25.25.3 Revenue Protection Verification Procedures for Individual Master File Returns

Manual Transmittal

September 10, 2019

Purpose

(1) This transmits revised IRM 25.25.3, Revenue Protection, Revenue Protection Verification Procedures for Individual Master File Returns.

Material Changes

(1) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1 Corrected Policy Owner name, added stakeholders, added goals and link to manager IRM.

(2) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.1 Corrected Policy Owner name.

(3) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.2 Corrected Policy Owner name, added link to manger IRM, added link to Embedded Quality IRM.

(4) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.3 Corrected Policy Owner name, corrected link Policy Statement 4-21, added link to Servicewide Delegations of Authority, added section symbol for IRCs.

(5) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.1.4 Corrected IRM link.

(6) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.4 Corrected Policy Owner name, corrected IRM link.

(7) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.5 Corrected Policy Owner name, corrected IRM link.

(8) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.1.6 Added procedures for restricted accounts, added reminder and link to Taxpayer Bill of Rights.

(9) IPU 19U0154 issued 02-08-2019 IRM 25.25.3.2 Removed note regarding IRA process.

(10) IRM 25.25.3.2 Corrected IRM link, added italics to IRM titles.

(11) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.3 Added Overview to title, revised information.

(12) IPU 19U0154 issued 02-08-2019 IRM 25.25.3.4 Revised procedures to remove IRA process.

(13) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.4 Revised wording for clarity, added procedures for 2 or more IDOCs for the same TIN and EIN, clarified reminder for income types without employees.

(14) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.4 Added guidance for mismatch EIN, added note for incorrect dollars, revised tolerance information for clarity, spelled out acronyms, corrected IRM links.

(15) IPU 18U1504 issued 12-03-2018 IRM 25.25.3.5 Added statement regarding locking EINs in EFDS.

(16) IPU 19U0340 issued 03-14-2019 IRM 25.25.3.5 Clarified EIN locking process.

(17) IRM 25.25.3.5 Corrected form links.

(18) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.5 Revised Bogus procedures.

(19) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.6 Added Overview to title, revised information.

(20) IRM 25.25.3.6 Added italics to IRM titles.

(21) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.6.1 New subsection, Contact with the Employer.

(22) IRM 25.25.3.6.1 Corrected form links, added italics to IRM titles.

(23) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.6.2 New subsection, Unable to Contact the Employer.

(24) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.6.2 Corrected IRM links, corrected Form links.

(25) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.7 Revised tolerance information for clarity.

(26) IRM 25.25.3.8 Added note for discontinuation of Batch Fax Process, added italics to IRM title.

(27) IRM 25.25.3.9 Added note for discontinuation of Batch Fax Process, added italics to IRM title, corrected form links.

(28) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.10 Revised tolerance information for clarity, corrected note for not employed, corrected form for address changes, corrected IRM links.

(29) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.11 Corrected email/efax mailbox.

(30) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.11 Corrected Program Owner, corrected IRM links, spelled out acronyms, corrected Treasury Regulation.

(31) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.13 Removed bogus information.

(32) IRM 25.25.3.13 Corrected form links, added italics to IRM titles, spelled out acronyms.

(33) IRM 25.25.3.14 Added italics to IRM titles.

(34) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.15 Corrected email/efax mailbox.

(35) IRM 25.25.3.15 Restricted internal mailboxes.

(36) IPU 18U1504 issued 12-03-2018 IRM 25.25.3.16 Clarified procedures for verifying IDOCs.

(37) IPU 19U0755 issued 06-11-2019 IRM 25.25.3.16 Removed incorrect paragraph reference.

(38) IPU 19U1006 issued 08-30-2019 IRM 25.25.3.16 Clarified Not Employed instructions, Corrected IRM links, spelled out acronyms.

(39) IPU 19U0755 issued 06-11-2019 Exhibit 25.25.3-1 Corrected weblinks.

(40) IPU 19U0755 issued 06-11-2019 Exhibit 25.25.3-3 Removed bogus information.

(41) Exhibit 25.25.3-3 Spelled out acronym.

(42) Editorial changes made throughout the IRM section.

Effect on Other Documents

IRM 25.25.3 dated September 17, 2018 is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - IPU 18U1504 dated 12-03-2018, IPU 19U0154 dated 02-08-2019, IPU 19U0755 dated 06-11-2019, IPU 19U1006 dated 08-30-2019.

Audience

Campus employees in Return Integrity Verification Operations

Effective Date

(10-01-2019)

Denise D. Davis
Director, Return Integrity Verification Program Management
Wage and Investment Division

Program Scope and Objectives

  1. Purpose and Program Goals: This IRM section provides guidance for Return Integrity Verification Operations (RIVO) employees when verifying individual master file returns in the Electronic Fraud Detection System (EFDS) for possible identity theft and false income and withholding. Individual master file returns are scored through the Dependent Database (DDb) or through the Return Review Program (RRP) system. These scoring processes identify suspicious returns meeting the scoring criteria for screening by RIVO employees.

  2. Audience; The audience intended in this IRM is RIVO employees.

  3. Policy Owner; The Return Integrity Verification Program Management (RIVPM) is the policy owner of this program.

  4. Program Owner; RIVPM is the program office responsible for oversight over this program.

  5. Primary Stakeholders; The primary stakeholders are Return Integrity Verification Operation (RIVO), and organizations that collaborate with RIVO.

  6. Program Goals; Program goals for the program are in the Operation Guidelines as well as IRM 1.4.10, Integrity & Verification Operation Managers Guide.

Background

  1. Return Integrity Verification Program Management (RIVPM) strengthens the integrity of the tax system by:

    • Protecting the public interest by improving IRS’s ability to detect and prevent improper refunds

    • Serving the public interest by taking actions fairly and appropriately to identify, evaluate and prevent the issuance of improper refunds

    • Helping taxpayers understand the refundable tax credits for which they are eligible

Program Management and Review

  1. The program has reports such; as the Return Integrity Verification Operations (RIVO) Monthly Performance Comparison Report, to track the inventory, including receipts and closures. Additional report guidance is found in IRM 1.4.10, Integrity & Verification Operation Managers Guide.

  2. The Embedded Quality review program is in place to review all processes to ensure accuracy and effectiveness of the program. Goals, measures, and operating guidelines are listed in the yearly Operation Guidelines and 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.

Authority

  1. The following references provide authority for the Return Integrity Verification Operations:

    • IRM 1.2.1.5.10, Policy Statement 4-21.

    • IRM 1.2.2, Servicewide Policies and Authorities, Servicewide Delegations of Authority.

    • IRM 11.3.21.4, Contractual Disclosures for Investigative Purposes

    • IRM 1.1.13, Wage and Investment.

    • Various Internal Revenue Codes (IRC) including but not limited to:

    • IRC § 6402(a), Authority to make credits or refunds.

    • IRC § 6401, Amounts treated as overpayments.

    • IRC § 6404, Abatements of tax.

    • IRC § 6213, Restrictions on assessments and math error authority.

Responsibilities

  1. Return Integrity Verification Program Management (RIVPM) has responsibility for information in this IRM. Information is published in the IRM on a yearly basis.

  2. The Director of RIVPM is responsible for the policy related to this IRM.

  3. The Chief of the RIVPM Policy & Analysis is responsible for ensuring this IRM is timely submitted to publishing each year.

  4. More information can be found in IRM 1.1.13.5, Return Integrity and Compliance Services.

Acronyms

  1. For a list of acronyms used throughout Return Integrity Verification Operation (RIVO), see IRM 25.25.1.1.5, Acronyms.

Related Resources

  1. The related resources listed below may be utilized for account research and issue resolution. These related resources may be accessed through the IRS Intranet-Servicewide Electronic Research Program (SERP) site.

    • IRM 25.25, Revenue Protection

    • IRM 25.23, Identity Protection and Victim Assistance

    • IRM 21, Customer Account Services

    • IRM 2, Information Technology

    • IRM 3, Submission Processing

  2. IDRS restricted access accounts are accounts where a user must request special permissions to access the account through IDRS. Follow IRM 21.2.1.3.2, Authorized IDRS Access.

  3. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC § 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, The IRS outlines the Taxpayer Bill of Rights.

Verification of Income

  1. Verification of income documents (IDOC(s)) attached to Individual Master File (IMF) returns is critical to stopping questionable refunds. The IRS is required to notify a taxpayer in advance that a third party may be contacted to help resolve their account. For further information concerning third-party notification, see IRM 5.19.5.12, Notification of Third Party Contact.

  2. Observe the Taxpayer Bill of Rights as spelled out in Publication 1, Your Rights as a Taxpayer, particularly with respect to confidentiality and privacy when conducting research and/or contact with third parties to obtain income verification.

  3. When an IDOC is sent to Verification, Workload Management System (WMS) will place the IDOC in "Suspense" . The IDOCs can be viewed but no action can be taken on the IDOC during the suspense period. Generally, IDOC(s) may include:

    Note:

    The list is not all inclusive.

    • Form W-2, Wage and Tax Statement

    • Form W-2G, Certain Gambling Winnings

    • Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

    • Form 4852, Substitute for Form W-2, Wage and Tax Statement or Form 1099 R, Distribution From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs

    Exception:

    You may receive a Form 12412, Operations Assistance Request (OAR), from Taxpayer Advocate Service (TAS). The request may state, that TAS has informed the taxpayer the employer will be contacted to verify the income document and the taxpayer has agreed to the employer contact. If all the information is on the OAR, you can verify the income with the employer without the suspension time. Add a note to Electronic Fraud Detection System (EFDS): OAR Received taxpayer agrees to employer contact.

  4. There are various methods used to verify IDOCs:

    • Fax Verification - the request is made by fax

    • Phone Verification - the request is made by a call

    • Disc Verification - income information is (or will be) provided on a disc by the employer

    • Command Code (CC) IRPTR Verification - verification performed using CC IRPTR data information

  5. By law, employers are not required to provide IRS employees information unless served with a summons or subpoena. Summonses are issued by revenue officers, revenue agents, and special agents. Therefore, it is critical that proper telephone techniques are developed to the highest degree of efficiency and tact.

    Note:

    See IRM 21.1.1.4, Communication Skills, and IRM 21.1.3.2.2, Authorized and Unauthorized Disclosures, see IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information, for additional information.

  6. Integrity & Verification Operation (IVO) has agreed to verify documents that Criminal Investigation (CI) has added to CE regardless of tolerance and refund lost. CI will input an EFDS note - "CI POST REFUND" when sending IDOCs on post refund returns to "VERIFY" . All IDOCs sent to verification must be verified.

Contact Employer Overview

  1. The Workload Management System (WMS) is used to access the application Contact Employer (CE) and is used to manage the income verification process at both a National and Local level. The employee will log into WMS and access CE from the main menu bar.

  2. The purpose of CE is to automate the process of verifying suspicious income documents (IDOCs) that are submitted with potentially false returns. IDOCs may include, Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.. Tax Examiners (TE) need to be conscious of the IDOC type when making a phone call to the employer.

  3. When a return is sent for verification, the employer may have or may need a mode of contact (MOC) assigned in CE. A MOC identifies the way an employer will be contacted to verify income and withholding information for a questionable IDOC.

  4. Documentation or remarks in the Electronic Fraud Detection System (EFDS) is essential for proper movement, treatment and resolution. Remarks should be brief and specific to the issue or case or as directed by the IRM.

Income Verification using Command Code (CC) IRPTR

  1. Command Code (CC) IRPTR will be used to verify all prior year returns and current year returns when CC IRPTR data is available or considered fully loaded. For returns containing an Individual Taxpayer Identification Number (ITIN) for the primary and/or secondary, see IRM 25.25.3.16, Updating Individual Taxpayer Identification Number (ITIN) Income Documents (IDOCs). Use CC IRPTR first for all types of verification each filing season per leadership direction.

  2. The Income Verification Table is used to verify income using CC IRPTR. Use the table below only if CC IRPTR data is available for the tax year:

    If CC IRPTR data for the income document (IDOC) and Employer Identification Number (EIN) Enter into the name position in Contact Employer (CE) Update CE current IDOC disposition
    1
    Is available and:
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      OR

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

      Note:

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

    "PER IRPTR" "Verified OK"

    Note:

    Follow instructions in paragraph 3 prior to updating the IDOC to "Verified OK" .

    Reminder:

    Taxable pension/annuity income amounts may differ due to the taxpayer’s calculations. Accept the taxpayer’s figures for the income, however the withholding must verify per tolerance.

    2
    Is available and the IDOC does not fall within the above money and percentage limits

    Note:

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

    "PER IRPTR" Enter income and withholding amounts per CC IRPTR or as indicated on IRA spreadsheet, as applicable.

    Note:

    The current disposition will populate to "Incorrect Dollars" .

    Reminder:

    Taxable pension/annuity income amounts may differ due to the taxpayer’s calculations. Accept the taxpayer’s figures for the income, however the withholding must verify per tolerance.

    3
    Is not available but the IDOC falls within the tolerance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

    "PER IRPTR" Enter "0" for income and "0" for withholding amounts

    Note:

    The current disposition will populate to "Incorrect Dollars" .

    4
    Is not available or is available but contains the statement: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (consider verified false)
    "PER IRPTR" Not Employed
    5
    There are 2 or more IDOCs for the same taxpayer identification number (TIN) using the same EIN

    Note:

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

    "Per IRPTR"
    • Enter the CC IRPTR information for the IDOC or IDOCs found in CC IRPTR.

    • If the IDOC cannot be found and it is over tolerance, disposition the IDOC to "Not Employed" .

    • If the IDOC cannot be found and is under tolerance, enter "0" for the wages and "0" for the withholding.

      Note:

      Entering zero’s for the wages and withholding will cause the disposition to update to "Incorrect Dollars" .

  3. If CC IRPTR data is available and matches the wages and withholding on the IDOC, prior to updating the IDOC disposition in CE to "Verified OK" , additional steps must be taken as indicated in the following chart:

    Note:

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

    IF THEN
    1
    Electronic Fraud Detection System (EFDS) Return Notes indicate:
    "Compromised IRP Data - Do Not Release Based on IRP"
    Additional research is required to ensure the return was filed by the TIN owner. Compare the following information from the two prior year returns to the current year return:
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ disposition the IDOC to "Verified OK" . Input an EFDS return note indicating research results.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ disposition the IDOC to "Verified OK" . Input an EFDS return note indicating research results.

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

      Reminder:

      Do not input any money amounts as this action will cause the return to "Refile" in EFDS.

    2
    The calling instructions on the Employer Info Tab read "20NN IRP Confirmed" or "20NN EIN Good/IRPTR Data Loaded-Use G or B"
    Disposition the IDOC to "Verified OK"

    Note:

    No additional notes are necessary.

    3
    The calling instructions on the Employer Info Tab has no current record of EIN research for payment history
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Reminder:

      The following income types do not have employees such as; retirement income (Form 1099-R) and gambling income (Form W-2G), therefore there will not be any payroll tax payments under the paying agents EIN.

    • If ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Disposition the IDOC to "Verified OK" and input a note "20NN IRP Confirmed" , in the calling instructions.

    • If ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Consider the IDOC not verified. Do not update the IDOC disposition to "Verified OK" .

    • If the mode of contact is anything other than "Hold" pending "Bogus Determination" , change the Mode of Contact for that EIN to “Hold” pending "Bogus Determination" .

    • Input an EFDS note containing the research results.

    4
    The IDOC on CC IRPTR contains the following statement:
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • Consider the IDOC not verified. Do not update the IDOC disposition to "Verified OK" .

    • If the mode of contact is anything other than "Hold" pending "Bogus Determination" , change the Mode of Contact for that EIN to “Hold” pending "Bogus Determination" .

    • Input an EFDS note containing the research results.

Bogus Employer Determination

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. The Bogus Review Team will perform research on the Employer Identification Number (EIN) using the Bogus Determination Job Aid and the following Integrated Data Retrieval System (IDRS) command codes (CC):

    • CC BMFOLP is used to research for payments made under the EIN.

    • CC BMFOLI is used to research for filed returns.

    • CC BMFOLL is used to research for a Final Form 94X return.

    • CC IRPTRL is used to research for income received from other sources.

    • CC IRPTRI is used to research for income documents issued by the company.

    Note:

    The company’s established date is found on the "Employer Info" tab in contact employer (CE). Perform complete research through IDRS to identify any periods of time the business was functional.

    • Research "Google" and "Accurint" for evidence of company existence.

    • Review associated returns and IDOCs in the Electronic Fraud Detection System (EFDS) for indications of a bogus employer.

  3. Take the following action based on the research results:

    Determination Tax Examiner (TE) Action Lead Action
    1
    Bogus/Suspicious Company
    • Send all returns with a disposition of "None" to "Verify" .

    • Input all research results in "Employer Notes" . The notes must begin with the determination made.

    • Leave MOC for employer as "Bogus Determination" .

    • Input "Reviewed for bogus determination by (your EFDS #) on NN/NN/NNNN (the date of determination)" in the "Calling Instructions" .

    • Forward to the lead for review.

    • Review TE conclusion.

    • If agreed, forward to the manager.

    • If disagreed, return to TE with explanation.

    2
    No employees
    • Send all returns with a disposition of "None" to "Verify" .

    • Input all research results in "Employer Notes" . The notes must begin with the determination made.

    • Leave MOC for employer as "Bogus Determination" .

    • Input" Reviewed for bogus determination by (your EFDS #) on NN/NN/NNNN (the date of determination)" in the "Calling Instructions" .

    • Forward to the lead for review.

    • Review TE conclusion.

    • If agreed, change employer MOC to "No Employees" .

    • Input the following note into the Permanent Instructions – “NO EMPLOYEES for XXXX (Tax Period) include EFDS TE login XXXXXX17.

    • Manually disposition any IDOCs in the letter fax queue to "Not Employed" and input "No employees" in verifier name field.

    • Update record.

    • If disagreed, return to TE with explanation.

    3
    Non Compliant Company
    • Input all research results in "Employer Notes" . The notes must begin with the determination made.

    • Change MOC to "Call OK" .

    • Input Reviewed for bogus determination by (your EFDS #) on NN/NN/NNNN (the date of determination) in the Calling Instructions.

    No lead review required.
    4
    Household Employer
    • Input all research results in "Employer Notes" . The notes must begin with the determination made.

    • Input "Sch-H withholding payment made under XREF SSN NNN-NN-NNNN" .

    • Change MOC to "Call OK" .

    • Input Reviewed for bogus determination by (your EFDS #) on NN/NN/NNNN (the date of determination) in the Calling Instructions.

    No lead review required.
    5
    Good company
    • Input all research results in "Employer Notes" . The notes must begin with the determination made.

      Note:

      Input the following note in the Permanent Instructions if the company only files Form 1099-R or Form 1099-MISC: "Company only files 1099’s. All W-2s can be verified as not employed" .

    • Change MOC to "Call OK" .

    • Input Reviewed for bogus determination by (your EFDS #) on NN/NN/NNNN (the date of determination) in the Calling Instructions.

    No lead review required.
  4. Research, Applied Analytics & Statistics (RAAS) will run an EFDS query monthly to obtain the EINs deemed bogus. RAAS will use the information to lock the EINs, as appropriate.

Telephone Verification Overview

  1. Telephone verification inventory is maintained in contact employer (CE) by the "Stop Date" of the refund. Inventory is retrieved by running a Discoverer Query using the date the refund was held to ensure the cases are worked in received date order. Integrity & Verification Operation (IVO) employees will receive the inventory by selecting "Next EIN" in CE.

  2. Telephone verification is used to verify questionable income documents (IDOC) such as Form W-2, Form 4852, and Form 1099, when the information is not located in CC IRPTR ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. All IRS employees working tax related matters must provide their name and badge identification number when making phone calls, see IRM 21.1.1.4, Communication Skills, for details.

  4. If an answering machine or voice mail is reached when attempting to contact the employer, see IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail, for additional guidance. If you are reasonably sure you have reached the correct employer, it is acceptable to provide your name, badge number, a telephone call back number, the purpose of your call, the company you are trying to reach, and that you are with the IRS. Do not include or provide the company EIN or any taxpayer information in the message.

  5. All return calls from the employer left on the IRS voice mail must be retrieved on a daily workday basis.

  6. If the MOC is "Fax Only" , the fax will automatically generate in the batch fax. See IRM 25.25.3.8, Batch Fax.

  7. If the MOC is "No Selection" or the contact information (phone or fax number) is not found in CE, perform additional research to locate the employer’s contact information. See Exhibit 25.25.3-3, Research Check Sheet. Always review "Return Notes" for additional information including the tax year you need to verify. If the contact information is located, the employer must be called to establish a preferred MOC.

    Note:

    The company’s established date is found on the "Employer Info" tab in CE. Complete research through the Integrated Data Retrieval System (IDRS) should be used to identify any periods of time the business was functional.

  8. If the mode of contact (MOC) is "Call Ok" and the contact information is available, attempt to contact the employer. If the employer is reached, see IRM 25.25.3.6.1, Contact with the Employer, to continue the verification process.

  9. If the employer cannot be reached, see IRM 25.25.3.6.2, Unable to Contact the Employer.

Contact with the Employer

  1. Authentication of the Employer Identification Number (EIN) is required for all calls made to the employer prior to releasing any taxpayer information. Authenticate the employer by verifying the following information:

    • EIN

      Reminder:

      If the employer questions the validity of the call or is reluctant to provide their EIN, you may provide the last 4 digits of the EIN, then request that the employer verify the first five digits as verification.

    • Business Name

    • The company representative’s position or relationship to the company

  2. During the initial contact, keep the focus on the information necessary to verify the income. The employer may ask other questions not relevant to the verification of the income documents, such as:

    • If you are questioned on the reason for your call, explain you are reviewing income and withholding information reported on the income document.

    • If the employer questions why you need the income information and/or questions whether we have the income and withholding information (Form W-2/Form 1099, etc.) let them know this is an accuracy check of the data.

  3. If the employer refuses to verify the information over the telephone, provide them other options, such as faxing us the information to assist in the verification. You should ask if they will:

    • Verify if the person actually worked there

    • Provide the employment dates if the person did work for them

    • Verify the figures you have, if the employer only verifies that the employee worked for them but will not provide any other information, document the information in employer notes. Update Contact Employer (CE) to disposition "Employment Only" .

    Reminder:

    Employers are not required to provide this information, but we should encourage them to do so.

  4. If the employer prefers a one-time fax, include in the next day batch fax by taking the following actions:

    • Input contact name, secure fax number and telephone number into the "Employer Keyin Information" section

    • Update the Status Information box to "Send Fax" , for every IDOC waiting for verification

    • Do NOT change the mode of contact (MOC) to "Fax Only "

    • Do not print fax

  5. If the employer chooses to receive all future verifications by fax:

    • Input contact name, secure fax number and telephone number into the "Employer Keyin Information" section.

    • Update the MOC to "Fax Only" .

  6. If an employer has a specific verification request (requests a specific person handle the request or requests all verifications are made on a particular day).

    • Notate the specific request in "Employer Notes"

    • Elevate the EIN to the lead/manager

    • The lead/manager will change the MOC to "Hold" , and reason "Management"

      Note:

      Management will determine if the National Office Interface (NOI) needs to be updated to assign these EINs to specific examiners.

  7. Notate CE "Permanent Instructions" if research or the employer indicates there are different numbers to call for different IDOC types.

  8. If the employer states they want to call IRS back (busy time for the employer/or they want the IRS to call them back), take the following actions:

    • Place the call in a callback folder/call log.

    • Place the employer in "Hold" , reason "Call Back IRS" .

    • In "Employer Notes" annotate: Call back requested (enter the time/date).

    • Check your call back list and return call at appropriate time.

  9. If the employer states the current year wage information is not available yet, take the following actions:

    • Ask when the information will be available and when we can call back.

    • Place employer in MOC "Hold" , reason "Other" .

    • Update calling instructions: Waiting for wages and withholding year-end information. Input a permanent note: "Waiting for year-end wages/WH" .

    • Notate the date information will be available in the "Employer Notes" .

    • Make a print of employer information and give to the assigned TE for follow-up.

  10. If the employer has agreed to provide the information, see IRM 25.25.3.7, Completing the Call.

Unable to Contact the Employer

  1. If the employer cannot be reached or the contact information cannot be obtained, take the appropriate action based on the table below:

    IF AND THEN
    1
    There is no number in Contact Employer (CE) or the existing number is no longer valid.
      Research for another contact. If a number is found enter the number into the phone number field on "Employer Info" tab and continue with call. If no number can be found, go to "Cannot find a good number" instructions below.
    2
    A number is found and a person to contact and you get a busy signal.
     
    1. Place the call in a callback folder/call log.

    2. Place the employer in "Hold" , reason "Call Back IRS" .

    3. In "Employer Notes" annotate: "Line busy" .

    4. Attempt to contact the company or contact person again the same day. If you only get a busy signal, research for another contact number.

    5. Attempt to call back the next day. Make a second attempt one hour later. If you only get a busy signal, research for another contact number /or call the employer to try to get another contact person.

    6. If two or more contacts have been made and no number can be found or you cannot find a good contact person, place the record in "Hold" , reason "OTHER" . Update "Employer Notes" with research information. Do not update IDOC disposition.

    3
    You cannot find a good phone number.
    You cannot find any information that the company existed.
    1. See Exhibit 25.25.3-3, Research Check Sheet, for research steps.

    2. Complete the following:

      • Input all research performed into EFDS notes in "Employer Notes"

      • Set the MOC to "Hold" , reason "Other"

    4
    You cannot find a good phone number.
    There is information the company did exist in the past and a final Form 940 / Form 94X is on file.
    1. Place call into "Hold" , reason "Other" , see Exhibit 25.25.3-3, Research Check Sheet, for research steps.

    2. Input into "Employer Notes" that a final Form 940 or 94X is on file.

    5
    You cannot find a good phone number.
    There is information the company did exist in the past and a final Form 94X is NOT on file
    1. Update "Employer Notes" with "UTV-MISC" , Do not disposition the IDOC

    2. Refer to IRM 25.25.3.13, Unable to Verify (UTV), Procedures, for UTV-MISC EIN specific procedures

    6
    Two or more contacts have been made and the employer has not called back or provided the information.
     
    1. Place in "Hold" , reason "Other"

    2. Update "Employer Notes" with "UTV-WNCB" Do not disposition the IDOC

    3. See IRM 25.25.3.13 , Unable to Verify (UTV) Procedures, for UTV-WNCB procedures

Completing the Call

  1. Once verification has been completed, the following steps must be taken in Contact Employer (CE):

    1. Locate the employer's Employer Identification Number (EIN)

    2. Select the "Work Tab"

    3. Locate the Social Security Number (SSN) on the "Work Tab"

    4. Input the first and last name of the person who verified the income document (IDOC) into the "Name box"

    5. If the contact person has permanently changed, update the "Employer Info Tab" with the new information

    6. Place the contact person you are removing from the "Employer Keyin Information" section with any phone/fax numbers into the "Employer Notes"

    7. Input the title and telephone number without parentheses into the "Position box"

      Example:

      Office Manager 123–555–7890

    8. Enter "Refused" in the appropriate field(s) if the employer contact or title is not provided

    9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    10. Include "Return Notes" , if applicable

    11. Include "Employer Notes" , if applicable

  2. IDOC Disposition Choices:

    IDOC Disposition Narrative for Disposition
    1
    Send Fax
    • A one-time fax will be used for this IDOC to obtain information from the employer.

    2
    Incorrect $
    • The wages and withholding amounts verified by the employer do not match the figures of the IDOC. When the amounts are entered, CE will automatically check the figures, considering the tolerances and the literal "Incorrect $" will display. This is a final CE disposition.

    3
    Employment Only
    • Use this disposition when the employer will only verify the taxpayer was employed or when the person you are verifying is the owner of the company and Form 94Xs are required. Contact with the company needs to be made to ensure there is no one else that can verify the information.

    • The system displays the note box. Enter the employment information (for example: dates of employment, verified employment only, etc.) provided in the EFDS return section. This is a final CE disposition.

    4
    No Response
    • This disposition should not be used. This is a final disposition that will refile the questionable return and release the refund.

    5
    Not Employed
    • This disposition is used when the employer verifies that the person listed on the IDOC was not employed or had no income from that employer. This is a final CE disposition.

    6
    Verified OK
    • Employer verified the IDOC information is correct. When this disposition is selected, actual income and actual withholding are automatically set to match the original income and withholding amounts. IDOC(s) with the disposition of "Verified OK" cause the returns to be systemically "Refiled" . This is a final CE disposition.

Batch Fax

  1. Verification Faxes are systemically generated in the Electronic Fraud Detection System (EFDS) and are printed in a batch process for transmission to the employer. The following case types cannot be printed in the batch process:

    Note:

    The Batch Fax Process will be discontinued beginning January 1, 2020.

    • Gap Faxes (the mode of contact (MOC) is not "fax only" and the employer has requested a one-time fax). These will be manually printed by the tax examiner.

    • Faxes with 2 names in the name field for the Income Document (IDOC), see IRM 25.25.3.13, Unable to Verify (UTV) Procedures, for correction of the IDOC prior to faxing to the employer.

  2. After the fax is transmitted successfully, destroy as classified waste.

  3. If the submission of the fax is unsuccessful (example - failed fax), it will be placed in "Hold" , reason "Other" until it is assigned for resolution. Upon assignment, take the following actions:

    • Verify the fax number was entered correctly onto the fax machine. If it was not, re-send the fax using the correct information.

    • If still unsuccessful, research contact employer (CE) notes for an alternative fax number. If found, re-send the fax to the company.

    • If unable to find an alternative fax number, contact the employer for a correct or updated fax number.

    • Update CE "Employer Keyin Information" section with the new number, re-print and re-send the fax.

    • If attempts to find a fax number the same day are unsuccessful, change the employer MOC to "Call OK" and update "Employer Notes" with "Changing MOC from Fax Only to Call OK. Fax number is incorrect" .

  4. When the response is received from the employer, update the IDOC disposition in EFDS.

  5. All faxed responses from the employer will be maintained for six months. Faxes can be purged and destroyed as classified waste six months after the fax was received from employer.

Phone Calls from Batch Fax

  1. Employers may call in response to the batch fax. Follow IRM 25.25.3.7, Completing the Call, to process the information provided by the employer.

    Note:

    The Batch Fax Process will be discontinued beginning January 1, 2020. The instructions in this IRM section will remain for residual inventory.

  2. If the caller asks other questions relating to the verification of income, answer the questions. See possible responses to questions in the table below:

    Note:

    This list is not all inclusive and provides some recommended responses. If you are asked a question about verification and you do not know the answer, tell the caller you will research the issue and call them back with an answer.

    Caution:

    Do NOT provide tax advice. If the employer asks questions about tax issues or account matters, refer them to 800-829-1040 for individual income tax questions or 800-829-4933 for business related tax questions.

    Caution:

    Do not contact the taxpayer to verify the income. The verification of the income must come from the employer, or authorized representative, or online information available to IRS.

    Employer Question IVO Answer
    1
    Call received is from the taxpayer being verified.
    • Advise the taxpayer we will contact the employer. Contact the employer and advise them that the verification of the income must be provided by the employer listed on the income document (IDOC) and cannot be provided by the taxpayer.

    2
    What do I do if I do not have my Form W-2 information completed yet?
    • Advise the employer to return the spreadsheet with a notation of when the Form W-2 information will be available.

    3
    What should I do if the employee is "Not Employed" ?
    • Advise the employer to fill out the fax and indicate "Not Employed" by marking either the "No income or federal withholding by SSN box" or the "No income or federal withholding by name box" .

    4
    Why are we requesting the verification?
    • Advise the employer that our department verifies Federal wage and withholding information to ensure the accuracy of IRS records.

    5
    I am not the employer you are trying to contact.

    Caution:

    This is an unauthorized disclosure issue and disclosure procedures must be followed see IRM 21.1.3.2, General Disclosure Guidelines.

    • Ask the employer to destroy the fax and follow Disclosure guidelines in the IRM.

    6
    Do I need to send a copy of the Form W-2 or just send in the completed spreadsheet?
    • Advise the employer that a copy of the Form W-2 is unnecessary, but they can submit it with the spreadsheet if they want to.

    7
    What do I do if I received a fax request to verify an employee with an Individual Taxpayer Identification Number (ITIN)? (The taxpayer identification number begins with a "9" and is being used in place of a Social Security Number (SSN)).
    • Advise the employer to check their records for the employee by both name and TIN.

    • Then, notate on the fax spreadsheet what information they have for that employee, including SSN, name, wages and withholding.

    8
    Am I required to let my employees know a request for wage verification has been made?
    • Advise the employer that informing the employee of the contact is the company's decision, however we have informed the employee we may be contacting the company.

    9
    Do I need to call to confirm that you have received my fax response?
    • Advise the employer that it is unnecessary to contact us to confirm receipt of the fax response.

Completing a Fax Verification Update

  1. When a fax verification has been received, locate the Employer Identification Number (EIN) listed on the fax in Contact Employer (CE) in Electronic Fraud Detection System (EFDS), then take the following actions:

    Note:

    When a blank or illegible fax is received, contact the employer to clarify or obtain the information.

    Employer Response Tax Examiner (TE) Action
    1
    Employer response with wage and withholding information.
    • Input the first and last name of the person who verified the income document (IDOC). If this section of fax is blank or illegible enter "Not Provided" .

    • Enter in the "Position Box" the title and telephone number of the person who provided the information.

    • See Exhibit 25.25.3-2, Common Abbreviations.

    • If the name, title, or telephone number section of fax is blank, put "Not Provided" for the information that is missing.

    • Enter the Title and Telephone Number without parentheses.

      Example:

      Office Manager 123-456-7890

    • Enter the money amount in the appropriate fields when provided. Select the appropriate disposition from the drop down menu.

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

    • Tab or click off the dollar fields to allow the disposition to update to the correct choice.

    • Include return notes and employer notes, if applicable.

    • All return notes must start with the EIN and should include any pertinent information indicated on the fax.

      Example:

      00-12345678, terminated 10-20-2018

    2
    The "No Income Box" or "Never Employed Box" is checked.
    • Update disposition in CE to "Not Employed" .

      Note:

      Do not enter zeros for the money amounts when the final IDOC dispostion is "Not Employed" .

    3
    New contact information for the employer has been provided.
    • If the employer provided updated contact information, call the employer to confirm the change.

    • Update the "Employer Info Tab" with the changes.

    • If the entity information is changed, update "Employer Info" only if new information is shown on IDRS. If not present on IDRS, advise the employer to file a Form 8822-B, Change of Address or Responsible Party - Business.

    • Place any information you remove from the "Employer Keyin Information" section into the "Employer Notes" .

    4
    The employer has a specific verification request.
    • Change the mode of contact (MOC) to "Hold" , reason "Other" .

    • Input the specific request in "Employer Notes" .

    • Elevate to the lead for assignment to a tax examiner.

    5
    The fax Indicates "No Employees" for the entire processing year and/or prior year.
    • Follow the instructions in IRM 25.25.3.6, Telephone Verification Overview.

    6
    For faxes that have been sent to the wrong business.
    • Follow Fax Phone Procedures. See IRM 21.1.3.2, General Disclosure Guidelines.

Manual Verification Procedures

  1. Income documents (IDOCs) meeting certain criteria must be manually verified. These may include returns with any of the following:

    • Unsubstantiated income or withholding

    • Multiple IDOCs for the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Taxpayer inquiries via an Operation Assistance Request (OAR)

    Note:

    If an EIN has previously been deemed Suspicious/Bogus, then manual verification is not needed and the return can be pushed to scheme.

  2. Take the following actions for returns containing multiple IDOCs for the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ :

    • Review the income documents and compare to command code (CC) IRPTR to determine if the taxpayer made an input error when inputting the IDOC EIN or the taxpayer identification number (TIN) for the IDOCs.

    • If the IDOCs can be verified, see paragraph 11 below.

    • If the IDOCs cannot be verified, continue with the procedures in paragraph 3 below.

  3. If a Notice CP 05, Information Regarding Your Refund, or a Letter 4464C, Questionable Refund 3rd Party Notification Letter, was not previously sent and contact with the employer is necessary, take the following actions:

    1. Send the Letter 4464C and use the return address code "SF" and signature code "BB" for the Return Integrity Verification Operations (RIVO) Director.

    2. Input a transaction code (TC) 971 action code (AC) 617 on CC TXMODA.

    3. If the refund needs to be stopped, see IRM 25.25.2.4, Stopping the Refund.

    4. Allow 10 days from the date the letter was sent before contacting the employer.

    Note:

    The procedure for waiting 10 days is designed to comply with Treasury Regulation 301.7602-2, which states IRS employees are prohibited from contacting persons other than the taxpayer about the collection or determination of tax without first giving the taxpayer a reasonable notice that such contacts may be made.

    Reminder:

    Taxpayers in hardship situations can provide oral authorization for third-party contact. If the taxpayer gave their oral consent to Taxpayer Advocate Service (TAS), it needs to be reflected on the OAR.

  4. At the end of the of the 10 day waiting period, initiate the verification process.

  5. Perform research using Exhibit 25.25.3-3, Research Check Sheet.

  6. If an EIN is in contact employer (CE), check the mode of contact (MOC) prior to making contact with the employer. If the MOC cannot be determined, contact the employer to determine the preferred MOC.

  7. If the employer is willing to complete the verification process while on the phone, update CE and return notes with any pertinent information and Include the following:

    • Who you spoke with from the company

    • Title and phone number

    • All verifications results such as; "Not employed" , "Verified OK" , "Incorrect dollars" (include wage/withholding amounts verified), and "UTV (if unable to verify)"

  8. If the employer requests a fax, prepare a manual fax and fax to the employer at the fax number provided.

  9. If the "Permanent Instructions" in CE indicates "RIVO has Disc information" , send a verification request via secure e-mail to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox. Include the following information in the secure e-mail:

    • Employer name that is to be verified based on research

    • Employer EIN that is to be verified based on research

    • Employee name(s) and social security number(s) (SSN) to be verified

    • Tax year to be verified

    • Name of the tax examiner (TE) verification is being sent back to

  10. If the employer has an International telephone number or requires a Spanish speaking representative to perform the verification process, send a verification request via secure e-mail to the Spanish-International mailbox ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . The secure e-mail is to include the completed checklist following information:

    • Employer name to be verified based on research

    • Employer EIN that to be verified based on research

    • Employee name(s) and SSN(s) to be verified

    • Tax year to be verified

  11. When verification has been completed for all IDOCs and/or unsubstantiated withholding, take the following actions:

    • If the IDOC is verified, manually release the refund per IRM 25.25.13.9, Releasing the Refund, disposition the return to "Refile" and update the Electronic Fraud Detection System (EFDS) notes as appropriate.

      Note:

      If the return is in the Scheme Tracking and Referral System (STARS), update the return disposition to "DL" to have it removed from STARS. A reason must be entered in STARS or EFDS Notes when requesting a return to be deleted from STARS, see Exhibit 25.25.13-1, STARS Delete Reasons.

    • If the IDOC cannot be verified, disposition the return to "Add to Scheme" , see IRM 25.25.2.5, Adding to Scheme, for adding to scheme procedures. Update EFDS notes appropriately.

    • Input/Update AMS notes as appropriate per IRM 21.2.2.4.5, Account Management Services (AMS).

  12. There may be instances when verification cannot be made. See IRM 25.25.3.13, Unable to Verify (UTV) Procedures, for UTV definitions. If a UTV note is used, input all required notes and submit to the Lead for review.

Updating Employer Disc Verification via Excel Spreadsheet

  1. The mode of contact (MOC) for all Employer Identification Numbers (EINs) on the Disc Verification Spreadsheet should appear as "Hold" , reason "Management" in Contact Employer (CE).

  2. The following actions need to be completed when updating Disc Verifications:

    1. Designated tax examiners (TE) will receive from either the lead or manager a list of daily assigned Disc verifications.

    2. The TE will access the Master Disc Verification Spreadsheet Log and locate each assigned EIN. The TE will need to confirm the information is available by checking the "Date EIN Added to DB" column for the date. If no date is present, then the payer data has not been loaded and is not available. Check the location of the employer information, password and additional search information on the Master Disc Verification Log Spreadsheet to work the verifications.

  3. Access the location of the payer data for each EIN, (i.e., Employer W2 20XX database or foldered PDF, EXCEL, Word file) as applicable, to verify each outstanding income document (IDOC) from your assigned spread sheet.

  4. Access the EIN in CE:

    1. Change the MOC to "Call OK" by answering "Yes" to the pop up box that appears. The CE record will then open for editing

    2. Select MOC: "Hold"

    3. Reason: "Management"

    4. Select the "Work Tab" in CE

    5. Sort the outstanding IDOCs by social security number (SSN)

  5. Disposition the IDOC for all SSNs from your assignment sheet:

    1. Enter your name as the verifier in the "Name" box

    2. Enter "Disc Verification" in the "Position" box

    3. Select "Not Employed" for records not found

    4. Enter the dollar amounts for records where wage and withholding amounts were indicated by the employer

    5. Select "Update"

  6. If the IDOC contains an Individual Taxpayer Identification Number (ITIN), search the original file sent by the employer for the name, ITIN and work assumed SSN, if provided. Update Electronic Fraud Detection System (EFDS) notes as required (i.e., "XX-XXXXXX Per Disc verification Not Employed by name, work assumed SSN or ITIN" or "Per Disc verification work assumed SSN is XXX-XX-XXXX").

Unable to Verify (UTV) Procedures

  1. There are times when verification cannot be completed in Contact Employer (CE), and the income document (IDOC) or Employer Identification Number (EIN) will be marked as "Unable to Verify (UTV)" . UTV reasons are divided into two categories:

    • IDOC specific

    • EIN specific

  2. Before determining an IDOC or EIN to be UTV, research must be completed using the Exhibit 25.25.3-3, Research Check Sheet.

  3. The UTV reasons listed below are IDOC specific. Any IDOC with specific unable to verify reasons will not be able to be verified through CE.

    Example:

    ("UTV-2 NAMES" will not require research from the tax examiner (TE) that finds it in CE).

    UTV Reason The UTV Description The UTV Action
    1
    Two Names (UTVNAMES)
    • The IDOC in the Electronic Fraud Detection System (EFDS) has two names in the payee/taxpayer name field. (These are normally paper IDOCs that have been manually entered incorrectly into EFDS.)

    Example:

    The IDOC in CE has the payee/taxpayer listed as: Jim and Jan Smith.

    1. Add a return note in CE containing the following:

      • the EIN (XX-XXXXXXX) of the IDOC

      • "UTV-2NAMES"

      • IDOC input with two taxpayer names, forwarded to Point of Contact (POC) for correction

      • Original Mode of Contact (MOC)

    2. E-mail a screen print of the CE screen showing the 2 names in the payee/taxpayer field and forward it to your lead/manager. This will be shared with the paper site as a training issue.

    3. Change MOC to "Hold" , reason "Other" .

    4. The receiving IVO site must complete verification on all IDOCs in CE within 3 days and change the MOC back to the original MOC found in "Return Notes" .

    2
    Employer/Employee (EE)
    The IDOC to be verified is the business owner and Form 94X and/or Form 1120 are "Not" required.

    Note:

    To verify current filing requirements use CC INOLES. CC BMFOL will show if the Form 94X and/or Form 1120 are not required.

    1. Add return note: XX-XXXXXXX UTV-EE along with the research performed/results that determined the Form 94X and/or Form 1120 are NOT required.

    2. Input "UTV-EE" in the Who at the employer gave you the information" box in CE

    3. Disposition IDOC to "Employment Only" in CE

  4. The UTV reasons below are EIN specific and apply to all IDOCs for that EIN.

    UTV Name The UTV Description UTV Action Taken
    1
    Will Not Call Back (WNCB)
    The correct employer was contacted, and the employer stated they would call back, but no call is received
    • The employer must be contacted at least two times before assigning this UTV. After the second attempt the TE will complete research per Exhibit 25.25.3-3, Research Check Sheet, and follow the instructions in paragraph (5) below.

    2
    Refused (R)
    The employer refuses to complete any verifications and any subsequent verifications, or the employer will not verify without consent of taxpayer.
    • Document all information in "Employer Notes" as to why the employer is refusing

    • Explain to the employer that a letter was sent to the employee advising them of the possible third-party contact.

    • If the employer representative wishes to validate the call; provide the employer the business toll-free number 800- 829-8374.

    • Input Account Management Services (AMS) notes under the EIN, "IVO Verification Call Attempted"

    • If the employer still refuses to provide any verification, follow the instructions in paragraph (5) below.

    3
    Work Number (WN)
    The employer uses the work number and will not verify using any other method.
    • Explain that the work number does not give the federal withholding information which is one of the items we are trying to verify. (Normally someone at the business will complete the verifications if we explain what we need and how the Work Number does not provide it.)

    • If the contact person will not comply, try to find another contact person for the employer (i.e., in payroll)

    • If unable to obtain the verification, follow the instructions in paragraph (5) below.

    4
    Miscellaneous (UTV-MISC)
    This UTV is used only when the situation does not fit any other UTV category. Example: the employer cannot be found.
    • Follow the instructions in paragraph (5) below.

    5
    Invalid EIN (UTV - INVEIN)
    The BMF information area in CE is blank. (UTV-INVEIN is mainly used to allow further processing of the IDOCs that were submitted in error. See IRM 25.25.2.2, Data Mining Screening.
    • Research IDRS command code (CC) FINDED for the EIN.

    • If the EIN has been issued and the company name found on CC FINDED "matches" the IDOC company name/information; input into the "Permanent Instruction" field the following statement: "CC FINDED shows this is a valid EIN" .

    • If the EIN is valid per CC FINDED but the company name "Does Not Match" the IDOC company name/information:

      • Remove the IDOC company information that was generated into the "Employer Keyin Information" section and place it into "Employer Notes"

      • Input the company information from CC FINDED into the "Employer Keyin Information" section.

      • Input into the "Permanent Instruction" field the following statement; "CC FINDED shows this is a valid EIN. The IDOCs to be verified will follow the procedures below"

    • If EIN has "Never been issued:"

      • Follow the instructions in paragraph 5 below.

  5. Complete the following actions along with the above instruction for UTV-WNCB, UTV-R, UTV-WN, UTV-INVEIN or UTV-MISC:

    • Update the permanent instruction on the "Employer Info" tab to "UTV-XXXX followed by your login"

    • Update "Employer Notes" (EIN first) with "UTV-XXXX " , along with a statement outlining why this UTV reason is selected. Do not disposition the IDOC

    • Place employer in "Hold" , reason "Other" for "UTV-WNCB" , "UTV-R" , "UTV-MISC" , "UTV-INVEIN" , and "UTV-WN"

    Note:

    When CC IRPTR data for the current year becomes available for the EIN in question, the IDOCs will be verified by CC IRPTR and MOC changed back to "Call OK" .

Verification Multiple Income Documents (IDOC(s)) Partial Verification Process

  1. When multiple income documents (IDOC) are listed for an Employer Identification Number (EIN), all efforts should be made to verify all IDOCs at the same time. If the entire list cannot be completed, take the following actions to update the disposition and status for the IDOCs in the "Work" tab:

    1. For the IDOCs that have completed verification, update each IDOC disposition using IRM 25.25.3.7, Completing the Call, or IRM 25.25.3.13, Unable to Verify (UTV) Procedures.

    2. Do not click "Update" until all the steps below have been completed.

    3. Highlight one of the IDOCs that need to stay in the "Work" tab.

    4. Click on the drop down arrow next to "Group Dispositions" inside the box "Who at the employer gave you the information?" , and select "Hold on Rest" from the list.

    5. A pop up window will appear to ensure you want to take this action, click on "Yes" and the window will change to the "Employer Info" tab.

    6. On the "Employer Info" tab, the mode of contact (MOC)will show as "Hold" . In the "Hold Information" section of the screen, select the reason "Call Back IRS" from the drop down menu and enter the date and time for the hold to expire.

    7. Then select "Update" .

    Note:

    The IDOCs you disposition will move into the "Completed" tab and the rest will be left under the "Work" tab.

Spanish or International Phone Calls

  1. During verification of calls that fall into the Spanish Call or International Call realm, the tax examiner (TE) should forward any specific information to the appropriate mailbox. Notify your manager via e-mail that the call requires referral to the Spanish or International mailbox.

  2. Spanish Calls - When it is determined that the IVO employee cannot communicate with the employer due to a Spanish language barrier, forward an e-mail to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox. The e-mail should include: employer name, EIN and phone number. The call should be processed as follows:

    1. Change employer mode of contact (MOC) to "Hold" , reason "Other"

    2. Input in "Employer Notes" "Spanish"

    3. Update Permanent Instruction "Spanish"

  3. International Calls - CE indicates that the employer is out of the United States, forward an e-mail to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox. The e-mail should include: employer name, EIN, and phone number. The call should be processed as follows:

    1. Change employer MOC to "Hold" , reason "Other"

    2. Input in "Employer Notes" "International"

    3. Permanent Instruction "International"

Updating Individual Taxpayer Identification Number (ITIN) Income Documents (IDOCs)

  1. An Individual Taxpayer Identification Number (ITIN) is a nine digit number that starts with a "9" and is used to establish accounts for individuals who are required to have a U. S. taxpayer identification number but do not have, and are not eligible to obtain a social security number (SSN). The ITIN allows them to file tax returns only, it does not authorize a person to work in the United States, see IRM 3.21.263.2, Overview, for additional information.

  2. Review the information in the Electronic Fraud Detection System (EFDS) for a "work assumed" SSN. Review command code (CC) IRPTR using the "work assumed" SSN and the ITIN to locate the income document information. If no information can be located for the "work assumed" SSN or ITIN in CC IRPTR, research the Social Security Administration Online Retrieval System (SSA_ORS) using the ITIN, SSN, and name. Use the chart below to disposition the income document (IDOC) in Contact Employer (CE):

    IF AND THEN
    1
    The wages and withholding can be located in CC IRPTR or SSA_ORS - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

    • Enter into the name position in CE, PER CC IRPTR or PER SSA_ORS, as applicable.

    • Update the IDOC disposition to "Verified OK" .

    • Follow the instructions in IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR, paragraph 3 prior to dispositioning an IDOC to "Verified OK" .

    2
    The wages and withholding can be located in CC IRPTR or SSA_ORS - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Does not fall within tolerance amounts above
    • Enter into the name position in CE, PER CC IRPTR or PER SSA_ORS, as applicable.

    • Enter the wages and withholding amounts in CE.

    3
    The wages and withholding can be located in CC IRPTR or SSA_ORS
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • Enter into the name position in CE, PER CC IRPTR or PER SSA_ORS, as applicable.

    • Disposition the IDOC to "Not Employed" .

    • Reminder: Do not enter any money amounts when dispositioning the IDOC to "Not Employed" as this will cause the return to "Refile" in EFDS.

    4
    The wages and withholding cannot be located in CC IRPTR or SSA_ORS.
     
    • Follow the steps in paragraph 3 to contact the employer.

    • Update CE per the employer’s response.

  3. Verification by Phone:

    1. Employees should look at the Return Notes to determine if a "work assumed" SSN was found for the taxpayer by the submitter. If there are no return notes regarding a "work assumed" SSN, the tax examiner will need to research to try to find a "work assumed" SSN. Ask the employer to research their records by taxpayer identification number (TIN) and by name and take the following actions:

      IF AND THEN
      1
      The employer verifies the wages and withholding within tolerance (stated in paragraph 2 above)
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consider the IDOC verified, see IRM 25.25.3.7, Completing the Call, to complete the verification process.
      2
      The employer verifies the wages and withholding within tolerance (stated in paragraph 2 above)
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consider the IDOC not verified and the filer as "Not Employed" , see IRM 25.25.3.7, Completing the Call, to complete the verification process.
      3
      The employer does not verify the wages or withholding within tolerance
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Input the wages and withholding as verified by the employer, see IRM 25.25.3.7, Completing the Call, to complete the verification process.
      4
      The employer does not verify the wages or withholding within tolerance
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consider the IDOC not verified and the filer as "Not Employed" , see IRM 25.25.3.7, Completing the Call, to complete the verification process.
    2. Verification by Fax: The returned fax should indicate if the taxpayer was employed by name or TIN. If the employer fails to indicate on the fax by checking the boxes, "No income or federal withholding by TIN" and the "No income or federal withholding by name" call the employer and ask them to check by name and TIN. Research EFDS return notes to see if a "work assumed" SSN was found. Follow the chart in paragraph 3a above to complete the verification process.

Internet Research Sources

Media Type Internet sites
Websearch Search Engines http://www.google.com
http://www.yahoo.com
http://www.ask.com
http://www.excite.com
Telephone Lookups http://www.411.com
http://www.whitepages.com
http://www.yellowpages.com
http://www.superpages.com
http://www.infospace.com
http://www.dogpile.com
http://www.anywho.com
http://www.canada411.com
http://www.fonefinder.com
https://www.ussearch.com
International Country Calling Codes http://www.countrycallingcodes.com
Area Code Lookups http://www.area-codes.com
Zip Code Lookups http://www.usps.com
http://www.zip-codes.com
Toll-Free http://www.inter800.com
Fax Number Search http://fax.addresses.com
Company Contacts http://www.gethuman.com
People and Company Finder http://searchbug.com
People Search http://www.dvorak.org/phonelinks.htm
http://www.Zabasearch.com
http://www.accurint.com
http://www.nass.org
County Recorders/Clerk/Deeds http://www.allthingspolitical.org/county_recorders/county_recorders.htm
Corporation Search http://www.BlackbookOnline.info
http://www.Manta.com
http://www.us.bbb.org
http://www.accurint.com
NAICS codes http://www.census.gov/epcd/www/naics.html
Multiple Search Engines Corporation and Business Filings/People Finder http://www.publicrecordcenter.com
Merlin Information Services http://www.merlindata.com
Free Mega Search Engine http://www.dogpile.com
https://www.startpage.com
http://www.search.com
Public Records http://www.publicrecordcenter.com/
Prisoner Research https://www.publicrecordcenter.com/inmatesearch.htm

Common Abbreviations

Abbreviation Term Abbreviation Term
ACCT accounting, account LVM left voice mail
ADDR address MGR manager
ADMIN administrative, administrator, administration MISC miscellaneous
AGCY agency MSG message
AR accounting rep NBR number
ASSOC associate NM name
ASST assistant ORG organization
ATTN attention OW owner
BKKPR bookkeeper MGT management
BUS business PC phone call
CB call back PRES President
CL clerk PSNL personnel
CMPL complete PYRL payroll
CNFD confidential QSTN question
    REC records, record
CO company RECV receive
CONT continue RESP response
CONTR controller SEC secretary
    SR senior
CONVR conversation SPEC specialist
COORD coordinator SRC source
CTCT contact SSN social security number
CORP corporation, Corporate STD standard
DEPT department SUPR supervisor
DIR director SYS systems
DISC CD with employee records TA tax analyst
    TECH technician
DSP disposition taxpayer taxpayer
EE employee TRE treasurer
EMPLMT employment TS tax specialist
ER employer TT trustee
EX example TXPD tax period
EXEC executor, executive VERF verify
FIN finance, financial VP vice president
FLR floor W/H withholding
GOVT government WCB will call back
HR human resources WP white pages
HRD HR director XPDT expedite
LD lead    
LM left message YR year
LV leave YTD year-to-date

Research Check Sheet

Research Results
IDRS command code (CC) research on business  
BMFOLP - (Payments under EIN)  
BMFOLI - (Filing history under EIN)  
BMFOLL - (Indication of Final Form 94X)  
Contact Employer information Research  
Employer Keyin Information Section  
Completed Tab (Name/Title and Phone number)  
BMF area phone number  
IDRS CC research on EIN  
INOLE S and T definer  
ENMOD  
TRDBV  
IDRS CC research on business owner or XREF found in previous EIN research (if applicable)  
TRDBV  
IRPTR  
Internet Research  
Business Search (Secretary of State)  
Google  
White Pages 411.com or other phone search  
Other MISC internet research  
Accurint research