- 4.13.2 Contact Employees
- 188.8.131.52 Research/Initial Case Screening
- 184.108.40.206 Function Responsible & Routing Instructions
- 220.127.116.11 Role of Contact Employees when a Reconsideration Request is Received and the Examination was Performed in the Area Office or Campus Examination Function
- 18.104.22.168 Reconsideration Calls Received in Exam Operation
Part 4. Examining Process
Chapter 13. Audit Reconsideration
Section 2. Contact Employees
December 16, 2015
(1) This transmits a revised IRM 4.13.2 Audit Reconsideration, Contact Employees.
This section contains information on procedures and administrative matters relative to Audit reconsideration.
(1) IRM 22.214.171.124 Research/Initial Case Screening- , Added Sentence to para (1)(d), and corrected IRM reference in NOTE, para (1)
(2) IRM 126.96.36.199.1 Criteria Met, Minor grammar change
(3) IRM 188.8.131.52.2 Criteria Not Met, Added sentence to para (1)(c) and (1)(e) and updated IRM reference in para (1)(g)
(4) IRM 184.108.40.206.2(1)(c) Revise the paragraph and add new content.
(5) IRM 220.127.116.11 Function Responsible & Routing Instructions, Revised routing instructions in para (1) and (2) and added note after para (2). Updated procedures in para (3)(d) and (e) and added new (3)(f). Updated Appeals phone number in para (6)(b) and updated procedures in table in (6)(d). Added Note to end of (6)(d).
(6) IRM 18.104.22.168 Role of Contact Employees when a Reconsideration Request is Received and the Examination was Performed in the Area Office or Campus Examination Function, Deleted references to exhibits, updated Note in para (1)(a) and added clarifying content
(7) IRM 22.214.171.124.1 Adoption Credit and American Opportunity Credit, Deleted First Time Homebuyer Credit content and replaced with Adoption Credit and American Opportunity Credit content.
(8) IRM 126.96.36.199 Reconsideration Calls Received in Exam Operation, Updated procedures in para (2). Added new paragraph procedure to end of para (5)
(9) )IPU 13U1279 issued 07-25-2013 IRM 188.8.131.52.1 - Modified section to include multiple assessments and an IF Then table.
(10) IPU 13U1234 issued 07-12-2013 IRM 184.108.40.206.2 - Deleted specific alpha paragraph reference and replace with as applicable
(11) IPU 13U0582 issued 03-21-2013 IRM 220.127.116.11(5) - Clarification in the AUR routing instructions
(12) IPU 13U0408 issued 02-22-2013 IRM 18.104.22.168(2) - Change in Philadelphia's address
(13) IPU 12U1927 issued 12-11-2012 IRM 22.214.171.124(3) Delete 2nd paragraph
(14) IPU 12U1700 issued 10-09-2012 IRM 126.96.36.199 - Change in Operation and routing address for Exam SFR Reconsiderations.
(15) IPU 101379 issued 09-30-2010 IRM 188.8.131.52.1 - Delete paragraphs 2 through 6 and the note.
(16) IPU 101379 issued 09-30-2010 IRM 184.108.40.206(3) add new paragraph
(17) IPU 101379 issued 09-30-2010 IRM 220.127.116.11 - Various editorial changes
(18) IPU 101241 issued 08-24-2010 RM 18.104.22.168(4) (a), (b), and (c) Revise routing procedures for EITC reconsiderations.
(19) IPU 101202 issued 08-17-2010 IRM 22.214.171.124.1(1) add link to Exhibit 4.13.7–27.
(20) IPU 101144 issued 08-02-2010 IRM 126.96.36.199.1 (3) (4) and (5) various changes.
(21) IPU 101144 issued 08-02-2010 IRM 188.8.131.52(3) - editorial changes
(22) IPU 101122 issued 07-27-2010 IRM 184.108.40.206 Function Responsible and Routing Instructions - Renumbered and revised paragraphs, and add new content.
(23) IPU 100481 issued 03-25-2010 IRM 220.127.116.11 - Add new subsection for First Time Homebuyer Procedures.
(24) IPU 100481 issued 03-25-2010 IRM 18.104.22.168(1)(a) Delete second and third sentence and add new content.
(25) IPU 100430 issued 03-18-2010 22.214.171.124 (3)(d) - Function Responsible & Routing Instructions - Revise the 4th, 5th and 6th sentences and add 7th sentence.
(26) IPU 100430 issued 03-18-2010 126.96.36.199.1(1) Routing instructions for Multiple Year Reconsideration Requests - revise the 5th sentence.
Scott E Irick
This chapter discusses the role of contact employees. Contact employees (Customer Service Walk-In and Toll-Free call sites, Examination, Accounts Management, etc.) who receive inquiries from taxpayers regarding disagreement with additional tax assessments and/or reversal of tax credits such as Earned Income Tax Credit (EITC), will be responsible for responding to requests.
Wage and Investment (W&I) Examination Telephone Assistors are not considered contact employees. See IRM 188.8.131.52, Reconsideration Calls Received in Exam Operation, for procedures applicable to telephone assistors.
Use the following criteria to screen requests:
The Taxpayer has filed an individual income tax return, and the examination has been completed and assessed, and
The taxpayer has a copy of the report or knows what issues he/she is contesting, and
The taxpayer does not agree with the assessment and/or reversal of tax credits, such as EITC, and
The taxpayer has new additional information that was not previously considered, that would change the assessment/tax credit reversal. Additional information can include taxpayer explanation or testimony that was not previously documented and considered, as well as additional source documents that were not previously considered, and
The assessment remains unpaid or as a result of the examination the tax credit(s) are reversed.
If all of the above apply, See IRM 184.108.40.206, Function Responsible and Routing Instructions, to identify the function responsible for originating the assessment.
Cases not meeting the above criteria should be processed as follows:
If a return has not been filed by the taxpayer, advise taxpayer to send a complete, signed tax return. Inform taxpayer that the filing of a return is a requirement for reconsideration.
If the taxpayer does not know what issues he/she are contesting and he/she states they do not have or did not receive copy of the examination report, print a copy from Correspondence Examination Automation Support (CEAS)/Report Generation Software (RGS) (including Forms 886) and mail to the taxpayer. Include Publication 3598. If the case was not archived on CEAS/RGS or access to CEAS is not available, request a copy of the Examination Report and Publication 3598 be sent to the taxpayer from the Returns and Income Verification System (RAIVS) unit via Form 4442/4442C, see IRM 220.127.116.11.4 , Copies of Audit Reports. Advise the taxpayer to follow procedures in Publication 3598 in requesting reconsideration. Inform the taxpayer to include a home, cell or work phone number and a convenient time to call with his/her correspondence for the most efficient customer service.
If the account is full paid and there have not been any credits reversed; the request is a claim for refund. Inform the taxpayer that he/she must follow claim procedures. Letter 89C may be used for this purpose. Include Form 1040X and instructions as an enclosure. Along with the Letter 89C and Form 1040X, return any documentation the taxpayer had attached to his/her correspondence.
If the case is currently open in Exam, and there is no assessment posted to the taxpayer’s account, advise the taxpayer to correspond with the office that has the open Exam. If the taxpayer provides correspondence, date stamp and forward the correspondence to the open control/office.
If the taxpayer does not have any new additional information to support his/her position, which was not previously considered during the examination. New information can include taxpayer testimony and explanation that was not previously documented and considered, as well as additional source documents that were not previously considered. If there is no new information criteria for reconsideration is not met.
If the taxpayer states he/she does not know what information can be submitted, issue Letter 3338C. Select the applicable paragraph to include Form 12661, Disputed Issue Verification as an enclosure for the disputed issues and input the return address of the appropriate Exam CRU determined by referring to IRM 4.13.7-2, Routing of Campus Reconsideration Requests, IRM 4.13.7-3, Routing of Area Office Reconsideration Requests, and IRM 4.13.7-4, Central Reconsideration Unit (CRU) Addresses.
If correspondence is received and the disputed issues cannot be identified, send Letter 3338C. Select the applicable paragraph to include Form 12661, Disputed Issue Verification as an enclosure. Input return addresses code of CRU determined by referring to IRM 4.13.7-2, Routing of Campus Reconsideration Requests, IRM 4.13.7-3, Routing of Area Office Reconsideration Requests, and IRM 4.13.7-4, Central Reconsideration Unit (CRU) Addresses.
If a loose Form 8862 is received from an Accounts Management employee, return the correspondence to the originating stop number. Accounts Management is responsible for issuing the Letter 3338C to the taxpayer.
AUTOMATED SUBSTITUTE FOR RETURN (ASFR)
To determine if the return or correspondence received is an ASFR Reconsideration, research Integrated Data Retrieval System (IDRS) for the following transaction code(s) (TC). All must be present if the response is an ASFR Reconsideration.
TC Dummy 150
TC599 Closing Code (CC) 88
Route ASFR reconsideration returns based on the Document Locator Number (DLN) of the TC 150.
See IRM 4.13.7, Exhibits 1 for ASFR addresses in link Who/Where - ASFR - Reconsideration Returns - Centralized Processing Sites.
Small Business/Self-Employed (SB/SE) EXAM SUBSTITUTE FOR RETURN (SFR)
All SB/SE Exam SFR and Frivolous Return Program (FRP) SFR Reconsiderations are worked in the Examination Operation at the Brookhaven Campus.
See SB/SE campus mailing addresses listed below.
SB/SE SFR Examinations are identified by the following IDRS transaction codes:
TC 150 .00 with SFR literal and 888 julian date
TC 300 with File Location Codes (FLC) 17, 19, 28, 29, and 49
Primary Business Codes (PBC) 295, 296, 297, 298, 299 and 201 through 207. The PBC is located to the right of TC 420
FRP SFR Reconsiderations are identified by the following IDRS transaction codes:
TC 150 .00 with SFR literal and 888 julian date
TC 300 with (FLC) 29
Primary Business Codes (PBC) 298.
Project Codes 0311, 0312, and 0313. The Project Code can be found directly above or to the right of TC 420.
Route SB/SE SFR and FRP SFR Reconsiderations to:
Internal Revenue Service
Examination Operation Stop 614
1040 Waverly Avenue
Holtsville, NY 11742
A TC 300 and a TC 420 indicates a previous audit was performed by Campus or Area Office (AO) Exam.
A TC 300 adjustment could be reflected on a case that was worked in Automated Underreporter (AUR). If a TC 922 and TC 520 precede the TC 300, this indicates an AUR case where the taxpayer petitioned Tax Court. Route these cases to Appeals for reconsideration, unless there is an indication that the assessment was due to a dismissal from Tax Court for Lack of Jurisdiction (LOJ).
If the ASFR case was assessed by a TC 300 and appellate code of 2XX, route to Appeals, unless there is an indication that the assessment was due to a dismissal from Tax Court for Lack of Jurisdiction (LOJ)
If campus exam (TC 420 and Employee Group Code (EGC) 5XXX) conducted the original examination - Campus exam reconsiderations can be identified by a TC 300 with an amount or a TC 300 for zero with an adjustment to a refundable credit, such as the earned income credit (TC 765). The DLN of TC 420 and PBC identify SBSE Campus exam reconsiderations.
W&I Campus exam reconsiderations, including SFR, are worked in any W&I campus, with the exception of PC 1032 (The Third Party Affidavit). PC 1032 are routed to the campus that performed the examination based on the TC 420 DLN and PBC. If the receiving campus does not work the exam program, the campus that performed the examination based on the DLN of TC 420 and PBC should address the reconsideration.
SBSE Campus reconsiderations are worked in the campus that conducted the original audit, and must be routed to that campus. The DLN of the TC 420 and PBC will assist with determining the correct campus.
For a complete list of W&I and SBSE campus locations, please refer to Who/Where - Audit Reconsideration Requests - Central Reconsideration Unit (CRU) Addresses.
Area Office (AO) Examination Reconsiderations
A TC 300 and a TC 420 indicates a previous audit was performed by Campus or Area Office (AO) Exam.
The TC 420 will reflect an EGC of 1XXX or 2XXX and the PBC will range from 201-207. The TC 420 and PBC will be used to determine the campus that services that AO. See IRM 4.13.7-3, Routing of Area Office Reconsideration Requests, to determine the campus that services area offices.
W & I Campuses receiving AO reconsiderations will continue to send them to the SB/SE campus based on back-end mapping.
The SB/SE campus will determine if case is worked at the site or transferred to the Area Office.
See IRM 18.104.22.168, Transfer to Area PSP Office, for instructions to transfer AO Recons.
Area Office PSP examinations are closed in Centralized Case Processing CCP Memphis or CCP Cincinnati. Do not route Audit Reconsiderations to the sites. They are clerical support sites only.
NRP cases, Source Code 80 or 91, Project Code 0674 - return to the originating Examination office. If worked by Cincinnati Campus Exam, return to Cincinnati Campus Exam. All NRP reconsiderations should be established on AIMS and routed back to the Area Office or Campus NRP Coordinator. See 4.13.7-3, Routing of Area Office Reconsideration Requests.
SB/SE EXAM Earned Income Tax Credit (EITC) Reconsiderations
EITC reconsideration requests where the Ogden Campus, PBC 298, conducted the original examination will be worked in the Brookhaven Campus and should be routed to the address shown below:
Internal Revenue Service
1040 Waverly Ave
Holtsville, NY 11742
EITC reconsideration requests received on original examinations conducted in Brookhaven, Memphis, Cincinnati and Philadelphia will be worked in the originating site.
EITC examinations can be identified by the Project Code. Refer to IRM 22.214.171.124, Program Description, for a current list of Project Codes.
TC 290 on the module. This adjustment could reflect a previous reconsideration made by Exam or an adjustment originated by another function such as AUR (usually preceded by TC 922) Collection, or AM.
Z freeze and a prior TC 300 assessment, or a TC 300 for zero with credits removed on module. This indicates a prior questionable refund case (QRP). Route the request to the Examination Campus per the DLN of the TC 300.
The assessment will be a TC 290 preceded by a TC 922. The originating campus may be determined from the address in the upper left corner of the CP 2000 (if available) or from the first two digits of the TC 922 DLN. If the first two digits of the TC 922 DLN are 07, 08, 18 or 89 it is a W&I taxpayer. If the first two digits of the TC 922 DLN are 19, 28 or 29 it is a SB/SE taxpayer. Correspondence requesting a reconsideration will be forwarded to the Campus where the assessment originated. A listing of addresses and contact phone numbers are available on SERP at Who/Where: AUR Reconsideration Request Contact Information.
Route taxpayer phone calls to AUR toll free numbers. The W&I toll free number is 1-800-829-3009 for TC 922 DLN beginning with 07, 08, 18 or 89. The SB/SE toll free number is 1-800-829-8310 for TC 922 DLN beginning with 19, 28 or 29.
The assessment will be a TC 300 preceded by another TC 300 for zero closing the case from Examination to Appeals. Next to the second TC 300 (Appeals assessment) will be a three digit Appeals Office code. (APPL-CD<1XX or 2XX identifying the office that closed the case.
TXMOD will show a three-digit Office code, 1XX (non-docketed cases) or 2XX (docketed cases) when Appeals closes a case. The examiner in CRU must know the Appeals closing code to determine if the case will be forwarded to Appeals or worked in the CRU. The Appeals closing code can be determined by contacting the Appeals Account Resolution Specialist (AARS) in Fresno at (559) 233-1267.
For AUR cases that went to Appeals, the TC 300 (Appeals assessment) with an Appeals office code will be preceded by a TC 922. Forward these cases to Appeals.
For ASFR cases that went to Appeals, there will be a TC 300 (Appeals assessment) with an Appeals Office code. Forward these cases to Appeals.
Forward TC 300 (Appeals assessment) that originated in ASFR to ASFR ONLY when there is an indication that the Appeals assessment was due to dismissal from Tax Court for Lack of Jurisdiction (LOJ).
If the taxpayer requests an Appeals hearing and... The Appeals Closing Code is Description Action 03 Agreed Nondocketed (no Form 906 or From 870-AD) Send to Appeals, if request is based on new information. 03 Agreed Nondocketed (with Form 906 of Form 870-AD) Do not send to Appeals. Deny request for consideration. 04 Agreed Notice of Deficiency Send to Appeals, if request is based on new information. 05 Defaulted Notice of Deficiency Do not send to Appeals. If request is based on new information, work as reconsideration. If Appeals settled, do not reconsider, and issue Letter 916C. 08 Agreed Appeals, Docketed or Dismissed from Tax Court with Appeals time Do not send to Appeals. If dismissed for Lack of Jurisdiction (LOJ), work as an audit reconsideration. If Appeals Settled, issue 916C. 10 Counsel Settled Do not send to Appeals, do not reconsider and issue Letter 916C. 11 Dismissed from Tax Court for Lack of Jurisdiction (LOJ), Appeals issued Notice Do not send to Appeals. If dismissed for LOJ and request is based on new information, work as an audit reconsideration. 12 Dismissed from Tax Court for Lack of Prosecution (LOP), Appeals issued Notice Do not send to Appeals, issue 916C. 17 Tried Tax Court Case Do not send to Appeals, do not reconsider and issue Letter 916C. 18 TEFRA Key Case closed to Department of Justice (DOJ)/Claims Court Do not send to Appeals and do not reconsider. Consider whether to forward information to DOJ or IRS contact, for DOJ/Claims Court. 19 TEFRA Key Case closed to DOJ/District Court or Bankruptcy Do not send to Appeals and do not reconsider. Consider whether to forward information to DOJ or IRS contact for DOJ/Claims Court. 21 Dismissed, Tried, or Counsel Settled with no Appeals time Do not send to Appeals if dismissed for LOP, tried or Counsel settled. If request is based on new information and the case was dismissed for LOJ, work as an audit reconsideration.
Ensure cases are routed to the correct Appeals office as identified by the three digit Appeals Office code. Consult Appeals web page at http://appeals.web.irs.gov/APS/caserouting.htm for case routing addresses. See IRM 4.13.7-5 , Appeals Account Resolution Specialist. When routing cases, be sure to follow the guidelines in IRM 4.13.7-13, Audit Reconsideration of Assessments Made by Appeals Processing Unit.
Letter 916C should not contain language for an appeal if the case was closed with finality as addressed in IRM 126.96.36.199, Non-Acceptance of Request, and IRM 8.7.7, Claim and Overassessment Cases. If a final decision was made by a court, the 916C would not contain language about appeal rights or filing a refund claim. The criteria for not reopening a case closed with a Form 870-AD agreement also applies to other form types with “AD” in the form name. See IRM 188.8.131.52, Agreements Forms Secured in Appeal Cases, for details.
When a reconsideration request is received that contains more than one tax year or more than one TX 30X, it is in the best interest of the taxpayer if we work the case in the same campus. Multiple year requests should not be separated. If a request is received and a prior or subsequent year reconsideration is being worked in your campus, do not route the case. Assign the year(s) received to the examiner who is already working the case. If the audit reconsideration is generated from a program that was centralized , send the request(s) to the campus where the program was worked. See table below for more information.
Field Audits are processed by Centralized Case Processing (CCP) in Memphis and Cincinnati , so always use the TC 420 DLN and codes to determine where the audit took place.
IF Then Multiple Year Reconsiderations Open control Send case to assigned examiner or campus No open control Send case to the campus that performed the earliest audit Multiple Assessments Multiple assessments for same tax year Send case to the campus that input the last adjustment If one account shows TC 30X for .00 and the other shows TC 30X with a dollar amount Send case to the campus with the money amount If both accounts contain TC 30Xs with a dollar amount Send case to the campus that input the last adjustment Recon involves multiple tax years that reflects multiple assessments on one or more tax years Send case(s) to the campus with the earliest TC 300s Exception: If there is an open TAS control on IDRS Do not route the reconsideration request(s) to TAS or elsewhere
If a reconsideration request is generated from a phone call, or walk in and the taxpayer knows what issue is being contested and has not previously received Letter 3338C :
Briefly discuss the issues with the taxpayer. Use any available research tools to obtain information pertaining to the taxpayer's case. Examples of available tools include:
Exam Project Code Search
The Exam Project Code Search is located on the SERP website at http://serp.enterprise.irs.gov/databases/irm-sup.dr/project_code_search_exam.dr/project_code_search_exam.htm This website will usually include a description of the acceptable documentation for each project code that can be used in open paragraphs.
If the contact employee can identify the disputed issues, the employee should complete and send Letter 3338C selecting the appropriate paragraphs that correspond with the disputed issues. If the employee cannot identify the disputed issues, the employee should request that a copy of the Examination Report and Publication 3598 be sent to the taxpayer from the RAIVS unit via Form 4442/4442C.
Advise the taxpayer that you will be sending a letter outlining the specific documentation they will need to include in their response. Advise them to return the information to the Campus Exam Operation address contained in the letter and include his/her home, cell and work phone number, along with the best time to call. To determine the correct campus address see IRM 4.13.7 , Exhibits, Exhibit 2, 3 and 4.
Do not input a collection hold at this time. Advise the taxpayer that collection activity will continue until we receive the requested documentation. If the taxpayer has a hardship situation, follow existing TAS procedures.
If a call is received by a Customer Service Representative (CSR) concerning an audit reconsideration request, and the taxpayer states they previously received a Letter 3338C and it has been 3 weeks or more since they sent in the requested documents, check for an open TXMOD control in the appropriate Campus Exam Operation. If there is not an open TXMOD control, input a STAUP for 3 weeks or a TC 470 (no CC) with a TC 472 (no CC) delayed 3 cycles on the account. Advise the taxpayer that there has not been enough time elapsed for the correspondence they sent in to have been put on our system, and you will be delaying any collection action. They should check back in 2-3 weeks. If 5-6 weeks have passed and there is no open TXMOD control in Exam indicating they have the correspondence, have the taxpayer fax the documents to you. Once the documents are received, complete Form 4442 and fax the Form 4442 and documents to the appropriate Campus Exam Operation. If Form 4442 and documents cannot be faxed, route or mail to the appropriate Campus Exam Operation using the routing Form 1725 or Form 3210 . If the taxpayer states they do not have access to a fax machine to fax in documents, they can mail copies of the documents previously sent directly to the appropriate Campus Exam Operation. See 4.13.7-4 , Central Reconsideration Unit (CRU) Addresses.
If correspondence is received without supporting documentation:
Contact Employees should complete and send Letter 3338C selecting the appropriate paragraphs that correspond with the disputed issues identified by the taxpayer and the paragraph to include Form 12661. If it cannot be determined what issues are being contested, send Letter 3338C, selecting paragraph to include Form 12661 , Disputed Issue Verification. Put in the return address code of the CRU to whom the response should be directed.
If correspondence is received with supporting documentation or the walk-in taxpayer has documentation, check TXMOD/IMFOL for the collection statute (CSED);
If there is less than one year remaining, do not input a collection hold (i.e., STAUP or TC 470).
If the account is in collection status below 22, input a STAUP for 15 cycles.
If the account is in status 22 or 24, input TC 470.
If the collection status is 26, coordinate with the Area Office Collection Revenue Officer.
If the account is in status 60 (Installment Agreement) instruct the taxpayer to continue payments as outlined in the agreement, do not input a collection hold (i.e. STAUP or TC 470).
If the taxpayer has a hardship situation, and you have received an OAR, input the appropriate collection hold. If resolution of this case does not involve a full abatement, the collection hold must be reversed when the case is closed.
Complete Form 4442 and fax along with documentation to the appropriate Campus Exam Operation. If Form 4442 and documents cannot be faxed, route or mail to the appropriate Campus Exam Operation using routing Form 1725 or Form 3210 .
Advise the taxpayer that they can get Pub 3598, What You Should Know About the Audit Reconsideration Process, by accessing the website at http://www.irs.gov or by calling 1-800-Tax-Form (1-800-829-3676).
There are currently no existing paragraphs on 3338C for the Adoption Credit and the American Opportunities Credit.
If Adoption Credit is the disputed issue send 3338C and select enclosure paragraph to include Form 886-H-Adopt-0. The acceptable documentation for this issue is too lengthy for open fill-in paragraphs.
If American Opportunity Credit is the disputed issue, use open fill-in paragraph(s) and insert the following:
AMERICAN OPPORTUNITY TAX CREDIT
Acceptable documentation includes, but is not limited to:
Photocopies of cancelled checks and receipts for tuition and qualified related expenses
Transcripts for all years from educational institutions
Statements for all sources of non-taxable income:
Employer-provided educational assistance benefits
Withdrawals from any educational individual retirement arrangements
U.S. Savings bond interest that is nontaxable because you paid qualified higher education expenses
Veterans’ educational assistance benefits
Any other nontaxable payment received for educational expenses
If a call is received from the taxpayer requesting an audit reconsideration, research account to verify taxpayer meets reconsideration criteria. See IRM 184.108.40.206 , Research/Initial Case Screening.
If taxpayer meets audit reconsideration criteria and CEAS does not show the receipt of new documentation, or the case is not on CEAS, advise the taxpayer to send in a request for reconsideration in writing, including the documentation not previously received and include a copy of their examination report if available. Inform the taxpayer to include his/her home, cell and work phone number, and send the response to the address on the letter/audit report received. Send Letter 3338C with Pub 3598, and Form 12661 to the taxpayer and advise them to follow procedures in the publication on how to file an audit reconsideration request. Advise the taxpayer to fully explain the reason for disagreement with the audit adjustment on Form 12661.
The CEAS Status Codes have been expanded to four digits and identify the actions taken on the audit reconsideration case. Refer to IRM 220.127.116.11.8, Controlling the Case, for Status Code Table and explanations.
If the taxpayer does not know what information is specifically needed; review the CEAS/RGS workpapers, and advise the taxpayer what documentation is needed. If the case is not on CEAS, review the request for documentation (Form 886-H or previously issued Letter 3338C and Letter 3339C with the taxpayer and identify the items the taxpayer has not submitted.
The taxpayer states that they have already sent in everything requested in the Form 886-H or previously issued Letter 3338C, the assistor will review the CEAS Audit Reconsideration workpapers to ascertain if the information previously sent was determined by the examiner, to be complete and correct. If CEAS indicates that more information is needed, advise the taxpayer as to what additional information is needed. If the information previously sent was not sufficient to allow the deduction, advise the taxpayer why the reconsideration request was denied. If the taxpayer does not agree, listen to his/her explanation. Talk with the taxpayer about the possibility of providing alternative documents that might support his/her position. If the taxpayer’s explanation includes information or perspective that was not previously considered and might change the determination or highlights a point in the previously submitted documentation that the examiner may have overlooked, suggest that the taxpayer submit in writing the information he/she is providing on the phone. If all the information the taxpayer has submitted was considered and the reconsideration issue(s) were disallowed, fully explain the reason why. If the taxpayer still does not agree, advise them of their right to appeal the decision and to reply to the letter sent to them notifying them of the partial/full disallowance.
If the case is open on CEAS as Recon and the taxpayer insists on talking to the assigned examiner after a full explanation was provided follow existing phone procedures in IRM 4.19.19 , Campus Examination Telephone Contacts, to send CEAS Action Note.
If the taxpayer is under a 2 or 10 Year Ban (PC 0697 & 0698), and requesting a reconsideration of EITC, inform the taxpayer they are under the 2 or 10 Year Ban and cannot claim EITC until the Ban expires. A recertification indicator of 2 for the "2" Year Ban or " 4" for the 10 Year Ban will show on ENMOD, along with the year on which the Ban originated.
If the taxpayer is contesting the 2 or 10 year ban, advise them to request an audit reconsideration for the year the ban originated, and submit documentation showing their EITC entitlement. Advise W & I taxpayers to forward their reconsideration request and documentation to Austin, and SB/SE taxpayers to forward their reconsideration request and documentation to Brookhaven.