3.11.6 Data Processing (DP) Tax Adjustments

Manual Transmittal

October 19, 2022

Purpose

(1) This transmits revised IRM 3.11.6, Returns and Documents Analysis - Data Processing (DP) Tax Adjustments.

Material Changes

(1) IRM 3.11.6.1.6 (1), Acronyms - Qualified Widow(er) and QW were replaced with Qualified Surviving Spouse and QSS here and throughout the rest of the IRM.

(2) IRM 3.11.6.2 (3), General Form 1040-X Information - Added tax year 2022 information and removed tax year 2018 and prior information.

(3) IRM 3.11.6.2.1 (6 and 7), Processing Time Frames and Suspense Time Frames - Corrected the name of the area that scans cases and the peak time frame for I/O cases.

(4) IRM 3.11.6.2.1.1 (2), 1040-X Suspense Activity Codes - Removed ACA related suspense instructions.

(5) IRM 3.11.6.2.2 (1), Computer Paragraph (CP) Notices - Added tax year 2022 information and removed tax year 2017 information.

(6) IRM 3.11.6.3.2 (6), Taxpayer Identification Number (TIN) - Removed tax year 2018 and prior information.

(7) IRM 3.11.6.3.5 (1), Processing Presidential Election Campaign Fund (PECF) Requests - Added tax year 2022 information and removed tax year 2018 information.

(8) IRM 3.11.6.4.6.1, TAO 2021 (Austin Only) - This subsection has been deleted because it is no longer needed.

(9) IRM 3.11.6.6.2 (2, 5, and 8), Disaster Claims - Removed tax year 2017 and prior disaster instructions.

(10) IRM 3.11.6.6.2.1 (7), Processing a Disaster Claim - Removed 2018 and prior disaster instructions.

(11) IRM 3.11.6.6.3 (12, 13, and 14), Carryback/Carryforward - Removed tax year 2018 and prior instructions.

(12) IRM 3.11.6.6.5 (1), Statute Review - Removed COVID-19 information and updated the statute year.

(13) IRM 3.11.6.6.5.1 (9), Processing Statute Cases - Removed tax year 2017 and prior information.

(14) IRM 3.11.6.6.6 (4), Taxpayer Advocate Service (TAS) Cases - Specified expedite routing destination.

(15) IRM 3.11.6.6.10.3 (2), Office of Fraud Enforcement (OFE)- Suspicious Case Referral - The routing instructions were updated to ensure the cases are routed to the most current location.

(16) IRM 3.11.6.7 (7), Routing Guide - Additional terminology was added to help identify routing conditions.

(17) IRM 3.11.6.8.4, MEFP and MEFS Secure Messaging and E-fax Routing - Removed instructions specific to telework.

(18) IRM 3.11.6.9.2.6, Affordable Care Act (ACA) Overview - Deleted subsection because PTC is the only remaining ACA element that can be reported on Form 1040-X.

(19) IRM 3.11.6.9.2.6.2, Shared Responsibility Payment - Deleted subsection since coverage checkbox has been removed from Form 1040-X.

(20) IRM 3.11.6.9.2.6.2.1, Adjusting the Shared Responsibility Payment (SRP) - Deleted subsection because SRP is no longer reported

(21) IRM 3.11.6.9.2.6.3, Form 8965, Health Coverage Exemptions - Deleted subsection because SRP is no longer reported.

(22) IRM 3.11.6.9.2.6.4, Changes to Form 8965, Health Coverage Exemptions - Deleted subsection because SRP is no longer reported.

(23) IRM 3.11.6.9.7, Correspondence for Estimated Tax Penalty (Letter 369C) - New subsection to address estimated tax penalty correspondence.

(24) IRM 3.11.6.9.8, Correspondence for Excess Social Security and Railroad Retirement Tax (Letter 404C) - New subsection to address Excess Social Security and Railroad Retirement Tax correspondence.

(25) IRM 3.11.6.9.9, Correspondence for Dependent Documentation (Letter 3050C and Letter 3050SP) - New subsection to address Dependent Documentation correspondence.

(26) IRM 3.11.6.10.2 (2), Paper Case Correspondence Table of Issues - Removed Schedule LEP instructions since correspondence will be sent using Letter 178C.

(27) IRM 3.11.6.11, Updating Taxpayer Information Using CC ENMOD - New subsection to separate Command Code ENMOD adjustments.

(28) IRM 3.11.6.11.1 (17), Entity Changes - Removed tax year 2017 information.

(29) IRM 3.11.6.11.2 (2), Schedule LEP, Request for Change in Language Preference - Made note in paragraph 2 it’s own paragraph and removed Form 8009-A correspondence instructions so all Schedule LEP correspondence is sent using Letter 178C.

(30) IRM 3.11.6.12, Personal Exemption or Dependent Changes - Combined the Dependent Status: 2018 - 2025 subsection and Exemption or Dependent, and deleted those subsections.

(31) IRM 3.11.6.12.1 (7), Protecting Americans from Tax Hikes (PATH ACT) - Removed tax year 2015 instructions.

(32) IRM 3.11.6.12.2 (5), TIN Requirements for Exemptions and Credits - removed tax year 2017 instructions.

(33) IRM 3.11.6.12.6, Command Code DDBCK (Dependent Database Check) - Removed date error instructions related to the pandemic.

(34) IRM 3.11.6.13 (2), Specific IRM Adjustments - Added CC IRPTR instructions.

(35) IRM 3.11.6.13.1.1, Math Error Response - Removed tax year 2017 instructions.

(36) IRM 3.11.13.2 (2), Income and Deductions Line 1 through Line 5 - Renamed the subsection (formerly Income and Deductions) and deleted table for different tax years.

(37) IRM 3.11.6.13.2.1.1 (11), Earned Income - Removed tax year 2018 and prior information.

(38) IRM 3.11.6.13.2.1.6 (2 and 3), Military Family Relief Act (Line 1) - removed tax year 2018 and prior information.

(39) IRM 3.11.6.13.2.1.7 (9), Form 8917, Tuition and Fees Deduction - Tax Year 2020 and Prior (Line 1) - Renamed the subsection (formerly Form 8917, Tuition and Fees Deduction -(Line 1)) and removed tax year 2018 and prior information.

(40) IRM 3.11.6.13.2.1.8 (3 and 4), Student Loan Interest Deduction (Line 1) - Added tax year 2022 information.

(41) IRM 3.11.6.13.2.1.9 (2 and 3), Form 3903, Moving Expenses (Line 1)- Removed tax year 2018 and prior information.

(42) IRM 3.11.6.13.2.1.10 (1, 2, and 4), Form 2106, Employee Business Expenses (Line 1) - Removed prior year instructions.

(43) IRM 3.11.6.13.2.2.1 (2, 3, and 4), Standard Deduction - Added tax year 2022 deduction amounts and removed tax year 2018 and prior amounts.

(44) IRM 3.11.6.13.2.2.1.1 (1), Non-itemized Charitable Contribution Tax Years 2020 and 2021 Only - Updated title and processing instructions to specify the applicable tax years.

(45) IRM 3.11.6.13.2.2.2, Itemized Deductions (Line 2) - Removed tax year 2017 information.

(46) IRM 3.11.6.13.2.3, Line 4a - Moved instructions to the new Personal Exemption and Dependent Changes subsection. Then renamed this subsection (formerly Exemptions (Line 4a)) and designated it as reserved to mirror the Form 1040-X.

(47) IRM 3.11.6.13.3.1 (1), Tax - Calculation of Tax Liability Methods (Line 6) - Added Form 2555-EZ instructions.

(48) IRM 3.11.6.13.3.2.1 (3), Form 2441, Credit for Child and Dependent Care Expenses - Added tax year 2022 information.

(49) IRM 3.11.6.13.3.2.3, Form 8863 (2 and 11), Education Credits - Added tax year 2022 information.

(50) IRM 3.11.6.13.3.2.6 (3, 4, and 7), Child Tax Credit (CTC) - Added tax year 2022 information.

(51) IRM 3.11.6.13.3.3, Line 9 - New subsection designated as reserved to mirror the Form 1040-X

(52) IRM 3.11.6.13.3.4.2 (3), Self-Employment (SE) Tax (Line 10) - Added tax year 2019 and prior information to prevent unnecessary correspondence.

(53) IRM 3.11.6.13.4.1 (4), Federal Income Tax Withholding (Line 12) - Added work assumed SSN and ITIN research instructions.

(54) IRM 3.11.16.13.4.1.1 (2), Excess Social Security and Railroad Retirement Tax Act (RRTA) - Added tax year 2022 information, removed tax year 2017 information, and moved correspondence instructions to a new subsection.

(55) IRM 3.11.6.13.4.2.1, Estimated Tax Penalty - Rearranged subsection and moved correspondence instructions to a new subsection.

(56) IRM 3.11.6.13.5 (5), Earned Income Credit (EIC) - Line 14 - Removed tax year 2017 and prior disaster instructions.

(57) IRM 3.11.6.13.5.4 (5), Adjusting the Earned Income Tax Credit (EITC) - Added tax year 2022 information and removed tax year 2018 and prior.

(58) IRM 3.11.6.13.6.1.2 (2), CP 08, Additional Child Tax Credit, and Form 15110 - removed tax year 2018 and prior instructions.

(59) IRM 3.11.6.13.6.2 (5), American Opportunity Tax Credit (AOTC) Refundable Portion - Added tax year 2022 information.

(60) IRM 3.11.6.13.6.9 (1 and 2), Refundable Child and Dependent Care Credit - Tax Year 2021 - Renamed subsection (formerly Refundable Child and Dependent Care Credit), added CAT-A instructions, and the maximum credit amounts.

(61) IRM 3.11.6.13.7, Overpayment Amount on This Amended Return (Line 21) - New subsection to help determine the amount to be input with IRN 872.

(62) IRM 3.11.6.13.7.1, Direct Deposit - New subsection with processing instructions to address direct deposit requests.

(63) IRM 3.11.6.13.8, Corresponding on Direct Deposit Issues - Subsection was deleted and the instructions were incorporated in the new Direct Deposit subsection.

(64) IRM 3.11.6.14.2 (2), Integrated Data Retrieval System (IDRS) Transaction Codes - Added the transaction code and action code for direct deposit.

(65) IRM 3.11.6.14.3 (3), Transaction Codes (TC), Item Reference Numbers (IRN), and Credit Reference Numbers (CRN)- Renamed the subsection, removed SRP and coverage checkbox IRNs, and added the IRN used when inputting an adjustment with a direct deposit request.

(66) IRM 3.11.6.15 (7), Form W-7 and ITIN Research (Austin Only) - Removed IRN 887 instructions.

(67) Editorial changes have been made throughout the IRM to:

  • Reorganize the IRM without changing any substantive content or meaning. Sections flow in processing order and follow the Form 1040-X so tax examiners (TEs) can easily find needed information.

  • Correct spelling and grammatical errors.

  • Add or correct references citations and links to the forms that are currently in the IRM so tax examiners can access the forms more readily.

  • Update information more subject to frequent changes such as queue numbers, C-letter paragraphs and Form 8009-A paragraphs, tax years and line-items on forms as we are going into a new tax filing season.

  • Update organizational terms, titles, and acronyms that are relevant for the 1040-X TEs.

  • Convert graphics to text and converting text to tables so that TEs will better understand our processes.

  • Improving the quality of an existing graphic or adding alternative text.

Effect on Other Documents

IRM 3.11.6, dated November 04, 2021 (effective January 1, 2022), is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs): 22S0002 dated 01/03/2022, 22U0259 dated 02/10/2022, 22U0290 dated 02/18/2022, 22U0326 dated 03/02/2022, 22U0625 dated 05/18/2022, 22U0643 dated 05/24/2022, 22U0663 dated 05/31/2022, 22U0752 dated 06/22/2022, 22U0766 dated 06/27/2022, 22U0820 dated 07/19/2022, 22U0847 dated 07/28/2022, 22U0863 dated 08/03/2022, 22U0935 dated 09/07/2022, 22U0961 dated 09/21/2022, and 22U0970 dated 09/23/2022.

Audience

Wage and Investment Submission Processing Tax Examiners

Effective Date

(01-03-2023)


James L. Fish
Director, Submission Processing
Wage and Investment

Program Scope and Objectives

  1. Purpose: This IRM covers Form 1040-X, Amended U.S. Individual Income Tax Return, Computer Paragraph (CP) CP 08, You May Qualify for a Refund From the Additional Child Tax Credit, CP 09, You May Be Eligible for the Earned Income Credit (EIC), and CP 27, You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet, processing procedures for Integrated Data Retrieval System (IDRS) and Integrated Submission and Remittance Processing (ISRP) input by Submission Processing (SP).

  2. Audience: These procedures apply to SP 1040-X employees such as Supervisory Tax Examining Technicians, Lead Tax Examining Technicians, and Tax Examining Technicians, who are responsible for the processing amended tax returns and related correspondence.

  3. Policy Owner: Director, Submission Processing

  4. Program Owner: Submission Processing, Post Processing Section, Specialty Programs Branch

  5. Primary Stakeholders: SP 1040-X employees, Accounts Management (AM), Small Business/Self-Employed (SBSE), Large Business and International (LB&I), Return Integrity Compliance Systems (RICS), Chief Financial Officer (CFO), Taxpayer Advocate Service (TAS), Chief Counsel, Information Technology programmers, Compliance, Submission Processing (SP)

  6. Program Goals: This IRM provides the fundamental knowledge and procedural guidance for employees that work Form 1040-X. By following the processes and procedures provided in this IRM, employees will adjust tax accounts using documents provided by the taxpayer in a manner that follows IRS policy and procedures while promoting the best interests of the Government.

Background

  1. Employees in the Submission Processing (SP) 1040-X organization:

    • Control paper filed Form 1040-X, Amended U.S. Individual Income Tax Return, cases on IDRS and input of the TC 971 AC 120

      Note:

      E-filed and scanned amended returns are controlled systemically.

    • Perform a preliminary review of Form 1040-X

    • Screen, sort, route, and prioritize the forms for processing

    • Process Form 1040-X using AMS, CIS, EUP, RRD, IDRS, and IAT tools

    • Input specific Individual Master File (IMF) Adjustments

    • Correspond for missing required forms and signatures

    • Aid in determining fraud and frivolous positions

    • Input adjustments from CP Notices

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury regulations.

    • IRC 6201(a)

    • IRC 6213(b)

    • IRC 6402(a)

    • IRC 6511

    • Protecting Americans from Tax Hikes Act (PATH Act) enacted December 18, 2015

    • The Disaster Tax Relief and Airport and Airway Extension Act of 2017, enacted on September 29, 2017

    • The Tax Cuts and Job Act (TCJA) enacted on December 22, 2017

    • The Bipartisan Budget Act of 2018 enacted February 9, 2018

    • The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, enacted March 27, 2020

    • The Consolidated Appropriations Act, 2021, enacted December 27,2020

    • American Rescue Plan Act of 2021, enacted March 11, 2021

Roles and Responsibilities

  1. The Director of Submission Processing is responsible for monitoring operational performance for the Submission Processing campuses.

  2. The Operations Manager is responsible for monitoring operational performance.

  3. The Team Managers and Leads are responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. Employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Management and Review

  1. Program Reports: ERS Draft language - System control reports are on the Control-D, WebAccess (CTDWA).

  2. Program Effectiveness: Program effectiveness is determined by Submission Processing’s employees successfully using IRM guidance to perform necessary account actions and duties. The following are used to ensure program effectiveness:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial reviews

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager.

Program Controls

  1. Federal Managers Financial Integrity Act (FMFIA) of 1982 requires federal agency executives periodically review and annually report on the agency's internal control systems.

  2. The Government Accountability Office (GAO) sets forth the standards for an effective internal control system for federal agencies in the Standards for Internal Control in the Federal Government.

  3. Systemic controls are embedded in the Integrated Automation Technologies (IAT) tools and the Integrated Data Retrieval System (IDRS).

Acronyms

  1. Acronyms commonly used include the following:

    Acronym Definition
    AC Action Code
    AIMS Audit Information Management System
    AM Accounts Management
    AMS Account Management Services
    AQC Automated Questionable Credit (RIVO)
    ASED Assessment Statute Expiration Date
    ATIN Adoption Taxpayer Identification Number
    BS Blocking Series
    CC Command Code
    CIS Correspondence Imaging System
    CRN Credit Reference Number
    DDBCK Dependent Database Check
    DUPOL DUPlicate TIN OnLine
    EIP Economic Impact Payment
    EITC Earned Income Tax Credit
    ERO Electronic Return Originator
    EUP Employee User Portal
    HC Hold Code
    HOH Head of Household
    IAT Integrated Automation Technologies
    IDRS Integrated Data Retrieval System
    IMF Individual Master File
    IRN Item Reference Number
    ITIN Individual Taxpayer Identification Number
    FS Filing Status
    MAGI Modified Adjusted Gross Income (always greater than the AGI)
    MFJ Married Filing Joint
    MFS Married Filing Separate
    MFT Master File Tax
    NC Name Control
    NSD No Source Document
    O/S Original Signature
    ODC Credit for Other Dependents
    PIN Personal Identification Number
    POA Power of Attorney
    QND Qualifying Non-Dependent
    QSS Qualifying Surviving Spouse
    RC Reason Code
    RRD Return Request Display
    RSED Refund Statute Expiration Date
    RTS Real Time System
    SC Source Code
    SDI Source Document Indicator
    SP Submission Processing
    SSN Social Security Number
    TC Transaction Code
    TCD Technical Communication Document
    TIN Taxpayer Identification Number

  2. For a comprehensive listing of any IRS acronyms, please refer to the Acronym Database.

Related Resources

  1. Websites and electronic tools used to process adjustments include:

    • Accounts Management Services (AMS)

    • Employee Use Portal (EUP)

    • Correspondence Imaging System (CIS)

    • Integrated Automation Technologies (IAT)

    • Integrated Data Retrieval System (IDRS)

    • Interactive Tax Law Assistant (ITLA)

    • Modernized e-File Return Request Display (RRD)

    • Servicewide Electronic Research Program (SERP)

    • Servicewide Notice Information Program (SNIP)

    Note:

    References to tools and websites used are not intended to be exhaustive or complete. See the training materials, job aids, and local procedures for more Information.

  2. Additional CIS information, including the CIS Performance Guide (Course Number 6902c-203 CSR Guide), can be found under the Local/Sites/Other tab on SERP, followed by the Correspondence Imaging System (CIS) tab. The CSR Guide provides additional explanations, information, and instructions.

  3. RRD is accessed through EUP. The RRD application displays specific tax return and status information for tax returns/extensions processed by the MeF application. This application allows IRS employees to view 100% of the data transmitted on MeF tax returns/extensions (including attachments) in a format that resembles paper forms.

  4. IRM instructions will take precedence over any instructions, directions or default inputs the IAT tools provide. If specific IRM instructions are not present, accept the IAT Tool results.

  5. The IAT tools used are:

    • ACT ON

    • Address

    • Code Search Index (CSI)

    • Credit Transfer

    • eClerical

    • Fill Forms

    • IAT

    • Letters

    • Name Search

    • Quick Command Code (QCC)

    • REQ54

    • REQ77

    • RESULT

    • Stop Refund (NOREF)

    • xMend

  6. All SP 1040-X tax examiners use the following IDRS command codes to process amended returns. See the IDRS Command Code Job Aid for detailed information on the command codes.

    Command Codes required for all Tax Examiners Additional Command Codes required for all Lead and Quality Review Tax Examiners
    • ACTON

    • ADD24

    • ADD34

    • ADD48

    • ADJ54

    • AMDIS

    • BMFOL

    • CFINK

    • DDBCK

    • DDBKD

    • DRT24

    • DRT48

    • DUPED

    • DUPOL

    • EICMP

    • ENMOD

    • ENREQ

    • ERINV

    • FFINQ

    • FIEMP$

    • FINDS

    • FRM34

    • FRM77

    • FTBOL

    • IMFOL

    • INCHG

    • INOLE

    • IRPTR

    • LETER

    • LPAGD

    • LPAGE

    • MESSG

    • MFREQ

    • NAMEB

    • NAMEE

    • NAMEI

    • NAMES

    • PGNUM

    • REQ54

    • REQ77

    • RTVUE

    • SFDISP

    • SUMRY

    • TERUP$

    • TPIIP

    • TRDBV

    • TRDPG

    • TXCMP

    • TXMOD

    • UPTIN

    • ESTAB

    • QRACN

    • QRADDG

    • RVIEW

Document Perfection Operation (DPO) Submission Processing (SP) 1040-X Organization Function Program (OFP) Information

  1. SP 1040-X OFP codes are used for reporting work closed by individual Tax Examiners (TEs) and clerical staff.

  2. SP 1040-X OFP codes are used in conjunction with the weekly WPC (Work Planning and Control) reporting system.

  3. The following represent the codes to be used for reporting the work performed:

    Work Type ... OFP...
    MeF (MEFP)
    • 710-44490 - 1040-X MeF processing

    Paper cases scanned into CIS (MEFS)
    • 710-44450 - 1040-X scan processing

    • 710-44452 - W-7 scan processing (Austin only)

    Paper
    • 710-44450 - 1040-X processing

    • 710-44452 - W-7 processing (Austin only)

    • 710-44456 - 1040-X Bypass to AM

    • 710-44458 - Transship

    CP Notices
    • 710-40000 - CP 27

    • 710-40002 - CP 09

    • 710-40003 - CP 08

    Scanned CP Notices
    • 710-40000 - CP 27

    • 710-40002 - CP 09

    • 710-40003 - CP 08

    Clerical
    • 790-44450 - Controlling cases

    • 550-59600 BBTS

  4. For additional information regarding OFP codes, refer to IRM 3.30.20, Work Planning and Control - Organization, Function, and Program (OFP) Codes.

Correspondence Imaging System (CIS) Roles

  1. Each site will designate the employees to be assigned to one of the following roles.

    1. Site User Manager (SUM)

    2. Back-up SUM (BSUM)

    3. Manager

    4. Lead

    5. Tax Examiner

    6. Clerk

  2. The SUM:

    • Receives all MEFP and MEFS cases assigned by the CIS system to their site.

    • Acts as the generic queue for cases awaiting distribution to 1040-X TEs.

    • Has the ability to see all CIS profiles for the site and can update all profiles for site.

    Caution:

    You must notify the headquarter 1040-X analyst immediately upon learning the current SUM will no longer hold a position with SP 1040-X duties. This must be done to ensure case inventory is not interrupted.

  3. The BSUM:

    • Has the ability to see all CIS profiles for the site and can update all profiles for site.

    • Can distribute MEFP and MEFS cases to a SUM, BSUM, manager, lead, and tax examiner.

  4. The manager:

    • Has the ability to see all CIS profiles for their employees and can update their profiles.

    • Can distribute MEFP and MEFS cases from the SUM to a manager, lead, and tax examiner.

  5. The lead:

    • Has the ability to see all CIS profiles for their employees and can update their profiles.

    • Can distribute MEFP and MEFS cases from the SUM to a manager, lead, and tax examiner.

    • Can process MEFP and MEFS cases.

  6. The tax examiner processes cases assigned to them by the:

    • SUM

    • BSUM

    • Manager

    • Lead

  7. The clerk:

    • Can scan and validate documents.

    • Can do research on CIS cases.

General Form 1040-X Information

  1. An individual taxpayer may file a Form 1040-X, Amended U.S. Individual Income Tax Return, to correct Form 1040, U.S. Individual Income Tax Return, Form 1040-SR U.S. Tax Return for Seniors, and Form 1040-NR, U.S. Nonresident Alien Income Tax Return. By filing an amended return, taxpayers may add, delete, update, or change tax information reported on their original tax return. Taxpayers may also amend amounts adjusted by the IRS.

    Note:

    Taxpayers may file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to request an extension to file their original return. An extension posts as a TC 460. If a loose Form 4868 is received, route to batching.

  2. Amended returns can be filed on paper or e-filed. Certain amended returns received on paper may be scanned into the Correspondence Imaging System (CIS) to be processed by Submission Processing (SP) 1040-X tax examiners.

    Note:

    There are differences when processing cases depending on the format. The differences are in how a case is sent to another area, type of correspondence sent, and how the case adjustment is input into the Integrated Data Retrieval System (IDRS).

  3. Form 1040 has been redesigned:

    • For tax year 2022, the form has been redesigned to add certain items to the Form 1040 and Form 1040-SR . Schedules 1 through 3 have also been redesigned.

    • For tax year 2021, the form was redesigned to add certain items to the Form 1040 and Form 1040-SR. Schedules 1 through 3 have also been redesigned.

    • For tax year 2020, the form was redesigned to add certain items to the Form 1040 and Form 1040-SR. Schedules 1 through 3 have also been redesigned.

    • For tax year 2019, the form was redesigned to consolidate information into Schedules 1 through 3. Additionally, a new Form 1040-SR, U.S. Income Tax Return for Seniors, was introduced for taxpayers over 65 years of age.

  4. All references to line numbers are for the current revision of the form or schedule unless otherwise specified.

  5. Page 1 of Form 1040-X contains three columns to help taxpayers calculate changes:

    1. Column A, Original amount, shows amounts originally claimed by the taxpayer, amounts adjusted by the IRS (math error on original return), or amounts adjusted from a previously filed Form 1040-X for the same tax period.

    2. Column B, Net change, shows the amount of change (increase or decrease) for each line the taxpayer is changing. Taxpayers are instructed to show decreases in parenthesis, explain each change in the Explanation of Changes on page 2 of Form 1040-X or attached statement and attach any schedule and/or form related to the change.

    3. Column C, Correct Amount, shows the amended figures.

  6. 1040-X tax examiners will also process the following Computer Paragraph (CP) notices.

    • CP 08, You May Qualify for a Refund From the Additional Child Tax Credit.

    • CP 09, You May Be Eligible for the Earned Income Credit (EIC).

    • CP 27, You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet.

    Note:

    These CP notices are generated from criteria on the original return. Generally, a completed CP notice is considered an informal claim. See IRM 3.11.6.2.1, Computer Paragraph (CP) Notices.

  7. The operational instructions in this IRM will determine if the adjustment request can be made in Submission Processing or if it must be routed to another area or function. Returns which can be adjusted in Submission Processing (commonly referred to as "workable" ) are either input or sent to ISRP for input.

  8. General SERP Alerts issued for IRM 3.11.6 are additions to the IRM and are to be followed as part of the IRM 3.11.6.

  9. The operational guidance in this IRM takes precedence over any conflicting IRM. The specific section instructions take precedence over any general instruction.

    Note:

    This IRM does link to specific subsections in other IRMs. When following links to other subsections, typically, the instructions to be followed are within that subsection. Occasionally, there are instances in which you must follow a link within the subsection.

    Example:

    When researching Child Tax Credit to determine eligibility, you will refer to IRM 21.6.3.4.1.24.1, Child Tax Credit (CTC) - Qualifications. If the eligibility criteria are met, you will continue processing the claim per IRM 3.11.6. If eligibility is not met and you are instructed to disallow, you will refer to IRM 3.11.6.13.3.2.6, Child Tax Credit (CTC), and IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), for instructions on disallowing the claim.

  10. Not all scenarios are covered by this IRM. Follow IRM 3.11.6.1.7, Related IRMs, Documents, Publications, and Websites, when this occurs. If clarification is needed, contact your lead for assistance. Leads follow IRM 3.11.6.17.1, For Lead Tax Examiners - Related IRMs and Resources.

  11. Use an erasable red pen for any editing markings.

  12. Edit your Tax Examiner (TE) number in the top left margin of Form 1040-X or amended Form 1040 series, CP 08, CP 09, CP 27, documents being detached, and follow any local procedures that ensure the integrity of the batch for routing to Files (e.g., number returns, enter IDRS employee number, and date).

    Exception:

    Editing your TE number is not required when working MeF or scanned returns, unless printing a paper copy, rerouting, e-fax, and secure messaging.

  13. When processing an e-filed amended return, the CIS Case ID is required in the remarks section of all IDRS transactions, such as REQ54, ENREQ, REQ77, and credit transfers.

    Note:

    CIS populates the Remarks field with the CIS Case ID when initiating the adjustment from CIS. When using IAT, enter the CIS Case ID in the Remarks field.

  14. The general sequence is to determine the following:

    1. Route out criteria is met

    2. The claim is complete

    3. The claim is allowable

    4. The claim is processable

  15. When processing amended returns and CP Notices, use IDRS, AMS, CIS, EUP, and RRD.

  16. Use of IAT tools, when available, is required. IRM instructions will take precedence over any instructions, directions or default inputs the IAT tools provide. If specific IRM instructions are not present, accept the IAT Tool results.

    Note:

    The IAT tools use IDRS to gather and submit data. If IDRS and/or a command code (CC) is down or not functioning properly, IAT will not function correctly. If you are having a problem with an IAT tool, try entering the command code manually using IDRS. If there are no IDRS or CC issues, continue processing the case manually and notify your lead or manager there is a problem with IAT.

  17. Researching previous tax years may assist in processing a return. Tax examiners must have a valid business reason to access related accounts.

  18. Return original documents. When returning the original documents listed below, use Form 8009-A, We Need More Information to Process Your Amended Return or CP Notice, with the fill-in: We are returning your original document(s).

    • Passport

    • Social Security Card

    • Driver’s License

    • Marriage Certificate

    • Other original documents - see Lead TE

    Exception:

    If the return is being routed to another area, do not detach the above-mentioned document(s).

Processing Time Frames and Suspense Time Frames

  1. Form 1040-X, Amended U.S. Individual Income Tax Return, Computer Paragraph (CP)CP 08, You May Qualify for a Refund From the Additional Child Tax Credit, CP 09, You May Be Eligible for the Earned Income Credit (EIC), and CP 27, You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet, notices will be processed in first in/first out (FIFO) order by oldest IRS Received Date regardless of the filing method in accordance with the timeframes described in this section. For additional information on processing timeframes, see IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

  2. Batch work that has the same IRS received date together.

  3. Work received from areas within the IRS is to be identified as Inter office (I/O); Such as, Work I/O, Statute I/O, W-7 I/O, and Rebatch cases from suspense. When creating an I/O batch, use the current date as the Julian Date in BBTS.

  4. For paper cases, count days in inventory using the IRS received date to determine the oldest date to be processed excluding I/O, Statute, W-7, No TC 150, Correspondence and the previous day’s receipts. For e-filed cases and cases scanned into the Correspondence Imaging System (CIS), count days in inventory using the oldest IRS received date of the active cases in the generic queues.

  5. Form 1040-X, CP notices, and I/O work have different processing timeframes that are based upon time of year. These changes are commonly referred to as non-peak and peak.

  6. The non-peak period is defined as July 1st through February 28th or 29th on leap year. During non-peak, process Form 1040-X, CP notices, I/O work, and Form 4442 requests according to the table below.

    If ... And ... Then ...
    A Form 1040-X is e-filed   Process the Form 1040-X within 20 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.
    A Form 1040-X is received on paper
    1. The paper case will be sent to ICT to create a CIS case for Submission Processing (SP)

    2. The paper case will not be sent to ICT to create a CIS case for SP

    1. Process the Form 1040-X within 20 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the Form 1040-X within 20 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    A CP 08, CP 09, or CP 27 is received
    1. The CP case will be sent to ICT to create a CIS case for SP

    2. The CP case will not be sent to ICT to create a CIS case for SP

    1. Process the CP case within 20 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the CP case within 20 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    I/O work is received
    1. The I/O case is already in CIS.

    2. The I/O case will be sent ICT to create a CIS case for SP.

    3. The I/O case will not be sent to ICT to create a CIS case for SP.

    1. Process the I/O case within 20 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the I/O case within 20 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    3. Process the I/O case within 20 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    A Form 4442, Inquiry Referral, or E-4442 is received   Process the referral within 30 calendar days.

  7. The peak period is defined as March 1st through June 30th. During peak, process Form 1040-X, CP notices, I/O work, and Form 4442 requests according to the table below.

    If ... And ... Then ...
    A Form 1040-X is e-filed   Process the Form 1040-X within 30 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.
    A Form 1040-X is received on paper
    1. The paper case will be sent to ICT to create a CIS case for SP

    2. The paper case will not be sent to ICT to create a CIS case for SP

    1. Process the Form 1040-X within 30 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the Form 1040-X within 30 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X

    A CP 08, CP 09, or CP 27 is received
    1. The CP case will be sent to ICT to create a CIS case for SP

    2. The CP case will not be sent to ICT to create a CIS case for SP

    1. Process the CP case within 30 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the CP case within 30 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    I/O work is received
    1. The I/O case is already in CIS.

    2. The I/O case will be sent to ICT to create a CIS case for SP

    3. The I/O case will not be sent to ICT to create a CIS case for SP

    1. Process the I/O case within 30 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    2. Process the I/O case within 30 calendar days from the IRS received date (day one) to the date the CIS Case is reassigned or rerouted to another area (ending day), the CIS case is closed (ending day), or the input of a TC 29X.

    3. Process the I/O case within 30 calendar days from the IRS received date (day one) to the date the document is delivered to the Corresponding Imaging System (CIS) Unit (ending day) or input of a TC 29X.

    A Form 4442, Inquiry Referral, or E-4442 is received   Process the referral within 30 calendar days.

  8. Amended return suspense time frames are as follows:

    Note:

    C-Letter correspondence suspense time frames are applicable to the SP-Letter version.

    Reason for Suspense ... Time Frame ...
    No TC 150
    • 60 days from the received date.

    • ERS Status is "100", suspend for 5 working days.

    • If the tax data is present and/or is pending, 60 days from the received date.

    TC 150 posting date shows 00000000 or is blank
    • For TY 2020 and prior, suspend the amended return until Posting Cycle 22

    • If the amended return is received during Posting Cycle 21 or later and the posting date shows 00000000 or is blank, then suspend the case for 14 days.

    Unpostable TC 150 45 days from today.
    Corrected Unpostable TC 150 10 days from today.
    Pending TC 150 10 days from today.
    RETREG 21 days from today.
    Letter 324C per IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C). 45 days from the date the letter sent on IDRS.
    Letter 324C or Letter 916C per IRM 3.11.6.6.5.1, Processing Statute Cases. 45 days from the date the letter sent on IDRS.
    Credit transfer during “Dead Cycles” Suspend until after the “Dead Cycles”
    Undelivered correspondence per IRM 3.11.6.9.11, Undelivered Correspondence If the case is in suspense, 45 days from the date of your newly issued letter
    Unemployment Compensation Exclusion (UCE) per IRM 3.11.6.13.2.1.3, Unemployment Compensation Exclusion (UCE) - Tax Year 2020 (Line 1) Suspend for 10 working days

1040-X Suspense Activity Codes
  1. When suspending a MEFP or MEFS case, use the appropriate suspense reason from the "Suspense" drop-down listed below.

    If ... And ... Then use ...
    No TC 150
    1. The case is in ERS Status 100.

    2. If tax data is present and/or is pending (must be present on primary taxpayer for FS 3), per IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150)

    1. "No TC 150 ERS Status 100"

    2. "No TC150"

    TC 150 posting date shows 00000000 or is blank   "No TC 150 Posting Date"

    Note:

    If the return is received in Cycle 21 or later, use "No TC 150 Posting Date Received in Cycle 21 or Later"

    Unpostable TC 150   "Unnn TC 150"
    Corrected Unpostable TC 150   "CU TC 150"
    Pending TC 150   "PN TC 150"
    Statute return on retention   "RETREG"
    Letter 324C   "324C-SNT"
    Letter 916C or Letter 916SP   "916C-SNT"
    Credit transfer during "Dead Cycles"   "Dead Cycle"

    Note:

    If a suspense reason listed above not available in the drop-down menu, use "MONITOR" as the reason for suspense.

  2. When suspending a paper case, use the appropriate suspense activity code listed below.

    If ... And ... Then ...
    No TC 150
    1. The case is in ERS Status 100.

    2. If tax data is present and/or is pending (must be present on primary taxpayer for FS 3), per IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150)

    1. "TC150-ERS"

    2. "NO-TC150"

    TC 150 posting date shows 00000000 or is blank   "NOPOSTDATE"
    Unpostable TC 150   "UNNN-TC150"
    Corrected Unpostable TC 150   "CU-TC150"
    Pending TC 150   "PN-TC 150"
    Statute return on retention   "RETREG"
    Letter 324C   "324C-SNT"
    Letter 916C or Letter 916SP   "916C-SNT"
    Credit transfer during "Dead Cycles"   "DEADCYCLE"

Computer Paragraph (CP) Notices

  1. Computer Paragraph (CP) notices are generated from criteria on the original return. They are as follows:

    • CP 08 - You May Qualify for a Refund From the Additional Child Tax Credit
      – For tax years 2020 and later, Form 15110 and Schedule 8812 must be attached to the CP 08 response.
      – For tax year 2019, Schedule 8812 must be attached to the CP 08 response.

    • CP 09 - You May Be Eligible for the Earned Income Credit (EIC)
      – For tax years 2020 and later, Form 15111, Earned Income Credit Worksheet (CP 09), must be attached to the CP 09 response.

    • CP 27 - You May be Eligible for the Earned Income Credit (EIC) - Complete EIC Worksheet
      – For tax years 2020 and later, Form 15112, Earned Income Credit Worksheet (CP 27), must be attached to the CP 09 response.

  2. Apply Form 1040-X, Amended U.S. Individual Income Tax Return, procedures are to CP 08, CP 09, and CP 27 notices, as they are considered a Form 1040-X.

  3. CP 08, CP 09, and CP 27 notices are mailed to taxpayers with 2D bar codes and will have the SSN masked (e.g., XXX-XX-1234). Hand-held scanners will be available for reading the barcode. If the hand-held scanner is unable to read the bar code, Command Code (CC) TPIIP must be used to determine the SSN.

    Caution:

    Do not write, mark, or stamp over the bar code as this could make it unreadable.

  4. Generally, a completed CP notice is considered an informal claim. However, if the taxpayer returns the CP notice indicating he/she is not eligible for the specific credit (no other issues involved), a reply is not necessary. Destroy as classified waste per local procedures.

    Exception:

    If some of the children qualify the taxpayer for the credit but others do not, then process the CP notice for the qualifying child(ren).

  5. If the taxpayer attached the CP 08, CP 09, or CP 27 notice to Form 1040-X and there are additional issues, convert the credit to the attached Form 1040-X and process per local procedures. X the CP notice and staple behind the Form 1040-X.

    Note:

    If the taxpayer has additional issues in addition to the CP notice and does not provide Form 1040-X, process the CP notice and correspond for a Form 1040-X for the other issues.

  6. If the taxpayer attached the CP 08, CP 09, or CP 27 notice to Form 1040-X and there are no additional issues, process the CP notice. X the Form 1040-X and staple behind the CP notice.

    Note:

    CP 08, CP 09, or CP 27 notice with a received date after the RSED should be worked following procedures in IRM 3.11.6.6.5.1, Processing Statute Cases.

  7. Taxpayers must return the completed and signed (both Primary and Secondary if FS2, Married Filing Jointly) CP notice, Form 15110, Form 15111, or Form 15112 as applicable, if qualified. If a CP notice response is incomplete, correspond.

    If working a ... And ... Then ...
    CIS case
    1. The signature is missing

    2. Form 1511X is incomplete

    3. Schedule 8812 is missing

    1. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), and use the fill in: We are unable to process your CP XX, for tax year 20XX because it was not signed. Please complete Form 1511X, and return it to us along with this letter, Letter 178C.

    2. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), and use the fill in: We are unable to process your CP XX, for tax year 20XX. Please complete Form 1511X, and return it to us along with this letter, Letter 178C.

    3. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), and use the fill in: We are unable to process your CP XX, for tax year 20XX because Schedule 8812 is missing. Please complete Schedule 8812, and return it to us along with this letter, Letter 178C.

    Paper case
    1. The signature is missing

    2. Form 1511X is incomplete

    3. Schedule 8812 is missing

    1. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), using the appropriate check box(es) on Form 8009-A.

    2. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), using the appropriate check box(es) on Form 8009-A

    3. Correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), using the appropriate check box(es) on Form 8009-A

    Note:

    If the taxpayer response to Form 8009-A or Letter 178C is still incomplete, send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

  8. CP notices, Form 15110, Form 15111, and Form 15112 do not need to be sent to Statute.

  9. If a signed Form 1040-X or Amended Return is attached to the CP Notice, accept the signature and notate "O/S 1040X" on the notice.

  10. Do not include an amended claims date on CP notice adjustments.

  11. Do not input a TC 971 AC 270 when corresponding on CP notices.

  12. Use the AGI and EI from the Per Computer Column of CC RTVUE for CP Notice calculations.

    Exception:

    If there is a previously posted adjustment, see paragraph 14 below.

  13. If the taxpayer alters the address on a CP notice and an address change can be made per IRM 3.11.6.11.1, Entity Changes, then use CC INCHG to update the taxpayer address.

  14. If there is a previously posted adjustment on IDRS, review the adjustment to determine if the CP notice issue has already been adjusted. If the CP notice has already been adjusted, treat the CP notice as classified waste per local management. Otherwise, continue to process the CP notice.

Internal Revenue Manual (IRM) Deviations

  1. Service Center Directors, Headquarter Branch Chiefs, and Headquarter Analysts do not have the authority to approve deviations from IRM procedures. Any request for an exception or deviation to an IRM procedure must be elevated through appropriate channels for executive approval. This will ensure other functional areas are not adversely affected by the change, and it does not result in disparate treatment of taxpayers.

  2. See specific guidelines in IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process. Request for an IRM deviation must be submitted in writing and signed by the field director, following instructions from IRM 1.11.2.2.4(3). Any disclosure issues will be coordinated by the program owner. No deviations can begin until reviewed by the program owner and approved at the executive level. All requests must be submitted to the Submission Processing Headquarters IRM Coordinator.

Controlling Cases on the Integrated Data Retrieval System (IDRS)

  1. Submission Processing will control all paper filed amended returns received in the 1040-X unit on the Integrated Data Retrieval System (IDRS) within five business days of receipt. The date a case is entered into BBTS will be counted as day one.

    Exception:

    CP Notices, Form W-7, Application for IRS Individual Taxpayer Identification Number, returns, loose forms and MFT 35 adjustments do not have to be controlled on IDRS.

  2. E-filed amended returns and scanned returns received by SP are controlled on IDRS systemically.

  3. The IDRS numbers used by SP to control MEFP and MEFS to the generic queue are listed below.

    If ... Then ...
    Austin 0622061565
    Kansas City 0922072687
    Ogden 0423874046
    CIS auto-distribution 0938000000

  4. Clerical staff controls all paper cases to the earliest received date.

  5. The group/team’s IDRS numbers used by the SP clerical staff to control 1040-X cases to the generic queue are listed below:

    Campus IDRS Number IDRS Number IDRS Number
    Austin 0622400000 0623300000 0623800000
    Kansas City 0921500000 0921600000 0921700000
    Ogden 0411900000 0413200000  

    Note:

    As these are group numbers, the claims are not assigned to a specific tax examiner in Submission Processing. These are 1040-X claims controlled to the 1040-X area in SP. For cases open to the generic queue, see IRM 3.11.6.6.13, Open Cases / Open Control Base. If you receive inquiries from other areas concerning controlled cases, the inquiry must be on Form 4442, Inquiry Referral, or E-4442. Refer to IRM 3.11.6.6.1, Form 4442 and E-4442, Inquiry Referrals.

  6. If the case is controlled to another campus’ 1040-X unit, process your case following normal procedures.

    Caution:

    See paragraph 16 below if working a MEFS case.

  7. If the case is opened to someone other than a 1040-X employee or the generic queue, see IRM 3.11.6.6.13, Open Cases / Open Control Base.

  8. If the case is controlled to the wrong taxpayer, MFT, or tax year, then close the incorrect base to MISC and work the case as uncontrolled.

  9. If the case has multiple control bases with the same received date and batch number, close all bases upon case completion.

  10. Correct other case control input errors using IAT ACTON before completing your case action. This includes incorrect IRS received dates and incorrect service center IDRS numbers.

  11. Process amended returns as follows:

    If the case is ... And the case will be ... Then ...
    Controlled to your campus’ generic queue
    1. Worked

    2. Routed or returned to the taxpayer

    3. Suspended

    1. xMend will re-assign the case, with matching received dates, to your IDRS number then close the control base and issue a TC 971 AC 120 if missing.

    2. Change the control category to "MISC" and close the control base.

    3. Suspend the case by:

      • Reassigning the case to your IDRS number

      • Inputting the appropriate suspense activity then suspend the case
        Note: Follow local procedures for suspending and maintaining suspense files.

    Uncontrolled
    1. Worked

    2. Routed or returned to the taxpayer

    3. Suspended

    1. xMend will generate a closed control base, based on your adjustment, and issue a TC 971 AC 120 using the return received date.

    2. Create a closed control base to your IDRS number and use:

      • "SPX-1040X" as the Activity

      • "MISC" as the control category

      • The received date of the amended return

      • Input a TC 971 AC 120

    3. Open a suspense case to yourself and use:

      • "XRET" as the control category

      • Appropriate activity for the suspense

      • The received date of the amended return

      • Input a TC 971 AC 120


      Note: Follow local procedures for suspending and maintaining suspense files.

  12. If the received date of the amended return is more than one year old, place Old Date Indicator" V" after the received date: MMDDYYYYV.

  13. If the case is moving from an ITIN to an SSN, then the control base should be on the SSN. If the SSN has not been established, control to the ITIN.

  14. When xMend is not available you must manually control/close the case.

  15. Ensure all open controls associated with the case(s) that you are processing are closed. Associated cases are those that have an:

    • Open control to your local 1040-X department and can be identified by batch ID number and/or received date.

    • Open XRET control base that matches the CIS case image information. When making this determination, you will need to compare the received date stamp on the return, the received date on the open control bases, and the case scan location. See Figure 3.11.6-1, Open XRET Control Base Matching The Open CIS Case.

      Example:

      An Austin tax examiner (TE) is working a MEFS case and notices there are two open controls. One of the open controls is for the MEFS case being worked, and the other is an XRET control assigned to the Kansas City generic queue. The TE also notices the received date on both controls are the same and researches the scan location to determine if the XRET control is the MEFS case. The TE determined the case is the same and must close the XRET control to MISC before continuing to process the MEFS case. See Figure 3.11.6-1, Open XRET Control Base Matching The Open CIS Case.

    Figure 3.11.6-1

    This is an Image: 33455003.gif

    Please click here for the text description of the image.

Submission Processing MEFS and MEFP Generic Queue Management
  1. Occasionally, Submission Processing (SP) may receive a case(s) with other Category Codes in the MEFP and MEFS generic queues listed in IRM 3.11.6.2.4, Controlling Cases on the Integrated Data Retrieval System (IDRS). The generic queue must be checked daily for cases that don’t belong to SP. If cases are found, they must be reassigned daily. Cases with the following Category Codes were received in error.

    Note:

    This is not an all-inclusive list.

    • DAUD

    • DUPF

    • LSFM

    • PHZ1

    • TPRQ

    • TWRO

  2. When a case is received in error, follow the table below.

    If ... Then ...
    A tax examiner (TE) receives any case(s) mentioned above The TE will follow IRM 3.11.6.6.14.1, Accounts Management Category Codes (CIS Cases Only).
    SP receives any case(s) mentioned above in the SP MEFP and MEFS generic queue(s) The case must be reassigned per paragraph 3 below by one of the following:
    • Site User Manager (SUM)

    • Back-up SUM (BSUM)

    • Manager

    • Lead

    Caution:

    Before reassigning the case(s) per paragraph 3 below, verify you have access to the Specialized Queue. To verify your access, review the Specialized Queue Access List found on the 1040-X portal.

  3. Once you have verified your access, take the following action to reassign the cases to the appropriate queue found in the AM Site Specialization Temporary Holding Numbers on SERP. Since these cases were sent to SP in error, it is not necessary to update the case data prior to reassigning the case(s).

    If ... Then ...
    A specific queue number exists for a particular Category Code

    Example:

    Category Code 965X

    Reassign the case to the specific queue.
    A specific queue number does not exist for a particular Category Code

    Example:

    Category Code MATH

    Use the queue number in the "IMF Site Specialized Numbers" section that is designated for use by AUSC, KCSC and OSC SP 1040-X.

Working Trail

  1. Leave a working/action trail in the left margin of Form 1040-X, Amended U.S. Individual Income Tax Return, when:

    1. Detaching a form, schedule, or notice

    2. Preparing a form

    3. Routing a return

    Note:

    When a working/action trail is required on an e-filed amended return or CIS Case to be processed by SP 1040-X, leave a case note. If the CIS case or detachment from the CIS case will be printed, leave a working trail.

  2. Edit the following on the detached form, schedule, notice, or prepared form if not already present:

    1. Taxpayer's name

    2. Taxpayer's address

    3. Taxpayer Identification Number (TIN), (e.g., SSN, IRSN, ITIN)

    4. Received date

    5. Tax Year

    6. TE number

    7. Annotate the CIS Case Id next to your TE Number.

    8. Annotate "CIS Image- Do not correspond for signature" in the signature area if the case is signed.

      Exception:

      Do not edit Personally Identifiable Information (PII) on detached forms that belong to different taxpayers.

  3. Use the following table for e-filed amended returns and cases imaged into CIS to be processed by SP 1040-X:

    If ... Then ...
    1. Reassigning a case, or rerouting a Reroute EIC, or Reroute Exam claim.

    2. When rerouting A MEFP case to another area.

    3. When rerouting a MEFS case to another area.

    1. Input a CIS case note.
      Reminder: See IRM 3.11.6.8, 1040-X MEFP and MEFS Reassignment and Reroute Guide, when a case needs to be reassigned or rerouted a case.

    2. Input a CIS case note, print the case to PDF, use the Adobe Acrobat software to annotate any required working trail(s) per paragraphs 1, 2, and 4, and attach the documentation to your CIS Case.

    3. Input a case note and use the CIS Annotation tool to leave any required working trail(s) per paragraphs 1, 2, and 4 on the document.

  4. Use the following table when leaving a working/action trail:

    If ... Then ...
    Detaching a form, schedule, or notice from a return
    1. Edit the following in the lower left margin of Form 1040-X:

      1. Detached item description

      2. Routing destination of detachment

      3. Today’s date - MMDDYY or MMDDYYYY format

    2. Edit the following in the upper left margin of the detached form, schedule, or notice:

      1. Routing destination of detachment

      2. Today’s date - MMDDYY or MMDDYYYY format

    3. Edit the following in the lower left margin of the detached form, schedule, or notice:

      1. "Det. F1040-X" , "Detached from Form 1040-X" , or similar wording

      2. Routing destination of Form 1040-X

      3. Today’s date - MMDDYY or MMDDYYYY format

    Preparing a form/schedule
    1. Edit the following in the lower left margin of Form 1040-X:

      1. "Prep. (item description)" , "Prepared (item description)" , or similar wording

      2. Routing destination of prepared form

      3. Today’s date - MMDDYY or MMDDYYYY format

    2. Edit the following in the upper left margin of the prepared form/schedule:

      1. Routing destination of prepared form

      2. Today’s date - MMDDYY or MMDDYYYY format

    3. Edit the following in the lower left margin of the prepared form/schedule:

      1. "Prep. per F1040-X" , "Prepared per Form 1040-X" , or similar wording

      2. Routing destination of Form 1040-X

      3. Today’s date - MMDDYY or MMDDYYYY format

    Routing a return Edit the following in the upper left margin of the return:
    1. Routing destination

    2. Today’s date - MMDDYY or MMDDYYYY format

    Reminder:

    Include any working/action trails required by local procedures.

Loose Correspondence and Documents

  1. When associating correspondence or loose documents, those that became detached in error, with a previously posted adjustment or the original filing, use Form 9856, Attachment Alert, following local procedures.

  2. Documents cannot be associated with an electronic DLN. Research CC IMFOLI or CC TRDBV to determine if the original return was filed electronically. See Document 6209, Campus and File Location Codes for service center codes. If there is an electronic DLN input a TC 290 .00.

  3. On MEFS cases follow the table below.

    If ... Then ...
    The CIS image for the case is a loose form(s).

    Example:

    The CIS image on the case does not contain an amended return and is a Form W-2.

    1. Send Letter 178C paragraphs A, 5, and n using fill-in: Please include (form/schedule) when submitting your original return or your amended return.

    2. Close the case.

    If the image is other than a loose form or schedule (i.e., a driver’s license) and an amended return is not found.
    1. Input a case note describing what the image is and indicate no amended return located.
      Example: Copy of driver’s license. No amended return located.

    2. Close the case.

Related IRMs, Documents, Publications, and Websites

  1. Use the following IRMs when guidance is not provided within this IRM:

    • IRM 3.10.72-1, Routing Guide / Local Maildex

    • IRM 3.10.72-2, Correspondex C Letters - Routing Guide

    • IRM 3.10.72-3, Computer Paragraph CP Notices - Routing Guide

    • IRM 3.10.72-4, Miscellaneous Documents/Forms/Correspondence - Routing Guide

    • IRM 3.11.249.3.2.1, Document Locator Number (DLN)

    • IRM 3.12.179, Individual Master File (IMF) Unpostable Resolution

    • IRM 21.5.3-2, Examination Criteria (CAT-A) - General

    • IRM 21-5.3-3, Examination Criteria (CAT-A) - Credits

  2. Use Document 6209, IRS Processing Codes and Information, 1040 attachment guide, Tax Form and Instructions (accessible through the IRS Home Page), and Publication 17 when processing amended returns. These are valuable resources for obtaining additional information, resolving questions and completing math verification.

  3. Use the following websites when processing amended returns:

  4. This IRM and the resources in this subsection do not cover all scenarios. See your lead when clarification is needed.

IRS Employees and Covered Relationships

  1. IRS employees can be identified from the IRS-EMP-CD on CC TXMOD and on CC IMFOLT. There are special procedures that you must follow to protect the taxpayer employee, as well as to protect yourself.

  2. If you access an account of an IRS employee that you do not know, work the case and see (4) below.

  3. If you access an account of an IRS employee that you do know, or if you access an account of someone that falls under a covered relationship such as family members, friends, or neighbors, refer the case to your lead or manager and see (4) below.

  4. Completing Form 11377-E, Taxpayer Data Access, is voluntary but highly recommended. The purpose is to document the reason(s) that the tax return and/or information on IDRS was accessed when the case was not assigned directly to you.

Integrated Data Retrieval System (IDRS) Access

  1. While working or assigning cases, SP employees may encounter modules that are blocked on IDRS. These modules will be identified by an IDRS security violation message, "Unauthorized to Access This Account" . Forward the case to your manager. Managers will notify the local Planning & Analysis staff who will scan the case and send encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox requesting access to the account. Managers will retain the original case in a file, or CIS inventory, awaiting access that can take up to five business days. Once notified that access has been granted, the case can be worked following applicable procedures.

Preliminary Review of Form 1040-X/Amended Return

  1. Occasionally, when paper returns are filed, multiple Form 1040, Form 1040-SR, Form 1040-A, Form 1040-EZ and/or Form 1040-X are attached. For example:

    • Two or more returns from the same taxpayer are mailed in the same envelope.

    • Two or more family members' returns are mailed by the tax preparer in the same envelope.

    • Two or more unrelated returns are mailed by the tax preparer in the same envelope.

      Note:

      Detach the returns leaving an action trail on each document, then sort, work or route the returns as appropriate. For transactions that require routing to another function, if two or more returns are for the same taxpayer keep all tax years together.

  2. If a CIS case has more than one imaged return follow the table.

    If ... And ... Then ...
    The imaged returns are duplicates   Process the case using the earliest complete return.
    The imaged returns are not duplicates They are for the same taxpayer, tax year, and routing criteria is not present Process each case separately.

    Reminder:

    When inputting multiple adjustments, a posting delay code is required.

    Caution:

    Do not close the CIS case until all adjustments have been completed.

    The imaged returns are not duplicates They are for the same taxpayer, tax year, and routing criteria is present Route the entire CIS case following normal procedures.

  3. When multiple SP CIS cases are present, determine if the other case(s) are unassigned. See the generic queue list in IRM 3.11.6.2.4, Controlling Cases on the Integrated Data Retrieval System (IDRS).

  4. When two or more scanned unrelated cases, category code MEFS, have been erroneously processed as one CIS image, the case(s) require a split request. There are two types of split requests, simple and complex. A simple split request is where two or more cases are in sequential order with all forms and schedules. A complex split request is where two or more cases or images are commingled in one case.

    Example:

    A case has two different tax years, 202X and 201X, scanned as one image. A simple split request would be made if the 202X case and associated forms, schedules, and documents are pages one through five and the 201X case and associated forms, schedules, and documents are pages six through ten. A complex split request would be made if the forms, schedules, and documents were commingled.

    Note:

    Refer to the 1040-X Job Aid for more information on splitting a CIS image.

    If ... And ... Then ...
    Two or more cases need to be split The request is a simple "SPLIT-IMAGE" request Submit a simple split request as follows:
    1. The TE will:

      1. Enter a case message stating "Simple split request. Pages(XX) belong to the current case. Pages (XX) belong to New Case A."

      2. Choose "SPLIT-IMAGE" from the "Suspend" drop-down list to open the "Split Image Details" screen.

      3. On the "Split Image Details" screen take the following actions:

        • Click the radio button next to the CIS image icon to start the simple split process.

        • In "Step 1" indicate the last page to be included with the current case by clicking on the appropriate page number and click the "Add Split" button.

    2. The lead or manager will:

      1. Retrieve the request from their "Approval" inventory, review the case message, and determine if the request will be accepted or rejected.

      2. If the request is being:

        • Accepted, enter a case message stating "Split request approved"

        • Denied, enter a case message stating "Split request denied (and the reason for the denial)."

      3. Complete the approval or denial process to send the case back to the TE’s "Active" inventory.

    3. The TE will:

      1. Retrieve the case and review the case messages.

      2. If split was:

        • Approved, continue processing per normal procedures.

        • Denied, make the needed corrections and submit the split request again.

    Two or more cases need to be split The request is a complex "SPLIT-IMAGE" request. Submit a complex split request as follows:
    1. The TE will:

      1. Enter a case message stating "Complex split request. Pages (XX) belong with the current case. Pages (XX) belong to New Case (A, B, C, etc.)" .

      2. Notify your lead or manager, per local procedures, that (CIS case number) requires a complex split.

      3. Suspend the case to your lead or manager, per local procedures.

    2. The lead or manager will:

      1. Review the case and determine if the request will be accepted or rejected.

      2. If the request is being:

        • Accepted, enter a case message stating "Split request approved"

        • Denied, enter a case message stating "Split request denied (and the reason for the denial)."

    3. If approved, the lead or manager will use the Split Image tool located in the "CIS Administration " to split the case. Then return the suspended case to the TE.

    4. The TE will:

      1. Retrieve the case and review the case messages.

      2. If split was:

        • Approved, continue processing per normal procedures.

        • Denied, make the needed corrections and submit the split request again.

  5. Determine if an e-filed amended return is a superseding, duplicate or amended return.

  6. Determine if a paper filed Form 1040 series, is an original, superseding, duplicate, or amended return.

  7. Before an adjustment can be input or routed to another function, check the return for the following elements:

    • Taxpayer Identification Number (TIN)

    • Tax period

    • Received date

    • Control base

    • Presidential Election Campaign Fund (PECF) requests

    • Discovered remittance

    • TC 150 posted

  8. When instructed to treat a case as classified waste, follow the table below.

    If ... Then ...
    Processing a MEFS case
    • Leave a case note stating, "Classified waste" .

    • Use the Close as MISC function

    Processing a paper case Follow local procedures.

Tax Period

  1. Amended returns must be for a specific tax period. When the tax period is missing and you cannot determine from return information or attachments, research IDRS for matching tax data.

    Note:

    If the tax period is incorrect on a MEFP or MEFS case, update the case data to the correct tax period per IRM 3.11.6.3.7, Updating Case Data.

  2. If the tax period can be determined, edit the tax period on the front of the return above the Entity section in YYMM or YYYYMM format or mark the appropriate box, if available, even when routing document to another function.

  3. If you cannot determine the tax period through IDRS research, correspond unless return is being routed to another function. Correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

    Note:

    Do not input TC 971 AC 270.

  4. If the taxpayer tries to submit an amended return for multiple tax periods on a single amended return, correspond. See IRM 3.11.6.10 , Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

    Note:

    If sending Form 8009-A, input a TC 971 AC 270 on the tax year of your assigned case.

Taxpayer Identification Number (TIN)

  1. To process a return, the taxpayer must have a Taxpayer Identification Number (TIN) such as a Social Security Number (SSN) or IRS Individual Taxpayer Identification Number (ITIN).

  2. The IRS uses four different types of TINs when processing Individual Master File (IMF) Taxpayer accounts. The following table contains the type of TINs and their format:

    Taxpayer Identification Number (TIN) Type Format
    Social Security Number (SSN) - If followed by an asterisk (*) it is a temporary or "invalid" number. xxx-xx-xxxx
    Individual Taxpayer Identification Number (ITIN) - This number is assigned by the Austin campus ITIN Operation as a result of an accepted W-7 / W-7SP application. 9xx-NN-xxxx

    Note:

    The fourth and fifth digits of a valid ITIN range are:
    - 50 through 65
    - 70 through 88
    - 90 through 92
    - 94 through 99

    Adoption Taxpayer Identification Number - This number is assigned by the Austin campus as a result of an accepted W-7A application. 9xx-93-xxxx
    (always "93" for 4th and 5th digits)
    Internal Revenue Service Number (IRSN) - This number is assigned by the IRS. 9xx-XX-xxxx

    Note:

    The fourth and fifth digits of an IRSN are the IRS Service Center code. See IRM 3.13.5.23, Internal Revenue Service Number (IRSN) Format.

  3. For ITINs, see IRM 3.11.6.12.4, Individual Taxpayer Identification Number (ITIN) Status.

  4. If the Primary TIN (P-TIN) or secondary TIN (S-TIN), when married filing jointly, is missing, incorrect, or illegible, research per IRM 3.11.6.11.1, Entity Changes. If found, edit to the appropriate field on the amended return.

    Note:

    If processing a MEFP or MEFS case, update the Case Data to correct P-TIN per IRM 3.11.6.3.7 , Updating Case Data.

  5. If you have exhausted all resources and are still unable to determine the P-TIN and/or S-TIN, correspond per IRM 3.11.6.10 , Correspondence Table of Issues, C-Letters and Paragraph Fill-ins. (Do not input TC 971 AC 270 if unable to determine primary TIN).

  6. Refer as CIS/AM, if:

    1. The taxpayer makes changes to the primary or secondary taxpayer's TIN.

    2. The P-TIN or S-TIN is invalid.

    3. The primary or secondary taxpayer is changing from an ITIN/IRSN to an SSN.

    4. The primary or secondary taxpayer’s account is set up on the invalid segment of master file (which requires an asterisk after the TIN (000-00-0000*). A pound sign after the TIN (000-00-0000#) is an indication of a newly assigned TIN. Do not treat as an invalid TIN.

      Exception:

      If the filing status is MFS (FS 3), the spouse's TIN may show an asterisk after the TIN. This should not be considered an invalid TIN and can be worked as normal.

    5. A filing status change to Married Filing Jointly (MFJ) and both taxpayers have already filed.

    6. The case involves merged (re-sequenced) account and an update to CC DDBCK or CC DUPED is required.

      Note:

      A merged (resequenced) account will have a transaction code 011, 013, 040 or 041 on CC ENMOD.

    7. Mixed entity cases where more than one taxpayer has attempted to file under the same TIN and:
      • It is not possible to verify the correct TIN through research, or
      • Research verifies that both individuals have used the TIN in other tax years, or
      • CC INOLES shows that both taxpayers have been listed under this TIN

    8. Scrambled SSN cases where CC INOLES has an entry beside the Scrambled SSN literal except blank, 00, 08, 21, or 22.

    9. For TY 2019 and later, if the taxpayer indicates a religious (e.g., "Amish" , "Mennonite" , or "Form 4029" , Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits) or conscience-based objection to obtaining a taxpayer identification number (TIN).

  7. If the taxpayer is filing MFJ and there is no TC 150 posted for the primary's TIN, research the secondary's TIN for a TC 150. TC 594 may be present. See IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150).

Received Date

  1. Every return should be stamped with a received date stamp. An Official Received Date Stamp must consist of no less than:

    • The word "Received"

    • Month (alpha or numeric)

    • Day - (for example, can be "1" or "01" )

    • Year - four digits

    • "Area Office (AO)" , "Lockbox (LB)" , Campus, "Field Office," "Taxpayer Assistance (TAC)" plus the location city, or functional area within one of these sites (e.g., Compliance Service Collections Operation (CSCO), Exam, Information and Communication Technology (ICT), Collection Information System (CIS), Accounts Management (AM), etc.)

      Note:

      Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management (AM), or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions in paragraph 4 below. For example, returns received by Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the official "IRS Received Date."

  2. On MEFP cases, the RRD field labeled "Received Date" is the received date of the return. The RRD field labeled "IRS Received Date" is an electronic postmark used to determine return timeliness.

    Note:

    See the 1040-X Job Aid for additional information.

  3. If the Received Date stamp is missing from the front page, or illegible, but is found elsewhere in the return packet, edit the date to the front of the return in MMDDYY or MMDDYYYY format in the blank space above line 1 of the Form 1040-X, Amended U.S. Individual Income Tax Return.

  4. Use the following table for e-filed amended returns and Cases imaged into CIS to be processed by SP 1040-X:

    If ... Then ...
    Editing a received date is required on an e-filed amended return.

    Note:

    RRD has the received date information for the e-filed amended return.

    1. Print the amended return from RRD to PDF.

    2. Edit the PDF to add the received date.

    3. Attach the PDF to CIS as an attachment.

    Editing a received date is required on a case imaged into CIS. Use the CIS “Annotation Toolbar” to add the received date.
    A case has multiple identical images with multiple received dates. Use the received date from the earliest complete return.

  5. On paper cases, honor received dates that are handwritten in the center portion of the amended return edited in:

    • Green ink on current year returns received with payments as the return received date to be used for processing

    • Red ink located in the center portion of the amended return

    Caution:

    When working a scanned case, the image is in black and white. Honor the received hand written in the center portion of the amended return.

  6. If the Received Date stamp is not found or is obviously incorrect, edit the received date based on the order of precedence below in the same format and location as stated in (3) above.

    1. Latest postmark or designated private delivery service mark on the envelope

    2. IRS Service Center Automated Mail Processing System (SCAMPS) date

    3. Signature Date (only if the return was signed in the current year)

    4. Current date

  7. When there are multiple received dates stamped and/or edited on the return and you are adjusting or routing an amended return, use the earliest received date. When dealing with replies to correspondence, see IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C), IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), or IRM 3.11.6.6.5, Statute Review.

  8. Input the received date of the return you are processing as the received date on IDRS. If the received date of the return does not match the established control base, see IRM 3.11.6.2.4, Controlling Cases on the Integrated Data Retrieval System (IDRS).

    Exception:

    For Statute returns, see IRM 3.11.6.6.5, Statute Review.

  9. OVERRIDE CODE - An Override Code is required when the IRS Received Date is over one year old and on cases when the statute has expired.

    1. R - Allows IRS Received Date to be older than a year in the past.

    2. S - Allows current date and the Refund Statute Control Date (RFSCD) to be later than the Refund Statue Expiration Date (RSED). Refer to IRM 3.11.6.6.5, Statute Review.

  10. When controlling cases on IDRS, if the received date of the amended return is more than one year old, see IRM 3.11.6.2.4, Controlling Cases on the Integrated Data Retrieval System (IDRS).

Determining Timeliness
  1. Always use the received date when determining timeliness of the claim. If the received date is missing, see IRM 3.11.6.3.3, Received Date. When the postmark is missing or illegible consider any return received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡calendar days of the due date of the return timely.

    Reminder:

    On MEFP cases, the RRD field labeled "Received Date" is the received date of the return. The RRD field labeled "IRS Received Date" is an electronic postmark used to determine return timeliness. See the 1040-X Job Aid for additional information.

  2. April 16 is Emancipation Day in Washington D.C., a legal holiday. This may affect taxpayers throughout the United States when a return is considered to be timely filed. See also IRM 25.6.1.6.18, List of Legal Holidays.

    1. When April 15 falls on a Sunday, the following Monday is generally the day on which returns are timely filed; however, in Washington D.C., April 16 is Emancipation Day, a legal holiday. All taxpayers have until Tuesday April 17 to file a timely return.

    2. When April 16 falls on a Saturday, Friday April 15 is considered the holiday. All taxpayers have until Monday April 18 to file a timely return due to the Emancipation Day holiday.

    3. When April 16 falls on a Sunday, Monday April 17 is the date of the Emancipation Day holiday. All taxpayers have until Tuesday April 18 to file a timely tax return due to the Emancipation Day holiday.

  3. Use the following table to determine if the claim is considered to be timely filed:

    If April 15 falls on ... Then the postmark must be ...
    Friday April 18 or earlier
    Saturday April 18 or earlier
    Sunday April 17 or earlier

    Caution:

    Disaster declarations may impact return due dates.

  4. According to Notice 2020-23, the due date for TY 2019 tax returns was postponed to July 15, 2020.

  5. According to Notice 2021-21, the due date for TY 2020 tax returns was postponed to May 17, 2021.

  6. These timeliness instructions affect the processing of:

    • Statute returns, see IRM 3.11.6.6.5.1, Processing Statute Cases.

    • Superseding returns, see IRM 3.11.6.3.3.2, Superseding Returns.

    • Returns involving PATH Act credits, see IRM 3.11.6.12.1, Protecting Americans from Tax Hikes (PATH Act).

Superseding Returns
  1. The due date of a calendar year individual income tax return is April 15.

    Note:

    A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.

  2. For tax year 2019, individual income tax returns were due July 15, 2020.

  3. For tax year 2020, individual income tax returns were due May 17, 2021.

  4. Due dates may be changed due to Presidential disaster declarations.

  5. An amended return:

    • Filed on or before the due date or the extended due date is a superseding return.

    • Postmarked on or before the due date or extended due date, is processed as a superseding return.

  6. Route to CIS/AM if the superseding return:

    • adjustment would result in an unpaid net balance due increase on the module.

    • is refund claim, but the claim must be disallowed, partially disallowed, or not considered, leaving the account with a balance due instead of a refund.

Amended Claims Date
  1. The Amended Claims Date is a REQ54 field that is used by Masterfile to apply the 45-day interest free period.

    1. Use the IRS Received Date as the Amended Claims Date.

    2. For suspended correspondence, the Amended Claims Date is the received date of the taxpayer’s reply that allows you to process the return.

    3. An Amended Claims Date is required on every adjustment unless specifically noted otherwise.

  2. Do not use an Amended Claims Date when processing CP 08, CP 09, CP 27 or Math Error Corrections (only when the math error was set on the original return).

  3. When making a received date determination, see IRM 3.11.6.3.3, Received Date.

Signature

  1. The taxpayer or a valid Power of Attorney (POA) must sign the claim or amended return requesting an adjustment. Both spouses must sign if the adjustment is related to a joint return. The signature(s) is required anywhere below the jurat (perjury statement), but not in the paid preparer section on amended returns and CP Notices. If an original signature is not present on paper filed returns or CIS cases to be worked by SP 1040-X, correspond per IRM 3.11.6.9 , Correspondence Procedures, IRM 3.11.6.9.2 , Corresponding on Net Balance Due Returns (Letter 324C), IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C), and IRM 3.11.6.10 , Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

  2. All accepted e-filed returns have a valid signature.

    Caution:

    Rejected e-filed returns may also be present on RRD. Only accepted returns will be sent to SP 1040-X for processing.

  3. If the jurat has been altered, treat it as a Frivolous claim.

  4. If the jurat is missing, treat it as an unsigned return and correspond for the missing signature(s) using Letter 324C to obtain the signature. Do not mail the return back to the taxpayer. Process the net balance due per IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C).

    Exception:

    If page 2 is missing on the new Form 1040-X, do not treat as missing jurat. Follow procedures for missing signature.

  5. Do not correspond for a missing/incorrect signature(s) if:

    1. Any "Dummy" return that was prepared by the IRS.

    2. A fiduciary representative or parent for other than a minor child signs for a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    3. Form 2848, Power of Attorney and Declaration of Representative, with Part II completed and is attached to the return, see IRM 3.11.6.3.4.1, Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs.

    4. The return is a duplicate.

    5. Taxpayer files MFS (FS 3) and spouse did not sign the return.

    6. The return is a substantiated math error response.

    7. The claim meets route out criteria unless otherwise specified.

      Note:

      For decedent returns, see IRM 3.11.6.6.22, Decedent Returns.

  6. If Form 1040-X is not signed, however a Form 1040 matching the Correct Amount column of Form 1040-X is attached and signed, accept the signature and continue processing the return. Edit a notation onto the signature line, if present, on Form 1040-X indicating that the Form 1040 is signed. Otherwise edit the notation on the front bottom portion of Form 1040-X.

  7. Correspond for the signature of two witnesses when the taxpayer signs with a mark such as an "X" . See IRM 3.11.6.9 , Correspondence Procedures.

  8. Joint returns require the signature of both taxpayers unless one of the taxpayers falls into one of the categories below:

    1. One spouse is overseas and the signing spouse is authorized by a power of attorney (e.g., Form 2848) or similar signed document which clearly defines the scope of authorization granted to the POA.

    2. One Spouse is in a combat zone/qualified hazardous duty area and the signing spouse attaches a statement.

    3. One spouse is incapacitated. The signing spouse should attach a dated statement explaining the reason the incapacitated taxpayer cannot sign. The signing spouse will sign on his/her signature line as well as the spouse's signature line.

      Caution:

      Incapacitated means the taxpayer is physically unable to sign the return. In the case of a mentally incompetent taxpayer a court appointed representative who can act for the taxpayer must sign the tax return.

    4. If MFJ return with only one signature and the taxpayer is divorced or separated, route to CIS/AM.

  9. If the taxpayer is a minor (there must be a clear indication the child is a minor) the return must be signed by one of the following:

    1. The minor child

    2. A parent

    3. A guardian or other fiduciary representative ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. A guardian or other fiduciary representative with documentary evidence is attached

    5. If none of the above applies, correspond for a missing signature. See IRM 3.11.6.9, Correspondence Procedures.

      Examples of Fiduciary representatives include:

      • Administrator (ADM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TTEE)

Centralized Authorization File (CAF) - Form 2848, Power of Attorney (POA) and Form 8821 (TIA) and General /Durable POAs
  1. The CAF maintains a database of authorized representatives who are permitted to sign for the taxpayer. The CAF unit will assign unique identifiers (CAF numbers) to the representative(s) based on Form 2848, Power of Attorney and Declaration of Representative (POA), and acceptable General/Durable POAs submitted.

  2. Taxpayers will occasionally submit a tax return that has been signed by their enrolled agent or some other representative or the taxpayer may attach a Form 2848 to indicate that they want a representative to be able to sign for them. These personal representatives of the taxpayer must submit a Form 2848 (Part II completed) or acceptable General/Durable POA or already have one on file with the CAF in order to sign the return.

    Note:

    For married filing joint (FS 2) accounts, each taxpayer must execute their own power of attorney or tax information authorization on a separate Form 2848 even if the same representative/appointee is provided.

  3. Taxpayers may also submit a Form 8821, Tax Information Authorization and Declaration of Representative (TIA), as documentary evidence for signing the tax return; however, Form 8821 does not authorize the signing of the return. If Form 8821 is present, detach and follow the routing instructions in paragraph 8.

  4. Correspond for a Form 2848, per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins, if the taxpayer submits a Form 8821 and the return is signed by someone other than the taxpayer.

  5. When the taxpayer submits a General/Durable POA, leave the document attached to the return and continue processing.

  6. If Form 2848 is attached, follow the table below when processing a MEFP or MEFS case.

    If ... And ... Then ...
    The signature on the return matches a representative listed on CC CFINK or the Form 2848 is already on file SIGN: field on CC CFINK is marked YES Continue processing the return.
    The signature on the return does not match a representative listed on CFINK, or no record is found,
    or SIGN: field on CC CFINK is marked "NO"
    1. Form 2848is attached

    2. Form 2848is not attached

    1. Print the case to PDF and follow the steps below.

      1. Go to the page(s) with Form 2848 and print just the Form 2848 to a PDF.

      2. E-fax the Form 2848 PDF to the CAF unit per paragraph 9 below.

      3. Leave a case note stating, "Form 2848 sent to CAF" .

      4. Continue processing the case.

    2. Correspond IRM 3.11.6.10 , Correspondence Table of Issues, C-Letters and Paragraph Fill-ins,

    Taxpayer signs the return and Form 2848 is attached The representative(s) is not listed or there is a change to the type of Authorization on CC CFINK
    1. Print the case to PDF and follow the steps below.

      1. Go to the page(s) with Form 2848 and print just the Form 2848 to a PDF.

      2. E-fax the Form 2848 PDF to the CAF unit per paragraph 9 below.

      3. Leave a case note stating "Form 2848 sent to CAF" .

      4. Continue processing the case.

  7. If Form 2848 is attached, follow the table below when processing a paper case.

    If ... And ... Then ...
    The signature on the return matches a representative listed on CC CFINK or the Form 2848 is already on file SIGN: field on CC CFINK is marked YES Continue processing the return.
    The signature on the return does not match a representative listed on CFINK, or no record is found,
    or SIGN: field on CC CFINK is marked "NO"
    1. Form 2848is attached

    2. Form 2848is not attached

    1. Detach Form 2848

      1. Route Form 2848 to the CAF unit per local procedures.

      2. Continue processing the 1040-X return.

      3. Leave an action trail on the amended return and Form 2848.

    2. Correspond IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins,

    Taxpayer signs the return and Form 2848 is attached The representative(s) is not listed or there is a change to the type of Authorization on CC CFINK
    1. Detach Form 2848 and route to the CAF unit per local procedures.

    2. Continue processing the return.

    3. Leave an action trail on the amended return and Form 2848.

    Note:

    If unable to verify a matching Form 2848 is already posted in CC CFINK, route Form 2848 to CAF per local procedures. Route Form 2848 even if incomplete.

    Note:

    Instructions to detach and route Form 2848 should be followed even if the amended return is routed to another area or if correspondence will be sent.

  8. If line 4 of Form 2848 or Form 8821 is checked, continue processing the return, do not detach or route to the CAF unit.

  9. Use the following addresses when routing a Form 2848 or Form 8821 to a CAF Unit:

    SP 1040-X Site Fax Numbers Address
    Kansas City and Austin 855-214-7519 Internal Revenue Service
    5333 Getwell Rd.
    Stop 8423
    Memphis, TN 38118
    Ogden 855-214-7522 Internal Revenue Service
    1973 N Rulon White Blvd
    Mail Stop 6737
    Ogden UT 84201

  10. Do not detach any "Worksheets" provided by the military to personnel assigned to a Combat Zone. They are not considered to be a POA in lieu of Form 2848. See IRM 3.11.6.6.21, Combat Zone.

  11. If correspondence is attached to the return that is unrelated to the amended return but needs to be detached and routed to the appropriate functional area, attach a photocopy of the POA/TIA to the correspondence. Indicate that the form has been detached and routed to the CAF unit.

Processing Presidential Election Campaign Fund (PECF) Requests

  1. Congress established the Presidential Election Campaign Fund PECF) to support financing of presidential election campaigns.

    1. Taxpayers may file an amended return to designate a part of the tax liability to the PECF, if not specified on the original return.

    2. The amended return must be filed within 20 and one-half months after the original due date for filing the return.
      • For calendar year 2022, this period ends on December 30, 2024.
      • For calendar year 2021, this period ends on December 30, 2023.
      • For calendar year 2020, this period ends on December 30, 2022.
      • For calendar year 2019, this period ends on December 30, 2021.

      Note:

      If claim is not received timely and the only change is to the PECF, then "no consider" the claim.

    3. The PECF fund amount is $3.

  2. The taxpayer may request that $3 go to the Presidential Election Campaign Fund (PECF) by checking one or both boxes on page 2 of Form 1040-X, Amended U.S. Individual Income Tax Return, or page 1 on an amended Form 1040, U.S. Individual Income Tax Return, and amended Form 1040-SR, U.S. Tax Return for Seniors.

  3. Research the “POLITICAL CHECKOFF” field on CC IMFOLR to determine if a change to the election is required. The field is coded as follows:

    Code Election Type
    0 None elected
    1 One elected on original return.
    2 Two elected on original return.
    3 One elected on amended return, none on original return
    4 Two elected on amended return, none on original return
    5 Two elected on amended return, one original return

  4. Only take action on an amended return with a PECF designation change from "No" to "Yes." A "Yes" designation may not be changed.

  5. Do not process a PECF request on any return that is being routed out.

  6. If the return meets correspondence criteria and an adjustment will not be input, do not process the PECF request. Correspond as required.

  7. Use the table below to prepare a "dummy" Form 1040-X, whenever the taxpayer indicates an addition to the PECF.

    If ... Then ...
    The amended return was e-filed or scanned.
    1. Edit:

      1. "Dummy PECF" in the top margin of a blank Form 1040-X.

      2. The tax period

      3. The primary name control

      4. The primary SSN and secondary SSN.

      5. Check the appropriate filing stratus check box

      6. IMF Condition Code (CCC) "5" to the right of filing status just above Column C if one PECF box is checked. Edit CCC "6" if two boxes are checked.

      7. The received date in MMDDYY format in the center portion.

      8. Check the appropriate PECF box(es), in Part II on the second page of the Form 1040-X.

      9. Edit "MeF Return - Do not correspond for signature" in the signature area.

      10. Your employee number/stamp in the upper left margin.

      11. Input Case Note "PECF Prep" .

    2. Continue processing the return and Route the "Dummy PECF" to Batching/ISRP per local procedures.

    The amended return was paper filed
    1. Edit:

      1. "Dummy PECF" in the top margin of a blank Form 1040-X.

      2. The tax period

      3. The primary name control

      4. The primary SSN and secondary SSN.

      5. Check the appropriate filing stratus check box

      6. IMF Condition Code (CCC) "5" to the right of filing status just above Column C if one PECF box is checked. Edit CCC "6" if two boxes are checked.

      7. The received date in MMDDYY format in the center portion.

      8. Check the appropriate PECF box(es), in Part II on the second page of the Form 1040-X.

      9. "O/S " on the signature line to indicate the original Form 1040-X was signed.

      10. Your employee number/stamp in the upper left margin.

      11. "PECF Prep" in the left margin

    2. Continue processing the return and Route the "Dummy PECF" to Batching/ISRP per local procedures.

Discovered Remittances

  1. A discovered remittance is any form of payment (cash, check, money order, stamp, jewelry, etc.) other than credit card that the taxpayer may send in.

    Note:

    When a US Treasury check is returned to the IRS, it is not considered a discovered remittance. Edit "Void" onto the check if it does not already have it. Forward the check and a copy of the return to the Refund Inquiry unit and continue processing the return.

    Exception:

    If the US Treasury check is made payable to the IRS this should be returned to Receipt and Control for proper disposition.

  2. When a remittance is discovered:

    1. If a Form 1040-V, Payment Voucher is attached, edit the received date and your TE number on the voucher then turn in the voucher and the remittance and continue processing the return.

    2. If a payment voucher is not attached or a loose remittance is discovered, complete Form 3244, Payment Posting Voucher. Turn in the remittance with the Form 3244, following local procedures then continue processing your return.

  3. If the taxpayer sends in a credit card or credit card information, refer the case to the Manager or Lead to issue Letter 3956C, Processing Form 1040 Received With Credit Card/Credit Card Information.

  4. For additional information on discovered remittances, see IRM 3.8.46.1, Discovered Remittances.

Updating Case Data

  1. The case data for cases received in Submission Processing (SP) 1040-X will have the following elements:

    • TIN (Taxpayer Identification Number)

    • MFT (Master File Tax)

    • TXPD (Tax Period)

    • NC (Name Control)

    • IRS Rcvd Dt (IRS Received Date)

    • Work Type

    • Doc Type (Document Type)

    • Category

    • Program

    • Function

  2. Use the following table to ensure the case data is correct and update as appropriate.

    If the CIS case is a ... Then use ...
    1040-X or amended 1040
    • The TIN of the Primary Taxpayer.

    • MFT "30" .

    • The TXPD of the return.

    • The NC of the Primary Taxpayer.

    • The IRS Rcvd Dt of the return.

    • Work Type "IMF" .

    • Doc Type "SP 1040X" .

    • Category "MEFP" for MeF cases, and "MEFS" for scanned cases.

    • Program "44490" for MEFP cases, and "44491" for MEFS cases.

    • Function "ADJ-710" .

    W-7 1040-X or amended 1040
    (Austin Only)

    Note:

    If a W-7 return is received by another SP site, the case data must be updated, and the case reassigned to the Austin generic queue. A W-7 return can be identified by a "W-7" stamp on the return image.

    • The TIN of the Primary Taxpayer.

    • MFT "30" .

    • The TXPD of the return.

    • The NC of the Primary Taxpayer.

    • The IRS Rcvd Dt of the return.

    • Work Type "IMF" .

    • Doc Type "SP 1040X W7" .

    • Category "MEFS" .

    • Program "44492" .

    • Function "ADJ-710" .

    Computer Paragraph (CP) 27 Notice
    • The TIN of the Primary Taxpayer.

    • MFT "30" .

    • The TXPD of the CP Notice.

    • The NC of the Primary Taxpayer.

    • The IRS Rcvd Dt of the return.

    • Work Type "IMF" .

    • Doc Type "SP 1040X CP 27" .

    • Category "MEFS" .

    • Program "40000" .

    • Function "ADJ-710" .

    CP 09
    • The TIN of the Primary Taxpayer.

    • MFT "30" .

    • The TXPD of the CP Notice.

    • The NC of the Primary Taxpayer.

    • The IRS Rcvd Dt of the return.

    • Work Type "IMF" .

    • Doc Type "SP 1040X CP 09" .

    • Category "MEFS" .

    • Program "40002" .

    • Function "ADJ-710" .

    CP 08
    • The TIN of the Primary Taxpayer.

    • MFT "30" .

    • The TXPD of the CP Notice.

    • The NC of the Primary Taxpayer.

    • The IRS Rcvd Dt of the return.

    • Work Type "IMF" .

    • Doc Type "SP 1040X CP 08" .

    • Category "MEFS" .

    • Program "40003" .

    • Function "ADJ-710" .

  3. If the CIS case is controlled under the incorrect TIN, take the following action.

    • Close the control base in IDRS using ACTON Cn,ERRORCASE,C,MISC.

      Example:

      If case number two is the incorrect case, the ACTON string would be: C02,ERRORCASE,C,MISC

    • Click "Update Case" and make necessary corrections to the TIN, MFT, tax period, and name control.

      Note:

      The system will automatically bring up the correct account in IDRS. Establish a control in IDRS under the correct account.

  4. The data displayed in the Case Data section must be updated by clicking the "Update Data" button, when reassigning a case. See IRM 3.11.6.8, 1040-X MEFP and MEFS Reassignment and Reroute Guides.

  5. The Statute Search field must be changed to Yes, once a MEFP or MEFS case has been returned from the statute unit indicating "No Statute Issue(s)."

Screening Criteria for Processable Return

  1. Screen the Amended Return to determine if:

    1. Route out criteria is present

      Note:

      Research IDRS for any Transaction Code or Freeze Code that require special attention.

    2. The claim is complete

    3. The claim is allowable

    4. The claim is processable

  2. Before inputting any changes to a Form 1040-X, check for any issue(s), freeze codes, transaction codes, math error condition, tax period, No TC 150, etc. that require routing to another area. See IRM 3.11.6.7, 1040-X Routing Guide.

  3. If the return is not routed to another area, then check for the following items that may require correspondence or additional action if missing or invalid:

    • Primary TIN

    • Tax period

    • Signature

    • Received date

    • Presidential Election Campaign Fund (PECF) boxes checked requiring preparation of a "dummy return"

    • Forms, schedules, or other required information

  4. Unless otherwise specified, input the adjustment if the claim is processable, does not meet route-out criteria, or require correspondence.

  5. If working a MEFS case and the case requires Form 1040-X to be converted to a Form 1040 or Form 6114, follow the association process in IRM 3.11.6.9.15, Association, Forms, Schedules, and Other Documents to MEFP and MEFS Cases, prior to routing.

Transaction Code (TC) 150 Research (No TC 150)

  1. All amended claims require a posted TC 150, unless specifically instructed. Specific instructions to route without a posted TC 150 take priority.

  2. The posted TC 150 must have a POSTED date. If the posting date shows 00000000 or is blank treat as a NO TC 150. After verifying the account, suspend the amended return until Posting Cycle 22. For TY 2019, suspend the amended return until Posting Cycle 33.

    Note:

    If the amended return is received Posting Cycle 21 or later and the posting date shows 00000000 or is blank, then suspend the case for 14 days per local procedures. After the 14-day suspense period follow normal processing procedures.

  3. If a TC 150 is found, continue processing per IRM 3.11.6.5, Master File Verification and Math Verification.

  4. If the following TC 150 responses are found on CC TXMOD, take the following action:

    • RJ 150 Rejected Transaction, not in ERS route to CIS/AM. See paragraph 6 below.

    • Unnn 150 Unpostable, suspend for 45 days from today (where nnn represents the unpostable number).

    • CU150 Corrected Unpostable, suspend for 10 days from today.

    • PN 150 Pending Transaction, suspend for 10 days from today.

    Monitor CC IMFOLT for the TC 150 to post following local procedures. If the TC 150 has not posted after the suspense period, route to CIS/AM.

  5. Research IDRS for a TC 150 for the tax period indicated on the return. If the figures on the return or the data on IDRS support a different tax period for either the Form 1040 or Form 1040-X, edit the correct tax period onto the return. If the tax period is missing, see IRM 3.11.6.3.1, Tax Period.

    Note:

    If the tax period is missing, use these same instructions for determining the appropriate tax period. If unable to determine the correct tax period, refer to IRM 3.11.6.3.1, Tax Period.

  6. If no TC 150 has posted for the same tax period, follow the steps below to research for a TC 150.

    1. Look though entire return packet for a different TIN for the primary taxpayer, including taxpayer’s explanation. If working a married filing joint return, research for the TC 150 using the spouse's TIN.

    2. If a TC 594 is present, research the cross-reference TIN for the TC 150.

    3. Research for the TIN using the IAT Name Search Tool for both the taxpayer and the spouse to verify the taxpayer has not previously filed under a different TIN. It may be necessary to use multiple name combinations in order to locate the TC 150. See IRM 3.11.6.3.2, Taxpayer Identification Number (TIN). If research shows the TC 150 for the primary or secondary taxpayer was filed under a different TIN:
      - If the case is controlled, close the generic control base.
      - Under the TIN that has the TC 150 posted, open a control base to your IDRS number and use SPX-1040X as the activity.
      - Close the case to "MISC" .
      - Input a TC 971 AC 120.
      - Make a screen print of the IMFOLT, showing the TIN and posted TC 150, and attach it just below the entity section.
      - Route to CIS/AM.

    4. If there are dependents present on the return, research for a different TIN for the primary taxpayer using CC DDBKD or CC DUPED.

    5. Research the invalid side for a TC 150. If a TC 150 is present on the invalid side, route to CIS/AM.

    6. Research CC TRDBV for tax data. If the tax data is present and/or is pending (must be present on primary taxpayer for MFS (FS 3)) suspend case for 60 days from the received date and monitor for the TC 150 to post. Follow paragraph 9 below for instructions on suspending the return.

      Exception:

      Treat any status indicator containing REJECTED, DELETED OR VOIDED on CC TRDBV as if there is no tax data present (no TC 150). All other status indicators represent tax data (unpostable, resequenced, resequencing, posted with MFT update, etc.).

      Exception:

      If you find master file information on CC TRDBV, but there is not information posted on MFT 30 research CC IMFOLI to see if information has posted to MFT 32 which is where identify theft accounts are moved for resolution. Treat as identity theft and route. See IRM 3.11.6.6.4, Identity Theft.

      Note:

      A Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will not post as a TC 150.

    7. Research ERS inventory

      If processing a ... Then ...
      MEFP case
      • Research RRD to see if the original return was e-filed. If the original return is present on RRD and the "Processing Status" field is "ERS SUSPENDED" or similar, reroute to your local ERS per IRM 3.11.6.8.1, 1040-X MEFP Reassignment and Reroute Guide.

      • If the original return was paper filed, research ERS inventory using CC ERINV and CC ERINV@. If in ERS, reroute to your local ERS per IRM 3.11.6.8.1, 1040-X MEFP Reassignment and Reroute Guide.

      MEFS case
      • Research RRD to see if the original return was e-filed. If the original return is present on RRD and the "Processing Status" field is "ERS SUSPENDED" or similar, reroute to your local ERS per IRM 3.11.6.8.2, 1040-X MEFS Reassignment and Reroute Guide.

      • If the original return was paper filed, research ERS inventory using CC ERINV and CC ERINV@. If in ERS, reroute to your local ERS per IRM 3.11.6.8.2, 1040-X MEFS Reassignment and Reroute Guide.

      Paper case
      • Research RRD to see if the original return was e-filed. If the original return is present on RRD and the "Processing Status" field is "ERS SUSPENDED" or similar, route to your local ERS.

      • If the original return was paper filed, research ERS inventory using CC ERINV and CC ERINV@. If in ERS, reroute to your local ERS.

    Note:

    Refer to the 1040-X Job Aid for IMF File Location Codes for use with CC ERINV@

    .

  7. If the ERS Status is "100" or "900," suspend for 5 working days. If after the suspense period a TC 150 is still not on the account, route to ERS.

  8. Use the following stop numbers when sending a case to ERS per paragraph 6 above. Prior to sending to ERS, change the case control activity to "SNT2ERS."

    Reminder:

    The only ERS cases that are to be suspended are those that are in ERS Status "100" or "900." All other ERS Statuses are to be sent to ERS without delay.

    If ... Then ...
    The original return was e-filed
    • Austin – Mail Stop 6122

    • Kansas City – Mail Stop 6120

    • Ogden – Mail Stop 6120

    The original return was paper filed
    • Austin – Mail Stop 6122

    • Kansas City – Mail Stop 6120

    • Ogden – Mail Stop 6120

  9. If no TC 150 is found after all research has been exhausted and:

    1. No Form 1040 is attached, see IRM 3.11.6.4.4, Form 1040-X with No Form 1040 Attached (No TC 150).

    2. Form 1040 is attached, see IRM 3.11.6.4.2, Form 1040 Attached to Form 1040-X.

    3. No Form 1040-X is attached, see IRM 3.11.6.4.3, Amended Form 1040 with No Form 1040-X Attached.

    4. For Statute year return see, IRM 3.11.6.6.5, Statute Review.

Form 1040 Attached to Form 1040-X

  1. After researching for a TC 150 per IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150), follow the instructions below.

  2. Sometimes the 1040-X Unit will receive Form 1040 attached to Form 1040-X. Determine if the attached Form 1040 and Form 1040-X is for the same or different tax period.

  3. If the Form 1040 is for a different tax period than the Form 1040-X and:

    1. Form 1040 is being used as "support" for a carryback loss, keep the two returns together and treat as a carryback/carryforward claim.

    2. No TC 150 has posted for the tax period of Form 1040, detach Form 1040. Continue processing Form 1040-X.

  4. When processing or suspending a Form 1040 attached to Form 1040-X, staple the Form 1040 behind Form 1040-X.

    Note:

    If Form 1040-X is not signed, see IRM 3.11.6.3.4, Signature.

  5. When processing a MEFP or MEFS case and no TC 150 has posted for the same tax period, follow the table below.

    If ... And ... Then ...
    MEFP  
    • Print the entire amended return from RRD to PDF

    • Edit the PDF to circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS."

    • "X" Form 1040-X

    • Edit the PDF to add the received date

    • Edit the PDF the working/action trail information

    • Line through the direct deposit fields

    • Edit "MeF Return - Do not correspond for signature" in the signature area.

    • Route the document to Batching to be processed as an original per local procedures.

    MEFS
    1. Form 1040 matches

    2. Form 1040 does not match the Correct Amount, Column C, of Form 1040-X
      Note:Form 1040 may be notated As originally filed

    3. Two Form 1040s are attached to a Form 1040-X

      • One may be notated As originally filed and does not match the correct amount column

      • The second may be notated As amended and matches the correct amount column

    1. Take the following action:

      • Use the CIS Annotation tool to circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS."

      • "X" Form 1040-X

      • Annotate the received date if needed.

      • Annotate the working/action trail information

      • Line through the direct deposit fields

      • If the case is signed, annotate "CIS Image- Do not correspond for signature" in the signature area.

      • Reroute the document to Batching to be processed as an original per local procedures.

    2. Take the following action:

      • Convert taxpayer's Correct Amount figures using a Form 6114 or current year Form 1040, following local procedures.

      • Use the CIS Annotation tool to circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS" .

      • "X" Form 1040-X and the Form 1040 that does not match.

      • Annotate the received date

      • Annotate the working/action trail information

      • Line through the direct deposit fields

      • If the case is signed, annotate "CIS Image- Do not correspond for signature" in the signature area.

      • Reroute the document to Batching to be processed as an original per local procedures.

    3. Take the following action:

      • Use the CIS Annotation tool to circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS" .

      • "X" Form 1040-X and the Form 1040 notated "As originally filed" .

      • Annotate the received date

      • Annotate the working/action trail information

      • Line through the direct deposit fields

      • If the case is signed, annotate "CIS Image- Do not correspond for signature" in the signature area.

      • Reroute the document to Batching to be processed as an original per local procedures.

  6. If no TC 150 has posted for the same tax period, follow the table below when processing paper filed returns:

    If no TC 150 and ... Then ...
    1. Form 1040 does not match the Correct Amount, Column C, of Form 1040-X

    Note:

    Form 1040 may be notated "As originally filed"

    1. For Form 1040-X:

      1. Convert taxpayer's Correct Amount figures using a Form 6114 or current year Form 1040, following local procedures.

      2. Line through the direct deposit fields

      3. "X" Form 1040-X and staple Form 1040-X behind Form 1040 with any supporting documents.

      4. If Form 1040-X is signed, edit a notation the 1040-X is signed in the signature area of the conversion sheet.

    2. Staple Conversion Sheet to the front of the Form 1040, but below the entity section.

    3. Route to Batching to be processed as an original return per local procedures.

    2. Form 1040 does match the Correct Amount, Column C, of Form 1040-X,

    Note:

    Form 1040 may be notated with "As Amended"

    1. XForm 1040-X and staple it behind Form 1040 with any supporting documents.

    2. For Form 1040:

      1. Edit "No TC 150," the date and TE Stamp in the upper left margin of Form 1040.

      2. On the front page of Form 1040, circle out any indication that Form 1040 is amended, corrected or a copy.

      3. Line through the direct deposit fields

      4. If Form 1040 is not signed and Form 1040-X is signed, edit a notation the Form 1040-X is signed in the signature area of Form 1040.

    3. Route to Batching to be processed as an original return per local procedures.

    3. Two Form 1040 s are attached to a Form 1040-X
    • One may be notated "As originally filed" and does not match the correct amount column

    • The second may be notated "As amended" and matches the correct amount column

    1. For the Form 1040-X and the Form 1040"As originally filed"

      1. X both.

      2. Line through the direct deposit fields

      3. Staple them behind Form 1040"As amended" with any supporting documents.

    2. For Form 1040"As amended"

      1. Edit "No TC 150," the date and TE Stamp in the upper left margin of Form 1040.

      2. On the front page of Form 1040, circle out any indication that Form 1040 is amended, corrected or a copy.

      3. Line through the direct deposit fields

      4. If Form 1040 is not signed and Form 1040-X is signed, edit a notation the 1040-X is signed in the signature area of Form 1040.

    3. Route to Batching to be processed as an original return per local procedures.

    Note:

    If routing a Form 1040 to Batching that was received after April 22nd or the Form 1040 is a prior year and the received date is missing, edit the received date from the Form 1040-X onto the Form 1040.

Amended Form 1040 with No Form 1040-X Attached

  1. Research for a TC 150 per IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150). If no TC 150 has posted, follow the table.

    If processing a... Then ...
    MEFS case
    • Use the CIS Annotation tool to circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS" .

    • Edit your TE number.

    • Annotate the received date if needed.

    • Edit "No TC 150" and the current date in the upper left margin.

    • Line through the direct deposit fields

    • If the case is signed, annotate "CIS Image- Do not correspond for signature" in the signature area.

    • Reroute the document to Batching to be processed as an original.

    Paper case
    • Circle any indication that the Form 1040 is amended such as, "e-file GRAPHIC print - DO NOT PROCESS" .

    • Edit your TE number.

    • Edit the received date if needed.

    • Edit "No TC 150 " and the current date in the upper left margin.

    • Line through the direct deposit fields

    • Route the document to Batching to be processed as an original.

    Note:

    When it appears that Code & Edit has corresponded for a signature (i.e., Form 3531 attached or notated in the working trail) and the return is still unsigned follow normal procedures to route to Entity.

  2. If an undeliverable return is received see IRM 3.11.6.9.11, Undelivered Correspondence.

Form 1040-X with No Form 1040 Attached (No TC 150)

  1. After researching for a TC 150 per IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150), if no return has been filed, follow the table below.

    If ... And ... Then ...
    Processing a MEFS case or paper case and there is a disaster claim indication per IRM 3.11.6.6.2, Disaster Claims. No TC 150 is present Do not suspend the case. Route the case to CIS/AM per IRM 3.11.6.6.2.1, Processing a Disaster Claim, following local procedures.
    Processing a Statute year MEFS case or paper case No TC 150 is present Do not suspend the case. Follow IRM 3.11.6.6.5, Statute Review, for conversion and routing instructions.
    Working a MEFS case No TC 150 is present Suspend the case for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.
    Working a paper case No TC 150 is present Suspend the case for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.
    Working a paper case with No TC 150 is present A tax module has not been established for the amended return.

    Note:

    This occurs more often on a return with a TC 904 or if the taxpayer is a first-time filer.

    Use the IAT ACTON tool to establish a dummy module. Then suspend the case for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.

    Reminder:

    CC MFREQD should not be used if the taxpayer has never previously filed a return.

    Working a MEFS case or paper case with No TC 150 is present The taxpayer previously had an ITIN or IRSN and is switching to a valid SSN Suspend the case using the SSN for 60 days from the IRS received date. Use the appropriate suspense activity code per IRM 3.11.6.2.1.1, 1040-X Suspense Activity Codes.

  2. After the 60 day suspense period has ended and there is still no posted or pending TC 150 follow the table below.

    If processing a ... And ... Then ...
    MEFS or paper case There are payments on the account indicating a balance due, or a tax increase, or credit decrease on the amended return Route the return to CIS/AM.
    MEFS case There are no payments on the account, or no tax increases, or credit decreases on the amended return Send Letter 178C and do not input a TC 290 for .00. Use paragraphs A, 5, and n with fill-in: We have no record of receiving your original return, therefore we cannot process your Form 1040-X, Amended U.S. Individual Income Tax Return. Please complete and submit a new Form 1040, U.S. Individual Income Tax Return, being sure to include your amended changes and your original signature(s). Please do not attach a Form 1040-X to your new Form 1040.
    Paper case There are no payments on the account, or no tax increases, or credit decreases on the amended return Send Form 8009-A with box 7. Use fill-in: We have no record of receiving your original return, therefore we cannot process your Form 1040-X, Amended U.S. Individual Income Tax Return. Please complete and submit a new Form 1040, U.S. Individual Income Tax Return, being sure to include your amended changes and your original signature(s). Please do not attach a Form 1040-X to your new Form 1040.

Claims Returned from Other Areas

  1. Claims routed to another function may be returned for processing.

  2. Determine if the return requires:

    • Routing to the next highest priority. Circle out previous working trails.

    • Additional research.

    • Input the adjustment (the return has been cleared from the area/function it was routed).

  3. If an adjustment is input, add "Adjusted per XXXX" in the remarks.

  4. Cases returned from another area for processing may not meet SP criteria. If so, route to CIS/AM.

Master File Verification and Math Verification

  1. Master file verification is required on all amended returns, CPs, and any miscellaneous claim adjustment prior to:

    • Inputting an adjustment

    • Initiating correspondence

      Exception:

      Master file verification is not required when corresponding for a missing tax period or TIN, or when a return has been perfected.

  2. Master file verification requires the comparison of lines 1-15 Column A on Form 1040-X, with CC IMFOL or CC TXMOD.

    Caution:

    The American Rescue Plan Act of 2021 allows the taxpayer to exclude $10,200 (MFJ - $10,200 for each spouse) of Unemployment Compensation from income for the tax year 2020. Taxpayers may file a Form 1040-X with an incomplete Column A or incorrect Column A due to systemic recovery performed on these accounts. Refer to IRM 21.6.6.2.54, Unemployment Compensation Exclusion due to American Rescue Plan Act (ARPA) of 2021, and the 2020 Unemployment Compensation Exclusion (UCE) FAQs found on irs.gov for additional information regarding the UCE.

    1. If any combination of lines in Column A do not match CC TXMOD and no math error (MTH-ERR) is present, then Math verification is required.

    2. Review AMS/CIS Case Notes on e-filed amended returns and CIS imaged cases to be worked by SP 1040-X.

    3. Be sure to consider all previous adjustments. If no changes can be identified see IRM 3.11.6.5.1, Duplicate Returns and Identical Open CIS Cases.

    4. When Column A does not match and an amended Form 1040 series is attached, matching Column C, adjust to the Column C amount(s).

    5. For single page returns with a payment made within a few days of the received date or "W-7" stamped returns, research IDRS to determine if it was for a payment or ITIN renewal only. If the preceding scenarios are applicable, treat as a duplicate return. See IRM 3.11.6.5.1, Duplicate Returns and Identical Open CIS Cases.

  3. When the amount shown on a supporting form or schedule differs from the amount shown on the Form 1040-X:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ adjust using the 1040-X amount.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

  4. When a dependent is being removed you must also verify the taxpayer is removing credits associated with that dependent.

  5. Math verification is required when one or more of the following are met:

    1. There is a total tax change (positive or negative) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Column A entries do not match TXMOD or IMFOL (no math error code is present) and paragraph (2)(d) above does not apply.

    3. A math error is present. Also see IRM 3.11.6.13.1.1, Math Error Response.

    4. There are amounts that are blank, illegible or incorrect.

    Exception:

    Math verification is not required when the claim does not meet SP criteria, the entry is off by a dollar due to rounding or the error can be determined to be a misplaced entry that results in no difference between the taxpayer’s expected refund/balance due and the overall adjustment being made.

  6. Math verification includes doing the following:

    1. Verifying the math on the entire amended return, including any forms, schedules and worksheets that are related to the change.

    2. Verifying the taxpayer’s modified entries using the forms attached to the claim, schedules, worksheets, taxpayer remarks, and IDRS research.

    3. Verifying the corrected tax computation.

    4. Verifying any additional taxes on line 10 as reported by the taxpayer are calculated correctly.

    5. Verify all income-based items on claims involving an income change. Recalculate the items when the income changes, even if the taxpayer does not address them.

  7. If you are unable to "perfect" the return based on information submitted and through IDRS research, correspond requesting clarification:

    If ... Then ...
    There is an unexplained amount that results in a change ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to lines 11-15, Column B Accept the amount and adjust using the taxpayer’s Column B figures.
    The taxpayer's Column A figures (original amount) do not match IDRS Correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.
    For any other reason Correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

  8. When math verifying the return and an error is discovered, re-compute the correct amounts using the information supplied and IDRS research. After perfecting the Total Tax (line 11) and the computed lines 12 - 15 amounts are:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust using the taxpayer’s figures.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡, adjust the account using your recomputed figures see IRM 3.11.6.13.1, Inputting a Corrected Adjustment.

Duplicate Returns and Identical Open CIS Cases

  1. A duplicate condition occurs when:

    • Multiple open CIS cases are identical.

    • An e-filed amended return matches the most recent adjustment/filing figures

    • A paper filed amended return matches the most recent adjustment/filing figures.

  2. When other open CIS case(s) are present and assigned to the generic queue, determine if the other case(s) are identical to your case. If so, process as follows:

    1. Link the cases using the "Link" function on the "Active Case" page.

    2. In the Link Case popup, input the CIS Case ID of the case(s) to be linked, one at a time.

    3. Notate "duplicate amended return" in the notes section of the identical case(s).

    4. Reassign the unassigned case to your CIS case inventory.

    5. Close each CIS case linked to the original case using the "Close as Misc" button.

    6. Continue processing the original CIS case per normal procedures.

    Reminder:

    If a case is open to another tax examiner at your service center, suspend the case to your manager or lead per IRM 3.11.6.6.13, Open Cases / Open Control Base, and leave a case message indicating the other CIS Case ID.

  3. Prior to treating an e-filed or paper filed amended return as a duplicate, review the return and attachments for routing criteria. If routing criteria is located, follow the appropriate procedures.

    1. If the return is a duplicate but the taxpayer is requesting an additional action, follow general processing procedures.

    2. Research IDRS for taxpayer correspondence. Research the type of letter(s) that have been sent. Route to the originating area following local procedures. This includes the Letter 12C requesting a taxpayer signature.

    3. When it appears that Code and Edit has corresponded for a signature (Form 3531 attached or notated in the working trail) and the return is still unsigned. follow normal procedures and route to Entity.

    4. If the return is a duplicate, do not correspond for missing forms, schedules, or signature(s).

  4. When processing an e-filed return, or CIS case to be worked in SP, or a paper filed amended return, continue researching to determine the reason the taxpayer filed the form.

    If ... And ... Then ...
    The taxpayer has requested a processable change that does not cause a change to a line-item dollar amount
    1. The action has a specific reason code

    2. The action does not have a specific reason code

    Input a TC 290 .00 with:
    1. the appropriate reason code.

    2. Reason code 099.

    No change and no action is required   Input a TC 290 .00 without a reason code.

    Note:

    If there is a prior pending adjustment, input a post delay code.

  5. Once a Form 1040/A/EZ/SR is identified as an amended return and it will revert the module back to the original filing, look for any indication as to why. If no indication is found, then treat the return as classified waste following local procedures. If an active Combat Zone return, per IRM 3.11.6.6.21, Combat Zone, will revert the module to the original filing, input a TC 290 .00 without a reason code.

Sorting, Routing, and Priority Processing

  1. Before inputting an adjustment or corresponding, identify all documents or conditions requiring other actions. Research IDRS for transactions that require routing to another function.

  2. Occasionally, a Form 4442, Inquiry Referral, or E-4442, may be received from another area. These requests are to be expedited for processing.

  3. When routing

    • Identify all possible route out criteria, then route to the highest priority as stated in paragraph 3 below.

    • Follow specific IRM instructions.

    • Follow local procedures.

    • MEFP and MEFS amended returns are to be reassigned or rerouted through CIS whenever possible. See IRM 3.11.6.8, 1040-X MEFP and MEFS Reassignment and Reroute Guide.

      Caution:

      When reassigning a case through CIS, do not close the case control. Closing the case control will cause an "E-1" error.

    • If the TC 150 has not posted, see IRM 3.11.6.4.1, Transaction Code (TC) 150 Research (No TC 150).

    • Do not input or update CC REQ54, CC DUPED, CC DDBCK or CC ENREQ unless otherwise instructed by a specific IRM section.

    • Close the case using control category "MISC " unless specific instructions are provided.

      Caution:

      Use the “close” function when sending a secure message or e-fax.

    • Leave a working/action trail per IRM 3.11.6.2.5, Working Trail.

    Note:

    Keep all related tax years together if possible.

    Exception:

    Do not route non-statute year returns to the Statute unit unless they are attached to a statute year return for informational purposes. Do not route a non-AUR cases to AUR unless they are attached for informational purposes

  4. The priority order for routing is as follows, specific IRM references take precedence over these general instructions:

    Caution:

    When processing a MEFP or MEFS case and routing criteria is identified for disaster, carryback, carryforward, identity theft, injured spouse, or a zero return, you must check for international criteria. If international criteria is present, follow reassignment procedures in IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    1. Form 4442 and E-4442 Inquiry Referral

    2. Taxpayer Protection Program (TPP)

    3. Office of Fraud Enforcement (OFE)

    4. Disaster Claims

    5. Carryback or Carryforward Claims (CIS/AM)

    6. ID Theft

    7. Statute

    8. Exam (open AIMS cases)

    9. Frivolous

    10. Criminal Investigation (CI) Scheme Development Center (SDC)

    11. Return Integrity and Verification Operation (RIVO)

    12. Category A (CAT-A)

    13. Underreporter (AUR/URP)

    14. International

    15. Premium Tax Credit (PTCX)

    16. Adjustment Function Criteria (CIS/AM) or controlled to an AM employee

    17. Open cases (open to an employee other than an area listed above)

    18. All other claims

    Note:

    Specific routing instructions found within the designated priority order take on that priority.

    Example:

    A case has a -W freeze, a -L Freeze (status code 12) on the account, and it also meets AUR open case criteria. In this instance, the three possible routing destinations for this claim are Exam, AUR, CIS/AM. Since Exam is the highest priority and has specific instructions regarding the -W freeze, the case bypasses the AUR criteria and will be routed to CIS/AM.

  5. If working a MEFS case and the case requires Form 1040-X to be converted to a Form 1040 or Form 6114, follow the association process in IRM 3.11.6.9.15, Association, Forms, Schedules, and Other Documents to MEFP and MEFS Cases, prior to routing.

  6. See IRM 3.11.6.6.23.1, Transaction Code (TC) 971 and Action Codes, for TC 971 Action Codes and routing destination for specific items.

  7. See IRM 3.11.6.3.5, Processing Presidential Election Campaign Fund (PECF) Requests, for editing instructions for ISRP input of "Dummy PECF" instructions.

Form 4442 and E-4442, Inquiry Referrals

  1. Submission Processing (SP) may receive Form 4442, Inquiry Referral, or E-4442 from another Business Operating Divisions (BOD) regarding cases in SP 1040-X inventories. These referrals are to be expedited and addressed within 20 days of receipt.

    Note:

    Review AMS for E-4442 referrals.

    If ... And ... Then ...
    Form 4442 or E-4442 is received The referral is requesting the case be transferred to the requestor Route or reassign the case to requestor as requested.
    Form 4442 or E-4442 is received The referral is requesting the case be transferred to another area Route or reassign the case to the other area as requested with the referral.
    Form 4442 or E-4442 is received The referral is requesting an action be taken on the account that does not meet SP criteria Route or reassign the case to AM with the referral.
    Form 4442 or E-4442 is received The referral is requesting an adjustment action be taken on the account that meets SP criteria Process as normal and complete Part III Section A, items 26 through 29, and C, item 31, on the referral.

    Note:

    In the Response/Final Resolution section of briefly describe the adjustment action taken.

    Example:

    Adjusted EIC and CTC as requested on Form 1040-X.

Disaster Claims

  1. A qualified disaster loss is an individual’s casualty or theft loss of personal-use property that is attributable to a major disaster declared by the President under section 401 of the Stafford Act in 2016, and January 1, 2018 through February 18, 2020. Verify the taxpayer had a loss in a qualified disaster area via the IRS Disaster Assistance Program.

  2. The Disaster Tax Relief Airport and Airway Extension Act of 2017, the Tax Cuts and Jobs Act (TCJA), the Bipartisan Budget Act of 2018, and the Further Consolidated Appropriations Act, 2020 provide special rules for some qualified disaster losses. For a list of the qualifying disasters, see the IRS Disaster Assistance Program. The special rules include:

    • The $100 limitation per casualty increased to $500

    • The 10 percent of AGI limit does not apply

    • The standard deduction is increased by the net qualified disaster loss

    A qualified disaster loss is a personal casualty loss caused by:
    • A Presidentially declared disaster that occurred in 2018 or 2019, but before December 21, 2019.

    • A Presidentially declared disaster that occurred beginning January 1, 2020, but before February 26, 2021.

    • Hurricane Ida disaster after August 28, 2021.

  3. For tax years 2018 through 2025, an individual’s loss of personal-use property is deductible only if the loss is attributable to a federally declared disaster.

    Exception:

    Personal casualty or theft loss can only be deducted to the extent of casualty gains.

  4. Taxpayers who live in a Federal "Declaration of Emergency or Major disaster" area may file disaster claims. The IRS may place a -O/-S freeze on the module for the zip codes of the affected areas to indicate the taxpayer resides in a disaster area. Disaster claims are identified by either:

    • -O and/or -S freeze on the module

    • Taxpayer mentions the loss is attributable to a federally declared disaster

  5. A disaster claim is filed using Form 4684, Casualties and Thefts, and is reported in addition to the standard deduction on either:

    • Schedule A, line 15 (for 2018 through 2025)

    • A deduction to income on Form 1040

  6. Follow normal processing procedures if the return is not a disaster claim as defined in (1) or (2) above.

    Note:

    A non-disaster claim is a casualty loss that is not attributable to a federally declared disaster.

  7. Claims that have CAT-A criteria, see IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

  8. If a disaster claim has SP 1040-X route-out criteria (i.e., CAT-A, Statutes, Underreporter, CIS/AM, etc.), separate the disaster claim from the non-disaster returns being routed:

    • If routing to CIS/AM and the disaster claim is related to paragraph 2 above, use "KATX" as the working trail otherwise, use "DSTR" .

    • For all other routing, edit "DSTR " or "KATX" , as appropriate, and the routing destination as a working trail.

  9. Form 4684 is required for taxpayers filing a disaster claim. Correspond using Letter 324C for the following:

    • The Form 4684 is missing.

    • The disaster claim is missing a signature (refund or balance due return). Suspend the return until you secure a signature only on refund returns.
      - If a reply is received within 45 days, continue processing the return and input under Blocking Series 05.
      - If no reply is received after 45 days, send a Letter 916C, per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP). Input a TC 290 .00 to file the return.

    • The federally declared disaster designation is not listed in Section A(1) of Form 4684 (for 2018 through 2025).

  10. Do not mail the return back to the taxpayer in a disaster area.

Processing a Disaster Claim
  1. If a TC 150 has not posted on a disaster claim, route to CIS/AM per local procedure.

  2. Taxpayers may claim a disaster loss in the year the disaster loss was sustained or may elect to claim a disaster loss in the tax year preceding the disaster year.

    If ... Then ...
    The loss is claimed for the year of the disaster year The return must be filed within three years of the due date, without extensions.
    The loss is claimed for the year preceding the disaster The election must be made on or before 6 months after the due date for filing your original return (without extensions) for the disaster year.

    Example:

    A disaster occurs in August 2020, and the loss is sustained in 2020. The taxpayer can elect to timely file the disaster loss for 2019 until October 15, 2021. Alternatively, the taxpayer could choose to file the loss for the 2020 tax year and has until April 15, 2024 to claim the loss via an amended return.

  3. If a disaster claim is filed late, per (2) above, route to CIS/AM.

  4. To process a disaster claim, check CC TXMOD for an -O/-S Freeze on the account.

    If ... And ... Then ...
    -O/-S freeze code is present   Process the claim.
    -O/S freeze code is not present
    1. Balance due

    2. Refund

    1. Route to CIS/AM per local procedure.

    2. Process the claim.

    Note:

    If the taxpayer requests the refund be issued to a name and/or address other than the one shown on Masterfile (e.g., temporary address, taxpayer representative, in care of name and/or address), route to CIS/AM for a manual refund.

  5. If processing a disaster claim and Priority Code 8 is required, route to CIS/AM.

  6. Qualifying individuals may be identified by a posted TC 971 AC 086 and/or 087 on the eligible modules. Qualified individuals include those individuals that lived in a Federally Declared Disaster area on or near the time of the disaster.

  7. Below are procedures for processing these claims:

    1. Is Form 4684, Casualties and Thefts, attached? If not correspond with Letter 324C. If attached, determine if the taxpayer used the modified computation. If the taxpayer qualified for the modified computation but did not take advantage, edit the amount shown on Form 4684, line 11 from $100 to $500 and change line 17 to $0.

    2. Manually calculate itemized deductions shown on Schedule A. Enter the total itemized deduction in the deduction field of the xMend tool.

    3. If the total itemized deduction is less than the standard deduction, the taxpayer is entitled to an increased standard deduction. See IRM 3.11.6.13.2.2, Standard and Itemized Deductions (Line 2).

      Example:

      The total itemized deductions shown on Schedule A is $20,000. The Standard deduction is $12,600 plus a $15,000 loss reported on Form 4684. The taxpayer is entitled to a standard deduction of $27,600.

    4. Use RC 076 if adjusting Schedule A and change the Category Code to "KATX" .

    5. Use RC 092 if adjusting the Standard Deduction and change the Category Code to "KATX" .

    6. Correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins, if changing the taxpayer refund amount.

Carryback/Carryforward

  1. ALL Carryback/Carryforward (CB/CF) claims are to be routed to AM. Follow any local procedures for separating CB/CF claims from other CIS/AM issues.

    Note:

    If the case is 60 days or less before the ASED expires, or if the ASED has expired, prepare a Form 3210 and notate CB/CF/Statute Imminent in the remarks area. Leave a CC ACTON history item "STAT IMNT" .

  2. If working a MEFP or MEFS case identify if the claim as Carryback or Carryforward. Then reassign the case to the appropriate queue per IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    Note:

    For more information on how to identify a Carryback or Carryforward claim, see Technical Communication Document (TCD) 0212

    .

  3. A taxpayer who has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment can file an application or claim, also referred to as a carryback claim (RINT) or tentative refund (TENT), for adjustment or refund. The tax year in which the loss occurred is the loss year. The tax year the loss is applied to is the gain year.

  4. NOL occurs when deductions exceed income from all sources. In computing a NOL, non-business deductions, such as the deduction for mortgage interest on a personal residence, are deductible only to the extent of non-business income, such as investment income on a personal investment. Deductions that relate to a trade or business, work as an employee, or casualty or theft are not limited in computing an NOL.

    Note:

    For 2018 through 2025, miscellaneous itemized deductions such as the deduction relating to work as an employee are not allowed, and thus are not considered in determining an NOL for those years. For 2021 and after, most NOLs may only be carried forward. After 2020, only NOLs attributable to the trade or business of farming and NOLs incurred by non-life insurance companies are eligible for carryback

  5. A RINT is claimed on Form 1040-X, U.S. Individual Income Tax Return, an amended Form 1040, U.S. Individual Income Tax Return, an amended Form 1040-SR, U.S. Tax Return for Seniors, or an amended Form 1040-NR, U.S. Nonresident Alien Income Tax Return, resulting from a carryback of:

    • A NOL

    • A NCL

    • Unused general business credits and other credits

    • Section 1256 contract losses

    • Claim-of-right

  6. A TENT is claimed on Form 1045, Application for Tentative Refund. A Form 1045 can be filed by individuals, estates or trusts to apply for a quick tax refund resulting from the carryback of:

    • A NOL

    • Unused general business credits

    • A net section 1256 contract loss

    • An overpayment of tax due to a claim of right adjustment under section 1341(b)(1)

  7. A NOL occurs when certain deductions exceed income from all sources. Only deductions that relate to a trade or business, work as an employee, or casualty or theft losses can create a NOL. Once computed, a NOL is carried to other tax years as an NOL deduction. A NOL deduction reduces the taxable income for the taxable year to which the NOL is carried, and may allow a refund for taxes already paid if the NOL is carried back to an earlier year. Any NOL remaining after computing the amount of the NOL absorbed in preceding years may be carried to later years.

    Note:

    Miscellaneous itemized deductions such as work as an employee are disallowed for tax years 2018 through 2025 and thus are not considered in determining an NOL for those years.

  8. A NCL for individuals occurs when capital losses exceed capital gains, plus a limited amount of ordinary income ($3,000 Married Filing Joint, or $1,500 Married Filing Separately). A NCL can only be carried forward on an IMF (Individual Master File) return.

  9. Unused general business credits and other credits.

    Credits Carry Back Carry Forward
    Form 1116, Foreign Tax Credit

    Note:

    Certain taxpayers may file Form 1118, Foreign Tax Credit - Corporations. Route these cases to CIS/AM.

    1 year 10 years
    Form 3800, General Business Credit 1 year 20 years
    Form 5695, Residential Energy Credits No Unlimited (until used)
    Form 8396, Mortgage Interest Credit No 3 years
    Form 8839, Qualified Adoption Expenses No 5 years
    Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit No Unlimited (until used)

  10. An individual taxpayer can carryback section 1256 contract(s) losses three years but can only apply them to section 1256 contract(s) gains.

  11. A claim of right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments. The taxpayer might mention Regulation 5.6.411.1(d).

  12. Indications that a taxpayer is trying to take a carryback are:

    • The Form 1040-X line 1 carryback box is checked.

    • The Form 1040-X line 7 carryback box is checked.

    • A notation of NOL Carryback on the return, in the Form 1040-X, Part III, Explanation of Changes, or other attached documents.

    • Form 1045, Application for Tentative Refund, and/or supporting schedules (Schedule A-NOL, Schedule BNOL Carryover, or Schedule D) are attached.

    • Schedule K-1 from a partnership, S corporation, estate, trust, or similar wording is attached for the year of the loss.

    • Typically, section 1256 contract losses are reported on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, with box D checked. The losses might also be mentioned in the explanation of changes or other attachments.

    • Claim-of-right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments. The taxpayer might mention Regulation 5.6.411.1(d).

      Note:

      A Claim of Right Adjustment can be entered on line 2 or line 15 of the 1040-X or Schedule A line 16.

    • Form 1116, Foreign Tax Credit. Part III line 10.

    • Form 3800, General Business Credit, Part I lines 5, Part II line 35, and Part III box D is checked.

  13. Indications that a taxpayer is trying to take a carryforward are:

    • A notation of NOL Carryforward, or Carryover on the return, in the Form 1040-X, Part III, Explanation of Changes, or other attached documents.

    • A notation of an election to forgo the carryback period for any tax year and carry the entire NOL forward.

      Reminder:

      Check TRDBV for e-filed returns look for the literal "ELECTION" . If present, the election has already been made. Do not send the as CB/CF.

    • Form 1040 has a change on line 21, Other income.

    • Schedule K-1 from a partnership, S corporation, estate, trust, or similar wording is attached for the year of the loss.

    • Typically, section 1256 contract losses are reported on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, with box D checked. The losses might also be mentioned in the explanation of changes or other attachments.

    • Claim-of-right adjustment under IRC 1341(b)(1) is mentioned in the explanation of changes or attachments. The taxpayer might mention Regulation 5.6.411.1(d).

      Note:

      A Claim of Right Adjustment can be entered on line 2 or line 15 of the 1040-X or Schedule A line 16.

    • Form 1116, Foreign Tax Credit, Part III line 10.

    • Form 3800, General Business Credit, Part I line 4 or Part I line 4 box is checked, Part II line 34 or Part II line 34 box is checked, Part III box C is checked, and Part III credit identified as "carryforward only" .

    • Form 5695, Residential Energy Credits, Part I lines 12 and 15.

    • Form 8396, Mortgage Interest Credit, Part I lines 4, 5 and 6, and Part II lines 14, 16, and 17.

    • Form 8839, Qualified Adoption Expenses, Part II line 13.

    • Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit.

  14. Do not treat the following claims as CB/CF claims:

    • The term "carryforward" can be used when identifying certain credits that can apply to future tax years. Since these are not restricted interest claims they are not CB/CF claims.

    • Schedule D loss that exceeds the $3,000 loss limit. Taxpayers are entitled to "roll-over" or "carryforward" any Schedule D loss that is greater than $3,000. Process these cases with RC 013.

    • Carryover of an IRA.

    • Schedule A, Itemized Deductions, with an entry in the Gifts to Charity section on "Carryover from prior year."

    • Cases where none of the CB/CF issues are changing (e.g., A NOL is indicated on line 21 of Schedule 1 but is not changing).

Identity Theft (IDT)

  1. Identity Theft (IDT) can be indicated by the taxpayer’s explanation, by markers on the account, or by suspicious changes identified by tax examiners.

  2. Accounts the IRS has identified as IDT contain one of the following indicators. If one of the following indicators is found, see paragraphs 3 and 7 below.

    • CC ENMOD, IMFOL, or TXMOD: TC 971 with AC 506, 522 (with the literals UNWORK or IRSID), or 524 (if the 1040X is for a tax year after the date of death). See paragraph 3 below for additional information.

      Note:

      The Secondary Date (SECONDARY-DT>) field of one of the above indicators will reflect the tax year affected by identity theft. If the tax period in question matches the year of the Secondary Date, see paragraphs 3 and 7 below.

      Exception:

      AC 524 may or may not have a SECONDARY-DT field entry. AC 524 is an identity theft indicator used to lock the account of deceased taxpayers. It prevents a deceased taxpayer’s TIN (SSN or ITIN) from being used as the primary, secondary, or dependent TIN on a current or subsequent year federal income tax return. The TC 971 AC 524 indicator is applied systemically to the account and is effective the following year after the date of death.

      Example:

      Taxpayer’s date of death is 6/03/2020. A return for TY 2020 will post but a return for TY 2021 will not be allowed to post.

    • CC TXMOD or IMFOLT: TC 971 AC 111.

    • CC IMFOLI: MFT 32 is indicated for the Tax Year and No TC 150 is present on MFT 30. See paragraph 7 below.

    Note:

    The IDT literal on CC ENMOD, CC IMFOLE, or other TC 971 Action Codes should not be used as an IDT indicator.

  3. Verify IDT indicators have not been reversed prior to routing. If a TC 972 is present reversing the IDT indicator, do not route the return unless there are additional indicators present.

  4. A taxpayer can self-identify as a victim of IDT by:

    • Stating in the Explanation of Changes on Form 1040-X or a separate statement

    • Completing Form 14039, Identity Theft Affidavit

    • Responding to IRS correspondence related to IDT

  5. If the taxpayer indicates their dependent is a victim of IDT, route to CIS/AM. The taxpayer can indicate their dependent is a victim of IDT by:

    • Stating in the Explanation of Changes on Form 1040-X or a separate statement.

    • Completing Form 14039, Identity Theft Affidavit.

    • Responding to IRS correspondence related to IDT.

  6. Tax Examiners may identify suspected IDT when the return does not master file verify and when certain account changes seem suspicious such as large, unusual or questionable line-item changes. When this occurs use the following research steps to aid in determining if the return should be routed as IDT:

    1. Use CC RTVUE to verify:
      - Address for the first return(s) filed
      - Dependents
      - Type of Income
      - Filing Status
      - Schedules and Forms filed

    2. Use CC TRDBV to verify:
      - Significant changes in the filing history
      - Occupation
      - Requested method of refund payment
      - Tax Preparer
      - Multiple attempts to file a rejected return

    3. Use CC DDBCK to verify:
      - Dependents and/or credits claimed on the original return

    4. Use CC IMFOLI to verify:
      - Number of years the TIN has been used
      - Filing status changes
      - Method of filing: paper or e-file

    5. Use CC IRPTR to verify:
      - Comparative review of reported income and payor information
      - Previous and current employer
      - Previous address

    Reminder:

    Before routing as IDT, you must have multiple suspicious changes between the original filing and the amended filing.

  7. Once a return is identified as being an IDT return:

    If ... Then ...
    Form 1040-X
    • In the upper left-hand corner of the return notate ID Theft.

    • Route to CIS/AM

    Form 1040 series
    • In the upper left-hand corner of the return notate PAO (Process as Original)

    • Circle out any notation that suggests the return was previously filed

    • Route to Batching

    Form 1040-X with Form 1040
    1. If a TC 150 is posted (or pending):

      1. Move the Form 1040-X to the front

      2. Route to CIS/AM with working trail "ID Theft"

    2. If no TC 150 is posted or pending:

      1. "X" Form 1040-X and move the Form 1040 to the front

      2. Edit PAO in the upper left-hand corner of the return

      3. Circle out any notation that suggests the return was previously filed

      4. Route to Batching

    Undeliverable Route to Entity
    Statute returns Route the return to IDTVA Statute:
    • Austin - 6539 AUSC

    • Kansas City - MS 6507 C2 KCSC

    • Ogden - Route to Kansas City address, MS 6507 C2 KCSC

Taxpayer Protection Program (TPP)
  1. The Taxpayer Protection Program (TPP) is for cases where potential IDT has been identified. The taxpayer is sent a Letter 4883C requiring the taxpayer to authenticate through the TPP.

  2. Route all cases selected for the TPP to CIS/AM. TPP cases can be identified by the following:

    • Unpostable TC 150 with unpostable code (UC) 1260

    • TC 971 AC 124

    • TC 971 AC 124 with either an unpostable TC 150 UC 1260 or CC TRDBV shows the return is unpostable

    • TC 971 AC 129 with Misc>"NNNNNNNNNNNNNN 1040X" on CC IMFOL and CC TXMOD

    Note:

    NNNNNNNNNNNNNN = DLN of MeF Return

Statute Review

  1. Beginning January 1, 2023 all statute year amended returns for tax year 2019 and prior with a tax increase or credit decrease must be sent to the Statute unit. Additionally, statute year returns with no TC 150 present must be sent to the Statute unit.

    Note:

    IDRS research is required to determine if the case is a tax increase or credit decrease.

    Reminder:

    Per IRM 3.11.6.6, Sorting, Routing, and Priority Processing, Disaster, Carryback/Carryforward, and Identity Theft, are a higher routing priority than Statute.

  2. For statute imminent cases (the ASED is 90 days or less), hand carry to Statute per local procedures.

    Reminder:

    Only cases described in paragraph 1 above need to be routed to the Statute unit.

    Note:

    Elevate any statute imminent routing issue(s) to the SP HQ Analyst.

  3. MEFP cases and MEFS cases are sent to the Statute unit by using the suspense function within CIS.

  4. Paper cases are sent to the Statute unit by routing the case.

  5. Follow the procedures in the table below to suspend a MEFP case or MEFS case to the Statute unit:

    If ... And ... Then ...
    1. The case has a tax increase or a credit decrease

    Exception:

    A claim to decrease withholding is not considered a credit decrease and is processable without statute involvement.

    Exception:

    Route to CIS/AM any case regardless of any tax increase/credit decrease involving any of the following:
    - A signed consent or request to extend the statute of limitations.
    - Filing status changes to MFJ.
    - Cases requiring a manual refund.
    - A statement of Financial disability.

    A TC 150 is present
    1. Input a TC 971 AC 014.

    2. Suspend the case to Statute per IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" , see IRM 3.11.6.6.5.1, Processing Statute Cases.

    2. Statute year Form 1040 with no Form 1040-X attached. A TC 150 is not present
    1. Input a TC 971/014.

    2. Suspend the case to Statute per IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original per local procedures.

    3. Statute year Form 1040-X, an original Form 1040 or an "As Amended" Form 1040 is attached A TC 150 is not present
    1. Follow the procedures in IRM 3.11.6.4.2, Form 1040 Attached to Form 1040-X, paragraph (5) except suspend the case to Statute Unit for clearance.

    2. Input a TC 971 AC 014.

    3. Suspend the case to Statute per IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original per local procedures.

    4. Statute year Form 1040-X A TC 150 is not present
    1. Convert Form 1040-X to a Form 1040 or Form 6114.
      Reminder: If working a MEFS case, follow the association process in IRM 3.11.6.9.15, Association, Forms, Schedules, and Other Documents to MEFP and MEFS Cases, prior to sending to Statute.

    2. Input a TC 971 AC 014

    3. Input a CC ACTON history of "X21502STAT."

    4. Suspend the case to Statute per IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, or IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, as appropriate.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original per local procedures.

  6. Follow the procedures in the table below to send a paper case to the Statute unit:

    If ... And ... Then ...
    1. The case has a total tax increase or a refundable credit decrease

    Exception:

    A claim to decrease withholding is not considered a credit decrease and is processable without statute involvement.

    Exception:

    Route to CIS/AM any case regardless of any tax increase/credit decrease involving any of the following:
    - A signed consent or request to extend the statute of limitations.
    - Filing status changes to MFJ.
    - Cases requiring a manual refund.
    - A statement of "Financial disability."

    A TC 150 is present
    1. Input a TC 971 AC 014.

    2. Keep all related statute tax years together.

    3. Route the case to Statute.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" , see IRM 3.11.6.6.5.1, Processing Statute Cases.

    2. Statute year Form 1040 with no Form 1040-X attached A TC 150 is not present
    1. Input a TC 971/014.

    2. Route the case to Statute.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original. See IRM 3.11.6.4.3, Amended Form 1040 with No Form 1040-X Attached.

    3. Statute year Form 1040-X, an original Form 1040 or an "As Amended" Form 1040 is attached A TC 150 is not present
    1. Follow the procedures in IRM 3.11.6.4.2, Form 1040 Attached to Form 1040-X, but do not route to Batching.

    2. Input a TC 971 AC 014.

    3. Route the case to Statute.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original per local procedures.

    4. Statute year Form 1040-X A TC 150 is not present
    1. Convert Form 1040-X to a Form 1040 or Form 6114.

    2. Input a TC 971 AC 014.

    3. Input a CC ACTON history of "X21502STAT."

    4. Route the case to Statute.

    Exception:

    If the return is stamped "Statute Cleared" or "No Statute Issue(s)" send to Batching to be processed as an original per local procedures.

  7. If the case is a Substitute for Return (SFR), see IRM 3.11.6.6.17.5 Automated Substitute For Return (ASFR) and Non-Filer Return (NFR).

  8. If research of the return or the account indicates Identity (ID)Theft, forward to IDTVA. See IRM 3.11.6.6.4, Identity Theft. Possible ID Theft indicators include:

    • Form 14039, Identity Theft Affidavit, or police report

    • Identity Theft written on the return or in a statement

    • Form 8948, Preparer Explanation for Not Filing Electronically, stating MeF reject because primary or secondary TIN was previously used

    • TC 971 AC 506, 522 (with the literals UNWORK or IRSID), 524 (if the 1040X is for a tax year after the date of death)

    • Open control to IDTVA

  9. If an amended Form 1040 is received in the 1040-X unit and the amended Form 1040 is stamped "Statute Cleared" , return the document to the Statute Unit.

Processing Statute Cases
  1. Use the following guidelines when processing a statute year case:

    Note:

    If a case is stamped "No Statute Issue(s)" , continue processing the case. If a Form 1040 is stamped "Statute Cleared" see IRM 3.11.6.6.5, Statute Review.

    1. Open case controls with a category of ST04 or -X04 meeting SP processing criteria should be worked by placing the control base in "B" status and upon case completion place the control base back in "A" status.

    2. Without regard to the ASED/RSED, Statute cases not meeting SP criteria should be routed to the appropriate function per local procedures.

    3. When verifying the RSED and the received date is not timely, check the postmark. If the amended return is postmarked on or before the RSED, consider it timely for a refund. See Paragraph 8 below to determine timeliness.

    4. When verifying the ASED, use today’s date.

    5. Research the IRS Disaster Assistance Program per paragraph 2 below.

  2. When researching the IRS Disaster Assistance Program, check the current year and one year prior to determine if the taxpayer lived in a qualified disaster area. If research shows the taxpayer lives or lived in a disaster area, review the disaster declaration for the following statement, and then follow the table below:

    • Affected taxpayers that need to perform time-sensitive actions described in Treasury Regulation § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 that fall on or after (the specified date), and before (the specified date), are granted additional time to act through (the specified date).

    If ... And ... Then ...
    The taxpayer does not live, or did not live in a qualified disaster area   Continue processing per normal procedures.
    The taxpayer lives or lived in a qualified disaster area
    1. The statement above is not in the disaster declaration

    2. The statement above is present and the specified dates do not extend the taxpayer’s filing timeframe

    3. The statement above is present and the specified dates extend the taxpayer’s filing timeframe
      Note: See example below the table

    1. Continue processing per normal procedures.

    2. Continue processing per normal procedures.

    3. Continue processing the claim per normal.

    Example:

    If a taxpayer files a TY 2017 return with a Received Date of 06/13/2021, a Postmark date of 06/10/2021, a RSED of 04/15/2021, and research shows the taxpayer lives in a qualified disaster area as noted in disaster declaration excerpt below, then use Override Code S, 06/13/2021 as the Received Date, and 06/10/2021 as the Amended Claims Date and Refund Statute Control Date.

    Note:

    Affected taxpayers that need to perform time-sensitive actions described in Treasury Regulation § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 that fall on or after February 11, 2021, and before June 15, 2021, are granted additional time to act through June 15, 2021.

  3. For statute imminent cases (the ASED is 90 days or less), hand carry to Statute per local procedures.

    Note:

    Elevate any statute imminent routing issue(s) to the SP HQ Analyst.

  4. If the assigned tax account is on retention, use CC IMFOLB to restore the module. Before adjusting or corresponding on the account, you must suspend the case, using RETREG as the activity, for 21 days, following local procedures, to allow the TC 370 to post. If the TC 370 has not posted when the suspense period expires, then route to CIS/AM.

  5. Follow the procedures below to determine if the case should be routed.

    If ... And ... Then ...
    1. The case is within 90 days of the ASED or the ASED is expired. Any of the following are present:
    - A signed consent or request to extend the statute of limitations.
    - Filing status changes to MFJ.
    - Cases requiring a manual refund.
    - A statement of Financial disability.
    Route to CIS/AM
    2. The received date is within 60 days of the ASED or the ASED is expired The RSED is open and there is a total tax decrease or a refundable credit increase of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and specific Cat A criteria does not exist for the issue(s)

    Note:

    If specific CAT-A criteria exist, see IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. If CAT-A criteria is not met, continue to the next box.

    Route to CAT-A
    3. The RSED is expired and the module is in debit balance   Route to CIS/AM
    4. The RSED is expired on a full paid module and your amended return is not a math error correction There are payments, credits, or offsets posted within two years of your case’s received date

    Note:

    For information on offsets, see IRM 21.4.6, Refund Offset Research, IRM 21.4.6.4.1, Tax Offset, and IRM 21.4.6.4.2, Treasury Offset Program (TOP) Offset.

    Route to CIS/AM
    5. The RSED is expired and there was a math error on the original return The change on the Form 1040-X is not a math error correction and/or also claims additional changes Route to CIS/AM

  6. Follow the procedures below to determine if the case requires correspondence.

    If ... And ... Then ...
    1. Total tax decrease and/or refundable credit increase resulting in a refund that was received (or postmarked) before the RSED The claim is incomplete and additional information is required to process the case
    1. Suspend the case for 45 days and request the missing information.

    2. Correspond with the taxpayer using a Letter 916C. Use paragraphs B, J, S, T, 2, 5.
      • Paragraph S fill-in: Please complete Form XX to support the changes you have made.Or use the fill-in provided in the specific instructions
      • Paragraph T fill-in: Please send us the requested information within 30 days from the date of this letter. If we do not hear from you, we will not be able to allow your claim if the statute of limitations has expired. Generally, the refund statute expires 3 years from the original due date of the return or 2 years from the date the tax was paid, whichever is later.
      Exception: If the signature is missing on the claim, use Letter 324C with paragraphs: A, P, 3, 6, and c.
      • Paragraph 3 fill-in: Please send us the information requested within 30 days from the date of this letter. If we do not hear from you within 30 days, we will not be able to allow your claim if the statute of limitations has expired. Generally, the refund statute expires 3 years from the original due date of the return or 2 years from the date the tax was paid, whichever is later.

    3. The response was received before the RSED or after the RSED but within 45 days of the IRS request (date the letter was input) then allow the claim. If the taxpayer did not provide a complete response, adjust the account for provided items and send Letter 106C per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).
      Exception: If the adjustment will result in a balance due, then route to Statute.

    4. If there is no reply or the request for additional information is not received by the requested response date and the RSED has expired, disallow the claim. Send Letter 105C per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP). Use paragraphs A, 1, c, d, g, r, and v.
      Note: If there is no reply and the RSED is not expired, follow the "No Consideration" procedures as outlined in IRM 3.11.6.9.6, Correspondence for “No Consideration” of a Claim (Letter 916C).

    2. The RSED is expired on a full paid module and the return was not timely filed
    1. There are no payments, credits, or offsets within the last two years on the module and no other route-out criteria exist

    2. Exonerated Prisoner, Incarceration Exclusion PATH Act, or similar is notated

    1. Disallow the claim. Send Letter 105C per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C and Letter 106C. Use paragraphs A, 1, c, d, g, r, and v.

    2. Route to CIS/AM with EXPR as the working Trail.

  7. If the return is a duplicate, see IRM 3.11.6.5.1, Duplicate Returns and Identical Open CIS Cases.

  8. The following procedures should be used to determine how to process your case.

    If ... And ... Then ...
    1. Making an adjustment to the account with a TC 290 .00 and adjusting Credit Reference Numbers that will not result in a credit or tax change

    Example:

    Changing SE tax from the primary to secondary taxpayer. No tax change and no credit change.

    Without regard to the ASED or RSED Process using Blocking Series 05. If the RSED is expired, use the received date as the "RFSCDT" and enter an "S" override.

    Caution:

    Do not use Priority Code 9.

    2. The RSED is expired and there was a math error on the timely filed original return The only change is a correction of the math error(s) Process the Form 1040-X. See IRM 3.11.6.13.1.1, Math Error Response.

    Note:

    Input the received date of the original return in the "RFSCDT" field.

    Exception:

    If the original return was filed after the RSED, route to CIS/AM.

    3. The RSED is expired and there was a math error on a timely filed amended return The only change is a correction of the math error(s) Process the Form 1040-X. See IRM 3.11.6.13.1.1, Math Error Response.

    Note:

    Input the received date of the first amended return in the "RFSCDT" field.

    4. The ASED is greater than 90 days and the RSED is expired
    1. The return is one of the following:

      • A tax increase with a credit decrease.

      • A tax increase without a credit decrease.

      • A credit decrease without a tax increase.

    2. The return is one of the following:

      • A tax increase with a credit increase.

      • A credit increase without a tax increase.

      • A tax decrease with a credit decrease.

    1. Process as normal.

    2. Route to CIS/AM.

    5. The amended return has a total tax decrease and/or refundable credit increase that results in a refund on a timely filed return No route criteria exist Process the Form 1040-X using instructions in paragraphs 9 and 10 below.

  9. OVERRIDE CODE - An Override Code is required when the IRS Received Date is over one year old and on cases when the statute has expired.

    1. R - Allows IRS Received Date to be older than a year in the past.

    2. S - Allows current date and the Refund Statute Control Date (RFSCD) to be later than the Refund Statue Expiration Date (RSED).

    Reminder:

    If the taxpayer lived in a qualified disaster area, the due date considered a return timely filed may be different.

  10. Follow the procedures and examples in the chart below for determining the received date and amended claims date.

    Note:

    Verify postmark date when determining timeliness.

    Reminder:

    Always verify the RSED and ASED dates on CC TXMOD.

    If ... And ... Then ...
    1. Received date is after the RSED

    Example:

    The received date is 4-20- 20XX.

    Postmark shows the claim is timely filed

    Example:

    The RSED is 4-15-20XX, and the postmark date is 4-15-20XX or prior.

    Example:

    The RSED is 10-15-20XX, and the postmark date is 10-13-20XX.

    Use the received date as normal. Use the postmark date as the amended claims date and as the RFSCDT.

    Example:

    Input 4-15-20XX as the RFSCDT and the amended claims date.

    Example:

    Input 10-13-20XX as the amended claims date and RFSCDT.

    2. The received date is prior to the RSED

    Example:

    The received date is 3-30-20XX.

    You are processing the claim after the RSED

    Example:

    Postmark date is 3-28-20XX and the return is received in the 1040-X unit to be processed 6-05-20XX.

    Use the received date as normal and as the amended claims date and RFSCDT.

    Example:

    Input 3-30-20XX as the amended claims date and the RFSCDT.

    3. Received date is prior to the RSED

    Example:

    The received date is 6-01-20XX and the RSED/ASED is 10-15-20XX.

    You are processing the claim prior to the RSED

    Example:

    The claim is processed 6-20-20XX.

    Process the return following standard 1040-X procedures.
    4. Claim is timely received

    Example:

    The received date is 4-15- 20XX or prior.

    The claim is incomplete and correspondence is required per paragraph (4), box 1. Response is received after the RSED, but within the time frames in paragraph (4), box 1.

    Example:

    Correspondence was sent and the reply was received 6-1-20XX.

    Use the original received date as the received date and RFSCDT. Use the response date as the amended claims date.
    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Example:

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

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

    Example:

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

Taxpayer Advocate Service (TAS) Cases

  1. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For more information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

  2. Review all attachments for taxpayer notations and correspondence to determine whether the taxpayer meets TAS case criteria per IRM 13.1.7.3, TAS Case Criteria, or requests TAS assistance. TAS criteria is defined as any of the following:

    • Taxpayer is experiencing economic harm or is about to suffer economic harm.

    • The taxpayer is facing an immediate threat of adverse action.

    • The taxpayer will incur significant costs if relief is not granted (including fees for professional representation).

    • The taxpayer will suffer irreparable injury to, or long-term adverse impact if relief is not granted.

    • The taxpayer has experienced a delay of more than 30 calendar days to resolve a tax account problem.

    • The taxpayer has not received a response or resolution to their problem or inquiry by the date promised.

    • A system(s) or procedure(s) has either failed to operate as intended or failed to resolve the taxpayer’s problem or dispute within the IRS.

  3. Do not send original returns or amended returns to TAS.

  4. Follow the table below when a case is open to TAS. A case open to TAS can be identified by a control category of "ATAO" or the assigned to employee IDRS number begins with "63" .

    If processing a ... And ... Then ...
    1. MEFP case
    1. The case does not meet SP criteria.

    2. The case meets SP criteria.

    1. Route the case per IRM 3.11.6.6, Sorting, Routing, and Priority Processing.

    2. Process the case following normal procedures.

    2. MEFS case
    1. The case does not meet SP criteria.

    2. The case meets SP criteria.

    1. Route the case per IRM 3.11.6.6, Sorting, Routing, and Priority Processing.

    2. Process the case following normal procedures.

    3. Paper case
    1. The case does not meet SP criteria.

    2. The case meets SP criteria but is incomplete (i.e., missing signature, forms, and schedules, etc.)

    3. The case meets SP criteria.

    1. Expedite the case to CIS/AM per local procedures.

    2. Suspend the case for 5 working days using the activity "SP1040XTAS." Contact the embedded SP 1040-X TAS Liaison and state what is missing. The liaison will contact the case advocate to secure the missing information.

    3. Take the following actions:

      1. The tax examiner will:

        • Complete the CIS Association Header Sheet. In the "Case ID" box write "MEFS"

        • Close the open control for the paper case using CC ACTON with the activity "SNT2SCAN" and category code MISC.

        • Attach the CIS Association Header Sheet to the return and place in the designated basket to send the case through the exception scanning process.

      2. The clerical staff or other designated personnel will:

        • Prepare the case for the exception scan process.

        • Scan the case through the exception process.

        • Validate the exception scan.

        • Make a copy of the CIS Association Header Sheet to return to the tax examiner after the case has completed validation.

      3. After the tax examiner receives the copy of the CIS Association Header Sheet, the case will be processed per normal MEFS procedures.

    Reminder:

    If inputting an adjustment, place the "ATAO" case in "B" status and then return it to its original status once you have completed the adjustment.

  5. When working paper cases, follow local procedures when the table above requires the creation of a CIS case or a case be scanned.

  6. When processing an e-filed case or scanned case and the taxpayer requests to be referred to TAS or the taxpayer meets the above criteria:

    If ... And ... Then ...
    1. A taxpayer sends a Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order)
    1. No other documentation is attached

    2. An original return or Form 1040-X is attached

    1. Take the following steps:

      1. Print the Form 911 to PDF.

      2. E-mail the Form 911 PDF as an attachment to TAS based on your site.

        • ≡ ≡ ≡

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡

    2. Take the following steps:

      1. Print the Form 911 to PDF.

      2. E-mail the Form 911 PDF as an attachment to TAS based on your site:

        • ≡ ≡ ≡

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡ ≡ ≡

      3. Continue processing the case as normal.

    2. A taxpayer sends correspondence meeting TAS criteria or requests TAS assistance
    1. No other documentation is attached

    2. An original return or Form 1040-X is attached

    1. Take the following steps:

      1. Print the correspondence to PDF.

      2. E-mail the correspondence PDF as an attachment to TAS based on your site.

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡

    2. Perform the following steps:

      1. Print the correspondence to PDF.

      2. E-mail the correspondence PDF as an attachment to TAS based on your site.

        • ≡ ≡ ≡ ≡

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡ ≡

      3. Continue processing the return as normal.

    3. A taxpayer provides a tax return with an explanation on the Form 1040-X that he or she is seeking TAS assistance
    OR
    The request meets TAS criteria
    Form 911 or correspondence is not attached
    1. Perform the following steps:

      1. Complete sections I, II, and III of Form 911. The Form 911 must state the taxpayer’s problem and the relief requested.

      2. Print Form 911 to PDF.

      3. E-mail the Form 911 PDF as an attachment to TAS based on your site.

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡ ≡ ≡ ≡

        • ≡ ≡ ≡


      Note: If a Form 2848, Power of Attorney and Declaration of Representative, is attached to the Form 1040-X, notate in Section II of Form 911"2848 to CAF."

    2. Continue processing the return as normal.

  7. When processing a paper filed case and the taxpayer requests to be referred to TAS or the taxpayer meets the above criteria:

    If ... And ... Then ...
    1. A taxpayer sends a Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order)
    1. No other documentation is attached

    2. An original return or Form 1040-X is attached

    1. Send the Form 911 to TAS.

    2. Perform the following steps:

      1. Detach the Form 911 and send to TAS.

      2. Continue processing the return as normal.

    2. A taxpayer sends correspondence meeting TAS criteria or requests TAS assistance
    1. No other documentation is attached

    2. An original return or Form 1040-X is attached

    1. Send the correspondence to TAS.

    2. Perform the following steps:

      1. Detach the correspondence and send to TAS.

      2. Continue processing the return as normal.

    3. A taxpayer provides a tax return with an explanation on the Form 1040-X that he or she is seeking TAS assistance
    OR
    The request meets TAS criteria
    Form 911 or correspondence is not attached
    1. Complete sections I, II, and III of Form 911 and send to TAS. The Form 911 must state the taxpayer’s problem and the relief requested.
      Note: If a Form 2848, Power of Attorney and Declaration of Representative, is attached to the Form 1040-X, notate in Section II of Form 911"2848 to CAF."

    2. Continue processing the return as normal.

Frivolous Claims

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by both individuals and businesses are included, but are not limited to, those listed in IRM 3.11.6.6.7.1, List of Frivolous Claims.

  2. F- freezes are set by a posted TC 971 AC 089 and indicates that a frivolous return has been received and the entire account is frozen. Adjustments should not be made to accounts showing an F- freeze.

  3. Route, per local procedures, any "suspicious" return or claim with a F- freeze to the designated box in Submission Processing for the Frivolous Return Program (FRP) Coordinator to review. When sending a case to the FRP Coordinator for review, input a TC 971 with AC 013 and enter "SENT TO FRP" in the remarks area.

  4. The FRP Coordinator will review any return which the taxpayer:

    1. Argues for any reason against filing a tax return or the paying of taxes.

    2. Uses one of the frivolous arguments or statements in IRM 3.11.6.6.7.1, List of Frivolous Claims.

    3. Marks out or alters in any manner, the penalty or perjury statement (i.e., the jurat) in the signature area.

  5. If a non-frivolous claim is received with an open control base to an employee in the FRP Unit (IDRS Numbers begin with 14867, 14868, or 14869) route to FRP at the following address:

    IRS Frivolous Return Program
    1973 N Rulon White Blvd
    Mail Stop 4450
    Ogden, UT 84404

    Input a TC 971 with AC 013 and enter "Sent to FRP" in the remarks area.

List of Frivolous Claims
  1. The following is a list of recognized frivolous arguments made by both individuals and businesses. This list is not all-inclusive. This information can be found in Notice 2010-33. If you identify any of the frivolous issues, refer to the instructions in IRM 3.11.6.6.7, Frivolous Claims, for routing to the Frivolous Returns Program (FRP).

    • Alleged Churches/First Amendment - Taxpayer receives income from non-religious sources, may claim a vow of poverty, and may submit a tax return with all or substantially all of the gross income claimed as a contribution on Schedule A.

    • Altered Form - Taxpayer submits a tax return altering any or all line-items with the intent of showing non-compliance with the tax laws.

    • Altered Jurat/Uniform Commercial Code (UCC) 1-207 - Taxpayer submits a tax return that contains income and deductions and alters or lines through all or part of the jurat. The return may include a reference to UCC 1-207 or a statement that the return was not signed under penalties of perjury. The alteration may be located elsewhere on the return and an arrow to the jurat.

    • Amended Returns/Form 843 Claim - Taxpayer files an amended return or Form 843 to obtain a refund of all taxes paid in prior years based on a tax avoidance argument.

    • American Indian Employment Credit - Taxpayers submit returns and claims reducing taxable income by substantial amounts and citing an American Indian Employment Credit. Although there is an Indian Employment Credit available for business that employ American Indians or their spouses, there is no provision for its use by the actual employee.

    • Argument against Government Action/Inaction - Taxpayer claims a deduction or credit on the tax return based on dissatisfaction with government actions or spending.

    • Bosnian Refugees - Taxpayer filing claim eliminating tax based on their status as a Bosnian refugee.

    • Certain instances of misuse or excessive use of the section 6421 fuels credit.

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

    • Challenges to Authority/Title 26 or "Law" in Other Documents - Taxpayer may argue that Title 26 of the United States Code (USC) is not law because it was never enacted as named. They may also argue that other laws or documents prevent the IRS from assessing and collecting tax, such as the Bible, Bill of Rights, Declaration of Independence, etc.

    • Disclaimer - Taxpayer submits a disclaimer. The disclaimer states they "disclaim the liability of the tax due" , making the liability on the tax return zero.

    • Eisner vs. Macomber - Taxpayer reports wages but deducts all or a portion of the income as non-taxable compensation and references Eisner vs. Macomber.

    • Employment Tax/CFR 1.861 - Employers stop withholding and paying payroll taxes on their employees' wages.

    • Erroneous claims that taxes are only owed by persons with a fiduciary relationship to the United States or the IRS.

    • Federal Reserve Notes Are Not Legal Tender - Taxpayer argues that Federal Reserve notes are not money so they are not income when received.

    • Fifth Amendment - Taxpayer makes an improper blanket assertion of the Fifth Amendment right against self-incrimination as a basis for not providing financial information.

    • Form 1099 MISC -The Frivolous Form 1099 is used to claim large refunds based on bogus income and withholding that is normally reported as Other Income. Typically, the Form 1099 MISC payer (issuer) is a large bank, loan, and/or mortgage company and the income and withholding may be substantiated on IRPTR. The fraudulent withholding is generally 33 percent of the reported income but may be up to 100 percent. The taxpayer may include other issues on these fraudulent claims.

    • Form 2555 Deduction - Taxpayer submits a return showing income and deducts the same amount (or a large portion of the amount) by adding "Form 2555" to Schedule 1. Form 2555, Foreign Earned Income, is usually attached showing the taxpayer’s "foreign address" is in the United States. The taxpayer also shows his income on Form 2555 as "foreign earned income" even though the employer's address is also in the United States.

    • Fuel Tax Credit Returns - Taxpayers submit returns that reflect fuel tax claimed for occupations that would not justify the use of fuel used for non-taxable purposes, such as hairdressers, housekeepers, nurse, etc. Realistically, the taxpayers would not have money sufficient to live on, if indeed they had purchased the amount of fuel on which they claimed the credits. Therefore, the claims remain so far beyond a reasonable range as to doubt good faith on the return in general.

    • In Lieu of - Taxpayer submits a document containing personal identifying information and a summary of income received "in lieu of" an official income tax form.

    • IRC 1001 -Taxpayer claims on Schedule A under "Other Miscellaneous Deductions" no gain realized for even exchange of property-Labor (property)-Employer's (property) with NO GAIN REALIZED Butcher's Union Co. v. Crescent City Co., 111 US 746 S.CT.Rptr., pp.660-661.

    • IRC 83 - Claims, generally in the form of Form 843, Claim for Refund and Request For Abatement, request abatements of previously assessed taxes and/or penalties using IRC Section 83 as justification. The claims further describe that the abatement is based on an allegation that the taxpayer previously failed to compute, under IRC 83, the amount of property transferred in connection with the performance of services.

    • IRC 1341 - Taxpayer claims compensation for personal labor is not taxed by Title 26, IRC Section 1341.

    • IRC 3121 - Taxpayer contends that IRC 3121 exempts the Federal Insurance Contribution Act (FICA) portion of earnings from the definition of "wages" and therefore from "gross income" for federal income tax purposes. The taxpayer attempts to reduce taxable income by their portion of withheld Social Security tax.

    • IRS is a Private Organization/Collects Tribute, Not Taxes - Taxpayer argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc. and since the IRS deposits its revenues in the Federal Reserve Bank, it is a collection agency for the Federal Reserve Bank. Additionally, the taxpayer argues the Department of Treasury is part of the United Nations and secretly leading the tax-paying public into a "New World Order" .

    • Less-Native American Indian Treaty or Native American Indian Treaty - The filings usually include Form 1099-MISC or other income documents that include withholding, (generally greater than 18 percent of the income) and results in a refund.

    • Mariner's Tax Deduction (or the like) related to invalid deductions for meals.

    • Misinterpretation of the 9th Amendment to the U.S. Constitution Taxpayer's objection to military spending.

    • Non-negotiable Charge Back - Taxpayer attempts to sell their birthright back to the government for a large dollar amount and requests that a "Treasury Direct Account" be set up to hold the money.

    • Not a Citizen/Free Citizen/Not a Resident of Federal Zone - Taxpayer argues they are not a citizen of the United States and received no income or benefits from sources within the United State.

    • Not a Person or Individual - Taxpayer argues that he or she is not a "Person" or "Individual" within the meaning of the IRC; therefore, he or she is not subject to income taxes.

    • Obscene, Vulgar, Harassing - Taxpayer submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often this argument is expressed in an extremely demeaning manner with obscene, vulgar, or crude language and characters.

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

      Example:

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

      ≡ ≡

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

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

    • Outlandish and/or Unsubstantiated Credits - Taxpayers submit returns and claims that generally reflect income, but also claim the exact amount of income entered as withholding. Oftentimes the filing contains Forms 1099-OID (Original Issue Discount). In some instances, the 1099-OID is shown generated to a payee unrelated to the taxpayer (such as the Department of the Treasury or various judges or attorneys), yet the withholding is claimed on the taxpayer’s return. The refunds claimed, resulting from these filings, are large.

    • Prisoners and substitute W-2-- Prisoners supplying a substitute W-2 (Form 4852) with the explanation portion of the Form 4852 stating the income is based on computation of minimum wage for hours worked within the prison. the Form 4852 lists a withholding amount that allegedly represents the amount an employer would withhold from an employee’s wages if working for minimum wage. The inmate then claims a refund based on the data for income and withholding they say that the prison should have reported. Prisons never withhold tax from pay and do not issue Form W-2.

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

    • Services Not Taxable/Thirteenth Amendment/Form of Servitude - Taxpayer argues that income results from the sale of goods; therefore, the value of services is not taxable. This includes indentured servitude arguments and barter offsets. The taxpayer may also argue that the Thirteenth Amendment outlawed slavery. They may claim to be a "natural enfranchised individual and freeman" who is a resident of a state and therefore a nonresident alien for the purpose of the IRC.

    • Sixteenth Amendment - Taxpayer argues the Sixteenth Amendment was not properly ratified; therefore, the federal government does not have the legal authority to collect an income tax without apportionment.

    • Taxes are Voluntary/Law Does Not Require - Taxpayer submits a tax return, amended tax return, or correspondence that argues income taxes are voluntary.

    • Thumbprint in lieu of a signature - Thumbprint is present in the signature area on a return.

    • Trusts - Taxpayer attempts to flow income through the trust to avoid personal tax liability. Promoters use "business trusts" as a means of evading income tax.

    • U.S. vs. Long - Taxpayer submits a tax return with zero money amounts and refers to U.S. vs. Long.

    • Unsigned Tax Returns - Taxpayer submits a completed unsigned tax return. A statement why the return is not signed is attached or added to the return indicating disagreement with the tax system.

    • Untaxed - Taxpayer argues that they should be "untaxed" and attempts to drop out of the Social Security system. They withdraw or rescind their Social Security Number (SSN), claiming they are a sovereign citizen.

    • Valuation - Taxpayer argues that income is not taxable because of the declining fair market value of the dollar. They state the dollar is not backed by gold/silver, or the value of services is offset by the value of the labor (barter income).

    • Wages Deducted in Cost of Goods Sold - Taxpayer submits a return with a Schedule C claiming a deduction equal, or nearly equal, to the amount reported as wage income. The deduction is usually included in the cost of goods sold but could appear under a different deduction category.

    • Wages/Receipts Not Income - Taxpayer argues that salaries and wages are not "income" within the meaning of the Sixteenth Amendment. Taxpayer may also argue that labor worth a certain amount is exchanged for money worth the same amount, so there is no income to be taxed.

    • Zero Returns - Taxpayer submits a tax return with zero money amounts and attaches a statement claiming there is no section of the IRC that establishes an income tax liability. The statement may also contain arguments regarding the definition of income. Taxpayer may cite the Latin phrase "Nunc Pro Tunc" ("Then and Now" ) on the return, Form 1096 and/or 1099. Taxpayer may list all zeros and claim a refund of all Federal Withholding, or claim an amount for wages, AGI and Standard Deduction, enter no tax and claim a refund of all Federal Withholding, or taxpayer claims wages and AGI, but carries AGI to refund line.

    • Zero Wages on a Substitute W-2 - Filer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. Entries are usually for Federal income tax withheld, but can be Social Security tax withheld and/or Medicare tax withheld. An explanation on the Form 1040-X or Form 4852 may cite "statutory language behind IRC 3401 and IRC 3121" , or include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

Criminal Investigation (CI) Scheme Development Center (SDC)

  1. The Criminal Investigation (CI) Scheme Development Center (SDC) identifies and assembles information on individuals and entities involved in civil and criminal noncompliance with the Internal Revenue Code (IRC) and other related statutes.

  2. Send claims meeting SDC criteria to your local SDC:

    If processing a... Then ...
    MEFP or MEFS case
    • Austin: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Kansas City: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Ogden: ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Paper case
    • Austin: 9002 AUSC

    • Kansas City: 9000 KCSC

    • Ogden: 9001 OSC

  3. Use the following table to determine if CI SDC will want to see the following amended returns:

    If ... Then ...
    1. IDRS shows a "-Z or Z-" freeze. Route to the SDC. Input a CC ACTON history item To CISDC. If the case is returned with a notation to process, route to CIS/AM.

    Exception:

    If the tax module shows ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    If the return meets both Frivolous and SDC criteria, route to Frivolous.

    2. CC TXMOD has an unreversed pending or posted TC 914 or TC 916 Route to the SDC. Input a CC ACTON history item "To CISDC."
    3. CC ENMOD has an unreversed pending or posted TC 918 Route to the SDC. Input a CC ACTON history item "To CISDC."

  4. Claims returned from the CI SDC may have a stamp indicating they have been reviewed.

    If ... And ... Then ...
    1. CI/SDC returns the claim with instructions for the 1040-X team to work the case
    1. Other route out criteria is present

    2. The processing instructions conflict with IRM instructions

    3. The case will be processed
      Note: When a Z freeze is present the case will require manual input.

    1. Follow normal processing procedures. The case should be annotated with the route criteria and the CI/SDC processing instructions should be left attached.

    2. Route to CIS/AM. The case should be annotated with the issue that does not meet SP 1040-X criteria and the CI/SDC processing instructions should be left attached.

    3. Follow normal processing procedures and add "Per CISDC" in the remarks.

    2. CI/SDC returns the claim with instructions for the 1040-X team to send the case to Files   Use Form 9856 to route the claim to Files based on the DLN of the TC 29X which corresponds to the return. If a TC 29X is not present, then input a TC 290 .00. See IRM 3.11.249.3.2.1, Document Locator Number (DLN) for detailed information regarding DLNs.

Return Integrity and Verification Operation (RIVO) Guidance

  1. The Return Integrity Verification Operation (RIVO) identifies and intercepts refunds from returns with questionable wage and/or withholding claims, which may include identity theft related issues.

  2. Use the following chart to determine if RIVO will want to see the following amended returns:

    Note:

    RIVO should not receive any CP notices or returns that have already been stamped by RIVO.

    If ... And ... Then ...
    1. RIVO is holding the refund with a TC 971 AC 134

    Note:

    Cases with a TC 971 AC 134 are pre-refund wage verification, not ID theft.

    1. Wages and withholding in Column C of the Form 1040-Xcan be verified per CC IRPTR≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Wages and withholding in Column C of the Form 1040-Xcannot be verified per CC IRPTR
      OR
      If there is an ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the account has ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Process the Form 1040-X using normal procedures.

    2. Perform the following steps:

      • Adjust the account to the Form 1040-X figures following normal procedures

      • Use HC 4 to set the -K freeze

      • Open an IDRS control to:
        C#,AQC6X,A,AQC2
        1487877777,*

      • If processing a paper filed amended return, route to Files. If processing a e-filed amended return or CIS case to be worked by SP, send the case to Archive.
        Exception: If there is additional route-out criteria and RIVO takes priority, then route the claim by the second route-out criteria. See IRM 3.11.6.6, Sorting, Routing, and Priority Processing, for routing priority.

    2. There is an open case to RIVO Automated Questionable Credit (AQC) or QRPA
    OR
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. The Form 1040-X≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. The Form 1040-X is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Do not input an adjustment. Route the entire case to RIVO AQC program:
      RIVO AQC Program
      Stop 763 ATSC
      4800 Buford Hwy
      Atlanta, GA 39901

    2. Follow normal processing procedures.
      Note: For open controls, you will need to place the case in "B" status, input the adjustment, and then return the case to its original status.

    3. There are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on the module but the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    OR
    The ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from the module
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Route to your local RIVO. Input a CC Acton history item "TO RIVO."
    • Austin: 6574 AUSC

    • Kansas City: 6574 S-2 KCSC

    • Ogden: 9002 OSC

  3. When verifying documents on CC IRPTR, if an information document (IDOC) contains one of the following statements, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡:

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

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

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

  4. Claims returned from RIVO may have a stamp indicating they have been reviewed.

    If ... And ... Then ...
    1. RIVO does not
    • Provide any specific processing instructions.

    • Indicate "No RIVO Potential " or similar statement

    The claim ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Elevate to your Lead or Manager. The Lead or Manager will check with the local P&A Analyst for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    2. RIVO indicates the wages and/or withholding cannot be verified, 1040-X cannot be verified/disallow, or similar wording
    1. The wages and/or withholding is the only issue

    2. The claim has a mix of items that can and/or cannot be verified on IRPTR

    1. Input a TC 290 .00 and send a Letter 916C using fill-in: We cannot verify your claim for wages and/or withholding. Please verify your information.

    2. Perform the following:

      • Input the processable changes and allow items that can be verified through IRPTR.

      • Disallow items that cannot be verified on IRPTR. Send a Letter 106C disallowing the claim and input the adjustment per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP), using the fill-in: We cannot verify your claim for (fill in the blank). Please verify your information.

    3. RIVO indicates "RIVO is no longer interested in the return."   Follow normal processing procedures.
    4. RIVO returns the claim with instructions for the 1040-X team to work the case
    1. Other route out criteria is present

    2. The processing instructions conflict with IRM instructions

    3. The case will be processed
      Note: If a Z freeze is present on the case, IRM 3.11.6.6.8, Command Code DDBCK (Dependent Database Check).

    1. Follow normal processing procedures. The case should be annotated with the route criteria and the RIVO processing instructions should be left attached.

    2. Route to CIS/AM. The case should be annotated with the issue that does not meet SP 1040-X criteria and the RIVO processing instructions should be left attached.

    3. Follow normal processing procedures and add "Per RIVO" in the remarks.

    5. RIVO returns the claim with instructions for the 1040-X team to send the case to Files   Use Form 9856 to route the claim to Files based on the DLN of the TC 29X which corresponds to the return. If a TC 29X is not present, then input a TC 290 .00. See IRM 3.11.249.3.2.1, Document Locator Number (DLN) for detailed information regarding DLNs

Examination

  1. Review all claims and amended returns for Examination involvement. This may include:

    1. Returns with an open TC 420 or -L freeze. See IRM 3.11.6.6.10.2, Tax Liability.

    2. Returns meeting CAT-A criteria. See IRM 3.11.6.6.10.1, Income and Deductions.

    3. Returns per IRM 3.11.6.6.10.3, Office of Fraud Enforcement (OFE)- Suspicious Case Referral.

  2. Do not refer incomplete returns to CAT-A or Exam. A claim is considered complete if it has all information required. Correspond for signatures and all missing forms or schedules needed to support the changes being requested. Suspend all Letter 324C correspondence.

    Exception:

    If an incomplete response has been received on correspondence issued on a claim with CAT-A criteria or an Exam case, forward the claim to CAT-A or Exam, as appropriate.

  3. If the case has a -W freeze, route to CIS/AM.

  4. If the dependent(s) are changing from an ITIN(s) to SSN(s), prepare a Form 4442 before routing to CAT-A per local procedures.

    Note:

    Send the Form 4442 to the Austin ITIN Unit to have the ITIN revoked. Annotate both TINs on the Form 4442 referral and specify the ITIN that should be revoked, the individual’s name, date of birth (DOB), and a statement that no merge action is required. The reason for revoking the ITIN is "the dependent now has a valid SSN per IRM reference 3.11.6.12."

  5. The lead will forward cases needing technical assistance to the Examination Classification function.

Category A (CAT-A) Criteria
  1. To determine whether a return meets Category A (CAT-A) criteria, see Examination Criteria (CAT-A) - General and Examination Criteria (CAT-A) - Credits.

    Note:

    Unless otherwise specified, the dollar amounts cited refer to the amount of the tax decrease or credit increase whether or not the claim results in a refund or a decrease to the balance due.

  2. Do not apply CAT-A criteria to:

    • Combat Zone returns when the TP is actively serving in a Combat Zone. See IRM 3.11.6.6.21, Combat Zone.

    • CP notices

    • Credits that are being disallowed

    • Credits that are being reduced below the CAT-A tolerance due to master file or Math verification

  3. For CC DDBCK CAT-A criteria, see IRM 3.11.6.12.6, Command Code DDBCK (Dependent Database Check).

  4. When EIC is increasing and Schedule C meets CAT-A criteria input CC DDBCK prior to referring the case to CAT-A. If the CC DDBCK validation results screen shows the case as "Selected," refer the case to Exam using the "Selected" cover sheet. Otherwise refer the case as CAT-A for the Schedule C.

    Note:

    If working a MEFP case, follow IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide. If working a MEFS case, follow IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide.

  5. If the case is being forwarded to CAT-A, do not input a TC 971 AC 013.

  6. Once identified,

    If ... And ... Then ...
    Working a MEFP case
    1. The CAT-A issue would normally meet SP criteria if the tolerance was not met.

    2. The CAT-A issue would normally meet SP criteria if the tolerance was not met, and there is also an out of scope issue present on the case.

    3. The CAT-A issue would not normally meet SP criteria regardless of the tolerance.

    4. There is an open AUR case that meets CAT-A Criteria.

    1. Suspend to CAT-A.

    2. Reassign to Out of Scope. See IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide.

    3. Reassign to Out of Scope. See IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide.

    4. Route to AUR per IRM 3.11.6.6.11, Automated Underreporter (AUR).

    Working a MEFS case
    1. The CAT-A issue would normally meet SP criteria if the tolerance was not met.

    2. The CAT-A issue would normally meet SP criteria if the tolerance was not met, and there is also an out of scope issue present on the case.

    3. The CAT-A issue would not normally meet SP criteria regardless of the tolerance.

    4. There is an open AUR case that meets CAT-A Criteria.

    1. Suspend to CAT-A.

    2. Reassign to Out of Scope. See IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide.

    3. Reassign to Out of Scope. See IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide.

    4. Route to AUR per IRM 3.11.6.6.11, Automated Underreporter (AUR).

    Working a paper case
    1. There is an open AUR case that meets CAT-A Criteria.

    2. All other cases.

    1. Route to AUR per IRM 3.11.6.6.11, Automated Underreporter (AUR).

    2. These cases will be placed in a special sort identified as CAT-A and the issue will be identified by checking a box as to its category on a summary sheet. These will be routed, per local procedure, to CIS/AM for disposition to Exam.

SP MeF and SP CIS Cases Returned From CAT-A
  1. MeF and Submission Processing CIS Cases referred to the Exam CAT-A classifiers will be returned with processing instructions as outlined in the following table:

    If exam indicates ... Then ...
    "Selected" or provides instructions to route the claim The Case is selected for audit – SP will:
    1. Input the necessary audit trail with a TC 971 and Action Code (AC) 013.

    2. Route the case if necessary.

    3. Close the CIS case

    "Rejected" SP will resolve the reason for rejection and resubmit the claim as Category A.

    Note:

    If additional information is needed from the taxpayer, SP will reject the claim and request the information.

    Note:

    If the Examination Classifier notifies SP to "No Consider" a claim for additional information or missing supporting documentation, follow IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP)

    "Accepted" Classifier determined no examination will be initiated at this time, SP will input the necessary actions to adjust the account and release any overpayment.

    Reminder:

    If other route criteria is present, route the case per normal procedures.

    "Disallowed" The issue is not allowable – SP will input the disallowance adjustment and send the appropriate disallowance letter per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).

Exam/-L Freeze Claim Processing
  1. Accounts with a -L freeze indicate an account has been selected for a potential audit. Since not all cases with a -L freeze will be audited, processing procedures differ based on the Audit Information Management System (AIMS) status.

  2. If an -L freeze is present, use CC AMDISA to determine the AIMS status. The AIMS status will determine the current status of the potential audit.

    Note:

    If there is an open IDRS control base to CI-SDC, continue to follow processing procedures outlined in IRM 3.11.6.6.8, Criminal Investigation (CI) Scheme Development Center (SDC).

  3. For accounts with a -L freeze and the AIMS status is 08 or less:

    • If the claim meets CAT-A criteria, per IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria, route the case to CAT-A per local procedures.

    • If the claim does not meet CAT-A criteria, process the claim following normal processing procedures. If inputting an adjustment, use hold code 1 to ensure any credit balance does not refund. Do not forward the case to Exam.

  4. For accounts with a -L freeze and the AIMS status is greater than 08:

    • Route to Exam based on the Employee Group Code (EGC) identified on AIMS. See link to the EGC located on SERP under Who/Where Exam Employee Group Code.

    • Follow local procedures for routing. See IRM 3.11.6.6.10, Examination.

    Exception:

    If the AIMS status is 90 indicating a closed audit or there is a pending TC 300 - 361, refer the case to CIS/AM.

    Exception:

    Whether identified through an open control base or CC AMDISA, amended returns should not be routed to Appeals, IDRS number 66XXX, route to CIS/AM.

    • Input a TC 971 AC 013 and use the received date of the amended return for the transaction date

      Exception:

      On CC DDBCK "Selected" cases, IDRS will automatically input the TC 971 AC 013 when a TC 971 AC 010 is not present.

Office of Fraud Enforcement (OFE)- Suspicious Case Referral
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    Note:

    If the case meets Exam or CAT-A routing criteria, do not send to OFE. Route the case to Exam or CAT-A as appropriate.

    Exception:

    If the case meets Identity Theft criteria, route the case per IRM 3.11.6.6.4, Identity Theft.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, follow the table below:

    Note:

    Form 13549, Campus Fraud Lead Sheet, must be completed electronically.

    If processing a ... Then ...
    MEFP case
    1. The tax examiner will:

      1. Complete Form 13549, Sections I, II, Section III item 1, and Section IV. In Section IV, make the following notations:

        • The case is on Modernized e-File Return Request Display.

        • CIS case ID

        • Describe the suspicious elements on the case. Refer to page 4 of Form 13549

      2. Leave a Case Message stating "Form 13549 approval request."

      3. Suspend the case to your lead and send a secure e-mail with Form 13549 attached. Remember to indicate the CIS Case Id in the e-mail.

    2. The lead will:

      1. Verify Form 13549, Sections I, II, Section III item 1, and Section IV have been completed correctly. If incomplete, return to the TE for corrections. If complete, review the case.

      2. If you approve, the case needs to be forwarded. Reassign the case back to the TE with a case message stating "Form 13549 referral approved, close the CIS case."

      3. Complete Form 13549 Section III item 2 c and route to the appropriate fraud advisor based on your site. Your site’s advisor can be found using this link Campus Fraud Examination and Fraud Enforcement Advisor Contacts.

      4. If you do not approve, complete Form 13549 Section III Item 2 a, and Section V and e-mail the form back to the TE. Reassign the case back to the TE with a case message stating "Form 13549 referral denied, continue processing."

    3. When the lead returns the case, take the following action:

      1. If the referral is approved, leave a case note stating "Form 13549 referral" and close the case.

      2. If the referral is denied, continue process per normal procedures.

    MEFS case
    1. The tax examiner will:

      1. Complete Form 13549, Sections I, II, Section III item 1, and Section IV. In Section IV, make the following notations:

        • The case is on CIS.

        • CIS case ID

        • Describe the suspicious elements on the case. Refer to page 4 of Form 13549

      2. Leave a Case Message stating "Form 13549 approval request."

      3. Suspend the case to your lead and send a secure e-mail with Form 13549 attached. Remember to indicate the CIS Case Id in the e-mail.

    2. The lead will:

      1. Verify Form 13549, Sections I, II, Section III item 1, and Section IV have been completed correctly. If incomplete, return to the TE for corrections. If complete, review the case.

      2. If you approve, the case needs to be forwarded. Take the following actions:

        • Reassign the case back to the TE with a case message stating "Form 13549 referral approved, close the CIS case."

      3. Complete Form 13549 Section III item 2 c and route to the appropriate fraud advisor based on your site. Your site’s advisor can be found using this link Campus Fraud Examination and Fraud Enforcement Advisor Contacts.

      4. If you do not approve, take the following actions:

        • Complete Form 13549 Section III Item 2 a, and Section V. Then e-mail the form back to the TE.

        • Reassign the case back to the TE with a case message stating "Form 13549 referral denied, continue processing."

    3. When the lead returns the case, take the following action:

      1. If the referral is approved, leave a case note stating "Form 13549 referral" and close the case.

      2. If the referral is denied, continue process per normal procedures.

    Paper case
    1. The tax examiner will:

      1. Complete Form 13549, Sections I, II, Section III item 1, and Section IV. In Section IV, make the following notations:

        • Describe the suspicious elements on the case. Refer to page 4 of Form 13549

      2. Send a secure e-mail with Form 13549 attached to your team lead. State "Form 13549 approval request" in the e-mail. Then take the case to you lead.

    2. The lead will:

      1. Verify Form 13549, Sections I, II, Section III item 1, and Section IV have been completed correctly. If incomplete, return to the TE for corrections. If complete, review the case.

      2. If you approve, the case needs to be forwarded. Take the following actions:

        • Reply to the tax examiner’s e-mail stating "Form 13549 referral approved, close the CIS case."

      3. Take the following action to create a CIS case:

        • Complete the CIS Association Header Sheet. In the "Case ID" box write "MEFS"

        • Attach the CIS Association Header Sheet to the return and place in the designated basket to send the case through the exception scanning process.

      4. If you do not approve, take the following actions:

        • Complete Form 13549 Section III Item 2 a, and Section V and e-mail the form back to the TE. "Form 13549 referral denied, continue processing"

        • Return the case to the tax examiner.

    3. The clerical or designated personnel will

      1. Prepare the case for the exception scan process.

      2. Scan the case through the exception process.

      3. Validate the exception scan.

      4. Make a copy of the CIS Association Header Sheet to return to the tax examiner after the case has completed validation.

    4. The lead will, after receiving the copy of the CIS Association Header Sheet, take the following actions:

      1. On Form 13549:

        • Complete Section III item 2 c.

        • Update Section IV to notate the case is on CIS and the CIS Case ID.

      2. Route Form 13549 to the appropriate fraud advisor based on your site. Your site’s advisor can be found using this link Campus Fraud Examination and Fraud Enforcement Advisor Contacts.

    5. When the lead returns the case, take the following action:

      1. If the referral is approved, close the case to MISC.

      2. If the referral is denied, continue process per normal procedures.

  3. When working paper cases, follow local procedures when the table above requires the creation of a CIS case or a case be scanned.

Automated Underreporter (AUR)

  1. When working accounts with Automated Underreporter (AUR) involvement, research the account to determine where the account is in the AUR process. This can be determined by reviewing the AUR Process Code (PC) listed under the Transaction Code (TC) 922 on the account. The status of an AUR case will be determined by the last PC posted. Use the table below when determining if the (PC) meets routing requirements to AUR.

    Note:

    The process codes are the two digit numbers below the TC 922.

    If the last TC 922 process code is: Then
    1. No process code (PC) is shown or any PC not listed below Process as normal.
    2. 01, 03, 06 Process as normal.
    3. 09 Process as normal.
    4. 07, 19, or 49 Process as normal.
    5. 10 –14, 16, or 21 – 29 Process as normal.
    6. 15 or 18 If the PC immediately preceding PC 15 or PC 18 is other than 01, 03, or 06, route as an open case. If the preceding PC is not 01, 03, 06, process as normal.
    7. 17 Route as ID Theft. See IRM 3.11.6.6.4.
    8. 35, 36, 38, 62–64, 66 or 82, 83, 85 or 86 Route to Exam per IRM 3.11.6.6.10.
    9. 44, 72 or 84 Route to CIS/AM
    10. 46, 65 or 76 Route to CIS/AM
    11. 80 Route to CIS/AM
    12. 30, 34, 54, 55, 57–60, 75, 77–79, 81, 95, 96, 97–99 Route to AUR as an open case.
    13. 96 If there’s an open control to an AUR employee on IDRS, route to AUR as an open case. If there’s no open control, process as normal.
    14. 47, 48, 51, 52, 70, 71, 73, 74, 91, 92 or 93 Process as normal.
    15. 20, 39, 53, 67- 69, 87 - 90, or 94 Route as a reconsideration case.

  2. If an AUR case meets CAT-A criteria, do not route the case to CAT-A. The case must be routed to AUR for CAT-A determination.

  3. When routing a CIS case to AUR, determine the routing destination by using the first two digits of the TC 922 DLN and follow the table below.

    If processing a ... And the is and AUR ... Then ...
    MEFP case
    1. Open case

    2. Reconsideration case

    1. Follow the table in IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, and reroute per the AUR – Open Cases instructions.

    2. Follow the table in IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide, and reroute per the AUR – Reconsideration Cases instructions.

    MEFS case
    1. Open case

    2. Reconsideration case

    Caution:

    If the return is in the "Attached Files" and not in the "Document Images" section of the CIS case, follow the MEFP instructions above.

    1. Follow the table in . IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, and reroute per the AUR – Open Cases instructions.

    2. Follow the table in IRM 3.11.6.8.2, MEFS Reassignment and Reroute Guide, and reroute per the AUR – Reconsideration Cases instructions.

    Paper case
    1. Open case

    2. Reconsideration case

    1. Take the following action

      1. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      2. Route the return to the appropriate site found in the AUR Addresses (Open Cases) list on SERP following local procedures.

      3. Input a TC 971 AC 015

      4. Close the open control base to MISC.

    2. Take the following action

      1. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      2. Route the return to the appropriate site found in the AUR Reconsideration list on SERP following local procedures.

      3. Input a TC 971 AC 015

      4. Close the open control base to MISC.

International Returns

  1. Route all International returns to CIS/AM per local procedures. This includes duplicate returns.

    Note:

    A list of the International claims is included in IRM 3.11.6.6.12.1, International Returns. Common indicators of claims or forms to be routed are Foreign Addresses and Dual Status.

  2. Do not process Form 1040-X if all the Forms W-2 and Forms 1099 attached are from the Virgin Islands (regardless of the address). Pull these returns and transship to the following address:
    Virgin Islands Bureau of Internal Revenue
    6115 Estate Smith Bay, Ste. 225
    St. Thomas, U.S. Virgin Islands 00802

  3. Route to CIS/AM if "dual status" is indicated by the following conditions on an "amended" Form 1040:

    Form 1040 Revision is Filing Status Box is checked and Line is blank or zero
    2019 and later Other than Married filing separately (FS 3) In entity section for Your spouse itemizes on a separate return or you were dual-status alien 8

International Return Criteria
  1. The following is a list of International claims. Always leave the Form 1040-X attached. Refer to IRM 3.11.6.6.12, International Returns, for additional instructions.

    • Claims with foreign addresses on either the original or amended return (other than APO, DPO, and FPO addresses)

    • Form 1040 GUAM

    • Form 1040C, U.S. Departing Alien Income Tax Return

    • Form 1040-NR, U.S. Non-resident Alien Income Tax Return

    • Form 1040NR-EZ., U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

    • Form 1040PR U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bone Fide Residents of Puerto Rico)

    • Form 1040SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

    • Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding

    • Form SSA-1042S, Social Security Benefit Statement

    • Form RRB-1042S, Railroad Retirement Benefits

    • Form 2555, Foreign Earned Income

    • Form 2555EZ, Foreign Earned Income Exclusion (attached or noted on the return)

    • Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

    • Form 3520-A Annual Return of Foreign Trust With a U.S. Owner

    • Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

    • Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

    • Form 8288A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (IRC 1445)

    • Form 8288B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests

    • Form 8689, Allocation of Individual Income Tax to the Virgin Islands

    • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

    • Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax

    • Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446)

    • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

    • Form 8854, Initial and Annual Expatriation Information Statement

    • Form 8858, Information Return of U.S. Persons with Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs)

    • Form W-2AS, American Samoa Wage and Tax Statement

    • Form W-2GU, Guam Wage and Tax Statement

    • Form W-2VI, U.S. Virgin Islands Wage and Tax Statement

    • Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)

    • Claims involving IRC 911, IRC 931, or IRC 933

    • A notation on the return of "Dual Status"

    • Claims for an exemption or exclusion of the tax or income due to an international treaty or United States Tax Treaty

    • Claims involving Treaty Trader or Fulbright Grantee

    • Claims citing income from Johnston Island (26 CFR 1.931-.1)

    • Income paid in foreign currency, whether or not it was converted to U.S. currency

    • Primary, secondary, or both taxpayers are Non-Resident Aliens (NRA)

    • Any indication on the Form 1040-X the taxpayer originally filed an International return and is requesting a conversion to a Domestic return (i.e., originally filed Form 1040-NR and request conversion to Form 1040)

Open Cases / Open Control Base

  1. Generally, if an account has an open control base in CC TXMOD you will need to route the return to the assigned employee or a specified department. An open case can be in any of the following status: "A" Active; "B" Background; "S" Suspense; or "M" Monitor.

    Note:

    Do not route cases that are open in CC ENMOD.

  2. Cases in A or S status should be routed based on the ASSIGN-TO field of the open control.

  3. Do not route cases open in B or M status; continue to process if route out criteria is not present.

  4. The following exceptions apply to A, B, S, and M status:

    1. If the open control is in B status due to a P- freeze/TC 841 and the case is a net refund, then route to CIS/AM.

    2. Refer cases with a category code NLUN to the assigned IDRS number to process.

    3. Cases open to Accounts Management should be routed to your local CIS/AM. See (7) below to identify Accounts Management cases, more Accounts Management routing criteria might be identified through research found in (6) below.

    4. Cases open to a 1040X SP employee at your local campus should be referred to the manager or lead following local procedures. The lead or manager will determine how the cases are to be processed.

      Note:

      If working a CIS case, suspend the case to your manager or lead, and leave a case message indicating the other CIS Case ID.

    5. Cases open to RIVO AQC or QRPA: follow IRM 3.11.6.6.9, Return Integrity and Verification Operation (RIVO) Guidance.

    6. Follow local procedures for cases that are processable by placing the case in B status, inputting an adjustment, and then returning it to its original status.

    7. Route all ATAO cases per IRM 3.11.6.6.6, Taxpayer Advocate Service Cases (TAS).

    8. Cases with Activity 9465 should be placed in "B" status and processed.

    9. Cases controlled to Appeals IDRS number 66XXX, route to CIS/AM.

    10. AUR controlled cases should be routed following IRM 3.11.6.6.11, Automated Underreporter (AUR).

  5. If the open control is assigned to your current or previous IDRS number, close your open control before continuing to take any action on the return.

  6. Use CC MESSG or the IDRS Unit and USR Database, IUUD, web site to determine the appropriate campus location and stop number based on the IDRS number in the ASSIGN-TO field of the open control.

    Note:

    If unable to locate the stop number, see your lead.

  7. Accounts Management IDRS numbers are identified by the service center 2 digit code and 301-399 series. For instance, a Customer Service Representative (CSR) in Kansas City would be 093XX. Submission Processing 1040X Units use the SC code and the 200-244 series. This includes cases open to the AM suspense queue that do not contain 301-399 series:

    Campus Generic IDRS number
    Atlanta 0739900025
    Andover 0848900000
    Austin 0686100000
    Brookhaven 0138640000
    Cincinnati 0237500000
    Fresno 1042000000
    Kansas City 0938000000

    Reminder:

    This number is also used by SP 1040-X. See IRM 3.11.6.2.4, Controlling Cases on the Integrated Data Retrieval System (IDRS).

    Memphis 0339300000
    Ogden 0439800000
    Philadelphia 0544300093

  8. Follow local procedures when routing open cases.

Accounts Management Cases

  1. Cases are referred to Accounts Management (AM) based on the issue, the dollar tolerance, computer program capabilities (e.g., Blocking Series), and other various reasons. Refer to the specific IRM instruction subsection or the 1040-X Routing Guide IRM 3.11.6.7, 1040-X Routing Guide, or IRM 3.11.6.8, 1040-X MEFP and MEFS Reassignment and Reroute Guide . Also see IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

  2. A TC 150 must be posted before routing to CIS/AM, unless specific instructions are provided.

  3. When working paper filed amended returns, route all AM returns to Correspondence Imaging System (CIS) to be scanned. Follow any local procedure for separating the "Carryback/Carryforward," "Disaster Claims," etc. that require special handling.

    Reminder:

    A return must have a TC 150 posted before routing to CIS/AM, unless specific instructions are provided.

  4. When working e-filed amended returns or cases scanned into CIS for SP 1040-X to work, route all cases that do not meet SP criteria by selecting "Reassign" from the Reroute/Reassign drop-down list to reassign a CIS case, on both CIS and IDRS, to another CIS user.

    Reminder:

    A return must have a TC 150 posted before routing, unless specific instructions are provided.

  5. Do not input a TC 971 AC 010 when routing a case to CIS/AM.

  6. If a return has an open case to CIS/AM, route to your local CIS/AM.

  7. Beginning in August 2020, taxpayers will be able to e-file certain amended returns. 1040-X tax examiners will process these returns using AMS/CIS. During processing, CIS imaged returns might be generated by SP 1040-X tax examiners.

  8. Use the table below to determine how to process CIS imaged returns:

    If the CIS image originated from... Then ...
    An area other than SP 1040-X Route to CIS/AM.

    Exception:

    If a CIS imaged return is stamped/edited "Process as Original (PAO)" or similar verbiage and there is no TC 150 posted/pending, then route the document to Batching to be processed as an original. When feasible use Prior Year and Conversion Form 1040 Edit Sheet for Tax Year YYYY. If it is current year and the conversion form is not available, then "dummy" a current year Form 1040 for processing.

    SP 1040-X

    Note:

    The category code "MEFS" identifies these case types.

    Process following normal procedures.

Accounts Management Category Codes (CIS Cases only)
  1. Occasionally, a tax examiner (TE) may receive a case sent to Submission Processing in error. Some of these other Category Codes are:

    Note:

    This is not an all inclusive list.

    Caution:

    Cases returned to a TE from the MEFP and MEFS Accounts Management Rejected Queue are not to be considered cases received in error.

    • DAUD

    • DUPF

    • LSFM

    • PHZ1

    • TPRQ

    • TWRO

  2. When a tax examiner receives a case(s) mentioned above, the tax examiner will reassign the case to their lead. Leads will follow IRM 3.11.6.17.4, For Lead Tax Examiners - Other Category Code Cases.

Manual Refund
  1. Route cases to Accounts Management for a Manual Refund if:

    1. The taxpayer requests the refund issued in a name other than shown on master file.

    2. The taxpayer requests the refund issued to a temporary address.

    3. Refund is less than one dollar.

    4. Refund is $10 million or more.

Affordable Care Act and Possible Health Professional Claims

  1. The Affordable Care Act enacted April 2010 expanded tax benefits for health professionals working in some communities. Health care professionals who received student loan relief under various state programs and work in under-served communities may qualify for refunds on their 2009 federal income tax returns. If you receive the Form 1040-X, Amended U.S. Individual Income Tax Return, referencing the "Excluded student loan amount under 2010 Health Care Act" , "Affordable Care Act" , or "Student Loan Forgiveness" , route the claim to CIS/AM as they will be processing these claims.

Killed in Terrorist Action (KITA)

  1. Route all claims identified (on the return or on IDRS) as Killed in Terrorist Action (KITA), Killed in Action (KIA) or Victim of Terrorist Attack to CIS/AM, notate "KITA" in the working trail.

    Note:

    The literal "KITA" appears on CC ENMOD, CC IMFOLE, CC TXMOD and CC SUMRY as an indicator.

  2. Other terminology may include:

    • Anthrax

    • Oklahoma City

    • IRC 104(a)

    • 9 / 11

    • 911 Disability

    • 911 Rescue Workers

    • Publication 3920

    • September 11th Victim Compensation Fund

    • Tax Forgiveness Victims of Terrorist Act

    • World Trade Center (WTC)

    • Zadroga Act

  3. Place a CC ACTON history item, "2KITA" , on CC TXMOD; do not input a TC 971 AC 010.

Collection Function Cases

  1. All amended returns are to be screened for the following collection function criteria.

    • Compliance Services Collection Operations (CSCO)

    • Automated Collection Systems (ACS)

    • Offer In Compromise (OIC)

    • Field Collection Cases

    • Automated Substitute For Return (ASFR) and Non-Filer Return (NFR)

  2. When routing to one of the Collection functions listed in paragraph 1 use the following:

    If processing a ... And ... Then ...
    MEFP case
    1. Routing to CSCO

    2. Routing to ACS

    3. Routing to OIC

    4. Routing to Field Collections

    5. Routing to ASFR or NFR

    1. Route using e-fax to the number specified per IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO).

    2. Route using e-fax to the number specified per IRM 3.11.6.6.17.2, Automated Collection Systems (ACS).

    3. Route using e-fax to the number specified per IRM 3.11.6.6.17.3, Offer In Compromise (OIC).

    4. Route using e-fax to the number specified per IRM 3.11.6.6.17.4, Field Collection Cases.

    5. Route using e-fax to the number specified per IRM 3.11.6.6.17.5, Automated Substitute For Return (ASFR) and Non-Filer Return (NFR).

    MEFS case
    1. Routing to CSCO

    2. Routing to ACS

    3. Routing to OIC

    4. Routing to Field Collections

    5. Routing to ASFR or NFR

    1. Route using e-fax to the number specified per IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO).

    2. Route using e-fax to the number specified per IRM 3.11.6.6.17.2, Automated Collection Systems (ACS).

    3. Route using e-fax to the number specified per IRM 3.11.6.6.17.3, Offer In Compromise (OIC).

    4. Route using e-fax to the number specified per IRM 3.11.6.6.17.4, Field Collection Cases.

    5. Route using e-fax to the number specified per IRM 3.11.6.6.17.5, Automated Substitute For Return (ASFR) and Non-Filer Return (NFR).

    Paper case
    1. Routing to CSCO

    2. Routing to ACS

    3. Routing to OIC

    4. Routing to Field Collections

    5. Routing to ASFR or NFR

    Continue using normal paper processing routing procedures.

  3. If the entire return is being routed to one of the collection areas described in paragraph 1 above, input a TC 971 AC 012.

Compliance Services Collection Operations (CSCO)
  1. The following must be detached and routed to CSCO if attached to Form 1040-X. Continue processing the amended return.

    1. Form 9465, Installment Agreement Request.

      Exception:

      Do not detach and route Form 9465 when:
      • Received with MeF amended returns (MEFP cases), continue processing. The MeF system automatically sends the CSCO a copy of the Form 9465. When Form 9465 is attached to a MeF case (MEFP case) as a PDF, a copy of the form must be sent to the CSCO.
      • When sending a case to be processed as an original.

    2. A written request for an Installment Agreement located in the Form 1040-X, Explanation of Changes, or a separate attachment. Detach any Installment Agreement request and route to Collection as soon as it is identified.

    3. CP 503 or CP 504, Taxpayer Notification of Federal Tax Not Received, with a statement of, or similar to "can’t pay," "won’t pay," "want to pay," or "Form 9465 is attached."

      Note:

      If the case status is 22 or 24 in the "SC-STS" field on CC TXMOD or "STATUS" field on CC IMFOLT or the "STAT HIS" on CC IMFOLI

      , follow IRM 3.11.6.6.17.2, Automated Collection Systems (ACS). If the case status is 26, follow IRM 3.11.6.6.17.4, Field Collection Cases.

    4. CP 523, Past Due Payment Default Notice.

    5. Form 433-D, Installment agreement.

      Reminder:

      Verify that the taxpayer's name, TIN, and tax period are present on any detached item. Perfect as necessary.

  2. Take the following action if Form 15103, Form 1040 Return Delinquency, or CP 59, First Notice - Return Delinquency, Unfiled Tax Return(s), is present and is:

    • Attached to an amended return: disregard.

    • Attached to an original return: route to batching.

    • Received loose: route to CSCO.

  3. When routing a case to CSCO, take the following action:

    • Research the Business Operating Division (BOD) code using the CSCO addresses found on SERP to identify the correct Service Center.

      Note:

      The BOD code will be SBSE or W&I, and is located in the "BOD-CD" field of CC TXMODA.

    • Identify the appropriate Service Center based on the state in which the taxpayer resides.

      Example:

      If the BOD code is W&I, and the taxpayer resides in TX, the case would be routed to the Atlanta Service Center.

  4. Follow the table below when a T- freeze is present.

    If a ... And ... Then ...
    A T- freeze is present NoLetter 1058, CP 90 or other notation such as a request for a payment plan (Installment agreement), "can’t pay," "won’t pay," "will pay later," etc. is notated Workable
    A T- freeze is present A Letter 1058, CP 90 is attached and a notation requesting a payment plan (Installment agreement), or statement "can’t pay," "won’t pay," "will pay later," etc. IRM 3.11.6.6.17.2, Automated Collection Systems (ACS).

Automated Collection Systems (ACS)
  1. When T- freeze is present, review the case status in the SC-STS field on CC TXMOD or STATUS field on CC IMFOLT or the STAT HIS on CC IMFOLI and follow the instructions below.

    If ... And ... Then ...
    CC IMFOL/TXMOD shows the case is in Status 22 or 24 The IRS address is on the top of the letter
    • Detach the correspondence and route to the appropriate ACS support site based on the BOD-CD on CC TXMODA. The ACS support site can be found on SERP in the Who/Where tab under ACS Support and Status 22 TAS Liaisons.

    • Input TC 470, no closing code using CC REQ77.

    • Leave a working trail on the correspondence and the Form 1040-X. See IRM 3.11.6.2.5. Working Trail.

    • Continue processing Form 1040-X.

    CC IMFOL/TXMOD shows the case is in Status 22 or 24 The IRS address is not on the top of the Letter 1058 and correspondence is attached

    Exception:

    If no letter or correspondence is attached, continue processing Form 1040-X.

    • Research the appropriate ACS support site based on the BOD-CD on CC TXMODA. The ACS support site can be found on SERP in the Who/Where tab under ACS Support and Status 22 TAS Liaisons.

    • Detach the correspondence.

    • Input TC 470, no closing code, using CC REQ77.

    • Leave a working trail on the correspondence and the Form 1040-X. See IRM 3.11.6.2.5, Working Trail.

    • Mail the correspondence to the ACS Correspondence Address indicated on SERP.

    • Continue processing Form 1040-X.

  2. When routing a case to ACS, take the following action:

    • Research the Business Operating Division (BOD) code using the ACS CDP Coordinators site found on SERP to identify the correct Service Center.

      Note:

      The BOD code will be SBSE or W&I, and is located in the "BOD-CD" field of CC TXMODA.

    • Identify the appropriate Service Center based on the state in which the taxpayer resides.

      Example:

      If the BOD code is W&I, and the taxpayer resides in TX, the case would be routed to the Fresno Service Center.

Offer In Compromise (OIC)
  1. The following should be routed to OIC.

    If ... And ... Then ...
    A -Y freeze is present on the module
    1. There is an unreversed TC 480 on the module but no TC 780.

    2. There is an unreversed TC 480 on the module and a TC 780.

    1. Workable.

    2. Route the case to the appropriate campus based on the Monitoring Offer in Compromise (MOIC) Compliance Campus Locations for Offers in Compromise. Offer-in-Compromise (OIC) Compliance Campus Locations for the Monitoring of Accepted Offers

  2. When routing a case to OIC, take the following action:

    • Offer-in-Compromise (OIC) Compliance Campus Locations for the Monitoring of Accepted Offers found on SERP to identify the correct Service Center.

    • Identify the appropriate Service Center based on the state in which the taxpayer resides.

      Example:

      If the taxpayer resides in TX, the case would be routed to the Memphis Service Center.

Field Collection Cases
  1. When T- freeze is present, review the case status in the SC-STS field on CC TXMOD or STATUS field on CC IMFOLT or the STAT HIS on CC IMFOLI and follow the instructions below.

    If ... And ... Then ...
    CC IMFOL/TXMOD shows the case is in Status 26
    1. The last four digits of the Collection-Asgmt>field is 8000 (xxx8000).

    2. The last four digits of the Collection-Asgmt>field is not 8000 (xxx8000).

    Note:

    The Collection-Asgmt>field is located at the top right-hand side of CC TXMOD.

    1. Take the following action:

      • Research the first two digits of the DLN using the following link to determine where the case is to be routed.
        ASFR Centralized Processing Sites

      • Input a TC 971 AC 012.
        Exception: Do not route returns with imminent or expired ASED. Bring returns with imminent or expired ASEDs to Statute Coordinator or manager.

    2. Take the following action:

      • Research the appropriate Revenue Officer Group office address using the following link.
        RO by TSIGN/ZIP/STATE

      • Input TC 470, no closing code, using CC REQ77.

      • Input TC 971 AC 012.

      • Route the entire case to the address obtained from SERP.


      Note: If the Revenue Officer (RO) inquires why the 1040-X was routed to them, explain we cannot process the amended return without their approval since it is assigned to them.

  2. When routing a case to Field Collections, take the following action:

    • If the Collection-Asgmt>field is 8000 (xxx8000), research the first two digits of the DLN using the following link to determine where the case is to be routed. ASFR Centralized Processing Sites

    • If the last four digits of the Collection-Asgmt>field is not 8000 (xxx8000)

    • Research the appropriate Revenue Officer Group office address using the following link. RO by TSIGN/ZIP/STATE

Automated Substitute For Return (ASFR) and Non-Filer Return (NFR)
  1. ASFR returns are prepared by an IRS employee under IRC 6020(b) when a taxpayer fails to file. The taxpayer is given the opportunity to file a valid voluntary return to correct the proposed assessment, or to agree to the proposed assessment. A NFR is a return that is received in the Service after the posting of the TC 150 Dummy/SFR but prior to the issuance of the Initial Contact Letter (ICL) by Exam.

    Note:

    For more information on SFR returns, see IRM 21.5.3.4.10, Returns Prepared Under IRC Section 6020(b). For more information on NFR returns, see IRM 21.5.3.4.10.1, Non-Filer Reject Returns.

  2. When routing to ASFR or NFR:

    1. ASFR cases are routed to one of the following areas per paragraph 5 below:
      - Exam per IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing
      - CSCO per IRM 3.11.6.6.17.1, Compliance Services Collection Operation (CSCO).

    2. NFR cases are routed to one of the following areas per paragraph 5 below:
      - CIS/AM
      - The Fresno Campus ASFR unit.

  3. Identify returns for ASFR as follows:

    • CC TXMOD - The TC 150 for .00 has the literal "SFR" to the right of the Document Locator Number (DLN).

    • CC IMFOLI - The "Vestigial:" field has the literal "SUBST4" .

  4. Identity returns for NFR as follow:

    • A TC 976 is present

      Note:

      Not all NFR returns will include a Transaction Code (TC) 976 on the module.

    • CC TXMOD - The TC 150 has the literal "SFR" to the right of the Document Locator Number (DLN).

    • AIMS status of 08 or less. (open TC 420/424).

    • AIMS Status 90 with any Non-Examined Disposal Code.

      Note:

      Refer to Examination Disposal codes, for a complete list of Non Examined Disposal Codes

    • Some cases will also have the letters NFR across the front of the return.

  5. Route ASFR and NFR returns per the table below:

    If ... And ... Then ...
    SFR returns
    1. TC 420 (unreversed) and a -L freeze
      Exception: If CC AMDISA status is 08 or less then see Non-filer Reject below.

    2. No unreversed TC 420 is present

    1. See IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing.

    2. Route to CSCO per IRM 3.11.6.6.17.1, Compliance Services Collection Operation (CSCO), and input a TC 971 AC 012.

    NFR returns Identified per paragraph 2 above Route to CIS/AM.
    Posted TC 599 cc 89 on CC TXMODA   Route to CIS/AM.
    Posted TC 599 cc 88 on CC TXMODA Without a subsequent TC 599 cc 89
    • If working a MEFP or MEFS case, fax the case≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      Reminder: Input TC 971 AC 012.

    • If working paper, route to:
      Fresno Campus
      ASFR Unit Stop 81304
      5045 E Butler Ave
      Fresno, CA 93727
      Reminder: Input TC 971 AC 012.

Innocent Spouse (Form 8857)

  1. Process Form 8857, Request for Innocent Spouse Relief, or Form 1040-X referencing innocent spouse (with or without Form 8857 attached) per the following table.

    If processing ... And ... Then ...
    An e-filed case or scanned case Innocent spouse is the only issue Process the case as follows:
    1. Input a TC 290 .00, Blocking Series 05 and no RC.

    2. Input a TC 470 for all years listed on Form 8857. Include closing code 90 if the "SC-STS." field on CC TXMODA is other than 26.

    3. Input a case note stating "TC 470 has been input." If closing code 90 was include it in the case note.

    4. Complete Form 4442 stating "TC 971 AC 065 is required due to receipt of Form 8857 available on (RRD or CIS as appropriate)."

    5. Fax Form 4442 to the Cincinnati Centralized Innocent Spouse Operation (CCISO):≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    A paper case Innocent spouse is the only issue Process the case as follows:
    1. Detach the Form 8857. If Form 8857 is not attached, photocopy the statement and edit "No Form 8857 Received" across the top of the photocopy.

    2. Input a TC 290 .00, Blocking Series 05 and no RC.

    3. Input a TC 470 for all years listed on Form 8857. Include closing code 90 if the "SC-STS." field on CC TXMODA is not 26.

    4. Edit "TC 470 (with CC 90 if appropriate)" in the upper left margin of Form 1040-X.

    5. Mail Form 8857 or photocopy daily, per local procedures, to:
      Cincinnati Centralized Innocent Spouse Operation (CCISO)
      7940 Kentucky Drive
      Stop 840-F
      Florence, Kentucky 41042-2915

    Processing an e-filed case or scanned case other issue(s) present Process the case as follows:
    1. Input the adjustment.

    2. Input a TC 470 for all years listed on Form 8857. Include closing code 90 if the "SC-STS." field on CC TXMODA is other than 26.

    3. Input a case note stating "TC 470 has been input." If closing code 90 was include it in the case note.

    4. Complete Form 4442 stating "TC 971 AC 065 is required due to receipt of Form 8857 available on (RRD or CIS as appropriate)."

    5. Fax Form 4442 to CCISO: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    Processing a paper case other issue(s) present Process the case as follows:
    1. Detach the Form 8857 from the case and staple it to the back of the photocopy. If Form 8857 is not attached, photocopy the statement and edit "No Form 8857 Received" across the top of the photocopy.

    2. Input the adjustment.

    3. Input a TC 470 for all years listed on Form 8857. Include closing code 90 if the "SC-STS." field on CC TXMODA is not 26.

    4. Edit "TC 470 (with CC 90 if appropriate)" in the upper left margin of Form 1040-X.

    5. Mail Form 8857 or photocopy daily, per local procedures, to:
      Cincinnati Centralized Innocent Spouse Operation (CCISO)
      7940 Kentucky Drive
      Stop 840-F
      Florence, Kentucky 41042-2915

Injured Spouse Allocation (Form 8379)

  1. Route the return packet to CIS/AM if:

    • Taxpayer files a return with the sole purpose of filing the Injured Spouse Claim

    • Return needs a corrected adjustment

    • Return does not meet SP criteria

    • A loose Form 8379, Injured Spouse Allocation

    • Taxpayer indicates an Injured Spouse Allocation but does not submit Form 8379

    Note:

    Do not correspond or input an adjustment. Input a TC 971 AC 071 and attach Form 8379 on the front of the packet.

  2. If the taxpayer files Form 8379 with their return that has a processable adjustment:

    1. Input the adjustment as "No Source Document" (NSD).

    2. If the adjustment will result in a credit balance or the account is in a credit balance, include a hold code 1 with the adjustment to prevent refund issuance, this applies to both MFT 30 and MFT 35.

      Note:

      If there is a refund for MFT 30 and 35 and Form 8379 is attached/indicated, do not input a credit transfer. Route to CIS/AM.

    3. Input a TC 971 AC 071.

    4. Bring the Form 8379 to the top of the claim.

    5. Upon completion of the processable adjustment, route the entire original package to Injured Spouse per local procedures.

    Note:

    Correspond for missing information or signature(s) per normal procedures. See IRM 3.11.6.9, Correspondence Procedures.

Prisoner Returns

  1. IDRS CC FTBOL definer P indicates whether a taxpayer is or has been incarcerated (prisoner) and the release date if appropriate.

  2. The Command Code is running so that tax examiners are aware they are processing a prisoner’s return. Prisoners have the same rights as any other taxpayer when it comes to income tax. However, many schemes and fraudulent returns originate from prisoner populations and tax examiners need to be aware when they are working a prisoner claim in order to identify any irregularity.

  3. CC FTBOL may not always pick up that a claim is from a prisoner. Other indications of a prisoner return are:

    • TC 971 AC 123 with one of the following MISC field descriptions indicates a full-year prisoner:
      – Both
      – Primary
      – Secondary

    • Marking on envelope that indicates prisoner mail

    • PRI written on claim or Form 1040, line 1.

    • Form W-2 indicates wages earned in prison or the address indicates a prison or other correctional facility

    • Address on return or envelope identifies a prisoner

    • Address on 1098-T identifies a prisoner or a prison or other correctional facility

  4. A person is considered a full year prisoner if CC FTBOLP indicates the person was incarcerated as follows:

    • Incarcerated on or before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or

    • Incarcerated on or before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or

    • Incarcerated on or before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. If a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Researching for a Date of Release (DOR) is not necessary. This includes married filing jointly returns.

  6. If a full-year prisoner claims any of the following credits or if income earned while incarcerated is used to qualify for a credit, send a Letter 916C, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP), with paragraphs B, E, S, 2, and 5 using fill-in, Our records indicate that you are a prisoner and therefore do not qualify for certain credits.

    • Earned Income Tax Credit

    • Additional Child Tax Credit when claiming one or two children

    • Form 8863, Education Credits

  7. If taxpayer is not a full-year prisoner and there is no indication they were paid for work while incarcerated, follow chart below.

    If ... Then ...
    IRPTR data is available for the year of the tax return and the return verifies Continue processing claim.
    IRPTR data is not available for the tax year of the return or unable to verify wages Input a TC 290 .00 and send Letter 916C, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP), using fill-in: We cannot verify your claim for wages and/or withholding. Please verify your information.

    Reminder:

    On a married filing jointly return verify CC IRPTR information for both spouses.

Combat Zone

  1. Submission Processing will only process Combat Zone claims with net refund or zero-balance.

  2. If a -C freeze is displayed on CC TXMOD/IMFOL, verify the taxpayer is actively serving in a designated combat zone. Treat the return as a combat zone if:

    • There is a -C freeze on TXMOD/IMFOL and a Combat Indicator of 1 on CC IMFOLE.
      or

    • Taxpayer notates on the return that they are actively serving in a combat zone.

  3. If a -C freeze with a Combat Indicator of "1" is present, then CC IMFOLE or CC ENMOD will show a TC 500 with a Closing Code (cc). There may be several entry/exit dates, use only the most recent to determine current Combat Zone status.

    • If the closing code is an even number, treat as a Combat Zone return.

    • If the closing code is an odd number, continue processing the return and do not treat as a Combat Zone return.

    Note:

    If the literal "Combat Zone" is present on IDRS ensure there is a -C freeze before treating as a Combat Zone. The literal without the freeze is only an indication of prior Combat Zone status.

  4. If an active Combat Zone has a net balance due, route to CIS/AM

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but continue to route if they meet CIS/AM criteria.

    Note:

    All protective claims must be referred as CAT-A even if the taxpayer is actively serving in a Combat Zone.

  6. If there is no -C freeze on a return that has been identified as a Combat Zone return, route CIS/AM.

  7. Follow correspondence procedures, see IRM 3.11.6.9, Correspondence Procedures, when required information is missing from the return.

  8. When processing, do not enter an Amended Claims date.

  9. A taxpayer (or their spouse, if married filing jointly) receiving nontaxable combat pay may elect to include the amount when figuring his/her earned income for purposes of computing EIC.

  10. Do not confuse Combat Zone with the Military Family Relief Act, see IRM 3.11.6.13.2.1.6, Military Family Relief Act (Line 1).

Decedent Returns

  1. Submission Processing will only process balance due and zero-balance decedent 1040-X returns.

  2. Indications of a deceased taxpayer may include any of the following:

    1. Date of death is present

    2. "Deceased" written on the top of the form

    3. "Deceased, Filing as surviving spouse," or similar notation in the signature area

    4. Death certificate, Form 1310, or other documentation is attached

    5. "DECD" on an IRS label or written after a person’s name

    6. "Estate of" is present

  3. Route the following to CIS/AM:

    1. Refund returns for deceased taxpayers

    2. If MFR 08 is present on CC INOLES indicating the primary taxpayer is deceased

    3. Returns with Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, attached

  4. If the signature of the deceased taxpayer is present on the signature line of the return, the signature must precede the date of death of the taxpayer. If it does not, correspond for a valid signature.

  5. if the return is not signed by a surviving spouse, an executor, or an administrator, correspond per IRM 3.11.6.10, Correspondence Table of Issues, C-Letters and Paragraph Fill-ins.

    Reminder:

    On MFJ claims, the surviving spouse must sign as a surviving spouse. Correspond if missing.

  6. If correspondence is required for any missing signature, forms, or schedules, do not address the correspondence to the deceased taxpayer.

    1. If the return is filing status 2, then address correspondence to surviving spouse

    2. For all other filing status, address correspondence with "Estate of" placed in front of the taxpayer's name (e.g., Estate of John Smith Decd)

      Note:

      A Power of Attorney (POA) becomes void upon taxpayer's death.

  7. Documentary evidence is not required for the authority to sign the following:

    1. Balance due returns

    2. Zero/even balance returns

    3. Married filing joint (FS 2) or married filing separate (FS 3) returns signed by the surviving spouse

Releasing Screened Returns

  1. To release forms that are screened, sort into batches for each category and follow local routing procedures (including Batch Transmittal).

  2. E-filed forms that are screened will be released using CIS.

  3. "Hand carry" statute returns following local procedures.

    Exception:

    When working e-filed amended returns or CIS imaged cases, route using CIS.

  4. For "PECF Dummy" returns to be processed through ISRP, notate the correct Program Code and Blocking Series for Batching and Numbering function.

  5. Follow IDRS screening procedures for sorting and routing returns or correspondence to another function. Follow local procedures to route Carryback/Carryforward claims, Disaster Claims, Injured Spouse, Innocent Spouse, Statute returns, etc., to CIS/AM.

Transaction Code (TC) 971 and Action Codes
  1. A TC 971, when input with one of the action codes (AC) below, indicates the taxpayer filed an amended return and begins an action trail for the document. The action code indicates where the return was routed. Since some of these actions generate a TC 977 on master file and a "-A or E-" freeze on IDRS, the received date of the Form 1040-X must be input for the transaction date. For AC 270, the current date is entered when mailing a refund return back to the filer. Generally, do not enter an action code if you are only routing correspondence or form attached to a Form 1040-X.

  2. The most common TC 971 action codes are:

    Action Code Description
    010 Mef amended returns, scanned cases to be processed in SP, and paper filed amended return claims forwarded to Accounts Management (Automatically input by CIS)
    012 Collection (When routing the entire return)
    013 EXAM/Frivolous
    014 Statute function
    015 Underreporter function
    016 Destination International Cases amended returns/claims go to Philadelphia (Automatically input by CIS)
    065 Form 8857, Request for Innocent Spouse Relief (and Separation of Liability and Equitable Relief), filed. Route to Covington, KY. (Input by Cincinnati Centralized Innocent Spouse Operation)
    071 Form 8379, Injured Spouse Claim and Allocation
    111 ID Theft
    113 Total AOTC, CTC and/or EIC amounts that were disallowed due to the PATH Act.
    120 Amended return/claim in Submission Processing
    123 Unemployment Compensation Exclusion Recovery can be identified by the MISC field entry, UCERECOVERY03112021. See IRM 3.11.6.13.2.1.3, Unemployment Compensation Exclusion (UCE) - Tax Year 2020 (Line 1).
    134 RIVO or CI SDC. See IRM 3.11.6.6.9, Return Integrity and Verification Operation (RIVO) Guidance .
    137 Refer to IRM 3.11.6.11.1, Entity Changes.
    192 Schedule LEP, Request for Alternative Language Products by Taxpayers With Limited English Proficiency (LEP). See IRM 3.11.6.11.2, Schedule LEP, Request for Change in Language Preference.
    270 Amended return sent back to the taxpayer for additional information. Enter the current date as TRANS-DT.
    592 Form 9000, Alternate Media Preference. See IRM 3.11.6.11.3, Form 9000, Alternative Media Preference.
    698 Form 8938, Statement of Foreign Financial Assets, attached to Form 1040-X. See IRM 3.11.6.6.23.1.1, Form 8938, Statement of Foreign Financial Assets.

    Note:

    For further information, see TC 971 action codes in Document 6209, IRS Processing Codes and Information, Section 8C, Master File Codes.

Form 8938, Statement of Specified Foreign Financial Assets
  1. A Transaction Code (TC) 971 Action Code (AC) must be input on all cases with a Form 8938, Statement of Specified Foreign Financial Assets, attached. Input a TC 971 AC 698 even when routing.

  2. If Form 8938, Statement of Specified Foreign Financial Assets, is the only issue, input a TC 290 for .00. If other issues are involved, process as normal and keep Form 8938, Statement of Foreign Financial Assets with claim.

Forms 1040-X Processed through the Integrated Submission and Remittance Processing (ISRP) Input
  1. The following returns may be prepared or edited by the 1040-X Unit for input through the ISRP system instead of IDRS:

    1. PECF "Dummy" returns when the filer has checked one or both PECF boxes on the Form 1040-X. See IRM 3.11.6.3.5, Processing Presidential Election Campaign Fund (PECF) Requests.

    2. An "original" return is prepared by IRS from data shown on a Form 1040-X when no TC 150 has posted for a statute return. The 1040-X unit will convert the Form 1040-X to a Form 1040 and route to Statutes instead of ISRP. See IRM 3.11.6.6.5, Statute Review.

  2. To release returns processed through ISRP, a transmittal to Batching is prepared and Program Code 44400 for the "Dummy PECF" returns is notated. Any return that is sent to Code and Edit to be processed as an original will be blocked in the correct series by Batching.

1040-X Routing Guide

  1. Dollar ($) Tolerance is the change to Total Tax (line 11) unless otherwise indicated. CAT-A tolerances refer to Total Tax decrease as a direct result of the specific condition without regard to the module balance.

  2. If an IRM subsection and the Routing Guide contain conflicting information, the specific section instructions take precedence over the general instructions contained in the Routing Guide.

  3. When multiple routing conditions are present, see IRM 3.11.6.6, Sorting, Routing, and Priority Processing. The Maildex IRM 3.10.72, Receiving, Extracting, and Sorting, contains a complete list of forms, letters, CPs and their routing.

  4. If unable to locate instructions for a specific form in this IRM, check the Maildex/Correspondex for handling instructions. The Maildex IRM 3.10.72-1, Routing Guide/Local Maildex, contains instructions for forms and CPs while IRM 3.10.72-2, Correspondex C Letters – Routing Guide, contains instructions for correspondence.

  5. Routing criteria is located throughout this IRM. This Routing Guide is to be used as a reference list of forms, schedules, documents, and tolerances that have route out criteria not mentioned elsewhere. Specifically, lists of routing criteria are found in:

    • IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria

    • IRM 3.11.6.6.7.1, List Frivolous Claims

    • IRM 3.11.6.6.12.1, International

    • IRM 3.11.6.14.1, Freeze Codes

    • IRM 3.11.6.14.2, IDRS Transaction Codes

  6. The common "When to Route" conditions in the Routing Guide are defined as follows:

    • Always: If the conditions are met, route without regard of any changes to the taxpayer’s figures even if the condition does not appear to be amended.

    • If Changing: There must be a change to the dollar amount reported on the tax return. This does not include changes within the Form or Schedule that have no effect on the outcome.

    • See IRM 3.11.6.X.X: Review the IRM reference for specific instructions prior to routing.

    • All other situations should fully describe the appropriate "Route if" condition.

  7. The following table contains routing instructions for cases not worked by SP 1040-X.

    Condition When to Route Where to Route
    1. Abatement or refund of any previous tax assessed by Examination, or Substitute for Return Program.

    Exception:

    Route to CIS/AM if the Exam case had no additional tax assessed and was closed as Non-Examined.

    See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    2. Age discrimination claims (IRC 104(a)(2)) Always CIS/AM
    3. Alimony paid deduction (TIN of recipient provided) If changing CIS/AM
    4. Claim reducing capital gain preference items for the Alternative Minimum Tax (AMT) (PL 99-272) If changing CIS/AM
    5. Archer MSA ( Form 8853) Always CIS/AM
    6. Basket Option Transactions
    • Filed under Notice 2015-73

    • Filed under Notice 2015-74

    Always CIS/AM
    7. Casualty Loss, Non-Disaster See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    8. Claims with Project Codes: 0173, 0263, 0584, 0611 Including open Z- Freeze cases See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    9. CIS imaged Form 1040-X See IRM 3.11.6.6.14, Accounts Management Cases. CIS/AM
    10. Clean-Fuel Vehicle - (IRC 179A) Always CIS/AM
    11. CP 59 IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO). Batching or CSCO
    12. CP 85A, CP 85B, or CP 85C :
    1. are attached to an amended return

    2. are loose

    1. Always

    2. Always

    1. Process as normal

    2. Route to Batching

    13. CP 87A, CP 87B, or CP 87C:
    1. are attached to an amended return

    2. are loose

    1. Always

    2. Always

    1. Process as normal

    2. Route to Batching

    14. CP 503 IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO). Detach and route to Collections
    15. CP 504 IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO). Detach and route to Collections
    16. CP 523 Always Collections
    17. CP 2000

    Reminder:

    Check last process code of the TC 922

    See IRM 3.11.6.6.11, Automated Underreporter (AUR). Underreporter
    18. CP 2006

    Reminder:

    Check last process code of the TC 922

    See IRM 3.11.6.6.11, Automated Underreporter (AUR). Underreporter
    19. CP 2501

    Reminder:

    Check last process code of the TC 922

    See IRM 3.11.6.6.11, Automated Underreporter (AUR) Underreporter
    20. Disabled Combat Veteran, Combat Injured Veteran (or similar),
    Letter 6060-A or Letter 6060-D letter attached
    (taxable to nontaxable)
    Disability Severance Pay
    Military Retirement
    Military Disability Pay
    VA Claim
    St. Clair vs US
    Strickland Claim
    Always CIS/AM
    21. Disallowed claim resubmitted Always CIS/AM
    22. Domestic Production Activities Deduction (Form 8903) If changing CIS/AM
    23. Dual Status Always International
    24. Erroneous Refunds Always CIS/AM
    25. Examination Classification Disallowed or Rejected Always CIS/AM
    26. Excess Contributions to an IRA Always CIS/AM
    27. Exonerated Prisoner, Incarceration Exclusion PATH Act, or similar notation Always Route to CIS/AM with EXPR as the working trail
    28. Extraterritorial Income exclusion (Form 8873) Always CIS/AM
    29. Fellowship, grant, or stipend See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    30. FICA (SS Tax) / RRTA - Refund claim for students based on IRC 3121(b)(10) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    31. FICA (SS Tax) / RRTA - Refund claim for student nurses based on IRC 312(b)(13) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    32. FICA (SS Tax) / RRTA - Refund Claim by foreign student See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CIS/AM
    33. Fiscal Year Filer Always CIS/AM
    34. Form 433-D, Installment Agreement See IRM 3.11.6.6.17.1, Compliance Services Collection Operations (CSCO). Collections
    35. Form 499/W-2PR/W-3PR Withholding Statement Always CIS/AM
    36. Form 843, Claim for Refund and Request for abatement Always CIS/AM
    37. Form 906, Closing Agreement on Final Determination Covering Specific Matters See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    38. Form 926, Return by a U.S. Transferrer of Property to a Foreign Corporation Always CIS/AM
    39. Form 965 or IRC 965 notated Always CIS/AM
    40. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) If attached or mentioned CIS/AM
    41. Form 1040-C, U.S. Departing Alien income tax return Always CIS/AM
    42. Form 1040 Guam Always International
    43. Form 1040-NR, U.S. Nonresident Alien Tax Return Always International
    44. Form 1040-PR Always International
    45. Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Always CIS/AM
    46. Form 1042-S, Foreign Person's U.S. Source Income Subject to W/H Always International
    47. Form 1045, Application for Tentative Refund Always CB/CF
    48. Form 1095-A, with amounts in Part III column C Always CIS/AM with working trail PTCX
    49. Form 1099-MISC, Miscellaneous Income. Income is questionable. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    50. Form 1099-Q Payments from Qualified Education Programs If changing CIS/AM
    51. Form 1099-VI (Virgin Island) Always International
    52. Form 1116, Foreign Tax Credit

    Note:

    If Form 1118 ,Foreign Tax Credit - Corporations, is attached, always route to CIS/AM

    If changing CIS/AM
    53. Form 1310, Statement of Person Claiming Refund Due to a Deceased Taxpayer Always CIS/AM
    54. Form 2159, Payroll Deduction Agreement Always Detach Form from the amended return and route to Collection Operation.
    55. Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen Always CIS/AM
    56. Form 2555/Form 2555-EZ, Foreign Earned Income Always International
    57. Form 3115, Application for Changing in Account Method Always CIS/AM
    58. Form 3520, Annual Return of Foreign Trust with U.S. Owner Always International
    59. Form 3911, Taxpayer Statement Regarding Refund Always Detach and route to Refund Inquiry per local procedures.
    60. Form 3949, Information Report Referral Always Detach and route to your local function based on the checked box on line 9-14 on the second page.
    61. Form 3949-A, Information Referral Always Route to OSC
    Mail Stop: 6273
    62. Form 4137, Social Security and Medicare Tax on Unreported Tip Income If changing CIS/AM
    63. Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa Always International
    64. Form 5074, Allocation of Individual Retirement Arrangement Tax to Guam or Commonwealth of the Northern Mariana Island Always International
    65. Form 5405, First Time Home Buyer Credit Recapture/Repayment If changing CIS/AM
    66. Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations Always CIS/AM
    67. Form 5884-B, New Hire Retention Credit Always CIS/AM
    68. Form 6118, Claim for Refund of Tax Return Preparer and Promoter Penalties

    Exception:

    Form 6118 with only penalty type "J" in column "C" .

    Always CAT-A
    69. Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    70. Form 8275, Disclosure Statement (or written disclosure statement citing Section 6662) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    71. Form 8288, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests Always CIS/AM
    72. Form 8288-A, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests Always CIS/AM
    73. Form 8288-B, Withholding on Distributions by Foreign Persons of U.S. Real Property Interests Always CIS/AM
    74. Form 8615, Tax for Certain Children Who Have Unearned Income Always CIS/AM
    75. Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands Always International
    76. Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    77. Form 8801, Credit Paid for Prior Year Minimum Tax If changing CIS/AM
    78. Form 8813, Partnership Withholding Tax Payment Voucher With remittance attached See IRM 3.11.6.6.12.1, International Return Criteria.
    79. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) Always International
    80. Form 8839, Qualified Adoption Expenses If changing CIS/AM

    Caution:

    CAT-A criteria may apply. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

    81. Form 8853, Archer MSAs and Long-Term Care Insurance Always CIS/AM
    82. Form 8854, Initial and Annual Expatriation Information Statement Always CIS/AM
    83. Form 8859, District of Columbia First-Time Home Buyer Credit See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    84. Form 8862, Information To Claim Certain Refundable Credits After Disallowance Always CIS/AM
    85. Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Met See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria CAT-A
    86. Form 8873, Extraterritorial Income Exclusion Always CIS/AM
    87. Form 8885, Health Coverage Tax Credit If changing CIS/AM with HCTC in the working trail

    Caution:

    CAT-A criteria may apply. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

    88. Form 8889, Health Savings Account If changing CIS/AM
    89. Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans Always CIS/AM
    90. Form 8903, Domestic Production Activities Deduction If changing CIS/AM
    91. Form 8915-A, Qualified 2016 Disaster Retirement Plan Distributions and Repayments Always CIS/AM
    92. Form 8915-B, Qualified 2017 Disaster Retirement Plan Distributions and Repayments Always CIS/AM
    93. Form 8915-C, Qualified 2018 Disaster Retirement Plan Distributions and Repayments Always CIS/AM
    94. Form 8915-D, Qualified 2019 Disaster Retirement Plan Distributions and Repayments Always CIS/AM
    95. Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments Always CIS/AM
    96. Form 8919, Uncollected Social Security and Medicare Tax on Wages If changing CIS/AM
    97. Form 8939, Allocation of Increase in Basis for property received from a Decedent Always Process the amended return as normal. Route Form 8939 to:
    Estate and Gift Tax Operation
    Internal Revenue Service
    201 W Rivercenter Blvd
    Covington, KY 41011
    Attn.: Stop 824G
    98. Form 8959, Additional Medicare Tax If changing CIS/AM
    99. Form 8960, Net Investment Income Tax If changing CIS/AM

    Caution:

    CAT-A criteria may apply. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

    100. Form 8962, Premium Tax Credit (PTC) See IRM 3.11.6.13.6.5, Premium Tax Credit (PTC), Form 8962. CIS/AM and notate in the working trail PTCX

    Caution:

    CAT-A criteria may apply. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

    101. Form 8994, FMLA If changing CIS/AM
    102. Form 8996, Qualified Opportunity Fund If changing CIS/AM
    103. Form 9465, Installment Agreement Request See IRM 3.11.6.6.17.1 , Compliance Services Collection Operations (CSCO). Collections
    104. Form 14039, Identity Theft Affidavit See IRM 3.11.6.6.4, Identity Theft. CIS/AM or Batching
    105. Form 14157 Complaint: Tax Return Preparer

    Note:

    If Form 14157-A is also attached, follow the Form 14157-A procedures

    Always Route to: Attn: Return Preparer Office
    401 W Peachtree Street NW
    Mail Stop 421-D
    Atlanta, GA 30308
    106. Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit Always Route completed form along with any supporting information to: CIS/AM.
    107. Fulbright Grantee Always CIS/AM
    108. Golden Parachute Claims See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    109. Goldmine claims investment losses or developmental expenses/interest from a Colorado goldmine See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    110. Goodwill deduction on Schedule C and/or Schedule E including K-1s
    • Self-Created Goodwill

    • Intangible Asset Deduction

    • Amortization

    • IRC 197

    • IRC 167

    • Income Tax Reg. 1.167

    See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    111. Grants, Fellowships or Stipend See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    112. Health Care Act Excluding student loan amount Always CIS/AM
    113. Household Employee Income, Household Help, (HSH)
    • If the HSH amount is changing

    • HSH is present and there is a change to any credit

    CIS/AM
    114. "ICT/IVO" notation on the amended return or in the remarks Always Route to CIS/AM with ICT/IVO as the working trail. See IRM 3.11.6.6.9, Return Integrity and Verification Operation (RIVO) Guidance.
    115. Immediate disallowance requested Always CIS/AM
    116. Income - Changes of any income from taxable to non-taxable (i.e., reclassify wages as non-taxable income, such as worker’s compensation or statement that income is not taxable because of a specific reason) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    117. Insolvent Farmer If changing CIS/AM
    118. Interest Refund or abatement of any previous interest assessments made by Examination, DATC/ASTA, or AUR and Substitute for Returns program See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    119. International Return originally filed or Form 1040-X Always International
    120. International Treaty cited income or tax excluded Always International
    121 IRA Rollover If changing CIS/AM
    122. IRA Deduction If changing CIS/AM
    123. IRC 26 CFR 1.931.1 Always CIS/AM
    124. IRC 104(a)(2) – Claim that income from payment is based on age discrimination are excludable Always CIS/AM
    125. IRC 134 – Claim that compensation as JROTC instructors is tax exempt Always CIS/AM
    126. IRC 165 – Claim for theft losses due to corporate misconduct and Ponzi schemes See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    127. IRC 179A – Clean Fuel Vehicle Always CIS/AM
    128. IRC 280G – Golden Parachute claims See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    129. IRC 301 – Veteran’s Disability Compensation is excluded from gross income (This includes St Clair vs. US claims, IRS Ruling 80-9)
    CSRC or CDRP
    X% disabled (or VA disability X%)
    taxable to non-taxable
    Strickland Claim
    Pub 525
    Always CIS/AM
    130. IRC 616(a) – Goldmine claims See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    131. IRC 692 – Federal Income Tax Forgiveness for Certain U.S. Military and Civilian Employees and Other Individuals Always CIS/AM with KITA as a working trail
    132. IRC 803 – Victims of Nazi Regime Always CIS/AM
    133. IRC 911, IRC 913, IRC 931, or IRC 933 Always CIS/AM
    134. IRC 1341 – Repayments of Debt Cancellation Always CIS/AM
    135. IRC 3121(b)(10) or IRC 3121(b)(13) – FICA ref. for student or nurse See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    136. IRC 4999 – Golden Parachute claims See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    137. IRC 6405 – Joint Committee

    Note:

    For multiple periods, the refund amount is the total for all tax periods.

    See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    138. IRC 6851 – Tax Year terminated by the IRS See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    139. Joint Committee Return See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    140. "Letter 6173," "Letter 6174," "Letter 6174-A," "Virtual Currency," or similar wording (e.g. Crypto) Always CIS/AM
    141. Lottery Winnings (lump sum payment change from ordinary income to capital gain) Always CIS/AM
    142. Lump sum payment excluded from income Always CIS/AM
    143. Manual Adjustment to penalties and/or interest on tax liabilities. This is not the same as ES Penalties (TC170/176) Always CIS/AM
    144. Maritime Claims
    1. With a breakdown of days, localities, and rates

    2. Without a breakdown of days, localities, and rates

    1. See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria.

    2. All others

    1. CAT-A

    2. CIS/AM

    145. May Dept. Store vs. Sequa Rev. Rul. 99-40 Always CIS/AM
    146. Medical/Dental Resident FICA Claims, includes:
    • Mayo Clinic

    • Minnesota vs. Apfel

    Always CIS/AM
    147. "Microcaptive" Always Route to:
    Internal Revenue Service
    2970 Market Street
    Philadelphia, PA 19104
    148. Misapplied Payment See IRM 3.11.6.13.4.2, Estimated Tax Payments (Line 13). CIS/AM
    149. Net Operating Loss (NOL) or any indication of a NOL loss If changing Carryback Carryforward
    150. Non-Disaster Casualty Loss See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    151. Non-Resident Aliens Always CIS/AM
    152. Pension Protection Act PL 109-280 Always CIS/AM
    153. Personal injury damages excluded from income (IRC 104(a)(2) Always CIS/AM
    154. Pigford vs. USDA
    Pigford vs. other
    Black Farmers Suit
    Keepseagle vs. USDA
    Native Americans vs. USDA
    Pigford II vs. USDA
    Always CIS/AM
    155. Police Meal Expense Always CIS/AM
    156. Protective Claim refund / zero-balance / blank See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    157. Public Law 99-272 Insolvent Farmer / AMT Always CIS/AM
    158. Public Safety Officer PSO Exclusion indicated on return Always CIS/AM
    159. Reconsideration Letter attached Always Input TC 971 AC 010
    Mail return w/ 3210 to:
    IRS Andover Campus
    310 Lowell St
    Andover, MA 01810
    160. Reed Slatkin Claim eliminating interest, dividend, capital gain income, and theft or casualty losses associated with Reed Slatkin Investment Club See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    161. Refund Less than $1.00 or greater than $10 million CIS/AM
    162. Refund or abatement of any previous penalties manually assessed by Examination, DATC/ASTA, or AUR and Substitute for Return SFR program See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    163. Refund Inquiry Always CIS/AM
    164. Refund Scheme
    1. With -Z or Z- freeze code

    2. Without a -Z or Z-

    1. CI SDC

    2. RIVO

    165. Registered Domestic partners (RDPs). Can also be identified as CCA201021050 or CCA. Always CIS/AM
    166. Resubmitted Claim/Re-submission or Appeal of a previously rejected claim Always CIS/AM
    167. Revenue Ruling 57-383 (Strike Fund Benefits Claim for refund) Always CIS/AM
    168. Rollover of Airline Payments to Traditional IRAs If changing CIS/AM
    169. ROTH IRA If changing CIS/AM
    170. Safe Harbor Always CIS/AM
    171. Schedule C, Profit or Loss from Business
    New / additional Expenses not claimed on original return
    1. Basic criteria – Includes changes to income and/or deductions, unless the only change is due to depreciation. See (b) below.

    2. If the only change is due to depreciation, refer to criteria (b) in the next column.

    See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    172. Schedule E, Supplemental Income and Loss
    • New / additional expenses or losses not related to Sch K-1 (Sch E, Parts II and III

    • New / additional losses related to Schedule K-1 (Parts II and III)

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

    See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    173. Schedule F, Profit or Loss from Farming, new / additional expenses not claimed on original return See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    174. Schedule H, Household Employment Taxes, If changing CIS/AM
    175. Seller Paid Points (also see Schedule A)
    • Claimed for tax period other than year of purchase

    • HUD-1 or Settlement Statement not attached

    • Loan origination fees, Loan discount, Discount Points, Paid Points, not mentioned on HUD-1 or Settlement Statement

    • Property taxes, appraisals, inspections, title, or attorney fees included as deductible points

    If changing CIS/AM
    176. SFR literal on CC TXMOD or SUBST4 literal on CC IMFOLI TC 150 for .00 Always Collections
    177. State or Local Returns (original / signed) Always Detach and route to Receipt & Control
    178. Student Loan Forgiveness If changing CIS/AM
    179. Tax Equity and Fiscal Responsibility Act
    • TEFRA

    • Letter 3906

    • Letter 4505 (any)

    Always CIS/AM
    180. Tax return preparer, promoter, and appraisal penalties See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    181. Transportation Expenses (Rev. Ruling 90-23 or 94-97) See IRM 3.11.6.6.10.1, Category A (CAT-A) Criteria. CAT-A
    182. Treaty, any indication of an international treaty or U.S. Tax Treaty Always International
    183. Treaty Trader Always CIS/AM
    184.
    • Tribal General Welfare Exclusion Act of 2014

    • General Welfare

    • H.R. 3043

    • Notice 2012–78

    • Revenue Procedure 2015–35

    Always OSPC
    1973 Rulon White Blvd.
    Ogden, UT 84201
    M/S 7700, Attn: GECS
    185. Unemployment compensation repayments Always CIS/AM
    186. United Mine Workers of America (UMWA) Refunds claimed for premiums paid If changing CIS/AM
    187. United States Tax Treaty Taxpayer claiming benefits under Always International
    188. UDC - Unlawful Discrimination Claims, identified as a write in of UDC Always CIS/AM
    189. Victim of Terrorist Action
    • Anthrax

    • Oklahoma City

    • IRC 104(a)

    • Killed in Action (KIA)

    • 9 / 11

    • 911 Rescue Workers

    • Pub 3920

    • Tax Forgiveness Victims of Terrorist Act

    • World Trade Center (WTC)

    Always Route to CIS/AM with KITA as the working trail
    190. W-2(AS), W-2(CM/CNMI), W-2(GU), W-2(PR) Wage and Tax Statement Always CIS/AM
    191. W-2(VI), U.S. Virgin Islands Wage and Tax Statement Always IRM 3.11.6.6.12, International Returns.
    192. W-7, Application for IRS Individual Taxpayer Identification Number / Application for Taxpayer Identification Number for Pending U.S. Adoptions
    • Attached, or the taxpayer requests additional information to complete processing

    Always Austin Submission Processing Campus
    ITIN Operation
    Stop: AUSC 6090
    3651 S IH 35
    Austin, TX 78714-9342

    Note:

    Keep all documentation provided by the taxpayer with the application; this may include original passports and birth certificates

    193. W-7/A, Application for Taxpayer Identification Number for Pending U.S. Adoptions (ATIN), is attached to a Form 1040-X Always Austin Submission Processing Campus
    Internal Revenue Service
    ATIN Unit
    3651 S IH 35
    Stop 6182
    Austin, TX 78767
    194. W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding Always International
    195. Walker Tax Court Decision Transportation expense tax deduction Always CIS/AM
    196. Williams Claims Always CIS/AM
    197. Zero Return- Transcription Error See IRM 21.4.1.4.1.2.2, Return Found - Processing Errors Identified CIS/AM

1040-X MEFP and MEFS Reassignment and Reroute Guides

  1. The MEFP and MEFS reassignment and reroute guides are to be used when processing e-filed amended returns and CIS cases assigned to SP 1040-X.

    Caution:

    Reassigned cases that do not have a "valid AM CIS combination" will be rejected by AM and returned to the MEFP and MEFS AM rejected queue, and then to the TE for correction. See IRM 3.11.6.8.3, MEFP and MEFS Accounts Management Rejected Queue.

  2. Routing priority applies to reassigning and rerouting MEFP and MEFS cases.

    Exception:

    Certain MEFP and MEFS cases will require special handling when reassigning as described in paragraph 2 of IRM 3.11.6.8.1, 1040-X MEFP Reassignment and Reroute Guide, and IRM 3.11.6.8.2, 1040-X MEFS Reassignment and Reroute Guide.

  3. See IRM 3.11.6.2.5, Working Trail, prior to using the CIS Reassign/Reroute function.

MEFP Reassignment and Reroute Guide

  1. Follow the instructions below when reassigning or rerouting a MEFP case.

  2. If International routing criteria per IRM 3.11.6.6.12, International Returns, or IRM 3.11.6.6.12.1, International Return Criteria, is also present with one of the routing conditions below, reassign the case based on the additional issue instructions.

    • Disaster Claim per IRM 3.11.6.6.2, Disaster Claims.

    • Carryback

    • Carryforward

    • Identity Theft per IRM 3.11.6.6.4, Identity Theft.

    • Injured Spouse per IRM 3.11.6.6.19, Injured Spouse Allocation (Form 8379).

    • Zero Return per IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

    Example:

    If a case has both International and Carryback criteria, reassign the case per the Carryback International instructions in paragraph 4 below.

  3. When reassigning a case, do not close the open control base.

  4. Update the case data per IRM 3.11.6.3.7, Updating Case Data, and follow the table below:

    Note:

    Update the required"MFT" , "Work Type" , "Function" , and "Statute Search" fields as appropriate

    Caution:

    If the case data is updated incorrectly, the case will be sent back to you for correction.

    If ... And ... Then ...
    Carryback
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Carryback MeF.

      2. Category MEFC.
        Exception: If Form 1045 or Form 1139 is attached, use:
        • Doc Type Carryback
        • Category TENT.
        Exception: If Form 1045 or Form 1139 is attached, use:
        • Doc Type Carryback
        • Category TENT.

    2. Use:

      1. Work Type IMF INTL.

      2. Doc Type Carryback MEF.

      3. Category MEFR.
        Exception: If Form 1045 or Form 1139 is attached, use:
        • Doc Type Carryback
        • Category ITCB.

    Carryforward
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Carryforward.

      2. Category CFWD.

    2. Use:

      1. Work Type IMF INTL

      2. Doc Type Carryforward.

      3. Category ICFD.

    CAT-A
    1. The CAT-A issue would normally meet SP criteria.

    2. The CAT-A issue would normally meet SP criteria if the tolerance was not met, and there is also an out of scope issue present on the case.

    3. The CAT-A issue would not normally meet SP criteria.

    4. There is an open AUR case that meets CAT-A Criteria.

    1. Use:

      1. Doc Type 1040X - CATA.

      2. Category CATA.

      3. Suspend to CAT-A

    2. See Out of Scope below.

    3. See Out of Scope below.

    4. See paragraph 6 below.

    Combat Injured Veterans Tax Fairness Act of 2016, St Clair Claims - SPC8   Use:
    1. Doc Type 1040X Veteran Claim.

    2. Category VRET.

    Disaster Claim
    1. Domestic

    2. International

    1. Use:

      1. Doc Type 1040X.

      2. Category DSTR or KATX per IRM 3.11.6.6.2, Disaster Claims.

    2. Use:

      1. Doc Type 1040X.

      2. Category DSTR or KATX per IRM 3.11.6.6.2, Disaster Claims.

    Form 14039 Non-tax related (English) Use:
    1. Doc Type ID Theft IDT4.

    2. Category IDT4.

    Identity Theft
    1. Domestic - Taxpayer Identified.

    2. Domestic- IRS Identified.

    3. International- Taxpayer Identified.

    4. International- IRS Identified.

    1. Use:

      1. Doc Type ID Theft IDT1.

      2. Category IDT1.

    2. Use:

      1. Doc Type ID Theft IDT3.

      2. Category IDT3.

    3. Use:

      1. Doc Type ID Theft IDT1.

      2. Category IDT1.

    4. Use:

      1. Doc Type ID Theft IDT3.

      2. Category IDT3.

    Injured Spouse
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Injured Spouse Claim.

      2. Category DMFC.

      3. Program Code 97140

    2. Use:

      1. Doc Type Injured Spouse Claim.

      2. Category DMFC.

      3. Program Code 97140

    International
    1. Carryback

    2. Carryforward

    3. Identity Theft

    4. Injured Spouse

    5. Zero Return

    6. Form 1040-X or Amended Form 1040 not meeting the criteria directly above.

    1. See Carryback above.

    2. See Carryforward above.

    3. See Identity Theft above.

    4. See Injured Spouse above.

    5. See Zero Return below.

    6. Use:

      1. Work Type IMF INTL

      2. Doc Type 1040X MEF.

      3. Category MEFI.

      4. Campus PSC.

      5. Reassign

    IRC 965 IRC 965 is mentioned or Form 965 is attached. Use:
    1. Doc Type IRC 965 1040X.

    2. Category 965X.

    KITA   Use:
    1. Doc Type 1040X.

    2. Category KITA.

    Out of Scope   Use:
    1. Doc Type 1040X MeF.

    2. Category MEFA.

    Premium Tax Credit   Use:
    1. Doc Type ACA-1040X.

    2. Category ACAX.

    Scrambled SSN cases   Use:
    1. Doc Type 1040X.

    2. Category SCRM.

    TAS   Use:
    1. Doc Type 1040X MEF.

    2. Category MEFA.

    VA Claims Veterans Disability Claims   Use:
    1. Doc Type 1040X Veteran Claim.

    2. Category VRET.

    Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.
    1. Domestic

    2. International

    1. Use:

      1. Doc Type 1040X

      2. Category SPC5

    2. Use:

      1. Doc Type 1040X

      2. Category SPC5

  5. When reassigning a case, use the appropriate CSR queue number from the AM Site Specialization Temporary Holding Numbers list on the SERP that correlates to the Doc Type and Category from paragraph 3 above.

    Note:

    When reassigning a case to TAS, CAT-A, Premium Tax Credit use the Out of Scope CSR queue number.

    Exception:

    When reassigning a case to the International queue, select "PSC" in "Campus" field when updating the case data.

    Exception:

    When reassigning an open case to AM, use the CSR number in the" ASSIGN-TO" field of the open control. If the case is open to a generic AM queue, reassign the case to the Out of Scope (All Other Claims) queue.

  6. When Rerouting a case, follow the table below:

    If ... Then ...
    Reroute EITC Follow IRM 3.11.6.12.6, Command Code DDBCK (Dependent Database Check).
    Reroute Exam
    1. Complete the "Exam Referral Data" section as follows:

      1. Complete the "To Stop # " field per IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing.
        Note: If the SBC is not all zeroes, input the address in the Comments field. If there is not a stop number available, input N/A in the To Stop # field.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.

      Note:

      Some of these fields may populate by default.

    2. Complete the "Action" section as follows:

      1. Check the "Tax Decrease has NOT Been Made" check box.

      2. Check the "TC971-013" check box.

      3. Input a TC 971 AC 013 per IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing.

    3. Complete the "Reason Referred" section as follows:

      1. Check the "Open AIMS" check box.

      2. Use CC AMDISA to complete the following:

        • EGC field.

        • Source Code field.

        • Status Code field.

        • Date field using the Current Status Code Date

      3. In the "Remarks" field, notate as follows: "The case is on Modernized e-File Return Request Display" .

    4. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute to Exam" .

    AUR – Open Case
    1. Take the following action

      1. Print the return to pdf.

      2. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      3. Complete Form 12305

      4. Send the Form 12305 and the return to the appropriate fax number found in the AUR Addresses (Open Cases) list on SERP.

      5. Input a case note per IRM 3.11.6.8.4, MEFP and MEFS Secure Messaging and E-fax Routing.

      6. Input a TC 971 AC 015

      7. Close the CIS case.

    AUR – Reconsideration
    1. Take the following action

      1. Print the return to pdf.

      2. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      3. Complete Form 12305

      4. Send the Form 12305 and the return to the appropriate fax number found in the AUR Reconsideration list on SERP.

      5. Input a case note per IRM 3.11.6.8.4, MEFP and MEFS Secure Messaging and E-fax Routing.

      6. Input a TC 971 AC 015

      7. Close the CIS case.

    Reroute
    • CI/SDC

    • COLLECTIONS

    • ERS

    • FRIVOLOUS

    • RIVO

    • Any other area not listed.

    Exception:

    Some of the areas listed above my accept secure message or e-fax routing. See IRM 3.11.6.8.4, MEFP and MEFS Secure Messaging and E-fax Routing

    1. Complete the "Routing Slip Data" as follows:

      1. Complete the "To Stop # " field per the specific IRM subsection.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.

      4. Complete the "Comments:" field, "The case is on Modernized e-File Return Request Display" . Add required working trail/action trail information.

        Example:

        If sending to AUR, the comments would be: "The case is on Modernized e-File Return Request Display. TC 922 process code 55" .


        Note: Some of these fields may populate by default.

    2. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" .

  7. To send a MEFP case to Statute per IRM 3.11.6.6.5, Statute Review, take the following actions:

    1. Select "2Statute" from the "Suspend" drop-down list.

    2. Click the tax increase/credit decrease check box, if appropriate.

    3. Complete the ASED field

    Note:

    If Statute determines that they must work the case, they will print a hardcopy for their use and return the case with instructions to close the case.

MEFS Reassignment and Reroute Guide

  1. Follow the instructions below when reassigning or rerouting a MEFS case.

  2. If International routing criteria per IRM 3.11.6.6.12, International Returns, or IRM 3.11.6.6.12.1, International Return Criteria, is also present with one of the routing conditions below, reassign the case based on the additional issue instructions.

    • Carryback

    • Carryforward

    • Disaster Claim per IRM 3.11.6.6.2, Disaster Claims.

    • Identity Theft per IRM 3.11.6.6.4, Identity Theft.

    • Injured Spouse per IRM 3.11.6.6.19, Injured Spouse Allocation (Form 8379).

    • Zero Return per IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.

    Example:

    If a case has both International and Carryback criteria, reassign the case per the Carryback International instructions in paragraph 4 below.

  3. When reassigning a case, do not close the open control base.

  4. Update the case data per IRM 3.11.6.3.7, Updating Case Data, and follow the table below:

    Note:

    Update the required"MFT" , "Work Type" , "Function" , and "Statute Search" fields as appropriate

    Caution:

    If the case data is updated incorrectly, the case will be sent back to you for correction.

    If ... And ... Then ...
    Carryback
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Carryback.

      2. Category RINT.
        Exception: If Form 1045 or Form 1139 is attached, use Category TENT.

    2. Use:

      1. Work Type IMF INTL.

      2. Doc Type Carryback.

      3. Category IRNT.
        Exception: If Form 1045 or Form 1139 is attached, use Category ITCB.

    Carryforward
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Carryforward.

      2. Category CFWD.

    2. Use:

      1. Work Type IMF INTL

      2. Doc Type Carryforward.

      3. Category ICFD.

    CAT-A
    1. The CAT-A issue would normally meet SP criteria.

    2. The CAT-A issue would normally meet SP criteria if the tolerance was not met, and there is also an out of scope issue present on the case.

    3. The CAT-A issue would not normally meet SP criteria.

    4. There is an open AUR case that meets CAT-A Criteria.

    1. Use:

      1. Doc Type 1040X - CATA.

      2. Category CATA.

      3. Suspend to CAT-A

    2. See Out of Scope below.

    3. See Out of Scope below.

    4. See paragraph 6 below.

    Combat Injured Veterans Tax Fairness Act of 2016, St Clair Claims   Use:
    1. Doc Type 1040X Veteran Claim.

    2. Category VRET.

    Disaster Claim
    1. Domestic

    2. International

    1. Use:

      1. Doc Type 1040X.

      2. Category DSTR or KATX per IRM 3.11.6.6.2, Disaster Claims.

    2. Use:

      1. Doc Type 1040X.

      2. Category DSTR or KATX per IRM 3.11.6.6.2, Disaster Claims.

    Form 14039 Non-tax related (English) Use:
    1. Doc Type ID Theft IDT4.

    2. Category IDT4.

    Identity Theft
    1. Domestic - Taxpayer Identified.

    2. Domestic- IRS Identified.

    3. International- Taxpayer Identified.

    4. International- IRS Identified.

    1. Use:

      1. Doc Type ID Theft IDT1.

      2. Category IDT1.

    2. Use:

      1. Doc Type ID Theft IDT3.

      2. Category IDT3.

    3. Use:

      1. Doc Type ID Theft IDT1.

      2. Category IDT1.

    4. Use:

      1. Doc Type ID Theft IDT3.

      2. Category IDT3.

    Injured Spouse
    1. Domestic

    2. International

    1. Use:

      1. Doc Type Injured Spouse Claim.

      2. Category DMFC.\

      3. Program Code 97140

    2. Use:

      1. Doc Type Injured Spouse Claim.

      2. Category DMFC.

      3. Program Code 97140

    International
    1. Carryback

    2. Carryforward

    3. Identity Theft

    4. Injured Spouse

    5. Zero Return

    6. Form 1040-X or Amended Form 1040 not meeting the criteria directly above.

    1. See Carryback above.

    2. See Carryforward above.

    3. See Identity Theft above.

    4. See Injured Spouse above.

    5. See Zero Return below.

    6. Use:

      1. Work Type IMF INTL

      2. Doc Type 1040X.

      3. Category IXRT.

      4. Campus PSC.

      5. Reassign

    IRC 965 IRC 965 is mentioned or Form 965 is attached. Use:
    1. Doc Type IRC 965 1040X.

    2. Category 965X.

    KITA   Use:
    1. Doc Type 1040X.

    2. Category KITA.

    Out of Scope

    Note:

    Also used for CP 27, CP 09, and CP 08.

      Use:
    1. Doc Type 1040X
      Exception: If the Category is ACAX, use Doc Type ACA-1040X

    2. Category XRET or ACAX per IRM 3.11.6.14.10, Category Codes

    Premium Tax Credit   Use:
    1. Doc Type 1040X.

    2. Category ACAX.

    Scrambled SSN cases   Use:
    1. Doc Type 1040X.

    2. Category SCRM.

    TAS   Use:
    1. Doc Type 1040X.

    2. Category XRET.

    VA Claims Veterans Disability Claims   Use:
    1. Doc Type 1040X Veteran Claim.

    2. Category VRET.

    Zero Return- Transcription Error. Tax year 2018 only. See IRM 21.4.1.4.1.2.2(1), Return Found - Processing Errors Identified.
    1. Domestic

    2. International

    1. Use:

      1. Doc Type 1040X

      2. Category SPC5

    2. Use:

      1. Doc Type 1040X

      2. Category SPC5

  5. When reassigning a case, use the appropriate CSR queue number from the AM Site Specialization Temporary Holding Numbers list on the SERP that correlates to the Doc Type and Category from paragraph 3 above.

    Note:

    When reassigning a case to TAS, CAT-A, Premium Tax Credit use the Out of Scope Paper CSR queue number.

    Exception:

    When reassigning a case to the International queue, select "PSC" in "Campus" field when updating the case data.

    Exception:

    When reassigning an open case to AM, use the CSR number in the" ASSIGN-TO" field of the open control. If the case is open to a generic AM queue, reassign the case to the Out of Scope (All Other Claims) queue.

  6. When Rerouting a case, follow the table below:

    If ... Then ...
    Reroute EITC Follow IRM 3.11.6.12.6, Command Code DDBCK (Dependent Database Check).
    Reroute Exam
    1. Complete the "Exam Referral Data" section as follows:

      1. Complete the "To Stop # " field per IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing.
        Note: If the SBC is not all zeroes, input the address in the Comments field. If there is not a stop number available, input N/A in the To Stop # field.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.
        Note: Some of these fields may populate by default.

    2. Complete the "Action" section as follows:

      1. Check the "Tax Decrease has NOT Been Made" check box.

      2. Check the "TC971-013" check box.

      3. Input a TC 971 AC 013 per IRM 3.11.6.6.10.2, Exam/-L Freeze Claim Processing.

    3. Complete the "Reason Referred" section as follows:

      1. Check the "Open AIMS" check box.

      2. Use CC AMDISA to complete the following:

        • EGC field.

        • Source Code field.

        • Status Code field.

        • Date field using the Current Status Code Date

    4. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute to Exam" .

    AUR – Open Cases

    Caution:

    If the return is in the "Attached Files" section and not in the "Document Images" section of the CIS case, follow the MEFP reroute instructions in IRM 3.11.6.8.1 , MEFP Reassignment and Reroute Guide.

    1. Take the following action

      1. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      2. Input a TC 971 AC 015

    2. Complete the "Routing Slip Data" as follows:

      1. Complete the "To Stop # " field per the AUR Addresses (Open Cases) list on SERP.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.


      Note: Some of these fields may populate by default.

    3. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" .

    AUR – Reconsideration Cases

    Caution:

    If the return is in the "Attached Files" section and not in the "Document Images" section of the CIS case, follow the MEFP reroute instructions in IRM 3.11.6.8.1, MEFP Reassignment and Reroute Guide.

    1. Take the following action

      1. Edit any required working trail information. Refer to IRM 3.11.6.2.5, Working Trail.

      2. Input a TC 971 AC 015

    2. Complete the "Routing Slip Data" as follows:

      1. Complete the "To Stop #" field per the AUR Reconsideration list on SERP.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.


      Note: Some of these fields may populate by default.

    3. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" .

    Reroute
    • CI/SDC

    • COLLECTIONS

    • ERS

    • FRIVOLOUS

    • RIVO

    • Any other area not listed.

    Exception:

    Some of the areas listed above my accept secure message or e-fax routing. See IRM 3.11.6.8.4, MEFP and MEFS Secure Messaging and E-fax Routing

    1. Complete the "Routing Slip Data" as follows:

      1. Complete the "To Stop #" field per the specific IRM subsection.

      2. Complete the "From Stop #" field.

      3. Complete the "Phone #" field.


      Note: Some of these fields may populate by default.

    2. Select the appropriate campus from the "Print" drop-down menu and then click "Reroute" .

  7. To send a MEFS case to Statute per IRM 3.11.6.6.5, Statute Review, take the following actions:

    1. Select "2Statute" from the "Suspend" drop-down list.

    2. Click the tax increase/credit decrease check box, if appropriate.

    3. Complete the ASED field

    Note:

    If Statute determines that they must work the case, they will print a hardcopy for their use and return the case with instructions to close the case.

MEFP and MEFS Accounts Management Rejected Queue

  1. Reassigned cases that do not have a valid "AM CIS combination" will be rejected by Accounts Management (AM) back to Submission Processing (SP) for correction. These rejected cases will be sent by AM to the SP Reject queue, 0623804109.

    Note:

    You must notify the headquarter 1040-X analyst immediately upon learning the current SP Reject queue owner will no longer hold a position with SP 1040-X duties. When notifying the headquarter analyst, a new queue number must be provided to ensure that cases can be transferred without interruption.

  2. The 1040-X quality review (QR) manager or other designated person(s) at each site will review the SP Reject queue daily. The cases must be cleared out of the rejected queue by 9:00 am local time.

  3. When a rejected case from your site is discovered:

    1. Input a case message stating "Rejected by AM for invalid AM CIS combination."

    2. Reassign the case to the tax examiner to take corrective action.

MEFP and MEFS Secure Messaging and E-fax Routing

  1. SP 1040-X will use secure messaging and e-fax routing when directed by the specific IRM subsection.

    Note:

    This subsection is not all-inclusive and may change frequently.

  2. Current areas accepting secure message routing from SP 1040-X are:

    • OFE

    • TAS

    • SP 1040-X

    Note:

    When routing via secure messaging to SP 1040-X complete a Form 12305 and attach it to the case. In the Remarks section of Form 12305 list the CIS Case ID number and how many pages.

  3. Current areas accepting e-fax routing from SP 1040-X are:

    • AUR

    • CAF

    • CI-SDC

    • Collection Functions
      – CSCO
      – ACS
      – OIC
      – Field Collections
      – ASFR and NFR

    • Statute

    • SP 1040-X

    Note:

    If there is a problem with an e-fax number, refer the case to your lead or manager. The lead or manager will utilize the Discovery Directory to resolve the issue.

  4. When routing via secure messaging or e-fax, a case note must be in CIS stating what was sent, the method used, the destination, and the date.

    Example:

    Form 9465 sent via e-fax to CSCO on 01/02/202X.

    Exception:

    If routing to OFE, input a case message and not a case note.

  5. To send a case to your site’s secure mailbox use the following:

    • ≡ ≡ ≡ ≡

    • ≡ ≡ ≡

    • ≡ ≡ ≡

  6. The mailbox owners or other designated personnel such as clerical staff, will monitor their respective site mailbox throughout the day. They will print the documents and send them to the destination indicated on the attached Form 12305.

Correspondence Procedures

  1. Use the following guidance for correspondence unless otherwise directed with a specific instruction.

    • Follow local procedures for sending correspondence to the taxpayer

    • Correspondence must be professional (i.e., correct spelling, punctuation, and grammar)

    • When a toll-free phone number is required use 0922

    • Do not correspond when you can "dummy" the form or schedule from the information attached or through IDRS research

    • Do not correspond when the change is the result of a ripple effect and the forms or schedules needed to support the change are missing

    • Input a TC 971 AC 270 only when the entire claim is being returned to the taxpayer

    • When sending correspondence on an e-filed amended return, print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

  2. When sending C-letter correspondence, use the appropriate Correspondex Signature Code and Correspondex Return Address Code.

    If ... Then ...
    Sending a C-letter as certified or registered mail Use the signature code for you site’s Submission Processing (SP) field director
    • Austin - Correspondex Signature Codes

    • Kansas City - Correspondex Signature Codes.

    • Ogden - Correspondex Signature Codes

    Exception:

    Surge teams will need to use the SP field director signature code that matches the site to which you are assigned as found in the Fresno Correspondence Signature Code list.

    Not sending a C-letter as certified or registered mail Use the signature code for you site’s operations manager
    • Austin - Correspondex Signature Codes

    • Kansas City - Correspondex Signature Codes.

    • Ogden - Correspondex Signature Codes

    Exception:

    Surge teams will need to use the operations manager signature code that matches the site to which you are assigned as found in the Fresno Correspondence Signature Codes list.

    Your site requires a return address code Use the appropriate code for your site
    • Austin - Return Address Codes

    • Kansas City - Return Address Codes

    • Ogden - Return Address Codes

    Exception:

    Surge teams will need to use the return address code that matches the site to which you are assigned as found in the Fresno Correspondence Return Address Codes list.

    Your site does not require a return address code Then leave the field blank

  3. Correspondence for missing information takes priority over all other correspondence conditions unless otherwise specified.

  4. When multiple correspondence issues are met, see IRM 3.11.6.9.10, Multiple Correspondence Issues.

  5. Not all correspondence scenarios are covered by the IRM. See your lead if clarification is needed.

  6. If correspondence has been issued on a claim with CAT-A criteria or an Exam case and an incomplete response has been received, forward the claim to CAT-A or Exam, as appropriate. See IRM 3.11.6.6.10, Examination.

  7. All correspondence issues need to be identified prior to initiating correspondence to ensure all items are requested at the same time.

    Note:

    Ignore dollar limit tolerances once correspondence has been initiated.

    Example:

    Correspondence is initiated because Form 1040-X is missing a Schedule EIC but there is also an unexplained entry on line 7 of $400. Correspond addressing both issues.

  8. In general, correspondence is issued on:

    1. Form 8009-A or Letter 178C for net result refund or zero-balance on Form 1040-X. Form 1040-X . See IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C).

    2. Letter 324C for net result balance due on Form 1040-X, APO/FPO/DPO, and Disaster claims. See IRM 3.11.6.9.2 Corresponding on Net Balance Due Returns (Letter 324C).

      Exception:

      Form 8009-A/Letter 178C, can be sent to an APO/FPO/DPO address when there is no attachment and no reply is expected.

    3. Letter 105C or Letter 105SP for fully disallowed claims. See IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter.

    4. Letter 106C or Letter 106SP for partially disallowed claims. See IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter.

    5. Letter 474C or Letter 474SP for correcting a claim and general correspondence. See IRM 3.11.6.9.5, Correspondence for Correcting a Claim (Letter 474C and 474SP).

    6. Letter 916C or Letter 916SP for “No Considering” a claim. See IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

    7. Other letters as specified.

    Note:

    Check the CC MESSG "Correspondence News" page for updates to applicable C-Letters and SP-Letters.

  9. Prior to issuing any correspondence, CC ENMOD must be reviewed to determine the LEP indicator. If the LEP indicator is blank, CC INOLES must be reviewed. When reviewing CC INOLES if the MFR code is 07, correspondence must be sent in Spanish, if available. See IRM 3.11.6.9.1, Spanish Correspondence.

  10. Follow the instructions below when the address on the Form 1040-X does not match IDRS.

    If ... And ... Then ...
    Corresponding using Form 8009-A
    1. An address change can be made per IRM 3.11.6.11.1, Entity Changes.

    2. An address change cannot be made per IRM 3.11.6.11.1, Entity Changes.

    1. Correspond using the address on the Form 1040-X. Do not update IDRS (CC ENMOD) until reply is received.

    2. Correspond using the address of record on IDRS.

    Corresponding using a C letter
    1. An address change can be made per IRM 3.11.6.11.1, Entity Changes.

    2. An address change cannot be made for reasons other than missing signature

    3. An address change cannot be made due to a missing signature

    1. Correspond using the address on the Form 1040-X. See IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C).

    2. Correspond using the address of record on IDRS. See IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C).

    3. Correspond using the address of record on IDRS and suspend the return.

  11. If a taxpayer is incarcerated, the taxpayer’s "prisoner number" must be included on the second name line of any correspondence being issued, if present. Do not update IDRS to add the prisoner number.

Spanish Correspondence

  1. If a letter requires an open paragraph fill in, the letter is to be considered as not available in Spanish.

  2. CC ENMOD must be reviewed to determine the LEP indicator.

    If the LEP indicator is ... And ... Then ...
    001   Send correspondence is Spanish.
    Blank The MFR code is 07 on CC INOLES Send correspondence is Spanish.

  3. If corresponding on a married filing joint return, the LEP and MFR indicators must be checked for both the primary and secondary taxpayer. In some instances, two letters will need to be sent, one in English and one in Spanish, because each taxpayer can file a Schedule LEP to designate their language preference.

  4. Currently, the following SP 1040-X correspondence letters are available in Spanish.

    Correspondence Letter Spanish Version Available
    Form 8009-A Not available (N/A)
    Letter 105C Letter 105SP
    Letter 106C Letter 106SP
    Letter 178C N/A
    Letter 282C Letter 282SP
    Letter 324C N/A
    Letter 369C N/A
    Letter 404C N/A
    Letter 418C N/A
    Letter 474C Letter 474SP
    Letter 916C Letter 916SP
    Letter 3050C Letter 3050SP

  5. When sending correspondence in Spanish:

    1. The same C-letter paragraphs are to be used.

    2. Use "Formulario 1040-X" instead of "Form 1040-X."

    3. Enter the date in DD-month-YYYY format.

      Example:

      If required to send a Letter 105SP, paragraph A, should read:
      Gracias por su Formulario 1040-X del 04 de mayo de 2022.

  6. Use the table below for converting months Spanish.

    If ... Then ...
    January enero
    February febrero
    March marzo
    April abril
    May mayo
    June junio
    July julio
    August agosto
    September septiembre
    October octubre
    November noviembre
    December diciembre

Corresponding on Net Balance Due Returns (Letter 324C)

  1. When an amended return reflects an overall balance due that is missing required forms, schedules, signature(s), or other necessary information, request the missing information using a Letter 324C, Amended (Numbered) Return Incomplete for Processing, and suspend the return following the table below:

    If ... Then ...
    Working an e-filed return or CIS case
    • Send Letter 324C

    • Input the CIS Case Id in fill-in box 7

    • Use the paragraphs from the specific subsection

    • Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

    • Leave a CIS Case Note, describing the items requested

    • Suspend the CIS case for 45 days from today’s date. If paragraph 2 below applies, do not suspend

    Worked a paper filed return
    • Send Letter 324C

    • Use the paragraphs from the specific subsection

    • Suspend the case for 45 days from today’s date. If paragraph 2 below applies, do not suspend

  2. If the only correspondence issue on a balance due or zero-balance return is a missing signature, issue a Letter 324C at the same time you input your adjustment. When the taxpayer responds, associate the information with the adjustment document.

  3. For an e-filed amended return or CIS case, follow the table below to process a reply to a Letter 324C received within the 45-day suspense period:

    If ... Then ...
    All the requested information is supplied
    • Retrieve the suspense case from the CIS suspense Queue

    • Use the earliest received date from the return as the received date

    • Use the received date from the taxpayer’s reply as the amended claims date

    • Use CIS Indicator "1"

    • Use Source Document Indicator "N"

    • Input the appropriate remarks

    It is determined that correspondence was unnecessary, and all issues can be determined.
    • Retrieve the suspense case from the CIS suspense Queue

    • Use the received date from the return as the received date

    • Use the received date from the return as the amended claims date

    • Use CIS Indicator "1"

    • Use Source Document Indicator "N"

    • Input the appropriate remarks

    The taxpayer does not supply all the requested information and the return is still incomplete.
    • Retrieve the suspense case from the CIS suspense Queue

    • Input only the issues that can be determined per normal procedures

    • Use CIS Indicator "1"

    • Use Source Document Indicator "N"

    • Input the appropriate remarks

    • Send a Letter 474C, per IRM 3.11.6.5, Master File Verification and Math Verification, and IRM 3.11.6.13.1, Inputting a Corrected Adjustment

    • Use fill-in: You did not provide (insert a description of the missing information).

  4. For a paper filed amended return, follow the table below to process a reply to a Letter 324C received within the 45-day suspense period:

    If ... Then ...
    All the requested information is supplied
    • Use the earliest received date from the return as the received date

    • Use the received date from the taxpayer’s reply as the amended claims date

    • Use CIS Indicator "0"

    • Use Source Document Indicator "Y"

    • Input the appropriate remarks

    It is determined that correspondence was unnecessary, and all issues can be determined.
    • Use the received date from the return as the received date

    • Use the received date from the return as the amended claims date

    • Use CIS Indicator "0"

    • Use Source Document Indicator "Y"

    • Input the appropriate remarks

    The taxpayer does not supply all the requested information and the return is still incomplete.
    • Input only the issues that can be determined per normal procedures

    • Use CIS Indicator "0"

    • Use Source Document Indicator "Y"

    • Input the appropriate remarks

    • Send a Letter 474C, per IRM 3.11.6.5, Master File Verification and Math Verification, and IRM 3.11.6.13.1, Inputting a Corrected Adjustment

    • Use fill-in: You did not provide (insert a description of the missing information).

  5. If no reply is received, after the 45-day suspense period:

    If ... Then ...
    There are issues that can be determined on the return Send a Letter 474C per IRM 3.11.6.13.1, Inputting a Corrected Adjustment, and use fill-in: You did not provide (insert a description of the missing information).

    Note:

    Do not allow any credits if part of the correspondence was for a missing signature.

    All issues on return can be determined Process the return using the original received date as the received date and the amended claims date.
    None of the issue on the return can be determined Send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

  6. Use the table below if a reply is received after the amended return is closed per either paragraph 3, 4, or 5 above:

    If ... And ... Then ...
    Working an e-filed return or CIS case
    1. The Letter 324C was not sent by SP 1040-X

    2. The Letter 324C was sent by SP 1040-X

    1. Route to CIS/AM

    2. Process as normal.

      • Retrieve the original case from CIS and link it to the late reply case

      • Use the received date from the reply as the received date

      • Use the received date from the reply as the amended claims date

      • Use CIS Indicator "1"

      • Use Source Document Indicator "N"

      • Add "324C LATE REPLY" to the remarks

    Worked a paper filed return
    1. The adjustment is unclear

    2. The adjustment can be clearly determined

    1. Route to CIS/AM

    2. Process as normal.

      • Use the received date from the reply as the received date

      • Use the received date from the reply as the amended claims date

      • Use CIS Indicator "0"

      • Use Source Document Indicator "Y"

      • Add "324C LATE REPLY" to the remarks

Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C)

  1. When an amended return reflects a net overall refund or zero-balance and is missing required forms, schedules, signature(s), or other necessary information, correspond using one of the following letters:

    If ... Then ...
    Working a CIS case. Use Letter 178C.
    Working a paper filed return. Use Form 8009-A.

  2. If the amended return is reporting additional income and is missing required forms, schedules, and documentation, send Letter 324C per IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C).

  3. If the only issue on a zero-balance return is a missing signature, send Letter 324C per IRM 3.11.6.9.2, Corresponding on Net Balance Due Returns (Letter 324C), to request the signature and process the adjustment at the same time. When the taxpayer responds, associate the information with the adjustment document.

  4. If a signature is missing on an APO/FPO/DPO or a Disaster Claim, correspond using a Letter 324C. Do not mail back the return regardless if it is a refund or zero tax change return. Suspend the return until you secure a signature only on refund returns. Use fill-in: You did not provide [insert a description of the missing information].

Letter 178C, Amended (Unnumbered) Return Incomplete for Processing
  1. When sending Letter 178C:

    1. Input the CIS Case Id in fill-in box 7

    2. Use paragraphs: A, 5, n

    3. Use the open paragraph to request the missing information

    4. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page."

    5. Leave a CIS Case Note describing the items requested

    6. Input a TC 290 for .00. Use Hold code 1 if the module is in a credit balance

      Caution:

      If there’s not a TC 150 present on the account, do not input a TC 290 for .00.

    7. Close the CIS case

  2. When the taxpayer responds with all the requested information:

    1. Create a new case

    2. Process the claim

    3. Use the received date of the reply as the received date and amended claims date

    4. Link the case to the original amended return

  3. If the taxpayer responds with required forms and/or documents and does not address items within tolerance, continue processing the return.

    Reminder:

    Do not use the original received date. Use the received date of the reply as the received date and amended claims date.

  4. If the taxpayer’s reply on a refund return is incomplete or unprocessable:

    1. Adjust the account for only the issues that are processable and send the Letter 474C per IRM 3.11.6.13.1, Inputting a Corrected Adjustment. Use fill-in: You did not provide [insert a description of the missing information].

    2. If no issues are processable, send a Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

    3. If the correspondence involves PATH issues, see IRM 3.11.6.12.1, Protecting Americans from Tax Hikes (PATH Act).

  5. When it is determined that the correspondence was sent by the IRS in error:

    If ... Then ...
    The return can be processed for some of the issues, process the return for only those issues
    • Send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP). Use fill-in: We could not process a portion of your claim because the requested information was not submitted or it was unclear what adjustment was being requested. You did not provide [insert a description of the missing information].

    • When inputting the return on IDRS, use the earliest received date as the received date and amended claims date.

    All issues can be determined Process the return using the earliest received date as the received date and amended claims date.
    None of the issues can be determined Send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

Form 8009-A, We Need More Information to Process Your Amended Return or CP Notice
  1. When sending Form 8009-A:

    1. Close the case to MISC

    2. Input TC 971 AC 270 and use the current date in the TRANS-DT field when sending the entire claim back to the taxpayer.

      Reminder:

      Do not input a TC 971 AC 270 when corresponding on CP notices.

    3. Edit your employee number in the top left corner of the amended return.

    4. Edit a brief action trail to show the items requested and current date in the top left margin of the amended return.

    5. Circle out the received date. For a missing received date, see IRM 3.11.6.3.3, Received Date.

    6. On Form 8009-A, enter the current date in the "Date" field

    7. Enter the name of the taxpayer(s) and the address in the gray box on Form 8009-A.

    8. Use the drop-down box to select the appropriate return address.

    9. Check the appropriate box for "Form 1040-X" or "CP Notice."
      • Use boxes 1 through 7 as needed to request the missing information on an amended return.
      • Use box 8 and check the appropriate box for the notice number, form number, and reason for correspondence.

    10. Circle "over" when using page 2 of Form 8009-A.

    11. Attach Form 8009-A to the amended return or CP Notice and mail back to the taxpayer per local procedures.

  2. When the taxpayer responds with all the requested information:

    1. Process the claim.

    2. Use the received date of the reply as the received date and amended claims date.

  3. If the taxpayer responds with required forms and/or documents and does not address items within tolerance, continue processing the return.

    Reminder:

    Do not use the original received date. Use the received date of the reply as the received date and amended claims date.

  4. If the taxpayer’s reply on a refund return is incomplete or unprocessable:

    1. Adjust the account for only the issues that are processable and send the Letter 474C per IRM 3.11.6.13.1, Inputting a Corrected Adjustment. Use fill-in: You did not provide [insert a description of the missing information].

    2. If no issues are processable, send a Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

    3. If the correspondence involves PATH issues, see IRM 3.11.6.12.1, Protecting Americans from Tax Hikes (PATH Act).

  5. When it is determined that the correspondence was sent by the IRS in error:

    If ... Then ...
    The return can be processed for some of the issues, process the return for only those issues
    • Send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP). Use fill-in: We could not process a portion of your claim because the requested information was not submitted or it was unclear what adjustment was being requested. You did not provide [insert a description of the missing information].

    • When inputting the return on IDRS, use the earliest received date as the received date and amended claims date.

    All issues can be determined Process the return using the earliest received date as the received date and amended claims date.
    None of the issues can be determined Send Letter 916C per IRM 3.11.6.9.6, Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP).

Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP)

  1. Taxpayers are sent disallowance letters for fully disallowed or partially disallowed claims:

    • Letter 105C is used for fully disallowed claims

    • Letter 106C is used for partially disallowed claims

    • Letters must be sent certified or registered mail

    • Letters must contain the specific reason for the claim disallowance as well as the claim amount

    • Letters must include appeal rights and the right to file suit

  2. If an amended return is received that has previously been disallowed, route to CIS/AM. A previous disallowance can be determined by:

    • Reviewing the Blocking Series of the previous adjustment. See IRM 3.11.6.14.6, Blocking Series (BS).

    • Researching CC ENMOD for an indication that a Letter 105C or Letter 106C has been sent.

  3. If the signature is missing on a full or partial disallowance, correspond per IRM 3.11.6.9.3, Corresponding on Net Refund and Zero-Balance Returns (Form 8009-A and Letter 178C). If sending Form 8009-A, use boxes 1 and 7 with fill-in: You cannot claim (what is being disallowed) because (reason for disallowance).

    Reminder:

    If processing a Statute case, see IRM 3.11.6.6.5.1, Processing Statute Cases.

  4. For an e-filed amended return or CIS case, follow the table below when sending a Letter 105C:

    If ... Then ...
    The disallowance is for PATH Act
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 98 if the original return was paper filed.

        • 99 If the original return was e-filed.

      2. Input a TC 290 for .00.

      3. Use Source Code 0

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "1"

      6. Use Source Document Indicator "N"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 105C

      2. Input the CIS Case Id in the box 15 fill-in.

      3. Use paragraphs: A, M, d, g, r, v.

      4. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

      5. Leave a CIS Case Note describing the issue.

    The disallowance is for all other claims
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 98 if the original return was paper filed.

        • 99 If the original return was e-filed.

      2. Input a TC 290 for .00.

      3. Use Source Code 0

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "1"

      6. Use Source Document Indicator "N"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 105C

      2. Input the CIS Case Id in the box 15 fill-in.

      3. Use paragraphs:

        • From the specific IRM subsection.

        • If specific paragraphs are not provided use: A, C, D, d, g, r, v. If two open paragraphs are needed use A, C, D, *, d, g, r, v.

      4. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

      5. Leave a CIS Case Note describing the issue.

  5. For a paper filed amended return, follow the table below when sending a Letter 105C:

    If ... Then ...
    The disallowance is for PATH Act
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 98 if the original return was paper filed.

        • 99 If the original return was e-filed.

      2. Input a TC 290 for .00.

      3. Use Source Code 0

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "0"

      6. Use Source Document Indicator "Y"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 105C

      2. Use paragraphs: A, M, d, g, r, v.

    The disallowance is for all other claims
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 98 if the original return was paper filed.

        • 99 If the original return was e-filed.

      2. Input a TC 290 for .00.

      3. Use Source Code 0

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "0"

      6. Use Source Document Indicator "Y"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 105C

      2. Use paragraphs:

        • From the specific IRM subsection.

        • If specific paragraphs are not provided use: A, C, D, d, g, r, v. If two open paragraphs are needed use A, C, D, *, d, g, r, v.

  6. For an e-filed amended return or CIS case, follow the table below when sending a Letter 106C:

    If ... Then ...
    The disallowance is for PATH Act
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 18 if the original return was paper filed.

        • 00 If the original return was e-filed.

      2. Input a TC 29X for the corrected total tax.

      3. Use Source Code 1

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "1"

      6. Use Source Document Indicator "N"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 106C

      2. Input the CIS Case Id in the box 6 fill-in.

      3. Use paragraphs: A, N, O, Y, 2

      4. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

      5. Leave a CIS Case Note describing the issue.

    The disallowance is for all other claims
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 18 if the original return was paper filed.

        • 00 If the original return was e-filed.

      2. Input a TC 29X for the corrected total tax.

      3. Use Source Code 1

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "1"

      6. Use Source Document Indicator "N"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 106C

      2. Input the CIS Case Id in the box 6 fill-in.

      3. Use paragraphs:

        • From the specific IRM subsection.

        • If specific paragraphs are not provided use: A, D, O, Y, 2. If two open paragraphs are needed use A, D, *, O, Y, 2

      4. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

      5. Leave a CIS Case Note describing the issue.

    Note:

    When sending Letter 106C the:

    • "Amount of Claim" is the total the taxpayer is expecting.

    • "We only allowed" amount is the result of the adjustment.

  7. For a paper filed case, follow the table below when sending a Letter 106C:

    If ... Then ...
    The disallowance is for PATH Act
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 18 if the original return was paper filed.

        • 00 If the original return was e-filed.

      2. Input a TC 29X for the corrected total tax.

      3. Use Source Code 1

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "0"

      6. Use Source Document Indicator "Y"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 106C

      2. Use paragraphs: A, N, O, Y, 2

    The disallowance is for all other claims
    1. Input the adjustment as follows:

      1. Use Blocking Series:

        • 18 if the original return was paper filed.

        • 00 If the original return was e-filed.

      2. Input a TC 29X for the corrected total tax.

      3. Use Source Code 1

      4. Use the applicable Reason Code(s).

      5. Use CIS Indicator "0"

      6. Use Source Document Indicator "Y"

      7. Input the appropriate remarks

    2. Correspond as follows:

      1. Send a Letter 106C

      2. Use paragraphs:

        • From the specific IRM subsection.

        • If specific paragraphs are not provided use: A, D, O, Y, 2. If two open paragraphs are needed use A, D, *, O, Y, 2

    Note:

    When sending Letter 106C the:

    • "Amount of Claim" is the total the taxpayer is expecting.

    • "We only allowed" amount is the result of the adjustment.

  8. When the partial disallowance of a claim results in a balance due or zero-balance, send a Letter 105C as outlined in paragraph 4 or 5 above. Input the adjustment following Letter 106C adjustment procedures outlined in paragraph 6 or 7 above.

Correspondence for Correcting a Claim (Letter 474C and 474SP)

  1. The Letter 474C is used to correct a claim and general correspondence as instructed.

  2. A Letter 474C is used in the following:

    • For a corrected adjustment, see IRM 3.11.6.13.1, Inputting a Corrected Adjustment.

    • When a taxpayer claims a credit they already received, see IRM 3.11.6.13.1, Inputting a Corrected Adjustment.

    • CP 08, CP 09, or CP 27 correspondence.

    • When specific instructions are provided.

    Note:

    Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page."

  3. When sending Letter 474C, use paragraph C for the opening and paragraph e for the closing. They will be used in conjunction with other paragraphs as stated in the IRM.

  4. Open paragraphs "1," "8," and "*" are available for use with the Letter 474C.

  5. Input the CIS Case Id in the box 7 fill-in.

Correspondence for No Consideration of a Claim (Letter 916C and Letter 916SP)

  1. A Letter 916C informs the taxpayer we cannot process their claim and they must file a new claim with the requested information.

  2. For statute year returns, see IRM 3.11.6.6.5.1, Processing Statute Cases.

  3. When an e-filed return or CIS case requires a Letter 916C, follow the table below:

    If ... Then ...
    The entire claim is being no considered
    1. Input the adjustment as follows:

      1. Input a TC 290 for .00

      2. Use the applicable Reason Code(s)

      3. Use CIS Indicator "1"

      4. Use Source Document Indicator "N"

      5. Input the appropriate remarks

    2. Send Letter 916C as follows:

      1. Input the CIS Case Id in the box 12 fill-in.

      2. Use paragraphs: B, F, S, 2, 5

      3. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page"

      4. Leave a CIS Case Note describing the issue.

    There are allowable issues
    1. Input the adjustment as follows:

      1. Input a TC 29X for the appropriate amount.

      2. Use the applicable Reason Code(s)

      3. Use CIS Indicator "1"

      4. Use Source Document Indicator "N"

      5. Input the appropriate remarks

    2. Send Letter 916C as follows:

      1. Input the CIS Case Id in the box 12 fill-in.

      2. Use paragraphs: B, F, S, 2, 5

      3. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page" .

      4. Leave a CIS Case Note describing the issue.

    Note:

    Use fill-in: You did not provide [insert a description of the missing information]. When resubmitting your claim, please include Form 1040-X, Amended U.S. Individual Income Tax Return, in addition to your supporting documentation.

  4. When a paper filed return requires a Letter 916C, follow the table below:

    If ... Then ...
    The entire claim is being no considered
    1. Input the adjustment as follows:

      1. Input a TC 290 for .00

      2. Use the applicable Reason Code(s)

      3. Use CIS Indicator "0"

      4. Use Source Document Indicator "Y"

      5. Input the appropriate remarks

    2. Send Letter 916C as follows:

      1. Use paragraphs: B, F, S, 2, 5

    There are allowable issues
    1. Input the adjustment as follows:

      1. Input a TC 29X for the appropriate amount.

      2. Use the applicable Reason Code(s)

      3. Use CIS Indicator "0"

      4. Use Source Document Indicator "Y"

      5. Input the appropriate remarks

    2. Send Letter 916C as follows:

      1. Use paragraphs: B, F, S, 2, 5

    Note:

    Use fill-in: You did not provide [insert a description of the missing information]. When resubmitting your claim, please include Form 1040-X, Amended U.S. Individual Income Tax Return, in addition to your supporting documentation.

  5. If a reply to the Letter 916C is received and the taxpayer still has not submitted the requested information, then follow the table below:

    If ... Then ...
    A reply is received for an e-filed return or CIS case
    1. Input a TC 290 for .00

    2. Use the applicable Reason Code(s)

    3. Use CIS Indicator "1"

    4. Use Source Document Indicator "N"

    5. Input the appropriate remarks

    A reply is received for a paper filed return
    1. Input a TC 290 for .00

    2. Use the applicable Reason Code(s)

    3. Use CIS Indicator "0"

    4. Use Source Document Indicator "Y"

    5. Input the appropriate remarks

  6. If a response to a Letter 916C is received with no amended return attached, follow the table below:

    If the response is to ... And ... Then ...
    An e-filed return or CIS case
    1. The Letter 916C was not sent by SP 1040-X

    2. The Letter 916C was sent by SP 1040-X

    1. Route to CIS/AM

    2. Process the case as follows:

      1. Retrieve the case from CIS and link it to the new case

      2. Use the received date of the reply as the received date

      3. Use the received date of the reply as the amended claims date

      4. Input a TC 29X for the appropriate amount.

      5. Use the applicable Reason Code(s)

      6. Use CIS Indicator "1"

      7. Use Source Document Indicator "N"

      8. Add "916C REPLY " to the remarks

    Exception:

    For Statute cases, follow IRM 3.11.6.6.5.1, Processing Statute Cases.

    A paper filed return   Route to CIS/AM

Correspondence for Estimated Tax Penalty (Letter 369C)

  1. When instructed to send Letter 369C per IRM 3.11.6.13.4.2.1, Estimated Tax Penalty, take the following action:

    • Use paragraphs A, U, and 1

    • For paragraph U, use the fill in: If you qualify for one of the exceptions in Part II of Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, you may be able to reduce your penalty. Complete and submit Form 2210 according to the instructions.

    • For paragraph 1, use 0922.

    • If working a MEFP or MEFS case, input the CIS Case ID in the box 7 fill-in.

Correspondence for Excess Social Security and Railroad Retirement Tax (Letter 404C)

  1. When instructed to send Letter 404C per IRM 3.11.6.13.4.1.1, Excess Social Security and Railroad Retirement Tax Act (RRTA), follow the table.

    If the reason for correspondence is ... Then ...
    Excess Social Security was withheld by only one employer and there is one W-2
    1. Input a TC 290 .00. If additional issues are present, continue to process for the remaining issues.

    2. Send Letter 404C using paragraphs A, C, D, E, and M. For fill in M, use 8374.

    The taxpayer is MFJ and used earnings / Social Security from both the primary and secondary taxpayers to calculate excess Social Security
    1. Input a TC 290 .00. If additional issues are present, continue to process for the remaining issues.

    2. Send Letter 404C using paragraphs A, C, F, and M. For fill in M, use 8374.

  2. If working a MEFP or MEFS case, input the CIS Case ID in the box 7 fill-in.

Correspondence for Dependent Documentation (Letter 3050C and Letter 3050SP)

  1. When instructed to send Letter 3050C per IRM 3.11.6.12, Personal Exemption or Dependent Changes:

    • Use paragraphs A, C, 9, and b

      Note:

      You must use any of the following paragraphs that apply.
      – D (Dependents)
      – E (Exemptions
      – F (The Earned Income Tax Credit)
      – G (The Child Tax Credit)
      – H (The Additional Child Tax Credit)
      – I (The Credit for Other Dependents)

    • For paragraph b, use 0922.

    • If working a MEFP or MEFS case, input the CIS Case ID in the box 7 fill-in.

Multiple Correspondence Issues

  1. Correspond for missing information before addressing any other correspondence issues, unless otherwise specified. If there are identifiable issues on the return that will cause a disallowance, no consideration, or a corrected adjustment once the response is received, include appropriate narrative fill-in from other “C” letters that addresses the issue(s) with the Letter 324C, Form 8009-A, or Letter 178C .

    Reminder:

    Do not follow the instructions below until all correspondence for missing information is complete, see IRM 3.11.6.9, Correspondence Procedures.

  2. If the return is processable and multiple correspondence conditions exist, the fill-ins and/or paragraphs must be combined from the specific instructions. Use open paragraph(s) when needed.

    • If one of the issues is a formal disallowance, send the Letter 106C letter and use the open paragraph "D." If an additional open paragraph is needed, use an * and insert after paragraph "D" .

    • When a Letter 105C or Letter 106C, formal disallowance letter, is required and other issues on the return require a math error to be set, send both the Letter 105C or Letter 106C and the Letter 474C. See (3) below.

    • In all other instances, send the Letter 474C using the open paragraphs to address all issues.

      Exception:

      The Letter 369C, Letter 404C, Letter 3050C and Form 8009-A used to return original documents, cannot be combined. They must be used in addition to any other letter.

  3. When an amended return requires both a formal disallowance and a math error, two letters and two adjustments are required:

    1. The first adjustment will address the math error and any other issue(s) that may be present. Send a Letter 474C per IRM 3.11.6.13.1, Inputting a Corrected Adjustment, and address all issues not related to the disallowance. Use the additional fill-in: You should have received a separate notice that part of your claim was disallowed.

    2. The second adjustment will address the disallowance issue. Send a Letter 106C per IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter 106SP).

Undelivered Correspondence

  1. When undelivered correspondence is received follow the table.

    If ... Then ...
    Related to a CIS case See IRM 3.11.6.9.14, MEFP and MEFS Correspondence Replies, then follow the instructions below.
    Related to a paper case Follow the instructions below.

  2. Research IDRS for a better address, the return envelope/packet, or use the yellow address change sticker provided by the U.S. Postal Service on the envelope. Compare the address on the yellow sticker to the name and address using CC ENMOD to verify it is the same taxpayer.

    Reminder:

    When an undelivered mail piece has an affixed USPS yellow label, see IRM 3.11.6.11.1, Entity Changes.

  3. When a new address is found, input a new letter using the new address; do not update the address in IDRS. If an adjustment related to the undelivered correspondence is on the module, use Form 9856 to route the correspondence to Files. For Letter 105C/Letter 106C undelivered correspondence, see the following paragraph.

    Note:

    If the case is in suspense, close then reopen the suspended case to allow the taxpayer 45 days to respond from the date of your newly issued letter.

  4. For a Letter 105C or Letter 106C, Disallowance Letter, do not reinput the letter.

    If ... Then ...
    A CIS case Print the entire (original) letter, including the returned envelope, unchanged and send to the new address in another envelope per local procedures.
    Working a paper case Send the entire original letter, including the returned envelope, unchanged to the new address in another envelope.

  5. When a correct address is found for Form 8009-A correspondence with the original enclosed, input a subsequent TC 971 AC 270.

  6. When working a undeliverable on a MEFP or MEFS case and a new address is not found:

    If ... Then ...
    The return was determined to be processable Process the case as normal using the original received date as the amended claims date.
    The return is a zero-balance return Adjust the account per the return using the earliest received date (that has not been circled out).
    Correspondence was a Letter 178C or a Letter 324C requesting missing information
    • Input a case note stating "Letter (178C/324C) dated (MM-DD-YYYY) returned undelivered. No new address found."

    • Input a TC 290 for $.00 when associating items with electronically filed returns.

    • Close the CIS Case

    • Destroy the letter as classified waste per local procedures.

    Correspondence was a Letter 916C for missing information
    • Input a case note stating "Letter 916C dated (MM-DD-YYYY) returned undelivered. No new address found."

    • Input a TC 290 for $.00 when associating items with electronically filed returns.

    • Close the CIS Case

    • Destroy the letter as classified waste per local procedures.

    Correspondence was a Letter 916C no consideration, a Letter 474C, or a Letter 4364C
    • Input a case note stating "Letter (916C/474C/4364C) dated (MM-DD-YYYY) returned undelivered. No new address found."

    • Input a TC 290 for $.00 when associating items with electronically filed returns.

    • Close the CIS Case

    • Destroy the letter as classified waste per local procedures.

    The correspondence was a formal disallowance or contained appeal rights
    • Input a case note stating "Letter (105C/106C) dated (MM-DD-YYYY) returned undelivered. No new address found."

    • Input a TC 290 for $.00 when associating items with electronically filed returns.

    • Close the CIS Case

    • Destroy the letter as classified waste per local procedures.

    Correspondence was for informational purposes (such as Direct Deposit) Destroy the letter as classified waste per local procedures.

  7. When working an undeliverable on a paper case and a new address is not found:

    If ... Then ...
    The return was determined to be processable Process the Form 1040-X as normal using the original received date as the amended claims date.
    The return is a zero-balance return Adjust the account per the return using the earliest received date (that has not been circled out).
    Correspondence was a Form 8009-A or a Letter 324C requesting missing information File the information using TC 290 .00 no RC and BS 05.
    Correspondence was a Letter 916C with the original 1040-X attached or was generated for missing information Input a TC 290 .00 with no RC.
    Correspondence was a Letter 916C, a Letter 474C, or a Letter 4364C Use Form 9856 to route the correspondence to Files based on the DLN of the TC 29X which corresponds to the return. See IRM 3.11.249.3.2.1, Document Locator Number (DLN) for detailed information regarding DLNs.
    The correspondence was a formal disallowance or contained appeal rights Use Form 9856 to route the correspondence to Files based on the DLN of the TC 29X which corresponds to the return. If a TC 29X is not present, then input the TC 290 .00 using IRM 3.11.6.9.4, Correspondence for Disallowing a Claim (Letter 105C, Letter 105SP, Letter 106C, and Letter. See IRM 3.11.249.3.2.1, Document Locator Number (DLN) for detailed information regarding DLNs.
    Correspondence was for informational purposes (such as Direct Deposit) Destroy as classified waste per local procedures.

  8. If the Form 1040-X is returned undelivered and a TC 150 is still not posted on the account, research for a new address and follow the table:

    If ... Then ...
    A new address is found Send the Form 1040-X with Form 8009-A back to the taxpayer.
    A new address is not found and there are payments on the module Refer to CIS/AM.
    A new address is not found and there are no payments on the module Treat as Classified Waste.
    Disaster is indicated on Form 1040-X Route to CIS/AM following local procedures.

  9. If an undeliverable return is identified as being an ID Theft return, then route to Entity. See IRM 3.11.6.6.4, Identity Theft.

  10. For undelivered CP 08, CP 09, and CP 27 notices, destroy as classified waste per local procedures.

Illegible Amended Return (Letter 418C)

  1. Occasionally, an amended return will be received that is illegible. In this instance, correspondence is needed to request another amended return.

    If ... Then ...
    Working an MEFS case
    1. Send Letter 418C, Amended/Original Return Unavailable; Copy Requested.

      1. Input the CIS Case Id in fill-in box 7.

      2. Use paragraphs A, I, and 0.

        • Paragraph A fill-ins are:
          "amended return"
          "we received on"
          enter the received date of the amended return

        • Paragraph I fill-ins are both "amended" .

        • Paragraph 0 fill-in is "0922" .

    2. Print the C-Letter to PDF and attach it to the case with the "Attach File" button on the "Active Case Page" .

    3. Leave a CIS Case Note, stating "Amended return was illegible requesting another amended return."

    4. Select Monitor from the suspense drop down menu and suspend the case for 45 days from today’s date.

    Working a paper case
    1. Send Letter 418C, Amended/Original Return Unavailable; Copy Requested.

      1. Use paragraphs A, I, and 0.

        • Paragraph A fill-ins are:
          "amended return"
          "we received on"
          enter the received date of the amended return

        • Paragraph I fill-ins are both "amended" .

        • Paragraph 0 fill-in is "0922" .

    2. Change the case activity to "418C-SNT" and suspend the case for 45 days from today’s date.

  2. If no reply to Letter 418C, Amended/Original Return Unavailable; Copy Requested, is received, suspend the case for an additional 90 days. Change the case activity to "418C-90DAYS" .

  3. If after the 90 day suspense period a reply has still not been received, close the case with a TC 290 for .00.

Unable to Locate Amended Return Procedures (Letter 282C and Letter 282SP)

  1. If an original amended return cannot be located:

    1. If the return was forwarded to AM, then route the reply to CIS/AM.

    2. If the return was not forwarded to AM, then proceed as follows:

      If ... And ... Then ...
      A recent adjustment has been input (after your C-letter date) that includes the forms/schedules received The suspense period is open or expired Use the TC 290 DLN when completing Form 9856 to associate the correspondence and route to Files. See IRM 3.11.249.3.2.1, Document Locator Number (DLN) for detailed information regarding DLNs.
      A recent adjustment has been input that does not include the schedules received with the correspondence or you are unable to determine if the complete adjustment was input The suspense period is open or expired Route CIS/AM.
      No adjustment has been input
      1. The suspense period has expired

      2. The suspense period is open

      3. There is an open SP case to the local generic queue and the return can’t be located

      1. Route CIS/AM.

      2. Leave the case in suspense and send Letter 282C using paragraphs A, B, E, M, Y, 3, 7 with fill-in: You will need to file another Form 1040-X, Amended U.S. Individual Income Tax Return, and attach copies of any schedules or documents included with your original Form 1040-X. Sign and date the return, if you filed jointly then your spouse must also sign.

      3. Close the case to "MISC" and send Letter 282C using paragraphs A, B, E, M, Y, 3, 7 with fill-in: You will need to file another Form 1040-X, Amended U.S. Individual Income Tax Return, and attach copies of any schedules or documents included with your original Form 1040-X. Sign and date the return, if you filed jointly then your spouse must also sign.

MEFP and MEFS Correspondence

  1. When MEFP and MEFS correspondence is received, it must be sent to the Image Control Team (ICT) to be scanned into CIS.

    • If the original MEFP or MEFS Case is closed, a new CIS Case will be created with the reply using Category Code IRRQ.

      Note:

      When working an IRRQ reply, the case must be linked to original CIS case.

    • If the original MEFP or MEFS case is still open, the reply must be associated to the open CIS Case per paragraph 2 below.

      Note:

      When working a reply that is associated to a case, the reply will appear in the image section of the open case.

  2. Route all MEFP and MEFS correspondence to ICT to be scanned through the exception scanning process per local procedures.

    If correspondence is received on a ... Then ...
    Closed case The clerical staff or tax examiner will prepare a CIS Association Header Sheet.
    • TIN - Use the P-TIN which can be found on IDRS

    • Name Control - Use the Primary name control from the letter, form(s), schedule(s), or other document(s)

    • MFT - Always use "30"

    • Tax Period - Use the tax period indicated on the letter, form(s), schedule(s), or other document(s)

    • Case ID - Use the CIS Case ID indicated on the letter, or the form(s), schedule(s), or other document(s) if present

    • Employee # - Use the tax examiner’s IDRS employee number from the letter

    Open case The clerical staff or tax examiner will prepare a CIS Association Header Sheet and input a case note stating what type of correspondence is being sent for association to the case.

    Example:

    If a Letter 324C reply is received on MM-DD-YYYY, the case note would be:
    324C reply received MM-DD-YYYY sent to ICT for case association.

    • TIN - Use the P-TIN which can be found on IDRS

    • Name Control - Use the Primary name control from the letter, form(s), schedule(s), or other document(s)

    • MFT - Always use "30"

    • Tax Period - Use the tax period indicated on the letter, form(s), schedule(s), or other document(s)

    • Case ID - Use the CIS Case ID indicated on the letter, or the form(s), schedule(s), or other document(s) if present

    • Employee # - Use the tax examiner’s IDRS employee number from the letter

Associating Forms, Schedules, and Other Documents to MEFP and MEFS Cases

  1. Occasionally, when working a MEFP or MEFS case, tax examiners will need to send a form(s), schedule(s), and other document(s) to be associated with the case they are working. The CIS case association process must be completed prior to the MEFP or MEFS case being reassigned, rerouted, or closed.

  2. The tax examiner will prepare the CIS Association Header Sheet and input a case note stating what a form(s), schedule(s), or other document(s) are being sent for association to the case.

    • TIN - Use the P-TIN.

    • Name Control - Use the primary name control.

    • MFT - Use "30"

    • Tax Period - Use the tax period of the case.

    • Case ID - Use the CIS Case ID of the case being worked.

    • Employee # - Use your IDRS employee number.

  3. Route to ICT for association through the exception scanning process per local procedures.

Correspondence Table of Issues, C-Letters and Paragraph Fill-ins

  1. This section contains the most common correspondence issues and is referred to throughout the IRM. When working a:

    • MEFP and MEFS case, refer to IRM 3.11.6.10.1, MEFP and MEFS Case Correspondence Table of Issues.

    • Paper case, refer to IRM 3.11.6.10.1, Paper Case Correspondence Table of Issues.

    Reminder:

    Not all correspondence scenarios are covered by the IRM. See your lead if clarification is needed.

MEFP and MEFS Case Correspondence Table of Issues

  1. The following table is a guide in corresponding with the taxpayer on Entity issues, it is not all-inclusive.

    If ... And ... Letter 324C Letter 178C
    1. Tax Period is missing You cannot determine the correct tax period through IDRS research and attachments   Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Please submit another Form 1040-X being sure to provide the tax period. If amending more than one tax year, you must file a separate return for each year.
    2. The taxpayer tries to submit an amended return for multiple tax periods on a single amended return     Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Please submit another Form 1040-X being sure to provide the tax period. If amending more than one tax year, you must file a separate return for each year.
    3. Primary TIN and/or Secondary TIN cannot be determined ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN Paragraphs: A, E, 6 Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Your Social Security number or your spouse’s Social Security number is missing or does not show nine digits. Please submit another Form 1040-X with the correct number(s).
    4. TP is changing to FS 2 (MFJ) and the Secondary TIN cannot be determined ALL attempts have been made (e.g., reviewed attachments, IDRS research, etc.) to secure the TIN Paragraphs: A, E, 6 Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Your Social Security number or your spouse’s Social Security number is missing or does not show nine digits. Please submit another Form 1040-X with the correct number(s).
    5. The TP is changing to FS 4 (HOH)
    • The TP is claiming a qualifying non-dependent and the name of the QND is not provided.

    • Removing all dependents claimed and does not change to FS 1 (Single) or provide the name of the QND.

    Paragraphs: A, F, G, 6 Paragraphs: A, 5, n using fill-in: We are unable to correct your account with the information you supplied on your Form 1040-X, Amended U.S. Individual Income Tax Return. The name of the person who qualifies you as Head of Household was missing. Please submit another Form 1040-X with the name of the person that qualifies you as Head of Household.
    6. The dependent name and/or TIN is missing, or TIN and/or name does not match CC INOLE, or TIN cannot be determined through IDRS research
    • The taxpayer has not indicated a religious (e.g., “Amish,” “Mennonite,” or “Form 4029”) or conscience-based objection to obtaining a taxpayer identification number (TIN), and

    • The dependent is not stated to be deceased or, if deceased, was born before the tax year

    Paragraphs: A, T, and 6 Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you supplied on your Form 1040-X, Amended U.S. Individual Income Tax Return. The name and/or taxpayer identification number of the person who you claimed as a dependent on Form 1040X, Part I, Page 2 is either missing, incomplete, or doesn't match our records. Please submit another Form 1040-X with the corrected information.
    7. One or more ITIN(s) is Inactive
    1. The entire return is unprocessable because of an increase to a credit that is based on an inactive ITIN

    2. Some issues are processable and the allowable adjustment changes the taxpayer’s expected refund/balance due

     
    1. Paragraphs: A, 5, and n using fill-in: We are unable to process your Form 1040-X, Amended U.S. Individual Income Tax Return. Please submit a completed Form W-7 application with supporting document(s) to renew the inactive/expired individual taxpayer identification number (ITIN) listed on your return.

    2. Paragraphs: A, 5, and n using fill-in: We are unable to process your Form 1040-X, Amended U.S. Individual Income Tax Return as submitted. There were one or more inactive individual taxpayer identification number (ITIN), that caused a change to your return. Please submit a completed Form W-7 application with supporting document(s) to renew the inactive/expired individual taxpayer identification number (ITIN) listed on your return.

  2. The following table is a guide in corresponding with the taxpayer for missing Forms and Schedules, it is not all-inclusive.

    If ... And ... Letter 324C Letter 178C
    1. The amount shown on a supporting form or schedule differs from the amount shown on the Form 1040-X ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Paragraphs A, 3, and 6 using fill-in: We are unable to correct your account as requested. The information provided on [insert Form or Schedule number] does not support the entry made on your Form 1040-X, Amended U.S. Individual Income Tax Return. Please provide clarification and correct any documentation necessary to support your claim. Paragraphs A, 5, and n using fill-in: We are unable to correct your account with the information you supplied on your Form 1040-X, Amended U.S. Individual Income Tax Return. The information provided on [insert Form or Schedule number, Title] does not support the entry made on your Form 1040-X. Please submit another Form 1040-X with any documentation necessary to support your claim.
    2. Schedule A, Itemized Deductions, is missing The TP is changing from a standard deduction to itemized deduction or TP is increasing deductions on an existing Schedule A and does not explain the type of deduction and the change is not the result of a ripple effect Paragraphs: A, 3, 6 fill-in: Please complete a Schedule A, Itemized Deductions, to support the changes you have made on your Form 1040-X, Amended U.S. Individual Income Tax Return. Complete Form 2106, Employee Business Expenses, if necessary. Use paragraphs A, 5, and n with fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Schedule A, Itemized Deductions, to support your claim was missing. Please submit another Form 1040-X with Schedule A.
    3. Schedule EIC, Earned Income Credit, is missing The change is not the result of a ripple effect Paragraphs: A, 3, 6 fill-in: Please complete Schedule EIC, Earned Income Credit, to support the changes you have made on your Form 1040-X, Amended U.S. Individual Income Tax Return. Use paragraphs A, 5, and n with fill-in: We are unable to correct your account with the information you provided on your Form 1040-X, Amended U.S. Individual Income Tax Return. Schedule EIC, Earned Income C