25.25.13 Account Resolution for Return Integrity Verification Operations (RIVO)

Manual Transmittal

September 24, 2020

Purpose

(1) This transmits revised IRM 25.25.13 Account Resolution for Return Integrity Verification Operations (RIVO)

Material Changes

(1) IRM 25.25.13.3(3) - Updated procedures to clarify resolving accounts that failed systemic referral. IPU 20U0507 issued 04-13-2020.

(2) IRM 25.25.13.3(3) - Added a Note to identify work designated for the External Lead team. IPU 20U0670 issued 06-03-2020.

(3) IRM 25.25.13.3.1 - Added procedures to clarify resolving non-identity theft accounts treated as IDT. IPU 20U0507 issued 04-13-2020.

(4) IRM 25.25.4.3 - Added an opening paragraph to explain why non-verifiable accounts are assigned to the designated team. IPU 20U0507 issued 04-13-2020.

(5) IRM 25.25.4.3(Block 7) - Added guidance for responding to an E-4442 when a return is in a verification status. Effective 10-01-2020IPU 20U0507 issued 04-13-2020 IRM 25.25.13.1.6 Corrected the name of the department

(6) IRM 25.25.13.5 - Updates were made throughout this subsection to correct changes in procedures, and added an If Then table to guide TEs through the manual referral process. Also paragraphs were rearrange for a better flow when working cases. IPU 20U0507 issued 04-13-2020. RM 25.25.13.3 Corrected the name of the organization, added an IRM reference, and clarified procedures

(7) IRM 25.25.13.5(3) & (6) - Clarified procedures to follow when an OAR is received. IPU 20U0565 issued 04-29-2020.

(8) IRM 25.25.13.5(6) - Corrected previous guidance provided in IPU 20U0565 regarding OARS. IPU 20U0616 issued 05-13-2020.

(9) IRM 25.25.13.9(4) - Added the option for anyone to use STARS Disposition Status Code WL for releasing a refund in STARS. IPU 20U0731 issued 06-23-2020.

(10) IRM 25.25.13.9(4) - Corrected IPU 20U0731, to restrict who can update to STARS Disposition Status Code WL. IPU 20U0769 issued 07-09-2020.

(11) IRM 25.25.13.10(3) - Updates made to correct changes in procedures per SERP feedback. IPU 20U0507 issued 04-13-2020.

(12) IRM 25.25.13-2 - Corrected the order in which TEs transfer credits and move them to excess credit. IPU 20U0507 issued 04-13-2020.

(13) IRM 25.25.13-3 - Added an Exhibit which provides STARS Disposition Definitions for TEs to quickly reference. IPU 20U0507 issued 04-13-2020.

(14) IRM 25.25.13-3 - Updated the Disposition Usage table to remove the restriction for who could use WL IPU 20U0731 issued 06-23-2020.

(15) IIRM 25.25.13-3 - Corrected IPU 20U0731, to restrict Disposition Usage to a designated function and point of contacts. IPU 20U0769 issued 07-09-2020.

(16) IRM 25.25.13-4 - Added a STARS Category Defintion chart for TEs to quickly reference. IPU 20U0507 issued 04-13-2020.

(17) Editorial changes were made throughout the IRM section to include the following:

  • Changing name of organization and section titles

  • Changing the point of contact for routing statute cases

  • Correcting and adding references

  • Spelling acronyms

  • Updating the organizational name listed for the Director

  • Replaced in IRM 25.25.13-3, the disposition codes E1-E4 with E5-E8 since it was easier to create new ones for updates in mass.

Effect on Other Documents

IRM 25.25.13 dated September 23, 2019 (effective October 1, 2019) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - IPU 20U0507 issued 04-13-2020, IPU 20U0565 issued 04-29-2020, IPU 20U0616 issued 05-13-2020, IPU 20U0670 issued 06-03-2020, IPU 20U0731 issued 06-23-2020, IPU 20U0769 issued 07-09-2020 and the update with the effective date 10-01-2020.

Audience

Campus employees in Return Integrity Verification Operations

Effective Date

(10-01-2020)

Denise D. Davis
Director, Return Integrity Verification Program Management (RIVPM)
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 reviewing individual master file (IMF) or business master file (BMF) returns for possible identity theft and false income and withholding. These returns are scored through the Dependent Database (DDb) or through the Return Review Program (RRP) system. These returns may not be able to be worked through systemic processes and will require manual resolution.

  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 RIVO, and organization that collaborate with RIVO.

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

  7. This section provides guidance for resolving accounts with RIVO involvement.

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

    • Protecting taxpayer’s rights while protecting revenue

Program Management and Review

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

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

    • IRM 1.2.1.5.10, Policy Statement 4-21, Selection of returns for examination

    • IRM 1.1.13.5, Return Integrity & Compliance Services (RICS).

    • 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 & Compliance Services (RICS).

Acronyms

  1. For a list of Acronyms used throughout Return Integrity Verification Operations (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

    • IRM 4, Examining Process

  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:

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

  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, see The IRS outlines the Taxpayer Bill of Rights.

Account Resolution Overview

  1. This Internal Revenue Manual (IRM) provides the procedures for the Return Integrity Verification Operations (RIVO) function to make general adjustments through the Integrated Data Retrieval System (IDRS) to any one of the different Master File Tax Codes (MFTs). These procedures are available for use when an account adjustment must be made and there are no procedure(s) that cover the process in a specific IRM.

  2. Adjustments may need to be made to accounts where the process has stopped or failed and the return has not been treated or completed. General adjustments are changes made on Individual Master File (IMF) and Business Master File (BMF) accounts. Adjustments may be required because of various work streams or referral processes such as:

    • Wage and Withholding Only (WOW) - accounts involving only wages and withholding (no refundable credits)

    • Automated Questionable Credits (AQC) - accounts with refundable credits requiring statutory notice of deficiency processing that protects the taxpayer’s right to petition tax court

    • Taxpayer Protection Program (TPP) - Identity authentication process

    • Frivolous Return Program (FRP) - Frivolous filings

    • Statute Imminent or Statute Expired with or without credits

    • Internal Transcripts

    • Taxpayer Correspondence

    • Form 4442, Inquiry Referral

    • Operational Assistance Requests (OARs)

    • Electronic Fraud Detection System (EFDS) and Scheme Tracking and Referral System (STARS)

Account Resolution Research

  1. Research the account to identify the point where the process stopped or failed:

    • Research IDRS for relevant Return Integrity Verification Operations (RIVO) markers, transactions, letters issued and freeze conditions

    • Research the Electronic Fraud Detection System (EFDS) and or the Scheme Tracking and Referral System (STARS) notes and statuses

    • Research Account Management Services (AMS) notes for taxpayer contact or other relevant information

  2. Determine if the credit being held is from an identity theft return:
    If identity theft is determined, follow normal identity theft procedures per IRM 25.25.4, Return Integrity Verification Operations Identity Theft Return Procedures.
    If non identity theft continue below:

  3. Once the process that failed/stopped has been identified, follow the table below to resolve the account.

    Note:

    If the credit was not stopped by RIVO, DO NOT Work the account, refer the account to the area that held the credit. Ensure all RIVO markers are reversed, as appropriate, and any RIVO controls are closed. Update AMS notes as appropriate.

    Reminder:

    There may be instances when an account has previous action by Error Resolution or Accounts Management and the refund is being held with a -K freeze. RIVO is responsible to resolve the account for the RIVO issues which may include releasing the refund.

    Note:

    If you are not trained in the work stream process (i.e. AQC/WOW/Exam), refer the case per IRM 25.25.13.5, Manual Referrals.

    If And Then
    1
    Transaction code (TC) 971 action code (AC) 122, AC 140 or AC 128 with specific MISC field
    the refund is still held refer/work per AQC process, IRM 25.25.7, Automated Questionable Credit Program
    2
    The refund has been held by RIVO (CP 05A may have been issued to the taxpayer)
    there are no refundable credits refer/work per WOW process, IRM 25.25.11, Wage and Withholding Only (WOW) (Notice CP 05A) Procedures
    3
    The refund has been held by RIVO (CP 05A may have been issued to the taxpayer)
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ refer/work per AQC process, IRM 25.25.7, Automated Questionable Credit Program
    4
    The refund has been held by RIVO (CP 05A may have been issued to the taxpayer)
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ refer to Exam per IRM 25.25.13.5, Manual Referrals
    5
    The refund has been held by RIVO (CP 05A may have been issued to the taxpayer)
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ refer/work per AQC process, IRM 25.25.7, Automated Questionable Credit Program
    6
    TC 720 posted to the account
    the refund is still held determine appropriate work stream and follow appropriate block above
    7
    TC 841 posted to the account
    the refund is still held determine appropriate work stream and follow appropriate block above

    Note:

    If the account contains in the Document Locator Number (DLN) Blocking Series 77711, 77712, 77713 or 77714, close your control base as those will be worked by External Lead.

    8
    Unreversed TC 971 AC 121, 124, 129 or a return is unpostable (UP) 126 reason code (RC) "0"
    the refund is still held follow Taxpayer Protection Program (TPP) process, IRM 25.25.6, Taxpayer Protection Program
    9
    Return is on MFT 32
    it’s the taxpayer’s valid return follow MFT 32 reversal procedures, IRM 25.25.6.7.1, MFT 32 Reversal Procedures
    10
    Return is archived or deleted
    RIVO archived or deleted the return follow IRM 25.25.6.8, Archived - Deleted Return Reprocessing Procedures
    11
    STARS indication of selection to a RIVO process with indicators such as TC 971 AC 052
    the refund is held with a TC 971 134, TC 971 AC 199 or computer condition code (CCC) "1" or CCC "3" and return does not verify per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR determine appropriate work stream and follow appropriate block above
    12
    STARS indication of selection to a RIVO process with indicators such as TC 971 AC 052
    the refund is held with a TC 971 134, TC 971 AC 199 or CCC "1" or CCC "3" and return does verify per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR release the refund
    13
    BMF
    the refund is held by an RIVO hold follow BMF procedures, IRM 25.25.1, Return Integrity and Verification Operation Business Master File Procedures
    14
    There is a -A freeze
    there is no control to RIVO return/reject to Accounts Management (AM)
    15
    There is a -A freeze
    there is a RIVO control to 1487777777 work per IRM 25.25.13.4.3, Resolving Accounts Assigned To 1487777777
    16
    The return contains Schedule C or Household Help (HSH) income
    work per IRM 25.25.2.19, Process Status (PS) 30 Identity Theft False Positive Screening Procedures, box 2 and 3 as appropriate

Previously Identified as Identity Theft

  1. Account research shows the account is not identity theft (IDT), but was treated as IDT, then re-instate the return following normal adjustment procedures using the xClaim Tool. After reinstatement, follow the chart below to resolve the account or refer the return to the appropriate workstream.

    Note:

    If the ASED is expired follow IRM 25.25.13.7, Barred Assessments.

    If Then
    1
    The return verifies per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR.
    • Release the refund, follow IRM 25.25.13.9, Releasing the Refund

    • Input notes in the Electronic Fraud Detection System (EFDS) documenting the information received.

    • Update the disposition to "DL" to have the return removed from the Scheme Tracking and Referral System (STARS).

    • Input a note in STARS explaining the reason for the scheme deletion request per Exhibit 25.25.13-1, STARS Delete Reasons.

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

    • Ensure all Return Integrity Verification Operations (RIVO) control bases are closed.

    2
    The return doesn’t verify per IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR.
    • Refer to the appropriate work stream as identified in IRM 25.25.13.3, Account Resolution Research.

    • Input notes in EFDS documenting the information received.

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

Resolving Accounts Assigned To 14877XXXXXX

  1. Other functions assign cases to Return Integrity Verification Operations (RIVO) for resolution.

    • The account is assigned to 1487755555, see IRM 25.25.13.4.1, Resolving Accounts Assigned To 1487755555.

    • The account is assigned to 1487766666, see IRM 25.25.13.4.2, Resolving Accounts Assigned To 1487766666.

    • The account is assigned to 1487777777, see IRM 25.25.13.4.3, Resolving Accounts Assigned To 1487777777.

Resolving Accounts Assigned To 1487755555

  1. This inventory is being reassigned to Return Integrity Verification Operations (RIVO) by statute because RIVO removed the return data and new information shows the return to be filed by the taxpayer identification number (TIN) owner. Cases assigned to this queue should have more than 120 days remaining on the assessment statute expiration date (ASED).

  2. Confirm that the original return was filed by the TIN owner.

  3. Determine how many days remain on the ASED. If there are less than 90 days remaining on the ASED follow prompt assessment procedures. See IRM 25.25.13.6, Prompt Assessments. If there are more than 90 days remaining on the ASED input the adjustment to correct the account back to the original return data.

Resolving Accounts Assigned To 1487766666

  1. This inventory is being reassigned to Return Integrity Verification Operations (RIVO) by statute because RIVO removed the return data and new information shows the return to be filed by the taxpayer identification number (TIN) owner. Cases assigned to this queue should have less than 120 days remaining on the assessment statute expiration date (ASED) or the ASED has expired.

  2. Confirm that the original return was filed by the TIN owner.

  3. If the ASED has not expired, but has 90 days or less remaining, follow IRM 25.25.13.6, Prompt Assessments.

  4. If there are more than 90 days remaining on the ASED input the adjustment to correct the account back to the original return data.

  5. If the ASED has expired, follow IRM 25.25.13.7, Barred Assessments.

Resolving Accounts Assigned To 1487777777

  1. This process was developed to address accounts where multiple returns were filed and the returns are not verifiable per IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR, and the account contains prior Return Integrity Verification Operations (RIVO) involvement.

  2. The IRM 25.23.4.8.1, Identity Theft (IDT) with IVO Involvement, specifically states that the year involved with the case must have prior RIVO involvement. If there is no prior RIVO involvement, the case should be rejected back to the originator.

    If And Then
    1
    The transaction code (TC) 976 income and withholding is verifiable per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR, or the income is from Schedule C or Household Help (HSH).

    Exception:

    If the TC 150 was reversed and it is determined that it was backed out in error, see box 5 or 6 below.

    • Reject the case back to the originator.

    • Re-control the open control base to the originator with "REJECT2AM" in the activity field.

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

    • Update the Scheme Tracking and Referral System (STARS) Category to "5" Disposition "CL" .

    2
    The TC 976 income and withholding is not verifiable per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR.
    the TC 976 return is a true duplicate of the TC 150.
    • Research the account to determine why the TC 150 did not go through appropriate treatment stream.

    • Input a TC 290 for .00 with a hold code 4 to remove the -A freeze. Work/refer to the appropriate treatment stream per IRM 25.25.13.3, Account Resolution Research

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

    3
    The TC 976 income and withholding is not verifiable per IRM 25.25.3.4, Income Verification using Command Code (CC) IRPTR.
    the TC 976 return is not a true duplicate of the TC 150 and either return was filed by the taxpayer identification number (TIN) owner.
    • Reject the case back to the originator.

    • Re-control the open control base to the originator with "REJECT2AM" in the activity field.

    • Input/Update AMS notes include which return RIVO deemed IDT and which return was filed by the TIN owner, per IRM 21.2.2.4.5, Account Management Services (AMS).

    • Update STARS Category for returns in STARS to "5" Disposition "CL" .

    4
    The TC 976 income and withholding is not verifiable per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR.
    the TC 976 return is not a true duplicate of the TC 150 and neither return was filed by the TIN owner.
    • Update the control base activity to "IDTHEFT" and the category to "NCAT" .

    • Resolve the account per IRM 25.25.4, Integrity & Verification Identity Theft Return Procedures.

    5
    The TC 150 income and withholding is verifiable per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR, but was backed out in error.
    the taxpayer’s original information must be restored and the ASED is not expired.
    • There are more than 90 left on the ASED, restore the taxpayer’s account to the original return data and release the refund as appropriate.

    • If the ASED is not expired, but has 90 days or less remaining, follow IRM 25.25.13.6, Prompt Assessments.

    6
    The TC 150 income and withholding is verifiable per IRM 25.25.3.4 , Income Verification using Command Code (CC) IRPTR, but was backed out in error.
    the taxpayer’s original information must be restored and the ASED is expired. Follow procedures in IRM 25.25.13.7, Barred Assessments.
    7
    RIVO receives an E-4442
    The IDOC is in a Verification status, prior to IRP being fully loaded Follow guidance in IRM 25.25.13.3.10(12)

Manual Referrals

  1. A Manual Referral is an unverifiable return that cannot be referred systemically through the Scheme Tracking and Referral System (STARS). Manual referrals may not have all Return Integrity Verification Operations (RIVO) markers, as the account was stopped somewhere in the process.

  2. Manual referrals, once identified, should be referred to the appropriate work stream based on the table in IRM 25.25.13.3, Account Resolution Research.

  3. General Rules to follow before referring:

    Note:

    DO not resubmit returns you have previously submitted with in the last 60 days.

    • Do not refer returns that have a previous adjustment on the account.

    • Do not refer any return that already has a -L freeze on command code (CC) TXMODA, or CC AMDISA is showing an Exam Audit is open.

    • Do not refer any returns with -A freezes. Follow IRM 25.25.13.4, Account Resolution Research

    • Do not refer through the manual process if you have zeroed out the return.

    • Do not refer return if it is true identity theft. These must be worked by Tax Examiners.

    • Do not refer any return that can be sent systemically through the Electronic Fraud Detection System (EFDS)/STARS

    • Do not refer any return that is disposition in STARS to AA (Accepted by AM) or AE (Accepted by Exam)

    • If the return is in Disposition identity theft (process status (PS) 49) you can still refer the return as long as the return being referred is the true taxpayer’s return and is the TC 150.

    • All returns for all spreadsheets should be pushed into STARS. See exception for General Agreement on Tariff and Trades (GATT) returns.

    • All return dispositions in EFDS/STARS will be updated by the point of contact (POC) once the referral is accepted and should be in E3 for WI Exam, E4 for Small Business Self Employed (SBSE) Exam, E1 for Wage and Withholding Only (WOW), or E2 for Automated Questionable Credits (AQC).

    • Reverse any offsets on the account. Follow IRM 21.4.6.2, What Is a Refund Offset?, for offset types and restrictions.

    • All income documents in EFDS must be verified and contain notes in EFDS.

    • You must ensure all refunds have been stopped.

    • The TC 150 must be posted to CC TXMODA before sending the return through the manual referral process.

  4. If the return originated in the Taxpayer Protection Program (TPP), ensure the TC 971 AC 052 with MISC "RRPNONIDT" is present. If not present, release the refund, do not work or refer within RIVO (AQC/WOW/EXAM).

  5. For accounts that did not originate in TPP, a TC 971 AC 052 is not required to continue with RIVO processes, determine the reason for the refund hold and ensure the return is referred to the appropriate work stream.

  6. When manually referring accounts to the appropriate work stream, complete the manual referral spreadsheet found on the SharePoint site. Ensure the spreadsheet is completed.

    • Open a control base in B status when the manual referral spreadsheet is completed. Use the chart below to determine the appropriate activity code to use:

      Exception:

      Do NOT open a new control base on OAR referrals to WOW and AQC. Please leave open the existing OAR control and follow procedures on # 3

      IF THEN
      WOW Man2WOW
      AQC Man2AQC
      EXAM Man2EXAM

    • Every field must be filled out. There should be NO BLANKS. All Yes and No answers must show as "YES" or "NO" .

      Exception:

      Column header "Exam Comments" , "To be filled out by receiver" , and "Date Sent" , should be left blank.

    • Fill out the column that says Site with your Site’s name.

    • Input the tax period in the following format: "20XX12" . It must have all six digits.

    • Taxpayer identification numbers (TINs) must include hyphens

    • Do not alter the columns or tabs on the spreadsheet. For example, if you only have submissions for SBSE, do not delete the other tabs.

    • Enter a note into EFDS, the manual referral spreadsheet and tab completed. For example," AQC - MISC, AQC tab"

    • Send the original spreadsheet to the POC, using the most current revision.

  7. Follow the table below for Manual Referral criteria:

    If Then
    WOW (non-statute return) – prior year processing year with false or inflated withholding (no refundable credits)
    • Input the information on the WOW spreadsheet on the “WOW” tab

    • If the case is an Operations Assistance Request (OAR), refer the return to your Taxpayer Advocate Service (TAS) liaison for a TAS referral.

    WOW Statute Returns – prior year processing returns with false or inflated withholding (no refundable credits) and the Assessment Statute Expiration Date (ASED) is within one year and one month or less from expiring or has already expired
    • Input the information on the WOW spreadsheet on the “WOW STATUTE” tab

    • If the return is an OAR, refer the return to your TAS liaison for a TAS referral.

    AQC-GATT – Wages and withholding will always be verified. The return must claim Earned Income Tax Credit (EITC) or Making Work Pay Credit (MWP) or Recovery Rebate Credit (RRC) or Additional Child Tax Credit (ACTC) claiming two or more children
    • Input the information on the "AQC - GATT" spreadsheet on the AQC tab

    • If the case is an Operations Assistance Request (OAR), refer the return to your Taxpayer Advocate Service (TAS) liaison for a TAS referral.

    AQC - MISC - Add to this tab any returns with false or inflated wages/withholding with refundable credits (i.e. Earned Income Tax Credit(EITC), American Opportunity Tax Credit(AOTC), Making Work Pay Credit (MWP), Affordable Care Tax Credit(ACTC) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the case does not meet Exam criteria and will need to be added to this sheet to go to AQC.
    • Input the information on the "AQC - MISC" spreadsheet on the AQC tab

    • If the case is an OAR, refer the return to your TAS liaison for a TAS referral.

    AQC Statue Returns with Credits - Add to this tab all returns with refundable credits where the statute date has expired or is within one year and one month of expiring. It does not matter if the return would normally go on the EXAM spreadsheet. This tab is for all statute returns or returns with only one year and one month or less left on Assessment Statue Expiration Date (ASED) with refundable credits.
    • Input the information on the "AQC STATUE RTNS WITH CREDIT" spreadsheet on the AQC tab

    • If the case is an OAR, refer the return to your TAS liaison for a TAS referral.

    WI Exam with TC 971 Action Code (AC) 501, 506, 522 - Add to this tab prior year returns containing wages/withholding,(the return may have Household Help (HSH). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and CC ENMOD has a TC 971 AC 501, 506, or 522

    Note:

    If the return contains Schedule C income, see SBSE Exam instructions below.

    • Input the information on the "501 506 522 WI EXAM" spreadsheet on the Exam tab

    • If the return contains HSH income, indicate in the comments section that there is HSH and the amount.

    • If referring an OAR to Exam, keep the OAR control base open until the -L freeze posts to CC TXMODA. This process may take up to four weeks from the time the referral is sent to the POC, so request an extension if needed. Four weeks should cover the time from when the referral is made to when the case appears on CC AMDISA.

    WI Exam - Add to this tab prior year returns which have wages/withholding, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ CANNOT have a Schedule C. The case may have HSH.
    • Input the information on the "WI EXAM" spreadsheet on the Exam tab

    • If the return contains HSH income, indicate in the comments section that there is HSH and the amount.

    • If referring an OAR to Exam, keep the OAR control base open until the -L freeze posts to CC TXMODA. This process may take up to four weeks from the time the referral is sent to the POC, so request an extension if needed. Four weeks should cover the time from when the referral is made to when the case appears on CC AMDISA.

    SBSE Exam - Add to this tab returns with Schedule C, Schedule E, or Schedule F, or Form 2106. Must also have wages/withholding that do not verify and credits claimed. May also have HSH income.

    Note:

    A Schedule C loss greater than $25,000 can be referred to SBSE Exam even when wages and withholding verify.

    • Input the information on the "SBSE EXAM" spreadsheet on the Exam tab

    • If return has both Schedule C and HSH, notate in the comments column that there is both Schedule C and HSH. These must meet Exam ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. These returns must also have wages and or withholding that do not verify.

    • If referring an OAR to Exam, keep the OAR control base open until the -L freeze posts to CC TXMODA. This process may take up to four weeks from the time the referral is sent to the POC, so request an extension if needed. Four weeks should cover the time from when the referral is made to when the case appears on CC AMDISA.

Prompt Assessments

  1. What is a Prompt Assessment?

    A Prompt Assessment is required when the taxpayer identification number (TIN) owners’ return, with a tax greater than zero, was removed (zeroed out) or was not assessed and the Assessment Statute Expiration Date (ASED) is within 90 days of expiring.

    If Then
    the TIN owners return was backed out and needs to be re-instated.
    • Adjust the account with a transaction code (TC) 290 for .00 and:

      Caution:

      Ensure the TC 290 amount is ALWAYS .00 when 90 days or less are remaining on the ASED.


      Include item/credit reference numbers to reflect the correct amount of exemptions, adjusted gross income (AGI), taxable income (TXI), self-employment tax (SET), etc.
      Adjust credits, such as Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) etc.
      Use a Hold Code 4 to prevent a notice and refund from generating and input a priority code 8.

    • Complete Form 2859, Request for Quick or Prompt Assessment.

    • Input TC 971 action code (AC) 506 "WI PRP OTHER1" and reverse any prior TC 971 AC 506. If TC 971 AC 505 is present and there is a good address reverse and replace with "WI AM OTHER" .

    • Assemble the Assessment package. See the RIVO portal for detailed instructions.

    • Route the package to accounting function.

    • Monitor the account for the adjustment to post.

      Caution:

      If the adjustment does not post before the ASED expires, there could be a barred assessment.

    • Once all actions are posted close all RIVO controls.

Barred Assessments

  1. What is a Barred Assessment?

    A Barred Assessment occurs when the taxpayer identification number (TIN) owners return with a tax greater than zero was removed (zeroed out) or was not assessed and the Assessment Statute Expiration Date (ASED) has expired. Follow the table below to correct the account:

    If Then
    1
    For barred assessments of ≡ ≡ ≡ ≡ ≡ or more.
    • Adjust the account with a transaction code (TC) 290 for .00 and:
      Include item/credit reference numbers to reflect the correct amount of exemptions, adjusted gross income (AGI), taxable income (TXI), self-employment tax (SET), etc.
      Adjust credits, such as Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) etc.
      Use a Hold Code 4 to prevent a notice and refund from generating and input a priority code 8.

    • Issue a manual refund to the taxpayer, including applicable interest, for the amount of overpayment (refund) that the taxpayer is entitled to. See IRM 21.4.4.2, What Is a Manual Refund?.

    • Prepare Form 9355, The Barred Statute Report, per IRM 25.25.13.7.1, Form 9355, The Barred Statute Report.

    • Prepare a Form 8758, Excess Collection File Addition, to move any remaining credit (generally the amount of the tax that cannot be assessed) to Excess (6800 Account). See IRM 3.17.220.2.2.1, Preparation of Form 8758.

    • Input TC 971 action code (AC) 296.

    • Open a monitoring control, "M" status, with activity "ADJ2POST" , and category "MISC" . Once the adjustment posts update the control to "F8758MMDD" where "MMDD" is 6 weeks from the adjustment date for suspense to track the Form 8758 submission to Excess Collection.

    • If the return is in the Scheme Tracking and Referral System (STARS), update the disposition to "DL" to have the return deleted from STARS. Add STARS note: "Account backed out as IDT in error. Adjustment reversed. Barred assessment" .

    • Input/Update AMS notes per IRM 21.2.2.4.5, Account Management Services (AMS): "Account backed out as IDT in error. Adjustment reversed. Barred assessment" .

    • Prepare the Statute and Accounting packets

      Note:

      See Barred Assessment Guide on the RIVO Portal for more detailed information.

      .

    • Monitor the account for all actions to be completed.

    • Close all RIVO control bases after all account actions are complete.

    2
    For barred assessments of less than ≡ ≡ ≡ ≡ ≡.
    • Input a TC 971 AC 090 on command code (CC) TXMODA to identify the under tolerance erroneous abatement. Enter "R" when the cross reference TIN is the same as the account TIN.

    • Adjust the account with a TC 290 for .00 and:
      Include item/credit reference numbers to reflect the correct amount of exemptions, AGI, TXI, SET, etc.
      Adjust credits, such as EITC or ACTC etc.
      Use a Hold Code 4 to prevent a notice and refund from generating and input a priority code 8.

    • Issue a manual refund to the taxpayer, including applicable interest, for the amount of overpayment (refund) that the taxpayer is entitled to. See IRM 21.4.4.2, What Is a Manual Refund?

    • Prepare a Form 8758, Excess Collection File Addition, to move any remaining credit (generally the amount of the tax that cannot be assessed) to Excess (6800 Account). See IRM 3.17.220.2.2.1, Preparation of Form 8758.

    • Open a monitoring control in "M" status, with activity "ADJ2POST" , and category "MISC" . Once the adjustment posts update the control to "F8758MMDD" where "MMDD" is 6 weeks from the adjustment date for suspense to track the Form 8758 submission to Excess Collection.

    • If the return is in STARS, update the disposition to "DL" to have the return deleted from STARS. Add STARS note: "TC 150 was good TP’s return, treated as bad in error."

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

    • Monitor the account for the posting of the Excess transaction.

    • Close all RIVO control bases after all account actions are completed.

Form 9355, The Barred Statute Report

  1. The Form 9355, Barred Statute Report, is prepared and assembled by the organization responsible for the loss of the assessment or the function /organization responsible for the lack of appropriate action, that allowed the tax assessment period to expire without a valid tax assessment being made.

  2. The area responsible for the barred assessment will prepare the Form 9355, as appropriate, for their function, and forward to the Accounts Management (AM) Statute Function.

  3. Prior to forwarding the Form 9355 to the AM Statute Function, Return Integrity Verification Operations (RIVO) Management will take the following actions:

    1. RIVO creates a PDF on the shared drive in the "Form 9355 Package" folder for the case using the last 4 digits of the taxpayer identification number (TIN) and the first 4 letters of the last name.

      Exception:

      When a package is delivered from Statute for signature route to the RIVO Statue Coordinator.

    2. RIVO will prepare the Form 9355 .

    3. RIVO will download or scan any supporting documents (including command code (CC) TXMODA after all transactions post and the account is in zero balance. The account MUST be at a zero balance.

    4. When the case file is complete, send to the RIVO Statue Coordinator for review.

    5. When the case file is complete, RIVO Statue Coordinator will move the case file to the "Ready for Manager" folder and then notify the manager via email to sign the Form 9355. .

    6. The manager will sign the Form 9355 and move the case to the "Ready for Department Manager" folder and then notify the Department Manager via email to sign the Form 9355.

    7. The Department Manager will sign the Form 9355 and move the case file to the "Ready for Operation Manager" signature folder and notify the Operation Manager via email to sign the Form 9355.

    8. The Operation Manager will sign the Form 9355 and move the case file to the "Ready for RIVO Policy and Analysis (P&A) Staff Review" folder and then notify RIVO P&A staff via e-mail that the package is ready for review and the Director’s signature.

    9. RIVO P&A staff will review the package for completeness and move the case file to the "Ready for Director" signature folder and notify the Director via e-mail that the Form 9355 package is ready for signature.

    10. Once the Director signs the Form 9355, RIVO P&A staff will move the case file into the "Routing to Statute" folder and will notify RIVO Statue Coordinator the package is ready for routing to Statute.

    11. RIVO will print the entire package and route to Statute. RIVO will move the case file to the applicable"Completed FY 20XX" folder.

Erroneous Abatement Procedures for Return Integrity Verification Operations (RIVO)

  1. There may be instances when the taxpayer’s return data has been removed from the tax account due to a clerical error and needs to be reinstated. A clerical error occurs when multiple returns are filed and the taxpayer’s valid return data is removed from the account in a batch process, however the assessment statute is barred. Most of the accounts will be handled as Barred Assessments See IRM 25.25.13.7, Barred Assessments.

    Example:

    The batch tool backed out the valid return data due to the identity theft (IDT) document locator number (DLN) in the Scheme Tracking and Referral System (STARS) being a different DLN than the transaction code (TC) 150, resulting in the good return being backed out.

    See IRM 25.6.1.10.2, Erroneous Abatement, and follow the chart below to resolve the account:

    Caution:

    Before working any account as a clerical error, see your lead to ensure it meets clerical error criteria.

    If Then
    1
    For erroneous tax abatements of any amount where the Assessment Statute Expiration Date (ASED) has not expired.
    Adjust the account back to the original return data and release the refund as appropriate.
    2
    For erroneous tax abatements over ≡ ≡ ≡ ≡ and the ASED has expired.
    • Adjust the account with a TC 290 for .00 and:
      Include item/credit reference numbers to reflect the correct amount of exemptions, adjusted gross income (AGI), taxable income (TXI), self-employment tax (SET), etc.
      Adjust credits, such as Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) etc.
      Use a Hold Code 4 to prevent a notice and refund from generating and input a priority code 8.

    • Issue a manual refund to the taxpayer, including applicable interest, for the amount of overpayment (refund) that the taxpayer is entitled to. See IRM 21.4.4.2, What Is a Manual Refund?

    • Prepare a Form 8758, Excess Collection File Addition, to move any remaining credit (generally the amount of the tax that cannot be assessed) to Excess (6800 Account). See IRM 3.17.220.2.2.1, Preparation of Form 8758.

    • Open a monitoring control, with activity "87582EXCES" , and category "MISC" , to track the Form 8758 submission to Excess Collection.

    Follow IRM 25.6.1.10.2.2.3, Correction of Erroneous Abatement Cases by the Originating Function.
    • If the return is in STARS, update the disposition to "DL" to have the return deleted from STARS. Add STARS note: "TC 150 return was good TP’s return, IDT batch tool backed out the incorrect DLN, issue meets clerical error criteria."

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

    • Monitor the account for the posting of the Excess transaction.

    • Close all RIVO control bases after all actions are completed.

    3
    For erroneous tax abatement of ≡ ≡ ≡ or less and the ASED has expired.
    • Input a TC 971 action code (AC) 090 on command code (CC) TXMODA to identify the under tolerance erroneous abatement.

    • Adjust the account with a TC 290 for .00 and:
      Include item/credit reference numbers to reflect the correct amount of exemptions, AGI, TXI, SET, etc.
      Adjust credits, such as EITC or ACTC etc.
      Use a Hold Code 4 to prevent a notice and refund from generating and input a priority code 8.

    • Issue a manual refund to the taxpayer, including applicable interest, for the amount of overpayment (refund) that the taxpayer is entitled to. See IRM 21.4.4.2, What Is a Manual Refund?

    • Prepare a Form 8758, Excess Collection File Addition, to move any remaining credit (generally the amount of the tax that cannot be assessed) to Excess (6800 Account). See IRM 3.17.220.2.2.1, Preparation of Form 8758

    • Open a monitoring control, with activity "87582EXCES" , and category "MISC" , to track the Form 8758 submission to Excess Collection.

    • If the return is in STARS, update the disposition to "DL" to have the return deleted from STARS. Add STARS note: "TC 150 return was good TP’s return, IDT batch tool backed out the incorrect DLN, issue meets clerical error criteria"

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

    • Monitor the account for the posting of the Excess transaction.

    • Close all RIVO control bases after all actions are completed.

Releasing the Refund

  1. When a determination is made that a refund stopped by Return Integrity Verification Operations (RIVO) can be released, follow the steps below:

    • Research payments on the account - ensure the payment(s) belong to the taxpayer identification number (TIN) owner. See IRM 21.5.7.3.1, Remittance Transaction Research (RTR) System.

    • Research for additional freeze codes. Follow IRM 21.5.6, Freeze Codes for procedures.

    • Research the account for credit elect requirements per IRM 21.4.6.5.6, Credit Elects.

  2. "Refiling" the return in the Electronic Fraud Detection System (EFDS) will generate a transaction code (TC) 972 action code (AC) 134 and will release the refund. If the following conditions are present, the refund will need to be manually released:

    • The account contains a TC 971 AC 199

    • The account contains a RIVO computer condition code (CCC) "1" or "3"

    • The account contains a P- freeze or -K freeze

  3. Analyze the account for manual refund criteria per IRM 21.4.4.3, Why Would a Manual Refund be Needed?. Once a determination is made, follow the table below:

    Note:

    Before releasing a refund analyze IDRS using command code (CC) TXMODA to determine that another area will not be impacted.

    If Then
    Manual Refund Criteria is met. See IRM 25.25.13.10, Manual Refund Criteria for Return Integrity Verification Operations.
    Manual Refund Criteria is not met and the refund must be released manually.

    Note:

    Do not input a TC 972 AC 134 when "Refiling" the return in EFDS.

    Input the following based on the account conditions:
    • If a transaction code (TC) 150 is not posted to the module AND a TC 971 AC 134 is posted - input a TC 972 AC 134.

    • If a computer condition code (CCC)"1" or CCC "3" is posted - input a TC 290 for .00 and input a TC 972 AC 134.

    • If a CC NOREF was input to stop the refund (a P- freeze is posted) - input a TC 290 for .00 and input a TC 972 AC 134.

    • If a -K freeze is posted - input a TC 290 for .00 and input a TC 972 AC 134.

    • If a TC 971 AC 199 or a manually input TC 971 AC 134 is posted - input a TC 571 and input a TC 972 AC 134.

  4. If the refund is released and the return is in the Scheme Tracking and Referral System (STARS), update the return disposition to either "DL" or "WL" , to be deleted from STARS. Input a note in STARS explaining the reason for the scheme deletion request per Exhibit 25.25.13-1, STARS Delete Reasons.

    Note:

    Only Headquarters or the designated RIVO POC can input STARS status code "WL" .

Manual Refund Criteria for Return Integrity Verification Operations

  1. The following reasons require a manual refund by Return Integrity Verification Operations (RIVO):

    • Deceased Taxpayer accounts

    • Statute Barred

    • Taxpayer Advocate Service (TAS) requests

  2. Research the account for RIVO indicators. Ensure the RIVO issue has been resolved and the taxpayer is entitled to the refund.

  3. Follow the chart below to resolve the account:

    If And Then
    1
    Deceased Taxpayer Account.
    there is a Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or other documentary evidence per IRM 3.11.3.10.3, Documentary Evidence, on the account, as an Account Management Services (AMS) image or received from another function,

    Exception:

    If it has been more than 12 months since the Form 1310 was received, follow instructions in box 2 below.

    , see IRM 21.6.6.4.22.2, Processing Decedent Account Refunds, for additional information.
    Issue the manual refund per RIVO procedures. See Manual Refund Referral.

    Note:

    Form 1310 must be present before referring the case to the manual refund team.

    2
    Deceased Taxpayer Account.
    there is no Form 1310 on the account or as an AMS image and no Letter 18C, Decedent Refund (Form 1310 Requested), was issued within the last 12 months.
    • Issue a Letter 18C, Decedent Refund (Form 1310 Requested), to the Estate of, if no second name line is present, requesting the Form 1310.

      Note:

      If the Letter 18C was issued within the last 12 months, DO NOT re-issue the letter and follow the instructions in box 3 below.

    • Close the transcript or Form 4442 , Inquiry Referral, control base. Open a new control base to your IDRS number with the following information:
      C#,LTR18C2TP,M,MISC
      *,*

    • Monitor the account for 45 days. If no response is received after 45 days follow block 3 below.

    3
    Deceased Taxpayer Account.
    Letter 18C previously issued within the last 12 months and no response received Move the credit to excess.
    • Prepare a Form 8758, Excess Collection File Addition, to move any remaining credit (generally the amount of the tax that cannot be assessed) to Excess (6800 Account). See IRM 3.17.220.2.2.1, Preparation of Form 8758.

    • Close the transcript or Form 4442 control. Open a monitoring control, with activity "87582EXCES" , and category "MISC," to track the Form 8758 submission to Excess Collection.

    • Close the control once the money has moved.


    4
    Deceased Taxpayer Account
    There is a second name line Refer to IRM 21.6.6.4.22.2, Processing Decedent Account Refunds and IRM 3.11.3.10.3, Documentary Evidence.
    5
    Statute Barred.
    meets erroneous abatement criteria IRM 25.25.13.8, Erroneous Abatement Procedures for Return Integrity Verification Operations (RIVO). Issue the manual refund per RIVO procedures. See Manual Refund Referral.
    6
    TAS Requests.
    Give TAS authority to grant the manual refund on hardship accounts or Issue the manual refund per RIVO procedures . See Manual Refund Referral.

Manual Refund Procedure - Manual Refund Team Only

  1. Procedures in this IRM are for Return Integrity Verification Operation (RIVO) teams issuing manual refunds.

  2. Designated teams will follow the procedures below to review, issue and monitor manual refunds. Utilize the Manual Refund Checklist on the RIVO portal

    Action IRM Reference
    Research the account Follow the instructions in IRM 21.4.4, What Research is Required?
    Prepare the Manual Refund forms Follow the instructions in IRM 21.4.4.5, Preparation of Manual Refund Forms
    Other Manual Refund Requirements Follow the instructions in IRM 21.4.4.6, Other Manual Refund Requirements
    Monitor the manual refund Follow the instructions in IRM 21.4.4.6.1, Monitoring Manual Refunds

STARS Delete Reasons

STARS Delete Reason Standard Note
1
MFT 32 reversal
"non id theft"
2
IDT deemed non IDT and income/withholding verified
"TP authenticated and income/withholding verified"
3
WOW/AQC process substantiated information
"Income/withholding/credits verified by documentation"
4
Not full year prisoner - not GATT
"Not full year prisoner"
5
Income/withholding verified
"Verifies per IRPTR or Verifies per SSA_ORS Database as applicable."

Transferring Credits to Excess

Apply credits to tax in the following order:

  1. Credit elect (TC 710, TC 716)

  2. Estimated tax payments (TC 660)

  3. Payments made on or before the return due date (TC 670, TC 610)

  4. Withholding (transaction code (TC) 806, TC 800)

  5. Credit allowance (TC 766)

  6. Earned Income Tax Credit (EITC) (TC 764, TC 768)

  7. Payments made after the return due date (TC 670, TC 640, etc.)

Move credits to excess collections in the reverse order as follows:

  1. Payments made after the return due date (on statute transcripts, do not move off credits less than 3 years old. These could be refundable.)

  2. EITC (TC 764, TC 768)

  3. Credit allowance (TC 766)

  4. Withholding (transaction code (TC) 806, TC 800)

  5. Payments made on or before the return due date (TC 670, TC 610)

  6. Estimated payments (TC 660)

  7. Credit elect (TC 710, TC 716)

When moving credits to excess:

  • Each credit uses the document locator number (DLN) of that credit

  • Each credit is moved separately, even if there are two of the same credits

  • TC 806, TC 766, TC 764, TC 768, etc. are moved as a TC 820

  • Payments are moved with a reversal such as TC 670 with a TC 672. Always use the received date and DLN of each payment.

See IRM 25.6.1.7.3.1, Transferring Credits to XSF

Scheme Tracking and Referral System (STARS) Disposition Definitions

The table below describes the STARS disposition status codes.

Note:

It is critical to check the Category Code and Disposition of each DLN before updating STARS. The correct combination is needed for the systemic processes to work. Please see IRM for additional information.

Reminder:

STARS Disposition NR means the DLN is not referable to AM or Exam through EFDS and actions must be taken via the Manual Referral Spreadsheet to refer the DLN for further processing.

STARS Disposition Status Disposition Description Disposition Usage Details
A1 QRP Category 1 Pending BRO AM Referral Special Project
A2 QRP Category 2 Pending BRO AM Referral Special Project
A9 Category 99 manual referrals to AQC (HQ only) Special Project
AA Resolved (accepted by AM) Systemic
AC AM Reject Corrected (Austin use only) Special Project
AE Accepted by Exam Systemic
AF Bad/Bad IDT Account with minus A freeze on module Available for update IDRS has an open control to 1487777777 and all returns are deemed IDT
AL Closed (Account Settled on AA) Available for update WOW, External Leads & statute process when making an adjustment for disallowance or there is an erroneous abatement and return is being added to DFS spreadsheet
AM Referred to BRO Accounts Management Special Project
AP Adjustment FDCs (Monitoring) Special Project
AQ ACCEPTED by AQC Systemic
BA Bundle for AM Available for update
BB ID THEFT BAD/BAD Available for update
BE Bundle for Exam Available for update
BG ID THEFT BG Available for update IDT /Good and Open Control to IVO, (Ex. NCAT, ECAT) (IDT return is TC 150) - no - A freeze present on module
BQ Batch AQC Available for update
BT Below Tolerance Special Project
CA Corrected for AM (Reject) Available for update Used to update a disposition that has been holding in the same status for longer than 60 days, or a return with no disposition (field is blank). The use of these codes is determined by the refundable credits on the account. Returns claiming no credits or refundable credits under $500.00. External Leads rejects and IDT overages also use this in their work flow.
CC Returned Refund Check received in Centralized Check Program (CCP) Available for update Confirmed IDT TC 841 posted with no money posted and IVO resolved by IVO
CD CADE Return Lost Refund Final Special Project
CE Corrected for Exam (Reject) Available for update Used to update a disposition that has been holding in the same status for longer than 60 days, or a return with no disposition (field is blank). The use of these codes is determined by the refundable credits on the account. Returns claiming refundable credits of more than $500.00. External Leads rejects and IDT overages also use this in their work flow.
CI CI ID Theft Inventory Received Special Project
CL Closed (Account Settled) Available for update Account is closed, the case has been fully resolved by IVO (CAT 7) or another business unit (CAT 5). Should not be changed without manager/lead determination and approval.
CO Return Sent to Collections Special Project
CQ Corrected for AQC (Reject) Available for update
CT Confirmed ID Theft per TP response Available for update
CX ID Reject (Return is not Identity Theft) Special Project
DB CI ID Theft Received Ignore IRP Special Project
DD Multi DD Ref flip to Paper return Undel treat as IDT Special Project
DE Deferred Exam Inventory Special Project PY2018 QRP Clean-up
DL Delete from STARS Available for update
DR R17 DD Rej Flip to Paper Ref rel rtn Undel trt IDT Special Project
E5 Manual Referral to WOW Available for update True TP Wage/wh and no refundable credits; see Manual Referral Disposition Tab
E6 Manual Referral to AQC Available for update True TP Wage/WH and refundable credits; see Manual Referral Disposition Tab
E7 Manual Referral to WI Exam Available for update True TP HSH with refundable credits; see Manual Referral Disposition Tab
E8 Manual Referral to SBSE Exam Available for update True TP Sch C with refundable credits; see Manual Referral Disposition Tab
E9 Category 99 manual referrals to Exam (HQ only) Special Project
EC Exam QRP case closed Available for update
EL Closed (Account Settled on AE) Available for update
ET Exam Tolerance Special Project
EX Return Sent to Exam Special Project
FF FRIV Filer Special Project
GB ID THEFT GB Available for update Good/IDT and either Credit Balance, Zero Balance, or Balance Due
GT Gas Tax/Fuel Excise to Exam Special Project
HA Hold AM Special Project
HE Hold Exam Special Project
ID ID Theft AMTAP Available for update Used by FRE

Note:

Account will be resolved using the (RICS) IDT Tool

IP In Process Available for update
JA AM Referral Rejected by MFDC Special Project
JE Exam Referral Rejected by CFDC Special Project
LF Prior -L freeze return to be included in open Exam audit Special Project
LO Lost Refund Offset Special Project
LR Lost Refund Final Special Project
ME Math Error No Refund Remains Final Special Project
MR IDT Return Requiring Manual Review for Resolution Available for update Multiple TC 846s, Offsets, etc.
ND CI Reviewed / Not Deleted Available for update
NG No Go As EFDS Selected Referral Special Project
NR Non Referable Return Systemic NR means that the return is non-referable. This disposition indicates that EFDS was unable to refer to any area. Correction or manual referral may be necessary when a return is in this disposition. Review for possible correction before using manual referral process.
NS No Selection Special Project
NT No TC 150 Posted to Master File Special Project
O1 IDT return with good TP address Available for update Address is not to be changed when resolved
OA Offset Adjustment Needed Special Project
OM Operation Mass Mailing Available for update
PA Pending Referral to AM Systemic In the process of being referred; and should not be changed if they are <60 days
PE Pending Referral to Exam Systemic In the process of being referred; and should not be changed if they are <60 days
PJ Identity Theft Project Special Project
PL Prisoner Listing Special Project
PN Pending Actions Special Project In the process of being referred; and should not be changed if they are <60 days
PQ Pending REFERRAL to AQC Systemic In the process of being referred; and should not be changed if they are <60 days
PT "Premium Tax Credit " Available for update Questionable Premium Tax Credit (in process of fraud determination)
PU ID THEFT DDb Filter Fraud Available for update Unpostable 126 RC 0 DLN is deemed IDT during the TPP process. This is a final disposition and should not be changed unless return posted and is being moved into IDT treatment stream.
QL Closed (Account Settled on AQ) Available for update Same as CL for IDT or PU for TPP
QX Rejected while in Waiting for AQC Referral Systemic
R7 Non-Compliant Rule 7 Filter Cases Available for update DDb Non-Compliant filter Rule 7 (with both AOTC and ACTC credits) these are non-income related issues. (In process of fraud determination)
RA Referral to AM Special Project
RE Referral to Exam Special Project
RR Ready for Release Special Project
RV Review for identity theft Special Project
S1 ID THEFT SINGLE BAD NLR Available for update

Note:

Account will be resolved using the (RICS) IDT Tool

S2 ID THEFT SINGLE BAD LR Available for update Spreadsheet work done by TEs 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
SB Single Bad Available for update

Note:

Account will be resolved using the (RICS) IDT Tool.

Selected when the TP was deceased prior to the tax year
ST Statute Return Special Project
TA Taxpayer Advocate Case Special Project
TR ID Theft Triage Required AMTAP Special Project
TT GATT (full year prisoner claiming unallowable refundable credit) Available for update AQC treatment stream for GATT (in process of fraud determination)
W9 Category 99 manual referrals to WOW (HQ only) Special Project
WA Waiting for AM referral (Automation) Systemic
WL Refund released due to workload Special Project Headquarter and RIVO POC update only
WQ Waiting for AQC Referral Systemic
XA Rejected by AM Systemic
XE Rejected by Exam Systemic
XQ REJECTED by AQC Systemic
XW Rejected while in waiting for AM referral (Auto) Systemic
ZA AM Reject after aging (Austin Use Only) Special Project
ZC AM REJECT after aging corrected (Austin Only) Special Project
ZF Z- Freeze Available for update
ZZ CI Use Only Special Project

Scheme Tracking and Referral System (STARS) Category Definitions

STARS Category Category Description
Category 1 Nullity
Category 2 No refundable credits
Category 3 Refundable credits (EITC)
Category 4 Additional Child Tax Credit (ACTC)
Category 5 Account worked by another function
Category 6 Phishing/Bulk filing
Category 7 Identity Theft
Category 8 Questionable Refundable Credits including ACA 15 Premium Tax Credit (PTC)
Category 9 Return Preparer (RPP)