25.25.13 Account Resolution for Integrity and Verification Operation (IVO)

Manual Transmittal

September 23, 2019

Purpose

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

Material Changes

(1) IRM 25.25.13.1 Corrected Policy Owner name, added stakeholders, added goals and link to manager IRM.

(2) IRM 25.25.5.13.1 Corrected Policy Owner name.

(3) IRM 25.25.5.13.2 Corrected Policy Owner name, added link to manger IRM, added link to Embedded Quality IRM.

(4) IRM 25.25.13.1.3 Corrected Policy Owner name, corrected link Policy Statement 4-21, added link to Servicewide Delegations of Authority, added section symbol for IRCs.

(5) IRM 25.25.13.1.4 Corrected Policy Owner name.

(6) IRM 25.25.13.1.5 Corrected Policy Owner name.

(7) IPU 18U1098 issued 07-26-2018 IRM 25.25.13.1.6(2) restrict mailbox.

(8) IRM 25.25.13.1.6(3) Added paragraph for Taxpayer Bill of Rights.

(9) IRM 25.25.13.2 Spelled out acronyms.

(10) IRM 25.25.13.3 Added reminder for -K freeze, spelled out acronyms, corrected IRM links.

(11) IPU 18U1035 issued 07-06-2018 IRM 25.25.13.3(3) table update tolerances.

(12) IPU 18U1098 issued 07-26-2018 IRM 25.25.13.3(3) table update tolerances.

(13) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.3.1 update link for Releasing the Refund.

(14) IRM 25.25.13.3.1 Spelled out acronyms, corrected IRM links, added link to xClaim tool job aid.

(15) IRM 25.25.13.4.1 Corrected statute imminent days from 60 to 90, corrected Operation name, spelled out acronyms, corrected IRM links.

(16) IRM 25.25.13.4.2 Corrected statute imminent days from 60 to 90, corrected Operation name, spelled out acronyms, corrected IRM links.

(17) IRM 25.25.13.4.3 Added procedures for before and after statute has expired, corrected Operation name, spelled out acronyms, corrected IRM links.

(18) IRM 25.25.13.5 Corrected Operation name, spelled out acronyms.

(19) IPU 18U1098 issued 07-26-2018 IRM 25.25.13.5(2) update tolerances.

(20) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.5(2) add manual referral.

(21) IPU 19U0727 issued 06-05-2019 IRM 25.25.13.5(2) add exam referral criteria.

(22) IPU 19U0748 issued 06-10-2019 IRM 25.25.13.5 (2) correct or to and.

(23) IPU 19U0365 issued 03-19-2019 IRM 25.25.13.5(4) add do not refer previous adjustments.

(24) IPU 19U0365 issued 03-19-2019 IRM 25.25.13.5(4) add EFDS will be updated by the POC after acceptance.

(25) IPU 19U0365 issued 03-19-2019 IRM 25.25.13.6 change ASED to 90 days.

(26) IRM 25.25.13.6 Corrected Operation name, spelled out acronyms.

(27) IRM 25.25.13.7 Corrected Operation name, spelled out acronyms.

(28) IPU 18U1098 issued 07-26-2018 IRM 25.25.13.7(1) table box 2 add cross reference indicator.

(29) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.7 added Form 8758 activity.

(30) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.7.1 update folder to PDF.

(31) IRM 25.25.13.7.1 Corrected form links, spelled out acronyms.

(32) IPU 18U1475 issued 11-20-2018 IRM 25.25.13.7.1(3) (1) add exception for package from statutes.

(33) IPU 18U1475 issued 11-20-2018 IRM 25.25.13.7.1(3) (3) add requirement for completed CC TXMODA.

(34) IRM 25.25.13.8 Corrected title for Operation name, corrected form links, spelled out acronyms.

(35) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.9 added manual refund criteria table.

(36) IRM 25.25.13.9 Clarified refund release procedures and when to input a TC 972 AC 134, added statement regarding -K freeze, spelled out acronyms.

(37) IPU 18U1475 issued 11-20-2018 IRM 25.25.13.9(2) update IRM link.

(38) IPU 18U1429 issued 11-06-2018 IRM 25.25.13.10 add section manual refund criteria met.

(39) IRM 25.25.13.10 Corrected Operation name, spelled out acronyms, provided titles for forms and letters.

(40) IPU 18U1475 issued 11-20-2018 IRM 25.25.13.10(3) box 3 add Excess collection process.

(41) IPU 19U0606 issued 05-06-2019 IRM 25.25.13.10 (3) boxes 2 and 3 change 12C to 18C.

(42) IPU 19U0727 issued 06-05-2019 IRM 25.25.13.10(3) box 3 remove 12C.

(43) IPU 18U1429 issued 11-06-2018 Exhibit 25.25.13-2 added Transferring Credits to Excess.

(44) Exhibit 25.25.13-2 Spelled out acronyms.

(45) Editorial changes made throughout the IRM section.

Effect on Other Documents

IRM 25.25.13 dated June 15, 2018 is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) - IPU 18U1035 issued 07-06-2018, IPU 18U1098 issued 07-26-2018, IPU 18U1429 issued 11-06-2018, IPU 18U1475 issued 11-20-2018, IPU 19U0365 issued 03-19-2019, IPU 19U0606 issued 05-06-2019, IPU 19U0727 issued 06-05-2019, IPU 19U0748 issued 06-10-2019.

Audience

Campus employees in Return Integrity Verification Operations

Effective Date

(10-01-2019)

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, 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, 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 12.10.1, 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 1.1.13, Organization and Staffing, 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, Requirements for a statutory notice, including math error authority.

Responsibilities

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

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

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

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

Acronyms

  1. For a list of Acronyms used throughout Return Integrity Verification 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, Integrity & Verification 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
    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
    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
    TC 971 AC 111 is present 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 an IVO process with indicators such as TC 971 AC 052/152
    the refund is held with a TC 971 134, TC 971 AC 199 or computer condition code (CCC) "1" or CCC "3" and return is deemed false determine appropriate work stream and follow appropriate block above
    12
    STARS indication of selection to an RIVO process with indicators such as TC 971 AC 052/152
    the refund is held with a TC 971 134, TC 971 AC 199 or CCC "1" or CCC "3" and return is valid release the refund
    13
    BMF
    the refund was held by an RIVO hold follow BMF procedures, IRM 25.25.1, 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 an IVO control to 1487777777 work per IRM 25.25.13.4.3, Resolving Accounts Assigned To 1487777777

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 has expired follow IRM 25.25.13.7, Barred Assessments.

    If Then
    1
    The return verifies.
    • 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/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.
    • 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 IVO 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. The IRM 25.23.4.11.1, IDT with IVO Involvement, specifically states that the year involved with the case has to have prior Return Integrity Verification Operations (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 is verifiable or 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 is not verifiable.
    the return is a true duplicate.
    • 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 is not verifiable.
    the return is not a true duplicate 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 IVO 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 is not verifiable.
    the return is not a true duplicate 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 verifies, but was backed out in error.
    the taxpayer’s original information must be restored and the ASED has 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 has not expired, but has 90 days or less remaining, follow IRM 25.25.13.6, Prompt Assessments.

    6
    The TC 150 verifies, 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.

Manual Referrals

  1. Manual referrals may not have all Return Integrity Verification Operations (IVO) markers, as the account was stopped somewhere in the process.

  2. A Manual Referral is a questionable or "bad" return that cannot be referred systemically through the Electronic Fraud Detection System (EFDS) and/or meets one of the below criteria.

    Note:

    Do not refer an Operations Assistance Request (OAR) to Automated Questionable Credits (AQC) or Wage and Withholding Only (WOW) using the manual referral spreadsheet. Leave the control open and give the OAR to your Taxpayer Advocate Service (TAS) liaison to send as a "TAS referral" .

    Note:

    Returns where the Statute date has expired or if the statute date on the return is within one year and one month from expiring, are placed on the AQC or WOW Statute tabs as appropriate. It does not matter if the return would normally go to WI Exam or SBSE Exam. The AQC Statute and WOW Statute tabs are for all statute returns or statute returns with only one year and one month or less left on the assessment statute expiration date (ASED). If the ASED is not expired or not within one year and one month, enter the data on the appropriate tab or spreadsheet.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,
    input the reject reason listed on the spreadsheet in EFDS notes,
    and put the document locator number (DLN) on a list to be dispositioned to "WL" . The spreadsheets will need to be compiled for the team by the work leader and sent to the technical advisor on a weekly basis
    If they are rejected by Exam for any other reason manually refer to AQC

    • WOW (non-statute return) - prior processing year returns with false or inflated withholding with no refundable credits.

    • WOW Statute Returns - prior processing year returns with false or inflated withholding with no refundable credits and the ASED is within one year and one month or less from expiring or has already expired.

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

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

      Exception:

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

    • SBSE Exam - Must have Schedule C, Schedule E, Schedule F, or Form 2106 and/or can also have wages and withholding with credits. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule C with refundable credits - must have Schedule C, Schedule E, Schedule F or Form 2106 .

    • AQC - GATT - Wages and Withholding will always be verified good. The taxpayer must be a full year prisoner. 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.

      Note:

      No returns should be referred during screening. See IRM 25.25.2.15, Prisoner Returns. Prior year only returns should be manually referred, all current year returns will follow systemic processes.

      Reminder:

      Re-file the return in EFDS; returns should not be placed in Scheme.

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

    • AQC Statute Returns with credits - prior processing year returns with false or inflated withholding with refundable credits and the ASED is within one year and one month or less from expiring or has already expired.

  3. 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.

  4. 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 and the status is greater than 08.

    • 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 ID Theft. These must be worked by TEs.

    • Do not refer any return that can be sent systemically through EFDS

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

    • If the return is in Disposition ID Theft (status 49) you can still refer the return as long as the return being referred is the true taxpayer and is the TC 150.

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

    • All return dispositions in EFDS will be updated by the point of contact (POC) once the referral is accepted and should be in E3 for WI Exam, E4 for SBSE Exam, E1 for WOW, or E2 for 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 with notes in EFDS.

    • You must ensure all refunds have been stopped.

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

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

  6. For accounts that did not originate in TPP, determine the reason for the refund hold and ensure the return is referred to the appropriate work stream.

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

    • 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: "201212" . 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 spreadsheets.

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

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 add "STAT" to the naming convention.

    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, RIVO will move the case file to the "Ready for Manager" folder and notify the manager via e-mail to sign the Form 9355 .

    5. The manager will sign the Form 9355 and move the case file to the "Ready for Department Manager" folder and notify the Department Manager via e-mail to sign the Form 9355.

    6. 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 e-mail to sign the Form 9355.

    7. The Operation Manager will sign the Form 9355 and move the case file to the "Ready for DMOS Review" folder and notify DMOS via e-mail that the package is ready for review and the Director’s signature.

    8. DMOS 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.

    9. Once the Director signs the Form 9355, DMOS will move the case file into the "Routing to Statute" folder and will notify RIVO the package is ready for routing to Statute.

    10. RIVO will print the entire package and route to Statute. RIVO will move the case file to the "Completed FY 2019" 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 Met with IVO Involvement.
    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 "DL" 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.

Manual Refund Criteria Met with IVO Involvement

  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, on the account, as an Account Management Services (AMS) image or received from another function. Issue the manual refund per RIVO procedures. See Manual Refund Referral.
    2
    Deceased Taxpayer Account.
    there is no Form 1310 on the account or as an AMS image, but there has been contact within the last 12 months per a response received, AMS notes or Form 4442, Inquiry Referral, Form 3911, etc.
    • Issue a Letter 0018C, Decedent Refund (Form 1310 Requested), to the Estate of, if no second name line is present, requesting the Form 1310.

      Note:

      If the Letter 0018C has previously been issued DO NOT re-issue the letter and follow the instructions in box 3 below.

    • Close all RIVO controls.

    3
    Deceased Taxpayer Account.
    Letter 0018C previously issued. 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.

    • 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
    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.
    5
    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.

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

  2. Credit elect (TC 710, TC 716)

  3. Estimated tax payments (TC 660)

  4. Federal tax deposits ( TC 650)

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

  6. Credit allowance (TC 766)

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

  8. 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. Prepaid TC 670

  5. Estimated payments and Federal Tax Deposit payments (TC 660 or TC 650)

  6. Credit elect (TC 710, TC 716)

  7. Withholding credit (TC 806)

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