25.25.4 Integrity & Verification Identity Theft Return Procedures

Manual Transmittal

September 17, 2019

Purpose

(1) This transmits revised IRM 25.25.4, Revenue Protection, Return Integrity Verification Operations Identity Theft Return Procedures.

Material Changes

(1) IRM 25.25.4.1 Corrected Policy Owner name, added stakeholders, added goals and link to manager IRM.

(2) IRM 25.25.4.1.1 Corrected Policy Owner name.

(3) IRM 25.25.4.1.2 Corrected Policy Owner name, added link to manger IRM, added link to Embedded Quality IRM.

(4) IRM 25.25.4.1.3 Corrected Policy Owner name, corrected link Policy Statement 4-21, added link to Servicewide Delegations of Authority, added section symbol for IRCs.

(5) IRM 25.25.4.1.4 Corrected Policy Owner name.

(6) IRM 25.25.4.1.5 Corrected Policy Owner name.

(7) IRM 25.25.4.1.6 Added procedures for restricted accounts, added reminder and link to Taxpayer Bill of Rights.

(8) IPU 18U1302 issued 10-05-2018 IRM 25.25.4.2 Corrected IRM reference link.

(9) IRM 25.25.4.4 Added period to first bullet in paragraph 2.

(10) IPU 18U1302 issued 10-05-2018 IRM 25.25.4.5 Corrected IRM reference links, rearranged order of procedures.

(11) IRM 25.25.4.5 Added letter title, spelled out acronyms, corrected IVO to RIVO, corrected IRM links.

(12) IPU 18U1302 issued 10-05-2018 IRM 25.25.4.6 Corrected IRM reference links, rearranged order of procedures.

(13) IRM 25.25.4.6 Added letter title, spelled out acronyms, corrected IVO to RIVO, corrected IRM links.

(14) IPU 18U1302 issued 10-05-2018 IRM 25.25.4.7 Added reminder for usage of CMODE.

(15) IRM 25.25.4.7 Wording corrected per Plain Writing Guidelines, spelled out acronyms, corrected IRM links.

(16) Exhibit 25.25.4-1 Corrected IRM links.

(17) Exhibit 25.25.4-2 Removed comma in box 3.

(18) Editorial changes made throughout the IRM section.

Effect on Other Documents

IRM 25.25.4 dated October 1, 2018 is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - IPU 18U1302 issued 10-05-2018.

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 resolving individual master file identity theft returns in the Electronic Fraud Detection System (EFDS) and the Scheme Tracking and Referral System (STARS).

  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 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, Requirements for a statutory notice, including 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 25.6, Statute of Limitations

    • IRM 21, Customer Account Services

    • IRM 2, Information Technology

    • IRM 3, Submission Processing

  2. Letters associated with the procedures in this IRM are as follows:

    • Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter

    • Letter 0239C, TIN-Related Problem Resolution

  3. 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.

  4. 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.

Identity Theft (IDT) Returns

  1. When Identity Theft (IDT) is determined, all income documents (IDOC) on all associated returns must be verified via Contact Employer (CE), manually, or using Command Code (CC) IRPTR data when available. An employee may be required to notify the IDT victim. See IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506. In cases of IDT, if a "confirmed good address" was provided by the Social Security Number (SSN) owner, the Tax Examiner (TE) will issue a Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter.

  2. An identity theft determination has been made by Integrity & Verification Operation (IVO) when the account contains an unreversed transaction code (TC) 971 action code (AC) 506 with one of the following MISC fields:

    Note:

    This list is not all inclusive.

    • WI IVO OMM

    • WI IVO OMMGB

    • WI PRP OTHER1

    • WI IVO RFND

    • WI PRP DDB

Identity Theft Return Categories

  1. Potential Identity Theft (IDT) returns are separated in Electronic Fraud Detection System (EFDS) into categories for the purpose of identifying, referring, or adjusting Master File (MF) accounts for IVO. The category determines the inventory type in EFDS.

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Category 7 Process - Identity Theft (IDT) Determination

  1. Identity Theft (IDT) occurs when a Social Security Number (SSN) is used by someone who is not the true taxpayer and files a fraudulent return without the SSN owners knowledge/consent.

    Reminder:

    Assessment Statute Expiration Date (ASED) Considerations - If it has been determined that the TC 150 was created by an incorrect return posting to an account, a TC 560 may need to be input to correct the ASED. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues.

  2. The following are some ways to determine that a false filing has occurred and the true taxpayer or taxpayer identification number (TIN) owner has/or has not filed:

    • Special agent information.

    • A signed Form 14039, Identity Theft Affidavit, or submitted correspondence stating the taxpayer did not file the tax return.

    • A duplicate filing condition (-A Freeze) occurs when two returns are filed using the same SSN and tax period. Often one return is filed by the true taxpayer and one by someone else using the true taxpayer's SSN.

Identity Theft (IDT) Category 7 — Single Return/Deceased/X-REF - No Lost Refund Process

  1. An Identity Theft (IDT) return posted, the refund was stopped, and the true taxpayer did not file a return or filed jointly under a cross-reference (X-REF) Taxpayer Identification Number (TIN). Check Integrated Data Retrieval System (IDRS) and review the account information to determine if the case involves a single return, deceased taxpayer or cross-reference TIN joint filing issue.

    Note:

    When resolving an IDT case manually, include the appropriate actions to resolve the account if the issues below are present:

    • If the IDT return filing status is Married Filing Jointly (MFJ) or Married Filing Separate (MFS) and the spousal name listed is not the spouse of the primary taxpayer, correct the filing status and name line on the primary TIN to remove the spousal information. Follow the IDT instructions below as applicable on the spousal TIN to input the IDT marker, correct the address and send the Letter 4310C as appropriate.

    • If the IDT return filing status is MFJ or MFS and the spousal name listed is the spouse of the primary taxpayer, follow the instructions below for input to the spousal account to input the IDT marker, correct the address and send the Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter, as appropriate.

      Note:

      For MFJ cases, issue one Letter 4310C to the joint name line.

    • If in reviewing the account, it is identified that other tax periods with Return Integrity Verification Operations (RIVO) involvement are affected by identity theft, then all affected active tax years must be resolved at the same time.

      Note:

      Active tax years are tax years with an open issue, such as a credit or debit balance.

    IF THEN
    1
    Single return or Deceased taxpayer with no X-REF SSN
    1. For current year returns, input transaction code (TC) 971 action code (AC) 850.

    2. Reverse all offsets and credit transfers. For Treasury Offset Program (TOP) Offsets, see IRM 21.4.6.4.2.12, TOP Offsets Involving ID Theft. For credit transfers see IRM 21.5.8, Credit Transfers, include a TC 570 as required.

    3. Update command code (CC) DUPED as required for primary, secondary and dependents as appropriate, see IRM 21.6.1.7.1, Command Code DUPED.

    4. If not deceased, update CC ENMOD to the confirmed good address provided by the TIN owner. If no confirmed good address was provided, update the address to the Service Center Address. See IRM 25.23.2.3.6, When to Update the Victim's Address.

    5. Exception: If there is no current contact with the TIN owner and the year being resolved is an older (prior) year and the account contains non-identity theft subsequent or current year filings, do not change the address to the Service Center Address, leave the address as it is on CC ENMOD.

    6. Input an adjustment to zero out the data on the module, include a RC 139, a Hold Code (HC) "4" , and a posting delay (PD) code of "1" , on the adjustment.

    7. If the identity theft return contained Premium Tax Credit (PTC) or Shared Responsibility Payment (SRP) amounts, see IRM 21.6.3.4.2.12, Premium Tax Credit.

    8. Send a Letter 4310C to the taxpayer. If the address is updated to the Service Center address, do not send Letter 4310C.

      Exception:

      If the account contains a TC 971 AC 505, see the following IRMs for the appropriate letter to send; for incident numbers IR20150521512, IR20150521555, IR20150521556, see IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution. For incident numbers IR20160127510, IR20160127513 or IR20160614508, see IRM 25.23.2.11.2.2, All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY.

    9. Do not send a Letter 4310C to a deceased taxpayer. Letters for deceased taxpayers should only be sent to the deceased taxpayer's representative or surviving spouse.

    10. Input a TC 971 AC 506 with the appropriate MISC field, see Exhibit 25.25.4-1, Miscellaneous Fields Used When inputting Transaction Code (TC) 971 Action Code (AC) 506. (Do not input a TC 971 AC 506 when a TC 971 AC 524 is being input on the account.)

    11. If the taxpayer was deceased prior to the tax year, then input a TC 971 AC 524, with the MISC field, "WI PREREF DECD" , (Return Integrity Compliance Services (RICS) only). See Exhibit 25.23.2-14, TC 971 AC 524 - Locking SSNs - Applies to IMF Accounts Only.

    12. Update Scheme Tracking and Referral System (STARS) Return Status Disposition to Cat "7" , "CL" . Update Electronic Fraud Detection System (EFDS) notes as appropriate.

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

    14. Close all RIVO IDRS control bases.

    2
    Single return or Deceased taxpayer with X-REF SSN
    1. For current year returns, input TC 971 AC 850.

    2. Reverse all offsets and credit transfers. For TOP Offsets, see IRM 21.4.6.4.2.12, TOP Offsets Involving ID Theft. For credit transfers see IRM 21.5.8, Credit Transfers, include a TC 570 as required.

    3. Update CC DUPED as required for primary, secondary and dependents as appropriate, see IRM 21.6.1.7.1, Command Code DUPED.

    4. If not deceased, update CC ENMOD to the confirmed good address provided by the TIN owner. If no confirmed good address was provided, update the address to the Service Center Address. See IRM 25.23.2.3.6, When to Update the Victim's Address.

    5. Exception: If there is no current contact with the TIN owner and the year being resolved is an older (prior) year and the account contains non-identity theft subsequent or current year filings, do not change the address to the Service Center Address, leave the address as it is on CC ENMOD.

    6. Input an adjustment to zero out the data on the module include RC "139" , a HC "4" , and a PD code of "1" , on the adjustment.

    7. If the identity theft return contained Premium Tax Credit (PTC) or Shared Responsibility Payment (SRP) amounts, see IRM 21.6.3.4.2.12, Premium Tax Credit.

    8. Send a Letter 4310C to the taxpayer. If the address is updated to the Service Center address, do not send Letter 4310C.

      Exception:

      If the account contains a TC 971 AC 505, see the following IRMs for the appropriate letter to send; for incident numbers IR20150521512, IR20150521555, IR20150521556, see IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution. For incident numbers IR20160127510, IR20160127513 or IR20160614508, see IRM 25.23.2.11.2.2, All Employees Resolving Tax-Related Issues- When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY.

    9. Do not send a Letter 4310C to a deceased taxpayer. Letters for deceased taxpayers should only be sent to the deceased taxpayer's representative or surviving spouse.

    10. Input a TC 971 AC 506 with the appropriate MISC field, see Exhibit 25.25.4-1, Miscellaneous Fields Used When inputting Transaction Code (TC) 971 Action Code (AC) 506. (Do not input a TC 971 AC 506 when a TC 971 AC 524 is being input on the account.)

    11. If the taxpayer was deceased prior to the tax year, input a TC 971 AC 524, with the MISC field, "WI PREREF DECD" , (RICS only). See Exhibit 25.23.2-14, TC 971 AC 524 - Locking SSNs - Applies to IMF Accounts Only.

    12. If a credit is available on the X-REF SSN account, review the account and determine if the credit should be released. Take the appropriate actions to release or credit elect the overpayment see IRM 21.6.3.4.2.1, Outstanding Balance Considerations Prior to Refund or Credit-Elect. Do not release any credits that may be held by another function.

    13. Update STARS Return Status Disposition to Cat "7" , "CL" , Update EFDS notes as appropriate.

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

    15. Close all RIVO IDRS control bases.

Identity Theft (IDT) Category 7 — Single Return/Deceased/X-REF - Lost Refund Process

  1. An Identity Theft (IDT) return posted, the refund was not stopped, and the true taxpayer did not file a return or filed jointly under a cross-reference (X-REF) Social Security Number (SSN). Check Integrated Data Retrieval System (IDRS) and review the account information to determine if the case involves a single, deceased or X-REF SSN joint filing issue.

    Note:

    When resolving an IDT case manually, include the appropriate actions to resolve the account if the issues below are present:

    • If the IDT return filing status is Married Filing Jointly (MFJ) or Married Filing Separate (MFS) and the spousal name listed is not the spouse of the primary taxpayer, correct the filing status and name line on the primary SSN to remove the spousal information. Follow the IDT instructions below as applicable on the spousal SSN to input the IDT marker, correct the address and send the Letter 4310C as appropriate. See IRM 25.23.2.3.6, When to Update the Victim's Address.

    • If the IDT return filing status is MFJ or MFS and the spousal name listed is the spouse of the primary taxpayer, follow the instructions below for input to the spousal account to input the IDT marker, correct the address and send the Letter 4310C, IRS Identified ID Theft Post-Adjustment Letter, as appropriate.

      Note:

      For MFJ cases, issue one Letter 4310C to the joint name line.

    • If in reviewing the account, it is identified that other tax periods with Return Integrity Verification Operations (RIVO) involvement are affected by IDT, then all affected active tax years must be resolved at the same time.

      Note:

      Active tax years are tax years with an open issue, such as a credit or debit balance.

    Caution:

    Check command code (CC) TXMODA for a history item or an open control base containing "BKLD" , for an indication of IVO's External Lead Process. This notation could indicate a potential TC 720 or a TC 841 may be posting to the module and require contact with the External Lead Point of Contact (POC). See Servicewide Electronic Research Program (SERP) Job Aids, Return Integrity Verification Operations, External Lead Point of Contact, for additional guidance.

    IF THEN
    1
    Single return or Deceased taxpayer with no X-REF SSN
    1. For current year returns, input transaction code (TC) 971 action code (AC) 850.

    2. Reverse all offsets and credit transfers. For Treasury Offset Program (TOP) Offsets, see IRM 21.4.6.4.2.12, TOP Offsets Involving ID Theft. For credit transfers see IRM 21.5.8, Credit Transfers, include a TC 570 as required.

    3. Reverse any lost refunds using CC IDT48/CC IDT58/CSO48/CSO58/ELP45 as appropriate. IRM 2.4.61, Command Code IDT48/IDT58/RPM48/RPM58/CSO48/CSO58/ELP45.

    4. Update CC DUPED as required for primary, secondary and dependents as appropriate, see IRM 21.6.1.7.1, Command Code DUPED.

    5. If not deceased, update CC ENMOD to the confirmed good address provided by the TIN owner. If no confirmed good address was provided, update the address to the Service Center Address. See IRM 25.23.2.3.6, When to Update the Victim's Address.

    6. Exception: If there is no current contact with the TIN owner and the year being resolved is an older (prior) year and the account contains non-identity theft subsequent or current year filings, do not change the address to the Service Center Address, leave the address as it is on CC ENMOD.

    7. Input an adjustment to zero out the data on the module, include a RC "139" , a Hold Code (HC) "4" , and a PD code of "1" , on the adjustment.

    8. If the identity theft return contained Premium Tax Credit (PTC) or Shared Responsibility Payment (SRP) amounts, see IRM 21.6.3.4.2.12, Premium Tax Credit.

    9. Send a Letter 4310C to the taxpayer. If the address is updated to the Service Center address, do not send Letter 4310C.

      Exception:

      If the account contains a TC 971 AC 505, see the following IRMs for the appropriate letter to send; for incident numbers IR20150521512, IR20150521555, IR20150521556, see IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution. For incident numbers IR20160127510, IR20160127513 or IR20160614508, see IRM 25.23.2.11.2.2, All Employees Resolving Tax-Related Issues- When addressing accounts with TC 971 AC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY.

    10. Do not send a Letter 4310C to a deceased taxpayer. Letters for deceased taxpayers should only be sent to the deceased taxpayer's representative or surviving spouse.

    11. Input a TC 971 AC 506 with the appropriate MISC field, see Exhibit 25.25.4-1, Miscellaneous Fields Used When inputting Transaction Code (TC) 971 Action Code (AC) 506. (Do not input a TC 971 AC 506 when a TC 971 AC 524 is being input on the account.)

    12. If the taxpayer was deceased prior to the tax year, input a TC 971 AC 524, with the MISC field, "WI PREREF DECD" , (Return Integrity Compliance Services (RICS) only). See Exhibit 25.23.2-14, TC 971 AC 524 - Locking SSNs - Applies to IMF Accounts Only.

    13. Update Scheme Tracking and Referral System (STARS) Return Status Disposition to Cat "7" , "CL" . Update Electronic Fraud Detection System (EFDS) notes as appropriate.

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

    15. Close all RIVO IDRS control bases.

    2
    Single return or Deceased taxpayer with X-REF SSN
    1. For current year returns, input TC 971 AC 850.

    2. Reverse all offsets and credit transfers. For TOP Offsets, see IRM 21.4.6.4.2.12, TOP Offsets Involving ID Theft. For credit transfers see IRM 21.5.8, Credit Transfers, include a TC 570 as required.

    3. Reverse any lost refunds using CC IDT48/CC IDT58/CSO48/CSO58/ELP45 as appropriate. IRM 2.4.61, Command Code IDT48/IDT58/RPM48/RPM58/CSO48/CSO58/ELP45.

    4. Update CC DUPED as required for primary, secondary and dependents as appropriate, see IRM 21.6.1.7.1, Command Code DUPED.

    5. If not deceased, update CC ENMOD to the confirmed good address provided by the TIN owner. If no confirmed good address was provided, update the address to the Service Center Address. See IRM 25.23.2.3.6, When to Update the Victim's Address.

    6. Exception: If there is no current contact with the TIN owner and the year being resolved is an older (prior) year and the account contains non-identity theft subsequent or current year filings, do not change the address to the Service Center Address, leave the address as it is on CC ENMOD.

    7. Input an adjustment to zero out the data on the module include RC "139" , a HC "4" , and a PD code of "1" , on the adjustment.

    8. If the identity theft return contained Premium Tax Credit (PTC) or Shared Responsibility Payment (SRP) amounts, see IRM 21.6.3.4.2.12, Premium Tax Credit.

    9. Send a Letter 4310C to the taxpayer. If the address is updated to the Service Center address, do not send Letter 4310C.

      Exception:

      If the account contains a TC 971 AC 505, see the following IRMs for the appropriate letter to send; for incident numbers IR20150521512, IR20150521555, IR20150521556, see IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution. For incident numbers IR20160127510, IR20160127513 or IR20160614508, see IRM 25.23.2.11.2.2, All Employees Resolving Tax-Related Issues- When addressing accounts with TC 505 IR20160127510, IR20160127513 and IR20160614508 ONLY.

    10. Do not send a Letter 4310C to a deceased taxpayer. Letters for deceased taxpayers should only be sent to the deceased taxpayer's representative or surviving spouse.

    11. Input a TC 971 AC 506 with the appropriate MISC field, see Exhibit 25.25.4-1, Miscellaneous Fields Used When inputting Transaction Code (TC) 971 Action Code (AC) 506. (Do not input a TC 971 AC 506 when a TC 971 AC 524 is being input on the account.)

    12. If the taxpayer was deceased prior to the tax year, input a TC 971 AC 524, with the literal, "WI PREREF DECD" , (RICS only). See Exhibit 25.23.2-14, TC 971 AC 524 - Locking SSNs - Applies to IMF Accounts Only.

    13. If a credit is available on the X-REF SSN account, review the account and determine if the credit should be released. Take the appropriate actions to release or credit elect the overpayment see IRM 21.6.3.4.2.1, Outstanding Balance Considerations Prior to Refund or Credit-Elect. Do not release any credits that may be held by another function.

    14. Update STARS Return Status Disposition to Cat "7" , "CL" , Update EFDS notes as appropriate.

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

    16. Close all RIVO IDRS control bases.

Reversing Identity Theft (IDT) Lost Refunds

  1. In cases where an Identity Theft (IDT) return was filed, and the refund was lost, the refund needs to be moved off the good taxpayer's account. This must be done to ensure the account reflects only the good taxpayer's information. Command Code (CC) IDT48 and CC IDT58 must be used to move refunds lost from the account, instead of completing Form 3809, Miscellaneous Adjustment Voucher. These command codes credit the Taxpayer Identification Number (TIN) owner’s account and move the refund to the General Ledger 1545 account. CC IDT48 is used to move an entire refund. CC IDT58 is used to move the unrecovered portion of a partially recovered refund, see IRM 2.4.61, Command Code IDT48/IDT58/RPM48/RPM58/CSO48/CSO58/ELP45. Use CMODE to direct the request to the correct service center, see IRM 2.4.61.2, Terms/Definitions/Acronyms.

    Exception:

    If the lost refund is the result of an irreversible child support offset use CC CSO48 and CC CSO58, see IRM 2.4.61.9, Command Code CSO48 - Request Formatted Input Screen, and IRM 2.4.61.10, Command Code CSO58 - Request Formatted Input Screen.

  2. In certain circumstances, it may be necessary to reverse previous actions taken that debited the General Ledger 1545 account with the posting of a transaction code (TC) 841 or TC 700 to the tax account. For example, duplicate TC 841s, actual credit has been returned to the module etc. To reverse a TC 841 or TC 700 posted in error, see IRM 25.23.4.15, Form 3245/3809 Reversals.

Miscellaneous Fields Used When Inputting Transaction Code (TC) 971 Action Code (AC) 506

  1. The chart describes the reasons and values of the miscellaneous fields when inputting a TC 971 AC 506.

Description Input (space after WI & IVO)
1
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
WI IVO OMM (This literal may appear on CC ENMOD, but is no longer used when inputting new IDT markers.)
2
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

The MISC field "OMMGB" will issue an IP PIN Notice CP 01A to the taxpayer, see IRM 25.23.2.4.1, Tracking and Reporting Identity Theft Cases - Identity Theft Indicators.

WI IVO OMMGB (This literal may appear on CC ENMOD, but is no longer used when inputting new IDT markers.)
3
IDT return was filed but no return was filed by the TIN owner and no confirmed good address has been provided.
WI IVO RFND
4
IDT return was filed and a return was filed by the TIN owner, or a confirmed good address has been provided for the TIN owner.

Note:

The MISC field "OTHER1" will issue an IP PIN Notice CP 01A to the taxpayer see IRM 25.23.2.4.1, Tracking and Reporting Identity Theft Cases - Identity Theft Indicators.

WI PRP OTHER1
5
IDT return was filed and was selected by the Taxpayer Protection Program (TPP) processes and there is no return filed by the TIN owner and no confirmed good address for the TIN owner.
WI PRP DDB
6
The taxpayer is a victim of the "Get Transcript Incident" or the "Get an Electronic Filing PIN Incident" , indicated by a TC 971 AC 505 on CC ENMOD see the following IRMs: for incident numbers IR20150521512, IR20150521555, IR20150521556, see IRM 25.23.2.10.2, Get Transcript Incident - Tax Related Case Resolution. For incident numbers IR20160127510, IR20160127513 or IR20160614508, see IRM 25.23.2.11.2.2, All Employees Resolving Tax-Related Issues - When addressing accounts with TC 971 AC 505-IR20160127510, IR20160127513 and IR20160614508 ONLY.
WI AM OTHER

Miscellaneous Fields Used When Inputting Transaction Code (TC) 972 Action Code (AC) 506

  1. The miscellaneous field displays the reason for the reversal. See the chart below for reasons and values for the miscellaneous field.

    Reminder:

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

Description Input (space after WI & IVO)
1
The taxpayer requests the TC 971 be reversed. (Only reverse the TC 971 AC 506 after explaining to the taxpayer the risks of not having the Identity Theft protection on the account.)
WI IVO TPRQ
2
The TC 971 was due to a typographical mistake or another internal mistake.
WI IVO IRSERR
3
The TC 971 is causing a negative impact on another internal process or system and must be reversed to discontinue the negative impact.
WI IVO IRSADM
4
The original Identity Theft incident claim was determined to be fraudulent.
WI IVO FALSE
5
The reason for the TC 971 reversal does not meet any of the above reason descriptions.
WI IVO OTHER