25.25.5 General Correspondence Procedures

Manual Transmittal

September 17, 2018

Purpose

(1) This transmits revised IRM 25.25.5, Revenue Protection, General Correspondence Procedures.

Material Changes

(1) Editorial changes made throughout the IRM section.

(2) IPU 18U0097 issued 01-10-2018 Revised section name, General Correspondence Procedures

(3) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.1 Corrected title from Return Integrity and Compliance (RICS) to Return Integrity Operations (RIO).

(4) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.1 Update list of processes

(5) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.1.1 Corrected title from Return Integrity and Compliance (RICS) to Return Integrity Operations (RIO).

(6) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.1.2 Add quality control

(7) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.1.3 Added IRC descriptions.

(8) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.1.3 Added IRC title

(9) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.1.4 Corrected title from Return Integrity and Compliance (RICS) to Return Integrity Operations (RIO).

(10) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.1.5 remove acronym table and add a link to Acronym table in IRM 25.25.1.1.5

(11) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.1.6 add restricted access link

(12) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.2 Request for Information During Screening and Verification, moved to IRM 25.25.2.21

(13) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.2 Updated IRM link

(14) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.2.1 Added Letter 0239C, added IRM reference to undeliverable procedures.

(15) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.2.1 Added box 9 and 10 for Form 4506

(16) IPU 18U0959 issued 06-19-2018 IRM 25.25.5.2.1.1 New section Undeliverable Correspondence Research.

(17) IPU 18U1197 issued 08-24-2018 IRM 25.25.5.2.1.1 Added editorial changes

(18) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.3.1 update entity fabrication link

(19) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.3 Unpostable (UP) 147 Reason Codes (RC) - removed

(20) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.3.1 Resolving Unpostable (UP) 147 Reason Code (RC) 6 and 7 - removed

(21) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.3.2 Command Codes (CC) Associated with Unpostable (UP) 147 Reason Code (RC) 6 and 7 Cases - removed

(22) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.3.3 Unpostable (UP) 147 Reason Code (RC) 8 - moved to IRM 25.25.6.8 as Archived - Deleted Return Reprocessing Procedures

(23) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.4 renumbered to IRM 25.25.5.2

(24) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.4.1 renumbered to IRM 25.25.5.2.1, added reference to Notice CP 05A, IRM links corrected

(25) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.5 renumbered to IRM 25.25.5.3

(26) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.6 Frivolous Returns removed - moved to IRM 25.25.2.20

(27) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.7 MFT 32 Procedures removed - moved to IRM 25.25.6.7

(28) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.7.1 MFT 32 Reversal Procedures removed - moved to IRM 25.25.6.7.1

(29) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.7.1.1 Taxpayer Protection Program (TPP) Assistors, Taxpayer Assistance Center (TAC) Assistors, and Identity Theft Victims Assistance (IDTVA) Assistors MFT 32 Reversal Procedures removed - moved to IRM 25.25.6.7.1.1

(30) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.7.1.2 Integrity and Verification Operation (IVO) Employees MFT 32 Reversal Procedures removed - moved to IRM 25.25.6.7.1.2

(31) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.8 moved to IRM 25.25.8.13

(32) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.8(3) change 30 days to 60 days

(33) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.8 Limited Direct Deposit Refund Procedures removed - moved to IRM 25.25.8.13

(34) IPU 17U1369 issued 09-26-2017 IRM 25.25.5.9.1(1) add note for -O freeze

(35) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.9 and IRM 25.25.5.9.1 moved to IRM 25.25.11

(36) IPU 18U0097 issued 01-10-2018 IRM 25.25.5.9 Returns with Statute Issues removed - moved to IRM 25.25.11

(37) IPU 17U1552 issued 11-02-2017 IRM 25.25.5.10 entity fabrication moved to IRM 25.25.1.2

(38) IPU 18U1197 issued 08-24-2018 Exhibit 25.25.5-1 Added numbering

(39) IPU 18U0097 issued 01-10-2018 Exhibit 25.25.5-2 Command Code (CC) FRM77 TC 971 AC 111 Input Screen removed - moved to Exhibit 25.25.6-7

(40) IPU 18U1197 issued 08-24-2018 Exhibit 25.25.5-2 Added numbering

(41) IPU 18U0097 issued 01-10-2018 Exhibit 25.25.5-3 renumbered to Exhibit 25.25.5-2

(42) IPU 17U1552 issued 11-02-2017 Exhibit 25.25.5-4 move exhibit to IRM 25.25.11

Effect on Other Documents

IRM 25.25.5 dated September 13, 2017 is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - IPU 17U1369 dated 09-26-2017, IPU 17U1552 dated 11-02-2017, IPU 18U0097 dated 01-10-2018 and IPU 18U1197 issued 8-24-2018.

Audience

Campus employees in Integrity & Verification Operation, Return Integrity Operations

Effective Date

(09-17-2018)

Denise D. Davis
Director, Return Integrity Operations
Wage and Investment Division

Program Scope and Objectives

  1. Purpose and Program Goals: This IRM section provides guidance for Integrity and Verification Operation (IVO) employees when screening 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 IVO employees.

  2. Audience: The audience intended in this IRM is IVO employees.

  3. Policy Owner: The Return Integrity Operations (RIO) is the policy owner of this program.

  4. Program Owner: RIO is the program office responsible for oversight over this program.

  5. This section provides guidelines for the following IVO processes:

    • General Correspondence Letters/Notices

    • 4464C Integrated Automation Technologies (IAT) Letter Tool Rejects

Background

  1. Return Integrity Operations (RIO) 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 to track the inventory, including receipts and closures.

  2. A quality control program is in place to review all processes to ensure accuracy and effectiveness.

Authority

  1. Refer to the following:

    • IRM 1.2.13.1.10, Policy Statement 4-21.

    • IRM 1.1.13, Wage and Investment Division.

    • 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 Operations (RIO) has responsibility for information in this IRM. Information is published in the IRM on a yearly basis.

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

  3. The Chief of the Data Management and Operation Staff (DMOS) is responsible for ensuring this IRM is timely submitted to publishing each year.

  4. More information can be found in IRM 1.1.13.7, Return Integrity and Compliance Services.

Acronyms

  1. For a list of Acronyms used throughout Integrity and Verification Operation (IVO) 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.

    Exception:

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

General Correspondence Letters/Notices

  1. Responses to Integrity & Verification Operation (IVO) letters may be received from the taxpayer or their representative via mail, fax, Form 4442 , Inquiry Referral, or Operation Assistance Request (OAR). Follow the instructions below to respond to the inquiry, resolve the account, or take the next appropriate actions to complete the IVO processes.

  2. If a third party, such as the taxpayer’s employer, who is not the taxpayer’s authorized representative, contacts the IRS and requests wage substantiation information or other information about the taxpayer’s return or account, the IRS cannot provide that information or any other specific information about the taxpayer or his/her return. The IRS can advise the third party that, in general, the IRS needs the following documentation to substantiate a taxpayer’s reported wages and withholding:

    • A copy or copies of a wage statement for the year of the return.

    • A letter from the employer on the company letter head. Letters from employers must have company letter head and show income and withholding amounts. Regardless of verification of income method, the taxpayer must provide a name and telephone number of a company contact.

    • Similar statements such as pay stubs must show employer information including Employer Identification Number (EIN) and a contact name and telephone number. Pay stubs also must show the taxpayer information, including taxpayer identification number (TIN).

  3. If correspondence or a referral is received stating the return filed by the taxpayer was backed out in error under the Identity Theft Procedures, follow the procedures in IRM 25.25.13.3.1 , Previously Identified as Identity Theft,, to verify and reinstate the return with the IAT x-Claim tool.

  4. Beginning in July 2011, the "2-D Bar Code" program was implemented. Some of the notices will still display the entire TIN while others will have the TIN redacted/masked (e.g. XXX-XX-1234). In order to identify the account, a "hand held" bar code scanner must be used to read the taxpayer account information. If the scanner cannot read the bar code, Command Code (CC) TPIIP must be used. For more information on the CC, refer to IDRS Command Code Job Aid located on SERP under IRM Supplements. Additional CP notices utilizing this configuration requiring the bar code scanner will be rolled out periodically in the future. Notices CP05/CP05A rolled out in early 2012.

General Replies to Letters/Notices and Undeliverable Mail

  1. All Integrity & Verification Operation (IVO) incoming correspondence and referrals will be sorted or resolved per the charts below:

    IF THEN
    1
    The letter or notice is returned undeliverable (may have a yellow sticker from the post office). (For the following letters/notices: 4464C/ 4800C/ 4883C/ 5071C/ 5447C/ 5747C/ CP05/ CP05A/ CP53A/ CP53B/ CP53D/ 105C/ 106C2645C).
    Destroy the notice or letter as classified waste, per IRM 21.5.1.4.10, Classified Waste.
    2
    An undeliverable Letter 4310C or Letter 0239C is received.
    Research the account for a better address and reissue the letter, see IRM 25.25.5.2.1.1Undeliverable Correspondence Research.
    3
    The mail is 'misdirected' mail not in response to an IVO letter or addressed by the taxpayer to an IVO stop number.
    Return the mail to the originating function or forward as appropriate. See Austin DRG for additional forwarding information.
    4
    The envelope is addressed by the taxpayer to an IVO stop number but does not belong to IVO because there has been no IVO involvement on the account.
    Return the mail to the originating function or forward as appropriate. (Do not return mail directed to an IVO stop number to Submission Processing (SP) Mail Class.) See Austin DRG for additional forwarding information.
    5
    A Letter 4800C or a Letter 3219C is received in IVO at a site other than Stop 763 in Atlanta.
    Forward the Letter 4800C or Letter 3219C to IVO in Atlanta at Stop 763. Exception: Destroy as classified waste any undeliverable Letter 4800C, see IRM 21.5.1.4.10, Classified Waste.
    6
    A Notice CP 05A is received at a site other than Stop 6579 AUSC.
    Forward the Notice CP 05A to Stop 6579 AUSC.
    7
    There is a -L Freeze condition on the account.
    • Review CC AMDISA to determine the status of the Examination (Exam) case. If the status is greater than 08, route the response to Exam per the AIMS Status Code and the QRP Source and Project Code. See IRM 4.19.14.8.2, QRP Source Code and Project Codes, and My SB/SE Employee Group Code for additional guidance and routing information.

      Note:

      If the information is already present or is available on AMS or IDRS, classify waste the response

    • Review the taxpayer identification number (TIN) in the Electronic Fraud Detection System (EFDS) for a prior return filing for the same tax period. If a prior return filing is found, input return notes in EFDS and if necessary, complete the verification process. Push the return to Scheme and update the return disposition to "CAT 5 CL" .

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    8
    There is a -A Freeze condition and/or an open control to Accounts Management (AM) on the account.
    • Review the case image in Accounts Management Services (AMS) to determine if the information provided in the response is necessary for AM to resolve their case. If the information is already present or is available on AMS or IDRS, classify waste the response. If a Form 14039 is attached with an original signature and it is not present in AMS images, route the Form 14039 to the Image Control Team (ICT) using the Form 12305, Routing Slip. If the AMS image contains a Form 14039, destroy the Form 14039 as classified waste. If the response includes a Form 1040X, Amended U.S. Individual Income Tax Return, route the Form 1040X and envelope to the Image Control Team (ICT) using the RICS IVO AR Adjustment Request Form.

    • Review the TIN in EFDS for a prior return filing for the same tax period. If a prior return filing is found, input return notes in EFDS and if necessary, complete the verification process. Push the return to Scheme and update the return disposition to "CAT 5 CL" .

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    9
    There is a Form 4506-T , Request for Transcript of Tax Return, or a written request is attached to the TPP response
    Forward request to RAVIS. See IRM 21.3.6.4.3.1, Return Copy Procedures
    10
    There is a Form 4506-F, Request for Copy of Fraudulent Tax Return, or a written request is attached to the TPP response
    See IRM 25.23.3.2.7.1, Intake - Accepting Form 4506-F or Written Requests for copies of Fraudulent Return(s), for additional guidance and procedures.
  2. The reply indicates the taxpayer is a victim of identity theft, has a Form 14039, Identity Theft Affidavit attached, or contains a statement that the recipient does not live at the address on the letter, then follow the chart below:

    Note:

    If the taxpayer is requesting a copy of their return or the identity theft return, follow the instructions in IRM 21.2.3.5.8, Transcripts and Identity Theft.

    IF AND THEN
    1
    The reply indicates the taxpayer is a victim of identity theft or has a Form 14039 attached.
    No return for the taxpayer is attached to the response.
    • Input return notes in EFDS and update the disposition in EFDS per IRM 25.25.5-1, Triage Procedures.

      Note:

      If the return is in Process Status (PS) 49 (ID Theft Hold) take no action in EFDS.

    • If a TC 971 AC 129 is present, input a TC 972 AC 129 and open a control base to IDRS number "1487311111" in M status, with activity IDT and category MISC.

    • If an unreversed TC 971 AC 121 or AC 124 is present, input a TC 972 AC 121 or AC 124.

    • Input a TC 971 AC 522 if necessary, per IRM 25.23.2.3.7, Marking Taxpayer Accounts When Accepting Identity Theft Claims.

    • Update the address as necessary as indicated by the taxpayer.

    • For returns dispostioned in STARS to "MR" , open a control base using "EVFY" to the identity theft generic IDRS number for the team/site and route the correspondence to the team/site.

    • For returns dispositioned in STARS to "AF" , input EFDS notes, and destroy the correspondence as classified waste, see IRM 21.5.1.4.10, Classified Waste.

      Exception:

      If a Form 14039 with an original signature is present, route the response to the open IVO control. If all controls are closed and the account is resolved, associate the Form 14039, to the account adjustment.

    • For returns dispositioned to "CL" or PU and the account is resolved on IDRS, if a Form 14039 with an original signature is present, associate the Form 14039 to the account adjustment, otherwise destroy the response as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • For returns dispositioned to all other dispositions, if a Form 14039 with an original signature is present, associate the Form 14039 to the DLN of the TC 150 (if a paper DLN) otherwise send the Form to Alpha Files per IRM 3.5.61.21.10, Identity Theft Returns - Alpha Files.

      Exception:

      If the Form 14039 is viewable in AMS images, destroy the form as classified waste.

    • If the account does not contain a posted return (TC 150) on MFT 30 for the tax period in question, if a Form 14039 is viewable in AMS images, destroy the form as classified waste, otherwise send the form to Alpha Files per IRM 3.5.61.21.10, Identity Theft Returns - Alpha Files.

    • If the account contains a return that is UP 147, determine if the return is the valid return for the taxpayer and elevate to the lead for referral or resolution.

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

    • Destroy the notice or letter and any internal documents as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Close the IVO control base for the response.

    2
    The reply indicates the taxpayer is a victim of identity theft or has a Form 14039 attached.
    An original unprocessed return for the taxpayer is attached to the response.
    • Input return notes in EFDS and if necessary, complete the verification process. Push the return to Scheme and update the return disposition to "CAT 5 CL" .

      Note:

      If the return is in PS 49 (ID Theft Hold) take no action in EFDS.

    • If a TC 971 AC 129 is present, input a TC 972 AC 129 and open a control base to IDRS number "1487311111" in M status, with activity "IDT" and category "MISC" .

    • If an unreversed TC 971 AC 121 or AC 124 is present, input a TC 972 AC 121 or AC 124.

    • Input a TC 971 AC 522 if necessary, per IRM 25.23.2.3.7, Marking Taxpayer Accounts When Accepting Identity Theft Claims.

    • Detach the return, all necessary return attachments, (including the Form 14039) and the envelope from the reply and send the return to Submission Processing (SP) for pipeline treatment. See IRM 3.10.73.6(12), Batching Unnumbered Returns and Documents, for procedures to follow when forwarding returns to SP for processing. Ensure to place an IVO stamp in the upper left hand corner, edit with SPC B and edit the return received date.

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

    • Destroy the notice or letter and any internal documents as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Close the IVO control base for the response.

    3
    The reply indicates the recipient on the letter does not live at that address.
     
    • Input return notes in EFDS and if necessary, complete the verification process. Push the return to Scheme.

    • Update the disposition in EFDS per IRM 25.25.5-1, Triage Procedures.

    • Destroy the notice or letter and any internal documents as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

  3. All remaining correspondence to be resolved by IVO will be controlled per IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.

  4. If an open IDRS control base is present on the module to a specific employee (disregard generic control bases), contact the controlling employee prior to resolution to coordinate efforts in order to prevent erroneous or duplicate adjustments or actions. Refer to IDRS - Unit and USR Database, located on the SERP Home Page under the Who/Where tab to locate the employee.

  5. Follow the chart below for resolving Non- identity theft replies:

    IF Then
    1
    A Form W-2 is submitted and the information can be verified per CC IRPTR or the Form W-2 is for an Individual taxpayer identification number (ITIN) return that has a "work assumed" social security number (SSN) and the Form W-2 verifies per Command Code (CC) IRPTR data or Social Security Administration Online Database (SSA _ORS), see IRM 25.25.3, Revenue Protection Verification Procedures for Individual Master File Returns.
    • Input notes as appropriate in EFDS.

    • Update the return disposition in EFDS to "Refile" if necessary, complete the verification process.

    • Release the refund. See IRM 25.25.2.4, Stopping / Releasing the Refund.

    • If the return is in STARS, update the return disposition to "DL" to have it removed from STARS.

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    2
    Other information is provided such as Form 4852, Form 1099, pay stubs, letters from employers which contain the company name, address, employer identification number (EIN), name and SSN/ITIN of employee and is verifiable through research (CC IRPTR) or contact with the employer, and matches the information on the return. See IRM 25.25.3, Revenue Protection Verification Procedures for Individual Master File Returns.
    • Input notes as appropriate in EFDS.

    • Update the return disposition in EFDS to "Refile" if necessary, complete the verification process.

    • Release the refund. See IRM 25.25.2.4, Stopping / Releasing the Refund.

    • If the return is in STARS, update the return disposition to "DL" to have it removed from STARS.

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    3
    The income information provided is not verifiable or the response has no new verifiable information (Letter 4464C or Notice CP 05 responses). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    • If the return is not in STARS push the return to scheme, if necessary, complete the verification process.

    • Input notes in EFDS documenting the information received.

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    4
    The taxpayer states they made an error on the return and has provided the correct information and it is verifiable but there is no corrected/ameded return or a Form 1040X, Amended U.S. Individual Income Tax Return, attached (Letter 4464C or Notice CP 05 responses).
    • If the return is not in STARS push the return to scheme, if necessary, complete the verification process.

    • Input notes in EFDS documenting the information received.

    • Send an 89C letter to the taxpayer requesting a Form 1040X.

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

    • Destroy the notice or letter as classified waste, see IRM 21.5.1.4.10, Classified Waste.

    • Ensure all IVO control bases are closed.

    5
    The taxpayer states they made an error on the return and has provided the correct information and it is verifiable and there is a corrected/amended return or a Form 1040X attached (Letter 4464C or Notice CP 05 responses).

    Note:

    Do not send an unverifiable corrected/amended return or Form 1040X to SP or ICT. Treat as an unverified response.

    • If the return is not in STARS push the return to scheme, if necessary, complete the verification process.

    • Input notes in EFDS documenting the information received.

    • Update the return in STARS to "CAT 5 CL" .

    • If there is no identity theft marker (TC 971 AC 501 or TC 971 AC 506) for any tax period on CC ENMOD, route the amended return or Form 1040X and envelope to the Submission Processing (SP) Batching Function per Exhibit 3.10.72-11, Submission Processing Contacts (Batching Function). Edit the IVO stamp or "IVO REV" in the upper left margin of the return prior to sending to SP. Destroy the IVO letter as classified waste.

    • If there is an identity theft marker (TC 971 AC 501 or TC 971 AC 506) for any tax period, AND the amended return/Form 1040X can be verified within IVO tolerance, fax the amended return or Form 1040-X and envelope to ICT using the RICS IVO AR Adjustment Request Form, and include the verified income/withholding information on the routing form. If the income/withholding is not an exact match but is verified within IVO tolerance, add a statement in the additional information field of the AR Adjustment Request Form that the return was verified within IVO tolerance. Destroy the IVO letter as classified waste.

    • If sending the Form 1040X to SP or ICT and the return is in the STARS, update the disposition to CAT "5" "CL"

    • If there IS an identity theft marker for any tax period AND the amended return/Form 1040X CANNOT be verified within IVO tolerance, refer the entire response to the Automated Questionable Credits Program (AQC) via EEF at 855-848-2102. Do not update the return in STARS.

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

    • Close the IVO control base with an activity field of "1040X2SP" "1040X2AM " or "1040X2AQC" , as appropriate

Undeliverable Correspondence Research
  1. Additional research may be needed to correct incomplete or incorrect addresses on undelivered letters.

  2. If the undelivered mail has a yellow address sticker provided by the U.S. Postal Service (USPS) on the original envelope, compare the yellow label entity to the name and address using the following Command Codes (CC) ENMOD, BMFOLE, or IMFOLE, to verify it is the same taxpayer.

  3. Research Accounts Management Services (AMS) history and images, Remittance Tracking Register (RTR), and IDRS CC’s ENMOD, IMFOLE, INOLE, NAMES/E, RTVUE, TRDBV, and IRPTRL (most current tax period data). Research open IDRS modules for any pending (PN TC 150/TC 976) returns. If found, research for updated address/entity information.

  4. Compare the cycle of the current Masterfile address to see which address is the most current. For example, if the yellow label shows Bob S. Jones, review of CC ENMOD/IMFOLE shows Bob Jones and the address cycle is prior to the address on the yellow label, this indicates this is the same taxpayer with a more current address.

  5. If a more current filed tax return is present on the account, check it for more complete or correct information. (Do not order the return just to check the address).

  6. If you find more complete or correct information, or if you find a more current address, reissue or re-mail the correspondence.

    Note:

    If the letter indicates it was issued to a third party, then you can reissue the letter to a third party only if that party is identified in the Centralized Authorization File (CAF), which maintains data for Authorized Representatives (e.g., Letter 2848, Power of Attorney and Declaration of Representative), and Letter 8821, Tax Information Authorization).

  7. Update the address of record if the address on Masterfile was in error due to IRS procedures.

  8. Do not update the address on Masterfile based on a yellow sticker address provided by the Post Office. Use the address on the yellow label to only reissue the letter after research is conducted and it is determined that the address label is the most current. Include a Form 8822, Change of Address, for the taxpayer when reissuing the correspondence.

  9. If a better address cannot be found or confirmed, destroy the correspondence as classified waste, see IRM 21.5.1.4.10, Classified Waste.

4464C Integrated Automation Technologies (IAT) Letter Tool Rejects

  1. When a return is sent to "Verify" and a Status 47 is showing in Electronic Fraud Detection System (EFDS), a file is created to have the Letter 4464C sent to the taxpayer using the Letter 4464C, Integrated Automation Technologies (IAT) letter tool. After the 10 day suspension period, the process continues and the return moves into "Verify" . Occasionally these letters or related actions cannot be completed. When this happens, the action rejects the return back into EFDS. A report called the "IAT Reject Report " , is run daily to find any returns that were rejected back to EFDS. The reject reason may include:

    • CC FRM77 failure

    • CC TXMODA Unavailable

    • Letter Not Sent

  2. The rejects should be corrected manually by taking the following actions:

    • The CC FRM77 failure is corrected by the input of TC 971 AC 617.

    • If creating a dummy module, issue the letter from the dummy module.

    • Issue the Letter 4464C manually.

    • Contact the initiating screener to have the return dispositioned to "Verify" .

    • Ensure the case is suspended for 10 days prior to verification.

Triage Procedures

Scenario EFDS Disposition Additional Instructions
1
- A freeze is present or will be present due to sending a return for processing - and/or AM IDRS control base on the account such as: DUPF, IDT1, IDT3, XRET, MXEN, IDS1, IDT3, IDS3, IDT6, IDT8, IDT9, IDS9, SCRM and SSA2
CAT 5 CL Screen any additional returns for the same tax year and take the following actions:
  • The return is deemed "Valid" - disposition the return to "Refile" .

  • The return is deemed Identity Theft (IDT) - add the return to Scheme, update Scheme Tracking and Referral System (STARS) to "CAT 5 CL" .

2
Freeze codes E-, F- or -L on Account - (for -L freeze, AMDIS status must be greater than 08)
CAT 5 CL Screen any additional returns for the same tax year and take the following actions:
  • The return is deemed "Valid" - disposition the return to "Refile" .

  • The return is deemed IDT, add the return to Scheme and update STARS to "CAT 5 CL" .

3
Account contains a TC 29X or TC 30X and has been resolved by another function
CAT 5 CL Screen any additional returns for the same tax year and take the following actions:
  • The return is deemed "Valid" - disposition the return to "Refile" .

  • The return is deemed IDT, add the return to Scheme and update STARS to "CAT 5 CL" .

4
Z Freeze on account
CAT 7 ZF for the TC 150
  1. If multiple IDT returns are filed for the same tax year, update all returns to "CAT 7 ZF" .

  2. If the return already has a disposition of ZF, take no action.

5
Single IDT return - Refund held or lost - if lost only one TC 846 for the entire refund or part of the refund - may have a Tax Offset (TC 826/896) (Not a TOP Offset) - good address for the taxpayer has been provided via correspondence, e-4442, OAR, etc.
CAT 7 O1
  1. Prior to updating the return in STARS, reverse any Tax Offsets, see IRM 21.5.8, Credit Transfers.

  2. If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 O1" . Update all other IDT returns to "CAT 7 CL" .

6
Single Deceased IDT return - refund lost or refund held - may have a Tax Offset (TC 826/896) - no TOP Offset - no multiple TC 846’s - no good address for the taxpayer
CAT 7 SB
  1. Prior to updating the return in STARS, reverse any Credit Offsets, see IRM 21.5.8, Credit Transfers.

  2. If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 SB" . Update all other IDT returns to "CAT 7 CL" .

7
Single IDT return - No Lost Refund - full refund credit holding on the module - no good address for the taxpayer
CAT 7 S1 If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 S1" . Update all other IDT returns to "CAT 7 CL"
8
Single IDT return - one TC 846 for the entire refund or part of the refund - may have a Tax Offset (TC 826/896) (Not a TOP Offset) - no good address for the taxpayer
CAT 7 S2
  1. Prior to updating the return in STARS, reverse any Credit Offsets, see IRM 21.5.8, Credit Transfers.

  2. If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 S2" . Update all other IDT returns to "CAT 7 CL" .

9
Single IDT return - multiple TC 846s for the entire refund or part of the refund - may have a TOP Offset for all or part of the refund
CAT 7 MR If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 MR" . Update all other IDT returns to "CAT 7 CL" .
10
IDT /Good and Open Control to IVO, (Ex. NCAT, ECAT) (IDT return is TC 150) - no - A freeze present on module (Do not use this disposition when sending the taxpayer’s good return to processing - use "CAT 5 CL" .)
CAT 7 BG
  1. If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 BG" . Update all other IDT returns to "CAT 7 CL" .

  2. Disposition the good return to "Refile" .

11
IDRS has an open control to 1487777777 and all returns are deemed IDT
CAT 7 AF
  1. If multiple IDT returns are filed for the same tax year, only update the TC 150 to "CAT 7 AF" . Update all other IDT returns to "CAT 7 CL" .

Note:

If there is a closed control to 148777777 and the account has been resolved, disposition all IDT returns for the same tax year to "CAT 7 CL" .

12
IDT and previously resolved by IVO
CAT 7 CL
  1. If multiple IDT returns are filed for the same tax year, update all IDT returns to "CAT 7 CL" .

  2. Disposition the good return to "Refile" .

13
Unpostable (UP) 147 Reason Code (RC) 6, 7 or 8 and the return is deemed IDT
CAT 7 PU Screen any additional returns for the same tax year and take the following actions:
  • The return is deemed "Valid" - disposition the return to "Refile" .

  • The return is deemed IDT, add the return to Scheme and update STARS to "CAT 7 PU" .

14
Good/IDT and either Credit Balance, Zero Balance, or Balance Due (Do not use this disposition when sending the taxpayer’s good return to processing or there is a - A freeze on the module - use "CAT 5 CL" .)
CAT 7 GB
  • Disposition the "Good" return to "Refile" .

  • Disposition the IDT return to "CAT 7 GB" .

  • If multiple IDT returns are filed for the same tax year, update all IDT returns "CAT 7 CL" .

Transaction Code (TC) 971 Action Code (AC) 199 Miscellaneous (MISC) Field Literals for IVO

Transaction code (TC) 971 action code (AC) 199 is used by several organizations within IRS to identify specific activity on an account. IVO uses the TC 971 AC 199 to place a hard freeze on a module when the return has been deemed questionable or false. The TC 971 AC 199 may have a literal in the Miscellaneous (MISC) field indicating the inventory type for proper case referral and resolution.

MISC field literal Definition
1
"AMWEX60033 OMMEFDS"
Return was previously determined to meet OMM criteria.
2
"AMWEX60033 REFEFDS"
Return has been determined to be fraud.
3
"AMWEX60033 GATT EFDS"
TP has been identified as a "full year" prisoner and the return is claiming refundable credits that the TP may not be qualified for.
4
"AMWEX60033JDDB73EFDS"
Return is being reviewed by IVO and additional time is needed to complete the review.