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

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

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

The Operations Manager is responsible for monitoring operational performance.

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

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

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

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:

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.

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

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.

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

Acronyms commonly used include the following:

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

Websites and electronic tools used to process adjustments include:

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.

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.

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.

The IAT tools used are:

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.

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

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

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

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

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

The SUM:

The BSUM:

The manager:

The lead:

The tax examiner processes cases assigned to them by the:

The clerk:

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.

Batch work that has the same IRS received date together.

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.

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.

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.

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.

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.

Amended return suspense time frames are as follows:

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

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.

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.

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.

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.

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.

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.

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

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.

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

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

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

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.

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.

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.

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.

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.

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

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

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

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

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

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.

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.

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

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.

Process amended returns as follows:

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

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.

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

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

Figure 3.11.6-1

Open XRET Control Base Matching The Open CIS CASEThe XRET control base matches the open CIS case. When reviewing the scan location, it is determined the case is the same.

Please click here for the text description of the image.

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

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

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

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

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.

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.

On MEFS cases follow the table below.

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

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.

Use the following websites when processing amended returns:

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

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.

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

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.

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.

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.

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.

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.

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.

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.

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).

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:

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

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.

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).

Refer as CIS/AM, if:

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).

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

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.

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.

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

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

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.

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.

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).

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.

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).

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.

All accepted e-filed returns have a valid signature.

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

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).

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

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.

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.

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

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:

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

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.

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

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

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

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

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

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.

When a remittance is discovered:

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.

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

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

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

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

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.

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)."

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

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.

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

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

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.

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

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.

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."

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

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.

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.

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

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

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

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

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

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.

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

Claims routed to another function may be returned for processing.

Determine if the return requires:

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

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

A duplicate condition occurs when:

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:

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.

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.

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.

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.

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.

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:

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.

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:

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

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

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

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:

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

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

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.

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.

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.

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.

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 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 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.

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.

Unused general business credits and other credits.

An individual taxpayer can carryback section 1256 contract(s) losses three years but can only apply them to section 1256 contract(s) gains.

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).

Indications that a taxpayer is trying to take a carryback are:

Indications that a taxpayer is trying to take a carryforward are:

Do not treat the following claims as CB/CF claims:

Identity Theft (IDT) can be indicated by the taxpayer’s explanation, by markers on the account, or by suspicious changes identified by tax examiners.

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.

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.

A taxpayer can self-identify as a victim of IDT by:

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:

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:

Once a return is identified as being an IDT return:

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.

For statute imminent cases (the ASED is 90 days or less), hand carry to Statute per local procedures.

MEFP cases and MEFS cases are sent to the Statute unit by using the suspense function within CIS.

Paper cases are sent to the Statute unit by routing the case.

Follow the procedures in the table below to suspend a MEFP case or MEFS case to the Statute unit:

Follow the procedures in the table below to send a paper case to the Statute unit:

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).

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:

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.

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.

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:

Do not send original returns or amended returns to TAS.

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" .

When working paper cases, follow local procedures when the table above requires the creation of a CIS case or a case be scanned.

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:

When processing a paper filed case and the taxpayer requests to be referred to TAS or the taxpayer meets the above criteria:

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.

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.

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.

The FRP Coordinator will review any return which the taxpayer:

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

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.

Send claims meeting SDC criteria to your local SDC:

Use the following table to determine if CI SDC will want to see the following amended returns:

Claims returned from the CI SDC may have a stamp indicating they have been reviewed.

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.

Use the following chart to determine if RIVO will want to see the following amended returns: