns meeting No Move criteria or account move conditions requiring use of Form 12810, Account Transfer Request Checklist, do not need to be ordered to resolve the account. Refer to IRM 25.23.4.9.1.2, Tax Year Account Move Conditions - Applicable for IDT(X) and IDS(X) Cases, for additional information.

    • A CP 36I was generated, but the Form 14039 was not scanned to the CIS case

      Exception:

      Some CP 36I cases may not have the documents scanned to the case by the time you are ready to work your case. If you have a CP 36I case that is less than 30 days old, hold the case in your inventory to allow adequate time for the return to appear on CIS, unless your research determines the return and any additional information/documentation are not necessary. Also leave a case note on CIS/AMS "Awaiting CP 36I scanned docs" , or similar remarks.
      The decision to order the documents should be made on a case by case basis depending on other research and analysis conducted that assists you in making a correct CN determination. Having the return and Form 14039 available may provide additional information pertinent to your case.

      Caution:

      Because an external data breach return could have identical or similar information, you may need to order missing documents to determine if the TP has indicated they were the victim of a breach. This information may have been included on the Form 14039. Also refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview and IRM 25.23.4.8.1.5, Identity Theft (IDT) with External Business/Preparer Data Breach Involvement.

    • The Form W-2, Wage and Tax Statement, is missing and wages and withholding needs to be verified per paragraph (11) of IRM 21.6.3.4.2.2, Withholding (W/H) Tax Credit

    • The return is missing schedules and/or required forms

    • The return is filed under an ITIN and reports wages

    • The taxpayer is deceased and you need Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or court documents to issue a refund

    • You suspect that the return is for another taxpayer with a valid SSN, but cannot locate the other SSN on NAMEI/NAMES

    • You suspect that the return is for another tax year based on your research, but cannot validate this without the return

      Note:

      CSRs performing the resolving actions on a case should determine if additional information (which includes the Form 14039) is needed to make a determination of CN ownership. If enough information has been received or is available through internal research, work to resolve the case to completion. Requesting unnecessary information will delay the processing of the case.

      Exception:

      If the case meets CAT A or Discriminant Index Function (DIF) scoring criteria, per IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review", the return must be ordered.

      Caution:

      When a refund is due, do not order the return only to verify the signature. If the information has been transcribed on TRDBV, the signature should have been validated during processing. Assume the return had a valid signature and continue processing. In addition, do not order the return if the entity information is not present on TRDBV. If it was not transcribed, the address and name matched the information on MF. If you determine through additional research the signature is needed for other purposes and/or the entity information is incorrect, order the return.

      Note:

      This list is not all inclusive


    If the return is required and is not already attached to the case, utilize CC ESTAB using "DQ" as the definer. In the remarks section of the ESTAB request, annotate the following: "AM-ID Theft" and Scan to open CISXXXXXX case. These annotations will notify Files to pull the returns as priority and to send the request to the Image Control Team (ICT) team to scan. This should reduce multiple CIS cases. For additional guidance on requesting returns, see IRM 21.6.7.4.4.1(5), TRNS36 - Control.

    Caution:

    If reprocessing a return and research indicates prior filing by the spouse, see IRM 21.6.7.4.5, Multiple Uses of Taxpayer Identification Numbers - TRNS36F (DUPTIN Filing Condition), for additional information.

Unprocessed Documents
  1. While working IDT cases, you may identify unprocessed returns that must be addressed. For purposes of IDT resolution, a return posted with a TC 977 that has been scanned as a CIS image will be considered unprocessed. IDTVA screeners will receive unprocessed returns from Submission Processing (SP) and/or Statutes that have indications of IDT (i.e., Form 14039, similar statements or “Identity Theft” is notated on the return, etc.). See IRM 25.23.4.6.5.2.1, Unprocessed Statute Returns or Transcripts (IDTVA Screeners Only), for specific procedures. For Compliance IDT cases, an original return with no TC 976/977 posted may be received from the referring Compliance Function.

  2. Research to determine if the return has been processed. See the chart below for additional guidance.

    If And Then
    (1) There is a TC 976 present on the account, The TC 976 is for the return in the case, The return does not need to be sent to SP for processing.
    (2) There is a TC 976 present on the account, The TC 976 is not for the return in the case,
    • Search CIS for the return associated with the posted TC 976, and link any related cases.

    • For any return that does not have a posted TC 976, follow the procedures throughout the remainder of this IRM, beginning with paragraph (3).

    (3) There is no TC 976 present on the account, The return is present on CIS or is an original return from a referring Compliance Function,
    • Follow the procedures throughout the remainder of this IRM, beginning with paragraph (3).

  3. Priority treatment must be given to Operations Assistance Requests (OARs) and statute imminent circumstances. Screen all statute year returns to determine if the ASED is expiring or imminent. See the chart below for additional guidance.

    Note:

    A CN ownership determination must be made before statute protection procedures can be followed.

    If Then
    (1) The current account ASED and the valid return ASED are both greater than 180 days,
    • The account does not require statute protection actions.

    (2) The current account ASED and the valid return ASED are both 180 days or less,
    • Do not abate tax.

    • Input TC 560 before you send the case to SP for processing.

      Note:

      The ASED must post before sending to SP.

    • Refer to IRM 25.23.2.5,Statute Protection, for quick assessment procedures.

      Reminder:

      Reference IRM 3.12.179.73.3, UPC 178 Reason Code 2 Assessment Statute Expiration Date (ASED), to prevent an unpostable 178-2.

    (3)The ASED for a valid return is expired,
    • Do not abate tax.

    • See IRM 25.23.4.9.2.1, Addressing Cases with Barred Assessments, to determine if there is a barred assessment and identify the applicable initial case actions required to correct the account.

    (4)The ASED for an invalid return that will be moved to an IRSN is 180 days or less but has not expired,
    • Do not abate tax.

    • Research to determine if an IRSN was previously assigned to the taxpayer.

    • Assign a new IRSN if one was not located through research.

    • For Compliance IDT cases, contact the DITA team lead to request assignment of a new IRSN if one was not located through research

    • Refer to IRM 25.23.2.5, Statute Protection, to complete a quick assessment on the IRSN account.

  4. A return will be considered signed if the correspondence includes any form that contains a signed Jurat (e.g., Form 14039, Letter 3219C).

    Reminder:

    Both taxpayers’ signature must be present on jointly filed returns. See IRM 21.5.3.4.4.1, Special Handling of Signature Requests, for exceptions.

  5. Unprocessed returns deemed a nullity must never be sent to SP for processing as a TC 976. Follow procedures in IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, to make a nullity determination.

    If And Then
    (1) The TC 150 return has been determined to be a nullity through the Refund Scheme Listing, IRP Data or Schedule C Case Processing, or through verification of an RIVO determination, The unprocessed return has been validated as filed by the CN owner,
    • Edit the unprocessed return per paragraph (9) below.

    Note:

    If there is an open CIS case related to the unprocessed return, leave a CIS case note documenting all actions taken.

    (2) There is no TC 150 posted, The unprocessed return has been validated as filed by the CN owner,
    • Edit the unprocessed return per paragraph (9) below. Do not post TC 976.

    Note:

    If there is an open CIS case related to the unprocessed return, leave a CIS case note documenting all actions taken.

    (3) If the unprocessed return has been deemed invalid but does not meet nullity criteria, The TC 150 return has been validated as filed by the CN owner,
    • For Compliance IDT cases, see paragraph (6) below.

    • For all other cases, edit the unprocessed return per paragraph (9) below.

    Note:

    If there is an open CIS case related to the unprocessed return, leave a CIS case note documenting all actions taken.

    (4) If the unprocessed return has been deemed invalid but does not meet nullity criteria, There is no TC 150 posted,
    • For Compliance IDT cases, see paragraph (6) below.

    • For all other cases, follow the procedures detailed below:

    • Research to determine if an IRSN was previously assigned to the taxpayer.

    • Assign a new IRSN if one was not located through research

    • Edit the unprocessed return per paragraph (9) below. Do not post TC 976. Replace the TIN on the return with the IRSN assigned to that taxpayer

    Note:

    If there is an open CIS case related to the unprocessed return, leave a CIS case note documenting all actions taken.

  6. For Compliance IDT cases that are not currently assigned to DITA but require an IRSN, do not route the return to SP. Follow procedures in IRM 25.23.10.5, Post Function Referral Procedures, to refer the case to DITA.

  7. Valid returns not processed as an original return have bypassed DIF scoring. Valid returns must be screened for DIF score criteria after the TC 976 has posted to the account. See IRM 25.23.4.6.3(2), Input, Annotations and Action Requirements for Streamline/Non-streamline Case Processing, If/Then scenario (3) for additional information.

  8. Prior to forwarding the return for processing, review the chart below. Take the appropriate action for each scenario the return to be processed matches.

    If And Then
    (1) IDRS CC TXMOD reflects a Master File (MF) status of 02 or 03,
    • Refer to IRM 25.23.2.6.5, Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI),

    • Note the appropriate TC 59X code in the left margin of the return.

    (2) IDRS CC TXMOD reflects an unreversed TC 971 AC 121/124/129, Input TC 972 AC 121/124/129 to reverse it.
    (3) The return being processed is Married Filing Jointly (MFJ), The current filing status is not MFJ,
    • Input TC 594 CC 084 on the secondary TIN to prevent separate TDI activity. Cross reference the primary TIN.

    (4) The return being processed is Married Filing Jointly (MFJ), The current filing status is MFJ with someone other than the spouse on the return,
    • Input TC 592 to reverse the TC 594 CC 084 for the invalid return previously processed.

    • Input TC 594 CC 084 on the secondary TIN to prevent separate TDI activity. Cross reference the primary TIN.

      Reminder:

      TC 592 will reverse all TCs 59X on the module. Input of a TC 594 CC 084 cannot be post delayed. If the valid taxpayer is the secondary on a valid MFJ return, monitor the account for one week. After one week, input TC 594 CC 084 to cross reference the correct spouse.

    (5) There is a name line change from any filing status to MFJ,
    • Update ENMOD prior to sending the return to SP for processing to prevent UPC 166. See IRM 3.12.179.62, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch, for additional information.

    (6) There is a name line change from MFJ to any other filing status, The module does not include Self-Employment income for the secondary taxpayer,
    • Update ENMOD prior to sending the return to SP for processing to prevent UPC 166. See IRM 3.12.179.62, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch, for additional information.

    (7) There is a name line change from MFJ to any other filing status, The module does include Self-Employment income for the secondary taxpayer,
    • Address the invalid return.

    • If the invalid return meets nullity criteria, input a full back out of the return figures, unless that action will cause a barred statute.

    • If the return does not meet nullity criteria, follow procedures in, IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, and move the return to an IRSN. For Compliance IDT cases, see paragraph (6) above.

    • Update ENMOD to remove the secondary taxpayer information after the actions taken to nullify or remove the invalid return from the account have posted.

    • The remaining actions to adjust the account to the valid return figures will be taken after the TC 976 has posted.

    (8) The return is part of a Compliance IDT case, The case is being worked by a function that addresses unreported income,
    • Verify all income belonging to the taxpayer(s) is included on the return to be processed.

    • Follow your functional IRM for specific guidelines to address incomplete returns, if necessary.

  9. Valid unprocessed returns must be edited prior to sending for processing:

    • To prevent the valid return from unposting, edit the return with SPC ‘B’ in the right margin between the secondary TIN and the Presidential Election Campaign Fund (PECF) designation per the instructions in Exhibit 3.12.2-4, Special Processing Codes. This allows the return to bypass UPC 126 and all UPC 147 Reason Codes, except RC 4.

    • Notate ‘ITVA’ in the upper left-hand corner. Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, for additional guidance that may be applicable.

    • All edits must be made in ‘Red’ pen/pencil only. It is also acceptable to notate all edits on CIS images using the annotation tools then underline the changes in ‘Red’.

  10. Send unprocessed valid returns to Submission Processing. Monitor the account for the posting of TC 976. Use the table below to determine the appropriate Submission Processing Site:

    If Then
    For campuses with Submission Processing (SP),
    • Route the return to your local SP using a Form 1725 or similar local routing slip.

    • Include, “Post TC 976 - Do not send to ICT to be imaged”, or similar instructions in the remarks field.

      Exception:

      If a paper return is received in response to a Letter 5064C, only input, “Post TC 976”, as the remarks.

      Exception:

      Unprocessed Forms 1040-NR, 1040-SS, and 1040-PR will be sent to Austin Service Center.

    • If 40 days have passed, and the TC 976 has not posted, see IRM 25.23.4.6.5.2.2, Unprocessed Returns - 40 Day Suspense Time Frame Expired.

    For campuses without Submission Processing (SP),
    • Using a Form 3210, route the return to Kansas City SP at:
      Internal Revenue Service
      Stop 6052
      333 W Pershing Road
      Kansas City, MO 64108

    • Include, “Post TC 976 - Do not send to ICT to be imaged”, or similar instructions in the remarks field.

      Exception:

      If a paper return is received in response to a Letter 5064C, only input, “Post TC 976”, as the remarks.

      Exception:

      Unprocessed Forms 1040-NR, 1040-SS, and 1040-PR will be sent to Austin Service Center.

    • If 40 days have passed, and the TC 976 has not posted, see IRM 25.23.4.6.5.2.2, Unprocessed Returns - 40 Day Suspense Time Frame Expired.

  11. Ensure the account reflects the appropriate IDT indicator(s) (i.e., TC 971 AC 522).

  12. If it is determined the IDT issue was previously resolved, follow the chart below.

    If Then
    (1) A TC 150 is present and the ASED is greater than 90 days,
    • Send the return to ICT as an XRET using Form 13503. Refer to the Form 13503 ICT XRET Cover Sheet Sample located on the IDTVA Hub.

    (2) A TC 150 is present and the ASED is less than 90 days,
    • Create a CIS case.

    • Send the return for exception scanning.

    • Input a TC 971 AC 010 to generate TC 977.

    • Once scanned to the case, work following applicable procedures per IRM 21.5.3.4, General Claims Procedures.

    (3). No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted,
    • Follow the procedures beginning at paragraph (2) above.

Unprocessed Statute Returns or Transcripts (IDTVA Screeners Only)
  1. IDTVA screeners receive unprocessed returns from Submission Processing (SP) and/or statutes that have indications of IDT (i.e., Form 14039, similar statements, "identity theft" is notated on the return, etc.). It is the responsibility of the IDTVA screeners to quickly determine if IDT has occurred, if the unprocessed return is "valid" or "invalid" , and the applicable actions to take.

  2. When the Form 14039 included with a tax return does not indicate the taxpayer’s information was used to file taxes, consider the claim as reporting non tax-related IDT, and take the following actions:

    • Detach Form 14039.

    • Notate in the left-hand margin of the Form 1040/A/EZ/SR what is being detached.

    • Notate on the Form 14039 the current date and what is being detached.

    • Route Form 14039 to ICT as an IDT4 using the IDTVA-A ICT Batch Sheet located on the IDT Hub.

    • Continue screening the tax return.

      Example:

      Form 14039 is included with the taxpayer’s 2018 return filed on Form 1040. Section A Option 1, indicating the form is being submitted for the taxpayer, and Section B Option 2, indicating the taxpayer does not know if their information has been used for tax purposes, are both marked. The taxpayer provides an explanation indicating their Social Security Card and ID were in their wallet when it was lost. Detach Form 14039 from the return. Notate on the Form 1040 "detached Form 14039 sent to ICT" . Notate on Form 14039 the current date and "detached from Form 1040 TY 2018" .

  3. Research the account and unprocessed return to determine if any of the returns may be considered a nullity.

    Note:

    The screening process should be completed even if it appears the return was previously screened (SPC "B" and "ITVA" are present on the unprocessed return).

  4. When the return being screened has a stamped Document Locator Number (DLN), refer to the table below to determine where the return originated and the appropriate actions to take:

    If And Then
    (1) The DLN matches the return posted to MF, There is an open IDT(X) CIS case or assigned RIVO/NCAT control (not a generic number), Send the return to files per IRM 21.5.1.4.9, Re-Charging and Re-Filing Documents, or follow IRM 21.5.1.4.10, Classified Waste, as applicable.

    Note:

    Determine why the return was sent to process (i.e., AMS, CIS, history, etc) prior to taking any actions.

    (2) The DLN matches the return posted to MF, There is no open IDT(X) CIS case or assigned RIVO/NCAT control (not a generic number), If TC 976 posted within 2 cycles of the current date or is in PN status, a CIS case should be systemically generated within 2 weeks of the TC 976 posting date. Hold the return until the CIS case is generated. Take the following actions to monitor for the case creation:
    • Open a MISC control base to your IDRS number using category "MISC" , activity "WT4CISDATE" (DATE = purge date), status "B" , and the current date.

    • Once the case is created, update your control base activity to "CISPOSTED" and close the "MISC" base.

    If it has been more than 2 cycles since the TC 976 posted, follow procedures in paragraph (11).
    (3) The DLN matches a return NOT posted to MF (i.e., Voided/Deleted or Identity Theft found on TRDBV), Regardless of whether or not there is an open IDT(X) CIS case or assigned RIVO/NCAT control (not a generic number), Continue the screening process. See paragraph (5).

  5. If during the screening process it is determined tax-related IDT did not occur, perform the following actions:

    • Circle out any incorrect edits (SPC "B" and "ITVA" ).

      Exception:

      If any TC 971 AC 501/506 is present on CC ENMOD/IMFOLE that is not being reversed, edit the return per paragraph (7).

    • Reverse any incorrect IDT indicators (i.e., TC 971 AC 501/506/522).

    • Forward the return to SP, ICT or your local statute unit, as applicable.

  6. Use IRM 25.23.4.8.1.3, Identity Theft (IDT) with IRP Data, Refund Scheme or Schedule C Involvement, and IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO Involvement, paragraph (4) along with the chart below:

    If And Then
    (1) The TC 150 return has been determined to be a nullity utilizing the Refund Scheme Listing. The unprocessed return has been validated as filed by the CN owner utilizing IRP data for the year of the screened return. Edit the unprocessed return per paragraph (8) below and continue to paragraph (9).
    (2) RIVO has determined the TC 150 return to be a nullity and does not match IRP data, accept the RIVO determination. The unprocessed return has been validated as filed by the CN owner utilizing IRP data for the year of the screened return. Edit the unprocessed return per paragraph (8) below and continue to paragraph (9).
    (3) The TC 150 return has been determined to be a nullity utilizing IRP data or Schedule C Case Processing. The unprocessed return has been validated as filed by the CN owner utilizing (3) years of IRP data or Schedule C Case Processing. Edit the unprocessed return per paragraph (8) below and continue to paragraph (9).
    (4) Extended research is needed to make a determination of invalid and/or valid return
    (i.e., less than 3 years IRP data, more than one TC 976/977, TC 610 payment, MFT 32 issues, transcript non-streamline procedures or meets criteria in IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, etc.).
    The current account ASED has not expired
    and is not within 180 days.
    Edit the unprocessed return per paragraph (8) and send the return to SP for processing.
    (5) Extended research is needed to make a determination of invalid and/or valid return
    (i.e., less than 3 years IRP data, more than one TC 976/977, TC 610 payment, MFT 32 issues, transcript non-streamline procedures or meets criteria in IRM 25.6.1.13, Barred Assessments/Barred Statute Cases, etc.).
    Current account ASED has expired or within 180 days. Refer to paragraph (9).
    (6) The unprocessed return meets nullity criteria. Send the return to ICT as an IDT 3 using the IDTVA-A ICT Batch Sheet located on the IDT Hub.

    Note:

    If there is an open CIS case related to the return you are screening, input a case note indicating the action being taken (i.e., valid return sent to SP to post TC 976, ASED updated and return being held by IDTVA screener until TC 976 posts, etc.).

  7. If it is determined the IDT issue was previously resolved, follow the chart below.

    If And Then
    (1) A TC 150 is present. The ASED is greater than 90 days. Send the return to ICT as a XRET using Form 13503.
    Refer to the Form 15303 ICT XRET Cover Sheet Sample located on the IDTVA Hub.
    (2) A TC 150 is present. The ASED is 90 days or less. Set the return aside to create a CIS case. Take the following actions, once the case has been created:
    • Send return for exception scanning.

    • Input a TC 971 AC 010 to generate TC 977.

    • Once scanned to case, work following applicable procedures, per IRM 21.5.3.4, General Claims Procedures.

    (3) No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted, or moved to MFT 32). The ASED is greater than 90 days. Edit the return per paragraph (5) and forward to SP or your local statute as applicable.
    (4) No TC 150 is present (i.e., IDT was on secondary TIN, IDT return was Voided/Deleted, or moved to MFT 32). The ASED is 90 days or less. Set the return aside to create a CIS case. Take the following actions, once the case has been created:
    • Send return for exception scanning.

    • Input a TC 971 AC 010 to generate TC 977.

    • Once scanned to case, route to local statute through CIS for quick assessment.

    • Additional adjustments may need to be made after the quick assessment posts (AGI, TXI, exemptions, etc.).

  8. An unprocessed return from the TIN owner must be edited before it is sent to SP for processing. Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, and IRM 21.5.1.5.5, Processing/Reprocessing CIS Tax Returns, for additional guidance that may be applicable when sending a return for processing. Perform the following actions:

    • Notate "ITVA" in the upper left-hand corner of the return.

    • Edit the return SPC "B" (in the right-hand margin between the secondary TIN and PECF designation). This will allow the return to bypass all the UPC 147 Reason Codes except RC 4. See IRM 3.11.3.3.7.5, Special Processing Code (SPC).

    • If there is a name line change, update ENMOD prior to sending the return to SP for processing (e.g., single to joint).This will allow the return to bypass the UPC 166. See IRM 3.12.179.62, UPC 166 Reason Code 0 Filing Status Code (FSC) Mismatch.

    • When the unprocessed return is Married Filing Jointly (MFJ), input TC 594 CC 084 to satisfy the secondary TIN's filing requirement, if one is not present. Make sure there is a name line for the secondary TP’s TIN on the Master File (MF) for the same tax year or earlier. If not, update ENMOD with a name line for the secondary TP’s TIN for the same year.

    • If CC TXMODA reflects a MF status of "02" or "03" , see IRM 25.23.2.6.5, Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI), for additional information.

  9. To ensure the unprocessed return will post as a TC 976, consideration of the current and "valid return" ASED must be made prior to sending the return to SP for processing.

    If Then
    (1) Current account ASED is greater than 180 days, Edit the return per (8). Then send the unprocessed return to SP or your local statute, as applicable.
    (2) Current account ASED is within 90 days or has expired and the valid return ASED will be greater than 180 days.

    Caution:

    Ensure the correct received date is being used prior to updating the ASED. Research CC TRDBV for a previously Voided/Deleted or Identity Theft return that matches the "valid return" , and/or CC TXMOD/IMFOL for a TC 610 payment.

    Note:

    Interest penalty date in TRDBV, access code IA, is equal to the received date of the return.

    • Input a TC 560 on the account to update the ASED to 3 years from the received date of the valid return.

      Caution:

      To prevent an unpostable (UPC 178-2), see IRM 3.12.179.73.3, UPC 178 Reason Code 2 Assessment Expiration Date (ASED).

    • Input TC 971 AC 522 following IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, as applicable.

    • Open a MISC control base to your IDRS number using Category Code "MISC," activity "PNASEDDATE" (DATE = purge date), status "B" and current date.

    • Hold the return until the ASED has posted (2-3 weeks).

    • Once the ASED has posted, complete "valid return" edits, as applicable, "MISC" update the activity to "SNT2PROCES" and close the MISC base.

    • Send the return to designated SP area for processing.

    Note:

    Per IRM 3.11.3.85.2, Statutory Protection Cases. A statute clearance stamp is not required when SPC “B” is present.

    (3) Valid return ASED will be within 180 days of expiration.

    Note:

    180-day time frame allows for the ASED and TC 976 to post.

    Set aside to create a CIS case. Take the following actions, once the case has been created.
    • If the ASED is within 90 days, prepare and submit Form 2859, for a quick assessment following IRM 25.23.2.5, Statute Protection, as applicable.

    • If the ASED is within 91-180 days, continue remaining actions.

    • Input a TC 560 on the account to update the ASED to 3 years from the received date of the "valid return" and suspend until posted.

      Caution:

      To prevent an unpostable (UPC 178-2), see IRM 3.12.179.73.3, UPC 178 Reason Code 2 Assessment Expiration Date (ASED).

    • Complete "valid return" edits, per paragraph (7).

    • Input TC 971 AC 522, per paragraph (9).

    • Send the return to designated SP area for processing.

    • Once the TC 976 has posted, refer to IRM 25.23.4, IDTVA Paper Process, for guidance on adjusting the account.

  10. Input TC 971 AC 522 following IRM 25.23.2.4.4, Initial Allegation or Suspicion of Tax-Related Identity Theft - IMF Identity Theft Indicators, as applicable. This includes other years of unresolved IDT that may be found during the screening process, or have been identified by the taxpayer (via Form 14039 or similar statement).

  11. When a quick determination cannot be made whether the unprocessed return and/or the TC 150 is "valid and/or invalid" , additional research is needed. Proceed with the following:

    • Set the return aside until all paper inventory screening has been completed.

    • Once a determination has been made, send the unprocessed return to SP, ICT, Statute, or

    • Create a CIS case to yourself with the appropriate category and program code, per Exhibit 25.23.4-9, IDTVA-A Identity Theft (IDT) Work Types Listing and Exhibit 25.23.4-12, Tax-Related Identity Theft (IDT) Codes.

    • Work the case using applicable procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview.

Unprocessed Returns - 40 Day Suspense Time Frame Expired
  1. If an unprocessed return is sent to SP and the TC 976 has not posted after the forty (40) day suspense time frame has expired, use the following table to determine how to continue processing the case.

    Caution:

    The instructions in this table are only for the handling of a taxpayer’s return as submitted. You must still review the account to determine if the submitted return resolves any outstanding Compliance issues.

    If Then
    (1) TXMOD Reflects a rejected (RJ) TC 150 with an ERS status code, ERS has corresponded with the taxpayer to obtain required information/documentation. Monitor the account until the rejected TC 150 has converted into a TC 976.
    (2) The ASED for the new valid return was not updated, as required, Update the ASED to the correct date based on the earliest IRS Received Date. After the new ASED has posted resubmit the valid return to SP.
    (3) Unpostable Code 126-0, See IRM 25.23.4.10.8, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement Resolution Tables, for additional instructions.
    (4). The TC 976 unposted (other than UPC 126-0,
    • Suspend the case for an additional 40 days to allow the Unpostables unit time to resolve the unpostable.

    • If the additional 40-day suspense time frame elapses and the TC 976 still has not posted, take the necessary actions, to correct the account using the applicable procedures, outlined in IRM 25.23.4, IDTVA Paper Process.

    (5) There is no indication that a TC 976 will be input (such as a pending transaction, an unpostable, etc.),
    • Re-send the return to SP and suspend the case for additional 40 days. If the additional 40-day suspense time frame elapses and the TC 976 still has not posted, take the necessary actions to correct the account using the applicable procedures outlined in IRM 25.23.4, IDTVA Paper Process.

Missing Information
  1. If you have made a Common Number (CN) ownership determination and the valid taxpayer’s return is missing information (e.g., signatures, schedules, forms) needed to adjust the account to the return figures, determine if correspondence was previously sent for missing information through account research (e.g., CIS notes, AMS history, etc.).

  2. If correspondence was not previously sent to request the missing information, send a Letter 5064C to the taxpayer. Include requested forms and schedules as enclosures for the letter you issue. Suspend the case for 40 days.

    Note:

    If the return is missing the necessary taxpayer signature(s), include paragraph "U" .

  3. Use the table below to determine what action to take. If the taxpayer provides the missing information., see If/And/Then Scenario (1). If a previous request was issued or you sent a Letter 5064C to request missing information, and the taxpayer has not provided it, provided incorrect information, or the 40 day suspense time frame has passed, see If/And/Then Scenario (2)-(4).

    Caution:

    The instructions in this table are only for the handling of a taxpayer’s return as submitted. You must still review the account determine if the submitted return resolves any outstanding Compliance issues.

    If And Then
    (1) The taxpayer provides missing information,
    • Resolve the account based on the determination made using the applicable procedures outlined in IRM 25.23.4, IDTVA Paper Process, and the appropriate functional IRM for Compliance IDT cases.

    (2) The taxpayer does not provide appropriate missing information and/or the 40-day suspense time frame has expired, The submitted incomplete return contains a tax increase or credit decrease,
    • Follow the instructions in IRM 21.5.3.4.1,Tax Increase or Credit Decrease Processing.

    • Input a TC 560 to update the ASED to 3 years from the IRS Received Date of the taxpayer’s original return.

    (3) The taxpayer does not provide appropriate missing information and/or the 40 day suspense time frame has expired, The submitted incomplete return contains a tax increase and credit increase,
    • Follow the instructions in IRM 21.5.3.4.1.1,Tax Increase and Credit Increase Processing.

    • Input a TC 560 to update the ASED to 3 years from the IRS Received Date of the taxpayer’s original return.

    (4) The taxpayer does not provide the appropriate information, and/or the 40 day suspense time frame has expired, There is a tax decrease or a credit increase,
    • Compute the adjustment for the income, and input any applicable tax increase. Do not allow unsupported deductions/credits shown on the return. Follow math error procedures as outlined IRM 21.5.4.4,Math Error Procedures Research.

    Note:

    See IRM 21.5.3.4.3,Tax Decrease and Statute Consideration, for tax decrease or credit increases on statute year claims.

    • Input a TC 560 to update the ASED to 3 years from the IRS Received Date on the taxpayer’s original return.

    • Correspond with the taxpayer to explain the difference in the adjustment.

    Note:

    Input a TC 560 with DLN-CD of 70 or 99 to prevent Unpostable Code 178-2. Use DLN-CD 70 when correcting the ASED to a later date than the posted ASED. Use DLN-CD 99 when correcting the ASED to an earlier date than the posted ASED.

    Caution:

    If the valid taxpayer has filed two returns, and the second return is intended to be superseding, the ASED will be calculated using the received date of the first return. The account will be adjusted to the correct figures on the second return, as allowable.

Credit Transcripts - IDT6/IDS6

  1. Credit Transcripts generate under the following circumstances:

    • A credit remains on the module after the RSED has expired.

    • A credit is held due to RIVO involvement.

  2. Credit transcripts are referred to IDTVA as IDT6/IDS6 cases. These cases may include a TC 976 return that has not been addressed (-A Freeze).

  3. IDTVA screeners determine if the referral is appropriate. Any referral that was received in error will be returned to the originating employee/function.

Credit Transcripts - IDT6/IDS6 (IDTVA Screeners Only)
  1. Use the following table to identify the type of transcript received:

    Transcript Type Identifying Factors
    (1) Unresolved Credit (IDTVA-A)
    • The case was closed on IDRS with Category Code IDT1, IDS1, IDT3, IDS3, IDT4, IDT5, IDT6, IDS6, IDT8, IDS8, IDT9, IDS9, or ITAR, but all actions were not taken to fully resolve the account.

    • IDTX is not valid for Accounts Management, but is still used by other functions. IDT cases resolved under the Category Code IDTX will be received when all actions were not taken to fully resolve the account.

      Note:

      If you cannot identify the original Category Code with which the case was closed, review CC IMFOLA to locate the identity theft adjustment. The first 5 digits of the employee’s IDRS number can be used to determine if the referral was appropriate. Use the IDRS - Unit and USR Database found on SERP Who/Where to determine if the adjustment was input by an IDTVA employee.

    (2) Unresolved Credit (Specialty Functions)
    • The case was closed on IDRS with Category Code IDI1, IDI2, IDI3, IDI4, IDI5, IDI6, IDI9, or IDII, but all actions were not taken to fully resolve the account.

      Note:

      If you cannot identify the original Category Code with which the case was closed, review CC IMFOLA to locate the identity theft adjustment. The first 5 digits of the employee’s IDRS number can be used to determine if the referral was appropriate. Use the IDRS - Unit and USR Database found on SERP Who/Where to determine if the adjustment was input by an IDTVA employee.

    (3) RIVO Involvement
    • AM01 (-R Freeze)

    • AM17 (P- Freeze)

    • TC 971 with AC 052, AC 121, AC 122, AC 123, AC 124, AC 129, AC 134, AC 140, AC 199, AC 617

    • A Computer Condition Code (CCC) "1"

    • A CCC "3" and another RIVO marker

    • A CC NOREF history with an IDRS control base (open or closed) containing an IDRS assignment number 148XXXXXXX

    • TC 971 AC 128 with MISC field "AQCPTC191" or "AQCPTC195"

    • Unreversed Taxpayer Protection Program (TPP) indicators; refer to IRM 25.25.6.1.7, Taxpayer Protection Program Overview, for a list of indicators

    • Letter 4464C and/or CP 05 notice

    • Letter 4415C, TC 971 with AC 044 MISC>CP05A, or Examination correspondence

      Caution:

      The presence of TC 971 AC 199 does not automatically indicate RIVO involvement. See IRM 25.25.5-2, Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO, for additional information.

  2. Only certain transcripts with RIVO involvement should be received in IDTVA. Refer to the table below for descriptions of Credit Transcripts with RIVO involvement IDTVA will resolve:

    If the Account Reflects And
    (1)
    • No open RIVO IDRS control, or an IDRS control was opened by AMRH, with subsequent adjustment action to reverse the return information by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

    • An unresolved credit remains on the module from a TC 610 or TC 670 payment, and the taxpayer’s valid return is not on MFT 32 or TRDBV does not show GUF Void/Deleted, and

    • A Letter 112C requesting a return was sent.

    • The taxpayer submits a return in response to the Letter 112C.

    (2)
    • There is an open IDRS control to RIVO 148NNNNNNN or 065NNNNNNN, or

    • There is an open IDRS control to Return Integrity & Compliance Services (RICS), Earned Income Tax Credit (EITC), Refund Tax Compliance (RTC), or Questionable Refund Program (QRPA) 1381NNNNNN.

    • An unresolved credit remains on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

    • There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

    (3)
    • There is no open RIVO IDRS control and the freeze is due to an External/Bank Lead issue, identified by TC 720.

      Note:

      The TC 720 amount may be less than the TC 846 if bank fees were deducted.

    • An unresolved credit remains on the module, and

    • There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

    (4)
    • There is no open RIVO IDRS control and the module contains a TC 971 with AC 134, AC 199, or AC 617.

      Exception:

      TC 971 with AC 199 with MISC>DPC is not RIVO related.

      Exception:

      If the module contains an unreversed TC 971 with AC 124, see (6) below in this table.

    • An unresolved credit remains on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam, and

    • There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

    (5)
    • There is no open RIVO IDRS control with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team, or Exam,

    • An unresolved credit remains on the module and CC ENMOD shows TC 971 with AC 506 with any MISC field that contains the literal RICS, RIVO, AMTAP, or PRP, and

    • There is a freeze condition that involves a -A Freeze.

    (6)
    • There is no open RIVO IDRS control and the module contains TC 971 AC 121 or AC 124.

    • An unresolved credit remains on the module, and

    • There is a freeze condition that involves a -A Freeze.

    (7)
    • There is no open RIVO IDRS control, the module contains TC 972 AC 121, and AMS does not show that the taxpayer authenticated.

    • An unresolved credit remains on the module, and

    • The freeze condition does not involve a -A Freeze.

    (8)
    • There is no open RIVO IDRS control and the module contains TC 971 AC 123 or AC 129.

    • An unresolved credit remains on the module.

    (9)
    • There is no open RIVO IDRS control and Memphis QRP, or Brookhaven Pre-Refund has made an adjustment, or

    • The module is in zero or debit balance.

    • There is a freeze condition that involves a -A Freeze, or there is an IDT issue that was not fully resolved.

  3. Refer to the table below for Credit Transcript assignment procedures:

    If Then
    (1) The Credit Transcript referral does not meet IDTVA criteria,
    • Return to the originating employee/function.

    (2) The Credit Transcript referral is the result of an unresolved credit due to an IDT issue that was not fully resolved.
    • Assign the case to the employee who worked the original case. Include a CIS case note that indicates the case is being assigned due to an unresolved credit.

    • If the employee who worked the case is no longer in IDTVA, assign the case to the IDTVA employee assigned to work a case for the same taxpayer, when possible.

    • Assign the case to the general holding number when the employee who worked the original case is no longer in IDTVA and there is no other existing case.

      Note:

      When assigning the case to an IDTVA Specialty Function, the Category Code will remain IDT6/IDS6. Update the CIS case Priority Code to 2.

    (3) The Credit Transcript referral with RIVO involvement meets IDTVA criteria.
    • If there is an open case for the same taxpayer, assign the Credit Transcript to the IDTVA employee assigned to work that case.

      Note:

      When assigning the case to an IDTVA Specialty Function, the Category code will remain IDT6/IDS6. Update the CIS case Priority Code to 2.

    • Assign the case to the general holding number if there is no other existing case.

Credit Transcripts Resolution
  1. Refer to Exhibit 25.23.4-8, Order of Priority Listing - IDTVA-A and IDTVA Specialty Functions, for prioritization of IDT6/IDS6 cases. When resolving IDT6/IDS6 cases, do not update the category code based on the original case category code (for unresolved credits) or to IDT8/IDS8 (for RIVO involvement).

  2. Prior to taking action to resolve a credit transcript, ensure IDTVA criteria is met. If the case does not meet IDTVA criteria, return the transcript to the originating employee/function. Refer to IRM 25.23.4.6.6.1, Credit Transcripts - IDT6/IDS6 (IDTVA Screeners Only), for additional information.

  3. For Statute Year Credit Transcripts that do not have a -A Freeze on the module:

    1. Determine if the credit(s) are available for refund or offset. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, and IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim.

    2. Apply credits available for refund or offset to outstanding liabilities, if applicable.

    3. Manually refund any allowable amount remaining. Refer to IRM 21.4.4.3(3), Why Would a Manual Refund Be Needed?, and IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional information.

    4. Move any credits not available for refund or offset to the Excess Collection File. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

  4. For transcripts received that do not include a -A Freeze on the module and are not for a statute year, research the account to determine if there are any indications of IDT.

    If Then
    (1) You determine the account is impacted by IDT,
    • Work the case following normal procedures.

    (2) You determine the account is not impacted by IDT,
    • Follow normal freeze code procedures. Refer to IRM 21.5.6.4, Freeze Code Procedures.

  5. For Credit Transcripts with a -A Freeze on the module, determine if the -A Freeze is the result of an unresolved IDT issue or if an additional return was received after the IDT case was closed.

    If Then
    (1) The -A Freeze is the result of an unresolved IDT issue,
    • Work the case following normal procedures.

    (2) The module reflects a credit that was not addressed during the resolution of an IDT case, a -A Freeze from an additional return received after the IDT case was closed is present, and there is another CIS case for that return.
    • Link the cases, and contact the other control to determine ownership of the case.

    • If the additional return is an IDT return or the IDTVA employee is trained to work the other program (i.e., DUPF, XRET), the IDTVA employee will take ownership of both cases.

    • If the additional return is not an IDT return and the IDTVA employee is not trained to work the other program, the IDTVA employee will resolve the credit, close the IDT6/IDS6 case, and advise the other control of the actions taken.

    (3) The -A Freeze is the result of an additional return received after the IDT case was closed, and there is not another CIS case for that return,
    • Determine if the additional return is an IDT return.

    • If the additional return is an IDT return, follow normal procedures to resolve the case.

    • If the additional return is not an IDT return, resolve the credit using the procedures outlined in (2) above. Do not address the additional return.

    (4) If there is a -A Freeze on a module with RIVO involvement,
    • Follow normal procedures to resolve. See IRM 25.23.4.10.8, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement - Resolution Tables.

Non-Streamline Identity Theft (IDT) Case Processing

  1. Non-streamline case processing applies when IDT has been determined and the IDT return cannot be nullified. Any lost refunds on the IDT return should be moved to the IRSN where the related IDT return will reside.

    Reminder:

    For all non-streamline case processing, the TIN-Related Problem Research Sheet is required. See paragraph (6) of IRM 25.23.4.6.2, IDTVA - Additional Research and Required Actions, for additional information.

    Reminder:

    Each return/case must be considered separately for each tax year. If one or more returns cannot be nullified, the case will be worked as a non-streamline case. If one or more of the IDT returns can be nullified, they should be worked as a streamline IDT case following guidance in IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing.

    Reminder:

    When the only income reported on an invalid return was earned by the valid taxpayer, nullify the return.

  2. Every effort will be made to determine CN ownership based on the information provided and directly available prior to contacting the taxpayer(s).

    Caution:

    The "Social Security Administration Social Security Number Verification" printout is NOT acceptable proof of ownership of the CN. CN ownership determinations previously made due to receipt of the printout are not affected by this change. If a printout is or has been received for an unresolved case, the printout will be retained with the case but it will not determine ownership.

  3. See IRM 25.25.2.13, Identity Theft Scheme Criteria, for the characteristics of common IDT schemes.

  4. If NUMIDENT or, for ITIN cases, EUP/ITIN RTS, clearly shows the owner of the SSN or ITIN, proceed to guidance in IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to determine the appropriate scenario to resolve the case.

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

     

    Note:

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

Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations

  1. Thorough account research must be completed following procedures in IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, prior to taking any actions to resolve the identity theft case.

  2. Careful consideration of all available information is necessary to ensure the correct taxpayer is identified as the CN owner and the correct case processing procedures are followed.

    Reminder:

    Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

  3. The following subsections are intended to be considered in the order in which they are listed:

    • IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing

    • IRM 25.23.4.8.2, Non-Streamline Identity Theft (IDT) Determinations

    • IRM 25.23.4.8.3, Income Related Identity Theft (IDT) - General

Streamline Identity Theft (IDT) Case Identification and Processing

  1. Procedures in this section are for cases where IDT has been determined and the IDT return is a nullity. Modules may reflect RIVO involvement, but returns can also be determined to be nullities utilizing IRP data, the Fraud Refund Scheme Listing, decedent taxpayer involvement, or IRPTR/IDRS data decision tree criteria. When the only income reported on an invalid return was earned by the valid taxpayer, the return can be nullified. Any lost refunds on the IDT return should be moved to general ledger (GL) 1545 account. Refer to IRM 25.25.4.7, Reversing Identity Theft Lost Refunds, for additional guidance.

  2. Each return must be considered separately for each tax year. If all IDT returns on an account can be nullified, the case should be worked as a streamline case. Any IDT returns that cannot be nullified must be worked following non-streamline procedures. See IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing.

  3. You must determine the case type based on one or more of the following:

    • IDT with RIVO Involvement

    • IDT with Decedent Taxpayer Involvement

    • IDT with IRP Data, Refund Scheme or Schedule C Involvement

    • IDT with Married Filing Joint Scheme Involvement

    • IDT with Preparer Data Breach Involvement

    Note:

    Bullets 1-5 above are listed in the order in which the streamline process criteria must be considered. In some instances, a case may have characteristics of more than one streamline process. Review the guidance for each process to determine which method will allow you to work your case effectively and efficiently.

  4. When only one return is present and research indicates the return meets streamline processing criteria, refer to IRM 25.23.4.8.1.5.2, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - One Return Present.

Identity Theft (IDT) with RIVO Involvement
  1. Return Integrity & Verification Operation (RIVO) is a pre-refund revenue protection program focused on identifying and stopping fraudulent refunds primarily generated from wage and withholding type of income. Accounts Management utilizes streamline processes to work these IDT cases. Much of this activity occurs very early in the tax year prior to normal processing time frames and involves only originally filed returns.

  2. Accounts with RIVO involvement may show any of the following: a TC 971 with Action Codes 121, 124, 129, 134, 199 (see Exhibit 25.25.5-2, Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO. If the TC 971 AC 121/124 has been reversed by a TC 972 AC 121/124, the RIVO Taxpayer Protection Program (TPP) process has been completed. If the TC 971 AC 134 has been reversed with a TC 972 AC 134 and the refund from the TC 150 has been issued, then RIVO has determined it is no longer interested in the return. If there is no -A freeze and the taxpayer indicates that the TC 150 was backed out in error by RIVO, refer the case for resolution:

    • Send an e4442 to RIVO stating that the return was backed out in error as identity theft needs to be reinstated. Employees that do not have e4442 capabilities should follow guidance in paragraph (2) of IRM 21.5.6.4.35.3.1.1, -R Freeze with RIVO Involvement and the Taxpayer is Claiming Identity Theft.

    • Place the e4442 in the "RICS RIVO Complex Issue" , Not ID Theft Queue.

  3. On cases with a P- freeze and either of the following is present on the account, only RIVO can release the overpayment with these account conditions. If the account also contains a -A Freeze, work the case using normal procedures, but also refer the case to RIVO to release the freeze. Send an e4442 to RIVO requesting release of the P- Freeze. Use Referral type IRM and select category RICS IVO – CP 53X (TC 841 DLN 77711/77712/77713) from drop-down.

    • TC 841 DLN Blocking Series 77711, 77712 or 77713 or

    • TC 971 AC 123 MISC>TPP RECOVERY and TC 971 AC 805 MISC>REFCANCL18

    Note:

    If the account contains a TC 971 AC 123 MISC>TPP RECOVERY with no P- freeze and a TC 841 (CC IDT48) will be input as part of the resolution of the IDT claim, then this will post a P- freeze and generate the TC 971 AC 805 MISC>REFCANCL18. Send an e4442 to RIVO to release the pending freeze. Include in remarks field, CC IDT48 TC 841 input. Please release freeze once P- freeze posts.

  4. Close all cases with RIVO involvement with the IDT8/IDS8 category code, unless the case meets criteria described in (5) below. Cases where RIVO determined the return to be fraudulent show one of the following:

    • The account may be completely reversed.

    • The account will be completely reversed except for a refundable credit.

    • The account won’t be reversed but TXMOD shows that a CP 05A notice was issued.

    • The account won’t be reversed but TXMOD shows a MISC field "AMWEX60033 NOCP05A" .

    • The account may show a TC 971 AC 199 with the MISC field "AMWEX60033 REFEFDS or other similar miscellaneous literals" per Exhibit 25.25.5-2, Transaction Code (TC) 971/Action Code (AC) 199 Miscellaneous (MISC) Field Literals for RIVO. For cases with other MISC literals, the CSR must verify the return is "invalid" .

      Caution:

      Schedule C cases with RIVO involvement cannot be nullified, unless it has been determined to be a case on the "Refund Scheme Listing" , or meets the criteria inIRM 25.23.4.8.1.3, Identity Theft (IDT) with IRP Data, Refund Scheme or Schedule C Involvement.

      Reminder:

      IDT6/IDS6 cases created due to the generation of a transcript for modules with RIVO involvement will not be updated to IDT8/IDS8.

  5. The account may have been reversed by RIVO, before all the IRP data was made available. CP 36N and CP 36P transcripts generate when any RIVO indicator is on CC TXMOD/ENMOD. The CP 36N generates when the module is in a credit balance and the CP 36P generates when the module is in a zero or debit balance. If there is an -A freeze and your research supports a different determination, resolve the case using the appropriate program and Category Code (e.g., DUPF, IDT1, IDT3, 1040X, etc.,) for that specific case type.

  6. Do not attempt to contact RIVO units or route cases to the following controls. Continue to follow established IRM procedures for your case type (examples: DUPF, XRET, IDT(X)/IDS(X), TPRQ, etc.).

    Open Control Explanation
    14875XXXXX Generic number for closed CI prior year Transcripts. Taxpayer Relations has forwarded the transcript to the generic number
    14876XXXXX Generic holding number used to input CC NOREF/NOREFE. RIVO is not actively working the case
    148XX Generic number, if the case is not assigned to a specific TE or under the NCAT control

  7. A return is eligible to be referred to RIVO for verification if it meets all of the following criteria:

    • The taxpayer has an SSN, not an ITIN

    • The return was filed by the SSN owner

    • The case is not a CP 36F

    • The return is a current year return

    • IRPTR is not available or does not match the income reported on the "current" year return

    • IRPTR is not "fully loaded" for the "current" tax year

    For additional guidance, see IRM 25.25.2.9, Screening Non-Pipeline Questionable Returns. Also see referral procedures below.
    If And Then
    (1) The 2nd return does not match IRPTR, or IRPTR information is not available, and the 2nd return is eligible to be referred to RIVO, RIVO determined the 1st return to be fraudulent per paragraph (4) above
    and
    meets all the requirements in paragraph (7),
    Perform the following actions:
    • Accept the RIVO determination that the original return is fraudulent

    • Open a control base to RIVO 1487777777, C# AMTOVERIFY, A using Category Code MXEN

    (2) Unresolved credits remain on the module with no subsequent adjustment action or activity by RIVO, Memphis QRP, Brookhaven Pre-Refund Team or Exam, Freeze condition involves an -A freeze, Do not open a new control base.
    Close all previous erroneous open control bases for 1487500000, 1487599998, 0650199999, and 0654599998.
    Also update the activity to" CLSTOIDTVA" This way RIVO will know IDTVA is resolving the case.

  8. Proceed to IRM 25.23.4.10.8, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement - Resolution Tables, for additional processing guidance.

Identity Theft (IDT) with Decedent Taxpayer Involvement
  1. Cases with deceased indicators can be identified on CC INOLET or IMFOLE with the actual date of death (DOD) displayed on IDRS. Fraudulent activity on a deceased taxpayers’ account usually occurs very early in the tax year, prior to normal processing time frames, and involves only originally filed returns.

  2. Decedent cases usually require the filing of a Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Check for evidence that is required when processing a deceased taxpayer’s return. See IRM 21.6.6.4.22.2, Processing Decedent Account Refunds, for additional information.

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

  4. Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for additional processing guidance.

Identity Theft (IDT) with IRP Data, Refund Scheme or Schedule C Involvement
  1. When conducting research on cases, you should determine the type of case you are working, such as invalid/valid, valid/invalid, or invalid/invalid, etc. Before proceeding with case processing, complete and thorough research must be conducted. To aid you in resolving the case, you will use various IRM guidance throughout this section and other IRM sections, in addition to resources listed below.

    • IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview

    • IRP Data - Research CC IRPTR/TRDBV to review case for W-2’s, 1099’s etc.

    • Refund Scheme Listing - This listing is updated periodically and must be reviewed to determine if new schemes have been added

    • IRPTR/IDRS Data Decision Tree - The decision tree in Exhibit 25.23.4-1 was created to assist employees in reviewing cases with specific characteristics of fraud

    • IRM 25.23.4, IDTVA Paper Process - For IRSN processing, an IRSN should be created as a last resort when employees are not able to make a CN determination on one or both returns

    • Exhibit 21.5.3-6, Fraud Referral Claims - Consider a fraud referral when a case appears to be fraudulent and does not have an existing treatment stream

    • IRM 25.23.2.6.6.3, Identity Theft Claims Submitted by Individuals Who Do Not Appear to be the Victims

    Caution:

    Because an external business data breach return can be identical or similar, also refer to IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, for additional items to review to prevent the mishandling of an actual IDT case.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

  3. For returns with Schedule C income, complete research must be performed. A determination must be made whether the original return can be nullified or if it must be moved to an IRSN. This is regardless of whether the refund was lost, offset or falls under the no lost refund process.

  4. To treat a return with Schedule C income as a nullity, there must be a high probability that the Schedule C return was not filed by the TIN owner.

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

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Example:

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

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    10. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

    Example:

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

  8. In situations where it cannot be easily determined whether a return with Schedule C income should be treated as a nullity, move the return to an IRSN. Also refer to IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing.

  9. If the refund is "not lost" or only partially lost, the lead or manager must review the case and concur with the nullity determination to ensure the return is not nullified in error. Accurate and complete research must be performed, in order to avoid a potential missed assessment. CSR/TE should include a case message of Schedule C determination and suspend to the work leader/manager for approval. Prior to requesting approval, CSR/TE must input a case note with their determination. If a work leader/manager concurs with the findings and the return(s) are nullified, a CIS case note will be placed on CIS indicating "Manager or Lead concurs with determination" , or similar remarks.

  10. In situations where a Schedule C return with a "no lost refund" was treated as a nullity and the taxpayer submits another claim or makes an inquiry about the refund, refer the case to ITVA HQ via secure email. Prepare and email Form 4442 using the subject line: “Schedule C nullity – refund inquiry” to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or similar remarks. Document all research completed in a CIS case note and/or on Form 4442. Attach Form 4442 to your CIS case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

  11. Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for additional processing guidance.

Identity Theft (IDT) with Married Filing Joint Scheme Involvement
  1. In the MFJ Scheme, the IDT return has a married filing joint filing status. The thief takes two victims who are not married to one another and files a joint return, or files a joint return for a couple who are married to one another. Since there is more than one IDT victim, additional research and actions are necessary.

    Note:

    The thief sometimes lists the same victim as a primary taxpayer on one return and a secondary taxpayer with a different spouse on another return. This can create a chain of SSNs that need to be researched. However, it does not have to be a multiple chain of SSNs used on a return to be considered a Married Filing Joint scheme. It can be one return with two unrelated victims.

  2. Research the primary and secondary TINs on the assigned case to determine if the TINs have been used on any type of return (valid or invalid), or any type of correspondence (e.g., Form 14039) indicating IDT.

     

    Example:

    The primary TIN may have been used as a secondary TIN on another IDT return.

    Example:

    The secondary TIN may have been used more than once.

    Example:

    John (primary) and Mary (secondary) file a joint return. Mary has another joint return under her TIN listed (as a primary) and Nancy (as a secondary). This return with Mary and Nancy meets Married Filing Joint Scheme Criteria. You must also research Nancy’s SSN to see if she was listed as a primary or secondary taxpayer on another return.

    Example:

    Mary (primary) and Lucy (secondary) are filed on the return that meets Married Filing Joint scheme criteria. Lucy has not filed yet so a TC 594 CC 084 is under her TIN but nothing else.

    Example:

    Ex girlfriend/boyfriend (not married/living together) files without TP's knowledge/consent.

    Example:

    Mary (primary) and Lucy (secondary) are filed on the return that meets Married Filing Joint scheme criteria. Lucy has filed as a secondary on a return with Matt (as a primary). Lucy has two TC 594 CC 084 transactions under her TIN and nothing else.


    This list of examples is not inclusive of all the Married Filing Joint schemes that you may encounter.

  3. During the course of research, if a TIN was used on any return that meets the Married Filing Joint Refund Scheme Criteria, as found on the Refund Scheme Listing, you must address the affected TINs following the procedures in the If/Then chart below.

    If Then
    (1) The primary on the assigned case is a secondary on an invalid return OR
    the secondary is a primary on an invalid return.
    • Create a new case on the XREF TIN using the received date of the assigned case, if a case does not already exist.

    • Assign the new or existing case to yourself.

    • Link the new or existing case to your assigned case, if not already linked.

    • Update the Category Code as needed.

    • Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity theft Cases for specific instructions.

    (2) The primary on the assigned case is a secondary on a valid return AND the account under the XREF SSN does not reflect an indication of further IDT (e.g., 971-151, 594-084) OR
    The secondary is a primary on a valid return AND the account under the XREF SSN does not reflect an indication of further IDT.
    Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.
    (3) The primary on the assigned case is a secondary on a valid return AND the account under the XREF SSN does reflect an indication of further IDT (e.g., 971-151, 594-084) OR
    The secondary is a primary on a valid return AND the account under the XREF SSN does reflect an indication of further IDT.
    • Create a new case on the XREF TIN using the received date of the assigned case if a case does not already exist.

    • Assign the new or existing case to yourself

    • Link the new or existing case to your assigned case, if not already linked.

    • Update the Category Code as needed.

    • Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

    • Resolve the new or existing case on the XREF TIN utilizing the applicable procedures in IRM 25.23.4, IDTVA Paper Process.

    (4) The secondary has not filed or informed the IRS of IDT (e.g., Form 14039) and there is NO indication of further IDT. Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.
    (5) The secondary has not filed or informed the IRS of IDT (e.g., Form 14039) and there is indication of further IDT.
    • Create a new case on the XREF TIN using the received date of the assigned case if a case does not already exist.

    • Assign the new or existing case to yourself

    • Link the new or existing case to your assigned case, if not already linked.

    • Update the Category Code as needed.

    • Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

    (6) The secondary TIN is used on another return as a secondary taxpayer on a valid return and there is NO indication on the XREF TIN of further IDT. Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, to correct the account.
    (7) The secondary TIN is used on another return as a secondary taxpayer on a valid return and there is indication on the XREF TIN of further IDT.
    • Create a new case for the further IDT Issue on the XREF TIN.

    • Assign the new or existing case to yourself

    • Link the new or existing case to your assigned case, if not already linked.

    • Address the IDT impacted modules for both TINs utilizing the applicable streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for specific instructions.

    • Resolve the new or existing case on the XREF TIN utilizing the applicable procedures in IRM 25.23.4, IDTVA Paper Process.

    Reminder:

    TC 592 must be input to reverse TC 594 CC 084 cross referencing the unrelated secondary taxpayer. The TC 592 will reverse all TCs 59X on the module. Input of a TC 594 CC 084 cannot be post delayed. If the valid taxpayer is the secondary on a valid MFJ return, monitor the account for one week. After one week, input TC 594 CC 084 to cross reference the correct spouse.

Invalid Joint Election Consideration
  1. There are three situations where a joint return is invalid:

    1. Unlawful - The taxpayers had no legal right to file jointly.

    2. Forgery - One spouse did not sign the return.

    3. Invalid election - One of the individuals on the joint return did not elect to file a joint return.

      Note:

      Tacit consent is a factor to consider for invalid elections and forgery allegations.

  2. Do not confuse MFJ Schemes with invalid joint elections.

  3. If an invalid joint election (IJE) is determined, the IDT claim would be invalid. See IRM 25.23.2.6.6.2, No Identity Theft (NOIDT) Determinations - TC 972 AC 522 NOIDT, for additional instructions.

  4. Filing a joint return is an election. A joint return must be signed under penalty of perjury by both taxpayers to be a valid election for joint filing status.

    Note:

    Substitute for Return (SFR) and Automated Substitute for Return (ASFR) filed by the Service are never a joint return; however, a joint return can be filed after the assessment (associated with the SFR or ASFR) has posted.

  5. Many returns will not have signatures since returns are now filed electronically. Tacit consent must be considered in determining the validity of the joint filing status shown on the return. See IRM 25.15.19.2.4.1, Tacit Consent Factors, for additional information.

  6. A joint return may contain an invalid joint filing status election if:

    1. An original or amended joint return was filed and processed with only one signature on a paper filed return.

    2. The return was signed; however, it is established that the signature was forged and there is no tacit consent.

    3. The return was signed under duress.

    4. One of the individuals filed a timely return using Single, Married Filing Separate (MFS), or Head of Household (HOH).

      Reminder:

      Complete IDRS research on both taxpayers’ TINs.

  7. To determine if the taxpayers resided in a state that recognizes common law marriage, see IRM 5.19.11.7.1.2.2, Common Law Marriage.

  8. The marriage may not be legal for Federal tax purposes (even if the claim is received after the due date) and the claim allowed if the following verification is present:

    1. Court documents showing the marriage was not valid for the tax period involved: Copy of divorce decree or separate maintenance,

    2. Documents verifying that the taxpayers did not live together during the last six months of the tax year, such as a lease agreement, utility bills, etc., or

    3. An affidavit, signed and sworn under penalty of perjury, stating the marriage does not exist.

  9. Follow IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separate is Invalid or Filed with Incorrect Status. An allocation of all return income, credits, and payments is required. If the taxpayer does not provide an allocation, use internal research resources to complete the allocation. Refer to IRM 21.6.1.5.8, Allocating Married Filing Joint Cases, for additional information.

  10. If the taxpayers involved are considered legally married, determine if a case meets the invalid joint election criteria by considering all available information. Tacit consent factors will be considered and are found in IRM 25.15.19.2.4.1, Tacit Consent Factors.

  11. If tacit consent does not apply and the taxpayer has submitted no further documentation supporting their invalid joint election claim, close the case as a no consideration for both identity theft and the IJE claim.

  12. Follow the instructions in IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separately is Invalid or Filed with Incorrect Status. Do not remove any Compliance assessments or income associated with the taxpayer being removed from the joint return. If TC 470 CC 90 was input, TC 472 must also be input when the taxpayer will have a balance owed.

  13. Determine if the taxpayer claiming the fraud has a filing requirement. See IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, for more information. If the taxpayer has not filed or submitted a valid return with their claim, take the following action:

    • Issue a Letter 5064C advising the taxpayer to submit a completed return including the required signatures or a statement indicating they did not have a filing requirement with a copy of our letter. Suspend the case for 40 days to allow the taxpayer time to respond.

      Exception:

      Do not request a new return if the return is six years or more overdue.

  14. If the taxpayer does not respond to the request for a return or the response does not include a valid return, follow the instructions below:

    1. Prepare Form 2209, Courtesy Investigation, as instructed by IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions.

    2. Issue a Letter 4674C as a closure letter. Include paragraph (a) reminding the taxpayer of their obligation to file a federal tax return.
      IDTVA-Exam Only - If AIMS is open, close the claim as "NOIDT" and notify Exam to work the case as an invalid joint election.

Identity Theft (IDT) with External Business/Preparer Data Breach Involvement
  1. You can identify taxpayers known to be impacted by a preparer data breach by a TC 971 AC 123 MISC "PREPARER CONTACT" with no secondary date on CC ENMOD/IMFOLE. The indicator is placed on the accounts of taxpayers whose tax return preparer has notified the Service of compromised PII due to a data breach.

    Note:

    A taxpayer may submit a Form 14039, police report, or correspondence indicating their preparer advised them of their personal information potentially being compromised due to a data breach incident. A TC 971 AC 123 MISC "PREPARER CONTACT" may or may not be present in these instances. Conduct research as described below to determine if the taxpayer is impacted by identity theft.

  2. Taxpayers are not always aware they are impacted by a data breach. Caution must be used when speaking with the taxpayer to avoid inadvertent disclosure of this account information even after verifying the taxpayer’s identity. The external business/preparer is responsible for advising the taxpayer of the incident.

  3. Identity theft returns resulting from an external business/preparer data breach may appear to be duplicate or amended returns. These fraudulent returns may include:

    • Duplicate or similar information to previously filed returns.

    • Income information that is consistent with filing history and/or matches IRPTR data.

    • The same or similar tax return preparer information.

    • Different refund/direct deposit information.

  4. If it appears the valid taxpayer received a refund related to a fraudulent return filed due to a data breach incident, refer to IRM 25.23.4.8.1.5.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

  5. The presence of a TC 971 AC 123 MISC "PREPARER CONTACT" on a taxpayer’s entity does not confirm identity theft. Complete research must be conducted to verify the taxpayer’s claim. Returns determined to be invalid can be resolved following nullity procedures with lead/managerial approval. Account research and approval must be documented in a CIS case note prior to taking action on the account. Use the table below to assist in making CN ownership determinations when there is an external business/preparer data breach indicator on the account.

    Note:

    When the taxpayer is reporting income related IDT for any tax year, the presence of a TC 971 AC 123 will not be considered when conducting research. Normal procedures will be followed to make a determination and resolve the account.

    If And Then
    (1) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present, The only difference between the posted return and duplicate return is the refund/direct deposit information,
    • Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

    (2) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present, There is no difference between the posted return and duplicate return; this is a true duplicate,
    • When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, or if after researching the account, you cannot find evidence of tax related identity theft, refer to paragraph (6) below.

    • When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

    (3) Form 14039, police report, or correspondence indicating identity theft is received, there is a TC 971 AC 123 MISC "PREPARER CONTACT" present, There is only one return present,
    • When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and refund/direct deposit/balance due information are all consistent with the filing history of the valid taxpayer, refer to paragraph (6) below.

    • When the name/address, dependents, income/credits, tax preparer/3rd party contact authorization, and/or refund/direct deposit/balance due information are not consistent with the filing history of the valid taxpayer, there is a high probability the valid taxpayer has not filed a return. Consider the taxpayer submitting the identity theft claim to be the valid taxpayer. Refer to paragraph (7) below.

  6. Returns filed using information obtained from a preparer data breach have a higher likelihood of being processed as valid returns. When a taxpayer is known to have been affected by a preparer data breach incident but has not yet been impacted by tax related identity theft, the Service will take additional precautions to protect the taxpayer’s account. Take the following actions to resolve accounts with the TC 971 AC 123 "PREPARER CONTACT" indicator when an invalid return has not been filed:

    • Input TC 971 AC 506 with MISC "WI AM OTHER" . For the secondary date, use the current filing year or the year of breach, if known. Do Not input a TC 971 AC 504.

    • Issue Letter 4674C . Include paragraphs H, 7, 8, w, y, and /. For international taxpayers, use : in place of /.

      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. Use the following special paragraphs in addition to the paragraphs above:
      9:"Because we processed your claim late in the year, we are unable to mail an IP PIN in December or January for this upcoming filing season. File your return as normal for this tax season. We will mail you an IP PIN next December or January. If your address changes before December, you will need to complete Form 8822, Change of Address. Visit www.irs.gov/form8822."
      And
      !:"If you want an IP PIN to use for the upcoming tax year, visit our website at www.irs.gov/getanippin. A new IP PIN generates each year in mid-January. You can retrieve it by logging into your account at www.irs.gov/getanippin. If you chose to create an account to obtain an IP PIN, you will not receive a notice in December or January as stated above."

  7. Follow procedures in IRM 25.23.4.8.1.5.2, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - One Return Present, or IRM 25.23.4.8.1.5.3, External Business/Preparer Data Breach Streamline Identity Theft (IDT) - More Than One Return Present, to correct the account.

TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

      Note:

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

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. If the taxpayer says they transferred the refund amount to the criminal, mistakenly believing they were repaying the refund to the IRS, but does not provide the written documentation described in (4) above, the refund will be treated as if the taxpayer had full access and use of it. Take the following action:

    If Then
    (1) The taxpayer did not file a return,
    1. Follow the "no lost" refund procedures in paragraph (2) of IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, to correct the taxpayer’s account.

    2. Follow the procedures in IRM 21.4.5.6.1, Account Actions For Category D Erroneous Refunds, to request repayment of the refund.

    (2) The taxpayer did file a return,
    1. Follow the procedures in IRM 25.23.4.10.1, Invalid Return/Valid Return - No Lost Refund, to correct the taxpayer’s account.

    2. If the refund issued on the IDT return is greater that the refund on the taxpayer’s return, follow the procedures in IRM 21.4.5.6.1,Account Actions For Category D Erroneous Refunds, to request repayment of the difference.

External Business/Preparer Data Breach Streamline Identity Theft (IDT) - One Return Present
  1. Consider the case to meet One Return IDT when any of the following account conditions exist. Take the necessary actions to resolve the account as described.

    Reminder:

    If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    If And Then
    (1) Only one return meeting nullity criteria has posted (TC 150): For the year in question, the taxpayer:
    • Was not of age to work,

    • Is deceased,

    • Does not have a filing requirement, or

    • Has not yet filed a return.

    • Ensure CIS case notes include your research, determination, and lead/managerial approval to nullify the invalid return.

    • Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

    • Input an adjustment to fully back out the return. Use BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

    • If resolving IDT for the current year, input TC 971 AC 850 when the invalid return includes direct deposit information.

    • If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.1.5.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

    • If any portion of the refund is lost, see IRM 25.25.4.7, Reversing Identity Theft Lost Refunds.

    • Input TC 971 AC 501/506, as appropriate.

    • Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the taxpayer has a filing requirement, and take appropriate actions.

    • Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

    (2) Only one return filed by the valid taxpayer has posted (TC 150): A second, unprocessed return meeting nullity criteria has been received.
    • Input TC 290 .00 with BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

    • Input TC 971 AC 501/506, as appropriate.

    • Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

External Business/Preparer Data Breach Streamline Identity Theft (IDT) - More Than One Return Present
  1. Follow the procedures below when multiple returns are present.

    Reminder:

    If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    Reminder:

    Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

    If And Then
    (1) Multiple invalid returns are present, For the year in question, the taxpayer:
    • Was not of age to work,

    • Is deceased,

    • Does not have a filing requirement, or

    • Has not yet filed a return.

    • Ensure CIS case notes include your research, determination, and lead/managerial approval to nullify the invalid returns.

    • Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

    • If resolving IDT for the current year, input TC 971 AC 850 when the invalid return includes direct deposit information.

    • Input an adjustment to fully back out the return(s). Use BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

    • If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.1.5.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

    • If any portion of the refund is lost, see IRM 25.25.4.7, Reversing Identity Theft Lost Refunds.

    • Input TC 971 AC 501/506, as appropriate.

    • Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the taxpayer has a filing requirement, and take appropriate actions.

    • Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

    (2) The valid taxpayer’s return has posted as the TC 150, At least one invalid return meeting nullity criteria has been received.
    • Ensure CIS case notes include your research, determination, and lead/managerial approval to nullify the invalid return(s).

    • Input TC 290 .00 with BS 05 and RC 139. Use HC 3 if the adjustment will not result in a credit remaining on the module. Use HC 4 to prevent a refund of any remaining credits, when necessary.

    • Input TC 971 AC 501/506, as appropriate.

    • Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

    (3) An invalid return has posted as the TC 150, The valid taxpayer’s return has been received.

    Note:

    This scenario will be followed when more than one invalid return is received, the valid taxpayer has filed a return, and the TC 150 has been determined to be invalid.

    • Ensure CIS case notes include your research, determination, and lead/managerial approval to nullify the invalid return(s).

    • Update the taxpayer’s entity information to reflect the CN owner’s name, current address, and phone number, if provided.

    • If the valid taxpayer’s return does not have a posted TC 976, see IRM 25.23.4.6.5.2, Unprocessed Documents, for applicable procedures.

    • If resolving IDT for the current year, input TC 971 AC 850 when the invalid return includes direct deposit information.

    • Input an adjustment to the valid return figures, as allowable. Use BS 00 and RC 139. Use HC 3 or HC 4 when a credit remaining on the module must be held.

    • If the valid taxpayer received the refund from the invalid return, see IRM 25.23.4.8.1.5.1, TIN Owners Receiving Fraudulent Refunds in Preparer Data Breach Scheme.

    • If any portion of the refund is lost, see IRM 25.25.4.7, Reversing Identity Theft Lost Refunds.

    • Input TC 971 AC 501/506, as appropriate.

    • Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for additional account actions that may be required.

Non-Streamline Identity Theft (IDT) Determinations

  1. When refund related identity theft (IDT) is suspected, the return in question must first be reviewed to determine if it meets streamline criteria, per IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing.

  2. When the return in question does not meet streamline criteria, refer to the applicable scenario below:

    • Form 14039 or police report was received: IRM 25.23.4.8.2.1, Taxpayer Identified Identity Theft (IDT) Determinations

    • IRS Identified: IRS Identified Identity Theft (IDT) Determinations

Taxpayer Identified Identity Theft (IDT) Determinations
  1. Follow the procedures below when a Form 14039 or police report has been received, there is only one return on the module, and the reporting taxpayer is stating they did not file the return in question. Ensure all required research has been completed prior to making a determination of CN ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions.

    Note:

    For ITIN taxpayers, refer to IRM 25.23.4.8.2.2, IRS Identified Identity Theft (IDT) Determinations.

    If And Then
    (1) A Form 14039, police report, or correspondence has been received, The claim and posted return contain different addresses,
    • If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

    • If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

    (2) A Form 14039, police report, or correspondence has been received and the return on file also includes an IDT claim, The claim and posted return contain different addresses,
    • Correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

    (3) A Form 14039, police report, or correspondence has been received, The claim and posted return contain the same address,
    • If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

    • If your research does not support a determination of identity theft, see IRM 25.23.2.6.6.2, No Identity Theft (NOIDT) Determinations - TC 972 AC 522 NOIDT.

    (4) A Form 14039, police report, or correspondence has been received and the return on file also includes an IDT claim, The claim and posted return contain the same address,
    • Correspond to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

  2. Follow the procedures below when a Form 14039 or police report has been received, there are multiple returns, and the reporting taxpayer is stating they did not file the return in question. Ensure all required research has been completed prior to making a determination of CN ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions.

    Note:

    For ITIN taxpayers, refer to IRM 25.23.4.8.2.2, IRS Identified Identity Theft (IDT) Determinations.

    If And Then
    (1) A Form 14039, police report, or correspondence is included with only one return, The returns contain different addresses,
    • If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

    • If your research does not support determining in favor of the taxpayer who submitted the inquiry, correspond with both taxpayers to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

    (2) A Form 14039, police report, or correspondence is included with only one return, The returns contain the same address,
    • If supported by your research, treat the identity theft inquiry as belonging to the valid taxpayer.

    • If your research does not support a determination of identity theft, see IRM 25.23.2.6.6.2, No Identity Theft (NOIDT) Determinations - TC 972 AC 522 NOIDT.

    (3) A Form 14039, police report, or correspondence is included with multiple returns, The returns contain the same address,
    • Correspond to secure necessary documentation to make a determination. Refer to IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written). Include the questionnaire. Refer to IRM 25.23.4.18.2.3, Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions Sent to Determine Common Number Ownership, and IRM 25.23.4.18.2.4, Final Stage Review (Associated with Letter 5064C Sent for Common Number Ownership), when the suspense timeframe has passed.

IRS Identified Identity Theft (IDT) Determinations
  1. Follow the procedures below when a Form 14039 or police report has not been received or the CN is an ITIN and identity theft is suspected. Ensure all required research has been completed prior to making a determination of CN ownership. See IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, and its subsections for detailed instructions.

    If And Then
    (1) Identity theft is suspected, and a claim has not been received (IRSID), or the CN is an ITIN, All of the following conditions are met:
    • This is the first time one of the taxpayers has used the CN AND the other taxpayer has used the CN for more than one year.

    • The filing history is appropriate for the DOB associated with the CN.

    • Consider the taxpayer who has used the CN for more than one year to be the valid taxpayer.

    • Add a CIS case note documenting your research and stating "1st Year Rule" to identify the scenario used to make the determination.

    (2) Identity theft is suspected, and a claim has not been received (IRSID), or the CN is an ITIN, All of the following conditions are met:
    • One of the taxpayers has used the CN for 3 or more years AND the other taxpayer has used the CN for less than 3 years.

    • The filing history is appropriate for the DOB associated with the CN.

    • Consider the taxpayer who has used the CN for 3 or more years to be the valid taxpayer.

    • Add a CIS case note documenting your research and stating "3 Year Rule" to identify the scenario used to make the determination.

    (3) Identity theft is suspected, and a claim has not been received (IRSID), or the CN is an ITIN, All of the following conditions are met:
    • Complete and careful research provides reasonable evidence of CN ownership.

    • A CN ownership determination cannot be made using scenario (1) or (2).

    • Leave a CIS case note documenting all research completed, including the evidence that supports your determinations.

    • Refer the case for managerial/lead concurrence with the determination made. A CIS case note documenting concurrence with the determination must be input prior to taking action to resolve the account.

Income Related Identity Theft (IDT) - General

  1. Income related identity theft (IDT) occurs when a taxpayer’s TIN is being used by someone else for income reporting purposes.

  2. Income related IDT is most commonly associated with the intentional misuse of a taxpayer’s TIN to obtain employment. However, it can also include use of someone else’s TIN to claim gambling winnings, receive unemployment benefits, or report any other type of income the TIN owner is unaware of (i.e., sale of assets, cancellation of debt, etc.).

  3. Income related IDT is considered non-tax-related, because it does not involve the filing of a fraudulent return. However, income related IDT will be treated as tax related when tax administration is impacted. Income related IDT has the potential to negatively impact the taxpayer if left unresolved. Review the list below for examples of common tax administration issues due to income related IDT.

    Note:

    In order for income related IDT to impact tax administration, there must be an assessment or refund issue.

    • Automated Underreporter (AUR) - Identified by a TC 922 followed by a TC 290 with an increase to tax and/or a decrease to credits.

    • Automated Substitute for Return (ASFR) - TC 150 .00 SFR followed by a TC 290 assessment, TC 494/495, and a TC 599 CC 088.

    • Exam Substitute for Return (SFR) - Identified by a TC 150 .00 SFR followed by a TC 300 assessment and TC 420/421.

    • Delinquent Return Refund Hold - Identified by the presence of a TC 971 AC 130, TC 570 with Julian date 999, RF displayed on IDRS on the module of the refund year, and a -R Freeze.

Income Related Identity Theft (IDT) - Determinations
  1. It is necessary to research and consider all information available when reviewing accounts potentially impacted by income related IDT. Incomplete research can result in the taxpayer continuing to be negatively impacted by IDT or the incorrect removal of income.

  2. Prior to making a determination, consider the following while you conduct research:

    • For the year in question, was the taxpayer of age to work?

    • Does the entity contain a TC 971 AC 525?

    • Do all income docs available on CC IRPTR have the taxpayer’s correct name (i.e., spelling, last name, or entirely different name)?

    • Do any income docs available on CC IRPTR reflect an address for the taxpayer that does not match the valid taxpayer’s current address or address history (i.e., different street address in the same city or different cities/states)?

    • Is the income reported on CC IRPTR consistent with the taxpayer’s employment history (i.e., same employer, history of only retirement income, etc.)?

    • Is the location of the employer consistent with the taxpayer’s employment history?

  3. After completing all necessary research, use the table below to determine if the taxpayer is a victim of income related IDT.

    Reminder:

    The taxpayer may be a victim of income related IDT and refund related IDT.

    If And Then
    (1) Form 14039, police report, or correspondence is received, The taxpayer specifies what income they did/did not earn,
    • Accept the taxpayer’s claim. Refer to paragraphs (5) - (8) below to identify necessary account actions.

    (2) Form 14039, police report, or correspondence is received, The taxpayer provides a general statement (i.e., I only worked in Texas.),
    • If your research supports accepting the taxpayer’s claim, refer to paragraphs (5) - (8) below to identify necessary account actions.

    • If you do not have enough information to complete the necessary research to make a determination, refer to paragraph (9) below.

    • If your research does not support accepting the taxpayer’s claim, refer to paragraph (10) below.

    (3) Form 14039, police report, or correspondence is received, There is no explanation of the identity theft issue,
    • If your research supports accepting the taxpayer’s claim, refer to paragraphs (5) - (8) below to identify necessary account actions.

    • If you do not have enough information to complete the necessary research to make a determination, refer to paragraph (9) below.

    • If your research does not support accepting the taxpayer’s claim, refer to paragraph (10) below.

    (4) The income related IDT issue is IRS identified, There is clear and convincing evidence to support making a determination,
    • Document the research you have completed in a CIS case note.

    • Obtain lead/managerial concurrence with your determination. This must be documented in a CIS case note.

    • Refer to paragraphs (5) - (8) below to identify necessary account actions.

  4. Refer to the table below for common scenarios to help you determine if the income related IDT issue will be resolved as tax related IDT or non-tax-related IDT.

    Tax Related Scenarios Non-Tax-Related Scenarios
    • AUR assessment that includes income not earned by the taxpayer

    • ASFR/Exam SFR assessment that includes income not earned by the taxpayer

    • Exam assessment reducing credits based on income not earned by the taxpayer

    • Refund Hold due to an unfiled return related to a filing requirement based on income not earned by the taxpayer

    • CP 2000 issued but no AUR assessment

    • ASFR/Exam SFR notice(s) but no assessment

    • Income earned by someone other than the taxpayer identified through CCA (with or without Compliance involvement)

    Note:

    This table may not include all scenarios.

  5. When you have determined the taxpayer is a victim of income related IDT, use a closing TC 971 AC 501 upon completion of all account actions when a Form 14039 or police report has been received and any of the following conditions exist on the module in question:

    • Income earned by someone other than the valid taxpayer has resulted in a subsequent AUR Exam assessment.

    • Income earned by someone other than the valid taxpayer has resulted in an ASFR Exam SFR, or unfiled return refund hold issue.

    • The income earned by someone other than the valid taxpayer has not resulted in an impact to tax administration and there is an invalid return present.

  6. When you have determined the taxpayer is a victim of income related IDT, input a closing TC 971 AC 504 EMPL-M, and issue a Letter 4674C/SP upon completion of all account actions when a Form 14039 or police report has been received and all of the following conditions exist on the module in question:

    • There is no subsequent AUR or Exam assessment.

    • There is no ASFR, Exam SFR, or unfiled return refund hold issue.

    • There is no invalid return.

      Example:

      The taxpayer receives a CP 2000 for tax year 2017 from Automated Underreporter for underreported wage income from SYZ Company. The case is an AUR recon case, and the account has already been assessed for the taxes due on the income. The taxpayer submits Form 14039 and states they did not work for that company, someone must be using their SSN to work. A determination is made that the taxpayer is a victim of income related IDT, and through CCA, it is discovered that someone is continuing to work for SYZ Company using the CN owner’s SSN for tax years 2018 and 2019, but no AUR notices were issued for either year. Due to an AUR assessment occurring on the 2017 module, this is considered tax related and would be closed with a TC 971 AC 501 INCOME. Since the 2018 and 2019 modules are impacted by identity theft but it has not yet affected their tax account, this would be treated as non-tax-related IDT and would be closed with a TC 971 AC 504 EMPL-M.

  7. When you have determined the taxpayer is a victim of income related IDT, use a closing TC 971 AC 506 upon completion of all account actions when a Form 14039 or police report has not been received and any of the following conditions exist on the module in question:

    • Income earned by someone other than the valid taxpayer has resulted in a subsequent AUR or Exam assessment.

    • Income earned by someone other than the valid taxpayer has resulted in an ASFR, Exam SFR, or unfiled return refund hold issue.

    • The income earned by someone other than the valid taxpayer has not yet resulted in an impact to tax administration and there is an invalid return present.

      Reminder:

      When there is a previous TC 971 AC 501/504 for the tax year in question, the case cannot be closed with a TC 971 AC 506, because the taxpayer previously identified the IDT issue.

  8. Proceed to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for additional processing guidance.

  9. When you are unable to make a determination regarding income related IDT using the information provided by the taxpayer and internal sources researched, request clarification of the income earned. See IRM 25.23.4.18.2, Requests for Additional Information(Telephone and/or Written).

  10. If, after consideration of all information available, you determine the taxpayer is not impacted by income related IDT or refund related IDT, see IRM 25.23.2.6.6.2, No Identity Theft (NOIDT) Determinations - TC 972 AC 522 NOIDT.

Statute Processing Considerations

  1. The following subsections provide guidance to process identity theft cases when there are statute related issues to be considered.

Determining When Specific Year Account Information Must Be Moved

  1. Use the guidelines in the following subsections when determining whether posted tax account information for a particular year must be moved using Form 12810, Account Transfer Request Checklist.

    Note:

    These guidelines are applicable only if you are having to consider whether you should move posted tax data, e.g., tax, credits, refunds. On the other hand, if, as an example, the only"incorrect" transaction posted is a TC 976 belonging to another taxpayer, you may be required to follow the requirement to "move" the TC 976. Moving the TC 976 would involve inputting a TC 971 AC 002 and taking any necessary action to ensure the posting of the TC 976 tax information on the appropriate TIN.

Collection Statute Expiration Date Expired or Imminent
  1. The following guidance is applicable for all tax-related identity theft categories, i.e., IDT(X) and IDS(X).

  2. Stolen identity cases are exempt from normal statute processing. To that end, IDT cases do not truly have a CSED. Any cases received with the statement "Exception IDT1/IDS1 - Identity Theft Account" or Exception IDT3/IDS3 - Identity Theft Account, etc., written in the remarks field of the Form 12810, Account Transfer Request Checklist, are to be processed.

Identity Theft Allegations on Tax Year 2009 and Prior
  1. Taxpayers may claim identity theft on tax years 2009 and prior in the following scenarios:

    1. First time filer and current year refund was offset to a prior year

    2. Taxpayer was a minor in the tax year(s) in question

    3. Current year refund was offset due to a prior year assessment

  2. Research the accounts to determine whether the taxpayer is a victim of IDT. Although IRPTR data may not be available, other information may be available to assist with the determination, such as RGS/CEAS RTF data or AUR data (CP 2000). IRPTR data for more current years may assist as well.

    Example:

    The taxpayer claims he/she did not file a return for 2004; he/she was not required to file. In researching IRPTR for more current years, it is determined that multiple people are using the SSN for employment purposes. There are IRP documents for the taxpayer which confirms the taxpayer does not have a filing requirement. There is a high likelihood the same scenario applies for the tax year in question.

    Example:

    The taxpayer claims he/she was incarcerated. If no information can be obtained using CC FTBOL, request verification from the taxpayer.

    1. Research AMS for the CP 2000 or RGS for the RTF data to determine the information filed on the return in question. Research CC IRPTR for available years to determine if the taxpayer had a filing requirement in other years.

    2. Review AMS, CEAS, or the AUR system for taxpayer interaction with the Service, (i.e., telephone history).

    3. Research the age of the taxpayer and prior filing history.

    4. Ask for additional information that would assist with the determination, if necessary.

    5. If you are unable to obtain additional information but the identity theft allegation can be verified, allow the claim.

    Reminder:

    If additional information is needed to verify the IDT allegation, attempt to call the taxpayer if a contact number is available.

    Note:

    If IRPTR information is unavailable and the income in question is wages, there is no requirement to complete Form 9409, IRS/SSA Wages Worksheet.

  3. In cases where a taxpayer is alleging IDT and the CSED has expired; do not request the return be moved to an IRSN. These types of cases can be identified by reviewing the CSED expiration date and a TC 608 will be on the account. Accounting will not move these accounts because the CSED expired. There should be no impact to the taxpayer.

  4. In situations where there is an impact, (i.e., a current year refund was offset to a prior year), a TC 608 is on the account and the IDT allegation has been confirmed, see IRM 25.23.4.10.11.1, Identity Theft with Tax Offsets, (4) for applicable procedures. The refund will create a balance owed on the account, and the TC 608 will reset systemically.

  5. When Notices of Federal Lien (NFTL) are filed on accounts, the Service does not notify the credit bureaus. The credit bureaus research and place lien information on taxpayer credit reports.

  6. When a CSED expires, liens are automatically released. The Service is not required to report to the credit bureaus when liens are released. A Form 1099-C, Cancellation of Debt, will not be issued to the taxpayer in this situation.

    Note:

    If the taxpayer requests the NFTL be withdrawn, see paragraph (16) of IRM 25.23.10.7.2.3, Processing Identity Theft Correspondence.

  7. In situations where a taxpayer is claiming IDT on a year where the CSED has expired, research the account to make the determination. If IDT is confirmed, do not adjust the account unless there are payments or offsets that need to be refunded to the valid taxpayer. Input a history item on ENMOD to reflect the IDT indicator as required per IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501. Document actions taken in a CIS case note.

  8. If the taxpayer’s correspondence indicates he/she is impacted due to a Notice of Federal Tax Lien (NFTL), see IRM 25.23.4.12.2, Collection Activity - Form 13794 Additional Actions Required - Lien, for additional information.

Tax Year Account Move Conditions - Applicable for IDT(X) and IDS(X) Cases
  1. Tax account information should be moved when the Assessment Statute Expiration Date (ASED) is imminent or expired and any of the following conditions are met:

    Reminder:

    If the ASED is expired or imminent on a tax return to be reprocessed, NEVER abate tax on the "from" account until the reprocessing is complete and the tax has posted. Suspend the case to Statute if a return needs to be reprocessed and the ASED has expired or is imminent, per IRM 21.5.2.4.23.4, Statute Imminent Documents.

    Caution:

    The ASED does not apply on a case that has been determined a nullity. The return must be considered valid in order for the ASED to apply. Refer to IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, paragraph (3)(b),for additional information.

    • The TIN owner has also filed a return for the same tax year and the tax return amounts have been combined/adjusted. In this case it is necessary to keep the correct taxpayer’s information on the account and move off the incorrect taxpayer’s information.

       

      Note:

      This bullet is referring to tax years in which the correct taxpayer's and the incorrect taxpayer's tax account information items have been "mixed." " Mixed" here means that the income amounts were combined and the tax and any credits were adjusted if necessary.

    • There is a "-C" freeze on the account. A "-C" freeze indicates the taxpayer is/was in a combat zone and the time period for filing a return for that tax year may have been extended.

       

      Caution:

      Combat Zone (CZ) accounts, identified by a -C freeze, indicate a taxpayer who is or was serving in a designated combat zone area. NOTE: The -C freeze stays on the account even after the taxpayer is no longer in the CZ. When working an account that contains a -C freeze, additional research is required to determine the taxpayer's CZ status. Research CC IMFOLE for the Combat indicator on Line 11, to determine the correct action to take based on the following:
      If Combat indicator is "1", then the taxpayer is still serving in a combat zone. Any compliance activity such as assessing or collecting tax is prohibited. However, if the taxpayer has other issues or requests information, you may work these other issues and contact the taxpayer if needed.
      If Combat indicator is "2", then the taxpayer is no longer a combat zone participant. Follow normal procedures to work the case.

    • There is a balance owed on the tax year account.

    • The tax year account has an overpayment that must be refunded.

    Caution:

    If there is an indication another area is considering action on the tax year account, e.g., an open control by Exam, Automated Under Reporter (AUR), Collections, etc., contact that area. The tax year may need to be moved based on the action they are taking on the account. Document your contact in the CIS notes.

     
    If Then
    (1) None of the conditions in the bullet-list above are met. Proceed to IRM 25.23.4.9.1.3, Action Required if Not Moving Specific Year Account Information.
    (2) One or more of the conditions in the bullet-list above is/are met. Proceed to IRM 25.23.4.9.1.4, Moving Specific Year Account Information.

Action Required if Not Moving Specific Year Account Information
  1. Take the following actions when you have determined, per the subsections above, that it is not necessary to move posted tax account information. Unless specifically noted, the actions listed in this paragraph apply to IDT(X) and IDS(X) cases. The bullet items listed here are related to the actions required on the "IRSN" .

    • Refer the case to your Lead or designated individual for approval not to move the tax account information. The CSR/TE must input a case note of not moved or their determination prior to requesting approval. If approved, the Lead or designated individual must notate approval in the CIS Case Notes. The lead and/or manager cannot concur with a determination that is not posted on the case.

    • Establish a name line on the "to" account for the tax year not being moved. Include the name(s), filing status, and spouse's SSN (if applicable) as shown on the return.

    • Input a TC 971 AC 001 with the return received date on the "from" account to cross-reference to the "to" account. For NMRG cases the "from" account is the tax year on the other side of the No Merge, usually the IRSN.

    • After the name line has posted on the "to" account, input a TC 971 AC 017 on the "to" account to cross-reference to the "from" account. Use the received date of the return not being moved.

    • For MXEN, IDT(X),IDS(X), SCRM, and SSA2 cases, enter the following CIS case note, filling in the applicable year: "Tax Year YYYY not filed by TP. See TC 971 AC 001 X-Ref" .

      Note:

      If reactivation requires obtaining microfilm, a note on CIS is sufficient indicating the location of the cross-reference tax year.

     

    Caution:

    The ASED does not apply on a case that has been determined a nullity. The return must be considered valid in order for the ASED to apply. Refer to paragraph (3)(b) of IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitation Period, for additional information. If the return is determined to be valid, an IRSN should be obtained in order to process the return for Taxpayer B.

  2. Take the following additional actions for the tax year(s) that will remain posted on the account. These additional actions listed in this paragraph apply ONLY to MXEN, IDT(X), IDS(X), SCRM, SSA2 cases. The bullet items listed here are related to the actions required on the "SSN" .

    • For the "from" tax year(s) account(s), the tax year(s) account(s) not being moved, change the name line on the tax year(s) to: "NOT FILED] NAMC" . "NAMC" here represents the name control of the taxpayer who owns the SSN. You will type in the name control of the SSN owner instead of typing in "NAMC" . Also update the address to the most current address, if applicable.

    • If the return that posted to the Common Number, on the "from" account tax year has Self-Employment (SE) income, input CRN 878/CRN 895 and/or CRN 879/CRN 896 to zero out primary SE and Medicare income. Input CRN 892/CRN 899 to zero out the primary and secondary tip income.

    • If an overpayment on the tax year account not being moved is over one-year old, move such overpayment to excess collections.

      Note:

      If the taxpayer has a valid TIN and a refund should be issued, the tax year account must be moved to the taxpayer's valid TIN.

    • Any overpayment that has been offset to a Bureau of Fiscal Services debt must be reversed using HC 4. If the overpayment is over one year old, move it to excess collections. A letter must also be sent to the taxpayer who has the FMS debt, notifying them of the reversal. If the BFS offset is over 6 years old, refer to IRM 21.4.6.4.2.12, TOP Offsets Involving ID Theft.

    • Reverse any IRS offsets. If the overpayment is over one-year old, move the overpayment to excess collections. A letter should be sent to the SSN owner informing them of the overpayment reversal.

    • If adjusting 2008 and FTHBC was claimed by the invalid taxpayer, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture Amount, to update the IMFOLF information.

Moving Specific Year Account Information
  1. If there are 180 or more days remaining before the ASED expires, reprocess the return.

  2. If there are less than 180 days remaining before the ASED expires, refer the return to Statute for a prompt assessment.

    Caution:

    The ASED does not apply on a case that has been determined a nullity. The return must be considered valid in order for the ASED to apply. Refer to paragraph (3) (b) of IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitations Period, for additional information.

     

    Reminder:

    If the tax year account is within 180 days of the ASED, DO NOT abate tax on the "from" account prior to the tax being posted on the "to" account. Once the return has been reprocessed and the tax information has posted, or a prompt assessment has been made on the "to" account, the "from" account may be backed off to the correct amount.

    Reminder:

    If the ASED is expired, NEVER abate tax on an account and attempt to reprocess the return.

  3. If moving posted tax account information is an issue, the ASED is expired for the tax year(s) at issue, and any of the conditions are met, as applicable, in IRM 25.23.4.9.1.2, Tax Year Account Move Conditions-Applicable for IDT(X) and IDS(X) Cases, or IRM 21.6.2.4.6, Tax Year Account Move Conditions-Applicable for MXEN, SCRM, SSA2 and NOMRG Cases, take action to move the tax account information as appropriate. If applicable, initiate a manual account transfer using Form 12810, Account Transfer Request Checklist.

    Note:

    After the tax account information has posted, input the applicable item reference numbers (IRN) on the "to" account (e.g., IRN 888, 896).

     

    Note:

    For general information when the tax year account must be transferred via Form 12810 per the guidelines above, see IRM 25.6.1.9.9.3, Correct Records on Expired Statute Periods. Also see bullet items below to expedite the processing and/or prevent delays of Form 12810.

    Reminder:

    When the tax year account must be transferred via Form 12810, the tax year account must be in debit or zero balance. Accounting will reject any requests where the tax year account is showing or will show, once the Form 12810 transfer has been completed, a credit balance. Credit balances must be resolved prior to forwarding Form 12810, whether as a refund to the correct taxpayer, if allowable, or as a transfer to Excess Collections. Make sure the entity information for the IRSN account has posted and all freeze conditions are resolved prior to sending the Form 12810 to Accounting.

     

    Reminder:

    If all other statute expiration dates have expired and there is no indication of activity or pending activity on the tax year account, do not move an incorrectly posted tax year if the Collection Statute Expiration Date (CSED) is expired or has less than 10 months remaining before it expires. No additional account moving action is required on these tax years.

    See the following IRM sections for proper processing of Form 12810:
    • Form 12810 must be processed within a six-day time frame per IRM 3.17.21.7(1), Master File Account Transfers-Out.

      Reminder:

      Ensure you submit Form 12810 to the appropriate accounting function via EE-Fax or email.

    • Any forms that need to be rejected by SP will be sent back to the originator using an electronic format, by email or EE-Fax. This will prevent unnecessary delays, per IRM 3.17.21.7.1(1), Processing Account Transfers to the Master File (IMF/BMF).

    • The employee assigned to complete the transfer needs to open a control base, using category IRRQ, when it is determined that the transfer request will be processed, per IRM 3.17.21.7.1(8), Processing Account Transfers to the Master File (IMF/BMF).

Addressing Barred Assessments on Identity Theft (IDT) Cases

  1. This section provides information on the identification of a barred assessment and initial case actions to be taken prior to adjusting the account when there is IDT involvement.

  2. A "barred assessment" occurs when a legal tax assessment is not made within the prescribed period for assessment. The prescribed period for assessment can be identified by calculating the Assessment Statute Expiration Date (ASED) as three years from the IRS received date of the return in question. The ASED of each return on the module must be considered separately. A barred assessment is not determined by a refund or balance due, but the inability to assess tax prior to the expiration of the ASED for the return being considered.
    Complete thorough research to ensure there is no alternative means of assessing the tax (e.g., extension to file, extended ASED, Form 12810) before determining the assessment is barred. Refer to IRM 25.6.1.13.2.4, Identifying Barred Statute Cases, for examples of "barred assessments" and tolerance amounts.

  3. Compare the total tax currently on the module to the amount of tax reported on the return being considered. If the total tax currently on the module is more than the tax reported on the return being considered, the assessment is not barred. Refer to the following options:

    1. Invalid/Valid Nullity Case - When the ASED for the valid return has not expired, there is no barred assessment. Follow normal streamline procedures. See IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases.

    2. Invalid/Valid Nullity Case - When the ASED for the valid return has expired, following normal streamline procedures will create a barred assessment if the valid return reports an amount of tax greater than zero. Continue with barred statute procedures.

    3. Invalid/Valid IRSN Case - When the ASED for the valid return has not expired and the ASED for the invalid return reporting verifiable income has expired, there is no barred assessment. Follow procedures in IRM 25.23.4.9.1, Determining When Specific Year Account Information Must Be Moved.

    4. Invalid/Valid IRSN Case - When the ASEDs for both returns have expired, the tax on the valid return cannot be assessed. Follow procedures in IRM 25.23.4.9.1, Determining When Specific Year Account Information Must Be Moved, to address the invalid return. Continue with barred statute procedures to process the valid return.

    5. One Return IRSN Case - When the ASED has expired and the tax module has not been abated, follow procedures in IRM 25.23.4.9.1, Determining When Specific Year Account Information Must Be Moved, to address the invalid return. If the tax has been abated, this is a barred assessment due to the erroneous abatement. Continue with barred statute procedures.

  4. The following procedures should only be used for cases identified as a barred assessment or erroneous abatement. For detailed case examples, see the Barred Assessment Checklist job aid on the IDTVA Hub. Before proceeding, perform the following actions:

    1. Scan or attach the valid return to the CIS case.

    2. Utilize the IDTVA Barred Checklist Referral to Statute located on the IDTVA Hub under "Tools & Job Aids" for guidance on account actions.

    3. Print and retain a copy of any forms and/or worksheets (e.g., Form 1040, Form 5792, Form 8765, Form 12356, penalty calculator, or COMPA) used in the account adjustment(s). The documents will be included with the packet routed to statute.

  5. Use the chart below to determine the applicable initial case actions that need to be taken to correct the account.

    If And Then
    (1) TC 150 posted and meets nullity criteria, Valid return received has posted as TC 976,
    • Update the ASED even though valid return ASED has expired.

    • Continue to paragraph (6).

    (2) TC 150 posted and meets nullity criteria, Valid return received but not posted as TC 976 (e.g., TC 977, TPRQ, paper return, transcript, TC 599 AC 089).

    Note:

    TC 599 CC 089 determines ASED.

    • Update the ASED even though valid return ASED has expired.

    • Send valid return to post as TC 976.

    • Suspend case until TC 976 is posted.

    • Continue to paragraph (6).

    (3) TC 150 posted and meets nullity criteria and a good address was located, TC 610 payment without an extension to file, or TRDBV rejected return(s) matches nullity return(s) only, and/or no valid return has been received.

    Note:

    TC 610 payment determines ASED. If multiple TC 610 payments present, the last one determines ASED.

    • Send Letter 5064C requesting the return.

    • Suspend the case for 40 days (70 days if overseas).

    • Once return is received, follow 1b in chart using TC 610 payment date as return received date.

    (4) TC 150 posted and meets nullity criteria and there is no good address or response received from TP and the TC 610 payment is the amount that is barred, TC 610 payment without an extension to file, or TRDBV rejected return(s) matches nullity return(s) only, and/or no valid return has been received.

    Note:

    TC 610 payment determines ASED. If multiple TC 610 payments present, the last one determines ASED.

    Continue to paragraph (6).
    (5) TC 150 posted and meets nullity criteria and a good address was located, TC 610 payment with an extension to file, or a TRDBV rejected return(s) does not match a nullity return(s) and/or no valid return has been received,
    • Send Letter 5064C requesting the return.

    • Suspend the case for 40 days (70 days if overseas).

    (6) TC 150 posted and meets nullity criteria and the return is received without a statement the taxpayer had previously filed, TC 610 payment with an extension to file, or a TRDBV rejected return(s) does not match a nullity return(s) and/or no valid return has been received,
    • Change TC 610 payment to TC 670 using the same transaction date and a TC 570.

    • Follow IRM 25.23.4.6.5.2, Unprocessed Documents, the account is no longer considered a barred assessment.

    • The received date and new ASED are determined by the received date in response to the Letter 5064C.

    (7) TC 150 posted and meets nullity criteria and the return is received with a statement the taxpayer has previously filed, TC 610 payment with an extension to file, or a TRDBV rejected return(s) does not match a nullity return(s) and/or no valid return has been received,
    • Do not change the TC 610 payment to a TC 670 payment.

    • Continue to paragraph (6).

    (8) TC 150 posted and meets nullity criteria and there is no good address or response received, TC 610 payment with an extension to file, or a TRDBV rejected return(s) does not match a nullity return(s) and/or no valid return has been received,
    • Change TC 610 payments to TC 670 using the same transaction date and a TC 570.

    • Follow IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases, for identity theft actions; the account is no longer considered a barred assessment.

    (9) TC 150 is a nullity, TC 976 is valid and account was previously adjusted for valid return, (a). The adjustment went unpostable
    (b). Account backed out (e.g., IRN 871 procedures, RIVO) including prior IDT adjustments(s),
    • Do not refer case back to person that previously worked the case

    • Update the ASED even though valid return ASED has expired

    • Continue to paragraph (6)

    (10) No TC 150 posted, and/or an MFT 32 and/or a GUF Voided/Deleted return is present that meets nullity criteria, (a). MFT32 or GUF Voided/Deleted return (different DLN) is valid
    (b). Valid return was sent to reprocess to a different TIN or tax period (e.g., IRSN),
    • Prepare and send to SP (a dummy return for processing with zero tax liability complete with entity and exemption information)

    • Write in red across the top of Form 1040 "Dummy return prepared by IDTVA to post TC 150 for $.00," "Use long entity" and "Do NOT "G" code return"

    • Use original return received date

    • Suspend case until TC 150 has posted.

    • Continue to paragraph (6)

    (11) TC 150 is valid with RIVO indicators, RIVO backed out the valid return with or without IDT involvement,
    • Refer to IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO Involvement, for account actions

  6. When the valid taxpayer’s return claims a balance due, the employee must determine the amount of penalty and/or interest that cannot be assessed. This applies whether the return was timely filed or late, regardless of whether the balance was paid in full, partially paid, or remains unpaid. The amount of the barred assessment includes penalties and interest when determining the total amount lost to the IRS. Applicable penalties including Estimated Tax (ES) penalty, Failure to File (FTF) penalty, and Failure to Pay (FTP) penalty as well as interest are calculated to the ASED of the return being considered when determining the amount of the barred assessment.

    Caution:

    The (IRN) 871 procedures should not be used when the ASED has expired.

    Example:

    A 2012 valid return was received 09262013 with a balance due. No extension or history of an extension was present, and no payments were made on the account. Penalties should be calculated as follows:

    • FTF assessed for a maximum of 5 months

    • FTP calculated from 04152013 to 09262016 (ASED expiration date)

    • Interest calculated on unpaid balance plus FTF from 04152013 to 09262016 (ASED expiration date)

  7. After all initial case actions have been taken, continue to IRM 25.23.4.9.2.1, Adjusting Accounts with Barred Assessments, for adjustment and closing actions.

    Note:

    Employees resolving a barred assessment with compliance involvement will refer to IRM 25.23.4.9.2.2, Resolving a Barred Assessment with Compliance Issues (IDTVA Specialty Functions Only).

Adjusting Accounts with Barred Assessments
  1. All required actions from previous IRM guidance must be taken before adjusting the account.

    Reminder:

    Identity theft case actions and coding still apply when resolving a barred assessment account (e.g., RC 139, offsets, IDT indicators, secondary taxpayer).

  2. When the valid taxpayer files a return, the account must be adjusted to reflect the return information as allowable. Follow procedures below when inputting the adjustment to the valid return figures. DO NOT back out the account. The current tax amount must remain on the account to protect that portion of the otherwise barred tax and will be accounted for when figuring the adjustment.

    1. Math verify the valid return. Follow procedures in IRM 21.5.4, General Math Error Procedures, to identify math errors and determine if the adjustment will require initial math error actions.

    2. If the return does not meet math error criteria but reflects information that is not allowable based on law or regulation, follow procedures in IRM 21.5.3.4.6, No Consideration and Disallowance of Claims and Amended Returns, to determine if the corrective action requires disallowance, partial disallowance, or no consideration actions.

    3. Recompute tax and/or credits, if necessary.

    4. Determine the amount of tax that cannot be assessed.

    5. Input the adjustment to the return figures, as allowable. Use HC 4. Include the appropriate Blocking Series (BS) if setting a math error or partially disallowing the claim. If fully disallowing the claim, input a separate TC 290.00 with the appropriate blocking series.

    6. If the valid return is reporting a balance due and was not fully paid by the Return Due Date (RDD), IRN 871, PC 2 procedures cannot be used. As the ASED is expired, in this case you cannot assess any penalties with any amounts other than .00 (e.g., TC 160 .00, TC 270 .00, TC 170 .00, etc.).

    7. If following math error procedures, no consideration procedures, or disallowing in full or part, issue the appropriate letter to provide an explanation of the changes made. Include appeal rights, when applicable.

    8. When the valid return is reporting a refund that is allowable and tax cannot be assessed due to the ASED expiration, the result of the adjustment input will be a credit on the module that is more than what the taxpayer is entitled to receive. Issue a manual refund for the amount of the allowable refund, plus applicable credit interest when applicable.

    9. Use Form 8758 to apply the credit remaining on the account to the Excess Collection File. The amount of refundable credits applied should equal the amount of tax that was barred from assessment.

      Note:

      Refer to IRM 25.6.1.7.3.1, Transferring Credit to XSF, for additional guidance. Refer to IRM 21.5.6.4.8, -D Freeze, for guidance on how to resolve -D freeze accounts.

    10. Follow normal statute procedures for determining if payments are refundable. See IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, for more information.

  3. Procedures have been established to allow for tax posted to a module from a invalid return to be used to prevent or reduce the amount of a barred assessment under IRC 6201(a)(1).

  4. When the valid taxpayer’s return is reporting tax in an amount that is more than zero and the ASED for the valid return has expired, follow the procedures below to protect the assessment, when possible.

    1. When the TC 150 amount is less than the amount of tax reported on the valid return, do not back out the figures for the invalid return. Adjust the account to the figures on the valid return, as allowable. This results in a barred assessment that is less than it would be if normal adjustment procedures were followed. See Example 1: Barred Assessment.

      Example:

      #1 The TC 150 return for TY 2012 is determined to be a nullity. The valid taxpayer filed a refund return reporting tax of $5,000 and withholding of $7,500. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $3,000, and withholding of $5,000. The valid taxpayer files their original return that posts as a TC 976. The return is not processed prior to the expiration of the ASED. The tax on the account is less than the amount of tax reported on the valid taxpayer’s return. The result is a barred assessment for the amount that cannot be assessed "$2,000" .

    2. When the TC 150 amount of tax is more than the amount of tax reported on the valid return, do not back out the figures on invalid return. Adjust the account to the figures on the valid return, as allowable. This will prevent a barred assessment. See Example 2: Not a Barred Assessment.

      Example:

      #2 The TC 150 return for TY 2013 is determined to be a nullity. The valid taxpayer filed a refund return reporting tax of $1,000 and withholding of $1,500. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $2,000, and withholding of $3,500. The valid taxpayer files their original return that posts as a TC 976. The return is not processed prior to the expiration of the ASED.
      The tax on the account is more than the amount of tax reported on the valid taxpayer’s return. The account can be adjusted to the valid return figures to prevent a barred assessment.

  5. Follow IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, for remaining identity theft actions.

  6. After adjusting the account and resolving the identity theft issue, the barred assessment will be referred to your local statute unit per IRM 25.23.2.5.4, Barred Statutes, using the following guidelines.

    1. Open a monitoring control base per IRM 25.23.4.3.1, CIS and IDRS Case Controls, until all adjustments have posted to ensure the IDT issue has been fully resolved.

    2. Attach a completed copy of the IDTVA Barred Checklist Referral to Statute to the CIS case.

    3. Prepare the packet for referral to statute and complete the following actions:

    1. Print the valid return, CIS case with all notes, penalty and interest computations, TXMODA including case status history, forms used in case actions (e.g., 5792, 12356), and IDTVA Barred Checklist Referral to Statute.

    2. Prepare Form 3210, Document Transmittal, to route the entire package to your local statute unit. Include in the remarks section "ID Theft Barred Assessment amount $XX.XX" and "ID Theft issue reported" IRM 25.6.1.13.2.1, Barred Statute Report (Form 9355/3999).

    3. Leave CIS case note with same remarks as the Form 3210, route package to your local statute area, and close the CIS case if all issues have been addressed.

Resolving a Barred Assessment with Compliance Issues (IDTVA Specialty Functions Only)
  1. This section of the IRM is for employees resolving a barred assessment on an identity theft case with compliance involvement (IDTVA Specialty Functions Only). Refer to the instructions in IRM 25.23.4.9.2, Addressing Barred Assessments on Identity Theft (IDT) Cases, and IRM 25.23.4.9.2.1, Adjusting Accounts with Barred Assessments, in addition to the instructions within this IRM section.

  2. Procedures have been established to allow for tax posted to a module from a nullity return and/or additional valid assessments to be used to prevent or reduce the amount of a barred assessment.

  3. A statutory notice of deficiency may have been issued to assess and collect income tax, estate tax, gift tax, and certain excise and employment tax deficiencies, per IRM 25.6.1.9.6.2, Statutory Notice of Deficiency (90 Day Letter). The determination whether a Compliance assessment can be used to protect the account from containing a barred assessment depends upon the issuance of the notice of deficiency. Use the table below to determine if tax from a compliance assessment can be used to protect the account from being considered barred.

    If And Then
    (1) Notice of Deficiency was issued
    • Was sent to the valid taxpayer’s address of record at the time of issuance, and

    • Meets all required criteria for notice of deficiency (e.g., tax and penalty calculations, waiver, taxpayer rights) and

    • The valid Compliance assessment can be used to protect the account from being considered barred.

    • Continue to paragraph (4)

    (2) Notice of Deficiency was issued
    • Was sent to an address other than the valid taxpayer’s address of record at the time of issuance, or

    • Does not meet all required criteria for notice of deficiency (e.g., tax and penalty calculations, waiver, taxpayer rights) and

    • The invalid Compliance assessment cannot be used to protect the account from being considered barred and must be abated.

    • Continue to paragraph (4)

  4. Once you have determined if the Compliance assessment is valid or invalid, follow the table below to decide if there is a barred assessment and what actions to take.

    Note:

    Total tax equals the tax assessed from the original TC 150 return plus any additional TC 290/300 assessments minus any additional TC 291/301 abatements.

    Caution:

    To protect the account from being barred, DO NOT back out the account, if the taxpayer’s valid return reports a tax amount and there is tax on the current account module. The current tax amount must remain on the account to protect that portion of the otherwise barred tax and will be accounted for when figuring the adjustment.

    If And Then
    (1) The Compliance assessment is valid and there is no barred assessment, The total tax on the tax account is greater than or equal to the tax on the taxpayer’s valid return, Adjust the account to the figures on the valid return, as allowable, following your functional IRM guidance for IDTVA cases involving Compliance issues. See IRM 25.23.10, Compliance Identity Theft Case Processing.
    See Example 2 below.
    (2) The Compliance assessment is valid and there is no barred assessment, The total tax on the tax account is less than the tax on the taxpayer’s valid return,
    • Adjust the account to the figures on the valid return, as allowable, following IRM 25.23.4.9.2.1, Adjusting Accounts with Barred Assessments.

    • The barred tax is the difference between the tax on the taxpayer’s valid return and the total tax on the account.

    (3) The Compliance assessment is invalid and there is no barred assessment, The total tax on the tax account, not including the Compliance assessment, is greater than or equal to the tax on the taxpayer’s valid return, Adjust the account to the figures on the valid return, as allowable.
    See Example 1 below.
    (4) The Compliance assessment is invalid and there is a barred assessment, The total tax on the account, not including the Compliance assessment, is less than the tax on the taxpayer’s valid return,
    • Adjust the account to the figures on the valid return, as allowable, following IRM 25.23.4.9.2.1, Adjusting Accounts with Barred Assessments.

    • The barred tax is the difference between the tax on the taxpayer’s valid return and the total tax on the tax account.


    See Example 3 below.

  5. For detailed case examples, see the IDTVA Specialty Barred Assessment Case Examples job aid on the IDTVA Hub.

    Example:

    #1 - Not a Barred Assessment (Invalid Compliance Assessment)
    The TC 150 return for TY 2013 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $2,000 and withholding of $3,000. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $5,000, withholding of $7,000, and AOTC of $2,000. A refund of $4,000 was issued to the invalid taxpayer by direct deposit. A CP 2000 was issued to an address other than the valid taxpayer’s last known address proposing a tax increase of $8,000, an increase to withholding of $1,500, and removal of AOTC. No response was received, and a default assessment posted. The taxpayer files Form 14039 stating the refund from the current year return was applied to a balance owed for TY 2013. The taxpayer reports someone else is earning income under their SSN and states they mailed their return in January 2015. Research confirms the taxpayer is a victim of income and refund related identity theft.
    The tax assessed based on the CP 2000 cannot be considered when determining if there is a barred assessment. Because of the TC 150 tax of $5,000 is more than the tax of $2,000 reported by the valid taxpayer, the account will be adjusted to the valid taxpayer’s return figures, preventing a barred assessment.

    Example:

    #2 - Not a Barred Assessment (Valid Compliance Assessment)
    The TC 150 return for TY 2011 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $8,000 and withholding of $2,000. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $1,000 ACTC of 3,000, and EIC of $5,000. Exam is holding the refund pending verification of relationship and residence for the dependents listed. A statutory notice is issued to the valid taxpayer’s address. No response was received, and the account is adjusted to remove the dependents and related credits. The result is an increase in tax of $10,000. The valid taxpayer files their original return that posts as a TC 976. The case is routed to Exam as audit reconsideration. After contact with taxpayer, the taxpayer files Form 14039 to report someone else filed the first return received for TY 2011. The case is referred to IDTVA.
    The tax assessed based on the Exam audit can be considered when determining if there is a barred assessment, because the notice of deficiency was issued to the valid taxpayer’s last known address. The TC 150 amount plus the TC 300 amount totaling $11,000 is more than the amount of tax reported on the valid taxpayer’s return. The account will be adjusted to the valid taxpayer’s return figures, preventing a barred assessment.

    Example:

    #3 - Partially Barred Assessment - (Invalid Compliance Assessment)
    The TC 150 return for TY 2012 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $4,000 and withholding of $5,000. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $3,000, and withholding of $5,000. A CP 2000 proposing a tax increase of $9,500 based on non-employee compensation is issued to an address other than the valid taxpayer’s last known address. No response was received, and the assessment was made. The valid taxpayer files their original return that posts as a TC 976. The return is reporting self-employment income, total tax of $6,000, estimated tax payments of $4,000, and a balance owed of $2,000. The case is routed to AUR for audit reconsideration. After contact with the taxpayer, the taxpayer files Form 14039 to report someone else filed the first return received for TY 2012. The case is referred to IDTVA.
    The tax assessed based on the CP 2000 cannot be considered when determining if there is a barred assessment, because the notice of deficiency was issued to an address other than the valid taxpayer’s last known address. The TC 150 amount is less than the amount reported on the valid taxpayer’s return. The modules are adjusted to the taxpayer’s return figures. This results in a barred assessment of $3,000 plus applicable penalties and interest.

    Example:

    #4 - Erroneous Abatement
    The timely filed TC 150 return for TY 2014 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $.00 and withholding of $2,500. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $5,000, and withholding of $6,000. A CP 2000 proposing a tax increase of $2,000 based on unreported income is issued to the valid taxpayer’s last know address. No response was received, and the assessment was made. The valid taxpayer files their original return with Form 14039. The return posts as a TC 976. The TC 150 return is determined to be a nullity, and an adjustment to fully back out the return figures is input. After being selected for quality review, it is determined the nullity procedures followed were incorrect
    The ASED for the TC 150 return is expired, and the tax originally assessed was abated in error. The return is reporting verifiable income, requiring IRSN procedures to be followed. The return cannot be processed to an IRSN due to the expired ASED creating a barred assessment.

Resolving Identity Theft (IDT) Cases

  1. Review the following subsection titles to identify your case scenario. Follow the guidance to resolve your case.

    • Invalid Return/Valid Return - No Lost Refund

    • Invalid Return/Valid Return - Lost Refund

    • Valid Return/Invalid Return

    • Two or More Invalid Returns (No Valid Return) - No Lost Refund

    • Two or More Invalid Returns (No Valid Return) - Lost Refund

    • One Invalid Return - No Lost Refund

    • One Invalid Return - Lost Refund

    • Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement - Resolution Tables

    • IRSN Required for Identity Theft (IDT) Return

    • Income Related Identity Theft (IDT)

    • Identity Theft (IDT) with Offsets

    • Identity Theft (IDT) and Restitution

    • Amended Returns and Identity Theft (IDT)

    • Identity Theft (IDT) - Previous Action

  2. If the victim is a secondary filer on a joint return:

    • Input TC 594 CC 084 on the secondary TIN to cross reference the primary TIN if one has not systemically generated already.

    • Reverse the TC 971 AC 522, if one is present, with MISC Code "OTHER" on the primary TIN/joint account only when the primary taxpayer wasn’t a victim.

  3. When all of the following conditions are met, the identity theft issue does not affect tax administration. The case will be closed with a TC 971 AC 504 upon completion of any actions necessary to resolve the case:

    • The only invalid return(s) on the module are rejected attempts to file (no invalid returns accepted)

    • Form 14039 was received

      Exception:

      If the account meets these criteria and the taxpayer is a victim of income related identity theft, see IRM 25.23.10.3, Income or Employment Related IDT, for applicable procedures.

  4. Determine whether the account will be in a balance due status after adjustment action posts. If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed. Take action to resume collection activity when appropriate. Refer to IRM 25.23.4.12.3, Collection Activity - Resume Collection Actions, for guidance.

Invalid Return/Valid Return - No Lost Refund

  1. The following procedures must be used when the IDT return posted first and the refund was NOT lost:

    1. When resolving current year cases, input TC 971 AC 850 when the IDT return requested a Direct Deposit that was not issued.

    2. Adjust the account to reflect the valid return data using the valid return as the source document to release the -A freeze. Use Blocking Series 00 and Reason Code 139. Notate in remarks "Identity Theft" or similar remarks. If working on CIS, the adjustment is still input using Blocking Series 00 since the valid return is considered the original return; however, it should be input as a NSD.

    3. If the valid return was received after the return due date, refer to IRM 20.2.4.5, Unprocessible Returns, and IRM 20.2.4.5.1, Updating the RPD on Unprocessible Returns, for additional guidance. For the purpose of updating the RPD, this IRM section will be used for official guidance.

    4. If the valid return has a balance due and FTP is required, refer IRM 20.1.2.2.6.3, Wrong Return Posted First, for additional guidance.

    5. If an EITC recertification indicator was placed on account because of an IDT return, reverse the indicator. Refer to IRM 4.19.14.7 (6), Recertification, for additional guidance.

    6. Use Priority Code 1 if the return requires DIF scoring.

    7. Use the appropriate HC to prevent issuing erroneous notices and/or an erroneous refund. You must use HC 4 when a manual refund is required or for any other condition that requires the credit to be held (e.g., a missing signature on the valid return). See paragraph (4) of IRM 25.23.4.6.5.3, Missing Information, for additional guidance.

    8. Use a posting delay of 2 cycles on the adjustment if the IDT return requested a direct deposit and the refund was not issued.

    9. See (2) below for ACA consideration if adjusting the 2014 tax year or later.

    10. Address any incorrect Combat Zone changes made to the account if the valid taxpayer was in a Combat Zone. Combat Zone (CZ) accounts are identified by a -C freeze and indicate a taxpayer who is or was serving in a designated combat zone area. The -C freeze stays on the account even after the taxpayer is no longer in the CZ. When working an account that contains a -C freeze, additional research is required to determine the taxpayer's CZ status.

      1. Research CC IMFOLE for the Combat indicator on Line 11, to determine the correct action to take.

      2. If Combat indicator is "1," then the taxpayer is still serving in a combat zone. Any compliance activity such as assessing or collecting tax is prohibited. However, if the taxpayer has other issues or requests information, you may work these other issues and contact the taxpayer, if needed.

      3. If Combat indicator is "2," then the taxpayer is no longer a combat zone participant. Follow normal procedures to work the case.

    11. If the IDT year is 2008 and First Time Home Buyer Credit (FTHBC) was received from the TC 150, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture Amount.

    12. Adjust the Assessment Statute Expiration Date (ASED), if necessary. Notate on CIS "DUP (DLN) (last 6 digits of the DLN xxxxx-x) becomes the original" or similar remarks.

    13. Correct the entity module to reflect the SSN owner’s address using information on CIS, AMS, and IDRS to determine the most current address.

    14. See the IDT closing letter chart in Exhibit 25.23.4-10, IDT Closing Letter Decision Chart, to determine which closing letter to send.

    15. Input the appropriate IDT Tracking Indicator Code, TC 971 AC 501 or TC 971 AC 506, on the entity module of the CN with the appropriate Posting Delay Code. The TRANS-DT will automatically populate with the input date. Enter the tax year at issue in the SECONDARY-DT field as MMDDYYYY where YYYY reflects the tax year in question. This date must not be later than the current date. Input "WI ITVAA MULTFL" or other appropriate Tax Administration Source Code in the MISC field.
      Other Tax Administration Source Codes available to be used when warranted are:

      NOFR
      INCMUL
      INCOME
      OTHER

       

      Caution:

      If ENMOD already reflects a TC 971 AC 501 with Tax Administration Source Code: INCOME, INCMUL, MULTFL, NOFR or OTHER for the same tax year, indicating taxpayer documents were filed, do NOT input a second code.

    16. If the valid return indicates election was made for the Presidential Election Campaign Fund (PECF) and the IDT return did not, then prepare a dummy Form 1040X. Refer to procedures in IRM 21.6.7.4.12, Presidential Election Campaign Fund (PECF).

    17. Forward the return to Examination for DIF scoring if it meets any of the criteria in IRM 21.5.2.4.23.6, Discriminant Index Function (DIF) SCORE or CLASSIFICATION "Send Return(s) to Examination for Review". DO NOT refer Forms 1040EZ.

    18. If the IDT Return does not meet criteria for treatment as a nullity, see IRM 25.23.4.10.9, IRSN Required for Identity Theft (IDT) Return, for guidance on additional actions required.

    19. If the IDT Return can be nullified, then refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, to ensure all actions have been taken, as applicable.

  2. For 2014 and later returns, correct the account to reflect provisions of the Affordable Care Act (ACA).

    1. Compute the Premium Tax Credit (PTC) and all related data elements. See IRM 21.6.3.4.2.12.4, Tools for Accessing ACA-Related Taxpayer Data, and IRM 21.6.3.4.2.12.7, Adjusting the Account.

    2. Determine the taxpayer’s liability for the Shared Responsibility Payment (SRP). See IRM 21.6.4.4.20.3, Shared Responsibility Payment Overview.

    3. Before finalizing your case, also refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, to ensure all actions have been taken, as applicable.

  3. If the valid taxpayer is due a refund, the refund should be systemically released unless an exception applies. See IRM 21.4.4.3 (3), Why Would a Manual Refund Be Needed?, for situations that may still require a manual refund. When it is necessary to issue a manual refund, HC 4 must be used. Refer to IRM 21.4.4.2, What is a Manual Refund?, and IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional guidance on issuing a manual refund.

    Note:

    If a manual refund is required and the return meets criteria for DIF scoring, the manual refund should be issued before the return has been DIF Scored.

    Exception:

    If the SSN owner (or the spouse of the SSN owner) filed a Form 8379, Injured Spouse Allocation, and your site does not work injured spouse cases do not attempt to issue a refund. Instead follow the instructions in (4) below.

  4. If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

  5. If the SSN owner (or the spouse of the SSN owner) filed an injured spouse claim, correct the account to reflect the valid return data and then refer the Debtor Master File Case (DMFC) to the specialty group to process the injured spouse claim:

    1. Follow all instructions in (1), (2) and (3) above except use HC 4 on the adjustment and/or use TC 570 on credit transfers to hold the overpayment.

    2. After inputting all account actions, close the CIS case.

    3. Open a new CIS case with Category Code "DMFC" . Assign the case to IDRS number located on the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP. For the required fields, input the Doc Type as "Injured Spouse Claim" , use Program and Function Code "ADJ-710-97140," "Priority 2" and reason "Form 8379 attached" .

      Reminder:

      If your site works both IDT case work and injured spouse case work, do not reassign the case. The case should be retained and worked within your site.

    4. Link the new CIS case to the closed CIS case.

Invalid Return/Valid Return - Lost Refund

  1. Follow the guidance above to adjust the account to reflect the valid return data.

  2. If a refund was issued on the CN to the filer of the TC 150 return, it must be moved to the 150 taxpayer’s IRSN if that return cannot be nullified. See IRM 21.5.2.4.23.10, Moving Refunds, for moving refund procedures.

  3. If a refund was issued on the CN to the filer of the TC 150 return and that return can be nullified, offset the lost refund (associated with the IDT return) to GL 1545. Refer to IRM 25.25.4.7, Reversing Identity Theft Lost Refunds, for additional guidance.

Valid Return/Invalid Return

  1. The following procedures must be used when the valid return posted first and the account has not been adjusted to the invalid return figures:

    1. Input TC 290 .00 with Blocking Series 05 and Reason Code 139 to release the -A freeze. No source document is needed as the valid return has already been processed. Notate in remarks "Identity Theft" or similar remarks.

    2. If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    3. Update the entity for the SSN owner if the original information has changed.

    4. See the IDT closing letter chart in Exhibit 25.23.4-10, IDT Closing Letter Decision Chart, to determine which closing letter to send.

    5. Input the appropriate IDT tracking indicator, TC 971 AC 501 or TC 971 AC 506, with the appropriate Posting Delay Code on the entity module. Use the SECONDARY-DT field to indicate the tax year in question. Use the TRANS-DT field to indicate the current (input) date. Input "WI ITVAA MULTFL" or other appropriate Tax Administration Source Code in the MISC field.
      Other Tax Administration Source Codes available to be used when warranted are:

      NOFR
      INCMUL
      INCOME
      OTHER

    6. If the IDT Return does not meet criteria for treatment as a nullity, see IRM 25.23.4.10.9, IRSN Required for Identity Theft (IDT) Return, for guidance on additional actions required.

    7. If the IDT Return can be nullified, then refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, to ensure all actions have been taken, as applicable.

  2. When the valid return posted first and the account has been adjusted to the invalid return figures, refer to IRM 25.23.4.10.13.1, Amended Returns and Identity Theft (IDT) - Valid/Invalid.

Two or More Invalid Returns (No Valid Return) - No Lost Refund

  1. The procedures below must be used when all of the following are met:

    • Two more IDT returns were filed (i.e., the TC 150 and the TC 976 are both invalid)

    • The case does not meet the criteria to be nullified per the listing in IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing

    Note:

    If you determine both returns are invalid, but only one of the returns is deemed invalid per the streamline process, you can nullify the return that meets the nullity criteria and move the other one to an IRSN per the instructions below.

    1. Zero out the account - input TC 29X, Blocking Series 05, Reason Code 139, and "NSD" to release the "A" freeze. Notate in remarks "Identity Theft" or similar remarks.

    2. Use a HC to prevent issuance of erroneous notices to the taxpayer. For additional information on Hold Codes, see IRM 21.5.2.4.15, Rules on Hold Codes (HC).

    3. Correct the entity module to the last known good address for the SSN owner. If you are unable to find a last known good address, update the address to the address of the service center.

    4. Input TC 971 with Action Code 001 if the TC 150 return cannot be nullified. Enter the IRSN that is associated with the 150 as the cross-reference.

    5. Input TC 971 with Action Code 002 if the TC 976 document(s) cannot be nullified. Enter the IRSN that is associated with the TC 976(s) as a cross-reference.

    6. Input TC 971 with Action Code 017 on IRSN accounts after the TC 000(s) post. Enter the CN TIN as a cross-reference.

      Note:

      Close the CIS base, monitor the TC 000 posting and then input the TC 971 AC 017.

    7. Transfer payments to the correct account if necessary.

    8. Take the appropriate steps to reprocess/post tax returns that cannot be nullified to the IRSNs. See IRM 21.5.2.4.23, Reprocessing Returns/Documents.

    9. See the IDT closing letter chart in Exhibit 25.23.4-10, Identity Theft (IDT) Closing Letter Decision Chart, to determine which closing letter to send.

    10. Input TC 971 AC 501 or AC 506, whichever is appropriate, with a posting delay of 2 cycles on the entity module of the CN. Use the SECONDARY-DT field to indicate the tax year in question. Use the TRANS-DT field to indicate the current (input) date. Input "WI ITVAA MULTFL" or other appropriate Tax Administration Source Code in the MISC field.
      Other Tax Administration Source Codes available to be used when warranted are:

      NOFR
      INCMUL
      INCOME
      OTHER

    11. Add a case note on CIS and/or the TIN-Related Worksheet "CSR determined both returns invalid."

      Note:

      For the purpose of this subsection, do not correspond with the non-owners of the CN. If you are able to update the account to the last known address for the CN owner, send the appropriate letter.

    Reminder:

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

    Note:

    If a statute or statute imminent return in involved, refer to IRM 25.23.4.9.1, Determining When Specific Year Account Information Must Be Moved.

  2. Follow procedures in IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the valid taxpayer has a filing requirement and address unfiled returns.

Two or More Invalid Returns (No Valid Return) - Lost Refund

  1. Follow the guidance in IRM 25.23.4.10.4, Two or More Invalid Returns (No Valid Return) - No Lost Refund, to zero the account and address unfiled returns.

  2. If a refund was issued on the CN to the filer of the TC 150 return, it must be moved to the TC 150 taxpayer’s IRSN if that return cannot be nullified. See IRM 21.5.2.4.23.10, Moving Refunds, for moving refund procedures.

  3. If a refund was issued on the CN to the filer of the TC 150 return and that return can be nullified, offset the lost refund (associated with the IDT return) to GL 1545. Refer to IRM 25.25.4.7, Reversing Identity Theft Lost Refunds, for additional guidance.

One IDT Return - No Lost Refund

  1. The procedures below must be used when one return is present and has been determined to be an IDT return.

  2. If the IDT return meets the criteria to be nullified per the listing in IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, nullify the IDT return.

  3. If the IDT return does not meet the criteria to be nullified, move the IDT return to an IRSN per the instructions below.

  4. Take the following actions to resolve the TIN owner’s account:

    1. Zero out the account - input TC 29X, Blocking Series 05, Reason Code 139, and "NSD" with a notation in remarks "One Return - Identity Theft" or similar remarks.

    2. Use a HC 3 or HC 4, as appropriate, to prevent issuance of erroneous notices to the taxpayer. For additional information on Hold Codes, see IRM 21.5.2.4.15, Rules on Hold Codes (HC).

    3. Correct the entity module to the last known good address for the TIN owner. If you are unable to find a last known good address, update the address to the address of the service center.

    4. Input TC 971 with Action Code 001 if the TC 150 return cannot be nullified. Enter the IRSN that is associated with the TC 150 as the cross-reference TIN.

    5. Input TC 971 with Action Code 017 on the IRSN account after the TC 000 posts. Enter the CN as the cross-reference TIN.

      Note:

      Close the CIS base, monitor the TC 000 posting and then input the TC 971 AC 017.

    6. Transfer payments to the correct account, if necessary.

    7. Take the appropriate steps to reprocess/post tax returns that cannot be nullified to the IRSN. See IRM 21.5.2.4.23, Reprocessing Returns/Documents.

    8. See the IDT closing letter chart in Exhibit 25.23.4-10, Identity Theft (IDT) Closing Letter Decision Chart, to determine which closing letter to send.

    9. Input TC 971 AC 501 or AC 506, whichever is appropriate, with a posting delay of 2 cycles on the entity module of the CN. Use the SECONDARY-DT field to indicate the tax year in question. Use the TRANS-DT field to indicate the current (input) date. Input "WI ITVAA MULTFL" or other appropriate Tax Administration Source Code in the MISC field.
      Other Tax Administration Source Codes available to be used when warranted are:

      NOFR
      INCMUL
      INCOME
      OTHER

    10. Add a case note on CIS and/or the TIN-Related Worksheet One Return - Identity Theft, or similar remarks.

      Note:

      For the purpose of this subsection, do not correspond with the non-owner of the CN. If you are able to update the account to the last known address for the CN owner, send the appropriate letter.

    Reminder:

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

    Note:

    If a statute or statute imminent return is involved, refer to IRM 25.23.4.9.1, Determining When Specific Year Account Information Must Be Moved.

  5. Follow procedures in IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the valid taxpayer has a filing requirement and address unfiled returns.

One IDT Return - Lost Refund

  1. Follow the guidance in IRM 25.23.4.10.6, One IDT Return - No Lost Refund, to zero the account and address unfiled returns..

  2. If a refund was issued on the CN to the filer of the TC 150 return, it must be moved to the TC 150 taxpayer’s IRSN if that return cannot be nullified. See IRM 21.5.2.4.23.10, Moving Refunds, for moving refund procedures.

  3. If a refund was issued on the CN to the filer of the TC 150 return and that return can be nullified, offset the lost refund (associated with the IDT return) to GL 1545. Refer to IRM 25.25.4.7, Reversing Identity Theft Lost Refunds, for additional guidance.

Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement - Resolution Tables

  1. There are instances when IDTVA receives cases with RIVO and/or TPP involvement that require additional guidance to resolve. The charts in paragraphs (2) and (3) below illustrate various case scenarios you may receive that can be resolved. Before proceeding to the resolution charts, refer to the bullet list below for instances when the current year must be resolved by RIVO/TPP.

    • The income cannot be verified using IRM 25.23.4.8.1.1, IDT with RIVO Involvement.

    • A UPC 147 is present on the account with RC 6/7 or 8. (All UPC RC 0 or 1 will be worked by SPIDT criteria). See IRM 21.4.1.4.1.2, Return Found/Not Processed

      Note:

      Each return for each tax year must be screened separately.

      Reminder:

      When resolving an account with identity theft involvement, the IDTVA employee must address all issues per IRM 25.23.2.3.1.1, Addressing All Taxpayer Issues, and on all active tax years IRM 25.23.4.6.4, Complete Case Analysis.

  2. For cases/transcripts with TPP involvement, see the table below.

    Reminder:

    All cases with RIVO involvement must be closed with the IDT8/IDS8 category code, unless the case is a transcript (IDT6/IDS6) or meets criteria described in IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO Involvement.

    Reminder:

    If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    If And Then
    (1) TPP issue is unresolved, The taxpayer has authenticated per AMS notes, you can validate the return per IRP data, or the taxpayer is claiming IDT

    Exception:

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

    You can resolve UPC 126 0 or TC 971 AC 129 following 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, procedures.
    When following 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 returns validated per IRP data or taxpayer claiming IDT disregard Authentication Passed references within this IRM section.
    (2) TPP issue is unresolved, The taxpayer has not authenticated per AMS notes, the return cannot be validated per IRP data, or
    There is no IDT involvement (i.e., TRUE DUP) and IDTVA cannot make a determination.

    Caution:

    Before continuing, ensure this is not a data breach.


    Follow IRM 21.5.6.4.9, E-Freeze, or IRM 21.5.1.4.4.1, Unresolved Taxpayer Protection Program (TPP) Issues for Correspondence and Loose Forms, as applicable.
    (3) TPP issue is unresolved, TP filed a potential amended return or there is no IDT involvement (i.e., TRUE DUP) and IDTVA can make a determination.

    Caution:

    Before continuing, ensure this is not a data breach.

    You can resolve UPC 126 0 or TC 971 AC 129 following 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, procedures.
    (4) Valid return is a mixed entity, TP A (CN owner) posted first, You can resolve UPC 126 0 or TC 971 AC 129 following IRM 25.25.6.5, Responding to the Taxpayer and Case Resolution for the Taxpayer Protection Program (TPP) Telephone Assistors and Taxpayer Assistant Center (TAC) Assistors. Review the TPP IRM for your case scenario.

    Note:

    These returns have already been through the TPP process.


    After the TPP issue has been resolved, refer to IRM 21.6.2, Mixed Entity Procedures, for remaining actions to resolve the case.
    (5) Valid return is a mixed entity, TP B posted first and the return must be reprocessed to a different TIN, The return must go through the normal TPP process on the correct TIN.
    Refer to IRM 21.6.2, Mixed Entity Procedures.

    Note:

    Previous authentication on an incorrect TIN does not apply.

    (6) Valid return is a mixed period, The return posted as TC 150 or TC 976 and AMS reflects the TP has already authenticated, You can resolve UPC 126 0 or TC 971 AC 129 following procedures in 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. These returns have already been through the normal TPP process.
    (7) Valid return is a mixed period, The return posted as TC 977 or the TP has not authenticated, and IDTVA can make a determination, You can resolve UPC 126 0, or TC 971 AC 129 following 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, procedures.
    (8) Valid return is a mixed period, The return posted as TC 977 or the TP has not authenticated, and IDTVA cannot make a determination, Follow IRM 21.5.6.4.9, E-Freeze, or IRM 21.5.1.4.4.1, Unresolved Taxpayer Protection Program (TPP) Issues for Correspondence and Loose Forms, as applicable.
  3. For cases/transcripts with RIVO Involvement, see the table below.

    Reminder:

    If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    If And Then
    (1) Return was erroneously abated by RIVO, There is NO IDT and the ASED is within 90 days of expiration,
    Obtain lead/manager approval per note below.
    Reverse all IDT indicators. Input remarks on CIS and open control base using "PROMPT2IVO" , category code "TPRQ" , status code "A" , and IDRS number "1487755555" to RIVO.
    (2) Return was erroneously abated by RIVO, There is IDT involvement (e.g., MFT 32, Voided/Deleted) and the ASED is within 90 days of expiration,
    Obtain lead/manager approval per note below.
    Complete IDT procedures, as applicable. Input remarks on CIS and open control base using "PROMPT2IVO" , category code "TPRQ" , status code "A" , and IDRS number "1487755555 " to RIVO.
    (3) Return was erroneously abated by RIVO, There is NO IDT involvement and the ASED has expired,
    Obtain lead/manager approval per note below.
    Reverse all IDT indicators, Input remarks on CIS, "Account backed out as IDT in error by RIVO. Barred assessment" and open control base using" BARRED2IVO" category code "TPRQ" , status code "A" , and IDRS number "1487766666" to RIVO.
    (4) Return was erroneously abated by RIVO, There is IDT Involvement (e.g., MFT 32, Voided/Deleted) and the ASED has expired, Complete IDT procedures, as applicable. Input remarks on CIS and open control base using "PROMPT2IVO" , category code "TPRQ" , status code "A" , and IDRS number "1487755555" to RIVO.
    (5) The account was erroneously abated by RIVO after the account was adjusted as a Invalid/Valid, There is IDT involvement and the ASED is within 90 days or has expired, Do not refer the case to RIVO. Follow IRM 25.23.2.5, Statute Protection, procedures.
    (6) The return was moved to MFT 32 in error, Follow procedures in IRM 25.23.4.14.1, MFT 32 Cases - Moved in Error.

    Note:

    Before opening a control base to RIVO and closing your CIS case, you will need lead/manager approval. Prior to requesting approval, the CSR/TE must input a case note of their determination on CIS. The lead/manager cannot concur with a determination that is not posted on the case.

    Note:

    If the lead and/or manager concur with your determination they will need to send an encrypted email to the RIVO mailbox (*W&I-RICS-IVO-AR) with the subject line "Expedite Statute Case." In the body of the email, you should include the social security number, tax period and the ASED of the case.

IRSN Required for Identity Theft (IDT) Return

  1. Take the following actions when an IRSN is required to reprocess the IDT return:

    1. Follow local procedures to obtain an IRSN.

    2. Establish the account TC 000.

      Note:

      Use a Service Center address whenever appropriate (i.e., both returns reflect the same address).

    3. Edit the IDT return to show the name and address of the Service Center working the case, per IRM 3.13.5.64, Campus Address Used Only When Taxpayer Address is Unavailable, when the IDT return contains the same address as the CN. List the name(s) as shown in the chart.

    4. Edit the IDT return with Computer Condition Code (CCC) 3, if appropriate, to hold any refund. To prevent unnecessary AMRH transcripts, if the overpayment is a year old or older transfer the overpayment to Excess Collections. See IRM 21.2.4.3.10.1, Excess Collections File (XSF) and Unidentified Remittance File (URF) for AMRH.

    5. Close the CIS base and monitor for the TC 000 to post.

    6. Input TC 971 with Action Code 017 on the IRSN (when posted) to cross reference the misused SSN. Refer to IRM 21.5.1.4.8, Transaction Code 971, for additional guidance.

    7. Input TC 971 with Action Code 001 or 002, whichever is appropriate, on the CN to cross reference the IRSN depending on whether the IDT return posted first or second. Refer to IRM 21.5.1.4.8, Transaction Code 971, for additional guidance.

    8. Send a Letter 4675C advising the non-owner of the CN to contact SSA and to use the IRSN for federal tax purposes until SSA determines their correct SSN. SSA will advise the taxpayer to file Form W-7, Application for IRS Individual Taxpayer Identification Number, to obtain an ITIN if the taxpayer cannot obtain a SSN.

      Note:

      If the CN is an ITIN, send a Letter 4675C advising the non-owner of the CN to use the IRSN for federal tax purposes and to file a new Form W-7, Application for IRS Individual Taxpayer Identification Number.

      Caution:

      When corresponding with the non-owner of the CN, send the letter from the non-owner's IRSN. Do not include the CN in your letter to the non-owner.

      Caution:

      Do not attempt to correspond with the non owner of the CN if you are unable to locate a good address; Service Center address is present.

    9. Allow the math error and normal collection processes to address any balance due issues resulting from the reprocessing of the return under an IRSN.

    10. Refer to IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing, to ensure all actions have been taken, as applicable.

Income Related Identity Theft (IDT)

  1. Use the following procedures to resolve accounts determined to be impacted by income related IDT only.

  2. If needed, update the taxpayer’s entity information.

  3. Input TC 290 .00 with BS 05, RC 139, and HC 3. If there is a credit that should not be refunded, use HC 4.

    Exception:

    TC 290 .00 does not need to be input on a module when any of the following conditions exist:
    • If there is no TC 150.
    • If no tax module exists.
    • When an impacted module is not active on IDRS CC TXMOD and is not yet in retention. Do not input IDRS CC MFREQ.

    Note:

    Use of the xClaim tool to input the TC 290 .00 will prevent unnecessary modules from being made active with IDRS CC MFREQ.

  4. Input the appropriate TC 971 AC 50X. For additional information, see IRM 25.23.4.8.3.1, Income Related Identity Theft (IDT) - Determinations, paragraphs (5) - (7).

  5. If the income in question is wage income, complete Form 9409, IRS/SSA Wages Worksheet, unless the taxpayer has provided a Social Security Administration determination letter addressing the income. See IRM 25.23.4.15, Form 9409 Procedures - IRS/SSA Wage Worksheet, for specific instructions.

  6. Address any modules without returns filed by the CN owner. Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, for specific procedures.

  7. When the account has unresolved TDI issues, see IRM 25.23.2.6.5, Closing Identity Theft Cases with Tax Delinquency Inquiries (TDI), for additional information.

  8. If there is a Delinquent Return Refund Hold issue, see IRM 25.23.10.5.2.1, Refund Hold Program, for specific instructions.

Identity Theft with Offsets

  1. A taxpayer’s overpayment is required to be applied to any outstanding Federal tax debt, Federal non-tax debt, child support, Treasury Offset Program (TOP) debt, State income tax obligation, or Unemployment Compensation prior to being refunded per IRC § 6402(a), (c), (d), (e), and (f).

  2. A tax offset occurs when a refund is applied to an outstanding IMF, BMF, or NMF liability.

  3. A refund will be applied as a TOP offset after verification of no Federal tax debt when a Federal non-tax debt has been identified.

  4. When an identity theft case includes tax offsets and/or TOP offsets, refer to the following subsections for specific procedures to address the offsets while correcting the taxpayer’s account:

    • IRM 25.23.4.10.11.1, Identity Theft with Tax Offsets

    • IRM 25.23.4.10.11.2, Identity Theft with TOP Offsets

Identity Theft with Tax Offsets
  1. Internal Revenue Code IRC (§) 6402(a), (c), (d), (e), and (f) require a taxpayer’s overpayment to be applied to any outstanding Federal tax debt, child support, Treasury Offset Program (TOP), State income tax obligation, or Unemployment Compensation prior to crediting the overpayment to a future tax or issuing a refund. This application of a tax overpayment is called a refund offset. Refund offsets to Federal tax debts are called tax offsets.

  2. Tax offsets may be the taxpayer’s first indication they are a victim of Identity Theft (IDT).

    Example:

    (Income or employment related IDT): The taxpayer files their 2018 return expecting a refund. The taxpayer later receives a notice advising them of their refund being applied to a Federal tax debt for tax year 2016. The taxpayer calls for additional information and learns that income earned by someone else was reported for tax year 2016 which resulted in an AUR assessment.

    Example:

    (Refund related IDT): The taxpayer files their 2018 return expecting a refund. When the taxpayer calls to check on the status of their refund, they are informed it has been applied to a balance owed for the 2012 tax return filed. The taxpayer submits Form 14039 explaining the first time they filed a return was for tax year 2017.

  3. Tax offsets must be resolved as part of the corrective actions for Identity Theft and RPM cases and will be treated as payments in most cases. For more information on credit availability for refund or offset, see IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF), for procedures related to credits that are not refundable and credits that are refundable but have been moved to XSF in error. Do not input a tax offset reversal unless criteria in (4), (5), or (6) is met.

  4. The Collection Statute Expiration Date (CSED) is the expiration of the time period established by law to collect taxes (generally 10 years from the 23C date). Once the CSED has expired, tax offsets cannot be applied to the balance owed. When a tax offset has been applied to a module after the CSED expired,, follow the procedures in the table below:

    Caution:

    Review the posting cycle of the tax offset to verify it was not applied prior to the expiration of the CSED before transferring the credit to the original module. If the tax offset posted before the CSED expired, the credit must not be moved.

    Example:

    Form 14039 is received on May 2, 2019. Tax year 2008 is the impacted year. A determination of one return IDT was made. Through research you find the valid taxpayer’s 2015 return was filed by April 18, 2016 and the refund offset to the balance owed for tax year 2008. The CSED for tax year 2008 is April 15, 2019, and the offset was applied to the balance in cycle 201617 (April 22 - April 28, 2016). Because the offset was applied to the balance before the CSED expired, it would not be returned to the tax year 2015 module. Credit availability will be determined following normal statute procedures for payments (i.e., 2 year rule).

    If And Then
    (1) The credit is available for refund or offset, The RSED is open, Transfer the credit back to the original module. On the credit side, include TC 570 followed by TC 572 with the appropriate priority code to prevent an offset back to the expired CSED module. Allow the system to refund the credit or offset it to another liability.
    (2) The credit is available for refund or offset, The RSED is expired, Transfer the credit back to the original module. On the credit side, include TC 570 to prevent offset to the expired CSED module. Issue a manual refund following procedures in IRM 21.4.4.5,Preparation of Manual Refund Forms.
    (3) The credit is not available for refund or offset, Transfer the credit back to the original module. On the credit side, include TC 570 to prevent offset back to the expired CSED module. Apply the credit to the Excess Collection File following procedures in IRM 25.6.1.7.3.1,Transferring Credit to XSF.

  5. When the balance due module is a Married Filing Joint account and the tax offset applied to the balance is from a module that does not reflect both spouses’ names, follow procedures in the table below:

    If And Then
    (1) The credit is available for refund or offset, The RSED is open, Transfer the credit back to the original module. On the credit side, include TC 570 followed by TC 572 with PDC 2 to prevent offset back to the expired balance due module, if necessary. Allow the system to refund the credit or offset it to another liability, when possible.
    (2) The credit is available for refund or offset, The RSED is expired, Transfer the credit back to the original module. Include TC 570 to prevent offset back to the balance due module. Issue a manual refund following procedures in IRM 21.4.4.5,Preparation of Manual Refund Forms.
    (3) The credit is not available for refund or offset, Transfer the credit back to the original module. Include TC 570 to prevent offset back to the balance due module. Apply the credit to the Excess Collection File following procedures in IRM 25.6.1.7.3.1,Transferring Credit to XSF.
  6. TAS hardship requests for returning an offset to the originating module must be considered. The CSR/TE assigned the case is responsible for verifying offset reversal criteria is met. When an Operations Assistance Request (OAR) is received requesting reversal of a tax offset, return the offset to the originating module if the offset is the result of a TAS or IRS clerical error. A clerical error is an error resulting from a minor mistake or inadvertence, in writing or copying something on the record. A clerical error is not an error based on substance or judgment. Clerical errors include:

    • Typing an incorrect number

    • Transcribing a word incorrectly

    • Misdirecting a form

    • Sending a form to a nonworking fax machine

    Example:

    The TY 2017 module reflects a balance owed, and the taxpayer has filed Form 14039. The taxpayer meets hardship criteria and contacts Taxpayer Advocate Service (TAS) for assistance. The Case Advocate receives documentation supporting the taxpayer’s economic hardship and submits an Offset Bypass Refund (OBR) request prior to the TY 2018 refund being applied to the TY 2017 balance owed. The OBR request includes transposed numbers in the taxpayer’s TIN. The Case Advocate is contacted for a corrected request which is received after the TY 2018 refund was applied to the TY 2017 balance. Because the error made is clerical in nature, the offset will be returned to the TY 2018 module to be refunded to the taxpayer.

Identity Theft with TOP Offsets
  1. Service-wide guidance for addressing accounts with a TOP offset is located in IRM 21.4.6.4,Refund Offset Research.

  2. There are two types of refund offsets:

    1. Federal tax offset

    2. Treasury Offset Program offset (effective 01/11/1999)

  3. Bureau of the Fiscal Service initiates refund offsets to outstanding federal agency debts or child support, State Income tax obligations, and Unemployment Compensation debts. These offsets appear on the module as:

    1. TC 898 or TC 971 AC 598 (manual input of TOP offset record) with an Offset Trace Number (OTN), an offset amount, and a debtor-TIN field, if the offset is secondary spouse

    2. OTN - Starting with 1 indicates primary taxpayer debt

    3. OTN - Starting with 2 indicates secondary taxpayer debt

  4. Command Code (CC) INOLE contains debt liability indicators based on information received from the Bureau of the Fiscal Service. The indicators are used to identity a Federal tax debt TOP debt, or both. You must thoroughly research for any outstanding Federal tax or TOP debts. Always attach the INOLES for both spouses identifying the debt indicator at the time the case is worked. Include BMF screens when there is an X-REF EIN. The debt indicators are:

    1. (I) IRS Debt

      Note:

      The (I) indicator is not always set for all Federal tax debts. To determine if there is an outstanding Federal tax debt, you must also research Command Code (CC) IMFOL, CC BMFOL, and/or CC TXMOD as well as CC INOLES even on "N" indicator cases.

    2. (F) Bureau of the Fiscal Service TOP Debt

    3. (B) Both IRS and Bureau of the Fiscal Service TOP Debt

    4. (N) No Debt

    Note:

    The IAT Results IS screen may respond with a debt indicator "N" when an invalid Social Security Number (SSN) indicator follows the Taxpayer Identification Number (TIN). The IAT Tool is designed to research CC INOLET when the invalid indicator is present. If CC INOLET does not display a debt indicator, then the IAT Results IS screen display the "N" . Additional research is needed if the secondary TIN is invalid.

  5. The Department of the Treasury (Treasury), Bureau of the Fiscal Service (BFS), amended its regulation governing the offset of tax refund payments to collect past-due child support obligations. This change limits the time in which Treasury may reverse a tax refund offset to collect a delinquent child support debt to six months.

  6. To address this change, IRS must limit the time to reverse a child support offset to 5 months (150 days) from the refund payment date. To determine the date of offset, use the RFND-PYMT-DT associated with the TC 846/840. The 5-month limit allows for internal system processing of the offset reversal request (TC 766 with an Offset Trace Number - OTN). Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 21.4.6.4.2.4,Child Support TOP Offsets.

  7. Offsets that occur during processing year 2016 and beyond will post with the Agency and Sub-Agency code. If the Agency code is "1" or "2" , the offset is for a delinquent child support debt and the 5 month limitation rule applies except for a Form 8379, Injured Spouse Allocation. See Document 6209 Section 5, for Office of Child Support Enforcement Agency and Sub-Agency codes.

  8. Offsets due to delinquent child support occurring during processing years 2012-2015 will be identified by the posting of Transaction Code (TC) 971 Action Code (AC) 126. The Agency Code, OTN, and offset amount will be identified in the MISC field.

  9. Offsets due to delinquent child support prior to 2012 will not have any indicators identifying which agency the refund offset to. Contact the TOP liaison to identify the agency code(s).

  10. For all TOP Offsets involving Identity Theft, follow the guidance in IRM 21.4.6.4.2.12,TOP Offsets Involving ID Theft and ID Theft with Fraudulent Returns. Input TC 470, as needed, to prevent balance due notices from generating while the case is being worked. If TC 470 is input, TC 472 must also be input when the valid taxpayer will have a balance owed after the identity theft issue is resolved. Include a post delay code with the TC 472 if input at the same time as TC 470.

  11. A manual reversal is required when you have an IMF/BMF offset which was sent to Bureau of the Fiscal Service in error and cannot be reversed with a TC 766 (IRS reversal) or TC 899 (Bureau of the Fiscal Service reversal). Once the TOP/DMF Manual Reversal Request Form has been submitted and all required ID theft account resolution actions completed, close the case. It may take 180 days or longer for the TC 700 to post. A monitoring control with Activity "PNDMRR/###" and category "MISC" will be opened by the assigned employee. Refer to IRM 21.4.6.5.12.2, Manual Reversal of TOP Offset, for additional guidance.

Identity Theft and Restitution

  1. When restitution is court ordered, the taxpayer’s account will include references to related modules reflecting the amount of restitution ordered.

  2. Modules with restitution references can be identified by:

    1. TC 971 AC 18X

    2. TC 766 with reference number 337

  3. Do not assume the taxpayer is not a victim of identity theft when restitution references are present. An identity theft determination is made based on the facts and circumstances of the case without consideration of the restitution ordered.

  4. If an identity theft determination has been made, contact SB/SE Examination Technical Services (TS) via email at *SBSE TECH Svs Criminal Restitution to inform them of the identity theft claim and determination. Cc: headquarters representative ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on the email. Suspend the case for 14 days to allow time for TS to provide a response. See Exhibit 25.23.4-13, Format for Emails to SB/SE Examination Technical Services, for an example of an email that includes the required information listed below:

    1. Subject: Identity Theft Claim with Restitution

    2. Taxpayer’s name

    3. Taxpayer’s SSN

    4. Impacted year(s)

    5. Identity theft determination

    6. Relevant documentation attached (i.e., Form 14039, Police Report, correspondence, etc.)

  5. Determinations of no identity theft (NOIDT) do not need to be provided to TS for review.

  6. TS will use the information to evaluate the potential impact on the court ordered restitution and contact Criminal Investigation (CI). TS will provide a response and make any necessary linkage adjustments.

  7. Upon receipt of a response or expiration of the 14 day suspense period, follow the procedures in the table below:

    If Then
    (1) The response from TS supports the IDT determination made,
    • Take all necessary actions to resolve the account based on your determination.

    • Attach the initial email request and response from TS to your CIS case.

    (2) The response from TS provides information that indicates the taxpayer is not a victim of identity theft,
    Consider the additional information:
    • If you agree with the information, update your determination to reflect NOIDT, and take all necessary actions to resolve the account.

    • If you do not agree, lead or manager concurrence must be obtained and documented prior to adjusting the account based on your determination.

    • Attach the initial email request and response from TS to your CIS case.

    (3) If you do not receive a response from TS,
    • Resubmit your request, including all required information listed in (4) above.

    • Leave a case note indicating a response was not received from TS and a second request is being submitted.

    • Suspend your case for 14 days.

    (4) If you do not receive a response to your second request,
    • Take all necessary actions to resolve the account based on your determination.

    • Leave a case note indicating a response was not received from TS.

    • Attach the initial email request and follow-up email request to your CIS case.

Amended Returns and Identity Theft (IDT)

  1. Taxpayers may file a Form 14039, submit a Police Report, or send other correspondence indicating they are a victim of identity theft in instances where amended returns are involved, including the following scenarios:

    • The taxpayer did not file the TC 150 return and is filing an amended return to correct the account.

    • The taxpayer has received a notice and did not file an amended return or authorize a preparer to file an amended return on their behalf.

    • The taxpayer has not filed a return for the year in question and the account reflects receipt of an original return and an amended return.

  2. Accounts may reflect a posted or pending TC 977 and/or TC 971 Action Codes indicating an amended return has been received. Refer to IRM 3.11.6.4.25.1, Transaction Code (TC) 971 and Action Codes, for a list of the codes most frequently used by Code and Edit in conjunction with TC 971 to indicate the receipt of an amended return.

  3. Refer to the following subsections for procedural guidance.

Amended Returns and Identity Theft (IDT) - Valid/Invalid
  1. There are situations when the taxpayer is claiming identity theft involving an amended return filed on their account. Thorough research must be conducted to make an identity theft determination.

    Reminder:

    A return filed by the invalid taxpayer that includes income earned by the valid taxpayer may appear to be filed by the valid taxpayer.

  2. Return Preparer Misconduct (RPM) claims indicating the taxpayer authorized a preparer to file their original return but did not authorize a preparer to file an amended return on their behalf (CAT 1) will be treated as taxpayer-initiated identity theft claims. Resolution of these cases will include nullification of the invalid amended return and the input of TC 971 AC 501.

  3. Once the amended return is determined to be invalid, identify the appropriate process to resolve the account - streamline or non-streamline. See IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, and IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, for additional information.

  4. Follow the applicable procedures in the table below based on your determination.

    Reminder:

    Do not include an Amended Claims Date (ACD) when inputting adjustments related to amended returns for IDT cases.

    If Then
    (1) The amended return meets nullity criteria, and the account has not been adjusted to the amended return figures,
    • Input TC 290 .00 with BS 05, RC 139, and HC 3. Use HC 4 when there is a credit balance on the module that should not be refunded or when issuing a manual refund.

    • Ensure appropriate actions are taken to address all applicable account conditions as described in IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing.

      Reminder:

      Returns meeting nullity criteria must not be forwarded to SP for the posting of TC 976.

    • If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    (2) The amended return meets nullity criteria, and the account has been adjusted to the amended return figures.
    • Adjust the account to the original return figures with BS 05, RC 139, and HC 3. Use HC 4 when there is a credit balance on the module that should not be refunded or when issuing a manual refund. Include a Return Processable Date (RPD) when the previous adjustment included an ACD.

    • Ensure appropriate actions are taken to address all applicable account conditions as described in IRM 25.23.4.6.3, Input, Annotations and Action Requirements for Streamline/Non-Streamline Case Processing.

      Reminder:

      Returns meeting nullity criteria must not be forwarded to SP for the posting of TC 976.

    • If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    (3) If the amended return does not meet nullity criteria,
    • The account will need to be adjusted to reflect the information reported on the original return if the module was previously adjusted to the amended return figures. Include a Return Processable Date (RPD) when the previous adjustment included an ACD.

    • If the amended return is filed on Form 1040-X, create a dummy Form 1040 with the information reported.

    • If there is no posted TC 977 for a Form 1040 identified as an amended return, follow procedures in IRM 25.23.4.6.5.2, Unprocessed Documents, to forward the return to SP for the posting of TC 976.

    • If TC 470 CC 90 was input, TC 472 must also be input when the valid taxpayer will have a balance owed.

    • IDTVA-A employees: Follow procedures in IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, and IRM 25.23.4.10.9, IRSN Required for Identity Theft (IDT) Return, to correct the account.

    • IDTVA Specialty Functions employees: Follow procedures in IRM 25.23.10.6, Post Function Referral Procedures, to refer the case to DITA.

      Note:

      If the Exam review was closed based on the invalid amended return filing, see IRM 25.23.10.7.4.2.2, Technical - IDT Claim Consideration.

    Reminder:

    Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

Amended Returns and Identity Theft (IDT) - Invalid/Valid
  1. Determine if the invalid return meets nullity criteria. See IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, for additional information. Follow the applicable procedures in the table below based on your determination.

    If Then
    (1) The invalid return meets nullity criteria,
    • If the valid amended return is filed on Form 1040-X, create a dummy Form 1040 with the information reported.

    • Follow procedures in IRM 25.23.4.6.5.2, Unprocessed Documents, to forward the valid return to SP for the posting of TC 976.

    • After the TC 976 posts, follow the instructions in IRM 25.23.4.10.1, Invalid Return/Valid Return - No Lost Refund, or IRM 25.23.4.10.2, Invalid Return/Valid Return - Lost Refund.

    (2) The invalid return does not meet nullity criteria,
    • If the valid amended return is filed on Form 1040-X, create a dummy Form 1040 with the information reported.

    • Follow procedures in IRM 25.23.4.6.5.2, Unprocessed Documents, to forward the valid return to SP for the posting of TC 976.

    • IDTVA-A employees: After the TC 976 posts, refer to IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, and IRM 25.23.4.10.9, IRSN Required for Identity Theft (IDT) Return, for information related to non-streamline case processing. Follow the instructions in IRM 25.23.4.10.1, Invalid Return/Valid Return - No Lost Refund, or IRM 25.23.4.10.2, Invalid Return/Valid Return - Lost Refund, to resolve the valid taxpayer’s account.

    • IDTVA Specialty Functions employees: Follow procedures in IRM 25.23.10.6, Post Function Referral Procedures, to refer the case to DITA.

    Reminder:

    Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

  2. Determine if the valid taxpayer is due a refund.

    1. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, and IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim.

    2. Apply credits available for refund or offset to outstanding liabilities, if applicable.

    3. If necessary, manually refund any allowable amount remaining. Refer to IRM 21.4.4.3(3), Why Would a Manual Refund Be Needed?, and IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional information.

    4. Move any credits not available for refund or offset to the Excess Collection File. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

Amended Returns and Identity Theft (IDT) - No Valid Return
  1. Determine if the invalid return meets nullity criteria. See IRM 25.23.4.8.1, Streamline Identity Theft (IDT) Case Identification and Processing, for additional information. Follow the applicable procedures in the table below based on your determination.

    Reminder:

    Each return on the account must be considered separately. It is possible to follow nullity procedures for one invalid return but assign an IRSN for another invalid return posted to the same module.

    If Then
    (1) There is No Lost Refund,
    • Follow the instructions in IRM 25.23.4.10.4, Two or More IDT Returns (No Valid Return) - No Lost Refund.

    (2) There is a Lost Refund,
    • Follow the instructions in IRM 25.23.4.10.5, Two or More IDT Returns (No Valid Return) - Lost Refund.

    Reminder:

    Statute year returns require additional research prior to taking action on an account. Review IRM 25.23.4.9, Statute Processing Considerations, to ensure all applicable statutes are protected.

  2. Determine if the valid taxpayer is due a refund.

    1. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues, and IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim.

    2. Apply credits available for refund or offset to outstanding liabilities, if applicable.

    3. If necessary, manually refund any allowable amount remaining. Refer to IRM 21.4.4.3(3), Why Would a Manual Refund Be Needed?, and IRM 21.4.4.5, Preparation of Manual Refund Forms, for additional information.

    4. Move any credits not available for refund or offset to the Excess Collection File. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

Amended Returns and Identity Theft (IDT) - NO IDT Determinations
  1. When a determination of NOIDT has been made for an IDT claim with amended returns, take all necessary actions described in IRM 25.23.2.6.6.2, No Identity Theft (NOIDT) Determinations - TC 972 AC 522 NOIDT.

  2. Create a new CIS case for the amended return. Use Category Code XRET and Program Code 40051. Link the new case to your original case.

  3. If you are trained to work the XRET program, you will resolve the case.

  4. If you are not trained to work the XRET program, you will reassign the case using the IDTVA Specialty CIS Reassignment Guide for Non-IDT Cases located on the IDTVA Hub.

Identity Theft (IDT) - Previous Action

  1. When it appears the identity theft issue was previously worked and the CIS images do not include a tax return, refer to the table below to determine the appropriate actions:

    Caution:

    Verify all required actions were taken prior to closing a case as previous action.

    If And Then
    (1) The CIS image(s) of form 14039, police report, and/or correspondence are an exact copy of the documents in the CIS case previously worked, All dates (i.e., signature date, IRS received date stamp, fax date/time stamp, etc.) are the same as those on the original documents,
    • Input a CIS case note indicating the CIS images are duplicates.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • If an acknowledgement letter was issued after the original CIS case was closed, send an IRS apology Letter 0544C/SP. Include paragraph K and the IDT toll-free number 800-908-4490.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (2) The CIS image(s) of Form 14039, police report, and/or correspondence are an exact copy of the documents included in the CIS case previously worked, The documents include dates (i.e., signature date, IRS received date stamp, fax date/time stamp, etc.) that indicate the documents were signed or received before the date the previous case was closed,
    • Input a CIS case note indicating the CIS images are duplicates.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • If an acknowledgement letter was issued after the original CIS case was closed, send an IRS apology Letter 0544C/SP. Include paragraph K and the IDT toll-free number 800-908-4490.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (3) The CIS image(s) of Form 14039, police report, and/or correspondence are an exact copy of the documents included in the CIS case previously worked, The documents include dates (i.e., signature date, IRS received date stamp, fax date/time stamp, etc.) that indicate the documents were signed or received after the date the previous case was closed,
    • Input a CIS case note indicating the CIS images are duplicates.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • Issue a closing Letter 4674C/SP advising the taxpayer their identity theft issue was previously resolved. Include the IDT toll-free number 800-908-4490.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (4) The CIS image(s) of Form 14039, police report, and/or correspondence provide new/additional information that does not change the determination made, The new/additional information includes dates (i.e., signature date, IRS received date stamp, fax date/time stamp, etc.) that indicate the documents were signed or received before the date the previous case was closed,
    • Input a CIS case note indicating the CIS images provide new information that does not change the previous determination made.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • If an acknowledgement letter was issued after the original CIS case was closed, send an IRS apology Letter 0544C/SP. Include paragraph K and the IDT toll-free number 800-908-4490.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (5) The CIS image(s) of Form 14039, police report, and/or correspondence provide new/additional information that does not change the determination made, The new/additional information includes dates (i.e., signature date, IRS received date stamp, fax date/time stamp, etc.) that indicate the documents were signed or received after the date the previous case was closed,
    • Input a CIS case note indicating the CIS images provide new information that does not change the previous determination made.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • Input TC 290 .00 with RC 139 and HC 3. Use HC 4 if the module reflects a credit balance that should not be refunded.

    • Issue a closing Letter 4674C/SP advising the taxpayer their identity theft issue was previously resolved. Include the IDT toll-free number 800-908-4490.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (6) The CIS image(s) of Form 14039, police report, and/or correspondence provide new/additional information, Consideration of the new/additional information supports changing the determination,
    • The case cannot be worked as previous action.

    • Work the case following normal IDT procedures.

  2. When it appears the identity theft issue was previously worked and the CIS images include one tax return, refer to the table below to determine the appropriate actions:

    Note:

    Multiple CIS images may be present for correspondence, charge outs, etc., in addition to the tax return.

    If And Then
    (1) The return in your case is an exact copy of the return in the original case, The account was previously adjusted to the valid return figures,
    • Input a CIS case note indicating the account was previously adjusted.

    • Verify all IDT indicators have been addressed. Input any necessary closing indicators, as appropriate.

    • Verify credits remaining on the module have been addressed (i.e., will refund systemically, credit dump, offset to balance due, etc.).

    • Verify the taxpayer will receive an appropriate closing letter based on the case actions previously taken. If an appropriate closing letter was not issued, send a closing letter providing any information the taxpayer did not previously receive.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (2) The return in your case is the result of a document request, The account was previously adjusted to the valid return figures using a different image of the same return or TRDBV information,
    • Input a CIS case note indicating the account was previously adjusted.

    • Verify all IDT indicators have been addressed. Input any necessary closing indicators, as appropriate.

    • Verify credits remaining on the module have been addressed (i.e., will refund systemically, credit dump, offset to balance due, etc.).

    • Verify the taxpayer will receive an appropriate closing letter based on the case actions previously taken. If an appropriate closing letter was not issued, send a closing letter providing any information the taxpayer did not previously receive.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (3) The return in your case is an additional return received from the valid taxpayer, The returns are reporting the same figures and the account was previously adjusted to the valid return figures,
    • Input a CIS case note indicating the account was previously adjusted.

    • Verify all IDT indicators have been addressed. Input any necessary closing indicators, as appropriate.

    • If there is a -A Freeze, input TC 290 .00 with RC 139 and HC 3. Use HC 4 if the module reflects a credit balance that should not be refunded.

    • Verify credits remaining on the module have been addressed (i.e., will refund systemically, credit dump, offset to balance due, etc.).

    • Verify the taxpayer will receive an appropriate closing letter based on the case actions previously taken. If an appropriate closing letter was not issued, send a closing letter providing any information the taxpayer did not previously receive.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (4) The return in your case is an additional return received from the valid taxpayer, The returns are reporting different figures,
    • The case cannot be closed as previous action.

    • Work the case following normal IDT procedures.

    • If the additional return was filed to amend the figures reported on the valid taxpayer’s original return, see IRM 25.23.4.10.13, Amended Returns and Identity Theft (IDT).

  3. When it appears the identity theft issue was previously worked and the CIS images include multiple tax returns, the case cannot be closed as previous action. Work the case following normal IDT procedures.

    Exception:

    When all returns included in the CIS images are the result of document requests, follow procedures in paragraph (2) table scenario (2) above. If the account has not been adjusted to the valid return figures, the case must be worked following normal IDT procedures.

  4. When it appears the identity theft issue was previously worked and the CIS image is a transcript, refer to the table below to determine the appropriate actions:

    If And Then
    (1) If the transcript is the result of an unresolved credit remaining on the module, The credit is no longer on the module,
    • Input a CIS case note indicating the credit was previously resolved.

    • If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

    • If a TC 971 AC 522 WI FA ALTRD is present, reverse it with a TC 972 AC 522 WI FA IRSADM.

    • Update your IDRS control with the activity "PRVACTN" .

    • Link the case to the original CIS case and close.

    (2) If the transcript is the result of an unresolved credit remaining on the module, The credit has not been addressed,
    • The case cannot be closed as previous action. Follow procedures in IRM 25.23.4.6.6.2, Credit Transcripts Resolution, to correct the account.

    (3) If the transcript is related to prior RIVO involvement,
    • The case cannot be closed as previous action.

    • Follow procedures in IRM 25.23.4.6.6, Credit Transcripts - IDT6/IDS6, to determine the appropriate actions to take.

Identity Theft (IDT) Cases Requiring Special Treatment (Operations Assistance Requests (OARs) and Identity Theft Assistance Requests (ITARs)

  1. Refer to guidance in the following subsections to process OARs, including those OARs associated with unprocessed original returns, and ITARs.

  2. OARs may be Economic Burden cases (Criteria 1-4), or Systemic Burden cases (Criteria 5-7 that meet the conditions in IRM 13.1.16.16.3.1, Criteria 5-7 Identity Theft Cases Not Eligible for Referral to IPSU). For Criteria 5-7, accept TAS’ determination whether it should be submitted as an OAR or an ITAR.

  3. For OARs in Criteria 5-7 that are not marked "Expedite" , follow normal procedures for accepting and working the OAR, and send an email with the OAR number to the IDTVA P&A analyst assigned to the TAS/OAR/TAO program per the IDTVA Hub site. IDTVA P&A will work with ITVA HQ on a tracking project for these OARs.

    Note:

    OARs in Criteria 5-7 not marked as "Expedite" will not be rejected.

Identity Theft (IDT) Expedite Operations Assistance Requests (OARs) - (Cases that Meet Economic Burden Criteria 1-4 and Contain Unprocessed Original Returns; TC 976 Documents) - Austin IDTVA-A ONLY

  1. TAS will route Expedite Economic Burden Criteria 1-4 OARs (including Spanish) to the Austin IDTVA-A Adjustments TAS Liaison if they meet one of these conditions:

    • There is an unprocessed original return (no TC 976) that was sent directly to TAS.

    • There is a return on CIS but no TC 976 posted and the TC 150 was not filed by the SSN owner.

    • There is no TC 976, but there is a TC 977 generated by a TC 971 AC 010, and the taxpayer’s original return is on CIS and has no valid return DLN on it.

      Caution:

      If a TC 977 posted with a DLN and the information has posted to CC RTVUE and TRDBV instead of a TC 976, then the case can be worked by any IDT site. These returns have gone through processing.

      Caution:

      These procedures are not intended for valid returns moved to MFT 32 in error.

  2. This procedure is limited to cases requiring expedite processing due to economic burden. All other IDT cases will be routed using established procedures.

  3. TAS will continue to complete the preliminary research on these cases before they are routed and will ensure ALL the following criteria are met:

    • The issue is ID theft

    • The OAR is a Criteria 1-4 Economic Burden Case

    • The case contains an unprocessed original return with the case as described above. (The TC 150 return was not filed by the SSN owner and no TC 976 posted)

    • All other preliminary research is completed

    • The unprocessed return has an IRS received date stamp when submitting to IDTVA-A, or is received in IDTVA-A within one day of receipt in TAS. All required documentation must be attached. If there is no IRS received date stamp, the date the OAR is received by Austin IDTVA-A will become the IRS received date for the return.

    • If the return is already on CIS, the received date will be the date the return was received in ICT

  4. Before processing the case, employees will follow normal procedures to determine CN ownership.

  5. If the case does not meet IDT criteria, per IRM 25.23.4, IDTVA Paper Process, or the OAR should have been sent to an area outside of the IDTVA Directorship, the employee will reject the OAR back to the assigned TAS caseworker per the IDTVA SLA Addendum and complete page 2 explaining why the OAR is being rejected.

  6. If the case is complete and CN ownership has been validated, employees should adjust the account per procedures in IRM 25.23.4, IDTVA Paper Process. Please update the ASED as required.

  7. The Austin IDTVA-A Directorate will work these cases and follow specific guidance provided by SP Accounting to process the manual refund, per guidance in IRM 21.4.4.3, Why Would A Manual Refund Be Needed, and the following:

    • If there is no IRS received date stamp, the date the OAR is received by Austin IDTVA-A will become the IRS received date for the return.

    • A copy of the unprocessed return, depending on your determination, will be submitted along with an IDRS print to show the credit.

    • IDTVA-A will send the original return to SP per local procedures, to expedite the processing of the TC 976 document.

    • IDTVA-A will monitor the case for additional closing actions needed (i.e., the posting of the TC 976 that will generate a -A freeze and the posting of the TC 841/TC 840).

Normal Operations Assistance Request (OAR) Processing

  1. IDTVA accepts OARs related to IDT Accounts, IDT Compliance, Fraudulent Return Requests (FRR), and Return Preparer Misconduct (RPM) per the IDTVA SLA Addendum. IDTVA also accepts OARs for other issues if there is an open or closed IDRS control for an IDTVA employee.

  2. IDTVA employees will follow OAR guidance in IRM 21.1.3.18.1, Operations Assistance Requests (OARs) Accounts Management Guidelines, to reject or reroute an OAR that is sent to IDTVA in error. Complete Section VI of Form 12412, Operations Assistance Request, when rejecting or returning an OAR to TAS. The IDTVA SLA Addendum also provides guidance on communication with TAS, translation of documents, and other aspects of routing OARs.

  3. TAS should submit OARs through group email boxes or fax numbers, not by sending emails to individual employees. If an OAR is emailed to an individual employee, accept the OAR, but provide feedback to the TAS employee and their manager about the proper routing of OARs.

  4. TAS should also provide a translation or summary of any documents not in English. If untranslated documents are submitted with an OAR, accept the OAR, but contact the TAS employee for a translation or summary. If necessary, ask for an extended completion date.

  5. If the OAR does not list the research completed, the findings of the research, or the action requested, return the OAR to the TAS employee for proper completion. If necessary, ask for an extended completion date.

  6. If the OAR is complete and has not been scanned as a CIS image, Form 12412 and all associated documents must be scanned into CIS upon receipt. If a Form 14039 is attached, update with TC 971 AC 522 UNWORK and send an acknowledgement letter to the taxpayer if those actions have not already been taken.

  7. When assigning IDTVA Specialty Function (Compliance) OARs on CIS, follow the table below.

    If And Then
    (1) A paper OAR is received in IDTVA-A inadvertently, There is no case open in CIS that should be routed to IDTVA Specialty Function (Compliance), Assign the OAR to the Functional TAS Coordinator on CIS using Case Priority Code 1 and appropriate Category Code.

    Note:

    Be sure all supporting information is on CIS before assignment.

    (2) A paper OAR is received in IDTVA-A inadvertently, There is a CIS case previously assigned to IDTVA Specialty Function (Compliance), Link the OAR to the open Compliance case and assign the OAR to the Functional TAS Coordinator, using Case Priority Code 1.
    Functional TAS Coordinator IDRS numbers are posted in the IDTVA ATAO shared folder.

  8. The priority for working OARs is as follows:

    1. Criteria 1-4 marked "Expedite"

    2. Criteria 5-7 marked "Expedite"

    3. Other Criteria 1-4

    4. Other Criteria 5-7

  9. When completing actions required to resolve an Operations Assistance Request (OAR), IDTVA will complete any required adjustments and prepare required forms for Submission Processing functions, including Accounting, as appropriate. The forms will accompany the completed Form 12412, Operations Assistance Request, to TAS. TAS will open a new OAR to the SP function and forward the forms for processing.

  10. Accounts adjusted during the completion of an OAR will be monitored for unpostable transactions. Unpostables on OARs will be corrected within 3 days of identification.

  11. CIS OAR cases must be closed with the appropriate functional category code. Paper OARs must be retained for 90 days after completion.

Resolving Identity Theft Assistance Requests (ITARS) - Receipt of Form 14103 Referrals (AM IDTVA Sites ONLY)

  1. CSR/TE will receive a Form 14103, Identity Theft Assistance Request (ITAR), referral from an IDTVA-IPSU CSR (Andover or Fresno) when they are working to resolve a tax related issues involving IDT regardless if there is an open control on IDRS or AMS on the case.

  2. IDTVA-A 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-IPSU). IDTVA Specialty Functions employees can identify cases by the presence of Priority Code 1.

  3. The Form 14103 MUST be acknowledged within 5 business days via secure email or by entering a Case Note on the linked cases on AMS/CIS. See IRM 25.23.2.2.2, Required Case and History Notes, for guidance regarding IRM required, AMS narratives and CIS Case notes.

    Note:

    If responding by secure email, you must include your full name (first and last) as well as your standard employee identifier (SEID).

  4. Identity theft cases referred with the Form 14103 are considered priority (like a TAS OAR) and must be worked accordingly.

  5. Review Section IV, Specific Assistance Requested, of the Form 14103 and determine whether the recommended action is appropriate and the requested completion date is reasonable.

    If Contact the IDTVA-IPSU CSR noted in Section II of the Form 14103 either by secure email or phone to
    (1) There are questions related to the recommended action provided by the IDTVA-IPSU CSR, Clarify, discuss and understand the recommended action and agree to the recommended completion date, enter CIS case note, "COMPLETION DATE ACCEPTED -MM/DD/YYYY" .
    (2) The requested completion date cannot be met, Negotiate a completion date based on the process(es) required to resolve the issue and enter in Box 4 of Section IV of the Form 14103. The function and IDTVA-IPSU CSR should reach an agreement on the substantive case issue, recommended actions and follow-up and completion dates. Once an agreement is reached on a new completion date, enter CIS case note, "NEW COMPLETION DATE - MM/DD/YYYY" .

  6. The CSR/TE assigned to the tax related issue has the responsibility for providing the taxpayer with official closing documents as directed in IRM procedures and providing copies to the AM IDTVA-IPSU CSR.

    Note:

    Sites not specialized in IDT receiving a Form 14103 will perform the IRM required preliminary research per IRM 25.23.4.6, Research, Actions and Complete Case Analysis - Overview, when appropriate, reassign the case to the IDT holding number, per the Accounts Management Site Specialization Temporary Holding Numbers Listing, located on SERP. Also change the Category Code to IDT9/IDS9.

  7. The IDTVA employee is required to provide a status update every 30 days to AM IDTVA-IPSU. The status update can be made by:

    • Sending a secure email to AM IDTVA-IPSU CSR, or

    • Entering a Case Note on the linked CIS cases providing a status update ex: "ADDITIONAL INFORMATION FROM TAXPAYER NEEDED, LETTER 5064C ISSUED" , or; "TC 150 REQUESTED FROM FILES," etc. By entering CIS case notes with periodic and required status updates, it assists the CSR in responding to phone inquiries from the taxpayer and by providing a better status update on their IDT related case, or

    • Sending a fax/EEFax (if either of the two options above is not available).

      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 the AM IDTVA-IPSU CSR.

      Exception:

      This is not applicable to IDIX cases or IDTVA Specialty Functions cases

  8. Once the tax related issue is resolved, and all adjustment actions have been input, the IDTVA employee will return the Form 14103 to the IDTVA-IPSU CSR with Section V and VI completed via CIS or fax/EEFax when CIS is not available. Enter CIS case note, "FORM 14103 SECTION V AND VI COMPLETED" . Also change the Category Code to IDT9/IDS9.

    Exception:

    This is not applicable to IDIX cases or IDTVA Specialty Functions cases.

Collection Activity - Form 14394/13794

  1. Form 14394, Identity Theft/RPM Case Collection Alert, is used to suspend/resume collection activity. It is critical that taxpayers are not harmed while IDT claims are being considered.

    Form 14394 has two purposes:

    • To suspend collection activity while IDT claims or issues are being processed, or

    • To resume collection activity, reinstate an installment agreement, or place in Currently Not Collectible (CNC) status, if there is a balance due when all IDT claims or issues have been resolved.

    Note:

    If a Form 14394 was not sent upon receipt of the IDT claim and you will be completing the case that same day, only send one Form 14394. Form 14394 is not required if the account is not in Master File or Service Center collection status 03, 22, 24, 26, or 58.

    Caution:

    A second Form 14394 is not required if there is no tax balance, only penalty and interest on the account.

  2. Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien, is used to release a lien on property and rights to property of a potential IDT victim. The decision to complete a Form 13794 is completely separate from the Form 14394.

    • Input as much information as possible regarding the abatement. You may include specific details such as the date the lien was satisfied or resolved, payment information, and/or a reminder to abate the associated TC 360 lien.

    Note:

    The forms should be completed upon receipt, or at the earliest time possible.

  3. When a Form 14394 or Form 13794 is completed for an open CIS case, the form must be attached as a .pdf. Input a CIS case note describing the action(s) taken to address collection activity.

Collection Activity - Form 14394

  1. To ensure the taxpayer is not being harmed from a levy, the following items require action:

    1. Master file or service center collection status 03, 22, 24, 26, or 58

      Note:

      Input a TC 470.

    2. FPLP, AKPFD, MTLP, SITLP: The case has been in status 22, 24, or 26 AND there is a balance due AND has a TC 971 AC 060-FPLP (Federal Payment Levy Program) or TC 971 AC 601-AKPFD (Alaska Permanent Fund Dividend Levy Program) or TC 971 AC 602-MTLP (Municipal Tax Levy Program) or TC 971 AC 600-SITLP (State Income Tax Levy Program) or TC 670 (Subsequent Payment) DES-PYMT-CD>PC 05 (levy) or 20 (SITLP).

    3. Active Levy: Taxpayers indicate they have an active levy against them. Levy payments will have a TC 670 DPC 05.

    4. TC 971 with literals "FPLP" (Federal Payment Levy Program): Cases subject to the FPLP will have a TC 971 AC 062, and levy payments will have a TC 670 DPC 18 or DPC19.

  2. If the case did not originate from IDTVA-ACSS, verify a Form 14394, Identity Theft/RPM Case Collection Alert, was sent to IDTVA-ACSS. If IDTVA-ACSS was not notified, follow instructions for issuing Form 14394 as indicated on the form.

    Reminder:

    The Form 14394, Identity Theft/RPM Case Collection Alert, should be completed upon receipt, or at the earliest point possible.

    Exception:

    Form 14394 is not required to be completed for cases currently being worked by IDTVA-ACSS. The employee working the case will address collection activity, as needed.

  3. If the collection status is 26 and the case did not originate from the field, verify a Form 14394 was sent to the Revenue Officer (RO). If the RO was not notified, follow instructions for issuing Form 14394 as indicated on the form. The RO will stop collection activity for the years in question. Do NOT send the case. The determination should be made by the function. You can locate the RO by searching SERP, click the Who/Where tab, then click RO by TSIGN/ZIP/STATE. Enter the first six digits of the RO assignment number. Fax/EE-Fax to the number provided for the RO group.

  4. The following transactions indicate a reversal or block from the Federal Payment Levy Program. TC 972 AC 060 (module reversed out of FPLP), TC 971 AC 061 (module blocked from FPLP). If these transactions are present and the only collection action identified is FPLP, no action is necessary and Form 14394 is not required.

  5. Routing of the Form 14394 is required to be documented in a CIS or AMS case note. The case note should include the suggested verbiage as follows:

    1. "Form 14394 sent to suspend collection activity" , or

    2. "Form 14394 sent to continue collection activity, reinstate an installment agreement, or Currently Not Collectible (CNC)" .

  6. If the case is determined not to be IDT (NOIDT), notify ACSS, via Form 14394, to resume collection activity. Check the appropriate boxes indicating that the IDT issue has been resolved.

Collection Activity - Form 13794 Additional Actions Required - Lien

  1. If there is a TC 582 (Lien Indicator) or TC 360 (Lien Fee Assessment) posted and a full abatement will reverse the tax liability to zero, prepare Form 13794, Request for Release, Partial Release, of Notice of Federal Tax Lien. Form 13794 should be completed and forwarded to the Collection Advisory.

    Note:

    Only Collection Advisory has the authority to reverse lien fees (TC 360) on accounts impacted by IDT.

  2. Take the following actions when completing the Form 13794:

    1. Input as much information as possible regarding the abatement

    2. Include the Serial Lien Identification (SLID) Number from the Notice of Federal Tax Lien, if available

    3. Check box 9 indicating "Erroneous Lien"

    4. Include "ID Theft" in the "Reason" box

    5. Fax/EE-Fax or e-mail Form 13794 to the Collection Advisory Unit for the state where the taxpayer currently resides

      Note:

      If you do not have access to the Automated Lien System (ALS), include a note asking Advisory to complete the SLID and TSIGN.

  3. Collection Advisory contacts can be found under the Who/Where tab on the SERP Home Page on the Advisory Units Contact List.

    Reminder:

    When adjusting an IDT account where a NFTL was filed on the account (TC 582 posted) and a tax liability remains after the account has been adjusted the NFTL will remain in place. The NFTL will be systemically released when the account balance is satisfied (zero).

  4. If the taxpayer requests the Notice of Federal Tax Lien (NFTL) be released, refer the taxpayer to Publication 1450,Instructions for Requesting a Certificate of Release of Federal Tax Lien, to submit a written request for Certificate of release of erroneously filed notice of tax lien. Once the request is received, forward the request to Advisory with an explanation regarding the release situation. Advisory will determine whether to grant such a request on a case-by-case basis.

  5. The Advisory Unit will review the Notices of Federal Tax Lien (NFTL) filed against the taxpayer using the Automated Lien System (ALS). If all modules on the NFTL are satisfied, Advisory will request the release of the NFTL as an erroneously filed NFTL per IRC 6326(b). The release of the NFTL will reverse the TC 582. Advisory will abate the TC 360 associated with the NFTL filing and issue Letter 544,Letter of Apology - Erroneous Filing of Federal Tax Lien, to the taxpayer.

    Note:

    Routing of the Form 13794 is required to be documented in a CIS or AMS case note.

Collection Activity - Resume Collection Actions

  1. If the case is in Service Center status 03, 22, 24, 26, or 58, resume collection activity upon completion of determination and/or case actions when:

    • A "NOIDT" determination is made. Notify ACSS via Form 14394 to resume collection activity. Check the appropriate box indicating that the "NOIDT" determination has been made and there is a remaining tax balance due. Input a TC 472 if a TC 470 was previously input.

    • The action taken will result in a tax balance due or balances due on non-IDT years. Notify ACSS via Form 14394 to resume collection activity. Check the appropriate boxes indicating that the account has been resolved and there is a remaining balance due. Input a TC 472, if a TC 470 was previously input.

      Caution:

      A second Form 14394 is not required if there is no tax balance, only penalty and interest on the account.

Requests for an Appeal

  1. There are no appeal rights associated with a No IDT determination. Taxpayers may provide additional information for consideration if they believe their claim is valid. New information received must be considered. If, after review, the new information does not support changing the original determination, see IRM 25.23.4.10.14, Identity Theft (IDT) - Previous Action. When the new information will result in a determination of IDT, work the case following normal procedures.

  2. Taxpayers have various appeal rights that can be requested on cases that were worked within Compliance. The different appeal rights are as follows:

    • Non-docketed cases – A taxpayer can request a conference with Appeals on an examination that is pre-Notice of Deficiency when the taxpayer disagrees with Exam’s determination.

    • Docketed cases – A taxpayer can petition the Tax Court based upon a Notice of Deficiency when a taxpayer disagrees with an ASFR, AUR, or Exam determination. The taxpayer is generally afforded an Appeals conference prior to the trial date before the Tax Court.

    • Collection Due Process (CDP) cases – A taxpayer is entitled to a CDP hearing when the taxpayer timely requests one, there is unpaid tax, and the taxpayer is disputing the enforced collection action (may be an ASFR, AUR, Exam assessment case).

    • Reconsideration Appeal – A Compliance assessment was made and the taxpayer submitted a request for reconsideration which was denied, except for Return Preparer Misconduct cases. See note under IRM 25.23.4.13.2, Taxpayer Requests a Reconsideration Appeal of an Invalid Identity Theft Determination. A taxpayer can request his/her case be reviewed by Appeals.

  3. When taxpayers file an appeal, the case is normally routed to Appeals for consideration. Appeals will review the cases based upon the facts and circumstances of the case. Appeals gives full, fair, and impartial consideration to the merits of each new issue a taxpayer raises once the originating function has had an opportunity to examine the issue.

  4. Cases with Appeals involvement may be identified as follows:

    1. A -L or -W freeze code (a TC 520 with a closing code 72, 76 or 77) is present on the account.

    2. Cases that are returned from Appeals.

Cases with -L or -W Freeze Codes

  1. Any IDT or RPM case that contains a -L or -W freeze should be reviewed on IDRS to determine if the case is in Appeals status. See Document 6209, IRS Processing Codes and Information, Section 13, Appeals and TE/GE, Status Codes for Appeals.

    Reminder:

    A TC 520 with a closing code 72, 76 or 77 indicates the case is in Appeals status.

  2. Once the Appeals Status Code is identified, follow the chart below for the proper handling of the case:

    If the Case is AIMS Status: And Then
    (1) 80 – Non Docketed The taxpayer has provided sufficient documentation to determine whether the taxpayer is a victim of Identity Theft,
    • Review all taxpayer documentation and evaluate the claim following normal procedures.

    • Perform all necessary account actions, including adjustments.

    • Inform the taxpayer of the outcome.

    • Prepare Form 10467, Appeals Division Feedback Report and Transmittal Memorandum with the determination and all actions taken. Include a copy of the letter issued to the taxpayer that reflects the determination or a statement on Form 10467 when the CP 01 will serve as the closing letter.

      Note:

      Form 10467 must include an explanation when the CP 01 will not be issued and a closing letter is not being sent.

    • Forward Form 10467 to Appeals via secured e-mail to: *AP Inquiries. See Exhibit 25.23.4-14, Format for Emails to Appeals, for additional information.

    • Close your CIS case.

    (2) Status 80 – Non Docketed The taxpayer has not provided sufficient documentation to determine whether the taxpayer is a victim of Identity Theft,
    • Review all taxpayer documentation and evaluate the claim, following normal procedures.

    • Perform all necessary account actions.

    • Input TC 290 .00 with a Reason Code 131 or 139, as applicable. Use a Hold Code 3 and Source Code 1 on the adjustment.

    • Inform the taxpayer of the outcome.

    • Prepare Form 10467 with the determination and all actions taken. If the taxpayer does not respond to a request for information or if their submitted information is incomplete, notate on the Form 10467 what documentation is still needed for a determination to be made. If the claim is denied, include the reason for the denial. Include a copy of the letter issued to the taxpayer reflecting the determination.

    • Forward Form 10467 to Appeals via secured e-mail to: *AP Inquiries. See Exhibit 25.23.4-14, Format for Emails to Appeals, for additional information.

    • Close your CIS case.

    (3) Status 82 Docketed Appeal (TC 520 with a closing code 72). Regardless of whether the taxpayer has provided sufficient documentation to determine whether the taxpayer is a victim of Identity Theft,
    • Review all taxpayer documentation and evaluate the claim.

    • Do not adjust the account.

    • Do not issue a closing letter. Appeals will address the determination with the taxpayer.

    • Prepare Form 10467 with the determination and all actions taken. If the taxpayer does not respond to a request for information or if the submitted information is incomplete, notate on the Form 10467 what documentation is still needed for a determination to be made. If the claim is denied, include the reason for the denial.

    • Forward Form 10467 to Appeals via secured e-mail to: *AP Inquiries. See IRM 25.23.10-1, Format for Emails to Appeals, for additional information.

    • Close your CIS case as MISC.

    Note:

    Cases currently in AUR or ASFR inventory will be worked by AUR or ASFR, as applicable, following this guidance and not transferred to IDTVA Exam as outlined in Exhibit 25.23.4-5, IDTVA Routing Matrix.

    Note:

    If a taxpayer is alleging IDT on multiple years, Appeals will only address the year under its jurisdiction. The tax years not under Appeals jurisdiction must be worked following normal procedures.

  3. If the case is Collection Due Process (CDP), identified by a TC 520 with a closing code of either 76 or 77, follow the directions for AIMS status 80 Non-docketed from the table in (2) above.

Taxpayer Requests a Reconsideration Appeal of an Invalid Identity Theft Determination

  1. If a taxpayer’s IDT claim is determined to be invalid and the taxpayer indicates he/she wants his/her case to be reviewed by the Appeals Function, the taxpayer must show he/she made an attempt to document his/her entitlement through the reconsideration process and his/her request had been denied. All evidence provided by the taxpayer must be reviewed by the CSR/TE before the referral to Appeals. Refer to IRM 8.2.1.5, Returning a Case to Examination - ATE, and IRM 8.2.1.6, Preliminary Review of a Case - ATE. For these cases and any case previously worked by Appeals, complete the steps below before sending the case to Appeals:

    1. Close the CIS case as a route to Appeals. Input a TC 470 to ensure the taxpayer is not subjected to collection activity pending the appeal of the IRS determination.

    2. Send Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office to the taxpayer advising the case is being transferred to Appeals. Include the following special paragraph, "As you requested, we are transferring your case for a hearing with an independent appeals officer. During the time your case is in Appeals, we will not pursue any collection activity on your account. However, you should know that interest and applicable penalties will continue to accrue if there is still a balance due after the Appeals decision. Therefore, you might want to make voluntary payments during the time Appeals is considering your case to minimize any interest or penalties if you ultimately do owe."

    3. Forward the case to the appropriate Appeals Office per the Appeals Routing guidelines in (4) below.

      Note:

      Denied RPM reconsideration claims should not be referred to Appeals if the taxpayer disagrees with the determination. On denied RPM claims, the taxpayer’s only right is to file suit to recover tax, penalties, or other amounts with the United States District Court that has jurisdiction or with the United States Court of Federal Claims.

  2. Complete Form 3210, Document Transmittal, and include the following information:

    • Sender’s full name, Stop Number, Mailing Address and Phone Number.

    • A full description of items being sent.

    • The taxpayer’s name and SSN.

    • Tax period(s) of cases being sent.

  3. Appeals Case Building Guidelines - The documents below may have to be requested from files or printed from CEAS, the AUR system, or AMS. When building the case include the following:

    1. Taxpayer’s original return

    2. Original Compliance Adjustment

    3. Report(s) (example - Form 4549 or CP 2000)

    4. Reconsideration Adjustment (if reply to Recon disallowance)

    5. Work papers

    6. Taxpayer Correspondence

    7. Letters; Initial contact, 30-Day, CP 2000, etc.

    8. Statutory Notice of Deficiency

    9. IDRS Research

      Note:

      If requesting administrative files, make two attempts three weeks apart (the second request should be a special search). If the administrative file is not received from Files three weeks after the second request, forward without the requested documents. Attach prints of ESTAB requests input and any Charge Outs from Files to verify the documents were requested.

  4. Appeals Routing Guidelines - Ensure cases are routed to the correct Appeals office as identified by the Appeals Office code. Consult the Appeals website at Appeals Case Routing for case routing addresses. See IRM 4.13.7-5, Appeals Account Resolution Specialist.

    Note:

    Communication between the referring function and Appeals that address the strengths and weaknesses of the issues and positions of the parties, accuracy of the facts, credibility or cooperation of the taxpayer, etc., are prohibited unless the information communicated has been shared with the taxpayer. However, communication between the referring function and Appeals relating to ministerial, administrative, or procedural matters are permissible. Refer to sections 2.02(6) and 2.03(3) of Rev. Proc. 2012–18, Ex Parte Communications Between Appeals and Other Internal Revenue Service Employees, for additional discussion regarding ex parte communication with Appeals

Cases Returned from Appeals

  1. If a case originated in a campus, the taxpayer petitioned Tax Court or requested an Appeals hearing, and the IDT/RPM allegation is a new issue or new information was provided, Appeals may return cases to IDTVA to review and address the IDT or RPM allegation, provided that there is sufficient time remaining on the statute of limitations.

  2. Appeals will review the case to determine whether the taxpayer has provided new information that was not previously shared or if the taxpayer is alleging an IDT/RPM claim for the first time. It is considered a new issue if the taxpayer did not raise the IDT/RPM allegation during the normal process.

  3. Appeals will retain jurisdiction of docketed or CDP cases when forwarding to IDTVA. Appeals will release jurisdiction back to IDTVA on non-docketed cases.

  4. Appeals will send via e-mail cases where the taxpayer has submitted new information or raised a new issue in Appeals to the appropriate function, as outlined below

    1. RPM cases will be routed to *W&I IDT:KC:SPEC-EXAM

    2. IDT cases will be routed to *WI EEF IDTVA OP3 D3 T306

  5. All referrals from Appeals will contain Form 10467, Appeals Division Feedback Report and Transmittal Memorandum, and any information the taxpayer provided to Appeals. The Form 10467 will provide sufficient information as to whether jurisdiction was released or retained by Appeals.

  6. All referrals must be scanned into CIS, if the documentation was not previously scanned. The correct category code and OFP codes must be used when creating a case or sending the information to be scanned.

  7. Once the case has been reviewed and a determination made, all docketed and CDP cases received from Appeals must be returned to the originating employee identified on the Form 10467.

Non-Docketed Cases Returned from Appeals
  1. Appeals will return non-docketed cases to IDTVA when Appeals determines the IDT or RPM claim is a new issue or that the taxpayer provided new information that was not previously considered, if there are at least 210 days remaining on the statute of limitations.

  2. All returned non-docketed cases should be scanned and assigned directly to a CSR/TE. The assigned CSR/TE will review the documentation provided by Appeals and determine if the IDT or RPM allegation is valid following normal procedures.

  3. If the campus cannot work the case (referred in error) or the IDT or RPM was previously addressed by IDTVA:

    1. Complete the explanation section of the Form 10467, Appeals Division Feedback Report and Transmittal Memorandum. Ensure to document the reason the case is being returned, (e.g., previously adjusted) and annotate the previous determination.

    2. Return case and Form 10467 back to the originating Appeals employee.

    3. Close the CIS case.

  4. Upon review of the case, if the taxpayer is determined to be a "Victim of IDT" , complete all account actions, including adjustments. Do not return the case to Appeals. Close following normal procedures.

  5. If the taxpayer is determined to be "Not a Victim of IDT" , document the determination on the Form 10467; do not return the case to the originating Appeals employee. Route the Form 10467 using the following link, Appeals Case Routing and the steps below:

    1. In the "To Appeals from External Sources" section, select the "Case Routing Addresses and Instructions" link.

    2. Click on "Spreadsheet Tool" and the Case Routing Guide will open up.

    3. Using the drop down button, select the "Campus Location" . Select the campus where the case originated and mail the case to the address provided.

      Example:

      If the case is an AUR case that originated in Austin (TC 922 DLN starts with 18), select "Austin" from the drop down menu in the "Campus Location" field.

Docketed Cases Received from Appeals
  1. On docketed cases where the IDT/RPM claim has not been considered, new information is received by Appeals not previously considered, or the IDT/RPM claim is considered a new issue, an Appeals Officer (AO) will forward the Form 10467 and information package to the appropriate IDTVA function via secured e-mail.

  2. Appeals will retain jurisdiction of the case. In docketed cases, time is of the essence. Any docketed cases received must be worked within 45 days of receipt, unless additional documentation is needed from the taxpayer. Review the documentation provided by Appeals and determine if the IDT/RPM allegation is valid following normal procedures.

  3. If additional documentation is needed and the 45 day time frame cannot be met, contact the Appeals Officer (AO) to reach a new response date. If the taxpayer does not reply to a request for additional information, do not deny the claim. Inform Appeals of the determination. The denial will be addressed by Appeals.

  4. If the case is determined to be IDT/RPM, "no account adjustments" will be input. Complete Form 10467 with sufficient information to determine the necessary account adjustments. Appeals will input the account adjustments based upon the settlement agreement from the Tax Court.

  5. Complete the explanation section of Form 10467, documenting the determination. The explanation should be explicit, outlining all documentation received, determination made, and any potential account adjustments.

    Example:

    On an allowed RPM determination, the following information must be documented:

    • List of documentation submitted by the taxpayer

    • Applicable RPM category code (i.e., TC 504 AC RPM 3)

    • Preparer Information

    • Refund trace results, if applicable

    • Items inflated by the preparer

    • Relief to be provided to the taxpayer – (i.e., refund in the amount of X should be released to the taxpayer).

    • Underreported income that remains underreported on the return as intended to be filed or items disallowed by Exam, if applicable.

    Example:

    The taxpayer was audited for filing status, exemptions, and Earned Income Credit. The taxpayer has substantiated 2 of the 3 exemptions being disallowed by Exam. Annotate which exemption is still in question.

  6. If the campus cannot work the referral package, (i.e., the IDT/RPM was previously worked by IDTVA or referred to IDTVA in error):

    1. Complete the explanation section of the Form 10467. Document the reason the case is being returned, (i.e., previously adjusted) and annotate the previous determination.

    2. Return Form 14067 to the originating Appeals employee via secured e-mail.

    3. Close the CIS case.

  7. If an RPM claim is denied and meets the criteria to be referred to Exam, do not send to Cat A. Clearly identify the RPM issues between the posted return and the return as intended to be filed on the Form 10467. Appeals will address the Cat A issues.

  8. If an IDT claim contains a return from the SSN owner that requires processing and meets the DIF Bypass Criteria, do not refer to Exam. Inform Appeals that the return from the SSN owner must be assessed.

  9. Docketed cases received from Appeals will be scanned into CIS, if the documentation was not previously scanned. The correct category code and OFP codes must be used when creating a case or sending the information to be scanned.

Collection Due Process Cases Returned from Appeals
  1. The Appeals Officer (AO) will forward Collection Due Process (CDP) referral packages to IDTVA via secured e-mail, when Appeals determines the IDT/RPM claim is a new issue or new information was received that was not previously addressed.

  2. The package will include documentation received in Appeals and Form 10467, Appeals Division Feedback Report and Transmittal Memorandum.

  3. Appeals will retain jurisdiction of the case. In CDP cases, time is of the essence. Any CDP cases received must be worked within 45 days of receipt, unless additional documentation is needed from the taxpayer.

  4. Review the documentation provided by Appeals and determine if the IDT/RPM allegation is valid following normal procedures.

  5. If additional documentation is needed, and the 45 day time frame cannot be met, contact the AO to reach a new response date. If no reply to requests for additional information, deny the claim and return to Appeals following normal procedures.

  6. If the case is determined to be IDT/RPM, all account actions and adjustments must be input prior to replying to Appeals. The explanation section of Form 10467 must be completed with the determination, all actions taken, and a copy of the closing letter to the taxpayer explaining the determination. If a CP 01 will serve as the closing letter, document Form 10467 with that information. Return the case to the originating Appeals employee via secured e-mail.

  7. If the campus cannot work the case, (i.e., the IDT/RPM was previously addressed by IDTVA or referred to IDTVA in error):

    1. Complete the explanation section of the Form 10467. Document the reason the case is being returned, (i.e., previously adjusted) and annotate the previous determination.

    2. Return Form 14067 to the originating Appeals employee via secured e-mail.

    3. Close the CIS case.

  8. If the RPM claim is denied and must be referred to Exam, forward the case to Cat A following normal procedures. Include a statement that the case is CDP and request that the case be returned to Appeals upon completion of the audit. Include the Appeals employee’s name so the case can be referred back correctly. Inform the Appeals employee of the referral to Exam and all actions taken.

Identity Theft (IDT) Cases Processed Incorrectly

  1. There may be instances when an employee incorrectly adjusted a case, or when the return was moved to MFT 32 in error. Actions should be taken immediately to resolve these issues. Follow procedures in IRM 25.23.4.14.1, MFT 32 Cases - Moved in Error, to correct the account.

  2. If it is necessary to reverse a TC 971 AC 501, TC 971 AC 506 or a TC 971 AC 522, refer to the applicable guidance as follows:

    • IRM 25.23.2.6.2,Manually reversing TC 971 AC 501

    • IRM 25.23.2.6.4,Manually reversing TC 971 AC 506

    • IRM 25.23.2.6.6,Reversing Unsupported Allegations of Identity Theft

MFT 32 Cases - Moved in Error

  1. If an IDTVA employee or another function’s employee made an incorrect determination to send a return to MFT 32, the employee who made the error should move the MFT 32 return to the MFT 30 if the following applies:

    • The MFT 32 was caused by SP and no additional account adjustments are needed to resolve the case.

    • The MFT 32 was caused by TPP/RIVO but you do not have -A freeze on the account, or an IDT claim from the TP that requires resolution.

    Note:

    To prevent additional delays to our customers, IDTVA employees can move MFT 32 cases back to MFT 30 when they are able to determine the correct CN owner and have a case in inventory that requires immediate attention.

    Caution:

    If the case was worked in an IDTVA Specialty Function, the case should be sent to the IDTVA Specialty Function employee for proper resolution.

  2. To refer the case, send a Form 4442, Inquiry Referral, to the employee that made the error based on the Form 4442 Referral Chart. The listing may not be all inclusive due to functional and/or organizational unit changes etc. Conduct the necessary research to determine the correct employee to refer the Form 4442. Refer to the Accounts Management Case Referral/Reassignment Listing, located on SERP.

  3. To resolve the case, refer to the table below and the additional instructions that follow.

    If And Then
    (1) The return posted to MFT 32 was filed by the valid taxpayer (current and immediately preceding year ONLY), There is no return present on MFT 30,
    • Move the valid return to MFT 30. See IRM 25.25.6.7.1, MFT 32 Reversal Procedures, and IRM 25.25.6.7.1.1, Taxpayer Protection Program (TPP) Assistors, Taxpayer Assistance Center (TAC) Assistors, and Identity Theft Victim Assistance (IDTVA) MFT 32 Procedures, for additional guidance.

    (2) The return posted to MFT 32 was filed by the valid taxpayer (current and immediately preceding year ONLY), There is a TC 150 return posted to MFT 30 that is an exact copy of the return moved to MFT 32,
    • Move the valid return to MFT 30. See IRM 25.25.6.7.1, MFT 32 Reversal Procedures, and IRM 25.25.6.7.1.1, Taxpayer Protection Program (TPP) Assistors, Taxpayer Assistance Center (TAC) Assistors, and Identity Theft Victim Assistance (IDTVA) MFT 32 Procedures, for additional guidance.

    • Update the MFT 30 ASED to reflect the received date of the valid taxpayer’s original return posted to MFT 32 if the received date is earlier than the received date of the return posted to MFT 30.

    • Input a CIS case note indicating the return posted to MFT 30 is a true duplicate of the return posted to MFT 32.

    • If the ASED was updated, notate the action and the IRS received date of the valid taxpayer’s original return.

    (3) The return posted to MFT 32 was filed by the valid taxpayer (AFTER Cycle 47 or archived deleted), There is no return present on MFT 30,
    • Follow IRM 25.25.6.8, Archived - Deleted Return Processing Procedures.

    (4) The return posted to MFT 32 was filed by the valid taxpayer (AFTER Cycle 47 or archived deleted), There is a TC 150 return posted to MFT 30 that is an exact copy of the return moved to MFT 32,
    • Do not take action to move the return posted on MFT 32 to MFT 30.

    • Update the MFT 30 ASED to reflect the received date of the valid taxpayer’s original return posted to MFT 32 if the received date is earlier than the received date of the return posted to MFT 30.

    • Input a CIS case note indicating the return posted to MFT 30 is a true duplicate of the return posted to MFT 32.

    • If the ASED was updated, notate the action and the IRS received date of the valid taxpayer’s original return.

    (5) The return posted to MFT 32 was filed by the valid taxpayer, There is a TC 150 return posted to MFT 30 that is not an exact copy of the return moved to MFT 320
    • Conduct thorough research to verify the taxpayer is not a victim of identity theft.

    • If you can determine the return was filed by the valid taxpayer, consider the return posted to MFT 30 as an amended or superseding return. Update the MFT 30 ASED to reflect the received date of the valid taxpayer’s original return posted to MFT 32 if the received date is earlier than the received date of the return posted to MFT 30.

    • Input a CIS case note indicating the return posted to MFT 30 is an amended or superseding return and the taxpayer’s original return posted to MFT 32.

    • If the ASED was updated notate the action and the IRS received date of the valid taxpayer’s original return.

    • If you determine the return posted to MFT 30 is an invalid return, resolve the case following identity theft procedures. See IRM 25.23.4.8.1.1, Identity Theft (IDT) with RIVO Involvement, for additional information.

    Note:

    When completing reversals, use the correct information provided in Exhibit 25.23.2-9, IMF Only TC 972 AC 506 Tax-Related, Reversal of Identity Theft Case Closure, IRS Identified, for your BOD/Function.

    • Correct the account on MFT 30, and monitor for the release of the -A freeze if the return being transferred from MFT 32 posts as a TC 976.

      Caution:

      Moving it back to the MFT 30 may cause the account to go unpostable 126-0 again. All unpostable conditions must be resolved before additional actions can be taken on the account. See IRM 25.23.4.10.8, Identity Theft (IDT) Cases/Transcripts with RIVO and/or TPP Involvement Resolution Tables, for additional information.

    • Correct the entity, as needed.

    • Notify the SSN owner that he or she appears to be a victim of IDT, if the notification was sent to the wrong filer.

      Note:

      If multiple returns were not received, the TP whose return moved in error may not be a victim of ID Theft. If this is the case, notification is not necessary.

Identity Theft (IDT) Adjustment Errors

  1. If you receive any type of correspondence that an SSN owner did not receive their refund, received an incorrect refund amount, or an incorrect balance due notice, because the case was worked incorrectly, (e.g., an employee failed to input a required TC 971 AC 850 causing a second direct deposit into the invalid taxpayer’s account), treat the case as priority work. Telephone assistors will send a Form 4442, per IRM 25.23.12.5.1, Telephone Inquiries Regarding Tax Related IDTVA Cases, paragraph 4. Also see chart below for additional guidance.

    Exception:

    If all IDT actions have been taken on the account but you discover through your research the refund was not released due to a -R freeze, you can release the refund.

    If Then
    (1) The case meets TAS criteria. See IRM 13.1.7.2, TAS Case Criteria, Follow IRM 21.1.3.18, Taxpayer Advocate Service Guidelines, to complete a referral. Prior to referring the case, review paragraph (1)(e) of IRM 13.1.7.3, Exceptions to Taxpayer Advocate Service Case Criteria.
    (2) The case does not meet TAS criteria, Reassign to the specific area based on the Accounts Management Case Referral/Reassignment Listing, located on SERP.

    Note:

    The listing may not be all inclusive due to functional and/or organizational unit changes etc., Conduct the necessary research to determine the correct employee to refer case.

Form 9409 Procedures - IRS/SSA Wage Worksheet

  1. When a social security number is used by someone other than the SSN owner for employment purposes, SSA must be notified to correct the earnings record for that SSN.

  2. While reviewing an IDT claim, verify the IRP data. When income is incorrectly reported under an SSN, Form 9409, IRS/SSA Wage Worksheet, must be completed and sent to the SSA.

    Note:

    The Form 9409 must be completed any time you identify, during your research, any wage income on IRP docs that should not be reported under the valid taxpayer’s SSN (The SSN Owner). This should be done for any type of identity theft (non-tax related or tax related).

    Note:

    Complete the Form 9409 based on who was paid the wages (primary or secondary).If the impacted taxpayer is the secondary taxpayer, ensure all history items are recorded under their TIN.

    Example:

    TY 2014 account contains TC 150 and TC 976 returns. The returns contain addresses from different states. An Invalid/Valid determination is made. Each return contains income that is verifiable. The TC 150 return will be moved to an IRSN and Forms 9409 will need to be completed for the Forms W-2 associated with the invalid return.

  3. Complete Form 9409 for wage income containing Social Security Wages only, except when:

    • The SSN has been TIN perfected.

    • The income is reported under an ITIN (that begins with "9" ).

    • The employer indicates that the information has been corrected with SSA (Form W-2C, Statement of Corrected Income and Tax Amounts).

    • The taxpayer has provided an SSA determination letter.

    • IRPTR data is no longer available.

    • Wages are reported beyond one year of the Date of Death (DoD).

    • A Form 9409 was previously completed for the income in question.

      Caution:

      When completing Form 9409, input the amount as a whole dollar figure. If necessary, round the income to the nearest whole dollar amount (i.e., $54,661.82 would be entered as $54,662.00). Make sure the form is complete (with special attention to Section B) indicating why the form is being sent to the SSA. This will prevent the form from being rejected and causing additional delays to our customers.

  4. If you have determined the valid taxpayer earned only a portion of the income on the wage document shown on CC IRPTR, and the amount reported is due to an act of fraud or IDT, complete Form 9409. In Section B, select Box 6, and input the amount the taxpayer reported for the wage amount.

  5. If allowing the wages on the ITIN holders return, prepare Form 9409, IRS/SSA Wage Worksheet, (for the SSN) to remove the information from the true SSN owner’s account.

  6. Prepare a Form 3210, Document Transmittal, and include the following information:

    • Sender’s full name, SEID, Stop Number, Mailing Address, Fax/EE-Fax Number and Phone Number.

    • Individually list each taxpayer’s last four digits of their SSN and their name control

    • Include a count of how many Forms 9409 are being sent for each SSN listed.

    • Tax period(s) of the Forms 9409.

    • In the remarks area include the total number of Forms 9409 that are being sent.


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    Note:

    Retain a copy of the entire package being sent until the SSA has acknowledged receipt of the package by returning a copy of the Form 3210.

    Note:

    Document CIS and/or AMS to show that Form 9409 was mailed to SSA and which income documents were removed.

    Exception:

    When the AMS Fill tool is used to prepare Form 9409, a case history containing information for all income being removed is automatically populated on AMS. A CIS case note indicating Forms 9409 were completed is required; however, documentation detailing each income item removed is not necessary when it has been populated in an AMS history item. Include language "see AMS for the payer information" , or similar verbiage. If Form 9409 is created for a secondary TIN, document AMS under that TIN.

    Note:

    Upon receipt of the Form 3210 from the SSA, document AMS with "3210- SSA Received XX/XX/XXXX." Retain the Form 3210 for one year.

  7. If after 60 days the Social Security Administration has not acknowledged receipt of the Forms 9409 by returning a copy of the Form 3210, resubmit them. Document AMS with the re-submission of the Forms 9409.

  8. If a Form 9409 was prepared and submitted to the SSA in error, take the following actions:

    • Fill in the taxpayer’s identifying information (SSN, Name, Address, etc.).

    • Complete Section A, with the same amounts used on the erroneously prepared Form 9409.

    • Check the corrected box in the upper right-hand portion of the Form.

      Note:

      Do not check any of the boxes in section B.

    • Complete the bottom portion of the form and submit the form as outlined in paragraphs (6) and (7).

    • Document CIS and/or AMS to show that a corrected Form 9409 was mailed to SSA and which income documents were revised.

Form 3245/3809 Reversals

  1. In certain circumstances, it may be necessary to reverse previous actions taken that debited the GL 1545 account with the posting of a TC 841 or TC 700 to the tax account. For example, a duplicate TC 841, actual credit has been returned to the module, etc.

  2. When it is determined by the originator or employee resolving a case that a TC 841 was initiated in error, a Form 3245, Posting Voucher - Refund Cancellation or Repayment, and Form 3809, Miscellaneous Adjustment Voucher, must be completed. The Form 3245 should be sent to Accounting to reverse the TC 841 with a TC 843 and the Form 3809 will be used to credit the GL 1545 account. Form 3245 and/or Form 3809 must include a brief explanation of the error and the DLN of the TC being reversed must be annotated on the forms. See Exhibit 25.23.4-2, Form 3245 Reversal, and/or Exhibit 25.23.4-3, Form 3809 Reversal, for proper annotations required for Form 3245/3809. In addition to this, 3 copies of Form 3809 and Form 3245 should be submitted when requesting a reversal and the originator should open a control base indicating "843 or 702 request" to prevent duplicate submissions to Accounting. Make sure the TC 841 to be reversed has posted to the taxpayer account before initiating the reversal action. Form 3245 and or/ Form 3809 should be forwarded to the Accounting function for numbering and journaling. See IRM 3.17.243.7.4, Duplicate Identity Theft (IDT) TC 841 or TC 700 Posting Identified by Originators, for additional guidance.

    Note:

    Form 3245 and/or Form 3809 must be complete and legible for processing or the forms will be rejected back to the originating location. A current TXMOD print must be attached, or the Form 3245/3809 will be rejected back to the originating location.

  3. If you identify multiple TC 700s that have posted to the account, input a TC 570 on the account to avoid erroneous refund(s).

    Note:

    When multiple TC 700s result in a refund, complete research is needed to determine the recipient. If it's an ID theft account, follow ID theft procedures. If the owner of the EIN/SSN benefited from the refund then follow erroneous refund procedures in IRM 21.4.5.6.1, Account Actions for Category D Erroneous Refunds.

  4. For proper routing, refer to Accounts Management Case Referral/Reassignment Listing located on SERP.

    Note:

    The Form 3245/3809 should be routed to the Service Center (SC) identified by the first 2 digits of the TC 841/700 DLN.

Preparing a Duplicate Form 3245 and Form 3809

  1. If it has been at least 4 weeks since submission of Form 3245 and Form 3809, and there is no evidence of the pending credit on the module, then resubmit the form and annotate the form(s) with "Potential Duplicate" at the top. Indicate potential duplicate on the fax sheet(s) and the date(s) the forms were originally submitted. Refer to Exhibit 25.23.4-2, Form 3245 Reversal, and Exhibit 25.23.4-3, Form 3809 Reversal, for additional guidance on how to complete the form.

Determining Tax Liability/Form 2209 Instructions

  1. This section provides guidance on determining if the taxpayer is required to file a federal tax return, if the taxpayer should file a federal tax return to receive a refund, and when a Form 2209, Courtesy Investigation, is necessary.

    Note:

    Determining a taxpayer’s filing requirement is not required for current tax year if the return due date (RDD) has not passed.

  2. The taxpayer’s filing requirement will be determined considering the following information:

    • Gross income (Gross income includes all income received in the form of money, goods, property and services that is not exempt from tax.)

    • Age

    • Filing Status

      Caution:

      When the valid taxpayer is a victim of income related IDT, exclude any income reported that was earned by someone other than the taxpayer when calculating the gross income amount.

      Reminder:

      Complete Form 9409 for any wages reported that were not earned by the valid taxpayer. See IRM 25.23.4.15, Form 9409 Procedures - IRS/SSA Wage Worksheet, for additional information.

      Example:

      CC IRPTR has wage income from ABC Company in the amount of $41,250.00, MNO Enterprises in the amount of $26,800.00, and XYZ Manufacturing in the amount of $5,125.00. You determine the valid taxpayer was only employed by MNO Enterprises. The gross income used to determine if the taxpayer has a filing requirement is $26,800.00. Form 9409 must be completed for the income reported by ABC Company and XYZ Manufacturing.

  3. Use the data from IDRS CC IRPTR to calculate the taxpayer’s net tax liability. Unless filing information is provided by the taxpayer, tax liability is only determined for the identity theft victim. If both the primary and secondary are victims, tax liability is determined separately for each taxpayer. The IAT Compliance Suite tool is available to assist in determining tax liability. The use of the tool is not mandatory. See the Determination of a Filing Requirement job aid on the IDTVA Hub for assistance with the IAT Compliance Suite tool for performing the calculation.

    Note:

    When calculating tax liability, allow the taxpayer a filing status of single. Allow a self-exemption for tax years 2017 and prior.

    Exception:

    Taxpayers who were over 65 at the time the return was due, are allowed the higher standard deduction amount.

  4. If it is determined that the taxpayer is due a refund, issue a closing letter instructing the taxpayer to file a return. Advise the taxpayer of the statute of limitations for receiving a refund. See IRM 25.6.1.8, Original Delinquent Returns, for additional guidance on refunds. If the Masterfile status is 02 or 03, input a TC 590 CC 078.

    Exception:

    Do not request the return if the RSED has expired and input a TC 590 CC 076 instead.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Do not suspend the case pending receipt of the return.

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If the Masterfile status is 02 or 03, input a TC 590 CC 077.

  7. Do not request a return if the return is six years or more overdue.

    Example:

    Taxpayer did not file a Tax Year (TY) 2010 return. The TY 2010 return was due April 15, 2011. The return is 7 years overdue. We would not request a return from the taxpayer.

  8. In situations where a fraudulent return has posted to the account as the TC 150 and the SSN owner has not filed (but review of the IRPTR shows income for the SSN owner), complete Form 2209, Courtesy Investigation, per IRM 5.1.8.2, Originating Office Procedure, to alert compliance that the SSN owner has not filed a tax return. Follow normal case processing to ensure the account is flagged with the appropriate ID theft indicators. Refer to job aid on the IDTVA Hub for completing the Form 2209.

    Exception:

    Do not send the Form 2209, under any of the following conditions:

    • It is determined the TP does not have a filing requirement. See paragraphs 1 - 4 above.

    • The taxpayer’s current address is a service center address.

    • The missing return is for the current filing tax year.

  9. If the Revenue Officer rejects the Form 2209 referral, forward a copy of the rejection to the following ITVA HQ contact: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, IDT Headquarter Analyst. No other action is needed.

Communicating with Taxpayers

  1. Communications with taxpayers may be associated with research of a case, the closing/resolution of a case or an interim contact to let taxpayers know that IRS needs more time and/or additional information to complete the processing of the request.

  2. Communications may be written or verbal (by telephone). Refer to IRM 21.3.3, Incoming and Outgoing Correspondence/Letters, and IRM 21.1.1.4, Communication Skills, for supporting guidance.

  3. The following subsections contain program specific guidance for communicating with taxpayers.

General IDTVA Letter Procedures

  1. All IDTVA will use the following letters when addressing IDT issues. This list is not all inclusive:

    • Letter 5073C, Acknowledgement Letter for Identity Theft Claim (Form 14039 Police Report), to acknowledge receipt of the IDT claim when CP 01S/701S is not systemically generated.

    • Letter 5064C, ID Theft-In Process Letter, as interim letter or to request additional information from the taxpayer.

    • Letter 4674C, IDTVA Closing Letter, as a closing letter when a CP 01, Identity Theft Acknowledgement, will not be systemically issued or when the CP 01 by itself is not sufficient to explain actions taken on the account, or respond to the taxpayer.

    Note:

    If Spanish language correspondence is received or the taxpayer marks the "Spanish" box in Section C of the Form 14039, a reply must be issued using the Spanish version of the appropriate C letter, if one is available. See IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), if translation services are needed. If providing a response in Spanish that includes an open paragraph, translation of the open paragraph must be included as a CIS case note.

    Exception:

    Do not issue the Spanish version of the C letter, if the taxpayer specifically requests to receive the letter in English, or if both the English and Spanish boxes are checked and the comments are written in English. If Spanish is indicated as a language spoken by the taxpayer on a Police Report, issue correspondence in English, unless the report clearly indicates the taxpayer does not speak English or would like to receive all communications in Spanish.

    Note:

    The CIS capture function must be used when sending a letter as part of IDT case resolution. Refer to IRM 21.5.1.5.1, CIS General Guidelines, for additional information.

  2. The IAT Letters tool in the IAT Task Manager must be used to input the Letter 5073C, Letter 5064C or Letter 4674C. The tool provides a simple format for selecting the required paragraphs, manually editing the address to the valid SSN owner’s information and adding a history item or updating the control base on IDRS. See Exhibit 21.2.2-2, ACCOUNTS MANAGEMENT MANDATED IAT TOOLS, for more information.

    Note:

    The Tax-Related IDT Letters Job Aid is a resource available to assist IDTVA employees with ensuring a quality response to taxpayer correspondence.

  3. A determination of whether the case will remain in the function should be made prior to issuing any letters.

  4. Unless an exception applies, all identity theft cases are required to have a Letter 5073C,Acknowledgement Letter for Identity Theft Claim (Form 14039 Police Report), issued within 30 days of IRS receipt.

    Note:

    IDTVA Specialty Function employees are required to issue an acknowledgement letter within 30 days of receipt into the function. Since the acknowledgement letter cannot be captured on CIS, a copy of the letter must be included with the correspondence being sent to ICT for imaging.

    Exception:

    Do not issue Letter 5073C as an acknowledgement letter if any of the following conditions exist:
    • It is determined that the case needs to be returned to the referring function
    • It is determined that the case needs to be routed/reassigned to another function and input of a Letter 86C is required; see IRM 25.23.4.3.3, Cases Requiring Routing/Reassignment to Other Functions
    • A Letter 5316C, CP 01S, or CP 701S was previously issued to acknowledge the claim
    • A Letter 2645C was previously issued when the case originated as an RPM claim (IDRS Category Codes RPMC and IDII)
    • Another IDTVA function has already issued an acknowledgement letter within the last 180 days
    • The case can be closed within 30 days of receipt (the closing letter will also be considered the acknowledgement; a separate acknowledgement letter is not required); the closing letter will include the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ toll-free number in lieu of the identity theft toll free number, the name and six-digit extension of the employee assigned to the case and their tour of duty as the hours of operation or, for international taxpayers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (not toll-free) with no six-digit extension and 6:00 a.m. - 11:00 p.m. EST as the hours of operation
    • The correspondence has a Form 14157, Return Preparer Complaint, or Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit, attached (IDTVA Specialty Functions see paragraph (6) of IRM 25.23.10.2, Case Batching, for additional information)

  5. When a 5073C acknowledgment or other letter was issued for a tax year in error, a closing letter is required. Issue a Letter 544C, Apology for IRS Error, for the specific tax year only.

  6. If the case needs to be referred to another function, the referring function should issue the Letter 5073C or Letter 86C, whichever is appropriate, as the acknowledgement letter prior to referral. The acknowledgement letter must include the toll-free number 800-908-4490 or, for international taxpayers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (not toll-free).

    Example:

    IDTVA ACS-Support receives a referral from ACS-Support. Through research IDTVA-ACS determines that the account has two impacted tax years. TY 2012 is an impacted tax year for ACS and the TY 2013 has an Exam assessment. Per Exhibit 25.23.4-5, IDTVA Routing Matrix, the case will be worked by IDTVA-Exam. IDTVA ACS-Support will send the acknowledgement letter to the taxpayer before preparing the case to be imaged by ICT. IDTVA-ACS-Support will input on the ICT Batch Cover Sheet as an IDI1, so that the cases will get assigned to IDTVA-Exam.

  7. When issuing a Letter 5064C or Letter 4674C, use the signature date or the date written on the correspondence from the taxpayer for the correspondence date. If a date cannot be determined, use the dates listed below in the following order:

    • Fax received date

    • Postmark date

    • Three days prior to the IRS received date of the case

  8. If a case cannot be completed within the number of days specified in the acknowledgement letter, then an interim Letter 5064C, IDTVA In-Process Letter, must be sent. Interim letters will need to be issued no earlier than 175 days after the IRS received date and should inform the taxpayer when a final response can be expected and provide a contact name and number for additional inquiries. See IRM 21.3.3.4.2.2, Interim Responses, for additional information.

    Reminder:

    Issuing the interim letter prior to 175 days after the IRS received date will add the additional time from that date which could fall within the original timeframe provided in the acknowledgement letter. The time frame given in this interim letter may not exceed 60 days.

    Example:

    Today’s date is January 16, 2020. Your case is currently 93 days old. Issuing an interim Letter 5064C requesting an additional 60 days to process the case will result in a response being required by March 16, 2020 (when the case is 153 days old).

  9. When issuing a Letter 5064C, IDTVA In-Process Letter, as an interim letter or to request additional information/documents, the letter must include the following:

    • The number for the IDTVA Theft toll-free line ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or, for international taxpayers, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (not toll-free)

    • The name and six-digit extension of the employee assigned to the case

    • Hours of operation - the employee that is issuing the letter will input their TOD as the hours of operation

      Exception:

      Employees who do not have a six-digit extension will use the extension of their work leader when issuing the letter.

      Exception:

      A six-digit extension will not be included in letters issued for IDTVA International cases.

  10. A closing letter must be sent to the taxpayer when all account actions have been completed on a case. Policy Statement P-21-3 guidelines require timely and quality responses to taxpayer correspondence.

    Note:

    A quality response is an accurate and professional communication which, based on information provided, resolves the taxpayer issues, requests additional time and/or information from the taxpayer, or notifies the taxpayer we have requested information from outside the IRS.

  11. Accounts marked with an IDT indicator TC 971 AC 501 will generate a CP 01,Identity Theft Acknowledgement. Refer to IRM 25.23.2.6.1.1, Systemic Actions Taken TC 971 AC 501 Placed on Account, for additional information regarding a TC 971 AC 501 and the CP 01.

    Exception:

    CP 01 generates only once in a three-year period. If another year was marked with a TC 971 AC 501 within the last 3 years, a Letter 4674C is required to inform the taxpayer their account was corrected.

    Note:

    Current programming for the CP 01 will generate a copy of the notice to a POA that is on file. If sufficient documentation has been received to validate a POA, but is not yet on file, then issue the POA a closing letter. This ensures the taxpayer’s right to retain representation and the POA’s right to be informed.

    Caution:

    For potential fraudulent and/or compromised POAs, refer to IRM 21.3.7.5.5.3, How to Report a Compromised or Potentially Compromised CAF Number.

  12. When the reporting person is not an authorized third party, a Letter 4674C must be sent to the taxpayer. Include paragraph K to inform them of the third-party contact.

  13. When the account does not reflect a current Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, listing the reporting party as a representative or third-party contact for the individual listed as the impacted taxpayer, and you can locate a valid address, issue a closing Letter 3404C to the reporting party. Include paragraphs A, *, and J.

    • For paragraph *, include the following special paragraph: "We will reply directly to the taxpayer listed in your inquiry when we have completed our investigation into the identity theft claim. We won’t send you any further correspondence regarding this matter, because our record show you are not authorized to receive confidential tax information for the taxpayer listed in your inquiry."

    • For paragraph J, include the following special paragraph: "We must have a valid Form 2848, Power of Attorney and Declaration of Representative, or a valid Form 8821, Tax Information Authorization, on file to provide you with confidential tax information for this taxpayer. For more information about these forms, visit our website at www.irs.gov/forms-pubs."

  14. When issuing a letter, ensure the correct paragraphs are used to inform the taxpayer of the status of their account based upon the facts and circumstances of the case. Also see additional items below:

    • If appropriate, include multiple tax years by manually inputting the tax year in the empty boxes. Up to ten (10) tax years can be input in a Letter 4674C and eight (8) tax years can be input in a Letter 5064C.

    • If there is a valid Power of Attorney (POA) or third-party representative on file, verify the Centralized Authorization File (CAF) copy selection is input.

  15. Multiple tax years can be combined in one letter unless unique issues or account resolution are present requiring individual tax year letters.

  16. Review letters for misspelled words, errors in capitalization and punctuation, IRS jargon and other fill-in errors.

  17. Actions taken on the account will determine if a Letter 4674C needs to be issued as a closing letter. A letter 4674C must be sent if any of the following conditions exist with the indicated telephone number provided.

    Note:

    The IDT Toll-free number, 800-908-4490, does not include an employee’s extension and is answered by the AM Toll-Free assistors. The hours of operation are 7:00 a.m. - 7:00 p.m.
    The IDTVA Toll-free number, ≡ ≡ ≡ ≡ ≡ ≡ ≡, does include the employee’s extension and is answered by employees. The employee issuing the letter will input their TOD as the hours of operation.
    The IDTVA International number, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (not toll-free), does not include an employee’s extension and is answered by international telephone assistors. The hours of operation are 6:00 a.m. - 11:00 p.m. EST.


    See chart below:
    Criteria Number to be used
    (1) If the CP 01 will not be issued,

    Reminder:

    The CP 01 will not be issued if one has been issued in last three years.

    IDT Toll-free number 800-908-4490
    (2) If a Letter 5064C or Letter 5073C was not issued previously providing the taxpayer with an IDT Toll-free number, IDTVA Toll-free number ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with employee’s name, six-digit extension and TOD
    (3) If the taxpayer’s correspondence contains questions that will not be addressed by the CP 01, Answer taxpayer’s question and include IDT toll-free number 800-908-4490
    (4) The resolution was not what the taxpayer anticipated (i.e., NOIDT determination, disagreed with information TP provided), IDTVA Toll-free number ≡ ≡ ≡ ≡ ≡ ≡ ≡ with employee’s name, six-digit extension and TOD
    (5) There is an additional requirement in the corresponding functional IRM, Telephone number based on the functional guidance
    (6) International taxpayers When issuing Letter 4674C, include paragraph (:).

    Note:

    If two criteria fit a case, use the IDTVA toll-free number. For international taxpayers, also include ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  18. If there is still a compliance issue after the IDT issue is resolved, (i.e., account will result in a balance due), provide the applicable Compliance toll-free number. See paragraph (13) of IRM 25.23.4.18.5, Responding to Taxpayer Calls on Identity Theft (IDT) Cases (IDTVA Paper Employees Only) for a list of numbers.

    Caution:

    Do not provide a specific dollar amount unless the taxpayer or their authorized representative makes a request for one.

    Example:

    The taxpayer’s current year refund was applied to a balance owed for a prior year. The taxpayer submits Form 14039 stating they are a victim of identity theft, because they didn’t file a return for the year the refund was applied to and should not have a balance due. Through research, you determine the taxpayer is not a victim of identity theft. The balance owed is the result of an ASFR assessment made for income earned by the taxpayer. The identity theft case is closed, but the compliance issue remains. The closing letter must include the phone number the taxpayer may call for more information about the ASFR assessment.

  19. On cases filed as married filing jointly, the Letter 4674C should be addressed to both taxpayers under the primary SSN, regardless of which taxpayer (primary or secondary) is the IDT victim. If the valid return was filed MFJ and only the secondary TP is the IDT victim, a disclosure issue does not exist in this instance.

    Note:

    If you are providing additional account information that was filed on a separate return for the victim, then the Letter 4674C should be addressed to the victim only.

  20. Closing an account with a TC 971 AC 506 in most instances, will not generate a systemic closing letter. Use Letter 4674C, IDTVA Closing Letter, to inform the taxpayer of the outcome of their IDT return.

    Note:

    If a closing letter was issued by RIVO/TPP already (e.g., Letter 4310C), do not issue a duplicate closing letter unless it has been more than 30 days and/or the RIVO/TPP Letter 4310C did not provide a response to all of the actions taken on the account.

    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. Use the following special paragraphs in addition to the paragraphs selected for your closing Letter 4674C:
    9:"Because we processed your claim late in the year, we are unable to mail an IP PIN in December or January for this upcoming filing season. File your return as normal for this tax season. We will mail you an IP PIN next December or January. If your address changes before December, you will need to complete Form 8822, Change of Address. Visit www.irs.gov/form8822."
    And
    !:"If you want an IP PIN to use for the upcoming tax year, visit our website at www.irs.gov/getanippin. A new IP PIN generates each year in mid-January. You can retrieve it by logging into your account at www.irs.gov/getanippin. If you chose to create an account to obtain an IP PIN, you will not receive a notice in December or January as stated above."

  21. Be sure any necessary letters are being sent to the correct address. The Correspondex letter system will default to the address of record (CC ENMOD) which may or may not be the correct address. Override the address of record when appropriate.

  22. If the returns or return and inquiry on an account/case contain the same address and a telephone number was provided, attempt to obtain more information first by telephone contact. If a telephone number is not available, then send only one letter to the address. See IRM 25.23.4.18.2.2, Requests for Additional Information (Telephone and/or Written.

Requests for Additional Information (Telephone and/or Written)

  1. When information provided by the taxpayer(s) is insufficient and a determination cannot be made through internal research, employees are required to contact the taxpayer(s) by telephone and/or by mail to obtain the necessary information.

  2. When telephone information is available, attempt to contact the taxpayers by telephone no less than two times to obtain additional information. When making an outgoing call, document each attempt in a CIS case note. Include the phone number called, who you spoke with, and/or if a message was left for the taxpayer.

    Note:

    There must be a reasonable amount of time between the two attempts. For example, another call on a subsequent day constitutes a valid second attempt. If you are able to leave phone message, allow the taxpayer 5 business days to return your call. The second attempt should not be made immediately after a first unsuccessful attempt.

    Note:

    If telephone information is unavailable, proceed to (8) below.

  3. Refer to paragraphs (20) - (22) of IRM 21.1.1.4,Communication Skills, for guidance specific to outgoing calls.

  4. In a CIS note, record that telephone contact was initiated, the number called and the action taken, etc. If applicable, record the name and individual to whom you speak and the answers you receive.

  5. If contact is made with the taxpayer, advise the taxpayer you will begin by asking some questions to verify their identity.

  6. Because telephone contact for these cases involves undetermined ownership of the SSN, guidance in IRM 21.1.3.2.3,Required Taxpayer Authentication, must be followed to ensure you are speaking to the appropriate taxpayer and to prevent unauthorized disclosure of tax information. Do not ask questions that might inadvertently disclose information merely by asking the question. Do not provide any information to the taxpayer unless specifically authorized to do so.

    Note:

    Follow guidance in IRM 21.1.3.3, Third Party (POA/TIA/F706) Authentication, and the related subsections when communicating with third parties.

    Note:

    Guidance in IRM 21.1.3.4,Other Third-Party Inquiries, authorizes you to accept information from any third-party even if the provider of the information does not have a written or oral authorization from the taxpayer.

  7. If you are able to authenticate the individual to whom you are speaking, proceed to paragraph (4) of IRM 25.23.4.18.2.1, Telephone Contact Guidelines (Associated with the Letter 5064C Common Number Questionnaire), for additional guidance.

    Note:

    If there are required forms or schedules the taxpayer must submit, provide them with a fax/EE-fax number so they can submit the needed documentation. Allow the taxpayer five (5) business days to submit the documents. If the documents(s) are not received within five (5) days, continue to paragraph (8) for guidance to send a letter.

    Note:

    IDTVA Specialty Functions - When applicable, be sure to explain to the taxpayer that if the requested information is not received within the allotted time, compliance issues or collection actions will resume, as appropriate.

  8. If no contact information is available or if the telephone attempts are unsuccessful correspond with the taxpayer via Letter 5064 to request the needed information.

    • Use IAT to input Letter 5064C

    • Ensure the correct address is used when issuing any correspondence

    • Reference any missing information, if applicable

    • Provide information to allow the taxpayer to reply either by mail, fax/EEFax, or telephone

    • Inform the taxpayers they have 30 days (60 days for International) from the date of the letter to respond

    • Capture an image of the letter on CIS

    • Suspend the case for 40 days (70 days for International cases). Refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional letter requirements.

    • See Exhibit 25.23.4-11, IDRS Activity Codes and Definitions, for documenting the follow-up date.

      Caution:

      Do not advise the taxpayer to contact SSA for a "Social Security Administration Social Security Number Verification" printout.

  9. If after 40 days (70 days for international cases) the taxpayer has not provided the requested information, make any account corrections you can with the information you have. Refer to IRM 25.23.2.6.6.1, No Reply - TC 972 AC 522 NORPLY, for additional information.

  10. When corresponding with the taxpayer to make a common number ownership determination, select paragraphs S through W to include the questionnaire.

  11. The questionnaire process moves in progressive stages that afford the taxpayer ample opportunity to provide the requested information. If at any stage the necessary information for a CN ownership determination is received AND any applicable suspense periods for that stage have expired, it is not necessary to proceed to the next stage.

Telephone Contact Guidelines (Associated with the Letter 5064C Common Number Questionnaire)
  1. Allow 21 days from the input date of the Letter 5064C before IRS-initiated telephone contact is attempted (to allow the taxpayer to receive the letter).

  2. The following defines a valid attempt to contact the taxpayer by telephone:

    • If a telephone number is available, then a call during the hours provided (if listed), followed by, if necessary, another call on a subsequent day constitutes a valid attempt. If you can leave a phone message allow the taxpayer 5 business days to return your call.

      Caution:

      If you leave a message for the taxpayer, do not provide any account information. Be especially careful when leaving a message on a number not obtained by a Letter 5064C response.

  3. Follow guidance in IRM 25.23.4.18.2, Requests for Additional Information (Telephone and/or Written), (Prior to Initiating Correspondence) to initiate the call.

    Reminder:

    Do not ask any questions that might inadvertently disclose information merely by asking the question. Do not provide any information to the taxpayer unless specifically authorized to do so.

  4. After authenticating the individual to whom you are speaking, ask the taxpayer if he or she recently received a letter from the IRS. If the taxpayer indicates he or she has not received a letter from the IRS, provide an explanation of the letter they will be receiving. Ask them if they would like to continue with the call or prefer to call back after they have received the letter. Complete High-Risk disclosure to verify the identity of the person you are speaking with.

  5. Preface the asking of the questions below with the following statements to the taxpayer:

     

    Note:

    Modify your statements and questions appropriately to the taxpayer if you are working a True Scrambled SSN case. If you are working a True Scrambled SSN case, tell the taxpayer that it appears the Social Security Administration has assigned the SSN to more than one individual. Strongly recommend that the taxpayer contact SSA as soon as possible. Any information the taxpayer provides by answering these questions will assist SSA.


    Our records indicate that the Social Security Number you used on your tax return for the tax year(s) of 'YYYY' (state the tax year(s) in question) was also used by another individual on his or her federal tax return. Disclosure laws prevent us from providing any information regarding the other individual. We would like to ask you a few questions in order to determine which individual should be using the Social Security Number for the filing of federal tax returns.
    "The IRS does not issue Social Security Numbers, and the IRS does not determine who the true owner of the Social Security Number is for the purposes of Social Security benefits. The Social Security Administration is a separate government agency and is the final authority on determining the ownership of the Social Security Number. We recommend strongly that you contact your local Social Security Administration office to ensure that your Social Security records are correct. The questions we would like to ask you today, consequently, pertain only to the filing of your federal income tax return. "
    "The questions are based on information received from the Social Security Administration. The answers you provide will assist us in resolving this issue as quickly as possible. An incorrect answer or a response of "I don't know" will not necessarily result in the Social Security Number not being assigned to you for federal income tax purposes."
    "Are you willing to answer the questions?"
    • If the taxpayer indicates he or she is not willing to answer the questions, simply thank the taxpayer for his or her time and inform the taxpayer that our determination will be made based on the information at hand. Inform the taxpayer that he or she will receive a letter regarding our determination within 6 to 8 weeks.

    • If the taxpayer asks for the questions to be sent to him or her by mail, inform the taxpayer that the questions not already listed on the letter he or she received must be given and answered during direct telephone conversation. If necessary, you may inform the taxpayer that this method is intended to ensure that the person using the Social Security number in error does not have the opportunity to research and find the correct answers.

    • If the taxpayer is willing to answer the questions, proceed with asking the questions in the questionnaire portion of the Letter 5064C and the question in IRM 25.23.4.18.2.2, Supplementary Questions (Associated with Letter 5064C Common Number Questionnaire). Have a copy of the Numident print available, related to the SSN, when asking the Supplementary Questions.

      Caution:

      Do not respond in any way that might be construed as a confirmation or a rejection of the validity of the taxpayer's response. The purpose of asking the questions is to obtain information for consideration, not to provide information to the taxpayer. Indications of confirmation or rejection would constitute providing information to the taxpayer.

    • On the TIN-Related Problem Research Sheet record the answers you receive.

    • We can make a determination without the questionnaire and documents in our file, but if an ownership determination is not made, the taxpayer will not receive his or her refund unless he or she has met all the conditions of IRM 21.6.2.4.3.3,Determining if the Refund Should be Released.

    • A True Scrambled SSN Case requires the actual documents, completed by the taxpayer, for the file going to SSA. If you believe the number is a True Scrambled, tell the taxpayer to send the documents requested in the Letter 5064C and the questionnaire as soon as possible.

    • After all the questions have been asked and the answers recorded, state the following to the taxpayer:
      "Thank you for the information you have provided. When we have completed our gathering and reviewing of information, we will notify you by mail of our determination. The expected time frame for the process of review and notification is generally 6 to 8 weeks. If possible, we will issue our determination more quickly than the expected time frame."
      "Please keep in mind the information we provided earlier in the conversation: The IRS does not issue Social Security Numbers, and the IRS does not determine who the true owner of the Social Security Number is for the purposes of Social Security benefits. The Social Security Administration is a separate government agency and is the final authority on determining the ownership of the Social Security Number. We recommend strongly that you contact your local Social Security Administration office to ensure that your Social Security records are correct. The questions we have asked today, consequently, pertain only to the filing of your federal income tax return."

    Caution:

    Be reminded that because this case involves an SSN of undetermined ownership, we cannot disclose any further information. Also, be careful not to indicate any pre-determinations you may have arrived at based on the answers you received.

  6. Ensure equal opportunity for each taxpayer to provide information. Refer to the If/And/Then Chart below:

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

Supplementary Questions (Associated with Letter 5064C Common Number Questionnaire)
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

     

    Note:

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

Actions Based on No Response or Taxpayer Responses to Letter 5064C and/or Supplementary Questions sent to determine Common Number Ownership
  1. Follow the guidance below to determine the appropriate actions for your IDT case.

    Note:

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

    Note:

    Please see IRM 25.23.2.2,Identity Theft Claim - Overview, for additional information.

    1. No Response

      If Then
      The follow-up date expires on a Letter 5064C sent for common number owner determination and a review of CIS shows that neither taxpayer provided a response/documentation whether by mail, telephone, or fax/EEFax, See IRM 25.23.2.6.6.1,No Reply - TC 972 AC 522 NORPLY.
      • Change control category to "SCRM"

      • If you are not trained to work SCRM cases, then reassign the case to the SCRM holding number located on the Accounts Management Site Specialization Temporary Holding Numbers Listing, located on SERP.

      Note:

      If the required research has not been conducted and/or if the case does not contain all of the required documentation, the case will be rejected back to the site IDT POC.

      • If trained to work SCRM cases, then continue to work the case. Refer to IRM 21.6.2.4.3,Scrambled SSN Case Procedures, for related guidance.

    2. Processable Responses from One Taxpayer

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      • Consider the taxpayer who responded with the accurate questionnaire information to be the owner of the CN.

      • Add a CIS note and a note to your TIN-Related Problem Research Sheet stating 5064 Response. Refer to IRM 25.23.4.10, Resolving Identity Theft (IDT) Cases to identify your case scenario. Follow the guidance to resolve your case.

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