3.0.275 Business Results Measures for Submission Processing Functions

Manual Transmittal

October 12, 2017

Purpose

(1) This transmits the revised Internal Revenue Manual (IRM) 3.0.275 General, Business Results Measures for Submission Processing Functions.

Material Changes

(1) Editorial changes have been made throughout the IRM

(2) IRM 3.0.275.1 added Internal Controls

(3) IRM 3.0.275.2 updated SP Business Result Measure narrative

(4) IRM 3.0.275.3.1 editorial changes to HQ roles

(5) IRM 3.0.275.2.4 updated SP Business Measure research tools EUP address

(6) IRM 3.0.275.2.8(2) updated Problem Reporting Instructions for NER and LER contact

(7) IRM 3.0.275.2.10 updated SMART Database Cut-Off Dates and Report Information

(8) IRM 3.0.275.2.11 updated SP Business Result retention source

(9) IRM 3.0.275.2.12 updated Time Reporting IRM

(10) IRM 3.0.275.5.1 updated LER definition

(11) IRM 3.0.275.5.3(3) updated IRM references

(12) IRM 3.0.275.5.3.1 updated electronic return instructions for source documents for LER

(13) IRM 3.0.275.6.3 updated DER review instructions

(14) IRM 3.0.275.7.3 updated sample instructions for RT&E

(15) IRM 3.0.275.9.3.1.1 added additional information on Refund Interest

(16) IRM 3.0.275.9.3.6 updated refund case received instructions

(17) IRM 3.0.275.9.3.12 updated IMF and BMF Research Tools

(18) IRM 3.0.275.10.3 instructions for the Lockbox mail out packafe review updated

(19) IRM 3.0.275.10.5(3) deleted note on Return Sort Review

(20) IRM 3.0.275.10.6(1) added the months for 1040X Return Sort Review

(21) IRM 3.0.275.10.6(2) deleted note on 1040X Return Sort Review

(22) IRM 3.0.275.10.7(2) deleted note on Prior Year Delinquent Sort Review

(23) IRM 3.0.275.12.2 updated Reject Correspondence Timeliness Cut-off and Due dates

(24) IRM 3.0.275.5.2 updated RCT DCI Tool Tab instructions

(25) Exhibit 3.0.275-2 updated SMART Database cutoff and report due dates

(26) Exhibit 3.0.275-12 updated NER Cycles

(27) Exhibit 3.0.275-13 updated NER cut-off chart

(28) Exhibit 3.0.275-23 updated Refund Interest Processing Cycles chart

Effect on Other Documents

IRM 3.0.275 dated September 16, 2015 is superseded. The following IPU's are also incorporated into this IRM: IPU 16U1504 issued 10-07-2016, IPU 16U1574 issued 10-21-2016, IPU 16U1601 issued 10-27-2016, IPU 16U1678 issued 11-17-2016, IPU 17U0096 issued 01-12-2017, and IPU 17U0445 issued 03-07-2017.

Audience

Wage and Investment (W&I)

Effective Date

(10-12-2017)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Purpose:The Submission Processing Business Results Measures program is to collect data that will provide a basis for measuring and improving work products by identifying sources of error from processing systems, procedural instructions and site and taxpayer action. The data collected will be used to identify and analyze defect trends and to recommending and submit corrective action.

  2. Audience: Submission Processing Improvement Teams

  3. Policy Owner: Director, Submission Processing.

  4. Program Owner: Submission Processing:Program Management/Process Assurance:Monitoring Section

  5. Primary Stakeholders: Submission Processing.

  6. Program Goals: Collect data that will provide a basis for measuring and improving our work products.

Background

  1. Balanced Measures are used to assess organizational performance at both the strategic level and the operational level. Business results are a balanced measure result element that is used to indicate how well the operations provide accurate and professional services to internal and external customers in a courteous, timely manner.

Authority

  1. The following Internal Revenue Codes provide the authority for the Balanced Measure Reviews:

    • § 801.1 Balanced performance measurement system

    • § 801.2 Measuring organizational performance

    • § 801.4 Customer satisfaction measures

    • § 801.6 Business results measures

    • Taxpayer Bill of Rights

Roles and Responsibilities

  1. The Director of Submission Processing is responsible for policy related to this IRM.

  2. Submission Processing’s Monitoring Section is responsible for the information in the IRM, issuing review guidelines and procedures for all Business Measure Improvement Team reviews. The Monitoring Section makes necessary changes and updates on a yearly basis.

  3. The Monitoring Section manager is responsible for ensuring the IRM is timely submitted to Publishing each year.

  4. Improvement Team Managers must maintain the integrity and quality of the Business Results Measures program.

  5. Improvement Team Analysts perform an unbiased, consistent, and accurate review of all Business Results Measures sample cases.

Program Management and Review

  1. Program Reports: National Business Measure reports for internal and external customers. Provide information regarding reporting of the program objectives. It is not intended to provide instruction for completing any reports. Identify the data sources, storage location, and the primary purpose for this data.

  2. Program Effectiveness: Fiscal year goals, monthly cumulative projected goals and monthly goals are established. Those goals are compared with monthly results, cumulative monthly results, and prior fiscal year monthly results and cumulative monthly results throughout the current fiscal year. A analysis of the results provides insight to performance and changes in work processes. How the program goals are measured. It is not intended to provide instruction for determining the program measured. It is not intended to provide instruction for determining the program effectiveness. These documents may include links to program and quality reviews.

Program Controls

  1. The Submission Processing Measures Analysis and Reporting Tool (SMART) Database is the system used to collect, analyze, and disseminate data pertaining to the Business Results Measures for Submission Processing Functions. The IT manager will determine the SMART permissions and then the employee will complete an On-Line 5081 selecting the appropriate measure.

Terms/Definitions/Acronyms

  1. Below is a list of terms and acronyms used throughout this IRM:

    Defined Terms

    Word Definition
    SMART The database used to collect data pertaining to the Business Result Measures
    Systemic Defect occurred as a result of a Submission Processing programming problem
    Non-Systemic Case was handled incorrectly by the functional area
    Professionalism Minor defects that do not affect the accuracy of the information being sent to the taxpayer.

     

    Acronyms

    Acronym Definition
    ACA Affordable Care Act
    AGI Adjusted Gross Income
    ANMF Automated Non Master File
    AUSPC Austin Submission Processing Center
    BBTS Batch Block Tracking System
    BMF Business Master file
    CADE Customer Account Data Engine
    CARE Computer Assistance Review of Error Resolution System
    CC Command Code
    CCC Computer Condition Code
    CER Computer Condition Code
    CFOL Corporate Files On-Line
    CI Criminal Investigation
    CMR Commissioner’s Monthly Report
    CP Computer Paragraph
    CPA Certified Public Accountant
    CPPAS Computer Paragraph Program Analysis System
    CPAS Corrective and Preventive Action System
    CRX Correspondex
    CSPC Cincinnati Submission Processing Center
    DCF Dishonored Check File
    DCI Data Collection Instrument
    DD Direct Deposit
    ECC/MCC-ECC-MTB Enterprise Computing Center - Martinsburg (W.Va.)
    EFDS Electronic Fraud Detection System
    EFT Electronic Fund Transfer
    EIC Earned Income Credit
    EIF Entity Index File
    ELF Electronic Filing System
    EOD End of Day
    EP/EO Employee Plans/Exempt Organization
    ERS Error Resolution System
    EUP Employee User Portal
    FICA Federal Insurance Contribution Act
    FLC File Location Code
    FMS Financial Management Service
    FTD Federal Tax Deposit
    GMF Generalized Mainline Framework
    HIRE Hiring Incentives to Restore Employment
    HQ Head Quarters
    IAP CSA Interactive Computer Systems
    IDT Identity Theft
    IMF Individual Master File
    IRAF Individual Retirement Account File
    ISRP Integrated Submission and Remittance Processing
    ITIN Individual Taxpayer Identification Number
    ITS Information Technology Service
    IVO Integrity Verification Office
    KISAM Knowledge, Incident/Problem, Service Asset Management
    LDT Lockbox Document Transmittal
    LER Letter Error Rate
    LFC Lockbox File Coordinator
    LOC Lost Opportunity Cost
    LPG Lockbox Processing Guidelines
    MeF Modernized e-file
    MFT Master File Tax Class
    MSU Machine Services
    NAP National Account Profile
    NCOA National Change of Address
    NER Notice Error Rate
    NERD Nationwide Enterprise Resource Domain
    NMF Non Master File
    NRPS Notice Review Processing System
    OFP Organization, Function, and Program
    OIC Offer in Compromise
    OLNR On Line Notice Review
    OTC Office Taxpayer Correspondence
    PN Pending
    POA Power of Attorney
    PRT Problem Reporting Template
    RAIVS Return and Income Verification Services
    R&C Receipt and Control
    RCT Reject Correspondence Timeliness
    RI REfund Interest
    RICS Return Integrity & Compliance Services
    RPC Return Processing Code
    RPD Return Processable Date
    RPS Remittance Processing System
    RPT Responsible Prior Team
    RRPS Residual Remittance Processing System
    RT&E Refund Timeliness and Error Rate
    RT Refund Timeliness
    RER Refund Error Rate
    RTN Routing Transit Number
    RTR Remittance Transaction Research
    RTS Real Time System
    SCCF Service Center Control File
    SCRIPS Service Center Recognition/Image Processing System
    SERP Service wide Electronic Research Program
    SMART Submission Processing Measures Analysis and Reporting Tool
    SOI Statistics of Income
    SPC Submission Processing Center
    SSA Social Security Administration
    TAS Taxpayer Advocate Services
    TIN Taxpayer Identification Number
    TPNC Taxpayer Notice Code
    TXI Taxable Income
    URF Unidentified Remittance File
    UWR Unified Work Request
    USPS United States Postal Services
    WPT Windfall Profit Tax
    WP&C Work Planning and Control

     

Overview of Submission Processing Business Results Measures

  1. This section is designed to provide procedures for program level reviews of:

    • Submission Processing correspondence - letter and notice

    • Submission Processing deposit activity

    • Submission Processing refund processing

  2. This section also provides information about automated program level assessment of:

    • Submission Processing Center deposit timeliness

    • Submission Processing Center refund interest paid

Purpose of Submission Processing Business Results Measures

  1. The purpose of the Submission Processing Business Results Measures program is to collect data that will provide a basis for measuring and improving our work products by:

    1. Identifying sources of error from processing systems, procedural instructions, center and taxpayer action or inaction.

    2. Identifying and analyzing defect trends.

    3. Recommending and submitting corrective action.

    4. Following up with reviews to ensure the corrective action was effective.

    5. Providing input to National Business Measure reports.

Use of Submission Processing Business Results Measures Results

  1. Results of Submission Processing Business Results Measures reviews may not be used as the basis of evaluative recordation for bargaining team employees.

Roles and Responsibilities in the Submission Processing Business Results Measures Program

  1. The success of the Submission Processing Business Results Measures Program depends on the participation of all of the following:

    • Wage and Investment Submission Processing Headquarters staff

    • Submission Processing Center Planning and Analysis Departments

    • Submission Processing Center Improvement Team Managers and Improvement Team Analysts

Headquarters Roles
  1. Headquarters is responsible for issuing review guidelines and procedures for all Business Measure Improvement Analysis reviews.

  2. Headquarters will review the Business Results Measures Program as part of periodic reviews of Submission Processing programs.

    Note:

    When program reviews are conducted, the Headquarters analyst will attempt to review cases that can be corrected within the sampled month or two-month period after the Monthly Report Run date. For Notice Error, Refund Timeliness and Refund Error the Headquarters analyst will provide the Submission Processing Center (SPC) with a list of cases to be reviewed. The SPC will be required to request the returns and have available all documentation necessary to perform the review. In addition, there may be times when the Headquarters analyst will want to review cases that are past the cut off. This will generally involve cases worked during the peak filing season or those worked at the end of the fiscal year.

  3. Headquarters administers the SMART database.

  4. Headquarters will maintain the Business Results Measures section of the Submission Processing Home page.

Improvement Team Manager
  1. Improvement Team Managers must maintain the integrity and quality of the Business Results Measures program by monitoring and reviewing monthly a sample of all work assigned to an Improvement Team analyst. This review must include cases on which errors have been identified and cases coded as perfect cases. Improvement Team Managers will work with local functional management to arrange for manual sampling and case retrieval when necessary. In addition, a quarterly managerial review will be conducted on the technique used in pulling the sample for each measure. The manager will keep a log of the reviews conducted for the measures.

  2. Improvement Team Managers will train their clerical staff to use valid sampling techniques and review monthly the daily sampling log used by the clerical staff to ensure valid sampling was performed. See IRM 3.0.275.1.5. (5)d.

  3. Improvement Team Managers must inform Headquarters of any problems encountered in obtaining required sample sizes during a review period.

  4. Improvement Team Managers and their staff determine the causes that adversely affect quality and timeliness by identifying error trends. Improvement Team Managers and their staff recommend corrective action to functional areas and if recommended corrective action is implemented perform a Follow-up review.

  5. Improvement Team Managers will establish a designated Functional Contact for each impacted functional area for each of the Business Results Measures. Improvement Team Managers will ensure that sample cases that require rework are forwarded to the Functional Contact timely and rebuttals are returned timely.

  6. Improvement Team Managers will arrange for the analysts to attend functional training of areas that impact the Business Results Measures. For additional courses available for Improvement Team managers, visit the Enterprise Learning System (ELMS) located at http://elms.web.irs.gov.

  7. Improvement Team Managers must ensure the IRM 10.2.14 (2), Methods of Providing Protection, for "Clean Desk Policy" is followed. All taxpayer information must be in a lockable container during non-duty hours.

Improvement Team Analyst
  1. For all Business Results Measures Improvement Team reviews, Improvement Team Analysts will thoroughly review sample cases using the guidelines in this section.

  2. Improvement Team Analysts perform an unbiased, consistent, and accurate review of all Business Results Measures sample cases.

  3. Improvement Team Analysts should provide their manager with:

    • Any cases identified for rework

    • Regular analysis of error trends

  4. Improvement Team Analysts will:

    1. Review work against established IRM procedures ( IRM 3.0.275.1.9.).

    2. Apply consistent review and case analysis techniques.

    3. Attend functional training of the areas that impact the Business Results Measures.

    4. Have a good working knowledge of the functional areas and programs they review.

    5. Record complete review results using the SMART database and review the database for consistency in coding.

    6. Report all problems in sampling, case review, and source document availability to the Improvement Team Manager.

    7. Coordinate with their manager if additional training is necessary (e.g., Computer basics).

Submission Processing Business Results Measures Research Tools

  1. The following list is not all inclusive, but it provides a foundation of the most frequently used research tools for Business Results Measures reviews.

    • The primary references are the chapters of IRM Part 3, Submission Processing. All functional procedures and guidelines related to Submission Processing functions are found in Part 3. (Notice Review procedures are found in IRM 3.14.1, IMF Notice Review and IRM 3.14.2, BMF Notice Review.)

    • Integrated Data Retrieval System (IDRS) and Corporate Files On-Line (CFOL) Command Code instructions are found in IRM 2.3, IDRS Terminal Response, and IRM 2.4, IDRS Terminal Input.

    • The Submission Processing Business Results Measures Program encompasses a wide range of functions. Each Submission Processing Improvement Team should establish a library or have access to all necessary IRMs. Improvement Teams should also have access to the Program Requirements Packages (PRPs) for Master File programming and Functional Specifications Packages (FSPs) for Submission Processing Center processing.

    • Any IRS publication can be cited as a reference source. Procedural instructions, particularly when looking for the source of taxpayer error trends, can be found in the publications.

    • The Submission Processing Home Page on the IRS Intranet contains links to a variety of sources of reference material. Access the home page at:
      http://win.web.irs.gov/sp/

    • The "Statistical Abbreviations" is a web site that contains the definitions for the acronyms/abbreviation. Access the web at: http://rnet.web.irs.gov/Resources/Acronymdb.asp

    • The official method for communicating IRM Part 3 changes, clarifications, and corrections is through Servicewide Electronic Research Program (SERP) Alerts.

      Note:

      Do not charge defects related to IRM or procedural changes until seven calendar days after the SERP Alert posting date of the IRM update or change. However, additional time may be granted if nationwide training is necessary to implement the change. Provide feedback to local functional areas until seven calendar days after the SERP Alert posting date of the IRM update or change.

    • The Employee User Portal (EUP) may be used for MeF returns whenever an accurate ICO Rejects case closure date is necessary (due to the TC 150 resequencing) or a print of a tax return is necessary to support your review findings. Access to EUP is available through OL5081 using the permissions “BTXRTNV_PR (MEF-EUP)” and “IMF TAX RETURN USER (ITXRTNV_PR) (MEF-EUP)”

      Note:

      You may access the EUP Login Screen through the following linkhttps://eup.eps.irs.gov/EUP/welcome

    • The Employee User Portal (EUP) may be used for MeF returns whenever an accurate ICO Rejects case closure date is necessary (due to the TC 150 re-sequencing) or a print of a tax return is necessary to support your review findings. Access to EUP is available through OL5081 using the applications “BTXRTNV_PR (MEF-EUP)” and “IMF TAX RETURN USER (ITXRTNV_PR) (MEF-EUP)”. When requesting access to these applications, be sure to add “Analyst needs access to view MeF returns” into the special instructions column. NOTE: You may access the EUP Login Screen through the following link: https://eup.eps.irs.gov/eup_login/

  2. The Submission Processing Home Page contains a section specifically for Business Results Measures information, which includes:

    Data Dictionaries - Includes in-depth workload/performance indicators for each of the Individual Master File (IMF) and Business Master File (BMF) Business Results Measures.

    General Issues - Contains the cut off and due dates of the Business Results Measures reports.

    Conference Notes - Minutes from the Business Results Measures meetings.

  3. Business Results Measures Templates - Maintains the results for IMF and BMF.

    • Do not use training material, locally created job aids that deviate from the IRM, local processing agreements or commercial tax publications when reviewing sample cases for Business Results Measures.

    • In conducting reviews, you may need access to other automated systems. Your manager is responsible for contacting the appropriate systems administrators to grant access rights.

  4. When NEW Letters or Notices are added to the Correspondence Error Rate (CER) Measure a Courtesy Review is conducted before incorporating the new product into the measure. The first step taken by the HQ analyst for this Courtesy Review is to contact IT to have the new product added to the sample (ensure they are added before the new month's review begins). Prior to conducting the Courtesy Review, contact Statistics of Income (SOI) and let them know your plans. During the Courtesy Review, SOI will not incorporate the volumes associated with the Courtesy Review into the skip interval calculation, because the results will not be included in CER. The normal skip interval can be used to select cases for both CER and the Courtesy Review, but the Courtesy Review cases and the volume (do not include in the Volume of Universe) associated with the Courtesy Review must be dropped from the sample for CER. When the Courtesy Review is completed, contact SOI to inform them that you will be adding a new notice(s) or Letter(s) to the CER measure. If notices are being added, then SOI will start including the volumes for the new notice(s) into the skip interval process. If letters are being added, then you will need to work with SOI to develop a methodology for estimating the volume for the new letters on a monthly basis for a 12 month period. Once the new notice(s) or Letter(s) have been incorporated into the CER measure, they should not be removed. The length of the review will be determined by the Headquarters analyst assigned to the measure.

    Note:

    This excludes new systems that do not provide new letters or notices.

  5. To assist in communication and sharing of Measures data the Headquarters Measures analysts established a centralized Nationwide Enterprise Resource Domain (NERD) shared drive in 2005. This provides a place where emails, documents, and historical Measures data can be stored for easy access by all analysts and champions (Headquarters and SPC) working with Measures. The Headquarters analysts are not required to use this site. The Letter Error, Notice Error and Refund Interest are using the site extensively. Managers need to contact Joan D. Williams or Darlene Ammer via Email to obtain the steps needed to access the Wage and Investment (W&I), Submission Processing Business Measures NERD Shared Folders.

Submission Processing Business Results Measures General Sampling Guidelines

  1. Improvement Teams are responsible for ensuring that output from automated sampling runs for Business Results Measures programs are received on a timely basis. If you do not receive an expected sample run, open a Knowledge, Incident/Problem, Service Asset Management (KISAM) ticket following local procedures. Inform the Headquarters analyst assigned to the program if you continue to experience problems receiving sample run output.

  2. Improvement Team Managers are responsible for contacting the appropriate Headquarters analyst immediately when they identify problems with an automated sample run (for example, the sample size is much smaller or larger than expected).

  3. Improvement Teams are responsible for manually sampling cases for the Deposit Error Rate Measure, non-IDRS correspondence for the Letter Error Rate Measure and closed cases from the Notice Review area for the Notice Error Measure. The Headquarters analyst responsible for the measure will provide a monthly sampling plan. The Improvement Team manager is required to perform a bi-annual review of the Improvement Teams to ensure the procedures are being followed and to see if updates are needed.

  4. If a decision is made at your SPC to have a functional area (other than the Improvement Team) pull the manual sample (other than for Deposit Error Measure, IRM 3.0.275.5.2. for sampling guidelines) the Improvement Team must provide the Manual Sampling Procedures to the functional area. Improvement Team is required to perform a bi-annual review of the functional area's sampling to ensure the procedures are being followed and to see if updates are needed.

  5. To ensure a reliable and valid sample, you must follow the instructions below when manually sampling cases for Business Results Measures.

    1. Every item that is subject to sampling must have an equal chance of being selected for review. For example, all non-IDRS correspondence subject to Letter Error Rate review must be available for sampling.

      Note:

      The manually pulled sample should be conducted after Quality Review has pulled their sample. This ensures the functional area had the opportunity to correct the return before Improvement Team sample.

    2. On the first day of the sampling period, use the random start number to select the first sample case. Use the skip interval to select subsequent documents for review. Use the random start number only at the beginning of the sampling period, even if the skip interval changes during the period.

    3. Begin each day's count with the remaining count that followed the last document selected on the previous day. For example, your skip interval is eight. On Monday, when you selected the last case for review, there were five cases remaining. Begin Tuesday's count at six cases. In effect, you are choosing the third case from Tuesday's work. However, that case is the eighth case in the skip interval sequence.

    4. Keep a daily sampling log for each measure showing the total number of cases available for review, the skip interval you used, the number of cases sampled, and the number remaining after the last case was selected.

Business Results Measures Communication of Defective Case(s)

  1. This section applies only to sample cases that are included in the computation of the Business Results Measures.

  2. For all Business Results Measures, if a repeating defect is identified, all defects must be coded. An example: A tax examiner did not follow procedures. If additional cases are pulled that have been worked by the same employee and contain the same defect, all cases will be coded for that defect.

  3. If the Improvement Team analyst did not define the error correctly, or charged the error erroneously and a subsequent error was found upon further review, the functional area will be charged the new or different error.

  4. When a defect is identified, the functional area responsible for correcting the case will receive a Communication Record. No response is required if you agree with the defect. See Exhibit 3.0.275-1. The format of this Communication Record is left to the discretion of individual SPCs, but must contain the following information:

    1. Case Identification: Case number, date the case was reviewed, response date (3 business days beginning the day after the review date), functional area responsible for defect, and copy of the defective case.

      Note:

      The correction of the case should be made within two weeks of receipt. The Improvement Team will monitor for correction and if not corrected make contact with the functional area.

    2. Research Information: Indicate IRM references (if applicable) for defect(s) identified and defect description (a concise description of the defect(s) identified).

    3. Functional Contact Representative: If the Functional Contact representative disagrees with the Communication Record, it must be returned by the response date on the Communication Record. If additional time is necessary, the Functional Contact must contact the Improvement Team analyst or Improvement Team manager to request an extension (this additional time can be no longer than 5 business days after initial response date). The Functional Contact will include the date of review, their signature, phone number, comments, and backup to support the rebuttal.

      Note:

      Depending on local procedures, the Improvement Team analyst may share the case with the functional area prior to inputting case data into the SMART database. If a defect is identified at the end of the cut off time for SMART input, you must contact the Functional Contact to request a quicker turnaround time.

  5. If the Functional Contact agrees with the defect, it is their responsibility to ensure these defects are shared with the individual employee; and, if a trend is identified, shared with the functional area. For all measures, arrangements must be made for an area other than the Improvement Team to complete the correction to Master File when Deposit, Tax Period, Master File Tax, Name Lines, Received Date, Taxpayer Identification Number/Social Security Number, Tax, Credits, Address, etc., is affected. For all measures, each SPC must develop a Defect Monitoring log to track all defects, ensuring errors needing correction have been corrected within a two week period. Document the action taken and date closed. This log must be available upon request from Headquarters. If the correction has not been made within two weeks then a follow-up will be required by the Improvement Team analyst. Any corrections not made within three weeks should be referred to management.

  6. If the Functional Contact does not agree with the defect(s) the Improvement Team analyst identified, and the Improvement Team analyst agrees with the rebuttal, edit the database to reflect the change. Communicate your agreement to the Functional Contact.

  7. If the Functional Contact does not agree with the Improvement Team defect(s), and the Improvement Team manager does not agree with the rebuttal from the Functional Contact, the Improvement Team manager will forward the case(s) to the Headquarters (HQ) analyst responsible for the measure using the Improvement Team Review Defect Rebuttal Procedures. See IRM 3.0.275.1.7. The case(s) submitted to the HQ analyst must include, if applicable, all IRM references, etc. used by the Functional Contact and Improvement Team.

    Note:

    The Improvement Team manager will inform the Functional Contact that the rebutted case(s) will be forwarded to HQ for resolution. Any disputed defect removed without following the Defect Rebuttal Procedures should be faxed or mailed to the Measures Headquarter Analyst. Remember, disclosure procedures should be followed when faxing or sending information. See IRM 3.0.275.1.10 for additional information that is required on the monthly narratives sent to HQ.

  8. Provide Taxpayer error information to your Local Communication Office (e.g., Certified Public Accountant (CPA) trends, Taxpayer trends, Tax Preparer trends).

Improvement Team Review Defect Rebuttal Procedures

  1. Occasionally, you may not be able to resolve a defect rebuttal case at the SPC (e.g., all who would have a stake in resolving the case) level. If this happens, the Improvement Team Manager will refer the disputed case to the Headquarters Measures Analyst responsible for the case(s) product line.

  2. The referral must contain the Document Collection Instrument (DCI) number of the disputed case and an analysis of the defect from the Improvement Team analyst and the functional area. You must provide any research material (e.g., IRM references) you relied on when originally reviewing the case.

  3. All disputed cases should be resolved prior to the monthly cutoff date. See Exhibit 3.0.275-2. for cut-off dates and report due dates for all Business Results Measures. SPCs should make every effort to ensure cases sent to Headquarters Measures Analyst are received no later than the Monday prior to the monthly cutoff date. If the cutoff date has passed, the cases will still be sent to the Headquarters Analyst for resolution. These cases will then be captured in the cumulative results.

  4. The Headquarters Measures Analyst will respond to the SPC within five business days. The Headquarters Measures Analyst will consider both areas statements and will make the final determination of whether or not a defect has been appropriately identified.

Problem Reporting Instructions for Notice and Letter Error Rate

  1. If a systemic problem has been identified during the review process for Notice or Letter Error, complete the Problem Reporting Template (PRT) using the following steps. To print a copy of the PRT, go to the Submission Processing Home Page located on the IRS Intranet, and find the header "Programs and Information" and click on "Notices and Letters" and select "Correspondence Problem Reporting Template." Access the home page at http://win.web.irs.gov/sp/.

    1. Enter correspondence type. This will most commonly be the Computer Paragraph (CP) or Correspondex (CRX) letter number. Leave this box blank when reporting an equipment problem.

    2. Enter the name and telephone number of the person who identified the problem. Headquarters may use this information if additional data about the problem is required.

    3. Enter the date and time that the problem was identified. The problem report tracking system uses the date and time to trigger various reporting and escalation actions.

    4. Provide the cycle(s) during which the problem is present, if applicable.

    5. Numbers 6a through 8, circle the appropriate answer.

    6. Provide a description of the problem being reported. Include information about the status of the problem and any actions taken to reduce the impact of the problem on taxpayers or other functions/operations. Provide IRM reference when appropriate. In addition, provide Improvement Team coding of the error. Before faxing ensure you include TXMOD prints, IMFOLT/BMFOLT, ENMOD, and other supporting documentation. Do not sanitize the documents, only sanitize when instructed; the pertinent information on the notice is needed for research.

  2. When the PRT has been completed for IMF or BMF Notices/Letters email the PRT to the CER Analyst -Stuart Simpson(816–499-4537). Also, scan or fax the notice/letter and send to the CER Analyst (fax 816–499-7795). Encrypt the notice when sending. The CER Analyst will submit the notice/letter to the Office of Taxpayer Correspondence (OTC) for change/corrections.

  3. The Headquarters Measures Analyst assigned to Letter or Notice Error will review the PRT and coding. If the HQ analyst agrees with the PRT then the HQ analyst will share with all SPCs and post information from the PRT on the "Submission Processing Notice or Letter Systemic Error Chart." In addition, the HQ analyst will post the PRT to the "Shared Drive" for Notice or Letter Error.

  4. The HQ WEB Page owner will post the "Submission Processing Notice or Letter Systemic Error Chart" to the Business Results Measures section of the Submission Processing web site (http://win.web.irs.gov/sp/).

  5. The HQ Notice and Letter liaisons will be responsible for coordinating, monitoring, providing status updates, and tracking of the Notice/Letter PRTs to resolution.

  6. After the systemic error has been corrected then it will be removed from the "Submission Processing Notice or Letter Error Systemic Chart."

Business Results Measures Review Guidelines

  1. When reviewing a sample case for a Submission Processing Business Results Measure, you may take into account local procedures that do not conflict/deviate with the appropriate IRM instructions. Share all local procedures with the appropriate HQ IRM analyst. Post requests for deviation from the IRM via the "SERP Alert" system, and cannot be implemented until the IRM owner grants approval.

    Note:

    All approved "SERP Alert" procedures will be incorporated into the next revision of the appropriate IRM. If the procedure has not been incorporated within one year of the approval, then the IRM procedure is obsolete. See IRM 1.11.1, IMD Program and Responsibilities, and see IRM 1.11.2, Internal Revenue Manual (IRM) Process for additional information.

    Note:

    IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2,Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

  2. The unavailability of any program (e.g. QRADD, Computer Assistance Review of Error Resolution System (CARE), percent reviews, managerial reviews) that could improve the quality of work will not remove a sample case from the Business Result Measures reviews. If non-systemic errors are identified, they must be charged to the appropriate functional area, and not as Systemic, unless it can be proven that the quality system was directly responsible for the error. These reviews are enhancements to the initial processing of the return and are only tools to improve the results.

  3. When a defect is identified, the analyst must determine what type of defect to charge. The following definitions should assist in ensuring consistency of coding:

    • Accuracy (Non-Systemic) - Case was handled incorrectly by the functional area.

    • Accuracy (Systemic) - Defect occurred as a result of a Submission Processing programming problem (excludes any programs to improve the quality of the product), or incorrect/outdated IRM procedures. (Notice Error, Letter Error, Business Return Error, Refund Timeliness and Error only).

    • Professionalism (Non-Systemic) - Minor defects that do not affect the Accuracy of the information being sent to the taxpayer. These defects include incorrect punctuation, capitalization, and spacing defects made by the functional area. (Notice Error, Letter Error, and Refund Timeliness and Error only).

    • Professionalism (Systemic) - Defect occurred as a result of a programming problem, incorrect/outdated IRM procedures, or when a properly working system results in a less than ideal product. (Refund Timeliness and Error only).

      Note:

      The Notice and Letter Error measures will no longer code these types of errors. However, a Problem Reporting Template (PRT) will be required for every systemic professionalism error. Check the Systemic Chart to see if the error has been reported previously. If not, complete the PRT and submit it to HQ. The PRT's will be monitored by the HQ Measure owner until corrected. See IRM 3.0.275.1.8, Problem Reporting Instructions for Notice and Letter Error Rate, on completing a PRT.

  4. When coding any sample case for a Submission Processing Business results Measure, DO NOT include sensitive data into the SMART database. This includes taxpayers names, phone numbers, addresses, and taxpayer identification numbers. This type of information is considered privileged and would be unauthorized disclosure.

SMART Database Cut-Off Dates and Report Information for All Business Results Measures

  1. For cases to be included in the monthly (period) report, the cut-off date for inputting these cases is the close of business on the 22nd day of the month following the end of the sample month. Therefore, the period rates shown may represent only a subset of the entire monthly sample and can only be considered preliminary in nature. To ensure that the monthly report represents the actual error rate for your center, enter as many cases as possible before the Monthly Report Run date. It is recommended to input the review information into the SMART database within one business day after coding.

    Note:

    In reviewing the Service Center Reports on SMART remember these reports are "real time" reports and continuously reflect changes made by the SPCs after the National reports are run on the 23rd. These reports change every time a case is loaded and only reflect results at the specific time they are viewed. See Exhibit 3.0.275-2.

  2. Cases input after the cut-off date will be included in the following months cumulative rate (not the period) (e.g., June cases coded after the 22nd day of July will be reflected in the cumulative rate of the month it was input). Therefore, the only figure that includes all coded cases to date is the current month's cumulative.

    Note:

    In reviewing the National Reports on SMART remember these reports are generated on the 23rd of each month, providing a data "snapshot" at that moment. Adding data after the "snapshot" will not change the National reports for that month. Any case loaded after the National Report running will roll into the cumulative for the current month.

  3. For Notice Error, Letter Error, Deposit Error, and Refund Timeliness and Error any updates/edits to the SMART database after the data cut-off date may be input for two months after the Monthly Report Run date. Additionally, for Deposit Error, Notice Error, and Letter Error any additional cases from the original sample month may be added for two months after the Monthly Report Run date. However, no additional cases can be added for the Refund Timeliness and Error measures. When edits or additions are made after the Monthly Report Run date, they will be reflected in the cumulative for the month the updates/edits/additional cases were input. At the end of the two month period, any cases not coded will be deleted from the database.

  4. Reports for the fiscal year must be finalized by the end of October. Therefore, all August and September updates/edits/additional cases must be input by October 22. The Fiscal Year Narrative report will be due four working days after the September Monthly Report narratives are due to Headquarters. The final report should also include a comparison of last year’s results to this year’s results. If any, what issues occurred this year that impacted the measures results. What action did the operations take to improve the measures (e.g., developed job aid, special task teams, action plan). What action did the Improvement Team take to improve the measures.

  5. National Reports will be generated on the 23rd of the month following the end of the sample month data cut-off date and will be posted to the Submission Processing Web Page on or about the last business day of the month. See Exhibit 3.0.275-2.

    Note:

    The following is the time on the 23rd of each month that the measures data automatically generates the reports. This is Central time (Austin Time).
    4:00 a.m. - Notice Error Update
    4:00 a.m. - period data and 4:30 a.m. Cum data - Deposit Error Update
    4:00 a.m. - Business Return Error Rate
    5:30 a.m. - Refund Timeliness and Error Update
    4:00 a.m. - Deposit Timeliness Update
    6:00 a.m. - Letter Error Update
    6:15 a.m. - Correspondence Error Rate

  6. Narratives are due to Headquarters for all measures by Close of Business (COB) on the “Narratives to HQ” date in Exhibit 3.0.275-2. Send narratives to the Headquarter Monitoring Section Manager and Lead with a carbon copy to the Headquarters Measures Analyst assigned to the measure. The Business Results Measures Monthly Narrative Report will include and address the following:

    • SPC Goal

    • Period Rate

    • Cumulative Rate

    • Number of Errors

    • Number of Documents/Cases Reviewed

    • Number of cases still pending (Deposit Error, Letter Error, Notice Error, Business return Error, and Refund Error) for the current month and any other pending cases identified by the month case(s) were pulled (e.g., current month - April 2 cases pending. Prior month March 3 cases pending.)

      Note:

      The next month's analysis will address the results of the pending cases from the previous month(s) and any other cases still pending. Headquarters is concerned these cases may be more prone to error than the timely reviewed cases.

    • Number of cases closed due to insufficient data (Deposit Error, Letter, Notice, Business Return Error and Refund)

  7. Comments must include:

    1. For all measures, whether the SPC goal was met or not met. If a change of seven percent (plus or minus) difference from the Corporate Monthly Cumulative Goal provide causes for the change (e.g., was it due to attrition, legislative changes, procedural changes). Use the SMART database to assist in identifying trends for both systemic and non-systemic (both period and cumulative) errors. If a trend is identified, explain what was the cause for the trend (e.g., was it procedural, training). Is the trend different from last year? If yes, explain the change. Make contact with your Operations to determine if something happened that caused the SPC goal to be met or not to be met (e.g., could be procedural change caused a higher error rate, new process improved the SPC rate). For the Deposit Error Measure, provide a breakdown of cases reviewed (how many R-RPS, Transport, PPU, Field, Lockbox or Non Transport).

      Note:

      It is important to analyze the data provided by SMART and capture any initiatives that your SPC has initiated.

    2. Provide information from the Operations on what they are doing to improve the measures results. Provide the specific initiatives implemented to improve the work product. For example: Action Plan initiatives, Just in Time Training, Special Procedures, 100 percent reviews, Champions, task teams.

      Note:

      If the information provided by the Operations does not change from month to month there is no need to repeat your narratives, just state no change. However, address error trends or extraordinarily great performance, any new initiatives, and any previously submitted initiatives or actions that have been discontinued.

    3. Provide via an attachment any guides or other information that has been distributed by your SPC. For example: Quality Alerts, Weekly Reports.

    4. If cases are being closed due to insufficient data, no source document, or lack of back-up material, please elaborate on why the data is not available, and what is being done to address the issue.

    5. Address open cases from the previous month by supplying the results of these cases (e.g., 10 open cases, 8 correct, 2 errors - Errors included).

    6. All rebutted/disagreed cases must be captured in the comment section of the Monthly Narrative Report. Include number of cases rebutted/disagreed, number of defects charged/removed, and the reason why the defect was charged/removed. In addition, a file must be established that will include all cases that cannot be agreed upon by all parties (e.g., Improvement Team manager, Improvement Team analyst, Operations, Planning and Analysis (P&A). Monthly, a copy of these cases must be either faxed or mailed to HQ for review. This will ensure that the determinations made are consistent with the intent of the measure.

    7. Any additional information that will assist HQ in reporting to upper management.

      Note:

      To print a copy of the Business Results Measures Monthly Narrative Report go to the Submission Processing Home Page on http://win.web.irs.gov/sp/ the IRS Intranet go to Programs, select Measures, then select "Business Results Measures Reports" then select Balance Measures Template Monthly Report.

  8. Five full years of data will be kept on the database. After 5 years, the data will be stored on an Austin storage server.

Submission Processing Business Results Measures Records Retention

  1. The IMF and BMF Improvement Teams must retain, on site, six months of case files for each Business Results Measure. After six months, the case files can be sent to the Record Retention area. See Document 12990, "Records and Information Management Records Control Schedules" Number 23, Quality Review Forms, Reports and Records (1) (a), as a guideline/reference for retention of the Business Results Measures data. On the paper work to be submitted under "sample control" indicate DCI forms, as the type of record. DO NOT send case files to Federal Record Center. The Record Retention area can destroy these case files after one year. If a SPC is ramping down contact Headquarters for direction on destroying cases prior to the SPC shutdown.

  2. Required Documentation for Business Results Measures Case Files:

    • Letter Error - each case file should contain a copy of the DCI, a copy of the return or source document, and a copy of all associated research.

    • Deposit Error- each case file should contain a copy of the source document(s) and posting document. A copy of the DCI is optional.

    • Refund Timeliness and Error - case coded as perfect - case file should contain a copy of the DCI, IMFOL prints, and any additional documentation to support your coding decision. Case coded as not perfect - each case file should contain a copy of the DCI, a copy of the return, IMFOL prints, and any additional documentation to support your coding decision.

    • Notice Error - case coded as perfect - case file should contain a copy of the DCI, a copy of the CP notice, and any other documentation to support your coding decision. Case coded as not perfect - case file should contain a copy of the DCI, a copy of the CP notice, a copy of the return, and any other documentation to support your coding decision.

    • Refund Interest - each case file should contain a copy of the DCI, a copy of the return or source document, and a copy of all associated research.

    Note:

    Supporting documentation does not necessarily mean that the entire return must be photocopied. Copies of all appropriate pages should be attached.

Submission Processing Business Results Measures Time Reporting

  1. See IRM 3.30.20, Organization, Function and Program (OFP) Codes, for appropriate Work Planning and Control (WP&C), Organization, Function, and Program (OFP) time reporting codes for Business Results Measures work performed in the Submission Processing Improvement Teams.

  2. The OFP 880-08120 (Program Business Results Measures Review) with a 5th digit will identify the Business Results Measures reviewed:

    • Refund Timeliness and Error Rate - 880-08121

    • Deposit Timeliness and Error Rate - 880-08122

    • Letter Error Rate - 880-08123

    • Notice Error Rate - 880-08124

    • Refund Interest - 880-08125

    • Reject Timeliness - 880-08127

  3. The OFP 880–08190 (Improvement Team-Clerical) with a 5th digit will identify the clerical time spent on each Business Results Measures:

    • Refund Timeliness and Error Rate - 880-08191

    • Deposit Timeliness and Error Rate - 880-08192

    • Letter Error Rate - 880-08193

    • Notice Error Rate - 880-08194

  4. All centers, if Functional areas are performing additional (or increased) reviews to improve Business Results Measures use OFP 880-08040.

Entity Review for Letter Error, Refund Error, and Notice Error

  1. For Refund and Notice Error when reviewing either the Entity or Address, a defect that results from the Entity Index File Response is charged as a systemic defect.

    Note:

    See IRM 3.0.275.6.6.2. Refund Error Rate Review, for information on the Entity Index File processing.

  2. Code an incorrect middle initial as a Professionalism defect.

    Note:

    For these measures, an omitted middle initial is not a defect.

  3. Code an incorrect designation of the name as an Accuracy defect (e.g., Jr., Sr., etc.).

    Note:

    Omission of "Jr." , "Sr." , "III" , etc., when it appears on the return is a Professionalism defect.

  4. Any misspelled names will be coded as a Professionalism defect. Exception: If the first four characters of the taxpayers last name (primary or secondary) are incorrect or transposed, code as an Accuracy defect (e.g., SMIT input SITM) or notice shows name line as "To H" and taxpayer name is Tony).

  5. If the Name Line exceeds the maximum number of characters (35) and the IRM instructions were followed, no defect will be charged. See IRM 3.12.3 Error Resolution - Individual Income Tax Returns and IRM 3.13.5 Campus Document Services - Individual Master File (IMF) Account Numbers for instructions covering changing/correcting the first name line.

    Note:

    Do not enter the full name of a taxpayer when the name line was incorrect. In the DCI comment field state, name line incorrect.

  6. If reviewing a Second Name Line use the table to determine appropriate coding:

    Review of Second Name Line

    If.. And.. Then..
    The source document/return does not show a 2nd name line,   Review the 2nd name line on the notice/letter/return for obvious misspellings only.
    The source document/return shows a 2nd name line, The 2nd name line on the notice/letter does not match the source document/return, but contains the same information, Do not code as a defect.
    The source document/return shows a 2nd name line, The 2nd name line on the notice/letter does not match the source document/return, and contains completely different information, Code as an Accuracy defect. Notice Error and Refund Error, route a copy of the case to Entity for resolution.
    The source document/return shows a first and 2nd name line, The name lines are reversed but contain the same information, Do not code as a defect.
    The source document/return shows a 2nd name line, There is no 2nd name line present on the notice/letter, Code as an Accuracy defect. Notice Error and Refund Error, route a copy of the case to Entity for resolution.

     

  7. Omission of MINOR when it is required by processing or it is not transcribed will be considered a Professionalism defect.

  8. If Deceased (DECD) or "Estate of" is noted on the return and the IRM directives is to include these entries and they were omitted from the name line, code as an accuracy error. For Letter Error if the filing status was married filing joint (MF 2) and one spouse is deceased, code an accuracy error if the letter is not addressed to the surviving spouse.

Address Review for Letter Error, Refund Error, and Notice Error

  1. Common abbreviations for "Street" , "Avenue" , "Road" , etc. are acceptable. Do not code as a defect.

  2. Abbreviation of the literal "Apartment" as "Apt." is acceptable. Do not code as a defect.

  3. If you find a discrepancy in designations of "St." , "Rd." , "Ave." , (e.g., return shows "123 7th St." , notice shows "123 7th Rd." ) perform research to determine whether both addresses exist. For the example above, if research indicates that both 7th St. and 7th Rd. exist in the taxpayer's city, code an Accuracy defect. Otherwise, code a Professionalism defect. See Exhibit 3.0.275-19. If you have access to the Internet, you can access a Post Office ZIP Code look-up screen at https://tools.usps.com/go/ZipLookupAction!input.action. If you do not have access to the Internet, you can use Post Office ZIP Code books to conduct research.

    Note:

    Do not enter the full name of a taxpayer when the name line was incorrect. In the DCI comment field state, name line incorrect.

  4. Incorrect street number is always an Accuracy defect.

  5. Incorrect street name (other than minor spelling errors) is an Accuracy defect. Minor spelling errors are Professionalism defects.

  6. Incorrect or omitted apartment or suite number is an Accuracy defect (a defect that results from accessing the Entity Index File is charged as a systemic accuracy defect).

  7. Street address' compass sign incorrect or omitted, code as an Accuracy defect.

  8. Incorrect city (other than minor spelling errors) is an Accuracy defect. Minor spelling errors are Professionalism defects.

  9. Incorrect state is an Accuracy defect.

  10. Incorrect ZIP code is an Accuracy defect.

FINALIST - United States Postal Service (USPS) Standardization Software

  1. The FINALIST program is standardization software used by the USPS to ensure addresses are valid and correct. FINALIST knows if building numbers are valid.

  2. FINALIST is used to ensure the IRS’s outgoing mail, notices, tax packages, etc. comply with the USPS address standards.

  3. An address that is entered into IDRS and does not meet the USPS standards WILL NOT update and/or post with the input address.

  4. The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to thirteen.

  5. FINALIST will also abbreviate street names. However, a list of abbreviations used by FINALIST is not available.

  6. If you see an address that appears to be an abbreviation of the street name or city name, you can research the USPS Zip Code look up screen at https://tools.usps.com/go/ZipLookupAction!input.action to see if the abbreviation is accepted by the USPS.

Letter Error Rate Business Results Measure

  1. The purpose of the Letter Error Rate Business Results Measure is to determine the percentage of incorrect letters issued to taxpayers by Submission Processing employees.

Definition of Letter Error Rate

  1. Letter Error Rate is defined as the percentage of incorrect letters issued to taxpayers by Submission Processing employees. The number of letters that are inaccurate, unprofessional, or unclear is divided by the sample size to determine the percentage of inaccurate letters.

    Note:

    A review of the envelope is included on RAIVS letters, 3296C letter and certain Entity and C&E letters.

    Note:

    Professionalism defects are not included in the reports shared with the W&I or SB/SE Commissioner. For FY 2004, W&I continued to include systemic defects in the rates reported on the Commissioner’s Monthly Report (CMR). For SB/SE, systemic defects are not included in the rates reported on the CMR. Letters are reviewed to identify any errors caused by the IRS, including systemic errors. The completeness of letters (does the letter address all issues related to the source document) as well as the professionalism and clarity of the language is analyzed.

Sample Instructions for Letter Error Rate

  1. The Letter Error Rate program uses a daily sampling of letters to determine a monthly error rate. The sample includes all IDRS letters and some non-IDRS letters issued by Submission Processing employees.

  2. The Letter Error Rate sample is automated by the CRX program. Access to Control-D reports is necessary to obtain the CRX and CRXR Sample Reports. Contact your functional coordinator if you do not have access to Control-D.

    Note:

    The CRXR reports which contain cases for sample is restricted. If you need access see your manager.

  3. The following reports are posted to Control-D daily and provide the Sample Reports and a Summary Report:

    • 01S45 (IMF Letter Detail Report)

    • 01S46 (BMF Letter Detail Report)

    • 01S44 (IMF and BMF Submission Processing Letter Controls)

    • CRX01S4X - IMF Sample Letters

    • CRX01S5X - BMF Sample Letters

      Note:

      The reports shown could be entitled somewhat different or have additional indicators in front of the designator for each report.

  4. Paper copies of the selected letters are printed and provided to the Improvement Team daily as part of the CRX run. CRX01S14 produces copies of the IMF letters, and CRX01S15 produces copies of the BMF letters. Coordinate the delivery of these letters to the Improvement Team with your local Enterprise Help Desk (IT) function.

  5. After obtaining the copies of the selected letters, an Improvement Team employee must visit the appropriate Submission Processing Center teams to find the associated return or case file. See IRM 3.0.275.4.3.1 if you cannot locate the document in the originating area.

  6. Photocopy the return or case file for use in the review process.

    Note:

    The original return or case file must always be maintained in the appropriate area.

Letter Error Rate Sampling of Non-IDRS Letters
  1. The CRX sample program will only select IDRS letters. While Submission Processing functions also send other types of non-IDRS correspondence, Improvement Team will only sample the following non-IDRS correspondence:

    • Form/Correspondence that is used to send a return back to the taxpayer (e.g., Form 3531, Request for Missing Information or Papers to Complete Return). These are usually referred to as "Greenies" .

    • Responses to Requesters for Tax Returns (e.g., Auto-Transcript letters/Word documents/other local letters). These are used by Return And Income Verification Services (RAIVS).

    • Tax return/return information that is sent back to the taxpayer by Receipt and Control (R&C).

  2. Greenies, RAIVS, Machine Services (Cincinnati Service Center (CSPC) only), IRS Individual Taxpayer Identification (ITIN) (Austin Service Center (AUSPC) only), and R&C cases must be manually sampled each day, and the functional area must make all Greenies, RAIVS, Machine Services (CSPC only), ITIN (AUSPC only), and R&C cases available for sampling. See IRM 3.0.275.1.5. for sampling guidelines.

  3. Improvement Team employees will manually sample the Greenies, RAIVS, Machine Services (CSPC only), ITIN (AUSPC only), and R&C using the skip interval provided by Headquarters. The following IRMs will assist you in determining the Greenies to review. In addition, see the "Business Results Measures for Submission Processing Functions," Job Aid 6804-701, for Letter Error, for a list of Non-IDRS letters.
    For IMF Greenies, see the following IRMs:

    • IRM 3.11.3, Individual Income Tax Return

    • IRM 3.11.6, Data Processing (DP) Tax Adjustments (Form 8009-A)


    For BMF Greenies, see the following IRMs:

    • IRM 3.11.13, Employment Tax Returns (Form 6800-SP and Notice 695)

    • IRM 3.11.14, Income Tax Returns for Estates and Trusts (Form 1041, Form 1041-QFT, Form 1040-N and Form 6800)

    • IRM 3.11.15, Return for Partnership Income

    • IRM 3.11.16, Corporate Income Tax Return (Form 6800)

    • IRM 3.11.17, Processing Form 1120X and Form 8842 (Form 6800)

    • IRM 3.11.23, Excise Tax Return (Form 6800)

    • IRM 3.11.106, Estate and Gift Tax Returns (Form 6800)

    • IRM 3.11.154, Unemployment Tax Returns, (Form 6800-SP)

    • IRM 3.11.212, Applications for Extension of Time to File, (Form 6401 and Form 6513)

    • IRM 3.11.213, Form 1066, U.S. REMIC Tax Return, (Notice 695)

    • IRM 3.11.249, Processing Form 8752, (Form 6800)


    For review of Receipt and Control (R&C) see:

    • IRM 3.8.44, Campus Deposit Activity

  4. Photocopy all Greenies, RAIVS, Machine Services (CSPC only), ITIN (AUSPC only), and R&C supporting documents. The original correspondence form and return must remain in the functional area for mailing.

Case Review Instructions for Letter Error Rate

  1. Secure all research material before beginning case review. Due to the use of the CRX program for the automated sample, Command Codes QRIND and RVIEW can be used for Letter Error Rate review if the review is performed within two days from input. Use Control-D to determine if the letter was deleted or a duplicate by selecting from the Project List either CRX (two reports "Daily Letter Error List" or "Daily Delete Request List" ) or End of Day (EOD) (two reports "Duplication Transaction" or "Quality Review Index Transaction" ). In addition, use CC LLIST to see if a letter was created earlier in the day. Use Command Codes INOLE, ENMOD, TXMOD, IMFOL, BMFOL, BRTVU, and RTVUE when reviewing the taxpayer's letter and account, if needed.

  2. The Employee User Portal (EUP) can be used to view MEF returns required to review a notice or letter. See IRM 3.0.275.1.4 for additional information on EUP.

  3. Review each sample letter against the source document and research that you have obtained. See IRM 3.0.275.2 and IRM 3.0.275.3 for Entity and Address Reviews. Determine the IRM requirements and procedures for the case you are reviewing using the following IRMs:

    • IRM 1.10.1, IRS Correspondence Manual

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.11.1, IDRS Correspondence System

    • IRM 3.5.20, Processing Requests for Tax Return/Return Information (RAIVS)

    • IRM 3.8.44, Campus Deposit Activity

    • IRM 3.8.45, Manual Deposit Process

    • IRM 3.11 Series, Returns and Documents Analysis

    • IRM 3.12 Series, Error Resolution

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.13.5, IMF Account Numbers

    • IRM 3.17 Series, Accounting and Data Control

    • IRM 13.1 Series, Taxpayer Advocate Case Procedures

    • IRM 13.1.3, Definition of Terms/Use of Abbreviations

    • IRM 21.3.3, Incoming and Outgoing Correspondence/Letters

    • IRM Servicewide Electronic Research Program (SERP)

  4. Refer to the IDRS Letter Correspondex to determine if the appropriate letter and selected paragraphs were used.

  5. Review each RAIVS return envelope against the source document (Form 4506, "Request for Copy of Tax Return" or Form 4506T, "Request for Transcript of Tax Return" ). Compare the address of the envelope against lines 1a, 2a, and 3, of Form 4506/4506T for correctness. Taxpayers may also use line 5 to have the information mailed to a third party.

Source Documents for Letter Error Rate
  1. In some instances the source document or return associated with the sample letter will not be available when you search for it in the functional area. If this is the case, you must attempt to obtain it for review.

  2. If there is no Document Locator Number (DLN) or if the document is in Suspense Team, search the suspense file or appropriate team for the source document. Continue to search periodically for 25 days. If the return is unavailable after 25 days, review the letter following the procedures in IRM 3.0.275.4.4.3 and enter a check mark in the Case File Unavailable field of the Letter Error Rate Data Collection Instrument (DCI).

  3. For source documents sent to Files, prepare a document request following local procedures. If the charge-out indicates it is charged out to another area, contact the area to get a copy of the document. If the charge-out indicates document not in file, review IDRS to see if the DLN was re-numbered. If, after thorough research you cannot locate document and at least 10 days have passed, input a second request using CC ESTABD "V." If document is not received within 15 days, review the letter following the procedures in IRM 3.0.275.4.4.3 and enter a check mark in the Case File Unavailable field of the Letter Error Rate Data Collection Instrument (DCI).

  4. For letters associated with an E-File return, utilize IDRS command codes RTVUE, TRDBV or other Electronic means. .

  5. To ensure a thorough review of all sample cases, secure source documents as often as possible. In cases where you are sure that the source document cannot be secured (e.g., case backup information has been destroyed), it is not necessary to follow the request procedures shown above.

  6. If an erroneous letter (Accuracy error only) needs to be deleted, input Command Code (CC) RVIEW (response in bottom left hand corner is CC QRACN). This CC will allow you to input a number that will delete the letter. See IRM 2.4.5, IDRS Terminal Input Command Codes QRADD, QRADDO, QRNCH, QRNCHG, RVIEW, QRACN, and QRIND for the Quality Review System.

Data Input Instructions for Letter Error Rate

  1. Input the results of your case review into the SMART database.

Letter Error Rate Data Input General Instructions
  1. Be as specific as possible when identifying an error. See Exhibit 3.0.275-3. for a check list for Entity, Letters, Greenies, RAIVS and Receipt and Control (R&C). Only three errors can be coded per letter. Information on additional errors notated in the comments field.

  2. For Systemic Errors, "Greenies," RAIVS, or R&C review, use the following Who Code definers:

    • 000 - Systemic

    • 001 - Greenies

    • 002 - RAIVS

    • 003 - R&C

    • 004 - ITIN (AUSPC only)

    • 005- MSU (Machine Services) (CSPC only)

      Note:

      The appropriate code 001, 002, 003, 004 or 005 must also be entered in the Team Number field.

  3. The CRX system will select letters generated by IDRS numbers 100 through 299. The ranges for each operation are:

    • Accounting Operation - IDRS Number Range 106-119

    • Director, Planning and Analysis, and Site Coordinator - 100-105

    • Receipt and Control Operation - IDRS Number Range 160–199

    • Data Conversion Operations - IDRS Number Range 200-219

    • Document Perfection Operation - IDRS Number Range 220–249

    • Input Correction Operation - IDRS Number Range 250–279

    • Statistics of Income Operation - CSPC and OSPC only - IDRS Number Range 280–289

    • ITIN Operation - AUSPC only - IDRS Number Range 280–289

  4. If the letter you are reviewing was input by a Clerical Team but initiated by another team, see IRM 3.0.275.4.4.2. for RPT (Responsible Prior Team). This field will identify the team responsible for any error other than a clerical input error (for example, an incorrect or incomplete entry on the correspondence action sheet).

    Note:

    Headquarters does not require a RPT to be coded if there was no error on the letter. However, a decision could be made locally to code the RPT at all times for analytical purposes.

  5. If an incorrect IRS Received Date or Request Date is referenced in the Correspondence Received Date field, and the correct and incorrect dates are not greater than five calendar days apart, a non-systemic professionalism error will be charged.

  6. If during your review a Systemic Professionalism error was identified, do not code. However, a Problem Reporting Template (PRT) will be required for every systemic professionalism error. Check the Systemic Chart to see if the error has been reported previously. If not, complete the PRT and submit it to Headquarters. The PRT's will be monitored by the Headquarter Measure owner until correction. See IRM 3.0.275.1.8, Problem Reporting Instructions for Notice and Letter Error Rate, on completing a PRT.

  7. Code Letter errors in the following priority:

    1. Team Accuracy

    2. RPT Accuracy

    3. Systemic Accuracy

    4. Team Professionalism

    5. RPT Professionalism

    • Note:

      If a letter is not necessary, use the following coding: WHAT Code 107, WHERE Code 209, and TYPE A. Do not code additional defect.

  8. If, during your review, you identify that another functional area should have corresponded and did not, do not code for a defect but initiate feedback to the functional area.

Letter Error Rate Data Collection Instrument (DCI) Input Instructions
  1. Open the Business Results Measures Home Page:
    http://balmeas.enterprise.irs.gov.

  2. Click on Letter Error Rate Tab.

  3. Letter Error Rate Home Page is shown.
    http://balmeas.enterprise.irs.gov/LtrErr/LtrErrHome.asp .

  4. Click on DCI Input Form Key and follow the "Business Results Measures for Submission Processing Functions, Job Aid," (Catalog Number 37697B, Training 6804-701) page 2-25, step 4. To obtain a copy of the Job Aid go to: http://coursebooks.enterprise.irs.gov . On the left hand side under Operation place cursor over Cross Functional, several selections appear, select Business Measures which will bring up the Training 6804-701, click on the training number.

  5. See Exhibit 3.0.275-3 and Exhibit 3.0.275-4. These exhibits contain a check list, and What and Where Codes.

Letter Error Rate Input Instructions when Source Document is not Available
  1. After following the instructions in IRM 3.0.275.4.3.1 for requesting and searching for source documents, use the following instructions when you cannot obtain the source document.

    1. Use the appropriate Command Code to review the entity portion of the letter for misspelling.

    2. Enter a check mark in the Case File Unavailable field.

    3. Review the letter content for the following factors.

      Note:

      There may be technical issues for which the source document is not necessary (e.g., DLN and Master File Transaction (MFT)).

      Letter Error Rate Review Items

      Note:

      Use only if the source document cannot be located.

      Contact Point and Telephone Number Provided
      Timeframes
      Attachments/Enclosures
      Authorized Disclosure
      Clear and Appropriate Language
      Capitalization
      Grammar
      Punctuation
      Salutation
      Spacing
      Spelling/Typographical
      Closing

      Note:

      Code and Edit is required to verify the Entity information on the return is complete and legible.

Reports for Letter Error Rate

  1. Two sets of reports are available for Letter Error Rate (National and Service Center).

  2. The Service Center Reports are:

    1. List of Reviews by Review Date

    2. List of Reviews by Review Date with Monthly Subtotals by Sample Date

    3. List of Reviews by Sample Date with Summary of Accuracy and Professionalism Errors

    4. List of Reviews by Sample Date

    5. List of Errors by Sample Date

    6. Letter Error Rate Report by Operations (All Errors)

    7. Letter Error Rate Report by SPC (All Errors)

    8. Letter Error Rate National Report

    9. Letter Error Rate Report by Operations (Non-Systemic Accuracy Errors)

    10. Letter Error Rate Report by SPC (Non-Systemic Accuracy Errors)

    11. Top 5 Error Report

    12. Top 5 Error Report by Operation

    13. Top 5 Error Report by WHAT and WHERE

    14. Letter Error Adhoc Query by Sample Date

    15. Letter Error Adhoc Query by Review Date

    16. List of Open Cases

    17. Letter Summary of Who, What, Where Report by Operations

    18. Letter Summary of Who, What, Where Report by SPC

    19. Letter Summary of Who, What, Where Report by RPT

    20. Letter Summary of Who, What, Where Report by Team

    21. Letter Summary of Accuracy and Professionalism Errors by Letter Type

    22. Letter Summary of IDRS Letter vs. Non-IDRS Letters

    23. Summary of Accuracy and Professionalism Errors by Operation

    24. Fiscal Year Weighted Error Rates by Campus

  3. The National Weighted Reports are:

    1. Letter Error Report — All Errors

    2. Letter Error Report — All Errors Except Systemic

    3. Letter Error Report — Accuracy Errors

    4. Letter Error Report — Non-Systemic Accuracy Errors Only

    5. Letter Error Report — Professionalism Errors

    6. Letter Error Report — Non-Systemic Professionalism Errors Only

    7. Letter Error Rate — Weighted Roll up

    8. Summary of Open Cases

    9. Fiscal Year Weighted Rates by Service Center

    10. Fiscal Year Weighted Rates — National, W&I and SB/SE

Deposit Error Rate Business Results Measure

  1. The purpose of the Deposit Error Rate Business Results Measure is to determine the number of inaccuracies created by the Submission Processing Center during remittance processing.

Definition of Deposit Error Rate

  1. Deposit Error Rate is defined as the percentage of errors made by the Submission Processing Center during remittance processing. These errors result in the inaccurate processing of deposits and may have a negative impact on the taxpayer.

Sample Instructions for Deposit Error Rate

  1. Improvement Team employee(s) will pull the sample from the deposit function. Generally, this would be after Extracting and prior to leaving Pre-Batch (before payment is perfected and input). Samples from the Field Offices and Lockbox can be pulled earlier in the process. It is important the sample reflects the entire universe of remittances processed.

    Note:

    This may require the Improvement Team employee(s) is available for multiple shifts. The Improvement Team must go to Receipt and Control as often as necessary to get samples from all mail drops. During peak periods, we request the Improvement Team make every effort to get samples from all mail deliveries, and all shifts, and to include the weekends, if possible. If the weekends are included, the daily sample should be reduced accordingly so as not to substantially exceed the total monthly sample size.

  2. The sampling mix is determined by an individual SPCs actual history of receipts by month. The W&I Headquarters analyst will supply annually, for each SPC, a monthly mix of eight samples (monthly sample size equals 168, divided by 21 work days) from the following areas: Remittance Processing System (R-RPS), Transport, Payment Perfection, Lockbox, Field Office, and Non-transport.

  3. Improvement Team employees will use the following procedures after the sample has been identified:

    1. When a case has been identified for the sample, mark the place from where the case was pulled. Ensure the case is returned to the original location.

    2. Photocopy all information needed to determine the application of the payments. Photocopy the remittance (check, money order, draft), all payment related source documents (voucher, bill, return, correspondence), and envelope, if applicable. Ensure that the copies are legible.

    3. Perfect any illegible data on the photocopies.

    4. If you discover the sample check is one of two or more remittances to be applied to the same source document (multiple remittance ), photocopy all remittances received. Indicate the check to be reviewed.

    5. Ensure the IRS received date is present. If not, annotate the received date on the photocopy.

    6. Ensure the case was reassembled correctly and the live document is returned to its original location as marked.

    7. If your sample includes using a sample plan, ensure work already counted and sampled is not recounted by placing a "Improvement Team Counted" placard on it or by another method of identification that does not alter the live work.

    8. Optional, attach a paper Data Collection Instrument (DCI) to each case and enter the deposit amount, sample date, and IRS received date on the paper DCI.

      Note:

      If a SPC chooses not to prepare a paper DCI and if an area wants a copy of the DCI, the SPC will print the DCI from the SMART database.

  4. Do not include the following in your Accuracy sample:

    • State forms with checks made out to IRS or United States Treasury

    • Unacceptable Payments (i.e.,, Savings Bonds, Credit Cards, etc.)

    • Non-negotiable checks

    • Voided checks

    • Completely blank check

  5. Each Submission Processing Center Deposit Accuracy Coordinator is responsible for setting up any necessary local procedures for obtaining sample documents. The Improvement Team employee(s) before accessing restricted areas in Receipt and Control, review security procedures. The Coordinator must review the availability of photocopy machines in the sampling area and make arrangements to provide additional photocopy facilities if they are needed. Improvement Team employee(s) may also require a workstation within Receipt and Control to complete their work.

Deposit Error Rate Inventory Control
  1. Within two days of the sample pull, enter the deposit amount, IRS received date (earliest date the payment was received at any IRS location), and sample date from the DCI into the SMART Database. When the case record is saved, a sequence number will be assigned. Annotate the sequence number at the top of the document or paper DCI. The case record will be held in suspense status (Case Status code "S" in the SMART database) pending final case review and input.

  2. File sample cases by sample date and DCI number until the payment transaction posts and the case file can be reviewed.

Case Review Instructions for Deposit Error Rate

  1. You may choose to begin your initial review (including a print of IDRS) when creating the DCI. One to two weeks later, review IDRS to determine if the payment was applied and posted correctly using CFOL command codes. Remittance Transaction Research (RTR) may also be utilized. If the payment is found on the correct account with no errors, close the case as perfect.

    Note:

    Beginning with cases sampled October 1, 2005, the following changes have been approved for coding deposit error rate cases:
    a. IRS Received Date
    If a payment posted with an incorrect IRS Received Date and the correct and incorrect dates are timely, and are not greater than five calendar days apart, do not code a defect. If, during a case review, it is obvious that the resulting incorrect date will cause a negative taxpayer impact, code a defect even if it fits the above criteria. Written feedback must be supplied to the Operation involved, and enter a feedback comment on the Data Collection Instrument (DCI). Please note:

    Note:

    When considering timeliness in the preceding statement, grace periods of seven days from the return due date of an original return or extension should be considered.

    Note:

    Also consider the grace period from the 23C date of a notice if the account status is 19, 20, 21, 56, or 58. See IRM 21.5.1.4.2.5 Account Resolution - General Adjustments Received Date - Grace Periods to determine the grace period if the balance due is less than or more than $100,000.00.

    b. Unpostables
    At the time the case is being coded (approximately two weeks from the sample date), if a remittance has gone Unpostable, wait for the resolution. If the payment posts to Master File correctly, and there is no negative taxpayer impact, do not code a defect. Written feedback must be supplied to the Operation involved, and a feedback comment entered on the DCI. If the payment post the Master File incorrectly, code a defect, capturing both the original Operation and Unpostables. If, after communicating with the Unpostables Unit, the case has not been resolved in time to enter the data into SMART, code a defect to the original Operation if an internal error has been made.

    c. Transaction Code (TC) 570
    If during your review, the tax module shows the payment and adjustment posting in the same cycle and no TC 570 is shown, due to an even balance or balance due, do not charge an error. In these type of cases the computer drops the TC 570 from posting.
    d. Money Amount
    If a payment posted with an incorrect money amount of less than $1, do not code a defect. If, during a case review, it is obvious that the resulting incorrect money amount will cause a negative taxpayer impact, code a defect even if it fits the above criteria. Written feedback must be supplied to the Operation involved, and enter a feedback comment on the Data Collection Instrument (DCI).

  2. See IRM 3.8.45, Manual Deposit Process and IRM 3.8.44, Campus Deposit Activity, are the major source of processing procedures for remittances. In addition, check with the functional areas in the Receipt and Control Operation for any local procedures and additional processing guidelines. However, review the Accuracy of the sample case based solely on IRM guidelines (IRM 3.0.275.1.9).

  3. The Extraction Function in Receipt and Control Operation performs the initial sort in "perfect" and "imperfect" remittance categories. You will determine the payment processing data for coding purposes based on the information contained in IRM 3.10.72, Extracting, Sorting, and Numbering.

  4. You may need to research the General Fund Remittance Recap Report or the Residual Remittance Processing System (RRPS) by deposit date to verify that the payment was applied to the correct Treasury Account Symbol (TAS). See IRM 3.17.63, Interim Revenue Accounting Control System, for a complete listing of Treasury Account Symbols.

  5. Thoroughly examine the copy of the remittance and all associated posting documents to determine the Accuracy of processing each sample case. Base your identification of processing errors on the taxpayer's intent and IRM procedural instructions.

    Note:

    When evaluating the transaction code....
    If your sample does not include a copy of a return or an indication that there was a return, AND it is not obvious there would be a negative impact on the taxpayer, consider either a TC 610 or a TC 670 as being correct.

  6. You may also identify and record taxpayer errors that contribute to misapplied payments. However, these errors will not be used to calculate your SPCs error rate. If a sample case contains both IRS and taxpayer errors, always code IRS errors first. Code the DCI for all errors you identified during case review.

  7. Deposit Error Rate Site Coordinators must develop local procedures for Improvement Team access to research records that are maintained in the Accounting functions.

  8. See Exhibit 3.0.275-5. for a series of "Frequently Asked Questions" about the Deposit Error Rate review process.

Deposit Error Rate Review of Revenue Receipts
  1. Remittances received and deposited into the Revenue Receipts fund consist of the following items:

    • Internal Revenue taxes, penalties, interest and costs, assessed or assessable against taxpayers.

    • Payments on accepted Offers-in-Compromise.

    • Payment of court fines, court costs forfeitures, penalties incident to or imposed for violation of Internal Regional laws, from the redemption of property acquired by the government.

    • Receipts from consummated sales of acquired property.

  2. Access IDRS and use the following Command Codes to determine the posting of each sample case.

    Research Command Codes for TIN

    If... Then...
    No Taxpayer Identification Number (TIN) is present, Use Command Codes NAMEI, NAMEB, NAMEE, or NAMES to obtain the TIN
    TIN is found, Use any of the following CCs to locate the payments: IMFOLI, IMFOLP, BMFOLI, BMFOLP and TXMODA. If payment found, go to "Payment is found" in the "IF" column.

    Note:

    IMFOLP and BMFOLP displays payment transactions within a specified date range. The input format is IMFOLP000-00-0000 YYYYMM YYYYMM or BMFOLP00–0000000 YYYYMM YYYYMM

    TIN is not found, Verify if the case was forwarded to the Unidentified Function.
    TIN is present and no intended tax period can be determined, Use Command Codes BMFOLI, IMFOLI, TXMOD and SUMRY to locate debit modules. Research all modules to locate the payment.
    Payment applied to earliest Collection Statute Expiration Date (CSED), Go to, "Payment is Found" in the "IF" column.
    Payment not applied to earliest CSED, Go to, "Payment is found" in the "IF" column.
    TIN and intended tax period can be determined by remittance and/or posting document, Use Command Codes BMFOLT, IMFOLT, SUMRY, and TXMODA to verify the Accuracy of the payment posting information. Go to, "Payment is found" in the "IF" column.
    Payment is found, Determine taxpayer intent and verify Accuracy of payment posting information (correct account, MFT, tax period, transaction code, etc.).
    Payment posting information is correct, Code the DCI and file the case.
    Payment posting information is incorrect, Code the DCI, prepare the Communication Record and route the case to the appropriate area.
    Payment is not found, (i.e., payment has not posted to Master File), Research RTR Subsystem and use Command Codes UPTIN, URINQ, and SCFTR to search for the payment.
    Payment found on RTR Subsystem, Go to "Payment is found" in the "IF" column.
    Payment found on CC UPTIN, Review IRM 3.12.32, General Unpostables to determine the cause of the unpostable condition and go to, "Payment is found" in the "IF" column.
    Payment found on URINQ, Unidentified (URF) payment, Review to determine if IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF) and IRM 3.8.44, Campus Deposit Activity were followed for accurate placement in the URF account and go to, "Payment is found" in the "IF" column.
    Payment found on SCFTR, Review the appropriate IRMs to determine the cause and go to, "Payment is found" in the "IF" column.
    Payment not found on RTR Subsystem, UPTIN, URINQ or SCFTR, Give the case to the Deposit Coordinator, or the Receipt and Control manager, to locate the payment. If the payment is not found, and all research has been exhausted, delete the case from the sample.

     

Deposit Error Rate Review of Automated Non-Master File (ANMF) Payments
  1. Access the ANMF system to determine the posting of the NMF payment. NMF accounts generally have Social Security Numbers (SSNs) or Employee Identification Number (EINs) ending with the letter "N" .

  2. To review NMF payments you must access the ANMF system. See Exhibit 3.0.275-6. for types of NMF accounts.

    Payment Posting
    If... Then...
    Payment is found, Determine the taxpayer's intent and verify the Accuracy of the payment posting information, such as, correct: Taxpayer's account, MFT Code, Tax Period, and Transaction Code.
    Payment posting information correct, Code the DCI and file the case.
    Payment posting information incorrect, Code the DCI Code, prepare the Communication Record and route the case to the appropriate area.
    Payment is not found, Request research of the ANMF Unpostable listing. Access IDRS for possible misapplication of the payment to a Master File account.
    Payment not found on ANMF unpostable listings, Route the case to Hard Core Payment Tracer Function and delete the case from the sample.
Deposit Error Rate Review of General Fund Payments
  1. Examples of General Fund Payments are user fees, photocopy fees, conscience fund payments, and payments to the public debt.

  2. Access RTR to verify payment processing data and to determine the payment deposit date. Research the RRPS General Fund Remittance Recap Report by deposit date to verify that the payment was applied to the correct Treasury Account Symbol (TAS). See IRM 3.17.63.2.6, Accounting and Data Control, Redesign Revenue Accounting Control System, for a complete listing of Treasury Account Symbols.

    Note:

    Employee Plans/Exempt Organization (EP/EO) User Fee payments can be verified solely by the payment DLN. Access RTR to verify the payment data. A user Fee DLN can be recognized as Document Code 57 with the Blocking Series 50X. Installment Agreement User fees are also General Fund, but can be verified on the Master File under MFT 55 for IMF and MFT 13 for BMF.

Deposit Error Rate Review of Deposit Fund Payments
  1. Examples of Deposit Fund payments are Offer in Compromise and Sale of Seized Property.

  2. Follow the procedures in Research the RRPS Deposit Fund Remittance Recap Report. See IRM 3.0.275.5.3.3.

  3. Follow the procedures in Deposit Error Rate Review of Revenue Receipts. See IRM 3.0.275.5.3.1.

Deposit Error Rate Review of Refund Repayments
  1. Remittance received and deposited into the Repayments to Refund Appropriations funds are:

    • Recoveries of erroneous, duplicate, or overpaid refunds

    • Fraudulently negotiated checks

  2. Access IDRS to verify proper application of the payment. Refund repayments post with Transaction Code 720 and Document Code 45.

  3. Follow the procedures in Revenue Receipts payments.

Deposit Error Rate Measure Data Input Instructions

  1. To open the Home Page for Deposits: http://balmeas.enterprise.irs.gov/DepError/DepErrorHome.asp .

    Note:

    Enter the information based upon the taxpayer's intent.

  2. Select the "DCI input form" action from the main Deposit Error Rate menu and enter "search record" and the DCI number. Enter the information from either the paper DCI or case in the corresponding fields of the database screen. Edit any of the three original input fields as needed.

  3. Enter the following case identification fields for every sample case:

    1. DCI number: Generated by the database from the Inventory Control input.

    2. Campus: Generated

    3. Site: This field will generate from your user login.

    4. Case Type: Generated by the database from the Inventory Control input.

    5. Review Date: Generated by the database from the Inventory Control input.

    6. Reviewer ID (IDRS Profile #): Initial entry of IDRS Employee Number is required. The field will generate on second and subsequent case records.

    7. Sample Date:"Verify" the date the sample was pulled. If incorrect, correct.

    8. Deposit Amount:"Verify" the amount of the remittance. If incorrect, correct.

    9. DLN: Enter the 14 digit payment DLN shown on the source document, without dashes.

    10. Deposit Date: Generated from the Julian Date in the DLN.

    11. IRS Received Date: Enter the earliest date the payment was received at any IRS location. Refer to IRM 3.8.44, Campus Deposit Activity. After review, see IRM 3.0.275.5.3. (1) note before finalizing.

    12. Negative Taxpayer Impact: All accurate cases must be coded "N" for no. This is the default if no entry is made. On all inaccurate cases, determine if the error, had it not been pulled as part of the sample, would have caused a negative impact to the taxpayer. If so, code with a "Y" or yes. This would include, but would not be limited to unnecessary notice or letter, incorrect penalty and/or interest assessed, erroneous or delayed refund, or anything else that would give the taxpayer incorrect information or cause them to contact the IRS when they normally would not have. Correction of the error during or after the coding process should not change this determination.

    13. Master File: From the drop down menu, select the Master File to which the payment was posted. Refer to Document 6209, IRS Processing Codes and Information, for further explanation.

      Deposit Error Rate Master File Entries

      • IMF
      • BMF
      IRAF (Individual Retirement Account File)
      NMF
      URF
      Other

       

    14. MFT: From the drop down menu, select the MFT code used to post the payment. Refer to Document 6209, IRS Processing Codes and Information, for further explanation.

    15. Tax Period: Enter using YYYYMM format. Enter "000000" for URF, General, and Deposit Fund cases.

    16. Deposit Transaction Code: From the drop down menu, select the Transaction Code used to post the payment. Enter "000" for URF, General, and Deposit Fund cases.

      Note:

      When evaluating the transaction code...
      If your sample does not include a copy of a return or an indication that there was a return, AND it is not obvious there would be a negative impact on the taxpayer, consider either a TC 610 or a TC 670 as being correct.

    17. Remittance Posting Cycle: Enter the cycle the payment posted using YYYYCC format.

      Remittance Posting Cycle Entries
      Unpostable: Enter the cycle the case unposted
      Master File: Enter the payment posting cycle
      Deposit/General Fund and URF: Enter the deposit date cycle
    18. Time (HH:MM): Reserved

    19. Type of Posting Document: Select one of the following from the drop down menu.

      Deposit Error Rate Type of Posting Document Entries
      Return
      Voucher
      Bill
      Envelope
      IRS Letter
      Extension
      Check Only
      Taxpayer Letter
      Form 8109
      Other
    20. Postmark Date: Enter the postmark date on the envelope (when available) using MM/DD/YY format.

    21. Payment Processing Data: Select "Perfect" or "Imperfect" from the drop down menu. Base your entry on IRM 3.10.72, Receiving, Extracting, and Sorting.

    22. Deposit Method: Refer to IRM 3.8.44, Campus Deposit Activity and IRM 3.8.45, Manual Deposit Process, for identification of exception processing. Enter one of the following from the drop down menu.

      Deposit Error Rate Deposit Method Entries
      Command Code PAYMT
      Exception Processing
      RRPS
    23. Origin of Payment: Enter one of the following from the drop down menu: D.O., Lockbox, or Site.

    24. Payment Category: Refer to IRM 3.17.63, Redesign Revenue Accounting Control System. Enter one of the following from the drop down menu.

      Payment Category Entries
      Revenue Receipts
      Deposit Fund
      General Fund
      Refund Repayment
      Split Payment
      Multiple Payment
    25. Accurate: Enter "Y" if you found no errors during case review. Enter "N" if you found error.

      Note:

      If the Accurate field is coded "Y," stop here. If Accurate is coded "N," continue.

    26. Internal Error: Enter "Y" if you found IRS errors during case review. Enter "N" if you found a taxpayer or field office error. "N" coded records will not count against the center error rate.

      Note:

      Reviewed Not a data entry field. Upon initial case record entry, this field will display "N." It will automatically change to a "Y" two calendar months from the review date. A "Y" in this field disables the ability to edit the case record.

      Note:

      Case Status Not a data entry field. Upon initial case record entry, this field will display "S." It will automatically change to a "C" after the edit function has been completed.

  4. Enter the following error identification fields only if you have identified an error on the sample case:

    1. Who Code: Identify where the error occurred by selecting the appropriate Who Code from the drop down menu. For a list of valid Who Codes, see Exhibit 3.0.275-7.

      Note:

      Data Conversion or Receipt and Control (Who Code 7) to be used when, after research and managerial approval, the area responsible cannot be determined. This Who Code is not restricted for use only with received date defects.

    2. What Code: Enter a defect description by selecting the appropriate What Code from the drop down menu. For a list of valid What Codes, see Exhibit 3.0.275-7.

      Note:

      There are three Who/What combinations available for each case record.

    3. Comments: Use this field to record any additional information or comments relating to the review. An entry in this field is required when Who Codes 1 or 5 are used.

      Note:

      Do not enter sensitive taxpayer data in the Comments field. Never enter a TIN, and do not enter a taxpayer's full name or address.

      Note:

      Beginning immediately, if your sample is either an Automated Collection System (ACS) or Offer in Compromise (OIC) deposit, please identify it as such in the comments field of the DCI. If you put either ACS or OIC as the first three characters in comments it will be easier to identify in a query.

  5. When all of the case information is entered and verified, select the "Update" button.

  6. When the "Update" button is pressed, the DCI record will undergo validity checks. If the record fails any validity check, you will see an error message and your cursor will be placed in the invalid field. Correct your entry and select the "Update" button again. This process will continue until all validity checks are passed.

  7. When a valid DCI is submitted to the database, the status code of the case record will change to "Closed" (C).

Reports for Deposit Error Rate

  1. Two sets of reports are available for Deposit Error Rate, National and Service Center.

  2. The National Reports are:

    1. Non-Lockbox:

      Combined - Period and Cumulative Combined

      Deposit Error Roll-up Report

      By Service Center - Period and Cumulative Data

      Grouped by IMF/BMF - Period and Cumulative Data

  3. The Service Center Reports are:

    1. Raw Error Rate Quality Rpt by Review Dt

    2. Raw Error Rate Quality Rpt by Sample Dt

    3. Top 5 What Codes Rpt by Sample Date

    4. Top 5 What Codes Rpt by Review Date

    5. Top 5 Who Codes Rpt by Sample Date

    6. Top 5 Who Codes Rpt by Review Date

    7. Who/What Rpt by Sample Date

    8. Who/What Rpt by Sample Date (with cases)

    9. Who/What Rpt by Review Date (with cases)

    10. Who/What Rpt with Comments

    11. List Cases by Sample Date

    12. Adhoc Summary Report (consolidated summaries)

Deposit Error Rate Raw Error Rate Quality Report
  1. These reports provide the total errors and accuracy rate by review date or sample date and for a selected range of dates. The Master File categories are IMF, BMF and URF. The report displays the Master File, number of cases reviewed, total number in error, internal error count, error rate, and accuracy rate. The volume of errors determines the quality rates.

    Note:

    A remittance that is corrected by Unpostables, and creates no negative taxpayer impact, will be coded as an accurate case. Provide detailed and timely feedback to the remittance processing functional area that created the unpostable condition. This situation must be documented in the comments field on the SMART database.

Deposit Error Rate Top 5 What and Top 5 Who Codes Report
  1. These reports provide a list of the Top 5 What Codes or the Top 5 Who Codes, number of errors and percentage of errors for a selected range of dates. The data appears in a table format.

Deposit Error Rate Summary Reports
  1. These reports enable the user to query information by entering the desired selection into a variety of parameters. The information may be selected by month, fiscal year or a specific date range. A date type of either the sample date, review date, IRS received date, deposit date or postmark date is selected. The user determines which data is to be retrieved by the query. The parameters include, but are not limited to, Case Status Accurate, Internal Error and Site.

Refund Timeliness and Error Rate Measures

  1. The Refund Timeliness and Error Rate (RT&E) Business Results Measure program provides us with the ability to assess the timeliness and Accuracy of refunds that are generated from current year paper IMF returns.

    Note:

    E-file returns are not included in this measure.

Definition of Refund Timeliness

  1. Refund Timeliness is defined as the percentage of refunds from current year Form 1040 family paper returns issued in 40 days or less.

  2. Timeliness is measured using the number of days from two days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we subtract two days from the IRS received date to approximate the date the return was mailed. For paper refund checks, we assume the taxpayer receives their refund the day after the Refund Pay Date shown on the taxpayer's Master File account. For direct deposit refunds, the taxpayer received their refund on the Refund Pay Date. For paper checks, the Refund Pay Date is 6 business days after the return posts to Master File. For direct deposit, the Refund Pay Date is 4 business days after the return posts to Master File.

Definition of Refund Error Rate

  1. Refund Error Rate is defined as the percentage of current year Form 1040 family paper returns that have an error in the entity portion or in the refund amount. "Systemic" errors (those that are caused by IRS systems) are counted as an error.

Sample Instructions for Refund Timeliness and Error Rate

  1. Samples are generated for Refund Timeliness and Error Rate (RT&E) review through a system of automated Generalized Mainline Framework (GMF) runs at Martinsburg and Tennessee Computing Centers. The sample is generated once a week, and output files are sent to the Submission Processing Center. These runs also automate document and Master File transcript requests. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

  2. If you discover problems with the sampling runs, report the problems on KISAM following local procedures.

Refund Timeliness and Error Rate Sample Size/Skip Interval
  1. Download the RT&E Skip Calculator from the Submission Processing web page, under Business Results Measures/Refund Timeliness and Error Rate.

  2. Before using the skip calculator, you will need two pieces of information:

    1. See Document 6209, IRS Processing Codes and Information, to determine the correct week ending dates to use for the specific sample month.

    2. Using the PCB0540 report from Control-D, extract the total projected volume for the sample month (as shown on the Submission Processing web site under RT&E, Exhibit 1) for function 230, organization code 35000, for programs 4311X, 4411X, and 4713X.

    Note:

    X refers to:

    • Timely filed returns (43110, 44110, and 47130 at most centers)

    • Delinquent returns (43111, 44111, and 47131 at most centers)

    • Bypass returns (47136)

    Do NOT use X because that is a summary count which includes prior years and those should not be included in the sample.

  3. Enter the total into the Skip Calculator. Send a copy of the calculator to the designated Headquarters Analyst by the 20th calendar day of the month preceding the sample month.

  4. The Headquarter analyst will consolidate the information from all centers and forward the skip intervals to the GMF Schedulers at the Martinsburg and Tennessee Computing Centers.

  5. The calculator uses a standard sample size of 195 for each center. This was established by Statistic of Income (SOI).

  6. When there is a change in Mail Stop Number, IDRS Employee Number used for MFTRA requests, or MFTRA Bulkdata Password, you must inform the Headquarters analyst prior to the month in which the change is effective.

GMF 1609
  1. GMF 1609 selects current year paper IMF returns using the skip intervals provided to the GMF Schedulers at ECC-MTB (formerly MCC) and ECC-MEM (formerly TCC), see IRM 3.0.275.6.3.1. The run generates a Form 4251, Return Chargeout, for each return that was selected for review.

  2. GMF 1609 runs each weekday of each week and selects the sample from the records of the returns that went to good tape the previous business day.

  3. Contact your local Operations Branch and arrange to have the Forms 4251 forwarded to the Improvement Team rather than to the Files function. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

GMF 1608
  1. One employee in each Submission Processing Improvement Team must obtain a TRS90/Bulkdata password in order for the team to receive the generated GMF files and MFTRA prints for Refund Timeliness and Error Measure.

    Note:

    If MFTRA prints are not needed, open an KISAM ticket to have the MFTRA prints discontinued. Remember you still need the Bulkdata password to receive the other files.

  2. To receive the password, use Online 5081, Information Systems Users Registration/Change Request, following these instructions:

    1. Logon to the Online 5081 application.

    2. Click "Initiate a personal 5081."
      For a new user - click "Request Access to an Application."
      To reset a password - click "Reset Application Password."
      To delete access - click "Delete Access to an Application." Then annotate in the special instructions, no longer need access.

      Note:

      If replacing the current user see (3).

    3. In the field labeled "Look For" enter the following: MCC TRS90 ACCESS RECORD IBM MF (MCC Master File).

      Note:

      MCC is now ECC however the programmer has requested the "Look For" be entered in this format.

    4. Click on the "Save" tab under Matching Applications.

    5. Click on the "Continue" tab.

    6. Follow prompts.

      Note:

      The new password is good for 1 year (updated in September) and must be renewed at the end of that time period. An email reminder notification will be sent via email approximately two months prior to the renewal date.

    7. If you have any questions about the TRS90/Bulkdata access password, Contact Lora R. Hilliard or Romeo A. Macalintal.

  3. If replacing the current user of TRS90/Bulkdata request, take the following steps once the password is received:

    1. Go to OSGetService and open an KISAM ticket

    2. Select My Technology

    3. Select Fix Existing Software

    4. Complete all required entries

    5. In the description state: Open an KISAM ticket to EOPS-ECC-DMB-IDSE-QSC. Need to have the NRPS.CPAS PARM file and GMF 1680 Card updated with the new password which becomes effective on MM/DD/YYYY. The new password will be sent via secure email upon request from the QSC. Remove (give name of individual that is being replaced and access code) and replace with (provide name of new individual, Service Center, Unit name, and Stop number).

GMF 1610
  1. GMF 1610 is an output file from GMF 1609 and provides a listing of data from each sampled return. Use the data from GMF 1610 to account for each sample return and to determine Data Conversion's use of Entity Index File (EIF) during data input.

  2. This report is available on Control-D and should be printed each week on Wednesday. This report will assist the Improvement Team reviewer or clerk in managing the RT&E inventory. It will also provide EIF access information for the reviewer.

  3. Data from GMF 1610 is loaded into the SMART database each week:

    • DLN

    • Sample date

    • EIF access indicator

    • National Account Profile (NAP) access indicator

    • EIF/NAP response indicator

  4. Download GMF 1610 each week from Control-D and print a copy. You will use GMF 1610 to control sample cases and to review the entity for each sample case.

GMF 1649
  1. GMF 1649 is an output file from GMF 1609. It provides a summary of the week's sample:

    • Date of sample run

    • Skip interval for each return type

    • IDRS employee number

    • Mail Stop number

    • Returns processed by return type

    • Returns sampled by return type

    • Total returns processed

    • Total returns sampled

  2. Review GMF 1649 in Control-D each week to verify that sampling has been completed. If you identify any sample problems, open an KISAM ticket following local procedures and inform the Refund Timeliness and Error Rate Headquarters analyst.

Refund Timeliness and Error Rate Clerical Procedures

  1. Improvement Team Clerks must establish a suspense filing system for the Refund Timeliness and Error Rate program. Since the sample is selected from good tape, there is a delay of approximately three weeks until the refund is issued before the sample returns can be reviewed.

Refund Timeliness and Error Rate Suspense Files
  1. The Improvement Team employee(s) should prepare folders for each week's sample. The folders should be clearly labeled with the extract ( month-week) and the cycle number. The GMF 1610 listing should be placed in the folder awaiting the returns and MFTRA.

  2. You will receive Forms 4251 each week. Make sure that they are in DLN order. Place the forms in the folder for that week's extract.

  3. You will receive MFTRA transcripts approximately two weeks after the GMF 1609 sample run. Sort the transcripts into DLN order and place them in the suspense folder for that cycle's extract. See Document 6209, IRS Processing Codes and Information, for GMF Processing Cycles.

  4. When you receive the extract's returns from Files, check to make sure they are in DLN order. Associate the MFTRA transcripts with the returns. Check the MFTRA and returns against the GMF 1610 listing to verify that all documents and transcripts have been received.

    Document Request
    If: Then:
    charge out information indicates the document is charged out, contact the area to get a copy of the document.
    charge out information indicates the document is not in file, review IDRS to see if the return was re-numbered.
    document cannot be located and 10 days have passed, input a 2nd request using CC ESTABD "V"
    document is not received within 15 days, Code the case for timeliness but exclude the case from error review.
Batch Block Tracking System Research for Refund Timeliness and Error
  1. If a return is not date stamped with an IRS received date use the Batch Block Tracking System (BBTS) to find the IRS received date (This instruction does not apply to ITIN cases, see IRM 3.0.275.6.4.3 ).Sites are not required to date stamp current year returns received prior to April 23rd. Exception: If the return has been rebatched, determine the Received Date using the instructions in IRM 3.11.3.5.2.

  2. If BBTS research indicates "no record found" for the DLN you entered, research the DLN in the BBTS History File through the intranet using the following instructions:

    1. Open your web browser.

    2. Enter the following URL in the Address Field:
      http://ts00086.tcc.irs.gov:7777/pls/web_query.bb_10g_home

    3. Select your Processing Center.

    4. Enter the DLN, tabbing between boxes. Do not enter the Document Serial Number.

    5. Click on [Generate Report].

    6. Enter the dock received date as the received date in the SMART database.

Individual Taxpayer Identification Number (ITIN) Procedures (AUSPC)
  1. Taxpayer instructions and IRS procedures regarding filing and processing Forms W-7 (Application for IRS ITIN) were revised effective with the 2004 filing season. The filer sends both the Form(s) W-7 application and the Form 1040/A/EZ together to the IRS. The ITIN application process must be completed before the processing of the tax return can be started.

  2. Effective with the 2007 filing season, filers are instructed to mail their ITIN Application (and tax return) to Austin.

  3. When reviewing cases that have gone through the ITIN process, enter the ITIN Assigned Date from the ITIN Real Time System (RTS) into the Received Date field of the DCI screen (do not enter the IRS Received Date in this field if the return went through the ITIN process).

    • Access the RTS system by logging into the Employee User Portal (EUP) (5081 needed).

    • Select ITIN RTS from the Application box on the left.

    • Select "Search W-7" from the menu on the IRS ITIN screen.

    Note:

    Exclude ITIN cases from the sample that have had correspondence. Check for any working trails left on the return.

  4. Request Form(s) W-7 as appropriate if unsure of the IRS received date.

  5. If the case was not excluded from review, enter the literal W-7 in the Case Number Field. Also enter the IRS Received Date in the Memo portion of the DCI screen.

Case Review Instructions for Refund Timeliness

  1. Form 1040, 1040A, and 1040EZ returns are processed to the Individual Master File (IMF). Effective with the 2012 filing season, the Customer Account Data Engine (CADE) retired. This means all individual returns are now processed through IMF. Therefore, the term "IMF" or "CADE 2" basically means the same thing.

  2. The Refund Pay Date field is displayed on IMFOL and TXMOD. The Refund Pay Date will display as RFND-PAY-DATE on IMFOL. The Refund Pay Date will display as RFND-PYMT-DT on TXMOD.

    • The "refund payment date" for paper refund checks is the date the Financial Management Service (FMS) mails the paper check.

    • The "refund payment date" for direct deposits is the date FMS transmits the refund to the taxpayer's financial institution.

  3. The 2014 ECC-MTB Positing Cycles chart is in IRM 3.30.123 Work Planning and Control, Exhibit 2. Posting cycles (e.g., the TC 150 and TC 846 cycle) normally carry 5 days with the exception of weeks that have holidays or weeks that had an elongated cycle. A regular cycle would have day 01 (Friday), 02 (Monday), 03 (Tuesday), 04 (Wednesday) and 05 (Thursday). If there was a holiday that Monday, then the cycle days for the week would be 01, 03, 04 and 05. Please note the last day of a cycle will always be referred to as Day 05.

    • A posting cycle 20140902 (for the TC 150 and TC 846) means the second posting day of cycle 09 (February 24). The TC 150 cycle and the TC 846 cycle will always be the same with CADE2.

    • If the return is a direct deposit, the Refund Pay Date is calculated by adding 4 business days to the return posting cycle. This equates to a Refund Pay Date of February 28.

    • If the return is a paper refund check, the Refund Pay Date is calculated by adding 6 business days to the return posting cycle. This equates to a Refund Pay Date of March 4.

  4. Record the Refund Pay Date from IMFOL or TXMOD into the Refund Pay Date field in SMART. Do not enter Received Dates or Refund Pay Dates if:

    • There is no refund (for example, a complete refund offset or a refund freeze).

    • The return was originally mailed to a state revenue agency.

    • Correspondence was sent to the taxpayer requesting missing information or documents. Exception: If the return was sent back to the taxpayer for missing signatures only, then code the case as normal.

    • The return was forwarded to the Integrity Verification Office (IVO) of Return Integrity & Compliance Services (RICS), Criminal Investigation (CI), or Examination during processing.

    • An indication any identity theft issue caused the delay (e.g., ID Theft indicator on ENMOD or IMFOLE, or a UPC 126 or 147 on the module).

    • Any indication any Fraud issue caused the delay (TC 971 with ACT-CD 052, 121, 134, 137, or 152).

    • Any indication a Refund Hold caused the delay (TC 971 AC 804/805 with accompanying TC 570 with blocking series all 5's).

    • The financial institution flips the requested direct deposit to paper check resulting in an untimely refund.

    • Do not code a defect if a Refund posted with an incorrect IRS Received Date and the correct and incorrect dates are timely and there is no taxpayer impact.

  5. Enter the Refund Method Code in the "M/D" field of the SMART database for each sample case, except for the exclusions listed in (1) above.

    • "M" for a paper refund check

    • "D" for a Direct Deposit

    • Blank if no refund was issued

  6. If there is an Electronic Fund Transfer (EFT) indicator of "0" on the IMFOL screen, determine if there is a bank account number and routing transit number shown on the IMFOL screen (Command Code IMFOB with definer "T" will show the bank account number and routing transit number if entered by Integrated Submission and Remittance Processing (ISRP). If these are present, code "D" in the M/D field. If the codes are not present, code "M."

  7. The Date Difference field on the SMART DCI screen is a calculated field based on the calendar date difference of the dates entered in the Received Date field and the Refund Pay Date field, and whether the return had a paper refund check issued or a direct deposit refund check issued.

    • SMART will add 3 days to the calendar day difference between the Received Date field and the Refund Pay Date field if the refund was issued via paper check.

      Note:

      SMART will add the 3 days because Refund Timeliness is measured using the number of days from 2 days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we assume the IRS Received Date is 2 days after the return is mailed and the taxpayer receives the refund check the day after the Refund Pay Date.

    • SMART will add 2 days to the calendar day difference between the Received Date field and the Refund Pay Date field if the refund was issued via direct deposit.

      Note:

      SMART will add 2 days because Refund Timeliness is measured using the number of days from two days prior to the day the taxpayer's return is received through the day the taxpayer receives their refund. Since timeliness is measured from the taxpayer's perspective, we assume the IRS Received Date is two days after the return is mailed and the taxpayer receives the direct deposit on the Refund Pay Date.

  8. There are some instances where taxpayers originally tried filing electronically, but were rejected, and subsequently had to file via paper return. A paper return received after the return due date will be considered timely filed by Submission Processing if the filer indicates that an unsuccessful attempt was made to timely file electronically and the paper return is received within 10 days of the notice of rejection. However, for Refund Timeliness purposes, if using the Return Due Date will make the return untimely, then use the Receipt & Control date stamp on these returns as the IRS Received Date on SMART. In the Memo portion of the SMART DCI screen, enter "MeF Rejected" and the return due date used on the return.

Refund Timeliness Who/What/Why Codes
  1. See Exhibit 3.0.275-8. to identify all timeliness errors using the Who, What, and Why codes.

  2. If a sample case's Days Diff is greater than 40 days, try to determine what caused the delay. Research BBTS and the Campus Control File (using IDRS Command Code SCFTR) for these cases to identify delays in normal pipeline processing.

  3. If the untimely refund was due to an Unpostable return, research the reason for delay and enter the appropriate Who/What/Why codes.

    Unpostable Condition
    If... Then...
    The unpostable condition was cleared within Unpostable closure timeframes (14 work days), Code Timeliness Who/What/Why for the condition that caused the unpostable.
    The unpostable condition was not cleared within Unpostable closure timeframes (14 work days), Code Timeliness Who/What/Why "H 1 KK" (Unpostables function delayed entire return).
  4. If an untimely refund was delayed by other post-processing functions, enter the appropriate Timeliness Who/What/Why codes.

    Note:

    Research to see if the return was in one or more functional areas for an extended period of time, compared to the total time in the pipeline.

  5. If an untimely refund was delayed due to a programming issue/hold, code as systemic using Who Code "J" .

  6. If an untimely refund was delayed due to being held (e.g., late legislation resulting in the delay of processing certain returns), enter Code “J” in the RT Who Code field.

  7. If the return was secured by Collections (e.g., TC599/44), use the date Submission Processing received the return as the SMART Received Date (not the Collections date).

  8. If you determine that processing pipeline functions are causing delayed refunds, consider a special review to determine the causes.

Case Review Instructions for Refund Error Rate

  1. The Improvement Team Analyst will fully review each sample case for Entity and refund amount errors and will record the review results using the SMART database.

  2. Identify and record all discrepancies between the Entity information and the refund amount shown on the taxpayer's return as submitted and the data posted to Master File.

  3. Refer to the appropriate Submission Processing IRMs for procedural instructions. Identify an error whenever IRM instructions have been followed and there is either an entity or refund discrepancy.

Refund Error Rate Who/What/Why Codes
  1. Identify all Accuracy errors using the Who, What, and Why codes. See Exhibit 3.0.275-8.

  2. Perfect cases are identified by a "P" code in the SMART database Perfect field. If the "P" code is entered, you cannot enter Accuracy or Timeliness Who, What, or Why codes.

  3. Refund Errors must be coded in the following priority:

    • Functional area/processing team Accuracy

    • Systemic Accuracy

    • Functional area/processing team Professionalism

    • Systemic Professionalism

Refund Error Rate Review
  1. The purpose of the Entity Index File processing is to save key strokes during Integrated Submission/Remittance Processing (ISRP) data entry if the name and address information already exists on the Master File.

  2. The Entity Index File is created from entity data extracted from the Business Master File, the Employee Plans Master File and the Individual Master File, as well as Social Security Administration data. The Entity Program determines whether the operator must transcribe the name and address data.

  3. The GMF 1610 file contains the following information about the use of the National Account Profile (NAP) and Entity Index File (EIF) by Data Conversion:

    • NAP/EIF Name Control,

    • NAP/EIF Access Indicator, and

    • NAP/EIF Response Indicator

    The NAP/EIF Access Indicator and NAP/EIF Response Indicator are loaded to the SMART database from GMF 1610 for each sample case. Use this information to focus on the root causes of entity discrepancies, which are the most frequent IRS process errors identified in the Refund Error Rate program. The NAP/EIF access and response codes will also help you identify systemic errors caused by Entity Index File. Such as: If short/intermediate/long has been generated and is different than what is shown on IMFOL and corrections could have been input/made then, see IRM 3.0.275.2. and IRM 3.0.275.3. See Exhibit 3.0.275-9 for a table of Access Indicators and Response Codes.

  4. The following is a list of Entity Codes:

    1. EC 1 - LONG ENTITY - Complete name(s) and address changes entered on a preprinted label or handwritten name and address information.

    2. EC 2 - SHORT ENTITY - Check Digits or Name Control entered.

    3. EC 3 - INTERMEDIATE ENTITY - Street address, City, State and ZIP entered.

    4. EC 4 - REPEAT UNPOSTABLE - Results from adding a name line to a prior EC 2 unpostable case.

    5. EC 5 - PARTIAL ENTITY - Complete name(s) entered. May also include a second name line.

  5. Record all significant discrepancies in the database.

  6. You will identify minor entity discrepancies in the Professionalism section of the SMART database. See Exhibit 3.0.275-8 for a list of Professionalism Who/What/Why codes. See IRM 3.0.275.2, Entity Review for Letter Error, Refund Error, and Notice Error Review and IRM 3.0.275.3, Address Review for Letter Error, Refund Error and Notice Error Review.

  7. If you identify a significant entity discrepancy and the taxpayer requested a Direct Deposit refund, check the Direct Deposit Indicator on the IMFOL screen to determine whether or not the refund was deposited ( Exhibit 3.0.275-10 for Direct Deposit Codes).

    Direct Deposit
    If... Then..
    Direct Deposit was honored, code the discrepancy under Professionalism.
    Direct Deposit was not honored due to the entity discrepancy, code the discrepancy under Accuracy.
    Direct Deposit was not honored due to routing or account number error, determine whether the discrepancy is significant or not and code accordingly.
  8. Route cases that require entity corrections to the Entity Team following local procedures.

Refund Error Rate Refund Amount Review
  1. Math verify each sample return to validate the refund amounts shown on the return as submitted and as posted to Master File. Identify IRS mistakes, regardless of dollar amount, using the Accuracy Who/What/Why codes in the SMART database.

  2. Verify total wages shown on the return against Form(s) W-2, using no tolerance other than a $1.00 difference as a result of rounding. If the $1.00 difference is exceeded, record the error as appropriate.

    Note:

    Use CC IRPTR (definer L and O), as necessary.

  3. Verify withholding shown on the return against Form(s) W-2, using no tolerance other than a $1.00 difference as a result of rounding. If the taxpayer claims more withholding than is supported by Forms W-2, consider the withholding not supported and record an error.

    Note:

    Use CC IRPTR (define L and O), as necessary.

  4. Review each return to determine if the taxpayer requested a direct deposit of their refund. If a direct deposit was requested, review the IMFOL screen to determine whether or not the request was honored (Command Code IMFOB with definer T will show the bank account number and routing transit number if entered by ISRP). See Exhibit 3.0.275-10 for a listing of EFT and Direct Deposit Reject Reason Codes.

    EFT Indicators
    If... And... Then...
    There is an EFT indicator "1" Data Conversion input the correct routing number from the return Code Accuracy Who/What/Why with "A 31 CC" and enter "Mailed" in the M/D field
      Data Conversion did not input the correct routing number Code Accuracy Who/What/Why with "D 31 CC" and enter "Mailed" in the M/D field
    There is an EFT indicator "6" There is a TC 846 present on the account Code Accuracy Who/What fields with "A 37" and code for timeliness
      There is no TC 846 present on the account Code Accuracy Why field with "ZZ" and do not code for timeliness.
  5. Review the IMFOL screen for refund offsets (Transaction Code 898 for other agency offsets and Transaction Code 826 for IRS offset).

    1. If the refund was completely offset, enter Accuracy Who/What/Why "Z, 37, ZZ" to exclude the case from the sample. Also, delete the Method Code, Received Date, and Refund Payment Date fields.

    2. If there was a partial refund, code accordingly.

      Note:

      Partial offsets code as a regular refund case. For example, if the amount of the offset and the amount of the refund match the amount of the refund the taxpayer computed, and there are no errors identified as far as timeliness or Accuracy, then the case would be coded as Perfect. If the offset amount and the refund amount combined are different than what is shown on the tax return, perform research to determine the reason for the difference and code accordingly.

    3. If a partial agency offset, TC 898, occurs after the refund, code the case with Who, What, and Why codes Z/37/ZZ to exclude the case from the sample. Also, delete the Method Code, Received Date, and Refund Payment Date fields. The TC 846 and the refund amount on the return will match, however, the taxpayer will not receive the amount expected. NOTE: Use the CADE posting cycle and day of the week to determine the actual date of refund and offset.

  6. If refund interest was generated because the received date was not input or edited, or the Received Date was input or edited incorrectly, code as an Accuracy error.

Missing Returns and Forms W-2
  1. If you do not receive sample returns after your second request, code Accuracy as Who/What/Why Z, 42, ZZ. The case will not be included in calculations of Refund Error Rate.

  2. If Form(s) W-2 have been detached from a return, code Accuracy as Who/What/Why Z, 42, ZZ. The case will not be included in calculations of Refund Error Rate.

    Note:

    Research CC IRPTR (definer L and O), if missing W-2's.

  3. Only record the received date and refund date when detached W-2 cases are coded Who/What/Why Z, 42, ZZ and a refund was issued.

Duplicate Filing Conditions
  1. Do not code for Accuracy or Timeliness if the sample case is a duplicate filing or if the refund from the sample case is frozen due to a subsequent duplicate filing on the same Social Security Number (SSN). Code Accuracy Z, 42, ZZ and leave the Refund Method Code, Refund Received Date and Refund Pay Date blank.

Non-compute Returns
  1. If a non-compute return results in a refund, do not code for Accuracy or Timeliness. Enter Accuracy Why Code "ZZ" and leave the Refund Method Code, Received Date, and Refund Pay Date fields blank.

Credit Elect Discrepancies
  1. If you discover that a refund was issued but should have been partially or fully credited to the following tax year, review the data entry to determine if Data Conversion input the correct credit elect amount. If not, code Accuracy Who/What/Why accordingly. If Data Conversion input the correct credit elect information, code Accuracy Who/What "J 32" (Other Systemic/Credit Elect) with the appropriate Accuracy Why code.

Data Input Instructions for Refund Timeliness and Error Rate

  1. Input case review data to the SMART database.

  2. From the Refund Timeliness and Error Rate main menu, click on the button "DCI Input Form."

  3. Enter the appropriate information into each field of the electronic form from the review documents or from a paper DCI, depending on local procedures. The Sequence Number, Form, Type, and Date Difference fields will generate automatically. You must fill in all other fields by typing or by selecting from a pull-down menu.

  4. Enter the following case identification information for all sample cases:

    1. Week Ending: For work entered Monday through Friday, use the Saturday date of that week in MM/DD/YY format (slashes required).

      Note:

      Ensure the dates are input exactly as MM/DD/YY or the database will misread and miscalculate the date difference.

    2. Office: This field generates from the GMF 1610 weekly import.

    3. Employee Number: This field generates from your log in.

    4. Case No: (optional) Enter a case number following local procedures.

    5. DLN: This field generates from GMF 1610 weekly import.

      Note:

      Allow page to load completely before selecting DLN from drop down menu or cycle field will not populate correctly and DCI will have to be reloaded.

    6. Form: This field generates from the DLN.

    7. Type: This field generates from the DLN.

    8. M/D: Select either "Mailed" or "Direct Deposit" from the pull-down list as appropriate for the refund you're reviewing. If no refund was issued, select "Blank" .

    9. Received Date: Enter the IRS date stamp received date or if no date stamp enter the receive date from BBTS.

    10. Refund Pay Date: Enter the Refund Pay Date from IMFOL for the sample case. If no refund was issued, leave this field blank.

    11. Date Diff: This field is generated from the "Timeliness Results M/D" , "Received Date" , and "Refund Pay Date" fields.

      Note:

      If you edit the Received or Refund Pay Date fields after data entry, you must make a selection in the M/D field again, even if it does not need correction. The Date Diff field will recalculate only if the M/D field is re-entered.

    12. Month: This field is generated from your entry in the "Refund Pay Date" field.

    13. Year: This field is generated from your entry in the "Refund Pay Date" field.

    14. Perfect Case (P): Select "P" from the pull-down list only if you did not identify Accuracy or Timeliness errors. If "P" is selected, the Who/What/Why Accuracy and Timeliness codes are blanked out and you cannot select them.

      Note:

      "P" must be coded if received and refund dates are blank and case is otherwise correct.

  5. Enter the following fields only if you have identified an error on the sample case:

    1. Timeliness Who: Select the appropriate Who code from the pull-down list if the "Date Diff" field is greater than 40.

    2. Timeliness What: Select the appropriate What code from the pull-down list if the "Date Diff" field is greater than 40.

    3. Timeliness Why:

      Note:

      There are a total of three Professionalism Who/What/Why code combinations available.

    4. Error Rate Who: Select the appropriate Who code from the pull-down list if you identified an Accuracy error in the sample case.

    5. Error Rate What: Select the appropriate What code from the pull-down list if you identified an Accuracy error in the sample case.

    6. Error Rate Why: Select the appropriate Why code from the pull-down list if you identified an Accuracy error in the sample case.

      Note:

      There are a total of three Accuracy Who/What/Why code combinations available.

    7. Professionalism Who: Select the appropriate Who code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

    8. Professionalism What: Select the appropriate What code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

    9. Professionalism Why: Select the appropriate Why code from the pull-down list if you identified a non-significant error in the entity portion of the refund.

      Note:

      There are a total of three Professionalism Who/What/Why code combinations available.

    10. Cycle: Automatically generated field. Allow page to load completely before selecting DLN from drop down screen or cycle field will not populate correctly and DCI will have to be reloaded.

    11. EIF/NAP: Automatically generated field.

    12. Systemic: This field will calculate from your entry in the Accuracy Who Code fields.

    13. Memo: Use this field to capture specific information about the sample case. The field is limited to 250 characters. Use the following priority when entering data:

      Refund Error and Timeliness Rate Memo Field Entries
      Priority Entry
      1 Explanation of entity Accuracy errors following "Incorrect/Correct" format. For example, if the first four characters of the taxpayer's last name was entered incorrectly "Dvais/Davis" .
      2 Explanation of refund Accuracy errors. Do not simply restate the Accuracy Who/What/Why codes. Instead, specifically explain the error condition.
      3 Explanation of timeliness errors. Do not simply restate the Timeliness Who/What/Why codes. Instead, specifically explain the error condition.

      Note:

      Do not enter sensitive taxpayer data in the Memo field. Never enter an SSN, and do not enter a taxpayer's full name or address.

    14. Status Indicator: Automatically generated.

  6. When all fields have been entered for the sample case, click on the "Add" button. The database will perform the following validity checks:

    • If Perfect field is "P" , Systemic field must be blank.

    • If Perfect field is blank, Systemic field must have an entry.

    • If Perfect field is blank, Accuracy or Timeliness Who must have an entry.

    • If Accuracy Why is "ZZ" , Accuracy Who and What must be blank.

    • If Accuracy Who is entered, Memo field must have an entry.

    • If Timeliness Who is entered, Memo field must have an entry.

    • Received Date must be earlier than Refund Pay Date.

    • Refund Pay Date year cannot be greater than current year.

    • If current month is January or February, Refund Pay Date year cannot be earlier than first prior year.

    • If current month is March or later, Refund Pay Date year cannot be earlier than current year.

    • If current month is January or February, Received Date year cannot be earlier than first prior year.

    • If current month is March or later, Refund Pay Date year cannot be earlier than current year.

    • If Received Date is entered, Refund Pay Date must be entered.

    • If Refund Pay Date is entered, Received Date must be entered.

    • If Refund Pay Date is entered, Refund Method M/D must be entered.

    • If Refund Method M/D is entered, Refund Pay Date must be entered.

  7. If any validity checks fail, a window will display the validity problem found and your cursor will be placed in the invalid field. Correct the invalid data and press the "Add" button again. Repeat this procedure as necessary until all validity checks pass.

  8. Cancel - Use this button to exit a record when the data was incomplete or should not have been selected.

Reports For Refund Timeliness and Error Rate

  1. Select the reports you want to display or print by clicking the "Reports" menu from the Refund Timeliness and Error Rate main menu:

    1. National Timeliness Reports

    2. National Error Rate Reports

    3. Timeliness Reports by Campus

    4. Error Rate Reports by Campus

    5. Print DCIs by Campus and Weekending

    6. Monthly Detail Report by Campus

  2. When prompted, enter the appropriate Center and time period (month, fiscal year, or beginning and ending dates) to generate the report.

  3. The "Print DCIs by Campus and Weekending" report will display the DCI entries for each record input to the database for the time period selected. Each DCI record will display on a separate page. You can use these prints to validate data entry and as an audit trail for your historic files.

  4. The "Monthly Detail Report by Campus" will display the Sequence Number, DCI, Form, Master File code, and Perfect Case code for all cases in the time period selected. The report is sorted by week-ending date and by DCI Sequence Number.

National Refund Timeliness Reports
  1. The following National Timeliness Reports are available:

    1. Monthly National Timeliness Report-All

    2. Monthly National Timeliness Report by Campus

    3. National Timeliness Report-All

    4. National Timeliness Report-Who

    5. National Timeliness Report-What

    6. National Timeliness Report-Why

National Refund Error Rate Reports
  1. The following National Error Rate Reports are available:

    1. National Error Rate Report-All

    2. National Error Rate Report-Who

    3. National Error Rate Report-What

    4. National Error Rate Report-Why

Refund Timeliness Reports by Campus
  1. The following Timeliness Reports by Campus are available:

    1. Timeliness Reports by Campus-All

    2. Timeliness Reports by Campus-Who

    3. Timeliness Reports by Campus-What

    4. Timeliness Reports by Campus-Why

Refund Error Rate Reports by Campus
  1. The following Error Rate Reports by Campus are available:

    1. Error Rate Reports by Campus-All

    2. Error Rate Reports by Campus-Who

    3. Error Rate Reports by Campus-What

    4. Error Rate Reports by Campus-Why

Refund Timeliness and Error Rate Reporting Periods
  1. We use the Refund Pay Date to determine a review month. For example, all cases with refunds issued in March are considered March cases.

  2. The review month cut-off date is the 22nd day of the month, following the end of the sample month.

Definition of Notice Error Rate (NER) Measure

  1. NER is the percentage of incorrect Submission Processing Master File notices issued to taxpayers. Includes the percentage of errors made as a direct result of an employee's action and/or the result of an automation/computer generated/IRM process. These errors may have a negative impact on the taxpayer.

  2. The NER Business Results Measure program provides us with the ability to assess the Accuracy of Master File notices that are generated from Submission Processing functions within the Submission Processing Center.

  3. Prior to Fiscal Year 2001, the IRS Submission Processing functions reported notice accuracy rates based on all data gathered through the Notice Paper program. That review included both Submission Processing and Accounts Management Computer Paragraph (CP) notices. Effective April, 2002 the review includes only the Submission Processing CP notices.

  4. Starting in Fiscal Year 2001, Submission Processing reported their Notice Error Rate based on Submission Processing CP notices only. See Exhibit 3.0.275-11 for a list of Submission Processing CP notices. The Accounts Management Notices will no longer be collected through the Notice Paper review process. For FY 2002, IMF and BMF, included systemic defects in the rates reported on the Commissioner's Monthly Report (CMR). For FY 2003, IMF continued to include systemic defects in the rates reported on the CMR. For BMF, systemic defects were not included in the rates reported on the CMR. For FY 2006, IMF and BMF will include systemic defects in the rates reported on the CMR.

Notice Error Rate Sample

  1. Sites conduct sample reviews of 300 cases per month of all Submission Processing CP notices and provides data to the Balanced Measurement System.

  2. The Notice Error Rate Measure samples closed cases using a "skip interval" approach for Notice Review.

    • SOI Staff will calculate the skip interval monthly and provide each SPC with a skip interval prior to the start of each month. The skip interval will remain in place for the entire month and must not be altered except at the request of Headquarters.

    • Headquarters will provide sampling assumptions to the Interactive Computer Systems Analyst (IAP CSAs) in information Technology Services (ITS) prior to the first cycle of each month.

    • If the sample needs to be increased contact the Headquarters analyst. You may increase your required sample size by decreasing your skip interval. If you choose to do this you must begin using the increased sampled size at the beginning of the month and continue through the entire month.

  3. Automated sampling programs will sample non-select and never select notices using a systematic random sampling technique. The programs generate copies of the selected notices and Form 4251, Document Request, (using the controlling DLN on the account).

    • Note:

      The Print List of Sample can now be found on Control D. The EONS runs that have been moved to Control D will show with an E after the run number. When accessing Control D Reports you can identify your SPC by the last alpha character of the run. The following identifies the SPC: A - Andover, C - Austin, B - Atlanta, G - Kansas City, E - Cincinnati, F - Fresno, and I - Ogden.

  4. Some of our notices are going through notice conversion which uses the software called Expression to create taxpayer notices. This new software will eventually replace autograph notices. The following are the new run numbers for IMF and BMF Expression notices:

    • IMF Report Name NS40094X: List of Sample

    • IMF Report Name NS40092X: Prints Forms 4251

    • IMF Report Name NS40091X: Displays the sample notice

    • IMF CP20 Report NS40191X: Displays the sample notice

    • IMF CP20 Report NS40192X: Prints Form 4251

    • IMF CP20 Report NS40194X: List of Sample

    • BMF Report Name NS20091X: List of Sample

    • BMF Report Name NS20092X: Print Forms 4251

    • BMF Report Name NS20094X: Displays the sampled notice

      Note:

      The letter "X" in the report names above represent the SPC.

    All IMF CPPAS notices have been converted to Expression software.

  5. Beginning October 2009 ITIN notices were added to the review. The following are the new run numbers for ITIN notices:

    • Report Name NS60191X: Displays the sampled notice for CP565

    • Report Name NS60291X: Displays the sampled notice for CP566

    • Report Name NS60391X: Displays the sampled notice for CP567

    • Report Name NS60192X: Print Form 4251 for CP565

    • Report Name NS60392X: Print Form 4251 for CP567

    • Report Name NS60194X: List of Sample for CP565

    • Report Name NS60294X: List of Sample for CP566

    • Report Name NS60394X: List of Sample for CP567

    Note:

    For ITIN, Austin must check the Control D files daily to get their sample information.

  6. You must manually sample notices from released work in Notice Review. See Exhibit 3.0.275-11., Notice Error Submission Processing Notice CP Numbers, for a list of notices that are required to be sampled. This includes the sampling of associated notices. Use the skip interval provided by Headquarters when completing daily pulls. Do not sample voided cases.

  7. If the sample pulls the Taxpayer notice and the associated notices (CAF/RAF notice) these notices will be excluded from the sample. Only code the taxpayer notice and load into the SMART database. If errors are identified on the associated notices send feedback to the Operation.

  8. In September 2009 the Austin Service Center began the review of Individual Taxpayer Identification Number (ITIN) with BMF ITIN to follow.

Role Responsibilities of the NER Analyst
  1. You will thoroughly examine each sampled notice using the guidelines in this IRM. You will record the results of your case analysis in the SMART database, using the NER DCI. The sampled records consist of notices as identified on the IMF and BMF Notice Controls (RUN460–3E and 160–3D) provided by Information Technology Services.

  2. New starting in July 2011 some notices will have the SSN masked with a 2D Barcode. The purpose of the barcode is to prevent disclosure and identity theft. Notices reflecting the barcode will need to be scanned (using the handheld scanner provided to your SPC). The handheld scanner will unmask the SSN, MFT and tax year, and display the information on the computer screen. All sample cases will require the appropriate IDRS Command Codes to research the account(s) involved.

  3. Review sample cases after all IDRS input action is complete. You must review the actual input against case documentation to ensure all actions were appropriately taken.

  4. If an error is found during the Improvement Team review of a Notice Review case, Improvement Team will charge an Accuracy or Professionalism error (depending on the type of error) if the Operation made the decision not to pull the return to complete the On Line Notice Review (OLNR) and a return was required for that review.

  5. If the return was not pulled because of the Notice Review Processing System (NRPS) determination by Headquarters or the return is unserviceable (files did not have return, e.g., return destroyed, Federal Record Center (FRC), or held in another area), Improvement Team will charge a systemic Accuracy or systemic Professionalism error if the return was required for that review. Improvement Team will notify Notice Review of any trends that are identified.

  6. For source documents sent to Files, prepare a document request following local procedures. If the charge-out indicates it is charged out to another area contact the area to get a copy of the document. If the charge-out indicates document not in file, review IDRS to see if the DLN was re-numbered. If after thorough research you cannot locate the document and at least 10 days have passed, input a second request using CC ESTABD "V." Use Command Code RTVUE or BRTVU if the document is not received within 15 days or Files charge-out information indicates the document has been destroyed. (Use Command Code RTVUE or BRTVU as the return information for case review.)

    Note:

    Notices can be coded as accurate or inaccurate without documentation for two months from the Monthly Report Run date.

  7. The Employee User Portal (EUP) can be used to view MEF returns required to review a notice or letter. See IRM 3.0.275.1.4 3.0.275.1.4(1) for additional information on EUP.

  8. Follow the general review guidelines in IRM 3.14.1, IMF Notice Review, and IRM 3.14.2, BMF Notice Review, when reviewing the entity portion of a notice.

    Note:

    Do not accept edited tax examiner figures.

    Note:

    See IRM 3.0.275.2. Entity Review for Letter, Refund, and Notice Error and IRM 3.0.275.3, Address Review for Letter, Refund, and Notice Error.

  9. For all notices, determine if the issue of the notice is appropriate. See Document 6209, IRS Processing Codes and Information, for a list of notices and their conditions.

  10. Review the notice thoroughly to ensure that the notice text is correct. If necessary, check the notice text against its PRP or FSP. Determine if the notice correctly describes the state of the taxpayer's account.

  11. Review IDRS, RTVUE, BRTVU, relevant IRMs, and other research sources to ensure a thorough review of the notice. For ELF returns TRDBV will reflect what the taxpayer input using E-file. Command Code TPIIP can be used to obtain a TIN on notices that have a masked TIN.

  12. Always check the notice text against the PRP when one of the following conditions exist:

    • A new notice is developed and issued

    • Existing notices are redesigned or have wording changes

    • Notices are issued at the beginning of the year after MF "dead cycles"

    Notice Determination
    If.. Then..
    A defect is identified in a notice 1. You must determine whether the standard text or the input text is incorrect.
    2. Review PRP/FSP documentation to identify standard text defects.
    3. Review input documents and case files to identify input text defects.
    A notice depends on the 23C date or the correspondence date, and the 23C date or the correspondence date is incorrect Consider the notice in error.
    You determine that an error condition requiring correction exists on a case you review You must initiate action to correct the error. Note: Local management will determine whether to return the case to the area responsible for the error or to another function for correction.
    You determine that a sample case meets criteria for referral to Collection, Examination, or Criminal Investigation, and it has not been previously identified for referral by another area. Note: If a letter attached to a balance due return requests an installment agreement and there is no notation on the return of a referral, forward the letter to the Collection Branch. Route the case to the appropriate area for review.
  13. Review the "Submission Processing Notice Systemic Error Chart" for correct coding instructions for all systemic errors. This chart is located on the Submission Processing web site, Balanced Measures, Notice Error Rate. For reporting Systemic Problems, see IRM 3.0.275.1.8.

  14. Handle the case based on the guidelines established by the area to which the case is being referred.

  15. Provide defect feedback to the appropriate functional areas. Whenever possible, recommend solutions to eliminate future defects.

  16. Provide taxpayer error information to the Public Affairs Officer.

  17. Review correspondence issued to taxpayers as part of your case review when attached to the return. Correspondence must provide a correct and complete response to all taxpayer and IRS issues. Correspondence must resolve the taxpayer's issue, request additional information from the taxpayer, and/or notify the taxpayer that information has been requested from outside the IRS. For more information on correspondence requirements, see IRM 21.3.3, Incoming and Outgoing Correspondence/Letter.

Dual Notices in the Notice Error Rate Sample
  1. The overall impact of extra Submission Processing Dual Notices being sampled is being addressed through the Unified Work Request (UWR) process. Until this programming change is completed, it is acceptable for you to manually reduce your sample of Submission Processing Dual Notices if the Improvement Team Manager determines that the number of Dual Notices received in your sample would create a hardship to review and enter into the database. Generally, the number of excess Dual Notices should be greater than five per cycle to be considered a hardship. If this is the case, you may manually reduce the Dual Notices in your sample according to the following procedure:

    1. For each cycle, calculate the number of Dual Notices you would have expected to receive based on the volumes of Dual Notices on the corresponding Notice Control Listing report.

    2. Compare this number to the number of Dual Notices actually received. If the number of Dual Notices received is greater than the number expected, calculate the difference (number received minus number expected). For example, if the expected number was 50 and you received 55, the difference is 5.

    3. Divide the number expected by the difference amount. For the example here, 50 divided by 5 equals 10.

    4. Use the result in 3) above as your skip interval. For the example here, you would remove every 10th Dual Notice.

  2. If you remove Dual Notices from your sample, every Dual Notice in your sample must have an equal chance of being removed. You must perform the reduction up front, rather than by attrition (i.e.,, do not just eliminate the Dual Notices for which you don't receive the return).

Notice Error Rate Case Analysis and Data Collection Instrument (DCI) Coding

  1. You will fully review each sample case for Accuracy and Professionalism errors and will record the review results using the NER Data Collection Instrument (DCI). Submission Processing Notice Error Rate cases are entered into the SMART Database.

  2. You can enter up to five (5) Who, What, Where, and Explanation of Error (EXPOE) Codes for any given case record.

    Note:

    Charge only one defect if the area, error code, and the situation is the same.

  3. If during your review a Systemic Professionalism error was identified, do not code. However, a PRT will be required for every systemic professionalism error. Check the Systemic Chart to see if the error has been reported previously. If not, complete the PRT and submit it to HQ. The PRT's will be monitored by the HQ Measure owner until correction. See IRM 3.0.275.1.8, Problem Reporting Instructions for Notice and Letter Error Rate, on completing a PRT.

  4. If the dollar amounts on the notice when compared to the taxpayer figures on the return differ by $5.00 more/less (excludes math errors) then fax the case to Headquarters for a determination of coding.

  5. When a defect is identified, determine the type, and then the responsible party. The following is the priority:

    1. Non-systemic Accuracy errors (Taxpayer, Lockbox, Field Office, Operation by pipeline) Code errors made in the pipeline in pipeline order. The first operation to make the error is coded first. If the case has been to ERS and ERS should have corrected the notice but didn't, code the error to ERS even if the original error was made earlier in the pipeline (code error in first DCI error position). Same with Notice Review, if a case was pulled in Notice Review and Notice Review should have corrected the notice but didn't, charge the error to notice (code in first DCI error position) Review

    2. Systemic Accuracy (IRM, system (computer/EIF).

    3. Non-systemic Professionalism (Taxpayer, Lockbox, Field Office, Operation by pipeline order). If more than one error, code the Taxpayer error last.

    Note:

    Cases pulled in Notice Review - do not code EIF, NAP, or other systemic errors since Notice Review can correct the notice. If Notice Review did not correct the notice, charge the defect to them.

    Note:

    If a notice was incorrect when it was mailed and a taxpayer error played a part, charge a taxpayer error when there are no procedures/programs in place to correct the error. If taxpayer errors are corrected through pipeline and Notice Review controls, resulting in an accurate notice, no taxpayer error is coded. Taxpayers are generally informed of their errors by Taxpayer Notice Codes used in the notice. If the notice is accurate, do not code an error.

Notice Error Rate SMART DCI Input Instructions
  1. To open the Business Results Measures Home Page:
    http://balmeas.enterprise.irs.gov.

  2. Click on Notice Error Rate Tab.

  3. Notice Error Rate Home Page is shown
    http://balmeas.enterprise.irs.gov/NoticeError/NoticeErrorHome.asp.

  4. Click on DCI Input Form key and select either "Search Record," "New Record," or "Exit."

  5. Follow the "Business Results Measures for Submission Processing Functions, Job Aid," (Catalog Number 37697B, Training 6804-701), page 5-5, steps 1-22. To obtain a copy of the Job Aid go to: http://coursebooks.enterprise.irs.gov/ on the left hand side select Business Measures which will bring up the training 6804-701, click on the training number.

  6. The following Exhibits provide Who, What, Where, and EXPOE Codes: Exhibit 3.0.275-14,Exhibit 3.0.275-15,Exhibit 3.0.275-16 and Exhibit 3.0.275-17.

Timely Entry of Notice Error Rate Cases
  1. To ensure that your monthly error rate (calculated from your sample) represents the center actual error rate (in the overall population of notices generated), you must enter as many cases as possible before the report deadline for the sample month. Cycles that will be included in the month's report are provided in the yearly Cycle Chart, (Exhibit 3.0.275-12.) for this reason, it is important that all centers remain current on the cycles you are coding.

Non-Receipt of Source Document for Notice Error Rate Review
  1. If the source document (return) is not secured prior to the two month data cut-off deadline, Submission Processing notice cases can still be input to the SMART database without the source document (return) and after the cut-off deadline, however, these cases will not be included in the official Notice Error Rate calculations because they do not represent a full review of the notice, especially the Entity area. It is likely that several Submission Processing cases sampled each month will be excluded from official error rate calculations due to the non-receipt of the return. However, information on these notices will still be available on the SMART database to capture other types of errors that can be identified without the return (e.g., systemic errors) and will be available for diagnostic purposes.

    Note:

    It is extremely important to review all your sample cases before the one month data cut-off date.

Notice Error Rate Systemic Errors
  1. The Notice Error Rate measure considers only SMART database Who Codes of "7" (Computer Program/Hardware-Not EIF, or SCRIPS), "9" (IRM/Program Requirement Package/PRP/Forms Instructions), "25" (EIF or Systemic Problems), and "26" (SCRIPTS/ELF/MAG Tape), to be true systemic errors. Systemic errors are distinguished from errors that have a human cause.

  2. SMART database Who Codes "23" (Area Office), "28" (Post Office), "29" Financial Management Service/Revenue Financial Management (FMS/RFC), "31" (Lockbox etc..), "34" (Other Government Agency), and "35" (Other Accounts Management/Compliance/campus (SC) unknown), are excluded from the Notice Error Rate calculations, since the error is not caused by the IRS Submission Processing.

  3. All other Notice Error Rate Who Codes not included in 1 and 2 above, are included as "non-systemic" in Notice Error Rate calculations on the SMART Database.

Notice Error Rate Professionalism and Accuracy Errors
  1. You will identify each defect you find as either a Professionalism or an Accuracy error. Professionalism errors are relatively minor and do not represent inaccurate information being given to the taxpayer. For example, incorrect spacing or punctuation would be considered Professionalism errors. These errors are not inaccuracies, but they do not present a professional product to the public. In contrast, Accuracy errors do represent inaccurate information being given to the taxpayer.

  2. See Exhibit 3.0.275-19 for Professionalism coding chart. This chart contains information on when accuracy errors should be charged.

  3. The following are examples of Accuracy errors. This is not all-inclusive.

    • Incorrect/misleading information in notice text (e.g.," because we refigured your tax" when we didn't, "explained on following pages" when there are no more pages, incorrect dollar amounts, etc.)

    • Entity Index File (EIF) errors, except as noted in these instructions

    • Missing literals relating to dollar amounts shown in the notice text or payment stub (e.g., a dollar amount with no clear explanation)

    • Missing telephone number when referenced in notice text

    • Dual Notice name line when name is cut off (truncated)

    • Incorrect paragraph chosen (i.e.,, IRM instructions not followed)

    • Incorrect correspondence received date

    • Failure to update change of address

Notice Error Rate Entity Area Coding Guidelines

  1. You must secure the return for each sample case to determine the presence of Entity defects.

    Note:

    No return is required for ELF documents.

  2. Check the entity update cycle and make sure the return reflects the updated entity. Otherwise, secure an additional return to verify the entity. Do not use CFOL command codes to verify entity. CFOL reflects what posted to the account, not necessarily what was on the return. Otherwise, secure an additional return to verify the entity. There is no need to request the Doc. 63 because it will only show the information that was input.

  3. For IMF and BMF, if an additional return was requested to verify the entity of a current processing year return and the return requested was from a prior year processed return, which had an entity error, take the following action:

    • Do not charge an error to the Operation if the entity information is incorrect. If appropriate, provide Feedback to the Operation. This would be considered feedback since a different return is being used to verify the accuracy of the entity on the current return. Code the case with WHO Code 25 (EIF or NAP systemic problem).

    • If the case was pulled from Notice Review and the entity wasn’t corrected, charge the appropriate type (non-systemic accuracy, systemic accuracy, professionalism, etc.,). Notice Review would be charged for not taking the appropriate action in correcting the entity.

  4. For IMF and BMF, if reviewing a current processing year return for entity and the entity does not match the master file, take the following action:

    • Check the attachments and/or signature to verify the entity. If the return information is correct, and the return was transcribed using short entity, then the return was drawn from the Entity Index File. An error would be charged to EIF if short entity were required.

    • If the taxpayer made a mistake in entering their entity, such as: misspelled street, name, only code the Taxpayer if no Operational area had a responsibility to correct. *Example: If the entity were input as "Intermediate (address change)" Error Code (EC) 3 and the street address is incorrect, Data would be charged with an error on the street address. However, on the same case, if the name was incorrect, EIF would be charged an error since only street, city, state, and zip code are input under EC 3.

  5. If you have access to DI then you can also review the history file to see if taxpayer called to update their address. Again, you will have to accept what change was made if it is more current than the address shown on the return. To view the History section, input the TIN on the "Taxpayer lookup" screen and click on "GO" . The "Disclosure" screen will appear. On this screen select "No Contact" for "Identify the Source of the Contact," and "Review/Monitor" for "Identify the Reason for Access." . Next, make the appropriate selection for "Verify Filing Status" . Scroll to the bottom of the screen and click on the "Authorized button" . The "Account Summary" screen will appear. Look to the left of the screen and you will see "Function" . Under Function – select "History" . The "History" screen will display. You can view the details for each of the history items individually or at the same time. To "View Details" for an individual item, click on "View Details" to see the actual narratives left by the person working on the account. To "View Details" for all items, click on the first item displayed. The item will then be highlighted. On the key board, hold the "Control Key" and "Shift Key" and highlight the last item displayed by clicking on the mouse. Now all of the items shown should be highlighted. Click on "View Details" and you will be able to see all of the details at once.

    Note:

    Remember Disclosure information must be answered so the history information can be reviewed. You can print the DI history as back-up to the entity change.

    Note:

    On coding the DCI "for Return" use DI. This will indicate we used DI to verify the entity. This case will be considered with return. Remember to take into account the National Change of Address (NCOA) updates which occur weekly. These updates have unique DLNs. See IRM 3.13.5, Individual Master File (IMF) Account Numbers, for additional information on NCOA. If the update was incorrect due to NCOA, then code WHO Code 28 (Post Office). Most likely these would be considered perfect since the NCOA updated the entity and unless you have supporting documentation no defect can be charged. For additional Information see: IRM 3.24.38, BMF General Instructions, IRM 3.24.37, General Instructions, and IRM 3.24.3, Individual Income Tax Returns

    .

    Note:

    1. The FINALIST program is standardization software used by the United States Postal Service (USPS) to ensure addresses are valid and correct. FINALIST knows if building numbers are valid.
    2. FINALIST is used to ensure the IRS’s outgoing mail, notices, tax packages, etc. comply with the USPS address standards.
    3. An address that is entered into IDRS and does not meet the USPS standards WILL NOT update and/or post with the input address.
    4. The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to thirteen.
    5. FINALIST will also abbreviate street names. However, a list of abbreviations used by FINALIST is not available.
    6. If you see an address that appears to be an abbreviation of the street name or city name, you can research the USPS Zip Code look up screen at https://tools.usps.com/go/ZipLookupAction!input.action. to see if the abbreviation is accepted by the USPS.

  6. For CP 211A, the entity cannot be reviewed using the notice. The notice is considered an extension notice and not a filed tax return. In these cases we will verify the filing requirements are correct for the notice and code as with return.

  7. Route cases that require entity corrections to the Entity Team following local procedures.

Notice Error Rate General Coding Instructions

  1. Refer to the appropriate Submission Processing IRMs for procedural instructions that should have been followed in generating the notice. Only code defects resulting in an incorrect notice when IRM instructions were not followed. See IRM 3.0.275.1.9"Business Results Measures Review Guidelines," for additional information on local procedures.

Other Submission Processing Business Results Measures

  1. There are other Submission Processing Business Results Measures that do not involve direct Improvement Team reviews (e.g., Deposit Timeliness and Refund Interest).

Reports For Deposit Timeliness

  1. Two sets of reports are available for Deposit Timeliness (National and Service Center).

  2. The National Reports are:

    1. Deposit Timeliness Monthly Report (with Adjustments)

    2. Deposit Timeliness - Weighted (Roll up)

  3. The Service Center Reports are:

    1. Deposit Timeliness Monthly Report

    2. Deposit Timeliness Fiscal Year Report

    3. Deposit Timeliness Quarterly Summary Report

  4. Deposit Timeliness National and Service Center Reports provides the Monthly and Cumulative Data for the following: Office, Deposits, Dollars, Lost Opportunity Cost (LOC), Lost Opportunity Cost per Million, Average Lost Opportunity Cost per Transaction and any Comments from the centers.

Deposit Timeliness Business Measure

  1. Deposit Timeliness is the measure of the percentage of timely deposits. All deposits received by the IRS and deposited by the next business day will be considered timely. Payments not deposited by the next business day are considered late. The volume of timely deposits is divided by total deposits for the timely deposit percentage. The timely deposit percentage will include all product lines: electronic, Integrated Submission and Remittance Processing (ISRP), non-ISRP manual, Lockbox bank, and Remittance Strategy for Paper Check Conversion (RSPCC).

  2. The measure is based on work performed at the Submission Processing Centers, through the ISRP system. ISRP report ISR0544 captures the transaction date and the deposit date systemically. Information from this report is passed to the Remittance Transaction Research (RTR) system, which generates a report showing the daily, monthly, and yearly total and timely deposits. Each SP site generates their own monthly reports, and enters their site’s result into the SMART database which calculates the Lost opportunity Cost (LOC).The Financial Facts (FIN-Facts) report, Deposit Activity Report and RTR are used in the computation of the timely deposit percentage.

  3. The Improvement Team Analyst will continue to enter the RTR data into SMART by the 1st business day following the end of the month. SMART is programmed to compute LOC, but not timely deposits. Lost opportunity cost will be monitored.

  4. Prior to FY2016, the Deposit Timeliness Balanced Measure quantified the interest the United States Treasury loses if the IRS does not deposit remittances received within one business day "of the IRS Received Date" .

  5. Prior to FY2016 the definition of Deposit Timeliness was the "lost opportunity cost (interest value) of money received by the IRS but not deposited in the bank by the next day, per $1 million of deposits, using a constant 8 percent annual interest rate."

  6. The opportunity cost is calculated by multiplying the dollar amount deposited, the number of days between the day after the transaction date and the deposit date, and the daily interest rate (using a constant annual baseline interest rate of 8percent). The figure is divided by the cumulative total dollars deposited and is multiplied by $1 million. Beginning in January 2004, weekends and holidays are excluded from determining if the deposit is late. After determining that a deposit was late, the LOC is calculated including intervening weekends and holidays. This is retroactive to the beginning of FY 2004.

  7. Improvement Teams and Functional areas are responsible for analyzing the results of the Deposit Timeliness measure and researching the RTR system to identify untimely deposits. Forward your findings, recommendations, and information about local deposit timeliness improvement projects to the Headquarters Deposit Timeliness analyst each month.

  8. Beginning with fiscal year 2006, all valid adjustments to the Deposit Timeliness measure will be allowed without regard to amount. Sites may submit adjustments, using the distributed spreadsheet, to the HQ measure analyst at the beginning of each month for the preceding month.

  9. No adjustment will be granted as a result of weather related SPC closure or weather related delay in receipts from Lockbox banks, Field Offices or Campus Support.

Refund Interest Measure

  1. The purpose of the Refund Interest Business Results Measure is to quantify the amount of interest IRS pays on refund returns.

Definition of Refund Interest
  1. The measure is officially defined as the amount of refund interest paid per $1 million of current year IMF and BMF refunds issued in the original settlement cycle.

Refund Interest General
  1. The IRS rules governing the payment of credit interest on IMF and BMF returns are:

    • The 45-day rule, IRS section 6611(e), provides for a processing period during which credit interest is limited in certain situations.

    • Interest will be paid on all refunds generated from returns not processed within 45 days of the later of the: return due date (determined without regard to any extension of time for filing the return), return received date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return), or the date the return was received in processible form..

    • When the 45-day interest-free period is missed, use the following chart to determine the date interest on the refund will begin to accrue.

      Determining the "From" Date
      If the Taxpayer Then Allow Interest From the Later of
      Timely filed (i.e., return received by the original or extended due date) The original due date, the payment date, or the return processible date (if the return processible date is after the due date, including any extension of time to file).
      Late filed (i.e., return not received by the original or extended due date) The late return received date, the payment date, or the return processible date.

      Note:

      For purposes of the preceding If and Then chart, the "payment date" of a prepaid credit (i.e., payment made on or before the due date of the return) is the due date of the return (determined without regard to any extension of time to file).

    • If the IRS initiates an adjustment that results in a refund or credit of an overpayment, interest on the overpayment is computed by subtracting 45 days from the number of days that interest would otherwise be allowed.

    • Prepaid credits (payments made on or before the due date of the return) are deemed paid as of the due date of the return (determined without regard to any extension of time to file) whether the return is timely or late filed.

    • IMF Combat Zone refund returns receive credit interest without regard to the 45-day processing period.

    • The HIRE Act of 2010 added IRC Section 6611(e) (4) changing the 45-day interest-free period to 180 days on overpayment refunds resulting from the tax deducted and withheld under Chapter 3 (withholding of tax on non-resident aliens and foreign corporations) or Chapter 4 (taxes to enforce reporting on certain foreign accounts).

  2. As described above, credit interest is paid on an original return overpayment when the 45 or 180 day interest free period is missed. This is generally caused by a delay in processing the return, or when full-paid or balance due returns become refunds during processing.

  3. Recommendations for improvement should be presented to the functional areas after determining the causes and the impact of the interest paid.

Formula/Methodology
  1. The measure uses a rolling 12 month cumulative figure that only includes current year IMF and BMF original settlement refunds. The figure reported represents the net refund interest dollars paid, (after reversals), divided by the quotient of the net refund dollars issued, (after reversals), divided by $1 million. Combat Zone returns for IMF are excluded from this measure.

Data Source
  1. The local Refund Interest reports necessary to perform this review are accessed through Control-D.

  2. Information in the weekly IMF 703-76-13 and the BMF 161-06-13 reports is sorted by center and used to obtain the net refund and net interest paid amounts for each cycle. The BMF reports provide a breakdown by form type and a summary of all forms at the end of each service center sort. Only current year IMF & BMF refund returns with the tax assessment, (TC 150), and Refund, (TC84X), posting in the original settlement cycle are included in these reports. Local Interest per Million is computed using this data.

  3. The IMF 703-71-XX and the BMF 161-01-XX (XX indicates the campus file location number) reports are accessed from Control-D. These reports, transmitted to the centers weekly, contain one record for each original settlement refund with interest, posted in the current cycle to a taxpayer's account. The reports show the:

    • Taxpayer Identification Number

    • Name Control

    • MFT

    • Tax Period

    • Document Location Number (DLN)

    • Received Dates

    • Refund Amount (TC 846 or TC 840)

    • Principle and Interest Amount

    • Taxpayer Notices Codes

    • Other Information Useful for Research and Determining the Causes for Refund Interest Paid.

Refund Interest Goals
  1. Goals are computed based on historical data and other issues, which may impact the measure, (i.e., interest rate increases/decreases.) Goal ranges are monitored by HQ, and revised as necessary.

Reporting Results
  1. Centers will submit monthly narrative reports to HQ, and provide updates to local management. For Refund Interest reporting specifications, see IRM 3.0.275.1.10 specifically (6) and (7), "SMART Database Cut-Off Dates and Report Information for all Business Results Measures."

  2. Improvement Team Refund Interest analysts must coordinate with their local Refund Interest Coordinator to address high amounts of refund interest paid.

  3. Coordinators should develop strategies for preventing refund interest, i.e., meeting program completion dates, using interest Jeopardy reports and developing local procedures. These local procedures, strategies and any "Best Practices, should be shared with the HQ Refund Interest Paid analyst, who in turn, will share with the other centers."

    Note:

    A "Best Practice" is defined as a new or innovative technique that has been proven to work well and can be shared or adopted, in full or in part, by other areas or offices.

  4. Coordinators may become aware of a procedural problem, or an area causing large amounts of interest. These issues should be communicated to the HQ Refund Interest Paid analyst.

Timeframe/Cycle Centers Can Expect to Begin Receiving Refund Cases
  1. The IMF process begins with interest payable on refunds issued after May 29, (45 days after the return due date of April 15). Centers will begin to see data on the 703-71-XX (XX= campus location number) Refund Case report. Prior to 21 and 46, centers should process as many full-paid returns as possible. It would be to the centers advantage after Cycle 20, to verify input dates.

  2. The BMF centers process multiple return types and have return due dates throughout the calendar year. Refunds for certain forms are accelerated several times a year as determined by National Office. These refunds cannot be intercepted.

    BMF Accelerated Cycle Chart
    MFT CYCLE 23C DATE
    02 15 4/30/2018
    05 19 5/28/2018
    02 28 7/30/2018
    02 41 10/29/2018
Refund Interest SMART Database and Homepage
  1. Refund data is generated weekly on Control-D, analyzed by the Improvement Team Refund Interest analysts and then manually entered, by cycle on SMART.

  2. To access the SMART database go to the Business Results Measures homepage at http://balmeas.enterprise.irs.gov.
    and select the Refund Interest link from the upper left hand side of the web page. This link will access the Refund Interest Home Page. Select DCI input from the menu bar at the top of the page to input case data.

  3. It is extremely important the SPCs focus on their interest causes. Identifying these causes will help centers decide what areas they need to focus on in lowering interest paid. Therefore, an adhoc query capability has been built into SMART. To access this data extraction capability, go to the Business Results Homepage, and select the Refund Interest Homepage link. On the subsequent page, the Service Center Reports option contains the link to the adhoc query form.

Refund Interest Paid Reports
  1. The weekly MCC IMF 703-76-13 and BMF 161-06-13 reports, All Forms, Original Settlement reports list the total number of refunds with interest issued each cycle for each center. The "Original Settlement Net" is a roll-up report that summarizes four detailed reports:

    • Electronic Returns

    • IRS Initiated (all refunds not requested by taxpayers when filed)

    • Unpostable Returns

    • Service Center Controllable (refunds with interest caused by the Center)

    Refund cases filter down through the reports in this order and are included on the first report that applies to that refund. The report is cumulative though the calendar year. All of the files are generated at ECC/MCC and posted on Control-D through ECC/MCC Dispatch. Combat Zone cases are excluded.

  2. The IMF 703-76-12 and BMF 161-06-12 reports show amounts for Gross Interest Paid, Interest Reversed and Net Interest Paid by cycle, and sorted by service center.

  3. The IMF 703-76-11 and BMF 161-06-11 reports show amounts for Gross Refunds, Reversed Refunds, and Net Refunds paid by cycle, sorted by service center.

  4. The IMF 703-71-11 and 703-71-XX (XX Service center location code) reports are a weekly record of all the designated SPCs individual Refund Interest cases. These reports identify the actual cases causing refund interest, and include tax periods, DLN's, and whether or not the cases went unpostable, etc. Sites should obtain these files for sampling purposes. Once these files are loaded into an EXCEL spreadsheet. the data can be manipulated and sorted to extract a sample from any of the categories for review.

Refund Interest Contact and Definition
  1. Local Refund Interest Paid Coordinators, their designated center, telephone number, and email address, are listed under the contact link on the Refund Interest Homepage. National Office contact information is provided on the Business Results Measures Homepage under National Office Contacts/Staff.

  2. The Refund Interest Definitions link on the Refund Interest Home Page provides some IMF and BMF program specifications, historical interest rates and a record layout of the 703-71-12 (IMF) and 161-01-12 (BMF) for Refund Interest Paid.

Refund Interest Processing Cycles
  1. The Processing Cycles page list the processing cycles for each month. See Exhibit 3.0.275-23.

Requesting Returns for IMF and BMF
  1. For IMF and BMF case reviews, centers should, at a minimum, select 12 cases with the highest amount of refund interest paid per cycle (weekly) from the 703-71-XX IMF Report and 161-01-12 BMF Report.

  2. You may choose to request your returns on IDRS or use a template of a Form 2275, Records Request, Charge and Recharge, for Returns-Expedite. Complete the request and wait to receive returns. If a return is received and it becomes necessary to forward it to another area, re-charge the document using Command Code ESTABDT. See IRM 3.5.61 Accounts Services - Files Management and Services (.1.4(1)m and .2.13.17–1) Overlay the EMP. NUM> field with the IDRS number of the employee the document is being sent to.

  3. Not all returns will be received with the first document request. Those not received should be requested a minimum of three times before coded as "Unknown" or "Cannot be Determined" .

IMF and BMF Research Tools
  1. Research each sample case utilizing the following research tools:

    1. UPTIN - to determine how long Unpostables (UP) had the case in their inventory.

      IMF

      • Check for misapplied credits and any outstanding balance due on other tax periods for the taxpayer. IF found and a liability exist that corresponds with the payment(s), transfer the credit.

      • Ensure that all posted payments belong to the taxpayer. If, when reviewing the case, any misapplied credits have already refunded (due to CADE2 processing), complete the Erroneous Refund Identified Sheet and route to the appropriate function who will follow the erroneous refund procedures in IRM 21.4.5 Refund Inquiries - Erroneous Refunds.

      BMF

      • If UP 381 RC 2 is shown, check for misapplied credits and other taxpayer identification numbers for the taxpayer. If found and a liability exists that corresponds with the payment(s), transfer the credit.

      • If UP 305 RC 4 is shown for another module, determine if the payments(s) that are refunding should be transferred.

      • To determine how long UP had the case in their inventory.

    2. RTVUE/BRTVU

      To determine how the taxpayer filed the return (refund/non-refund, the existence of any Taxpayer Notice Codes (TPNC) and if the taxpayer is expecting this refund?)

    3. TRDBV

      Use in researching Input Correction Operations case history.

    4. IMFOLT/BMFOLT/TXMOD

      To view credits posted to the module and any pending activity.

    5. SCFTR

      To follow the progress of the block of work through the Service Center pipeline. Did the block go to ERS or Rejects? If so, how long was it there? Was correspondence sent? if so, was a Correspondence Received Date (CRD) entered? Charge an IMF processing defect to ICO for No Reply Correspondence cases when Computer Condition Code “U” was not entered as instructed in 3.12.37.23.10.1.

    6. RTR

      Used to view an image of a taxpayer's check.

    7. BBTS

      To determine if the return was timely and correctly batched. Check the return received date against the IRS batched date. (the return is needed to verify the actual received date.) Was the return transshipped? Check the batched received and released dates for the various functions and analyze why the refund missed the 45 day interest free period. Determine how the return was batched. The Program Code or Batch ID field identifies refund vs non-refund or 11 day/6 day cycle. Look for merges and bypass work. These cases are added in Numbering because they were pulled out of their original batch.

    8. Research to see if the return was in one or more functional areas for an extended period of time compared to the total time in the pipeline and enter the appropriate WHO/WHAT WHY codes.

IMF and BMF General Information
  1. If the return shows a refund then check the "Batch/Block Tracking System (BBTS)," print to ensure the return was batched correctly. Check these BBTS fields:
    Batch Identification Code - is located at the top right of page 1. These codes identify how the return was batched. If no code is shown, then it was batched according to the Program Code. See IRM 3.10.5, Batch/Block Tracking System (BBTS), for additional information.
    Received Date- located under the Program Code. This shows as a Julian date/year and is not necessarily the received date of the return under review. This is the earliest received date in the block of work. The actual received date of the return must be entered on the DCI.

  2. Release Date - is located to the right of the BBTS received date, see received date format. Code a Taxpayer defect for a misplaced entry that affected the batching of the return.

  3. Check the "Service Center Control File," (SCCF) print to see how long it took from the time the block established on SCCF until it posted to good tape. Be careful not to charge an area for late processing if the returns posted within a few days of being entered in Data Conversion.

    Note:

    SCCF- A Magnetic Tape Control System used to record the receipt of Returns or documents into the processing pipeline, to track the process of the documents through the processing system and finally to record the fact that all items have been completed. The SCCF systems maintain separate totals for revenue receipt items and other items. See IRM 2.3.36, IDRS Terminal Responses - Command Code SCFTR, on how to read this report.

  4. The tax return may not always be necessary to review the case. A return is not necessary in the following situations:

    • TC71X, misapplied payment (IMF TC430/610/640/660/670 and BMF TC650/660/670) is causing a refund. (If you cannot determine where it belongs, check RTR to view the taxpayer' intent.)

    • An extension payment was processed as a TC610 payment with a return (IMF U-140 and BMF U-399 and Unpostable 381-2 and certain 305-4 conditions).

    • A prior year Credit Elect is not claimed on the return.

    • Other payment problems identified using RTR or SCRIPS documents.

    • Pending (PN) TC976 subsequent or amended return.

    • Credit interest is paid on an offset, (TC826), to a balance due module on the sample spreadsheet received from Planning and Analysis (P&A), check listing category of "Offset of Principle" to determine if the refund met the 45 day interest free period. This can be done by looking at the column titled "Timely Refund" . If the value is this column is equal to 1, the offset is the only reason for the interest paid. Code this case as systemic due to the offset.

    Otherwise, request the return to determine why the 45 day interest free period was not met.

IMF and BMF Refund Interest Case Review
  1. The purpose of the IMF and BMF review is to determine the causes of credit interest being paid and to take action to reduce these amounts in the future. Actions taken can include feedback to the various functional areas, (either in general or for specific cases), Memoranda of Understanding (MOU's), SERP Alerts, and other measures.

  2. The sample is produced weekly for each cycle that refunds generate. This is normally every cycle except for the "dead cycles" that occur in January of each year. The Program Analyst extracts the sample weekly from Control-D file (IMF 702-71-XX) and (BMF 161-01-XX)

  3. Review the case per the functional areas IRM procedures. The return is an important source document for the review, and in most cases, needed for a complete and accurate evaluation. Review IRM 3.0.275.8.3.12, IMF and BMF Research Tools.

  4. Verify the return was timely filed. If not, compare the received date stamp on return against what was entered by Data Conversion.

  5. Check the return for correspondence. If present and the reply was received after the due date of the return, a Return Processible Date (a.k.a. Correspondence Received Date) should be present on the return. See IRM 3.12.3.60.7 for further information.

  6. If return indicates correspondence was sent but no reply was received, "No Reply" should be stamped on the front of the return and no Return Processible Date (RPD) should be shown on the return. Since RPD is blank on these returns, it is essential that Computer Condition Code (CCC) "U" be present, except as noted in the IRMs of Code and Edit and Input Correction.

  7. Determine if the taxpayer is expecting a refund. If the dollar amount of any Estimated Tax Payments posted to the module is greater than the dollar amount claimed by the Taxpayer, check CC IMFOLT/BMFOLT and the Remittance Transaction Research (RTR), to make sure all payments on the module have posted correctly. Check the refund section of the return to determine if an entry is shown on the "Refunded to you" or "Amount you owe" line. If an entry is shown on the "Amount you owe line" then determine if the taxpayer paid the balance, if so this is considered a full-paid return. If zero is shown then the return is considered even balance return.

  8. Code the case per "Who, What and Why" using the following: Exhibit 3.0.275-20, Exhibit 3.0.275-21, and Exhibit 3.0.275-22. When multiple defects are identified, code the DCI according to the following priorities:

    1. The last functional area able to correct a defect, (i.e.,, omitted credit transfers),

    2. The longest period of time spent in a functional area through no fault of the Taxpayer,

    3. Taxpayer defects.

  9. Input case to SMART on the Refund Interest Database.

Refund Interest Data Collection Instrument (DCI) Input Instructions
  1. To open the Business Results Measures Home Page:
    http://balmeas.enterprise.irs.gov

  2. Click on the Refund Interest tab.

  3. Refund Interest Home Page is shown: http://balmeas.enterprise.irs.gov/RefundInt/RefundIntHome.asp

  4. Click on DCI Input Form Key and follow the "Business Results Measures for Submission Processing Functions, Job Aid," (Catalog number 37697B, Training 6804-701), Section 7. To obtain a copy of the Job Aid go to: http://coursebooks.enterprise.irs.gov and select Business Measures which will bring up the training 6804-701. Click on the training number.

Reporting the Problem
  1. After case analysis is completed on each return, provide the results of the review to the Pipeline Operations Managers and Pipeline Department Managers. Follow local reporting procedures.

Productivity Business Results Measure

  1. The Productivity Business Results Measure was discontinued January 1, 2015.

Submission Processing Lockbox Processing Procedures

  1. The Lockbox information contained in this section is not to be used by the Business Results Measures.

  2. This section has been moved from the IRM 3.0.230, Submission Processing Center Quality Review of Lockbox.

Submission Processing Center Quality Review of Lockbox

  1. The reviews were established to ensure that IRS Lockbox Sites work meets the standards in the Lockbox Processing Guidelines (LPG). Each review examines critical elements that are used to provide information to the Lockbox Processing sites. It is imperative that the reviews are completed daily. They will be used to assess the overall performance of each Lockbox site.

    Note:

    SPC's with multiple Lockbox Sites are required to perform daily review of work received from each Lockbox site.

  2. Each review is associated with a data collection instrument (DCI) created in Microsoft Excel. Results from these reviews will be incorporated into the Lockbox Performance Standard. General and specific guidelines for the review process and use of DCIs can be found in the sections below.

General Guidelines

  1. The DCIs reflect the work to be sampled, sample size, error descriptions and other review information. Read both the instructions and the DCI carefully before beginning.

  2. Document all pertinent comments relating to charged errors in the "other" column. Write them in the comments area on the DCI or on the main comments sheet.

    Note:

    Ensure corrective action is taken on the taxpayer's account when identified during the Service Center Review.

  3. Forward completed DCIs to the LFC by the fifth working day of the following month. The LFC will maintain these reports for the length of the contract.

Mail Out Package Review

  1. A 100 percent review of the mail-out package must be performed daily upon receipt.

  2. In the column entitled "Package Contents," answer "complete" if all the required items were included in the packages, answer "Incomplete" if any of the required items were missing.

  3. In the column entitled "Lockbox Document Transmittal (LDT) Acknowledgement Page Correct? (Items other than with remit)," answer "YES" if the LDT was correct and answer "NO" if it was not.

  4. In the column entitled "With-Remit - Tamper Proof Bag serial numbers reconciled?" Answer "YES" if the reconciliation was successful and answer "NO" if it was not.

  5. For any "Incomplete" or "NO" provide an explanation in the comments column.

  6. When an error is found provide copies of the sampled case to the LFC.

  7. Forward the DCI to the LFC by the fifth working day of the following month.

Unprocessable Items Review

  1. An employee from the Improvement Team function will perform sample reviews on all unprocessable (with remittance and non-remittance) work in Receipt & Control on a daily basis.

  2. To sample, randomly select 15 with remittance documents and 15 non-remittance documents to review.

  3. Record the number of processible items found, record the number of incomplete items found and record the number of common processing requirements not met among the unprocessable items. The DCI has a list of the codes and corresponding processing requirements.

  4. If the "other" category is selected, explain the error in the comments column.

  5. When an error is found provide copies of the sampled case to the LFC.

  6. Forward the DCI to the LFC by the fifth working day of the following month.

Return Sort Review

  1. IMF returns will only be reviewed January through April at IMF sites. BMF work will be reviewed year round at BMF sites.

  2. An employee from the Improvement Team function will perform a sample review from each category of returns in Receipt and Control on a daily basis.

  3. To sample, randomly select six batches from each category. Randomly select three returns from each sampled batch. If six batches are not available in a category, randomly select three returns from each batch that is available. If sampled batches have less than three returns, review all returns available, do not sample another batch.

  4. Record the number of returns found in error on the DCI. An error will result when:

    • Return is mis-sorted (e.g., Form 1040A sorted as Form 1040).

    • A check is found on the first page, the balance due page, or with the W-2 on the front.

    • A Form 9465 (Installment Agreement Request) attached to the front of the return and not date stamped.

    • A refund return sorted as "full-paid" (should be Part Paid or Non Remit).

  5. Review the cover sheets associated with each sampled batch. On the DCI, record the number of cover sheets reviewed and the number of cover sheets in error. Cover sheets with the wrong received date or wrong form are considered in error. Each cover sheet can only be charged one error, even if it contains multiple errors. Use the additional columns to show the number of each error type found. Results will filter to the cover sheets summary tab in the worksheet.

  6. When an error is found provide copies of the sampled case to the LFC.

  7. Forward the DCI to the LFC by the fifth working day of the following month.

Return Sort 1040X Review

  1. A daily sample will be performed by an employee from the Improvement Team during the months of March and April.

  2. To sample, randomly select six batches of 1040X work. Randomly select three returns from each sampled batch. If six batches are not available, randomly select three returns from each available batch. If sampled batches have less than three returns, review all returns available. Do not sample another batch.

  3. Record the number of returns found in error on the DCI. An error will result when:

    • Return not date-stamped or incorrectly date-stamped

    • Envelope missing and no postmark stamp

    • Mixed form type

    If the "other" category is selected, explain the error using the comments column.

    Note:

    The number of errors cannot exceed the number of sampled returns. One return can have multiple errors but only count one error. Detail the multiple errors in the type of errors section.

  4. Review the cover sheets associated with each sampled batch. Record the number of cover sheets reviewed and the number of cover sheets in error. Each cover sheet can only be charged one error, even if it contains multiple errors. Use the additional columns to identify the number of each error type found. Results will filter to the cover sheets summary tab in the workbook.

  5. When an error is found provide copies of the sampled case to the LFC.

  6. Forward the DCI to the LFC no later than the fifth working day of the following month.

Prior Year and Delinquent Return Sort Reviews

  1. An employee from the Improvement Team function will review a sample of prior year and delinquent returns in Receipt and Control.

  2. To sample, randomly select a total of six batches of prior year returns and a total of six batches of delinquent returns. Randomly select three returns from each sampled batch. If there are not six batches available within a category, randomly select three returns from each batch that is available. If sampled batches have less than three returns, review all returns available. Do not sample another batch.

  3. Record the number of returns in error on the DCI. An error will result when:

    • Date stamp missing or illegible and/or incorrect date

    • Envelope missing and no postmark stamp

    • Current year return mis-sorted as prior or timely return mis-sorted as delinquent

    • Mixed form types

    • Check is found on the first page, balance due page or within the W-2s

    Note:

    The number of errors cannot exceed the number of sampled returns. One return can have multiple errors but only count one error. Detail the multiple errors in the "type of errors" section.

  4. Review the cover sheets associated with each sampled batch. On the DCI, record the number of the cover sheets reviewed and the number of cover sheets in error. Cover sheets with the wrong received date or wrong form are considered in error. Each cover sheet can only be charged one error, even if it contains multiple errors. Use the additional columns to show the number of each error type found. Results will filter to the cover sheets summary tab in the workbook.

  5. When an error is found provide copies of the sampled case to the LFC.

  6. Forward the DCI to the LFC no later than the fifth working day of the following month.

Deposit Error Review

  1. Each lockbox site will pull a random sample of 12 envelopes for each day that they receive mail.

  2. All copies will be placed in a larger envelope labeled "Deposit Error Sample, Improvement Team Staff," along with the appropriate Mail Stop number. This package will be put in Box #1 of the daily Lockbox Shipment.

  3. An employee from the Improvement Team Function will review the selected samples provided by the lockbox. The sample could include either IMF or BMF items.

    Note:

    This review must be performed throughout the year for each day the lockbox receives mail.

    Note:

    The following procedures provide basic instructions for performing the Service Center DCI Lockbox Deposit Error Review utilizing the RTR system.

  4. RTR Instructions:

    1. Access RTR

    2. Click on "Research" in tool bar at top of screen.

    3. RTR Research: enter criteria screen will come up. Query by entering a Deposit Date 'range' (note: the range should be the "received date" plus five calendar days), enter the TIN, Name Control, and payment amount. Near the bottom of the screen click "Lockbox Only" . After entering this information press enter or click "Submit."

    4. When the payment is found the following screen will come up: Filter results: 1 Transaction Found.

    5. Click on the date in the Deposit Date cell (e.g., 02/14/2005). The following screen will come up: ISR1340 Document Remittance Register Details - print this screen (landscape). Using the information on the print verify that the payment was processed accurately (i.e.,, verify that the payment was processed with the correct MFT, TIN, Name Control, Money Amount, Transaction Date, (should be the date notated by the lockbox bank on the case file) Tax Period, Transaction Code(s)). Special instructions for split payments or multiple payments Verify all data available. Charge only one error per case.

      Note:

      If a payment was not processed accurately notate the correct information on the RTR ISR1340 screen print below the incorrect date in error. Attach the screen print to each case file.

    6. When an error is found place an "X" on the DCI in the column that best describes the error. Provide copies of the RTR ISR1340 and copies of the sampled case to the LFC.

Deposit Error Review DCI Instructions

  1. Record the number of cases received on the DCI using the received date from the sample.

  2. Do not enter zeros for days when the review is not performed.

  3. Record the number of cases found in error on the DCI. Use the "Lockbox Error" column to document these errors.

  4. Use the error codes on the DCI to identify the types of errors found.

  5. If the "other" category is used, record an error and use the Comment column to explain the error.

    Note:

    A case may have more than one error code identified, but only one error per case may be charged.

  6. Provide a copy of the case that is in error and the associated RTR data screen print to the LFC.

  7. Forward the DCIs to the LFC no later than the fifth working day of the following month.

  8. Retain all sample Lockbox Deposit Error Rate (DER) cases for a rolling six month.

Deposit Error Review DCI Column Explanations

  1. Taxpayer Error - Used when an error occurred due to information provided by the taxpayer. This may include illegible or unclear information. For taxpayer errors, no errors will be notated in the categories under "Types of Errors" .

  2. Unprocessable - Used when a case is a true with/remittance unprocessable and was handled incorrectly by the bank. If the bank incorrectly sent the case to the center as an unprocessable, the case should not be entered in this column. It should instead be marked as a "Lockbox Error" .

  3. Residual - Used when the sample case does not involve a remittance. No errors will be notated on residual cases.

  4. Taxpayer Impact - Used when a case that is marked as a lockbox error will result in a notice, letter, penalty, and/or interest charge to the taxpayer. The type of impact must be described in the comments column.

Automatic Extension of Time to File Review Form 4868 (April 10 - April 30 IMF Only)

  1. Each IMF Lockbox Site will pull a daily random sample of twelve envelopes from the Form 4868 PO Box if available.

  2. The Lockbox site will place all photocopied items in a larger envelope labeled with: Improvement Team, appropriate Mail Stop, and "Lockbox Form 4868 Review" . The package will be put in Box #1 of the daily Lockbox Shipment. If no sample package is received, annotate No sample package received in the comments column and contact the Lockbox Field Coordinator.

  3. An employee from the "Improvement Team" will review the selected samples provided by the Lockbox Site.

    Note:

    Sampling will only be done at the IMF Lockbox sites.

Form 4868 Review DCI instructions

  1. Errors will be charged when an extension has been processed incorrectly as approved or incorrectly as unapproved or if an extension has been processed as approved with a RTR transaction date later than 4/22 (or 4/15 for items received 4/23 through 5/7 subject to the postmark review) or processed with an incorrect transaction date.

  2. All other errors identified (SSN, name control, etc.) may be recorded in the comments column, but will not be recorded in the "Lockbox Error" column.

  3. On a daily basis, whenever an error is identified or suspected notify the LFC IMMEDIATELY via their cell phone. It will be necessary to contact your LFC on their cell phone as they will be at the Lockbox site during the review period.

    Note:

    For LFC contact information see Lockbox Processing Guidelines (LPG 1.2(3)).

DCI Explanations

  1. Sample Date - The "Sample Date" is the received date of the sample case.

  2. Lockbox DLN - For each case, enter the Lockbox DLN (xxxxx-xxx-xxxxx). The Lockbox DLN can be determined via Remittance Transaction Research System (RTR) research and will have a valid Lockbox File Location Code (FLC) from the chart below. If the case is a 'residual' enter the taxpayer's name control in place of the DLN.

    LOCKBOX FILE LOCATION CODES
    SPC Lockbox Bank Scan Scan Overflow Non-Scan Non-Scan Overflow
    AUSPC JP Morgan - Charlotte 73 50 75 53
    CSPC US Bank - Cincinnati 35   31  
    CSPC Scan Overflow 26      
    CSPC Non Scan Overflow 27      
    FSPC BOA - Union City 68 15 94 24
    FSPC -1 US Bank - Cincinnati 33 80 77 90
    KCSPC JP Morgan - Louisville 36 40 39 42
    KCSPC - 1 BOA - Windsor 47   48  
    KCSPC Scan Overflow 37      
    KCSPC Non Scan Overflow 44      
    OSPC BOA - Windsor 91   92  

    Note:

    Consider the following as residual: a non-remit Form 4868 or any form other than a Form 4868. However, if a form other than a Form 4868 was actually processed as a Form 4868, this is NOT a residual and the information should be captured on the DCI (e.g., a Form 1040ES that was processed as a Form 4868). A "check only" annotated by the taxpayer anywhere on the check as payment for an extension should be processed as unapproved.

    Note:

    There may be more than one TC460 posted on the IDRS module. This may be due to the fact that the taxpayer or preparer filed an extension electronically. These will ordinarily appear with an FLC that is not listed above. Use caution when determining the origin of the FLC. Typically, the TC460 will be directly under the Lockbox payment posting DLN (retrieved from RTR), with the same date and same FLC. If there is any question as to the origin of the TC460 or the correct posting, please contact the Lockbox Field Coordinator immediately.

  3. Lockbox Error - Place an "X" in the "Lockbox Error" column for the following error conditions:

    • Processed incorrectly as approved.

    • Processed incorrectly as unapproved.

    • Processed as approved with a transaction date of 4/23 or later. (For samples with received dates 4/20 through 4/22.)

    • Processed as approved with a transaction date later than 4/15 (this is for samples with received dates 4/23 through 5/7 that have a timely postmark of 4/15 or earlier).

    • Processed with an incorrect transaction date.

  4. Postmark Date - Enter the earliest postmark date from the envelope or "missing" or "illegible" .

  5. RTR Transaction Date - Input the transaction date from RTR. Use the RTR instructions below to locate the transaction on RTR.
    RTR

    1. Access RTR

    2. Click on "Research" in tool bar at top of screen.

    3. RTR Research: Enter criteria, screen will come up. Query by entering a Deposit Date Range.

      Note:

      The range should be the "received date" plus 5 calendar days, enter the TIN, name control, and payment amount. Near the bottom of the screen click "Lockbox Only." After entering this information press enter or click "Submit."

    4. When the payment is found the following screen will come up: Filter results: 1 Transaction found.

    5. Click on the date in the "Deposit Date" cell (e.g., 04/16/2011). The following screen will come up: ISR1340 Document Remittance Register Details - print this screen (landscape). Using the information on the print, verify that the payment was processed accurately with the correct MFT, TIN, name control, money amount, transaction date, (should be the date notated by the Lockbox site on the case file) tax period and transaction code(s).

      Note:

      If a payment was not processed accurately notate the correct information on the RTR ISR1340 screen print below the incorrect data. Attach the screen print to each case file.


      Special instructions for split payments or multiple payments

    • Verify all data available.

  6. Transaction Date Correct - Select "yes" or "no" from the dropdown menu. Items received April 23 through May 7 are subject to a postmark review and should have a 4/15 transaction date if the earliest postmark is timely. Items with missing, illegible, and untimely postmarks should carry the transaction date annotated on the sample.

  7. IDRS Date - Enter the IDRS date of the Lockbox transaction. Use the IDRS instructions below to determine how the extension was processed.
    IDRS

    1. Access IDRS

    2. Research payment via Command Code IMFOLT (other command codes may be used if necessary). Use the SSN from the RTR report to research the payment. Be sure the payment you review is the posted Lockbox payment which will have a Lockbox FLC.

  8. Processed as approved/not approved - Place an "X" in the appropriate column indicating how the extension was processed. If the payment was processed as approved, there will a transaction code 460 and transaction code 670 with the Lockbox DLN present on the module.

  9. Comments - Any pertinent comments, including transactions processed with an incorrect TIN, name control, etc.

    SPECIAL INSTRUCTIONS

    1. If processing errors are identified or suspected contact your LFC immediately! It will be necessary to contact the LFC on their cell as they will be at the Lockbox site during the review period.

      Note:

      For LFC contact information see Lockbox Processing Guidelines (LPG 1.2(3)).

    2. Please ensure corrective action is taken on the taxpayer's account when an error is identified during the review.

    3. At the end of the review period, provide all copies to your LFC, this includes: all photocopy envelope and contents, IDRS prints, and RTR prints. Each sample case should be stapled together including backup research data (RTR and IDRS prints).

Correspondence Error Rate Business Result Measure

  1. The purpose of the Correspondence Error Rate Business Results Measure is to determine the combined percentage of incorrect correspondences (letters and notices) issued to taxpayers by Submission Processing.

Definition of Correspondence Error Rate

  1. The Correspondence Error Rate is defined as the percentage of incorrect letters and notices issued to taxpayers by Submission Processing. The number of correspondences that are inaccurate, unprofessional or unclear, as a direct result of an employee's action and/or the result of an automation/computer generated/IRM process is divided by the sample size to determine the percentage of inaccurate correspondence. This sample is comprised of 60 percent notices and 40 percent letters.

Sampling, Data Gathering and Reports for Correspondence Error Rate

  1. The Letter and Notice Error sampling, review procedures, data gathering, and data entry will be based upon the current guidelines established for these measures.

  2. After the data has been entered into the Letter and Notice Error Rate SMART databases an extract of the combined data will be loaded into the Correspondence Error Rate Reports.

  3. There will be four reports that will provide information on the Correspondence Error Rate. They are:

    • Correspondence Error Rate Report by SPC, IMF, BMF, and National Accuracy with Systemic Errors Counted as Errors

    • Correspondence Error Rate Report by SPC, IMF, BMF, and National Systemic Errors Not Counted as Errors

    • Correspondence Error Rate Fiscal Year Report - Accuracy Errors with Systemic Errors Counted as Errors

    • Correspondence Error Rate Fiscal Year Report - Accuracy - Systemic Errors not Counted as Errors

  4. The Headquarters Analyst will be responsible for reporting the results to management. The sites will still prepare their monthly reports and narratives using the current Letter and Notice Error Rate procedures.

Rejects Correspondence Timeliness

  1. The purpose of the Rejects Correspondence Timeliness Initiative is to ensure the timeliness guidelines have been met when corresponding and closing correspondence cases. Monthly data will be submitted to Headquarters.

  2. This initiative is based upon two timeframes:

    • The number of workdays from the suspense date to the letter input date (10 days)

    • The number of workdays from receipt of the response or no reply date to the date the case is closed (10 days).

  3. This new performance indicator rolled out in October 2010 to the IMF SPCs and January 2011 to the BMF SPCs.

Review Guidelines

  1. This review is performed to ensure a 10 work day limit from suspense date to letter issuance date and a 10 work day limit from No Reply/Correspondence Received Date to Reject case closure date. If either of these two timeframes exceed 10 days, the case will be considered untimely. Review guidelines, as outlined in IRM 3.0.275.1.9, will apply to this timeliness initiative. Case records should be retained consistent with procedures in IRM 3.0.275.1.11.

  2. Any deviation from the following procedures must follow IRM 1.11.2.2.4 and be reported, prior to execution, to the Headquarters Analyst for consideration.

Description of the Process

  1. Improvement Team specialists utilize a Skip Interval and Random Start Number Tool which assists them with the random selection of returns where letters have been issued to the taxpayer by Submission Processing. Selected cases are loaded into a DCI housed on an Excel spreadsheet. This data is used to produce a monthly report, reflecting the timeliness for each SPC. Use the chart below to identify Cut-Off dates and due dates for the Monthly Reports.

    FY 2018 Sample Month Data Cut-Off SPC Narratives to Headquarters Headquarters Report due
    October 2017 10/31/2017 11/7/2017 11/10/2017
    November 2017 11/30/2017 12/7/2017 12/12/2017
    December 2017 12/29/2017 1/5/2018 1/12/2018
    January 2018 1/31/2018 2/6/2018 2/12/2018
    February 2018 2/28/2018 3/6/2018 3/12/2018
    March 2018 3/30/2018 4/6/2018 4/11/2018
    April 2018 4/30/2018 5/7/2018 5/10/2018
    May 2018 5/31/2018 6/6/2018 6/12/2018
    June 2018 6/29/2018 7/6/2018 7/11/2018
    July 2018 7/31/2018 8/7/2018 8/10/2018
    August 2018 8/31/2018 9/7/2018 9/12/2018
    September 2018 9/28/2018 10/5/2018 10/11/2018
  2. Use the cycle chart in Exhibit 3.0.275–23 when completing the Weekly Population Counts for a given month within your DCI tab. These volumes will be used when computing the weighted results, so it is very important the Cycle chart is followed.

Rejects Correspondence Timeliness Sample
  1. The review utilizes the Standardized Normal sample size calculation to achieve a 95 percent confidence level and a sample precision not greater than 5 percent.

  2. The sample must be selected daily from paper and electronically filed cases in order for each case to have an equal chance for selection. Improvement Team specialists utilize the daily ERS-7745 Report from Control-D to determine the Reject Correspondence cleared volumes from the prior day’s work. If the primary analyst is not available to select the daily sample, an alternative analyst or back-up must be used for that day.

  3. Follow these procedures for selecting the daily site sample:

    1. Add the daily ERS-7745 Volume Cleared amounts for Status Codes 321, 322, 324, 421, 422 and 424. The total represents your site’s total population of closed correspondence cases ready to be sent to Files. (Signature only correspondence is not to be includedin the daily site sample, daily Closed Case volume from ERS 7745 or Skip Interval counts for daily sample selection.)

      Note:

      BMF Sites will no longer use Status 324 & 424 volumes as their IMF daily volume. Since there is now only one sample which includes both IMF & BMF cases, follow 3.0.275.11.2.1 (3)a above.

    2. Input the total number of cleared correspondence cases to Column C of the Skip Interval Tool provided by SOI. This will calculate the number of intervening cases between those selected for your sample in Column E, (the Skip Interval) and provide a Random Start Number, Column G.

      Note:

      Your Column C entry should be adjacent to the date which corresponds to the Control-D Job Run Date. For Friday cleared volumes, the appropriate report is usually found with the Saturday Control-D Job Run date. This volume, and any weekend volumes, should be included in the following first work day (since it may not always be a Monday). Cleared volumes prior to a holiday are usually shown in Control-D and have the holiday Job Run Date. Enter this volume in the date next work day immediately after the holiday to reflect your current sample date.

    3. A representative from the local Improvement Team will then go the site’s ICO and select the sample from the prior day’s completed work for Rejects.

    4. All completed Reject work of a non-correspondence nature must be excluded from the sample process. The Skip Interval must be applied to all available Reject correspondence cleared volumes from the previous work day only.

    5. After isolating the Reject correspondence cleared volumes, count down the number of cases provided by the Random Start Number script included with the SOI Skip Interval Tool and select that case for the sample. The next case after the Random Start case will be the first case counted when the Skip Interval process is applied.

    6. Count the number of cases up to and including the number given as the Skip Interval. The case associated with the end of this count will be included in the site’s daily sample. Begin the count again with the case immediately behind the one just selected. At some sites correspondence is not separated from non-correspondence work. In this case if the Skip Interval Count ends on a non-correspondence item, do not select it for the sample. Begin the Skip Interval count again with the next available case.

    7. Repeat the above process, progressing through the isolated Reject correspondence volume population, until the Skip Interval is greater than the number of remaining cases. It is critical to count through the entire available population, which may result in collecting a sample size more than the required 12 cases. This is OK. If the available population is insufficient to provide a sample of 12 cases, do not go back to the beginning of the work and resume sampling. Select only the cases identified using the skip interval applied to one time through the available population.

    8. Determine the Floor Volume of cases available for sample selection. To do this:
      Notate the number of cases remaining in the Reject Inventory after your last case has been selected.
      Add this to your Random Start Number.
      Multiply the number of selected sample cases by your daily Skip Interval and add this to your Random Start Number and remaining daily cases.
      Enter the result in Column I of the Skip Interval Tool as the Floor Count Volume. At this point you will have reached the end of your sample selection process for the day.

  4. An optimum sample size of 240 cases per month for each center was established by Statistics of Income (SOI). Be aware of any large discrepancies between the reported Cleared Correspondence Volume shown from the ERS-7745 and the actual number of cleared correspondence cases available in ICO for selection. This may result in an under-sampled condition at the site which could affect sample validity and/or precision. If this condition is present, include a reference to it in the Monthly DCI Comments Tab, (see IRM 3.0.275.11.7, below).

  5. If you discover problems with the Control-D reports, report the problem on KISAM following local procedures.

Methodology

  1. The calculation of Reject Timeliness is a ratio of timely issued correspondence compared against the total number of correspondence cases in a sample. The result of the ratio is weighted against the entire volume of correspondence cases a SPC has processed during each day. The monthly results are tabulated to determine the performance rating for each SPC. Current expected levels of performance are at least 75 percent for IMF and 80 percent for BMF SPCs.

DCI Information

  1. Each month, the site will submit a completed Skip Interval and DCI Tool to Headquarters containing all daily closed case information for that month. One DCI file will be used by the site for the entire fiscal year and include all case data from previous months. Some of the closed cases entered may be late cases sampled around the end of the prior month. When the SPCs submit their Monthly DCI to Headquarters, all current cases entered into it are added to all the cases previously submitted. The list of all cases is used to produce the weighted report. (The weighted report will include all cases that the SPC has submitted to date.)

  2. Previously created reports are not updated. Therefore, sample volume from month to month may not match unless the current month included no cases from the prior month.

DCI Coding for Reject Timeliness

  1. Manual entries are required in all yellow highlighted fields of the template. These fields are mandatory to ensure the Excel file is correctly maintained.

  2. When necessary, request any additional documentation from Files no less than 3 times if required data cannot be obtained thru research. If the document still cannot be secured, the case may be removed from sample and captured on the template as missing documentation if accompanied by the reason it cannot be located in Files in the Monthly Timeliness Detail Report of the DCI Tool.

  3. Exclude cases from the sample with the following characteristics:

    • Suspense action was for a non-correspondence issue

    • Multiple Suspense Dates - Does not apply to Action Codes 211, 212, 213, 215, 224 and 410.

    • No Suspense Date (See IRM 3.0.275.11.5.2 (2) (e))

    • Duplicate Return not being worked in Submission Processing

    • Invalid TIN

    • After QR Letter Not Required

    • Missing Reply/No Reply Date

Skip Interval Tool Tab
  1. The Skip Interval Tool tab is used to identify the individual site and includes daily Reject population and Sample data.

    1. Volume from ERS-7745 - Reflects the Improvement Team entry from 3.0.275.11.2(3) (a) & (b) above.

    2. Floor Volume - Reflects the actual number of Correspondence Documents available for sampling as computed in 3.0.275.11.2(3) (h) above.

DCI Tool Tab
  1. The DCI Tool tab is used to record Daily Individual Sampled Case Results. This date must match the date of the current day’s ERS7745 correspondence volume, previously entered on the Skip Interval Tool tab. (See the note at 3.0.275.11.2.1(3)b.)

  2. Individual Sampled Case Results - Selected cases from the daily population appear beginning in Column B, Line 7.

    1. Select the Sample Selection Date of the sampled cases from the drop-down menu in Column B.

    2. Enter the selected DLNs from each days sample into Column C.

    3. Select the appropriate letter number for each sampled DLN from Column D.

    4. Individual case data is accessed using Command Code TRERS, (an extension of Command Code TRDBV developed specifically for ERS processing), and the Document Locator Number (DLN). Command Code TRERS provides the case Suspense Date. If more than one correspondence suspense date is displayed, the earliest of these dates is entered in the DCI.

    5. If, after review you determine the case contains ACA related correspondence (ERS Status Codes 213, 324, 424, etc.), enter “Yes” in the ACA indicator field located in Column E. Otherwise, enter “No”.

    6. Enter the ERS Suspense Date for each sampled case in Column F. Use Command Code TRERS or Form 4251 to determine the suspense date. If TRERS is unavailable, wait up to 2 additional days for TRERS to become available. If TRERS indicates two or more suspense dates for correspondence, enter the earliest date in your DCI Tool Tab. (Be sure to provide comments with your monthly submission as to why this situation occurred. This is especially important if the case was determined to be untimely.) If after waiting two additional days, TRERS is unavailable or not current, use Command Code SCFTR with Transcript Codes 3-4, (Error Correction to Rejects inventory) MINUS one day.

    7. Enter the Letter Input Date for each sampled case in Column G. Subtract 3 days from the ENMOD date to obtain the actual letter input date. The CRX0316 on Control-D may be used as an alternate source for this date when ENMOD is unavailable. When using this report use the first date field from the right side of the report and subtract 3 days from it, since this date reflects the ENMOD Date. (The LA49602 on Control-D has been permanently deleted as of 4/28/2016.) When determining the letter input date using ENMOD, do not record a date earlier than the suspense date indicated in TRERS or SCFTR. In this instance, the letter input date should equal the letter suspense date. If the letter input date cannot be found on ENMOD, TRERS, a Correspondence Action Sheet and/or SCFTR, and cannot be located on the appropriate Control D report, input the case to your DCI Tool without the Suspense or letter input dates. This case will not figure in any timeliness calculation until these dates are available and entered to your DCI Tool.

    8. The number of Days to Correspond, Column H, is a calculated field based on information entered in the previous 2 columns.

    9. Column I is used to enter the Reply Date (IRS stamped received date) or Return Processed Date (RPD) for each case. If a reply was received, check the taxpayer’s reply for an IRS stamped received date. If present, enter this date in the Reply Date/RPD field. If no IRS stamped received date is present, check IMFOLT for the Return processed date (RPD), enter this date in Column I. Column I will be blank for a No Reply case, see subparagraph j.

      Note:

      for AUSPC Only for ITIN related correspondence cases where a reply was not received, DO NOT enter the RPD. Instead, enter the CCC-U date as indicated on TRDBV.

    10. Column J is used to enter the “No Reply” date. If a reply from the taxpayer is not present, look for Computer Condition Code (CCC) “U” or “8” to indicate No Reply in TRERS. If the case is determined to be a “No Reply” case, check for a “No Reply” stamped date, enter this date in Column J. If the “No Reply” stamped date is not present, use TRDBV or BRTVU to determine the ERS Corrected Date, subtract one day and enter the result in Column J.

      Note:

      Column J will be blank for a Reply case.

    11. Enter the date the case was closed in Column K. Use Command Code SCFTR to get this date. Enter the date the case was closed in Column K. Use Command Code SCFTR to get this date. If SCFTR is not available, or if SCFTR shows multiple dates, without a matching document number, use the ERS Corrected Date on TRERS (minus one day). If neither Command Code is available and the case is for a MEF return, use EUP’s latest ERS Corrected Date (minus one day).

      Note:

      The Employee User Portal (EUP) can be used to view MEF returns required to review a notice or letter. See IRM 3.0.275.1.4 3.0.275.1.4(1) for additional information on EUP.

    12. The number of Days in Rejects, Column L, is a calculated field based on information entered in Columns I through K.

    13. The number of Days in Late to Correspond, Column M, is a calculated field based on information entered in Columns F and G. If the number of days to correspond is 10 or less, this entry will calculate as zero.

    14. The number of Days in Late in Rejects, Column N, is a calculated field based on information entered in Columns I through K. If the number of days to correspond is 10 or less, this entry will calculate as zero.

    15. Column O may be used to record anomalies particular to the sampled DLN, (such as why a Case Closed Date is earlier than a No Reply Date).

  3. Correspondence Received Date / Return Processible Date

    1. IRM 3.10.72.5.7(5) instructs Receipt & Control to always attach envelopes and stamp Received Dates on all replies to IRS initiated mail, such as CP notices, "C" Letters, Forms and Balance Due Notices. The subsequent block in the chart goes even further to say "All correspondence, including taxpayer initiated correspondence/forms." If this date is not present, follow instructions in IRM 3.12.37.24.9 (7) to determine the correct date.

    2. Undeliverable Letters will be coded as a “No Reply”.

    3. When the Taxpayer replies with a Fax transmission, use the machine stamped date on the Fax as the Reply Date. If the Fax is received on a weekend or a holiday, use the following work day’s date as the Reply Received Date.

  4. If a site identifies a change or needs to remove a case that was previously submitted, notify the HQ analyst via e-mail.

Recap (Daily) Tab
  1. The Recap Daily tab combines daily data entered in the Skip Interval Tool and DCI Tool Tabs and presents it in Unweighted Monthly and Daily summaries.

Recap by Letter Type Tab
  1. The Recap by Letter Type tab is a summary of review data for all daily cases in the reporting month, (Reply and No Reply cases).

Monthly Detail Report Tab
  1. The Monthly Detail Report tab is a summary of all defects charged, feedback provided, and documents removed from the sample during the reporting month.

    1. Enter information from untimely cases in this tab. Select the month, letter number and area responsible for the delay from the drop down menus. Include a defect description and the number of days over 10 to complete the case.

    2. Complete the summary of documents removed from the sample for each month, shown in Column J.

Providing Feedback

  1. Follow procedures in IRM 3.0.275.1.6 - Business Results Measures Communication of Defective Case(s) - for providing error data or daily feedback to the responsible functional areas.

  2. Feedback is required on all untimely cases and should be sent to the responsible area if the Monthly DCI tab indicates a case was late for either Correspondence (Column M) or Reject Case Closure (Column N).

Comments

  1. Complete the Comments tab of the DCI by addressing each of the 5 items listed concerning review characteristics at your processing site.

Reporting the Results

  1. All Reject Timeliness reports submitted by the SPCs should use a predetermined naming scheme which includes the SPC name, the month and calendar year (i.e., Austin Rejects Timeliness December 2012).

  2. The SPCs monthly weighted report will be based on the DCIs completed and submitted for a particular (period) month and will include any prior months cases loaded into a current months report.

  3. The monthly weighted report includes all cases submitted to date (at the time the report is run). Included in the weighted report deliverable is a separate tab for each SPC that lists all the cases included in each SPCs weighted results.

  4. The weighted reports are based solely on the cases and the daily volumes that were loaded into the DCI Tools. Prior Month Cumulative information, input by the SPCs, is not used when generating weighted reports.

  5. After case analysis is completed on each case, provide the results of the review to the appropriate Operations and Department Managers. Follow local reporting procedures.

Business Results Measures Communication Record

Business Results Measures Communication Record
RESPONSE DUE DATE:
THIS CASE CONTAINS ONE OR MORE INACCURATE CONDITIONS
OPERATION RESPONSIBLE FOR DEFECT:

DATE:
CASE NUMBER:
SPECIFIC DEFECT:
PROCEDURAL REFERENCE (if applicable):


BRANCH COORDINATOR RESPONSE*

DATE:
SIGNATURE:
PHONE:
COMMENTS:


 

Note:

No response is required if you agree with the defect. The correction of the case must be made within 2 weeks of receipt. If not, the Improvement team will follow-up. A rebuttal must be received by the Response Due Date indicated above. If you have any questions, please call Ext. XXXX. Send responses to: Improvement Team Review, Team XX, Stop#XXXX.

SMART Database Cut-Off Dates and Report Due Dates for all Business Measure Results

The following table shows the FY 2018 cut-off dates.

Sample Month Data Cut-Off Monthly Report Run Narrative to HQ Results Posted by HQ
OCT. 2017 11/22/2017 11/23/2017 11/29/2017 12/05/17
NOV. 2017 12/22/2017 12/23/2017 01/04/2018 01/10/2018
DEC. 2017 01/22/2018 01/23/2018 01/24/2018 01/30/2018
JAN. 2018 02/22/2018 02/23/2018 02/26/2018 03/02/2018
FEB. 2018 03/22/2018 03/23/2018 03/26/2018 03/30/2018
MAR. 2018 04/20/2018 04/23/2018 04/24/2018 04/30/2018
APR. 2018 05/22/2018 05/23/2018 05/24/2018 05/31/2018
MAY 2018 06/22/2018 06/23/2018 06/26/2018 07/03/2018
JUNE 2018 07/20/2018 07/23/2018 07/24/2018 07/30/2018
JULY 2018 08/22/2018 08/23/2018 08/24/2018 08/30/2018
AUG. 2018 09/21/2018 09/23/2018 09/25/2018 10/01/2018
SEPT. 2018 10/22/2018 10/23/2018 10/24/2018 10/30/2018

Check list for Entity, Letters, Greenies, RAIVS and R&C

Analyze all of the following items, if applicable, when doing your review.

Entity Review
1. Is the TIN correct and legible?
2. Are all name lines correct and legible?
3. Is the street name, house number/letter, apartment number/letter, city, state and zip code correct?
4. Is the MFT in the reference area of the letter (top right hand side of IDRS letter) correct?
5. Is the form number correct?
6. Is the tax period correct?
Letters, Greenies, RAIVS and R&C Review
1. Are the chosen fill-ins correct and complete?
2. Was the case appropriately referred?
3. Were Taxpayer Advocate Service (TAS) cases identified and handled correctly?
4. Was letter/taxpayer contact necessary? If not, code error for letter not necessary. No additional coding is necessary.
5. Was the required IRS telephone number provided on the letter?
6. Was a timeframe given for the taxpayer response?
7. When responding to a taxpayer correspondence or inquiry, were all taxpayer issues addressed?
8. Were all IRS issues addressed, including advising the taxpayer of the current balance due when appropriate?
9. Were all appropriate attachments/enclosures included in the Correspondence and letter request?

Note:

If the enclosure was omitted or incorrect an Accuracy error should be charged. See IRM 21.3.3, "Incoming and Outgoing Correspondence/Letters" for enclosure information. If the letter does not indicate enclosed but refers taxpayer to IRS Office, and enclosure is shown, no defect (e.g., 510C- enclosures Notice 363 or 609).

10. Was the letter sent to an authorized Power Of Attorney (POA) or representative?
11. Were all appropriate disclosure regulations and procedures followed?
12. Is the language correct in an open paragraph? No IRS jargon, courteous tone.
13. Were all words capitalized appropriately? Example: The different Operations within Submission Processing should be capitalized (e.g., Customer Service). Code as a Professionalism error.
14. Was proper grammar used?
15. Was correct punctuation used?
16. Was the proper salutation used? Is it in the correct format?
17. Was correct spacing used?
18. Were there any spelling or typographical errors?
19. On hand-written letters or greenies, was all text legible?
20. Were the correct paragraphs selected?
21. Was an apology to the taxpayer included when appropriate?
22. When responding to a taxpayer correspondence or inquiry, does the letter state "this letter is in response to your inquiry of MMDDYYYY?"
23. Was the appropriate closing paragraph used?

Letter Error Rate What and Where Codes

Letter Error Rate What Codes
What Codes Descriptions Explanations
101 Omitted Information is missing - (e.g., para., Name Line, contact name is not complete-showed last name when a courtesy title or first and last name was necessary. Codes to use: WHERE CODE 210, and/or WHERE CODE 214).
102 Incorrect Information is wrong - money amount, (e.g., fill-in amount showed 1,381.00, should be 1,381.03 per return. Street address - apartment number is incorrect).
103 Illegible Unreadable - (e.g., greenies, bad photocopy).
104 Reserved  
105 Unclear Language (not content) used is confusing or not specific - (e.g., systemic error on 12C letter for the para. that shows 1040 or 1040A. We received your correspondence referencing the removal of Form 730 filing requirement).
106 Reserved  
107 Unnecessary Use when letter is not needed, or contains extraneous spacing, punctuation, capitalization or multiple paragraphs providing same information.
108 Incomplete Only use when sentence or paragraph is incomplete. Only WHERE Code 225 or 219 can be used if WHAT Code 108 is used. (validity check will be returned if incorrect WHERE Code is used).
109 Unauthorized Use to identify disclosure issues.
110 Other (Comments requires) (e.g., inappropriate language used/tone)
Letter Error Rate Where Codes
Where Codes Descriptions Explanations/Clarifications
201 TIN Taxpayer Identification Number
202 Name Line 1 1st Name Line
203 Name Line 2/3/4 2/3/4 Name Line
204 Address Address
205 MFT Master File Tax Class
206 Form/Schedule Form and Schedule
207 Tax Period Tax Period
208 Fill-in Use to designate fields within a selective paragraph or other fields that require manual entries, other than contact point, money amounts and date information (there is a code for this).
209 Letter Use to designate a specific letter (e.g., 86C should be 12C, or letter should not have been sent at all).
210 Contact Point Use to designate name/phone number used within a selective/open paragraph.
211 Timeframes/Time Zone Use to designate hours of service for your area.
212 Taxpayer Issues All taxpayer issues not addressed.
213 IRS Issues If used, comments are required (e.g., date stamp on Greenies or advising the taxpayer of the current balance due.)
214 Attachments/Enclosures Attachments or enclosures
215 POA/Personal Rep. Power of Attorney or Rep.
216 Disclosure Disclosure
217 Language/Grammar Language/Grammar
218 Capitalization Capitalization
219 Open Paragraph Use when an open paragraph was manually composed.
220 Punctuation Punctuation
221 Salutation Salutation
222 Spacing Spacing
223 Spelling/Typographical Spelling/Typographical
224 Money amount(s)/Format(s) Use to designate an error in a money amount, includes dollar sign and commas (IRM 2.4.6, covering Command Codes, and see Exhibit 2, for additional clarification).
225 Paragraph Selected/canned paragraphs.
226 Apology Apology
227 Date (Comments required) Includes taxpayer inquiry date, received date, response date (IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates).
228 Closing Ending
229 Request for Signature Signature paragraph missing or signature code is incorrect.
230 Other (Comments required) Other
231 Acronyms/IRS Jargon Acronyms/IRS Jargon

Deposit Error Rate Frequently Asked Questions

Question: What if I am unable to locate the payment after IDRS research has been completed?
Answer: Research the Remittance Transaction Research (RTR) Subsystem for the Form 813 listing. Research the SCCF database using Command Code SCFTR to retrieve posting information. Research for the payment on the Automated Non-Master File (ANMF).

Question: Is it an error if the payment I'm reviewing goes Unpostable?
Answer: If the payment went Unpostable due to a systemic condition and no internal processing error was made, code the case as accurate. If the payment goes Unpostable due a transcription or other internal error, code the case as inaccurate.

Note:

Please see note under IRM 3.0.275.5.3. (1).

Question: How do I code the case if the payment has been placed in Unidentified?
Answer: If the payment could have been properly applied with the information provided by the taxpayer or by further research, charge an error to Receipt and Control.

Question: How do I review a split payment?
Answer: Photocopy all available documents. Enter the earliest Master File tax period information on the DCI; however, show the entire remittance in the Deposit Amount field. When payments are intended for more than one Payment Category (i.e.,, User Fee and Installment Payment), enter the Master File account information on the DCI. Consider the case accurate only if the entire remittance is applied correctly. Indicate "split payment" in the Payment Category field. If you determine that any portion of the payment was misapplied, use What Code "M" on the DCI.

Question: If the posting document is a return, do I need to wait for the return to post to IDRS to consider the case review complete?
Answer: No. The Deposit Error Rate review is focused on the application and deposit of the remittance only.

Non-Master File (NMF) Accounts for Deposit Error Rate

Determine if a Possible NMF account is present:

  1. A TC 130 in Blocking Series 200-299 posted on CC IMFOLE, BMFOLE or ENMOD

  2. “V-” freeze posted on CC IMFOLI, IMFOLT, BMFOLI, BMFOLT, SUMRY or TXMODA

  3. A notice with a “N” after the TIN

  4. A DLN with a tax class of 6

  5. A TC 300 posted to a zero balance MF account

  6. A TC 400 posted

100 percent penalty

Preparer's penalty

53'd Accounts

Social Security Number ending with the letter "N"

23C date (on notices)

Any of the NMF MFT codes and/or Form numbers listed below:

NMF MFT Form Number NMF MFT Form Number
12 1042, 1042S 47 8871-Notice
17 941, 941NMI, 2749 49 8872-Report
19 943 50 4720
20 1040, 1041NMI 56 990-BL
21 1041 66 4720/4720A
22 1041PR 67 990/990EZ
31 1120S 71 CT-1
32 1120 72 CT-2
34 990T 76 5330
35 1065 80 940
36 1041A 81 926
37 5227 96 11C
39 944 97 730
44 990PF 99 8278

Deposit Error Rate Who and What Codes

Deposit Error Rate Who Codes
Who Codes Descriptions
1 Taxpayer (you must enter a description of this type of error in the Comments field)
2 Receipt and Control
3 Data Conversion
4 Input Correction
5 Other
6 Reserved
7 Data Conversion or Receipt & Control -
IRM 3.0.275.5.4. for Data Input Instructions.
Deposit Error Rate What Codes
What Codes Descriptions
A Incorrect MFT
B Not applied to earliest CSED
C Incorrect TIN
D Incorrect money amount
E Incorrect tax period
F Incorrect date
G Reserved
H TC incorrect
I Secondary TC Omitted/Incorrect
J Reserved
K Insufficient Research
L Incorrect Name Control
M Incorrect posting of split payment
N Incorrect posting of multiple payments
O Non-IRS Payee
 

Note:

When evaluating the transaction code...
If your sample does not include a copy of a return or an indication that there was a return, AND it is not obvious there would be a negative impact on the taxpayer, consider either a TC 610 or a TC 670 as being correct.

Refund Timeliness and Error Rate Who, What, and Why Codes

WHO CODES
Who Codes Descriptions
A Taxpayer
B Receipt & Control
C Code & Edit
D ISRP (Data Conversion)
E Error Correction
F Entity Control
G SCRIPS
H Unpostables
I EIF Systemic
J Other Systemic
K IRM/Handbook/Forms
L Tax Practitioner
M Other Campus Area (e.g. district office or area office)
N Other
O Unable to determine
P Other Service Center / Lockbox
R ITIN (AUSPC only)
Z Not included in sample
WHAT CODES
What Codes Descriptions
1 Return
2 First Name Line
3 Second Name Line
4 Address Line
5 City
6 State
7 Zip Code
8 Primary SSN
9 Secondary SSN
10 Primary and Secondary SSN
11 Filing Status
12 Exemptions
13 Dependent SSN
14 Dependent Name
15 Wages
16 Total Income
17 Adjustments to Income
18 Adjusted Gross Income
19 Standard Deduction
20 Itemized Deductions
21 Taxable Income (TXI)
22 Tax Amount
23 Form 2441
24 Child Tax Credit
25 Federal Withholding
26 Backup Withholding Amount
27 EIC
28 Non-Taxable Income Amount
29 Additional Child Tax Credit
30 Refund Amount
31 Direct Deposit Information
32 Credit Elect
33 Signature
34 Form(s) W-2
35 Taxpayer Notice Code
36 Computer Condition Code
37 Offset/Freeze
38 Other
39 Non Refundable Credit
40 Return Processible Date
41 IRS Received Date
42 Excluded from Sample
43 Estimated Payments
WHY CODE
Why Codes Descriptions
AA Omitted
BB Entered in Error
CC Entered Incorrectly
DD Misapplied
EE Not Removed/Routed
FF Computed in Error
GG Incomplete
HH Not Corresponded For
II Incorrect
JJ Entered Illegibly
KK Worked Untimely
LL Other
MM Unnecessary Entry
ZZ Not Included in Sample
NN Offset/Freeze
Professionalism WHO CODES
Who Codes Descriptions
A Taxpayer
C Code & Edit
D ISRP (Data Conversion)
E Error Correction
F Entity Control
G SCRIPS
H Unpostables
I EIF Systemic
J Other Systemic
L Tax Practitioner
N Other
Professionalism WHAT CODES
What Codes Descriptions
2 First Name Line
3 Second Name Line
4 Address Line
5 City
Professionalism WHY CODES
Why Codes Descriptions
AA Omitted
BB Entered in Error
CC Entered Incorrectly
II Incorrect
JJ Entered Illegibly
LL Other
MM Unnecessary Entry

Refund Timeliness and Error Rate EIF/NAP Access Codes


EIF-ACCESS-INDICATOR Codes and Descriptions
NAP-ACCESS-INDICATOR Codes and Descriptions
0 = EIF not accessed 0 = NAP not accessed
1 = EIF was inoperable 1 = NAP was inoperable
2 = Account does not reside on EIF 2 = TIN mismatch on invalid segment (no account)
3 = Name control mismatch on valid segment 3 = Name control mismatch on valid segment
4 = Address mismatch 4 = Address mismatch
5 = Marital filing status different 5 = Marital filing status different
6 = Name control mismatch on the Taxpayer Information File (TIF) 6 = Spouse TIN mismatch
7 = No account on the TIF 7 = 2nd name line is significant
8 = TIF not accessed or inoperable 8 = Name control mismatch on the invalid segment
0 = ERS bypass  
NAP-EIF-RESPONSE INDICATOR
Indicators Description
S Short entity (account present at Master File and a match was made)
P Partial entity (mismatch on IMF Name Control on EIF)
I Intermediate entity (account exists on Master File and only the address information is different)
L Long entity (no account present on Master File or mismatch on name control at Master File or no match on DM-1 tape)
D No tax module or entity exists on Master File, but TIN and Name Control match the DM-1 tape
N Match made on TIN, but Name Control matched on other than current Name Control
F Match made on TIN/Name Control, but filing status code on EIF Access Key is 2 or 7 and EIF/NAP filing status code is 2 or 7

EFT and Direct Deposit Reject Reason Codes

Electronic Fund Transfer Codes
EFT Codes Description
0 EFT (for non-ELF filers) or an ELF filer and the refund has been completed using EFT
1 Financial institution’s RTN or Acct. Number failed input processing validity check (applies only to paper processing)
2 Refer to the IRS e-file reject codes
3 EFT denied because actual refund differs from taxpayer amount and the CAF file indicates POA ro receive refund
4 EFT refused by financial institution (undeliverable), refund issued by check
5 EFT denied because the credit is frozen by an account or module freeze
6 EFT refund after settlement cycle denied
9 IRS e-file return and EFT not requested
DIRECT DEPOSIT REJECT CODES
Reject Codes Description
00 Direct Deposit not requested
07 No DD Allowed
10 DD passed the validity check
21 Missing Routing Transit Number (RTN), all blanks/zeros
23 Invalid RTN—first two digits not in a valid range
24 Invalid RTN—RTN not on Financial Organization Master File Routing Transit Number File (FOMF-RTN-FILE)
25 Invalid RTN—failed internal RTN validity check
31 Missing depositor account number, all blanks/zeros
32 Invalid depositor account number—non-alphanumeric characters present (other than hyphen) present
36 Direct Deposit information is present on Form 8888 and on Form 1040
37 Form 8888 is present and the return contains Injured Spouse information
38 The sum of the deposits requested on Form 8888 does not match the refund amount of Form 1040 and the difference is NOT a math error
41 Prior year return
42 Centralized Authorization File (CAF) indicator authorizes a third party to receive refund
43 Computer Condition Code W present
44 The total tax is zero and withholding/excess Federal Insurance Contribution Act (FICA) is $10,000 or more. Advise taxpayer we are unable to comply with their request for a direct deposit due to programming limitations.
46 Return posted to wrong account.
47 Module contains a TC 971 AC 053
48 Module contains a TC 971 AC 011 (Non-receipt of refund check) or TC 971 AC 850 (Flip direct deposit to paper)
49 Module contains a TC 971 AC 850 (flip direct deposit to paper); the number of direct deposit refunds (3) allowed to the same bank account has been exceeded. CP 53D is issued to the taxpayer as notification.
50 DD rejected by bank; block and serial number “77777” in DLN indicates issuance of paper check.
56 One or more split refund DDs rejected by bank; block and serial number “77777” in DLN indicates issuance of paper check
58 DD rejected by bank; TC 841 with block and serial number:
  • “77711” in DLN indicates a rejection due to name mismatch between the name on the refund and the name on the bank account. CP 53A will be issued advising that the refund may take up to 10 weeks.

  • “77712” in DLN indicates ID Theft where the financial institution has been notified or believes as a result of internal fraud investigation that an ACH credit entry is related to a case where a taxpayer’s identity has been stolen. Letter 5253C will be issued advising that the refund may take up to 10 weeks. In January 2014 this letter was replaced by CP 53B.

  • “77713” in DLN indicates a questionable refund where account character- istics, history, investigation and/or other key markers identified through filters implemented by the financial institution indicate that an ACH credit entry is questionable, invalid, erroneous or obtained through fraudulent filings. Letter 5254C will be issued advising that the refund may take up to 10 weeks. In January 2014 this letter was replaced by CP 53C.

The account will have a P- freeze and will be reviewed automatically by the IVO external leads program. See IRM 21.5.6.4.31 (4), P-Freeze, for additional guidance.
59 Split DD rejected by bank; TC 841 with block and serial number:
  • “77711” in DLN indicates a rejection due to name mismatch between the name on the refund and the name on the bank account. CP 53A will be issued advising that the refund may take up to 10 weeks.

  • “77712” in DLN indicates ID Theft where the financial institution has been notified or believes as a result of internal fraud investigation that an ACH credit entry is related to a case where a taxpayer’s identity has been stolen. Letter 5253C will be issued advising that the refund may take up to 10 weeks. In January 2014 this letter was replaced by CP 53B.

  • “77713” in DLN indicates a questionable refund where account character- istics, history, investigation and/or other key markers identified through filters implemented by the financial institution indicate that an ACH credit entry is questionable, invalid, erroneous or obtained through fraudulent filings. Letter 5254C will be issued advising that the refund may take up to 10 weeks. In January 2014 this letter was replaced by CP 53C.

The account will have a P- freeze and will be reviewed automatically by the IVO external leads program. See IRM 21.5.6.4.31 (4), P-Freeze, for additional guidance.
60 Savings bond purchase request was not allowed because the refund per taxpayer from the posted return is not equal to the refund amount per the computer calculation.
61 Savings bond purchase request was not allowed because the SSN/TIN is on the IRS Liability file.
62 Savings bond purchase request was not allowed because the requested amount was not divisible by $50.
63 Savings bond purchase request was not allowed because the requested amount was more than $5,000.
64 Savings bond purchase request was not allowed because the return contained computer condition code ’F’, ’9’, ’A’ or the word ’DECD’ was present in the current tax year controlling name line.
66 Savings Bond purchase request was not allowed because the name lines contain “&” or other special characters.
67 Savings bond purchase request was not allowed because the beneficiary bond registration is checked on the Form 8888 but the 1st bond name line and the 2nd bond name line are not present.
68 Savings bond purchase request was not allowed because the Form 8888 2nd name line is present but the 1st name line is not present on a MFJ return (FSC2).
69 Savings bond purchase request was not allowed because the 1st and/or 2nd bond name lines are present on the Form 8888 but the amount of the requested bond registration is NOT significant.

Notice Error Submission Processing Notice CP Numbers

The following Submission Processing notices will be included in the accuracy computation of the Notice Business Results Measure. No Spanish Notices will be reviewed.

IMF CP Numbers
CP 01H 12E&G 23 51A
08 13 23R 51B
09 13A 24 51C
10 13M 24R 52
10A 13R 24U 53
10R 14 25 54B
11 14H 25R 54E
11A 14I 27 54G
11M 16 30 54Q
11R 16R 30A 565
12 17 39 566
12A 18 42 567
12M 20 45  
12R 20G    
BMF CP Numbers
101 127 259H
102 128 261
103 131 262
104 131A 264
105 132 265
106 133 266
107 134B 267
108 134R 268
109 138 275
110 145 277
111 CP148A/B 278
112 153 279
113 153 A - H 279A
114 161 280
115 162 281
116 173 284
117 180 285
118 181 286
118E 182 287
123 183 288
124 209 290
125 211 A - E 291
126 250 A - C 292

Notice Error Rate Cycles for Monthly Volumes — 2017/2018 (FY 2018)

MONTH CYCLE 23C DATE CYCLE 23C DATE CYCLE 23C DATE CYCLE 23C DATE CYCLE 23C DATE
Oct. 201737
10/02/17
201738
10/09/17
201739
10/16/17
201740
10/23/17
201741
10/30/17
Nov. 201742
11/06/17
201743
11/13/17
201744
11/20/17
201745
11/27/17
 
Dec. 201746
12/04/17
201747
12/11/17
201748
12/18/17
201749
12/25/17
 
Jan. 201750
01/01/18
201751
01/08/18
201752
01/15/2018
201801
01/22/18Dead Cycle IMF and BMF
201802
01/29/18Dead Cycle IMF and BMF
Feb. 201803
02/05/18 Dead Cycle IMF and BMF
201804
02/12/18 Dead Cycle IMF Only
201805
02/19/18
201806
02/26/18
 
Mar. 201807
03/05/18
201808
03/12/18
201809
03/19/18
201810
03/26/18
 
Apr. 201811
04/02/18
201812
04/09/18
201813
04/16/18
201814
04/23/18
201815
04/30/18
May 201816
05/07/18
201817
05/14/18
201818
05/21/18
201819
05/28/18
 
June 201820
06/04/18
201821
06/11/18
201822
06/18/18
201823
06/25/18
 
July 201824
07/02/18
201825
07/09/18
201826
07/16/18
201827
07/23/18
201828
07/30/18
Aug. 201829
08/06/18
201830
08/13/18
201831
08/20/18
201832
08/27/18
 
Sept. 201833
09/03/18
201834
09/10/18
201835
09/17/18
201836
09/24/18
 

Notice Error Monthly Cut Off Chart - 2017/2018

Monthly Input Cut-Off Date Current Month Cycles Drop Dead Cycles
11/22/17 37 38 39 40 41 28 29 30 31 32  
12/22/17 42 43 44 45   33 34 35 36    
01/22/18 46 47 48 49   37 38 39 40 41  
02/22/18 50 51 52 01 02 42 43 44 45    
03/22/18 03 04 05 06   46 47 48 49    
04/20/18 07 08 09 10   50 51 52 01 02  
05/22/18 11 12 13 14 15 03 04 05 06    
06/22/18 16 17 18 19   07 08 09 10    
07/20/18 20 21 22 23   11 12 13 14    
08/22/18 24 25 26 27 28 15 16 17 18 19  
09/21/18 29 30 31 32   20 21 22 23    
10/22/18 33 34 35 36   24 25 26 27 28  

Notice Error WHO Codes

WHO CODES
1) Taxpayer
2) Receipt and Control
3) Code and Edit
4) ISRP (Data Conversion)
5) Error Correction
6) Suspense Rejects
7) Computer Program/Hardware* (not EIF, or SCRIPTS)
8) SCRIPS Operator
9) IRM/PRP/Forms Instructions*
10) RPS Processing
11) Unpostables
12) Notice Review
13) Accounting (except Accounts Management, Entity Control, Federal Tax Deposit (FTD) Processing)
14) ITIN (AUSPC only)
16) Entity Control
23) Area Office
24) Submission Processing Area Unknown*
25) EIF or NAP systemic problems
26) SCRIPS/ELF/MAG Tape*
27) Quality Review
28) Post Office
29) FMS/RFC
30) SC FTD Processing
31) Outside Processing (Lockbox, etc.)
34) Other Government Agency*
35) Other Accounts Management/Compliance/Campus SC Unknown*
41) Foreign Investment Real Property Tax Act (FIRPTA) (OSPC (Form 8288) or AUSPC (Form 1040NR) Only)
42) Windfall Profit Tax (WPT) (AUSPC Only)
43) Files
45) Notice Review Released Not Reviewed
46) E-File
47) NABR - Postal Data Base
48) Identity Theft Unit

Note:

*Comments are mandatory

Notice Error WHAT Codes

WHAT CODES
101) Omitted/Incomplete
Information/action missing that caused the notice to be wrong. (e.g., TPNC omitted, label, exemption, EITC). Something else was necessary to make the notice accurate.
102) Incorrect
Information/action is wrong on notice. (e.g., wrong TPNC, wrong notice generated, MFT, tax period, Estimated Tax (ES) payment). The notice was wrong based upon the action taken.
103) Illegible
Unreadable (e.g., Name Line, money amounts caused ISRP to enter incorrectly, TIN, tax period). Incorrect action on the notice was due to the return/schedules/forms being illegible.
107) Unnecessary
Something was not needed (e.g., spacing on notice, paragraph within the notice, redundancy).
109) Unauthorized
Disclosure (e.g., notice going to wrong taxpayer, wrong business, wrong spouse).

Notice Error WHERE Codes

WHERE CODES
1) SSN/EIN/ITIN
2) Dependent SSN
3) Name Control
4) First Name Line
5) Second Name Line/AIL (Additional Information Line)
6) APT#/Letter/Suite#
7) Street Line
8) City/State/Zip Code
9) Complete Address Change (entire address)
10) CAF Name
11) CAF Address
12) Blocking Series
13) Received/Correspondence Date
14) Tax Period*
15) Return Processing Code(s) (RPC)*
16) Computer Condition Code(s) (CCC)*
17) Filing Status
18) Dependency Status Indicator
19) Wages
20) Interest/dividends
21) IRA/Pension (IRA - Individual Retirement Account)
22) Unemployment Compensation
23) Social Security Benefit
24) Other Income
25) Total Income
26) Adjustment to Income
27) Adjusted Gross Income (AGI)
28) Age/Blindness Indicator
29) Standard Deduction
30) Exemption(s)
31) Non-Taxable Income
32) Taxable Income (TXI)
33) Child Tax Credit
34) Non-Refundable Credit
35) Advance EIC
36) Federal Withholding
37) Estimated Tax Payment(s)
38) Estimated Tax Voucher
39) Extension to File
40) EITC
41) FICA (Federal Insurance Contribution Act)
42) Additional Child Tax Credit
43) Refundable Credit
44) Tax Amount
45) Overpaid amount
46) Refund
47) Direct Deposit Information
48) Credit Elect
49) Balance Due
50) Payment
51) Check
52) Signature
53) Form(s)**
54) Schedule(s)**
55) Qualifying Dependent Code*
56) Penalty/interest
57) Offset
58) Backup Withholding
59) Reserved
60) FTD Coupon
61) Record of Federal Tax Liability
62) Notice Suppression Indicator (BMF ONLY)
63) Schedule Indicator Code (SIC) (BMF ONLY)
64) Notice (Who Code 12 only)*
65) Label*
66) Standard Text (automated) (Who Code 7 only)
67) TPNC (input text)*
68) Punctuation/Spacing/Indentation
69) Hold/Voiding Notice (intercepting) (Who Code 12 only)
70) Tax Return**
71) Other (EXPOE Code or Comments mandatory)
72) Credit Reduction Amount
73) Reserved
74) Special Processing Code*
75) Form W-7, Lines 4 - 6
76) ITIN Supporting Documents
77) Affordable Care Act
78) Shared Responsibilities Payment

Note:

*Comments Mandatory
**EXPOE Code and Comments Mandatory

Notice Error EXPOE Codes

EXPOE CODES
1) DECD (deceased) 31) Form 1120 61) RTN (routing transit number)
2) Form 2106 32) Form 1120S 62) DAN (depositor account number)
3) Form 2210 33) Form 1128 63) Unnecessary Notice
4) Form 2220 34) Form 2290 64) Additional Child Tax Credit Worksheet
5) Form 2441 35) Form 2553 65) Stimulus Unnecessary Notice
6) Form 6251 36) Form 6627 66) Form CT-1
7) Form 8615 37) Form 8716 67) Education Credit Recaptured
8) Form 8814 38) Form 8832 68) Form 4972
9) Schedule A 39) Form 8869 69) Form 8889
10) Schedule C 40) Untimely 70) Check Digits (entity)
11) Schedule D 41) Stub 71) Form 944
12) Schedule E 42) Form Type 72) Rebate Recovery 2009
13) Schedule EIC 43) Form Title 73) Form 8863, Education Credit
14) Schedule F 44) Wrong Type of Notice (comments mandatory) 74) Form 945
15) Schedule SE 45) Form 941SS 75) Form 1042
16) CIV PEN (Civil Penalty) 46) Estimated Tax Penalty 76) Schedule M
17) Form 11-C 47) FTD Penalty 77) First Time Homebuyer Credit
18) Form 706 48) Failure to File Penalty (01) 78) Correspondence
19) Form 709 49) Failure to Pay Penalty (07) 79) Form 8962
20) Form 720 50) Dishonored Check 80) Form 8965
21) Form 721 51) Interest (09) 81) Form 1095A
22) Form 940 52) Earned Income 82) Form 8941
23) Form 990EZ 53) Filing Requirements 83) Form 1094B
24) Form 941 54) Credit Interest 84) Form 1094C
25) Form 941-PR 55) Form 1065 85) Form 1095B
26) Form 990 56) F940EZ 86) Form 1095C
27) Form 1120C 57) Preparer 87) F730
28) Form 990PF 58) Form 943 88) F1040
29) Form 990T 59) Form 8752 89) Budget
30) Form 1041 60) Header Info.  

Notice Error Type of Error Codes

TYPE OF ERROR CODES
A) Accuracy Error
B) Professionalism Error

Professionalism Errors

The following situations are considered Professionalism errors for the Letter Error Rate, Notice Error Rate, and Refund Error Rate measures. Consider all other errors Accuracy errors, unless otherwise instructed.

Codes Description Letter Error Rate Notice Error Rate Refund Error Rate
1P Punctuation errors (e.g., misplaced or missing comma, period, quotation marks, sentence ends in A.M. or P.M. and a double period is shown, etc.) X X X
2P Extraneous Characters (e.g., "#" , ">" ) present that do not affect interpretability. X X N/A
3P Spacing errors (e.g., no space or more than one space between words, no blank line or too many blank lines between paragraphs, large white spaces in letter body, misaligned dollar signs).

Note:

For the Letter Error Measure, do not charge an error for the 12C signature systemic spacing error.

X X N/A
4P Blocking errors (e.g., paragraphs or columns that don't line up properly). X X N/A
5P Date format. Charge a Professionalism error if date is not in one of the following acceptable formats:
Month, date, year (e.g., May 9, 2001), mm/dd/yy or mm/dd/yyyy. Letter Error coding -WHAT 102, WHERE 227 and comments are mandatory. Also, code a Professionalism error if the format is not consistent throughout the letter

Note:

CRX letters require no entries of slashes or dashes. If other than a CRX letter then one of the formats above should be used.

X X N/A
6P Incorrect telephone number format. Charge a Professionalism error if the telephone number is not in one of the following acceptable formats—
(202) 283–0000, (202)283–0000, 202–283–2000.
X X N/A
7P Discrepancy in designations of "St." , "Rd." , "Ave. " , etc., (e.g., return shows "123 7th St.," notice/letter shows "123 7th Rd." ) if research indicates only one of the addresses exist. For the example above, if research indicates that only 7th St. or 7th Rd. exist in the taxpayer's city, code a Professionalism defect. If both addresses exist, code an Accuracy defect. If you have access to the Internet, you can access a Post Office ZIP Code look-up screen at https://tools.usps.com/go/ZipLookupAction!input.action. If you do not have access to the Internet, Post Office ZIP Code books can be used for research. X X X
8P Minor spelling errors in the street name (e.g., "Greene St." on the return, with "Green St." on notice/letter.) A garbled street name, such as "Gener St." , is an Accuracy defect. X X X
9P Minor spelling errors in city name, when the zip code is correct. (Examples of minor spelling errors: "Carmel" on the return, "Carmell" on the notice/letter; "Spring Vale" on the return, "Springvale" on the notice/letter.) Incorrect city abbreviations, when the zip code is correct. (Examples of incorrect abbreviations: "Fort Walton Beach" on the return, "Fort Walton Bea," on the notice/letter, "Brooklyn, NY" on the return, "Brlyn, NY" on the notice/letter.) Professionalism errors are limited to incorrect spelling. A copy of IRS Document 12019, IRS Addressing Standards, may be obtained by accessing the Media & Publications Intranet web site at http://publish.no.irs.gov/ X X X
10P Mismatches due to shortened first names (e.g., Joe instead of Joseph).

Note:

If name was shortened following IRM guidelines to meet IRS space limitations, do not charge an error.

X X N/A
11P Capitalization errors (e.g., any incorrect use/non-use of capitalization, salutation all caps). X N/A X
12P Undefined Acronyms (other than IRS or IRC). Enter 12P in the comments section. However, if the Acronym was incorrectly defined (e.g., TIN - Taxpayer Identification Number was shown as Tax Identification Number), code an accuracy error. X X N/A
13P MISC-Includes Missing Time designations (e.g., AM/PM), incorrect signature code on letters, Time Zone not capitalized (e.g., CST), incorrect DLNs, minor grammatical errors (e.g., a/an, run on sentence - only if all issues were addressed). If all issues were not addressed/content misleading, code an Accuracy error. For the Letter Error Measure, include specific error information in the Comments section. X X N/A
14P Floating Paragraph — If all information was present, just in the wrong order code a Professionalism error. If an employee number is printed in the middle of the letter/notice without an explanation for what the number represented, code as a Professionalism error. X X N/A
15P Misspelled name line and incorrect middle initial. Exception: If the first four characters of the last name (primary or secondary) is incorrect, code as an accuracy error. X X X

Interchangeable city-suburban names will not be coded as Professionalism or Accuracy errors. If during the entity review, the city is different than what is shown on the return, but the zip code matches, review the Zip Code Directory to determine if the city is acceptable. The main Post Office could have a list of associated stations and branches. Determine if the city is listed under a main Post Office. If research of the specific PO Box or street address reflects the same zip code, no error will be coded. For example: Under the main Post Office of Cincinnati, Ohio, there is a list of associated stations and branches. These stations and branches are broken down into specific zip codes. A letter to a specified St. Bernard address (PO Box or street) uses either St. Bernard or Cincinnati with the zip code 45216 on the envelope. The letter can be correctly delivered. No error or Professionalism error should be charged.

Missing middle Initial will not be coded as an Accuracy or Professionalism error. If incorrect, code as a Professionalism error.

IMF and BMF Refund Interest WHO Codes

WHO CODES
1. Taxpayer
2. Receipt and Control
3. Code and Edit
4. ISRP (Data Conversion)
5. Error Correction
6. Entity Control
7. Rejects
8. Unpostables
9. EIF Systemic
10. Other Systemic
11. IRM/Handbook/Forms
12. Tax Practitioner
13. Service Sites
14. Other
15. Unable to Determine
16. FP (full-paid changed to Refund Return)
17. QRDT (Questionable Refund Detection Team) (Criminal investigation Branch)
18. Lockbox
19. Numbering
20. Notice Review
21. Field Office/Area Office
22. Code Not Valid for FY17
23. Other Campus Area
24. Other Service Center/Campus
25. Mail/Post Office
26. Files
27. Accounting
28. SCRIPS
29. EFDS (Electronic Fraud Detection System)
30. RICS/IVO
31. IDT (Identity Theft)

IMF and BMF Refund Interest WHAT Codes

WHAT CODES
1. Return 42. Missing Schedule Information
2. First Name Line 43. Estimated Tax Penalty
3. Second Name Line 44. 1st Quarter ES payments
4. Address Line 45. Previous Tax Year Credit
5. City 46. Return Processible Date
6. State 47. Alternative Minimum Tax
7. Zip Code 48. Other
8. Primary SSN 49. Payment
9. Secondary SSN 50. Entity
10. Primary and Secondary SSN 51. EIN
11. Filing Status 52. MFT
12. Exemptions 53. Tax Period
13. Dependent SSN 54. FYM (Fiscal Year Month)
14. Dependent Name 55. DLN
15. Taxable Wages 56. Action Code
16. Total Income 57. Transaction Code
17. Adj/Deductions to Income 58. Correspondence Received Date
18. Adjusted Gross Income 59. Mail Delivery
19. Standard Deductions 60. Routing
20. Itemized Deductions 61. Batching
21. Taxable Income (TXI) 62. Social Security/Wages/Tips
22. Tax Amount 63. Medicare Wages
23. Form 2441 64. Credit Reduction Amount
24. Child Tax Credit 65. Tentative FUTA (Federal Unemployment Tax Act) Credit
25. Federal Withholding 66. Fuel Claims
26. Backup Withholding Amount 67. State Death Tax Deduction
27. Advanced EIC 68. EFTPS (Electronic Federal Tax Payment System)
28. Non-Taxable Income Amount 69. Extension Payment
29. Additional Child Tax Credit 70. Reply to Correspondence
30. Refund Amount 71. FTD Penalty
31. Direct Deposit Information 72. Manual Refund
32. Credit Elect 73. Manual Tax Computation
33. Signature 74. Schedule/Form
34. Form(s) W-2 75. Dead Cycles
35. Estimated Tax Payments/FTD's 76. Credit Transfer
36. Taxpayer Notice Code 77. Case Closure
37. Computer Condition Code 78. Filing Requirements
38. Offset/Freeze 79. Cobra (Consolidated Omnibus Reconciliation Act) Payments (Form 941)
39. Received Date/Date Stamp 80. Amended Return
40. Remittance with Refund 81. IRS Number (Form 720)
41. Deceased Taxpayer Information  

IMF and BMF Refund Interest WHY Codes

WHY CODES
1. Omitted Action 26. Deleted in Error
2. Entered in Error 27. Incorrect Indication (of refund)
3. Entered Incorrectly 28. Missing
4. Misapplied 29. Unnecessary Correspondence
5. Computed in Error 30. Incorrect Form Edition
6. Computed Incorrectly 31. Untimely
7. Not Claimed 32. Excess Time to Post
8. Incomplete 33. Transshipped
9. Corresponded for 34. Received Late
10. Incorrect Action 35. Completed in Error
11. Entered Illegibly 36. Offset to Balance Due Module
12. Corresponded for (incorrectly) 37. Sent to the Wrong Processing Campus
13. Misapplied Payment 38. Received From Another Campus/ Field Office
14. Failure to Date Stamp 39. Other
15. Missort 40. Program Error
16. Overpayment 41. Unclear/Conflicting IRM instructions
17. RPD not Input 42. No IRM Procedure to Address Issue
18. RPD not Edited 43. Received Date Changed Due to Systemic Problems
19. Late Processed 44. Unable to Secure Return
20. Edited Out 45. Payment on Credit Not Verified
21. Not Transcribed 46. Payment Transferred from X-Ref Unnecessarily
22. Not Included in Sample 47. 3-CRD Not Edited
23. Multiple Entries 48. Changed
24. Illegible 49. Resequencing
25. Slipped Field (ISRP)  

Fiscal Year 2018 Refund Interest Processing Cycles

Month Cycles
October 201740
201741
201742
201743
November 201744
201745
201746
201747
201748
December
201749
201750
201751
201752
January
IMF dead cycles 201701 through 201703. BMF 201701 through 201702.
201801
201802
201803
201804
February 201805
201806
201807
201808
March 201809
201810
201811
201812
201813
April
201814
201815
201816
201817
May 201818
201819
201820
201821
201822
June
201823
201824
201825
201826
July
201827
201828
201829
201830
August 201831
201832
201833
201834
201835
September
201836
201837
201838
201839
October 201840
201841
201842
201843
November 201844
201845
201846
201847
201848
December
201849
201850
201851
201852

Erroneous Refund Identified Sheet

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