These procedures apply to responses for BMF IDT returns selected where the return has posted to the account. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

Complete all necessary account research prior to taking any account actions. Use IRM 25.23.9.4, BMF Identity Theft Research (inquiry received via paper or phones) and IRM 25.23.9-7, BMF Identity Theft Research Requirement, as a research guide.

If a return was selected, allowed to post and contains indicators mentioned above, use the following table to process these cases:

These procedures apply to responses for BMF IDT returns selected where the BMF IDT return has not posted to the account. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Complete all necessary account research prior to taking any account actions. Use IRM 25.23.9.4, BMF Identity Theft Research (inquiry received via paper or phones) and IRM 25.23.9-7, BMF Identity Theft Research Requirement, as a research guide.

These selected returns are suspended instead of being allowed to post. A TC 971 AC 711 is posted to the account causing the return to post as a TC 973 and it will remain suspended until the taxpayer validates the return.

The return posting as the TC 973 will be suspended for a period up to one year from posting date. If the return has not been validated within that year, it will be deleted.

Use the following table to process these cases:

RICS receives requests to reissue Letter 5263C or 6042C when the taxpayer states they did not receive a letter. Requests can be received over the phone or in writing. Other areas will send a Form 4442 referral to RICS to fulfill these requests. These requests should be handled as follows:

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If the taxpayer does not respond to either the initial or reissued Letter 6042C requests for additional information, research may be conducted on certain cases to determine validity of the return.

If unable to determine validity of return without a response from the taxpayer, the case will be closed as a no reply case, which includes:

Returns selected for RICS review that have posted as TC 150 will be backed out. Refer to IRM 25.25.1.3.2.1, Selected Returns - Posted as TC 150 , for procedures to follow.

Returns selected for RICS review that have posted with a TC 971 AC 711 will not be processed without proper validation. Refer to IRM 25.25.1.3.2.2, Selected Returns - Not Posted as TC 150, for procedures to follow.

There are instances where cases require special or expedited handling. Guidance is provided by Headquarters (HQ) for handling those cases.

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Utilize BMFIC reports to assist in properly identifying those cases requiring expeditious handling.

Letters 5263C or 6042C that are received as undeliverable should be handled as follows:

When a response to either Letter 5263C or 6042C is received, the correspondence and associated documents must be filed using procedures outlined in this IRM.

Information (e.g., loose forms, schedules, and correspondence) cannot be attached to an e-file or mag-tape return. Refer to IRM 3.13.2.1.12, Associating Documents to an E-Filed Return, for additional information.

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When sending documentation to alpha files via Form 3210:

The BMF IDT technician must write the Entities name control (4 characters from IDRS) on the first page, top right-hand corner of any documentation they need sent to Alpha Files.

For filing documentation that does not meet the criteria outlined above to be destroyed as classified waste, refer to the following table:

If no TC 150 posted, the TC 971 AC 711 and TC 973 posted but the TC 973 has been deleted from the suspense file because it has been more than one year since TC 973 posted date and you need return posted, the return must be secured and sent to be reprocessed.

Prior to sending return to Submission Processing (SP) to be reprocessed, you must reverse the TC 971 AC 711 as applicable, allowing the return to post. See IRM 25.25.1.3.3.4, Input of TC 972 AC 711, for proper reversal.

Secure return that requires reprocessing:

Edit all BMF tax returns in green:

Refer to IRM 21.5.2.4.23.7, Coding and Editing Procedures, for additional required actions when sending a return to be reprocessed. Also refer to IRM 21.5.2.4.23.1, Reprocessing Electronic Returns, for additional information.

When sending a return to be reprocessed, add an IDRS history item activity of "H,RTN2PROC" to the tax module.

TC 971 AC 712 with DLN of the TC 973 that is deemed the good return is applied to allow only the return with that matching DLN to post as the TC 150. If multiple true duplicate returns are received later, ensure you select the earliest received and processable TC 973 DLN that is deemed the good return. This preserves the original return received date from the taxpayer.

TC 971 AC 713 with DLN of the TC 973 that is deemed the good return is applied to allow only the return with that matching DLN to post as the TC 150 but will freeze any refund with a -R freeze. If multiple true duplicate returns are received later, ensure you select the earliest received and processable TC 973 DLN that is deemed the good return. This preserves the original return received date from the taxpayer.

Obtain the following information:

Enter CC REQ77
CC FRM77 is displayed for the selected MFT and Tax Period
Enter the TC 971 AC 712 or AC 713

There may be instances when TC 971 AC 711 has posted but no TC 973 or TC 150 posted. For example, a return is delayed or determined to be unprocessable by SP. Or TC 973 has been deleted from the suspense file. In certain instances, it is necessary to reverse the TC 971 AC 711 manually by inputting a TC 972 AC 711.

Only use these procedures to reverse the TC 971 AC 711 when you determined the return is not IDT, and:

Obtain the following information:

Enter CC REQ77
CC FRM77 is displayed for the selected MFT and Tax Period
Enter the TC 972 AC 711

If Letter 5263C response contains updated Entity information, complete necessary corrections to the Entity module per IRM 3.13.2.9, Correspondence Received.If response is received and taxpayer needs to file a Form 8822-B (entity information update) issue a 6217C letter.

Document the findings on AMS and in the BMFIC database that support the suspected EF claim.

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If a return is filed after the Letter 5263C was issued and the response indicates IDT is involved, complete Form 4442, Inquiry Referral, to "BMF IDT" . Summarize on the Form 4442 why it is IDT and attach any correspondence received.

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If the taxpayer does not respond to either the initial or reissued Letter 5263C requests for additional information, review the account and complete Entity Fabrication research to determine if the Entity appears to be legitimate or fabricated.

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If the taxpayer did not receive Letter 5263C or the taxpayer requests the letter be reissued:

Suspicious EIN's may be elevated to the EF Team for further review through the EF Leads mailbox, "W&I EF Referrals" , see IRM 25.23.9.8.2, Referrals to Return Integrity and Compliance Services (RICS), for additional information for referring leads to the EF Leads mailbox.

If Form 14566, BMF Identity Theft Referral, is attached, research the referred EINs using Command Code (CC) BMFOLE. Locate the Transaction Code (TC) 020 and TC 971 AC 524. Per IRM 25.23.9.8.4, Referrals to Lock the Account, they should already be present. If TCs are not present, return the referral to the originator advising that incomplete referrals are returned to the originator per IRM 25.23.9.8.1, Fabricated EIN Procedures.

Conduct all research including checking other linked entities (cross reference TINs) for necessary actions.

Update the EIN’s Mode of Contact (MOC) to Call Back / IRS for two weeks. Update the calling instructions with the following note: "Reviewed for EF Determination - Suspicious by XXXXXX17 on XX/XX/XXXX."

Open and close case in the BMFIC database appropriately. If the referral was received without the Form 14566, update BMFIC checkboxes based on case determination including "Input TC-971/AC-524" check box if needed.

Send an e-mail response to the originator within 30 days of receipt by returning Form 14566, if attached, via secure e-mail. Advise in the response that the account has been identified as EF or not based on your research.

Letters 5263C that are received as undeliverable should be handled as follows:

Use the following guidelines when leaving messages that contain confidential information on answering machines/voice mail. These guidelines are consistent with prudent business practices and disclosure rules while still providing for good customer service.

Answering machine/voice mail guidelines:

When the number reached cannot be positively identified as the taxpayer's and it is otherwise appropriate and practical, it may be preferable to simply ask for a recall from whoever initiated the contact and left the number for the IRS return call. If the call is in response to an earlier taxpayer inquiry or request, a statement can be made that the call is in response to an earlier inquiry/request. The IRS employee may not indicate the nature of the original request/situation nor reveal any specifics about the return call if it involves confidential information.

If a Third-Party Designee (TPD) calls on behalf of the taxpayer, ask if the taxpayer is present. If so, go through disclosure to verify the taxpayer. If the taxpayer is not present, attempt to validate the TPD. If not validated, then advise TPD to have the taxpayer present or have the taxpayer call back.

If a POA calls on behalf of the taxpayer, you can verify taxpayer information and proceed with the call. However, you should ask if the taxpayer is present as it is preferable to speak to the taxpayer directly. If not, proceed with the POA.