25.25.1 Return Integrity and Verification Revenue Protection Programs

Manual Transmittal

August 19, 2015

Purpose

(1) This transmits revised IRM 25.25.1, Revenue Protection, Return Integrity and Verification Revenue Protection Programs.

Material Changes

(1) Editorial changes made throughout the IRM section.

(2) IPU 15U0353 issued 02-19-2015 IRM 25.25.1.1(1), Changed 'Correspondence' to 'Compliance'.

(3) IPU 15U0353 issued 02-19-2015 IRM 25.25.1.3, Changed 'Correspondence' to 'Compliance'.

Effect on Other Documents

IRM 25.25.1 dated October 1, 2014 is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - 15U0353 issued 02-19-2015.

Audience

Campus employees in Integrity & Verification Operation, Return Integrity and Compliance Services

Effective Date

(08-19-2015)

Related Resources

The following new IRMs should be used in conjunction with one another:

  • IRM 25.25.1, Return Integrity and Verification Revenue Protection Programs

  • IRM 25.25.2, Revenue Protection Screening Procedures for Individual Master File Returns

  • IRM 25.25.3, Revenue Protection Verification Procedures for Individual Master File Returns

  • IRM 25.25.4, Integrity and Verification Identity Theft Return Procedures

  • IRM 25.25.5, Revenue Protection Special Handling Procedures

  • IRM 25.25.6, Taxpayer Protection Program

  • IRM 25.25.7, Automated Questionable Credit Program

  • IRM 25.25.8, Revenue Protection External Leads Procedures

  • IRM 25.25.9, Revenue Protection Prisoner Lead Procedures

  • IRM 25.25.10, Revenue Protection Frivolous Return Program

Kenneth C. Corbin Director
Return Integrity and Compliance Services
Wage and Investment Division

Overview

  1. The Wage and Investment (W&I) Return Integrity and Compliance Services (RICS), Integrity & Verification Operation (IVO) is responsible for the primary Internal Revenue Service (IRS) pre-refund fraud detection, revenue protection and associated account resolution activities.

  2. These activities are a critical piece of IRS strategy to address identity theft (ID theft) and prevent unwarranted refund issuance by stopping fraud attempted through Individual Master File (IMF) return filing.

  3. The guidance provided in this IRM is intended for IVO employees' use when performing their assigned duties, unless otherwise specified.

Electronic Fraud Detection System (EFDS)

  1. The EFDS is the primary application used by W&I RICS to perform revenue protection activities. It is comprised of two components:

    • The Workload Management System (WMS) supports the management of the day-to-day workload.

    • The Scheme Tracking and Referral System (STARS) supports the collection and management of fraudulent return information.

Return Integrity and Compliance Services (RICS) and Integrity & Verification Operation (IVO) Workload

  1. The following is a general list of RICS IVO workload/programs:

    • Screening of questionable income and withholding on IMF returns

    • Verification of questionable income and withholding on IMF returns

    • Identification and treatment of ID Theft associated to IVO inventories

    • Treatment of potential ID Theft returns detected through the Taxpayer Protection Program (TPP) processes

    • Automated Questionable Credit Program (AQC), limited processing of some types of questionable credit issues that require Statutory Notice of Deficiency procedures

    • External Leads Program, treatment of questionable Federal tax refunds or offsets identified post refund by external sources to the IRS

    • External Lead Prisoner Program (Blue Bag), treatment of prisoner mail intercepted by a prison and sent to IRS for review of potential fraud related conditions

    • Account resolution associated to IVO activities

    • Fraud Referral & Evaluation, refund scheme detection and analysis