4.19.14 EITC Revenue Protection Strategy

Manual Transmittal

December 07, 2018

Purpose

(1) This transmits IRM 4.19.14, Liability Determination, EITC Revenue Protection Strategy..

Scope

This IRM contains information on procedures and administrative matters relative to Earned Income Tax Credit (EITC) Revenue Protection Strategy, related issues and other refundable credits. Throughout this IRM there are references to other IRMs which may contain related information needed when working cases.

Material Changes

(1) 4.19.14, EITC Revenue Protection Strategy, the section sequence has been changed to present a better and more related flow of information.

(2) 4.19.14, EITC Revenue Protection Strategy, the term dependent has been changed to dependent(s) to correct the terminology in various section where used. Other minor grammatical and punctuation corrections have also been made throughout the text.

(3) 4.19.14.2, Tax Law Updates, is a new section included to this IRM. This section is an overview on tax law changes related to refundable and non-refundable credits. It is not all inclusive.

(4) 4.19.14.2.4, Tax Cuts and Jobs Act of 2017 (TCJA), introduces the following explanations of the provisions of the tax reform legislation related to correspondence examination..

(5) 4.19.14.2.4.1, Personal Exemption, is an overview of the personal exemptions.

(6) 4.19.14.2.4.2, Child Tax Credit, is an overview of the CTC for tax years 2018 through 2025.

(7) 4.19.14.2.4.3, Credit for Other Dependents, is an overview of the newly created ODC tax credit.

(8) 4.19.14.4, Program Description, the description for PC 1031 and PC 1032 was revised.

(9) 4.19.14.6, Evaluating EITC Taxpayer Responses, (4) new wording added.

(10) 4.19.14.6.1, EITC Qualifying Child (QC), Tiebreaker Rules Example wording change. In the notes at the end of the table added DDBKD to research instructions.

(11) 4.19.14.6.5, Personal Exemptions and Dependents, Existing language clarification and changes made thru the section based on the Tax Act and Jobs Act of FY 2018.

(12) 4.19.14.8, Dependent Database, (2) explaining the generation of the CP 75 and the generation of the Letter 566 issuance as the ICL.

(13) 4.19.8.1, Pre and Post Refund DDb Selections Duplicate TIN (DUPTIN) Program, (3) corrected wording.

(14) 4.19.14.8.3, Third Party Affidavit for Residency, new content in this sub section.

(15) 4.19.14.8.4, Premium Tax Credit (PTC), (2) a new PTC Code 189 has been added to the table along with minor other editorial changes.

(16) 4.19.14.8.6, Pick-ups, new section explaining what a pick up is and how to work them.

(17) 4.19.14.12, Other Credits, is now made up of seven sections making it easier for tax examiners to locate information as needed.

(18) 4.19.14.12.1, Child Tax Credits, is the reference for information.

(19) 4.19.14.12.2, Child and Dependent Care Credit (CDCC), is the new reference for this information.

(20) 4.19.14.12.3, Statutory Requirements - Married Filing Separate, is the new reference for this information.

(21) 4.19.14.12.4, Education Tax Credits - American Opportunity Tax Credit (AOTC) an Lifetime Learning, is the new reference f this information.

(22) 4.19.14.12.5, Above the Line Deduction for Qualified Higher Education Expenses, is the new reference for this information.

(23) 4.19.14.12.6, American Opportunity Tax Credits, is the new reference for this information.

(24) 4.19.14.12.7, Qualified Adoption Expenses,

(25) 4.19.14.13, EITC and Premium Tax Credit Procedures, is the new reference for this information.

(26) IPU 18U1050 issued 07-12-2018 IRM 4.19.14.9.1 (now 4.19.14.10.1), Math Error Referrals to Examination - EITC, CTC/ACTC, AOTC, (3) clarification of instructions made and (7) also clarified.

(27) IPU 18U1050 issued 07-12-2018 IRM 4.19.14.10 (now 4.19.14.12.4), Education Tax Credits - American Opportunity Tax Credit (AOTC) and Lifetime Learning, link in If And Then table corrected.

(28) IPU 18U0778 issued 05-08-2018 IRM 4.19.14.6.1 (now 4.19.14.7.1) , 2/10 Year Ban - Correspondence Guidelines for Examination Technicians (CET),(12) a. TC 320 has replaced 240.

(29) IPU 18U0762 issued 05-04-2018 IRM 4.19.14.5.7 (now 4.19.14.6.4), Filing Status, (2) table -- Information concerning common law states has been updated.

(30) IPU 18U0715 issued 04-25-2018 IRM 4.19.14.2.3, Disaster Tax Relief and Airport and Airway Extension Act 2017, Information to help qualified individuals whose earned income in 2017 is less than the earned income in 2016.

(31) IPU 18U0610 issued 04-11-2018 IRM 4.19.14, Liability Determination, EITC Revenue Protection Strategy, corrects all links to IRM 4.19.13, General Case Development and Resolution, which was recently revised.

(32) IPU 18U0537 issued 03-26-2018 IRM 4.19.14.5.1 (now 4.19.14.6.3) EITC Schedule C Responses, (5) and (7) If and Then table 2nd row Then columns replaced instructions.

(33) IPU 18U0537 issued 03-26-2018 IRM 4.19.14.6.1 (now 4.19.14.7.1) 2/10 Year Ban - Correspondence Guidelines for Examination Technicians (CET),correction made on the 4.19.13 links in (2) and (3).

(34) IPU 18U0459 issued 03-15-2018 IRM 4.19.14.5.4 (now 4.19.14.6.6) EITC Taxpayer Replies - Closing Actions, (1) clarifying that all documentation should be considered to determine eligibility for EITC.

(35) IPU 18U0179 issued 01-25-2018 IRM 4.19.14.8.2, (now 4.19.14.9.2) QRP Source Code and Project Codes, a note and exception added to clarify full scope procedures if income is verified.

Effect on Other Documents

IRM 4.19.14 dated December 07, 2018 (effective January 1, 2018) is superseded. The following IPUs, issued from January 25, 2018 through July 12, 2018 have been incorporated into this IRM: 18U0179, 18U0459, 18U0537, 18U0610, 18U0715, 18U0762, 18U0778, 18U1050.

Audience

W&I (Wage and Investment) Tax Examiners and SB/SE (Small Business/Self-Employed) Campus Examination employees

Effective Date

(01-01-2019)

Michael C. Beebe
Director, Return Integrity & Compliance Services
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: This IRM provides guidance on the specific Refundable Credit programs in Campus Examination Operations.

  2. Audience: This IRM is used by tax examiners conducting audits on Refundable Credits who work in Campus Examination for Wage & Investment (W&I) Refundable Credits Examination Operation (RCEO) and Small Business/Self - Employed (SB/SE) Campus Operations.

  3. Policy Owner: The policy information contained in this IRM is owned and updated by W&I Headquarters Analysts in coordination with SB/SE Headquarters Analysts

  4. Program Owner: The Director of Return Integrity and Compliance Services (RICS) is the executive responsible for the content.

  5. Primary Stakeholders: Wage and Investment (W&I), Small Business/Self Employed (SB/SE).

  6. Contact Information: To recommend changes or make any other suggestions for this IRM section send an email to the IRM author or utilize the SERP Feedback Application.

Background

  1. In 1997, Campus Examination Operations actively began working the Revenue Protection Strategy. Exam receives the majority of its EITC work from the Dependent Database (DDb) and Electronic Fraud Detection System (EFDS).

Authority

  1. IRC 32 - Earned Income Tax Credit

  2. IRC 24 - Child Care Credit

  3. IRC 23 - Adoption Credit

  4. IRC 36B - Premium Tax Credit

  5. Various sections of the Protecting Americans from Tax Hikes Act of 2015, Public Law 114-113. See IRM 4.19.14.2.2

  6. Policy Statement 1-236 - Fairness and Integrity in Enforcement Selection.

Roles and Responsibilities

  1. Director, W&I Return Integrity & Compliance Services

  2. Director, SB/SE Campus Examination Operations

  3. Director, Return Integrity & Compliance Services Refundable Credits Policy and Program Management

  4. Manager, Return Integrity & Compliance Services Refundable Credits

  5. Headquarter Analyst in both W&I and SB/SE provide campus guidance on workload selection and delivery-related issues.

Program Management and Review

  1. The Refundable Credit Examination audit inventory is primarily selected systemically using risk based scoring criteria. W&I’s Refundable Credit Policy and Program Management Operation (RCPPM) headquarters has primary responsibility for developing and maintaining these criteria. They also have primary responsibility for developing the W&I Examination work plan which outlines the volumes and timeframes of audits initiated based on the available scored returns and resources. The work plan is meant to be used as a guide only, and may be adjusted as warranted based on resource limitations and legislative changes. The actual audits are conducted by W&I Refundable Credits Examination Operations (RCEO) and SB/SE Campus Operations employees.

Acronyms

  1. Acronyms used in Exam are listed below:

    Acronym Definition
    ACA Affordable Care Act
    ACE Automated Correspondence Examination
    ACTC Additional Child Tax Credit
    AOTC American Opportunity Tax Credit
    APTC Advanced payments of the Premium Tax Credit
    ARRA American Recovery and Reinvestment Act
    ASED Assessment Statute Expiration Date
    AIMS Audit Information Management System (IDRS)
    AM Accounts Management
    cc Closing Code
    CDCC Child and Dependent Care Credit
    CEAS Correspondence Examination Automation Support
    CI Criminal Investigation
    CIS Correspondence Imaging System
    CP Computer Paragraph (notice)
    CTC Child Tax Credit
    DAE Discretionary Automated Examination
    DUPTIN Duplicate TIN
    EC Error Code
    EFDS Electronic Fraud Detection System
    EITC Earned Income Tax Credit
    FPL Federal Poverty Level
    FY Filing Year
    IAT Integrated Automation Technologies
    ICL Initial Contact Letter
    IMF Individual Master File
    IVO Integrity and Verification Operation (formerly AMTAP)
    LTRC Long Term Residency Credit
    PTC Premium Tax Credit
    QRP Questionable Refund Program
    RICS Return Integrity & Compliance Services
    RGS Report Generation Software
    SLCSP Second Lowest Cost Silver Plan
    SNOD Statutory Notice of Deficiency
    SRP Shared Responsibility Payment
    SSN Social Security Number
    TY Tax Year
    TIN Taxpayer Identifying Number
  2. A listing of acronyms can also be found on http://rnet.web.irs.gov/Resources/Acronymdb.asp

Related Resources

  1. IRM sections containing helpful information on refundable credits programs:

    • IRM 4.19.10 Examination General Overview

    • IRM 4.19.11 Examination Classification of Work

    • IRM 4.19.12 Centralized Files and Scheduling

    • IRM 4.19.13 General Case Development and Resolution

    • IRM 4.19.14 Examining Process - Revenue Protection Strategy

    • IRM 4.19.15 Discretionary Programs

    • IRM 4.19.16 Claims

    • IRM 4.19.17 Non-Filer Program

    • IRM 4.19.18 Quality Review Program

    • IRM 4.19.19 Campus Examination Telephones Contacts

    • IRM 4.19.20 Automated Correspondence Examination (ACE) Processing Overview

    • IRM 4.19.21 Clerical

    • IRM 25.23.10 Compliance Identity Theft Case Processing

Tax Law Changes

  1. This section is an overview on tax law changes related to refundable and non-refundable credits. It is not all inclusive.

The Patient Protection and Affordable Care Act (ACA)

  1. The Patient Protection and Affordable Care Act (known by the short title Affordable Care Act (ACA) increased the adoption expense credit for adoption assistance programs and made the credit fully refundable in the year it was claimed. Effective TY 2012, the Adoption Credit became a nonrefundable credit. The Adoption Credit was nonrefundable for most years but was refundable in 2010 and 2011. See IRM 4.19.15.5, Adoption Credit and Qualified Adoption Expenses (QAE ), for additional information on Adoption Credit procedures.

  2. Premium Tax Credit - The Patient Protection and Affordable Care Act (ACA) provides low to moderate income Americans with the ability to obtain the Premium Tax Credit (PTC) to pay for health insurance purchased on federal or state health care marketplaces. The IRS helps administer this program by providing tax and family size information to the marketplaces to estimate the amount of allowable PTC, and by requiring taxpayers to calculate and claim the correct amount of PTC on their annual tax return.

    • PTC can be received as a refundable credit claimed on their tax return.

    • PTC can be paid as an advance to their insurer, to lower the taxpayer’s monthly out-of-pocket costs.

    Taxpayers can receive the PTC in two ways:

  3. Regardless of the method chosen to receive the credit, individuals will be required to file a tax return to reconcile the credit. Any individuals who receive advance payments of PTC must also correctly report this amount on their return. The credit will be calculated based on information on the tax return. Some taxpayers may be required to repay some or all of the advance payment. See IRM 4.19.15.42, Premium Tax Credit - IR-36B, for additional information on PTC procedures.

Protecting Americans from Tax Hikes Act 2015

  1. This subsection covers the various tax law changes impacting refundable credits:

    PATH Section Title and Explanation
    101: Reduced earned income threshold for Additional Child Tax Credit made permanent at $3,000.
    102: American Opportunity Tax Credit, modification to the Hope Credit, are made permanent.
    103: Expanded earned income tax credit modifications made permanent.
    • Higher credit rate when 3 or more qualifying children

    • Higher phase-out thresholds for married couples filing joint returns.

    201: Information Returns and Refund Processing
    Modification of filing dates of returns and statements relating to employee wage information and nonemployee compensation to improve compliance.
    • Certain information returns must be filed by January 31 and are no longer eligible for extended filing date for electronic filed returns under IRC 6071(b)

    • No credit or refund for an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of the taxable year (generally Feb 15) if the taxpayer claimed the EITC or ACTC on the tax return.

    204: Prevention of retroactive claims of refundable credits – EITC
    • Limits an individual from retroactively claiming the EITC by amending a return (or filing a late original return).

    • A valid SSN must be issued to the primary, secondary and qualifying dependents on or before the due date of the return, including extension.

    205: Prevention of retroactive claims of refundable credits - CTC
    • Limits an individual from retroactively claiming the CTC by amending a return (or filing a late original return).

    • A valid TIN (SSN, ITIN, ATIN) must be issued to the primary, secondary and qualifying dependents on or before the due date of the return, including extension.

    206: Prevention of retroactive claims of refundable credits – AOTC
    • Limits an individual from retroactively claiming the AOTC by amending a return (or filing a late original return).

    • A valid TIN (SSN, ITIN, ATIN) must be issued to the primary, secondary and qualifying dependents on or before the due date of the return, including extension.

    207: Procedures to Reduce Improper Payments
    • Expands the EITC paid-preparer due diligence requirements, and the associated $500 penalty for failure to comply, to the CTC and AOTC

    • Requires that IRS study the effectiveness of the tax preparer due diligence requirements for EITC, CTC and AOTC and whether requirements should apply to taxpayers who file online or by paper.

    208: Restrictions on Improper Credits Claimed in Prior Year
    • Expands recertification requirements for making improper claims and 2-Year Ban for recklessly and intentionally disregarding rules (not due to fraud) and 10 year bans for fraud, already existing for EITC, to CTC and AOTC

    • Grants math error authority for EITC claimed during ban periods

    • Grants math error authority if taxpayer claims CTC and AOTC during recertification and ban periods.

    209: Treatment of Credits for Purposes of Certain Penalties
    • Amends the definition of underpayment used to determine the 20% accuracy-related and 75% fraud penalties by incorporating in the definition the rule that in determining the tax imposed and the amount of tax shown on the return, the excess of the refundable credits over the tax is taken into account as a negative amount of tax. If a taxpayer files an income tax return erroneously claiming refundable credits in excess of tax, there is an underpayment on which a penalty may be imposed reversing the Tax Court decision in Rand v. Commissioner.

    • Repeals the exception from the 20% erroneous claims penalty for the earned income credit and changes the standard for penalty relief from reasonable basis to reasonable cause.

Disaster Tax Relief and Airport and Airway Extension Act 2017

  1. Qualified individuals whose earned income in 2017 is less than the earned income in 2016 may elect to use their 2016 earned income when figuring EITC. The taxpayer must have lived in the designated disaster area when the disaster occurred. See IRM 21.6.3.4.2.7.4 (6), EITC Earned Income.

Tax Cuts and Jobs Act of 2017 (TCJA)

  1. This section contains provisions of the tax reform legislation related to correspondence examination. It applies to the tax years beginning after December 31, 2017, and before January 1, 2026.

Personal Exemption
  1. A taxpayer was generally allowed:

    • one exemption for himself or herself (unless the taxpayer could be claimed as a dependent by another taxpayer),

    • one exemption for their spouse if they filed a joint return,

    • and one personal exemption for each of his or her dependents.

Child Tax Credit
  1. The Child Tax (CTC) is a credit used to reduce the taxpayer’s tax liability. For tax years 2018 through 2025:

    • The credit is $2,000 per qualifying child, $1,400 is refundable.

    • Each qualifying child must have a Social Security number that was issued before the due date of the tax return including extensions.

    • The child must also be a United States citizen or resident alien.

    • The child must be under age 17 at the end of the calendar year.

Credit for Other Dependents
  1. TCJA also created a new credit the Other Dependent Credit (ODC). This credit is intended to give the taxpayer a credit for certain dependents if the taxpayer does not qualify for the CTC or Additional Child Tax Credit (ACTC) either due to age or other limitations.

    • The credit is $500.00 and is non-refundable.

    • The person must be a dependent of the taxpayer.

    • The person must be a dependent of the taxpayer.

    • The credit is available when the dependent has an Individual Taxpayer Identification Number (ITIN), Social Security Number (SSN), Internal Revenue Service Number (IRSN) or Adopted Taxpayer Identification Number (ATIN).

EITC Soft Notices

  1. See IRM 21.3.1.5.46, CP 85 and CP 87 (Exam Soft Notices).

Program Description

  1. The following table lists of program descriptions:

    Project Code Source Code ICL Letter Program Name, Description and Exam Issues:
    0026 30 566D EITC Amended return Initiative 2005 re-titled 7/28/2005 EITC, Schedule C:
    Systemic selection by DDBCK for an amended return with a Sch C filter break and DDb Rule break. EITC full scope and Sch C net profit.
    0027 06 CP 75/CP 75A EITC Recertification with Proposed 2-Year Ban: Taxpayer has a Recertification Indicator and broke DDb rule(s).
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    The 2-Year Ban is proposed systemically on exam report
    0028 06 CP75/CP 75A EITC Recertification Schedule C with proposed 2-Year Ban: Taxpayer has a Recertification Indicator, and broke DDb rule(s) and Sch C filter(s). The 2- Year Ban is proposed systemically on exam report.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status and
    Schedule C net profit.
    0029 06 CP 75/CP 75A DDb Pre-Refund Pick-up: Case selected because prior year PC0621 case open for examination.
    Exam Issues:

    Full scope; EITC,
    dependent(s),
    filing status
    0045 06 566 EITC Erroneous Refund: Erroneous Refund issue must include EITC.
    Exam Issues:

    Must contain EITC and any other identified issue(s) See IRM 4.19.15.17 for, Erroneous Refund Procedures.
    0058 06 566 Related Pick-up for EITC DUPTIN: Related cross reference for EITC DUPTIN PC 0652.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status
    0061 06 CP 75/CP 75A Subsequent Year Pick-up for EITC DD: Subsequent Year Pick-up for EITC DDb. Pre-refund DDb selected because prior year return is still open in PC 0261.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status
    0099 08 CP 75/CP 75A Full scope EITC/FTHBC: Taxpayer broke the EITC and FTHBC rules.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status
    0132 70 566 CI - EITC Referral: Cases referred from CI to HQ Exam.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    NOTE: could include other issues depending on scheme criteria.
    0173 06 CP 75/CP 75A QRP Schedule C, EITC, no wages: Identified as prisoner.
    Exam Issues:
    Full scope; EITC,
    dependent (s),
    filing status,
    Sch. C net profit.
    0173 11 CP 75/CP 75A QRP Schedule C, EITC, no wages: Identified as non-prisoner.
    Exam issues:
    Full scope; EITC,
    dependent(s),
    filing status,
    Sch. C net profit
    0173 70 CP 75/CP 75A QRP Schedule C, EITC, no wages: Identified as non-prisoner.
    Exam issues:
    Full scope; EITC,
    dependent(s)(s),
    filing status,
    Sch. C net profit
    0257 06 CP 75/CP 75A EITC and Schedule : Taxpayer has a Recertification Indicator and broke DDb rule(s) and Sch C filter(s).
    Exam Issues:
    Full scope; EITC,
    dependent(s), filing status,
    Sch. C net profit
    0261 06 CP 75/CP 75A EITC-DDb Pre-refund full scope: Broke EITC rule(s)
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0263 06 566E NON-EITC QRP: Identified as scheme. Exam Issues:
    Full scope;
    false and/or inflated income and/or withholding, and
    refundable credits other than EITC, such as ACTC, AOTC, FTC, FTHBC and Adoption Credit.
    0263 08 566E NON-EITC QRP: Identified as FTHBC present. Exam Issues:
    Full scope,
    false and/or inflated income and/or withholding, and
    refundable credits other than EITC, such as ACTC, AOTC, FTC, FTHBC and Adoption Credit.
    0263 11 566E NON-EITC QRP: Identified as a prisoner. Exam Issues:
    false and/or inflated income and/or withholding, and refundable credits other than EITC such as ACTC, FTC, FTHBC and Adoption Credit.
    0263 70 566E NON-EITC QRP: Identified as a Non-prisoner. Exam Issues:
    false and/or inflated income and/or withholding, and refundable credits other than EITC such as ACTC, FTC, FTHBC and Adoption Credit
    0289 06 CP 75/CP 75A EITC full scope with Sch C Allowed: EITC full scope, Schedule C allowed.
    0291 06 CP 75/CP 75A Native American with full scope EITC: Native American. Form 13588, Native Americans and the Earned Income Credit, is included in mail outs as alternative documentation that can be used in lieu of Form 886-H-EIC.
    Exam Issues:
    EITC,
    dependent(s),
    filing status
    0292 06 CP 75/CP 75A EITC Full Scope and Net Profit Schedule C – Native American: EITC Full Scope and Schedule C Net Profit. Form 13588 is included to provide a list of alternative documentation that can be submitted in lieu of the items on the 886 for Native American
    Exam Issues:
    EITC,
    dependent(s), filing status and
    Schedule C net profit.
    0367 30 566D EITC amended return System selection: Systemic DDBCK selection for an amended return with DDb rule break(s).
    0370 30 566D EITC amended return with no FCR data: Amended EITC Return meeting Cat A with no FCR data Classification needed.
    0386 30 566D EITC amended return – Schedule C with no FCR data: Amended EITC Return with Schedule C meeting Cat A with no FCR data Classification needed
    0390 06 566E QRP - Household Help (HSH), no Form W-2, EIC full scope: Identified as scheme. No Form W-2 or withholding. Claiming HSH and EITC.
    Exam Issues:
    false or inflated HSH income,
    EITC, dependent(s),
    filing status and
    all refundable credits present.
    0390 08 566E QRP - Household Help (HSH), no Form W-2, EIC and FTHBC: Identified as FTHBC present. No Form W-2 or withholding, claiming HSH income,
    EITC and FTHBC,
    refundable credits present.
    0390 11 566E QRP - Household Help (HSH), no Form W-2 or withholding, EITC full scope: Identified as prisoner
    Exam Issues:
    False or inflated HSH income,
    EITC,
    Dependent(s),
    Filing status, and
    All refundable credits present,
    0390 70 566E Household Help (HSH), no Form W-2 or withholding, EITC full scope: Taxpayer claiming HSH and EITC. No Form W-2 or withholding. Claiming HSH and EITC.
    Exam Issues:
    False or inflated HSH income, EITC,
    Dependent(s),
    Filing status and
    All refundable credits present.
    0584 06 CP 75/CP 75A QRP - One completely false Form W-2 wage and withholding, EITC full scope: Identified as scheme.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC,
    dependent(s),
    filing status and all refundable credits present ACTC, AOTC, or MWPC may be present.
    0584 11 CP 75/CP 75A QRP - One completely false Form W-2 wage and withholding, EITC full scope: Identified as prisoner.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC,
    dependent(s),
    filing status and all refundable credits present. ACTC, AOTC, or MWPC may be present.
    0584 70 CP 75/CP 75A One completely false Form W-2 wage and withholding, EITC: Identified as Non-prisoner.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC,
    dependent(s),
    filing status and all refundable credits present. ACTC, AOTC, or MWPC may be present.
    0585 06 CP 75/CP 75A EITC Full, scope, FTHBC, and Sch C: EITC full scope, FTHBC and Schedule C net profit.
    0586 06 CP 75/CP 75A EITC issue post refund: EITC single issue only worked as post refund.
    0587 06 CP 75/CP 75A EITC DUPTIN Pick-ups: Pre-refund DDb cases selected because prior year is still open as PC 0652 examination.
    Exam Issues:
    Full Scope; EITC,
    dependent(s),
    filing status.
    0600 06 566S EITC Unsubstantiated Math Error- : Taxpayers claimed EITC on original filed return and received math error notice. Taxpayer replied within 60 days filing a Form 8862.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0601 06 566S EITC - Informant: Third party reports taxpayer on Form 3949 - A for fraudulent tax activities to gain EITC.
    0603 11 566 QRP - GATT, good wages, unallowable EITC/RRC/MWPC: Identified as prisoner. Good wages, unallowable EITC/RRC/MWPC due to GATT legislation..
    0607 30 566D EITC - Form 1040X prior year: Taxpayers who file an Amended return for a prior year to gain EITC.
    0608 08 566 Full scope EITC, and Sch C: Taxpayer broke EITC, and Sch. C filters.
    0611 06 566E QRP Miscellaneous questionable income, WH, EITC/credits: Identified as scheme.
    Exam Issue(s):
    Can be multiple issues;
    more than one wage,
    withholding that are false or inflated,
    must have EITC,
    may have HSH income, and/or Schedule C and
    all refundable credits present.
    Does not fit into any other QRP project codes.
    0611 08 566E QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as FTHBC present.
    Exam Issue(s):
    Can be multiple issues; more than one wage,
    withholding that are false or inflated,
    must have EITC and FTHBC, may have HSH income, and/or Schedule C and
    all refundable credits present.
    Does not fit into any other QRP project codes.
    0611 11 566E QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as prisoner.
    Exam Issue(s):
    Can be multiple issues;
    more than one wage,
    withholding that are false or inflated,
    must have EITC,
    may have HSH income, and/or Schedule C and
    all refundable credits present.
    Does not into any other QRP Project Code.
    0611 70 566E QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as non-prisoner.
    Exam Issue(s):
    Can be multiple issues; more than one wage,
    withholding that are false or inflated,
    must have EITC, may have HSH, and/or Schedule C and
    all refundable credits present.
    Does not fit into any other QRP project codes.
    0612 70   EITC Full Scope and Schedule C Net Profit: EITC Full Scope and Net Profit Schedule C. CI Referral. The examination can include all EITC children,
    all Dependent(s),
    Filing Status,
    Child Care Credit,
    Education Credit,
    Child Tax Credit,
    Adoption Credit and
    Schedule C Net Profit.
    0621 06 CP 75/CP 75A EITC DDb - Post Refund: DDb selected cases based on rule breaks selected as a post refund.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0623 06 CP 75/CP 75A EITC-Schedule C disallow net profit: Taxpayer broke DDb rule(s) and Sch C filter(s).
    Exam issues:
    Full scope; EITC,
    dependent(s),
    filing status and
    Sch. C net profit.
    0625 30 566D EITC -Form 1040X - Recertification: Taxpayers who claim EITC and received a math error and subsequently filed a Form 8862 after 60 days.
    0642 70 566 EITC - CI - Miscellaneous: Cases referred from CI for any scheme detected by EFDS to gain EITC.
    0652 06 CP 75/CP 75A EITC - Duplicate - TIN; 2 to 4 taxpayers claiming the same SSN for EITC or Exemption.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0691 06 566 EITC Fraud: EITC cases accepted into Fraud Program for civil fraud penalty (CFP) and/or 10 Year Ban.
    0694 06 CP 75/CP 75A EITC- Recertification: Taxpayer claims EITC, has a recertification indicator and filed a Form 8862 with return.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0697 06 CP75C EITC 2-Year Ban: Taxpayers who claimed EITC while under a 2-Year Ban.
    Exam Issues:
    EITC only.
    0698 06 CP75C EITC 10 Year Ban: Taxpayers who claimed EITC while under a 10 year ban.
    Exam Issues:
    EITC only.
    0903 06 CP 75/CP 75A EITC Recertification pick up Pre-Refund: Taxpayer has prior year open PC0694 exam case and filed another return claiming EITC.
    Exam Issues:
    Full scope;
    EITC,
    dependent(s),
    filing status.
    0906 06 CP 75/CP 75A DDb Sch C Pick-up: Taxpayer has prior year open exam case and filed another return claiming EITC and Sch C net profit.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status and
    Sch C net profit
    0907 06 CP 75/CP 75A EITC Recert and Schedule C Pick Up: Taxpayer has recertification indicator, a prior year open exam case and filed another return claiming EITC and Sch C net profit
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status and
    Sch C net profit..
    0908 06 CP 75/CP 75A EITC Schedule C Only Pick Up: Taxpayer has prior year open exam case with EITC as a statutory change only.
    Exam Issue:
    Sch C net profit.
    0909 06 CP 75/CP 75A EITC Full Scope No Schedule C Pick Up:
    Taxpayer has prior year open exam case and filed another return claiming EITC.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    0981 06 566 EITC, Schedule C and Adoption Credit:
    Taxpayer broke EITC rules and Schedule C and Adoption Credit filters
    1009 06 566E Premium Tax Credit and QRP Miscellaneous questionable income, WH, EITC/credits: Identified as scheme.
    Exam Issue(s):
    Can be multiple issues; more than one wage, withholding that are false or inflated, must have EITC, PTC, may have HSH income, and/or Schedule C and all refundable credits present. Does not fit into any other QRP project codes.
    1009 08 566E Premium Tax Credit and QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as FTHBC present.
    Exam Issues(s):
    Can be multiple issues; more than one wage, withholding that are false or inflated, must have EITC and FTHBC, may have HSH income, and/or Schedule C and all refundable credits present. Does not fit into any other QRP project codes.
    1009 11 566E Premium Tax Credit and QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as prisoner.
    Exam Issues(s):
    Can be multiple issues; more than one wage, withholding that are false or inflated, must have EITC, PTC, may have HSH income, and/or Schedule C and all refundable credits present. Does not fit into any other QRP Project Code.
    1009 70 566E Premium Tax Credit and QRP - Miscellaneous questionable income, WH, EITC/credits: Identified as non-prisoner.
    Exam Issues(s):
    Can be multiple issues; more than one wage, withholding that are false or inflated, must have EITC, PTC, may have HSH, and/or Schedule C and all refundable credits present. Does not fit into any other QRP project codes.
    1024 08 566 Full scope EITC and LTRC: Taxpayer broke both EITC and LTRC rules/filters
    Exam Issues(s):
    EITC,
    dependent(s),
    filing status and
    LTRC.
    1024 30 566D EITC Claims and First Time Homebuyers Credit:
    Form 1040 manually selected for audit for EITC and any other classified issues.
    1026 06 566 Manually Classified EITC Cases:
    Form 1040 manually selected for audit for EITC and any other classified issues.
    1031 06 Letter
    566-S
    Third Party Affidavit – Post Refund:
    This program gives the taxpayer the option to use Form 14086, Qualifying Children Residency Statement Third Party Affidavit in addition to or in lieu of other supporting documentation to verify residency of a qualifying child for EITC.

    Exam Issues(s):
    Full scope,
    EITC,
    dependent(s),filing status.
    1032 06 Letter
    566-S
    Third Party Affidavit Pre-Refund:
    This program gives the taxpayer the option to use a Form 14086, Qualifying Children Residency Statement Third Party Affidavit, in addition to or in lieu of other supporting documentation to verify residency of a qualifying child for EITC.

    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status.
    1067 06 566 EITC and Adoption Credit:
    Taxpayer broke EITC rules and Adoption Credit rules/filters.
    Exam Issues:
    Full scope; EITC,
    dependent(s),
    filing status and
    Adoption credit.
    1082 06,11,70 566E Exception/Scheme.
    IVO
    AD HOC Referrals, i.e.,
    Bank Leads (Refunds returned to IRS by the financial institutions as questionable.)
    False/inflated income, withholding.
    Address Dependent(s) Filing Status, ACTC, and/or FTC, MWPC, AOTC, FTHBC, Adoption Credit, EITC RRC (if present) and any other issue that appears questionable.
    1107 06,11,70 566E Contains Household Help (HSH), (No Form W-2, No EITC, No PTC), Dependent(s), Filing Status, MWPC and if present disallow withholding, AOTC, FTHBC, FTC, ACTC, and/or Adoption Credit.
    1166 06,11,70 566E Exception/Scheme.
    IVO
    AD HOC Referrals, i.e.,
    Bank Leads (Refunds returned to IRS by the financial institutions as questionable.)
    False/inflated income, withholding.
    Address Dependent(s), Filing Status, ACTC, and/or FTC, MWPC, AOTC, FTHBC, Adoption Credit, RRC (if present) and any other issue that appears questionable.
    1172 06 566E EITC – Unsubstantiated Math Error with Schedule C filter Breaks: Taxpayers claimed EITC on original filed return and received math error notice. Taxpayer replied within 60 days filing Form 8862. Taxpayer broke Schedule C filters. Exam Issues:
    Full scope; EITC, dependent(s), filing status, Schedule C Net Profit.

    Note:

    If the taxpayer contacts us (e.g. by telephone or in writing) with a question about PTC, and based on research the case is not in a PTC project code, take the following actions:

    • Apologize for any confusion and explain to the taxpayer that they only need to provide documentation to verify the EITC audit issues (e.g. Filing Status, Exemptions, and EITC).

    • Examiner should follow normal Exam procedures, which includes documenting the workpapers/CEAS.

    1301 06 CP 75/CP 75A Premium Tax Credit and EITC -DDb Pre-refund full scope: Broke EITC rule(s)
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, and PTC.
    1302 06 CP 75 Premium Tax Credit and EITC-Schedule C disallow net profit: Taxpayer broke DDb rule(s) and Sch C filter(s). (Pre-refund)
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status and Sch. C net profit.
    1303 06 CP 75/CP 75A Premium Tax Credit and QRP - One completely false Form W-2 wage and withholding, EITC full scope: Identified as scheme.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC, dependent(s), filing status, PTC, and all refundable credits present ACTC, AOTC, or MWPC may be present.
    1303 11 CP 75/CP 75A Premium Tax Credit and QRP - One completely false Form W-2 wage and withholding, EITC full scope: Identified as prisoner.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC, dependent(s), filing status, PTC, and all refundable credits present. ACTC, AOTC, or MWPC may be present.
    1303 70 CP 75/CP 75A Premium Tax Credit and One completely false Form W-2 wage and withholding, EITC: Identified as Non-prisoner.
    Exam Issues:
    One false Form W-2 wage and withholding, EITC, dependent(s), filing status, PTC, and all refundable credits present. ACTC, AOTC, or MWPC may be present.
    1304 06 CP 75/CP 75A Premium Tax Credit QRP Schedule C, EITC, PTC, and no wages: Identified as prisoner.
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, Sch. C net profit and PTC.
    1304 11 CP 75/CP 75A Premium Tax Credit QRP Schedule C, EITC, and no wages: Identified as non-prisoner.
    Exam issues:
    Full scope; EITC, dependent(s),, filing status, Sch. C net profit, an d PTC.
    1304 70 CP 75/CP 75A Premium Tax Credit QRP Schedule C, EITC, and no wages: Identified as non-prisoner.
    Exam issues:
    Full scope; EITC, dependent(s), filing status, Sch. C net profit, and PTC.
    1305 06 CP 75/CP 75A Premium Tax Credit and EITC- Recertification: Taxpayer claims EITC, has a recertification indicator and filed a Form 8862 with return.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status.
    1306 06 CP 75/CP 75A Premium Tax Credit, EITC, and Schedule C: Taxpayer has a Recertification Indicator and broke DDb rule(s) and Sch C filter(s).
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, Sch. C net profit, and PTC.
    1307 06 CP 75/CP 75A Premium Tax Credit and Native American with full scope EITC: Native American. Form 13588, Native Americans and the Earned Income Credit, is included in mail outs as alternative documentation that can be used in lieu of Form 886-H-EIC.
    Exam Issues:
    EITC, dependent(s), filing status, and PTC.
    1308 06 CP 75/CP 75A Premium Tax Credit and EITC Full Scope, Net Profit Schedule C – Native American: EITC Full Scope and Schedule C Net Profit. Form 13588 is included to provide a list of alternative documentation that can be submitted in lieu of the items on the 886 for Native American
    Exam Issues:
    EITC, dependent(s), filing status, Schedule C net profit, and PTC.
    1309 06 CP 75A Premium Tax Credit and EITC - Duplicate TIN; 2 or more taxpayers claiming the same SSN for EITC or Exemption.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status.
    1311 06 566E Premium Tax Credit and QRP - Household Help (HSH), no Form W-2, EIC full scope: Identified as scheme. No Form W-2 or withholding. Claiming HSH, EITC, and PTC.
    Exam Issues:
    False or inflated HSH income, EITC, dependent(s), filing status, PTC, and all refundable credits present.
    1311 08 566E Premium Tax Credit QRP - Household Help (HSH), no Form W-2, EIC and FTHBC: Identified as FTHBC present. No Form W-2 or withholding, claiming HSH income, EITC, FTHBC, PTC, and all refundable credits present.
    1311 11 566E Premium Tax Credit and QRP - Household Help (HSH), no Form W-2 or withholding, EITC full scope: Identified as prisoner
    Exam Issues:
    False or inflated HSH income, EITC, Dependent(s), Filing status, PTC, and all refundable credits present.
    1311 70 566E Premium Tax Credit and Household Help (HSH), no Form W-2 or withholding, EITC full scope: Taxpayer claiming HSH and EITC. No Form W-2 or withholding. Claiming HSH and EITC.
    Exam Issues:
    False or inflated HSH income, EITC, Dependen(s)t, Filing status, PTC and all refundable credits present.
    1312 06 CP 75/CP 75A Premium Tax Credit and EITC, DDb - Post Refund: DDb selected cases based on rule breaks selected as a post refund.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status.
    1313 06 CP 75/CP 75A Premium Tax Credit EITC Recertification with Proposed 2-Year Ban: Taxpayer has a Recertification Indicator and broke DDb rule(s).
    Exam Issues:
    Full scope; EITC, dependent(s), filing status and PTC. The 2-Year Ban is proposed systemically on exam report.
    1314 06 CP 75/CP 75A Premium Tax Credit EITC Recertification Schedule C with proposed 2-Year Ban: Taxpayer has a Recertification Indicator, and broke DDb rule(s) and Sch C filter(s). The 2- Year Ban is proposed systemically on exam report.
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, Schedule C net profit, and PTC.
    1315 06 CP75C Premium Tax Credit and EITC 2-Year Ban: Taxpayers who claimed EITC while under a 2-Year Ban.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status.
    1316 06 CP75C Premium Tax Credit and EITC 10 Year Ban: Taxpayers who claimed EITC while under a 10 year ban.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status.
    1317 06 CP 75/CP 75A Premium Tax Credit DDb Pre-Refund Pick-up: Case selected because prior year case open for examination.
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, and PTC.
    1318 06 CP 75/CP 75A Premium Tax Credit and Schedule C and/or EITC Recert Pick-up: Taxpayer has prior year open exam case and filed another return claiming EITC and Sch C net profit.
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status and Sch C net profit.
    1319 06 CP 75A Premium Tax Credit and EITC full scope with Sch C Allowed:
    Exam Issues:
    Full scope; EITC, dependent(s), filing status, and PTC, with Schedule C allowed.
    1320 06 CP 75A Premium Tax Credit and EITC-Schedule C disallow net profit: Taxpayer broke DDb rule(s) and Sch C filter(s). (Post Refund)
    Exam Issues:
    Full scope; EITC, PTC, dependent(s) , filing status and Sch. C net profit.
    1322 06 566E Premium Tax Credit and NON-EITC QRP: Identified as scheme.
    Exam Issues:
    Full scope; false and/or inflated income and/or withholding, may have HSH income and refundable credits other than EITC, such as ACTC, AOTC, FTC, FTHBC, Adoption Credit, and PTC.
    1322 08 566E Premium Tax Credit and NON-EITC QRP : Identified as FTHBC present.
    Exam Issues:
    Full scope; false and/or inflated income and/or withholding, may have HSH income and refundable credits other than EITC, such as ACTC, AOTC, FTC, FTHBC, Adoption Credit, and PTC.
    1322 11 566E Premium Tax Credit and NON-EITC QRP: Identified as a prisoner.
    Exam Issues:
    false and/or inflated income and/or withholding, may have HSH income and refundable credits other than EITC such as ACTC, FTC, FTHBC, Adoption Credit, and PTC.
    1322 70 566E Premium Tax Credit, NON-EITC QRP: Identified as a Non-prisoner.
    Exam Issues:
    false and/or inflated income and/or withholding, may have HSH income and refundable credits other than EITC such as ACTC, FTC, FTHBC, Adoption Credit, and PTC..

    Note:

     

    Any of the above project codes with prisoner income will be identified with source code 11. Please refer to IRM 4.19.14.9.1.1, Prisoner Returns, for additional guidance.
  2. To work these cases, tax examiners should have knowledge of the seven auditing standards. See IRM 4.19.13.3,Seven Auditing Standards.

  3. The following issues may be examined or related statutory issues.

    • Earned Income Tax Credit

    • Dependent(s)

    • Filing Status

    • Schedule C Gross Receipts

    • Child Tax Credit

    • Child Care Credit

    • Education Credit

    • Adoption Credit

    • False or Inflated Income

    • Making Work Pay Credit

    • Premium Tax Credit

    • Shared Responsibility Payment

  4. Follow the faxed signature instructions in IRM 4.19.13.10.3,Fax Signatures, when working cases in all the project codes listed above.

  5. Unless otherwise noted under program procedures, EITC examinations are full scope audits and include EITC, dependent(s), filing status, AOTC and Schedule C as exam issues. All related statutory adjustments based on the dependent or income adjustment apply; Child Tax Credit/Additional Child Tax Credit, Adoption Credit, Child Care Credit, Student Loan Interest Deduction.

  6. Examiners should use the Project Code to determine the initial exam issue(s). Examiners are required to identify and pursue any other questionable issue(s) on the return, provided that the issues are within the scope of a campus examination.

  7. Please see IRM 4.19.11.2.1(10), Procedures for Screening Individual Returns, and IRM 4.19.13.3, Seven Auditing Standards, for more information

  8. Action 61 will apply to all cases. Procedures for Action 61 see IRM 4.19.13.11, Monitoring Overaged Replies, AIMS will send a file to Master File to systemically issue interim Letter 3500 and Letter 3501 based on update to status 54, 55, 57 and cases in status 24 SNOD issued with a mail received date.

RPS Casework Procedures

  1. The examination begins with case selection from DDb, EFDS, research extracts, classification and/or prior audit activity.

  2. Pre-Refund examination refunds will generally be frozen with the following transaction code (TC):

    • TC 810 (DDb/Unsubstantiated Pickups and Recertifications). Frozen refund is for the EITC, ACTC, and PTC amount.

    • TC 570 on QRP referral and Math Error the full refund is held.

  3. When a decision is made to partially allow:

    1. One of the two questioned qualifying children or

    2. One or two of the three questioned qualifying child(ren),

    input a TC 971 action code (AC) 135 and SSN of the allowed child or children. Inputting a TC 971 with AC 135 will allow Examination to track the allowed children(ren) to exclude from future case selection.

  4. Overview of the CP 75 Notice Series Process - the following letters are used for EITC examinations:

    • CP 75 letter is used for pre refund cases to inform the taxpayer that we are delaying the EITC, and/or the ACTC part of his/her refund. If the PTC is claimed then we may hold all or a part of the refund.

    • CP 75 A letter is used for post refund or cases with a balance due or zero balance so there is no refund to hold.

    • CP 75D is used for pre-refund QRP cases in PC 0173 and 0584, pre-refund QRP cases with PTC in PC 1303 and 1304, and EITC and FTHBC cases in PC 0099 and 0585. This letter informs the taxpayer that we've delayed sending their full refund.

    • The CP 75, CP 75A and CP 75D contains specific paragraphs that explain the issues being examined. These paragraphs are designated by Project Code; see below. The notices include the related attachments that explain the documentation needed to support the issues under examination.

    • The CP 75C is issued for 2/10 Year Ban (PC 0697/0698) cases. The program is centralized in Austin and Brookhaven. CP 75C is used to inform the taxpayer their refund is frozen. The CP 75C is not an initial contact letter. The next letter is the Letter 3219, Statutory Notice of Deficiency. The 2/10 year ban cases with PTC (PC 1315/1316) will be issued an initial contact letter CP 75. These cases will also be centralized in Austin and Brookhaven.

    • Once the CP 75, CP 75A or CP 75D is generated by Master File, dated and mailed, and the case is updated to status 10, which will trigger cycle time to start.

    • The taxpayer should know from the explanations and related attachments what the specific issue(s) are being examined and has the option to provide the documents requested or they can agree they are not entitled.

    • As the case ages through ACE, the batch process, the CP 75, CP 75A, CP 75D Notices will be followed by 30 day Letter 525, General 30 Day Letter, which includes an examination report - Form 4549EZ, Income Tax Examination Changes, outlining the proposed changes. This will provide another opportunity for the taxpayer to send in the documentation needed or agree to the changes. The taxpayer is asked to respond within 30 days.

    • The case will continue to age through ACE for the issuance of the Letter 3219, Statutory Notice of Deficiency. This will provide another opportunity for the taxpayer to send in the documentation needed or agree to the changes. The taxpayer is asked to respond within 90 days and has the option to petition tax court if they disagree. If no resolution is met and the taxpayer does not petition tax court, after 105 days (150 days if the taxpayer address is outside the United States) the case is closed as a default.

     

  5. The CP 75, CP 75A and CP 75D will include the paragraphs below based on the applicable Project Code and examination issues.

    Issue A-1: 0029, 0061, 0099, 0173, 0261, 0289, 0390, 0584, 0585, 0587, 0621, 0623, 0624, 0652, 0906, 0909, 1301, 1302, 1303, 1304, 1309, 1311, 1312, 1319, 1320:

     

    Earned Income Tax Credit (QC Test)

    • Review the enclosed Form 886H-EIC, Documents You Need to Send to Claim the Earned Income Credit On the Basis of a Qualifying Child or Children for Tax Year..

    • Submit the documentation requested to show your child met the relationship, age and residency tests to qualify you for the Earned Income Credit.


     

    Issue A-2: 0291, 0292, 1307, 1308:

     

    Earned Income Tax Credit (Native American)

    • Review the enclosed Form 886H-EIC, Documents You Need to Send to Claim the Earned Income Credit On the Basis of a Qualifying Child or Children for Tax Year and Form 13588, Native Americans and the Earned Income Credit.

    • Submit the documentation requested on either of these forms to show your child met the relationship, age and residency tests to qualify you for the Earned Income Credit.


     

    Issue A-3: 0257, 0694, 1305, 1306:

     

    Earned Income Credit (Recert)

    • You must show that you qualify for EIC since we denied or reduced your EIC during an examination for a previous tax year.

    • Review the enclosed Form 886H-EIC, Documents You Need to Send to Claim the Earned Income Credit On the Basis of a Qualifying Child or Children for Tax Year..

    • Submit the documentation requested to show your child met the relationship, age and residency tests to qualify you for the Earned Income Credit.


     

    Issue A-5: 0027, 0028, 1313, 1314:

     

    Earned Income Credit (Recert/ 2Yr Ban):

    • You must show that you qualify for EIC since we denied or reduced your EIC during an examination for a previous tax year.

    • Review the enclosed Form 886H-EIC, Documents You Need to Prove You Can Claim the Earned Income Credit On the Basis of a Qualifying Child or Children for Tax Year.

    • Submit the documentation requested to show your child met the relationship, age and residency tests to qualify you for the Earned Income Credit.

    • If you do not prove that you were eligible to claim the Earned Income Credit, we may ban you from claiming the Earned Income Credit for two years.

    Issue A-6: 1315, 1316

     

    Earned Income Credit (2/10 Year Ban / PTC):

    • You were banned from claiming the Earned Income Credit because you intentionally disregarded the rules or made a fraudulent claim.

    • Because your ban is still in effect, we are not allowing you the Earned Income Credit

    • No further action is needed concerning the Earned Income Credit.


     

    Issue B: : 0027, 0028, 0029, 0061, 0099, 0173, 0257, 0261, 0289, 0291, 0292, 0390, 0584, 0585, 0587, 0621, 0623, 0652, 0694, 0903, 0906, 0907, 0909, 1301, 1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1311, 1312, 1313, 1314, 1317, 1318, 1319, 1320

     

    Dependents:

    • If you claimed dependent(s) on your tax return, review the enclosed Form 886H -DEP, Supporting Documents for Dependency Exemptions

    • Submit the documentation requested to show you have eligible dependents.


     

    Issue C: 0027, 0028, 0029, 0061, 0099, 0173, 0257, 0261, 0289, 0291, 0292, 0390, 0584, 0585, 0587, 0621, 0623, 0652, 0694, 0903, 0906, 0907, 0909,1301, 1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1311, 1312, 1313, 1314, 1317, 1318, 1319, 1320


     

    Filing Status:

    • If you claimed the Head of Household Filing Status on your tax return, review the enclosed Form 886H-HOH, Supporting Documents to Prove Head of Household Filing Status.

    • Submit the documentation requested to show you are the head of your household.


     

    Issue D-1: 0028, 0257, 0292, 0585, 0623, 0906, 0907, 1302, 1306, 1314, 1318, 1320


     

    Schedule C Income:

    • Review the enclosed Form 11652, Questionnaire and Supporting Documentation, Form 1040 Schedule C (Profit or Loss from Business).

    • Submit the completed Form 11652 with documentation requested to show you had earned income.


     

    Issue D-2: 0173, 1304

     

    Schedule C Income (QRP):

    • Review the enclosed Form 11652, Questionnaire and Supporting Documentation, Form 1040 Schedule C (Profit or Loss from Business).

    • Submit the completed Form 11652 with documentation requested to show you had earned income.


     

    Issue E: 0584, 1303

     

    Wages and Withholding:

    • Review the enclosed Form 886L, Supporting Documents.

    • Submit the documentation requested to show the amount of wages and withholding you listed on your tax return is correct.


     

    Issue F: 0027, 0028, 0029, 0061, 0099, 0173, 0257, 0261, 0289, 0291, 0292, 0390, 0584, 0585, 0587, 0621, 0623, 0652, 0694, 0903, 0906, 0907, 0909, 1301, 1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1311, 1312, 1313, 1314, 1317, 1318, 1320

     

    American Opportunity Credit :

    • If you claimed the American Opportunity Credit on your tax return, review the enclosed Form 886H-AOTC, Supporting Documents to Prove American Opportunity Tax Credit.

    • Submit the documentation requested to show you had eligible education expenses.


     

    Issue H: 0390, 1311

     

    Household Help:

    • Submit documentation to show the amount of household wages you claimed on your tax return is correct.

    • Send us documentation showing your earnings were for household work.


     

    Issue J: 1301, 1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1311, 1312, 1313, 1314, 1315, 1316, 1317, 1318, 1319, 1320

     

    Premium Tax Credit:

    • Review the enclosed Form 14950, Premium Tax Credit Verification.

    • Submit the documentation requested to show you are entitled to claim the Premium Tax Credit.

Revenue Protection Strategy (RPS) Examination Process

  1. Cases must move to the next status based on established time frames. See IRM 4.19.10,Examination General Overview, for applicable EITC time frames. The chart below explains the letter and AIMS status update process:

      1st exam letter 2nd Letter 3rd letter - if needed 4th Letter 5th letter - if needed
    Letters CP 75, CP 75A, CP 75D, 566, 566E 525 692 3219 555
    Status (ST) AIMS ST10 AIMS ST22
    • AIMS ST23 if the Form 4549/4549EZ has been changed

    • AIMS ST25 if Form 4549/4549EZ remains the same

    AIMS ST24 AIMS status does not change from ST24
    Letters CP 75C 3219      
    Status
    • Not an ICL

    • No AIMS Status update

    • AIMS Status 24

         
    Letters 566D - Form 1040X with no additional tax 569 105C    
    Status
    • AIMS Status 10

    • AIMS Status 22

    • AIMS Status 90

       
    Letters 566D - Form 1040X with additional tax 525 3219 105C  
    Status
    • AIMS Status 10

    • AIMS ST22

    • AIMS ST24

    • AIMS ST90

     

Evaluating EITC Taxpayer Responses

  1. Judgment must be used based on the facts and circumstances in each case to make a substantially correct determination. Workpapers must contain determinations, facts, and circumstances specific to the case obtained either by telephone or written correspondence.

  2. When allowing Earned Income Credit based on a qualifying child, the child must meet all three tests: Relationship, Age, and Residency. See IRC 32.

  3. Research DUPOL, AIMS, TXMOD, IMFOL, DDBOL, DDBKD and INOLE for each taxpayer and qualifying child to identify certain information about the qualifying child (e.g., name, date of birth, citizenship code, birth parent’s name, custodial data, etc.) See IRM 4.19.13.4, Researching Cases for a list of other IDRS command codes and research tools.

  4. The Internal Revenue Code requires a taxpayer (both husband and wife in the case of a joint return) to have a valid social security number (SSN) issued by the Social Security Administration (SSA) on or before the due date of the tax return (with extensions) to claim the EITC. Any qualifying child listed on Schedule EIC must also have a valid SSN issued on or before the due date of the return. Check INOLES for the issuance date of the SSN.

    DDBKD Citizen Indicator Description
    A U.S. Citizen
    B Legal Alien — Authorized to Work
    C Legal Alien — Not Authorized to Work
    D Other
    E Alien Student —Restricted Work Authorized
    F Conditionally Legalized Alien — If the application was submitted prior to November 1980, this item will be blank.

    If Citizenship Indicator is not A or B, continue researching to determine if the Taxpayer is entitled to EITC based on a "Valid for Work" Social Security number.

    Note:

    "VALID FOR WORK ONLY WITH DEPARTMENT OF HOMELAND SECURITY (DHS) AUTHORIZATION"
    Social Security cards are issued to people lawfully admitted to the United States on a temporary basis who have DHS authorization to work. Once the DHS authorization has expired, the SSN is no longer valid. And without a valid SSN, a taxpayer cannot claim the EITC.

    • "Not Valid for Employment" Social Security cards are issued to two groups of aliens: (1) lawfully admitted aliens who are not permitted to work in the United States, but who need an SSN for a reason unrelated to work, and (2) aliens who are not lawfully admitted to the United States, but who need an SSN to obtain a benefit that is paid for in part or in full with federal funds.

    • When analyzing an EITC claim, check the Social Security Cards for the primary and secondary taxpayers, as well as qualifying children listed on Schedule EIC, for the words Not Valid for Employment. If these words appear on any of the applicable Social Security cards, you will need to find out whether the card holder is now a citizen or permanent resident by the due date of the return, including extensions. If the cardholder was either a citizen or resident by the due date of the return, including extensions he or she is entitled to receive a Social Security card without the legend (same number, but no legend). The cardholder may already have the new card. If the cardholder’s immigration status has not changed, you will need to find out whether the cardholder received the SSN to obtain a federally funded benefit, or for another reason. Take the following actions: Contact the taxpayer to find out whether the cardholder was a citizen or permanent resident of the United States by the date of the return. If the cardholder is a citizen or permanent resident, ask the taxpayer to furnish a new Social Security card without the legend. Refer to IRM 4.19.13.4 (4), Researching Cases, for additional guidance in determining the effective date for the issuance of the SSN.

    If and Then
    The cardholder is now a citizen or permanent resident A new Social Security Card without the legend is furnished by the taxpayer The SSN is a valid SSN for the EITC
    The cardholder’s immigration status has not changed Taxpayer states the reason for needing an SSN and it is other than to obtain a federally funded benefit The SSN is a valid SSN for the EITC
    The cardholder’s immigration status has not changed The taxpayer is unable to furnish a reason for needing an SSN other than to obtain a federally funded benefit The SSN is a valid SSN but not valid for the EITC

    Note:

    If the taxpayer (and spouse if any) and one qualifying child have valid SSNs for the EITC, but the second qualifying child does not, allow the EITC for a taxpayer with one qualifying child.

    Note:

    Before 1996, the taxpayer or child might have needed an SSN for tax purposes, and the SSN might have been obtained at an embassy. Before 2002, the taxpayer or an older child might have needed an SSN to get a driver's license or to register a vehicle in certain states.

    Note:

    A common reason for getting a Social Security card may be for Medicaid benefits. These SSNs are issued to obtain a federally funded benefit.

    Note:

    Starting in tax year 2009, the uniform definition of a child for EITC changed. The taxpayer must now be older than the qualifying child unless the child is disabled.

EITC Qualifying Child (QC)

  1. The following table is for use with the EITC Qualifying Children. See Exhibit 4.19.14-1 , Examples of Acceptable Documentation for EITC claims (not all-inclusive) for the types of documentation needed to establish the relationship or residence of a qualifying child. In addition, the examiner should consider all documentation submitted, even if it is not listed and use their best judgment when considering the weight of the evidence to determine eligibility for the credit.

    EITC (QC) Acceptable Documentation
    Relationship
    Same as dependent QC
    Per IRC 32(c)(3)(A) the term "qualifying child " means a qualifying child of the taxpayer (as defined in Section 152 (c) Birth certificates -- For Example: If the dependent the taxpayer is claiming is the child of the taxpayer's sibling, which is his niece or nephew that lived with them, the taxpayer would need to provide:
    1. a copy of their birth certificate,

    2. a copy of the birth certificate of the taxpayer's sister or brother that is the parent of the child, and

    3. a copy of the birth certificate of the child claimed

    All three birth certificates would be required to show the relationship linkage.
    • Marriage Certificates that verify your relationship to the child

    • Letter from an authorized adoption agency

    • Letter from an authorized placement agency or applicable court document

    • Social Services records

    • Parole Office files

    • Military Records

    Examples of proof:
    1. Defense Enrollment Eligibility Reporting System (DEERS), which provides a list if authorized dependents whose relationship, has been verified.

    2. Leave and Earnings Statements (LES), which verifies if the taxpayer is paying voluntary allotment for Basic Housing Allotment (BHA) payable to the dependents or custodial parent, or if the taxpayer is having child support payments garnished.

    Note:

    An individual legally adopted by the taxpayer or an individual who is lawfully placed with the taxpayer for legal adoption is treated as a child of the taxpayer by blood. An eligible foster child is an individual who is placed with the taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. The terms "brother" and "sister" includes siblings who only have one parent in common, for example the same mother but different fathers.

     

    Caution:

    The Government of Puerto Rico enacted a new law (Law 191 of 2009 as Amended). Effective October 31, 2010, any Puerto Rican birth certificate issued prior to July 1, 2010 is no longer valid. If a taxpayer submits a birth certificate that was issued by the Puerto Rican government prior to July 1, 2010, the birth certificate should not be accepted. The taxpayer should be informed of the new law and directed to contact the Puerto Rico Vital Statistics Record Office to request a new birth certificate.

    Residency
    More than 1/2 the year in the United States
    Per IRC 32(c)(3)(C) For purposes of subparagraph (A), the residency requirements of Section 152(c)(1)
    (B) shall be met only if the principal place of abode is in the United States.
    Relatives and members of household in the United States for more than half of the year IRC152(c)(1)(B)
    Temporary absences count as time lived together; Exceptions apply for children of divorced or separated parents IRC152(e)
    Birth or death during the year count for more than one-half or the entire year if QC lived with taxpayer the entire time alive IRC152(f)(6)(B)(iv)
    • Photocopies of school, medical, childcare provider (provider can’t be a relative) or social service records, rental agreement, eviction notice, parole office files, bank statements, check stubs/earnings statements.

    Note:

    While the majority of report cards do not have all the required information for residency, they should be reviewed on a case to case basis to determine if they chow the child’s name, address of record, and a verifiable date with the year in question.”

    • A letter on official letterhead from a school, a health care provider, a social service agency, placement agency official, employer, Indian tribal official, landlord or property manager, or a place of worship that shows the name of child's parent or guardian, child's address and the dates that they lived with taxpayer

    Note:

    There are templates on irs.gov (located at:https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/letter-or-audit-for-eitc)he taxpayer can use to secure the correct information requested from the school, healthcare provider or childcare provider to verify the qualifying child’s residency to claim the EITC. The templates must be pasted on the organization’s letterheads.


    There are several ways the templates can be shared with the providers. The taxpayer can print and give the templates or share the link to the templates to their child’s school, healthcare provider or childcare provider. Make sure to tell the taxpayer to inform the provider of the tax year from their notice (the tax year is found in the upper right hand corner of their notice) to receive information for the correct tax year.


    Remind the taxpayer that the school, the healthcare provider, or the childcare provider should paste the template or replicate the information into their letterhead. They should also fill in all the information needed for the tax year shown on the taxpayer’s notice. The letter should be dated and signed, and the taxpayer can mail or fax the completed documents to support their EITC claim.

    Age
    Same as dependent QC
    • QC must be younger unless permanently and totally disabled.

    Per IRC 32(c)(3)(A) age requirements are the same as defined in IRC 152(c)(3). Refer to IRM 4.19.14.6.5 Same as dependent QC Refer to IRM 4.19.14.6.6
    Support   Support is not an issue with EITC
    Citizenship Citizen/national/ resident alien of the United States, resident of Canada or Mexico / adopted child. Exception IRC 152(b)(3)

    Note:

    Refer to Publication 519, U.S. Tax Guide for Aliens.

    Birth certificate, driver’s license, school records, library card, parole office files, “green card” or other DHS documents.
    • A resident alien of the United States who does not have a green card must show either (1) the substantial presence test was met, or (2) he or she resided in Canada or Mexico.

    • Use IDRS Command Code DDBKD to research QC citizenship status.

    Social Security Number The qualifying child must have a valid social security number (SSN) unless the child was born and died in the same tax year.

    Note:

    You cannot claim the EITC on the basis of a qualifying child if:

    1. The SSN was not issued on or before the due date of the return, including extensions, or

    2. The qualifying child’s social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit.

    A copy of the child's birth certificate, death certificate, or hospital records showing a live birth.

    Refer to IRM 4.19.13.4, Researching Cases, (4) for guidance in determining the effective date for the issuance of the SSN.
    Married Child Joint Return
    • Return filed only as a claim for refund.

    Per IRC 152(c)(1)(E). A qualifying child shall not include an individual who is married as of the close of the taxable year, unless the qualifying child (e.g. taxpayer) is only filing a claim for refund only and no tax liability would exist for either spouse on separate returns.  
    Tiebreaker Rules Per IRC 152(c)(4) for EITC purposes a QC may be claimed by a parent or the taxpayer with the highest adjusted gross income (AGI), if not claimed by the parent.

    Example:

     

    If more than 1 parent claims the qualifying child:
    If the parents claiming a qualifying child do not file a joint return together, the child shall be treated as the qualifying of --
    1. the parent with whom the child resided for the longest period of time during the taxable year, or

    2. if the child resides with both parents for the same amount of time during the taxable year, the parent with the highest AGI.

    Example:


    If No parent claims the child for EITC:


    If the parents of a child are eligible to claim them as a QC, but no parent claims the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of either of the child's parents who can claim the child. If the child's parents file a joint return with each other, this rule can be applied by treating the parents total AGI as divided evenly between them.

    Note:

    If married, the taxpayer must file a joint return to be eligible to claim EITC.

    IRC 32(d).
    • IDRS research (e.g., INOLES, NAMES) to identify other household members, and/or recent names changes by the taxpayer.

    Requirements and Special Rules
    Married child must be claimed as a dependent or not claimed as a dependent under rules of divorced or separated parents
    Taxpayer cannot be QC for EITC of anyone else
    • IDRS research

    • DDBKD

    Do Master File research of all TIN’s listed on (DDBOL).
    Do Master File research of DDBKD it shows relationship and also indicates if the taxpayer was the QC of someone else.
    Do INOLE research for age verification and TIN/SSN issuance date. See IRM 4.19.13.4, Researching Cases.
    Request proof of separate residence from the person claiming the qualifying child, such as rent receipts, school records, property tax bill, or utility receipts, if research indicates taxpayer is married.

EITC - No Qualifying Child

  1. Taxpayers may be allowed EITC even though they do not have a qualifying child (QC) if they meet the following requirements.

    If And Then
    Earned Income Tax Credit is disallowed because the taxpayer does not have a (QC), allow EITC for self only based on certain criteria (age, income, etc.).

     

    Note:

    The EITC for self may be allowed by the examiner at any time during the audit process, after the taxpayer has responded (e.g. called in or submitted a reply).

    1. Taxpayer is at least 25 but under 65 years of age,

    2. Taxpayer does not qualify as a dependent of another person,

    3. Taxpayer is not a QC of another person,

    4. Taxpayer lived in the U. S. for more than half the tax year and,

    5. Taxpayer SSN was issued on or before the due date of the return including extensions

    • Use birth certificate or IDRS research Command Code INOLE or RTVUE to verify taxpayer's date of birth.

    • Do INOLE research for TIN/SSN validation and the issuance date.

    • Use Command Code DDBKD to determine if taxpayer has been claimed by another taxpayer.

    Note:

    If an individual is the QC of another taxpayer for any part of the taxable year, that individual is not eligible to claim EITC for self.

    Note:

    Taxpayers that were disallowed EITC for a QC under the tie-breaker rule, may still qualify for EITC for taxpayers without a QC.

  2. Taxpayers who do not qualify for EITC with QC can receive EITC without QC. Prepare a Form 4549 to reflect the lower EITC amount, if taxpayer meets the requirements above.

  3. If the taxpayer is married filing a joint return, either taxpayer must be at least 25 but under 65 at the end of the tax year. It does not matter which spouse meets the age test, as long as one of the spouses does. For example, Joe and Jane are married and file a joint return. Joe is 23 and Jane is 27. The taxpayers meet the age test because Jane is at least 25 but under age 65.

EITC - Schedule C Responses

  1. The following guidelines apply to Schedule C response case:
    When the taxpayer is being examined for the income reported on Schedule C, Form 11652 will be sent as enclosure with the CP 75, Initial Contact Letter. Form 11652, Questionnaire -- Form 1040 Schedule C (Profit or Loss From Business), instructs the taxpayer to send copies of Form(s) 1099-MISC , business license, business records, expenses, copies of state and/or local sales tax returns for the tax year in question if any or all are applicable.
    When considering the response received to the examination query letter, examiners should use Form 11652 as a guide to manage the outcome of the income query. The form asks the taxpayer to submit a Form 1099 - MISC, business license, expenses, state and/or local sales tax returns, if they are not provided, you should request that the taxpayer provide written records of income.
    If the taxpayer fails to provide any documentation requested to support information on Form 11652, and indicates that accounting books, computer records etc. are maintained, ask taxpayer to submit copies for verification. It should be noted that a business license alone would NOT substantiate SE income. The taxpayer would have to provide additional records noted above to validate the income reported on the Schedule C.
    It is not necessary to verify every expense reported on the Schedule C, rather the tax examiner should ensure the types and amounts of expenses substantiated are in line with the type of business activity shown on Schedule C.

    If And Then
    Schedule C response is received Taxpayer submits a Form 1099 only Verify Entity of Payer (CC BMFOL) and Payer Master File (CC PMFOL see Note)
    If the entity is valid and PMFOL matches Accept Schedule C income.
    If not valid and PMFOL does not match Do not Accept Schedule C income.
    Inform taxpayer our records did not validate payer information.
    Inform the taxpayer that acceptable payer information will be a letter on business letterhead verifying the amount paid.
    If taxpayer is unable to obtain letter from payer, offer other options to verify income. See additional guidance below.
    Schedule C Response is received Taxpayer submits written records of income
    • Books and Records

    • Receipts for business expenses

    • Cancelled checks for Business Account

    • Bank statements

    • Some or all of the above

    Accept Schedule C income if it appears that the information provided substantiates the business.
     

    Note:

    If statements or other records indicate more income, than reported on Sch. C, issue a revised report to reflect the correct income.

    Schedule C Response is received Taxpayer submits verification of expenses that would prove the existence of a business e.g.,
    • Advertising

    • Commission paid

    • Wages paid

    • Appropriate licenses

    • Permits

    • Insurance

    • Cost of Goods sold, etc.

    Accept Schedule C income as long as the types of expenses match with the type of business reported on the return.
    Schedule C Response is received Taxpayer submits copies of state tax returns (and/ or local) (Not personal income tax returns) Accept Schedule C income as reported as long as the sales tax return shows revenue in line with the Schedule C income.

    Note:

    See IRM 2.3.53, Command Code PMFOL, for input screen and additional information on command code PMFOL.

     

  2. Procedures for working Classifier identified issue(s). For guidance with Schedule C responses.

    If And Then
    Schedule C expenses are identified by the classifier The taxpayer sends in receipts and cancelled checks to verify them Accept the expenses.
      The taxpayer does not send in receipts and cancelled checks Deny the expenses
    Schedule C Income is identified by the classifier The taxpayer submits a Form 1099 Verify Entity of Payer (CC BMFOL) If valid Accept Schedule C. If Not valid Do not accept Schedule C
      The taxpayer submits written records of income books, bank statements Accept Schedule C
      The taxpayer submits verification of certain expenses that would prove the existence of a business (e.g., advertising, commissions paid, wages paid, appropriate licenses, permits, insurance, cost of goods sold, etc.) Accept Schedule C


     

  3. If documentation is received that validates the existence of a business after the issuance of the Statutory Notice of Deficiency (SNOD) and the case is open, process the case as outlined below:

    If And Then
    The time to petition Tax Court has not expired Sufficient time left in the statute Prepare a supplemental report for the increased deficiency requesting the taxpayer to sign for the higher deficiency amount.
    If the Taxpayer signs, close on the higher deficiency.
    If Taxpayer does not sign or respond, allow the SNOD to expire, purge on the 105th day, prepare corrected Form 4549 and reissue the SNOD for full amount of deficiency (EITC amount).
    In the explanation to Taxpayer, there must be a statement This Notice of Deficiency supersedes the Notice of Deficiency dated MMDDYYYY (date of previously issued SNOD)
    The time to petition Tax Court has expired Sufficient time left in the statute Allow the 105th day purge, Prepare corrected F4549 and reissue the SNOD for full amount of deficiency (EITC amount).
    In the explanation to Taxpayer, there must be a statement This Notice of Deficiency supersedes the Notice of Deficiency dated MMDDYYYY (date of previously issued SNOD)


     

  4. If Taxpayer responds with request to remove Schedule C income and Schedule C income is not an issue on the original audit. Process the case as outlined below:

    If And Then
    Taxpayer responds Schedule C income Taxpayer indicates that Schedule C income was reported in error (no indication of recklessness or fraud), i.e., Preparer included without the Taxpayer knowledge Remove the income from the return
    Taxpayer responds with request to remove Schedule C Income Taxpayer indicates that Schedule C income was made up (some indication of recklessness or fraud) Forward the case to your Fraud Coordinator. If not taken into the Fraud program, remove income and consider asserting a 2- Year Ban

    Note:

    When deciding to remove income, the taxpayer's credibility should be part of the decision process. Do you believe them or not? A 2-Year Ban and/or Penalty can be asserted based upon the facts and circumstances of the case.


     

  5. If taxpayer responds with request to remove income on a Claim.

    If And Then
    Taxpayer requests to remove Schedule C Income when EITC was disallowed. Schedule C was not an issue on the original audit. Taxpayer indicates that Schedule C income was reported in error (no indication of recklessness or fraud), i.e., Preparer included without the Taxpayer knowledge. There is no record of Form 1099 - NEC income Remove the income from the return.
    Taxpayer requests to remove Schedule C Income when EITC was disallowed. Schedule C was not an issue on the original audit. Taxpayer indicates that Schedule C income was reported in error (indication of recklessness or fraud). There is a record of Form 1099 - NEC income Inform the taxpayer that they should contact the payer and request a corrected document, Form 1099, removing the erroneously reported income.

    If the taxpayer is not able to contact the payer, or if the payer refuses to send a corrected document; have taxpayer send or fax a letter of explanation to the address on their letter and the examiner will evaluate the response.

    If the taxpayer cannot verify that the income should be removed, leave the income on the return and follow Claim Disallowance procedures.
  6. If documentation is received that validates the existence of a business on Reconsideration, process the case as outlined below:

    If And Then
    Schedule C and EITC were disallowed on the original audit. There is time left in the statute Taxpayer verifies Schedule C and qualifying children for EITC Allow Recon
    Schedule C and EITC were disallowed on the Original Audit. There is time left in the statute Taxpayer verifies Schedule C but does not verify qualifying children for EITC Allow Recon. Input TC 290 for SET. Taxpayer must sign for the tax increase. If signature not received, will need to issue SNOD.
    Schedule C and EITC were disallowed on the Original Audit. There is time left in the statute Taxpayer verifies qualifying children for EITC but does not very Schedule C If there is no other income other than the Schedule C disallowed income, then no EITC should be input.

    But if there is other income on the return, allow EITC based on the allowable income.
    Schedule C and EITC was disallowed on the original audit. The statute has expired. Taxpayer verifies Schedule C and qualifying children for EITC Allow Recon. TC 290 can not be input for the SET increase due to the expiration of the statute.
    Input TC 764 for the refundable amount of the EITC (difference between the SET and EITC).

    Move the remaining SET monies to Excess.
    In the explanation to the taxpayer, you must state: that the tax return was timely filed within the prescribed time frame when the income was earned and a determination of the total Social Security Income to be posted to the taxpayers earnings record.

    It is the responsibility of the Taxpayer to notify SSA to update their records. Form 3999, Statute Expiration Report, must be prepared to report the barred SET amount.
  7. If taxpayer responds with request to remove income on Reconsideration and the Schedule C was not an issue on the original audit. Process the case as outlined below:

    If And Then
    Taxpayer responds with request to remove Schedule C Income Taxpayer indicates that Schedule C income was reported in error (no indication of recklessness or fraud), i.e., Preparer included without the Taxpayer knowledge. Remove the income from the return.
    Taxpayer requests to remove Schedule C Income when EITC was disallowed on original audit but Schedule C was not questioned. Taxpayer indicates that Schedule C income was reported in error (indication of recklessness or fraud). There is a record of Form 1099 - NEC income Inform the taxpayer that they should contact the payer and request a corrected document, Form 1099, removing the erroneously reported income.

    If the taxpayer is not able to contact the payer, or if the payer refuses to send a corrected document; have taxpayer send or fax a letter of explanation to the address on their letter and the examiner will evaluate the response.

    If the taxpayer cannot verify that the income should be removed, leave the income on the return and follow Claim Disallowance procedures.

EITC - Filing Status

  1. Following are guidelines to determine if the taxpayer qualifies for "Single" filing status:

    If: Accepted proof of status:
    The taxpayer was never married. No prior history of filing "Married Filing Jointly" or "Married Filing Separately" .
    or  
    The taxpayer was unmarried or legally separated from his/her spouse under a divorce or separate maintenance decree, and the taxpayer does not qualify for another filing status. Copy of divorce decree or separate maintenance. If decree or agreement is dated any day prior to the last day of the year, the taxpayer is considered single for the entire year.
    or  
    The taxpayer was widowed before January 1 of the tax year, and did not remarry before the end of the year. Copy of death certificate for spouse.`
  2. Following are guidelines to determine if the taxpayer qualified for "Married Filing Jointly" filing status:

    A Taxpayer's filing status is "Married Filing Jointly" if: Accepted proof requirement
    The taxpayers are legally married on the last day of the year and both agree to file under this status.

    Taxpayers must be either living together as husband and wife, or living apart but not legally separated under a decree of divorce or separate maintenance.
    Both signatures on the return verify consent of both parties. If prior year’s return shows single or head of household, request proof of marriage; the taxpayers bear the burden of proof.
    or  
    Taxpayers are living together in a common law marriage that is recognized in the state where they live or in the state where the common law marriage began.

    (The 9 states that recognize common law marriages are CO, IA, KS, MT, OK, RI, SC, TX, UT and the District of Columbia).

    In order to have a valid common law marriage, the taxpayer and common law spouse must live together for a significant period of time, hold themselves out as a married couple and intend to be married.
    See IRM 5.19.11.7.1.2.2 ,Common Law Marriage.
    At least two types of documentation to substantiate a claim of common law marriage must be provided. Examples of proof are:
    • Deeds showing title to property held jointly by both parties to the common law marriage

    • Bank statements and checks showing joint ownership of the accounts

    • Insurance policies naming the other party as beneficiary

    • Birth certificates naming the taxpayer and the common law spouse as parents of their children

    • Loan documents, mortgages, and promissory notes evidencing joint financial obligations

    or  
    The taxpayer’s spouse died during the year. Death certificate of spouse.
  3. Following are guidelines to determine if the taxpayer qualifies for "Head of Household" filing status:

    HOH-Unmarried Taxpayer Acceptable Documentation
    Relationship Meets QC or QR minus non relative household member IRC 2(b)(1)(A)(i)and(ii) and IRC 2(b)(3)(B)(i).
    Taxpayer is considered not married if spouse is a non resident alien IRC 2(b)(2)(B)
    Same as Dependent QC or QR .IRM 4.19.14.12.2
    Residency More than 1/2 year except for dependent parents IRC 2(b)(1)(A)and(B) Same as Dependent QC IRM 4.19.14.12.2
    Age N/A  
    Support Pay for more than 1/2 cost of keeping up a home IRC 2(b)(1).
    If for dependent parents, must pay more than 1/2 cost of keeping up a home that was the parents main home for the entire year IRC 2(b)(1)(B)
    Proof of living in the same residence such as: Rent receipts, utility bills, grocery receipts, property tax bills, mortgage interest statement, upkeep and repair bills, property insurance statement, and other household bills
    Citizenship A married child who fails the citizenship test cannot be a qualifying person for HOH IRC 2(b)(1)(A)(i)(I) Birth certificate, citizenship papers, Social Security Card. School Records
    Married Child Joint Return A married child who fails the joint return test cannot be a qualifying person for HOH IRC 2(b)(1)(A)(i)(I) Receipts for food, clothing, rent, medical, dental schooling, recreation, and personal items.

    If two people are claiming the same QC receipts may be needed from both.
    Tie- Breaker Rule Yes IRC 2(b)(1)(A)(i)  
    Requirements and Special Rules QC must meet QC age and QC support tests IRC2(b)(1)(A)(i)
    QR must be dependent IRC 2(b)(1)(A)(ii)
    Multiple support QR does not apply IRC 2(b)(3)(B)(ii)
    Same as Dependent QC IRM 4.19.14.12.2
    HOH-Considered Unmarried Taxpayer Acceptable Documentation
    Relationship Child, adopted child, step child, eligible foster child IRC 7703(b)(1) Same as Dependent QC or QR IRM 4.19.14.12.2.
    Residency More than 1/2 year IRC 7703(b)(1) Same as Dependent QC IRM 4.19.14.12.2.
    Age N/A  
    Support Pay for more than 1/2 cost of keeping up a home IRC 7703 (b)(2) Same as HOH - Unmarried taxpayer IRM 4.19.14.9.1
    Citizenship A married child who fails the citizenship test cannot be a qualifying person for HOH IRC 2(b)(1)(A)(i)(I) Same as HOH - Unmarried taxpayer IRM 4.19.14.9.1
    Married Child Joint Return A married child who fails the joint return test cannot be a qualifying person for HOH IRC 2(b)(1)(A) (i)(I) Receipts for food, clothing, rent, medical, dental schooling, recreation, and personal items.

    If two people are claiming the same QC receipts may be needed from both.
    Tiebreaker Rules Yes IRC 2(b)(1)(A)(i)  
    Requirements and Special Rules Child must be dependent QC or QR without regard to exceptions for divorced or separated parents IRC 7703(b)(1)
    Other rules residence of spouse for last six months of the year apply.
     

    Note:

    The taxpayer and spouse must maintain separate residences and must have lived apart for the last six months of the year.

  4. Following are guidelines to determine if the taxpayer qualifies for "Qualifying Widow(er) with Dependent Child" filing status:

    A Taxpayer’s filing status is "Qualifying Widow(er) With Dependent Child" if: and Accepted proof
    The taxpayer is filing within two years of the year that the spouse died The taxpayer did not marry before the end of the current filing year Death certificate.
    The taxpayer is filing within two years of the year that the spouse died The taxpayer has a child, stepchild, adopted child, or child lawfully placed with the taxpayer for legal adoption by the taxpayer for whom he/she can claim an dependent. Birth certificate, school records, adoption records
    The taxpayer is filing within two years of the year that the spouse died The taxpayer paid more than half the cost of keeping up a home that is the main home for him/her and that child for the entire year. Receipts and bills for rent, mortgage interest, property taxes, utility charges, upkeep and repairs, property insurance, food consumed in the residence.

    Note:

    The taxpayer and spouse most maintain separate residences and most have lived apart for the last six minutes of the year.

  5. Additional information regarding filing status can be found in Publication 501, Exemptions, Standard Deductions, and Filing Information, Publication 519, U.S. Tax Guide for Aliens, and Publication 555, Community Property.

  6. Taxpayers whose filing status is married filing separate or deemed to be married filing separate are not entitled to EITC with or without Qualifying Child(ren). See IRM 4.19.13, Liability Determination, General Case Development and Resolution, for Audit Reconsideration procedures.

EITC - Personal Exemptions and Dependents

  1. Requirements for claiming dependents prior to tax year 2005, see Publication 501, Exemptions, Standard Deduction, and Filing Information.

  2. Requirements for claiming dependents for tax year 2005 and subsequent, see below. The tax examiner may consider the use of other supporting documentation not in the list below. Exercise judgment and use internal research when verifying documents sent in by the taxpayer.

  3. The Working Families Tax Relief Act of 2004 amended Section 152, effective for taxable years beginning after December 31, 2004. As amended, Section 152 defines a dependent as a qualifying child (QC) or a qualifying relative (QR). There are five dependency tests that apply to determine whether an individual is a QR. The tests for determining whether an individual is a QC are different. An individual that is a QC of any taxpayer can not be a QR of a taxpayer. The definition of a qualifying child may also be relevant for determining whether a taxpayer may claim HOH filing status, the CTC, CDCC, and the EITC.

  4. The Tax Cuts and Job Act amended Section 151, , effective for Tax Years 2018 through 2025, suspended the deduction for personal exemptions by reducing the amount of the deduction to zero. The rules for claiming the dependent on the tax return for a credit or to support the Head of Household filing status remains the same.
    Overview of the Rules for Claiming a Dependent, (for complete details see Publication 501),Exemptions, Standard Deductions, and Filing Instructions.

    Qualifying Child (QC) Supporting Documentation
    Relationship Son or daughter (including an adopted child)
    grandchild or great grandchild, stepson, stepdaughter, step-grandchild or step-great grandchild,
    child pending adoption,
    brother, sister, stepbrother or stepsister or a descendant of any of them (such as a niece or nephew),
    eligible foster child (placed with you by an authorized placement agency) IRC 152(c)(2)
    • Birth certificates or other official documents of birth that shows the relationship to the dependent claimed.

      For Example: If the dependent the taxpayer is claiming is the child of the taxpayer's sibling, which is his niece or nephew that lived with them, the taxpayer would need to provide:

      1. A copy of taxpayer’s birth certificate,

      2. A copy of the birth certificate of the taxpayer's sister or brother that is the parent of the child, and

      3. A copy of the birth certificate of the child claimed.

      Note:

      All three birth certificates would be required to show the relationship linkage.

    • Marriage certificates that verify your relationship to the child

    • Letter from an authorized adoption agency

    • Letter from the authorized placement agency or applicable court document



    Military Personnel Acceptable proof of status
    Defense Enrollment Eligibility Reporting System (DEERS), which provides a list of authorized dependents whose relationship, has been verified. Leave and Earnings Statement (LES), which verifies if the taxpayer is paying a voluntary allotment for Basic Housing Allotment (BHA) payable to the dependents or custodial parent, or if the taxpayer is having child support payments garnished.

    Note:

    An individual legally adopted by the taxpayer or an individual who is lawfully placed with the taxpayer for legal adoption is treated as a child of the taxpayer by blood. An eligible foster child is an individual who is placed with the taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. The terms "brother" and "sister" also include siblings who have only one parent in common, for example, the same mother, but have different fathers.

    Caution:

    The Government of Puerto Rico enacted a new law (Law 191 of 2009 as Amended). Effective October 31, 2010 any Puerto Rican birth certificate issued prior to July 1, 2010 is no longer valid. If a taxpayer submits a birth certificate that was issued by the Puerto Rican government prior to July 1, 2010, the birth certificate should not be accepted. The taxpayer should be informed of the new law and directed to contact the Puerto Rico Vital Statistics Record Office to request a new birth certificate.

    Residency Relatives and members of the household for more than half of the year IRC152(c)(1)(B)

    Temporary absences count as time lived together;

    Exceptions apply for children of divorced or separated parents IRC152(e)

    Birth or death during the year count for more than one-half or the entire year if QC lived with taxpayer the entire time alive IRC 152(f)(6)(B)(ii).
    • Photocopies of school , medical, childcare provider (provider can't be a relative) or social service records that shows the name of child's parent or guardian, child's address and the dates that they lived with taxpayer.

      Note:

      The taxpayer may provide other documentation to show residency. The majority of report cards do not have all the required information for residency but some report cards do have the requested information and should be accepted.

    • A letter on official letterhead from a school, a health care provider, a social service agency, placement agency official, employer, Indian tribal official, landlord or property manager, or a place of worship that shows the name of child's parent or guardian, child's address and the dates that they lived with taxpayer

      Note:

      If the lease is not available on official letterhead, the taxpayer may submit a copy of his/her existing lease for consideration, along with additional supporting documentation.

    Note:

    If the taxpayer’s address is a post office box, request a photocopy of the stamped/accepted Postal Form 1093, P.O. Box Application for Post Office Box Service, to verify the taxpayer’s street address.

    Note:

    If internal research validates information listed on the documents provided by the taxpayer to show residency, use professional judgment to allow. Ex: A letter from a landlord, not on official letterhead, verifying the dependent’s residency and ACCURINT verifies the landlord is the owner of the property, may be accepted.

    Age Under age 19 at the end of the tax year and younger than taxpayer (or taxpayer's spouse, if filing jointly)
    or

    Under age 24 at the end of the tax year, a student, and younger than taxpayer (or taxpayer's spouse, if filing jointly)
    • The taxpayer should send photocopies of official school records showing the child was a full-time student for at least five months of the tax year. The school records should show the dates of attendance. The months of attendance do not have to be consecutive.

      Any age if permanently AND totally disabled at any time during the tax year IRC 152(c)(3)
    • The taxpayer should send a letter from the child's doctor, other health care provider, or any social service program or agency verifying the child is permanently and totally disabled.

    • Use IDRS Command Code INOLE to verify QC age.

    Note:

    See definition of "student" in IRC 152(f)(2) and definition of "permanently and totally disabled" in Section IRC 22(e)(3)I of the Code.

    Support QC cannot provide more than 1/2 of their own support IRC 152(c)(1)(D) The taxpayer may provide receipts for food, clothing, rent, medical, dental, schooling, recreation, and personal items. If two people are claiming the same dependent, receipts may be needed from both.
    Citizenship Citizen/national/ resident alien of U.S., resident of Canada or Mexico / adopted child. Exception RC 152(b)(3)

    Note:

    Refer to Publication 519, U.S. Tax Guide for Aliens

    Birth certificate, driver's license, school records, "green card" or other DHS documents may be provided.
    • A U.S. resident alien who does not have a green card must either show (1) the substantial presence test was met, or (2) he or she resided in Canada or Mexico.

    • Use IDRS Command Code DDBKD to research QC citizenship status.

    Married Child Joint Return IRC152(b)(2) - A qualifying relative shall not include an individual who has made a joint return with the individual's spouse for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins. Verify no other return filed with dependent's SSN. If joint return filed, verify that the return was filed only as a claim for refund and no tax liability would exist for either spouse on separate returns.
    Tie- Breaker Rule IRC 152(c)(4) defines the Tiebreaker Rules. Refer to IRM 4.19.14.6.1, EITC Qualifying Child (QC)for additional information. The Working Families Tax Relief Act of 2004 (WFTRA) established a uniform definition of a QC for determining whether a taxpayer qualifies for HOH filing status, CDCC, CTC/ACTC, EITC, for the dependent claimed. Notice 2006-86 clarifies that, unless the special rule in IRC 152(e) for divorced or separated parents applies, the tie-breaking rule in IRC 152(c)(4) applies to these provisions as a group, rather than on a section-by-section basis.
    Requirements and Special Rules The taxpayer cannot be dependent of a taxpayer IRC 152(b)(1) If the taxpayer is claimed as a dependent on another taxpayer's return, and the taxpayer says he/she should not be claimed on the other taxpayer's return but is self-supporting; the taxpayer needs to provide documentation showing self-support. Some examples are:
    utility bills,
    rent or mortgage
    receipts, property tax bills.

    Note:

    These items can be used as proof of self-support and residence. (if housing is an item of support, then its value is the rent paid or the fair rental value of the housing)

    Do Master File research on all TIN’s listed on DDBOL
    • Do Master File research using DDBKD to verify relationship. Accept Birth Certificate showing relationship. DDBKD also indicates if the taxpayer was the QC of someone else.

    • Do INOLE research for age verification and TIN issuance date. See IRM 4.19.13.4, Researching Cases.

    • Request proof of separate residence from the person claiming the qualifying child, such as rent receipts, school records, property tax bill, or utility receipts, if research indicates taxpayer is married.

    Qualifying Relative (QR) Supporting Documentation
    Relationship Per IRC 152 (d) (2) relationship is defined as a child (son, daughter, adopted child, stepchild, eligible foster child) or descendants. Sibling of son or daughter or step-sibling or step-parent.

    Parent or ancestor of sibling In-laws (mother, father, brother, sister, son, daughter).

    Non-relative household member who was not a spouse at any time during the year if the relationship is not in violation of local law.
    • Birth Certificate(s) showing relationship, adoption papers, court documents, school records.

    • IDRS Research.

    • If taxpayer claims a person that does not meet the relationship as defined in IRC 152(d)(2) as a qualifying relative, he/she should send proof the person has lived in their home for the entire 12 months of the year. To show both of them living together at the same address or addresses for the entire tax year the taxpayer should send either:

      1. School, medical, day-care, or social service records.

      2. A letter on the official letterhead from a school, medical provider, social service agency, or place of worship that shows names, common address and dates. (If taxpayer sends a letter from a relative who provides day-care, taxpayer MUST send at least one additional letter.)

    Note:

    Any of the relationships listed above that were established by marriage are not ended by death or divorce. A person related to a taxpayer in any of the ways listed above does not have to live with the taxpayer to meet dependency residency test.

    Note:

    The Government of Puerto Rico enacted a new law (Law 191 of 2009 as Amended). Effective October 31, 2010, any Puerto Rican birth certificate issued prior to July 1, 2010, is no longer valid. If a taxpayer submits a birth certificate that was issued by the Puerto Rican government prior to July 1, 2010, the birth certificate should not be accepted. The taxpayer should be informed of the new law and directed to contact the Puerto Rico Vital Statistics Record Office to request a new birth certificate.

    Residency Residency requirements applicable only to household members that are not related. Non-relatives must verify residency for entire year per IRC 152(d)(2)(H)
    Temporary absences count as time lived together; birth or death during the year count as entire year if QR lived with taxpayer the entire time alive IRC 152(f)(6)(C)(ii).
    Exceptions apply for children of divorced or separated parents IRC 152(e)
     
    Age N/A  
    Support Taxpayer must provide over one half of QR support per IRC 152(d)(1)(C).
    Multiple support applies.
    An exception applies for children of divorced or separated parents per IRC 152(e)
    Kidnapped child exception applies IRC 152(f)(6)( C)
    Taxpayer should send copies of the following documents as proof he/she provided more than half of their dependent’s total support:
    • A statement of account from a child support agency

    • A statement from any government agency verifying the amount and type of benefits the taxpayer and or the taxpayer's dependent received for the year

    • Rental agreements or a statement showing the fair rental value of taxpayer’s residence (proof of lodging cost).

    • Utility and repair bills (proof of household expenses) with canceled checks or receipts.

    • Day-care, school, medical records or bills (proof of child’s support) with canceled checks or receipts.

    • Clothing bills (proof of child’s support) with canceled checks or receipts.

    Citizenship Same as Dependent QC IRM 4.19.14.6.5, Personal Exemptions and Dependents. Same as Dependent QC IRM 4.19.14.6.5.
    Married Child Joint Return Per IRC 152(b)(2)
    A qualifying child shall not include an individual who is married as of the close of the taxpayer's taxable year, unless the qualifying child (e.g. taxpayer) is only filing a claim for refund return only and no tax liability would exist for either spouse on separate returns.
    Same as Dependent QC, same as IRM 4.19.14.6.5.
    Tie- Breaker Rule Does not apply  
    Requirements and Special Rules QR Cannot be qualifying child of another Taxpayer, IRC 152(d)(1)(D) If the QR qualifies as a Qualifying child for another taxpayer, i.e., meets the age, relationship and residency tests, the child MAY NOT be claimed as a qualifying relative by any taxpayer. However, an individual is not a QC of "any other taxpayer" if the individual's parent (or other person with respect to whom the individual is defined as a QC) is not required to file an income tax return and (i) does not file an income tax return, or (ii) files an income tax return to only obtain a refund of withheld taxes
      QR gross income cannot exceed exemption amount excluding qualified income for permanently disabled QR IRC 152(d)(1)(B),IRC 152(d)(4) Taxpayer cannot be a dependent of another Taxpayer IRC 152(b)(1) Verify that there is no return filed showing income for the dependent. Review CC IRPTR to verify income and/or type reported for dependent.
  5. Additional information regarding Personal Exemptions and Dependents can be found in Publications 501 and 17, Your Federal Income Tax (For Individuals).

  6. When exemptions are disallowed, consider all related credits.

  7. Special rule for children of divorced or separated parents:
    The custodial parent is the parent having custody for the greater part of the calendar year; the noncustodial parent is the parent who is not the custodial parent.

  8. This rule also applies to parents who never married. A child will be treated as the QC of the noncustodial parent if all of the following applies:
    The child received over half of his or her support for the calendar year from the parents. In the case of the remarriage of a parent, support received from the parent's spouse shall be treated as received from the parent.
    The child is in the custody of one or both parents for more than half of the calendar year.
    The custodial parent signs a written declaration (Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or similar statement) that he or she will not claim the child as a dependent for the taxable year in question or, for a number of years which includes the taxable year in question.

  9. The following tests must also be met:

    Citizen, National, or Resident Test: The taxpayer’s dependent must be a U.S. citizen, national, or U.S. resident alien, or a resident of Canada or Mexico. Verifying Information: Birth certificate, driver’s license, school records, library card, green card, or INS documents
    Support Test: Additionally, if the support of a child is not determined under a multiple support agreement and if all the following are met:
    1. The parents are divorced or legally separated under a decree of divorce or separate maintenance, or separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year.

    2. One or both parents provide more than half of the child’s total support for the calendar year.

    3. One or both parents have custody of the child for more than half of the calendar year.

    4. The custodial parent releases a claim to an exemption for the child by a written declaration, as prescribed by the regulations, and the noncustodial parent attaches the release to his or her tax return.

    Verifying Information: Divorce or separation agreement. Form 2120, Multiple Support Declaration, if provided by taxpayer.

    The U.S. Tax Court issued a decision on the use of Form 8332, Entry Classification Election, in King V Commissioner (121 TC 12) September 26, 2003. Under the ruling, the use of Form 8332 may also apply to never married parents of minor children, if they have lived apart at all times during the last 6 months of the calendar year. The Form 8332 was revised to delete all references to the requirement that the custodial and noncustodial parents must be or have been married to each other before the special support tests apply.

    For Examination, if a signed Form 8332 is submitted during the audit, the noncustodial parent is treated as providing more than half the support for the year, and is entitled to the exemption if the other 4 dependency tests are met (relationship/member of Household, citizen, national, or resident, gross income; joint return) provided that one or both parents furnish over half of the child’s total support for the year. This applies whether or not the parents of the child were ever married. This also means, that under IRC 152(e)(1), the never married custodial parent living apart from the child's other parent is entitled to a presumption of greater than 50 percent of support on the same basis as the custodial parents who are divorced or legally separated under a written agreement.

    Please refer to IRM 4.19.15.11.2,Processing Taxpayer Replies, for additional guidance when evaluating Form 8332.
    then  
    The noncustodial parent may claim an exemption for the child. See above.

    Note:

    For TY 2018 - 2025, the exemption amount allowed for individuals has been reduced to zero under Section 11041 of the Tax Cuts and Jobs Act.


    Additionally

    A married filing joint status is allowed for taxpayer and his/her spouse if:
    Neither the taxpayer nor the taxpayer's spouse is a dependent of another taxpayer. See Exception in the Joint Return Test of Personal Exemptions and Dependents, Publication 17, Your Federal Income Tax (For individuals).
    Accepted proof of status:
    If the taxpayer is claimed as a dependent on another taxpayer's return, and the taxpayer says he/she should not be claimed on the other taxpayer’s return but is self-supporting, taxpayer needs to provide documentation showing self-support. Some examples are: utility bills, rent or mortgage receipts, property tax bills. These items can be used as proof of self-support and residence.
    or  
    If married filing joint, Marriage certificate
    or  
    If taxpayer is filing separate return, the taxpayer may claim self (if above test is met)

    Note:

    For TY 2018 - 2025, the exemption amount allowed for individuals has been reduced to zero based on Section 11041 of the Tax Cuts and Jobs Act of 2018.

    or  
    If the taxpayer’s spouse died during the year and the taxpayer did not remarry by end of year, taxpayer may use married filing joint filing status. Death certificate and, if remarried, marriage certificate showing new marriage after last day of tax year.

Closing Actions

  1. See IRM 4.19.13.28, Campus Exam Closing Actions.

Problem Correction Reports

  1. The following reports allow the sites to identify pre-refund cases where the refund was held with a TC 810 and may have been processed incorrectly. Examiners will follow these procedures for correct resolution of the cases.

  2. The reports are to be worked within fourteen days of posting to Control "D" to ensure that taxpayer refunds are issued timely. The reports are important because they detect taxpayer refunds held for excessive periods or detect EITC Recertification indicators not released timely.

  3. The reports should be annotated to reflect the status of the cases, and necessary actions taken as outlined below. The reports follow the monthly AIMS reporting cycle, but do not generate a report in January. The annotated reports should be retained for six months.

  4. The site required to send a summary confirmation via email detailing the results or trends for each report to their respective W&I Headquarter (HQ) Analyst.

    • For EITC reports #2, #3 and #5 send results to the EITC Recertification Program Analyst.

  5. In addition, HQ may randomly ask the sites to provide copies of the annotated reports.

  6. The following explains procedures which should be followed for working the EITC Reports numbers 1, 2, 3, 4 and 5.

    Report If Account has Then
    REPORT # 1 Removed as of Cycle 2010 - 08    
    REPORT # 2 TC 810 TC 421 and No TC 811 Credit balance and TC 300 for 0, DC 02 Release refund with TC 811
      Credit balance and DC other than 02 Determine if TC 810 should be released. (Case file may need to be pulled and reopened if closed in error).
    REPORT # 3 TC 810, TC 811, TC 420, and No TC 421 Been reviewed and it is determined that account had a refund released in error (Pull case file if necessary) Continue the audit.
      Been reviewed and it is determined that the account has been properly resolved (Pull case file if necessary) Input TC 421.
    REPORT # 4 Removed as of Cycle 2012    
    REPORT # 5 TC 150 and TC 810-3 (posting the same cycle as the TC 150) TC 300 - DC 02 A recertification indicator present on ENMOD, and a determination can be made to release the recertification indicator Input TC 971 action code 056, Input TC 811.
      A recertification indicator present on ENMOD, and a determination has been made that an incorrect disposal code was used. Do not release recertification indicator.  

    Note:

    Annotate the 810 listing with action taken. Retain listing for six (6) months.

    Note:

    See IRM 4.19.13.29, Problem Correction Reports, for FTHBC Report # 6 procedures.

Recertification

  1. For years after 1996, taxpayers whose EITC was denied or reduced under deficiency procedures , must attach Form 8862, Information to Claim Earned Income Credits After Disallowances,to the next tax return to claim EITC.

  2. Additionally for any years after 2015, taxpayers whose CTC, ACTC, or AOTC was denied or reduced under deficiency procedures , must attach Form 8862 to the next tax return to claim those credits. Because the ODC is part of the CTC, taxpayers whose ODC is denied or reduced under deficiency procedures must attach Form 8862 to claim the CTC, ACTC, or ODC in a future year. And, taxpayers whose CTC/ACTC is denied or reduced under deficiency procedures must attach Form 8862 to claim the CTC, ACTC, or ODC in a future year

  3. The recertification indicator 1 will be set at the National Accounts Profile (NAP) when:

    • EITC is denied and a TC 30X and TC 765 posts to the account

    • CTC/ACTC is denied and a TC 30X and Reason Code 181 posts to the account

      Note:

      The disallowance of the amount of CTC plus ACTC during the audit must be less than the combined amount of CTC plus ACTC per return. of CTC plus ACTC per return. For example, an increase to CTC of $1,000 with a decrease to ACTC of $1,000 will not set the indicator.

    • AOTC is denied and a TC 30X and Reason Code 178 posts to the account.

  4. EITC cases that have a recertification indicator 1, will be selected as in the following project codes:

    • PC 0694 - Full scope EITC

    • PC 0257 - Schedule C and full scope EITC

    • PC 0027 - Full scope EITC with 2-Year Ban proposed

    • PC 0028 - Schedule C and full scope EITC with 2-Year Ban proposed

    • PC 0903 - Pick-up of Recertification case (Prior Project Code 0694)

    • See IRM 4.19.13.3.1 (3) b,Auditing Standard 1, for more information on audit scope expansion

  5. If the EITC, combined CTC/ACTC, or AOTC is disallowed or reduced a CP 79 will be sent to the taxpayer informing them that the credits were disallowed and that they will be required to file Form 8862 to recertify the next time they claim the credit. A recertification indicator will remain on the account until the taxpayer recertifies.

    Note:

    If the taxpayer files the subsequent year’s return claiming EITC with no qualifying child(ren), the taxpayer is not required to attach Form 8862 to recertify. The EITC will be allowed and the Recertification Indicator IS NOT REMOVED. The taxpayer will be required to recertify for the next year for which EITC with a qualifying child(ren) is claimed.

  6. Credits claimed by taxpayers who are required to recertify but do not attach Form 8862 to their next return will be denied through Math Error procedures during the processing of the tax return under IRC 6213(g)(2)(K), (P) and (Q). .

  7. Master File programming automatically removes the recertification indicator (RI) 1 or 9 when a case is closed and the taxpayer receives the full EITC, CTC/ACTC, or AOTC claimed under the conditions detailed below
    EITC:

    1. TC 300 for zero amount containing Disposal Code 02 if the module contains TC 764 or TC 768, or

    2. TC 421 with a Disposal Code 20 if the module contains a TC 764 or TC 768, or

    3. Current posted TC 764 with an amount equal or exceeds a prior TC 765 with doc. code 47.

      Note:

      All other conditions or Disposal Codes will still require the manual removal of the RI. This is done by inputting TC 971 AC 056.




    CTC/ACTC

    1. TC 300 for $0 amount with a Disposal Code of 02 and the reason code 185 is input, or

    2. TC 421 with a Disposal Code of 20 and the Tax Module contains a TC 766 CRN 336 or

    3. Current posted TC 766 CRN 336 with an amount equal or greater to the amount of a prior posted TC 767 Doc code 47 with CRN 336.

      Note:

      All other conditions or Disposal Codes will still require the manual removal of the RI. This is done by inputting TC 971 AC 161.




    AOTC

    1. TC300 for $0 amount of Disposal Code 02 and Reason Code 184 is input, or

    2. TC 421 with a Disposal Code of 20 and the Tax Module contains a TC 766 CRN 260, or

    3. Current posted TC 766 CRN 260 with an amount equal or greater to the amount of a prior posted TC 767 Doc code 47 with CRN 260.

      Note:

      All other conditions or Disposal Codes will still require the manual removal of the RI. This is done by inputting TC 971 AC 160.

  8. When working a taxpayer’s response on a Recertification case, research the prior audit information in CEAS (Correspondence Examination Automation Support) to determine if the prior audit adjustments are relevant to the credits under current examination. The prior year audit must be researched and documented in the workpapers per IRM 4.19.13.6,Workpapers for All Cases listing the IDRS command used to perform the research is not sufficient. Relevant information includes all prior phone contacts and written correspondence as well as the facts and circumstances that are similar or different in making a determination in the current year.

    • When a case is no changed, use the information from the prior year research to document the workpapers to explain why the credit disallowed in the prior year examination is allowable in the current examination.

    • If the research of the prior year audit shows that the taxpayer was clearly informed of the rules and regulations and they recklessly or intentionally disregarded the rules and regulations for claiming the credits in the current year, then, the 2-year ban should be considered based on the facts and circumstances of both the prior year and current audit. The workpapers must clearly outline the reasoning for assertion and non-assertion of the 2-year ban. See IRM 4.19.14.7.1, 2/10 Year Ban - Correspondence Guidelines for Examination Technicians (CET),for assertion of the 2-year ban.

  9. When a Recertification indicator of 1 is removed by input of TC 971 AC 056 (EITC), AC 160 (AOTC), AC 161 (CTC/ACTC), then Master File will send a CP 74 to the taxpayer. CP 74 informs the taxpayer they have re-certified, and will receive a refund within 6 weeks, provided the taxpayer owes no other taxes or debts.

  10. The entity module (IMFOLE or ENMOD) will reflect the Recertification Indicator (RI) 1 or 9, the 2 (RI 2) or 10 (RI 4) year ban indicator, the tax period the ban was set, and the eligible tax period when the taxpayer can claim the credits. The following table explains the RI and the action required.

    Recertification Indicators (RI)
    If the RI is and Then
    Blank or 00   Recertification is not required.
    1   Recertification is required.
    9   Recertification is required.
    2 The tax year is < the -EL-TXPD field and > the -TXPD field. Taxpayer is under a 2 year ban and not eligible not eligible for the applicable credit(s).
    2 The tax year is > or = to the -EL-TXPD field. Recertification is required.
    3 The tax year is < the -EL-TXPD field. The taxpayer recertified after the 2 or 10 year ban expired. However, the 2 or 10 year ban is still in place for the banned years.
    3 The tax year is > the -EL-TXPD field. Recertification is not required.
    4 The tax year is < the -EL-TXPD field and > the -TXPD field. Taxpayer is under a 10 year ban and not entitled to the credit.
    4 The tax year is > or = to the EITC-EL-TXPD field. Recertification is required.

2/10 Year Ban - Correspondence Guidelines for Examination Technicians (CET)

  1. 2-year ban applies when it is determined that a taxpayer recklessly or intentionally disregarded the EITC, CTC/ACTC or AOTC rules and regulations when claiming the credit(s). The 2-year ban should be considered by the technician on every EITC, CTC/ACTC or AOTC case. A variety of facts must be considered by the CET in determining whether the 2-Year Ban should be imposed. A taxpayer’s failure to respond adequately or not respond at all does not in itself indicate that the taxpayer recklessly or intentionally disregarded the rules and regulations.

  2. Upon receipt of correspondence the Correspondence Exam Technician's (CET) decision to assert the 2-year ban or not for each credit needs to be documented and must show the reason for the determination on Form 4700, Examination Workpapers. The CET must do the following:

    • Review the documentation submitted by the taxpayer

    • Determine whether the 2-year ban should be asserted based on applicable tax law and
      1. the taxpayer’s documentation
      2. taxpayer contact
      3. IDRS research
      4. Prior year CEAS workpapers

    • Clearly document workpapers as indicated in 4.19.13.6, Workpapers for All Cases, including the decision and reason to impose or not impose the 2- year ban

    • Get managerial approval prior to asserting the 2-year ban

    Note:

    Do not use standard statements such as 2-year ban is applicable because taxpayer showed intentional disregard of the rules and regulations for EIC/ACTC/AOTC. Proper workpaper documentation should clearly outline the audit steps taken and fully explains the decision to assert or not assert the 2-year ban.

  3. Managerial approval is required for all 2/10 year ban cases. See below for the assertion of the 10-year ban. The manager must review the entire case file and ensure the following:

    • the workpapers are documented according to 4.19.13.6 including the decision and reason to impose or not impose the 2-year ban

    • the decision to assert the 2-year ban is warranted.

    The manager must input a CEAS non-action note to approve the assertion on the 2-year ban.

  4. Once approval is received from the manager, the CET will do the following:

    • Write an 886-A explanation to the taxpayer clearly explaining the reason for the assertion of the 2-year ban

    • Take the appropriate steps in RGS to assert the 2-year ban

    • Complete Form 5344 by inputting:
      a. For EITC, TC 300, 765, 240 (reference code 680) and either the priority code 6 or 7.
      b. For CTC/ACTC, TC300, Reason code 182.
      c .The AOTC, TC300, Reason code 179.

      Validate and save Form 5344 to complete the assertion of the 2-Year Ban. .

    .

  5. When the case closes Master File will mail CP 79A to the taxpayer explaining that the 2-year ban was applied and what they need to do in the future.

  6. Recertification indicators to identify the 2/10 year bans are found on IDRS CC ENMOD and IMFOLE.
     

    ENMOD will carry:

    1. EITC/CTC/ACTC/AOTC- RECERT-IND-“2” (2-year ban) or “4” (10 year ban)

    2. EITC/CTC/ACTC/AOTC- TXPD - tax year the ban was set

    3. EITC/CTC/ACTC/AOTC- EL-TXPD - the tax year the taxpayer’s ban expires and the taxpayer is subject to Recertification.


     

    IMFOLE will carry:

    1. EITC/CTC/ACTC/AOTC -“2” (2-year ban) or “4” (10 year ban

    2. EITC/CTC/ACTC/AOTC - RECRT TXPD - tax year the ban was set

    3. EITC/CTC/ACTC/AOTC - ELG TXPD - the tax year the taxpayer’s ban expires and the taxpayer is subject to Recertification.

  7. The following table provides a starting point to help determine if the 2 year ban is appropriate. All decision must be made on the facts and circumstances of the case. This table is not all-inclusive

    If and Then
    This is the first year EITC, CTC/ACTC, or AOTC was audited The TP has responded, you must speak with the taxpayer before you recommend assertion of the ban. Based on the information received and your conversation with the taxpayer, the taxpayer shows they had prior knowledge of the rules and regulations for claiming one or more of the credits, but chose to take it anyway. Assert the ban on each of the credits to which it applies and include the specific details that showed the taxpayer had prior knowledge of the rules and regulations.
    This is not the first year the taxpayer was audited for EIC, CTC/ACTC, or AOTC and the taxpayer was disallowed EIC, CTC/ACTC, or AOTC in a prior audit The prior year’s Statutory notice was not undeliverable.

    - and -

    Inadequate documentation is received from the taxpayer and the case results in the one or more of the credits being disallowed again
    Based on prior year research, including workpapers and CEAS notes; the documents received, or any telephone calls consider applying the two-year ban on each of the credits to which it applies, document the workpapers with the specific details that led to the decision to recommend the ban.
    Insufficient documentation is received for the current audit and the case results in the EITC, CTC/ACTC, or AOTC being disallowed again The TP indicates they clearly feel they are eligible, and is attempting to prove eligibility and it is clear they do not understand Consider the taxpayer’s lack of understanding before considering asserting the ban because inadequate documentation received from the taxpayer in itself does not show intentional disregard of the rules.
  8. 10 year ban - applies when it determined that a taxpayer fraudulently claimed EITC, or for tax years after 2015. See IRM 25.1, Fraud Handbook, and IRM 4.19.10.4,Fraud Referrals, for procedures.

  9. The 10 year ban is appropriate when the technician identifies a return which has indicators of fraud, the technician should discuss the case with their Manager/Team Leader. If the Manager/Team Leader concurs, the tax examiner will initiate a Form 13549, Campus Fraud Lead Sheet, (signed by the manager) for each tax year and refer the case to the Functional Fraud Coordinator (FFC) or Campus Fraud Coordinator/Exam Fraud Coordinator (EFC) for further evaluation. Some examples of fraud indicators may include:

    • Apparent false statements from the taxpayer

    • Apparent altered or fictitious documents

  10. If the FFC or CFC/EFC determines that there is no fraud potential, the FFC or CFC/EFC will return the case through the manager annotating the reason for rejection within 21 days. However, the manager and tax examiner should consider asserting the 2-year ban if it applies on the returned case.

  11. W&I fraud program is centralized in Austin and SB/SE Fraud program is worked in all five SB/SE campuses.

  12. The 10 year ban is set when the following posts to Masterfile:

    1. For EITC TC 300, 765, 320 (reference code 680) and either the priority code 6 or 7.

    2. For CTC/ACTC, TC300, Reason code 183.

    3. For AOTC, TC300, Reason code 180.

  13. When the case closes Master File will mail a CP 79B to the taxpayer explaining to the taxpayer that the 10 year ban was applied and what they need to do in the future.

Project Codes 0697 and 0698 - EITC Claimed Under the 2/10 Year Ban
  1. Starting with tax year 2016, if the taxpayers claim EIT C, CTC/ACTC, or AOTC while under a 2-year ban or 10-year ban for that credit, they will receive a math error notice and the credit will be disallowed.

  2. Project Code 0697 - If the taxpayer claims EITC for tax years prior to 2016 while under the 2-year ban, the return will automatically be established on AIMS through the DDb in Project Code 0697. CP 75C will be the initial contact letter informing the taxpayer their refund was delayed. RGS will systemically generate a Letter 3219, Statutory Notice of Deficiency. At this point, EITC eligibility is not the issue of this examination and the taxpayer should not be asked to send in qualifying documentation. We are simply notifying the taxpayer that the EITC is disallowed because there is a 2-year ban on the current tax period.

  3. Project Code 0698 - If the taxpayer claims EITC for tax years prior to 2016 while under the 10 year ban, the return will automatically be established on AIMS through the DDb using PC 0698. CP 75C will be the initial contact letter informing the taxpayer their refund was delayed. RGS will systemically generate a Letter 3219, Statutory Notice of Deficiency. At this point, EITC eligibility is not the issue of this examination and the taxpayer should not be asked to send in qualifying documentation. We are simply notifying the taxpayer that the EITC is disallowed because there is a 10 year ban on the current tax period.

  4. For tax years prior to 2016, when taxpayers under the 2/10 year ban call or write in response to receiving a Letter 3219, Statutory Notice of Deficiency, CETs will:

    • Inform the taxpayer they are under the 2 or 10 year ban and that they can not claim EITC until the ban expires.

    • Refer them to Publication 596, Earned Income Credit, Chapter 5, which explains, “The date on which EITC was denied and the date on which you file your tax return affects the years you are prohibited from claiming EITC.”

    Note:

    The date the TC 300, TC 765, TC 240 (2-year ban trigger) or TC 320 (10 year ban trigger) posts to master file is the date the ban was imposed. The ban will apply to any tax return due after this date.

     

    Example:

    Taxpayer claimed EITC on 2014 tax return, which was filed in March 2015. In October 2015, the IRS denied the claim and determined that there was reckless or intentional disregard of the EITC rules. The taxpayer cannot claim EITC for tax year 2015 or 2016. If they wish to claim the EITC for the next year, 2017; the taxpayer must complete and file Form 8862,Information To Claim Certain Refundable Credits After Disallowance.

     

    Example:

    The facts are the same as in the above example, except that the IRS did not disallow the 2014 EITC until after the 2015 tax return was filed. The taxpayer would not be able to claim EITC for tax year 2016 and 2017. They would be required to recertify in tax year 2018 if claiming EITC with qualifying child(ren).

  5. If the taxpayer believes the 2-year ban was incorrectly applied, they must first request audit reconsideration for the year the ban was asserted. Advise the taxpayer that they must provide documentation to show that they did not recklessly or intentionally disregard the EITC rules for the year the ban was imposed and not on the current tax period

    Example:

    The facts are the same as in the first example, except the taxpayer is under a 10 year ban. Because the taxpayer is banned from claiming the EITC for 2015 (or any year within the 10 years that are banned), they must first request audit reconsideration for 2014 (the year the ban was asserted) and provide supporting documentation for tax year 2014, verifying that the Ban was incorrectly applied.

     

    Note:

    For tax years prior to 2016: If the time to petition the Tax Court has not expired, remind the taxpayer of the following: “Your time to petition the United States Tax Court will end on _______. (Insert or tell taxpayer last date to petition.) However you may continue to work with us to resolve your tax matter, but we cannot extend your time to petition the United States Tax Court beyond _________ . (Insert or tell taxpayer last date to petition).” If the time to petition the Tax Court has expired, inform the taxpayer of the following: “Your time to petition the United States Tax Court expired on ________________. (Insert or tell taxpayer last date to petition.).” However, if new information is submitted, we will re-evaluate our determination accordingly.

  6. If the taxpayer believes the 10-year ban was incorrectly applied, they must first request audit reconsideration for the year the ban was asserted. Advise the taxpayer that they must provide documentation to show that they did not fraudulently claim the credit for the year the ban was imposed and not on the current tax period.

Telephone Guidelines for Exam Employees
  1. For tax years prior to 2016 when a Taxpayer under the 2-year ban calls in response to receiving a Statutory Notice of Deficiency, Letter 3219, CET will:

    • Inform the taxpayer they are under the 2-year ban and they can not claim EITC until the Ban expires. The CET can inform the taxpayer that Publication 596, chapter 5 explains how the Ban expires if the taxpayer needs additional information regarding the 2 year ban.

    • Research IDRS command codes per IRM 4.19.14.7.1 to determine what year the 2-year ban was asserted and when the ban expires. Inform the taxpayer of the years under the ban and the year when they are eligible to recertify. Explain to the taxpayer that they will need to attach Form 8862 to their return to recertify the first year they file for EITC for qualifying children after the ban expires.

    • Inform the taxpayer that they do not need to submit any documentation for the year under the ban. If the taxpayer feels they should not have been banned, the taxpayer needs to resolve the year that the ban was asserted.

      Note:

      For tax years prior to 2016: If the time to petition the Tax Court has not expired, remind the taxpayer of the following: “Your time to petition the United States Tax Court will end on _______. (Insert or tell taxpayer last date to petition.) However you may continue to work with us to resolve your tax matter, but we cannot extend your time to petition the United States Tax Court beyond _________. (Insert or tell taxpayer last date to petition.)”
      If the time to petition the Tax Court has expired, inform the taxpayer of the following: “Your time to petition the United States Tax Court expired on___________. (Insert or tell taxpayer last date to petition.).”

Petitions to Tax Court
  1. For tax years prior to 2016: If the taxpayer petitions the tax court, in addition to the petitioned year, Counsel requires case file from the tax year the ban was first applied to properly defend the government’s position. This will require the campus to request the closed administrative cases from files.

  2. The petitioned year case file must include the tax year the ban was applied. In addition to the RGS case file, work papers and all correspondence received for the ban tax period.

Audit Reconsideration 2/10 Year Ban
  1. See IRM 4.13.3.17, Audit Reconsiderations 2/10 Year Ban, more information if a taxpayer requests a reconsideration of a tax year while under a 2 or 10 year ban.

Project Codes 0027 and 0028 – EITC Recertification with a Proposed 2 Year EITC Ban
  1. Recertification cases selected under Project code 0027 and 0028 systemically propose the assertion of the 2-year ban based on specific selection criteria. The initial contact letter includes a paragraph informing the taxpayer that the 2-year ban may be asserted and include the following:

    Project Code 0027
    Letters, Attachments, and Issues
    Project Code 0028
    Letters, Attachments, and Issues
    • CP 75/CP 75A with fill ins: EITC Recertification
      2 year EITC ban

    • Form 886-H-EIC (for appropriate tax year).

    • Form 886-H-DEP (for appropriate tax year)

    • Form 886-H-HOH (for appropriate tax year)

    • Form 886-H-AOC

    • Publication 3498 -A

    • Publication 4134

    • Return envelope

    • CP 75/CP 75A with fill ins: EITC Recertification
      2 year EITC ban
      Schedule C

    • Form 886-H-EIC (for appropriate tax year).

    • Form 886-H-DEP (for appropriate tax year)

    • Form 886-H-HOH (for appropriate tax year)

    • Form 886-H-AOC

    • Form 11652

    • Pub 3498-A

    • Pub 4134

    • Return envelope

  2. The taxpayers will be requested to provide documentation to prove they are entitled to claim the EITC

    • If the taxpayer does not reply, the 2-year ban will systemically post to Master File along with the EITC disallowance.

    • If the taxpayer replies, the documentation received must be evaluated and the procedures per IRM 4.19.14.7.1 must be followed which includes:
      - Making a determination whether the 2-year ban is applicable
      - Getting managerial approval to continue the assertion of the 2-year ban per IRM 20.1.5.1.4, Managerial Approval of Penalties.
      - Providing a detailed explanation to the taxpayer clearly stating the reason for the assertion of the 2-year ban. The standard RGS explanation is not sufficient when correspondence is received.

Dependent Database

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Returns are sent through the DDb as the return is processed. If the return is selected, based on the scoring methodology and the business rules, the refund will be held with a TC 810 at the Masterfile. Most EITC audits will have the CP 75 notice series generated to alert the taxpayer that his/her refund will be held pending an examination. The case will open on AIMS in Employee Group Code 5014. Some EITC audits are initiated through the Filer Bridge and will have Letter 566 issued as the ICL.

  3. Selected cases will be sent to the RGS server to the site based on the case assignment.

    Note:

    All pre-refund cases opened through DDb will have the portion of the refund not in question released upon issuance of the initial contact letter using a systemic TC 811 reversal through RGS/CEAS. When a TC 421 is recognized in an account that has had this unique TC 810, a TC 811 will automatically generate, thus releasing the remaining credit.

  4. DDb will not select cases with any of the following conditions:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Through the use of the Command Code "DDBOL" the tax examiners will be able to access DDb for the Classification Viewer Sheet

    • DDBOL is a command code designed to allow the Tax Examiners access to the Dependent Database rules fired.

    • Tax Examiners will be able to view the rules, any cross-referenced SSN and any other information that is on the DDb.

    • This command code can be used on any EITC program since all returns will be scored (even if not selected) though the DDb.

    • DDBOL must be used to work the DDb cases. The information obtained from this command code will act as the classification sheet.

    • Command Code DDBKD allows access to the DDb using the child’s SSN. It includes Social Security information from the DM 1 data, Federal Case Registry (FCR) data, KIDLINK (indicates who is listed on the child’s Social Security application as the parent(s)), and prior Duplicate TIN information, and names of parents.

  6. If the custodial information on the DDb is incorrect, ask the taxpayer to supply documentation to verify the residency requirement of Earned Income Tax Credit (EITC). If the taxpayer can provide proof of the residency requirement, allow the EITC if the taxpayer meets all other tests for EITC.

  7. Information on each taxpayer is stored on DDb with the current year and the two prior years starting with tax year 2000.

Pre and Post Refund DDb Selections Duplicate TIN (DUPTIN) Program

  1. IRS Information Technology (IT) will select pre and post refund Earned Income Tax Credit (EITC) and Non-EITC DUPTIN cases where a DDb Business Rule has been broken.

  2. Selections will be processed and distributed by Automated Correspondence Exam (ACE) to pre-selected campuses.

  3. Cases selected for each campus will contain taxpayers throughout the country where there are two or more taxpayers are claiming the same qualifying child and/or dependent. The examination is full scope where the issues should include dependent(s), related tax credits, and the Head of Household Filing Status.

  4. The DUPTIN program consists of three categories based on the number of times a qualifying child (QC) TIN is duplicated:

    Program Duplication of TIN Tracking Code Campus Assigned
    Duplicate 2 – 3 times None WI/SBSE
    Multi-Duplicate TIN 4 – 10 times 7669 Kansas City (KCSC)
    Ten-plus Duplicate TIN > 10 times 6450 Andover (ANSC)
    NOTE: Cases with Tracking Code 6450 must be worked and closed by the assigned campus. Do not self-assign these cases.
  5. EITC Duptin post refund cases will open in PC 0652.

  6. EITC Duptin pre-refund cases will open in any pre-refund EITC project code with the tracking code 6509.

  7. Non-EITC cases will open in PC 0097 and PC 0098. See IRM 4.19.15.11, Non-Earned Income Tax Credit Duplicate Taxpayer Identification Number (Non-EITC DUP TIN), for procedures unique to Non-EITC cases.

  8. If a case in PC 0652 is still open in exam, and the taxpayer files a subsequent year return claiming EITC with a QC, the subsequent year return will be picked up and opened in PC 0587 and worked pre-refund.

  9. For all systemically selected post refund EITC cases, the initial contact letter (ICL) is the CP 75A which identifies the exam issues and the documentation needed. CP 75/CP 75A is the ICL for PC 0587. The ICL and the appropriate Forms 886-H are automatically processed and mailed by Centralized Print Support.

  10. The adjustments per the Examination Report include the disallowance of all dependents claimed on the returns and any other tax credits and benefits claimed attributable to the dependency exemption such as Child Tax Credit, Child Care Credit, Education Credit or Filing Status.

Evaluating Replies for DUPTIN
  1. Follow IRM 4.19.13.10, Taxpayer Replies, when evaluating replies from taxpayers.

  2. Follow procedures in IRM 4.19.13.6, Workpapers for All Cases, when documenting the Form 4700. See IRM 4.19.14.8.1.2DUPTIN Related Taxpayers, (6) for additional requirements.

  3. See IRM 4.19.14.8.1.2.1, Evaluating Related Taxpayers’ Replies, regarding why it is crucial to notate details on the Form 4700, Examination Workpapers, of the documentation received, reasons for acceptance or non-acceptance of the documentation, and the decision and the reasons of determination based on applicable tax laws.

  4. Follow IRM 4.19.10.4, Fraud Referrals if fraud is suspected.

DUPTIN Related Taxpayers
  1. A related taxpayer is defined as a taxpayer claiming the same QC(s) for an EITC and/or dependent - credit as in the original case. DDKBD identifies the TIN of each related taxpayer and the tax year in which the duplicate claim was made. There can be more than one related taxpayer in Multi-DUPTIN.

  2. When a determination is made to allow a QC on the original case, review and take the required actions outlined below for the related taxpayer(s) identified during examination.

  3. Research each related taxpayer’s on IDRS for evidence of amended return or adjustment, any ongoing audit, Freeze Codes and other factors that may affect the decision to expand the audit to the related taxpayer.

  4. Review also for the potential tax increase and/or decrease in tax credits if the deductions and/or credits pertaining to the duplicate TINs as claimed on the tax return by the related taxpayer are disallowed.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  6. Audit consideration of the related taxpayer MUST be documented in the workpapers to

    1. Indicate the decision regarding whether to expand examination to the related taxpayer(s),

    2. Provide an explanation for the decision.

  7. Once the decision is reached to open a related taxpayer, it is mandatory that the process to establish the case on AIMS be started immediately, and the ICL on the related taxpayer’s audit must be issued within 5 business days of allowing the dependent on the original return.

    Note:

    This includes cases closed “No Change” as well as cases containing multiple QC with a partial allowance where some QC are allowed but the original audit is not closed due to other dependents continuing to be disallowed.

  8. Related EITC duplicated cases in Project Code 0058 are manually processed by preparing Letter 566-S and the appropriate Form 886-H. The package is issued to taxpayers and the cases are updated to Status 10 on AIMS. The examination is full scope where the issues should include disallowance of all dependents, related tax credits, and the Head of Household Filing Status. For PC 0058, send the appropriate Form 886-H with the ICL 566-S.

  9. For related non-EITC whipsaw cases (PC 0059), refer to IRM 4.19.15.11.1, Initial Contact, (2).

Evaluating Related Taxpayers’ Replies
  1. In addition to evaluating the correspondence received, access CEAS and review the workpapers of the original case for pertinent information that may affect the determination of the related taxpayer’s case.

  2. Follow procedures in IRM 4.19.13.6, Workpapers for All Cases, when documenting the Form 4700.

    Note:

    If the decision is reached to close the related taxpayer’s case as a no change, reasons for determination must include an explanation to show why the case should be allowed even though the original case was closed no change.

Processing of Duplicate TIN When E-filing
  1. Processing will allow an e-filed second return duplicating a TIN for EITC or dependent to post electronically when one of the following three conditions exists

    1. The Federal Case Registry (FCR) data shows the taxpayer who files second to be the custodial parent.

    2. There is a recertification indicator on the account of the taxpayer who filed first, or

    3. The taxpayer who files second has an EITC audit that resulted in a no-change in one of the two prior years.


    However, such returns are still subject to the DUPTIN examination process as described

Schedule C Filters

  1. Initial Criteria

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  2. Filters

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    B
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    A
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Third Party Affidavit for Residency

  1. Beginning with Tax Year 2018, W&I Correspondence Exam will accept Form 14086, Qualifying Children Residency Statement Third Party Affidavit, as an option for project codes (PC) 1031 and (PC) 1032, allowing taxpayers to verify the residency of qualifying children that have been claimed for EIT

  2. The taxpayer has the opportunity to submit Form 14086 in addition or in lieu of the documents listed on Form-H-EIC to verify the residency requirements for each child the taxpayer claims on his/her return for EITC. The taxpayer is not required to use Form 14086.

    Note:

    Form 14086 verifies residency ONLY. All other tests, including relationship, must still be met and documentation submitted

  3. (PC) 1031 is used for post-refund audits. (PC) 1032 is used for pre-refund audits.

  4. The filer bridge will be used to issue the initial contact letter, Letter 566-S, and Form 14086.

  5. All fields on Form 14086 must be completed IN FULL. If Form 14086 is incomplete IT WILL NOT be accepted.

    1. The taxpayer and the third party source must both sign and date the affidavit. If a joint return is filed, both taxpayers must sign Form 14086.

    2. Part I is completed by the taxpayer

    3. Part II must be completed and signed by the person verifying the residency of the child or children. Only authorized sources listed on Form 14086 can verify the residency of the child or children. Form 886-H-EIC has the same sources for residency verification

    4. Authorized sources include the following:

    • Child Care Provider

    • Health Care Provider

    • Social Service or Other Government Official

    • Court or Placement Agency Official

    • Employer

    • Landlord or Property Owner

    • School official

    • Indian Tribal Official

    • Clergy

    Note:

    The authorized person cannot be a relative of the taxpayer or the qualifying child.

  6. Documents must be for the same year under examination.

  7. Possible reasons for rejecting Form 14086 (not all inclusive):

    • Partial time frame

    • not acceptable source

    • illegible

    • missing signature

    • appear to be fraudulent

    • did not include address or used PO Box as address

    • wrong year

    • date not listed on document

  8. Use the Exam Project Code Search tool when answering taxpayer calls regarding (PC) 1031 and (PC) 1032.

Premium Tax Credit (PTC)

  1. DDb identifies potentially non-compliant taxpayers claiming Premium Tax Credit (PTC) for compliance treatments. The programming determines the appropriate treatment for returns identified, either AQC processing, Exam audit or non-treatment. Returns are identified in pre-refund environment to ensure revenue protection. The programming has ACE/Batch integration to provide data on the error conditions to aid with report writing capabilities. Additional functionalities include: storing data on rule breaks for scored and selected returns; developing and retrieving reports through Business Object; and populating data in CC DLITE on the PTC error codes.

  2. Error Codes

    1. PTC error codes will be prioritized depending on the severity of the error. The PTC error code identifies the specific Exam or AQC issue that needs to be evaluated.

      PTC Error Code Explanation
      189 #Error code 189 generates when:
      • APTC or Total PTC is greater than $25,000#

      190 Taxpayer reports APTC repayment on Form 1040 or 1040A, but does not attach Form 8962 - (exchange data indicates coverage with record of APTC received)
      191 Taxpayer claimed the PTC; however, the taxpayer household income is less than 100 percent of the Federal Poverty Level (FPL) - (exchange data indicates coverage with no record of APTC received)
      193
      • Taxpayer reports a greater family size to the Exchange that does not equal the family size reported on the return, or

      • Taxpayer indicates an Alternate Calculation of Marriage (ACM) by providing one or more ACM entries on Form 8962, but:

      1. Does not complete all of the entries, or

      2. The start month is before the stop month

      194 Taxpayer indicates an allocation by providing one or more allocation entries on Form 8962, but:
      1. Does not complete all of the required items, or

      2. Has a start month before the stop month

      195 Taxpayer claims PTC, but no one claimed on the return was enrolled in a QHP through the Exchange.
      196
      • Taxpayer provides annual calculation, but Form 8962 includes entries for ACM or shared policy allocation, or

      • Taxpayer completes annual calculation but Exchange data shows premium and SLCSP are not the same values for all 12 months or the taxpayer has less than 12 months of coverage

      197
      • When Exchange data is available for all months, the taxpayer’s annual premium amount does not equal the computed exchange annual premium amount, or

      • When less than 12 months of Exchange data available, the taxpayer annual premium amount is not within the acceptable range with the exchange annual premium amount

      • For months in which exchange data is available, the taxpayer monthly premium amount does not equal the computed exchange monthly premium amount

      • For any month, the taxpayer monthly premium amount is not within acceptable range (based on November / December business rules) with the exchange monthly premium amount

      198
      • When Exchange data is available for all months, the taxpayer annual premium of SLSCP does not equal the computed exchange annual premium of SLSCP

      • When less than 12 months of Exchange data available, the taxpayer annual premium of SLSCP is not within acceptable range (based on November / December business rules) with the exchange annual premium of SLSCP

      • For months in which exchange data is available, the taxpayer monthly premium of SLSCP does not equal the computed exchange monthly premium of SLSCP

      • For any month, the taxpayer monthly premium of SLSCP is not within acceptable range (based on November / December business rules) with the exchange monthly premium of SLSCP

      199
      • When Exchange data is available for all months, the taxpayer annual APTC received does not equal the computed exchange annual APTC received.

      • When less than 12 months of Exchange data available, the taxpayer annual APTC received is not within acceptable range (based on November / December business rules) with the exchange annual APTC received

      • For months in which exchange data is available, the taxpayer monthly APTC received does not equal the computed exchange monthly APTC received

      • For any month, the taxpayer monthly APTC received is not within acceptable range (based on November / December business rules) with the exchange monthly APTC received

      272 FS incompatible with ACM, filing status is not MFJ in F1040/F1040A – Ineligible for ACM
    2. Breakdown of individual PTC error codes

    • The PTC error codes assigned to Exam that will be worked in conjunction with EITC DDb rule breaks includes the following: 190, 191, 193,194,195, 196, 197, 198, and 199.

    • The PTC error codes assigned to Exam that will be worked as single issue PTC includes the following: 190, 193, 194, and 196.

    • # These PTC error codes may include the following: 191, 195, 197, 198, and 199.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ These PTC error codes may include the following: 191, 195.

    Note:

    For Error code 344 Submission Processing has math error authority to disallow during processing

  3. PTC Flags

    PTC Flag CC DLITE Indicators Explanation
    PTC – SLCSP Flag   The taxpayer’s calculation for the Second Lowest Cost Silver Plan (SLCSP) exceeds the SLCSP for the Taxpayer's geographic area by 20% or more
    PTC FLAG 1 900 • The return filing status is not “Married Filing Joint”
    • The Taxpayer has been incarcerated for the full year (prisoner)
    • The return is claiming PTC
    PTC FLAG 2 900 • The return filing status is “Married Filing Joint”
    • Both Taxpayers have been incarcerated for the full year(prisoners)
    • The return is claiming PTC
    PTC FLAG 3 901 • The Taxpayer is less than 18 years old
    • The return is claiming PTC
    PTC FLAG 4 910 • The return has Schedule C aggregate loss that exceeds 20% of Earned Income
    • The return is claiming PTC.
    PTC FLAG 5 911 • Only if the taxpayer(s) filed a return in the previous year
    • The current year return claimed the same filing status as the previous year
    • The total exemptions on the current year return increased by three or more from the previous year • The return is claiming PTC.
    PTC FLAG 6 912 • The earned income on the return is between 300% to 400% of Federal Poverty Level (FPL)
    • The return is claiming PTC.
    • 300% of FPL = FPL Percentage of Poverty is equal to 300

    • 400% of FPL = FPL Percentage of Poverty is equal to 400

    PTC FLAG 7 913 • The return shows insurance premium payments made by the Taxpayer (Total PTC less APTC on Form 8962) are above a 17% of AGI
    • The return is claiming PTC.
    PTC FLAG 8 914 • The return is showing low FPL and did not claim Advanced PTC on Form 8962
    • The return is claiming PTC.

    (Low FPL = FPL Percentage of Poverty is equal to 200 or below).
    PTC FLAG 9 902 • The return filing status is not “Married Filing Joint”
    • The Taxpayer is 65 years of age or older for the full year
    • The return is claiming PTC
    PTC FLAG 10 903 • The return filing status is “Married Filing Joint”
    • Both Taxpayers are 65 years of age or older for the full year
    • The return is claiming PTC
    PTC FLAG 11 904 • The return shows no income
    • The return is claiming PTC

    Note:

    See the FPL in IRM 4.19.15.42.2,

    Common Terms, (3) & (4).

  4. CC DLITE uses the DDB FAST (Filing Analysis Summary Table) which houses consolidated view of taxpayer data and all filters fired across DDB compliance Projects. DLITE provides an at-a-glance view of many aspects of the taxpayer’s tax return and project scoring details. DDB FAST is loaded nightly; DLITE will be current the following morning.

    Through the use of the Command Code "DLITE" the tax examiners will be able to access DDb for the Classification Viewer Sheet

    • DLITE is a command code designed to allow the Tax Examiners access to the Dependent Database.

    • Tax Examiners will be able to view the PTC Error codes, PTC Exposure Amount, PTC Amount, and Advanced PTC Amounts

    • The PTC Exposure Amount is the total adjustment by which taxpayer’s account will be adjusted if PTC or APTC is disallowed.

    • This command code can be used on any Exam program since all returns will be scored (even if not selected) though the DDb.

    • DLITE must be used to work the PTC cases. The information obtained from this command code will act as the classification sheet.

    • Refer to IRM 4.19.14.4, Program Description, for the applicable PTC project codes

Non-EITC Filters

  1. The table below provides a description of each rule that will be displayed on IDRS using Command Code DLITE.

    Rule ID Rule Description
    970A ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    970B ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    970C ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    970D ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    970E ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    CTCA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    CTCB ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AOCA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AOCB ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AOCC ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AOCD ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    AOCR ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    CMBA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    FTCA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    FTCB ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    FTCC ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    FTCD ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    HCTA ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    HCTB ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    HCTD ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Pick-ups

  1. The Pick-up Program consists of returns selected for audit because the prior year audit is still open at the time the subsequent return is filed. DDb systemically selects the subsequent return for audit when filed, if the prior audit is still open at the time of filing, and the return fires a DDb rule. Refer to IRM 4.19.14.4, Program Description, for a list of the specific project codes.

  2. The examination is a full-scope audit and includes the disallowance of all dependents claimed on the return and any other tax credits and benefits claimed that are attributable to the dependent, such as Child Tax Credit, Child Care Credit, Education Credit or Head of Household Filing Status.

  3. The tax examiner must perform research on the prior year audit. A review of the prior year workpapers/audit information helps the tax examiner to identify which child(ren) was disallowed previously and if they are the same child(ren) claimed on the Pick-up return. Similarly, knowing whether the prior year return was adjusted due to lack of documentation, no response, or undeliverable assists the tax examiner on how to conduct the examination. The review of the prior year workpapers can affect the determination made in the year under examination.

Questionable Refund Program (QRP)

  1. Integrity and Verification Operation(IVO) identifies individuals filing false returns claiming questionable income and/or withholding (false or inflated), and refundable credits. IVO handles cases with false income and withholding only via the Wage/Withholding Only (WOW) (Notice CP05A) Overview process per IRM 25.25.11.2, Wage/Withholding Only (WOW) (Notice CP05A) Overview.

  2. Cases with false income and withholding only, or the ASED is 12 months or less are sent to AM for processing.

  3. Cases with refundable credits in addition to the false/inflated income and withholding and the ASED is more than 12 months will be referred to Examination.

QRP Referral Process

  1. The Electronic Fraud Detection System (EFDS) will systemically send weekly files to DDb to filter cases and open selected Exam cases on AIMS and push files to RGS/CEAS.

  2. For the automated project codes 0173, 0584, 1303, and 1304 DDb will also send a file to systemically generate the CP 75D/75A notice as the initial contact letter (ICL).

    Note:

    If PTC Error Code is other than 190, 191 or 195; Excess Advance Premium Tax Credit Issue or Premium Tax Credit Issue will not be automated. For these Project Codes (PC); Error Codes other than 190, 191 or 195 will be routed to B2 for manual creation of the APTC or PTC issue

  3. All other QRP project codes require the manual preparation/issuance of the ICL. For PC 0263 cases, Batch Leverage Process (BLP) may be used to generate the appropriate ICL from the 566 family. (566-E if payer data is available). Filer Bridge may be used to generate the ICL for W&I cases.

  4. DDb will send a reject file back to EFDS weekly. A TC 971 AC 136 will be posted on the account of all L freeze rejects (TC 42X). The TC 971 AC 136 will cause the case to reject out of Batch to consider incorporating additional issues. See EFDS Referral/Open Exam procedures for further instructions.

  5. The dependents Filing Status, Health Coverage Tax Credit (HCTC), and American Opportunity Tax Credit (AOTC) may be additional examination issues on QRP cases. See IRM 4.19.14.2, Tax Law Changes’ (3) for tax law changes to refundable credits. See IRM 4.19.15.29, Health Coverage Tax Credit – IRC 35 for more information on HCTC and IRM 4.19.15.3.1, Lifetime Learning Credit and Hope/American Opportunity Tax Credit (AOTC), for more information on AOTC.

  6. All statutory adjustments apply when adjusting dependents or income.

Prisoner Returns
  1. All cases with prisoner income are identified with source code 11 and ARC 24.

  2. The taxpayer should be incarcerated the entire tax year.

  3. Source code 11 cases are systemically delivered with all other QRP cases

  4. Work as full scope audit. For the automated project codes 0173, 0584, 1309 and 1304 DDb will also send a file to systemically generate the CP 75D/CP 75A notice as the initial contact letter (ICL). For PC 0263 cases, Batch Leveraging Process (BLP) process may be used to generate the appropriate ICL from the 566 family, (566-E if payer data is available). Filer Bridge may be used to generate the ICL for W&I cases and generates a 566-S.

    Note:

    If PTC Error Code is other than 190, 191 or 195; Excess Advance Premium Tax Credit Issue or Premium Tax Credit Issue will not be automated. For these PC; Error Codes other than 190, 191 or 195 will be routed to B2 for manual creation of the APTC or PTC issue

  5. If a reply is received, all cases should be researched utilizing cc FTBOL or DLITE to confirm incarceration and release dates.

    • If the taxpayer was incarcerated the full year and all income was confirmed, EITC and MWPC are disallowed per GATT (General Agreement on Tariff and Trades) legislation.

  6. If the taxpayer was not incarcerated the entire year or not incarcerated at any time during the year, notate on work papers and work following normal procedures.

  7. Please review carefully any documents submitted and compare with IRPTR data. IRM 4.19.14.9.4, QRP Replies and Closing Process for additional information on working QRP Replies.

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

General Agreement on Tariff and Trades (GATT)
  1. GATT cases are prisoner returns where the income has been verified good, but does not qualify as earned income for calculating refundable credits such as EITC, ACTC and MWPE.

  2. PC 0603 (GATT) cases are manually delivered by IVO via spreadsheet to HQ Exam. HQ Exam will coordinate to have the cases opened on AIMS by DDb.

  3. The taxpayer must submit documentation that income was not earned while incarcerated.

QRP Source Code and Project Codes

  1. Source codes identify a type of case, and the Project Code identifies the examination issues.

    Note:

    For QRP, source code 06, 08 and 11 have different definitions than outlined in the Document 6209.

  2. Cases identified as Adoption Credit cases should identify this credit as an exam issue and include the Form 886-H as an enclosure with applicable letters and reports. The Adoption Credit should be disallowed in full pending receipt of supporting documentation outlined on the Form 886-H. Procedures for making a determination on Adoption Credit are outlined under IRM 4.19.15.5, Adoption Credit and Qualified Adoption Expenses (QAE).

  3. EITC and Non-EITC QRP cases are full scope audits including the Filing Status, and if present, Making Work Pay Credit (MWPC), Education Credit/American Opportunity Credit (AOTC), Premium Tax Credit (PTC) and/or Additional Child Tax Credit (ACTC).

    Note:

    Project Codes 0263, 0390, 0584, and 0611 will not include PTC

    Note:

    PC 0173 will not include AOTC, PTC, or MWPC

    Note:

    Since QRP are full scope audits, non-income issues should continue to be pursued even if income is verified on IRPTR per IRM 4.19.14.9.4, QRP Replies and Closing Process.

    Exception:

    If performing other case research and income is verified via IRPTR prior to issuance of the ICL and DLITE does not indicate any DDB or DEBR rule breaks, the QRP case may be surveyed. This should only be in the course of other research. Do not specifically research for IRPTR prior to ICL issuance for the sole purpose of identifying cases to survey.

    BOD EITC or Discretionary Project Code Source Code Type of Case/Examination Issues
    SB/SE EITC 0173 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I Discretionary 0263 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE Discretionary 0263 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 0390 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 0584 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 0603 11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 0611 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE EITC 0611 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 1009 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE EITC 1009 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 1082 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I Discretionary 1107 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I Discretionary 1162 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE Discretionary 1162 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I Discretionary 1166 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I or SB/SE EITC 1303 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE EITC 1304 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I EITC 1311 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    W&I Discretionary 1322 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SB/SE Discretionary 1322 06 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          11 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
          70 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

QRP Examination Process

  1. Procedures apply to EITC and Non-EITC cases unless specified. Enclosures are based on examination issues as outlined in parentheses below.

    Project Code Initial Contact Letter Enclosures Automated or Manual Process
    0173, 0584 1303, 1304 CP 75D/CP 75A
    Form 14950,
    Premium Tax Credit
    Form 886- H-AOC
    Form 886-H-DEP
    Form-H-EIC
    Form 886-H-HOH
    Form 886-L
    Publication 3498-A
    Publication 4134
    Form 11652 (if Sch. C)
    Automated process.
    CP 75D/CP 75A Notice is systemically generated as the ICL when case is selected and opened on AIMS. RGS batch processing will be used to generate subsequent letters and reports.
    0263, 1107, 1166, 1162, 1322 Letter 566 (566- E if payer data is available)
    Form 14950
    Form 886-A (FTC)
    Form 886-H DEP
    From 886-H HOH
    Form 886-H AOC
    Form 886-H Adopt-0
    Form 11652 (if Sch. C)
    Publication 3498-A
    Manual process:
    Issues from spreadsheet may be used to create L 566-E if payer data is available and other letters
    0390, 0611,1009, 1082, 1311 Letter 566 (566-E if payer data is available)
    Form 14950
    Form 886-H-EIC
    Form 886-L
    Form 886-H DEP
    From 886-H HOH
    Form 886-H AOTC
    Form 886-H Adopt- 0
    Publication 3498-A
    Publication 4134
    Form 11652 (if Sch. C)
    Manual process: Letter 566, 525 and first exam report need to be manually completed. Cases can then be introduced to RGS Batch for Aging and Closing.

    If available, use EFDS-WMS information to determine all issues to incorporate into letters and reports. IRM 4.19.14.9.4.1, QRP Case Information from EFDS - Workload Management System (WMS).
    0603 Letter 566 Form 886-A (GATT)
    Publication 3498-A
    Manual process: Letter 566, 525 and first exam report need to be manually completed. Cases can then be introduced to RGS Batch for Aging and Closing.

    If available, use EFDS-WMS information to validate only issue is EITC to incorporate into letters and reports IRM 4.19.14.9.4.1,
  2. Several PCs have miscellaneous issues on them that can be by themselves or in combination with other credits. An asterisk indicates the enclosure is only included when it is identified as an exam issue on the case in question. No asterisk indicates it is always an enclosure for this PC as the exam issues are consistent.

  3. PC 0611 requires information from EFDS-WMS to identify all examination issues. See IRM 4.19.14.9.4.1, QRP Case Information from EFDS – Workload Management System (WMS).

  4. After ICL mail out, all QRP project codes should follow existing RPS examination process letters and time frames as outlined under IRM 4.19.10, Examination General Overview , for issuing the ICL, 30 day Letter 525 and Letter 3219, Statutory Notice of Deficiency.

  5. Cases requiring manually prepared ICL, Letter 525 and first exam report should be introduced to RGS Batch for Aging and Closing as soon as possible.

  6. Taxpayers with more than one tax year open (multi-year) should be bundled together and move through the examination process and AIMS status update as one package.

  7. Refer to IRM 4.19.14.9.2, QRP Source Code and Project Codes, for additional information on identifying exam issues.

  8. PC 0584, PC 0390, PC 0611, PC 1009, PC 1082 and PC 1303 will be full scope EITC audits and PC 0263, PC 1107, PC 1162, PC 1166, and PC 1322 will be full scope Non-EITC audits to include, AOTC and Education credits, HCTC dependent(s) and filing status.

    1. MWPC is a statutory adjustment based on income/withholding disallowance.

    2. If present, other credits such as Adoption Credit, Child Care Credit, Child Tax Credit, Education Credit, Student Loan Interest Deduction, Health Coverage Tax Credit, Premium Tax Credit and Tuition and Fees Deduction should be statutorily adjusted/disallowed when preparing or revising reports.

  9. The following are insert paragraphs for the Form 886-A for the QRP issues not addressed on Form 886-H-EIC and Form 886-L, Form 886-H-DEP, Form 886-H-HOH, and Form 886-H-AOC.

    1 GATT (PC 0603)
    Our records show you used amounts earned while you were an inmate to figure your EITC. These amounts don’t qualify as earned income for EITC. Please send us documents that show your earnings were not for work performed while in a penal institution, a work release program, or a halfway house.
Household Help Income
  1. The Household Help (HSH) program is income reported on line 7 with no Form W-2 attached to the return.

  2. Beginning filing season 2013, W&I will select Household Help (HSH) cases through DDb as well as EFDS.

  3. HSH cases with EITC will open in Project Code 0390 and HSH cases with no EITC will open in Project Code 1107.

  4. Cases opened in DDb will have Tracking Code 6485.

  5. The return should have line 7 income only. The income should be limited to HSH, but occasionally other income may be reported.

  6. HSH cases are full scope audits including dependent(s), filing status EITC, ACTC, and AOTC.

  7. All statutory adjustments apply based on income and dependent being disallowed.

  8. In addition to verifying income, the taxpayer must also send in supporting documentation for any credits claimed.

  9. The cases will be opened on AIMS and worked as follows:

    • Issue ICL with appropriate enclosures as stated in IRM 4.19.14.9.3, QRP Examination Process. The appropriate letter from the 566 family should be used (566-E if payer data is available).

    • For all replies, research IRPTR for income totals. If unreported income is listed on IRPTR, include on report. For source code 11 - or DLITE cases, use CC FTBOL (P) to confirm incarceration and release dates. If the taxpayer was incarcerated the full year, all refundable credits should be disallowed per GATT legislation.

    • Acceptable documentation to verify income includes; pay stubs and letter from employer on employer’s letterhead. Letter from employer must include date(s) work was performed, income earned and general description of work completed.

    • On some occasions, the taxpayer may have worked several small jobs and was unable get a letter from each employer. If the taxpayer can provide letters from the majority of employers, tax examiners can use judgement to accept a written statement from the taxpayer for the remaining employers. The statement must have specific information on the employer's name, TIN/SSN (if known) location of the job, wages earned, date and duration of employment.

      Note:

      If judgement is used it must be documented on the workpapers why.

    • Most HSH are not self-employed. However, the taxpayer may have reported self-employment (SE) income erroneously on Line 7. If so, this income reported as wages should be adjusted to SE Income with SE tax applied. Do not revise a tax return to claim income on a Schedule C without a full explanation of why the taxpayer is self-employed. Depending upon the circumstances, it may be more appropriate to ask the taxpayer to file a Form 8919, Uncollected Social Security and Medicare Tax on Wages, and pay the employer portion of SS or accept HSH income—there is no SS obligation.

  10. Follow existing Exam procedures for standard exam letter and EITC/discretionary suspense times.

QRP Replies and Closing Process

  1. All replies to the EITC issue will be worked as outlined in IRM 4.19.14, EITC Revenue Protection Strategy.

  2. If disallowing withholding amounts manually with TC 807, include TC 170 for zero to suppress Estimated Tax Penalty on Form 5344, Examination Closing Record.

  3. All Schedule C Net Profit issues are to be worked in accordance with IRM 4.19.14.6.3, EITC Schedule C Responses.

  4. All replies to the FTHBC issue will be worked as outlined in IRM 4.19.15.38, First-time Homebuyer Credit -- IRC 36.

  5. All replies to the AOTC issue will be worked as outlined in IRM 4.19.15.3.1.1, Education Tax Credits - Evaluating Taxpayer Responses .

  6. Do not update the address on IDRS for QRP cases unless the taxpayer submitted a request in writing, such as a Form 8822, Change of Address.

  7. Be alert to the potential Identity Theft (IDT). If a taxpayer indicates or if case analysis indicates the taxpayer is a victim of identity theft, follow the procedures in IRM 4.19.19.10.10 Identity Theft,for telephone contact and IRM 25.23.10.4.1. , IDTVA - C Exam Identity General Procedures, for other contact, including address changes. Undeliverable mail should follow procedures outlined in IRM 4.19.13.14 Undeliverable Mail, (4).

  8. All replies to wages and withholding issues will be worked as outlined in the table below.

    If Then
    Taxpayer disputes findings and states they worked for the employer. If the IRP documents are available check IRPTR to see if the wages are listed.
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Taxpayer sends in documents verifying they worked for the employer. Examiners can accept the following:
    • Pay stubs

    • Letter from employer on the employers letterhead.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Taxpayer states he/she never worked for the employer and it appears they agree to the change.
    • If the taxpayer signed the report close as agreed

    • If the taxpayer has not received a report, send an examination report and ask them to sign if they agree.

    Taxpayer states he/she did not file the return and that he/she is a victim of identity thief See IRM 4.19.13.26, Campus Exam Identity Theft, for instructions.
    If HSH and Taxpayer states it is self-employment income. Check Form W-2 Payee entity information on IRPTR and if it matches accept the income. Adjust as Schedule C income and include SE tax. Continue to disallow EITC if not verified.
    Determination made to close case as No Change, Agreed or Default. Follow existing procedures for EITC closures under IRM 4.19.14.6.6, Closing Actions.
    Prisoner cases (S/C) 11
    1. Obtain incarceration and release dates from WMS-EFDS or FTBOLP and notate workpapers

    2. If taxpayer is full year prisoner for the tax year and documents provided confirm good wages/withholding and/or allowable EITC, inform the taxpayer that EITC, MWPC and/or RRC can’t be calculated based on earned income from prison. IRM 4.19.14.9.3, QRP Examination Process.

    3. If the taxpayer is replying to the ICL (CP 75D or 566) issue Letter 525 and Form 4549 with explanation.

    4. If the taxpayer is replying to Letter 525, issue Letter 692 with revised report (Form 4549) removing withholding. Update to status 23.

  9. For Household Help (HSH) cases the following should be considered as general information when evaluating responses:

    Household Employee Self - Employed
    Employer controls not only what work is done, but how it is completed. Worker controls how the work is scheduled and completed.
    Employer provides the tools/supplies needed to complete the work. Usually provides their own tools/supplies to complete the work.
    Does not matter whether the work is full-time or part-time or how the employee is paid, i.e., hourly, daily, weekly or by the job. Work may be performed outside the home.
    Does not matter if the employee was hired through an agency or association. A company/agency provides the worker and controls the work and how it is completed.
    Examples: baby-sitters, nannies, housekeepers/maids, drivers, health aides/private nurses, caretakers, yard workers, similar domestic workers, etc. Examples: baby-sitters, nannies, housekeepers/maids, drivers, health aides/private nurses, caretakers, yard workers.


    Refer to Publication 926, Household Employers Guide for additional information.

  10. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

QRP Case Information from EFDS - Workload Management System (WMS)
  1. There are designated EFDS-WMS Coordinators (EWC) with access to EFDS-WMS in each campus.

  2. HQ will provide a weekly listing of cases opened to the Campus ICM. The spreadsheet includes:

    1. Wages claimed on the return and verified amount

    2. Withholding claimed on the return and verified amount

    3. Employer/payer EIN for each income document

    4. The spreadsheet data should be used to complete work papers, letters and reports.

    Note:

    If more than one employer, EFDS-WMS prints will be needed.

  3. If needed, the designated EWCs at each site can access EFDS-WMS to:

    1. Secure and print out the EFDS Return Detail for the case file so examiners know what issues to incorporate into the work papers, letters and reports.

    2. EWCs will access WMS for TC 971 AC 136 cases to secure EFDS Return Detail. See IRM 4.19.14.9.6, - Z Freeze Cases.

    Note:

    Wage and withholding amounts will not always be a total disallowance. If the spreadsheet or EFDS Return Detail reflects that a portion of the wage and withholding amounts was verified then only the "unverified" amount should be disallowed.

    Note:

    The “Wages claimed” and the “Withholding claimed” is based on data input into STARS by IVO and may not match line 7 on the return.

QRP Negative Deficiency Procedures

  1. The negative deficiency occurs when there was tax on original filing which is reduced to zero when the false wages are removed and the amount of EITC and/or ACTC or other Credits reversed is less than the original tax amount.

  2. The following procedures apply for cases meeting this condition:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Input adjustments to remove false wages, withholding and reverse the EITC and/or ACTC credit attributable to the false wages that have been disallowed.

    • Close case as DC 12.

- Z Freeze Cases

  1. Starting in FY 2010 the Z freeze inventory will be reduced significantly because it is being replaced with the TC 971 AC 136 for QRP processing. These procedures are for residual inventory or CI identified schemes.

  2. Work the case following standard QRP procedures as outlined in the 4.19.14.9, Questionable Refund Program (QRP).Once the case is completed, any adjustments made to the account will go unpostable due to the Z freeze. CI’s SDC will subsequently seek force posting approval from the special agent.

EFDS Referrals/ Open Exam

  1. In FY 2010 if AIMS is already open the case will reject back to AM-TAP as an "L freeze" and a TC 971 AC 136 will systemically post.

  2. The TC 971 AC 136 is needed to reject the case out of RGS Batch when it moves to the next step in the exam process alerting Exam to research on EFDS-WMS and incorporate the additional issues into the examination.

    Note:

    It is important when completing the EFDS-WMS research and revising the reports that the TC 971 AC 136 is reversed or the case will continue to reject out of Batch throughout the exam process.

    If Then
    The case is in a status prior to 90 Day
    1. Coordinate one of the designated employees with EFDS-WMS access in your respective site to secure/print the EFDS Return Detail which will identify what issues need to be incorporated into the exam report.

    2. Once the exam report has been revised to include the additional issues, input AIMS Tracking Code 7571 and TC 972 AC 136 to reverse the TC 971. Do not change the source and Project Code for the case on AIMS.

    3. Examiners should introduce/reintroduce cases with revised reports into RGS Batch immediately after inputting the TC 972 AC 136.

    The case is in status 24 after 90 Day Letter has been issued
    1. Examiners cannot incorporate additional issues into exam report.

    2. TC 971 AC 136 will post to cases in status 24.

Math/Clerical Error Program

  1. Math or clerical errors are defined by IRC 6213(g)(2) and include:

    1. An error in addition, subtraction, multiplication, or division shown on any return

    2. An incorrect use of any table provided by the IRS with respect to any return if such incorrect use is apparent from the existence of other information on the return.

    3. An entry on a return of an item which is inconsistent with another entry of the same or another item on such return.

    4. An omission of information which is required to be supplied on the return to substantiate an entry on the return.

    5. An entry on a return of a deduction or credit in an amount which exceeds a statutory limit imposed by subtitle A or B, or chapters 41, 42, 43, or 44, if such limit is expressed as a specific money amount or as a percentage, ratio, or fraction and if the items entering into the application of such limit appear on such return.

    6. An omission of a correct TIN required under Section 32 to be shown on the return in order to claim the earned income credit.

    7. An entry on a return claiming the earned income credit with respect to self-employment earnings on which the self-employment tax imposed by Section 1401 has not been paid.

    8. An omission of a correct TIN required under Section 21 (expenses for household or dependent care) or IRC 151 (personal exemptions).

    9. An omission of a correct TIN required to be included on the return under IRC 24(e), the child tax credit.

    10. An omission of a correct TIN required to be included on the return for purposes of IRC 25A(g)(1) relating to higher education tuition and expenses (effective for tax years beginning after December 31, 1997).

    11. An omission of information required by IRC C 32(k)(2) relating to taxpayers making improper prior claims of the earned income credit, or for tax years after 2015, an entry on the return claiming EITC for a taxable year for which the credit is disallowed under a 2 or 10 year ban.

    12. The inclusion of a TIN required on the return under IRC 21, 24, or 32 (relating to CDCC, CTC/ACTC or EITC) if such TIN is of an individual whose age affects the amount of the credit and the computation of the credit reflects the treatment of such individual as being of an age different from the individual’s age based on such TIN.

    13. The entry on the return claiming EITC with respect to a child if, according to the Federal Case Registry of Child Support Orders, the taxpayer is a noncustodial parent of such child,

    14. An omission of any increase required for first time homebuyer credit recapture,

    15. The inclusion on a return of an ITIN issued after December 18, 2015 which has expired, been revoked by the Secretary, or is otherwise invalid.

    16. An omission of required information on a return for tax years after 2015 relating to improper prior claims for CTC/ACTC/ODC or an entry on the return claiming the credit for a taxable year for which the credit is disallowed under a 2 or 10-year ban

    17. An omission of required information on a return for tax years after 2015 relating to improper prior claims for AOTC or an entry on the return claiming the credit for a taxable year for which the credit is disallowed under a 2 or 10-year ban


    A taxpayer shall be treated as having omitted a correct TIN for purposes of the preceding sentence if information on the return with respect to the individual’s TIN differs from the information the Secretary obtains from the person issuing the TIN.

  2. This legislation permits assessment of additional tax resulting from math or clerical errors.

  3. The statute provides the taxpayer who receives a math/clerical notice of assessment for additional tax with the right to appeal. The appeal:

    1. Must be made within 60 days.

    2. Must request an abatement of the assessment.

    3. May explain any disagreement with the amount of the assessment.

  4. All math/clerical error type appeals for abatement are received in Customer Accounts Service, Accounts Management (AM). Only returns without substantiating documentation or supporting information for the figures on the return will be referred to examination.

Math Error Referrals to Examination - EITC, CTC/ACTC/ODC

  1. If a taxpayer appeals a math error notice within 60 days of the notice mail out date, but does not provide substantiation to support the issue, the case is considered an unsubstantiated math error protests. Accounts Management (AM) will send unsubstantiated math error protests to Examination, using the procedures that are outlined in IRM 21.5.4.5.5, Math Error Unsubstantiated Protest Processing.

  2. Each year more math errors are being developed for credits/issues other than EITC. It is important that all new math error protests receipts are reviewed for accuracy and other issues that should be included in the examination. The examination issues should be driven by the Math Error Authority (MEA) codes and/or the review for other issues. The math error notice codes in Document 6209 shows the issues related to the MEA.

  3. Math Error Notice Code 653 is used when the taxpayer is required to recertify for EITC but failed to attach Form 8862 to the original return. When taxpayer replies with Form 8862 within 60 days, AM uses CC DDBCK to score and classify the recertification issue. If CC DDBCK selects the return for examination, AM will adjust the account back to the original filing, using blocking series 74X, PC7, HC3, PDC1 and forward the case to Examination as a DDBCK select through CIS. EITC unsubstantiated math errors will create in Project Code 0600 or Project Code 1172, if Schedule C filters are broken.

  4. All other unsubstantiated math error protests received within 60 days will be forwarded to Examination for review through CIS. The DLN blocking series (BS) 74X a and priority code 7 are used by AM to adjust the account to the original filing, freeze the refund and create AIMS. All other unsubstantiated math errors protests will create in Project Code 0125, Math Error Non-EITC.

    Note:

    The math error adjustment must be on the account before the Examination is started.

  5. Prior to referring unsubstantiated math errors protests to Examination, AM issues a letter to inform taxpayers their case was sent to Examination for review.

  6. If a review identifies the EITC return will be examined for other issues, the issues should be classified and included in the Examination process based on the following criteria:

    • If the Math Error was a result of the taxpayer’s requirement to recertify eligibility for the EITC, the examination will be conducted by Correspondence Examination.

    • If the screening identifies other complex issues on the case that cannot be addressed in Correspondence Examination, the case should be forwarded to the appropriate Area Office for review and the refund released. Initiate refund procedures and input Transaction Code 571 on partial refund returns being transferred to the appropriate Area Office.

  7. The case should be reviewed and the initial contact letter prepared by a tax examiner within thirty (30) days of the TC 470 cc 94 date that is associated with blocking series 74X and the TC 764 adjustment. Use DDBCV to review math errors selected by DDBCK.

  8. When working a taxpayer’s response on a Math Error case, research the prior audit information in CEAS to identify if the prior audit adjustments are relevant to the EITC under current examination.

    • When a case is no changed, document workpapers to explain why the EITC was disallowed in the prior year examination and is now allowed in the current examination

    • The 2-Year Ban should be considered based on the facts and circumstances of each case. Refer to IRM 4.19.14.7.1, 2/10 Year Ban – Correspondence Guidelines for Examination Technicians (CET), for procedures.

    Note:

    The reasoning for assertion or non-assertion of the 2-year ban must be documented in the workpapers.

  9. See IRM 4.19.15, Discretionary Programs, for processing Discretionary Math Errors PC 0125.

EITC Math Error Processing

  1. EITC PC 0600 and PC 1172 cases will follow the three letter exam process as we do with all EITC examinations; ICL (566 S), 30 day (525) and Statutory Notice of Deficiency (SNOD) 3219. See IRM 4.19.10, Examination General Overview, for applicable suspense time frames

  2. The Letter 566 S (SC/CG) will be used as the initial contact letter with Form 886-H-EIC, Form 886-H-DEP, Form 886-H-HOH, Form 2297, and Publication 3498-A. Form 11652 will be sent for PC 1172 only.

  3. A Letter 3219, Statutory Notice of Deficiency, will be issued on all unagreed or no response cases.

  4. If case is closed as a default and the refund is frozen, a certified notice of claim disallowance, Letter 105C will be issued.

DDBCK/CAT A (Form 1040X) EITC Claims

  1. This section defines procedures for current year and/or two prior year EITC Form 1040X Claims/Amended Returns that will be systemically scored and selected through the Dependent Database Check command code DDBCK.

  2. Accounts Management processes a claim with EITC that meets CAT A Criteria using the command code DDBCK. The SSN of the Qualifying Child(ren) will be run against all the DDb rules and Filters. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. The current and two prior year Form 1040X Claims/Amended Returns will be transferred to the co-located Examination or as directed by command code DDBCK through the Correspondence Imaging System (CIS). See the following table:

    If And Then
    TY 2015 and subsequent EITC Form 1040X Claim/Amended Returns without a Schedule C are systemically scored and selected by CC DDBCK.

    Note:

    CIS Claims will be received through the Exam Electronic Inventory and accessed through the dedicated terminal for Amended returns.

    Taxpayer claiming additional or new EITC not claimed on original return.
    1. Verify:
      IMFOLT – TC 424 posting
      AIMS – PC 0367
      EGC 5005
      Source Code 30
      Status Code 08

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify rule breaks. The rule breaks identify the questionable issues. Claims should be reviewed for related EITC issues; filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X as well as additional Non EITC issues that may require further classification

    4. Mail letter 566(D) with appropriate Form 886 to start the examination within 30 days of claim receipt.

    5. Follow existing Claim procedures in IRM 4.19.16.2.4, Claims Processing in Examination Operation.

    TY 2015 and subsequent EITC Form 1040X Claim/Amended Returns with Schedule C are systemically scored and selected by CC DDBCK based on selectable rule breaking and Schedule C Filters firing.

    Note:

    CIS Claims will be received through the Examination Electronic Inventory and accessed through the dedicated terminal for Amended Returns.

    Taxpayer is claiming Schedule C changes to self employment income/expense/tax and claiming additional or new EITC not claimed on original return.
    1. Verify:
      IMFOLT – TC 424 posting
      AIMS – PC 0026
      EGC 5005
      Source Code 30
      Status Code 08

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify rule breaks. The rule breaks identify the questionable issues. Claims should be reviewed for related EITC issues; filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X as well as additional Non EITC issues that may require further classification

    4. Mail letter 566(D) with appropriate Form 886 to start the examination within 30 days of claim receipt.

    5. Follow existing Claim procedures in IRM 4.19.16.2.4.

    TY 2015 and subsequent. EITC Form 1040X Claim/Amended Returns meeting CAT A criteria are scored and identified by CC DDBCK. Taxpayer claiming additional or new EITC that was not claimed on original return.
    1. Manually classify claims for possible selection. If selected, open on AIMS using
      Project Code 0370,
      Source Code 30,
      Status Code 08.

    2. Mail Letter 566(D) with appropriate Form 886 to start the examination within 30 days of claim receipt.

    3. Follow existing Claim procedures in IRM 4.19.16.2.4.

    TY 2015 and subsequent EITC Form 1040X Claim/Amended Returns with Schedule C meeting CAT A criteria are scored and identified by CC DDBCK and Schedule C filters firing .

    Note:

    CIS Claims will be received through the Examination Electronic Inventory and accessed through the dedicated terminal for Amended Returns.

     
    1. Manually classify claims for possible selection. If selected, open on AIMS using:
      Source Code 30,
      Project Code 0386,
      Status Code 08

    2. Mail Letter 566(D) with the appropriate Form 886 to start the examination within 30 days of claim receipt.

    3. Follow existing Claim procedures in IRM 4.19.16.2.4.

    TY 2015 and subsequent EITC Form 1040X Claim/Amended Returns with Recertification Indicator 1 or 9 and EITC was not claimed on the original return, are systemically scored and selected by CC DDBCK.  
    1. Verify:
      IMFOLT – TC 424 posting
      AIMS – PC 0625
      EGC 5005
      Source Code 30
      Status Code 08

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify rule breaks. The rule breaks identify the questionable issues. Claim should be reviewed for related EITC issues; filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X as well as additional Non-EITC issues that may require further classification

    4. Follow existing Claim procedures in IRM 4.19.16.2.4.

      Note:

      SeeIRM 4.19.14.7, Recertification, to determine when recertification indicator must be removed.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Taxpayer claiming EITC and EITC was Previously disallowed (Math Error Code 653)
    1. Verify:
      IMFOLT – TC 424 posting
      AIMS – PC 0625
      EGC 5005
      Source Code 30
      Status Code 08

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify questionable issues. Claims should be reviewed for related EITC issues; filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X as well as additional Non-EITC issues that may need further classification.

    4. Mail Letter 566D with Form 886 H to start examination within 30 days of claim receipt.

    5. Follow existing Claim procedures in IRM 4.19.16.2.4.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Taxpayer claiming EITC and EITC was previously disallowed
    1. Verify:
      IMFOLT:TC424 posting
      AIMS PC 0600
      EGC 5005

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify questionable issues. Claims should be reviewed for related EITC issues, such as filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X; Non-EITC issues should also be classified

    4. Follow Math Error procedures in IRM 4.19.14.10, Math/Clerical Error Program, to initiate the examination within 30 calendar days of the TC 470 cc 94 date that is associated with the DLN blocking series 74X and the TC 764

    5. Follow existing Math Error procedures in IRM 4.19.14.10.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Taxpayer claiming EITC and EITC was previously disallowed
    1. Verify:

      IMFOLT: TC424 posting

      AIMS PC 1172
      EGC 5005

    2. Establish/assign on CEAS

    3. Review Validation Results (DDBCK print, retrieve if necessary) to identify questionable issues. Claims should be reviewed for related EITC issues, such as filing status, exemption, Child Tax Credit, Child Care Credit, Education Credit, etc., if included on Form 1040X; Non- EITC issues should also be classified

    4. Follow Math Error procedures in IRM 4.19.14.10 to initiate the examination within 30 calendar days of the TC 470 cc 94 date that is associated with the DLN blocking series 74X and the TC 764.

    5. Follow existing Math Error procedures in IRM 4.19.14.10.

  4. This section defines procedures for prior year EITC Form 1040X Claims/Amended Returns not being scored and selected through the Dependent Database Check CC DDBCK.

    If And Then
    TY 2013 and prior Form 1040X Claim/Amended returns without an EITC Recertification Indicator

    Note:

    Form 1040X Claim/Amended returns with Recertification Indicators 2 or 4 will only be reviewed for years of disallowance. If received for any other year, send Letter 105C to inform Taxpayer that his claim will not be considered. Explain the 2-10 year ban.

    Taxpayer claiming an additional child or EITC not claimed on original return
    1. Open using:
      Project Code 607,
      Source Code 30,
      Status Code 08

    2. Mail letter 566(D) and appropriate Form 886-H to start the examination within 30 days of claim receipt.

    3. Follow existing claim procedures in IRM 4.19.16.2.4, Claims Processing in Examination Operations.

    Presently open on the AIMS data base  
    1. Associate claim with open case.

    2. Follow existing procedures.

    Form 1040X Claim has a Duplicate Dependent condition It has been determined that the Form 1040X is the non-custodial/third party of claim receipt.
    1. Open with:
      Project Code 652,
      Source Code 30,
      Status Code 08.

    2. Mail Letter 566(D) and Form 886-H to start the examination within 15 days.

Claims Processing in Examination Operations

  1. See IRM 4.19.16, Claims, for instructions and processing procedures for Claims cases.

Other Credits

  1. This section provides guidance for working taxpayers’ correspondence received in response to examination notices for Other credits. If qualified, the taxpayer may claim other credits. Examination Employees are responsible for researching and utilizing the information provided by the taxpayer to determine eligibility.

Child Tax Credits

  1. Per IRC 24 taxpayers who have qualifying children are entitled to Child Tax Credit. Use the following guidelines to determine if the taxpayer has a qualifying child:

    CTC (DQC) Acceptable Documentation
    Relationship Same as dependent QC IRC 24(c)(1)IRM 4.19.14.6.5, EITC - Personal Exemptions and Dependents. Same as dependent QC IRM 4.19.14.6.5.
    Residency Same as dependent QC IRC 24(c)(1)
    Exceptions apply for children of divorced or separated parents
    Same as dependent QC IRM 4.19.14.6.5
    Age Under age 17 at end of the year IRC 24(c)(1) Same as dependent QC IRM 4.19.14.6.5
    Support Same as dependent QC IRC 24(c)(1) Same as dependent QC
    Citizenship Citizen/national/resident of US IRC 24(c)(2)I
    1. The child must be a U.S. Citizen or National or a Resident of the U.S.

    2. Birth certificate, citizenship papers, Social Security Card.

    3. School records.

    Married Child Joint Return Does not apply  
    Tie-Breaker Rule Yes  
    Requirements and Special Rules Does not apply  
  2. Age of Attainment - Revenue Ruling 2003-72 applies a uniform method of determining when a child attains a specific age for the purposes of child tax credit, dependent care credit, adoption credit, earned income credit, dependent care assistance programs, foster care payments, adoption assistance programs and dependency exemptions. The ruling provides that a child attains a given age on the anniversary of the date that the child was born. For example, a child born on Jan. 1, 1987 attaining the age of 17 on January 1, 2004. Previously IRS treated a child as obtaining an age on the day before his birthday. Math error notices may have been issued disallowing the credit. For all tax years, where the above credits were disallowed because the age of attainment was considered to be the day before the birthday of the child, adjust and allow the credit if all other qualifying criteria are met.

  3. Large, Unusual, or Questionable Items - During the audit of the Child Tax Credit and related issues, if a material issue is identified on the return, that issue should be questioned/audited with the approval of your manager.

  4. Related Audit Issues and Statutory Adjustments - When you disallow the Child Tax Credit, based on

    If Taxpayer Fails Then Disallow
    Relationship Test
    • Dependent Qualifying Child (DQC)

    • Dependent Care Credit (CDCC)

    • EITC

    Residency Test
    • DQC

    • Child Dependent Care Credit

    Age Test
    • CDCC unless Child physically or mentally incapable

    Support Test
    • DQC

    • CDCC unless spouse physically or mentally incapable

    • Education Credit if person paid more than 1/1 of his or her own support

    • Qualifying Relative if person paid more than 1/1 of his or her own support

    • Head of Household

    Tiebreaker Rules EITC
    • DQC

    • EITC

  5. Standard Paragraphs - 6503, 6505, 6506, 6508, 6510, 6514, 6515, 6516, 6517, 6518

  6. Additional Paragraphs - 886 Suggestions:

    Dependent Qualifying Child (DQC)
    Because we have disallowed your Child Dependent Care Credit due to the qualifying child failing to meet the relationship requirements, the child does not qualify as your dependent, therefore, we have disallowed the exemption related to this child.
    Because we have disallowed your Child Dependent Care Credit due to the child failing the residency test, the child does not qualify as your dependent. We have disallowed the exemption related to this child.
    Because your Child Dependent Care Credit was disallowed due to the Tiebreaker Rules for support, we have disallowed the dependency exemption for this child.
    Child Tax Credit
    We have disallowed the Child and Dependent Care Credit which has the same relationship requirements as the Child Tax Credit. Therefore, we have disallowed the Child Tax Credit.
    We have disallowed the Child Dependent Care Credit because the child did not meet the residency test and was not physically or mentally incapable of caring for himself/herself. Because the residency test is the same for the Child Tax Credit, we have disallowed this credit as well.
    We have disallowed the Child Dependent Care Credit because you did not provide over half the support for this child or the child paid more than 1/1 of his/her own support. Because the requirements for the Child Tax Credit are the same, we have disallowed this credit also.
    EITC
    Because the dependent you claimed did not meet the requirements of a qualifying child for CDCC, he/she also failed to meet the requirements of qualifying child for EITC.
    Head of Household
    Because the individual did not meet the requirements for the Child Care Credit as it relates to the support test, you do not qualify for the Head of Household test. Therefore, we have disallowed that filing status.
    Multiple Disallowances
    Because we have disallowed your Child Dependent Care Credit, we have disallowed the related credits for the Child Tax Credit, Education Credit, and EITC. You also do not qualify for the Dependent Qualifying Child or Qualifying Relative exemption and the Head of Household Filing status.
    Large, Unusual, or Questionable Items
    During the audit of the Child Tax Credit and related issues, if a material issue is identified on the return, that issue should be questioned/audited with the approval of your manager.

Child and Dependent Care Credit (CDCC)

  1. Following are guidelines to determine if the taxpayer qualifies for the Child and Dependent Care Credit: The limit on the amount of the qualifying expenses is $3000 for one individual and $6000 for two or more. The credit percentage can be as much as 35 percent of the qualified expenses. Refer to Form 2441, Child and Dependent Care Expenses, for computations.

    A qualifying person is: Verifying information:
    The taxpayer’s dependent who was under age 13 when the care was provided and for whom the taxpayer can claim a dependent. Birth certificate, school records, or baptismal certificate.
    Military Personnel Acceptable proof of status
    Defense Enrollment Eligibility Reporting System (DEERS), which provides a list of authorized dependents whose relationship, has been verified. Leave and Earnings Statement (LES), which verifies if the taxpayer is paying a voluntary allotment for Basic Housing Allotment (BHA) payable to the dependents or custodial parent, or if the taxpayer is having child support payments garnished.
    or  
    The taxpayer’s spouse who was physically or mentally not able to care for himself or herself and who has the same principle place of abode as the taxpayer for more that one-half of the year. Marriage certificate (proof of spouse). Proof of disability: Doctor’s note or State certification.
    or  
    The taxpayer’s dependent who was physically or mentally not able to care for himself or herself, and for whom the taxpayer can claim an exemption Proof of keeping up home: Rent receipts, mortgage documents, property tax bills, utility bills. Proof of person’s claimed residency: School records, official mail. Doctors’ note or state certification verifying disability.
    See IRM 4.19.15.2, Child and Dependent Care Credit, and IRM 21.6.3.4.1, Non Refundable Credits Procedures, for income thresholds.
    Eligibility Requirement Tests Verifying information:
    The taxpayer (and spouse if married) must have earned income during the year. (However, there are exceptions for student-spouse or spouse not able to care for self) Form W-2s and/or Form 1099s
    and  
    The taxpayer must pay child and dependent care expenses so that he/she (and spouse if married) can work or look for work. Proof of payments to child care provider. Receipts and/or cancelled checks. If looking for work, a calendar showing interviews and dates. If no log or calendar available, statement from the taxpayer that the taxpayer was looking for work and the types of places the taxpayer was applying
    and  
    The taxpayer must make payments for child and dependent care to someone he/she (or spouse) cannot claim as a dependent. If payments made to child, he/she cannot be the taxpayer’s dependent and must be age 19 or older by the end of the year. Name on receipts or cancelled checks. if same surname, determine if claimed as a dependent on return. If not claimed, verify age via: driver’s license, birth certificate, or school records.
    and  
    The filing status must be single, head of household, qualifying widow(er) with dependent child, or married filing jointly. If married, a joint return must be filed or the taxpayer must meet the criteria in IRM 4.19.14.12.3, Statutory Requirement - Married Filing Separate.  
    and  
    The identity of the care provider must be provided on the tax return. Must include name, address, and TIN/EIN. If an individual, then SSN. Proof can be: Copy of provider’s SSN card, copy of provider’s driver’s license (if SSN on it), a copy of provider’s completed W-4 if household employee, copy of statement from employer if part of employer’s dependent care plan, or a letter or invoice from the provider with the needed information.
    and  
    Adjustments must be made for any dependent care assistance benefits provided by employer. Review Form W-2 Box 1 for employer provided benefits and ensure the excluded benefits are not used to compute the credit. See Part III of Form 2441.

    Note:

    If the taxpayer cannot claim the child as a dependent, the child may still be a qualifying person for the CDCC if:

    • The child was under age 13 or was physically or mentally not able to care for himself or herself.

    • The taxpayer is the child's custodial parent (the parent with whom the child lived for the greater part of the year).

    • The noncustodial parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents.


    If this applies, the noncustodial parent cannot claim the child as a qualifying person for the CDCC.
    if more than two taxpayers claim the CDCC (or the same qualifying children) see the tiebreaker rules
    Eligibility Requirement Tests Verifying information:
    The taxpayer (and spouse if married) must have earned income during the year. (However, there are exceptions for student-spouse or spouse not able to care for self) Form W-2s and/or Form 1099s
    and  
    The taxpayer must pay child and dependent care expenses so that he/she (and spouse if married) can work or look for work. Proof of payments to child care provider. Receipts and/or cancelled checks. If looking for work, a calendar showing interviews and dates. If no log or calendar available, statement from the taxpayer that the taxpayer was looking for work and the types of places the taxpayer was applying
    and  
    The taxpayer must make payments for child and dependent care to someone he/she (or spouse) cannot claim as a dependent. If payments made to child, he/she cannot be the taxpayer’s dependent and must be age 19 or older by the end of the year. Name on receipts or cancelled checks. if same surname, determine if claimed as a dependent on return. If not claimed, verify age via: driver’s license, birth certificate, or school records.
    and  
    The filing status must be single, head of household, qualifying widow(er) with dependent child, or married filing jointly. If married, a joint return must be filed or the taxpayer must meet the criteria in IRM 4.19.14.12.3, Statutory Requirement - Married Filing Separate.  
    and  
    The identity of the care provider must be provided on the tax return. Must include name, address, and TIN/EIN. If an individual, then SSN. Proof can be: Copy of provider’s SSN card, copy of provider’s driver’s license (if SSN on it), a copy of provider’s completed W-4 if household employee, copy of statement from employer if part of employer’s dependent care plan, or a letter or invoice from the provider with the needed information.
    and  
    Adjustments must be made for any dependent care assistance benefits provided by employer. Review Form W-2 Box 1 for employer provided benefits and ensure the excluded benefits are not used to compute the credit. See Part III of Form 2441.

    Note:

    If the taxpayer cannot claim the child as a dependent, the child may still be a qualifying person for the CDCC if:

    • The child was under age 13 or was physically or mentally not able to care for himself or herself.

    • The taxpayer is the child's custodial parent (the parent with whom the child lived for the greater part of the year).

    • The noncustodial parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents.


    If this applies, the noncustodial parent cannot claim the child as a qualifying person for the CDCC.
    if more than two taxpayers claim the CDCC (or the same qualifying children) see the tiebreaker rules
  2. If the above conditions are met, allow the deduction up to allowable credit.

  3. If expenses are for first or a higher grade then they are deemed to be educational and do not qualify for the dependent care credit. Expenses for kindergarten almost always will be educational, in which case they should be disallowed.

  4. Additional information regarding the Child and Dependent Care Credit can be found in Publication 503, Child and Dependent Care Expenses.

  5. For situations in which there is a duplicate dependent used to obtain the child and dependent care credit:

    1. For EITC cases the 3 letter process; ICL, 30 Day and SNOD applies. Discretionary cases can use the 566B Combo letter to start examination.

    2. Request documentation applicable to the duplicate condition (taxpayer must certify that he has a qualifying child per the rules as shown in the (1) table of this section).

    3. Follow normal examination procedures to work case.

    4. If your taxpayer is allowed the credit, you must open the other duplicate dependent case and disallow the credit.

  6. Rule Summary:

    CDCC (DQC, DQR)
    Relationship Same as dependent QC, physically or mentally incapable dependent QR spouse IRC 21(b)(1), IRM 4.19.14.6.5, EITC-Personal Exemptions and Dependents.
    Residency Same as dependent QC IRC 21(b)(1)(A), or physically or mentally incapable dependent QR or spouse who lived with Taxpayer more than 1/2 year IRC 21(b)(1)(B) and IRC 21(b)(1)(C), IRM 4.19.14.12.2, Child and Dependent Care Credits (CDCC).
    Age Expenses paid up to age 13 or for physically or mentally incapable dependent or spouse IRC 21(b)(1).
    Support Same as dependent QC, physically or mentally incapable dependent QR IRC 21(b)(1)(A) or N/A for incapable spouse IRM 4.19.14.6.5.
    Citizenship Same as dependent QC, physically or mentally incapable dependent QR N/A for incapable spouse IRM 4.19.14.12.2
    Married Child Joint Return Does not apply
    Tiebreaker Rules Does not apply
    Requirements and Special Rules Must be dependent QC or physically or mentally incapable spouse / dependent QR; except divorced / separated parents IRC 21(e)(5); except kidnapped child IRC 152(f)(6)(A).

Statutory Requirement – Married Filling Separate

  1. Generally, married couples must file a joint return to take the credit.

  2. However, if taxpayers are legally separated or living apart from the spouse, they may be able to file a separate return and take the credit if they are not considered married.

  3. Taxpayers are not considered married if all the following apply:

    1. He/she files a separate return.

    2. He/she provides a home for a qualifying person for more than half the year.

    3. He/she pays more than half the cost of keeping up his/her home for the year.

    4. The spouse did not live in the home for the last 6 months of the year.

Education Tax Credits - American Opportunity Tax Credit (AOTC) and Lifetime Learning

  1. See IRM 4.19.15.3.1 , Lifetime Learning Credit and Hope/American Opportunity Tax Credit (AOTC) for working this credit.

Above the Line Deduction for Qualified Higher Education Expenses

  1. See IRM 4.19.15.3.1, Lifetime Learning Credit and Hope/American Opportunity Tax Credit (AOTC), for explanation and procedures for claiming deduction.

American Opportunity Tax Credit

  1. See IRM 4.19.15.3.1 , Lifetime Learning Credit and Hope/American Opportunity Tax Credit (AOTC) for working this credit.

Qualified Adoption Expenses

  1. See IRM 4.19.15.5, Adoption Credit and Qualified Adoption Expenses, for explanation and procedures.

EITC and Premium Tax Credit Procedures

  1. In FY 2015 a new program was developed to select taxpayers for examination that break both EITC Rules and Premium Tax Credit error codes.

  2. The scope of the audit will be full scope EITC; EITC, dependent(s), filing status if head of household, and Premium Tax Credit (PTC).

  3. All statutory adjustments apply based on dependent being allowed/disallowed.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. The cases selected with EITC and PTC will be opened on AIMS with a PTC project code. See IRM 4.19.14.3, Program Description, (1) for project code descriptions.

  6. Follow existing procedures in IRM 4.19.14.5, for working full scope EITC. Standard exam letters and EITC suspense times apply.

Examples of Acceptable Documentation for EITC claims (not all-inclusive)

Relationship (copies of documents /records or letters on official letterhead
  • Authorized adoption agency or authorized placement agency

  • Birth certificate

  • Child care provider

  • Court document

  • Custody order

  • Government agency verification of benefits received for the year

  • Marriage certificate

  • Medical records

  • Military records

  • Parole office files

  • Paternity DNA test report by an accredited DNA testing laboratory

  • School records (may require 2 years since school years overlap)

  • Separation agreement, decree of separate maintenance, divorce degree

  • Social service records

Residency (copies of documents/records or letters on official letterhead)
  • Bank statements

  • Bills/cancelled checks for mortgage payments, rent, utilities, insurance

  • Driver’s license

  • Earning statement/check stub

  • Eviction notice

  • Indian tribal official

  • Landlord or property manager (may include rental agreement or statement showing the fair rental value of your residence)

  • Medical provider

  • Mortgage receipts

  • Paperwork to obtain a post office box

  • Parole office files

  • Place of worship

  • Placement agency official

  • School (may require 2 years since school years overlap)

  • Social service agency

  • Statement or records from a homeless shelter

Citizenship (copies of documents/records or letters on official letterhead)
  • Birth Certificate

  • DHS, Department of Homeland Security

  • Driver’s license if citizenship is a condition required by state law

  • Green card

  • Library card

  • Parole office files

  • School records

  • Social Security card

Age (age 19 or under age 24 unless permanently and totally disabled)
  • School records

Age (permanently and totally disabled
  • Health care provider

  • Medical doctor

  • Social service program agency