4.19.7 IMF Automated Underreporter (AUR) Technical System Procedures

Manual Transmittal

September 23, 2016

Purpose

(1) This transmits revised IRM 4.19.7, Liability Determination, IMF Automated Underreporter (AUR) Technical System Procedures.

Scope

IRM 4.19.7, effective 09-30-2016, should be used for IMF Automated Underreporter Program.

Material Changes

(1) Made editorial changes throughout the document.

(2) Corrected line numbers for Forms throughout.

(3) IRM 4.19.7.1.2(2) - added Caution that AUR passwords are case sensitive and systemic errors can occur if incorrect characters are used

(4) IRM 4.19.7.1.2(4) - added Note regarding importance of appropriate profile code being assigned

(5) IRM 4.19.7.2(5) - revised to combine verbiage with (6), added information regarding Enterprise Single Sign-on Logon Manager (ESSO-LM), renumbered remainder of subsection

(6) IRM 4.19.7.2(7) - added Note for ESSO-LM

(7) IRM 4.19.7.2(9) - added Note for ESSO-LM

(8) IRM 4.19.7.2(10) - revised to include input of 6 digit PIN

(9) IRM 4.19.7.2.1(5) step 2 - revised to indicate SnagIt Editor

(10) IRM 4.19.7.6.6(1) - revised to include MFT 31

(11) IRM 4.19.7.6.8(2) table - added Statutory Notice and PTC Report

(12) IRM 4.19.7.6.8(4) - added Note for printing from Case history screen

(13) IRM 4.19.7.7(1) - revised to indicate systemically downloaded or built by clerical

(14) IRM 4.19.7.8.5(2) - new for Case Date and Posted Return Information buttons

(15) IRM 4.19.7.8(2) step 4 - added Note for reviewing all information on the information return

(16) IRM 4.19.7.8(2) step 5 - added IRM reference

(17) IRM 4.19.7.8.5(1) d - revised to indicate TC 150, TC 290/291, etc., added an IRM reference

(18) IRM 4.19.7.8.5.1(1) - deleted Payer Agent on File from bullet list

(19) IRM 4.19.7.8.6(1) step 2 - deleted reference to using the left mouse button

(20) IRM 4.19.7.8.7.4(4) - revised to include additional Medicare Tax

(21) IRM 4.19.7.8.11(1) - added Caution that personally identifiable (PII) information should not be included in case or IR notes

(22) IRM 4.19.7.8.11.2(1) step 2 - moved verbiage from step 2 into step 1, renumbered remainder of the step list

(23) IRM 4.19.7.8.11.2(3) - revised to indicate their are 24 standard case notes, revised the verbiage in the table for 15 - 20, added new 21 - 24

(24) IRM 4.19.7.8.11.2(4) - revised to include OUT CALL check box

(25) IRM 4.19.7.8.12.2(6) - added new step 2 to enter the Primary/Secondary Form 8919 tax in the PRI/SEC 8919 INCOME SUBJECT TO SE TAX field; renumbered remaining steps

(26) IRM 4.19.7.8.12.9(2) - corrected window field name for input of Lump Sum Tax

(27) IRM 4.19.7.8.12.9(2) Note - corrected window field names for Lump Sum Tax recomputation

(28) IRM 4.19.7.8.13.1(5) table - added Adoption credits to the Action column for the Credit menu, deleted First time homebuyer and Adoption credit from the Action column for the Payment menu

(29) IRM 4.19.7.8.13.10(3) - added new step 3 for MISC CREDIT AMOUNT field, renumbered remainder of the step list

(30) IRM 4.19.7.8.13.13(3) steps (7) and (8) - revised to indicate enter as a positive amount

(31) IRM 4.19.7.8.13.13(3) step 25- deleted step 25 and renumbered remaining steps

(32) IRM 4.19.7.8.13.15(3) step 4 - revised to include new fields for PREMATURE DIST TAX

(33) IRM 4.19.7.8.13.15(3) step 9 - deleted step 9 and renumbered remaining steps

(34) IRM 4.19.7.8.13.15(3) step 9 - added Caution for TY 2014 and subsequent, to explain new fields titled SIMPLE, ARCHER MSA, HSA, 5%, and NQDC and the need to delete and move amounts from the MISCELLANEOUS TAXES C field to the PER RETURN and/or RECOMPUTED field(s) for SIMPLE, ARCHER MSA, HSA, 5%, and NQDC fields, when appropriate

(35) IRM 4.19.3.7.8.13.18(2) step 2 - revised to indicate Credit menu option

(36) IRM 4.19.3.7.8.13.18(3) - added new step 3 for PRIOR YEAR CARRYFORWARD CREDIT field, renumbered remainder of step list

(37) IRM 4.19.7.8.13.20.1(1) - clarified when the SRP window needs to be accessed for TY 2014

(38) IRM 4.19.7.8.13.20.2(1) - added instruction not to recalculate Premium Tax Credit (PTC) if there is no change to AGI and included window entry instructions; added Caution concerning processing changes to Advanced Premium Tax Credit and Premium Tax Credit (APTC/PTC)

(39) IRM 4.19.7.8.13.20.2(3) - added Note for Form 8962, Part 5

(40) IRM 4.19.7.8.13.20.2(3) step 8 and Caution - clarified instruction to change PTC calculator field amounts

(41) IRM 4.19.7.8.13.20.2(10) - added Exception to printing of PTC calculation

(42) IRM 4.19.7.11.1(6) - revised to indicate box displaying tax form number

(43) IRM 4.19.7.11.1(7) - moved last sentence to new (8), renumbered remainder of subsection

(44) IRM 4.19.7.11.1(8) - revised to include other penalties

(45) IRM 4.19.7.11.1(15) - revised to indicate most paragraphs can be toggled off

(46) IRM 4.19.7.15.2 - added new subsection titled Updating a Work Unit

(47) IRM 4.19.7.16.5(1) - added a Note for correspondence received during a phone call and an Exception for Form 2848

(48) IRM 4.19.7.17(3) - deleted Note

(49) IRM 4.19.7.17(7) v - deleted Note

(50) IRM 4.19.7.17.1(3) - (5) - moved to new subsection titled "Printing Notices from Case History Screen"

(51) IRM 4.19.7.17.1.1 - new subsection titled "Printing Notices from Case History Screen"

(52) IRM 4.19.7.19(5) step 1 - clarified information for "P1" and "P2" and added information for "P3" and "P4"

Effect on Other Documents

IRM 4.19.7 effective on 09-30-2016 supersedes IRM 4.19.7 dated September 18, 2015. This IRM incorporates IRM Procedural Updates 15U1456 (dated 10/02/2015), 15U1617 (dated 11/04/2015) and 15U1707 (dated 11/27/2015).

Audience

AUR tax examiners and management officials at Small Business/Self Employed sites

Effective Date

(09-30-2016)

John D. Caggiano
Acting Director, Examination, Field & Campus Policy
Small Business/Self Employed

Overview

  1. This IRM provides instructions to clerical and technical staff for using the AUR system which consists of various screens and windows. Cases selected for the AUR program are worked by tax examiners who perform an in-depth analysis of each case. The tax examiner determines if the discrepant income or deduction(s) in question are satisfactorily identified on the tax return.

The AUR Workstation

  1. Each Automated Underreporter (AUR) workstation is equipped with a monitor, keyboard and mouse.

    • The monitor initially displays the login screen. Once you are logged into the system, various Windows based applications display. AUR is one of those applications. Within the AUR application various menus that allow you to access taxpayer information are displayed.

    • The keyboard allows you to communicate with the computer by entering information.

    • The mouse is a hand operated device that enables you to control the location of the cursor on the screen.

  2. The button to turn on the monitor is located beneath the screen on the front of the monitor in the far right corner. The power is on when the indicator light displays. The monitor adjustment controls are set to the appropriate positions. There are also brightness and contrast controls on the front or the side of the monitor.

  3. The keyboard contains several types of keys for entering commands or information into the system. Some of the keys are used to log into the workstation itself, while others are used in the AUR application.

    Type of Key Description
    Cursor Control Keys (arrows) Move the cursor.
    Function Keys (keys identified as F1 - F12) Perform commands defined by the AUR program and various actions depending on the key selected.
    Indicator Lights Indicate when the >Num Lock< or >Caps Lock< key is on.
    Letter/punctuation Keys Use for text entry.
    Non Functional Keys Perform no function related to AUR.
    Numeric Keypad Enters numbers when >Num Lock< is on or moves cursor when >Num Lock< is off.
    Window Keys Access the Start Menu.
  4. Function keys are used to perform the following actions:

    Action Function Key
    Accept/Commit >F4<
    Alternative (used when signing on to windows) >ALT<
    Capital Letter Lock >CAPS LOCK<
    Clear Field >F5<
    Clear Form >F7<
    Control (used when signing on to windows) >CTRL<
    Delete Backward >BACKSPACE<
    Delete Character >DELETE<
    Delete Line >SHIFT<>BACKSPACE<
    Delete Record >F3<
    Enlarge Report >F11<
    Exit >F8<
    Highlight Main Menu >ALT<
    Insert Record >F2<
    List Key >F6<
    Next Field >ENTER< or >TAB<
    Next Window >F12<
    Non Functional Keys >F1<>F9<>F10<
    Number Lock >NUM LOCK<
    Page Down >SHIFT< DOWN Arrow
    Page Up >SHIFT< UP Arrow
    Previous Field >SHIFT<>TAB< or >SHIFT<>ENTER<
    Previous Window >SHIFT<>F12<
    Print Screen >PRINT SCRN<
    Screen Lock >CTRL<>ALT<>DELETE<
    Select Main Menu >ALT< and Underlined Menu Letter
    Show Keys >CTRL<>K<
  5. The arrow keys are used to move the cursor up, down, left and right.

  6. There are several keys located on the keyboard that are not used by AUR. They are the Home key, the End key, the Page Up key and Page Down key.

System Authorization and Security

  1. Access to any IRS system, including the AUR system is restricted to authorized users. Access to AUR requires an On-line 5081 (OL5081) and management approval. The AUR Coordinator, appropriate management official and/or security personnel must authorize individual user access.

  2. A security profile is established and maintained for each user. Users may choose their own password. Each password should:

    • Be at least eight characters

    • Contain a minimum of one alpha character, one numeric character, and one special character

      Note:

      The following special characters are valid for AUR passwords:
      "#" (pound sign)
      "_" (underscore)
      "-" (hyphen or minus sign)
      "+" (plus sign)
      "(" (left parenthesis)
      ")" (right parenthesis)
      "=" (equal sign)

    • Differ from the user's login (including any reverse or circular shift of the login)

    Caution:

    AUR passwords are case sensitive. Use of special characters, other than those shown above, will cause the user problems when trying to access certain reports.

  3. The Windows 7 and AUR systems prompt the user when it is time to change their password (generally every 90-120 days). New passwords must vary from old passwords by at least three characters.

  4. AUR user profiles are established to allow access to the specific areas of the AUR system needed to perform your assigned duties. Inform your manager if you are prohibited from accessing an area of the system needed to complete an assigned task.

    Note:

    Due to security issues it is imperative that users are assigned the appropriate profile code. See IRM 1.4.19, Automated Underreporter Technical and Clerical Managers and Coordinators Guide.

  5. The AUR system produces audit trail information. All user activities are tracked from log on to log off. Each user must ensure only authorized accesses are performed. Do not attempt unauthorized system queries.

  6. To ensure the security and integrity of the AUR system:

    1. Protect your password. Do not reveal it to anyone.

    2. Never allow anyone access to the system using your login and password.

    3. If you have reason to believe that your password has been compromised alert your manager immediately.

    4. Lock your workstation when it is not in use.

    5. Log off the system at the end of your shift.

    6. Never leave your workstation with sensitive information displayed on the screen.

    7. Do not eat or drink near computer hardware.

    8. Use computers and software for official purposes only.

    9. Do not copy licensed or copyrighted software for private use. It is a violation of federal law with civil and criminal penalties.

    10. Retrieve your hard copy prints from the printer. Give prints, remaining near or on the printer for an extended period of time, to your manager for disposition.

Accessing the AUR System

  1. Access to the AUR system requires a login and password for both Windows 7 and the AUR system. You need to log onto Windows 7 in order to access the AUR application.

  2. To display the Windows 7 logon window depress the >CTRL<>ALT<>DEL< keys simultaneously. When the logon screen appears you are required to enter your SEID (standard employee identifier) (log in) and Password. The Domain field should already be filled in and should display the letters "DS" . Once you have entered the required information use your mouse and click on "OK" .

  3. If you are a new user, the first time you logon to the workstation use the assigned/temporary password. The system displays a message that your password has expired and prompts you to change your password. Change your password by taking the following actions:

    1. Enter your temporary password.

    2. Choose a new password following the guidelines provided in IRM 4.19.7.1.2 (2), System Authorization and Security.

    3. Re-enter your new password.

    4. Click on the OK.

    Once the required information is entered the workstation desktop applications appear.

  4. Various problems may occur while logging on. Correct mistakes made while entering your login and/or password by using the >Backspace< key or select the "Start Over" box. The >Delete< key does not work for logging on.

  5. Once the required information is entered, the workstation desktop application icons appear. From the desktop double click on the "AUR" icon. The AUR system logon screen displays with AUR displaying in the database field of the window. To gain access to the AUR system, take the actions shown in the table below:

    • Users have the option of using the Enterprise Single Sign-on Logon Manager (ESSO-LM) to gain access to the AUR system.

    • If you are a new user, your user name and temporary password is provided to you. Use this information to initially gain access to the AUR system.

    If Then
    Not using the ESSO-LM
    1. Enter your SEID in the user name field.

    2. >Tab< to or click in the password field (Do Not press enter to get to this field).

    3. Enter AUR password.

    4. Click on "Connect" or press >Enter<.

    Using the ESSO-LM, the "Confirm Smart Card PIN" window displays.
    1. Input your 6 digit PIN then click OK. The AUR LOGON screen will display with your USER ID and Password in the appropriate fields.

    2. Click the Logon button, the AUR Menu displays.

  6. When logging onto the AUR system for the first time, a message stating your Password has expired displays, acknowledge the message. The system prompts you for a new password. See (7) below for steps to change your AUR password.

  7. You can change your password at any time by taking the following actions:

    1. Select Security from the AUR Year Menu.

    2. Select change Password from the drop-down menu.

    3. Enter your old password.

    4. Choose a new password following the guidelines provided in IRM 4.19.7.1.2 (2), System Authorization and Security, above.

    5. Re-enter your new password.

    6. Click on the OK or press >Enter<.

    Note:

    If using ESSO-LM to login be sure to change password in both systems

  8. Once access is granted to AUR, the "Message of the Day" (MOTD) window displays with the AUR Year Menu across the top. Messages appear at the bottom of the MOTD window indicating:

    • The date of your last successful login and the number of failed login attempts, if applicable.

    • The number of days remaining until password expires.

  9. Anytime you are leaving your workstation it is necessary to "lock" your screen. This prevents anyone from using your workstation for unauthorized purposes and protect taxpayer information. To screen lock your workstation, take the following actions:

    1. Press >CTRL<>ALT<>DEL<. This brings up the "Windows Security" window.

    2. Click on "Lock Workstation" or press >Enter<. A window displays indicating the computer is in use and has been locked and that only DS (SEID), your name or an administrator can unlock the computer.

    Note:

    If using ESSO-LM to access the system, removing your Smart card will also lock your system.

  10. To unlock your workstation, press any key or move the mouse. The"Computer Locked" window displays. Press >Ctrl-Alt-Delete< to unlock the computer. The prompt for your password or PIN displays. Enter your Windows 7 password or your 6 digit PIN, not your AUR password to unlock the workstation. The window you were last working in is displayed.

  11. The AUR system automatically logs the user out of the system after 480 minutes of inactivity. You must log out of AUR during your lunch period to prevent the system from logging you off during the day. The 480 minutes begins when you log into the year menu.

  12. To logoff the AUR system, click on "Exit" from the AUR Year Menu. This takes you out of AUR and automatically closes the "Automated Underreporter Microsoft Internet Explorer" window.

SnagIt

  1. The SnagIt Setting control allows you to capture screen prints. To configure SnagIt, take the following actions:

    1. Select "Start" at the bottom of your screen.

    2. Select "All Programs" .

    3. Select the "TechSmith" folder.

    4. Select "SnagIt 11" .

  2. SnagIt contains two types of capture profiles, Basic Capture profile and Other Capture profile.

  3. Basic Capture profile allows you to capture the following:

    1. A specific region.

    2. The full screen.

    3. An entire window.

    4. A web page - this allows you to scroll to capture the entire page.

  4. The Other capture profile allows you to capture the following:

    1. A menu.

    2. Specific text from a window.

    3. Record a screen video.

    4. Images from a web page.

    5. Web page (keeps the links active).

    6. A specific object.

  5. To open SnagIt Editor:

    1. Select the type of capture you would like to do. For most, the region works best.

    2. Click on the big red button on the bottom right of the SnagIt Editor screen.

  6. In SnagIt Editor you can access the DRAW page. Here you can add text, callout shapes to make comments, add arrows to point to something, add a stamp, highlight something, add shapes and erase portions that you do not need.

  7. You can use the IMAGE page to crop, cut out portion, trim the object, rotate, change the way the image looks, add borders, effects and different edges. You can add a blur affect, a watermark, color effects, filters and spotlight a certain portions of the image. There are also options to add HOTSPOTS and TAGS.

  8. By accessing the VIEW screen, you can access the LEARNING CENTER. This will link you to the website where you can view tutorials that can help you if you are having problems with SnagIt.

  9. To set up SnagIt to open when you log on to the computer and to change the default print settings, take the following actions:

    1. Select Tools.

    2. Select Program Preferences.

    3. Select the First tab "Hotkeys" . On the Global Capture Hotkey, put a check mark in the ALT box.

    4. Select the Program Options tab, make sure there is a check mark in only the following: Run SnagIt when Windows starts, Hide SnagIt before capturing, Use tray icon and close to tray, and Embed images when sending e-mail.

    5. Click Apply and OK.

  10. To set up SnagIt to print correctly with on key option, take the following actions:

    1. In the profiles section of the screen, is an icon with paper and a green plus sign, click this to open the Create a Profile Wizard.

    2. Select Image and Next.

    3. On the right side of the Input option is a small down arrow, click. Choose the Window option. Then select >Next<.

    4. Click small down arrow to choose an output option.

    5. Select printer.

    6. Select the down arrow again and deselect the “preview in Editor” option.

    7. Click on properties on this same screen.

    8. Select “use these settings”. Default Windows printer shows.

    9. Below click on page setup.

    10. On the layout tab select the center blue circle in the image position.

    11. On the paper tab select Landscape for the orientation.

    12. Click OK.

    13. Click again to close this screen.

    14. Click >Next<.

    15. Skip steps 4 and 5 as they are not needed.

    16. In the Name box type your name.

    17. Select “print screen” for the Hotkey.

    18. Click Finish.

  11. You can now close the SnagIt program. It is in the system tray on the bottom right of your screen. When you click the Print Screen a red box around your screen with a hand icon displays. SnagIt has captured your screen. To print press enter. It sends it to your printer. If you decide that you do not want to print, right click your mouse and it does not print the screen.

Using Menus

  1. Menus give you a list of options from which you may select screens, windows, and commands. After you have selected the AUR tax year you want to access, you are taken to a main menu. The main menu that displays when you log on the AUR system, depends on your user profile.

  2. The Tax Examiner Main Menu displays as shown below:

    Security Analysis reView Window Exit
    Label Description
    Security Allows the user to view current access.
    Analysis Displays the CASE ANALYSIS screen. From this screen, additional screens/windows may be selected for analyzing AUR cases.
    reView Allows the user access to the system for the purpose of quality review or viewing a case that is not assigned to you, viewing the history of a case or accessing archived information once a tax year is no longer active.
    Window Displays which window the user is currently accessing.
    Exit Allows the user to log off the AUR system.
  3. The location of the cursor or the highlighted options determines which menu option is selected. Menu options are selected by using the mouse or keyboard.

  4. To select an option from the Case Analysis Menu using the mouse, take the following actions:

    1. Place the cursor on the menu option you want to select.

    2. Click the left mouse button.

  5. Most menu options contain additional options on a drop-down menu. The drop-down menu displays when a menu option is highlighted.

  6. To make a selection from the drop-down menu using the mouse, take the following actions:

    1. Place the cursor on the drop-down menu item you want to select.

    2. Click the left mouse button.

  7. There are additional menu options available when an arrow follows a drop-down menu option. This type of menu is a pull-right menu. The pull-right menu displays when a drop-down menu option with an arrow is highlighted.

  8. To make a selection from the pull-right menu using the mouse, take the following actions:

    1. Place the cursor on the menu option you want to select.

    2. Click the left mouse button to display the drop-down menu options.

    3. Place the cursor on the drop-down menu option followed by an arrow.

    4. Click the left mouse button. The pull-right menu displays.

    5. Place the cursor on the pull-right menu item you want to select.

    6. Click the left mouse button.

  9. When using the keyboard to select menu options, press >Alt< and the underlined letter of the menu option. When the pull-down menu displays, press the underlined letter of the menu option you are selecting on your keyboard. This also applies to any pull-right menus. There is no need to press and hold the >ALT< key again. You may also use the down arrow key to select the drop-down menu. When the drop-down menu displays, use the arrow keys to navigate up and down the menu. Most menu options also contain an underlined letter. To make a selection from the drop-down menu, press the underlined letter on your keyboard. Using this method is a good tool to help familiarize you with the menu options.

    Example:

    To select the Analysis menu, press >Alt< and A. The CASE ANALYSIS screen displays.

  10. To make a selection from the drop-down menu using the keyboard, take the following actions:

    1. Press >Alt< and the underlined Case Analysis menu letter.

    2. Press the left and right arrow keys to move across the Case Analysis menu until the desired selection is located.

    3. Press the underlined letter of the drop-down menu.

  11. To make a selection from the pull-right menu using the keyboard, take the following actions:

    1. Press >Alt< and the underlined letter to select a drop-down menu.

    2. Press the up and down arrow keys until the option with a pull-right menu is highlighted.

    3. Press the right arrow key to move across to the pull-right menu and the up and down arrow keys to the desired menu option.

    4. Press the underlined letter of the pull-right menu or press >Alt< and the underlined Case Analysis menu letter to select a drop-down menu.

    5. Press the underlined drop-down menu letter to select the pull-right menu.

    6. Press the underlined pull-right menu letter.

  12. When a menu option is selected in error or when you want to dismiss a menu displayed using the mouse, take the following actions:

    1. Place the cursor on another menu option or in a blank area.

    2. Click the left mouse button.

  13. To dismiss the menu(s) using the keyboard, press >F8<.

Components of a Screen/Window

  1. A screen displays over the entire visual area where a window displays on top of an already displayed screen when selecting an option from a menu. There are several different areas of a screen/window.

    1. The Title Bar gives the title of the screen or window.

    2. The Menu Bar provides drop-down menus from which you can select an additional screen(s)/window(s).

    3. The Message Area displays in the center of the screen to alert you to certain situations. Click on "OK" or place the arrow within the window and press >Enter< to acknowledge the message before you continue.

    4. The Hint Text displays, at the bottom of the screen, for most fields within a screen or window. It describes the field entry to be verified or input.

  2. The following windows may display when you leave a particular screen/window.

    1. The Warning window provides information that you must acknowledge before you continue.

    2. The Alert window alerts you to certain situations you must acknowledge and make the necessary corrections before you continue.

  3. The cursor location determines which screen/window is active. The title bar and outside lines of the screen/window are highlighted when the cursor is positioned within the active screen/window. Move the mouse until the cursor is positioned within the screen/window to be used after selecting a menu option.

  4. Some of the windows contain more items than displays on the window at one time. View this information by using the Scroll Bar located on the right side of the window. Click on the arrows located on the top and bottom of the bar to scroll through the remaining information.

  5. There are several windows that require a computation or information to be entered or verified in order for a secondary window to appear. Once the initial window is completed press the >F12< function key to bring up the next window (commit and exit the window).

  6. Save or commit your changes by pressing >F4<. This key is specifically programmed for saving changes. The system may prompt you to save or commit the changes when you leave a particular screen/window. Click on the appropriate box when the prompt message displays. "NOTE: ALL RECORDS HAVE BEEN COMMITTED TO THE DATABASE" displays as a Hint Text.

  7. Exit a screen/window by selecting Exit from the menu or by pressing >F8<.

  8. While working in the AUR application, you may need to perform additional research in the other tax years, as well as other applications, such as the Integrated Data Retrieval System (IDRS). You may do so by "minimizing" the current screen to access another. To do so, click on the "_" button in the top right hand corner. To restore the window, click on the AUR application box on the bottom of the screen.

    Note:

    IDRS is a separate application and requires an On-line 5081 (OL5081) and management approval for access.

Error Messages

  1. Serious error messages may display as you work through the screen(s)/ window(s) of the AUR system. Most error messages are self-explanatory and direct you to the problem or action necessary. However, some of the error messages are numbers and give no explanation.

  2. The following table lists the most common numbered error messages, a description of the error, and the action to take when one of these error codes displays. If a number displays that is not shown in the table, contact your manager. This list is not all-inclusive.

    Number Description Action
    40405 The system is unable to insert a record created or modified because an invalid entry(ies) has been entered in a field. (For example, the letter "O" was entered instead of the number "0" , or a record already exists containing the information being created or modified.) Correct the invalid field. If you are unable to find or correct the field, exit the CREATE IR or MODIFY IR window and recreate or remodify the information return (IR). If you receive the same error message, contact your manager.
    40654 The record or data of a case has been changed by one user while the case is being viewed/worked on by another user. Exit the case and attempt to access the case at a later time.
    40735 This numbered error message has a multitude of reasons for displaying including database and/or system problems. Exit the case and attempt to access the case at a later time.
    40815 The values set on the system do not match. An action has been done out of order or a value has been added without being set within the system. A new form cannot be sent out. Try reworking the case first. If this does not work, contact your manager to determine the next action.

Analysis Menu

  1. The Case Analysis menu displays at the top of the screen when Analysis is selected from the main menu. Screens/windows selected from the Case Analysis Menu provide information, request information, or perform certain functions necessary to analyze an AUR case. These screens/windows are accessed from drop-down and pull-right menu options as described in IRM 4.19.7.3, Using Menus.

  2. Only the menu options available for a particular screen/window are accessible. The path you have taken, the IR you are reviewing, and the screen or window you are using are the deciding factors for the menu options available.

  3. Initially only the cOntrol,eMployee,Window, and Exit options are accessible until a social security number (SSN) of an assigned case is entered.

Ca Tools Menu

  1. The Ca tools menu allows you to select screens/windows to review or take required actions on an IR(s). The following table describes the Ca tools menu options:

    Menu Items Action
    ir Note Allows the user to record or view a comment concerning action taken on a specific IR.
    Payer agent Displays payer agent information.
    inFo return Displays the complete IR.
    Create ir Allows the user to create an IR for which the system has no corresponding IR.
    Modify ir Allows the user to modify an IR to match the information supplied by the taxpayer.
    Income cmpr Displays the types of income that are discrepant along with a comparison of the Information Return Processing (IRP) and return amounts. The OFFSET CODES window can be viewed from the INCOME COMPARISON screen.
    Search Allows the user to search multiple information returns by payer name, EIN, money amount, document type, income type, group number, payee, send indicator, account number, source code, payer agent, sales date, and description.
    scroll iR Allows the user to scroll through complete information returns.

Group Menu

  1. The Group menu allows the user to group information returns, change the status code of a group, add or delete information returns from a group, and ungroup a previously created group. This can be done by income type, payer EIN, payee TIN, by income code or sales date. The following table describes the Group menu options:

    Menu Item Action
    Create Allows the user to creates groups of information returns by selecting one of the following menu options:
    • Income type

    • payer Ein

    • payee Tin

    • iNcome code

    • Sales date

    • Description

    Status code Allows the user to enter or change the status code of an existing group.
    Add Allows the user to add information returns to an existing group.
    Delete Allows the user to delete information returns from an existing group.
    Ungroup Allows the user to remove all information returns from a specific group.

Ref Tools Menu

  1. The reF tools menu allows the user access to screens/windows that perform special functions. The following table describes the reF tools menu options:

    Menu Item Action
    case Note Allows the user to record or view a comment concerning action taken on the case.
    nOtice para Allows the user to view and select pre-composed paragraphs or create paragraphs for the CP 2000 or CP 2501 notice.
    Tax account Displays complete information about the taxpayer's account. Additional returns may be ordered from this screen.
    Research Allows the user to order MFTRA transcripts or additional returns.
    Message Displays any system messages for the current case.
    Letter Displays the SELECT CORRESPONDEX LETTER window. The user can view and select letters and paragraphs to be sent to the taxpayer, payer, or third party from this window.
    Assessment Allows the user to make an adjustment to the taxpayer's account.
    Update address Allows the user to update the address(es) of the taxpayer, payer(s), and/or third party(ies).
    pc looKup Displays process codes (PCs) that can follow the current PC(s) assigned to the case.
    tp Info Displays the following information under General Information:
    • Filing status

    • Exemptions

    • Over 65 or blind

    • Bankruptcy indicator

    There is a box for Address Change and Case Note. When the Address Change box is selected the UPDATE ADDRESS window displays allowing the user to make any necessary address, third party authorization or power of attorney (POA) updates. When the Case Note box is selected the DISPLAY NOTE window displays allowing the user to leave a case note.
    In addition, the following information displays for both the Primary and Secondary taxpayer:
    • SSN

    • Age

    • Date of birth (DOB)

    • Home telephone number and contact hours

    • Work telephone number and contact hours

    • Taxpayer address

    • Third party authorization information (TIA)

    Additional information included for the case includes:
    • POA information (telephone number, contact hours and address)

    • Temporary address for taxpayer(s)( start and end dates)

    idt Entity Displays transaction code (TC) information relating to identity theft. The following fields displays:
    • Transaction code document locator number (DLN)

    • SSN

    • List of discrepancies

    • Any previous TC

    • Transaction date

    • Action code (AC) secondary date

    • Miscellaneous

    • Type

Ca Tax Comp Menu

  1. The ca Tax comp menu allows you to select screens/window(s) needed to compute and/or recompute the tax, deductions, credits, other taxes, etc. Only the available items display. The following table describes the ca Tax comp menu options in alphabetical order:

    Menu Item Action
    aGi Allows the user to compute the adjusted gross income (AGI) for worksheet windows. Automatically displays only once for each case, as necessary. Included in this window are the Excluded Adoption Benefits field for Form 8839, Qualified Adoption Expenses, and the Foreign Earned Income/Housing field for Form 2555, Foreign Earned Income, Form 2555-EZ, Foreign Earned Income Exclusion, and Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, and Tuition and Fees Deduction.
    admtx Allows the user to compute the amount of medicare wages that may be subject to the additional .9 percent medicare tax.
    amctxw Allows the user to compute the additional medicare tax withheld the taxpayer is entitled to.
    dependent Care Allows the user to compute the taxable amount of employer-provided dependent care benefits (DCB).
    dpad Allows the user to compute allowable Domestic Production Activities Deduction (DPAD) when AGI has been changed.
    epAb Allows the user to compute the taxable amount of employer-provided adoption benefits (EPAB).
    Excess sst/rrt Allows the user to determine if excess social security tax or railroad retirement tax has been underclaimed or overclaimed for the primary and/or secondary taxpayer(s).
    Fica tax Allows the user to compute the employee's share of Federal Insurance Contribution Act (FICA) tax when the taxpayer is actually an employee, not subject to self-employment tax.
    Ira Allows the user to calculate the correct Individual Retirement Arrangement (IRA) deduction for the primary and/or secondary taxpayer(s).
    Lump sum avg Allows the user to compute and/or recomputes the lump sum tax for the primary and/or secondary taxpayer(s).
    Misc adj/c exp The MISC ADJ portion of the window allows the user to enter changes to the AGI that cannot be made using specific screens or windows.
    The C EXPENSE portion of the window is used to adjust Schedule C, Profit or Loss From Business (Sole Proprietorship), expenses taken against statutory wages.
    Neg/rc status Allows the user to determine when the negligence/reasonable cause penalty applies on information returns. Requires input only when the taxpayer has provided reasonable cause.
    Return value Allows the user to verify/input amounts from the tax return, recomputes Schedule A, Itemized Deductions , credits, other taxes, earned income credit, and estimated tax penalty, and calculates the correct tax increase or decrease.
    sav bond eXcl Allows the user to compute the excludable savings bond interest from Form 8815, Exclusion of Interest From Series EE U.S. Savings Bonds Issued After 1989.
    schedule D loss Allows the user to compute the Schedule D, Capital Gains and Losses, loss when the loss is limited.
    sep Keogh Allows the user to calculate the correct SEP/Keogh deduction for the primary and/or secondary taxpayer(s).
    Se tax Allows the user to calculate the correct amount of self-employment tax for the primary and/or secondary taxpayer(s).
    siTr Allows the user to determine the taxable amount of state income tax refund (SITR).
    ssa/rrB Allows the user to calculate the correct amount of social security/railroad retirement benefits.
    sst On tips Allows the user to determine the social security tip tax for the primary and/or secondary taxpayer(s).
    stUdent loan int Allows the user to compute the allowable student loan interest deduction (SLID) based on the taxpayer’s AGI and filing status.
    Tuition/FeeZ Allows the user to compute appropriate Tuition and Fees adjustment.
    Withholding Allows the user to determine if the withholding (W/H) is underclaimed or overclaimed.

Summary Menu

  1. The Summary option displays a notice summary of the case action including per return and IRP amounts for credits, taxes, payments and penalties in addition to the information returns and paragraphs selected for print on the notice to be sent to the taxpayer.

  2. Additional menu options can be accessed while in the DISPLAY NOTICE SUMMARY screen.

    • reF tools

    • Notice review

    • Window

    Note:

    Once the DISPLAY NOTICE SUMMARY screen is committed (>F4<), the Notice review menu option is overlaid by the Process cd menu option.

Process Code Menu

  1. The Process cd menu allows the user to input the process code (PC) or internal process code (IPC), Recon Code, ID Theft Indicator (if applicable) and MFT 31 indicator (if applicable) for the case. A window showing valid codes for the case displays if an invalid or inconsistent code is used.

Control Menu

  1. The cOntrol menu allows the user to access windows used for case or work unit control. The following table describes the Control menu options:

    Menu Item Action
    Case Displays the following pull-right menu options:
    • Case history - allows the user to view case history.

    • Assign - allows the user to assign a case to their control.

    • Release - allows the user to release a case from their control.

    • Transfer - allows the user to transfer or accept control of a case to/from another user.

      Note:

      The Transfer menu option contains a pull-right menu with the following menu options: Transfer, Accept, tRansfer read, and aCcept read.

    • reQuest - allows the user to request a case.

    • stop Notice - allows the user to stop a notice from being issued.

    • rcVd date - allows the user to input the received date of a taxpayer correspondence.

    • cases assIgned - provides a listing of all cases assigned to the user.

    • telephone Case callout - allows the user to generate a report for a specifically entered timeframe when Case Notes have been entered and the "outcall" box has been checked.

    Work unit Displays the following pull-right menu options:
    • Assign - allows the user to assign a work unit to their control.

    • Release - allows the user to release a work unit from their control.

    • Transfer - allows the user to transfer control of a work unit to another user.

    • aCcept transfer - allows the user to accept a work unit transferred to their control from another user.

    • cases assIgned - provides a listing of all cases assigned to the user.

    currEnt access Displays a message showing the option being used (e.g., Review, View Case), whether you are in the training database or production database, and the hardware and tax year being accessed.

    Note:

    The message displays as hint text.

Print Menu

  1. The pRint menu allows the user to print information from the case to be associated with the return or included with information sent to the taxpayer. The steps to print depend on which menu option is selected.

  2. The following table describes the Print menu options:

    Menu Item Description
    Tax account Allows the user to print the tax account.
    inFo returns Allows the user to print all information returns.
    Ind info return Allows the user to print an individual IR.
    case Note Allows the user to print any case notes.
    caSe history Allows the user to print case history.
    Response letter Allows the user to print a letter.
    Cp2000 notice Allows the user to print the CP 2000.
    cp2000 respOnse Allows the user to print the CP 2000 response.
    cP2501 notice Allows the user to print the CP 2501.
    Letter history Allows the user to print the letter history.
    return charGeout Allows the user to print Form 4251, Return Chargeout.
    Statutory Notice Allows the user to print the Statutory notice.
    PTC Report Allows the user to print the Premium Tax Credit (PTC) report.
  3. To print tax account, all information returns(IRs), individual IRs, case notes, or case history, take the following actions:

    1. Select pRint from the Case Analysis menu.

    2. Select one of the five options listed above from the drop-down menu. The report opens in a Microsoft Internet Explorer Window.

      Note:

      If printing the individual IR, the cursor must be on specific IR.

    3. Select File from the menu.

    4. Select Print from the drop-down menu.

    5. To exit the report, select File then Close from the menu options at the top of the report or use the "X" in the top right hand corner of the report.

    6. Press >F8< to exit.

    7. Retrieve the print from the printer.

    8. Associate the printed information with the applicable case.

  4. To print a CP 2000 notice, CP 2000 response, or CP 2501 notice, take the following actions:

    1. Research Case history to get the notice date to be printed.

    2. Select pRint from the Case Analysis menu.

    3. Select one of the three options listed above from the drop-down menu. A NOTICE DATE window displays.

    4. Enter the notice date of notice you want to print in MM/DD/YYYY format or "ALL" . A file download window appears.

    5. Select Open, the report opens in a Microsoft Internet Explorer Window.

    6. Select File from the menu.

    7. Select Print from the drop-down menu.

    8. To exit the report, select File then Close from the menu options at the top of the report or use the "X" in the top right hand corner of the report.

    9. Press >F8< to exit.

    10. Retrieve the print from the printer.

    11. Associate the printed information with the applicable case.

    Note:

    CP 2501, CP 2000, and Statutory notices can also be printed from the Case History screen, see IRM 4.19.7.17.1.1 , Printing Notices from Case History.

  5. To print Response letter, take the following actions:

    1. Select pRint from the Case Analysis menu.

    2. Select Response letter from the drop-down menu. A create correspondex letter window displays. If a letter has been issued a "Y" appears in the box to the left of the letter type.

    3. Click on the box for the desired letter.

    4. Click on Print.

    5. Retrieve the print from the printer.

  6. To print a letter from the letter history, take the following actions:

    1. Select pRint from the Case Analysis menu.

    2. Select Letter history from the drop-down menu. A letter selection window displays. A list of letters and the SCRS date (notice date) appears.

    3. Click on the SCRS DUE DATE of the desired letter. The report opens in a Microsoft Internet Explorer Window.

    4. Select File from the menu.

    5. Select Print from the drop-down menu.

    6. To exit the report, select File then Close from the menu options at the top of the report or use the "X" in the top right hand corner of the report.

    7. Press >F8< to exit.

    8. Retrieve the print from the printer.

    9. Associate the printed information with the applicable case.

  7. To print a return chargeout, take the following actions:

    1. Select pRint from the Case Analysis menu.

    2. Select return charGeout from the drop-down menu. The chargeout automatically displays in a Microsoft window.

    3. Select File from the menu.

    4. Select Print from the drop-down menu.

    5. To exit the report, select File then Close from the menu options at the top of the report or use the "X" in the top right hand corner of the report.

    6. Press >F8< to exit.

    7. Retrieve the print from the printer.

    8. Associate the printed information with the applicable case.

Window Menu

  1. The Window menu option allows you to see which window you are accessing at any time and select a different one if desired.

Exit Menu

  1. The Exit menu option allows you to exit the case and return to the main menu.

Assigning Work

  1. Cases on the AUR system are maintained on a large data base. The cases are systemically downloaded or built by clerical to a work unit(s) within a batch(es). To begin working cases on the AUR system, assign a work unit(s) or an individual case(s) to your user identification number (UID).

Assigning a Work Unit

  1. Before analyzing cases within a specific work unit, the work unit must be assigned to a user identification number (UID).

  2. To assign a Work Unit, take the following actions:

    1. Select the appropriate tax year from the AUR Year menu.

    2. Select Control from the CASE ANALYSIS screen.

    3. Select Work unit from the drop-down menu.

    4. Select Assign from the pull-right menu. The ASSIGN WORK UNIT window displays, with the cursor in the BATCH field.

    5. Enter the five-digit batch number. The cursor moves to the WORK UNIT field.

    6. Enter the two-digit work unit number. The cursor moves to the ACCEPT field.

    7. Enter "Y" to accept the work unit. The SSNs of the work unit displays in the SSN fields.

    8. Verify that these SSNs are part of the work unit.

      Note:

      It is not necessary to verify SSNs on virtual batches.

    9. Press >F4< to commit. A message displays indicating the records have been committed.

    10. Press >F8< to exit.

Verifying SSNs

  1. The batch number and the work unit number is verified by the system. The SSNs for the work unit display in the window. Compare the SSN displayed with the first SSN on the charge-out sheet, return, or work unit listing.

    Note:

    A message displays when any case in the work unit has been requested by another user and is not updated to your UID.

  2. Verify the SSNs by scrolling through the SSNs, take the following actions:

    Note:

    It is not necessary to verify Virtual (V) cases.

    1. Place cursor in the field to the left of the SSN field.

    2. Click the mouse, and the first SSN becomes highlighted.

    3. Press the up and down arrow keys to scroll through the SSNs.

    4. After verifying the displayed SSNs are included in your work unit, enter "Y" to accept the work unit.

    5. Press >F4< to commit. The information on the ASSIGN WORK UNIT window disappears. The following message displays: NOTE: ALL RECORDS HAVE BEEN COMMITTED TO THE DATABASE.

    6. Exit the ASSIGN WORK UNIT window.

  3. You may begin analyzing the cases after the work unit has been assigned to you. Refer to IRM 4.19.3, IMF Automated Underreporter (AUR), and the Analysis Menu section of this IRM.

Case Analysis Overview

  1. The CASE ANALYSIS screen is used to compare the information returns (IRs), provided by payers, to the taxpayer’s tax return. The top line of the CASE ANALYSIS screen includes the originating AUR site, the current batch number, the batch status and the current PC. The entity portion of the CASE ANALYSIS screen includes a summary of case information e.g., category, subcategory, primary and secondary taxpayer's name, age, etc.

  2. Take the following actions to begin the Case Analysis process:

    1. Enter the primary SSN of the first case in the work unit in the PRIMARY SSN field on the CASE ANALYSIS screen.

    2. Press >Enter<. The case data displays.

      Note:

      When the system does not accept an SSN, try inputting it one more time. If the system still does not accept it, try another SSN because the system locks when one SSN has been input and rejected three consecutive times.

      Caution:

      Verify the SSN belongs to your work unit, when the system does not accept an SSN.

    3. Compare the taxpayer entity information to the tax return or TRDB screen and ensure that all elements match.

      Note:

      If the name on the tax return is different than the name on the screen it may be an indication that the wrong return was pulled. Refer to IRM 4.19.3, IMF Automated Underreporter (AUR) and the Wrong Pull section of this IRM.

    4. Compare payer information returns to taxpayer’s paper return/TRDB screen.

      Note:

      When comparing the information returns be sure to review all information for that IR, i.e., payer agent, amended/new indicator, TP name, etc.

    5. Mark information returns as reported, underreported (U/R), overreported (O/R), nontaxable/not applicable, or deleted in the IR CD field. Refer to IRM 4.19.3, IMF Automated Underreporter (AUR), for additional information.

    6. Determine if selected information returns should be included on the notice being sent to the taxpayer by clicking in the "SEND" field.

  3. The following "tips" can be useful when working cases.

    1. To return the cursor to the first IR, press >Ctrl<>=<.

    2. To move the cursor to the previous field, press >Shift< >Tab< or >Shift<>Enter<.

    3. To exit a window/screen instead of clicking on >Exit<, press >F8<.

    4. Check the Hint Text line while in Case Analysis for helpful information pertaining to the IRs.

      Note:

      The Hint Text is activated depending on the location of the cursor. It appears and disappears as the cursor is moved between the Case Analysis and Tax Return Data Base (TRDB) screens.

    5. To list individual cases assigned to you, press >F6<.

Income Comparison Screen

  1. The INCOME COMPARISON screen can be viewed in the CASE ANALYSIS screen and is used:

    • For additional information and/or research

    • To view the complete return and IRP amounts

    • To determine the discrepant income type

  2. To display the INCOME COMPARISON screen:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select Income cmpr from the drop-down menu.

    Note:

    An asterisk identifies the discrepant income type(s).

  3. The OFFSETS field displays codes describing how matched return and IRP amounts were offset for identification of potential discrepancies. Clicking in the "OFFSETS" field allows the user to view the offset codes and meanings. Below is a list of the different codes and their meanings.

    Value Meaning
    1 Within ≡ ≡ ≡
    2 U/R amount with matching O/R amount within ≡
    3 O/R Security with U/R Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, amount(s)
    4 O/D early withdrawal penalty (EWPEN) with O/R Interest
    5 O/R Wages with U/R Statutory Wages and U/R employer provided adoption benefits EPAB
    6 O/R Gross Receipts with U/R Statutory Wages
    7 U/R Wages with O/R Statutory Wages with Schedule (Sch) C/C-EZ
    8 O/R Dividends with U/R Capital Gains
    9 O/R Dividends with U/R Interest
    10 O/R Interest with U/R Dividends
    11 U/D EWPEN with U/R Interest
    12 U/R Pensions with IRA Rollover / IRP
    13 O/R Wages with U/R Gross or Taxable Pensions ≡ ≡ ≡ ≡ ≡ ≡ ≡
    14 O/R Unemployment with overclaimed (O/C) W/H ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    15 O/R Misc Income with U/R Gross or Taxable Pensions
    16 O/R Gross Receipts with U/R Rents/Royalties
    17 O/R Wages with U/R Misc Other Income
    18 O/R Wages or O/R Statutory Wages with U/R Gross Receipts
    19 O/R Misc Other Income with U/R Gross Receipts
    20 O/R Misc Other Income with U/R Wages if 51 percent A Tips
    21 U/R Capital Gain with Sch D Net Long Term Gain if Securities sales Return amount =$0 or Loss AMT <$0
    22 U/R state income tax refund (SITR) with Alimony ≡ ≡ ≡ ≡ ≡ ≡
    23 U/R social security/railroad retirement benefits (SSA/RRB) with O/R Misc Income ≡ ≡ ≡ ≡
    24 Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents - AGI within ≡ ≡ ≡ ≡ of IRP
    25 O/R Taxable Pensions with U/R Wages ≡ ≡ ≡ ≡ ≡
    26 O/R Misc Income with U/R Rents/Royal ≡ ≡ ≡ ≡ ≡ ≡
    27 O/R Income Form 1040/Form 1040A, U.S. Individual Income Tax Return, with /U/R income ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    28 O/R Pension if current year return transaction file (RTF) Section 49 or 50 with an amount claimed
    29 Total U/R nonemployee compensation (NEC), agriculture subsidies (AGSUB), Crop, Commodity Credit Corporation (CCC) Loans, Medical payments, fishing, and Merchant Card with Total Gross Receipts
    30 U/R OTINC with Sch C OTINC - Gross Receipts Discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    31 U/R Health Savings Contribution with O/R Medical Savings Contribution
    32 U/R Medical Savings Contribution with O/R Health Savings Contribution
    33 O/D Mortgage Insurance Premium deduction with underdeducted (U/D) Mortgage Interest deduction
    34 O/D Mortgage Interest deduction with U/D Mortgage Insurance Premium deduction
    35 O/R Wages with O/C W/H and Excess FICA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Message Window

  1. When a condition is present that may require research, referral, or further evaluation, (e.g., the taxpayer resides in a declared disaster area, the taxpayer is deceased, payer agent on file, etc.) the MESSAGE window displays in the CASE ANALYSIS screen when the case is first brought up.

    Note:

    Tax Examiners can access the TAX ACCOUNT screen or the INCOME COMPARISON screen from the MESSAGE window by utilizing the Ca tools and reF tools on the Menu Bar.

  2. The window can be accessed from the TAX ACCOUNT, TAX COMPUTATIONS, or INCOME COMPARISON screens by taking the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Message from the drop-down menu.

    Note:

    Press >Enter< to acknowledge message windows, instead of clicking >Exit<.

  3. When there is no IR for the discrepant item, the following message displays: Discrepancy exists where there are no IRs to mark. See Income Comparison Screen. Exit the MESSAGE window, and view the INCOME COMPARISON screen.

Tax Return Database (TRDB)

  1. Cases accessed through the Case Analysis menu that have available electronically filed return information displays an ELECTRONICALLY FILED RETURN INFORMATION or TRDB window. The TRDB window automatically moves from screen to screen as the case analysis process is completed.

  2. The TRDB window includes a minimize/maximize feature. The TRDB information can be minimized by clicking on the "_" in the upper right corner of the window. To maximize or restore the TRDB information simply click on the "TRDB" tab at the bottom of the screen. This same minimize/maximize feature can also be performed by using the keyboard. By simultaneously pressing the >ALT< and >Down< arrow key, TRDB minimizes. By pressing the >ALT< and >Up< arrow key it is restored.

  3. The TRDB window groups the tax return information into various categories. These categories appear as tabs across the top of the window and include:

    TAB TAX RETURN INFORMATION
    Entity Displays the following information:
    • Name (exactly as entered on the return)

    • Address (exactly as entered on the return)

    • Filing status

    • Number of exemptions

    A box displays with "YES" under "Taxpayer Note" indicating there is a taxpayer note on the account.
    A blank TRDB field indicates a blank line on the tax return.
    Inc Displays a list of income types (shown in order they would appear on a paper filed tax return). If the taxpayer reported an amount, the amount will be reflected on the corresponding income type (e.g., Form W-2, Wage and Tax Statement, income will show as wages)
    Adj Displays a list of adjustments to income (shown in order they would appear on a paper filed tax return). If the taxpayer claimed an adjustment to income the amount displays on the corresponding adjustment type (e.g., IRA deduction, deductible part of self-employment tax, etc.).
    The AGI is also displayed on this tab.
    Tax Displays the following:
    • AGI

    • Check boxes (over 65 or blind)

    • Box to display a Schedule A, Itemized Deductions if present

    • Exemption amount

    • Taxable Income per return (TXI)

    • Tax

    • Additional taxes (e.g., Form 8814, Parents' Election To Report Child's Interest and Dividends, Form 4972, Tax on Lump-Sum Distributions, etc.)

    Credit Displays total tax (before credits) and non-refundable credits (e.g., child care credit, child tax credit, etc.).
    Displays the total of Credits and the total tax after credits.
    Other Displays other taxes including tax on IRAs, self-employment tax, total tax, etc.
    Pmt Displays payments such as federal income tax withheld, estimated tax payments, refundable credits, etc.
    Ref Bal Displays Refund and Balance Due information from the original return, applicable penalty information, etc.
    Index Displays a list of all schedules and/or forms filed electronically with the return. From the Index tab, access this information by clicking on the name of the schedule or form.
    Dotted Displays a list of any dotted line literals the taxpayer has entered and the corresponding line number.

    Note:

    The literals only display for returns filed using Modernized E-file (MeF).

    Attach Displays a list of any attachments to the electronically filed return.
  4. Initially the Entity tab displays. Navigate from category to category by clicking on the desired tab or by pressing the >Page Up< or >F12< keys to move forward and the >Page Down< key to return to the previous tab(s).

  5. A box appears to the right for any line entry that has additional information regarding the entry on the return, or a form or schedule that was used to calculate the amount reported on the tax return.

    Example:

    On the INCOME tab next to wages a box appears with the number 2 and W-2 is shown in the right margin. This indicates that two W-2s were provided. To access the information referred to in the box click on the box or press >F11<. The first available form appears. To view the next one use the >Down< arrow key. Use the>Up< arrow key to return to the previous form.

Special TRDB Features
  1. Throughout the TRDB tabs, scroll bars appear when the complete information available cannot be displayed on a single screen. When this occurs click on the "scroll" area. One exception is the Income tab, which you can use >shift down< or >shift up< arrows to navigate the screen.

  2. The Schedule B and Schedule D windows also include a special feature. They contain check boxes next to the amounts for each payer and amount shown. These check boxes can be used as an analyzation tool to mark which items have been matched to the information returns (IRs). A checkmark can be added by clicking in the box next to the applicable payer/amount and removed by clicking in the same box again. Depress the "Print" button to generate a hardcopy of these windows if needed (operational for Schedule B, Interest and Ordinary Dividends, and Schedule D only).

    Caution:

    These check marks are tools only and do not carryover to the CASE ANALYSIS screen.

  3. In the ENTITY screen, a button labeled "Taxpayer Note" is present. If the button displays "YES" any additional information submitted by the taxpayer with the return may be viewed by clicking the button. Otherwise if no note is present the word "NO" appears.

  4. On the Income tab the Other Income line displays an Explanation box with the word "YES" if additional information that pertains to those line items is available for viewing.

  5. On the Tax tab there is a box that indicates if a Schedule A is present. By clicking in the box you are taken to the Schedule A. The Other Miscellaneous Deduction (Schedule A) line displays an Explanation box with the word "YES" if additional information that pertains to that line item is available for viewing.

TRDB Navigational Tips
  1. Scroll Bars are present in various TRDB screens and may be located on either the left or right sides. These are used to view all available information for a particular area.

  2. Boxes appear next to fields where additional information may be available. To access additional information click on the box.

  3. When moving back and forth between AUR and the TRDB screens, click on the inactive screen to return to it. The active screen appears highlighted.

  4. Some of the same function keys utilized in TRDB and Case Analysis may cause the system to perform differently depending which window is active.

  5. Use the >Enter< key to move from line to line within a TRDB tab.

Viewing Form 1040EZ Returns

  1. The Return Transaction File (RTF) data for Form 1040EZ cases is displayed in the lower portion of the Case Analysis and TAX COMPUTATIONS screens. The return information is also displayed on TRDB. If the taxpayer has filed an amended return, the new AGI and TXI displays instead of the original.

  2. The Return Transaction File (RTF) data for Form 1040EZ cases can be viewed from the DISPLAY NOTICE SUMMARY screen if "1040EZ" appears in the Form field between Proposed Changes to Schedule A Itemized Deductions and Proposed Changes to Tax Computation. To view the information click on "1040EZ" , the RTF data displays.

Tax Account Screen

  1. The TAX ACCOUNT screen is used to:

    1. Review the current entity and the complete tax account information.

    2. Enter a telephone number and/or the contact hours provided by the taxpayer in response to a notice.

    3. View a new transaction code/subsequent adjustment that has been added to the case.

    4. Order a tax return (i.e., TC 150, TC 290/291, etc.). See IRM 4.19.7.8.5.2.1, Ordering a Subsequent Adjustment - TC 290/291.

    5. Input or view the IRC 6501(d), request for prompt assessment, or IRREG Date.

    6. View freeze/math error code(s) and/or adjustment reason codes present on the account.

  2. Tax Account information includes tax return amounts, entity information, and return filing codes for a specific tax module. If additional information is required in screening, click on the appropriate box.

    1. Case Data includes return filing codes such as category and EIC RCT IND.

    2. Posted Return Information includes number of delinquent months, Schedule SE, and Forms 4137, 8959, 8960 and 8919.

Tax Account Related Messages
  1. When certain conditions exist on a case the MESSAGE window displays along with an indication to check the "tax account screen" or "see the IRM" . Some examples are listed below:

    Note:

    This list is not all-inclusive.

    • New transaction code

    • Freeze code

    • Subsequent return has been filed

    • Taxpayer resides in a declared disaster area

    • Taxpayer is deceased

    • Identity theft

  2. Exit the MESSAGE window, and view the TAX ACCOUNT screen for the new transaction code(s) and/or math error codes when present. To access the TAX ACCOUNT screen, take the following actions:

    1. Minimize the TRDB screen if applicable.

    2. Select reF tools from the CASE ANALYSIS screen.

    3. Select Tax account from the drop-down menu.

  3. An asterisk displays in the NEW TRN field of the TAX ACCOUNT screen when a new transaction code is present or subsequent adjustment has been made. Remove the asterisk taking the following actions:

    1. Click on the TAX ACCOUNT screen to activate it.

    2. Press the >Up< and >Down< arrow keys to scroll through the NEW TRN field or click on the entry.

    3. Click on the asterisk to remove it. If there is a Transaction Code (TC) 640 posted on the module, a prompt displays asking if the TC 640 amount should be entered in TAX COMPUTATIONS screen. Click on "Yes" in this window to have the payment information automatically entered in the "TAX COMPUTATIONS" screen.

    4. Press >F8< or click on Exit to exit the TAX ACCOUNT screen. The SAVE CHANGES window displays.

    5. Click on "Yes" to save the changes.

Subsequent Tax Adjustment - TC 290/291
  1. A message displays when a subsequent tax adjustment has posted to the taxpayer's account.

  2. Exit the MESSAGE window and view the TAX ACCOUNT screen for the subsequent adjustment.

Ordering a Subsequent Adjustment - TC 290/291
  1. To order a document using the TC 290/291 or subsequent tax adjustment transaction code(s) posted on the taxpayer’s account, take the following actions:

    Exception:

    If it is determined the adjustment is a Correspondence Imaging System (CIS) document, view document on Account Management System (AMS), see (2) below for additional information.

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Tax account from the drop-down menu.

    3. Enter an "X" in the ORD RTN field adjacent to the TC field.

    4. Press >Enter<.

    5. Press >F8< or click on Exit to exit the TAX ACCOUNT screen. The SAVE CHANGES window displays.

    6. Click on "Yes" to save the changes.

    Note:

    Research ordered from the TAX ACCOUNT screen can only be deleted on the REQUEST RESEARCH window.

    Reminder:

    If the discrepant amount(s) is O/C MID, U/R SET, or 10 percent IRA tax, you must complete computations in the Return Value option, TAX COMPUTATION screen, before ordering the TC 290/291.

  2. When there is a duplicate/amended return (TC 976/977 or TC 971 with Action Code (AC) 010 or 012 through 016 and a posted TC 290/291) on the taxpayers account, an indicator 1 is displayed in the TAX ACCOUNT screen in the CIS column when a CIS document is available.

  3. If a CIS document is indicated, take the following actions:

    1. Access IDRS.

    2. Access AMS.

    3. Click on "Cases by TIN" in the Case Management section of the AMS screen.

    4. Enter the taxpayer SSN in the "Request by TIN" field and then click on go in the Taxpayer Lookup screen or press enter on the keyboard.

      Note:

      This allows the taxpayer account screen to appear.

    5. Click on the view pages link, in the Alert section.

    6. Select the tax year to review the CIS image list and click on "Open Image" .

      Note:

      The thumbnail view can be used to view each page.

    7. Compare the amended return to the underreported (U/R) issues to determine if any or all issues are addressed. Continue normal processing.

    8. After processing changes, select cOntrol, Case, rcVd date on AUR to input the received date located on the amended return.

  4. To exit AMS:

    1. Click on the Exit Account link in the upper right hand corner.

    2. In the Taxpayer Lookup window, click on the Logoff link to exit the system.

Freeze/Math Error Codes
  1. Freeze codes are listed in the FREEZE CDS field of the TAX ACCOUNT screen. Math error codes are listed in the MATH ERROR CODE field on the TAX ACCOUNT screen. A maximum of five (5) math error codes displays in this field.

  2. To view the meaning of the freeze code(s), take the following actions:

    1. Click on the code(s) in the left-hand or right-hand FREEZE CODE field of the TAX ACCOUNT screen. A LEFT HAND/RIGHT HAND FREEZE CODES AND MEANING window displays.

    2. To locate the meaning of a code not listed, type the letter of the code in the FIND field.

    3. Press >Enter< or click on "Find" .

      Note:

      All freeze code meanings do not display. Refer to Document 6209 for a complete list of freeze codes and their meanings.

    4. To find the meaning of another code, delete or type over the code present and press >Enter< or click on "Find" .

    5. Click "OK" or "Cancel" to exit the window and return to the TAX ACCOUNT screen.

    6. Press >F8< to exit the TAX ACCOUNT screen and return to the CASE ANALYSIS screen.

  3. To view the meaning of a math error code(s), take the following actions:

    1. Click on the codes displayed in the MATH ERROR CODE field of the TAX ACCOUNT screen. A MATH ERROR CODES AND MEANING window displays. The Cursor defaults to the first math error code listed.

    2. Place the cursor in the FIND field and enter a 3-digit math error code.

    3. Press >Enter< or click on "Find" . The meaning of the code displays in the VALUE/MEANING field.

    4. To view another math error code, delete or type over the math error code listed and press >Enter< or click on "Find" .

    5. Click "OK" or "Cancel" to exit the window and return to the TAX ACCOUNT screen.

    6. Press >F8< to exit the TAX ACCOUNT screen and return to the CASE ANALYSIS screen.

Viewing Payer Agent Information

  1. When an IR has been identified as containing payer agent information that might help resolve the issue, an indicator Y displays in the PA field. Review the payer agent information by taking the following actions:

    1. Place the cursor on the specific IR that displays the payer agent indicator.

    2. Click once in the PA field to access the PAYER AGENT window. The payer agent information displays.

    3. Press >F8< to exit the PAYER AGENT window and return to the CASE ANALYSIS screen.

  2. The PAYER AGENT window can also be viewed by taking the following actions:

    1. Place the cursor on the specific IR that displays the payer agent indicator.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select Payer agent from the drop-down menu. The payer agent information displays.

    4. Press >F8< to exit the PAYER AGENT window and return to the CASE ANALYSIS screen.

Information Returns

  1. Information returns (IRs) can be viewed from the CASE ANALYSIS screen.

  2. To View the first name line - Click in the field to the left of the name.

  3. To View the second name line - Click in the field to the left of the payee name or payer name fields if an asterisk is present.

  4. To View payee SSN or Payer EIN - Click in the field to the left of the payee or payer name.

  5. To View complete IRs - take the following actions to view all information provided on the IRs:

    1. Click on a specific IR.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select inFo return from the drop-down menu. The selected IR displays.

  6. To View multiple IRs - There are two methods of scrolling to view IRs. To view/compare multiple IRs, take the following actions:

    1. Click on the IR you want to compare to another.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select inFo return from the drop-down menu. The selected IR displays.

    4. Select Ca tools from the INFORMATION RETURN window.

    5. Select scroll iR from the drop-down menu. The same IR displays again.

    6. Press the >Up< and >Down< arrow keys to scroll through the prior/subsequent IRs.

    7. Press >F8< to exit the second IR.

    8. Press >F8< again to exit the window and return to the CASE ANALYSIS screen.

  7. You can also view multiple information returns by taking the following actions:

    1. Click on the IR you want to view.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select scroll iR from the drop-down menu. The selected IR displays.

    4. Press the >Up< and >Down< arrow keys to scroll through the prior/subsequent IRs.

      Note:

      Using this method displays only one IR at a time.

    5. Press >F8< to exit the window and return to the CASE ANALYSIS screen.

Amended Information Returns
  1. Amended information returns are identified on the CASE ANALYSIS screen by "A" , "X" , "R" , or "D" in the AMD IND field. When the system has identified information returns that should be used to replace the original IR, the amended IR has the literal "REPLC" and the literal on the original is "DELET" .

  2. The CASE ANALYSIS screen may contain new information returns that are not identified as discrepant. These information returns are added after case creation and listed with the discrepant information returns. The AMD IND field displays an indicator from the following table.

    Indicator Description
    N New
    AN Amended New
    RN Replace New
    DN Duplicate New
    XN Delete New

    Note:

    These information returns must be screened and an applicable status code assigned.

Changing Income Identify Codes
  1. The income identify code identifies certain income types to the system so that U/R income is included in related calculations (i.e., earned income qualifying for earned income credit, income subject to self-employment tax, etc.).

  2. For a list of valid income identify codes and their meanings see Exhibit 4.19.3-9, Income Identify Codes.

  3. The INC CD field may be changed as required for a specific computation. To change the income identify code, the status code cannot be a "U" . To change the income identify code, take the following actions:

    1. Click on the INC CD field of the selected IR.

    2. Press >F5< to clear the field if an entry is present.

    3. Enter the applicable code or press >F6< for a list of valid codes.

    Note:

    The following message displays if an invalid code is entered for the income type: This is not a valid Income Identify Code. Press >F6< for a list of valid codes.

Entering the IR Status Code
  1. The IR status code determines if the IR information is used in calculating the proposed tax change.

  2. There are four valid IR Status codes that a tax examiner can input in the IR CD field. The following is a list of valid IR status codes.

    Status Code Description
    D Delete
    R Reported
    U Underreported
    N Nontaxable/not applicable
  3. The IR CD field may be changed as required for a specific computation. To change the IR status code, take the following actions:

    1. Click on the IR CD field of the selected IR.

    2. Enter the appropriate status code from the table in (2) above.

      Note:

      The following message appears when the IR belongs to a group: "ERROR: YOU CAN ONLY CHANGE THE STATUS CODE OF A GROUP MEMBER THROUGH THE MENU" . See IRM 4.19.7.8.8.2, Changing Group Status, for additional information.

  4. The system assigns status code "X" to certain IRs indicating the income amount was deleted by the system. You can delete the "X" and enter a different code if required. An "X" cannot be re-entered once it has been deleted.

  5. The system assigns status code "J" to certain IRs indicating the income was not identified as discrepant for an Auto Generated Notice. You can delete the "J" and enter a different code if required. A "J" cannot be re-entered once it has been deleted.

Entering the Reported Amount
  1. When it has been determined there is U/R income, an IR status code "U" is entered.

  2. If the conditions in (3) or (4) below do not apply, the cursor moves to the REPORTED AMOUNT field when "U" is entered. Enter the taxpayer’s reported amount (dollars only), if there is no amount reported, enter "0" (zero).

  3. The ADJUSTED GROSS INCOME window automatically displays when status code "U" is entered for STOCK or capital gains (CG). Once you have input/verified the fields, press >F12< to commit and exit the window. The cursor returns back to the IR CD field. Input status code "U" , the cursor moves to the REPORTED AMOUNT field.

  4. The appropriate computation window displays when status code "U" is entered for W/H, IRA, SSA/RRB, Excess Social Security Tax (SST), Additional Medicare Tax, SEP/KEOGH, DCB, SCH D, SLID, EPAB, or SITR income types.

  5. The system determines the U/R amount and adds it to the total U/R amount in the TOTAL AGI CHANGE field. The U/R amount for that IR displays in the UR AMOUNT field.

  6. If the reported amount of a status code "U" IR needs to be changed, click in the REPORTED AMOUNT field and type over the existing numbers. This only works for IRs that are not grouped.

Selecting the Send Indicator
  1. IR elements (e.g., WAGES, TX/A, STOCK) marked as U/R are automatically selected to print on the notice. The entire IR is NOT sent to the taxpayer. The notice only includes the component(s) of the IR that is identified as U/R or marked with a send indicator.

  2. An "S" , in the SEND field, designates the specific income type(s) included on the IR that is printed on the notice. It may be necessary to send a component of a fully reported IR on the notice.

    Example:

    If you have a fully reported Pension IR that needs to be sent on the notice because of U/R 10 percent Premature Distribution Tax, click in the SEND field in order for the Pension IR to appear on the notice.

  3. To add or remove the "S" indicator at any time, take the following actions:

    1. Move the cursor to the SEND field of the selected IR.

    2. Click the mouse button. The send indicator is added/removed.

Creating, Deleting, or Modifying Information Returns
  1. If there are information documents attached to the return or reported amounts for which we have no corresponding information returns, an IR must be created if

    1. The taxpayer reports income/deductions for which there is no corresponding IR, and the reported amount is needed by the system to perform related calculations. (The corresponding information document may or may not be attached to the return.)

    2. There is an attached information document with no corresponding IR, and the income is not reported. Send PARAGRAPH139 (See Exhibit 4.19.3-7, CP PARAGRAPHS).

    3. The payer's name is garbled, missing or incomplete. Use the employer identification number (EIN) to research IDRS CC INOLES for the proper payer name. If the income is U/R, recreate the IR as shown on the Case Analysis screen, including the correct payer name. Include the created IR on the notice.

      Caution:

      In order for a created IR to be considered valid for inclusion on the notice, it must contain: a payer name, payer EIN, and an income amount greater than zero (in addition to other required entries). The Send Indicator must be manually entered on the IR by clicking in the SEND INDICATOR field on the Case Analysis screen.

      Note:

      The tax examiner may determine other conditions that require creation of an IR.

Creating Information Returns
  1. It may be necessary to create an IR for the completion of the computation windows.

  2. Before the system allows a created IR to be committed the following fields are required:

    • PAYEE TIN CD

    • DOCUMENT TYPE

    • INCOME TYPE

    • INCOME AMOUNT

    Note:

    In order to send a created IR on the notice, it must contain a payer name, EIN and an income amount greater than zero.

  3. In addition to the required fields listed above, the window contains the following fields:

    • PAYER NAME

    • PAYER STREET ADDR

    • PAYER CITY, ST, ZIP

    • PAYER EIN

    • ACCOUNT NUMBER

    • PGR/COD IND

    • INCM CODE

  4. To create an IR, take the following actions:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select Create ir from the drop-down menu. The CREATE IR window displays.

  5. To advance through the fields, take the following actions:

    Reminder:

    Entries must be made in required fields as outlined in (2) above.

    1. Enter the payer name.

    2. Enter the payer street address.

    3. Enter the payer city, state, and zip code.

    4. Enter the payer EIN.

    5. Enter the account number.

    6. Enter the payee TIN code: "P" for Primary, "S" for Secondary, or "E" for EIN.

    7. Enter the Program/Category of Distribution Code (PGR/COD) indicator (if applicable).

      Note:

      The PGR/COD indicator needs to be entered ONLY when the income is subject to the 10 percent, 15 percent, or 25 percent tax. See IRM 4.19.3, IMF Automated Underreporter (AUR), for a list of distribution codes (PGR/COD indicator).

    8. Enter the document type. To view a list of document types, press >F6<. Click on your selection and press >Enter< or click on "OK" and press >Enter<.

    9. Enter the income type or press >F6<.

      Note:

      If the income type you have entered does not match the document type displayed in the DOCUMENT TYPE field, the following message displays: "This is not a valid income type" .

    10. Enter the income amount.

    11. Enter the income identify code or press >F6<.

      Note:

      If multiple income types from the information document need to be entered, repeat steps 9 - 11 until all income types and their amounts have been entered.

    12. Press >F12< to commit and exit the window.

      Caution:

      If information returns are created for a worksheet computation and the worksheet has already been computed, you must add the IR to the applicable group, or ungroup the information returns so the worksheet can be recomputed.

Correcting a Field on a Created Information Return
  1. When an entry has been input incorrectly or when you have continued to the next field without inputting an entry, you may correct the entry or return to a previous field by taking one of the following actions:

    1. Place the cursor in the field to be corrected.

      Note:

      If the cursor is in the AMOUNT field, you must make an entry and press >Enter< before you can return to a previous field.

    2. Press >F5< to clear the field.

    3. Correct the entry and complete any other necessary entries.

    4. Press >F12< to commit and exit the window.

Deleting a Created Information Return
  1. Created IRs can be deleted in two ways depending on whether or not an EIN was entered.

  2. To delete a created IR that does not contain an EIN, take the following actions:

    1. Place the cursor in the IR CD field for the last income type of the created IR.

    2. Press >F3< to delete the record.

    3. Move the cursor upward to the IR CD field of the next income type on the IR.

    4. Repeat the above steps until all income types on the created IR are deleted.

      Note:

      The IR is completely removed from the CASE ANALYSIS screen.

  3. To delete a created IR, which includes an EIN, enter a status code "D" in the IR CD field.

Modifying Information Returns
  1. Information returns can be modified to allow the system to correctly calculate the U/R amount. Before an IR can be modified the status code must be blank or an "X" .

  2. To modify an IR, take the following actions.

    1. Place the cursor on the IR to be modified.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select Modify ir from the drop-down menu. The MODIFY IR window displays. The cursor defaults to the TP field.

      Note:

      When the Modify ir option is selected, the selected IR displays in the top portion of the window. In the bottom portion of the window, you can make the necessary entries to modify the original IR.

    4. Press >F5< to clear any entries (if necessary).

      Note:

      You may change the payee information or split the income between the taxpayer and spouse by entering or changing the payee TIN type in the TP field. Valid TIN types are "P" for Primary, "S" for Secondary, and "E" for EIN.

    5. Enter/verify the appropriate payee TIN type.

    6. Press >Enter<. The cursor moves to the IND field.

    7. Enter the PGR indicator (if applicable).

      Note:

      You may enter or change the PGR indicator in the IND field as required for the computation of the 10 percent, 15 percent, or 25 percent tax. See IRM 4.19.3, IMF Automated Underreporter (AUR). If an indicator is required per IRM instructions, enter the appropriate indicator in the IND field.

    8. Press >Enter<. The cursor moves to the AMOUNT field with the total amount of the IR displayed.

    9. The income amount may be modified as required for specific computations. Press >F5< to clear. Enter the appropriate amount. The system automatically enters the balance of the IR when the next line is completed.

      Note:

      The total of the modified amounts must equal the original IR amount.

    10. Place the cursor in the INCM CODE field.

    11. Press >F5< to clear the entry.

    12. Enter the appropriate code or press >F6<.

    13. Press >Enter<. The original information appears in the TP field and Payer name fields on the next line.

    14. Repeat these steps until all modifications have been completed.

    15. Press >F12< to commit and exit the window.

  3. The modified IR(s) displays on the CASE ANALYSIS screen. The system enters an "X" in the IR CD field of the original IR.

    Note:

    The modified IR(s) cannot be sent to the taxpayer. Enter an "S" in the SEND field of the original IR when it is to be sent.

Deleting a Modified Information Return
  1. To delete a modified IR, take the following actions:

    1. In the CASE ANALYSIS screen, place the cursor on the IR CD field of the original IR (code displays as an "X" ).

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select Modify ir from the drop-down menu. The MODIFY INFORMATION RETURN window displays. The cursor defaults to the TP field.

    4. Press >Enter< until the cursor is in the IR CD field.

    5. Press >F3< in each IR CD field until all fields are deleted.

Grouping Information Returns

  1. Certain income types are automatically grouped by the system to compute the worksheets associated with that type of income. The Group menu option is used to group information returns to determine a total money amount. The information returns may be grouped by:

    • Income type

    • payer Ein

    • payee Tin

    • iNcome code

    • Sales date

    • Description

  2. There are times when IRM 4.19.3, IMF Automated Underreporter (AUR), requires information returns be grouped in order to arrive at the correct U/R amount.

    Note:

    If you create an IR for a worksheet computation and the system has already completed that computation, you can either add the created IR to the group or ungroup and create a new group so the system can recompute the worksheet.

Creating a Group
  1. To create a group, take the following actions:

    1. Place the cursor on an IR to be included in a group.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Create from the drop-down menu.

    4. Select one of the six options in the pull-right menu, listed in IRM 4.19.7.8.8 (1), Grouping Information Returns. The change group status window appears.

    5. After comparing the group total to the amount reported on the return, enter the appropriate status code for the group and press >Enter<. If a status code "U" is entered, the cursor moves to the REP AMT field.

    6. Enter the reported amount from the taxpayer’s return (if applicable).

  2. When Income type, payer Ein, payee Tin or Description are selected, all information returns of the same income type are grouped together; regardless of the income identify code. It may be necessary to delete an IR(s) from the group because of the income identify code.

    Note:

    The system groups only the information returns with the same income type when grouping by payer or payee identification number.

Changing Group Status
  1. To change the group status code, take the following actions:

    1. Place the cursor on an IR in the group that needs the status code changed.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Status code from the drop-down menu. The CHANGE GROUP STATUS window displays with the cursor in the NEW STATUS CD field.

    4. Enter the new status and press >Enter<. If a status code "U" is entered, the cursor moves to the REP AMT field.

    5. Enter the reported amount from the taxpayer’s return (if applicable).

Adding to a Group
  1. It may be necessary to add an IR to a group. For example, if information returns are grouped by income type (Non-Employee Compensation (NEC)) and it appears that a different income type (RENT) was included with the nonemployee compensation reported on the taxpayer’s return, add the RENT IR to the group taking the following actions:

    1. Place the cursor on the IR to be added.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Add from the drop-down menu. The ADD TO GROUP window displays with the cursor in the GROUP NO field.

    4. Enter the group number and press >Enter<. The group status code reverts to blank.

  2. Compare the new group total to the information shown on the taxpayer’s return and enter a new status code by taking the following actions:

    1. Place the cursor on an IR in the group.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Status code from the drop-down menu. The CHANGE GROUP STATUS window displays with the cursor in the NEW STATUS CD field.

    4. Enter the new status code and press >Enter<. If a status code "U" is entered, the cursor moves to the REP AMT field.

    5. Enter the reported amount from the taxpayer’s return (if applicable).

Deleting Information Returns from a Group
  1. It may be necessary to delete a specific IR from a created group. To delete an IR from a group, take the following actions:

    1. Place the cursor on the IR to be deleted.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Delete from the drop-down menu. The group number is deleted from the IR and the IR is deleted from the group.

  2. Compare the new group total to the information shown on the taxpayer’s return and enter a new status code by taking the following actions:

    1. Place the cursor on an IR in the group.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Status code from the drop-down menu. The CHANGE GROUP STATUS window displays with the cursor in the NEW STATUS CD field.

    4. Enter the new status code and press >Enter<. If a status code "U" is entered, the cursor moves to the REP AMT field.

    5. Enter the reported amount from the taxpayer’s return (if applicable).

Ungrouping Information Returns
  1. There may be times when it is necessary to ungroup. The Ungroup option removes all of the information returns from a specific group. To ungroup, take the following actions:

    1. Place the cursor on any IR in the group.

    2. Select Group from the CASE ANALYSIS screen.

    3. Select Ungroup from the drop-down menu. The system removes the group number and the status code from all the information returns in that group.

  2. If the issue has a corresponding worksheet (i.e., SITR, W/H, etc.), it must be recomputed to result in the system considering the issue as reported.

Search Function

  1. Use the search function to search for specific information returns to compare with income reported on the taxpayer’s return.

  2. Information returns may be searched by:

    • Payer name

    • Payer EIN

    • Money amount (minimum and/or maximum)

    • Document type

    • Income type

    • Group number

    • Payee

    • Send indicator

    • Account number

    • Source code

    • Payer Agent

    • Sales Date (to and/or from)

    • Description

    Note:

    When searching by Sales Date or Description, the results of the search appear in ascending order. Check the "Descending" box for results of the search to appear in descending order.

  3. To access the Search menu option, take the following actions:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select Search from the drop-down menu. The SEARCH window displays with the cursor in the PAYER NAME field.

    3. Type the appropriate information such as payer name, EIN, money amt, etc. in the corresponding field or press >F6< for a list of options.

      Note:

      To move from field to field you can use the >Tab<, >Enter<, or up and down arrows or click in the field.

      Note:

      When pressing >F6<, the FIND window displays showing a list of options on top of the SEARCH window. The asterisk indicates the position of the cursor on the CASE ANALYSIS screen. Use the mouse or the up and down arrow keys to make a selection.

    4. After completing the entries for the search requirements, press >F12< to commit and exit the window. The CASE ANALYSIS screen displays ONLY the information returns for that search. A message appears at the bottom of the CASE ANALYSIS screen showing a search is active.

Clearing a Search

  1. To clear a search and restore the CASE ANALYSIS screen to show the original information returns, take the following actions:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select Search from the drop-down menu. The SEARCH window displays with the search requirements displayed.

    3. Place the cursor in all fields that have an entry.

      Note:

      To move from field to field you can use the >TAB<, >Enter<, or up and down arrows or click in the field.

    4. Press >F5< to delete individual entries or >F7< to clear all entries.

    5. Press >F12< to exit the window. The CASE ANALYSIS screen is restored to display all information returns.

Case Notes and Information Return Notes

  1. The Case Note and Information Return Note windows are used to leave notes pertaining to a case and/or an IR. Notes can be up to 2,000 characters. If more than 2,000 characters are needed, you must create a new note.

    Caution:

    Do not include personally identifiable information (PII) in case notes or IR notes.

    Caution:

    Case notes and IR notes remain a part of the official case file These notes can be viewed by other areas such as the United States Tax Court (in the event the taxpayer petitions the court), or by taxpayers through the Freedom of Information Act (FOIA), etc. Caution should be used when case notes and IR notes are written.

Creating Information Return Notes
  1. There are two methods to create an IR note. To create an IR note from the IR in Case Analysis, take the following actions:

    1. Place the cursor in the IR NOTE field of the IR where the note applies and using the left mouse button click once. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

      Note:

      If there is an existing IR note, use the arrow key or click in the next available (empty) TEXT field.

    2. Press >Enter< or click in the text box. The CREATE/EDIT NOTE window displays with the cursor in the TEXT field.

    3. Type your note or select from the standard case notes listed in IRM 4.19.7.8.11.2 (3), Creating a Case Note. Capitalization and punctuation are not necessary. Abbreviate when possible using common abbreviations that can be understood by the next user.

    4. Click >Spellcheck<. The system checks for any misspelled words in the note.

    5. After >Spellcheck< is complete, click on >OK< to complete the note. The DISPLAY NOTE window displays with your UID, date the note was created and the note.

    6. Press >F8< or click on exit to exit the window. The FORMS window displays.

    7. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

      Note:

      An "N" displays in the NOTE field of the IR when a note has been saved.

  2. The DISPLAY NOTE window can also be accessed by taking the following actions:

    1. Place the cursor in the IR CD field of the IR where the note applies.

    2. Select Ca tools from the CASE ANALYSIS screen.

    3. Select ir Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

      Note:

      If there is an existing IR note, use the arrow key or click in the next available (empty) TEXT field.

    4. Press >Enter< or click in the text box. The CREATE/EDIT NOTE window displays with the cursor in the TEXT field.

    5. Type your note or select from the standard case notes listed in IRM 4.19.7.8.11.2 (3), Creating a Case Note. Capitalization and punctuation are not necessary. Abbreviate when possible using common abbreviations that can be understood by the next user.

    6. Click >Spellcheck<. The system checks for any misspelled words in the note.

    7. After >Spellcheck< is complete, click on >OK< to complete the note. The DISPLAY NOTE window displays with your UID, date the note was created and the note.

    8. Press >F8< or click on exit to exit the window. The FORMS window appears.

    9. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

      Note:

      An "N" displays in the NOTE field of the IR when a note has been saved.

Creating a Case Note
  1. There are two methods to create a case note. To create a case note from the CASE ANALYSIS screen, take the following actions:

    1. Place the cursor in the "NOTE" field (under SUBFILE field on the CASE ANALYSIS screen). The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field

      Note:

      If there is an existing case note, use the arrow key or click in the next available (empty) TEXT field.

    2. Press >Enter< or click in the text box. The CREATE/EDIT NOTE window displays with the cursor in the TEXT field.

    3. Type your note or select from the standard case notes listed in (3) below. Capitalization and punctuation are not necessary. Abbreviate when possible using common abbreviations that can be understood by the next user.

    4. Click >Spellcheck<. The system checks for any misspelled words in the note.

    5. After >Spellcheck< is complete, click on >OK< to complete the note. The DISPLAY NOTE window displays with your UID, date the note was created and the note.

    6. Press >F8< or click on exit to exit the window. The FORMS window appears.

    7. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

      Note:

      An "N" displays in the NOTE field in the entity section (under the SUBFILE field) when a note has been saved.

  2. The DISPLAY NOTE window can also be accessed by taking the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select case Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

      Note:

      If there is an existing case note, use the arrow key or click in the next available (empty) TEXT field.

    3. Press >Enter< or click in the text box. The CREATE/EDIT NOTE window displays with the cursor in the TEXT field.

    4. Type your note or select from the standard case notes listed in (3) below. Capitalization and punctuation are not necessary. Abbreviate when possible using common abbreviations that can be understood by the next user.

    5. Click >Spellcheck<. The system checks for any misspelled words in the note.

    6. After >Spellcheck< is complete, click on >OK< to complete the note. The DISPLAY NOTE window displays with your UID, date the note was created and the note.

    7. Press >F8< or click on exit to exit the window. The FORMS window appears.

    8. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

      Note:

      An "N" displays in the NOTE field in the entity section (under the SUBFILE field) when a note has been saved.

  3. There are 24 standard notes available in the DISPLAY NOTE window. Instead of creating your own note, you may select one of the "standard notes" from the table below. To view the standard case notes click in the "text" box. To select a standard case note click on the note number and >Enter<.

    Note Number Definition
    1 TP requested additional time to respond to CP 2000. Advised the extension was granted. Systemic extension done.
    2 TP requested additional time to respond to CP 2000. Advised they have additional 30 days. Did not allow systemic extension.
    3 TP requested additional time to respond to CP 2501. Advised TP to respond within 45 days from date of notice. Did not allow systemic extension.
    4 ID Theft. Advised TP of needed documentation.
    5 GAMBL: TP stated they had gambling losses, adjusted Schedule A as applicable.
    6 Payoff amount provided to TP.
    7 Explained AUR notice/letter received and how to respond.
    8 STOCK: TP will submit Sch D, was advised to address any change to carryover losses, if applicable.
    9 A copy of the AUR notice/letter, tax return, schedule and/or form was sent per TP request.
    10 TP agrees, but cannot pay. Advised TP to check the agree box, sign and complete Form 9465, Installment Agreement Request, and submit with response.
    11 ID Theft: Appropriate ID theft transaction code present, closed case.
    12 DBTCN: Insolvency - Told TP to submit breakdown of assets and liabilities.
    13 Fax received, forwarded to clerical.
    14 IA to Coll.
    15 PC 87: TP full paid before issuance of Stat Notice, agrees with amount owed, closing PC 87.
    16 POA/TIA forwarded to CAF.
    17 Reserved
    18 No 5498 to justify rollover.
    19 Change to AGI. Accessed AMS to re-calculate PTC/APTC. No change to PTC or APTC.
    20 IDTVA - close case no change.
    21 IDTVA - Delete IR(s) (Fill in IR #(s). Continue processing.
    22 IDTVA - Case was determined not to be IDT. Continue processing.
    23 IDTVA - Letter was issued to the taxpayer requesting additional information. Follow-up date has expired with no response from the taxpayer. IDT claim will be closed, continue processing the case.
    24 IDTVA-RPM - Case was determined not to meet RPM criteria. Case requires referral to Exam. PC needs to be input that closes the case to Campus Exam.
  4. There are two check boxes in the DISPLAY NOTE screen, ACTION REQUIRED and OUT CALL.

    • If you are leaving a case note for a case originating from another campus, and you are requesting an action to be taken, click on the Action Required box. This ensures that the case appears on the report generated at the originating campus so the action can be taken. Only use the action required box when it is necessary for the originating site to take an action on a case.

    • If you are attempting an out call or leaving a case note based on an outcall, check the OUT CALL box. This ensures that a history item displays in case history.

  5. Case notes and IR notes are listed in chronological order, with the most current note displaying first. The system tracks the identity of users who enter a note by posting the UID number with the note. The UID displayed also includes the users campus ID/location number, e.g., 28XXXX for Philadelphia, 29XXXX for Ogden, etc.

Adding to or Editing an Existing Note
  1. You can add to or edit a note YOU created ONLY after it has posted. Use this option to add information to an existing note to clarify its meaning or to include related supplemental information.

  2. To add to or edit an existing case note, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select case Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

    3. Click in the TEXT field of the note being added to or edited. The note displays.

    4. Enter the additional text or edit existing text.

    5. Click >Spellcheck<. The system checks for any misspelled words in the note.

    6. After >Spellcheck< is complete click on >OK< to complete the note.

    7. Press >F8< or click on exit to leave the window. The FORMS window appears.

    8. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

  3. To add to or edit an existing IR note, take the following actions:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select ir Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

    3. Click in the TEXT field of the note being added to or edited. The note displays.

    4. Enter the additional text or edit existing text.

    5. Click >Spellcheck<. The system checks for any misspelled words in the note.

    6. After >Spellcheck< is complete click on >OK< to complete the note.

    7. Press >F8< or click on exit to leave the window. The FORMS window appears.

    8. Click on "Yes" or press >Enter< to save the note. Click "No" if you decide the note is not needed and the changes have not been committed. Click "Cancel" if you decide the note needs to be changed before being committed.

Deleting a Note
  1. You can only delete a note YOU created and ONLY after it has posted.

  2. To delete a Case note, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select case Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

    3. Place the cursor in the box directly to the left of the TEXT field of the note you want to delete.

    4. Press >F3< to delete the note. The DELETE NOTE window appears.

    5. Click on "Yes" to delete the note.

    6. Press >F8< or click on exit to leave the window. The FORMS window appears.

    7. Click on "Yes" to save the changes.

  3. To delete an existing IR note, take the following actions:

    1. Select Ca tools from the CASE ANALYSIS screen.

    2. Select ir Note from the drop-down menu. The DISPLAY NOTE window appears with the cursor in the box directly to the left of the TEXT field.

    3. Place the cursor in the box directly to the left of the TEXT field of the note you want to delete.

    4. Press >F3< to delete the note. The DELETE NOTE window appears.

    5. Click on "Yes" to delete the note.

    6. Press >F8< or click on exit to leave the window. The FORMS window appears.

    7. Click on "Yes" to save the changes.

Computing Worksheet Windows

  1. The following are worksheet windows to assist with screening and recomputing tax on cases:

    • SELF EMPLOYMENT TAX

    • IRA

    • WITHHOLDING

    • EXCESS SST/RRT

    • ADDITIONAL MEDICARE TAX

    • ADDITIONAL MEDICARE TAX WITHHELD

    • COMPUTE SITR CHANGE

    • SSA/RRB CHANGES

    • SST ON TIPS

    • LUMP SUM TAX

    • SEP ADJUSTMENT

    • DEPENDENT CARE BENEFITS

    • ADOPTION BENEFITS

    • SAVINGS BOND EXCLUSION

    • ADDITIONAL FICA TAX

    • FICA TAX ADJUSTMENT

    • COMPUTE SCHEDULE D LOSS

    • MISC ADJ/SCH C EXP

    • STUDENT LOAN INTEREST DEDUCTION

    • TUITION AND FEES DEDUCTION

    • FORM 8903

    Note:

    Refer to the hint text line displayed at the bottom of the AUR screen for specific line numbers.

Adjusted Gross Income Window
  1. The ADJUSTED GROSS INCOME window appears at various phases of Case Analysis if the information is needed to compute a subsequent window. When it appears, verify the tax return values. Once the window is verified use the >F12< (next window function) to exit the window. The window does not display again unless it is selected from the menu.

Self-Employment Tax
  1. The SELF EMPLOYMENT TAX window is used to compute or recompute self-employment tax. There are specific fields for computing/recomputing self-employment tax for the primary and/or the secondary taxpayer.

  2. There are various situations where the SE Tax must be computed/recomputed, (3) - (8) below describe the required information for different situations. Be sure to follow the actions outlined for the situations affecting your case.

  3. Whenever it is necessary to compute or recompute SE tax, access the SELF EMPLOYMENT TAX window and take the following actions:

    Note:

    Be sure to input or verify all fields in every worksheet window. Make sure that you don't just "Enter" through the fields.

    Caution:

    Be sure to enter the information for each taxpayer (primary and/or secondary), in the appropriate fields.

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Se tax from the drop-down menu. The SELF EMPLOYMENT TAX window displays with the cursor in the PRIMARY SE TAX NOW field.

      Note:

      To allow the system to recompute the self-employment tax, the PRIMARY and/or SECONDARY SE TAX NOW field(s) must be blank. If an amount is entered, the system uses the amount entered. During responses, a zero must be entered in the primary and/or secondary SE TAX NOW field(s), as applicable, when computing FICA tax in lieu of self-employment tax.

    3. Press >Enter< to move to the PRIMARY and/or SECONDARY SE TAX PER RETURN field(s).

    4. Enter/verify the amount(s) from Schedule SE, Self-Employment Tax, for the PRIMARY and/or SECONDARY SE TAX PER RETURN field(s).

    5. Enter/verify the amount(s) of total self-employment income from Schedule SE in the PRIMARY and/or SECONDARY REPORTED SE INCOME field(s).

      Note:

      This amount must be verified, even if the optional method is used. Negative amounts are entered in the PRIMARY and/or SECONDARY REPORTED SE INCOME fields(s) in the SELF EMPLOYMENT TAX window. This amount should include (but is not limited to) the net totals of Schedule C and Schedule F, Profit or Loss From Farming.

      Note:

      The amount(s), shown in the SCHEDULE C EXPENSE WINDOW PRIMARY and/or SECONDARY SCHEDULE C EXPENSE CHANGE, automatically carries to the SELF-EMPLOYMENT TAX WINDOW.

    6. Enter/verify the amount(s) from Schedule SE as reported or corrected, in the PRIMARY and/or SECONDARY SS/RR WAGES/TIPS field(s) including U/R social security/railroad retirement wages.

      Note:

      Do not include any U/R Social Security/Railroad Retirement (SS/RR) allocated tips, any unreported tips from Form 4137, Social Security and Medicare Tax on Unreported Tip Income, or SE income identified in responses as being subject to FICA tax; the system adds these amounts automatically.

    7. Enter/verify the amount(s) from Schedule SE in the PRIMARY and/or SECONDARY CHURCH WAGES field(s).

    8. Enter self-employment income reported elsewhere on the return, on which self-employment tax has not been paid and is not included in the other fields, in the PRIM and/or SEC REPRTD SE INC NOT ON SCH SE field.

      Note:

      Include amounts from Schedule C or F (net profit) that were not previously subject to SE Tax since the total was less than $400. Do not enter a negative amount.

    9. After entering/verifying the appropriated entries, click on "COMPUTE" (to view the changes before committing) AND press >F12< to commit the changes and exit.

  4. To compute/recompute self-employment tax, when the taxpayer used the optional method, take the following actions:

    Note:

    Be sure to enter the information for each taxpayer (primary and/or secondary) in the appropriate field(s).

    1. Enter "Y" in the OPTIONAL METHOD INDICATOR field(s).

    2. Enter the total reported net farm income from Schedule F and/or Schedule K-1 in the PRIMARY and/or SECONDARY NET FARM P/L field(s).

    3. Enter the total reported gross farm income from Schedule F and/or Schedule K-1 in the PRIMARY and/or SECONDARY GROSS FARM INCOME field(s).

    4. Enter the total reported net nonfarm income from Schedule C, Schedule C-EZ and/or Schedule K-1 in the PRIMARY and/or SECONDARY NET NONFARM P/L field(s).

    5. Enter the total reported gross nonfarm income from Schedule C, Schedule C-EZ and/or Schedule K-1 in the PRIMARY and/or SECONDARY GROSS NONFARM INCOME field(s).

      Note:

      Verify PRIMARY and/or SECONDARY REPORTED SE INCOME field(s) with amounts from Schedule SE.

    6. Click on "COMPUTE" (to view the changes before committing) AND press >F12< to commit and exit.

  5. To compute/recompute self-employment tax, when the taxpayer used the optional method but no longer qualifies for the optional method, take the following actions:

    Note:

    Be sure to enter the information for each taxpayer (primary and/or secondary) in the appropriate field(s).

    1. If present, clear the amount(s) in the applicable PRIMARY and/or SECONDARY SE TAX NOW field(s).

    2. Enter the reported net self-employment income in the applicable PRIMARY and/or SECONDARY SE INC NOT ON SCH SE field(s).

    3. If present, remove the "Y" from the PRIMARY and/or SECONDARY OPTIONAL METHOD IND field(s), leaving the field(s) blank.

    4. If present, remove any amount(s) from the PRIMARY and/or SECONDARY NET FARM P/L field(s), leaving field(s) blank.

    5. If present, remove any amount(s) from the PRIMARY and/or SECONDARY GROSS FARM INCOME field(s), leaving field(s) blank.

    6. Click "COMPUTE" (to view the changes before committing) AND press >F12< to commit and exit.

  6. If the taxpayer reports NEC income on Form 1040 or Form 1040A, line 7 and attaches a Form 8919, Uncollected Social Security and Medicare Tax on Wages, to assess the employee share of FICA, the taxpayer is indicating that he/she is NOT LIABLE for SET on NEC because he/she is an employee. Unless an employment status determination has been rendered by the SS-8 group to identify if the taxpayer is an independent contractor or employee, SE Tax must be assessed. To ensure that credit is given for the tax paid on Form 8919:

    1. Do not change the Income Identify Code.

    2. Access the SE Tax window and enter the Primary/Secondary Form 8919 tax in the PRI/SEC 8919 INCOME SUBJECT TO SE TAX field.

    3. Input the amount of reported NEC in the PRIM/SEC 8919 INCOME SUBJECT TO SE TAX field.

      Note:

      DO NOT enter this amount in the "Reported SE Income not on Sch SE" field of the SE Tax window.

    4. If necessary, adjust the PRI/SEC SS/RR WAGES/TIPS field so it does not include the NEC amount from Form 8919

    5. Remove any amount from the ADDITIONAL FICA TAX window that is subject to SE Tax in the PRIMARY/SECONDARY INCOME SUBJECT TO FICA field.

    6. Click "COMPUTE" (to view the changes before committing) AND press >F12< to commit and exit.

  7. The negligence and reasonable cause columns display ONLY if the Accuracy Penalty Indicator shows that a penalty computation is required. If it is determined that there is NO CHANGE to the currently assessed SE tax, enter the amount from the PRIMARY and/or SECONDARY SE TAX NOW field(s). When SE tax is the only issue and the negligence penalty applies, enter the amount from the PRIMARY and/or SECONDARY SE TAX PER RETURN field.

  8. Leave the PRIMARY and/or SECONDARY SE TAX NOW field(s) blank to allow the system to compute the reasonable cause portion of the SE tax by taking the following actions:

    1. Enter/verify the amount from the PRIMARY and/or SECONDARY REPORTED SE INCOME field(s), less reported SE income included in this field on which SET has not been paid and reasonable cause has not been established.

    2. Enter/verify the amount from the PRIMARY and/or SECONDARY SS/RR WAGES/TIPS field(s), less the portion of U/R SS/RR wages included in this field on which reasonable cause has not been established.

    3. Click on "COMPUTE" (to view changes before committing) AND press >F12< to commit and exit the window.

IRA Contributions
  1. The IRA window is used to compute/recompute the allowable amount of IRA deduction that the taxpayer is entitled to.

  2. Select the IRA window only after all other required windows have been computed.

  3. The taxpayer must meet certain qualifications in order to claim an IRA deduction. There are AGI limits which can affect whether the taxpayer is entitled to claim a full, partial or no deduction. Whether or not the taxpayer is covered by a pension plan is also considered when determining eligibility. Consider the taxpayer or spouse covered by a pension plan when:

    1. The attached Form W-2, Pensionor deferred compensation box is checked.

    2. The attached Form(s) W-2 includes an amount for contributions in Box 12, with a code D, E, F, or S with a corresponding contribution amount.

    3. No Form W-2 is attached to the return and wage income reported on the return is unidentified.

    4. An attached Form W-2 or a W-2 IR is from a federal, state, or local government, including any political subdivision.

    5. The Form W-2 is not attached to the return and the IND field on the W-2 IR is other than blank and/or, contains the literal "DC" .

    6. The taxpayer Filing Status is (FS) 3 or 6 and no indication the taxpayers lived apart.

    7. The taxpayer takes a deduction for a Keogh, SIMPLE Plan, or SEP on Form 1040.

    8. The taxpayer is a postal worker.

  4. Whenever it is necessary to compute or recompute the IRA deduction, the IRA window can be accessed in two ways. To access the IRA window from the IR, take the following actions:

    1. Enter a status code "U" . The IRA window displays.

      Note:

      The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

    2. Enter "P" for primary taxpayer, "S" for spouse, or "B" for both in the PENSION PLAN field. Leave the field blank if unable to determine. See (3) above for when to consider taxpayer covered.

    3. Filing Status 3 or 6 only: Enter "Y" or "N" to indicate if the taxpayer lived with spouse in the LIVED WITH SPOUSE field. If no indication, enter "Y" . For any other filing status, leave blank.

    4. Enter the total reported amount of the primary and/or secondary taxpayer’s earned income in the PRIMARY and/or SECONDARY COMPENSATION field. Include taxable alimony, separate maintenance payments, and net earnings/profit from SE income. If a loss exists on Schedule C or F, see IRM 4.19.3, IMF Automated Underreporter (AUR).

    5. Enter the primary and/or secondary taxpayer’s IRA deduction amount from Form 1040 in the IRA ADJUSTMENT PER RETURN field.

  5. To access the IRA window using the menu options, take the following actions:

    Note:

    The cursor must be located on an IR for IRA contributions to access the Ira window.

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Ira from the drop-down menu. The IRA window displays.

      Note:

      The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

    3. Enter "P" for primary taxpayer, "S" for spouse, or "B" for both in the PENSION PLAN field. Leave the field blank if unable to determine. See (3) above for when to consider taxpayer covered.

    4. Filing Status 3 or 6 only: Enter "Y" or "N" to indicate if the taxpayer lived with spouse in the LIVED WITH SPOUSE field. If no indication, enter "Y" . For any other filing status, leave blank.

    5. Enter the total reported amount of the primary and/or secondary taxpayer’s earned income in the PRIMARY and/or SECONDARY COMPENSATION field. Include taxable alimony, separate maintenance payments, and net earnings/profit from SE income. If a loss exists on Schedule C or Schedule F, see IRM 4.19.3, IMF Automated Underreporter (AUR).

    6. Enter the primary and/or secondary taxpayer’s IRA deduction amount from Form 1040 in the IRA ADJUSTMENT PER RETURN field.

      Note:

      If there are entries in PRIMARY/SECONDARY SEP/KEOGH field, see (6) below.

    7. Press >F12< to commit and exit the window.

  6. If the taxpayer has taken a SEP/Keogh deduction, the SEP/Keogh deduction amount from Form 1040 should display in the PRIMARY/SECONDARY SEP/KEOGH field of the IRA window. If the filing status is 2, and it can be determined that both taxpayers contributed to a Keogh or SEP retirement plan, take the following actions:

    1. Enter the amount contributed by the primary taxpayer in the PRIMARY SEP/KEOGH field.

    2. Enter the amount contributed by the secondary taxpayer In the SECONDARY SEP/KEOGH field.

      Note:

      Enter the total SEP/Keogh deduction amount reported on Form 1040, in the PRIMARY SEP/KEOGH field, when unable to determine a breakdown of the amount.

    3. Press >F12< to commit and exit the window.

  7. The REQUEST FOR ADDL DEDUCTION field is used, only during the Response phase. Enter "Y" , if the taxpayer submits a response requesting additional IRA deduction amounts that were not originally taken.

    Note:

    An IR must be created for the verified additional IRA deduction amount.

Withholding (W/H)
  1. The WITHHOLDING window is used to compute or recompute the allowable amount of federal W/H.

  2. Whenever it is necessary to compute or recompute W/H, the WITHHOLDING window can be accessed in two ways.

    Note:

    When wages are U/R and W/H is discrepant, select the WITHHOLDING window after all wage IRs are analyzed.


    To access the WITHHOLDING window from the IR, take the following actions:

    1. Enter a status code "U" . The WITHHOLDING window displays with the cursor in the EXCESS SST/RRT field.

    2. Enter/verify the amount of excess Social Security Tax/Railroad Retirement Tax (SST/RRT) claimed by the taxpayer in the EXCESS SST/RRT field and press >Enter<. The cursor moves to the MEDICARE TAX WITHHELD field.

    3. Enter/verify the amount of medicare tax withheld claimed by the taxpayer in the MEDICARE TAX WITHHELD field and press >Enter<. The cursor moves to the W/H VERIFIED INDICATOR field.

    4. Enter a "Y" in the W/H VERIFIED INDICATOR field to override a system computed change to W/H and allow an entry in the VERIFIED WITHHOLDING field. This field is used when the verified W/H amount differs from the W/H per return amount (i.e., additional W-2s, rounding, etc.). If the W/H per return is correct, leave these fields blank.

      Note:

      When there is a change to the additional Medicare tax withheld, see IRM 4.19.7.8.12.21, Additional Medicare tax Withheld, for additional information.

    5. Enter/verify the correct amount of allowable W/H.

    6. Press >F12< to commit and exit the window.

  3. To access the WITHHOLDING window using the menu options, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Withholding from the drop-down menu. The WITHHOLDING window displays with the cursor in the EXCESS SST/RRT field.

      Note:

      It is not necessary to change the status code of a group to recompute the W/H.

    3. Enter/verify the amount of excess SST/RRT claimed by the taxpayer in the EXCESS SST/RRT field and press >Enter<. The cursor moves to the MEDICARE TAX WITHHELD field.

    4. Enter/verify the amount of medicare tax withheld claimed by the taxpayer in the MEDICARE TAX WITHHELD field and press >Enter<. The cursor moves to the W/H VERIFIED INDICATOR field.

    5. Enter a "Y" in the W/H VERIFIED INDICATOR field to override a system computed change to W/H and allow an entry in the VERIFIED WITHHOLDING field. This field is used when the verified W/H amount differs from the W/H per return amount (i.e., additional W-2s, rounding, etc.). If the W/H per return is correct, leave these fields blank.

      Note:

      When there is a change to the additional Medicare tax withheld, see IRM 4.19.7.8.12.21, Additional Medicare tax Withheld, for additional information.

    6. Enter/verify the correct amount of allowable W/H.

    7. Press >F12< to commit and exit the window.

Excess Social Security Tax and Railroad Retirement Tax (SST/RRT)
  1. The EXCESS SST/RRT window is used to compute excess SST/RRT.

  2. Whenever it is necessary to compute or recompute excess SST/RRT, the EXCESS SST/RRT window can be accessed in two ways. To access the EXCESS SST/RRT window from the IR, take the following actions:

    1. Enter a status code "U" . The EXCESS SST/RRT window displays with the cursor in the EXCESS SST/RRT field.

    2. Enter/verify the amount of excess SST/RRT claimed by the taxpayer in the EXCESS SST/RRT field and press >Enter<. The cursor moves to the VERIFIED INDICATOR field.

    3. Enter a "Y" in the VERIFIED INDICATOR field to override a system computed change to excess SST/RRT and allow an entry in the VERIFIED EXCESS SST/RRT field. If the excess SST/RRT per return is correct, leave these fields blank.

    4. Enter/verify the correct amount of allowable excess SST/RRT.

    5. Press >F12< to commit and exit the window.

  3. To access the EXCESS SST/RRT window using the menu options, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Excess sst/rrt from the drop-down menu. The EXCESS SST/RRT window displays with the cursor in the EXCESS SST/RRT field.

    3. Enter/verify the amount of excess SST/RRT from Form 1040 in the EXCESS SST/RRT field.

    4. Enter a "Y" in the VERIFIED INDICATOR field to override a system computed change to excess SST/RRT and allow an entry in the VERIFIED EXCESS SST/RRT field.

    5. Enter/verify the correct amount of allowable excess SST/RRT.

    6. Press >F12< to commit and exit the window.

  4. To change a field entry (only if it can be identified as Uncollected Tax (UT) from the dotted portion of the total tax line on Form 1040), take the following actions:

    Note:

    The TIER 1 TIP TAX fields seldom require an entry.

    1. Enter only the UT amount from the Form 1040 dotted portion of the total tax line that is also reported on Form(s) W-2, and identified with a letter code of "A" or "M" in the PRIMARY TIER 1/SS TIP TAX field.

    2. Enter only the UT amount from the Form 1040 dotted portion of the total tax line that is also reported on Form(s) W-2, and identified with a letter code of "A" or "M" in the SECONDARY TIER 1/SS TIP TAX field.

    3. Enter the correct amount of allowable excess SST/RRT as filed or adjusted in the VERIFIED EXCESS SST/RRT field.

    4. Press >F12< to commit and exit the window.

    Note:

    Excess Tier 2 Railroad Retirement tax cannot be claimed as a credit on the Form 1040. The taxpayer must use Form 843, Claim For Refund and Request for Abatement.

    Note:

    Be aware of tax preparation software problems that may lead to reporting inconsistencies on ELF returns. For example, ELF Form W-2, box 12 shows Code "A" amount, but the occupation is not TIPS related; or the ELF Form W-2, box 12 Code "A" or "M" amount matches another item (such as deferred compensation). Follow campus direction to resolve excess SST discrepancies due to ELF reporting inconsistencies.

State and Local Income Tax Refunds (SITR)
  1. The COMPUTE SITR CHANGE window is used to compute the taxable portion of SITR.

  2. The COMPUTE SITR CHANGE window automatically displays when status code "U" is entered for any SITR IR.

  3. The COMPUTE SITR CHANGE window can also be accessed by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select siTr from the drop-down menu.

      Note:

      When SITR is to be computed, the ADJUSTED GROSS INCOME window may display, if so, verify the entries.

  4. To compute or recompute SITR, take the following actions:

    1. Access the COMPUTE SITR CHANGE window as outlined in (2) or (3) above.

      Note:

      The prior year SITR information displays in the PRIOR YEAR section of the window. Only change, if the displayed value(s) is incorrect.

    2. Enter/verify the amount of SITR from Form 1040, line 10, in the REPORTED SITR field.

    3. Enter/verify the sum of state and local income taxes withheld from the taxpayer’s income, as reported on attached Form(s) W-2, in the STATE/LOCAL W/H field.

      Note:

      Leave blank if the Form W-2 are not attached.

    4. Enter the amount from the current year Schedule A, line 5, in the STATE/LOCAL TAX DED field.

      Note:

      Leave this field blank when there is no current year deduction. Do not enter "0" (zero).

    5. Enter the total number of age and blind exemptions for taxpayer and spouse, as reported on Form 1040 in the AGE/BLIND COUNT field.

    6. If the taxpayer has been claimed as a dependent on someone else’s return enter "Y" in the CLAIMED ON ANOTHER’S RETURN? field.

    7. If the Married Filing Separate and Spouse Itemized Deduction/Dual Status box on Form 1040 is checked, enter a "Y" in the FS3/ITEMIZED OR ALIEN field.

    8. Press >F12< to commit and exit the window.

      Note:

      When status code "D" or "N" is input on a SITR IR, you must use the Ungroup option to change the SITR IR status code to any other applicable status code.

Social Security and Railroad Retirement Benefits (SSA/RRB)
  1. The SSA/RRB CHANGES window is used to compute the taxable amount of SSA/RRB.

  2. "LSE" annotated to the left of the SSA/RRB benefit line on Form 1040 is an indication the taxpayer computed taxable SSA/RRB using the Lump Sum Election method. For further information, see IRM 4.19.3.7.17.2, Social Security/Railroad Retirement Benefits Miscellaneous.

  3. The window automatically appears when IR code "U" is entered for any SSA/RRB IR.

  4. The SSA/RRB CHANGES window can also be accessed by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select ssa/rrB from the drop-down menu. The SSA/RRB CHANGES window displays with the cursor in the GROSS SSA/RRB BENEFITS field.

      Note:

      When SSA/RRB is computed the ADJUSTED GROSS INCOME window may display prior to the SSA/RRB window, if so, verify the entries.

  5. To compute or recompute SSA/RRB, take the following actions:

    1. Access the SSA/RRB CHANGES window as outlined in (2) or (3) above.

    2. Enter/verify the gross SSA/RRB amount from Form 1040 in the GROSS SSA/RRB BENEFITS field.

    3. Enter/verify the taxable SSA/RRB amount from Form 1040 in the TAXABLE SSA/RRB BENEFITS field.

    4. Enter/verify the tax-exempt interest amount from Form 1040, in the TAX-EXEMPT INTEREST field.

    5. Press >F12< to commit and exit the window.

  6. Additional actions are required if the filing status is 3 or 6. If filing status 3 or 6, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select ssa/rrB from the drop-down menu.

      Note:

      When SSA/RRB is computed the ADJUSTED GROSS INCOME window may display, if so, verify the entries.

    3. Enter/verify the gross SSA/RRB amount from Form 1040 in the GROSS SSA/RRB BENEFITS field.

    4. Enter/verify the taxable SSA/RRB amount from Form 1040 in the TAXABLE SSA/RRB BENEFITS field.

    5. Enter/verify the tax-exempt interest amount from Form 1040, in the TAX-EXEMPT INTEREST field.

    6. Enter "N" (or a "Y" on an ELF return) in TP LIVED WITH SPOUSE? field, if the taxpayer did NOT live with spouse during the tax year. If there is no indication that the taxpayer did not live with spouse, leave this field blank (not zero).

      Note:

      A "D" annotated to the left of the SSA/RRB benefit line is an indication the taxpayer did not live with his/her spouse during the tax year.

    7. Press >F12< to commit and exit the window.

Social Security Tax (SST) on Tips
  1. The SST ON TIPS window is used to compute the social security tip tax for both the taxpayer and spouse. It displays, when SST on unreported tip income is included on the return, if allocated tip income is present or when selected.

  2. To compute or recompute the SST ON TIPS window, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select sst On tips from the drop-down menu. The SST ON TIPS window displays with the cursor in the PRIMARY UNREPORTED TIP TAX field.

      Note:

      The section for reasonable cause displays only if a computation is required for the Accuracy Related Penalty Due to Negligence.

    3. Enter/verify the original primary/secondary unreported total tip tax amount from Form 4137 in the PRIMARY/SECONDARY UNREPORTED TIP TAX field(s) and press >Enter<.

    4. Enter/verify the original primary/secondary unreported tips subject to Medicare tax from Form 4137, line 6, amount in the PRIMARY/SECONDARY ALLOCATED TIPS field(s) and press >Enter<.

      Note:

      If the Form 4137, line 4 amount is less than the amount of tips that have been reported on Form 1040 (usually in the wage line), recompute the Form 4137 line 6 amount using the amount of tips that were actually reported on Form 1040 instead of Form 4137, line 4 amount. Use this recomputed Form 4137, line 6, amount in the above field.

    5. Enter/verify the primary/secondary reported wages and tips having social security/railroad retirement (Tier 1) tax withheld from Form W-2 or Form 4137 line 8 plus any U/R SS/RR wages in the PRIMARY/ SECONDARY SS/RR WAGES/TIPS field(s).

      Note:

      If Form 4137 was NOT used, this amount can be taken from the wage line on Form 1040. Correct this amount if necessary. Add to this amount, any U/R SS/RR wages. Do not include unreported tips from Form 4137 or SE income identified in responses as being subject to FICA tax. (The system includes these amounts.)

    6. Enter/verify the original primary/secondary Form 4137, line 10 amount in the PRIMARY/SECONDARY UNREPORTED SS TIPS field(s). If the Form 4137, line 6 amount has been recomputed for the PRIMARY/SECONDARY ALLOCATED TIPS field(s), use this recomputed line 6 amount in recomputing the line 10 amount. Use the recomputed line 10 amount, in this field.

    7. Enter/verify the amount from Form 4137, line 6 in the PRIMARY/ SECONDARY MEDICARE-ONLY TIPS field(s). If the Form 4137, line 6 amount has been recomputed, use the recomputed line 6 amount.

    8. Press >F12< to commit and exit the window.

  3. If reasonable cause criteria has been met, make entries in the reasonable cause section of the window by taking the following actions:

    1. Enter/verify the amount from the PRIMARY/SECONDARY SS/RR WAGES/TIPS field(s), less any U/R SS/RR wages included on which reasonable cause has not been established.

    2. Enter/verify the amount from the PRIMARY/SECONDARY MEDICARE-ONLY TIPS field(s), less any U/R Medicare-only tips on which reasonable cause has not been established.

    3. Press >F12< to commit and exit the window.

Lump Sum Tax
  1. The LUMP SUM TAX window is used to compute or recompute the Tax on Lump Sum Distributions for the taxpayer and/or spouse and to add it to the Tax on Accumulation Distribution of Trusts for a recomputed additional tax amount.

  2. If the Lump Sum Tax does not need to be recomputed, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Lump sum avg from the drop-down menu.

    3. Enter/verify the lump sum tax from Form 4972, Part III in the 4972 TAX field. No other entries are required.

      Note:

      When the Lump Sum Tax is to be recomputed, DO NOT make an entry in the PRIMARY and/or SECONDARY LUMP SUM TAX fields (must be blank, not zero). When recomputing the Lump Sum Tax, address all other fields in the Primary and/or Secondary sections, as applicable.

    4. Press >F12< to commit and exit the window.

  3. If the Lump Sum Tax does need to be computed/recomputed, make entries in the PRIMARY and/or SECONDARY LUMP SUM TAX section of the window, take the following actions:

    1. Enter the averaging method: 2 for Part II only, 3 for Part III only.

    2. Enter capital gain from Form 4972, Part II or the amount that qualifies from Form(s) 1099-R.

    3. Enter ordinary income from Form 4972, Part III or the amount that qualifies from Form(s) 1099-R.

    4. Enter the death benefit exclusion from Form 4972, Part III. Do not make an entry if the death benefit exclusion has already been deducted from the amount entered in the ORDINARY INCOME field.

    5. Enter the current actuarial value from Form 4972, Part III, line 11.

    6. Enter the Federal Estate Tax from Form 4972, Part III, line 18.

    7. Enter a "Y" in the MULTIPLE RECIPIENT IND field if Form 4972 is for multiple recipients; otherwise, leave blank.

    8. Enter the multiple recipient percentage from box(es) 8 and/or 9 of Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., or the percentage indicated from the taxpayer’s response. It must be entered as a decimal amount (e.g., .10).

    9. Enter the partial tax attributable to the accumulation distribution amount(s) from Form 4970, Tax on Accumulation Distribution of Trusts.

    10. Press >F12< to commit and exit the window.

  4. The recomputed tax displays in the ADDITIONAL TAXES RECOMPUTED field on the TOTAL OTHER TAXES window in the TAX COMPUTATIONS screen.

Simplified Employee Pension (SEP)/Keogh Deduction
  1. The SEP ADJUSTMENT window is used to compute the allowable amount of self-employed SEP deduction for each taxpayer. To select this menu option, the cursor must be located on a 5498 IR with an income type of SEP or SIMPL.

  2. The window automatically displays, when status code "U" is entered for any SEP/Keogh/SIMPLE IR.

  3. The SEP ADJUSTMENT window can also be accessed by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select sep Keogh from the drop-down menu. The SEP ADJUSTMENT window displays with the cursor in the PRIMARY SE INCOME field.

  4. To compute or recompute the SEP deduction, take the following actions:

    1. Access the SEP ADJUSTMENT window as outlined in (2) or (3) above.

    2. Enter/verify the total net profit amount(s) from the primary taxpayer’s Schedule C and Schedule F or from Schedule SE, Section A or B in the PRIMARY SE INCOME field and press >Enter<.

      Note:

      If the filing status is 2 and it is determined that both taxpayers contributed to a SEP, Keogh, or SIMPLE retirement plan enter/verify both the Primary and Secondary fields in the window.

    3. Enter/verify the SEP/Simple/Qualified Plan amount from Form 1040 in the PRIMARY and/or SEP/KEOGH/SIMPLE DED field.

      Note:

      If you are unable to determine a breakdown of the amount reported on Form 1040, enter the total SEP/KEOGH/ SIMPLE deduction in the PRIMARY SEP/KEOGH/SIMPLE DED field.

    4. Response phase only, enter a "Y" if the taxpayer requests an additional deduction.

    5. Response phase only, enter the primary taxpayer’s adjusted contribution rate, if other than the maximum, in the PRIMARY CONTRIBUTION RATE field.

    6. Response phase only, enter the secondary taxpayer’s adjusted contribution rate, if other than the maximum, in the SECONDARY CONTRIBUTION RATE field.

    7. Press >F12< to commit and exit the window.

Dependent Care Benefits (DCB)
  1. The DEPENDENT CARE BENEFITS window is used to compute/recompute DCB when there is a change to the taxpayer’s earned income.

    Note:

    The ADJUSTED GROSS INCOME window may display when the DEPENDENT CARE BENEFITS window is accessed, if so, verify the entries.

  2. The window automatically displays, when status code "U" is entered, for any DCB IR.

  3. The DEPENDENT CARE BENEFITS window can also be accessed using menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select dependent Care from the drop-down menu. The DEPENDENT CARE BENEFITS window displays with the cursor in the REPORTED DEP CARE BENEFITS field.

  4. To compute or recompute DCB, take the following actions:

    1. Access the DEPENDENT CARE BENEFITS window as outlined in (2) or (3) above.

    2. Enter/verify the DCB amount from Form 2441, Child and Dependent Care Expenses, in the REPORTED DEP CARE BENEFITS field.

    3. Enter/verify the total amount of DCB as reported by the payer(s) on the IR(s) minus the amount forfeited benefits from Form 2441, in the DEPENDENT CARE BENEFITS field.

    4. Enter/verify the qualified expenses amount from Form 2441 in the QUALIFIED EXPENSES field. If the amount is zero, enter "$1" .

    5. Enter/verify the primary taxpayer’s original earned income in the PRIMARY EARNED INCOME field. If negative, enter "0" (zero).

      Caution:

      When earned income is from self employment, enter the amount shown on Schedule SE, line 3.

    6. Enter/verify the secondary taxpayer’s original earned income in the SECONDARY EARNED INCOME field. If negative, enter "0" (zero).

    7. Enter/verify the amount of DCB reported by the taxpayer on the Form 1040wage line in the REPORTED TAXABLE BENEFITS field.

    8. Press >F12< to commit and exit the window.

Employer-Provided Adoption Benefits (EPAB)
  1. The ADOPTION BENEFITS window is used to compute/recompute EPAB when there is a change to the taxpayer's AGI.

    Note:

    The ADJUSTED GROSS INCOME window may display when the ADOPTION BENEFITS window is accessed, if so, verify the entries.

  2. The window automatically displays, when status code "U" is entered for any EPAB IR.

  3. The ADOPTION BENEFITS window can also be accessed using menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the epAb from the drop-down menu. The ADOPTION BENEFITS window displays with the cursor in the NUMBER OF ADOPTED CHILDREN LISTED ON FORM 8839 PART III field.

  4. To compute or recompute EPAB, take the following actions:

    1. Access the ADOPTION BENEFITS window as outlined in (2) or (3) above.

    2. Enter/verify the total number of adopted children Form 8839, Part I. If Form 8839 is not attached, enter "0" (zero).

    3. Enter/verify the total amount from Form 8839, line 18 (all three columns), in the FORM 8839, LINE 18 PER RETURN field. If Form 8839 is not attached, enter "0" (zero).

    4. Enter/verify the amount from Form 8839, line 24, as filed or previously adjusted, in the ADOPTION EXCLUSION PER RETURN field. If Form 8839 is not attached, enter "0" (zero).

    5. Enter/verify the amount from Form 8839, line 25 as filed or previously adjusted, in the TAXABLE BENEFITS PER RETURN field. If Form 8839 is not attached, enter "0" (zero).

    6. Press >F12< to commit and exit the window.

Savings Bond Exclusion
  1. The SAVINGS BOND EXCLUSION window is used to compute/recompute the savings bond exclusion when there is a change to the taxpayer's AGI.

  2. The SAVINGS BOND EXCLUSION window can be accessed by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select sav bond eXcl from the drop-down menu.

      Note:

      The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

    3. Enter/verify all fields in the ADJUSTED GROSS INCOME window including: the Sch B, Line 3 amount in the EXCLUDED SAVINGS BOND field.

      Note:

      If the taxpayer placed their total interest on the wrong line or the total interest amount was included in the AGI total, a correction must be made to the ADJUSTED GROSS INCOME window in order to eliminate the savings bond exclusion window from displaying.

    4. Press >F12< to commit and exit the window. The SAVINGS BOND EXCLUSION window appears.

    5. Enter/verify the amount from Form 8815, line 8, in the MODIFIED SAVINGS BOND INTEREST field.

    6. Press >Enter<. The recomputed savings bond exclusion amount appears in the SAVINGS BOND EXCLUSION window.

      Note:

      Only change the amount in the RECOMPUTED SAVINGS BOND EXCLUSION field if overriding the system computed exclusion, due to rounding. If the amount entered, is outside of the system computed tolerance range, the entry is disallowed and a message displays, showing the allowable tolerance range.

    7. Press >F12< to commit and exit the window.

    Note:

    A warning message "Change below tolerance. Recomputed exclusion is set equal to original exclusion" may appear. Click on >OK< or press >Enter< to acknowledge the message.

FICA Tax
  1. The ADDITIONAL FICA TAX and FICA TAX ADJUSTMENT windows are used to compute the employee’s share of FICA tax, when the taxpayer is actually an employee and not subject to self-employment tax on U/R nonemployee compensation (NEC). See IRM 4.19.3.20.6, Partially Agreed Responses.

  2. To access the ADDITIONAL FICA TAX window, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Fica tax from the drop-down menu.

      Note:

      If the SE TAX window is being changed to FICA tax, a zero must be entered in the primary and/or secondary SE TAX NOW field(s). The REASONABLE CAUSE fields display, only if a computation is required for the Accuracy Related Penalty Due to Negligence.

    3. Enter the primary/secondary total reported and U/R NEC subject to FICA tax in the PRIMARY/SECONDARY NEC SUBJECT TO FICA field(s).

    4. Enter the primary/secondary total reported and U/R social security wages, tips, and railroad retirement compensation subject to FICA tax in the PRIMARY/SECONDARY SS/RR WAGES/TIPS field(s).

    5. In the reasonable cause fields, enter the portion of any U/R amount meeting reasonable cause criteria.

    6. Press >F12< to commit and exit the window.

  3. Once the steps in (2) above have been completed the FICA TAX ADJUSTMENT window displays with the following fields computed:

    • PRIMARY SOCIAL SECURITY INCOME

    • PRIMARY MEDICARE INCOME

    • PRIMARY ADDITIONAL SS TAX

    • PRIMARY ADDL MEDICARE TAX

    • SECONDARY SOCIAL SECURITY INCOME

    • SECONDARY MEDICARE INCOME

    • SECONDARY ADDITIONAL SS TAX

    • SECONDARY ADDL MEDICARE TAX

Schedule D Loss
  1. The COMPUTE SCHEDULE D LOSS window is used to calculate the U/R capital gain amount when a capital loss has been limited.

  2. The window displays when status code "U" is entered for a CG or STOCK IRs.

    Note:

    The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

  3. The SCHEDULE D LOSS window can be accessed using the menu option by taking the following actions:

    1. Place the cursor on a CG or STOCK IR.

    2. Select ca Tax comp from the CASE ANALYSIS screen.

    3. Select schedule D loss from the drop-down menu.

      Note:

      In the response phase in order to consider the correct loss amount at least one of the U/R CG or STOCK IRs must be rescreened.

    4. Enter a "0" (zero) in the SCHEDULE D LOSS field, during screening. During the Response phase, enter the loss from Schedule D, in the SCHEDULE D LOSS field. It must be a negative amount. If it is a positive amount, leave blank.

    5. Enter a "0" (zero) in the CAPITAL GAIN/LOSS field during screening, IF A LOSS. During the Response phase, enter the Capital Gain or (loss) amount from Form 1040 in the CAPITAL GAIN/LOSS field. Enter a loss as a negative amount.

    6. Press >F12< to commit and exit the window.

  4. The system limits the loss to $3,000 ($1,500 for Filing Status 3 or 6). If it is necessary to compute a negative U/R amount to allow a greater Schedule D loss, enter the original reported amount PLUS any INCREASE to the sales price as the reported amount on the CASE ANALYSIS screen. A negative amount cannot be entered in the RETURN AMOUNT field of the DISPLAY NOTICE SUMMARY screen.

Miscellaneous Adjustment/Schedule C Expense
  1. The MISC ADJ/SCH C EXP window has two sections. The miscellaneous adjustment section is used to correct initial processing errors or changes to the AGI, that cannot be corrected using specific windows for income types. The Schedule C expense section is used to adjust expenses claimed on Schedule C.

  2. To access the MISC ADJ/SCH C EXP window, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Misc adj/c exp from the drop-down menu.

    3. Enter the original amounts, as shown on the return or as adjusted during original processing, in the MISC ADJUSTMENT PER RETURN field.

    4. Enter the new, correct amount, in the MISC ADJUSTMENT NOW field. The MISC ADJUSTMENT CHANGE field displays the computer generated adjustment, to correct the AGI.

  3. When Earned Income Credit (EIC) is not an issue, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Misc adj/c exp from the drop-down menu.

    3. Enter the total expenses amount from Schedule C in the PRIMARY and/or SECONDARY SCHEDULE C EXPENSE PER RETURN field.

    4. Enter the correct amount, including "0" (zero), in the PRIMARY and/or SECONDARY SCHEDULE C EXPENSE NOW field. The PRIMARY and/or SECONDARY SCHEDULE C EXPENSE CHANGE field displays the computer generated adjustment.

    5. Press >F12< to commit and exit the window.

  4. The amount in the:

    1. MISC ADJUSTMENT/SCHEDULE C CHANGE box automatically carries to the TOTAL AGI CHANGE box on the CASE ANALYSIS screen.

    2. PRIMARY and/or SECONDARY SCHEDULE C EXPENSE CHANGE box automatically carries to the SELF-EMPLOYMENT TAX window.

  5. A MISC ADJ/SCH C EXP PRESENT box appears in the lower left corner of the CASE ANALYSIS screen when this window has been used.

    Note:

    Rework any windows, that may be affected by the MISC ADJ/SCH C EXP window.

Student Loan Interest Deduction (SLID)
  1. The STUDENT LOAN INTEREST DEDUCTION window is used to calculate the U/R SLID when there is a change to the taxpayer's AGI.

  2. The window appears, when status code "U" is entered for any SLID IR.

    Note:

    The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

  3. To compute or recompute the STUDENT LOAN INTEREST DEDUCTION window using the menu option, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the stuDent loan int from the drop-down menu.

    3. Enter/verify the SLID amount from Form 1040.

    4. Press >F12< to commit and exit the window.

Tuition and Fees (TUTFE)
  1. The TUITION AND FEES DEDUCTION window is used to calculate the allowable tuition and fees deduction when the AGI has been changed.

  2. The window appears, when status code "U" is entered for any TUTFE IR.

    Note:

    The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

  3. The window can also be accessed using the menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the tuition/feeZ from the drop-down menu.

  4. To compute the TUTFE deduction, take the following actions:

    1. Access the window as outlined in (2) or (3) above.

    2. Enter/verify the TUTFE deduction amount from Form 1040, Form 1040A.

    3. Enter a "Y" in the CLAIMED ON ANOTHER RETURN field if the taxpayer can be claimed on another return.

    4. Enter a "Y" in the EDUCATION CREDIT CLAIMED field if Education Credits were taken for the same student as a deduction.

    5. Press >F12< to commit and exit the window.

Domestic Production Activity Deduction (DPAD)
  1. The FORM 8903, Domestic Production Activities Deduction, window is used to calculate the allowable DPAD when the AGI has been changed.

  2. The window appears, when status code "U" is entered for any DPAD IR.

    Note:

    The ADJUSTED GROSS INCOME window may display, if so, verify the entries.

  3. The window can also be accessed using the menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the dpad from the drop-down menu.

  4. To compute DPAD, take the following actions:

    1. Access the window as outlined in (2) or (3) above.

    2. Enter/verify Form 8903, line 10b in the QUAL PROD ACT INCOME field.

    3. Enter/verify Form 8903, line 18 in the WAGES PAID TO OTHERS field.

    4. Enter/verify Form 8903, line 23 in the 99 PATR DPAD field.

    5. Enter/verify Form 8903, line 24 in the EXPAND AFFIL GRP ALLOCAT field.

    6. Enter/verify Form 8903, line 25 in the DOM PROD DED PER RETURN field.

    7. Enter the manually computed DPAD, if applicable, in the MANUAL DOM PROD ACT DED field.

    8. Press >F12< to commit and exit the window.

Additional Medicare Tax
  1. The Additional Medicare Tax, window is used to calculate the Medicare wages that may be subject to the additional 0.9 percent Medicare tax.

  2. The window can be accessed using the menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the admtx from the drop-down menu.

  3. To compute additional Medicare tax, take the following actions:

    1. Access the window as outlined in (2) above.

    2. Enter/verify Form 8959, Additional Medicare Tax, line 1 in the MEDICARE WAGES AND TIPS field.

    3. Enter/verify all Form 4137, line 6 amounts in the UNREPORTED TIPS FROM 4137 field.

    4. Enter/verify all Form 8919, line 6 amounts in the WAGES FROM 8919 field.

      Note:

      The system populates the SELF-EMPLOYMENT INCOME field and can not be changed by the user.

    5. Enter/verify Form 8959, line 14 plus any amounts from Form W-2, box 14 identified as RRTA in the RRTA COMPENSATION & TIPS field.

    6. Press >F12< to commit and exit the window.

Additional Medicare Tax Withheld
  1. The Additional Medicare Tax Withheld window is used to calculate the additional Medicare tax withheld.

  2. The window appears, when status code "U" is entered for any MCTXW IR.

  3. The window can also be accessed using the menu options by taking the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select the admtx from the drop-down menu.

  4. To compute additional Medicare tax withheld, take the following actions:

    1. Access the window as outlined in (2) or (3) above.

      Note:

      See IRM 4.19.3.15.1.4 (9) and (10) , Additional Medicare Tax (Withholding Reconciliation), for additional information on the VERIFIED INDICATOR filed.

    2. Enter/verify Form 8959, line 19 in the MEDICARE TAX WITHHELD WAGES field.

    3. Enter/verify Form 8959, line 23 amounts in the MEDICARE TAX WITHHELD RRTA field.

    4. Enter/verify Form 8959, line 24 amounts in the MEDICARE TAX WITHHELD PER RETURN field.

    5. Enter/verify total amount of Medicare tax withholding in the VERIFIED MEDICARE TAX WITHHOLDING field.

    6. Press >F12< to commit and exit the window.

Return Value Menu Option

  1. Any case that is above tolerance and requires a notice to be issued has to have the tax computations completed in order for the notice/recomputed notice to generate. When the Return Value menu option is selected, the TAX COMPUTATIONS screen displays. Therefore, it is necessary to access the TAX COMPUTATIONS screen when working a case. There are various tax and credit computation screens that are accessible within the TAX COMPUTATIONS screen.

Tax Computations
  1. To display the TAX COMPUTATIONS screen, take the following actions:

    1. Select ca Tax comp from the CASE ANALYSIS screen.

    2. Select Return value from the drop-down menu.

      Note:

      Various warning messages may appear to alert users to conditions on the case. Follow system prompts and take the appropriate actions.

  2. The TAX COMPUTATIONS screen displays the appropriate window(s) used to enter/verify necessary information when >F12< is pressed.

  3. Take the following actions to move through the fields:

    1. Enter/verify filing status, as filed or adjusted, in the FILING STATUS field.

    2. Enter/verify the number of exemptions as filed or previously adjusted in the EXEMPTIONS PER RETURN field.

    3. Enter/verify the number of exemptions as filed, previously adjusted, or being changed in the Exemptions Now field.

    4. Enter/verify AGI, as filed or previously adjusted, in the AGI PER RET field.

    5. Compare the taxable income amount in the TXI field to Form 1040, for any below tolerance adjustments made during original processing.

    6. Enter/verify the amount from Form 1040, base tax or previously adjusted in the BASE TAX PER RET field.

      Note:

      Base tax is the tax that has been computed on the total taxable income.

    7. Enter/verify any miscellaneous adjustment to the taxable income in the MISC TXI ADJ PER RETURN and MISC TXI ADJ NOW fields. The hint text for these fields should read: SEE IRM FOR FURTHER INSTRUCTIONS IF CCF OR F8814 PRESENT. OTHERWISE LEAVE BLANK.

    8. Enter the manual interest, when applicable, in the MANUAL INTEREST field.

      Note:

      This amount may also be entered on the DISPLAY NOTICE SUMMARY screen.

    9. Enter the amount of payments received (RESPONSE PHASE ONLY) in the AMOUNT PREVIOUSLY PAID field.

      Note:

      This amount may also be entered on the DISPLAY NOTICE SUMMARY screen.

    10. Enter Net Operating Loss (NOL), as filed or adjusted, in the NET OPERATING LOSS field.

  4. The required computation window(s) displays automatically when you press >F12< if transaction data is present for the case. Window(s) must be selected from the menu if form(s) or schedule(s) are included on the original return or Form 1040X, Amended U.S. Individual Income Tax Return, and the corresponding windows do not automatically appear.

    Note:

    It may be necessary to manually access computation windows using rV tax comp from the menu options shown in the TAX COMPUTATIONS screen.

  5. The rV tax comp menu option allows you to select screens/windows needed to compute and/or recompute schedules, forms, deductions, credits, other taxes, and penalties. The following table describes the rV tax comp menu options.

    Menu Item Action
    Tax computation Allows the user to compute and/or recompute
    • Schedule A

    • Standard deduction

    • Form 8615, Tax for Certain Children Who Have Unearned Income

    • Schedule D

    • Form 8814

    • Schedule J, Income Averaging For Farmers and Fishermen

    Credit Allows the user to compute and/or recompute
    • Child care credit

    • Credit for the elderly/disabled

    • Education credits

    • Retirement savings credit

    • Child tax credit

    • Adoption credit

    • Other credits

    Other tax Allows the user to compute and/or recompute
    • Alternative minimum tax

    • Net investment tax

    • Other taxes

    Payments Allows the user to compute and/or recompute
    • Earned Income credit

    • Additional Child Tax credit

    pEnalties Allows the user to enter
    • IDRS computed Estimated Tax penalty

    • Fully or partially abate the system computed Late Filing penalty

    • SS Tip Tax penalty

    • Negligence penalty

    • Substantial Understatement penalty

    ACA Allows the user to compute and/or recompute
    • Shared Responsibility Payment (SRP)

    • Premium Tax Credit (PTC)

  6. When all required windows in the TAX COMPUTATIONS screen have been completed, exit the screen by clicking on the Exit menu option, or press >F8< and acknowledge subsequent message.

Form 1040A/1040EZ Window
  1. A window displays if a menu option is selected to compute a form(s) or schedule(s) not normally associated with a Form 1040A or Form 1040EZ and if the tax return is Form 1040A or Form 1040EZ. This window displays the first time only.

  2. Enter override indicator "Y" to verify this calculation is necessary. Click on "OK" or press >Enter<.

Schedule A Deductions
  1. The SCHEDULE A window is used to calculate changes to Schedule A, Itemized Deductions.

  2. To access the Schedule A window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Tax computation from the drop-down menu.

    3. Select schedule A from the pull-right menu.

  3. When a Schedule A is present, the amounts must be verified by taking the following actions:

    1. Enter/verify the medical and dental expense amount from Schedule A, line 1, in the GROSS MEDICAL field.

    2. Enter/verify the total taxes paid amount from Schedule A, line 9, in the TOTAL TAXES PAID field.

    3. Enter/verify the amount of home mortgage interest and points reported on Schedule A, line 10, in the MORTGAGE INTEREST PER RETURN field.

    4. Enter/verify the amount of qualified mortgage insurance premiums from Schedule A, line 13, in the MORTGAGE INSURANCE PREMIUMS PER RETURN field.

    5. Enter/verify the investment interest amount from Schedule A, line 14, in the INVESTMENT INTEREST DED field.

    6. Enter/verify the amount of total interest from Schedule A, line 15, in the TOTAL INTEREST DED field.

    7. Enter/verify the amount of gifts to charity from Schedule A, line 19, in the GIFTS TO CHARITY field.

    8. Enter/verify the casualty and theft loss amount from Form 4684, Casualties and Thefts, line 20 in the GROSS CASUALTY AND THEFT LOSS field.

    9. Enter/verify the total amount of Job Expenses and Most Other Miscellaneous Deductions from Schedule A, line 24, in the GROSS JOB AND MISC EXPENSE field.

    10. Enter/verify the amount of gambling deduction from Schedule A, line 28, in the GAMBLING LOSS OF OTHER MISC field.

    11. Enter/verify the amount of non-gambling deduction from Schedule A, line 28, in the NON-GAMBLING OTHER MISC DEDS field.

    12. Follow the hint text to verify/enter the sum of the total lines on Schedule A in the NON-LIMITED ITEMIZED DEDS PER RETURN field. If the Schedule A was not limited, enter the total itemized deduction amount from Schedule A.

      Note:

      If the Schedule A has not been limited, the amounts on TOTAL LIMITED ITEMIZED DEDS and NON-LIMITED ITEMIZED DEDS fields must be the same. Correct if necessary.

    13. Enter the amount of total itemized deductions from Schedule A, line 29, in the TOTAL ITEMIZED DEDUCTIONS PER RETURN field.

    14. Press >F12< to commit and exit the window.

Standard Deduction
  1. The STANDARD DEDUCTION window is used to calculate changes to the taxpayers standard deduction.

  2. To access the STANDARD DEDUCTION window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Tax computation from the drop-down menu.

    3. Select Standard ded from the pull-right menu.

  3. Take the following actions to enter/verify the correct information:

    1. Enter/verify the total in the AGE/BLIND COUNT field from Form 1040.

    2. Enter a "Y" in the T/P CLAIMED ON ANOTHER’S RETURN? field when necessary.

      Note:

      If "Y" is entered or displayed in the T/P CLAIMED ON ANOTHER’S RETURN? field, take the actions in steps 6 and 7 below.

    3. Enter a "Y" in the FS3 ITEMIZED/DUAL STATUS ALIEN/IE field if the itemized deduction/dual-status box on Form 1040 is checked or the taxpayer checks the box on Schedule A electing to use itemized deductions even though they are less than the standard deduction.

      Note:

      If "Y" is entered or displayed in the FS3 ITEMIZED/DUAL STATUS ALIEN/IE field, take the actions in steps 5 and 6 below.

    4. Enter/verify amount from Form 4684, line 17.

    5. Enter/verify the primary taxpayer’s earned income, as originally reported, in the PRIMARY EARNED INCOME field.

      Caution:

      When earned income is from self-employment, enter the amount shown on Schedule SE, line 3, minus the deductible part of self employment tax deduction.

    6. Enter/verify the secondary taxpayer’s earned income, as originally reported, in the SECONDARY EARNED INCOME field.

      Caution:

      When earned income is from self-employment, enter the amount shown on Schedule SE, line 3, minus the deductible part of self employment tax.

    7. Enter the manually computed standard deduction amount if applicable.

    8. Press >F12< to commit and exit the window.

Form 8615 Tax
  1. The 8615 TAX window is used to calculate changes to Form 8615, Tax for Certain Children Who Have Unearned Income.

  2. To access the 8615 TAX window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Tax computation from the drop-down menu.

    3. Select 8615 Tax from the pull-right menu.

  3. When necessary, take the following actions:

    1. Enter/verify "Y" in the FORM 8615 BOX CHECKED? when Form 8615 is attached to the return.

    2. Enter/verify the parent’s filing status in the PARENT’S FILING STATUS field from Form 8615.

    3. Enter/verify the child's investment income amount from Form 8615 in the CHILD’S INVESTMENT INCOME field.

    4. Enter/verify the child's deduction amount from Form 8615 in the CHILD’S DEDUCTION AMOUNT field.

    5. Enter/verify the parent's taxable income amount from Form 8615 in the PARENT’S TAXABLE INCOME field.

    6. Enter/verify the investment income amount of other children from Form 8615 in the OTHER CHILD INVESTMENT INCOME field.

    7. Enter/verify the parent's tax amount from Form 8615 in the PARENT'S TAX field.

    8. Enter/verify the Manual Child’s Investment Tax. In Case Analysis, leave this field blank. In Responses, see IRM 4.19.3.12.1, 8615 Window, to determine if an entry should be made in this field. If an entry is applicable, enter the amount from line 18 of the recomputed Form 8615.

    9. Press >F12< to commit and exit the window.

Schedule D/Form 8814 Tax
  1. The SCHEDULE D/8814 TAX window is used to calculate changes to Schedule D/Form 8814 Tax.

  2. To access the SCHEDULE D/8814 TAX window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Tax computation from the drop-down menu.

    3. Select sch D/8814 tax from the pull-right menu.

  3. When necessary, take the following actions to enter/verify the amounts:

    1. Enter/verify the qualified dividend amount from Form 1040 in the QUALIFIED DIVIDENDS field.

    2. Enter/verify the short term gain (loss) amount from Schedule D, Part I, line 7, in the SHORT TERM GAIN (LOSS) field.

    3. Enter/verify the net long term gain loss amount from Schedule D, Part II, line 15, in the LONG TERM GAIN (LOSS ) field. If no Schedule D is present, enter the amount from Form 1040, line 13 or Form 1040 A, line 10.

    4. Enter/verify the 28 percent rate gain from Schedule D, Part III, line 18, in the 28% GAIN (LOSS) field.

    5. Enter/verify the unrecaptured 1250 gain amount from Schedule D, Part III, line 19, in the UNRECAPTURES 1250 GAIN field.

    6. Enter/verify the smaller of Form 4952, Investment Interest Expense Deduction, line 4e or the amount entered on the dotted line next to 4e in the FORM 4952 LINE 4e field.

    7. Enter/verify the investment interest expense amount from Form 4952, line 4g, in the FORM 4952 LINE 4g field.

    8. Enter/verify the qualified 5-year gain amount from Schedule D, Part III in the QUALIFIED 5 YEAR GAIN field.

    9. Enter/verify the 8814 tax and/or ECR tax from Form 8814, line 15 and/or the ECR amount from the dotted portion of Form 1040, line 44 or Form 1040A, line 28 in the FORM 8814 TAX/ERC field.

    10. Press >F12< to commit and exit the window.

Child Care Credit
  1. The CHILD CARE CREDIT window is used to compute/recompute changes to Child Care Credit.

  2. To access the CHILD CARE CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select Child care from the pull-right menu.

  3. To compute/recompute Child Care Credit, take the following actions:

    1. Enter/verify the original credit for child and dependent care expenses amount from Form 1040 in the CHILD CARE CREDIT field.

    2. Enter/verify the number of qualifying persons from Form 2441, Part II in the QUALIFYING PERSONS field.

    3. Enter/verify the qualifying expenses amount from Form 2441, Part II in the QUALIFYING EXPENSES field. If the amount is zero, enter "$1" .

    4. Enter/verify the excluded benefits amount from Form 2441, Part III in the EXCLUDED BENEFITS field.

    5. Enter/verify the amount of Prior Year Expenses reported on the Form 2441, identified as CPYE in the PRIOR YEAR EXPENSES field.

    6. Enter/verify the primary taxpayer’s original earned income as reported on Form 2441, in the PRIMARY EARNED INCOME field.

      Caution:

      When earned income is from self employment, enter the amount shown on Schedule SE, line 3.

    7. Enter/verify the secondary taxpayer’s earned income as reported on Form 2441, Part II in the SECONDARY EARNED INCOME field.

    8. Press >F12< to commit and exit the window.

Credit for the Elderly
  1. The CREDIT FOR THE ELDERLY OR DISABLED window is used to compute/recompute changes to Credit for the Elderly or Disabled.

  2. To access the CREDIT FOR THE ELDERLY OR DISABLED window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select Elderly/disabl from the pull-right menu.

  3. To compute/recompute the Credit for the Elderly, take the following actions:

    1. Enter/verify the original Credit for the Elderly from Form 1040 in the ORIGINAL CREDIT FOR ELDERLY field.

    2. Enter/verify the number of the box checked on Schedule R, Credit for the Elderly or the Disabled, Part I in the FILING STATUS AGE INDICATOR field.

      Note:

      The cursor does not leave this field until a valid number is entered, valid entries are single digits "1" through "9" .

    3. Enter/verify the taxable disability income amount from Schedule R, Part III in the TAXABLE DISABILITY INCOME field.

    4. Verify the amount computed by the system. Only enter the non-taxable part of social security benefits amount from Schedule R, Part III in the NON-TAXABLE SSA/RRB/AMOUNT field, if needed.

    5. Enter/verify the non-taxable veterans' pensions and other pension and annuity amount from Schedule R, Part III in the OTHER NON-TAXABLE P/A AMOUNT field.

    6. Press >F12< to commit and exit the window.

Nonrefundable Credits
  1. The NONREFUNDABLE CREDITS window is used to compute/recompute changes to Nonrefundable Credits.

  2. To access the NONREFUNDABLE CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select Other credits from the pull-right menu.

  3. Take the following actions to compute Nonrefundable credits:

    1. Enter/verify the foreign tax credit amount from Form 1040 in the FOREIGN TAX CREDIT field.

    2. Enter/verify the Residential Energy Credit from Form 1040 in the RESIDENTIAL ENERGY CREDIT field.

    3. Enter/verify any Miscellaneous Credits amount from Form 1040, plus any miscellaneous credits annotated on the dotted portion of the Total Credits line on Form 1040 in the MISCELLANEOUS CREDITS field.

    4. Press >F12< to commit and exit the window.

Child Tax Credit
  1. The CHILD TAX CREDIT window is used to compute/recompute changes to Child Tax Credit.

  2. To access the CHILD TAX CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select child Tax from the pull-right menu.

  3. To compute the Child Tax Credit, take the following actions:

    1. Verify the Child Tax Credit amount from Form 1040 in the RETURN AMOUNT field.

    2. Enter/verify the number of qualifying children (enter "0" if no qualifying children) indicated on Form 1040 in the QUALIFYING CHILDREN field.

    3. Enter/verify the total credits from Form 3800, Form 8396, Form 8801, Form 8834, Form 8859, Form 8910, Form 8911, Form 8912, and Form 8936 in the MISC CREDIT AMOUNT field.

    4. Enter the manually computed Child Tax Credit amount, if applicable, in the MANUAL CHILD TAX CREDIT field.

    5. Press >F12< to commit and exit the window.

Education Credits
  1. The EDUCATION CREDIT window is used to compute/recompute changes to education credits.

  2. To access the EDUCATION CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select eDucation from the pull-right menu.

  3. To compute the education credits, take the following actions:

    1. Enter/verify the education credits amount from Form 1040 in the RETURN AMOUNT field.

    2. Enter/verify the student(s) SSN(s) in the STUDENT SSN field(s).

    3. Enter/verify the Tentative American Opportunity Credit amount from Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), in the AOC QUAL EXPENSE field.

    4. Enter/verify the Lifetime Qualified Expense amount from Form 8863 in the LIFETIME QUAL EXPENSE field.

    5. Enter a "Y" in the NOT ELIGIBLE FOR EDU CR REFUND field when the box on Form 8863, line 7 is checked.

    6. Enter/verify the refundable education credits amount in the RFNDBLE CREDIT AMT field.

    7. When applicable enter the manually computed refundable education credit based on the taxpayer's response in the MANUAL RFNDBLE EDU CREDIT field.

    8. When applicable enter the manually computed education credit based on the taxpayer's response in the MANUAL EDUCATION CREDIT field.

    9. Press >F12< to commit and exit the window.

Retirement Savings Contribution Credit
  1. The RETIREMENT SAVINGS CONTRIBUTION CREDIT window is used to compute/recompute changes to Retirement Savings Contribution Credit.

  2. To access the RETIREMENT SAVINGS CONTRIBUTION CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select Retirement from the pull-right menu.

  3. To compute the Retirement Savings Contribution credit, take the following actions:

    1. Access the window as outlined in (2) above.

    2. Enter/verify the Retirement Savings Contribution Credit amount from Form 1040 in the RETURN AMT field.

    3. Enter/verify the total IRA Contribution/Elected Deferral amounts from Form 8880, Credit for Qualified Retirement Savings Contributions, (column A and/or B) in the TOTAL IRA CONTR/ELECTIVE DEFERRALS fields.

    4. Enter/verify the total distributions amount from Form 8880 (column A and/or B) in the TOTAL DISTRIBUTIONS field.

    5. Enter the manually computed Retirement Savings amount, if applicable, in the MANUAL RSC CREDIT field.

    6. Press >F12< to commit and exit the window.

Alternative Minimum Tax (Form 6251)
  1. The ALTERNATIVE MINIMUM TAX window is used to compute/recompute changes to Alternative Minimum Tax.

  2. To access the ALTERNATIVE MINIMUM TAX window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Other tax from the drop-down menu.

    3. Select Alt min tax from the pull-right menu.

  3. To compute/recompute the Alternative Minimum Tax, take the following actions:

    1. Access the window as outlined in (2) above.

    2. Enter/verify the total Taxes You Paid amount from Schedule A in the SCH A TOTAL TAXES field.

    3. Enter/verify the Certain Interest from a Home Mortgage amount from Form 6251, Alternative Minimum Tax - Individuals, Part 1, in the MORTGAGE INTEREST field.

    4. Enter/verify the Tax Refund amount from Form 6251, Part I in the REFUND OF TAXES field. (Enter as a positive amount.)

    5. Enter/verify the Investment Interest Expense amount from Form 6251, Part I in the INVESTMENT INT EXP field.

    6. Enter/verify the Depletion amount from Form 6251, Part I, in the DEPLETION field.

    7. Enter/verify the Net Operating Loss deduction amount (as a positive amount) from Form 6251, Part I, in NOL (F6251 LN 10) field.

    8. Enter/verify the Alternative tax net operating loss deduction (as a positive amount) from Form 6251, Part I, ALT TAX NOL DEDUCTION field.

    9. Enter/verify the Interest from Specified Private Activity Bonds Exemption amount from Form 6251, Part I, in the TAX-EXEMPT BOND INT field.

    10. Enter/verify the Qualified Small Business Stock amount from Form 6251, Part I, in the SECTION 1202 field.

    11. Enter/verify the Exercise of Incentive Stock Options amount from Form 6251, Part I in the INCENTIVE STOCKS field.

    12. Enter/verify the Estates and Trust amount from Form 6251, Part I, in the ESTATES/TRUSTS field.

    13. Enter/verify the Electing Large Partnerships amount from Form 6251, Part I in the LARGE PARTNERSHIPS field.

    14. Enter/verify the Disposition of Property amount from Form 6251, Part I, in the DISP OF PROPERTY field.

    15. Enter/verify the Depreciation of Assets amount from Form 6251, Part I, in the DEPRECIATION field.

    16. Enter/verify the Passive Activities amount from Form 6251, Part I, in the PASSIVE ACTIVITIES field.

    17. Enter/verify the Loss Limitations amount from Form 6251, Part I, in the LOSS LIMITATIONS field.

    18. Enter/verify the Circulation Costs amount from Form 6251, Part I, in the CIRCULATION COSTS field.

    19. Enter/verify the Long-Term Contracts amount from Form 6251, Part I, in the LONG-TERM CONTRACTS field.

    20. Enter/verify Mining Costs amount from Form 6251, Part I, in the MINING COSTS field.

    21. Enter/verify the Research and Experimental Costs amount from Form 6251, Part I in the RESEARCH/EXPERIMENTAL field.

    22. Enter/verify the Income from Certain Installment Sales amount from Form 6251, Part I, in the INSTALLMENT SALES field. (Enter as a positive amount.)

    23. Enter/verify the Intangible Drilling Costs amount from Form 6251, Part I, in the INTANGIBLE DRILLING COSTS field.

    24. Enter/verify the Other Adjustments amount from Form 6251, Part I, in the OTHER ADJUSTMENTS field.

    25. Enter/verify the Alternative Minimum Tax Foreign Tax Credit amount from Form 6251, Part II, in the ALT MIN FOREIGN TAX CR field.

    26. Enter/verify the Alternative Minimum Tax amount from Form 6251, Part II, in the ALTERNATIVE MINIMUM TAX field.

    27. If the taxpayer is under age 24, enter a "Y" , in the TAXPAYER UNDER AGE 24 field. (This information can be found Form 8814.)

    28. When applicable enter the manually computed Alternative Minimum Tax amount in the MANUAL ALT MIN TAX field.

    29. When all required fields have been verified/entered, press >F12< to commit and exit the window.

Net Investment Tax
  1. The NET INVESTMENT TAX window is used to compute/recompute changes to the net investment tax.

  2. To access the NET INVESTMENT TAX window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Other tax from the drop-down menu.

    3. Select Net inv tax from the pull-right menu.

  3. To compute/recompute net investment tax, take the following actions:

    1. Access the window as outlined in (2) above.

    2. Enter/verify the amount from Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, line 17 in the NET INVEST TAX PER RETURN field.

    3. Enter/verify the amount from Form 8960, line 8 in the TOTAL INVEST INCOME PER RETURN field.

      Note:

      The system populates the ADDITIONAL INVESTMENT INCOME field.

    4. Enter/verify the amount from Form 8960, line 11 in the TOTAL DEDUCTIONS field.

      Note:

      The system populates the RECOMPUTED NET INVEST INCOME TAX field.

    5. Enter/verify the amount from Form 8960, line 17 (if applicable) in the MANUAL NET INVEST INCOME TAX field.

    6. Press >F12< to commit and exit the window.

Other Taxes
  1. The TOTAL OTHER TAXES window is used to compute/recompute changes to Other Taxes.

  2. To access the TOTAL OTHER TAXES window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Tax computation from the drop-down menu.

    3. Select Other taxes from the pull-right menu.

  3. To compute/recompute other taxes, take the following actions:

    1. Access the window as outlined in (2) above.

    2. Enter/verify the Tax on Lump Sum Distributions amount from Form 4972, Tax on Lump Sum Distributions, in the ADDITIONAL TAXES PER RETURN field. If the LUMP SUM TAX window was accessed, the new recomputed additional tax displays. If the additional tax per return does not change, the ADDITIONAL TAXES RECOMPUTED field should equal the return amount.

    3. Enter/verify the amount of the additional tax from Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, Part I in the applicable PREMATURE DIST TAX (IRA) PER RETURN field. (IRA, or Simple)

    4. Enter/verify the amount of the additional tax from Form 5329, Part II in the applicable PREMATURE DIST TAX (EDU), (SIMPLE), (ARCHER MSA), (HSA), (5%) or (NQDC)PER RETURN field. (QTP/CESA)

    5. Enter/verify the amount of additional tax on excess contributions from Form 5329, Part III through Part VIII, in the EXCESS CONTRIBUTIONS TAX PER RETURN field.

    6. Enter/verify the amount of household employment tax from Form 1040 in the HOUSEHOLD EMPLOYMENT TAXES PER RETURN field.

    7. Enter/verify the amount of first time homebuyer repayment amount from Form 1040 in the FIRST TIME HOMEBUYER REPAY AMT PER RETURN field.

    8. Enter/verify the amount of additional medicare tax from Form 1040 in the ADDITIONAL MEDICARE TAX PER RETURN field.

    9. Enter/verify the amount of miscellaneous and/or Recaptured taxes from Form 1040, dotted portion of the Total Tax line, in the OTHER MISCELLANEOUS TAXES PER RETURN field.

      Caution:

      For TY 2014 and subsequent, changes were made in the Total Other Taxes window to add PER RETURN fields for SIMPLE, ARCHER MSA, HSA, 5%, and NQDC. The AUR system is unable to determine what type of miscellaneous tax was reported, in order to correctly display amounts in the appropriate PER RETURN and/or RECOMPUTED fields for SIMPLE, ARCHER MSA, HSA, 5%, and/or NQDC. If an amount was reported for any of these taxes, delete that amount from the OTHER MISCELLANEOUS TAXES C field and move it to the appropriate PER RETURN and/or RECOMPUTED field(s).

    10. Enter/verify the amount of uncollected ss/med tax on wages from Form 1040 or Form 8919, in the UNCOLLECTED SS/MED TAX ON WAGES PER RETURN field.

    11. Press >F12< to commit and exit the window.

Earned Income Credit (EIC)
  1. The EARNED INCOME CREDIT window is used to compute/recompute changes to EIC.

  2. The EARNED INCOME CREDIT window displays anytime a TC 764, 765, or 768 is present on the account, whether or not there is a change to AGI and/or earned income. It also displays if the filing status and income requirements for earned income credit computation are met.

  3. To access this window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Payments from the drop-down menu.

    3. Select Eic from the pull-right menu.

  4. When the taxpayer has indicated he or she does not qualify for EIC by entering "No" on Form 1040 on the Earned Income Credit line or if a condition in IRM 4.19.3.15.3, Earned Income Credit, applies; take the following actions:

    1. Enter a "Y" in the TP NOT QUALIFIED field when the taxpayer indicates he/she is not qualified for EIC.

    2. Press >F12< to commit and exit the window.

  5. Compute EIC when a "Y" is not entered in the T/P indicates not qualified box, take the following actions:

    1. Enter/verify the number of qualifying children in the NUMBER OF QUALIFYING CHILDREN field. Valid entries are 0, 1, 2, or 3. (If more than 3 qualify, enter 3.)

    2. Enter/verify the amount in the TOTAL EARNED INCOME field. This amount should include reported wages, salaries, tips, and other employee compensation. Refer to IRM 4.19.3.15.3, Earned Income Credit, for more information.

    3. Enter/verify the Investment income reported on the return in the INVESTMENT INCOME PER RETURN field. Refer to IRM 4.19.3.15.3, Earned Income Credit.

    4. Enter/verify the new manually computed EIC in the MANUAL EARNED INCOME CREDIT field when applicable.

    5. Press >F12< to commit and exit the window.

Additional Child Tax Credit
  1. The ADDITIONAL CHILD TAX CREDIT window is used to compute/recompute Additional Child Tax Credit.

  2. To access the ADDITIONAL CHILD TAX CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Payments from the drop-down menu.

    3. Select addl cHild tax from the pull-right menu.

  3. To compute the additional child tax credit, take the following actions:

    Note:

    If the taxpayer did not qualify for additional child tax credit during original processing or inadvertently omitted claiming the credit, you need to manually select the ADDITIONAL CHILD TAX CREDIT window.

    1. Enter/verify the amount of credit shown in the RETURN AMT field. This amount should match the TC 766 amount with Credit Reference 336 shown on the TAX ACCOUNT screen excluding the cents. The per return amount cannot exceed the taxpayers original credit amount.

    2. Enter/verify the SST and Medicare Tax withheld, including any U/R wage amounts, from Schedule 8812, Child Tax Credit, Part II with the amount shown in the SS/MED TAXES WITHHELD field.

    3. Enter/verify the total SE Deduction and Tip Tax amount(s) from Form 1040 plus any amount identified as uncollected taxes with the amount shown in the 1/2 SE DED/TIP TAX field. Enter a zero (0) when the taxpayer filed a Form 1040A.

    4. Enter the new manually computed additional child tax credit amount in the MANUAL ADDL CHILD TAX CREDIT field when applicable.

    5. Press >F12< to commit and exit the window.

Adoption Credit
  1. The ADOPTION CREDIT window is used to compute/recompute changes to adoption credit.

  2. To access the ADOPTION CREDIT window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select Credit from the drop-down menu.

    3. Select Adoption from the pull-right menu.

  3. To compute the adoption credit, take the following actions:

    1. Enter/verify the total number of adopted children from Form 8839, Part I in the TOTAL NUMBER OF ADOPTED CHILDREN LISTED ON FORM 8839, PART I.

    2. Enter the amount of qualified adoption expenses from Form 8839, as filed or previously adjusted, in the QUALIFYING ADOPTION EXPENSE field.

    3. Enter/verify the total amount of prior year carryforward credit from Form 8839 in the PRIOR YEAR CARRYFORWARD CREDIT field.

    4. Enter the adoption credit amount from Form 1040 in the ADOPTION CREDIT PER RETURN field.

    5. If the adoption credit was manually calculated, enter the amount in the MANUAL ADOPTION CREDIT field.

    6. Press >F12< to commit and exit the window.

Penalties
  1. The Penalties menu option allows access to the ESTIMATED TAX PENALTY and LIMIT PENALTIES windows. The ESTIMATED TAX PENALTY window is used to compute/recompute changes to estimated tax penalty. The LIMIT PENALTIES window is used to fully or partially abate Social Security Tip Tax Penalty and/or Failure to File Penalty and to suppress or enter the manual Negligence Penalty. The LIMIT PENALTIES window should be selected only after all other applicable windows in TAX COMPUTATIONS screen have been accessed.

  2. The NEGLIGENCE STATUS window displays when conditions warrant. See IRM 4.19.3.16.7, Determine Negligence Status Screen.

  3. To access the LIMIT PENALTIES window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select pEnalties from the drop-down menu.

    3. Select Limit penalties from the pull-right menu.

  4. Take the following actions to enter/verify the correct amounts:

    1. Enter/verify the manually computed additional Failure to File Penalty amount in the ADDITIONAL FAILURE TO FILE PENALTY field.

    2. Enter/verify the manually computed Social Security Tip Tax Penalty amount in the SSTIP TAX PENALTY field.

    3. Enter/verify the manually computed Negligence Penalty, or "0" (zero) to suppress the penalty, in the NEGLIGENCE PENALTY field.

    4. Enter/verify the manually computed Substantial Understatement Penalty, or "0" (zero), to suppress the penalty, in the SUBSTANTIAL UNDERSTATEMENT PENALTY field.

    5. Click in the PENALTY WAIVED field if the taxpayer requests that the penalty be waived and the request has been approved.

    6. Click in the PENALTY NOT WAIVED field if the taxpayer requests that the penalty be waived and the request has been denied.

    7. Press >F12< to commit and exit the window.

    In Response Phase: When a penalty has been limited, it stays limited as long as the manually input amount is present. To allow the system to compute the penalty it is necessary to remove the manually computed penalty, leaving the field blank.

  5. The ESTIMATED TAX PENALTY window displays when a TC 170 or TC 176 appears on the TAX ACCOUNT screen, see IRM 4.19.3.16.3, Estimated Tax (ES) Penalty.

Affordable Care Act (ACA)
  1. The ACA menu option allows access to the SRP (Shared Responsibility Payments) and PTC (Premium Tax Credits) windows.

Shared Responsibility Payments (SRP)
  1. For TY 2014, the SRP window is used to allow the SRP to be displayed on the CP 2000. The SRP window may need to be accessed when there was a prior adjustment to the SRP amount claimed on the original return or an error was made during processing of the original return.

  2. To access the SRP window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select ACA from the drop-down menu.

    3. Select SRP from the pull-right menu.

  3. When the window displays, enter/verify the per return amount (as originally filed or adjusted) in the SRP PER RETURN field.

Premium Tax Credit (PTC)
  1. The PTC window is used to adjust the Premium Tax Credit based on changes to the modified adjusted gross income. If there is no AGI change, do not recalculate PTC. Enter “PER RETURN” amounts from the Premium Tax Credit window in the corresponding fields in the “AMS AMOUNTS” column.

    Caution:

    Be alert for processing changes which added APTC/PTC. Math Error Code 558 may be present on these cases although Form 8962 was not filed with the return. Take actions to recalculate APTC/PTC and include on the notice, when appropriate.

  2. To access the PTC window, take the following actions:

    1. Select rV tax comp in the TAX COMPUTATIONS screen.

    2. Select ACA from the drop-down menu.

    3. Select PTC from the pull-right menu.

  3. To recalculate PTC take the following actions:

    Note:

    For TY 2014, Form 8962, Part 5, Alternative Calculation for Year of Marriage, is not included in AUR TRDB. If Part 5 information is needed for a recalculation it can be accessed on EUP.

    1. Screen the case to Return Value.

    2. Access the Premium Tax Credit window. The amount shown in the "MODIFIED AGI" field will be needed to recalculate PTC.

    3. Access IDRS.

    4. Access AMS.

    5. Access the TP’s account on AMS.

    6. Select ACA Tools.

    7. Select the "8962 PTC Calc" .

    8. Once AMS populates the PTC calculator worksheet with the TP’s information, input the "MODIFIED AGI" amount from AUR in the "Adjusted Gross Income" field of the PTC calculator worksheet and delete all other amounts present in the income section of the PTC calculator.

      Caution:

      If the fields are not changed to zeroes the AUR MAGI will duplicate amounts.

      Reminder:

      If the TP reports SS/RR, the SS/RR window MUST be worked (even if SS/RR is not an issue) in order for the MAGI to be correct.

      Note:

      If the TP provides new annual or monthly premium amounts or if there is a change to the filing status or number of exemptions, input the correct amount(s) in the PTC calculator worksheet.

    9. Scroll to the bottom of the worksheet, check the "calculate without CDR validation box" and click the "Calculate" button.

    10. Print the calculation, reset the PTC Calculator worksheet, and return to AUR.

      Exception:

      In some cases the change to MAGI does not cause a change to APTC/PTC. If there is no change to ATPC/PTC, do not print the calculation. Select the following standard case note to document the case: Change to AGI. Accessed AMS to recalculate PTC/APTC. No change to PTC or APTC.

    11. In the Premium Tax Credit window, verify/input the "PER RETURN" amounts for "TOTAL PTC" , "TOTAL ADVANCE PYMT OF PTC" , "NET PTC" and "EXCESS APTC REPAY" , as appropriate.

    12. Using the printed calculation from the AMS PTC calculator, enter amounts in the "AMS Amounts" column of the AUR Premium Tax Credit window for "TOTAL PTC" , "TOTAL ADVANCE PYMT OF PTC" , "EXCESS ADVANCE PYMT OF PTC" , "REPYMT LIMITATION" , and "EXCESS ADVANCE PYMT ABOVE LIMITATION" .

      Caution:

      These end results or "AMS Amounts" are the amounts from the AVS column.

    13. Continue with Return Value calculations. AUR will calculate the PTC change amount and include it in the Summary screen.

    14. Leave the printed AMS PTC calculation as part of the AUR case file.

      Note:

      For virtual cases print a Form 4251 as cover for AMS worksheet.

Assessments - Case Analysis/Responses

  1. The COMPUTE ASSESSMENT window is used when an account requires a manual adjustment.

    1. During the screening phase, access the COMPUTE ASSESSMENT window for the adjustment of W/H and/or excess SST/RRT when PC 20 is assigned to a case.

    2. During the response phase, access the COMPUTE ASSESSMENT window when a system generated PC cannot be used to close a case with an assessment.

      Note:

      If entering a PC 67 or 87 it is not necessary to access the COMPUTE ASSESSMENT window.

  2. To access/view the COMPUTE ASSESSMENT window, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Assessment from the drop-down menu.

  3. To commit/make a manual change to an assessment, take the following actions:

    1. Enter/verify the agreement date displayed in the CREDIT INTEREST DATE field, per IRM 4.19.3.20.10.1, The Assessment Window (credit interest date). Verify that this date reflects the correspondence date on the correspondence being used to make the assessment.

      Note:

      When inputting TC 290-0 to refile an ELF response, delete the CREDIT INTEREST DATE.

    2. Enter/verify the correct Transaction Code and money amount are shown in the TRANS CODE and TRANS AMT fields.

    3. Enter/verify that the correct Source Code has been entered in the SRCE CD field.

    4. Enter/verify the Reason Codes in the REASON CD field. This field must contain an entry. One to four reason codes may be used.

    5. Enter/verify that the correct Hold Code has been entered in the HOLD CD field, if applicable.

    6. Enter/verify that the correct Priority Code has been entered in the PRIORITY CD field, if applicable.

      Note:

      The File Location Code (FLC) field displays a 98 if an International or 66 if a Puerto Rico return was filed.

    7. Enter/verify the correct Credit Reference Number(s) and money amount are shown in the REFERENCE CD and REFERENCE AMT fields.

      Note:

      Manually enter or correct Credit Reference Number (CRN) 680 on CP 2501, partially agreed CP 2000, and Letter 1151C responses.

      Note:

      If more than eight Credit Reference Numbers are necessary, enter the assessment on IDRS following campus directions.

    8. Enter a "Y" , "N" , or "R" in the SOURCE DOCUMENT ATTACHED? field.
      Y - Source Document Attached
      N - No Source Document Attached
      R - Source Document Retained

    9. Enter remarks in the REMARKS field. This field must contain an entry and should explain the adjustment in some way (e.g., AUR ADJ).

    10. Verify that an "A" is displayed in the AUTO/MANUAL IND field. The system automatically creates an assessment record on all cases up until a locally determined date but no later than February 28, 20XX. An assessment record is not be printed if it is later than the specified date or if a manual assessment is required. Click in the AUTO/MANUAL IND field to change the displayed "A" to an "M" that creates a manual assessment record.

Changing Entries/Making New Entries

  1. It may be necessary to make a change to an entry in any of the fields of the COMPUTE ASSESSMENT window when making an adjustment to the case.

  2. Clear the field before making the entry. If a field, (other than the transaction code/amount or the reference code/amount), such as the date, reason code, blocking series, etc. contains an entry that must be changed, take the following actions:

    1. Click on the field containing the entry that needs to be changed.

    2. Press >F5< to clear the field.

      Caution:

      Use of the >F3< key, instead of >F5<, causes the window to freeze.

    3. Make the appropriate entry.

  3. If a field such as the transaction code/amount or the reference code/amount contains an entry that needs to be changed, delete the record before making the new entry as follows:

    1. Click on the field that contains the entry to be changed.

    2. Press >F3< to delete the record.

    3. Make the appropriate entry.

  4. To enter new transaction code/amounts or reference code/amounts in a field that does not already contain an entry, take the following actions:

    1. Click on the last field that contains an entry.

    2. Press >Enter<.

    3. Make the appropriate entry.

  5. After all required entries have been made, press >F4< to commit the changes.

Process Code (PC) 20 Assessments

  1. You must complete/commit the TAX COMPUTATIONS screen and access the COMPUTE ASSESSMENT window before the system allows input of PC 20.

  2. After completing the tax computations, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Assessment from the drop-down menu.

  3. Input/verify the appropriate entries contained below:

    Field Correct Entry
    BLOCK NUM
    • 50 for U/C W/H or excess SST/RRT

    • 55 for O/C W/H or excess SST/RRT

    TRANS COD 290
    TRANS AMT 0.00
    SRCE CD 2
    REASON CD
    • 51 for W/H

    • 55 for excess SST/RRT

    PRIORITY CD 3 for refund adjustments (otherwise leave blank)
    REFERENCE CD
    • 806 and applicable REFERENCE AMT for U/C W/H

    • 807 and applicable REFERENCE AMT for O/C W/H

    • 252 and applicable REFERENCE AMT as a positive amount for U/C excess SST/RRT or as a negative amount for O/C excess SST/RRT

    SOURCE DOCUMENT ATTACHED
    • Y - for paper filed returns

    • N - for ELF returns

    REMARKS Example: URP ADJ or AUR ADJ

    Note:

    If you are allowing the taxpayer additional W/H or additional excess SST/RRT, make a note of the amount and payer before you begin creating a Letter 2893C. This information may be needed as an entry on the letter and the LETTER window hides the CASE ANALYSIS screen.

    Note:

    Do not enter a CREDIT INTEREST DATE on W/H and/or SST adjustments with a TC 290 0.00 (zero). Leave the IRS RECD DATE field blank.

Correspondex Letters

  1. The CREATE CORRESPONDEX LETTER window is used to prepare a correspondex system letter or to leave a record of a manually prepared letter that has been sent to the taxpayer(s), payer(s) and/or third party(ies).

  2. To access the CREATE CORRESPONDEX LETTER window, take the following actions:

    1. Select reF tools from the CASE ANALYSIS window.

    2. Select Letter from the drop-down menu. The CORRESPONDEX LETTER window displays.

  3. The CORRESPONDEX LETTER window has five menu options:

    • CREATE

    • EDIT

    • DELETE

    • DISPLAY

    • PRINT

  4. There are two types of letters that can be selected:

    • CORRESPONDEX LETTERS

    • MANUAL LETTERS

  5. Select one of the letters listed in the CORRESPONDEX LETTERS to issue the letter through the AUR system

  6. Select one of the MANUAL LETTERS listed to create a record of a letter sent that is not listed as a correspondex letter. The Manual Letters field reflects the manual letter numbers used by the local campus.

  7. Only one type of letter can be selected and sent to a taxpayer or representative per session. Each letter can, however, be sent to more than one address. Multiple letters can be sent to an employer(s) and/or payer(s) during one session.

Create Letter Window

  1. When the CREATE option is selected in the CREATE CORRESPONDEX LETTER window, the ADDRESS INFORMATION window displays.

  2. All available address information for the SSN displays in the ADDRESS INFORMATION window. The address from the Taxpayer Information File (TIF) displays first, followed by the POA address (if applicable). Business address information displays only when the Letter 2625C is selected.

    Note:

    Make any address additions for POA, business or ex-spouse, etc. through the UPDATE ADDRESS window first.

  3. The cursor appears in the field to the left of the 1st name line information. To select which address(es) to send the letter to, take the following actions:

    1. Click on "Y" in the field to the left of the 1st name line information to non-select the address displayed in the window if you do not want them to receive the letter.

    2. Use the down arrow key to scroll through all applicable addresses.

    3. Press >F12< to commit and exit the window. The CREATE LETTER window displays.

  4. The CREATE LETTER window displays the following information:

    • SSN

    • LETTER NUMBER

    • NUMBER OF COPIES

    • LETTER ADDRESS

    • LETTER PARAGRAPHS

    • LETTER FILL-IN

    There is a DISPLAY menu option that can be used to display the letter once it is complete.

  5. The LETTER ADDRESS section of the window displays the selected address type(s) and the salutation.

  6. The LETTER PARAGRAPHS section shows the SP (select paragraph), P# (paragraph number or letter), PARAGRAPH HINT TEXT, and the PARAGRAPH TEXT.

  7. The LETTER FILL-IN section shows the fill-in number to be entered into the TEXT field.

  8. When the window displays and entry is necessary, the cursor is in the TEXT field of the LETTER FILL-IN area.

Letterhead Information

  1. The salutation is automatic based on the information contained in the case. Many entries for the letterhead are also automatic and display in the TEXT field of the LETTER FILL-IN section of the window.

  2. If the displayed information is correct, press >Enter<. The text for the next fill-in displays. Continue to press >Enter< until the SSN, tax year, tax form and contact information has been confirmed.

    Note:

    Some letters allow you to enter more than one tax year. Press >Enter< each time the system prompts you for another tax period if no other tax years are needed. Otherwise, enter the applicable tax year(s).

  3. Per campus direction, certain text may be required to be entered manually. Manual entries must be typed using the same format that is displayed in the hint text, e.g., all upper or lower case letters, etc. Follow the actions listed below to make manual entries:

    1. Enter your name or the name of the locally designated contact person.

    2. Enter the earliest time the contact person can be reached.

    3. Enter the latest time the contact person can be reached. Include the appropriate time zone (EST, PST, etc.).

    4. Enter the area code and phone number of the contact person.

    5. Enter the area code and phone number of the local fax.

    6. Press >Enter<.

    Note:

    If the text fill-ins are system generated and you change the contact person's name, etc., the system reverts back to the system generated information for subsequent correspondence.

  4. After all letterhead information has been entered the cursor moves to the SP (select paragraph) field in the LETTER PARAGRAPHS section.

Selecting, Creating, Editing and Deleting Letter Paragraphs

  1. The LETTER PARAGRAPHS section of the window contains the SP (select paragraph), the P# (paragraph number or letter), the PARAGRAPH HINT TEXT and the PARAGRAPH TEXT fields. Use this section of the window to select the pre-composed paragraphs. The system automatically generates some paragraphs.

  2. To view the text of a paragraph, take the following actions:

    1. Select the brief description in the PARAGRAPH HINT TEXT field, the text appears in the PARAGRAPH TEXT field.

    2. Scroll through the PARAGRAPH HINT TEXT to view the text of other paragraphs.

  3. To return to the SP field, click in the blank field under the last paragraph number/letter input (or in the first field if no paragraphs were input).

  4. To select a pre-composed paragraph, click on the desired paragraph number/letter in the P# field or enter the desired number/letter in the SP field and press >Enter<.

    Note:

    When composing the letter, the system automatically sequences the auto-generated and selected paragraphs in the proper sequence. The system may also generate some related paragraphs based on the selections made by the TE. The system does not select all applicable paragraphs.

  5. If the selected paragraph(s) require fill-in information, the cursor moves to the TEXT field of the LETTER FILL-IN section. The required entry(ies) must be completed before another paragraph can be selected. When the cursor moves to a fill-in area, applicable hint text displays at the bottom of the screen. Several fill-in fields are automatically completed by the system and does not allow a manual entry to be made.

    Note:

    Fill-in text should be typed in the same manner as it is shown in the hint text at the bottom of the screen.

  6. When the content of one of the pre-composed paragraphs is not sufficient, use an open paragraph and follow the actions listed below:

    1. Select or enter the open paragraph number/letter.

    2. A LOCAL PARAGRAPHS window displays. The cursor is located in the NUM (Paragraph Number) column.

    3. Use the Up and Down arrow keys to scroll through the locally available paragraphs.

    4. If an existing local paragraph is suitable, place the cursor on its assigned number and press >Enter< followed by >F12< to commit and exit the window.

    5. If none of the available local paragraphs are sufficient, compose a new paragraph by clicking on the Create Paragraph box. This launches the CREATE/EDIT PARAGRAPH window.

    6. Enter the appropriate text using upper and lower case letters as needed. The system allows up to 384 characters to be entered.

    7. When finished, click on "OK" . The Spellcheck window displays.

    8. Click >Spellcheck< to begin reviewing the paragraph; make changes as necessary.

  7. When an open paragraph does not provide sufficient space, you may include a floating paragraph.

    1. Floating paragraphs can contain up to 384 characters and can be positioned anywhere within the body of the letter.

      Exception:

      A floating paragraph cannot be used as the opening or closing paragraph or as an enclosure

    2. Although the system arranges the selected paragraphs in the proper order, a floating paragraph remains in the position where it is placed. Place the cursor in the SP field of the paragraph you want the floating paragraph to follow and press >F2< or click on the * in the P# field.

    3. The LOCAL PARAGRAPHS window displays and the cursor is in the NUM column.

    4. Once placement is set, follow the procedures above to enter paragraph.

    .

  8. When you are finished selecting and/or composing paragraphs, review the letter. To review, select the DISPLAY box and use the Page Up and Page Down keys to scroll. If corrections are needed, click on "OK" or "Cancel" to return to the CREATE LETTER window.

  9. Make any corrections or changes to the letter at this stage. It is more difficult to make changes or corrections after the letter has been formatted.

  10. To delete a paragraph, select the letter or number of the paragraph to be deleted in the SP field and press >F3<.

  11. To change a fill-in, open or floating paragraph; select the paragraph number/letter in the SP field that needs to be changed and press >Enter<. Use the >Backspace< and >Delete< keys to erase the incorrect entry(ies).

  12. To change a previously selected local paragraph, scroll through the locally available paragraphs and select the correct local paragraph.

  13. To change a paragraph that you created, select the "Create Paragraph" box to launch the CREATE/ EDIT window. Make any changes by using the >Backspace< and/or >Delete< keys to erase the incorrect entry(ies).

  14. At this stage the only letterhead information that can be corrected is the salutation (e.g., the taxpayer name(s), business name or representative name). To correct any of this information select the salutation and use the >Backspace< and >Delete< keys to erase the incorrect information and then type in the corrected text.

  15. Format the letter AFTER all corrections have been made. To format the letter press >F12<. The following message displays: NOTE: LETTER HAS BEEN CREATED AND SAVED.

  16. Once the letter has been formatted the ATTACHMENT ADDRESS window displays. This window allows additional information, including copies of tax returns, tax law information, etc., to be included as an attachment to the created letter. If attachments are needed, follow the actions listed below:

    1. Scroll through the ATTACHMENT ADDRESS section using the Up and Down arrow keys until the address(es) needing the attachment(s) display(s).

    2. Type a "Y" in each address that requires an attachment(s).

    3. Press >F12<. The following alert message displays: NOTE: ENCLOSURE ATTACHMENT FORM PRINTING AT DEFAULT PRINTER. Retrieve the printed sheet and include it with the attachment in the case.

    4. Exit the CREATE CORRESPONDEX LETTER window if you are finished creating/correcting the letter(s).

    If there is no attachment, take the following actions:

    1. Press >F8< to exit this window. The current letter is completed, and the CREATE CORRESPONDEX LETTER window displays so any additional letters may be created.

    2. Exit the CREATE CORRESPONDEX LETTER window if you are finished creating/correcting the letter(s).

  17. To view a created correspondex letter, take the following actions:

    1. Select the reF tools from the CASE ANALYSIS screen.

    2. Select Letter from the drop-down menu. The CREATE CORRESPONDEX LETTER window displays.

    3. Use the cursor to select the field next to the letter you wish to view.

      Note:

      A previously created letter displays a "Y" in this field.

    4. Select the DISPLAY box or press >ALT< and "d" simultaneously.

    Note:

    For Letter 2625C, a separate window showing the business address displays. Select the addresses you want to view.

  18. To edit a letter after it has been formatted, take the following actions:

    1. Select the reF tools from the CASE ANALYSIS screen.

    2. Select Letter from the drop-down menu. The CREATE CORRESPONDEX LETTER window displays.

    3. Select the field next to the correspondex or manual letter that you want to edit.

    4. Click on "EDIT" .

    5. Press >F12<. All windows that pertain to the correspondex letter displays and you can make the necessary changes.

  19. To delete a letter, take the following actions:

    1. Select the reF tools from the CASE ANALYSIS screen.

    2. Select Letter from the drop-down menu. The CREATE CORRESPONDEX LETTER window displays.

    3. Select the field next to the correspondex or manual letter that you want to delete.

    4. Select "DELETE" . The DELETE LETTER window displays.

    5. Click "OK" to delete the letter.

  20. To print a letter, take the following actions:

    1. Select the reF tools from the CASE ANALYSIS screen.

    2. Select Letter from the drop-down menu. The CREATE CORRESPONDEX LETTER window displays.

    3. Select the field next to the correspondex or manual letter that you want to print.

    4. Choose the ADDRESS SELECTION window.

    5. Select the PRINT box.

    6. Type a "Y" in the desired address(es) followed by >F12<.

    7. Click "OK" . The letter prints at the default printer.

Completing Case Analysis

  1. If, after analyzing the information and tax return information and TAX COMPUTATIONS screen it is determined that a notice is to be issued, complete the DISPLAY NOTICE SUMMARY screen.

Using the Display Notice Summary Screen

  1. The DISPLAY NOTICE SUMMARY screen is used to enter the reported amount for each income type and displays the information that is included on the notice. The information is shown in different sections of the screen.

    • CHANGED ITEMS

    • PROPOSED CHANGES TO SCHEDULE A ITEMIZED DEDUCTIONS

    • PROPOSED CHANGES TO TAX COMPUTATION

    • INDICATORS

    • SELECTED PARAGRAPHS

    • BODY PARAGRAPHS

    • PAYER INFORMATION

    • TAXPAYER NOTICE ADDRESS

  2. To access the DISPLAY NOTICE SUMMARY screen, select Summary from the CASE ANALYSIS screen.

  3. The cursor appears in the RETURN column in the first line. If there are U/R items, enter the amount shown on the return. This is a required field; you must make an entry in order to exit this screen. To scroll through the field, press the Up and Down arrow keys. After all reported amounts are input, press >Enter<.

  4. The DISPLAY NOTICE SUMMARY screen contains three indicator fields. Refer to the chart below for an explanation of the fields.

    Indicator Field Explanation
    Notice Indicator Used to input the appropriate notice type and sets specific body paragraphs to be included in the notice mailed to the taxpayer. See IRM 4.19.3.18.3, Notice Summary Screen, for applicable codes.
    Amended Indicator Used when a notice needs to be amended. The literal "A" must be entered in the AMENDED INDICATOR field. Otherwise, leave blank.
    Sort Indicator Sort codes may be used when special handling by the Clerical function is required. Up to five sort codes may be used. See IRM 4.19.3, IMF Automated Underreporter (AUR), for applicable codes.
  5. The AMOUNT PREVIOUSLY PAID and the MANUAL INTEREST amount can be entered on the DISPLAY NOTICE SUMMARY screen. Use the manual interest field to enter manual interest only. The latest amount(s) committed, on either window, is saved to both, e.g., if the TE enters and commits an AMOUNT PREVIOUSLY PAID of $100 and a MANUAL INTEREST amount of $500 on the DISPLAY NOTICE SUMMARY screen, both the DISPLAY NOTICE SUMMARY and TAX COMPUTATIONS screens reflect those amounts.

  6. To access the EZ information screen from the DISPLAY NOTICE SUMMARY screen, click on the box titled, tax form number.

  7. To display more detailed information regarding Schedule A, click on the box that reads CLICK FOR SCH A.

  8. To display additional credit, other tax and other penalty information, click on the applicable line number on the left hand side of the screen.

  9. The SELECTED PARAGRAPHS section displays auto generated and selected paragraphs for the case. You may add/review the paragraph numbers, compose an open paragraph or view the text of the paragraphs being sent. Verify all entries, information returns, the income/deduction types, return and IRP amounts and the increase/decrease amounts.

    Note:

    Body paragraphs are changed based on the entry of Notice Indicators. To view a Body Paragraph, click in the box of the paragraph you wish to view. The BODY PARAGRAPH TEXT box displays.

  10. After verifying the information contained on the DISPLAY NOTICE SUMMARY screen, press >F4< to commit the entries and >F8< to exit the window.

  11. When a notice needs to be amended, the literal "A" must be entered in the AMENDED IND field.

Selecting, Viewing and Deleting Notice Paragraphs

  1. Paragraphs may be added to the CP 2000 or CP 2501 notice. The SELECT NOTICE PARAGRAPH window is used to select paragraphs. Selected paragraphs display in the SELECTED PARAGRAPH section on the DISPLAY NOTICE SUMMARY screen. For a complete list of paragraphs see Exhibit 4.19.3-7, CP Paragraphs.

  2. Certain adjustments made to the taxpayer's account cause automatic paragraphs to be generated by the system. Automatic paragraphs are identified on the DISPLAY NOTICE SUMMARY screen by an asterisk (*) in the AUTO field and cannot be manually selected. Most automatic paragraphs do not display in the SELECTED PARAGRAPH NUMBER field.

  3. In addition to the available system paragraphs, campus AUR Coordinators can create paragraphs that address local issues. These are listed under LOCAL.

  4. To add paragraphs to a notice, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select nOtice para from the drop-down menu. The SELECT NOTICE PARAGRAPH window displays along with a brief description of each available paragraph.

  5. A maximum of 24 numbered paragraphs for the notice may be selected. When necessary, a special 999 paragraph may be added.

  6. Select a paragraph number by typing its number in the SELECTED PARAGRAPH NUMBER field on the left hand side of the screen and then press >Enter<.

  7. An error message displays if the paragraph number entered is invalid. Press >F3< to remove invalid numbers and re-enter a valid number.

  8. The available paragraph numbers display in the P/N field. Scroll through the paragraph numbers and select the appropriate paragraphs from this field taking the following actions:

    1. Press >F12< or use the mouse to move the cursor to the P/N field.

    2. Move the cursor to the paragraph number you wish to select by pressing the >Up< and >Down< arrow keys and by pressing >Enter<.

    3. Place the cursor in the SP# field next to the paragraph number to select and click the left mouse button.

  9. You may view the complete text of a paragraph(s) by accessing the NOTICE PARAGRAPH REFERENCE window, and clicking on the description text for the paragraph you would like to view. While in a PARAGRAPH SUMMARY window, pressing the >F6< key brings up a blank COMPLETE PARAGRAPH TEXT window. Input the paragraph number you want to view and press >Enter<. The selected paragraph text displays in the COMPLETE PARAGRAPH TEXT window.

  10. To view additional paragraphs while the COMPLETE PARAGRAPH TEXT window is displayed, press >F5< to clear the paragraph number. Enter the new paragraph number and press >Enter<.

  11. The SELECTIVE PARAGRAPHS field contains the various income categories. All paragraphs pertaining to the specific income type display when you click on the desired category. Use the SELECTIVE PARAGRAPHS field when trying to determine which paragraph(s) need to be sent with specific income types.

  12. To view selective paragraph listings, click the specific income type you wish to view and click ENTIRE LST to return to the SELECT NOTICE PARAGRAPH window.

  13. Use the special 999 paragraph when additional information needs to be sent to the taxpayer that is not included in the numbered paragraphs. To compose a 999 or special paragraph, take the following actions:

    1. Click the THIS BOX TO ENTER OR VIEW SPECIAL TEXT in order to view the special paragraph. A pop-up window displays.

    2. Enter the text of the special paragraph. The text automatically wraps at the end of each line.

      Note:

      The number of characters allowed has been increased to 2000. Due to the increased number of characters multiple paragraphs can be sent if needed.

      Caution:

      It is important that the carriage return IS NOT used except to separate paragraphs.

    3. Click on "OK" when finished entering the text. The Spell Check window displays.

    4. Click on the >Spell Check< button to begin checking your text. Make changes as needed.

  14. To delete text from a special paragraph, place the cursor behind the characters to be deleted and press the >Backspace< key OR place the cursor in front of the characters to be deleted and press the >Delete< key and click "OK" .

  15. Most paragraphs have the option of being toggled off. To prevent a selected paragraph from appearing on the notice, the record must be toggled off (deleted). To toggle off a selected paragraph, place the cursor on the number of the paragraph you wish to delete in the "Selected Paragraph Number" field and press >F3<.

    Note:

    The paragraph is not removed by merely backspacing or deleting the paragraph number.

  16. To delete a 999 or special paragraph, click the THIS BOX TO DELETE SPECIAL PARAGRAPH box at the bottom of the applicable PARAGRAPH window.

    Note:

    If any of the original U/R issues change after the paragraphs have been selected and committed, you must return to the PARAGRAPH window to delete, add or modify any impacted paragraphs.

Process Codes (PC)

  1. The PROCESS CODE window displays when the Process cd option is selected from the CASE ANALYSIS or DISPLAY NOTICE SUMMARY screen.

  2. To input a PC, take the following actions:

    1. Select Process cd from the CASE ANALYSIS or DISPLAY NOTICE SUMMARY screen.

    2. Enter the appropriate PC.

    3. Press >F4< to commit.

      Note:

      The PC entered replaces the pending PC.

    4. Press >F8< to exit.

    Note:

    To ensure consistency between the PC and the assessment, a warning message displays. Take the appropriate action.

  3. If you enter a PC that is inconsistent with the U/R amount or the screens accessed, or is inconsistent with the last posted PC, an error message displays. To remove an invalid PC, press >F5< to delete it. Enter the appropriate PC or rework the case as necessary.

  4. To select a valid PC from the VALID CODES window, take the following actions:

    Note:

    Do not just hit the >Enter< key, this will cause the first PC listed to post to the account and may cause an incorrect closure.

    1. Click on the applicable PC.

    2. Press >Enter<.

    3. Press >F4< to commit.

    4. Press >F8< or Exit, to exit the PROCESS CODE window.

  5. The PROCESS CODE LOOKUP window is used to view the process codes that can follow the current PC. Up to 100 codes can be displayed. To display the PROCESS CODE LOOKUP window, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select pc looKup from the drop-down menu.

    3. Enter the existing PC. The allowable process codes that can follow displays.

    4. Exit the window after viewing the allowable codes.

Releasing a Work Unit

  1. A work unit must be released when all the cases in the work unit are complete. To release a work unit, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Work unit from the drop-down menu.

    3. Select Release from the pull-right menu. The RELEASE WORK UNIT window displays with the cursor in the BATCH field.

    4. Enter the batch number of the work unit to be released. The cursor moves to the WORK UNIT field.

    5. Enter the work unit number. The system checks to verify that all cases in the work unit have been completed with a PC and there are no: New Transactions received on the TAX ACCOUNT screen, Payer Agent information received, or New Correspondence received. As these cases are released, the system performs validity checks for each SSN (case) in the work unit.

      Note:

      If there is a discrepancy, the CASES IN ERROR window overlays the RELEASE WORK UNIT window, showing the SSN(s) of the cases in error. The work unit cannot be released until all error conditions are corrected. See (3) below, for error conditions and the action required to correct each one.

    6. If there are no cases in error, or when all error conditions have been corrected, the cursor moves to the RELEASE field. Enter "Y" in the RELEASE field.

    7. Press >F4< to commit. A message displays indicating the records have been committed.

    8. Press >F8< to exit. When the release of a work unit is complete, the UID is removed, indicating no ownership.

    Note:

    During the response phase, if research is requested on a case(s) IPC 3A, 6A, or 8A, the UNIT RESEARCH SUSPENSE window overlays the RELEASE WORK UNIT window. These cases are systemically moved to the Unit Suspense batch and must be physically removed from the work unit.

  2. The system performs a validity check on all cases in a work unit that is being released. The CASES IN ERROR window displays showing the SSNs and CSNs of any cases in error.

  3. Review any cases that appear in the CASES IN ERROR window. The field to the left of the SSN field allows you to scroll through the SSNs listed using the Up and Down arrow keys. For assistance in correcting common errors, refer to the table below.

    Error Message Necessary Action
    NO PC Enter a valid PC when no PC has been entered. Re-enter the PC when a change has been made to the case after the initial PC was input.
    NEW TRANS Go to the TAX ACCOUNT screen; remove the asterisk (*) on each new transaction and then rework the case as necessary.
    PAYER AGENT Review the Payer Agent information and rework the case as required.
    CORR RECD Indicates that new correspondence has been received on the case. Associate the response with the case and rework as needed.
  4. Be sure to annotate the SSNs and error of the case and return to the CASE ANALYSIS screen to correct any discrepancies. If there is more than one error it may be helpful to print the CASE IN ERROR window. Exit the CASES IN ERROR window and the RELEASE WORK UNIT window; the CASE ANALYSIS screen displays. After all cases in the work unit have been corrected, re-select the RELEASE WORK UNIT window using the steps in (1) above.

  5. During the response phase the RELEASE WORK UNIT/UNIT RESEARCH SUSPENSE UNIT window displays when the RELEASE WORK UNIT is committed and one of the cases in the unit contains a research PC. The system rebatches the case(s) into the appropriate unit research suspense batch and transfers the case to the user's UID. Pull these cases from the work unit and file them with your unit suspense work; then exit the windows.

Transferring a Work Unit

  1. Based on the assigned user profile the Transfer Work Unit option may or may not be available.

  2. When a work unit is transferred, to another TE or Manager, the system moves all the cases in the work unit from the original batch to unit suspense. The cases are no longer part of the batch and cannot be returned to their original batch or within a work unit and must be released individually. Use this option to transfer a work unit from the batch when the batch needs to be released and the work unit is not complete.

    Note:

    Each case from the transferred work unit has to be accepted individually. If the transferred work unit needs to be updated again, each case has to be updated individually. Transferred work units must have the PC on each case updated before release.

  3. To transfer a work unit, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Work unit from the drop-down menu.

    3. Select Transfer from the pull-right menu. The TRANSFER WORK UNIT window displays, with the cursor in the BATCH field.

    4. Enter the five-digit batch number. The cursor moves to the WORK UNIT field.

    5. Enter the two-digit work unit number. The cursor moves to the TO UID NUMBER field.

    6. Enter the new UID number.

    7. Press >F4< to commit.

    8. Press >F8< to exit.

Accepting Transferred Work Units

  1. When a work unit has been transferred the system moves all the cases in the work unit from the original batch to unit suspense. The cases are no longer part of the batch and cannot be returned to their original batch or within a work unit and must be accepted individually.

    Note:

    If the transferred work unit needs to be updated again, each case has to be updated individually.

  2. To accept a work unit(s) that has been transferred to you, take the following actions:

    1. Select cOntrol from the CASE ANALYSIS screen.

    2. Select Work unit from the drop-down menu.

    3. Select Transfer from the pull right menu.

    4. Select aCcept transfer. The ACCEPT TRANSFERS window displays. It lists the old batch numbers along with the SSNs of each case in the work unit(s) to be accepted. (It may also include the SSNs of any other cases that have been transferred to you from another UID.)

    5. Type "Y" in the accept field on the right side of the screen for each case you are accepting or enter the SSN in the SSN TO ACCEPT box for individual cases.

      Note:

      Verify the SSN before entering the Commit key. The system does not prompt the user when an SSN that is not shown on the ACCEPT TRANSFERS window is entered.

    6. Press >F4< to commit.

    7. Press >F8< or Exit.

    Note:

    Each case in the transferred work unit must be released individually after it is worked using the RELEASE CASE window.

  3. You can also accept a work unit(s) that has been transferred to you by taking the following actions:

    1. Select cOntrol from the AUR Main menu.

    2. Select Work unit from the Control menu.

    3. Select Transfer from the drop-down menu.

    4. Select Accept from the pull right menu. The ACCEPT TRANSFERS window displays. It lists the old batch numbers along with the SSNs of each case in the work unit(s) to be accepted. (It may also include the SSNs of any other cases that have been transferred to you from another UID.)

    5. Type "Y" in the accept field on the right side of the screen for each case you are accepting or enter the SSN in the SSN TO ACCEPT box for individual cases.

      Note:

      Verify the SSN before entering the Commit key. The system does not prompt the user when an SSN that is not shown on the ACCEPT TRANSFERS window is entered.

    6. Press >F4< to commit.

    7. Press >F8< or Exit.

    Note:

    Each case in the transferred work unit must be released individually after it is worked using the RELEASE CASE window.

Updating a Work Unit

  1. Based on the assigned user profile the Update Work Unit option may or may not be available.

  2. When a work unit is updated to another TE, the system moves the entire work unit from the originally assigned TE to updated UID. The cases remain a part of the original batch and work unit. Use this option to transfer a work unit when the work unit must be completed by another TE.

    Note:

    The work unit can be released normally by the TE it was updated.

  3. To update a work unit, take the following actions:

    1. Select cOntrol from the AUR MAIN MENU 20XX screen.

    2. Select Work unit from the CONTROL MENU 20XX SCREEN.

    3. Select Update UID from the drop down menu.

    4. Select SSN from the pull right menu. The UPDATE WORK UNIT UID 20XX window displays with the cursor in the BATCH field.

    5. Enter the five digit batch number. The cursor moves to the WORK UNIT field.

    6. Enter the two digit work unit number. The CURRENT UID NUMBER field auto populates with the current UID. The cursor moves to the NEW UID NUMBER field.

    7. Enter the new UID number.

    8. Press >F4< to commit.

    9. Press >F8< or Exit.

    Note:

    The work unit can be worked by the TE without having to assign the work unit.

Controlling Individual Inventory

  1. Before any action can be taken on a case, it must be assigned to your UID.

Assigning Cases

  1. To assign a case to your UID/workload use the ASSIGN CASE window. Cases must be assigned to the UID before any changes can be made. Examples of when this option might be used are to:

    • Correct an error

    • Rework a case that has been released either individually or in a work unit

  2. To assign a case, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select Assign from the pull-right menu. The ASSIGN CASE window displays, with the cursor in the SSN field.

    4. Enter the SSN of the case to be assigned.

    5. Press >F4< to commit. A message displays indicating the records have been committed.

    6. Press >F8< to exit.

  3. To view a list of the cases currently assigned to you, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select cases assIgned from the pull-right menu. The CASES ASSIGNED window displays.

    4. Press the >Up< and >Down< arrow keys or scroll bar to scroll through the assigned cases.

Releasing Cases

  1. To release a case that is assigned to a User, use the RELEASE CASE window. To release a case, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select Release from the pull-right menu. The RELEASE CASE window displays, with the cursor in the SSN field.

    4. Enter the SSN of the case to be released. The system checks to verify certain conditions.

      Note:

      If the system identifies a discrepancy, the ERROR window overlays the RELEASE CASE window (an asterisk (*) displays in the error condition column). The case cannot be released until all error conditions are resolved. See (3) below, for a complete list of error conditions and the action required to correct each one.

    5. If the case being released belongs to a batch assigned to the unit it should be returned to the batch in CSN order. If the batch displayed is a Unit Suspense batch type, the work unit and sequence number is blank. After releasing a case in unit suspense, place the case in the designated area for clerical retrieval.

    6. If there are no errors on the case, or when all error conditions have been corrected, press >F4< to commit. A message displays indicating the records have been committed.

    7. Press >F8< to exit.

  2. The system performs a validity check on the case that is being released. The ERRORS window displays when there is a discrepancy.

  3. Review the error message(s) and take corrective action. Common error messages and solutions are listed below.

    Error Message Required Action
    NO PC Enter PC when no PC is entered. Re-enter PC when a change has been made to the case after the initial PC was entered.
    NEW TRANS Go to the TAX ACCOUNT screen, remove the asterisk (*) on each new transaction and re-work the case as needed.
    PAYER AGENT Review the Payer Agent information and re-work the case as necessary.
    DEFECT CD The manager or lead must remove the defect indicator from the case.
    CORR RECD Correspondence related to the case has been received. Associate the response with the case and re-work as needed.
    SPEC PARA A special paragraph is present. Refer the case to the manager or lead to review the special paragraph.
    OVER TOLRNC The tax increase is over ≡ ≡ ≡ ≡ . Refer the case to the manager or lead to review the tax increase.

    Annotate the error and return to the CASE ANALYSIS screen to correct applicable discrepancies. Exit the ERRORS window and the RELEASE CASE window.

  4. During the response phase, the RELEASE WORK UNIT/UNIT RESEARCH SUSPENSE UNIT window displays when the RELEASE WORK UNIT is committed and one of the cases in the unit contains a research PC. The system rebatches the case(s) into the appropriate unit research suspense batch and transfers the case to the user's UID.

Transferring Cases

  1. It may be necessary to transfer a case to the unit suspense batch, such as while waiting for assistance on the case or when another User needs to work a case. The system moves the case from the current batch into unit suspense when a case is transferred. An individual case may be transferred to you or to your manager or lead. Take the following actions to transfer a case:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the Control menu.

    3. Select Transfer from the drop-down menu.

    4. Select Transfer from the pull-right menu. The TRANSFER CASE window displays, with the cursor in the SSN field.

      Note:

      If transferring while in the CASE ANALYSIS screen the SSN auto populates.

    5. Enter the UID number to which the case is to be transferred.

    6. Press >F4< to commit.

    7. Press >F8< to exit.

Accepting Transferred Cases
  1. A case that has been transferred to a User must be accepted before it can be worked. Before accepting a case transfer, the physical case should be in the User's possession. To accept a transferred case, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select Transfer from the pull-right menu.

    4. Select Accept from the pull-right menu. The ACCEPT TRANSFERS window displays showing individual cases that have been transferred to your UID. The cursor is in the SSN TO ACCEPT field.

      Note:

      The ACCEPT TRANSFERS window is the same for accepting work units and individual cases.

    5. Enter a "Y" in the ACCEPT column for each case being accepted.

    6. After entering a "Y" for all the cases you choose to accept, press >F4< to commit.

    7. Press >F8< to exit.

Requesting Cases

  1. In certain situations it may be necessary to request an individual case to work. The request case option generates a charge-out which the clerical function uses to pull, transfer, and route the case to the requester. A case cannot be requested to work when it is assigned to another UID.

    Note:

    This option should not be used when working virtual cases, the TEs should use the UWC option whenever possible.

  2. To request a case, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select reQuest from the pull-right menu.

    4. Enter the SSN. The REQUEST CASE window displays with a "W" in the REQUEST CD field, press >Enter<.

      Note:

      The system displays a message if the case is not in a Suspense Batch.

    5. A "Y" displays in the TELEPHONE field.

      Caution:

      Verify the "Y" is only in the telephone field and NOT in the PRP/CNGR field unless applicable.

    6. Press >F4< to commit. A message displays indicating the records have been committed.

    7. Press >F8< to exit.

      Note:

      When the case file is received, use the ACCEPT TRANSFERS window to acknowledge receipt of the case.

Entering IRS Received Date

  1. When correspondence is received and the received date has not been input by the clerical unit use the CORRESPONDENCE RECEIVED window to add this information.

    Note:

    When correspondence is received while on the phone the received date MUST be entered in the CORRESPONDENCE RECEIVED window

    Exception:

    A faxed Form 2848 , Power of Attorney and Declaration of Representative, with no explanation is NOT considered correspondence for the purposes of updating the IRS received date on AUR.

  2. To input the IRS received date, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select rcVd date from the pull-right menu. The received date portion of the CORRESPONDENCE RECEIVED window displays.

    4. Enter the SSN of the case.

      Note:

      If entering a IRS received date while in the CASE ANALYSIS screen the SSN auto populates.

    5. Enter the received date of the correspondence in the IRS RCVD DATE field. (The AUR RCVD DATE field is entered by the system.)

    6. Press >F4< to commit.

    7. Press >F8< or select Exit to exit the CORRESPONDENCE RECEIVED window.

Viewing Cases

  1. The View case menu is used to view any case that is on the AUR system.

  2. To view a case, take the following actions:

    1. Select reView from the main menu.

    2. Select View case from the drop-down menu.

    3. Enter the SSN, the cursor moves to the PHONE CONTACT field.

    4. Phone assistors either use their mouse to left click in the field or the space bar to make a check mark appear in the field, then press the >Enter< key to proceed with the View Case process.

      Caution:

      If the PHONE CONTACT field is checked incorrectly, the user can either left click with their mouse or press the space bar again to remove the check mark from the field.

      Note:

      The TE must complete disclosure on phone calls using the DISCLOSURE VERIFICATION screen.

    5. The DISCLOSURE VERIFICATION screen automatically displays when the PHONE CONTACT field of the HISTORY/VIEW/REQUEST window contains a "Y" . See (3) below for additional information on the DISCLOSURE VERIFICATION screen.

    6. For non-phone related access to View Case (PAS review, etc.): after the user types in the SSN, press the >Enter< key TWICE to move past the PHONE CONTACT field (without placing a check mark in the field) and proceed with the View Case process.

  3. After accessing the DISCLOSURE VERIFICATION screen as outlined in (2) above, follow disclosure procedures in IRM 4.19.3.20.2.2, Disclosure.

    1. Click in the box to the right of the SSN field after verifying the primary Social Security Number.

    2. Click in the box to the left of the NAME OR NAMES field after verifying the name (filing status 1, 3 or 4) or names (filing status 2) as they appear on the tax return.

    3. Click in the box to the left of the ADDRESS field after verifying the complete mailing address including city, state and zip code.

      Note:

      If the caller provides information that requires updating the account (i.e., new address, authorized third party, etc) the phone assistor can click on the "CHANGE ADDR?" button (after disclosure has been completed) and the UPDATE ADDRESS window displays. Once changes have been made and committed, the system defaults back to the DISCLOSURE VERIFICATION screen.

    4. Click in the box to the right of the FILING STAT CD after verifying the filing status used on the return, OR the box to the left of the DOB field after verifying the date of birth. If neither are known, click in the box to the left of the NUM EXEMPTIONS field after verifying the total number of exemptions.

    5. Once disclosure has been completed, click on the "DISCLOSURE COMPLETE" button. If the required disclosure has been met, the system displays the taxpayer's account. If the required disclosure has not been met, the following message displays: "ERROR: DISCLOSURE INCOMPLETE" . Verify that you have asked the required disclosure questions and checked the corresponding boxes. If caller fails disclosure, normal procedures for failed disclosure should be followed. Press >F8< to exit the DISCLOSURE window.

  4. The history of the case can be viewed by accessing the CASE HISTORY window.

  5. There are two different menu options that can be used to view case history depending on the location of the case. To view a case assigned to your unit, take the following actions:

    1. Select cOntrol from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select Case history from the pull-right menu.

    4. Enter the SSN to be viewed.

  6. To view a case that is not assigned to your unit, take the following actions:

    1. Select reView from the main menu.

    2. Select Case history from the pull-right menu.

    3. Enter the SSN to be viewed.

  7. The CASE HISTORY window includes the following information:

    1. SSN - The primary taxpayer's social security number.

    2. S-SSN - The secondary taxpayer's social security number.

    3. CSN - The current case sequence number.

    4. CATEGORY - A two-digit number that identifies the type of U/R income.

    5. ELF/EZ - A "Y" in this field indicates a 1040EZ or an ELF return was filed, an "N" indicates a paper return was filed

    6. NAME CTRL - The first four letters of the primary taxpayer's last name.

    7. AO - The code identifies the IRS Area Office.

    8. SUBCATEGORY - Identifies the dollar range of the potential U/R amount.

    9. USER - The assigned employee UID (if the case is assigned).

    10. SUBFILE - An alpha or numeric character that identifies the sub-program with AUR for which the case was developed.

    11. REQ USER - The number that identified the user requesting the case from the suspense file.

    12. TP INFO - This button allows access to the DISPLAY TAXPAYER INFORMATION window

    13. BATCH NUMBER - The first two digits are the type of batch and the last three digits show the sequence number of the batch within the batch type.

    14. LOCATION - The identification number of the unit that the batch is assigned to.

    15. STATUS - A code assigned to each batch that describes the current processing stage (e.g., assigned to a unit, batch finished, etc.).

    16. STATUS DATE - Date the status of a batch was updated.

    17. CODE: The PC of the case. Use the boxes to the left to scroll.

    18. RECON CODE - The Recon Issue Code assigned to the case.

    19. USER - The UID number of the employee that entered the latest PC.

    20. INPUT DATE - The date the last PC was input.

    21. POSTED DATE - The date the PC posted on the system and was uploaded by ECC-MTB (Enterprise Computing Center at Martinsburg) or ECC-MEM (Enterprise Computing Center at Memphis).

    22. PREVIOUS CSN and PRIOR CSN- The two previous case sequence numbers of the case.

    23. PREVIOUS LOCATION - The prior location of the batch.

    24. DATE - The date associated with the correspondence type. By clicking on this box, the notice or letter history appears. Use the boxes to the left to scroll.

    25. ACTION - Types of action taken on the case (e.g., phone calls, correspondence, assessment. etc.).

    26. ACTION CODE - Alpha character that indicates the status of outgoing correspondence

      Action Code Definition
      T True Undeliverable
      M Re-mailed to new address
      R Rejected
      U New address/actions exist
      C Cancelled, indicates a stop notice action has been input
      S Statutory notice not mailed
      D Notice information deleted
    27. DELIVERY STATUS CODE - Alpha character that indicates a response from United States Postal Service (USPS) concerning the status of the certified mailing (Stat notice)

      Action Code Definition
      A Notice has been delivered by USPS and it has been signed for by the intended recipient or agent approved by the recipient.
      BLANK CPS has not delivered any status update to AUR.
      N USPS delivery status for the mailed notice has not been received by CPS within a specified time period.
      P The notice has been surrendered to the USPS. Notice is Pending delivery by USPS.
      S The notice has been suppressed and not mailed by CPS.
      U Notice was Undeliverable by USPS.
      X Statutory Notice unclaimed/refused
    28. PROCESS CODE TEXT - A description of the last posted PC.

    29. RECON CODE TEXT - A description of the last posted Recon code.

  8. The DISPLAY TAXPAYER INFORMATION window can be accessed by clicking on the "TP INFO" box in the CASE HISTORY screen. It is used to input the telephone number(s) and contact hours for taxpayers, input case notes, and access the UPDATE ADDRESS window. This window also displays the filing status, exemptions, over 65 or blind, bankruptcy, and POA information, as well as the current entity and complete account information to assist when telephone representatives are reviewing disclosure information.

  9. The DISPLAY TAXPAYER INFORMATION window can also be accessed by taking the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select tp Info from the drop-down menu.

  10. To view an assessment history, click on the action DATE field on the bottom left side of the Case History screen.

Viewing Display Notice History Screen

  1. While viewing the CASE HISTORY window, you can select the DISPLAY NOTICE HISTORY screen. These screens display a complete summary of the information contained in the notice that was issued to the taxpayer.

  2. To view a notice, click on the DATE field next to the notice to be reviewed on the CASE HISTORY screen. The DISPLAY NOTICE HISTORY screen allows you to scroll through the CHANGED ITEMS, SELECTED PARAGRAPHS and the SELECTED INFORMATION RETURNS using the Up and Down arrow keys.

Printing Notices from Case History Screen
  1. Beginning with TY 2014 a new button, "PRINT NOTICE" , is available in Case history that allows the user to identify whether or not the notice has been issued. By clicking the VIEW NOTICE button, the "Case History 201X" window displays.

    Note:

    If there are no notices to view, the following message displays in the hint text: "No notices to view or print" .

  2. New pop-up window provides view/print access to all available notices. A scroll bar along the right side of window allows easy viewing of additional notices if needed.

  3. The window contains the following fields:

    • Type

      Indicator Description
      R Review
      P Print
    • Mailed to

      Indicator Description
      TP Primary taxpayer
      SP Secondary taxpayer
      P1 Primary POA for Primary Taxpayer
      P2 Secondary POA for Primary Taxpayer
      P3 Primary POA for Secondary Taxpayer
      P4 Secondary POA for Secondary Taxpayer
    • Notice Date - displays the date of the notice

    • Notice - displays the type of notice (i.e., CP 2501 , CP 2000 , Recomputed or Stat)

    • Print All Notices (button) - allows users to view/print all available notices. The available notices display in separate windows.

    • Print Notice (button) - allows users to view/print a specific notice.

  4. To print a specific notice take the following actions:

    1. Click on the notice that you want to print.

    2. Click on PRINT NOTICE button, an Internet Explorer window displays.

    3. Select Open, the selected notice displays

    4. Move the mouse to the lower part of the notice and click on the printer icon.

  5. To print all notice take the following actions:

    1. Click on PRINT ALL NOTICES button, an Internet Explorer window displays for each notice listed.

      Note:

      Each notice will need to be opened individually.

    2. Select Open, the selected notice displays.

    3. Move the mouse to the lower part of the notice and click on the printer icon.

Universal Work Case

  1. AUR tax examiners identified to have access to Universal Work Case can view and work (if available) a case regardless of where the AUR case was initiated. The ability to work a case initiated from another site is restricted for cases currently assigned to a Notice Suspense or Notice Purge batch only. If the user attempts to control a case not in a Notice Suspense or Notice Purge batch, the following message appears: "Error: Case is not in a batch allowed for Universal Work Case."

  2. Before an action can be taken on a case, it must be controlled to the user. After the case has been accessed through "View Case" , take the following actions to control the case:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select univ Work from the pull-right menu.

    4. Click on the "Yes" box when the following message displays: "Do you accept the case to work?"

      Note:

      If the "No" box is checked, the case is not assigned to the user.

    5. Acknowledge the message: "Warning: Case has been assigned to you. Please work case and release."

      Note:

      This action assigns the case to the user in the appropriate Universal Work Suspense Batch (45950, 65950, and 75950) and move the user automatically to case analysis to work the case, input the PC, and release the case.

Releasing Cases through Universal Work
  1. To release a Universal case that is assigned to a User, use the RELEASE CASE window.

    Note:

    These cases do not appear on the unit inventory report, TEs need to press >F6< or access the CASES ASSIGNED window to identify cases that are assigned to them under Universal work. Managers should monitor the employees inventory to ensure that cases worked through Universal Work Case (BT XX950) are released timely.

  2. To release a universal case, take the following actions:

    1. Select Control from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select Release from the pull-right menu. The RELEASE CASE window displays, with the cursor in the SSN field.

    4. Enter the SSN of the case to be released. The system checks to verify certain conditions.

      Note:

      If the system identifies a discrepancy, the ERROR window overlays the RELEASE CASE window (an asterisk (*) displays in the error condition column). The case cannot be released until all error conditions are resolved. See Exhibit 1.4.19-4, Error Condition-Cause-Corrective Action Chart, for a complete list of error conditions and the action required to correct each one.

    5. If there are no errors on the case, or when all error conditions have been corrected, press >F4< to commit. A message displays indicating the records have been committed.

    6. Press >F8< to exit.

    Caution:

    Cases that are not released by the TE that works them can be released by the AUR Coordinator. If the AUR Coordinator releases the case it is refiled to the previous suspense batch. All PCs entered by the TE are lost.

Viewing Archived Cases

  1. When AUR case information is no longer available to view using View Case, it may be accessible through the Archived Case option.

    Note:

    The User does not have to access the archived data from the current AUR tax year. It can be accessed from any of the tax years located on the AUR system.

  2. To access archived case information, take the following actions:

    1. Select reView from the main menu.

    2. Select Archived case from the drop-down menu. The REQUEST ARCHIVE window displays.

    3. Enter the SSN of the case in the SSN field.

    4. Enter the tax year of the case in the TAX YEAR field.

    5. In the REQUEST OPTION field enter "V" to view or "P" to print. The ARCHIVED FILE REPORT window displays.

    6. Review the available options (e.g., General Case Information, Case Note Information, etc.).

    7. Click on the "View" or "Print" option under the type of case information you need. If the Print option is selected, follow the system prompts.

    8. If you need to view or print another case component, click the mouse on the "Back" arrow at the top left corner and repeat step 6 above.

    9. To exit the ARCHIVED FILE REPORT, select File followed by Close.

Requesting Research

  1. Additional information may be required to complete the analysis of a case. It may be necessary to order an additional return using the REQUEST RESEARCH window. This window displays the prior research request(s) for the case and also allows additional research to be ordered or prior requests to be cancelled.

  2. To request research, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Research from the drop-down menu. The REQUEST RESEARCH window appears.

    3. Click in the SSN field.

    4. Enter the primary SSN. The cursor moves to the RS TP (Research Type) field.

      Note:

      The FILE SOURCE CODE field displays next to the SSN field. This field remains blank unless the SSN entered is invalid. A system prompt appears if an entry is required or needs to be changed.

    5. Enter an "R" to request a return. The cursor moves to the RQ TP (Request Type) field.

    6. Enter the appropriate code, refer to the chart below for the applicable codes to enter for ordering a return.

      Code Description
      C Copy only
      G Follow up to first request with no reply
      I Information request as specified in remarks
      K Copy request as specified in remarks
      O Original document request
      P Copy request for first page
      R Reimbursable photocopy request
      T Recharge documents to another area
      V Expedite return request
      W W-2 request
      X Out of campus' Federal Records Center request
    7. Use the MFT CD (Master File Tax Code) field to enter the MFT information you are requesting. The MFT CD for a Form 1040 is 30. When a valid MFT code is entered, the FORM NUM field displays the related tax form number that is being requested.

    8. Use the TAX PRD field to enter the tax period of the return being requested. The default is the current tax year. If research for another tax year is needed, click on TAX PRD field and enter tax year (YYYYMM). Enter the DLN and name control (NAME CTRL). The cursor moves to the remarks section.

    9. Use the DLN field to enter the document locator number. If the DLN of the document you are requesting is unknown, research IDRS (TXMOD or IMFOLT) to determine the correct DLN to enter in the DLN field.

    10. Use the NAME CTRL field to enter the name control of the taxpayer for which the return is being requested, input remarks as applicable and press >F4< to commit.

  3. At times it may be necessary to re-order research when the original request is not satisfied. To re-order research, press >F4< in the REQUEST RESEARCH window. The cursor moves down one line. Enter all required information and press >F4< to commit.

  4. If a research request was committed and is no longer needed, the request should be deleted. Requests can only be deleted if they have not yet been uploaded to IDRS. Research requests input through the AUR system (including the TAX ACCOUNT screen) that are no longer needed must be deleted via the REQUEST RESEARCH window.

  5. To delete a request:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Research from the drop-down menu. The REQUEST RESEARCH window appears.

    3. Place the cursor on the record to be deleted

    4. Press >F3<.

    5. Press >F4< to commit and save the deletion.

    6. Press >F8< to exit.

Updating Address Information

  1. Use the UPDATE ADDRESS window to input changes to:

    • The taxpayer's name

    • The taxpayer's address

    • The spouse's address

    • POA information

      Note:

      Beginning with TY 2011 the UPDATE ADDRESS window will allow for input of up to four (4) POAs.

    • A temporary address

    • Authorized third party contact information

    • The business name and address

    • The Name Line Changes

  2. To access the UPDATE ADDRESS window, take the following actions:

    1. Select reF tools from the CASE ANALYSIS screen.

    2. Select Update Address from the drop-down menu. When the window is selected, the current master file address information displays.

      Note:

      Valid entries for the second name line are A-Z, 0-9, -, &, / and blank. Use C/O to indicate in care of . Do not use "%" . Valid entries for the address line are A-Z, 0-9, -, / and blank. For a list of major city codes press >F6< while in the City field and select the appropriate code. For a list of valid state codes press >F6< while in the State filed and click on the item needed.

  3. To add DECD to the taxpayer's name(s), take the following actions:

    1. Enter address type "I" in the ADDRESS TYPE field.

    2. Enter "DECD" after the taxpayer's last name in the FIRST NAME LINE field for other than joint returns (e.g., JOHN SMITH DECD).

    3. For joint returns, enter "DECD" after the first name of the decedent in the FIRST NAME LINE (e.g., JOHN DECD SMITH and MARY SMITH).

    4. Enter second name line, if needed.

    5. Enter "D" in the split code box.

    6. Press >F4< to commit the change.

    7. Press >F8< to exit.

  4. To change an address, take the following actions:

    1. Enter address type "I" in the ADDRESS TYPE field.

    2. Enter second name line or any changes to the second name line in the SECOND NAME LINE FIELD.

    3. Enter the updated street address in the STREET ADDRESS field.

    4. Enter the city or a valid major city code in the CITY field.

    5. Enter a valid state code in the STATE code field.

    6. Enter the 5, 9 or 12- digit ZIP code in the ZIP field. (The system validates the zip code according to the state code that has been input).

    7. Press >F4< to commit the change.

    8. Press >F8< to exit.

  5. To add or change an Authorized Third Party or POA address, take the following actions:

    1. Enter address type "A" for Authorized Party , "P1" for the primary TP’s first POA or "P2" for the primary TP’s second POA, "P3" for the secondary TP’s first POA or "P4" for the secondary TP’s second POA in the ADDRESS TYPE field.

    2. Enter second name line or any changes to the second name line in the SECOND NAME LINE FIELD.

    3. Enter the third name line or any changes to the third name line in the THIRD NAME LINE field.

    4. Enter the street address in the STREET ADDRESS field.

    5. Enter the city or a valid major city code in the CITY field.

    6. Enter a valid state code in the STATE code field.

    7. Enter the 5, 9 or 12 digit ZIP code in the ZIP field. (The system validates the zip code according to the state code that has been input).

    8. Press >F4< to commit the change.

    9. Press >F8< to exit.

  6. To add or change a business name or address based on IDRS (CC INOLES) information, take the following actions:

    1. Enter address type "B1" through "B9" in the ADDRESS TYPE field.

    2. Enter the first name line in the FIRST NAME LINE field.

    3. Enter second name line or any changes to the second name line in the SECOND NAME LINE FIELD.

    4. Enter the third name line or any changes to the third name line in the THIRD NAME LINE field.

    5. Enter the street address in the STREET ADDRESS field.

    6. Enter the city or a valid major city code in the CITY field.

    7. Enter a valid state code in the STATE code field.

    8. Enter the 5, 9 or 12 digit ZIP code in the ZIP field. (The system validates the zip code according to the state code that has been input).

    9. Press >F4< to commit the change.

    10. Press >F8< to exit.

  7. To add or change a foreign address, take the following actions:

    1. Enter address type "I" (alpha) in the ADDRESS TYPE field.

    2. Enter the street address of the foreign address in the SECOND NAME LINE.

    3. Enter the city, province or county, directionals, and foreign postal code in the STREET ADDRESS field.

    4. Enter the country name in the CITY field.

    5. Enter a period (.) followed by a blank space in the STATE field.

    6. Leave the ZIP field blank. (A ZIP code is not entered for a foreign address).

    7. Press >F4< to commit the change.

    8. Press >F8< to exit.

  8. To input a temporary address, take the following actions:

    1. Enter address type "T" in the ADDRESS TYPE field.

    2. Enter the address change, as applicable.

    3. Enter the beginning date that the temporary address will be in effect (MMDDYY). This date cannot be earlier than the current date.

    4. Enter the ending date of the temporary address (MMDDYY).

    5. Press >F4< to commit the change.

    6. Press >F8< to exit.

  9. More than one address type may be entered while in the UPDATE ADDRESS window. After one address change has been updated and committed, the cursor returns to the ADDRESS TYPE field. To enter additional address types, follow the actions listed below:

    1. Press >F7< to clear all fields.

    2. Enter a valid address type code in the ADDRESS TYPE field.

    3. Make applicable entries in the remaining fields.

    4. Press >F4< to commit the changes.

    5. Repeat steps 1 through 4, if additional address updates are required.

    6. Press >F8< to exit.

  10. To add or change an Army Post Office/Fleet Post Office/Diplomatic Post Office (APO/FPO/DPO) address, take the following actions:

    1. Enter address type "I" in the ADDRESS TYPE field.

    2. Enter any changes to the FIRST NAME field.

    3. Enter the second name line in the SECOND NAME LINE field.

    4. Input the STREET ADDRESS.

    5. Enter APO, FPO or DPO in the CITY field.

    6. Enter "AA" , "AE" or "AP" in the STATE field.

      Note:

      "AE" is the alpha code to use if the first three digits of the ZIP code are between 090-098, "AA" is for all ZIP codes that begin with 340 and "AP" is for ZIP codes that start with 962-966. Refer to the chart below for additional information.

    7. Enter the 5, 9 or 12 digit ZIP code.

    8. Press >F4< to commit the change.

    9. Press >F8< to exit.

    First Three ZIP Code Digits Country
    090-092 Germany
    094 United Kingdom
    095 Atlantic/Mediterranean Ships
    096 Italy and Spain
    097 Other Europe
    098 Middle East and Africa
    340 The Americas (except the United States and Canada)
    962 Korea
    963 Japan
    964 Philippines
    965 Other Pacific and Alaska
    966 Pacific/Indian Ocean Ships
  11. To view available addresses, enter a valid address type and press >Enter<.

  12. To delete an address, access the UPDATE ADDRESS window. When the applicable address displays press >F3< to delete followed by >F4< to commit and >F8< to exit.

Stopping Notices

  1. The STOP NOTICE window is used to stop CP 2501, CP 2000 or Statutory notices from being mailed. In order for the Stop Notice request to be successful, it must be input at least two Fridays before the scheduled mailout date. The window can also be used to delete a previously input stop notice request.

  2. To access the STOP NOTICE window, take the following actions:

    1. Select cOntrol from the CASE ANALYSIS screen.

    2. Select Case from the drop-down menu.

    3. Select stop Notice from the pull-right menu.

  3. To stop a notice from being mailed:

    1. Enter the SSN.

    2. Press >Enter<. A message indicating that the notice has been added to the Stop Notice list displays.

    3. Press >F8< to exit.

  4. To delete a Stop Notice request:

    1. Click on "DELETE" in the STOP NOTICE window.

    2. Enter the SSN.

    3. Press >Enter<.

    4. Press >F4< to commit. A message indicating that the notice has been removed from the list displays.

    5. Press >F8< to exit.